Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

Am Kathleen Hays in york, welcome to daybreak asia, related stories this hour, monthly suggests the recovery is continuing. The Bloomberg Economic saying recovery above three point five percent. Nancy pelosi says a deadline for stainless steel well President Trump calls for a big spending package. Central bankers worn support will be needed for some time to come and new zealand stocks rise in the kiwi strengthens after the historic victory. Labor has the seats to govern alone, but she is considering a new coalition. Haidi taking a look at markets in asia we are setting up on a pretty cautious note when it comes to trading in the trading week here in asia, however we are looking ahead to Third Quarter gdp out of china with investors and traders came to see what the expectations were for this study growth were to continue. We are expecting numbers of about 5. 5 when it comes to economic expansion. This is our way of seeing into the first couple of minutes here in sydney just about two pence of 1 , we had an incremental opening i should say in lifting of restrictions in victoria and of the city of melbourne over the weekend, though theyre all calls for that to happen quicker given the decline in cases. New zealand stocks are trading softly at the moment, down by 1 10 of 1 despite a great deal of economic and Political Uncertainty being removed. Massive ing to a [indiscernible] kathleen alright heidi, thank you very much, we will get to Karina Mitchell with first word headlines. Stimulushank you, the saga drags on with nancy pelosi setting a deadline for a white house offer if President Trump wants a deal before the election. He has indicated he will go further than the 1. 8 trillion dollar package put forward by republicans despite Senate Majority leader Mitch Mcconnells block. The president says he is confident he can convince critics. On theirus remains high agenda for global Central Banks with fresh warnings about government restrictions, their fragile recovery and 30 jobs. U. K. , the euro area and were united after an online seminar hosted by the g 30 saying support is going to remain vital for some time. That governor warned warned again that japan is at risk of recession. Japans economy is likely to follow in improving trend, however, this is highly uncertain and for the downside. If growth is locked and Financial Systems become unstable, the economy could fall into a recession. The global Coronavirus Infections are approaching 40 million with the u. S. Reporting more than 50,000 new cases, the most since july. France had another record with 32,000 new infections as italy continues the tightest social restrictions since the lockdown ended. German chancellor Angela Merkel is encouraging people to stay at home as the u. K. Added 100,000 cases in just a week. The u. K. Is set to rewrite its lawbreaking brexit legislation in a move that could revive failing talks with the eu. The government says it wants a deal and that the goal door is still ajar. Michael golf told sky news he is keen to it takes two sides. Boris johnson said the talks are over and that the eu must compromise. Opec and its allies meet monday with the researching coronavirus demanding threatening demand for energy. No supply decision are expected until december. Saudi arabia and russia are already upping calls to stabilize the market with oil stuck in the low 40s and more supply from libya, the cartel is under pressure to its operatives. Opec inmates demand is at best anemic. Global news 24 hours a day on air and on Bloomberg Quicktake powered by more than 2700 journalists in more than 120 countries. I am Karina Mitchell. This is bloomberg. Beijing has passed a new law aimed at restricting sensitive exports in order to protect National Security, the law gives beijing countermeasures against the u. S. Aztec tensions rise. Lets get the deck details from Tom Mackenzie. A if youeijing see the titfortat leverage we have seen similar restrictions from washington, what are the implications for the company. Tom certainly there are implications and it follows this rule that it was implemented over the weekend. On decembermplanted 1, it follows the restrictions of the u. S. Putting on chinas biggest and most import and companies. Smic,rse huawei but also and also tencent and bytedance. China has been watching the u. S. Put in place these export controls on its own technology which has impacted Chinese Companies which rely on the supplies of some of these key components. Now they have drawn up their own export controls to try to use something as a countermeasure. Back in august they effectively stepped into those negotiations over the fate of tiktok by wrote the export of sense sensitive algorithms would be restricted as well. Also for foreign invested Companies Based here, it is more narrow the list of controls that china has set up versus the u. S. , but they could expand in the future. These will come into play on december the first, we should see what extent there and permitted. Thirdquarteras gdp out later expected to show rebound, look at the latest activity and a lot of people are wondering is the consumer finally starting to do its part in the recovery . What is the focus . Tom absolutely and that is why we are here at one of the biggest Logistic Centers in china, it is the biggest which is run by jd. Com one of the Top Ecommerce Companies in china. Beijing, the workers have started to file an and the reason were here is to get a sense of how much demand there is from chinas consumer. We saw a strong response over the golden week holiday, but you are right to say it has been the piece to the puzzle here in the economic recovery that has not kicked into full gear. The expectations are you will see expansion in retail sales for the month of september close to 2 potentially. You also see a pickup in Industrial Production and fixed asset investment. The headline number we are looking for is the gdp as you say, an increase for the Third Quarter, the estimates are 5. 5 . Making up for all of the lost ground in the first half of this year, a big reason for that we talked about retail sales being lackluster, but on the other site, exports have been strong. Haswork from home move driven that demand for Technology Products being shipped out of china, but also medical equipment as well as a virus continues to have a strong grip in places like europe and the United States. We are going to look to see whether we see something of a transition away from Infrastructure Spending which has been the other strong component of this. Exports and Infrastructure Spending and real estate, whether there is now a shift to retail sales and a shift to manufacturing investment as well an economistof suggests. If that happens, the rebound here could be on sustainable footing. Kathleen Tom Mackenzie thank you so much, joining us from south of beijing. We will be discussing chinas economic recovery more and the data coming out today in just a hours, alsors ahead a study shows china is closing in on the United States as the most powerful country influencing the asiapacific. As americas handling of the pandemic tarnishes its reputation, we discussed the latest. This is bloomberg. Kathleen china is set to show the world its economy is pushing ahead and the coronavirus recovery, the latest reading on gdp is due in a few hours. Governorate spoke about the expected growth at a Virtual Panel organized by the g 30 and that china has basically put covid19 under control. Growth formulative the first three quarters of this positive, i mean that the gdp on the year on year basis is much higher than the Second Quarter so that for the whole year this year, they predict that chinas gdp growth rate will be around 2 . Joining us is a senior economic at oxford. One of the officials speaking at the World Bank Meetings this week said talking about the fact that china being the only economy showing positive growth this year set of course, they were first to go into the virus, first to go out of the virus and reopen. They are saying it is surprising they would be leading the world, is that the proper way to look at this . Some ways yes, they have the lockdown and so gdp plummeted. We are starting to see the rebound with a fairly strong recovery ongoing in the Third Quarter. I think the policies have been quite supportive in the fact they have come out of lockdown in the government seems to be supporting the exports. Exports from china have been up. That has been a boon for the economy and has helped that recovery. They have had numerous challenges most notable being they are seeing around the world made breaks and its in its Major Trading partners. Is sayingeveryone watch the consumer closely, we know that the economy is coming back, but, if the rest of the world is going to have to lockdown again and if we look at the fact that chinas economy is