Protests against a label law that was passed earlier this month that opponents say will erode workers rights and dismantle environmental protection. This is the dollar index on the way down. One week lows earlier on today. The euro new york crude moving to the downside. We had the report on inventories showing u. S. Stockpiles were indeed much higher than had been anticipated. Dollar weakness, golds gain. Tom lets bring you the first word news and a catch up on the pandemic situation in europe. Be amains and continues to coronavirus hotspot, with new daily infection records in germany and the netherlands. Ing a curfew in madrid. Manchester is being forced into the u. K. s strictest curbs. In the u. S. , new yorks governor blames President Trump for virus deaths in his state, calling him a liar and a super spreader. California is easing restrictions in San Francisco. By the u. S. Ing sued Justice Department for abusing its monopoly in search in what seen as the most significant antitrust action against an American Company in decades. Google controls about 90 of the Search Market in the u. S. Andoj says it is unchallenged gateway to the internet. Forington accuses google using exclusive deals to smother competition from rivals. We think this case is deeply flawed and risks harming american consumers. We compete vigorously in the marketplace. Our sector is marked by prices that are free or falling, and rapid innovation, and those are really hallmarks of a competitive industry. Tom tom the New York Times has published more reporting about President Trumps financial records, including details of previously unknown bank holds in china. The times says the account is controlled by Trump International hotels management, with his tax record showing they paid almost 200,000 in the chinese taxes when he was seeking licensing deals here between 2013 and 2015. Unemployment in hong kong is a 50 year high amid 15 year high amid the recession and coronavirus. Cathay pacific cut thousands of jobs and prepares to close its low cost dragon brand. Local media had reported 6000 job losses. They say changes will see 8. 5 thousand positions gone. The carrier says the Restructuring Plan will cost more than 280 million u. S. Dollars. Those were the first word headlines. To one of the get stories causing a lot of angst on markets. It has to do. With the fiscal stimulus nancy pelosi and Steven Mnuchin not appearing to be closer to a new ilbill, even as Mitch Mcconnell advised the white house not to agree. Kathleen hays has the latest. What is making pelosi a little bit more optimistic cautiously optimistic . Kathleen cautiously indeed. She is sending out signals now. Not so much it being wrong, but taking steps and making progress. She started off fairly optimistic, when she joined us on Bloomberg Television and was asked about how its going. This is what she said. We all want to get an agreement, because people need it and it is urgent. Our economy needs it. We had one bump in the road with the Appropriations Committee. Not sure they will be ready. We are starting to write the bill, then we can negotiate. Im optimistic. Kathleen this was a couple hours before she got on the phone with Steven Mnuchin and, the treasury secretary. Hes overseas, they had their meeting. Reportersut telling they are talking and moving ahead. Her spokesman said the talks are providing clarity, more details agreementundwork moving closer, mark meadows, the white house chief of staff, later in the afternoon confirming something very important, the white house offer , what they want to see on the size of the stimulus package, 1. 88 trillion. Thats getting closer to the democrats 2. 2 trillion. Saying it is not just the amount of money in the package, theres a lot of details, theres a long way to go, and democrats and republicans are still at odds over one big issue, which is aid to states and cities. Republicans say you are just going to bailout people who are irresponsible physically, but democrats say they are laying off a lot of workers. The other big thing is pelosi is preparing a counter offer to the republicans on this whole business of Liability Protection for firms that hire workers. Maybe you get sued because someone gets the virus. So these sticky issues are being hammered out, it appears, at least on the surface. Tom isnt this largely just academic unless we get Senate Republicans on board . What are we hearing . Kathleen thats the thing, Mitch Mcconnell is the Senate Majority leader. A lot of republicans like him are worried about spending so much money, because they have the fiscally conservative people in their region. He has said he will bring a potentially supported bill to the senate floor if it passes in the house. It started with the New York Times, Bloomberg News picking up on the story, hes been advising the white house not to strike the stimulus deal before election. Dollar trump putting the table not caring how big it is, he wants a bigger, but republicans are afraid of a couple of things. What if they have to choose between defying donald trump on the size of the package, on voting in now, etc. , versus alienating their fiscally conservative base . The other thing, they want to get amy barrett confirmed on the Supreme Court. That is supposed to occur next week. They say it will mess it up, probably derail it. So mcconnell is ready to consider a bipartisan deal, but when asked, he wouldnt say if he would hold it before the election. Ahead of the senate, Richard Shelby saying we dont need the details to start working on this, im not optimistic on anything happening. But it does say they are moving ahead. Tomorrow will be important. Nancy pelosi is really softening her position. It doesnt have to be done by today. We have the rest of the week. So there are clearly powerful figures want this done. Tom our Global Economics and policy editor, Kathleen Hays, on the latest twists and turns over stimulus. Still ahead, j. P. Morgan private bank is making a concerted effort to promote equality and diversity across its business. We will hear from asiapacifics ceo. Rishaad next, herald van der asiasointing out how Strong Performance is concentrated on just four equities. We talk about how their strategy is shifting. This is bloomberg. Rishaad lets get a look at the asian stocks. Our next guest has a strong showing in just four equities. Herald van der linde is hsbcs head of strategy. Dislocation not seen since 2000 aids crisis 2008s crisis. What do you rotate . Is it also essentially what we have seen in the u. S. , where stocks have been so dominant . Not a peer asian moment, but you look at the asian equity universe, it is up a couple percent. Theres massive divergence between markets, in markets. In asia, thailand, down 20 , 30 , china up 30 . You have a couple of stocks that have done well, and the others havent gone anywhere. In india, it is not very good, but take it out, the rest of the market, down 15 , 20 , sometimes more. It is really a handful of large stocks that have driven asia hire so far today. A portfolio, that is tough. Rishaad we are looking at a chart at the moment the shows how reliant outperformed. Up, 146 up since the low in march. Is that what we are getting in a lot of other places . We talked about the u. S. , but other markets. Also, have they had their day . You mentioned rotation, but is it growth versus value for the proposition . Thisnk we go dislocation we see in markets, they have really been driven higher. That happens normally. What we see now is of historic proportions. We have not seen this since 2008. If we go further, you go back to the 1990s before we see this. This is historic. That means if you are in those stocks that have done well, you are happy to hold onto it. We also have to assume things will normalize, i have no idea when it might take place, but we have the stimulus package coming out of the u. S. , growth will be better, Earnings Growth expectations