Concerns over u. S. National security. The Vice President ial contenders preparing for debates. Kamala harris and mike pence must convince voters that they have what it takes. U. S. Futures opening flat but watch the after our market action. Regeneron gaining more than 3 at one point with president itsalling it antibody antibody a cure. 500 inming after the s p the regular session climbed to a onemonth high, we saw quite a reversal from yesterday. Renewed hopes for a stimulus package, though a though it may be a piecemeal approach. We also have minutes from last month showing fed officials where concerned about the amount of government relief so far. Take a look take a look at oil, this after it fell below. U. S. Stocks on the rise again. Inventories increased by more than 500,000 barrels last week. To see how things are shaping up voice shopping is ahead for asian markets with stopped set to track the gains we saw in u. S. Markets. We are keeping an eye on pharma names. A move could affect a delisting in shanghai and hong kong. We saw alibaba shares rally for a Third Session in new york. Fear to support after the benchmark of more than 1 with alibaba leading that. Seoul earnings do later this morning. Pulling up the charts, aussie stocks closed at a onemonth high on wednesday as markets considered the budget and potential boost of cross sectors from housing to retail. A breakout brewing as analysts turn positive with stock upgrades outpacing downgrades. Haidi lets get to our top story, stimulus relief continues to make headlines with democrats indicating they are open to a narrower deal. A broader relief package will not happen before the election after President Trump put it to a halt. Ofre do we stand in terms more piecemeal but substantial stimulus for these targeted sectors . Was it a surprise to you that President Trump went and did this given that it would have been a populist move to push assistance through . Say, i was very surprised. Normally when somebody is running for office, the prospect, particularly during an emergency like this, that you could offer potential voters some relief in the form of money in their pockets would be something that most candidates would be open to and welcome and in fact pushing for and to hear President Trump tweeting yesterday that he was walking away from the table and then hours later, even more mindboggling, that he was walking back to the table left me wondering what the strategy could be and you are left with the prospect that there was no strategy at all. Where we stand at this moment seems to be not far from where we were before, that we could relief in theted maybef certain sectors, relief for people in terms of supplemental unemployment, but we are probably not going to see a substantial bill passed before the election. It you sort of think about you sort of think about that and think about the number of people dead in the United States, 7. 5 Million People infected, so many people out of work, and eviction crisis we are on the cusp of, yet the congress and the white house cannot provide people with you haveen after Jerome Powell and others saying this is essential is astonishing that we are in this situation just four weeks before an election. Elections before the and we do have the Vice President ial debate tonight. This faceoff, it has been decades since we paid so close attention to the Vice President of candidates. What are you going to be watching for tonight . Jeanne i think the last Vice President ial debate that got a lot of attention would have been sarah palin against joe biden because she was a big attraction and an unknown. What im going to be watching for is how does the Vice President defend his handling of covid, he was in charge of it, how does he defend the president , which he is going to be asked to do, and what does he do intern in terms of his attacks on Kamala Harris . She has said we heard she is going to he is going to try to painter as a radical liberal and make the case that she is a hypocrite and that she has flipflopped on issues Like Health Care and calling joe biden a racist then joining him. We are going to be watching for those attacks. Racist start to signed or sexist does he start to sound racist or sexist is part of that. How does Kamala Harris sound . This is the first time Many Americans will see her. She ran for president bush he is not as wellknown as the Vice President. Is she able to focus on the pandemic and make the case to the Vice President that the president was not able to keep himself or his family safe, how can we expect him to keep us safe . We will be watching closely. Thank you for joining us. We return to the Vice President ial debate later. Lets check in on the first word headlines. The u. K. Government saying it will walk away next week from brexit talks and there is no clear deal within reach. The news came after the eu indicated it would task force johnsons resolve over his selfimposed deadline on the 15th. Also says its redlines cannot be coughed and it is prepared to call johnsons bluff. Bracing for the arrival of hurricane delta which is heading for louisiana after crossing mexico. The storm has weakened to a category 2 but forecast to strengthen as it approaches the u. S. 