♪ haidi: good morning and welcome to daybreak australia. shery: good evening, i am shery ahn. top stories this hour. wall street on a roller coaster with new stimulus talks in washington. and actions and what that means for the recovery.

level deaths are approaching one million with record chain -- record cases in france and the u.k.. tiktok's band is due to take effect on monday -- ban is due to take effect on monday. shery: u.s. futures coming in at .2% higher after fluctuations. investors were weighing optimism over a stimulus package over rising covid-19 infections. we have the s&p 500 up .3%. hitby utilities, they session highs with new rounds of the economic stimulus measures. we had strong housing numbers. trip.com seeing third-quarter revenue down about 47% to 52%.

the forecast is not great when it comes to trip.com. yuan. coming in at 1.93 a little bit lower than expected. this as we continue to watch the markets, oil coming in .25% lower. we saw oil climbing to the highest stimulus hopes, but there were doubts over rebounding consumption as the pandemic cases continued to climb. haidi. europethat second wave and the u.k., one of the risks weighing on the investments at the moment. for the final friday session in nature, we are seeing modest gains when it comes to the future session. ing flat at the moment. because -- costing these

futures, we are seeing a modest open when it gets to the start of cash trading as well. we will be focusing more on the stimulus deal in the u.s. as well as any development of the vaccine on the virus front as well. the gross watching index in australia into a high relative to the broader index with a 3% jump this week into positive territory. we will look at if that trend, the rotation will continue given that we have seen australian the stocks stuck in a narrow range for the past two months. let's get more on the market. andrew smith joins us now. with the latest developments in the s&p 500, pretty much flat for the year with the gains we have seen in 2020, how much of a

danger is it that we are going to see a serious lip to the recovery story if the stimulus deal is not done by the end of this year? andrew: glad to be here. recent volatility really was to be expected. we see on top of the covid uncertainty with the second wave of cases, the lack of the monetary stimulus or fiscal stimulus coming online, the political uncertainty, geopolitical landscape. it is important to note that the massive liquidity that came into play in march with lower interest rates, we have seen the oecd with 30 countries, the breath of recovery starting to unfold. the risk asset spectrum will not have that same catastrophic event that we saw in march. haidi: the overnight session in the u.s. was ruled by investors what issed about

following. one of the threats that is picking up this week was the comment about the chance that the fed would raise rates before the 2% inflation is averaged over any period of time. is that a real risk event for markets that we can see policies tightening up at the end of this year? andrew: that is one of the biggest risk events. we are getting a lot of uncertainty regarding this new monetary policy framework. we have some commitments saying that they will not raise rates until 2023, but then we hear earlier today that we could potentially have raises earlier than expected, not allowing the inflation target run hotter than the long-term average. that creates interest rate volatility and it goes underappreciated, because once it spikes, where we are with equities is we get a repricing very quickly on that spectrum. have breaking news

that china will be included in the global bond index. it is a much awaited decision because they had rejected chinese bonds. they were going to be included in the government bond index, this will be an annual review happening and ftse russell saying that china will be included in the global bond being as china is reclassified from market accessibility level one to level two. this offering investors more ability to invest in chinese bonds. let's turn back to andrew. given the surge for yield and where you anywhere, going and where using opportunities -- where are you seeing opportunities?

story goingrecovery on in china and taiwan, the income potential is attractive right now. is economic activity continuing to accelerate. we believe that will lead to a global supply chain that will inifest in the united states 2021. we believe trades are taking advantage of this volatility in the economic beneficiaries such as industrials. they have that high correlation to the economic recovery story. we just need to get this political uncertainty, the stimulus, hopefully a fiscal paycheck, and have the uncertainty out -- net out. shery: given low interest rates, we saw u.s. home sales jumping very strong numbers, how deeply that -- how do you play that? that will believe persist on the shorter end of the curve, but do think there is

a potential for a higher than expected increases in long-term interest rates. we are looking for taxable immunity that is higher than in the treasury market. haidi: andrew smith there, thank you. let's turn to karina mitchell for the first word headlines. karina: japan is maintaining its assessment of the economy saying that conditions remain tough, despite signs of a pickup from the coronavirus. the report kept the same language for a third straight month while saying that it has been proven in four of 14 categories. meanwhile, the u.k. government issued a similar -- similarly gloomy forecast. chancellor -- the chancellor announced a program to subsidize wages for part-time workers to under lockdown

roles and to cut sales taxes for longer. unemployment is bound to rise as the u.k. economy adjusts. >> it is now clear as the prime minister and our scientific advisors have said, for at least the next six months, the virus and restrictions are going to be a fact of our lives. our economy is now likely to undergo a more permanent adjustment. administrationmp has been ordered to delay its ban on tiktok. the judge gave the administration until 2:30 to a pause. the administration says that more than a month ago, and is late to filing a new injunction. >> vote him out!

