Down almost 3 at one point. Jack ma said to surge up the wealth table after a mega dual ipo. Expecting to raise almost 35 billion in hong kong and shanghai viewed Sheldon Adelson rolls the dice in las vegas. He is said to be extorting the sale of his flagship casino which cost more than 6 billion. Shery lets get started with a quick check of the markets right now. We are seeing u. S. Futures opening pretty flat after we saw u. S. Stocks falling the most in the month and the regular session. The s p 500 down 1. 9 . It was the biggest drop since early september. We have the ongoing fiscal stimulus impasse, now on its third month. We also have surging coronavirus cases. Boeing falling on chinas plans to sanction the company over sales to taiwan. We have the u. S. Approving another potential 2. 4 billion of antiship missile fuel to taiwan. The vix closing above 30 for the first time in almost two months. We saw strength in the u. S. Dollar. Take a look at oil prices. Wti rebounding a little bit after falling to the lowest in three weeks in new york. Tracking the pessimism of cross Global Markets but also the threat of increased libyan output, paul. Paul were they specked them to see some of those declines, especially u. S. Bleeds into asian markets as we get going. New zealand back trading after the Public Holiday monday, already up 8 10 of 1 . The trade balance for the month of september coming in at expected. Futures in sydney pointing weaker as well. We did have some good news. Zero new cases two days in a row in the state of victoria, coronavirus cases. An easing of restrictions midnight tonight local time. Nikkei futures pointing lower, kospi futures pointing though as well. That is excited to show a return to growth. We will be discussing that later on. Joining us now for more on that market selloff, we have Riverfront Investment GroupPortfolio Manager rebecca felton. We did see some reasonably notable declines in u. S. Equities today. Isam wondering in what you reality sinking in as regards to stimulus or was it Something Else . Rebecca i think it was a combination of all of the headlines we have been seeing about a resurgence in covid cases. But to your point, the obvious stall in stimulus talks is challenging. Over the last couple of weeks, weve had this roller coaster of they are on, they are off. It feels like this gap between the two sides has gone down so much that you would expect them to be able to get this across the finish line, but it does not look like it will be before the election. Paul yeah, theres a lot of Political Risk at the moment, particular as we head into november 3 and potentially the weeks beyond. How are you positioning . Rebecca what we have been trying to do is find tune the portfolio as we got along rather than wait after the fact. We have been leaning into quality and growth. We are still playing that over play, but we prefer the resiliency in revenues and earnings that we feel we are afforded in the area. We are also leaning into some Consumer Discretionary names when you talk about Home Improvement retailers, bigbox names as well as infrastructure. Not general conglomerates, but more targeted towards Engineering Construction and that sort of thing. Shery on those tech names, this chart on the bloomberg showing our viewers how traders have filed on to those when it comes to betting on tech names. Of course, we are in earnings season. We have more than 100 Companies Already reporting to date. What are you seeing in terms of different trends emerging and perhaps some positivity and optimism in sectors we may have overlooked . Rebecca well, one of the things that has been most encouraging is the fact we are continuing that trend we have seen throughout covid of numbers coming in better than expected. When you look out may be month or so ago, expectations were for this quarter to be down about 25 . Right now, i think they are generally down about 16 . On balance, many of the companies that began seeking guidance have been getting positive guidance. We are very encouraged by that and certainly when you think about the underpinnings of the Stronger Economic data you have been seeing over the last several months, it stands to reason that those earnings recovery this quarter as well as looking into 2021. Shery we are headed into holiday season. Is it a bit early to start looking into Retail Stocks or should we start positioning now the fact despite the fact we have the president ial election next week . Rebecca the consumer has been solid. We have seen confidence coming in strong. Retail sales have been at the prepandemic levels. What we have also seen are a lot of retailers pulling their black friday sales ahead. We may not need to wait too long to see some of those types of activities come to bear in their earnings. We may see folks have already started their holiday shopping. Paul as we head into winter in the northern hemisphere, case numbers for covid19 increasing in the u. S. And europe but you are increasing your exposure to europe. Why is that . Rebecca it is a function of value. We still believe the u. S. Economy having gone into the pandemic in a relatively stronger position continues to emerge in a relatively stronger position. You cannot argue the fact you have relative International Equities selling so far below trend. We have not gone overweight but wed certainly neutralized the portfolio strategies where they are part of that benchmark. Shery it was great having you on. Riverfront Investment Group senior Portfolio Manager rebecca felton. Lets go to Karina Mitchell with the first word headlines. Karina stimulus optimism is fading further in washington with different and remaining on both sides. Nancy pelosi and Steven Mnuchin say they are closer to agreement but each accuses the other side of introducing new conditions. The impasse comes as no infection rates surge across the dropping withs investors doubting a deal will happen. Wall street slumped as Coronavirus Infections trigger fear of damage to the global economy. California remains prone to the most u. S. Cases, surpassing 900,000 infections, although the rate seems to be slowing. France reported its biggest jump in cases since april with president macron preparing to host a special Cabinet Meeting to discuss the situation. Leading u. S. Ns Aerospace Companies over arms sales to taiwan. Beijing says it will target them in order to uphold national interest. The 1. 