Fed call for urgent action. We are joined exclusively by dallas fed chief robert kaplan. And the debate, joe biden refuses to push back his next meeting with President Trump the white house rules out of virtual clash because of covid19. Quick check of the markets coming online, u. S. Futures right now up. 3 , after the close, we have the white house saying President Trump is open to Something Big or than the skinny bill. It has all been about optimism over stimulus deal, despite conflicting signals on capitol hill. We had u. S. Stocks in the regular session wanting to a fiveweek i. We have optimism on corporate will, adding to the positive tone. Eaton vance jumping after agreeing to be taken over by Morgan Stanley, more on that next the dow higher. 4 , nasdaq. 5 . Oil is gaining. 3 at the moment, climbing to its highest and more than a month. Opec now saying the worst may be over. Demandve boosted their and their crude outlook for the next four years at we have the dollar falling, and commodityrelated currencies leading gains against the u. S. Dollar. Check asian markets with Sophie Kamaruddin in hong kong. Asian it looks like stocks will go higher with the policy meeting a calendar highlight. From japan, we are getting wage data and Household Spending, i of that the yen trading nearly 8 aheadad to have that, low. At the yen trading there are more talks of sector consolidation, uvp forecasting gold hitting 2100 an ounce by next by december 2020 one. Goaltended for a weekly declined. Where watching rio tinto in sydney after the u. S. Commerce secretary backed its plan in arizona, wilbur ross saying it is critical timing given that u. S. Manufacturers are looking to onshore manufacturing, given supply disruptions. We have the chinese reopen upon us, futures heading higher over the course of the break, adding more than 2 over the past few days. So looking at a positive start for chinese markets, coming back online amid this bullish seasonal skew and expectations the chinese economy will continue recovering. And on the board, seeing how that plays out in hong kong, chinese stocks listed much consumerth tact and names, alibaba and tencent among best performers as we look for indicators consumer resilience is on the mainland. Are signals of more gains for the onshore rate, pboc later today and we have got a chinasprivate read on pmi as well. Also on the critical front watching for reaction trump might impose tariffs on china in his second term. Lets discuss all this deputy globaleet chief Investment Advisor lori heinel. We are headed toward an election and are not getting much certainty when it comes to the u. S. Stimulus package, do we have one, do we not have one before the election . Yet, the market continues to rally. What happens if we dont get another set of measures . Lori our call is that we will get a stimulus package, the question is how much and when. They continue negotiating down to the wire. We believe the economy needs additional stimulus to cover of the the worst cases slow down, and continued concerns about unemployment, etc. , but there is a lot of posturing right now. Both sides have different ideologies a father want to spend the stimulus. It is not a question of if, but rather win, and what the contours of the stimulus look like. That when acting to could not only take time, there could be lots of up and downs. In the meantime, how do you position when you have no idea what the path forward looks like . Lori for better or worse, it is hard to position against a day trade or week trade right now because the markets are gyrating. We think there will be a stimulus package, past most likely before the election, partly because both sides want to take some win back to their constituents, but we are still debt to the wire here. The thing we have been advising our clients to do is think through the election cycle, so what does it look like six months, nine months, 12 months from now . Because there is likely to be a lot of volatility. We have seen this before. We may not even have a certain outcome on election day. This may go into a situation where there are recounts and contested elections and things of that nature, so we are 20 encourage our clients to look through the election, think in terms of six, 12, maybe 18 months, and position in those areas where there are likely benefits from either valuation or growth. Things thatf the came out of the Vice President ial debate was this narrative that potentially, andre bidenharris administration, the trade war with china could be over. Is that something driving optimism in markets . Lori it is not our view that the trade war will be over. Because look, the whole idea of china favoring Certain Industries and not being potentially a good player on the global stage, that is a narrative that is still going to be with us. The difference though, is that a Biden Administration would be less likely to be so reactive, so there might be more certainty around how a Biden Administration would approach negotiation, and likely the opportunity for multilateralism, so it is not just a u. S. Versus china can patient, but rather getting other partners, and europe and elsewhere, who have a vested interest in in this vested interest in this as well so the tensions will still be there, but the likelihood of them being more managed and have more consistency in how the parties engage under a Biden Administration. Haidi you talk about raising protective hedges over the election risk, we are getting close to