haidi: a very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market open. shery: i am shery ahn in new york. our top stories this hour. the u.s. election moves up as the two candidates prepare for their first debate. relations with china are expected to be hot topics in cleveland. asian markets face an uncertain session as traders await the latest check on china's post-virus recovery. investors weighing stimulus

prospects and rising virus numbers. disney is laying off workers at its u.s. theme parks and resorts as covid-19 continues to hammer travel and demand for group entertainment. ahead of the first u.s. presidential face-off, that debate in cleveland happening in the next couple of hours. we are seeing asian markets looking like they will start the day pretty adrift. chinese pmi numbers could show a steady decline further into more negative conditions. this is how u.s. futures are trading after slippage in the overnight session with low volumes going into that debate. contracts are pretty flat at the moment. thinolume is expected and liquidity on the ground in asia with korean markets on a public holiday and the last day of trading before the golden week holidays takes the mainland chinese markets out of action. we are seeing a pretty flat start according to the futures session.

in sydney, bearishness going into the open, looking like indicated downside of 1% when we get into cash trading and new zealand is up by .25% with japanese industrial production as well as chinese pmi numbers front and center. it is politics on your side of the world that we are focusing on today, shery. shery: the face-off between donald trump and joe biden will happen in two hours time. we are not far from that first u.s. presidential debate and there is no shortage of contentious topics. china policy is expected to be front and center as well as the pandemic response and civil rights. biden is still maintaining a lead but there's also plenty at stake over crucial swing votes. the latest.i has great to have you on. pandemic has severely limited in person campaigning, so how high are the stakes for this first

presidential debate, not only for president trump, but also for joe biden? gregory: i think that is it. there's more expectations on this debate than perhaps any debate in decades and it is because these guys have not really been able to go out and campaign the way we expect our presidential candidates do, to shake hands, hold rallies. trump has done more of that than biden-harris, but it's really obviously a very surreal campaign, given everything going on in the world these days, so a lot of attention on this first showdown between trump and biden and there's obviously no shortage of issues for the two of them to talk about. there's been some jockeying, setting some expectations, and a little bit of gamesmanship by a trump, talking about joe biden, is he on drugs, does he have an earpiece?

all kind of beside the point but it shows some of the gamesmanship that goes on leading up to this. we know the president has been trailing in the polls. we know he is likely also to contest whatever the result is, but i'm wondering, with a month left, is it too late for him to flip the script, if you will? ofgory: donald trump sort knows what they are getting with president trump, and he has his supporters and detractors, so i think, the real question mark is more on the bidens side. he was vice president for eight years. for theeen politics last 50 years in the united states but he needs to put his best foot forward and i think what president trump is hoping is that a disastrous debate performance from joe biden, who

has been known throughout his career for misstating facts and moments where he seems maybe a little less coherent, trump is betting on knocking biden off his game, to have a game changing moment. there are very few of those in presidential debates but that is what the trump camp is hoping for. shery: you mentioned the gamesmanship. joe biden just released his tax returns hours before this conversation. gregory: this comes in the wake of the new york times reporting over the weekend in which they obtained president trump's tax returns for the past 15 to 20 years or so, showed he has not paid any federal income taxes in many of those years and 2016 and 2017, paid only 700 $50 because he was able to carry forward so many losses in previous years. it will be interesting to see whether that comes up. there's not really a place for it in the formal debate schedule

although there is a topic about the trump and biden records. candidates are free to bring up whatever topic they want to do, but even joe biden, it is something he might want to mention. i think the biden strategy is to be relentlessly focused on the coronavirus and trump's response to it and not get dragged into any of these side issues. our senior national political correspondent, gregory, in washington, going into, of parts, that highly anticipated first presidential debate in just about an hour or so. let's take a look at the latest. we have breaking news crossing the bloomberg when it comes to apple. granted 333,000 shares or just over that, in 2015. tim cook was given his first -- since 2011. granting shares is to recognize tim cook's leadership. nine ofhe is on year

that 10 year grant at the moment. we will be getting more details as that story gets to us. let's get to karina mitchell. karina: the house may vote on a virus relief package this week either as a bipartisan deal or democrat proposal. mnuchinlosi and stephen have discussed the latest plan in the hope of striking a deal before the election. the democrats are talking at least 2 trillion dollar program. president trump wants to keep it to 1.5 trillion dollars. thailand will borrow almost $50 billion in the next fiscal year to boost stimulus and counter the economic fallout from collapsing terrorism amid the coronavirus. -- the move would push the public debt to gdp ratio to more than 57%. that is close to thailand's legal limit of 60%. over to the u.k., the latest

attempt to unblock brexit talks has been dismissed by a brussels. the two sides might struggle to reach an agreement. the u.k. submitted new proposals on state aid but sources say not enough progress has been made for negotiations to enter the so-called tunnel phase at the end of this week. boris johnson set a deadline of mid-october to strike a deal. microsoft says yesterday's office 355 outage and other issues in recent years are the work of hackers based in russia. it says it table 13,000 alerts in the last few years alone but more than half of them are related to gains in russia. in russia. china linked to 12%. 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. shery. shery: still ahead, we will

discuss the impact of la niña on global agriculture and food supply with sarah manker. she joins us later this hour. but first, the market outlook ahead of the first presidential debate with rockefeller asset management chief investment strategist jimmy chan. this is bloomberg. ♪

shery: asian stocks are set for a mixed start after a decline on wall street, but u.s. futures may enjoy a lift from the first presidential debate less than two hours from now. the stock market performance after past decades pointing to gains the day after. joining us on the line is jimmy jimmy chang. how big of a market moving event do you expect that to be and as an investor, what are you watching out for?

