Level deaths are approaching one million with record chain record cases in france and the u. K. Tiktoks band is due to take effect on monday ban is due to take effect on monday. Shery u. S. Futures coming in at. 2 higher after fluctuations. Investors were weighing optimism over a stimulus package over rising covid19 infections. We have the s p 500 up. 3 . Hitby utilities, they session highs with new rounds of the economic stimulus measures. We had strong housing numbers. Trip. Com seeing thirdquarter revenue down about 47 to 52 . The forecast is not great when it comes to trip. Com. Yuan. Coming in at 1. 93 a little bit lower than expected. This as we continue to watch the markets, oil coming in. 25 lower. We saw oil climbing to the highest stimulus hopes, but there were doubts over rebounding consumption as the pandemic cases continued to climb. Haidi. Europethat second wave and the u. K. , one of the risks weighing on the investments at the moment. For the final friday session in nature, we are seeing modest gains when it comes to the future session. Ing flat at the moment. Because costing these futures, we are seeing a modest open when it gets to the start of cash trading as well. We will be focusing more on the stimulus deal in the u. S. As well as any development of the vaccine on the virus front as well. The gross watching index in australia into a high relative to the broader index with a 3 jump this week into positive territory. We will look at if that trend, the rotation will continue given that we have seen australian the stocks stuck in a narrow range for the past two months. Lets get more on the market. Andrew smith joins us now. With the latest developments in the s p 500, pretty much flat for the year with the gains we have seen in 2020, how much of a danger is it that we are going to see a serious lip to the recovery story if the stimulus deal is not done by the end of this year . Andrew glad to be here. Recent volatility really was to be expected. We see on top of the covid uncertainty with the second wave of cases, the lack of the monetary stimulus or fiscal stimulus coming online, the political uncertainty, geopolitical landscape. It is important to note that the massive liquidity that came into play in march with lower Interest Rates, we have seen the oecd with 30 countries, the breath of recovery starting to unfold. The risk asset spectrum will not have that same catastrophic event that we saw in march. Haidi the overnight session in the u. S. Was ruled by investors what issed about following. One of the threats that is picking up this week was the comment about the chance that the fed would raise rates before the 2 inflation is averaged over any period of time. Is that a real risk event for markets that we can see policies tightening up at the end of this year . Andrew that is one of the biggest risk events. We are getting a lot of uncertainty regarding this new Monetary Policy framework. We have some commitments saying that they will not raise rates until 2023, but then we hear earlier today that we could potentially have raises earlier than expected, not allowing the inflation target run hotter than the longterm average. That creates Interest Rate volatility and it goes underappreciated, because once it spikes, where we are with equities is we get a repricing very quickly on that spectrum. Have breaking news that china will be included in the global bond index. It is a much awaited decision because they had rejected chinese bonds. They were going to be included in the Government Bond index, this will be an annual review happening and ftse russell saying that china will be included in the global bond being as china is reclassified from market accessibility level one to level two. This offering investors more ability to invest in chinese bonds. Lets turn back to andrew. Given the surge for yield and where you anywhere, going and where using opportunities where are you seeing opportunities . Story goingrecovery on in china and taiwan, the income potential is attractive right now. Is Economic Activity continuing to accelerate. We believe that will lead to a Global Supply chain that will inifest in the United States 2021. We believe trades are taking advantage of this volatility in the economic beneficiaries such as industrials. They have that high correlation to the economic recovery story. We just need to get this political uncertainty, the stimulus, hopefully a fiscal paycheck, and have the uncertainty out net out. Shery given low Interest Rates, we saw u. S. Home sales jumping very strong numbers, how deeply that how do you play that . That will believe persist on the shorter end of the curve, but do think there is a potential for a higher than expected increases in longterm Interest Rates. We are looking for taxable immunity that is higher than in the treasury market. Haidi andrew smith there, thank you. Lets turn to Karina Mitchell for the first word headlines. Karina japan is maintaining its assessment of the economy saying that conditions remain tough, despite signs of a pickup from the coronavirus. The report kept the same language for a Third Straight month while saying that it has been proven in four of 14 categories. Meanwhile, the u. K. Government issued a similar similarly gloomy forecast. Chancellor the chancellor announced a program to subsidize wages for parttime workers to under lockdown roles and to cut sales taxes for longer. Unemployment is bound to rise as the u. K. Economy adjusts. It is now clear as the Prime Minister and our scientific advisors have said, for at least the next six months, the virus and restrictions are going to be a fact of our lives. Our economy is now likely to undergo a more permanent adjustment. Administrationmp has been ordered to delay its ban on tiktok. The judge gave the administration until 2 30 to a pause. The Administration Says that more than a month ago, and is late to filing a new injunction. Vote him out vote him out vote him out karina President Trump was met i hecklers as he and the first lady paid respects to Ruth Bader Ginsburg on capitol hill. Booing after he arrived, corrupted. He will announce his pick before saturday. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in over 120 countries. I am Karina Mitchell. This is bloomberg. Shery. Recapping those breaking news, we had a couple of minutes ago, ftse russell becoming the last of the three to add chinese debt into their bond index. Ftse russell saying that china will be included into the global bond index coming as analysts had expected this move to happen. This will be the highest level of accessibility. Keeping malaysia on watch for bond index exclusion, but when it comes to china, they will be included in the global bond index. Rising andna is integration into the global bond market as well. At 10 40ave more later sydney time. If you are watching in hong kong, that is 8 40 and a. M. 40 that was actually slightly narrower than what the average estimate on bloomberg had expected, we did get or details on when it comes to thirdquarter revenues. We saw a contraction of 47 for trip. Com to a contraction of just over 50 . Estimated loss of 3. 11 yuan. Slightly better than expectations of 2. 37 yuan there. We expect to see a bottoming out in the Second Quarter from the impacts of covid19 on trip. Com, as we see chinese consumption and mystic travel and activity and Domestic Travel and activity resume. This is bloomberg. The world will officially log one Million Deaths in the next few days, but the real tally might be double that. France and the u. K. Announced its highest numbers since the beginning of the pandemic and the vaccine raise charges forward. Michelle, the death toll continuing to rise and new records we are seeing in the u. K. And france. There are new records in the u. K. And france and we know that thats our trailing indicator from coronavirus cases. We are bracing to hit the one million death mark from this novel virus and we know that it is actually likely much higher, as many as 3 Million Deaths we will expect to see from this, and that pace will continue as the virus continues to swirl. Haidi we see the vaccine raise heating up again. 10,000 patients in its late stage trials in the u. K. Do we see a front runner emerging . Where do we go from this phase of Clinical Trials . Consideredither is to be the leader at this point. The fact that novavax is starting their large phase three trials is good news because they are using a different approach. Will beilds trials giving their vaccine along with a flu vaccine, so we will see how that combination is going to play out. They are tracking patients, as well. We are also hearing operation warp speed is funding additional trials, working in different ways. We are going to have a lot of different approaches when it comes to coronavirus, hopefully. Haidi Michelle Cortez with the latest on the vaccine raise in minneapolis. Johnson johnson has started its retests. Officerf scientific spoke with bloomberg about the beginning of the trial nearly two months after front runners. To includeoing 60,000 people in the study and it will be run in the u. S. And south america. People, diverse people, old and young, as well as africanamericans and latinos who are more at risk. We have been able to show to our research and clinical testing earlier that the single dose will be sufficient to protect people. We will study the single dose in the next few months. You mentioned the elderly and africanamericans and latinos. Do you always take that into account, do you over index for those who are most vulnerable . Yes, we are doing that. We do that to find out where the u. S. We can find regions of very high transmission, but also population groups which are over africanamericans, latino, and elderly, so we make sure that the risk groups are in the efficacy study. David your approach is different from others as i understand it. But as i understand it, a version of the cold virus. What advantage does that give you . Is it if occult to store this vaccine difficult to store this vaccine . Toffel we are doing a andy in over 200,000 people it has been approved. It carries a piece of the germanic terrio genetic material of covid and the body produces a protein, which then generates immunity. Months,able for three it can be kept for a long time degrees, then go into the field. It is a single dose, and hopef ully available on a large scale. What is most important is that this becomes effective 15 days after the first injections. That is important for the pandemic because it protects you Must Immediately almost immediately. When you have an outbreak somewhere, you want to be able to protect people fast. Singledose fast protection ofid do you have any sense a timeline about how long it will take to know whether it is effective as well as safe or not, or is that unpredictable . Stoffels it is unpredictable, but we will have havet up with people we what we want to see. We want to first absolutely learn whether it is efficacious, but also if it is safe. We will not stop the study until we have enough data to be sure ourselves to talk with the regulators to be able to use it. Be earlyt that will next year. We are known early september. Four or five months will be getting us to that point. Haidi the latest tiktok twist sees a friday deadline for the ban on the app. That is next. This is bloomberg. Tiktok owner bytedance is working on approvals from authorities for the sales of its u. S. Assets as demanded by President Trump. The