An estimate of expansion. About 1. 3 . Switching out the boards and having a look at the other asset classes, which are in the mix at the moment. The u. S. Election, according to a survey, sending the dollar in opposite pumps. If donald trump wins, we could see a stronger dollar. If joe biden wins, the reverse. Also wests going on with the also was going on with the yen. Against the backdrop of a slightly better industrial read out of japan. Opposed to. 8 . Al, despite coming back, has 36 a barrel handle. Oil is set for its worst month since march. It is down to coronavirus demand fears hitting things. Bring livee want to pictures from vietnam, where mike pompeo is meeting with the vietnamese deputy Prime Minister hanoi. Counterpart in this is part of his tour in asia. Some have called it an empty china tour of asia. Thats happening right now. Both are expected to exchange ideas. Up relations with the two countries. Vietnam had been boosting its import of u. S. Products. Mike pompeo wrapping up what they call an antichina tour of asia as the election race enters its final stretch. Mike pompeo right now. Lets get the first word news with Karina Mitchell in new york. Informationwith new on the pandemic. Coronavirus numbers continue to rise in the u. S. Reported new cases in new york the highest since may. A record surge in the midwest. A new report says the death rate for covid19 is higher in upper income countries, which have more elderly populations. Imperial College London says the origination fatality rate is more than four times that of poorer countries. Germany is sending out a wakeup call to eu leaders, saying they failed to move fast enough on the virus as it calls for its second lockdown. Angela merkel says political reality stopped governments from imposing tighter restrictions, leaders must act more quickly. Germany and france are now entering new lockdowns. The u. K. Is considering the same. The European Central bank offered a strong hint news stimulus is coming as eu governments impose new virus lockdowns. The Ecb Governing Council is holding its Bond Buying Program through at least next june. It will not help support until the covid19 crisis eases. New forecasts in december will reveal plans for more Single Market support. Ant groups imminent dual ipo continues to make headlines, attracting more than 870 times shares offered. The subscription is equivalent to 2. 8 trillion. Thats a record for the market, according to bloomberg calculations. Trading accounts for the online offer atop 5 million for the record. Global news, 24 hours a day, on quicktake,bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell, this is bloomberg. Tom we will head over to beijing. Have a look at the pictures coming through. Broad outcome of its 14th fiveyear plan. The foundation for government industrial plans in what is a heavily regulated economy. The country turn into a technology powerhouse. On top of that, this is a mantra they had been following since at least 2012. That is quality growth over quantitive growth. At the same time, we have them talking about Foreign Policy which is a statement by the official news agency after the meeting. Ties withng peaceful taiwan and homeland reunification. Joining us to put this into antext is andy xie, he is independent economist specializing in asia. We got thuseen news far. We will have much more revealed in the early part of next year. I dont think so. I think the government has been talking that way. We are hitting the local target, and the emphasis on reducing extra risks i think thats what the government has been saying for a long time. Rishaad what are the highlights . Whats different this time, in your view . Usually, it doesnt offer any surprise. The main thing is selfreliance in that. U. S. China the u. S. Tech were against china will continue. Thats the most important element in chinas growth headwind. So it is very difficult to predict the growth. Thes why they have ditched growth target. Instead, the government will invest nationally in developing technology. But it is a really tall order. To replicate Global Supply chain independently, it will take a long time. Shery exactly pick haslinda exactly. Tech innovation the pillar for chinese growth. It will be difficult for them to play catchup. What steps will be taken, what is necessary . I expect the government to invest heavily in reverse engineering. But this is not really one product. We were talking about a whole supply chain. China basically wants to , companiesusinesses like applied materials, land smc, samsung. They want to create chinese equivalents of these companies. To build these companies, we need thousands of component suppliers. Then you have to go back to create these components apply companies, and they have suppliers. We are talking about tens of thousands of companies potentially. Anthis is not going to be easy thing. It will take a long time. Downll be lucky to have it in 10 years. I would think that is very fast. Even 20 years as possible. Haslinda are you saying that with dependence on the u. S. For semiconductors . If you look at the numbers, imports above 300 billion of semiconductors a year from the u. S. Alone. Is not just 300 billion, it is basically if you have a mobile phone without a chip, it doesnt work. Semiconductor, in the 21st century, it is like oil in the 20th century. U. S. Had athe stranglehold on china. I see that the Chinese Government has to accept a pretty slow growth Going Forward, instead of pushing for technology, the best technology. What hasl settle for for now, like 40 is good enough, it works. 5g the next 10ve years, so what . So that kind of attitude is what we will probably see. Dont chase after the best. Just looking out whats going on with this, looking forward to the election, do you think theres a feeling in beijing that they would prefer one man over the other . They dont say anything about biden, definitely. Trump he has scared a lot of people, they say hes unpredictable. Machineing, it is not a that can react quickly. Beijing always takes a long time to come up with a decision. We need to have a lot of people and so forth. So i think biden has been talking about consulting with allies and so forth. So anything coming out of a Biden Administration will be well broadcast and will take a long time to formulate. Ar beijing, it is probably sigh of relief, something predictable coming again. Rishaad the thing is, the antichina sentiment has bipartisan support largely. As some people suggested, some democrats are even more hawkish than republicans. Maybe there is more clarity this way, im not sure. Im sure you might know. I think there is more clarity. There could be some easing in sayingiff war, biden is they are hurting American Consumers more. It is not helping the u. S. , because it is not bringing jobs back to the u. S. Could be some rollback of the 25 tariffs. But i think the model is here to stay, it will become much more systemic. Itmay take some time, but will go to other chinese companies. Thisnk the u. S. Has found approach the best, in terms of chinas growth in Technology Without hurting the u. S. Economy. That is going to stay. Haslinda some say both sides will not decouple completely. What areas may china and the u. S. Work together . Climate, perhaps . The relationship, we will probably settle for china to go back to being the factory of the world. U. S. Companies can continue to produce in china, like apple. Chinese companies are not a producer like apple, so you cannot have huawei competing against apple. I feel we are going back 10 years, thats probably acceptable to the u. S. To the chinese economy, probably it