Transcripts For BLOOMBERG Bloomberg Markets Asia 20240711

Is the first air travel bubble of its kind. There we go. We should be watching airline stuff as well but a lot of that thisready priced in after bubble was announced a few weeks ago. A have a look at the tech index here. Alibaba and tencent on the market at the moment. They are taking 179 points off the hang seng index itself. That is as we are seeing this rotation out of tech stocks, a global phenomenon at the moment. This will be because of the regulatory challenges we will be facing through some of these online retailers. Juliet . Juliet lets get Market Analysis with patrick, the global asset strategist. Patrick, we are finally getting this news of this travel bubble between singapore and hong kong. This is one thing that investors have been looking for when we start to see Global Travel open up and how that will feed into the energy markets. Lets get to our question of the day. That is when will crude back to these march highs . What is your view . Patrick morning. We are not specializing in energy analysis. I would say this is all part of what we are seeing in the emerging markets. Just asia have a much better control of the very situation. Control,ing it under being able to reopen more quickly as we are seeing in china. Establish these sorts of things. I think that all adds to the emerging markets in particular. Which we have been talking about for quite a while. Lets also talk about what we are seeing in terms of this rotation we have been seeing. We have a chart that has been showing what we are seeing in terms of this growth rotation. Do you think this continues . This is kind of the news we have been waiting for. There are a lot of questions about when we would see this vaccine and how it will be handed out globally. Think you are exactly right. This is the news we have all been waiting for. For months, it has been quite predictable, on the day when we would see the first big virus announcement, we were going to see this sort of rotation. You can talk about it from growth into value. I think that is part of it. Isn more importantly, it rotation into the stoxx that have suffered from the lockdown. The winnersening from here. It is clear we are getting a lot of rotation in the first place. But as you said, the vaccines, not just this one it will take months. Sure, markets are going to press that in well ahead of the actual things happening. We will get a burst of rotation after that. They will expect the pace of rotation to keep going like this. Rotation, weabout also talk about we have a chart to show this. What it does show is we have seen developed markets outperforming late. We see emerging markets coming back in. Have seen that since that marcello that we see. What is behind it . Secondly, does this continue . First of all, you have to bear in mind, the emerging as muchdid not sell off as the emerging market. They had their virus care. From here,at emerging markets are probably the clearest regional winner that you can point to. Again, with an emphasis on asia. If you could think about the development that we are having on the political front, it looks like the potential between the u. S. And china will probably get better from here. The Global Economy recovering into next year with emerging markets. I think these styles are lightening up for emerging markets. That is our clearest condition when you talk about the regional views. Patrick, it is called g, you have you called depreciation on the dollar, that will not be good for u. S. Assets, will it . Patrick it depends on where you sit and how you look at the currency. If you are in big reporter, you probably like a weaker dollar on the margin. From a corporate standpoint, it is arguable if you look over a 10 or 15 year horizon, the u. S. Dollar has been overvalued for many years right now. It is not clear that the u. S. Will continue to outgrow the rest of the world at the same pace as it has. At a decade plus of american exceptionalism. U. S. Equities have performed the rest of the world since the level financial crisis. This is the annual outlook. One of the things we are picking is looking at the next 10 years, we think there is a lot of headwind lining up there. Rishaad one of the biggest risks shortterm, if i was to pick out three the United States, these walls of worry, on top of that, we could have relocked in congress. Of course, there is this drawnout election process. That has been tested by the incumbent. I think youre pointing out a lot of the bigger ones right there. Despite the fact that we have the views on the vaccine right here and now, we have talked about it for a while. I guess one that you did not mention his bond yields. We are seeing u. S. Treasuries in particular. U. S. Every markets have given up a lot of that. We dont think that will happen. Given how much centralbank policies are out there. I dont think risk assets were like that. Rishaad thank you, patrick. That was the global asset strategist. The bubble was announced about nine minutes ago. This is a travel bubble between hong kong and singapore. It will start on the 22nd of november. It will replace covid quarantine with covid19 testing. We have media briefings taking place in both cities. They will be on Singapore Airlines and cathay pacific, there is well. Singapore saying this is the first travel bubble of its kind. There we go. This is over to build up. Indeed, you can tell that sometimes it is better to travel than arrive. There we go. Lets get over to new york and have a look at some of the first word News Headlines and go to karina mitchell. Tiktok is back in the news. The chinese parent is asking a federal Appeals Courts in washington to intervene in the dispute with the Trump Administration. Help on seeking to National Security grounds. The deal now handling hangs in the balance. Meanwhile, china is reported to be moving toward the patriotism test for all hong kong lawmakers as it looks to curb debate on the Legislative Council. The move why the reported by local media would give the Hong Kong Government power to eject members who are not being sufficiently loyal. Opposition lawmakers are threatening to quit. The law could be approved as soon as today. The u. S. Is ramping up tensions with china again with the secretary of state, mike pompeo saying the administration is not finished yet. He used his harshest rhetoric so called chinese leaders him authoritarian and brutish. This is powered by more than 2700 journalists and analysts in more than 120 countries. I am karina mitchell, this is bloomberg. They kept rates on hold, speaking in wellington, saying inflation and employment will remain low target for some time. Will have inflation remaining subdued. They are offering Additional Support and will cut rates if needed. There have been some questions about why this bank Lending Program is not going to come in sooner and they have all been saying to reporters that they will do it as soon as sybil. Given the time needed to limit the new measures. The kiwi rising for a seventh session, holding up march of 2019 highs. As we hear the governor continue to speak to reporters there. Traders are gearing for a negative rate in 2021. We see new zealand bonds slide with the markets reassessing the potential for negative rates. We leave that press conference in wellington. Bloomberg subscribers can continue watching at live go. We hear exclusively from malaysias finance minister. This is all designed to slow down the