Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

Change his mind about approval. Latery powell will say that the u. S. Economy is improving, but has a long way to go before fully recovering from the virus. The st. Louisrom fed president this hour. Haidi investors are waiting to hear from fed chair powell. But we know the gist of what he is likely to say given that the commentary has been around how recovery will be, managing expectations. The recent fairly positive data points we have gotten. S p active futures after the session overnight really erasing some of those earlier losses as well. Some of the gains we have seen trading flat at the moment. U. S. Stocks fell. Could have been worse if not for that rebound in tech shares stemming the losses. It did get close to that threshold to be considered a market correction. 0. 1 ires down by should say by 1 at the moment. Japanese markets are closed for a second day this week for the autumn equinox holiday. ,ydney futures down by 1 trading in new zealand down by 0. 1 . Victoria has come out with their covid19 cases. We see 28 new cases, so a jump from the numbers yesterday. People would be hoping we would be down close to single digits. Shery lets turn to our top story. The tiktokoracle deal looking shaky after President Trump says he might renege on his approval if he finds oracle does not have total control of the new u. S. Entity. The Chinese Government is signaling reluctance through state owned media. Our chief north asia correspondent Stephen Engle us from hong kong with the latest. How much doubt does this cast on the deal . I hate cliches, but what a difference a day makes. Donald trump speaking offthecuff saying he has approved the deal that has been reached between oracle and bytedance with the additional partner of walmart. , thisafter Digging Deeper table napkin deal hastily valuation,60 million 60 billion valuation, that is a lot of money to look away from. Donald trump is potentially saying maybe we did not get everything i demanded. That is the assurance on National Security and of course, american ownership. Oracle and walmart together would take a 20 stake. 12. 5 for oracle. 7. 5 for walmart. 80 for bytedance. There would be a planned ipo down the pipe that would help. Ilute that 80 chinese stake also you look at the 33 american ownership of bytedance, right . Haveu. S. Entity would american investors including General Atlantic and sequoia. They would take american ownership upwards of 53 , but that is not assuaging the fears of donald trump. He says, telling fox news overnight, he wants Tiktok Global to be totally controlled by oracle. Shortly after those comments, it the global times editor in chief global times is the mouthpiece of the peoples Daily Associated with the peoples daily, the mouthpiece of the communist party, he said beijing likely would reject the deal in the current form because the agreement would endanger chinas National Security interests and dignity, and it did not help matters also yesterday, a blog post, bytedance defended what it says is its full control. It will retain full control of its algorithms and only give limited access to oracle to its source code. Maybe bytedance playing to one side of this twosided equation, playing to the chinese fears, but again, that does not work in its favor. Very complicated. And a real emotional roller coaster you have been covering. What is the likely outcome we see . Me again tomorrow. It might be different. But keep in mind if we are talking strictly about Donald Trumps approval, it has to appeal to two main criteria. Does it appear as we head to the Election Campaign that he is being tough on china . This result has to be has to give those objects. Good for americans . Make America Great again, right . Does the 25,000 pledged to jobs were to that equation . Does the fact four out of five Board Members will be american including the walmart ceo and the managing partner of Sequoia Capital as well as the head of the General Atlantic on the board . Four out of five would be american. Does the fact theres going to be an ipo that would dilute chinese ownership . A number of things as well as being headquartered in texas, does that assuage National Security concerns . We will have to revisit this. As far as the chinese, there has to be dignity involved. We all know, especially in hong kong, china is really big on National Security. Perceived and real threats. Giving out its source code and the algorithms to the americans is a security threat, or is this a face issue . That is what the chinese will have to decide. Why not both . Our chief north asia correspondent Stephen Engle with the latest. To Karina Mitchell with the headlines. Fed pebble will tell congressional lawmakers the u. S. Economy is improving but has a long way to go before fully recovering from the pandemic. Comments released say many can indicators show marked improvement for employment and overall activity well below precovered levels. Highlyh forward remains uncertain. The st. Louis fed president told bloomberg the policy of letting could help. N hot i think it has a good chance of working. The simple version of this is that the fed will be much less preemptive about trying to raise rates when inflation is below target. Announced news sanctions on iran despite criticism from european allies and heated debate at the u. S. Security council. Washington says tehran is in violation of the agreement President Trump abandoned and he expects all u. N. Members to back u. S. Actions. However, Security Council nations have said they refuse to support new sanctions. An initiative to deploy vaccines around the world is moving ahead. 156 countries. The goal is to have 2 billion doses available by the end of next year focusing initially on Health Care Workers and people at high risk. Infection numbers are rising. Fatalities approaching one million. Urgentohnson will hold talks as covid19 cases surge in the u. K. His top scientific advisor says there could be 50,000 new infections each day next month without urgent action. That triggered speculation of a new lockdown. Jp morgan warning a twoweek shutdown could knock to percent off gdp and bring new stimulus to the treasury and the bank of england. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Still ahead, trump zeros in a Supreme Court pic favored by antiabortion advocates and he wants it done before the election. Next, we are joined by Wells Fargo Asset Management president and global cio to talk about the outlook for markets and the risks ahead of a selloff continues. Pres. The mood has soured and created air pockets for the market. The dollar has spiked. We have seen yields falling a little bit. I think a lot of it is atmospherics. We have come off the back of a couple of weeks when you have already questioned the valuation of the vaccine. In the end of the year, virus numbers are going to pick up. We have the u. S. Election approaching. This is the perfect storm for a lot of volatility. Concernnk there is there is uncertainty around the election is going to stay with us after the election. Our earlier guests talking about the selloff in the u. S. Session. Joining us now is Wells Fargo Asset Management president and global cio kirk hartman. Good to have you with us. Given all the risks we have listened to, is there anything other than a way down and an inevitable correction, perhaps a bigger selloff from now on given everything we are facing going to the fall . You want to own those stocks and securities at the end of the year and look through nearterm volatility. The expectation for 2020 is very strong. If we get that economic recovery, the markets will do well. China had achina, difficult time, down Something Like 7 of gdp, now we are seeing numbers may be back to a percent growth. Going to have nearterm volatility . Absolutely. You mentioned china. We are seeing doubts over another round of stimulus measures. What is the risk that even in china we saw the one year fiveyear lpr being held steady because the economic recovery was going very well, but perhaps we might see tightening that could be to seemed too soon. That may well be the case. The pmi numbers for manufacturing are above 50. It is showing expansion. Worryr point, the biggest in terms of china and the u. S. Is just that the entire Global Economy does not achieve what otherwise could achieve because of regionalism. Definitely, can we have downturn in the u. S. And china . I think so. I think once we get through the end of this