shery: "daybreak asia welcome to "daybreak asia," -- welcome to "daybreak asia." i am shery ahn. haidi: i am haidi stroud-watts. our top stories this hour, asia looks set to extend the global rally after widespread gains led by financials. wall street snapped four weeks of declines. new details emerge about why a court block to the tiktok van in america -- ban in america.

the trump administration overstepped its authority. ntt reportedly planned to take its wireless carrier unit private. at buyout could be valued $38 billion. at thebreaking news moment. we are getting industrial production numbers for south korea. year on year, it should be for the month of august, a decline of 3%, matching expectations, and bigger declines than the previous month. we continue to see some weakness year on year. industrial production numbers have been in contraction for five consecutive months. when it comes to the previous month numbers, they have been revised slightly upwards but not by much. month on month, a contraction of 0.7% which is a contraction instead of just coming in flat as expected so that is disappointing numbers. perhaps we could see some better numbers later in the year. we do have trade numbers for the month of september. we are expecting it to come up on thursday and exports are

likely to see an annual gain in september so let's watch out for those numbers as well. in the meantime, here is a quick check of how markets are trading at the moment. u.s. futures gaining .2%. this after we just saw the best three day gains in the s&p 500 in the near obsession since april. nikkei futures gaining .2%. watch the japanese yen. bullish en positions have reached a record high last week also we have seen some weakness in the japanese yen which has sent the nikkei higher. the best day in a month. kospi futures also jumping 1.4% while we have sydney futures gaining .6%. in japan, watch out for ntt because they are now coming out saying that nothing has been decided on ntt. and they will hold a board meeting today. the board meeting today will disclose if needed. they will make an announcement if the board makes any decisions.

remember, this of course as we had heard from local media. the nikkei saying entities plan to turn them into a wholly-owned subsidiary. the company also confirming that they will be holding a board meeting, that the board will discuss ntt's buyout today, but ntt saying nothing has been decided yet so we will be watching that stock as the japanese markets open at the top of the next hour. haidi. continuing to watch emerging markets price action as well with more reasons to be more cautious in that space and optimistic as we enter the trading quarter later this week. we have a number of risk factors encouraging investors to take more defensive stance and stick to safer bets for now. a headphone fun focusing on companies,idsized em julia hermon joins us on the line. seems like sentiment when it comes to ems turns on a dime. at the same time, you have a

strong china rebound. you have weak dollar background as well but at the same time, we are becoming concerned about potentially said tightening rather than they expected a second wave so which narrative do we focus on? all right. we do not seem to have julia at the moment. we will try and get back with her of course, but let's get you the first word headlines in the meantime. the u.s. may put more sanctions on iran to further distance its economy from the outside world. it may target at least a dozen banks and they bought the entire financial sector off-limits. iran's economy has been crushed by u.s. sanctions and further moved to leave it isolated from the global financial system. joe biden says he will return to be 2015 nuclear deal if you wins in note -- he wins in november. the white house will have to accept much more spending if there's to be any hope of a stimulus to deal before the election.

they hope they can bridge the gap between them to bolster the economy with the democrats pushing for more than $2 trillion of new funding. president trump does not want to go further than $1.5 trillion. ecb president kristin lagarde says policymakers are ready to deploy more stimulus weapons to aid the euro zone recovery as the coronavirus continues to weigh on prospects. thewarned lawmakers that future remains uncertain and incomplete and consumers are cautious about spending and investment. she says the ecb stands ready to adjust its range of policy instruments as appropriate. the e.u. says it will not abandon brexit talks with the u.k. even if boris johnson's government retains its plan to break international law. the two sides resumed withdrawal talks in brussels despite the u.k.'s attempt to rewrite parts of the divorce bill. the e.u. says it will continue to talk but that it also renewed his threats to take legal action against the u.k. as the clock ticks down to a no-deal split.

china's imports of u.s. goods in the first eight months of 22020 -- less than a third of the total target set for the year in phase one. beijing promised to spend money on goods and services next year and this year but has managed just 33% of that overall goal. soybean imports were under $4 billion in august compared with $14 billion back in 2017. let's get back to our conversation at hand. let's try and bring in julia hermon again from the senior global strategy analyst. .lad we got you back which narrative do we focus on when it comes for prospects for e.u. -- for ems? do we look at the fearfulness of quicker than expected fed tightening and the waves of virus cases that are taking over again? julia: thank you for having me.

i do think that the emerging markets narrative is still very much about stability and resilience. we were quite constructive on the north asian economies of korea, because they were formulating the most coherent policy response to the virus. over six months later, that still does hold true. regarding the korean ip numbers and the fact that china is still of the only major economy expected to grow this year, it is a function of the fact that the rest of the world is not catching up much and that is really because it has been manufacturing that has led the global recovery so far. where within the em space do you see the resilience when it comes to consumer led recovery, particularly if we are looking at countries that are going to have to rely on their domestic audience and the domestic demand to do the heavy lifting? that: i do think that

comes from north asia still and that's primarily because those economies have been the ones able to truly reopen and harness that services side of the economy. another small emerging-market to highlight which i think sits rather in a good position between the manufacturing and a large domestic market is actually poland, which has been resilient this year. talked about you manufacturing, but how much of your north asia call also reliance on the fact that it is these north asian countries that actually have more new economy stocks, whether it is tencent, alibaba, or samsung and chipmaking, and tech companies in taiwan? i do think that tech sits and a nice position between -- to distract a little bit from the manufacturing story, but it helps deliver some really smart services to consumers. whole text, there's a host of options.

there's e-commerce, simtech, communications. the services that have thrived in covid have tended to be textbased, excuse me. north asia benefits from that. shery: let's talk about some of the challenges. whatever happens in the white house and the elections in november, it seems a certainty by now that the tensions will continue to build. if you have more bifurcated tech intranets, how will that challenge the rally we have seen in north asia? julia: absolutely. i do not think the tensions are going anywhere. this week hasws established the u.s. has the upper hand on the tech side of that relationship but i think china really excels at playing the economic long game, meaning

short-term decisions are in line with their long-term strategic ofls and they have a lot incentives aligned domestically. xi jinping has rallied the chinese private sector. some investors are not necessarily as aligned. hermann, great having your thoughts. we will discuss our tensions with china will play into the first u.s. presidential debate when eurasia group analyst eurasiaroderick -- with group analyst kelsey broderick later this hour. the latest in the tiktok showdown, next. this is bloomberg. ♪