pandemic. Alibabasg out to headquarters. Stop sharesough to sinking in hong kong. This is bloomberg. Rishaad china is stepping up efforts to rein in some of its most powerful tech companies, a move that is jolting investors and dealing a blow to the countrys richest entrepreneurs. To theas a booming start singles day bonanza. Lets go to the china markets coanchor at alibabas global head quarters. Why is alibaba a target of beijings to crack down we have with antitrust activities in china saying this is a watershed moment. It seems like a significant moment. The reason we are here at the headquarters is for the Shopping Festival but really the flight in the ointment. It is this regulatory shift from the authorities. We saw the regulations published yesterday. Some of the key concerns are around data and the sharing of data between some of these technology giants. Also, the alliances they form which could potentially squeeze out some of their competitors. It is also the platform and the structure that the internet and Technology Companies almost universally used to raise funds from overseas. That structure may become more difficult to implement going forward. More are likely to be regulations, more rules put in place around june of next year around internet Financial Transactions. That is something us to bear in mind. We have a few lines from the officials and the regulators. The insurance banking regulators saying they do have a kenai on potential new risks within the digitization of finance and that they want to ensure that innovations in finance are on the right track. It does seem like a fairly pivotal moment. Chinas authority is relatively handsoff in terms of their oversight. Power of size and the alibaba and tencent, it seems that now, they are focus to a more rigid regulatory environment. Cant wait to see what you are buying us all. Can we expect another record year . Pandemicink the records will go away . Dont worry about that. This is politics for alibaba. Youre looking at 56 billion. 56 billion dollars of sales. It has not even finished. It wraps up tonight. That 56 billion compares to 38 billion for the whole of 20. But they smash those numbers from last year. We are seeing trends around the 5g Technology Innovation changes. People wanted to get their hands on the smart phones also, a shift in terms of the appetite here. Theyre starting to pick up at a rapid pace. That is playing into it as well. Crazy numbers in terms of this. We are seeing half a million transactions per second. It is also a finger on the pulse of china. The economy recovers, yes, at a tepid pace. That suggests that the resilience is there and chinas consumers remain relatively bullish. There are caveats of heavy subsidies and price cuts. Of novembere months and december will be more subdued. That is a question mark for consumers as well. That was Tom Mackenzie at alibabas headquarters. Coming up, our exclusive interview with the malaysian finance minister telling us how malaysia plans to balance its record budget for next year. That interview is next, this is bloomberg. The latest record of 78 billion for a budget may face a tough path in parliament. They are talking about improving social initiatives. We spoke this lucidly to abdulazeez. Is the is important announcement we made the last five years about the budget. We should have to deal with the bubble. An expensiveve budget. Forbidden it. Has this aggressive budget will allow us to fight. We need to have the focus on these sectors of the economy. We are looking for the highest market impact. We need to build on the economy. The other thing i want to talk about quickly is health care. We have been spending a lot of money on the budget. We also have an aggressive budget. An aggressive budget acquires rigorous spending. Are there any plans to issue bonds in the dollaryen market . There are no plans for issuing bonds. That is not some thing that we will see. , we see demand being met. The 2021 budget was announced during a very big week, globally given that the u. S. Elections were in focus due to the potential implications when it comes to trade, Foreign Policy and financial markets. What could abiding presidency mean for d. C. s relationship with malaysia and Southeast Asia as a whole . We look forward to working with joe biden and the government. They are great trading partners. We are optimistic about this. We have not left the pandemic behind us after rising infections in malaysia. What could a potential vaccine develop mean around stimulus for the budget and beyond in malaysia . Markets are doing particularly well. That is a good sign. Obviously, the consumption of gdp growth is dependent largely on the whims of vaccines. We have a very strong recovery. Rishaad that was the malaysian finance minister speaking exquisitely to mike kelly, Sophie Kamaruddin. Look at the reserve bank of new zealand. We are from the governor there. Heard from the governor there. On stimulus plans for the economy. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Is almost 10 30 a. M. Here in singapore where we are getting news of the travel bubble in hong kong. Operate thell travel bubble. Also, Singapore Airlines is saying that they will fly airbus a350s for this travel bubble. This is a travel bubble that will replace quarantine with covid19 testing. We understand there will be several flight a week on Singapore Airlines and cathay pacific. Rising to daily flights from december 7, a maximum of 200 people will be permitted on each flight. Details of the arrangement released nearly a month after the announcement of the arrangement. Lets have a look at what we are seeing in terms of some of the Asset Classes. We have actually seen the Singapore Dollar holding near the twoyear highs. We are hearing that singapore will make its covid test available to anyone next month. The dollar is still strengthening. Putting up those twoyear highs. The topic is getting very close to erasing its 2020 laws. A bit of weakness coming through in china. We had a clampdown on tech. Also, a return of chinas consumers. We will see that retreating again today. The kiwi is holding at its highest level since march of 2019. Were are just hearing from the governor there. They do plan to offer banks cheap loans from december and also they say new zealand will with inflation staying subdued. Get the first word news and go to new york with karina mitchell. We start with u. S. Eltek. Sam republicans are moving to avoid a government shutdown, releasing 12 bills to provide funding. Mitch mcconnell says keeping the government afloat is a priority in the postelection session. Top democrats objected to the proposals. The current stopgap funding plan expires on december 1. Over to europe, the European Union has pleasured you on longterm Spending Plans moving closer to a landmark budget and esteem those accord worth to join does. Policymakers are under pressure to agree to a package of next year. Commission says the plan will add to economic output. Has entered asn legal battle against her pen. Theyre trying to avoid being sent to tokyo. Those Court Filings say the pair could face humor to business in japan. The declaration is the first public intervention in the case. Although he asked if he could hope details. Global news, 24 hours a day on air and on bloombergquint take. Para by 2700 journalists and analysts in more than 120 countries. Than 2700 by or journalists and analysts in more than 120 countries. This is bloomberg. Haad President