Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

Three virus levels. Investors are not buying the idea that the sectors prices have finally passed. The Company Behind k pop sensation bts prepares to take the stage in seoul. Big hit hopes to be a big hit on the korean stock exchange. Paul markets are just opened here in sydney. For a look at whats going on, lets go to sophie. Sophie sydney stocks gain ground. 1 , resuming the advanced after stalling and to retreat from a march i on wednesday. We have the likes of bhp and providing a boost while banks are under pressure and focus is on the rba governors speech in which he signaled the desire for more state funding while indicating that there will be a lower for longer rate environment, likely to see further easing ports 10 basis points, also indicating there will not be rate hikes for at least three years unless there is more sustained progress on jobs and inflation. Those remarks did see pressure come through on the aussie dollar, seeing an earlier push. Flipping the board to check in on the mood in the rest of asia, check in on whats going on with nikkei futures in chicago. We are seeing nikkei futures, some downside potentially in s p eminis. A changed. The dollar reversing course after being weighed overnight on stimulus concerns. Check out the offshore yuan holding below 672. Strength coming through given they are focused on the rate differential for china versus u. S. Today on the calendar, have earnings due from fast retailing. The Third Quarter earnings season in asia very much underway. Shery. Shery to our top story, nodeal in sight. Hopes of a stimulus bill fade as democrats and republicans remain far apart. I would say at this point, getting something done before the election and executing on that would be difficult. Just given where we are and the level of details. We will try and continue to work through these issues. Nowy the two sides are accusing each other of politicizing the negotiations. Josh wingrove has the latest. This is a very political issue. We are 20 days away from the president ial election. Which side needs an agreement more and where can they find compromise . And think both sides are telegraphing that they think that donald trump needs an agreement more. Donald trump blew up these talks and then came back to the table. Nancy pelosi really has not budged. Democrats who want her to get the best deal possible would applaud that. Republicans are accusing her of not being willing to strike a deal, to be flexible. The key update from the mnuchin for mnuchin is he alluded to significant compromises here that opens the door for something but he is also saying he does not think deal will come before the election so we should all temper expectations accordingly. He and pelosi are due to talk again tomorrow, thursday. We will see where things go from that. The president has asked for a or go homebig type of deal. Politicians like that sort of thing. Enough, weat was not also have these hearings into the ascension potentially of Amy Coney Barrett to the Supreme Court bench. What have those hearings been focusing on . Faira fair complete accompli, isnt it . It does not appear the democrats have any way of stopping this. Theyre questioning has been more about Health Care Policy and that sort of thing. The backdrop is that poll after not onlys donald trump losing the election himself but also losing the senate. For some republicans, this might be an issue of just making sure they get one last Supreme Court justice, if indeed they think a wave is coming to sweep democrats into office, november so that is the background. There is nothing to suggest Amy Coney Barrett will not be confirmed before the election. She really has managed to avoid significant gaffes. That democrats dont seem to be going for the jugular or thinking that they can. Paul thanks for joining us. Lets get a check of the first word headlines. Wells fargo has fired more than 100 employees from seeking Coronavirus Relief funds. Sources tell us the bank has by making false representations about relief aid. The wells fargo revelations follow jp morgans finding that more than 500 staff also tapped the aid program, dozens of them improperly. Boris johnson has told the e. U. Leaders he is disappointed at the lack of progress and the brexit talks, adding he will decide later this week if it is worth pressing on. Thursday, it is johnsons selfimposed deadline for an accord but the two sides remain far apart. Au. Leaders are to start meeting on thursday as well and johnson says he will review the u. K. Position after that. Thailand has declared a state of emergency in the capital bank as protests against the government continue. Demonstrators gathered on a main avenue as the king returned home from germany although they did not top his motorcade. Protesters wants new elections, constitutional reform, and curbs on the traditional powers of the king. They insist they do not want to bring down the monarchy. Malaysia faces yet more political upheaval. The Largest Party threatening to pull out unless it is given better terms. The National Organization holds about one third of the seats in the Prime Ministers government. It would unify the largest malay political groups and those are your first word headlines. Shery still ahead, european leaders are tightening restrictions in the face of a resurgent virus. More details on that, next. Plus, new zealand prepares to vote and polls suggest the labour party could clinch a rare outright majority. We will assess the chances of that, next. This is bloomberg. Paul european leaders are intensifying efforts to stem a resurgence in virus cases. Steep risebattling a in infections less than three weeks out from election day. Bloomberg Health Care Reporter Michelle Cortez is tracking the developments. Michelle, lets start in europe. Winter is approaching. Case numbers are spiking. How serious is this situation getting . To bele it is getting pretty bad in europe, and its looking like its only going to continue to get worse. We are starting to see shutdowns and restrictions happening across different parts of europe. Originally, they were very targeted. We were seeing things in berlin and liverpool. People are starting to get resistance to these measures and as people resist and continue to gather, the virus will continue to spread. We continue to see the virus spreading in the United States as well. We heard from the fda commissioner saying that the process of the trials of vaccines and treatments should not be politicized. What is the latest on the virus front here in the United States . Michelle 46 states in the u. S. Are having elevated infection rates yawn last week and every week, they have been going up for the past several weeks. This is something that is also going to get only more difficult in europe and in the United States, everywhere in the northern hemisphere. You have to remember that as it is getting colder out, this is a respiratory virus. It spreads through the air. Taking humidity out of the air emitted he allows it to spread more rapidly. The commissioner said nothing is political about getting vaccines onto the market. The hiccups we are seeing lately are to be expected. They are going to absolutely make sure they have windows down and are only letting things on the market that are actually going to help them get through this virus more successfully. Shery in the meantime, President Trump recovering from covid19, talking about potentially him having immunity to the virus as an advantage against his rival, joe biden. This idea of herd immunity, how widely supported is it here in the United States . Becoming an unbelievably controversial topic. There are Infectious Disease specialists who have a proposal that we should not be locking down things as tightly for a number of people. Those who are less likely to get very sick from the virus, and if we can get that group herd its less likely it will continue to spread and infect others. Its a very contentious point of view and theres a whole host of. Ther experts these are very impressive people with excellent credentials on both sides of the argument. It speaks to the idea that we do not exactly know how this would play out. It,he others out of epidemiologists and doctors are saying we could get to herd immunity but even if you are , thatg about a rate of 1 is tens of millions of people, even when