Transcripts For BLOOMBERG Bloomberg Markets Asia 20240711

1 10 of 1 . Minor gains for the australian and china markets for the shanghai composite. Situation with regards to the equity markets, what about some of the other Asset Classes and play . We can have a look at those. Take a look at the oil prices, retreating at the moment. You need currently, what, 41 essentially for a barrel of wti, 41. 09, moving to the downside. Stockpile to the upside. Gold not much of a haven, dollar index moving to the upside, the dollaryen currently stronger. It has been moving quite rapidly to the upside. . 11 currently for one greenback. The sec is pushing ahead with a plan that could see chinese come these kicked off of u. S. Exchanges. The intent to cap crackdown on companies that dont comply with rules that require an audit. That could hurt big names like alibaba and baidu. Tom, it looks like the sec is in a hurry. What is it proposing . Tom absolutely. The since we are getting as they are stepping up their preparations for this new Legal Framework that again would force Chinese Companies listed in the u. S. To delist if they failed to comply with u. S. Audit laws. The sense is they want to get something in place before the Biden Administration takes over, even if the final setting of rules and standards will come under a eyed Administration Simply because of the timeline. We are getting to the point where by december, the new rules and proposals should be out for public consultation. The key concern is, and this has been rumbling in the u. S. For some years, is china simply does not allow checking or investigation or inspection of the audit of its Companies Listed in the u. S. China says thats because of confidentiality reasons and the u. S. Assets chinese to play by the rules. Are building new rules and regulations. You could be looking at these rules in place, fixed, by january of next year. In terms of when they are implemented, it might not be until 2022. A key catalyst behind why they are moving quickly, one is the change in administration and the other is geopolitics. Simply the lack of progress in terms of relations between the two sides. Scandal accounting around a chinese coffee chain, which is listed in the u. S. And had a major scandal earlier this year. Rishaad you know, weve got heightened partisanship at the moment there in congress. But china actually is one of the topics where there is a degree of bipartisanship. Both sides are china bashing at the moment and there will be Practical Implications for Chinese Companies listed in the u. S. One about all of that . Tom yeah, thats why it feels like at least when it comes to the setting of the rules and the framework, things are coming to a head. Notn, even if the rules are implemented and you wont see delisting necessarily until 2022, because you have the sec pushing in the same direction as congress, who have passed their own proposals and laws around this. It has yet to be signed into law but there is bipartisan agreement china needs to play by the rules in terms of auditing of Companies Listed in the u. S. Youve seen a number of Companies Like alibaba and jd. Com setting up secondary listings we have focused on. The flipside is you still have increasing exposure from u. S. Investors to Chinese Companies, about 150 listed Chinese Companies in the u. S. , market cap of 1. 2 trillion u. S. Dollars. Two of the best performing ipos this years have been chinese come is listed in the u. S. Timingy be betting on and terms of the implementation of the rules and they may also be betting a Biden Administrations often changes to the regulatory framework. Nonetheless, as weve touched on, it seems like forces are relying to push this issue closer to the fore. Haslinda Tom Mackenzie in beijing. Lets get the first word headlines for you. China being urged to set Economic Growth tagger its targets of 5 annually, down slightly from the 6 goal in the latest fiveyear plan. A social scientist says the figure may fluctuate because of coronavirus but 5 is a more realistic target. President xi aims to double the size of the economy by 2035. Japan is sending mixed trade messages with exports beating forecast in october, but imports missing expectations. Declines in outbound shipments narrowed for a fifth month despite searching virus numbers in key markets. The value of exports fell. 2 from a year earlier, improving from a 5 slide in september. Analysts expected a 4. 5 fall. The governor of the reserve bank of australia says the nations economy is on the road back. But the recovery is uneven. He is urging businesses to take risks and the government needs to set a fiscal environment for that to happen. He said he has the tools to curb problems if necessary. A nominee to the fed board has been blocked. Covid19 exposure forced to republicans into quarantine, leaving republican shorts. Mcconnell switched his vote to know when the outcome became clear. They may reconsider sheltons nomination later this week. That was the first word news be it news. Rishaad still ahead, we speak with the aipac secretary about negotiations. Dont miss that interview later this hour. Next, the future of u. S. China relations under a Biden Administration. Exclusively that with our guest. This is bloomberg. You are back with Bloomberg Markets. President elect joe biden says he will work to rebuild u. S. Ties damaged during Donald Trumps presidency. His message to the world is that america is back. Lets get more from our next guest. He is from the center for china and globalization. Hes also an advisor to the Chinese Government and is a bloomberg contributor. Thank you for joining us. What in particular is beijing looking for out of a Biden Administration . Are they likely to get it . Are you likely to see a change in style rather than substance . What are they prepared for . Henry i think the president elect is going to reflect a new style, absolutely. Has had a lot of experience. He has many years been a senator and also in the obama admin attrition. He is meant to china many times and has received president xi many times. Together, eight weeks the world leader who has spent the most time with president xi. Biden said in his campaign that he would fight back, make it a priority, and they can collaborate on vaccines. Saiddentelect biden also he would restore the paris climate accord, china Just Announced they will be Carbon Neutral by 2060. Again, other areas to talk about. And again, President Biden has been saying he will rejoin the wto and come back. He could join the ppp. There are many avenues president elect biden and donna have and china have a. Have. China rishaad much has been made of the multilateral approach rather than the unilateral approach out of washington. Is that something you see as well . Henry yes, absolutely. The u. S. Could be more pragmatic. Also, American Business has been suffering so much because of the trade war pit he will the trade war. He