8 billion package includes longrange missiles from boeing, mobile artillery from lockheed, and raytheon surveillance sensors. 2. 4 billion sale is also proposed. The confirmation of Amy Coney Barrett seems imminent with the senate set for an evening vote on her nomination despite democrat objections that it may take more controversy with the presiding officer being urged not to attend as several of his top aides have tested positive for covid19. Barretts confirmation would cement the supreme courts right tilt for years to come. Global news 24 hours a day on air and on bloomberg quicktake. Im Karina Mitchell. This is bloomberg. Back to you. Shery still ahead, we speak exclusively to salesforce Ceo Marc Benioff later this hour. Plus, more casualties of the pandemic. Australias central dessert becomes a parking lot for jetliners with International Traveling. Spectacular pictures coming up. This is bloomberg. Shery we have breaking news. Eli lillys government trial of Covid Treatment in a hospital setting will end. Eli lilly said no additional covid19 patients in its hospital setting trial will receive it. This recommendation based on trial data suggesting the drug is unlikely to help hospitalized covid19 patients recover from this advanced stage of their disease. All other studies of the drug remain ongoing, including this was an nih sponsored study. Eli lilly now ending that hospital setting government trial of its covid19 treatment. Ant group is set to throughmost 35 billion a dual ipos in hong kong and shanghai. A mega listing that will rank as the biggest ever and make ant one of the most valuable finance firms on the planet. Paul mckenzie Tom Mackenzie joins us from beijing. We finally have the numbers. Run us through them. Tom we have the drumbeat for weeks. We finally have the details. They hope to raise almost 35 billion. 34. 5 billion in these dual listings in shanghai and hong kong. In terms of market value, you are looking at about 315 billion. So, this is an ipo that is going to beat the likes of saudi aramco, where they raised 29 billion. You rightly say it is likely to be a record globally in terms of initial listing. When it comes to how much appetite there is for this stock, it was heavily oversubscribed in the offline offering by about 284 times. The pricing, by the way, 68. 8 yuan in shanghai per share. That is about 10. In hong kong, about 80 hong kong dollars, about 10 as well. Just a little bit above. 25 terms of market value, 1 315 billion is in line with the valuation of jp morgan and four times bigger than goldman sachs. Appetite from investors has been significant. The dates in terms of the timeframe, you look at the hong kong listing on november 5, a day after we expected to get results in the u. S. Election. Ant group is, his baby. What will this mean for his personal wealth . Tom he is doing ok, isnt he . He cofounded alibaba with about 60,000 of investment about 20 years ago. Hes now going to be the 11th richest person on the planet. In terms of his stake, he has an worthtake in the company, about 27 billion, more than 27 billion. That will bring his total fortune to 71. 6 billion. Above oracles Larry Ellison, above members of the family, and above members of the walmart family. He has been focused on philanthropy and education. Hes going to have a lot of money to play with. Shery we have been talking about all this ipo activity, especially the homecoming ipos, making it a blockbuster year for chinas brokers. Tom one of the best years and probably two decades according to the numbers bloomberg has been looking at. They have been benefiting chinas brokers from this search in ipos, this homecoming of Companies Like jd. Com, alibaba and out and group. The continue continues to recover but the measurement of the government has been open up the capital markets. In terms of the rankings, the global map rankings, 24 out of 50 of the top brokers are chinese, so almost half. Well above 2019 where there was 15 out of 50. In terms of the leading brokers, you are looking at cicc underwriting a lot of these deals. The context is important. In terms of the asset value of these brokers in china, in terms of the 131 registered firms in china, they are still little compared to what we are seeing in wall street. Assets, to combine equal to goldman sachs. They are doing very well on the underwriting side. In terms of asset management, theres a long way to go but it has been a good year for chinas brokers when it comes to ipos. Paul Tom Mackenzie in beijing, keeping an eye on the ant ipo. Coming up, as virus cases surge in europe, the World Health Organization says lockdowns can be avoided. The latest on the global coronavirus developments just ahead. This is bloomberg. Shery the World Health Organization says europe can still avoid covid19 lockdowns despite the region increasingly being the epicenter of the pandemic. Europes winters search comes as victoria state in australia emerges from one of the worlds longest and strictest