the election date now. In terms of how much you are raising liquidity and holding cash, what does that look like in a safe, opportunistic portfolio . Lori the way we have been managing risk is we have been close to home in terms of allocations. We are very slightly overweight risk to equity, but close to our strategic targets. But we are looking underneath the hood, so where are areas where we get relative value . In fixed income, we are favoring credit over sovereign bonds because there is no yield to be had in sovereigns. And those are areas that have been supported by fed intervention, for example. And when we look at the equities, we look at areas where there is tailwind growth, so we have been favoring u. S. Largecap equities, because we believe the Technology Story is largely intact. It has been less about holding cash and more about staying weight fromategic an assetallocation standpoint, and then finding ways to finetune under the covers those sectors or regions of where we think there are opportunities. Street deputy global chief Investment Officer lori heinel joining us. We appreciate your time. First word headlines, covid19 spreads around the world, forcing cities and lawmakers to impose expert restrictions. New york city is closing an additional 61 public schools, despite sometimes violent protests against new curbs. France is putting more cities on maximum alert and new lockdowns are under discussion in the u. K. The port of madrid has struck down a new lockdown in that city. The u. S. Is appealing a court ruling that blocked President Trumps ban on chinese owned video apps tiktok. Waseliminary injunction issued, the judge saying administration exceeded its authority. A parallel effort by the president to block tencent messaging services has also been blocked in court. The administration appealed that last week. The mood among japan merchants rose last month, adding designs the recovery is taking root. Storee of sentiment among managers and others in the Services Sector rose to its highest since april 18, welcome news for Prime Minister yoshida suga. One of his key advisors said he could an early election next year. Themp Administration Trump administration imposes new sanctions on iran. The move against 18 banks is aimed at cutting off the Islamic Republic from the Global Banking system until there is a new deal on its nuclear program. Previous u. S. Sanctions crushed the iranian economy. Those are first word headlines this hour. still i had cop ahead, an exclusive interview with dallas fed chief lori heine robert kaplan. Dont miss that interview in our next halfhour. But first, House Speaker nancy pelosi says there will be no aid for airlines without a broader stimulus deal. Our exclusive conversation is next. This is bloomberg. Speaker nancy pelosi says there can be no standalone bill eight airlines or others without a stimulus package. She spoke exclusively with bloomberg on where negotiations stand and President Trumps strange tweets. Speaker pelosi the president is in, shall we say, an altered state right now. I dont know how to answer for his behavior. But that doesnt we would not try to narrow the differences. A lot of work has gone into it. We would not have committed all of that time, and time is everything. It is life. It is life. We are trying to save lives. We are not going to be enablers of more people dying because we walk away from the table. We are there and i hope that they will be there. And i think that we have no alternative but to work with the secretary. But he understands the challenges. We have a difference of money in certain places, but the difference in language is also something i believe we can resolve. Butill take compromise, that is what a negotiation is about. So i have confidence in the secretary. I have confidence that the president does too, and i cant answer for the president s behavior. You talked about the altered state of the president and said the public needs to know the Health Condition of the president. You have questions about his capability to serve in his office . Speaker pelosi what i said about the president was, we if somebody i have quoted others who say that there are those who say that if you are on steroids and have covid19 or both, that there may be some impairment of judgment. But that is for doctors and scientists to determine. Strange, really surprising, and i am rarely surprised, when the president took to the tweet and said he wants the senate to have full focus on his confirmation of the justice, and earned attention away, so we are stopping and turned attention away, so we are stopping the negotiation. He will do anything in his power to overturn the Affordable Care act and take away the preexisting conditions provision and all the other things in the Affordable Care act. We know that. But for him to stop the negotiations in order to make the confirmation as fast as sible for somewhere to be for someone to be there in time for the november arguments in the Supreme Court to overturn the Affordable Care act at a pandemic. David i want to come back to the special situation with the airline industry. If i understand what you are saying, you agree it should be held separately, but it has to be part of an overall deal, it doesnt have to be one bill . So its possible to do something quickly for airlines as long as you have agreement on the rest . Speaker pelosi let me be clear. We want to help airline workers. The workers. We want to help the airline workers. There is