will reassert his leadership. I think all of those are really even though there is a structural problem, conflict differences, but china also preferred a multilateral approach. Both sides have multilateral discussions. That is the hinge of the style change compared to the current administration. I think that will be a relief to the world and people will be more pragmatic and treasure a new opportunity, especially amidst covid19. Thee got get to get world of this crisis. They have a moral response ability to Work Together with other countries to lead the world out of this. I think the two of them will have a lot to talk about. Rishaad absolutely they do, as they have the uighur issue, hong kong, taiwan, india, the causes of covid, and of course the wolf warrior diplomacy, a aggressive strategy deployed by china in the face of arguably also america becoming more hawkish. To, theyside have essentially beijing, give the new administration an opportunity to improve relations and do you expect layins to improve . Expect relations to improve . Henry absolutely. I expect relations to be stabilized. I think president elect biden will put a floor to the downward spiral, things that have happened in the last several years. Also bidens team, will have more expense, more International Experience and global views. [indiscernible] think any issues, we really need to talk. Whether it be hong kong or human rights. I think china is open to those discussions. , china at the eu summit, [indiscernible] think we also need to clarify, there could be exaggeration of whats happening, youre talking about one million, two million, 3 million uighurs in the camps. I dont know where that number comes from. There are only eight or 9 million in the area. Henry, whether or not adopts aelect biden different approach to china, there are significant voices saying whether it is biden or a successive administration, it will be able to revert the punitive tariff already imposed by the u. S. On china. What is your take on that . Henry i think it is really up to the president elect and his team. I think the Business Community would not favor a continued trade war. 25 or whatever, it is hurting the u. S. Consumer. U. S. Businesses. And the sanctions on china, like the u. S. Semiconductor sector, we lost one third of the sales to china. We continued with 25 of the market in china being affected. Boeing lost planes to china. [indiscernible] business is tired of the still and increasing. Things are not improving for the u. S. Manufacturers. They are moving to vietnam. To the vip. Ome back biden and the Obama Administration had talked with the administration it was almost done. Market access, plenty of deals, a level Playing Field and all of those things. I think its great that we can and Climate Change and what we have with china and russia. Haslinda right. Has beenining is signed. How much pressure do you think this will put on the u. S. To rejoin the tpp . Multilateralism. The u. S. And asean countries, they started with aipac and pacific rim countries collaborating, and tpp is an outcome of that and the u. S. Was leading that. Think it is a great and a low level of the free trade agreement. But the tpp that the u. S. Had signed before the Biden Administration, i think biden could come back. It could give more impetus to the asiapacific free trade agreement. It could pave the way for the future of free trade in the asiapacific. Is favored for that. To ody is objective everybody looks for trade. The biggest benefit of the last 35 years, preventing us from the war and conflict, i think we need to go back and have better trade and asia is the biggest market in the world. China will be the biggest market of the countries in the future. I think if we focus on the main welfare of people in the region, the trade will reach Many Properties and thats great for china and the u. S. And the rest of the world. They need to balance the leadership with china and lead the world out of the pandemic crisis and uncertainty. Haslinda a lot of optimism there. Henry, a berg contributed still to come, an exclusive interview with the header modi. Prime minister modi. How he plans to build indias economy. This is bloomberg. The indian Prime Minister says he is aiming to attract Foreign Investments and modernize the countrys urban centers, that as a nation tries to rebuild from the worst economic downturn in decades. He gave a keynote speech on the second day of the Bloomberg New Economy Forum. Covid19 has given a chance process ofte our making cities more livable for people. This includes better housing facilities, better work. Nvironment our cities cannot prosper without availability of affordable housing. Our Housing Program from 2015, i am happy to know we are well on our way. More than oner quarter of 2 million houses to the target ofe 2022. Looking at the conditions created by the pandemic, we also will introduce a rental housing initiative. Act. Eated the regulation this has transformed the dynamics of the real estate sector. It moreis has made customer oriented. Mobility, creating resilient cities. [indiscernible] deliver closek to 2022. In the country by our made in india push has led capacity for transportation. Is going to help us transport goals in a big way. It is an important enabler in the journey of a resilient city. Cityology helps manage a efficiently and build connected communities. We are looking at the future. Education, health care, shopping, food, may happen online. To be ready for the convergence of the physical and digital worlds. Are helping create processes, a nationwide connotation upholding the philosophy of [indiscernible] these cities have prepared for [indiscernible] 20 billion has been completed or nearing completion. To unleash the full potential of technology. Haslinda the indian Prime Minister speaking at bloombergs new Economy Forum. More big voices perking at the desha speaking at the form on wednesday. We will hear from the European Commission president , a former boe governor, and the imf governor, among others. To the we are headed japan close for the lunch break, looking at tokyo. What we have at the moment, trade data that shows the Global Economy is coming back as exports only fell fractionally, much better figures than expected. The import side of the story is not so good. This is bloomberg. Lion City Investors mulling that opportunity we saw in the u. S. Overnight. Checking this today. Call aftering the the plan to merge with india and under that plan, they would pump about 336 million into it. They are up. 4 . China is accelerating digitization of the entire country. As the economy bounces back from the pandemic. Discussing emerging trends in an exclusive panel at the Bloomberg New economy form. China is wellprepared, even a smart cityfrom perspective. I am hearings and there is an and i am hearing shenzhen there is an app called i shenzhen. Haveusly, with covid, you one additional