you are looking at the younger population. And that just does not work. Shery Michelle Cortez, r bloomberg Health Care Reporter. Wereovid19 vaccine trials suspended this week with Johnson Johnson and eli lilly both halting their Clinical Trials over safety concerns, together with astrazeneca, which stopped its vaccine trials in early september. That makes three drugmakers that have had theresa stand that have had to suspend testing. We asked what to make of the vaccine trial halt. It is a good thing we are seeing the process play out the way we want it to, the way it is written on paper that it should. I dont think we would want to get to the end of this process and have a series of therapeutics and vaccines with no adverse events because it means our threshold for what those adverse events are is not strong enough. What we are saying is the process playing out the way it should to ensure that when we get to the end, we know that we have a safe and effective product that we can distribute to americans. What is the communication needed around that . You were talking to me in the havekroom saying we never really followed the trials so closely. Who is the best person to communicate this to the general public . Laura that is where a lot of the work has to happen. The public is not used to hearing all the ins and outs of this process and every single adverse event being reported in National News and making primetime National News. Ensuring that we are working with the Community Members who are going to be taking the andine, taking the products working with communication groups who really understand how you talk about risk, how you talk about the process, working with people who have spent their whole careers on the best messaging and the best communications that achieve for this is absolutely critical. Is the virus less deadly than it was three or four months ago . Laura i dont think i am the right person to speak to that. I think theres plenty of virologists who have been doing a lot of work on that piece but i think we are Getting Better at taking care of patients who have been infected with the virus, so perhaps outcomes are looking better. I dont think we have seen a lot of mutation in this virus to warrant saying that it is different or less deadly. System, especially a healthcare system, have gotten better at ensuring that when people get infected with the virus, they get the best care. We have new strategies for their care, new therapeutics coming online, and getting them out of the hospital and safely home. Francine going back to the vaccine and some of these trials being halted, is there a feeling that actually, political pressure is overwhelming some of the scientific rigor that is needed . Laura we were all feeling that way a few months ago and into last month, and the companies actually stepped up and said we will not cut corners on the scientific rigor. I think that there is a bit of worry that the emergency use authorization mechanism, which allows it to move products faster to the public, may have lowered the threshold for a companys ability to obtain that classification, and that may reduce the likelihood of people in Clinical Trials for these therapeutics and vaccines. That is the case we have to watch, making sure we do not overuse the authorization mechanism and making sure we can really complete all these Clinical Trials we are going through so that when we get to the other side, we have really strong therapeutics. We have really strong vaccines at the public is willing to take and use. Is being donemuch to really understand how we distribute the vaccine once we have the formula . Laura there is a lot of work in that space right now and theres people who have spent their whole careers studying the most theopriate approach to scarce resource allocation mechanism, so targeting frontline responders, targeting the most vulnerable of our populations. There is agencies who are really focused on this question. I think we have to pay really close attention to it so not only are we going to prioritize people who most need it, but those also might be the people most at risk, and some of them are absolutely critical to the response so we dont want to put anyone at higher risk than they absolutely have to be and we want to make sure that the vaccine strategies for distribution protect the most in the shortest amount of time. Paul that was laura sauer, assistant professor of emergency medicine at Johns Hopkins university, bloombergs school of Public Health supported by michael r. Bloomberg, founder of bloomberg lp and bloomberg philanthropys. Coming up next, the Agency Behind k pop sensation bts is making its trading debut in seoul later. We will discuss the prospects for big Hit Entertainment plus the broader ipo landscape. This is bloomberg. Paul a quick check of the latest business flash headlines. Tesla is beefing up its pr and Government Relations teams in china as the worlds biggest car market becomes an even more important source of income. It is recruiting in major cities as well as smaller hubs such as outside beijing and the capital of hainan island. That is in contrast to teslas approach in the u. S. , where its Committee Case and steam has been largely disbanded. Rivals both hit records in new york thanks to a vote of confidence. Jp morgan expects a new Energy Demands to accelerate in china tour 20 to 20 of the market while citi points to a strong order backlog. Chinese car data show whole sales of new Energy Vehicles 140 thousando units. Bmw has halted deliveries of several hybrid models over fears that batteries could overheat and catch fire. It affects more than 30,000 vehicles in the United States and europe including the x series of suvs, its range of sedans, and many others. Problems relate to ford components from the supplier that bmw did not identify. Shery. Shery lets turn to wells fargo because it has fired more than 100 employees for improperly taking Coronavirus Relief funds. Thats the same program for which jp morgan dismissed workers months ago. The finance reporter joins us from new york. Really, more problems for wells fargo here. This is an interesting one. The Economic Injury Disaster Loan Program was expanded as part of the Government Stimulus Program back earlier this year as the government rushed to provide help for companies that were hurting when the coronavirus hit the u. S. Economy. Unlike the ppp program, where banks facilitated the loans, this money came directly from the fda. Later in july, u. S. Banks were urged to look out for suspicious deposits from the program. In doing so, wells found improper activities from its own employees in regards to the program. Paul the bad news did not end there for wells fargo. It was a bit of a mixed bag from the banks today, wasnt it . Hannah thats a good question. The thing with wells fargo, which is different from the rest of the banks, wells fargo is still under a Federal Reserve in postasset cap, which limits the growth of their Balance Sheet to the level at the end of 2017. Now, rates are so low and they, unlike other banks, cannot really make up for that with increased volume, so that is why their guidance looks a little bit different on the Net Interest Income side than some of their peers. Today was an interesting earnings day. Bank of america, wells fargo, and goldman sachs. This quarter has proven to be kind of a sweet spot for these things because they set aside so much in the first half of the that numberns and for the Third Quarter came in lower than expected across the board so they basically decided we have enough set aside, but the losses have not happened yet, so you get this weird back to normal quarter. Paul finance reporter Hannah Levitt in new york. Thanks for joining us. The wells fargo cfo told bloomberg he now expects his banksys higher than expected remediation charges to be a thing of the past. Those two items in particular were higher than most people would have estimated. Restructuring charges will come when they come. They are a little bit harder to forecast, but they generally exist because you are taking expenses down on the other side. As we said on our call earlier today, given what we know today, there is an expectation that on the customer remediation front, that we are through it. And that should not be part of the expense story Going Forward. There is a big commitment at wells fargo to bring structural