There is a tumble on the growing u. S. Industries. Decade, asore than a the pandemic rages on. It is also slashing its final dividends. Big tech is a warned that it may lose Legal Protection over user content. Lawmakers are accusing tech shery lets get you started with a quick check of the markets. We are saying u. S. Futures, online higher at the moment. This is after u. S. Stocks tumbled by the most since june. Check is leading all of the sectors. Tech is not really acting like a haven today. Lets see how things are shaping up for the asian markets. Heres Sophie Kamaruddin in hong kong. Sophie after that steep drop that we saw for u. S. And european shares, expect losses to continue. In asia. It is the busiest day of earnings for china. In australia, we have all of these futures falling to the lowest since october 5. This is after a report of a 40 a 42 slump in profit. S may be facing a tumble. Bullion fell. Is picking up steam. We may see some slight tweaks to its quarterly forecast. We also have the ecb on top, expecting to hold. The euro under pressure as a virus cases rise in europe. The euro is falling. We are also seeing uncertainty around the u. S. Election. Paul thank you, sophie. There may be some clear signs that according to the Bloomberg Intelligence team, joining us now is rtp equity strategist gina martin adams. What is happening in the transition . Niall ini think that we have been the midst of consolidation since Early September driven by a number of factors that have only momentum. There has been a loss of tech leadership. This is justified by a loss of earnings leadership. You really should be thinking about better positioning and value oriented sickle cells. There has been a stop of an improvement around the last six months. I think that the market is a blue waveprice in taking over washington. If joe biden wins, the senate could maintain and republican hands. If we have a blue wave, where potential for a lot of policy change, including tax reform. This could lead to a lot of potential of reg terry forms. A lot of Growth Stocks have worked in the market. I think finally, i think the market is concerned that in this air pocket between the election and potential changing of the guard, you do not have any fiscal support. The lack of fiscal support is somewhat concerning, that we might see an acceleration to the downside in the macro numbers in the First Time Since the spring. Shery no wonder that we are seeing so much volatility. The vixpens when reaches these levels . Gina it is very rare to see you at these levels and to see a modest correction. Usually you only need to get at a fixed of 30. I do think that the context is worth mentioning, because coming off the extreme vix spike that we saw early in the spring, it takes a volatility in the market little bit longer to normalize than it does price. We saw this in 2000 nine as well. The market sorta recovered rapidly and it did take a full year for volatility to sort of normalize. I think that we are in the midst of that longterm trend. See the vix spike so quickly and roughly 80 selloff and spikes in stocks, it suggests that we are in it period are pretty high volatility. It would suggest that investors are anticipating this volatility while, forever in a perhaps thinking about the resolution and no resolution the following the election. Maybe on november 3, we will not know qb next president is. You typically see it at price through the volatility contracts. Shery it seems that we are moving away from those indiscriminate rallies that we saw since march. With the tech hearing and the senate, with more good toward concern, is this a new normal for tech when investors become more discerning of the names . Is a i think that this combination of factors that are really impacting tech. The first is, we got to a point valuationssector a were above longterm average. It was really clear that tech stocks were overvalued. Really ass value was reflection of the qualities of tech through the first year the first half of the year producing strong. That dynamic shifted a lot. As of the third quarter, tech eminis should start to under pace index earnings grows. This idea that tech sector earnings are significantly more defensible or more stable than the rest of the market. That is starting to come into question. In particular, how much do you want to pay in excess of average when youre below that is something that investors are starting to query. You have a combination of the potential regulatory outlet, or believed to be a sentiment overhang. We appear to be moving into an environment where lawmakers are really going to consider the size and the power of these companies, especially if we have a blue wave take over washington. And the tax environment, and i think that this is an under discussed abundant of the tech shortfall. When you have an extreme rise in multinational taxation, lawmakers are going to make an effort to tax overseas cash and overseas revenues. And toably impacts tech a lesser extent, health care, more than other sectors. These are the Growth Stocks that have dominated most of the market gains since 2009. We might be added precedents i would pretty big shift here. Shery thank you so