function. That is the health code. Anycan check if there is venues you should avoid. A greeny, if you have code, that means your safe. It is very important that we already have done a lot along the lines of digitization. Both in the private sector. In the private sector, ridesharing, that business has been very popular in china. Didi has seen the highest number of rides per day among all countries. I think china can use those tools as they quickly tackle the issues and challenges when covid happened earlier this year. The perfectu are person to address that. Talk to us about the hit that the ridesharing business took, all of the measures involved in protecting the drivers, protecting the passengers and how the business has recovered. Where is ridesharing now . Sure. When the pandemic came, the business came up suddenly. It was quite dramatic around january, february. We gradually see a recovery starting from april and right now, we are fully back. We are fully back at alltime high. We are serving 66 million rides every day. That is very nice. Over the pastone more than half a years number one, we need to make sure that our drivers and passengers are safe. We urge our drivers to where masks and we encourage our passengers to wear masks. We send out a free mask for everyone. A fun for drivers and passengers, especially from for drivers who have been quarantined. And we have been working with the Insurance Company so that we can extend the lease payment. Thingse having a lot of done. In south america and australia, we have installed plastic dividers so that we can keep passengers and drivers separated. To lower the infection chance. There has been a number of things. One thing i feel extremely proud didi hero initiative. Care,s and nurses, health they just cant get around. After a whole day of work, they have to walk home. Many of them need to walk for one hour or two hours. But we have done is organize a team of drivers and they volunteer themselves. Drivers will,000 volunteer themselves to offer free rides for the driver. Have done. T we we have learned to be a resilient organization. Out theed how to ride cycles through the whole pandemic. Rishaad that was the president of didi. Forget that the new economy form is on a week today. You can catch those conversations online, on the terminal and on the event social channel. It is on twitter and facebook. Lets get to the first word news. We have three former lawmakers in hong kong being arrested in connection with a scuffle in the Legislative Council chamber in may. 82 and raymond chan were detained for allegedly trying to disrupt of the vote banning criticism of chinese the Chinese National anthem. This is following the passage of a sweeping security law in june. Scott morrison has become the first world leader to visit the japanese Prime Minister as he tries to build a coalition of likeminded democracies to challenge chinas ambitions in asia. Signing a new defense still following the socalled quad talks in tokyo last month. This is the Legal Framework for each company to collaborate on military exercises and humanitarian work. Twitter and facebook has been challenged by lawmakers amid accusations that they are failing to moderate online speech and yet censoring conservative views. Zuckerberg and mark answer questions on social medias role on political discourse. This is on the republicans say is an unfair bias against white right wing content. Antigovernment protesters had Water Cannons fired at them. This comes as lawmakers begin a constitutional rewrite. Protesters also on the Prime Minister to set down step down. That is a look at your first word news. Look at thee a markets right now. It is the end of a session in asia. Investors back. Has as. Economy still long way to go. 1 . Ndex is down about biggest at four months. Taking a look at the asia index to see if theres any resilience there. Up about a 10th of 1 . China is in focus, pushing ahead with a plan that threatens to kick Chinese Companies off u. S. Exchanges. Singapore sti is up about. 1 . Ise stocks where washing didi. Didi stands to benefit from greater scale. It is up about 6 right now. China bud black 3 million shares. Grant has purchased 54 million shares today. Ease creditto downgrade. That is not relieving pressure in asia. Investment ining , flagging affiliate cash trade. 73a is currently at malaysian ringgit. Still to come, the secretariat director. The qualities that women bring to the negotiating table. We will hear about that next. This is bloomberg. Withad you are back Bloomberg Markets as we have a look at a couple of business flash headlines. We have Goldman Sachs threatening to cut jobs for a second time in three months after a moratorium on firing as the pandemic gives way to greater efficiency. 400 positions illuminated in september but it could be one of goldmans most significant because as it seeks to deliver on a promise to rein in costs. Amazon is expanding his presence in health care with drug discounts for u. S. Prime members. The moves comes move comes pillpack. Zon bought that puts them indirect competition with cvs, walgreens as well. Those companies polish sharply upon that news. Malaysia plays host to aipac the 21 eting of 2021 economic leaders. She told us about the added pressure gender brings to the role. I always like to see it as genderneutral. All of these roles are genderneutral. Having said that, how you perform has bearing going forward. If you mess up, it is not messing up for yourself but a whole lot of others who will follow in your footsteps. Than anything else gives me pressure. It is not just the just because it is the first woman to do this and the first woman to do that. Quite a new meal new zealand, taiwan, Angela Merkel in germany. Do you think the pandemic can help change the notion of Women Leadership . Women are the ones bearing the brunt of more of the pandemic. Working from home. When you have families to take care of. We have multiple roles. For people who focus on those, it is better because she is a woman. I would like to say it is because she is a better leader. Not because it is better because she is a woman. This person comes within this is their qualification. Itd help for that some attributes that are associated with women could help . There are implications for local trade agreements. Women just have attributes in negotiations. The ability to listen, sympathize and empathize. Those are importance goes to have in any negotiation. To participate, read between the lines. Those are skills that you learned regard this of whether youre a woman or not. I think what we bring to the table, what we bring to the table is our ability to empathize. I dont want to diminish the buts ability to empathize the ability to listen and empathize and multitask. I think that is the gift given to us and how we use those skills at the end of the day. That matters. What is the most important aspect . The apex secretariat, the rule is