The outage cast further doubt on tokyos hopes of replacing hong kong as the equities leader in asia. Japans lost generation. We open a business week report on the people shut out of the employment market in their continuing to search for directions in middleage. Haidi lets take a look at how things are setting up in this fridays session. Of course, a whipsaw week when it comes to u. S. Markets. A lot of travel when it comes to asia. Tokyo to resume trading today. Sophie that is the case. That would be the focus on a case that has several markets closed for the midautumn festival. Japan very much and focus after the start of the fiscal second half was marred by nikkei futures in chicago edging slightly lower ahead of that potential session. The closing prices for wednesday will be the opening prices for thursday. Arkets are also watching for third extra budget in japan. We have jobless numbers for japan along with Australian Retail sales. Above 675, this after it edged towards 673 overnight. We are keeping an ion energy eye oners in it energy. Extending the drop below 40 a barrel, set for a second week of losses. The zi yan is edging towards 76, holding 40 gains. That could be read as riskoff ahead of the u. S. Elections. Implied vol. An shery lets go back to the top story. Major differences remaining between the white house and democrats over new stimulus release plans. The house is set to vote on the democrats 2. 2 trillion dollar proposal after nancy pelosi said the administrations proposal fell short. The speaker told bloomberg she will not take the path of least resistance simply to make a deal. We arere still alive and still talking. Im hopeful that we can reach an agreement. We are still fighting for more money. We think the administration is coming far too low for our heroes. I think we are close in terms of money. Yielding on that quite a bit. But close on that, except we have to see the language. We are joined by congressional reporter Emily Wilkins in washington. Of course, we have seen this vote being postponed. The vote that will lead to the house passing the proposal but really being shot down in the senate. What does the fact that we are expecting a vote tonight say about where the stimulus talks are going . Almost two different things. The message from the stimulus talks. She has spoken to minasian a number of times today Steven Mnuchin a number of times today. They are continuing these negotiations. When you look at the bill, we think about it a little bit for the terms for the election. A number of democrats in the house, very competitive races, going back to districts hurt by the coronavirus. Lawmakers want to be able to look their constituents in the eye and say we have gotten something done. Pelosi continues to negotiate with Steven Mnuchin. Nancy pelosi also shared with us her thoughts about the debate between joe biden and president trump. Lets take a listen. It was a sad occasion. People say, well, they should have had a button to turn the microphone off while the other person is speaking. Whatever it is, i think one and done. Debate commission is trying to make changes to the format to avoid a repeat of the first two. The president is not such a big fan of that. The president tweeted out why would i allow the Debate Commission to change the rules for the second answer debate when i won last time . Second answer debate when i won last time second and third debate when i won last time . Uphave the debate coming october 15. Biden says he still plans to participate. From past signaled he might not. We heard the press secretary saying he would be at the next debate. We heard trump is voice numerous concerns about the debate in the last several weeks. He suggested Chris Wallace would be unfair. He called for joe biden to take a drugs test. Trump is has kind of been calling out various issues that he sees with the debate. The next one is october 5 2015, and at this point, both candidates are still on to appear there. Wilkins coming to us from washington. Lets turn to Karina Mitchell in new york for the first word headlines. Karina good morning. Friday will bring the last u. S. Payroll reports before the election and the reading is expected to show a sharp deceleration in job gains and a slowing in the recovery pit analysts estimate employers added 875 thousand new positions in september which would be the smallest improvement in the nascent revival so far. New fed stimulus is not companies are shedding jobs and virus cases are climbing. Meanwhile, Coronavirus Infections continue to search with new york surge. Health officials in the u. K. Say london is at a Tipping Point while parents may close bars and restaurants. Increasingly, top social restrictions are being imposed on madrid while ireland has had its highest case level since its lockdown eased. S top 34 million with deaths above one million. Almost 20,000 of its workers have tested positive or are presumed positive for covid19. The figure is around half of what it had expected. Amazon says it tested employees regularly, whether they were showing symptoms or not, and says based on its findings, infections and the general population are probably much higher than current figures suggest. India attacks on women in are making National Headlines and triggering violent protests across the country. A 19yearold from the lowest social cast died in a new delhi hospital two weeks after she was allegedly gang raped by upper caste men from her village. Anger arrested in several areas after reports local police cremated her mutilated body without her family being present. 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. Still ahead, the weighting of tech in the emerging market benchmark is at a multiyear high. We will discuss the outlook for stocks in asia, next. The Tokyo Stock Exchange will resume trading friday. More on the unprecedented all day thursday halt ahead. This is bloomberg. Haidi we saw emerging markets seeing gains. Early advance amid skepticism over the new stimulus deal in washington. Traditional approaches are not the way to invest in e. M. Joining us now is the founder and cio of emq q that targets growth in emerging markets. Lets start off with the chart that looks at tech giants within the e. M. Complex. We know one of the main reasons we have seen this story of u. S. Market exceptionalism continue is because of the tech heavy weights. This is starting to pick up in terms of the narrative in emerging markets. Why then would you not want to have exposure to e. M. Tech . Particularly in asia . Well, i think you do want exposure to it, and frankly, i think it is the best exposure. Traditionalwith broad emerging markets is the legacy the is so heavy. The state owned banks and oil companies. They have not served investors very well. Its not their main function. If the companies that have really added a lot of value, built a lot of fundamental value with a bigger and bigger part of the emerging market index. This happened here in the u. S. As well. What is your preference in terms of getting more exposure to emerging markets, finding that yield in value, and bearing in mind you have a number of big houses becoming increasingly kind of riskaverse when it comes to the prospects for e. M. As we get closer to