Republican leader Mitch Mcconnell says President Trump is right to protest the vote cap. The u. S. Sanctions more people in hong kong over chinas increasing control. Washington has suspended its treaty with hong kong and ended reciprocal treatments on shipping. Haidi lets take a look at this market situation we are setting up for. It is firmly risk on after all the really bullish view overnight on account of the high efficacy from the biotech vaccine. Asx 200 trading higher by 1 10 of 1 . It is a handful of asiapacific markets there is or going into overboard territory. One of those is new zealand. We are seeing kiwi stocks of about 9 10 of 1 . We have the rbnz decision ahead of us this week but that market is up now for six consecutive sessions. Nikkei futures reversing pretty dramatically at the moment. Above looking at opening 25,000 for the first time in 30 years. Trading at thell highest since november 1991. A quick look when it comes to u. S. Futures as well. S p active futures up three tents of 1 after peering the bulk of those gains on expectations that an effective widespread vaccine could mean less need for a big stimulus package. Lets take a look at what is fueling the global rally. It is the apparent progress of the covid19 vaccine. Pfizer and biontech has reported positive results from their trial which could pave the way for a treatment being available by yearend. Thats bring in michelle cortez. Even Anthony Faucher this development extraordinary. Michelle it is absolutely extraordinary how quickly this has gotten to potentially reaching regulators and perhaps people around the world. We have to remember that this virus has not even been around for the past year. That isa vaccine potentially 90 effective against it is really amazing. Not only that, no one was expecting weve been hit these kind of levels of effectiveness. They would have expected 50 . To be almost double that is truly remarkable. What about the United States, 10 million cases now . Is this a case where weve had infections in the past concentrated and going up again or is it the case of a very large, diverse country with areas that have not gotten the virus where we are seeing the biggest gain . Michelle absolutely the second point. The United States is a huge country and early in the outbreak in march and april, we were seeing intense pandemic conditions enclosed areas like new york city and boston and parts of northern california, washington state. Now what we are seeing is virtually every county in the United States has high levels of coronavirus. That is particularly concerning. On the one hand, it can be spread out some more people are bearing the weight of the other hand, many parts of the United States do not have the kind of infrastructure of major cities. If you get tohe pnthere isr entire 10 bed icu populated with coronavirus patients, someone with a car accident will have nowhere to go. For the this real risk entire u. S. Hospital system and that is where the concern is right now. Haidi as the president elect warns about a dark winter, he has assembled this virus, covid task force. Tell us about the individuals that make up the task force, what kind of task they have ahead of them and what to expect. Michelle we are hearing from president elect biden that there is this dangerous winter ahead and that people need to be really cautious and conservative about social distancing and wearing their masks. Even as we are hearing excitement about the pfizer and biontech vaccine, that will not be available in any large numbers until the spring or even past the summer. It is this idea of masking and keeping your distance that is important. President elect biden has really emphasized this sort of effort. We are expecting hes going to urge mask mandates across the United States and he has brought in these leaders. David kessler, former fda commissioner. A republican appointee. David murphy, hes involved in the u. S. Surgeon general. He has been doing a lot on healing and reaching out. Other researchers, academics who have been very involved in developing drugs and vaccines, and inpatient care. Hopefully we will get a lot of progress here. Kathleen thank you to michelle cortez, working around the clock and around the world for all of us here at Bloomberg Television and radio. Lets get to Karina Mitchell with the first word headlines. Karina thank you. The epidemic is high on president elect bidens mind. Hes repeating his warning of a dark winter ahead as u. S. Coronavirus numbers continue to rise. The covid19 Response Team even as a senior republican on capitol hill says President Trump is 100 within his rights to challenge the Election Results. Mitch mcconnell says possible voting regulators irregularities must be investigated and the president has no obligation to accept media claims. President trump is shaping things up at work. He has fired his defense secretary for not being sufficiently loyal. Mark espers relationship with the president soured after he resisted white house pressure to use active duty forces to quell protests earlier this year. His departure may indicate a postelection surge. Two defense secretarys less than two years. The European Union will impose 4 billion of tariffs on American Goods later tuesday in the latest escalation of their 16 year dispute. Brussels says it prefers a negotiated settlement and would drop new duties if the u. S. Drops tariffs on you goods last year. The levees target a wider range of u. S. Products. Brexit talks resumed in london as the two sides seek a lastminute deal with pressure from the u. S. Thracian agreement. Demand ais refusing to controversial bill that would breach international law, despite president elect joe biden saying it would harm usury u. S. U. K. Trade relations. The house of lords is threatening to stop the bill, although it prevents the chamber from having the final say. Global news 20 for hours a day on air and on bloombergquint take, powered by more than 2700 journalists and analysts. Im Karina Mitchell. This is bloomberg. Haidi. Gains softbank tops tech as the vision fund posts a record profit. We get more. Coming up next, Tpw Investment Management cio joins us to talk about Market Action overnight with claims of a vaccine could spell danger ahead for tech stocks. This is bloomberg. Kathleen asian markets poised to react to positive vaccine news that sent u. S. Stocks surging. The rally fizzled on the prospect of weaker stimulus. Joining us to add up how these forces are affecting global cofoundery pelosky, of Tpw Investment Management. Jay, how are we supposed to interpret the markets actions today . Huge move up. The s p 500 got to 3660. Then as the day wore on, stocks pulled back. Still got positive gains except the nasdaq. Is this a great day for stocks, failure, more of the same . Jay i thought it was very interesting. The point that struck me was the s p before the open was up about 1. 3 before the pfizer news. Itn the surge you mentioned, has given it all back and closed roughly where it was before the vaccine news came over the tape. Is the market telling is that a vaccine is worth nothing . I think that is a complete misread. We see this as further clarity. Our focus has been on clarity around the elections, stimulus and a vaccine. The last several days, we have gotten clarity on the election at least at the president ial level, as well as a vaccine. The complete surprise coming out of nowhere. To us, this is kicking off the rotation trade which is both sectoral in factor as well as geographic and multiasset. We are at the beginning of significant moves across assets around the world. Kathleen my followup. Is this a classic case of a lot of people uncertain but they are willing to trade this market especially on a big story like pfizer vaccine. Just taking profits and getting ready for their next opportunity to buy something and sell it and put more money in their pocket. Jay that is a great question because you did see some significant rotation internally. Our view for several months has been that stimulus, plus a vaccine means higher Interest Rates which are kryptonite for technology. A vaccine completely eliminates the work from Home Technology stocks because it what has it done to Interest Rates go up and tech valuations go down because of cash flow issues. Opportunities that in the deep cyclicals like airlines, energies and financials, things like that which is the growth of value spread is at alltime highs. That is why we think we are just at the beginning of the move from growth to value, from defensive to cyclicals. We believe Global Leadership is shifting away from the United States, first to asia and then to europe. We believe we are at the beginning of a bear market in longduration sovereign debt particularly in developed economies. Haidi take a look at this line. U. S. Junk bond yields plunging to a record low of 4. 