>> the judge who blocked president trump's ban on tiktok, said the u.s. government failed to provide enough evidence that

the social media apple is a threat to national security. the latest on the tiktok saga, let's bring in stephen engle. taking a look at these court findings, what is the biggest take away? quite a vindication for bytedance. stephen: there were similar rulings as well within this one from chronicles, the district court judge on tiktok as well as the laurel ruling on september 19 on wechat. both of these judges prevented the bans on these two chinese apps from taking place. the latest one is chronicles on tiktok. .- carl nichols on tiktok the ruling came out just before midday yesterday. they were sealed. classified content in there. government position to have

it revealed. it is quite revealing actually because both cases, if you are talking about tiktok and wechat, the judges have found there was ample evidence provided by the u.s. government of china being a national security threat. however, they could not make the case adequately that these particular apps come in themselves, were threats to national security. this is what the judge said. the u.s. provided ample evidence that china is a risk to national security but added that the governments evidence of the threat posed by tiktok remains less substantial. there'll be a letter, in her ruling on september 19 on wechat, she used the term scant little evidence. bytedance, the parent of tiktok, would have likely succeeded in proving the trump administration exceeded its legal authority. the emergency powers invoked by donald trump don't allow him to

prohibit information materials and personal communications. that is what is in his findings. given that tiktok is mostly used to share videos, photos, art, and news, it is not plausible, wrote the judge, that only that kind of content would fall under the espionage act. this saga is not over. second trump executive order that was issued on august 14 has a 90 day period tiktok tiktok for the bytedance to sell's u.s. assets to a u.s. entity. u.s. assets to a u.s. entity. the battle between trump and the chinese apps makers goes to the chinese. the tensions continued between the u.s. and china, as you mentioned, how important will the next economic blueprint from beijing be? we know that those dates for when they will drop the plan are out.

october 26 to october 29 will be the conclave in beijing. centralonest party committee will meet to draw up its next five-year plan from 2021 through 2025. that will be then ratified at the upcoming march national people's congress, but it is a critical five-year period, obviously, as we are coming through what some say might be a decoupling or even as far as a tech cold war with the united dates. -- states. been pushings domestic innovation and consumption. how does that mesh with the five-year plan going forward and what are going to be the economic and social priorities? what is interesting about this five-year plan is that the news agency is indicating that the central committee, the top leaders, 200 or so top leaders in the chinese communist party, will also be coming up with a longer-term blueprint through

2035. that is interesting because in 2018, president xi jinping pushed through changes to the constitution to allow him to be the president essentially in perpetuity. that brings up more speculation whether indeed president xi jinping wants to go beyond the term that expires on 2023. haidi: stephen engle there. coming up next, it could be the largest ever tender offer in japan. ntt taking its wireless carrier unit private amid attacks on profit margins by the new prime minister, yoshihide suga. this is bloomberg. ♪

shery: -- says as board will meet later tuesday to discuss the reported buyout offer from parent entity. they may take the unit -- ntt.

they may take the unit private. let's get more from senior editor -- in tokyo. what do we know so far about this deal? >> good morning. as you say, just before we came on the air, just now, docomo and at confirmed the deal will be matter for discussion at board meetings today. basically, saying that ntt, the docomo, owens 56%, but they were going to buy out the unit, even though they already own so much. it would be the largest tender offer ever offered in japan. the nikkei estimated it could be worse about $38 billion, and that is just based off of the standard for the 30% premium for

the shares based on the closing tokyo. not a lot of speculation about this deal. came out of nowhere last night. we will have a lot of ramifications on chicago's market today. haidi: what is behind the timing of this deal? the mosti think obvious thing we can point to is the new administration in japan. the administration of prime minister yoshihide suga. abe,he was secretary under he was well-known for attacking the profit margins of japan's mobile carriers. the profit margins are quite attractive, quite extraordinary. he campaigned over the last several years for the mobile carriers to reduce the fees that .re paid by customers in japan

one government survey, around six cities around the world. they found that data heavy users in tokyo were paying more than three times for their monthly mobile bills. make a taxued to carriers made from concessions to him. primehe became minister, he was reducing mobile bills and that was one of his key policies and it seems ntt has decided to bite the bullet and take docomo private. haidi: gearoid reidy in tokyo. business flash headlines this hour. huawei's cfo resumed her fight against extradition from canada claimsu.s., saying -- are so flawed they should be dismissed. she is accused of tricking hsbc

into processing transactions that left it open to violating those sanctions. is counterp lvmh suing tiffany over a planned purchase. lvmh says tiffany has mismanaged its operations, justifying its withdrawal from a deal. the two sides have declined to sit down and discuss the issue. j.p. morgan has told thousands of staff across its consumer unit that they continued to work from home. -- they can continue to work from home. unit is the bank's biggest and employs 22,000 people. shery: staying on j.p. morgan, the bank is moving about $230 billion from the u.k. to frankfurt in a shift that will make it one of the largest banks in germany. j.p. morgan's head of banking movemea told bloomberg to

will happen with or without a brexit deal. iswhat we have done undertake those kind of moves we need to do to be functional as of january 1, and really, we are with baited breath waiting to see a brexit manifested itself and what does it mean for financial services and the like? in terms of being ready, we are absolutely prepared for every outcome. >> even if there is a best case reo, a trade deal, how much of an exodus would we see in general out of the city of london? depends on really what it looks like and what you are able to continue to do and not do. -- it's a major global liquidity center. it's relevant as it relates to being a major money center. it is still going to be kind of strong and it is not going to be, you know, entirely

demolished, but it is inevitable, you know, depending on what it looks like and what we are able to do otherwise as it relates to e.u.-facing clients. you will see some activity move to ag. in our case, the german legal entities will be our flagship pacing entity so depending on what we are allowed to do, you will see an element of activity kind of migrate to the continent. >> in terms of the amount of revenue j.p. morgan actually does in the u.k., will it be 20% to 25% moving to continental europe? or would it be less or more? >> i think it is difficult to put up for tice -- put a precise number to it. it's a function of what activities are you going to be allowed to kind of execute from being based in the u.k.? if you take a primary transaction where you look at the distribution of a primary deal, if you take an ipo or equity placement, the typical

distribution profile tends to be around, you know, 20% to 30% u.s.. emea.se, 20% to 30% and then you end up with a portion for the rest of the world. if you look at that activity, a lot of liquidity sits in these kind of money centers in the u.s., in london, and in asia. precisely to qualify but it's going to be entirely dictated by what are you going to be allowed to do in this post brexit agreement? >> is 25% something that sounds about right, or are we off the mark? viswas: you know, you are in the zip code. i would say it's a reasonable to monitorou need exactly the nature of the activity and what you can london ando from

what actually migrates to the continent. >> how difficult has the pandemic actually made the shift to the continent? know,: look, i think, you it's clearly, you know, for most folks, it's an element of mobility when it was left to the final stages, and clearly now, and the pandemic quarantines, etc., it imposes kind of extraneous restrictions on that mobility. clearly, what we are looking at is to be very open-minded and flexible so that we can provide accommodation for the employees that are affected and make sure we cannot take care of travel, and really have some kind of forbearance in making sure that our experience for employees is as smooth as possible, and likewise, the key focus is for our clients who really see a seamless j.p. morgan really, you know, not in any way impacted by

internal kind of mobility-led initiatives. >> coming up next, we will be discussing how china plays into the policies and strategies of the trump and biden campaigns with kelsey broderick. this is bloomberg. ♪

haidi: we are getting breaking news crossing the bloomberg when it comes to tokyo cpi. we don't expect this to move the needle when it comes to the bank of japan but we are getting the september core consumer prices , just in at a follow .2% marginally better than expectations of a contraction of .3%. the overall consumer price index for tokyo in september rising .2% year on year. excluding fresh food and energy costs. we see that inflation picture unchanged. we see the bank of japan really just continuing to push the boundaries of its extraordinary

monetary policy, and we have it particularly in light of the lockdown affected pandemic period, have not seen price pressures being able to rise. let's get you to karina mitchell with the first word headlines now. karina: china's leaders will meet next month to finalize their latest five-year plan has president xi prioritizes innovation and domestic demand to counter the threat of decoupling from the u.s. said there was a central committee meeting to discuss developing goals from 2021 to 2025 as well as longer-term goals. that spark speculation president xi intends to stay in power beyond his normal term. masskong has banned a protest for thursday, rejecting an application for a rally across the city. last year, more than one million people marched against the legislation which led to the bill being dropped. however, authorities repeatedly rejected applications for protests, imposing a sweeping new security law.