very dependent on exports and manufacturing, is that the biggest risk or is the consumer just not getting over its fear of getting out and shopping enough to move things ahead . [indiscernible] we are looking for an ongoing recovery and for an improvement in gdp. There are social distancing especiallymeasures for social consumption and also employment has remained at a steady rate. Confidencengoing continuing to see the uncial on a plymouth trans pickup which you would expect. Unemployment trends pickup which you would expect. A look atif you take the implications coming out of asia and china for the u. S. Election, what are you seeing as the biggest likely result . Of tears being held back under a biden administration. I think whoever does when the u. S. Election will not change, the u. S. Will be on china. We are not looking for any rollback, but that does not mean tensions between the u. S. And china are going to by any means dissipate. Anyl though we not see terrace increase, we do not look for them to be rolled back anytime soon. It takes a while, we have seen this, it takes a while for tariffs to be reduced. There continues to be a drag on how much chinese imports exports can actually increase. In the meantime the expect resilience when it comes to the chinese recovery to propel asian economies in particular we are getting south koreas 20 day export numbers this week, do you expect that to continue to list some of these other regional data points we see . Sian it is going to provide , and south korea were not looking particularly [indiscernible] undeniably, the increase in china production will increase support, so asia through the rest of the world. Hat is real challenge there is so much focus on hong kong now, but we look at the economic focus and jobs data on the hong kong travel bubble, broadly, how do you assess the momentum of a hong kong economy and what you expect on those fronts . We are expecting a pickup in september, employment the employment rate will stay elevated at this point in time. As we go into the last quarter of the year we should see significant rebounds. That said we are still looking. Oward gdp to contract we will not be returning to precovid levels next year, and the travel bubble is quite positive. I think it is positive in the sense that it is taken away from other travel bubbles across asia. We need to put into context, the number of from both countries looks fairly small, unlikely to be significant [indiscernible] haidi i would appreciate your time with us, coming up next on daybreak asia, another deadline shift in washington, we ask if congress is anywhere close to in agreement with his latest deadlines. This is bloomberg. U. S. To most talks enter another week as the world and markets watch on, nancy pelosi now says tuesday is the deadline for an agreement before the election over the weekend, President Trump said he can convince republicans to back a socalled good deal. Lets get more in this from our news editor in washington. Im wondering, a couple of democrats criticized nancy pelosi last week for not getting some kind of deal to put in front of Mitch Mcconnell, Mitch Mcconnell says if nancy would just let a bipartisan deal to the house we can vote, is she starting to feel pressured to get something done before the election . She certainly is and as you say, whether it is the coalition problememocrats or the caucus within the house, they want to be able to go to the voters back in the home districts and say look we passed this new stainless bill. Stimulus bill. Of course the democrats passed there is month ago and theres been no action in the senate. It seemed like it would be in everybodys interest if they are running for reelection. Parties remain very far apart in terms of what washington wants, in terms of what republicans will except, in terms of where the democrats bottom line is at the moment. It is interesting because we had our two comments from President Trump this weekend, one just about an hour ago talking to reporters and one talking to a tv station in wisconsin yesterday saying he democrats but the suggested. Even though most republicans do not want to spend that much he said i can get them on board. That somewhat muddies the waters i think, we do know that pelosi and Steve Mnuchin were negotiating and what we believe was goodfaith yesterday, they talk for more than an hour and that is where this 48 hour deadline has evolved from. And thethose two sides Senate Republicans who are going billte on their own tuesday and wednesday, it is unclear what is going to happen. I think well hear more in the next day or so. You do here mnuchin and pelosi are supposed to talk again on monday. Their staff are basically talking all weekend. One final thing, not to delay, but even the dollar amount is one thing, but it is also the and democrats are determined all along to get a lot of Financial Aid to state and local governments, that has been a nonstarter for republicans. They see that as a bailout for what they described as poorly run democratic states and cities. It is hard to see how that can all be wrapped up and finalized before the election. Our Bloomberg News editor there in washington as we get another deadline for the u. S. Stimulus negotiations. In the meantime, andrew of the Johns Hopkins Public Health says mask wearing is hindering every to reduce infections just as u. S. And europe are facing a resurgence in cases. Weit is quite clear that know how to reduce cases, mask wearing is one of the critical things, social distancing is a second thing that can goes handinhand. It seems to be more of a politicized issue these days and that is turning back in terms of reduced compliance for something that we know is a rather straightforward way for us to reduce cases and keep our economies open. If you look at that week there is been, theres been several pauses and Clinical Trials for vaccines. Is that part and parcel of what was expected or is this concerning news . There is two things important with that, one is, when these trials are stopped, that is a sign they are monitoring well andadverse effects independent review boards have been looking at the data trying to assess whether these are random events that are happening. When you do studies that involve 10,00030,000 people, or whether it is something to do with this treatment itself. That is a good thing we are catching these things and they are analyzed. I think it is a reminder that as we have gone far in terms of development of vaccines, we are not there yet. Bit of studies are going to be important in terms of proving safety, proving efficacy, and then gaining the public trust so that when vaccines become available and they will be available, we know they will be a good number of people willing to take it because if a majority of the people will not take asrs covid vaccine, we are in the same situation as masks. Will be using something as at a less effective rate and will not have the impacts we need to keep our economies open into keep life back to some level of normalcy. Trialslarge treatment were also published, what did we learn in those . One actually work, remdesivir, and one doesnt. Trials weresivir published and they are encouraging, they support some of the treatments that the president received. The remdesivir trial showed not only getting the drug early helps, but if you are suffering severe disease and will had virus in your system the drugs seem to help. Final nail in the coffee coffin for hydroxychloroquine came in and it is clear that there was no benefit to treatment and in fact, there were increased amounts of adverse effects. Wea great example of use similar compounds like that in my laboratory and they work wonderfully in tissue culture dishes. Has never translated into an effective antiviral populations. It is why we do Clinical Trials, it is why we cant assume the something that works in a laboratory can work in the human population. There are a number of countries in europe that have gone into further restrictions, what is the right way to actually Balance Health and economic concerns . Are we better at reading covid19 then we were in march or are we going to see less deaths even if people still go out . The severity of the disease seems to be changing, but that may be links to we are seeing a lot more infections in younger populations now. Mortality in this disease in younger populations is lower than in older populations. I think the medical infrastructure has really learned how to treat covid19 patients well and so the care people are getting is much better and has much better outcomes. John saw through there, that school is purported by 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. Kathleen you are watching daybreak asia, lets get to sophie. The aussie dollar stretching higher, but we are seeing a platter every weakly defined. Holds near a record low and aussie stocks are edging