much, gina martin adams. It can be more about the markets app and mobile device. Lets get over to Karina Mitchell with the first word headlines. Thank you. Big tech is being warned that its control over content should be removed. Google and facebook and were growth by a Congressional Republicans asked who put them in charge to monitor what gets posted . In other news, european leaders virus curbs. P germany and france are going into National Lockdown again, and the u. K. Is considering one, as they and spain report record numbers. Diseaseu. S. Infections expert, dr. Anthony t is warning that a vaccine will not be ready until january at the earliest. U. S. China relations are set to worsen further. An alleged operation on american soil. The doj says that the asians were carrying out operation fox hunt, this is to check on fugitives and bring them back. Five of these individuals were arrested across the country this morning. The rest, we believe are in china. Since 2014, at the direction of chinae general secretary, has been engaged in a Global Operation known as fox hunts, and china describes fox as an international, Anticorruption Campaign in which it seeks to locate legitimate fugitives around the world to bring the back for trial in china. Global news, powered by more than i am Karina Mitchell, this is bloomberg. Paul thank you, karina. Still to come, Niall Ferguson joins us. Niall said there are nine reasons that trump may still win the presidency. Samsungs reporting with us later. Be a generation of a meaningful property. I meaningful profit this is bloomberg. Thee do not really know how pandemic will unfold, but what we can say is that we think the margins are worsening. I do not think that it is a kneejerk reaction. We know what it means to the economy of countries or sections of country start lockdown again surprising. I think that Portfolio Managers that i am talking to want to get the election behind them and focus on how bad the covid news is going to be. So much hedges on the election outcome, because you have very different policy priorities coming from two wildly different candidates. We are not seeing the support for fiscal stimulus from the government. We know what that means for the markets and the economy. The prospects are that we are not going to get anything essential until after the inauguration, which is many months away. Right now, all of the question marks are in front of us and not behind us. Shery the u. S. Election has kept markets on as for my. Now we are days away from the election. We discussed this with Niall Ferguson, a senior fellow at stanford university. It is always great to have you on. I can just say for sure that i am not the other one holding their breath on november 3, given what happened on given what happened in between 16. How do you expect it to play out. Niall most people who study opinion polls think that this is all over. Donald trump is in worse position right now in the National Polls than john mccain in 2008. He is in a kind of similar position, maybe worse than George H W Bush when he failed to secure reelection in 1992. You have the pundits that are saying that there is a 12 chance that trump could pull this off. Areense is that many people slipping into paths of thinking that led them astray four years ago. They are imagining that this election is going to be like most elections that we have had in our lifetime. It really is not. I have a halloween nightmare for the joe biden campaign. 1948, when back to everybody had written harry truman off and were convinced that the opponent would win the election. , andprinted the front page it turned out in the last few days, truman had not only narrow the gap, he actually won the election. There has to be a higher than 12 chance that donald trump could do this in such a crazy year. Theres obviously a big increase in turnout, and that is extremely dangerous in my view to base your view on the standard model base of opinion polls. 12 republicans say that they are not telling the truth to telephone posers prayer i do not think that we should write donald trump off yet. Shery we all were members very well the picture at harry Truman Holding the newspaper. Tell me a little more about donald trump himself and what he has made for america. You say that the halflife of populism is short anyway. Has america had its cathartic moment are ready with President Trump . Niall i think that is why the base case as to be that he is a one term president. Ways, this populist experiment has gone horribly wrong this year. Think of it, not only have we had a pandemic, and you cannot claim that donald trump has handled covid19 well. As a consequence of lockdown, the u. S. Economy has suffered its sharpest recession and deep lines. Even though the world bank and the imf are upgrading their forecast, it is still negative rates it is still negative territory. Who gets reelected in a condition that we are seeing . It is a dangerous position to apply typical models to this. This is where the 1948 analogy comes in, this lastminute surge of support in places like florida, where he is not in bad shape. You are saying this also in other states, georgia and arizona, i think that the thing that