Out his vision to drive new Economic Growth and draw hong kong closer to the mainland. Offapple takes the wraps the iphone 12. And pricey. Analysts say it could trigger a new wave of sales. Haidi all right, lets take a look at how we are setting up going into trading, and australia, weakness as expected with equity futures. About 1 10 of 1 . Reasonablethere were earnings out from banks, putting an end to the stalemate and a contention over another round of stimulus with the white house and democrats in disarray over negotiations. The aussie dollar also trading 158, and we heard from the australian treasurer speaking earlier, commenting on the tensions with china, saying the relationship has been challenging but that it is vastly important and a relationship of mutual benefit. We will continue to watch that and others, as well, given the concerns about the import ban when it comes to australian coal into china. Kiwi stocks, modest to the upside. Going from strength to strength. Of course, we have had 14 Straight Days of gains when it comes to the kiwi session going into the election this weekend, and the kiwi dollar with a. 6648. Bit of weakness, stockswe had u. S. Retreating from the six weeks highs, and negotiations have stalled. We have mixed corporate news, as well. Nikkei futures up, but the japanese yen holds steady. We had it weakening slightly in the previous session. Of course, we are also watching the softbank vision fund. Wti under pressure right now but still above that 40 a barrel level. We saw gains in the new york session after data from china showing robust crude imports, but, of course, it is the Oil Demand Outlook that is a big question right now, haidi. Haidi well, lets take a look of one of the top events on the agenda today, what is being hailed as a major policy address from xi jinping earlier today, spelling out his vision for an integrated local tech corridor to rival silicon valley. Stephen is following the story and joins us in hong kong. Isve, we know how it historically in terms of the broader economy, so what are we expecting from todays speech . Is an interesting paradigm shift as they have ramped up the Economic Zone in shenzhen. And chinais changing, is changing so fast, it wants to be an Innovative Center for the world, as part of xi jinpings economy plan where you boost domestic growth, supplemented by Foreign Technology and foreign investment. But because the world is so fractured right now, and there is so much conflict between china and the United States on economic fronts, political fronts, china would like to become, as xi jinping has said, more selfreliant, so the main goal that we are going to be looking at during his speech in shenzhen is will china roll out bolder policies to stitch together the night major cities that are in this greater bay area, the river delta, and connect it to the more International Cities like macao and hong kong . We will get to hong kong and its advantages and disadvantages in a second, but basically, the greater bay, according to xi jinping, will drive or can be a driver of Economic Growth and bring hong kong more into lockstep with the mainland. The top body, the central committee, of the Chinese Communist party will convene a meeting late next week in beijing to lay out the next fiveyear plan, and the Greater Bay Initiative to be at the forefront to drive innovation, with 5g and beyond, futuredefining technologies, that would likely be a main, integral part over the next fiveyour plan to drive that innovation, to be competitive in the next Industrial Revolution that the world will likely see through 5g and the likes, but there will be challenges. Given that chief executive carrie lam was canceling her own policy speech, tell us how this will fit into president xi jinpings big vision. Is no doubt that hong kong has faced really tough times over the last couple of years, a clash of ideologies and a clash of visions for the future, obviously, but people like the chief executive, carrie lam, and others talking about this was integration, and youre already singing at. Look. How many 10 billion tech unicorns have come out of hong kong in the last years . And you are already seeing it. Look. How many 10 billion tech unicorns have come out . One had to go to shenzhen to succeed, now the world number one consumer drone maker, but that was based and started in hong kong, so the innovation is happening across the border. Look at those companies. Huawei. Byd, i am not a cheerleader for the young, hong kong people who went to the streets, but that is clearly what xi jinping wants to stitch together and say, listen. We are all chinese. We are all in the same goal, and we need to combine hong kongs Capital Raising hub it is losing a lot of its other manufacturing, textiles are gone, logistics and trade exports, they are losing ground to mainland cities, so what can it be . Inking, finance, and Capital Raising, like the ipos. Banking, finance, and Capital Raising. Shery our chief correspondent there, stephen engle. With a guesthead joining us in the next hour. For now, lets go to Karina Mitchell for the first word headlines. Hopes for a stimulus package are dimming, with nancy pelosi demanding they revamp their latest offer, with Mitch Mcconnell pushing a smaller one that President Trump has already rejected. Pelosi says the proposal is a thetarter in the wake of democrats have a more leverage than ever. Is slow and uneven, with a less dire view on the recession with one fun seeing gdp shrinking this year, down from just ash one fund seeing gdp shrinking this year, covid19 having killed millions and shutting down vast parts of the economy. Are seeing advanced economies doing better than emerging and developing economies do in china. Women doing worse in labor markets. Rising inequality. Long, uneven, and highly uncertain. The imf is cutting its outlook for india even further, saying it now raises the biggest contraction among major markets. Gdp is expected to shrink by more than 10 through march, which is worse than the imf saw in june. Biggestd imposed the coronavirus lockdown, causing the economy to shrink by a whopping 24 in the quarter. Global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Haidi . Karina, the world bank has approved billions for countries, and they see vaccines as part of the billions in the package to be supported through june 2020 one to help developing countries cope with the impact of the covid19 pandemic to helpjune 2021 developing countries. Approvingbank theyre 12 billion for covid19 vaccines for developing nations. Chinese stocks, if another milestone. Plus, the new apple iphone. Wall street predicting it will kick off a new cycle of sales growth. We get the details and reaction from analysts ahead. This is bloomberg. Turn to the markets where, as you can see on this chart, chinese stocks are within striking distance of alltime in 2007. St hit however, our next guest is cautious about changes. Joining us now is the vp of china equity sales. Great to have you on. Of course, we are only a few weeks away from the rule changes when it comes to foreign, Institutional Investors being able to invest. Thises, what will all of margin trading due to the markets, especially with the smaller cap . Sure. Thank you for having me. So we know that from november 1, the requirements will be relaxed, and the application procedure will be simplified, and we expect more and more hedge funds to apply. Hshares, like small midcap stocks could be owned by retail investors, and they are overvalued. As a result, it becomes a target. That is why we think investors should be cautious on that. So when youre putting your money in china, what sectors would you look at . We first started investing in china, usually largecap. Nameslly, there are 30 that investors usually invest, but when you are investing more companies, starting to look at small caps, sometimes there is very high growth, and then cash flow looks very good, but there could be some accounting fraud , locals, and most likely is no better. And if you do the research, you will often find something wrong. And that is why they could be shorting those stocks. Shery the lesserknown opportunities. A lot of these names are too good to be true, because there are these transparency issues, and if you are a foreign investor, you potentially do not have the ability to do those grassroots, Due Diligence . Jenny right. I agree with you. Especially when the reports matter. Where do you strike a balance with the riskbenefit with these . Jenny do you mean in china right now . If youre looking at opportunities across smaller names