Transcripts For BLOOMBERG Bloomberg Markets Asia 20240712

We have seen the g10 space benefiting from that, especially when it comes to the pound. There are brexit negotiations starting today in brussels. So far there is possibility of progress. It looks like we are in this seeing people are are saying this is the yen buying path of least resistance. We are looking at, when it comes to commodities, the gold futures. Right now. Silver and aluminum having a big comeback. You see brent crude hovering around 42 right now. One big interview to tell you about today. We are talking about market debuts in hong kong, gto express. Here is the bond market first. Not a lot of movement when it comes to the aussie 10 year yield. 77 basis points as people wind back the rate cuts. 3. 11 for the chinese 10 year still. This is what i was talking about. He is joining us for an exclusive interview at the bottom of this hour. A pretty stellar debut to start the week. Haslinda like you said, a lack of conviction. From get Market Analysis the asset strategist at j. P. Morgan asset management. Always good to have you with us. Jp morgan says three quarters of the correction is already done, but there is still so much uncertainty. How are you pricing that . We had the virus deaths exceeding one million now. I think in the next few weeks there are two key events. In is the potential rebound the pandemic in the u. S. And europe, even asia. The second one is the u. S. President ial elections and congressional elections. These are going to keep markets on its toes and i think we will see more volatility into the november election. As a result, we might see more risk aversion, stronger dollar, more volatility. Equity markets and traditional safe havens may get more swamped. Hedgeda how would you against all these uncertainties . Risk reward . Would you be putting more cash aside first . Think wet necessarily should be reducing risk exposure at this point because the next 12 months, we should enjoy a gradual economic rebound, especially if we break through in vaccine developments or new rapid tests. That could boost markets. In the near term, we should stay put. If we see corrections in the equity market, a lot of investors could use that opportunity to add to their equity exposure. The next few weeks, stay put, but if we get a correction, it is not necessarily a bad times. Yvonne you are so constructive on stocks. We have our question of the day we are asking our viewers for what assets are the best guide for moving forward. You cannot rely on dollaryen or treasury curves anymore. When are you watching out for for the next direction for stocks . One would be pandemic developments, as mentioned earlier. Second would be development of indicators. Also some of the macro numbers. Another important point will be whether government and Central Banks continue to provide support. I feel more confident about Central Banks providing ample stimulus to the economy. Government, we are starting to see some discussion about whether they should gradually reduce the amount of stimulus coming through the u. S. Our politics clearly Holding Things up . Facther economies, the that governments are running up huge deficits, that could add to that debate whether they should slowly pull back. That would be important in driving Investor Sentiment when it comes to equities. Yvonne you mentioned how the dollar could spike leading up to the election. Is this more about the dollar regaining its haven status, or a temporary squeeze where we need to see more stretch positionings unwind a bit more . I think it is both. You have had a good run for the u. S. Dollar. There may be some technical rebound, but if investors are feeling less comfortable with the pandemic, the political environment in the states, they may go back to the safe haven currency is like the dollar. Another thing to bear in mind is in march when we had a liquidity squeeze in the bond market, the dollar was a very important place for investors and corporate to maintain liquid. Liquidity needs running up to the election may be a factor in supporting the u. S. Dollar. Haslinda china has been an outperform or. Will that continue . Valuations still looking cheap there. Having said that, will china continue to provide the cushion for em . I think so. If you look at the pace of recovery, there are exports improving in the past few months. There are still some laggards breaking even, just back to the prepandemic level. There is room to accelerate. Things such as passenger flights, travel data, those are not making full recoveries. This week is going to be interesting to reflect on whether chinese consumers feel confident and comfortable traveling once more. If they are, we could see some of the lagging sectors in the equity market come back. That is a very interesting opportunity for china. In the longer run, you have more participation in the Chinese Markets, the fact we do have the chinese economy recovering way above the rest of the world. Marketggests chinas should not lag. Haslinda there is so much interest in chinese tech. How best to play chinese tech . Adrs are theps way to go. You have to have the portfolio to do that. Hangoverstill a lot of about the u. S. China relationship, especially when it comes to tech exports or a restriction on exports. We do see a lot of companies, not specifically in the tech center, but health care financials, education, they are using the tech platform to broaden their attachment area. That is an interesting opportunity in china. These are spread evenly across h shares and adr. It takes an active and diversified approach when we talk about the best way to play china tech going forward. The two top stories we have been watching in the corporate space, hsbc and ever grand. We saw a decent bounce back on the stock yesterday. We are seeing the opposite with hsbc erasing gains to trade. 66 . T like the good news has been priced in already. As well, a down day of 6. 3 on potential warnings of a default. We had the companies saying the financial situation is still looking strong and we have talked about the options evergrande has, raising money through an ipo, selling condos, or just refinancing. Investors still looking shaky on that stock. The zto express debut still looking pretty good. For the first word news, Karina Mitchell in new york. We start with a disturbing number. Global coronavirus deaths have passed the one million mark as countries continue to struggle to contain the pandemic almost 10 months after it emerged. A recent spike in europe are adding concerns that many more deaths may be on the way. There have been more than 33 million recorded cases globally thus far. Chinas imports of u. S. Goods in the first eight months of 2020 was less than a third of the total target set for the year in the phase one agreement. Beijing promised to spend an extra 2 billion this year and next but has managed barely 33 of the overall goal. Soybean imports were just under 4 billion for august, compared to 14 billion in 2017. Christine lagarde says policymakers are ready to deploy more stimulus weapons to aid the euro zone recovery. She told lawmakers the future remains uncertain with consumers cautious about spending and investment. She says the ecb stands ready to adjust its range of policy instruments as appropriate. The reserve bank of india is postponing this weeks scheduled policy meeting amid rising virus infections and a slowing economy. The Monetary Policy committee had been set to discuss its next move today and tomorrow. A new date has not yet been released. The Modi Government has been struggling with the deepest slowdown in decades, as well as rising tensions with china. Theirawei cfo has resumed fight against extradition to the u. S. , saying fraud links to possible american sanctions against iran are so flawed, they should be rick should be dismissed. He is accused of tricking hsbc into processing transactions that. Left it open to the sanctions she has been fighting predictions fighting extradition since november. Im Karina Mitchell. This is bloomberg. Haslinda still ahead, zto express made its debut in hong kong today. Ever exclusive