Investors see less chance of new regulations, equity futures writing rising in tokyo and hong kong. In china tries to reassure the Business World that it is open to trade. Concern of the moran sealer approach. Shery breaking out of south korea. We are getting the currentaccount surplus in south korea for the month of september, widening to 10. 21 billion. We had seen a previous surplus at around 6. 5 billion. This has widened to over 10 billion. The goods surplus coming in at above 12 billion. We have seen continued surplus for the current account in south korea. Consecutivee a five months surplus, not to mention exports in october contracted a little, but in september they rose for the first time in seven months. South koreag pmi in so weoday twoyear high, are getting a widening of the surplus. Haidi pcb numbers crossing the bloomberg, betterthanexpected, eating the analyst estimates on the bloomberg, Third Quarter 1ome coming it at just billion, better expectations than 850 million. A key watch, given we did expect deterioration in asset quality on account of the lockdown in the impact of the pandemic. The infield ratio at 1. 6 . Quarter, 350 million sing dollars. The largest singapore lender also explodes better that reports betterthanexpected results in the Third Quarter. It looks like we are seeing improvement in momentum facing Foreign Investors despite the pandemic leading to more provisions. Lets look at the market open with Sophie Kamaruddin looking at sydney first. It to we are watching see if gains on wall street continue in asia. After hours, gaining ground nearly 2 . Asx 100 opening little changed, some under pressure, bhb group falling. 7 . We are watching bank profits tumble at the Australian Dollar slipping, with yields holding a threeday gain about 71 after we saw the greenback slip on markets awaiting u. S. Election results and stimulus optimism. Also on the radar, alibaba results and the ipo getting pulled will be a big topic for sure for investors. Day,pan, is he earning nintendo among the companies reporting. Nikkei futures in chicago are edging higher. Midyen is trading steady at 104 levels. U. S. Futures moving to the upside ever so slightly. I want to highlight the british pound, under pressure amid speculation of more qe in u. K. , which could be 150 to 200 billion pounds, according to reports. Shery joe biden opens a clear path of clear path of the white house with crucial wins over donald trump in wisconsin and michigan, closing off path to victory in those states after claiming victory. After a long night of counting, it is clear we are winning enough states to reach 270 electoral votes needed it win the presidency. I am not here to declare that we here to, but i am report that when the count is finished, we believe we will be the winners. Our government reporter joins us from washington. Greg, just a couple of minutes ago we heard from the Supreme Court telling democrats to respond by thursday to President Trumps challenge to those latearriving balance in pennsylvania. Greg the Trump Campaign was to intervene in pennsylvania, where a lot of boats were cast by mail. During the pandemic, this was a popular option, especially among democrats, who preferred the vote by mail option more than republicans, who on President Trumps urging, voted more in person. That was more popular for them. At the Trump Campaign wants to get rid of the rule set by the pennsylvania Supreme Court, that allows these mail in votes to be tallied and received as late as friday, three days after the election, so long as they are postmarked by election day. He has an objection to those votes. But it is not clear if this can succeed. Vital tonia is President Trumps narrow path to election, and joe biden is just six votes away from the 270 electoral votes needed to win the presidency, which he can do if he wins the state of nevada. He does not need pennsylvania to win the presidency. Haidi how concerned should everyone be about this drawn out process, and the legal implications the Trump Administration is setting up at the moment in a couple of states, as well as prospects of a potential recount . Greg it depends on the margins in the states. A recount can be triggered if the margins are very, very tight. It is not clear to me in the states that matters if the margins posted will trigger recounts. In some instances, you can ask for recounts regardless of margin. American elections are very the to just very litigious. We sometimes have efforts to intervene in ballotscounting cases like this. It is not unusual to see lawsuits filed and closelycontested elections like this. Cant help but point out, what is happening with polling . The expectation was consistently for a blue wave at least, or an easier path for joe biden, not to mention the senate does not look good for democrats. And in the house, they lost a few seats. Reg greg that is right, republicans over performed in the election, President Trumps struggles notwithstanding. Even though President Trump is not lee is not likely to win reelection under current projections, we are seeing republicans will almost certainly hold the majority in the u. S. Senate. Democrats expected to win a majority in the u. S. Senate, and in the house, democrats expected to increase their majority and give them a strong a hand in the chamber. But republicans are going to pick up seats, which is going to weaken the negotiating power and political clout of nancy pelosi somewhat. Haidi potentially, that coming under threat in terms of that leadership. Greg, really appreciate your time, bloombergs greg giroux. Bloomberg subscribers, for more, your terminal. Cash trading is just beginning in sydney, the National Seeing theank, upside,. 