In 34 states, the 70 average of new cases is higher than a month ago. Australia set to lay out a big spending budget to revise the economy and generate jobs. Today. Also makes it shery heres how markets are looking right now. U. S. Futures opening flat after u. S. Stocks rose in the regular session. They ended the session at a three week i. We have the s p 500 and the nasdaq and the dow beginning more than 1 . The nasdaq composite so its best in almost a month. We have the s p 500 closing at session highs. We had optimism over a potential stimulus package. Nothing mentioned President Trump being released from hospital tonight. Regeneron rallying after President Trump was given their experimental antibiotic treatment. Energy was a big gainer. Take a look at wti which is above 39 a barrel and continues to gain ground at the moment after the largest jump since may, rallying in tandem with the equity markets. Lets see how things are shaping up for the asian markets. Here is Sophie Kamaruddin in hong kong. Sophie asia futures are mostly in the green. Stocks set to extend gains at a twoweek high. In australia, stock watchers will be watching for details of the upcoming budget announcement that may benefit sectors like infrastructure, budget as well as the finance sector. We will keep an eye on the gold, ceivingook at re conditional approval for listing. Northern star has agreed to buy a small arrival. Lets check in on whats going on with the rba decision. Aussie bond futures, you are seeing them slightly tick lower. Watching for some volatility on the short end of the aussie bond curve. This as we have a three year yield below the rbas target. Watching to see if the rba will act to lower government financing, with more fiscal support anticipated. The aussie Dollar Holding Steady below 72. We are seeing the aussieyen holding steady. Expecting this to head lower given we have uncertainties around u. S. Politics. For now, we are seeing a risk on tone as we see that played out in the bond space. The kiwi 10 year yield up about three basis points. Tracking the movements in treasuries as markets reprice election risk. Haidi lets go back to the top story. President trump set to leave Walter Reed Hospital in about a halfhour. He tweeted hours ago, telling americans not to fear the coronavirus. He said he feels better than he did 20 years ago. The White House Position says allician he has met criteria but his team remains on guard. The team and i agree all of our evaluations, and most important, is clinical status support the president s safe return home where he will be surrounded by worldclass medical care 24 7. Aides sources say trumps are not sure how to keep the president contained the white house residence. For the very latest, we have Emily Wilkins on the line from d. C. We are getting some reports from the New York Times, saying they wont be doing Contact Tracing for the event in the rose garden. We are hearing the second president ial debate may turn out to be a Virtual Event. What is the latest we know and what are these concerns that once the president leaves hospital, that is really going to chart his own territory on how the rest of his recovery goes . Emily sure, this has been a story we have been following since friday morning, all weekend long. News after news after news. Definitely looking forward to whats going to happen with the debate. Yes, trump is supposed to leave walter reed. He is still infectious so he supposed to be quarantined in the residence area of the white house. However, there are a couple of questions of who is going to prevent him if he wants to leave and walk to the west wing . You saw some of the images coming out of President Trump while he was at walter reed. The white house is trying to reject an image of a president still able to work, fulfill his duties, and to get things done even while he is being treated for the coronavirus. Shery in the meantime, the list of people in the white house already infected with the virus keeps growing. Emily yes. We did hear the White House Press secretary Kayleigh Mcenany did say she has tested positive for coronavirus. Weve got numerous senators in the rose garden who have tested positive. Other individuals as well. It seems to a certain extent the list keeps growing of people who were around trump and around these other individuals in previous days. At this point, republicans are trying to continue things as normal. You have the hearings for the Supreme Court vacancy that are coming up a little later this month. Those have not been rescheduled at this point. Republicans say they will go forward with them even though several senators on that panel do have the virus. If they need to, they will do them virtually. Haidi as we look ahead to the Vice President ial debate, what will we be focusing, and also pertaining to the next president ial debate, we know that President Trumps Campaign Spokesman said he remains ready to do that despite obviously, presumably, he will be released from the hospital today. Emily i think a lot of the major issues really havent changed. It is still coronavirus, even more so now with trumps positive diagnosis. It is still economy, it is still jobs. The jobs numbers we saw a rolled out on friday were not as strong as they were expecting to be. I think some of these key issues, we will see them prop up again and again, both in the Vice President ial and future president ial debates. What will be interesting to see in the president