interview with the cfo coming up later this hour. Dont miss that. Yvonne next, the latest on tiktok and wechat in the u. S. The Trump Administration has yet to prove they pose enough of a Security Risk to justify a ban. This is bloomberg. Yvonne the judge who blocked President Trumps ban on tiktok says the government overstepped its Legal Authority and failed to provide enough evidence the app itself is a threat to National Security. For the latest, lets bring in Stephen Engle. Tell us some of the biggest takeaways from these findings. Stephen perhaps the biggest take away is this ruling from the District Court judge was very similar to another one on september 19 by a San Francisco magistrate who ruled against the Trump Administration in favor of which was alsot, seeking april the mary injunction and got it. Carl nichols has revealed his justification for that decision we got yesterday on preventing the Trump Administration to ban tiktok as of two days ago. Sunday was that deadline. Administration did provide ample evidence, as to how they described it, of china as a potential National Security threat. These apps are not, according to these judges. Lets talk about tiktok, essentially saying the app itself is not a National Security threat. The kind of content on these ,pps, like videos and photos are not a National Security threat causelso provide or could irreparable harm to the business of tiktok. Hence we got that decision on sunday before the band came into effect, that he would not be upholding the ban and issued the preliminary injunction in favor of bytedance tiktok. Haslinda where do we go from here in this conversation about tiktok . Stephen yes, where do we go . If you are scoring at home, this is two victories for the chinese app makers and two strikes against the Trump Administration. It is not over yet because donald trump actually had two executive orders on tiktok. Foroffered a 90 day period the sale of the u. S. Assets of tiktok. Those 90 days commenced on august 14. That means on november 12, 44 days from now, is when that next an order thatan, the u. S. Assets of tiktok must be sold to a u. S. Buyer. That deal is starting to be structured with oracle and ball tok and walmart reported be taking a 20 stake. That does not satisfy donald trump as he wants to give the electorate the opinion ahead of the election on november 3, nine days before the deadline, that he is tough on china. A lot can happen until that election to see how this deal, whether it comes to fruition under the current framework were aware donald trump is going to get his wish, outright control of oracle by tiktok, which the chinese side dont want. Yvonne we are learning more details on china setting dates for the fiveyear plan. Given the tension with the u. S. , how critical will this next economic blueprint be . Stephen absolutely. These fiveyear plans are always critical because they lay out the benchmarks they want to achieve and the priorities of policy for the next five years. The next five years, given that xi jinping wants more domestic consumption, more domestic innovation with the likes of huawei and tiktok and wechat, ai in particular. If they are decoupling, if we are in a cold war with the United States we i mean china, i am not associating myself with china we would be looking at what the priorities will be and where the money is going. They will be laying that out, the general commission, some 200plus members of the communist party plus alternates will be coming up with a roadmap. Almost equally important is they decided and announced they are going to have a longerrange blueprint coming out as well up through 2035, which is interesting because we know two years ago xi jinping pushed through his changes to the constitution that allow the president to continue past his term, which expires in 2023. The fact they are having a second longer term planning blueprint makes some people believe he is planning to stay beyond the end of his term in 2023. , thenda still to come board will discuss a plan to take it private in what could be japans largest ever. We will look at the options, next. This is bloomberg. Yvonne we are approaching the lunch break in tokyo right now, with shares under pressure, lower by 1 5 . ,he corporate story in tokyo japanese wireless carrier docomo , the board is discussing a buyout offer from its parent. Mayei reporting that ntt take the unit private in japans largest ever tender offer as the new Prime Minister moves to reduce mobile fees and charges. Lets get to lisa in japan with the details. Tell us what we know so far about this deal. We know isatest local media reporting that ntt and docomo are going to have a press conference this afternoon where the offer to buy out docomo is likely to be announced. The news first came out late last night, reported by the nikkei without any lead up or speculation. Ntt already owns a little over two thirds of docomo and if the tender offer is agreed to, one number to focus on is what the premium would be when they announce it. This could shakeup to be one of the biggest offers in Japanese Corporate history. The nikkei was based on a standard premium usually done for tender offers. Based on the Closing Price of docomo yesterday, that would be worth about 38 billion. We will be focused on the number of the premium when the announcement comes. Yvonne what do you make of the timing . What is the background for the deal . Obvious would be the new Prime Minister in japan, who has just taken office. Evens been very focused before he was Prime Minister on getting mobile carriers to lower their fees and has made it a court issue for his administration. One government study showed data heavy users in tokyo were paying three times in monthly mobile bills compared to a similar user in paris. Another background is it followed the trend of Corporate Governance reform, pushing to unwind parentchild structures where you have a Parent Company and a subsidiary data that holds a stake in it. If this happens and docomo becomes a subsidiary of ntt, it would be kind of the mother of them all. Du joining us from tokyo with the latest on that deal. Lets get to the business flash headlines. Evergrande shares have been falling in hong kong after rising by 21 on monday. The property giant reassured investors about its finances. The worlds most indebted developer issued a statement saying its operations are stable and healthy. Evergrande has been exploring Funding Options to avoid a cash crunch. Analystsose as reiterated bullish prospects after an investor day that reinforced perceptions of the potential for growth. Bayer has an outperform rating, saying alibaba continues to see expansion opportunities, while jeffrey says buy due to user engagement. Alibabas investor event continues through wednesday. Haslinda taking a look at the market, asia consolidating despite the global rally. We know there are adjustments being made as we wrap up september. Currentlyac index flat at 170. Futures up by. 3 ahead out the first president ial debate. U. S. Stocks closed a rally on monday. We have the kospi up. 7 . Marketsn says the fx will get dangerous to year end. A pause in the dollar rally. The shortterm yuan funding remains tight. Look where we are in terms of stocks that we are tracking. Evergrande closing down by about lower,t now, trading extending a pullback as much as 20 on monday. Hsbc down about 2 . Yesterday financials surging about 9 . Next, our exclusive interview with zto. This is bloomberg. Haslinda it is 10 29 a. M. In hong kong and shanghai, 10 29 here in new york. I am Karina Mitchell. Your business flash headlines. House Speaker Nancy Pelosi says she hopes they can reach the trillion dollar gap between them to bolster the economy with republicans asking for to do in dollars in funding. President trump doesnt want to trillion. An 1. 