look like things will be better next year. Time. Will normalize over that means you might want to dip some toes into those markets that are really underperformed, those stocks that have underperformed. That may be cyclical stocks, some may be value stocks. But you can pick and choose some stocks there. The underlying growth stories look okay. Driven by demographics and things that really dont change. But this is building 2 that. Not necessarily switching out the ones that have done well going full on into those that have not done so well yesterday, but maybe just on the marching margin a little bit. One area you like is thailand. Despite the fact that equity market is the worst performer in asia. Worse than the philippines. We have the protests and demonstrations continuing. Do you look at the political unrest . To a certain extent, we do. It is the same for indonesia. We are dipping our toes in this. Just taking a little bit of a position in some of these markets. For us, its an ongoing process. We were heading into china until mid july. Then we put it back to a neutral move into thailand and korea. Those markets have done reasonably well. So its also structure stories. Now we are dipping into thailand and indonesia. There are people on the streets in jakarta and bangkok for a variety of reasons. Bills are being introduced in indonesia. Theres a lot of other stuff going on in those markets. Those markets really fell further on the back of this. A lot of it is well known. It is priced in. There will be Certain Companies that will fall through this. Not like people will eat less, or shop less in some of these places. So you want to build some exposure to highquality names in those markets that are simply available now, and much more reasonable valuations. China is up 20 , thailand is down 30 . Theres a 50 gap between these markets that have emerged over the last 10 month or so. That is a big gap. We are not going to sell out of all of those big names that have done so well in china and taiwan and korea, but just dipping your toes into some stocks you feel comfortable with but have not moved anywhere since the beginning of this year. The same thing applies to ashares versus h shares. Part of that is the tech story, as well. If you want to get more exposure to hshares, where you looking . Theres a whole bunch of sectors you can look at. It has narrowed over the last couple of years, because hong kong, shanghai, and shenzhen have come much closer together. Now it has reappeared. For the same company, we see different valuations. For some people, that means you can sell at the asian one, move into the hong kong one. It gives you decent exposure to china at a much lower price. That onink you will do a stock by stock basis. For individual stocks. Going through and seeing the biggest gaps, the companies should eventually do ok. Quickly, final question, you are using a radar framework for allocation. What is it, how does it work, and what are the results . Something completely new we have used over the last couple of years. The way we use underlying data is a bit different, so thats why we call it new. It seems to work quite well. Things, thetwo fundamentals going on in certain industries, earnings being upgraded, profitability and valuations, and it look at looks at sentiment. Selly having recommendations, are they raising recommendations . It looks at the fundamentals, the sectors that look good. You see a wide divergence. We play that to a certain extent. They do very well, some of the tech sectors and Consumer Discretionary names, alibaba and Companies Like that. There are some that look to do better, but people havent really looked for them yet. Part of the industrial universe fits into that. Value aty we look for the moment. Tom great to get you on, that. S herald van der linde googlesp, the u. S. Unchallenged gatewaythe latest on the significant antitrust case in decades, thats next. This is bloomberg. Tom welcome back. Google is facing one of the most significant antitrust actions against an American Company in decades. The Justice Department has formally sued the company, accusing it of abusing its monopoly. Su keenan has the story. The case is expected to be followed by additional state lawsuits . Yeah, the federal suit is joined by texas and 10 other states. A separate group of states is also investigating and also may sue. Barrney general william began the federal investigation some 15 months ago and says no one can feasibly challenge googles dominance in search and search advertising. This is also called google, which controls about 90 of the online Search Market. The unchallenged gateway to the internet. Theyre accused of anticompetitive practices, zeroing in on a lot of exclusive deals that has, such as the one with apple, where google pays apple 8 billion a year to be a default search. Googles lead in the search field is undisputed. It is nothing new, it began some 20 years ago with an algorithm that delivered better results for anybody out there. Ance, it has relied on android mobile operating system and these exclusive deals with device makers and mobile carriers to be the default search for millions of users. At this is the abuse of power the government is honing in on. Its not illegal to be a monopoly under u. S. Law, but its a violation for a dominant company such as google to engage in what the government calls practices,y strengthening its power since everybody else is left in the dust. Regulators and lawmakers are also honing in on facebook, apple, and amazon for similar conduct. Im sure google isnt taking this lying down. The lawsuit calling the lawsuit deeply flawed. We expect more of a fight. Tell us more. That would be an understatement. Google was quick to criticize the lawsuit, which has long been anticipated, and the investors shrugged it off. The stock was up some 3 . Googles spokesman called it flawed, that people use google because they choose to, not because it they are forced or cannot find an alternative. The statement went on to say consumers are not helped by this, it might prop up lower quality alternatives, raise phone prices, and make it harder for people to get search results they need. In terms of putting up a legal fight, the tech field is extremely wellfunded. We are talking billions of dollars, very deep pockets. And it is not the first time google has been to the rodeo on an antitrust charge. So a big fight is expected. Regulators and lawmakers are looking at changing the law, and there is the threat that this could upend the way these tech goliaths do business and possibly break them up. By any legal trial will be a long way off, at least one year, and settling before hand is a possibility. You have to wonder if there is a new administration january of next year, whether the antitrust cases increase. That is su keenan in new york. Heres the latest business flash. In terms of japan, ana is paring gains after reports say it sees a record loss this year. The airline expects a shortfall of more than 5 billion as it struggles with the fallout from the coronavirus, like all of its domestic and global peers. It has seen demand for air travel plummet since the start of the year. Aviation analysts dont expect bookings to recover for months, if not, years. Two of chinas Top Tech Companies are being banned from more 5g networks in europe. Being toldzte are their Technology Must be removed from existing swedish infrastructure by 2025 because of what stockholm says is the influence exerted by chinas oneparty state over its private sector. Washington has described huawei as the backbone of the communist partys surveillance efforts. China mobile profit rose for the first time this year on 5g subscriber gains and faster construction of new infrastructure. Net income at the Worlds Largest while this wireless operator increased through september. Just short of 4 billion compared with small declines in the first and Second Quarters. China mobile has opened 350,000 5g stations in this year. A look atets have asian markets. Offjapanese indices coming at the highest of the day, trading positive. It may be half a percent of gains to the nikkei, hang seng, and indeed the china markets below the gain line. A couple of stocks we could be looking at. Looking at whats going on in japan as we go to the lunch break. About 5 billion u. S. Dollars. Brought the stock to pair the gains of the day. Up next, we look at Cathay Pacific and its job losses. 