will probably not go down that much, but it will not go up. A new strategy to help improve the relationship, ae Chinese Government mutual target for 2016. Theres got to be something to work on. So far, the Chinese Government has not come up with a detailed plan. I think that plan hasnt gone aggressive enough. For china to really get on the u. S. s side again, you have to do something aggressive. Target, of the 2060 wanting to spring forward and show to the world chinas leadership. Its not just propaganda, not just talking points. If you do that, maybe the world enoughink beijing is big to at least support. Thats where beijing thats what beijing should do. But so far, their mentality is going back to the great war psychology. Is chinas history, swinging from opening up to the lines. So we are clearly in the second phase. Itght, we will have tight, we will have more with andy xia after the break. Bloomberg subscribers can keep watching the press conference by chinese officials at live go. Big texead, shares of stocks plunged after even solid sets of results. Is sentiment turning against them after a red heart this year . Rishaad japan sets an ambitious goal of zero emissions by 2050. We discuss the investment implications with hiro mizuno. This is bloomberg. Haslinda we are looking at live pictures out of china, where a press conference is happening post of the china plan, which lasted for four days. Looking at the yuan, trading higher by. 4 . The dollar at 6903. 660 8. 98. Yuan strengthening by. 4 . It has been strengthening. That perhaps Shows Confidence in the chinese economy. Joining us now from shanghai is an independent economist specializing in china and asia. We were talking about how china is looking inwards, is looking to be selfreliant. Wanting tong consolidate his power . Initial policy was to make china more important to the world, have more influence. That has somehow led to this backlash of negative feelings and actions toward china from all sides. There is a feeling in the government and among a lot of people that china is facing enemies on all sides, and we are not so reliable anymore. That is the dynamic leading to where we are. And theese people government, there seems to be some sort of consensus that the country needs to become more selfreliant. Rightda it has made the gestures recently. Initiative,e kovacs also talked about a green recovery. Without will that be enough to address the backlash china has seen recently . I think it takes a lot longer. You look at all of the surveys in most countries, the negative feeling towards china is still very strong. It is something people have seen further over 40 years. It wont go back on a dime. It is here to stay for a while. The reason why i think china needs to do something much more, like these Carbon Neutral targets, it needs to be brought forward with details. The most important issue for the world, global warming, and china can do something about it. China has a government that can do something about it. I think if china really pushes on that, and shows the world what a difference its making, then internationally it could improve. Anecdotale have seen at some, and looking menus coming out about the latest death figures, figures for the covid cases in the u. S. , but what was actually behind this v shaped recovery china produced ultimately . China is a productionbased economy. Like the pandemic, covid19 affects china less than a service economy, like the u. S. That is selfevident. The second important is during the Third Quarter, most governments had pushed out a lot of helicopter money. The production hadnt recovered. All of the helicopter money partly turned into demand for chinese growth. Haves why chinese exports risen in a global recession. China has benefited significantly from whats going on in the west. And theer money lockdown, china is very lucky in that regard. Very quickly, looking at whats going on, do you think they are comfortable with the yuan where it is . I think so. The dollar index is down from a recent high of over 100 to where it is now. The yen has not really approached that in that context. They have been targeting some sort of weighted average between dollar and other major currencies. Rishaad thank you very much. Andy xie. The u. S. Set a new daily record for covid19 cases. Now over 86,000. The total tally at the moment ofped saturdays total 85,317. The final number for the days will take time to calculate. The biggest so far, claude chinas high of any country. At the same time, the u. S. Is setting its new daily record for these cases. There are more than 86,000. Thats what we have at the moment. We will have more on that and the rest of the market action. This is bloomberg. Haslinda welcome back. Heres the latest business flash. Surging after saying it received a takeover approach from ares management. It is in early talks. Amp said in a statement the discussions are at a very preliminary stage, and there is no certainty a deal will eventuate. Theres been no indication of the value of the bid. Amp has a market value of more than 3 billion u. S. Dollars. Exxon mobil plans to slash its of 2022 asby the end it looks to preserve dividends. The cuts will include almost 2000 in the u. S. , mostly in houston, as well as layoffs in europe and australia. Exxon has reported the worst string of quarterly losses since its takeover in 1999. Investors like the job losses and shares jumped by as much as 5 . Sales plunged 2 in september from a year ago, signaling demand for new cars is recovering, despite the virus pandemic. Worldwide recoveries rose to almost 838,000 units. Ae first months of growth in nine months. Sales jumped 16 in the u. S. , and 25 in china following the beijing auto show. The president of toyota vows the company will remain in profit. Boeing is set to be selling new bonds to repay 3 billion of debt. The announcement coming minutes after its Credit Rating was downgraded. It is issuing almost 5 billion of Unsecured Notes as they go one notch to bbb slumps, the lowest. They abandoned their forecast and will start burning cash next year. Rishaad japanese markets going off for their lunch break. A quick check of whats going on. Industrial production data. 4. 5aw the biggest jump in decades. Factory output up 8. 8 near the end of september, compared to the quarter. We also have jobless levels in japan at threeyear highs. Lets look at other Companies Making waves currently. A four point 4 lift after it Beat Estimates. Xe got news, as far as xbo being beaten by the ps5. A lot of movers. This is bloomberg. 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Com. Kong is 10 29 a. M. In hong and shanghai. Im Karina Mitchell with the first word headlines. China has released the first glimpse of the fiveyear plan promising to build a tech powerhouse and emphasize quality growth over speed. Initial details stress the need for sustainability and a robust mastic market. Softew plan elevates Tech Alliance to a National Pillar that there is no guidance on the desired pace of growth. Growthd is revising its outlook, saying the economy will shrink by less than previously thought. Toryism, electronics and the wider economy have been devastated by the virus but the government sees a contraction of 7. 7 . That is down from a decline of 8. 5 forecast in july. Two american men accused of helping the former nissan chairman carlos dont carlos ghosn escape prosecution have won an 11th hour a judge decided to allow more time for an appeal. They were notified wednesday evening they would be sent to japan. French president Emmanuel Macron has promised to stand firm in the face of islamic extremism after three people were killed at a church in nice. He is increasing the number of soldiers assigned to antiterrorism duty from 3000 to 7000. The attacker was shot and wounded. He has been identified as a tunisian national. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Karina Mitchell. This is bloomberg. Back over to you. Japan set an ambitious pledge to become Carbon Neutral by 2015 but without laying out a clear plan how that will happen. The plan is one of the most ambitious new policies that have been unveiled since taking office last month. With discuss the policy hiro mizuno. Always good to see you. I am just wondering, how much itical will is there from given especially that fossil fuel imports in japan have been increasing . Hiro it is nice to see you again and thank you for having me today. Statement. A big to many japanese including the people in the Public Sector as well as the private sector, received that as a surprise. Climated a lot of the friendly action over the last several years. Only twoned out to be countries of the g7 countries successfully revisiting power in the last five years. It kind of came as a little surprise. I think it will make a Significant Impact on how the japanese political and Business Leaders will react to that. Underof things coming up the surface. It will take time for you to hear how to achieve that. Haslinda in your view, how will japans net zero possibly look like and what are the implications . M wondering as well what the role of nuclear in japans carbon target. Hiro a short time ago it just became a short time ago. Japan is going to go into the fiveyear cycle of revision of the energy policy. This is exactly the time [indiscernible] the ministries including the economic trade and industry to have a serious discussion for how to achieve the. I really welcome the announcement. The basic scenario, in other words the goal for how to approach energy policy. Whether we will continue to use the nuclear and how we can. Evise our policy on coal all of those have to be revised. He said in his statement that our policy will be fundamentally revisited. Fit intohow does it economic planning . Have is time, we it a different beast . Is it a different economic approach coming from the new Prime Minister . Hiro sure. He won theinister, position by promising he will continue to work on what mr. Abe started. The three arrows, monetary easing, not much they can do. The fiscal spending, there is some criticism it did not do enough. Now because of covid19, all of the major, all of the government do a lot of fiscal spending. Deregulation, it did not go through during the abe times. On the top of that, suga Prime Minister sugas announcement of a Green Economy [indiscernible] you look then is going to push transformation of the economy including the traditional [indiscernible] suga has the transformation for the japanese Economic Growth into the future. Rishaad and of course environment is going to be a part of this future as we have been discussing. Think Pension Funds such as your previous gigi palla do you think they are doing enough in regards to investing . Hiro i tried to advocate the importance. , [indiscernible] now, japan has the most number for the economic disclosure recommendation. I think it is moving well. The announcement by Prime Minister suga will hopefully push the japanese Financial Community into [indiscernible] the banks can do more. Be [indiscernible] haslinda you talk about how banks can do more. Do you think they will do the same for gas . Too as i said, we need evaluate all of the possible sources of energy. The nuclear should be no exception. The gas is more efficient in terms of the carbon efficiency but still produces a lot of coal. Moment, focusing on how to reduce cold dependence. Accept that as a transition. I heard from investors they are trying to reduce [indiscernible] at the end of the day, we will [indiscernible] investors by definition, [indiscernible] realize it is not going to be clean energy anyway, they start reducing their exposure. At this point in time, that does not happen overnight. The gas remains for the time being. The other realistic Transition Energy source. Fewer the [indiscernible] haslinda thank you so much for your insights. Will be sure to catch up again soon. Japansial advisor to trade and ministry. Earnings results failed to impress. We will go over the top and bottom lines from the likes of apple, facebook, google and twitter next. This is bloomberg. Haslinda live pictures out of china. Commonest party unveils the communist party the outlines of its plan. The full plan will not be released until march. The picture of the chinese science and tech ministers speaking in beijing. He has been saying that tech selfreliance in china does not contradict the opening up of the economy and hopes both to learn from the world as well as share chinas own innovations. China can asking for or by Core Technologies from elsewhere. This on the back of chinas fiveyear plan. China unveiled the glimpses of the economic plans for the next five years, promising to build the nation into a technological powerhouse. Rishaad lets keep the text theme going. Thursday was a massive day for earnings in that industry. Part, these for the most part, the earnings were solid. Su keenan joins us. Lets start with apple. Iphone a dive on weak sales. New iphone,p to a you see a drop off in demand. I think this is worse than they have been anticipating. Su the more the next model as anticipated, the more the dropoff is. Iphone revenue was down 21 . Revenue in china slumped. The mac, ipad and service cells slumped. That caused apple to beat the street. Shares were down 4 after hours and that have everything and that had everything to do with the iphone sales mess. New phone cause people to slow down cells of the current phone. The company gave no forecast for the holiday quarter. Spot, the ceo tim cook said the new iphone 12 line has been well received. Lets go to amazon, which also fourthquarter estimate. It was down about 1. 5 . The highlight . Amazon Ceo Jeff Bezos predicted an unprecedented holiday sales season and a steep jump and sales in the Third Quarter. That indicates amazon expects the surge in sales to keep going. That spending will continue to weigh on profitability. To 120 why the revenue billion was a bit of a disappointment. They have been able to create an awful lot of jobs as their online sales have taken off and their warehouses have been busy. Lets move on to alphabet. Facebook, twitter. Usparaphrase the movie, give the good, the bad and the ugly. Su lets take a look at the afterhours chart and you can see for yourself how it lines up. Googled beat across the board. Facebooks revenue held up. Faces uncertainty ahead. Twitter was down double digits. S in reaction to its growth. Lets start with google. Fact do with the [indiscernible] they had strong ads. Costs rose 12 . Googles cloud and the youtube ads played a big role in the strong performance. Lets move on to facebook. Casebooks facebook posted sales that jumped on the ad revival. A bit of concern for shareholders afterhours. What we remember is there was the july boycotted by a lot of advertisers against facebook. That apparently had barely a dent in thirdquarter results. Facebook tends to rely on a lot of smaller advertisers who do not have as many options as the Big Companies so they continued to fuel facebook. You also had zuckerberg saying he is excited about gaming Going Forward. That has been a big area in the pandemic. Lets talk about twitter. Daily users were 187 million in the Third Quarter. It is a small gain. It is 8 million fewer than analysts estimated. Note thatarticularly is a disappointing number considering we have had a return to online sports. We have a u. S. Election just days away. All of that tends to boost engagement on the platform. The fact they had a disappointment in users early weighed heavily on twitter. Relatively broad strength in these reports but not as strong as investors were anticipating. Most of the shares were down or flat afterhours. That is interesting in how it sets of the friday session in the u. S. Haslinda su keenan in new york with that slew of tech earnings in the u. S. Bay took a tumble analysts disappointed. In lowchandise growth double digits compared with 21 in the Third Quarter. The president and ceo is staying upbeat about the prospects of becoming of the coming Holiday Season and then nonnew in season category. 