5 the u. S. Is being awarded will not reach its potential unless society addresses gaps in economic if virginity. Cleveland fed president Loretta Mester says citizens dont have an equal chance, and the coronavirus has shown how vulnerable communities are adversely affected. She says unless action is taken to promote an inclusive economy and end systemic racism, the u. S. Will never achieve its goals. The e. U. Has said it will not abandon talks with the u. K. , even if the Boris Johnson government retains its plans to break the law. The e. U. Says it will continue to talk, but also renewed its threat to take legal action against the u. K. As the clock ticks down to in nodeal split. Hong kong has vowed to match for Chinas National Day on monday, rejecting an application for a rally across the city. Last year, more than one Million People marched against the governments exhibition legislation, which ultimately led to the bill being dropped. However, authorities have repeatedly rejected applications for protest, since imposing in you security law. Thus imposing a new sweeping security law. Global news, 24 hours a day, on air and quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Yvonne,over to you over to you. Yvonne taking a look at the markets right now, not a lot of conviction as you get closer to the president ial debate. You have china pmi numbers coming out tomorrow. Also, Chinese Markets will be shut starting thursday for the golden week holiday. We are basically sideways here when it comes to asia equities. At least seeing some recent this decent we are seeing some decent gains for the nasdaq. The dollar is paring back. Of course, as we get to the quarterand, rebalancing. Looks like we are unchanged for the u. S. Dollar. That is helping the likes of g10, the pound, for example, 125 . 4 128. 4. The korean won also seeing a decent bid. There is a lot of speculation about what has been going on with the dollar. There is a bit of a pause. Look at where the cdas the positioning. Re you are still seeing the speculators out there are the most short the u. S. Dollar in almost three years. This is quite a short squeeze for them. It will take some time to unwind some of these positions that perhaps of gotten a little bit stretched. The of a question about whether the dollar has regained that haven status as well. Huiere talking to titai from j. P. Morgan. You have the elections, the second wave of covid infections, that is going to spell dollar for the dollar, the euro and the pound. They are looking more at the yen. Yen longs hitting the record high last week. Lets get to our top story of day. The zto express enjoyed a stellar debut in hong kong shares are up about 9 in hong kong. It makes it the top of the table of ipos here in the city this year, followed by a secondary listing from jd. Com and young china. It could boost ztos trading liquidity and act as a hedge against the forced the listing forced i hedge sting. T the forced deli tell us, what is it important secondary listing at home . Why is it important to have a secondary listing at home . We cannot hear her, so we will try to reestablish her audio levels. Hat was huiping yan we will try to get to her as soon as possible. A lot to talk about when it comes to the logistics space in china writing on this wave of just ecommerce amid covid19. They have rebounded on the back of it. Huiping, occasionally . Huiping yes, i can. Yvonne tell us why it is important to have a secondary listing in hong kong. Huiping since 2016, we were listed in the New York Stock Exchange and we have been receiving support, understanding therecognition with Investment Community within north america and also globally. But i think with us listing in hong kong, hong kong being the sincet global ipo venue the past 10 years, six years out of the past 10 years, it has been the leading platform for raising ipo dollars. In fact, since 1993, it has raised 6 trillion hong kong it is a platform for Mainland Chinese Companies to receive a great support and recognition. So i think with the u. S. And zto storylisting, the will be better understood and also our value could be recognized on a much more global basis. Because it provides flexibility, greater access to a much Greater Investor base for the zto. For yvonne how do you plan to use the proceeds . You mentioned infrastructure and capacity development. Can you give us a little more color on what that entails . Huiping yes. I think since 2016, we have started to recognize ztos advantage in consolidating and access to the resources that we could integrate, so that looking at the greater opportunity within china not just in express delivery industry but in a greater span of the logistics truck load,luding coaching, in warehouse processing, plus shipping as well as many other adjacencies, we believe they are better positioned to get into a greater ecosphere. That is why we started to design and plan for investment for a multifunctional logistics capability so that we can maximize our resource and also the advantage that we already established in terms of infrastructure. So infrastructure is going to be the main use of proceeds and at the same time, we still believe the entire Network Stability is important. Our Network Partners will remain confident and remain loyal to the brand, so they start to invest. Some of the larger ones, they have reached certain levels, they need to expand their facility, their capability of serving. We have 50 million going toward 100 million volume each day. So the whole Network Needs to come together. What we do is leveraging our understanding of the nature of the business and also the substance of the business and providing financing for our Network Partners to support them. Then, of course, yielding our entire ecosystem, building it framework, we intend to use the proceeds for that. Haslinda this is a highly compacted space, not just from domestic players, but International Players as well. When you talk about your competitive advantage, what exactly is that . Huiping in the past 18 years since the forming of dust funding of zto since the founding of zto, we have been building our Operational Efficiency capabilities, yet the model i think is a different of he western model locally operating model because it is a network model. Ecommerce growth requires a rapid expansion. The Network Partner model afforded great flexibility and speed in reaching wider and deeper penetration and wider coverage. In that sense, we were able to grow in a rather rapid way. For us, to continue to expand and continue to grow the industry while it is still consolidating the leadership in the space from our culture, which is the shared success so the whole network is balanced, from our infrastructure, we have the largest self owned facility space, we have the largest fleet, with over 9000 highcapacity tracks included so these capacities are not built overnight. With those, we have the cost advantage, the scale advantage and leverage going into the future as markets continue to expand, continue to grow. The opportunity is there for us to leverage our existing capability with people, with financial resources, with hard assets. It is not a lightasset model. We are able to build upon the knowhow, the focus on our strategy to continue to grow scale, market share, quality of services, and maintaining a profitability. F competition is strong, but we think that longterm speaking, competition trend come from the the quality ofm service and Operational Efficiency, and that is what we have been focusing on and continue to focus on. Year in the future by 2022, we hope to regent east 25 of the market. With that, we will further expand our leadership compared to our peers and also some of our Model Companies that we are looking to pull and fill the gap. For example, our brand recognition, the coaching operation, together with our existing business should help us in further leverage our advantage. Haslinda we also know that the deal we know that zto is among a dozen Technology Companies working closely with alibaba. Have you received any guidance from alibaba . Huiping alibaba is a great partner in terms of supporting the entire Logistics Business in improving standard of services, improving efficiency. Alibabas logistics arm has taken on the mission to use its data and Technology Platform to support and to empower the logistics players so that it could elevate the entire chinese logistic market capability as well as efficiency. Or