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. Is 10 29 a. M. In hong kong and shanghai, 1029 p. M. In new york. Im Karina Mitchell with the first word headlines. The white house raising its offer and Speaker Nancy Pelosi being hopeful of an agreement for stimulus this week. Mitch mcconnell says the chamber will debate any stimulus package if a deal can be reached. Pelosi told bloomberg earlier more work is needed to overcome spending issues, but progress is being made and a bill is being drafted. We all want to get an agreement, because people need it. It is urgent. Our economy needs it. We had one little bump in the road with the Appropriations Committee. Not sure they are going to be ready. Lets hope they are. We are starting to write the bill, then negotiation. Im optimistic. Businesser news, u. K. Leaders are unhappy and unconvinced after a downing street briefing that likened brexit to simply moving house. Sources were told leaving the eu will come with upfront costs but longterm benefits as Company Bosses were urged to prepare for the looming split, deal or no deal. Boris said whatever happens, change is coming to the u. K. The proposed travel bubble between hong kong and singapore could start with one flight a day, but it could change, depending on how the virus plays out. A start date is still uncertain, although both cities have said they hope it starts within weeks. Travelers will have to have been in the cities for 14 days before flying, and will need to take recognized virus tests. Thailand is welcoming its first foreign terrorist for seven months foreign tourist for several months. Tochinese visitors flew bangkok from shanghai, caring special visas requiring them to test negative twice for the virus and install a tracking app on mobile devices. They flew in as bangkok reported nine new infections. All of them imported. Global news, 24 hours a day, on air and at bloombergquint take, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell, this is bloomberg. Tom we are just checking in on the markets. In the mainland, the gays we saw yesterday, particularly in china. Losses of close to 1. 5 . In hong kong it is a different story. Gains close to. 9 . Hang seng index closing in for the 25,000 level. In terms of japan, the nikkei up. 5 . The markets closing for the lunch break. Futures in the u. S. Looking more positive. Up about. 5 . We have negotiations continuing. We have been talking about that around stimulus. There is some movement. It depends on whether the Senate Republicans will pass a separate bill that comes to the senate. In terms of individual stocks, we are looking at Cathay Pacific. Their Restructuring Plan, laying off more than 8000 workers. The stock is up more than 4 . China mobile, first positive earnings on the back of some 5g subscribers. The numbers are positive, in terms of what investors are looking at. Lucia biologics also one of the leaders. Also in the space, the fx space, the dollar index. Further losses, their weakest for the week. That continues to play out in the asian sector, in terms of multiple different asset classes. Of course, the offshore currency in China Remains in a strengthening trend. Currency. He offshore the highest level since 2018. A year differential between the chinese 10 year in u. S. Tenyear. Just talked about cafe, watching those shares after the airline announced sweeping restructuring that involves thousands of job cuts and the shuttering of their dragon brand. Is expected to cut the monthly cash ban by a quarter. Lets get more from james steel. Closure of cathay dragon, the brand. Is it enough . Cathays 8500 job cuts include unfilled positions. Even if we take the larger number, its only about 24 of the headcount, which is underwhelming, if you ask me. Cathay expects to operate well under 50 of its precovid capacity in 2021. I think the key part of the restructuring, and what the market might have missed, is the to the cabinges crew structure. No number given to that. But it will be linked to product ability. I think it will give them cost savings to benefit the margins in the longterm. It will lower cost structure. Jobs can always be hired back. Thats what we should be focusing on. Not just the number of cuts, in terms of the jobs. Even cathay suggested there is no way in 2021 we will get back to traffic levels we saw in 2019. Significantly lower. Is there also need to sell aircraft or scrap some of the older planes . Is there pressure to do that . I think the pressure will be there. It may not be economically feasible to do so. You cant really sell them in these times, because theres not much of a market for them. The value will be very low. You might need them in a few years, anyway. If you sell now, you will be selling low and buying high when demand comes back when you need them. The best you can do is try and return the lead aircraft the leases when they expire. But the bulk of their fleet, they would have to ground them until the demand recovers. Tom how meaningful will the travel bubble between hong kong and singapore be . Hopefully it is the start of many routes to come. With this one, it could reduce cash burn by about 6 . Cuts, savingnt job another 500 million. The cash burn can be brought down by 30 to 40 with these measures alone. Hopefully they are on the right track to eventually achieve a stable cash flow in the near future. Rishaad james, think you very much, james teo. Kongs joblessg rate. A 15 year high in september amid the continuing impact of the global pandemic. Unemployment and tourism. 14 services jumping to middle of the year this year. There are signs of hope. Hong kong announcing it would create the travel bubble. Theier, we caught up with executive Director Director of the hong kong tourist board on how it will help the Aviation Industry and the wider economy. My understanding is the government both governments are working on the details in the next couple of weeks. Atope that we can look december to start operating there. Visitorsrse, mainland have been key drivers of tourism in hong kong. Do you have any clarity in your discussions with officials in hong kong as to when there may be a full easing of travel restrictions between the mainland and hong kong . Somethink there will be time from reopening the border with the mainland. What we can see, Mainland China has been controlling and containing the virus very well. We are talking about a vast country with a huge population. Any opening up to them would be a big risk. So far, what we can see is macau, our neighboring city, is also just opened in the last two months. But that was done after 150 days of zero locally infectious cases. Hong kong, only very luckily in the last two weeks, the numbers have come down to one single digit. I think it will be quite a while before we can see that border limitedg, unless for a basis on these. But any wider opening, i think it will take time. David currently, when you arrive at the airport, people have to wait there. The very few people that come to hong kong have to wait an extremely long amount of time to wait for testing. What replaces quarantine . Is there a plan to speed up getting those tests, negative results for people to come out and enjoy the travel bubble . What are you guys doing to promote the concept and perception that hong kong is a safe and healthy place to go about . Thats the most important issues for any travelers, whether they are on a