year, next year will be better. What about opportunities for emerging markets . Typically when you have some of these qualities we are seeing the it comes to the dollar, seemingly resilient recovery in china, all of this seemed to be lending positive voices to the rest of the emergingmarket complex. Interesting,hat is forward piece for the u. S. Are 20. The emerging markets have value. Normally in a weaker dollar environment. The emerging markets do well also. U. S. , you had the exact opposite. You had the run to the safety of the dollar, the run to the tech stocks, viewed as the longerterm scene would be a rotation to value, meaning industrial manufacturing and financials. And the concern over these individual capabilities when it comes to handling the virus situation is a big question mark. I want to get your views when it comes to how picky you need to limited capacity for emerging markets and all global Central Banks. Debt,g at emergingmarket we are seeing local debt yield rising in recent weeks. Is this the time to get choosy when it comes to developing economies debts . We are getting to the limitations of central bank policy. That is a great question. We live in a world of debt. Whether it is the Central Banks in the u. S. Or abroad, the Balance Sheets of the Central Banks are clearly stretched. I think as long as Interest Rates stay low, which is clearly the strategy of the fed and the global Central Banks, that will be fine. I think there is so much pentup demand. I just have a sense that once we get through this virus, there is just going to be a real resurgence in consumer spending. Everyone is being pentup for so long. That is what we have to see. You know, look. There are a lot of tensions in the world. The worry is about the corona winter. In the Northern Hemisphere especially, where the weather is areg to be as good, people dining inside. The virus could be very difficult and could be hard on all the economies area economies. Given the pentup demand we could see, does that mean we could finally see some positive inflation other than just asset Price Inflation . That is a great question. The fed clearly has taken the strategy of growing our way out, meaning they want to take the real rate of interest below the growth of gdp. I call that growing your way out area out. The worry would be you get inflation. Nearterm, the fed and a lot of Central Banks have clearly indicated steady is the course and things are not going to change. Again, that that behooves the strategy of looking through the volatility, looking at what you want to own, look for the earnings next year. Before we let you go, we just have the first 20 days of trade numbers. We saw chip exporters rebounding more than 20 year on year. How positive is your outlook for asian tech given what we are seeing in the Semiconductor Industry . Very positive. I think theres a lot of value in what i call peripheral asia tech, meaning south korea, taiwan, robotics in japan. China got the message it needs to diversify its supply chains, it cannot rely on the u. S. Has much, a lot of trade tensions. China is going to be not only building its own ship industries, but also very much relying on taiwan and south korea and japan for a lot of technology and chips. Kirk hartman, always appreciate your time. We are hearing from tim cook at the moment speaking on the opening of the atlantic festival, talking about really responding to the anticompetition concerns across big tech, saying apple is not a monopoly, it is very competitive across markets and that companies deserve that scrutiny. This is a narrative we have seen come down from regulators and critics. Politicians wanting to break up big tech. Also talking about work from home and the impact of the pandemic on the labor force. Saying 15 of employees are back in the office and he cant wait for everyone to come back to the office, but has been impressed with apples ability to work remotely. Reallyso saying apple was turned upside down, providing covid19 relief, helping with production of test kits as well. Issues withing the relationship of apple and the Current Administration saying they are working on haveorce training, they focused on policy and not politics and that they have discussed Climate Change with incident trump as well. We are just getting some of those headlines from apple ceo tim cook speaking at the atlantic digital conference right now. Donald trump says his pick for the Supreme Court will be a woman. We get details on who the frontrunners are just ahead. E just ahead. President trump is moving therd nominating a judge to seat of Ruth Bader Ginsburg. Trumps finalists in 2018 he replaced anthony kennedy. Jordan, tell us about President Trumps favorite at the moment. What implications is this likely to have for policymaking Going Forward . She is a federal Appeals Court judge, the level right below the Supreme Court. She is a favorite of religious conservatives. When youre talking about major hot button issues like abortion rights, obamacare and gun rights, she is someone who at least the president and his allies on the republican side believe will issue rulings in their favor on those issues if she is nominated and confirmed to the bench. She is a midwestern catholic. What impact could this have on the election. Cuts two ways. Talking to a lot of sources on the conservative side of the believe it is going to help her win over swing voters in swing states. Seven children. Republicans think she might appeal to suburban women. She would be replacing Ruth Bader Ginsburg, who was an icon for liberals in this country. The prospect of having her replaced with someone, by barrettsth coney views is going to motivate the other side as well. The november election is going to have more farreaching consequences with the u. S. Policy landscape for decades to come. What does that mean when it comes to the pressure coming down on biden following that time in terms of democratic pressure he would need . Possibilities are endless. First of all, biden, there has been some pressure from the right, trying to use this as an issue, get biden to reveal who is on his own Supreme Court shortlist with the aim of him ,xposing who he is thinking of with democrats, they decide to focus on health care. There is a challenge to the obamacare law that is going to be before the Supreme Court in a matter of months. Democrats are saying this election is going to determine the state of that law. Republicans, by trying to put another conservative on the court, are trying to overturn that line take away health care from millions of americans. Expect to hear that coming from the Biden Campaign leading up to the election. Lets get a check of the latest business flash headlines. Shares slumped sharply amid the fallout from alleged suspicious transactions. It is one of almost 100 banks named in leaked u. S. Documents that say to trillion dollars in transactions over two decades could have been money laundering. Hsbc has temporarily banned staff from posting on social media accounts. Over fears of negative reactions. A whistleblower at boeing is calling on aviation regulators to add extra protections concerning the grounded 737 max. Raised about been the planes designs, telling the faa fixes dont address the hazards implicated in the crash the ground the jet. Tesla is using its battery sales to meet demand. Elon musk tweeted the possibility ahead of the companys annual Shareholder Meeting and socalled batteries a presentation, expect to showcase innovation in electric cars. Teslas electric vehicle rival nicola slumped after Trevor Milton resigned as executor chairman. An analyst says his departure will be seen on wall street as kolaspunch for ni ambitions. Next, our exclusive chat with the st. Louis fed president. This is bloomberg. This is daybreak asia. Tiktoks chinese owner says it will retain control of business in the u. S. , seeming to contradict President Trumps assertion it would be run by americans. It is also contesting the president s claim the u. S. Government will pocket 5 billion as part of the deal. Reports from beijing say china has accelerated a blacklist that could hit u. S. Tech companies. Sources say leaders are split over one and whether to pull the trigger. The high level debate shows china is unsure how to respond to threats from washington and may wait until after the election. So far, china has reacted in kind to u. S. Moves to avoid driving the relationship toward collapse. Ecb president Christine Lagarde says there is still room to add stimulus and it can adapt its program in if the euro zone economy needs help. Shes is the Third Quarter will see a rebound. Ecb tosts expect the expand its 1. 