Transcripts For BLOOMBERG Bloomberg Markets Asia 20240711

Rally has fed into crude. Propelled thates price. People look beyond the covid to a look beyond to a returned to normal. Gold pretty much stable appeared bitcoin at record highs. Up about two thirds of 1 . We have a u. S. Dollar index unchanged. Lets have a look at the copper price. Copper advancing. The highest price and a more than six years. It is under president elect joe bidens formal transition. The hope is there will be a move toward a Lower Carbon Energy future. That britain the outlook for its demand. As has what is going on in china up. Joining in all of that. Lets have a look at the transition in more detail as we get over to new york and join Karina Mitchell for the first word news. Introduced biden has his foreignpolicy and Security Experts as he seeks to calm relations with International Friends and foes. The president elect is promising a multilateral approach, reversing the America First tragedy of the Trump Administration. He will prioritize ending damaging executive orders and investigations into President Trump. Steven mnuchin is putting into an account. He is planning to put 455 billion into the general fund, which could make it hard for janet yellen to access on her own. The Joe Biden Transition Team called the demand for the return of the money deeply responsible. Japan and china have reached agreement to lift some virus travel restrictions, restarting flights for Business People by the end of the month. The Chinese Foreign minister will meet with the new japanese minister. That is ahead of jode bidens inauguration next year. The two sides remain far apart on disputed islands in the east china sea. The chinese premier says he expects the economy to see positive growth despite the sharp downturn in the first quarter. Speaking after talks with the world bank and the imf, he said china has been hit hard by the virus but is on the path to full recovery. He reiterated that further reopening and allowing consumptions to play a bigger role will not drive expansion. As the end of the year approaches, based on current data, we can say with certainty and confidence that chinas economy can achieve positive growth in 2020. We look forward to a reasonable operating range next year. Karina 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. Im Karina Mitchell. This is bloomberg. Extending stocks are wall street gains as news about joe bidens transition boosts sentiment. The msci all country index is on track for the best month since its inception 30 years ago. Its get more on this rally lets get more on this rally. Thank you for joining us. Our markets eating ahead of them are markets getting ahead of themselves . I think the market has good extend this risk rally because now we have clarity of the peaceful transitions of the new leadership in the u. S. We have positive vaccine development. Havelikely we would deployment of vaccines and a the first half of next year. Have key risk events of the u. S. Election totally behind us. Investors focused on the recovery outlook and we do have and we do expect economic recovery would sustain with accommodative Monetary Policy remaining an effective backstop for the financial market. We wouldhe risk rally prefer next to go. More importantly, earnings recovery in 2021 would be a key fundamental for the risk sentiment. So if you see that continued rally, how do you allocate to be best positioned for that . I know you are overweight in the u. S. Where in the u. S. Is looking attractive for you at the moment . A we have had a shift to cyclical sector. Positioning in the quality growth stock. Fromecent sharp rotation quality to value stocks have driven strong rally of the small and cyclical counters. We still stick with our portfolio strategy to focus on the structural growth winners. Sectork the technology would have further room to deliver outperformance because the structural trend [indiscernible] would likely stay after the crisis is over. We are currently overweight industrial, i. T. , materials, health care and Communication Services sector. Upgraded Consumer Discretionary in the u. S. Market to better position for the post Pandemic Recovery. Rishaad just to get your feel here, if we look at emerging markets, we cem asia outperforming the other gambit other e. M. Markets. How long can i go for . What are they looking for in particular . Where are they finding value . I think the asian equity sustain other parts of em mainly because of the leadership of asia in the current rung of Global Economic recovery and with the strong rebound in Economic Activities in china, this will further reinforce the recovery momentum across the region and we are expecting around 25 earnings marketsn asia equity for 2021. With the signing of the Regional Comprehensive Economic Partnership that is the Worlds Largest free trade bill, this is going to promote intraregional thee and also enhance revamping of supply chains within asia. This is going to reinforce the recovery outlook of the region. This will bode well for asian equities as well as asian credit market. Rishaad some would dispute that we would have that we have had at least one test on the program saying it is a lowquality trade deal and it does not move the dial because many of those socalled items which have become free of freefs were in fact also of tariffs in the past or subject to minor ones. The question is, are people looking at that bill with perhaps too much optimism . We just look at the absolute magnitude of the tariff quota,on or removal of it does not seem dramatic in terms of change. The freetrade deal would actually add momentum to the intraregional trade in tandem with the revamping of the asian supply chain. We do think that even after the u. S. Election, we do not expect a quick uturn in u. S. China relations. This means that the trade uncertainty between the u. S. And china would likely linger on. This would actually provide a seekyst for china to opportunities to reconfigure its own supply change supply chain as well. We would expect china to import more from the rest of asia. Strong believe that structural growth within the region the power by the strong fundamental in the region reopening andthe the rebound in Economic Activities going into 2021. This will actually provide a strong investment appeal for asian asset class, especially for those economies which are wellpositioned for the economic recovery. China is going to kick start with the fiveyear economic cycle. The plan will kickstart next year. This will add additional policy initiative to support the domestic consumption growth in technology upgrade. Growth and technology upgrade. This would be an additional driver going into the new year. Thank you so much for joining us. Much. You so we are a couple minutes away from left off from spacex. Nineve the falcon hunting at 16th starling commission. A little bit of wind at the launchpad. This could delay it slightly. At the moment, this is what we are watching out for. The falcon nine launching its 16th starling mission. We have these webcast images just before liftoff in Cape Canaveral in florida. That is what we are looking at at the moment. The spacex at the moment. The first altitude test as well. After success last week with the International Space station. We have another lunch. Another lunch. Tom we are being told the fuel is now loaded. This will be the seventh flight for the reusable falcon nine rocket. That is the key part of the spacex project is these reusable rockets. This is the seventh flight for this particular falcon nine as we count down to the liftoff at Cape Canaveral in florida. We know that the fuel has been loaded. H was talking about the weather conditions. We are a few seconds away from the launch in florida. You see some steam from the side of the falcon nine. Rishaad of course, against the background last time of elon musk actually witnessing the successful launch. He became the worlds second richest person as a result. I believe we have a countdown. We have about five seconds to go before liftoff. There we go. There we go. Falcon nine launching. Taking some 60 satellites into space. Literally up quite into the sky. We have blastoff. It is the 16th starling commission. The seventh flight of the falcon going into the clouds above as you can see in the lefthand as of, speed increasing course naturally and obviously altitude is as well. Successful launch thus far at least. Wishing them well. Turning to some other stories. President elect joe biden has introduced the team of foreign. Olicy experts he wants he is promising a multilateral approach to the pandemic and Climate Change to, relations after to calm relations after Donald Trumps presidency. It is a team that will keep our country and our people safe and secure. It is a team that reflects the fact that america is back, ready