the election . Potentially, we could get sooner than expected fed tightening. Theres always a number of reasons to be worried about emerging markets. Hink the fundamental story the real story in emerging markets is that is what mckinsey calls the biggest Growth Opportunity in the history of capitalism is billions of people. They join the consumer class. Better food, clothing, appliances, automobiles, etc. Itt is a secular story and will not go away anytime soon. It makes the internet most of they haveumers never had access to two things before. They have not had computers. They are getting those quickly. Not really had Internet Access that way we have in the developed part of the world. People theirns of firstever computer, first ever Internet Access, and because the traditional consumption infrastructure, the bank accounts, televisions on the wall with channels, target stores, because those things were never really developed in emerging markets by definition, all of these new consumers leapfrogging what we think is traditional consumption and becoming consumers for almost everything. Shery we continue to see tech arets and in asia, they having homecoming ipo listings. Alibaba, jd. Com, we are going to get ant group at some point. What is that telling you about where these Chinese Markets are going from here . Kevin i think it has always made a lot of sense for these companies to want a hong kong chinesebecause most investors cannot access u. S. Markets. In thecourse, you layer political tensions and the threats that the u. S. Has made about delisting these companies that make even more sense. Think that is going to be shanghai and hong kong because of the political reasons. The last time they raised money ipo , eventually, the the things that not to the fact that banking is heavily regulated and i think they would prefer to have at least part of that be in shanghai. Shery before we let you go, tell us a little bit about what is happening in india as well. Kevin there is a lot happening in india and it is exciting stuff. India has the secondlargest economy in the world but they are way behind china in the form of internet adoption, in the form of smartphone penetration, and it is clearly the biggest opportunity in the world. Unfortunately, theres not a lot of Public Companies now. Theres a couple of pretty exciting companies that become public in the next 12 months. Clipart has historically been the ecommerce leader that walmart bought control of a couple years ago and walmart is talking about floating some of that company so that is a positive. The most exciting part of the story right now is what is going arm which has raised billions of dollars from facebook and google, from intel, and in a very ambitious, almost audacious approach to building a leadership position in the next billion consumers that will come out of india. Shery kevin carter, great to have your thoughts, emqq founder and cio. Bank of america has ceo, Brian Moynihan, says more fiscal stimulus is needed to help americas unemployed get back on their feet. He told bloomberg he is optimistic about prospects for the u. S. Recovery, pointing to strength in Consumer Spending. I talked a week or so ago and i said the Consumer Spending would continue to be strong, and it does. Today, you have more confirmation that what we see is your today, in 2020 spending, which is about 2. 2 trillion through september 27, by bank of america customers, is basically up from last year. Just think about that. With all we have gone through in society, with unemployment rising, with disturbances or people staying at home and on the back and forth, yeartodate, 20 is the same size as 19. Admittedly, it moves around. Admittedly, it had an interesting path. At the beginning of the year, january and february, you were up 9 , 10 to the first two months. Then you drop down. Then you actually fell to 3 , 4 , and then worked your way back up to flat cumulatively. That has been good. Your today, we are up a little bit. The idea is to keep pushing that along. At the end of the day, in the consumer driven economy, if consumers are spending, that will mean the economy will slowly work through and get back in shape and the unemployment will come down because people spend money and that creates jobs. It was the shutdown in the economy to a large degree. There were a lot of lands that were deferred. Where their mortgages or business loans, things like that . Do you think those will turn into doing currencies . Delinquencies . Plus billion 50 dollars, down to 14 billion paid 11 billion of those are in the mortgage arena just because of the nature, the credit card deferrals. 400 million in total deferrals. Need a to customers, you break, telus, and they did, and we went up to 2 million deferrals. We had 480,000 in a week at one point, and we are down to 2000 a week and its really a nonevent. Onl estate piece is based rules that were passed. The consumer is in good shape. We have a lot of people unemployed that were employed below the pandemic. We are adding jobs but not as fast as we were. You have Something Like 11 Million People unemployed. What does the u. S. Economy need to get fully back . Brian the economy the thing about have a big that restoration. Recovery might be too strong a word, to bring back an economy which is 95 the size it was before the crisis. Now, we have to close that 5 growth. The good news is that our economists moved in our last estimates up a little bit more in the near term and moved the breakeven point with the economy postal bit as big as economy precovid. That is good news because that means we are coming out on the other side. What do we need from a human aspect . We need to make sure we take care of the people affected by this virus who because of the virus cannot get back to work and that is a lot about the restaurants, a lot about the industries that were talked about before. I came on today in terms of airlines and cruise ships. Help the states get through this fiscal whole. Hole. The great nonprofits that provide great performance venues for us. In my mind, we ought to have stimulus aimed at helping them because at the end of the day, they have not crossed the river yet. There are a lot of industries that are back to normal sales levels and doing fine that we ought to take the care for resources we need to usher on behalf of the american tax payer. Unemployment support for those unemployed and support for those companies to continue to be able to be there on the other side of the break is. A little Sensitivity Analysis on getting the fiscal stimulus out of washington and your projections on when the economy comes back. Brian is that theon economy is kind of to the level so it would move it out. I would have to ask the experts what they think the difference is. They dont bake in a lot of fiscal stimulus right now because if you think about it, when they came out with the last assumptions, there is not as much baked in. It is encouraging to hear that they are talking. Hopefully, we will hear something positive here. It is not so dependent on now but it would be much faster recovery. It is the right human thing to do. Haidi haidi that was Brian Moynihan speaking to david westin. Coming up next, Coronavirus Infections continue to seu