Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

Hour, likely to confirm thirdquarter results that beat forecasts. The first since the patriarch. It may losewarning Legal Protection over user content. Lawmakers accuse platforms of abusing their power for political speech as the election nears. First, lets get you started with a quick check of the markets. Sophie kamaruddin in hong kong. Sophie after the steep losses we saw for u. S. And european stocks, we are looking for a downside move here in asia with earnings also in focus and we have u. S. Futures edging higher early in this session. We do have aussie shares under pressure, off by. 4 this morning. This after the tech lead rebound we saw wednesday looking shortlived. And set under pressure, falling 3 after recording a 42 slump in profit. Those results coming in line with analyst estimates. Check out the aussie dollar holding about 70 but trading near a nine day. It could be in the making the next few days. Metzler about the board to check in on some other assets in focus. We are keeping an eye on the vix move. We are seeing moves to the downside after the index jumped to 40 in the new york session while the dollar rose the most in a month, which did weigh on gold. Bouillon holding at 1900 an ounce. We saw warnings of a correction. Likely to stand pat. In the euro yen trading below its 100 day line of trading at a july though as youre virus cases are also in focus. Check out the offshore yuan holding a threeday decline, the best run since 2013 while chinese stocks are going nowhere. Ahead of the busiest earnings day for china of the season. Paul. Thanks, sophie. Breaking news across the bloomberg at the moment. Quarter earnings from budweiser, aipac, we have revenue for the net income for the Third Quarter, 316 million. That is up 26 on year. Adjusted ebit, 607 million, revenues appear to be improving as well. First quarter revenues saying 40 , 16 down in the Second Quarter. Thirdquarter revenue, 1. 8 2 billion, so that appears to be gradually recovering. This growth has been seen in sales in china as restrictions in asia, off during that Third Quarter. Weighing a little, perhaps tightening restrictions in south korea. The numbers at first blush were reasonably positive. Adjusted ebit hitting the terminal now, 1. 3 billion. Lets get a closer look at the selloff that we saw today in u. S. Equities, and what investors are doing with their money. Its bring in judith, the founder and ceo of luzon wealth advisors. She joins us on the line from los angeles. What do you make of the selloff we saw today . Do you see a buying opportunity or do you see warning signs to go for the exits until certainty begins to return . Judith thank you, paul. It is nice to be with you. Yes, so here in the u. S. , investors are obviously very uneasy coming into the election week. Back and today selloff have made them uneasy. There is valuations we have been seeing on the backdrop of a Global Health crisis, so add to that the uncertainty about the election which is only six days away coupled together with the division between the house and the senate and the additional uncertainty surrounding a potential additional round of fiscal stimulus. It really is the trifecta of uncertainty. While the vix there definitely in a high, as we have seen june, its important to keep perspective that the market is still nothing compared to the hives we saw back in march when the vix hit 85. That being said, we feel confident that the recovery is going to continue, although its probably going to be an uneven path and we do think that any potential selloff in the near term is a good buying opportunity for longterm investors. Paul the selling today was pretty broadbased. We sawtek hitting hit hard. That has been the traditional haven during the pandemic. You still do like largecap, but how do prices look to you at the moment . Judith thats an interesting thing. With regards to valuations, we have seen an interesting trend during the covid crisis. Covid has essentially taken the growth we would have seen over three years to five years, especially in the tech industry, and really compressed it and accelerated it into five months, so this results in a largely bifurcated market in which you have the mega tech names that have really ballooned and have a lot of people very nervous about whether it is another bubble, and then on the other hand, you have the rest of the s p 500 that are positioned to hopefully do much better and share a little bit of the love from the market once we get some more positive news about a potential vaccine. Shery how discerning are you being within the text fear right now . Tech sphere right now . We have a selloff in sap, so it looks like it will not be any more industry minute rallies for the tech sector. Judith yes. Interestingly, there seems to be a lot more Downside Risk than upside potential for Companies Reporting earnings right now. Valuations were disproportionately punished in march when we entered the crisis and during the Second Quarter, we saw a very strong recovery in some of those share prices as investors began to digest just how bad the damage was relative to what has been previously priced in. So what seems to be happening shows that if you can solid numbers even in line or beating expectations, you get to keep your share price. While any company can disappoint, expectations are severely punished. S p losing 20 in a day just shows you that if you cannot have good results, you are definitely going to feel the pain in the market. Shery right. You mentioned the stimulus package not coming here in the u. S. , but it seems to be more of a when scenario than if, no matter who gets elected into the white house. Would you tell investors to start envisioning encyclicals that have sort of done well for a time but then started underperforming again given this riskoff sentiment . Judith i would, actually. This is an historically contentious election. Is not a question of if we will get an additional stimulus package. I think it is a question of when and how much so regardless of whoever wins this election, there is agreement across the aisle that there definitely needs to be more fiscal stimulus. While there was still hope a package might be approved prior to the election, we are beginning to see a nice rotation encyclicals and more smallcap names. Evident as it became that stimulus bill was not going to be approved before next tuesday, we started to see the trade reverse out and investors are going back to that april and may playbook in which, you know, tech stocks, relatively speaking, hold their ground while everything off cells Everything Else sells off. About at positive news potential vaccine or therapeutics or reopening of local economies, you will see a rotation back into those value names that really have stood the test of time yet have not been able to receive that attention in the market. Judith lou, founder and ceo of zone wealth advisors, thank you for joining us. We have a lot of earnings this morning. We are just hearing from v ale, 2. 1 9 million. 1. 6 5 billion on the year. Third quarter adjusted ebit from vale missing estimates. We have also heard from another one this morning, fortescue metals, looked like a decent set of production numbers for the quarter. However, we have 44 point 3 billion tons, up 5 iron ore during the quarter, averaging 106 per ton. Despite that, we are seeing 1. 25 . Ue weaker by we had anz Bank Reporting earlier today. Profits something 42 , the worse result in a decade, due to bad debt provisions, but all the aussie banks suffering at the moment. The broader asx is off more than 1 following the selloff we saw in u. S. Equities. Just five stocks in positive territory on the index at the moment. Lets get over to Karina Mitchell for a check of the first word headlines. Karina. Karina big tech is being warned is Legal Protection over user content should be removed over accusations they have abused their power over political speech. They were grilled by a congressional hearing with republicans demanding to know who put them in charge of what can be posted. They enjoyed some immunity from content but angered lawmakers. U. S. China relations looks set to worsen further with the Justice Department charging aimed at dissidents. Were carryinghey out operation foxhunting which is beijings effort to track down fugitives and bring them back. It includes five people who were arrested in the u. S. Five of these individuals were arrested across the country this morning. The rest, we believe, are in china. Since 2014, at the direction of chinese general secretary xi china has been engaged in a Global Operation known as foxhound. China describes foxhound as an International Anticorruption campaign in which it seeks to locate legitimate fugitives around the world to bring them back for trial in china. Karina brexit talks head back to brussels on thursday amid signs of progress in resolving some of the big issues. Sources in london say there is hope and agreement could be reached early next month. We are told the two sides are close to an accord on 88 and how any agreement would be enforced however, london and brussels remain far apart on several areas including what they term a level playing field. