Given access to voting locations. A review of ballots counted while his team were not president. The president saying he would sue to prevent the election from being stolen. The u. S. Has officially left the Paris Climate Accord, even with the full Election Results still unclear. President trump initiating the process a year ago. The exit took effect wednesday. Trump would be likely to spend a second term promoting fossil fuels and rolling back environmental regulations. Joe biden will rejoin the Paris Agreement immediately if he wins. In the u. K. , the house of commons voted in favor for a new lockdown in england. That as reported Coronavirus Infections continue to search. All nonessential businesses, venues, and stores will close until the second of december. The u. K. Has europes highest number of deaths at more than 47,000. Boris johnson warned of a mortality on a previous scale. Thats a look at the first word headlines. No problem, equity markets are on the up. Asia tracking the strong gains we saw in the u. S. The play is technology. Back in favor as investors turn on defensive plays, the less less likely stimulus. The Msci Asia Pac index inching upwards, more than 1 higher. We have the dollar currently flat, 1165. It dropped. The spotlight goes back to the fed. Almost all of the gains after peaking midmorning asia time on wednesday. Lets check on the asian benchmarks. China stocks set for the highest close in five years. To easeng seeking concerned that the economy is turning inwards after the u. S. Vote. Down, below 30. Dbs, also in favor. Beating the earnings. That lifted the sti. Earnings up almost 3 . Thats an increase in shares. Lets talk markets. We will bring in the head of asia trading strategy at city global market. Always good to have you with us. What markets are factoring in right now . I think the market is factoring in the idea that there will be a conclusive result at the end of all of this. Going into this concern, i think the markets or thinking about something inconclusive, protracted in their predictions of age, even 10 declines. What the market is now looking is saying there will be some form of stimulus. As what not be as much they were looking for by the bond market if there would have been a blue wave. I think there is some relief it will not actually be rolled back. Whoall, it seems investors have derisk and were under positioned are now coming back. Theyve got money to spend. We have a headline coming in right now on the virus deaths. We have it at 1. 2 million deaths. Thats a record increase for a single day. 9493 inious record was july. Now over 1. 2 million. Back to the u. S. Elections. It seems the playbook has gone back to what we saw before the elections, the technology play, health care in favor. Yes. Definitely. It almost seems the political set up we got means its a continuation of what we have had over the last 12 years since the Global Financial crisis, in the sense it remains to be seen whether we get a big stimulus package that comes through. But the bond market yields are moving lower and equity markets are moving higher. Indicates it will be more central bank driven policy with an emphasis on that. The stimulus. Lower bond yields are helping pictures go higher. Interesting was the underperformance of the infrastructure plays. Performing in japan. The farming sector up. Also the china tech names in hong kong are rallying, as well. Well wait to see any action taken on china adrs. That might come as early as this week from the regulators. Theinda we are tracking dollar. What is more important to movement, stimulus or the fed . I think it is really both. Anything which is going to be before the economy action being taken, either on fed,timulus side or by the will probably be dollar negative. Dollar negativity is normally seen as positive risk. Especially in the world of central bank driven markets. Still moderately bearish on the dollar. We think there will be more steps eventually taken. Rishaad i know you do a lot of mathematical modeling. Have beenof scenarios thrown up which have implications for Capital Markets . Markets weree happy if there was a decisive outcome in either direction. Result, i think the market was happy. What the market dislikes is uncertainty. Things thatof the is interesting is how stable the markets were through all of the twist and turns yesterday. We compare what happened lookeday to 2016, where there was a democrat win at the beginning, then you change it to a republican win. In between, we saw the futures going down in 2016. One thing that was notable, we went from a sensibility for gemma kratz, 30 for republicans, to both sides for democratic. Stableket was relatively on the way through that. We never went anywhere to the downside. I think the market learned its lesson from that. It is rare for the lightning to place on two same occasions. Think we are coming in under positioned on a global basis today. Kong and hongg kong tech. Theres a significant under positioning. Into theite bullish end of the year. Other models see a potential target around 3600 by the end of the year. Of march. By the end now we have the uncertainty out of us. Too early to Start Talking about christmas. It does seem there is a reduction of uncertainty and people will be deploying cash into the end of the year. The polling or ipoension of the ant probably caused reverberations. How are you looking at that as the implication to Investor Confidence in china and hong kong . Helpingiggest factor pictures at the moment is the fall in bond yields. Elections, into the we could see the derisking weeksing in the last few of october. S p 500 was down 