Three virus levels. Investors are not buying the idea that the sectors prices have finally passed. The Company Behind k pop sensation bts prepares to take the stage in seoul. Big hit hopes to be a big hit on the korean stock exchange. Paul markets are just opened here in sydney. For a look at whats going on, lets go to sophie. Sophie sydney stocks gain ground. 1 , resuming the advanced after stalling and to retreat from a march i on wednesday. We have the likes of bhp and providing a boost while banks are under pressure and focus is on the rba governors speech in which he signaled the desire for more state funding while indicating that there will be a lower for longer rate environment, likely to see further easing ports 10 basis points, also indicating there will not be rate hikes for at least three years unless there is more sustained progress on jobs and inflation. Those remarks did see pressure come through on the aussie dollar, seeing an earlier push. Flipping the board to check in on the mood in the rest of asia, check in on whats going on with nikkei futures in chicago. We are seeing nikkei futures, some downside potentially in s p eminis. A changed. The dollar reversing course after being weighed overnight on stimulus concerns. Check out the offshore yuan holding below 672. Strength coming through given they are focused on the rate differential for china versus u. S. Today on the calendar, have earnings due from fast retailing. The Third Quarter earnings season in asia very much underway. Shery. Shery to our top story, nodeal in sight. Hopes of a stimulus bill fade as democrats and republicans remain far apart. I would say at this point, getting something done before the election and executing on that would be difficult. Just given where we are and the level of details. We will try and continue to work through these issues. Nowy the two sides are accusing each other of politicizing the negotiations. Josh wingrove has the latest. This is a very political issue. We are 20 days away from the president ial election. Which side needs an agreement more and where can they find compromise . And think both sides are telegraphing that they think that donald trump needs an agreement more. Donald trump blew up these talks and then came back to the table. Nancy pelosi really has not budged. Democrats who want her to get the best deal possible would applaud that. Republicans are accusing her of not being willing to strike a deal, to be flexible. The key update from the mnuchin for mnuchin is he alluded to significant compromises here that opens the door for something but he is also saying he does not think deal will come before the election so we should all temper expectations accordingly. He and pelosi are due to talk again tomorrow, thursday. We will see where things go from that. The president has asked for a or go homebig type of deal. Politicians like that sort of thing. Enough, weat was not also have these hearings into the ascension potentially of Amy Coney Barrett to the Supreme Court bench. What have those hearings been focusing on . Faira fair complete accompli, isnt it . It does not appear the democrats have any way of stopping this. Theyre questioning has been more about Health Care Policy and that sort of thing. The backdrop is that poll after not onlys donald trump losing the election himself but also losing the senate. For some republicans, this might be an issue of just making sure they get one last Supreme Court justice, if indeed they think a wave is coming to sweep democrats into office, november so that is the background. There is nothing to suggest Amy Coney Barrett will not be confirmed before the election. She really has managed to avoid significant gaffes. That democrats dont seem to be going for the jugular or thinking that they can. Paul thanks for joining us. Lets get a check of the first word headlines. Wells fargo has fired more than 100 employees from seeking Coronavirus Relief funds. Sources tell us the bank has by making false representations about relief aid. The wells fargo revelations follow jp morgans finding that more than 500 staff also tapped the aid program, dozens of them improperly. Boris johnson has told the e. U. Leaders he is disappointed at the lack of progress and the brexit talks, adding he will decide later this week if it is worth pressing on. Thursday, it is johnsons selfimposed deadline for an accord but the two sides remain far apart. Au. Leaders are to start meeting on thursday as well and johnson says he will review the u. K. Position after that. Thailand has declared a state of emergency in the capital bank as protests against the government continue. Demonstrators gathered on a main avenue as the king returned home from germany although they did not top his motorcade. Protesters wants new elections, constitutional reform, and curbs on the traditional powers of the king. They insist they do not want to bring down the monarchy. Malaysia faces yet more political upheaval. The Largest Party threatening to pull out unless it is given better terms. The National Organization holds about one third of the seats in the Prime Ministers government. It would unify the largest malay political groups and those are your first word headlines. Shery still ahead, european leaders are tightening restrictions in the face of a resurgent virus. More details on that, next. Plus, new zealand prepares to vote and polls suggest the labour party could clinch a rare outright majority. We will assess the chances of that, next. This is bloomberg. Paul european leaders are intensifying efforts to stem a resurgence in virus cases. Steep risebattling a in infections less than three weeks out