56 , falling a mess of 45 basis points in the monday session. We have been seeing this trend of risk dropping since the fed intervention. Vaccine hopes playing into it as well. Is this a fed story, a money supply story or longer stability story that is playing out in this part of the bond market . Jay i actually think we are at the beginning of a significant global synchronized economic boom. I think the next two years, 2021 and 2022 are going to be very robust years for the Global Economy and very robust years for risk assets. In regards to the fed, thought last week, we had a fed meeting and no one cared at all. Is a clear sign we have shifted focus from Monetary Policy to fiscal policy. We got the Political Engagement with fiscal policy that you dont have with centralbank action. We have liquid record liquidity, stimulus likely to continue. We have the chinese and u. S. Consumer very robust and we now have a vaccine likely in the next couple of months. I think opportunities exist in the energy sector, deep cyclicals, european financials. There are many things throughout the market that are still down 40 , 50 . From their 52 week high. Still down 10 from its 2018 hi. There are opportunities throughout the markets in my opinion. Haidi are you still seeing those opportunities in north asia . I know china and japan have been among your favorites. We know the story for china. Looking for more support of ecodata to continue that story. Japan has recently awakened when it comes to Risk Appetite, right . Jay that is 100 right. I actually wrote about it in the weekly musings last week, saying it was the highest bull Market Leader of probably alltime. Japan has been the best performing market, not just major markets, but including e. M. Over the last three months and nobody has cared, nobody has bought in. It is an example of a market that has significant upside as a cyclical play on china and just one of many areas where we think we should be looking at 20 to 30 gains over the next 12 to 24 months. Haidi always appreciate your time. Jay pelosky, cofounder of Tpw Investment Management. The u. S. Continues its response to chinas crackdown on defense in hong kong. We will have the very latest from the city next. This is bloomberg. Haidi the u. S. Is imposing more sanctions and its continuing response to chinas crackdown in hong kong. The Trump Administration previously suspended its extradition treaty with the city and reciprocal tax treatment, and sanctioned senior officials, including chief executive carrie lam. Stephen engle is in hong kong with the latest. What are these latest measures . It is interesting timing, coming less than a week after the u. S. President ial election and the presumptive new president coming in a few months. Still some uncertainty but it looks as though the Trump Administration through the Treasury Department is continuing to ramp up the pressure on china on the crackdown in hong kong. I say that crackdown because hong kong does not view it as a crackdown and others see it as just that with the National Security law coming down at the end of june. The u. S. , as you just said, has removed its special trading privileges to hong kong among of other other steps including suspending the extradition treaty, ending the reciprocal tax treatment. Sanctioning senior officials including the Senior Executive senior lamb. Carrie lam. The Treasury Department has added four more chinese officials to its specifically designated nationalist but again, it did not get further description and the four were not named. China to those earlier moves responded by calling them ron moves by the United States and y have also retaliated retaliatory measures against u. S. Senators as well as human rights activists but did not take steps against trumpet been attrition officials themselves. You might ask again, the timing. Bidenpresident elect joe could be taking a different tact on j beijing and steps against hong kong. The president elect has a long history of strongly criticizing china on its human rights act record, including the crackdown on hong kong. The jury is still out on that. The muted response coming from beijing. Not necessarily outwardly congratulating joe biden. It has been fairly muted there has been no public congratulations from president xi jinping yet and the ministry of Foreign Affairs and its regular afternoon briefing sidestepped questions about the trump trade deal with china and other questions about the transition in washington. Kathleen it looks like, according to our Bloomberg News report, that opposition lawmakers in hong kong are preparing to resign. If you like they have a ball in their court that they can start using. Stephen yes and no. But if you resign en masse, where is opposition going to come from from the Legislative Council . This is a move of protest. What they are hearing as a possible move later today with a National Peoples congress in beijing, the Committee Meets for 10 days. There has been reports they may make a move to disqualify prodemocracy legislative forcil members in hong kong various steps over the last year and a half, including the filibustering moves on some controversial legislation which beijing has not been happy about. Legislators, the Founding Member of the civic party, as well as the civic party leader, the civic party and a functional constituency representative. This is what the democratic chairman had to say in hong kong when the camp said they would resign en masse if those four individuals or if any individual is disqualified beijing by beijing. Quit together at the National Peoples congress disqualifies all of us. It will be the strongest objection to this ridiculous decision. Two opposition lawmakers already toit in september 2 protes protest this. Several lawmakers Face Criminal Charges stemming from the protest as well as a may 8 filibustering and slow approach in the Legislative Council. That led to a scuffle back in may. So, the Legislative Council opposition side, right now as it stands, if these four are disqualified out of the 70 seat body, there will only be 16 members left. Our chief north asia correspondence Stephen Engle on the situation in hong kong. Covid andout of pharma developments. Eli lilly has been granted emergency use authorization by for the giving them way particular antibody drug. A joint trial involving this as well as remdesivir being stopped at couple of weeks ago in october due to a lack of efficacy in late stage covid19. We are hearing the antibody has been granted emergency use authorization by the fda. We know that eli lilly about a month ago announced an agreement with the u. S. Government to supply 300,000 vials of this neutralizing antibody if the emergency use authorization is granted to squash covid19. It looks like that has been granted by the fda. Kathleen more exciting news on the vaccine front. Ofs put get a quick check headlines. Tesla delivering more than 10,000 vehicles on the mainland last month and exporting over 10,000. Chinas wider buyer market expended by 8 in october year on year. New Energy Vehicles accounted for 144,000 sales. The fourth straight month of gains for car deliveries in china. Softbank is said to be in talks to sell boston dynamics to hyundai for 1 billion. That would mark another twist in the boston dynamics drama. It was spun out of m. I. T. In the early 1990s. It was independent until being bought by google in 2013 before softbank stepped in four years later. The company is seen as producing machines that are technologically advanced, but still unprofitable. Adobe is to acquire privately held Software Maker work front for about 1. 5 billion for the utahbased company write software that lets workers collaborate and manage products. Shares have risen 46 this year, fallowing the company at 230 billion but it has been short of collaboration as more people work from home. The deal is said to be complete in a few months. Beyond meat plunged in late trading, down as much as 27 . To 95sales rose just 3 million. Earlier, it had been collaborating with mcdonalds to create plantbased burger patties. However, mcdonalds would not confirm the claim. Haidi lets take a look at how we are sitting up in asian markets. U. S. Stocks pairing the rally amid anxiety over the size of the stimulus. And more effective and quicker than expected Coronavirus Vaccine. Take a look at aussie yen, we are seeing that. That price action continuing to play out in a more subdued way. Tradingear yield also just a little bit lower. Back in gains when it comes to trading in singapore. Gold futures looking like it will be a little bit of recovery after 100. The risk on sentiment continues. 