legislation we have in hopeares act that we can continue for another six months or so, that expired at the end of september. Butan do that separately, we cannot do it unless there is a big bill. So it needs to be a part of the big bill, or it could be separate from the big bill from a timing standpoint. But there wont be anything unless we have crushed the virus. Shery House Speaker nancy pelosi speaking exclusively to bloombergs david westin. Lets get the latest on negotiation from our government reporter Emily Wilkins in washington. Emily, we have been getting conflicting signals when it comes to the future of the stimulus package. But we just heard from the white house, saying the president is open to Something Bigger than a skinny bill. Give us the latest on where we are, and how soon could we expect to see something . Emily all very good questions. I think yesterday, after we saw the markets fall after trump said he wasnt interested in having a deal, i think it made him reconsider a little bit. The president has always been focused very much on the markets pick today, we saw Speaker Nancy Pelosi and the white house may negotiator Steve Mnuchin have another conversation. They spoke on this pound on the phone this afternoon for 40 minutes per its of the does team to be hope for something comprehensive, but remember, the negotiations have been stuck since early august. There is still no agreement on how much money, no agreement on language, so that we dont need to come together and then they would have to go through process of voting on things. It would be difficult to see this done before the end of october unless the senate expedites it, and that would require a full 100 members of the senate agreeing to pass it. And we dont even know what it is at this point. Haidi we also dont know what the next debate is what to look like, if it is going to go ahead, complete disarray. Is it virtual, town hall, trump wants a rally, what do we know . Commissiondebate came out early thursday morning that they would hold a virtual debate because of safety concerns. Trump was right away, i dont want to do this, im not going to waste my time with the virtual debate. The Trump Campaign said, what if we moved it back a week in the Biden Campaign said, we dont think so, we want something on the 15th. So trump says he will do a rally. Abc news announced biden will do a town hall instead that night with one of their moderators, and that is where things are standing right now. I dont know if we are going to see more movement in the next week or so. I think it wase, particularly rough, especially trumpe listeners, but wound up coming out of that debate not looking very well. Polls afterwards mostly showed biden was the winner of that debate. Haidi our government congressional reporter Emily Wilkins in washington. We will have more insight when it comes to the upcoming u. S. Elections with former republican president ial candidate carly fee arena, joining us in the next a, coming upy fiorin in the next hour of daybreak australia. New, deals on a 7 billion deal details on a 7 billion deal. This is bloomberg. Morgan stanley has a 7 billion deal to buy eaton vance. It gets Brand Recognition and the Asset Management businesses, snapping up money managers. Speaking to bloomberg, ceo James Foreman says the acquisition was a nobrainer. Eaton vance has been around for 90 years, huge talents, very complementary businesses. There will be very little dislocation. High growth businesses with metrics that have been growing so thisstainability, was a nobrainer. We are joined by bloombergs Senior Intelligence analyst. James gorman said this was a nobrainer saying this was a nobrainer, did the deal come as a surprise . I dont think anybody had thought eaton vance was a specific target, but it is not a surprise they did a deal. We expected them to do more in wealth and Asset Management. The but the business of e trade earlier in the year, so this fits with their strategy of continuing to shift more of the wealth and Asset Management business and away from institutional securities. It has been a 10year shift. Now we accelerated that, have this transaction which builds on their smaller Asset Management unit that unit is a focused institutional unit. They have a great active equities business. What this brings to them is specific capabilities. Fixed income is an area Morgan Stanley has said they wanted to be bigger in so they get more fixed income, they get alternatives, another area Morgan Stanley wants to grow in. And then, unique capabilities. Esg is going to be an area of strength for the combined firm, and also the Customized Solutions business. So even though it is an industry that remains broadly pressured by fees, there are some Growth Opportunities and eaton vance seems to be in good spots. They how does this impact companys Capital Position . And has gorman hinted at anymore deals . Gorman said on the call today that this is it for a while, so they are basically going to take their time and digest these two larger transactions. The earlier deal, ameritrade added 30 basis points to their key capital ratio, so that was a positive. It is done, isr sort of pro forma estimated to take away 100 basis points of capital, but they are still 300 basis points above that core measure. For those not familiar with bank capital rules, that is a healthy cushion. They generally have had among the highest ratio across not just u. S. Banks, but also there global peers. Bloomberg intelligent