Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240711

Washington ramps up pressure on beijing. Goldman sachs raises billions for a new fund to focus on private equity. The move comes amid rising interest in secondary investing. Haidi lets look at what the day has in store at the sydney open. We are expected a muted start to trading in asia after downward pressure coming from the u. S. Session overnight. Restrictions continue to take place to curb the the Coronavirus Spread we are starting to see accelerate again, even as we get further good news on the vaccine front. Trading marginal. The u. S. Dollar held to the lowest we have seen since april 2018. We are also seeing the aussie dollar on the back foot. Nikkei futures look like they will see a muted start to trading. Shery lets get started with good news on the vaccine front. Pfizer says final Data Analysis shows its covid shot is 95 effective. The ceo of its german partner told bloomberg about plans for mass production. Our goal is to supply up to 50 million doses by 2020 which andd go to states in europe the United States. For 2021, our goal is to produce at least 1. 3 billion doses. Shery our Bloomberg Health care reporter joins us. Two vaccines on the cusp, more on the way. How accessible will this be for the world . Can consumers start comparing which one is better . Do we have choices . We are going to start having choices. Pfizers vaccine test looks good. Any day we could beginning additional results from astrazeneca and others. Have data they will in early 2021. Great news there will be more than one option. There will be different supply chains and manufacturers. That offers a lot of hope for getting enough vaccine doses to vaccinate large numbers of the population. You are exactly right, getting this immunization to some emerging markets will be incredibly difficult. A lot of western countries have already large numbers of doses, so there will be delays. Hopefully these Public Health officials are working on parsing it out in a way that makes logical sense to get the virus under control. Haidi pfizer was part of operation warp speed. Do we know who gets credit for the Vaccine Development . We have seen question marks whether the poor will ever get access. The fight over who gets credit for these vaccines are already hot and heavy. Every government is putting their hand up, saying we participated in this. Pfizer did not take money from operation warp speed to actually do the research and development, although the u. S. Government did put in a large order for doses of the vaccine, rounding up a number of those for american citizens. The same happened in europe. Much of the funding came from the biontech partnership through the german government. Truly the credit goes to this Publicprivate Partnership where the governments of the world ass ured the industry they would have their back, they would give them money and buy the doses so they could start manufacturing, which is why we have millions of doses available now. That will allow vaccination doses to trickle down to these emerging markets as well. But as you point out, it will take time. Shery a few minutes ago we had the latest numbers out of john hopkins university. U. S. Covid19 deaths topping 250,000. It is no surprise we are seeing more measures to restrict the virus. New york schools closing down again. Absolutely. It is a terrifying thing. A quarter of a Million Deaths from something that did not exist a year ago. This is the Third Largest cause of death in the United States. The u. S. Is trailing europe, which is starting to see their death rates start to skyrocket, which is something that follows the increasing rates of cases. 150,000 people a day in the United States. The idea of new york city s whenng down its school you are not going to have a larger shot down raises questions shutdown raises questions. If there are people doing outdoor gatherings, many people not embracing social distancing, having people gathering in small parties and whatnot, it is those measures that have to be reinforced. We are going to see how it turns out with shutting down the schools. Studies show children get infected at much lower rates and are much less likely to fall sick. The risk is to the teachers and administrators and others in those schools, not the childrem themselves children themselves and whoever they are bringing the virus home to everyday. We dont know if it is safer for kids to be in school and away from the higher risk areas of the house. With time we will know. Haidi we are getting breaking news, a joint statement coming from the u. S. State department between the u. S. , u. K. , and australia on the topic of hong kong, urging china to stop undermining the rights of the people of hong kong. This statement saying the three nations calling on china to stop the undermining of rights of hong kong people to elect their representatives, saying for the sake of hong kongs stability and prosperity, it is essential fine and hong kong authorities china and hong kong authorities respect the channels for citizens to express their opinions. Three lawmakers in connection with a protest in the legislative chamber. It comes after the alleged opposition resigned en masse last week. We have seen pressures building after the National Security law was pushed through the end of june, despite concerns it would be used to suppress dissent in hong kong. Surge in virus cases is names from the Bloomberg New Economy Forum. We will be hearing from bill gates, from the imf managing director, the head of the World Health Organization as well as the ceo of moderna. This is bloomberg. Haidi we are taking a look at a couple movers in Different Directions in the sydney session. Otherwise a pretty muted session so far. Bluescope shares are jumping in a session high after increasing their outlook for guidance. Bluescope one of the positive movers, saying they are expecting demand in the Australian Market in particular segments. The Crown Resorts down 2. 8 . They were down by as much as we have seen over the past month. Crown delayed its sydney casino opening amid the highprofile Money Laundering probe. 1. 5 billion dollars sydney casino given ongoing concerns going into the presenting of evidence in that and corey. Lets get you the first word headlines. China says its confidence about the state of economy despite a looming global recession. The mainland economy will likely grow despite difficulties and will probably surpass 15 trillion dollars. He said china shifted from a stage of rapid growth to one of high quality develop it. The European Union saying substantial work is needed ahead. One official says there remains important issues to be resolved ahead of any potential agreement. Sources say the u. K. And canada are close to a new trade deal replacing the one britain had through the eu. We are told an announcement could come within days. Tension is rising among Oil Producers with the United Arab Emirates floating the idea of leaving opecplus. Officials have not given any public details over the plans, but tensions have been rising between abu dhabi and saudi arabia for weeks after the uae raised production levels above its opec quota. Those are your first word headlines this hour. Tory asian stocks look set follow the u. S. Lower. Asian equities under pressure from covid19. Joining us now is melda mergen, deputy global head of equities at columbia investments. Great to have you with us. Just until recently this week, we had seen vaccine optimism leading to a rally in cyclicals. This chart showing how em value stocks beat Growth Stocks by the most on record yesterday. Is this trend again going to be threatened by a resurgence of the virus . Melda shortterm, the answer is yes. We are expecting tough times in coming months because of the surge in cases. In terms of the longerterm recovery, vaccine was an Important News milestone. We passed that. We think the cyclical recovery is going to come back, but there will be some bumps on the road. Shery whether it is because of covid19 or the u. S. China tensions on trade last year, we have seen this diversifying of supply chains by businesses trying to build redundancies. How do you play that in the market . Melda it started with the trade dynamics changing globally. Pandemic accelerated. There were a lot of discussions whether onshore or offshore. We believe it will be offshore, just more diversified by countries. We are looking at different opportunities in different parts of the region. We believe it will stay offshore, so we recommend our finds focusing on that development. We play that in our portfolios, expanding our exposure to distant areas. Haidi the protections seemed to have