Unchanged policy. Coming back from the typhoon slower by 116 points. We are talking about hsbc, one of the laggards here, missing out. The largecaps under pressure, 4819 right now. We are looking. When it comes to dollar dynamics, we did see a stronger dollar, which led to a hit. 379 right. 7 now. The china 10 year yield, we just got the pricing on the dollar bonds. Gold taking a retreat. Brent crude Holding Around 42. Tom lets bring you back to the top story in this region. Xi jinping will bring a major policy address later, in the next 20 to 30 minutes or so. Across the border in shenzhen, to talk about an integrated tech corridor to rival silicon valley. Stephen engle is following the story and joins us from hong kong. Steve, what are you looking for in this speech . Stephen i am looking for a better tagline. They are calling this a chinese socialist pilot zone with chinese characteristics. I think the greater bay is the grander scheme. And xily china wants to jinping with a trip south within thehalfhour, to emphasize need for selfreliance. In particular in the next generation of technology. Shenzhen in particular is home to some of the Biggest Tech Companies in china, be it tencent or huawei. There is also the ev manufacturer and others. He is trying to integrate at least nine Major Chinese cities with the more open internationally minded cities like hong kong for capitalraising as well as macau. It is a big endeavor and when they have been pushing for quite some time, to stimulate domestic growth as well as bringing hong kong more into lockstep with the mainland. Saidis what xi jinping yesterday on the theme of selfreliance. War ifs this tech cold you want to call it that, with the United States. Lots of headwinds in the global economy. Selfreliance is important, he says. Wethis time of uncertainty, are seeing changes not seen in a century and we need to set ourselves on a path to Higher Quality selfreliance. This harkens back to what was , where he chopped of the hawks in beijing in the face by pushing reform. Then we did see the opening up of shenzhen and regions to a tsunami of investment and reform. Perhaps he is taking a page from them. Instead of countering the four asian tigers in 1992, he is countering headwinds from the west, in particular, the u. S. As a complementary cog of the greater bay, pearl river delta region. Yvonne we heard from carrie lam. She is in shenzhen this morning at of the speech, saying hong kong does not need to worry about direct competition with shenzhen. How does this fit into the picture now . Hong kong has separate trade and Economic Systems, Legal Systems are different as well. They have an open capital account. Withare more in line Institutional Investors to the ipo pipeline. This would be a Capital Raising center for this greater bay initiative. Hong kong has lost manufacturing long ago when textiles left. Are ports and logistics losing a lot of ground to mainland ports. What do they have . They have finance and banking and an open capital account. They see that as an integral part of the Greater Initiative going forward. There will be challenges. We have seen social and economic challenges the last couple years with the protest movement and now the National Security law. For xi this is a chance jinping to sell that this is the way forward for hong kong people. Be momentsshould away from that speech. Could turn to your bloomberg for more on this. Just setting up to get more commentary and analysis from expert editors at bloomberg. Make sure to check it out lets get the first word news. We have Karina Mitchell in new york. Keptngapores Central Bank Policy unchanged, as expected, with the economy recovering gradually from the worst recession in years. They indicated little change in the foreseeable future. New data shows singapores economy shrank 7 in the Third Quarter from a year earlier, improving from a 13 decline in the june period. Prospects of a new stimulus package in washington dimming with nancy pelosi demanding they changed the most recent offer and Mitch Mcconnell pushing a strategy President Trump already rejected. The speaker says mcconnells proposal is a nonstarter. Adding in the wake of the president s tweet, democrats have more leverage than ever. Faces a slow post virus recovery, though it is offering a less dire view of the recession. They see global gdp shrinking 4. 2 this year, down from 5 in june. It would be the deepest contraction since the Great Depression, with covid19 having killed millions and shut down vast parts of the economy. We have seen advanced economies doing better than emerging and developing economies, excluding china. You are seeing low skilled doing worse in labor markets. We see growing inequality. It will be highly uncertain. Sentiment in australia soared in october a second straight month above 10 gains as progress containing covid19 combined with government stimulus and potential new rba easing. The Consumer Confidence index was almost 12 after an 18 jump in september. That is the highest level since the middle of 2018. Optimist now outnumber pessimists. 