is reserve bank of india postponing this week's schedule policy meeting amid rising virus infections and a consequent slowing economy. the monetary policy committee had been set to discuss its next move today and tomorrow and new dates have not yet been released. the modi government has been struggling with the deepest slowdown in decades as well as with rising trade and border tensions with china. and the u.s. is being warned it will not reach its potential unless society addresses gaps in economic opportunity. loretta mester says citizens do not have an equal chance and the coronavirus has shown how vulnerable communities are adversely affected. unless action is taken to promote an inclusive economy and end systemic racism, the u.s. will never achieve its goals. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. president trump's ban on

tiktok was temporarily blocked by a federal judge who said the u.s. government overstepped its legal authority. this coming at a time when the u.s. imposed restrictions on chinese chipmaker smic, marking further escalation in the rising tension between the world's two most powerful economies. that's bring in kelsey broderick . great to have you with us. these are just two fronts in this tech battle, not to mention the entity list with huawei or human rights issues over uyghur muslim's or hong kong. -- uyghur muslims or hong kong. do all of these fronts where the u.s. is really sort of having issues with china make sense now given that we are just days away -- weeks away from the election? >> it seems that trump has been determined to keep up the pressure on china even up to the election. he is really hoping to use his strengths on china as an

important selling point as he goes up against joe biden who he has accused of being soft on china. is not yet clear if voters will respond to the tough on china policy. it has been somewhat controversial. it seems as though he will be touting accomplishments in tech and on trade in the upcoming debate. >> when it comes to the demands the president has made, whether it is on tiktok or wechat or huawei, how much of what he wanted to see, especially when it comes to securing national security, how much of that has been achieved? kelsey: he is taking some steps towards it. it will be challenging. we are seeing that right now with tiktok. .e is progressing fairly far part of that with the latest action is making sure that u.s. companies are not going to be providing input or will be providing fewer inputs to china's fledgling semiconductor industry and that was a really important one for trump and his team. he has made some strides there. we will continue to see actions related to that or additional chinese companies in that space

on the entity list as he continues to wrap up the sort of decoupling measures that he really hopes to push through. haidi: to what extent has the trade deal and some of those commitments as we continue to see china falling behind in demand become less relevant going into november and post november, depending on what the outcome is? kelsey: as things become less relevant to voters, is not in the news as much as it used to be. we refer to the trade deal as a zombie trade deal, meaning it sticks around. it will be here through january. really, nobody is living up to the commitment. it has not achieved a whole lot. i think it is important for trump. it is a signature accomplishment of his. there is very little incentive for china to withdraw and have tariffs come up again and essentially do away with years and years of negotiating. the deal is -- nothing much is happening. the purchasing is not hitting

the incentives. it's going to linger on for the next couple of months. if a biden administration comes in, it is something we will have to think about. >> we have not heard a great deal in terms of the drivers and direction of foreign policy for a biden administration. what are the implications for potentially a re-pivot to asia? potentially more areas of cooperation with china? kelsey: it will be interesting for the biden team to take the helm because there is a definite bipartisan shift that is slightly more anti-china and particularly on foreign policies are china's actions around hong kong, the south china sea, taiwan. biden will be under pressure to keep up the pressure the trump team has put on china. it is likely they go about it in a sightly different way. you may see less in terms of unilateral action and more in terms of a return to allies and multilateral partners and focusing on pushing back against china in a joint collaborative way with joint statements, visit to the region, some stronger presence from the u.s. under a

biden administration. certainly, they will have to keep up some of the pressure trump has put on when it comes to sanctions and art measures, push back on china when it comes to human rights like in xinjiang. they are still playing largely from the same playbook as trump. shery: when it comes to those alliances you talked about that biden would make, how much more effective could that end up being? kelsey: we will send a strong message to the region about the u.s.'s intentions for asia and that cannot be understated. that is something that has been in many ways lost and something that a lot of u.s. friends and allies are looking for. it is an important symbol to them for their security and economic ties, and generally, the u.s. plus commitment to freedom and democracy. that will bring that back to the table. i think it is rather important. we will see if those kinds of measures can be strong in terms of pushing back on china as some of the trump measures have

been. they will send a different message about what kind of u.s. it is going to be for the next four years. shery: with the election noise, how much of an issue is right now the rising china-taiwan tensions? we have seen more chinese military incursions. kelsey: it is an issue. it is absolutely a tail risk. the u.s. is pursuing a much stronger relationship with taiwan. that is commercial. the announcement of a new economic and trade dialogue. it is increasing. china is responding to that negatively. either sides that could miscalculate. we could get an accident, longer standoff. to be't consider this anything either side would do intentionally at this point. neither side really wants to be in a war. there certainly is a much higher

risk, especially if the trump team looks into the election, the period afterward, and considers exactly what they want to do with taiwan. it is on the path of a much more assertive and bullying foreign policy. haidi: we have seen the relationship between australia and china as one example of a middle nation we are that relationship has deteriorated to the worst on record. if there is a mending of ties between the u.s. and china, is there more hope that we can see some alleviation of those pressures for america's allies as well? kelsey: it is a possibility. in some ways, the way that china has acted towards some countries has been taking out some of its frustration with the u.s. on those countries, which they have called proxies of the u.s., criticized their alignment with u.s. policies, trump policies. to the extent the u.s. and china have a recalibration or set of ties, that could loosen the pressure on some of these other countries.

they are independent countries and they pursue -- they have been pursuing much stronger and more assertive china policies themselves, pushing back on areas like covid-19 and on huawei and human rights. to that extent, there will be some level of tension for the next six months, couple of years , as they find a new balance in their china relationship, much like the u.s. is doing as well. haidi: appreciate your time. kelsey broderick from eurasia group. still to come on "daybreak asia ," we get the latest in the virus situation in the u.s. as the trump administration plans testnd 150 million rapid kits to the states, urging they be used in schools. this is bloomberg. ♪