is critical about populism, is that it may not be able to deliver the economic miracle that was promised four years ago. We are supposed to have 4 growth, rather than 4 . Fiercely loyals support in the republican base. When we see these very high turnout numbers with a lot of firsttime voters, do not assume that they are all showing up for joe biden and kamala harris. Whitemay be significant workingclass turnout for donald trump. That is why i think is dangerous to call this election with confidence. There is a scenario where this is all over and trump loses florida and key battleground states. I do not say that this is a low probability scenario. I think that it is conceivable. We could be one of those year 2000 situations where it is contested, and maybe we end up with no clear result in other states. I do not think that we should dismiss out of hand that donald trump poses offered this is an extraordinary election in an extraordinary year. Many americans do not blame him for the virus, they blame china. This is another sample of how it could produce a surprise result. Shery i want to talk about trumps legacy. The Historical Impact of trump lies in the fact that he changed the course of u. S. Policy toward china, and directed the American Public to the different mind regarding china, including the democrats. Was it right for this admission to take the hard line with beijing . Ive been saying for quite some time that we are in cold war ii in the it took the United States a wild to wake up to the threat that china was posing. There have been a live different domains and i think that what is fascinating about the Trump Administration is there for all of his character quirks and flaws and all of that controversy and turmoil of his presidency, donald trump changed the direction of the american grand strategy and ended what had become under the obama administration, kind of the acceptance of chinas rise. He established and a whole range of ways, with a trade war and in challenge to chinas rise. Not in terms of reducing the trade deficit, he is not done that. But in terms of changing minds about whether the United States should just accept chinas rise as never. Looking at the opinion polling, attitudes toward china have become far more unfavorable in the last four years. It is not just in the United States. More more people in europe and elsewhere, spirit like an india, agree with trumps view. Piece of theant Trump Administration that he has woken american up and maybe even the western world and looking at china different. All, you mentioned some of those challenges that u. S. Has had with china. Is there and another one bring with entech . More commentsing around currency and visual payments. You had written before about the challenges that china faces with u. S. Dollar dominance . How great of a threat is that, and how do you see the u. S. Reacting . Niall ive said for some time that the United States risks becoming placement and conservative about financial innovation. They are the current state of affairs, or the dollar is the dominant currency, not only for bank reserves, also three trade. If the u. S. Ways to apply financial sanctions, it can do of bankgh the system transfer. But china in the last few years has been building up payment platforms beyond its own borders in ways that i think pose a potential challenge to u. S. Financial dominance. These payment platforms are on a much larger scale than anything that came out of silicon valley. Accelerated the development of its digital sigil bank currency. China is trying, i think deliberately be more financially independent. To exploit big tech. Ain ing about blockch ways that are different than what we usually hurt usually hear. In the long run, there is potential challenge there. All over the world, it seems to be more and more that transactions are going to be moving to chinese platforms. Small transactions at first. More and more payments by chinese tourists, and when tourism receives, it will be on alipay boards wechat equipment. If you do not lead in financial innovation, you will not be the number one power for long. That seems to be one of the lessons, and that is one of the central lessons of my book. Paul while you were speaking there, we were seeing pictures of the company that is about to list with the ipo. What are the broader Global Implications around this, and how does the u. S. Counter that . What does the u. S. Have that could potentially compete . Niall that is a great question. What are the most striking features of the ipo will be massive i months in america many that will go into. Wall street does not seem to have gotten the memo about cold war ii. It seems to still live in the age where trident and america were economically fused. This is one of the things that i think that the Chinese Government has been quite shrewd about, and i expect that we will hear more about. Opening up chinas Financial Markets to wall street and the deed the rest of the world, not only to attract money and equities, also to attract into attorneys bonds, just been where the hot tips of 2020. There is a fascinating tension in the world today between geopolitics, which seems to point in the direction of cold