that have not been, i guess, as exposed when it comes to what Institutional Investors would be looking at now, how do you balance . What are you looking for in terms of making an investment that is going to pay off but also have a level of risk hedging attached to it . Jenny ok. So i think, eventually, it would be a wise decision, because it is very hard to manipulate cash flow. So most likely, you want a company that has very good less risk ofhen bankruptcy. Mean, not a lot of debt on the Balance Sheet. And also, we want to invest in companies that are very longterm investing, not just shortterm. You a little ask bit about the premium we are seeing, because the gtv chart shows how they have underperformed their mainland peers in 2020. Of course, we have the strength they theant yuan, so will we ever see this premium go down . Jenny i think it could be. Actually, generally speaking, the hshare market is trading at a premium, like higher valuations than hong kong. But if you think on the other side, i think it is a good time in hong kong, as well, because a lot of those companies, they actually have their Main Business in china mainland, but they are listing in hong kong. Currentarket, given the relationship between hong kong and the China Central government, it does not mean that your fundamental is bad. So it is also a good time to seek out the good stocks that are listed in that market. Xiang, joining us, appreciate your time. And companies from china to the u. S. Are part of the race to roll out the first vaccine, and as we mentioned earlier, Johnson Johnson was forced to pull their late stage covid19 trial due to illness in one patient. Company remains confident in a vaccine and is aiming to make it available late this year or early next year. Respect to details around the pause, the temporary pause, on our vaccine and it it trial, there is very few details known at this point in time. We were informed about 36 hours ago. That information was elicited by the independent drug safety monitoring board. Because ats blind to this point. It is up to the independent group to determine what will be unblinded. We had significant confidence going into the trial, as you recall, with people on the for ebola,bolo, f zika, and others, and we have to make sure we are following the highest scientific and ethical standards for all our drugs. That is certainly true for all of our drugs, and i believe it is true for all of our pharmaceutical counterparts. Ofyes, astrazeneca, one their studies had to be halted while they assessed some patient issues, but it still has not been approved by the fda. It can continue in other countries. I would like you to help us understand the process globally as to what stocks, what moves forward, how quickly that can happen. Yes, i will not speak specifically on the astrazeneca, but from our perspective, the details are still being finalized. It is a 60,000 person study, which is the largest of any currently being conducted. It is probably not uncommon to expect unexpected illnesses that occur, and that is what has happened here, so we will let the board to their study, do their Due Diligence, and then we will proceed accordingly. We have been in contact with the fda as well as other regulatory authorities around the world, so they are well advised as to what we know at this point, and we will certainly work in lockstep with their direction, as well. Can we talk about the timeline a little bit . The ceo has set in the past and he would expect the vaccine to be available late this year or early next year. Is that timeline still the one you are working to, or do you think the risk has pushed it out further than that . Joseph i think the best way to answer that as the cfo is to say we are not changing any investment plans to expand our manufacturing footprint, so we are planning for success with that same timeline in mind. Fair point to make as the cfo. I wonder if you can give some insight into the Johnson Johnson conversation with regulators, for example. A lot of the confusion in the market come some the fact that we do not know about the vaccine and who is going to vet it and if it is safe to take. What is your conversation . Joseph our conversation is to keep them advised of our scientific protocols. We are being transparent not only with the regulatory authorities but with the public. We have a website that outlines our protocol, our study results, our enrollment, as that gets posted, so we are being very transparent. The public will hopefully be reassured that we here at Johnson Johnson and i believe across the industry are following every proper safety protocol guideline to the utmost degree. That was the Johnson Johnson cfo, joseph wolk. Next, Supreme Court nominee Amy Coney Barrett is grilled by democrats on everything from guns to election disputes. We have the details. This is bloomberg. Anchor grilling Supreme Court nominee Amy Coney Barrett as she kept changing her positions. Not knowrett i do about the suggestion that i have an agenda, and that i want to strike down peoples protections for preexisting conditions. That is just not true. I have never taken that position, and as i said previously, any policy opinions i have do not matter. They are irrelevant. So coming up with that law and the contours of the aca, that is your job. Lets get more with our reporter. Gray, over the past couple of days, we have heard Amy Coney Barrett as someone who would put her personal preferences aside. There are concerns about things she said previously and written previously, that she would be willing to overturn precedent. Reporter yes, she said that over and over today, that she would not vote and rule based on her personal preferences. She was asked about abortion, the, gun rights, and all of those things. As you said, she has written and said some things in the past that she did need to explain. She has been critical of the Supreme Court rulings that upheld the Affordable Care act in previous years. She has also suggested she might be willing to overturn precedents that she strongly disagrees with. Democrats have been asking about those things, but as you said, we have not made a ton of headway. She said she does not consider roe v. Wade to be president. What does that mean to be precedent. What does that mean . Reporter she gave a term a lot of academics use, saying there are only a few, once like brown versus the board of education and some older ones, where she says they are sos feet and the culture so in the culture it would be hard to overturn them. She did say that roe v. Wade does not fall into that category, so there is a possibility she would vote to overturn it. Greg, as this seems to be a sure thing, are we getting any more clarity from the side of joe biden where, presumably, if he became president if he would be a fan of packing the court . Greg well, he said the other day he is not a fan of packing the court after several days of saying he would not say and that he would say after the election. That will be a heavy lift. Win thes, even if they senate, to get 51 votes in the senate as well as a majority in the house to put new seats on the Supreme Court, that could be a challenge, even if joe biden had a full throated endorsement of the plan. So at this point, it may be that the biden administration, if we administration, will take more of a wait and see what this conservative 63 majority does. Great to have your insight, joining us from washington, greg stohr. Bloombergso turn to to get commentary and analysis from bloombergs experts. Up next, the imf sees a long and tough recovery for the Global Recovery and says of the major emerging markets, india now faces the biggest contraction. This is bloomberg. Breaking across the bloomberg, westpac beating expectations, coming in quite positive, that number listed at in from the previous october, a jump of just about on in the month of october the seasonably adjusted month on month data. We also had Weekly Consumer Confidence also seeing a rise. All of that is not potentially giving much of a tailwind when it comes to trading here in australia. Lets go over to Sophie Kamaruddin for the latest on the markets. Markets. Sophie the asx slipping from the march hike, the aussie dollar trading at a oneweek low. , theom the march high aussie dollar trading at a oneweek low. Nikkei futures in singapore opening to the downside. Checking in on one stock in sydney, this is one that has risen to a fresh, alltime high, anding its price target, with what is going on in asia on a very busy wednesday on the central bank front, the bank of korea with fresh bond by. Also currencies settings unchanged, with the gdp likely to ease the slowdown, and china, watching for updates on the first bond sales since 2017. The last round help bring down the premium on pricing in hong resumes, andading it reduced its share placement, and very much in focus across the region amid a fresh cycle with the announcement from apple on the new iphone. Shery we are watching the global economy. Severe as whatas was forecast earlier this year, but the outlook at the annual meeting is still pretty grim. Kathleen hays, our Global Policy editor, rick this down for us, and explained to us whether the imf more optimistic or just less pessimistic. If i could choose, i might choose the latter, except for the imf does say that yes, growth is going to be negative this year, however improving. It will just be a long time before it gets close to anything we would have called normal. In fact, in terms of global growth, here is what they have done. I will show you a chart on global gdp, where you can see that now, the imf is looking for a decline of just 4 . It had been 5. 