to lead the world, not retreat from it. Once again sit at the head of the table. Ready to confront our adversaries and not reject our allies. Ready to stand up for our values. Rishaad we are joined by jodi schneider. Bidens National Security team has been chosen, what does it look like in terms of what we can expect and especially how they will approach beijing . The america is back aligned seemed to be a direct the trumpe of administrations approach to Foreign Policy. When joe biden is seeking to do in the choices and the rhetoric is to say we are going to engage in a much more traditional kind of style of working with our allies, of basically trying to engage people on the International Stage in a diplomatic way rather than saying we are just not going to engage and we are going to basically send things like tariffs as Foreign Policy. The Biden Administration is expected to be tough on china. That is not expected to change the Trump Administrations china. Even in Biden Administration, though people like tony blinken who he has named as his secretary of state if confirmed are the kind of people who have a lot of Foreign Policy experience. Tony blinken was a deputy secretary in the Obama Administration for the state department. It is clear he is looking to experienced Foreign Policy hands and looking at a more traditional way of dealing with allies and adversaries on the world stage. I want to ask about the treasury putting aside the treasury just reporting we are expecting to see these boosters from the falcon nine rocket landing. Of course, it is as we know the seventh flight for the falcon nine. They have launched about 60 satellites, bringing the total in orbit to about 900. The booster is scheduled to land on the flooding platform in 44 seconds. Any now is what we are being told. Any time now is what we are being told. Just before the shutdown of the falcon nine upper stage engine. It will deploy the satellites and it will pass four minutes past take off. We are seeing those images of the boosters and we are waiting for them to land on this drone as spacex calls it. They expect the separation to take place any minute, any second now. They will be targeting a landing on spacexs drone ship, which is called of course i still love you. It is northeast of Cape Canaveral. The booster scheduled to land on that platform about eight minutes into the mission. 44ple as eight minutes and seconds. That is moments before the shutdown of the falcon nines upper stage engine. Link0 flap panel star satellite, that should take 14 minutes after liftoff. We are four minutes into the rocket landing. Three minutes to go before we see the boosters return to earth and land on the flooding platform, which is called of course i still love you, the drone ship. Tom. Yeah, we are still on these pictures of the rockets as part of the falcon nine, waiting for the boosters to part from the rocket and land on this drone ship. Some pretty impressive pictures and of course, at the moment they start to depart or detach and land on the drone ship, we are going to bring you those images. So far, it seems it is another successful launch for spacex, adding to the number of satellites in orbit. The total they brought up today was 60 satellites for this mission. We can listen in to some of the commentary from the spacex team. First stage is continuing to but nd it uses nothing for that steering and occasional nitrogen gas bursts for attitude control. Side of thehand screen, we will see the entry burn beginning. And entry burn has begun. This will last for another 20 seconds. Again, this is the first of two maneuvers that the first stage will perform tonight. Entry burn shutdown. Shutdown of first stage entry burn. Designed to slow the booster down significantly as it reenters the upper part of the earths atmosphere. The next maneuver will be the landing burn. It is the final one where we tognite one single engine make a soft landing on top of the drone ship. Earlier, this is the seventh we just hired the booster is no transonic as it is entering the earths atmosphere. This is the seventh successful launch for this booster and that will make this the seventh recovery attempt. Everything is continuing to look good on the second stage. Engine has begun to throttle down. Landing burn startup. We heard the call that landing burn has begun. We should see that coming to this green momentarily. Two the green momentarily. Landing legs have deployed. Landing legs have deployed. Here it comes. All right. , thise seventh time falcon has landed. 61st successful recovery of a falcon nine first stage. As the smoke clears, we can get a good view. We just heard the call out that we had second engine cut off one. At this point in time , thefor the seventh time falcon nine boosters landing on the drone ship after a successful launch of the falcon nine rocket, which was taking 60 satellites to the star link mission. Adding a total of 900 satellites. Another successful launch and another successful recovery for spacex. Lets switch back focus to the stimulus conversations in washington and what Steve Mnuchin is doing to make life potentially more difficult for janet yellen who is the nominee for treasury secretary under the Biden Administration. What is happening in terms of the stimulus . Why and what is mission doing what is Steve Mnuchin doing . It is about 465 billion worth of unspent money from the care act, which is the stimulus let earlierad been this year. He is putting it in fund that janet yellen if she becomes treasury secretary will now to help theto use economy. She would have to get congressional approval. Steve mnuchin claims he is not trying to make things more complicated for the incoming Biden Administration and get in the way of their economic revival attempts democrats say that is just what he is trying to do. The Biden Transition Team calls it deeply responsible to make that money unavailable to the next treasury secretary and that he is playing politics with the economic recovery of the u. S. Democrats are saying this is an illegal move. The white house and the treasury secretary is saying it is perfectly legal. He is trying to do this to make the money available in a general way to make the money available for the treasury. This is yet another of the skirmishes we are seeing between Congressional Democrats and the Current Trump administration in about six weeks into the Biden Administration will take over on january 20. President trump has refused to concede he will load he has lost the election. Clockore wrangling as the ticks down on the trumpet administration. Lets bring you the latest headlines. Smartphone maker shall me has followed us has posted its fastest growth of revenue rate. To 11 billion with more than half originating out of its home market for the first time. It has been a major beneficiary of the u. S. Drive against huawei. J. D. Health has released details of its Hong Kong Ipo to raise around 3. 5 billion u. S. Dollars. It is going to offer 382 million shares. Six cornerstone investors have agreed to subscribe to around 1. 4 billion of stock including Singapore Wealth Fund gic, hillhouse and blackrock. Pricing is expected december 1. Listing on december 8. Rishaad we are also talking about a santa claus rally. We may be getting it early. Global equities on course for their best month ever. The rally picking up steam wednesday. We have shares across the asiapacific on the way out. Equities leading those gains. , closes on sentiment wall street. The formal start to President Joe Biden president elect joe bidens transition. Pattern, we have bed news being shrugged off trade we have Services Producer price index falling below zero for the First Time Since 2013. The largest drop we have seen since 2012. That is a look at ppi. On top of that, the bond market in focus as we get 40 year bonds. P. M. Forts are 12 35 the auction. 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. Honga it is 10 29 a. M. In kong and shanghai. Rally, wallcord street is sounding the alarm on a new global downturn adding pressure on Central Banks and governments to do more to spur demand. Optimism about a virus vaccine is offset by fears that its delivery may take months while infection rates continue to soar. Economists say it will not take much bad news for the u. S. , japan and euro area to contract again. The u. S. Has confirmed its acision to designate cte as threat to National Security. The federal Communications Commission remains determined to drive Huawei Technologies out of the u. S. Market where small rural carriers rely they will consider prohibited components when it meets next month. Or than half a billion dollars of australian coal is stuck on ships anchored of chinese ports as a dip a medic spat between the two countries continues to hit craig to hit trade. More than 50 vessels have been waiting a month or longer to offload their cargo. Sea seafarers stuck at after china blacklisted australian commodities. Tokyo says it is certain a can host a safe olympics next year despite rising covid infections. The governor says she is determined to put on a show whatever it takes as authorities try to balance preventative measures against further damage to tourism and the wider economy. Thailand has welcomed the first foreign visitors in at least six months with the tourismdependent economy on its knees. October cell a thousand holidays october saw a thousand holidaymakers fly in. Mostand has relaxed measures to let businesses reopen but retains a National State of emergency to prevent a covid reemergence. 