jimmy: it is always difficult to gauge it on a day-to-day basis but this one is important given president trump is trailing badly in the polls so he needs to perform strongly to turn the tide around, and at this time, he has set the expectations extremely low for vice president biden so in a way, you know, trump really needs to outperform tonight, but i think the market is starting to price in potentially a blue sweep and depending on how you look at it, glass half-full versus empty, on one hand, policies could be more friendly to investors in terms of higher taxes and more regulation, but there should be more stimulus, fiscal stimulus, with a blue sweep, which potentially is good for a reflationary trend around the world and weaker for the u.s. dollar. shery: could we see in

overheating of the markets and the economy if that happens, and what about yields? let me ask about yields. perhaps that is one of the less talked about risks here, that if you have a clear winner, could you see yields just shoot up? jimmy: it is interesting that the yields have not moved much if you look at the 10-year treasury yield over the past month, while equity markets were selling off. my expectation is that it is going to be range bound until we get clarity. the prospect of having an effective vaccine early next year, that will set the stage for a more sustained economic recovery, at which point, yields can potentially move higher. can we see a reversion in the bifurcation between tech and value without a vaccine? with time.ink

it tends to outperform when there is a sustained economic recovery. an effectivee of vaccine, it is difficult to make the case for a sustained economic recovery. the operative word is sustained. you are going to go back and forth. i think there will be an effective vaccine early next year given there are 180 companies working on it so i am somewhat optimistic that having a vaccine early next year will be the catalyst that finally enables value stocks and cyclical stocks to outperform big tech. haidi: i want to throw up a chart for our bloomberg users to take a look at as we head into the end of the corridor, looking ahead to the final quarter of the year. marginal outperformance we have seen in asian stocks compared to peers, is there for their room to run for asian equities, particularly eem equities, especially in light of the fact

we are getting greater concern about some of the downside risks and perhaps just rebalancing when it comes to emerging markets? emerging markets are very bifurcated between asian stocks and if you look at latin america, the rest of the emerging markets, in countries have done a suit herb job in managing the pandemic and it is very export driven. china accounts for a big portion of the index. china's export has been booming. friends ins of china, taiwan, korea, hong kong, where a lot of them are back to normal. assuming we do not get a dramatic decline in activity, and demand in the west because of a potential second round of outbreaks, i would expect asian stocks to hold their ground and perhaps outperform some. shery: i feel exactly what you are saying. so jealous of people in china,

japan, korea, taiwan, where they don't have to wear a mask outside. it is something unimaginable for us here in the united states. is that going to be what determines outperformance in the markets going forward? not to mention we are talking about economies where we have those new economy stocks as well. jimmy: i mean, if you look at some of the meeting asian stocks, there is obviously, you know, big tech. these battery makers, some of these alternative energy stocks, they have been leading the market. i think as the recovery becomes more sustained here in the west as well, you will start to see a rotation into value, both in the west, and in asia. really appreciate your time. and some of those really interesting insights. jimmy chang with us. coming up next, disney is laying

off 28,000 employees, ranging from executives to part-time workers. we will have more details, next. this is bloomberg. ♪

haidi: disney is laying off 28,000 workers. the cuts affect the theme parks, and it is the latest sign that the leisure industry is having a tough time recovering from the pandemic. for more on this, we are joined by chris palmeri. theaw the rush to reopen, various measures that were put in place, some renewed closures around the world, and it really is a sign that maybe this is a reality check, that it will be a long time before these theme parks and cruises can go back to normal. >> that is right. we are seeing that a lot of air travel in particular, orlando, las vegas,

and anything that involves commuting a large number of people, people are reluctant to get in a situation with a lot of other people. even after opening, in florida, disney is taking steps because they are not seeing business. shery: tell us a little bit about the business. how bad has it been so far? chris: you know, there's a lot of factors at work. one is that they open with capacity limits. as low as 30% of people allowed in to enforce social distancing, so that is going on, and they are trying to open with a lot of systems so there's less interaction with guests so you see thea qr code to menu and things like that. that means less workers. it is a situation unique to california.