10th majorbe the storm to hit the u. S. In a year with the National HurricaneCenter Running out of names. The World Trade Organization has named risks. The korean trade minister and former nigerian finance chief will contest the post with the wto set. The organization will announce its new director general next month just after the u. S. Election. Saidrump administration is to be exploring restrictions. Ns tencent on Tencent Bloomberg understands the white house is concerned the chinese giant will win access to the banking and personal data of millions of americans as they come to dominate global payments. We are told no decision is imminent. Coming up later, we will have more on what the u. S. Curbs on chinese tech firms mean. Eternal, markets turn optimistic after a stimulus deal is being discussed. Tracie mcmillion is with us next. This is bloomberg. Investors turn back to risk on even at the prospect of pare down stimulus proposals. Our next guest still use buying opportunities. Tracie mcmillion joins us from north carolina. Great to have you on. So many headlines these days. 27 days until the election, not to mention virus headlines in the stimulus package. What are you paying attention to and how do you take advantage of these opportunities in the markets . Tracie thank you for having me today. Watching whatly everyone else is watching, the headlines coming through and how they are impacting market returns and as you mentioned, we got some headlines yesterday that had the markets moving down significantly and then all of thealmost losses today. Thate telling our clients while all of these headlines disturbing tohat markets, it is important to look through those headlines and the disruption they are causing and look to the potential for better growth next year and the potential for market gains possibly through the end of this year and into next year. Shery given the volatility and uncertainty, not to mention the macro environment with lower rates forever, we have heard many people advocate for gold. Gold isrt shows that stuck in a range and you are seeing silver there were expectations that this metal traded like an industrial what is happening and where will this go . Tracie we feel like the commodities complex in general, but gold in particular, we have seen it at a 10 pullback in gold. To the u. S. Ed dollar. As long as we have a forecast for low interest rates, andssive money supply potentially a modest decline in goldollar, we think that goes higher from here and by the end of next year, pretty significantly higher. We have a price target of 2300 to 2400 by the end of next year. How much downside to you see in the u. S. Dollar, particularly if there is no cohesive stimulus package coming and you have outperformance across the rest of the world, not does that signal further downside . Tracie we do think there is probably going to be some modest dollar, but it is really not going to be very significant in our opinion. We think we are likely to get some kind of additional spending after the election. We think both parties have that as a goal, to increase government spending. Forlso see the potential about 3. 8 percent, close to 4 growth in 2021. That is going to keep any downside to the dollar pretty contained, we think. We are seeing a new narrative take shape for market participants, just since President Trumps coronavirus infection. If there is a decisive democratic victory, is that a net positive for the market even with the Tax Implications . Tracie we think so. Our Analysis Shows that even though there are likely to be think thates, we do with additional spending and additional focus on expanding u. S. Manufacturing and expending expanding access to health care, those could outweigh the negatives of additional taxes. Also, additional taxes may not be to the level that we are yet to today, so it is be determined whether corporate taxes are going to back up to 22 or maybe fall between and 28 . Always appreciate your time with us. You can get more on the stimulus hopes, staying alive, and more on todays edition of daybreak, you can go to your terminals and it is also available on mobile. This is bloomberg. The u. S. Is said to be considering restrictions on payment apps by aunt and tencent ant and tencent. Disrupte could recordbreaking plans. Lets get more on this. What do we know about these discussions and what is being proposed . This would mark a major escalation in the u. S. Confrontation with beijing and people familiar with the situation say u. S. Officials are said to be concerned about from ant and tencent, they could give china access to banking and personal data of hundreds of millions of people. Exploringf restrictions was reportedly discussed last week in the white house situation room. We are not sure if the proposal where the idea has been formally proposed to the president. That key sticking points would be defined as the appropriate approach to do this as well as a legally sound one. The Trump Administration has received brushback from two Federal District court judges in the attempt to ban tiktok and wechat in the United States and is seen as a bigger target, the crown jewel of chinas rising innovative economy, even more so than perhaps huawei, which has been