25,000225 opening about for the first time in 30 years. Trump up next, president firing his defense secretary mark esper, potentially signaling a postelection surge. We get the latest from d. C. Just ahead. This is bloomberg. Karina i am Karina Mitchell with the first word headlines. Coronavirus numbers continue to surge with the u. S. Topping 10 million cases. New york state is reporting new hotspots. Germany has more severe infections than at any time in the pandemic. Hungary is tightening its lockdown in the president of ukraine has now tested positive. France says its restriction seem to be working. In other news, iran has reacted cautiously to the prospect of a joe biden presidency, calling its simplest the. Reopening talks on the nuclear deal that President Trump abandoned. The Foreign Ministry says there is still time for the u. S. To stop the wrong move it has taken, but thinking that they can agree on a new deal. Myanmars ruling party is claiming victory with the second post military election, saying it has won enough seats to retain power. The National League for democracy is on course to claim 74seatts of the 6 national assembly. She has been criticized for failing to deliver in the previous government. Global news 24 hours a day on air and on bloomberg quicktake, but 2700 journalists and analysts. Im Karina Mitchell. This is bloomberg. Kathleen thank you so much. Now lets get right to our own Sophie Kamaruddin for a look at the markets. Investors able to shift Market Leadership. They are feeling vindicated right now. Tech shares under pressure in sydney while tourism related names, financials and services are gaining following the rotation we saw on wall street. Even amid caution, the deployment of global vaccines will take some time. A fresh alltime high, watching for the nikkei to cross the 25,000 level and gaining ground. Updating the call on u. S. Stocks to bullish, cautioning that we could see a haven trade and the risk aversion on tech being disowned along with gold. Gold back below 1900. Seeing a little bit of gain but still under the 1900 level. Oil under pressure after the biggest jump in sometime when it rose over 8 overnight. The yen back above 105 as havens get dumped. 76 aussie yen go back above and citigroup saying buy this after the best jump since june. We have seen the yield curve drifting higher. The aussien steepening. And with yields rising, citis Robert Buckler saying australia and the u. K. May be waiting towards financials on the benchmark stocks and sydney gaining more than 3 . Kathleen thank you. President trump has fired defense secretary mark esper, blaming him for not being sufficiently loyal. Our White House Reporter justin is watching this and other Key Developments in washington. Justin, does this really mean anything in terms of what happens next with so little time left for trump . Justin i think it is a largely symbolic act by the president who has been upset with mark esper over a number of controversies over the last few president cluding the has not worked with democrats in congress in an effort to strip confederate names off of u. S. Military bases. I think he was frustrated the president or that secretary esper had not been more supportive of the president s efforts to deploy the national confront military to protests that were happening over the summer. So because of those issues, it seemed like the president wanted to personally accumulate esper more than enact new policy change because there are only a couple of months left in the administration. We are also watching for the republicans to respond to the lack of a concession from the president. The Senate Majority leader Mitch Mcconnell is saying the president has the right to fight the vote count. Justin and only a few Senate Republicans at this point have congratulated president elect biden over his victory. I think as long as the president holds out hope or continues to contest the election, you are going to see republicans fairly reluctant to publicly acknowledge the results. That, i think, is a testament to the president s standing within the Republican Party because republicans running for the senate, running for the house did not do as poorly as some people predicted because President Trump theoretically could run again for his partys nomination, for the presidency in four years. Because he is likely to be an active voice on social media or if he starts his own conservative network. I think a lot of republicans are wary about being the ones that tell the president he needs to acknowledge the results of the election. Haidi White House Reporter justin sink there. We will have more on the impact of the u. S. Election results later. An exclusive interview with costco senior vp for asia. Both of those later on bloomberg markets. Coming up next, we discussed softbanks recovery efforts. Premier thinks the stock may be right for shortening. This is bloomberg. Haidi we are counting down to the market open in tokyo and seoul this morning. Nikkei futures potentially closing above 25,000. This will be the first time at that level in 30 years. This has been a market continuing to trade at those highs as we see increased Risk Appetite coming through from the overnight nus session. The 90 efficacy threshold for the pfizer and biontech vaccine causing that ripple of onset. We know towards the latter part of the session, we pared back a lot of those gains on concern that a more effective and widespread deployment of vaccine would mean less need for a big stimulus package. The market by and large had been counting on. Trading pretty steady at the moment. Broad dollar weakness continuing to play out. 105 that the moment for dollaryen. We could be getting to 100 if this dollar weakness theme continues to play out. Certainly, that retreat setting up a little bit of a hurdle or curtailing of the optimism, exuberance and could otherwise see in the Asian Session. We are watching for japan numbers as well as china inflation and thirdquarter gdp. The agenda today. Lets get a quick check of the latest business flash headlines. Southwest airlines being in advanced talks with boeing to acquire up to 30 737 max planes who lost their original buyers. It would replace a similar number of the 249 planes that the carrier has on order. Southwest is the largest 737 operator but not looking to boost its fleet with aviation collapsing in the coronavirus. China on track to increase crude imports this year by 10 according to a senior official at the China Petrochemical corp. The Vice President says imports are likely to reach 550 Million Metric Tons this year as the mainland drags demand for global oil. Chinas crude imports are up 10 this year through october. The softbank turnaround seems to be on track. Recordrted a profit in its vision fund business. Lets bring in amir, Senior Market strategist. Thinkly a bad time to about the recovery on the back of a broad tech rally, given we have seen that sector rotation overnight. No doubt that will continue more if the market feels it can keep its pricing in without the participation of tech, but one of the implications for softbank . Softbank, we have been saying, softbank is more of a punt on Technology Names and that is what they have been doing. 20 billion in Technology Names like amazon and tsmc and nvidias of the world. Obviously, john is the one calling the shots and hes just increase that bet. The asset sales have been going fairly smoothly. They have increased their sales to about 50 billion since march. The Asset Sale Program seems to be going fine, but the investments taking place are back onto momentum names. As long as the momentum names continue, as you pointed out, that didnt work out that way. Continues andt softbank will be bailed out from the market. Even anook at it from outsider, you will think softbank is just an extension of the technology rally. As long as the technology rally continues, they should be ok. Once that music stops, then there is no point of investing in softbank. Analysts are fairly bullish but we are not convinced. Haidi rogight. So, it sounds like you are saying if you have a position in softbank, there is not much point going overweight, underweight, taking a strong position either way. You take a look at the balance, you take a look at softbank as a play on the components of its tech names, they are skewed more towards the downside . Amir absolutely. What you would do with shares of softbank, you would short softbank against the portfolio Technology Names you might be holding as a hedge. You have these positions on technologies from a bottomup perspective rather than from a momentum point of view. You want to protect your downside and softbank has always been a good instrument to protect downside should Technology Stocks stop outperforming or start going down. We know the valuations are fairly high. If the reflationary trade goes back on because of any vaccine hopes or the possibility of the infection rate start to curve, yeah, softbank is definitely not a stock to be in. Is there another rabbit Masayoshi Son can pull out of his hat that can keep him on top . Keep his investments going . Amir he just continues to double down on technology so i am not quite sure how he is going to surprise me. The size of the bets are a surprise. Hes