war ii, and financial transactions, financial flows, which suggest ongoing chin america. I think that will be resolved in the coming year. One of these narratives will be wrong. Escalate, or we will end up with some kind of between the superpowers. Ant shares are going to look very smart. Paul how much longer do you see the u. S. Dollar remaining the worlds reserve currency . Niall that is a very difficult question to answer. Historically, you can stay reserved for a very long time, even after you have passed through heat. British pound lived on. Even after the United States had emerged as a substantial large economy compared to the u. K. Economy, in the case of brixon, there was an Obvious Success in the u. S. Dollar gradually driving the currency to secondclass status. It is not so obvious that anybody could displace the dollar. As i said, if the Financial Technology moves on so that less and less transactions are really through the system, and we no longer do transactions across the board for payments, i think the dollar will see an erosion. I would not expect somebody to take the place of the dollar, the way that the pound was displaced by the u. S. Dollar. I believes that the tectonic plates of financial shifts, as a result of technological in addition, and that the u. S. Is lagging behind here. Paul Niall Ferguson, senior fellow at stanford university. Columnists,inion thank you so much for joining us today with your analysis. We are seeing pictures of the dallas reserve federal bank. Moderation of federal perspectives. The event is being hosted by the dallas fed. We will let you know if there is a news coming out of there. We heard earlier from forward new york head and president. He is warning that the u. S. Federal reserve is lending running low on ammo. You can continue to watch that and bloomberg subscribers can log into the terminal and watching on live go. You can find diary entries there as well. This is bloomberg. You are watching daybreak australia. I i am Karina Mitchell. An agreement could be reached early next month. We are told the two sides are close to an accord on state aid. London and brussels remain far apart on several areas coming what they term a level playing field. The Trump Administration has upended this election of a new leader for the wto by vetoing one of the two remaining candidates. Washington will not join the the formerehind nigerian finance minister because it supports the rival. They feel he is too close to protrade internationalism. On theidentified a leak International Space station. Teams are planning a permanent repair. Nasa said they were never in any danger. The iss is regularly threatened by flying space junk that has avoided any serious incident so far. Global news, 24 hours a day, onair, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Jerry. Shery. Cases global coronavirus intensified. Linda over germany, france, and the u. K. Top Infectious Diseases expert Anthony Fauci sees january as the earliest realistic date for a vaccine while he feels a government deal for an experimental treatment. Michelle cortez is on the line. Lets start with europe. Record daily infections. How are countries like france and germany dealing with this . They are going through the lockdown mode again. They are closing bars and restaurants. They are taking measures to try and get the virus under control. Its interesting that they are doing it a little bit differently. They are keeping schools open and making it possible for kids to continue to go in person, which really makes sense when we think about the virus has really being driven by older people. 21 and older. Balanceare trying to keeping some things open while getting the virus under control. The u. S. E u. S. Is at a Pivotal Point. Looks likely aggressive measures will be needed, right . Michelle we are seeing the same situation in the u. S. Just lagging by a couple of weeks from whats happening in europe. The numbers are skyrocketing. Dr. Fauci said today that we are at a Pivotal Point and we are not starting from a good position. We had expected those cases to come down much lower in the summer than they did and now we are increasing at an x financial pace. We dont do things to get it under control, we will end up having to have some type of stronger measures. Nd she was not interested we might have to have a lockdown, but so far in europe, thats what they are taking. A bit morefauci realistic when it comes to the vaccine timeline. Give us a little bit of what he said plus the latest on therapies. Going to bes taking longer to get a vaccine in the u. S. Than anyone had hoped. All of 2020 is in the rearview mirror. Dr. Fauci said it will not be until december before we will even get a look at the data from these trials to see if the vaccine is helpful or not. At that point, the companies, if they are successful, could apply for an emergency authorization. It would take until january or even later to get access and then of course, you have to do the distribution and immunizations. Bad news that is not going to be until well into the winter before we get any vaccines. On the therapeutic side, good news. Ageneron has data showing greater than 50 reduction in hospitalizations