Call for urgent action. President trump enters the conversation, indicating he may now support a wider stimulus bill. Debates joe biden refuses to push back his next meeting with the president. The white house rules out a virtual clash due to covid19. We have an update from President Trumps physician, dr. Sean conley, about the president s covid19 treatment, saying that the president has been responding extremely well, that his exam has remained stable while at home. President trump has completed the course of therapy for covid, saying the president can return safely to Public Engagements on saturday. The president was just released from hospital on monday evening and his health had risen controversy given the white house was saying the timing of President Trumps last negative test was regarded as private. We are finally getting an update on the president s health and dr. Sean conley saying the president can return to Public Engagement on saturday. Lets turn to the markets with Sophie Kamaruddin in hong kong. We have the open of markets in sydney. The asx 200 is holding above 6000. The Digital Payments platform has been the best performer this week. We are seeing the likes of fuel refineries under pressure over the course of these two days along with gold miners big new crest. We are keeping an eye on that space given industry consolidation forthcoming. Looking to push towards 1900. Saxo bank says gold will remain trading range bound before the u. S. Election. Bullion meets more of a catalyst when it comes to stimulus. Switching out the board to see what we are seeing with u. S. Futures, we could see just drifting moves this morning in asia, s p eminis adding. 5 , and we are looking for the nikkei to perhaps look to a race its yeartodate losses after rallying 40 from the march low. The best performer today on the nikkei 225 up more than 100 , and today of course, big on the calendar. Chinas markets reopened later this morning. Haidi. On to our top story, the stalemate over stimulus drags on as nancy pelosi pushes back on a piecemeal approach. She refuses to accept help for the airlines without a bigger bill being agreed. The airline workers. There is legislation that we had in the cares act, which we hope that we could continue for another six months or so. Oft expired at the end september. But wedo that separately cannot do it unless there is a big bill. It could be part of the big bill or it could be separate from the big bill from a timing standpoint. The latest onet those stimulus negotiations and much more from government congressional reporter Emily Wilkins, who joins us from washington. The white house signaling openness to something bigger than the package and staying on the white house, we just got those breaking lines that the president can actually return to Public Engagements on saturday, according to his doctor. Let me start there because this is the latest that we got out of the white house and its really interesting because the president has only announced that he actually had covid19 last week. He was just released from hospital on monday and hes already returning to public life. What do you know about the timeline of his disease and his health . The white house has not been completely forthcoming with a lot of details surrounding the president getting the coronavirus. It was a bloomberg reporter who initially started breaking the story that a close aide had gotten coronavirus. At this point last week, we did not know that trump had it. They were sort of being a little cagey today about when he last tested negative, details and that regard. Throughout the white house, they have really tried to project an image of strength that the president is ready to go back to work. They released photos at walter reed that purported to show him working. There was his motorcade. Trump is eager to get back out. We are less than a month away from election day. He sees any time off the trail as being detrimental to what will happen on november 3. Of the weeksms leading up to the election, there is still a great deal of uncertainty as to what the next president ial debate is not to look like. Is it going to be virtual . We know the two sides are far apart on even if it will go ahead. Emily at this point, the president ial Debate Commission has said the next debate, october 15, would need to be virtual. Trump said that he was not going to waste my time on a virtual debate. The Trump Campaign asked to move the second debate back a week. Thatiden campaign rejected plan. Trump says he will hold a rally on october 15 and biden is going to be participating in a town hall that will be televised that evening. Whether we get back to the debate format remains to be seen as well as what kind winds up happening. At this point, it does not seem like a second debate is in the books at this point. Shery it would provide a boost to president Trumps Campaign if we did see a stimulus package. Where are we on that regard . Bounced backhas from the position he was out yesterday. He is now calling for a stimulus package. Nancy pelosi has said that if we are going to move airlines they are going to move a more comprehensive package as well. She spoke today with steve mnuchin, the white houses may negotiator on this, but once again, pelosi admonition, they have been talking for a while on this. We have not seen a lot of compromise yet. We have not seen them get to a number. We have not seen them compromise on different parts of the language. There is just a question on timing. They still have to write the bill and it has to go through the process being passed by both houses, both chambers, rather. That is something that would be taking a good bit of time. Its very unclear whether we will get a stimulus package at this point before the election. Shery Emily Wilkins in washington. Lets turn to Karina Mitchell for the first word headlines. Karina. [no audio] exceeded its authority. A parallel effort by the wechatnt to block . 