Prices decline. The asx down nearly 1 . We dont have trading in india either because it is mahatma publics birthday, a holiday. Futures are trading on the nifty in singapore down zero point 3 . The 10 year yield slipping back as anticipated. A slight move to the downside with regard to the futures contracts. You see the currencies and weakness creeping in into the dollar overnight. We have seen a reversal of that this morning. You have the yen a tad weaker. Sterling had rebounded to 1. 29. Seenis after we have brexitinduced losses. The aussie dollar unchanged. Haslinda lets get the first word headlines. Top white house aide hope hicks has tested positive for covid19. She traveled with President Trump on air force one to tuesdays debate in cleveland. The president says there is no indication he contracted the virus. Tested positive, National Security advisor robert obrien. He has spent as much time with the president as hicks has. Coronavirus infections continue to surge with the new york state reporting the most cases since may. Health officials in the u. K. Say london is at a Tipping Point while lund paris may close bars and restaurants. Restrictions imposed on madrid while ireland has their highest toppingce mobile cases, 24 million. President trump is suggesting he wont accept potential new rules for the next debate with joe biden. After the first descended into namecalling and chaos. The Commission Said they are thinking of changes to ensure a more orderly discussion. Trumps performance was a national embarrassment. The reading expected to show a sharp deceleration in job gains and slowing of the recovery. Employers added new positions in september, which would be the smallest improvement in the nations revival so far. New fed stimulus in doubt. Virus cases are picking up. Rishaad a bit of news breaking nikola,oment, gm and the embattled truck maker. General motors revising its deal with that company, according to those familiar with the discussions. They may be seeking a higher stake in the startup now that their valuation has fallen so much after allegations of deception. We have seen 40 shading of share prices. 17 down on year. Gm did take an 11 stake in nikola. They would provide Hydrogen Cell technology to their partner and manufacture a new battery pack pickup called the badger. Haslinda another day of stimulus talks in the white house. Leading democrats pushed them closer to did not push them closer to any agreement. Kathleen hays is here. We hear nancy pelosi tell bloomberg today . Kathleen she is focused on getting the package passed, though she sees a wide gulf between the sides, one she thinks is the republicans place to move closer to the democrats. The democrats did vote on their 2 trillion 2. Stimulus package today. All thed unanimously, democrats in the house voted for it, none of the republicans. When it gets to the senate, it will be the reverse. All republicans will vote against it, democrats will vote for it, and lose. Speaker pelosi said this morning before the vote, no matter what happens, they are not going to slam the door on stimulus talks. We are still alive, still talking. I am hopeful we will reach an agreement. We are still fighting for more money. The administration is coming in far too low for our heroes. I think we are close in terms of money yielding on that quite a bit. Close on that, except we have to see the language. Kathleen nancy pelosi says 1. 6 trillion, which is where President Trump wanted to go to. She says it is not enough. White house chief of staff mark meadows said President Trumps plan is a good and generous offer. Not surprising, nancy pelosi disagrees. They are offering is [indiscernible] we have come down 1 trillion, billion. Ame down 100 pretty soon we are just having a conversation, not meeting the needs of the american people. El of a loaf ofe bread is what she sees. That chunk of bread is that aid to state. You look at the difference between 1. 6 trillion dollars and it is a bign, difference. We will see if they can cross it. Quickly, what happens next . Kathleen nancy pelosi said after the vote she is reviewing the document Steve Mnuchin gave her earlier. She will see where they go next. Will it pass . She says it depends. Congress adjourns tomorrow. They will remain oncall in the event there is a vote called, in the event nothing is passed tomorrow. The pressure is building. Airline furloughs. Furloughs are spreading. Salaried executives and not just wage workers. We have a big jobs report expected to show a recovery at a slower pace. A lot of people would say because it is losing the stimulus and that is what it needs new. Now. Rishaad kathleen, great stuff, as ever. A guest giving his outlook on the various economies in asia. Speak about how the pandemic is changing the credit market landscape. This is bloomberg. S is bloomberg. Rishaad back with Bloomberg Markets, private credit sector, 800 billion, a rapidly growing part of debt markets. One of the biggest parts in the boom. Julie lapoint is the director of operations at Equities First and joins us from minneapolis. Tell us about what you do. We have all heard of private equity, but there is credit behind it. How do they Work Together . Equities First Holdings we have our basis for our private equity is client assets. We are in a space that is growing. Recently been engaged 800 billion and getting larger. We are different from traditional financing. It is strictly on what the clients collateral is worth and how we gauge that. Who is borrowing the money at the moment these days . Of low Interest Rates globally, what returns are we looking at . Julie we are seeing growth in every sector. Lots of Different Companies and private individuals are coming to us as the market tightens up in traditional lending. We are getting these clients from all different sectors. Farm, a we had a conglomerate in china, that we provided 250 million worth for research and development groups. Branchre able to then off into a different direction. The times are different now, everchanging. Covid has impacted a lot of companies. They have to may be restructure how they do their business. We have been able to help those companies. Interest,gard to the we have always been competitive with the banks, better than traditional lending. We have always been that way. We will stay the same way, keep our structure the same. Me about the restructuring companies are having to do as a result of the pandemic and the impact covid has had on businesses who need money at the moment, and you being there to perhaps finance . Julie we did see a lot of businesses leaving to diversify. It may be for lots of different reasons. With the covid impact, Many Companies have to do their business differently. We are all working from home. A lot of us are working from home still in the u. S. Everyone is trying to reshape their businesses to be profitable. E see a lot of growth in 2021 we are looking forward to that. We are confident with our standing in asia. One of the biggest markets is in asia. We have about 800 dollars million allocated to hong kong and the asiapacific region in the next 36 months. We are excited for what the future has to bring. Haslinda we are talking about unprecedented interest. I am wondering where you see the rise in activity. Are we looking at small or Medium Enterprises . Is that where you are seeing growth coming from . We are seeing growth in different areas. The main growth we see is clients having traditional financing followthrough for them. They are not able to possibly keep up on the credit they have had in the past, maybe possibly by their margin lending. [no audio] haslinda the thing, julie, there are still risks. Pandemict sure how the will affect industries in particular. Putting therisk of money out too fast for the companies . Julie Equities First is run by our founder, al christie, who has a