Back to an eight day holiday. They are putting much playing catchup. We have gains across the board. Shanghai is up 1. 6. These services pmi rising for a fifth month. The you on getting 6. 73 versus the dollar. This was stronger than expected. This is a weak dollar story. Some yen strength there. The bank of canada governors has negative Interest Rates remain an option. Courts seems like a lot of the action is in the shanghai markets here today given that robust reopening after the eight day holiday. We will speak exclusively to the Everest Medicine ceo. This is 27 right now in its debut in hong kong. The Trump Administration signaling that the administration is again leaning toward a largescale stimulus bill. That comes after nancy pelosi pushed back on the idea of peace for a. She is excepting refusing to accept help for airline without wider bill agreed. We want to help the airline workers. There is legislation that we had ed the cares act that we hope we could continue for the next six months or so. That expired at the end of september. We can do that separately but we cannot do it unless there is a big bill. To the latest on the stainless negotiations. Jodi schneider here. There seems to be so much back and forth on this. What is the latest on the shift we are seeing from the president . It has been a lot of backandforth. We saw the president just a week , basicallye hospital to do that if you wanted something, he would get this done. Clearite house made it the white house was not going to negotiate with trump pulling his negotiators out of those talks. Whowe have Steven Mnuchin just had a call with nancy pelosi, a 40 minute call saying that President Trump wants an agreement on a conference of stay most package. This comes after nancy pelosi said they did not want to do a. Iecemeal approach they wanted a big bill. The republic the democrats wanted to . 2 trillion. Whether this can get done in the next before the election, this is a real question. This is against the chaotic backdrop where you have the president recovering from the coronavirus. We heard from trump today saying that he is not interested in a virtual debate. What is the latest on the subject. We have the commission on president ial debates insisting that the debate will be virtual. Take it or leave it, virtual. That leaves the future unclear. President trump has said he will not waste his time on a virtual debate. He went back to the biting Joe Bidensaid campaign and said lets push the debates back but the joe biden Campaign Said we will not do that. Behavior doesc not allow him to rewrite the calendar. It looks like virtual, take it or leave it. Towhat about when it comes tariffs on china . How has President Trump has he changed any of his views . He appears to be doubling down, vowing to punish china with tariffs if he is reelected, china to buyaused more u. S. Goods. Particularly things like these purchases. He will mix that in the future if he is reelected, that china will repay those tariffs. That was Jodi Schneider in hong kong. Yvonne lets get our first word news with Karina Mitchell in new york. Karina fed officials are telling the Trump Administration that or it is needed to aid the economic recovery. Without it, the rebound would be a lot weaker. Robert kaplan told bloomberg it is not time for more qe. He said the fed is unlikely to create large scale purchases as it would not do much to help the economy. To see us be hesitant doing more in that area because i dont see the benefits. I can see how it would further add fuel to the financial markets. I am more skeptical of how much it would help the real economy. Joined thes now World Health Organization effort to ensure the whole world can be treated for covid19. The Foreign Ministry invasion confirmed the decision. It is not clear how much money china will put into the project. It aims to give lower Income Countries the same access to vaccines as welfare nations. The u. S. Has not taken part. The mood among merchants in japan rose last month to its lease pessimistic in more than two years, adding that the recovery is taking root among store managers, taxi drivers and others in the services sector. It rose to a ties level since april of 2018. The news will be welcome and one of his key advisors says he may call an early election next year. Global news, 24 hours a day on air and on Bloomberg Quicktake. More than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. Yvonne fed officials keep up pressure on the Trump Administration to renew fiscal support. Maxlinear max k l causes ask max how this confusion over the dollar. The hong kong dollar surging 26 . Chard blanc chard blan will join us after the break. This is bloomberg. The chinese biotech room has made its debut. Drugs overon discovered or marketed overseas by the chinese by licensing, developing and commercialization. Health care ipos are enjoying a record year here in asia. Streak showsows no sign of ending. They have secured 16 cornerstone investors including gic, blackrock and hillhouse. Kerry is joining us. Before this listing, you did quite a few rounds of financing already. One of which that was quite remarkable in the middle of a pandemic. Walk us through while you tap into the Public Markets now and why in hong kong. Kerry great, thank you for the opportunity, happy to be here. We believe that hong kong, toause of its proximate he the China Mainland and being in asia is incredibly important for us. We want to be close to the patients that we serve and to we provideans innovative medicines to. Hong kong over the last two or robustly. S has grown had 154, maybeve 150 pharmaceutical companies that are listed. The Pharmaceutical Companys have done quite well. Yvonne you have a drugs in your pipeline right now. A Fresh Company here. There inill not quite terms of a commercial stage, what can you tell us in terms of timeline that you can start to generate some revenue . We expect our medicines will have two that will launch. We expect to file an nda promptly at the beginning of next year. Yvonne what are you seeing in terms of appetite from the u. S. And European Drug commercialization in china . In terms of interest, what are you seeing . Kerry they are really best served by innovative medicines. When we do this, we go to the companies that have assets that would 50s critical, unmet needs. We help these Companies Understand the importance of china. The reception has been quite good. You have 8 partners. The partnerships are strong. These assets are many times the. Rown jewels oftentimes, the disease in china is bigger than it is in europe or the United States. About yourus strategy and your expansion plans. Ever since they made headlines deals,l, in terms of what are the prospects . What are you looking at . What makes sense . Kerry this has been a medicine that has been validated in many ways. Our upfront was 65 million. The milestone for approval in the u. S. Was 60 million. I am sure you are aware that gilead is in acquisition mode with this and the Public Information least as they are for 21 billion for the company. We believe this is a great comparison for what the value of this medicine is. Breast cancer based on prevalence is the most prevalent cancer in china. We think the strategy of bringing this asset to china is very robust. Everests most advanced investigational drugs deal with drug resistant infections. How big of a priority is this for the Country Company . Priorityis is a big for the company. Resistant infections are life ending infections. These are very serious. The patients are seriously a, often in the intensive care unit. Antibiotic