to support the host economy. Differenthas been because we had to look at how we work, take a step back. The value of some of the International Meetings is really the person to. It is the building of tryingerie, physically to resolve things by having a cup of coffee and some things like that. That is very important. Environment, that is what i feel we did. Having to bring ourselves into this. It is such a challenging environment. Ourselves to a stage where we can have a cup of coffee and chat. It is tough to do it under virtual environments. But with facilitator the process. Is providing the necessary Technical Support to to host economy or helping make this a lot more work done. We talk about trade, you often hear about how the big economies benefit more than this mother ones. The Bigger Companies benefit more than the smaller ones. How do you change that narrative . Rebecca whenever we get involved in trade negotiations, especially freetrade agreement, there is always the cynical view that youre doing this but it is only the Big Companies that benefit. There is no way to benefit the small companies. That is why it is important, the work that we do. We have a dedicated working group working with small and Medium Enterprises to ensure that we share best practices, to enable, to see how some economies have been very successful in helping the small and Medium Enterprises. Helping them get into the supply chains of the Bigger Companies. Speaking of the value toins worth with regard tech words as well, how is a apecdealing with this dealing with this . Apec we have difficult discussions and challenging subject matters. One area that we are working on is the Digital Economy. Looking at how we can facilitate the data. What kind of policies were. What kind of policies we need to change. What are the Structural Reforms that need to be made in order for us to facilitate the Digital Economy among our members. These are difficult pecversations but because a is nonbinding and a voluntary platform, you get less posturing. Rebecca fthat was atima sta maria giving thoughts on where bychkova should be headed. We have the very latest on brexit next, this is bloomberg. Rishaad the pound sterling is at 1. 52 at the moment. On the way up with brazen tootiators said to be close a deal on future relations. They are some way apart on a range of issues. Lets get into it with Jodi Schneider. Showing some signs of progress. Thanere any more reason usual to have optimism . We have seen this movie before, about four years now. But we are hearing from both sides that they could strike this deal on the future training and security relationship with perhaps early next week. There is supposed to be a deal on the biggest sticking points. Itm mr. Boris johnson says may prove possible. Looming and both sides now have a little more impetus to get there. If that does not happen on december 31, there is this crash out. Businesses are being warned that that still could happen even though there was a little more light at the end of the tunnel. They are sharing some kind of progress. Walk us through that. The significant areas of theention remain beneficiaries. The two sides are still at odds for this level Playing Field for business. There is also at the other areas, including how breaches of this deal could be penalized. The u. K. Resisting the efforts to include in that enforcement mechanism. Of course, the eu is saying they give from boris johnson. They are not going to just give, with december 31 looming, there is seemingly more impetus for both sides. Summit. L need to have a been signed byot then, there could be a messy brexit from that single market. That will start to occur. Could these deliberations actually continue into december if needed . The u. K. Departure is said to occur on the 31st of december, right . it could. The eu suggested it would be go through the deliberations. Although the eu parliament, the european president has indicated it is about three weeks to scrutinize any agreement before it holds a vote on the deal and all the member nations have to take that vote. It is currently scheduled for december 16. It is in the middle of the pandemic. There is a little bit more give. There may be emergency plans to have that vote even after christmas if necessary but they would need a deal on the table to do that. If there isnt a deal by middecember, the eu is going to walk away from this at that point. Crash out will need to start occurring. That was Jodi Schneider in hong kong. Lets do a quick check of the latest business flash headlines. News that tesla is to join the s p 500 has stock searching. Surging. Tesla will join the index on december 21. The most valuable new entrants in the history. This is the biggest gain out of the bloomberg billionaires index. Makere electric vehicle fail. Shares are of more than a thousand percent this year overall as investors back strong ev growth in china. The value became higher than General Motors after selling 5000 cars in a month for the first time. Revenue was up almost three times from year ago. Deepening the ties with the chinese automaker that could be electrifying down the road. The deal would create a power unit that could be used for hybrid cars in europe in china. Ge will use its affiliate, volvo. Daimler has no intentions to form more partnerships. Southeast asias most Viable Companies raising forecasts for its two key businesses after a surge in revenue shows it is benefiting from strong demand. Doubled to income 1. 2 billion. The net loss also doubled to 400 million. Digital entertainment revenue will move. Ecommerce also beating initial directions. Screen reply supplier is weighing the sale of its business for as much as one billion u. S. Dollars. Were told the Hong Kong Company is working to identify potential buyers of the unit. And onces plans nonbinding bids by the end of the day. Its founder is the fatherinlaw of this hong kong billionaire. Rishaad in the next hour, we will be speaking to one of the road leading experts on viral infection. Duke ande joined by u. S. Medical schools. Chairman here. All of that to come in the next hour of Bloomberg Markets. Do stay with us. 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. It is almost 11 00 a. M. In singapore and hong kong. I am haslinda amin. Look him to Bloomberg Markets asia. Welcome to Bloomberg Markets asia. Rishaad the sec considers banning mailing companies from American Estate american exchanges. It all at stew uncertainty in the markets. Stocks lower in tokyo with plans to raise the citys virus level. As hong kong struggles to recover from street protests, covid19 is in a deep recession. We hear exclusively from one of its biggest developers. Ronnie chan joining us this hour. It does seemket, like investors are taking a breather. That has returned, this is the fear of covid restrictions. He says look at the index down by a 10th of 1 . This was after a reaching reaching an alltime high. The market now estimating bears cases in the u. S. And europe. Lets have a look at the opening in bangkok. Just following the regional trend at the moment. On the way down by about four tons of 1 . 