very good appetite for risk. He also has a good way to control that. The risk we take on is once again through a clients collateral or assets they have to offer in their publicly traded position. That helps us monitor the risk and control it better than some other areas. Earlier we talked about how we are seeing a shift because of covid19. Toyou expect the shift maintain post covid19 when the vaccine is found and banks are willing to lend again . Julie i foresee this going on for a while. Covid19 has impacted so Many Companies. The lasting effect will be there for a while. I dont see that going away very soon. Even after a vaccine is found, i feel the impact it had will last and linger for a while. Haslinda lets talk about diversity. See thehe industry you participation of women rising. What is driving this . Julie i believe the diversity we see in our women workforce i donthip has know what the reason is, but i feel like Equities First especially come a we have diversified our leadership in women. We are in sales, accounting, compliance, operations. In every aspect of Equities First we are 36 in women in the leadership roles and we are looking to gain that up to 50 at least within the next few years. Light of these revelations in the New York Times, would you be lending money what would you do have donald trump [indiscernible] Equities First . Julie if President Trump would want a loan from Equities First he would have to pass our due diligence. In my 30 years of experience, i look at a lot of applications. He would have to have the criteria. If he met that, we would welcome him. Lovely. Thank you so much for joining equities lapoint from first in minneapolis. Job cuts picking up in the financial industry with almost 70,000 people losing work around the world. We look at the implications. This is bloomberg. Haslinda welcome back. Approaching 70,000 with more than with many lenders cutting. Bank of america says it is honoring its no layoff valve. Su keenan is following developments. Many of the World Biggest banks putting prospects on hold for the pandemic. Indeed. Did, the pandemic has outlasted that pledge to put layoffs on hold. Banks,seeing a number of Goldman Sachs now joining the ranks of j. P. Morgan chase, wells fargo and citigroup. We are seeing them resume the cuts that were on hold. Reducing 400 positions. Ceo, it americas appears the bank will stand by its pledge to avoid job cuts this year. Lets listen. We will keep working the headcount in what we need. We are temporarily staffed higher because for the safety of teammates who are high risk relative to the covid virus, we had to get them out of the Public Domain and move them. It took us a while. We had to hire new people to replace them. We will work it back down. We said no layoffs this year and we will stick i that by that. Moynihan said they will work that down through attrition, reiterating comments he made two weeks ago that he believes the government needs to provide more stimulus to help struggling Companies Get back on their feet. Rish . Rishaad su, that is the story with u. S. Banks. How do their european peers compare . Su it seems there layoffs are much greater. Three lenders from europe, north america and asia behind the planned reductions for 2020. The actual total is probably higher because many banks cut staff without disclosing their plan. That said, bloombergs analysis of data gathered through labor unions and other sources shows banks headquartered in europe are far exceeding those in the u. S. In terms of reducing staff and disclosed the highest number of cuts. Theyhat is driven said they would all of that is driven by hsbc. It is part of a large costsaving plan. Many of the u. S. Banks had a better recovery from financial 2008. In european counterparts account for the numbers in europe. Haslinda su keenan in new york on job cuts in the banking industry. Here is the latest business flash headlines. Top copper mine faces industrial upheaval as strikesors reject action. 98 walked out, while the company urged a stoppage. Escondida could continue without supervisors, though output may fall. Abu dhabis Sovereign Wealth Fund flowing money into the project and taking a 1. 4 stake. Silverlake increasing its million,t by 254 giving it a holding of over 2 . At 58ail union valued billion. Indias biggest automaker posted the highest sales in years. Of nationwide lockdown prompted dealers to stock up. Ago. Jump on a year numbers suggest the rebound is underway for indias auto sector that was suffering its worst slow down before the pandemic struck. 4 on fell by as much as after reporting another loss. That puts pressure on the 13 billion a year dividend. Loss is forecast to have a of 40 cents a share. They are reliant on debts. The recent settlement between the u. S. And deutsche bank, reporting rules. Looks to be personal for the ceo. He is required to give an annual guarantee his bank is adhering to the terms of the settlement, which could mean saving himself from future missteps. [indiscernible] lets take a look at where the markets are from asia. A lot on those markets on holiday. Look at where we are in terms of the asia index. Down by 0. 1 . Futures pointing to a lower open. There are concerns about the stimulus package. The u. S. Was slipping. Claims,the u. S. Jobless expected to hold, but above revirus level. 175. Dollar at 1 up nikkei 225 trading following thursdays fall. Nikkei above average. A 52 week high. Providing they arrowhead system used at the exchange. Still, no explanation for the disruption. Manila is trading up. The you want yuan losing its haven status. Plenty more to come. This is bloomberg. This is bloomberg. It is 10 29 in hong kong and shanghai. I am Karina Mitchell with the first word headlines. The house has passed the two point 2 trillion Coronavirus Relief package, but it is unlikely to become law. It is opposed by republicans who are certain to block it in the senate. Speaker pelosi told bloomberg she will not take the path of least resistance simply to make a deal, and talks will go on as pressure mounts to reach an agreement. Meanwhile, sterling fell as the European Union announced legal action against the u. K. Over its plan to break the brexit withdrawal bill. Urszula of honor lay says a brussels has notified london of the move. The eu action could mean a lawsuit at the European Court of justice. Amazon says almost 20,000 of its 1. 3 million workers have tested positive or are presumed positive for covid19. The figure is about half of what it expected. Tests itsd it employees regularly whether they are showing symptoms are not, and based on its findings, the infection among the Current Population is likely much higher than has been reported. Violent protests across india. A 19yearold died in a new delhi hospital two weeks after she was allegedly gang raped by upper caste men in her northern indian village. Anger erupted after reports local police cremated her body without her family being present. Global news 24 hours a day on air and on the Bloomberg Quicktake powered by more than 2700 journalists and analysts in more than 120 countries. Rishaad thanks. Lets check in with markets and have a look at what is going on at the moment. Looking at the dollar index, it is moving to the upside, perhaps a bit of optimism in regard to a fiscal stimulus deal being done in the u. S. We have the failure to get a bipartisan agreement at the moment, but there are signs of the two sides may be coming together. Weve got sterling really moving with these brexit negotiations taking place as britain leaves the European Union. Quickly flipping the board and taken a look at where equities are, we had that lunchtime break come upon us in tokyo. The nikkei to 25, closing out the morning at 1 10 of 1 . Department stores on the nikkei helping that particular benchmark to remain positive. Somesx, feeling that from