use patterns in china and Southeast Asia over the past 30 years, Drug Resistance has become a rampant of the isolates for this pathogen are resistant to most antibiotics. Unmet need in china. We are bullish about our antibiotic portfolio and the antibiotic portfolio where we had three different classes of antibiotics. They have all been successful in the past. They all have characteristics that could make them best in class. We are very excited about this for china and asia. I think we have also seen with covid, the importance of Infectious Disease in the world. That the multidrug resistant pathogens would spread across the world. You mentioned a few of your drugs they got approval in the u. S. Extent do you think these drugs can actually succeed . That you can ashley get a decent chunk of the pie in some of these developed nations . Actually get a decent chunk of the pie in some of these developed nations . The best in class characteristic of the molecules will drive the uptake. The physicians in china, when we speak with them, they constantly tell us that there is a need for a new and more powerful antibiotic, we have patients that have no options. Therehe past 10 years, have only been two medicines approved in china. We believe these are very important medicines for china and asia. Before we let you go, any plans to ipo in the u. S. . Kerry we currently dont have plans to ipo in the u. S. It is a great question. Portfolioe how our progresses and what new licensing deals we do in the future. Of course, we would like to have with our global scope molecule molecules. As early move forward and license these molecules, we will have the opportunity to join some of the global activities. Yvonne thank you for joining us on your very big day. Kerryas everest ceo, blanchard. Behington and beijing might sparring over everything but that has not stopped china from setting record ipos in the u. S. This is bloomberg. The lateste are business flash headlines. Advanced micro devices is in talks to by zylinks. The latest mega chip maker deal would follow a purchase, if that goes through as rivals battle for a bigger foothold in this market. They all must double this year as it looks to break intels stronghold on this lucrative market for data center components. Morgan stanley is to buy the mutual fund for about 79 in cash and stock. Shares were up almost 50 with almost a 3 premium. Morgan stanley gets Brand Recognition and also spans its Asset Management business as big players continue to gobble up small and mediumsized money managers. Facebook has pulled think accounts that were trying to sway Public Opinion in favor of President Trump. Facebooks network began in 2018 and was still working this year, criticizing joe biden and the democrats and praising the president and the republicans. The accounts commented most frequently on our the new york times, washington post, fox and cnn. The tiktok saga is far from over. The Trump Administration appealing a court ruling. Stephen engle joined us from hong kong. All the gyration. Where do we stand now . Some a development on this trumpet mr. Risch an effort to contain or restrict these chinese innovative apps in the United States. And wely on tiktok checked, there was a parallel attempt by the Trump Administration to ban those apps in the United States on federal security grounds. Federal District Court judges ruled in favor of these chinese trumpet against the administration. We have an appeal filed by the trumpet administration on the tiktok luminary injunction. Last friday, the Trump Administration also filed and an appeal on that we chat. Those sagas are not over yet. There are still legal chapters to come. However, it is more interesting now because of the story of reported yesterday. The trumpet administration according to people familiar, the Trip Administration is looking into how they could possibly apply restrictions on the chinese payment platforms that have really grown in china. Pay. Talking about ali alibabas Financial Services opening. We will have to see how that clouds the ipo. That is coming down the pipe. Ipos, weeaking about all know that Many Companies are too busy to this in hong kong. What are we seeing on the new york side . It seems there are still a lot of chinese ipos. Why . Get a deeper pool of liquidity and more flexible it. They dont necessarily need to be profitable. Especially on the trumpet administration, they are getting far more scrutiny. They could be forced to do list if they dont meet more strict accounting regulations. 9. 1 billion year to date has been raised in the u. S. By chinese listed companies. That would be the highest since 2014. We have more coming down the pike. We have this company in china seeking to raise about 3 billion. There are retailers seeking to raise about half 1 billion. Qe holdings has raised 2. 4 billion in the u. S. That is a portal for property in china. Raised carmaker in china 1. 7 billion in the United States. That being said, lets put things in perspective. Of all the Chinese Companies that have raised capital and ipo in 2020, 86 of them have chose hong kong or china. The u. S. Is good but hong kong and china are much more. Billion dollars raised in hong kong and china. That is not even including the impending dual listing, 35 billion total. Looke the pipeline strong. Lets take a look at markets right now. All the focus is on that china reopening in shanghai. What investors are doing is buying stocks, selling bonds. They are up close to 2 . So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Haslinda it is 10 29 a. M. In hong kong and shanghai. 10 29 p. M. In new york. Im Karina Mitchell. Stimulus talks remain gridlocked in washington. Sources say Steven Mnuchin raised the prospect of reviving negotiations with speaker nancy pelosi. The approach came after President Trump called for special relief for airlines. The speaker is ruling out a standalone bill to any sector of the economy without agreement on a broader stimulus package. What helped their line workers . There is legislation we had in the cares act that we hoped we could continue for another six months or so. That expired the end of september. We can do that separately, but we cannot do it unless there is a big bill. Karina a check on gaming activity as Gross Revenue during golden week was down 76 compared to a year ago. Casino activity in the first seven days of this month, the results are disappointing but not unexpected. An analyst see macaus growth gaining revenue falling well over 70 before a robust recovery in 2021. The end of an era is a step closer for one of the greatest planes in aviation history. British airways retired its last because covid19 has devastated air travel. Almost 50worked years, flying 104 million miles. They operated 57 jumbo jets at once. They were only confident with credit cabin crew on board. The malaysian Opposition Leader says he will meet the king next week to offer proof he has enough support from lawmakers to form a government. Last month he said he has the numbers to top of the Prime Minister, raising speculation he may demand an election. The Prime Minister rejects it, saying he remains the legitimate pm. He accuses him of selling political unrest. Global news, 24 hours a day, on air and on Bloomberg Quicktake, powered by more than 120 journalists and analysts, im Karina Mitchell, this is bloomberg. Haslinda lets take a look at the markets. Asia lackluster. Lacking direction as investors are mulling the prospect of a stimulus package. Futures pointing to a higher in the u. S. Stocks at fiveweek highs. A Biden Victory projected. A