Boost the recovery. Larry summers says the coordinated Global Response is needed. And airbnb books an ipo in new york, aiming to list shares on the nasdaq. Booking through september a total of 18 billion. Although it admits covid19 continues to affect the business. Lets take a look at the asx. More than normal when it comes to the australian soft market after it had the data disruption out. Yesterday was the longest outage in about a decade. Of course, it meant australian traders missed out on the bulk of the days rally. Only trading for a halfhour. We are seeing a pretty modest start, less than 2 10 of 1 higher at the open. Perhaps some caution there could be more technical difficulties. We are seeing gains when it comes to trading in new zealand. Nikkei future setting off on a bad foot as we are seeing some profittaking. It does look like the vaccine driven optimism and the rather we saw overnight will continue, with s p active futures in the positive. Shery we have breaking news at the moment. Global regulators are expected to hit shadow lenders with new rules. We have the Financial Stability board in a report in europe saying that Investment Funds and shadow lenders are threatening the stability of the financial system. They did so at the height of this years pandemic fuels market volatility. The nonbanks of written Financial Systems ability back in march during the start of the global pandemic. Key areas of vulnerability during the mayhem include Big Investments dash for cash, redemption and mutual funds, and money market funds. Global regulators now expected to hit shadow lenders with new rules. Back to the positive vaccine headlines. Is nearlyys its shot 95 effective and has a longer shelf life than anticipated. Max neeson is on the line. Us whatrna ceo told sets this vaccine apart. Take a listen. What is important with todays news is we can have 40 days of vaccine stored in a regular fridge, like you do insulin. Kn,ou know, every pharmacy hospitals have that give ability. With think it is important game changer. The other piece to keep in mind is our vaccine does not require dilution. Shery what else should we know about this vaccine and how does it compare to pfizers as well . Max absolutely. Id say the biggest distinction beyond those storage and distribution things that were just mentioned in that clip is that they provided a little bit more data than pfizer and biontech have so far. 94. 5 , ottawa know if that is something that will end up being a huge differentiator between the vaccines. What we do know about modernas vaccine which may be true, also for pfizers, is it also succeeded in preventing severe disease which is obviously crucial for the vaccine. It seemed to work in a variety of different subgroups, notably in older adults which are a group that vaccine efficacy can sometimes be a little bit worse. Because their immune systems that i work quite as well. All of that is really encouraging. It sort of adds to the view we already have from that headline number that it is quite an effective vaccine and should do a lot once manufacturing ramps up to help bring the pandemic under control over time. Haidi we know that both vaccines use the same messenger Rna Technology so what is the upside and downside of this technology . When you compare the two sidebyside, do you see meaningful differences in terms of the ability if we just have these two, will they be enough . Max i think the upside beyond the fact that mRna Technology helped them get here so quickly is that they are adaptable and that they should theoretically at least over time be able to scale up manufacturing quite rapidly. It is just going to take time because these are new technologies. There is not that big existing stock of plants ready to pump out vaccines, as you might have for more established technologies. The other disadvantage is that because these are new technologies, there is less of a history in terms of longterm safety and efficacy data. That is not something that will prove to be a problem but it regulatorse a lot of and governments to watch closely. Comparing the two sidebyside, i dont think there is really too much to differentiate. You really are going to need more data from both which will likely be published in the next few weeks, as they seek regulatory approval. In comparison to other vaccines that may be on the way, again, that will take data. What you can say about the alternative approaches, there is a bit more history behind them. That makes people more comfortable and they might be easier to store even than the Moderna Vaccine which is an improvement on pfizers. Haidi speaking of other trials, we know Johnson Johnson is busy. Johnson johnson has begun its late stage trial on a vaccine on a two dose regimen. 30,000 people will be getting two doses. It will be testing a one dose regimen across 60,000 people. We heard yesterday they will be moving to a third phase in the u. K. In addition to the trials taking place on the u. S. Side and across other parts of europe. Max, give us your reaction as to what this, the prospects of this vaccine, the j j candidate are. Max i still think it is quite promising, especially because, if not a proof of concept with the same technology. We have some indication that vaccine makers are targeting the right protein when it comes to the coronavirus. That suggests a higher likelihood of success. The one area of concern i do have is that with other vaccines potentially on the way, it may get a little harder to recruit for these trials because they do give the opportunity you might have a placebo and set of the vaccine. I am hoping that will be an issue because we are still a long ways out from wide availability for most people. It is something to keep in mind even if the shot ends up being quite promising. It may be a little bit longer in order to get an answer on that so it is something to watch out for. It may end up being a case where we have to do instead of placebocontrolled trials, a noninferiority trial where you compare the Johnson Johnson vaccine or others in the future against pfizer and modernity vaccine. Bloomberg opinion columnist max nisen as we get more developments from Johnson Johnson. Mitchell you to karina with the first word headlines. Karina the Trump Campaign is withdrawing a central part of its lawsuit against the Election Results in pennsylvania, abandoning claims that almost 700,000 mailin ballots be thrown out because observers were kept away. The case will open later tuesday but the White House Team has revised its filing while still appealing to block certification that joe biden won the state. China is repeating its calls for Global Solidarity on rising protectionism as it adjusts to the idea of a new team in washington. The Vice President told the Bloomberg New Economy Forum the world should reject unilateralism and build an open system that works for all. The comments will reject President Trumps american first policies even under a new administration. Countries must rise above and reject. We should build an open World Economy that works for all. Safeguard the system under the wto and reject unilateralism and protectionism. Ipo,a airbnb filed for an saying it is looking to enlist on the nasdaq. The home Share Company aims to go public after a tough year with bookings hammered by the coronavirus. Even so, revenue was 2. 5 billion compared to almost twice that for 2019. Global news 24 hours a day on air and on bloomberg quick take, powered by more than 2700 journalists and analysts. Im Karina Mitchell. This is bloomberg. Shery we have more on the airbnb ahead. We have the details of its highly anticipated ipo. , plus, closely guarded financial details. For the first time, a look at the numbers later. We talk markets with invesco chief Global Market strategist christina cooper. That is coming up. This is bloomberg. Shery investors energized by the recent batch of positive vaccine news. Our next guest warns this will not be the last pandemic to invest accordingly. Kristina hooper is chief Market Strategist at invesco, with more than 1 trillion in assets under management. Great to have you with us. How much more appealing have these asian emerging markets become given how well they have handled the pandemic . Kristina i think theyve become that much more appealing. Certainly, we expect other forces to drive the attractiveness of e. M. Asia, including a weaker u. S. Dollar. Quite frankly, what many Asian Countries have been able to do when terms of managing this very serious virus is very impressive. And suggest the ability to do that in future pandemics. I dont think this is going to be the last pandemic so that really has a lot of value and we can actually see more supply chains moving to emerging asia as a result of this, as opposed to west. Shery what is really interesting is weve had favorites in terms of Tech Companies really rallying, especially around north east asia. Would you invest more in those companies or are you going to cyclicals given that we have seen this recovery as well . Kristina i think you need to have something of a barbell approach, right . You need to have exposure to cyclicals as we expect at a certain point in 2021. We are going to have broad distribution of the vaccine and there will be a significant improvement in economic growth. But also, there needs to be some exposure to areas of the market like emerging asia where we have seen this ability to manage the virus very well and these are places that are