Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240711

Astrazeneca is to resume vaccine trials amid questions about initial claims and the level protection with Global Buyers numbers on the up. But thanksgiving travelers defy warnings to stay at home. New data shows china is likely to miss targets this year. Imports were slow last month after septembers high, leaving the full year targets out of reach. We are seeing australian stocks starting off on the back after snapping three days of gains yesterday, just falling short of being able to erase those 2020 losses. But we are still on track for the best monthly gain on record, about 13 on november. Further positive news for the country when it comes to 28 consecutive days of no coronavirus cases from victoria. Looking at u. S. Futures right now, initial jab, if you will, cash markets were shot overnight. Not a lot of price action. Down about six points on your s p futures. Dollaryen, 104. 24. Limits to the upside. New york crude below 45. We will talk about opecplus later on. The outlook for the cuts and whether they can push those through moving forward. In the meantime, the vaccine. You have astrazeneca sent to run another global trial of its covid19 vaccine, coming amid questions about its program and the level protection. You look at initial tests claiming varying levels of efficacy, sometime as high as 90 , depending on the dose the purchaser pence were given. That is the key story. Ros krasny is with us. She has the story. Take us through the nuance here. Efficacy means many things to many people. What exactly are we talking about in this case . Ros really there is a debate about how effective the astrazeneca vaccine has been, and whether some of their trial isults have been not quite would not say honest, but some of the trials may have been done on younger people, and we do not yet know how older people who are at more risk respond to the vaccine. Theres some question about a very interesting half dose followed by a full dose regime, and how that came to be. Was it done in error, was it some brilliant move by scientists . A a lot of questions. You have seen a bit of a slip in astrazenecas stock. Some people see this whole efficacy debate as a Reputational Risk of the drugmaker, at a time when the stakes could not be higher. Basically they have come clean and said we will do another trial, and well really run through these numbers again. Its something that can certainly delay approval of the vaccine, certainly in the u. S. , eu,ough in the u. K. And they may be on a different timeframe. It seems like the company is fully committed to, if they have not been fully transparent at that point, to reversing that. Thee talked a lot about Pfizer Vaccine in the u. S. And the Moderna Vaccine. The astrazeneca vaccine is more durable, cheaper, and could be made all around the world, without the need to have very cold storage and things like that. That is why it is so important. Will does that mean we have to wait until the latest trial is completed and that data becomes available before approval is given . Given were also seeing the u. S. Becoming close to approving other vaccines, including the pfizer option. Ros i suspect that the u. S. Food and Drug Administration will push ahead on both the pfizer jab and the Moderna Vaccine over the next few weeks. A very important meeting on december 10. The Advisory Committee meeting on vaccines. There seems to be high hopes within the u. S. Government from operation warp speed, for example, and from the white house, that one or both of those vaccines will soon be approved and really on trucks or in planes, whatever, to get to people who need to be vaccinated urgently. I would tend to think that this would be a setback for astrazeneca in the u. S. , at least for the time being, because chances are the fda will want to see some more studies conducted in the u. S. Before they really give that the goahead. So, certainly the pole position if this is a race, certainly the pole position for pfizer, biontech and moderna. Sooner or later you would think the fda will turn around and consider ashes in a cup once they have consider astrazeneca once they have additional trial information. Haidi ros, unique abouthat is this is we are rooting for every single car out there. We ask this question regularly, given of course the ups and downs, and the latest news on the vaccine story. Talk to us about timetables. In terms of, if im a Frontline Health care worker, when can i expect that to reach my doorstep . The other extreme to that, if im in a poor emergingmarket, when does that happen to me . Ros if you are in a poor emergingmarket, a middle income or poorer country, you really have to look at the timetable for approval of the astrazeneca vaccine. That will be the one that probably gets to most of those countries, and its likely to be produced in several countries around the world. In the u. S. , we heard last weekend from the head of operation warp speed in the u. S. That, really, he thinks vaccines could be going out as soon as december 11 or december 12. Having heard that really made me think that he must have a lot of confidence that the fda Advisory Committee will immediately, or almost immediately ok one or more of these vaccines at the meeting or shortly thereafter. And we actually had President Trump speaking just a few minutes ago, and he said next week or the week after, which i think basically means the same timetable as operation warp speed had indicated for its approval. But once that approval is given, the rollout could be quite fast. And Frontline Health care workers, the vulnerable populations, those will be the people who see the first rollout of these vaccines. Of course it is a very, very complicated effort, but that has been the focus of the u. S. Operation forked the past six or more months. Once the vaccine is ready, to really roll it out very, very quickly. Haidi ros krasny there in washington. You can read more about the vaccine race in todays addition of daybreak. Bloombergs subscribers can get that on your terminal, and it is also right on your mobile in the bloomberg anywhere app. Lets get you a check of the first word headlines. Willdent trump says he give up power if the Electoral College votes for joe biden next month. Picking at the white house he said he would certainly go, though conceding defeat would be a hard thing to do. He also maintained his claims of irregularities in the election. The Administration Says the result was rigged in bidens favor in a widespread Corruption Campaign. New data on the phase one trade deal shows that china is likely to miss targets this year. Imports of u. S. Products slowed last month after hitting a high in september, leaving therefore your goal out of reach. China has bought just over 75 billion of prescribed goods, about 44 of the 2020 target. It means a further 95 billion needs to be purchased by december 31. State media says china is likely to exit from stimulus measures soon as the economy improves, but any Interest Rate hikes remain off the table. The securities journal says tight money and tight credit are inevitable, but it sees no prospect of rate hikes for some time. The paper fails to cite any officials, but observers say the frontpage story can be seen as a sign of policy direction. Reports from dublin said the European Commission has told Member States that a full deal with the u. K. Is unlikely this year. Brussels say some progress has been made on bridging agreements and hearing houses. The eu has warned that without further compromised by london, brexit negotiations may be terminated by this weekend. And those are your first word headlines this hour. David a lot more coming up here on the show. We are talking the Global Equity rally on track. Blue circle, best month on record. The momentum is actually sustainable moving forward. Plus, oil markets and cracks are appearing in the opecplus, just days before a key policy meeting. We will discuss the indication of this massive rally we have seen the last few weeks. All of that is coming up. This is bloomberg. S is bloomberg. Lets discuss prospects of a vaccine reflation with head of asset management, on the line from melbourne. Great to have you with us. You have doubts over the vaccine reflation trade. It will continue until we have that Global Equities hit a pause in the overnight session. We have been seeing stronger and stronger indication of the rotation trade as well. What do you expect to see next year . Is it a vaccine reflation trade, or is it we start to see some of the followthrough with a fed and stimulus and fiscal pulse reflation trade . George good morning. The reality of the reflation trade is the success of the vaccine indicates what is required of the fiscal and the Balance Sheet expansion to continue. We all know it is whatever it takes globally, Balance Sheet expansion, and Central Banks independent around the world urging governments all year to expand fiscal stimulus. Having said all that, the automatic stabilizer so to speak is traditional policy mechanisms in qe. So the success of the vaccine indicates what is required from the former two. That is what we are trying to price in on