Central Business travel or leisure travel. The confidence, i think what we have our service around the world shows Everyone Wants to get out and travel. However, the confidence level, do they feel safe to travel . This particular arrangement of their travel bubble with singapore, the reason why its theyveant is because got to test through all of the measures in place, and how we can improve them. Going in a small step, seeing how they can improve. Theres a lot of concerns about these quarantine tests. Three times, four times, it will cost a lot of money. We are talking about 200 or 300 u. S. Dollars. Well,hings started to go and more people will be accepting to that, the price and costs will all come down. I know you are with Cathay Pacific for a long time, and you have seen the news on the airline. What were your initial thoughts when you heard about the restructuring . How does that affect it is hong kongs airline how does it affect them moving forward . Onlythay pacific is not the home carrier of hong kong, but also for this region, for asia. A brand name the hong kong people and asia are very proud of. Its very sad when we see this happening. Thisng around the world, pandemic is something that nobody can control. A lot of the global mega underrs are all significant pressure. Think for Cathay Pacific, it is not estate owned airline. It is not receiving state or government aid. Of course, they have been given loans by the government. Now it is just a matter of survival and existence. I feel very sad to see my colleagues having to leave the company. But i hope with this, they can at least abide until they can kong and to make hong asia recover again. Tom that was dane cheng speaking exclusively to us earlier. Up next, our equality feature this week hosts j. P. Morgan private banks camp she long kwong. The bank has achieved a 50 gender ratio at executive level. We will discuss the need for more female role models. This is bloomberg. J. P. Morgan private bank says its making a concerted effort to promote equality and diversity across its business, one of the driving forces behind that is Kam Shing Kwang, the ceo for asiapacific and vice chair of Greater China investment banking. In our latest segment of bloomberg equality, she told us theres a 5050 split in terms of male and female headcount, each with equal pay. I think theres been progress made. I still dont see where we should be it should be 50 70 . In j. P. Morgan, we are more fortunate. The teams i have in asia, asiapacific, the private banks, 5050 between male and female colleagues. However, if you look at the seniority, what you will find is its turnedlevel, more female. If you go higher, this year, we just made our offer to the class of 2021. We will have almost 60 of female analysts entering. What happens subsequently is you see more there is more attrition at the senior level. Even though we have made a lot of progress, if i look at the senior level, executive directors, managing directors, close to 40 . We still have some room to grow. Ultimately, you want it to be 5050. That is true diversity. It is critical you emphasized that the ratio goes down the higher you go. Theres a lot to unpack. I want to get started at the junior level. You mentioned campus recruiting. Is it a coincidence, a misconception that the Private Banking industry is really female dominated . Does it also influence people in school, more females to gravitate towards this part of finance . It is constant succession. If you want a desired outcome, you have to begin with a desire ratio. You have to be very conscious that when you are hiring, that your candidates will be balance. If you dont have 50 of candidates that are female, you will not have the desired outcome, which is 50 being female. But we made a very conscious decision attracting the female candidate to come to our recruitment presentation. There is no doubt that when they see there are women proceeding in the organization, they feel more inclined to apply for the jobs. That helps. Woman, there is a reality a woman often confronts with competing priorities. Family and career, at some point they feel they need to make a choice. When they are prioritizing objectives in life. We want to make sure that it is a very supportive environment and culture where they can balance their career and families. Im sure youve gotten this question, because the reality is there are more males the higher you go in the firm. Blindt think its a addition, blind promotion, if you had to pick between a male and female, all things equal, would it tilt you towards picking a female . Isat the end of the day, it absolutely. Shouldt capable person get the job. But i think the opportunity you need to be conscious to make that happen, we would go for the woman. There aref the time, meritocracys, perhaps the most capable person in that seat. The issue of pay gap comes into the picture. Compensation. Does it exist from the very beginning at the junior level . How does it change the higher up you go . We look at these numbers all the time. The entrylevel, when we hire analysts, it is the same. It is entry compensation. What happens is you look at the other numbers, as you have more women dropout from the senior levels, and you have more women taking the more entry jobs and basic jobs, the numbers will not appear favorable. They are deducting there is a pay gap, because you have far more junior women in the total population. The average number will not come up positively. Eventually, i think we are able to promote women into the senior level, we believe pay gaps and we are tracking the direction. We are not where we need to be. Theres still work to be done. But i think we are making Good Progress over the decades. ,om that was Kam Shing Kwang j. P. Morgan private bank ceo for asiapacific and vice chairman of Greater China investment banking. Coming up, General Motors revamps its iconic hummer brand, turning what was once an iconic gas guzzler electric. We hear from the president , next. This is bloomberg. General motors has unveiled its latest hummer model. Unlike earlier versions, this one is fully electric. We spoke to gms president about competition in the ev space, and the companys manufacturing capability and factory technology. Are engineers, manufacturing and product, along with our creative designers, really had a and the ultimate freedom to do a truck like this, which is very energizing inside the company. We did it in less then 24 months, which im very proud of the team. We have used our battery platform, so the battery pack has a 24 module pack to it. They will be made in ohio, at a facility we have as a joint venture with lg. That manufacturing joint venture will employ about 1100 people. We have put about 2. 3 billion into the facility. The truck will be made right here in detroit. Jobswill be about a 2200 fully operational. And another 2 billion into that facility, as well. We have invested heavily in the ltm platform for all of our vehicles, and this is the first one on the truck version of the platform. We are totally excited. This is really something that the whole company is excited to show the world and our consumers and customers. Very exciting time for us. Car and truck fans will be excited. Talk about the safety of a vehicle. When you talk about one thousand horsepower, the torque in a substantial vehicle, you can get into a lot of trouble really fast. Zero to 60 in three seconds . It does. Theres a lot of different modes capabilities. Ts, three different ones that offer different modes and motor packs. So it is really customizable. Its not only offroad. This is a very fun truck because of its adaptive air ride suspension. You can actually drop and raise the truck six inches. Theres a lot of Different Things you can use the truck for. First and foremost, i think the truck is beautiful. It is a fashion statement inside and out, but it is also highly entertaining. Theres a lot of safety dialed into this truck, a lot of countermeasures to keep people safe. And of course, a lot of fun. You mentioned price point. Can you give us some sense of the range of the price . We have three different specs. The first is 79,000. That is a two motor variant. Moving up to the second two motor variant, it is 89,000. Motorou go to the full 3 variant with all of the capability, we are up in the 100,000 type range, starting at 99,000. Those three price points tom that was g. M. s president on the electric hummer. We will get more on big tech coming up later. We will speak with her dena friedman. At 9 30at interview p. M. In hong kong. Lets check in with asian equities. Hang seng at the moment leading the charge in this part of the world. Moving over 1 to the upside. Benchmark in tokyo, the nikkei 225 up as it went into the lunch break. Ana reports it could see a loss of 5 billion. It was positive by about 3 . By the lunch break, it was down just about. 