4 . The focus is on reviving the economy and that all shifted toward fiscal policy. There we go. The nifty is projected to open flat there. We go to the rupee. Just a tad stronger. 74 rupees. Onto our top story. Pushing ahead with a plan that with see Chinese Companies u. S. Stock exchanges. The regulators do not require in august. Dothis is for companies that not require an audit. The move is pretty unusual for the sec, coming after an election. What is it proposing, exactly . Tom that is why, also, the head of the sec are really accelerating this framework. This would force Chinese Companies to delist from the u. S. If they dont abide by u. S. Auditing rules. In terms of where we are in the timeframe, you could be looking at early december for proposals. You may have the rose fixed and in place by january of 2021 and then you could start to see Chinese Companies delisted from as early as 2022. Why are they doing this . Because they there is deep frustration and the Chinese Government does not allow the inspection and verification of audits of Chinese Companies that are listed in the u. S. They have not allowed this since 2002 when the changes in the law took place. All other companies do. There are reasons around confidentiality. This has been given added momentum. Scandale accounting that added fuel to the fire for this. The momentum is there. That. Right to point out rishaad we might ashley see a rush to list here in hong kong if this does come to pass as others have been. Tom it is worth noting that in some respects, there hasnt been too much concern from those Chinese Companies. Dragonlook at the golden in the adr there, it did not move significantly lower. Youre absolutely right, we have seen a number of secondary listings in hong kong. That is because of concerns about pushes to delist connies companies. They have all gone down that route. Other Companies Continue to list in the u. S. You still have about 150 chinese copies listed in the United States with a market cap of 1. 2 trillion. Bet that there was some time leg play here. Maybe the Biden Administration will soften some of these rules that beijing and washington will have them coming to some agreement. Both the democrats and republicans want china to play by the rules on this issue. Rishaad that was Tom Mackenzie in beijing. Lets move to some of the first word News Headlines with china being urged to set Economic Growth target of about 5 annually over the next five years. That is down from the latest fiveyear plan. The academy of social sciences saying that 5 is a more realistic target. President xi aiming to double the size of the economy by 2025. The pan is sending mixed trade messages. They missed expectations by quite a margin. Despite surging virus numbers in some key markets. The value of exports dropping. 2 from a year ago. Int is the 5 slide we saw september. Australiae bank of sent them back but the recovery is uneven. Still urging businesses to take risk and saying that the government must offer the fiscal environment for that to happen. One note of caution, australia is rising on low Interest Rates the toolsays he has to curb that if necessary. Going to the federal reserve. Mitch mcconnell forced to repugnance into quarantine. The party was left short of the votes needed to overturn the opposition. The senate may reconsider sheltons nomination later this week. That was the first word news. Still had this error, we will see this during the pandemic. Us for ann joins exclusive interview. Quickly could a vaccine and the pandemic . We will be here to discuss that next. This is bloomberg. Welcome back. News,months of bad virus modernam pfizer and offer hope. The question is who will get the vaccines first . We have one of the worlds leaders leading experts in infectious diseases. Professor wang, good to have you with us. Where are we in containing this virus . Professor it is unfortunate. I think that we did not do as good as we can. Weyears after the fact, should be able to do better. The other thing is i feel like the world is divided. Your europe and the u. S. Are not doing as good as asia. There could be scientific there wereause crossreactive antibodies. Populations in africa and asia could be exposed. That may explain some protection. Why these two continents are not as bad as other continents. It is complicated. Haslinda it is confiscated. Are stillhat there unknowns about the virus. Could live in frozen meat. Can you clarify that . Professor this is no surprise. We always knew that it could survive in cold, dry conditions better than humid conditions. In frozen food, it does not mean the viruses that living there it does not mean the viruses are replicating and amplifying but if the virus just survived their in the present conditions, this is not new. But we still dont know is that the viruses there are infectious. Risk of frozen it is possible to get infection from frozen food but the risk is very low. So much optimism now about the vaccine. Who will get it first . I am as optimistic as the data shows. When we talk about efficacy, we are talking about the effectiveness of the vaccine. It is all 90 or greater. This is as good as it can get. 50 efficacy is a minimum. We will go ahead with the program. 90 is very, very good. To saysaid that, i have that when you go to the larger population, this may change. Even reduced to 70 or 80 is very good. Tell me professor, just here, these vaccines have been it has been unprecedented in how quick they actually came up with them. Does it concern you that we mightve had this testing done but there could be longterm side effects coming from it . Is that something you would be concerned about . It is a good question. you have the shortterm safety and efficacy. This is a phase three trial. The longterm efficacy. If weeans reduced effect are hit by a related virus three us from now. We all know now that it is have the that you antibody and tcell immunity, even from infection, we are only 810 months into it. The good news is that it looks like immunity will last from this. The long answer answer to your question is that we dont know. Andlongterm side effects longterm efficacy that actually has little to do vaccine speed of the development. That happened because there were some results put into it. That platform has been tried for many years. There are two processes. One is the speed of development. That is unprecedented. In terms of longterm safety, whether you take three years to develop a vaccine or one year, the same question remains and only time will tell. Just moving on to the two vaccines were talking about at the moment. Be stored one has to in very cold temperatures. That makes it difficult for developing countries to use it. Has ae from moderna