8 . Check was down even more. What tech shares really like is lower bond yields. You see a 15 or 16 basis point drop in 10 year bond yields. Been a big argument whether after the election, money would go into value names, which would require higher bond yields, or go into tax. It definitely seems to be in the lower bond yields tech and growth favored environment. It is worth sticking with. Pleasure. Lways a thank you so much. Coming up, the shock suspension of and groups ipo could be the beginning of chinas campaign to rein in jack mas empire. This is bloomberg. Rishaad the suspension of aunt group shocking investors as it swamped brokers to get a piece of the action. It seems is the beginning of chinas renewed campaign to rein in the fintech empire. Lets discuss it with francis chan. This is really down to the jack ma empire perhaps falling out of favor, and how much is regulatory issues . What does it do for confidence and the ipo calendar . Thanks for having me. Does play a big part in the ipo suspension. Regulators, the country has been talking with aunt group about the requirement for their long facilitation importantly, more in asian cities where the banks are channeling access to, we will leave we believe it thatns, but the wind like and to foresee the ipo, anyway, i perceive it as a change in the decision from the very top of the country, maybe the group has to become comply with the rules before the ipo. Be key, or major risk would the Capital Requirement to ask them to put up at least 30 of the loans to facilitate. Not necessarily underwriting, but facilitate further funding partners. That would be in that position, because they only have 2 in the past. Haslinda with this implosion, whats the outlook for the ipo itself . When you look at the impact, what the impact in hong kong . Is it banking on mega chinese ipos . Think for the brokers, for the banks, the monetary loss would be, even if they agreed to refund the interests to the masses. The combination of that financing was really the fear. Sometimes over an annualized Interest Rate of 5 . Of how investors were perceived, coming to hong kong, i think that will be important to the financial markets, especially when its always trying to undermine views of china. What does the suspension of this ipo mean for the company itself and financial projections . I think the most important rotation for such a change would businesses able to depend on revenue in the first half of 2020. They have been getting margins 15 over the past few years. It was going fast. Filing for the group was 2. 1 trillion. Now if they need to pull back the growth pace for the credit business, thats important for them going forward. Francis chan there. Coming up, what the election means for singapore as it looks to balance its relationship with washington and beijing. We hear from the minister of trade and industry,. This is Bloomberg Singapore is looking beyond the u. S. President ial race. I spoke with the minister for trade, who said what matters is whether the winner will be able to unite the country. He warned the risks to the Economic System are the divided america. At thisnk we look election from a longerterm perspective, and forget the personalities. Let me explain where we say that. Regardless of the outcomes of the elections, singapore and the rest of the region will be closely looking at the following set of factors. Deeply this election has divided the u. S. Electorate. The challenge for either candidate will be how they can reunite the country, how they can unite the country, and make sure they adopt consistent and coherent policies going forward. The second challenge would be how the u. S. Can bring the covid19 situation under control so Economic Activities can resume. These are the most immediate challenges. Beyond those, the more serious challenges are as follows. First, how humans can maintain and continueveness to propel the economy forward, and how it helps. Its own businesses can deeper adjust to the pictures of global days a jaden globalization and not have that mobilization and digitalization in the u. S. Otherwise, there will be pushback against globalization, and the world Economic System may fracture or fragment because of that. Challengesbiggest for the u. S. Going forward is how it can maintain leadership in the world by mobilizing likeminded partners to Work Together and uphold end up. Pdate the Economic Security these are some of the immediate challenges and longerterm challenges, regardless of who wins the election. Is at stake for the world, singapore . We talked about how singapores own recovery is contingent on how the rest of the world recovers, as well. Now we have a resurgence of the covid cases in the u. S. , and we see restrictions. How is that impacting singapores trajectory when it comes to economic recovery . We are closely connected to the rest of the world, and the reimposition of longterm in europe and elsewhere will have an impact on the Global Economic recovery. So there will be knock on impacts on economies like singapore. Let me talk about how i intend to deal with this. Domestically, our First Priority is to make sure we open up safely and sustainably, open up our Economic Activities, resume Economic Activities in a sustainable and safe way. Thats fundamental. Our second priority is to make sure we can reconnect with the rest of the world, in terms of the feelings to make sure we strengthen our conductivity to the rest of the world in this crisis. Once we have done that, we can but get back to our primary focus to continuously reinvent by making sure we reallocate the factors of production from labor, capital, land, to