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Paul. Paul thanks very much. Just getting a few more numbers here, i did mention that they had missed adjusted ebit, 6. 1 billion. That is an increase on 32 year on year, but the Third Quarter adjusted ebitda number, 6. 1 billion. We did have income at 1. 65 billion for the Third Quarter. Shery. Shery still ahead, it is boj day with the ecb also on the docket later. The former policy board member joins us to preview the decision. Im next, new records in u. S. Coronavirus cases are coming at the worst possible time for president trump. We are just five days away from the election. This is bloomberg. Shery this time next week, we may know who the next u. S. President will be. Donald trump is down in the polls against joe biden and facing an uphill battle as covid19 case spike across the country. Bloomberg government congressional reporter Emily Wilkins joins us now and emily, really, coronavirus cases are searching around the u. S. , especially in the midwest. How does this factor into the election . In a couplectors in of different ways. Number one, what are the biggest messages biden is trying to push . That trump has done a poor job handling this coronavirus and therefore needs to be voted out of office. These numbers play into that narrative. Trump has continued to downplay the virus. Surgingk, he called cases a fake news conspiracy, and that is one aspect. The other aspect is people have to come out to the polls and vote, particularly people who have thought that terms mornings on mailin voting and absentee voting is inaccurate or good, now these people put themselves in a situation where its too late. They are going to have to stand in line. Cases are spiking and perhaps even more and more people are getting symptoms. Heading into this final week, the president continues to be struggling in the polls. Intogave us all a lesson taking those with a grain of salt. That aside, what is his final pitch voters . Emily its interesting what trumps message has been. Hes been going very strong against biden but its a whole new level of attacks. We are used to seeing candidates attack each other. We are used to seeing those attacks not be accurate. For trump, its a whole new level. Practicingiden, a catholic, a man against god, that hes controlled by socialists and wall street. Both sides have criticize each others policies. Trumps criticisms have just been very strong and kind of detached from what he is supposed to be doing at this point. You can kind of see the president is really sort of going to rally his base and very strong against biden in light of the fact that his poll numbers have not improved nationally and in key battleground states. Shery dr. Fauci speaking in an interview right now that theres very little appetite for a lockdown in the u. S. And that mass wearing, distancing, would have a big impact, but he does not expect the white house to mandate a National Mass wearing. Mask wearing. What do we see in terms of policy for joe biden on how he would tackle the coronavirus differently . Emily what biden has said is he has acknowledged he does not think he has the power to do a federal mandate except on federal property. What he wants to do is really encourage, at the state level and local level, encourage governors and mayors, sort of everyone who does have more local control, to mandate mask wearing in various situations. That is what we have started to see throughout the last seven or eight months. The thing is that the Trump Administration really has not been consistent with their message as far as what they are expecting from states. Administration, we should expect him to be more clear and direct in putting pressure on local and state officials. Implement social distancing mandates and require people to take safety precautions at this point in time. Paul government congressional reporter Emily Wilkins in washington. Thank you for joining us. Still to come, big tech under fire. Facebook, twitter, and alphabet are blasted by lawmakers for bias and censorship and accused of abusing their power. We will have more of the details, just ahead. This is bloomberg. Shery the ceos of facebook, twitter, and alphabet got a drilling from u. S. Lawmakers with republicans accusing big pack of abusing their power over political speech while one democrat called them the wild west. Lets get more from emily chang, host of Bloomberg Technology. We saw a lot of political grandstanding here, but how much did this hearing actually move in terms of getting regulations or any changes on section 230 . Emily that is a big question. We do not know how much the hearing today will actually impact any changes to the law. What both republicans and democrats seem to agree on is big tech has too much power but republicans think theres too much moderation and democrats think theres not enough. The text ceos seem to broadly agree that they would like Something Like section 232 remain in place. They claim it allows them to police the most violent and vile content and enables them to continue to grow without, for example, having to watch every video before a user uploads it or reads every post, but they also seem to agree that there needs to be more transparency in terms of the process so if something gets taken down or flagged, users should utter understand why they are doing that. The question is, how do we get to come aground when it comes to actually reforming the law . Paul emily, is it even possible to get to common ground, Holding Hearings like this before a polarized election . Its likely we will be revisiting this before 2021. Will the process look different . Emily its at subsection 230 as a main issue on the top of the agenda for 2021, and the fact that this hearing was held six days before the election was not lost on any of the democrats. Some of them used their time to not question the ceos at all but to simply complain and point out that republicans made this happen in order to draw focus to what they believe is anticonservative bias six days before the election to try and sway some last minute voters. Will this lead to actual change . What does it actually look like . We dont know. The republicans focused a lot more on twitters handling of trump tweets and the New York Post article about hunter and joe biden than they did about some of the broader issues regarding information and hate speech. The question remains, you know, how these companies can continue to create healthy environments for people to have dialogues, but also make everyone happy. Shery what are the experts saying . We heard from Vice President biden that he has called for completely eliminating section 230. Is that viable at this point . Emily well, the company certainly hope that the spirit of the law at least remains, but the president has multiple times called for a repeal of section 230. He has tweeted repeal section 230 multiple times. We just dont know what a reform of the law would look like. The president has called on the Commerce Department to ask the fcc to take a look at this. Multiple commissioners who i interviewed said it is not in their purview, but the experts, the outside experts, are saying that these platforms have incredible power, too much power, and that they need to be regulated. The question is, what does that regulation actually look like . They have too much influence on how people think and act in the world and that can lead to influence on our actual electoral process, and the goal is to take any bias out of the process and make sure democracy is alive and well. Paul i think it is worth remembering as well, section 230 came into law in 1990 fix. Is 24 years old. It was around before social media was around. Is there at least to some consensus on all sides that it is time for an update . Emily absolutely. Section 230 was made into law when Mark Zuckerberg was 12 years old and before all of these Companies Even existed. Agreement,definitely it seems, on all sides, that the law needs to be revisited, that it is wonky, that it certainly does not cover all of the major issues that we are facing today. But we just do not know how that political process will move forward because ultimately, it is up to congress and it certainly seems like both parties can agree cannot agree on much of anything. When it comes to the power of big tech, everyone agrees it is an issue. Not everyone agrees about why it is an issue or how that issue should be solved. Paul Bloomberg Technology anchor emily chang, thank you so much for joining us. Lets get a quick check on the latest business flash headlines. Anz Bank Reported fullyear profit that fell the most in more than a decade as the virusinduced recession swelled bad debt charges. 