Billionaires index. Raise 30 5ting to billion in hong kong and shanghai. Aviation in australia. Alice springs emerges as the ideal place to store passenger planes left idle by the coronavirus. Shery. Shery breaking news out of south korea. We are getting the preliminary thirdquarter gdp numbers and we are seeing the quarter on quarter the economy has grown 1. 9 , which is beating expectations of 1. 3 and this is also coming after its first recession since 2003. We saw a contraction of more than 3 in the previous Second Quarter. Youre on your, still a contraction of 1. 3 but its a much smaller contraction than was expected and it is also a contraction that has eased from the previous quarter. We have seen growth and strength when it comes to south koreas exports and manufacturing industries. Thirdquarter manufacturing actually growing 7. 6 quarter on quarter when you look at the details in the gdp numbers. We have seen the rebound in china. South koreas biggest trading partner helping in the recovery in exports and investment, now quarter on quarter, the economy growing 1. 9 for the Third Quarter after the first recession since 2003. We have seen a lot of help from the government as well. Four extra budgets this year. Lets get some analysis of the south korean gdp numbers with. Oodys analytics economist give us some reaction to these numbers. Much stronger than what is expected. How much room does this give the government to implement some longterm policies and switch away from just a reaction to this pandemic . Thank you, shery. A strong rebound, absolutely no doubt about that. This exceeds the moodys analytics focus for a 1. 4 rebound and as you mentioned, point hasthe turning been facilitated by improving exports. South korea has continued to benefit from a recovery in overseas demand conditions, a strong tech by demand as well as recovering production activity in china. Of course, this number is what it is. Domestic consumption has suffered some setback to the september quarter, largely as a result of the emergence around the end of august. Investment results are likely to have but this is to be globaln the conditions. Overall, this is a promising return to growth. Has been relatively less impacted in the region. Byis extremely welcome domestic fiscal support as well as the conditional recovery. In terms of what the government can do, they have mobilized substantial resources for its supplementary budget. What we do expect is to see an extended phase of support. Just to ensure any shortterm deviations from the recovery in the Global Demand for the domestic pickup materializes. Extended phase of policy. Shery we are seeing the south korean won, and the highest, a 19 month high. How does this pressure the south korean economy when it comes to export competitiveness, and what do you expect the bok to duke bok to do . We do expect that the pressure we have seen buildup will be a contemporary one. The tablet surge in exports is likely to put it through the december quarter even though the net exports position is likely to be moderated to some extent, considering the restrictions which have come up in europe. This prevents downside risk. Recovery, ink to a our perspective, is for global infections rather than the recent surge for the strength we have seen. We dontof korea, expect any major deviations in policy. The Interest Rate is unlikely to be changed. We do expect a fairly accommodative policy environment regardless of the recent surge in the strength of the currency. You are still unsure about how long favorable conditions for south korean chipmakers can last. We are wondering if you can explain some of the risks you are seeing around that. Is a risk involved in the segment. This is primarily because of two recent developments. One of course is the fact that off through the end of the year. Seeother major risk that we is how the global tech battle is going to shape up, especially post the u. S. Election. Its true that south koreas chipmakers have been benefiting since september as a consequence of the restrictions that have come up on a number of Tech Companies in china, but whether this is a sustainable in the long run really depends on the trade dynamics between the u. S. And china. The conditions for risk remain highly in the near term. This is what will shape really the strength of the recovery in tech exports for south korea. Remains uncertain at this moment. Paul i went to get your thoughts as well. Good news we have had out of australia. We now have a second day in a row in the state of victoria with no new coronavirus cases. Restrictions are being eased. It looks as if the outbreak is under control. With that in mind, what is your outlook for the Australian Domestic recovery . The latest development marks a turning point for the australian economy, especially as in victoria, retail, hospitality, it resumes operations after months of suspended activities. Most of australia is already in recovery. Resuming restrictions and victoria can in be eased in terms of their limits, in terms of the limits we currently have. Have a stronger revival in consumption. Also, the recent fiscal measures. To gainpect recovery momentum through early 2021. Paul the moodys analytics economist, thank you so much for joining us. Lets take a quick look at the markets right now. Have been trading in australia almost 10 minutes, and most sectors were off by. 2 . Ands Communications Consumer staples in positive territory. New zealand weaker by 1 . We did have trade numbers for the month of october out of new zealand a little while ago. 600 million deficit. Nikkei futures unchanged and s p eminis pointing ever