Upside. Looking at commodities. Crude moving to the upside. A big move to the downside with , on the vaccine and signs of Economic Growth in the u. S. Particularly helping people not to look for havens or avoid havens, get out of them. Gold down half of 1 . Bitcoin surging up again, it has above 18,500. Juliette lets get the first word news. The head of the u. S. Government Coronavirus Vaccine program says results of trials by astrazeneca show encouraging signs it may help block the most severe cases. No one given the vaccine developed severe covid, while 16 people on the placebo debt. He called the results excited. Nine, reports 70 process astrazeneca report 70 success. The centers for Disease Control a model shows weekly u. S. Cases and deaths rising every week for at least the next month. Italy is the Second European nation to report 50,000 total fatalities. The u. K. Is extending lockdown next week in favor of even tougher regional curbs. Reports from washington say the Trump Administration is raising the stakes with beijing, naming 89 Chinese Companies it aims to borrow from u. S. Technology due to links with the military. A playmaker is among those maker is among those listed. Beijing says it is oppression of companies without cause. The u. K. Government is considering a ban on 5g equipment from huawei as soon as next year to appease mps calling for tighter restrictions on the chinese telco. The conservative party are demand and strict rules on Companies Using huawei components as part of the price of backing new Telecom Security legislation. A blanket ban on the 5g equipment is set to be enforced in 2027. Qantas plans to become the First Airline to demand vaccination proof of four passengers will be allowed to fly. The ceo told channel nine the woulduld become jab become essential for International Travel when one becomes available. There is an app being worked on that would help demonstrate virus free status, a mr. Push for socalled virus passports. Be the thirdng to space agency to bring back rocks from the lunar surface. If the mission is successful, it will be the first time in four decades that moon rock has been collected. Only the u. S. And soviet union have brought back samples. The time on the surface will be limited. It lacks the technology to survive on the moon at night. That is the first word news. Rishaad no surprise but a big leaf for many that the u. S. General Services Administration has acknowledged joe biden is the apparent winner of the president ial election and President Trump has called on his team to cooperate our cooperate. Our editor Kathleen Hays has more. What is next as the transition of power is free to begin . Get thes first step to transition going what are the next steps . Kathleen its an important step and is not just about what happens in a democracy, one person loses and the other wins. The loser says ok i hand over the reins of power. Its also important in practical terms for joe biden to be officially told you did win the election because it will give him and his team access to current officials and office, very important briefing books. About 6 million in funds to help with the transition before he gets to the white house. There are very important pragmatic, practical issues as well. Emily murphy, the current head of the gsa, was sort of dragging her feet, doing Donald Trumps bidding. Today she said we made this decision because there was progress on legal developments, legal questions that allowed us to say yes, you can go ahead and get your resources and we will get the ball rolling. Donald trump said he told ms. Murphy to do what needs to be done. Now he is telling his team to do the same. He says our case strongly continues, we will keep up the good fight, and they will prevail. Made, ms. Murphy says she the decision independently based on law and this is what happened. Keyappens too after decisions in michigan and pennsylvania, big battleground states where trump wants a recount or wanted them to turn over electoral votes. They did not do so and that was one of the key things that put biden in this position. And of course some key republicans including Lamar Alexander and others, in the senate for years, saying it looks like joe biden will be the president and it is time to move ahead. Perhaps that made a difference as well. From ms. Murphys point of view, it is the fact, the law, and she is obeying it. Juliette more women are headed to the white house. Talk about joe bidens pick for treasury. Yellen lookset like she will be nominated by joe biden to be the first woman as treasury secretary. Another feather in the head of a woman with many accomplishments been why is she so attractive to joe biden . Many other people were being looked at. She was at the fed during the great recession, the great financial crisis. She has been through a crisis, she has been through digging out a big economy out of a large hole. Thats one of the things that looks good. As very dovish, wanting more stimulus, someone who can collaborate with the fed. Look at her resume, she has been at the fed for years, she knows everybody and knows the institution. Could there be a better way to have the treasury secretary and fed chief hold regular weekly meetings and hammer things out and move ahead, then some one who has been governor and vice chair, fed chair, president of the San Francisco fed. She got through two bipartisan votes, which is an issue because the senate has to confirm her. She pass muster does muster . Does she have enough goodwill on the republican side of the aisle . Also, shes been a bloomberg the world and knows the finance ministers and central bankers. When she walks in the room, the relationship is already there as she has to work globally to get things done. Whether you are a big fan of hers or not, you know she is accomplished, you know she can get the job done, you know she is always working hard to do that. U. S. Bankingfamous analyst at wells fargo, inc. s it is important when you look at the question of being tough on the banks, she transcends probank versus antibank, she is more pragmatic to make sure banks are healthy, dont take too many risks, make sure they can get through a crisis and keep credit flowing. She has not been involved in Financial Markets like some of the other picks might have been, she has certainly overseen them and i think it is interesting that this is the woman that joe biden picks, but apparently theres a lot of support out there for her. Juliette kathleen, thank you so much, our economics and policy editor in new york. Give ahead, jp morgan will an outlook for some of chinas Biggest Internet Companies as they learn to live with new antitrust laws. Alex yell will tell us what the Retail Sector says about health of the economy. Rishaad thats later this hour. Just ahead, we talk with advisors about why u. S. Equities and chinese bonds are in favor ahead of asiapacific macro strategy. This is bloomberg. Asian stocks trading higher in the morning session today, driven by the General Service administration acknowledgment of biden as the apparent winner of the u. S. Election. With election uncertainties out of the way, risk assets can look ahead to the policies that will come with a Biden Administration. Thats get so analysis now some analysis now with our guest. Great to have you with us. We start to see the Biden Administration forming and we heard that janet yellen will be the pick as treasury secretary, which brings us to the question of the day how do markets price yellen . Markets will be quite supportive of this move, to the