that rotation and across Asset Classes as well. Like you sounds basically are expecting more of the same going into 2020. What are your key risks, then . George plenty of risks. And risks remain, valuations. The preconditions for that to be successful is obviously the stimulus is whatever it takes. Expansion of violence sheets of Balance Sheets. In march of this year, the new cycle began, a severe reset. We spent years going into 2019 with a mature state of the cycle. At the beginning of this cycle, expecting more of the same, for the rotation to continue. But the thing here to remember, the rate of change Going Forward from the stimulus be slowing down. So the gains you have seen in calendar any secondhalf of 2020 continue the same rate, but its still a risk on somatic. The policy risk is the key here, how they respond to it, and the success of the vaccine. David do you think that is a late2021 story . We have seen talk of future tightening disrupt markets in the past. Do you think, say, after june of next year, would that be too early to talk about that perception of rising rates disrupting this rally we are seeing across risk assets . George that is the key. To oversimplify, earning year bond yield a 10year about 125 over the next three months is a concern. And by the second half of next year, depending on the momentum of how everyone is coming back online, remember, supply chains have not been disrupted as much to the downside as people say. So there is going to be good numbers coming out throughout calendar 2021. But it comes down to what you just said, whats a reasonable alternative here. About 125 u. S. 10 year going into 2021 is a concern for valuations you are buying for the end of 2021 or 2022. We are always trying to price future earnings, valuations matter, and that is a key indicator on the reflation trade. David why such an extremely low position . You are just under 1 . George very quickly, i have 21 years of data. Theres a lot of short positions. And looking at how the managers are working across the global, we tested looking at the data in 2012 to 2016. Those shorts collapsed from 10 , decades for 1. 5 before hands from 2012 to 2016. Of having key driver to look at the concerned when he started expanding Balance Sheets and the risks involved with that. Shortssaid that, the built up going into the pandemic. This liquidity is making it very difficult to have sustained short positions for long periods of time. That is the backdrop. Having said that, we are looking for protection for all portal he was going into 2021 to try and lock in the excess returns on the long side. David viewers, take note of that. George, have a great rest of your friday. Lets continue the conversation on the vaccine. Our guests said news on the vaccine said there is light at the end of the tunnel but plenty of hurdles remain. He spoke exclusively to bloomberg on the challenges facing the banking industry. Have a look. Guest of course shareholders do wish to have a dividend. This is normal. They allocate capital to the bank. We use the capital to put in the bank. And they want to be rewarded if it is possible. The recommendation made by the ecb has been broadly well understood at springtime. There was a high level of uncertainty. Nobody knew exactly what was going to happen. As a bigif it came negative surprise, it was part of the negative news out of the covid crisis. Its notlarge extent, positive, they are not happy. But most of them have understood. You see what i mean. The question is a decision which is going to be made by the ecb, the recommendation that we will get in december. I think today, we are still in difficult times. Lets be clear, there is a second wave of contagion everywhere in europe and the world. There are difficulties. The lockdown is still there. And the reopening of the business is moving forward, but there are still many difficulties. So, i think theres still a level of difficulties. But i think there is more certainty. We understand better what is going to happen. We understand better the risk ahead. We understand better the challenges we have, and the dialogue with the supervisor is of all these questions. So i hope that this understanding will help the decisionmaking by the ecb about the recommendations they will give in december. Do markets left do markets have to be less exuberant, given we are not exactly sure when a good chunk of the population will be vaccinated . Jean yes. Well, you know, once more on the vaccine, i think there is light at the end of the tunnel. Im very confident scientists are developing vaccines, which are going to help a lot of people to go through this virus crisis. So, there will be one. Now, we know there are many questions about protection, about distribution, about the impact, and we should not expect a quick, immediate impact. It will take some time. But at least there is a light. And thats what is very important. I think this is well understood by the markets. Haidi that was bnp chairman Jean Lemierre speaking exclusively to bloomberg. Coming up next, falling short. Why china is now all but certain not to meet its purchase commitments under the phase one trade deal. This is bloomberg. This is bloomberg. With chinas purchases of u. S. Goods under the phase one trade deal slowed to last month, leaving them well short of the stated goal. Stephen engle joins us now from hong kong. What does the data show us . Stephen of course didnt like this can have fits and starts, depending on demand. But after septembers big surge of china buying u. S. Goods, were seeing, according to bloomberg data and customs data from china, that the number dropped off considerably. Under the phase one trade deal, china pledged to by about 172 billion worth of goods from the u. S. For the full calendar year. Right . So far, by the end of october they had purchased just 75. 5 billion of those manufactured goods and Agricultural Products like soybeans, as well as Energy Products. So that means for november and december, they will need to surpass that amount already year to date. They would have to do 95 billion more of purchases by the end of december to meet their stated and signed goal under phase one trade deal. October,rop we saw in nearly a 60 drop in crude Oil Purchases from the u. S. By china. So, energy really dropped off. In fact, purchases of Energy Products are only about 25 of their stated target for the full year under the trade deal. Energy is a sore spot. However, if you look on the agricultural side, we are seeing soybean shipments, a bit of an anomaly, up more than 190 from september. Big, bulk purchases there. Twoan, buying one or aircraft can make a difference. Also integrated circuits were up 20 . But there is a lot of uncertainty on the trade front. Obviously with a new administration very likely coming in in a couple months time. David he has been busy traveling. What are the chinese trying to do . Stephen a lot of people are trying to figure out where the geopolitics are going to play in the biden demonstration. Trump is still making plays out here. The National Security advisor was out here more recently visiting allies like japan as well as vietnam and other places. But then the foreign minister of china, taking this opportunity to go to japan and to go to south korea. He just wrapped up a meeting with his counterpart in seoul where they signed a 10 point agreement on pandemic sharing information and other issues, as well as may be creating some kind of travel bubble, similar agreements, or a common understandings with japan. However, there are longstanding legacy issues with japan. Stephen engle there. Lets get you the latest business flash headlines. Foxconn is said to be shifting production of ipads from china to vietnam to alleviate any trade threats under the next u. S. Administration. Foxconn is Building Assembly lines at a plant in northern vietnam, which will come online in the first half of next year. Vietnam, india and mexico have all benefited from electronic suppliers moving and shifting out of the chinese mainland. Disney is to cut another 4000 jobs. Theme parks continue to hemorrhage money. Disney parks in california remain shut overlapped on measures that have lost more than 1 billion loss quarter. Glove of malaysias top the company has been ordered to close 28 of its factories after more than 1000 covid19 cases were found at its facilities near kuala lumpur. That is more than half of the daily numbers for the entire country. Most of the cases have been found in dormitories that house workers. Coming up, we are talking oil market, where we go. That is coming up next. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Latestwe do have the Inflation Numbers out of japan with tokyo cpi coming through. The exclusion, the headline number is a contraction of 0. 7 , worse than what was expected of six point 0. 6 , a deceleration from the previous month. Excluding fresh food and ever volatile energy costs, we see a contraction of 0. 2 , unchanged from the previous month and as expected. We are waiting for the year on year top headline numbers to come through. Consumer prices falling 0. 