the opportunities. You see awhen do recovery for singapore . You add a lot of english latest to describe it, the ushaped, vshaped, lshaped, k shape. Be gradual and uneven. Gradual because it depends on what happens in the rest of the world. If there will be further lockdowns, a repeat of the spike in cases. We expect the recovery to be uneven and gradual. Will be permanently changed. Regardless of the pace of recovery, some industries will have to look at new Business Models, new markets. Industries will continue to do well, regardless of covid. Was singapores minister for trade and industry talking to haslinda. A quick check of the latest business flash headlines. Uber and lyft surging the most after voters in california approved a measure to protect their Business Models from attempt to classify drivers as employees. Proposition 22 was crafted and funded by big Economy Companies to exempt workers from offering staff benefits. Doordash, with instacart, and postmates raised 10 times as much money for the fund as their opponents. Late trade. Upbeat forecast of the corridors. 5g networks persuading people to upgrade devices. As 8. 6 billion to the end of december. More than one point 5 billion above analyst estimates. It connects smartphones to wireless making a key indicator. Haslinda plenty more in the next hour. We continue to track the results of the u. S. Elections. Stay with us. This is bloomberg. Are you frustrated with your weight and health . 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In singapore and hong kong. Coming up to 10 00 p. M. In washington. Im haslinda amin. Our coverage of the election continues here. Rishaad i am rishaad salamat. Michigan. Winning the Trump Campaign sues over vote counts in michigan, georgia, and pennsylvania. Asian markets pushed higher, despite the unclear results in the u. S. Investors returned to tech shares and are backing away from the massive new stimulus in washington. Jinping tries to reassure the Business World is committed to open trade. The president rejects concern the dual circulation plan would see china turn inward. Asia tracking the strong gains we saw in the u. S. Overnight. The s p 500 rose about 2 . The Msci Asia Pac index coming up by 1. 2 . Poised for its highest since march of 2018. It is about technology and health care. Absolutely. Lets look at bank on. Bangkok. The uncertainty with regards to inflation. Set in bangkok, seeing if it is following the regional trends. Up by 11 point three. Thats where we are with that. Gaining a little bit of a ground. Reversing sum of all of this. We saw the up tracking gains of other currencies. Some clarity emerging over the winter of this election. Of that takingit place with india. Prospects of the Indian Trading day, strong. Singapore suggesting we will be seeing some solid gains, which could mean we have for straight gains in indian stocks. Lets get to the latest on the election with kailey leinz in new york. Where does the race stand right now . Still too close to call. Theooks like joe biden has easiest path to victory. Michigan and wisconsin were declared victories for him earlier wednesday, which brings his electoral vote college to 264. Try has 214. You need 270 to win. One caveat is joe biden only needs one more state in order to clinch the Electoral College. It is dependent on him holding arizona. That state was called for him by the Associated Press and frocks fox tuesday, but new data shows the largest county in arizona has his lead over trump narrowing. We have to keep an eye on that state. But it is under joe bidens column. Either nevada, georgia, pennsylvania would need to go to joe biden for him to clinch the Electoral College. Votes are being counted in those states. Biden is leading in nevada and gaining on trump in georgia. We had warnings of this turning litigious. President trump has legal challenges in a number of key states. What more do you know about them . In georgia, the Trump Campaign has filed suit for Election Officials in regard to how they handled mailin ballots and absentee ballots. Hes also filed suit in pennsylvania and michigan to stop the vote count entirely. Its unclear whether any of these legal challenges will go through. Experts say maybe not, considering the counting of votes being done right now is ballots that were legally cast. President trump trying to put a stop to them in a number of key states as the number goes more in favor of joe biden. So it has gotten very litigious. Haslinda when it comes to down ballot races, a blue wave may not be impossible, but unlikely. Very unlikely the democrats will flip the senate. They needed a net gain of three seats to take the majority in the senate. Right now only four of them are left. It is by far a long shot. The majority for democrats in the house has narrowed as a result of this election. Before the election, it was thought they can gain as many as seven seats, but seven democratic incumbents have lost. Possible of ais red senate. If joe biden does clinch the presidency, theres a real chance of a divided government. Rishaad thanks for that. Lets move to what else is going on as we hit the first word news. China reaching the world its new fiveyear plan holds no barriers to trade. President xi telling the International Import export that the strategy does not imply china will become more, saying it does not include a closed the master policy, the more open relationship between mainland and overseas markets. He insisted it will benefit countries around the world. China will continue to improve its legal system, continuing overseas affairs. Will strengthen the protection of intellectual