His big tech hitting two big is big tech getting too big . Shery we are seeing u. S. Futures slightly higher, up. 1 , this after we saw stocks falling in the selloff in tech intensifying in the u. S. With the fomc leaving the markets and a Little Information lot of questions about the state of the economy and the recovery. We are seeing japanese futures holdings that he at the moment. At this of course as we head for the boj decision. Really not much change expected right there. Stimuluscy to step up receiving. We have a new cabinet in japan as well with the new Prime Minister su,gaga. Right now, under a little bit of it has reached the 105 level. Key restocks gaining. 25 . We have Second Quarter gdp numbers coming in sightly better than expected, but still, the worst contraction since the great depression, down 12. 2 quarter on quarter, haiti. Haidi haidi. Haidi the Federal Reserve pInterest Rates near zero. Interest rates near zero. Ever evolving to medications strategy it unveiled last month. We believe this Forward Guidance we have announced today will provide strong support for the economy. Effectively, we are saying that rates will remain highly accommodative until the economy as far along in its recovery and that should be a very powerful payment in supporting economic statement in supporting Economic Activity. Shery joining us now for inside is a former president of the philadelphia Federal Reserve, charles. Kathleen hays is here as well. Charles, great to have you with us again. Let us start with how long term the fed and jay powell are being right now. There is a sense i get that parts of the market were disappointed that there was no more guidance, more of a watershed moment, giving the meat on the bones to the new inflation targeting strategy. Is there a sense that this is more shortterm as they are trying to just move beyond what the next six months, 12 months, of the virus looks like . Charles its very complicated and im pleased to be with you guys again, but i think, honestly, i was a bit disappointed in the long term statement. They are trying to respond to a very serious shock. Its unclear the implications of this and what their longterm strategy might bp or they have a huge problem. They have turned Monetary Policy from their previous longterm statement, which set an inflation target of 2 to one , with anow quite vague lot of uncertainty and complexity about how it might be executed. They have not been very clear about that so i think they have got a communication problem as that in mytrategy view leaves a lot to be desired. Haidi is it may be a communication problem . Is it also a potency a problem . Because behind the scenes, they are trying to work out what more can they do . Buying trillions of dollars of bonds, excessive guidance, and talking to the market, and yet, there is no clear way forward to getting inflation up. Charles i think that is the i would say the elephant in the room here is the fact that the fed had inflation targets. I was there when it was created. It was a very important step. Many people some people feel its been below 2 now for quite a long time. They struggle to get it to 2 . I think the real question is why did that happen . Why did they not get it to 2 . What now makes them think that they can get it to about 2 . Theirs going to change in policies and actions that will get it to 2 and that is the question that has not been answered that they need to address. That theire worried credibility the expectations of inflation might become too low. Their credibility is on the line, and now, they made some more promises and why should the market believe those . Kathleen i want to jump in here because it seems to me that this whole conundrum becomes more difficult. The fed throws in maximum employment if not maximum inclusive employment. First of all, how do you measure maximum employment . Number two, inclusive refers to gender, ethnic group, etc. Big, blunt Monetary Policy tools seem to be expected to act more like surgical tools here. Charles i think you are exactly right. One of the problems, aside from the inflation targets, when their expansion of the employment mandate to what they call exclusive employment, which dont get me wrong, inclusive employment is very important and an important objective of government policy. Policy has little effect on that. We find it difficult to be used to achieve specific this traditional goals like this. Includingd that by this and emphasizing distributional aspects of the labor force and employment, the fed is walking itself into being held accountable for that and huge political pressure to do things that perhaps it cannot do. Fed isnother way, the giving Congress Another way to not take responsibility for things that many people would say are much more of the province of government and elected officials. I want to ask us about inflation. You have concern that given what came out of the cares act, given the fact that there is a lot of liquidity, a lot of money thats been created, there could be a point where there is a kind of tinder that could lead to acceleration. How would this work . You look at technology, globalization, so many forces keeping inflation down right now. I think my concern is that in many ways, this infusion of liquidity, if you will, for lack of a better term, this infusion of liquidity is very different than what occurred in the financial crisis. Crisis, the fed increased reserves in the Banking System massively through their quantitative easing. Those reserves did not go anywhere. We sat in the Banking System and we are still sitting in the Banking System. As a consequence, traditional money measures, quantity measures of money, like it did not rise very much. In this episode in the last six months, it has exploded. The money has gone out of the Banking System. Its gone out in various ways. The savingsh that, rate among consumers has skyrocketed. Within infusion of cash from the fiscal policy and government grants and transfers of one sign or another. In some ways, this episode is quite different from the financial crisis, and if the uncertainty about covid and Health Insurance begins to wane, the economy gets stronger, that money is already out in the economy and will be the source of inflation. How much, it is hard to say. That ought to be a concern to some people. I dont hear the fed about that. So in terms of what happens next, charlie, what do you think the fed does or does not do . Do you think the fed is going to not raise its key rate until 2024 . Charles i certainly do not know, but i would say this. If the fed is trying to make up 1. 5 he last 10 years of inflation, its going to take 3 inears of inflation at order to offset the shortfalls. Well,ve to ask yourself, inflation has been running at 3 , assuming they can get it up there in the first place, after four years, do you really think the fed is going to stick with that and inflationary expectations might not rise . Ay begin toy m renege on this commitment to keep inflation high in order to bring it back down closer to their goal. Shery appreciate your time. Have to leave it there. Charles, really appreciate your time. Charles plosser, former president of the philadelphia Federal Reserve. Lets get to Karina Mitchell for the first word headlines. Karina the bank of japan means today on sugas birthday. He was elected on wednesday. The boj is inspected to keep its stimulus untouched later as the country look to recover from its worst economic crisis in decades. Suga has pledged to continue shinzo abes economic policies which included aggressive boj easing. The World Economic slump will not be as bad as initially feared according to the oecd, which revised its forecast up to 4. 5 from its prediction of 6 back in june. They gave big revisions for the u. S. And eurozones as well as china, which is now expected to grow modestly. It says economies will still need the support of government and Central Banks to aid in the recovery. Companies have sold the most Corporate Bonds ever this year. Central banks expand money supply, pulling bond yields to record lows. That is proving a boon for investment banks. Firms have sold two point 6 trillion in notes across currencies in 2020, already surpassing previous fullyear records. J. P. Morgan chase, for one last week, raises a fullyear supply forecast to 1. 7 trillion. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Shery, back to you. Conflicting ahead, statements out of top u. S. Officials, and President Trump, over when a vaccine may be available. Dates range from the month to the end of next year. We will discuss what the prospects for treatment are a little later this hour. But first, the president said he is not happy with what he has heard about the terms of the oracletiktok deal. We will have the latest, next. This is bloomberg. President trump saying he is not happy with what he has heard about the terms of the deal. Bloomberg has heard that oracle will get full access to tiktoks source code but that has not alleviated the security concerns. Lets get more clarity on this from Foreign Policy reporter nick watt. What do we know so far about what the administration does not like about these new details we are learning about the deal . Say thethink when you administration, its really two people. One is the president and the other is pompeo. Her biggest concern is that early on in this process, the president had said that bytedance had to sell tiktok, and in the intervening time, what we have seen is that there is a deal now on the table where oracle would take control of tiktoks assets in the u. S. They would get a lot of control over its source code. They would not being a complete divestiture by bytedance. Theres a lot of questions about how much more control bytedance would have over tiktok, what its ownership stake would look like, and whether you can fashion a deal that regardless of all of that is still sufficient to please the president who has a lot riding politically on his promise that there would be a complete investiture. Thats where we are right now. Alsod a deal that would have to receive approval from beijing as well. Is there a sense that this is a stalling tactic . Because very well in the back of bytedances mind would be, you know, things could very well change post november. Thats a great question and its a huge gamble that not only bytedance but a lot of countries and companies have to make. If they bet wrong on joe biden and looking for an easier way out then, if the president winds secondd term wins a term, he has threatened to come back harder. Hes saying if you want to deal, you better get it now. Theother question is president himself has imposed a deadline of september 20 upon them. He says it has to be done by that date, so hes very conscious of the election coming up, and he is setting this deadline now so what you are really seeing is a scramble to just a few days from now that gives both sides very little room to maneuver here. Shery we talk about the possibility of biden coming in. What if President Trump actually stays in the white house post november . If we start with tiktoks operations, how much broader could this pressure, these pressure measures against china and Chinese Companies, get . Nick it could really go very, very broad. Peter navarro, the trade advisor, who says, listen, we cannot trust any chinese apps in u. S. App stores. We should not have u. S. Made apps on chinese phones. We should not have huawei and 5g systems. We should not use chinese understudies cables. Really, they can go as far as they want. They are worried about Chinese Companies producing refrigerators that may connect to the internet and potentially go back to chinese servers. There is a lot of concern by hawks in this administration who say you cannot trust Chinese Companies of any u. S. Data and by that, they mean any Chinese Companies. We are still waiting to see how far they can push it should trump get a second term. Our Foreign Policy reporter in washington with the latest. U. S. Health officials dont see i when we will have a vaccine. We will be getting Anthony Faucis timetable, next. This is bloomberg. This is bloomberg. Shery President Trump says the state is making Good Progress toward the vaccine and that one will be ready to administer very soon. Pres. Trump we will deliver and distribute the vaccine. A very safe and effective manner. Inhink we can start sometime october. As soon it is announced, we will be able to start, that will be midoctober on. That may be a little bit later than that. We will be all set. Shery President Trumps initial target comes from conflicting estimates by a top health officials. Anthony fauci shared his timeline with David Rubenstein. The department of health and Human Services says its plan is to have everybody vaccinated by the end of the First Quarter of 2021. In your view, is that realistic to occur . That is possible, david, but to get everyone vaccinated, logistically, that will be tough. There will be tens of millions of doses available by the end of the year and in the First Quarter. As you get to the end of the First Quarter, there will be hundreds of millions of doses. Whether or not you can get injection into everyone, and remember, it depends on what the vaccine is. If it is the moderna vaccine, its a prime followed by a boost 28 days later, so i think we need to be careful. It will be aspirational to do that, david, but i think it is more toward the middle to the end of the year that you could get more people vaccinated. David are you reasonably confident by the that by the 2, of this calendar year, 1, or three vaccines will be approved by the fda . Dr. Fauci will have been made available in the sense of either by the formal approval or by an emergency use authorization. But to repeat your question with a firm answer, by the end of 2020, namely november, december, i feel reasonably confident that there would be one or more madenes that will be available to the american public. That was dr. Anthony fauci speaking with the Carlyle Group cochairmen and Bloomberg Contributor David Rubenstein. Lets get more analysis on the conflicting vaccine timelines. Shell cortez joins us on the line. Variables when it comes to this, notwithstanding the fact that there are multiple different types of vaccines we are talking about. What could potentially cause a delay in that timeline, and what is realistic at this point in terms of managing expectations . Michelle well, we dont really have any evidence yet about whether or not any of these vaccines are safe and effective. We have some preliminary information that looks good, and that basically looks at what the vaccines are doing in terms of spurring the immune system onto attack the virus should it appear, but normally, when we talk about vaccination, we need protection for months and years, and we are only looking, at this point, for weeks worth of coverage, so theres a huge number of things that could go wrong. Certainly, any kind of a side effect that would pop up. We saw last week with astrazeneca, that could come. Once we start getting results, it could be that they are not going to work terribly well. Hopefully, everything does go forward. We do have over 100 vaccines in development, and as we heard from across the board, Public Health officials, political officials, everyone, they are hoping and believing, truly believing, that by the end of this year, we will have at least one vaccine. Shery President Trump in todays press conference is saying he does have confidence in robert redfield. The reason that he had to say this is because of course we continue to hear about these tensions, interagency tensions, between President Trump and some of his top officials. What are we seeing on that front . Michelle there is definitely tension when it comes to almost everything about coronavirus and certainly with the vaccination. Smoothingl kind of approach that the administration is taking, making sure that every hurdle and challenge that they can foresee, that they are anticipating and trying to deal with ahead of time. So it can happen smoothly. And then Public Health officials, who have a little bit the experience with vagaries and the challenges of getting a product developed and into so many people. President trump is saying that i mean, it is astonishing. He saying we will start vaccinating people next month, within 30 days, 1. 