By middecember. G20 discusses the virus and remedies. President trump. The worlds first travel bubble burst. Kongsingapore ehrlich is being postponed by at least two weeks. Host calling and a question the fragility of the travel bubbles. And how fragile this travel revival could be. Stocks extending the weekly decline towards the end of the week. We are looking at more optimism going into the start of trading in asia. Kiwi stocks up by 0. 4 . Goingle bit of advance into the start of trading. And we are seeing dollaryet continue to decline. Dollar weakness continues to play out. Vaccinations when it comes to the vaccine progress we have seen against covid19 could be administered in three weeks if they are given the green light from the fda. There are still questions about how poor countries will be given access. We are in washington. How close are we to get some rgency off to raise the emergency authorization in the next few weeks . Duringeems a could calm an emergency meeting. When you think about what we have been through these last few months, december 10 is pretty close. The head of the governments operation work Speed Program talks about the first people in the u. S. Getting jobs as early as december 10 or the 11th. It seems it is all happening very quickly. There are many things that could still go wrong but he seemed pretty optimistic. Perhaps forstic pfizer, moderna and the vaccines provided to the richest countries. What about the ones going to developing economies . A good question and an interesting story for my colleagues today about that. Is a little further pfizer, andr moderna. And other companies are producing a job that seems to have almost 90 effectiveness. A lot of folks riding on the astrazenecaoxford vaccine. Is not only it less expensive than the other one but it is more durable in terms of being stored. We still need those results. That,ne is looking at especially low to middle Income Countries. There could be a broadbased Global Recovery or a k shaped recovery where the better off well with theg lower Income Countries left behind. Im not sure the deadline. Good news for the u. K. They believe that vaccines could start as soon as december 1 and every adult could be vaccinated by april. The u. K. Seems to have a lot of momentum behind it. And when they talk about the rapid rollout, they are talking about the pfizer vaccine. Krasny with the latest on the vaccine. Although President Trump declined to join g20 pledges on sharing with other nations, Kathleen Hays is watching this. Arabia the saudi virtually held conference had much to do with sharing the vaccine with other countries. A lot of people say this is an imperative. If you dont want the virus because it continues to spread around the world, you have tos top it just about everywhere unless you want to completely close your borders forever. The g20 leaders said they would spare no effort to ensure affordable and equitable access to the vaccine. They sped eggs and civic immunization to stop the virus is a public good. Saying it is a top priority to ensure affordable and equitable access to the tools for everyone out there. When donald trump took his turn, he was up and down praising the u. S. There were a lot of shots of people speaking at the summit. Places. Was not the only where the leader of the country praised his own countrys efforts. The difference was that while donald trump praise the leadership, he did not say anything about sharing with the rest of the world. President putin, even though there is not enough vaccine yet to vaccinate the entire population of his country, he offered to share it with the rest of the world. Sharing with the poor countries. Angela merkel said she is concerned about what is going to happen. Basically, if the money runs out. Allianceannot hold the of developed countries together and she wonders what will happen next. It is still a very big topic. It wouldve been a positive signal had President Trump thrown his hat into the ring for sharing with other countries. Others want to know where the money will come from. Many countries want to vaccine their own vaccine for its own population. Many will have a hard time sharing with others. Host President Trump also going against the g20s tides on Climate Change. Surprisenot such a big. He has already taken the u. S. Out of the paris climate accord. Donald trump said he walked away from the accord mainly to help american workers. Lets listen to one of the key statements he made. The paris accord was not designed to save the environment but was designed to kill the American Economy. This is a veiled slam at china. Is a big that china polluter and is doing nothing to change that. The deal in that agreement wouldve been too much for the who and others like china he thinks are not ponying up enough. It underscores the position he has taken in his fouryear presidency. Host 2 that will be interesting to see how this plays out under a Biden Administration. First word headlines with Karina Mitchell in new york. Global Coronavirus Infections are racing to 60 million with the u. S. Reporting more than 100,000 cases each day since i over. Won emergencys approval. The u. K. Is discussing lifting some curves while france is planning a three phased relaxation of lockdown. Australia is ready to ease restrictions after no new cases for 23 consecutive days. It will no longer be compulsory for residents of victoria to where masks in public. The opening of borders. Travel bubble has been postponed for two weeks since reported virus cases searched in hong kong. The delays. Will bengement suspended. Prominent democracy activists in hong kong say they are ready to admit all charges. Joshua wong rode on social media he expects to be jailed immediately. The three are accused of organizing and Unauthorized Assembly at the height of antichina protests in hong kong. Ietnam is being warned National Security advisor Robert Obrien told hanoi that the beervalued currency could the basis for reversing u. S. Plans for new tariffs. Wants toed vietnam maintain good relations with china. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Thetill ahead, the clean energy plans. Host 2 how the markets will price in the latest vaccine development. Fargoshear from wells brian jacobson. This is bloomberg. Host optimism over progress on the virus exiting continues to says shots u. S. Could start in three weeks. Despite that, our next guest is wary of surprises. Joining us is brian jacobson. Thank you for your time. Not surprising given we continue to see these warnings, from global organizations including the imf saying the Global Recovery could start fading. Our chart showing the latest forecast. There is still a contraction of more than 4 or the world economy. How will this affect the markets . There still seems to be a disconnect. Brian there is a lot of excitement over the vaccine use and rightfully so. The sooner we can widely distribute it, the sooner we can get back to ordinary life. The problem is we should we first have to get through winter. This is setting us up for some downturn economic surprises. Most of the story has been positive surprises. There was a wide expectation you would see Consumer Spending taper off but it did not happen. There continues to be positive surprises. But now, with renewed restrictions, lockdown light happening across europe, we think there is a significant chance that we could say negative surprises. The big question is whether that will be the market or not. One of the things we look at our macro factors and how that is priced into securities. Last twothat for the weeks, whether it is inflation surprises or economic surprises or changes in real rates, it has not mattered much. Host 2 cap perhaps because you have the backs top of the vaccine coming up. Are you still positive towards cyclicals . Are you positive on the sectors that could see rebounds . Brian going into the president ial election, we were anticipating that around that time or shortly after we would start to hear about some of these phased three trial results trickling in. We expected to see some upside in the market from more of the large cap growth area to the small cap value. We expect that will have some room to run. In the last year, largecap growth has outperformed small cap value. It is a margin of about 50 Percentage Points cumulatively. We expect this rotation to continue. We are willing to ride the wave of optimism on the back of this vaccine use. Tensions in the Positivity Rate and concerns that the virus is not being handled well in the u. S. , brian that is one of our favorite areas. Exposure. Arket for the last three or four years, we were interested in the emerging markets but it seemed it was getting relatively cheaper compared to the u. S. Market. If we do get this Global Growth and it is synchronized, we think that will trickle down to the benefit of the emerging market. From our perspective, there is a good enough valuation discount that we can ride out any volatility in case the market tends to focus on negative economic surprises. We think that the Market Recovery or Economic Activity recovery has long legs to it after we get an effective vaccine. We are in courage to buy this statement from the g20 about their commitments to making sure they are sharing the vaccine and it will be widely distributed. That can really contribute to the synchronized Global Recovery that will hopefully last not just a matter of months, but at least a couple of years. Host 2 what do you like in em . More prone to looking at the opportunities in asia given that is where we have seen a better handling of the virus . Brian this is where we are a little split. If you do breakup em, there is china and almost everyone else as far as how things have gone. China seems to have a lot of momentum behind the market but higher valuations it is probably justified based on how aggressively they handled the vaccine and get Industrial Production and retail sales on a more positive trajectory relative to everyone else. We still think there is still good value in em asia. We are still positive on china but we are adding more towards india where the virus has not been quite as well contained. Look across em south america, central america, europe, middle east and africa, that is where we could see bigger valuation discounts. That is always one of the challenges with em. Mix ofeally an eclectic economies and polities and policies. That is why our exposure is more on the active side trying to navigate the murky challenges across a lot of those countries. Host the strength you have seen in those em assets, how much of that has to do with the support they are given and how much of it has to do with earning potential . Rian they are inextricable to get the earning potential has required some of this stimulus. Interestingly, if you look at to yields in china relative the last 12 months, they are at the upper end of the range. Outt of the support coming of china has been on the fiscal side. That is very different when you look at other countries that have in aggressive on both the fiscal and monetary sides. We think that type of stimulus support will have a long