21 tmv growth. 26 revenue growth. Dded active buyers we really feel wellpositioned for the Holiday Season. All kinds ofat in economic times. When times are tough, great values on the platform. When times are well, people want to shift to ecommerce and come on the site. Why do you think investors are not pleased with your quarterly guidance for next quarter . To bew we are not going hopefully locked in as much as we were in march time, but how do you prove to them the growth you can hold onto and sustain . We are in such a dynamic environment right now. We were going on our call yesterday as france was shutting down. We are seeing changes in germany. What i feel great about is that our strategy is right on. We are defending our core business. We launched new verticals. We are going to the 500 billion addressable market. Sorry, high Single Digits and low double digits in terms of penetration. There is lots of opportunity on a go forward basis. I want to dig into that nonnew in season. It is all about looking into collectibles, high end coffee machines you get refurbished. You talked about a phenomenal addressable market. What is the opportunity for you . It has been the core of ebay. The core of ebay is the amazing fines. E have so much opportunity it is more than 50 of r. G. Mv and it has a lot of growth potential. We are investing in a lot of specific areas. We announced a new experience in washington in watches where we are authenticating watches. We are adding new buying channels and we are seeing great early results. While that took us months to build, weeks later, we put the same experience in sneakers. A huge growing market for us. We are going to be authenticating every sneaker sold on the platform. Then growing tall sneakers paid growing tall sneakers. They bring on the millennial consumer. They not only by sneakers, they buy across the site. They end up buying in 10 different categories. By investing in this area where ebay is really unique because of our global footprint, we think we are on the right strategy. I know you have spoken passionately before about the seller, about your relationship with the seller and ensuring they keep coming back to the ebay platform. I know you have been striking deals with the u. S. How do you see the Holiday Season unfolding for us getting our packages . The average household has 4000 of items they could sell on ebay and less than 20 of that is online. It is a great opportunity for us to bring in the consumer seller. This is a great time. People are having to spend more time at home. They may need more cash. Ebay is there for them. What we see is when a buyer comes on and tries selling, they become twice as valuable as a buyer because they have tried both parts of the marketplace. We are leaning into consumer selling and making that a big focus. We have 19 million sellers on the platform and looking to continue to grow that. The ebay president and ceo. Approving lg chairman a plan to split up the battery business, cementing the status as a key player in the powertrain market. This is bloomberg. Investors have approved a proposal to split up the battery business. The largest battery maker and tesla supplier ofo lyons unit for now. The transport reporter joins us now. Managementin for the because some were against it. This is definitely a win because the whole purpose of to explain the battery business, they want to see the business as a standalone so they can get investment. Going forward, this company will need a lot of funds to expand capacity. By being a standalone company, they can benefit from that 100 . Why is lg chem splitting its battery unit . It is all about keeping its Market Leader position owing forward. They will need to put more money to invest, increase capacity. They can only do that at a full benefit if they are a lone Company Rather than being part of other divisions as well. We talked about opposition initially. It is opposition from small investors. They are pretty disgruntled by this move. They are a bit upset by the whole fact that they did not do a spinoff, which means that the shareholders would get some shares of the new company when they spinoff. They decided to split off where old 100 and down the road, they will do an ipo. They were upset about the fact they had invested in the company on the outlook of the battery business than anything else. Rishaad the asia transport reporter. Chinas communist party is unavailing its party. Cbc officials talking now in beijing on this plan going to 2035 saying china needs to reform and open up an innovation of the important goals. Also saying they are going to continue to open up despite the external environment and on top of that, a complete decoupling is not realistic and is bad for the world. That is the message. This is bloomberg. Haslinda it is almost 11 00 a. M. In singapore and hong kong. Welcome to Bloomberg Markets asia. Rishaad this is a look at top stories. China releasing the top lines of its fiveyear plan, promising to build a tech powerhouse and emphasizing quality growth over speed. Selfreliance will be a strategic National Pillar. Focusda tech stocks in and fresh concern about the future. Many businesses look to china to leave the post virus recovery. We discussed the outlook with the World Gold Council. Haslinda lets take a look at where markets are at this point in time. We made it. Asian markets are continuing to be under pressure. Fresh concerns about the virus as well as the outlook for tech. Taking a look at tech, infotech down. Conductors, software services, hardware all down. Futures pointing to a lower. Gold inching upwards. Still below the 1900 level. A look atets have what is going on in bangkok. The market just getting underway. We have a slight gain. Advancing the most in three weeks in the last 24 hours. There are concerns over these recent protests easing. The government upgrading the economic outlook. India, we the open in could see a little bit of a quieter, perhaps slight down start to the trading day. We have four nifty 50 constituents. With that in mind, lets find out what else is going on as we head over to new york and get to Karina Mitchell who has the first word news. Karina china has released the first glimpse of its fiveyear plan promising to build a tech powerhouse and emphasize quality speed. Over initial details from the communist Party Central committee stressed the need for sustainability and a robust domestic market. The plan elevates selfreliance to a National Pillar but there is no guidance on the desired pace of growth. Coronavirus numbers continue to surge in the u. S. With a daily record of 86,000 cases. Just days before the election. Infection numbers also rose in new york and new jersey. A new report says the death rate for covid19 is higher in upper income countries, which tend to have more elderly populations. College sayslondon meanwhile, germany says it is sending a wakeup call to you leaders saying they failed to leaders saying they failed to move fast enough on the coronavirus. Angela merkel says leaders must line the lesson and act more quickly. Bank ispean central offering a strong hint that new stimulus is coming. The Ecb Governing Council is holding its Bond Buying Program through at least next june but says it will not halt support until the covid19 crisis eases. The council adds that new forecast in december will not reveal plans for a Single Market support. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Karina Mitchell. This is bloomberg. Rishaad uncertainty remains elevated to say the least. Global stocks on course for the worst weekly decline since june. It is amid new lockdown measures and the deadlock over a u. S. Fiscal package. Our next guest feels the main thing to focus on is the unprecedented policies. Lets bread i lets bring in the head of aipac shares at blackrock. Tell us about this new change we are witnessing. Happyd morning and friday. The last point you mentioned in terms of the policy revolution, in terms of how we think about this now with the global Interest Rates add zero or negative, it is difficult for Pension Funds to find any income. Difficult toe generate returns into the future. What has happened is investors have to take a choice of whether they continue to invest as they always have and expect low returns or take more risk to generate higher returns. It is specifically in the fixed income market. That is what we have seen with a huge inflows to the highyield space and investmentgrade space as well. Haslinda you mentioned highyield rishaad you mentioned highyield but that has inherent dangers in the nature of what youre talking about. Tell us about the search free yield. Search for yield. If you look at equity risk premiums, i would say little more progress in terms of equities, especially if you look at dividend yields. I think that has driven a lot of inflow into gold up until last month because historically, the issue with gold as it does not yield anything but it is a storage of wealth. Wielding nothing is not much of a headwind. These days, yielding nothing is not much of a headwind. This does become an area where investors start to take risk and look more towards the equity market to try to generate those returns. Affect how does that the fund you have at the moment. Are you seeing more demand for them . Are you also seeing a let every dem shins . Are people a lot of redemptions . Are people putting money on the sidelines and taking it out and doing that yet and doing that . We have seen over the last two years that market money funds and cash funds have been high. What we are seeing with the volatility over the last week and probably since the first president ial debate on september 29 is more they rotation, money , adam u. S. Cyclicals technology specifically and into places like out of u. S. Technology specifically and into places that have been a little more under pressure and offer better value. More money moving into the china tech space. , this mentioned earlier idea they are going to continue to support the Technology Market in china. I think investors are starting to realize with the divergence of u. S. And china economies, they will have to own both u. S. And china tech. That is something we are starting to see particularly in the hang seng tax basis. Hang seng tech spaces. Haslinda where do you see mispricing . I do not really think there is mispricing anywhere. If you move back to Interest Rates being zero, valuations will move higher. That is generally what happens with discounted cash flows. I think probably, technology is quite expensive. With Interest Rates so low, you are being enticed to go into those areas because investors are expecting rates to be lower for longer. For us, it is not really about where it is undervalued. It is more about having a balanced portfolio. Where you take your risk . Probably places Like Technology growth. Where do you balance that out with income whether that is the highyield space or places like gold. Also, where are some of the tail risks . Risksnk some of the tail are and in stash are a spike in inflation particularly in 2021 if you gave democratic sweep and what and what that might mean for the fiscal package. Haslinda you talk about a rotation out of u. S. Tech. Where in asia do you think money will advocate towards . Something i have been talking about for some time. It is not that owning u. S. Tech is a bad idea. It is quite the opposite to the issue is more around is quite the opposite. About about overweight u. S. , overweight u. S. Tech. Investors are starting to realize they need to own china tech as well or china as a whole. Globally we know is investors in emerging market portfolios have been underway. Msiite the inclusion in an benchmarks. I think that is something investors are starting to tackle now, putting more allocation toward places like china. We have had a strong preference for north asia as well. That is really where the rotation is happening at the moment. In order for us to see a huge rotation back into value or cyclicals, youre going to need Something Like a viable, efficient and distribute double Covid Vaccine. Distributable Covid Vaccine i think that will be a large. Catalyst distribute double Covid Vaccine. I think that will be a large catalyst. Haslinda thank you for your insight. Have a fab. Weekend still ahead this hour, the World Gold Council sees demand for the precious metal falling toward its lowest quarterly total in more than a decade. Next, more details coming out on chinas economic priorities for the next five years. Asking what the emphasis on quality growth and the pivot toward tech will mean for the rest of the world. This is bloomberg. Rishaad 12 minutes past 11 00 in beijing. Partys ruling communist outlining the plans of its 14 year plan. The full plan will not be released until march. There have been many comments being made about what is going on. They are talking about the coupling the United States and china. Saying it is not realistic and it is bad for the world. The deputy in charge of routine work saying that in briefing. So saying china will stick to opening up matter how the external environment changes. They need a proper external environment to reach their vision for 2035. The whole emphasis being put on technology and innovation, which this body is saying is key to meet those goals in 15 years. Haslinda lets get perspective. Bring in our chief asia economics correspondent. What extra detail did we get from this press conference . We have had some sweeping rhetoric on chinas technological ambitions. Ofrive to have the kind Homegrown Technology that they need in china. Clear at onee point they are talking about the kind of technology they would find to get in other parts of the world. We know what the backstory is. The u. S. Has been clamping down hard on trying to restrict chinas access to the kind of technology it needs. More specifically, chips, of course. It is all about innovation. It is all about hitting new frontiers. They said they are not closing the door. They said china needs the rest of the world and the rest of the world needs china. Ready ambitious rhetoric. Pretty ambitious rhetoric. Also as well, it is a bit light on detail. If we look at it overall and the communist no doubt have poured over every word, what is their overall take away . Quite right. Get to the we skepticism on how this will be achieved, this plan has just been signed off by the top official. Her phasees into anot of development. Here now, the takeaway among