3 . Singapore moving to the upside. Most equity markets are in this part of the world. The malaysian board a quarter of a percent lower. This is bloomberg this is bloomberg. It is almost 11 00 a. M. In singapore. I am juliette saly. Welcome to Bloomberg Markets asia. I am rishaad salamat. Renewed optimism of a stimulus deal in washington. The white house lifts its offer while nancy pelosi says she is hopeful for agreement this week. Signs of life. A 16 gain in revenue last quarter. India may be reviving in after an unprecedented economic contraction. Casino operators in macau expected to post a loss in the third quarter, gaming revenue plunging 90 for six straight months. Liette stimulus talks, still in focus, but we are seeing u. S. Futures extend overnight gains. The msci asiapacific index, up by about 0. 5 , mixed movement in terms of tech players, but we are seeing the asian infotech sector rising. Shipmentsctor increasing 20 in the first day of the month, and all eyes on the onshore yuan, matching the offshore levels. We had a weaker than expected fix from the pboc. This will raise questions whether the pboc will act to slow some of these gains. Rishaad absolutely. Bangkok,hat open in protests taking place on the streets, antigovernment protests , and those groups asking for monarchy reform. Weve been seeing a lot of losses. At the moment, its at a sixmonth low. Newbank of thailands governor says they are looking at new measures to boost the economy is that faces a long and uneven road to recovery due to the coronavirus pandemic and the hit to tourism and other industries. Looking to the Indian Trading day, the nifty pointing to a modest gain at the start of the session. There you have it. Juliette lets get you updated on the first word news. Unemployment in hong kong has hit a 15year high amid a deep recession. The news comes as thousands of jobs were cut. 6000 jobia reported losses, but cap they says they 8500 jobs gone. U. K. Business leaders say they are unhappy and unconvinced after a downing street briefing. Sources say they were told that leaving the eu will come with upfront costs about longterm benefits as Company Bosses were ored to prepare for the deal no deal. Boris johnson joined the meeting, saying no matter what happens, change is coming. Thailand is welcoming its first Foreign Tourists in seven months, a ray of hope for a sector that is crucial to the economy. Came,nese visitors carrying special visas that required them to test negative twice. Bangkok reported nine new infections, all of them imported. The Saudi Crown Prince is facing a criminal lawsuit in the United States over the murder of jamal khashoggi. He and 20 others are named in filed by his fiancee and in attic of a c Group Advocacy group. Khashoggi was killed in 2018. Prince mohammed denies involvement but accepts responsibility as the kingdoms leader. Those were the first word headlines. Lets get to house Speaker Nancy Pelosi and treasury secretary steve mnuchin, they are moving closer to a new stimulus package. It is against this backdrop where Senate Majority leader Mitch Mcconnell reportedly advising the white house not to agree to it. Kathleen hays has the latest. Is making the House Speaker more optimistic . Andleen Steven Mnuchin nancy pelosi, the two lead negotiators for the republicans and democrats, have been talking. They continue to talk. According to nancy pelosi, even before she went into her afternoon meeting with Steven Mnuchin, when she spoke with Bloomberg Television, she said, there are more things that need to be done, but things are looking up. We all want to get an agreement because people need it, and its urgent. Our economy needs it. We had one bump in the road with the Appropriations Committee. Im not sure they are going to be ready, but i hope they are. I am optimistic. Nancy after this phone meeting overseesen mnuchin, he official business. That is why they had to speak over phone. Her spokesman said that these talks are providing the clarity, the ground rules of what is going on as an agreement appears to move closer. Mark meadows, white house chief of staff, confirming on cnbc this afternoon that the deal, the offer from the white house is up to 1. 88 trillion. Its very close to the. 2 trillion. 2 he said, we still have a long way to go. One of the issues is money for state and local governments. Democrats say there is nowhere near enough. Weve got to stop that with more money. Republican say, we dont want to throw good money after bad in states where they dont manage their finances, and nancy pelosi is preparing a counter offer on a big deal for republicans, part of a deal that would give u. S. Businesses some protection from any suits they might get related to the virus. We will see what happens tomorrow. Steps are being taken. Juliette a waiting game, but still the republicans, opposing. His stimulus bill here. Are getting louder what is mcconnell saying . Nancy Mitch Mcconnell, very important what he says. He said this afternoon he will bring a president ially supported bill to the senate floor once it passes the house. However, he was reported by several newspapers, he is advising the white house not to strike a deal before the election. This is switching back against Donald Trumps pounding of the table. I want even more than the democrats, he says. Republicans in the senate may not agree. Ifublicans are saying, what we have to oppose donald trump toa vote, or what if we have deify or displease our conservative base that doesnt want to hold up our Government Spending . The vote on amy barrett to be confirmed for the Supreme Court of the United States is supposed to be next week. Many are saying, that should be our number one issue. It remains to be seen what happens now. Importantly, at the end of last week, some democrats were saying publicly that nancy pelosi should get a bill on the table, get it passed in the house, put the ball in Mitch Mcconnells court. Make it more of a national issue. Why is the stimulus being passed . We will see how soon Mitch Mcconnell gets that ball in his court and what he does with it. Economics andal policy editor Kathleen Hays keeping us updated. Still ahead, india looking to start longawaited discussions for a trade deal with taiwan. Rishaad next, ben powell from blackrock telling us why the risks of a fading u. S. Fiscal stimulus deal threatened to derail the markets strong run. This is bloomberg. Juliette asian stocks are rising along with u. S. Futures amid optimism about progress on stimulus talks. Our next guest is neutral on u. S. Equities and says the risks of fading fiscal stimulus are threatening to derail the market. Powell,ring in ben strategist at blackrock. Why this neutral call . We do have a lot of risks. We have the vaccine not where we thought it would be in this cycle. On the other hand, you would think if we see a blue sweep, we would see more fiscal stimulus, which would be positive. Ben i think thats right. Within our broadly prorisk