fizzled out over the last few days. . S there conviction behind that melda the Growth Stocks are outperforming for a reason. They were resilient for a reason when the market was going down. Places in thel portfolios to be investing in Growth Stocks. That said, we will see cyclical recoveries from here because we ,ave seen a big recession globally impacted the economies. Bumps onl be some the road. I dont think people need to rush into investing in those names yet. But this is a good time to start looking into those companies that are mostly affected by the pandemic. Those Companies Already had a Good Business model, but the revenues impacted in the shortterm. Those companies are the places we are looking at. Investors can take advantage of this volatility and enter those names at a good price. Haidi where do you see conviction when it comes to emerging markets . The u. S. Dollar going lower will be a beneficiary when it comes to em assets and currencies. Where do you see the opportunity . Melda we see opportunities in asia. There are existing secular trends there in terms of ecommerce. There the penetration rates are relatively low. There are a lot of opportunities in asia specifically. Economies were resilient because they were more domestically oriented. We find a lot of ideas in the local domestic market. Brazil is an opportunity. Thee are some changes in regulatory environment. The rates are coming down. It is a lot of different places, but those are areas i would call out as conviction for now. Us. I melda mergen with next, china continues efforts to undermine regional influence. Inping set g jinping this is bloomberg. Haidi the Trump Administration ramps up pressure on beijing. Tom mackenzie is following this. We had this joint statement from the u. K. , u. S. , and australia itsng china to change actions when it comes to hong kong. What have we heard from president xi so far . Tom that statement coming after this speech from president the leaders of comes, russia, and it after a trump and mr. Risch and lining up further actions trumpt beijing administration lining up further actions against beijing. It is within the context that xi speech,gave this pushing back against what he called unilateral sanctions and long armed jurisdiction, a nod at the Trump Administration. He said the brics nations were facing momentous changes. He said they were all in the same boat. It is not clear many in india and china would agree with that sentiment. For many, president xis call for multilateralism will ring hollow, particularly when you look at beijings actions against australia in terms of trade. President xi is set to address the apec summit later this morning. That after the signing of the regional comprehensive economic partnership, that asset trade deal between nations which many analysts say shows the strength of china and its role in trying to pull nations together in a broad trade pact. It is potentially a challenge for the incoming biden administration. We will see what president xi says in that summit. Some familiar themes you would expect. Shery did any of that geopolitical risk make a dent on demand for chinas zero yield bond selling . Tom all those concerned about the potential decoupling between china and the u. S. Being put to one side because the hunt for yields is taking a priority. We saw pretty Strong Demand for that eurobond. Chinaing to sources, . 75 billion 4. 75 billion u. S. Dollars. China hoping to use this to set a benchmark for its lenders and build out the yield curve. In terms of sovereign bonds, it is a pressure point. You see a continued selloff in chinas sovereign bonds. You are looking at potentially seven straight months now. You are seeing yields well above 3. 3 . Concerns about whether the pboc step back with support. Concerns about defaults. And concerns about a cash crunch as banks have to repay into bank lending. Pressure on chinas bond market. Tom mackenzie in beijing. South africas president has reiterated his reason to reigniting raining and the country raining in this countrys skyrocketing debt pile. The president spoke to bloomberg in johannesburg. Our investments have been going down in relation to our gdp. One of the reasons why i, right at the beginning of my tenure as president , focused on attracting investment was to try to correct this. We are in the process of doing so. We set ourself a goal of attracting 100 billion dollars into our economy in five years. We are already more than halfway there. Bymitments are being made companies. Many of these commitments are being actualized. Trusting investment is in an effort to increase investment visavis our gdp. I think we can turn things around quite significantly, but sector,means the public which is government throughout its various entities, needs to demonstrate confidence in our economy. Publicsector, investment tapered down, and we now want to boost that. Through the infrastructure play and refocusing our state owned enterprises, we are going to be able to do so. In turn we will also see the private sector beginning to invest more. How confident are you south africa can avoid a sovereign debt crisis . This is a risk the finance minister highlighted. We have taken it upon ourselves to draw a line in the debt sand and decided we are now going to arrest the debt level, bring them down quite significantly over the next four years. We want to see our debt being brought down. We are spending too much money somebt servicing costs, in cases more than what we pay for education. That cannot be. Weve got to bring down our debt levels, make them much more manageable. Variety ofrking on a schemes, be it stopping thosetion, with all measures we are putting in place, i am certain we will be able to bring our debt levels down and avoid what you could call a debt crisis. Nation weling the have too much debt. A country that needs to grow needs to reduce its debt. We want to be able to generate more debt. It is through more investments you get growth. Thanu get growth, you are able to collect more revenue through taxes and be able to reduce debt. 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Download the free app today. Shery this is bloomberg daybreak asia. Reported virus deaths in the u. S. Have now topped a quarter of a million. Rising infections are forcing new york city to close schools and return to remote teaching. U. S. Regulators have given the goahead for the first covid at home testing kit as infections surge. Result system costs around 50 and users will need a doctors prescription. The new york subway is becoming a hoe prior file victim a highprofile victim of covid19. The loss of almost 10,000 jobs in train and bus lines if the federal government does not offer more aid. Tolls in the and metropolitan area will rise. Peak time Commuter Rail services will be every halfhour or even hourly. Hsbc is offering hong kong staff greater flexibility to work remotely, allowing employees to work up to four days a week from home. A memo seen by bloomberg says the bank wants to become more flexible in how it operates. Its cfo said last month that more Remote Working could reduce office costs and some banks say staff will ultimately work from home about half the time even after the pandemic. Lawmakers in thailand rejected demands by prodemocracy groups for curbs on the power of the monarchy, voting instead for a committee to realign constitutional passages that dont involve the king. Protesters say they will step up rallies in support of their demand, which include royal changes and a resignation of the Prime Minister who has so far refused to go. Those are your first word headlines. Haidi we are seeing asian stocks slipping after a small session in the u. S. Tos go to some p Sophie Kamaruddin in hong kong. Below the yen holding 104 after a fiveday gain. Ngx 50 has swung lower. A vaccined inked agreement, securing supplies for a vaccine and as well as effective pandemic management. Those will become key drivers in 2021 and markets set the timeline for vaccine distribution. A more than ample global money supply that is on the sidelines. One saying that leaves lots of room for rerating. Areas that are economically sensitive are areas that lagged this year. Bernstein strategists expect equity inflows will continue at a slower pace, given there is still a ways to go to reverse the pandemic volatility. Still the surge of virus infections around the world remains a Downside Risk to markets. Haidi australia in the meantime darting a sixday starting a sixday lockdown. Paul allen joins us with the latest. How serious is this fresh dayreak to warrant the six lockdown . Paul considering there are 22 cases, it doesnt sound serious, but the concern mirrors what happened in victoria that got out of control quickly. Like victoria, the cases in South Australia started when a cleaner in a hotel got infected. She infected two security guards. 