3. 7 6rofit coming in at billion aussie dollars through to september with provisions at it is shaping up to be an ugly earnings season for all of the australian banks during the countrys first recession in 30 years. The Third Quarter earnings fighting off the effects of the coronavirus with new models and management. Fueled by strong sales of price pickups for posted earningspershare of the five cents, well beyond the . 19 forecast. Adjusted earnings came in at 3. 6 billion, double more than a year ago, and shares soared in extended trade. Coming up next, the boj and latest policy meeting today. We will be speaking with the board member about what to expect. This is bloomberg. Karina this is daybreak asia. I am Karina Mitchell. European leaders are imposing tough new virus curbs as social restrictions failed to stem the rise. Germany and france are going into National Lockdown again in record. Is considering numbers. The top expert, anthony fauci, is warning a vaccine will not be ready until january at the earliest. The Trump Administration has amended its selection of a new leader for the wto by vetoing one of the few remaining candidates. Washington will not join the consensus behind the former nigerian finance minister because it supports the rival, the korean trade chief. The u. S. Is set to he is to to trade internationalists. The fifth major storm of the year has passed the u. S. Golf coast. It came ashore in louisiana near new orleans and it may be the most powerful system to hit the city since katrina in 2005. Windsorm sustained of 110 miles per hour. It is expected to hit new orleans with the strongest guests in 15 years. Initial damage forecasts are as high as 5 billion. Nasa says it has identified a longrunning air leak on the International Space station. Teams in orbit and back on earth are preparing a permanent repair. Nasa says they were never in any danger. A platform is regularly threatened that has avoided any serious incident so far. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Shery. Lets get a quick check on how markets are trading at the moment. We are seeing broad Downside Pressure when it comes to futures. We are seeing the nikkei falling 1. 4 at the moment. The as we already had nikkei falling for the past three sessions. It is now at the lowest in over a week. We are seeing key restocks losing ground, at a three week low, and we have data this week. Imports declining in october. Asx 200 also dropping. This as we had some more positive Consumer Price numbers yesterday, rebounding from negative territory three months earlier. U. S. Futures rebounding, but this after stocks tumbled by the most since june. To bank of japan likely stand pat later at its policy meeting when it concludes. Amid rising waves of the coronavirus abroad. Lets get some analysis of the challenges facing the japanese economy. The former boj board member and University Professor joins us from tokyo. Thank you so much for your time, as always. Of course, i just mentioned coronavirus pandemic and perhaps risks coming from a resurgence, but what about the japanese yen . We are seeing a resurgent japanese yen as well. At what point does it become a problem for the boj . Moving thenow, its yen. They are manufacturing just as a warning because of the impact on the prophets. It is very difficult to do anything about it because it all comes from the United States and u. S. Elections, so in case it appreciates quite sharply. About that ing the market but its a very sensitive issue. Shery did we hear anything new from Prime Minister sugas policy speech when it comes to setting priorities, not only for his government, but just broadly, the economy, where the boj could go . Emily he made the speech. Really made clear about what Additional Support he wants to give to the companys in indonesia. Many of the services the government is giving to the company expired towards the end of the year or beginning of next year so i think japanese Economic Situation is good. We have a growing number of people. He has to extend some support. He has not built a strong intention to do Additional Support. Japan, itsbank of doing lots of liquidity support for the commercial banks, and then you know, commercial banks are borrowing quite a lot from the bank of japan because they are extending that to the sector. There is a lot of room for the for the financing under this framework. There is nothing whether boj can do at this age. A status quote today. Hearing from the former new york fed president , bill dudley, today. He said the fed is almost out of ammunition. You are saying the boj is also nearly out of ammunition . Sayuri yes. The bank of japan is doing everything they can do. In terms of asset purchases, you know, over this couple of months, the bank of japan maybe because the price is moving around 23,000. It is greatly overvalued. They are talking about the jgb. At this moment, whats important is the support for commercial banks. Before thatntioned more fiscal stimulus is going to be needed, you know, the Prime Minister has been rather noncommittal about what might be coming. What, in your view, needs to come in terms of fiscal stimulus . Themi because a lot of are going along, the pace a rebound of the japanese economy is much weaker. Its a very sluggish economy. I really think the government needs to provide support to small and Medium Enterprises and. Erhaps some continuation also for the people who have a job. Its Additional Support thats necessary, but at this moment, he has not shown any clear sign of support. Paul former bank of Japan Monetary policy board member and University Professor of economics, sayuri shirai, joining us from tokyo. We will be getting more insights on the japanese economy with our guests throughout the day. We will be speaking to the japan chair, christopher, in the next hour, plus bank of America Global Research head of japan economics, izumi, who will be joining on Bloomberg Markets asia. Shery breaking news in the u. S. The Supreme Court is allowing the extension. This would be a sixday mailin ballot do day extension. North Carolina Republicans had asked for a request to the Supreme Court for justices to block this due date extension, which is now going to be extended for six days. The Supreme Court voted 53 two the democrats in North Carolina. Amy Coney Barrett did not take part in this North Carolina ballot case, but of course, North Carolina being a key battleground state, this mailin ballot has been extended for six days, and of course, we have early votingoaring and mailin ballots so this could have some implications for the election. The economy, former new york fed president and Bloomberg Opinion Columnist Bill dudley says the impact of the economy boosting actions available to the fed is diminishing. Deadly told bloomberg tv the outlook for the u. S. Economy is deteriorating as virus cases spike. A stimulus the all may not happen for some time. Wethe prospects are that will not get anything substantial probably until after the inauguration which is many months away. Point, said at this joe biden will probably be elected president. I cannot imagine the outgoing Trump Administration is willing to do a deal for substantial fiscal stimulus bill. You are not talking about a week or two. We are talking about months. Thats important in an environment where the pandemic is worsening. Therefore, there will be more social distancing. Theres going to be more enforced lockdowns at various kinds of businesses. So i think the outlook for the economy is, you know, is interior rating. We are looking in the rearview mirror. This week, we will get the Third