Property Rights and the rights of foreign invested enterprises. We will build a more favorable Business Environment to provide better services. Financial regulators in China Support the halting of and groups meg ipo, describing it as hasty. Changes in syntax rules fintech rules would have an impact on the profit structure and it protects transparency and investor rights. This coming two days after it was sent to raise a record 35 billion. In the u. K. , the house of commons voted in favor of a new lockdown in england. Reported Coronavirus Infections continue to surge. Restrictions come in thursday and will see all nonessential business, venues, and stores close until the second of december. The u. K. Has europes highest number of reported virus deaths, at more than 47,000. Boris johnson warmed of mortality warned of mortality under greediest scale. Thailand rejecting plans for a National Reconciliation committee. Saying theynister must resign immediately. There will be a committee to discuss demands to ease tensions. Protesters say it will be meaningless if the Prime Minister remains in power. It curbs on the power of the monarchy. Senate republican leader Mitch Mcconnell wants a new relief package before years end as real election Election Results show democrats will lose some control in congress, with the results of a blue wave diminishing. A smaller bill now expected. Mcconnell says he supports funding for schools, hospitals, and Small Businesses, but not the sweeping proposal democrats want. That was a look at first word headlines. Still to come, what the outcome of the u. S. Election means for asia. Key sure mama bonnie. Next, the ceo about the strength of chinas consumer market. Coming right after this. This is bloomberg. I think was happening today is an endorsement of divided government. Cracks the wrist of investors not being involved, if theres return, you should be exposed. As much as there is emotion among leadership in the white house, that may not drive the boston 2021. Donald trump is not the source of all of the division in our country. We have been a deeply, increasingly, deeply divided country over partisan levels going back several years. We think gridlock is good. We will not see higher practice. The vshaped recovery is intact. Regardless of who wins, they will have their foot on the gas pedal. There are things the markets can cheer and fear. Contention in washington will lead to slower stimulation, no matter what party wins the president ial election. Without any clarity for congress, support for the economy will not come. We will get a lower grinding recovery. Thingsoverall scene is continue to be incomplete and we have to wait. Rishaad some of our guests commenting on election developments. Lets look at the u. S. And whats going on with the electoral map. Futures pointing upward, along with asian equities, which are tracking to the upside. Some great holes including pennsylvania. Also including nevada. We have media organizations predicting joe would win. That would give him 264 Electoral College votes from the 270 he needs to win. Donald trump has 124. Nevada has six Electoral College votes, which could push him over the line. Haslinda it is still complicated. President trump threatening to contest Election Results in court. That would make it complicated. It could expand in the days or weeks ahead, where the outcome is expected. Not a lot of clarity at this point in time. Rishaad absolutely. Even when you look at that, challenges. On the vote counts in pennsylvania and elsewhere, george r, as well. Say he is here not to declare he has one, but that when the count is finished, he believes they will indeed be the winners. Lets have a look at the morning call. Front and center. Lets look at what some tough calls are. Sophie kamaruddin is here. Bets, 12g election large stimulus narrow. Suppose it is leaving the equity bulls undeterred. Taking a look at the action, bowls staying the case, even with the divided government in the u. S. Looking likely. Return to tried and true trade like growth over value cyclical. Futures under pressure. The target has been 3800 for the to spring of 2021, with Growth Stocks looking favorite. Ever core, they are expecting the upside of 13 percent for the s p 500 index. No matter if trump or biden wins, given the increase in taxes or intact, they are off of the table. Investors looking for the fed to deliver a backstop. Numbers coming out later today, the ant ipo delay will be a big focus. Big sentiment or not . Pulling backbe sentiment, given implications of Regulatory Risk to comply with the rules. That will not look to be in the long run. Given china does have an improving economy, and there are blooming monetary conditions in hong kong. Is staying bullish on the hang seng. As for the baba shares, single in the day. Over tohe catalysts provide more upside for those shares in the city. Haslinda sophie kamaruddin, thank you. Plenty more to come. We had to the Chinese National import export show you to keep it with us. This is bloomberg. Haslinda welcome back. President xi jinpings signature trade exhibition is underway. Lets go to the China International export in shanghai, where Tom Mackenzie is joined by the ceo of loreal china. Pleased to say i am joined by the ceo. It is one of the Worlds Largest corporate netter companies. How is the business doing in china . Thank you very much. Business is looking good. Since the outbreak in china, we managed to come back to it fast and recover in the First Quarter. The first nine months, we are going at the appetite in china is still at a high level. 