urge. We have the latest on the global pandemic, next. This is bloomberg. Haidi we are getting breaking news when it comes to the mining investmented to grade by moodys with the outlook cap stable. We have had of course some safety issues but positive developments, saying safety certificates have been issued for a number of these minds. We are mines. Raising them to Investment Grade with the outlook at stable. The brazilian iron ore giant does continue to see that recovery after shutdowns and disruptions and output due to the coronavirus this year. Shery moodys has downgraded the Credit Ratings for new york city and the state, warning the Pandemic Impact is among the most severe in the u. S. Cities under pressure as schools reopen and infections rates rise infection rates rise in hotspots. Michelle cortez, the winter has not even started and we are already seeing the infections worsening. Over 1300there are new infections in new york state reported yesterday. That is the highest level since may. New york city is really going to be taking the brunt of this again after getting through it in april after we open schools again. My 5 million kids are now back at in Person Learning and cases are going to rise. Back5 million kids are now at in Person Learning and cases are going to rise. Haidi Health Officials warning london is at a Tipping Point in the virus pandemic. Is this a situation where in major cities, we are starting to see potentially a return to more restrictive measures . Michelle absolutely. It is something everybody will have to be considering. New york city is going to be seeing this. London is saying they are at a Tipping Point and if things do not change, if people dont take protective measures, they are going to have to shut things down not just in the city of london, but in northern parts of the u. K. , they are also having problems. Restrictions are now being put in place where people are not allowed to be socializing with each other across households. They are shutting down some andgs like pubs and parties we are seeing increased rates in italy, in spain. Its absolutely coming back and people have to be making very conscious decisions about how they are interacting with others in order to keep the virus under control. Haidi michelle cortez. Lets get you a quick check of the latest business flash headlines this hour. The top copper mine cases renewed industrial upheaval as supervisors reject bhps final pay offer and move closer to strike action. 98 of Union Members are bound to walk out with bhp calling for mediation to avert that stoppage. Exxon fell by as much as 4 as it approached march lows after recording a third consecutive loss, increasing pressure on the 15 billion a year dividend which is the third highest on the s p 500. Exxon is forecast to have made a loss of . 30 a share. Is joining a wave of investors betting on the Reliance Retail ventures. Abu dhabis Sovereign Wealth Fund is putting money into the project and taking a 1. 4 date. Silver lake is increasing investment in Reliance Retail by 254 million. Giving it a holding of just over 2 . At retail unit is now valued 50 billion. Coming up next, back online, the Japan Exchange confirms it will resume trading later today. This is bloomberg. Haidi breaking news when it comes to the labor market situation in japan. Japans august jobless rate bang on estimates. We are looking at a 3 number as well. The job to applicant ratio coming in at one 04 against estimates of 105 there. Fairly much as expected as we get into the last trading day of the week, and of course, we are firmly watching the situation in japan after the technical fault rendered no trading for the Japan Exchange yesterday. Beyond looking at a resumption of trading today. Sophie, what are you watching . Sophie lets get a snapshot of how japanese markets are looking to fair this friday. Take a look at the range. A tar weakness very much trend. Jgb futures have settled higher here at ahead of the bojs first bond buying operation of october. Gains expected for jgbs after the solid 10 year option we saw on thursday and with an extra budget likely to be submitted to parliament in january as speculated in local media, that could ease concern over bond supply in japan. Ahead of the resumption of trading in tokyo, following thursdays outage, nikkei futures in singapore just opened little changed but slightly to the downside this morning. Clipping the board, the spotlight is on the supplier, fujitsu, and its arrowhead system. Should shares take a hit this morning, citi saying this would make it an opportunity to buy. They staying in japan, Tokyo Stock Exchange confirms it will restart trading after an unprecedented all day system fault. It is the exchanges worst ever outage. Im very sorry that our notification system prioritized spending issues. It led to the delay in information released. We are very sorry for this. Shery lets get the latest from the tokyo stocks reporter. What are we expecting to see today . Wednesday was supposed to be thursday was supposed to be the beginning of the second half of the fiscal year for japan, so we were expecting a little bit of a higher volume typically. So now that we are starting to trade again, what is the expectation . It was definitely a surprise for everyone. We are expecting some big swings today. A high volume as well. All the trains that were not able to be executed yesterday are expected to be flowing in today so we really have to be on the watch for how the volumes are going to pick up or which way stocks are going to trade tj but given blow to the confidence yesterday, shares are not looking good overall today but it is hard to say for sure which direction each stock is going to trade. Haidi we are hearing that there could be penalties or some sort of signs for this happening yesterday. Does questioning their ambitions to take over from hong kong as the trading hub . Min jeong right. That has been the idea of tokyo replacing hong kong as a trading hub, its been an idea thats been flowing around for a bit. Given what happened yesterday, some investors have said this is definitely a not Great Development of events and could deal a great blow of confidence. This is just so far, it has been a oneday event. We really have to watch carefully how they deal with the aftermath of yesterdays outage and how trading those today will definitely be on the watch closely by investors and all the market participants. Haidi apparently, auto trading has gone through without a hitch this morning, according to the tsc. Our stocks reporter, min jeong lee, in tokyo ahead of the open. We will take a look at Ruth Bader Ginsburgs legacy. What she meant to gender equality. Coming up later on daybreak asia, speaking exclusively with the Philippines Central Bank governor after he was selected to keep rates on hold. This is bloomberg. Karina you are watching daybreak asia. I am Karina Mitchell with the first word headlines. Democratic leaders in washington say there are major differences in talks on a new stimulus relief plan with the latest white house proposal falling short. Nancy pelosi tells bloomberg she will not take the path of least resistance simply to make a deal and that talks will go on. Both sides are under pressure to strike an accord as more Companies Announce job cuts while calling for more aid. We are still alive and still talking and i am hopeful that we can reach an agreement. We are still fighting for more money. We think the administration is coming in far too low for our heroes. For the virus, we are close in terms of money. Yielding on that quite a bit. We have to see the language. Coronavirus infections continue to surge. Sayth officials in the u. K. It is at a Tipping Point. Paris may close bars and restaurants. Top social restrictions are being imposed on madrid. Ireland has its highest case levels. Local cases top 34 million with deaths above one million. Authorities in hong kong are talking of stability after thousands of protesters were arrested on chinas national day. The police are checking id and cracking down on any attempt to demonstrate. Crowds were sparse and a far ago. From a year calm hasm says returned to hong kong. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Shery right. Groups opposing Amy Coney Barretts confirmation to the Supreme Court antiabortion advertisement with her name on it. It contends the right to life gains at fertilization. At a time when womens rights are in focus and under pressure, thats look back at the legacy of Ruth Bader Ginsburg and what she meant to the gender equality movement. For todays bloomberg quality segment. The director of the aclus womens rights project, a program that was founded by Justice Ginsburg. Its great to have you on. Legacy thatwith the Justice Ginsburg has left in your organization. Its impossible to overstate the ginsberg legacy within the aclu or outside of it. When she founded the aclu in 1972, the Supreme Court had only once found a lot to be unconstitutional in a case based on sex. You have to understand that when she set out on this project, she was facing a court full of nine men who thought nothing of upholding laws that barred women from serving on juries and said women could not work behind the bar unless her father or brother owned the establishment. That is the world she inhabited in 1972 when she cofounded the womens rights project and over her eight years as an advocate, she systematically struck down laws that is terminated on the basis of sex, also representing men. One of her favorite things to do is to help understand sex administration does not only hurt women, it hurts all of us. They are experiencing fully not only the family life but also the joys of raising children and also allowing women to step out into other roles outside of the home. Shery we saw the fight being taken to the government and those changes being implemented there. What are we seeing in terms of the private sector . Have we seen enough progress on that side . Rin not at all. One of the things this pandemic has highlighted is that even though the laws have largely been struck down, we are seeing the private sector slow to catch up and in the pandemic, women are among the first to be promoted or laid off, particularly black women, more likely to work in positions thought to be essential. We have seen mothers of schoolaged children really fall out of the workforce faster, to regain their jobs. These are setbacks that will last an entire generation, something i dont Justice Ginsburg would have hated to see. Haidi we have seen this recession not just in the u. S. , but here in australia, and other economies, being referred to as the pink recession. How much focus policy wise and for the Supreme Court needs to be taken in terms of writing the imbalance we have seen, the Economic Impact on women in this pandemic . Rin one of the things the pandemic has made plain is the lack of child care is not an individual problem or woman problem. Its a social problem, economic problem. This moment has never made it clearer that we need Real Solutions for real families had we need universal childcare, paid sick leave, paid family leave, all things justice and spirit fought on behalf of in the 1970s. Its a shame to realize how little progress we have made. One of the things i keep reading on social media is that with president trumps appointee to the Supreme Court to replace Justice Ginsburg, this is potentially a nominee that could close a lot of the doors that Justice Ginsburg opened for women. What are your views on that . Rin we at the aclu are urging the senate not to vote on any nomination until after the inauguration. It is a matter of fairness. Years ago, Senate Republicans said it was improper to fill a seat during an election year. Whats good for the goose is good for the gander. There is not sufficient time for the senate to fulfill its computational duty constitutional duty. Ruth Bader Ginsburg so often was the necessary fifth vote to affirm the rights of individual people to access abortion care, to access any kind of health care. The right to vote, the right to be free from discrimination. In all of these places, without her vote, the balance of power would tip. The American People deserve to be heard on that question. In terms of the aclus shery legalizing gay marriage nationwide. What issues are at stake right now if we see the Supreme Court turning more conservative . Rin we know that roe v. Wade is in jeopardy although i think it is worth noting that even with roe v. Wade on the books, we have seen the court and state legislature systematically chip away at the ability to access abortion care in a way that makes roe far from a reality for many women. We see the future of the Affordable Care act on the table. Religious exemption. People who seek the right to discriminate against people because they are lgbtq, because of their race, religion, sex. All of these questions will be before the courts in the coming months and the change of Ruth Bader Ginsburgs seat will make the difference. Shery if we get another four years of the trump administration, what is your top policy priority . Rin we are fighting hard to try and block massive widescale evictions that we know are going to come as a result of the covid19 pandemic, a problem many people dont think of as a gendered issue. Black women are twice as likely to be evicted as white renters and that could have tremendous effects on the ability to hold a job. Trying to block landlords from moving forward with evictions during this Public Health crisis because we know that it will have a cascading effect on women and their ability to thrive. Haidi really appreciate your time with us. Rin tabacco mar, director of the project,mens rights cofounded by the late justice Ruth Bader Ginsburg. Japans lost generation. How a hiring slowdown is still having an impact on the countrys labor force. This is bloomberg. A quick check of the latest business flash headlines. Bank of america says it is standing by. It pledged to avoid jobs cuts. Brian moynihan told bloomberg the bank has said theres been no layoffs this year and that remains the case. Goldman sachs, j. P. Morgan, and wells fargo, have resumed lowering headcounts. Moynihan says he has made a pledge and he will be sticking to it. We will keep letting attrition we will work the headcount into what we need. We are staff a little higher because frankly, for the safety of the teammates that are highrisk risk rather to highrisk relative to the covid virus, we had