The broader markets are approaching previrus levels. Passed . Or crisis has tiktok is seeking another legal and to curb the use of the out in america. Shery lets get a quick check of the markets. We are seeing u. S. Interest, on the market pretty flat. Had hopes for reelection preelection stimulus, and those hopes are fading away. We have mixed banking reports. The s p 500s song for a second session. Communication stocks are leading decline. As oil rose in todays sessions. Take a look at what oil is doing right now. It rose to the highest level in nearly one week. We got a weaker dollar. The u. S. Shares turned negative. It was a weaker dollar. We had expectations for supply declines in u. S. Inventories, and that really pushing the oil price higher. Lets see how things are shaping up, here is sophie. Stock futures are pointing to more losses, after it pulled back from a march hike. Japan watching reports in , and over in south korea, the agency they hit makes it trading debut after an ipo valuing the kapok company. Kpop company. We had overnight dollars selling, lifting offshore you in un. Toare seeing a can tend you gain after rising about 5 . This Strong Demand that we saw for chinese date debt is working toward depreciation. The aussie dollar is steady. Tap as well,ech on and the kiwi dollar is holding steady. Chart on, and the reporting season is underway. Analysts have raised the earnings outlook. Economic activity picks up in the region. Politics may overshadow the stable earnings season. The governor speech that ou mentioned, whats speaking at a city conference. Watching there Global Economic prospects. Of u. S. Prospect stimulus package measures here in the u. S. , experiencing their own volatility. Sent these words. I would say getting something done before the election and executing on that would be difficult, given where we are in the level of detail. We are going to try to continue to work through these issues. Shery within the last hour, he told reporters that he and Speaker Pelosi have made significant compromises. We are speaking now with victoria. I wonder how much of a potential. O deal is going to be in this we have already seen significant pullback and the last few weeks. Victoria we have. I think that it is in the last couple of weeks that it has become priced in a little bit more. Of intel that point, the majority of investigators investors figured we would get some type of deal, maybe even a smaller deal. Individual stimulus checks going out or the Unemployment Insurance or the additional funds for that being given back. We are a little surprised that we are not seeing movement they are, and that could be part of the pulled the market back over the last few weeks. Even though minutia came out, and you played the clip of Steve Mnuchin speaking, we had cyclicals playing, and that really does not play into the story. You have to wonder if the market is doing some adjustment, and perhaps the movement that we are saying is not tied to the stimulus, and there is still some hope they small deal could be done in the next couple of weeks. Shery did you do some positioning with a recent pullback . The Third Quarter is typically a strong holiday season. Victoria right, it is strong season and Strong Quarter each year. We did a little bit of positioning. Talk about how earlier in the year, we started training some of those higher flying tech names, like apple and microsoft. There are still Large Holdings in our portfolio. We took a little off the table. Over the past week, we have been buying names like visa and broadcom. That is a great way to play the financial space. Banks is not a sector that we really like at this point in time, even though we have seen good earnings over the last couple of days. You can play the financial space through Credit Card Companies as more and more people are going away from cash. With covid, people are using Online Shopping and payment apps linked with credit cards. With broadcom, we like the secular growth story. You have a name here that has a lot of different vertical growth businesses, but it can continue to do well in, that have to do with communications and 5g. That is a great space that we feel that we can have. It is not really a sexy name, but it is done very well, and it has a strong Balance Sheet. Those are two names that we have added over the last week. Paul what is it that is convincing from an investment perspective about the banks right now . Victoria the majority of that is probably going to come through where the Federal Reserve is sitting right now. We know that they are all in and keeping rates at the lower end tied to zero. We anticipate that that will happen through 2023 based on what powell has said. It could be another two years before the economy gets back to where they think it should be, never that new normal is going to be. Whatever that new normal is going to be. We have heard banks talking about the net interest income. Concern there, until we get a steeper yield curve. Do not seetep we yields moving tremendously higher. Theably, until after election or closer to the end of the year, i do not think that we will see huge event there. For now, banks will probably not be our preferred space. Vshapedoking at a recovery, we are seeing a huge increase and covid cases and europe right now. There is risk around the contested u. S. Election results . Victoria there are some areas in the economy that are vshaped. Housingly areas like and durable goods and consumer confidence, and Small Business optimization, as of late. There are certain areas that have that vshaped recovery. But we do believe you need to put in place a barcode strategy a barbelled strategy. Look at walmart or mccormick, the spice company, as people cook more