20 levels of sales . For the first nine month of the year. What are the key drivers . Part ofnk the beauty is the routine of the consumers. Particularly skincare, which is a big category in china. Very active during this time. More and more consumers have more sophistication, looking at more products. Big brands that they trust. We have seen an upgrade in consumption continuing. Loreal, andlike the high quality product taste. The demand was very strong. Unpack it a little bit. Whatever changing consumer demands . Changes in see some the consumer, of being part of consumption. So they ask the question of why i am buying this and what i am buying. This is where quality becomes important. Trusting big brands becomes important. N we see those brands working even faster. The second thing is for more Consumers Want to understand what they are buying and how they are using them. Digital is a Perfect Match to beauty. Digital livestream allows consumers to be more knowledgeable and know how to use the products with recommendations. Last but not least, its important what we have seen that when sustainability becomes high in the mind of consumers, particularly young ones. This is where good consumption is not just about me, but how i can be part of the better ecosystem for the future. Perhaps a vote to play at loreal, not only us, but to continue to do good consumption. Those are some of the trends on the ground. I want to talk about the macroeconomic picture in china. , butconomy is recovering there is a question over the health of the chinese consumer. You talked about plus 20 growth for the first nine months of the year, thats impressive. Are there any areas of concern when it comes to the chinese consumer, particularly when we see job losses and wages under pressure . Verge e crow coverage, we service a big number of consumers, in big cities, smaller cities. Ofkness downgraded in terms consumption. What i believe today is consumers are probably buying less, but smarter and better. There is some advantage to the big brands and the brands offering the quality and safety to the markets. We are quite confident to be on the beauty market, because we had seen beauty was very resilient. Even the other categories took time to recover, beauty as the secondoon quarter of the year. This is why i think we are confident in the years to come. You have a market share around 12 or 13 . Do you hold onto that market share amid increasing competition . Healthy,ompetition is because it always stimulates the leader to be better. The name of the game is innovation. We have big brands, but consumers expecting it, this is what we have a unique innovation system. Labs in china that we develop for china. We also develop Product Innovation from china to the world. We give the best of the world to china. Us acombination is giving lot of hope and strength to keep our leadership position in this market. Some of the local staff has been better at adjusting and adapting to the coronavirus. Quick to do that in the bigger brands. Are you seeing that . It is true the name of the game is to adapt fast. Loreal, we are entrepreneurs, we have a big leader, but to have the mindset, we have been attempting very fast. Quarter, we have been positive in china. Even though the markets were negative. We have been inspiring in our Digital Transformation in china. We have the solution to keep servicing consumers and online, but also with solutions. Name of thes the game. Adapt fast, adapt the consumer needs. We are in the midst of the u. S. Election, we dont know who will be victorious. Whether it will be trump or biden in the white house. Do you have a view on how u. S. Relations with china, chinas relations with other countries in the world, unfold on the back of whoever takes office . Know you said, we dont yet. It is difficult to project. From a loreal perspective, china showed a lot of openness in the 20 years we have been here. You see the perspectives to grow. Facilities. A lot of this is people in the Beauty Industry to launch products to innovate. We have seen this opening up is accelerating. The domestic market of china is also offering a tremendous opportunity of growth. Also contributing to the growth of the other parts of the world. There is a lot of creation we do in china that we launched in many places in the world. Do you have hope tariffs might be reduced after the election . Brand aret of our still the european brands. We have a lot of production in china. Ease, innk we have an terms of doing business, and it benefits all. Think what is important is toidarity between countries build a Brighter Future for the generations to come. Thank you for your time. Loreal chinao of talking about the growth prospects, plus 20 in terms of sales for the first nine months of the year. Market etive competitive market. Rishaad Tom Mackenzie in shanghai. A quick look at what going on. We are still waiting on results from nevada, georgia, pennsylvania, and a couple of others. Biden, the democrat hopeful, trying to get six votes to get him over the line to get to 270 Electoral College votes he needs to assume the presidency for the next four years. Lets look at what going on there. Futures on the way up, with regards to the equity position in the u. S. Lets have a look at the latest business flash headlines. Apple set to grapple with a shortage of chips for iphones and other devices, and it could affect its ability to meet holiday demand. Trade restrictions and supply chain disruptions caused this by the global pandemic. Stockpiling chips. Some supplies will not prioritize apple where they can. Qualcomm jumped in late trade after an upbeat forecast for the quarter. Suggesting all of the new 5g networks are persuading people to upgrade devices. The company says revenue will be as much as 8. 