to move them. It took us a while to reapply. We had to hire new people to replace them. We will work it back down. We will stick by that. The recent settlement between the u. S. And Deutsche Bank for violating reporting will be personal for the ceo. It is now required to give an annual guarantee for the terms of the settlement. The constraints will also apply to any future Deutsche Bank ceo. Former citigroup ceo says the coronavirus pandemic has forced companies to rethink their Business Model and focus more on resilience and continuity. He spoke to bloomberg at the year ahead revisited Virtual Conference about how the virus has changed wall street. One of the things we have seen here, unfortunately in this pandemic, is our second stress test in the first two decades of the 21st century. The stance of reality not only with bankers and banking, but also every other business. What does it take to run a business that can have Business Continuity . In many ways, it is guiding people. They are thinking about Business Models and should those Business Models be more resilient . We have focused so hard on efficiency, how do we think about resilience . And if there is that lesson, it is an important lesson for all businesses including banking and there are aspects of that that banks are thinking about. Resilience, to some extent, does amehow use digitization as concept. Its about data structures, having enough information, analytics, talking about what is happening with customers, where things are going. Its about connectivity, making sure your customers are connected correctly. It is about making sure you think about your engineering correctly. Its cloud, etc. We have demonstrated, by the way, that people can work from home. That is an opportunity. Its an opportunity not only because of that that they can work from home, but imagine how it opens up access to town space, 7. 5 billion people . You can use them around the world, think about using gig economy workers. Some of that is going into thinking by a lot of the financial institutions. They are thinking about how these can become endemic to the Business Model going forward. The teamcoming back to i started with, we are doing all of that still within a 20thcentury architecture of finance. Modernizingentially a physical banking based model. The big thing i think that is changing, much more so with the regulators, central bankers, are there other digitally native ways of running banking and doing banking . There are plenty of examples around the world today of that kind of approach being implemented in bits and pieces. Some larger and some smaller. But that particular conversation taking on a prominent position, i think, is really terrific for where we might go going forward. Home is the reality. For so many people. Thatave heard ceos say 80, 85, 95 of their employees are working from home. J. P. Morgan and Goldman Sachs are among the Financial Firms trying to repopulate their buildings, and they have been criticized for ordering traders back to the office. What do you think . Was that a mistake . Vikram i think all of these decisions are based on context, as you know. But the fact is that when i was on a trading floor, you know, that was a different time. That was a different system. To, i enjoyed the ability transfer information instantaneously to somebody sitting next to you. It did not make sense at this point. Thats why you have fits on trading floors as well. Comes down to the nature of the business and the nature of the task at hand. Way throughork our understanding that. I think there is a broader question. The broader question is you and i have known each other for a while, and you know, i kind of feel that i sort of know you. One of the benefits of proximity is you get to know people. You build cultures. You build sort of a way of thinking. Its on the basis of that that you can work from home or you can work remotely. These are very complicated issues that have all to be put together. The reality is here. A lot of the tasks you needed to do at the office, you can do from home. You can tap into a 7. 5 billion person talent base, you can work gig economys. That is going to have an impact. Human nature is such that they do like to congregate in many ways but we are going to have to just watch this and see how it evolves. Haidi that was the former citigroup ceo speaking to erik schatzker. As japan struggles with the coronavirus pandemic and a new recession, it is still battling the fallout from an earlier downturn. A hiring slowdown around the turn of the century. Many graduates who missed out on corporate jobs back then are still unemployed and living with their aging parents. We take an indepth look at this in the new issue of businessweek. He joins us now from tokyo. Tell us how you became interested in this story. What are some of the stores you heard from people that you met . Thank you for having me. Part of the reason i would say is personal. I have been knowing and hearing a lot about these isolated people. There was a crime in 2019 that living with relatives for a long time. It got me thinking about who these people were. I hit the street. I met, one by one, and their supporting group for these people. People really tend to blind themselves. Hopes andh their ambitions being compromised by greater forces, so its very dedicated but i am glad i did meet these people. Shery how widespread is this problem and what is being done to tackle this issue . Is aaki i would say this major, major program. I dont think the government has grasped the entire scope of this issue. We as a society, as a whole, are price of the structural issue years ago. But government is now focusing on helping these people, which is a good start. My reporting showed me how complicated a solution can pric. It takes multiple players, not just government, but subsidies, and also private organizations. Family members. Everybody else need to be involved to help these people overcome a war of isolation and get connected with their society. A franklys is depressing story. Was there any sense of hope you got speaking to some of those people that you spoke to . Towas it really just doomed be a lost generation . Yoshiaki i dont hide the fact that getting to know these people is just heartbreaking, as you mentioned. It made me wonder why these people have been left behind for such a long time. It made me wonder if its too late. I cannot say im entirely optimistic, but i do say i found a glimmer of hope. People demonstrated, and the amount of support they have shown for these people. So i hope there is time left to change the course of this generation, my generation. Shery super quickly, we have this pandemic going on, and of course, these japanese people need to get really good jobs while they are graduating college, right . Can we see another lost generation because of this recession . Yoshiaki possibly, because we are seeing the indicators are coming down because of the pandemic, so theres concern, you know, that this is happening again. One of my sources told me facetoface this is another employment ice age. So yes, there is that concern. Shery thank you. Yoshiaki nohara on the line from tokyo. You can read his article about japans lost generation in the latest issue of bloomberg businessweek. Check it out. Plus, we are looking at similar challenges now facing millennial graduates this weekend on bloomberg television. Generation interrupted examines the catastrophic impact of the pandemic and recession on people now aged 16 to 24. That is in hong kong. Coming up, we have the markets open. We will be watching japan. 