Little point in continuing to talk. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. Rishaad carrie lam with a lengthy policy address on wednesday. She laid out her vision for greater integration with the mainland. Benefiting from its proximity to the mainland and longstanding support, hong kongs Economic Development will be given new impetus. The key is to somehow open up the border with china, because we are part of china, and the homecoming hong kong economy was not just set for domestic consumption. It was really set for 1. 4 billion people across the border. In any case, most of the key Investment Decisions will be driven by how china is operating and the Big Companies in hong kong are all chinese oriented. So i dont really think a policy address will be of that much difference to investors as it might be elsewhere. Stephen engle has been covering that story. Carrie lam did cover a lot of ground, sparse on details. What can we expect . Stephen i believe this is a live feed we are getting right now of carrie lam. She is now talking to lawmakers. Has someurse explaining to do on some of the announcements that she made. A lot of the news words he newsworthy announcements were things like the removal of the stamp duty. That as theadjust supply cost ratio is still fairly tight. Add mainland exchanges will throw some money at the Tourism Sector which has been battered by the pandemic. More money earmarked for the crated creative industries. The broader brushstroke messages and the bulk of more than two hours speech yesterday was about her vision for greater integration of hong kong with a greater bay initiative, which of course was outlined in greater detail by xi jinping last month on october 14, which preempted the original policy address from carrie lam which was delayed until yesterday. Not a lot of details on how they will carry out this blueprint for greater bay integration, other than to maybe get more recent graduates up into china to develop a kinship with the motherland, at the expense of the hong kong government. But obviously the local theslators, minus pandemocrats, who all resigned, will be asking more questions with in greater detail. Rishaad you have are the you covered the whole speech, and was a very long speech. What struck you the most about the policy address . Stephen its interesting. Bloomberg likes to chart everything. Our references to the words mainland, china, National Security, greater bay, since government, absolutely soared, compared to her speech last year. Granted her speech last year was interrupted in the Legislative Council room because of protesters who shouted her down. She had to end up giving her address by recorded video offsite. But she really emphasized and thanked the Central Government in beijing, and thanked president xi jinping. It was a stark contrast to past policy presses from both the british governors who were here and the past chief executives. In the first post handover policy address back in 1997, there were just four paragraphs referring to one country, two systems. Wheres the first hour plus of carrie lam speech delved deep into one country to systems and the leadership from beijing and the Central Government. No doubt this speech had beijings approval. The speech was full of approval for the National Security law which she described as remarkably successful in restoring stability to hong kong. It is yet to be seen how the Business Community will react. They are pragmatic and they will go where there are investments and good money to be made. Kong wantedhong more of a conciliatory tone from her, given the fact that beijing and this local government at least in this phase of the. Attle, have won the prodemocracy lawmakers have quit. She has a favorable legislative body before her right now, and her policies are being pushed forward rishaad . Stephen, thank you very much. Bank of korea came out with an Interest Rate decision, keeping Interest Rates on hold. The bank of korea governor is talking at the moment. Just talking about that decision. Eing one of unanimity they are upgrading their 2020 gdp outlook, saying they will until theret stance are signs of a genuine recovery. Backdrop ofgainst a saying the Economic Situation is not a fullscale recovery at the moment, saying that the 2021 outlook is being revived because of global expectations. Going on to say that the virus impactsew with record numbers of cases taking place in south korea at the moment. The bank of korea theyre just holding a new News Conference. Rishaad coming up, and extraordinary period. Way next. The this is bloomberg. Rishaad tensions between canberra and beijing remain under strain. This after austria calls for an investigation into the origins of the coronavirus and band huawei from providing 5g equipment. Our guest is the author of chinas grand strategy and australias future in the new global order. Certainly an impressive book payment what is your central argument in it . The central argument is that the world order has changed. Totria has to work out how navigate its way in a world order that is designated by two great powers, the u. S. And countries thatr dont share our values. We no longer have the comfort of a world dominated by the u. S. For us, as i say in the book, australia is facing a disturbing future in terms of policy, especially as most of our theomic interests are in east asian region, especially with china. Yet we dont share values and our systems are quite different. They used to say canberra didnt have to choose between washington and its economic partner, china. That argument doesnt hold muster