point that was made in the report earlier. She is a known quantity, no real surprise there. I think the way markets are looking at it is twofold. Purely a is that from markets perspective, biden could have chosen someone less favored by market players, someone more interventionist, someone a little more empty wall street. There is no suggestion in yellens recent history that she has any real agenda against wall street. I think it will be seen as a fair hand to the extent she has International Experience and i think that is fine. There is a second issue, probably worthy of deeper analysis and it will take a little time to see how this will filter through. Economiste labor returning, and now you have the buying and Biden Administration, a democratic administration, and someone at the treasury clearly has a vested interest in labor economics, that will start to get people interested in the potential fiscal impacts and what policies the treasury can push through and the implications that will have pit eventually we will talk will have. Eventually we will talk about inflation again someday. Markets are saying this is another notch toward highyield, so we will see how that plays into risk and the dollar Going Forward. Juliette and in terms of equities. We also have vaccine optimism. You still favor u. S. Equities. Continue inentum the rotation trade, and we are getting big calls on what the s p 500 will look at any years in a years time. Dwyfor to the point that you have yellen at the treasury and you have pressure at the long end, i dont want to overestimate that because we dont have inflation as such. Expansion ly is policy is expansionary fiscal policy, you will see some pressure on yield. In absolute terms and might be very little, but in terms of percentage change, it might the a lot. That will certainly have some pressure on the bond markets potentially. Atthe same time, im looking rotation into equities, so looking at asset markets, equities still looking very well favored given the story on the vaccine, the fiscal expansion, the continued very accommodative Monetary Policy situation. That all seems to back up the equity markets more than the bond markets. So that rotation into equity is something we are expecting, especially in the u. S. In 2021, we think that will be a key asset class tour in 2021, that into equity. And what about in terms of Commodity Markets . We have oil and an eight month high and there is vaccine optimism but at the same time, every time it looks like we are closer to a return to travel, it seems to stop. Do you see normalization for the oil market in the next six months or so . Dwyfor it depends on a number of factors. The vaccine and normalization of travel will be one factor. I would not underestimate how important it will be once we get into a new u. S. Administration, policies on the middle east, particularly policies on iran more important swing factor. I think there are number of potential issues for 2021 around the committee commodity market. The middle east probably has more of an impact than we are currently pricing in. Betweene normalization u. S. And iran and we go back to the relationship for five years ago before the Trump Administration, a lot of the risk premium out of Commodity Markets could be taken away, in which case there is potential upside for commodities. Components and also the critical element at the beginning of next year. It looks more optimistic giving given the relationships between a Biden Administration and iran and europe as well. A lot of factors on commodities. Rishaad a quick word on inflation, we have seen 10 year yields creeping up. Are we discussing the return of inflation far too much and where would it come from . Dwyfor it depends on who you are talking to. Ive had this conversation a few times in the last couple of weeks and some are arguing we really are underestimating hence a strong call summer making about fixed income Going Forward and some are making about fixed income Going Forward and fixed income being overextended. We dont see that, we have internal metrics where we look at alternative inflation sources and we are not yet seeing inflation. One thing to be aware of in 2021, the First Six Months of next year, we will get a lot of odd data when it comes to inflation because of the 12 months calculation. We will see spikes in inflation because of how weak inflation was in q2 this year. There will be a bigger debate on inflation next year. We are not yet seeing an inflation spike, not yet factoring in the return of inflation, that i think as we go through next year, if we get more policy shifts and more expensive fiscal policy, my suspicion is we will talk more about inflation, and the question i came back to early on will become a greater factor. Not an issue for now but i think it will be discussed in a lot more debate and a lot more scrutiny toward inflation next year, but not for now. We will leave things, sorry we have breaking news from carrie lam, chief executive and hank on. Executive of hong kong. There will be further tightening of social distancing rules, saying there will be more and or Entertainment Venues closed. The chief executive going on to withouthis briefing giving details, details meant to be announced later today, the move is to focus on closing certain premises where most of the people would take masks off. That is the direction in which the tightening is going here in hong kong. Next, astrazeneca defending results of its covid19 vaccine trial after accusations it embellished the findings. We hear from the companys executive Vice President , next. This is bloomberg. To safeguard the health of the hong kong people is on a new track. We have joined the international arrangement. The other is we have been discussing, negotiating and signing a Purchase Agreement with some Research Companies and production companies, but i am not supposed to give you the details. That is to be reserved, kept on a confidential basis. As you know, some of the vaccines are being developed on the mainland and i have also asked the central peoples government that if needed, we will be on her own to procure behaad hong kong will further tightening social distancing rules, the chief executive mentioned at that briefing, not giving many details, saying they will come later today. It will focus on closing certain premises were people would take masks off. She might give more clues as to what is in store. There is a major challenge for humanity all over the world. In our own country, we have managed to control the pandemic, and the economy has rebounded and other things have been happening. As far as hong kong is concerned, we continue in a vigilant manner to fight the epidemic and also to introduce various measures that are necessary. This morning, i have described to you how we will step up testing on a mandatory basis and on a target group races. Basis. Ive also given you a preview that later today we will announce measures to tighten the social distancing measures in order to control the spread of the disease, especially in light fromis big posture arising dancing halls. ,f our experts and evidence whether local or international, have clearly shown a more effective means to do it, we need to adjust our measures and of course we will do it. The hongt want to give rep people in general sit of where we stand. We have to look at it globally, because this is a global pandemic. Hong kong is not doing bad at all. Ofre are several indicators how a territory or country is handling the covid19 pandemic. One is the confirmed cases per one million