7 year on year. It has been seven years since the bs j said it would keep easing until they reach the 2 target. We are further away than the target now. Will help. Il story futures are doing this, 30 minutes until the open, u. S. Futures as you see on your screen, something exciting, Global Equities on track for four weeks of gains. The oil market has been on a tear although when you look at what is happening after hitting eightmonth highs, continuing amid rising tensions within the opec and opecplus group and allies days before a key policy meeting when they are set to discuss terms of what they will do about those cuts. Lets bring in our Energy Reporter to talk us through where we go from here. Downg a little steam, 1. 7 , and what is behind this retreat lower . Good morning. What we have seen this week is detentions emerge within the opec producer block. Iraq, energy figures have questioned whether is now is the right time to ask members to withhold increasing supply. The iraq economy has been on its knees as a result of the crash in oil prices. As much aso pump out possible. They are not the only ones. Libya is emerging from a civil war, pumping out as much oil as they can. There is not a tremendous amount of enthusiasm across the opec block to go ahead with the plan to delay a plan to lift output in january and that focused minds on this meeting at the end of, the start of next week. That is why the expected barrels of 2 million per day into the market from january. Haidi in light of these dynamics, what are the expectations for the opec meeting . James i think the expectation is that the saudis and russia will support a delay of 36 months over having the extra supply in the market. I think that is the expectation. That has played a part in oils strong rally. The vaccine news was another driver. But i think that is probably in the price. There is a risk of disappointment from this meeting if the likes of iraq, libya, the other smaller members managed to get some traction for their arguments that they should go ahead with the extra output. I think the risk is skewed to the downside at this point given how far we have come in the last. Onth roughly around 26 up in u. S. Crude futures. The expectations are that we will get this announcement of a postponement to the planned output hike. David i guess part of the story , we talked about this earlier, Standard Chartered put out a note as it pertains to what you talked about in terms of, you have the rally, you alluded to this, you have the uae and iraq but the charts view is that they will extend the output cuts. Beyond this rally, if you take the rally away, what does the fundamental picture look like in terms ofs a lot supply and demand for oil . James it is hard to say. The market is better balanced now than it was at the start of the pandemic. Opec has taken a lot of supply off the market. The u. S. Has been raining back to a certain extent and i think if a vaccine gets rolled out as people expect, we will see demand come back and you could probably make the case for oil to the plus 50 per barrel level. I think the risk of a setback is still high. It is still uncertain about the timing of a vaccine. We had news from astrazeneca having to do another test. There is uncertainty around that so i think the market is expecting this delay to, and if it doesnt, there could be to some some disappointment. James, our Energy Reporter. The first word headlines, astrazeneca has launched new vaccine trials amid questions about initial claims of a manufacturing error. Jab is 70 heir effective. None of the information was included in the original statement. The number of air passengers in the u. S. At thanksgiving are at the highest since covid19 shutdowns eight months ago despite people being urged to avoid trouble. Covid numbers are rising, germany recording a million total cases for the first time. London may avoid the toughest virus restrictions while francis has intensive care numbers continue to fall. A report from soul says north koreas Border Closure is a bigger blow to the economy than sanctions. The Korean International trade Association Says dealings with china fell 73 . Pyongyang continues to insist it has no covid19 cases but state media alluded to intense economic damage. The state at the center of australias worst outbreak has gone 28 days with no new cases reported. One of the worlds longest and most strict stayathome orders let victoria control Community Transit should transmission. The premier says the virus remains infectious and people should remain on alert. Those are your first word headlines. Up, we will have a look at the state of plague. Talking the state of play. Talking diversity in the gaming industry. That is in this weeks equality segment coming up next. We are going online. This is bloomberg. David welcome back to the show. If you are joining us out of the region, good morning. Happy thanksgiving. If you are thinking of having another glass, why not . Lets talk videogame diversity in the industry. That is our topic. Despite the near even splits between male and female players, 24 percent of Game Developers are women and 2 identify as black. The problem is not only behindthescenes. The games into themselves. Joining us to talk about this is tonya, founder of i need diverse games, a nonprofit that supports visibility and access for underrepresented people in the industry. Good morning. Pleasure to have you on the show. Lay out the issue for us. Hello from chicago. It is early evening. The issue is complicated because it starts with access or lack of access for a lot of people to get in the industry and stay in the industry. There is also the player segment that doesnt seem to understand that women like to play video games, and we do this because we like it, not just to get a dude s attention or because our kids are into it or because a guy talked us into doing it. We like games and we also make the games they play and the last part is, the very unfortunately vocal segment online that doesnt want anything but more cod and shoot everything and kill everything games and can easily put that away and not think about a game until they booted up again, versus games where i dont get to see myself or people like my friends. It is an allencompassing thing and there is issues across making the games, who is on stage at events talking about the games, who is sitting at a console or a computer. Is a this obviously multifaceted and multiangle problem. I imagine there is no quick solution. If you had to start somewhere, what is the lowest hanging fruit . Is it in the Corner Office of the big Gaming Companies . Is it your whole team of developers that come up with these things . You look at the games themselves, you alluded to this, there is a lack of diversity. Where do you start . Tanya the lowest hanging fruit would probably be the c level and the people signing off and going yes, no, we can and cant have this character. There is a group of Diverse People that make the games but they dont have the final say on something. Then no matter what they put together, it is not going to the final version of agame that gamers had in their hands. The other low hanging fruit is getting gamers to understand that putting a woman, a person disabled a queer or character is not some agenda, it is making games reflect the world we live in, because everyone games. There are so many great people doing work sides what i do, i am one person of many, but people like able gamers and poc in play and other folks are doing this work and getting gamers to realize games are more than entertainment. They are a genre, there is so much to them and everybody deserves to see them reflected in the games they play. Haidi is it also still a problem with gaming culture . I remember gamer gate. A lot of that was blamed on the fringe of the community, but have things really improved since 2014 . We had the Metoo Movement since then. Is the community of gamers, the consumers, more diverse . Tanya absolutely. Because consumers have always been diverse. Know where tot look for them. If you are not in the industry you may not know there is a Developer Satisfaction survey that goes out every year or they put out a report every year and it is more and more people of color, more women that are playing and it is Getting Better but it is moving slowly. We are finally seeing companies go, if you dont like our game, you dont have to play it. I was happy to see bungee tell someone like, in response to them announcing their internal black folks that work at the group. They didnt have to announce it but they felt it was important. People that were mad about it and just want to hear about the game and fixes for the game, they were like, if you dont want to hear this then just go follow the game account, dont follow the overall bungee account. It is getting there, but as we have seen, just over the last week two friends of mine have been harassed for just saying we should get a seat at the table, specifically black women being involved in adding review units for the next consoles. People harassed them nonstop over the last two weeks, just because they said they want a seat at the table, misconstruing what they said. On the one hand it is Getting Better, more people are speaking