expenses down over the course of the next couple of years through business supplication and product supplication business simplification and products implication. Product simplification. There are a lot of concerns about the economy and about how healthy that economy will be, particularly for consumer banks. Im curious, as you were sort of mapping things out here heading into this earnings season here, do you get any sense here that economic environment is going to be supportive of the current plan wells fargo has in place . John what you are seeing right now is a real improvement in a lot of areas over q2 of this year. We dont know what the path of covid is going to be and whether the economy is going to be more open or more closed over the course of the next couple of quarters, but we are seeing Consumer Spending picking up. We see it through debit cards, credit cards, lots more payments coming through. We see the Mortgage Market being wide open, people refinancing, purchase activity as people are in some cases moving from cities to suburbs, in part because of what has happened with the virus. Activity going on in this period time. Things are better. Credit looks better today than we thought it would a quarter ago. I think you mentioned that provisions have been down below analyst expectations. Was 29 basis points in the quarter which mirrors the best of times. We are not out of the woods because there is still uncertainty in terms of the path of where things can go, it does feel a lot better than it did. Feeling better meaning the worst is find us in terms of delinquencies on loans, mortgages, even without a stimulus bill . John both in the cares act and offered by banks, there are referral programs that allow their to take a pass on mortgage payment, auto payment, credit card payment. We see the utilization come way down, down to 5 of our consumer loans out ending and the people who have come out of deferral by and large remain encouraged above 90 . Stimulus,s no more whether that runs its course, when these programs are over, we will begin to see who rolls into delinquency. Therell be some ambiguity when that happens and the worst of it in terms of chargeoffs probably happens at some point in the second or Third Quarter of next year for both consumers and businesses. Shrewsberry speaking to caroline hyde. Up next, the worlds richest countries are under attack for not doing enough to help the poorest. Pandemic isgns the entrenching poverty. Details ahead. This is bloomberg. Shery a mixed picture in early trading in asia. Lets turn to sophie in hong kong for the markets. Sophie the aussie market, we are seeing shares at. 5 percent with miners providing a boost. Bhp rising 3 . Financial stocks also gaining ground. Bonds are rallying. The aussie dollar is under pressure. This on governor lows comments that the central bank is considering what options they have to provide support to the economy. You have the 10 year yield falling by seven basis points this morning. Over in japan, keeping an eye on what is going on with telcos on a report that the ceo is considering docomos mobile fees. You have futures opening to the downside. A quick snapshot of what else to watch in asia. s big debut coming from bts agency. Big Hit Entertainment expecting a pop at the open and if shares do jump to the daily limit, that could see a rise of 351,000 won. We have this payout drought. We have Companies Offering dividends for the next three years to offset uncertainties around the spinoff of its battery unit which is pending shareholder approval on october 30 and keeping an eye on do to report its thirdquarter results. We will be watching for any hints for the delayed release of apples iphones. The chart on the terminal, we have seen a pickup in earnings upgrades from analysts for the region, especially for attack so this will be a reality check to see whether the hot sector will provide Growth Prospects required given the pickup in economic activity. Paul thanks. The International Monetary fund is urging governments to borrow now and worry about the debt later. Policybal economics and editor, Kathleen Hays, is here with a recap. Driven policyemic on debt and deficits is rather different from what we would have heard a year ago. What is driving this . Kathleen for years, the imf has warned every nation, rich or poor, about taking on too much debt. In a pandemic, at a time when Government Spending is the only thing that can be seen as putting a floor under this and rescuing the richest as well as the poorest, this is the message. In their study put out today, one of the most detailed, global Government Debt will make unprecedented dump this year. Jump thisdented year. She said the nearterm priority is to avoid premature withdrawal of support. Lets listen. Up. Ebt levels are going for now, the biggest worry is we do not do enough to support the economy until we have a durable exit from the health crisis. This,en of course, in she is echoing she is in lockstep with central bankers around the world. President entral Bank Christine Lagarde speaking of the imf was speaking at an online panel a couple of days ago, and she said her biggest concern right now is phasing out fiscal aid to quickly. Estimates injections of stimulus are up to 12 trillion. If you look at the amount around the world, the Global Public debt is now on track to pass 100 of global gdp for the First Time Ever by 2022. Jp morgan estimated recently that the fiscal rescue packages added 3. 7 Percentage Points to total Global Growth in 2020. We were just talking about this yesterday. The imf is looking for growth to contract about 4. 5 this year so you can imagine that shows you without that help how much weaker growth would be. Imf is saying the singing from the same songbook in chorus with jay powell, christine lagarde, and very many others. G20 represents the worlds richest nations and yet they did not come through with that extension for the poorest countries. What happened . The g20 kathleen nations could not all get on board. This program of suspending debt payments started back in april. The first step was to extend it to the end of this year and the world bank and others have been hoping that it could be extended until the end of next year. Extend itly agreed to to the middle of next year. They cited a lack of progress in extending the plan to involve private creditors or that was another story this week. The head of the world bank said we need to see the hedge funds. We need to see china getting in on this, too. They are really pushing this as well. Carmen reinhart, the chief economist of the world bank, also urging the parties involved to hope for the best and prepare for the worst. She is getting worried about defaults. Hery Kathleen Hays in fact, tomorrow, kathleen speaks exclusively to the world 7 10. Hief economist at new zealands Election Campaign has entered the final 40 eight hours. Can labor earn enough support to govern alone . We will discuss with claire robinson. This is bloomberg. Shery this is daybreak asia. Lets get a check of the first word headlines. Europe is becoming the latest covid19 focus with new cases rising in several countries pay france is imposing curfews in paris and other major cities. There is a partial lockdown in the netherlands. Italy and portugal reported record numbers. The u. K. Is entering a socalled tier three status with targeted regional curbs. Angela merkel says the country cannot afford a second wave. U. S. Stocks fell on the concerns of stimulus a stimulus deal will not be passed in washington before the election. Stephen mnuchin pointed to political reality and said agreement before november 3 would be difficult. Withoke after talks Speaker Nancy Pelosi and agreed democrats may be holding back in hopes of driving through their own bill. Been on a spending spree in japan, buying a record amount of bonds over the past few months. Buyers picked up 21 billion dollars of low yielding debt, spurring talk that beijing is diversifying its reserves. The purchases from june to august are a record in local currency terms. Based on data from the Japanese Ministry of finance going back to 2005. China went on a similar splurge for years ago. Diamond exporter says the collapse in demand from the coronavirus is far worse than in the financial crisis a decade ago. Aboutpolishes and ships 90 of rough diamonds and sees sales down as much