economists are they are seeing this emphasis on quality growth over pace of growth. That is an idea that has been around for a while. It sounds like it is getting more codified. Necessarily obsessed with gdp targets. It will be more about sustainable growth. There is also a push on means aent, which greater opportunity for green energy and the like. There is commentary not just around technological innovation but chinas plan to continue to boost per capita income levels in the economy and drive towards what it is calling a modern socialist economy. They are light on statistics. Plenty of challenges and skepticism for how this will be achieved. In terms of broad brush strokes, it is an ambitious outlook for china. Rishaad good stuff. Betweene game has begun democrats and republicans. We have Steve Mnuchin blaming nancy pelosi over the lack of a deal on the fiscal package. We will have to hear what the speaker of the house of representatives has to say about it. Nancy pelosi, we hear from her next. This is bloomberg. Haslinda washingtons blame game is escalating. Treasury secretary Steven Mnuchin accuses nancy pelosi of holding up a new relief bill after she demanded a response on certain sticking points. Pelosi where to raided the need for more stimulus even as the economy expanded. It is proof we need the stimulus even more so. The reason we had a beckon a ar Second Quarter better Third Quarter is because what we did in the cares act. Following subsequent legislation , which put money into the economy. That is going to wear off and we need another infusion. It is not a question of we do not need it. It is a question of proof that it works and now we need it more. Happened innd what the Second Quarter was so horrible. You know that. We have come part of the way back from that and we have to keep on the way Going Forward rather than sliding back i not having another sliding back by not having another covid injection of funds into the economy. You have such an important say into the economy and how it is governed and where it goes. How do you make sense of the numbers . The gdp number came back strongly. The stock market has been doing fairly well over the last few months. At the same time, we have 11 Million People unemployed. We have stories of people having extreme difficulties. Do we have two economies going on in this country . Let me say the number i think is staggering it we have more people unemployed and more people on Unemployment Benefits than any time in our countrys history. We know the fed is shoring up the market so that the stock market can do well. I do not complain about that. I want the market to do well. Just because we have come back some points this morning does not negate the fact we are left 1900 points down the past four days. Facted is reacting to the that the virus is spreading. Excuse me, the markets are reacting to the fact the virus is spreading. It is reacting to the fact there is no agreement to nj the resources necessary to support to inject the resources necessary to support the life of our democracy as i say over and over again. We do need that public role once again. We needed for state and local government. State and local government according to the wall street journal said this is the biggest cash crisis for the state and local government since the great depression. Some people may brag about an indicator saying this, but we have to wonder what it means in the lives of the american people. All of the things we have in our legislation are stimulate to the account are stimulants to the economy. If youre talking about unemployment insurance, food stamps, direct payments, youre talking about all those things, they all are stimulants. People will spend because they need to, inject demand into the economy and create jobs. Rather than what it does for trickle down to have 150 billion going to the wealthiest in our country. That is the discussion we are having. We are at a fork in the road because the path the president is taking has been deadly. When you think youre approaching 9 Million People and nearly a quarter of a million dead from this, 8 Million People falling back into poverty because the cares money is running out. Foodllion children insecure in our country. Millions of those families on the verge of eviction. The list goes on and on. And the virus continues. We have to crush the virus in order to open the economy and open our schools. The president has taken us on a deadly path. We have to go down a different path. House Speaker Nancy Pelosi speaking to david westin. Lets have a look at some of the latest business flash headlines. Apple shares fell by more than 5 after hours. That as the iphone sales missed estimates and revenue in china slumped. Sales until the end of september came in at 55 billion. Iphone fit iphone sales fell 21 as people waited for the delayed iphone 12. Apple has given no guidance for the holiday quarter, which is it number one. Amazon is picketing a steep jump in sales for the current quarter, expecting demand to extend to the Holiday Season. Amazon saying it does it expects revenue to be as high as 20 billion. That would Beat Estimates of 112 billion although it warned operating costs would be higher due to covid19. Facebook has a huge day. Facebook posting better than anticipated Third Quarter revenue. Despite a major advertiser boycott. Sales rising 22 . Slightly above the average estimate. The social network saying it had two and threequarter monthly active users. Time for the morning calls. Some of the top analyst calls and recommendations. We are tracking for ages today. Here is a call for labor economics. Retreat in october as this would reflect a longer golden week holiday this year. Not a loss of recovery momentum. A Consumer Spending blitz over the break may have boosted activity in the nonmanufacturing sector. What do you have . Westpac. Looking at more downside for the euro against the american counterpart. Economists at the bank saying the eurodollar may firm within its 115 and 120 range. Also a lot of that down to the European Central bank. Against this backdrop of the covid19 cases on their way up and restrictions also, which the bank suggests code cap any big euro gains taking place. 1. 4 percent of its value moving about 1. 4 of its value. Lets kick it out to what is happening with china with regards to what we got as we go to the lunch break in shanghai and shenzhen. We have been hearing that plenum. Some of the basic themes emerging about quality over quantitative growth. One of the mantras coming out. We will hear more in march when the full details are released. They were also talking about turning china into a technological powerhouse and at the same time saying it is unrealistic to assume there can be a total decoupling between china and the United States, saying it would be quote, bed. That is a look at quote, bad. That is a look at markets. This is bloomberg. Rishaad a hazy start to the last trading day of the week in mumbai. A temperature of 28 degrees centigrade. The nifty down a fraction. Looking at a flat open for stocks. In india a lot of Companies Still coming out for their earnings. Out what is going on elsewhere and have a look at some of the first word headlines and join Karina Mitchell. China. We start in it has released the first glimpse of its fiveyear plan promising to but a tech powerhouse and emphasize quality growth over speed. Initial details stressed the need for sustainability and a robust domestic market. The new plan elevates tech selfreliance to a National Pillar but there is no guidance on the desired pace of growth. Thailand is revising its Growth Outlook saying the economy will shrink by less than previously forecast. Virus relief measures alleviate the impact of the pandemic. Tourism and the wider economy have been devastated by the virus the government sees a contraction of 7. 