evene investment prior to the investment by alibaba in 2018, we have been working closely with alibaba, for example, in how we develop automation recognition, because y bill, this was something that alibaba initiated for the entire delivery industry. Lastmile operations, all these are specific including timedefinite products those are successful collaboration with alibaba. Yvonne you mentioned price competition with some Delivery Firms in china, but has been a big concern with investors. How is it weighing on emergent. How long do you expect the price war to last, and can continue to gain market share without lowering prices . Uiping yes i think the answer to the last part of your question is, definitely. We believe it when you have capacity and strong Operational Efficiency, volume will gravitate towards you as opposed to price. That is why we have accelerated and dialed up our intensity in growing our market share, expanding our leadership gap so that we are becoming the true leader and absolute leader in terms of the whole competition. Pricing is not longterm. , recently, the margin for entire logistics, specifically for the express delivery industry has declined, but this is the darkest before the dawn, because we continue to focus on building capacity. The way of warding off competition is indeed your capacity, your capability of taking it as much volume as possible without giving up volume of services. We think looking forward to her that of next year, perhaps, the price will start to stabilize and resume. If you consider the very low price already in express delivery industry with volume, with the Growth Prospects in tech, the future profitability will arrive and will arrive sooner than you think. Perhapsmargin boost his margin boost and stabilization is one thing. What are you doing on the cost side to try to mitigate some of these price pressures you are doing with . Huiping yes. The cost productivity in the past has been a consistently achieved by zto. We have a philosophy of investing the right amount of money at the right time, doing the right thing. We have been systematically matching our investment with the incoming volume. Expand, thetinue to labor dependency look at today to decline, we have automation, we have Greater Technology implementation so that it is efficient. Te and our fleet could be better integrated and matched up with the capacity of our Network Transit capability. Theas volume increases, network itself will continue to theve, to maximize objectivity and efficiency. We have roughly estimated in the next 35 years, with the already low cost per kilo, at around . 50, we will look towards another 25 or even 30 of decline in the per unit cost. If i can give you one set of our cost was two renminbi per kilo. In 2017, it was 1. 08 renminbi per kilo. In the past quarter, we have . 50. Ed so with london can today to expand, our capability and our service, definitive products, so on and so forth, will help us to improve our perunit cost efficiency. Haslinda huiping yan, thank you so much. More to come on the show. Keep it here with us. This is bloomberg. Haslinda chinese electric vehicle maker nio began deliveries of its new model last week, two months after he began taking preorders for the batterypowered suv. He spoke to the chairman and ceo, william li, at the beijing auto show and asked about demand for the Company Charges model. Levie in july anddemand august was Even Stronger than actual deliveries as we had a conservative sales estimate at the beginning of the year. Our supply chain partners were not ready for even higher production. We are working to solve this problem in the current quarter. We believe Production Capacity will have improved in some number. We will keep improved in september we will keep. Oosting capacity tom elon musk has talked about a 25,000 tesla. What do you know about these plans . That wouldmagine have to be manufactured in china given the labor cost in the supply chain . William undoubtedly, battery costs for the entire industry have been declining. We reached a gross margin of 10 in the Second Quarter and it will increase each coming quarter. I believe the overall battery cost increase will help to promote e. Vs. In the Chinese Market, the average price for our cars is more than 60,000, 50,000 higher than teslas average in china, so we have a lot of work to do in the market, and in the long term we will launch more cheaper products, but that is not our priority in a moment. Tom elon musk has talked about potentially making one Million Units in china. I think auto products arent only about cars, but more importantly, serving customers well. For families, a car is not a small expense like clothes, it is big spending, and closely related to safety. So we pay a lot of attention to quality. Haslinda that was the nio chairman and ceo speaking at the beijing auto show. The battle between apple and epic looks set to continue after a judge said the case is to be resolved by a jury. The latest details and their implications, next. This is bloomberg. Is bloomberg. Haslinda after a hearing in which lawyers for apple and epic went headtohead, a federal judge made an interesting statement, a jury trial might be a better option for resolving the case. Su keenan is following the case. Epic has sued both apple and google in the battle over its game fortnite. What does this Movement Mean . Su it means that a federal judge may pass this hot potato of an antitrust lawsuit to a jury. While the judges did in order that, she did say that a jury may be better equipped to evaluate the major issues in what has been shaping up to be a battle royale. Again, thes involve, phenomenon that is fortnite, epics videogame that has gone viral even before the pandemic and the lockdown created video escapism at a level we have never seen before. Epics game in many ways has a ready changed the industry. The appr key issue is store fees. Both apple and google have been criticized for fees that are seen as restrictive to gamers although apple and google say they have serious security concerns about what epic did. So apple removed epics fortnite name from the app store after epic activated a socalled hot fix, a backdoor, if you will, that lets players pay for itgame purchases directly to purchasesgame directly to epic and bypasses apple. Last month a judge pushback on apples request to a shortterm or immediate ruling called an injunction that would have forced apple to put fortnite back on its app store with the hot fix in place. The judge said epic could not argue it was harmed by apple because it knew it was breaking the rules when it smuggled the hot fix into the game. There you have it, a big contest. The judge will have a written ruling on the injunction must but again, suggesting they might seek a jury. Yvonne. Yvonne real quickly, epic already has google changing the app store. What are we hearing . Su alphabets google is now updating the Android Software for next year. That would make it easier for consumers to use other app stores that compete with its own. That would remove any claim or criticism that it is trying to be monopolistic. At the same time, if consumers dont use the Google Play Store app, it is making it crystalclear 10 Game Developers but it will be taking a cut of payments. P both google and apple take up to 30 commission on these transactions. Google is avoiding the claim of monopoly in its move, but, again, making it clear that it payments. Cut of that is why everyone in the gaming industry is closely watching this case. Back to you. Yvonne su keenan, lots of twists and turns in that story. Joining us from new york. Taking a look at markets, not a lot of action in this race today. In asia in particular, we are counting down to the first president ial debate. China pmi numbers are coming out. Then we have the big holiday in china as well. So you are seeing some decent gains in china. We are counting down to the india open as well. Marginal gains at best. U. S. Futures still in the green today. You dont want to miss our u. S. Debate coverage that starts tomorrow morning. Plenty more in the next hour. This is bloomberg. It is almost 11 00 a. M. I am haslinda amin. Welcome to Bloomberg Markets asia. Rishaad here are the stock stories. Covid19 fatalities surpassing one million but some Health Experts say the real death toll could be at least twice as many. High on china will be the agenda as President Trump and joe biden prepare for the first debate. Each will try and varnish is credentials his credentials. Rishaad the reserve bank of india criticized postponing the policy meeting. The move sparked questions about indias ability to revive its ailing economy. Haslinda in the markets, it is a mixed picture. A portfolio adjustment towards the end of the month. Some jitters as we head towards the president ial debate. Virus risks. We have deaths topping more than one million. The msci index flat, 170. Futures pointing to a higher open. U. S. Stocks posted the broadest rally, putting down stocks among those getting bought. 