>> 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 president's

changing condition. futures point higher in sydney and tokyo. the yen holding back. almost everybody is softbank thinks the group -- taking a group private is a bad idea. we will look about the chances of such moves actually happening. >> let's take a look at how we are kicking off trading in sydney. it is a public holiday. but we do still have the cash 4% in thep about 0. first two minutes. this comes on a busy week for australian traders. the budget where we are expecting to see assumptions made about a vaccine becoming available and we are also getting a report that is trillion is set to further lift that -- that australia is such a for the lift that debt ceiling with $4 billion u.s. dollars with the debt ceiling being lifted higher to $1.1 trillion. looking at the aussie dollar ahead of the all be a.

we are expecting no change. markets are significantly pricing and now another rate cut. before the end of the year. dollar trading at 71.67. in new zealand, two weeks out from the election. kiwi stocks up by .10%. looking at the kiwi dollar, trading at 66.37. we are starting to see when it comes to future, some calm. story with u.s. futures. maintaining gains up .5 percent. after markets fell on the friday session with president trump being hospitalized. of course we just had the president in the drive-by greeting supporters outside the hospital. we are seeing their risk off sentiment pulling back a little bit. the japanese yen weakening. it had risen in the past session. gained on friday on those risk off moves, and the japanese futures also pointing higher, .7% after stocks sell the worst

week since july. we are also seeing brent higher above $39 a barrel after it fell to the lowest level since june. onlyil market not impacted by the president's diagnosis but supply concerns. di: our top story remains president trump greeting supporters outside the hospital driving past the crowd in an suv. and it's before the president tweeted a video teasing a surprise visit. and thinking doctors and nurses. president trump: it has been a very interesting journey. i learned a lot about covid. i learned it by really going to school. let's read the book school. and i get it. and i understand it. and it is very interesting thing. i am going to be letting you know about it. president trump's earlier gave an upbeat assessment of his

-- after a series of confusing accounts of the weekend, concerned that his consent -- condition more serious than disclosed previously. continuedsident has to improve. as with any illness there are frequent ups and downs over the course, particularly when the patient is being so closely watched 24 hours a day. our chief washington correspondent has the very latest. of course we see throughout this process as he was hospitalized president trump very much still tweeting, very much still trying to maintain some ownership over the narrative here. kevin: precisely. could believep walter reed medical facility as early as tomorrow calling weekend in which he offered several video messages trying to ease some of the concerns. but not just americans but also those all around the world. theroject a president on

mend. and not a president who is in decline. it comes following questions raised about when the president first learned he contracted the coronavirus and also comes about 2.5 days until the vice presidential debate in salt lake city. and less than two weeks out from one president trump is set to debate democratic presidential nominee joe biden. in miami.ing week baton of unknowns as we head into this week. not volatility pertaining just to the president's health but also to the fiscal health of america as negotiations continue on the fiscal stimulus talks and the confirmation process of judge amy coney barrett. on the stimulus from the president did speak directly with senate majority leader mitch mcconnell. and took negotiations to social media on twitter to say that they are close to some kind of deal. >> what happened to that supreme court nomination? because we have a few republican

senators who have actually contracted covid, not to mention a few others who are in quarantine. what happens to that vote? >> that is the question and washington, d.c., this evening, sunday night new york time. there have been several senators on the senate judiciary committee, which is the confirmation committee, that will vote to approve and move forward, judge only conan -- amy coney barrett to a vote. step in the confirmation process is to go before the senate judiciary committee. senate minority leader chuck schumer, the top democrat, has said it would be irresponsible to continue to hold confirmation hearings given several senators contracting the virus. but i spoke with one republican senator within the last 24 hours and he said to me, there is zoo. -- there is zoom. republicans are not backing

down. they are moving full steam ahead with the confirmation process of judge amy coney barrett. >> the latest from d.c.. the first word headlines. >> surging coronavirus numbers around the world are bringing in new restrictions. bes and terraces will ordered to close on tuesday. mayor plans to shut bars and restaurants and nine parts of brooklyn in queens. boris johnson is worn britain's to expect a bumpy month in a very tough winter. meanwhile the australian government wants state leaders to raise spending and infrastructure to create jobs and read -- revive the economy. the finance minister says all levels must step up to drive a recovery. the treasury director announced massive spending when he -- presents the budget on tuesday.