refrigeration system. There is not quite as big a problem there. Is it likely to not have a need to cool it down . Professor wang we have over 100 vaccines and tenure. Call the first generation or the front runner vaccines. This is incredibly good news but the secondwe have duration what we are hopeful for is two things. One is the storage and shipping conditions. If we have a vaccine that does ,ot need such a low temperature that is hoping developing nations. That is number one. These vaccine platforms need to injections. We still have yet to see certain shown to be efficient. If one day we have a vaccine that is as safe and effective but you only need one injection and it can be shipped in Room Temperature or not that low of a temperature, it would be a huge difference. I agree that it is good news right now. That we have achieved the vaccine but i think there is possibly more good news to come. To get i just wanted your view on the pathogen itself. Many people on this program said that it is mutating. More does, it is becoming anodyne. It could become like a common cold without the cold . That is awang possibility. The first question that you asked was your audience was worried about the virus mutating. It mutates as he gets transmitted from one person to the other. A large rna virus. That is less stable. With everything considered, the covid19 virus, as a matter of fact, scientists think it is more genetically stable than we thought. So far, more than 55 Million People have been infected. The real number could be double that. Consider that that made people have been infected. It has jumped from humid to animal and animal to him in. Jumping and transmission, i think that we are actually happy to see the virus is relatively stable. We need to protect all the changes we have seen so far. In that aspect, we are relatively confident to say that the majority of the population on this planet can be protected from reinfection of the virus. The question is whether the virus was a success whether it would become another seasonal coronavirus. That depends on the political will and the financial backing and also the corporation of the global citizens. Already know if one nation does really good with the vaccination and another one is no good, i think we could never achieve total containment. We cannot achieve if we cannot achieve total eradication , the virus would become seasonal like other viruses. 1. 7 billion animal viruses sequenced out there. Who should fund this effort . Professor wang i think it is an international consortium, that would be best. One thing with covid19 i always say the geopolitics environment is not as conducive now as it was 17 years ago. Although there were disputes about the iraq war. All the major nations are working together. Covid19, i think the only way out is for the International Community to Work Together. You have an International Nonprofit consortium and then all the nations interviewed the money and you work as an nonpolitical, almost peacekeeping. That is the way forward. If one country does well and the others dont, youre still going to be in trouble. Professor, thank you for joining us from duke u. S. Medical school. This weeks lineup includes the ands of hsbcs leaders carlos. You can catch those conversations online, on the terminal and on the social channels on twitter and facebook. Youre watching bloomberg. Haslinda Christine Lagarde has warned that vaccines wont be chamber. As the new economy forms, she spoke us school civilly with bloomberg about the economic s seconds the pandemic wave is bringing. I am not sure that will be a major game changer. What we had anticipated in our baseline was that at some stage in the first half of 2021, they would be a vaccine and that it would be rolled out in the course of 2021. Aght be other bit little bit accelerated. I dont think that is going to be a game changer so to speak. I think that our forecast is being revisited as we speak and we will be releasing on the 10th of december. I dont want to anticipate what the outcome will be. This great news about the vaccines, we had some pretty negative news concerning the second wave that came about earlier than anything we had anticipated. Together, with that second wave, we have that list of containment measures and lockdown measures that have affected one country after the other in your area. We have a combination of those developments that affected the situation negatively. That also has an impact on the outlook. What kind of economy do you see for europe and the world . Is it doubledip . Is it something that is so uncertain at the moment . Get a vaccine, we dont know how consumers will behave. Toistine i dont want downplay the very good news that the vaccines were. I think that as a central bank, we have to be mindful of not just the shortterm and to news impact, we have to be mindful of the overall situation. In that vein, i think the second wave we saw presents risks. Rishaad that was Christine Lagarde speaking exclusively with bloomberg. Lets take a look at markets as we go to the china lunch break. Lunch break and returns from that in about five minutes. Japan on its lunch break and returns from that in about five minutes. If you a steady picture will. We have u. S. Shares retreating, investors weighing the escalated covid19 cases against that overism that ruled the day the vaccines. The dollar is edging a bit higher. Lets look at china. But we have is the one climbing to the strongest level in more than two years. Uan climbing to the struggles level in more than two years. If we have a look at the bond market, investors are getting there once a year opportunity to snap up china sovereign debt. We have the 10 year there. 3. 3 yield. Where people are taking stock and we are just drifting a little bit with regards to equity markets in this part of the world. This is bloomberg. 28 degrees in indias financial capital. About 9 00 in the morning. We are looking at a nifty futures contact suggesting a bit of a clawback. But lets not forget this insects and the nifty at the moment, both of record highs. Prime minister modi says he is aiming to attract Foreign Investment to modernize the countrys economic centers. Speech ons keynote the second day of the Bloomberg New Economy Forum. Covid19 has given a chance to accelerate our process of making cities more livable for people. This includes better housing, better work environment. Cities cannot prosper without availability of. Ffordable housing we launched our Housing Program in 2015. Deliver 10 million houses to families in urban areas before the target date of 2022. Looking at the conditions created by the pandemic, we also introduced an affordable rental housing initiative. Also, this has made it more. Ustomer oriented our push has led to tremendous capacity of transportation systems. It is going to help us push for sustainable goals in a big way. Technology is important in the journey of a prosperous indian city. Technology helps manage our city and will connect communities. E are looking at the future we are a major center of education, health care, shopping. Our cities need to be a part of the convergence of the physical and digital worlds. Creategrams are helping capacity toward this. [indiscernible] 20 billion has been completed to unleashcompletion the technology. Haslinda Prime Minister Narendra Modi speaking it forcibly speaking exclusively at the Bloomberg New economic forum. Coming off a index records reach earlier this week. Index gained pac losses throughout this morning. In the fx market, the yen and other safe havens maintaining gains. The dollar outperforming most of the developed market peers. Yen, 104. 