Biden we are already beginning the transition. E are underway the ability for the it does not matter if they recognize this win. It does not change what we can do. Rishaad in what ways are joe biden moving forward as president elect as President Trump refuses to except the results of what happened on november 3. Click the first way he is moving forward is by saying that he is doing so. Declaring that he is the president elect, not that he wont be deterred by some of these things that are happening in the administration, the current administration. But there are a couple of things that cant happen until the Trump Administration gives the Transition Team some access. President elect biden says he is not receiving the full intelligence briefing that is normally afforded to president elect. He does not have the secure access to do that. Some of these things really cant take place until that machinery kicks into higher gear and we dont know when that will be. We dont know when president ever to exceptif the results of the election. There are some things that the biden team is doing. They are first of all, forming a government waiting. Joe biden is expected to name a chief of staff as early as this week. He plans to make policy and Personnel Announcements as well. He adjusted the need to protect the informal care act. He has gone ahead and put in place a Coronavirus Task force which he says will get people working on things as much as he can. This way they can start working as soon as he is inaugurated. This is on the probe. It is really unlikely to produce evidence that would change that outcome. Maybe it is some ammunition for a long shot effort to delay joe bidens certification as president while they push a legal challenge. So far, all of these legal challenges have not done much. This is an unprecedented memo that was written to authorize u. S. Attorneys to open inquiries into these potential irregularities. Even though they acknowledge there is no conclusive evidence at this point. It does seem a real longshot that they are going to find some things. He could stoke some delays. It could stoke some delays. Rishaad thank you. That was Jodi Schneider there. Affiliater canadian speaking to Morgan Stanley about the u. S. Election results. Asking james gorman about the battle for control of congress. We dont know if the republicans will continue to hold the senate. I assume they will with the georgia reelections in january. We dont know if President Trumps many legal plans will prevail. I assume they dont. Coming up, we discussed the impact of having more women in peacekeeping roles. In crisis areas. This is bloomberg. Women are not taking a bigger role in National Security and Foreign Policy issues. We spoke with you and ambassador at large for global womens issues. Kelly curry is calling for a shift in gender perspective in all you and peace and security efforts. Of these women and the leadership role that she plays in indonesia. Women around the region are showing that women can lead in National Security and Foreign Policy issues. And that they can do it standing on their own feet. And the other place where it really shows me where i see the big difference is in a place like afghanistan where women have reclaimed their rights over the past 20 years and have they are at the forefront of the fight for womans equality and to preserve their hardwon gains in afghanistan. I think we now consider these issues to be instrumental in achieving lasting and sustainable peace. We talk about how progress has been made over the last 10 or 20 years but that progress is not happening fast enough. Your view, what is the biggest hindrance to women picking up leadership roles that are happening in places like afghanistan. That has been happening in the pacific in a big way. They see it as a threat rather than understanding that it actually helped to make includingk that are, that women make decisions work better. It helps to introduce elements that ensure that peace processes are more sustainable and more durable, that they address underlying root causes and are not just about silencing guns, it is about addressing the grievances that allowed the society to break down into violence in the first place. It requires a real shift in mindset. To get people to understand that power is not a fixed thing but that gets something people participating. Is part of the u. S. Global peace initiative. Women are encouraged to participate and lead in peace operations. About the feel peacekeeping operations . How does it change the possible outcome . It is one of those areas where we have seen tremendous improvement and yet when you really put it in perspective, you see how far we really have to go. We do see countries in the Pacific Region leading. One of the first peacekeeping they south sudan headed for medicine back. Youre often dealing with women and children and issues of serious challenges that women whether it is about Sexual Violence or some of the other challenges that women face, they may not be accountable going to a male peacekeeper. As you mentioned in our conversation, on a more personal level, you have always been connected to him and i. Practicesagain show a basic pattern of targeting women. What is the basis for that observation . One of the most persistent aspects of what is happening is break down the identity. Targeting the family connections. You see the largescale detention of men between certain ages which disrupts family life. It was a very big environment permissive environment for sexual abuse and exportation. They dont have due process. The conditions are generally ripe for abuse. We have also seen very credible oforting about the use extremely coercive. Similar to what has been used in the past, that is the one child policy. It has been done at a time when those practices are no longer being used with the majority. It calls into question the motivation that this is not really about Family Planning what it is about something else. What is the way forward, ambassador . You said it is like the curiosity of reported abuses in the province. If indeed these atrocities are happening . We are taking specific action to put u. S. Businesses business connections in shenyang. Please look at their supply chains and make sure they are not being implicated, whether it is in forced labor or even abuses. We are just trying to get the high commissioner for you minimize. This is to visit china and chinese ones. He because the high commissioner for him and writes is insisting on her own modalities and establish modalities of the humor and counsel and Human Rights Watch office. The chinese have not been able to come to terms with that. I think that is very telling, the extent of their willing to go to. Also, the narratives that china is trying to come out. This is the general Poverty Alleviation strategy. Rishaad she was ace speaking socially to our coanchor. Face. Up, punched in the we will hear from phil spencer, the man in charge about the challenges that face him. His bluebird. This is bloomberg. Lets have a look at the latest business flash headlines. Selling 12 billion in bonds. Snelling ant selling debt in fivepart. Americas biggest carrier needing more airwaves to keep up with demand. Revlon shares soared. The company mangled with creditors just hours before they d to jumped by a half. Far less than face value. That deadline is later today. Amazon is the latest eu target as the regulators check how the company uses rivals for sales