5 trillion bond buying to bolster the rebound and revive inflation. Should keepthe eu pursuing a trade deal with the u. K. It warns any british violation of the Brexit Agreement would bring talks to an end. Former u. K. Prime minister theresa may is the latest conservative to reject the bill saying she will not support the move. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Shery Federal Reserve chair Jerome Powell says the u. S. Economy is facing a long, uncertain road to recovery. He is set to speak alongside Steven Mnuchin tuesday. Lets bring in our Global Economics and policy editor. What are we expecting to hear from powell . We have a pretty good idea. His prepared remarks were released this evening. Has been saying about the pandemic, the need for fiscal spending he has been saying for some time, he says many indicators have shown improvement, but employment and Overall Economic activity remain well below pandemic levels. The path ahead looks uncertain. There is going to be more to be done from all levels of government. Certainly the fed is doing what they can do. They announced their new framework. They are going to insist inflation go higher before they think about raising rates, etc. The virus path is another thing he mentioned. , even inestimonies speeches when reporters have yes, morehas said fiscal spending is needed. Officials have indicated if we dont get that, that uncertainty about the path ahead becomes even greater. Of course, the most complicated factor, the politicization of this process. Republicans and democrats have tried to get something passed. They have made no headway. He will be pressed hard, it will be interesting to see if he goes any further that he has in the past. Earlier when you spoke with the st. Louis fed president James Bullard, what were the Key Takeaways . Me, hes interesting to is pretty optimistic. He thinks this new framework where they say inflation has to be at 2 and going above 2 , in addition to maximum employment in the economy, is whats going to get to work. Not that is going to happen overnight, but it is going to happen. I asked whats the purpose of this new guidance . Is it because you think you will cause people to believe you and Inflation Expectations go up . Or do you just want to make sure the fed does not make the same mistake it made in 2015 when janet yellen says that was a mistake, they should not have moved so early . Lets listen to his response. We react a little less aggressively to the shots, i think that will lead to higher Inflation Expectations. We will end up exceeding the target. If there was ever a time when you thought maybe the ingredients for inflation are in gigantic fiscal deficits combined with more relaxed really rapidand growth off the charts, you probably will get some inflation, i think. Even in the near term here over the next year, so i dont think it will be quite as quiescent as it was before the pandemic. Said friday that you see, as many people do, this massive rebound in thirdquarter gdp. People are looking, 25 , 30 , another reason why it is going to help get inflation on track to 2 . I want to ask you about this. It does not look like theres going to be a stimulus package before the election. Hard to say when it will be passed after. What difference does that make, if any, to your core cuts . Original fiscal package was passed in march, april, summer bills altogether, the cares act in particular, that was calibrated to a bigger shock than the one that has actually developed, where certainly in a pandemic, there has been a disruption, but not as big as what they were thinking at that time. What we ended up doing is. Orrowing 10 to 14 of gdp you look at current forecasts for this year, it looks like gdp or national income, Household Income, will only be down 3 or 4 . You have borrowed quite a bit to cover a whole that does not look like it will be as big. Im hopeful we still have enough in the pipeline to push us theugh, get growth going in second half of the year, that seems to be with going, Third Quarter. I think we might be ok here. I dont think there is as much of an imperative about a new fiscal package is there might july or as it might have seemed in august or july. Maybe congress doesnt feel it as much. Or are you also saying given all the things you set about the economy and the stimulus that has already passed, it is not as necessary as we thought . Many fed officials have said more stimulus is needed. If youuld see recovery dont get it. I guess my point is what people were thinking was that 2020, at the end of the year, you know, Household Income would be down 10 , a percent or 10 , Something Like that. We went out and borrowed 10 or more on International Markets to try to cover that whole that hole. Now it looks like it is only down three to 4 . We still went out and borrowed 10 . In some broad macroeconomic type of calculation, we have enough resources to cover this. Of course it is unevenly distributed. There are many issues around exactly how it gets to the disrupted households. , ifar as the total size think we might be ok. We might be able to sustain a recovery through this. That was Kathleen Hays in the conversation earlier. Coming up, the Global Program to deploy coronavirus vaccines is growing but without china for now. Dozens of countries have signed onto the Global Program to distribute coronavirus vaccines around the world. China along with the u. S. Are not on the list for now. Michelle cortez joins us on the line. What is the latest from this Global Program . Will it have enough to meet demand . What are the implications of not having the major superpowers that are driving this vaccine among its membership . Countries we6 consider taking part in this vaccine program. They are looking to raise 2 billion to start making sure we are getting solid enough Vaccine Coverage for emerging markets and economies where they might not have enough money to get all the vaccination they need to protect their populations against coronavirus. It is really a critical issue. If we dont get coronavirus under control around the world, we are all going to be vulnerable to it. We continue to see more headlines, perhaps progress on the manufacturing side of things. Headlines earlier this hour that Samsung Biologics and astrazeneca signed a manufacturing partnership. How significant is this . Astrazeneca is making sure it has enough manufacturing capacity across the world to meet any kind of need that has. The agreement did not specifically say samsung was going to be manufacturing astrazenecas coronavirus vaccine, but astrazeneca is one of the three companies in the lead when it comes to vaccinations. They are going to want to get their product out across the world. We have heard manufacturers talk about this. All of the Drug Companies have said they will work collaboratively with each other, not only making their own vaccines, but if they are not effective, they will produce for other companies. Just like samsung is agreeing here to manufacture for astrazeneca, it is going to be a collaborative effort to make sure we get enough vaccines. Meantime, with regards to this kind of confusing messaging from the cdc about the airborne nature, whether this can be spread through airborne particles, what is the latest . Going back and forth about this one over and over again, obviously, coronavirus is transmitted through the air. The most common way to transmit it, cdc and other experts believe is through coughing or sneezing or even breathing in close proximity to someone else. The cdc did put out recommendations last week with information saying it could be aerosolized. Aerosolized means tiny particles that float in the air and stay hanging in that environment even when the person who is infected has left. That is a terrifying idea, that you could be across the room from someone and get coronavirus. We kind of all believed that was not the case. The who asked about it. They said we are going to go back and look at that recommendation. That information we are putting out there. It is a moving target. At the moment we do believe it is not aerosolized. In general it does not hang around in the air. It tends to fall quickly. Bloombergs Health Care Reporter Michelle Cortez with guidelines on the coronavirus. Next, elon musk hints at a Strategy Change at tesla ahead of the companys highly