Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

Investors see less chance of new regulations, equity futures writing rising in tokyo and hong kong. In china tries to reassure the Business World that it is open to trade. Concern of the moran sealer approach. Shery breaking out of south korea. We are getting the currentaccount surplus in south korea for the month of september, widening to 10. 21 billion. We had seen a previous surplus at around 6. 5 billion. This has widened to over 10 billion. The goods surplus coming in at above 12 billion. We have seen continued surplus for the current account in south korea. Consecutivee a five months surplus, not to mention exports in october contracted a little, but in september they rose for the first time in seven months. South koreag pmi in so weoday twoyear high, are getting a widening of the surplus. Haidi pcb numbers crossing the bloomberg, betterthanexpected, eating the analyst estimates on the bloomberg, Third Quarter 1ome coming it at just billion, better expectations than 850 million. A key watch, given we did expect deterioration in asset quality on account of the lockdown in the impact of the pandemic. The infield ratio at 1. 6 . Quarter, 350 million sing dollars. The largest singapore lender also explodes better that reports betterthanexpected results in the Third Quarter. It looks like we are seeing improvement in momentum facing Foreign Investors despite the pandemic leading to more provisions. Lets look at the market open with Sophie Kamaruddin looking at sydney first. It to we are watching see if gains on wall street continue in asia. After hours, gaining ground nearly 2 . Asx 100 opening little changed, some under pressure, bhb group falling. 7 . We are watching bank profits tumble at the Australian Dollar slipping, with yields holding a threeday gain about 71 after we saw the greenback slip on markets awaiting u. S. Election results and stimulus optimism. Also on the radar, alibaba results and the ipo getting pulled will be a big topic for sure for investors. Day,pan, is he earning nintendo among the companies reporting. Nikkei futures in chicago are edging higher. Midyen is trading steady at 104 levels. U. S. Futures moving to the upside ever so slightly. I want to highlight the british pound, under pressure amid speculation of more qe in u. K. , which could be 150 to 200 billion pounds, according to reports. Shery joe biden opens a clear path of clear path of the white house with crucial wins over donald trump in wisconsin and michigan, closing off path to victory in those states after claiming victory. After a long night of counting, it is clear we are winning enough states to reach 270 electoral votes needed it win the presidency. I am not here to declare that we here to, but i am report that when the count is finished, we believe we will be the winners. Our government reporter joins us from washington. Greg, just a couple of minutes ago we heard from the Supreme Court telling democrats to respond by thursday to President Trumps challenge to those latearriving balance in pennsylvania. Greg the Trump Campaign was to intervene in pennsylvania, where a lot of boats were cast by mail. During the pandemic, this was a popular option, especially among democrats, who preferred the vote by mail option more than republicans, who on President Trumps urging, voted more in person. That was more popular for them. At the Trump Campaign wants to get rid of the rule set by the pennsylvania Supreme Court, that allows these mail in votes to be tallied and received as late as friday, three days after the election, so long as they are postmarked by election day. He has an objection to those votes. But it is not clear if this can succeed. Vital tonia is President Trumps narrow path to election, and joe biden is just six votes away from the 270 electoral votes needed to win the presidency, which he can do if he wins the state of nevada. He does not need pennsylvania to win the presidency. Haidi how concerned should everyone be about this drawn out process, and the legal implications the Trump Administration is setting up at the moment in a couple of states, as well as prospects of a potential recount . Greg it depends on the margins in the states. A recount can be triggered if the margins are very, very tight. It is not clear to me in the states that matters if the margins posted will trigger recounts. In some instances, you can ask for recounts regardless of margin. American elections are very the to just very litigious. We sometimes have efforts to intervene in ballotscounting cases like this. It is not unusual to see lawsuits filed and closelycontested elections like this. Cant help but point out, what is happening with polling . The expectation was consistently for a blue wave at least, or an easier path for joe biden, not to mention the senate does not look good for democrats. And in the house, they lost a few seats. Reg greg that is right, republicans over performed in the election, President Trumps struggles notwithstanding. Even though President Trump is not lee is not likely to win reelection under current projections, we are seeing republicans will almost certainly hold the majority in the u. S. Senate. Democrats expected to win a majority in the u. S. Senate, and in the house, democrats expected to increase their majority and give them a strong a hand in the chamber. But republicans are going to pick up seats, which is going to weaken the negotiating power and political clout of nancy pelosi somewhat. Haidi potentially, that coming under threat in terms of that leadership. Greg, really appreciate your time, bloombergs greg giroux. Bloomberg subscribers, for more, your terminal. Cash trading is just beginning in sydney, the National Seeing theank, upside,. 9 , pretty much trading at the highest apples we have seen since the start of this month. Slumping thanks to the coronavirusinduced recession as we saw a swelling of baddebt charges. Rounding out this season for australian banks in general, it looks like investors are expecting a pretty swift recovery, or at least the removal of uncertainty with those numbers. Lets get you to Karina Mitchell in new york with first word headlines. Karina china is reassuring the world that its new fiveyear plan holds no barriers to open trade. Hisident xi said dualcirculation strategy does not imply china will become more insular. He says the plan is a more open relationship between the mainland at overseas markets and dentists it will benefit nations around the world. Continue tol improve its legal system concerning overseas affairs. We will strengthen the potential that the protection of intellectual Property Rights and the legal rights of Foreign Investors. We will be building a more favorable Business Environment to provide better services. Karina meanwhile, financial regulators in china say they support the holding of ant ipo. s the group says the move protects investor rights. The move comes just two days before the listing was expected to raise a record 35 billion. At the house of commons votes in favor of a new lockdown in england as Coronavirus Infections continue to search. Go into effects thursday and will see all nonessential is this is close. The u. K. Has europes highest number of reported virus deaths, with more than 47,000 premise to Boris Johnson has warned of mortality under on a greater scale. Global news, 24 hours a day, on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Back to you. Shery and we will have more analysis on the election impact i had, with joe biden seemingly on the brink of victory. We speak to the American Chamber of commerce in china about navigating tensions under a change of president s. But first, we speak to td securitys priya misra on how this will play out with rates. She joins us next. This is bloomberg. Haidi the prospect of a antested election and lack of stimulus package, driving investors into treasuries, the 10year yield falling the most since april, dollar also will be coming under uncertainty. Ed of global that td Security Rate strategy at td joining us is the atd of global rate strategy td security, priya misra. Of a the prospect potential Biden Administration without securing a majority in the senate, and therefore policy are alices and the fed may have to do more . What are implications for treasury . Priya exactly to your point, the markets are not pricing in divided government, very different the way the rates of market was positioned heading into the election. I think we were pricing in a quick resolution, the market was pricing in a quick resolution. If you look at the 10year, we went from the 60 basis point rate that had been in since april all the way to october, and that moved closer to that 90 basis points, almost a 1 range as the market started pricing in much more supply. We were