>> president trump is warning americans to expect more coronavirus cases in the weeks ahead as the u.s. prepares to dispatch tens of millions of rapid tests that the states. it comes as worldwide cases continue to rise with deaths on the brink of crossing one million globally. michelle cortez has the latest on the pandemic. so who will get the rapid tests in the u.s., and how much of an impact will they make? michelle: president trump is using these tests as part of the effort to get -- open and help nursing homes and other joint living communities operate successfully and control the

outbreak of coronavirus into places like nursing homes. the question of how big of an impact it is going to have is really a little bit unsure at this point because we are talking about 100 million tests in the next couple of months, 150 million total. when you parcel that out across the united states. that does not add up to an awful lot. it's a matter of taking action once we know how much is president and whether or not they are infected. it's what you do after you have the knowledge of whether or not they are infected which is really going to make a difference in terms of how fast the virus spreads. shery: it is starting to get chilly in new york. what will the winter look like? michelle: we are starting to see increased cases and along with that, we are expecting to see an increased rate of hospitalizations and ultimately deaths. there has been a lot of reassurance this summer because although cases have been increasing, the deaths and hospitalizations did not get back to the same level that they

were earlier in the outbreak. we are starting to see some signs that that actually is changing, and we will be seeing more hospitalizations and deaths as the virus continues to circulate particularly as well indoors and then winter, and closer quarters, without that heavy humid air kind of bringing the virus down and making it less transmittable. shery: we will have to brace ourselves for the colder months. michelle cortez there. coming up next, the virus pandemic is causing some to view japan's low growth, low interest rate economic trend as a potential model rather than a cautionary tale. we will explain. this is bloomberg. ♪ ♪

shery: japan's economic management style could end up being a model for the world rather than a cautionary tale. despite high debt and decades of anemic growth, the country both loan and -- low unemployment and some of the highest living standards on the planet. our economy reporter joins us from tokyo. why do japan's lessons matter today? >> thanks for having me today. the rest of the world, especially developed economies, they are increasingly looking like japan.

the high growth is coming to a halt and governments are scrambling to borrow money. more and more, and do whatever it takes. the current conditions make you wonder. what are the pros and cons of the japanese economic model in the wake of the pandemic? to focuse, if you want on the positive side of this, i will say japan's jobless rate is still below 3%, which is like a miracle given the scale of the economic damage. for one, that is because companies are increasingly conservative and they have been saving a lot of cash to preserve jobs on rainy days like this, but the downside is that the government has to borrow a lot. the debt to gdp ratio is way over 200% already.

and also, you know, that inflation is just not happening relativend you know, stability in the labor market comes with the fact that, you know, you cannot expect wages or fast growth. stability is good. borrowing byp by the government. shery: the story that you covered is great and our viewers should check it out. one of the things that caught my eye was some of the challenges that some japanese people are facing. you describe one person who just got let go from the pandemic and this as we have more contract workers in japan. you have a huge gender gap. tell us a little bit about that. yoshiaki: thank you for pointing that out. i am so glad you mentioned that. side of the japanese economy i mentioned applies to a handful.

at 40% of the labor market in japan, the 40% of the labor force -- part-time workers. over the three decades of so-called lost growth, the companies have been trying to save money on people, so those workers are the first to be cut in a downturn like this. when the recovery cut comes back, they will be added. they are kind of being used as an adjustment tool to wade through the economic -- really appreciate you joining us. japan economics reporter yoshiaki nohara there. a quick check of the latest business flash headlines. alibaba rose as analysts

reiterated bullish prospects after an investor day that reinforced perceptions of potential for growth. they have an outperform rating on the stocks, saying alibaba continues to see multiple expansion opportunities while jeffries says -- due to strong user engagement and huge openings and lesser tier cities. the investor invent content -- event continues. legislation to reform aircraft manufacturing in the wake of the 737 max grounding. it would tighten the faa's control over boeing and other companies and their ability to let their own employees sign off on plane designs. the bill is backed by both sides of the aisle on capitol hill. uber shares jumped on reports it is considering buying a ridehailing venture by bmw and mercedes parent, daimler. interest inpressed the program after the venture struggled to gain traction from investors amid the coronavirus pandemic. the mw and dime emerged their mobility operations last year.

shery: electric vehicle brands jointly owned by volvo and its parent company. in february, it unveiled a new model called the precept and began taking orders despite having no concrete plans for production. thepoke to its ceo at beijing auto show and asked about orders for the precept. wase did not see that there people holding back and saying -- that was not the effect of people who were so committed to preorder it. not anyreally different. we will see now we can slowly get into the phase where rebound of reservations, we work through. we will see over the course of the next months when it is really about people who now test drive the car, how much that

will be according to our plan. >> as part of this plan, you will be setting up a new sanctuary in china. can you flesh out that plan for us? when is the factory going to be up and running? what is the timeframe? about, i will tell you our plant, but those facts and figures will be different from the ones that you might have asked for. the facts that are connected to this, that will be a -- we would love to talk about, we are very open about it. building this again, making this now a greenfield situation where we respect from the very beginning that the production of the car puts quite a high burden on co2. we want to start and make that footprint a very low one. ,hat means having green energy renewable energy, as the energy

that gets in, working from the moment with suppliers to get exactly the same on their side. that is all connected to this. that will not happen overnight. so obviously, building the factory, engineering this car, yes, this will not be happening in one year or two years. there will be three or a little bit more. >> how do you frame the competition? it has a much bigger footprint. you do go toe to toe with tesla. how do you frame that competition? thomas: i frame the competition that way. competitionrt of where two people try and achieve something, run faster than the other, whatever, and by that, really push each other to extreme results. good results. is important for the ev market. we all have a big mission and that is move to the electric

age. the more you do that in a convincing way for the customer, you get great achievements. the better that will be for the goal. >> what is your priority in the markets? thomas: we are in three regions. we have in europe, country by country to expand. is switzerland and i'm sure we are adding a couple of countries more. no smalls., canada is part as well. in the north america region, and in asia, we definitely have plans from china to move into other really easy-ready countries, i would call them, to expand. that might be very local town states that might be as well as bigger countries. you have to be very selective. -- it is not homogeneous. you might have to find the spots

to sense. shery: that was thomas ingenlath speaking to our colleagues, tom mackenzie, at the beijing auto show. we are getting breaking news from air new zealand. portion ofn down a its government loans, saying they will draw down on an as-needed basis to deliver costs with 790 million kiwi dollars remaining in the government lending facility. air new zealand has reiterated that all full year 2021 models suggest it will be reporting a loss. just one of many carriers across the world impacted by the grounding and restrictions on borders, coming from the pandemic. they are unable to provide a specific year 2021 guidance. we heard earlier last week that air new zealand is expected to proceed with the capital, raising the first half of 2021 as the company continues to really work out a range of scenarios on how it will be impacted by the ongoing