anymore, does it . I think it still does. We dont have to choose. We have to position ourselves between these great powers. Across the pacific from the u. S. Inchina, what we have done response to that, unlike many of our neighbors, we have basically joined ourselves to the hip of the united states, as the previous dominant power, the u. S. Has resisted the ascendancy of china. Be viewingave to china through the same prism as the united states. Has declaree 2016 china is a strategic competitor. China is not a strategic competitor for australia. Managed to maneuver ourselves into position where we have become effectively an outlier among those countries that also had problems with china. Ourave not managed relationship very jointly. Rishaad youve got australia in the intelligence partnership, and through the lens of beijing, int shows you are firmly with the u. S. Perhaps some clumsiness such as the calling into an investigation into the covid19 outbreak, and on top of that is management of a proposal to investment has not done them any favors, has it . From the beijing perspective, australia has clearly identified itself with u. S. Policies of containing china. I have been a big critic of australia joining the quad. Three members of the quad our china strategic impediments. We have none of those things. We do not share those problems with china. We dont have historical issues, but we have embraced the notion is very much about limiting chinas rights. Rishaad chinas response to those things must have been pretty ferocious, slapping tariffs and restrictions on export such as wine, timber, barley, and even coal there. Ultimately, australia has almost become the canary in the coal mine for a more resurgent and hawkish China Foreign policy. It does look that way, of course. China has used economic conversion for a long time. Economic coercion is regrettable and unwelcome as it is. The relationship has tended to spiral downwards, not just this year, but over the last four or five years, and there have been a series of events where we could have handled things more diplomatically. Not in any way trading off our interest or security, but we didnt. I think now theres a price we are having to pay. As beijings foreign policies start to harden, canberra also has gotten more hawkish as well. A lot of people have criticized what is going on, saying the Intelligence Committee has taken over policy at the expense of diplomacy, and arguably, commercial ties. Would you agree . Geoff that has been going on for a number of years now. It hasnt just happened. , at has changed this year reasonable call for an independent inquiry inquiry into the origins of the coronavirus. The problem is the timing and the way we didnt do it with other countries. Ishink that unleashed what referred to as wildfire diplomacy. There have been a series of retaliatory actions against china by australia. They have been in a downward spiral in the relationship. Particularly in areas like foreign investment. Austrianntly when the of aurer blocked the sale foreign asset. Rishaad there has been a lot of good talk about the socalled 14 grievances that beijing has outlined to canberra. Is this a message to stay out of our affairs, as much as it is virtually to every other country . Geoff i see it as another one of the titfortat measures that was badly judged by the chinese mc in canberra. Grievances is wellknown and well discussed, and there are no surprises on the list. I think it was probably a reaction to australia the part statement from hong kong. All are unfortunate because if you look at the last week, both the they have been making statements which indicate a message clearly to beijing that the Australian Government would like to see this relationship put back on a more even footing. And that follows measures from china itself. Back in august and last month, china medical of overtures to australia. I think they were missed in the heat of the moment. There were important comments of Prime Minister has made, recognizing the tremendous success of the chinese economy. I think there is an attempt on both sides to try to find a way to get this relationship back on a more normal basis. It is in everybodys best interest to do it this way. Rishaad what is the roadmap here . Ofdid see after the release those 14 grievances in that document, one of chinas governmentsponsored scholars describing Australian Foreign policy as being bizarre, immature, belligerent, juvenile, and mindless. How do we go back and reset . I think through a series of and there have been positive overtures by the chinese government. The Foreign Ministry spokesman in beijing recognized what the Prime Minister had said and welcomed the Prime Ministers remarks. But there is a light going on. Even though there were times that it was scripted by the. Overnment and china we are in a very tense situation. I think the leadership of both sides need to keep signaling to each other that they are looking to find a way back to a more normal relationship. Thank you so much for joining us, ambassador. A bit more coming through from the bank of korea News Conference after the Monetary Policy decision, no change in Interest Rates. We have a view taking place as far as the countrys currency is concern. It has appreciated by about 10 in the last six months. The Central Bank Governors there saying its a bit fast. Saying they need to ask in its always negative to export in principle, but not quite as bad as it used to be. Also they are more concerned about Household Debt, and those concerns are legitimate as we have domestic debt accelerating. Also