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. Im Karina Mitchell. This is bloomberg. Lets have a look at crunching the numbers to determine the best and worst places to be in this coronavirus air appeared we have been coronavirus era. Lets have a look at the results with richard chang. With rachel chang. What does the ranking try to capture ny . Capture and why . The starting point is the covid19 has been such a transformational event. Everything we know about the world. Which places would best handle a pandemic. That has proven to be wrong. What we wanted to achieve was to be able to capture indicators and put together a set of data that would give us a snapshot of how the world actually looks in the coronavirus era. Tom went to the best performers have in common what did the best performers have in common . What has emerged is there was some discussion prior to the ranking coming out that it seemed as though authoritarian countries were doing well while we have many prominent democracies, the u. S. , the u. K. Not doing well. Wase was a question of, that something democratic societies are not cut out for . What the ranking shows is that is not true. Eight out of the 10 mocker sees. Like newuntries zealand, norway, denmark in the top 10 as well. It is not like being able to order people into following rules. It is about, is there social trust . Is there public willingness to follow along with public guidance to sacrifice some of their conveniences for the greater good . That has emerged as much more of the game changer. Any big were there surprises when you crunched all these figures . I think one of the things that was surprising is what is going on in the u. S. Has been a big narrative. The u. S. Is not superhigh but it is not low either because it does have a strategy that focuses on vaccines. They have ordered 2. 6 billion doses already. That could quickly payoff looking at how we are going into a situation where we see the first vaccines being approved in weeks. We have the western european countries, france, italy thought of as advanced countries. They are right behind places like pakistan and bangladesh. Some of this has to do with being connected, being a travel node with open borders as western europe is has emerged as a disadvantage as people travel over the continent for summer vacation. That ignited the summer wave we are seeing now. Tom i notice you do have that metric when it comes to access the vaccines from zero to five. Places like taiwan, zero despite their strategy to containing the virus. How does access to the vaccine potentially change things . That zero to five is the number of agreements with phase 3 candidates that everyplace has appeared a place like taiwan, they have not inked any deals with the front runners yet. Then we looked at the u. S. And canada. They have deals in place with all five of the front runner vaccines. As we go forward into that vaccine season, we are going to start to see that indicator placeng important in a like the u. S. Cases and deaths could come down quickly once the vaccine starts flowing into the population. This is something we are keeping an eye on. Asia consumer and Health Care Leader rachel chang. That piece of analysis is worth checking out. Global recovery from the pandemic is heading into a critical period. Central bank chief cautioned the extraordinary measures could not continue indefinitely during an exclusive interview with haslinda on the two haslinda ahmed. Concerns about what is being done. If i have, it is about how we are going to get out of this . Getting into it is easy. Getting out is not. How do you do it because even in our conversation months before you said that, it is not the right time to ease but you have to stop being about easing. What needs to be in place before that happens . You have to recognize that the worst of the crisis is probably behind us. We have to proceed on that basis that this is a time to start gently tapering the level of support. You also recognize it is a recovering process and you have got to stop unwinding so you avoid a cliff later on. You have got to start doing this gradually as the recovery progresses. There are no hard and fast rules and that is why we may get it wrong if you pull back too quickly. That might undermine the recovery. If you do not pull back enough, you might be storing up problems for the future. When debt levels are high and you are forced to pull back to suddenly and that might be too sharp a fall for the economy to take. There is so much optimism we will have enough vaccine by summer for everybody here. Will that change expectations of a recovery for the Global Economy . Are you looking at a vshaped recovery once we have a vaccine . It is the level that matters. That will take a long time. I think it will be and of 2021 or 2022 when most countries go back to precovid levels. That assumes the pandemic being contained and i think a vaccine is a major part of that. That expectations we are going to see largescale vaccinations by the middle of exterior. Rather optimistic. Not wanting to sound pessimistic. The Global Economy will continue to recover. It is just it is going to take quite longer than what the markets seem to be thinking about when they look at the vaccine. What risks remain for the Global Economy . Ifrenewed outbreaks and there are renewed lockdowns of the same scale and severity we saw earlier this year, that would paralyze Economic Activity again. That is a major risk. Some of the deep scarring would have effects that are longlasting. Then there is the issue of policy support. If you get the balance wrong, if you drop too quickly, we might generate doubledip recession next year. If we go on at the current pace, there will be accumulation of so much debt. Unwinding from the debt accumulation is going to be a major challenge. The central bank cannot keep buying all of this government debt. The private sector needs to come in. That is going to put pressure on Interest Rates. Debt sustainability is going to be a challenge for many countries. Emerging market economies have to be careful about this. Given the unprecedented support from Central Banks, do you see their ability to respond to the next crisis being limited . Quite. In terms of Interest Rates probably. In fact, that was already pretty much exhausted the last crisis when Interest Rates came close thereo bound and remained. The name of the game has shifted to quantitative easing and asset purchases, which actually then flattens the yield curve and keeps the longterm yields low, thereby hopefully stimulating consumption and investment. I think from that perspective, there is still room for Central Banks to do more of this. Managing director of the Monetary Authority of singapore speaking with our coanchor. As hong kongs chief executive readies to deliver the key address, we discussed issues of disparity in the city. This is bloomberg. Rishaad you are back with Bloomberg Markets. Time for our weekly equality segment. We are focusing on hong kong. Arguably a stellar example when it comes to women in politics. Carrie lam will be delivering her policy speech in 18 minutes. Social prejudice and expectation means gender equality remains largely a work in progress. Lets discuss this with the Senior Advisor of the hong kong institute. Thank you for joining us. How bad or how good are things in hong kong with regards to equality of the sexes and are the right policies being employed . Equal Opportunities Commission in hong kong has been established for almost 25 years. We also have a Womens Commission in hong kong for 20 years. A number of policy addresses in the past, the government has introduced a number of followup care foro take care of children at home and also promoting familyfriendly policies and gender mainstreaming in the government. In the past few years, the government has raised to these as important equal opportunity measures. However, if we look at the achievement adequacys, we can see there is heightened awareness on what is equal opportunities and discrimination. There is also equal pay for equal work. If we look at gender mainstreaming, it seems like the endorsement