population, the other is deaths per one million population, and the third is tests per one million population. Looked at those International Statistical compilations, you will realize hong kong is not doing bad at all. So lets have confidence in ourselves that by putting in our best efforts and the government taking a lead and by individual citizens playing their part, this is still the time for avoiding close contact, it is still the time for not going into high risk places. But if people are not complying, then i will find it very difficult to manage the situation. But we will try, we will never give up, because this is concerning the health and safety and wellbeing of people of hong kong. The third question, if i may correct you, i am not consulting beijing on the policy of risk. I am policy address. I am compiling my own policy address. But it is clear to everyone that if we want our economy to bounceback, there is no better place than the mainland of china for us to tap into, because other parts of the world are still struggling with the pandemic and high unemployment, economic slowdowns and so on. A couple of months ago, i have put to the Central Government a list of issues i feel are important to help hong kongs economy to revive. They may not be immediate measures but they are the measures that will help hong kongs economy to grow. Rishaad lets have a look at markets as we head to the commercial break. Topixfor the nikkei and , sing a peaceful transition of power in the u. S. Seeing a peaceful transition of power in the u. S. , responsible for some of the optimism, lifting equities are generally speaking. More on the way. This is bloomberg. It is 10 20 9 a. M. In hong kong and shanghai. I am Karina Mitchell with the first word headlines. President trump tweeted he supports starting the transition to a new administration. After the ultimate Election Authority agrees joe biden won. Continueshe president in that he expects to win. Biden wasascertained the apparent winner of the election. Sources in washington say joe biden will nominate former fed chair janet yellen as his secretary. The first woman and veteran central banker to hold a top economic post as the u. S. Tries to emerge from the coronavirus downturn. Observers say yellen would bring be a provocative pick. A brexit deal could be struck as early as the end of the week, though more remains to be done. Negotiations have been continuing remotely since a member of their team tested covid positive. Both sides are optimistic over agreement. Michel barnier says differences remain, but talks continue, and they are preparing members for every outcome. A United Nations panel says the detention of former nissan boss carlos ghosn was neither necessary nor reasonable, calling his 130 days in jail extradition over abuse extraditional abuse. Case to referring the the u. N. On inhuman and degrading treatment. Former Goldman Sachs banker seeking the dismissal of the 1mdb linked bribery case against him. He said the u. S. Should not be prosecuting fraud based in malaysia. He is facing a trial for bribery and moneylaundering, the embezzlement of 2. 7 million from the 1mdb investment fund. He is currently free on a 23 million bond. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Karina Mitchell. This is bloomberg. Juliet the aussie dollar bank up . 73. We are hearing from the reserve policies the about central bank has put in place since the start of the pandemic, sang expectations of further monetary easing have held itped their currency, but could be a while before a vaccine is available. Overnightrom qantas saying they would require a vaccine for overseas travel. At . 73. E dollar high he said it would be higher if not for the policy package the rba delivered. Stocks, we are still seeing asian Stocks Holding at records. We have the start of the formal transition for joe biden helping lift markets and equity futures in the u. S. Msci 300 under pressure. The Trump Administration could be making things harder for the Biden Administration. Korean Stocks Holding at records and korean stocks at the highest level since february. We mentioned qantas. A vaccine will be a necessity for overseas travel. Sydney holding at a high. Boc in hong kong coming under pressure despite Morgan Stanley lifting its aviation target. We are looking at jd. Com. Hong kong to expand the scope of towelg, according to sing tsing tao. Rishaad the u. K. Proposed a fine of as much as 100,000 pounds a day for companies that reach security rules. They are supposed to oversee 5g and fiber networks, but ultimately, they oversaw huawei equipment. What is behind britain considering this ban on installing huawei 5g equipment and why is this coming now . Jodi lawmakers from Boris Johnsons conservative party are demanding stricter rules on Companies Using huaweis 5g gear. This is part of their price for saying they will back this telecom legislation, which is due in parliament next week. Lawmakers had left it to the telecommute and firms themselves to replace huawei equipment before the blanket ban in 2027, but now this is moving up. There would be a ban enforced as soon as next september, said somebody who talked to bloomberg, asking for anonymity as these talks are confidential. The u. K. Set limits on buying huawei equipment and of those are set to kick in early next month. Are just talking about the fact the Trump Administration could be making things harder for the incoming Biden Administration and stepping up further rhetoric against china. Tell us what they are expecting here. There are reports senior Trump Officials are pushing for new hardline measures against beijing. Would createtious an Informal Alliance of western nations that could jointly retaliate when china would use its trading power to try to coerce countries. This at the end of the Trump Administration. Bind theow this would incoming Biden Administration. This plan was sparked by chinese economic pressure on australia, after that country called for an investigation into the origins of the covid19 pandemic. The retaliation plan, when china boycotts imports, these nations could agree to purchase goods or provide compensation, or the group could agree to assess tariffs on china for lost trade. Tariffs have been a large way the Trump Administration thought to retaliate against china over the past few years. How can this work in reality . How serious of a proposal does it appear to be, given their is expected to be a transition of power . Jodi the Senior Administration officials behind this acknowledge the new measures face a steep hurdle. They would have to get this in, then see if the Biden Administration would stick by it. It would need that new administration to carry it forward. President elect biden said they will be tough on china. Ways to going to find make china play by international rules. It is unlikely they would carry out something President Trump started in the last month. Jodi schneider with us in hong kong. Chinas tech giants enjoying a Consumer Market shifting to ecommerce. They also face increasing scrutiny from regulators. We get jp morgan to weigh in. This is bloomberg. Is bloomberg. Chinas new regulations against internet monopolies are aimed at reining in the great influence of alibaba, tencent and others. The moves parking a selloff in mainland. Our next guest says the new rules signal of further tightening of the online economy. Lets bring in alex yao from jp morgan. Good of you to join us. It does bring about tightening in those rules, but it is also a needs nationala champions. It is a fine line