from election day. Bloomberg Health Care ReporterMichelle Cortez is tracking the developments. Michelle, lets start in europe. Winter is approaching. Case numbers are spiking. How serious is this situation getting . To bele it is getting pretty bad in europe, and its looking like its only going to continue to get worse. We are starting to see shutdowns and restrictions happening across different parts of europe. Originally, they were very targeted. We were seeing things in berlin and liverpool. People are starting to get resistance to these measures and as people resist and continue to gather, the virus will continue to spread. We continue to see the virus spreading in the United States as well. We heard from the fda commissioner saying that the process of the trials of vaccines and treatments should not be politicized. What is the latest on the virus front here in the United States . Michelle 46 states in the u. S. Are having elevated infection rates yawn last week and every week, they have been going up for the past several weeks. This is something that is also going to get only more difficult in europe and in the United States, everywhere in the northern hemisphere. You have to remember that as it is getting colder out, this is a respiratory virus. It spreads through the air. Taking humidity out of the air emitted he allows it to spread more rapidly. The commissioner said nothing is political about getting vaccines onto the market. The hiccups we are seeing lately are to be expected. They are going to absolutely make sure they have windows down and are only letting things on the market that are actually going to help them get through this virus more successfully. Shery in the meantime, President Trump recovering from covid19, talking about potentially him having immunity to the virus as an advantage against his rival, joe biden. This idea of herd immunity, how widely supported is it here in the United States . Becoming an unbelievably controversial topic. There are Infectious Disease specialists who have a proposal that we should not be locking down things as tightly for a number of people. Those who are less likely to get very sick from the virus, and if we can get that group herd its less likely it will continue to spread and infect others. Its a very contentious point of view and theres a whole host of. Ther experts these are very impressive people with excellent credentials on both sides of the argument. It speaks to the idea that we do not exactly know how this would play out. It,he others out of epidemiologists and doctors are saying we could get to herd immunity but even if you are , thatg about a rate of 1 is tens of millions of people, even when you are looking at the younger population. And that just does not work. Shery Michelle Cortez, r bloomberg Health Care Reporter. Wereovid19 vaccine trials suspended this week with Johnson Johnson and eli lilly both halting their Clinical Trials over safety concerns, together with astrazeneca, which stopped its vaccine trials in early september. That makes three drugmakers that have had theresa stand that have had to suspend testing. We asked what to make of the vaccine trial halt. It is a good thing we are seeing the process play out the way we want it to, the way it is written on paper that it should. I dont think we would want to get to the end of this process and have a series of therapeutics and vaccines with no adverse events because it means our threshold for what those adverse events are is not strong enough. What we are saying is the process playing out the way it should to ensure that when we get to the end, we know that we have a safe and effective product that we can distribute to americans. What is the communication needed around that . You were talking to me in the havekroom saying we never really followed the trials so closely. Who is the best person to communicate this to the general public . Laura that is where a lot of the work has to happen. The public is not used to hearing all the ins and outs of this process and every single adverse event being reported in National News and making primetime National News. Ensuring that we are working with the Community Members who are going to be taking the andine, taking the products working with communication groups who really understand how you talk about risk, how you talk about the process, working with people who have spent their whole careers on the best messaging and the best communications that achieve for this is absolutely critical. Is the virus less deadly than it was three or four months ago . Laura i dont think i am the right person to speak to that. I think theres plenty of virologists who have been doing a lot of work on that piece but i think we are Getting Better at taking care of patients who have been infected with the virus, so perhaps outcomes are looking better. I dont think we have seen a lot of mutation in this virus to warrant saying that it is different or less deadly. System, especially a healthcare system, have gotten better at ensuring that when people get infected with the virus, they get the best care. We have new strategies for their care, new therapeutics coming online, and getting them out of the hospital and safely home. Francine going back to the vaccine and some of these trials being halted, is there a feeling that actually, political pressure is overwhelming some of the scientific rigor that is needed . Laura we were all feeling that way a few months ago and into last month, and the companies actually stepped up and said we will not cut corners on the scientific rigor. I think that there is a bit of worry that the emergency use authorization mechanism, which allows