ial, if trump continues to strategy of last time of trying to knock biden off guard, interrupting him, speaking over him. It seems like from the polls we have seen since then, that strategy did not really pay off with voters, many of whom felt biden, not trump was the winner of the first debate. Shery the New York Times reporting perhaps they are considering a Virtual Event for the next president ial debate. Our Bloomberg Government reporter Emily Wilkins with the latest. You can get more on Trumps Health and the Virus Outbreak on todays edition of daybreak. Go to your terminals. It is also available on mobile on the bloomberg anywhere app. Now, lets go to Karina Mitchell with the first word headlines. Karina we start with the pandemic. Covid19 cases spreading again across the u. S. , especially in rural areas and smaller cities. Also raising concerns and you arc in new york. The seven day average is higher than a month ago, although they have fallen in california and florida. The centers for Disease Control saying the virus can spread through the air at more than six feet. Meanwhile, the Prime Minister of malaysia is informed quarantine after coming in contact with a minister who was positive for covid19. He will spend two weeks in isolation, although he says all his recent tests have been negative. On monday, malaysia logged its highest daily surge in new infection since the outbreak began. The government is imposing lockdowns and specific parts of the country. The Australian Government will lay out a map of spending Government Spending program to generate jobs for the thousands laid off in the coronavirus pandemic. The treasurer is expected to announce a deficit worth 160 billion when he delivers the delayed budget. Economists say the shortfall would be equivalent to more than 11 of gdp. 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. Im Karina Mitchell. Haidi, over to you. Haidi still ahead, plenty more on australias big day. We have the delayed budget delivery as well as an rba decision. Bill evans joins us after pushing back his rate calls and what he sees of less support for action. And volatility is presenting buying opportunities. We get her market outlook, next. This is bloomberg. Shery u. S. Stocks kicked off the week with the biggest gain in nearly a month. Stocks are advancing even as volatility inches higher and remains at elevated levels. Joining us to size up the investment environment is nicole webb from Wealth Enhancement Group new york. Great to have you with us. Our viewers are looking at the vix volatility index. The chart on the bloomberg also showing you the november vix contract and that is really remaining elevated as opposed to the november the october and september contract. The vix, despite the rally we have seen, it stays around the 25 to 30 level. How can you really take advantage of this volatility and where do you find the opportunities . Nicole absolutely. I think all signs point to the volatility certainly going to be presenting systematic buying opportunities for investors. We look at economic data. We go back to friday and the jobs report, which unfortunately was overshadowed by trumps positive test result. When we actually extrapolate the data, sure, we came in under the mark but we are talking about the addition of 12 million jobs in five months. This is undeniably positive. Certainly at this level, there will surely be a slow down to getting back to where maximum employment numbers were. But if we look at if you want to draw some parallels to obamas last election in 2012, our unemployment numbers were about the same. Look at what the s p 500 has done since 2012. If we can take a step back away from the election bias and really focus on the fundamentals, i do think if we get another congressional stimulus package, more liquidity added to the market, those investors who are in their own way trying to time this market with their political biases at bay might miss the opportunity to capitalize on this volatility as it continues to present itself in certainly the months ahead, likely through the end of the year. Shery investors seem to be already positioning in parts of the Health Care Sector. We saw were general and climbing the most in seven months because the president had receive their antibody treatment. Where in this sector do you find opportunities and what happens if you get a democrat in the white house . Nicole yeah, i love both of those questions. There are so many times when it is hard to speculate which of these top Name Companies are going to be the highest performer, the right trade to make. I like to talk to our investors right now about taking a step back and saying what do we know is a ripple effect, something that is here to stay as a result of covid and his Global Pandemic . When we are looking at the Health Care Sector right now, we Like Companies with i truly believe where humans gather, the standards have forever changed. We saw that as a result of 9 11 with the way we handle airport security, as an example. The pendulum always swings a little bit too far. These companies will likely participate in the vaccination in meaningful ways but continue to prosper from sterilization and cleaning, the johnson johnsons, procter gambles, they will have a foothold in the recovery for many years to come. Haidi when it comes to the broader recovery, i know you are bullish on Energy Stocks and things that most were folios are underinvested when it comes to energy. We