Quarter gdp. The worst decline in the Second Quarter. That is very much in the rearview mirror. We fell off a fiscal cliff at the end of july. We have not had much consequence for the economy yet because the fiscal stimulus was so great that it actually boosted household savings. Because the opening we saw in july and august and september, it actually provides support for the economy. Everything now seems to be moving in the wrong direction. That is what the stock market is reacting to. Essentially, you bring up what the last fiscal stimulus. Because when they first started talking about negotiating this next round of fiscal stimulus, the economy was in relatively good shape. It was obviously still deep in the hole but it was starting to show progress. We are at a stage where we are starting to talk about an increase in covid cases, potential for more lockdowns, and presumably, the potential for some sort of pullback in economic catalysts, economic spending, if you will. Does that sort of change the thesis that whatever gets past congress is going to have any real, material effect . Bill if it is sizable, it can do exactly what we saw happen with the first fiscal stimulus that was implemented back in march and april. And that did provide a lot of support to the economy because it bolstered Household Income and support its my so it essentially kept the economy going. We dont really know how the pandemic will unfold but what we can say right now is that at the margins, things are definitely worsening. The quarterly gdp numbers will be fine. If we look at things on a sequential basis going forward, i think we will definitely see a substantial slowing of growth. We cannot rule out a prospect of a doubledip if things get much worse. Meatwant to go back to the of your argument about the fed being out of ammo. Why not yield curve control . Why not say more aggressive further guidance . Why not negative rates . Why not more asset purchases at the long end . Why do none of these things count as meaningful dry powder for the Federal Reserve . Bill the Federal Reserve can clearly do more. How much of an impact will let have on the economy . At this point, not very much. The fed has already accomplished much of what Monetary Policy can do . They have Interest Rates down that stimulated the auto and housing sector. The Financial Markets are wellfunctioning. The 10 year treasury note yield fell from 80 basis points to 40 basis points and 30 year Mortgage Rates fell from 3 to 2. 5 percent. Do you think it would make that much difference in terms of the trajectory of the economy . Its not quite right to say the fed is out of ammunition. Its not out of ammunition but the effects of the ammunition, they are reaching rapidly diminishing returns in terms of consequences for those types of actions. Shery breaking news out of south korea. We are getting the final samsung earning numbers. The Third Quarter consolidated net income at 9. 2 7 trillion won, this would be a jump of 52 from the previous year. Its also beating estimates by quite a lot. The estimate was for around 7. 5 trillion won, beating expectations coming in at 9. 27 trillion won, consolidated operating profit also coming in at 12. 3 5 trillion won, broadly in line with pulmonary numbers. Sales at 66. 96 as wild. Our chief north asia correspondent, stephen engle, joins us from hong kong. What are these numbers telling us about samsungs strength . Stephen these numbers are confirming the preliminary numbers that came out october 8 at 10. 6 billion dollars operating income. Are rightl numbers around in line, but what we are getting this time in the final numbers, as samsung does two sets of numbers, preliminary soon after the calendar quarter is over, and then after three weeks or so, we get these final numbers that include net income and include the divisional breakdowns. See howtarting to mobile semiconductors, displays, and Consumer Electronics are all faring as individual units as part of the group. That net income number, up 52 dated net income, yearoveryear, and well above the estimate as well. That comeod indicator obviously, the Third Quarter is faring well for samsung electronics. Bread and butter, main revenue generator. It has had a bit of a roller coaster ride over the course of 2020, surging on demand through the pandemic, but then, as Discretionary Spending questions started rising through the Third Quarter, those numbers started dipping down a little bit. Dram Contract Prices may soften in the Fourth Quarter even though drops were a little bit less than forecast. Ase of that demand coming huawei builds up a lot of its inventory, bought a lot of chips from samsung as ahead of the u. S. Sanctions. Of course, that was the big topline headline from those pulmonary numbers. What we are waiting for our the divisional breakouts coming in this report as well as investors really wanting to know if we are going to get some sort of threeyear shareholder return plan for 2022. Of thes delayed because pandemic and the uncertainty and cash flow issues so investors eagerly awaiting that promised threeyear shareholder return plan. Also, we want to get a little more insight into inventories on those chips and handsets as well. We want to know how many did samsung ship . Samsung did lose his position as the worlds number one smartphone maker to huawei but with all the troubles in huawei, we are likely to see samsung again took the crown in this recently completed Third Quarter. Bloomberg intelligence is saying, sherri coale, if unit sales surpassed 64 Million Units in the Third Quarter, thats a sign the smartphone industry is rebounding because of course, that samsung shipment of smartphones dipped 30 year on year when we saw 90 million unit sales. Of course, this is the first set of results since the passing of the patriarch, jay y father. A lot of uncertainty on this front as well. Paul indeed. We are getting lines dropping on samsung. The mobile business saying it expects to see sales decline in the Fourth Quarter, and as you mentioned, they are expecting profit to the client on weaker chip demand. Demand staying soft due to inventory adjustments. To your other point about succession plans, how much is the process to succeed jay riley clouding the outlook for sams . Samsung . For stephen the divisions have their own professional managers so they are wellregarded. Of course, in maintaining control over their individual divisions, so its not as though, like their patriarch, who oversaw the whole group, jay riley has been the de facto r toairman de facto hei the throne. They have strong divisional leaders. A number of different things. Asy have not named jay riley his fathers successor as chairman yet because he is basically facing two trials for alleged corruption and other alleged malfeasance so the last thing they want to do, samsung, is named jay riley the chairman and then see him go off to prison. ,jay y. Lee, the chairman, then see him go to prison. He cannot drift through the succession issue right now. Also keep in mind, there will be a huge bill for inheritance tax. Keep in mind, samsung shares have risen 39 since the march 23 low so the valuation is even higher. The inheritance tax will be higher. Dividends be more issued to help pay that . And south korea often times pay with cash. How are they going to find the cash . Are they going to sell down some of their shares, the family members . There are some clouds for samsung on the succession front. Paul bloombergs chief north asian correspondent, stephen engle, as we continue to get those headlines on samsung results. There is plenty more to come on daybreak asia. Stay with us. This is bloomberg. Shery breaking news out of japan. We are getting the retail Sales Numbers for the month of september. A contraction of 0. 1 . This is very disappointing because the estimate was for a gain of 1 . We are expecting a second month of gains for retail sales. That did not happen. After the rebound, retail sales in the month of september contracting 0. 1 . Year on year, a bigger contraction than was expected. 8. 7 . A seventh consecutive month of contraction. Department and supermarket sales bigger than expected contraction of 13. 