that regulators have to tread upon. I think the internet space has been loosely regulated the past decade or so. Theregulators have leveled Playing Field between online and offline. Believe [inaudible] keep on innovating themselves or growing their economies. Rather, it is to create an even Playing Field between online and offline. Regulations we will probably target, a specific universe of antitrust is the larger guys. Likeof the others, advertising law and ecommerce general and regular frameworks that apply to everyone in the space. I think it is less about the regulatory environment, which is designed to create a Regulatory Framework for everyone, including online and offline. It is more about the innovation of the online guys to keep pushing the penetration from online to offline. The latest one of developments in the space driven largely by online, targeted to the offline fresh consumptions by consumer. Quickly, as you say, it creates a more level Playing Field, perhaps designed to allow larger players to become bigger without being taken out by a big company. Is that correct . In the case of antitrust rules, yes. Time. S not the first take ecommerce as an example. These issues are also identified and specifically regulated by ecommerce laws. This is nothing new. I think by leveling the Playing Field between online and offline, also within the online space, larger guys versus smaller guys, the secondtier players are positioned to benefit from a number of areas such as merchant supply, product supply, etc. Rishaad alex . That brings me to asking you, what are the companies you are looking at the benefit from this . In the long term you have overweight ratings in the likes of alibaba, tencent, jd. Com. Specifically in terms of antitrust law, intuitively, the secondtier. The leaders in the secondtier stand to benefit. D, they will see improvement in terms of their merchant relationship and supply capability. Alex, i wanted to, for our viewers show a chart we have seen, outperformance from tech players. Some names you have mentioned versus what we see in the nasdaq. Will that continue based on what you are saying and demand for a lot of these key internet players in 2020 . I think the fundamental driver for the share Price Performance is continued innovation in their business and extending into a market, online fresh, etc. From another perspective, on the Capital Market perspective, the outperformance is largely due to what i would call liquidity driven growth in the rally. Arecally, the liquidities chasing longterm growth stories in the global market. In china, the best performance jd, ourrmers, pdd, longterm growth stories. Off from low base, with potential, much larger upside compared to incumbent platform leaders. This is the same case. A lot of the longterm growth story performed well, including tesla. Juliette how much further upside you see from what we are calling this new retail and the way we are shopping online, as we head into the next couple of years . At the moment, chinas ecommerce penetration stands at 25 . Represent ae sizable market, easily 3. 2 5 trillion renminbi. Trillion renminbi. The penetration could easily reach 30 to 40 in the next three years, with continued room for these ecommerce operators to grow. Juliette is it based across every sector, or are you seeing specific areas where people are choosing to shop online versus the traditional bricks and mortar . Not really depends on the penetration. Really depends on the penetration. It is different from one sector to another. Take advertising. Online advertising represents 70 of the total. As an industry, Online Advertising is not promising, because room for further penetration is limited. It is more about revenue share reshuffled based on traffic trends. Which stands at 25 market share. Potentially there could be a lot transactionbased platforms to grow in the next few years. To that point, alex, when you talk about these secondtier companies, as you group, in this industry which one do you see most promise for, and why . I think among this group, are very interesting and could continue to drive upside to financials and share price. A common characteristic of the operate inone, they a very sizable market. They continue to expand , more andness scope more consumer based transaction cases. Whichis the core continues to perform well. Progress ofbout the the cooperation versus the Financial Impact on new industries. Alex yao from jp morgan, we thank you. Speed. D for as china andace, japan via for supremacy. This is bloomberg. S is bloomberg. Juliette japan and china are raising to build a superfast levitating train with big export potential. The technology is already in use for short distance and experimental trains, but they are developing the worlds first longdistance intercity line. We have the story in tokyo. What makes these trains different from other types of highspeed trains . It is their speed, at the end of the day. They routinely clock speeds of over 500 kilometers per hour. To put that into context, trains from d. C. To new york in the u. S. These days would be about three hours. With this technology it would be cut down to about an hour. If you calculate it, it is faster than flying. This is a technology that has been studied for a long time in japan, since the 1970s. Basically, the trains use a magnetic levitation force to not make contact with the actual rail line. They are floating above the tracks, which takes out the friction and allows them to hit immense speeds. Juliette faster than flying. Why are japan and china racing to build these lines between major cities . Goal is to connect the major cities in both countries, cut down commuting times. Also, what both japan and china exporting this technology. It is the market for real export products is to trillion dollars. The idea is, if they can build service, they can have the upper hand. These types of trains are hugely expensive. That has always been the problem and quite unreliable. It is a huge project in tokyo. That means a lot for japan in particular, doesnt it . Massivelyis expensive. The government has contributed loans. Criticism ofn some the cost of the train, especially given the current covid situation, which may see travel cut significantly in the lines and current maglev have been operating on losses. For japan in general, highspeed rail has always been a major plank of japans economy. The former Prime Minister targeted Infrastructure Projects like highspeed rail as well as japanese Economic Growth. If the country can get ahead with new technology, the view is that there will be a huge future market for it. It was the first country to pioneer the bullet train. As i said, they have been studying the Technology Since the 1970s. There is pressure to get this domestic project up and running. River davis, our transport reporter in tokyo. Check on the latest business flash headlines. Atop Trump Administration aide expecting trumps ban on tiktok and wechat were stalled in the courts. That theents were moves were electionyear politics. They think the president s authority will succeed even with a possible change of an ministrations. In wisconsin,logy hailed by President Trump as crucial to bringing jobs back in the u. S. Foxconn will fill a contract in the state, rather than taiwan or china. Mass production could begin early next year. A chinese developer ever grand can celebrate rare good news. Their ipo was covered on the first day. More than 2 billion. Evergrande under pressure to reduce its debt and has been seeking new funds for months. Asian stocks Still Holding at records. We are starting to get clarity on the biden transition of power which is lifting futures and markets. We have heard about this increase in restrictions in hong kong. The hang seng index up 0. 