12 versus the usd. Lets get the first word headlines. Market regulators are pursuing proposals that may see listed Chinese Companies kicked off stock exchanges in new york. The securities and Exchange Commission is weighing punishing firms for not complying with auditing rules, setting up a clash between the Trump Administration and beijing. The u. S. Has complained for years that Chinese Companies do not let inspectors review their accounts. Iran says it will fully implement the 2015 nuclear deal if the next u. S. Administration complies with the Relevant Security Council resignation and the sanctions. Foreign minister said they wanthat washington standing to improve in the coming months. If mr. Biden becomes president , he can list all the sanctions. If he does not, it means he does not want to. President trump is excited to order a further drawdown of troops in iraq and afghanistan. The u. S. Central command has received an informal warning that would lower troop levels to about 2500 in each country by the middle of january. Mcconnell says that would be a humiliation akin to the u. S. Withdrawal from vietnam in 1975. Tokyo city authorities are ready to raise the virus alert to its highest level as infection numbers surge. The nikkei news says the government may also tell stores to close early, with an official announcement expected thursday. Tokyo assesses that hospital facilities and citywide Virus Testing are not yet too strained. High. Kkei fell from a South Australia has announced a sixday statewide lockdown to help contain growing covid infections in the state capital of adelaide. Universities, schools, and restaurants will close and Wearing Masks will be made mandatory. That was the first word news. Coming up, we are joined exclusively from the Bloomberg New Economy Forum to discuss how hong kongs Property Market has fared alongside political tensions. And, the global pandemic. This is bloomberg. Haslinda welcome back. We are counting down to the open in india, keeping a watch on luxury shares, down about 20 in premarket. Of course, we have the story saying would be to merge with dbs india, and dbs would pump millions of dollars under that plan. Currently down about 20 in premarket session. We will track that stock when the market opens. That was a quick check now lets get a quick check of the latest business flash headlines. Delta airlines has found a way around trumps new tariff claims by basing them overseas. Delta has taken seven jets since the levees took effect in october of last year, but rather than flying them home, they are being based overseas in places such as the never once, japan, such as the netherlands, japan, and el salvador. The strategy means the planes are not imports. Asia is reviewing investment in its cashstrapped indian affiliate. It now relies solely on funding from giant conglomerate tartar, which owns 51 of the airline. Announcement comes after filed for bankruptcy. Airasia and Airasia India have been hammering cash during the pandemic. Was set to be volleying an ipo under the main career business are a second listing as it aims to raise around 5 billion. Demand of has seen partial deliveries this year because of covid19. Goldman sachs is said to be ready to cut jobs for the first time in three months as a moratorium gives way to a push for greater efficiency. Sources tell us the latest reductions would not be as high as the 400 positions eliminated in september. However, they could be one of goldmans most significant cuts. It seems to deliver on a promise to rein in costs. Has been plenty of optimism over the latest faxing developments, but that mood has yet to spread to the property sector. Hong kong Office Rental declines could extend despite the gradual economic recovery. The city is also mired in u. S. China geopolitical tensions and beijings National Security law. Joining us is hung Long Properties chairman ronnie chan. Great to see you. How bad are things at the moment . Ronnie ok. Hong kong is much better than last year. Covid slowed things down, but otherwise society is pretty calm. Emily what about your rishaad what about your business itself. How is that reshaping the way you look at the industry itself now, and how you Lease Properties . Cel ronnie Hong Kong Commercial properties are hurt. Mainland china is booming, so a little over half my business is fantastic. The other half is dashing hong kong. Rishaad with all of that in mind, do you bureau away from your traditional business, or are you going to concentrate on your tour activities from before . From last 20 years, hang lung has been concentrated on Real Estate Development on the mainland. We have not bought a piece of land in hong kong in a long time. In hong kong, we are only positive about the luxury residential sector. The commercial, the shops, are really hurt. Offices are weak but not seriously hurt. We have been concentrating for 20 years on the mainland, and we are fortunate. Emily your business rishaad your business in Mainland China as well, you have a luxury mall. How is the recovery there post covid19 . Generally speaking, we are getting very bullish news from the ground in the mainland. Are you . Ronnie you need to read the reports from the Luxury Brands. We are seeing exactly the same thing. This is all over Mainland China. As long as we have luxury shopping service, rents have been growing doubledigit definitely, and the sales of our tenets, some of them, the top brands, are two or three times better than the same ones last year. Actually, more like three times. Thats pretty good. Running, there is some concern in the Property Market in china. Beijing has said it is looking pretty hot. Is,t overheating, and if it is there risk that it could derail chinas economic recovery . Beijings concern is more on the residential side for any government. Residential side is one thing, which we hardly touched. We only do very little, but very highend luxury residential. But those are all attached to our luxury Shopping Centers and offices. Both of them are doing well. The offices i would not say or look excellent, but the highend retail is superb. Haslinda but the impact on the Properties Sector is farreaching. There are concerns about how