from home. Add in those names, and some tech names, like netflix and amazon, but all of that in your portfolio and kind of build a willll strategy, and that give you a buffer against the volatility that we are expecting to see, with increased cases of covid and the election, and even brexit that we anticipate will wrap up a little more as we get to the end of the year. Fernandez at a cross mark global investments, thank you for joining us. As get a quick check of the first word headlines. Supreme Court NomineeAmy Coney Barrett has faced further questioning by senators. They have chosen to focus on statements by President Trump. She was asked about his suggestion that the election might be delayed and the question about him pardoning himself if necessary. U. K. Prime minister Boris Johnson has told you eu leaders that he was disappointed about the lack of brexit talks. On thursday, johnsons selfimposed deadline is for the courts, but the two sides say that they remain far apart. Johnson is saying that he will review that u. K. Position after. Europe is rapidly becoming the newst covid19 focus, with cases rising in several countries. France is imposing new curfews and paris, and there is a partial lockdown in netherlands. Italy and portugal are performing record numbers. German chancellor Angela Merkel is saying that the country cannot afford a second wave. China is taking steeping action to step out a possible surge. The total number of new cases is only in the low double digits. But authorities are saying that they are taking no chances even in a small outbreak. Those are your first word headlines. Shery up next, a closer look at the latest u. S. Bank profits, starting to reserve lines before covid. Plus, more insight into the with hal tensions, brands and what Foreign Policy will look like under the next president. This is bloomberg. Shery wells fargo has fired or the 100 employees for improperly taking Coronavirus Relief funds. This is the same program and which jp morgan released its workers months ago. We had earnings from wells fargo that were not that great. The net income missed. You have more problems for the bank of a completely different nature. Busy day for the banking world and for wells fargo. Injury Disaster Loan Program was expanded earlier this year as a part of the 2 trillion government stimulus. Paychecke Bank Protection program, this money came directly from the fda. To lookks were urged out for suspicious deposits from the program. Fargo found wells improper activity from its own employees in the program. Paul in terms of the rest of the banks, we had some good results from goldman, which was a mixed bag. Hannah it is proven to be weirdly enough a sweet spot for the banks. They set aside massive amounts for loans and the first two quarters, and that number for the Third Quarter came in a way lower than expected. That led to a profit rebound. With goldman, there was a pandemic trading boom. Leadersame time, the have cautioned that we are not out of the woods. They are still very much in the wait and see mode. They have set aside the money, and they are not taking the losses yet, so we have a strange quarter. Paul financial reporter, Hannah Levitz in new york. Wells fargo cfo told bloomberg that he is expecting higher than expected severance and remediation charges to be a thing of the past. Those two things were higher than most people wouldve estimated. The structuring recharges will come when they come. They are generally harder to forecast. I think as we said on our call earlier today, given what we know, there is an exultation on the customer remediation fund, that we will work through it, and that should not be a part of the expanse expense story going forward. Through business simplification and product simplification and a range of other things, we should be able to run this company on a lower expense base. This is at a time when there are still a lot of concerns about the economy and how that will be for consumer thanks. As you were sort of mapping things out heading into this earnings season, do you get any sense here the economic environment is going to be supportive of the current plan that wells fargo has in place . We are seeing a real improvement in a lot of areas over q2 of this year. We do not know the effects of the next couple of quarters due to covid, but we are seeing Consumer Spending pickup through debit card and credit card. The Mortgage Market is picking up. A lot of home purchase activity is happening as in some cases people are moving from cities to suburbs, in part of what has happened with the virus. Autos, a lot of activity in autos. Credit, as a result looks better today than we thought it would one quarter ago. I think you have mentioned that provisions have been down below analyst expeditions. 29 basise ups were points in the quarter. While we are not out of the woods, there is still uncertainty in the past, it feels a lot better than it did a quarter ago. Feeling better and terms of delinquencies and loans . Know, from both the cares act and what has been offered by banks, the deferral programs that allowed people to take a pass on mortgage payment or credit card payments, were seeing the utilization of those deferrals come way down. We are down to about 5 of the consumer loans outstanding. The people who have come out of the deferrals have been permitting current, about 90 . Stimulus,s no more and the deferral programs are over, we will see who rolls into the liquid see. There will be some and a goodie about delinquency ambiguity until that happens. For both consumers and for businesses. Since the Federal Reserve order and 2018, you have been limited in regard to Balance Sheet growth. Youre worried that you cannot extend the type of lending