lockdowns. Lets get more from michelle cortes. Let us start with the situation in europe because europe is ahead of the United States by a few weeks or so so what does this signal in terms of how the virus could also revolve here . Michelle a number of cases in europe is still going up dramatically with hospitalizations and deaths following. The World Health Organization has indicated it would be possible for them to avoid these very strict shutdowns that we saw early in the outbreak, but only if they all Work Together and there is some effort going towards that. That kind of collaboration and really strictness is what we have to see in the United States in order to not follow in their footsteps. In australia, one of the worlds strictest lockdowns is coming to an end. How did melbourne managed to get the virus under control . Michelle exactly. It is the point everyone in the world needs to see, that its possible to control this virus. Of course, we are talking about the southern hemisphere. It is going into the warmer weather there. You have the natural progression of the virus is working in your favor, along with the social distancing, the masking, the lockdowns, taking things very seriously. Once you do that, then you are able to start opening up your economy and getting things back together. We are seeing s in the work than other parts of the u. S. Certainly australia is an example of what entire countries can do if they Work Together. Shery when it comes to vaccine or treatment, the latest just moments ago, eli lilly suspending trials of its Covid Treatments. How important is this . Michelle this is very disappointing news. This is an antibody therapy from eli lilly. It works similarly to the one President Trump got that he said was basically a cure for the virus. This is when they use a medication it is essentially somone who already fought off the disease. In manmade antibody. It was in patients who are very sick. They stopped at for futility. Does not mean it cause any harm, adjusted and help people. That is unfortunate because these are the sickest patients. Trials are underway to see if we can get patients earlier in their outbreak, earlier after they are infected so maybe we can avoid hospitalization. Maybe help them before they get to that sickest point. But now we know there is a point of no return if you get coronavirus and get Something Like an antibody, does not seem to be helpful. Paul all right, Bloomberg Health care reporter, michelle cortes, thank you. Mattel says it is working with retailers to avoid shortages amid expectations of a stronger than normal holiday buying season this year. Last week, the company beat expectations. But analysts raise doubts about its supply chain. We asked the chairman and ceo if mattel would be able to deliver in time for the holidays. Our supply remains fully operational as we chase what we see as a short in every growth extraordinary growth for our product. We have managed through the disruption but at the same time we are mindful of any covid related volatility and do what we can to meet consumer demand in partnership with our retailers and driving our operation as best as we can. Why no guidance . How much visibility do you have . Ynon at this point in time, based on consumer demand, the momentum and demand for our product and inventory heading into the holiday season, together with the early start of the shopping season, we expect sales to grow in the fourth quarter. We give guidance in the mid singledigit growth through the fourth quarter. We also gave guidance for the full year in profitability. We expect profitability to grow significantly year on year, driven by all the operational improvements and momentum we are seeing is a company. So, when you look at products for the future, how do you monetize what you have, create new products while not being tied to a movie franchise to avoid the error like hasbro did . Ynon this is where the strength of our Product Offering and brands we own comes into play. You see growth in barbie. 30 growth in the quarter. This was the highest growth we have seen for barbie and more than 20 years. This is really all driven by great product innovation, strong Product Offering overall. Effective demand creation and what we see as very strong cultural relevance. Our toys have a purpose. Part of our mission is to create Innovative Products and experiences that inspire and develop. It is all about quality, safety and value. We are able to create products that do exactly that and we see the results in the numbers. Our products resonate very well with consumers and our partnership with retailers and driving demand is working very well. Ago, we heard a moment some analysts are concerned you are getting not sustainable. That once we get back to normal, we are going to see behavior changing once again. We are all playing uno right now but for how much longer will we be . Do you think kids will return to previous behavior which did not work out quite as well forget . Ynon we dont believe theres any pull forward in the Third Quarter versus the fourth quarter. Based on our own internal shopper research, we see the vast majority of parents plan to spend the same or more on holiday toy purchases through the fourth quarter. When it comes to longterm perspective, the toy industry was projected to grow before the pandemic. Clearly, there is benefit during the pandemic with kids staying at home but the toy industry is a growth category. Has been andways expected to continue to be a strategic category for retailers. It is all driven by quality product, trusted brands and the ability of parents to offer products that will entertain and inspire them and add value. What happens if we do