of these basic resource companies, particularly oil companies. The manila composite, not doing much, of course, as much of asia is on Public Holidays. Haslinda thats right, and global stocks struggling since peaking in september. Friday will bring the last u. S. Payroll report before the election, and the reading is expected to show a sharp deceleration of job gains. Added 870ay employers 5000 new positions in september, which would be the smallest improvement in the revival so far. New fed stimulus is in doubt. Companies are shedding jobs, and virus cases are picking up. Vishnu, it does seem like there is so much risk out of there, so much uncertainty. The gains we saw in the u. S. Yesterday, dead cat bounce. Yes, it does look like that. I think you brought up a very good point, which is markets need to decide exactly what to ofe of a change in momentum the job market and what that means as we go forward, and i think that will be the tricky part. The expectation is there is going to be a slowdown in job creation. Is whether this is going to turn around and lead to unemployment worsening again. There are many moving parts, including the fiscal stimulus, possibly a fed response beyond that, and i think that is what complicates things. Is itst of the matter opportunistic bets. Its not a market of conviction so to speak. Haslinda having said that, it seems like the market is underestimating all of these risks. If you take a look at volatility, its not really going anywhere. Vishnu you are absolutely right. That is where one needs to take a step back and what changed and how the reference benchmark thinks. Still more is conjecture than conviction, but has the excess liquidity in the market dulled the Market Reaction . We did see a pickup in the highyield response, but even that is muted. Markets are not overreacting, so the question really is, have the Market Dynamics changed, or is there overconfidence about a quicker policy response . I think at least oil markets appear to be more apprehensive. Haslinda what does it all mean for the dollar trajectory . We have massive qe on the one side. We have lots of uncertainty and risk on the other. Is it a strong dollar or weaker dollar Going Forward . The risk of jeopardizing my job, im going to start off by saying i dont know. [laughter] we can put up some framework there. The framework that is going to be helpful is the dollar. The dollar will probably strengthen if risk aversion steps up, and it is probably going to weaken as a risk aversion and uncertainty receipt. Along this principal, we can say as we go into the u. S. Elections, the starting point is we ought to see a stronger dollar. What will complicate the picture markethat point the says, hang on, there are risks. The dollar cant go up that much. That is going to cause a bit of wobbles. Beyond that, there are two phases. What to expect after the president ial election . If we expect an emphasis on infrastructure, something along the biden plan im not trying to call out a winner, but assuming if yields went up, that would be a strong dollar. If we think the fed is going to put its foot on the pedal for a bit, i think the dollar will continue to mellow into 2021. And higher volatility, thats the best visibility there is at this point. Rishaad i just want to discuss your note. You say that markets are excitable, and they resemble a cot a cat on a hot 10 roof. Too early to say whether this is a dead cat found, and you say this uncertainty in the elections is kind of like the cat among the pigeons. One New York Times article Donald Trumps tax affairs, the cat is out of the bag. Can the cat get trump . What is your fascination with cats . Vishnu i think keeping with the it theme at my own peril, have to say this bull market, much like a cat, has had more than nine lives. Along the way, there were many temptations to call it out and say, its getting ahead of the real economy, yet it hasnt. If we are honest, we are scrambling to find reasons why. Liquidity seems to be one of the biggest drivers here and one of the biggest catalysts around it, and theres also a question about what we believe the shape of the policy will be and the conviction will be. One of the things that comes up, which is why the entire allusion to not knowing whether this is a tin cat found or the hot roof, if we believe the fed is going to get some success with this hot policy, what that should result in is a slightly steeper yield curve, and at the margin, this will not be good for em currencies or Asset Classes. We must bear in mind even if we there would be reallocation across the eem as things evolve, and there is no clarity on that yet. Rishaad weve talked about what is happening later today. We get the nonfarm payroll numbers out of the u. S. , one of the most closely watched monthly bits of data, but how does that sit with what the fed has to do . They are going to perhaps let inflation run hot as they try to get full employment, which is a long way off. There was always this tradeoff between inflation and unemployment in the phillips curve, which was banished to the history books in the 1970s. It is kind of making its way back, but how can it with 0 Interest Rates . Is really aink that much larger policy question. I think you hit the nail on the head as to what the fed ought to do. In the near term, if you think of it in technical terms, the fed would want to take some responsibility, but it doesnt absolve them of the bigger question, which is, how much reaction would there be between the real economy and unemployment as well as inflation . These relations they were quite used to, and they formulated the taylor rule these things could start to change quite quickly. I think the best guidance for us is what that has made explicit is part of the inflation averaged targeting, chairman powell said they would pain attention to the undershooting of unemployment, not the overshooting. What we need to bear in mind about this jobs report is a slowdown in momentum of job creation, if it starts wobbling towards job losses, the fed would be quick to react. If we see a strong number, the fed may not react. Quickly,y not go up as or the dollar may not strengthen along with it, even if the job whereas we need to bear in mind the ace in a such a metric asymmetric relationship. Rishaad thank you for joining us. Fatcats areint is, subject to dramatically low taxes under trumps administration, an issue of real contention. Coming up, bank of america saying the United States will need more fiscal stimulus. Weve got our exclusive interview with Brian Moynihan. That is next. This is bloomberg. Rishaad you are back with Bloomberg Markets asia. Bank of america Ceo Brian Moynihan says more fiscal stimulus is needed. Telling bloomberg, he is optimistic about prospects of recovery and pointed to strengths in consumer spending. Consumer spending would continue to be strong, and today you saw more confirmation in the outside world. Year to date, the 2020 spending is about 2. 2 trillion through the 26th of september by bank of america customers. Its basically a little bit up from last year. Think about that. With all weve gone through in society with unemployment rising, with people staying at 2020 is theo date, same size as 2019. Admittedly, it had an interesting path. At the beginning of the year, january and february, we were up 9 , 10 through the first two months. Then you drop down. Then you worked your way back up to flat cumulatively, so that has been good. Your to date, we are up a little bit, and the idea is to keep pushing that along. In a consumerdriven economy, if consumers are spending, that will mean the economy will slowly work through and unemployment will come down. As we went into the pandemic, it was the shutdown of the economy to a large degree. Were there mortgages or Business Loans . As you look at those deferrals, do you think those are going to turn into the link was sees . Brian as you look at our deferrals, we were at about 50 billionplus. We are down to 14 billion. 