in the trump targets. Affecthow will this then that potentially recordbreaking worlds biggest ipo . Wouldn any trump action cath a dark shadow over the ipo where many investors are lining up to invest billions in what could be the worlds biggest ipo. It could hit the market as soon as later this month. They are seeking a valuation of 250 billion, that is twice that of citigroup. The restrictions what impact u. S. Investors who have sunk millions into ant. Server like management, carlyle group, they are said to have invested 100 billion each into ant. Statement, out a when the speculation came out saying it is unaware of any Trump Administration discussions and its business is primarily in china and we are excited about our Growth Prospects in the china markets. The people familiar with the situation are seeing the concept is the Trump Administration feels it needs to act before the embedon, that as many as many restrictions on china as possible in the hope that somewhat stick if joe biden would win. Otherhe outbreak and domestic priorities, any measures are seen as unlikely before the election. Another fronts being opened up on the u. S. China difficulties. We are running out of words to call that. Starting to see an improvement companys ceohe spoke to bloomberg about antitrust recommendations and the Labor Department proposal on contractor classification. Regulation has been part of our history since day one. We are as much in the Transportation Business as we are in the Technology Business and transportation has been a regulated industry. We worked with california regulators to create a new category for regulation. It will always be part of our business. It is part of how we think about the path to profitability but we are basically moving forward on that path despite anything that is going to change in terms of regulation. How closely are you watching what happens next . This is the most broad effort by congress to do something to break up the larger companies. You are in one area and you are not really in a whole array of areas, so it is less. It is definitely going to impact the operations of bigger tech, of privacy, the amount of freedom that you have, essentially. The inquiry is focused on companies that are different from ours. We are in the Transportation Business. Scrutiny is important, competition is important. We have learned that by punching up. We have had heavy competition in the early days, people thought lyft could not make it and we have increased our market share as we have been more competitive. We are focused on what to be due, our mission to improve peoples lives and i think scrutiny is needed, especially at times like this. One of the places you are being scrutinized is this issue of how gig workers are treated and i know you make the argument that many of your drivers work parttime and that puts them in a different category. What will happen if some of these moves go against you . If the proposition in california goes against you, what does it mean for you . Is less opinion important than the drivers opinion, drivers want to remain independent contractors, maintain the flexibility. Than 200 drive less hours a week. We think there is a better way forward than saying everyone should become employed and that way forward is to say lets maintain the flexibility and add more protections and benefits like we are pushing for in california. Drivingrs that were less than 20 hours a week, can you give us updated numbers on who is driving in the pandemic, how many hours cars are inservice and how it has changed . Ridesthe impact to us, being down 50 , they were down 75 . That impacts individual drivers as well. As you look at how some drivers have shifted, we have higher Driver Earnings now than even prepandemic because there is an equilibrium between demand and supply, riders and drivers. That was don zimmer speaking to us earlier. Lets get you a check of the latest headlines. Citigroup is to pay a more hundred trillion dollar fine a more than 400 million fine. They must have clearance before making more acquisitions. Chevron has topped exxon mobil as the largest oil company, the first time exxon has been dethroned. The ghost gave chevron a market cap, fractionally ahead of exxon. Policy where weighing changes to a program before the break down all the latest round of stimulus talks. Ofdiscussed the prospects stimulus policies to be possible before the elections, that is coming up next. This is bloomberg. Watching daybreak australia. A new stimulus package is on hold but nancy pelosi seems to be open to Airline Relief demanded by President Trump. After a call with stephen mnuchin, nancy pelosi said republicans blocked such a bill last week and called for more talks. Airline stopped rose sharply on the news. Stocks rose sharply on the news. President trump is back in the oval Office Despite continuing to being treated for covid19. Dr. Say he has not experienced symptoms in 24 hours, having been discharged on monday. President trump has been speaking on his experience and said he did not have to go to hospital but did so on the advice of medical experts. Fromgot back a day ago walter reed, i spent four days there and didnt have to, i could have stayed at the white house