5 months. And saying that dr. Redfields plan, expectation, that even a year from now, we would be fully vaccinating people, its too slow. Start, until we actually this process, we are not going to know how well it goes, but dr. Fauci i think, as he has this entire outbreak, he was saying its aspirational. We could have the entire country vaccinated by the end of the First Quarter. It is astonishing, but that is the goal. Shery Michelle Cortez with the latest on everything to do with vaccines and the coronavirus. Lets get a quick check of the latest business flash headlines. Jack ma seem to be listed jack mas soon to be listed ant group. The regulation stated that loans should not exceed the firms net assets while funds raised via bond sales and assetbacked securities will be capped at four times. Ant is the largest player in Online Consumer loans and is preparing what could be the largest ipo ever. Snowflake soared by as much as 100 66 in its new york debut, giving it a valuation of more than 70 billion dollars, more than uber and they opened at more than double the ipo price. The ipo was a record for us. The biggest in the u. S. This year. Raising 9 billion in the largest ever debt deal, tapping into a demand for yields while trying to survive a cash burn of 27 million a day, secured by deltas frequent flyer program, it may yield 5 . Up next, its a big day for Central Banks in asia in the wake of the fed meeting. We are anticipating decisions from the bank of japan, indonesia, and taiwan. A preview, next. Do not miss our exclusive interview. Food panda is expanding in asia. This is bloomberg. We believe that, particularly, this strong Forward Guidance, powerful Forward Guidance, will provide strong support for the economy, and rates will remain accommodative until the economy as far along in its recovery and that should be a powerful statement in supporting Economic Activity with inflation running persistently below 2 . We will aim to achieve inflation moderately above 2 for some time. 2 that inflation averages over time and longerterm Inflation Expectations remain well anchored at 2 . The market has improved but it is a long way from maximum employment and it will be some time getting back there. My sense is that my fiscal support is likely to be needed. The details of that are for congress, not for the fed. We will leave the strong policy guidance will serve the economy well by promoting our goals through the many possible paths recovery may take. Shery that was Jerome Powell signaling three more years of near zero rates in the u. S. Visiting ahead for Central Banks in asia, we will be hearing from the boj, the bank of indonesia, and taiwan today. Kathleen hays is on top of all of the action, but lets get started with the boj. We are not expecting anything huge but we are still watching it very closely. Kathleen we just had this momentum change of the leadership at the top. Shinzo abe giving way to suga, and definitely coming into this, he made it very clear that he is going to sue work abenomics. He is going to support everything, the three arrows, monetary stimulus of more fiscal spending, more structural changes that Prime Minister abe instituted, and of course, governor kuroda had a big part in carrying them out. Of course, its very important that this is such a seamless change for the boj because theres no question now that the boj, in a sense, under governor kuroda and shinzo abe, closely linked in terms of going for a policy supporting it. Executing the policy, governor kuroda is in charge, trusted to carry all of this out. On the nuts and bolts of the whole thing, the boj will leave its key rate at negative. 1. Is going to keep its asset purchase is going even though you can see how big its Balance Sheet has gotten. Every central bank in developed countries around the world have a pretty big Balance Sheet right now. They are fighting the worst recession on record. Three straight quarters of negative growth. The consumption tax helps get off. When the covid hit, the pandemic, worst possible timing. The contraction in the Third Quarter was not quite as bad. There are signs that its less bad. It may not be improving a lot in japan but the numbers are less bad on things like industrial production, exports, etc. As far as what governor kuroda and their policy statement may signal, the boj, according to our team in tokyo, who spoke to some people familiar, figures theres no need to do anything more. They put a couple of lending programs from banks to Small Businesses to keep people employed, make sure they have credit in place. Financial markets are stable. They dont need to do anything. They might upgrade their assessment of the economy because of the signs of improvement, so maybe in that way, he will echo a little bit what jay powell and the fed did today. Haidi thank indonesia is the other big one we are watching, kathleen. This is really interesting. Theres obviously concerns about the weakness in the rupee. Also, we will be looking to see the issue of centralbank independence addressed in the comments. Kathleen absolutely. Theres a big push right now for the centralbank to make sure it does not get pushed back and has some of its independence taken away from it. In terms of what they are looking at, lets start with a chart. Bank indonesia has already cut its key rate by 100 basis points this year, and all the while, they have had to look over their back at the rupiah. They also had to counter a week rupiah. Take steps along the way or pause. That is why they are pausing now. Look at the other side of indonesias coin and that is the economy. 5 for theaveraging longest time, is now negative. You can blame the pandemic. You can blame covid19. Nevertheless, its something that is slamming the economy. As you can see our chart describing it. That is the change in Interest Rates. They are definitely on a path that they want to that they want to correct given that their estimate now is that to put three percent on gdp. 2. 3 on gdp. The bank of taiwan, they are going to be meeting. They are so unique in many ways. Taiwan is expected to grow about 1 this year just behind china. One of the few sort of Major Economies that is showing positive growth. Their economy has been getting very strong. In the past, they have intervened from getting too strong and blocking off exports. Theaps some commentary from central bank itself suggesting that now they are more willing to tolerate this stronger currency, which in the past has gotten them in trouble with the u. S. , but with the rift between beijing and washington, a be thats another reason why taiwan can skate past that. I think that is the focus when it comes to the central bank of taiwan. Hays. Kathleen we will be bringing you exclusive insight when it comes to new zealands economy tomorrow. The finance minister joins us at 8 30 a. M. If you are watching in sydney. That is a big interview you dont want to miss on daybreak australia. Karina lets get right to it. Bloomberg learned that oracles short oniktok remains answering Key National Security concerns over Data Security and chinas ongoing influence. We understand oracle will now get full access to tiktok daybreak asia two tiktoks source code. The agreement remains on the table ahead of a september 20 deadline. President trump says he expects a briefing on thursday morning, u. S. Time. Hong kongs government has formally protested the Trump Administrations move to label imports from the city as made in china rather than made in hong kong. The citys secretary for commerce and economic involvement said the move was irresponsible and highly inappropriate. Hong kong made a complaint to robert lighthizer. Las vegas has hired lawyers to conduct a new investigation into employee transfers of more than 1 billion at its marina bay casino in singapore. The law firm was appointed after Singapore Police began a probe. The doj is also investigating. Last year, a gambler sued, alleging 7 million of its own money was transferred without his consent. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Shery. Shery coming up, is suganomics the next outlook for stocks . The japan strategist, nicholas smith, joins us from tokyo, next. This is bloomberg. Take a look at how japanese futures are looking at the moment. We are seeing a little bit of 105 level. The of course, we have seen we are expecting the bank of japan to come out with its policy decision. Not much expected on that front. Of course, this is the first decision since we have you should he is through the since we have suga in his cabinet as well. We are seeing pressure. Treasuries to track lower. We had the feds Rate Decision here as well. As i just mentioned, suga settling in as japans Prime Minister. No modern japanese leader taking over from a long serving premier has seen stocks fall on their watch and our next guest says suga may surprise as much as abe. Nick smith joins us from care. Always great having you with us. Will this applies to the upside downside given actually, since abe arrived on the block, we had a 68 outperformance of msci. I think we will be surprised. Ith suga he is quite an impressive guy. When abe became her minister, i said i think that actually, this will be the man to remember. Similarlyga is impressive he does not come with historical baggage of having been born with a dynastic silver spoon in his mouth. He has no factional loyalties. He has strong control of the bureaucrats after basically have controlled their pay and promotions for seven years, eight months. He has a similar policy pallet to abe because he was the wellspring of many of the ideas as well as the fixer who made them happen. North, veryhe far much interested in regional revitalization, so tourism, and i think, speeding up casinos. That is certainly a positive for the casino. He said japan has too many regional banks. The boj and the Financial Services agency agree. Saying do not touch the regional banks and that includes activists. They will be leaving that as a life raft. Its not only about regional banks. He wants a lot of reform. Hes been calling for telcos to change as well. Will this pressure sectors . What are we expecting . Nicholas sure. Of course, thats a story we have had before over the years. You get a selloff and then they start to come back. You got to think about the companies having the funds for 5g introduction, for example. Probably the selloff in telcos is overdone. That said, i just dumped one of the telcos out of my portfolios, saying probably, the sales are overdone, but there will not be a whole lot of good news coming in for a while, in which case, you might make better money elsewhere. Talk to me about your investing strategy under suganomics, some of the sectors you expect him to focus on with the Domestic Versus International focus as his priority. What would you be looking at . Nicholas well, i think what japan has done particularly well, and it has not got the credit for it, is it has handled the coronavirus extremely well. I am not listening to the asset test as the fatalities of the u. S. Is 51 times higher than japan and japan has been very careful about it. To government has had power tell people and they have been obedient to what the government suggests. The economy coming back reasonably fast from here, and therefore, what has been hurt his not so much the goods, but services, and also things like railways. Also, the east Japan Railway has been hit recently. That will have quite a recovery under that. Talking about a digital transformation. Gdp is one of the worst in the oecd. Its funny that the japanese make technology. Italians making great cars but they cannot drive them. He is creating a digital agency. I think thats going to increase the demand for engineers, and obviously, we have got labor under supply so some of those Companies Like related to supplying engineers, would be very interesting under this government, but generally, i think what we should see from here is a pickup and everything related to services. Helmsmaninzo abe was a on the global stage. He prioritized building these global alliances, relationship with the u. S. , and was very successful at that. If suga is more of a domestically focused p. M. , what does that mean for the appeal of brand japan for Foreign Investors . Nicholas sure, i think people have made a lot of the fact that suga does not speak a whole lot of english. Most japanese Prime Ministers have not spoken a whole lot of english, but what he is pointing out is to say, for the seven years and eight months he was chief cabinet secretary, obviously, he was in all of those International Meetings with abe. Its not as if he does not have a good grasp of it. On the domestic side, he known thehe maestro, the fixer, wellspring of ideas per it on the international side, he has brought in as foreign minister the person who has been working on the trade deal with the u. K. I think he will handle that perfectly well. Obviously, there are a lot of issues that are quite complicated to deal with at the moment. He is probably more openminded towards that van abe was tha t than abe was. I think that they will handle the foreign side very well. Haidi nicholas, always great to have you. Nicholas smith with us. Coming up next, the economy. We have an interview with the alphabet cfo on silicon valleys reach and the scrutiny it increasingly faces, next. This is bloomberg. A quick check of the latest business flash headlines paid dortch a blank Deutsche Bank plans to tell its employees they can work from home until 2021. The plans contrast with jp morgans strategy of getting them back in the office next week. Georgia has been shedding staff at 5000 employees, set to occupy new u. S. Headquarters in 2021. J. P. Morgan chase is no longer allowing junior sales and trading staff to take uber to work at the companies expense. They helps workers feel comfortable commuting to the office. More of the banks workers are planning to resume working at offices in new york and london with senior traders required to return next week. Sonys highly anticipated playstation 5 will go on sale on november 12 in the u. S. For 500, matching the price of the xbox series. Sony also announced that the next final fantasy game will be a console exclusive for playstation. Significant for the japanese publisher. Big tech continues to feature in regulatory crosshairs. Google is no exception. The search giant has vowed to be more transparent after forking out over 9 billion in antitrust fines in europe alone. Alphabet cfo spoke about the mounting scrutiny in the latest episode of the David Rubenstein show. Some people say that the googles of the world, google, facebook, microsoft, apple, amazon, are too powerful. They have so much power in our economy that it is not healthy. Theres been congressional hearings where the ceo testified. What is your response to the view that the Technology Companies are becoming so dominant in our economy that it is not healthy . We are very mindful of the fact that with the scale of the Company Comes scrutiny and its incumbent on us to engage with regulators and help us understand that what we are doing is a benefit. How are we providing Better Services at lower cost . Which is really indicative of the competitive nature of the world in which we operate. Intense competition within the u. S. , intense competitors outside of the u. S. , and you know, i think this covid experience, Many Companies and individuals would not have been able to operate the way that they did without the support and benefit from technology, but it is a fair question, and we are engaged constructively here and around the globe with regulators on it. You have more than 100 billion dollars of cash on your Balance Sheet come on a lot of cash. Why do you need all that cash . Why not just dividend it out . Ruth we had 120 billion, but who is counting . But you are right. When i got to google, there had been a longstanding view that it was helpful to have cash because of the optionality it provided. And i think the question i posed was how much is too much and how much is too little, and we can can we try and dimension that analytically . And put together the data that about a conversation getting a Share Repurchase program. And it started small, but we have now increased it five times in the last number of years. The last one we tested in the Second Quarter, 20 billion authorization, and so, it has been a journey. We have been increasing the return to capital. Now, i spent a big chunk of my career covering firms like carlisle private equity firms so i appreciate what an efficient structure looks like and this is trying to get the balance. That was the alphabet cfo speaking with David Rubenstein. You can catch that full interview tonight at 9 00 p. M. If you are watching in new york or thursday at 7 00 p. M. In london and hong kong. For more on big tech, softbanks has been working to take Corporate Private and merge it with his yahoo japan assets to better compete with the likes of google and tencent. They are now planning to proceed with what is known as a squeeze out to take the messaging firm private. Our asia tech reporter joins us now. Tell us more about what is happening. Theres a lot of restructuring going on right now. Yes, there is always something going on. Of a greater deal where softbank is combining its online business. In the first step of this complex transaction is softbank. Minority shareholders have raised objections to the price being offered, complaining it is too low, and yesterday, we found out the details. As a result, you know, softbank 88 million shares. Still, about 20 of stockholders are holding out. It forced