vote him out! vote him out! karina: president trump was met i hecklers as he and the first lady paid respects to ruth bader ginsburg on capitol hill. booing after he arrived, corrupted. he will announce his pick before saturday. global news 24 hours a day on air and on quicktake by bloomberg. powered by more than 2700 journalists and analysts in over 120 countries. i am karina mitchell. this is bloomberg. shery. recapping those breaking news, we had a couple of minutes ago, ftse russell becoming the last of the three to add chinese debt into their bond index. ftse russell saying that china will be included into the global bond index coming as analysts had expected this move to happen. this will be the highest level

of accessibility. keeping malaysia on watch for bond index exclusion, but when it comes to china, they will be included in the global bond index. rising andna is integration into the global bond market as well. at 10:40ave more later sydney time. if you are watching in hong kong, that is 8:40 and a.m.40 that was actually slightly narrower than what the average estimate on bloomberg had expected, we did get or details on when it comes to third-quarter revenues. we saw a contraction of 47% for trip.com to a contraction of just over 50%. estimated loss of 3.11 yuan.

slightly better than expectations of 2.37 yuan there. we expect to see a bottoming out in the second quarter from the impacts of covid-19 on trip.com, as we see chinese consumption and mystic travel and activity and domestic travel and activity resume. this is bloomberg. ♪

♪ the world will officially log one million deaths in the next few days, but the real tally might be double that. france and the u.k. announced its highest numbers since the beginning of the pandemic and the vaccine raise charges forward.

michelle, the death toll continuing to rise and new records we are seeing in the u.k. and france. >> there are new records in the u.k. and france and we know that that's our trailing indicator from coronavirus cases. we are bracing to hit the one million death mark from this novel virus and we know that it is actually likely much higher, as many as 3 million deaths we will expect to see from this, and that pace will continue as the virus continues to swirl. haidi: we see the vaccine raise heating up again. 10,000 patients in its late stage trials in the u.k. do we see a front runner emerging? where do we go from this phase of clinical trials? consideredither is

to be the leader at this point. the fact that novavax is starting their large phase three trials is good news because they are using a different approach. will beild's -- trials giving their vaccine along with a flu vaccine, so we will see how that combination is going to play out. they are tracking patients, as well. we are also hearing operation warp speed is funding additional trials, working in different ways. we are going to have a lot of different approaches when it comes to coronavirus, hopefully. haidi: michelle cortez with the latest on the vaccine raise in minneapolis. johnson & johnson has started its retests. officerf scientific spoke with bloomberg about the

beginning of the trial nearly two months after front runners. to includeoing 60,000 people in the study and it will be run in the u.s. and south america. people, -- diverse people, old and young, as well as african-americans and latinos who are more at risk. we have been able to show to our research and clinical testing earlier that the single dose will be sufficient to protect people. we will study the single dose in the next few months. >> you mentioned the elderly and african-americans and latinos. do you always take that into account, do you over index for those who are most vulnerable? >> yes, we are doing that.

we do that to find out where the u.s. we can find regions of very high transmission, but also population groups which are over african-americans, latino, and elderly, so we make sure that the risk groups are in the efficacy study. david: your approach is different from others as i understand it. but as i understand it, a version of the cold virus. what advantage does that give you? is it if occult to store this vaccine -- difficult to store this vaccine? toffel: we are doing a andy in over 200,000 people it has been approved. it carries a piece of the germanic terrio -- genetic

material of covid and the body produces a protein, which then generates immunity. months,able for three it can be kept for a long time degrees, then go into the field. it is a single dose, and hopef ully available on a large scale. what is most important is that this becomes effective 15 days after the first injections. that is important for the pandemic because it protects you must immediately -- almost immediately. when you have an outbreak somewhere, you want to be able to protect people fast. single-dose fast protection -- ofid: do you have any sense

a timeline about how long it will take to know whether it is effective as well as safe or not, or is that unpredictable? stoffels: it is unpredictable, but we will have havet up with people -- we what we want to see. we want to first absolutely learn whether it is efficacious, but also if it is safe. we will not stop the study until we have enough data to be sure ourselves to talk with the regulators to be able to use it. be earlyt that will next year. we are known early september. four or five months will be getting us to that point. haidi: the latest tiktok twist

sees a friday deadline for the ban on the app. that is next. this is bloomberg. ♪