governor gavin newsom has not allowed theme parks here to reopen and it has become a big height -- a big fight. the last few weeks, they have gotten increasingly vocal, including disney saying there are no major outbreaks and it is time to reconsider the rule. of course, iti: has been a pretty tough time all around for disney, the great hope of its new streaming model has not turned out as expected. with mulan, it is certainly a disappointment. they were asking people to pay an additional $30. disney plus as a whole has been one success story. streaming during this pandemic. it is the one thing keeping disney stock up. we will continue to see strong numbers from subscribers there. palmeriloomberg chris

with the latest on disney. let's get a quick check of the latest business flash headlines. google says it is close to a compromise in australia that would force it to pay for news as it continues to have the proposed legislation watered down. the government wants social media to compensate publishers for the value their stories generate after media struggled to adapt to the digital age. tiktok launched a u.s. election died as it fights a potential ban by the trump administration. it is rolling out links to verified information about the november election, offering a range of languages and what it says is an attempt stem the tide of fake news. macron cell in late. after seeing its halted component shipments to always technologies. it is warning about weaker demand from some customers and forecasting oversupply in a key market next year. it says it stopped sending components to huawei on september 14 as the trump administration tries to sever

the companies ties to u.s. tech suppliers. after ae gained 4% series of announcements in the first day of its world conference. they are calling the move game changing. chango spook with emily about taking the conference virtual this year. people for150,000 the virtual event because many have 50 peopley joining online so we have seen a much larger audience worldwide. the worldwide event, and so far, it's going fabulously well, and a lot of energy. announcement bringing ai, democratizing to every developer in every enterprise, being able innovationshe knew and applications and networking. so far, a very exciting show.

poised to be picked up by dell. how would that change hiring? >> the dell relationship is great. we want to make sure we keep that going. we would also say one of the things we cannot do now is use our equity for m&a. we can only do it out of cash proceeds. this we expect will be a positive thing to expand the horizon for m&a, clearly being a bit more independent will be beneficial for ecosystem and employees. the debt markets, the equity markets, that potential, we see promise, but we have a long way to go until we get to that five year anniversary and a spinoff is possible. >> right, so what is the status of the spinoff? are you still on track for 2021? >> we hope that by that time

frame, we would be in a position to do it but we formed a special committee. work is underway, and beyond that, i cannot say a whole lot else at this point in time, but we think the markets will look at it favorably so i am recently optimistic, but a long way to go. >> now, in this new remote world, you have got a lot of workers leaving silicon valley for cheaper places to live, totally understandable, and you have a lot of companies that want to honor that flexibility, let them make those decisions, but they are trying to figure out how to deal with pay packages and the logistics. vmware, bloomberg reported a couple of weeks ago, would be cutting pay for some of the workers who would be leaving the silicon valley area. what more can you tell us about how you're are managing this transition, and what lessons are there for other companies? >> what we said is we are beginning our work of the future now. we are not waiting until next year.

benefit ton such this workforce model that we are implementing those policies right now, which allows people to decide where they want to work from. as we said before the pandemic, we were maybe 20% work from home. after, we expect people will maybe be 20% off. maybe 30% hybrid. over 50% work from home. that is a dramatic shift. as a result, we have been adjusting our policies, giving per diems. if someone was hired in the midwest versus the bay area, when they moved to the midwest, they will be at the midwest pay packages, and that is fair and reasonable. if they move to another country, we hire them into the pay ranges of that country as well as if they would relocate, so it's a very fair way to view that transition, but we said people can start making those decisions

now, and for us, we are quite excited because it gives us more reach for diverse workforces as well. diverse citythose areas, absolutely, you can be part of this great team. we are quite excited it reduces carbon, gives people more flexibility, enables us to have more diversity. we think this is a win-win-win. shery: that was pat gelsinger speaking to emily chang. up next, j.p. morgan is hit with a $920 million fine after admitting to manipulating the precious metals and treasuries market, the biggest settlement for spoofing, ever. this is bloomberg. ♪

karina: the u.s. election moves into high gear as the two candidates make final preparations for their first debate. president trump's taxes will be high on the agenda as well as his handling of covid-19, china, and race relations. joe biden added to the mix by releasing his most recent tax returns. taxaid $300,000 in income last year while the president is reported to have paid just 750 in 2016 and 2017. new york is facing more damage from covid-19 with almost 6000 businesses already closing down. the jump of 40% in bankruptcy

filings. the state is struggling with a resurgence in virus infections and with the northern winter on the way. more businesses are expected to close as outdoor winding -- outdoor dining winds down and people continue to work from home. the democrats in the senate are calling on amy coney barrett to recuse herself of any future cases related to the election after president trump said the court may have to decide the outcome. we are told she may be asked about that during her confirmation hearing. the virus confirmation would push the supreme court further right with a conservative split on the bench. spacex is making minor changes to its dragon capsule ahead of the manned mission to the international space station. it is reinforcing the heatshield after finding erosion and it is installing a more powerful pressure sensor which will allow parachute to deploy at a higher altitude on return to earth. nasa says neither issue presents any danger.