up. On the other, that sentiment of gaming is just for 1835yearold white dudes persists with a lot of people. Haidi maybe that is where you see the louder, the loudest, most abrasive voices. I think that went to my initial point, you can make these boardroom decisions as to what kind of game would sell, but on the other hand, how much does there need to be more accountability and change within the culture of the Gaming Community itself so these kinds of instances of harassment arent just something that becomes tolerated . Tanya what we need to do and what Game Companies should do is, if you harass people on our platform, if you are on overwatch, destiny, your account is mute. If you are on xbox, that is tied to your microsoft account. You lose everything. They need to have penalties. They need to start actually banning people from coming back into games, coming back into communities, and showing that there is a real penalty for this harassment instead of just, well, it is the vocal minority. I said that myself but i dont own a game company. I have no power to ban these people from playing games. I can block them on twitter and other things but the Companies Need to show us that for all the black lives matter statements they made in june, all the things they did, where is the backup to that . Where are the people that are actually saying you are a racist, you are terrible and will harass people who are disabled or harass people who are in who are asking for representation, you dont get to play our games. That is from the aaa space, indie Game Developers, anyone who has put a product out, you get to say who plays your product. You can take the game away from them, especially in the era of Digital Gaming because we dont really own anything anymore. Game Companies Need to put their foot down and say we wont tolerate racism, hatred, bigotry, etc. Have they said otherwise . That is what i want to get to. The bigger question for me is, when you look at what is happening, is there actually active pushback or is this simply, many of these very important issues, just a very slow moving process . It is difficult to turn around this massive ship. Tanya it is definitely slow moving but we are finally seeing Bigger Companies pushback. Before, i think it was intel, they actually, they were like, oh, they fell for what gamer gate was pushing and they realized, this is not what this is actually about and they turned around and gave a lot of groups money and did a lot of things to try to fix the faux pas but it is moving. That started in 2014. A lot of those people have moved on to other places. Politics, for instance. But there are more and more people that are being very blatant in, we dont tolerate racism, homophobia, but it needs to be a blanket thing. Erase itture needs to and start over, or for there to be an agreement among Game Companies especially bigger ones that have this much power, to go , you dont get to play with our product if this is the type of person you want to be, because gaming literally is for everyone. Microsoft has an initiative called gaming is for everyone. Why cant we live up to that . There is a difference between trash talking and harassment. People go, you just dont like trash talk or whatever. It is moving at such a glacial pace. I feel like we will never get past this in the next 20 years or the next 15 years. So why is this still an issue . Have read one report that says over 10 of people, of gamers have said they have had suicidal thoughts because of the harassment they receive while playing a game. That seems just horrendous and completely unacceptable to me. Some people say they tried to Contact Police and were rushed off. Is this something that needs to be tackled outside of the gaming arena . Because if you are getting Death Threats or some of these serious criminal threats made against you, does that need to be taken into the real world . Tanya i think so. A lot of these things happen because, when you are on a game, someone may be a callsign and you have no way of knowing who they are. I have been harassed as well. The police dont know what to do. They dont understand the digital realm. They brush it off, and they go, just ignore and block them. They tell people get offline, which in this era, lots of us cant simply go offline. A lot of what we do is tied to the internet, tied to gaming and if i go offline, i dont continue to do the work i do. It is all digital, it is all online, it is all virtual. So the police need to understand that if someone goes to the trouble of finding me, or even in a game, and says they are going to kill me or doxx me, we have no way of knowing whether that is just someone going way they shownds, or if up at someones house. We have seen people do that. Depass, wea appreciate your time. We have more to come on daybreak asia. This is bloomberg. Over 600ave arranged kilometers. Doeven have some that can 1000 kilometers. The difficult part is scaling up production and achieving extremely high reliability. That means a big factory. There is a lot of talented designers and engineers in europe, of course, and i think for a lot of the best people, they really want to work someone somewhere where they do original design work. It also helps us say, we need a car that people can afford, that fits their lifestyle. At the batteryk conference speaking about his ambitions to expand tesla production. How long until electric vehicles take over the road . Ed ludlow breaks down the hurdles in this weeks edition of bloomberg green. Batteries need to get cheaper before electric vehicles can become more mainstream. The battery pack accounts for ofwhere between 25 and 40 electric vehicle costs. Prices have come down by 90 and still, we are a ways from hitting a magic number of batteries. Whereer kilowatt hour is they could achieve price parity with a gasoline car. The average right now, 156 per kilowatt hour. Batteries similar to that in your laptop, just bigger. They are expensive because what goes in them, energy dense metals. We are not just talking lithium, but cobalt and lithium. Of thean account for 45 cost of the batteries, produced by several companies. The cells are installed in modules throughout the battery pack to safely and efficiently manage the discharge of electricity. Inside the cell, lithium ions. Huffle back and forth the casing around the ions keeping them tucked in his what is made of the energy dense metals. Cobalt has been preferred because it stops cells overheating, but it is expensive. The one minute way to make batteries cheaper is to switch from cobalt and nickel, which is cheaper and holds more energy. Nickel factories require more safety adjustments. Musk unveiled new cell kennel chemistries that remove cobalt and nickel. Tesla has plans to use silicon, one of the most abundant elements, in its factory cells. There are concerns about nickel being in short supply. Contracts for the metal rose 30 from january to october. The higher prices could spur investment to find new sources of supply. How long do we have to wait before battery costs come to a level where evs will have price parity with Combustion Engine cars . We forecast there are only a few years away and batteries will fall below the 100 per kilowatt hour by 2024. Newer designs and better manufacturing practices, as well. For more on that story, dont miss this weeks edition of bloomberg green, where we bring the news and data to understand Climate Change in full. Catch it on bloomberg tv and bloomberg quicktake. That takes us into our headlines. Producekes steps to charges at a facilitate near shanghai. That is according to a report. Make socalled thirdgeneration superchargers for the domestic chinese market, with production starting in the Third Quarter of next year. Tesla is allocating 200 staff to the project with a team churning year. ,000 per shanghai auto is planning a 1 billion fund to elect invest in electric cars. Another company will make up the difference. It plans to use the fund to help development of its own electric vehicle brand. A company is launching an International Hunt for a new cfo after its designated candidate decided to quit. The company says the official will pursue other opportunities. The current cfo will continue until at least june while recruitment continues. We have the japan and korea and open coming up. Lots more ahead. 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. David welcome to daybreak asia. I am david ingles. Haidi asias major markets have just open for trade. A rallyis the word as loses steam. Stocks phase four weeks of gains. The kospi has closed lower only three times this month. Bitcoin tumbles after rallying to a record. It surged over the last nine months, putting it among the best performing assets during the pandemic. Resume vaccineto trials amid questions about initial claims. Global virus numbers rise. Thanksgiving travelers defy warnings to stay home. Here we go. Your cash markets are just coming online and of course, the cash treasury markets also in focus. The nikkei 225 come as you can see, not a lot happening in the opening minutes. Keep in mind, we had the highest level since april 1991 on this index. If you are getting excited and wondering whether the peak is peak of quite mere, the the nikkei 225 was four days after christmas in 1989. 