put another 20 billion in these names, right at the top of the cycle. We might not be at the peak today but we are very close to the peak. Baffled how he could surprise us. Obviously, he had more asset sales to go if the chinese regulators allow arm to be sold to nvidia peter another 40 billion on top of the 50 billion dealers that is already sold in terms of assets. Stock buybacks have been the order of the day for softbank which dismisses the whole idea that softbank is going to be taken private because you wouldnt sell all these assets and buy back shares having seen share price double up and you wouldnt take a private that is just silly. Speculation is just so i am trying to keep its share price up when they are not doing the buyback made their the thing about the buybacks the nobody mentions is we are not really seeing any of the shares being retired. And at some point they could be used as collateral against loans. We are even convinced about the buyback to be fair, because they are not being retired. Kathleen if this whole stockmarket global weight continues to crest, including in Masayoshi Sonee will be carried higher with it, at least for a while . Amir not in the markets like today, no. I think softbank will be sold off in days when youve got the value names and reflationary names, going back to work kind of names come back. Away from tech. I dont think softbank will participate. E market becomes brim or people start concentrating their bets on technology and staying at home stocks, sure, softbank should outperform. Yeah, we would be more willing sellers of this kind of market we have seen overnight continues. Investment, as a hedge to short against upper folio of Technology Stocks you might hold. Kathleen do you have any more expectations for what vision fund 2 might look like . Amir yeah, they are smaller bets, obviously. A lot of bench capital or private equity funds, depending on how you look at it because it changes day by day exactly what the strategy is. It looks like shes taking a smaller bet for the vision fund. For its own investments, taking a bigger bet. Thatot quite convinced lessons of the last year or so someviously, theres been fortunate turnaround situations with the likes of uber, which is obviously a reflationary trade. If the economy does turnaround, uber is definitely one of those names that can have a big rally. Juste other hand, hes putting more and more money into the likes of amazon and zoom and nvidia and tsmc. These stocks have been the best performing stocks of the last few years. Sons investments as being particularly savvy. He thinks momentum will continue. If you believe that, yeah, you will hold onto softbank. Theres no particular reason why you would go out of your way to overweight softbank shares which have been held up by its own share buybacks. Haidi amir, always great having you with us. Senior Market Strategist at asymmetric advisors. A 23yearold student is joining the Australian Government over claims it is leaving investors over Climate Risks. We will have the latest on the Climate Policy and litigation next. This is bloomberg. Haidi we are getting the numbers when it comes to Japan Current balance for the month. We are seeing the september numbers coming through. Balance of payments coming in at 2025, just over that in ¥1 billion. That is the adjusted number at 1790 ¥3. 7 billion. That is probably a bita little bit narrower than markets have been expecting. We so i drop in the ease of japanese exports. The expectations were for 1700 ¥54 billion. We did get a smidge above that. Looking ahead, Bloomberg Economics expecting that to stay around the september level coming into the rest of the year, both exports and imports expected to narrow the contraction. We are looking at these renewed lockdowns taking place in key export markets in europe that could potentially slow the pace of the japanese recovery. The Australian Government will defend a Class Action Lawsuit today. It is claiming the lawsuit is fleeting investors by not declaring Climate Risks in its bonds. Paul allen has the story. This comes as there are concerns about where australia is less on the climate war. What is the basis of this lawsuit and how serious could it get . Paul it is a curious lawsuit that was brought by a 23yearold law student, kathleen odonnell. She is having a declaration that australia did not declare exposure. They said it might make it difficult for australia to pay off that debt and she wants an injunction, a promotion of Exchange Traded government bonds until compliance. You can understand why she would feel this way and others as well. We had unprecedented bushfires last summer in australia. That was the sobering reminder of the risk posed to australia by climate change. As to how serious it is, even if it is successful, the best that will happen is a disclosure and perspectives for those bonds. The bonds are still aaa rated. It is up to investors to decide whether they want to buy them. Some of them dont. Have queen land debt anymore because of this reason. Kathleen a change in National Government policy is Climate Action being led more and more by individual states . Paul yeah, that does seem to be the case. While federal government doesnt have this zero emissions target by 2050 that many of the trading partners do, of all australias state and territories have zero targets. Most of the governments have not outline how they will get there. Some of the states, Western Australia and queensland, carbons emissions continue to rise despite the target. That is another of Scott Morrisons arguments against doing that. You need a credible plan to get there as well. Some states do have that credible plan. New south wales plans to retire coalfired five stations in the next 15 years. They will be replaced by renewables in 2032. Becametralian territory powered by renewable energy. Kathleen paul allen, thank you for that report. Chancellor made Green Innovation the centerpiece of his vision as he looks to overhaul the sector. Spoke to bloomberg in an exclusive interview. We want to remain one of the most complacent to business anywhere in the world. We want to be on the leading edge of technological adoption. Importantly, we want to be a leader in green finance. Today, we will be issuing a green sovereignty bond for the first Time Next Year and having the first major economy to mandate the climate disclosures across the economy by 2025. Taken together, it cements our position and wanting to be a Global Leader in these issues. Lets talk a little bit about whats happening in the yield markets. We are going to see green gilts being issued. Gilts differllow from a green gilt . Do you think it should have a higher premium . How will investors ensure the promises that are made as part of those green gilts are actually delivered upon . We have been watching this market for a while to make sure it was the right thing to do. I think what we have been convinced of looking at the market experiences a couple of things. Make sure thecan proceeds go to the areas and the types of things people would expect them to. An existing framework we could use to deploy as other countries have. To the point of pricing, what is clear looking at the market is bringingn gilts do in a new class of investors. We are seeing repeated issuances of bonds which trade to existing gilt partly driven by different investors coming in. That is something we want to tap into. Chancelloru. K. Speaking to guy johnson. Numbers are due in just a few hours time. We are joined to preview the print. Japanese stocks are at multidecade highs. Continuing to feed optimism into the Asian Session. We will have an outlook. The market openings are almost upon us as we continue to see exuberance when it comes to this part of the Asian Session. Asking the question to our guests, risk assets looks to perform best on these vaccine hopes . Much more to come. This is bloomberg. Welcome to daybreak asia, from bloombergs World Headquarters in new york. I am kathleen hays. Haidi i am haidi stroudwatts in sydney. Our top stories this hour, asian markets looking primed for gains after a new study promises the most the most promising covert results yet. Welcomes the vaccine report but warns the u. S. Faces a dark winter. Mitch mcconnell says President Trumps right to contest the vote count. Chinas october Inflation Numbers, we will take a look at how beijing is using quarantine rules to keep its citizens spending at home. Lets take a look at Market Action. Going back to sophie to see if this vaccine optimism continues to spread around the world. Sophie. Sophie we are bid in asia with cash being put to work even as we have caution about the timeline for a vaccine rollout by over in japan, we are seeing the nikkei 225 extending for a sixth straight day, crossing the 25,000 level for the First Time Since 1991. We are looking to see if the topix can close the gap. Above 105e yen back as we saw a