saying theres a chance of contraction Global Exports next year, but not a high chance. Today up, a crucial vote over a budget that may break his career. Details on that coming up next. This is bloomberg. Rishaad the malaysian government facing a vital test thehe Prime Minister rings spending plan to parliament. Holding a majority among lawmakers. Happen if this budget does not get enough votes . The Prime Minister hasnt said what he will do if he loses the budget vote, but according he would have to resign. A new government will have to be formed based on who gets more support in parliament. It does look like that something they want to avoid during the ongoing pandemic. What are the odds of getting the numbers to back the budget . Its going to be fundamental here. In july, there was a majority of just two votes for House Speaker. [indiscernible] thats just one mp. So they have been getting criticism from both sides for not abiding of support for the people and the economy. Rishaad if the budget does get past today, his troubles or his troubles over with . There is someone waiting in the wings. I would say not exactly. This is actually just the beginning. If the budget gets past today, then enters the committee stage. On top of that, he could call on his allies to restore the general mandate and hold an election as soon to covid19 up pandemic is over. So his troubles are far from over and he has a long day ahead of him. Much. D thank you very a quick check on the markets, asian equities perhaps just holding their own just about. Certainly at the moment there was a bit of weakness outside of japan, which is on the way up. Asx 200 in sydney down. 2 , the Hong Kong Market has barely moved. This is bloomberg. [narrator] this is kate. Hey. [narrator] she takes two prescriptions. Kates son jack, takes one too. Kate works hard, and thought she had good insurance. But she still pays too much. Thats no good. So kate downloaded the goodrx app. Now she can compare prescription prices, to find the best discounts. She even beats her insurance price. Good for you kate, good for you. Goodrx, stop paying too much for your prescriptions. Download the free app today. Rishaad almost 11 00 a. M. In hong kong and beijing. This is Bloomberg Markets asia. President xi finally congratulates joe biden, saying he hopes the two can manage differences and calls for cooperation and stable relations with no conflict or confrontations. Data, sentiments did little to alter the disappointing view. And prospects for india, amid its worst economic downturn in decades. The inside view on energy and manufacturing sectors is on the way. Actionheck on the market , this is a look at the msc i asiapacific index. Its moving to the upside with regard to japan in the mix, it would be higher than that. Shanghai down a fraction, the asx 200 also losing a little bit of steam again. The one we dont have is the kospi which is to the upside after the decision Rate Decision to hold. Looking at the thai open, bangkok just getting open,. 10 up. Government with the travel bubble on asian nations. Movementsed a bit of is people consider stocks there to be cheap. The nifty opening and 44 minutes there in india. And the yield on the 10 year indian note premuch unchanged. Lets look at the first word headlines with karina mitchell. President trump has pardoned his first national, michael flynn, who admitted lying to the fbi about a conversation he had with the russian investor. Democratic House Speaker nancy pelosi says the pardon is an act of grave corruption and a brazen abuse of power. Meanwhile, global reported coronavirus cases have now topped 60 million with infection soaring in the american southwest and the Rocky Mountains as people five warnings against traveling for thanksgiving. European union says relaxing curbs could unleash a new infection wave in germany germany saying it the partial lockdown has been extended to december 20. The latest fed minutes shall policymakers discuss providing more guidance on bond buying at their meeting earlier this month. The note saying many villains may be reason to enhance guidance fairly soon. And increases in Securities Holdings could eventually taper off. The fed is scheduled to meet again in the middle of next month. Police in thailand have revised laws against saving the monarchy is thousands of protesters rallied outside the kings bank. Warrants have been issued for 12 protest leaders for crimes against the crown and for insulting the royal family. The king is the biggest shareholder in siam commercial bank. It closed its bangkok headquarters demonstrators gathered outside. The malaysian Government Faces a bottle test later thursday is the Prime Minister puts his 78 billion spending plan to parliament. Plans for the countrys biggest ever budget come with them having only a knife edge majority among lawmakers. It would be unprecedented for sitting Prime Minister. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. Chinese president xi jinping breaking his silence on the American Election results. He congratulated joe biden, saying he hopes they can manage differences and focus on cooperation. What was the tone and the content in this message . People have been wondering why it has taken him so long to issue it. The Foreign Ministry had joeier recognized that biden had won the election, so there had been some communication, but you are right, this is the first message of congratulations between xi jinping of the chinese president , and joe biden, the president elect. The tone was fairly cordial and he congratulated him and said he hoped they could manage their differences and abide by the principle of no conflict, no confrontation. So there was hoping that message, but it was cordial but not necessarily warm. It was a reaching out, saying lets work together. Will take over a relationship with china that has been fraught and that has been increasingly tense as the Trump Administration really went against china on a number of fronts and really imposed those tariffs, and sometimes held back delayedahead and tariffs it said it was going to impose. But in the income and has been a troubled relationship, and joe biden will have to decide how much of that he wants to change. Experts tell us its very unlikely he will go back to the ofma administration era cooperation and trying to improve that relationship come that he will be taking a tough stance on issues including the minority uighur population there as well as hong kong and things like intellectualproperty concerns. It could be characterized as a trade war with technological characteristics. Certainly Many Companies in the crosshairs, one of them tiktok. And is the status on that, what could happen when joe biden takes over as president . We have some news there. That Court Deadline for basically ending the ability to use tiktok in the u. S. , something which donald trump has been pursuing that has now been extended another week. For the Court Hearing to determine what happens if there is not a sale of tiktok. Donald trump has required there be a sale of the u. S. Operations of tiktok for it to be able to continue to be used in the u. S. , but of course that hasnt happened. There has been rifling on the chinese side, trying to sell it to some u. S. Companies, but right now is being held up again. The Biden Administration could just ignore this when they take over on january 20, if it hasnt already been determined in court, that could just lapse, and presumably if it has not been stopped or there has not been Resolution Court by then, its unlikely the Biden Administration would continue this fight. We havent seen any evidence that they would. Rishaad jodi schneider, thank you. We will be focusing on india this hour. Well have an insider look at the manufacturing side of things. But next, Global Investment strategy. This is bloomberg. The rally that propelled Global Equities to alltime highs this month is showing signs of stalling. Minutes from the feds latest meeting did little to alter that view. Lets discuss that with steve bryce from Standard Chartered private bank. This avalanche of u. S. Data yesterday, overall it was pretty good, that there were certain cracks there. Steve the big picture is were still recovering from the pandemic lockdowns. Thes baret see capacity in the global economy. Months and possibly years to, it will take some time to get back to a normal state of an economic perspective. As the pandemic situation deteriorates a little bit, that does have some shortterm consequences for the economy. Upility rates are holding reasonably well and that suggests a soft patching the economy in q4 may be less than feared if youre just looking at the new cases and death toll data. Lockdown certainly are in place around europe. We are seeing cases in the u. S. Continue to rise. Doing betterps than other parts of the world. Is that when the reasons why we intoeeing flows of money e. M. Asia in particular . Itself, first in first out has been the theme for some time, and that remains very strong. Weve seen a little bit of a pickup in cases in certain countries, but overall the situation seems to be prewellmanaged relative to the west and that has certainly helped. Clearly dollar weakness is another factor that has helped asia and pacific in specific. The dollar index breaking a little bit lower here, the euro has yet to confirm that rate. But again, thats just reinforcing the dollar downtrend and leading to more flows into emerging markets which salt massive outflows over the past few months. So weve seen that reverse somewhat. November was set to be the month with the biggest gains on record, globally speaking, for equities. Has christmas, early . That, . It does look like . Doesnt it we been waiting for some pullback in the last few months, we saw a little bit of a wobble but nothing that material. Gott does seem like weve very strong tailwinds behind equities. Vaccine hopes arising, the fed is obviously in focus after the minutes last night. Some sort of action, either lengthening the duration of its purchases or promising to cap continue yields could give another leg up for the rally. It doesnt mean we will not see volatility at some point, but november through to march is usually good for equities and thats what we are seeing at the moment. , ande seen gold you see whats happening with bitcoin, which is up to levels we havent seen since those heady days of 20172018. Give us a sense of why bitcoin is appreciating as much as it has been . Steve its interesting, the divergence. Performance in recent times has been less stellar. Crypto is always difficult for us to put evaluation on due to its short time span and the fact that its really based on a lot of trust. What we are seeing at the moment is quite a lot of speculated excesses in bitcoin. See really difficult to where its going to stop. Couldnt get up to 30,000 . Who could it get up to 30,000 . Who is to say that it couldnt . The recommendation we have for our clients as far as cryptocurrencies in general is concerned, its a bit of play money on the side. It should not be part of your portfolio at this stage, because of that volatility and difficulty of predicting where its going to go in