as a quarter in the year through march. Last year, sales were worth almost 19 billion. Such a fall would push exports to their lowest, going back to 2009. And those are your first word headlines. New zealand is prepared to go to the polls. Stocks are surging to record highs in the Property Market is booming. That is a far cry from three years ago where investors were spooked by the prospect of the labour party taking power. For some analysis on the campaign, we are joined by claire robinson. The key difference between then and now was the presence of Winston Peters, whose new Zealand First party did anoint him into power. He looks like he is gone this time and it could be a laborgreens coalition or labor on its own. Are we likely to see a lurch to the left on saturday . Claire interestingly, in new zealand, theres not a great deal of difference between left and right in our Political Parties so we never really lurch to the left when we change our governments towards labor. But its definitely looking like it will be the labour party that wins the majority of the party vote, and i think that the greens will come on board. I dont think labor will give enough to vote to be able to govern alone. They will need the greens to support them in some sort of coalition or support supply agreement. Its looking like a labor green government. Of keyhere were a couple differences on policy, particularly around taxation. Labor was interested in the Capital Gains tax and shelved that. If there is no break on power, could we see Capital Gains tax return or potentially the wealth tax that the greens are proposing . Claire thats an interesting question. After the last election, labor said no government would introduce the Capital Gains tax. That is currently off the table while xi is still the leader. She is still the leader. If they come to their Coalition Negotiations that will be on the table, and labor is also promising that they will raise the top tax rate on incomes over 180 thousand so there will be some form of tax rise or rises. Also have two referendums being held at the same time with the election. What are you watching on that front . Claire very interesting. Not a lot of opinion polling thats really indicating which way things are going to go. Legalizationis opinionsm referendum, seem to have shifted. Theres a lot more conservatism in the country than i think people expected at the very beginning of the campaign. Youthlot will depend on voter turnout. Its young people that are mostly in favor of cannabis legislation. We have yet to see what happens there. In terms of the referendum, i think that there will be a change there. Theres a lot of older people who do support such a referendum, and i think that that is likely to go through. Shery Foreign Policy seems to have been largely absent from the campaign debate. At a time when we are seeing labor australia having such difficult issues with china as well, what are you expecting on that front when it comes to new zealand and china relations, which until now has been surprisingly quiet . Claire its been incredibly quiet. Foreign policy does not tend to be one of those issues that really engages new zealand voters at election time, but this one has been more quiet than normal. I think its because the country at large has been very focused on covid, covid response, covid recovery, and ways of getting people back to work. Are just with china completely off the table in terms of the interest. I think that with the government, there will be possibly a little bit more tension in the relationship with china Going Forward. Theytend to stand have a stronger position on human rights than the government has. At the same time, we are a trading country. We do depend on exports in china , which is one of our major markets. New zealands relationship with china will still be very solid but may be not quite as long as it may have been. Covid response globally was one of the best but it did come at a heavy economic price. New zealands economy contracting 12 in the second quarter, worse than what australia suffered. Voters appear to be passed that and that is despite the National Party typically pitching itself as the better economic manager. Why is the opposition not getting any cut through this time . Claire i think survival has really become a major focus for New Zealanders. Thathey do get the sense they have a huge sense of trust in the government for seeing us through the worst parts of the two waves of the pandemic so most New Zealanders today can go about their business without worrying about social distancing, without worrying about whether we are going to catch the virus tomorrow. That is a strong cultural underpinning to the economy. A lot of people have lost their jobs but at the same time, a lot of people are still working. Wealthare still rising, is still accumulating. This is a government that is quite looked after. Poor people, people who are most affected throughout covid, so that there are People Living on the streets, for example, have been housed in motels. They have been taken off the streets, looked after. I dont get the feeling that within the electric business that you usually feel in times of economic crisis that deserve there is a huge amount of trust that New Zealanders have in the way that this government has managed covid. Trust has not extended to Winston Peters. He is the leader of the new Zealand First party. Be is believed he will out. He is 78. Can anyone else capture that ground as effectively as Winston Peters has over the past 30 years . Claire thats really interesting, isnt it . The position of new Zealand First over the last 20 years has been that of the recipient of the protest vote. It has been the place where centerright, centerleft voters who have not been entirely happy with the major Political Parties, have felt safe giving their protest votes to. Doneealand first has not very well in the elections after it has been part of a Coalition Government and that is because half of its votes tend to come from the other side. They dont necessarily trust Winston Peters with their vote. Around, he has been around for a while. He is still campaigning on being the party that is the honest broker, the Insurance Party in terms of being in the middle. I think new zealand voters are looking for something more this time. Greens, looking at the at the parties that are predicting Something Interesting for the future, and its those two parties that are going to be different from what has traditionally been the protest vote. Shery relatively speaking, covid19 having ravaged the rest of the world, new zealand seems to be doing pretty well, whether it is on the pandemic crime, stock markets, Property Markets really rallying right now. What will be the next challenge for the Prime Minister other than the pandemic and the possible resurgence of the virus . Very goodat is a question. I am not sure because i think that new zealand feels that even though we are luckier than most countries in the world in terms of how we can go about our daily lives, that this virus has not gone away, that it is still overseas. We still got lots of people arriving on the borders from other countries who are still carrying the virus, and that it is only a matter of time before it potentially comes back into the country. I think people are very focused on the shortterm. House prices, the ability of young people to buy houses, is still a really major question for the government, and its a really difficult one because although rising house prices makes the countrys Balance Sheet look a lot better, today, it is very unusual in new zealand, but its very hard to find a house for under 1 million in one of our major cities, and New Zealanders always have this thing about 1 million. It sounds like a lot of money to them. There is this incredible sense fromople being excluded the economy because they cannot buy houses. I think that that will be something the government has to really manage Going Forward. Claire, quickly, i want to finish on a note some of our viewers might be familiar with and that is chris who quit as the ceo. He is almost certain to win it for the National Party. Considering national is likely to face defeat on saturday, are we looking at a new leader and a potentially future Prime Minister . Claire he likes to build up potential candidates like that because of their success in the corporate world, especially when it comes to the National Party, but the National Party doesnt just it does expect them to do hard grasping forward. It took him two years before he became the leader of the National Party. I think if christopher gets into the national caucus, he will not become leader straightaway. Inres a few other people the line before him, but if another status for three years in opposition and national goes through a few leaders as it is looking for the person with the he might be able to enter the fray may be in three or four years. Claire robinson, thank you so much for joining us today. We count down to the current election on saturday. Breaking news that Virgin Australias ceo is expected to resign within hours. This is not long after the new owners of Virgin Australia said that they were behind paul and his team. We are expecting a formal statement on his departure later today, and there is rumors circulating that his replacement could be former jet star boss more to come on daybreak asia. This is bloomberg. Paul quick check of the latest business flash headlines. Heavily indebted bella for evergrande is under more pressure with its largest investor, leaning towards demanding 3. 