really compelling longterm place because of that ability Going Forward in another pandemic might arise. Haidi we are still awaiting to hear more concrete economic policies by the Biden Administration. January of next year what are your expectations then can you imagine a more predictable administration in the white house will give rise to better business, Consumer Investment confidence . Expect a i definitely return to the more traditional approach to Foreign Policy, including trade policy. It will be a lot more predictable, less volatile. I do believe what we have seen historically and what we are likely to continue to see is that what Economic Policy uncertainty goes up, Business Investment, capex spending goes up as well. If we have Economic Policy, we have Business Investment going up and vice versa. Where we have more certainty this is actually shipping up to be a period of great certainty, if i dare say that, because we do not that Foreign Policy will be more traditional. Trade policy will be more traditional. In the u. S. , we are unlikely to see any hike in taxes. More importantly, we note that a vaccine is coming. Just a few months ago, we were hearing from scientists and medical experts, saying we are not sure we can come up with a vaccine that can handily coronavirus. With very,e vaccines very compelling effectiveness rates. This a lot more certainty for 2021 then we had in 2020 and i think that certainly improved confidence and improved Business Investment. Haidi kristina hooper, thank you. Former fed chair janet yellen has added her voice to more visible support for the economy while the former treasury secretary Larry Summers says i stronger coordinated Global Response is needed. They spoke at the Bloomberg New Economy Forum. Notion that the fed can do all that is required at this point to support the economy is just wrong. And the fed is really pleading for fiscal relief. I believe its essential. Lessnk the fed is in successful in lending to smaller businesses that creates an impression of unfairness that the fed is on the side of Big Companies and wall street. This is something that is very fickle to accomplish, but as chair powell says, the fed cannot spend, it cannot give grants, it cannot direct aid to where it is needed for unemployed workers and fiscal policy has a very Important Role to play as well. Right ina lot has gone the major Central Banks response but what would you have done differently . Wasy look, the big thing preventing i financial collapse. Central banks acted definitively to do that. That is all that was ultimately historically important. The mistake is for them to vastly exaggerate their continuing relevance. They lack, starting at the zero bound where we are, the capacity to provide meaningful impetus to their economies in any way that is consistent with any concept of central bank functioning. They do not have the capacity to meaningfully affect the degree of inequality. They do not have the capacity to vaccinate people. They do not have the capacity to fight Climate Change. The need to acknowledge limitations of their influence in a clear way so that there can be no pretending about what they are going to do and that the authorities have the responsibilities they do. The Central Banks have also, in my view, not put adequate emphasis on the Global Dimensions of this problem. Theriking feature of contrast between this crisis and the last crisis is that the last crisis had a major response from the imf, issuance of f big increases of the world bank which was driven by the global community. Level coppern no mist of the boldness at the national level. That could get us into real trouble. Frankly, the central bankers, because they want to curry domestic political favor in each country have not had enough to say about that. Janet yellen, do you agree that may be talking about needing to target the difference between black and white unemployment rates emma for example, as it did this summer and should be engaging in this broader agenda of Climate Change . Fed has always operated under a dual mandate. It is inflation and maximum employment. In this environment of very low interest inflation, too low inflation, there is really no fed is reallyhe focused on trying to create a very strong got job market. I think they have made that clear. I am not sure many in the public on main street understand that but full employment is a goal that they ought to pursue. I agree with larry that the effective of lower bound is a big constraint. At this point, they are doing almost all they can do. They need fiscal policy to help. When they talk about inequality and the disproportionate burdens workers, what they can do is try to pursue the strongest possible job market because when they are successful at that as they were prior to with a 50 year low with 3. 5 , that brings benefits particularly to less skilled and minority workers. Shery former fed chair janet yellen an extra treasury secretary Larry Summers talking to Stephanie Flanders at the Bloomberg New Economy Forum. The forum is on all week. Catch these big conversations online, on the terminal and on the event social channels, twitter and facebook. We have an alert the bloomberg right now. Huawei saying it is selling its smartphone unit. Weve heard media reports that they were planning to sell their budget brands unit on for about 15 billion to a Consortium Led by the hang seng distributor. We have confirmation they are selling it to partners but they have not provided any financial details. Plenty more to come. This is bloomberg. Haidi airbnb has disclosed details of its ipo plans the first time, releasing financial results, previously confidential information. It was almost scuttled by the pandemic. Lets get the details from a reporter. One of the worst hit companies by the pandemic gets back on its feet. How are the numbers looking going into the ipo . Surprisingly unsurprisingly, revenue was down and losses were widened. Seeing a bit of a Third Quarter rebound but definitely 20 20 is not their best year. Cutsis on top of the job in the restructuring it had already done about a quarter of the company was laid off in the peak of the pandemic. We have seen some improving numbers, but if they have a choice, 2020 probably wouldnt be there year. Shery this is a record year for ipos. How important is it for airbnb that this goes well . Crystal yeah, so this is actually a big year for the u. S. Ipo market, a record year thanks to the companies. For airbnb, they are really committed to shareholders that 2020 would be the year they go public. If they had a choice, 2020 probably would not be on the top of their list, but because they made that commitment, they have to do that. This is really the moment. A lot of the employees have been waiting for this. The liquidity. For set aside some shares host space to the u. S. A lot of people are depending on this to become millionaires and billionaires. Haidi i we going to see more costcutting going into the deal . Crystal we are not seeing that. They are not disclosing much on their jobs front. Cost reduction and covid has been mentioned. We have seen financial improvement, Performance Improvement the Third Quarter. Costs. D cut marketing but, they are not disclosed in ipo perspectives. We have been waiting for them to go public and for the first earning calls to see what is the plan. Crystal tse there. We heard from the british sun that the u. K. s chief brexit negotiator, david frost, is telling Prime Minister johnson to prepare for the eu deal next week. He has pinpointed a possible landing zone as soon as next tuesday, according to the british sun. Coming up, joe biden makes his first big speech on the economy, but Still Holding back the details. We will see what he says next. This is bloomberg. Haidi lets take a look at how the australian stock market is trading, after quite an embarrassing outage for the asx. Only less than half an hour of trading in what turned out to be a regional and global rally before we have the longest outage for the australian for about 10 years. We are seeing modest upside, not much of a catch up trade being seen in sydney. We do get the rba minutes out in the next hour. Lets get to Karina Mitchell with the first word headlines. Karina global coronavirus cases are now approaching 55 million, higher of the 70 average of the u. S. Rising in all 50 states. California putting nine out of 10 people into restrictive social curbs. Michigan is imposing a threeweek lockdown starting wednesday. In france, confirmed cases are about to hit the 2 million mark with the Health Minister saying new lockdowns are working. The first person prosecuted under hong kongs new security law has pleaded not guilty, setting the stage for a landmark trial. He denies charges of secession and engaging in terrorism, and the case has been moved to the high court. The case will highlight how the Hong Kong Government intends to handle with a law that may inflate with big hand over. The strongest storm of a violent 2020 season is set to hit Central America later monday, bringing destructive winds and torrential rains. Iota is forecast across the coast along the honduras, nicaragua border, two weeks after hurricane eta killed at least 100 people. Iota it is a category five storm with winds of 250 Kilometers Per Hour and may bring a storm surge of six meters. And one of the mediterraneans most active volcanoes has erupted with an explosion described as high intensity. Thermal and