with their antibody therapy, the one President Trump got. He also has positive data in the new england journal of medicine. We might be getting some treatment. Only 60,000 are available. Paul Health Care Reporter michelle cortez, thank you for joining us. Johnson johnsons chairman and ceo says the coronavirus has been underestimated. Speaking on the David Rubenstein show, he also said the pandemic has highlighted the importance of Global Public health security. Looking back, what would you say the cdc or the fda or the white house or hss should have done differently . Is there anything you would recommend to somebody in the future that they do differently if they were overseeing this kind of Pandemic Response . You are right. When we look backwards, things always seem clearer. I would also say that almost all of us have underestimated the dramatic impact of this outbreak. If you would have asked most people eight or nine months ago if you would ever see the kind of impact that we are seeing around the world right now, few would have gotten it right. But i think there are lessons to be learned. First and foremost, i think the importance of Global Public health, and i think going forward, we are going to understand much better that, you know, if we do not have Global Public health security, we dont have national security, we dont have economic security, and we will not have security as a society, so i think the important of being prepared, making sure that, you know, we have got the kind of protocols in place, that we have certain products, preposition, and also maniacal focus on efficiency and effectiveness in certain cases to one more of resiliency and sustainability, particularly for these kind of situations. David were you surprised how dependent may be Johnson Johnson and the Health Care Industry was on manufacturing things in china and offshore so that for ppe and other things, we really had to almost beg the chinese to get us some material. Will that change in the future . Were you surprised to the extent we were dependent on offshore production . Alex there is an important lesson for all industries, not only the healthcare industry, but every supply chain, and the good news is over the last several decades, globally integrated supply chain has reaped tremendous rewards in terms of efficiency and effectiveness for so many companies. However, i think it is important for us to realize that we have got to make sure that we have the kind of redundancy and resilience when these types of situations arise, so we are looking hard across our supply chain as we speak to say, look, yes, we can still take advantage of so many of the efficiencies from what we were doing before, but what other things do we need to think about . What other capabilities do we think to have more local, to ensure that, you know, in future pandemics, we are all better positioned and better prepared. David how do you think the world will turn for Johnson Johnson . Alex i hope we come back to a new and Better Normal rather than the old normal. Our values system along with innovation do depend on proximity, collaboration, and working together. And that being said, we also feel that going forward, we should not just fall back into the exact same habits. Will we fly halfway around the world for the same to our meeting the way we did before . Maybe not, but we need to have the same large gatherings with that kind of frequency, perhaps not. Over the longhat term, allowing people to get creating informal connections and networks around the company is really important to maintain our values system, our culture, as well as the innovation in our products and services. Thats Johnson Johnson chairman and ceo alex gorsky speaking with the Carlyle Group cofounder and cochairman, David Rubenstein. Lets have a quick check of what is going on with fortescue metals. We had a production update for the First Quarter and it looks pretty healthy. 44. 3 million tons of iron ore shipped, up 5 , pretty much in line with estimates. The average revenue per ton, 100 x dollars, and costs continuing to come down for fortescue, better than it did. Capex, 3. 4ntaining billion for the year. The threemonth chart, but the yeartodate chart tells a different way. Fortescue up 54 on year. One of the stars of the asx and a major beneficiary of chinas ongoing stimulus spending. Got to check the markets now and get over to Sophie Kamaruddin in hong kong. What are you seeing . Sophie i got a wrap of some morning calls we are keeping an eye out for. Avestors are positioning for resurgence in virus cases. I want to highlight a note from the chief asian Market Strategist over at j. P. Morgan. He is recommending to focus more on corporate debt rather than stocks, on expectations that Central Banks will come to the rescue and keep that punch both flowing if Global Growth falters and while he doesnt see consolidation for equities, he sees more room for em debt in u. S. Corporate bonds as well. Especially those which have outperformed global equities. In anticipation of a comprehensive Global Recovery next year, it is saying you have got to diversify your stock exposure. Shery lets talk about gold. It seems to be on shaky ground. What is the trajectory from here . Below spot gold trading 19 an ounce, looking at deterioration when it comes to that picture. Gold may face a correction if republicans retain the senate. They are saying there could be a dash for cash selloff that could push gold to 17. 