17 peopleinfected within 24 hours. The southern australia premier says most cases are a symptomatically are a symptomatic. Lets listen to what the premier had to say. We are going hard and we are going early. Time is of the essence and we must act swiftly and decisively. We cannot wait to see how bad this becomes. We must act swiftly and decisively to stay ahead of the game. Paul the conditions of this lockdown are tougher than what we saw in victoria in the middle of the year. Andrmarkets, medical shops petrols stations will stay open. Funerals will not be allowed to go ahead. Factories and construction also shut down. Shery how does this compare to the economic fallout we have seen in victoria . Paul victoria accounts for one third of australias national gdp. That lockdown went for well over 100 days. South australia counts for just 5 of national gdp. The lockdown is less than a week. The economies are smaller, but on the other hand a lot of states have been shutting off their borders to South Australia. That is a blwow for the tourism industry. Blow for the tourism industry. Shery more restrictions in japan as virus cases hit new records. What are we expecting . Paul we are expecting some measures to be announced in japan later today. It should not be too stringent according to sources close to the government. It will be along the lines of early closing of businesses. Daily case numbers there hitting 2000. Daily tokyo is a new high. Reportedfectures have daily increases. Officials are concerned young people are getting tired of social distancing and clusters have been appearing in Nursing Homes and hospitals. Japan is heading into winter as well. The government doesnt have the legal means to enforce a harsh lockdown. They are encouraging citizens to not go out. That is a similar approach to what was taken in april, and people largely complied. The hope is they will comply again this time. Shery at least it seems we have some positive news on the vaccine front. Pfizer and biontech saying their vaccine is 95 effective in Clinical Trials. The shot staved off severe cases and worked in older people. Isntechs ceo says he confident regulators will review the vaccine quickly. Trye know we will submit or to submit our documents on friday for the fda. We are already in submission. We have a ruling submission to the european regulators, so this is an ongoing process. Emily congratulations. We want as many vaccines as humanly possible. How do we know if the vaccine asymptomaticp transmission . We have indicators that the vaccine should be able to prevent infection, since one of the components of the immune system is the neutralizing entire bodies. We know our vaccine induces strong antibody responses. This has been known in preclinical models that this can prevent infection. We are going to collect indirect data showing how well the prevention of infection works, but this will require a few months. Is there going to be a longterm effect . The antibody response fades, but will there be a t cell response . Will the body have longterm memory of how to deal with this virus . We have created evidence for that. We analyzed the t cells from subjects who have been vaccinated before and after vaccination. Is after aboutd four weeks, the vaccinated people have strong t cell responses. Cells can eliminate virus positive cells. This is an important finding. The finding finds the t ell response ist cell higher after deceased. We know it infections can last for many years. We have one component of the immune system which is better stability than the antibody response. Can you give me perspective if you have had talks with other companies or other studies . What portions of the population we need, can you help me understand where you are in our process in that process . We have our protocol. It is very close to the Clinical Trial protocols that were used. For example, operation warp speed. There will be a way to compare the data from these Clinical Trials performed by different companies. This could also give you a good understanding of the safety profile of each individual vaccine. We have already published our t cell and antibody response data. Haidi that was the biontech tech ceo. We do have another full slate of names coming up from the Bloomberg New Economy Forum. We are hearing from bill gates, the imf managing director, the head of the w. H. O. You can follow those conversations online on the terminal and on the events social media channel. Next, Goldman Sachs raises for a new fund which will which it will call nontraditional deals. This is bloomberg. Shery Goldman Sachs raised more than 10 million for a new fund that will focus on buying stakes in private equity and comes amid increasing interest for secondary investing. How big is this strategy for goldman . The strategy is getting quite big for goldman. Fundis the firms eighth and the secondary business in the secondary business. They are not the only ones in the secondary business. There was a Record Number of money raised in secondaries last year. You have others boosting that business this year. Sizable for goldman. Differentiatethey themselves in this market where they are not the first . This is a business that raised records amounts of money. At the same time, you are seeing the business evolve. Limited numbers of private equity firms, private assets are starting to find a lot more liquidity in this secondary market. 10man shows up with billion at a time where more people are willing to offload. During the middle of the pandemic, goldman was able to spend more money, which kind of goes against the grain for deals during this market. People were afraid to spend during this pandemic. Goldman stepping up. Shery tell us more about that impact that this covid19 crisis had on the market. If you look back to 2008, there was a lot of concern about people had stakes people who had stakes in private equity funds. They needed liquidity. The secondary market at that time was not as big. There was a concern they would have to sell those stakes at a buy or sell price. During the pandemic we have seen a lot of jitters early on and somewhat of a freezing up. We saw the industry really jump back and do all right. Here you go again where there is a great search for yields going on. Investors seeking liquidity, but not at these depressed prices. Plus private equity firms that want to hold onto their assets for a bit longer and seeking partners like goldman to do that. Haidi speaking of things going well for the industry, we had at the start of the pandemic pledges that no job cuts would happen, that graduate hiring would continue. All of that looks like it is changing. That is for sure. Beatd our main goldman reporter at bloomberg break yesterday goldman is planning a new round of job cuts as stability starts to end. When you look at all the banks, they are looking to clamp down on costs. Goldman said in january it would cut more than 1 billion worth of expenses. Part of meeting that goal means efficiencies in headcount. Next year and this goes far beyond goldman there is a lot of pressure for the industry as many more job cuts are expected at citigroup and wells fargo as well. Our wall street correspondent in new york. Stay tuned voracova session with the black mark tuned for a conversation with the blackrock chairman at the Bloomberg New Economy Forum. Next, why bitcoins major rebound has taken a shine off gold as a potential pandemic haven. This is bloomberg. Haidi bitcoins rebound appears to be pitching against gold. Investors are wary of a pickup in inflation. The currency putting its price relative to gold at the highest in three years time. Lets get to our across Asset Team Leader joining us from singapore. This has moments of me thinking back to what happened in 2017. Is this different given the pandemic market we are operating in . It could be. There is a lot more institutional acceptance of bitcoin. We have more derivatives products. There is more awareness about it. It looks like there is a bit more of a foundation. It is moving less quickly upward than 2017, but it is still quite a rapid gain. Shery not everyone seems to be convinced. We heard from ray dalio that he might be missing something here. How is the thinking about bitcoin as an investment . There are people who are really for it, all in and love it. The Crypto Community has been very bullish generally. But there is still the argument that its an unproven asset. Some people say it doesnt have much value at all. There is still a lot of skeptics