1 . Weakness in the mainland Chinese Market as we hear that the Trump Administration is weighing new actions against china. Alibaba and jd. Com getting a left on the report hong kong could expand scope of trading links with mainland. Qantas at former highs. Any International Travel on travelers on qantas have to prove they have been vaccinated against the coronavirus. Pressure despite Morgan Stanley lifting its target price. Markets,ad, currency indias agriculture in focus, and an informer joins us. This is bloomberg. 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. Juliette it is almost 11 00 a. M. Here in singapore and hong kong. Welcome to Bloomberg Markets asia. I am juliette saly. Rishaad i am rishaad salamat. Isey agency says joe biden the apparent winner of the election. And they triggered off the transition problem process. He is likely to nominate janet yellen to the treasury. Juliette the Trump Administration raising the saying 89anding Chinese Companies it will bar, due to links with the military. May either first Global Airline to demand proof of vaccinations before one fly. We will get the latest from sydney. Juliette a quick check on the markets. Most markets are tracking higher on optimism the Biden Administration will start. We are extending records with a number of markets holding at multiple highs, including the kospi. Crude is holding at its highest level since august on vaccine progress we had from astrazeneca, the latest company to hold a successful trial. This optimism meaning safe havens are getting dumped. We have gold down 0. 9 . The banks,ts get to 0. 75 higher. G a mixed bag for the nifty in india. 45 minutes from the start of the session. Very much in focus. We see this recent strength, a 10 month high, worrying the government. Ministerrys finance said to do more shortterm action to dampen the strength of the currency. They have already acted on capital outflows to make that easier. 5. 9 . S 10 year yield is we see a move to the downside. Switchingting for the of shortterm bonds to longterm debt. This is a look at first word news. Global coronavirus cases approaching 60 million. May killat covid19 another 30,000 americans by christmas. The cdc model showing weekly u. S. Cases and deaths arising every week for at least the next month. Italy the Second European nation to report 50,000 covid a talent fatalities. England with even tougher regional curbs. A new surge in infections prompting hong kong to close more indoor Entertainment Venues. Details have yet to be released. They reported 63 local cases monday, the most since august. The initial success has turned into a new wave. Carrie lam says the measures are vital, despite hong kongs good covid record. We have decided to further tighten these measures. We will focus on closing certain premises. These premises are in general indoors. Activitiesm involve where you would take your mask off. There is also crowd gathering. Reports from washington say that Trump Administration is raising the stakes with beijing, naming 89 Chinese Companies it aims to bar from u. S. Technology due to links with the military. They point to our draft from the commerce department. Beijing says it opposes what they call u. S. Oppression of Chinese Companies without cause. The British Government considering a ban on 5g equipment from huawei as soon as next year, to appease mps calling for restrictions on the chinese telco. The conservative party wants stricter rules on those using huawei equipment as part of the price for backing that telecoms security legislation. A blanket ban on huaweis equipment said to be enforced in 2027. Qantas the First Airline to demand vaccination before passengers can fly. The jab would become a necessity for International Travel, when one becomes available. Another is working on a mobile status andnstrate introduce socalled covid passports before flight. That is a look at our first word news. You can find us on the web on bloomberg quick take as well. Juliette . Juliette the head of the u. S. General Services Administration acknowledged joe biden as the winner of the election. President trump to cooperate. Lets get to Kathleen Hays who joins us from new york. She is here with what happens next as the transition of power is free to begin. I guess this is the first step in the official transition of power. Kathleen it certainly is. It is no big surprise, the potentially a big relief for many, particularly for the biden campaign. This transition of power we have delayed,since this is a historic event in many ways, that it is not just, ok we can transfer power. It is a democracy, you won, i lost. We all move on. It is also the steps the new team has to take. This,he gsa decided triggering the formal transition allowed joe biden to get resources, access to current officials, access to briefing books, about 6 million in funds to cover the cost of this and more. There is a practical aspect as well. Sa chief emily murphy has been criticized for doing what trump wanted her to do, for Holding Things back. What she said today, it was progress on legal questions, legal developments, allowing this decision to be made, allowing joe biden to get the resources he needs and deserves. Trump said he told ms. Murphy to do what needs to be done. Now he is telling his team to do the same. He is saying our case strongly continues. We will keep up the good fight and we will prevail. Meanwhile, emily murphy said again, stressing she made her decision independent of President Trump. She made it based on law, the available facts. Some of the available are facts facts are that in pennsylvania and michigan, major decisions were made not to overturn the electoral vote, to let the disputed ballots be counted, etc. Furthermore, prominent republicans have been urging the president to move on, saying to joe biden publicly, it looks like you will be the president , we have to work together, etc. All things seem to appointed in this direction. Seen what it be means. For the country, i think a lot of people will say, this is a big step for joe biden and he can make it, though a group of Democratic Congress people are insisting ms. Murphy have a meeting with them to explain what she did and why. I suspect joe bidens eye is on the bigger picture. Beingd janet yellen plucked out of semiretirement to pick to be a treasury secretary. Kathleen i guess you cant keep a good former fed chair down. Isnt it enough she was the first female chair of the Federal Reserve . Potentially as joe biden gets ready to nominate her, and the senate will have to vote, she will be the first u. S. Female treasury secretary as well. Advisors looking at the fact she was there in washington with the other fed people during the financial crisis, the great recession. She knows what it is like to lead a recovery, to get banks and the economy through a crisis. This is potentially important for her, to get the u. S. Through this pandemic recovery. Look at her resume, fed governor, which turned into fed vice chairman, which turned into fed chair, president of the San Francisco chair, past two bipartisan votes to get there. She already has the relationships. Investors, Financial Markets, they know her well. Whether they are a fan of her policies, at least they know she has worked hard, competently, and a nonpartisan way. To do her job as fed chair. Forl be a different role