going to get this covid package in the lameduck session potentially as high as one trillion potentially as high as 2 trillion, or some other spending plan under the blue wave. I think we must question both those assumptions now. It is not obvious that the legal sidesnge and the two calling foul on the election, that they can actually get together and come up with a covid package in the near term. And in the longer term plan, with the senate in republican control, i think the senate is a very big market mover, the fact the senate is staying under public and control. It implies less stimulus. That is the way that is why you are seeing the way the treasury market reacted last night. Right after florida, we saw things declining, continuing through the day. Even though equities have taken this in a positive light, rates are telling you we have got macro concerns. End in the background, covid cases are right easing. Covid cases are rising. You brought up the fed, we have a fed meeting tomorrow and i think the fed stays accommodative. But rates are already low and markets are functioning. So while they can keep rates low, i think the market is now saying the economy needs more fiscal help. And that is going to be much harder to get. That is why Interest Rates have been declining, led by the long end. All the deflation trades are being taken out. I think the rates market has a more negative macro outlook after the election outcome. Consistently, whether you look at the equities rally or yields on the longer thisr break even, all assuming we are going to see a jumping inflation. Is that story murkier than ever . Priya absolutely. Because a lot of that was predicated on fiscal stimulus. And if that is going to be much harder to get, than we have to go back to the fundamentals of the economy. In this way, with everything, we have payrolls also. Our economists already have reason they the have this weakening payroll report already is because the fiscal support waned. The macro environment is still challenged, and if you are not getting this additional preemptive fiscal support, that is when that inflation question balanced. So i think it makes it easier for the fed in the sense they can keep rates low for a long time, but i am not sure that is exactly what the economy needs if we have to get people out there spending, and companies retaining employees. So that really needs that fiscal support, which looks partner after the election outcome. Shery despite the bullish reaction from treasuries, we didnt see the 10year old 10year yield breakthrough that 75 basis points. Could we see more pressure on the 10year yield . Priya i think so. Think the equity market today reacted to the fact that maybe there wont tax increases, maybe there wont be that much regulation, but when we realized this might be a contested election, which means if they are still debating until the december 14,ate, and we dont have an election outcome known then, how are we going to get a covid phase for package done before the year is out . That gets pushed back to january or february. As the market starts pricing that, in europe they have lockdowns, no lockdowns in the u. S. , but that is a privatesector response to rising cases. If the equity market starts struggling, i think absolutely rates anticline, and we can go back to the 60 basis points level. Shery what happens to the dollar . You mentioned all these uncertainties with covid. Priya last night, the dollar try to rally because safe haven generally brings demand to the dollar. But mediumterm or longterm, we are in the weaker dollar gap. In the view that biden is likely to be more multilateral in his approach, this is better for global growth, and you know that America First policy unwinds a little, so that is one aspect which would be negative the dollar. Plus the macro environment, without as much physical support, it is not clear the u. S. Is going to outperform on the growth front. Therefore, we think the dollar should continue its path and if there is a short term pop in the dollar, we continue to see the dollar weaken. Global headcurity of rate strategies priya misra, thank you. One highprofile democrat believes the stock market today endorses a divided government that is unlikely to crack down on big business. Waveys the lack of a blue means there would be less aggressive regulations. Regardless of the outcome of the president ial election, we are going to have divided government because the house will remain in the hands of the democrats, it looks highly probable the senate will remain andhe hands of republicans, we will have either President Trump or Vice President haydn as our president. What is happening today in the markets is an endorsement of divided government. I believe that if biden is elected, or President Trump, that it means a smaller stimulus package then we might have we might have gotten preelection, when republicans would have been more inclined in the senate to help the president. Elected, there will be support for a large package in the presidency and in the house, but my guess is the senate will, Senate Republicans will revert to their fiscal conservative roots, and the package will be scaled back substantially, although still some stimulus. Been a memberhave of the administration and your wife served in the carter administration. When you look at the Democratic Party moving forward, what comes next for the party . Think both parties will have a lot of soulsearching, as they have been doing for the past few years. In the democratic already, there is active discussion, certainly carried forward in this primary season, when you had more than 20 candidates, as to whether we in nationalff politics putting forth leftcenter or centerleft candidates. That happens to be my view. I believe that if we put forward a true, cardcarrying we wouldnt be sitting here hanging on a razor razors edge on who is winning. It would probably be over in President Trumps favor. Ended the republican party, if President Trump does lose, there will be an interesting debate among those who have become strongly allied with his form of politics, which is not particularly fiscally conservative or traditional republican by any stretch of the imagination, and those who want to revert back to the center right roots of the republican party. That will be challenging for the republicans, because President Trump clearly is still extraordinarily popular within the party. So it is not clear to me that candidates walk away from him or repudiate him, or certainly his policies, will be embraced by their party. We live in a world where, because of gerrymandering, many of our states and certainly in many congressional races, the primary is the general election. And that tends to encourage people to go to the extremes, rather than toward the center, which is unfortunate. Alert we are getting an across the bloomberg. The pennsylvania governor is saying it is a good sign counting is taking longer. He has said he expects to count hundreds of thousands of balanced account tonight. Pennsylvania is also warning it could be days before ballots are fully counted. One of the states with a big , as joe biden has 200 64 Electoral College votes, getting him close to the 270 threshold where he would declare victory. But at the same time, we are seeing the Trump Campaign launch lawsuits in pennsylvania, one over access to counting on the other to stop the counting of latearriving mail in votes. Much more to come here on daybreak asia. This is bloomberg. Shery quick check of latest business flash headlines. Uber and lyft search the most in months after voters in back ania turned attempt to classify drivers as employees. Proposition 22 was funded by Gig Economy Companies. The ridehailing companies along with doordash, and post mates, raised twice as much money as their opponents. Ford sales fell last month, down 6 compared to when industry gain of 1 . Deliveries of the critical f150 pickups dropped 4 taylor . 