about it as well, particularly since it has only come up in the past decade or so. Haidi what about the role of Bitcoin Wales . They hold a large portion of holdings. This is interesting. You have 95 of bitcoin held by 2 of accounts. There are just a few accounts that hold almost all of it. They would be able to affect the price quite significantly. It is still a very concentrated asset the way other things like gold would not be concentrated. Shery great to have you on, cross assets team editor in singapore. Unilever ceo saying low Interest Rates and the need to create new jobs means it is a good time to invest in sustainable green technologies. He spoke about breaking the mindset that there is a tradeoff between Green Recovery and economic prosperity. It is unilevers profound belief that purpose and sustainability are a pathway to better financial performance. There is no tradeoff. We are seeing money that gets invested in green stimulus seems to generate a better roi than the more broad stimulus packages. It is the most important mindset to break, that there is a trade off between a recovery and economic prosperity. A lot of companies have already put out targets. How much will that trend be easier under a new President Joe Biden . All this change, like system changes, will require a collaboration between governments, companies and investors. It is governments roles to set the frameworks in which we operate. I would like to congratulate the british chancellor who set out the requirement for carbon disclosure reporting. Companies have to drive the innovation that will be needed to invent the Green Recovery. Of course the Capital Markets and investors need to invest in properly run sustainable and green businesses. In that regard, an administration in the biggest economy in the world that reenters the Climate Change debate is of course going to be good for the system. Carbon emissions are disclosed and mandatory around the world, would that make a meaningful impact to reverse Climate Change . Alan i think the things the government has to do are important. Disclosure is an important part of it, but can have unintended consequences. The most important thing government needs to do is get a price on carbon. Whether it is a cap and trade mechanism or some carbon tax, there is a role for disclosure, there is a role for labeling, but the most important step governments can take [inaudible] how much work do you do at unilever on products, containers that are recyclable . Alan most of the technologies for a greener recovery have already been invented. Low Carbon Energy in scotland, 90 of scotlands energy comes from renewable sources. Not a lot of solar, but plenty of wind. Low carbon transport, all of that exists. Now is a good time to invest with low Interest Rates and the desperate need for new jobs. Ceoy that was the unilever speaking at bloombergs new Economy Forum. Crown resorts fell the most by about a month since opening its new casino the the opening of its new casino in sydney was put back. The stock has fallen more than 20 this year as investigations revealed broader corporate dysfunction as well as governance failings. Moodys say that the charges relate to a state owned mining company. Haitong securities is one of chinas largest brokerages. A chinese social media platforms tumbled the most ever. The shortsellers says joys live service is guilty of bot farming, creating fake users. The report comes days after. Aidu agreed to buy yy bloomberg approached joy to get its response. Nvidia posting a 57 jump on the year before. Results blew past estimates given the demand for video games. Nvidia expecting revenue to come in this quarter at around the same level. Shery coming up, we hear from the blackrock chairman and Ceo Larry Fink speaking at the Bloomberg New Economy Forum in the next hour. Joined by al be ceo. The market opens in tokyo and seoul are next. This is bloomberg. Shery welcome to daybreak asia , from bloomberg World Headquarters in new york. Im shery ahn. Haidi im haidi stroudwatts in sydney. Our top stories this hour, asian stocks set to follow wall street down as the new curves to curtail surging virus numbers overshadow optimism for vaccine. Dollar trade at the lowest level in two years. Xi jinping hits out at unilateral action as washington ramps up pressure on beijing. He is doing to address rising protectionism at the apec summit. Platformcial media branded a fraud. The report comes after baidu agreed to buy its livestreaming. Shery the Bloomberg New Economy Forum continues today, convening Global Leaders to discuss a variety of topics. Today is about climate and peter brower is giving the opening remarks. We will have more from the event throughout this hour including a conversation with black rocks ceo in about 10 minutes. Ceo in about 10 minutes. Here Sophie Kamaruddin in hong kong. Stocks arean retreating from the record highs it hit on wednesday. Outside pressure for the nikkei 225 in the topix while the yen is holding below 104. 121ees a move towards 10 for the currency. Checking in on the mood in south korea, the government is to share details on its plan for vaccine supplies, the cult of provide gives this for 30 million citizens. The cost of losing point 3 . The korean won under some pressure as authorities flag they will take measures to stem volatility. We are watching Health Care Stocks in seoul which may fall on pfizer seeking to apply fda approval for its covert shop. Much economic the mood and wellington. Lets check in on the mood in wellington. The asx 200 snapping a threeday gain. Oil, gold, copper slip early in the asia session. There is they start of a structural bull market. S p eminis pretty much flat. The hong kong dollar relatively unchanged. We are seeing some strength coming through for the currency as share sales are in the mix. Shery. Tory investors turning worsening coronavirus numbers across the globe that are forcing stricter measures from governments. Lets cross to mark cranfield. Optimism,ccine cyclicals rallying, especially in asia. What is going to happen now as we continue to see this resurgence in Coronavirus Infections . Mark the closure of new york schools will come as a bit of adult to risk sentiment in asia, particularly given it has been a pretty good month for asian equities and currencies so it would give traders a good excuse to take some of their chips off the table and move aside. I think the fact that the situation in the United States is not improving and it is prompting a big city like new york to take such drastic action will certainly come as a wakeup call. We also saw yesterday in tokyo, they had a Record Number of virus cases and they are tightening restrictions so its coming back to haunt everybody, the fact that this pandemic is not going away and there is still issues to be dealt with even if a vaccine is coming it will be a while before that will affect them. It would be surprising if asia is not a bit defensive today given the news in the past 24 hours. That does not mean to say that asia cannot continue to decouple from the United States over the longer term but certainly, with the gains we have seen, it would be surprising if we dont get a down day today in asia. Haidi the dollar trading at the lowest in two years. Does the rise in cases in the u. S. Really kind of give another pause to those who thought that this was the low we were seeing for the greenback . Mark so much of the direction for the dollar in the months ahead will be determined by what happens with the chinese currency. Really, if you think back to the time when the u. S. First started to impose tariffs against china in 2018, really since then, the Dollar Yuan Exchange Rate has started to become a most significant Exchange Rate for the Foreign Exchange market and where that goes is really a big factor for where Everything Else follows from there so the fundamentals are shifted clearly now back in favor of china. Its economy is doing so much better. Its Monetary Policy is relatively tight compared to the United States. The Bigger Picture is the yuan probably can still get higher in the months ahead but we will probably see dollar yuan well below 650, maybe heading towards 6 48 that will help to drag the rest of the currency world with that, particularly the asian currencies, which have been tracking that closely. The Bigger Picture is the dollar property has more downside. There might be a shortterm correction to that given it is pretty oversold for now but the yuan is really the one that determines where we go from here and it still looks as though it is a strong currency. Last last month shery month, we are talking about policy makers in china trying to reign in the currency. We