so slightly higher although things do seem to be getting drowned lower at the moment. The reality is really sinking in that the economic studios package in the u. S. Has turned into a political football. Lets get to Karina Mitchell with first word headlines. The stimulus optimism is fading further in washington with differences remaining on both sides despite plans to keep talks going. Nancy pelosi and Steve Mnuchin say they are closer to agreement but each accuses the other of introducing new conditions. Infection rates surge across the u. S. With stocks falling as investors doubt a deal will happen before the election. As wall street slumped infections trigger fears of damage to the global economy. California remains home to the most u. S. Cases, surpassing 900,000 infections although the rate seems to be slowing. Elsewhere, france recorded its biggest jump in cases since april with president macron preparing to host a special Cabinet Meeting to discuss the worsening situation. Of amy coneyion barrett seems imminent with the senate set for an evening vote on a nomination despite democrat objections. The debate takes on yet more controversy with mike pence being urged not to attend. Several top aides tested positive for covid19. The confirmation would cement this agreement for years to come. Sanction leading u. S. Aerospace companies over arms sales. Beijing says it will target boeing, raytheon, and Lockheed Martin in order to uphold national interest. The 1. 8 billion dollar package includes longrange missiles from boeing, Global Artillery from lockheed, and raytheons surveillance sensors. The sale is also proposed. 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. Shery. Shery still ahead, we will have more on u. S. China tensions with the president ial election just days away. The National Foreign trade Council President joins us later this hour to discuss the outlook for american trade policy, but first, the latest on the worlds biggest ever ipo. Jack mas ant group is set to become one of the most valuable finance companies on the planet. All the details, ahead. This is bloomberg. Paul jack mas and group is set to raise almost 35 billion u. S. Dollars through dual ipos in shanghai and hong kong. A mega listing that will rank as the biggest ever and make and one of the most valuable finance firms on the planet. Tom mackenzie joins us now from beijing. Superlatives abound with this story. Can you run us through some of the numbers . Tom they do indeed. This is a company that is essentially a Financial Service firm within an app. They offer payments but also insurance, credit scoring, so this is the proposition for investors. They are looking at raising 34. 5 billion u. S. Dollars. It is a dual listing in shanghai and hong kong and it will give the Company Evaluation of 315 billion u. S. Dollars. That puts it in line with jp morgan and it makes it one of the most valuable companies on the planet, four times that of Goldman Sachs. In terms of the demand we are seeing from investors in the offline offering, you have seen this stock an ipo oversubscribed by 284 times. The pricing, 68. 8 yuan in shanghai. 80 hong kong dollars in hong kong, about over 10 u. S. Dollars per share, and in terms of the timing, we are expecting it to list in hong kong on november 5. Shery what does this mean for jack mas personal wealth . Where are we at now . Well,e is doing quite jack ma. He cofounded alibaba with 60,000 u. S. Dollars. He had been an english teacher. A few years ago, he spun off and group but remained continued to have an 8. 8 stake. That stake in the company for jack ma is now worth over 27 billion u. S. Dollars and that puts his total wealth at 72 billion u. S. Dollars, just short of 72 billion u. S. Dollars. In terms of where that puts him, he is the worlds 11th richest person, above Larry Ellison of oracle, above members of the walmart family. He has had a very good 2020. Paul jack ma is not the only one who has had a good 2020. Excellent year for chinas brokers. Yearit has been a booming for chinas brokers. We have the homecoming of those companies, Chinese Companies listed in the u. S. That want to have a dual listing in hong kong or on the mainland so chinas brokers have taken advantage of that. The economy is recovering in many countries, far away from that kind of scenario and the government has pushed through measures to open up the Capital Markets so all of that has fueled what has been a bumpy year for chinas brokers. Forou look at the rankings 2020, 24 out of the top 50 brokers are now chinese, led by the likes of cicc. In terms of underwriting, they are doing well. In terms of asset management, they are a long way from their peers and competitors on wall street so just an example of the 131 registered chinese brokers. Have combined assets equal to Goldman Sachs. In terms of underwriting ipos, it has been a stellar year for chinas brokers. Shery Tom Mackenzie with the latest from beijing. Coming up next, hsbc releases third earnings later. We will look at what to expect. You are away if from the screen, you can always find indepth analysis and the days big newsmakers on bloomberg radio, broadcasting from our studio in hong kong. Plenty more ahead. Stay with us. Shery hsbc will announce its thirdquarter earnings. Profits slumped in loan losses are continuing to plague the bank as it contends with the Economic Impact of the coronavirus as well as tensions between the u. S. And china. Stephen engle is in hong kong. It will not be pretty for hsbc this quarter. Stephen no, the numbers will not be pretty but one thing i guess you can say they have going for them is all the other banks