video cameras as lava wasadvance, pouring down the mountainside. The eruption lasted about four minutes and caused widespread landslides. Stromboli is one of the most active volcanoes on earth. Global news 24 hours a day on air and on Bloomberg Quicktake powered by more than 2700 journalists and analysts. Im Karina Mitchell. This is bloomberg. Shery joe biden has made his first major speech on the economy but shares little detail on how his administration will boost the slowing recovery as covid infections surge and says containing the pandemic was key and more people would die without a smooth transition of power. For more, we have tyler painter. What exactly did president elect biden say . Repeated kinden of what he has been saying since before he won the election and throughout the summer as he was responding to the coronavirus pandemic. The american economy, the Global Economy cannot recover until the Health Crisis is taking care of. He was very much clear eyed about the challenges that lie ahead, while optimistic about the news of vaccines and their success. Also, the process of vaccinating americans and people all over the world is an arduous one. To be invested in building america back better as his slogan says, he prioritized getting the virus under control and providing immediate funding for these people as the pandemic persists. Haidi what he was asked whether the u. S. Would be joining asia and Major Economies with the trade agreement. Lets take a listen. Biden i have talked to under these World Leaders and under the law, i cannot speak with them. There is only one president at a time as to who can say what our policy can be. I am reluctant to answer that question now but here is what i can say we make up 25 of the worlds trading capacity, of the economy of the world. We need to be aligned with the other democracies, another 25 or more so that we can set the rules of the road instead of having china and others dictate outcomes because they are the only game in town. Haidi is that a no from president elect biden . Lots of questions as to whether we will see a return to multilateralism, multilateral trade agreements, also potentially the tpp. Tyler biden did not give a definitive answer. When pressed on it, he would refuse to engage with the question and say the deal was just made and the details are being worked out and he will not weigh in on it. In terms of your point about multilateralism, it is true he wants to rejoin the Paris Climate Accord and strengthened the u. S. Relationship and standing in nato and other world organizations. That was a big part of his campaign and expected to be a big part of his presidency, restoring america as a key partner with global economies and countries around the world. Haidi tyler pager there. Henry kissinger has warned the u. S. China catastrophe on the scale of world war i if the two sides do not quickly reach lines of communication. He made those comments at the Bloomberg New Economy Forum. Mr. Kissinger the differences andhe issue of human rights it is important for each side to the sensitivities of the other. And not to lead to a problem, but to alleviate it to a point where further progress is possible. One of the basic historic issues is that americans deal with Foreign Policy as a largely pragmatic issue over a series of specific problems. Chinese deal with Foreign Policy primarily as a view of historical evolution. So, when the american and chinese president s meet, they are not necessarily talking about the same subject. And we have to begin to understand the historical issues and the chinese have to understand that it is important not only to arrive at a destination, but to have some point in between that need to be dealt with. Do you think that there is a way in which people can learn from history . And do you think the chinese really understand context globally in the way america is used to . Mr. Kissinger the history of china is different from the history of america. And americans have had a history of relatively uninterrupted success. The chinese have had a very long history of repeated crises. America has been free of immediate dangers. Chinese have usually been surrounded by countries that have had designs on their community. It is necessary but each side learns enough about the basic use of the others principles and definition of the National Interest of the other to begin a dialogue. What we can learn from history is that people agree catastrophes can occur if societies slip into a conflict. On the basis of repeating these conflicts for a long time until suddenly it blows up. Which is how world war i started. The issue itself was no different from 10 others that had been dealt with in previous decades. But this time, the method of diplomacy that had been used then didnt work. We need an effort designed to avoid the risk. Of course, each side will defend its National Interest. This will be understood. And we should not turn this into, where can we conciliate china . The issue is can we achieve outcomes which both sides can coexist . Shery former u. S. Secretary of state Henry Kissinger speaking with our editorinchief at the Bloomberg New Economy Forum. We have another on the bloomberg. South korea will be raising their social distancing measures to 1. 5 level. This according to their news. They are raising the social distancing guidelines from level 1 to 1. 5. This will include fining people who dont wear masks, limiting seating at sports events, recommending working from home, and resuming Online School classes instead of offering partial offline classes. We just had the biggest gain in infections in about 11 weeks with more than 200 daily cases. The market opens in south korea in 20 minutes. We will be watching that. This is bloomberg. Shery seeing modest gains across asia. Lets turn to sophie for a check of the markets. Sophie aussie shares back online. Higher than half a percent, this after the worst outage for the exchange in four years. Which the regulator says they put the asx in breach of its market license. Ahead of the rbas meeting, the aussie dollar, steady above 73 while bonds are under pressure. Tracking the move lower on vaccine progress. Kiwi stocks continue to hit fresh highs. The kiwi dollar is trading near a 20 month high. That strength, seeing the trade minister telling us earlier the kiwi Dollar Strength is a concern. Checking on other currencies of note. We have been watching about 132 level amid optimism of brexit negotiations. Citigroup saying they are bullish sterling, with adding support for the currency. Check out the offshore yuan, trading at the strongest level since june 2018 with the market towards dollar, selling on the vaccine breakthroughs and Global Economic globalization which puts asian stocks to refresh record high on monday. Nikki futures pointing to further gains. S p also catching a bid. Putting up a chart on the terminal, given the recovery rate have seen in japanese stocks and the lows we saw in march, we have seen the ratio for the topics also improving. This after falling below value back in march for the First Time Since 2012. But when you take a look at it compared to other stocks, asian stocks, shares on the pb ratio looking fairly cheap, haidi. Haidi lets get a closer look at prospects for the japanese equity market. A Portfolio Manager. How much further upside do we see given the risk we see in the rally . And given the encouraging thirdquarter gdp numbers yesterday. Well, how much upside from here is hard to tell. Economies hopefully start opening up again going into next year, we expect that some parts of the market should do well in qualitych as High Industrial companies and highquality economically sensitive names in our portfolio. Haidi right. Can you tell us specifically some of the names were looking at . High quality industrial itss japan is known for manufacturing excellence. We have factory automation. Japan is still the dominant leader. Maker, they are number one in the world. What economically sensitive a jobies, recruit, advertising company. We also have exposure to environmentally friendly technologies like electric vehicle parts. We have a balanced portfolio. Shery we recently saw Warren Buffett buying stakes in Trading Companies in japan. What do you think of that move and what will the doing confidence for japanese markets . Think it was a Value Investment by mr. Buffett. Trading companies have unique history. Asy did transform themselves investment companies. They are much more exposed to global economies nowadays but they are trading at high single digit multiples. Believe that with the new vaccines being successful and the economy coming back on growth track, i think that is a smart investment. Shery what is the threshold for japanese yen strength when it comes to the attractiveness of the japanese markets . Right now, we are around 104, 105. To takell, we dont try a view on currency. Apan is always viewed as currency trade when theres a up. Off growth and yen goes stocks goes up, and goes down. That is becoming obsolete because the country has become a lot more currency resistant next to companies own efforts to diversify production activities and streamlining their operations. Thatnt really worry about for opera folio companies. Shery great views. Masa takeda, Portfolio Manager for the hennessey japan fund. Still to come, another sign that chinese consumers are moving online. Jd. Com posts better than expected sales even as overall Consumer Spending growth in china lacked. More on that next. This is bloomberg. Haidi jd. Com revenue better than expected as Online Shoppers continue to drive a recovery in chinas Consumer Spending. It comes on the heels of a strong single day performance by alibaba but it crackdown by beijing is looming. Stephen engle is on the line. How are things looking for jd . Stephen there is this retail recovery that was punctuated by alibabas big singles day shopping extravaganza. It shows that the migration, if you will come of the surge during the pandemic to Online Retail is ok, is doing all right. Basically, jd. Com is joining Smaller Companies in beating estimates. Billion, the5 estimate was for 175. 