selloff in havens overnight and switching off the board to check in on the open in south korea, we have the kospi slightly higher, up. 2 this morning, extending gains for a seventh straight day potentially while the korean won is marginally lower here but still trading around january 2019 highs. We are watching for the Monthly Budget report from the finance ministry as well as the boks analysis of the impact of covid on prices and on the earnings front, they are very much in focus on the back of this vaccine news. Switching out the board, stocks are rising while bonds are falling as yield curve bears steepen, rising as much as 13 basis points in the session. A have the asx 200 set for fourth day of gains as we have banks and services stocks. Aining ground tech and gold miners are under pressure. Qantas jumping the most since march, adding more than 13 . Over in wellington, the nzx 50 adding fresh alltime highs. Checking a nonus assets this morning, the dollar treading water as the aussie and kiwi are under pressure, losing some traction and u. S. Futures edging higher including nasdaq e minis after the benchmark was jagged lower amid a rotation out of big tech. A lot of focus in the treasury space here. Opening study after we saw yields reset higher. Encz marc rates jumping benchmark rates jumping the most since march. Haidi a Portfolio Manager at china fica investments tribeca Investment Partners joins us. I am wondering how much value in terms of a rotation within a artfolio do you find vaccine that can be quickly deployed at this point . It is good to be here. Very balanceda portfolio so we like the structural growth story. We have been talking about this for pretty much the last eight months about how much value there is presented in some of the quality names. Look past thenot election, could not look past the outcome for the vaccine. We knew it would be just a matter of time before this takes place. We have seen it in a aggressive manner. Particularly quality assets. A long way to go for those companies so certainly in the next 12 months, these businesses will deliver more return. More Expensive Companies have benefited from the covid related shutdowns. Haidi we saw that reflationary trade play out overnight in the u. S. Have youthose names seen in asia, particularly with the anticipation that some of these would not play out in a dramatic way given asian economies are so much further ahead when it comes to reopening anyway . Jun bei absolutely. This is actually quite interesting because when he talked about reopening, we look at australia and asia pac. This seem has been this scene has been playing out. The flavor of the u. S. Market will drive some of the interests into those sectors so i expect those to continue to be very strong and especially some of the companies that are listed in asia can go global as well. A vaccine certainly helps with the confidence. Thosedful about chasing stocks given todays aggressive move. The recovery will be very smooth and the availability of the vaccine will take time. We expect this rotation to last perhaps a few weeks. You will have reality setting and so it is all about a balanced approach to the portfolio. Kathleen we had a guest on earlier who was talking about the tech fade trade fading. As thels can now move vaccine draws closer, no matter when it comes. It is clearly going to be here, so looking at that, could you give a little more specific guidance on if you cant talk individual companies, which industries and sectors are the most beaten up right now but could and if it from this benefit from this . Jun bei the first thing that comes to mind are the airports. The Property Trust. The Property Trust has been one of the most lagging sectors. One that has been meaningfully impacted by this covid related disruption. That is the sector you expect to outperform reasonably well, infrastructure. Toll roads and the like. They will do very well. Is dueng about tech still be mindful. I dont expect inflation to come through in the next two years so on that basis, i dont think the cyclicals are going to really have the yield improving is well so i think that supported. It will support the growth names. They should be a smaller part of the portfolio given this modest return opportunity to be made in the reopening trade such as the Property Trust at airports and the like. Kathleen when you look at regions, countries, where do you thethe biggest ripest gains to be invested in . Jun bei with a return to growth, you know, once the path is clear, certainly, you are going to see equities flowing into emerging markets although emergingmarket have managed the covid destruction reasonably well so you will certainly see increased demands for u. S. Dollar weakness and we are going of thethe outperformance emerging regions. From tribecai liu Investment Partners. Appreciate your time. Lets take a look at softbank, the improving results, this after we did see, and get some where when it comes toward the vision to fund and what it looks like, how her previous guest saying that really, softbanks on a pond on what happens to be tech and we know there was downside pressures. We are seeing downside of. 9 , over 1 lower after that earnings report. Lets get to Karina Mitchell with the first word headlines this hour in new york. Karina very good morning to you. The pandemic is uppermost in joe bidens mind. He is repeating his warning of a dark winter ahead as the coronavirus numbers continue to search. He is finalizing his response even as a senior republican on capitol hill says President Trump is within his rights to challenge the Election Results. Mitch mcconnell says possible voting irregularities must investigated and the president has no obligation to accept media claims that joe biden won. We have the system in place to consider concerns and President Trump is 100 within his right to look into allegations of irregularities and weigh his legal options. Karina the u. S. Is putting sanctions on more people in hong kong in a continuing response to chinas increasing control of the city. Washington suspended its expedition treaty with hong kong and ended reciprocal tax treatment. It is sanctioning senior chinese officials who oversee carrie lam. The Trump Administration said hong kong is just another chinese city. The European Union will impose 4 billion of tariffs on American Goods later tuesday in the latest escalation of their 16 year dispute over state aid to playmakers. It says it prefers a negotiated settlement and withdrawn new duties if the u. S. Dropped the tariffs imposed on e. U. Goods last year. Theres a wider range of u. S. Products. 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. Jun bei kathleen thank you so very much. We want to look at a headlines crossing now that the faa is in the final stages of its boeing 737 max review. Waiters reporting that the grounding of the 737 max could come as soon as november 18 so it looks like potentially its just around the corner. You can see boeing shares up 1. 7 now. Still ahead, chinas october Inflation Numbers are due in just over one hours time. Standard charters representative joins us. Pfizer and biontech report what fauci is calling extraordinary results. All the details ahead. That story moving the markets mightily, not just in the u. S. , but some of that optimism about a virus that could this endemic to rest and allow a lot of countries around the world to lighten their restrictions, to end lockdowns, and all the kinds of things stock investors are so hungry to hear right now. The chin. Ng it on details ahead. This is bloomberg. Kathleen pfizer and brown tech are reporting positive results from the covid19 vaccine trials, a major breakthrough in a fight to contain the worst outbreak and as in a century. The antibody therapy has been granted emergency fda clearance. Lets bring in michelle cortez. I have to go right to the eli lilly news. We need vaccines, but right now, people are still getting the virus and full distribution of a vaccine will take a long time so any kind of effective treatment seems to me right up there with the latest news on the vaccine itself. What do you know about this and how important will it be . Right. E you are exactly its really critically important that this antibody therapy becomes available for people in the hospital fighting coronavirus infections, the group of people who will be benefiting from this. It is a treatment that basically is a manmade version of the antibodies that our body naturally produces when it fights an infection and it is designed to specifically fight this coronavirus. Showing some good data it is effective, it can reduce hospitalizations, help people survive the virus. It is a medicine similar to the one that regeneron is working on, the one that President Trump received, so great news. The people who are most in need of having some kind of a treatment might have access to this eli lilly antibody and vaccine which