anticipated battery day presentation. We will ask what we might hear from him later. Later. Tesla is to hold its first ever battery day event ahead of the showcase, elon musk said the carmaker will need to start producing its own battery sales to meet demand. Outsidepurchases from suppliers. Sophie kamaruddin joins us with the breakdown. Here is the snapshot. China expected to remain the largest tv market in 2020 by a narrow market margin. Mainland sales have started bouncing back in light of policies and steep discounts. But bloomberg forecasts a 14 drop this year. In japan, ev takeup will remain sluggish. South korea expected to be the only asian country to register ev sales growing supported by the Green New Deal rollout by the new administration. The goal is to have more than one million electric vehicles on south korean roads by 2025. South korea is home to the worlds top battery maker, lg energysolutions. Chinas company and japans panasonic and is expected to grow to 26 billion dollars in five years with annual Revenue Growth estimated at more than 30 as customers like tesla see sales tightening. , seen as teslas rival, has seen shares plunged after its founder decided to step down. Su keenan is following these developments. At one point, shares down as much as 30 . Is this really seen as a hit to the future of the company, given that he was such a driver of these grand ambitions . He was the creator. The decision to step down clearly costing him. Shares of the company Trevor Milton founded are down 20 by the end of the session. At one point, down 30 . Oft caused a personal loss about 1 billion. The former chairman was forced andive up his board seat 166 million in stock units as part of the agreement to step down. The stock has been on a roller coaster ride. Soaring once he took it public in a reverse merger. He got a third of the phoenixbased company. We saw shares continue to fall, continuing the roller coaster ride. The college dropout, has been a rough ride. Shares took off after that reverse merger made it public. What we have seen as milton has agreed to step down after the company has come under intense scrutiny from a lot of analysts and shortsellers who noted the company has yet to generate meaningful revenue. Right g tuber, the turning to uber, the ridehailing giant is facing different pressure. Investors want the ceo to overhaul. Uber stop doing well enough considering pressures from the pandemic, but it was once seen as the front runner in the autonomous driving space. It certainly had more than his share of speed bumps in recent months. Analysts say it is struggling with Software Issues and losing its top talent to the rivals. The result, it is lagging behind those rivals. Investors are getting antsy about continuing the longterm science project, if you will. They are seeing that is really not helping the bottom line. Shareholders, softbank and benchmark among them, have been encouraging the ceo. Turning to indias group which has a hand in everything i. T. ,utomotive space to the executive director told Bloomberg Businessweek about how the company is being impacted by the covid19 pandemic. The impact has been significant on us as well as everyone around us. We saw the month of april essentially wipe out in terms of revenue. Thelocked down in india was end of march. Since then things have come back. Much better than what we expected. Frome a number of this as well. While cobit is unfortunate and we do hope things get better soon. It is also teaching us lessons not just survive, but thrive. That will make us stronger. What have you learned as a result of the virus when it comes to Risk Mitigation at your company . Leaders,e got to, as start being able to look around and be able to look at various scenarios. Ago. Lked many years many years is an understatement. The world has gotten much more uncertain since then. Options, take certain bets we can double down on. He has talked about covid being something that had been foreseen. You feel comfortable in terms of pricking visibility . Individual companies have said we dont have any visibility for the rest of the year. Meantime you have the u. S. Central bank talking about they have visibility enough to say we are going to keep rates really low. What visibility do you feel comfortably talking about . Is it the end of the year . Is it next year . Do you not really feel like you have any . It is very different across sectors. The difference is dramatic. Let me give a few examples. Our farm equip business. Coming out of april with zero sales, having yearoveryear growth in may of 2 , which we had not expected. We thought, that is great, we are getting back on track. But we had 2 yearoveryear growth. June we had 10 yearoveryear growth. July was 28 . August was 69 yearoveryear. The Farm Equipment business has come back very strongly. The i. T. Business expected a number of cancellations, expected customers to be under stress. The last quarter was the best ever for them. The i. T. Business is really extremely good. Both are driven by various factors. As you look at the auto business, the has been much bigger. Consumers have not been buying. We were at 50 capacity a couple months ago. Because of various supply stresses as well. That has gone up to 70 . Visibility is looking poorer in terms of what we would expect. It could take six months to get close to normal. Getting back to normal may take longer than that. Our holidays business in hospitality has seen huge demand. Because of how we need to manage the virus we only have 50 of rooms available. Bookingsrts are seeing and finding it difficult to deal with the demand. I think it is different in any industry. See a bigger second wave. If things stay as they are and start getting better, many of our industries will be in good shape. We are worried about many of our suppliers. Through farne higher risks. It is important for us to make sure we can help them. The mahindra cfo and managing director there. Microsoft says it plans to buy zen a max media zenimax media, the largest gaming purchase ever. Bethesda publishes games such as the elder scrolls, doom, and fallout. It will give Microsofts Xbox business a boost for game developers. To spin offanning j. D. Health. The Online Health care unit of chinas number two Ecommerce Company hired bank of america and ubs to work on the listing which aims to raise a billion dollars from the share sale. The worlds top cruise lines are planning to host a return to the sea is recommending covid19 tests of all passengers and crews. It is one of 70 steps outlined in a report to the cdc in a panel by Royal Caribbean and norwegian saying they will clear the way. Asia, weaybreak talked to Cambridge University about the movement of dirty money around the world. Plus, the julius baer head of Asia Research is with us next. Welcome to bloomberg daybreak asia. Asias major markets have just open for trade. Declines after wall street edge back from a correction and europe fell sharply. Global stocks and a full day of decline the longest losing streak in several months. Global banks face a stormy session amid claims of suspicious financial dealings monday after the report exchanges fell in london. Bytedance would retain overall control in the tiktok oracle deal and President Trump now saying he could change his mind about approval. Shery japan on holiday. South korea and australia coming online. Lets get a check the markets. Inhie checking on the open sydney, to extend losses for fourth straight session. Holding below 76. The aussie dollar holding up to day decline against that greenback and the three are yelled pushing below 25 basis points ahead of the rba deputy governors speech later this morning. Ahead of that we have a note from Goldman Sachs in the Fourth Quarter they expect more measures from the rba to keep the cost of fiscal expansion encoding a rate cut in november and more qe. Sydneythium minors in ahead of tesla battery day. The open and south korea, the kospi under pressure while the korean yuan is retreating from won is returning from a generally high. Tesla says ter elon musk says tesla will boost purchases from suppliers encoding lg. Thatg will seek and tess will seek to make its own given the rise and even demand. A manufacturing deal with astrazeneca. A check on commodities. Wti closer to 40 bux a barrel, with the storm approaching the texas coastline. This offsetting the drop overnight sparked by libya planning to resume exports of crude. Above 1900e see gold after the worst drop in