data. Says itpean commission expects breaches of antitrust bows on the use of data from independent sellers that could benefit amazons henris arm retail arm. Is using their own inhouse chips for the first time in macbooks. They claim they have better battery life, faster graphics and speedier operation. That theypple says would allow devices to Work Together more efficiently and use variation of the same chip. A complicated battle with apple over the popular fortnite game, the dispute game when they circumnavigated the Payment System for the cycle. Apple stopped new users and countersued, alleging theft. That claim has been thrown out but apple is breach of contract does go on. From the pandemic to stiff competition, michael softs Gaming Division has been through a chaotic year. It is here now but the micro Top Executive vp sees unprecedented demand. Today, we launched reports of outages. Every week, we will have new consuls coming in. Please just check with their retailers. We will be in the state for a couple of months, honestly. The pandemic has we have seen a real surge in gaming activity. People staying at home, playing games with their friends and family online. These consuls are launching to unprecedented gaming demand. We are building them as fast as we can but there is a lot of demand. We know that the outage was fixed in a little more than an hour but what happened . It impacted 10 of our base that was trying to log in, working with our networking team. We work through it pretty quickly. It was just a number of things. It was not just an icebox issue. It was rectified pretty quickly. We get reports of people setting up this. How long do you expect that to continue . We have to put the safety and security of our teams first and foremost. It is not lost on me, we are building videogames here, we are not front line work. It is not an essential service we are providing. When we look at tradeoffs between the quality of the game, the safety of our teams and the date, we will always focus on quality and safety first. That is what we are working through now. A lot of teams are now. We will work through it diligently to make sure that we are building games in a safe way. It is a long process. And a microsoft is taking a different approach to other game makers, a very unique approach but you have few out there saying without halo that playstations initial lineup is better. How concerned are you about that . We are selling every console we are we can build right now. We feel very good about the demand for xbox. We are taking a different approach. This is the generation of the player, not the generation of the device. There are older models that would sell one device. Fortnite is available everywhere. It is in the hands of the player. That is how we build our strategy, our games are playable on multiple devices. We have game passer that people can build their library through subscription. The power to the player in expanding the available options for new players as they come into xbox, that is clearly our goal. Breaking some of the normal tropes of the traditional gaming industry but think it is for the better of games as the industry continues to grow. You and i last talked when microsoft declared bethesda one of the biggest acquisitions in microsoft history. Game be . The first are you interested in buying more gaming studios . We announced our intent to require. We are working through the wrigley tory issues. With bethesdawork at this point, they have a strong roadmap, they have some games announced that are coming out. We cant wait to see games like starfield, that is a new franchise that will come out. That should be really exciting. The content is what gamers play. We build these platforms and services to build the best games for gamers everywhere. Bethesda nearly doubles the size of our first party. We are still out there, looking for other teams, it is important that we have a continued supply of great games for gaming subscription and platforms. That was the micro site executive for gaming, phil spencer, speaking to emily chang. Singapore we are hearing that it is going to start from november 22. That is what officials are saying in separate media briefings. Rising to daily phrase from december 7 now. A maximum of 200 people will be permitted on each flight. Is after the two asian have first announced this would be reviewed after one month, saying that if there is any flare up in various cases, this would be reviewed as well. Having a look at Singapore Airlines yesterday, jumped the most since 1987 on the vaccine news. No surprise, a little bit of a retreat through there. A lot of this travel bubble news has been priced in already. The Bloomberg Airline index coming up its biggest jump since october. This is holding at a twoyear high. Anyone who requires a coronavirus test will the able to provide from december 1. This is the asiapacific index, rising for an eighth session. It is holding a january 2018 highs. It is falling almost 6 . But it is coming back as we see other bit of movement. Are trading at a record. The kiwi is holding at 2019 highs. The rbis holding rates and saying it plans to offer banks cheap loans from december. Rishaad pledge more to come in the next hour of Bloomberg Markets including a look at trade in the biden era. 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. It is almost 11 00 a. M. In singapore. Looking to Bloomberg Markets asia. I am juliet. Rishaad i am rishaad in hong kong. Having a look at the top stories. Alibaba sliding in hong kong. Chinas Biggest Tech Company breaking the new changes over alleged unfair practices. Juliet the u. S. Ramping up the rhetoric with china once again. Secretary of state mike pompeo saying the Trump Administration is not finished with beijing. Rishaad and asias richest man reversed to cutthroat tactics to shake up in asia. Walmart and foot cart. Lets check in on the markets. At january 2018 highs here. A lot of momentum coming through in japans index. We are watching this fall in the handset in the hang seng index. We have seen this index slump by almost 9 over the last few days as beijing clamps down on the industry. The same dollar holding at a twoyear high. Bubble, wea travel see the quarantine replaced with the covid19 tests from november of 2022. Also, having a look at the yield there rising on new zealands 10year. They do their plan to offer cheap loans from december. They said new zealand will enter the session in the Fourth Quarter of this year. Rishaad lets take a look at the banks. 17 down so far this year. It has been making a comeback of late. 8 higher. Something to do with the currency. The highest level since january. This is the most amount of local equity since 2010. Dayan see the seventh straight of games there. 5 . 