higher with banks providing a boost, but resorts under pressure losing more than 5 with the company being investigated by the company countrys financial regulators for potentially preaching munger Money Laundering and antiterrorism lets get a broader look at how the market is shaping up with almost two weeks left until the u. S. Election. A lot of headline risks remain, but u. S. And asian stock futures are height nudging higher this morning and the u. N. Holding below 670. Currency climb back, the losses that were sparked by the pbocs rule change on october 10. About 41wti holding just ahead of the opecplus meeting and turning focus to new zealand, we are seeing kiwi stocks edged lower for a third session. Course for the best month since june. We have seen the kiwi dollar gaining ground after the cliff. This week weh 68, may get a strongerthanexpected inflation reports from new zealand and overall markets taking that in stride, bonds are trading study. We have recalibrated when it comes to the new zealand Prime Minister is considering a new coalition about her record election victory. She is speaking to the greens saying her second planter may need a stronger administration. In schedule handling of that a number of crises including the coronavirus, we are joined in sydney with more. What are we expecting given that massive mandate she has achieved in terms of policy . Is difficult to say because the campaign was so strongly forward on that covid19 response, more than policy itself, so new zealand is getting a vote of confidence at that. There is a cartoon running in a paper today that says they had a canic attack and academic, pandemic, and the second term wants no surprises. Lier we were speaking to heres with the Business Community wants to see. I think the big thing business will be looking for will be what is going to stimulate the economy. I think that its going to be around the infrastructure. There is plenty to do their. At some point there is going to be a on the border. Paul that at the border he mentions will be important, the board will likely be closed until 2021, that is affecting tourism and education which are a couple big revenues for new zealand. Unemployment likely to rise, debt is seen hitting 50 of gdp by 2026, so this term is about the rubber meeting the road in terms of managing recovery. More than half of the seats in parliament, which he be able to government alone, seemed like a plus to her and her supporters, does it raise any concerns . Paul it does, it is interesting, she now has 64 seats on a 120 Seat Parliament and that is the first outright majority since proportional representation was introduced in the 90s. There are no checks and balances on the government and the system was introduced to stop exactly the result we saw on saturday. The ardent government is now in a dangerous position where it can pursue any policy it wants. It is interesting the discussion with the greens over a potential coalition is likely to continue just under has previously ruled out introducing a Capital Gains tax on her watch, but as revenues that must be starting to look tempting again. The greens on the other hand did campaign aggressively on tax reform especially the idea of a wealth tax, so might make it a bit easier to get some of the tax reform across the board. Kathleen thank you so much paul for some Historical Perspective putting this victory in a different light. Lets get to Karina Mitchell. Karina banking australia is easing virus curves and editorial with citizens that allowed to travel further. Easing infection rates allow state official to businesses remain shuttered until next month, the stayathome order will be completely with hospitality to reopen. China is granting to attract investment for at home and abroad. This grant finance markets protection event lecture property and new economic relations, China New Service as the policies are more wideranging than those given to the free trade. Many tech to companies. Protesters in thailand are bowing to continue despite warning from authorities and a state of emergency in bangkok. New protests are reported across the capital and in at least a dozen provinces elsewhere in the country. Authorities closed real stations ahead of sundays latest rally and are reported to have fired mortar cannons to disperse a crowd. Water cannons to disperse a crowd. Iran is calling a man meant to a seen as a is symbolic victory for tehran and a blow to the u. S. Which has been trying to pressure allies to extend it. Washington has repeatedly warned that any state or individual will face u. S. Sanctions if they supply conventional weapons to the islamic republic. Global news 24 hours a day on air and on Bloomberg Quicktake powered by more than 2700 journalists in more than 120 countries. Im Karina Mitchell this is bloomberg. Up who will the most power in the asiapacific, we discussed how the pandemic has eroded american influence with low institutes joining us next. This is bloomberg. Haidi the u. S. From is a top power in the asiapacific but it suffered the biggest all and its regional standing over the past year partly over its mishandling of the pandemic. This is according to the lower lowy entity debt. We are joined by the director of this index. Great to have you with us as always, this is a trend in terms of the pivot away from asia, the erosion of the u. S. Dominance and influence across the region and the growing power of china. This has begun prepandemic, but it is really the virus that has exacerbated this trend. Yes, the virus has accelerated history and has produced some new regional disorder framed by lame, confrontation between two great powers. It has not been great news for china either, but even worse for the United States and that in that it has dropped in its relative standing in the region in large part due to its handling of the pandemic both domestically and globally. This has a result in the loss of u. S. Prestige. China has also emerged diplomatically diminished from the pandemic, its overall power is level with which in itself is interesting given that last year we saw it rush to the highest gains in its relative power. The result of that is that chinas standing in a region where everyone else is far less powerful than a year ago as a result of the economic crisis, Public Health, security challenges that all the countries in asia face, the result of that is that china has consolidated its lead over the rest of the region. Haidi it is really fascinating when it comes to china, so would it be correct to say that the consolidation and gains to be made by china when it comes to regional and global power onferentials really relies that rebound, the economic rebound continuing . Herve i think far more important than any loss of prestige will be the sequencing of economic recovery which will be very uneven. On the one hand as you just mentioned, china had already rebounded despite damage in earlier quarters brought on by the pandemic. It is the first major Global Economy to do so. A lot of the advanced economies like japan and the United States will take several years and may be the better part of a decade to return to precovid levels of Economic Growth. We do not forecast it until around 2027. It is also an emerging also emerging economies like india that has taken the hardest hits during the pandemic at least relative to its prepandemic growth trajectories. Indias overall gdp forecast for 2030 this year is your teen percent smaller than what we had forecasted. An effect that means the Indias Economic output by the end of this decade may only refer reach 40 of chinas output. Indias rise of the superpower in our region has been delayed, it will certainly not be linear and in fact, this year it fell short of the major powers where it succeeded last year. It is bad news for india and keep in mind as well, much of south asia as well as developing asia now it needs to deal with the emergences emergence of a new class of covid poor. Willllion more people follow under the International Poverty line as a result of this pandemic and that is a big cause for concern. Kathleen i think what is important about the index is it is not solely dependent i Economic Growth. In terms of trust, the diplomatic power and leadership that china would like to have to be more hegemonic, in asia, you point out that it is going to have military capability, but you say lack of trust among 11 neighbors which with which china has boundary disputes undermine the potential for beijing to replace the u. S. As a security in the region. That strikes me as a very powerful course force working against china, one that i assume it would likely change of a could, but one that does not show any signs of changing. Herve that is right, the rhetoric and belligerence shown by chinese diplomats has been novel. That is a longstanding handicap chinas rise in the region, what we see is a soup power