4 . Ford sold 900,000 fseries trucks last year. Ford stopped publicly reporting Monthly Sales two years ago after gm switched to quarterly numbers. Slew of has approved a incentives to promote local production of electric vehicles. Benefits include a threeyour tax holiday for manufacturers of plugin electric models and an eightyear Corporate Tax waiver for makers of vehicles that run on batteries. This is bloomberg. Im dough hirsch. You may already know that goodrx can help you save up to 80 on your prescriptions. Unfortunately, Many Americans cant get to a doctor right now. The good news is that for many Health Issues you can see a doctor online. Its easy. Just go to goodrx. Com and with a few clicks youll be treated by a licensed medical professional all from the comfort of your own home. Visits are confidential and affordable. Need a prescription . Your doctor can send it to your pharmacy or have it mailed to you. Get the healthcare you deserve at goodrx. Com. I feel like were forglet me check. Ing. Xfinity home gives you peace of mind from anywhere with professionally monitored Home Security built around you. No, i think were good. Good. So when youre away, you dont have to worry. The tent. We forgot. The tent. Except about that. Xfinity home. Simple. Easy. Awesome. Hey look, i found the tent get xfinity home with no Term Contract required. Click or call today. Karina this is daybreak asia, im Karina Mitchell with first word headlines. President ial remit results remain unclear with both sides claiming they are on track to victory. Joe biden says he will win when all the votes are counted, while President Trumps casting doubt on the veracity of mailin ballots. Biden has one michigan and wisconsin and the president s team once a recount. The Trump Campaign has filed lawsuits in pennsylvania and michigan to contest the vote counts trending toward joe biden. They allege they havent been given access to vote counting locations under state law. Saysrump Campaign Manager his team was not present while votes were being counted. Will sue. Ent says he Senate Majority leader Mitch Mcconnell says he wants a new relief package before the end of the year. Election results suggest democrats will lose some leverage in congress, and with chances of a blue wave now diminishing, smaller stimulus is now expected. Mcconnell says he supports funding for schools and small businesses, but not the sweeping proposal democrats want. Global news, 24 hours a day, on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Haidi. Is trying to reassure International Business it remains committed to open trade amid concerns president xi socalled will circulation strategy will make it more in sealer. Dual will circulation circulation strategy will make insular. In sealer we will build a more favorable Business Environment to improve services. Out anthe president laid ambitious plan to double the size of the chinese economy by 2035. What was the central message for you, the key take away from that speech . President xi is trying to reassure global audience that china is open for business. It was only last week that they unveiled chinas fiveyour plan aimed at growth at home. Xi doesnt want to spook Business Partners and he says that the dualcirculation model closed. Mean china is the form for this speech was the importexport expo in hong kong. From were executives pharmaceutical companies, medical companies, Construction Companies from around the world. It was essentially a message of xi unveiling his new economic plan and selling it to the world and trying to reassure key trading partners. And how can we expect china to respond when we get final u. S. Election results . it would be cautious either way. China will respond with a standard diplomatic speech. It remains to be seen way it goes. If President Trump is reelected, willie offer and knowledge andch will he offer olive branch are maintained the course he is on . Dont think anybody is expecting the tougher stance on china to change in the nearterm. We dont know much about Vice President s biden stance on china. He hasnt spoken about it much during the campaign. So will he cool the tempo . There is plenty on the horizon on the u. S. China front, of course, so for the moment, i think china will play it somewhat safely until they get clarity. But either way, the ball will be in the u. S. Court to speak first. Curran, our Asian Correspondent with the latest on china. Up 17 ,arkets, asx 100 health care and tech leading gains. Another day of gains for kiwi stocks, on a week high. And here in the u. S. , the best rally in five months. Aretries across europe imposing more curbs to contain the coronavirus. In denmark, authorities report a possible mutation of the virus that could complicate the vaccine. Our Health Care Reporter Michelle Cortez has more. Michelle, would continue to see more restrictions in europe. Are worrisomee signs that hospitals and medical facilities are being overwhelmed in europe, that the number of cases coming in are so great that doctors cant properly care for the patients that they are seeing, especially as they are starting to get some of the therapeutic sent antibodies, and other treatments are coming along. The idea that we want to see the virus under a certain level so that we can get everyone proper care is really critical. That is why the governments are try tog to crack down to flatten the curve flatten the curve to try to flatten the curve. [inaudible] this is a very unusual situation. They are seeing a mutation of the virus in the mink population. There are 17 million mink in the country. And they are seeing a change in the mutation of the virus itself that makes it resistant antibodies produced from the infection of the original virus. At that is really critical. Because the way the vaccines are are sparkingthey the production of antibodies against the original virus. And if there is a mutation away from that original virus, the vaccines might not offer the same level of protection, or indeed any level of protection. So they are wiping out there theirerd wiping out make herds to make sure this new form of the virus doesnt get out into the population. It is purely theoretical at this point. There are only about a dozen cases in humans. And the mutation could have done different things, it could have made it more difficult for the virus to spread, it could have made it less deadly. So we dont know all the details yet, but the fact there is a significant mutation is worrisome when it comes to the vaccine effort. Shery our Health Care Reporter Michelle Cortez. We take you to live pictures from philadelphia, where count,ers are holding a and a similar picture we are seeing in new york, we have protesters marching down fifth avenue. This is coming at a time when the Trump Campaign has filed legal action in pennsylvania to stop the state from counting more ballots. We heard from the pennsylvania governor, saying that it is simply wrong, this trump lawsuit, and that they will put every effort to oppose any shutdown of vote counting. But in the meantime, we continue to see protesters marching, now in philadelphia. Already, we some protesters here in new york. Countedp, as ballots continues in the u. S. , we discuss how companies should navigate ties with china after the election. William zaritcohen group joins us next. This is bloomberg. Think what is happening today in the markets is a endorsement of divided government. The risk for investors not being involved, if there is risk return, you should be exposed. Motionuch as there is a around leadership in the white house, they that may not be what is driving biden 2020. The vshaped recovery is intact. The fed, regardless of who wins, is going to canoe to have their gas pedal. Gas pedal. There are things in the markets to fear and cheer. Fromthout support midress, support for the the economy is not going to come. Shery the overall theme is that things are incomplete and we just have to wait. As hard as that might be. Some of our guests commenting on the slowlydeveloping picture as final votes are being tallied. Major Foreign Policy implications are hanging in the balance, especially the relationship between washington and beijing. Our next guest says, for many companies, the reason that the china plan may be more important than the outcome in the u. S. Joining us now is the chairman emeritus of the American Chamber of commerce in china, senior counselor of the cohen group. Bail, you are in the u. S. And you and i are focused on what is happening with all these states as we get this trickle of Election Results. Tell us what stood out for your business members, when it comes to the chinese plan, and the speech beingping committed to opening trade . Everyone focuses on the plenum and the following five year plan that comes out, this coming march. And Companies Want to stay involved in china, American Companies. That is where the markets are growing the fastest. And the future will see continued growth. But the idea is, what is china planning to allow our companies to stay and to grow with china . What we have seen with the plenum, and of course we dont have the fiveyear plan yet, but there are three major themes our companies are following. And that is the technological selfreliance. This has been a theme since the days of mao zedong. China,ncreasing within for becoming more selfreliant and developing its technologies so it doesnt have to rely on the u. S. Or other countries for basic technologies. Become a once to leader in the new technologies, whether aerospace, 5g, artificial intelligence, things like that, quantum computing. Shery visit concern you that china is perhaps focusing so much on