weak dollar scenario. Down by. 2 . Brent crude above 43 a barrel. Coming down about half a percent. The market is all about china. The pmi better than expected. Coming back from eight days of holiday. What a day it is. Surging up by 2 . Australia has been fluctuating. Set for its best week in six months. A boost of the budget expected to benefit them. Lets take a look at the movers. Rande extending to 4 , even though they say operating targets could be 2 . Needs tocrown restructure, following a probe to do with money laundering. We are tracking solar stocks in surged, 20 , peers up by nine. Robert kaplan is urging the Trump Administration to get on with fiscal support for the economy, warning without it, the recovery will be weaker. The fedkathleen hays doesnt have the tools to replace fiscal stimulus, and more qe is not the answer right now. Ismy own judgment, and this one of the 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. Can we go on for a while without additional fiscal stimulus . We could. Could we go on indefinitely . I would guess you are going to see weaker recovery if that were to happen. Kathleen lets say there is no stimulus for several months, and the economy needs more help, or it seems the prudent thing to do. What about bond purchases . That was the subject of debate at the last fed meeting. You cant cut rates more, thats the logic. If you have to do something, bond traders say it will be forced to buy more bonds in much larger quantities potentially. What do you see . The fed has a lot of tools, and we have more things we can do. Our tools primarily ease financial conditions to make it easier to borrow money. Our tools are not suited when you have an income loss and we need to make up an income loss. Individualso areas, who have lost their jobs lost income, and states and municipalities that can borrow and are using the private markets and are borrowing. The problem is the fiscal hole, and they need to balance their budget. They need to cut expenses if they dont get any relief, because they have a fiscal. Borrowing more money will not solve their problem. I think the fed can do more, and we will look at our options. Those arent substitutes for fiscal policy. Kathleen does the dallas fed mobility and engagement index, it looks so interesting, attracts tracks cell phone usage to get a gauge of the economy and how its affected by the virus. Whatsit telling you . To give people an idea, zero is the best possible score. Thats the level of engagement in february. 100 is the worst. That happened in april. We recovered a bit of the way. We are hanging out in the 30s. A little bit of improvement. The improvement is decelerating. You kind of see that in the claims numbers today. Were getting better, but the rate of improvement is slowing. I think the incidents of the virus is a big factor as to why we are improving, but it is stalling out a bit. Kathleen you said you would be more inclined to buy bonds if yields were rising. You dont want yields to rise too much, because the government has to have binary bonds. Thats what seems part of the monetary theory. Has the fed been dragged by circumstances into doing just that . This is why its 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 three programs, they need to lapse as the crisis wanes. We have bond buying 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. They need to lapse, the bond buying needs to curtail, the fed Balance Sheet growth needs to curtail. I dont think its healthy for the markets to be addicted or too reliant on fed presence. I dont think its healthy. Haslinda that was Robert Kaplan speaking exclusively with kathleen hays. For more on how the confusion of this affects the u. S. Dollar, lets bring in our strategist at network markets. Saying, stimulus front and center, markets seem to think its coming, the question is when is it coming, and how big of a stimulus will we see . What will disappoint the markets . When we look at the market rallies recently, even a piecemeal stimulus is healthy for the market. There is still some about what form we will have, 2. 3 trillion dollars, 1. 4 trillion, it is clear President Trump has an interest in seeing the stimulus package in some forms. I think longerterm, if you get a biden presidency, and also spells more stimulus under a democratic regime. Deficit wille still be negative, because of the consumption in the u. S. Being strong. Corona on one hand, election on the other, how do you hedge with election risks right now . Market is justifiably concerned about the transition but i think what that uncertainty, no matter who wins, i think the market will start rallying. The markets just want certainty. We know whether Trump Administration looks like, we have a good picture of the biden administration. Once they work out who is going to take the reins for the next four years, both candidates are talking about infrastructure, both are talking about stimulating the economy. Overall, the markets have more room to react more positively. Can you get behind a biden blue sweep trade right now, and assume a weaker dollar . Yeah, i think the dollar will weaken. What is interesting is the fact that even though you have a scare in the u. S. , where cases arise in the midwest, on the u. S. Demand is still going to be high. China is strong because of personal protective equipment. No matter who occupies the white house, whether or not you have a revelation to covid, you have demand for the Technology Asian protective equipment. Overall, i think that points for a weaker dollar, like the korean won, the renminbi, and the taiwan dollar. Yvonne those are your preferences. Lets talk about the renminbi. It is coming back strong after the holiday. The central bank isnt doing much to stop this at this point. How much further upside do you see . , i dontk that depends think the Central Banks need to target the Exchange Rate against the u. S. Dollar. Being steady,an only casually d. C. Pre depreciating. Then by next year, probably 650 even. Keep monetary policies loose. Again, those point to a weaker dollar. As long as the dollar weakness is there, the pboc will allow the dollar to weaken against the renminbi as long as it is trading on good terms. Really, can it afford to see such a strong currency . The economy is recovering come a but it has been uneven. The more the yuan rises, the more exports could be impacted. Although thats true, i think thats the impact of a stronger yuan, but not as strong as people think. China is trying to rotate away from the export driven model and more to one of domestic demand and domestic consumption. It helps from an import perspective. I dont think its really a case where china wants to keep it week. I think thats an obsolete policy. China basically knows because its a large economy, the worlds secondlargest economy, it sets it at an artificial level. As long as there is external demand, some will let the market gradually set a price for the renminbi against the u. S. Currencies. Asian currencies have been strongly correlated with the chinese yuan. What made the rail that correlation . Shortterm, i dont think theres any real risk. The biggestchina is for most economies in the world. A lot of them interface with china. Thats one reason i could foresee that if you do get some shock risk off events in the u. S. On geopolitical events, it could be another dollar squeeze, which would hurt the korean won more than the renminbi, because koreas system is more open. So when there is dollar demand, when people sell foreign assets, some of the higher currencies like korea will react more. And when it