latest from our senior tech reporter. The twists and turns continue to emerge. We are in a Holding Pattern now. It is happening now is we are waiting on a lot of stakeholders. We are waiting for the Trump Administration to file Something Back to the u. S. Courts in bytedances efforts to stop this ban, which will take effect on sunday. We are waiting for the Chinese Government to approve bytedance to approve the deal on their end, and that is not 100 for sure because there have been editorials in the media saying that they are calling this deal a sham or bad for bytedance. Breathe is holding their every siegel day single day. We are waiting for a final decision here. Shery do we know what is happening with the actual deal . Shelly negotiations continue with the people in the u. S. Government. The committee involved in hammering out the details, we they hadnally not been involved before. Did you get the sense we do get the sense that we are moving toward something but we are just not there yet. There, lets get a check on the latest business headlines. Tiktok is pushing ahead to allow a cloud Stream Service and by next june. Now shery testing has began for technology to to launch. Nicola nosedived after celebrating shares at 80 since june, and the company is under more pressure after teslas battery announcement increases scrutiny. Resignedtive chairman with a loss of more than 50 this week alone. Haidi it is the end of the road for Harley Davidson as part of wider cutbacks announced on thursday. It is a further blow to the hopes of attracting foreign manufacturers, and indys worst economic downturn in decades. India ot expand in we have more news from ftse russell and its revision saying will remains index in the stock index. Ftse changing argentinas status to unclassified in its doc theew, earlier we heard highly anticipated decision that chinas bonds will be added to the ftses global bond index. That set the start in october 2021. Giving Foreign Investors or new channel to invest in chinese bonds, which had been beaten down this year. Ahead continuing to look to implications of the market as both sides of the aisle in the u. S. Are pushing for fiscal stimulus and that deal could be done. We look in the meantime at why officials are holding back on stimulus funds. And why that will pose unnecessary risk to the u. S. Economy. Coming up later on, we have big guests including Goldman Sachs of japan kathy matsui, talking about how women under the new japanese Prime Minister this is bloomberg. Look here, its your very own allinone Entertainment 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. Muchdont there is as about a new fiscal package as there might have been in july. Some of the first speakers we heard from this week on the need for fiscal stimulus measures. They have addressed several other key topics as well. Topping the list has been the need for mores fiscal stimulus measures to bolster the economy. Kathleen hays is here. Federal officials are starting to sound like a broken record. Thats because they are playing a tune that they dont want anyone to mess especially in congress. Yes, so many speakers. Every day, we had a few if not many and everybody but one already much that we have heard from said we cant continue to have a recovery if we dont continue to get more stimulus. Thats the bottom line. Charles evans of the chicago fed said they were assuming 1 trillion more of stimulus in his forecast for a good employment market. Today, he said not providing more stimulus poses serious and unnecessary risk to the economy. That is clearly a warning to elected officials. A representative from the dallas forecasthis focus is for percent by the end of the year. That hinges on virus control and also more stimulus. The chicago fed says it is very much needed given the deep hole the economy is climbing out of. Look at the latest on jobless claims. This sums up what people are worried about. Particular, fed policymakers. Jobless claims have made an improvement, but that improvement has stalled out. The yellow line is 893,000 but that is a slight increase from the week before. Before that, you see continuing claims. At the peak, millions of people unemployed for four weeks or more. It is still over 12 million. We have to get those people back to work. The president of the st. Louis fed told us on monday that he thinks that now compared to earlier in the year, there is enough stimulus to keep the economy going. Andre seeing improvement the economy is not faring is not faring as poorly in the second half as people thought. All fed speakers are agreeing that we have to see inflation over 2 before we hike rates. Let me and with racial inequality. The need to do more. The first lacked man to become president of the Federal Reserve bank, the president of the atlanta fed said today that racism is dragging down the economy and banks in particular by repairing their use of black people who could not borrow over the years. Those are the key to topics that the fed is clear on. Made are reporting that be first in line as a woman to be u. S. Treasury secretary. Its not the first time she was thinking she might get this job. Lets start with the fact that she is at the top of joe bidens list and it would be a great move for him. He has a historic move if he gets the first female treasury secretary. On top of that, he needs someone who bankers feel comfortable with. You have to keep the progressive happy. Looks get someone who cozy to wall street, many people consider her wellplaced for this job. Someone who knows her says she told them that she would prefer the fed chair job if she could get it, but she is not going to turn down this job. In Hillary Clinton was running for president , a lot of people thou