will prevent anyone from eating that antibody. Surge on markets optimism, we are hearing from the president elect that we need to potentially brace for a dark winter ahead as we get what is day four of over 100,000 new cases in the u. S. Now. Michelle there is definitely going to be a dark winter happening here. Goingw the vaccine is not to be readily available and even when it does become available, its a two shot vaccine and there only 50 million doses so that is 25 billion people who will be able to receive it. We will have to get it out to all the states across the country. It has to be shipped at 79 degrees fahrenheit. That will be a challenge. Your body has to respond to it. We are really not going to see a big benefit from this vaccine until later in the winter and possibly even as early as spring, so its going to be tough. Hopefully, this gives us some hope. This is why we socially distance. We will have to get to herd immunity. You will either get there by getting the virus or getting the vaccine. There appears to be a vaccine that is on the cusp of being available so stay home, wear your mask and wait until you can get this vaccine to protect yourself. Haidi wait it out. Michelle cortez with the very latest. We spoke with the New York Stock Exchange president , Stacey Cunningham, who weighed in on the Market Reaction to joe bidens win and the good news on the vaccine front. Stacey 2020 has been short of those surprises. We have had lots of those today it and we will continue to see the Election Results come in and that is something we are seeing the market react to this morning, prior to the news about the vaccine, which has contributed to the major market moves to the upside. There are still some unknowns as we work through the details but i think the big takeaway was the market was reacting to the view that the election was resolved and that uncertainty and being able to move on is positive with respect to Market Reactions and having that clarity so that has been well received by the market so far. The big story around our Election Year was the voter turnout, to see the number of people that voted in this its a good how story in the u. S. What during the pandemic have you found yourself doing as a president that you would not have done maybe in the past . What we have been doing is we have been focusing on how to strengthen our community, give them the tools they need to fight this unprecedented environment, so one of the things i would not have expected was holding a series of Conference Calls with our ceos, with people like former fda who is providing information about how to battle a pandemic and keep employees safe and with that information, it is what has been most useful for many ceos as they are figuring out what are the right steps to keep their employees in a safe environment . So many of them are asking the same questions. How are you handling the todemic is a common question hear. Thinking about those types of things, how they think about their work versus Going Forward not just during the pandemic cycle but just longterm. Aboutear showed us a lot digital transformation, not just the digitization of processes that exist or how people are transforming their businesses with the importance they had to put on remote work and all of the different elements that go into their daytoday so many of them are taking that information and considering how does this redefine where they are going . With crisis, there is opportunity. What do we learn from this and how do we want to continue to evolve . We have opportunities to learn from everything that occurs, whether or not it was welcome. Lets talk about remote work for a second. You are one of the First Companies to bring people back to work and now youre sitting here today on a day where joe biden has started to create a task force around this pandemic. What would you like to see out of a National Response for covid19 as we get through what he calls this dark winter . Its really important to recognize we have learned a lot about the virus over the past few months and we have learned yes,o safely operate so, there is real value in limiting the number of people we bring together but we can reduce the risk of transmission of the virus by the things we have learned like wearing a mask so we have reopened the New York Stock ExchangeTrading Floor in may. People are wearing masks, social distancing. We put a lot of precautions in place to reduce the risk in the environment and we have not had any cases of transmission we have seen on the Trading Floor and thats because we believe we have taken these precautions and we had cases we have screened that were attempting to come into the building so by using those measures, we have been able to reduce that risk. Not how we keep the economy open in a way we were reducing risk. Its important we recognize that some businesses are going to struggle if we cannot reopen the economy. There are ways to do it safely so lets use what we have learned and studied but find a way to focus our energy on the businesses that are most impacted. People who are operating remotely, lets let them stay remote for a while. We need to use common sense and riskreward evaluations as we think about which parts of the economy will we want to prioritize, whether it getting children whether it be getting children back to school or businesses withstanding longterm downtime. Kathleen now is Stacey Cunningham telling bloomberg about the steps they are taking to wisely reopen the workplace. We are going to have more insight into the impact of the u. S. Election, later. Do not miss our exclusive interviews with senior Vice President for asia, richard chang, and a managing director. Thats coming up later on daybreak asia. Haidi take a look at some of thee asia stayathome pandemic darling stocks that have done so well out of this year, seeing the same date as their u. S. Counterparts, falling in the asia session. By 4. 6 and we are taking a look at other gaming and app names. Pay,by 4 as well as after off by 8 at this point. Overnight, we saw that reflation trade really favors some of the airlines,tocks, carnival cruises, and big tech taking a hit with that rotation. Coming up next, Masayoshi Son is making his case for softbanks turnaround, speaking of another stock that is lower today. The vision fund supporting that case. We have the details ahead. This is bloomberg. Haidi softbank is falling after posting fullyear results which seemed to show some turnaround. They posted record profit as a sign that startups are paying off amid the broad rally in tech stocks. On the line is our Asia Technology reporter. The question is, have they made a complete uturn from last years losses and is what we are seeing in the stock reaction today more of a reflection of what we saw in the text selloff overnight text selloff overnight tech selloff overnight . Pavel it is certainly not a reaction to the earnings, which were very positive i would be much any standard. Specifically the stand out was the vision fund with the 7. 6 billion profit in just the three months. This is by far the best three months for them. Of course, a large part of it has to do with just Public Markets soaring in the United States, Technology Shares including uber, slacks, rising in the quarter. In the quarter. The majority of the profit in the quarter came from a single ipo of a chinese real estate company. On just thatgain one investment so things are looking at, but you know, theres only been two quarters and the markets are looking wild so it is worth watching. Kathleen they have also revealed details of their controversial options trading program. Why is it controversial and what do we know as the latest . In august, what we saw that they created a new management arm, one third personally and we will invest in u. S. Tech shares as well as derivatives. At that time, people were taken aback that softbank would invest in amazon, facebook. People did not understand the scale of the derivative program which did not come out until later that month. It looks like they have 2. 