issueile hong kong is to 2 billion dollars of inflation linked bonds to encourage citizens to help the city economy recovery. the financial secretary says i- bonds will carry a minimum interest rate of 2%. the monetary authority will hold a news conference monday afternoon to offer details. and the airport regularly named the best in the world says the pandemic means a daunting period ahead. traffic fell for the first time in more than a decade in march forcing the closure of two terminals. amid what it says will be a prolonged crisis. and it's an report, changi airport shows no signs of debating. 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. this is bloomberg.

haidi: alexion uncertainty poses the greatest victim markets this month in the early 2021. everyone inmost softbank thinks the going private is a bad idea. we have the details. this is bloomberg. ♪

>> u.s. futures are gaining ground right now and we are seeing more calm as we head to the asia open as coronavirus -- cases surge around the world not to mention president trump has a positive diagnosis. to discuss the economic impact with the chief economist jason zhang for. great to have you on.

i know there really nothing surprises us anymore, but we have seen president trump going through that drive by reading to supporters and now markets seemingly really surprisingly calm despite what is happening around the world. what you expecting as we head towards november 3? >> i think there are couple of things in a calm situation. one is the anticipation we might be moving towards the stimulus deal in president trump seems to be on the way to recovery. it is those things if we were not to get a stimulus deal and if that were not the case with president trump we would see something more volatile. but still, as we look at the weeks ahead, this election is one that could very well and in uncertainty. and that is likely to add further volatility for equity markets regardless of what we see in the next few days. >> why are we saying that reaction in the markets when it comes to a potential second or third wave of coronavirus cases?

we are hearing in new york we may close down businesses and schools. t that news getting the reaction we did in the past few months? degree it was. the nasdaq and the dow jones has spent their last months below the 30 day moving average. we've seen some pullback across equity markets and we are probably going to have a lot of trouble to go significantly higher if that specter of a second covid-19 wave remains out there and as long as election volatility looks like it is going to be high. >> we have got potentially a second wave around the world. we have got a president that's -- tested positive for covid-19 h away from an a volatile u.s. election, not to mention the jobs number superseded by other news on friday. at the same time you have very minimal markets losses.

is there a real tension that investors are not willing to let go of their positions? >> the fed story is one of the biggest as to why equity markets rallied throughout most of the year. ohat expectation of zer interest rate for a long time and continued quantitative easing. all of that has been supported for asset valuations. that is by far the biggest story, and as we look at 2021, planning ahead, our discussion with the clients we have is, those are, the fiscal policy stimulus and the fed's quantitative easing, those are going to be the two big pillars on which they will rest of the year ahead. thehen you take a look at risks to 2021 gdp and recovery, you say president trump, lower taxes, potentially more unrest and more uncertainty. by joee presidential win

biden, you are saying higher taxes by more consistent and may be a better handling of the health crisis. on the balance of things, which is better for markets? >> well, i think that the best case scenario is we know who wins right away. the worst-case scenario is it amounout for for -- for a months. in 2000 we did not know who won that triggered the recession in 2001. and that was against the backdrop of one of the strongest of not the strongest jobs markets in u.s. history because of high -- how high the labor market was the best in u.s. history. now the labor market is the worst in u.s. history. that means that growth next year might not be all four positive quarters. we could see negative contraction in the first quarter if we do not know who wins right away. knowing right away is the number one point but number two for