the future. Getting back to that, how important is a fiscal package to independent stockmarkets . Steve we thought it was very important, but it doesnt seem very important in recent times. If anything, the prognosis has been getting some kind of fiscal package through. Even after the election because of the lack of a blue wave, that could be challenging. The Current Administration is tying the hands of the future administration to some degree as well. At the moment, the market seems to be willing to look through that uncertainty and pinning their hopes on a vaccine coming out, that will reduce the need for fiscal stimulus to some degree and should lead to a reinforcement of the recovery phase of the economy in 2021. We would prefer to have it than not, but at the moment, markets seem willing to look through any shortterm economic weakness to a brighter 2021. Rishaad steve, thanks for joining us. Coming up, are exclusive interview with conrad clifford, talking about deviation surrounding losses. This is bloomberg. Rishaad the Airline Industry has a long way to go toward recovery. Some see the slump persisting throughout all of next year. Us how aifford tells vaccine could make an impact. Real can be, but the panacea is to introduce a rigorous testing regime. As you said earlier, were looking at the worst here on record, 118 billion loss for airlines globally. Even if we have a vaccine, it will take 1218 months to deploy globally. We need to restart aviation as quickly as possible. What we are asking governments implement testing and restart aviation. Rishaad another is development demonstrateapp to coronavirus free status. Tell us where you are with that. Singaporeng kong and have been looking to start the bubble, which is really good news. Its a general, essential travel bubble. Were developing with the authorities and airlines in both countries and apt to assist that. Component registers the Health Requirements in each location. The second component registers the testing or the medical centers, where passengers can have testing conducted. A certification to show that your negative, and the fourth is a contact to make the progress through the airport as touchless as possible. We were developing that before covid came along, so that is a fairly straightforward development. The underlying structures of is an open source standard anybody can use, and a modular design so you can pick the modules that you want. The idea is to develop something thats cheap, effective, and is a tool the governments and airlines can use to get aviation going as quickly as possible and as safely as possible. Rishaad when we look at aviation, when do we expect a return to 2019 levels of traffic . The other part of my question is, when that does happen, will airlines be that much more efficient and arguably stronger as a consequence of the layoff theyve had and the streamlining of their operations that has been taking place during all of this . Conrad thats a really good question. To answer the first one, we are expecting that International Travel wont recover to 2019 levels until 2020 four. Its going to be a long, slow hall. Domestic travel will recover more quickly. We expected to recover by 2022 globally. Airlinesping that the will achieve cash positive by the end of next year. Will they be more efficient at the end of this process . Undoubtedly. But the real challenge, what weve got to do now is make sure that the airlines survive, so wet when we do see a restart can ensure global connectivity. Right now its about survival and government help for airlines. Then we look at asiapacific, its being dragged out of the woods in some ways because of the china domestic markets. Does this ultimately perhaps lead to Asian Airlines having more influence in the mediumterm . I think the china domestic story is a very good one. We are hoping that fairly soon next year china will open up internationally. And of course this Hong Kong Development with singapore starting a general bubble is really good news. I think china has a big role to play with such large volume. Will that mean the asia pac in general has a bigger influence on iarta . I think it will have a very important impact in terms of providing models for recovering from this pandemic. Conrad clifford there. Its time for morning calls. Sophie, essentially the easing cycle, is it over with . Sophie Bloomberg Intelligence seems to think so, unholy for the foreseeable future, looking at a potential hike but only around 2023. Rising property prices also putting a lid on easing. Current wave the of infection and south korea will derail the recovery given export growth, and we have Government Spending next year at 8. 5 , so Capital Economics predicting gdp in south korea to expand by 5 in 2021. Thats more than the be ok is expecting with 3 for their estimate. And with the tilt to cyclicals, who has been chiming in . Suisse putting their hand up on that front. Their latest Investment Outlook for 21 seeing undervalued sectors in asia, energy, financials, and travel, starting to play catch up to previrus levels. In the coming six months, may looking to outpace growth stocks. But hardware and tech exposure remain attractive. Pick, thate top country moving to overweight. India being raised to market weight on its improving outlook. And Credit Suisse forecasting stocks on aor asian multiyear earnings super cycle kicking off. Some of the factors providing support for asian stocks here. Thered sophie camerin having a look at some of the morning calls sophie kamaruddin. At the kospi in light of the vanke of korea coming out and making no change in Interest Rates. The News Conference afterwards comingby the governor, out and talking about them not considering any policy normalization at any stage. And much made of the pace of an increase in Household Debt, which he labeled as being a concern. This is a look at Chinese Markets as we head toward the lunch break. Down at the moment by about. 