comes to yields, breakevens are rising, real yields are falling again. Is it better to stick to the low yield currencies you mentioned, like the korean won, taiwan dollar, and the highyielding ones in this part of the world . Now, i favor the low yielding currencies. Not because of the yield we are talking about, we know they tend to attract, i think the main story is the fact there is so much demand for technology exports and ppe, so even though we have had covid19 hurting u. S. Growth, a lot of tech stocks have done well. Demand for the Business Models and big companies. All of the Large Tech Companies will be building out data centers overcapacity, look at infrastructure. Int means they are made korea, continuing to be in high demand globally. I think they will continue to outperform. Great weekend, thanks for joining us. That was a Market Strategist joining us from singapore. With the deadline for the postbrexit trade deal a week away, are the u. K. And european markets spooked . Plenty more, this is bloomberg. Haslinda less than a week from the brexit deadline, and based on the rhetoric, it seems negotiations are heading for a cliff. There is reason to suspect both sides will lurch toward a deal after a. Lets see what the fx markets are pricing in. The october 15 deadline. Nothing very much, why is that . Now trading against the dollar, between the 50 day and 100 day moving average. We will just wait and see how it plays out. October 15, a potential deadline. Boris johnson has backtracked on that. I dont need a deal done by then, just a deal possible. Movable, as everyone knows. In the markets, looking for some progress, and if there is, that is faithful a good sign. October, so markets have been funds everyone is just waiting to see go it plays out before they to a specific position. Yvonne not much moving, what about the Options Market . What are they telling us . Is there any insight as to how brexit will play out . The option market, that goes through to january. Potentially, if there was one. If we look at volatility, reached about 12 in september, now its down to about 11. Quite stable. Not really indicating any panic. Next threes in the months, [inaudible] on cover price and in that range. That indicates it is not going to tank. The big worry is another brexit. Thinks somehow, some place, it will be done, and thats when you think you are in this range, high probability of 122 on the downside, 137 on the upside. Our asia rates and fx reporter here on what to expect october 15. Coming up, sixmonth into his rule, ibms leader makes his first big move as ceo. Splitting the company into 2. We hear from him next. This is bloomberg. Haslinda big changes at ibm, which is now essentially splitting into two. The will be spun out from new hybrid Cloud Computing and ai unit. The ceo told us about the decision. Us to unlocks growth by creating two companies. One company focused on hybrid cloud and ai, and the other focused on managed infrastructure services. In the first company, the platform to open hybrid Cross Platform based on that technology, all of the software that gives us the capability to leverage that platform, and going from there into all of the services they can use to do their journey to cloud. Put all that together, that will be ibm together with the infrastructure on their most middle missioncritical services. We believe that company will deliver singledigit growth in a Sustainable Way in the medium term. The other company, we are calling it nucor, because we dont have a name. A managed infrastructure company. Day one, the size of its nearest competitor. Over 4000 buyers in 115 countries and counting. Enabled with investment Balance Sheet to take shares and be an improved growth project rate. Really exciting to be able to do this. Yet again, reinventing our company for the future. About growth,lk and you say it is the question of growth, compare them. You said mid Single Digits where the one. Are you expecting much higher for the hybrid cloud and ai companies . My aspiration and goals will always be higher. We will invest to unlock even more growth. Its prudent, given where you have been the last few years, to put a target out there. Mediumterm, not the shortterm, because we have to execute the spin and do the work ready to generate that. I would say that is the milestone. We may go for higher, thats possible. Its prudent to commit to things that we have high confidence in. Up on shares took a step the announcement of this news. How much is a question of valuation . How different our Cloud Company valued by the marketplace, as opposed to Information Services companies . We were the majority services company. Half of theome over Software Installations company, and even larger of a number, in terms of overall product. Its a little over 50 . That is a very Attractive Company that promises a different valuation than the economies current structure. Thats a piece of it, but i think it is more the growth and Addressable Market opportunities. You are closer to that audience than i am, in terms of how to how they think and react. What will be the relationship between these companies . Will they contract with others, will they be contracting with one another . Competitors of your Sister Company . Both. Absolutely. You unlock growth for both companies. Certainly for nucor. They may not be restricted, but others competitors of the aggregate, they feel reluctant to partner deeply with them. That gets unlocked. No constraints, no restrictions of that size. I think its likely they are each others biggest customers on day one. They certainly purchase a lot of hardware and software from ibm. Ibm purchases services from nucor, in terms of infrastructure and so on. The companies will have a deep strategic relationship. That will not constrain them from bartering where they want to. Ibms ceoat was speaking to david westin. Take a look at the markets. Focusing on gold. Was notke the market impressed with the casino numbers during the eight day holiday. Citigroupof cicc and downgrading their forecast for gaming revenue after the holidays. 70 year on year for the month of october. You see most of these macau casinos are falling in hong kong. Look at the asian market and the airline stocks, they are also heading lower today. The ashares are looking better on the back of the daily air passenger volume, restoring by 91 . This is bloomberg. Haslinda its almost 11 00 a. M. In singapore and hong kong. I am haslinda amin. Yvonne im yvonne man. Chinese markets jumped on the return from golden week. Spending will show the strength of recovery. In hong kong, Everest Medicine sores on its debut. A band of india finally meets today with through three new members in the policy committee. Stubborn inflation may make it tough to cut rates. Yvonne penalty budget carrier cebu air plans to raise half 1 billion, joining global peers in trying to increase capital amid the coronavirus. The cfo joins us this hour. Haslinda china coming back strong. The rest of asia lackluster. Muted gains at this point in time as investors mull over the stimulus package. The asia pac index inching higher,. 10 . U. S. Futures pointing to a higher open. U. S. Stocks, the fiveweek high. Activity propping up u. S. Stocks. Nifty futures pointing to a higher open. Most virus restrictions lifted. Dollar index down by. 2 . We saw the rbis decision coming up later this afternoon. The rest of asia looks sleepy. The china markets coming back in a big way. The a share market up 1. 8 . Large cap up to percent. Buying stocks, buying. 670 for the offshore renminbi. 