7 billion, which is not the way people thought they were. Kathleen Asia Technology el, thank you for joining us. Perus president ousted after losing an impeachment vote. Office whend out of his congress impeached him today over corruption allegations. Legislators voting 10519 in favor of moving the president. It news. Big big news. You can see the currency looking weaker. Up next, the u. S. Imposing sanctions on china. This is bloomberg. Are you frustrated with your weight and health . Its time for aerotrainer, a more effective total body fitness solution. announcer aerotrainers ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. Do the aerotrainer super crunch. The prestretch works your abs even harder, engaging the entire core. Then its the back extension, super rock, and lower back traction stretch to take the pressure off your spine and stretch muscles. Planks are the ultimate total body exercise. Build your upper body with pushups. Work your lower body with the aerosquat. The aerotrainer is tested to support over 500 pounds. It inflates and deflates in less than 30 seconds using the electric pump. Head to aerotrainer. Com now. Now its your turn to lose weight, look great, and be healthy. Get off the floor and get on the aerotrainer. Go to aerotrainer. Com, thats aerotrainer. Com. Kathleen haidi lets take a look at the state of trade when it comes to the Asian Session. On the back of a pretty whipsaw u. S. Session, we have a positive vaccine with a 90 efficacy rate for pfizer and biotech vaccine prospects. And concerns at a quicker and more effective deployment of vaccine would mean a smaller than expected stimulus package from the u. S. Government. This is how we are setting up in this part of the world. The aussie dollar are trading a little bit lower there with a broadbased dollar weakness we can like it will continue. At the Business Confidence index for october. Matt has risen to five from a contraction of four. Boost toeing a Business Sentiment more broadly. We have asian markets. Nikkei 225 upside of 1 over that key 25,000 mark, trading at highs we have not seen since 1991. The kospi, a bit of an outlier. 2 lower. We are seeing heavily weighted tech stocks dragging down the overall index. In australia, we are seeing upside of 1. 3 with markets in this part of the World Trading at the highest in about eight months and taking a look at some of these more modest gains in new zealand, australia and new zealand, two of those markets veering into overbought territory. Concern from traders about overheating. Take a look at airlines box. These were clearly part of that opening up reflationary trade we saw overnight. Airlines and carnival cruises, the likes of cruise line is wing particularly well in the u. S. Airlines jumping the most at one point since 2008. In this part of the world in new zealand, seeing upside of. 8 . Qantas seeing a jump of over 10 as we have the border between New South Wales and victoria opening on november 23 so we will see a resumption of that key melbourne, sydney domestic root. Seeing a jump a day after we saw declines in that dock following partiales, restructuring to raise funds. Lets get to Karina Mitchell with the first word headlines. Karina President Trump just fired his defense secretary via tweet. Mark espers relationship with the president soured after he resisted white house pressure to stopctive duty forces to popular protests. His departure may indicate a post election in other news, the yucaipa prime minister, boris johnson, is bowing to know ahead with potentially illegal brexit legislation despite the house of lords. The Upper Chamber voted to reject the lords. It prevents them from having the final say. Brexit talks resumed in london. As elected joe biden has said harm transatlantic trade relations. Exports from taiwan rose at their fastest since february, defying concern that u. S. Sanctions on huawei and other chinese tech firms would hurt trade. Overseas shipments rose more than 11 in october from a year ago to a record monthly high of 32 billion u. S. Dollars. Imports fell by 1 , leaving a trade surplus that widened to 7. 5 billion, also a record. Myanmars ruling party is claiming victory in the countrys second post military election, saying it has won enough to retain power. The National League for democracy is on course to claim 290 seats of the national assembly. She retained her seat by a landslide but has been resized for failing to deliver in the previous government. 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. Kathleen. Kathleen thank you very much. The United States is imposing new sanctions in its continuing response to chinas crackdown of dissent in hong kong. They had to suspended the extradition treaty with the city and sanctioned senior officials including chief executive carrie lam. Our chief north asia correspondent, steve engle, is in hong kong. When we look at this transition of power in the u. S. , Vice President biden was fairly. Riendly to china over the years, he seems to have followed President Trumps lead in becoming tough on china. How is it playing out with hong kong . Stephen president elect biden has been fairly tough on the chinese leadership with regard asa record on human rights well as outspoken against what happened in hong kong with the imposition of the National Security lot. It has yet to be seen what a Biden Administration, if it does the to fruition, given uncertainty in the United States. Hits uncertain what we are going to get from the Biden Administration it is uncertain what we are going to get from the Biden Administration. Any continuity is unclear. One thing we do know is the Trump Administration is still keeping beijings feet to the fire on trade and on hong kong and on china. Though we had a Treasury Department statement adding four more chinese officials to its specifically designated nationals list but did not give further description. The four were not named. Earlier, donald trump started unwinding the favorable trading status that the United States bestowed on hong kong after the imposition of the National Security law. They have suspended the exhibition treaty with hong kong. They ended reciprocal tax treatment with shipping with hong kong. They sanctioned senior officials here and in china including the chief executive, carrie lam. China has not taken kindly to these what they call wrong moves by the trump at maceration. By thee hong kong Trump Administration. Even the Hong Kong Government strongly objects and deplores the Trump Administrations steps. Is all this a moot point if there is going to be a change on january 20 in the white house . Joe biden has been tough on china rhetorically in the past, but what is interesting to me is so far, and however many days it has been, 50 plus hours, a couple of days since joe biden was designated the president elect, the response from beijing has been fairly muted. There has been no official congratulatory message or call or anything from xi jinping to joe biden. Even the ministry of Foreign Affairs yesterday sidestepped questions about the trade deal and about continuing policies of the Trump Administration and a potential Biden Administration. Are we hearing about opposition lawmakers in hong kong potentially preparing to resign en masse . Is ann yes, well, this interesting development. Yesterday, got together and said if reports are true that the National Peoples congress in beijing standing committee, as it begins its two day meeting in beijing today, there have been reports that this body individualfour lawmakers in hong kong ineligible or disqualifying them for the Legislative Council. They have been singled out, reportedly, for their disruptive behavior, alleged disruptive behavior, filibustering, and potential participation in the protest movement. So that follows as well to opposition lawmakers who already quit in september to protest the election delay. Keep in mind, elections were delayed by year carrie lam at the blessing of beijing, so if you take those two out and you take another four out, that 16 Legislative Council members that leaves at 16 Legislative Council members out of the 70 seats in that body. They could all be quitting in the matter of a couple days if those four artist qualified. Asia chief north correspondent Stephen Engle with the latest in hong kong. Another titfortat war in the u. S. The e. U. Will impose duties on 4 billion worth of american aods today because of longrunning spat over boeing and airbus. The trade commissioner told bloomberg that the decision to trigger tariffs now has nothing to do with the u. S. Election. Decision to do tariffs, in boeings case, is not linked to the u. S. Elections. Its linked to the fact that the wto has given us the award of 4 billion in linked with our internal procedures, which are concluded today with discussions in the Foreign Affairs council, trade ministerial meeting. Haspoint is that the u. S. Already for a year been imposing the tariffs on the e. U. Concerning the airbus case. There has been some delay in wto case in the cases of boeing. Only one year later. And in any case, we have indicated to the u. S. Throughout this year and also now that our preference would be a negotiated settlement so we are ready to drop our tariffs the moment the u. S. Is ready to drop bears. S. Ther, drop their the theory is that President Biden is going to be much more multilateral, take a much more work with europe approach. Some even say a potentially softest dance in some areas. Softernot just wait . Stance in some areas. Why not just wait . Germany was going to wait and see rather than act now. Emphasize today, publicly by the german presidency, that actually, there was a broad support of e. U. Member states to moving ahead with tariffs. In any case, it will take several months until early