pandemic. we are hearing now revived talks about the travel bubble between australia and new zealand as well as japan to be considering a bubble with countries including new zealand. let's look at how asian markets are faring as we saw of course that rebound, broad-based rally across u.s. stocks, setting a pretty favorable tone. see new zealand trading flat at the moment, erasing some of the earlier gains. overe some concerns corporate news such as air new zealand. we mentioned briefly before sydney futures pretty resilient. we expect to gain of .7% at the cash session. at that open. just in the next few minutes. bk looking pretty positive. futures trading up by 1.4%. coming up on the next hour of "daybreak asia," we will be discussing the impact of the pandemic on food security and supply chains. the commodity analyst will be joining us, plus we will be with the capital and -- the head of asian strategy, who will be with

us. almost upon us. in tokyo and in sydney in the next few minutes. this is bloomberg. ♪

haidi: welcome to "bloomberg daybreak: asia." asia's major markets have just open for trade. bloomberg's world headquarters, our top stories this hour. a set to extend the rally after widespread global gains led by financials. futures point arises in tokyo, sydney and hong kong after wall street snapped four weeks of declines. nt thierry plans to take its wireless unit private and what would be japan's largest tender

offer ever. the dell, i'll would be valued out would be valued at $30 billion. themerica the court says trumpet administration likely overstepped its authority in the tiktok band. haidi: japan, south korea and australia coming online starting the trading day. receive pressure for the nikkei and -- we see pressure for the nikkei and topix. the nikkei coming off its best day in a month. shery: the japanese yen has held steady at 105. we heard from the boj releasing their summary of opinions for the september policy meeting. their bias is toward easing. take a look at the kospi, getting 1%. wo asn seen the korean the top-performing past month and we can see in -- continue to

see strength for the korean won. we also had industrial production missing estimates and contracting. haidi: let's take a look at australia. it is a light down the docket. we are looking ahead to the presidential first debate tuesday night in the u.s.. that will set the tone for further gains or risk aversion potentially to come. we are seeing gains of .2% when it comes to trading in australian shares in the first few minutes of the open. the aussie daughter -- aussie dollar is holding steady, and we are seeing a criminal gains against the weaker u.s. dollar backdrop. it had been tracking u.s. futures steadily. the aussie 10 year yield pretty steady the moment. take a look at new zealand. we had discouraging headlines from air new zealand earlier. we are seeing kiwi stocks down,

flat, erasing earlier gains. shery: let's discuss what is happening in the markets with the head of asian strategy at macquarrie capital. we have seen this global rally after a breather in the last couple of weeks. the question of the day from our log. which of the best equities to figure out which way stocks will go? >> i think the most important issue is disinflation/inflation. for two decades in a largely disinflationary world. the question is, all of this fiscal and monetary stimulus we have injected, will it create inflation? the more inflation you have in a system, the more inflation comes through, the more value stocks are likely to rebound. so that is a key question,

disinflation to inflation. are we still residing any this inflationary world -- d isinflationary world? ,f so, quality growth thematic's will continue to perform as 20 years. the instruments you look at. shery: victor, what about the narrative of the pandemic resilience stocks? like the tech giants? the new economy stocks? i guess the old economy sectors across markets? >> well, that is your longer-term argument. this is the argument of intangibles eating and consuming tangibles. there is no question the old economy is gradually dying. and the value of those assets is gradually will be deteriorating over the next 5-10-15-20 years. so intangibles which is new

economy, will get stronger. but that is a longer term view, rather than just looking at what happens over the next 3-6 months. if you are a long-term investor, i do think what should be positioned -- one should be positioned much more new economy and intangible assets rather than tangibles. haidi: what also seems intangibles trying to work out the fundamental value of these intangible services and companies. how do you do that when you take a look at the usual metrics like free cash throw. yelled, does not paint a good picture when it comes to value. >> yes, you're absolutely right. i think john maynard keynes said it correctly, would you like to be precisely wrong or imprecisely correct? if you try to use conventional valuation criteria like net net tangible assets or pe, you will be precisely wrong. if you actually try somehow,

even though it is imperfect, to value intangibles, you will be imprecisely correct. where'd you sit when it comes to the inflation debate? we are seeing concerns across emerging markets given the extremes we have had when it comes to monetary policy, extraordinary as it is. what happens if we get quicker than expected tightening from the fed? >> well, that is a key question. to my mind, in 2021, clearly, inflation will jump. that is purely a recovery from covid-19. is mechanical. at it is going to wash to the system into 2022. the question is, in 2022 and beyond, can you see sustained inflation? my answer is no. disinflation will still be stronger than inflation. the only thing we are doing now is reducing the speed of this inflation. another -- of -- reducing the

speed of disinflation, not creating a significant inflationary spike. that sounds like splitting hairs, less disinflation or more inflation, but it is a critical difference. because if you have less disinflation and more government spending, that is goldilocks for equities. if you have a significant inflationary spike at a significant level that becomes very negative for equities and bonds. shery: what about dollar strength direction? we have seen this flight to safety. what would that do to emerging-market? >> the interesting thing, emerging markets do not benefit that much through the weakness of the u.s. dollar. and that is primarily to do with the way economies are functioning today, and the way financial markets are functioning. having said that, any sustained strength of the u.s. dollar for any time is really

disinflationary. that is what emerging markets do not want to see. all i am saying is the reaction of emerging markets to u.s. dollar, seems to be not as strong as it used to be in prior periods. guerre thoughts on mmt since you mention it in your notes -- i want to get your thoughts on mmt. is it a solution? is it helping are contributive to liquidity and the bubble we are seeing in this market? >> and my view anybody wants to go back to sound money is preaching something impossible to do. that train left the station at least a couple of decades ago. return to sound money is no longer possible. private sector will never again derive productivity of those [indiscernible] so the question to ask, would you like to grow? would you like to cry to -- try to create more wealth?

would you like to try to increase productivity? if the answer is yes, and public sector is the only answer left as of now. and mmt policies are not trying theyflate you out of it, are just trying to reduce the degree of disinflation, and trying to heal social discord and pretty much every country, that is the objective. it is actually a solution to several problems that we are currently facing globally. to an extent and i know what you sit on the debate. victor, great to have you, from macquarrie capital. let's take a look at ntt stock trading at the moment in tokyo. let's bring up that stock price. we are seeing now declines of about 5.5%, after docomo saying the board will discuss ntt's area going dollar by out plan. the board of ntt docomo is

holding a meeting tuesday to discuss plans to turn his carrier unit into a wholly-owned subsidiary. we could get details announced as soon as today and that is potentially worth $38 billion, based on the 30% premium to monday's closing price. but we are seeing ntt down by just over 5% in the early part of the session. shery: still ahead, the pandemic in exporting countries has disrupted supplies to china. haidi: it is putting the spotlight onto mystic food production and security. we will get -- domestic food production and security and we will get the abuse of a latest analyst. court said the trumpet administration has yet to prove they pose enough of a security risk to justify a ban. this is bloomberg. ♪

watchingou are

"bloomberg daybreak: asia." first world headlines. says speaker nancy pelosi converse will have to expect -- except more spending. bridgees congress can the trillion dollar gap with democrats pushing forward to trying dollars in new funding. president trump does not want to go above $1.5 trillion. the u.s. says will not abandon -- the u.k. will not abandon talks, the two sides resumed withdrawal talks in brussels despite the u.k. attempts to rewrite parts of the divorce bill already agreed. the eu says it will continue to talk but renewed its threat to take legal axon -- legal action against that u.k. is the talk -- as the clock ticks down. and yet postponing a policy meeting and med rising virus infections. the monetary policy committee had been set to discuss its next move today and tomorrow.