becoming selfreliant, that perhaps is in this opportunities for u. S. Or other firms wont be around . We have seen concerns about this idea of dual circulation in china perhaps becoming more insular. Dual circulation, the aspect of it that is international is basically that china wants to engage international when there is capital or technology coming and that would be the focus. So most u. S. Companies now are in china, for china. Technology, we do have capital, our u. S. Companies, and to that extent, i see that china will continue to welcome foreign companies, Foreign Investment and foreign presence. On their terms. Oft is the essential message this regulatory dressing down on the eve of the ipo. William well said. And it is just another reminder, which i think part of the fiveyear plan is going to show in that Party Participation the economy is growing. And it is everywhere, and there will be more control of even socalled private companies. Financialk this ant dressing down, as you call it, is a perfect example. But having said this about the partys increased participation, going back to foreign companie participation, right now, you will see that china is very, very welcoming to most foreign companies, especially if we have technology, capital, if we have how knowhow, if we are paying taxes and employing chinese people. I dont expect this to change in the short or medium term. Haidi has there been a pullback in interest or sense of caution . We have seen the relationship between beijing and canberra deteriorate at we had an anchorian born tv essentially in detention somewhere in beijing. Foreign journalists in china, had to flee. Is that a real concern when it comes to making a decision to set up business and do business in china now . All, i first of commiserated very sorry for what has happened to the relationship, australiachina, and especially to some of those who have been detained. Concern. Is a the u. S. State department starting in july was sending notices that this is a possibility, you want to make break anyyou dont chinese regulations or laws, you want to make sure there is nothing the chinese can pick you up and detain you for. I know aid that, number of my colleagues are concerned, because just the last couple weeks, this message has come out again. And i dont think it is a continuation from july and august. I think this is a new message from the chinese to the u. S. Becausent, basically, the chinese are unhappy about some chinese citizens the u. S. Has detained. I donte concerned, but think this is going to stop u. S. Companies from continuing to be involved in, and to be very interested in, doing business in china. Shery bail, we are getting the latest from abc that the Biden Campaign launched its official transition website, called buildbackbetter. Com. The transition website already up and running. , we are facing perhaps biting in the white house in the senate going for republicans, which would be a divided congress, which many say showcases we might not have higher Corporate Taxes. Have you heard anything from business members . William i lost you for a moment. They wont be having higher what . Shery Corporate Taxes. William well, the tax situation, i dont think we know right now. U. S. Companies appreciate lower taxes so we are able to compete inh other Foreign Countries china and so forth. I think the senate being held by the republicans is going to make things more difficult, especially if there is a biden victory. Thei think the tone of relationship the u. S. Will have with china will be different, and we are looking for more communication, we are looking for more targeted tariffs, more targeted policies with china, so it is not going to be wholesale tariffs, which oftentimes are to the detriment of the u. S. We are going to see working more with likeminded countries to address what we feel are the inequities of doing business in china. This Biden Administration, if it comes through, will have a new focus on search and development in order to compete more with china. Shery william, haidi william, a pleasure to have you with us, William Zarit of the u. S. Chamber and cohen group joining us. , the stockme suspension of add group may be just the beginning. We get more on what lies ahead for the fintech giant. This is bloomberg. s sudden shelving group ipo is raising questions of what went to file with beijing over the 34. 5 billion listing. We bring in chief asia correspondent Stephen Engle from hong kong. Callingies, not just off the ipo, but bringing them in for questioning, on the eve of this ipo. What is going on . Stephen it seems so abrupt. There are many aspects to this. There is a regulatory issue. There is a deeper crackdown said to be coming on its biggest s biggestrevenue, ant source of revenue, the platforms and final funding to banks regulators say its Business Model allows it to charge fees for transaction while state run banks take on most of the risk so there is a regulatory reason that you could call this off. But it goes back to your question, why did they come up with this so quickly, or so soon before the ipo was about to hit the market . We had already gone down that road and taken 3 trillion u. S. Dollars worth of stock orders for this dual listing. Other regulations are coming as authorities are trying to build new rules that would subject Financial Holding companies, will be classified as, to higher capital requirements. All this stuff is piling up. They are racing to get new rules on fintech and applied to Companies Like ant. Putsecurities regulator out a statement saying they support the move by the Chinese Stock Exchange to block what they call a hasty ipo. We knew that this was coming, so why so hasty . Shery how much of this will hang over the alibaba Earnings Report before the market opens thursday . William stephen the Earnings Report is backwards looking, so it is the Second Quarter, and by all accounts, alibabas earnings was going to be pretty good. It probably resumed his prepandemic growth in terms of revenue and also profits. Consensus expects sales to rise and 27 effectively respectively. They made a decision to shift its Cloud Computing business more toward profit generation this fiscal year. So they came out of the pandemic at lockdowns and real pain that they suffered in the fiscal first quarter, to some real good growth in the Second Quarter and Going Forward. And in the next week, have the big, singlesday shopping event on november 11. Anthis postponement of the ipo is going to hangover sentiment, obviously. Shery our chief north asia correspondent Stephen Engle. We will discuss more on the ipo with razor howie, who joins us in the next hour. Checking business flash headlines, the National Australian bank profits slumped as the recession swelled up bad debt charges, rounding out the worst Earnings Seasons for australian banks in a decade. Cash earnings fell 37 to 3. 7 billion australian, 2. 7 billion u. S. For the 12 months of the end of december. Bad debt crippled anticipation for another poor year in 2021. The op. B Sovereign Wealth Fund is leading a 700 million funding round for a tech startup back by softbank. Company manages parking lots used for food delivery and other services such as testing for covid19. Ups istbank vision of among other investors. Qualcomm jumped a late trade after a not the forecast for the quarter, suggesting new 5g networks are persuading people to upgrade devices. It says revenue will be as much as the 8. 6 billion through december, more than 1. 5 billion above analyst estimates. Coming up on daybreak asia, Credit Suisse and the outlook on how the election will feed into asian markets. The open in tokyo and seoul is next. This is bloomberg. Our coverage of the u. S. Election results continues this daybreak asia hour. Welcome to daybreak asia. I am daybreak asia welcome to daybreak asia. Haidi i am haidi stroudwatts in sydney. Welcome to daybreak asia. Haidi i am haidi stroudwatts in sydney. In then results remain balance. The Trump Campaign sued in michigan, georgia, and pennsylvania over access to vote counts. China tries to reassure the Business World it is committed to open trade. Financial regulators in china say they support the halting of citing themag ipo dual listing as hasty. Are now hearing from ap that the Trump Campaign has filed a lawsuit in georgia. Seeking to pause the counting there. The Trump Campaign has tried to stop the counting and pennsylvania. They are seeking a legal challenge in order to stop the from county more ballots. We have seen protests from counting more ballots. We have seen protests to continue with this counting of ballots and now, we are hearing the Trump Campaign has filed a lawsuit in georgia as well to stop the counting of ballots. In georgia, the president is slightly ahead. Georgia holds 16 electoral votes , 97 has been counted. Lets take a look at how asian markets are starting the trading session. We are seeing upside for japanese stocks with the nikkei and the topix gaining ground. This as the nikkei is at the highest level since february. The japanese yen held steady. We have not seen the riskoff move in the japanese yen but analysts are warning we could see any sharp drop in investment Risk Appetite could cause the yen to appreciate. To seese, we continue volatility surrounding the u. S. Elections and bond futures in japan advance after they were helped not only by the 10 year option in japan but also the rally in u. S. Treasuries. Gains,. 