have not seen those moves in november. Why is that . Know,i think that they for one thing, they are fighting against a very strong force. The share of trading in Global Markets for the yuan has risen substantially. Its really a g10 currency. There is a bloomberg story saying hsbc recognize it as a g10 currency at a lot of people already saw it that way so one thing, the pboc will be fighting against huge daily flows in the financial markets. They have to decide how much money they want to use of their own to fight against that. Also, the u. S. Election is unresolved. They would not want to be seen to be interfering heavily in the Foreign Exchange market around the time when the u. S. Would be watching them very closely so those factors certainly are part of the issue. Also, they conceive themselves that more money shifting towards asia and towards china, its really a question of do you want to accept those inflows but may be moderate the pace or do you really want to go against it . Fighting against the Foreign Exchange market is not an easy thing to do even for a country as big as china. It is a very difficult job to change the direction of your currency. From goldman,d saying we are at the start of a structural bull. Are there expectations that we are going to see some more of this kind of cyclically strong narratives play out when it comes to commodities . Mark yes, of course, as we get hopefully,nd the Global Economy is in a much stronger situation than it was in 2020, we are going to see more countries participating in growth and that has to be positive for commodities. Extent leading the way in that. There will be a resurgence around the world. Certainly, the cyclical upturn in commodities could be quite significant as more countries start to expand and get back to a healthy track. Mark mliv strategist cranfield with his views on the currency market as well as the broader commodities and stock market. Lets check on what sharp is doing in tokyo after means it is replacing kokomo on the nikkei 225. Atare seeing sharp rallying, one point rising as much as 8. 5 . We know sharp will be added to japans index, replacing entity be part ofch will Telecom Corporation and this change taking effect december 2. Here are the first word headlines. Reported virus deaths in the u. S. Have topped a quarter of a million, and rising infections are forcing new york city to close schools and return to remote teaching. U. S. Regulators have given the goahead for the first covid at home testing kit as infections search surge. System costsult around 50 and users will need a doctors prescription. Australia is in virus lockdown with the toughest curbs yet to tackle infections. It came in at midnight local with all schools, restaurants, and nonessential shops closed. Local people are not allowed to leave home to exercise and also to travel regionally. Weddings and funerals are off. Masks are compulsory with authorities saying they must stay ahead of the game. We are going hard and we are going early. Time is of the essence and we must act swiftly and decisively. We cannot wait to see how bad this becomes. We must act swiftly and decisively on the Health Advice to stay ahead of the game. Shery china says it is confident about the state of the economy despite surging virus numbers in key foreign markets and a looming global recession. Li keqiang says the mainland economy will likely grow this year despite difficulties and will probably surpass 15 trillion. He told the peoples daily that china shifted from a stage of rapid growth to one of high quality development. Those are your first word headlines. Haidi the Bloomberg New Economy Forums discussions revolve around the topics of Climate Change and green investment. A key challenge for our time. Lets listen into the conversation with the special advisor on Climate Change affairs at Chinese Ministry of ecology and environment. Work together. Global growth will definitely be achieved. To meet chinas new Carbon Neutrality goal, china will have to actually decommission existing coalfired power stations. Yet more are being added all the time. In fact, the pace of approvals has accelerated this year. To understand this apparent contradiction . President xis Carbon Neutral target of 2060 was actually oflowed by a specific target the peaking of the Carbon Dioxide emissions by 2030 so these two goals will serve as a check in effect. It will accelerate the transformation of our energy. How do you explain the fact that from january 1 to june 15 committed 17 china gigawatts of new coalfired capacity for construction, which was more than the amount 2018ted for the whole of and 2019 put together, which was 12 gigawatts . A lot of people think this is all about chinese provincial governments trying to deliver shortterm economic stimulus. Is that correct . This year, we witnessed the outbreak of the covid19 epidemic, which caused great losses to the economy in all the regions in china. I believe now everyone is busy with their local economic recovery. New power plants are being considered or planned, as you have observed, but so far, they have not been dealt. That some newssed power plants are being approved. We have also been and we are the working to phase out older or obsolete power plants, the ones with the higher emissions. You know that since 2005, china has phased out many power plants. Kilowatts ofion thermal power plants. Of these ally plants have been illuminated, the new plants eliminated, the new plants have been dealt to meet needs. Advanced technology. Even so, i believe these conditions are only temporary and i believe chinas chief you are a key figure in narrowing differences with the United States that allowed the paris climate a court accords to go ahead. What other prospects for u. S. China cooperation on climate in the future where do you see Common Ground . The United States is a very important country in the area of Climate Change. In the past, the cooperation between china and the United States has played a very Important Role and made an important contribution to the multilateral process. The two heads of state issued four joint statements on climate a fundamental, important, and outstanding contribution to the Paris Agreement. That is a very important point. However, when the Paris Agreement came into force, the United States withdrew from it and left us and all the other countries around the world disappointed. Even though the u. S. Withdrew at the federal government level, china and the United States maintained Cooperation Among provincial governments, enterprises, and think tanks. And even the american aretiation teams maintaining close communication with the chinese teams. I should say that we welcome i am afraid we have run out of time. Minister, thank you for joining us today. Andppreciate your candor insights. Thank you. Thank you very much. That was the special advisor on Climate Change affairs. Speaking with Bloomberg New Economy Forum editorial director and we are more big names coming up later from the Bloomberg New Economy Forum. We will hear from delegates, the imf managing director, the head of the who, and modernas ceo. Follow those conversations online, on the terminal, and on the social media channels. We will also hear from larry fink on Climate Change from that form, plus do not miss our exclusive interview with the head of southeast asias biggest bank, dbs. It has been a good news story. Thisuest joins us later hour. This is bloomberg. Shery lets head back to the Bloomberg New Economy Forum, where larry fink is speaking to David Rubenstein. That. Are starting to see you asked the framing of the esg. Even companies and hydrocarbon industries, those companies were more and more focused on esg strategies and stakeholder capitalism. They are trying to get a higher one than companies in denial. We are seeing a reallocation of capital within industry, companies and industry, that we are seeing capital moving towards more and more of these companies in terms of performance. It is being validated by their profits this is a long journey. Im not here to suggest all companies that are totally focused on esg or stakeholders are all going to be perfect and we are going to have to see, are they keeping to their commitment over a long period of time . In the last few years, as we have evolved, the purpose of a company, as we are now raising questions, what is the true purpose of the company, you raise the purpose that is profitability for your shareholders. I think that is evolving and changing. As that purpose is evolving and that focus towards your clients, your community, especially in a deep globalized world, we are seeing more and more evidence that the best companies with those