2 . They at first thought it was going to be 5. 4. But look, you have to go back to the great depression, this is the worst since the great depression, to see a negative gdp. It is a bright spot and not a bright spot, because if it were not for chinas growth, there would be no growth at all in the global economy. In fact, that is part of the reason why this forecast looks better, because of china, and, in fact, they say china gdp is going to be up 1. 9 this year, again the only major economy to post positive growth this year, and next year, more than 8 . The chief economist at the imf says the china gdp is growing, topping 2019 levels, but that is not going to happen in areas hardhit by the virus. I am talking about europe and latin america. That is probably not going to happen until 23. Until 2023. Here is what she said. Within countries that are uneven, you are seeing workers, women doing worse in labor markets. We are seeing worsening inequality, and we describe it as long, and even, and uncertain as an event. Kathleen hit hard by the virus, the economy shrinking more than 10 this year, the imf, more than double the 4. 5 percent drop they saw back in june, haidi. Haidi all right, our Global Economics and policy editor, Kathleen Hays she will be in the nexta guest hour of daybreak asia. That is coming up. And surprise profit. After taking a closer look. Regulatory risk. Lets get all of the details from our reporter. Reporter it was interesting today. It was a betterthanexpected quarter, numbers wise. Trading results were good at both firms, and then each of than half of what analysts were expecting for several loans, this comes after two consecutive quarters. They looked at what impact covid would ultimately have on the economy and, therefore, their long books. Yes, they are really front and center. They posted numbers that beat expectations for their trading desk. But at the same time, there is in thea lot of fogginess outlook in terms of looking at how much they had set aside for loans and what that might ultimately look like. Yes, in for a long grind. What exactly are they saying . Hannah and this is the story of the whole year. Executive has been saying consistently there is a lot of uncertainty here, like we do not know how much the stimulus is going to help. We do not know how much our own programs are going to help versus just pushing things down the line. And that is still an issue today. And, yes. You know, i think the worstcase scenario has improved, so things will not they are not expecting things to be as bad as they once expected they could be, but the numbers still do not look right, and they are not untiling lots to show up 2021. And next up, goldman sachs, wells fargo, what are we expecting . all three reporting tomorrow, and they are bellwethers for the u. S. Economy with Huge Consumer operations. Investors will be looking at whether they match j. P. Morgan citi. Ty and and goldman, they will look at if they will do what citigroup did today. Are Bloomberg Finance reported with the latest on u. S. Banks. Coming up, apples brilliant move. The newat is inside iphone 12 that counts. A guest joins us next. This is bloomberg. Karina this is daybreak asia, and i am Karina Mitchell. Negotiator Michael Barnier said they have not advanced to enter a tunnel phase, while they say the u. K. Is ready to leave the market without a deal. Sterling fell on that news. , missing out on the latest bid for power, failing to convince the king he could reform the government, offering proof of majority among lawmakers and repeating calls for the minister to step down, however, they say that anwar failed to present names. Arrested thailand have protesters and put pressure on the king. Demonstrators say they will press on. They want new elections and a review of the constitution and curbs on the power of the monarchy. The king is protected from criticism by lengthy prison terms. Lobal news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. I am Karina Mitchell. Haidi . Will the move to 5g lead to growth . Lopez with is Maribel Lopez research. Apple, what about how the market reacted overnight . Hand, 5g isthe one going to be the biggest upgrade we have seen in years, but on the secondhand, we will see that consumers will be buying lowerpriced phones. So in that respect, we also saw optimism associated with the pricing of the mini, but do you think that will turn out to be an overall negative . what we are doing is shifting the mix to lowerpriced smartphones, so it is hard to outperform topline revenue, but unit sales should be tremendous. The iphone loss was highly anticipated with 5g, and we believe that many consumers were waiting for purchases for the iphone to come out in 5g, so this is a good move for apple and should create a good quarter. It was highly anticipated because it was somewhat late to the game, right . Did you see any of the concerns addressed, and what is the expectation, especially in the u. S. , where it seems that the networks may not be as advanced as in other parts of the world, like china . 5g was not ready, and i think they do not want to sell a phone that could not perform at peak. Does it really matter . No. Right now, if youre buying a smart phone, you want a smart phone that you will be able to use in one year, two years, three years, so i think this is great for apple to have a five g phone, whether or not the networks are 100 available. Years ons, i have mine. I am wondering what the changes are. Was there anything impactful . There was a lot of talk about the cameras. Maribel the thing that drives sales are cameras and gaming. Apple was talking about how their new software in architecture benefited both of those, and i think that is exactly the way to go. Between speed and the tech, they have really done a lot of advancements that are things the consumers really care about. So given the fairly robust Consumer Recovery starting to take place in china, how much reliance on the takeup of the new iphone in that market . Because, interestingly, all of these big platforms actually did not stream the product launches then, which is really the first time they have done this in many years. It is usually such a big deal there. Maribel one of the things we thought was that asia was going to be a big market, but they were overpriced in what they were offering, and now, they have got a range of price points, so i think they can show better in the asian landscape than they have in the past. We also see the incentives being offered by carriers. To what extent is that almost masking the true price of these handsets . Looking at the price points in the 15 a month range, this gives a 5g phone into a super category with a high quality network, and i think that that does mask the price, but that is not a typical in the u. S. Market. That is not atypical. Investors have been shying away from that, and now, we need to get people on these networks, and you need a reason for customers to move into a new network and switch carriers, so they are all trying very hard to find good incentives and programs to make sure they get the lions share of the new net subscriber ads Going Forward. Shery and does this make up for the expensive or original one . Ribel i believe the pod has been struggling to find a home, so to speak. It is a product that could be very successful, but, really, amazon and alexa took it away, and they had air wide range of speakers and doing a better job in terms of delivering the right content, so i think the positioning you are seeing apple do now is they are