new dates have not been released. the government has been struggling with a slowdown and rising trade and border tensions with china. has banned a mass protest planned for china's national day rejecting application for rally across the city. last year a million people march against the governments extradition legislation which led to the bill being dropped. however authorities have repeatedly rejected applications for protests and supposing a sweeping new security law. global news 24 hours a day on tv and @quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. the judge who blocked president trump's ban on tiktok says the u.s. government overstepped its legal authority and failed to provide enough evidence for the chinese so it. should that the chinese social media app itself is a threat to national security. let's get the latest from her

chief asian correspondent stephen engle. ? what is the take away? >> the court documents were unsealed today. we got thrilling yesterday. the findings -- we got the ruling yesterday. the basic takeaways were, yes, the u.s. government made a lot of claims, and substantiated that on the security threat that china poses. however, the app itself, is not necessarily a threat. and the content on which the app disseminates, like videos and photos, are not a national security threat. the banchols also ruled would do irreparable harm to the business that tiktok has in the united states. said theg told, also trump administration overstepped its authority, under the emergency powers act. this is what judge nicholson. the u.s. provided ample evidence china is a risk to national

security. but he added the governments evidence of the threat posed by tiktok remains less substantial. this ruling is similar to the ruling we got on some temer 19th from another federal judge, the magistrate in san francisco, laurel beeler, who granted the upper limitary injunction in wechat. tencent's the trump similar ban in administration was seeking on national security grounds. the judge used the term 'scant little evidence'that there was a national security threat with we chat. this is what nichols said in the now unsealed findings. the trauma administration exceeded its legal authority. the emergency powers invoked by trump do not allow him to prohibit information material and personal communications given that tiktok is mostly used to share videos, photos, art and news, it is not possible that

--. that thatplausible content would fall under the espionage act. keep in mind there are still 44 more days until the sale deadline. on august 14, donald trump put a 90 day period for tiktok/bytedance to sell his u.s. assets to american company. nineexpires november 12, days after the election would comes up in 35 days. shery: given the tensions you mentioned, how important well china's next five-year economic plan b? be? intrigue,s time or from 2021-2025, at a time when some say there's a decoupling between china and the u.s., perhaps even what i just laid out, and economic and technology cold war between the two.

xi jinping emphasized domestic consumption and mystic innovation. so how did the smash -- and domestic innovation. so how do those mess at the time of decoupling with the united states where it is reliant on chip technologies. we have seen china take on the united states and the chip space including yesterday with sanctions on semiconductor international. perhaps interestingly on the political side the central committee will also meet october 26-29, not only to come up with a five-year plan, the blueprint for the economy and social changes, but also a longer-term plan through 2035. that has led many to speculate xi jinping wants to be the president in perpetuity, because he did in 2018, change the constitution, to allow the president to continue beyond the normal two terms as president. bloomberg stephen engle

joining us from hong kong. up next, shares of ntt and its mobile unit docomo. the board will discuss plans to take it private and what could be japan's largest tender offer. this is bloomberg. ♪

haidi: japanese wireless carrier. mosys its board will meet today to discuss a buyout from its parent ntt. takeikkei reported ntt may that unit private in the nation's largest ever tender offer. docomo's board. what we know about the deal so far? ntt -- docomo and

ntt confirmed they will discuss the matter at a board meeting today. this deal is going to move forward, the question is how much it is going to cost. a figure ofuggested ¥4 trillion, $38 billion. that would be based on a dell,rd 30% premium from -- docomo's closing price yesterday in tokyo. all eyes will be on how much ntt is prepared to offer. they already own most of the docomo, so they do not this is silly have to offer very attractive premium, but that is what we will be waiting to see later today. shery: why is this deal happening now? obvious thing we can point to is the new administration of the prime minister suga, who came into power earlier this month.

when he was chief secretary under par minister abe, he waged something of a war on carriers in japan campaigning to get lower fees for mobile bills. japanese consumers pay higher mobile bills on a monthly basis then many people in other cities around the world. he never really got that much traction with his initial campaign, but since campaigning to become prime minister and since becoming part minister, he has said he is going to -- since becoming prime minister, yes said he wants to force the mobile carriers to reduce their fees. bind and docomo in a ntt has taken the decision to bite the bullet and take docomo it.ate and handle jill, as a private company will make it easier to handle -- taking docomos-

as a private company will make it easier to handle. shery: and alert now on the track to, walmart on invest $25 billion in tata group. in talks for large state purchase in a super app aiming to create a digital services giant, offering a wide range of products in the retail space. this investment could touch $25 billion eventually, for large stake in this out, according to mint, .meant, citing-- if this goes through it will be india's largest deal in the retail space. this will eclipse walmarts may 28 purchase of stake in flip million, according to india's mint. let's get a check of the latest business flash headlines.

tiffanycounter suing over the dropping of a plant $16 billion purchase, saying tiffany mismanaged operations amid the coronavirus pandemic, thereby justifying its withdrawal from a deal. lvmh adds the dealer's business has been devastated by covid-19 dividing proper grounds to drop a buyout. house lawmakers plan legislation to reform aircraft manufacturing, in the wake of the 737 max grounding measures. in washington it would tighten the faa's control over going in other companies and their ability to let employees sign off on plane designs which would also require expert panel to review safety culture at boeing. the bill is backed by both sides of the aisle on capitol hill. virgin galactic search the most in five months is analysts welcome its potential to tap into demand for space tourism. shery: bank of america and

susquehanna initiated by ratings making the stock one of the most actively traded of the day. bank of america says virgin galactic is unique because it builds, assembles, and operates its spacecraft. susquehanna it says the company is a true space innovator. haidi: uber shares jumped on reports it is considering buying a ride-hailing venture bite bmw and mercedes parent daimler. we are told they expressed interest in the free now program after it struggled to gain interest from investors amid the pan -- pandemic. bmw and daimler merged their operations last year. haidi: in the early part of the asian sections, agent strzok's shrug off the rebound in u.s. asian stocks shrug off the rebound in u.s. stocks. more consolidation the theme we are seeing in the early asia session. the nikkei 225 trading down .6%.

tokyo inflation nubbers came in pretty light -- numbers came in pretty lackluster, better-than-expected. 1%,kospi trading higher by one of the out performers in the asian session. .5%.stralia we, tepid at we see the call for $.75 on the aussie dollar but near downside risk remains. kiwi dollar downside losses reverse from earlier gains, i news out from air new zealand saying guidance is murky but they expect they will declare a full-year loss in the following year. let's take a look at movers we are watching. of course in japan, ntt and ntt docomo as we ntt get further news about the spinoff. trend micro falling 6.1%, its

rival file for an ipo. next, the ipo front and the latest. this is bloomberg. ♪

karina: this is daybreak asia. i'm karina mitchell with the first word headlines. china leaders meet next month to finalize the five-year plan as president xi prioritizes innovation and domestic demand. set october 26-20 nine for the central committee meeting to discuss goals for 2021-2025 as well as longer-term goals. include speculation whether president xi asked backs to power beyond his normal term. goods in the first eight months of this year was less than one third of the total target set for the air in the phase i agreement.