them to part with their shares Going Forward and it will require an approval. I think there is every indication that they will succeed. Why is softbank japan trying to merge business with messenger . They are wellknown for their vision fund overseas but actually, it has done zero in japan. The strategy here has been different. Corp. , ahas softbank wireless carrier, and it has become something of a juggernaut of internet businesses. It has quite a bit of overlap, but the messenger has never managed it has something softbank never managed to get. About half ofers, which are actually overseas. Thailand, taiwan, and indonesia. In july and everything, there is a creeping existential fear that japan is falling behind in ai. You have executives coming back completely shellshocked. Amazed at how quick the companies can shift products. Tiktok is a prime example. It is an example of a threat that crosses geographical and cultural barriers which until now have kept a lot of the japanese Internet Companies safe from overseas competition. Ultimate goal the here for him getting his house in order . Pavel in japan, it is the assetsto merge of these two companies, to combine their engineering teams, to sort of put japan on the map when it comes to intelligence. The companies were not beating around the bush. The goal is to be able to stand up to the faangs, facebook, alphabet. I dontlofty goal, but think that there is an option in not trying. Is tech reporter with the latest on softbank. Coming up on the next hour of daybreak asia, pepper internationals carol pepper joins us for asias major market opens and tells us why she is still buying into asian tech. Plus, a busy day on the economic front continues. Joins us to preview key Rate Decisions out of asia following the fed. This is bloomberg. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Cheri bustos welcome to daybreak asia. From bloombergs headquarters in new york, im shery ahn. Shery and i am haidi stroudwatts in sydney. Asian markets just opened for trade. Head for a caution start after powells warning of an uncertain economic rebound without a fiscal stimulus. Investors are awaiting decisions from japan, indonesia and taiwan. President trump says he doesnt like what he has heard of the plan. And Facebook Says advertisers are returning as the social network sets up efforts to tackle hate speech. We hear from the Vice President , nicholas mendelson. Shery japan, south korea and australia are coming online. A busy day with centralbank decisions. Lets get to the Market Action with Sophie Kamaruddin in hong kong. Sophie we are keeping an eye on banking stocks this morning. The bank index is gaining 0. 7 , after we saw u. S. Yields retire overnight which could add more fuel for value hunters. At offshore yen is hovering near a july high. Afterare slightly higher the opening was in treasury. The 10 year yield for the u. S. , just pausing after rising for three days. Lets check in on the mood in seoul. 0. 2 . Is off by the korean won is gaining ground, up 0. 1 against the greenback, trading at its highest since january 23, after the dovish fed message, seen as a boon to em assets. While we are keeping an eye on stocks in seoul, this company will make a decision on a potential spinoff of its battery business. We are keeping an eye on that. Telecom ashing sk well, as one store is preparing for an ipo next year. The u. S. Industry is lobbying for federal incentives to keep manufacturing of semiconductors at home in the united states. Lets check in on the open in sydney. If lets start for the asx 200. Keeping an eye on miners after prices. Stalled midweek the aussie dollar is under pressure ahead of the jobs report from australia. We have the kiwi dollar under pressure. Kyrie stocks are gaining ground after the latest report off that contraction for new zealands economy. That was expected. I want to put up the board to see what is going on with a big picture view. We have investors overweight u. S. Especially in the tech space. Are close to capturing a record share of the msci road index. Msci world index. But one analyst is recommending shifting gears, claiming that he sees u. S. Stocks underperforming stocks in the e. U. Next year. Investors leaning into the growth scheme. Checking in on some movers, we want to mark reaction to softbank. Neighbors saying they would like to take my encore private. Some shareholders take lie encore private. They squeeze out may be in the works. The proposed move was announced in november as part of efforts at softbank to compete with global tech giants like google and tencent so this is reaction to that news this morning, haidi. Haidi something to watch for. Sophie kamaruddin there in hong kong. Lets get more on the markets. We are joined by carol pepper, ceo of pepper international. Again, we sawtek in the u. S. Hition taking a decent overnight. When will we see a rotation into value . Is it just that investors are goingg the jitters into the election and uncertainty when it comes to a vaccine . The fed does not look like it will offer much more, and were seeing more cash on the sidelines. Carol i dont think it is a signal for rotation into value at all. It is a broad consensus that this pandemic is going on for 12 more years, so the tech longlegs. If you are a technical trader, this is not a bad place to exit and take your chips off the table. There is a good chance of some the market for the market between now and the election. You can jump in at a lower price. I think it is as simple as that, there is nothing fundamental that shifted in the tech story, in fact, it is getting stronger. Powellse today move affirms that the pandemic look at the new to drive the economy and how countries cope with it and how they recover. So that text only has long legs. I wouldnt take it as a value signal. Haidi just the level of uncertainty was really conveyed in what jay powell said overnight. In that sense, do you then turn your attention away from we were just talking about u. S. Exceptionalism still prevailing. Do you agree with that in line with the uncertainty over the virus handling, the look more to asia, where across some of the economies, you have seen the virus situation being handled the than elsewhere . Carol absolutely. Asia is an interesting market for growth. I would rather go into asian u. S. Value by a mile. There is a lot of interesting things happening in asia. Tech is more accepted by the consumer, it is much more an integrated part of life. This transitional period where we have to work from home and remain distant from each other has been more accepted in asian countries. And i think they will do extremely well while the u. S. Will continue to have struggles to get citizens to wear a mask. It is unbelievable to the rest of the world that that is the case here. It is really true. Shery and it seems the new economy plays around asia are doing well. But they seem to be focused on on what is happening in asia particularly with alibaba and so for. Asianst of the south markets, do they have economy giants that could get support, that could actually really provide some value for investors . Carol as an investor, frankly, it is good to play the region. A good example of what is going on, for example, with singapore Governments Partnership with apple to pay their citizens via this app they are creating. If it does well in singapore, that will spread out over the entire region and there will be more opportunities for growth coming out of an effort like that. There may be hungry and copies of this or iterations of this that will benefit local companies. I think we are just on the edge of things getting even more techfocused. Every country will have solutions that are very particular for itself but will also benefit from the original changes and the way tech has ruled out all of the region. Shery we have centralbank decisions across asia. Today the expectation right now is that monetary support has been enough so far, at least until they gauge how much has been done already. Will this tapering out of Monetary Policy and evening tightening and even tightening of fiscal measures, have an effect on the market . Carol definitely . Carol . I dont think that world is ready for a tightening of fiscal support. The world still needs fiscal support. We are still playing whackamole with the virus. Control. Ill have more but you have seen everywhere that a country opens International Travel and the virus spikes up. It is a truly widely accepted in globally standard protocol for