,arkets, if we have a biden win higher taxes will weigh on market but how much higher they go depends on how many people the democrats take in the house and if they can take the senate. let's turn back to those job reports. the job numbers we got because we continue to see the down trend in job creations. by your estimates the numbers could be far worse. where do we go from here if the low hanging fruits in terms of easy job gains have already been achieved? >> it is going to be much slower. equity markets are not gdp and gdp is not the job market. the labor market is always sticky. the unemployment rate is only slower going down there when it goes up, even when you look at the report on friday the inflation -- the official unemployment number 7.9% but if you look at that frequently asked questions, the unemployment rate number might

be 9.5% because of on this specification error and other data changes that have happened. but even worse is, of course, the jobless claims report where you see the unadjusted numbers for the recent week september 12 show there were 26.5 million americans claiming some level of unemployment benefits. that is a really, really big number. and that means that, even if we get recovery in the job market, it will take some time. these are big numbers we're dealing with. jason -- wenomist appreciate your time with us. pharmaceutical companies are under extreme pressure to deliver a vaccine to combat the spread of covid-19. the johnson & johnson ceo discussed his company's vaccine efforts with david rubenstein and the host of peer to peer. >> as we talk today, the big news is that president trump and the first lady have contracted

the coronavirus. is that a surprise to you that could possibly happen? demonstratesk, it we are all vulnerable and we still need to be very vigilant and diligent in the actions that were taking -- we are taking to prevent this virus from spreading. theiew as the ceo is largest health care company in the united states and the 10th largest in the entire unit states with a market value of $400 billion, you have to be very careful because i think it would look bad if this eeo of the largest health care company got the virus. what do you do to protect yourself? all of us have a huge responsibility to take care of ourselves and certainly those of us like myself fortunate enough to be in this position where we have a responsibility for others have got to make sure we put the safety of our employees and our friends and our families first in everything we do. look, that starts with a simple things.

i think one of the things we have learned most through this pandemic is by making sure that we are using social distancing, wearing masks or washing our hands. that we are doing everything we can to prevent the spread of the virus, are the most important steps we can take to actually bring an end to this pandemic. and in dealing with the long-term. >> you must get asked this about every hour on the hour. why don't i do this as well? when is the vaccine coming? >> it is usually about every 15 minutes i get after that. and let me start by saying, i could not be more proud of the incredible work that our scientists and our engineers have been doing over the past nine months to put us in the position we are today with a vaccine. that what would ordinarily take five or seven years, we have been able to do in a matter of months is remarkable. look, we still have a lot of work to do but we made a lot of progress and we will be finding

out a lot more in the coming weeks and months, but consistent with what we talked about recently when we announce the start of our phase three trial, we would expect by late this year or early next year we should be in a position to begin reviews with regulatory authorities to see if our fact safe,in effective, and something that could be considered for an emergency use authorization in the united states and more likely around the world. have emergency use authorization, to be realistic, it is not going to be ready until next year, is that right? >> i think that is a good time frame to be planning on. of it will depend on what we find in phase three. as you know, that can depend on the instance of the virus, of course, because that has an impact on the statistical analysis using in your study. it will depend on how well our vaccine is doing in the study. and what kind of efficacy rates we had. for planning purposes, if you

think about late 2020, early 2021, i think those are the kind of timelines likely most realistic. >> johnson & johnson chairman and ceo alex gorsky speaking with david rubenstein. oning up next, the latest the plans to take softbank private. new reporting shows almost everyone in the company thinks it is a bad idea. more on that next. this is bloomberg. ♪

>> softbank founder masayoshi son recently revived talks of taking his company pride may after the sale of its chipmaking but reporting suggest almost everyone inside softbank is opposed to the idea. let's discuss that with eric executive editor -- with our

executive editor out of tokyo. what is the reality behind these reports about the company being taken private? >> good morning. yeah, we wanted to dig into this issue because we have reported over the years that masayoshi son has raised this idea of taking softbank private. the talks date back to at least 2015, when we reported the news more recently we reported again he was looking at a. we wanted to dig into it and we were surprised to find out how much opposition there is within the company to going down this path. has beenntioned, son the one most in favor of it but there are many other people opposed to it. for a whole bunch of different reasons. theit has been raised over years, been discussed over the years, sometimes more seriously, sometimes less seriously. when the share price of softbank dropped sharply in march, they revived the talks.