8 . G we had the current account surplus whitening for widening for a sixth consecutive month. The korean won at the moment also higher. It was fluctuating on the u. S. Election risk but it is now trading near the 19 month high. Haidi. Thingstake a look at how are shaping up in australia. We are seeing upside when it comes to australian stocks. Shy of theising session highs. We are seeing Health Stocks can two to most contributing the most to those gains. Seeing a massive purchase of the covid19 vaccine to the australian population being announced. Further downside on concerns about some of these potential tariffs. The aussie dollar unchanged at the moment. We saw some dollar weakness but it has been all over the place as investors try and place what will come and what the outcome will be. If we finally get an Election Results in the coming days. Recapping of course another lawsuit, another legal action being filed by the Trump Campaign, now filing suit in georgia, seeking to pause the vote count according to the Associated Press. Other lawsuits are looking to get on foot and pennsylvania as well as it does seem to be a theme we are seeing. Thats get somewhere from kaylee. There are starting to see the legal tosoh starting to heat up. Ussle starting to heat up. What do we expect . [no audio] shery all right, so lost her but she was just telling us about what is happening in georgia because as we mentioned, the Trump Campaign has filed a lawsuit in georgia, not to mention michigan and pennsylvania as well. With arguments over what is happening. Its clear that the u. S. Election is turning out to be messier than wall street had hoped. Credit suisse is advising clients not to take sides. Lets bring in the south asia cio. Thank you so much for joining us today. What happens now as we continue to see this legal tussle over the u. S. Election outcome . We simply have to sit here and wait and see what the outcome is. Those are crucial to the economic outlook. The key thing here is that if we are going to get a split higherent, there is a probability of some degree of gridlock, and with that, we are still likely to get some sort of fiscal stimulus, but if we do not have a unified government under one particular party, its probably going to be a smaller stimulus thats going to take longer to count and thats part of what i think markets are reacting to, especially the rally and treasury yields. Shery what does that mean for asian markets . We saw some positioning that we would see writing win. Biden win. Not to mention the offshore yuan. Policymakers trying to preempt that by trying to weaken the currency as well. Well, we think that north asian markets continue to offer quite strong opportunities for investment. Markets were outperforming there it was clear, or polls suggested it was clear there would be a biden victory, and we think that will continue for a couple of reasons. The asian markets, especially china, is less volatile than the u. S. Market. Its less correlated. China in particular has covid under control. Fiscal and monetary stimulus that is supporting a strongerthanexpected recovery in its recovery. Recoverylarge domestic that can fuel the recovery and keep it going even if we get slowing growth in the west because of this recent increase in covid infections. Crucially, china has very Interesting Technology plays media,ecommerce, entertainment, education, and even ehealth. Theres a lot investors can look at in china as alternatives to diversify portfolios away from some of the risk in the United States and europe. Haidi this might be oversimplifying it, but when it comes to the equities outlook, it does not sound like that is looking to see caveins in asia where the domestic demand story is strong, where the virus is under control. That has not changed regardless of what the outcome is in the u. S. Thats absolutely right and it really focuses on north asia because of north asias control of covid, its larger domestic markets, and its greater variety of direct plays on technology. How does the u. S. Dollar strength or weakness, we have had compelling arguments for both leading into the election and even now, how does that play into your assumptions and views on emerging markets in asia . Ray we think the dollar will probably weaken on trend over the next three months and 12 months. The next two or three months are choppy or because of the uncertainties associated with both the outcome of the u. S. Elections as well as the increase in covid outbreaks in europe and the lockdowns there that make euro a less attractive alternative to the dollar but dollar fundamentals we think are very poor. Between deficits, the current the budgeticit bans, deficits will widen significantly. Historically, that has tended to lead to a weaker dollar. The Federal Reserve will keep Interest Rates exceptionally low, preventing the dollar from Offering International investors any sort of gold premium over the next couple of years. And then if we look at north asia, currency fundamentals are extremely strong. The current account surplus in korea came in at another high five months in a row. That is a fundamental support for the currency. Toexpect the korean won continue to appreciate. Current account surplus, net fdi inflows, probably net inflows into bonds because chinese bonds have offered a significant yield premium to most developed markets, and we think that to come ony is going balance, draw in net inflows into equities. Haidi always great to have you. Ray farris, ceo at Credit Suisse. Thats get back to kailey. Campaigneing trump lawsuits really flying all over the place. Kailey the most notable recent one was in georgia. As of about 1. 5 hours ago, the president s leading in the state by about 16,000 votes, but 200,000 votes have yet to be counted, and the largest number of those are in Fulton County and a cobb county, which are and another county which are democrat strongholds. He has filed suits to stop accounts in michigan and pennsylvania. Pennsylvania asked the Supreme Court to interv intervene. We dont know how these legal suits are going to go, given all the ballots being counted were cast illegally, but the Trump Campaign is pulling out all the stops to stop the vote in key swing states. Shery we were always worried it would take time for these ballots to be counted, especially in places like nevada, who are not effecting returns until thursday. I guess everybody is thinking, how soon could we see a result . Kailey its the perennial question up in the air. We did hear from nevada officials saying they could update us this evening so we will see what kind of numbers we get out from there. Nevada could be critical because at this point, the victory is in joe bidens grasp with the victories in michigan and wisconsin that were declared for him earlier today. That brings the Electoral College vote count to 200 64 relative to President Trumps 214. You only need 200 70 votes in the Electoral College to clinch the presidency so assuming biden can keep hold of arizona, which the Associated Press has called for him, only one more state needs to tilt blue and in his favor for him to become the next president. Saws it fair to say you markets basically unwinding that trade overnight as an impossible scenario . Is looking increasingly unlikely. Any hopes of the democrats reclaiming a majority looks very slim after several public and incumbents that were seen as in danger have actually held onto their seats. The most recent being susan collins. What is interesting is it is not just the senate. The house in which democrats were seen as taking 15 more seats, have actually lost seven. Seven incumbents have lost their reelection campaigns so the House Majority is narrower. If joe biden does manage to clinch the seat, hes looking at potentially a divided government and a house that may have a lot less negotiating power. Shery. Shery thank you so much with that update on everything that is going on in the u. S. Election. Still ahead, an exclusive interview with singapores mr. For minister for trade. We will assess the election implications. We are to shanghai for the latest from the China International import expo. President xi jinping says the nation is still committed to open trade. This is bloomberg. Haidi the u. S. Election is being watched across asia, not least of which in singapore, which has traditionally managed to balance good ties with washington and beijing. Lets bring in our correspondent, Haslinda Amin. Is important u. S. To singapore. One of the biggest trading partners. 