5 billion yuan. They modestly beat those expectations. What we are seeing is a modest recovery in chinas Consumer Spending with the bulk of those people shopping online. Anduoduo last week posted 89 surge in thirdquarter sales. Alibaba headed slowest sales growth ever thirdquarter. You mentioned to those regulatory issues as well. Outperformance coincides with this growing regulatory pressure on these tech giants in china. Beijing revealing those detailed deadlines to curb monopolistic practices and it really does raise questions about the existing Business Models of jd, alibaba, tencent and others. Ecommerce, according to those regulations we have seen, ecommerce practices and the algorithms they use are likely to be specifically targeted in these new regulations coming from beijing. Shery we also had a beat coming from baidu with their thirdquarter revenue coming above estimates. What do we know . Stephen the report card was similar to what weve been seeing. It beat forecasts with a 0. 4 , very modest rise in fourthquarter revenue. Fourthquarter revenue guidance in line with estimates. Profit also beat slightly. More interestingly from baidu is that announced it is jumping further into social media with its biggest foray into the fastgrowing area of digital video. They will be paying 3. 6 billion in cash for the livestreaming platform yy live, that is from joy, inc. You. 8 billion business with paying users. It shows the changing landscape. A lot of people are investing and going heavily where young people are spending their time on entertainment platform from the likes of bytedance, which of course is the owner of tiktok. Already, baidu has a netflix like platform but they are really morphing their platform to host a wide array of content. Really, the three headed monster of technology in china is alibaba, tencent, and then perhaps to a lesser degree, baidu which is reliant so much on search but they are trying to diversify that search platform into more of an entertainment, all onestop shop. Shery bloombergs chief asia correspondent stephen engle. A quick check of the latest business flash headlines. Another tech giant reports from china, saying huawei is to sell its smartphone unit to a Company Controlled by the state asset regulator in shenzhen. The article gives no financial details of the deal and comes one week after a Digital China said it had not reached any agreement to buy the operation. There has been reports that huawei was trying to sell the operation for about 15 billion. Chinese ridehailer and delivery startup didi says it plans to rollout an electric vehicle within months. The d1 has been developed with the e. V. Maker with ridehailing in mind and will ship to its leasing partners in cities across china. Didi has already defeated uber in china and has one million evs on its books. Berkshire hathaway is its biggest shareholder. A top chinese carmaker with close links to the west and the leading have announced debt defaults, highlighting the glorying the growing distress among state linked firms on the mainland. Brilliant auto is a partner of bmw and says it cannot repay almost 1 billion of obligation. The chip producer also says it cannot meet 200 million offshore bond after talks with creditors. Oncent stored on lake trade news this talk. Is the joy the s p 500 the 17yearold carmaker will join the index after months of speculation and the temporary setback when it failed to make the grade in september. The anticipation has driven a near fivefold rally, making test of the most valuable company ever to be added to the gauge. The row between taylors swift and a music manager with her selling the back catalog of our verse six albums valued at 300 million. Brown acquired the collection last year as part of a purchase of nashvillebased record label big machine. The singer says she has been trying to reacquire the collection herself. Haidi lets get big check of asian markets at the moment. Australia resuming trading after the longest asx outage in about a decade. Seeing some solid gains. Still the sense of caution playing out. 6 10 of 1 higher as we are a half hour away from the release of our begin minutes to get a better gauge on how military policy is getting. We are seeing this vaccine driven rally continued. Nikki futures up by 4 10 of 1 . We are also seeing potentially a pop at the open when it comes to trading in the kospi. New zealand looking pretty flat at the moment. The market still trading at a record high. Up next, we hear from key voices from the Bloomberg New Economy Forum. We will be joining to discuss the future of trade at the top of the hour. Copresident stercard will talk about the pandemic impact. This is bloomberg. 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. I hope my insurance pays for it. Can you tell me how much this will be . [cashier] 67. Sorry. Wait, have you heard about goodrx . Goodrx finds free coupons to help you save up to 80 on your prescriptions. Wow, i had no idea. [announcer] goodrx, stop paying too much for your prescriptions. Shery welcome to daybreak asia , from bloomberg World Headquarters in new york. I am shery ahn. Haidi i am Haidi Stroud Watts in sydney. Asias major markets have just opened for trade. U. S. Stocks hit new highs on modernitys vaccine results. Modernas vaccine results. By do is pay more than 3 billion for livestreaming operations in china, the biggest foray into digital video. The Bloomberg News Economy Forum is underway. Global leaders discussing the economy and impact of covid19. We will hear from the singapore pm. Shery day two of the Bloomberg News Economy Forum just beginning. You are seeing the former chinese vice premier giving welcoming remarks. We will hear some big voices. The former u. K. Prime minister, tony blair, and former u. S. President though clinton. For now, lets get straight to the market action. Japan and south korea coming online. Sophie kamaruddin. Sophie japanese stocks gaining ground. The nikkei above 26,000 while the yen is slightly firmer this morning while dollar weakness is continuing in the asian session. The dollaryen will see moderate downward pressure. That whileutioning the Moderna Vaccine development is positive, the pickup in virus cases is serious and the economic damage could be no different from having lockdowns in cities even if they avoid them, and with that, lets turn to south korea. Reactiontching for that social distancing curves have been tightened. We are seeing a pickup for the kospi. Its under pressure and the korean won is gaining ground but it could look to test resistance at 1100 as authorities flagged concerns around moves to the currency. Morgan stanley is so bullish. Board. Witch the we are seeing bonds under pressure from new zealand and australia and aussie stocks gaining ground after the destruction we saw on monday. Energy shares tracking the move higher in oil while the aussie dollar is holding above 73 ahead of the rba Meeting Minutes later today and we are keeping an eye on the kiwi dollar, which is trading at a march high. The new support level at 68 in the wake of its rally. Pulling up a chart on the terminal, missed building expectations for economic normalization across the world, we are seeing u. S. Stocks start to lag global peers after hitting a relative peak as you concealment her right here. U. S. Shares, as a rotation into cheaper value stocks, from expansive growth, will Favor International equities. Haidi lets get to camino mitchell with the first word headlines. Karina global coronavirus cases are approaching 55 million. The seven day average of reported cases in the u. S. Is rising in all 50 states. California putting nine out of 10 people into restrict the social curbs. Michigan is imposing a threeweek lockdown. Confirmed cases in france are about to hit the 2 million mark with the Health Minister saying new lockdowns are working. The Trump Campaign is withdrawing a central part of its lawsuit against Election Results in pennsylvania, abandoning claims that 700,000 mailin ballots get thrown out because observers were kept away. Laterse will continue tuesday. Joe biden won the state. Fora is repeating its calls Global Solidarity on rising protectionism as it adjusts to the idea in washington. The Vice President told the Bloomberg News Economy Forum that they should reject unilateralism and build an open system that works for all. Willomments imply beijing reject President Trumps America First policies even under a new administration. Countries must rise above that. Batch mentality. We should build an open World Economy that works for all. Safeguard the multilateral trading system for reject unilateralism and protectionism. Karina 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. Haidi we are taking you now to the Bloomberg News Economy Forum. John