Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

For a september quarter. There are also concerns about the ant ipo fallout. And america awaits the outcome of the president ial election, seven states now holding the keys to the white house. Wisconsin heads to a recount and others face challenges in court. Foropen here in sydney friday trading in asian markets, we have seen an eerie calm and trading across equity markets, and globally, on expectations that policy gridlock will me know extreme measures when it comes to the tax front being taken and more status quote when it comes to the visible markets. We are up. 2 when it comes to sydney, the in aussie dollar and commoditieslinked currencies it particularly well. We have the u. S. Dollar fall to its lowest in two years. The nikkei 225, we expect weakness going into the open but we have japanese stocks trading in the green every day of the week. Also watching the yen, but interestingly, as an election respirometer, we continue to watch price action in china as well as volatility in china as well, on expectations of a violent election victory. Lets go deeper into the u. S. Election, the top story, joe biden urging patients as the vote count drags on in 70 states, and as republic in seven key states and as republicans continue legal action to stop the count. The President Biden senator and i continue to think we are very good when it comes to where things stand. When the votes are all counted, senator harris and i will be declared the winners. I ask for all people to stay calm. The process is working. The count is being completed. At we will know very soon. Shery the race remains at a tipping point, with biden just a handful of Electoral College photo away from the presidency. Our reporter is in d. C. What is the latest . Reporter just minutes ago, the trump lead in pennsylvania dropped below 80,000. The numbers are closing quickly. We could know the winter there by tomorrow. Officials there have said possibly tonight. Could be tomorrow, though. We are still waiting for ballots in allegheny county. But all the counties around philadelphia and philadelphia itself, all the ballots have been counted, the male ballots are coming back very democratic and very providing. For a while it looked like nevada or potentially georgia would be the quickest path to victory for vice President Biden. The georgia lead for the president is narrowing. There is trump lead down to 9000. It looks like 39,000 ballots in georgia are left to count. Unfortunately for trump, most are in savannah, chapin county, very democratic, very africanamerican population there. And that is good for biden. So georgia, nevada, pennsylvania, we arent sure which is going to come in first, but all are trending in bidens direction. Shery kyle, what is happening with the senate races . We assumed there was no blue wave. Kyle definitely no blue wave come up with the Senate Majority is definitely in playthings to georgia. One senate race there is already going to a runoff in january. The other race looks like it might head that way. Senator david duke, republican incumbent, his wheelchair just dropped below 50 . That is the threshold you need to win an election outright in georgia. It looks like that now he is below 50 , he is not going to get about that. A lot of codes biden will probably also go to purdues democratic challenger, jon osso ff. And they will also faced off in a january runoff. So we could see the senate being decided in january. Haidi our government editor there in d. C. We will be hearing from President Trump at the hour. Lets get to Karina Mitchell in new york with first word headlines. Karina good morning to you. Global coronavirus cases are approaching 50 million reported u. S. Infections, something records. The Ohio Governor calling the rate shockingly high. The numbers are sparking fears of a new lockdown across the u. S. , even before thanksgiving. Frances warning of a violent second wave in greece is the latest european nation to declare a national shutdown. Ae you that the eu is facing double dip recession. The uks extending payments to furloughed workers until the end of march, as the coronavirus ravages the economy there. The program was to expire december 2, and the lockdown is also set to expire then. The payments of 80 of wages will continue for those unable to work due to the pandemic. The u. K. Will be paying wages for over one year, but the measure was originally intended to last three months. Industrial you made it first arrest under foreign interference laws, dictating a 65yearold man said to be a prominent member of a local chinese community. Follows a yearlong investigation into the mets relationship with a foreign intelligence agency. The abc says he is linked to beijings overseas operation. On employment in indonesia rose to a nineyear high in the Third Quarter as the economy slipped into its first recession in more than two decades. Year ago, 3. 5 from a the worst seen in a bloomberg survey, down from a 5 contraction in the second quarter. 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. The futurel ahead, of ties between the worlds top two economic powers. Max baucus tells us why the washingtonbeijing relationship is more solid than meets the eye. , princeton professor alan blinder joins us to look at the fed, the recovery, and the economics of the election this is bloomberg. Im very reluctant, as you would imagine, to comment on the election, directly, indirectly, at all, other than to say does a good time to take a step back and let the institutions of our democracy do their jobs. We will hasd here, always continue to do our jobs. Every day, we will serve the American People using our tools to support the American Economy during this difficult time. Fed chair Jerome Powell addressing election uncertainty as we await the count. Joining us now is dr. Alan blinder professor of economics blinder, professor of economics at princeton university. Wonderful to have you with us. As the markets price in policy gridlock going into the election results, will the fed befores to do more heavy lifting for Monetary Policy . What the fed befores to do more heavy lifting for monetary forced tol the fed be do more heavy lifting for Monetary Policy . , they will, but i wont say heavy lifting. They are never out of ammunition, and even if they are, chairman powell would never say that they are. But i think there are extraordinary things they can do. But it is nothing comparable to what they have already done. They have already shot a lot of their ammunition. And if there is no fiscal package, which is what we have been struggling with for a few months now, who knows what is going to happen during the transition . But if we are in that situation, it is likely we will need Something Else from the fed. It would be better to have it from the fiscal authorities, but if they dont deliver, it is likely that it will be from the fed. Haidi so there is a question over the size of any fiscal stimulus package, and there are concerns we will see another peak when it comes to rising virus cases in the u. S. What does this mean potentially for these pretty optimistic Inflation Expectations the market had been pricing in leading into the election . Gauges can see various that indicate that is starting to come apart. Morelinder i think it was on the real side, but to answer your question on the inflation side, i thought i think it is probably negative inflation. We mounted a vshaped recovery. If that gets aborted, and it will could because of the double whammy because of the greater incidence of the disease that the failure of the fiscal authorities to act. Remember what they did in march. That was a big deal. And it helped. It helped a lot. If we get both of those happening at the same time, or roughly the same time, i think the economy is in danger of slipping down again. And that is a negative to inflation. Point one key sticking during stimulus negotiations was that helped democrats wanted to provide to state and local governments. What happens if you dont get that theyd dont at that aid . Dr. Blinder i think it is disgraceful. This is not the feds business, but i think it is disgraceful. If you look at who is spending the brunt, it is the state and local governments, not the federal government. They are also big losers along with the federal government on the revenue side, as sales contract, therefore sales taxes contract, income taxes contract, etc. A big difference, the fed can just, sorry, the federal government can add things like that to its budget deficit, which it does. State and local governments are almost 100 under balanced budget requirements. Gorevenues go down dan down and necessary expenditures from the pandemic go up, they have to cut other things. What are they going to cut . Beaches . State highway controls . This is a real problem. We dont want them to cut any of those things, and if there is a way out, the way out is with more generous grants from the federal governments to the states and localities. This should be done. Shery what is your key take away from chair powells tone today during the press conference . And what would you expect from them in their next meeting . Dr. Blinder it is hard to say. Let me take that in pieces. If things look, at the next meeting, more or less the same they did at this meeting, which is true if you go back. Exactly likelooked the previous, so it was a foregone conclusion that they were going to say they were really going to do nothing. If that is true at the next meeting, we are not sure, i would expect another do nothing, say almost nothing meeting. On the other hand, if they are saying there is some chance the economy will start to deteriorate between now and the next meeting, in which case i dont think the fed will just stick will just sit idly by and let it happen, we will probably announce more lending facilities or Something Like that. I was almost going to say push Interest Rates down. They already told us they dont want to go negative on the federal funds rate. But another example is that they could go out on the yield curve and start buying much lower rated bonds that they are buying now. That would be one example. Isthe economy looks like it slipping badly, they will want to do something. Shery we will have to watch closely. Former fedinder, vice chairman and also a professor at princeton university, thank you. Spooksup, alibaba investors already on edge over the shelved ant ipo. We are learning more. That is next. This is bloomberg. Quick check of Major Business flash headlines. Boosting capital and its micro ant unit in the wake of the suspension. Came in response, reportedly. The increase was launched in august and completed last month. Tencent says the move is normal. Theda goose heads into crucial winter season. Quarterfor the second fell 34 as the coronavirus forced stores to close at home and abroad. 