haidi: welcome to bloomberg daybreak. shery: could evening from bloomberg's headquarters in new york. haidi: confusing and contradictory, new questions about the president's condition after doctors try to offer an upbeat assessment.

nix says the material could have an adverse effect. government would like state leaders to do more. check in on how markets are trading. u.s. futures are coming online 0.5% higher. we were bracing for some more turmoil this week after president trump was hospitalized late friday. we haven't had such big or huge losses. the president was headed to walter reed hospital for treatment. down a seeing it come little bit. 0.3%. gaining this after it dropped to its lowest level since june based not only on the uncertainty of

the presidents covid-19 diagnosis but oil supply concerns. the dollar was sort of steady in this -- in the close. fact that thehe u.s. jobs report is pouring cold water on the outlook continuing the u.s. economy adding fewer jobs than forecast in september. are releasing this tension in the markets where you aresee how reluctant bulsls to give up their positions. this is where the nikkei 225 chicago futures are. up just about 0.5% at the moment. across asia we are looking set for gains. major currencies looking stable going into more news flow and the headline that possibly the u.s. president may be released from the hospital as early as

monday. a big week for australian traders. the coronavirus budget to be delivered. by 0.1%.cks are up look at currencies. that is where we continue to watch for any reaction. fx markets pretty stable at the moment. -- outlook focusing on trading still at 1.05 per dollar. holding onto those gains. sydney with a public holiday today. let's get back to our top stories. president trump has greeted supporters, driving past a crowd. minutes before that the president teasing a surprise visit and thanking the doctors and nurses. pres. trump: it has been an interesting journey. i learned a lot about covid by

really going to school. this is the real school. i get it. i understand it. it is a very interesting thing and i will be letting you know about it. haidi: the presidents doctors earlier gave an upbeat estimate of his health after a series of contradictory and confusing accounts over the weekend, raising concerns that his condition was more serious than had been disclosed. >> the president has continued to improve. as with any illness, there are frequent ups and downs, particularly when a patient is being so closely watched. our chief washington correspondent kevin cirilli has the latest. the confusion over the timeline on the news flow continues, especially now that we are getting this report as to when the president had knowledge of his first positive test. president trump reportedly

could leave walter reed medical facility as early as tomorrow. the president has been putting out video messages throughout the weekend. haidi: some -- haidi: please continue your response, kevin. you were telling me he could be released as soon as monday. kevin: president trump reported the could be discharge from walter reed medical facility as early as monday. the white house has continued to put out video statements from president trump throughout the weekend, trying to reassure the public about his health condition. it also comes as new reports question the timeline in terms of when he disclosed his illness. the wall street journal reporting that he had taken a beforeest thursday,

appearing on a fox news program with sean hannity, then he awaited the test results of a more stringent, more accurate test. all of this comes as we are less than 48 hours away from the vice presidential debate in salt lake city, utah, and less than two weeks when -- from one president trump is set to take the stage again. according to the debate commission is still on schedule. trump -- he has made incredible comebacks. could he use this crisis to his advantage? we are already seeing him greeted supporters outside the hospital. >> exactly. e on thewith an aid president-esque about reelection campaign who said he will be

talking about this virus in real terms. all of this on the opinion that he will continue on a positive trajectory as they have been pushing out from the white house and from himself. you heard that in his most recent video remarks in which he said that he understands the virus. went to school for the virus. jason miller, the communications aide on the president's reelection campaign, saying publicly that he is fully expecting the president to want to get back out on the campaign trail, and to want to hold future rallies. shery: kevin cirilli with the latest. it is time for first word headlines. >> republican leader mitch mcconnell says the fast track for the scheduled supreme court pick not be affected by the presidents hospitalization. he says work will go ahead with a hearing anticipated next week and vote before the election. democrats say that any vote

should be held after adding that several senators in the chamber have covid-19. coronavirus numbers around the world are bringing new restrictions. voters will be ordered to close from tuesday. plans tol de blasio shut schools and businesses in nine parts of brooklyn and queens. u.k. reports a surge in new covid-19 cases. meanwhile, the australian government wants state leaders to raise spending on infrastructure to create jobs and to revive the economy. the finance minister says that all levels must drive the recovery. will present the budget on tuesday. the government will subsidize apprentice workers' wages. have agreed to accelerate brexit negotiations after a top-level call.