38,900 so we are a bit away from that. In korea, that is a market that has been hot, coming online. Have a look at what is happening there. Only three times this month and we are just about wrapping up the month of november. Weakness coming through the opening minutes. Outar korea is on the way so weakness coming through in the south korean currency. At a we are looking weaker dollar and some positive covid19 news flow when it comes to the vaccine. It has been supportive for emerging market asian currencies. The revival in risk we are seeing acrosstheboard fueling demand for yield. We are now approaching key psychological levels for a number of currencies. I want to bring in the senior emerging market strategist. We continue to see the sustained weakness in the u. S. Dollar. How much further upside do you see in these asian ems . I know you have been taking a look at the bart in particular. Good morning. There is certainly more upside in the mediumterm and we are constructive in the months ahead. 2021 will be a very good year for inflows. In firstbeen first in out of the covid crisis and exports have been resilient in the region so theres a lot of underlying pressures especially given the improvement in external positions but as you mentioned, im cautious in the shortterm. Some of the currencies have moved significantly. We are approaching key technical levels. Plus Central Banks in the region are becoming more resistant to gains. We had the bank yesterday highlighting warnings about the strength of the korean won. We had similar concerns about chinese baht and the yuan in terms of removing the reserve requirement on forward transactions, etc. , so it adds up to perhaps concerns about the movesnd direction of the in asian currencies. Haidi so what is the risk of Dollar Strength that you see . Erik my concern is that much of the market is negative the dollar, bearish into next year. Not just against g10 in particular. We know the dollar is languishing at multimonth lows. There is the risk that perhaps the outlook is not as negative. Our shortterm valuation measures would suggest the dollar is oversold at present and positioning also looks quite negative so we could see a bit of a bounce in a dollar especially if we hold key levels just below 92 but next year, we are again i suppose alongside the rest of the consensus, we still think the dollar will weaken but where we differ is we think there could be a bounce from your end. Outperformelieve you , there is a reason to be a little bit more optimistic on the dollar next year. Right. Good morning. Nuanced toery good make and nuanced to make an to make an nuance distinction. In terms of the funding currency, will that be the dollar or Something Else . Looking at real rates, for example. Mitul right. Good morning. Clearly, theres going to be a continued attraction to carry trade next year. Thesia, we will see indonesian rupiah, indian rupee, offering an attractive currency and that will attract inflows into these current needs. That theear in mind dollar will increasingly be seen as an attractive funding currency. The yield differentials from the u. S. Compared to a lot of currencies will mean the dollar could continue to remain under pressure as it is a funder for a highyielding em assets. Its not just asia. We could see that in a number of currencies next year where the dollar could remain under pressure and that is the nuance here that perhaps the dollar weakness this could be the surprise for markets. It may not be so much against g10 currencies but the dollar weakness could be against em currencies next year. Just to build on your earlier point, we heard from Central Banks in the last two weeks. The rbnz has indirectly but efficiently been able to push back the concept or perception of them entering negative rates. The bank of korea, ditto. You mentioned that yesterday, china is looking to exit may be emergency stimulus next year. Toyou think that is isolated those specific countries or are we beginning to see the trend of a recovery that is coming more and more into vision here . At thei think if we look asiapacific, that trend is clearly they are. We have seen a bottoming out of growth. We expect recovery to strengthen in the next few months in the asiapacific so it is no surprise that banks are becoming a little bit more wary of cutting rates. We do still see some isolated rate cuts in asia, for example, indonesia and india next year. I think that will still be the case where we have to see some push of growth but i think on aggregate, the region will probably see less easing. I think it is certainly a move away into negative rates for new zealand and for some other countries. I would not say tightening. For much of next year, policy on lower for longer across the region. As long as we continue to see the chinese recovery, support for demand, how much upside is there for the aussie, do you think . Good point. A chinas economy has been very resilient. It will continue to be, in our view. The export outlook for the region is positive and that does suggest the aussie dollar will continue to be supported. It hasy issue is is rallied so significantly that we may be pausing for breath, but the mediumterm would suggest that in an environment of likely dollar weakness, aussie dollar of course, as you mentioned, chinese economy that pretty resilient, that will help the australian economy continue to recover, it does suggest furthermore upside through the end of next year. I dont think we will see that 20 gain we have seen but perhaps a much more gradual appreciation of aussie dollar. It big surprise, maybe we get a cut from india next year. The recent inflation read really caused so caught some people by surprise. You think that is a oneoff, something to consider moving forward . Mitul it has been a big problem for india. Inflation has been above the rbis target for several months, well above the 6 top end of it target and thats really restrained their hand. As we go into next year, inflation will ease and this l and allow the rba the december meeting thats taking place next week, it seems a bit premature for the rbis to cut that meeting ultimately, they need to cut rates further as inflation falls and we think that will happen into next year. David have a great rest of your friday and a great weekend. Mitul kotecha. Since we are talking fx, its friday so just in case beer is on the menu, keep your eye on that. Joining that. Watch out for pricing. Over 550 million and of course, essentially to looking to use that money to help fund the recovery in the japanese capital. By a localovid bond japanese government. Details to come. That is within the morning session if not during the lunch break. Lets have a look at your latest first word headlines now and President Trump says that he will give up power if the Electoral College votes for a joe biden next month. Speaking at the white house, he said he would certainly go although conceding defeat would be a hard thing to do. The president maintained his claims of irregularities in the election. The Administration Says the result was rigged in a widespread Corruption Campaign but has failed to offer any evidence. New data on the phase i trade deal with china showed imports of u. S. Products slowed after hitting a high in september, leaving the full year goal out of reach. At the end of october, china bought just over 75 billion worth of prescribed good, about target, meaning a further 95 billion aims to be purchased by china before the new year. Reports from dublin say the European Commission has told Member States that a full deal on financial equivalence with the u. K. Is unlikely this year. The broadcaster in brussels adding that some progress has been made on bridging agreements. That withoutwarned further compromise, brexit negotiations may be terminated this weekend. Back here in the region, the malaysian Prime Minister has survived a key has been parliament, winning enough support for his budget plan. Haveprogram was deemed to passed on a vote, ensuring that the premise or remains in office and the budget moves on in the second round of debate. His allies calling for a vote of confidence and a potential election. The southern indian city of ennai is mopping up after widespread flooding. A cyclone came ashore with winds theseto 130, although very severe storms back in may, the cyclone killed at least 100 people in eastern india. It was the most powerful storm to hit the area in more than a decade. What is with 2020, is my question . Those are your first word headlines. David haidi still ahead, the top adviser to carrie lam will be joining us next. We will be discussing the plans of boosting the sluggish economy and that relationship with beijing, but coming up next, astrazeneca looks to firm up its vaccine results with another global trial after questions over its procedures. This is bloomberg. David welcome back. Lets talk about the vaccine front twists astrazeneca set to run another trial of its vaccines that comes into question for its program and the level of protection that it brings. Variousial tests claim