have seen that with crude, climbing the most since may on the hopes of a stimulus deal. If a deal does get done, is that a green light enough to extend positions in energy . Or would you be wanting to be awaiting for the arrival of a vaccine . Nicole a couple of things. There are still so many sectors of the market that are behaving as if there will never be a recovery. Or they are simply being overshadowed by this tech rally, the magnitude of this instantaneous adoption and adaptation, acceleration of technology usage. When we look at the Energy Sector in isolation, the Global Demand was always fairly stable. Because of that, when it came to thinking about energy infrastructure, it was like you can cap it as a toll road. While we are not quite there yet , there will be a return to the normalization and i think it is important to look at on average, the Energy Sector in the u. S. Was about 8 of gdp and about 5. 5 of employment. Right now, it is only making about 2 of the s p 500. It is civilly getting crowded out. For the longterm investor, these dislocations are still omnipresent, you just have to be looking for them in the major indices, not just buying begin to see is a whole. Haidi when you take a look at the minimal reaction we have seen across equity markets since fridays october surprise, the bombshell news from the president on his health, does it tell you that the markets seem to shrug off any Downside Risk . That at the end of the day, it is still the fed that is backstopping the volume we are seeing . Nicole thats a really interesting question. First and foremost, the fed has given us so guidance. They are really out of levers to pull. They might be able to do a little buying but i think they are pointing towards congressional stimulus. We have pumped trillions of dollars of located into the market. Wen it comes to how do offset that, we have been talking about this debt bubble forever. At the same time, there are three ways to offset it you grow your way out, tax your way out or inflate your way out. Having conversations about inflation but i think the fed is pointing toward, we have to grow our way out. The way to grow our way out, the next lever weekend pull is to urge an additional round of stimulus to put money in the head of the American People to get them to remain confident, to have Consumer Sentiment stay high. If we can get them to liquidity they need to continue to participate, whether it is in consumption or investing, that is probably going to be our best catalyst for the road to recovery. Haidi nicole come appreciate your time. Nicole webb, senior vp of Wealth Enhancement Group. Chicago fed president Charles Evans says more fiscal stimulus is needed to support jobs and the economy even as the white house and democrats haggle over a package. Still, he painted a positive picture of economic recovery, telling bloomberg it exceeded his expectations. Mr. Evans i think the economic recovery has been pretty good. It has been a little quicker that i was expecting act in june when i submitted a forecast. I have been quite nervous about, well, there a normal recovery where we get back to the level of where we were going into this sometime in 2022 maybe. We seem to have been doing better than that. Even though covid caseloads have been very high in the u. S. And deaths have been 200,000 and more, we have been able to continue to grow through this. The last employment report was probably more modest than people were expecting. I think the real question is how much more quickly we recover after this. I think we are trying to figure out where the labor market is going to settle out, how much improvement we are going to get in terms of bouncing back from when we were closed down, and how much recessionary dynamics we will still be faced with sometime in the spring of next year. In that environment, i do think inflation will be weak. We could get some relative price changes which will lead to higher measured inflation for a time, but i dont think that is likely to be persistent. We will have to see. You said in your speech this morning that you anticipated your forecast more fiscal stimulus. Can you motto what happens if we dont get it . Can you give us a picture of what we would see if they dont provide additional stimulus . Mr. Evans im hopeful theres going to be more fiscal stimulus. I think have got like 1 trillion which is not largest some proposals. That does have that effect on the forecast. If you take that away completely, that reduces aggregate demand by quite a lot. That means the road back in terms of employment is going to be a lot harder. I cant begin to guess how this is going to work its way out. If we dont get stimulus, if the economy is slowing, is there anything more the fed can do to stimulate the economy. With Interest Rates at zero, you pretty much have done what you can . Mr. Evans we are going to use all our tools available. We are going to be paying attention to what, say the labor market is, where inflation is. At the moment, i think we are still trying to figure out where the recovery is going to stabilize in terms of what normal recessionary dynamics might look like. If we were to get additional stimulus, if we were to see continued recovery, if we got the Unemployment Rate down to 5. 