6 billion through the end of december, more than 1. 5 billion above analyst thinking. Chips connect smartphones to wireless, making it a key indicator. Lets have a look at what going on with the equity markets in play at the moment as we head towards the china clothes for lunch. Asiapacific markets nearing levels of march of 2018. Japan on its lunch break. Hang seng powering up over 2 at the moment. 200 alld the asx positive at the moment as we get the wind filling the sales of the equity boats. Csi 300 up to the upside. On 6. 65. Le heading into the lunch break. Positive in shanghai and shenzhen. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Live pictures of d. C. Youre watching ballot breakdown as the u. S. Election coverage continues on Bloomberg Markets asia. It has been a hardfought residential contest. The electoral of votes. Just shy to get him over the line. The magic number, 2070. Comes down to the outcomes of several states with its own rules of counting votes. It does make it complicated to call a winner. For now, lets get the first word news. The election result remains unclear and increasingly tight with both sides insisting they are on track for victory. When all he will win votes are counted. Biden won in michigan and wisconsin. The president s team says it wants a recount. Filedump campaign has lawsuits in pennsylvania, georgia and michigan. They allege they have not been given access to numerous counting locations guaranteed under state law. The Campaign Manager also demands a review of ballads that were counted while his team was not present. The president said he would sue to prevent the election from being stolen. Senate republican leader mitch package byants a new the end of the year. The chances of a slow called a socalled blue wave diminishing. Mcconnell says he supports funding for schools, hospitals and Small Businesses but not the sweeping proposals the democrats want. The u. S. Has officially left the Paris Climate Accord even with a full election result still unclear. President trump the process a year ago and the u. S. Exit took effect on wednesday. Spend auld be likely to second term promoting fossil fuels and rolling back environmental regulations. Joe biden said he would rejoin the Paris Agreement immediately if he wins. We continue to track the results. F the u. S. Election s lets take a look at how markets are at this point in time. Rishaad i will take a look at markets and [indiscernible] against this backdrop of a deep uncertainty with regards to the outlook for the presidency and which side it is going to go to in the u. S. Us. D, thank you for joining when people say that markets hate uncertainty, you do not get much more uncertainty than this. I think the key point is that markets are getting pragmatic. We do not know who is going to win, but whoever wins, we will have to see a further stimulus package at of the u. S. , which means we will need the fed to be supportive in terms of monetary policy. The 10 year yield came down in the u. S. The 30 year yield came down. The u. S. Dollar came down. All of these are extremely positive. I would say in conclusion, the wording of the meeting will be as important as the final winner of these elections. The fiveyear plan of china for the next five years just came out. All of the details have been published yesterday. This is probably as important as the u. S. Election from a nation point of view. There is a lot of positive aspects and positive developments taking place. To overcome the uncertainty of the president ial election itself. Look at the price actions and we also look at the you mentioned the fomc could be the light at the end of the tunnel. The question is, what could they do now . Are they fighting against the law of diminishing returns . It is the fiscal side that is essential now, not the monetary one. You are absolutely right. At least what they need is to maintain a kind of neutral stance. They do Pay Attention to the development. We will have to wait to see for the potential fiscal package. It will have to come one way or the other. U. S. Economy will need that second stimulus. Dated back to april of last year. To april. Ack for now, the markets are doing the job. The 10 year yield is very much stuck in the trading range. Same for the 30 year. There is no stress in the credit market at this point so this is quite constrictive from a monetary point of view and a credit point of view. We start to see numbers improving. We seea in particular, earnings upwards. Very importantly, the risk of an asset depreciation cycle does not seem to be emerging at this point. That is supportive to the financial markets. In terms of positioning, i imagine it makes sense to look beyond the Election Results and a look at three to six month down the road. We talk about how the fed will do more in the ecb will do more. The interesting part. On top of the sectors which worked extremely well link internet names extremely well like internet names the past few months, we start to see new names emerging. Electric vehicles are starting to get traction thanks to the expectation of the next two or three years. We see the rates in singapore recovering slowly. Now that the yield is coming down again, this is also improving. Capital andf exposure is made easier for investors and it is diversified. You do not have to take so much b the major bit major et. The ipo postponement, the markets are still reacting positively because it is comfortable deploying across several segments. In the end, this is still quite