that has pronounced strengths and weaknesses, its strengths obviously well known and in terms of economic vitality, its relationships. But actually, its weaknesses are just as telling, and it is not just in terms of its domestic relations with neighbors, but consider that china still spends more on itjecting power inwards then does on projecting power outwards in terms of its military spending. On top of which there comes a point in 2030 where china starts to age much faster and is set to lose about 177 Million People from its working age population by the mid Century Point compared to current levels. All those economic and social challenges to come and leads to an assessment that we think that the United States nor china will be able to affirm diplomacy in the region. Kathleen lets talk about the middle powers, vietnam, australia, taiwan, the only countries to gain relative power in 2020. Divers countries they are, what do they have in common . Herve they are very diverse and in fact the standing on the rankings is verse. Diverse. We have vietnam which is just taken over new zealand in 12 place and we have australia with another pandemic handling success story, but overtook south korea. What they have in common is that of the margin that each tried to shape the regional order to the extent they can. They do not have the power to dictate it, but in important ways we see for example australia leads in terms of diplomacy initiatives in the region in terms of the rise of bilateraltrilateral, quadrilateral arrangements with not only the u. S. , but also more importantly, its nonallies indonesia, india, vietnam. Australia has been far more nimble at playing this game than the United States. Have inppears to reaping the dividends in that way. Vietnam has become a far more dense multinational player, it was this year where it really steered negotiations for the upcoming trade deal. Worldsld be the largest freetrade agreements short of just the wto. Rolen obviously played a in the transfer of power, it is also very vulnerable in relation to china, but it also really prevents china from acquiring a navy unrestricted access abroad as far as taiwan continues to exist as an autonomous, selfgoverning charity territory on the shore china. Kathleen thank you so very much joining us from the lowy Asia Institute power and diplomacy program. Very interesting, i suggest you all look it up. If you are away from your screen you can always find indepth analysis of the todays big news maybe its on Bloomberg Radio broadcasting live from hong kong, you can see a picture there. Lattimore had, stay with us. A series of typhoons and south korea has left the country facing a catastrophe. Of cabbages were wiped out across the land causing prices to search, were joined now on the line from seoul, what are the implications of these higher cabbage prices . Kimchi is vital to south korea and many other places. Cabbage prices here have surged more than 60 in september from a year ago and this is quite disastrous because cabbage is the main ingredient for kimchi which is the traditional staple dish. This is happening right before the countrys annual nt making season which typically happens every year between mid november and december. During this season people make kimchi that will last for the coming years, so they buy cabbage and other vegetables in bulk. As cabbage prices are going up, this means people will have to pay more for their kimchi. Also there has been a shortage of readymade kimchi as well due to the recent destruction. Are prices likely to stay this high . Prices have gone up mainly because of the extreme weather as we said, but it seems like prices are stabilizing, the Agriculture Ministry said prices are cooling off and a shortage of readymade kimchi is easing. Still, the countrys biggest producer of kimchi has suspended its online sales because of the and it is looking for alternative supplies to meet demand which has been high this year because people eat more at home due to the virus. Prices are showing signs of stabilizing, analysts say that uncertainties are still going to becausever some period the season will start in midnovember. Our asian commodity reporter there with the latest, we are seeing breaking news when it comes to the trade future in japan. We are getting an even bigger trade surplus than expected. The september seasonal adjusted levels actually lower than expectations, 475. 8 billion yen is what we are getting against expectations against almost ¥850 billion for september. That is an adjusted basement basis, the trade for september coming in at easy estimates of ¥980 billion accelerating from the ¥248 billion in the previous month there. We had been expecting a much more number, we are seeing a decline of almost 5 when it comes to the year on your export. Almost twice as bad when it comes to the 2. 4 expected. The import number seeing a confession of 17. 2 does not bode well when it comes to domestic demands, but still other than expectations of a contraction of over 21 when it comes to imports. Certainly it does seem when it comes to external demand as well is internal demand, not doing a whole lot to boost that trade surplus there. Kathleen i guess theyll have to keep upping, lets get a quick check of the latest headlines, is said to be near resources on what could be the largest share deal since Energy Demand collapse. We are told the two are finalizing terms on an agreement can come later monday. The caribbean based in texas and new mexico. With rival only and chevron. And basicco industries are to reevaluate their oil for chemicals project to cut costs amid a widespread bump in prices, the two are reassessing the project on the red sea coast which was expected to cost as much as 20 billion to improve existing facilities rather than building from scratch. Sources say aramco and then have discussed the deal altogether. For about our and williams 100 Million Dollars for a private investment group. The deal brings iconic austrian bookmaker back under australian ownership. The outfitter had been in the hands of Louis Vuitton private equity firm u. S. Ensure american equity Asset Management after rejecting a proposed 3 million takeover by massachusetts mutual. 437 a share and a 15 premium to fridays close, brookfield will also have a seat on american equities. Creditors for Indias Jet Airways are expected a 140 million u. S. Dollar rescue plan put forward by local capital and the package aims to revive the airline rather than see it to recovery and it was approved overwhelmingly. Jet airways was granted by insolvency in june last year, numbers have since fallen from 9000 to just 4000. Haidi we are getting an alert when it comes to trading in Crown Resorts, that stock is falling almost 7 on a news of this antiMoney Laundering probe. They are being investigated by australias Financial Crime rig later for potential breach of antiMoney Laundering and counterterrorism financing did it really piles on pressure of this gaming and resorts company that is already under fire. The Government Agency has begun a probe into compliance at the crown melvin melbourne, that is the flagship. Crown has said in a statement these concerns arising from assessments goes back to september 2019 which focus on how crown handled highrisk and politically exposed persons. There is a separate inquiry taking place for following media reports of gains Money Laundering at casinos that they used with links to drug traffickers as well. That has unearthed a pile of Risk Assessment failures, they have been called for a board shakeup. We are seeing Crown Resorts falling 6. 7 , now 7 lower in the first hour of trading. Lets take a look at other movements in terms of asian markets now setting up for the start of this trading day. This is how the broader australian markets are seeing, 6 10 of 1 higher, we are seeing not much of a night higher in the first hour of trading. We have lifted restrictions across some parts, victoria as cases continue to come down a bit lower there. Calls for that to be accelerated, new zealand we are seeing declines, modest, about a quarter of 1 higher as we continue to see just the aftermath of the resounding reelection over the weekend. She has the mandate of the labour party to go in alone, the first since 1996. Talks to the former coalition are still going. Nikkei futures at six tense of 1 higher, but a mess when it comes to trade exports as well as trade surplus. Like featured looking lagging as we get into the next hour of trader. Coming up, chinas gdp release just out of the few hours time we will review the numbers with harper kennedys an antiquities manager tells us where he is looking for opportunities across the region, the market opens in seoul and tokyo most upon us. This is bloomberg. [narrator] this is kate. Hey. [narrator] she takes two prescriptions. Kates son jack, takes one too. Kate works hard, and thought she had good insurance. But she still pays too much. Thats no good. So kate downloaded the goodrx app. Now she can compare prescription prices, to find the best discounts. She even beats her insurance price. Good for you kate, good for you. Goodrx, stop paying too much for your prescriptions. Download the free app today. Welcome to daybreak asia from bloombergs World Headquarters in new york. I am Kathleen Hays. Haidi asias major markets have just open for trade. Pelosi stories, nancy sets a tuesday deadline for a stimulus deal while President Trump again calls for deep spending. Some to bankers one support will be needed for some time to come. Investors await the latest gdp data from china. A recovery is suggested to continue with Third Quarter growth above 5 . Demonstrators continue their antigovernment push in thailand despite official warnings of a state of emergency in bangkok. Weekend protests were reported in provinces across the country. Lets get you straight to the market open in seoul and tokyo was Sophie Kamaruddin in hong kong. Sophie in tokyo after a twoday drop, we are seeing gains for the index by. 7 . Keeping an eye on telco on a nikkei news report that the administration is looking to investigate Business Practices that may result in higher prices. 