5 to the upside. Juliet china is stepping up efforts to rein in some of its most powerful tech companies. Jolting investors and doing a blow to the countrys richest under veneers. Alibaba shares falling in hong kong. A booming start to singles day. We are seeing this tech selloff deep into 203 billion. The coanchor is at alibaba global headquarters. Why is alibaba and these other tech giants, why are they being targeted by beijing . We saw these new regulations unveiled yesterday. They will be consulting the Chinese Government for feedback on these. They will clearly build out a framework around trying to curtail the power and the influence of these major tech companies. Not just alibaba but tencent and jd. Com. Is a pivotal moment, some have argued in terms of the regulatory approach toward china pot internet and Technology Companies after what was relatively handsoff start for the Chinese Government, under these new proposals, they would look at it at making it more difficult for these copies to share data and build alliances that might squeeze out some of their competitors and offer subsidies to undercut some of these startups trying to carve out market share as well. This is an antimonopoly pushed by chinas regulators. What were hearing is more regulation in the pipeline as well, june of 2021, there could be more restrictions on Financial Transactions that are unveiled as well. All of this is coming after financial regulations that led to the scuffling of what have been the Worlds Largest ipo. The smaller Tech Startups and lists, this isor how they get funds to do that. That is also coming under scrutiny. It is a significant day, significant couple of days for chinas tech companies. He went there because it was singles day. I think we are expecting another record, it is a big surprise. I suppose it is pent up demand because of the pandemic. Perhaps it means the people who were not shopping before our this time around. Certainly. The regulatory changes overshadowing the event today. Still, the numbers speak to themselves. You are looking at 56 billion worth of sales already. The event does not finished until midnight, tonight. That compares to 38 billion for 2019. They already smash that record. This is a shopping extravaganza that eclipses anything you see anywhere else in the world. It is much bigger than even black friday and cyber monday combined. It is huge. They are a couple of things driving the demand. It is the pent up surge. These are the 5g upgrades of people buying new smartphones, grocery has been a big theme. Also, getting back into travel and booking hotels. That is driving these numbers as well for alibaba. It is an important platform for foreign brand, particularly when the home countries are facing the pandemic and where growth has not picked up to get more exposed to china. We will see about 2600 new foreign brands, trying to carve out that market share again. Smashing the 29 numbers. We are going to get the full number at midnight, tonight. That is a success for alibaba. We want to show off their cloud limputing services and their a functions as well. Functions as well. It suggests there is a bullishness among china consumers. Chinas consumers. That was Tom Mackenzie. Some welcome cheer for two of asias beleaguered airlines. Lets find out more as we get to the first word news with karina mitchell. Good news in the airline sector. The bubble will start on november 22. Initially, there will be several flights a week starting from december 7, 200 passengers will be allowed on each flight and quarantine will be replaced by testing for covid19. It is hoped that the fights between the financial hubs will bubbles inte for other countries. Quick chinese parents are asking a federal Appeals Court in washington to intervene with the Trump Administration. They are seeking to halt the forced sale of the app on National Security. Sell to oracle and walmart. That deal hangs in the balance in the white house. Delays coronavirus data shows the u. S. Reporting more than 142,000 cases on monday. Covid19 makes a return to cities across the country. Two months ago, the virus was mainly overall problem, the metropolitan areas are reporting record numbers of new cases. The report of their biggest mortality rates in the middle of april while hungry is making the wearing of masks in public mandatory. President elect joe biden says President Trumps refusal to concede the election is a national embarrassment. He is pressing on with transition plans as the white house and the republicans continue to challenge the results. Has authorized the Justice Department investigation into potential voting irregularities. Although he acknowledges there is no conclusive evidence. Global news, 20 for 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. Juliet still ahead, we discussed the regional copper with a tradership to expect it to be signed this weekend. That is next. How to uncover the years elections and recent vaccine developments, how they could shape asias credit markets. Asking blackrock why they remain inquisitive. This is bloomberg. The dallas fed president said he is optimistic about u. S. Growth over the next two quarters but things it could be derailed by covid19s research is across most of the country. The highest priority when it comes to stimulus should be unemployment aid which he sees as essential for the economy. We have a severe headwind we are dealing with. On the positive side, we have been rebounding in the United States since may. Mobility and engagement, we tracked it very carefully, it is up substantially from april. Even the resurgence is back. He is the issue. People can power through this until the local hospitals are overwhelmed. That happened in el paso for example. It is at risk by our measure of it happening in other cities in the country where people dont want to lock down but the local government does not have a choice dont have a but to lock down their health care system. We are headed in the wrong direction. Over the next two quarters, i am very optimistic that we are going to grow at very strong rates but a real downside over the next two quarters is if the resurgence gets so bad, it forces lockdowns because of overwhelmed health care systems. I cannot say enough. I thought that they had their strongest day with the experts on the pandemic. I did make note of el paso a number of days and weeks ago and the critical situation there. For you and for your team at the dallas fed, is it a question of days, weeks or months . Before we find the constrained constrained in our hospital care . In our hospital care . It will probably be weeks, not months. We are watching wisconsin, we have noticed all of the sudden mobility and engagement has rolled over, that means people are pulling back. This is something we have to watch. That is why the basics, mask wearing, social distancing, Health Care Protocols are essential now. We found that when people do observe that in a widespread way, resurgence mutes. We are washing hospitalizations all through the country and they are going in the wrong direction. Quarterk at the two slowdown. The ratio you had at Harvard Business school, that is our nations productivity, what is your study of our nations productivity through this pandemic . What do you see through the next two quarters . It has been bifurcated by educational entertainment. You are able to be surprising productive remotely. It is like a High School Education nevertheless. It is very likely that you dont have an option to work remotely. The nature of your job is persontoperson. Your mike lee to have lost income. You have almost certainly lost productivity. If you dont have access to wifi, that means some areas in the country inn at risk areas has reallyuctivity been hurt. It is a tale of two groups. It is a real challenge we will have to work on to work our way out of this pandemic. Quick to work our way out of the pandemic will take stimulus. To work our way out of the pandemic will take stimulus. Is this for income substitution or replacement . Maybe more like what we see in the United Kingdom when governor bailey is there a different calculus for america in providing assistance . With for those who lost