150 million u. S. Is now forecast. Online revenues also a bright spot, increasing 10 . Whatsapp introduced disappearing messages this month that will automatically delete upper seven days, with the facebook platform says it wants user conversations to feel even more private. The ante will discuss ipo now, the shelved listing leaving investors and brokers struggling to unwind aliens of dollars in orders. Stephen engle joins us. Retail investors here in hong kong are not happy. One in five hong kong residents, 1. 5 million retail investors, had signed up for the ant shares. Many borrowed on margin, they are counting their losses. Interest rates on the fiveday holding for margins were upwards of three point 5 . Reports this morning say hsbc and bank of China Hong Kong could pocket upwards of 25 kong, in interest income, and this is not sitting well with many smaller retail investors. Al listing attracted nearly 3 trillion in orders from individual investors but some people are calling for rope riches and some smaller banks, unlike hsbc en banc of hong kong, to share the pain. And they have even called for ant to pick up the tap. While that unsettled behavior is happening here in hong kong, in china it is a dual listing, and the government has perhaps a bit more of a heavy hand. The Securities Regulator is giving instructions to ensure the subscription fees could be returned to investors in an orderly matter. Share refundsid a could begin today. And the regulatory or the regulator and china has asked for the refunding of fees with transparency and fairness. So different scenario across the border but still a lot of investors, whether small or big, scratching their heads as to how this could happen so close to the listing date. We saw investors unhappy over alibaba earnings. Story rob off on that . Stephen absolutely. It was the big elephant on the Conference Call with the ceo. He would basically only say that they are evaluating the impact. He said, open boat we are active actively evaluating the impact on our business. That is about all the ceo said about ant. At the numbers were not great. We were expecting the continuation of the story for alibaba after all that pain in the First Quarter because of the pandemic. But revenue in the quarter ending in september, second fiscal order, grew at its slowest pace on record for that particular quarter, which is a darn good quarter for alibaba usually. It really does underscore that this post Pandemic Recovery may plateau. But keep in mind, they get a big revenue boost. Dont feel sorry for alibaba, they will get a big revenue boost coming up next week with the annual, singledate shopping extravaganza. They get an adrenaline shot. But basically, here are the numbers, sales in line, 23 point 4 billion u. S. Dollars, profit ling 60 yearoveryear 43. 4 23. 4 billion 23. 4 billion u. S. , profit falling 60 . Alibaba says profitability will be the focus this fiscal year through march. Sales jumped 60 . The company is saying is on pace for profit this year. Shery we have seen potential regulation coming up, given the suspension of the ipo. Can we expect changes for alibaba as well . Are they going to get scrutinized . Stephen well, they have many fingers in many pies. These regulations are on these fintech companies, and the alibaba play platform alibaba pay platform is critical to their business endeavors but so if theres going to be increased government regulations on fintech, that is what you absolutely impact alibabas conduit for ecommerce. Haidi our chief north asia correspondent david engel ant. En engle the countdown is on for launch from the rocket from the Cape Canaveral station in the u. S. State of florida. Satellite, 20 seconds to go until we see the launch there. Off atsupposed to take the beginning of october, but that was scrubbed ended was scrubbed. And it is looking like it is taking place now. Stage one propulsion normal. [jet engines firing] 30 seconds into flight, propulsion, the merlin one engines preparing to throttle down for preparation of maximum dynamic pressure. And we are heading into the throttle bucket as we powerdown the merlin engines. And throttling back up now. And when the engine is back up at full power and we have gone . Mark 1. One past vehicle is experiencing maximum aerodynamic pressure. Engineer reports we are passing through the area of maximum aerodynamic pressure, maximum aerodynamic pressure, max q. Trajectory looks good. Engine shell has started. The engine shell on the second stage engine indicate we have begun chilling that with the first stage engine, getting ready for the initial of the upper stage engine coming up in 30 seconds, the usual, threesequence event that will happen in rapid succession, main engine cut off will shut down the nine merlin engines that you see glowing in the night sky, space operation, and then we get start up of the second type and stage engine. From the ground camera, nice view looking up at the nine merlin engines on the business end of the falcon nine first stage. Stage separation confirmed. [applause] you have been watching the launch of falcon nine by spacex. We will be watching closely for the first stage land on the company drone ship in the atlantic ocean. For now, we know the u. S. Has become the first country to top 100,000 covid cases in one day, reaching another grim milestone. Up next, former u. S. Ambassador to china max baucus, who says washingtonaging relations are solid. This is bloomberg. I feel like were forgetting something. Let me check. 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. Shery we have breaking news at the moment out of japan. We are getting september Household Spending falling 10. 2 year on year and we are expecting it to fall for six straight months. We have seen sluggish corporate profits. Labor cashes to the earnings yarn year, there is a contraction of. 9 . Numbers slightly beating expectations but still in contraction territory. Well cash earnings, a contraction of more than one cent. Of course, we are watching closely what is happening with the u. S. President ial election. President trump set to hold a News Conference imminently as the u. S. Election now hinges on the results in just seven states. Each with varying rules on vote counting and legal challenges. For more, we are joined by Kevin Cirilli. This will be the first time we are hearing from the president after his 2 00 a. M. Victory call. Votes were still being counted, as they are right now. Kevin precisely. Earlier in the day, a couple hours ago, we heard from joe biden, who urged patience as well as trying to renew a sense of home as the president continues to explore legal action in a host of different battlegrounds including nevada and pennsylvania and already, georgia has signaled they might be headed for a recount. Thats incredibly likely. In terms of the final vote tally, we are still a couple of days away. If there was an official in clark county, nevada, they indicated they might not be done tallying their votes until saturday or sunday, in just a couple of days so the bottom line is the president continues to try and explore legal action in a host of different states. He has deployed some of his top campaign officials, including rick linnell and rudy giuliani. They are exploring legal auction options. I can tell you both joe biden and the president of the Election Campaign are having Rapid Response teams working behind the scenes with a crew of lawyers totaling in the number of thousands across the entire country for what is shaping up to potentially be a legal fight. Whether or not that fight is waged on the state level in battleground states or lines up in the Supreme Court is a bit premature to say but we are anticipating momentarily from hearing from President Trump, its looking like he will take questions, and again, we are anticipating that within the next halfhour. Haidi pretty extraordinary, that mobilization of the legal team on both sides. If you take a look at the path to victory, it seems like the easiest one might be for vice President Biden but we are also seeing the likes of arizona where the numbers are starting to tighten so when are we likely to get the soonest count completed in any of the state to give us a better indication of who will have the keys to the white house . Kevin three quick points. First and foremost, to answer that question, a matter of days. Each state has their own local government. State authorities that are in charge of tracking this so the timetable truly is different upon each date. Secondly, the impact that this has on policies. While the election uncertainty continues, at the president ial and to some extent, the senate level, that makes it incredibly difficult for lawmakers in the house to pass a