saying, hey, we have got a lowerpriced device and integration to do the things you want to do and turn into more for their home then i want to ask for some specific thing on the internet, so really trying to recast the expectation of why you would need this, how you would use it, and really much more about audio and managing your life then it was about statistics or other things, such as what alexa was doing in the past. It was about statistics or other things. Shery whoever wins the election, it seems there is bipartisan support in washington to somehow regulate these giants. we have seen posturing, and it is difficult to unwind at this point in time. I do believe there is the serious antitrust issue, and one of the things they might start looking at is mergers and acquisitions activity. I think that might be more for the tech industry, in general, because if that happens, then and ity not invest much, might stall. Venture capitalists want to invest, because they buy at high price tags, and that is what they need. Shery it was great having you on, and thank you for your pez with, maribel lo lopez research. Alongside apple and the highly anticipated iphone, a fight for subscribers during the upgrade cycle, verizon told bloomberg why now is the right moment for 5g tech. For this been waiting moment. I told the market we want to launch nationwide at the right commercial moment. This is the right commercial moment. We have the nationwide and the network. This is something we want to give our customers, so this is an exciting time for us. We have been driving the things we and some were late on 5g, i would say we are two years ahead of where we were five years ago where we thought 5g would be today. We are very proud of it. It is interesting that hugeon and at t, in this upgrade cycle, free access to your phones if you go to the more unlimited provision to offer, in terms of access. I am interested in who is going to be buying these phones. As mentioned, we are in the middle of a pandemic, the middle of an economic crisis. How affordable, how realistic is the super cycle with the new apple phone . Hans we are in a tough situation with the pandemic and the economic downturn, but, clearly, we have seen a lot of excitement around the 5g phone, that we are going to see. We are geared up to receive all of the demand that there is an seeing that the network is perfect. That is what we will see the next couple of weeks when it is coming out, and hopefully the phones can be delivered, but personally, i believe many people would love to get the 5g phones from apple on the verizon network. And so, Going Forward, hans, building up the 5g capabilities but what verizon needs to do to keep customers happy, what has been the increase in capex, if any . What we did look at in the beginning of the year, when we came into the pandemic, i think the second week and it started hitting, we decided to increase guidance for this year. We thought it was the right thing to invest more in the market. We did not know about the wireless network. It has held up very well. There was still the capital we decided to increase at the beginning of the year. We think it is right for our customers. Now, we will come back and do guidance for the next years to come, but right now, we would increase the guidance in the beginning of the year. Can you give us a sense of how you will fund the debt, or haps, to make those investments . Think if you look at our Balance Sheet, and member, it is only two weeks, but we offered our Second Quarter reporting. For the first time, we had the acquisition on our Balance Sheet. A terrific job of our team over the years coming down to around ebitda, and we continue to think about Climate Change and the economy, and we are one of the few Companies Investing in Climate Change. This is the second one. The first one we did in 2019. We had the first billion, now we are going to the second billion, so i would say the team is doing great to position our Balance Sheet as strongly as it needs to be. Verizon andu join becoming the ceo, ericsson, the company all about structure, and what about providing Global Access customer it was big in china, for example. You know u. S. Markets versus the rest of the world. How much do you think the u. S. Is competitive with its 5g rollout with china . Is it and that . Neck and neck . Hans we were first with 5g computing and with 5g commercial smartphone, and we see in the u. S. Now with the iphone, i think we are clearly leading in the 5g world, and i am proud at what we have done in verizon. Also, the industry, there is a lot of other companies in the position, so i feel good. That was the verizon ceo talking to bloomberg. Big newsmakers over on bloomberg radio, broadcasting live from our studio in hong kong. You can listen in at radio plus or at bloomberg. Com. Plenty more ahead. This is bloomberg. Is a quick check of the latest business flash headlines. Hsbc left off the list for the First Time Since beijing resumed deals in 2017. The sale will include 13 banks, four from china, and other such as bank of america, citigroup, and standard chartered. The reason for the omission of hsbc is not clear, but it has been criticized in Chinese Media in the scrutiny by u. S. Of huawei. And making progress in winning approval is needed for a dual ipo in shanghai and hong kong, note affinity of timeline for agreement with sources saying no definitive timeline for agreement with ant. Citi, jp morgan, and Morgan Stanley offering as sponsors for the hong kong sale. It may raise a record 35 billion. Be doublingaid to its stake in a Music Company before the option expires. Last year, it led a consortium of the Biggest Music Companies from vivendi in a deal that was valued at more than 35 billion. Tencent and their partners have a right to raise their stick to 20 at the same valuation before january 15 raise their investment to 20 . To considering bankruptcy ease debt loans as the coronavirus keeps moviegoers away from theaters, we have been told that lenders are having talks among themselves about new financing if amc decides to file for chapter 11. However, sources say no formal proposals have been exchanged with amc, and the situation remains fluid. Coming up on daybreak asia, xi jinping talks from shenzhen about the greater bay area plans. And a secretary joins us exclusively in a moment. We also have that market and tokyo inole and tokyo. Nd 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. Shery welcome to daybreak asia. From bloomberg World Headquarters in new york, im shery ahn. Haidi i am haidi stroudwatts in sydney. Asian markets have just open for trade. Facing declines on fears of recent gains have outpaced hope for stimulus, according to the u. S. The imf warning the post virus recovery will be long and uneven. President xi keeping is set to lay off his vision for china to drive new Economic Growth and draw hong kong closer to the mainland. The outlook for the philippines as the coronavirus hammers their economy. We are joined by the finance secretary, carlos dominguez. Shery breaking news when it comes to gdp numbers out of singapore. Better than expected when it comes to the third quarter. Year on year basis. 7 , thats an improvement for the 13. 3 contraction of the economy we saw in the Second Quarter. Still worse than expected. Taking a look at a quarter on quarter seasonally adjusted basis, contraction of 7. 9 . Rebound from 13. 2 in the preceding quarter. A lot better, given not as good as expectations of a rebound of 35 points are 30. 5 . Recovery from the circuit breaker, which essentially had the economy grind to a halt in april, may of this year to get the covid19 infections under control. Taking a look at the breakdown by sector, particularly bad when it comes to the construction sector. Declineg the almost 60 we saw in the previous quarter year on year. Construction in the citystate remaining week due to the need for Construction Companies to keep in place covid19 safe policies and arrangements. Manufacturing was also sluggish. This kind of goes in line with what we heard yesterday, about a quarter of the city states economy was deep scarring. Shery we do have the military authority of singapore coming out with their policy decision. No change, as expected. They have kept the width and center of the currency band unchanged. The other band is at 0 , as expected. Int time when they met april, they eased. They set the slope of demand to 0 appreciation. That was the same level we saw during the financial crisis. They just left it unchanged, as expected. They say core inflation is expected to stay low. The Monetary Authority assesses that on a cultivated policy strand, it will remain appropriate for some time. All see singapore 2020, items cpi contraction of half a percent to 1 . Also that their 20 Economic Growth will contract by 5 to 7 . We also have news on evergrande. They just raised 555 million in reduced placement to pay debt. They are the most indebted property developer. They are raising 4. 