2 . The shanghai composite looking at a decline. Us,lunch break is upon clinging onto positivity. 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 they live shot of mumbai. A hazy start to the day. 26 degrees celsius. Nifty futures in singapore suggesting positivity at the start of the trading day. Erasing some of the losses we witnessed in the session wednesday. Nifty was down 1. 5 . The start of the trading day a little over 15 minutes away. Its find out what is happening in terms of our first word headlines. Starting off with china as it breaks its silence on joe bidens electric bait joe bidens election victory. Xi jinping sending a message of congratulations. The state news agency saying the president wants healthy and stable relations with no conflict and no confrontation. An earlier message says china respects the choice made by american voters. The u. S. Stepping pressure on russia and china. Sanctioning five companies it accuses of open to promote irans missile program. The treasury is said to be ready to announce additional measures against tehran in the coming weeks related to weapons of mass destruction and human rights abuses. President trump has parted his first national, michael flynn, who had admitted to lying about a conversation he had with the russian ambassador. Prosecution ase evidence of a broader conspiracy against to the white house. Is pelosi says the act says the pardon is an act of corruption. South koreas coronavirus exceeded 500 in the first time in eight months. In spread among citizens their 20s is worrisome. The bank of korea held rates as anticipated raised growth forecasts as it assesses the covert impact. Greatest the worlds Football Player has died at the age of 60. The stars suffered a heart attack after recovering from surgery. He capped his country to the 1986 world cup but struggled to cope with fame and battled addiction for years. Buenosvernment in one u aires has declared three days of national mourning. Chinese fintech giants are plans. Ing to erasing lets get to equity markets reporter julia. What implications are the changing fintech rules on players such as j. D. Digits orly fx . Implications are pretty farreaching. The breakneck growth they have been able to have so far, which is the rather unencumbered regulations, that is going to come to an end. That is the signal the regulators are sending. J. D. Digits had filed for an ipo in shanghai in september. It is weighing changes to the listing plans in light of the new draft rules. It is discussing options with shareholders. We will see if it is guides to go public in the first half of next year. The other company did manage to go public before these rules were published, but it has suffered in terms of its stock price. We have seen some quite wild swings. Mights are the stock suffer a little more if the crackdown continues. Rishaad absolutely. That is a look at lou fx. They went public before the world was cleared. Why are regulators clamping down now and of course, lets not forget the whole ant financial story. Obviously the pinnacle of it or the most obvious example of the clamp down. It sent a strong signal to the industry. Thatlators feel that marked into the technology china, each marked into financial services, they have been able to grow too fast. They have become really big. They may pose risks the financial system. They are trying to ensure Financial Stability and send a message that they cannot keep aswing as they are and act they are but not be regulated like more typical Financial Institutions like banks. Be regulations need to clamped down and that is why they have to boost capital. That is why they are seeing caps on their lending rates. All of this is a sign they can no longer more thin and less tech. More fin and less tech. Goingd coming up, we are to be speaking to the chief executive of a leading energy and verb and Environment Solutions provider in india. He will talk about his outlook on a company ravaged by the coronavirus. That is next. This is bloomberg. Rishaad it is time for india focus. Dued quarter gdp numbers friday. We went to zoom in on the manufacturing side of things. The Company Offers various solutions in the areas of heating, cooling and water and waste management. Us. K you for joining you had the results early this month. You had talked about the economic picture being cloudy. That is probably the understatement of the year. Do you have any more clarity . A very happy thanksgiving to you and your viewers. November was better than october, which was better than september. With each passing month, we seem be trending towards when i on the future would suggest to ember is a difference. Would suggest september is a difference. Most of it ist back to where it was a year ago. Rishaad what about your customers . Do you get a sense of more confidence emanating from them at the moment or even a sense that things are very slowly coming back to normality . Weeks last few [indiscernible] i am back on the road eating customers on the road meeting customers. In general, it feels like there is a sense of optimism. [indiscernible] cement,it be steel, textiles, other manufacturing industries. Most of them have very good profitability in september and october because costs were