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. Tom . Tom getting our viewers up to speed with breaking lines on the australian bank. Itspac consolidating International Operations into three branches. Those are singapore, london and new york. Westpac will exit operations in beijing, shanghai, hong kong, mumbai and jakarta. Westpac yeartodate shares are down 23 . We will bring more if and when we get it. Still no sign of a quick end to the stimulus stalemate in the u. S. We will have the latest on that. Talks plus, investco about equities over bonds despite uncertainty. This is bloomberg. This is bloomberg. Tom welcome back. Lets look at the wide range of issues weighing on markets. Prospects for u. S. Stimulus before next months election are failing, while the dollar had its best day in almost three weeks. Likely to spur haven demand. In asia, investors are keeping an eye on president xis speech from shenzhen, which could be happening any moment now. We expect him to lay out his vision for the greater bay area. Lets bring in david chow, a strategist for that asianpacific. David, a lot to unpack. What are you most squarely focused on as you get a grip on these markets . David i think investors are concerned about the stimulus package in washington. We continue to see the pingpong back in force back and forth between republicans and democrats. What is at stake is the size of the stimulus and what it goes toward. Each side is pandering to its base ahead of the election. The stimulus has become more about politics than economics. That said, i think there will be a stimulus package between now and the end of the year which is what the market is partially discounting. Stimulusare expecting sometime before the end of the year. The election firmly on the horizon as well. The stimulus debate ties into that. There was a sense among investors you might get a blue wave. Seems they are paring back expectations now. What is the market response if you get a senate in the hands of republicans, but a presidency with democrats . David there is definitely a case for that. The risk of a hotly contested election has greatly been diminished and i think the stock markets recent upward trend reflects a likely win for the for biden. Theyis not priced in is could rethink investors of the investment environment, such as higher corporate taxes and more regulation to certain industries. David, the imf talked about china and giving it an endorsement, saying it will be the only economy that is going to see levels higher this year than 2019. I wanted to take a listen to the chief economist about that point. Take a listen first. China is a country this year and next cumulatively will be 10 higher than precovid levels. While everywhere else in the world, they will be lower than precovid levels. You see a stark difference over here. China also has a lot of underlying growth coming into this crisis. They were slowing down, but still a growth rate of over 5 . Forward, they will continue to accumulate higher levels of income. Have them about 1 below their precovid projected path. Based on the growth prospects, do you think china is still a good case to keep a bias in your strategy . How are you seeing it . David sure. We continue to remain positive on both chinas economic rebound from the pandemic as well as a positive bias on chinas equities. I think a few Different Things are going on here. If we look at the september trade data, which came in stronger than expected on both the export and import side, it suggests two things. On the export side, Global Demand continues to be a key driver behind the resilience from covidrelated issues. Most importantly, chinese rebound imports rebounded to a positive 13. 2 last month. Stronger both domestic demand and greater growth. The case in point is the most recent golden week holiday which saw chinese households hit the road and we saw increased spending at retail shops and restaurants. This is important because half of chinese gdp is made up of domestic consumption. So far this year consumption has been negative. Monthlynged as retail numbers in august finally became positive. This will indicate one of the most important cylinders for Chinese Growth Engine is finally started to fire up. This will give the chinese economic engine the boost it needs. The chinese growth cycle should last another two to three quarters. Yvonne we are counting down to president xis speech in shenzhen. We are likely to hear more on the speech on the theme of circulation. Doesnt boost relative attractiveness of chinese tech stocks compared to the u. S. . In the eyes of beijing, they are national champions. In the u. S. , if we see a biden blue wave, we could see these Tech Companies get split and more regulatory risks. We continue to be positive on tech stocks for both china and the u. S. It is possible there could be volatility because of the issues on covid and potential lockdowns. That could benefit tech stocks. That said, we continue to be positive on china because what we are seeing in shenzhen and policy measures announced there, it is an important signal that china continues to celebrate. This will remove some of the bottlenecks that have been hindering chinas reforms, are now being renewed. Chao, thank you for joining us. Coming up, we hear from the imf chief economist, Gita Gopinath. The global recession will not be as bad as first thought. This is bloomberg. This is bloomberg. Yvonne the International MonetaryEconomist Says the path to Global Economic economy is long and uncertain. Chief economist Gita Gopinath is also concerned about global debt and told bloomberg low rates and a possible growth rebound could offer help for nations to ensure their debt load is sustainable. It is uneven across countries. You see advanced economies doing better than emerging and developing economies. [no audio] tom you talk about the effects of this virus being longer. Does that mean the damage is going to be ultimately greater, despite the more shallow trajectory . Gita overall again, this is the worst crisis since the Great Depression and we have a very prolonged recovery. For most countries with the exception