vaccination that is needed which may be at least two years, maybe three. You will continue to have this up and down. As much as triple are talking about tightening, it will not happen yet. I dont think they will be able to. It is a great idea, but we are not there yet. Everybody needs support to get through this period. Shery carol pepper, great to have you on. Return to Karina Mitchell for the first word headlines. The bank of japan it makes first job ass Prime Minister. The boj is expected to keep its stimulus untouched as the country looks to recover from its worst economic crisis in decade. To continuedged shinzo of his economic policies which included aggressive boj easing. The World Economic slump will not be as bad as feared, according to the oecd, which revised its forecast. The oecd gifted revisions for the u. S. And the eurozone, as well as china, which is now expected to grow modestly. It says the economies will still need support from the government and Central Banks. President trump said the coronavirus maxine could be disturbed and widely as early as october, contradicting statements from the top health officials. A senateem told hearing that a vaccine will not be available at least until march. Dr. Fauci told bloomberg he is reasonably confident of a vaccine by yearend. By the end of 2020, namely november or december, i feel reasonably confident that there will be one or more vaccines that will be made available to the american public. Kongs government has formally protested the Trump Administrations move to label imports from the city as made in china rather than made in hong kong. They called them with irresponsible and highly inappropriate. Hong kong has made a complaint to the u. S. Trade representative, robert lighthizer. Global news, 24 hours a day, on air and quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. You. , over to haidi we will get more on the geopolitical tensions next, as President Trump said he is not happy with what he has heard about the terms of the oracletiktok deal. Natixis chief asian economist joins us to review decisions from asia following the fed. This is bloomberg. Shery oracles tiktoks bed still hangs in the balance, with President Trump saying he is not happy with the terms of the deal. Bloomberg has learned that oracle will get full access to tiktoks source code. Lets get more from the bloomberg editor of global technology. Tom, great to have you on. Give us a little more of the details but you have heard about the deal with oracle and tiktok s u. S. Operations. What is getting tiktoks source code mean . Tom oracle really wants the deal to happen and oracle is doing everything it can to reassure the Trump Administration that National Security concerns, it will basically resolve and take care of the National Security concerns that have been raised. Remember, the Trump Administration is very concerned about having a chinabased company have access to data on millions of u. S. Users who use this very popular app. Oracle is taking several steps. We learned about them today, including full access to the source code, full access to all the updates that they make to the software, they are talking about having an independent board, having a thirdparty be able to audit whether or not the the is compliant with administrations concerns. All kinds of precautions. Also, a promise of creating 25,000 jobs, from content moderation to highlevel engineering at tiktok in the u. S. Bending over backwards to get the deal done. On the other hand, you have, as you noted in your intro, trump talking to reporters and saying to them when he was asked about majority ownership of bytedance, the beijingbased ice dance will still own a majority of tiktok in the u. S. Trumps response to that is, i gott like hit, ive concerns. Remember, bytedance will still have access to their rhythms that make the app so addictive among so many users. So those are couple of the sticking points right now for this deal. Also, you have tension within the administration. You have cheerleaders like stephen mnuchin, secretary of the treasury, who is a big proponent. You have hawks on the other hand, including pompeo, who have concerns and say that the deal as proposed has not fully addressed our National Security concerns. So now the ball is very much with trump. He told reporters this evening in the u. S. That he is going to look at the deal early tomorrow and presumably make a decision soon or after. Haidi this whole thing from the beginning has been so unusual in the way that it has progressed. Andhat extent are we near the finish line, or is this from bytedances perspective just an opening for negotiations, maybe a stunning strategy as they look beyond what could happen politically after november . Tom well, there was a school of thought for a long time that bytedance would do everything it can to basically delay the deal. However, the Trump Administration them a september 20 deadline, which is rapidly approaching. So they dont have the luxury of stringing things along for too long. So what they have done is put together this deal with oracle. Remember,ber microsoft was in the mix early on. Microsoft was rejected bytedance told them, no thank you. We think that had to do with the fact that for microsoft, it was an all or nothing deal. They wanted full ownership and access to the algorithm. Remember, china just a few weeks legislation, right before the weekend a couple of weeks ago, that puts severe limits on the export of intellectual property, particularly in the area of artificial intelligence, which is the secret sauce that bytedance has used to make tiktok so successful. So those limitations really made it difficult for the microsoft deal to get done. Has said,ve bytedance we have chosen oracle, it will be our favored technology partner, all the data will be stored on oracle servers. This is a big boost for oracles cloud business, which is a quickly growing area of software. So there is a lot of things about it that make it appealing to oracle. Shery so who will be on the firing line next . We have done bytedance, we have huawei. Especially after the u. S. Election, will we continue to see this bifurcation of tech . Tom a lot of that is going to depend on who occupies the white house after january, 2021. The Trump Administration has and trade tensions basically a tugofwar over technology with china a central component of his presidency. When you take him out, that doesnt mean biden is going to be soft on china, it doesnt mean that suddenly we are going to go back in time where everything was harmonious, there is pressure on biden to also take a very strong stance on tough on china. You cant look weak on china in the selection. I dont think it means suddenly to geting is going resolved and youre going to see a complete elimination of the attention, but i think a lot depends on what happens on november 3. Haidi our executive director for global technology, tom giles in san francisco. Coming up next, south koreas Justice Minister is under pressure as prosecutors investigate whether she pulled strings to help her son get extended leave from military service. That is next. This is bloomberg. Haidi south koreas Justice Minister is under pressure after prosecutor and rated dutch prosecutors raided the ministry of defense headquarters on suspicion that she helped her son get extended leave from the military service. This is another use of influencetype scandal to an goal for Justice Ministry. The actual particulars of the case may seem small compared to the other scandals we have seen in global politics. The Justice Minister is accused of trying to extend her sons leave in the military when she was chairwoman of the rulingtic party, the party in south korea and the party that president moon jaein a couple of years ago. He is now Justice Minister a big critic of the prosecutorial system. She was trying to reform it and here she is now at the center of this scandal. Shery but there is a reason why this has blown up in south korea, right, there is so much anger over inequality, influence peddling not only by political elites, but economic elites as well, so how big of a repercussion will this have on which a in . Brendan we will see the how bil moone on when jaein in . Brendan we will be getting some tracking poll data today from gallup korea. And we will see if it is taking a bite out of his approval ratings, which had been coming given south koreas success in containing the latest coronavirus outbreak. Shery how much has this to