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. shery: let's turn to a quick check of the markets right now. we are seeing u.s. futures holding onto modest gains, gaining .1%. this after we saw stocks falling in the regular session. this ahead of the first presidential debate in the u.s. japanese futures holding steady at the moment. quitepanese yen has been weak lately against the u.s. dollar at a two-week low. in fact, we get come in less than 20 minutes, the japan retail sales in august industrial production numbers so watch out for that. two futures under pressure -- sydney futures under pressure. we continue to see a little bit of aussie dollar strength. we have seen broad u.s. dollar weakness as well in the past few sessions. the strongest in three weeks against the u.s. dollar but also because we have quarter and

demand -- end demand from exporters. rising .2%. haidi. to one of's get back our biggest wall street stories. almost $1n set to pay billion. two of the banks biggest trading desks are involved with almost 15 traders. schonberg has the twists and turns. the banks admitted to spoofing. what is this practice? tom: spoofing is typically flooding derivatives markets with orders that traders actually do not intend to execute in order to kind of trick other market participants took kind of move the price in a certain direction that they want them to. you know, think of it like trying to sell a hamburger by flooding the front of your restaurant with a bunch of people and as soon someone buys

it, everybody disappears. shery: what were the losses from all of this then? losses in the the marketplace, the government says, is 300 million to other market participants over eight years. . haidi: part of the settlement means the bank needs to continue to cooperate with ongoing investigations so does that mean there is more to come to him and what sort of scale are we talking about here? tom: sure, yes. we got a little window into how big of a case this might the about a year ago when they brought racketeering charges against four j.p. morgan pressures metal traders, and sort of today, we get a real look at actually just how extensive the government's case was. it not only involves precious

metals, but also the treasury's desk. have 15 traders accused of misconduct over a significant period of time. there are cases continuing against individuals at the moment. shery: how did the u.s. government figure out this was going on from the get-go? thes: -- tom: really, for first time, they are really using data, their own data from the traders, to make the case. any time these traders are putting in an order, they have to use the personal id on the exchange that they are trading on. what the government did was they got their hands on all that trading data and kind of look for, you know, the red flag, and kind of came up with a list of traders to look at, and from there, they started, you know, issuing subpoenas and knocking on the doors of traders homes. will they be compensation for the victim -- there be

compensation for the victim? the justice department is collecting money from the bank. they will set it aside in some sort of crime victims fund so at some point, they will try and provide some notification to market participants that they can probably file something in an attempt to be compensated for their losses. with them schonberg latest on j.p. morgan. up next, we will discuss the impact of la niña on global agriculture and food supply with sara menker. that is coming up. this is bloomberg. ♪

we,i: all right, well are looking at a day that brings chinese pmi numbers -- well, we are looking at a day that brings chinese pmi numbers. of broaderackdrop dollar weakness overnight. u.s. stocks weaker as we get into just an hour or so away into the first u.s. presidential debate. weathereantime, extreme conditions have already shown us wildfires this year and of course, we had wildfires in

australia around the start of the year as well. la niña, which occurs when the surface of the pacific ocean has caused an atmospheric chain royals -- roils weather around the world. sarah manker, wonderful to have you again on the show and of course, this is a year where we have seen global commodity supply chains already impacted by the pandemic and by these changing tides when it comes to trade and globalization as well. how does something like that mean you play into that affect? chris: good to be on the -- sara: good to be on the show again. la niña leads to a series of effects that will impact agriculture globally, and one of the things is that, you know,

unlike the health crisis, where the impact is uniform across the world in the sense that the effects are the same, la niña has very different effects depending on what part of the world you are in. if you are looking at going into the growing season in brazil, which the u.s. is currently finishing off its growing season, where it has been hit by winds and had some unprecedented drought, it mixed the climate disasters this year in the united states, and now, we are moving to the southern hemisphere, looking to have year rainfall and parts of northern brazil that will impact sugarcane production and potentially benefit them, but when you start to look at southern brazil and central argentina, you are looking at potential dryness and these are significant growing regions for orn and soy production. seasonably -- you could have drought in these areas

significantly and negatively impact soybean production at a time when china is buying soybeans and corn from the u.s., from brazil, from places like ukraine, but then as you start to look at, you know, southeast asia, you are looking at increased rainfall, which is really, you know, where you are starting to look at palm oil production, and there could be damage to crops, so one of the niñas about, you know, la is that the impact on where in the world you are and what part of the season you are in will have drastically different impacts to palm oil than it does to corn and soybeans in south america and we will have, you know, different effects to places like columbia which is a major growing region for coffee, where you could have increased cloud cover and that could actually basically start to

impact things negatively and coffee production. there will be variable impacts to different parts of the world, but this is really a situation of the theme we have seen this year on climate overall, which is it is not the same effects for the -- across the same country, let alone around the world. a global chain reaction in terms of this phenomenon, how does this really make even more crucial governments and companies wanting to secure supply chain or achieve supply chain security? down on really doubling being able to be food self-sufficient, up to 95% in the coming years. the fragility of our supply chains is exposed more than ever before this year. this simply escalates that and it is not going to be due to logistical bottlenecks. it is supply chain disruption.