five weeks in the face of a stronger dollar. D many nowasdaq swinging to gains, but ward Morgan Stanley morning that yes textile of has further to go. After the drop of the hung sand we are hang seng, seeing a bearish emergence of the index set for quarterly drop. The shanghai composite on the other hand is set for the best quarter since march, 2019, with financials among the biggest boosts. We are she struck bets climbing as the market were seeing short bets climbing the market around the 3300 level. Indextf tracking the star opening for subscription on tuesday. Haidi for Market Analysis now the head of Asia Research. Mark, great to have you. As we see the s p 500 closer to a formal market correction, as a correction just a correction . For all we heading for a given the right deal of uncertainty and patching us over the Covid Recovery . Great deal of uncertainty. Dry would keep my powder because we have had one of the most remarkable recoveries, in my career. Your member the big selloff in march . Typically one of those takes 24 months to recover and then you build a base. This type we just rocketed right back up. I do think it can go down more. But i also dont think it is the beginning of a bear market and the reason for that, i guess, is threefold. First we are not entering into a recession, we are coming out of one. Financialn natural conditions are going to be easy for many years to come. I really do not think the fed or other Central Banks are going to let rates go up much. Governments have such large debts now that they have built up to fight the virus, that they need to keep rates lower to pay those debts off. And then, yes it is true that there is impasse in congress about additional stimulus package. But when i look at the unemployment rate, it one from 3. 5 to 14. 7 and now it. 4 8. 4 , i dont know how any people need the additional stimulus. But if you sadist 10 broadly, than the other 90 part if you say that it is 10 broadly, then the other 90 are doing fine. So the 10 alone suffering, and im sorry for them suffering but i do not think it is enough to create a bear market. Haidi i wonder your views when it comes to emerging market assets. You added see ny in in your portfolio to balance. Local currency debt rising toward the key average, are we reaching a point that despite usual factors that would create a bullish and environment for emergingmarket assets, a weaker dollar and a strong recovery led by china, are we having to get more picky when it comes to p. M. Debt because of debtimitations em because of limitations what central bank can do . Very much and you always have to be picky when it comes to debt, because it is about the quality of Balance Sheets. Yes, theink that chinese rmb bond market is one of that rare pockets and fixed income, not just in emerging markets but in the world. It has a good riskadjusted yield, because the rmb denominated 10 year Government Bond yield is 3 . As you know that is far above 0. 7 , 0ear treasury at the german bund is at 0. 5 , and the data pack for august four china showed a good return to growth. I just read during golden week theyre looking for a 10 rise think im sorry, in passenger traffic there for the airlines. Remarkable when you think about a 10 year on rare debts year on year compared to what is happening elsewhere in the world. Year on year. The one place we like is china. Shery given the economic recovery we are seeing in china, no wonder we continue to see the rally in the chinese yuan. Chart on the bloomberg shows it is gaining ground against the dollar yuan also pushing up against a basket of currencies. So where do you see the chinese yuan going from here, especially when, on the other side of the quite, you continue to see these tensions with the United States . , the other side of the coin you continue to see these tensions with United States . We see it strengthening and it has strengthened already quite a bit. You might know that the government in china has changed their policy directive from out and wrote initiative, remember that one . From 2013until this year it was all about the belt and road. Now it is all about, i think they call it inner loop. Inner loop means focusing on the domestic economy. On that basis, i think they rmb,d be happy to tolerate because they are not trying to export as much anymore. They are trying to develop their own economy. So i think that it will be strong. I do not think are going to let it go crazy strong. But i think they will let it gradually appreciate. Also is assigned to the rest of the world that look, china is a good, strong economy. It is nice to see a currency getting stronger. The other thing, though, is the dollar. And of course the dollar was stronger overnight, so that we not be helpful to the rmb. But i think that was more and response when i did that we might get returned to lockdowns, in many parts of the western world, which, i think, we will find, if there are lockdowns, they want me nearly as bad as beginning of this year. So we also do think that the dollar will continue to weaken, which would play into rmb strength. The fact thatout authority seem to be slowing to the pace of easing and support for the economy, what impact without have on asset prices . We saw the oneyear year lpr and fiveyear being held steady again. If youre talking about china, that i think it is fine, because i am sorry, i cannot really were member the numbers off of the top of my head but the august numbers were really good. Im trying to member, retail sales was up 7. 5 or Something Like that. There is no need for the Chinese Government to similar its economy. It is a very different story from in the west, largely because of the way that covid was suppressed so early and effectively there. Head of Research Mark matthews, great having you with us. Canberra tellsof us why it is possible impossible to stop illicit funds moving around the world. Up next, Steve Mnuchin is confident President Trump and china has doubts on oracles tiktok deal going through. We will bring you uptodate. This is bloomberg. You are watching daybreak asia im Karina Mitchell with the first word headlines. Jay powell will talk to congressional lawmakers tuesday. The u. S. Economy is improving but has a long way to go before recovering from the pandemic. Many Economic Indicators show marked improvement in employment but employment and overall activity remained well below precovered levels. The st. Louis fed president told bloomberg the new policy of letting inflation run hot could help. At they could as good chance of working. I think the simple version of this is that the fed will be much less preemptive about trying to raise rates to contain inflation when inflation is below target. Karina President Trump is said to be leaning toward Appeals Court judge amy barrett to succeed Ruth Bader Ginsburg on the Supreme Court although he is considering as many as five candidates. Barrett is a midwestern catholic, a favor of antiabortionists. The president planned to announce his choice before the weekend and wants Republicancontrolled Senate confirmation before the election november 3. The u. S. Announced new sanctions froman despite criticism allies and heated debate at the un Security Council. Is ington says to ron violation of the 2015 accord that President Trump abandoned and he expects other countries to back u. S. Actions but 13 have said they refused to support the new sanctions. Global news 24 hours a day on tv and quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Tiktokoracle deal is suddenly looking shaky after President Trump said he might renege on his approval if he finds oracle does not have total control of the new u. S. Entity. The Chinese Government is also signaling reluctance on the deal through state owned media. Our chief asia correspondent Stephen Engle joins us from hong kong. How much doubt does this cast on the deal . There is more doubt than yesterday when donald trump apparently speaking offthecuff saying he had given in concept approval for this deal between oracle and its partners and bytedance for this combined 20 stake in the u. S. Entity called tiktok level. But again, the Commerce Department has given one week past the deadline of sunday for it to be banned to figure out the deal. Yesterday it seemed like it was going to happen. Today, less so, because of these comments from donald trump. And if you look at the ownership structure, heres the problem. Because the way has been written out, fairly hastily i might add, tiktok would take a 12. 