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. Shery welcome. Ages ages major markets have just opened. They are back in business. The outage caused further doubt on tokyo replacing hong kong as the equity leader in asia. Talks drag on in washington. Nancy pelosi tells bloomberg she will not accept just any deal as the houseboats on its 2. 2 trillion proposal. The Philippine Central Bank has been doing most of the heavy lifting as manila struggles with the coronavirus. We are joined exclusively this hour. Shery lets get straight to the market action. Korea still away on holiday. But japan resuming trading. We are waiting to see what trading volumes may be with japanese stocks. We will be checking on that. We are seeing gains in the nikkei. You have these groups helping lift benchmarks at the start of cash trade. The yen is trading study this morning. We digest the latest job numbers from japan. The Unemployment Rate at a three year high. Concerns may be delayed as we get speculation that they may submit to parliament a third extra budget. Lets check out the open in australia. The clock changes this weekend. 2 10 of ading off by percent. Rebound onminingled thursday. We are keeping an eye on chilean copper operations. The aussie and kiwi dollars are trading fairly steady. They could be set for the best month. Qe yields and aussie yields are ahead of the update on next weeks bond issuance in australia. In positiveld both territory. Switching up the board is weighing on these concerns over consumption recovery. New york crude staying below 40 a barrel. That is our second weekly decline. Just slightly higher this morning. I want to highlight the offshore yuan. His trading activity daytoday even with. That may suggest there is broader momentum toward more gains. Our guest joins us now. Is already this priced in some kind of stimulus deal as we wait for backandforth in washington . Really hard to say. A lot of the different people i was speaking to, you have a bit of a different ratio. My view is that is tactical. Haidi you think it will be a blue sweep . That is definitely not the house view. Youre going to get me in trouble. In 2016, it was not so much trump winning. It was hillary losing. We have a lot of different factors. It is not going to be close. Had does not change that we 60 million plus that voted for him. There will still be tens of millions of people who vote for him. There is a reason they are doing that that has to be addressed. Be asdont think it will evenly keeled. You can imagine if you are a democrat, that is what you are dealing in 26 in. Want to rest on your laurels. House breaking news, the has passed the democrats 2. 2 trillion relief package bill. This is the one that republicans are rejecting area does not have a chance of the republicancontrolled senate. But still democrats have gone ahead and passed it. It includes 600 a week in additional unemployment insurance. Billion for one year of local and State Government assistance. This is a highly contentious part of the bill. We also have new aid for airlines, restaurants, small businesses. This is something republicans and democrats want. At the end of the day, the fact remains that pelosi and nguyen to reachn have failed a compromise. So the house went ahead and passed this. It will get shut down in the senate. News, president hicks hasd hope tested positive for coronavirus. Right now we are hearing she has tested positive for the coronavirus infection. , a new wave talks of infections, lets go back to our guest. There is no doubt we are seeing some demand out there. The japanese yen just had the best quarter in a year or so. Where you seeing it now as we had to the president ial election . We continue to see these Coronavirus Infections rising. You just brought up one of my favorite topics at the moment. I have a love affair with the yen. , the godzilla of japan exiting, as signal that. By the end of next year we will move from this to a lower range. Highuld be sub 100 two 90s for the end of the year. The beauty of being short dollaryen is it is a nice heads. We see that with the back drop of this. We will be in this for quite a while longer. We have another index rallying. About 40 this year. You have to take a step back and look at where we went to to get the context. We went from a bank of japan Balance Sheet to around a gdp balance. The bang for your buck has disappeared. Do . Else are they going to japan has been changing a lot. More corporate governments governance. They are sitting on a lot of cash. They have some bright spots. I would not be the first one to tell you. Shery great to have your thoughts. Now, lets turn to Karina Mitchell for the first word headlines. Karina Coronavirus Infections continue to search, with new york state reporting the most cases since may. Officials in the u. K. Say london is at a Tipping Point paris made getting close bars and restaurants. Restrictions are being imposed in madrid, while ireland has its highest case levels. Global case is now top 34 million. Thats climbing above one million. The European Union announced legal action against the u. K. Over its plan to break the terms of the brexit withdrawal bill. The Commission President said they notified london of the move. They say it is a violation of the good faith in the original agreement. The action camino lawsuit at the European Court of justice did sexual attacks on women in india are making National Headlines and triggering violent protests across the country. A 19yearold from the lowest social cast died in a hospital two weeks after she was allegedly gang raped. Anger abrupt in several areas. Police cremated her humiliated body without her consent. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Karina Mitchell, this is bloomberg. Ahead, we have an exclusive interview with the lapine central banker. This is bloomberg. Shery japanese markets are back online after that worst ever outage for the japanese Stock Exchange. They are coming off prices on wednesday when it dropped about 2 . We expect more volatility. We could see some traits being queued up. We are seeing above average trading. Stocks. For japanese one billion shares for the nikkei, a little bit of above average. The big news today has been the passing of that 2. 