their jobs or cant get enough hours, on employment benefits, state and federal have been essential to making ends meet. Own sense, we are watching this very carefully. Fromense is the savings that fiscal stimulus starting to run out. We dont know exactly when it will run up but when it does, incomes will start to drop and Consumer Spending will start to weaken. The highest priority is some continuation at some level of the unemployment benefits. That was Robert Kaplan speaking to tom. This is the head of asian credits, blackrock, he joins us from singapore. We have a vaccine hopefully on the way. We also have the possibility in the u. S. Of some clarity of what will be happening over the next four years. On top of that, the hope still remains a hope that we will have aligned fiscal and monetary policy, all of that is boding well for certain Asset Classes, particularly, credit. Tell us about it. I think the backdrop for the risk assets are positive. You think about the uncertainties and the digital pickup. A lot of the investors are being cautious. That is slowly getting out of the way. Is a very important bridge to the reopening of the economy and the resumption of economic activity. That got hampered by the virus. Itn we see the resurgence of. When you put it together, there is certainly a good reason to be positive. You take a step back and look at it will bepicture, very profound in 2021. Credit is wellplaced globally. Also in asia. We see volatility certainly on the way down. We have a chart showing how that volatility has been creeping lower. What are the indications for the assets that you watch . All, theirst of volatility to go up. Beasley, the resurgence of covid in u. S. Elections pushed Asset Classes classes higher. As we see some of that going away, it is really coming down. I expected to come down further in the next year. As Economic Uncertainty goes down with the reopening of the economy, u. S. Elections will be behind us. Overall, i think that is a positive for the risk assets. A number of investors are sitting on the sideline back in the markets. The cost of waiting is still relatively high. Juliet lets talk about what could yield you something. You have a modest short in the greenback against the likes of the yuan, the rupee. Where do you see some further strength coming in on committees in asia in particular . Lets start with asia. From the covid standpoint, the rebound in asia has been very strong. In Southeast Asia, we are starting to see the overall situation improving. The fundamentals are strong in asia. If i look across the globe, asia is probably the best region in terms of growth. Story from the fundamental side. That should more bring more capital into the region. Themobvious he keeps supported. I wanted to ask you about where you are looking for some opportunities in india. This is a country that found it a little difficult to control the virus but youre seeing some potential rebound here after the covid stock. Neeraj in india, we have been somewhat cautious. But given the size of the market and the breath of equity, we do bits and credit, we are positive on the bonds. We are selectively looking at the credit in india. There are pockets of proportion that you can actually position for going into 22 21. 2021. 100 do yout you have a conviction trade . Neeraj chinese credit. Both onshore and offshore. Duration . A quick answer. We like it. Juliet coming up, it is time for our morning calls. We take a look at some of the top recommendations across markets. Sophie kamaruddin will join us from hong kong. Putting more ahead, this is bloomberg. Juliet a quick check of the latest business flash headlines. Amazon is the latest eu techtarget as the regulated checks out how the company uses the rival sales and also talking about whether it unfairly favors its own product. It expects breaches of antitrust rules on the use of data from independent sellers that could benefit amazons own retail arm. Camp this for the box the drive sales. A complicated battle with apple over the popular fortnite game. The dispute began when they circumvented apple Payment System. That claim has been thrown out apples which of contact contract goes on. Rishaad it is time for morning calls. Sophie kamaruddin has been looking at tech shares. Are any players immune . That is the one question at least. J. D. Will see insignificant impact, tencent as well, even if it changes its we chat operation according to a strong gaming outlook. They see opportunities to buy jd, tencent, they will likely see small impact from antitrust risks when it comes to atomization. Adjustingphie is outlook for asian stocks as well. What are the bright spots . You have upgrades in hong kong. That is such a king of this month. Also, flipping the page. I want to highlight train equities, the pickup we have seen in export growth and Consumer Confidence and the bounceback in industrial output. That is buddy well for value sectors as well. This is we are seeing the kiwi dollar rise with the tenure up about 13 basis point. Needed givens are the view of the economy. Ins is for subzero rates 2021 and over. They are tweeting their forecasts on the central bank, retaining the dovish stance. This could be a slower pace of cuts given the balance of risks, they see a drop to the cash rates and it could follow another additional rate cut. That is Sophie Kamaruddin there. A quick look at markets. We are seeing further gains. The hang seng is learning. China is going for his lunch break now. Lets check in with the price action there. Tech very much at the forefront. Taking theally been shine off chinese equities as we go into the shanghai shenzhen lunch break. This is bloomberg. I sent your new prescription to the pharmacy. Any idea how much it will cost . You have a choice. Insurance or goodrx. I have insurance. Insurance is not what it used to be. People struggle to get their prescription covered and prices keep rising. I recommend goodrx. You get free coupons to save on your prescriptions. [narrator] compare prices to get the best discounts. Goodrx, smart. [narrator] stop paying too much for your prescriptions. Download the free app today. Youre choosing whento get connected to xfinity mobile, 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. Rishaad india hazy. 27 degrees in mumbai at the moment as we look forward to a positive start to the trading day. Looking possibly at seven Straight Days of gains for Indian Markets as we have been hitting record highs over the nifty and sensex. Rupee pretty much unchanged. Futures contracts confirming that rise. 1. 