10 year yield highest since december. Cross assets, the aussie, the yen, strength for both of those currencies. We did see oil climb overnight on the back of this hurricane approaching the u. S. Gulf. Opec mentioning the worst is over. Also a buy. 1 at 1950. Lets get to the first word news with Karina Mitchell. Start with fed officials telling the Trump Administration more fiscal aid is needed tos of facilitate the economic recovery, saying without it, the rebound will be weaker. With stimulus talks stalled, Robert Kaplan told bloomberg it is not the time for more qe. He said the fed is unlikely to increase largescale asset purchases, as it would not help the real economy. Right now, i would be hesitant to see us doing more in that area, because i dont see the benefits. I see how it would further add fuel to the financial markets, i am more skeptical how much it will help the real economy. Trumpspresident seemingly remarkable recovery from the coronavirus continues, with his doctor saying he can return to Public Engagement saturday. He was admitted to hospital last friday and left the Walter Reed Medical Center monday. His doctor said he is responding well to treatment after undergoing a full course of therapy. China has joined the who effort to ensure the whole world can be treated for covid19. The Foreign Ministry in beijing confirmed the decision, but its not clear how much money china will put into the project, which is estimated at 18 billion. It aims to give a lower Income Countries the same access to vaccines as wealthier nations. So far, the u. S. Is not taking part. Global news, 24 hours a day, on air and at bloombergquint take, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Haslinda lets get more context on the Market Action as china returns from its golden week holiday with mark sanford from the live team. It looks like china is going gangbusters, up 2 . Pmi supporting that. Had catching up to do in the time china was closed, most labor markets had risen. The implications were china should rise by 2 , so thats what we see. It may not even stop there. There is optimism that the golden week Holiday Spending would have been strong. Air travel was good across china. People will be expecting some feedthrough for Consumer Spending on that side. They are also looking at the situation in the u. S. Before china went away on holiday, the u. S. Election was probably closer than it seems now. I think china now factoring a joe biden win, and relations between the countries improving a bit. That is helping to push the yuan. We see that feedthrough right across to asset markets. They are starting to price in a change in the white house that would be more favorable towards the Business Environment in china. 670 for the offshore renminbi. You mentioned the fix we got today, which was stronger. Do you think it is paving the way for more strength . Where could it go . Is interesting, because people were looking closely to see whether the pboc would strain the strength, even without chinas onshore markets. The offshore yuan quite a bit. There is no sign the pboc are concerned about the strength. Camectual dollar yuan fix in even lower than the bloomberg forecast, which is quite low itself. No indication they are concerned about. Thats partly because on a basket basis, it hasnt yet reached any extreme levels against a whole group of currencies. It looks strong against the u. S. Dollar, but you take into account the euro and other currencies, it is in a more barren situation. From the optics point of view, it is close to 670, which is important. The stock if we see market trade with 669 or 668 handle, we may see pushback from the pboc at that point. We dont want to see the yuan getting too far ahead of itself. Mark ran field. You can follow more on the blogt moves with the live on the bloomberg. Check it out. Still ahead, counting down the rbis finally making a decision later on. We speak with the nomura chief economist about what to expect. Philippine budget carrier siebel air is joining airlines around the world in raising to deal with the pandemic. We hear from the cfo, next. This is bloomberg. Philippine budget carrier siebel air plans to raise 500 Million Dollars by selling fed stock and bonds, joining Airlines Worldwide in trying to increase capital. Its undertaking a business transformation that involves trimming down its fleet and network while improving operations. Allies in the country suffered a shaky restart amid one of the longest and strictest lockdowns. Joining us exclusively is the cfo, andrew wong. Im wondering about your offer. Who are you targeting . Is it one strategic investor looking to buy into siebel air . Are really on the bond a group ofng at haveegic partners that expressed strong interest in working with us. Those are currently in discussion. As part of regulatory requirements, we had to file. Thats what we did. Its part of a bigger plan. Haslinda is it also in preparation for any eventual government aid . Actually, the government and ourselves have been discussing possible assistance for about six months now. So we are working with the government on possible financial assistance, possibly through a loan package. That is not going to be in the context of the whole transformation program, financial package we are putting together, that is just one thing we are doing. How crucial is it to get that government aid in order for you to recover as an airline at the moment . I think the governments participation is very important. We are really asking all of our stakeholders to come in and work together. Any situation where we are in a bankruptcy situation, in fact going into this covid situation, we had one of the strongest airline Balance Sheets globally. About 1. 9 one. What we have done in this situation is approach all of our partners, stakeholders, whether andsuppliers, creditors, the government, as well as shareholders, and said we need to come together, this is a crisis of unprecedented proportion, and we want everybody to help. So we are asking everybody to play their part. Government aid will be very helpful, but it is just one istion of everything, which consistent with what the secretary is asking for. But it has to be a multipronged approach. Yvonne which brings me to my next question. How have talks been with creditors, suppliers . Are you on track to make payments . Tap into the credit lines . Actually, it has been very good. Instancesked in some for banks to carve out forthcoming principles and give referrals on that, so we have breathing room needed at this time. And i think the banks have been very supportive in many different ways, so we are grateful. Thats the reason we are doing this. Important for the projects sponsors, for the owners to say we are all in this together, so the preferred share issue we are talking about will be proportionately subscribed by jp summit, which is our parent. If there is a need, if there are unsubscribed shares, they are prepared to take up whatever may be unsubscribed. We hope it will be fully subscribed by our existing circle numbers. Islinda we know cebu undergoing transformation, and we talked about rightsizing. What is the right size in terms of fleet . What we are doing is we have done a review of our fleet and demand. In somerying to build flexibility, in case there is uptick. We make surehand, we take care of our assets. About 14e have parked aircraft in the australian and we will probably part a few more. So we have a portion of our fleet there. Similar to the archer other large carriers. We also have a portion of our under storage here in the philippines that should be ready to go at very