janet yellen. We talk about the need for the fed chair to be independent of the white house. Now she is part of the white house team. Whatever she brings to the table in terms of helping the economy recover, she will be working for and with joe biden to advance policies he would like to see. It will be interesting to see what she does in this new role with this new hat. Rishaad kathleen, thank you. Kathleen hays in new york. Still to calm, the one bright spot for Indias Battered economy has been agriculture. E discussed that juliette how will the dollar respond now that bidens path to the white house is clear . We talk currencies with christie town. This is bloomberg. The dollar is edging lower after the triggering of a formal transition process for president elect joe biden. Says guest relieved that easing is allowing a negative dollar dynamic to return to the fall. Lets bring in christy tan at National Australia bank. We dont want to get your political views, but we do want your market reaction. What we are seeing from this transition, how do markets price this yellen move . Christy thanks for having me. As long as there is an additional level of uncertainty being removed, layer by layer, markets are taking that in a more positive manner. We are seeing that translated marketsonger equities performance. I think Risk Appetite and the vix level is likely to see wherebyn the upside, heading into the thanksgiving holiday potentially markets could still be hit constructively. Also seeing ite in the dollar. We have a chart for our bloomberg viewers showing this weakening trend for the dollar remains intact. How much further do you see that and what level should we be watching . A review has been that the dollar is on a weakening trend. This is just the beginning of something not just cyclical, but structural as well, hitting into 2021. The dollar is losing its support and coming from an over valuation perspective. Heading into the rest of the in thee might see swings u. S. Dollar in terms of some strength not being sustainable. Recentlyre seeing is the data point does point to some improvement. Broadstill amidst a dollar decline environment we are looking at. Does that make you revise some of your forecasts, particularly in asia . Christy we have done that in the past few weeks, looking at stronger appreciation, especially the chinese yuan. Along with that, providing the anchor for the other asian currencies to appreciate. A large part of this has to do with the biden presidency reducing Political Tension between u. S. And china going ahead or at the very least, the optimism and hope that biden will be less harsh on china in terms of trade and the political situation. Tell us something. There are so many people, institutions, in the camp of looking at a dollar weakness story that it seems rather crowded. Would you be surprised if it went the other way . Christy that is a great question yes, it is increasingly looking like consensus. It is increasingly at a point where everyone is in agreement that the dollar will continue to weaken in 2021. However, i think we need to look at, there are still a lot of swings. Is the u. S. Economy going to recover . Vaccine optimism of a sooner rather than later. Support whereby if the u. S. And covid situation and show signsformance yields showming and signs it is bottoming out, especially the dollar. Of limiting the consensus view of the u. S. Dollar weakness. Is there a scope for the dollar to rebound . Tohink markets are sensitive the development of the covid situation as well as vaccine hopes. I think we are looking at a lot donegative views, if cases rise and spike because of holiday gatherings. Factor on also be a the u. S. Dollar. Take a look at the aussie dollar being todayted by comments made by the governor. What is your target on that one . Does it look at the top ptu . Many on this program have said it is overvalued at the moment, given the state of the australian economy. Christy we look at the aussie dollar, our year end target of 74 cents. It is quite reasonable. Given the outperformance of the aussie dollar, some other currencies stem from the fact the biden presidency could lead to easing of tension between australia and china. The tension is probably reduced Going Forward. Istop of that, the recovery pushing for demand from the aussie dollar. That will provide supports for the Australian Dollar to continue to perform, going into 2021. Beyond 74cents cents, we are looking at the other sectors. Australian rates coming off, negative factors for the Australian Dollar. On the contrary, i think it is priced in by the market. Markets are probably focusing on the recovery of the australian economy, post pandemic. The e. U. Very quickly, signaling programs, traction on a deal. Reflected in sterling . Sterling has been appreciating of late. Surely we cannot be certain a deal will be struck at all. Reflectedhat is being on and off in the sterling and the euro. I am not sure deal could happen in the next week or so. There is a sense of uncertainty it is providing volatility and swings in sterling. Confident a deal could be struck in the next week or so. Provide a negative prospect for sterling in the coming trading sessions. Since sterling appreciated. From thate entering position. We are looking at the dollar weakness in the coming weeks, premised on recovery in the euro and sterling. Of weakness that comes out from a nondeal or lack of certainty over the deal would support the dollar. 2018tte the kiwi at these highs. The government trying to get home prices through the rbnz. What are your thoughts . Christy we are kind of looking we have beenst projecting higher aussie versus the kiwi dollar. Recent developments in the kiwi could lead us to rethink and reassess whether or not a higher aussie kiwi could be in the offing. The kiwi could get a meaningful boost from all these latest elements. Developments. You, christy tan from the National Australia bank. Look at these top Analysts Recommendations across markets. This is bloomberg. Juliette time for our morning calls. Lets get to Sophie Kamaruddin in hong kong, who has been tracking insights with janet yellen from the treasury. What are the expectations here . Sophie i want to highlight a note, sang janet yellen will easily win confirmation and bipartisan support, regardless of the Georgia Senate runoff. He predicts more than 80 votes in the full senate, which will give her strong standing when it comes to pushing for a stimulus package in the First Quarter of next year. He also predicts a yell and pick means there will be a higher chance the fed will restart emergency load facilities in late january to get low cost credit into the economy, and thinks there will be more support for the housing sector. Rishaad also, we had a Public Holiday yesterday, so there is a bit of catchup, 2. 5 i believe after the lumpy after the lunch break. Is that more room to run in 2021 for the nikkei and topics . Sophie a back to the future scenario for japanese stocks, given they see the market has ingredients to perform well, including a booming domestic money supply and an abundance of cheap typicals, reminiscent of the late 1980s. The uptickiting from when it comes to global capex spending. Jeffreys expecting a wave of earnings upgrades with profit north of 35 in 2021. The team at jefferies penciling in the topics at 2400 topix at 2400 next year. Rishaad thank you, Sophie Kamaruddin. Lets have a look at how markets are behaving themselves. That china lunch break nearly upon us. Hang seng just about positive, hanging onto positivity by the skin of its teeth. Carrie saying there will be social distancing rules. Those details coming up as we see coronavirus cases spike up in the territory. Asiapacific index up 0. 