5 by the end of next year, those are circumstances where were in the ballpark of what we can deal with. Inflation could be moving towards our objective and things could be improving. I think we are going to have lower for longer Interest Rates for quite some time. It will probably be uncomfortable for many people. We need to get inflation up to 2 and beyond so we can average 2 . We need to ensure the labor market continues to improve. Fiscal support would be extraordinarily welcomed. Continued business investment, deciding how to grow in this new environment and bringing on more workers, that would be very welcome. And thehave to play out spread will continue to be important for quite some time. Haidi chicago fed president Charles Evans speaking a close italy to bluebird. Shery coming up, australia set to lay out a massive Spending Program later in the rba set to make a rate call. The details ahead. We are watching for President Trump to leave hospital at 6 30 p. M. Eastern. We turn to the white house. We will get you the latest details next. This is bloomberg. Haidi later today, australias government will be unveiling a big spending budget aimed at creating jobs and dragging the country out of recession. Paul allen joins us now with a look at what to expect. Details have been released early already. So what is it taking the shape as . Paul yeah, the treasurers mantra in advance has been jobs, jobs, jobs. 1. 5 billion dollars for a new manufacturing strategy for made in australia products. Billion for apprentices and trainees. Infrastructure with either you spend the money or you lose it. The intention is to get people back into employment. You a look at the Unemployment Rate, 6. 8 looks pretty good. But the real rate is likely to be higher than that. There are thousands of peoples on wage subsidy right now and the government expects the jobless rate to hit 8 by the end of the year when the programs get wound back. We might see these job keeper programs extended. The treasurer says he intends to keep the stimulus going until unemployment is back to 5 which is considered full employment. Thats a lot of other measures as well. The creation of jobs, women and young people. More money for pensioners. In bringing for the tax cut as well. Shery all this spending is going to mean a huge deficit. What sort of numbers are we looking at . Australianbillion dollars is the consensus. Gdp in the 11. 6 of debt ceiling is likely to be pushed up again. Psychologically important number of one trillion aussie dollars. Esat debt ceiling and josh se at least five years of deficit down the track as well. If you go back to the last budget, the government just before the election saying we are back in the black. The first few the budget is since 2008. We were never at the time, it feels like tempting fate. The pandemic glue that out of the water. This budget has been delivered five months later than usual. There was one silver lining, the iron ore price. That is holding up extremely well, and so is government revenue. Shery paul allen in sydney. Coming up next, bill evans joins us after pushing back his rba rate cut call to november. What he sees as less support for action from australia. Morehead on the budget day. We are waiting for President Trump to emerge from the Walter Reed Hospital. You are looking at the bethesda hospital. President trump just minutes ago sweeting he will be back on the campaign trail soon. The victors only shows fake polls, referring to joe bidens wider lead. You are looking at supporters waving the american flag, waiting for the president to emerge at 6 30 p. M. Eastern. We will bring you that. This is bloomberg. Haidi we are looking at live pictures as we await President Trump to leave Walter Reed Hospital imminently. He has been getting treated for covid19 over the past four days. President trump just weeding a few minutes earlier, saying he will be back on the campaign trail soon and the fake news only shows the fake polls, referencing a number of polls that show voter satisfaction with the way he has handled his own virus situation, as well as showing joe biden running away when it comes to his lead in some states. We are just waiting for President Trump to leave. He would walk out of Walter Reed Hospital today, the front door that is. He tweeted he is feeling really good and urged americans not to be afraid of the coronavirus, even as more of his aides are continuing to contract the virus on the rose garden cluster. Kayleigh mcenany and two other officials in her office have also tested positive. President trump will leave hospital after four days. Keen to get back on the campaign trail. As we continue to watch those live pictures, with protesters out there with the word Second Amendment written on the flags. Clearly concerned about the right to bear arms. Lets get you the first word news with Karina Mitchell. Karina the u. S. Aims to keep a pressure on china with secretary of state mike pompeo meets his counterparts from japan, australia and india. They are to meet in tokyo to demonstrate solidarity in the face of chinas rising influence and ambitions. Beijing expressed concern the quad is an attempt to form exclusive and stoke a new cold war. The former korean trade minister looked to be a step closer to leaving the wto after European Union government offered support. The race to succeed is in its final months and the eu says him and the former nigerian finance wto intendsthe to announce a winner by november 7. The world secondbiggest cinema chain cineworld is closing all of its u. S. And u. K. Movie theaters amid a resurgent virus and winter blockbusters that have been pushed back. All 536 