beijing had promised to spend an extra 200 billion dollars on goods and services this year and next has managed barely 33% of the overall goal. soybean imports were under $4 billion by august compared with 14 billion in 2017. . the u.s. may put more sanctions on iran to further distance its economy from the outside world. sources that may target a dozen banks and labeled the entire financial sector off-limits. iran's economy has been crushed by u.s. sanctions. further moves would effectively leave it isolated from the global financial system. joe biden says he will return to the 2015 nuclear deal if he wins in november. ecb president christine lagarde says policymakers are ready to deploy more steam less weapons to eight euros on recovery, as coronavirus continues to weigh on prospects. she told lawmakers the future uncertain with consumers cautious about spending and investment. the ecb stands ready to adjust

its range of policy and sermons as appropriate. -- policy instruments as appropriate. global news 24 hours a day on tv and @quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. busy day on the ipo front. ztoese delivery giant express making its debut after raising $1.3 billion in its ipo, joining the wave of homecoming listings in the city. big k-pop fans bts'agency, million itst ipo the dollars in what will be south korea's largest offering in million. $820 let's start with is eto, any indications of how their likely to trade today? -- zto. >> yes, if you look at the u.s. stock which has continued trading into new york, that traded up since it priced last

week, and raised $1.27 billion. generally if the u.s. stock trade is up and this will be benchmarked against that, that is a fairly positive indication that might trade well today. night, so,.82% last hopefully, it will still be good. and there was another one, zai traded well after doing its homecoming listing in hong kong. benefited from the pandemic in terms of delivery, people ordering stuff from home. the signs are good but we will see how it will trade and an hour or so. andi: at of course big hit are tema, the agency of bts is the one we have been watching. what has been the investor perception despite covid four-seam vence to cancel perp -- despite covid forcing vans to

cancel their performances? ipo, smash hit, priced at the top of the range. institutional investors predict orders for more than 1000 times the amount of stock bellow to them, which is a huge -- amount of stock made available to them, a huge oversubscription which shows how popular it was despite as you said covid forcing the bands to cancel concerts. but they have been doing online shows. they're still extreme a popular. theband recently topped bill barth hot 100 chart and was the first asian act to do so since 1963. .- billboard fans of bts will be looking to buy shares in the ipo. shery: we will watch out for that. cats are exclusive interview fo at halfxpress see

past 10 in hong kong and shanghai, 12:30 p.m. in sydney. targeting october 31 for their mission with astronauts to the international space station. targetinga and spacex october 31 for the launch of the agency spacex screw one mission with astronauts to the international space station. the new target what de-conflict the launch with the arrival of the soyuz launch in landing operations. tesla's plans to build a $25,000 car and its push into china are not wearing its biggest rivals on the mainland, not just yet. ng motor say tesla is helping grow the popularity of electric vehicles which benefits all many factors. they told tom mackenzie they see

strong growth ahead. >> the first half clearly impacted by the pandemic, especially fiber and march -- especially february and march given that china is still down and everything so i think that last half stronger than the first half in china. and we are heading to the golden season of auto sales, september, october and november. i think we have a strong momentum we expect for the business. tom: what are you prioritizing in the next 12 months for post-ipo? >> investments into r&d efforts. we expect to launch our xpilot 3.0 in the next few months. we are excited to watch. we are also investing into areas of brand and internal development as well as billing out are supercharging network -- building out. tom: and it was a successful

ipo, how much runway does that give you? >> we have abundant capital for our current business plan. be more for leaning in r&d efforts and expirations of new technology and products, or accelerating some products and schedules. we have it gives us flexibility in our business planning. tom: the coveted post a loss of $110 million in the first half. do you expect to see those narrow and the next six months to 12 months? what is the timeframe for profitability? ,> i think for the net loss obviously was driven by how much we are investing in the business. so it is hard for me to provide a forecast at this moment to you. i think what we are focused on is our continued growth in our delivery nubbers as well as improved growth margins of our project, our -- products.

those two are going according to our business plan. i think profits will be narrowing naturally. tom: to look at bringing battery production in-house at some point? >> not something we are focusing on at this moment because it is a different business and very capital intensive. we have very good supply partners so we do not expect to do it ourselves. tom: the competition between xpeng and tesla the chinese market, elon musk said he wants to produce a million vehicles in the chinese market. how would you characterize the competition in the chinese market? oni we said we are focused really catalyzing the conversion of the auto market from ice's to ev's. in that effort we are partners with tesla, we are all doing the same work, trying to make sure it more consumers are attracted by electric vehicles. that is what we are offering and that is what tesla is offering as well. so our oak us is a much bigger pie. we are only -- our focus is a

bigger pie, we are only 5% of the market. i think the developing of tesla in china and the development of xpeng, as well as other electrical vehicle players, together we are accelerating that change and conversion. gu speaking to tom mackenzie. the pandemic is renewing urgency in china to secure its food and energy supply chains. we discuss with a senior commodity analyst. this is bloomberg. ♪

trump continues to raise more questions than answers over a covid-19 vaccine, saying one header million doses millinoavailable -- 100 after hinting at a pre-election breakthrough. saying 100 million doses will be available. the johnsstein of hopkins bloomberg school says he hopes the vaccine is not well by politics. >> vaccines do not saves lives it is vaccinations that save lives. people have to take it. so, what that is about is the confidence people have in the process. unfortunately i think a white

house has undermined that confidence by putting it in such a an intense political context. that is why there are number of steps the fda can take and others are thinking of taking to depoliticize it and just make it out the science, in a way that can inspire doctors to feel confident. and as a result, many people to feel confident about it. >> professor, this came up six times this weekend. let's get an update from you on a monday as it gets colder. will there be assault -- a shortage of other vaccines/shots, like a so-called flu shot? in a way i am hoping there will be a shortage because that will mean everyone is getting flu shots. we want to have as many people as possible get the flu shot, particularly people who are at high risk for flu. and particularly people who may have not caught in the vaccine before and can sort of get used to getting vaccines to the flu shot, which will protect them during flu season.

unfortunately, there probably is not enough flu vaccine for the entire population, so people should go out and get the flu shot. and if we run out we will run out and hopefully will run out on the early side, to really try to protect as many people as possible from the flu. >> explain the medicine of a given virus or -- or bacteria, overlaid on the likelihood of having rate harm from the covid virus? >> in other words having both together? >> yes, well said. clearer than me, thank you, dr.. >> sure, no problem. there are a couple of problems that could come up. one is many more sick patients. there are some years where the flute fills up hospitals by itself and on top of that you would have a pandemic. -- where the flu field hospitals by itself and on top of that you have a pandemic. less likely is where people wear a mask and keep distance. the same things that keep people from getting covid also keep people from getting the flu.