1183. Llar index at dollar short positions at a three year high. Nifty futures, pointing slightly higher. Rishaad. Theaad take a look at Stock Exchange of thailand, setting off the tuesday session. Nifty futures pointing to a slight move to the upside. Building on the gains we saw on monday. Steady at 31. 72. The bond market is very interesting in india currently. Bond traders worst fears may be realized if the Modi Government announces a further increase. It is 6 trillion rupees. 81. 5 billion. Have a look at some of the Precious Metals. It will continue its lurch lower. Is the do have currently Exchange Traded funds which have been cutting the amount of gold they have had in their holdings in the last couple of days, bringing net purchases to 27 point 4 million ounces. The thing is, they have been moving out of gold and silver on etfs and going into palladium of late. Lets discuss what is going on in the Precious Metals complex with our guest, a Precious Metals analyst with Standard Chartered bank. Indeed, what is going on . Give us the macro, broad overview. A number of risks that are not only skewed towards this week but coming in to the end of the year as well and these have impacted the precious mesh of Precious Metals differently. A second wave picking up. And concerns around the u. S. Elections. For gold in particular, it has been following rates very closely but over the past few weeks, that relationship has strengthened the dollar. As we have seen the dollar strengthening from the right to safety, gold prices have come under pressure. Most investors will view this as a buying opportunity. Its am and palladium, much more macro driven story. Auto sales again. Very different dynamics, but the big themes remain. Also around the u. S. Election. Justad we have a chart showing how etfs have been boosting their gold and Silver Holdings to alltime highs, coming up a bit in the last few days. Relationship or inverse relationship that exists between dollar and gold . That has kind of gone by the wayside of late, hasnt it . It comes and goes. It does. When we look at the etfs, much of the interest has been in strategic buying. Investor concerns over perhaps orad inflation risk rising confirmed over diversification and wanting to have a hedge against uncertainty. A lot of the buying we have seen in etfs, which has been tremendous, has been strategic buying. Very limited liquidation when we saw the selloff in gold prices the past week. It was mostly tactical investors that were equating. Over the next few weeks, we should keep an eye on the dollar relationship. The longer term relationship remains with real rates. Idea of just give us an your forecast, not just for gold, but silver. Perhaps some of the currencies you look at. What happens in the Precious Metals complex . Suki the balance of risk for gold lies to the upside and we are forecasting gold prices to average 2000 balance in the fourth quarter. Its concerns around the election or whether it is concerns around the shape of the economic recovery depending on concernswhether its over whether Interest Rates will remain low. This will keep the underlying investor interest strong in gold and continue to offset physical market weakness we have seen in china or india. For silver, its likely to benefit from the upside risks we have seen in gold. Etfsame macro drivers keep buying very strong as well. Silver has had to contend with supply losses due to lockdown measures we have seen globally and especially in south america which impacted silver. We think we can see silver prices averaging 28 per ounce in q4. Platinum and palladium, we think the risks are skewed to the upside. Here, the story is a little bit more nuanced. Platinum has moved closer to balance. It has been driven by etf flows. Palladium continues to be an market. Upplied we can consolidate the elevated levels we have seen recently. One about the impact of a vaccine . What about the impact of a vaccine . Could it put a stop to the gold valley . Yes, it might slow some of the strategic buying we have seen coming into gold. Lots of investors are buying gold for diversification purposes, on the much more longerterm horizon. The main rationale behind this is most of the interest we have seen in gold at the moment is coming through etfs and those etf holdings tend to be a little bit more resilient and sticky whereas tactical interests are expressed through futures positioning which is relatively light compared to where we were during the Global Financial crisis. Most investors are concerned that real rates remain negative and that remains a key reason why they might continue to have an exposure to gold. If you take a longerterm perspective, in this case, maybe three years to five years, perhaps, can the gold rally still be sustained, especially when you consider the pile of debt that governments and banks are looking at . Suki on a much more longerterm basis, you are looking to give gold the third leg higher. Prices are likely to remain negative. We think some of the safe haven buying will start to slow. As investment buying starts to slow, the physical market will become much more important. It is setting the floor for the gold market. Storynk the broader macro will remain intact but it comes down to the question of whether we start to see low inflation or inflation picking up. An gold to do well on inflation story, we need to see inflation above 3 but ideally above 5 . , precioussuki copper metals analyst with Standard Chartered bank. Thank you so much for staying up with us. First word news with Karina Mitchell in new york. Karina thank you. Global coronavirus and deaths have now passed and the one million mark as countries continue to struggle with the pandemic almost 10 months after it first emerged. A recent spike in europe and the Northern Hemisphere are adding concerns that anymore deaths may be on the way. There have been more than 33 million reported cases globally of covid19 so far. The e. U. Says it will not abandon brexit talks with the u. K. Even if the Boris Johnson government retains its plan to break international law. The two sides resume withdrawal talks despite the attempt to rewrite parts of the divorce bill already agreed. The e. U. Says it will continue to talk but also renewed its threats to take legal action against the u. K. To a nodeal split. In the u. S. May put more sanctions on iran to distance its economy from the outside world. Theces say at it may label center offlimits. Irans economy has been crushed by u. S. Sanctions. Moves would leave it isolated from the Global Financial system. Joe biden says he will return to the 2015 nuclear deal if you ins in november he wins november. 