next year when the joe Biden Administration will come into office. As i said, we are open for negotiating a solution and open to drop our tariffs as soon as the u. S. Is ready to drop theirs. Right, we know that this is a time of transition. So i do wonder, and i guess this is the question, when with the last time you had any communication with the Trump Administration . Intensee in very contact with the current administration. Myself, i am in contact with ambassador lighthizer, and we will continue to work on this issue also in the coming months, and we will continue to in the area of civil aviation, and hopefully, to the extent possible also to resolve that. Right, but just to make it clear, you are still on the phone with Trump Administration . Exactly. The Trump Administration is in office for several more months. Trump did say he was ready to if the tariffs went into effect. Do you fear it will go out with a bang with more tariffs in europe . It must be underlined that from the e. U. Side, we are by no means escalating. To us bymenting the wto so we are doing the same that the u. S. Did already a year ago. Rates andn terms of composition of our tariffs, we are basically mirroring what the u. S. Is doing, so also we are avoiding any escalation. Was the e. U. Trade commissioner. Next, here on daybreak asia, inlation is expected to china last month. We preview the numbers due later with standard chartered. This is bloomberg. Kathleen china is to report inflation data in the next hour, which are expected to shed light on the strength of the economical coverage. Joining us now is the chief Greater China and north asia economist at standard chartered. A lot of focus on these numbers. Any numbers of china out now because the economy is in recovery. In terms of the inflation data, how are we supposed to view them . They are both expected to remain on the weaker side at a point in history when your economy is strong and you would be happy you dont want it to strong. Is this a sign that maybe demand just has not revved up enough yet . I would say if we just look at the single month data, we may see a continuation of the cpi inflation. We have dropped year on year. From 1. 7 , below 1 , in september. Just earlier this year, in january. S 5. 4 that is a major disinflation. That may reflect the weakness of the economy early this year, but i think the most important factor is food price. If we look at the driver in october, for example, pork price they have dropped by 10 month on month, so that is i think the single biggest driver. Of course, if we look at inflation, its subdued but thats mainly because the recovery of supply side of the economy appears to be faster than the demand side. We expect when the demand side says to pick up, which we are forecasting a ketchup of demand in the next few months, inflation may start to show an upper trend. This year is still quite sluggish. It is certainly a worldwide trend. In terms of chinas recovery, a price recovery by next year, china has seemed to deal with the pandemic fairly well. The rest of the world has been weakened by it. If there is a vaccine coming that could be distributed in 2021, is that another good sign for chinas recovery because it could mean europe, in particular, could start buying more of chinas exports . In general, i would see the availability as good news. China will also benefit. China benefited because of the supply chain which recovered earlier than the rest of the more, so its getting export orders even without the recovery from the rest of the world. A vaccine, the Global Economy will do better. The growth difference between so that will be better, seems to be more sustainable of an improvement of chinas external demand. Kathleen haidi in fact, things are going so well in china that the pboc is probably one of the only Central Banks in the world that are talking about an exit from expansionary support of Monetary Policy. What is that exit and the winding down of stimulus and expansionary policy what does it look like and what are the potential risks in going to early . Too early . Ding we need to look at the Economic Growth momentum. Up until now, the recovery appears still on track. Seen thewe may have interest part in the pound. Him the next couple of months, we may see the Service Sector catching up with the manufacturing. The retail sales may perform quite well. On the other hand, as we forecast gdp growth in the Fourth Quarter at 5. 5 , which is seee close to what the pboc as potential growth, policymakers already start to express intention to exit policies, including the moratorium on interest and principal payments. A tolerance of nonperforming loans and they also plan to bring the money growth in credit growth closer to the nominal gdp growth. Also see awe could scale back of chinas fiscal deficit, so all those factors, as you rightly pointed out, need to be handled very carefully to avoid a socalled fiscal cliff net could lead to faster than that could lead to faster than expected economic downturn. I think that since the of theties are aware risk based on the recent conference of the pboc, i would expect a gradual exit from the expansionary policy adopted this year. ,aidi all right, ding shuang economist at standard chartered, joining us with his views going into the inflation data coming up in the next hour. Plenty more analysis ahead on those numbers. Our china economist will be on bloomberg markets, the china open, to break down those numbers. We have breaking news when it comes to Brazils Health agency, halting Clinical Trials on chinas corona vaccine Coronavirus Vaccine after reporting a serious adverse event that happened at the end of october. The study was interrupted in accordance with regulations while they take a look at the risk reward of continuing that study. No more volunteers can receive the shot. It has been rolled out over parts of china, sometimes in an unofficial way. We have private hospitals providing them as well as state owned companies. Sino farm giving that shot to people despite it still being in Clinical Trials of the third phase. You are watching daybreak asia. We will be back after a short rate with lots more to come. This is bloomberg. Kathleen we are getting right to Sophie Kamaruddin in hong kong. Im not a big movers in this Asian Session so far and sophie will get us all caught up. Sophie the narrative at work is sector rotation. The tech heavy kospi, we are seeing some fluctuations. It fell by more than 1 with internet and gaming stocks sliding in seoul. You have a battery maker getting caught up in the downturn. The stock had rallied on covid related read energy bet an bets. Turning to japan, the tech startup gauge, the index after dropping by the daily limit. The topix is playing catchup, back above 1700 for the First Time Since february as banks rise. The nikkei crossing 25,000 for the First Time Since 1991. The thing the board, tourism related docs dumping in to stocks jumping. Domestic retailers rising as much as 19 . That is the biggest gain on record. Online retailers like rocket man zozoo so rakutan and are losing. Nintendo falling the most since february 2019. Australia payments provider astro pay dropping the most since march. Airline stocks are soaring including a company in seoul. It is also set to deliver earnings this tuesday. With Sophie Kamaruddin some of the big movers in the session. Lets get a quick check of the latest business flash headlines. Galaxy entertainment will be a stop to watch in the next hour after reporting sharply declining earnings. The company says gaming revenue fell 93 in the Third Quarter with down 95 . Alex he says overall revenue came in at 1. 5 billion hong kong dollars. To be in talksd to sell boston dynamics to hyundai. That would mark another twist in the drama. It was spun out of m. I. T. In the 1990s and was independent until being bought by google in 2013. As producings seen machines that are technologically advanced but unprofitable. Heavily indebted chinese developer evergrande scrapped plans for a backdoor ipo, to avoid a wave of looming repayments. It was expected the listing application would fail. It mys under scales more markets analysis with franklin templeton, head of mobile index portfolio management. He will be joining us. Plus the executive insights into the u. S. Election. Costcos senior vp for asia, richard chang, is live from taipei. That is it for daybreak asia. Our market coverage does continue. We look ahead to the start of trading in hong kong, shanghai, and shenzhen. Markets for bloomberg the china open. 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. It is not 00 a. M. In beijing and shanghai. I am tom mackenzie. I am david english. We are counting down to the beginning of trade in hong kong. Lets get you your top stories. Equity markets across the region extending the global rally after a new study delivering the promising big scene results. The nikkei to do five ab