micklethwait is speaking to singapores Prime Minister. The technological innovation. We will open up an even broader space for economic development. As president xi jinping observed, the covid19 pandemic goes through profound changes never seen in a century yet peace and development remain the underlying trend for the time. The Current Situation might be complex and challenging. But i am confident that it countries stand and act together, multilateralism will keep moving forward. Humanity will prevail over covid19 and our world will be a better place. Thank you. Greetings. I am scarlet fu of Bloomberg Television and im joining you live from bloomberg headquarters in new york city. Welcome to the continuation of the 2020 Bloomberg News Economy Forum. Before we get the program started, i want to mention a few housekeeping items. The u. S. And china in the 21st century, you will have the opportunity to respond to it question. Sure to use the buttons below on your screen to submit your opinions and submit questions for the moderator you would like to pose to the panelists. For those watching around the world on our livestream, thank you for joining us. We encourage you to share your thoughts and participate on economy. Sing the ournew our discussion on trade and finance, please welcome the founder of the Bloomberg New Economy Forum, founder of bloomberg lp, bloomberg philanthropys, and threetime mayor of new york city, michael r. Bloomberg. Michael hello, everyone. The next speaker is the leader of one of the worlds most Innovative Companies and center of commerce and trade. They have been valuable partners for the new Economy Forum, having hosted the first forum in 2018. Has done has saved lives and set an example for other countries. He has also been a strong leader on many of the issues bloomberg philanthropys is focused on safety,roving road reducing tobacco deaths, and fighting Climate Change. We are honored to have him with us today. Please join me in welcoming Prime Minister lee of singapore. Prime minister, thank you for talking to bloomberg and the new Economy Forum. Last time we spoke, you talked eloquently about singapores role in asia and about the rising power of china and some of the difficulties of being an ally of america in this particular region. I wondered, from all those perspectives, what should president elect joe biden, assuming he has indeed won, what should he do in terms of a policy towards the region and towards china in particular . His First Priority will be domestic. He has many urgent things to deal with, starting with covid. Ofs a very important part the world for america and china particularly. I hope you will be able to focus his mind on developing a framework for an overall constructive relationship with china. Where you one will be competing but where you dont want to collide and you will try very hard to work to develop the areas of common interest and constrain the areas of disagreement. Framework, you have security, Climate Change, nonproliferation, all of the many issues which the two biggest powers in the world have to focus on. Be oft those, they will concern to all the rest of us in asia, watching carefully to see how things will develop because the last four years have been a tumultuous ride. Do you think trump has left america do you think he has done permanent damage or changed the way america is viewed in the region . Lee i think there will be some longterm impact and perspectives on how america it did notf because start with trump. Over the last four years, there has been a clear shift. When you talk about putting America First and making America Great again, its a more narrow definition of where americas has hitherto than been the way administrations have seen things. They have seen america as having a broad interest in the stability of the region and the wellbeing of its partners and tending of its alliances with allies. In plastering an overall environment where many countries can prosper in an orderly way and america is part of that scheme. It subjects itself to the same rules and discipline is a strong word. Complyings itself as with an order which is in the interest of more than itself. It will take some time i think for america to come back to such a position and for others to be convinced that it taking such a position. It may never come back all the way. In terms of its relations with china, i cannot speak for the whole administration but i think there are some elements in the administration who definitely did want that. It should be difficult to reverse by the subsequent administration and which will set the tone for the relationship for a long time to come. Even punitive tariffs, whatever their merit, no one can say those were the wrong things to do. Next thing you do, you have to deal with it. You are dealing from a new starting point. There are many others which are even more sharp. On theogy, i think definition of how you see the other party, whether it is a competitor, challenger. Whether it is a mortal enemy. These have consequences. Do you think language has consequences . When you talk about America First, some people have looked at what happened with trump and by talking always the language of America First instead of singing the traditional american song of freedom and liberty and openness, do you think that really made a difference . Lee i think many of them would say yes. If you ask asians. Must make our we calculations on that basis. Peoplene of the things talked about biden doing is having a coalition of democracies that would bring in people like yourself, indonesia, japan, south korea. Is that part of the framework that you could imagine working and would that be lee we all want to Work Together with the u. S. , we all want to Work Together with other vibrant economies. I think not very many countries basically ao join coalition against those who have been excluded. Chief of whom would be china. Not just ingapore, asia, but even in europe, there will be countries who want to do business with china. For example, europe is trying to conclude an Investment Agreement with china. Its quite understandable. I think its better. You want everybody in the discussion, trying to work out adjustments to the world order. In that process, you are going to have people form alliances. They will cooperate with one another. They will find common cause. A line of and make cold war style, i dont think thats on the cards. John things that exclude people. Pushing in on trade, which is a big focus here, to what extent do you regard tpp, do you regard that as dead . Is that gonna or do you think that is possible to revive . Lee it is very much alive. One sellout. Now, there are 11. Credit ofthe great mr. Abe, Prime Minister of japan, that he brought everybody back on and we concluded the tpp. America is not part of it. We hope that one day america will come back to it but i dont think realistically that will happen anytime soon. The stars are not aligned. Thinkmocrats i dont the base is keen on this. The obama ad meditation was keen on this. But whenully supported she became Hillary Clinton the candidate, she had to repudiate it. Its the reality of american politics. I still think it makes sense for the u. S. , but has to make domestic political sense as well and that will take time and a of thent alignment Economic Situation as well as the political configuration in the u. S. John on that particular point, do you think there is a possibility that biden generally could end up being somewhat tougher in terms of everyday things than trump was to the extent that biden is more likely to complain with china about human rights, and you have also got this, as you said, this side of the Democratic Party with things like labor rights, environmental rights, matter and honestly . Might be enormously . Might be more predictable . Lee its possible. We know xi jinping very well because we spent many hours together and i think he has visited china. They have engaged one another. I think that personal engagement is important, but equally important is how each country sees the other and the intentions of the other and whether they see the possibility of being able to Work Together to mitigate the inevitable contradictions which are going to arise. It is not always easy but it is and as has historically happened with many administrations, once you become the administration, you have to deal with realities and pivot. Bill clinton did that. Hes is the one who talked about bringing dictators from baghdad to beijing. He did business with china. Sorry . I hope Something Like that can happen with the next administration but i think it is harder because the consensus to see china as a strategic threat is almost becoming received wisdom and unquestionable in the u. S. , in washington, so it will be very difficult for any administration, whether it is biden or trump, to disregard that and just proceed as if the last few years have not taken place. John what about on the other side . You are one of the people who understands and knows china best. Do you think the chinese attitude, we talked a lot about the american attitude, but do you think the chinese are prepared to do bargains about this . That takes two to tango. Lee yes, it does. This is a bilateral relationship. I think they know they are not ready for a collision. John how important is what is happening in hong kong, seeing the hurt Democratic People resign . There would be mostly a clampdown on freedoms in hong