5 billion that it sunk into the company. Evergrande fails to succeed with a backdoor listing in china by the end of january. Sources say is keen to take its money back. The chinese owner of the tiktok video app is expanding in singapore and plans to make the city state the for the rest of asia. Sources say is taking 5. 5 thousand square meters over three floors in the Central Business district. Endtoendling out encryption for user calls, seeking to sidestep safety concerns and maintain its growth. The feature will be generally available to both free and paid users until next week. Shery. Shery lets turn to south korea. Big Hit Entertainment, the , text to thed bts market stage in a few minutes as shares start trading in seoul. But with a top of range valuation, will they be able to live up to the hype . Be more will need to than a one hit wonder. Right to have you on this coming at a time when bts, the group itself, is facing anger from tizens and state media. How much is at stake here . Its an incredible phenomenon. Nobody will debate that bts is a lucrative musical phenomenon. Its probably after the kapok universe it is thanks to social media, the first band to resonate with western audiences, and the numbers are incredible. The popularity is something close to elton john and every time they treat something, the engagement is like an average of 400,000 retweets. What we are questioning is whether big hit, the Company Behind it, is really worth what people are valuing it at today. Shery paul is that the key riskier, a question overvaluation risk here, a question over valuation . Clara 90 of sales were related to bts. Even though they are an incredible phenomenon that brings billions of dollars, in terms of tourism, in korea, they estimate it will be 3. 5 billion to 5 billion of tourism brought by bts, bts related tourism. That is incredible. And the sales around it. If 90 of your sales are coming from this one band, what is the risk . How fast can you diversify . How fast can you transform that success to your other idols . The chinese episode earlier this week is a good example of just how risky it can be to have all your eggs in one musical basket. Shery bts Group Members still have to go to the military, right . Clara thats right. All korean males between 18 to 28 have to do military service and that is coming up for the the least young of the bts band members. That ultimately will be a twoyear hiatus which is problematic in the fickle world of kapok. They may be able to get through that. They may be able to manage with a sixmember band rather than a sevenmember band. The bigger issue is between now and the end of next year, when that military Service Comes up, can they diversify . Paul Bloomberg Opinion columnist clara, thanks for joining us. Still to come on daybreak asia , more key chinese Economic Data due later this morning. Vanguards joins to preview the latest inflation prints and the Market Outlook as well. He is bullish on asian tech. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Shery welcome to daybreak asia. From bloombergs World Headquarters in new york, i am shery ahn. Paul and i am paul allen in sydney. Asias markets just opened for trade. Asian stocks look set to extend u. S. Declines as stimulus chances sink again. Stephen mnuchin appoints to political reality, saying a deal before november 3 will be difficult. One fellow says he is weighing how much it would help the economy and whether it would help posted in jobs. Employment numbers are due at this hour. And the Company Behind the caity sensation bts hopes to be a big hit on the stock exchange. Lets get Market Action with sophie kamaruddin. Sophie we have the same set of things at play when it comes to politics. With the earnings season wrapping up in asia, a report from japan at the start of cash trade, nikkei 225 and the topics are under pressure. Still in the read for 2020. There are rallying ecommerce stocks. Checking in on trade in australia, stocks are higher. Miners in sydney climbing. The aussie dollar is under pressure with yields. Rba governor signaling lower for longer rates. The. Stocks are under pressure the election this weekend of the kiwi stocks are under pressure with the election this weekend. Won justhe korean holding study, below 11. 47 against the greenback. Authorities say they are monitoring volatility. There is speculation around south koreas participation in the u. S. Clean network campaign. Embrace not for this chip company. And bright spot for this chip company. Yields, hound for sovereigns are capping the debt markets. This weeks china dollar offering do solid demand. Big Hit Entertainment come the kpop agency is doing a listing. The price is up 30 and we could see it moved to vendor 51,001 for the stock. A dynamite start for this stock. Shery what a dynamic debut. Look at the korean stock exchange, we are seeing the founder not turned billionaire receiving a certificate from the chairman. This as they are having a very a riseful trading debut, of 160 for the stock, now trading at 350,000 won. This is a huge achievement given that the kospi is losing ground at the moment. As you can see, there is celebration at the korea stock exchange, big Hit Entertainment achieving that milestone despite the fact that there has been some concern about the sustainability of this company. The grouparily on bts itself, the groups huge globally come that it is about the company, big Hit Entertainment. Bts accounts for almost 90 of the sales. Lots of people say the Company Needs to diversify. They have been investing in talent and trying to diversify. About the concerns are there. You have the ipo valuation of bond and 4 billion. You are seeing the trading debut with a more than doubling of the share price of the open. Talking about rallies. Chinese stocks also close to a fiveyear high. Our next guest is betting on china and those benefiting from its growth. Asianbenzimara is head of equities strategist at scioscia division a row. One of the country is very dependent on trade with china in south korea, right now losing a little ground. We have seen a very active year for south korean stocks. Frank yes. It has been quite an interesting market. It has been an economy which has the whole activity left impacted by the pandemic, one we could not serve in the recent. Onths especially on the earnings side, a broader recovery beyond the technology sector. Comforting if you look the other six or nine months, where kind meanry earning in the markets. That is a market we continue to like. Shery you mentioned technology in asia area one of the reasons analysts really like not only south korea markets but also east asia in general, and china, for example, tech has dominated and been great during the pandemic. If you look at the gtv chart, on the bloomberg for our viewers, chinese tech stocks are performed the nasdaq messier. If we are seeing these trend in you compliment this popular trade . Frank that would be a compliment. Looking at the asia technology, if you take it in the broad term, it is just massive. We are talking Something Like 2. 