5 . Ore contract rises juliet we are looking as well as japanese markets coming back after the lunch break. The topix is getting close to erasing its 2020 losses. Japanese markets on an absolute tear. Nikkei holding at 1991 highs. The hang seng index, tech fell off, deepening to 203 billion. This after the antitrust rules. China laying out regulations against monopolistic practices. Yields in the kiwi and australian bonds as well. Now markets repricing whether you will see negative rates from the rbnz. At 25nz holding rates basis points. Lets look at some of these moves in Airline Stocks as we finally get details of the singapore and hong kong travel bubble. Singair rose yesterday the most since 1987. No surprise a little bit of a fallback. ,e are hearing these flights with covid19 testing replacing quarantine. Sing dollar is holding at that two year high. Positive news on testing for covid19 with anyone able to get a test from december 1. Lets get the first word headlines and head to new york. Karina u. S. Senate republicans moving to avoid a government shutdown, releasing bills to provide funding. Mitch mcconnell, who was just reelected as Senate Majority leader, says keeping the government afloat is a priority in the postelection session. Top democrats object to the proposal due to the lack of emergency funding to fight covid19. The current stopgap funding plan expires december 1. The European Union has clinched a deal on longterm Spending Plans, moving closer to a landmark budget and stimulus accord worth the equivalent of 2 trillion. Policymakers are under pressure to agree a package on next year as surging virus numbers and the worst recession in its history. The European Commission says the plan will add 2 to economic output. The u. S. Is wrapping up tensions with china, with secretary of state mike pompeo saying the administration isnt finished yet with beijing. He used his strongest rhetoric so far against chinese leaders, calling the communist party a marxist leninist monster. Pompeo quoted former president Ronald Reagan to predict the end of one party rule in china. China is moving toward a paid reason test for all a patriotism test for all hong kong lawmakers. The move would give the Hong Kong Government power to eject members who are not deemed sufficiently loyal. Aresition lawkers threatening to quit en masse if this is not thrown out. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. Juliet we are just getting breaking news that the hang seng tech index is extending declines, down 5 , adding to the losses we saw yesterday. Big falls coming through in the likes of alibaba and tencent after china laid out detailed regulations to rule out monopolistic practices. Extending losses over the last two sessions to Something Like 10 . Lets switch gears. A summit will be held this week. The signing of the Regional Comprehensive Economic Partnership will be one of the key highlights. Vietnams is the trade deal could be signed this weekend and this would be the largest freetrade agreement in the world. Lets discuss with the lead researcher for political and security affairs. Thank you for joining us. Are you confident we are going to see the 15 nation block sign a deal by the end of this year . Yes. Rcep agreement has been scheduled for a virtual signing ceremony on the 15th of november. The participating countries have invested a lot of time and Political Capital in this trade deal. I think they are determined not to meet the deadline this time. Juliet what about the return of india to the asset deal . A lot hinging on this too. Hoang i dont think india will join anytime soon. Rcep at thisthe stage would hurt its Domestic Industries and open even more pathways for chinese goods to enter its markets. On top of that, the covid19 pandemic and Deadly Border clash with china in june this year have [indiscernible] incentives for china to distance itself for the rcep. If india wants to leverage the ongoing restructuring of the Global Supply chain, moving away from the Production Network that has been centering around china, now to become a manufacturing hub in its own right. Thisad what does agreement, if it is signed, actually do . Mega trades a huge deal, which accounts for one third of the worlds gdp. It is expected to deepen economic integration among the 15 participating countries through liberalization in trade, improved services and investment, and also through trade and investment facilitation. Currently, the 15 participating countries have various bilateral ansting which create effect. Rcep is expected to remove this affect to make trade among these countries more effective and streamlined and easy. The expected economic benefits out of the rcep. More than that, the rcep henclusion suggests t participating countrys commitment to open and free trade at a time when the multilateral trading system is cracking at its seams. It also demonstrates the importance of aseans Initiative Economic picture in the asiapacific. Rishaad tell me, though, weve got probably a new president in the white house in joe biden, seen as a strong multilateral list. Could he bring the u. S. Back to the tpp . Would the tpp live alongside rcep, or would one usurp the other . A tpp i dont expect with the u. S. To happen anytime soon. The antitrade sentiments are prevailing right now in the u. S. , from the left to the right. In the recent president ial election, nearly half of the american electorate voted for President Trump, who had politically tried on antitrade platform. Would have ton attune himself to this trend. On the campaign trail, biden talked about fair trade, not freetrade. There is no mention of the tpp or International Agreements the Trump Administration had withdrawn the u. S. From and biden promised to bring the u. S. Back in. As biden already said, he will not rush into any new trade agreements at this time and instead will focus on putting american economics in order firs t. Juliet as you say, he will put the American House in order first. Does it matter in terms of change at the white house, or a lot of these countries in asean, will we see some of these relationships mended or changed, or does it stay the same regardless of who is in the white house . Hoang it is mixed reaction and response. On the positive side, asean countries expect the Biden Administration to return to multilateralism, especially aseanled institutions of Regional Cooperation in the region. And to reach a certain stability and equilibrium in the u. S. China competition. There is a lot of hope there in the sense of more stability and predictability in the u. S. Engagement with the region. Biden same time, the administration will have to deal with a huge challenge domestically. The concern remains whether the u. S. Can engage meaningfully with the region in the coming time. Hoang, thank you so much. Up, Mukesh Ambani smashing his Indian Telecom rivals, deploying the same technique in the ecommerce space, which means he will go headtohead with amazon. This is bloomberg. Rishaad this is Bloomberg Markets asia. Four years after crushing rivals in Indias Telecom sector through cuts to pricing, Mukesh Ambani is deploying a similar tactic in the ecommerce space, which is dominated by amazon and walmarts flip cart division. He is offering discounts on ofrt phones at the peak diwali shopping season. Jiomart to take on its rivals . Amazon has competitors this year for diwali. But jiomart is the largest when it comes to Offline Stores. It is also in the process of buying a future group. Offer througho Offline Stores. For amazon and walmart, they are lacking this Offline Store. Can liberate the Offline Store strength. Is going to put more ammunition into an ecommerce play like jiomart. Make trying to [indiscernible] juliet tell us about some of the specialties of this festival battle. P. R. they have the most items sold over ecommerce porters like amazon and fashion apparel items. Jiomart is also offering a similar thing. They have come out with a huge discount for special items, including virtual items. They are not restricting. Hemselves to these items [indiscernible] things we have to leave there. Thank you so much. Weve got breaking news coming through. China is going to make patriotism a requirement for lawmakers in hong kong. It is something which had been flagged before. Many of the Democrat Members of the Legislative Council have been saying they would quit the chamber as well. This resolution was apparently deliberated and passed by the National Peoples Congress Standing committee and gives the Hong Kong Government power to directly disqualified lawmakers in question without going through court, according to two unidentified people. This resolution passed by the legislative body would make patriotism a legal requirement for hong kong lawmakers. This from the south China Morning post. Lets have a look at what is going on in mumbai. Nifty futures were indicating we would be seeing some gains. Seven Straight Days of gains at the moment. Set for seven at least. Similar sort of gains for the sensex. Nifty banking index pacing the rises. We have some additions from the msci index compiler. Some Companies Just entering the index, that benchmark. It means they should get a feel of those people invested in that fund. Mahindra bank up. Trent, which operates department stores, 4. 