credit, weerweight are neutral u. S. Equities. Why is that . A couple things. One is the potential for the fiscal impulse to fade, i areose, if the negotiations likely to get more complicated the closer we get to the election, and that is what has happened. Econdly, we are getting close thats the longest time weve had a new high going back to march. Ok as theal view is market thinks about the election and the other busy events in the u. S. At the moment. Juliette juliette i know you cant see it, but this chart showing european and u. K. Equities have been left behind. You are overweight in european equities. What is behind that call given that we are seeing a third wave of infections coming through in europe . Ben i think thats right. Wasoverweight europe call predicated on two main facts. A better virus experience, at least that was the case at the time. As that becomes less clear, especially as the virus is looking more challenging in europe and the u. K. , if that can continue to evolve, we are going to have to be careful about the europe view, the part of our view that the virus is going to look better. Its less clear going forward. Juliette every day, we are being inundated with calls about what a potential blue sweep would mean. What does this mean for the treasury market . Is it as simple as saying more fiscal spending does lead to high yields . The key election is going to be the senate. I think we are reluctant to believe polls, but i think we would agree that it looks like there is the potential for a biden wipeout. The difference between a biden wipeout with a Republican Senate versus a democratic senate, that difference is likely to be extremely meaningful. 3 to sweep could create 4 of incremental fiscal thrust each year for the next three or four years, and terms of supply that would need to come to a blue it does seem sweep would have a different implication for the supply then a mixed government outcome almost regardless of who is in the white house. Rishaad when you look at the juice, everybody is after a little bit of yield, and you are very overweight highyield. Isnt that dangerous . That isu think overdone, that pessimism . We can see how these premiums have been falling. Tell us about where you are looking for this highyield. Is the first point developed to government bonds. The first point is developed government market bonds dont give you what they used to in terms of yield diversification. Our framing at the blackrock is to haveinstitute fewer of them and more other assets as we try to solve the question of income. As part of that highyield, we think that is an important part of the solution. Even with the move we have seen, we think there is more to go, if you will, and these default rates are inherently a bit riskier. Rishaad rishaad what is your take away from the data we have been getting out of the u. S. And globally . The numbers out of china, recovery. A vshaped ben we are broadly in the more constructive camp. We believe in an activity restart. Weve seen the virus evolution in europe and other parts of the world. In china, they have fully recouped the lost gdp in the first half, gdp now back to an alltime high. H1b astonishing statistics over the last couple of weeks is the reality that 650 Million People traveled during the golden week holiday, and that is not really an economic statistic, but it speaks to a regaining of confidence among the people to get back out there to restaurants, cinemas, and traveling to families. The recovery is not complete, but i think that is an encouraging sign in terms of the degree of normalization in china. Juliette im sure we are waiting for this Hong Kong Singapore bubble to open up. Highs, howly 2018 long does this last before some kind of intervention . Ben theres a problem of too much strength across the board, and in order to let some of that strength go, as it were, it seems the strength and currency can continue. They might accidentally create a positive housing market, which could be disharmonious. Many people came into this year it seems chinas currency can continue to appreciate at a twoyear high, and so far, it hasnt caused too many challenges. Thought the economics of capital inflows driven by the large interestrate differential, china versus the rest of the world, i would have thought basic economics wouldve seen currency strength in china to continue. Stuff, then powell from blackrock. Coming up, the u. S. Accusing google of abusing its monopoly, the most significant antitrust action in decades. s will hear from google policy director adam cohen. This is bloomberg. Rishaad google facing one of the most significant antitrust actions against an American Company in decades. The u. S. Department is suing the topany for pursuing deals lock out competition, including an agreement with apple to make the Search Engine the default on iphones. Adam cohen spoke to bloomberg about the lawsuit. We think this case is extremely flawed and risks harming u. S. Consumers. We compete in the marketplace. Our sector is marked by prices that are free or falling and rapid innovation, and those are hallmarks of a competitive industry. Theoogle has pointed to ability for folks to download whatever app they want easily, but if that is the case, why pay billions of dollars to apple to be the default or mobile carriers to distribute search if it so easy to change the default . Are using google because they choose to, not because they are forced to. As an example of this, when you look at bing, the number one search term is google. What we are doing in terms of distribution of our service is no different than when you go to the supermarket and see boxes of cereal at eye level, or coke has a promotion at the end of an aisle. Tos is so we can continue promote our products and services. Emily how confident are you in googles defense . Are you confident enough you can win this in court . Adam if you look at our sector, prices are free and falling. There is rapid innovation, and theres lots of choice. You described a scenario where people might struggle to find turn it gives. This isnt the 1990s when you and buyet in your car software. Like the ones that are preinstalled, you can download them pretty easily. Most of the most popular applications, snapchat, others, they werent popular because they were preinstalled. Consumers found them, downloaded them, and now consumers are using them. Juliette that was adam cohen speaking to bloomberg technologys emily chang. Two of chinas Top Tech Companies are being banned from 5g networks in europe. They are being told their Technology Must be removed from existing swedish infrastructure what25 because of stockholm says is the influence exerted by chinas oneparty state over its private sector. Washington has described huawei as the backbone of the communist partys surveillance efforts. Netflix slumped after adding fewer new subscribers than expected and issuing a forecast that missed projections. It attracted 2. 