do with the fact that moon jaein has wanted to reform the Justice Ministry over criminal prosecutions . Brendan it is very much entangled in that whole saga. , former Justice Minister, resigned while he was pushing for similar reforms when he was involved in a very influencepedaling allegation. He is under indictment and facing trial. He really became a flashpoint in that debate. Chu tried to come in and reform the executors herself and carry on his work and she has found herself a target of a prosecutorial investigation. It is very much related with this narrative that politicians in south korea operate with more than the regular workingclass, and people want to see that rolled back. They expected moon jaein would do that when he took over three years ago. Shery north asia government editor brendan scott, with the latest on south korea. A quick check of the headlines. This company was dealt another low when chinese regulators issued new lending curbs saying that loans should not exceed a firms net assets. And is the largest player in Online Consumer loans and is prepared what could be the ever. T ipo one of the biggest Music Publishing companies in the world is set to be exploring Strategic Options to raise funds, including a potential sale. Kobold, which represents more than 25,000 songwriters, 600 publishers, and 20,000 independent artists k obalt. The company could be valued as much as 1 billion. Sonys highly anticipated playstation 5 will go on sale november 12 in the u. S. For 500, matching the price of microsofts upcoming xbox series x. The next now says that edition will be an console for playstation, a coup. Icant haidi lets look at how currencies are faring across the region after a fairly stable session when it comes to the bloomberg dollar index. The dollar has been staying off the lows in recent weeks. Fed chair powell saying that the Current Asset Purchase Program is appropriate, casting doubt on whether the quicker than expected recovery in the u. S. Can continue. No major changes expected in terms of stretching the limits of the bojs extraordinary Monetary Policy program. Is seeing aollar bit of downside, slipping below 73 u. S. Cents. This is bloomberg. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. I hope my insurance pays for it. Can you tell me how much this will be . [cashier] 67. Sorry. Wait, have you heard about goodrx . Goodrx finds free coupons to help you save up to 80 on your prescriptions. Wow, i had no idea. [announcer] goodrx, stop paying too much for your prescriptions. Jason we we do have some ,reaking news, export numbers previousbound from the month of march, better than expectations with the rise of 2. 2 from the prior 1. 2 . , but sodomestic exports much better than expectations. Certainly picking up that momentum from 6 . Talking about electronics exports, so we really seen those export numbers come down. Thee resilient despite lockdown as well as regional headwinds when it comes to demand size. Those are very encouraging pictures were out of singapore. Lets get the Market Reaction from hong kong. Sophie its a cautious mood here in asia across the region losses being led by the kospi losing. 9 with chip stocks think the most on the benchmark. Over in sydney were seeing minors under pressure with iron ore prices continuing to decline in singapore. Overall, asian stocks stall stalling after an advance. I want to highlight the topics banks index which is edging slightly higher this morning on the rise we saw in u. S. Steel on the feds dovish message. Toyll decide today whether spin out the battery business. Australia, the biggest jump since march come as a Company Confirms it is in talks with potential investors for a and alibaba portal, may be looking to invest. Aussies check in on the dollar, below 73 after four day advance. Along with the kiwi dollar is receiving the greenback gain ground. Offshore stalling after a four day advance. Strategist are expecting more offs with the pboc holding monetary easing. Sherry all seeing to leave the interestrate benchmarks unchanged. Alicia, great to have you back. Is this the right time for all of these global Central Banks to pause and take a breath and assess how much theyve done so far and perhaps give the bigger part of the burden now to the fiscal side of things . Right. Are absolutely we know that indonesias growth has been hovering around 5 . [indiscernible] , thats one hand differentd there are reasons around the boj. [indiscernible] geti were going to try to back to you to get a better , hopefullyction youll be rejoining a shortly. Minerdmeantime, scott says the fed pled plans to keep rates lower, saying the markets are price to remain on hold for at least five more years. The chairman is going to have a lot of pressure on him to actuallyat will trigger a rate increase. Coming into this, the way the market was priced, we are basically priced for virtually no increase for the next five years. I was a little bit surprised, because im a little bit more on the bearish side of this, that they would be a strong in their commitment for 2023, but the market is clearly priced for that, and they dont want to disappoint the market, because the last thing they want to see right now is for Interest Rates to begin to rise, especially 10 year notes, which are an important benchmark to price corporate debt off of. Im interested in your perspective from will we ever see in overshoot on the 2 level and the 10 year breakeven . Scott caroline, its really interesting, i think that the market may ultimately be surprised. Its a sign that inflation could come back faster and harder than anyone is expecting. I think one of the important things about how that would happen is that the number of zombie companies, it was pointed out in a Research Piece i Deutsche Bank, has now reached about 20 of the market. These are companies that really should be allowed to go out of business, but one of the things about companies that should fail or be restructured that dont fail is that they begin to soome very unproductive, and if companies, if we suddenly see it takes more labor input or it takes additional demands on resources, you could start to ae pressure there, but thats speculation. I think the first order effect is this will drive asset Prices Higher what we might have a setback here in stocks over the course of the next month or so, i think we should generally expect to see risk assets go up in price and Treasury Bonds to even go down in yield. In with something thats quite interesting, there was this question about whether anybody in the fed would predict inflation above 2 in the long run, and the consensus is no, it still 2 , but there are several people, it appears, who have forecast inflation above 2 starting in 2021. Is the first time weve seen anybody do that, but the range now runs from 1. 3 up to 2. 4 for 2021, and 2022, the range 2. 1 again2. 3 and in 2023. Which in an interesting way either suggest that elation dynamics are going to change over those years, or it doesnt square with the idea that you are not going to raise rates, because how do you get inflation down over those two years is not clear. We dont know how many people are making these forecasts, but thats the range of forecast now. Things, one are two is, we had such a deflationary shock with covid and the lockdowns, now we are kind of getting a bounceback, and as people or retailers have had to liquidate begin been tories, they were very cautious in ordering for the christmas season. I think we will see further pressure on inflation over the course of the year. That doesnt necessarily mean its a secular rise, but it means a shortterm increase. Turn to our conversation with alicia, thanks so much for hanging in there. You were just telling us how perhaps it is time for Central Banks to pause on Monetary Policy. Were expecting bank of indonesia to hold steady. What about the bank of japan . Its not like were expecting anything huge out of the boj, but we do have a new Prime Minister. Exactly why i dont expect anymore. If theres any outgo out of the three that we can see is going hes introduced Carbon Control and many others have followed a followed. So why would you change that . I think its a call to see how expansion works. Were not calling for the boj to do anything at this point in time. Haidi the question really being answered about centralbank policy this point, both from the Market Reaction of the fed commentary on limited expectations of what we get from the boj today. Right, its about time for