9 year on year. We have seen some Government Support in japan, including subsidies. Payment support for households, but it looks like perhaps domestic demand is still being hampered by the ongoing coronavirus cases and resurgence around the world. Paul. Paul all right, thanks. On thewant to update you jobseeking platform in australia, the second worst performer on the asx, falling by almost 8 after shortsellers published a report on the company. It gets 48 ut that of its revenue from a chinese platform. They describe it as rotten. They say research has indicated it is inundated with fake postings by companies that are either in liquidation, deregistered, or flagged by chinese authorities as abnormal. They referred to a whistleblower report which says it pays people to submit fake resumes. On the short seller report, we see them falling by more than 7 right now. Asia tech stocks are in focus at the open coming off a tech lead khalaf in the u. S. , and one sock we are watching his sony ahead of the open in tokyo. The videogame unit has a surge in demand for entertainment amid lockdowns around the world. With the debut of the playstation 5, sony is betting sales will be much better. Su keenan joins us now. Plenty of optimism around the playstation 5. What is sony expecting here . Its all about sonys gaming demand. They beat expectations and raised outlook on demand for its games business and that has been boosted by the pandemic related stayathome times we are now experiencing. U. S. E seeing adrs in the jumped by the most since april 6. Sony raised its fiscal year operating profit by 13 , 700 billion yen, 6. 7 billion. That, as mentioned, beat estimates. Thelso perceived playstation 5 highly anticipated debut. It plans to sell 7. 6 Million Units by the end of the fiscal year and that exceeds sales of the cheaper version ps for playstation 4. The entertainment giant is benefiting from this Global Consumer shift and while sales of the smartphone image sensors have been hurt by u. S. China trade tensions, it drawing a lot of gamers to its Online Services and it believes the ps five will outperform nintendo and really drive holiday sales and growth going forward. On what is looking like a very red day following the u. S. Selloff. Shery what should we be watching out for when it comes to those big earnings . Su its important to point out that many of the same tech giants that will be reporting later in this thursday session lead the way down in this most recent selloff. Third full day of the s p 500 falling in a big way and the volatility surging. Apple, amazon, google, facebook, twitter, these were all huge losers and most of them will be trillion 7. 5 companies. They are reporting in the session. Who have been warning a lot of prognosticators, some called them global profits. The tech stocks are grossly overvalued. Saying that this time could be here. If you look at the chart, Bloomberg Intelligence is pointing to this. That signals a correction could be in the offing. Ceo, he is a former hedge fund on wall street. A year now. Re than he believes the market is a raging mania when it comes to tech. This is not just a normal text day of reporting. These are stocks which could be an indicator of direction going forward. Back to you. Shery happening right now, softbank ceo and nvidias ceo speaking at the softbank world 2020 conference. Bloomberg subscribers can continue watching that at live on the terminal. This is bloomberg. Daybreak asia. From bloombergs World Headquarters in new york, i am shery ahn. Paul i am paul allen. Numbers addrus concerns to the strait of the recovery, the dollar climbs. The world bank is saying that covid19 could push 150 Million People into extreme poverty. Samsung dials up big numbers in its forecast for Third Quarter. Final profit rose 52 . Chick demandak that is ahead. Lets go straight to the Market Action with sophie cameroon in Sophie Kamaruddin and hong kong. The yen is holding onto its haven while the euro is under pressure. It is holding a threeday decline. Nikkei tickets earnings are in focus. Asian seeing moves and giant on watch given its profit. We are seeing shares rising about 1 this morning. A report board totch out the check in on south korea. Neighbor reported a beat this money. Samsung shares are on watch. We had the chipmaker report a beat for Third Quarter earnings. A flagged a potential profit decline in the Third Quarter. The kospi is moving to the downside, about wapo 4 about 1. 4 . The korean won is on the back foot as well. The an eye out from november body issuance plan from south korea. This is after an increase was called to the budget. This is to help shore up the economy. Lets look at the board to check in on all the stocks this morning. We are seeing that decline. Shares are tumbling this morning. Blue orca is targeting the online recruitment platform. A quick check on u. S. Futures. This moves mostly to the upside after a steep drop off. Dollar is holding steady. It is the best gain for the green back in a month. Lets get more Market Analysis and bring in our strategist mark. Is there anything that could provide the port asian markets . Or will they go the way that wall street did . Mark early signs are not good. We decided couple of markets open. Japan and korea are not looking bright. Everyone will be looking toward china. The market menaced hold up in china yesterday. There is pretty clear that it would be a bad day, we have seen european markets trade very badly during this. China has still managed to hold up really well. The main into see a slightly higher. That is where everyone will be looking. Of theas led asia out pandemic, in terms of economic recovery. Stock markets are holding up better than most it has some of the best Tech Companies in the world are making good profits. It is all up to china today. If receipt chinese equities at least slightly in the game line, that will bring some comfort to asia. 3 drop inbably a wall street that is substantial. A big hit for asia in general. What made be some growth in china would help offset some of the pain in the asian markets. Paul one of the beneficiaries all of this is the greenback. Is there a major reversal that is higher . Mark we will see a bit more strength in the u. S. Dollar. It is not surprising that when equity markets tumble, it has a certain haven quality. The dollar has been under immense pressure for several months. Positioning as well would be the people are pretty short of the u. S. Dollar. You would expect some rebound on their. It is unlikely that we would see anything like the highs that we saw for the dollar back in march. That is mostly because the chinese currency is in a completely different situation than it was in the first quarter. The sentiment has changed 180 degrees for the yuan which is now considered to be a strong currency. We are seeing the chinese economy and chinese data doing so much better. Pboc policy has been relatively tight and converts it to the feds. As auan is being seen strong, almost haven currency. That will limit any rebound for the u. S. Dollar. The yuan is very likely to see any spike lower. As long as we see stability and the chinese currency, it will modify any moon any move in the u. S. Dollar. Itll probably not be anything like we saw earlier in the year. , the worlds biggest ipo is set to trade a few days after the u. S. Election. How will this support the u. S. Market . Mark there is so much money in this ant ipo expedition. For four months of the stocks and how much it trades when it lifts on the exchanges, is a very important indication for sentiment in the markets. If it trades well and start to rise a bit, and if it holds above its initial pricing, people will feel relieved. That will help sentiment across asian equities. If it had a poor performance, and it slides below the initial price, that could really dampen sentiment, maybe even globally as well. It is how the stock performs after it hits the market, that will be a very big test of people in the weeks ahead. It will probably be the most watched trading day of any stock that we have had in asia. Be clicking into their screens at the opening time, particularly on the hong kong exchange. It will probably determine sentiment not just for that day but a few days afterward as well. Shery mark crandall, our market life strategist with his insights and views. You can find more mark crane on liveommentary go. You get a market run down one click. There is an analysis from bloomberg expert analysis. You can doubt what is impacting your investors. Somee is trading now. Raged their profit forecast by 40 . Sony iso game unit of doing very well. Youre seeing sony now at the highest level since mid august, jumping by the most in almost three months. Lets get to Karina Mitchell with the first word headlines. Karina thank you. We start with the pandemic. Curbs in tough new europe. Germany and