this is the kind of unfortunate reality that we are living in this world of climate change is this. it is not the same experience for everyone. this ability to predict the plan, to understand, and to take action, well in advance of that happening, is something that is not just businesses but governments are going to have to do. been afficiency has major goal. xi jinping has made it an even bigger priority this year. security isclaring equivalent to national security and reevaluating china's short, medium, and long-term plans for food security which itself can shift markets irrespective of climate change. now, you have this on top of that. shery: we are just showing a chart while you were talking about the food prices really rallying during the last la niña

event in 2011. is this what we are going to see this time around as well? toa: prices rally either due supply-side disruptions or potentially increased demand and what you have this year is potentially a confluence of both because one of the major things happened, again, going back to china, is that the recovery of herd from african swine has been rapid. last year,tting discussing that, and now, it looks like that herd will be fully rebounded by the middle of next year so you are going to have a set of side tensions and demand and then foreign exchange rates so that experience is

going to be drastically different in different parts of the world where certain currencies have been hit very hard due to covid, and so, the ability to essentially pay for your imports has been drastically reduced, so some of that inflation you see is reflected just because of fx rates. day,: at the end of the how will this affect the most vulnerable out there? food is so important. the poor are just trying to buy their own meal every day. the: yes, this is one of things that causes heartache for me. when you think about the poor, some of the supply-side disruptions you have actually had is the spread of locusts, which we start to, as a company, yelling and screaming about it in february, saying the poor across east africa and southern asia, you know, will be greatly

impacted because of locusts destroying crops, and our forecasts were not anywhere in line with where public agencies were saying the numbers were and we were pretty certain in what they wear, and now, that is starting to materialize, so the reality is, the poor pay the price, and we as societies, governments, and businesses, just start to have to become a dataore proactive in using to start making decisions. you know, proactively, not reactively. we live too much in a reactive world still. haidi: that was going to bring me to my next question. data collection and formation you guys specialize in, how does that work to help governments to be able to be a step up in the game, particularly we know these sorts of climate events are here to stay? sara: it is about raising the

red flag. one of the things we did -- we are in a business. we are in the business of selling our data, selling our predictive models around supply and demand for many of the world's biggest businesses. you know, one of the things we did this year was make all of these predictions around the impact that locusts were going to have on crops, not just across east africa, but in parts of southern asia and the middle , publicly accessible and actually proactively started going to governments saying you cannot say you do not have the data. we have not only giving you data, we have given you the forecast to tell you exactly what you should do, which involves buying crops early because your foreign exchange rate and reserves are also going to go down in the process, and you know, unfortunately, i would like to say a lot more action is

taken but there's a lot more that can be done so part of it is going to be behavioral change will have to see in global leadership around using this type of real-time information to make decisions. it works for financial markets and we need to make it work. we need to start making it work for public institutions as well. shery: with all of the data you have at your disposal, have you been able to map how much of an impact the pandemic, not to mention the supply chain disruptions because of this -- the trade tensions so far in the agricultural flows? sara: we have but the answer has been complicated earlier around the flows. they are impacted again this year not just because of supply-side or demand-side or logistics. very rarely do you have market disruption happening, meaning

usually, you either have a climate event that disrupts supply or you can have -- you really have demand shocks. this year, you have supply shocks and demand shocks tapping -- happening simultaneously and you have bottlenecks. it's pretty unprecedented. crisis started rallying and then there were articles and headlines. we had gone out and said there is no meat supply problem. there's going to be a massive meet demand problem. we have a logistical bottleneck. there is way more supply than there is going to be demand as we take -- as the economic toll starts to take its head on the restaurant industry and the way individuals spend. skyrocketed kind of all the way to record highs and then plummeted to below the five-year averages. basket has behaved very differently in the u.s.

that it has in china, then it has in parts of sub-saharan africa, which are going into potentially hyper inflationary mode in terms of the disruptions they have faced, so it's complicated based off the type of food you are looking at, but more importantly, also the region of the world while looking at. >> really appreciate you coming on with us. as always, sarah manker with us. we do have breaking news crossing the bloomberg when it comes to the latest japan industrial production numbers as well as retail sales. industrial production year on year seeing a contraction of 13.3%. that is marginally better than expected for august, the polemic area number. when it comes to the month on month number, it's a gain of 1.7 percent. also slightly better than expected and better in terms of the year on year number from the contraction we saw in the previous period. so month on month, we are seeing

that increase. we are seeing a recovery study of exports and other information related to goods probably driving that pickup in terms of the elevated numbers of covid-19. it probably prevented some of the activity from returning to full potential. we are looking at retail sales numbers coming through as well. contractions, slightly better than expectations of a fall of over 3% on the year on year number, and month on month, we are seeing a gain of 4.6 percent, suggesting post lockdown, post covid recovery, we are seeing stronger domestic demand across the retail sector. coming up next, the biggest ever tender offer in japan is underway. out its wireless carrier unit for $40 billion. we have the latest on that deal. this is bloomberg. ♪

shery: more details have emerged about ntt plans to take kokomo private, and it is believed to the buyout could be as big as $40 billion, the largest ever in japanese corporate history. it comes at a time when the new prime minister is looking to lower tariffs. bloomberg's senior editor is in tokyo. now that the deal is official, what is the outlook for its come nation and also the timeframe? >> -- its completion and also the timeframe?