11 billion of those are in the mortgage arena. Our credit card deferrals are down to next to none, 400 million in total. Its not going to be an issue. We went to our customers and said, if you need a break, tell us. We did. We did 480,000 a week at one point. We are down to a couple thousand a week, and its really a nonevent. The real estate peace, home mortgages, we will work through based on the statutes. Consumers are in good shape. Consumers are in good shape. We still have a lot of people unemployed who were employed before the pandemic. We are adding jobs, but not as fast as we were. What does the u. S. Economy need from your Vantage Point to get fully back . Brian the thing about the economy that people have to focus on is you had a deep trough in the Second Quarter, and a big restoration to bring you back to an economy that was about 95 of the size it was before the crisis. Now we have to close up that 5 . Our economists moved in their breakeven point, where the economy post covid was the same as the economy precovid. That means we are coming out the side. What we need from a human aspect, we need to make sure we are taking care of the people affected by this virus who because of the virus cannot get back to work. Thats a lot about the restaurants and industries that were talked about before i came on today in terms of airlines and cruise ships, and then to help the states get through this fiscal whole fiscal hole. In new yorknprofits that provided great performance venues for us. We have to have a stimulus aimed at helping them. At the end of the day, they havent crossed the river yet. A lot of industries back to normal sales levels, they are doing fine, so we ought to take the care of the resources we were given by the american tax payer and support for those companies to be able to be there. Analysiss sensitivity on getting that fiscal stimulus out of washington and your projection when the economy is coming back. Economy is kind of to the level. I would have to ask the experts what they think the difference is. They dont bake in a lot of fiscal stimulus. The last came out with assumptions, theres not as much a baked in. Its encouraging to hear they are talking. Hopefully, they will hear something positive. Much fastera recovery, and its the human thing to do. That was bank of americas Ceo Brian Moynihan speaking to david westin in. We have breaking news. Trump saying he will begin quarantine after his trump aid hicks tested positive. We did say earlier trump had gone for a test for covid, but the results are not out yet. Trump said he will be in quarantine after hicks tested positive. We will bring you this developing story. Next, trumps latest move to reduce dependence on china. Keep it with us. This is bloomberg. This is Bloomberg Markets asia. Stocks of rare earth miners jumped after trump signed an executive order to expand the mystic u. S. Production domestic u. S. Production. Lets get over to david stringer. David, what specific steps does donald trump want to see, and how important is it for the United States to boost Domestic Production of these rare earths. If you could begin by telling people what rare earth stew and why they are useful. People arentrth necessarily familiar with, but they may be using them right now. Types of metals, that are used in miniature sized magnets that go in all sorts of products, from Consumer Electronics to guided Missile Systems to wind turbines. That is why this is such a key issue for the u. S. And donald trump. Last year, he asked the department of defense to try to spur production. This time, he is for specifics. Hes trying to identify which potential producers could. Enefit from loans he has encouraged departments to look at the reuse of abandoned mining sites and whether they could be utilized to bolster Domestic Production of these products. Haslinda what are the challenges ahead in building up the supply chain outside of china. We know it is not that easy. David absolutely. China accounts for about 80 of u. S. Imports. That is why this is a key thing, but that also shows the size of the challenge. Its not simply a case of mining to ends and putting them uses. There are a lot of complicated steps. Australiatually seen produce. They have taken a decade or more to tackle some of these difficulties of becoming a fullyfledge producer. He can certainly sign more executive orders and put out an ambition for realizing that dream of a self sustaining supply chain, but that is going to take some time. Haslinda Senior Energy and commodities reporter david stringer in melbourne. To recap the headlines coming across from the u. S. , trump saying he will begin quarantine after hope hicks tested positive. The first lady would be in quarantine, as well. Of course, this came from his tweet. Earlier in an interview with has President Trump said he recently been tested, awaiting results for that. We will see what happens. Hicks traveled with Trump Aboard Air force one to and from the president ial debate, as well as to a rally on wednesday. Resulted in a confirmation that hope hicks has tested positive. That,d just looking at hope hicks had been working so hard, is what he said in that tweet. Lets get you up to speed with markets. Weve got holidays in south korea, taiwan, and of course in china. India also has a Public Holiday today from mahatma gandhis birthday. 4 10 of 1 to the downside, if you look at that. We can see the Singapore Dollar heading for its biggest weekly amid newsmonth, that it will keep its policies in place. Take a look at the manila composite index. Just on the wake of the Central Bank Governor telling us on Bloomberg Television that the Monitory Authority still has for the room to ease policy, even if he thinks the worst is over for the economy. A quick look at jakarta, moving to the downside of 4 10 of 1 . Haslinda lets do a check on where we are in terms of how the u. S. Is setting up. Futures pointing to a lower open , extending those declines after opening earlier. We are awaiting the jobless report, and of course a stimulus package, as well. No bipartisan agreement on the deal. We heard from nancy pelosi earlier she is not in a hurry to come up with a deal. It will not be the path of least resistance. They are looking at a 2. 2 trillion package. The gap remains pretty big. Plenty more to come in the next hour of Bloomberg Markets asia. Keep it here with us. This is bloomberg. Haslinda it is almost 11 00 a. M. In singapore. I am haslinda amin. Welcome to Bloomberg Markets asia. Rishaad i am Rishaad Salamat it. President trump says he and the first lady will begin quarantine ahead of covid19 test results after a close white house aide contracted the virus. Hope hicks traveled with the president to this weeks debate in cleveland. Aslinda differences remain stimulus talks dragged on in washington. Democrats say the latest proposal falls short. The house passed a relief bill already dismissed by republicans. Rishaad vietnam could be the next target in americas widening trade fight, the administration accusing hanoi of systematic currency manipulation. Rishaad lets take a look at where markets are right now, and asia mostly lower after opening in the positive. Of course, no stimulus package agreement between the two sides. Nancy pelosi saying that she will not seek a path of less resistance. We are keeping a track on the nikkei to 25 which is on lunch break following a fallday halt yesterday. 