has been more performer. When it goes down to the finetuning of implementation, we have not actually achieved the gender sensitive or refined finetuning of the policies so we can have substantive equity. Example yes . Carry on. Lease i was just going to ask you how things have evolved during covid with so many people unemployed that when things start to go back, do the youngest and poorest female parts of the population suffer the most in is that something people are worried about . That is what i mean by finetuning. Policies. Ve public for example, and the governments responses to covid19, we consider the need for target groups and the thefications of some of responses. For example, women who are homemakers and working from home suffer more family stress and Domestic Violence during covid19. There are more women workers who insecuritiesancial in joblesss. Rise inlso seeing a women and girls seeking legal abortion from the Family Planning association during the first eight months of this year. Yearsncrease over last numbers. You can see that women have special needs that need to be addressed when we look at restriction measures and we also need to think of social support that will be needed because when social services are also being shut down during the restrictions and social distancing, the support measures what affect women who are in need. For example, women with Domestic Violence. Ease access to women shelters because some have more social distancing measures. They cannot go out to bring the children in and some of these restrictions it has affected people with disabilities who are more vulnerable for infection. Martysas a section of section of minorities, lgbtq groups face greater stress because they can no longer have greater access to their social network. Lack ofok at sensitivity to the ethnic minority and some of these measures, as the covid19 theantine centers, religious and dietary needs for some of the ethnic minorities were not being taken care of for muslim people who consume halal food. These are the finetuning of the policies during implementation that needs to be taken to special needs of specific groups who are disadvantaged or marginalized. Quickly keep the answers brief if you would. We have women in hong kong earning 22 less than their male counterparts. We look further in the corporate world. We can see how board representations of females is behind that of men. How concerned are you and what should be done about that specifically . Take the one about boards. Do we need quotas, quickly please should quickly please. We have tried to set targets but there are still entrenched mindsets and attitudes and perceptions that are very resistant to having quotas and targets because they feel that there are special measures that would introduce reverse discrimination. When we talk about gender mainstreaming, we need to consider changing culture, changing mindsets. Emptygo beyond discrimination legislation. Support for education, Civic Education to introduce Mutual Respect and inclusion, which are more aligned with asian culture rather than just the right space of legislation. They just set the boundary but they do not change culture. You talked about the limitation of the policy response to this. We are expecting to hear from carrie lam, the chief executive of hong kong in her annual address around 11 00 a. M. Local time. Wouldexpect to her you expect her to address inequality . What can they be doing now to address some of these challenges . I think in the past few years, they continue and those meant those gender mainstreaming. What is important is we should go into more finetuning so that these mindsets, the gender sensitivity issue should trickle down to the management and frontline level and implementation, special needs of different groups of women should be addressed because gender equality is multifaceted. It affects different groups of women in different ways and we should look at this specific need. More importantly, we should also build a culture of inclusion, Mutual Respect and coordination, collaboration rather than just looking at individual freedom and rights. I think we should go beyond that into building more harmonious and inclusive culture. Tom thank you for your time and for your insight today. We are getting some lines crossing the terminal in terms of further restrictions in tokyo where the authorities are continuing to contend with an outbreak of covid19 cases. They may seek to close certain premises before 10 00 p. M. If serious cases arise. Atyo authorities are looking restaurants to close early for three weeks. We are talking about food and drake establishments for most of the city will be closed. P. M. Have to close at 10 00 this is from the tokyo metropolitan government. It ist is final in finalizing plans. We will bring more to you when we have that story out of tokyo purity coming up, we look at hong kong where carrie lam is set to make her annual policy social ander embed political unrest and a resurgence of virus infections and chinas plan for the greater bay area. We will have a preview with steve engle next. This is bloomberg. Rishaad hong kong chief executive carrie lam is set to deliver that delayed policy address shortly. Stephen engle as outside the Legislative Council building in hong kong. . Hat is being expected we are waiting to see what her tone is. Obviously carrie lam is not as embattled as she has been in previous years, especially last year when she was basically forced out of the Council Building behind me and did it offsite because of the protest movement happening a year ago. This time, it is much more calm. It is a tense calm after the National Security law was implemented on june 30. She is going to be here to lay out her vision that her boss, xi jinping, laid out last month in the city across the border in shenzhen, which kind of preempted her original date for her policy address because xi jinping was laying out his plans for the socalled greater bay area, greater economic integration. Hong kong, macau and the cities of guangdong province. She will lay out some of those issues. There could be a jobs program to help pay for recent graduates in hong kong to go across, live and work in shenzhen and guangzhou promised. Guangzhou province. Andcost to get that going start. That could be an expansion of the Stock Connect Program for secondary Listing Companies like alibaba and biotech companies. You might get those kind of specifics. The number one emphasis i am betting she is going to talk about is how to get beyond this pandemic and get the Economic Growth going again. Ofy just had another raft new social distancing restrictions announced yesterday including the closing of bars and nightclubs. We would like to see what her plan is to get the border back open and the travel bubbles and get hong kong back to doing what it does best and that is making money. Tom there is a lot on the agenda. Getting live pictures as some of the officials gather ahead of the annual address. We are expecting that 11 00 a. M. Our chief north asia correspondent will be across that for arise. Plenty more ahead in terms of the Market Action and all the top stories. Stay with us. This is bloomberg. It is almost 11 00 a. M. In beijing, hong kong and singapore. Welcome to Bloomberg Markets asia. Rishaad lets have a look at the top stories, hong kong facing new virus measures and ongoing social division of carrie lam delivers her annual policy speech. We have her address and reaction live. Tom joe biden names his Foreign Policy team as he seeks to come relations with International Friends and foes. He says america is back, ready to lead and not retreat. Rishaad we assess the outlook for india, where the economy is in the worst downturn in decades. Travel and leisure hit hardest by covid19, after national lockdowns. Tom lets check in on the markets. Wallositive momentum from street, where you saw new records, the dow smashing the 30,000 level. Mixed picture on the mainland but broadly across asia, there is green on the screen. The nikkei to do five up more than 400 points. In hong kong, gains driven partly by hsbc up 7 . And ini composite flat australia, gains of 7 10 of 1 . Rishaad just getting over to the open, looking at the start of the trading day. Positivity across the board. We have the bank of thailand saying they dont see any need for quantitative easing and also that the central bank will focus more on the distribution of liquidity, which is helping things. Here in hong kong, chief executive carrie lam facing very few shortages of issues to be tackling when she delivered her Economic Policy address. It has been a tumultuous year for the territory and she has to grapple with another wave of coronavirus. Weve also got news on renewed social distancing restrictions that kick in thursday. All of which contrive to threaten the economy, which