theaters in the u. S. And 127 in britain will close temporarily, affecting as many y as 45,000 jobs. No timeline has been given to for the reopening. Pentup demand in china as half a Million People traveling to medically in the first four days. Almost 80 off last years total. Ridehailing apps crashed and great wall tickets sold out after people spent nine months housebound. The travel industry and the rest of the world is expected to lose more than 1 trillion this year. Global news 24 hours a day on air and on Bloomberg Quicktake in more than 120 countries. Im Karina Mitchell. This is bloomberg. Shery lets get over to Sophie Kamaruddin in hong kong for a check of some top calls as we count down to the asia trading day. Sophie shery, in the face of the u. S. Yield curve, goldman coming through with a twist on the popular trade, recommending go sort the 10 year versus two and 30 year bonds. This on a bet the democrat win would put more pressure on the 10 year and that could see yields rise by 30 to 40 basis points in the months following the election. More focus on commodities. Brent remaining Morgan Stanley seeing a Movement Towards late 2021. Morgan stanley saying this is as to titan supply recovery and demand seems to be modest. Reduced supply from opec players. Switching out the board to focus on the rba as markets priced in freezing from the australian central bank. Jumping in on that bandwagon, shifting from its call on no easing given the rba seems to be more comfortable with lower yields at a softer aussie dollar. Expecting a strong hit of the rba for a rate cut in november. Haidi markets got a jolt two weeks ago when westpacs chief economist predicted the rba woodcut rates. He has pushed back that prediction to november 3 on account of the governments fiscal budget due out later on, and what we are doing super tuesday in australia. Joining us to discuss these major events, westech chief economist bill evans is with us. You said this would be a budget unlike any other. To what extent do you feel optimistic there will be necessary reforms within this budget . Know there will be plenty of stimulus to demand. What they do on the reform side and supplyside is quite uncertain. We have already heard they will the guidelines for banks which i think is responsible lending guidelines. I think thats a good thing. Likeregard to the issues industrializations and product markets, there is not really any evidence there will be much policy. It is very much going to be on the side of domestic demand, infrastructure, tax cuts, tax benefits for bringing forward investment. Boosting the Housing Market and replacing the job keeper package of the end of march. Want to throw up this chart for the benefits of our viewers, showing the debt burden. Where no longer talking about a projected surplus. This showing that Government Debt is projected at about 37 of annual gdp. We know the budget will be delivered later this evening is almost 12 of gdp. Is this the time to be looking at metrics . Do you take the view these are extraordinary times, a recession like no other and you have to throw the kitchen sink at it . Bill it has almost already been done. The interesting thing tonight, we are expecting about 240 billion. 134 of that has already been allocated. That is policy we are already aware of. The weakness in the economy, lower tax take and higher on deployment benefits, that will add about 60. New policy is only going to be about 45 billion out of the 240 billion. Next year, we are expecting a deficit of 115 million, of which about 66 billion will be new policy and 22 billion will be weakness in the economy. While it is going to be a spectacular headline number tonight, a lot of the action is already baked in the cake, particularly around the job keeper program. From australias perspective, we are benefiting from the fact our starting point to gdp was around 19 in 2019. We think it will be around 25 by july 2022. Up to 30 july 2021. Sorry, 25 2020. 30 , 2021. And then flattening out to 43 2023. The real damage is done the next three years and then we expect some stability around the low 40s for net gdp. Shery hold on a second because our viewers are not watching President Trump emerge from Walter Reed Hospital. He is walking. He is on the way out and headed to the white house. This after being treated at Walter Reed Hospital for the past four days. He was hospitalized friday evening after announcing he had tested positive that day. Earlier today, he tweeted moments ago that he will be back on the campaign trail soon. That the fake news only shows the fake polls, referring to those pull numbers recently that have shown Democrat Joe Biden opening a wider lead. We were now seeing President Trump as he walks to his vehicle where he will take a helicopter and then head to the white house. Haidi right. We know that President Trump has really sought to project an image of strength and recovery, tweeting throughout. He did the driveby greeting in the suv yesterday. Earlier tweeted saying the virus, hes urging americans not to be scared of the virus, that this has been a lesson for him. That he feels better now than 20 years ago. We know during his time at Walter Reed Hospital, he received a number of experimental drug cocktails, antibody cocktails, including, but we know from experts we have spoken to, it is generally only given to pretty severe cases of covid19. We also heard from the white house physician, saying he may not entirely be out