4. 5 thousand American Companies are based in singapore employing 200,000 workers so it is an important event indeed. Minister to trade look at how singapore is doing this election. Always good to have you with us. We are awaiting for that conclusive outcome from this u. S. Election. From your perspective, how is singapore viewing it . What is the possible impact on u. S. Singapore relations . Very good morning to you. It is always a pleasure to talk to you. I think we look at this election from a longerterm perspective and we look beyond the personalities. Let me explain why we say that. At this point in time, regardless of the outcome of the elections, we will be looking at the following set of factors. First, we know that this election has deeply divided the u. S. Electorate. Candidatesge for the will be how can they reunite the country . How can they unite the country and make sure they adopt consistent and coherent policies Going Forward . The second challenge will be how can the u. S. Bring the covid19 situation under control so resume . Activities can these are the more immediate challenges. Beyond the two immediate challenges, the others are as follows. First, how can the u. S. Maintain its competitiveness . Across theembrace world to continue to propel its economy forward . Second, how does it help its own businesses as people adjust to the pressures of globalization and digitization and not have a backlash against globalization and digitalization in the u. S. . Otherwise, there will be a pushback against globalization and the World Economic system may fracture or fragment because of that. Finally, one of the Biggest Challenges for the u. S. Going forward is how can it maintain its leadership in the world by mobilizing partners to Work Together to uphold and update the Global Economic and security . These are some of the immediate challenges and some of the longerterm challenges, regardless of who wins the election. Haslinda a lot is at stake for the world, for singapore. We were talking about how singapores own recovery is contingent on how the rest of the world is recovering as well. Now, we have a resurgence of the covid cases in the u. S. And europe, and we are seeing some restrictions. How is it impacting singapores own trajectory when it comes to the economic recovery . Minister sing we are closely connected to the rest of the world and definitely, the reimposition in europe and there will be knock on impacts on economies like singapore. Let me touch on how we intend to deal with this. Domestically, we have to make and we open up safely sustainably. Open up resume our Economic Activity in a sustainable and safe way. That is fundamental. Having done that, our second priority is to make sure we can reconnect with the rest of the world in terms of the ceilings to make sure that we strengthen our conductivity with the rest of the world in this crisis. That, we candone get back to our primary focus, and that is to make sure we continuously reinvent ourselves theaking sure we reallocate factors of production from labor to capital and so forth to the new industries emerging and to seize new opportunities. Haslinda minister, do you see a ushaped recovery, and when did you see a recovery for singapore . May have a lot describing this in different shapes. The recovery will be gradual and uneven. It will be gradual because it very much depends on what happens in the rest of the world. Along, will further that be a repeat of the spike cases . It will be uneven in gradual. Regardless of the pace of recovery, some industries will look at new Business Models, new markets. Here are other industries they will continue to do well regardless of the covid. Factors likehand, social entertainment, you will have to read their Business Model in order to recover from the covid19 situation. Some sectors will continue to do very well while other sectors will need to reinvent themselves and our job is to make sure haslinda minister minister sing sorry. Haslinda one thing that must change in a post covid world . I think some of the forces that we are talking about have already happened prior to that. Of a fragmentation, bifurcation of the Global Economic system. New technology that will change the method of production, reshape Global Supply chains. Work will also have a great impact on the future trajectory. These are the factors that will shape Economic Development in the covid world and post covid world. Singapore minister for trade industry. Thank you so much for joining us this morning for your insight. There you have it. Was Haslinda Amin speaking exclusively with singapores minister for trade and industry. Lets get you to Karina Mitchell with the first word headlines this hour. Karina president xi told the expo in shanghai that his circulation strategy does not imply china will become more insular. He said the plan is not a closed domestic policy but a more open relationship between mainland and overseas markets. He insisted it will benefit nations around the globe. Financial regulators in china say they support the halting of the mega ipo describing the dual listing in shanghai as hasty. Changes will have a major impact on ants profit model. Came two days before the listing was set to raise a record 35 billion. Protest leaders in thailand are rejecting plans for a National Reconciliation committee, reiterating that the Prime Minister must resign effective immediately. Parliament is setting up a committee to discuss their demands in a bid to ease tensions but protesters say it will be meaningless if he remains in power. Situationclude a new and curbs on the power of the monarchy. 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. News ate have breaking the moment. We are hearing from a nevada election official that therell be no Election Results until thursday. That was the expectation from the beginning but we had heard today that potentially we could see some results earlier. Now, we are hearing confirmation that there will be no Election Results until thursday. Nevada has six electoral votes and right now, with Vice President biden standing at 264 electoral votes, that six could have taken the Vice President over the talk but we are hearing we will see no results until thursday. Dont forget, if you are away from the screen, you can always find indepth analysis and the days big newsmakers on bloomberg radio, now broadcasting from our studio in hong kong. This in via the app, radio plus, or bloombergradio. Com. Stay with us. Haidi a quick check of the latest business flash headlines this hour. Surged theft have most in months. Proposition 22 was crafted and funded by Gig Economy Companies to exempt workers from new laws offering staff benefits. Thailand has approved a slew of incentives to promote the local production of electric vehicles. The benefits includes a holiday for manufacturers for plugin hybrid models and a Corporate Income tax waiver for makers of vehicles that run on batteries. Coming up next on daybreak asia , china reassuring the world it holds no barriers to trade. We get analysis, next. This is bloomberg. When you switch to xfinity mobile, youre choosing to get connected to the most Reliable Network nationwide, now with 5g included. Discover how to save up to 400 a year with shared data starting at 15 a month, or get the lowest price for one line of unlimited. Come into your local xfinity store to make the most of your mobile experience. You can shop the latest phones, bring your own device, or trade in for extra savings. Thats simple, easy, awesome. Visit your local xfinity store today to ask, shop, discover the latest on xfinity mobile. More voluminous hair instantly. All it takes is just one session at hairclub. Introducing xtrands. Xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. Theyre personalized to match your own natural hair color and texture, so theyll blend right in for a natural, effortless look. Call in the next five minutes and when you buy 500 strands, you get 500 strands free. Call right now. upbeat music shery we have breaking news out of japan. We are getting the final japan pmi numbers for october. Things coming in at 47. 