5 trillion in terms of size. You have some risk. The risk of reversal of momentum is here. Risk, buthe political looking at the fundamentals, whether it is in terms of valuation or earnings or in , wes of the quality find it quite interesting alternative to technology, which, as you mentioned, has its own set of risk, including regulatory risk. Paul as you look to diversify out of u. S. Tech, i know that you are seeing some appeal out of asian emerging markets as well. Which particular markets do you think have some potential . Moment, the northsouth divide, or east asia versus the rest of asia is still something that we are areidering, and we overweight on china in south korea. We do see some more attractive valuations emerging in some asean countries. Indonesia, in thailand. I think at the moment i think it early to cometle back to this market. We need to see some reactivation of growth and see some catalyst before getting more aggressive on the south part of asia. I am just wondering if the news today from stephen mnuchin, the u. S. Treasury secretary, saying he doesnt see any meaningful stimulus package before the election on november 3, does that have any impact on your outlook at all . Thek we know that we have which hasthe markets, been number one, the economic commission, number two, the fiscal package, 3, the Monetary Policy. On there uncertain timing of the next fiscal stimulus in the u. S. This is placing some uncertainty on the sure plan, but it snt mean that will be any it doesnt mean that there will not be any fiscal stimulus package. The views we talk on the duration of the market for the next quarter, until march or april of 2021, we are concentrating on the risky assets in general. It is not something being questioned by the delay in the stimulus package in the u. S. Paula Frank Benzimara come head strategy atity societe generale, thank you for joining us today. Lets get you more on the big hit trading day boom in south korea. The bts agency is up 151 now. Big hit is proving to be a big hit. The kospi index more broadly is flat but big Hit Entertainment is up 150 . There is concern, however, that perhaps they only have one band. It will be interesting to see how durable this rally is. But for now, a very strong ipo. Lets get a check of the first word headlines. Europe is rapidly becoming the next covid19 focus with cases writing is a this case is rising in several countries. There is a partial lockdown in the netherlands. Italy and portugal recorded record numbers. The u. K. Is entering a socalled tier three stage was targeted lockdowns. And Angela Merkel says the country cannot afford a second wave. The bank of australia chief says he is working through how much further easing will help the economy and the potential effect on Financial Stability of such a move. He told a conference in sydney that the bank has been considering what more he can what more it can do to support jobs and incomes. 10 year yields are higher than almost anywhere in the world. Supreme Court Nominee Amy Coney Barrett faced further questions on capitol hill, but with democrats on most powerless to stop her confirmation, they about President Trump. She was asked if he could pardon himself in necessary. Barrett continued to avoid saying how she would vote in potential cases. Facebook and twitter are taking action over india post article about joe biden over a New York Post article by joe biden. An article says it introduce an politician to a executive. Hief twitter users see a message saying best this link may be unsafe. Those are your first word headlines. Shery still ahead, more Economic Data is due in the coming hours. Vanguards wang qian previews the trends. Plus, the g20 extends that relief for the world tourists but some worn it is not enough. We hear from the managing director. This is bloomberg. Paul big hit indeed. The Company Behind cape phenomenon bts this kpop phenomenon does the Company Behind kpop phenomenon data li. Expecting were something more impressive on the trading debut here. Did this surpass expectations, . Nd is it sustainable shares more than doubled during its trading debut, and it at 380,000 won. 150 from the offer price. That would make the market cap at about one trillion won. Or 10 billion. Theowner would become richest person in south korea. To keep it sustainable, he is likely to use the money to business,. Shery the timing of this debut seems interesting. We are still in the middle of a pandemic and economic challenges are still abounding. So why now . I think the timing is better than ever. It drew aboutipo, 15 billion from retail and institutional investors. Since of the owner first acknowledged he was considering an ipo a year ago, bts has become the biggest pop group in the world. In a way no one has ever done before. So it has gotten bigger and extended businesses. So although the kpop company [indiscernible] warned that it cannot the impact in the pandemic any a over there last weekend, bts held an online concert and it drew about one million paid viewers. Ticket sales roughly about 6500 won. Paul what risks to investors need toour be aware of your. The biggest risk would be the the agencys reliance on bts. It is about 90 . The oldest singer is 27 now. He has only one year left before the deadline that he should invest in the army. Some lawmakers are itchin pitcha bill to delay the deadline, arguing that bts has made huge contributions to culture. It is also facing political risks. Ing the award ceremony, [indiscernible] after it ahead of the ipo. Shery we saw the chinese anger for out against bts. Lets talk about big Hit Entertainment and their performance. Likedoes business look right now and what is the potential going into the rest of the year . Let us know if they have other acts in play. They have been trying to develop talent, right . Yeah. For bts, it is the largest source of income. They have plans to tour this year. Theyve had bill called and concerts so far. Had two online concerts this year. The new push in entertainment will be working in this pandemic. To diversifyng their revenue sources. Early this year, they bought a new kpop agency. They are also sponsoring kpop groups and also cooperating to , and a newboy band girl group as well. Shery asia tech reporter in the latest on bts. 20 more to come on daybreak asia. This is bloomberg. Asia. This is bloomberg. Paul singapore will not see the return of mass air travel for youth two years, according to the citys transport minister. He says only the wide availability of a vaccine will help the country open its borders and allow for free travel. He began by discussing the delicate and its impact between containing the virus and keeping functioning. You asked me that question in march, i think it is a tradeoff, either you close your the economicuffer consequences, or you open up and then you get if a trade with the virus and used to have economic consequences. The tradeoff was very stark that the time for you because we dont know much about the virus. We know it is very infectious. Very importantly, dont have test facilities. At the time in march, you could administereople or 2000 tests per day, mostly in hospitals for acute cases. Today the tradeoff is still there, but not as stark as before. The big difference is, number one, we have kept the epidemic under control. We kept it under control. For a long time, we had zero cases, community as well as foreign workers, zero. That is a big milestone. That is one. Secondly, tests are no longer such a big constraint anymore. We are doing maybe 30,000 tests per day and going up to 40,000 by november and probably up further after that. I think a good proportion can be dedicated to their produce ipod usage. Lab. Icated test it helps us strike a balance between travel and epidemic control. What are the prospects for Singapore Airlines . When we speak to experts, a say the real pain has yet to come. What are the prospects for the carrier . About 1. 