was showing some signs of recovery, but this is also a city rocked by protests for the last half of last year. And we have the pandemic as well. Carrie lam should be coming up and starting her address any second and here she is. Ok, lets try to get some sound on this. Lets bring in our north asia chief correspondent, stephen engle. A host of issues, so many issues for her to be dealing with right now. Give us a sense of the challenges the territory is facing. Stephen yes. Not, andie lam or believe me, she is a polarizing figure in hong kong, but like her or not, you would not wish the troubles on her plate on your worst enemy. There are long and difficult challenges that have faced hong kong. You have of course the backed up against the u. S. China trade war, you have the protest, and now compounded by the ongoing pandemic. In itsngs economy is deepest recession on record. We are looking at a contraction , consensusn 6 estimates for gdp this year in the second quarter. It was abysmal. Airport at a fraction of capacity, trade is not happening, there are no tourists mother travel bubble philip the travel bubble fell apart. The latest wave of social distancing restrictions. There are challenges galore. Also keep in mind there is the emphasis conveyed on hong kong onpresident xi jinping october 14 when he was here across the border saying he wants to create opportunities for hong kong. But instead of what happened in the early 2000 when china threw hong kong a bone by opening travel programs and mainland tourists came in and spent, the biggest per capita spenders of visitors to hong kong, it was a huge boon to hong kong. This time he is saying we want hong kong people to go the other way across the border and reap the benefits of the economy there, and also develop a sense of kinship with the motherland. The dynamics are much different less than two decades ago. Hong kong is a bit on his knees right now and carrie lam will try, now that she is not as embattled as last year, when she tried to give her policy address in the building behind me but was shouted down by opposition lawmakers. She had to give her address offsite in a recorded video. That was a year ago, now is very different. The National Security law has combed the streets down and put a chill in the prodemocracy camp. She has very little opposition in the body across from me. Can she get her message across . The future of hong kong that the future of hong kong lies across the border. Tom ok stephen, stay there for us. We will listen and now to see what carrie lam has to say. Set to be the only major economy to record growth in 2020, the mainland has put forward a package of domestic and international separation. Benefiting from its proximity to the mainland and the Central Governments longstanding support under the one country, two systems printable, hong kong will be given new impetus and can continue to capitalize on the strength to serve the countrys needs with proactive inital proactive [indiscernible] and national development. In light of this development, i announced early last month the postponement of the delivery of this years policy address to allow more time for discussion with the relevant central authorities as well as the provincial government on policy initiatives that will support hong kongs development and the future. Delegations had indepth exchanges, and we received positive feedback. In our meeting, the vice premier of the state council remarked the Central Government will fully support whatever measure is conducive to maintaining longterm prosperity and stability of hong kong, improving the wellbeing of hong kongs people, and promoting better integration of hong kong into the overall government of the country. I will now give a brief account of the results which achieved during my visit to beijing and will explain the relevant policy areas later. And promoting the development the gba, the Central Government supports the implementation at the end of this year of 24 policy measures that have been approved in principle by the leading group for the development of the greater bay area. In addition to what was rolled out earlier, including property purchase, support for young entrepreneurs, technology funding, and liberalization of services, further measures to be medicaled include devices in Hong Kong Owned institutions on the mainland, limitation on exporting Genetic Resources to hong kong for research purposes, facilitating and kong bridge, expediting cross boundary wealth management. On consolidating and enhancing hong kong status as an International Financial center, the Central Government supports further deepening the mutual access between the mainland and Hong Kong Financial markets and further expansion of the scope of Eligible Securities under the Mutual Market Access Program and agrees to accelerate the pace of the inclusion of Technology Companies within hong kong and the stocks listed on the meeting the scope of Eligible Securities under the program. Status, theg the Central Governments participation at the Hong Kong International airport and development of airports by investment according to market principles chiefhat is hong kong executive carrie lam with her annual address. We will continue to keep you up to speed with anything that comes out of the address that is pertinent. What she has said so far is important to the markets. She has said they will expand in hong kong the scope of the connect program with china. Between hongnnect kong and the mainland, they will add stocks to that. Suggesting that indeed in expansion of the connect service would be part of the policy announcements. Lets bring back our chief north asia correspondent, stephen engle. We also got some lines about making it easier to access certain products from the mainland, that transfer of goods between hong kong and the mainland in the greater bay area. How significant is that for carrie lam Going Forward . Stephen absolutely critical. The hong kong economy is intertwined with the mainland economy but we have a border that is pretty much shut right now because of coronavirus. A number one priority of everybody, no matter which side of the political divide you are on, is to get the pandemic under control and get the economy opening up and the border back opening up your these are longerterm opening up. These are longerterm goals and things are controlled on the virus front, and that includes, even without the virus controlled, that you can expand the stock connect through secondary listed companies, that was speculated, Companies Like alibaba and others may be listed in hong kong and the united states, and also biotech companies. Who can investors invest in hong kong and vice versa. Also the jobs program should be a key part of the speech coming up, and that is to get young graduates here to work and live in the mainland, work in technology, work in finance and maybe the Hong Kong Government will pick up some of that t ab. Onn xi jinping was here october 14, he talked about the need for a deepening integration between these chinese regions. Yes, there is a border but they are all Chinese People and hong kong needs to go more mobile and across the border. That will be an absolute killer of this speech could the backdrop is the pandemic and getting the Economic Growth going again. That will be an absolute pillar of this speech. The backdrop is the pandemic and getting the Economic Growth going again. Stephen engle. S carrie lam sang some other things, saying hong kong is looking to expand the scope of the connect program, the Stock Connect Program, and widen links to china as a result. Also, adding eligible biotech stocks to the stock connect as well. As she did start, she said the policy address is all about restoring confidence to the territory, or in the territory at least lets move to at least. Lets move to more confidence in the american political process as the transition is underway. Lets join Karina Mitchell for the first word news. Joe biden has introduced his Foreign Policy and Security Experts as he seeks to calm relations with International Friends and foes after four tumultuous years. The president elect is promising a multilateral approach reversing the America First policy of the Trump Administration and he has told nbc news he will prioritize ending damaging executive orders and will not insist on investigations into President Trump. Meanwhile, treasury secretary Steven Mnuchin is putting unspent cares act cash into an account that is presumed successor will need congressional authorization to use paid he is putting 450 5 billion into the general fund, which could make it hard for janet yellen to access on her own. Joe biden is Transition Team last week called it deeply a responsible. Japan and china have agreed to lift some virus restrictions for Business People by the end of the week. A Chinese