>> they are wasting no time in getting things started. they want the offer to be completed within the fiscal year. privatization would take until the end of march next year. ntt owns, docomo -- most of docomo, so there's no reason to believe that the deal will not go through, and obviously, the premium they offered, 40%, which was more than expected. honestly, more than they required. is extremely attractive so there's no reason to believe it will not go through. is the company saying it's really the backdrop to this deal? the background to the deal is interesting. the price cuts that are being proposed or demanded by the new prime minister certainly way on

this deal. yesterdayy has denied that there was a direct link between the government pressure for price cuts, saying the deal .ent back to april before souter came into power. however, the previous price cuts that were demanded by suga were certainly having an impact on docomo. it has the largest market share. it's earnings power has started to slip in terms of its earnings on having difficulty generating the right amount of profit. their position yesterday was that, in order to secure a future for docomo, they were going to take it in-house, strengthen it up, and then take it there. >>, our senior editor in tokyo. let's get you a quick check of

the latest business flash headlines this hour. chinese leaders are evaluating the potential risks posed by the top developer, evergrande, as the company battles a looming cash crunch. the concerns go all the way up to the top of the cabinet and the financial stability commission chaired by the vice premier, liu he. options on the table include state owned companies taking stakes in evergrande and a proposed listing of the electric vehicle unit. has agreed to let tencent take its search engine private. tencent will pay them $1.8 billion for the units at a premium of around 55% of the last close in july when the proposal was initially announced. coming up on the next hour of daybreak asia, we will be assessing the chinese economy ahead of golden week. what to expect from pmi data out later with the bank economist and do not miss out on our exclusive special coverage of

the presidential debate at 8 a.m. in hong kong. if you are watching in new york, it is 8 p.m.. -- 8:30 p.m. this is bloomberg. ♪

welcome to "daybreak: asia." i'm shery ahn. haidi: i'm haidi stroud-watts in sydney. asia's major markets have just open for trade. the u.s. election moves up a gear as the candidates prepare for their first debate. the coronavirus and relations with beijing are expected to be hot topics. asian markets facing an unprecedented session as the post-virus recovery is awaited.

investors weighing stimulus prospects and rising infection numbers. the pmi data from china is expected to show progress at a slower pace. companies elsewhere should support export demand. shery: japan and australia coming online. korea is away for the holidays. here's how japan is trading. pressure for the nikkei and the topix. falling as much as half a percent. this coming after three sessions of gains for japanese stocks. the yen holding steady. the 105 level against the u.s. dollar. this coming as we see we this against the u.s. dollar, a two week low, ahead of the presidential debate in just an hour. this also as we had japan's industrial output eating out estimates, same as retail sales. haidi: let's look at how we are

setting up. we are looking at the liquidity. korean markets up closed. we do get into the holidays. that, when it comes to the first minute of the staggered open in cash trading in sydney. the aussie dollar picking up pace. gains against the backdrop of water dollar weakness. low alongsider sentiment with stock trading. yield ate 10 year 0.807. the nikkei off of the earlier gains, trading marginally higher by a quarter of 1%. we have also just gotten the business confidence numbers out, in terms of what we are seeing. we were meant to get these numbers out.

new zealand confidence numbers coming in at a contraction of 28.5%. let's get more on the markets as we enter the last session. mark cudmore is here. we are keeping a close watch over the presidential debate. in terms of what is swaying the markets, is it that or the china pmi numbers? >> it is completely about the debate. the volume has been low in asia equity markets for september on a seasonal basis, because investors have been nine the debate and the election uncertainty in the u.s.. also because we are going into the golden week holidays, the extended china holiday, china pmi is less relevant. most have closed up positions around china assets already. it is very much around the debate. we have seen low-volumes. we will also get the trade

complicated by quarter end. that backdrop, the dollar has fallen a lot in this quarter. there might be dollar buying in the quarter. it is really all about the debate today. shery: what happening to the chinese yuan? the chinese 10 year yield about to break a record high ahead of the golden week holiday. at the same time, we could see a lot of china bashing in this debate. >> we could, but there are two different things to think about. you are right, for the next six weeks going into the election, one of the few issues in the u.s. that has a partisan support -- partisan support -- bipartisan support is the idea of bashing china. both candidates may feel that aggressive rhetoric won't be great for chinese assets. one thing is we have gotten used to this for the last few years. it will not be new. everyone is expecting it. it has to be really shocking to

be negative for the yuan. and the long-term fundamentals are positive for the yuan. you mentioned the yield support. it is strange to have a currency that is high-yielding and very stable. yuan is one of the most stable in the world. backed by some of the strongest growth in the world, outperforming this year, outperforms most years, one of the countries that will grow during this 2020 year, high yield, and quite stable. long-term, they are good for the yuan. there has to be something shocking on the rhetoric side to derail that. haidi: as we see the pandemic worsening, a global recession is still underway, and one of the most bitterly contested political campaigns going into november, yet the treasury market is eerily calm. does that worry you? >> the treasury market is now redundant as a macro guide. that became the case as of late