9 , pretty much trading at the highest apples we have seen since the start of this month. Slumping thanks to the coronavirusinduced recession as we saw a swelling of baddebt charges. Rounding out this season for australian banks in general, it looks like investors are expecting a pretty swift recovery, or at least the removal of uncertainty with those numbers. Lets get you to Karina Mitchell in new york with first word headlines. Karina china is reassuring the world that its new fiveyear plan holds no barriers to open trade. Hisident xi said dualcirculation strategy does not imply china will become more insular. He says the plan is a more open relationship between the mainland at overseas markets and dentists it will benefit nations around the world. Continue tol improve its legal system concerning overseas affairs. We will strengthen the potential that the protection of intellectual Property Rights and the legal rights of Foreign Investors. We will be building a more favorable Business Environment to provide better services. Karina meanwhile, financial regulators in china say they support the holding of ant ipo. s the group says the move protects investor rights. The move comes just two days before the listing was expected to raise a record 35 billion. At the house of commons votes in favor of a new lockdown in england as Coronavirus Infections continue to search. Go into effects thursday and will see all nonessential is this is close. The u. K. Has europes highest number of reported virus deaths, with more than 47,000 premise to Boris Johnson has warned of mortality under on a greater scale. Global news, 24 hours a day, on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Back to you. Shery and we will have more analysis on the election impact i had, with joe biden seemingly on the brink of victory. We speak to the American Chamber of commerce in china about navigating tensions under a change of president s. But first, we speak to td securitys priya misra on how this will play out with rates. She joins us next. This is bloomberg. Haidi the prospect of a antested election and lack of stimulus package, driving investors into treasuries, the 10year yield falling the most since april, dollar also will be coming under uncertainty. Ed of global that td Security Rate strategy at td joining us is the atd of global rate strategy td security, priya misra. Of a the prospect potential Biden Administration without securing a majority in the senate, and therefore policy are alices and the fed may have to do more . What are implications for treasury . Priya exactly to your point, the markets are not pricing in divided government, very different the way the rates of market was positioned heading into the election. I think we were pricing in a quick resolution, the market was pricing in a quick resolution. If you look at the 10year, we went from the 60 basis point rate that had been in since april all the way to october, and that moved closer to that 90 basis points, almost a 1 range as the market started pricing in much more supply. We were going to get this covid package in the lameduck session potentially as high as one trillion potentially as high as 2 trillion, or some other spending plan under the blue wave. I think we must question both those assumptions now. It is not obvious that the legal sidesnge and the two calling foul on the election, that they can actually get together and come up with a covid package in the near term. And in the longer term plan, with the senate in republican control, i think the senate is a very big market mover, the fact the senate is staying under public and control. It implies less stimulus. That is the way that is why you are seeing the way the treasury market reacted last night. Right after florida, we saw things declining, continuing through the day. Even though equities have taken this in a positive light, rates are telling you we have got macro concerns. End in the background, covid cases are right easing. Covid cases are rising. You brought up the fed, we have a fed meeting tomorrow and i think the fed stays accommodative. But rates are already low and markets are functioning. So while they can keep rates low, i think the market is now saying the economy needs more fiscal help. And that is going to be much harder to get. That is why Interest Rates have been declining, led by the long end. All the deflation trades are being taken out. I think the rates market has a more negative macro outlook after the election outcome. Consistently, whether you look at the equities rally or yields on the longer thisr break even, all assuming we are going to see a jumping inflation. Is that story murkier than ever . Priya absolutely. Because a lot of that was predicated on fiscal stimulus. And if that is going to be much harder to get, than we have to go back to the fundamentals of the economy. In this way, with everything, we have payrolls also. Our economists already have reason they the have this weakening payroll report already is because the fiscal support waned. The macro environment is still challenged, and if you are not getting this additional preemptive fiscal support, that is when that inflation question balanced. So i think it makes it easier for the fed in the sense they can keep rates low for a long time, but i am not sure that is exactly what the economy needs if we have to get people out there spending, and companies retaining employees. So that really needs that fiscal support, which looks partner after the election outcome. Shery despite the bullish reaction from treasuries, we didnt see the 10year old 10year yield breakthrough that 75 basis points. Could we see more pressure on the 10year yield . Priya i think so. Think the equity market today reacted to the fact that maybe there wont tax increases, maybe