5 ow serving of the previous passenger volume. So it is a dire situation. Domestichave a big market. Is sia is veryl much related to the airport stage. We have to gradually open up the borders and establish the key links, the key destinations that are stilld commercially viable. By keeping the links open, keeping the flights going, as some passengers continue to travel, we this we cant wait around for a vaccine to happen. That when a vaccine becomes widely available year or a year and a half from now, if passengers are flying and we are keeping in touch with our advisors, then the air hub can reopen again. Would you have to rein in plans for terminal five . The plans were huge, there was so much hope pinned on terminal five. Would you have to downsize perhaps . We have to. The assumptions when we went into terminal five have changed. We would be blind not to look at the entire situation. We have suspended the development for the next two years. Would say i dont have a prediction or crystal ball to say what will happen with terminal five and what will happen to global aviation. Early. It is too but two years will give us time to assess the situation and we will have to decide what to do with terminal five at the end of the period. Realistically, when do you see the mass travel market finally going ahead . , anden there is a vaccine the vaccine is widely available around the world and people then gain confidence to travel again and visit other countries, then will have aviation back on its feet, almost fully on its feet again. How long will that take . I cant make a guess. I would say minimally a couple of years. Shery here is a quick check of the latest business flash headlines. Has wonways Company Almost 4 billion in loans. It will take part including the government backed Republic Bank of japan. United fell lower after an unexpected loss in the Third Quarter as ticket sales plummeted. However, the airline says it has 19 billion. It lowered its daily expenditures to about half what it was in the june period. Tesla is beefing up its pr and government relation teams in china recording in smaller cities and major cities. Plenty more to come. This is bloomberg. We are just getting australian job numbers for the month of september crossing the bloomberg. It is a beat, the Unemployment Rate coming in at 6. 9 . The expectation was it would hit 7 . 25,500 jobs lost during the period. 9000 were parttime. The partition rate Participation Rate holding steady. The first round appeared to be positive, since this hits the period when the state of victoria was under a fairly Strict Lockdown to get ahead of the coronavirus outbreak. We have the aussie Dollar Holding Steady at 71. 39. Lets get context on those numbers with Kathleen Hays. Had positivealia news on the jobs front. How will that change the picture . We will see if that does change it. The surprise fact was on the betterthanexpected side will add to the sense, in the speech he gave a couple hiss ago, and it has been in fact, ittly that is been his stance recently that he is more inclined to wait and see what happens. Unemployment looking good. All of these things are pointing at a good direction. The more the virus starts to recede, that is what every economist says, tell me where the virus goes, i can tell you where my labor and economic environment goes. Reinforces the sense the rba has. If they would do anything, it would be easing. But for now, they want to wait and see what happens. We got some more hints from rba governor phil lowe. What were Key Takeaways . The thing markets focused on was the fact the board is assessing whether buying longer dated bonds would help get things going more. Presumably if you buy longerterm bonds you will bring those yields down further and that is the sort of thing that would filter through to the economy. Australias 10 year yields are higher than almost everywhere in the world and they are trying to understand if that is because after they were buying longer dated bonds in march they stopped. It gives you the sense they are ready to do what they need to do, they are watching the virus. In victoriaround could happen quicker, may be that is another thing that reinforces the fact they will keep the key rate steady. Maybe the move in november is not so much going to be that the rate is cut, it will be more that the rba comes up with another bond buying plan. Kathleen hays. Lets get a broader check of the markets. We see in hong kong we are seeing the aussie dollar under pressure, the 10 year yield off by about eight basis points and rejigging the forecast by rbc, when they see easing from the rba, penciling in a rate cut to 10 basis points in november. Outlook. King the rba a boost. 0. 1 . X 200 up the earnings season rolls on. Asia waiting on fast retailing results in tokyo. The nikkei led lower by softbank. The kospi under pressure, seeing it lose zero point 7 , fluctuating after a two day drop. Earlier hitting the daily upper limit of 30 on the kospi. Lets check in on other movers of note. Chem risingl, lg after a threeday decline. The battery maker has not revealed the plan to pay out dividends over the next three years while 30 of apac firms for 2020. Payout annex holdings gaining ground amid reports they will secure funding from banks. And day yen share in the works. Theyising 3 even though confirmed some chinese investors have asked to defer coal purchases. Ahead of chinese inflation data, the offshore yuan hovering 1, maintaining its lead over the onshore rate, which could signal more rates for the renminbi. Indicators of recovery from china coming through from the latest credit data, showing the fastest credit growth since 2018. Paul thank you. Still to come, chinas economic recovery in preview. This is bloomberg. Shery wells fargo has fired more than 100 employees for improperly seeking coronavirus funds per the bank identified staffers who defrauded the u. S. Small Business Administration by making false representations about relief aid. The wells fargo revelations follow jp morgan binding more than 500 [indiscernible] dozens of them improperly. U. S. Stocks fell on concerns a stimulus deal will not be passed in washington before the election. Mnuchin secretary pointed to political reality and said an agreement before november 3 would be difficult. He stalled out in talks with nancy pelosi, saying democrats may be holding back in hopes of winning the senate next month. U. K. Prime minister Boris Johnson has told e. U. Leaders he is disappointed at the lack of progress in the brexit talks adding, he will decide later if it is worth pressing on. Deadline the two sides admit they are far apart. There is a two day meeting starting thursday and they will review the u. K. Position afterward. Spending been on a spree in japan, buying a record amounts of bonds in the past few months. Billion ofed up 21 low yielding debt, spurring costs and diversifying reserves. Purchases from june to august are record in local currency terms based on data from the Japanese Ministry of finance, going back to 2005. China went through a similar splurge years ago. Those are your first word headlines. Paul lets take a look at chinas recovery. We await inflation data. Expected ton is have slowed significantly in september. Says core cpi could improve modestly thanks to ongoing demand recovery. The vanguard chief economist wang qian joins us now. When youre looking at these numbers, what do you expect them to tell you about the pace and strength of chinas recovery . Wang i want to say we look at the swing of the headline number is driven a lot of times by food prices, especially pork prices in china. A lot of the decline headline is because of the lower pork price inflation, thanks to better supply. And also a high baseline here. Focus should be on the core cpi, after food price and energy. It is very low. Almost 0. 