france are going into National Lockdown again. The u. K. Is considering one while they and italy and greece report record numbers. Warning thefauci is vaccine will not be ready until january at the earliest. At other news, big tech is being warned that its protection against user content should be removed. They have abused the power of political speech. Twitter, facebook, google Work Railroad by congressional hearing. They had enjoyed some immunity from contests by limiting some recent stories. Is set. China relation to worsen with the Justice Department charging eight Chinese People for alleged operation on american soil. The doj the doj says theyre carrying out operation fox hunt, an effort to track down fugitives and bring them back. This included five people who were arrested and the u. S. Five of these individuals were crested across the country this morning. The rest, we believe are in china. Since 2014, at the direction of chinese general secretary, china has been engaged in a Global Operation known as fox hunt, which china describes as an it is about bringing back fugitives are on the road for trial in china. Brexit talks continue. Forces in london are saying that they hope for an agreement to be reached early next month. We are told that any agreement london and brussels remain far apart on several areas. Global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Paul. Paul thank you karina. Still to come, we will look at the Economic Future of china. Technology consumption and the environment are to be in focus. Up next, they World Bank Says that covid19 could push 150 Million People into policy. Mari pangestu joins us next. This is bloomberg. Shery as coronavirus numbers surge again, countries are looking at new restrictions that are threatening the world economy. The royal bank is warning that the new restrictions could put 150 Million People in new poverty. But speak with Mari Pangestu. We have seen the economic recovery being led by asia, as china comes out of the pandemic first. How has this resurgence in global cases threatened the recovery, in asia . Asia, we needfor to do what we are doing now. Each country is still undertaking these restrictions. Side, there has been recovery and trade. Container shipping, for instance. It is recovered and that at higher rates compared to the same time last year. I think that there are signs of recovery in asia. A lot of that is between countries in asia. They are on a recovery path earlier. It is still going to be much lower than before the pandemic. The rest of the world is still in recovery stage. Worrying isttle bit that advanced countries that have shown signs of recovery, but with this recent wave of breakouts, we think that there is going to be a slowdown on the economies again. Effect forave an asia as well. Shery what will this do to the progress that has been made so far on reducing poverty . Mari this is one of our greatest concerns. For the First Time Since 1998, we are seeing the rise of poverty. Poverty has been declining for the last two decades. Now we have a rise. Our most recent estimates are showing that we can see anything 150 millionbout more people entering poverty. Also seeing what we are calling a new face of the poor. Amd then another level out three dollars. The new face of the poor. They tend to be more urban, more women, more youth. This is, this is a great concern. We need to double of our efforts to address this rise in poverty. The reversal of the Development Gains that have been achieved and about three decades. We have the Human Capital losses as well. Kids not going to school. Also, the Food Shortages which is affecting nutrition of the children and women. Also, the health. The Health Impact phrase the covid,at as you address which tends to happen is that the other essential Health Services are also suffering. Womens Health Services, children immunization. Of the policy responses of countries, we must redouble our efforts to prevent this huge setback in Development Gains and get us back on track for ensuring that we protect the most vulnerable in our population. Pandemiccourse the inspired recession has affected developed and developing economies. Typically when that happens, it the first thing that gets cut in budgets is foreign aid. How do you persuade votes countries not to do that . Have not cut aid in the sense that, fortunately, we already have capital increases that were done recently. For the next one to one and a billionrs, we have 160 that we can rule out to the poorest countries. Long thison how recession driven pandemic, and how long these very dire issues on poverty and womens capital, needs attention, the needs are going to be larger than what we had anticipated. There is the sharp recontraction this year. There is going to be slow recovery for the next two years. We think that the vaccine will probably come mainstream the middle of next year. It would take time for the vaccine to be completed. Whether are you talking about in those countries are developing once, it would take time. Meanwhile, we have to do the balancing of the health and the economy, and that is going to be slowing down the growth. And that kind of situation, youre still going to have to do a lot of policies to ensure that your operations can be protected. They are businesses can still be continued. And to the extent that it would impact the financial sector, on your fiscal situation. I think the needs, we are estimating the needs are going to be larger than what anybody had anticipated. Paul to what degree do think the problems presented by the pandemic are being aggravated by other problems keep on top of that . Geopolitical issues, political unrest, how much is all of adding to the problem . Describe the situation as multiple crises. Political turmoil. There are countries where there is no government in the midst of a pandemic. Challenging, and you mentioned the trade issue. I think that is another issue that we are to deal with, in the recoveryt, how the will continue trade and investment. Oft the destruction something that would happen, would resume slowly back to normal. Regional value change will come back. Especially for east asia,. Tensions thatrade there will be lots of homework for us all to deal with all these issues. I think at the end of the day, it is about the leadership and his country. , it thean deal with covid crisis, and whether crisis the deal with. They have to focus on cuts. Why the best programs to help people. What are the best programs to help people. People lets focus our system on helping the people for now. That is about all that we can do in how people get to the situation. Quickly get your thoughts on energy security. At energyooking efficiency and 2050. Do you see any action that makes you optimistic that these promises are be followed up on . Mari we hope so. We think the crisis is an opportunity for agesish into a low carbon future. Asia plays a very Important Role for that. Coal power plants are in asia. A commitment and action in asia will make a difference. I do think the technology and the cost effectiveness of technology in Renewable Energy sector will provide us this opportunity. China has obviously done a lot ands area. India has a lot in seller. Hopefully in japan it is a big challenge. Transition outhe of coal . Can they increase new energy . Our position in the bank is that we do not offer countrieslook at how can transition into renewable energies. Storage, you still have fire power plants. Storage andave the facilities there . Technology and innovation will be key. Energy and carbon taxes and prices will also play a role. Paul unfortunately we are out of time. But thank you, Mari Pangestu for joining us. Plenty more two, daybreak asia. Paul samsung shares are down. The company is concerned this thirdquarter profit did not be estimates. Lets bring in analyst for more. What drove earning resorts . These earning results . Is that all about future demand . I think that the guidance, as expected, and sequential decline, in fact, thirdquarter earnings update, kind of in poor demand. Especially from huawei, the company is getting a lot of pressure orders, and that is why the market is concerned that the best earnings are over for now. Having said that, we remain quite positive on the smartphone business first samsung. Is expecting a sequential decline, that is fairly normal. Especially with the launch of the iphone 12. Samsung is getting a lot of market share in india. We expect more so in other areas where while weight used to dominate. Hallway