2 trillion dollar proposal by the democrats when it comes to that stimulus package. There have been no breakthrough negotiations. Know the democraticcontrolled house has approved this package. Is of course, the senate controlled by republicans. What was the reasoning behind carrying this out . This is for nancy pelosi to give some of her vulnerable democrats think the government and pain on. The senate do something similar for their vulnerable republicans. Wanted them to say, House Democrats are doing something, we are trying to get this passed. But the republicans are just not picking it up. This is political gamesmanship we are seeing played on both sides. There still are talks happening with pelosi and mnuchin. There will be no deal announced tonight. Is possible something could happen tomorrow. But lawmakers go home. There will be momentum going forward. How much additional pressure is there to get something done . We have heard so many different american companies. That certainly does help the needle. All of the benefits of run out. People were joining the unemployment rolls. It creates a perfect storm. Themselvess see winning the white house . Maybe they would a couple of weeks once they have all of team on board. Shery speaking to bloomberg ahead of the houseboat, nancy they would she knew face resistance just to get to a deal. We do have some areas of disagreement. Be talking again later today. We are still talking. We hope we can reach an agreement. We have concern for police and fire and health care workers. We are close in terms of money. We had to see the language. One of the differences is how we put money in peoples pockets. Act, theres republicans put money in. Smallere benefiting a amount of people. The wealthiest in our country. We had 149 billion in this legislation. It is for poorer families. We are the reverse. Down to 54. In the interest of finding common ground. We have issues that relate to the election. That is progress. This is documented to be what is needed. It seems like there is a fair amount of ground to cover. Every day that goes by, we see one company or another announcing layoffs. Is that putting pressure on either side . You would help it would put pressure on them. Monthsths and months and it was about testing and testing. Theknow the record in history of that. Of we have a big pillar testing, tracing, treatment. To make sure this gets done. It is the way to crush the virus so we can open our economy more broadly. And our schools more safely. That is the heart of the matter. Haidi House Speaker nancy pelosi speaking exclusively to us. One thing they can agree on is more is needed to support the economy. What are we expecting on those key numbers . Are expected to look a bit better. The problem is maybe the recovery is slowing down. Failure to get a stimulus plan is casting a bit of a shadow. I would say a rather dark shadow over what we see ahead. Yes things are starting to look normal. Seeing reopening sidewalk restaurants. A lot of people still need jobs. This is for a gain. There is a large range. This was happening when the lockdowns were just taking hold. Stte now things are receding again. The Unemployment Rate peaked at 13 . What people are saying is those are 600 week stimulus checks that have dried up. They have not been renewed. Shery we have already seen announcements of layoffs this week, whether it is walt disney or american airlines. What is the outlook for the economy . Those layoffs are written large. You go back to the stimulus plan. They have run out. That is why we are seeing the layout start again. Quickly look at another bloomberg chart with me. Jobless claims are down to about 830,000. They were way higher than that. The peak one week was 7 million. Definitely the progress is being made. Layoffs are picking up again. What will that do . Layoffs are starting to spread to executives. Not just lowwage workers. Small businesses said they plan to hire workers. So focused on this jobs report tomorrow. Shery thank you. We will have plenty more to come. This is bloomberg. Haidi boeing is moving production to south carolina. It will be says concentrated in North Charleston by the middle of next year. Boeing has been making planes in Washington State for 100 years. But they have increasingly moved their focus east. Passed upines has some of their planes and a new sign of weak travel demand. They have been shifted to other aircraft. They dont anticipate any affect. Found on the exterior skin of the wings. Jet engine maker rollsroyce has announced a financing plan to help it navigate the coronavirus fallout. It will tap existing shareholders. Shares extended their twoyear decline. They jumped by the most since they were issued. Cash flow should improve by 2022. Coming up next, onto the philippines. Shery the philippine central its ranged cap unchanged. It is doing much of the heavy lifting. More forecast to shrink by than 6 . Is great to have you with us. Thank you for your time. Let me ask you, how long will . His pause from rate cuts last time we adjusted was back in june. This is not a sprint, it is a marathon. Not ease until we see things normalize. Growth around 6 . Haidi how much room do you really have continue easing . Our policy right now is 2. 25 . We still have some room. For monetary easing. In case there is a need for it. What about real Interest Rates . We will experience negative real rates. As long as we are redeemed. That is ok for us. Our forecast for the next three years will be anywhere between two to 4 . Comfortable with where we are right now. Up a i want to throw chart for bloomberg viewers. The philippines is the second in southeastnomy asia, just behind thailand. When the pandemic hit the philippines, we have a very strong economy. 6 for the last 10 years. We have international research. The Second Quarter was the worst quarter. Things started picking up. Index crossed the 50 line. 47. 3 last august. It is now 50. 2 . Things are picking up. What is your question again . Hello . Out whatwas asking of kind of nonraid alternative measures are available to you and whether they would be potentially more effective than a straight up rate cut . We cut it by 175 basis points. The Interest Rate was the lowest in the country. We are using new measures. This is a shortterm safety. This is being used for the first time. They have not yet indicated whether they will be part of that. These are unprecedented times. We have seen multiple ways for the virus. What gives you confidence that the worst is over . To ado you see a return better rate . That was for the National Government to build the infrastructure. We have Health Centers all over the country. We have enough capacity. We have the Human Resources to do that. Doctors and nurses. Any surge. Ared for we dont see a possibility of a second or third surge. We are well prepared if there should be any surge. The Second Quarter was bad. The economy practically shut down. Now things are picking up. The Third Quarter will be much better than the Second Quarter. The Fourth Quarter will be much better than the Third Quarter. Shery when you see much better, do you see a pretend return to growth . The Fourth Quarter will be less negative than the second order. We see some possible growth in the Fourth Quarter. Shery does that mean you will not need to look into another cash advance . They will pay that before the end of the year. Shery so you wont need another cash advance . Another leg of deficit financing . To help out the government . I dont know. Because of the decline in revenues. They had looked at each other. You have to increase that plan spending. Shery does it worry you that the Central Bank Independence will be question . As long as there is a crisis by we donce is defined not go to the government asked for a budget. We are really independent. Haidi at what point in strengthening your currency will you not be comfortable. We