kong. We watch carefully and with some concern what is happening in hong kong and responses in hong kong. I think something that was going to happen was very much on the cards and would not have been avoided because the demonstrations and expressions of defiance could not have carried on indefinitely. Of onely not the end country, two systems. In 24 7. , but the question was how it , the chineseed off government, i think they have settled on this formulation where they have made the legislation and the administration of hong kong, they made the legislation in china, and pcc, peoples could be and we it done in a way which would deal with the problem but not shake confidence and maintain the hong kong system so that it can be valuable to china and can be part of the prosperity in the region, but i think there is a lot of concern in hong kong, and you can see the way actions have reactions and further anxieties arise. You can settle down to a new normal. It will not go back the way it was, but something which is sustainable and which will enable the hong kong people to lift stably and have the economy working and have a greater and access todoms , itrmation and expression is on the others of one country, two systems. John going back to trade, theres also this. How do you regard that remotely as a comparative to tpp . Tpp waslways point out designed to be how should we look at this in terms of regional trade . It is a lee different animal for a different purpose. The tpp had a relatively small number of economies, 12, maybe 11. It went for a very deep requiring substantial commitments from these and covered areas which are difficult to cover like intellectual property and i think there were even discussions on Exchange Rates and things like that. It is a different configuration. It is asian. It includes all of the major asian economies except india which has decided to not be part of the rupee. Covers one third of the Global Corporation and one third of the world gdp, but it does not go as deep. Nevertheless, it is a significant step towards reducing trade barriers and facilitating trade between these economies and a significant statement that in asia, whatever happens in the broader world, we would like to promote regional integration and we do believe in a model of cooperation and winwin trade rather than going it alone. Times, itsubled worth quite a lot. Numbers, look at the the crude measure of how well countries have been doing covering covid. You have america and britain, where i am at the moment, over 700 deaths for every million closeru have the to five. China claims the number of three. Japan, south korea, the countries of asia have performed unbelievably better. 20 to 30 times better than the countries of the west. How do you explain that . There have been some internal critics of what you have done in singapore, but by any measure, you have done rather better than western countries. What has been the reason Asian Countries have done so well . Lee i would hesitate to declare victory now because the fight is far from over but what i think the Asian Countries have succeeded in doing is to get their populations to comply with the measures which are necessary or cooperate Wearing Masks distancing themselves. Successwith greater than the europeans or the americans, after some time, they are tired of being locked down and there is pushback. You do that, there are consequences for public health. We have been lucky because we have not had a huge number of cases in the community. We have an elderly population. There have been many communities. I think we wouldve had a large number of casualties and deaths, too. We have had quite a number of cases but any of them, the vast majority of them, have been amongst Migrant Workers in dormitories where we were able to keep it confined and at the same time, to treat the Migrant Workers properly and give them the medical attention they needed and keep the fatality rates amongst them to very low. It helps that they were young, and therefore, many of them had the disease in a mild form, but we worked very hard to make sure that we kept the Migrant Workers as well as the singapore populations safe. So far, we have done that. Now, our challenge is how do i open up my doors so i can have flows and Business Travel to the rest of the world and manage the cases which are bound to come in and which are going to pop up amongst my population . If you are Something Like china, youran decide to close all entry points practically and be in splendid isolation for quite some time without much difficulty. Not forever, but for quite a long time. For singapore, thats going to be very tough. John thank you. Lee thank you very much. Shery you have been listening to singapores Prime Minister speaking with bloombergs editor in chief, john nichols wait, for the new economy form. Andng up next, tony blair bill clinton on the post pandemic world. We will bring you some of that conversation shortly, but a reminder that terminal subscribers can see all at mliv. Heres a look at markets across asia. We are seeing the nikkei continuing to rise at the highest level. The japanese yen Holding Steady but seeing a little bit of strength against the u. S. Dollar. The kospi gaining for a third consecutive session. We are seeing energy and utilities leading the gains. The asx 200 back from the longest outage in a decade, getting. 3 . Energy leading gains. He restocks under a little bit of pressure, after hitting a record high and gaining for 11 straight sessions. Lets go to Mark Cranfield for a check and more deep insight into the markets. What are we seeing in terms of how the markets are moving when it comes to different sectors . Here in the u. S. On wall street, we saw gains but it was the rotation play that really made headlines back into those cyclicals, into value stocks, given this vaccine optimism. This probably still has a bit further to run considering tech dominated for such a long time this year, and now, people are getting more optimistic that other parts of the economy will benefit as these vaccines become available, so now that we have a second vaccine that is doing extremely well, there could be further vaccine news to come in the days ahead because there are several other situations where they are testing and the results will become known in the weeks ahead so thats what people are looking ahead to, the fact that a wider impact on the economy, more parts of the country, which is lagging behind, can come forward now and companies can benefit that so thats partly why you are seeing this big rotation. Overall, the mood is pretty good. In asia today, we were seeing japan slightly up in korea is also slightly higher, but there is still probably concerns about geopolitics. There has been a story running that donald trump did try to get the approval to do something against iran in the final days of his presidency so that is switching back the s p a little bit first in this morning, but it is only a modest reversal so far. Peoplerall intention is see things panning out a little better than they did a few weeks ago. You have the fed to come, which have been giving hints that they are ready to do more qe so it will be supportive for equity markets as well. We are seeing a sigh the vaccine, the bed might be worth two more given stimulus does not seem forthcoming. Does that mean that coupled with the Vaccine Development news that we will see emergingmarket asset . One of the consequences of that will be a weaker dollar. Bloomberg has a story today saying that citigroup see the dollar declining 20 next year even though it has fallen a hair bit. They see a much bigger loss as people react to more stable economies, better upside for growth outside of not only in asia but in other parts of the world which have been lagging behind. That will culminate in a move out of the u. S. Dollar and more into emergingmarket, both in asia, latin america, eastern europe, so the upside for those could be quite substantial if they catch up with some of the gains in markets this year, so certainly, a weaker dollar would you threw two several Asset Classes led by emerging markets. 20 is a very substantial move and Fund Managers would see that as being a good reason to participate. Talking about gains, tesla really surging as we heard they will be joining the s p 500, finally making the cut when it comes to really joining the big boys on the exchange. We probably have to wait for the full reaction once American Trading gets going on tuesday, but certainly, it is a start which has been much talked about. We have seen dramatic moves already in tesla. It has outperformed many companies, so its bound to have a substantial impact. There could be very heavy trading in the stock which would fill over to the s p but we will probably have to wait until a full day of trading on tuesday before we see how that really plays out. Shery and we have breaking news at the moment. We are getting the singapore nonoil domestic export numbers. A contraction of 3. 1 for the month of october. This is really missing expectations which was a growth of more than 5 , and its quite a slowdown from gross up almost 6 in the previous months. Those are the year on year numbers. When it comes to the month on month seasonally adjusted numbers, there is a contraction a 5. 