used to dominate the q tell us more about demand of business from samsung . Anthea it really depends on how the company sees the second biggest rival now. That the isproof sam, that it would become second. The company is less strong in enterprise solutions. A climb that would help the company boost its products miss. It depends on how samsung views the rival what is formidable, and whether they would ramp up the paul thank you for joining us. Up next, we will talk about a brandnew day for chinese earnings banks, oil, earnings or more. This is bloomberg. Paul you are watching daybreak asia. Lets get to the first word headlines. European leaders are imposing tough new guidelines as coronavirus numbers are surging. Germany and france are going back into a locked done. U. K. Is considering one as well. Warningony found to his that i warning will not be ready until january at the earliest. The Trump Administration has upended the selection of a new leader for the wto, by vetoing one of the candidates. Nigerian finance minister, because he supports the revival the rival. That. S. Is said to feel this is too close for pro trade analysts. Zeta is a category two storm became a short louisiana near new orleans and as may be the most powerful system to hit the city is katrina in 2005. The storm has sustained winds of 110 mile per hour. It is expected to hit new orleans with the strongest gusts in 15 years. Initial damage forecasts are as high as 5 billion. Nasa is said that it has identified a longrunning arab league on the International Space station. A longrunning air leak. They have been searching for the week for several weeks. He said they were never in danger. Threatenedregularly by flying space junk but has avoided any issue so far. Shery heres a quick check on the markets trading at the moment. We are seeing a sea of red with the nikkei now learning a 10th of 1 . Every sector is in the red. Utilities and materials are leading the decline. We had september retail sales over the disappointing term. We have a little bit of a trend for the yen. This is the worst day in a month for the korean juan after a korean won after a 19 month high. Jumpedr confidence has the most since the Global Pandemic crisis. The asx 200 is that its lowest in two weeks. Stock. Or that kiwi it is losing ground at the three anhe Chinese Market opens in hour, and is going to be a busy thursday with nearly 1000 Companies Set to release thirdquarter results. Will hear from our china markets team leader in hong kong with a preview. Amonge the china vanke the biggest Companies Reporting today. Good morning. Trillion worth of stocks reporting today. Just for context, that is about one quarter of the entire hshare universe. This is a very busy season and a busy day in the season. On a day like today, it is equivalent to ag a week and the u. S. Earnings season. Is been a big scene of the year china basically asking the bank to sacrifice their profits. Theres been a lot of speculation that china will step back on that and let the bank post profits decline. We are looking to see whether that is the case. Far, over a thousand firms have reported so far. Not all of the companies are required to disclose thirdquarter earnings. 68 percenthave seen of these companies showing earning improvement. Theyll be the highest ratio of threequarter earnings since 2007. The Third Quarter is kind of a strange season. Not every Single Company reports. After a seasonably strong Second Quarter. It is the most important, and data that could confirm whether or not corporate china is recovering from the pandemic. We are also watching out for his ete earnings. What are we expecting from the thirdquarter earnings are . Sofia that company moved into the spotlight, and it has been for most of the trade war. That,pectation there is is that the impact from the trade war is not as huge as it was before. Banks,us is really on and it will prey a broader they will paint a broader macro picture. The macro recovery will be more visible. It was the hallmark of the trade war. That is not the focus today. Leaderry to markets team thank you for joining us. Earnings, wehina are joined by Sophie Kamaruddin in hong kong. What are some of the highlights . Sophie a thirdquarter profit was delivered. The economy continues to reopen on the mainland. Government stimulus also helped to lift fuel demands. There is a rebound from the first ever halfyear loss. That is a big improvement from the same. Last year. Abused, a Third Quarter result that is pretty decent. Consumer storya is important for recovery, what are you watching . Saw an yum china improvement. Amestore sales were in negative. Boosts to trim costs and productivity, that is bearing free. Margins are climbing for yum china there are plans to open more than 900 stores before the year is out. That is what is on the docket. Shery Sophie Kamaruddin they are with the latest on chinese earnings. There is plenty more. Boostis excited to be a in the automobile sales. Get earnings from more later. Paul Deutsche Banks fixed quarter,nd its latest and how it will help drive debate to profit. Says that the trading boom is inspected to continue to the end of the year. We continue to trade well despite some of the headwinds in the environment. Two of our businesses, private and corporate banks are fighting through the Interest Rates headwinds. They are doing quite well on offsetting that headwind. There are on there are uncertainties in the macro environment. We factor that in, as we manage our businesses and risks importantly. We remain quite competent in our outlook, in the way that we are managing through this pandemic. And importantly, as we have talked about consistently, supporting clients and supporting the economy, as we all navigate a very unexpected how hard would Deutsche Bank behave if there was another wave of lockdowns across europe . Some we have built into conservatism into are no birds. We have been more conservative in our provisions. We think that that prepares us well for the uncertainties that lie ahead. We are not seeing a deterioration in the portfolio beyond will be expected in this environment. While we are all of course subject to these are dark to the direction of the economy and the potential impact of distancing and Protection Measures in the economy, we think that the Second Quarter experience has shown us that the households and corporate are relatively resilient. Governments are in the position to support the economy through this period of uncertainty. The year, youhout have said that you expect profit in the foyer, which most analysts did not believe for the time. Of the profits, how big is the profit going to be . Will it will it exceed 1 billion . James we are continuing to work through our structure. By profit was burdened researching and severance charges and transformation charges. There was a burden from the capital release units. That to continue into the Fourth Quarter. We will continue to execute this plan on this transformation of the company. Profitlion of pretax process and a good position to being profitable in the pretax land this year. Anchor revenue has arisen. Has this built momentum continued in the Fourth Quarter as well . James we are continuing to see Client Engagement in the business, as the environment, as we have all expected to normalize a little bit. There is still uncertainty and the outlook, and there are still events ahead of us. Whether the u. S. Election or brexit that causes volatility in the market. We have done very well, 47 year on year. That has been quite consistent are for the past four quarters. We have basically doubled rates revenues for four quarters in a row. For us, the sustainability of these revenues is a key factor. We think a significant amount will stick. Shery that was james monroe tick that was representative up next, we will speak with Christopher Lafleur. This is bloomberg. Paul as we count down to the u. S. Election, japan is also deciding its timing of its next vote. It must be held in less than the year and it will be key to the Prime Minister suga and his longevity. Lets bring in Christopher Lafleur, of American Chamber of commerce in japan. President trump seems to have developed a working relationship with suga. Who will he potentially be dealing with, and what does the relationship look like . Christopher i think under prime japanese forcehe a great relationship with the Trump Administration. I think that it will continue under Prime Minister suga. He has already demonstrated that he continues to hew pretty