balancing. And i think everybody is ready to accommodate inflation because we know its going to be temporary. Haidi i wanted to get your views on chinas new deal circulation policy. What are the expectations for , after beingnd clearly focused on Domestic National champions . Alicia i would call it a metastatic concept. The proof of the pudding that its not only rebalancing to , from 2008 itd was a way to expand to the world that china wanted to increase surpluswith a trade because it didnt want to rely on domestic demand. Its quite different. Its all about reducing chinas dependence on imports, and in particular, high tech imports and valueadded imports because can now substitute those imports. So its a very different concept. Its all about selfreliance and not importing from the rest of the world. To have you. Great coming up next, its been the best quarter ever for the yuan. We will discuss that, just ahead. This is bloomberg. This is bloomberg daybreak asia. Bloomberg has learned that oracles offer for tiktok remain short of answering National Security concerns. However we understand oracle will get full access to tiktoks source code and updates to make sure there are no backdoors to access data. The deal remains on the table ahead of the deadline. President trump expects a briefing thursday morning u. S. Time. Significant errors in government twosight are linked to fatal crashes of the 737 max. The245 page report provides most scathing account so far of the miscalculations that led to 346 deaths in the grounding of boeings bestselling jet. It makes the case for broad changes in the faas oversight of the entire industry. A senior citigroup i. T. Manager has been put on paid leave pending an internal investigation after he was identified as running the most prominent website dedicated to the qanon conspiracy theory. Jason going this was named last week as running the website and earning over 300,000 dollars a month on a crowd funded patron site. Citigroup said employees are required to seek approval for outside business activities. In a new investigation into employee transfers of more than a billion dollars at its casino in singapore. The loft for law firm was appointed after thirdparty transfers of gamblers money. The doj is also investigating a suit alleging 7 million being transferred without his consent. 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. Back over to you. Haidi its been the best quarter ever for the yuan so for so far. Heading toward the largest quarterly rally on record making it the best currency in asia. And beijing seems to be in no rush to rein in those gains. Is banks on the dollar weakness . Quite a bit. You got it disconnect between the fed policy and the pboc policy. The fed is in an ultra dovish mood, last night saying rates are and hold until 2023. , whichothers, the pboc is relatively hawkish in comparison, you can see that in the shape of the yuan Interest Rates curve. Particularly in the short end. Its almost a carry trade from being long on the yuan. You earn additional amounts of interest to hold it. So thats how were looking in that you want space, not to mention that all the economic that is much better from china since the collapse in the Second Quarter of their coming out of it much quicker than the united states. So you put those two factors together and is quite easy to draw a picture where the yuan is in a much more favorable position then the u. S. Dollar. Shery a few years ago, authorities would not have allowed the strength in the you want if it could hurt exporters. What has changed now and minimal authority start to become concerned . Mark theres probably some expediency in the fact that were approaching the u. S. Election, so there probably happy to keep quiet and not draw attention from that point of view. On af you look at the yuan wider basket, is not as strong as it appears to be, just being against the u. S. Dollar. The basket is only just coming off the low levels which we saw at the beginning of the year. In that respect, particularly because of help from the euro, do you want is not that strong on a wider basis, so there is quite a long way to go before the pboc may be concerned that on a scale again several currency, it does look like a big basket, before it decides whether the yuan is very strong are very weak. On that basis there is a long way for the you want to go before the pboc would be concerned. They might start to think that the pace is getting a little hot. ,o you might see mild protest might start to adjust the daily peaks slightly to try to reduce the pace of you on strength. In terms of the big picture, at this stage i wouldnt be too worried about it. Shery great having you, mark come in singapore. Get a roundup of the stories you need to know to get your day going in todays edition of daybreak. Thecan read up on all Central Bank Decisions we have coming up. This is bloomberg. Haidi a quick check of the latest business flash headlines. Jp morgan is no longer allowing staff to take over to work as a work expense. Are the banks workers planning to resume working in offices in new york and london. Seniors are reached ricard to return next week. Plan muchnks bank has been shedding staff and about 5000 employees are set to occupy the new u. S. Headquarters in 2021. Amazon is planning to open 1000 more delivery hubs in cities and suburbs across the u. S. The facilities will eventually number 1500 and bring products closer to customers, making shopping online as fast as running to the store. Facebook advertising is back, concerns about its not combating hate speech or returning. Kim kardashian west urging her followers to stop hate on facebook. Francine Francine Lacqua that the accusation is unfair. To see in thele recent report that was published tofter getting it down something that no one ever gets to see, which is exactly what we want. It sometimes felt that perhaps we profit from having hate speech on our platform. We dont. It shows how seriously we take the issue. Is Kim Kardashian west actually boycotting . Usually its because you finally disagree. We dont disagree. We absolutely share the same views and aims, that we dont want hate speech on our platform. Weve come a huge way in terms of how we take our responsibility seriously about getting it off the dashboard. Talking to different civil rights organizations and we confirm that were not doing a very good job. Evaluation and said that actually facebook, of all the platforms, takes it down the quickest. Notagain, as i said, were satisfied. We know there is more we need to do to make sure we get it off the platform. A lot of the advertisers have come back, because they can see that were coming together, really listening. A number of advertisers have come together, one organization has announced recently how they are defining hate speech, and we are working through that organization to make sure we address the concerns of advertisers. What sponsor ability to Mental Health suits social media platforms have during lockdown . Platform providing a for people to be able to connect and communicate with one another. I dont know about you, but im incredibly grateful that i was whento jump on instagram my parents were living in and chester and to be able to reach my friends and family more. About someng difficult areas, but the vast majority people that are coming on the platforms every are coming on because theyre able to connect with their friends, andr families, businesses, thats part of the service we are providing. I know a lot of the regulators are looking at why can facebook just not keep the data in the country where the users are . This gets to the nature of when it comes to a social if weplatform like ours, it would haveaph, to reside in both places. One of the things we have at the moment, ways in which we transfer data freely across the atlantic under different rules the ftclations such as will continue to operate using that. We handed over to Bloomberg Markets china open, heres a quick check and how markets are trading at the moment. We are seeing japanese stocks down. 5 . We are awaiting the boj policy decision, not much change expected there, but of course we are watching it closely, it would have a new cabinet with japans new Prime Minister. The kospi also losing ground ahead of those Central Bank Decisions. Coming up, Quadratic Capital Management announcing major takeaways from the feds new Forward Guidance and where to look for opportunities. 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