5 stake and walmart 7. 5 for combined 20 . That leaves bytedance with 80 . If there is an ipo in a year, that chinese share would be diluted. But you look at the ownership within bytedance, and they have u. S. Shareholders as well, including Sequoia Capital, General Atlantic and others. This deal would make it majority owned by american interests, within the shareholders, about 53 if you do the math. 33 bytedance ownership. Still, donald trump telling fox news overnight, that the Tiktok Global needs to be totally controlled by oracle. Heres the issue. Shortly after donald trump said that we got comments from the global times editorinchief tweeting that beijing would likely reject the deal because the agreement would endanger chinas National Security interests and dignity. You have been covering this roller coaster ride from start. Can you tell us what you think the likely outcome will be gearing in mind we are getting closer to november when we could have a new set of circumstances . And on the u. S. Side and the Chinese Government, both have Security Issues to address. This deal hinges from approval bite donald trump on the u. S. Side and the Chinese Government was Security Issues to address. Does that satisfy the u. S. The u. S. Electorate . Does this still work for america . Will this be headquartered in texas . A 5 billion fund for education can be to buy tax revenue from this new entity which, by the way, bytedance has backed away from, saying this is groundless rumors that we have committed to 5 billion. This was only an estimate based on projections over time, on how this tiktok level would grow as a business. What it be 53 owned by americans . Ward four five board seats be americans . With the ipo drawdown the chinese interest . There are lots of issues on the outside and, of course access to the security of the algorithms and source code. For the chinese it comes down to is this the National Security threat . At is this a loss of face . Engle Bloomberg Stephen covering the latest on tiktok and oracle. Next the Global Program to deploy coronavirus vaccines is growing but china is not taking part so far. This is bloomberg. Dozens of countries have signed onto the Global Vaccine Partnership known as covax, while the u. S. Has declined to join the group. China has been mom. Mum. Joining us on the line is government reporter colin murphy. This could have been seen as beijing trying to restore its image if it i joined the initiative. Why hasnt china yet signed on . Good morning. It is the surprised that they did not sign on, because they have been sending signals over the past couple of weeks to say that they supported the covax initiative. And the people involved in covax, including who, has said their commit occasions with beijing were relatively positive. But there is one hope in the fact that there is still time. Theyrganizers are saying are expecting another 30 countries to sign up in the coming days. There is the possibility that china might still continue to support this and sign up. But right now the official, issue last night ton is not there. China is not there. Haidi what would china potentially stand to gain from joining . There are a lot of benefits that would go chinas way. Like any other country that joins this multilateral effort, it acts as an insurance policy because we do not know exactly when and who is going to develop a vaccine and which vaccine is going to be successful so being part of this Global Initiative helps countries including china to hedge their bad but there scientificts such as and medical benefits that china could stand to gain so for covaxsponsored vaccine does become a billable they would probably, never countries to step up and play a big role does become available they would probably call on member countries to step up and play a big role in manufacturing. Being part of a Global Program would also help give who vaccineto attend led apart from this theres also the diplomacy when. By being part of a win. By being part of a Global Coalition china would send a message to say it is part of a global multilateral effort, it is doing its part to help the world to overcome the vaccine problem. This is especially true given that trump and the u. S. Administration of President Trump have said that he will not be part, the u. S. Will not be part of this initiative. Our bloombergs china government reporter, colum murphy beijing. Microsoft making its biggest ever, the purchase owner of the shirt with thousand of softworks, which could help create a netflix for gaming. The microsoft Vice President for gaming spoke with bloomberg technology. We do content as critical to our platform. We have game pass growing fast, 50 million subscribers. We have 15 million subscribers. We are going into preorder for consuls, we launched x cloud last week so people complaint games on a mobile phone. Content is foundational and with this move wed doubled the number of content creators inside xbox, which we think is a great move. Shery once inside xbox, ultimately will they then start making games for xbox and pc only and not playstation . Clearly our commitment is that xbox and pcm people playing on x cloud and game pass will get xanax games, the collection of bethesda studios will come to xbox next box game pass and that is a huge commission from us commitment from us. We will make a decision on a casebycase basis but this is a move to show the strong commitment to the xbox commitment that community that greg gaines will be coming. That great games will be coming. Shery you have 15 million subscribers, some gamers have been disappointed. How much of this is pull forward demand and what do the quarters ahead look like . We see gaming as a strong growth category and it has been for many years. 3 billion people play video games on the planet, half the connected world, nearly a 200 billion topline business. Both those numbers growing by double digits. Gaming is a secular trend in entertainment, people moving from passive entertainment to active entertainment. You see it, kids everywhere playing video games, minecraft, fortnite, a strong place for microsoft to make an investment with the transformations we are seeing in the business. Said, content is king so i have to ask about the tiktok deal, it is still playing out. How big a deal is it that microsoft lost the tiktok deal . We were pretty public about how that played out. I do not have anything to say without tiktok is working now. When i look at are growth aspirations in the consumer space, as microsoft, i think our investments in gaming and reaching communities everywhere is critical to longterm success with consumers. The Trump Administration is pushing u. S. Gaming companies on ties to tencent. That means fortnite and league of legends, hugely popular on xbox. What is microsofts position in this geopolitical tugofwar . What if trump starts tracking down on fortnite and league of legends . We have taken a longterm approach to gaming and we believe people should be able to play the games they want to play with the community they want to play with on the devices they want to plan. We work with global to play on. We work with Global Partners and that is a cornerstone of our strength, reaching 3 billion gamers. Meantime theres a battle makerbetween Fortnite Epic Games and apple and google. Xbox has its own situation with apples app store. To think apple and google are monopolies like epic says . We think gamers on general purpose computer devices should have access to game pass cloud streaming, that it should be available to everyone. We will work with the large mobile operators out there, apple, google, samsung and we are jnet today. I do think gamers should have and we are doing that today. I do think gamers should have choice. Shery coming up next, major banks in the hot seat over alleged suspicious transactions. We discuss it with that university of canberra professor. This is bloomberg. This is daybreak asia, first word headlines. Willk asia says there retain control of any business in the u. S. Seeming to contradicts President Trumps assertion it would be run by americans. Bytedance is contesting the presence claimed the u. S. Government will pocket 5 billion as part of the deal. Reports from beijing say china has accelerated a blacklist that could hit u. S. Tech companies. Sources say leaders are split over when or whether to pull the trigger. The dow says the highlevel debate says china is unsure how to respond to threats from washington and may wait until after the election. So far china has reacted in kind to u. S. Moves to avoid driving the relationship toward collapse. House democrats released a stopgap government funding bill that lacks support from the white house or Senate Republicans raising the threat of a federal shutdown at the end of the month. The draft would extend current spending through december 11 but does not include billion dollars in farm aid for the administration has been seeking. Both parties say they want to avoid a shutdown. An ecb president Christine Lagarde says there is still room to add stimulus and it can adapt its program if the eurozone economy needs more help. She says the Third Quarter was he a rebound although admits recovery from the coronavirus is an even and incomplete. Will see a rebound. Its 1. 