3 billion hong kong dollars in share placements. They also agreed to sell up to 260. 6 5 million shares. 16. 5 hong kong dollars each. Lets turn back to the singapore numbers and get more on them with our chief asia economics correspondent, edna current, who is on the line. Fromeally much has changed the Monetary Authority, as expected. Could they really have done much, given that some of the output gap seems to be structural for singapore . Yeah, i think they really are treading water. Thats the message this morning. They want to keep policy in the accommodative stance to get the economy back on its feet. We saw from indicators that clearly, still deep in contraction. But signs it is slowly pulling out, especially on a quarter by quarter number basis. We know what the dip in cases and the gradual reopening of the economy, but there is little the central bank can do at the moment to get it to where it needs to be. A lot of the work needs to be on the fiscal side. Targeted support from the government. Most important, keeping the virus contained so people can get back to work and school. What will add to the theme of steady recovery that will add to the theme of steady recovery. Haidi pretty much everywhere around the world, we are hearing fiscal spending is likely to need to do the heavy lifting. We heard yesterday that up to 20 of the economy faces deep scarring, it may never recover. A great portion beyond that will take a long time to recover. What kind of targeted measures could potentially be accelerated to get that going . You have to think around the world of travel and tourism, which is so important as a global business. Anything the government can play a role in will be critical to the economy. Making sure Business People are crossing the border again. For example, malaysia in august, even on a highly restricted basis. Those reopenings would still have a dilemma. Scarring will begin. Then the people with businesses no longer feasible will be on the sidelines. The government will have to account for those people who lost their jobs. Singapore airlines, job cuts, there will be a lot of rescaling, retraining needed. Not just in singapore, but across the rest of asia. Haidi our chief asia economics correspondent, edna curran. We will get more analysis on that in our next big interview just ahead. The singapore transferred miniature the singapore transport minister joins us. Lets look at the market reaction. Soft start for japanese stocks, nikkei, and topix. We are seeing the yen, a little change this morning. Jgb higher amid the risk off tone we have. Buying,ee some potentially given best on stimulus. Nikkei reporting a stimulus plan will be compiled as soon as next month. Watch,ook at the bok on no change expected for the key rate. Steady,an won holding 11. 48. Kospi opening lower. Extending declines. We are seeing cj logistics seeing a choppy start as we get a report that neighbor is looking to buy stake in tj groups logistic arm. Lets look at korean apple suppliers, the samsung and lg display, a mixed bag. Lg display gaining ground, trading at a midseptember high. Apples unveiling of its latest iphone. Names like sony under pressure. Thats more due to the Downside Pressure from japanese stocks, broadly speaking. Thats a quick check of the aussie shares. Lets get a quick check of the aussie shares. Now little change this morning. Tech shares, the likes of after pay, trading around a high. The aussie dollar is trading near a oneweek low. Offshore yuan stabilizing, expected to be a key support for the currency ahead of xi jinpings speech. Hsbc hasill ahead, been locked out of chinas 6 billion bond deal. We discussed the options for repairing its tense relationship with beijing. The philippine finance secretary joins us exclusively. He says restrictions must be further relaxed to revive the economy. This is bloomberg. Youre watching daybreak asia. Im Karina Mitchell with the first word headlines. Prospects of a new stimulus package in washington are dimming, with nancy pelosi house revamp white its latest offer. Mitch mcconnell pushing a smaller strategy President Trump has already rejected. The speaker says mcconnells proposal is a nonstarter adding in the wake of the president s go big tweet, democrats have more leverage than ever. The International Monetary fund says the world faces a slow and uneven post virus recovery, although its offering a less dire view of the recession. They now see global gdp shrinking 4. 4 this year, down from over 5 in june. That would be the deepest contraction since the great depression, with covid19 having killed millions and shut down vast parts of the economy. The imf is slashing its outlook for india even further. Saying it now faces the largest contraction among major emerging markets. Gdp is expected to shrink by more than 10 through march. Far worse than the 4. 5 decline seen in june. India imposed the Largest National virus lockdown in march, causing the economy to shrink by 24 in the june quarter. Global news, 24 hours a day, on quicktake,bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell, this is bloomberg. Haidi the imf says the World Economy faces and uneven recovery until the pandemic eases. They offered a less dire view of this years recession. This is also the same view Bloomberg Economics has of the philippines. Kathleen hays is with us now. Ofhleen the imf, in terms the 2020 growth forecast for the philippines, cut it to more than an 8 decline for about 3. 5 . The pandemic taking a huge bite out of the economy. We will speak with someone who can shed light on where the economy is, and what policy is now, and where it will be headed. I want to introduce carlos dominguez. Hes the finance secretary of the philippines. Great to have you back. Happy to be here. Kathleen a year ago, we got together in person, not virtually, at the imf meeting. It was a very different view. Where is the philippines now . How do you think the recovery momentum looks since the lockdowns were loosened . You have to start from where we started off. Instituted a series of reforms, essentially bringing to thetax collections highest ever in 22 years. So we were well prepared for this crisis. Know we were preparing for our build, build, build, it is very much helpful for us. Is veryw for us, it strange. Inflation rate is low, Interest Rates are low, probably among the strongest in southeast asia, and we have a very High Research quiteentially, we were well prepared for this. Revenues through taxation has dropped because of the drop in demand. Shortfallering the through borrowing. First of all, we borrowed money agencies, thenal hit the market last april with a 2. 3 billion issue. Kathleen i want to get more points. This is a good way to start. You had a good cushion going in. You just had a 16 gdp drop. What more may you need to do . In particular, the government got its latest advance of 540 billion pesos. Are you inclined now, even with the good cushion you came in with, to make use of the additional 280 billion you can borrow from the central bank . At the moment, we dont need to do that. But that is in our reserves. So we believe the Borrowing Program and our current revenue flow, which incidentally, is 8 over our latest estimates for tax revenues, is going to hold us a bit. We are keeping the balance of our product line with the central bank in reserve. Kathleen your government budget documents show shortterm borrowing could hit one trillion pesos. Up, thatsas set about how much you may need to borrow next year. Yes, thats about right. Kathleen you do anticipate borrowing more from the bank . Yes. Said, our First Options are to go back into the commercial market. If the economy doesnt perform as we expect, we will go back to them. Kathleen do you have any concern about crowding out with private followers in the private borrowers in the philippines . No. Our administration has injected a lot of liquidity into the reducing the requirements of banks. Requirements around 18 . Now they are probably around 12 . For every 100 basis points down, its about 100 billion pesos. I want to ask about what you might do, in terms of every central bank being asked, do you have more ammunition if you need to do more . Do you think there might be the need for the third pandemic relief for the philippines . At the moment, no. We are seeing a very strong recovery east of the economy. We have a very good economy. It has forced us to bring it down. A very strong recovery through jobs. In lowest jobless rate was may. That was 17 . 