levels of efficacy, sometimes as high as 90 , depending on the does participants were given. That brings in our Deputy Managing Editor in washington to clarify what we are talking about, so efficacy, thats a fluid term depending on who you ask. What exactly is the premise of this story right now . Rosalind the promise of the story is that the efficacy may have come out come about somewhat by accident. Given a half dose , even if itose turned out to be the best repeated,ould it be so it seems Like Astrazeneca is tong more trialing on that see if it is the correct outcome. Its also made some suggestions towardsting was skewed participants. Thatconcern about the way the trial was conducted in the way that the results were disseminated and basically, we are going back a few steps to look at everything again. It has been a week a rocky week for astrazeneca. That they concerned were not fully forthcoming about the results of the trial, and you know, what does that mean for possible approval of their drug, approval of their vaccine . Haidi on the topic of approval, the fda is close to approving some of these other vaccine alternatives including the one from pfizer. Does that mean they are more likely to have to wait until this latest global trial is finished before the approval comes through . I really think the u. S. Fda is likely to consider the Pfizer Vaccine first and the madonna vaccine, those officially developed ones and astrazeneca will take a backseat to that, thein any event, astrazeneca vaccine has been seen as something more for middle Income Countries and lower Income Countries because its much cheaper and can be produced across a wide range of countries so we have always seen it kind of has a great solution for the rest of the world. Last hour,ke to you the u. K. Has come out and said that they would like to consider approval of the astrazeneca vaccine even before the e. U. Considers it and it looks like the u. K. Really wants to go the full steam ahead there. It could be that its approved in the u. K. And then europe and then may be the u. S. After that. We know it vaccine will be part of the biden administrations pandemic handling plan. In the meantime, we have heard a little bit more from President Trump speaking to reporters today, saying it would be a very hard thing to concede. What are we waiting for in terms of deadlines . The kind of says he will physically step down and leave the building if the Electoral College makes that determination in bidens favor. Ros President Trump has always left a bit of an open question as to whether he would leave the white house, and everybody thought he would, but he just would see a smooth transition in the u. S. From one administration to the next. Get funds and briefings related to their transition, so this was the first step to President Trump, but for this step you has taken to really saying, yes, im not going to barricade myself in. I will leave and everything will be fine. And then he said you guys know that, when he talked to reporters. But you never really know until someone actually confirms so he is still highly defiant. He spoke for 25 minutes about all the debunked conspiracy theories, evidence of which has never come to light, never been discussed by trumps lawyers. You know, in court, where you have to tell the truth. Orlooks like one way another, there will be a smooth transition of power, even as President Trump does not go to joe bidens inauguration. It is at least a step in the right direction. Eventually if not the usual, orthodox procedure we have seen. Ros begrudging, but yes. [laughter] haidi coming up next, a significant drop in bitcoin leading a major cryptocurrency majorf, leading to a cryptocurrency selloff. Details, next. This is bloomberg. Haidi bitcoin has tumbled after rallying to a near record. It surged more than 250 over the last nine months, putting it among the bestperforming assets during the pandemic. It was joined in the drop by other digital coins. Adam haigh has more on this. What do we glean from this and what are the chances that this is kind of signaling a more thist and to the run bull run we have seen in crypto . It is where these declines have come from in relation to that huge gains we have seen this year. It has been a standout asset class and of course, a lot of people have been speculating that there are large holders of bitcoin and other digital coins, and those kind of holders wanted to book in some of the prophets that theyve realized throughout the course of the year so that makes sense in a way that there may be some reason for them to derisk a little bit, considering they have had such huge gains. You would see that in any mature asset market and mature asset class, so not uncommon maybe to see that and expect it. It was the veracity, the speed and magnitude of the declines on thursday that took a little bit of some people by surprise because, you know, the decline at one point, 14 drop for bitcoin, finished down just shy and thingshe day, are stabilizing as we go into friday trading. It will be interesting to see if we see that volume pick up friday, and whether we get further declines, but of course, many people will argue that this has been something that is well overdue. Theres lots of technical indicators that were suggesting a pullback in many cryptocurrencies, but particularly the likes of ethereum and bitcoin. The fact that we have this some ofhas may be reset those expectations. The question is now where we go from here and what we start to hear from the people who are longterm bullish believers in the cryptocurrency story. Right, because you and i know, these things cannot go up and down. It does happen. The other question is, is there actually more to this movement simply than markets taking some off . E frost off frosh adam some of it is to do with taking the frosh out of the market but theres a few other issues at play here and one is, you know, whether or not we are going into 2021 with a fear around concern around tighter regulations for the cryptocurrency market, and of course, that is something that is a moot point in up for debate still, but theres no doubt that there is an increasing institutional interest and ownership of cryptocurrency assets and Bitcoin Futures have novemberrd trading in and they continue to set fresh records pretty much every month which gives you an indication of the institutional use, of course, because that is where they are mainly used and if you see that continuing into next year, of course, you could see easily the return of the bull run. Have a good one. Adam haigh, our Bloomberg Markets editor come out of sydney. Lets get you the latest business flash headlines and have a look at some qantas because reports out of the country say the airline is in talks to move its headquarters from sydney to melbourne, a plan that could help create 5000 jobs in victoria. Qantas began a review in september, triggering the bidding war between New South Wales and victoria. The financial review says he met anypremier to discuss possible moves. Labor unions and activists have taken a stand against the proposed takeover of on the on air. The alliance opposes selling. Hares to the Development Bank Bamboo Airways is said to have asked for state aid as the coronavirus cripples air travel. Than 170t needs more Million Dollars after heavy losses this year. It is seeking help with both carriers wanting low Interest Rate payments for the next three years. More on the aviation sector, coming up. With a big guest. 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. Haidi just under one hour away from the open of cash markets in hong kong. You had carrie lam delivering her annual policy economic address and it was quite different this time around. She spoke to a legislative body with no members of the china moved tor disqualify lawmakers who are not deemed sufficiently loyal. An economist at Oxford Economics has this to say. Of main objective, he says, the policy speech, was to really outline what hong kong, china, like ingration looks the post National Security europe. A deputy of the National Peoples congress of hong kong. He joins us now to take us through the key points of the speech where we go with the economic and political story. That morning. As always, a pleasure to have you on the show. What is also worth noting when i listen to the speech, where they reference between the relationship between hong kong and the mainland, i guess we start with that. There is this notion that beijing might be exerting a lot more influence on the city. So tell us, in what way do you think that is an accurate description of the political environment in hong kong and to what extent is that a misconception . It depends on who you are talking to, for most of us from the business sector, we want to see more conductivity to china statusffirm hong kongs in the context of china because china needs hong kong to play that one country, two systems role. We affirm hong kongs status as the International Financial center so they are better improving mutual access to the financial markets, between hong kong and the mainland, we affirm its aviation hub status for china. That is important. This is a Major