there were active discussions about it. since then they have been tabled but the people caution it is not completely off the table. >> explains was why so many people are against it and how much progress have we seen so bio? -- for the buyout? >> the real advocate for the deal is son himself. son is the only founder of the company. he is chairman and ceo. any has about a quarter of the stock under his control. so he has a lot of power. what he has been frustrated with is the gap between the value of softbank and the value of the holdings that softbank has. softbank has many different shareholdings, but the biggest and most valuable is alibaba, the chinese e-commerce company. went public in late 2014 and the value of that stakes to pass the value of sons

company. he thought people were not giving him credit for what he was doing and as that gap widened over the years and narrowed, when it is wider he gets frustrated and has looked at this idea of going private. on the other side of the ledger, in terms of people who do not want to go through the process, there are many different reasons. probably beginning with the fact that masayoshi son can do pretty much anything he wants right now. he is not constrained by the board of directors or public shareholders. he has had plenty of ventures that have been eccentric. the size of the deal would be very hard to pull off. they wouldme that need to pay a premium on top of the existing share price, 20% or you'reone source said, talking about raising financing for $100 billion deal. which has never been done before. and with be very complicated and even in japan, where there is plenty of capital it is very difficult. >> great to have your thoughts. our asian tech executive editor

joining us from tokyo. here is a quick check of the latest business flash headlines. ola has beencked denied and the license in london. says itt for london found a number of issues that could threaten public safety including unlicensed drivers and vehicles. has been working in london since february. it will appeal the ruling. tesla delivered a record number of cars world while for the third quarter shipping one hundred 40,000 vehicles which is 10,000 more than expected. tesla is it said it expects to deliver half a million vehicles this year which as of the end of september leaves the company ,000 to meet its goal. airbnb plans to launch an ipo in december with the aim of raising $3 billion. it is said to be ready to file for the listing in november.

airbnb will filed initial paperwork in august and has been valued as high as $30 billion. up next, coming up, we are shaping up for a busy week in the major markets. we will discuss. this is bloomberg. ♪

>> we know the president is in one of the high risk groups are serious consequences of sars cov 2 infection. >> we need to know what the full extent of the outbreak is. pass a greating to deal of uncertainty over the next few weeks. >> and then when you come to the marketplace, it puts on the table again how long can the liquidity -- which has fueled the notion of -- there is no alternative to equities? how long will that liquidity condition to sit? >> morgan have over the next few

weeks. >> volatility will be here to stay. inthe market will be pricing greater uncertainty through november. >> we are in a world of unusual uncertainty. >> the central issue this morning is continuity of government. >> some of our guests reacting to president trump's virus diagnosing and the market implications. trading in australia's underway. japan opens at the top of the next hour. south korea will return after extended break and so will hong kong. let's bring in bloomberg's cross assets team editor for a preview. seeing the asx 200 seeing its best day in over a week. will the asian markets be able to ignore all of the virus and political noise? >> it does look like they are doing that. ,f course, you had the weekend so many different reports about things, but it looks like things are at least somewhat under control. there was the relatively upbeat

news about the message from trump's people about how he's doing at the seem to be somewhat under control. so, people are coming into the week thinking, thinking that it might be better than things were looking on friday. >> what markets are you focus on in particular today? >> japan is still interesting. after you had the outage on thursday and they came back to trading on friday. and they were down. the futures are up today but we will see if they can continue to come back from that because it was a pretty big deal. and then of course you have australia which is on holiday, but also it is right ahead of the rba meeting. things have a lot of that will hit on tuesday. it will be interesting to see how those markets react. korea coming back from its