but the doctors said because you are president , lets do it. I said, fine. These are great professionals. A new report says the coronavirus pandemic is expected to raise global poverty for the First Time Since the financial crash in the late 1990s. They say covid19 will push 100 Million People into extreme rising with the total potentially 50 by the end of 2021. Organizers of the Tokyo Olympics say they have found almost 300 million in cost savings. The report simplifies the events and will represent 2 of the official budget. Order indicated the true cost of the games may be as high as the number. Shery lets look at some top calls. What are you watching . Week, therly this focus on chipmaker nvidia had a key event. Following that event, analysts are positive on nvidia in the wake of it announcing new products and forecasting, upgrading its price target. Highlighting the pace of innovation for the company. And analog stocks space gained nearly 90 of on and with newility smartphones and videogame consoles on the horizon, that is aiding this drop. We saw u. S. Small caps outperforming. The conditions could be emerging for outperformance. Opportunity materializing, he joins the. Lass halffull he is turning bullish on small caps over tech, but some optimism from a famous wall street bear who sees risk mounting. Stretch. E a rough there is a chance that a breakout for small caps needs to go out like we saw last summer. Are we seeing signals when it comes to the u. S. Growth trajectory . From a in a recent note macro strategist, they see weaker relative growth relative to the u. S. City recommending going short of the euro even though we are seeing positioning for the common currency. Yet iscy market is not yet convinced that it will the blue suite sweep at polls. Out tesla. Before fiscal talks broke paula makers policymakers were asking if they need to buy more bonds to underpin the economy. Lets get to kathleen hays. The bond market has been betting on some kind of move to boost stimulus. What more did we learn from the minutes . Considering it seriously. They are not saying they are about to walk down that path but it does confirm that once you get the key rates to zero, what more can you do to stimulate the economy . Perhaps fiscal package an impossible deal until next year, that extra fiscal stimulus, even before the fed knew that was going to happen they were discussing this. This is kind of disappointing, the bond traders are going to hold their bond purchases at steady. Doing is looking, how are we going to get Inflation Higher . Help,onomy does need more acknowledging the lack of fiscal support would be a problem. Cleveland fed president said she would be looking to look at it as one of the things the fed could do. Important, the policy statement where they put out there new inflation average targeting framework, cant move until inflation is above 2 . Apparently there was a lot of discussion about if this was the right way to go. Bloomberg economics writing, the outlook is so uncertain, the fed had to wrap this into the minutes because it is hard to say what the put pandemic economy is going to look like. This outcome Forward Guidance is unconditional commitment to a particular path. We would like to know more what that meanspirited guess what that means. More what that meanspirited what that means. They will continue to assess these tools be rated higher employment, inflation, good news since the economy is recovering but it is nowhere where the fed wants it to be. The minneapolis fed urging washington to move fast. Bankruptcies could happen, you need more stimulus. Saying, thefed also economy depends on getting more fiscal aid and he says they could do more acid buying but he buying,ed the need for buying. On friday, kathleen will be speaking exclusively to the dallas fed president , you dont want to miss that. Up next, the highstakes showdown between running mates just a couple hours away. We will discuss what to expect from the debates. This is bloomberg. Romaine on thees rise in the u. S. With the capital seeing a surge that coincided with a growing white house cluster. Experts are pinning their hopes for now on antibody treatments including an experimental therapy. Rick davis spoke to was about how they plan to get the drug out as soon as possible. We have submitted a request for an agency use emergency use authorization. We disclosed more of that today and we did that because we think there is evidence that the medicine is safe and particularly in highrisk individuals, those that have suffered from obesity, there is a Significant Impact not only on knocking back the viral load but also on hospitalization events and we know too many of our Senior Citizens and those in highrisk are going to the hospital. We also announced combination data on that same antibody plus another one which appears to work in a similar way, perhaps slightly better. The problem is we started making a single antibody earlier so we have more quantity this fall and we want to put that to work rather than have it sit on the shelf. We would like to ask the fda to release it so we can help more people. Talk about manufacturing, distribution, how easy is it going to be to get it out to the masses, how much harder