Foreign minister will meet the new japanese prime as beijingter today seeks to recalibrate ties with key u. S. Allies ahead of joe bidens inauguration in january. The two sides remain follow far apart on the east china sea. Says hechinese premier expects the economy to see positive growth this year despite the covid induced drop in the first quarter. After talks with the world bank and imf, china has been hot hit hard with a virus but is on recovery. He reiterated further opening and allowing consumption and a bigger role will not drive expansion. As the end of the year approaches, based on current data, we can say with certainty and confidence that chinas economy can achieve positive growth in 2020. Forward to a reasonable operating range next year. Karina global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Got a lotk, weve more to come this hour. How is Indias Battered Hospitality Industry coping with covid19 . Guest from the Hotel Association of india will be joining us. Tom next, look at the markets with a macro asia strategist could we will get all of that details. This is bloomberg. Tom welcome back. Hong kong chief executive carrie lam is continuing to deliver her 2020 policy address. And delayedurth address and we heard her talking about plans to open up the stock connect between hong kong and the mainland. A couple of lines that have dropped from the policy announcement, hong kong will add eligible biotech stocks to the stock connect, and the city will expand the connect program broadly with china, to include fitech stocks as well. There was reports to suggest secondary listed shares also be added. We have yet to hear that from carrie lam. She is talking about the greater bay area as well and hong kong were closely aligned with the city across the border and the mainland as part of the Greater Bay Initiative. We are also expected to hear and she has touched on this, initiatives around the virus. There is a fourth wave as some it, and hongrize kong. So additional measures of social distancing have been outlined and there may be more from the hong kong chief executive. We will keep you across this as the address continues in the city lets get back to the city. Lets get back to the Market Action. A rally picking up steam and cash continues to flow in the cyclical sectors. Ee ining inhomin l homin lee. What is your take on the Market Action the last one he four hours . Markets areggests looking forward and despite the challenges we have seen this year and especially in the fourth quarter, in many places around the world, including hong kong itself, people are excited about the prospect of a return to normalcy at some point next year things to vaccines could also vaccines. Also Political Uncertainty in places like the u. S. Is supporting the sentiment. What we noticed and stands out from our perspective is the breadth of the market rally compared to all year. Then the policy contacts, vaccine outlook, we think this rod based rally that also includes the cyclical sectors and some value styles will continue well into next year. Of aink this is the start rally that could easily make here another doubledigit returns year for many key indices around the world, including those outside the u. S. Tom right, and we some more evidence of indeed that shift, the rotation from growth to value in cyclical, as you said. Youve also pointed out the you, morefor attractive way of allocating capital at this point. Can you unpack that . Homin sure, on a tactical basis, more aggressive exposure to these cyclicals and value will work out for many investors and that is something to do in the near term. But if you look beyond, say, the vaccination story next year, we still have this political dialogue about changing the supply chain and the economic structure. That conversation also includes discussions about potential climate related regulations and some National Security issues and geopolitical issues between countries, especially with five tech fitech. Those will become even more important further in the future and investors should be prepared for the eventual shift in the conversation. , tactically,yes aggressive exposures to cyclical makes sense, but in the longterm, investors should still focus on companies that will do well in this new economy, that will emerge. They need to focus on winners. Fore it is an opportunity longerterm or investors to add these names. Second, consider sustainability is a real factor in investments. When we hear the news about john kerry becoming an envoy for climate in the National Security council in the u. S. , or , thesering a carbon tax will have definite implications for the markets in 25 years. We still think is important for investors to have and the portfolio and we have begun to make allocations to these thematic stories for the equity part. Rishaad talking about equities, drilling down and getting more local on the hans saying hang seng, carrie lam talking about expanding the Stock Connect Program with china. How does that move the dial, having biotech companies, and also stocks on the mainland, fitech innovation board as well, does that excite you . Any marketously opening measure is a step forward for equity markets. We certainly welcome this new development. From our perspective, its another point in the long journey toward full capital ket liberalization ain in china. It is not a huge game changer in the near term. It also supports our view that tech space in china requires standalone allocation in the portfolio because that space will continue to grow, despite geopolitical noises around it. The market environment will continue to be better, especially liberalization. We think the equity market will continue to get a lot of attention from investors but we are beginning to create standalone allocation for china for this reason. Back to theting global picture with the best ever month for stocks, we are looking at the u. S. , the transition, but theres a lot of talk about even when joe biden becomes president officially, he will be stuck with a recalcitrant senate. But you see some elements of bipartisanship. Tell us. Homin yes. We think some investors worry too much about potential gridlock scenario. We dont think thats the case. Biden is a famous bipartisan dealmaker and washington, d. C. , before he became president elect. If you thing about this senate composition, and we saw a hint , it seems the voting there are two or three republican senators not aggressive enough to support democrat fiscal matters measures, but they might support cabinet appointments. Mitt romney and Susan Collins in maine and Lisa Murkowski in alaska, those are three senators with whom id and can potentially create this compromise whom biden can potentially create this compromise and especially leak murkowski. The state has become more like maine, meaning the senator needs to worry less about the partisan environment and party challenge. Thats another reason why he has senators he can work with. Much,d thank you so lets get over to morning calls with sophie kamaruddin. She is tracking the top recommendations. What are people saying . Jefferies, they say demand is a key factor, without out pacing supply, they see copper prices going higher given the shift toward Renewable Energy and ev. Flipping the page, they expect the Copper Market remains in surplus next year. They see prices falling toward 6100 by the end of 2021 with the potential for more on liquidation after such recent episodes. I also want to highlight the gold patch, trading at 1800, a rate below that could mean more selling. Goldman said after the recent turn, not a turn in coal prices, pressure gold prices, the pressure is behind us and they think old could go higher if evidence of inflation emerges. Tom sophie kamaruddin. Lets check in on the mainland markets. Seeing a bit of risk off in china. The csi 300 down 2 10 of 1 . Shanghai and shenzhen also lower, as is the chinext. In hong kong, storming on the back of the restructuring fans come a lot of confidence from investors in the bank, which had been a lackluster this year. Some other stocks in focus today. Plenty more ahead, stay with us. 