105king on the yen, mid levels. On the ecodata front we got september trade numbers from japan this morning showing exports falling for a 22nd Straight Year on year drop. Checking in on the open over in south korea, were seeing the kospi gaining ground after a four data client. The korean yuan continuing together pace, now eyeing 11. 42. A four month rally does not look like it will lose steam anytime soon. By recovering growth at home as well as in china. Gdp reports due later this morning. Falling below 670. Lets check in on tiffanys this morning. We had the election in new zealand. Kiwi stocks opened higher but now swinging slightly lower. A little change. In sydney we have banks and tech stocks helping to lift the asx 200. Crown resorts under pressure this morning, falling more than 9 as the casino operator faces and antiMoney Laundering probe from australias Financial Crimes regulator. When it comes to the forex space , the aussie dollar swinging around the 71 level. The base for the currency in the mediumterm. The rba pursuit of lower yields may add pressure to the currency. Ground, dollar gaining higher this morning. Whetherontinues over the rbnz at may look to push towards negative rate Inflation Numbers later this week. New zealand may add on clarity. Cpie get a Strong Enough number from new zealand. Haidi breaking news when it comes to the chinese eu retail giant alibaba. Group holding to invest about 3. 6 billion to increase sunart retail group. Ecommerceeyond opportunities. Alibaba set to raise indirect stake in the company to 72 , taking a majority stake in that 3. 6 new been 3. 6 billion investment. Billionspent about 2. 6 for that 36 in the same company. In 2017. We know this is part of the broader strategy for alibaba to expand into their brickandmortar strategy. Y have invested in home a cornerstone of alibaba future growth strategy, which really has, as we have seen when it comes to home delivery, demand across the pandemic, in china, really begun to pay off. They have hundreds of supermarkets across china operating under a couple different brand names. Kathleen joining us now to discuss this top conviction call is sunny bangia, asia Portfolio Manager at and tiffany partners. Put it in a broader perspective. When you see alibaba putting its investment into a number into another consumer force in china, what does this tell us about where the economy is going, where the markets are going . How do you see the forces pushing china now . Sunny sure. Thank you very much for having me on. Either way, you think about asna retail, or ecommerce, kind of the future of where retail globally will probably head over the next decade. And alibaba perhaps being the described asat was new retail. The convergence of offline and online. Offline does remain four times larger than online. Ultimately, it is not about everything gravitate online. It will be about how do you serve the consumer, how can you meet their needs, whether that be in the offline or online channel, and can bob a i think this is just an ongoing move we saw an investment in dutyfree a few weeks ago. They are really investing for the long term. Kathleen of course you sent us some of your top conviction calls and one of them is chinese ecommerce will continue to do well. Gd. Com onlibaba and your list. So what kind of price appreciation do you see for alibaba, especially ahead of the ipo . Sunny sure. Alibaba has had a great run this year, and it has been a conviction holding for us. Alibaba as a big driver Going Forward is a lot of these investments that are being run through the p l are reflectively Growth Opportunities that will open up in future years. As the market gets more comfort willthese investments suffer losses because investments go down, more of the p l will come through. We saw hints of that in the alibaba investor day last month. Beinga talked about them less of a drag, and the markets really reacted favorably. I think that continues. These investments are heating up about 20 . Then also talking about the growth of that. There, wesits in think is an exciting growth driver over the next decade. What about the true tech side of things . The smi side, the sensitive side. We have news china is passing a new law to protect sensitive and valuable technology in the same weight washington has done on its side. Could that potentially create some headwinds when it comes to dealmaking, investment, that side of things . Even when you look at the uncertainties facing the tiktok and oracle deal . Sunny i think that is right. Whether this law came to fruition or not, i think it was abundantly clear on both sides that they want to keep their m a deals away from one another. Also, just the expansion of Chinese Internet Companies into the west, particularly the u. S. Has been looked on very unfavorably. This is just cementing that view through legislation. I think there is a feeling on both sides that they just do not want to share. Which i think effectively drives anda, domestic consumer, just encourages the government to focus on building out that consumer in terms of policies, in terms of positive affirmation, in terms of the size of the consumer. I think the chinese online such as companies with nike or apple for the moment operating in the domestic home market, given that is where Consumer Preferences are, and will help consumer china rise as a consumergerman economy. Consumerdriven economy. You have seen a bit of noise on the Semi Conductor front. Its ultimately eight lose its ultimately a loselose if both sides go to an allout tech war. Haidi in terms of beneficiaries of the ongoing chinese recovery, which markets are best positioned across asia . I know you like samsung. Ofknow samsung has been one the beneficiaries in terms of external demand. Sunny that is right. I think south korea is in a good position. Positive on the korean yuan . The korean yuan. Exports driven by autos. Memories will kick in. Look quite positively favorite. Samsung is in a good spot. I think the recovery will broaden across asia. Were seeing evidence in india of a domestic recovery kick through. Thats interesting because india did not implement very hard fiscal stimulus, so a lot of the recovery is a private sector economy, which we think will benefit some of the banks. To seea, well continue the offline recovery stuff. We have already seen a very big rebound in domestic travel. And i think we will continue to see a rebound in Offline Retail across china, and we think some of the companies on the offline. They will benefit from that, and restaurants will benefit from their offline recovery continuing on. China i guess is just dealing with the virus. It is managing it well. That bodes well for an Offline Retail recovery. Sunny, always appreciate your time. Lets get to Karina Mitchell now with the first word headlines. Karina we start in new zealand, where the Prime Minister is weighing a new Coalition Government despite her Party Winning a rare outright majority. Labor secured 64 seats in parliament, which will allow the party to govern alone. However, she says her plans for the next three years may require an Even Stronger majority. Is easing australia virus curbs inventory at with citizens of melbourne now allowed to travel further and for longer than during the 100 day plus lockdown. Easing infection rates allow state officials to list lift some curbs, but many businesses will remain shuttered until police next month. Global Coronavirus Infections are now approaching 40 million, with the u. S. Approaching announcing more than 50,000 new cases. France set a new record with 32,000 new infections, while