factors, in each of the areerent industries, they outperforming their peers and i think that will continue. Your company is the largest money manager in the world and when he started the company in the 1980s, operably esg was not as big a factor as it has become. So as you are looking at other companies on esg factors, what should somebody look at you at and say what you are doing that is good for esg in terms of a Large Company that you run . Arey i have to ask myself, we doing what we as other companies to . To do . We better be doing as much if not more. I think this past year, i asked more and more companies to report their update. Are moreporting and and more transparent towards this. Rankings are quite high. We are evolving and changing. We are not perfect. We make mistakes. We are evolving. We are trying to work on our diversity metrics at blackrock. Our compensation metrics are strong across the board, but where we were weak and some of our issues, we were not placing some of our women in the highest paying jobs at blackrock, and now, we are trying to evolve that. We are doing a lot more prescription in terms of navigating blackrock to do what we are asking other firms to view and i would say we made a lot of progress for that. It would be a responsible if blackrock is asking other companies to do something and we are not doing it so i would frame it that we are as focused on these issues as any company. David after the results seemed to be evident to most people a day or so after the recent president ial election, the stock market went up quite nicely, in the view of many people. Was that because the country wants divided government . You have a democratic president and it seemed at the time, a republican senate, and it may turn out to be a republican senate. Do you think the market actually likes the bride and government or the fact that the democrats did not control the senate and their agenda . For some people, is not likely to be implemented. Is that why the markets went up . Larry the markets like a divided government. They want to make sure theres proper checks and balances. We have seen in the past, when we have a government that is totally controlled by one party, we have we have seen more extremes in terms of positions that they have made. Government,ivided but also i do believe strongly oft the market is in desire more stability, of less volatility. They are looking for a voice that moderates, not a voice that insights. I truly believe president elect biden can be that voice of reason. It can. If we all listened to his speech last saturday where he was talking about one america, not a red or blue, i think the marketplace is encouraged by having a leader now that is more inclusive, a leader that could probably bring a little more global harmony. I think we are all tired. We are tired about all the volume we hear out of washington, very tired about covid. And we are worried about where we are going right now in these we areweeks, and so, looking for a new leader to help us navigate covid and moving forward, we are looking for a leader who has a stronger opinion on climate and is willing to work with the world on moving it forward, both in climate and all other global issues that are facing our world today. David lets suppose president elect biden is watching you now and he says this seems like a person who knows a lot about the markets and he seems to be favorable to me, so maybe i will call him up and ask him his views. If because you and says, larry, tell me the two or three most important things either in the transition period of time or early in my administration, what would you recommend that he do . Larry i would recommend him not talk to me now and just get his staff just get his administration in order, his cabinet in order. If he still insisted on talking to me, i would say i said this loudly even in front of the Trump Administration in 2016 if we want to create really good jobs in this world where we are focused on jobs and we are thisg a huge transition in covid world and postcovid world where jobs will be moving from one industry to another, i truly believe we as a country, more than any other country, we need a strong infrastructure bill right now. We have 2 trillion of deferred maintenance. One of the first things i would be telling a president , he should make a statement that every american will have broadband. What we have learned in our covid world through the use of media and videoconferencing, we are doing more and more work from home, we are doing more and more education from home, we are actually having more conversations with our medical support, our doctors, from home, and for those homes that do not have broadband, we are creating a greater and greater economic bride. We are living in the worst recession in our lifetimes because of covid. The impact on the recession is far greater on the low income workers. We are more reliant on home education, and so many components of our society are not part of that, so i would urge our new president , but i would urge every government to make that pledge to all their citizens. Having broadband in every home and equalizing technology. We are already witnessing that technology is a great divide in the world between developing countries and developed countries, but technology is becoming the greatest divide between different parts of our society and we need the infrastructure. We need to be developing broadband as we roll out 5g, but 5g is not going to be rolled out to every part of the country. Its not going to be rolled out. We have to have something with a public support if we are going to roll it out throughout the country and that everybody, from somebody in the city to somebody in a very rural area, they have to have taxes so they can have the ability to have an equalizer opportunity. David larry, the markets are assuming, i believe, that a stimulus bill, at least 1 trillion will pass in the lameduck and it may be another stimulus bill will happen early in the admin assertion. If there were to be no stimulus bills of size, do you think the markets would take a very bad reaction to that . Larry i would take a very bad reaction. But probably. I think we, as an economy, most developed economies are over reliant on Monetary Policy, and we are heavily because of Monetary Policy, we have seen great support to the Capital Markets, and we have all been benefiting from that. If we want to create a more equalized economy, we have to be targeted fiscal stimulus. If we are just going to rely on Monetary Policy, that is another example that creating more and more income inequality because those who own equities, those who own Financial Assets are generally wealthy people. The poor do not own Financial Assets. So the divide because of the strength of the equity markets and the job losses that we have witnessed has really created even more of an income inequality. I am fully supportive of Monetary Policy so lets be clear. I believe what jay powell and the Federal Reserve have done has been nothing but amazing, but if we are going to try to really rebuild our economy, we truly need a very targeted fiscal stimulus, for those who are unemployed. We need to do fiscal stimulus for some of the cities that are most impacted, and i do believe a targeted fiscal stimulus is going to be in order to really begin a more equalized economy and that is going to be essential for the biden administration. David if we do have a seamless bill that is significant, that will increase the debt. Its already 27 trillion in the annual deficit and the annual deficit is in terms of money we are barring right now. Borrowing right now. Why are the markets not worried . Larry i would say we should worry about it but its not a major issue today. We are not seeing inflation. If anything, you can see from the private equity side, from the full alternatives in liquid markets, that theres actually a shortage of highquality investments right now. Say the markets are correct in not worrying about the deficits today. What we do need is, through stimulus, we need to get growth going. As we get growth, then this northt will ultimately be of 30 trillion. These deficits are going to have less impact. We have a broader, larger economy. If we cannot find a way to create growth in the coming five years, then we are going to face the impact of this rising deficit. At the same time, in the next five to 10 years, we are seeing an aging global population, especially from japan and china. They are going to go from savers to spenders as their population becomes older and they are retiring and they are going to be utilizing savings for living in retirement. This is going to be a problem if we do not