lameduck fiscal stimulus deal, and then the third point i would reiterate here is that i am going to be paying attention, as a reporter, to see not just what President Trump has to say in the next 30 minutes at this incredibly important class conference, but also to wait and see what the public and senators and other top echelon republicans have to say after this press conference. The president has a task in front of him. He needs to lay out what his roadmap to victory is. You mentioned the electoral count. Bloombergs Electoral College andt is beau biden at 264 the President Joe Biden at 264. The magic number is 270. That means joe bidens six electoral votes away. Shery Kevin Cirilli, as we continue to wait President Trump to hold that press conference. A handful of states left deciding the u. S. Presidency but one thing already certain, theres the Political Division across the country, protests on both sides. It could split congress down the middle. How will the future administration implement policy at home and abroad, including with china . U. S. Ng us as the ambassador to china from 2014 to 2017, and of course, he was also years, the nearly 36 longest serving senator in montana. Ambassador, thank you for your time today. When you look at the country right now, when you see this deep anger from americans on both sides, how do you feel heal these divisions, especially if you have a protected protracted election . There will be more challenges and recounts. Well, from chinas perspective, i think it is not very helpful to the United States. Discord,s disorganization. They are able to tell their formerthat that government does not work. Its not helpful to the united dates. Its also somewhat true with other countries, with allies. They are wondering if we can get our act together. Any of our allies have supported the Vice President to win this election. They would like to see a Vice President get elected because thats a country that they can work with, so it really comes down to who is elected. I tend to think the Vice President will pull it out but then it comes down to what his policies are going to be. China, it will be difficult. Hes not going to be weak on china with such bipartisan record now in washington, d. C. Joe biden is not going to move from that. On the other hand, hes going to be a person who works with international organizations, with ordinary process of diplomacy so he will be very fair but very firm. He will be someone where other countries can depend upon them for at least being consistent. Will not engage in diplomacy with his twitter account. Most other countries find that comforting. Shery does that mean it will not be too difficult to get members from both sides of the aisle to agree on Foreign Policy when it comes to issues like china or even allies . Splite if we do see a government and a protracted, contested election, does that mean the Vice President will have less Political Capital to spend . All, thek, first of president has immense foreignpolicy power. He does not have to deal with congress on a lot of issues and when he doing with foreign countries. More the issues are economic, the more he has to think about congress. Tariffs, invoked under emergency action, it took no approval of congress. These tariffs did not require approval of congress. I think you will find that joe biden, if he is president , will rescind those tariffs. He will get chinas respect. We will not be able to advance the ball with china until china respects the united dates. The chinese understand strengths, they understand strengths more than other parts of the world. They couldnt smell weakness from a mile. The United States has to be strong. We can find better accommodations than we have had. Haidi do you see more carrots than sticks under President Biden . Im sorry . Carrotso you see more than stick approach under President Biden . I see both. I see a President Biden who understands china. He knows president xi jinping quite well. They met many times. They have spoken personally a good it. You will find vice President Biden saying lets find out what works and be very pragmatic. He will still respect american ideals. Human rights, for example, in hong kong. Its very important for Chinese People to see america stand up for historical values. He will want to stand up for our historical values but also want to be very firm with china. Haidi we have seen in the last few days the exit of the u. S. From the paris agreement. The return to engage with global institutions. Return of u. S. Multilateralism to engage in with global multilateral institutions . I do. I think the inclination is to see if they can find a way to advance american Foreign Policy through multilateral organizations. Othero, the imf, nato, organizations of the kind. First and foremost, he will be practical and see what works. Work towards joining them if he sees progress. Another big one is tpp. I think its a big mistake for the United States to withdraw from the transpacific partnership. Big mistake. We showed Southeast Asian countries that may be they cannot trust us americans. Maybe we will not be there as much as they would like us to. I hope President Biden, if you youselect it, he will if gets elected, he will not do it immediately. He will find a way to deal with tpp in a way that restores confidence in Southeast Asia that we americans are participating, that we are there, and also as a way to show we are not taking jobs away. President ake that trump and democrats made in opposing tpp was if you did not pay enough attention to working people, they thought they would lose jobs. We should have done a much better job there. Shery with the United States was drawing from those organizations, how much has that benefited beijing in trying to extend their influence . Think it has helped beijing a lot. Beijingnk it has helped a lot. It has put people in various key positions around the world. The World Health Organization is an example. Standards technology setting organizations. Obviously, they are putting their people at those standards and probably, the standards will be more to the liking of Chinese Companies so we left it back here. We left a void. It is a big problem. A lot of my chinese friends are telling me they hope biden wins. Why . It will show that american democracy works. Its important to a lot of people in china because they think they will see that that will help them with reformers in china. More americans are belligerent to china, trying to put china down, the more that strengthens the hands of the hawks in china. President xi looks at the hawks, the reformers, trying to figure out where do we go from here . We are trying to strengthen the hands of the reformers and president xi will listen to that. Haidi appreciate your time with us. Max baucus, ambassador to china. Speaking with american universities representative about the Record Number of women who will be serving in the 117th u. S. Congress in our statement, just ahead. This is bloomberg. Shery before any races were even decided, women made history in the u. S. Election. A Record Number of female candidates ran for office in 2020 and we know now that at least 131 of them will serve in the next congress. We are joined by the director of the American University of women in politics institute, betsy fisher martin. Give us your take on how big or how much roberts we have made here and how much more is left to go. Betsy when you run an institute on women in politics, this is a good news story for us. Woman, the year of the more women were elected, Record Numbers were elected after the 2018 midterm. We are building on that success. What is different about this election cycle is that a lot of the gains we are now seeing for women in congress are coming from republican women. That was not the case two years ago. Two years ago, 35 new Democratic Women were elected to the house of representatives, and only one republican woman. It was a big wakeup call for republican women, that they only had one new member entering congress, and so, they really went to work recruiting and funding, especially during the primaries process. Republican women to run and the results have paid off. Interrupt you. We have President Trump at the podium. Lets listen in. Pres. Trump good evening. I would like to provide the American People an update on our efforts to protect the integrity of our very important 2020 election. Votes, iunt the legal easily win. If you count that you legal steel they can try election from us. If you count the votes that came in late. We are looking at them very strongly. Wonve already decisively many critical states including massive victories in florida. Iowa, indiana, ohio. To name just a few, we won these and many other victories despite interference from big money and big tech. Numbers andstoric the pollsters got it knowingly wrong. Everybody knew it was ridiculous. There was no blue wave that they predicted. T was done for instead, there was a big red wave and it has been properly acknowledged by the media. They were i think very impressed but that was afterthefact and it does not do us any good. We kept the Senate Despite having twice as many seats to defend as democrats and in a really much more competitive state, we did a fantastic job with the senate. I think we are very proud of what has happened, many more seats to defend. They spent almost 200 Million Dollars on senate races in south ,arolina and kentucky alone hundreds of millions of dollars overall against us. At the national level, our opponents major donors were wall street bankers and special interest. Our major donors were everyday citizens. Yet for the first time ever, we lost zero races in the house. I was talking to Kevin Mccarthy today and he said he could not believe it. Zero races. Very unusual thing. Which iany new seats think many more on the way. This was also the year of the republican woman. More republican women were elected to congress than ever before. That is a great achievement. The largest year of nonwhite voters of any republican in 60 years including historic numbers of latino, africanamerican, Asian American voters, the largest ever in our history. We grew our party by 4 million voters, the greatest turnout in Republican Party history. Of thets are the party big donors, the big media, the big tech, it seems, and republicans have become the party of the american worker, and that is what has happened. We are also i believe the party of inclusion. Recognizes, media polling was election interference in the truest sense of that word. By powerful special interests. Polls, phony polls, fake polls, were designed to keep our voters at home, create ,n of momentum for mr. Weidmann and diminish republicans ability to raise funds. They were what is called suppression polls. Everyone knows that now. It has never been used to the extent that it has been used in this last election, to highlight just a few examples, the day before election, quinnipiac, on every wrong occasion that i know of, how joe biden up to five points in florida. And they were off by it. 4 points and i won florida easily, me losing they had florida by a lot and i ended up winning florida by a lot. Other than that, they were very accurate. Ohiocame up four points in and they were up by 12. 