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. Rishaad hong kong chief executive carrie lam delivering her 2020 policy address to the Legislative Council. It had been delayed. It is expected to focus on what support measures she is unveiling for the city after she visited the mainland recently as well. They will be expanding the scope of the china Stock Program and talking about boosting other china links as well. Hong kong wants to boost wings with china and also have loyalty as well. This follows from the National Security law that came into force at the end of june here in the territory. This is the scene. Lam, go with carrie delivering that fourth policy address of hers. If you want to keep watching it and you are a bloomberg subscriber, just go to live go. Weve got warnings out there coming that the World Economy is far from being out of the woods. Lets get more on that story as we get to new york and join Karina Mitchell for the first word headlines. Karina you are right, and that is despite a record run on wall street. It is sounding the alarm on a new level downturn now that Central Banks and governments have set aside policy just for demand. Optimism about a vaccine is offset by fear that delivery could take months while infection rates continue to soar. Economists say it wont take much to spur areas to contract again in this quarter or the next. Meanwhile, the u. S. Has confirmed its decision to threat tozte as a National Security over a concern their clinic could be used for spying. To commission is determined huawei out of the market. The u. S. Will consider listing prohibited next month. Australian coal is stuck on than 50f of port more vessels have been waiting a month or longer to offload cargo, about 6 million tons of coal and 1000 carriers stuck at sea after china blacklisted australian commodities. Tokyo says it is certain and can host a safe Olympic Games next year despite rising covid19 infections. The governor says she is determined to put on a show whatever it takes, as authorities try to balance preventative measures against further damage to tourism and the economy. The international elliptic Committee Says athletes and fans will be encouraged olympic Committee Says athletes and fans will be encouraged to be vaccinated. Taiwan has welcome to the first foreign visitors in months with the economy on his knees good october saw about a thousand fly in, a minuscule number compared to the 3 million last year. Thailand has relax most restriction measures but maintains a state of emergency. Global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Rishaad thank you. Lets get to the Market Action, looking at the major indices as we see a sea of green in essence. Its a situation where we are getting a lot more clarity, perhaps with the transition being put into place in the white house. Buoyedot indices being by relief over a vaccine as well. We are on course for the best month on record ever for global equities. Seng justng up, hang 1. 3 . India, we should have price discovery in the market in mumbai. Futures contract up half a percent. The mildly to up to the upside. 10 year as well. The nifty is expected to open in Something Like 12 minutes from now. Tom. Tom you mentioned the Political Risk later in the u. S. And president elect joe biden has introduced a team of Foreign Policy experts he wants for his administration. He has declared that america is back and he is promising a multilateral approach to big issues such as the pandemic and Climate Change seeking to calm relations after Donald Trumps tumultuous presidency. It is a team that will keep our country and our people safe and secure, it is a team that reflects the fact that america is back, ready to lead the world, not retreat from it. Once again sit at the head of the table. Ready to confront our adversaries and not reject our allies, ready to stand up for our values. Our senior asia reporter joins us now. Bidens National Security team is taking shape. What messages are you hearing about what it could mean for china policy . Michelle good morning. Thats right, so far the pix seem to be calming the markets and we are getting a feeling of business as usual from the trump transition to a Biden Administration. Is now going to be receiving the president ial daily briefing, which is an important marker of the transition and something usually offered it to the president elect just after election day, but of course weve had election week and election month. What is striking about these pix is they are largely not big names, they are steeped more policy than politics. Quite a few had experience in the Obama Administration, and antony blinken, nominee for secretary of state, i remember covering when he was in the vps office and he always briefed the press in a very technocratic fashion. ,hats the style we are getting the clip you played, we are constantly hearing this attempt to reverse the America First message and go more toward america is back policy. We will hear more about multilateral efforts, and on the china front, we are awaiting more detail about how the Biden Administration would tackle china specifically, but there is the message they will rejoin multilateral whooping, that they will reject the style trumps had in terms of doing bilateral negotiations and sort of trump and the world negotiations. They are looking for a way to work with china on climate issues. Biden has nominated john kerry to be a climate envoy could the other envoy. The other thing that remains to be seen as if they will ramp up pressure on human rights issues that the Trump Administration largely left alone. One area we are looking at is how they will tackle the tech issue visavis china. Rishaad joe biden has taken pains to say this is not obamas third administration. Transitional Development Say about the biden team and how they tackled the Pandemic Recovery and how they get further stimulus across as well . Some people have described the team as being competent institutional leaders. Michelle thats right, certainly not a third Obama Administration, i think they tried to avoid those comparisons, particularly in a pandemic, where it will be bidens number one priority, no doubt. The staff has been talking with anthony fauci, and the biden team is continuing to make its mark, drawing on officials and experts in a way they think the Trump Administration has not. As far as stimulus, certainly a lot of talks, especially the past few days on how the way forward looks. Looks on that front. Janet yellen as treasury secretary was well received by markets, and now people are talking about how she will push authorities to step up in the recovery as she criticized the former central banker and others around the world have said. Some moves by outgoing secretary treasury have complicated that. We see that he is pushing for a yellen treasury without congressional approval to tap some 455 billion of un stem unspent stimulus funds. We saw the fed agreed grudgingly urn feds to the funds to the treasury as a backstop you a lot of these develop ands are making it harder for a biden team to push through stimulus and that matters. Because it looks like the senate will have a republican geordie, pending the georgia runoff vote. Republican majority, pending the georgia runoff vote. Im sure we will get more development in the days and weeks ahead. Rishaad indeed. Thank you, michelle. How Indias Battered Hotel Industry is coping with rising waves of coronavirus infections. We will be point exclusively to the president of the Hotel Association of india. This is bloomberg. Is Bloomberg Markets. Indias hotels have been one of the were sectors hit by covid19, the Hospitality Industry crippled and many forced to think out of the box. Our next guest is a wellknown figure in the industry. He is the managing director and ceo of the Indian Hotels company. It operates iconic hotels. He is also president of the Hotel Association of india and joins us from mumbai for an loose of interview. Thank you for joining us. For an exclusive interview. Thank you for joining us. How bad has it been . Puneet in the last hundred years, the industry never experienced such a decline, almost 0 compared to last year and of course that is the consequence of an enforced lockdown. Down and notut able to operate the business, the revenue will see a dramatic fall. At some point in our careers, we lean learn to deal with 20, minus 30, minus 40, but its hard to do with 80 in revenue. Quite a challenge for the industry in general across the globe, that as youve shown on your program, some economies driver of gdp,ey they are hurt even more because of the covid19 situation. You seeing the recovery and if you are seeing a recovery, what parts of industry are the ones rebounding best . Puneet lets look at some of the positives the last few months. March two, march, it was definitely higher than quarter one. Quarter three is showing similar trends. We are moving in the right direction. This is mainly driven by the festive season, especially in india, able to induce pentup demand that was really driven by domestic Leisure Travel and not corporate travel. Within the leisure, mainly holidays taken by driving to a destination or a staycation in the same city. We also started a season in india, where small weddings started happening. On the negative side, theres been a complete demise of International Travel as waters are shut, which leads to limited corporate, Business Travel, incentives, conferences and events. And because of restricted numbers in some cities, 50 or 100, the glamorous, fairytale