International hub for the greater bay area. 70 Million People will have better access. China will allow hong kong to buy a Minority Stake in the nearby regional airport, which will allow hong kong to have the main Aviation Network so thats amazing connectivity, allowing hong kong to connect china to the world and the world to china. This region of china china is big. Before the greater bay area, hong kong will play a role. Innovation and technology, china will encourage hong kong to work closely with shenzhen for developing this whole hub, innovation and technology hub. For many of us in the business sector, this integration with the mainland is a great thing. Of course, i know you started a question asking for the political side. Political side, unfortunately, one year of social unrest and then covid is tough. It will take time to heal the division in society. I agree with that. As a whole, i think hong kong needs china to retain our current status and hong kong cannot survive on its own. We need china. The whole notion of hong kong now integrating we need to be careful. When i say integrating, not politically. Under one country, two systems, we have a unique status, but economically, hong kong is very much part of china. Economy, toa, the help hong kong under this very difficult time. It is soon to be the worlds biggest economy. Its not hard to argue against that. The other question, given the political differences you mentioned, do you think that hinders the government from delivering the economic aid that the city drastically needs . It is never easy. In the world. One its very difficult because we do have their unique, different characteristics and the two systems. We are still one country. There are challenges but we can overcome these challenges over time. Real, i guess, dangers that we need to address is how the hong kong local youth can remain competitive because they no longer are just competing on our own. We are competing with a very large pool of very young talent from the mainland so that is also to do with the fear that we may be marginalized. As a city, also even like myself, also the youth for jobs in all these things. And these are the challenges. And then its probably no different to many other cities in the world, what they are facing. Haidi bernard, you talk about healing divisions and then you just spoke about the fear of disenfranchising the voice of youth. Over the past few weeks and months, we have seen everything from opposition politicians get disqualified from being able to campaign, they have been ejected from ledge co. , disqualified from ledge co. For violating processes. Theres virtually no avenue for opposition discourse left in hong kong. Do you think its necessary for the crackdown on opposition politicians to be so aggressive in hong kong and does that not run the risk of feeding into . Hat disenfranchisement bernard the government did not target them. The government only targeted those who allegedly are advocating for hong kongs independence against china so that is after the passing of the National Security law, they are no longer allowed. Years to given them 23 pass our own National Security law but we never did. They were patient with hong kong until last year, when they saw these things happening that they are so worried that there are Foreign Forces taking advantage of hong kongs unique status to disharmonize china so this is their worry and they basically set these red lines that we no longer are allowing hong kong to talk about independence. Obviously, i think most people in hong kong would not want to be independent from china because we need china as a country, as an economy, and so on. The socalled disqualifications, only targeting specific legislators who were involved in perhaps the obviously, they are still under court hearings. I will not go too deep into it. Would needg kong, it to have opposition. They are welcome to come back in the next elections. A large number of them have not committed any crime. They can easily come back to run again next year. But they chose to walk out. Walk out from the legislature. You talk about the one country, two systems, being something that has obviously over the past been to the benefit of hong kong. The proximity to china, the relationship to the economy, but the separate system when it comes to the legal framework, the judiciary has been coming under a lot of pressure. You have public prosecutors pushing forward all these protest cases, probation publications criticizing. We are hearing consideration as to whether british judges should even be there in the first place or whether they should be withdrawn. Foreignat a concern for investors, foreign businesses, setting up home, or who have their home in hong kong, to not know whether there will be an independent, you know, internationally recognized judiciary, to be able to back them if something goes wrong . Bernard judiciary independence is the key essence of the one country, two systems. Hong kong can continue to function as the Financial Center largely because of Judicial Independence. Its also unfortunate to see comments made by politicians in the u. K. To suggest, discourage or not allow british senior judges to come to hong kong. These senior judges are in hong kong because they believe in hong kong Judicial Independence and that the u. K. Should allow them to be here to make sure our Court Systems are fair. Comment, them not to its actually doing us more harm so i was so surprised about this, made by u. K. Politicians or diplomats because thats exactly the opposite thing from what they should do. They should encourage more judges with commonlaw background to come to hong kong. Youcourt system here, if we have hong kong news, the boot camp, the yellow camp. That is good news. The fact that the courts have been criticized by both sides, meaning they are mostly doing the right thing, that should be how it should be done. People like me should not comment on how the court operates. It should be completely independently on politicians. I continue toing believe that Judicial Independence is the key to success for hong kong so i just locallyolitics and overseas, it should not matter what court system. It did, china also not matter for the ecosystem. They leave us alone, too, because they see the importance of Judicial Independence as well. That fore would argue the most part, they do, but when, of course, the story comes and it happens that they insert Something Like the National Security bill, for example, then you get criticism over that view. My final question to you is you deal with carrie lam regularly. You are one of her top advisors or the top advisor. Frustration,iggest if you can share this with us, and what do we need to understand about the government being ableg and us to have confidence in the government to deal with all problems from the economy all the way to the political spectrum. Bernard theres two sides to the story. Politically, it has been challenging that after a year of social unrest, it takes time to heal, especially as a good portion of hong kong people are not necessarily supporting the government and so on, but in the very muchthe economy needs china. We need china to help us to actually get out of this current economic mess. China is doing so much better than us, much better than anywhere in the world so we need chinas support to help hong kong. But to align all the interests together, it has been very challenging for her. On one end, she has to deal with the covid crisis, how to revitalize the economy, and in the meantime, we dont necessarily get everybody behind the government in making decisions. There are some portions of hong kong that always secondguess the government, especially anything to do with mainland china, they secondguess her, but obviously, she has only one objective in mind, how to help thiskong and get out of Public Health crisis. I wanted to followup on your response about the independent judiciary and how if both sides are critical, it must be doing the right thing. Havinge even a point in a independent judiciary when beijing will bypass it to put through the National Security law . There arelevant when International Decisions being made by carrie lam . As i said, the National Security law has always been, you know, our job in hong kong to facet but we failed to pass it so china said hey, we waited for you for 23 years to pass this law to protect hong kong and the mainland so its only right for them to decide that, hey, we have delegated authority to hong kong but you failed to do so and that is why its legally allowed under the basic law and the constitution for them to do so so they did not do anything illegally. In fact, they followed exactly the procedures. Some people in hong kong would not like it. Prefer weould much pass this law in hong kong, too, but we failed to do so all these years and china said, hey, we cannot wait any longer, especially given haidi you are saying that this is a justification for why they bypassed the courts and legislature . He said that they did but theres a reason for it. Bernard this is not bypassed. That gives the impression that, you know, this is not legal. No, its totally legal. This is