short notice. And we have a regular fleet we are flying today on limited basis. , given the pandemic going on. Haslinda are you planning to cancel orders for planes, like that 8321 x rl . Actually, we are close to airbus, ourrms with engine suppliers, we have had positive discussions with them about pushing out those deliveries without hurting us, in terms of any escalations or what have you. On the others, we have also managed the exit of our older fleet. That whole exit strategy has been going on for some time, dating back to precovid. Always had a very orderly planned exit of the older airplanes, aside from taking on airplanes. Even if we have additional airplanes, airplanes coming in next year, our total size will current 76 to about 68. Yvonne do you think you need the plane at all . Do you think airbus will keep producing the jet after the troubles it had with air asia x . About theare talking think it is actually we think given the kind of negotiated, weve think it will be a winner for us, in terms of the unmatched cost we will have on the aircraft. Issues, in there are terms of what might happen to that aircraft, in terms of the demand. Remain committed to that aircraft. We are taking those airplanes, although they will be stretched out further. We are taking the airplanes because they are part of our local longterm strategy on the problems,th which admittedly are not here yieldsmaybe a few more years. Eventually, that will catch up. Yvonne thank you for joining us. That was the cebu air u. S. Cfo. Talks to buy die linke to take over at 30 billion. The chipmaker deal will follow nvidias purchase if that goes through as rivals battle for a bigger foothold in the 5g and ai market. Amg stocks have almost doubled, as it looks to break intels stronghold on a lucrative market for data center components. A salesnd has been on blitz during the golden week holiday. It looks to avoid a cash crunch of 6 billion in the next two months. Discounts of up to 30 on some properties, helping ever grand raise 21 million last month, and that should help keep the developer going for now. A Chinese Biotech Firm with the hong kong debut. This is bloomberg. Yvonne Everest Medicine soaring in its hong kong debut. Million. 420 investors including gic, blackrock, and hillhouse. Shares up 36 . We spoke with the ceo today. Kong, becausehong of its proximity to the China Mainland and being in asia, is very important for us. We want to be close to the patients we serve and the innovativewe provide medicines to. Hong kong over the last two to three years, the exchange has grown robustly since they started the program. 154,have had Pharmaceutical Company lifted listed. The companies have done quite well. Have it in your pipeline right now, a fresh kind of company, only about three years old. You are not there, in terms of jumpstarting into a commercial stage at this point. When can you tell us, in terms of a timeline where you can generate revenue . Medicines willr have 2 approved in the next two years at launch. We believe the first two will be jarrell the and sarov for. These completed a phase three bridging trial in china. Ofexpect to file an nda off the data at the beginning of next year. Seeing, what are you in terms of appetite from u. S. And European Drugs, or commercialization in china, and other parts of asia . In terms of interest, what are you seeing . The first step is identifying the Disease States in china and asia that are best served by innovative medicines. Go to the this, we companies that have assets that would fit these critically unmet needs, then we help the Companies Understand the importance of china. The reception has been good. Eight partners for the assets. Partnerships are strong and robust. Many times, assets are the crown jewels of the company from whom we work. So we are excited about our partnerships and the reception from companies. Often times, the Disease State in china is bigger than europe or the u. S. Haslinda talk about your strategy and expansion plans. Everest made headlines in april when it paid record 60 million up front. Deals, what would make sense . The generic name, it is a medicine validated in many ways. Was 65 million. The milestone for approval in the u. S. Was 60 million. Im sure youll where iliad is in acquisition mode. The publicly released information, they have offered 21 billion for the company. We believe its a great comparison for what the value of the medicine is. The Disease States for which it treats are common in china. Breast cancer based on prevalent is the most prevalent. We think the strategy of bringing this type of asset into china is very robust. That was the ceo of everest. Asia muted by china. Playing bit of a catchup. 2 for the csi 300 index. Back from an eight day holiday. Shane kuyper composite at 6 gains. Best performing indexes. All of the indexes in positive territory. Taking a look at movers we are tracking, airline shares, ashares are surging. Air china is up by one. Nearly 80 of 2090 level. Spending lagging. Perhaps chinas economy is moving past covid. Positive sentiment. Keep it with us. This is bloomberg. Are you frustrated with your weight and health . Its time for aerotrainer, a more effective total body fitness solution. announcer aerotrainers ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. Do the aerotrainer super crunch. The prestretch works your abs even harder, engaging the entire core. Then its the back extension, super rock, and lower back traction stretch to take the pressure off your spine and stretch muscles. Planks are the ultimate total body exercise. Build your upper body with pushups. Work your lower body with the aerosquat. The aerotrainer is tested to support over 500 pounds. It inflates and deflates in less than 30 seconds using the electric pump. Head to aerotrainer. Com now. Now its your turn to lose weight, look great, and be healthy. Get off the floor and get on the aerotrainer. Go to aerotrainer. Com, thats aerotrainer. Com. 11 29 a. M. In hong kong and beijing, 1120 9 p. M. In new york and washington, d. C. , im Karina Mitchell. Talks remain gridlocked. Sources say treasury secretary Steven Mnuchin raised the prospect of reviving negotiations with nancy pelosi. The approach came after the president called for special relief for airlines. The speaker is ruling out the standalone bill to any sector of the economy without agreement on a broader stimulus package. We want to help the airline workers, but the legislation we had in the cares act, we hoped we could continue for another six month or so. Expired the end of september. We can do that separately, but we cannot do it unless there is a big bill. Karina the u. S. Supreme court is allowing women to keep obtaining abortion inducing pills during the covert outbreak. It effectively denies request for the Trump Administration to reinstate a requirement patients visit a medical facility. It was the first major decision since the death of ruth bader ginsburg, who was a staunch supporter of abortion rights. The mood among merchants in japan rose to its least pessimistic in more than two years, adding to signs the recovery is taking root. A gauge of sentiment among store managers, taxi drivers, and others moves to its highest since april 2018. The news will be welcome for the new Prime Minister in one of his key advisors say he may call an early election year. Global news, 24 hours a day on air and i Bloomberg Quicktake powered by more than 2700 journalists and analysts. Im Karina Mitchell, this is bloomberg. Yvonne time for the morning calls. Lets get to sophie kamaruddin, who has been tracking notable