down. Demand picked up. Profits were very good. Almost all of our customers are thinking about Capital Projects again. Rishaad that brings me to the other point. You mentioned the industry groups. Are there any particular ones you are seeing rebounding faster than others. Than others . Pharma, chemicals, food never really slowed down. After that in the last two months, we have had cement starting to pick up. Steel starting to pick up. What i can say is the projects where the customers are starting to invest in first are those that have relatively shorter paybacks. Thoseificant portion of relate to sustainability. We can see the world starting to converge around a quick payback and sustainability is important even in this environment. The most severe downturn in indian history, people were not bothered about Environmental Concerns. Do you see in a post pandemic world that there is an environmental imperative . Absolutely. There is no difference in that sense than in the rest of the world. India was practically shut down for two months. As you can see from the numbers. The recovery overall has been vshaped. The Manufacturing Index in the last month was one of the highest we have seen in the last few years. Expectation we will grow this quarter. We will see what the numbers show. Take the covidt uncertainty out of the agenda, which is the longterm agenda energymanaging availability with sustainability, making sure [indiscernible] get stronger and stronger. Industries are trying to figure out, how can they continue to while taking care of the environment. The sustainability agenda is very real for companies. The reason why i ask that question is you do have one of your products being antipollution equipment used in coalfired power stations. That is running quite a lot beyond a lot behind target. What are the specific challenges you are facing . Those particular ones are the latest [indiscernible] large power plants to significantly reduce pollution. These projects are now going through the final approval cycle because there has been a cost change, which has happened on this project. The cost change is related to some of the larger geopolitical issues happening in india with issues relating to our neighbors were some of the boats come in through china. These projects are being evaluated. Customers are looking to find ways to push these projects out ever so slightly. [indiscernible] these are coming from the supreme court. These projects will come sooner or later. Absolutely. You look at coal, a lot of countries are moving away from coal. Of us your views on that and whether that provides you with a Business Opportunity to be pushing your products in the few places where that is not the case. Greaterave to make a push overseas in your view . Push have to make a great to overseas but we have to make a great push overseas not because [indiscernible] expecthing, we do not even in india, [indiscernible] by any means. The portfolio is more targeted toward, [indiscernible] how do you improve efficiency, reduce environmental norms, improve the water that is generated by many of these plants . Because coal is such a big part of india, we cannot wish coal to go away tomorrow. The expectation that whatever coal we use continues to be cleaner, continues to be more amenable to the environment and meanwhile, [indiscernible] bio waste, all applications [indiscernible] rishaad and also, the king at going on, are you going looking at what is going on, are you going to be growing the business from an organic standpoint or do you see acquisitions transformative . What are you looking at in terms of growth . We are looking at growth and we are looking at all options. Of devaluation not just now but always. [indiscernible] thermax, we will have to figure out what portions of this new hightech value change can come to thermax. And whose partnerships can, in the form of m a and in terms of. Chnology licensing there is a host of partnerships we are looking at. The one thing we will look to avoid is do something really big, which will put the company in a very different form of or what we plan for as a company. We look for Creative Partnerships that are small. Areis very part of what we is very much a part of what we are looking at. Rishaad if youre going to take advantage of a new administration in the u. S. , she is pushing toward a cleaner energy and more Environmental Concerns being addressed. That is an opportunity of course. Market, u. S. If anything is one of the fastestgrowing markets. We have a range of Specialty Chemicals where we provide advanced for a variety of applications. Absorption chillers, which are can providet shilling solutions. Chillingde solutions. We are ever more excited at the potential for the future. Rishaad thank you very much. Joining us exclusively. Lets get to the indian open. There we go. It is green across the board, helping the ms ci asiapacific index to extend some of its gains. We do see some strength coming in from earlier losses generally speaking as the region does go. Nifty up by 4 10 of 1 . The syntax index also gaining ground. We have the gdp numbers out on friday. Up next, bank of america staff worry about compensation as management considers freezing the bonus pool at the last years levels. We have the details coming up. This is bloomberg. Rishaad the chief executive of a company says he is seeing a strong recovery in the second half. The Client Software company reporting earnings that came ahead of Third Quarter estimates and its 44 . We looked into next year. Still see the economy has a lot of choppiness. The first half probably a