7, a slight improvement from the previous month. Alsoomposite number at 48, an improvement from the previous month, but will in contractionary territory. They have been in contraction since february although we continue to see improvement in these pmi numbers across the region. South korea on its manufacturing side just hit a twoyear high. You are seeing the japanese yen did against the u. S. Dollar that 100, stronger at four level, haidi. Haidi breaking numbers. A mixed picture, may be skewed to the upside when it comes to the latest pages on australia trade volumes and demand. Volume ining a trade september, more than expectations, better than estimates of 3. 7 billion australian. Jumpwas a better than did when it comes to exports, month on month. Priorng back from the contraction of 4 , but its most likely more on the x work import side. The lack of domestic demand causing a 6 contraction in imports month on month in september, much worse than expectations of 1 and also a contraction of 1 and really reversing gains of 2 and this comes at a time that we continue to see Downside Pressure for australian exports as well as it is turning to curbs when it comes to exports for australian products for copper or to lobsters to penalize canberra for moving and pushing back against beijing. Take a look at the market reaction. This comes on the back of the rba cutting rates to a new record low this week. We are seeing downside when it comes to the aussie dollar. Gains when it comes to australian stocks. This as we continue to await the outcome in the u. S. Election result. We are seeing a sea of green as iss ipo policy gridlock somehow counterbalanced with expectations that will get more stimulus from the u. S. , shery. Shery no wonder we got the best rally in the u. S. Action. Now to karina missile Karina Mitchell. Witha increasingly tied both sides insisting they are on track for a victory. Joe biden says he will win one once all remaining votes are counted. They are counting doubt on the veracity of mailin ballots. Biden won in michigan and and wisconsin although the president s team says it wants a the two less than one percentage point apart. The Trump Campaign has filed lawsuits to contest vote counts trending towards joe biden. They allege they have not been given access to numerous counting locations has guaranteed under state law. The Campaign Manager demands a review of ballots that were counted while his team were not present. The president said he was sued to prevent the election from being stolen. Newh mcconnell wants a relief package before the end of the year as Election Results suggest the democrats will lose some leverage in congress with the chances of a socalled blue wave diminishing, the smaller stimulus bill is expected. Mcconnell supports funding for schools, hospitals, and small businesses, but not the sweeping proposal the democrats want. Pariss. Has left the climate accord with the Election Results unclear. President trump initiated the process one year ago and the u. S. Exit took place on wednesday. If reelected, trump would promote fossil fuels and rollback environmental regulations. Will rejoinid he the Paris Agreement immediately if he wins. 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 president xi jinpings signature trade exhibition is underway in shanghai. Around 400,000 people will reportedly attend the China International import expo. Tom mackenzie is among them. What a great chance for the president to showcase how beijing is out of this Health Crisis while most countries are still reeling from the pandemic. Tom absolutely. It is meant to offer a counter narrative to the idea that china is in these trade is used with the u. S. , trade disputes with the u. S. , and not only the u. S. , but also canada as well. The counter narrative is meant to show the demand in china for quality products and imports, but also as you say, it is an opportunity for china to show how successful it has been encountering the coronavirus and the fact that across the country, the economy has opened up and it is a for enough to hold these kinds of events. The China International import exhibition has there are expected to be tens of thousands of visitors, hundred of them. Its pared down from last year. The idea for china is to try and expand it domestic economy and try and Show International market that it is open for business. They also want to track sti as well. There will be executives on the ground from International Companies but we might see some dealmaking and we will be watching for that. Big dealseen some and. Sectors ranging from pharmaceuticals to dairy, to automakers. Will see to what extent does do get made on the ground. Haidi president xi jinping delivering that keynote address. What were the highlights you gleaned from it . Certainly ine focus because it comes amid the u. S. Election. It comes after the sharp polling of the antipo and it comes as china recently has outlined this new growth strategy, the dual circulation strategy for which there is some concern amongst Foreign Investors. What he did was not comment directly on the u. S. Election, but he did give a nod to the frictions with the u. S. He said that they were better to join hands. He said it was better to consult with others rather than slander each other. Take a listen to what president xi had to say. Will continue to improve its legal system concerning overseas affairs. We will strengthen the attention of Property Rights and the legal rights of enterprises. We will be building a more favorable Business Environment to provide better services. Heard from the president saying china would import 22 trillion worth of foreign goods over the next decade, roughly in line with current trade flows. Also pledging to open up other sectors of the economy not currently remain closed off to investment and business and saying they would shrink this list of Restricted Technology imports. Pledges along the lines of which we have heard before. Many foreign businesses will tell you they want to see the devil in the details as ever with these weeping comments from chinas leaders but nonetheless, that chinaemphasis remains open for business among concerns that dual circulation of selfreliance is china closing its doors. The messages, we are not, we are open for trade the message is we are not, we are open for trade. Haidi Tom Mackenzie in shanghai as we continue to focus on our top story, which is waiting for these incremental announcements coming out of the u. S. Election count. We are seeing a trend building with the Trump Campaign. They are saying they will file suit over tatum county and georgia in georgia. We have seen this emerge as a tactic as we have seen the upper hand when it comes to accounting and georgia for the president so far but Chatham County contains a banner. Perhaps that is some incentive for the president and his campaign to seek a stop to the vote count. We are going to continue to watch for these latest developments. Of course, when it comes to georgia, the balance from the county will be counted this evening as well. Coming up next, financial regulars in china supporting the ipo,ng of ant groups describing it as hasty. We will be discussing the implications for ant and the wider simtech sector. This is bloomberg. Haidi the sharp suspension of ant groups ipo may be the beginning of a renewed campaign by china to reign in the simtech empire controlled by jack ma. Authorities are saving their ofe on ants biggest source revenue. Ring verybook titles true in terms of what red capitalism really looks like. The lastminute, the eve of this highly anticipated i euro that has been years in the making, you get this regulatory dressing down that feels very personal. Why didnt they do this months ago . Why did they call this hasty when it has been so long in the making, and what does it tell us about the power of regulations . Yes, im going to deny that, but it has been hasty in the sense that lots of people have been talking about this ipo coming but in terms of filing reviews by exchange, etc. , in hong kong, it was a very fast turnaround of the approval for what was always, i would argue, a problematic company, not that the company was doing anything wrong, but it was always in industry which we knew was in regulated and the rules were changing. We knew that the authorities were unponderable so from that effective, i think its very easy to put the blame on the regulators and the heavy hand of the state and there is part of that going on, partly that the banks dont like their business being encroached upon. At the same time, ant has played in an environment with very few rules, the rules are changing, and there was concern the company had not really made these changes clear to the investors. Back, it will come back with a very different Balance Sheet and growth outlook. And we will see a very different sort of company. Very jack ma is outspoken. His use most recently, when it comes to his views on the simtech sector, his use about, fairly disparaging about the role of banks and what they kind of do and symbolize in china, did that play a part in terms of