10 joblessness rate. To about 5 orn 6 . Kathleen any new taxes you might introduce . Will you selloff assets before the president s term ends in 2022 . Really seeing any when the incomes are down, its not a good idea. Assets, we selling are not that desperate yet. Most of our assets are in real estate and in mining operations. The Real Estate Market is uncertain at this point in time. It has been Holding Quite well. Kathleen how about the risk of rising defaults . Do you see that bubbling up at all . The concern it could be a Systemic Risk into the philippines . Are you talking about the private banks . Kathleen certainly. We are prepared for that. Legislationduced vehiclespecialpurpose so that banks can unload on the assets. During the crisis, it took almost five years to set this up. We are just about to get the legislation passed fo r this. We are also asking the legislators for the government which will a company invite Multilateral Agency problemsts to address beyond liquidity, solvency problems in the most Important Companies in the philippines. So that is coming along. Its going to be Something Like that. Kathleen you mentioned the peso, about how strong it has been. I want to step back in the big picture. We have seen the scramble for dollars through the covid crisis, we saw the fed swap lines, record dollar issuance, why did the worlds governments and Companies Need so many dollars right now . Finance, aretary of businessman, the ceo of Philippines Airlines before, what is your sense of this . In the crisis, everybody they aremake sure healthy. Because we dont know how long things are going to last. I completely agree with what the imf said, the recovery will be longer than expected. There will be a lot of ups and downs. So we want to make sure we have chest. Ammo in our war kathleen quick final question before i let you go. The airlines, you were in the Airline Industry, any special steps you might want to take or need to take for the Airline Industry in the philippines . Right now, we are discussing with the airlines. We have been talking to them since march when the demand dropped. The airlines have gone through five or six isolations of the rescue program. We are prepared to help them, but we are not going to lead the way. We are private sector, we expect the private sector banks to chip in. We are going to be there for them when the entire financial packages ready. Kathleen thank you so much. Philippine finance secretary, carlos dominguez. Look forward to speaking to you again. Back to you. Shery thats Kathleen Hays. Lets talk about the global economy. The imfs chief Economist Says the path to economic recovery is long and uncertain. Our chief economist is also concerned about global debt and and theomberg low rates possible growth rebound could provide hope for nations to ensure their debt load is sustainable. It is uneven across countries. You see advanced economies doing better than emerging and developing economies, excluding china. Within countries, its uneven. Workers, youth, women doing worse in labor markets. Rising inequality. The poor are getting poorer. Havingo, manufacturing strength and recovery on a month to month basis. On the other hand, Services Sector either stalling, because we are still living with the virus. You talk about the effects of this virus being longer. Does that mean the damage is going to be ultimately greater, despite the more shallow trajectory . Overall, this is the worst place since the great depression, and we have very prolonged recoveries. For most countries, with the exception of china, they dont even byto 2019 levels, end of 2021. There are regions like latin america, where that takes until 2023. In terms of over the mediumterm, we have about 28 trillion that has been lost because of the crisis relative to the prepandemic levels. So this will be slow. Its why we describe it as a long, uneven, and highly uncertain dissent. What just happened . The imf saying dont worry about debt, governments just spend to support your economy. That seems to be coming to some type of halt. Stalled talks in the u. S. , in the u. K. , targeted furlough program. Still cant get the Recovery Program passed in europe. How do you look at it . The number one thing countries need to do, and work more closely together, is on ending this health crisis. Is about science, we are getting the prospect of vaccines, better treatments, and testing, but not enough production at the scale required to reach everyone in the world. If that doesnt happen, it will prolonged the recovery prolong the recovery. We are asking them not to prematurely address support, but continue providing support, and you can be targeted, because countries are in different stages of lockdown. You can be more targeted in terms of how you are operating. It is not retracting support at this time. The countries that dont have the finances, they will need international assistance, conventional financing, aid, debt relief. Thats needed to ensure we are not going to knic this knock this economy off of its path for the foreseeable future. The crisis will go on for a long time. You made that clear. Debt levels will be significant as a result. Enormous drag will the debt many countries will be carrying into the future . We have debt now projected to be a record high of 100 of global gdp. This is also at the time when private savings are high, and private investment is very weak. Its part of the reason Interest Rates are very low. At this point, they are expected to stay that way for the foreseeable future. Truly extended Interest Rates stay low, and we get a growth rebound in 2021, many countries will have it stabilize and start coming down. That said, this means the window of opportunity to build a mediumterm fiscal framework to make sure your debt is going to be sustainable over the next several years. In some cases, that will require cutting back certain expenditures, which in many cases, are wasteful, but also greater revenue generation. In some cases, making sure the corporations pay their fair share of taxes. All of this, greater transparency, it will be important. But we have a space because of the world where we are in, with low Interest Rates. Imf chiefts the economist speaking to bloomberg. The first data out of singapore amid the stimulus stalemate and virus develop meant. We get our team with us to keep an eye on the dollar cross, we tell you why. This is bloomberg. I sent your new prescription to the pharmacy. Any idea how much it will cost . You have a choice. Insurance or goodrx. I have insurance. Insurance is not what it used to be. People struggle to get their prescription covered and prices keep rising. I recommend goodrx. You get free coupons to save on your prescriptions. [narrator] compare prices to get the best discounts. Goodrx, smart. [narrator] stop paying too much for your prescriptions. Download the free app today. So youre a small bor 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. Haidi lets take a look at asian earnings. Taking in when it comes to earnings, markets in this part of the world looking lackluster at this point. Enthusiasm with asian Stocks Holding a sixday gain. Japan leading the drop with a marginal loss of. 2 . Nikkei two the biggest drags. Kospi is heading lower,. 