2 points. And i also won ohio. Great state of ohio, very easily. The Washington Post said biden was up 17 points in wisconsin and it was basically even. They were up by about 17 point. And they knew that. They are not stupid people. They knew that. Suppression. There are only a few states yet to be decided in the president ial race. The voting apparatus of those dates were won in all cases by democrats. We were winning in all the key locations by a lot, actually, and then our numbers cited miraculously getting whittled away in secret and they would not allow legally permissible observers. We went to court and a couple of instances and we were able to get the observers put in. They wanted them 70 feet away, 100 feet away, outside the building to observe people inside the building. Case. Won a big lots of litigation. Litigation,our theres a tremendous amount of litigation generally because of how unfair this process was. I predicted that. I have been talking about mailin voting for a long time. It has really destroyed our system. It is a corrupt system. And it makes people corrupt even if they are not by nature. But they become corrupt. Its too easy. They want you to not find out how many votes they need. And then they seem to be able to find them. They wait and wait and then they find them. You see that on Election Night. Carolinahead in north by a lot. Tremendous number of votes. And we are still ahead by a lot. But not as many. Because they are finding ballots. We have some mailin ballots. Those mailinow ballots are so onesided. I know it is supposed to be to the advantage of the democrats but in all cases, they are so onesided. We were up by nearly 700,000 votes in pennsylvania. Won pennsylvania by a lot. That gets whittled down to i think they said now we are up by 90,000 votes and they will keep coming and coming and coming. They find them all over. And they dont want us to have any observers although we won a court case. The judge said you have to have observers. And they are appealing. Actually, they are appealing. We won a case that we want people to watch, that we want observers, and they are actually appealing, which is sort of interesting. All we want to do is have people watch as they do the vote tabulations. By a lot, ai won lot, with a lead getting close to 300,000 votes on Election Night in georgia, and by the way, got whittled down, and now, its getting to be to a point where i will go from winning a lot to perhaps being down a little bit. In georgia, a pipe burst in a faraway occasion, totally unrelated to the location of what was happening, and they stopped counting for four hours and a lot of things happened. The election apparatus in georgia is run by democrats. Of 300,000. Margins we were way up in michigan. Won the state. In wisconsin, we did likewise. Fantastically well. That got whittled down. In every case, they got whittled down. Today, we are on track to win arizona. Thenly need to carry 55 of remaining vote. Margingins and that is a that we have significantly exceeded so we will see what happens with that but we are on track to do ok in arizona. Our goal is to defend the integrity of the election. We will not allow the corruption to steal such an important election or any election, for that matter. Anybody tollow silence our voters and manufacture results. I have been doing a lot of public things for a long time. I have never had anything that has been as inspirational by people calling, talking, sending things to us. Such love andeen such affection and such spirit as i have seen for this. People know what is happening and they see what is happening. It is before their eyes. There are many instances which will be repeated reported shortly. This is a case where they are trying to steal an election. They are trying to rig an election. We cannot let that happen. , theit and philadelphia most corrupt places in our country, easily cannot be responsible for engineering the outcome of a president ial race. A very important president ial race. In pennsylvania, democrats have gone to the state Supreme Court to try and band are election observers and very strongly. We won the case, but they are going forward. They dont want anybody watching ballots. Hey count the i cannot imagine why it is. There is no legitimate reason havehey would not want to people watching this process because if it is straight, they should be proud of it. Obviouslye are trying to commit fraud and theres no question about that. Philadelphia observers have been kept faraway, very far away. So far that people are using binoculars to try and see and theres been tremendous problems caused. All of the windows so you cannot see in and the people that are banned are very unhappy and become somewhat violent. The 11th circuit ruled that in votes have been flown in by election day, that they should begin by election day and they were not. Quotes are coming in after election day. And they had a ruling already that you have to have the votes in by election day. To the best of my knowledge, votes should be in by election day and they did not that. Democrat officials never believed they could win this election honestly. I really believe that. That is why they did the mailin ballots, where theres tremendous corruption and fraud going on. That is why they mailed out tens of millions of unsolicited ballots without any verification measures what ever. I told everybody that these things would happen. Because i have seen it happen. I watched a lot of different elections before they decided to go with this big, massive election with tens of millions of ballots going out to everybody. In many cases, totally unsolicited. This was unprecedented in american history. This was by design despite years of claiming to care about election security. They refuse to include any requirement to verify signatures. Identities, or even determine whether they are eligible or ineligible to vote. Taking numbers, writing down things, the workers, and doing a lot of bad angst, and we have a lot of information coming and seegation that you will that will shake people up. The officials overseeing the counting in pennsylvania know that the key states are part of the corrupt democrat machine that you have written about for a long time. You have been writing about the corrupt machine. I went to school there. I know a lot about it. It has not changed in so long time ago. It has gotten worse. Partisan democrats have allowed ballots in the state to be received three days after the election and we think more than that. Votesey are counting without even postmarks or any identification whatsoever. So you dont have postmarks, you dont have identification. There have been a number of disturbing irregularities across the nation. Our campaign has been denied access to observe any counting in detroit. And it is another place would not say it has the best reputation for election integrity. Poll workers were duplicating ballots. In front ofed volunteers to block their view so they could not see what they were doing and it became a little bit dangerous. One major hub for counting ballots in detroit covered up the windows again with large pieces of cardboard so they wanted protect and block the counting area. These were observers, legal observers, who were supposed to be there. In detroit, there were powers of undisputed unexplained delay. It should not arrive until 4 00 in the morning even though the polls close at 8 00, the batches came in and nobody knew where they came from. Access also been denied to observe critical places enjoyed a in multiple swing states, counting was halted for hours and hours on Election Night results withheld from major democrat run locations, only to appear later and they certainly appeared and they all had the name biden on them or just about all, almost all. It is a little strange. I challenged joe and every democrat to clarify that they only want legal votes because they talk about votes and i think they should use the word legal. Legal votes. We want every legal vote counted and i want every legal vote counted. Openness and transparency. No secret count rooms, no illegal votes being passed after election day. No laws are very strong on that. We dont want votes cast after election day. They want the process to be an honest one. It is so important. We want an honest election, honest count, and honest people working back there because