the u.k. ask about self-imposed deadline is less than two weeks away. both sides say that significant differences remain. without a trade deal, the u.k. will crash out of the eu at the end of the year. powered by more than 2700 journalists and analysts in more than 120 countries. back to you, heidi. corina, it is budget week and australia is preparing to ditch fiscal restraint. we hear from our colleague on what she expects. this is bloomberg. ♪

>> we know that the president is

in one of the high risk groups for serious consequences of sars cov 2 infection. >> we need to know the full extent of the outbreak. >> this will cast a great deal of uncertainty over the next few weeks. >> when you come to the marketplace, it puts on the table again, how long can the liquidity conditioning, which of, there this notion is no alternative to liquidities,, how long will this persist? >> volatility will be here to stay. >> the market will be pricing greater uncertainty for longer. >> we are in a world of unusual uncertainty. >> the issue here this morning is continuity of government. shery: some of our guests reacting to president trump's diagnosis. we are seeing the initial reaction playing out in real

time. u.s. futures contrary to what experts had expected since the diagnosis. the president heading to the hospital at walter reed on friday. is one of now bloomberg ceo advisors. knowing how to play the media. just did a drive-by greeting for supporters. could this put the blue wave in doubt and what are the market implications? the blue wave more in doubt. we have had such a volatile daysd with these last few in the weekend, and you can see the market reacting positively to the fact that he may be more robust than we thought a few hours ago.

they were deteriorating in the probabilities of the blue wave and biden's success were rising. calculation. poll i haven't had a chance to see the last few minutes but it will be fascinating to watch this evolution. what does this do to the investors trying to position themselves in the next two months? election may be contested. >> we have such a sequence of surprises.

we are diversifying worldwide. we would like some countries which handled the virus well, like taiwan or south korea. a the u.s., which is principal focus, we are focused on the beneficiaries. we do have a problem in the u.s., in state and local government units. they need help and the federal government has not passed another allocation to help them. that is a big issue. will it be resolved soon? i hope so. session, wee friday had not just the october surprise of the president's tweet, and the confirmation of testing positive for covid-19, but the horrible jobs numbers. this is kind of the definition

of a cognitive dissonance in the markets at the moment. are think that the markets looking at the upward path of the v and the recovery from such a deep plunge in march and april is very strong because it is coming so fast and from such a low level. markets are looking beyond this. 2021ts are trying to price and 2022 and are doing so optimistically. the robustness of the recovery going forward is key. the rest of the path is improving but that is because we came from such a low level to start with. shery: -- does the that end, dramatic headline make any impact?

does the result of the election actually make a difference to this rally? >> it can. we know certain things are clear. itsclimate change agenda, funding, and where those funds would be deployed under a biden victory is totally different than a trump reelection. we think that the climate change case is so strong. we are overweight wind and solar. we're much higher than market weight. it is such an agenda that is so important worldwide. note in that position because we think that biden will win. we think that the powerful thrust of climate change is now being accepted worldwide and it will reflect itself in investment capital in wind and

solar, the things that are so essential. haidi: we always appreciate your time with us. aremaceutical companies under extreme pressure to deliver the vaccine to combat the spread of covid-19. that pressure might be even more urgent following president trump's diagnosis. ceoson & johnson's discussed this following the diagnosis. today, the big news is that president trump and the first lady have contracted the coronavirus. is that a surprise to you that that could happen? aret demonstrates that we all vulnerable and we all need to be very vigilant and diligent in the actions that we are taking. the ceo of the