that you want. For several, to Small Businesses. Is there a limitation to what you can do, and will they be a credit crunch and those areas . Will there be a credit crunch . I dont think so. More of the constraint is on the deposit side. So much liquidity is floated into the banking system, but the growths and for certain types, we have worked with customers to find other places for that money to go. On the loan side, that reverse is true. We could use more loan demand then we are seeing. The Housing Market is on fire. Autos are very busy, and people are buying cars. People have been a little slower to spend on credit cards, because they have been appropriately conservative as unemployment peaked and is still at higher levels, and there is more uncertainty. Wells fargowas the cfo john shrewsberry. Tiktok has asked a federal judge to block a second round of u. S. Restrictions. The details are ahead. This is bloomberg. Atl chinese social media tiktok is trying to fend off looming further restrictions in the United States. Stephen engles is tracking the developments and is joining us now from hong kong. Tiktok has already one already won one legal battle. What remains . Won the firstk trump executive order on tiktok, the first band. This wouldve banned tiktok from the u. S. App stores, with android and apple. , bytedance that argued that the Trump Administration exceeded its authority. The judge agreed. Preliminaryposed a injunction, halting the impending banana on the app ban on theending app store. Deadline is from trump and includes a deadline for the sale. Would forbid American Companies from providing the underlying web services that make the app available for a than on it states before the United States. Order exceeds Donald Trumps executive authority, and this is what they have said in the statement. There would be permanent devastating harm to tiktoks user base and competition, even if the government ban was lifted after a couple of weeks or months. Round one went to tiktok. We will see about round two. Shery what do we know about the nt group inisting a america . Stephen people with people familiar are saying that the u. S. Is possibly looking at putting the answer group and ,he ant group and wechat digital payments, a big part of that business. Chat pay from tencent, with the concern of the United States , as the apps get more exposure, giving chinese apps exposure to millions of peoples banking information and personal user data. That is what the u. S. Is arguing. We reported that perhaps the United States was looking at putting ant on this embassy list, a blacklist. We are hearing that the Chinese Foreign ministry has accused the u. S. Of economic bullying. The Trump Administration has not produced any substantial information. The latest information about the blacklisting is coming from reuters. Shery that was stephen engle, joining us from hong kong. Lets get the quickest check from the latest business flash headlines. As the worlds biggest car market becomes more more a source of income, it is recruiting in major cities. Tesla and its approach and u. S. With its Communication Team has largely been disbanded. In new yorkords thanks to a vote of confidence on wall street. 20 of the market by 2025. Data shows a 60 for new vehicle owners. Up next, what will the u. S. China look like under the next president . We dig into that with hal brands. This is bloomberg. Paul you are watching daybreak australia. We have been hearing from the with a bank of austria, speech being given about the recovery of an uneven recession. Hes been saying that the effect on the Household Income in australia has been following has been following. He is reiterated that there is not going to be any great hikes years,tria release three until inflation gets and that target range, at least 2 to 3 . Dollar the aussie weakening a little bit. Lets get a check on the first world headlines. Fired more than 100 employees for improperly using Coronavirus Relief funds. Foster visitations were made about the relief aid. False revelations were made about the relief aid, similar to what happened with jp morgan. To theocks react stimulus deal perhaps not passe before the election. Nancytion says that pelosi and Steve Mnuchin spoke about how the democrats may be holding back in hopes of winning the senate next month and driving their own bill. Governmentainst the continue, as the king returned home from germany, and they did not stop. Protesters want new elections, because additional reform, and curbs on the power of the king. They said that they do not want to bring down the monarchy. Malaysia faces more political upheaval. United Malays National organization those were your first word headlines. Calls for for morning snapshot of notable traits for the day. Sophie is with us in hong kong. Of ans a little bit outside, but the down trend has continued. Sophie taking a longerterm hear that 2020 is the turning point to diversify away from the greenback, including more liquid currencies against the dollar, such as the euro, the yen, and the pound. Themparison was drawn to of disrupteriod risks are election likely adding to the pressure. Bol we look at the be ok k. What are we expecting from the government . Stephen sophie governor lee said that the central bank would be willing to ramp up bond buys. Capital economics expects the next move to be to reach into a nonconventional toolbox and announced an explicit policymakers will likely want to rein in funding costs. Shery lets turn to car makers. What is driving the optimism there . Sophie we have seen a state of updates from chinese carmakers. With moreting this upbeat numbers, when it comes to chinese car sales. September report, the expectation is that there can be great grow