62. Topics trick Todd Fitzpatrick says the outlook for gold is pessimistic. It is at risk of forming a double top which could see losses continued towards the 200 a moving average, shery. Shery we are awaiting the market open and samsung electronics. In the next hour, we are getting the final members for samsung for the third quarter. We are seeing the stock at a three week low. We fell for the past two two sessions. We are getting divisional performance out today and of course, we are watching what will happen with the smartphone section of things because they are a 5g leader and huawei overtook samsung to become the Worlds Largest smartphone maker in the Second Quarter but given all of the setbacks wally has seen including the u. S. Restrictions, not to mention market share in india shrinking, we could see samsung again taking the crown as the number one smartphone maker in the world. Plenty more to come on daybreak australia. This is bloomberg. Paul some breaking news for you from exxon mobil. Maintaining its Quarterly Dividend to . 87 per share. This is despite the oil round. We have west texas trading right now at 37. 43 a barrel. We have a hurricane closing in on new orleans. Never mind all of that. Keeping the thirdhighest dividend on the s p 500 despite this decline in the oil price, so maintaining that dividend at . 87 per share. Big tech was grilled by lawmakers on wednesday. This as concerns mount about combating misinformation on various platforms. Joining us now to discuss, we have the Cornell University professor, james, who focuses on digital and information. Section 230, we are all becoming very familiar with that. This grants legal immunity to platforms for content posted by users. Beforet drafted in 1996 social media even existed. Mark zuckerberg says it was instrumental to the way facebook was developed. What kind of reform now, 24 years later, is needed . That is controversial. The hearings showed republicans and democrats disagreed quite strongly. Republicans would like to reduce platforms discretion as to which speed they take down, and democrats would like them to take action against particular kinds of harmful speech like harassment. Paul what was your view of the hearings today . We did see a lot of namecalling, political posturing. Is it your feeling that more heat got generated . James absolutely. A great deal of it was making points about tweets or posts and very little discussion of the actual policy issues. Which i think suits the companys just fine. Of policyterms action, we have seen Vice President biden calling for the elimination of section 230. Are your thoughts about that . We have heard from jack dorsey saying that they actually provide protections for startups. Should it be a more targeted implementation or targeted approach when it comes to section 230 . Especially the application amplification of the algorithms that amplify harmful content, for example . James i think i agree. If you repealed section 234, many major platforms simply could not exist. It would lead them to shut down. Least, take them off the platform. Its about what kind of incremental reforms could make platforms more likely to moderate responsively, to lead to healthy discussions, to prevent the worst kinds of abuses. Shery what is the first step to get there then . A first step to get there would be to have some certainty from the election because i think the two parties now have such different ideas of what the problem is and what needs to be done with it about it that its unlikely to see a compromise. If you had one party with secure power, you might have a coherent agenda, you are not going to get there with the two sides that are there right now. Paul the timing of these hearings has been called into criticism. Is it your view that maybe it would have been better to do this after the election, and you think its possible we will end up doing it after the election . I expect so. The preelection timing of the hearing was a set by republicans that they did not want the platforms to be too hard on them in their speech. Hanging over them to keep from taking strong action. It was also serving both parties interest in scoring political points at a time when attention is on this topic. You might have something a little calmer in the start of 2021. Shery lets assume a biden victory. What sort of policies can we expect . Surprisedould not be if you have some targeted changes section 230 two try and require at least some systemic attempts to prevent harassment, to prevent largescale uses of platforms for spreading false and harmful information. You are more likely to see serious action on the antitrust front, taking actions that would try and break up some of the bigger platforms are at the very that impose regulations promote competition and smaller competitors. Shery on the competition front, how monopolistic are these companies . Varies greatly. Google and facebook are incredibly