last year. for the last long period of time, we have seen treasuries at the ultimate macro guide. now they are useless. there has been such a great quantitative easing, aggressive forward, record lows, they are not going higher anytime soon. what's the point of trading any economic signals through bond markets? that's why has -- fx has become the purer macro debate. we will not look at what treasuries will do. they will not do much. you will look at futures, but also things like the aussie, yen, and mexican peso. mark: our managing editor, cudmore. get more with our team on the terminal at miliv go. data.check on entity we have the latest news of ntt buying out docomo for $40

billion. japan's biggest offer. this now having an impact on the stock price. this coming at a time when the prime minister is trying to push tariffs lower. ntt data and ntt under pressure at the moment. let's turn to karina mitchell with the first word headlines. >> the house may vote on the virus relief package either as a bipartisan deal or democrat proposal. treasuryelosi and secretary steven mnuchin and have discussed the democrat's latest plan in the hope of striking a deal before the election. democrats are talking at least a $2 trillion program. president trump wants to keep it to $1.5 trillion. timeline will borrow almost $50 billion in the next fiscal year to boost stimulus and counter the economic fallout amid the coronavirus. the government approved the

plan, which is down on earlier borrowing forecasts. it would push the public debt to gdp ratio to more than 7% among close to the legal limit of 60%. the uk's latest attempt to unblock brexit talks has been dismissed, they may struggle to reach agreement before a leader summit next month. the u.k. submitted new proposals on state aid, but eu sources they not enough progress has been made to enter the tunnel phase by the end of this week. boris johnson set a deadline of mid-october for a deal. microsoft said yesterday's office at 360 five outage, under the issue in recent years, is the work of hackers in russia. it says 13,000 alerts about a tax customers -- attacks on customer services in the last two years alone were related to gains in russia. linked to about 12%. north korea much of the

remainder. global news, 24 hours a day, on air and at bloombergquint take, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell, this is bloomberg. haidi: coming up next, chinese pmi numbers due in a few hours. expected to show a slower recovery. we are closing in on president trump and biden's first presidential debate. to be topixrus and in cleveland. and our special coverage of the debate begins at the bottom of this hour. you don't want to miss that. this is bloomberg.

china's manufacturing pmi numbers can show the economy making progress at a slower

pace. the improvement in the industrials sector should have benefited from rising operation rates and strong exports as overseas reopening's continue. consumption also started to catch up as more restrictions on traveling and visiting entertainment venues were listed. let's preview the data with the chief greater china economist, iris pang. to what extent will the pmi numbers continue as a forward indicator to paint a picture of a resilient recovery in china? all, theof manufacturing pmi numbers will be higher than august. this is the september number that will be announced. the reason is quite strange. chinese exporters and manufacturers are worrying covid in the market is going to increase. torefore, they try

manufacture earlier and ship earlier than usual so that the shipment will not be disturbed. orientedry covid reason, and is not usual. for manufacturing, after the leisure travel, september should grow slower, because of the decrease in within china,ties but on the other hand, increasing financial and construction activities in china in september. haidi: as we get into the golden week holidays, the seasonal frontloading is expected when it comes to the data. i'm more interested in the consumer strength part of the story. the retail sector, consumer sentiment, has started to pick

up their part of the listing in this recovery story. how much of a litmus test will golden week be for how resilient this is? >> if you talk about the golden week, october, which is not related to the september data, i expect it will be even better than the summer holiday in july and august. there will be more travel, therefore more spending. spending, and also the resorts. there will be more spending. the social distancing measures, catering businesses should not be in a very good situation. shery: how healthy is a chinese economic recovery? we continue to see these numbers, where luxury goods are selling, but we see most of the

population, especially the poorest in china, are not seeing the benefit. >> i actually disagree with this argument. because of the cross prudential travel, there are jobs created in most skilled labor markets in the service sector. so workers who usually work in factories who have been redundant in march and april, some of them have been able to get a job in the service sector again. sustain inravel can china. it is a very great market. if we look back two or three years ago, how chinese tourism markets, europe, we can see it is now helping china. shery: the china household

finance survey came out saying the most households in the bottom 50% of those earning less than 100,000 yuan are saying their wealth declined in the first half of 2020. if you are seeing consumer confidence being hit, especially for the larger part of the population, how damaging cannot be on the recovery going forward? >> right, because in the first half of the year, there was no policy for travel. travel only starts in the second half of the year, in july. the policy has changed, the situation has changed. covid is under control in the second half within china. so i don't really rely on that set of data. shery: iris pang, great to have your thoughts. in a moment, donald trump and joe biden prepare for the first

presidential debate. we preview the event, next. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. ntt's proposed buyout of dr. mocon is a 40% premium to monday's closing price in tokyo. shareill pay 3900 yen a for the stock it doesn't already hold. given it controls two thirds of the carrier, it is all but guaranteed to go through. the board is in favor of the takeover, which would be the largest in japanese corporate history. viacom fell in late trade after it said it halted component shift of -- components to huawei technology. weaker demand from some customers and forecasting oversupply in a key market next year. it stopped sending components to huawei september 14 as the trump