is it to produce insignificant quantity versus a vaccine . Dave it is a challenging space. Amongst the kinds of things we make for medicines in general, monoclonal anybodys are some of the more antibodies are some of the more expensive. In this case, they could be used and a lot of people but constraints will be supplied. We had mentored a number of Companies Working on this, we hope they all succeed because we need all the supply we can get. There are many more pages than doses be good supply. The key will be to engage the whole of the system and we have collaborated to use their capacity, that is great. Drug Companies Teaming up to bring more to the fights. Then use the lowest dose is possible that can still be successful so we can spread that volume over more patients. One advantage is it is a relatively low dose. We steadied up seven grams, there was no difference. We are confident that the bloomberg oath can go a long wait and we said we could treat up to one Million People this fall based on the production we started in the spring in several of our factories. Where are you thinking on pricing and argue talks with operation warp speed . Dave we have been in talks with operation warp speed, all the Government Agencies in the u. S. And in other countries for some time. Is we are say following certain principles. The first is patients should pay almost nothing for nothing. I think that is a benefit of working with the federal government in the u. S. And other governments so they can make this not a hurdle for patients, their financial means. Price pointhe should offer shared values so we are not seeking to capture all the value. You have less costs, that will be shared with the Hospital Systems and the government and we will produce value in the system immediately. That is a goal and setting the price. Finally, we are going to price our ability to pay around the world, not by selling it to the highest bidder. We will allocate quality based on where the disease is. Thoseeurope, japan, entries will pay a higher amount which will recoup some of our costs, then lower Income Countries bill pay less. The poorest countries, we hope to have a philanthropic approach where we give away our ip and make it cheaply. Look for announcements coming up on that. Ceo speaking to us earlier. Lets look towards Salt Lake City where the Vice President ial candidates are gearing up for their only debate. Joining us to tell us what he expects is terry haines. Great to have you without. Us. Reat to have you with Vice President ial debates tend to be a sideshow. Is the fact that we have seen President Trumps health come into focus giving this that heightened attention . Terry thanks for having me. That is half of it, yes. I think the trump covid drama from last week and still ongoing is a good part of it. The other part is Vice President biden is not a Spring Chicken there haveis 77, and been concerns and there are concerns among the electorate that he might not be fully there. Be, 60 k he might not think he might not last through his first term. Voterse the markets and both watching this debate thinking to themselves, which one of these people is likely to become president in the nottoodistant future . We have had Vice President ial debates in earnest since the late 1970s, i am not sure we have had a situation like this before. It is a big moment. Continuede pence has to lead the Coronavirus Task force and the handling of the pandemic. How much pressure is he under to be able to respond reasonably to that line of questioning . Terry i think he is under a fair amount of pressure. What he needs to come out of this debate with is the idea that he, as opposed to senator harris, is the same pair of hands. Going into this debate, he might carry that off. He has been consistently supporting the trump agenda which markets think is positive and he has longer political experience and media experience. Criticism ofime, the covid responsibility front and center in what senator harris hopes to achieve as it is front and center in the biden harris playbook. As he speak, we are hearing that nancy pelosi and Steve Mnuchin had a call on the airlines bill and they will be talking tomorrow. Despite the fact that you said the Vice President needs to show himself as the safer pair of hands, what you markets think about the possibility of getting a bigger, better stimulus package if joe biden is the new president . Have ai think markets hope for that. At the same time, markets have been pavlovian on the idea that stimulus is coming from washington. Markets and washington opinion diverged so much. I have not thought for a month, month and a half that a large stimulus bill had much of a hope preelection. So far, i have been correct, but that has been the opinion of most political people, but markets continue to talk themselves into the idea that one is coming. If you get anything from washington preelection, what you get is piecemeal kinds of things like airline bailouts. But is well and good, markets have also talk themselves into the idea that joe biden is a shooin for reelection and i dont think that is a case at all. The battleground states where the election is going to be decided, joe biden is running only about as well as