5 trillion dollar bond buying to boast of the rebound and revive inflation. Global news 24 hours a day on air and at quicktake by bloomberg. Powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Hour intoare half an the trading session in korea and austria. Lets get to sophie and hong kong for another check of the markets. Have gones. Futures higher but asia stocks declines for a second day of losses led lower by korea. This morning the kospi lower by. 8 with automobile and gaming makers among the laggards in so seoul. Keeping nine on asia dollar bond spreads, we saw the average yield premium cap three to increase. From the rba deputy governor, his or marks regarding the economy sang the central bank is mulling policy options to support the australian economy, such as reducing the yield target or the tfs rate, possible policy options. This is speculation about what the central bank may pull out of the hat in the Fourth Quarter. Flipping the board to check in on how australian assets are faring, as we get these lines from the rba. The aussie dollar is under pressure by. 2 as we sealed continue to push lower. Below 25 basis points. When it comes to speculation as to what rba may do, as we digest these lines we have goldman saying the yield curve target would be lower in november company by a rate cut of 15 basis points, along with a qe target of 100 billion us join dollars. 100 billion australian dollars. Bna not expecting a rate cut. Again these lines in response to the rba mulling for the policy options. Haidi let speak with Central Banks, one top fed official police inflation official believes inflation will exceed targets. Saying the new approach to lifting prices will work as it begins to react less aggressively to the virus crisis. Economic andlobal policy editor that there is already enough fiscal stimulus to get the u. S. Economy through the recovery. He told our editor. We react less aggressively to shocks i think that will lead to higher inflation, and higher Inflation Expectations, and we will an epic it exceeding the target. We will end up exceeding the target. If there was ever a time when a gradient are in place. You have gigantic fiscal deficits, combined with a more relaxed central bank. And really rapid growth, off the charts rubber growth, so you probably will cash off the charts rapid growth so you probably will get inflation over the near term in the next year, so i do not think it will be as quiet sent as it was before the pandemic. You also said friday that you see, as many people do, this massive rebound in thirdquarter gdp. People are looking 20 25 , why you set another reason it is going to help get inflation on track to 2 . I want to ask you specifics about this. It does not look like theres going to be a stimulus package passed for the election, and hard to say when it will be passed after. What difference does that make if any to your forecast . I think original fiscal package passed in marchapril, several bills, the cares act in particular, that was calibrated to a bigger shock than the one that has actually developed. We are certainly in a pandemic. It is a big shock causing a lot of disruption, but not as big as what they were thinking at that time. So what we ended up doing is borrowing 10 14 of gdp. But if you look at current forecasts for this year, it looks like gdp or national income, Household Income, will only be down 3 to 4 . So you borrowed quite a bit to cover a whole which now does not look like it will be as big. So im hopeful that we still have enough in the pipeline, to push us through, get the growth going in the second half of the year here. That seems to be what is happening in the Third Quarter. And continue in the Fourth Quarter and the first part of next year, so i think we might be ok here. I dont think theres as much of an imperative about a new fiscal package as there might have or smiou know, in july, have seemed in august or july. Kathleen are you referring to the imperative for congress to do something . Maybe they do not feel as much . Or are you also saying that given all the things you just said about the economy and the stimulus already past, they beat is not as necessary as we thought . Many fed officials have said more stemless is needed. It puts the recovery at risk if you do not get it. What exactly are you saying here . I guess my point is what people were thinking was, that 2020, at the end of the year, you know, Household Income will be down 10 , a percent or 10 . More onrrowed 10 or International Markets to cover that whole but now it only looks like Household Incomes will be down 3 to 4 at the end of the year. And we still went out and borrowed 10 . So it seems like at least in some broad Macro Economic type of calculation, we have enough resources to cover this. Now, of course it is unevenly distributed. And there are many issues around exactly how it gets to the disrupted household, and that is very important. But as far as the total size, i think we video k, and we we may be ok and we may be able to sustain our recoveries through this. President louis fed James Bullard speaking to our Global Economics and polity editor Kathleen Hays. Leaked documents seem to show years of documents linked to money laundering, ponzi schemes and fraud have shaken the world angst. Hsbc slumping low the financial crisis low. Professor ofn banking and finance at the university of canberra. Great to have you with this. How much is this a problem with the banks themselves, just filing suspicious activity reports as if they were at out of free get out of jail free cards . And how much is it a problem of the system where authorities are not following up . It is a problem at both levels. At the level of the banks, as well as at the system level. So far, as far as the banks are concerned, as you would have seen in this case, they did file the suspicious activity report. But the thing is, that they are theng to sort of overload reports. , by filing and then it is left to the regulator to sift through the data, in order to determine if there is a criminality involved or not. And if they get caught, then the question of further action against them arises. In the meanwhile, they will try to make the profit. And this seems to suit everyone in the system. And that is the reason why you find hsbc has been a repeat offender. Shery what would be a remedy to this . Would you have to increase the fines toward banks to do their Due Diligence themselves instead of try to overwhelm authorities . There are two things here. Initially the antimoney laundering control was left to Law Enforcement, the police. Subsequently, the banks were brought into the picture. So they were outsourcing that function. The banks were like the sentinels. Now, here there is a conflict of interest. In the sense that the Law Enforcement with day that wealth, the sentinel will take care of this. And the sentinel thinks i have been outsourced to do this business, so why should it affect my profit. So there are two ways in which one can handle this. Course, at the origination itself. Which is in the domain of the Law Enforcement, in the demand and supply in the market. And the second is at the level of the banks. Now, currently there are no criminal penalties against the ceos or the board of directors of these big banks. There is no cost. Second, the fines imposed are only a fraction of the money laundered. If you can raise the fine by law, saying that if you laundered 2 billion, the find itself will be to be in dollars, billionre, or maybe 1. 5 or maybe 1. 