constrictive overall. With that delay, you are more cautious when it comes to alibaba. What would you look at . What are the alternatives . Absolutely. We think we will have to be a bit more cautious when it comes to the whole group. We know this is a group that works in synergies. We also know that in the u. S. , there is this antitrust campaign against the large internet names. This is echoing what is going on in china. The two countries are facing the same challenge as to how to integrate the same the giant companies that are penetrating the Health Care Sector and becoming a state within the state. This is a real challenge both for the corporate and for the states. This we tend to focus on the companies that are specific to their segment. It is not a case of coming out from alibaba, but it is to diversify further away from that giant and give us a bit more visibility as to how things are going to work out in the coming months and the relationship with the regulator. In particular how they can amend it and make it better adapted to the context. Haslinda great insight. One of wall streets highprofile democrats endorses a divided u. S. Government that is unlikely to cracked on big business. Waveys the lack of a blue means there will be less aggressive regulation. Regardless of the outcome of the president ial election, we are going to have divided government because the house or remain in the hand house will remain in the hands of democrats and it looks highly probable the senate will remain in the hands of the republicans. President ve either trump or Vice President biden as our president. I think what is happening today an endorsements of divided government. Biden islly believe if trump, or president that means a smaller stimulus package. Then we might have camillus package van stimulus package gotten whent have the republicans were inclined to help the president. If biden is elected, there will be support for a large package in the presidency and the house but my guess is the Senate Republicans will revert to their more fiscal conservative roots and the package will be scaled back substantially although still some stimulus. You have been a member of the administration before. As well inas served the carter administration. When you look at the Democratic Party moving forward, what is your expectation . What comes next for the party . Willthink both parties have lots of soulsearching as they have been doing for the last few years. In the Democratic Party, there is an active discussion certainly carried forward in this primary season where you had more than 20 candidates as inwhether we are better off National Politics putting forth left centered or centerleft candidates. That happens to be my view. I actually believe that we put cardcarrying progressive. We would not be sitting here if we were hanging on the razors edge as to who wins now. Probably inover President Trumps favor. Hat debate will continue in the Republican PartyPresident Trump does lose, there will be an interesting debate between those who have become very strongly allied with his form of politics, which has not been particularly fiscally conservative or traditionally republican by any stretch of the imagination and those who want to revert back to the more centerright roots of the Republican Party. That will be challenging for the republicans because President Trump clearly is still extraordinarily popular within the party. Me thatt clear to candidates who walk away from , certainlydiate him has policies, will be embraced by their party. Where becauseorld of gerrymandering, in many of our states and certainly in many congressional races, the primary is the general election. That tends to encourage people to go to the extremes rather than toward the center, which is an unfortunate thing. Haslinda coming up count rishaad coming, going to be speaking to the Asia Research institute on how the next u. S. President could tackle complex relations with china as well as the rest of the world. This is bloomberg. Back withou are bloomberg having a look at a shift of assets, money flowing into emerging markets. Asia and other ems benefiting. Take a look at the msci emerging markets index. It is the highest level since june of 2018. We have the Msci Asia Pacific index. That is at levels we have not seen since march 2018. At the moment, some of that uncertainty with regards to the president ial election. Perhaps seeing money flow into this part of the world. Looking elsewhere, we have the indian open nearly upon us. Seeing some improvement for the economy with pmis yesterday showing expansion as the pandemic began. We have the open reflecting what is going on in the rest of the region. The nifty banking index, gains of around 1. 4 . On top of that, the nifty as well. A lot of these tech i. T. Companies doing well. There is a hope that if joe biden does capture the white house, he may make it easier for indian professionals to work in the u. S. With a loosening of the restrictions on those socalled h1b visas. Speaking of joe biden, michigan and wisconsin, putting him on the brink of taking the white house from President Trump. Our next guest says the u. S. Remains a deeply divided country even if biden wins. Good to have you with us as always. Deepening polarization in the u. S. , will it mean political dysfunction and how will that play out in terms of u. S. Foreign policy, especially towards asia . I mean, it is very clear the only clear result of the United States election so far is that the United States is a deeply divided country, and if he should really focus on doing some deep healing within american society. As a result of