225, pretty much flat. Anticipating a lower open, reversing earlier gains. The s p closed up after a choppy session on that thursday, currently up to tenths of 1 . At the just looking time market that just came on stream. Down by about one quarter of 1 . The country expands that fiscal stimulus measure. We just got some technicals. It is said to advance in a few days against the dollar for some technical reasons. It is near its 200day moving average. Manila is having a look at that one with the Central Bank Governor telling us that they have plenty more ammunition, if you will, and more room to cut Interest Rates. Haslinda u. S. President trump is awaiting results of a covid19 test after one of his closest aides was positive. Hope hicks boarded with him to and from air force one for the president ial debate tuesday and to a minnesota rally wednesday. We are joined by alex wayne who leads bloombergs white house coverage. Quite a surprise here. Alex this was a scoop for bloomberg news. A few hours ago, we learned hope hicks tested positive. She is experiencing symptoms of covid19, we are told by people close to her, and other president says he is awaiting a test. We dont know what he means by beginning the quarantine process. Hes got rallies scheduled for this weekend. He is scheduling tomorrow. None of that travel so far has been called off. I dont know if this is going to be the president and the first lady lock themselves in the residence of the white house for two weeks. I kind of doubt it. Rishaad the thing is hope hicks was traveling with the president. She was in contact with a huge array of his team, including himself. How does this play out with the Election Campaign . You just touched on that. Alex it draws more scrutiny to the president s handling of the coronavirus outbreak in the u. S. , which is the worst in the world, and also his disregard for Public Health practices that would curb the epidemic. He generally refuses to wear a mask. Biden forittled joe often wearing a mask. He holds these big Campaign Rallies where thousand supporters gather shoulder to shoulder. Almost nobody wears masks. Are fair questions to be asked of the white house if he is behaving recklessly. Im not going to say hope hicks got sick because of what the president is doing, but i think there are questions to be asked of the white house whether they are taking precautions to protect their staff. All of this coming at a time as President Trump is rejecting any suggestions at all that rules to the debate might change. Who has the upper hand . What do you make of this . Does go intoeally a 14day quarantine, i believe that would cover the next debate, october 15. Polls have shown that a majority of americans disapprove of the president s handling of the coronavirus outbreak. His response to the pandemic has been pretty widely panned. Americans arent very happy with it, and joe biden has drilled in on that. He takes every opportunity he can to claim that the president s response is faulty, and that as president , biden would make ending the outbreak in the u. S. His top priority. Thank you so much for joining us, bloombergs white house editor alex wayne. Of course, this pathogen continues to reverse of resurface in various parts of the world. Lets get to the first word news with Karina Mitchell. Statea new york reporting the most cases since may. Paris may again enclose bars and restaurants. Increasingly, social restrictions are being imposed on madrid while ireland has its highest case level since its lockdown eased. Global case now top 34 million with deaths over one million. Amazon says almost 20,000 of its 1. 3 million workers have tested positive or are presumed positive. It said in a blog that figure is about half of what it expected. Amazon revealed it tests its employees regularly whether they are showing symptoms or not, and said based on its findings, infections in the general population are probably much higher than current figures suggest. Friday will bring the last u. S. Payroll report before the election, and the reading is expected to show a sharp deceleration in job gains. Analysts expect employers added 875 thousand new positions in september, which would be the smallest improvement in the revival so far. New fed stimulus is in doubt. Companies are shedding jobs, and virus cases are picking up. Bybal news powered journalists and analysts in over 100 20 countries. I am Karina Mitchell. This is bloomberg. Haslinda still ahead of this hour, vietnams potentially caught in the geopolitical crossfire between the u. S. And china. Joinsmbassador to vietnam us as the Trump Administration accuses hanoi of currency manipulation. This is bloomberg. Just taking a look at the philippine markets, moving to the upside. The peso having the best quarter among em currencies apart from the bulgarian lev, just gaining a tad, but nothing much going on as we see the dollar index moving to the upside. All against this backdrop of the Philippine Central Bank keeping its key Interest Rate unchanged for a second straight meeting. Itd also approve an 11 billion cash infusion to the government. The central bank, doing heavy lifting to boost an economy forecast to shrink more than 6 this year. We asked the governor about the policy response. Adjusted wasime we said for asjune and , ig as the crisis is ongoing a sprint. Is not this is a marathon. I think we want to ease before , whichthings normalize would mean employment around 5 and growth around 6 . Our policy rate right now is 2. 25 , so we still have lots of room, and our reserve requirement is around 12 . We still have some room for monetary easing if there is a need for it. What about real Interest Rates the . Though . Gov. Diokno we have experienced negative rates in the past, so that doesnt worry us. Our primary mandate is price stability and financial stability. As long as we are within our target range, and inflation rate toand inflation target of 2 4 , thats ok for us. Outlookw, our inflation is that inflation will be in the neighborhood of 2. 3 . That is down from the original. Orecast of 2. 6 for this year our forecast for the next three years, 2021, 2022, it will be 4 , so between 2 and we are comfortable where we are. I want to show up a chart showing the state of the economy and how much need there is for further monetary and fiscal support, economists saying that the philippines is the second 2020, aonomy in forecast of a contraction of 6. 8 . If rates remain steady, what kind of nonrate measures are available to you, and will they be more effective . Gov. Diokno when the pandemic are a philippines, we strong economy, and this growth of 6 the last 10 years right now, we have a lot of national , so the worst is over as far as we are concerned. The Second Quarter was the worst corner quarter. In fact, the manufacturer Managers Index crossed the 50 rose to 50. 2 in september. Things are picking up. I want to get your views on the currency. The peso is on track for its best year since 2012. 48 to the dollar, is that a level you are ok with . We follow we do not intervene as a matter of policy. We only intervene just to ease the volatility. Of foreignand demand exchange, or the confidence of the International Community continues and the peso raised to 48, we wouldnt intervene. We will let the market determine the price of the peso. Haslinda for more analysis, lets bring in the Development Committee chair of Investment Management association of singapore. Ofwas also a former Bank Singapore employee. Is one of many governors in asia putting a hold on policy for fiscal stimulus to play a bigger role. What will drive the markets higher . Have reallyanks asked their counterparts in the finance ministries to take over in terms of stimulus, and that is something we are hearing from so many central bankers. Because asimportant, policy rates go near the lower bound, it becomes increasingly difficult for Central Banks to have any impact. They are relying more on measures coming from the fiscal it is developed markets or in emerging markets. In emerging markets, there is a bit of a benefit in that some of the biggest clients like china are recovering, so that is a positive