are faced with a similar headwind on the low Interest Rate environment because Net Interest Margins have been squeezed across the board. It is just how you deal with the other elements and headwinds like we saw on wall street. Some of the biggest banks saw big increases in Trading Volume and revenue in other areas of the business in the calendar thirdquarter so hsbc, yes, the numbers are not going to look good. We need to look at a number of things in addition to the Net Interest Margin being squeezed. You have to look at the restructuring and downsizing that was announced in february by the ceo because they seem to be not hitting those targets in the last quarterly results, so how much cost savings are we going to see . He wants to cut 35,000 jobs over the next three years. Significant downsizing in europe in markets like france and emphasis ina bigger hong kong and in china, of course. This is what Bloomberg Intelligence had to say about the thirdquarter. Apologies. Im going to read a bit of it. It really sums up what they call the fall from grace for hsbc. You mentioned of course, shery, about the geopolitical interests between china and the United States but theres been other issues. It seems the shares of hsbc folsom 47 yeartodate. Much worse, underperforming the hang seng index. We hit a 25 year low last month for hsbc shares. Thats according to Bloomberg Intelligence. Its been driven by a legal combination of covid19 driven fears. The dividend, which was canceled, and suspended, i should say. Revenue margin contraction, a delay in the cost savings program, and escalating u. S. China ties and relationship. And the bind that puts the bank in. Paul lets talk a little bit more about that. Hsbc standing right in the crossfire of the u. S. China struggle. Relationshey repair and grow in hong kong and china . Obviously, the last year has been very difficult for hsbc. We had the protesters attacked the banks for allegedly closing down some accounts that were tied to revenuegenerating some money. Direct source of income for the protest movement, and that it was slammed later by beijing and state media for not outwardly supporting the National Security law, but then when it did come out and support the National Security law, it got attacked by some members of parliament back in london for allegedly kowtowing to beijing. It is also in the policy quagmire of having to comply with the National Security law with Bank Account Holders as well as the sanctions coming from the u. S. Government because of the crackdown here in hong kong. Hsbc media has criticized for allegedly helping the United States in its investigation against huawei. They need to prepare all that. Has beeny the chairman in beijing, talking up the importance and opening of the china market. Northbloombergs chief asia correspondent, steve engle. Sergio ermottis last week at ubs after nine years at the home. During his tenure, a key question has been whether european leaders can never catch wall street. Sweeped if a democratic could level the Playing Field. I will say its very difficult to predict, but you know, what we see and what clients are telling us i mean, you are going to see changes. You will see asset allocations. You will see new policies being implemented. Even if the Current Administration is confirmed, probably, they will need to make changes. Manus you always kept saying to me in quarterly interviews that it is an uneven Playing Field, and comparing the wrong thing. So could that be a constructive thing where maybe the Playing Field gets a little bit more level for europe versus the u. S. . We will see. We will see. We will see. Is it europe improving or is the u. S. Basically losing ground . We will see. It is difficult to see how europe can gain ground from where it is today without, you shakeup ofnificant its, you know, of its system. The u. S. Is still not to be undervalued, underestimated, because, you know, it has always been able to come out somehow stronger by from any changes in administrations or politics at the you know, may be beginning, you may see some dislocations when changes come through. Manus nine years. What did you enjoy the most . Sergio well, you know, i would say that i enjoyed most of the days. The fact that, you know, it was always something new. The early days was managing, you aftermath of yet another crisis for ubs, and then starting to reposition strategy and working on the execution and getting tractions with employees and clients was the first focus. Over time, things have changed a lot. I have to say, im not so sure i enjoyed that. I spent a lot of time in resolving legacy matters. Shery that was Sergio Ermotti speaking to manus cranny. A quick check of the latest business flash headlines. Ubs is planning a compensation revamp with fixed resets rising by 20 as it looks to reduce coaching and lower the bonus. A review of switzerlands biggest bank found pay among employees was less than its rivals. The changes come as competition heats up. Coaching teamsh from ubs in recent months. Wells fargo is set to be exploring the possible sale of its Corporate Trust unit and that could affect more than one billion dollars. Sources also say it is during whether to known portfolio and may sell its 600 billion asset manager with bids expected by the end of the month. The ceo spent the last 12 months reviewing the banks businesses after years of scandals. Still ahead, we speak to the emq queue founder and cio, kevin carter, about aunt groups giant dual asia listing. He joins us, next. This is bloomberg. Are you frustrated with your weight and health . 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