holiday. what else will you be watching? watching basically to see the mood of the markets as you get into the brexit negotiations. of course, watching to see any more news about trump and just how that can affect the campaigns, the mood of everything, and a lot of people are talking about the u.s. election and how different markets seem to have different pricing in of the chances that the democrats will do really well. we could get a lot of different reactions from sectors from health care, on inflation prospects, there could be a lot more inflation if there is a democratic president. we will be watching to see what everyone is thinking in terms of that possible democratic seat. bloomberg's cross assets team editor. let's get to the first word headlines. >> republican leader mitch

mcconnell says the fast-track pickule for supreme court will not be affected by the president hospitalization. the hearing anticipated next week and a vote before the election. democrats say any votes should come after the referendum adding several senators and the chamber also contracted covid-19. unionk. in the european have agreed to accelerate brexit negotiations after a top-level call between boris johnson and leaders in brussels. the u.k. so proposed deadline is less than two weeks away. with both sides saying significant differences remain. seven months of talks ended in deadlock last week and without a trade deal, the u.k. will crash out of the eu at the end of the year. goldman sachs says saudi arabia is hoping for oil to rise 25% after analyzing the kingdoms prebudget statement. by breaking down government revenues, the numbers in the statement are based on oil at

$50 through 2023. brent crude has fallen below $40 as the coronavirus dips demand for energy. hermes. and the wildfires in northern california had destroyed more land in 2020 then in the three previous years. killedparate places have 31 people and destroyed thousands of homes and commercial buildings. the area burned is more than double the previous record set two years ago. temperatures were set to top 100 degrees fahrenheit or 39 celsius on sunday. 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. this is bloomberg. coming up next, 29 days until the u.s. election and variables changing by the day. a veteran political analyst for wall street joins us next to add up the new political calculus.

this is bloomberg. ♪

haidi: we are kicking off the asian trading week with relative calm after an unprecedented level of news announcements and events over the past few days. we are looking at across the markets rejoining the fray from the holiday early last week.

seoul kospi futures holding steady. we are watching the markets. as it reenters. meanwhile, across asia, we are looking like nonchalance almost across the trading action here. taking a look at how we are faring when it comes to the asx. with the rba expected to hold. and another rate cut by the end of the are. there is also the budget delivery that we are watching this week. as the government calls on states to do more of the fiscal heavy lifting. you are seeing gains of 2% on an early report as we heard the treasury will be looking to raise again australia's debt ceiling to over one dollars trillion australia. -- twoi stocks turning weeks out from the national election there. and the nikkei is trading up by -- .1%. we are seeing a bounce back when

it comes back to u.s. futures, erasing the turmoil we had on friday not just from the president's diagnosis but terrible jobs numbers as well. investors are closely watching reports of president trump's health. our next guest sees the events over the next 72 hours as a major setback for his reelection hopes. she is a veteran of political analysis and a partner ahead of global strategy edited by syria from avon hearst and joins us from london. we appreciate your staying up this late in london for a sprint does this really move the needle? we are getting all indications the president is doing ok. he's certainly trying very hard to manage the media narrative with his tweets and his surprise video this morning, the drive-by greeting. does it change things given that we know there is not a great deals of voters that have not made up their minds at this point? >> you highlight a couple of the

key points. when the first first -- when the news first came out the present had been diagnosed i was overwhelmed with inquiries from investors asking is this a host? -- it was a hoax? and i think by the same token people are going to want to see toe clarity, more evidence feel like this state of is how this being accurately reported. but there is another point i think that is maybe a bit lost with the overwhelming news flow that we have had. the initial public opinion data the u.k. where boris johnson had a symphony bounce when he was dying is what the, americans do not seem to be granting that same kind of boost for president trump.