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. Haslinda. Ahead, still secures 75 million in new funding. The Domestic Travel industry booms during the pandemic. We speak exclusively to the founder and ceo later this hour. But next, the latest on rishaad but next, the latest on tiktok and wechat. This is bloomberg. Haslinda the church that blocked the judge who blocked President Trumps ban said he failed to provide enough evidence the tiny social media app was a threat to social security. Thats bring in Stephen Engle. What is the biggest take away from the Court Findings . Stephen a couple of things. As you said at the top, the judge ruled he is a federal yourict court judge who is, know, responding to this request for a Parliament Area injunction on that ban that was supposed to take place two days ago, but he ruled in favor of tiktok and bytedance and against the government because he says essentially the Trump Administration exceeded its authority under the Emergency Powers act, Emergency Powers law , so thats, you know, half the side of the equation. The other half is while the u. S. Government to adequately give that china isy potentially a National Security threat, specific claims on tiktok as an app were not warranted according to the judge. The app is not a security threat. The content in the app like videos and photos and the like, they are not a National Security threat. He also ruled that, essentially, it would be very detrimental. Such a ban would be detrimental to tiktok as a business. Under these main points, he decided to not allow the ban to happen on sunday. Dates. china has got of course, all these tensions in the u. S. Are likely to be influencing the next economic blueprint. No doubt there will be more of of an emphasis on dual circulation. Arehen the fiveyear plans very critical in china and how the government plans its outlays of funding and priorities for the next half decade and this one is perhaps even more critical given the backdrop of the u. S. China relationship i just mentioned and also xi jinpings push for domestic innovation, domestic consumption, and whether there is this decoupling between china and the United States or a tech cold war. Some might have used that terminology. There needs to be the assessment that there must be domestic innovation. Higher levels of Technology Like Artificial Intelligence and the likes. They will be a global leader. So this fiveyear plan will be looking for clues to that. We know through the news agency that the Central Committee will be gathering in china from october 26 to october 29 to lay out those blueprints. That has to be ratified at the National Peoples congress in march of next year. This fiveyear plan, from 2021 through 2025, he is indicating that leaders are going to Start Talking about longerterm plan as well through 2035. Rishaad Stephen Engle joining us for the latest on tiktok and also the next fiveyear plan in china. Teslas plan is to build a 25,000 car and its push into china are not worrying its biggest rivals on the mainland. Tesla is helping to accelerate the popularity of electric vehicles which benefits all the players. Obviously he sees strong growth ahead. The first half, clearly, is impacted by the pandemic, especially in the months of february and march. The second half will be a lot stronger than the first half in china. The goldened to season of auto sales in the of september, october, and november. We have a strong momentum. You prioritizing in terms of the Business Strategy post ipo . Brian we will continue our investment into our r d efforts. We expect to launch our next pilot and that is something that we are excited to watch. Areas ofvesting into china development. Those are things that are an Exciting Development to watch as well. Tom how much runway does that give you . Brian we have abundant capital for our Current Business plan. Funding, we can be a little bit more forward leaning. Our explorations of new technology and products or accelerating some of the product schedules that we have. It gives us a lot of flexibility. Rishaad the Company Brian become tom the Company Posted a loss. Do you expect that to narrow in the next six to 12 months . What is the timing for profitability . Brian for the net loss, obviously, it is driven by how much we are investing in the business. Provide forr me to the forecast. What we are focused on is the continued growth in delivery numbers as well as the continued growth margin in our products. Net losses will be narrowing. Tom would you look at some point to bringing battery production inhouse . Brian not something we are focused on at the moment. Its a very different business. Very capital intensive. Not something we expected to do ourselves. Tom elon musk wants to be producing essentially one million vehicles in the Chinese Market at some point. How would you characterize the competition now in the Chinese Market . Brian i always said that, you know, we are actually focused on really catalyzing conversion of the auto market. In that effort, we are partners with tesla. We make sure more and more consumers are attracted by smart electric vehicles and that is what we are offering and that is what tesla is offering as well. Our focus is much bigger. We are less than 5 of the market. I think the development as vehicleother electric players together. We are accelerating that change and conversion. Speaking toian gu Tom Mackenzie. Now, we have a headline out of japan. The nikkei reporting financing from japans three megabanks for a buyout. Shortterm loans from banks. We know that the board has been holding a meeting to discuss plans to turn its wireless carrier unit into a whollyowned subsidiary that may help Prime Minister suga push lower. The entity was trading up about 2 . Joe bidens policy on china will be in sharp focus at the first u. S. President ial debate. Insiders say he is prepared to be grilled. We will preview what to expect. This is bloomberg. Rishaad you are back with Bloomberg Markets asia. We have microsoft saying office 365 teams and other Online Services are experiencing interruptions. It is unclear how long it will take to fix the problems initially reported. It aggregates user reports of issues and suggests the outages lasting several hours. The disruption follows a similar incident last week. House lawmakers are planning legislation to reform aircraft manufacturing in the wake of the 737 max grounding. Measures released in washington will tighten the faas control over boeing and other companies and their ability to let employees sign off on plane designs. It will require an expert panel to review Safety Culture at boeing. Sides ofbacked on both the aisle for capitol hill. They filed for an ipo in the nasdaq with what it hopes will be a valuation of 8 billion. Morgan stanley, goldman sachs, bank of america, and citigroup, have all been tapped to help. Net revenue for the first half was almost 1. 5 billion against the net income figure for the same time period and a loss of 236 million the previous year. Lvmh is, suing tiffany over the dropping of a planned purchase. Lvmh says tiffany has mismanaged operations amid the coronavirus pandemic, justifying its withdrawal from a deal. The business has been devastated. The two sides have declined to sit down and discuss the issue. Lets recap the headlines out of japan. We have the nikkei reporting financings seeking from megabanks for a buyout. Entities seen seeking shortterm loans from banks. They have been reporting the board is holding a meeting to discuss plans to turn its wireless carrier unit into a subsidiary move that may help lowerent suga push tariffs. On a 30 premium to the Closing Price in tokyo, thats according to the nikkei. Entityporting the parent controls 66 of the wireless carriers. Its all but guaranteed to pass before it went to the launch rate. It was trading low by 3 . We are two minutes away five minutes away from the lunch break in china, having a look at what is going on overall for equities. It was looking like a bright start to the day. The hang seng off the lows and off the highs,. 3 down. The nikkei comes back down as well just to say that we are seeing weakness as well. We got that story as well, planning to make its mobile unit a subsidiary. There is a sliver of again. Lets take it out to china and have a look at what is happening there. Take a look at the bond market, just yields of 3. 