italy is considering the tightest restrictions since the lockdown ended. German chancellor Angela Merkel is appealing to people to stayathome, while the u. K. Added 100,000 cases in a week. The coronavirus remains high on the agenda for global Central Banks, with fresh warnings about government restrictions, a fragile recovery, and the threat for jobs. Japan, the euro area, and the u. K. Were united in their support, saying will remain vital for some time. The boj governor warned again that japan is at risk of recession. Global news 24 hours a day on air and on Bloomberg Quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Mitchell. This is bloomberg. Show, moreext on the on chinas key gdp release in a few hours. Will the numbers be enough to give markets a monday boost . And analysis later this hour with Harvard Kennedy schools shirley yu. This is bloomberg. S bloomberg. Beijing has passed a new law aimed at restricting exports in order to protect National Security. The law gives beijing countermeasures against the u. S. , as tech tensions rise further and further. Lets get the latest details from Tom Mackenzie in beijing. Tom, is this titfortat . It certainly seems to be a response to what we have seen in terms of the actions from the u. S. Targeting, for example, exports from the u. S. To Companies Like huawei, more recently smic, chinas largest Semi Conductor maker. Also the actions against the likes of tencent and bytedance on National Security grounds in the u. S. It does seem to be a response to that, giving china and the Chinese Government a framework to impose their own export controls in everything from Nuclear Technology to software and algorithms. Of course algorithms are consequential when youre looking at the tiktok oracle deal, which continues to be discussed and worked on in the United States. It gives them a framework in which they can then impose their own actions around exporting or controlling the exports on National Security grounds from china elsewhere. They could view this new law potentially as a countermeasure Going Forward as well. It will be implemented on december 1. We will have to see to what extent china is prepared to use this and how far it is prepared to go. But it does seem to be a response in this broadening Technology Cold war, as some have defined it. Haidi china gdp out later expected to show a strong rebound. We also get domestic activity data later as well. I want to point out, your analysts did say jd. Com, we are the breaking news alibaba boosting its stake in sunart retail by 3. 6 billion. So how much is that domestic consumption story going to drive the continued rebound we see from china . Hope is that the consumption rebound, for the consumption part of the recovery, will be the next leg, essentially, that will continue to sustain chinas growth Going Forward. During the pandemic, Ecommerce Companies like jd. Com and alibaba were consequential in ensuring people were supplied with everything from food to medical products. And they actually did very well with Ecommerce Companies. Biggestad one of their Logistics Centers in the country, they handle about 800,000 different orders a day. But you are right. Theconomists are saying at beginning of the recovery in china he saw a heavy focus on Infrastructure Spending. That was a big part of the stimulus. Also exports. The export engine kicked into high gear, shifting and selling products from medical equipment to work from Home Technology to countries in the European Union and the u. S. The hope is now consumer will step up. They have not yet because in the first eight months of the year, retail spending is down about 9 from the previous year. Were expected to see it take up about 1. 6 for september, but you are still going to see a rule at consumer level relatively depressed. But the hope is Going Forward, that will pick up. Hopefully we saw consumer strong consumer data over the golden week holiday. The big number focused on will be thirdquarter gdp. 5. 5 for the Third Quarter, essentially making up for the last part of growth lost part of growth. We are also going to look at Industrial Production which is expected to continue to grow. Jobs numbers will also be in focus. A divergent picture between the richer parts of the economy, and those lower tiers when it comes to jobs. The data out and expected at around 10 00 a. M. Local time. It is a divergent economy here in china. Indi Tom Mackenzie there patient. T, protesters in time land in thailand valent to continue their antigovernment push despite warnings from bangkok. This is bloomberg. S is bloomberg. Kathleen protesters in thailand are vying to continue their antigovernment push despite warnings from authorities. Thousands took to the street for a fifth day amid reports of protests and provinces across the country. Our reporter has the latest from bangkok. Few weeks. E a what is the latest . Saw wasasically what we police and protesters playing a cat and mouse game. Protesters are defining the state of emergency rules, a ban on large gatherings and the threat from police of a crackdown. They have been holding protests daily since wednesday. Saw protesters having to change the venue lastminute because there planned area was blocked by police. Man they were using Water Cannons for the first time to probe to disperse protesters. Saturday, authorities shut down central bangkok to block protesters from gathering. But demonstrators went ahead and gathered in several locations anyway. On sunday, the protest organizers told supporters to get ready, but they did not announce a venue until later in the afternoon because he wanted to avoid police blocking the area again. Haidi given what happened over the weekend, does that move the needle at all for the protesters and the government . What are the options now . Randy what we saw was an escalation in the protest escalationd also an in government actions against the protesters. Thatrime minister has said police should enforce the law but should also avoid violence. That is part of why we saw police use tactics like firing Water Cannons at the crowd to disperse them and arresting leaders. To continue. Wed they are demanding the release of the detained protest leaders as well as keeping their regional calls for government is ignitions, rewriting of the constitution. Kathleen what indication have we gotten from the government that they will respond, that there will not be violence . Randy the Prime Minister has said that he would not resign. Key Political Parties here said they would not touch anything related to the monarchy. The only thing that might buy time for the government would be restarting the process in parliament. Some key members in parliament are expected to meet today to discuss the protest situation. But protesters said they would continue their movement until all their demands are met. Bangkokandy in continuing to cover the protest for us. Crown resort tumbling in sydney on news its under investigation by a crimes regulator for potential breach of Money Laundering laws and counterterrorism financing rules. Compliance at its flagship casino in melbourne. They are looking into how they handled highrisk figures. They are already under pressure for failings of government. Australian mining tack tycoon has bought iron williams for 190 million aussie dollars. It brings the iconic australian boot maker under australian ownership. They had been in the hands of a Louis Vuitton firm. Has insurer american equity plans for a new partnership with brookfield Asset Management after rejecting a proposed 3 billion takeover by massachusetts mutual. Brookfield will take in your 20 stake in the insurer for 37 a share and a 15 premium. Brookfield will also have a seat on american equities board. American Airlines Says it is aiming to return the boeing 373 winsby the end of the if it the goahead from regulators. They are planning to operate a daily flight between miami and new york on december 29 with bookings open. Groundedax has been last year after two fatal crashes in indonesia and ethiopia. Next, china fighting back with the u. S. Political economist shirley yu tells us what it means for washington, the world, and for chinas biggest companies. Haidi breaking news. For its hongval kong ipo according to the ifr reporting. Last week there had been something of a delay when it comes to the Securities Regulator probing a potential conflict of interest. 35 billion dollars stock listing had delayed the approval for what could be the worlds biggest ipo. We are hearing from ifr. They have won approval for their listing separately. Still waiting for that before to panel of professionals give the potential green light for the ipo that was expected a while ago. That also still has not happened. We continue to see incremental progress when it comes to dual listings in shanghai and hong kong. Of course they want to get that done before volatility intensifies going into the november u. S. Election. Lets get to Karina Mitchell now with the u. S. With the headlines. Karina the stimulus saga keeps dragging on in washington. Nancy pelosi setting a t a tuesday deadline. President trump wants a deal before the election. He has indicated he will go further than the 1. 