the us a sense than americans leave that he brought it on himself and there is a possibility of some blowback from the drive-by around walter reed hospital you just mentioned. there were a lot of people in the car with the windows rolled up. you know that we have been burned by polls before, for years ago. a couple of interesting polls that have come out. that three out of four people survey think the president did not take appropriate precautions. you talk about not getting that sympathy pumped that boris johnson head. is there a risk that would be outraged that he is getting unprecedented level of treatment that ordinary americans would not hope of getting in a situation where you have 200,000 people that have died from the same disease? i think the risk is a more

narrow one because remember that the president has really been pushing for overturning the affordable care act, a.k.a. obamacare, and that contrasts with the vip treatment he seems to be getting at walter reed. withact that people pre-existing conditions will not be able to have medical coverage if be act is overturned and one of the points the moderator tried to bring out at the presidential debate of course was that the white house has not come up with an alternative plan. of what is all part makes the pandemic experience in the united states so different from what we have seen in europe, whether as a social safety net and people who are sick can stay home from work. as well as get medical care. >> president trump it is a political survivor. of turning a master

the narrative around for his political gain. if he comes out of this covid-19 infection pretty much unscathed, what is the likelihood given his past history of really dealing well with those crisis situations, that he is actually going to come out stronger, going to be able to talk up the narrative that he has been having since the beginning of this pandemic that this is really nothing more than the flu? >> been a bad flu, which is the case he has been making. incrediblybe an advantageous, not to mention lucky outcome, for the president. he cannot control it. it is clear he has been given a full cocktail of drugs, some of which are experimental. this suggests also that he has a more serious case. on this we will have to wait and see. there are couple of signposts. one is the next presidential debate, i suspect the structure

onthe next one, after the edifying spectacle we had last week will be different in any case. if the president is not well enough to participate in that, then that will be an important this for his campaign. on the cap --g the campaign trail is incredibly demanding. are we going to have the last few weeks of this race be via n?itter and televisio we never had an october surprise like this with just a month to go. >> we know it is not only the president was been infected. it is about to people within the white house, not to mention republican senators as well, which has really put some doubts on what happens to this up in court nomination and the hearings going forward. how much does he need to fast-track this appointment? >> for many of his conservative

supporters, specifically the white evangelicals who have been -- lukewarm on president trump recently, the confirmation of amy coney barrett is of huge significance. risk in thisother vacuum is that we currently have 8 supreme court justices evenly if any court of --4-4 important case were to come up before amy barrett is confirmed. but there are many questions about whether that can be rushed through went three republican senators have been diagnosed, two on the senate judiciary committee. does the confusion and the conflict of information that we get from the white house, from the president's dr., we have now got this latest report saying that the president actually knew about his results from a rapid

test earlier then went he disclosed his results and went on foxnews. does that make it difficult to give advice as to the level of risk in the scenario we are dealing with? difficults it more and that is part of the reason i haveave suggested that suggested investors need to consider a wider range of tools when they consider the outcomes. we used to be able to say game theory and historical parallels will help us to be able to at least work out the balance of probabilities. in the case of a close race, which this could still be, at least close in the electoral college says with a couple of states like florida really, very unclear, very up in the air where they might go. plus the possibility of supreme court challenges under a variety of scenarios. you can see that markets have

been much more volatile around elections, reflected in the dollar. and the news flow is pretty head spinning. that we needised to think about u.s. elections in the way that, as i was trained as an emerging markets specialist, to think about less developed democracies with a wider range of outcomes. and that is a big change in a way that political risk is distributed. >> let me finish by throwing up this chart when it comes to -- this is real clear politics odds when it comes to joe biden, rising after that contentious first debate. we are also looking ahead to the vice presidential debate. what are you watching for? are we going to get more substance in rhetoric and this debate? and what can it do to boost the odds for either candidate? >> i think we need to focus on

the direction of polls and momentum. and, after the presidential debate, the momentum was clearly behind joe biden. how ainterested to see significant shift have been made 50 older white men, over four biden. we know it will come down to the battleground states turn out and everything else. the vice presidential debate on wednesday night, that never moves the needle historically. but, given the prospect that candidateshe two vp could well in the circumstances become president, sooner rather than later, the emphasis on essentially their capabilities for the job, kamala harris and