9 . Kospi at a fresh record high. As long as it is positive, it has a record close today. We had to the lunch break. On the way down currently, shanghai composite, down 0. 1 lower. 6. 58 against the dollar. 3. 29 . Marketsa look at those as shanghai and shenzhen go to their lunch break. That is a look at shanghai right now. This is bloomberg. 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. Any idea how much it will cost . You have a choice. Insurance or goodrx. I have insurance. Insurance is not what it used to be. People struggle to get their prescription covered and prices keep rising. I recommend goodrx. You get free coupons to save on your prescriptions. [narrator] compare prices to get the best discounts. Goodrx, smart. [narrator] stop paying too much for your prescriptions. Download the free app today. Rishaad the time in mumbai coming up to 9 00 in the morning. The start of the trading day. Singapore indicating a flat picture. Could be adding to the gains we did see in the session. We are looking at bonds in particular. Sophie will have a look at new reaction. Yields are moving slightly to the up. York, getting new the first word headlines with Karina Mitchell. President trump issued a tweet saying he supports the transition to a new administration after the Election Authority agreed that joe biden won. However, the president says he still expects to win. The general Services Administration ascertained biden was the apparent winner of the election. In washington they say joe biden is set to nominate former fed chair janet yellen as his treasury secretary. If confirmed, the first woman and veteran federal chairman to hold the job. Observers say yellen would get support from wall street and be a less provocative pick than the sometimes touted elizabeth warren. A brexit deal could be struck later this week, though more remains to be done and political will must be found. Negotiations have been continuing remotely since a member of the e. U. Team posted covid positive. They are optimistic about an agreement. Michel barnier says differences remain, but talks continue, and they are preparing members for every outcome. A former Goldman Sachs bankers seeking the dismissal of a 1mdb linked bribery case, saying the u. S. Should not be executing a fraud raised in malaysia. He is facing charges of bribery and money laundering, accused of the embezzlement of 2. 7 million from the 1mdb investment fund. He is currently free on a 23 million bond. Unmemorable milestone, the First Central Bank to gain one million followers on twitter. Traditionally under banked and susceptible to fraud. The bank of england has just over 300,000. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Karina Mitchell. This is bloomberg. Juliette we are looking at asian Stocks Holding onto these records. Vaccine optimism, astrazeneca the latest. And the likelihood we are going to see the transition for the Biden Administration helping things along. Look at the nikkei 225 with a gain of 2. 7 , back at those early 1991 highs. Hong kong markets flat. We are hearing from carrie lam about flattening after a spike in infections. Australias Market Holding at february highs. Currency markets, the japanese yen has been weaker. That big momentum coming through in japanese stocks. The kiwi leading gains. We spoke to christy tan about the kiwi. This in the back of Grant Robertson asking the government to put home prices in new zealand into their remit. Strength,uan gaining but holding against the dollar. From thoseting tenmonth highs. Rishaad lets have a look at britain, a proposed fine of 10 of sales or 100 pounds a day for companies that break new Telecom Security rules. The Telecommunications Agency oversees 5g, mobile and fiber networks, but will enforce the ban on huaweis 5g equipment lets get more from jodi schneider. Why now . , thehe proposal on huawei timing in particular . Jodi this is driven by lawmakers from Boris Johnsons conservative party demanding stricter rules on those using huawei 5g gear. For is part of their price backing that Telecommunications Security legislation due in parliament next week. Before now lawmakers left it to the Telecom Firms to replace that 5g equipment from huawei before the ban was set to be enforced in 2027. This new proposal would see a ban enforced next september. Those familiar who talked to bloomberg said, the u. K. Has already set on set limits on Telco Companies buying huawei equipment, set to take place as soon as next month. Areette what actions senior Trump Administration officials considering against beijing . Jodi some senior Trump Administration officials are pushing for new hardline measures against aging. Create anicious would Informal Alliance of western nations that could perhaps jointly retaliate when china would use its trading power to coerce countries. They say the plan was sparked by chinese economic pressure on australia after australia called for an investigation into the origins of the covid19 pandemic. What we are hearing after this agree tontries would purchase goods or provide compensation. Is looking totion broaden its ban on imports from chinas region that are made with forced labor. Schneider. Di breaking news from an advisor to the japanese Prime Minister, mr. Suga, his advisor. The advisor to the Prime Minister, saying their airline should be bailed out, revamped jal tolling for ana and become one. Ana holdings this news is just breaking. On sugasst serving growth counsel saying these Airlines Need more support and they should become one, seeking out loans or reducing costs, Japan Airlines raising 1. 75 billion. Looking over the sea to south korea, two airlines planning to merge. Who would be the senior party . We have a capitalization for ana 86 billion yen. You flip it around, 35,000 employees for jal. 33,004 ana. Differentse two, airline alliances, which one with a join . As these headlines across the bloomberg terminal. New industrial revitalization operation. Corporation. Juliette these boosts on the nikkei 225, holding it may 1991 highs. That was closed yesterday for the holiday. A huge move with Japan Airlines. We are counting down to the opening, less than 10 minutes away. Stay with us. This is bloomberg. Berg. Rishaad agriculture has been that has been hit by the coronavirus, the monsoon raising thoughts of a bumper harvest, but will growth be sustainable . Lets speak with the president , atul chaturvedi. A very warm welcome to the program. It is a very important part of the economy, one which is significant. Give us an idea of the reigns arriving at the right time to provide enough change to beat expectations. Atul i think india has been blessedd the rain has india this year. As you know, there is an old saying, rain makes rain. This is what happened. We had very good soil and good crops. In excess of 10. 5 million tons, higher than last year. We had a good walnut crop. Icing on the cape, sugar production is likely to rebound big time. 27 million tons. Surprised if it reaches many millions of tons. It is a blessing in disguise for the country. As the late reigns happened, that insured moisture in the ground is very good that is a good crop as well. Overall, i think it is a good timeframe. The only sector which seems to in the First Quarter of this year, agriculture was more than 3. 4 . I would not be surprised if by the end of the year agriculture crosses the magical figure of 4 . This is a good time for india, as far as agriculture is concerned. 