8 trillion package put forward by republicans despite Senate Majority leader Mitch Mcconnells rebuff. The president says he is confident he can convince critics. The u. K. Is said to beat rewrite its long lawbreaking brexit that could in a move revive failing talks with the eu. They said the quote, door is still agar. He said he is keen to conclude and it takes two sides. Boris johnson said friday that talks are over and the eu must compromise. Opec and its allies with the resurgent coronavirus again threatening demand for energy. Russia area and already stepping up, with more supply coming in online from libya. The cartel is under pressure to revise its output. They admit oil demand is at best, quote, anemic. Iran is hailing what they call a momentous day as a u. S. Arms embargo expired. The lifting of restrictions signed under the 2015 nuclear deal is seen as a symbolic victory for tehran and a blow for the u. S. , which has been pressuring allies to extent it. Washington has warned any state or individual will face u. S. Sanctions if they supply conventional ways weapons to the islamic republic. Japanese exports decreased at a single digit pays for the first time in seven months in september, pointing to an improvement in global trade. The value of shipments fell 4. 9 from a year ago. The average estimate was for a fall of 2. 4 . Exports to china rose for a Third Straight month. Global news 24 hours a day on air and on Bloomberg Quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. To take awe want quick look at asian markets. How they are performing. We are going to look at japan, south korea, and austria. Nikkei up nearly one full percentage point. Broadly speaking, asian stocks are rallying on hopes that maybe stimulus talks in the u. S. Will get someplace. Japan,cifically also for we got there latest corona counts data and exports fell at a less severe rate. That is a plus. As we look at the kospi, we can see it is up about. 7 . Samsung electronics contribute in the most today. Australia,e on to australia also having a very nice day, climbing in a broad rally. Technology stocks leading. Maintaininging, fiscal year 21 guidance. That is definitely a plus. New zealand, i think they really had a lot of optimism for the stock market going into the election. The Prime Minister having a resounding reelection. Now there is expected to be talks around stimulus, but perhaps it was a step back as people regroup and decide where those markets are going to go next, and exactly what the new what the reelected Prime Minister is going to do. Haidi we have been hearing a lot about the u. S. Going after chinese tech firms like huawei, tiktok, bytedance, wechat, tencent. Now beijing is fighting back. Restricting exports from chinese firms to protect National Security. Joining us to discuss the implications is shirley yu, a political economy at the Harvard Kennedy school. Always wonderful to have you with us on bloomberg tv. Give us your thoughts given we see the Standing Committee adopt this measure. To some extent this is titfortat, but there are enormous implications of these chinese tech giants wanting to go abroad. Shirley absolutely. If you look at the portal, they downplayed the export control law. They said export control is common practice by the United States and by the eu, so china is complying with global norms. But we all know it is more than that. But state media did come out and say china will possibly use export control laws to act against the offenders and abusers of export control that harms chinas National Security interests and National Security laws. With that, it looks like china has launched this law as a different measure, not as a preemptive measure. And china has seemed to establish a second strike measure, it will only strike back at countries that abuse the export control rules. I must say, theres nowhere to respond with the name of the United States. Haidi we are just hearing now taiwan is set to tighten its tech transfer rules to Chinese Companies, according to the edn. I am wondering how this landscape potentially changes if we get a change to the Administration Come november. China and u. S. Technological competition is going all out. You just mentioned the best technology companies. They have been so much in the global headlines the past couple months. With this export control law that china just published, there are some caveats, one of which is that it applies to all companies in china, including foreign invested ones. We all know that tiger global, kkr, softbank, they are all investors in bytedance. They are dying to make sure that Chinese Companies are legally domicile assets of china are companies that are foreign invested, that they must comply to this export control law now from the law of the land. So this technological competition is going to further extend into the leading chinese technological companies. But rather than configuring post november if a Democratic Administration will treat china differently, i doubt it. But for these leading Chinese Companies, it is important to watch how they have been responding to the issue. Alibaba and all tencent and bytedance recently moved their headquarters to singapore. They are hiring hundreds of talents there and trying to penetrate that entire region. Its a region that certainly has a demographic advantage, and certainly economic vibrant, but also welcomes technologic innovation. The addition of these chinese Global Companies not be dissipated by this they are going to continue to revert the directions perhaps and going to penetrate kathleen markets around the thirdare waiting for the quarter gdp number for china. Its become a battle. Growing fast is not just about, oh, my country is doing well, invest in our country, but it is about who is better. China has controlled the virus better. China is going after power now. We know gdp will come and do. How big of a weapon is that for china, besides being something that their economy and their people badly need . Shirley i should say chinatis have, relatively speaking that china did have its been a remarkable recovery. Possibly looking at gdp 5. 1 to 6. 8 range on back of a contraction in q1. Within three quarters. That vshaped recovery has been prominent. This 5 range, from a longterm structural planning for china, it does set the chinese Economic Growth in a comfort zone in terms of understanding not just relatively how china is doing in 2020, but chinas Economic Growth expectations are within 5 to 6 range. China want to say does look at a lot of domestic priorities. Big years year is a for china in a sense they have a fiveyear plan, one of which is to 5. 5 orneeds to grow so. Tohleen i have to jump in get a quick question. I hope you can be brief. Index, chinaer moved up closer to the u. S. , the u. S. Pulled back a bit. Where china does not score well is trust in china. The ruler plays in the region. The very intangible level of diplomacy and that kind of power, china does not seem to be doing well. Do you agree with that, and what does that mean for china . Quickly, please. Shirley china has a lot of economic power. Increasing military power. It certainly has a lot of maneuvering place. But china is not a country i think is very skilled in using its power, particularly in the diplomatic space. Postcovid19 there have been a lot of political acts which have not been advantageous for china. China is going to have to learn how to adapt to the global norms. Kathleen ok. Us. I shirley yu with we have some breaking news again. Looking to seek Hong Kong Exchange listing approval monday, according to the ifr. We really heard they had won approval froms China Securities for a hong kong listing after a delay because of a conflict of interest. We know the hong kong hearing when it comes to that panel of external professionals that needs to happen before its hong kong listing takes place is still yet to be held. Group plenty more to come on daybreak asia. This is bloomberg. Is bloomberg. Kathleen u. K. Business is being urged to ramp up deals with a no deal brexit. The government told eu officials not to bother coming to london to continue negotiations, but also says the door remains ajar. Schneidern this, jodi joins us from hong kong. What is Boris Johnsons next move . Is this posturing or what . Jodi looks like it may be some posturing, maybe a game of chicken. As you note, negotiations have indeed stalled, some would say broken down. The Prime Minister announced friday he will focus now on preparations to leave the eu Single Market and Customs Union at the end of the year without