2 new viewers through september, one million below analyst predictions and under its own more conservative outlook. Netflix says it expects to see 6 million new subscribers in the current quarter, below the street view. Time for morning calls. Lets get over to stephanie camerin whos been looking at what is happening out there. Cathay shares jumping. What are people saying . Says a key overhang thebeen removed for cathay, timing is unknown, and he also questions what it may look like given the Hong Kong Express will be taking on some of dragons routes, which is pending regulatory approval. Show, our guest fielded a question over what this means for smaller brands, and she cautioned there may be x given itsor c forecasts are too optimistic. Over at you will be, they are more optimistic raising cathays call to buy. Juliette japanese home centers stocks have gained on some m a profit. What is the story . The furniture retailer notori making a viable offer to dcm. They are questioning whether this would be successful given they have already agreed to dcms offer to. Either better buyer given that it can push for the price that it wants, this after a year that has seen a bright spot for japans hardware chain operators, that has helped drive consolidation. Another m a deal may be in the back. In the bag. Rishaad lets now get to what we have in markets as shanghai and shenzhen go on a lunch break. We have a negative story at the moment. Thats a look at the Current Conditions in shanghai. The shanghai composite gives up 4 10 of 1 in the session thus far. Elsewhere, asian stocks are higher. Inhaps a breakthrough stimulus talks in the u. S. In the u. S. Rishaad 8 59 in mumbai at the moment. It is 11 29 in hong kong. A foggy start to the day. See aestion we will positive start to the session. If it does, we would have four Straight Days of advances for equities in india. Yesterday, the nifty did manage to just close out the session and positive terrain. Lets have a look at some of the first word headlines. Hopes rising on a stimulus deal in washington, the white house raising its offer, and speaker saying sheame is hopeful this week. Pelosi telling bloomberg that more work is needed to overcome spending issues, but progress is being made, and a bill is being drafted. We all want to get an agreement because people need it. One little bump in the road with the Appropriations Committee im not sure they are going to be ready, but lets hope they are. We are starting to write the bill. I am optimistic. The New York Times stories aboutnew a previously unknown bank account he reportedly holds in china. The times says it is controlled by Trump International hotel management. The u. K. Government is set to abandon plans for its threeyour spending review. It is a setback for Boris Johnsons plans to map out his priorities for a postpandemic world. Has told him a stopgap plan is needed because of increasing uncertainty. The treasury declined to comment, but the ft said it has been in intense talks with downing street over the last week. Thats a look at your first word headlines. Juliette we are just getting some breaking news across the terminal that huawei and chinese firms are said to be seeking arm, on nvidias theoretically threatening its status as a neutral party in the chip industry. Chinas concern is the deal will become another pawn in the u. S. And chinese struggle for tech supremacy. Billion nvidia arm deal hanging on a u. S. Vote, but it could be threatened by these calls from a huawei and chinese firms to be seeking curbs on the deal. We have seen softbank erasing gains. On monday, softbank shares neared 20year highs, so softbank coming under a little bit of pressure. Lets take a look at broader markets here, as well. We have japan coming back online, and having a look at what is happening in the nikkei, we are seeing moves to the upside. It is a pretty risk on session moving along with what we have futures, hopes for stimulus talks. Weve seen big moves in cathay on the job restructuring. Look at currencies, too. Its all about the yuan, both the on and offshore. July of 2018 at highs. From asie, recovering threeweek low. It was the worst performing g10 yesterday, and the taiwan dollar, also moving a little higher. It seems the central bank is commenting on its strength, saying it could trade stronger than 30 a dollar in the near term. Rishaad lets have a look at india as it looks to start discussing a trade deal with taiwan. Support is growing in indias government to explore the possibility as india and taiwan see relations with beijing worsening. In our guest. Sana, thank you for joining us. Not go downt will very well in beijing. How angry do you think they will likely be, and what will they do about it . To see think we need that it is mutually beneficial, and it would be a great deal for taiwan given the one china policy. China really cannot take this. Might go ahead and have negotiations with taiwan. We saw a statement from a chinese parliamentary spokesperson yesterday. We need to think about what china is going to do about its cooperation with taiwan and look for something that is mutually beneficial for both of them. I think it is important we do it now because this is an apt time for taiwan and india to do Something Like this, and taiwan is gaining a lot of popularity. Rishaad they may need one another to some extent. Someinly, india would need of the technology that taiwan does produce, but what it represents is a growing antibeijing front in this part of the world. I think it has been called a milk tea alliance. Tell us about it. Its not just taiwan and india, which have been facing chinas aggression. Look at hong kong. Look at the south china sea. Look everywhere. There is a need for likeminded countries to have a concerted policy to counter the china challenge. That is what this is all about. Its important that countries like taiwan and india and the and seek to each other how they can face chinas aggression. Juliette i was going to ask that, what it could mean for other countries. You mentioned australia, and that is one country that has seen its relations deteriorate. Sana australia is one country that hasnt been vocal about think in general [indiscernible] all of these countries are just ensureto find a way to stability in the region. You. Ad thank weve got the japanese prime the moment inat jakarta. He was in hanoi 24 hours ago, and hes been making statements on what is taking place with regards to threats to south korea. Ins made these remarks jakarta, that any liquidation of japanese assets would be serious, that against this backdrop of growing tensions between tokyo and seoul. Coming up, a display of resilience despite the economic slump in india. Marketshan expected with ruble markets playing a bigger role. More on the way. This is bloomberg. Rishaad u. S. Fashion chain gap says it is reviewing options for its business in europe and could close all of its stores in the united kingdom. The San Francisco company says the closures could come in the Second Quarter of next year, and it is looking at its distribution in europe. Swiss watch exports declined last month. Shipments fell by around 1. 75 billion dollars as the industry becomes more reliant on demand from china. That country was the only bright spot with exports to the mainland surging by 80 as they fell everywhere else in the world. Juliette asias biggest maker of personal Care Products saw a doubledigit jump in sales. Is this a sign of revival . Lets bring in our correspondent in mumbai. Have expected unit levers revenue would jump for the first the most since 2011 . Early to say that indias demand is back on track, but the signs are positive. The Company Sells its products to some 8 million outlets in pandemic, amid this its digital footprint has grown. Yesterday, the company said to jump in sales was because of demand in india, and thats because farming has been an outlier during the early months of the pandemic. Crops helped boost plantations, as well. Some sections have started slowing, but indian authorities are worried about the festival season that starts soon. A surge of cases would impact demand and derail the green shoots that we are seeing now. Rishaad the companys share price has had an awful time of it, massively underperforming the broader market. After all, this is a consumer staple, and its below where its peers are in terms of valuation. Thats right. Prime minister Narendra Modi imposed the worlds biggest lockdown on short notice. That compared with a 52 surge shares, they, the trade at 59 times the 12month earnings. Analysts expect a lot to depend on the trajectory of the infection. If all goes well, analysts such as hsbc expect a 33 upside. A lot depends on how the pandemic shapes up here in india. Give me an idea of overall sentiment there at the moment in the indian market. We had a guest on earlier saying that if you took reliance