10 messaging service has also been halted in court. The administration appealed that ruling last week. A check on gaming activity in macau says Gross Revenue was down 76 from a year ago. Bernstein looked at casino activity in the first seven days of this month and says the results are disappointing but not unexpected. Was gamingy macau revenue falling well over 70 this whole year before a robust recovery through 2021. The mood among merchants in japan rose last month to its least pessimistic and more than two years, adding signs that the recovery is taking root. Store managers, taxi drivers, and the others rose to its highest level since april 2018. News will be welcomed for Yoshihide Suga and one of his key advisors says he may call an early election next year. Malaysian Opposition Leader says he will meet the king next week to offer proof he has enough support from lawmakers to form a government last month. He said he has the numbers to topple the prime minister, raising speculation he may demand an election. , saying hethat remains the legitimate p. M. 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. Haidi come over to you. Haidi, over to you. Almosttrumps polls are back to where they were in the 2016 campaign. How a trump or Biden Victory could affect equities in china. Why a former ceo has moved away from republicans to back the Bidenharris Campaign. He joins us to discuss diversity in the race for the white house. This is bloomberg. As we approach the u. S. Election, investors are focusing on what impact a trump or Biden Victory could have. Joining us now is the portfolio manager, louis lau. Great to have you with us. This chart on the bloomberg right now showing our viewers the betting odds and we are seeing further divergence with joe biden taking an even bigger lead. What would this mean in terms of trade policy which seems to be most consequential for asian markets, especially the chinese economy which continues to rebound . Is verynk it interesting, when you look at the biden plan, it does take a different approach to just tariffs. I think it talks about bringing back american jobs. It talks about creating jobs in green energy. They also talk about the increase in local content rules where buying American Goods might be a higher proportion required of companies, so i think theres several things. One, it could impact countries like mexico or south korea that are very dependent on exports to the u. S. In terms of china, i think biden has not seemed to be having a sanction specific tech companies. It might not be repeated. I think we see incremental positive for trade with china. Does not mean we are going to go back to pre2016. The other thing biden would do is likely to get some support from europe and japan collectively to contain china. Shery right now, we continue to see the economical coverage take hold in the Chinese Markets. What does this mean in terms of valuation levels . Have the markets priced in the rebound already . Are we still finding some discounts . Louis yes, if you look at what is happening or has happened in the golden week, Domestic Travel is around 79 of what was in 2019, so i think in terms of, you know, travel, in terms of, you know, its more discretionary items. Its almost back to normal. I still see some discounts and some of the travel stocks, especially to do with international travel. There is a lot of discount on durable goods such as household appliances, auto stocks in china still looking expensive, and macau has not really recovered. There are definitely pockets of Chinese Consumer companies that still trade at quite attractive discounts. On the other hand, the Ecommerce Companies have obviously done very well. This will continue as the theme for the next five years, increasing online sales penetration. It might take a break a little bit if we get some of the cyclical recovery. Definitely some of the consumer durables and travel. Theres still some discount there. Haidi would you maintain your exposure to chinese tech even with these concerns over potentially more implications for the u. S. Side . Louis yes, i think if you look at some of the Company Specific sanctions, the latest is possible restrictions on ant financial payments businesses in the u. S. , theres not much the Trump Administration can do because for these payment companies, more than 95 of revenues come from asia. If anything, if they were to expand outside of china, it will be Southeast Asia as well as other emerging markets. I dont think there will have it will have an immediate impact. I dont think we need to take down the technology exposure. If we have a biden win and some of the new slow and restrictions on huawei lesson, those companies could stage a recovery. I would not at this point take down the chinese tech exposure materially. Haidi if heavy tech weightings will continue to drive upside in markets, where else do you see opportunities within asia . I know that taiwan is not exactly supercheap at the moment, but do you still find opportunities in valuations compelling in that market . Louis taiwan, i would put in the middle of the pack in terms of emerging market valuations, maybe towards the less cheap markets but you can still find, you know, companies in the smartphone