moves. China markets are the big focus still. Is now the time to buy . Jeffries in to their report, the best time to build up a division in air shares ashares would be after mega listing, or in november, once we get more clarity around their fiveyear plan. Perhaps stability in the u. S. Jeffries is constructive on sectors exposed to infrastructure and consumption in china. Players like ecommerce and construction. Saw the data looking favorable. The pmi numbers today, which was a beat. Gdp numbers due on the 19th of this month. What are the economists arecasting now they pointing to the pickup we see and manufacturing and nonmanufacturing pmi from china suggesting the gdp rose 5 on a yearly basis in the Third Quarter, and are also seeing signs of a positive move when it comes to consumption. The private reading demonstrating that trend. But it is still too early to be complacent, given what we see around cpi, also the uneven recovery across manufacturing sectors. Evergrande in focus today, what was the assessment . Weshares under pressure as saw a squeeze on evergrandes theins, likely to go into fourth quarter. The boost to sales is positive for the developer trying to curb its leverage to comply with chinas three red lines around debt. While it will be sacrificed, we have raymond chained saying concerns around debt and Liquidity Risk are being eased thanks to the strong sales report evergrande recently reached with investors. Haslinda sophie kamaruddin. Lets get a quick check of the markets. China getting back after an eight day holiday. It is in the money, up by more than 2 . The rest of asia muted. The nikkei back from lunch break. Trading lower. We are keeping an eye on softbank, down by 1 . Green still. Looking to raise fresh capital. Valuation,7 billion double its previous fundraising goal, softbank down by 1 . We have the yuan in focus. Dollar came in strongerthanexpected. It seems the pboc has an appetite for a stronger currency. The fix was strongerthanexpected. 6. 71. Rrency hitting the euro at 1780 right now. Yvonne we still have one centralbank decision this week. Reserve bank of india going to announce its Monetary Policy in about an hour. All 32 economists surveyed by bloomberg leaving it unchanged at 4 . Our next guest sees the tilt toward the dumbest direction as it remains above the are b. I. Upper threshold. Joining us is the chief end india extra penny economist. Graphic of how a things are tilted when it comes to the doves and the hawks. Now that we have these three new members, it is more on the dovish side. Has it changed the dynamics in the central bank . Makefinitely the members the competition more to the i think this policy meeting in terms of the new members that have to face the fact there were a lot of rate cuts and inflation close to 7 . I think it will show what happens. But the base case remains that next hold. Waite can are bil for to easing right now . We continue to see the virus situation. They are struggling to flatten the curve. We have seen recent rebound in the real economy. How much momentum is in this recovery . Creek keye question. In the Third Quarter of this calendar year have been the recovery. On how thely depends situation plays out. On that front, there has been a flattening. But that means uncertain. Has slightlynd recovered. Given the support package and income, the recovery may not sustain. With theock rebalancing, the companies and the banking sector, it looks like the pandemic may end up hurting. You are right, in terms of raising concerns on the view ability of this recovery, but it has been aggressive. Stay saygoing to they can afford to wait. Of a temporary pause. Haslinda some are of the view there are higher prospects of unconventional policy being adopted by the rbis. What is your take on that . Absolutely. I would agree with that. The trigger is when policy rates are closer to the lower bond. Is, there istly it no clear answer to that. We are close to that. It means we need to look on time. Second, given the risk and the we want credit growth to pick up. Despite banks, there has to be a more direct approach from the rbis. , more makers are likely. More unconventional. It could be more blended programs, the bank of england, funding for lending. Could be more of the open market to control bond yield. It will be a mix of conventional and unconventional. Thank you for your insight today. You can also turn to your bloomberg. Get commentary and analysis from bloombergs experts. Our b. I. Coverage starts in about an hour. The rdi coverage started about an hour. Tariffs acquiring asset manager yvonne acquiring asset manager eaton vance. The chairman and ceo has driven a dealmaking blitz and transformed it from a wall street specialist to a major player in money management. He talked about how the deal could reshape Morgan Stanley in the coming years. This has been us a 10 year strategy to take the bank and trading business, claimant clean it up, take away the prop trading, use that capital more effectively. Its doing unbelievably well. Then we pivot to build up the Wealth Management business. And e trade, which gave us a digital platform. Now we are doing the Asset Management side. Very small boutique on the west coast of the u. S. , and now with eaton vance. With 2030, you will find a stable, faster growing, very capbased institution, world wise, strong liquidity. Are you making Morgan Stanley for the masses . Are you trying to be all things to everybody now that you added this large brokerage and massive asset manager . Not all. We have done many deals since i have been ceo. Oil storage, Oil Transportation businesses, Mortgage Servicing businesses. Banks, aprivate business in the u. K. , so on and so on. We have been reshaping the portfolio. About redistributing capital for individuals, institutions, and governments around the world. In the Asset Management space and Wealth Management space, it is all consistent. All part of that process of originating management distribute in capitals. We are a more focused company. Been an expensive deal, but at the end of the day, its what it will deliver to shareholders. It comes down to profit, margin. How do you explain the economics to them . I have met a lot of people who want to buy a great cheaply, but have not done anything. Underperforming companies without a lot of money, if you are going to buy a great asset, eaton vance has been around for over 90 years, worldclass, huge talent, complementary businesses. Very little dislocation. Highgrowth, great businesses. Parametrics have been growing fast. Was a nobrainer. We paid full dollar. Thats what you have to do if you want to buy highquality businesses. And they came to us. They wanted to be part of the business, and we aligned. About 100 basis points of our core regulatory capital ratio. It created about 100 basis points this year. We are sort of back to neutral. It will be a terrific deal. Im not worried about the financials. Cracks it makes the asset manager big, above 1. 