secretary clinton did four years ago, almost precisely down to a 10th of a percent, and we know how that turned out. This election is closer than anybody things and markets are putting their hopes in a President Biden large stimulus package, it is too soon to put your eggs in that basket. Shery lets talk about the swing voters because before the president backtracked today, yesterday, he ended stimulus talks. One reason was he wanted to focus on the Supreme Court nomination. How important will it be for senator harris to emphasize the fact that she wants to keep , howcare, keep roe v. Wade will this resonate in those swing states . That taking the aca and roe points, i think what those both are are shoring up exercises. They appealed to the base, they dont appeal to swing voters as much. Who are as much or more concerned about economics. Probably nine out of 10 voters that have already made up of already made up their minds but the other 10 have interfered havent. Involved ins are those cases in shoring up exercises. The Affordable Care act does not affect the large mass of voters so it is a sympathy play as much as anything else. What the president has been doing, which i view as consistent down the line, is saying, what im interested in is providing covid relief and what im not interested in is bailing out cities that have been spending too much, and that is what the democrats want and have hung the stimulus bill on. What we need to be doing is what you will end up seeing is a debate on the merits of those two contentions. Shery great to have your insights. We will have special coverage of the debate from 8 30 a. M. In hong kong, 8 30 p. M. In new york. Coming up, cities risk issues mounts, the bank hits with a 400 million fine and sanctions over it Risk Management deficiencies. The details ahead. This is bloomberg. Citigroup shares sliding after the fed ordered it to fix risk control issues. It was also fined 400 Million Dollars by another regulator. A staffrgo has begun reduction that could eliminate tens of thousands of jobs. Which wast with citi, quick issuing a statement. Statement out with a that has significant remediation projects already underway but agreed to pay that for a hundred Million Dollar sanction and submit to the deadlines and directives. The stock sinking as much as 2 on the news. The bank was fined by the regulator for what the agency called failure to establish effective Risk Management and governance programs and internal controls. To get is requiring citi approvals for any deals or significant acquisitions. The fed issued a ceaseanddesist order that requires citi to correct the practices and give a series of and gives a series of deadlines and report back on how it is fixing these issues. It has to report back in 120 days, it had to submit a report on how it is Holding Management accountable, it has to show out show how it will be consistent with this. Says it has made progress and recognizes subnational improvement substantial improvement. We continue to hear about job cuts across the financial sector. There is a lot more to come. It is the size of these reductions is significant. Wells fargo starts a multiyear costcutting effort that could result in job losses of tens of thousands. They are starting now with cuts of more than 700 jobs in commercial banking, that affects positions across divisions, and according to executives, most Bank Functions and pretty much cut across all business lines. Wells fargo was the first to resume cuts. We know many of the banks had halted layoffs as the pandemic began and shutdowns put a lot of jobs in question and to restore peace of mind to employees. They halted reductions, blood wells fargo, jp morgan have resumed targeted reductions, part of 30 banks around the world that are planning tens of thousands of cuts. Exception,rica, an has been holding to his pledge to suspend any job reductions in 2020. Get a quick check of the latest business flash headlines. On disney to permanently suspend dividends and direct funds to its streaming service saying the company must adapt to a massive industry change. To disney ceoten saying that 3 billion of annual payments will be better spent on streaming. Facebook is tightening its rules about the u. S. Election saying it will ban political ads when voting ends if there is no clear winner. The suspension is semi to a plan google announced that aim to stop candidates and their campaigns from spreading misleading messages to voters. The market opened in sydney is ahead. 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. I hope my insurance pays for it. Can you tell me how much this will be . [cashier] 67. Sorry. Wait, have you heard about goodrx . Goodrx finds free coupons to help you save up to 80 on your prescriptions. Wow, i had no idea. [announcer] goodrx, stop paying too much for your prescriptions. Shery welcome to daybreak asia. I am shery ahn in new york. Haidi i am haidi stroudwatts in sydney. We are counting down to asias major market open. As a looks set to follow wall street higher on optimism that some kind of stimulus deal is still possible. Democrats say they are open to support for struggling airlines. Samsung is one to watch today. Third quarter pulmonary warnings are out