senior banking analyst Allison Williams with the latest on Morgan Stanleys new acquisition. Lets check business flash headlines. Ibm is to spin off its legacy i. T. Unit as it takes its future to the cloud. The new business is currently part of the ibm Global Tech Services division and handles daytoday operations such as managing Client Centers and additional i. T. Support. And 16600 clients billion. Waymo says it is ready to open its driverless ridehailing service to the general public in arizona, after a more of after more than a year of testing. Beganbecame suburbanwriters around phoenix in 2019 and is now making it available to all users in the city. Ahead, our Global Economics and policy editor joins us with it big yes. Kathleen just days after fed chair jay powell gave his strongest appeal yet for more government aid, another key take on the fat on how much this stimulus could further derail the u. S. Economy. We discussed that and more with dallas fed president robert kaplan. His outlook for growth, fed bond buying, the shape of the recovery. My exclusive interview with him is next. This is bloomberg. Kathleen this is bloomberg. This is Kathleen Hays in new york. I would like to welcome you for an exclusive interview. Robert kaplan joins us from dallas days after jay powell called for urgent fiscal stimulus and which has failed to materialize. Thank you so much for joining us. Able toays great to be talk with you, particularly now, because powell said tragic consequences if there is no stimulus. President trump rejected the democrats bill and said they rejected the talks themselves. If we do not get stimulus until february and march, if it does not happen until after the election, is this something that could drain enough out of the economy or not refuel it enough that it derails the recovery thats underway . Robert it certainly creates a downside risk. The unusual things about this downturn is normally, when you have a severe downturn, Household Income falls off and Consumer Spending falls off and then you get sort of a downward cycle. We did not have that here. Even though we had a severe downturn, Household Incomes stayed relatively steady and Consumer Spending stayed strong. It shifted but it stayed strong. , for the year, the u. S. Is going to wind up having a less serious contraction than other countries. We have been getting more optimistic over the last couple of weeks that u. S. Gdp will contract by Something Like 2. 5 for the year. That is a much better performance than other countries and a big reason for that is his fiscal relief. On employment benefits, income relief. So right now, people are still spending, but they are doing it out of savings from the benefits they have received. I think people have in their minds that something is going to get approved at some point. If that were to not happen at all and people got that idea, i think you would see it show up in Consumer Spending and we would start to have the dangers, we would start to have the falloff we normally see in a downturn and that may lead to other negative effects that will meaningfully slow the economy and that is what we are watching for and concerned about. Kathleen is it possible that as one of your colleagues said, that there really is enough stimulus that when you made your reserve plans, when the cares act was passed, when all this stimulus started at the beginning of the year in march, people were assuming an even bigger downturn. 14 of gdp and spending was allocated. Now, its not as weak. We are still going to spend the same amount of money. Is it possible we are maybe a little bit too worried about this and the economy can keep on the same track you are talking about . Robert my own judgment, and this is one of these things we will know better in hindsight, how long the relief lasted, i would guess we are going to need some additional relief at some point here. Could we go on for a while with that additional fiscal stimulus . We could. Could we go on indefinitely . I would guess you are going to see a weaker recovery if that were to happen. That would be my judgment and our judgment here at the dallas fed. Kathleen lets say theres no stimulus for several months and the economy does need some more help, or it seems like the prudent thing to do, what about bond purchases . That was the subject for debate at the last fed meeting in the middle of september. Cannot cut rates more. If you have to do something, bond traders are saying that will be forced to buy more bonds in much larger quantities potentially. What do you see . Robert i dont see that right now and heres the issue. Of all the issues facing the u. S. Economy, one of the problems we are having is not that rates are too high. Term rates along the curve are historically low bond buying is done in order to further depress irm rates, and at the moment, dont see that as the issue or a significant issue. It may become one later but it is not one right now. The problem is this, the fed has a lot of tools, and we have more things we can do, but our tools primarily ease financial conditions. They make it easier to borrow money. Our tools are not wellsuited when you have an income loss and we need to make up an income loss. Theres two areas theres individuals that have lost their jobs who have lost income. There are states and municipalities that can borrow and are using the private markets, they have a fiscal toe and they need balance their budget and they need to cut expenses if they dont get