55 percent or 60 of the indian population is dependent on agriculture and this is a rural area. We saw at the beginning of the pandemic and italy how people migrated back to their villages. Will that make the harvesting of these crops more efficient . Wilmore be able to get to the big cities . The big problem has been the amount of attrition in getting crops and vegetables into the metropolitan centers. Overall, the migration back to their home towns what has happened is, with good rains and good monsoons, harvesting has taken place brilliantly and consumption as far as the rural sector there is concerned has also increased. Covid has had a different scenario in india. We had good rains, good crops prices have gone through the roof. It has helped us big time. Juliette does that help to increase armor earnings in a year that has been incredibly rough in india . I did atul i did not hear the question. Can you repeat it . Juliette the bumper harvest, will that increase farmer wages . Atul certainly. This is probably one of the first times you had very good crops in the country and coupled with that, good commodity prices. Oil prices have gone up 35 . So as practically everything under the sun. Whole sector has gone up. Agricultureyou see in india at 4 when the economy is not doing that well. Agriculture is the only Silver Lining as far as the Indian Economy goes. Whattte 4 growth, projections do you have and how will that reduce the gdp of india . What we are seeing is the cultivation of these operations are at a very robust phase. , it is aboveil now almost 10 . Surprised ife too it is more than 15 to 20 . Ofy have placed a target 12. 5 Million Pounds of mustard this year compared to 9. 3, which is what it was last year. Figuresyou discount the , the fact that possibly we could have 20 higher mustard production next year cannot be highunted and must be a bearing seed, you could have one million more tons of mustard oil. Who knows, if prices remain where they are, the indian farmer might respond very positively. Possibly see growth of 1. 5 million tons next year. Atul, what about reform of the agricultural side of things, to attract both support and could a schism . What longterm implications of the measures, very quickly. And, will there be enough onions produced for local consumption this year . Atul always a political hot potato. Largely delayed on account of the late rains. I think agriculture was one [inaudible] for far too long. Our Prime Minister has been speaking about selfreliance. I am sure these are more or less same direction. I would like to talk about the onential commodities act, the indian supply chain in the past. This time they got rid of that. I think it is in the right direction and possibly might see investments come into the Agriculture Sector in india as well. Juliette thank you so much for your time, atul chaturvedi. Lets check in on indian equity markets. They are still trading at a record, seeing gains from the of these banks lifting on keys. The index up i over 1 . To restartorts International Travel. Helping travelers prove they are virus free. This is bloomberg. Rishaad you are back with Bloomberg Markets. Advisortalking about an to the Prime Minister in japan calling for the two big airlines jal, to becomend one. Saying they should be revamped, putting money into the struggling aviation sector. Also suggesting they should become one. Take a look at the share reaction. Ana was low. It has moved into positive terrain. Japan airlines at the highest of the day. On primeadvisor strategy,ugas growth making these remarks in an interview. The Global Airline lobby working on a mobile app to help travelers prove their coronavirus status. Lets get to angus, who joins us from sydney. Of this travells pass initiative. This is being developed by the International Transport association, essentially the world airlines, some 300 airlines. They are developing what you could call an electronic covid passport. Airlines, checkin officials, Border Patrol officers, if you have had a vaccination, your proof of onculation, so you can get that flight to whatever country you are heading toward. It also shows you the conditions of entry for your particular destination, as well as before you leave, the details of where to get your test. It is really an effort to smooth big range of controls and conditions around the world and make something consistent the Airline Industry can use to get people back in the air. Meanwhile, a glimpse into what International Travel will look like with qantas saying proof of a covid19 vaccine will be a necessity for international passengers. Do you have a shareholder reaction . Angus they have gone further. This is an option. They spoke to media and said, he considers the vaccination and thoseity for travelers, coming into australia and those leaving. He has spoken to other Airline Executives around the world. That gives me the impression it will be worldwide. That goes into imposing medical. Onditions it led to response on social media, people accusing qantas of medical tyranny. Juliette Asia Business reporter angus whitley. Shares rise qantas the most since february. Dont miss our discussion later today. Plus, more great gifts in the hours ahead, including an exclusive interview, klm ceo. And the w. H. O. Chief scientist as well. Later on, bloomberg is launching a global covid resilience rankings. This project measures how the biggest economies have handled the pandemic based on 10 key data indicators. Coverage across Bloomberg News and media from 10 00 sydney time. Rishaad lets have a look at a couple is no splash headlines. Hyundai teaming up with the richest man in britain to give Hydrogen Powered cars a boost. They will aim to provide hydrogen to hyundai, which has been making battery cell vehicles since 2013. They have their new grenadier offroader, which aims to come to market next year. They produce 300,000 tons of hydrogen each year. Say j. P. Rom new york morgan is helping with the evaluation of a possible sale of reebok. The New York Times said analysts say reebok could batch about 1 billion. The pandemic hit both companies. Sales have fallen 33 . Reebok revenue fell by more than 40 . Comment. S declined to google tobuy in india platform. Ony are doing Due Diligence the start up that could be worth around 1 million. A nonbinding proposal has been signed. They marked 10 billion for investment in india. About half of that on geo platforms. Assembling key components for a Google Service in wisconsin. Hailed by a plan President Trump as crucial to bringing jobs back to the united states. Foxconn will fulfill the contract in the state, rather than taiwan or china, and mass production could begin early next year. They wererson saying declining to identify any customer. Juliette a lot is happening in the airline space. Qantas shares on february highs. The ceo once everyone traveling internationally to have a vaccine. An economist who served as a minister and advisor on Prime Ministers Growth Council said ana and jal should become one. A strong jump, the biggest jump since noon. Holding at may 1991 highs. Asian stocks are at a record on the backs of this vaccine optimism and an easy biden transition. That is it for Bloomberg Markets asia. I am taylor riggs, in for emily chang. This is bloomberg technology. Covidiversity of oxfords vaccine is scrutinized after at least one analyst says the 90 effectiveness label was embellished and only part of a small sample. We have the latest in a race for a vaccine