find growth. Suppose the president elect sees this interview and says this is a very smart man who has built the largest money manager in the world. I need him as secretary of the treasury, head of the world bank, head of some other major part of the federal government. Your response would be what . Larry thank you for that honor, but i am very happy at blackrock. I committed to my employees and my board and to my family already, im staying in new york for the time being. David ok. Larry, thank you. Fink that was larry speaking to David Rubenstein at the Bloomberg New Economy Forum. Singapores biggest banks have remained resilient during the pandemic, beating estimates. Joining us now is the ceo of southeast asias biggest bank, dbs groups piyush gupta. Great to have you on. Thank you very much for your time. We continue to see this resurgence of virus cases around the world. How long do you expect to remain resilient . Last time, you said business momentum has improved. You saw a pickup in credit card spending. But for how long . Piyush well, you have got to aalize that there is frankly bifurcated situation with the virus as we speak because most of the countries in east asia are actually doing ok. You are not seeing a massive resurgence of the virus in most north asian countries. However, we have a footprint. And as a consequence, you are beginning to see activity pickup , and it started picking up in the third quarter. It has continued to stay strong so people are out spending. You cannot get a restaurant anywhere. Still flagging is the crossborder business so travel is slow. Even with the air bubbles coming up slowly, i think you will see a pickup. View on how bad things get has not changed over the last six months. We made an estimate earlier in the year on the kinds of companies and industries which are likely to be more vulnerable. Frankly, that has not changed materially from the beginning of the year to now. Shery you are also growing your footprint in india, which has not done well raining in the pandemic. You are taking over a failed bank. Why are you doing this now . Did the rpi approach you for this . How our b. I. Approach you for that [crosstalk] piyush sorry p it i did not get that. Sorry. I did not get that. Shery what are your plans for india . What is the broader picture here . India have plans in been consistent. In the emerging markets, you need to go through cycles. You are going to play the long game. We believe the three big countries that matter for dbss future in the region are china, it indonesia china and indonesia. Expansionulk of our is organic and is driven through the gel and electronic banking strategies but we found it beneficial in all the markets to be able to hold on to where we get a good opportunity. We did that with anz assets and with the rbs assets in china. To growicious mix digitally, but recognizing that its the physical strategy. That appears to be what guides us. Do you see dbs india as a listed entity and do you see it impacting the dividend payout . Whollyownedts a subsidiary that will continue to stay a whollyowned subsidy. It has the capacity to be able to in the country. Of thelook at the scale deal, it is very small and the big scheme of things. In the big scheme of things. Haidi you recently received Regulatory Approval to set up a firm in china. Can you tell us about who you are potentially partnering up with and what are your plans in that market . Piyush we have an application in the final stages of approval. We are partnering up with a couple of local partners. China are, like i said some time ago, we are very bullish on trying to grow in the big countries in our region, and china is, without doubt, the head. They are still in multiple kinds of ways. Outside ofnly place major markets in singapore and hong kong. Explore a big part of the capital market. Is nascent and developing and i think there is an opportunity to build out that but thats not all. There is also a focus on countries to build up companies to build up a greater presence in the bay area. Supply chains are coming out of that. Youre looking at expanding in the Consumer Finance space. We already had a small entity, a small stake and entity with the bank, but we are looking at seeing how we can scale up businesses. Working with Chinese Companies as they expand overseas continues to be the mainstay of our chinese strategy. Shery you are also expanding when it comes to the crypto world. You are going to set up a Digital Exchange in singapore. Tell us a little bit more about your plan. How does this make sense for you in your banking business . Piyush once again, it is a work in process. We dont have any Regulatory Approvals at this point in time so i would rather not comment on it. Haidi i wanted to ask you about your views on what has happened at ant financial, the regulatory dressing down, the pushback of the ipo, the changing of the regulatory landscape in china and more broadly in asia. What are your thoughts on this . Does it make you want to be more conservative in the simtech related space, particularly in china, but also with the digital push in singapore as well . Piyush actually, not at all. To me, the fact that over time, you will start getting a more level Playing Field. Therefore, we start getting proportionate and even regulatory responses in the market. Whether the technology they are Technology Companies or banks. View has been that many Technology Companies have been able to benefit from not having the same revelatory regime as the overhead that banks do. As you get to that stage, is helpful to us. Its also helpful for the development of the market and for the consumers at large. Otherappened in industries. Pricing allows halloween out of markets and monopolistic hollowing out of markets. Trying to build the guardrails sensibly, trying to make sure that you dont wind up in a situation which encourages monopolistic outcomes, its actually a good thing. Compete with new companies coming into your field even though you are saying that potentially level the Playing Field is on the cards, but how bad already, how competitive are you against them battle ready , how competitive are you against them . Piyush theres nothing about anyoneogy which makes can leverage technology. Banksis no reason why like ourselves cannot create the same kind of capabilities and customer experiences. We believe that we are fairly well advanced. We have been recognized as the Worlds Best Digital Bank on a few occasions, the worlds best bank, is testimony to the fact that our customer experience, customer products, capacity to is data, digital, etc. , fairly welldeveloped. Competition is always always a challenge. It does not matter whether they are a new technology player. You have to keep adapting to new competition. I would also say that where we are today, we recently are confident that we have what it takes to compete. Haidi we are seeing adaptation and change as being necessary and the workforce as well. He recently said you would let employees work remotely up to 40 of the time including job sharing roles or schemes as well. My question going into office space, do you need all that office space . Do you envision needing to keep that physical presence . Piyush i think the office space of the future will be somewhat fun and i think the footprint will be smaller. Will get people to come to office to a large extent through collaboration and celebration. We will have more stand up space, open spaces, etc. We will also have more distributed office presence. They will have presence in the even using our own brand. When you put all of that together, i would imagine that all of the next five to seven years, overall, a realistic footprint will be a tad risk smaller than it is now. Shery what about your headcount . Piyush i think if you look at the nature of work and the nature of jobs, that is dramatically shifting. It has been shifting now for the last decade, five to seven years, so while we have operators, overall headcount has continued to increase because we have been adding people and technology in digital and analytics, etc. Part of the workforce is changing which is why a big part of our announcement two days ago retentionremendous to rescaling the workforce. We have an aggressive agenda to descale people over the next three years. Ae workforce might change little bit. I think there opportunity to bring in working moms or people who are working from home, i think that will improve a lot, will see a you shift in the workforce for sure. Haidi right, and that shift on wall street, after starting the pandemic with an assurance to keep jobs, we are now seeing job. Uts it is that kind of restructuring something that is