it to move products faster to the public, may have lowered the threshold for a companys ability to obtain that classification, and that may reduce the likelihood of people in Clinical Trials for these therapeutics and vaccines. That is the case we have to watch, making sure we do not overuse the authorization mechanism and making sure we can really complete all these Clinical Trials we are going through so that when we get to the other side, we have really strong therapeutics. We have really strong vaccines at the public is willing to take and use. Is being donemuch to really understand how we distribute the vaccine once we have the formula . Laura there is a lot of work in that space right now and theres people who have spent their whole careers studying the most theopriate approach to scarce resource allocation mechanism, so targeting frontline responders, targeting the most vulnerable of our populations. There is agencies who are really focused on this question. I think we have to pay really close attention to it so not only are we going to prioritize people who most need it, but those also might be the people most at risk, and some of them are absolutely critical to the response so we dont want to put anyone at higher risk than they absolutely have to be and we want to make sure that the vaccine strategies for distribution protect the most in the shortest amount of time. Paul that was laura sauer, assistant professor of emergency medicine at Johns Hopkins university, bloombergs school of Public Health supported by michael r. Bloomberg, founder of bloomberg lp and bloomberg philanthropys. Coming up next, the Agency Behind k pop sensation bts is making its trading debut in seoul later. We will discuss the prospects for big Hit Entertainment plus the broader ipo landscape. This is bloomberg. Paul a quick check of the latest business flash headlines. Tesla is beefing up its pr and Government Relations teams in china as the worlds biggest car market becomes an even more important source of income. It is recruiting in major cities as well as smaller hubs such as outside beijing and the capital of hainan island. That is in contrast to teslas approach in the u. S. , where its Committee Case and steam has been largely disbanded. Rivals both hit records in new york thanks to a vote of confidence. Jp morgan expects a new Energy Demands to accelerate in china tour 20 to 20 of the market while citi points to a strong order backlog. Chinese car data show whole sales of new Energy Vehicles 140 thousando units. Bmw has halted deliveries of several hybrid models over fears that batteries could overheat and catch fire. It affects more than 30,000 vehicles in the United States and europe including the x series of suvs, its range of sedans, and many others. Problems relate to ford components from the supplier that bmw did not identify. Shery. Shery lets turn to wells fargo because it has fired more than 100 employees for improperly taking Coronavirus Relief funds. Thats the same program for which jp morgan dismissed workers months ago. The finance reporter joins us from new york. Really, more problems for wells fargo here. This is an interesting one. The Economic InjuryDisaster Loan Program was expanded as part of the Government Stimulus Program back earlier this year as the government rushed to provide help for companies that were hurting when the coronavirus hit the u. S. Economy. Unlike the ppp program, where banks facilitated the loans, this money came directly from the fda. Later in july, u. S. Banks were urged to look out for suspicious deposits from the program. In doing so, wells found improper activities from its own employees in regards to the program. Paul the bad news did not end there for wells fargo. It was a bit of a mixed bag from the banks today, wasnt it . Hannah thats a good question. The thing with wells fargo, which is different from the rest of the banks, wells fargo is still under a Federal Reserve in postasset cap, which limits the growth of their Balance Sheet to the level at the end of 2017. Now, rates are so low and they, unlike other banks, cannot really make up for that with increased volume, so that is why their guidance looks a little bit different on the Net Interest Income side than some of their peers. Today was an interesting earnings day. Bank of america, wells fargo, and goldman sachs. This quarter has proven to be kind of a sweet spot for these things because they set aside so much in the first half of the that numberns and for the Third Quarter came in lower than expected across the board so they basically decided we have enough set aside, but the losses have not happened yet, so you get this weird back to normal quarter. Paul finance reporter Hannah Levitt in new york. Thanks for joining us. The wells fargo cfo told bloomberg he now expects his banksys higher than expected remediation charges to be a thing of the past. Those two items in particular were higher than most people would have estimated. Restructuring charges will come when they come. They are a little bit harder to forecast, but they generally exist because you are taking expenses down on the other side. As we said on our call earlier today, given what we know today, there is an expectation that on the customer remediation front, that we are through it. And that should not be part of the expense story Going Forward. There is a big commitment at wells fargo to bring structural expenses down over the course of the next couple of years through business supplication and product supplication business simplification and products implication. Product simplification. There are a lot of concerns about the economy and about how h