and countries in the southern hemisphere where people are taking a lot of precautions they have had a mild flu season and their winter. so that is what we are hoping. however if people disregard masking and are going out of doing their thing, flu could circulate and you are going to see worse problems there, both with cuba and flu -- both with covid and flu. and the prospect of getting medical care for flu will bring people in contact with people with covid. i think places are going to do well on both or poorly on both. >> what are monoclonal antibodies? theyr as i can make out are the guys that protect you, made in the lab and they protect you against infection, right? and what we know about these monoclonal antibodies to fight covid-19? >> sure. it is like plasma. plasma is all the antibodies people have are in plasma. monoclonal antibodies are trying to get one or a few of those antibodies that are thought to

be the most effective, to protect against covid-19. and then they make a lot of them , they produce them, it is not taken from somebody. the idea is that they could be given to people who maybe are just exposed to the virus but have not sick yet, and it could keep them from getting sick in the first place. it also could be used as an early treatment. of their are hints that other studies that they may be effective. so we will have to see when the studies get reported. that is another tool in the toolkit to protect people. john's hopkins vice dean joshua sharfstein speaking with our colleague tom keene. of course, the johns hopkins school is supported by michael r bloomberg, chairman of bloomberg lp. and the founder of bloomberg philanthropies. we have news out that the global

death toll from covid-19 has surpassed one million. who, rd from w a to, -- their top emergency expert saying that they one million figure is likely in underestimation and it is likely we have been over one million for some time. he also warned we could see death numbers toward 2 million, if less concerted efforts are made to contain the pet of it before we get a vaccine. -- two contain the pandemic before vaccine. the virus death count surpassed one million globally. china is planning to carve out sites longest east coast for strategic reserves of oil and agriculture products to ensure food and energy safety amid the coronavirus pandemic, to cushion the impact on the supply chain despite escalating geopolitical tensions with countries including the u.s.. we discussed that with the commodities analyst

at financial services firm stonex. taking a look at data you have been seeing, post pandemic, what is the strategy? and what are the concerns? from the outset the impact on supply chains, on food security, on energy security amongst other things, was one of the first aspects we saw heavily hit as a result of the pandemic and lockdowns. >> yes, in the first half of the year one major trend was very strong imports of soybeans. there was a big concern coronavirus lockdowns could described sports from exporting countries like the u.s., brazil or argentina. so we saw strong soybean imports in the first half of the year, and that is continuing. we also saw strong import of corn. traditionally china's is not import that much corn. but so far this year we are at 7.5 million tons and china is actively buying from the u.s. and ukraine.

quickly can china ramp up there homegrown supply side of the supply chain? we expect to hear more about that in the next five-year plan. detailsthere are emerging of what they plan to do. is this something we are likely to see in the short-term? >> no, it is not likely we will see it in the short-term. the main focus is on crating self-sufficiency into mystic production, but there are -- in domestic production. land reform has been big sticking point. they have been trying to make changes to increase plot size, farms and get to a more industrial scale, gear up the u.s. or brazil. it is a difficult challenge, not something they can fix next year. hopefully maybe 10 years down the road -- 5-10 years down the road. shery: we have seen china hit by recent typhoons in the northeast. what have been some challenges

the agricultural sector has faced recently? >> this year has been a tough year. in the central china and southern china, they dealt with flooding. in the northeast, they had relatively low average rainfall this year and that was compounded by three typhoons hitting in a row. the production losses are not devastating, but they are noticeable. now it is a question of trying to get some of that crop damage harvested in time so it is not spoiled in the field. -- spoil or go bad in the field. shery: how have these flows changed even the pandemic and u.s. china tensions? >> china continue to expand where they are importing from. we have seen this with meet. -- meat. when china had african swine fever they approved out of argentine, brazil and europe to diversify the supply chain. we are seeing it in products

like corn, wheat and grains, especially along the one belt, one road initiative. the strategy to become self-sufficient when it comes to port going in china? -- pork? >> there still facing headwinds. we have made a lot of improvements and there are new farms adding new supplies now. but it is not something that can be fixed in the next year. there was a lot of damage done to the small sector and the breeding stock. it is going to take several years to get back to normal. haidi: great having you on, from stonex. mostxt, the world's indebted real estate company has options but it does not have a lot of time if it wants to avoid a cash crunch. more ahead. this is bloomberg. ♪

credit investors contemplate worst-case scenarios for top chinese developer ever ground. the company has a range of options to help avoid a cash crunch but it does not have a lot of time. let's get more from our china credit reporter. what can ever ground due to raise funds? evergrand. >> some promising options, hong

kong ipo, trying to tap property management company's by spinning off its services business and they had approval for sale last week that could raise 1,000,000,002 people in dollars. -- $1 billion-two blame dollars. $1-$2 billion,. are counting on a servant in business that's a surge in business raise cash. the golden week holiday starts october 1 and they have been offering deep discounts on sales thus far. haidi: what are the constraints are looking at here? isyou mentioned one, timing one of the bigger challenges for the company. investors have the right to manned repayment. $19 billion they invested into the firm three years ago, is able torande

when the listing in china by the end of january and a number of analyst do not believe that is possible. another big one is historically the developer relied on debt products as a source of funding. it is the biggest issuer of junk bonds. but it looks like some of those panels may become tougher for their access in the future. there are signs that beijing is trying to curb that spending among real estate borrowers. potentially there is the introduction of newer ones that limit fresh debt sales. evergrande,tious on threatened to cut off its biggest source of funding. shery: what are analysts saying about those fundraising options? >> so far we have seen evergra nde has to some extent been able to assuage investor concerns. we have seen shares rally the most since march on monday.

it is showing some early tentative tones of stabilization, at levels well below prices seen before spoke last thursday. from the ellis points of view, many site the hong kong exchange approval of the spinoff, of its property management operation. and the application of the listing of china evergrande new energy vehicles, has key positive elements. haidi: our china credit reporter. let's get a look at the latest business flash headlines -- business flash headlines. prospects after an investor day that reinforce perceptions of potential for growth -- growth. continue to see multiple expansion opportunities, jeffrey says by due to strong uterine -- user engagement. talk most says it's board will meet tuesday to discuss a offered by offer buyout

from his parent, ntt. the largest independent, the proposed buyout could be worth $38 billion. -- holds 66% of duck, docomo. of $8for valuation billion. morgan stanley, citigroup have been tapped to help. net revenue for the first half was $1.5 billion. catch the exclusive interview at 10:30 a.m.ceo in hong kong and 12:30 p.m. in sydney. on "bloombergt markets: china open." future and the outlook when it comes to chinese and hong kong ark and the banking sector -- markets and the banking sector.

for "bloomberg daybreak: asia." an markets coverage continues. stay with us next, "bloomberg markets: china open." ♪ so you're a small business,

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