for many emerging markets who work closely with china. So far there is optimism there will be fiscal stimulus in the u. S. , but even until now, there has been an impasse. What is the risk the market could be disappointed, and what would that mean . That isnt my base case. I think they will get to an agreement, although it seems to be very difficult. It will probably be the last minute at the last hour. If that doesnt happen, i think the market will be disappointed. A muchntioned, there is greater reliance on fiscal policy, and we are seeing signs that consumers are feeling the of theat some Unemployment Benefits are rolling off in the u. S. That fiscal cliff is a worry for markets, and i think markets will react. Periodow, we are in the of the cycle where we are seeing recovery, and numbers, even the nonfarm payrolls, will look good, although they are slowing, and there is worry down the road that we need more support and it should come from the fiscal side. Disappointment would lead to a correction in markets. Politicians may react to that. They often do. Haslinda if you want to stay invested in this market given the volatility, how do you position yourself . Before. Differently from pandemic, bonds, equities across the world, that gave stability to the overall portfolio. What happened recently is government bonds have lost their role as a balance in the portfolio, and that makes it difficult to construct a stable portfolio. Bonds are not going up when equities are going down, and we saw that in september very clearly. Equities sold off, but bonds didnt do anything to protect the portfolio. It is becoming more difficult for Asset Managers to build balanced portfolios. One way of doing it is to adjust the risk up and down, and that is what is creating volatility in the markets. Rishaad you talk about volatility. You have alluded to the president ial elections, and reading a research, you say emergingmarket equities stand to outperform in a scenario if joe biden wins. Tension whiche the Current Administration has generated with its relationships with china and other countries, i expect those tensions to subdue with a new administration, which would be keener on reestablishing old oniances and keener establishing diplomatic relations. Those tensions have hurt asia via china, etc. I think a new administration will take out some of that risk for emerging markets who are working around china, whether it southeast asia. Rishaad where do you invest to take advantage of that scenario or generally speaking . How are your thoughts evolving . Its evolved in terms of thinking how to balance a portfolio. Ist we are seeing right now that polarization with tech doing extremely well. Financials, energy, doing very poorly. I think with recovering economy, because even if the pace is uneven and there is uncertainty, over the medium term, the economy is in a recovery. It might be slower and more disappointing, but the market ran ahead of itself. This is one of the strategies i have espoused. Ive also increased Asset Classes with high yields. We have probably seen the worst, and things are slowly improving. That will give some kind of balance to a portfolio for the next couple of years. Seemsd very quickly, it that Market Participants are fairly sanguine about a second wave of this pandemic, and we are already seeing little bits of that emerging. Yes. The second wave and infections has emerged, and as we get to the autumn in the northern hemisphere, it could get worse. The good news is the death rate is very subdued, and the medical profession has probably learned a lot from what happened in march and april. Now the virus seems to be much less deadly. The second positive is vaccines, we dont know when it is coming and who will bring it out, but we are closer to it. There are so many candidates right now. Sooner or later, we are going to have good news on the vaccine front and will slowly be able to see the end of the worst part of this pandemic. I compare this pandemic to some of the really bad ones, like 1917. There were two waves, but it started coming down. Rishaad thank you for joining us, joining us from singapore. Plenty more on the way, looking at vietnam in the crosshairs of the white house administration. This is bloomberg. Lets do a quick check on the latest business flash headlines. Bank of america says it is standing by its pledge to avoid job cuts as some of its leading rivals let staff go. Ceo Brian Moynihan told bloomberg the bank has said there will be no layoffs this year, and that remains the case. Fargogan, city, and wells have all resumed lowering headcount. Brian moynihan said he made a pledge, and he is sticking to it. We will keep letting attrition be our friend, and we will keep working the headcount to what we need. We are temporarily staffed higher frankly for the safety of the teammates who are highrisk relative to the covid virus, we had to get them out of the Public Domain, and it took us a while to reapply. We had to hire new people to replace them. We will work it back down, and we have said no layoffs this year, and we will stick by that. Haslinda haslinda a wave of retailrs betting on the benches. Abu dhabis Sovereign Wealth Fund is throwing 850 million into the project and taking a 1. 4 stake. Silverlake is increasing its stake in it Reliance Retail giving it a holding of just over 2 . At retail unit is now valued 58 billion. Indias biggest carmaker posted its highest Monthly Sales in over two years as an easing of the nationwide lockdown prompted dealers to stack up. Suzuki sold more than 16,000 vehicles in september, a 31 jump on the same month a year ago. Indias auto sector was suffering its worst ever slump even before the pandemic struck. Course, we have been looking forward to the reopening of the trading day in tokyo. Yesterday, there was no trading at all over this hardware issue that scrapped the entire days trade thursday, and it is catching the eye of many of japans top officials, the deputy Prime Minister saying the trading suspension was very regrettable, going on to say it is important for the countrys infrastructure, and they are going to make sure the Financial Services authority will verify results of the Tokyo Stock Exchange investigation. Extraalking about this budget they have, saying they havent used all the funds from that, and they are using reserve funds for antipandemic measures. Thats a look at tokyo. 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. Haslinda its almost 11 30 in singapore. We are in the middle of the trainee day. The sun is shining after a dreadful week of rain. Singapore airlines, as you may know, it has already ditched plans for a flight to nowhere, but it has come out to say that perhaps it is converting one of its airplanes into a restaurant. If you want to lunch in its first class, you would have to part with 600. The sti, currently down about 4 10 of 1 . Lets get the first word headlines with Karina Mitchell. Karina President Trump says he and First Lady Melania Trump will begin the quarantine process ahead of their covid19 test results after a top aide tested positive. Hope hicks traveled with the president to tuesdays debate in cleveland. The president revealed test results for himself and the first lady are expected by friday morning. Other white house staff has previously tested positive. If you spend as much time with the president as hicks. The house has passed and the democrats a 2. 