the National Peoples congress. They always have the authority. They delegated to hong kong to pass the law but we did not do it. Its not like they bypassed us. This has always been the purview for the National Peoples congress to legislate. National security law. It is not a bypass. David ok. That is quite clear when you look at the agreement back in 1997 that that is an implicit power when you look at basic law and then be able to insert something and in this case, you mentioned hong kong not being able to pass it. That gives justification for beijing to do the job that they were supposed to do in hong kong, as you mentioned. Tell us this. One of the things that has come up because of what has happened and you have justified that is what now stops beijing from otherthe same thing on issues. For example im not saying any issues exist right now, but that adds to come as a businessman, you would know this. Unpredictability of the policy ranging here in hong kong. How do you and how does the government address that . China has been repeatedly focused on those couple of redlines. A lot in hong kong do not have these redlines. They are more than happy to willing and happy and willing to leave hong kong alone. Why would they disrupt the special status, its a gateway for china for the business side. They do not want to do that so long as you do not cross the redlines and they are clear. You dont ask for independence and you dont try to destabilize china. So long as you dont cross those redlines, china would not want to test that. They are more happy to leave us alone and making sure the Business Confidence remains. Ok. D final question now for you. Thats at the economy. Speaking of crossing lines, im using that as an example, you talked of carrie lam. In terms of the economic blueprint moving forward, maybe most of the economic challenges here in hong kong probably get solved, if not close to getting solved, if the border gets open with mainland, that depends on both sides of the border. How close are we from reopening that border and are there any serious conversations about doing such in the foreseeable future . Bernard its interesting. Back in march and april, many of us in hong kong were so worried about china, whether the virus would come from china to hong kong, back then, we were like we dont want that to come. Now, it is completely the opposite. China would not want hong kong to come over because we actually have more positive covid cases than they do in the mainland of 1. 4 billion people. They have done so well by basically locking down so now, they gave us very high orders. They expect us to keep it down to Single Digits. 14 consecutive days, so until we actually reach these targets, i dont think china will likely open they will open the border in hong kong. Days. L try to go for 14 hong kong people are allowed to enter china but we will be under requirements,ine which im not going to encourage anyone to do so, so they will only do without the quarantine if we can keep hong kongs positive cases down to basically zero or Single Digits or eight consecutive 14 days or longer period. Bernard, really appreciate your time with us. Deputy of the National Peoples congress. We continue to reach out on all sides of this debate about the future of hong kong. Coming up next, the pressure a covid maxine may be sparking a black market in china with people using connections to secure access first. We have that special report, coming up. This is bloomberg. Haidi haidi lets take a look at how we are faring for this final friday trades and the week. Links given wall street was closed for the thanksgiving holiday but we did see a broader pause when it comes to the risk asset rally we are seeing globally. This is what we are seeing. Caution abounds for the markets. Asian equities kicking off friday in a pretty lackluster fashion. We are looking at valuations following what we have seen as a heavy rise in global stocks this month and we are still seeing superlatives. Australia looking set for its best monthly gain on record and looking like we could get pretty close to erasing those 2020 gains and looking at a backdrop of u. S. Dollar weakness as well and worth noting that we could see the bearish turn for the cost be given we have seen another 500 plus new covid cases reported out of korea today. Sticking with the virus and with drugmakers raising for a vaccine, governments readying distribution plans for logistic operations, seeing the black market in china is already abuzz with people using connections to get a shot first. We are joined by rachel chang. Given the nature of human behavior, this should come as no surprise, but how are people looking to get these vaccines first . Rachel it is something we always knew would happen. We are seeing it happen in china first because the regulator there has given emergency use authorization to the local vaccine shots as early as midyear so theres been some months now that the vaccine was out being disseminated to frontline medical workers, customs officers, and once a vaccine is out there, human nature comes in, the black market comes in, and now, we are seeing that this is happening in a lot of places. The journalists recording the story were offered a shot themselves a people they were interviewing for the story. We talked to people who would be pretending to be employees of a Certain Company to be eligible for the vaccine. We talked to people as well who were just given the shot because they had connections with local government officials. This is something that we will be seeing everywhere. Anyd this is precisely why alien civilization watching earth probably said we are not an attraction if we treat each other this way. On a more serious note, what are the wider implications of what is happening . Rachel there has been so much discussion over equality to access vaccines and how these vaccines are coming out now from all over the world, how they will be distributed. We know the rich countries are going to get them first. The most effective ones are going to go there first. Which people in which countries are going to get them first. Because there is so much urgency to get these vaccines, the supply will be very limited at the beginning. We will see this inequality play out across the world. Haidi our consumer and Health Care Team leader, rachel chang, on the black market for covid vaccines. Lets get you a quick check of the latest business flash headlines. Ray dalio is opening a Family Office in singapore to run his philanthropy projects in asia. The Hedge Fund Says he enjoys excellent ties with both singapore and china and is excited by what is happening in asia. Lawmakers within italys ruling party are said to be stalling the sale of a company to unicredit. They are opposing tax breaks to sweeten the deal as the lender looks set to take control of the worlds oldest bank. Havegrand is said to priced the ipo of its Property Services group at eight hong kong dollars, . 80 a share, below the midpoint of the range that would raise 1. 8 billion u. S. Dollars. Ever grand would receive about half of that. Speaking of oversubscribed, we are talking k an and the group seems to be unstoppable force. They seem to top the blumberg pop star power rankings. We do have one. They are the most popular act on youtube with more than one billion views in october alone. We spoke with them about their plans amid this pandemic. Have a look. Hello. Indigenousg language] we have been thinking about making more songs in different languages. We use of suitable one for each song and we want to deliver the message in the best way possible, so yes, we do not mind other languages. I think we are always trying to pursue new things musically and in styling, and like everyone, we are always learning and evolving as people, so i think that we really try to express that through our music and performances. With dream collaborations, i think we have been very lucky enough to have had some amazing collaborations come true so we are definitely open to any other fund collaborations that we can participate in in the future. [speaking indigenous language] haidi that is the k pop sensation black pink. For daybreak asia. Our markets coverage does continue. We take a look ahead to the start of trading in hong kong, shanghai, and shenzhen. This is bloomberg. Im doug hirsch. You may already know that goodrx can help you save up to 80 on your prescriptions. Unfortunately, Many Americans cant get to a doctor right now. The good news is that for many health issues, you can see a doctor online. Its easy. Just go to goodrx. Com, and with a few clicks, youll be treated by a licensed medical professional, all from the comfort of your own home. Visits are confidential and affordable. Need a prescription . Your doctor can send it to your pharmacy or have it mailed to you. Get the healthcare you deserve at goodrx. Com. And 00 a. M. In beijing shanghai. Welcome to Bloomberg Markets china open. I am Rishaad Salamat up. We are counting you down to the trading day. Manus has our top stories. Astrazeneca asset to resume vaccine trials. Global virus numbers rise and thanksgiving travelers defy warnings to stay home. New data on the phase