administration tries to sever the chinese company's ties to u.s. tech suppliers. sohu.com has agreed to let tencent take its search engine private. them $1.7ll pay billion for the unit at a premium of around 55% to the last close in july, when the proposal was announced. the deal may close by year end and will see tencent own a search engine that has been largely the default of the wechat app. tiktok launched the u.s. election guide as it fights a potential ban from the trump administration. it has links of a information offering languages and what it says is an attempt to stem the tide of fake news. it aims to reach firsthand voters, the app is a threat -- you have mocked trumps assertion it is a threat to national security. shery: all eyes on cleveland,

ohio as donald trump and joe biden await their first debate. there is no shortage of contentious topics. china policy is expected to be front and center, as well as the pandemic response and civil-rights. let's get to gregory corti for the latest. really, there will be plenty of hot issues, whether it is china or taxes, on top of the formal topics. >> yeah. as far as china goes, there is not really a place for foreign policy on the agenda, per se, but they will get into covid. we know president trump refers to the coronavirus as the china virus, he blames china for a lot of the devastation the virus has wrought on the u.s. and the world. the economy, trade is a big issue. president trump's trade wars. the debate will end with 15

minutes on the integrity of the election. we know the intelligence assessments are both russia and china, also iran, are trying to put their fingers on the scale of this election, and could be using some kind of cyber influence or other covert methods to influence the election. haidi: do we expect the president to bring out his supreme court nominee as a way to galvanize some a undecided conservative voters? >> the supreme court is another topic. there are six formal topics, we will get 15 minutes on them. president trump thinks this is a game changer for him, that this is a nomination that can really excite his base. amy coney barrett is a conservative appeals court judge. dameusly a woman, notre law professor. she really has the conservative

ofdentials that really a lot republicans and social conservatives believe make her a good heir to the antonin scalia a legacy. how that plays, in terms of this election, is not clear. there might be more enthusiasm on the opposite side by liberals and democrats to keep a seat that was held by ruth bader ginsburg for 20 some years. lookinghat are polls like in swing states? >> i was just looking at this moments ago. the thing that strikes me is how remarkably stable they have been. usually in presidential elections, you see ups and downs, lead changes, a shift in maps. the only changes i have been able to detect in recent weeks are in ohio, iowa, and georgia. in all of those cases, it is tightening, or joe biden has taken a lead.

those are three states that should be reliably republican. if president trump is having to defend states like ohio, or, and iowa, that means he's probably in trouble. the blue states of michigan, pennsylvania, and wisconsin are leaning 6-8, maybe even 10 points to joe biden. these closer states are states president trump should have in the bag. we will see how much the debate will influence those numbers. they have been stable through both of the conventions. usually, each candidate will be getting a bounce coming out of the convention, that did not happen. it remains to be seen whether the debates can move the needle at all. shery: one thing that is -- haidi: one thing that is certain is if we get a democratic upset in november, it will become a contested result? on whether it is

in the margin of litigation, which is what some lawyers refer to it as. what democrats are hoping for is a big blowout to remove any question about the legitimacy of this election. president trump has failed to categorically say he would accept the results of the election if it was contested. yearbody remembers the 2000, when in the election between george bush and al gore, it went up to the date the electoral college was meeting in december. certainly, the markets. a lot of us, just for our own sanity, hope whatever the outcome is on a november 3, it is decisive. but we already know there will be ambiguity, because a lot of states with voting by mail may not receive the ballots until later in the week. we may not be able to have states certify their results later than usual this year. shery: we have a packed few weeks ahead of november 3.

not only the presidential debates, but also the vice presidential debates. what should we expect out of that one on october 7? >> that one is in salt lake city. it is kamala harris' first real turn in the spotlight. she had an appearance at the convention, she has played a role in the senate judiciary committee in past confirmation hearings. she has made her presence felt in the democratic primary debates, but she bowed out of the primaries earlier than some of the rest of the field and did not participate in all of the debates that helped her to get on the ticket. but it will certainly give us more insight into who kamala is theis, and mike pence incumbent vice president. we saw him debate in 2016. there are lesser known quantities. voters don't really vote on the number two on the ticket.

they are really making their decision on who is at the top. haidi: taxes, that will,. >> ye -- that will come up. >> yeah, we have the leaks of donald trump's tax returns. joe biden has released his 2019 tax returns. certainly it is fodder for this debate. what we have seen throughout the years with presidential debates is when the moderator decides on topics and questions, that kind of breaking news story, something so immediate and has made headlines the past few days, almost certain to come up. haidi: appreciate your time. gregory korte on a very busy night in washington. get more analysis on the presidential debate in today's edition of "daybreak." go to tv on your terminals, it is also on the mobile, in the bloomberg anywhere app.

our special coverage of the first presidential debate continues. this is bloomberg. ♪

>> you are watching daybreak asia. up a.s. election moves gear as the candidate prepared for their first debate. taxes, the coronavirus, and china may be the hot topics in cleveland. tradersocks dressed as await the latest post virus economy. pmi data view from china next hour expected to show continued progress but a slower pace. reopening economies elsewhere should support export demand. here is a check of how markets are trading at the moment. seeing as