3 , which is betterthanexpected easing of that plunge from the previous month but again missing expectations. A contraction of. 4 . We have seen some resilience in the numbers coming from singapore, but it has been about that pentup demand and potentially after that is satisfied, we could have a lu ll in export growth and that is what we are seeing right now. Month on month contracting more than 5 , haidi. Haidi we are getting the rba Meeting Minutes. They cut rates to a record low. 1 . Also announcing that 100 billion Australian Dollar program to buy longer tenure into bonds. The rba saying unemployment is expected to stay high. They have lowered rates as low as it makes sense to do so right now, but saying the board is prepared to do more if necessary, saying the focus will be on the Government Bond buying program. And in terms of monetary market risks as well. Getting a reaction in terms of what we are seeing in the aussie dollar, we heard from the reserve bank of an earlier this week, saying he sees job creation as being a far bigger challenge than inflation so what do you see as implications for the aussie, which continue to be on a tear as well as australian bonds . Helped given has that the u. S. Dollar might get weaker. Banking away to be slightly from the idea of negative rates. They really have a last case resort if things really deteriorated a lot so they are willing to keep yields extremely low. They increased their bond buying into other sectors of the bond curve as well so they are very active in making sure yields stay low. They are more or less guaranteed that yields will stay low for a couple of years and that is really reassuring for the equity market in particular in australia, so all of that is pretty much priced in now to the Australian Dollar and other assets. It is really not what happens to the u. S. Dollar. If it does have another period of weakness, that will help the aussie off the back of that. Haidi Mark Cranfield. You can follow more on this story and all the days trading action on our markets live blog. You can get that rundown and there is commentary and analysis from bloombergs expert editors so you can get exactly what is affecting your investments at any given time. Lets get back to the Bloomberg News Economy Forum which is taking place virtually underway at the moment is a conversation with tony blair and bill clinton. Lets listen. Is our specificity friend, it is something specific that makes sense, that people can see benefits from, they will support globalization and cooperation. And if the specifics are things they find threatening, they will not. , but if they dont no one way or the other and it sounds like, you know, lets cooperate, then it is easy to fill the gap with powerful they are more in that context. I think it is a great responsibility for the community to develop a Global Public Health Network and sensible responses. I think its quite possible, depending on how the vaccines work out that at least in the interim, this will be the worst viable threat we faced in our lifetime, hiv, that is, we will develop an antiretroviral. Thats what the antibodies are. That President Trump received. Effect, it has a recovery. This is something you can get over but it stays with you. It hastens your recovery, keeps you off of ventilators and away from deaths door. Once we have that, you can make that widely available and that will make a huge difference. Effects. Educe the side clear that you need to build the capacity to cooperate much more strongly for the future around Global Health preparedness, what is your what is your take . G8 the g20d was just coming into being at the end of my time. You have this g7 and the problem is they u. N. Systems tend to be quite difficult to get to consensus. There is a lot of bureaucracy around them for obvious reasons. It always seems to me if you are going to look at where is the opportunity to construct a better global architecture . You can start with the g7 or the g20. You come to the g20 which is g20 isly much more much more representative of the way the world is today. But how are we going to get the cooperation going that we need when obviously, its not just americas relationship with china but the wests relationship with china that is difficult. I think that question will be able to be answered a little bit better when we see what happens after the change of government in the united states, how they decide to deal with china. Decide to manage our clear disagreements over hong kong and the camps for the uyghurs and the desperate need to Work Together for Global Development to fight Climate Change, to deal with the covid19. But i think once we have a sense believe that i whatever the appropriate way of dealing with it is, you need an organized effort that begins with the end in mind. I thought after i left the white , i thought we had a pretty good deal when you could get people to agree with the end and you could give them flexibility on how to get to the end and it was easier to help people who were clearly committed to it. With the then secretarygeneral on the we gotth of the tsunami, all kinds of help from all kinds butlaces in different ways we managed respect for the sovereignty of all the countries and they could channel it in different ways when we got an enormous amount done. It was done in a way that permitted private sector participation. We can do this if there is a sense that the major forces at play in the world can agree on the end in mind. Is for theit new administration in the u. S. , i think the big challenge with china is to get what i would call the strategic framework for dealing with china rather than a series of ad hoc reactions to whatever the chinese might be doing. Then i think you have just got two distinct between two things. Also billy blair and clinton speaking at the Bloomberg News economy form. Bloomberg new economy form. Narendra modi, christine lagarde, and bridgewaters ray dalio, among many others. Catch those conversations online, on the terminal, and via social channels on twitter and facebook. Staying with the pandemic, moderna says preliminary analysis of a late stage Clinical Trial shows a vaccine is nearly 95 effective at preventing covid19 and it can be stored at refrigerator temperatures for 30 days, which the ceo because a game changer. Our guest was speaking to guy johnson and alix steel. We have been working on vaccines for more than five years. Vaccine we have been running a clinical on. It is the first time that they are doing the vaccine so over the years, we invested heavily in ryans, and process development, and it allows us to have much better storage conditions than what we used to have five years ago. This is really important because it will have a huge impact on distribution. How much an effect of an effect will the stability at a higher temperature have in everyones ability to get hold of this vaccine . Its a huge impact. The big distribution centers. And those are able to handle product because we are already approved by the emea in europe, the u. K. , and the u. S. , at 20 celsius. What is important with todays news is we can have a vaccine stored in a regular fridge at two celsius to eight celsius. Every pharmacy, hospital, has that capability so we think its a very important game changer. The other piece to keep in mind is our vaccine does not require dilution. The other vaccine you mentioned requires dilution at the site. It is an extra step. What we have to do to get the world back to normal is a massive Vaccination Campaign that has never really happened before, and so, every time we do these types of things, it will be an issue. Between the fridge condition storage and the fact that we do not require any dilution on for nurseswill be and doctors to provide the vaccine quickly to those who want it. Conversationsd with the Incoming Biden Administration about how to mobilize . Operation warp speed has been working in the u. S. Very closely with the cdc for a long time. We are in daily discussions with them. What we are going to do, as soon as we got approval by the u. S. Fda is to ship the product. Is very government active in the seasonal flu process. Toget the vaccines out hospitals and pharmacies. All the big pharmacy chains in the u. S. Have signed up to get thevaccine to provide administration in the pharmacies. This will be available in hospitals, in some rural areas, and gp offices. Theres a lot of work going on. This is the government taking care of that. The military is being involved to help with logistics. One of the key questions as we all watch the case count climbing around the world is what impact will this have on transmission . What effect will this have on my ability, if i come into contact or debt the virus, to transmit it to others . This, we dont know yet. What we know from todays data is you will have a 94 chance to disease. Ovid thats obviously a big deal. Haidi that was the amount during the the mode turn a the moderna ceo. We have heard from tony blair as well as the former u. S. President , bill clinton, in conversation during a panel in the new Economy Forum. Lets listen back in. Thoughtf the things i all the way through this pandemic is if you think back to the time where you and i were in power, when president bush was office, wed i was in were in a constant dialogue on what we could do together, how we handle it, what was the right strategy, you know, and there would have been a sense of america and the european side working together. Bill i agree with that. I think look, i dont want to say too much right now, because over on our side of the atlantic, the current government in america