out of the equation, we would see a fall for equities in india overall since the start of the year. Reliance has been the star performer. Others have done quite well in this pandemic. You are right. She is right in saying if it wasnt for reliance, the Market Performance wouldnt have been as good as this. That is absolutely correct. Rishaad thank you very much indeed. Theing of that, just now second come Indian Markets have got going for their middle of the trading week this wednesday. We should be on the upside given where nifty contracts were. Indeed, the banks doing pretty well here, and bloomberg had a story a bit earlier saying is seeing its financials emerging from the darkness, as it were. They may be seeing brighter days. In theal recovery economy, including the industrys chief evaluations, perhaps helping fuel a rally that many analysts believe has legs to run. The nifty bank index, helping to lift the overall market. Chinas data and ondemand retail and Delivery Platform backed by jd, and walmart are seeing shares surge over 100 since its debut. Pandemic as a growth accelerator. The founder and ceo spoke with Tom Mackenzie in beijing. Knows the covid served as an accelerator for our business. As you can imagine, people tend to spend more time at home and visit restaurants less frequently, and people want to cook at home. Seen au say you have strong pickup in demand as a result of the pandemic. How sticky is that increased demand, or does it ease off as people get back to a normal sense of life . I think its an accelerator, but even before this, we had been growing fast for multiple years already. There are a few key reasons behind this. We are generating values for retailers, brand owners, and for end consumers. Consider this the greatest driver for their business. Ton there a lot of focus on the consumer. What is your sense of how strong the consumer is now . Is it starting to rebound, and will it be sustainable . Cities the lower tier have been growing really fast. Historically, most of the people doing business are focusing on shanghai or beijing, but now we are covering thousands of cities. The growth from the lower tier cities is far ahead of the tier one cities. People there are enjoying a much and theiral cost, living costs are relatively low, so people want to spend more. The buying power from the lower tier cities is really a major push for the entire retail. Om let me shift the focus to competition. It is a competitive spend this space. How do you make sure you build a moat around the business . What do you bring to the ecommerce sector that helps you stand out and keep that competition at bay . We have unique positioning. We only help our retailers. We dont compete with them. We dont take inventory in any way. We are probably the only platform in china doing this. Other players like alibaba, each one of them, they have huge first party business. They are retailers. Tom what are your expansion plans . Hilip first is the geographic expansion. Lower tier cities are really important. There are thousands of cities we need to do well and work to do well, so that is number one. The second is category expansion. We start off with the supermarket because the supermarket is the largest sector of Offline Business and the most difficult one. Crm, thetory, the promotion, there are a lot of things to deal with. Is the timeframe for making this business profitable, and how much pressure are you under from your investors to turn things around and bring you back to the black . Philip we have been showing a solid track record in terms of improving our profitability over the last few years. Reports,n see from our weve been improving very quickly. We are not getting much pressure from investors around this at all. At the same time, we believe as trends, theg huge three stages of ecommerce, time tocommerce, its really grow the business. Juliette we are seeing softbank extend theokyo losses. We are hearing that huawei and chinese firms are said to be seeking curbs on nvidias arm deal. We will have more on that shortly. This is bloomberg. Rishaad Chinese Tech Company huawei is said to be lobbying the government to reject nvidia is acquisition of arm. This comes as the company is concerned nvidia would force arm to cut off its access. Can china actually derail this deal . Like aainly, it looks possibility given that huawei and other chinese Tech Companies are protesting. Beijing will take a look at whether this deal is in the countrys best interest. Is the largest purchaser of semiconductors globally, china has the right to review the arm deal, and there is concern that beijing has cast a skeptical eye on it. The u. S. Has been going after Companies Like huawei and other chinese tech giants, and beijing will resist any deal that gives the u. S. Further leverage, and at the least, they will seek to impose some conditions or extract some kind of guarantee to protect them. In this arm is vital industry, isnt it . Absolutely. Arm may not be very wellknown, but its technology is at the heart of most modern electronics, ranging from mobile phones to home appliancesm theres an estimate that arms china. N 90 of chips in china is still heavily reliant on Foreign Technology and equipment, and right now, arm as an independent company is one of the few remaining Companies Still able to supply to huawei. Vdias purchase of arm will give the u. S. Control. Juliette what do you think that means is going to be next for arm and this deal . Rishaad the next step is nvidia will have to submit formal approval requests to china and other countries at the u. K. E. U. , and u. S. The china review is expected to be one of the trickiest to navigate, and it becomes a waiting game. Even though it may take up to 18 months for approval, china has a history of dragging its feet and not being very transparent. A qualcomm purchase had to be called off because china did not a issue did not issue an approval for 21 months. What could affect the outcome is the u. S. Elections. Thank you so much, our Asian Technology editor. Just coming back to markets, in hong kong, we are headed for the lunch break, but the biggest coming down cathay, to this costcutting program. Theyve announced 5000 hong kong jobs will go, 8500 positions in total. It amounts to 24 of cathays headcount. Its one of the largest hits in the Aviation Industry globally. In fact, these job losses have been outnumbered by only a handful of other carriers like lufthansa, american airlines, and delta. They are hoping ultimately that this travel bubble between hong kong and singapore could alleviate some of the pain. Juliette absolutely. On my way to visit you, as soon as that happens, we saw that spike coming through on the back of that news, the first time we would see these financial hubs open up to each other in seven months, but we are hearing it might be one flight a day between hong kong and singapore. That is it from Bloomberg Markets asia. Manus joins us from dubai. This is bloomberg. I sent your new prescription to the pharmacy. Any idea how much it will cost . You have a choice. Insurance or goodrx. I have insurance. Insurance is not what it used to be. People struggle to get their prescription covered and prices keep rising. I recommend goodrx. You get free coupons to save on your prescriptions. [narrator] compare prices to get the best discounts. Goodrx, smart. [narrator] stop paying too much for your prescriptions. Download the free app today. The following is a paid program. The opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. The following is a paid presentation brought to you by rare collectibles tv. Announcer John Fitzgerald kennedy served as the 35th president of the United States from january 1961 until 1963. Jfk brought america hope, strength, and the vision for a brighter future. President kennedy and so, my fellow americans, ask not what your country can do for you, ask what you can do for your country