10 . Keep an eye on apple suppliers, given the potential upgrade cycles weve got. Its a mixed bag for apple suppliers in japan, as in south korea. In australia, financials weighing on the asx 200, retreating from a march high. We see some curve flattening extended to asia on vaccine and a stimulus worries. Iscking on the yen, it holding fairly steady amid the risk off tone. Action in currency markets. Jp morgan suggesting the yen may get a boost from what they see as a collapse in global core yield. Also highlighting the aussieyen cross, which is holding a today drop, below the 76 level. Then a boost in the wake of the on itsort and the mas policy position holding steady. The offshore yuan, we see consolidation. Jinpingse rate on xi speech in shenzhen. It looks like the support may be the level keeping it steady today. Shery lets get more on the markets with Mark Cranfield. We got those gdp numbers out of singapore. We are getting the latest thirdquarter gdp growing on annualized, 35 point 4 quarter on quarter, beating estimates. We also have the zero currency appreciation left by the Monetary Authority as expected. You are watching the seeing dollar and specific crosses. Indeed. Particularly against the pound. In the last 24 hours, you can see it is significant in the way singapore and the u. K. Have had situations with the virus. Singapore reported 0 new cases of the pandemic in the last 24 hours. The u. K. Is still registering new numbers in the thousands. They appear to be rising. Considering a possible second stage of lockdown. Incredible contrast to singapore, almost coming out of it now, in a better situation. That should be reflected in and Economic Growth in the period ahead, and the relative performance of the currencies, as well. So singapore Monetary Policy on hold. Mutual stance with the risk of the bank of england the going further. Possibly even into negative rates if the u. K. Contraction is deep enough. Certainly the outlook over the next few weeks, possibly months, is better for singapore in relation to the u. K. The u. K. Going into winter, which will make it difficult for the pandemic. Certainly theres a chance the Singapore Dollar will have strength compared to the pound in the weeks ahead. When it comes to global yields, do we expect to see them fall . Still uncertainty about where stimulus talks will land. Not all parts of the bond market are convinced we are going to see inflation. Delaythe shortterm, the to the u. S. Fiscal stimulus is a very big story not just for the u. S. , but for the world. Sot happens in america is important for our Major Economies around the world, possibly with the exception of china. If there is going to be a long delay in getting the next stage of fiscal stimulus, which most agree is fairly needed, the other way it comes back to the fed, they will have to do more with Monetary Policy to feel they are considering some steps. They are a bit reluctant, but in the end, there will be no choice for them. So that probably means an increase in bond purchases or other majors to help stabilize Financial Markets and make sure there is plenty of liquidity. That will certainly weigh on yields, even though they are very low in the u. S. And globally. There is still room for them to go further. The fed does not want to go into negative yields, but they still have room to push market rates closer to zero, particularly the longer end of the curve coming down a bit when you compare u. S. Rates of european or japanese, they are still well above those. Certainly theres room for yield curve flattening of the fed does an increase qe. Breaking news out of the bank of korea. They have left their key Interest Rate unchanged, at. 5 . This was pretty much expected. We heard from the governor that the central bank would maintain an accommodative policy stance with the rate and nonrate tools, and we see the bok has kept the rate unchanged, at. 5 . 21 economists surveyed by bloomberg had expected no change. Returning to you, we had seen incredible strength in the korean won. At one point rising to an 18 month high. What is the expectation for policy Going Forward in korea, and how it will affect the currency . The bank of korea is probably relieved of the pboc has started to trim strength in the yuan. The korean won was following the direction of the chinese currency, which has had a very strong period over the last few months. So if theres going to be a little bit of a stall in the strength of the yuan, that helps korea, as well. They will be happy to retain policy as they have done. I think they would like to use other levers, the fiscal side, as in most countries, has been important for trying to get economies going. They also benefit from the fact china is one of the fastestgrowing economies in the world at the moment. That will definitely spin over to korea and other parts of asia. For the time being, it makes sense for them to keep a stable Monetary Policy. In terms of currency, it will be very closely linked to whichever direction the chinese currency takes, each for the moment, will be a sideways move and consolidates after a very long period of strength, somewhere around 6. 7 percent, 6. 75 , so the korean won can keep it around that in the shortterm. Shery Mark Cranfield with reaction on the markets from the bok rate decision. Lets bring our Global Economics and policy editor, Kathleen Hays, to give us her reaction. Pretty much as expected, especially after what we heard from the governor. Kathleen exactly. Eventually,d if they do anything, it can be more stimulus, but not rates. The rate is already very low. Maybe using nonInterest Rate measures is part of it. Countryause korea is a that hasnt suffered as bad as others when it comes to the pandemic. However, it still has the cloud hanging over the economy. The key rate at 0. 5 . Over the past couple of years, even before the pandemic hit, the bank of korea has been moving the key rate lower. You may remember the key inflation gauge in korea was briefly negative, 0. 1. It has climbed back above that. Prudent it seems the thing policymakers see is waiting and watching, and waiting to see how the pandemic goes, how the economy goes, how fiscal stimulus ago. You can see korean bond yields very low, as well. That helps the government if they do want to do nonrate measures like buying more bonds, thats in place. Any kind of Debt Financing they want to do, low bond yield helps. The bank of korea, if they needed to, could take steps to cap bond yields. At this point, no need to do that. I think what they will be interested in is hearing what the bok chief says that the press conference, what on his mind, what he says about the pandemic, that will be the next thing to move the markets. Haidi all of this hinges on is forhe next leg potentially a vaccine, the pandemic, because part of this recovery has been because of the social distancing rules being relaxed, and more people being out and about. Kathleen every Government Faces a big tradeoff. You can keep an economy locked down forever, but you made you may be giving the citizens more dire outcomes. You try and balance that, get the citizenry to do the job of the social distancing, wearing the masks, washing hands. But when kids go back to school, when sporting events are allowed to start to reopen, if you can go to a bar, its hard to social distance, etc. That may be the lesson that has to be learned on both sides. And a vaccine, number one, which would make people more confident that others will not get the virus and give it to them, and also better treatments, treatments that work faster, that are good enough so people realize even if they get the virus, it is not a death sentence. It seems over the past year, we have seen starting in china moving around the world, many people dying, many damaged by their iris cash by the virus. If treatments can be effective enough, commonly distributed, out there for everybody, it may be another factor governments need to see that consumers and businesses need to see, as well. Kathleen hays, our Global Economics and policy editor. You can also turn to your bloomberg for this. That and allows us with bloomberg analysis with bloombergs expert editors. Xi jinping is expected to send a powerful vision to the world when he lays out his plan later in shenzhen. We will be asking questions to ben simpfendorfer. This is bloomberg. Karina this is daybreak asia. Im Karina Mitchell with the first word headlines. Unionk. And yo european overiled to make progress Boris Johnsons deadline. Negotiations have not moved forward enough to enter the tunnel phase. Johnsons spokesman said the u. K. Is ready and willing to lead the Single Market without a deal. Sterling fell on the news. Malaysias Opposition Leader seems to have missed out in the latest bid for power, failing to convince the king he has the support he claims to form a government. He says he offered proof of a majority of lawmakers, and pleaded for the Prime Minister to step down. But it is said he failed to supply names and advisors set to abide by the constitution. Police in thailand arrested dozens of protesters aiming to be a seizure the Prime Ministers office in bangkok and put pressure on the king. Demonstrators say they will press on and are prepared to stay until the weekend. They want new elections, a review of the constitution, and curves on the power of the monarchy. The king is protected from criticism by tough laws that mandate lengthy prison terms. Household sentiment in australias sword in october, a second straight month of about 10 gains of progress containing covid19 combined with government stimulus and potential rba easing. 