weddings are not happening as used to happen previously. At the moment, that is the negative. We are cautiously optimistic in the next few months that we will be getting back definitely the wedding business and the corporate and Business Travel might take longer. Quickly, some groups have really had to think of other ways of generating revenue, thinking outside of the box. One have you been seeing in that regard . Hotels,i think a lot of for example, went into Home Delivery of food. Because not done restaurants were [indiscernible] most of the good restaurants, the food was brought home. Laundry,services from the daytoday needs that were salonled by going to a were brought to your home. Thats one of those things which really worked a bit for the industry. Jobindustry did a fantastic to thelying meals medical staff, hosting the medical staff. In hindsight, some of the governments also decided to [indiscernible] that helped in creating some revenue. Last but not least, i think this has been a historic opportunity for the industry to review the cost in more detail than ever before. We willas we come back, have a different cost base, a fixed cost level as well as a variable cost level. That is definitely, we have to say that covid19 made us realize how les can be more. That has helped a lot. How less can be more. That has helped a lot. Tom i want to talk about the have aructure, but we line crossing the terminal. In hong kong, a company of more than 6 . It has submitted an application for a covid19 vaccine and its use in china. That is according to a news agency. Again, the stock rallying on the back of that news. Vaccine. G for a about jobs in the sector . At what point do we get back to prepacked prepandemic levels if we do . Puneet theres a big difference between the larger and smaller players. I think the smaller players and the unorganized sector, which is very big in india, i think a lot of jobs were lost where tourists would come in and use a traditional indian rickshaw and its a tourist is not coming in, his driver is not getting daily wage to the extent he used to get. There has been a big impact on the jobs in the on organized unorganized sector. In the organized sector, the larger have done quite well. In our company for example, we have not laid off staff were taken on many cuts. However, some Companies Like ours which have a very large growth pipeline, have been able to redeploy staff. Weve also been able to redeploy executives in highgrowth industries. So some of those creative ways of managing on the cost front when it comes to employees has worked out quite well for us. We could always do better but that is how the ee those of the group has been and we are very ethos of the group has been and we are very proud. Its not just the cost, its the cost of so much of service sometimes in asia. When you touch less service, you get more digitization in place, and there are many other things you stop doing. When you stop doing those things, you reduce cost, and some of those are part of the asndard of living procedures claimed by the who. Hasand all, cost structures worked quite well in the last eight months. I want to get your views on the vaccine, we just had this news out of china around a company applying for the application. When it comes to the vaccine, what are you putting in place in terms of lands to get your team and your group vaccinated . Have you started to think that through in terms of how you might put that plan into place . Puneet i think as we speak, those subjects are being discussed at the highest level in the government, the state level, and also different groups, especially larger groups like our group. Maybe week or 10 days, two weeks ahead of the time, and i think it will be more appropriate to talk about the plans and a couple of weeks once we have the clarity from the highest level of the government, and then trickling down to the state level and the groups. We appreciate your time and insights. Hotel association of india president and ceo of an Indian Hotels company. Joining us exclusively from mumbai. Coming up, hong kong chief executive carrie continues to deliver her policy address, which she says is to restore confidence in the city beset by an economic slump in the pandemic and economic unrest. We will have the latest. This is bloomberg. Welcome back, lets get a quick check of the latest business flash headlines. Xiaomi has posted its biggest growth in two years. Sales rose to 11 billion. More than half originating outside of the home market for the first time. They have been a major and a fish area of the u. S. Drive againsthuawei, with unit shipments soaring 22 globally in the third quarter. Jd health has released details of its Hong Kong Ipo to raise around 3. 5 billion u. S. Dollars and will offer 382 million shares of between 6371 hong kong dollars apiece. Six cornerstone investors have agreed to subscribe to around 1. 4 billion in stock, including singapores wealth fund igc, and blackrock. Itself will be december 8. Singapore airlines returns to the credit market for a second time this month as it looks to bolster cash. The carrier raised 370 million u. S. In a private placement of 10 year bonds, having brought in 630 million u. S. Two weeks ago through a convertible note. Singapore Airlines Reported a record quarterly loss this month of 1. 7 billion u. S. Dollars as the virus continues to decimate travel. Kong chiefng executive carrie lam is in the mist of her annual policy address and is hoping to restore confidence after a host of challenges facing the city. Our chief north asia correspondent is outside. What have we gleaned, what is the latest . We have been listening in, of course and it has been going now nearly an hour and could go upwards of another hour. It is a laundry list of issues this chief executive has to go through and she is touting the importance of better and deeper integration with mainland china, but of course at the backdrop of every issue that this government and city is facing is the current pandemic and the new social distancing restrictions imposed on the city late yesterday by the government that includes closing down of bars and nightclubs. We have to get the virus under control, she says, before we can open up the border with china and other crossborder initiatives like the travel bubble that was scrapped with singapore. Is thein, the main point Greater Bay Initiative and the integration with mainland china, whether that is the stanchion of the Stock Connect Program or the jobs program, whether they want to encourage hong kong graduates to work and live in the Border Regions of southern china. Xi jinping on october 4 said he wants to deepen the integration with hong kong and the program or delta cities. Length about the importance of the National Security law which was imposed and thekong by beijing National Peoples Congress Standing committee on june 30. She praised that as delivering the city from chaos and she says the National Security law was remarkably successful in restoring stability and she says beijing had no option but to step in and take action. To was not very conciliatory the pandemic or protest movement at large, saying beijing had no choice and that the National Security law she went on a lengthy time on the National Security law as well as the more recent legislation coming from beijing requiring a pledge of loyalty for members in the body behind me him of the Legislative Council, so not a lot of surprises from carrie lam. But it is going on, along laundry list of issues in the city here. Tom it is indeed and well analyzed, stephen, as ever. Stephen engle in hong kong with the analysis on the speech that continues by carrie lam. Lets check on the markets. Subscribers of bloomberg can continue to watch carrie lam at tliv. On the screen for the hsi in hong kong, a mixed picture in terms of the mainland. Csi 300 below the 5000 level, down 3 10 of 1 . Someone saying he expects rebounding growth in 2021 essentially. Plenty more ahead. Stay with us. 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. Wannits timeight and for aerotrainer. A more effective total body fitness solution. announcer aerotrainers ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time. It allows for over 20 exercises. Do the aerotrainer super crunch, push ups, aero squat. It inflates in 30 seconds. Aerotrainer is tested to support over 500 pounds. Lose weight, look great, and be healthy. Go to aerotrainer. Com. Thats aero trainer. Com. Taylor i am taylor riggs in for emily chang. This is bloomberg technology. Coming up in the next hour, president elect joe biden puts his National Security team in place. This after President Trump agrees to a formal transition. The dow crossing 30,000 for the first time. A true believer. Longtime bitcoin champion dan morehead on the rally. 19,000, but is the best still yet to come