a trade deal. Though he said he is still open to talks if they change their stance. But there is a big obstacle there. There has been a lack of trust. The trust is badly damaged by johnsons u. K. Internal market bill which basically rewrites part of the brexit withdrawal deal he struck last year with the eu. The eu is now taking legal action against the u. K. , european leaders saying johnson needs to drop this controversial clause as it relates to trade with Northern Ireland as the price of any wider accord. The Prime Minister has refused but his hand may be forced because members of the house of ds will remove the cause remove the clause and that bill will begin its process the house of lords today. Haidi what is a likelihood of new talks taking place . Jodi it is hard to gauge. Basically there is always a bit of a room and we have seen both sides say the door is open. But because that trust has been damaged, there is not a lot in it at this point for the to give into boris johnson. He will have to come up with something. His Cabinet Office minister over the weekend said the door was still ajar for talks, but even he was more hopeful less hopeful than in recent weeks that a new trade deal will be reached. They really need to nail this down in the next few weeks if they are going to be able to borisp with something, or johnson will be very seriously looking at how to leave the eu at the end of the year. I know we have said this for about the past four years, but it is looking like that. Running out ofis road. Jodi schneider in hong kong. Next, alibaba goes shopping, spending more than 3 billion to boost its stake. We look at the implications that the brickandmortar strategy. This is bloomberg. This is bloomberg. Haidi alibaba is spending more than 3. 5 billion to boost its stake and take control of Chinese Market sunart. Know this bricks and mortar combined with ecommerce strategy has been a couple years in the making. Are they doubling down on a Business Model that was so profitable throughout the course of the pandemic . Yes, i think so. The new Retail Division has grown into a 12 billion business. It is really an affirmation of something the ceo himself spearheaded many years ago. I think this is a sign that the groceryaking Delivery Business in particular very seriously, which they should because it is one of the hottest segments in ecommerce right now. Kathleen what do you expect to see next . Are there more acquisitions like this. I think everybody from given everybody is piling into what they think is one of the final untapped frontiers of ecommerce, i think you can expect to see more from alibaba. Lead for versioning the chinese ecommerce giant in the space. Chan jumping in on a very hot story. A check of the latest business flash headlines. Wongroups mega ipo approval for a hong kong listing. The ifr says chinese regulators have given the green light, which could be the biggest ipo on record. They aim to raise 35 billion and is listing its lift pacific isf cathay said to meet in the next few days about Restructuring Plan that includes staff redundancies and pay cuts. Some analysts predict a third of the review of the workforce could lose their job as a carrier struggles amid the pandemic. Extraordinary monetary moves during the pandemic is having investors look for new strategies before mitigating risk. We spoke with the global head of blackstones Investment Management unit, gso. Fact that about the rates are so low today, that the wind that has been at our back for a long time of falling rates, we dont have that now. Investment rate is inside 2 . You are getting duration risk. You are making longterm investment decisions. And today, you dont know how long rates will stay this low. So i worry that you see rates go back up, which i do not think will happen in the real nearterm, but over time as those rates kickback up, fixed income exposures, you have to be really careful about because you are not getting a lot of yield to offset a decrease in pricing caused by an increase in rate. So i am cautious about that. How does that change the way you underwrite your expectations here . Once again, it gets us back to this difference between the private and the public world. On our public strategies, we are differently moving higher. We want our companies, better management, strong sponsors in our leverage loan business, because we believe they will outperform and grow into their Capital Structures or grow into less leverage. So that is how we are managing that on our leverage loan side. On our private side, we are able to jump in there and take advantage of dislocation. If a company is coming to a market, if a private equity firm wants to buy a public company, they cannot really finance that in the bank markets because they need full committed capital. So we can step in and provide significant capital. We did that for a large chemical acquisition in europe this year, where we provided half of the financing they needed before they made their bid, then they went out and placed the rest of it later. I think those kind of situations in this kind of market will be where we are more aggressive. I was about to just ask you, the year of the pandemic you just pointed to an opportunity there. Whatworth asking you, opportunities are you seeing to put money to work . What looks like the most investable opportunities . Were seeing i want to be careful, because we are being cautious. We have been talking to investors about this idea of cautiously active for the last six months. We describe that as we are worried about where this pandemic leads. We do not really have a great insight into when we will be back in theaters, or back on airlines. So we have been cautious about that, but we have been active because the Higher Quality names traded off with the lower quality names, and we were able to invest in those, and the private market shut down and began to reopen and we were able to invest in that. So we believe there will always be an opportunity. I will give you an example. In the credit business, in our Life Sciences business, we provided to billion dollars to a company this year in the middle of a crisis, in the form of royalties, in the form of a loan, equity. That 2 billion was critical to that company to push through this cycle and to grow. So i think we will always see those opportunities and try to make sure we use the value of our platform, the scale, the broad nature of our products, because those things will give us those oneoff, take a shot and do something really important in those markets, at the same time we continue to make investments on the public side of our business. Haidi blackstones dwight scott there. Lets get you a quick look at the markets trading around the region, starting off this trading week. The nikkei seeing an upside of about 5. A little bit of a miss when it comes to the japanese export and import numbers. Some optimism as we are getting to a day that yields thirdquarter gdp numbers out of china. Expected to keep further tailwind when it comes to the demand story. Kospi up by. 3 . Closely correlated to export numbers expected out of career later this week. In australia we are seeing gains just under 1 as we get further restrictions lifted when it comes to the major state economy of victoria. In new zealand after the weekend, really extraordinary outright majority secured by the Prime Minister in a resounding reelection victory. Seeing sideways trading when it comes to kiwi stocks. Lets take a look at how the future session is setting up for trading in the u. S. Session. This is what s p and many futures are trading, up by. 5 as we count down to the 48 hour deadline set by House Speaker nancy pelosi. Looks like potentially on last chance to get a deal done before the election. Also looking at a little bit of upside going into the start of trading in taipei and on the mainland. Chief up, j. P. Morgans china economist previous chinas latest gdp release that is out and about one hour. Also joined by jeffries Global Equity strategist. Im dough hirsch. You may already know that goodrx can help you save up to 80 on your prescriptions. Unfortunately, Many Americans cant get to a doctor right now. The good news is that for many Health Issues you can see a doctor online. Its easy. Just go to goodrx. Com and with a few clicks youll be treated by a licensed medical professional all from the comfort of your own home. Visits are confidential and affordable. Need a prescription . Your doctor can send it to your pharmacy or have it mailed to you. Get the healthcare you deserve at goodrx. Com. It is not 00 a. M. In beijing, shanghai and hong kong. Welcome to Bloomberg Markets china open. Coming down to the first trading session of the week. Investors waiting for the latest gdp numbers out of mainland china. Suggestindicators recovery is continuing with Bloomberg Economic seeing thirdquarter growth above 5 . Ipo