5 times the money , so the costs can be made prohibitive. It is only then one can see some sort of a check in these activities. Professor, does internal stte assist internal suspicious activity reporting which takes place across several jurisdictions, does it just not work . Fishll internal specific specific activity reporting that happens within the bank. And between the bank and regulator. There is a time lag involved, number one. Number two, you need to have a Sophisticated Technology to sift through all the data. And then comped to a conclusion that yes, this is a criminal activity. And then pass it on to the bank or the Law Enforcement to act. Theres a time lag involved here. That also needs to be considered. Also there is sort of what we call in academia, a crying wolf theory. The thing is that, i get rid of my responsibility by filing the report, and then it is left to the antimoney laundering regulating to do their jobs. They are flooded with trillions of suspicious activity reports every day. Them it is going to be a massive, massive job. So now, the other interesting point at of all this is that now that all this data and files are in the Public Domain, does this potentially li bin the big boeing that just the big is this potentially leave the big banks vulnerable to a flood of lawsuits . What advantage of the data coming into the Public Domain is whistleblowing process some fear in the banks that it is no longer, the data is no lagarde within the confines of the Financial System or financial regulatory and the banks. Now it is going in the Public Domain. So that may serve as some kind of deterrent, no doubt. Professor, we appreciate your time with us, university of canberra professor sathye. Coming up the new chinese etf giving Retail Investors access to tech and financial. Coming up next. This is bloomberg. Foreign Exchange Traded funds tracking china star 50 index open tuesday expected to attract 3 billion. The etfs are the first to directly replicate the index. Joining us is our china markets team later. Good timing in terms of Market Conditions an interest in the sectors. Who will buy these etfs . Exactly. Investorsare aimed at , Retail Investors and Mainland China who currently have insufficient capital to buy stocks direct the on the starboard. The starboard is as your member stockch, hightech Index Trading venue launched in shanghai a year ago. Individuals there are required to have a minimum 500,000 yuan can trading accounts which is inaccessible for a lot of people. Investment thep echoes that a light to attract the index. To track the index. Momjust 1000 yuan investment, so minimum investment, so it makes it appealing to a broader pool of investors and is a way to attract more capital. Shery we are waiting for could become the worlds biggest ipo. There will be forced to buy shares. They will participate in the ipo, because the etf will track the star 50 index. Is the star 50 index, which composed of the 50 largest shares on the board. That index requires at least six months of trading history. Soy still have to wait. The listing is expected late october. It will be away before we do get ant groupon that index. Once it does get think until on the index,p and it most certainly well, will force the etf to buy the shares to upper could index. The subscription is open today, for the four funds. We would get a sense of whether the caps have been reached in the middle of the day, we could get a sense of whether demand has been higherthanexpected. If they suspend subscriptions. For theknow the aum funds at the end of the day if they raise the targeted amount and hours they will have to close subscriptions early on and will get a sense of demand midmorning we should know. Shery air china markets team later. Next, myanmar locks down its biggest city to contain a surge in coronavirus. Inspection ahead of the general elections. We have the latest. This is bloomberg. Myanmar has locked on most of yangon province, home to the countrys largest city to contain a record surge in Coronavirus Infections ahead of elections in november. From aet the latest reporter. Given the circumstances in bmr with the rising virus, what is the outlook for the election . It is up in the air. We have two dozen Political Parties calling for postponed election, scheduled for november 8, still a ways off. They have this new big outbreak to contain a get under control before then. The Ruling National League for Democracy Party still favors going ahead on this. The state councilor Aung San Suu Kyi says the outbreak could be contained. That is what theyre trying to do with this new stayathome order for monday that bars more than one member of a family from venturing out for shopping. Ed curbs travel from yangon except for essential work. Fit is are not allowed on the street except for prior approval. Vehicles must not carry more than two people. Theres a lot to contain the outbreak and they are trying to see what they can get under control before the scheduled election. Haidi how does myanmar compare with the rest of the region in terms of handling and spread of the virus . It does feel a bit like whackamole these days, where one country is doing well and another country pops up with a second or third wave. And we had the case of myanmar now. One that has been troubled lately as india. They have had promising news on Clinical Trials for a vaccine which perhaps can be rolled out toward year end, but that is an uphill battle and there has been a steep rise in cases of the past two months daily. Also troubling is indonesia which added 4000 cases monday, the highest oneday total, and hospitals are being overwhelmed there. The philippines being despite some of the strictest lockdowns, still battling a few thousand additional cases each day. Malaysia is also dealing with the steepening of the curve this month but they have had things fairly under control asia itt in southeast is good to be in Southeast Asia in singapore or things are a bit under control, after not break in the farmworker dorm community. Things have been getting worse in pockets of the region as in pockets of the world. Foreign worker dorm community in singapore. Also balancing the needs to get economies going as much as they can safely. Our senior asia economy reporter. Lets get you a check of the business flash headlines. Jd health on the hong kong stock exchange. The Online Health care unit of chinas number two ecommerce covenant hired bankamerica and ubs to work on the listing, aiming to raise a billion dollars. Raised and has been First Health Care sales in asia this year. Xiaomi is planning to reach out world india, antichinese sentiment while selling more mobile vans. The trucks will stop on specific routes. Sell tvs,s aim to security cameras and sunglasses along top josh alongside indias most popular phones and mobile devices. Dealer tiffany has succeeded in fast tracting lawsuit that lvmh is allowing on faulty label legal precepts. Lbmhs request of the case be delayed internet year and denied tiffanys request to the case decided before the original closing date november 24. The ruling puts pressure lbmh to justify dropping luxuries biggest ever deal. Makesla hinting it may batteries even if it ramps of orders from outside. At battery dayat and a Shareholder Meeting aimed at showcasing tassels lead in electric cars. Tesla maybe in line for a record quarter. Nikola slumped after its founder resigned as executive chairman. And analyst says his departure will be seen as a gut punch for lofty ambitions with milton having played a key role in driving omission. Ambition. The company will focus on expanding links with gm. Heres how futures are trading at the moment. We are seeing u. S. Futures reversed earlier declines to regain a quarter percent after u. S. Stocks in the regular session lost ground for a fourth session, the longest losing streak since february. Chinese futures closed half a percent higher after the shanghai composite fell in the previous session. The offshore yuan looking like this. The longest slide since july of the yuan against the dollar. Risk off sentiment around the world. In the next hour markets remained risk off amid continuing virus and stimulus concerns. We get the outlook Goldman Sachs. On an exclusive discussion plantbased food groups expansion. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. It is 9 00 a. M. In beijing and shanghai. Welcome to Bloomberg Markets china open. I am tom mackenzie. And i am david ingles. We are counting down to the open of trade in the chinese mainland and hong kong. Lets get to your top stories as we get underway today. China is pouring cold water on the tiktokoracle deal, saying bytedance would retain overall coro