♪ tiktok owner bytedance is working on approvals from authorities for the sales of its u.s. assets as demanded by president trump. the latest from our senior tech reporter. the twists and turns continue to emerge. >> we are in a holding pattern now. it is happening now is we are waiting on a lot of stakeholders. we are waiting for the trump administration to file something back to the u.s. courts in

bytedance's efforts to stop this ban, which will take effect on sunday. we are waiting for the chinese government to approve bytedance to approve the deal on their end, and that is not 100% for sure because there have been editorials in the media saying that they are calling this deal a sham or bad for bytedance. breathe is holding their every siegel day -- single day. we are waiting for a final decision here. shery: do we know what is happening with the actual deal? shelly: negotiations continue with the people in the u.s. government. the committee involved in hammering out the details, we -- they hadnally

not been involved before. did you get the sense -- we do get the sense that we are moving toward something but we are just not there yet. there, let's get a check on the latest business headlines. tiktok is pushing ahead to allow a cloud stream service and by next june. now -- shery: testing has began for technology to to launch. nicola nosedived after celebrating -- shares at 80% since june, and the company is under more pressure after tesla's battery announcement increases scrutiny.

resignedtive chairman with a loss of more than 50% this week alone. haidi: it is the end of the road for harley davidson as part of wider cutbacks announced on thursday. it is a further blow to the hopes of attracting foreign manufacturers, and indy's worst economic downturn in decades. india --ot expand in we have more news from ftse russell and its revision saying will remain's index in the stock index. ftse changing argentina's status to unclassified in its doc theew, earlier we heard highly anticipated decision that

china's bonds will be added to the ftse's global bond index. that set the start in october 2021. giving foreign investors or new channel to invest in chinese bonds, which had been beaten down this year. ahead continuing to look to implications of the market as both sides of the aisle in the u.s. are pushing for fiscal stimulus and that deal could be done. we look in the meantime at why officials are holding back on stimulus funds. and why that will pose unnecessary risk to the u.s. economy. coming up later on, we have big guests including goldman sachs of japan kathy matsui, talking about how women under the new japanese prime minister -- this is bloomberg. ♪ look here, it's your very own all-in-one

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muchdon't there is as about a new fiscal package as there might have been in july. >> some of the first speakers we

heard from this week on the need for fiscal stimulus measures. they have addressed several other key topics as well. topping the list has been the need for more's -- fiscal stimulus measures to bolster the economy. kathleen hays is here. federal officials are starting to sound like a broken record. that's because they are playing a tune that they don't want anyone to mess especially in congress. yes, so many speakers. every day, we had a few if not many and everybody but one already much that we have heard from said we can't continue to have a recovery if we don't continue to get more stimulus. that's the bottom line. charles evans of the chicago fed said they were assuming $1 trillion more of stimulus in his forecast for a good employment market. today, he said not providing more stimulus poses serious and

unnecessary risk to the economy. that is clearly a warning to elected officials. a representative from the dallas forecasthis focus -- is for percent by the end of the year. that hinges on virus control and also more stimulus. the chicago fed says it is very much needed given the deep hole the economy is climbing out of. look at the latest on jobless claims. this sums up what people are worried about. particular, fed policymakers. jobless claims have made an improvement, but that improvement has stalled out. the yellow line is 893,000 but that is a slight increase from the week before. before that, you see continuing claims. at the peak, millions of people unemployed for four weeks or more.

it is still over 12 million. we have to get those people back to work. the president of the st. louis fed told us on monday that he thinks that now compared to earlier in the year, there is enough stimulus to keep the economy going. andre seeing improvement the economy is not faring is not faring as poorly in the second half as people thought. all fed speakers are agreeing that we have to see inflation over 2% before we hike rates. let me and with racial inequality. the need to do more. the first lacked man to become president of the federal reserve bank, the president of the atlanta fed said today that racism is dragging down the economy and banks in particular by repairing their

use of black people who could not borrow over the years. those are the key to -- topics that the fed is clear on. made are reporting that -- be first in line as a woman to be u.s. treasury secretary. >> it's not the first time she was thinking she might get this job. let's start with the fact that she is at the top of joe biden's list and it would be a great move for him. he has a historic move if he gets the first female treasury secretary. on top of that, he needs someone who bankers feel comfortable with. you have to keep the progressive happy. looks get someone who cozy to wall street, -- many