supply chain that have been put off by scares on huawei restrictions. Manufacturers are still interesting. Semiconductors with a longterm theme. We dont see china being selfsufficient in semiconductors for the next five years even longer. Theres hardware makers that are still continuing to benefit from this backlog of purchases for pcs and laptops. Lastly, some Companies ProvidingCloud Services could also continue to enjoy a 15 attorney percent growth rate. Plenty of opportunities in taiwan. Shery let me ask you something about the macro environment. It has all been about the centralbank action, fiscal support as well. A spoke to Robert Kaplan just little bit earlier. Take a listen first. Robert to see us doing more in that area because i do not see the benefits. I could see how it would further add fuel to the financial markets. I am more skeptical how much it would help the real economy. What do we know at this point about how supportive Central Banks will remain, not only here in the u. S. , but also across asia . And what is the risk of withdrawing too soon for the markets . Know, i think the fed continues to be dovish, and i think they have signaled increased tolerance for inflation. I would be a little careful because, at the end of the pandemic, i think its likely to see theres likely to be a huge increase in inflation coming from all the stimulus that we have had so i think it will be interesting if the fed keeps the statement that they are going to tolerate slightly higher inflation Going Forward. I think it could be dangerous for the value of the u. S. Dollar and what it means as a reserve currency. And then elsewhere, we actually see china having a very prudent Interest Rate policy. It is still very normal. The policy rate is still around 3 . We dont see huge easing there. And then there have been collective Central Banks and emerging markets like indonesia and brazil that have started to buy government bonds with the centralbank money supply which is may be a risk for some of those currencies. Its going to continue to be accommodative. At some point, all of that will have to be reined back. Have youally great to as always, louis lau. Analysiset more market ahead as chinas mainland markets reopen after its oneweek golden week holiday. Plus, a cio joins us from shanghai later. Coming up next, Morgan Stanleys acquisition. We hear from the ceo about the deal to buy the company as well as his vision for the bank. This is bloomberg. Haidi Morgan Stanley has struck a second megadeal in 10 months, acquiring an asset manager for billion dollars. He has driven a dealmaking blitz that transformed the firm from a wall street specialist into a major player in the Money Management space. He told bloomberg how the deal could reshape Morgan Stanley in the years to come. This has been a 10 year strategy to take what is an extraordinary Investment Banking and trading business, putting that up in terms of the Risk Management business and take away the prop trading, use that capital more effectively, and it is doing on the believably well. Unbelievably well. We have to build up the Wealth Management business, which gave us a digital platform. Now, we are doing it on the Asset Management side. Now, excitingly, for 2030, specifically, you will find a very stable, faster growing, very feebased institution, wellcapitalized strong liquidity. Explain to me the strategy. Are you making Morgan Stanley for the masses . Are you trying to be all things to everybody now that you have added this large brokerage . James not at all. We have done many deals since i have been ceo. We sold oil storage and Oil Transportation businesses, servicing businesses, european and so on and so on. We have been reshaping the portfolio. This is about managing capital for individuals, institutions, and governments around the world. That is what we do. Being in the Asset Management space and the trading space is all consistent, all part of their process of originating, managing, and distributing capital. ,e are a more focused company the most of our peer set we deal with. This has been an expensive deal but at the end of the day, it is what this deal will deliver to shareholders in the future. It comes down to profit about margin. How do you explain the economics to them in the longer term . James i met a lot of people who want to buy Great Companies cheaply and end up not buying anything. If you are going to buy great assets they have been around for 90 years. Huge talent. Perfectly complementary businesses. Very little dislocation. Highgrowth, great businesses, with it has been growing very fast. This was a nobrainer. Do ifs what you have to you want to buy highquality businesses and they came to us. They came to be part of the Morgan Stanley business. Mildly creative day one. ,t used up 100 basis points which is our core regulatory capital ratio. Pointsted 100 business this year. We are sort of to neutral. Its going to be a terrific deal over the long run. Im not worried about the financials at all. It makes it about 1. 2 trillion at this point. Of wherell a fraction blackrock and vanguard and jp morgan is. How do you compete with those rivals at this point . James they are completely different businesses. Not trying to be the biggest. We are just trying to do you dont do strategy through in view. You do strategy based upon what works and what is important to your institution. Its unbelievable. I dont care that there are others that are bigger. We generate in the returns we need for shareholders. We provide clients the opportunity they need for the best product out there and through th