largest health care company in the united states, i think the 10th largest company by market cap in the u.s., market value of $400 billion, you have to be careful because it would look bad of the ceo of the largest health care company got the virus. what do you do to protect yourself? >> i think that all of us have a huge responsibility to take care of ourselves. myself, fortunate enough to be in the situation, where we have a responsibility for others, we have to put the sponsor ability for the safety of our family and friends in everything we do. that starts with the simple things. one of the things that we have learned most in the pandemic is making sure that we are doing social distancing. that we are doing everything that we can to prevent the spread of the virus. to make sure we can bring an end to this pandemic. >> you must be asked this about

every hour on the hour. when is your vaccine coming? >> it is about 15 minutes that i get asked. let me start by saying that i could not be more proud of the incredible work that our scientists and engineers have been doing over the past nine months to put us into the position that we are today. to think that what would ordinarily take five to seven years, we have been able to do in a matter of months is quite remarkable. we have a lot of work to do and we have made a lot of progress. we will be finding out a lot more. talkedent with what we about just recently when we announced the start of our phase three trial. we would expect that by early next year, we would be in a position to begin reviews with regulatory authorities to see if ,ur vaccine is safe, effective

and something that could be considered for an emergency use authorization in the united states and around the world? you have emergency use authorization, it is not going to be ready until next year. is that right? >> that is a good timeframe to be planning on. a lot of it will depend on what we find in phase 3. that will depend on the instance of the virus. that has an impact on the statistical analysis. it will depend on how well the vaccine is doing and what kind of efficacy rates are hit. purposes,r planning if you think late 2020, early 2021, those are the timelines that are the most realistic. shery: johnson & johnson chairman and ceo alex gorsky speaking with david rubenstein. come, mike pompeo is

cutting short his asia trip as the white house grapples with the virus. more on that and other developments with u.s.-china tensions. this is bloomberg. ♪

shery: tesla delivered a record number of cars worldwide. shipping on most 140,000 vehicles which is 10,000 more than expected. tesla has said it expects to deliver half a million vehicles this year which leaves the company with around 180,000 to meet its goal. shares fell more than 7% in friday trade. airbnb is reporting that plans to launch an ipo in september with -- in december with the aim of raising $4 billion.

the home sharing app is said to file the listing in november. southbound -- has been designed to operate in -- denied operating in london. transport for london say they found a number of issues that could threaten public safety including unlicensed drivers and vehicles. hola has been working in london since february. let's look at how we are faring when it comes to the set up in asia. despite all of the turbulence, and confusion over the information of the presidents recovery, we had tweets saying how well he is doing and it heldised drive-by greeting by him just outside the hospital. we are seeing the active futures trading in the positive up by 0.5%. futures are erasing all of these negative news flows that we have

seen since the positive diagnosis. we're looking like a pretty -- pretty positive setup. secretary of state mike pompeo's current visit to asia is being cut short. how significant are these developments? is the highest profile trump administration diplomatic effort before the election comes around the corner on november 3. it was important for pompeo to meet with the other members of the so-called quad alliance in the indo pacific region. of course, it is known as the quad. it is something beijing has made clear about its objection to the so-called indo pacific strategy from the united states. as the united states has elevated india to be a

counterweight to the rising influence of china in the asia-pacific region. tos meeting, he was due arrive last night in japan, but he will be cutting short the trip. andgoing to south korea mongolia as planned. he will stay until tuesday tomorrow in asia. perhaps he does need to go back to washington, d.c. as they are grappling with the coronavirus outbreak and the trump administration has launched operation maga to rally the troops and make sure that there is still voter enthusiasm ahead of the election. it is worth pointing out that mike pompeo and his wife have tested negative for the coronavirus. they: stephen engle with latest there joining us from hong kong. next, parts of new york are looking at tighter restrictions including school closures while

australia ask of a crowded beaches park warnings about increased fines in victoria. the latest on all of that just ahead. this is bloomberg. ♪ oomberg. ♪