2 trillion Coronavirus Relief package, but it is unlikely to become law. Its opposed by republicans who are almost certain to block it in the senate. Speaker pelosi told bloomberg she would not take the path of least resistance just to make a deal, and talks would go on as pressure mounts to reach an agreement. We are still alive, and we are still talking, and im hopeful 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. I think we are close in terms of money. We are yielding on that quite a bit, but close on that, except we have to see the language. Karina it sterling fell as the European Union announced new action against the u. K. Over its plans to break the brexit withdrawal bill. The commissioner said brussels has notified london of the bill and its a violation of the good faith enshrined in the original agreement. The action could mean a lawsuit at the European Court of justice. Global news 24 hours a day on air and on Bloomberg Quicktake powered by more than 2700 journalists and analysts in over 120 countries. I am Karina Mitchell. Haslinda lets do a check on where the markets are now. Asia mostly lower. Theres a lot of disappointment there has been no agreement on that stimulus package. We had nancy pelosi coming out to say there is still a large gap. By nikkei 225, currently up 2 10 of 1 , resuming trade following the full day halt. There has been no definitive explanation for that halt. The p conch, currently up 3 10 of 1 . The pcomp, currently up 3 10 of 1 . We have the jakarta composite index down 4 10 of 1 . Take a look at the yuan. Coming off its best quarter in 12 years, boosting its haven starting action over the u. K. Plan to breach brexit terms, london also seen at a virus Tipping Point. Some of the movers, tracking massive losses, down 33 , slumping the most on record after the fda required an on its drug. Udy it is facing rising price pressure with competition from the likes of sin novy and to keita. Upsan rubber in malaysia, 2. 5 . Rish . Rishaad just getting to this news coming out of australia, breaking news, something that has been talked about, a travel bubble between australia and new zealand. The deputy Prime MinisterMichael Mccormick has announced there will be quarantinefree travel across the tasman. Reached,e that was saying it will allow travelers from jurisdictions free of covid19 to travel without a. Eriods of selfisolation uplift, airng an new zealand stock up 4. 6 . A state like victoria may not be included. Thats a bit of breaking news coming through out of canberra. The Trump Administration meanwhile may have another country in its sights in trade and currency related disputes. We are talking vietnam. It has been a beneficiary of the u. S. China trade war. The u. S. Administration plans an investigation into hanois currency practices. Lets discuss that with a , a former u. S. K ambassador to vietnam. Thank you for joining us. This should it transpire . Should it be a warning shot to hanoi to pick sides in what is becoming an increasingly bipolar world . How much of it is a message to other Asian Countries likewise . Michael im not sure about it being a message. I think it is part of the administrations concern over countries having large deficits with the United States. Vietnam has the fourth largest deficit with the u. S. , and i believe in january of this year, they were put on the watchlist, the Treasury Department watchlist, as a currency manipulator. Since then, i know having been to vietnam a couple times just before the covid lockdowns took place that the government was indeed concerned and working at that point with the treasury and other American Government authorities to try to get to the bottom of this. Iis is the first time, believe, that the Commerce Department has used currency asaluation or undervaluation a part of evidence in a subsidy case. It certainly could be a warning shot in that if it comes through and if a mechanism or a set of procedures is agreed upon, and it turns out to be true, then it could lead to punitive tariffs. Ambassador, past administrations have cut small and poor countries because vietnam does remain a relatively poor country, but they have cut them some slack. Do you think it will be different this time . Michael thats an interesting question. This year after all is the 25th anniversary of the reestablishment of relations with vietnam, and it would certainly be bad form to destroy the great relationship or to put a cloud over the great relationship we have developed over those 25 years by doing this. Frankly, this is going to be a process, and youve got to get started. Undervaluation is quite a bit different from currency manipulation, so this is New Territory for the United States. Sure its going to be hard and fast, and yes, we usually do try to work with countries on questions like that. Vietnam has certainly had a great relationship with the United States. The United States is the largest destination for their exports, and their exports have been growing. When i was ambassador, we had a 6 billion to 8 billion deficit, and in the first seven months of this year, its been 30 billion. It shows their goods are certainly in demand and our competitive. We will just have to wait and see how much the currency figures into those calculations. Do you see u. S. Companies responding . We have heard from the likes of nike, lululemon, saying they may move their business and operations out of vietnam to elsewhere. Michael a lot of companies have talked about supply chains shifting as a result of the u. S. China trade war, and most of that shift has benefited be that nikeit may and some Companies May actually that the conditions for doing business in vietnam are changing and wages may be going up. In that case, they may be looking to a place like cambodia where the wage rates are little bit lower. For many other companies, particularly the hightech companies, vietnam is an increasingly positive destination. Over the past several years, they have been the winners. Just as recently as 2019, they had 19 billion coming in. The previous year, 15 billion. They are a destination for fdi. Asean as a whole is also benefiting from these shifts in supply chain. Is not theietnam only country being targeted by the u. S. In the palm oil space, we have the u. S. Taking issues with the gv to deal with forced labor issues. Is there a risk that the rift seaneen the u. S. And a countries will get even bigger . Michael i dont know. I dont believe that would be the case. Certainly, we have seen a rift ean was the eu and as somewhat exacerbated by palm oil related to both malaysia and indonesia, but that was moreover Environmental Concerns than labor concerns. U. S. Trade law, there is always a prohibition against goods thatarifffree are the product of prison labor or forced labor. The best example of that is chin jong where we had put xinjiang where we have put tariffs on because of that. Saying an of proof product is prison laborfree is on the company, so the company has to be quite vigilant of what their labor practices are and being able to support their Self Certification as being forced labor free. That will be the first thing we look at. Saw donaldny people trumps decision not to join the tpp or withdrawing or disengaging with this part of the world as disengaging with asia. Has that been detrimental, and has china filled that void in your view and allowed to that country to have a freer hand in these disagreements in the south china sea, for instance . Michael personally, i certainly do believe that leaving the tpp was a mistake, and i think it has hurt american industry. I believe even the new phase i agreement with japan has not restored the balance yet. I do think it was a mistake. Now has it meant that china fills in the gap . Im not sure that is true. China is a rising power. China is a big economic power, so their share of the economic asia isicularly within bound to coop, and we have seen that. China is the number one trading artner for a majority of sean nations, and im not sure tpp would reverse that. The tppolitical part of is another thing you have to u. S. At, the fact that the is a Strong Partner with asea and has been for the past 70 years, and thats an important tpp to remember, but the was yet one more pillar in that ean,cture of support for as and not being