it is a very important job so thats the way this country is going to win. That is the way the United States will win. We think we will win the election very easily. We think there will be litigation because we have so much evidence, so much proof, and its going to end up perhaps at the highest court in the land. We will see. We think there will be a lot of litigation because we cannot have an election like this. I will tell you, i have been talking about this for many months for all of you and i said very strongly that mailin ballots are going to end up being a disaster. Small elections were a disaster. Very easy to handle elections for disaster. This is a largescale version and it is getting worse and worse every day. We are hearing absolute Horror Stories and we cannot let that happen to the united dates of america. Its not a question of who wins, we cannot let that happen to our country. By havingbe disgraced Something Like this happen. It will be hopefully cleared up soon. But it will probably go through know,l process and as you i have claimed certain states and he is claiming state. Ultimately, i have a feeling judges will have to rule, but theres been a lot of shenanigans. We cannot stand for that in our country. Thank you very much. You have been listening to President Trump give a press conference. He claims that a lot of votes came in late and if you count the legal vote, that he easily won. We know that votes are still being counted in arizona, georgia, north carolina, nevada, and pennsylvania. He has also claimed the republicans kept the senate, but of course, we know that we could use some Georgia Senate runoff so that is still in play. He talked about stealing and reading of the election, alleging fraud. We heard from the pennsylvania secretary of state, seeing no case of voter fraud he said he won georgia by a lot but as he was in, we got the latest from georgia and it appears his lead has decreased to less than 4000 vote. Fors bring in Kevin Cirilli a little bit more context on President Trumps comments. We have seen this sort of rhetoric before. Its a time he also claimed victory at 2 00 a. M. On Election Night. How much has what he is saying changed if at all . Then the first statement president uttered was count all the people votes and that appears to be what the message is coming from his reElection Campaign. Time, whereme that the votes have not been finalized in pennsylvania, nevada, north carolina, georgia, so as a result of that, it would appear that as votes are still being tallied, even in a state like arizona where several other networks have called it for joe biden, that joe biden is gaining ground in terms of the progressive parts of the cities where mailin ballots are still coming through but lets stick to the facts. We did get some new developments within the last 12 hours and that is that nevada state officials might not be able to tally votes until saturday or sunday. Georgia state officials might be headed for a recount which would take at least several days, and meanwhile, the process continues likely until late tomorrow or even on saturday in the battleground state of pennsylvania. I say all of this because it will couple of days likely from and there is going to be winner of the president ial race and the final point i would make here is you have democrats, including joe biden who spoke briefly several hours ago from asaware, who urged patience well as for all the votes to be counted, and now, you have another followup comment from President Trump paying count all the legal votes. That is a priming for a potential legal battle and the president has been quietly and somewhat publicly preparing for there to be a legal battle for quite some time. With,upon sources i talk based upon sources i talk with, both sides have a team of thousands of attorneys around the country who are bracing for the legal fight virtually as we speak. When it comes to the passive victory, bearing in mind the level of fight we have started hearing from the president , that is unlikely to be the end of the story. Take him to those critical Electoral College votes . Kevin its unknown because there are several pathways to get to that magic number of 270 in which he would quench the presidency. Right now, he is at 264. With sixda is a state electoral votes so simple math with a that he is just six votes away and nevada will put him at 270, but the president is saying that even if a state declares joe biden the victor and he surpasses or reaches to 70, that they are going to pursue legal options. To followint, we got this story, every twist and turn. We have to use patience and caution and from a process standpoint, based upon the developments of today, we are from at least one day away further finalized counts coming in. Shery kevin, we have a question from our viewer asking if there is any truth to President Trumps claim, the allegation that there was some banning of election observers at some vote counting sites . Kevin based upon the developments in the source material that we have from today, what i can tell you is that the president championed and won a legal issue in the state of pennsylvania come a battleground state, in which they will be able to have poll watchers or observers in the count facilities that are going on. That is something republicans have pressed for. Furthermore on this point, there is a huge, significant change to the Supreme Court of the United States right now that there was not, in october 28. Even though judge Amy Coney Barrett was confirmed to the Supreme Court, when the Supreme Court decided not to take up that pennsylvania Supreme Court case with regard to counting ballots up to three days after they are postmarked on election day, judge Amy Coney Barrett did not participate in that case because she said she had only been on the job a few days and said that she needed more time in order to get accustomed to it. Open for the door Supreme Court to take up future cases, so that is brewing in the background as well. Get intoys hesitant to hypotheticals, but i do think it important to note the dynamics at play as the story continues to evolve. Haidi our chief washington correspondent, Kevin Cirilli, as we heard some pretty remarkable comments from President Trump in the last halfhour. You can also turn to your bloomberg for more live coverage of the u. S. Election results. Blog forto get to our analysis from bloombergs expert editors as these developments come in. Look at markets with Sophie Kamaruddin in hong kong. We are seeing a turn when it comes to u. S. Futures right now. Is the case but for asian stocks, we are seeing green shoots after asian stocks rose to a 2018 high and the nikkei 225 continuing to outpace the topix. The yen Holding Around mid one 03 levels given dollar weakness has been a theme mid 103 levels. Downside pressure for bonds in asia. On the earnings roll call, wanting honda and nissan in japan. In tendo in focus after it boosted its profit forecast to start gaining 3 at the start of trade in asia. Lets turn to korea. Look at shopping, do to report results today and we have the kospi setting gains for a fifth straight session. The korean won continues to gain a 20 high. Ding at switching the board to check in on the asx 200, a 2018 high. Switching the board to check in a the asx 200 with th twoweek decline. The aussie dollar just slightly under pressure, headed for a weekly gain. S p emini is and losing. 2 after we saw them cap a fourth day of gains. It fell to a twoyear low. Dollar selling did resume after we got no surprises from the fomc. Switching out the board, reaction in treasuries after that update from the fed. The 10 year yield set for the biggest weekly drop since june as bond traders take stock of this shift you are seeing from short bets to going the on treasuries. Gold is slightly under pressure, off. 2 . The potential for more stimulus from the fed and boe. Wti under pressure and offshore that 660 level. The asianhaidi Market Strategist at j. P. Morgan see a turnstart to in futures. This is the point where investors have been so sanguine, even positive that the bull market remains intact and a gridlock to Senate Remains good when it comes to a lack of regulatory and taxation change . Pricing ins start some of the volatility given it seems that the president is digging his heels in for a legal fight on both sides of the outcome of the election . Thanks, haidi. The legal battle scenario is somewhat it has been discussed quite a lot in the past week, especially when President Trump talked about the potential fraud. As you rightly pointed out, until we get a clarification on the election results, we expect some degree of market volatility. You made a very important point about the potentially divided congress where some of the more significant policy shifts from either candidate is likely to face great opposition. That means life could continue putting much is preelection. From that perspective, i would think that in the longer run, over the next three months to six months and beyond, we are still optimistic on equities, still constructive, but in the next few days or couple of weeks, as we go through clarifications on the results, we may see some volatility in the market. Haidi this comes at a time where we are seeing potentially another peak and virus infections. We have seen the u. S. Being the first nation to cross 100,000 cases in just one day. Due north asian markets look as a city how safe due north asian markets look as a safe haven for Equity Investors . Absolutely correct that beyond the elections, the pandemic and policies are going to be the critical ingredient influencing markets. Asia,hat angle, i think north east asia, is in a pretty strong position, especially china, given the fact that we have in china able to contain the outbreak reasonably