>> you are watching daybreak australia. backdent trump may allowed to the white house from hospitalization amid questions about his health and treatment. the white house physician admits giving a misleading statement about the president receiving oxygen. the latest in a series of contradictory accounts. the briefing was intended to reassure the country but has left confusion about his condition. saudi arabia says is hoping for oil to rise 25% after analyzing the kingdom's prebudget statement. by breaking up government

revenues, the numbers in a statement are based on oil at $50 through 2023. brent has fallen below $40. the calculations are roughly in line with erg ermet. and the pandemic names a daunting period ahead. -- up for the first time in more than a decade back in march forcing the closure of two terminals. in its annual report, the airport groups as the battle has only just begun and say the situation shows no sign of abating. wildfires have destroyed more land in 2020 van in the three previous years combined. 8000 blazes have killed at least 31 people. the area earned is around 4 million acres which is more than double the previous record set two years ago. hong kong is to issue more than

2 billion u.s. dollars with current citizens to help the city recover. the financial secretary says that they'll carry a minimum interest rate of 2%. the hong kong monetary authority will hold a news conference monday afternoon. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. shery: surging virus numbers are forcing the mayor of new york city to force be closure of schools in non-essential businesses. the city has notched off 1000 or more new daily cases. the bloomberg health care reporter joins us now. where do we stand right now?

>> it is a moving target but as you point out the number of cases have risen significantly for the last six days so the mayor of new york city is shutting down public schools and private schools. indoor dining is on hold for the next week, up to four weeks. that will be put on hold in hopes that taking these kinds of actions will get the virus under control before the hard-core winter. we are also hearing that boris johnson is warning angry britons that it will be a tough winter ahead. >> it is interesting with johnson, how he has handled the outbreak. he was sick early on and realize the importance of taking it seriously. there is no easy answer here. it is not going to be getting better. he is holding on for the vaccine

to come through and if that does happen, that would be really helpful, but at this point it is difficult to say. it is here in australia, a long weekend. we have seen these pictures of beachgoers flocking in concerning numbers. there is concern with the of people abandoning social distancing restrictions. >> normal you think when you it is a beautiful day you are out at the beach and the risk of exposure is lower and you are to transmit, but when you get large numbers of people together, it is hard to transmit. they will have to take that seriously. give us the latest on

president trump's health. we understand he is receiving some state-of-the-art treatment with some medicines that the wider public would not know about. treatmentnt trump's is absolutely different than a most anyone else in the world would get. most powerful man in the world. he's getting his medicine in the way that no one else is and in a way that hasn't been studied. if he is getting these medicines and is not having the serious symptoms, it is concerning. it is also concerning if he is having serious symptoms. we are not sure what is going on. as the days come, hopefully we will get more clarity from the white house.

can get more on the virus outbreak in today's edition of bloomberg -- outbreak. it is also available in the bloomberg anywhere app. slowed inains september as many americans quit looking for work. house economic advisor larry kudlow spoke with bloomberg about the latest payroll report and the current state of stimulus negotiation. we have found ways and means to reopen businesses and even restaurants on a safe basis. that thelso say economy is reflecting that improvement. i still feel that we are in a recovery period, it's a v-shaped recovery. today's numbers were in line with consensus. the unemployment rate is strong

at 7.9%. we had blowout our sales numbers that folks are not talking about. i'm saying, we are moving in the right direction and we are succeeding in dealing with the pandemic and with the economy's recovery. that is an awfully good thing. when the president gets back on to make will continue his case that lower taxes and lower regulations and better back toals will get us the kind of prosperity where real wages have gone up for the first time in 25 years. this pandemic protocol as part of our message. >> a little bit of a tangent there, but i will forgive you for it. we help the president and the first lady get better. you mentioned the vulnerable, the people who cannot go home. let's talk about what the administration is trying to offer them. in the last weeks there have