entrenched in the advertising market. Google is strong in search and facebook in social networking. Twitter is a Small Company comparatively. If you want to talk about competition concerns for apple and microsoft and amazon, it should be there too. Shery Professor James grimmelmann, thank you so much for joining us from Cornell University. Coming out, it kicks off what is expected to be a grandma earnings season for aussie banks as profits fall and dividends are slashed. We will bring you more on that, next. Dont forget, if you are away from the screen you can always , find indepth analysis and todays big newsmakers on bloomberg radio, now broadcasting live from our studio in hong kong. Listen via the app, radio plus, or bloombergradio. Com. Plenty more ahead. Stay with us. Shery heres a quick check of the latest business flash headlines. Lvmh is nearing agreement to revise its bid for tiffany when they post poised to save money from the original price tag. Lvmh is said to have proposed a Purchase Price of 130 one dollars, . 60 a share, down from the initial bid of 135. The yearlong saga has seen the french Government Intervention and impending lawsuits in the u. S. They are discussing the new terms. Ebays forecast for sales in the Holiday Quarter fell short of expectations, shaking Investor Confidence in its ability to transition to websites from stores during the coronavirus pandemic. 2. 7 are seeing around billion during what is traditionally the strongest period for retailers. Upes for the quarter were 22 at 25 billion. Late tradeurged in after reporting Quarterly Sales that topped estimates with ad sales bouncing back from the initial outbreak of covid19. Third quarter revenue jumped 58 to 440 million, but the company is predicting another seducer 6 growth. 140erest says it now has million users, which is up 37 from a year ago. And z has had its worst profit slump in an ugly earnings season for australian banks. They sought cash earnings plummet by 42 and dividends have been slashed as the soronavirus pandemic roil the economy. They vary confronting set of numbers from anz today although it was not unexpected and we are not going to be alone. Not no, it certainly was unexpected. It was in line with analyst estimates for sure. Note saying it was a reasonable result, all things considered. Be a verying up to ugly earnings season for australias banks. Anzsk the key issue in results, especially going into fiscal 2021, is the jump in the bad debt provisions. That sort for 2. 74 billion, which is the highest since the Global Financial crisis for the bank. Even though i suppose the deferred loans are coming off, what that actually is telling you is the operating environment going into next year is going to be quite grim. The banks have been warning even over the paschal of months that with the Government Support coming off, roughly in starting to tail off in january and ending in march, that will put a lot more businesses under pressure for there as well. The banks are driving to what will be a difficult 2021. Westpace have of course next week. What should we expect for the rest of the industry then . Matt i would expect a similar sort of thing for westpac and National Australia. Westpac have already announced they will be taking a 1. 2 billion charge to cover the record moneylaundering flying and some customer compensation as well and National Australia bank have set aside 400 million for other impairments themselves so we are going to be looking at another grim set of results but again, what will be the key is looking at the bad debt charge for what they are setting aside to what they think potentially businesses might become insolvent or people might not be able to pay mortgages. Burgess inhew melbourne. Coming up in the next hour, the boj decision day with the ecb on deck later. Four more policy Board Members joining us to preview the announcement in tokyo. Luzon Wealth Advisors ceo gives out her Market Outlook after the Global Software out. How much more selling is in store. A look at what the markets are doing right now. We are seeing u. S. Futures rebounding from those regular session losses we saw in the u. S. In the meantime, qe stopped losing more than 1 while sydney futures are also down. Of course, we had kiwi stocks at a three week low so thats really adding more pressure. Sydney futures are also under pressure. Dollar seen the aussie gaining yesterday after Consumer Prices rebounded from negative territory three months earlier. Right now, we are seeing a little bit of strength. Me to futures higher ahead of the boj policy decision. Kospi futures also higher right now. This after they rose yesterday. Fromorean won did fall that 19 month high on riskoff sentiment. The market open in sydney is next. This is bloomberg. Paul good morning. I am paul allen in sydney. We are counting down to asias major market opens. Shery i am shery ahn in new york. Welcome to daybreak asia. Asian stocks suffer losses after virus worries, new lockdowns, and the state of the Global Economy has the s p 500, its biggest decline in four months. The dollar climbs against nine of its g10 peers. Samsung electronics reports
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