5 . We think it will improve in september,6 thanks to the recovery in domestic demand. But, it is at such a low level, well below chinas 3 inflation target. That tells you that recovery in the domestic demand, especially on the consumer side, is not complete yet. Especially in the service sector. When you look at the golden week whiley, you see that there is discount promotion for and the average hotel price and flight tickets, the price is also much lower than last year. There is still incomplete recovery in the service sector, in the consumer sector. Mean fort does this the pboc and the past easings . Is it time to hit the pause button . Ang i would say this is uneven recovery in the economy. The recovery in china was led by manufacturing sector, production, Infrastructure Investment and real estate investment. Then there is incomplete recovery on the consumer side. If you put that altogether, you saw the overall economy is quickly normalizing toward the prepandemic level. I would say the ongoing recovery can make the pboc take a pause, in terms of an Interest Rate cut cycle. On the other hand, i think the pboc do recognize there is a risk of a second wave. Uncertainties, such as the u. S. China tension. Domestically, labor markets are vulnerable, especially for college graduates. To pboc would still want maintain a wait and see approach. Flexible, stance is datadependent and targeted. I do not think they are ready to tighten. You look at the data today about credit growth and money growth. It continues to accelerate. The is the indicator that pboc is not going to tighten any time soon. Paul the pboc is getting assistance from the government as well, legislature moving it easier to shore up the yuan. Do you see the yuan getting weaker from here, and if so, how . Think the pboc, what they did, they lower the risk of reserve for the fx forward transaction. This could send a strong signal to the market that the pboc does not want to have further currency appreciation. Hurt the export sector and effectively, tighten financial conditions. I think we could watch more what the pboc do next. They could send a signal to the market either through communication with the market, or they can adjust this factor in the daily fixing. Do, that couldoc stabilize the market temporarily. But at this moment i would say, there is strong fundamental support for the yuan. You do have favorable growth and also Interest Rate differentials. You also have this very large surplus and a lot of money coming into china. Do not say even though i see further appreciation down say they willuld probably stay on the strong side. Is Downside Risk if any, probably if the chinau. S. Tension intensifies. That would create room for the aken in the near term. Just want to get your thoughts on the bank of korea as well. It is expected to stay on hold, zero point wife 0. 5 . Rising,rus cases are are you concerned . Wang i dont think the be ok will cut Interest Rates again bok will cut Interest Rates again in the near term. Bok, there is the some similarity between bok and of the central bank in china. The recovery and the domestic economy is fuller, given those countries have relatively speaking a more effective containment of the outbreak and both are more exposed to Manufacturing Activity and tech products. The recovery of the domestic economy seems to be more solid than the rest of the world. At the same time, both Central Banks are concerned about financial risk. When you look at china, china is concerned about the overheating property sector. Same for korea, they are concerned about the household, the bubble in the property sector as well. I would say the bar for the bok to cut Interest Rates further is very high. For theg you do notice central bank in general, there is interest you shift for the central bank. They start to shift from the price tool, the Interest Rate, to what is more quantitative. Providinguying, liquidity support and credit support. I think that is probably the focus of the Monetary Policy down the road. Chiefthat was vanguard asian economist wang qian. Thank you for joining us. Tensions persist between beijing and washington even after the election. There may be key differences depending on who wins. Us the likeliest outcomes. The relationship is not going to change that much. The tensions are not going to come down significantly. The differences the way in which the chinau. S. Tensions are managed in a more systematic, multilateral way. That is the consensus now. Regarding the u. S. Economy itself, i think if president , he will continue with tax policies he has had so far. We wish to have additional stimulus package to build the economic recovery. I think if biden wins, the fiscal action will be far stronger and that it will be an increase in taxation on the wealthy and on corporate. Position anddiate that will finance an ambitious plan of Infrastructure Spending and things like basic infrastructures, the environment, education, health and those will give a boost to the United States economy in the shortterm. Place ass put in suspected to do things that contribute to medium and longterm productivity, it will impact longterm growth in the u. S. There will be differences depending on who is elected. The worst thing for the economy would be a contested election, which leads to a protracted period of uncertainty that may last a few months. That would be very detrimental for investment, consumption and growth in the u. S. Standard chartered chairman jose vinals. I check in on how bts beg your pardon. How big hits are performing in their trading debut, up 122 . It is pulling back. This is the agency that represents the boy band, bts. Surging. The kospi is broadly flat. This is bloomberg. This is bloomberg. Paul tens of thousands of protesters surrounding the Prime Ministers office in bangkok have been dispersed by police and their leaders arrested. The government cleared a state of emergency in the capital after days of demonstrations. Lets get the latest from our randy in bangkok. Tell us what happened today. Andy the government declared state of emergency for bangkok to Disperse Protesters overnight. Police arrested top leaders of the protest in an Early Morning raid. These events follow a key antigovernment protest wednesday when tens of thousands of participants broke through police lines and the march to the government house. Protesters openly defied members of the royal family i holding up three fingers, one of the symbols of the protest movement at the royal motorcade as they passed through the protest area. It is the most intense protest since the Movement Began in july. It started off as a studentled protest, but has gone into a deeper movement and they are demanding government resignation and rewriting of the constitution. These all varies very touchy subjects in thailand how does it change the political picture . Randy this state of emergency will ban the gathering of five people or more and allow for the arrest of anyone violating the rules. This will likely curb future protests in bangkok. Last night the government said legal actions would be taken against protesters who disrespected the monarchy, one of the first responses. We can feel the tension is rising. Protesters are angry at the government for quelling that movement and not listening to their demands. The risk of violence Going Forward will be something to watch out for. Paul how likely is it these protesters will get the 4 will get the reforms they are looking for . Randy it is hard to predict at this point. The protesters want change in the government and constitution for gator democracy, less power for the monarchy. Without these changes, we would likely see this protest movement escalating and intensifying in coming days, whether it be online or on the streets. The emergency may hurt the governments plan to gradually reopen. Reopen to investors and visitors this month. Paul randy in bangkok where a state of emergency has been declared over protests you are seeing. Lets get a quick check of the business flash headlines. Chinese owner of tiktok video expanding in singapore, with plans to make the city state the beachhead for the rest of asia. Sources say they are taking 5. 5 square meters over a floor in the business district. The most valued startup in the world plans to invest heavily in singapore and has already started hiring more staff. Zoom is rolling out end encryption for user polls, citing safety concerns and recent growth. The security feature will be generally available to both free and paid users from next week. Zoom has been a beneficiary of the coronavirus disruption which has forced many to millions to work, study and socialize from home. Hit records in new york, thanks to a vote of confidence on wall street, bringing new Energy Demand to accelerate in china to 20 of the market by 2025. To falling battery costs. Newas card data shows Energy Vehicles surging 68 to almost 140,000 units. Hybridted deliveries of models over fears their batteries could catch fire. It affects more than 30,000 vehicles in the u. S. And europe, including the x series suvs and the many countryman. It relates to four components from a supplier bmw failed to identify. Just before we hand over to Bloomberg Markets china open, lets look at how markets are standing right now in japan. Japan, the nikkei off by 0. 4 . The kospi off by more than 1 . A standout there is big Hit Entertainment, surging more than 100 . 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