any relief because they have a fiscal hole. Borrowing more money will not solve their problem either. Im sure we will look at all of our options. Those are not substitutes for fiscal policy. Kathleen how about fixing the composition of the bond purchases that are in place tomorrow longer dated bonds . Robert if you look at the 10 year and the 30 year, could they be lower . Yes. Is it an impediment to business operations, investment, mortgage rates, they are historically low. I think we have to recognize that we are already buying a significant amount of bonds as it is. I would be skeptical about the benefits of doing more myself. Kathleen quick question on this debate going on. The fed will be talking about this more seriously. Esther george said the fed needs to give details on guidance when it comes to the feds intentions when it comes to bond purchases to ensure effectiveness, transparency, accountability. What is going on here . What is the question you guys are grappling with . Robert i will speak for myself on that. I think we are buying still a substantial amount of bonds every month. Treasuries and Mortgage Backed securities. I think we could say more about what our plans are going forward, but my own view is i, right now, would be hesitant to see us doing more in that area because i do not see the benefits. I can see how it would further add fuel to the Financial Markets had i am more skeptical how much it would help the real economy. Kathleen i got to ask you a question that struck me coming out of the minutes because the minutes said the new outcome based Forward Guidance is not an unconditional commitment to a particular pass. I thought you guys just said you said the fed will not be moving rates until inflation is at 2 and moving higher and your maximum employment. Now it sounds act there is some flex ability there. Was this a compromise that had to be reached for you guys to have a new Forward Guidance . It seems vague and not clear even though you said recently theres plenty of clarity on this new framework. Theres plenty of clarity for the next 2. 5 years to three years on the path of rates. I think theres going to have to be judgments made on what we do beyond the next three years but i think it will take us that long to whether the pandemic and get the economy back on track and until we have done that, rates are likely to stay where they are, but theres another paragraph. There is the paragraph with the Forward Guidance or enhance Forward Guidance and theres another paragraph after it which is worth reading which talks about Financial Stability and a whole range of other issues going on in the economy that we are going to be cognizant of and my own view is we should be cognizant of. Will always be people who say they want more clarity, transparency, but i am a business person. I have been watching the fed for most of my adult life. We have got pretty good visibility on what the path of rates is for the next few years. There may be some debates about asset purchases. I think theres decent visibility there also and i think you want the fed to have the ability to use its judgment and adapt to overall conditions. Kathleen why is 2 so important . You just mentioned the financial risks. That was part of your dissent. Unemployment got down to a 50 year low. Gdp was growing near trend. Does really matter that much to get to 2 , especially if you will take the risk of financial risk on your plate as you do so . Robert to me, and they have said this, i much more interested in Financial Stability. We dont want deflation and we dont want, we dont want inflation running away from us. What ideally you want is Financial Stability so people buy goods. Ut and businesses can transact and not worry that we will either have an extreme deflation or inflation. I think it is wise for us and i support us reanchoring Inflation Expectations at 2 . For me, the 2 by itself is not magical. It is indicative of price stability and i think that is what we are shooting for. Have been saying, a lot of you guys have been saying this is the top of the list. Where do you see the virus now . You watch a very closely. Do you have contact yourself, scientific, you know, epidemiologists, everything. In a nutshell, where are we . Robert i would say we are at an uncomfortably high level of virus right now. Thewe are heading into winter. We are heading into flu season. Of the most epidemiologists and Infectious Disease experts are worried that we are starting the fall at an uncomfortably high level, and their worry is that this high a level, if we dont really show discipline in mask wearing and health care protocols, that we could get a manageable situation in some locations. I am hopeful about a vaccine, better there peter asked. I think we will have to really be disciplined in the meantime and probably for a good part after we get a vaccine to wear our mask, follow the protocols, and respect this virus and respect each other. The dallas fed mobility and engagement index you guys came up with this year, it looks so into string interesting. Right now, what is it telling you . Witht it is consistent the virus. We are stalling out in the low to mid30s so just to give people an idea, zero is the best possible score. That is the level of engagement in february. One is the worst. That is what happened in april. We recovered quite a bit of the way, but we are hanging around in the 30s. We are showing a little bit of improvement. The improvement is decelerating and you