5 to the upside. Yes bank outpacing the rest of the nifty banking index. Info tech 1. 7 to the upside. Juliet coming up, more details on hong kong and singapore announcing the start of the air travel bubble. That means the end of quarantine for travelers between the two Asian Financial hubs. Details are straight ahead. This is bloomberg. Rishaad after we saw that burst of good news in the fight against the coronavirus this treatmentsifferent may be necessary, even once a vaccine is released. We are studying what we call passive immunization in a setting where you are trying to prevent spread. In our case, we are looking at spread within nursing home facilities. When you get a vaccine, we introduce a killed or modified version of a part of a virus and your body recognizes that as foreign and mounts its own antibody response. Here we are giving you the antibody response of someone else prior to getting sick. It is not approved by the fda and we dont have the data yet, but that is an interesting approach. If we look at viruses like ebola, this is the setting where the antibodies made the biggest difference. Around the world, Nursing Homes and elderly are at the highest risk, so this would be a positive event if it occurs. To build on what tom is discussing, we are asking whether we need a multipronged approach, also couple mended by what you are doing also complemented by what you are doing as well. Vaccine fight and storing it, freezing cold temperatures. Can you talk about how difficult it would be to distribute Something Like that widely and everywhere . Dave for the messenger rna vaccines, they are fragile molecules. They need to be held at a very low temperature. That will likely i dont think that will be a major barrier once this is broadly available in developed markets with advanced medical systems. Where it becomes a problem is where refrigeration and available capacity in developing countries it is going to be much tougher and will take longer. That is why we have two of the leading 10 vaccines using this technology. Eight arent and likely wont have those refrigeration constrictions. I suspect some of those will work as well. I bet on that. And we will likely end up with multiple vaccines. None of them will work 100 of the time. We will still need medicines like our antibody therapy to help those that will still get sick, hopefully at a much lower rate as we approach Something Like herd immunity, but you will still have endemic disease and need therapies. There are many examples where this is true, like common respiratory therapies. Vaccines and antibodies can go together. In the last 24 hours we have two important of elements in the fight against covid19. The future is looking brighter, for sure. There are some practical concerns as all of the pharmaceutical companies try to ramp up productions. Supply issues, as the pandemic worsens, the idea that all of these pharmaceutical companies are trying to do the same thing and probably sourcing some of the same substances as well as using some of the same staffers. How well can you wrap up production of antibody therapies to meet demand in the next couple months . Dave i would not worry so much about the competition phase. Once it is clear there are winners, you will see the industry come together to make product at scale. That is already true in the antibody space. We have teamed up with amgen and the largest Contract Manufacturing organizations in the world like samsung and fuji to build out that supply base. I dont think we are wasting material by competing in that way. The antibodies are complicated to make. We usually reserve them for severe disease like cancer. Here we are talking about treating millions of people potentially with these antibodies. People strain that system, and we will have scarcity for sure. That is why, when the fda approved this, asked doctors to use it in the highest risk patients where it matters most. Juliet that was eli lilly chairman and ceo dave ricks. Singapore and hong kong will start an air travel bubble on november 22, which means several flights a week between the two financial hubs will be exempted from government mandated quarantines. Lets get more details from our asia transport reporter in singapore. How will the air travel bubble work . I am hearing about quite expensive tips on both sides. Basically for this to work, all travelers from both sides take covid will tests 72 hours before their flights. If they get negative results, they can basically start on their travels. There are a few requirements. Singapore asked travelers to keep tracing on their phones available. So there are certain rules in place, but generally this is to remove the quarantine in place in many countries and replace that with testing to make travel much easier. I suppose the sheer cost of these tests could make people think twice about traveling, but it can only help, can it not, and engender further travel bubbles down the line . And news about vaccines may be available soon. Do we need these travel bubbles if vaccines are available . I suppose we need them until they become available. Yes, i think these travel bubbles are still needed because it will take time for those vaccines to be available. Initially they will probably only be available to certain level people, probably people in the industry who are in the fro nt of defending these covid19 cases. By the time it gets ready for the mass, that will still take time. That is time the Aviation Industry cant wait. Having these travel bubbles available will definitely help in getting people more confident about flying before the vaccine becomes more available. Juliet our asia transport reporter in singapore. Thanks for joining us. What we are watching in terms of in hong tech stocks kong on the hang seng index extending yesterdays decline. We see china laying out detailed regulations for the first time to root out monopolistic practices in the internet industry. Over the last two sessions, the hang seng index down by 5. 6 , most of these drops coming through by the likes of alibaba and tencent. Alibaba shares in hong kong down by a must 9 almost 9 . Fromad that is it Bloomberg Markets. With oil, we have seen a rally in the oil price. Daybreak middle east is next. Emily im emily chang in San Francisco and this is bloomberg technology. Coming up in the next hour, president elect biden says President Trumps refusal to concede is an embarrassment. What exactly is going on in washington . We will get the latest. Apple launches three new, signaling the transition away from intel chips