tail. Optimism inved knowing how policymakers are watching the problem and supporting it. Monetary policy operates with long legs. We know that can have a longerterm positive affect. And not just a shortterm boost. That is one reason why we dont flash in stimulus is a the pan. It is a bridge from precovid to some kind of recovery after covid. Host 2 i like that image a bridge to recovery. Still to come, on daybreak australia. Doubling down on asia. Raising a second private equity of rounds. We have more details on that. Down on asiag according to people familiar with the matter. Raising at least 5 billion for a second fund focused on investments in the region. This would be more than double the size of the first asia funds. Bettingstone is clearly big interest in and asia by our buyout fund. It is seeking to raise more than double the size of its first bond. In 2018. Ion blackstone has been raising ever larger amounts of capital in large part because of a dislocation and other side effects from the covid19 pandemic. It is creating a lot more opportunities. Blackstone is following in the footsteps of some of the biggest players in the space. Is raisingr which 12. 5 billion for its next asia fund. There are other big players. Also raised large amounts in recent years. All of it is earmarked for investment in the region. According to those people close to the matter, lack stone could increase the size of its to mustek vehicle depending on the level of demand in the coming months. Host 2 we continue to talk about asia recovering faster than other regions from the pandemic. How is that creating an opportunity for deal flow . There has already been a pickup in asia deal flow and that appears to be part of what we are hearing. The marketing campaign. Which is already underway. The buyout firm is betting that asiaers appetite for will continue to increase as the region experiences faster recovery from the pandemic. Cominglready doing well out of the lockdowns. As that accelerates, they see a a lot greater interest because asia stands out from the rest of the world particularly the u. S. Right now. The asia deal flow is expected to pick up and could accelerate going into 2021. Many market watchers say. That have been halted are also expected to come back online in the coming months. There is a lot of interest. Blackstones holdings are in the consumer, health care, and Technology Industries which have all benefited from the rapid shift to online consumption during this pandemic period they and they have also benefited from the increased demand for medical services. Host su keenan in new york. Here is a quick check of the latest headlines. Firms the company is owned by city governments. They would buy equity worth more than 4. 5 billion in the Property Assets in china. Rand is also looking toe. The Wealth Management and Retail Lending services completed their u. S. Listings days before new chinese regulations but the stock has given up gains and is now a target for shortsellers. It is also facing u. S. Threats against chinese companies. Host 2 online retailer wish it has filed for an ipo in new york and is joining the rush of Consumer Companies this year. Trade on the select market. Goldman sachs, jp morgan, and bank of america are leading the offering. Time investorsst have been able to check the paper. The paperwork. 0. 5 gaining ground. We have seen strength in kiwi stock markets while futures are also holding higher. The aussie dollar not doing much but we have seen strength in Commodity Currencies including the kiwi dollar. Yen holding steady. Up next, the u. S. Moves towards plans to deliver its first covid vaccinations. We will discuss. 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The u. K. Is committed to equitable act was access for any vaccine. Korea will work in partnership with the International Community to put a complete end to the covid19 pandemic. We will marshal the forces to distribute vaccines and treatments. Haidi the leaders of the worlds biggest economies budging to ensure Fair Distribution of the covid vaccine. Lets look at the data and the analysis behind the latest bread. I want to bring Christina Ramirez who is a professor at the ucla fielding class. Does it feel like we are in a dangerous spot . A lot of people saying a vaccine is just around the corner. We might get one before the end of the year. At the same time, people have the social distancing, maskwearing fatigue. Exactly. Even with the vaccine, we have to remember that this goes look inthe poor we crowds. Whenever you have large gatherings, the more people, the higher the prop ability that at least one person is infected. Confined close spaces. Be more riskyways than outdoor. When combined, the probability of spread goes up. As the weather gets colder it forces people inside, they are like less likely to open doors and windows which makes spread more likely. Close contact is another one of the themes. And cleanliness. Cover your cough, your sneezing,. Ood hygiene even with a vaccine we still have to worry about these. Haidi with all of those measures you would hope people would continue to do it even after this. Aagine that we do have vaccine and that there is ready availability of distribution as well as takeup. How much afterward would you in locked down measures with social distancing and the like . Like theyre looking at 14 to 21 days after the dose. The data has been promising. Efficacyoking at 90 which is amazing. I would expect other vaccines. Ill have efficacy the real hurdles will be in regulatory hurdles. They will probably start with the mos