bit more conservative and recovery in the second half. We are leaning hard into our subscription of transformation. You move to a subscription model, you get less up front but the lifetime value for the economy for the customer is better. Overall, we are excited. It is faster to the future. We are taking this covid pandemic crisis and we are saying we are going to go faster to drive the transformation because we see that is overall where the market is going. We are going to transform our business to be a unique provider of cloud services. Taylor you talk about that smile. When can we expect the uptrend of the smile . We do see it as a threeyear cycle. As we are pricing to go into the smile more aggressively, the second and third gears look better when youre coming on the others and the businesses are accelerating. The margin is improved. It really is a threeyear picture with next year. A little choppy economy. We are taking the opportunity to go faster in the smile. Taylor with that margin outlook, how much of that in terms of the mix comes from investments in marketing or perhaps hiring . We have continued to invest this year. We are planning to continue to do so next year as we build our team. Moreodel does have Customer Success requirements. You have a little order. You get the product and then you have to grow it over time. You are much more in partnership with the customer to drive their success and that does drive up the cost. Overall, it is a bit investment heavy on the front end but the lifetime value as we are seeing from the customers who are coming on our offerings and with 44 growth rate building on very strong growth all year long, we are optimistic where our customers and where the prophet is going. Analysts were noting that the guidance is conservative. I do wonder, why the conservative guidance . Everybody looks and says, when they say something, we are confident in our guidance. We are a better predictor of the future where the markets are going. Single digits range, they were expecting a little higher. As we look at it, everybody is a little too euphoric on the economic outlooks. We still believe we have a long way to go. All of that taken together, we are comfortable with the guidance we have given. We have a great track record of being able to deliver against what we say. Vmware ceo speaking to taylor riggs. Wall street helps hefty may diminish. A year end bonus pool aligned with last years level. It is fair to say many traders are already counting on big bonuses given the trading bonanza Financial Companies have had this year. Su absolutely. There is going to be outrage among many of the traders if they do not get what they are expecting. As we get toward the end of the year, there is a big focus across wall street on these bonuses we are hearing bank of america leaders are planning the year end bonuses to be part of a l that will be comfortably that will comfortably freeze the bonus that last years level. That is despite a 20 jump in revenue. Pandemic related circumstances had trading on fire, creating had trading on fire. This discussion among bank of america executives is according to people who have been briefed bank ofalks but who say america executives have declined to discuss this matter on the record. What we do know is the leadership appears to be weighing the rewards of paying out their top traders in a way. Hat will keep them there is already concern that if they do keep the bonuses at last years levels, there will be many unhappy traders as a result. For most of the day, this is the most read story on bloomberg. You have a lot of traders looking at this closely and wondering probably whether there will follow suit. absolutely. What we do know is major banks pay close attention to what their rivals are doing. This is being viewed as possibly a bad omen for what may be ahead. Weis expected the tensions hear are occurring within bank of america are likely to be echoed across many of the banks. Interestingly, there is a lot to contend with right now. There are very big industrywide problems. There are the losses of loans. The possibility the trading windfall will not last and there are the optics of handing out lots of cash at the end of the year to well paid staff at a time when there are a lot of academic misery elsewhere and there have been large layoffs particularly on wall street. Very Big Questions here. We know bank of america executives still have time to lobby to pay more to the traders. This is an idea we are hearing is being floated about. It is likely there will be and they will be much more modest than is being expected. Keenan joining us from new york. Lets get to the markets. We see positivity coming through. Benchmark indices off the lows of the day. China going off its encz break. Having a torrid time of it. It is firmly in the red. Kospi has been positive. It has given up the gains. Seeing that as we did some concerns raised by the bank of korea governor about Household Debt and what has been going on with the yuan. Hang seng has been flirting all day with again line. Hshares helping to lift things. Tech as well. Mse i hong kong index taking a pure play view at hong kong. Up by 6 10 of 1 . Daybreak middle east is coming your way next. Taylor i am taylor riggs, in for emily chang. This is bloomberg technology. Coming up in the next salesforce hour, considers buying slack, a deal that could be announced as soon as next week. Slack shares surged on the news. We have the latest. Plus, covid company via cloud company, vmware. It beats estimates. We do it with the vmware ceo. And as millions of americans co