been negotiations between republicans and democrats. do you think that they are real negotiations? will they strike a deal in the coming week? >> i cannot forecast that. it is the right question but i cannot forecast it. i can tell you that business is going on in the white house. expected touchin is have discussions with speaker pelosi today. we are -- they are asking for a lot of extraneous things that have nothing to do with covid and the economy. the split has narrowed but it is still wide enough. i would make this point, as i've said before, i don't believe that our recovery is dependent on assistance packages. but, there are certain areas which would be enormously

helpful. if the airlines need legislation for additional assistance, they are in big trouble. they are on the verge of nation layoffs and we would like to prevent that. expendingwe should be the payroll protection plan, for small businesses. there are 137 billion dollars that was unused. we need legislation to put that back to work. i get one million calls from ceos of large and small companies. we should help the schools. we have always had a 105 billion-dollar ask to help the toools reopen with respect whatever renovations entry furnishings and equipment. we should have a backup plan on legislation for unemployment assistance. we have gone into the executive order. we put out the extra $300. that is not going to last forever. i don't understand why our

friends on the others of the aisle cannot agree that these five or six basic issues that virtually everybody agrees with. zero is not going to help. or 1.5 trillion would be very helpful. if we need more later, we can come back later. you have to have some sense of compromise here to help americans who genuinely need help. this is not extraneous spending. this is emergency relief spending. we have been pushing this from day one. let's just get it done. other stuff that is out there, more political or ideological, fine, i respect that but let's deal with that in a separate pieces of legislation. shery: the white house economic advisor larry kudlow speaking to jonathan ferro. australia prepares to ditch fiscal restraint to tackle the coronavirus while banking on a

vaccine next year. we asked joe masters what we may see in the recovery plan. this is bloomberg. ♪

haidi: vs trillion government is expected to release its latest budget which is expected to release restraints. -- forecast will assume that

telling sky news earlier that ministers have factored in those issues related to a treatment. joining us now for our preview is the columnist joanne masters. right to have you. is it wise to be banking on a vaccine with any kind of certainty as to timeline or efficacy? reallyink that it is a difficult environment to be putting any forecast out there. the government has no choice but to work some assumptions into their modeling and into their budget. this stagetions at are very low and it is a whole range of scenarios that could play out. you haved of the day to put an assumption in.

it isdn't be surprised if about some scenario bubbling. really helpful for businesses and households to get a sense of what the different options could look like. haidi: we are also hearing from the prime minister and the federal government that they want the states to do more of the heavy lifting. i want to look ahead to what we can expect in terms of monetary policy. the octobere from meeting onward suggesting that we will see another cut before the end of the year. have we reached the limits of monetary poly -- monetary policy efficacy and is the government right? ammunitionot out of for the reserve bank. ofre are variety

conventional measures that they can put in place. rate told cut the cash 0.1 and do work around the funding policy and extending the yield curve control further out. there are things to do but it is pretty clear that you will not get a big bang for your buck from that. policy affects the supply and credit and that is not the constraint. the constraint is the lack of confidence by businesses to borrow and spend and monetary policy does not directly help that. that will involve the federal government and the state. a lot of times we talk about things like infrastructure that are typically done by the state. we need to remember that the federal government is in a

position to borrow at a cheaper rate than the states. it is multilayered but we need the federal -- fiscal policy to take center stage. haidi: there is a conversation about having these programs come to an end including the job keeper program. >> for the consumer, it is all about job security and how much money i have coming in. whether that money is being paid by my business, my employer, or whether that is coming through the job keeper payments, it doesn't really matter to me. seepect that we will policies that try to ease that income cliff. it's possible we will get a permanent increase of that unemployment benefit, if it does come to an end, it will be

replaced by other policies that try to support businesses. we are hearing some tax measures that will help cash flows. thingsill be a range of that try to offset the ending of that job keeper. haidi: how much reform focus will this budget have, and given that we are at this juncture we need productivity enhancement measures. >> absolutely. what i would like to see is not just a big budget but a bold budget. there are many things that we could do that would improve the efficiency of our economy. relations, red tape,