mike pence will be much more important. it is usually political theater. these are both real contenders for the office of president and possibly soon, given just the age of the two presidential candidates. having you want. thank you so much for your time. a late evening for you. the partner and head of political global strategy at avon hearst in london. of the first major u.s. city to implement a lockdown says she hopes president trump's covid-19 results served as a wake-up call for presidents. the san francisco mayor is facing pressure to reopen the city faster after imposing some of california's strictest measures to contain the virus. she spoke exclusively to bloomberg about what the president's condition means for leadership during a pandemic. is unfortunate when anyone gets covid. is that peoplee

are, especially leaders, are leading by example. i do not like wearing a mask but i wear them. socialt like so-called distancing. but i understand i can infect somebody and they can infect me. it has to be about the behavior i model so that others can -- they need to understand how significant this is. and how they could basically be to a densely populated city like san francisco. and this is important. from my perspective, this is why from day one i have tried to communicate everything i know and the facts and use data and the decisions -- in the decision-making process of this virus and just to remind people, yes, we wanted to be over, we are tired but covid is not tired of us. go awayt going to because we wanted to. we have to do our part. have been following the president's lead on this

entry open potentially faster than san francisco did? theer if you think president's condition will change the way this plays out and change how the other cities and states are reacting . >> i hope it does. i think what it shows people is that no one is immune. it can happen to anyone at any given time. and, when you think about someone who is possibly elderly and may unhealthy, it could be even worse. the impacts of covid could be devastating. this is a wake-up call for so many people who are refusing to wear masks, and who are moving forward with their lives as if nothing is wrong, as if we are not still in a pandemic. and they should be an example for sure. ts are falling sharply and in san francisco, how concerned are you, and economic slowdown in san francisco, given that tech companies are paring back

workers and people are leaving the city and that means you will have a lower tax base? >> i will say i am very concerned. i just balanced the budget with a $1.5 billion budget deficit. and, not to mention, there are have200,000 people who filed for unemployment in the city. we have businesses that have been -- that i have been going to since i was a kid that have closed permanently. i am definitely concerned about the economic impacts of what is happening. it is not about just tech companies. it is about business in general. in light of covid and working from home and having more flexibility and cost of living and, also, the number of tax measures and other things that have really put us in a situation where i think we are going to have some challenges over the next couple years. but the fact is we are san francisco.

we are a major city and people love coming to this city, they love working and going to restaurants in the city. so you cannot just create this someplace else in a suburb. you only get what you can get from a place like san francisco by being in a place like san francisco. it is going to be hard for us for some time, but i think eventually we will get back to a better place. the san francisco mayor speaking to emily chang. you can get more on trump's health and the marketable occasions in today's edition of labor -- of daybreak. also available on the mobile. this is bloomberg. ♪

at seoul, aooking beautiful sunny day. south korea returns after the holiday. we've seen the korean won pretty strong last week against the u.s. dollar. the economy seems to have improved with exports rising 7.7% year on year for the months of september. we will be watching the market open there. for now let's get a quick check of the latest headlines. united airline says it is ready to offer a nonstop service from

san francisco to shanghai. flights a weekur with passengers no longer having to stop over in seoul flights to china than any u.s. carrier before suspending services in february. it will use the triple seven -- 777 planes for the trip with tickets on offer. china's top chipmaker says its u.s. suppliers have said they are subject to export restrictions. it is evaluating the impact of tighter curves on its operation and it could have a material adverse effect on production. report sent shares tumbling to a four-month low in hong kong last week. china says it will always protect domestic companies. japan -- has agreed to buy avalock. ce deal will see any purchase, a state from -- a

stake from think this -- from pincus. next hour,n the daybreak asia, we will speak with the chief global market strategist. the markets open in seoul and tokyo next. this is bloomberg. ♪ so you're a small business,