of the woods even as he leaves to go back to the white house. Shery yeah, he has received really stateoftheart treatment. This coming at a time when we continue to see those infections rising at the white house. There you can see the motorcade of President Trump leaving. He will be back at the white house where he will remain in isolation. For now, lets bring back our guest, bill evans, who is still on the phone with us. We were talking about the australian economy. Here in the u. S. , we are also struggling with potentially another stimulus package coming but really seeing no progress on that front. How important is it for australia to really go forth with these measures . Not only when it comes to the budget package that will be announced, but as you have advocated in your notes, perhaps it entails bringing forward some tax cuts. Es, tax cuts have already been legislated, what we call stage two, legislated for july 2022 an. The stage two tax cuts look certain to be going forward. The debate is whether it will be july 2021 or it should be july 2020. The tax cuts would happen immediately and provide the boost we think we need now. I dont think theres a lot of point in waiting for these tax cuts until july 2021 it is quite a bold forecast and it does not appear to be the consensus. I think that is the way the government should be looking at this particular issue. Cuts, stage three tax they will not be brought forward retrospectively. That will cost about 12 billion a year for the stage ii tax cuts. It forms a very important part of that 25 billion of stimulus we are expecting for 2021 that will be announced in the budget tonight. Shery for our viewers just joining right now, we are watching President Trump departing Walter Reed Hospital. You can see marine one helicopter. He will be heading towards the white house where he will be in isolation. This after he was hospitalized on friday and we continue to see those infections in the white house rising. Let me turn also to the package of measures we already saw in australia back in march. How much of an impact have they had so far . And what are you seeing in terms of economic recovery that many analysts are now calling it a three speed dynamic given we are seeing regions where they have a Virus Outbreak, where they have been affected, or also virus free regions . Bill yes, certainly if you look at the economy for the second half of this year, we are forecasting growth of 4 . Included in that for the september quarter, we have been expecting the victorian economy to contract and then recover somewhat in the summer quarter the december quarter. The other states, we are looking at 2 to 3 growth. Victorias about 25 of the economy so they are creating quite a drag for the september quarter. I believe the reopening of victoria we could expect through the second half of the december quarter will tend to give them a net positive contribution. We saw in june that when you reopen, you can move very quickly. The nation lifted by 4 in one month. Certainly, when you reopen, things will move quickly. We are hearing about that in china now. 4 in the second half of the year is quite a strong recovery. Att year, we will be looking 2. 5 for the whole of the year but the reopening is important. Haidi as we continue to have this conversation, we are seeing President Trump get on that helicopter to leave bethesda, maryland, to leave Walter Reed Medical Center to go back to the white house where he says he needs to get back on the campaign trail. He has struggled over the past four days, the polls reprice the potential for a november surprise after his october surprise, which was his diagnosis. Amidst all of this, we see uncertainty when it comes to the u. S. Dollar. A lot of economists and fx forecasters are seeing for the downside as Risk Appetite returns for the rest of the world. What are the applications for the aussie dollar going into the end of the year for you . Bill we forecast the aussie will go to . 75 by the end of the year. I am still comfortable with that. They lost ground in september, but the beginning of september, it was well above . 73. It was in danger of outshooting the . 75 target. Markets never move in one line so we are pretty happy that the correction we have seen in september wont be a sustained correction. When you look back at the history of the aussie dollar, when it turns, it tends to turn for two or three years. It clearly bottomed out in march. I am confident the rest of this year and through 2021, ozzie will be rising, very much reflecting the outperformance we are seeing in china. China has been the dominant factor in that will continue to be the case. I think we are expecting by the end of next year, the chinese economy will have expanded by about 15 relative to where it was in 2019. The u. S. Economy will have contracted by a few percentage points. Haidi we know taking a look at the data on the bloomberg, the markets see the rba having one more rate cut before the end of the year, be it today, more likely november or the last meeting of the year. Given the november we get the outlook for inflation and growth, could there be a surprise . Bill upside surprise in the sense they will move . Haidi upside surprise in the sense they may not have to move if we see borders reopening, if we see continued handling of the melbourne situation. No, i think the shortterm effect is not what they are looking at the moment. What they are looking at the moment is there