11 . I want to tell you about new rules which have been vaguely cheer forprovide foreign investors. They expand the derivatives market. It also gives them the opportunity to repurchase bonds. They are going to engage in margin trading on the National Equities exchange in beijing. That is what is going on with the bond market. Also elsewhere, seeing gains in china. Of theainst the backdrop Economic Data which is showing the economy may be waning. We have worsening Business Confidence and lackluster home and car sales. Also some weaker Consumer Sentiment as well. Way up, nine point 3 . Thats the shares of the chinese Delivery Firm on its debut in hong kong. Haslinda it is almost 11 30 a. M. In the lion city in the middle of the trading day. We are keeping a watch on banks. The central bank is in top of lenders expanding the countrys debt moratorium Program Beyond december, according to some people. We will provide relief for borrowings. The effect on consumers as well as businesses. The banks so far in positive territory. Trading up by 1 . It is higher by. 5 . For now, lets get a first word headlines with Karina Mitchell in new york. House will white have to accept much more spending if there is to be any hope of the stimulus bill ahead of the election. She says she hopes they can bridge the trillion dollar gap to bolster the economy with democrats pushing for more than 2 trillion in new funding. President trump doesnt want to go further than 1. 5 trillion. The u. S. Is being warned it will not reach its potential unless society addresses gaps in economic opportunity. Says citizens dont have an equal chance and the coronavirus has shown how vulnerable commodities are adversely affected. Unless action is taken to promote an exclusive economy and end systemic racism, u. S. Will never sustain its goals. Chinas imports of u. S. Goods in the first eight month of this year are less than one third of the total target. Beijing promised to spend an extra 200 billion on goods and services this year and next has managed barely 33 of the overall goal. Soybean imports were just under 4 billion by august compared with 14 billion in 2017. President trumps pick for the vacant seat on the Supreme Court begins oneonone meetings on capitol hill. Amy Coney Barrett will meet Mitch Mcconnell ahead of the Judiciary Committee and two senior members of the panel that will consider domination. Confirmation of barrett would see the Supreme Court shift to the right for years to come. 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. Send it back to you, haslinda. Haslinda karina, lets take a look at the markets. Asia consolidating despite the global rally we saw yesterday and overnight in the u. S. , with the index currently in negative territory, down. 1 . Futures are pointing to a higher open. By nikkei 225 currently down. 3 as it comes back from break in the kospi. Amidst it all, we have a clause in the dollar rally set for its first monthly gain since march. One we are keeping a watch on. We are giving you the latest update on that. Financing from japans three megabanks for a buyout is seeking shortterm loans from those banks. It could be the largest offer to be announced and the buyout Profit Margins by the new Prime Minister, suga. At 1182. R that is the dollar index. Jp morgan coming up to say you have to brace for a dangerous session into the yearend. 68 26. Dollaryen may be heading towards 1110 after the president ial election. Taking a look at the commodity market. Gold at 1884, up by. 3 . Stockpiles seen declining. Aluminum at 1. 8 higher. Rishaad. Shambolic, that is how one economist described the rbis decision to defer the Interest Rate meeting. Suffering some of the deepest contractions in the world. Our reporterin is in mumbai. Is shambolic the right epithet . Does it lead to more uncertainty economically speaking . Yes, its quite right to describe it like that. It adds a layer of uncertainty to our economy. Its in the midst of a deep and historic contraction. We have to keep in mind the are b. I. And the npc have been bearing the bulk of the stimulus that has been provided to the economy so far. 115 basis points. Billions through cash injections. All of that in the absence of support from the government which has been conservative. In theas more confusion financial markets, which are already grappling with the prospect of double digit contraction in growth and high inflation apart from th record borrowings from the government. Haslinda why hasnt the government been able to appoint the three external members for the npc on time . Anirban thats a very good question. This is where the famed indian bureaucracy the government has three months to finalize the three names but it probably kept it for the last moment. The rpi, to its credit, has written to the government to allow members an extension. The rules do not allow that and the government went ahead and appointed the panel. The latesterstand division is the three members have been finalized but background and security checks are still outstanding which led to the delay of the appointment, hence the pushback in this weeks policy meeting, which, as somebody said, is a deferment. Economy and policy reporter anirban nag in mumbai. One of the biggest stories, cto rose in his zto hong kong debut. Shares higher by more than 9 . List of newgrowing york listed Chinese Companies with a trading foothold in hong kong. Earlier, we spoke exclusively with the cfo. With us listing in hong kong, hong kong being the Largest Global ipo venue since the past 10 years, six years out of the 10 years has been the leading platform for raising ipo dollars , in fact, since 1993. It has raised 6 trillion hong kong dollars. A platform its for Mainland Chinese Companies to receive great support and recognition. With the u. S. And hong kong will be the zto story better understood and value could be recognized on a much more global basis because it provides flexibility, greater access to a much Greater Investor base for zto. You raised 1. 3 billion in this secondary listing. How do you plan to use the proceeds . You mentioned infrastructure and capacity development. Can you give us a little more color on what that entails . We have since 2016, started to recognize ztos advantage in consolidating access to the resources that we could integrate so that, looking at the greater opportunity within china, not just in express delivery industry, but in a greater span of logistics subsegments, including in warehouse processing, plus the shipping as well as many other adjacencies, we believe we are better positioned to get into a greater ecofear. We started to plan for investment for multifunctional logistic capabilities to maximize our resource and the advantage we already established in terms of infrastructure. Infrastructure is going to be the main use. At the same time, we still believe the entire Network Stability is important. Of that, our Network Partners will remain confident to remain loyal to the brand. They start to invest. Some of the larger ones reach certain levels. They need to expand their facilities and capabilities of 50 million going towards 100 million volume each day. The whole Network Needs come together. What we do is leveraging our understanding of the nature of the business and the substance of the business and providing financing for our Network Partners to continue to support them. Ecosystem,r entire the dovetailed framework, we do intend to use the proceeds for that. Haslinda this is a highly competitive space, not just from a domestic players banks, but National Players as well. When you talk about your competitive advantage, what exactly is that . Huiping in the past 18 years since the forming the founding of cto, we have been building our scale capability Operational Efficiency capabilities. Differentodel is very from what the western model of vertically operated and owned model because it is the Network Partner model but because of the economic background, ecommerce growth requires rapid expansion. Afforded greatel flexibility and speed in reaching wider and deeper penetration and wider coverage so in that sense, we are able to grow in a rather rapid way. Rishaad zto cfo huiping yan joining us earlier. Coming up, taiwans Domestic Travel industry booms even as the pandemic hits global tourism. We will be speaking exclusively to the ceo of the startup that is benefiting from it. She is joining us from taipei, next. This is bloomberg. Haslinda a start up says the sales of domestic, on the