of china, they do not recover to 2019 even by the end of 2021. There are regions like latin america where that takes until 2023. This is a permanent loss to input. We have about 28 trillion loss because of this crisis, relative to the prepandemic levels. Long, uneven and highly uncertain a sense. What could stop it . I know the imf is saying, dont worry about debt, governments, just spend to support your economies. That seems to be coming to a halt. Stalled stimulus in the u. S. , and the u. K. , a more targeted furlough. They cannot get the Recovery Fund passed in europe. How do you look at it . Gita the number one thing countries need to do closely together is and the health crisis. The problem is not science. We are getting the first weeks of vaccines and testing, there is just not enough production on the scale required to reach anybody everybody in the world. If that does not happen, we will be living with this crisis for a prolonged recovery. We are asking countries not to prematurely withdraw support. You could be targeted because countries are at different stages of lockdown. You could be much more targeted in terms of how you are providing support. For countries that do not have the finances, they will need international assistance, aid. That is needed to ensure we are not going to knock this economy off of its path for the foreseeable future. The crisis is going to go on for a long time, you made that clear. That levels would be significant as a result of this. How big of a drag will the enormous debt most countries are now going to be carrying be in terms of Economic Growth far into the future . Gita we have debt now projected to be a record high of 100 of global gdp, but this is also at a time when private savings are high and private investment is very weak, which is part of the reason why Interest Rates are low. We expect them to stay that way for the foreseeable future. To the extent Interest Rates stay low and we get a growth rebound in 2 there are many countries021, for whom the debt level will stabilize. This means the window of opportunity to build a fiscal framework to make sure that will be sustainable over the next several years. In some cases that will require cutting back certain expenditures. Also, through greater revenue generation. Cases, making sure corporations pay their fair share of taxes, greater transparency, all of this will be important. We have the breathing space now because of the world we are in, with low Interest Rates. Imf chief economist Gita Gopinath speaking to our colleague, guy johnson. Apple launched of the latest iphone, a device line wall street expects to spur a new cycle of sales growth at a Virtual Event growth. At a Virtual Event, apple shown the new iphone 12. It has a smaller version, called less. Ny, 100 pro and promax versions go as high as 1100. All the new devices support 5g technology. Tencent to double its stake in music before it expires in january. They let a consortium for 10 of musicrlds Biggest Company and a deal that valued universal at more than 25 billion dollars. Tencent and its partners can raise holdings to 20 at the same valuation before january 15. Inroup making progress winning the approvals needed for its ipo in shanghai and hong kong, though it has no definitive timeline for agreement. Sources tell us, boc international, joint book runners for the major listing. Jp morgan and Morgan Stanley are acting as sponsors for the share sale in hong kong. Recordl ipo may raise a 35 billion. Yvonne big numbers in the markets. We take a look at evergrande. We continue to watch disappointment from the market on this share placement. Byy had to cut their sales about half what they were expecting, down from 15 . Hsbc, one of the biggest losers in the hang seng today. And tencent reaching the record of theid the launch iphones league of legends game. For tencent. Alibaba still on progress for their pio. We are watching securities. Scrapping merger plans. Lower for westpac as well, consolidating its International Operations. This is bloomberg. S. This is bloomberg. Is 10 29 p. M. In new york and d. C. And here are your first part headlines. The imf is slashing its outlook for india even further, saying it faces the biggest contraction among imaging major emerging markets. Far worse than the 4. 5 decline the imf saw in june. India imposed the worlds Biggest National lockdown in march. Bank of indonesia held rates as expected as it focuses on debt purchases to help support the weakening economy. The seven a reverse rate at 4 , the bank has opted for unconventional measures to revive the indonesian economy which is set for its first annual contraction since the Asian Financial crisis of the late 1990s. Malaysian Opposition Leader seems to have missed out in his latest bid for power, failing to convince the king that he has the support he claims to form a government. He says he offered proof of a majority among lawmakers and fore repeated his call the Prime Minister to step down payment however, the palace said he failed to supply names and advises him to advise abide by the constitution. The u. K. And European Union are dolling up the rhetoric ahead of Boris Johnson selfimposed deadline. Top e. U. Negotiators say negotiate and have not move forward enough to enter the socalled tunnel phase, while a johnson spokesman said the u. K. Is ready and willing to leave the Single Market without a deal. Starting fell on the news. Those are your first word headlines. This, theention biggest story of the day. President xi jinping in his speech in shenzhen. We expected some announcements, and you can see the pictures now