that, he will have to be very much domestically focused and he is going to do less overseas what thehat is not american body politics as an appetite for today. Toope the world will return a more stable and predictable america on the world stage. An otherwise thing he could do another wise thing he could do is rose the pause button on china and giving some kind of positive momentum, especially after covid19. Haslinda isnt it true that the chorus when it comes to china will charge ahead. Will charge ahead . Even a biden win one not change that. Win will not change that. You are absolutely right. I wrote my book, which focuses on the number one political contest will be the [indiscernible] use veryi use, i carefully. You cannot switch off the contest. That will carry on because there is deep concern within the United States about the United States going to a number two position. This is something that is very painful for a country that has years toer one for 130 accept a number two position. It is one of those things that is inevitable. Switchedst cannot be off, but you can press the pause button for a while to rebuild american society, to make the American Economy stronger and then you start again. What im saying is it does not make sense to carry on when you have so many domestic divisions. President biden l focus more [indiscernible] if it goes to the deeply divided country and something for the democrats to think about long and hard about reconciliation. They put up a candidate who was moderate ultimately. A seasoned performer against an ofumbent who had this record lets say questionable ethics and question no administrative ability. More going into all this. Still, they are only just possibles just possibly squeaking by. That is exactly the point. I am actually quite shocked. I expected some kind of a blue wave, not a massive wave, a least small kind of blue wave. No one expected this nailbiting outcome that we have seen. To be honest with you personally, i am quite shocked at the amount of support President Trump has received. He has also increased his popular vote. His popular vote has not gone down. It shows you within the United States, there were two very different visions of what the future should be. Unless someone can heal that divide, the United States remains a wounded country. It is in our interest in asia to see the United States not divided, not wounded but comeback as a strong country. I am afraid that is all we have time for. Thank you for joining us. Coming up, the short suspension of ant group may be the chinas f sudden shelving ipo raisesgroup questions of what went afoul. Lets get to our chief asia correspondent, stephen engle. They called off the ipo. I think it is a combination of many things. First of all, you can look at the regulations the chinese authorities want to limit on such fintech groups as ant group. The government and authorities 12 regulated as if it is a Financial Holding company. They are also concerned about plays bythat ant facilitating loans from banks to consumers. You later say charging high fees and leaving all the risk on the Balance Sheet of the bank. They want ties or forward a not a not a lot of new regulations. Was not enough to put the kabbalah was that enough to kibosh on the ipo . Havees not seem like they their ducks in a row to do that at the last minute. Surely they knew what ant was all about. Or is it more of a political issue . The Chinese Communist party exerting its power and putting its thumb on jack ma for saying some offcolor things at a commun conference. Haslinda this issue will hang over alibabas Earnings Report later today. Yes. Open, were the u. S. Are going to get the alibaba numbers. Hey are going to be ok before the bombshell this week, growthed as though the in revenue, the pace of which likely returned to prepandemic levels, the First Quarter of the fiscal quarter was pretty bad for alibaba. The Second Quarter should have been much much better. They are looking within this fiscal year to make their Cloud Computing business in profit mode so that was going to be a focus. We are coming up as far as guidance for the third quarter. The singles day is coming. Extravaganza. Ng they are likely to have a pretty strong singles day despite the fact we are still slowly coming out of the pandemic lockdown and the dampening effects that had. But again, the sentiment is going to be heart obviously by kibosh of the ant group ipo. Haslinda plenty of ecodata on tap today. Thailand inflation figures coming out at noon. Shortly after, we get singapores retail sales for september. The bank of england to announcing their decisions later in the evening. U. S. Official jobless claims will also be a. Be out. Rishaad on top of all of what is happening today politically and economically, we have the fed decision. Bloomberg will have special coverage of that. That is going to be 2 00 in the afternoon in new york. 3 00 a. M. If youre up early in hong kong. Areave currently a we about 2 away from records for the equities there. We see the lurch to the upside. Gain. Traight days of looking also at the Msci Asia Pacific index. Highs not seen since 2018 should the emerging index, highs not seen since june of 2018. Wennberg daybreak middle east is next. Bloomberg daybreak middle east is next. It is daybreak middle east. Our special coverage on the u. S. Election. The results continue. After a long night of counting, it is clear that we are winning enough states to reach 270 electoral votes needed to win the presidency. I am not here to declare that we have won, but i am here to report when the count is finished, we believe we will be the winners