2 trillion. Still a fraction of where blackrock, vanguard, and jp morgan are. How do you compete with those rivals . They are different businesses, vanguard and blackrock are index or Exchange Rated businesses. We are not trying to be the biggest, just i often said you dont do strategy through envy. Thats how you make mistakes. You do strategy based upon what works in your institution. To have the three into Asset Management company, is unbelievable. I dont care there are others who are bigger. The point is we generate in the returns we need for our shareholders. We are providing the clients with the opportunity they need for the best product. The truth is between our Asset Management businesses and eaton vance, it is absolutely happening. Haslinda Morgan Stanleys chairman and ceo speaking to sonali basak. Still to come, the battle of retail in india. One of the biggest deals is under threat as amazon breach of contact contract. This is bloomberg. Indian markets have just open. Stick, we have seen a sleepy session. Asian stocks on course, the best since june. Chinese stocks doing another thing, playing catchup. A touch higher. The nifty, as well. We have been watching what happens with the rbis decision later on today. After much delay, we are getting a policy decision. Expecting nots are change, given inflation prices being stubbornly high. Also looking at Government Bond auctions and fx Exchange Data coming up in india. Also in india, retail wars heating up with amazon claiming its partner violated a contract by agreeing to work with the reliance industry. That could derail the biggest retail deal. Retailring in our reporter. What is this about . Its a fight between the Worlds Largest online retailer, amazon, and indias future group, whose founder pioneered supermarket retail by building hundreds of these Bazaar Stores chaoseplicated the messy of indias bazaars and cram shops. Last year, amazon agreed to purchase 29 of the unlisted firm with rights to buy into future details. Two months ago, reliant announced it was buying the retail warehousing and wholesale operations for 3. 5 billion. Amazon says its a breach and have issued enforcement for the contractual rights. What does this mean for the whole retail landscape in india . What is the impact we are going to see . Jeopardizes the deal between two of indias largest retail chains, Alliance Retail and future group both own thousands of stores. Be offlinever just or online. Most of india still shops in the goods stores, but online consumption is growing. Every online retailer needs stores, and every offline retailer needs to push ecommerce. Ure reliance adds to amazon was hoping to capitalize on retails, but that is slipping away. It will now do everything to block the deal before it gets regulatory approval. Capex what are the haslinda what are the real stakes . Fights isnt really a between amazon and future, it is a fight between the Worlds Largest retailer, amazon, and indias most valuable conglomerate. Perhaps the most exciting Retail Market of them all, indias Retail Market is 1 trillion and growing. Getting transformed. Retailers bringing in warehouses, structures, all of which lacking in most part of the country. Own flip car,mart dominic retail, but alliance has weekende in the past pushing online sales through its geo mark. This will be a really exciting thing in indias largest pending season with all of them fighting it out. Still to come, why a grammy awardwinning rapper is launching a digital bank. We heal from we hear from Michael Denver about why he is trying to address years of inequality in banking. This is bloomberg. Yvonne michael render, also known as killer mike of run the jewels, launched a new digital bank, along with other black figures to serve under bank local communities. He talked about greenwoods mission. Of jimndured 80 years crow, redlining, american soldiers that came home that couldnt get the g. I. Bill. Every step of the way of black americans and americans on the side of good have fought against that. Inch banks, a 95 year bank atlanta called Citizens Trust was born out of that. It underwrote many housed in the neighborhood i grew up in, its a nationally registered historical neighbored gentrified by black people for black people. Every step of the way, i want to let black people know you have found a way to do it. Greenwood is another way to do it. In an era where the four largest banks are denying loans at about 21 compared to 8 of white people, when many large banks have proven themselves untrustworthy, like wells fargo years ago, you need a name that will be able to be trustworthy and set into motion to seeing you accumulate wealth and be the first, second, and Third Generation to have wealth in your family. Greenwood is that. Is coming toanking our telephones. My 13yearold banks through her phone. I go into brickandmortar places. As they take those out of our community, we seem to be lost. Greenwood is bringing your bank to your lap, your home, not only do savings and deposit, theyre hope and goal is to grow into a lender for automobiles, homes, homes or the first sign. Piece of wealth many generations of americans can leave to their children. So greenwood is carrying the protracted scroll of banking that Frederick Douglass attempted to do, sammy lou hamer, that many banks have effectively done, like Citizens Trust. We will add to that. In a capitalistic society, more competition usually equals better outcome for the customer. We look forward to providing services that will prevent the need for Check Cashing places, preventing need from payday loan places, and will prevent the need for our predatory. This is an impressive project. I grew up in chicago, in the shadow of seaway bank. You went back. But its good to see that coming back. This is effectively a project around black solidarity. That seems to be the merit message caroline was referencing about the speech he made in atlanta. And in this environment, for many voters, it comes down to a binary choice, where you either pick the guy who will hurt you, or the guy who will hurt you less. You backed Bernie Sanders early on in this political process. We now have a democratic nominee who is not Bernie Sanders. Behind the general idea black people who arent necessarily singular and political beliefs getting behind this binary choice . Was at a dinner last night with former mayor kasim reed, with the man who owns a Refrigeration Company here, he is a toe the line democrat, he he left uslion with tyler perry. The brother across the table from him was a diehard republican and trump folder. They had a lively discussion. Would it came down to is no matter who you vote for when you go in, what is the party and what is the country willing to deliver to our community to help us be the best and strongest financial community, social and political . When our community is stronger, the country is stronger. When black people are more unified, in terms of the dollar, social issues, and policy, the country is better off. No matter who you get behind, i would say the day after you vote, you should be on their line demanding more for the community, because given the proper chance, we can be as productive as any other community in this country. Haslinda that was rapper and greenwood financial michael render, a. K. A. Killer mike. The circuit the latest headlines. The worlds most indebted developer has been on the sales blitz during chinas golden week holidays. Discounts up to 30 . Some properties. Every grand raised 21 billion last month. Morreale is closed to stores and cut jobs and operations in the u. S. Covid19 altered Consumer Behavior and will shift more investment to ecommerce. Up to 400 jobs in its u. S. Loves division will be affected. Take a look at markets before we go. Muted session, with the exception of china, under a lunch break. Up by one third of 1 . Our b. I. Decision at the bottom of the hour. We will break it to you, coming up. We have the best of daybreak middle east, coming up. 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. The following is an important paid program about humana Medicare Advantage Prescription Drug plans, sponsored by humana. 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