well. Likewise for markets like taiwan, hong kong, south korea. Dont forget, the latter three, they are exposed to the export sector and as a result, if we do see a slowdown in the Recovery Process in europe and in the states, these markets will also feel the pressure. If and when we get some stabilization in the pandemic, in the u. S. And europe, east asia, especially northeast asia, is in a very strong position. Before that happens, i think china is a better place to be in it comes to allocating equities. Shery what sectors in china would you like at this point . Tai we are still sticking to those who worked in the past six to nine months, technology, health care, some of the more defensive sectors. I think what you see right now is that a lot of investors are still anxious about potential outbreak, not just in the year so in the u. S. And europe, that is very much our call. Obviously, if you look at the broader Economic Growth in china, you are starting to see Consumer Spending picked up, especially around the time of the national holiday. To november 11. Thats a big Online Shopping day in china. I think investors will be very keen to see whether Online Shopping can continue to break records, reflecting Consumer Sentiment in china. Shery with of halting of the ant group ipo, do you have any concerns about a change in the dilatory landscape . Tai reality is that the a change in the chinese regulatory landscape . Tai if you have a new sector emerging, theres always going to be some degree of a learning curve for regulators and the industry to work together. In this particular case, i suspect it is a similar situation where the industry has grown significantly over the past five to 10 years and regulators are now trying to see what they can do to manage the potential systemic risks coming out from this new sector so i think theres going to be a bit just escutcheon and trying to work things out. But overall, i do think that in the longer run, this can offer interesting opportunities to investors. Shery Betsy Fischer martin tai hui, thank you for joining us. Still ahead, we have fed analysis. What the bank can do to boost the u. S. Economy after they have used so many tools in the box. This is bloomberg. Haidi fed chair jay powell has stressed the need for more fiscal monetary stimulus as the pace of the economic recovery moderates and virus cases surge. They remained to the pace of asset purchases. Kathleen hays is here with a recap. Kathleen, what did we get from the fed statements, from powells were markets afterwards powells remarks afterwards powells remark afterwards . From powells remarks afterwards . Kathleen he talked about the pace of the recovery moderating. Jobs are still growing but not as fast. And he says the rise in virus cases is particularly concerning. Here is a key statement from the committee. The path of the economy will depend significantly on the course of the virus. The Public Health crisis will weigh on economic activity, employment, inflation in the near term, and poses considerable risk to the Economic Outlook over the medium term. We are hearing this coming out just a day ago, the one day virus cases in the u. S. Talked 100,000 for the firsttopp topped 100,000 for the first time. We have to get the virus under control. The Health Crisis has to be under control before the economy can fully recover. Knowing the virus cases are surging, he said, even for the fed providing stimulus, they have not run out of tools. Let us listen. When i say we are not out of ammo, i am looking at, you know, a couple of our tools. The asset purchase program, theres a number of dimensions in which we can adjust that if we deem it to be appropriate. Right now, we like the job it is doing and i think we will have a stronger recovery if we can get more fiscal support when it is appropriate. Kathleen its very important to know that it is what we have been saying all day and all week. We have a congress that looks like it may be mired in gridlock. We dont even know who the president of the United States is yet. Interesting, the feds policy statement said quite clearly, no changes in the bond buying program. Buy 120will continue to billion per month although jay powell stressed we had some really good discussions so we will see what happens now. Shery kathleen, several questions about what the fed can do to boost growth now that they have done so much. Question in the last couple of hours, particularly in light of the boe coming through. With that kind of thing be diminishing results for the u. S. . Kathleen lets go right to what alan blinder said. Will the fed tools be enough to do the heavy lifting . Here is what he said. There are some extraordinary isngs that they can do but nothing comparable to what they have already done. They have already shot a lot of their ammunition. If there is no fiscal package at all, which is what we have been struggling with for a few months now, who knows what will happen during the transition period, but if we are in that situation, i think it is likely we will need Something Else from the fed. Kathleen in terms of what the fed can do, maybe institute yield curve control. The simplest thing they can do is just start lengthening the duration by longerterm bonds. In a time where we have seen some steepening of the yield curve, it is coming back down. Maybe that is a step they will take. You buy bonds, have kiwi to keep yields low and push them lower so maybe if they do something in the next few months, that is what it will become a shery. It will be, shery. Shery lets get back to our equality segment and the role of women in the u. S. Election. A Record Number of female candidates ran for office in 2020 and we know now that at least 131 of them will serve in the next congress. Lets get back to Betsy Fischer martin, director of the American University of women in politics since two. Thank you so much for hanging around politics institute. Thank you so much for hanging around. Made progress this time around. Where are the challenges ahead for female representation in politics . Did, republicans really republican women, make a lot of headway. 14 plus new women that will be coming to congress. The president ial race is not the only undecided race here in the states. We have congressional races that are undecided so it could be an even bigger number, but there are still some challenges. Even with this Record Number of women going to be in congress, this will still be under 30 of women represented in congress and that is nowhere near the equity component that we would really like to see so there is definitely work to be done. The republicans have been lagging behind them kind women on their numbers. This election has gone a long way to bring them up a little bit in their numbers but it is something that will have to build on for sure. Haidi i want to get your views on how votes were cast along gender lines in this election. Was it more to do with city, suburban, rural demographics . Why did we see that split when it comes to, essentially, if you are a woman, where you live . Betsy that was definitely a component. That is the primary component of this election, depending upon whether you are someone who lives in urban areas, you are more active for biden, rural areas, more apt to vote for trump. Suburban areas in the country, that is where you saw women, especially, being pulled back over to the biden camp, and the messages sent out from his campaign were definitely more appealing, especially when we worry about issues like the coronavirus, people taking care of their families. Moresupport really shifted over into the biden camp so we saw from those suburban women, who may have been trump voters in 2016, now casting their votes for joe biden. Turnouthat about the and the result when it comes to black voters . Was there anything interesting to you . We knew that would be crucial to bidens Election Campaign. Betsy absolutely. That has been a critical component for joe biden going back to the primaries because if you all remember, the first couple of early primary states, joe biden was not doing well at all. His campaign was on life support until coming to the state of south carolina, where black voters really put him over the top and helped him propel his way to the nomination, so in this case as well, there was a lot of outreach done to black voters, black women especially got really involved in this campaign. You know, certainly having Kamala Harris on the ticket energized back women voters, who were such a key component of the democratic party. We have seen all along that black women voters are more apt to be participating in politics, engaging, campaigning, talking with their friends, volunteering on campaigns, and it was definitely a strength area. Shery there was a big youth turnout as well. Every yes, youth cycle, we talk about younger people turning out, but it seems like it was crunched and formulated so we dont have exact numbers yet, but motherly to the black women i was talking about, Younger Voters were very energized this cycle, not only voting, but protesting, participating in politics. I have a college aged daughter who showed a lot of interest in politics, wanting to vote. There was an Energy Around young people and i have seen even my students at university. Shery Betsy Fischer martin, thank you so much for your time, director of the American University of women and politics in two. Alibaba is slowing earnings groups as well as ant groups hurdles spooking investors. We will speak with joseph about that. 