forecast by the end of 2022, the Unemployment Rate will be 7 . To thatt get a nephew does not lead to weight pressure 5 is not good enough. That leads to inflation pressure. It is still below the 2 . If we see a little bit of better news, that will not be enough to move the dial. Forecast isortant the twoyear forecast, indicating the need to move now. I am not at all concerned if we saw a reopening in victoria or anything like that that would change the mediumterm forecast. Thatarkets expecting target, i am very pleased they are because it has been our forecast that the markets are expecting that, then deliver it. The impact of surprising the it, they not delivering effect that might have on the aussie dollar and on confidence, particularly on private sector aid. We have seen good downward momentum on housing Interest Rates of the moment. Housing has always been a key to the recovery in the economy. Shery bill evans, thank you very much. Looking ahead to australias federal budget, not to mention the rba decision. Meantime, you are watching marine one carrying President Trump back to the white house where he will be isolating. He has been treated for covid19 for the past four days. Now, sources telling bloomberg the white house is creating an additional room for the president to work in the residence and avoid heading to the oval office. They will be converting the diplomatic Reception Room into an office space for President Trump, as he recovers from covid19. You can see marine one carrying the president back to the white house, as we continue to see the rising infections. We had the press secretary and to other officials in her Office Testing positive. Plenty more ahead. This is bloomberg. Shery you are taking a look at live pictures of marine one carrying President Trump to the white house. President trump has been treated for covid19 for the past four days. He was hospitalized on friday. Covid19 spreading again across not only the united states, with 34 states the more virus cases that a month ago. The u. S. Centers for Disease Control and prevention updating its guidance and now says the virus can be spread indoors to people more than six feet away. Lets get more from bloombergs health care reporter, michelle cortez. There has been a lot of debate on whether or not the cdc would raise this guideline. I remember a few weeks back, they have this on the website but then it was down. What is the latest on this one . Michelle so, as research continued, we get more information on the virus, the cdc and researchers have realized, in fact, coronavirus can stay airborne. We are talking about the size of the particles and how they behave. What that means is it is possible for somebody who was infected with coronavirus to be in a room, to cough or expel virus and leave the room, and then have someone else who is not infected walk in and actually contract coronavirus when there is no one else present there. It is a very significant elevation of the potential risk of this virus. Although, the cdc is saying it is very rare it happens but its possible. Haidi michelle, at the same time, we are also seeing the spread elevated across the u. S. , across 34 different states. We are seeing a higher 70 average when it comes to new cases. Is this particular concerning as we know the colder temperatures in the Northern Hemisphere winter is likely to elevate infections as well . Michelle this a difference between being surprised and being concerned. Everybody expected this to happen, but its absolutely why Public Health officials have been worried about. We are still only early into october. We are in the early phases of the fall in the Northern Hemisphere, and theres a long way to go. The idea that we are already seeing some elevated rates when we all have to be indoors for a prolonged period of time and we know we are not going to get widespread vaccination for weeks or months, even at the most ambitious levels, it is not a good way to start the coronavirus the second time around. Shery we are also hearing that more patients hospitalized by covid19 have neurological symptoms as well. Do we have any more guidance on the progression of this disease . Michelle the coronavirus tends to work into separate sections. The first one is when the virus is taking over your body, that is when you are seeing healthy cells become infected and turning out more viral particles. It damages the cells that it has penetrated. That is when we see a lot of these breathing issues because it gets deep into the lungs and it hurts your lung cells. This is theave of neurological damage and the immune system response that is overwhelming. Those other kinds we are starting to see some impaired thinking and an overwhelming response to the infection that can cause blood clots and a whole host of other conditions. That is not nearly start until seven to 10 days after an infection. That is something that is like a second wave of concern. For President Trump and anyone who has coronavirus. It is not just the first initial breathing problems nd combating the virus itself. Haidi right. We have been reading more and more about these long covid cases as well, with patients continuing to suffer for weeks and months afterwards. There you have it. You are watching marine one, the helicopter carrying President Trump from Walter Reed Medical Center in maryland, now just coming in, lending on the white house lawn. We know that the president will be going into the white house, where