island grew five times in recent months. To covid19dopted and shifted focus to local demand. The Company Raised 75 million u. S. Dollars in seed funding during global tourisms current virus driven slump. Joining us exclusively is the founder and coo. Your pivot to Domestic Travel has saved the day and given the sense of how you plan to build on your domestic strategy travel demand will never disappear. For most of the people, travel has become a lifestyle. Its just temporarily repressed. They embrace the change. Quickly to put our destinies to Domestic Travels. Strong rebound in some of our markets for hong kong. I think it is our investors vote of confidence. You raised 75 billion and you said you will use it to help suppliers digitize services , especially those in Southeast Asia. His Southeast Asia the Growth Market you are targeting . Our suppliers are all small and they lack technologies. I founded three companies before this one. Another two in taiwan. We have the technology. Launch why we decided to the rate sale system. It is a soft system to help our suppliers. Easily havey management for inventory. Also, they can even more stronger than before after covid. Which are your biggest markets . And what kind of growth are you anticipating . Give us some numbers. Ming ming ok. We are mainly focusing in the asian market. Right now, certainly, we have more than we will have in asia. They covered 550 cities. We use fundraising to further the Rating System to help the ecosystem in activities. We aim to be the number one in asia. Tell me, how is the travel business evolving . Has madempact International Travel go away for the time being. Will covid have accelerated the process and the trends you were seeing before . Ming ming of course, the travel will be different after covid. Is evenl transformation more important than before. That is why we launched the sales to launch the whole ecosystem. Have helpeds, we over 300 suppliers and served over 150,000 customers as well. Do you have a unique selling point . Ming ming sorry . Rishaad do you have a unique selling point . What sets you out from the crowd . What is different about your company than anyone else . Instead of worrying that, we are focusing on how can we provide Good Services to our customers . Digitalize,iers can services are not good. If they can do the digital transformation, providing Better Service to our customers, our customers can get Better Services, they will come back again and again. It will be sustainable. Rishaad great talking to you. Thank you so much. Ming ming chen, founder and ceo of kkday. We have had about three minutes of trading in india. Lets have a look at what is happening with those markets that we are expecting a slight uptick taking place. And really speaking, what we do see is the regional the regional markets here just coming off the boil. And yeah, perhaps given the index is a filler. Makingto app has been headlines. Tata cap is making headlines. App has been making headlines. Others are making headlines as well. We have that story as well as the coronavirus, which is again ravaging india. It has ravaged the economy and 70,589 coronavirus is calculated yesterday. Cases, 6. 1 5ed million. Five million. 15 million. This is bloomberg. Rishaad this is Bloomberg Markets. Polestar is an electric vehicle brand. In february, it unveiled the precept. There are no concrete plans for production. We spoke with the ceo at the beijing auto show and asked him about orders for the vehicle. Wase did not see that there people kind of holding back or saying, sorry. That was not the effect. People who were so committed to preorder the polestar, they got the car. Now, wesee now, i mean, slowly get into the phase where the reservations, we work them through. We will see over the course of the next month, its really about people who now test drive the car and come to realize how much that will now be according to our plans. Plan, you willhe be setting up a new factory in china. Can you flesh out at land for us . How many units will you be delivering . What is the timeframe . Thomas i will tell you about our plan. And figures will be different from the ones you might have asked for. The facts that are connected to this plan, that we would love to talk about very open about it. Building this plan, again, making this a dream. The production of the car of course puts a quite high burden. We can make the footprint lower. Energy,ns having Green Renewable Energy as the energy that gets into the plant, working from the very moment. They can get exactly the same on their side. Thats what is connected. That will not happen overnight, so obviously, building the factory, engineering this car, yes, this will not be happening in one or two years. It may be three or more. How do you frame the competition . It has a much bigger footprint. In some parts of the market, you go toetotoe with tesla. How do you frame that . Thomas i frame the competition that way. Competitiond of where two people try and achieve something, run faster than the other, whatever. Will that really push each other to extreme results . Good results . The healthy kind of push is important for the ev market. We have a big mission and that is to move from the ice tray age to the electric age. The more we do that in a convincing way for the customer has great products and great achievements. The better it will be for that goal. What is your priority in new markets . Thomas we are in three regions. Today, we have in europe, country by country, to extend. Is switzerland. Im sure we are adding a couple of countries more. Canada is there as well in the north american region. Asia, we definitely have plans now from china to move into other really easy ready countries. Local town very states. Might be as well for the bigger countries but we have to be very selective. As it is for ev markets, it is still a very it is not homogeneous around the region. You have to find spots where it makes sense. Haslinda polestar ceo Thomas Ingenlath beating to tom speaking to Tom Mackenzie at the auto show. Uber shares jumped on reports it is considering buying a ridehailing venture by daimler. We are told uber expressed interest in the program after the venture struggled to gain traction from investors amidst the coronavirus pandemic. Bmw and daimler merged their operations last year which includes ridehailing apps in france, greece, and romania. Chinas evergrande shares have been falling in hong kong after rising on monday after the property giant reassured investors about its finances. The worlds most indebted developer issued an Exchange Statement saying its operations are stable and healthy. Evergrande has been exploring a series of Funding Options to help it avoid a cash crunch. We have got this hong kong survey. The release of it coming out at the moment. Resultss announced the of this poll. It was hoped to resolve the debate on whether they should resign, democrats, as the governments decision to delay an election which has been onted to take place september 6. It should help resolve the debate over whether they should resign over that government decision to delay the pole. That was canceled down to the coronavirus and concerns about social distancing and the like. More radical supporters have been arguing that staying for an extended session did risk legitimizing what they see as the latest in a series of stats to weaken Democratic Institutions in the former british colonies. The majority of hong kong opposition lawmakers will serve out their term. If you will not. Just to tell you, talking about democracy, do not miss out coverage of the first u. S. President ial debates. That is kicking off wednesday morning at 8 30 a. M. Hong kong time. That is going to be tuesday evening in the u. S. That will be 8 30 p. M. Before we leave things, equity markets have taken a little bit of a downturn, but still, the hang seng going into lunch. 3 down. This is bloomberg. This is bloomberg daybreak middle east. The major developed and emerging economies struggle to contain the pandemic. Manus chinas top leaders plan to meet. Renewing speculation that president xi wants to stay in power. Sou