inevitable in this part of the world and for dbs as well . Piyush well, you know, and our case, we dont expect to have a retrenchment program. People are tired and will move on. We will be able to get to the workforce profile that we need. But you know, for the industry as a whole, over the next decade, its conceivable that there will be largescale job losses across the region. Appreciate your time with us, dbs group ceo, piyush gupta. We have another big interview coming up from the sidelines of the Bloomberg New Economy Forum. A ceo will be joining us at 10 00 a. M. In hong kong, 9 00 p. M. If you are watching in new york. You dont want to miss our exclusive interview with the atlanta fed president , raphael bostic, on friday. We will be focusing on how the rise in virus cases is weighing on the economy and disproportionately affecting minorities in particular. We are just getting news across in the last two minutes or so on the Australian Labor market. We are seeing fulltime employment change for october, 90 7000 jobs added to the australian economy. That is against expectations. We are also seeing parttime employment jumping by just about 82,000 jobs as well. Again, much better than expectations. Of course, some of these forecasts could have been skewed by the lockdowns and victoria and melbourne, and a lot of these forecasts would be questionable given the nature of the neighbor force labor force in australia. Participation rates coming and higher as well, 65. 8 , and that overall employment rate holding steady. A little bit underwhelming, at 7 . That total implement change of almost 180,000 new jobs, better than expectations, clearly, of a contraction of almost 28,000. Lots more to come on daybreak asia. This is bloomberg. This is daybreak asia. Becomingork subway is a highprofile victim of covid19. The mta warns of a 40 cut to services and the loss of almost 10,000 jobs in train and bus lines at the federal government does not offer more aid. It says fares and poles in the metropolitan area will rise. The cuts could mean a quarter of bus routes will go while peak time Commuter Rail services will be every halfhour or even hourly. International Olympic Committee and games organizers in tokyo say they are planning a smaller, safer, and more lowkey event next year. Encouraged tobe leave venues as soon as their events have finished and latenight parties are banned. Officials announced widespread testing at the with sports men and women encouraged to take any new vaccine. Hsbc is offering hong kong staff greater flexibility to work remotely, allowing employees to work up to four days a week from home. A memo seen by bloombergs as the bank wants to become more flexible in how it operates. The cfo said last month, the more revoking more Remote Working could reduce office costs and some say staff will ultimately work from home about half the time, even after the pandemic. Trudeau is being told to make his make up his mind banning huawei in the 5g rollout. Lawmakers have given him 30 days to make a decision and also come up with a strategy to combat chinas intimidation of canadian citizens. The nonbinding motion was passed in the ottawa legislature with the support of some of Justin Trudeaus own liberal party members. Those are your first word headlines. And four keys. Allies including australia and the u. K. , have released a joint statement condemning chinas actions in hong kong. The statement reiterates serious concern over it says beijings actions are a clear breach of its international obligations. Jodi schneider is here. We are likely to see her reaction from beijing to this statement. Jodi we think we will. It was a pretty unequivocal , mike pompeo saying the u. S. Stands with u. K. , australia, new zealand, and canada, in calling out chinas disqualification of the elected hong kong legislature, saying its a clear breach of its international obligations, going on to urge china to live up to its commitments and duties to the people of hong kong. This of course is in response to the decision last week by chinas top legislative body to impose a patriotism requirement on all lawmakers in hong kong, everyone in the coke, and as a result of that, it disqualified for city members of lecture the remaining opposition members and others went ahead and quit as a result of this. Ruleeffectively oneparty in the legislature, which has been operating pretty freely with that. This was clearly a response to that and this is the kind of thing china in the past has not to react to, not to engage in. Its a matter of tim chinese domestic policy. Shery we have seen xi jinping hit out at unilateral to sayns from the at the apec summit . Jodi we expect he will be talking about this whole international cooperation. Earlier this week, the chinese Vice President called for global solidarity, to shift away from protectionism. Beijing is looking ahead to what is going to happen with the new whatdent, joe biden, and they will do is in the prospect of a new administration. While we dont know exactly what he will say, we think it will be along these lines and preview to we dont know whether President Trump is going to address the summit. Left Robert Obrien to represent the u. S. At a separate gathering last week. Heatedse, we heard very statements from mike pence. Been sharpre have barbs to be traded back and forth. We dont know if President Trump is going to address that at all. Shery Jodi Schneider there. Lets head back to the Bloomberg New Economy Forum, where we will s ceo andhoneywell ce others discussing the road to a low carbon future. As of january, vowing to get back on track with the carbon e carbon icing d carbonizing the u. S. Economy. My concern is speed and scale and we are far from speed and scale that we need. Thank you very much. A very positive note. Ins very nice to hear that your overall assessment. Mentioned the community carbonize weot to de are fortunate to have ceos with us. How can we help . Please. Do is first thing we can to do it with a system of suppliers, integrators, people who work with us. Become mmitted to by 2025. Byually, Carbon Neutral 2004. To be net zero by 2030. Journey, in all that our numerous suppliers in the ecosystem. The second point is we need to focus on technology innovation, Carbon Solutions for decarbonization. Solutions do exist today. 1. 5 trajectory. We have already all the ingredients to really reconcile progress, giving access to energy to everyone on earth, withing that trajectory the 1. 5 degrees. Hugeor that, there is a disruption taking place at the moment, which is digitization. The First Episode of digitization was about people to one is so the second about how we live with our environment, in our homes, in our buildings, in our cities, in our factories. To zation gives access inefficiency. The second point is electrification. Electricity is the only way to decarbonize production of energy, based on low carbon and increasingly, renewables. It is politically acceptable. If you couple savings due to digitization, you can do it with a high level of the secular economy. Uncouple it with electrification, which would double in the next 20 years. That means as much investment in electricity in the next 20 years to the beginning of 2020. Thethen you decarbonize electrification by going to renewables, low carbon electricity, and then you have recognizesn that progress on sustainability. On making the decision now because every decision we make does count, every decision we build today will be built for the next 40 years, every factory, every next 50 years, every factory built today will be in the next coming decades so every decision we make today comes in the future. Thank you. Honeywell andf Schneider Electric talking about the transformation to a Carbon Neutral future. You can keep watching that at online go. Ont miss out for more later thursday. We will be hearing from the alphabet cfo and others. Over toe handed Bloomberg Markets, the china open, take a quick look at how markets are trading at the moment. A pretty muted session in the asiapacific after we had u. S. Stocks at their lives. The revival in new virus cases to do with a vaccine. The nikkei 225 off by. 5 . The dollar trades at its lowest in about two years. Thats it for daybreak asia. Our markets coverage does continue, next. 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. It is 9 00 a. M. In beijing and shanghai. Welcome to Bloomberg Markets china open. I am tom mackenzie. I am Rishaad Salamat it. We will count you down to the start of the trading day on the chinese mainland and in hong kong. The asian markets facing the end of their longest winning streak since 1988 as virus curbs overshadowed optimism. Msci engage of retail