follow a Flexible Exchange rate policy. This is a matter of policy. We do not intervene. Go to the market to ease the volatility. There is supply and demand of foreign exchange. We will not intervene. We will let the market determine the pace that is best. We dont intervene as a matter of policy. Haidi always appreciate your time with us. Look. Take a patients and doctors and nurses and render Health Care Services at home. Lets take a look at the markets this friday. After japanese markets were disrupted by a system outage, they are adding 4 10 of a percent this morning. We are seeing section lows. U. S. Futures to the downside. A Top White House official has tested positive for covid. And we are not seeing any agreement between democrats and republicans. Sydney, we see it off by more than 1 . We want to show you the biggest drop. It is dropping the most on record. Off by about 34 in sydney. It is under pressure. Operations could be at risk. Mitsubishi materials and tokyo also losing ground. Halfcut their second output. This is jumping is much as a percent in tokyo. Trading volumes doubled for this stock. This after it launched its 5g package. Up, carrie lam says mobility has returned to the city as dozens of protesters are arrested. We will have more. This is bloomberg. Haidi authorities in hong kong are talking of stability after thousand protesters were arrested. Checking ids and cracking down on any attempt to demonstrate. What was the message the government tried to convey . Carrie lam is trying to show that things are back to some sense of normalcy. This is a very important day. Carry on trying to events like they have in the past. Are very much not normal hong kong right now. There is also a stark new reality. This is long been a part of city life in hong kong. These coronavirus issues continue. Shery our north asia government editor joining us from airport. Lets go to Karina Mitchell for the first word headlines. Karina the house has passed a democratic to 2 trillion coronavirus really package. But it is unlikely to become law. It is supposed by republicans, who are most likely to block it in the senate. Nancy pelosi said she will not take the path of least resistance and play to make a deal. Talks will go on as pressures mount on both sides. We are still alive. We are still talking. I am hopeful we can reach an agreement. We are still fighting for the they we think administration should come up with for our heroes. I think we are close in terms of money. We have to see the language. Karina infections continue to surge in new york, reporting the most cases since may. Officials in the u. K. Say london is at a tipping way. Tough social restrictions are being imposed on madrid, while ireland has its highest levels. Global cases topped 34 million. Deaths are above one million. Amazon said 20,000 of its 1. 3 million workers have tested positive or presumed positive for covid19. Amazon says that it tested its employees regularly. Based on its findings, infections and the general population are probably much higher than current figures suggest. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Haidi the pandemic has overtaken Climate Change is the key risk for insurers. Climate underpins both the coronavirus outbreak in many of the geopolitical tensions faced around the world. Had done this risk report for the seventh time, we had a very good view of the positioning of risk. What we have seen is that has risen. K i believe in the long run that climate risk should be made the number one risk. Cause of many other risks. Be it on the health side or social tension. The question of geopolitical issues that we live every day. It is the number one risk position. I wonder what we learned from the pandemic in terms of vulnerability on a political level and the Health Care System level and the poverty level. To the risks that Climate Change will bring. Risks cannot be seen in silos anymore. They are interlinked. We have seen executives in the it hasc, if you look, shocked health systems. It has shocked countries that did not have the means. It has fueled geopolitical tensions because of the interconnectivity. All of these risks are more complex, more interlinked. That makes it more difficult to say, how can we im solutions in order to protect us . Lets talk about how the industry has fared during this time of change. There have been concerns that the industry has not delivered for some of its customers in the way they anticipated. Covid has accelerated many of the trends. You think the insurance a industry is doing a good job . How do they need to change as a result of what we have learned . Inwe were in a situation which we are now faced with friendly risks. Risks we have not seen in the past. It is to be expected that you the into a situation where industry has paid for what it was covering. When there were ambiguous situations, because you cannot foresee everything, they have made a very big effort to make sure we solve those ambiguous situations to the benefit of our customers. Risk a princes role residual risk. Everyone is sick. That is systemic risk. It is a new risk. We have to find new ways to have public and private partnerships. It has never been on the table. This is the reason why we saw a very early on in the process that proposing a new regime to counter those risks, which are very much public and private. Better sure we are prepared and protected going forward. Speaking exclusively to bloomberg. Japanese markets are trading after coming back from that worst ever outage for the worlds thirdlargest exchange. The nikkei of 4 10 of 1 . After it dropped 2 on the wednesday close of trading. Take a look at the tokyo exchange. Outpacing the gains right there. Up almost 2 . Gauge of startups has rallied this year. This is bloomberg. Shery heres a quick check on the latest headlines. The worlds top copper miner has supervisors rejecting the final payoff. 90 of Union Members back they walk out and vote this week. They produced about 100,000 tons of copper and could keep going on without those supervisors. Joining a wave of investors betting on cash and bond reliance. A 50 millionng into the project and taking a 1. 4 stake. Silverlake is increasing its investment all by 254 million. Giving a holding of over 2 . At 50 billion. Indias biggest carmaker posted its highest Monthly Sales in two years. Dealers were stocking up. A 31 jump. Is underway for indias auto sector. After suffering its worst ever slow down even before the pandemic struck. Lets take a quick look at how markets are trading right now. A return to trading from japan. Again of 3 10 of 1 . We are seeing japanese stocks. Tokyo Stock Exchange resumes without a glitch after the all day outage. Holiday closures and other major markets. Hong kong as well as mainland china. Trading marginally lower in new zealand. Mainland china, hong kong, south korea, taiwan, and india are all out of action today. Discussingl be Chinese Companies hoping to add in hong kong. Our markets coverage continues. This is bloomberg. It is friday, 9 00 a. M. And aging in hong kong. I am david ingles. Lets get you the top stories. Dramatic change. Back in business after thursdays. Further doubts on tokyo replacing hong kong as the equity leader in asia