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. We are still on the election watch. We have yet to see the results from the remaining seven states and we are seeing biden closing the gap on trumps lead in pennsylvania and georgia. Trump spoke at the white house, where he repeated various allegations of cheating. Pres. Trump our goal is to defend the integrity of the election. We will not allow the corruption to steal such an election or any election, for that matter. We cannot allow anybody to silence our voters. Shery we have also heard from joe biden, urging patience and projecting confidence of a win. Lets go to new york. Really requiring a lot of patience because we still do not have anything definitive when it comes to georgia, where biden seems to be closing the gap there. In a meaningful way. President trumps lead in georgia has narrowed to less than 4000 votes. 3635. Theres only just over 18,000 votes have to be counted on the majority of those are from areas that lean democratically. Its getting close and georgia. To Election Officials told us they will not have any results completed until friday and have also indicated georgia they go to a recount so it may be a while yet before we get anything definitive from there. Haidi pennsylvania was singled out. President trump calling these vote counters correct democratic machines, complaining about way it has gone about. What are we watching out for pennsylvania . That is one the president needs. Kailey the president does not have a past to 270 electoral votes without pennsylvania. To 80000has narrowed and there are still. 5 million votes to be counted and we know that a lot of votes still being counted are mailin ballots. Absentee ballots that mostly were requested by democrats and they are from democratic meaning areas like right outside philadelphia. We know there is still ongoing litigation in adelphia. They filed a lawsuit this afternoon to halt the vote count in philadelphia specifically so the litigation is still a factor but there still remains hundreds of thousands of votes to be counted in philadelphia and it could be a while before we get results. Election officials would not pinpoint any exact timing for us. Secretary of state in pennsylvania saying the closer the race is, the longer this count will take. Kailey leinz in new york. Lets get you caught up with Karina Mitchell in new york. Karina global coronavirus cases are approaching 50 million with u. S. Infections topping 100,000 cases. That is the first country to set such a mark. Numbers are striking fears of a new outbreak before thanksgiving. France is warning of a violent second wave. Facing a doubledip recession. Protesters in thailand are planning a fresh rally this weekend, one day after rejecting parliaments plan for a National Reconciliation commission to ease tensions. Aimed to gather at the monument on sunday to petition the king for constitutional change in curves on the monarchys power. The king described thailand as a land of compromise. Japanese households cut back sharply on spending compared to a year earlier. The coronavirus pandemic before the last sales tax hike. Spending fell 10. 2 from september 2019, roughly in line with expectations. August, it rose 4 . Wages fell for a sixth straight month. 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 heres a quick check on how markets are trading at the moment. We are seeing a little bit of a mixed picture with the knee can the topix gaining ground. Many k being led higher by utilities and industrials as we get little bit of weakness in the japanese yen. Remember, it was at the strongest level since march. The kospi has given that most of its gains. Flat at the moment. We are seeing the korean won also gaining ground. It rose by the most in seven weeks. We are seeing strength. The asx 200 at the moment being led higher by materials and consumer construction mary discretionary stocks while kiwi stocks are gaining ground. We will be watching alibaba shares when trading kicks off in hong kong after the company saw its lowest Revenue Growth on record. That adds to investor anxiety over the tightening regulatory scrutiny over jack mas ant group. Joining us now is joseph berger. He specializes in chinas digital economy. Thank you so much for joining us. Inalready saw the reaction the u. S. Session of alibaba. They did not necessarily like the Earnings Results and they were also a little bit spooked by the antipo ant ipo. Tell us your results. Joseph sure. Thank you for having me. The result today were in line with our expectations for the quarter. September quarter is not a high promotion period for alibaba. Every person growth as they demonstrate in this past quarter. We think it is a testament to their ability to continue to deliver highvalue to their consumers and merchants. And we are clearly seeing a shift in online spending. Moving from offline to online. I think the pandemic is helping that. We think that trend is going to continue. On the merchant side, to give you some context, we survey merchants every month to get an understanding of their sentiment across all the major ecommerce platforms. From the results that we are seeing, merchants are feeling quite positive about what they get on alibabas lap form, especially leading up to singles day, which was happening this month. Singles day is the largest one generating over 30 billion in sales last year in a single day or at least in the week leading up to singles day and we anticipate this singles day will be just as big if not bigger than last year based on some data we are seeing. Shery given what you are telling me about the optimism over alibabas business, does this mean that the stock some that we saw in the u. S. Session is perhaps with investors being spooked about what happened with ant . Do they have reason to be spooked right now . Joseph well, the way that we look at the ecommerce market is a more longerterm view versus the events of late which are more sentiment driven than they are fundamentally driven. If you look at the ecommerce market in general, only 25 of Consumer Spending is online right now. Though there is still plenty of room for ecommerce platforms to grow over the coming years. Not evaluatee do the stock price, if you look at the fundamentals, they still show to be a strong and i think the pandemic has only helped to accelerate some of the transition from offline to online. Becoming know that a real competitor. Is there a chance that that got close across other sectors as well . Joseph we think, based on the data we are tracking, it is clearly a good competitor at the low end of the marketplace. Very pricesensitive consumers using it, and it it has clearly competitoretitive to alibaba. Alibaba is so much bigger, so much more clout in the marketplace, and merchants continue to leverage alibabas strengths and continue to stick with them. We think at the upper end of the market, jd has clearly established themselves as the higher tier player. It is the only integrated solution in providing both delivery and direct sales. We think jd will continue to grow and they are growing faster and our data points to them having a much stronger competitive threat to alibaba in general. How concerned are you about what is going on with ant financial at the moment . Does this tell you that this is a stance that regulars and the government has taken and that will affect alibaba as well as the rest of the tech and ecommerce sector in china . Joseph well, so we look at the ecommerce sector. Obviously, ant is in the Financial Sector and competes more in the banking side, but as it relates to alibaba, what we look at is ant is very important to alibaba transactions in that they provide Financial Services to the consumers on alibabas platform. So we will look closely and continue to watch that and see if those Services Change over time and what impact that might have to the type of transactions that a consumer can make today on alibaba versus what might happen in the coming months. All right. Joseph berger joining us with his views on the alibaba results. We focus on the chief simtech officer about those applications of the ant ipo delay and the initiatives to regulate the simtech markets. , theys kind of big tech have been here for quite a while. Back inained 2016. Theyve also been granted license for the ritual bank. I think they will continue to play an Important Role in hong kong. Given the likelihood that were provided for in hong kong, there were no red flags that were glaring during the prospectus being issued . Nelson so far, we dont see any. Are there any other potential black swans that could pop up . Nelson i dont see any sign of that. Scene, the simtech this is one player but you see many players are in town is also they are getting with each other. Other simtech heavyweight hopefuls, what could we learn given that there may need more scrutiny to the operations . Nelson if you look at the past four years, horizons, some of iem are working very well and think that is important to have a clear and easy to framework. The suspension dampen appetite in hong kong . Nelson if you look at some of the speakers within the past three days in the simtech week, be it investors or tech players or even the incumbent financial i see somes, investors see asia and particularly hong kong is one of the major places they will see a lot of simtech development. Sophie reining in risk to the financial stability, that is part of the reason that was provided by regulators in china for pulling the ant ipo. How do you strike a balance between driving innovation in simtech while also monitoring how they play . Nelson that is a very great question. And that ismore exactly what we are trying to do. In the past four years, we have talked about the factor payment system, the successful launching of virtual banks in hong kong, and also the operators. Are a next era, there number of new initiatives we have launched in the past couple of days, for example, the cdi we just mentioned, the crossborder platforms, and also for the bank of thailand and possibly other jurisdictions. Sophie Digital Currencies will eventually be a key part to these linkages. Nelson trade at the end, payment is one important part. That is why we have this crossborder initiated initiative. Sophie the pboc is possibly one partner they say they are signaling. What steps may be taken to further that goal . Nelson it is being tested in multiple cities in china so if the pboc has a plan to roll out crossborder for china, hong kong hkma will welcome this position and we stand ready to cooperate with the pboc. Sophie part of that readiness, is the Legal Framework being put together . Nelson you look at the usage of rmb in hong kong, we have been using it for years. We dont see that as a hurdle. Shery hkmas chief simtech officer, nelson chow, speaking with Sophie Kamaruddin. We have a big guest coming up later. Do not miss our exclusive interview with a group ceo of standard chartered, bill winters. 