there wont be that much regulation, but when we realized this might be a contested election, which means if they are still debating until the december 14,ate, and we dont have an election outcome known then, how are we going to get a covid phase for package done before the year is out . That gets pushed back to january or february. As the market starts pricing that, in europe they have lockdowns, no lockdowns in the u. S. , but that is a privatesector response to rising cases. If the equity market starts struggling, i think absolutely rates anticline, and we can go back to the 60 basis points level. Shery what happens to the dollar . You mentioned all these uncertainties with covid. Priya last night, the dollar try to rally because safe haven generally brings demand to the dollar. But mediumterm or longterm, we are in the weaker dollar gap. In the view that biden is likely to be more multilateral in his approach, this is better for global growth, and you know that America First policy unwinds a little, so that is one aspect which would be negative the dollar. Plus the macro environment, without as much physical support, it is not clear the u. S. Is going to outperform on the growth front. Therefore, we think the dollar should continue its path and if there is a short term pop in the dollar, we continue to see the dollar weaken. Global headcurity of rate strategies priya misra, thank you. One highprofile democrat believes the stock market today endorses a divided government that is unlikely to crack down on big business. Waveys the lack of a blue means there would be less aggressive regulations. Regardless of the outcome of the president ial election, we are going to have divided government because the house will remain in the hands of the democrats, it looks highly probable the senate will remain andhe hands of republicans, we will have either President Trump or Vice President haydn as our president. What is happening today in the markets is an endorsement of divided government. I believe that if biden is elected, or President Trump, that it means a smaller stimulus package then we might have we might have gotten preelection, when republicans would have been more inclined in the senate to help the president. Elected, there will be support for a large package in the presidency and in the house, but my guess is the senate will, Senate Republicans will revert to their fiscal conservative roots, and the package will be scaled back substantially, although still some stimulus. Been a memberhave of the administration and your wife served in the carter administration. When you look at the Democratic Party moving forward, what comes next for the party . Think both parties will have a lot of soulsearching, as they have been doing for the past few years. In the democratic already, there is active discussion, certainly carried forward in this primary season, when you had more than 20 candidates, as to whether we in nationalff politics putting forth leftcenter or centerleft candidates. That happens to be my view. I believe that if we put forward a true, cardcarrying we wouldnt be sitting here hanging on a razor razors edge on who is winning. It would probably be over in President Trumps favor. Ended the republican party, if President Trump does lose, there will be an interesting debate among those who have become strongly allied with his form of politics, which is not particularly fiscally conservative or traditional republican by any stretch of the imagination, and those who want to revert back to the center right roots of the republican party. That will be challenging for the republicans, because President Trump clearly is still extraordinarily popular within the party. So it is not clear to me that candidates walk away from him or repudiate him, or certainly his policies, will be embraced by their party. We live in a world where, because of gerrymandering, many of our states and certainly in many congressional races, the primary is the general election. And that tends to encourage people to go to the extremes, rather than toward the center, which is unfortunate. Alert we are getting an across the bloomberg. The pennsylvania governor is saying it is a good sign counting is taking longer. He has said he expects to count hundreds of thousands of balanced account tonight. Pennsylvania is also warning it could be days before ballots are fully counted. One of the states with a big , as joe biden has 200 64 Electoral College votes, getting him close to the 270 threshold where he would declare victory. But at the same time, we are seeing the Trump Campaign launch lawsuits in pennsylvania, one over access to counting on the other to stop the counting of latearriving mail in votes. Much more to come here on daybreak asia. This is bloomberg. Shery quick check of latest business flash headlines. Uber and lyft search the most in months after voters in back ania turned attempt to classify drivers as employees. Proposition 22 was funded by Gig Economy Companies. The ridehailing companies along with doordash, and post mates, raised twice as much money as their opponents. Ford sales fell last month, down 6 compared to when industry gain of 1 . Deliveries of the critical f150 pickups dropped 4 taylor . 4 . Ford sold 900,000 fseries trucks last year. Ford stopped publicly reporting Monthly Sales two years ago after gm switched to quarterly numbers. Slew of has approved a incentives to promote local production of electric vehicles. Benefits include a threeyour tax holiday for manufacturers of plugin electric models and an eightyear Corporate Tax waiver for makers of vehicles that run on batteries. This is bloomberg. Im dough hirsch. You may already know that goodrx can help you save up to 80 on your prescriptions. Unfortunat