12 umer confidence almost after an 18 jump in september. That is the highest level since the middle of 2018, as often is now outnumbered optimists outnumber pessimists. Journalists and analysts in more than 120 countries. Im Karina Mitchell, this is bloomberg. Haidi with xi jinping delivering a speech in change in later to mark the 40th anniversary of chinas first social Economic Zone, hes also likely to touch on immigration of the greater bay area, a region that includes hong kong, macau, and nine cities. Lets take a look ahead of the benpolicy speech with simpfendorfer. Shenzhen is where we saw him deliver his policy address and where he launched the Reform Initiative that really changed the course, particularly of the chinese economy. What do we expect to hear from xi . Is it going to be significant, in terms of the coming decades . Look for references to selfreliance. Seeking to move up the Technology Value chain, reduce alliance on the products, there in a good position to do that. They are also looking to reduce consumption, reliance on exports. Shenzhen is a fabulous place to run pilot schemes to achieve this. Weve had hints of what to come with the policy document released referencing land, labor, technology, so a broader xi can talkjects on. All of it is focused on freeing up, liberalizing the market, finding new ways to grow at a time when china is grappling with a slower growing, lets globalize world less globalized world. Haidi could it replace hong kong . If not, what role does hong kong play in these grand ambitions . We know at the moment, the city is in a state of existential crisis as the financial hub. It is an important question. Hong kong and shenzhen are very different economies. Shenzhen is larger, technology driven, growing rapidly. So its very unlikely it will replace hong kong fully. Hong kong itself is a far more traditional economy, more reliant on banking. More than likely, we will seek go together. Two to one important way would be labor mobility. We see skilled workers moving between the two economies already. They seek to find those synergies. Shenzhen and hong kong are very different. Shenzhen will not replace hong kong. More likely, we have to find ways for the economies to grow together. Thats very much what xis speech is about today. Also, hong kong in the private sector to find ways to profit from shenzhens rise. Successhy is shenzhens important to him right now . Shenzhen is very much a reflection of the success of the technological change, not only in china, but globally. Shenzhen has to succeed, has to demonstrate the way forward for the rest of the country. The old models of growth are no longer working as successfully as in the past, so we do need to switch to those new models. Shenzhen really offers a fabulous demonstration of how that can be achieved. Over the lastso, 40 years, demonstrated its ability to be agile, to respond to changes, domestic and global conditions, especially the rise of new technologies. Thats why xi put so much faith and trust in the city to shine a light on the path forward. Shery can china really grow and advance scientific and Technological Research to the extent he wants without really greater freedoms . We heard the last two weeks that there was this new browser app where chinese citizens could see these banned foreign websites, yet it was just closed down on saturday without any warning. So can they really walk the fine line between meeting the Technological Advancements and that advancement coming with more freedom . Findina will always different ways to innovate, and capture its greatest advantages scale. That scale is about political stability. The ability to develop platforms that reach tens of millions, hundreds of millions of users. It has been an enormous benefit to the companys technology. So we can always draw direct line comparisons between the Way Technology companies have developed in other parts of the world and those in china. So the story will always be a little bit different. At this point in time, political stability, economic stability, are enormous benefits to Technological Advancement in china. Shery we really appreciate your views and time with us, looking ahead to the key policy speech. That is ben simpfendorfer. Dont forget, if you are away from the screen, you can find the indepth analysis you need and the big newsmakers on bloomberg radio. Listen inside the app, radio plus, or bloombergradio. Com. Moorehead. This is bloomberg. The Chinese Government is expected to price a potential 6 billion bond sale as soon as today. Uncertainty around the u. S. Election weighing on investor sentiments. Hsbc was left off of the list of banks arranging the debt sales for the First Time Since china returned with big annual deals in 2017. Our Senior Editor joins us now. Is this a sign of some broader trouble for hsbc . Front, still unclear why they were left off of such a prestigious deal. The bank said it has a Good Relationship with the Chinese Ministry of finance. But it comes at a sensitive time mendhsbc is trying to fences over several issues with china. Last month, china said the bank can be put on unreliable entities list. It all poses a real threat to its plans to expand in china and being left off of the bond yield is not a good sign, as one likes to speculate. More broadly, coming at a pretty turbulent time. What are you expecting . Its hard to tell right now. We are expecting some kind of price talk today, and we will go overnight to international investors. The sale was moved up to october from november last year. Probably to get ahead of the u. S. Elections. Last year, demand was triple the size. Judging from the type of money flowing into china, it looks like they will be able to pull it off. Shery on the corporate level, evergrande came in at half of the expected range. What is it telling us . It offers developers some breathing room, but signs show a lot of jitters surrounding still. The shares are sold at a hefty discount, almost 15 , which was much wider than earlier this year. So its a bad sign if they want to reduce debt by future equity sales, because it will need to deleverage heavily over the coming years. As we saw, they are offering steep discounts on stay at home sales during golden week. So margins are really under pressure, as well. Haidi our senior china finance editor ahead of the china bond sale. Thats get a quick check of the latest business flash headlines. Add group is making progress winning the approval needed for its it has no definitive timeline for an agreement. Sources tell us it is a joint for the mega listing. And morganciti, stanley are acting as sponsors in hong kong. It may raise a record 35 billion. Tencent is set to be planning its stake in universal music before it expires in january. Last year, it lit a consortium that brought 10 of the Music Company from vivendi, a deal that valued more than 35 billion. Tencent and its partners have the right to raise their holding to 20 , the same valuation before january 15. Apple launched its latest iphone , wall street expects it to at a virtual event, apple showed the iphone 12 in a variety of colors and screen sizes. The 799 for the smaller version, called the mini, 100 less. Pro and promax versions go as high as 1100. All of the new devices support 5g technology. Shery in asia, we are watching apple suppliers. Take a look at the taiwanese stocks we are watching. Fact, the highest on record. They have been gaining for five consecutive sessions. We are waiting for the open in taiwan to see how they are trading. Groundsn also gaining for the past three consecutive sessions, a september 21 high. We could have seen a little bit by the rumor, and thats sort of what happened to apple when it fell in regular trading in new york after releasing the new iphone 12. Checking broader futures trading at the moment, we see taiex futures gaining around. 10 . Tonese a 50 futures up percent. 2 . We are continuing to watch the chinese yuan. Consolidation after the sharp fall on monday. U. S. Futures higher by. 2 . After u. S. Stocks retreated from six week highs. Outlookp, the market with is here in a moment. Then we are joined later in the hour by dickie wong. Thats it from daybreak asia. The startok ahead to of trade in hong kong, shanghai, and shenzhen. Standby for Bloomberg Markets. china open. Is 9 00 a. M. In beijing and shanghai. Welcome to Bloomberg Markets china open. Im tom mackenzie. And i am yvonne man. We are counting down to the open of trade in the chinese mainland and hong kong. Stories. Your top President Trump is set to lay out his vision today for china Economic Growth and drive business t