this being perhaps a little bit more personal . Possibly. It does call into question, you flag off regulators. That does not sound like a clever idea. I dont think anyone would advocate that. He has been outspoken. He is not saying anything we do not already know. It is certainly too simplistic to say that they just closed down his ipo. I think there are underlying trends. I am hardly an advocate for chinese banks. And regulation. They worried about are certainly worried about their business. I dont think we should read too much into the personal side. Are worried about the lack of capital. Lets remember, ant group used to be called ant financial. It clearly saw itself as a Financial Company using technology. I dont buy into the local argument of we dont need to be regulated because we are attacked. Shery more worried about ant group itself and the ongoing tensions. We have seen beijing trying to shore up its own National Champions like huawei. I guess this does not apply to ant here. Is very different because it is very much a domestic company. Has a 43 trillion dollar banking system, three times the size of its economy. It has an ongoing debt problem which is not going to go away. It is only going to grow with the new growth targets. The chinese financial authorities are clearly worried about Regulatory Risk and they want to ensure all large bears are regulated. Will that hamper growth . In some ways. Is there to avoid other problems. To succeed in some ways antero, clearly within a set of rules which will not cause harm to the system. Shery will this hamper growth and development when it comes to chinese exchanges who were expecting this to give a boost to the Hong Kong Exchange and also to shanghai . Fraser what is interesting in shanghai did a Global Investor Conference Last Week saying, look how we are open for business. They have changed the rules to make it easier for foreigners to get in, so from that perspective, china was open to portfolio closed. Has beenverall, it very badly handled. All these concerns could have been raised much earlier. They could have had much Greater Transparency and that is the problem with china, lack of transparency and what appears to be arbitrary decisions. Shery great to have your thoughts, fraser howie, coauthor of red capitalism and privatizing china. Chicago has seen protesters on the streets, calling for every vote cast to be counted. We have seen similar protests unfold in philadelphia and new york city. This as we are seeing the Trump Campaign challenge vote counting and try and stop accounting both in georgia, michigan, as well as pennsylvania area georgia saying they have 100 49,350 ballots outstanding as of 7 30 p. M. 16 electoral votes in michigan. 20 in pennsylvania. President trump only having 214 electoral votes. He is trying to stop vote counting in these states. Coming up next, singapores earningsenders posted beats. We will break down the numbers, next. This is bloomberg. Shery election uncertainty, especially among two candidates with completely different takes on the virus response, is endangering the chances of containing the pandemic according to Johns Hopkins bloomberg goal of public health. He told us how concerns surrounding the coronavirus played into the u. S. Election. He was one candidate who was really saying that defeat the virus and another saying lets ignore the virus and ignoring the virus is tempting because everybody wants to go back to what they were doing before and go out to work and do all those things. Ignoring the virus leads to a lot of death. Ignoring the virus really depresses peoples confidence so the economy is harmed while they are there are raging infections. Its not realistic to see the economy doing what it used to be when you have the kind of rates of infection we are seeing now of more than 90 think 90,000 cases on election day. Hospitals in the u. S. And in european countries, how soon will they be overwhelmed once again by Covid Patients . It all depends on what we do. Without a change, they will get overwhelmed. They are already overwhelmed. There are some states that have no intensive care unit beds. The virus spreads, if it continues to be exponential spread, those will get overwhelmed, too. It really depends and it really requires leadership. I think the politicized asian of the recent politicization has not been helpful. At some point, hopefully we will turn the corner on that and people will be able to focus on the business of both feeding virus and improving the economy. Francine this is a contested race. Is there a concern people think this is an illegitimate u. S. Election, they will stop focusing on how to handle covid19 and taking appropriate precautions . Joshua all that has to happen is they have to count the ballots that were submitted so i think there is obviously a lot of handwringing about what might happen, but hopefully, it will be clear at the state level that people saw the procedures for counting the ballots and people can start to think about other important things like protecting themselves from a deadly disease. Shery Joshua Sharfstein speaking with francine lacqua. Byt school is supported michael r. Bloomberg, founder of bloomberg e and bloomberg lanter pease. Qualcomm jumped in late trade after an up forecast for the quarter, suggesting new 5g networks are persuading people to up rate devices. It says revenue will be as much as 8. 6 billion dollars through december, more than 1. 5 billion dollars above analyst estimates. Wealthbis Sovereign Fund leading a funding round for a tech startup backed by softbank. And parkingomes lots used for food deliveries and other services such as testing for covid19. Ubs, ans vision fund, oak tree are among the other investors. National australia banks fullyear profits slumped as the coronavirus induced resumption rounded out the earnings season. Cash earnings fell 37 to 3. 7 billion australian. Haidi we will be watching the banks in singapore when the index opens at the top of the hour because earlier, we had dbs and ocbc reporting earnings beats. Bloomberg intelligence covers lenders in a pack and she joins lets start off with dbs. What are your thoughts when it comes to the quality of these earnings . Good morning. It was broadly in line with what we expected and it puts the bank on track for a 2021 Recovery Area with provisions have died down a little bit. Lack of travel and tourism may keep pressure on the business but overall, a very healthy beat. The key thing to look for now is the margin guidance. Already at 2. 5 of the 3 billion to 5 billion guidance for this year and next so i think is very healthy set of numbers. Shery and how do the numbers compare with the other two . Ocbcs income was at a record high and ample treasury income. They have reported very encouraging numbers. Wasbiggest to go yesterday the expectation that margins may stabilize. Matt was the biggest concern in the bank for revenue. Outlook whens the it comes to credit quality Going Forward . I think risks remain because there could be further deterioration in covid if for some reason we have another round of lockdowns. Now that we have seen healthy provision levels for all three banks and the singapore government general stimulus, that may help the banks. In a positive scenario, we could see costs as opposed to 2021, which is the base case scenario. Shery and also a positive scenario for nds as guide. Is this the start of a recovery . Dkaha thats an interesting question because investors feel under confident about the asset quality given its the Public Sector lender, after all. Wellhave done surprisingly in the fiscal Second Quarter. Point, i would not expect that for the Second Quarter performance but they also expect slippages over the next six months. They are still under stress but the performance will still be better than what consensus was projecting. And we the year with. And what we started the year with. Haidi dkaha gera talking through the singapore earnings. Betterthanexpected. Marketse a look at how in asia are trading at the moment as we continue to wait for the vote cap. President rmer vice biden on the brink of winning all the votes. The Trump Campaign with a number of different legal actions. We are seeing upside. Perhaps confounding the across the asiapacific with the nikkei 225 up. 9 and also seeing gains here in the sydney session as well. Coming up, we will be getting the outlook when it comes to fixed income. Templetons cio is joining us and we will be talking about the crackdown on ant group with a cofounder. That is it for daybreak asia. Our markets coverage continues, next. This is bloomberg. Welcome to Bloomberg Markets china open. Shanghai. Ackenzie in ingles. David we are counting down to the open of trade. Joe biden winning michigan and wisconsin, but the election undecided. Ins