7 , down from a decline of 8. 5 forecast in july. Two american men accused of form accused of helping the former san chairman escape hours before Michael Taylor and his son were to be put on a plane to tokyo, the judge decided to allow for more time for an appeal. Macronpresident emmanuel has promised to stand firm in the face of his lummis of islamist extremism after three people were killed in nice. He is increasing the number of soldiers assigned to antiterrorism duty from 3000 to 7000. The attacker has been identified as a tunisian national. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Karina Mitchell. This is bloomberg. It is a risk off friday. Asian markets under quite a bit of pressure on the back of losses in the u. S. We have fresh concerns about the outlook for technology giants. Uncertainty remains elevated heading into the november 4 election. Down by as csi 300 much. China aiming to be a tech powerhouse. Not comforting investors at this point in time. Sentiment is negative. We have the yuan at 668. Futures inching upwards by half a percent. 18. 77. It is set for a monthly run, the worst monthly run since 2019 as investors await that election. The World Gold Council says demand for gold could continue to improve. The association believes chinas recovery will lead to Greater Consumer confidence. Lets discuss that more with the head of Public Policy at the World Gold Council which just released its Third Quarter old demand trends. Lets pick up on what you said about china expecting demand to trend higher. How strong do you think that will be . Good morning. What we have seen over the course of this year, gold demand has declined by 19 year to date. There are a number of factors going on. If you look at investor demand, that has increased by 21 . One of the big drivers in the fall of demand has been consumer demand, which has been depressed fight has been depressed primarily because of covid. You have had lockdowns which have physically prevented people from buying gold. Price,u have a high Gold Investors are more interested in gold but consumers shy away. They tend to perhaps bank their profits and sell gold. We have seen a bit of that in china. China is a huge gold market. It is the Largest Consumer market for gold in the world, jewelry sales in particular. They were depressed in china in q1 and q2. If we look at our q3 figures, it is starting to pick up again. China has done pretty well in dealing with the coronavirus crisis. They have exited the widespread lockdowns we saw in january and february. They have come out of this better than most others. That is reflected in our figures when we look at consumer demand, which is starting to pick up again. When you look at investment demand, this is where it is quite interesting. Investment demand is up year to date by 21 . A lot of that is being driven by Institutional Investors allocating to gold through etfs, which have added about 1000 tons this year. That is over 25 . There are a number of reasons for that. There are two main drivers. One is economic uncertainty. Covid, we do not know what the result will be like. Shapeds talk of a k recovery. All that means is we do not really know. We do not know what the timing of the recovery will be. That leaves to increased uncertainty. When you have a lot of uncertainty in the system, that is when Institutional Investors allocate to gold. The second major factor is the low Interest Rate environment. Ernment stimulus packages some governments have committed near 20 of their gdp. On balance, how does it look for gold . You say demand for investors but demand for physical gold is actually quite weak. Allocate to physical gold. Investment demand what drives the gold price . There are number of factors. You have consumer demand and investment demand. Tends tot demand offset any weaknesses in consumer demand. When you have a low interest and negative Interest Rate environment, you tend to see a lot more investor interest. Goldggest drive of performances globally demand is down, supply is also down. It is really investment demand that drive that drives golds performance. It has been one of the best performing as year. There are number of reasons why investors like gold. It is a liquid asset. It is very liquid. Over 145 billion of gold is traded every day. It is a great portfolio diversifier. It has a lack of correlation to other assets. When investors are thinking about creating a balanced portfolio, gold is part of that mix. Me, it is not really the year for weddings. How is that affecting gold demand . How about thailand as well . We are seeing selling accelerate. Gold does the release of gold into the markets make a difference . Not to the same extent. Consumer demand for gold tends to be a more localized market. Thailand is a big gold market. We have seen a lot of selling. That is more of a reaction to the high price. Historically, thai gold consumers when the prize is doing well, they tend to sell. We would not expect that gold will remain within thailand. It will have an impact on the local market price and it is the same with consumer demand in china and india to some extent shared when you look at to some extent. You look at the global market, it is not localized. Institutional investment is global. You will get investors from singapore, hong kong, japan. They will be trading gold all over the world. It is this dual nature. Here, doesry quickly the burgeoning etf market make a difference . It does not distort what is happening. Investment demand tends to offset weaknesses in consumer demand. Investment demand historically has been one of the bigger performances. D it does not distort the market. You tend to see a lot of longterm strategic allocations through etfs. It is considered a safe haven asset. It is a source of emergency funding when you require it but hope not to have to liquidate. Gold as partou use of the Central Reserve and it is central banks. That tends to be longterm holding. I would not say it distorts the market. The way the gold market functions, you have this International Global investment market, but then you have lots of local jewelry markets and consumer markets, which are much more discreet and localized. Historically as i said it is investment demand in terms of uncertainty in crisis that sort of mitigates weaknesses in consumer demand. Rishaad thank you, andrew. Andrew naylor from the World Gold Council. Going to change assets entirely and topics entirely and look at the world of aviation. Airbus was able to halt its cash drain in the Third Quarter by a by providing a platform for recovery. Toasked the ceo about plans ramp up production and whether the worst is over. We are quite satisfied with the Third Quarter. We have delivered what we wanted to achieve, which is no longer burning cash in the quarter. That is what we have achieved. We think we are in the corridor of expectations. I cannot say if the worst is behind us, what i can say is the plant put in place, the plan put in place is what we were expecting. Lets talk about your program, which is the a320. The narrowbody that drives the bulk of the worlds airlines. At the moment, you have production at 40. You are going to continue the n summer of next year. Then you are going to ramp up the circle 47. What gives you the confidence to do that . Your friends in chicago yesterday sounded quite downbeat. They were talking about a new reality. Why do you have the confidence to ramp up