Property Developers are leveraging up, taking advantage of monetary easing. What is your take on that . What is the risk you see . Ronnie lets face it, the local mainland Residential Developers have always been hugely leveraged. It is just a matter of time that some of them would get into trouble. Beijing does not seem to, in the past, want any of them to actually blow up and try to help them, but on the other hand, i have always been predicting that sooner or later beijing will have to let the market work, and those people who have really overleveraged themselves seriously, some of them will have to pay a price for it. It does not affect the economy. The real asset is still there, just changing ownership. Those guys who are overleveraged ought to pay the price. But it will not hurt the economy that much, except psychologically, perhaps. It is just same asset but changing hands, let somebody with better financing handle them, or maybe better capability and development as well. Capability in development as well. With china putting a lid on leveraging Property Developers, do you see that we leveraging chinas property sector . Ronnie i hope so. I think it is a matter of time. Everything evolves, including the market. To restructure it an overall lower the leverage of the high it im sorry, the max residential, that would be a good thing. Borrow moneyy can very cheaply in hong kong. In the old days, they may have been paying 13 or 14 on the fixed income instrument, but now some of them the same guys are paying, i dont know, six percent to 8 . Think but at the end of the day, everybody who does real estate with a lot of debt is running a huge risk. The market is rising very quickly, meaning the demand is huge, like in the last many years, then it may be ok, but even then it is not a sustainable situation. Weve got carrie lam, the chief executive of hong kong, with a major policy address next week. What measures would you want her to outline . Ish, i friendly, r dont get involved frankly, i dont get involved with hong kong politics at all, but even Hong Kong Policy is of less concern to me. What i want to see is that all the damage that was done first with the madness on the streets of last year, when you can throw gasoline at a person and set them on fire and you dont even know who the guy is. That has to be put down. It has to. Otherwise, personal security is gone, Social Security is gone, the economy will follow and it will be over. Thank god we were able to stop that. Part of it was covid. The economy needs some time to recuperate. Our retail sales went to hell. 30 it was estimated that in 2018, our Retail Private consumption was done by mainland retail. 34 million of them coming to hong kong to spend money. And last year, because a part of the society takes those guys away, you are not only taking people away because they speak mandarin, you are also taking dollars away. The economy in the Retail Sector is especially hurt. Gone, evensector is before covid with the social unrest last year. The travel industry is finished. I hope that the policy address will address some of these basic fundamental Economic Issues and give us a chance of a gradual recovery. Haslinda ronnie, have cut rent for your tenants . These are difficult times. Ronnie my question to you is, do i have a choice . Many retail outlets are closing doors. , orou want to keep them would you like to just have an empty premise . Every owner has no choice but to cut rent. We are fortunate because our tenants tend to be bigger, major brand names, not only luxury names, but very much household names. When that is the case, i think it is a lot less than some other people. The ones who have luxury malls and Luxury Brands in hong kong, we have a lot on the mainland but zero in hong kong, but those who have luxury names in hong kong as tenants, they were really hurting bigtime. Haslinda ronnie, thank you so much for your time today. Our exclusive interview with Hang Lung Properties chairman ronnie chan. Lets take a look at where india is headed today. The nifty and since x synsex are in positive territory. We had the Nifty Bank Index up by 0. 6 . It is at record highs. A second look at some of the stocks we are tracking today. Bank is in full focus to after the merger announcement. 300 million would be pumped in that merge plan. The bank still down about 20 right now. Keep it with us. Way more ahead. This is bloomberg. With the virus now spreading in a fast rate, the next few months may be challenging. Before we had this great news about vaccines, we had some pretty negative news concerning the second wave that really came about, certainly earlier than anything. That also has had an impact on the outflow. Covid may be the spur for change. On the we must now focus necessary changes. 1 rishaad leaders speaking about the challenges of the post covid forum. Of abludes the likes inbevs carlos brito. Join those on the social channels on twitter and facebook. Lets have a great look at some of the business flash headlines. Amazon expanding its presence in health care. A new digital pharmacy and drug discounts for u. S. Prime members. The move comes two years after amazon faced 750 million for the online pharmacy. It puts the company in direct competition with pharma giant cvs and walgreens. Both companies fell sharply on the news along with other more traditional drug distributors. Daimler is to deepen its ties and develop a gasoline engine that could be electrified down the road. The deal would create a power unit that could be used for hybrid cars in europe and china. Geely is dimes biggest shareholder and would use a volvo facility to produce the engine. ,taying with the automotives news that tesla would be added to the s p 500 index and sent the stock surging. 15 ,s jumped as much as lifting his wealth to almost 114 billion. Tesla will join index on the 21st of december is the most valuable new entrants as the s ps industry. Muskas fortune blinged 90 million this year, the biggest gain or on the bloomberg billionaires index. Gainer on the bloomberg billionaires index. Haslinda lets keep an eye on the indian markets. The shanghai reaching new highs. The company is poised to take advantage of a proposed pandemic , economic recovery in asia, as well as next year. The nifty index higher by 0. 7 . The other stock we are following is like to be villas bank. It is on the news with a merger on the news of a merger with dbs india where 300 million will be pumped in under the deal. Rishaad lots to look for. Thats it for this edition of Bloomberg Markets. Next we are off to dubai, and it is daybreak middle east. Emily im emily chang in San Francisco and this is bloomberg technology. Coming up in the next hour, the ultimate editor. Facebook Ceo Mark Zuckerberg and twitter Ceo Jack Dorsey get an earful. We will get the view from senator marsha blackburn, who claims social Media Company employees are acting like the gods of silicon valley