people consider her well-placed for this job. someone who knows her says she told them that she would prefer the fed chair job if she could get it, but she is not going to turn down this job. in hillary clinton was running for president, a lot of people thought she was the slamdunk for treasury secretary. now this is perhaps chance number two. given herurprised track record that she is so much in line. >> thank you. mitch mcconnell says there will be an orderly transition of power after the u.s. election. he tweeted that whoever wins will be inaugurated january 20. this comes after president trump said the supreme court will likely have to decide the outcome of the vote. let's ring in our congressional

reporter for more. this is the latest that we have -- steady city narrative that the president has been building. >> this is something we have heard from him again and again. the white house has not produced any evidence to back up this claim. they have continued to say it and fears have begun to rise shouldhat might happen joe biden when the presidency. what would that transition of power look like? today, republicans came out to say they are supportive of a peaceful transition of powder -- power. mitch mcconnell said it would be an orderly transition. other republican senators told reporters that they expect any transfer of power to be peaceful. they did more than tweet and talk. they passed a resolution for an orderly transfer of power. it states that there will be no

disruptions to overturn the will of the people. >> if i'm not mistaken, i remember hearing something similar during the 2016 campaign when it was widely thought that hillary clinton would went. what do we know about the latest u.s. stimulus package? that has been turning markets upside down. there is a little bit of hope today. there drafting a stimulus proposal for $2.14 trillion that they can take into negotiations. the previous bill was over $3 trillion. democrats said we are willing to negotiate and go down a little bit. republicans want them to come down even further. that has been a sticking point for nancy pelosi. we will see what is going to happen with this bill. it could potentially restart negotiations. we heard nancy pelosi say today that she hopes to get back steve

mnuchin soon to continue negotiations. >> that was emily wilkins. now to karina mitchell for the first word headlines. has decided to include -- the date is still subject. thent reforms have made anticipated improvements required. ftse russell says malaysia will remain on its watch list for potential exclusion from the bond index. france and the u.k. have both recorded record daily numbers of covid-19 cases. france reported more than 16,000 infections. more than 6.5 thousand since mass testing began. passed 32cases have million with a death toll close to surpassing the one million mark. china says it remains committed

to defeating independence for taiwan at all cost. after a week that saw warplanes encroaching on airspace. the ministry says it taipei dares to separate itself, the pla will take action. they are condemning china's rising activity calling it the deliberate provocation and a dangerous act. lawmakers in bangkok have failed to reach an agreement for a way to amend the constitution potentially sparking more mass protests. backament overwhelmingly -- the means of rewriting the charter will be further delayed. 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. this is bloomberg. next, china has set

a pace for cutting pollution. this is bloomberg. ♪

>> xi jinping surprised the world when he pledged this week that china would go carbon neutral by 2060.

our next guest says it is game on for the rest of the world to catch up. guest coins us from washington. thank you for your time. before we turn to other countries, let's talk about china it. --y were supposed to go carbon emissions before 2030. what does carbon neutrality mean and how are they doing on their 2030 targets? >> there is no question the announcement made earlier this week by xi jinping is a game changer internationally and for china. that forutrality means a country like china, all the emissions put into the air will otherset by forests and ways of taking carbon out of the air. it will require china to ramp down there emissions significantly. to get very close to zero.

then make sure whatever is left gets taken out of the air. now, they have said it will happen sooner than 2030. they still have to put an exact date on that. the carbon neutrality pledge is for 2060. ofis a directional arrow where the country is headed. what are the significant changes it will have to make? china understands that we are facing a new world and new technology and they are ready to seize those opportunities. >> have we seen any signs of commitment from china when it comes to coal power financing? they can have climate plans, but coal-fired generation in chinese investments are so important. >> there is no question that you could have a long-term target

but not be on the road to get there. through to 2060 does go 2030. it goes through 2025 as well. what is china going to do in the near term? that is a question at home and in terms of investments abroad. we have seen some investments going to coal plants, oil refineries. they are also investing significantly in renewable energy and they are the world's later on renewable energy. meanwhile, they are also investing in other countries with coal plants, with other infrastructure. there will be an important question. what they are going to do with the 2030 targets, when do they peak their admissions? is it by 2025? are they going to ramp down the intensity of their emissions relative to gdp. these are all questions that need to be answered by next year.

of offsets in this equation overstated? they do have a flourishing qassem -- consumer offsetting markets. >> china is working to up -- set up a market trading system for emissions. going tohe question is focus principally at the outset on ramping down there emissions and energy. that is where the near-term opportunities are that includes continuing to build out there renewable energy sector. it also includes electrifying their vehicles. they are making significant strides in that direction. not only passenger vehicles, but also 99% of the electric buses in the world are in china. fast on thatrd front while they still need to not go in the direction of extending the whole footprint.