innovation, and we need to do that because that will allow us to run the economy faster which is what will create jobs, which is what matters to people and the treasurer saying this 6.9% unemployment rate and when we will start to think about fiscal repair. there will be some measures to reduce red tape, but there doesn't seem to be a sweeping reform agenda coming through on this budget. we seeto what extent do the limits of recovery being drawn due to the fact that we're seeing international borders reopen? arenternational borders incredibly important for australia. migrants have made up two thirds of our population growth. 1.5% foreen running at the year. compared to 0.5% for the average

economy. we know that we get a boost in spending to our economy but also from the sales transfer and other factors. at the end of the day it is a health issue. it will have an impact in the next year or two, the negative outward migration flow. we will see that flow to a drop in housing, to retail sales which have been falling for the last couple of years. at what point can we reopen our borders. the thing that leaves me feeling positive is that i still believe that australia is in a desirable location. once we open them we would expect to see this inflow that has been such a big part of australia. haidi: you mentioned retail sales. spending forecast have contracted in september.

at the initial months of the pandemic we saw the resilience of retail sales which was due to the pandemic buying. do you see a meaningful recovery in consumer sentiment without a travel bubble and the return of some tourism? retail salesk for is challenging. it has been surprisingly strong. and that has affected three things. we had a bit of that panic buying, and we have also seen people spending more time at home. home exercise equipment and the like. but you only by those things once and household income has been supported by things like job keeper. household income rose despite

the fact that the economy dropped. we on expect that to last. quarter, weber expect household income to be $23 billion less than it was. i think we are in for a week period for discretionary retail spending. shery: great to have you on. we are shaping up for a busy week is markets in asia have yet to be asked about president trump's diagnosis. he can always hear the latest from the big newsmakers from bloomberg radio, listen via the app, or bloombergradio.com. this is bloomberg. ♪

>> a check of the latest is this flash headlines. u.s. suppliers have been told they are now subject to export restrictions. says they are evaluating a tighter curve on operations which could have a material adverse effect on production. shares tumbling to a full-month low in hong kong last week. china says it will always safeguard domestic companies.

still considers a takeover bid to be hostile. says the approach is unwarranted. proposed an initial $4 billion purchase which is under 30%. the french government holds 24% of suez. indian commodities conglomerate posted tumbling profit as the nationwide virus slowdown production and demand. net income slumped $131 million compared to a year earlier. the billionaire is in the process of -- using a london-based company. us trillion equities begin trading at the top of the hour coming off the market -- australian equities begin

trading at the top of the hour coming off the market's worst lows. >> we have futures in australia trading higher and in new zealand as well. markets may have had time to get used to the positive diagnosis from president trump. perhaps a little optimism around the u.s. stimulus. it is already coming off of its worst week since the end of april. energy is the weaker factor among them. that may see more losses today because we saw the oil prices on the president trump diagnosis. the yen, the reliable risk parameter, propped on the news of the aussie-yen strengthening. that uncertainty not -- now favoring the yen as a haven trade. you could not really say with any certainty. there is a lot of uncertainty. the bank of korea expecting higher market volatility on president trump's condition. it will be monitoring markets

with vigilance. we have the reserve bank of australia here having its meeting tomorrow. the expectation is that the rba on fiscal stimulus. futures showing a cut by year end. it will be a nominal cut going down from 0.25% to 0.1%. as for the budget, tomorrow, a big day for australia. deficit of $220 billion forecast. the debt ceiling likely to be raised again. we should see a lot of spending around infrastructure. a couple things have been announced around the new manufacturing strategy. there are plenty of points to watch out for and what is expected to be the most significant budget in the postwar period. haidi: paul allen in sydney. we have a great lineup to get through including avon hearst for her political analysis on

the financial markets as president trump remains at walter reed hospital. we will be joined by the imax ceo who joins us for a look at the prospects for china's movie industry during golden week. still to come. this is bloomberg. ♪

>> good morning. we are counting down to asia's major market. >> our top stories this hour. confusing and contradicting. you questions about the president's condition after doctors try to offer an up beat assessment. asia-pacific markets set to react to the