closely to the Foreign Policy that had been set forth thai Prime Minister abe previously. By Prime Minister abe. Actually, i expect to see under Prime Minister suga the relationship to continue, to develop and hopefully get even stronger. Biden emergejoe victorious after next week, as their next edition in japan that the u. S. Might end up turning the tdp . Christopher i think that that hope remains. It was certainly hope that Prime Minister abe wanted. I hope that Prime Minister suga would welcome us back if that was the case. It needs to be said that over the last three and a half years, a lot has happened. The u. S. Chamber is very supportive of the ongoing u. S. Japan bilateral trade negotiations. Phase one of those negotiations was completed. Relatively early. A few items were included, notably in agriculture. There are some other key issues that ought to be addressed in the bilateral context. Equitableg continued access to japans Major Health Care market. We also have some major new opportunities in the future, and the development of the digital economy, which is an area where the u. S. And japan are ideally positioned to collaborate on ensuring that the internet economy continues to expand, and would be one of the key drivers for the recovery of the Global Economy after the pandemic proved i think that which ever admission wins, we want to see that bilateral efforts, it does negotiations continuing. , the Trump Administration has also put special emphasis, evermore so in recent months, on the growth and development and strengthening of the indo pacific region. Whatever administration wins, would like to see the u. S. To step up to greater collaboration and cooperation with other countries, on trade and economic development, and infrastructure development, here in the asiapacific area. Shery we have already seen some of the uncertainty surrounding the coronavirus pandemic, and with the election, send safe havens like the u. S. Dollar and japanese yen much higher. How are your members dealing with those changes and the uncertainty, and also perhaps a contested election next week . Christopher i think for us here, we have the advantage as it is of seeing these things at with a remotely. I have strong confidence at the end of the day, the American People will make a wise decision, and that the american system will be able to deal with what are obviously subdivisions, within the country. Avoid, we will emerge stronger from this. We will have to see what the outcome is here. In japan, the u. S. Japan, the u. S. Business presence and japan is enormously strong and very robust. You are seeing the japanese economy, which is really dealt with the pandemic more successfully than many others, you are saying that economy began to grow again. You are seeing that economy began to grow again. There is definitely that forties within american companies. One of the Key Opportunities is in regard to japanese government travel policies with respect to foreigners. Everybody understands that the pandemic create some unique circumstances for every country. We really appreciate what the japanese government has done to control the spread of the virus on the here and japan. It is important that foreign and faces people be able to travel for business to and from japan, in the same way that japanese nationals can travel. Roy looked to the japanese government to continue to move forward to ensure that there is a full equity of treatment for both japanese and for Foreign Residents here in japan, particularly in the business field. Shery what kind of conversations have you had with the government, and how much has the research and hurt businesses . Christopher it has hurt businesses. We polled our members several times on this. The inability to bring in executives, some who have already been assigned to japan, and no more replacements is a big problem. The challenge to bringing in shortterm, experts, who are needed here to help advise fix,ese clients or help its deal with maintenance issues, or system issues. Those sorts of personnel are necessary to maintain a global business. Hope that japan, which we want to recognize has taken very important steps over the last several months, to ease the restrictions that formally applied to Foreign Residents. Remainede restrictions, and we went to see those with that as quickly as possible. ,hery Christopher Lafleur thank you for your views. Chairman of American Chamber of commerce in japan. The ceo of emphasis spoke to bloomberg about the impact of the coronavirus on business and where he sees growth returning post pandemic. Having seen what has gone on in the last few days, we know that there were numbers like have impact. We know that the way that we look at our business is taking into account some scenarios of a second wave. We were not considered extreme scenarios at this time. Well have to see how this plays out. What we have also noticed is that many geographies businesses have learned to work with some of this medical. Im not saying that it will be possible, but there are things that are going on. People are using therapeutics. People are using masking. There are ways are of people finding to work and align the economy even on a personal level. Well have to wait to see how this plays out. We are working through some of that sinners. Car the scenarios. Oline the numbers are increasing, there is no questioning to it. There is a lot of medical knowledge that exists. I was in a discussion with a europeanclimate client. Ofre are more measures constraining activity, and measures that we support medically. We have to wait and watch how that plays out. At the end of the day, we do not think it will impact. It will be guided. Caroline speaking of european companies, earlier this week, we had dreadful numbers of s p. Provider say that lockdowns will think will impact the business. Withy, what has happened covid is that they work from home focus is strained technology. It is been a force of acceleration and that investment. What you see . Do see the s p side of the equation . Do you think that there is commitment to this acceleration . Caroline isil what we are seeing that Large Enterprises are going through a big Digital Transformation programs. They are moving to the cloud. Here, we have built a tremendous engine within emphasis, which is our digital business. 25 year on grew year. As ishat really means for partnerships that we have with cloud providers, companies are going onto the cloud infrastructure, those are the areas where we see more traction. We are participating and those areas, and that is the benefit of the growth that we are seeing. Our Growth Guidance is to present or 3 for the full year. We are not talking about returning to where we were. Before the medical crisis, when we were at 9. 8 . It is certainly better than what it was before the end of the corridor. Are seeing a gradual expansion in the gardens, more because we see the activity of the cloud permit. Caroline do you think you will get back to 9 . Salil we have a view for this financial year, which is through much of 2021. My sense is that given the momentum that we had getting into the crisis, we think as we come out of the crisis, we will have equal or more momentum. It is more competitive on Large Enterprises to push ahead and accelerate with a digital journey. They more that we are able to participate and partner, the more likely we are to gain that sort of moment again. Shery we have breaking news at the moment. We are hearing that the tiffany board has approved the cell at a lower price. To lvmh, andsale is down from the original price. This would also pay its shareholders of t8 since per share. The Financial Times is saying that this deal will likely close in january. Conflictr threatened to derail the luxury sector. We are seeing that this will go ahead. Tiffanylvmh deal. Paul lets get a quick check of the latest business flash headlines. Samsung is doing better in the Third Quarter. Stocked up on ships on chips. Under pressure as samsung expects growth to fall in the Current Quarter based on weak demand of the chips. Australia is reporting profits that have fallen more than one decade as the buyers induced recession has swelled bad debt charges. He provisions of in the next hour, as we had to be busiest earnings day and Chinese Markets, we will get a preview of earnings for chinese spenders. This is it for daybreak asia. Market coverage continues next. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. 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