that is what is going to be necessary. this is obviously strong signaling from china. what about china -- australia where we have a country that is a very big fan of coal? >> it sends a very strong signal internationally. this is the first emerging-market country. neutralitycarbon goal to adopt that goal for themselves. not only does it send a signal for other emerging markets, it does so from major emitters across the board including developed countries like australia. in countries like australia, they are now on notice that the world is shifting. we are heading in a transformational direction. it is not one of a future of coal. it is one of renewable energy.

it is a future of electrified vehicles. it is a future of sustainable agriculture. these are all going to be the technologies, the approach to the future. in a country like australia, for -- it's to get on board not going to be to the economic benefit. it will be to the economic detriment to countries like australia if they are not moving down the same path. >> where does that leave federal u.s. policy? we have seen a number of states enshrining their commitments and legislation. is that also something that needs to happen in order for this to be, commitments like this to be held to account? >> there is no question in the united states that we would be much better off in the federal government moving on these issues. and taking this challenge on. at the same time, we are seeing

significant moves from the private sector. commit tow walmart carbon neutrality target. just yesterday, the state of california announced that it is going to require all new vehicles to be electrified by 2035. we are seeing a lot of change happening on the ground in the united states. i think it's going to continue driving forward. of course, having a federal government be able to add to that would also be an important step. >> we appreciate your time. still to come, an online service portal is seeing losses. travel is picking up in china. an exclusive interview coming up next.

live fromadcasting hong kong. plenty more ahead. this is bloomberg.

>> trip.com reported a second quarter loss narrower than estimates thanks to a pick up in chinese demand for travel.

>> it has fully recovered. we look forward to healthy growth in the industry. >> in terms of the nature of leisure, visiting france a family? when does business travel come back? >> leisure in the nearby cities comes back first. are the mostthese frequently visited areas because people need to do something to relax during the weekend. weekend, we long see long-distance tour which normally would take three hours by flight.

for us, it needs to be to wait a little bit longer to go. because of the june meeting, people are more and more used to being able to take -- to conduct business. however, the pent up demand is very strong. inave seen a strong pickup corporate travel already within china to visit between major cities to connect for business meetings and face-to-face meetings. again, i am just curious. i am fascinated -- fascinated to hear that business travel is coming back. in the united states, we are certainly not talking about that yet. we are desperate for. in terms of the way this process is discounting

leisure travel first then we get into the high-yield business travel further down the road. is that the way elsewhere in the world you would expect the man to come back? >> that is correct. self-driving nearby travel come back first. then long-distance leisure travel first -- next then business travel. people are becoming less and less price sensitive right now. of the long-term effect of all of this, what do you think it's going to be? do you think there will be consolidation? changes in the travel industry will have a longer lasting impact? >> what we have seen is the strongreally made business which does not have sufficient reserve financially

be very difficult for them to sustain. however, for companies that were prepared with strong balance sheets, they will be able to do very well to weather the storm well. believe thed, i pent up demand is still very strong. we used to send 150 million people out to other countries. because they cannot go abroad, now these people are converting to be high end users for five-star hotels for the majority of the brands and they are doing a lot of shopping within china right now. consumer power is there. the pent up demand travel abroad is there. once the border opens, we are going to see if developed, i think the pent up demand will be able to bring people abroad --

>> that was the ceo of trip.com. $250d airlines will offer forhe spot covid test travelers heading to hawaii so they can avoid the 14 day quarantine. on -- if theyng can show a negative test result in 72 hours. the new rules begin in mid-october. indonesia's biggest low-cost carrier is being sued in london for late plane leases. almost $22 million in outstanding cost. the leases involve eight jets operated by them and their affiliates. another carrier faced a similar lawsuit. the world's most indebted

developer is warning of a looming cash crunch unless authorities approve its stock exchange listing. it has until january to win approval for a listing or key investors will be able to exit leaving the company with a $19 billion debt accounting for 92% of its available cash. markets are looking at the moment, futures are all higher u.s. futures gaining after we saw u.s. stocks holding onto gains in the new york session. kiwi stocks now gaining ground and reversing yesterday's losses while aussie futures are also higher. nikkei futures gaining. we see the japanese yen holding steady all week. withg up, we will speak the wells fargo ahead of security strategy about the security market.

come. more to this is uber. -- this is bloomberg. ♪

verye: haidi: -- haidi: good morning. i am haidi stroud-watts in sydney. shery: our top stories this hour, asia looks set for tentative gains after a roller coaster ride on wall street. markets are weighing possible stimulus talks. u.s. stocks jumped on hopes of a resumption before that optimism drained away.