the 320 line . We have a very strong product with the a320 family and Strong Demand for that product before the pandemic. As we can see beyond the pandemic, the backlog has remained solid. We have not been facing cancellations. That is a very positive sign from the markets. We are now at 40 aircraft a month in terms of productions. The objective was to converge with the predictions. We will continue to stay at the 40 a month for the foreseeable future. We have in our supply plan a beginningom 40 to 47 of the Third Quarter of 2021 jude it was our earlier of 2021. It was earlier at the Second Quarter of 2021. We have pushed that point in time by one point away. We will continue to monitor. Based on the backlog we have today and the contracts we have with our customers, this would require a rampup in the second half of 2021. We will keep monitoring. We are in a dynamic market. We remain very focused. On the shortterm, we think the rate is a white one. I want to come back to that dynamic approach you are taking. Which regions are giving you the confidence to be able to do this . Is at all china . It is not all china. Good point. China is very strong at the moment. They are back to 100 of what it was in 2019 for domestic flights. It is a combination of what we see globally around the world. When we look at one region or the other one, it is fast changing sometimes with good news. Sometimes with bad news. Prudentto remain locally. Theoverall market tells us rate of 40 seems to be the right vision for the prediction of the airbus a320 family. You mentioned the dynamic approach you are taking to matching production and delivery. That is critical to the kind of cash flow story you have been discussing this morning. How challenging is that to make that happen . Challenging at the outset of the crisis. At the beginning, we are producing more planes then we could deliver. More planes than we could deliver. We had inventories that piled up. Finished butanes not delivered at the end of h one. We are down to 135. That is an important indicator of the situation because what we deliver is now slightly more than what we produce. That is why we have reasonable confidence for q4. That is why we issued a guidance for Free Cash Flow for financing in the fourth quarter. Airbus ceo with our colleague, guy johnson. Lets get a check on the Indian Markets as we count down to the open. Futures had pointed to a lower open. It is opening pretty positive. The rest of asia currently flat. We have earnings season continuing in india. 14 of the 27 nifty 50 companies have announced results and 12 have missed predictions. We have the Indian Markets changing direction in line with the rest of asia. It is in negative territory. Looking tome, sabotage and it will not come cheap. This is bloomberg. It is set to be one of indias biggest divorces. End itsp looking to decadesold relationship in a swap that would seen a divest from the private Holding Companies to the public ones. Worth 24the stake is billion. What did they want exactly . To end thet 70yearold relationship. They feel that would be better for both parties. For 24 billion dollars worth of compensation. They areasking asking for their share. They wanted a similar share allocation from unlisted entities. Case the cashg in settlement is tough, they can go further so that will be easy for tata to list it. They have given a detailed filing towards the code. Earlier, it was around 20 billion. They are saying it was 24 billion they will have to give to part ways after severing their ties after 70 years. Well, whatll me as is the reaction from the tata group . What are they saying . They have reached out to tata. We spoke to a few sources. They do not want to part. Companies like tata motors , etc. Saying they are unlikely to accept the offer. They are saying they might seek some more time to reply. Lawyers and sources are saying that tata is unlikely to accept stakefer for 24 of within the entities. Rishaad thank you very much indeed. The reportsa are being seen as a touchstone for chinas wider recovery. We will have a preview for you. That is on the way. This is bloomberg. A quick check of the latest headlines. Ant Group Continues to make headlines. Is online subscription equivalent to 2. 8 trillion, a record for the a share market according to bloomberg calculations. Self trading accounts for the online offer have top 5 million. A record for shanghais market. Is surging after it received a takeover approach. It is in early talks. They said in statement discussions already very preliminary stage and there is no certainty a deal will eventuate. There are no indications of the value of the bid. They have a market value of more than 3 billion u. S. Dollars. Exxon mobil plans to slash its 15 by theforce by end of 2022. Reported the worst string of quarterly losses since the takeover of mobile in 2029. Shares jumped by as much as 5 . We have got china rick China Construction Bank picking off the port cards from mainland lenders, which wrapped with results from big bank, bank of china and bank of communications. Lets get to our chief north asia correspondent. What difference does ccbs results tell us about the health of chinas big state lenders . Health is an interesting word. These poor state lenders in china. When things are going well, they tend to get favorable treatment of course from the government. When things are going bad like through the pandemic on the first half of the year, they were enlisted in the government through the banking and insurance regulatory commission. They basically had to curb profits. That is not a great thing for investors to embrace. If you are being forced to curb their profits. That has seen a rise in nonperforming loans and bad credit across the board. What we are seeing in the Third Quarter is since the relaxation of those restrictions numbing from the cbrc, that maybe these banks which have been unloved on the markets are starting to current starting to turn a corner. The number two big bank in china reported first yesterday. Fit was down 4. 1 . We are seeing a rise in credit losses. Grew 42 . Provisions grou 20 erforming loans grew there are. There are still issues to resolve. About what is expected today from the other four including the largest one . Marge of the same. More of the same. Similar situations. They were all pretty much asked small government to help struggling businesses with lower Interest Rates as well as rolling over some debt. They are faced with the same kind of problems. They might be turning the corner in this recently completed Third Quarter. Look at icbc. Problem loans likely rose 12. 4 in the first half through the pandemic when they were forced to make those concessions. Add bank, loans likely jumped 11 . Bank of china exposed to overseas lending and bad loans. Problem loans outside of hong china rising by 82 shared nonperforming loans rose 16 . Within china, 6. 7 . One bright spot. Postal savings bank, 13. 5 gained in thirdquarter profit. There are some bright spots. Haslinda stephen engle. Thank you for that update. Lets do a check of the market for we go. Asian markets still under pressure. Concerns about the virus and tech. The kospi down 1. 3 . It is a tech story. Lg chem falling. Rishaad going to leave things with hong kong. There you go. That is Indian Markets as well. The following is a paid program. The opinions expressed do not expect those of bloomberg lp, its affiliates, or its employees. The following is sponsored by humana. Life keeps changing, and so do you come about as your lifestyle evolves, does your Health Care Company treat you as an individual or a number . Medicare advantage plan m s