there is not a good thing. We should be there. Having said that, we are in other trade agreements with asean, and we are looking even more now in covid times of ways to help. Gotaad thats all weve time for. Thank you for joining us, Michael Michalak from the u. S. Asean council. Move top, britains leave the European Union. Negotiators are determined to make a deal by the end of this month. Weve got an exclusive interview on the way next. This is bloomberg. Reports that u. K. And European Union negotiators are ready to enter the final stage of negotiations, the socalled tunnel, art to optimistic at this point. With mcallister talked bloomberg about the need to have future relations grounded in a solid legal basis. Be seengotiations must through. David i do hope the Recovery Fund will be operational as soon as possible, and the sooner, the better. I think its important that counsel and permanent parliament sit down. That they discussed the main issues where we have differences and that we get it done, the sooner the better. Just to make it very clear, for investors, this is something they care about. You do believe there is enough time from now until the end of november, start of december two iron out those differences. David its difficult for me to speculate about a date, but the political will must be that we get it done sooner than later because we need the money to flow. Speaking of political will, going back to brexit which is something i know you follow closely, the question everyone is asking is, are we going to enter the tunnel by the end of the week . David the negotiations certainly have entered a crucial phase. The United Kingdom will have left the single market, and we now have a window of opportunity to find a deal or not. A lot is at stake now. Wethe end of this month, need a ready legal text, because we need time in parliament to scrutinize a possible agreement. Theres a week left to get something on paper that you can ratify a vote on. Do you think the brits get this . The since i get with European Parliament that they are waiting, and its very problematic still. Do you think they get it . David the European Parliament has been very clear with a deadline of the 31st of october, but i do understand the british know this. We have made it clear that this European Parliament works different from the house of commons. We have to involve our committees. If we get it done by the 31st of october, it should be able to get it through parliament. Waiting. Ne is what do you hope he can bring for the negotiations . What is what you would like him to say . David david he informed the european leaders and the u. K. Coordination group in the. Uropean parliament we still have three major obstacles in the negotiations. One is the level Playing Field. The second is fisheries, and the third is a solid governance structure. I do hope we actually move forward. The European Union is offering the United Kingdom something we have never offered another country before, tarifffree goods, but this comes at a certain price, and its important we have fair competition standards. I often hear when you look at the entire negotiation that 90 of the deal is ready or could be ready, but its 10 that is still very political. Would you say that is a fair description . David folks have made progress on a variety of issues. Obstacles remain that are of fundamental importance. Forn the European Union are competition, but competition has to be fair. That is why the level Playing Field is of crucial importance. Where can the European Union to move . Thats the other side to this argument. If they move on those issues, what can the European Union offer in return . David both sides have to compromise, and to compromise, both sides have to show flexibility, but you have to show flexibility without violating your own principles. We understand the British Government has redlines, but we also have our principles. We have to protect the integrity of the single market. Of course, the ongoing negotiations have been burdened by the socalled u. K. Internal markets bill. From our point of view, it is a difficulty in implementing the withdrawal agreement, especially is key for us. Its a litmus test for red ability in this process. A final question. When i speak to officials behind the scenes, they sometimes tell me Boris Johnson is negotiating like a madman, negotiating like trump. The problem is that u. K. Is not the u. S. Do you agree with that . David im not in a position to comment on how the u. K. Prime minister is negotiating. We accept the British Government. We want to get a deal done from the european side. I strongly believe that it is better to have our future relations grounded on a solid legal basis. That is why for the last minute we will keep calm in the European Union and continue to negotiate. Parliamentropean brexit chairman david mcallister. Coming up, japans lost generation. Thepeople are shut out of employment market in their 20s and continuing to search for direction in their middle age. This is bloomberg. Rishaad you are back with Bloomberg Markets asia. Japans economy is struggling. It is also battling the fallout from an earlier downturn. Many graduates missed out on corporate jobs back then and are still unemployed and living with their parents. Lets get more. We take an indepth look at this in the new generation edition of businessweek. Tell us how you became interested in this group. Reason is i am of the same generation, and its an open secret that many people have been suffering and continue to suffer because of the fallout of the employment ice age. I went on the street and found out who these people were. Haslinda how widespread is this problem . What is being done to tackle it . A major this is problem in japan. I dont think the government has yet to understand the full scope of this issue. The government has started to focus on helping these people. Dont think that is going to be a solution, but it is far more complicated than that. Haslinda do you get a sense of hope, or do you think they are the lost generation . Ki i dont hide the fact that getting to know these people was just heartbreaking, but its easy just to say, hey, its too late. Forget about this generation. Japan cannot afford to dismiss these people because of the labor shortage and declining population. Im hopeful that maybe some people, if not all, will get a second chance. Haslinda you can read his article about japans lost generation in the latest issue of bloomberg businessweek. We are looking at challenges facing millennial graduates this weekend on Bloomberg Television. Generation interrupted explores the catastrophic impact recession onic and people 1624. Rishaad thanks for that. Lets have a look at u. S. President trump entering quarantine, awaiting results from a covid19 test, after one of his closest aides tested positive. To give you an idea of an approximation hope hicks had with him, she traveled with him on air force one to an the president ial debate in cleveland and minnesota on wednesday, as well. He has been tweeting that hope hicks has been working without taking a small break and tested positive for covid19. Weve got melania trump, as well. They have both gone in for tests to see if they have the pathogen. Haslinda thats it, and of course, we are awaiting the results of that test. That is it for this edition of Bloomberg Markets asia. Daybreak middle east is next. Happy weekend. This is bloomberg. The following is a paid program. The opinions and views expressed do not reflect the views of bloomberg l. P. , its affiliates or its employees. Announcer the following is an important paid program about humana Medicare AdvantagePrescription Drug plans, sponsored by humana. Life keeps changing, and so do you. As your lifestyle evolves, is your Health Care Plan keeping up . Did they teach you at treat you as an individual . L