is blocking the normal transition, so it has slowed down the ability of the president elect and his team, basically, to announce a whole slew of projects because they need to get in there and see what facts they need to see and do basic things, and i think that the less americans say about all this, the better, until the new president and his team have a chance first be announced and then lay out their policy. But if you look at the life that as biden lived, you know, the chairman of the Foreign Relations committee, as the chairman of other committees, Judiciary Committee in congress, as someone who was deeply involved and supportive of the Peace Process in Northern Ireland, just generally, it is clear that hes going to be more oriented toward working with and through a lot of these International Organizations and that he believes in nato and he believes in strengthening all of this. I also think that all americans now have shown, and the president elect has shown, both n appreciation for our security responsibilities around the world and our reluctance to get our soldiers involved again endlessts conflicts conflicts which will never produce a satisfactory result from our point of view. On the other hand, we cannot walk away from immediate human suffering. We have a chance to alleviate it. There will still be a lot of hard decisions to make of the kind that we had to face in bosnia and kosovo and lots of other places. These hard decisions will not go away but i think the less we say right now, the better because we want to leave them as much Maneuvering Room as possible. Tony yes. What it is like to be secondguessed. [laughter] tony i do. I know. You told me about the Peace Process. The picture behind me is actually a picture from a mural in Northern Ireland which expresses the differences between the two sides. Bys the process which the way. I will never forget, in the middle of that peace negotiation for the good friday agreement, when i literally lost all track of time. I think it was 3 30 in the morning, washington, d. C. Time, and you were pretty chirpy, actually. I explained the situation and bill we had great partners. Two of them we have lost lately. Thats another important thing i would say. This is something you can do when you have been out a while. And we lost hume martin mcginnis. Then, in the middle east, one of our partners recently died because of covid. And the thing i want to say about that is that time passes quickly and when you are in office and you are thrilled with the challenge of each new day and filled with the challenge of each new day, if you are not careful, it will pass even more quickly, and i think that, you know, i think it is a good thing that joe biden shery you have been listening to bill clinton and tony blair. Terminal users can continue watching that on live. Lets turn to the state of the economy. Theercards ceo says company is seeing Consumer Spending recovering despite a resurgence in covid19 cases. From the Bloomberg New economy form, joining us now is the mastercard copresident for asiapacific. Thank you so much for joining us today. Lets discuss a little bit what is happening right now. When i talk about Consumer Spending recovery, how much of that is coming actually from asia given that they are coming out of the pandemic faster . Thank you so much. It is great to be here. Arenswer your question, we seeing a great deal of growth now coming out of asia, just to give you a sense, based on the recent studies, countries like taiwan are actually seeing retail sales growth going back to precovid levels. Taiwan is at 5. 8 . Australia is at 5. 2 . Korea is at 3. 2 . All those numbers actually bowed really well for the bode really well for the economic element in this region. This is highly correlated with our governments ability to keep the pandemic under control. Peoples perception of the risk matters in the economic decisions and in their activities and behavior. Shery domestic economies might be recovering but we have yet to see global travel, given how widespread this pandemic has become, what right become, right . When can we expect those to resume . Ling yes, we are seeing really strong domestic recovery. It is probably still a little bit low right now because borders remain closed. I think governments need to feel comfortable once they have their therapeutics. The recent announcements on the two vaccines are very welcoming. Its hard for me to predict the future but my sense is sometime next year, hopefully midyear rather than the end of the year, we will see some resumption of crossborder travel. The singapore government is opening those Business Travel bubbles with countries such as china, such as japan, and those are the positive steps towards opening borders and resuming crossborder travel. Union. Set up that im wondering how the collaboration is going in china because it has cyclically been quite a difficult market. What are your aspirations for the chinese part of the business . Ling we remain very committed to china. We made huge investments in china. We have a strong business in china today. We have actually received our approval from the Chinese Government to operate domestically in february of this year. We are working really hard towards getting our Technology Ready and working towards getting our final approval. My expectation is hopefully next year, we will be operational in china. Find thew do you Regulatory Environment operating in china . Highprofilesome regulatory actions being taken in the simtech area with the likes of ant financial having to push back their ipo. Is that level of uncertainty something you deal with on a daytoday faces . Basis . Ling in every country we operate, we need to comply with local regulations. There is no choice. That is what we do. We have to comply with local regulations and laws. In any market, china included, where we operate, what does a company look for . Predictability in policies and regulations, a level playing field. Those are the same things we look for in china and we will continue to engage with the Chinese Government on these fronts. One of the things i do know, that as we talk to them, we need to figure out a mutual benefit, for the country and for the company, and i think we can get there. Much ayou are very latecomer when it comes to the chinese payment scheme, given you were just allowed access to that market, so how are you planning to compete with those local giants that already dominate the market . Ling that is a great question. In ave always operated very competitive environment, even outside china. I think competition is a good thing. Keep all of us on our toes, keeps the level playing field, keeps to create more innovations, so therefore, in china, first thing i would say size is tremendous and electronic claimants payments still have room to grow. Chinas middle class will continue to grow and car penetration will continue to grow. Theres two things we do when we go into any market. Those are the formulas for success. One is innovation. You have to continue to come up with better solutions, better products. Thats number one. The second one is partnership. We dont do things on our own. We continue to work with our partners in china, including other banks, including the digital wallets. How much weakness will there be a class asia until Regional Travel at least gets off the ground . Ling im sorry, the question is how much weakness . Haidi how much weakness do you anticipate when it comes to Consumer Spending across the region before we get a resumption of Regional Travel . Weg yes, as i said, actually believe most of the country is probably already in what we define as the normalization stage or near normalization stage. I think the only three countries that probably are still somewhat doing their best to try to get out of this situation, things are not completely out of control. Philippines,a, the and indonesia. In general, i feel pretty optimistic. Domestic recovery is back to precovid levels for most economies, especially economies that are large for this world, including singapore, including australia, korea, taiwan. Bitink you see a little still. Going into next year, domestic recovery will do very well for all of us. The issue remains on trade, crossborder travel, and with more therapeutics, with stronger vaccines. People will feel better, safer to venture out, and the governments will feel safer in terms of opening borders. I think the growth will come back to this region. Haidi it all comes down to a vaccine. Ling hai, thank you for speaking to us as part of the Bloomberg New Economy Forum. We have heard from tony blair ad bill clinton in wideranging conversation that covers some of the biggest challenging questions. They have been talking about the prospects for a vaccine and also talking about the big challenge of combating Climate Change as well. We have also been hearing bill clinton saying he thinks a Biden Administration will be more oriented towards multilateralism and that the new Administration Needs a chance to articulate its approach. Both of those former leaders also calling for a detente between beijing and washington. Dont forget, the Bloomberg New Economy Forum is all weak online, on the terminal, on twitter, as well as facebook. This is bloomberg. In shanghai0 a. M. And beijing. Im tom mackenzie. Down to thecap you start of the trading day. Story, the brakes on the global rally. Maduras vaccine results. Tom
comparemela.com © 2020. All Rights Reserved.