kind of see that in the claims numbers today that we are getting better, but the rate of improvement is slowing. Is incidence of the rhymers probably a big factor as to why we are improving, but the rate of improvement is stalling out of it. Kathleen main Street Lending facility, you commented on that today. You said that it does need to have changes, like using credit requirements, but that is up to treasury and congress. Can the fed is there nothing the fed can do to fix what is holding it back from being a stronger source of lending and stimulus, especially if we may have to wait for it to get more from congress . Robert the other 13 fed programs on the Public Markets i think are working very well including the Municipal Program where theres plenty of borrowing in the private market and the fed backstop is encouraging that and encouraging flow of funds into those markets. It is good the fed is not being used as much. The backstop is serving the purpose. On main and ppe, in talking to Small Businesses, we could use more another round of ppe would be useful. On the main Street Program, is not that midsized and Small Businesses are not borrowing from their banks, but the banks have decided i was talking to a banker today. We are lending to those companies. We would rather not do it through the main Street Program because we want to keep a higher than 5 share of the loan. We like the loan. On loans we dont want to keep, we are not going to use main street because we dont even want to keep 5 alone. Will needing that we an ease in the financial terms of that, may be in the refinancing terms. Its not Like Companies are not borrowing. Bankers and companies are doing transactions. The problem is, for those companies that would want to use main street, they are usually weaker credit and that is the dilemma. There is no getting around, you need some credit softening. That means greater loan losses. Robert i want to wrap kathleen i want to wrap up with a big picture question. Modern monetary theory, you would be more inclined to buy bonds if yields were rising. You dont want yields to rise to much because the government has to have someone buy their bonds. That seems like a part of monetary theory. Has the fed been sort of dragged by circumstances into doing just that . Robert so this is why it is very important to differentiate what you do in a crisis and what you do post crisis. Its very important to delineate. In the middle of a crisis, we do 13 programs. They need to lapse as the crisis wanes. We have bond buying that we are doing, for a number of reasons. But when the crisis starts to lapse and we have weathered it, i personally would be an advocate of withdrawing these programs. The Bond Buying Program needs to curtail. The fed Balance Sheet growth needs to curtail. Its healthy for the markets to be addicted i dont think its healthy for the markets to be too addicted. It engenders fragilitys and its always wise to keep that in mind and i will be actively keeping that in mind as we go through this. Kathleen robert kaplan, thank you so much. Forward to doing it again soon. Thank you so much. Robert thank you so much. Kathleen back to you. Haidi lets get to the first word headlines this hour. More debates between President Trump and joe biden are in some doubt as the Democrats Team is rejecting a white house proposal to push them by a week. The president rejected the idea of a virtual event, saying the idea was aimed at boosting his opponent. Bidens campaign proposed shifting the second debate from the 15th to the 22nd to accommodate for the president s recovery. Stimulus talks remain gridlocked in washington. Steven mnuchin and raised the prospect of reviving negotiations with nancy pelosi. The approach came after President Trumps call for special relief for airlines. The speaker is ruling out a any sector of the economy without agreement on a broader seamless package. I want to help the airlines. There is legislation that we had in the cares act which we hoped we could continue for another six months or so. Oft expired at the end september. , butn do that separately we cannot do it unless there is a big bill. Haidi the senior republican on capitol hill says he has been avoiding the white house for weeks because of concerns about coronavirus protocols. He says he has not been there since early august as the administrations approach to the virus differed from his in the senate. Mitch mcconnell adds some people at the white house are paying the price for not Wearing Masks and not social distancing. A check on gaming activity in macau. Gross revenue is down 76 from a year ago. Casino activity in the first seven days of this month, the results are disappointed but not disappointing but not an expected. An analyst sees macaus gaming revenue falling over 70 this fullyear before a robust recovery through 2021. And those are your first word headlines. Shery we have plenty more to come on daybreak australia. As we head to the open this is , bloomberg. Shery time now for morning calls. Lets get back to sophie in hong kong. We have been tracking some notable views. Gaming stocks has been have been trading sideways. What is the catalyst for rebound . Sophie ahead of the holiday season, we have seen preorders for playstation 5 and the xbox coming in sold out pretty much everywhere ahead of their november release and he says that this supplychain constraint will spark renewed interest in nvidia, games, etfs. People try to get life back to normal. The last