10 45 a. M. Hong kong time. It has been a difficult year for banks. Up next, we will take a look at what the policy priorities should be for whoever wins the u. S. Election. Our guest joins us shortly. This is bloomberg. Perhaps a president like joe makingho is focused on and compromises, might be a very positive outcome going forward. I have been in a room with then vice President Biden and majority leader mitch mcconnell. And they can work well together. The combination of potential stability from a legislative standpoint, from a tax standpoint, plus the potential outlook for therapeutics coming hopefully in the nearer term horizon is allowing people to start to plan ahead and some reasonable fashion. We have to take a step back from the election even though that has been the central focus over the last couple of days, and realize that covid is really what is driving this market and this economy. That is going to decide how we open across the country. That will decide what kind of stimulus packages we get. It is going to decide how the fed and powell move forward. The more unstable things are in the next 60 days home increases the probability we get an even bigger the other thing is it is all clear. They made it clear that taxes are not going up and people can go buy risk assets. Some guests on bloomberg tv earlier talking about postelection stability. Ther wins whoever wins white house, the country is deeply divided. President has to revive an economy hit hard by the pandemic. For a sense of what the policy priorities should be, we are joined the president of the peterson institute, adam posen. Always great to have you on bloomberg tv. We have been talking about the fact that the Biden Campaign has been run very much into undoing the policies of the trump administration. Is it enough to be the antitrump should we have President Biden in the white house . Adam it does a lot of good but it is not enough in terms of healing wounds or changing the democrats fortunes, so the president has in normas power through executive order. Enormous power through executive order. They will not have a majority in the senate, it looks like. Will do a lot of governing through executive order. A lot of things trump has done, he can reverse or stop doing, but will that satisfy people . No. They can band on some very big promises and proposals and they are not going to be able to get those through. Haidi how do you bring the two sides together when it comes to the country that votes for a President Biden, i should say, and the victim and passion we see from President Trump supporters out there . What of the policy priorities that could potentially close that chasm . Adam its a really good question and i am not sure what they are. Unfortunately, i think the two that are most likely to get commonality is an aggressive stance towards the chinese leadership. I think whether or not you feel that is justified, i think that that is going to be a unifying theme. And i think another unifying be, wheneverg to we have a vaccine, trying to rally people around adjustment to the disease. There is a glimmer of hope that senator mcconnell and the republicans in the senate will agree to a fiscal package now that the election is over, and that also might provide some rally, but i have to admit, i am pessimistic. None of these i think hell divisionhea heal visions. Heal divisions. Some more seen isolationist tendencies coming from the trump administration. If we do get a biden administration, can we go the other way and reverse a lot of the backtracking that has been done in those years . How helpful would that be to the economy . Adam great question. I think the answer is yes, we can, but two big buts. Yes, the president could come in and draw a lot of the tariff threats. The president could come in and announce we are rejoining the paris accord, rejoining the wto, or rather, we are not talking about pulling out. They could make a big point of working multilaterally with japan, e. U. , on common approaches to china. Are in ao big buts country that is this a divided and we are so much is being done by executive order by who happens to be president , how much can the rest of the world count on the u. S. Right now . Ad this is why we are pushing project recall rebuilding the Global Economy. Its about how we can knit back together for everyones benefit, including a way that the u. S. Is willing to do but is credible. There were problems in the multilateral system because of the chinau. S. Division, and that is surmountable, but it would take a lot of work. Shery i have read your latest research on rebuilding the Global Economy and you talk about this corrosion of globalization as well. I do want to ask, are we seeing a backtracking of globalization or has globalization just changed forms in the sense that a lot of the trade data does not track some of the movements we already see from Software Services and the likes of other products that are not counted. Adam you are absolutely right to broaden the focus. The emphasis tends to be on trade and not just on trade, but goods trade, manufacturers, and that is a very small slice of global integration, global commerce. Global commerce is services, intellectual property, movements of people, crossborder mergers, finance, educational flows. This is why i invoke the image of corrosion because globalization is becoming more uneven. There are more holes in it. We have seen tpp go forward. He seen various countries conclude trade deals in various efforts including by china to reach out and give more money to developing countries so it is not all one picture. A veryt has happened is great deal of distrust is built into the system so where you have simple technical fixes like the Central Banks working together in march and april, it works really well. Where you have highstakes things that require some amount of leadership and vision and trustlike distribution of vaccines, the system is not working so well, so that is where we have got to push ahead. Globalization is a very mixed bag but the on the evenness we are having now comes from the u. S. In the first instance. Haidi we have seen of course that the multilateral efforts of china really take place in this part of the world with other as welleral agreements as the investment in developing countries. You go back to that davos beach. There was a moment in time speech. There was a moment in time where we thought china would be the new liberal champion. Do you still believe american sectionalism exceptionalism can come back . Think the choices remain for both the u. S. And the chinese. Countries like australia, new zealand, singapore, japan, korea, mexico, canada, the wholeness, especially the e. U. , what they can do to try and make the system works, it turns out that they are not playing right. Its very welldocumented and i know bloomberg and colleagues of bloomberg have covered this. China is not making a lot of friends right now. In some ways, it is behaving well. In a lot of ways, it is really angering people. I have warned chinese officials back in 2014, i think, that the belt and Road Initiative could backfire on them just like the u. S. Like it did in latin america. People dont like being bossed around. You know, and we are seeing backlash on a lot of chinese money already. Istralia of course right now incredibly at odds with china. Canada. Covering themselves in glory right now. Before we let you go, we have to talk about miner story of the student minor t minor story. Adam the fed is not out of ammo if something goes wrong but they are out of ammo for reporting recovery and that is why the emphasis from jay powell and others has been for fiscal policy so i think i would ask the fed to be largely sitting on the sidelines. The boe is a different matter. The bank of england did announce bigger than expected quantitative easing increased today from an extended period, but they are not sure how bad exit will be. I expect a move to negative rates at the february meeting. Shery adam posen, thank you so much for that. Peterson Institute President joining us from d. C. You can also turn to your bloomberg from our live coverage of the u. S. Election results. Go. O tliv < that is it for daybreak asia. Our markets coverage continues and of course we are watching the u. S. Elections closely. This is bloomberg. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save hundreds on your wireless bill. Plus, get 300 off when you buy the Samsung Galaxy note20 ultra 5g. Learn more at your local xfinity store today. Tom it is 9 00 a. M. In beijing and shanghai. Welcome to Bloomberg Markets china open, im tom mackenzie. David im david and glass. Counting down your last session of the week on the chinese mainland and here in hong kong top stories today, still talking elections, america awaiting the outcome of the election. Seven states now hold the keys to the white house as President Trump again alleges corruption. Joe biden