he will be presumably going into a period of self isolation. He had been treated at the hospital for the past four days vip and experimental drug combinations, experimental antibody combinations, as well as a steroid. He was seen earlier walking up of the front door of the hospital, thanking people before getting on marine one. The president earlier tweeted saying hes keen to get back on the campaign trail. He says the polls show that hes trailing extensively in the polls behind behind joe biden are only published by fake media. We have heard reports that when it comes to the next president ial debate, we could see a virtual debate. There are concerns we have heard from white house aides that the president may not be able to be contained. Shery yeah, no wonder we are hearing about that additional room for the president to work in the residence. You set it. We are watching to see what happens to the next president ial debate which is supposed to be a town hall style debate on october 15. We will be watching closely what happens, if that will actually go virtual given whats happened to the president and given these concerns of coronavirus spreading. Already, we know the press secretary in the white house and two other officials in her office have tested positive. This is adding to this growing list of people around President Trump being infected, not only first lady melania trump, but also hope hicks, the campaign manager. Not to mention new Jersey Governor Chris Christie who checked himself into a medical center. He helped him prepare for the debate. Not to mention three republican senators testing positive. What will that do to the Supreme Court nomination vote that the president wanted to fasttrack will be a key question. As we head towards the nomination and that november 3 vote, President Trump making it very clear he wants to get back on the campaign trail. Haidi to really make up some of the lost rounds, because as we have been talking over the past months, his handling or many of his critics say his mishandling of the pandemic in the u. S. Has been the weakest point in his reelection campaign. Now that he has contracted this disease himself, we know he has been trying to project strength, even going so far to say he feels better now than he did 20 years ago. He has urged americans not to be fearful and hes treating this as a practical lesson when it comes to the handling of covid19. We know hes keen to get back out there, get back out there to make up some of the lost ground he has suffered over the last few days against joe biden. This also comes at a time we have seen case numbers across at least 34 states across the u. S. , smaller cities, starting to rise. We are going through colder temperatures where epidemiologists are concerned we will see multiple subsequent waves of the virus across the u. S. Which is already killed more than 210,000 people since february in the u. S. President trump presumably, we are going to see him have to selfisolate for a period but for how long . We are hearing from sources that he wants to get out there as soon as possible. Lets get the latest with Ebony Wilkins with Emily Wilkins. What is the latest do we know . We are seeing these live pictures of marine one now in front of the white house on the lawn and the president about to disembark. Emily yes. The president is now heading back to the white house. He will be kept still in quarantine, being monitored in the residence area of the white house. There are a couple of questions of how exactly that will work. Trump is eager to get back to work and people from the white house and his campaign have been trying to present him, even during his time at walter reed as being able to do the job, being willing to do the job. They had him in his motorcade the other day. It is interesting to see that trump is back at the white house what is going to be seen from him in the days ahead. Shery emily, as we speak to you, we are waiting for President Trump to disembark marine one as he heads into the white house after staying for four days at Walter Reed Hospital, being treated for covid19. I do want to ask you, do we know at this point the severity of his disease . Because he has been able to walk out of the hospital unassisted suvhe has been in a n greeting supporters, but at the same time, weve heard hes taken all these drugs that usually you dont give unless you are severely ill. Emily exactly. Forthcomingt been with the president s condition. The only reason we only found out about this was because a bloomberg reporter who broke the news that hope hicks had been tested and tested positive for coronavirus and things went from there. Over the weekend, there were questions about whether President Trump had been given oxygen. He was. We need more information showing. You look at the white house physician and he says they are not out of the woods yet. That they will have to continue to monitor into the weekend and they emily they will not be able to breathe a sigh of relief until trump begins to improve. Haidi we are seeing marine one leaving the white house lawn. We saw the president on the balcony after having disembarked. He will be heading into the white house for a period of self isolation as he continues to recuperate from being infected with covid19 after four days of intensive treatment at Walter Reed Medical Center. When it comes to the lost ground against joe biden we have been talking about, what is it looking like in the polls