big council upgrade was in 2013. They outperformed the Broader Market for at least 24 months. Turning to japan, sugas push for price cuts is expected to dent profit. What does that mean for consumers . Sophie if he is successful in getting mobile fees lower by 40 , that is his target. A challenging one indeed. Goldman sachs, by their estimates, this would be similar to a 2 cut in the consumption tax and this would be a policy win for suga, who could get a popularity boost. Later this morning, we will get a read on Household Spending from japan along with wage data, so watching out from that. For that. Shery what is something investors are watching . To watch ony stocks our radar is solar stocks listed on the mainland, keeping an eye on them after we saw their Hong Kong Listed peers rally this past week on policy optimism triggered by xi jinpings push to go Carbon Neutral by 2060. Ofs would require investment 5 trillion to 60 trillion, concentrated in wind and solar generation. Their premium has been narrowed. Sophie kamaruddin with morning calls. Opec is forecasting boosting supply forecasts, hoping to emerge from the pandemic with a greater market share than battered rivals. The secretary general said the worst seems to be over. Covid19 is largely contained in the coming years. Oil demand should partly recover. Increased by almost 10 Million Barrels a day. In Million Barrels per day 2045. Get more on this from jessica summers, who joins us from new york. There are a lot of assumptions being made. What was his justification for the optimism . Opecs comments were quite interesting and it comes at a time of a lot of uncertainty in the market, especially around the demand due to coronavirus but also opec is planning to boost output over the next few months. That is quite concerning in terms of whether or not we will see a sustainable rally in crude prices from these levels. We also had some idiosyncratic news affecting oil prices including a hurricane here in the u. S. Jessica that is exactly right. At is the biggest that is the biggest concern. Mexico producers have had to quickly shut in, prepare for this hurricane, which is a category two. So far, golds operators have shut in nearly 92 of crude output and just over 60 of natural gas output. We also have ports in the fort arthur sector. Beaumont and charles will be shutting tonight. We are expecting limited crude output in the gulf of mexico and a slowdown in ship traffic as well which may tighten things significantly in the shortterm depending on how long the storm impact lasts and how quickly they can ramp back up. Bedi obviously, there could some supportive factors when it comes to the supply side. What about the broader demandside given so much of the mobile recovery hinges on stimulus efforts continuing, Monetary Policy staying loose, but probably most importantly, a vaccine coming through . Jessica that is a interesting point you make. There are so many factors in the market and it has pushed and pulled the demand recovery in different directions. Right now with the concerns over the supply side of opec boosting output at a time where coronavirus cases are increasing around the world, governments contemplating implement ignore lockdowns. It really poses a concern for Energy Demand moving forward. If we do see renewed lockdown site we are seeing in some u. S. States, in and around europe as well, that does take an impact there. Demandeake w energy we will see Energy Demand weaken again moving into fall and winter here. Shery jessica summers joining us from new york with the latest on oil. Lets get a quick check of the latest business flash headlines. It soared on news Morgan Stanley survived on mutual funds for 7 billion in cash and stock. Shares were up 50 with the offer price at a 38 premium to the previous close. Also expanded the Asset Management does this as big players continue to gobble up small and mediumsized money managers. Antacart is cashing in on appetite for ecommerce during the pandemic with the latest funding round to seeing its valuation rise to almost 18 billion. The grocery delivery startup has doubled in value since the march outbreak and is weighing a possible ipo. Instacart says it is on track to process 35 billion in grocery deliveries this year. It is available in 85 of american homes. Mcdonalds returned to growth in its home market and global sales are still weak as the virus pandemic continues to Royal International roil international operations. Global sales however fell 2 in the period. Mcdonalds shares were little changed after closing at a record high on wednesday. Haidi coming up in the next hour of daybreak asia, the Investment Management portfolio manager, lewis lau, joins us. Chinese markets come back online following the golden week break. We have the market open in the final friday session, coming up in sydney. Do we see them continuing this break streak away from the range bound sessions we have seen in the past few months . We are seeing upside for the aussie dollar. 71. 70 three, trading this morning. This is bloomberg. Oomberg. Haidi very good morning. I am haidi stroudwatts in sydney. We are counting down to asias major market opens. Shery im shery ahn in new york. Welcome to daybreak asia. Investors weighing stimulus possibilities in the u. S. After wall street closed at a fiveweek high. Traders are watching chinas return to trade after golden week. At odds in remain washington despite theed
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