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haidi: asia's major markets are now trading, our top stories this hour --

confusing and contradictory, new questions about the president's condition after doctors stay upbeat, markets rise as investors welcome more positive news from washington. washington is cutting short mike pompeo's trip to asia, he will be skipping visits to south korea and mongolia. back leads the movie world , imax posted is best over opening weekend for the holiday. "daybreak: japan -- >> japan and south korea coming online, we are talking about a best gains in about a week, this coming off their worst week since july and capping the tumultuous week that saw the first ever full-day halt of trading for japanese equities. real estate and materials leading the gains nikkei right now. we are seeing weakness for the japanese yen, this is after gaining sentiment on friday as we had president trump's

coronavirus diagnosis. still, the one-month dollar yen volatility climb to the highest since august, take a look at what the kospi is doing. south korea coming back from its holiday and right now the cost beginning to tenths of 1%. the korean won at the moment was strengthening a bit against the u.s. dollar, we have seen significant strength for the korean won, a weekly gain against the u.s. dollar and in fact it is one of the best-performing asian currencies in the past month alone with the taiwanese dollar. gains,we are also seeing hefty gains in this part of the world. weekend,as seen a long we are seeing gains to 2% now trading at the highest, the most since september 23 with every sector essentially trading in the green. this ahead of a big week for aussie investors. no change expected, markets are starting to -- another breakup

before the end of the year and also significantly we have the delivery of the federal budget. we are expecting infrastructure spending to take place and we are also seeing reports of that the lifting of the debt ceiling will happen over one trillion trillion dollars there as well. this as a governor -- government wants the states to take a lead. we are seeing gains when it comes to the aussie 10 year yield as well as kiwi stocks up by just about .1%. shery: let's bring in the chief global market strategist at axes, great to have you with us, it looks like marcus are not ready to give up their bullish positions, what are driving the market means and can it be sustained given that we have so much uncertainty including rising coronavirus cases globally, election uncertainty, we also have u.s.-china tensions, what is going on?

americans have reacted pretty well on friday given the headlines near the biggest drops we've seen in the last 30 or 45 days. it is encouraging since the markets -- mechanisms in the markets held up especially in asia where it tends to be less liquid and even compounded by the fact with gold -- byhink markets are relieved those mechanisms and that can point about -- back to the stainless that are getting offered up by governments around the world. ons brings back into focus the u.s. stimulus package and what is going to happen on that front, that is the big question. i think the markets are probably leaning towards a more optimistic view that perhaps president's health scare could expedite on that front a bit quicker than the current narrative. shery: does that mean we will see continued weakness for the dollar? this chart showing how the

bloomberg dollar index weekly performance has been to the downside, despite the fact we have saw -- we saw some safe haven bumps along the way did what does that do to asian currencies? i mentioned earlier how the korean won and taiwanese dollar have been doing really well. >> my view is selective on the dollar, i am not calling it a weaker dollar across the board, i like it on the asian side because especially the yuan and other trade proxies i view favorably because of the positive macroenvironment and also for the fact that asia has pretty much cleared the virus to the great extent. a lot of these economies are dependent on export economies to the developed world and those are lagging a bit. i believe those will fire up again. in the meantime, the regional trade is doing quite well into this has been quite supportive. overall, i like the north asian currencies because their stock markets contain a large portion istech and i think tech

going to continue to do well. of --s driving a lot we have seen a little bit of move out of u.s. markets into the asian markets. i look favorably to those currency markets over the next, especially when we start looking at china's dual mandate which is going to extend from now until 2024 and that is going to include more liberalization of the one policy and perhaps a move into fully integration into the open markets. what do you like in asian tech then, do you see valuations less daunting than what we see in the u.s.? >> the valuations are daunting anyway you look at them, that is a problem. i think when you start present valuing these future gains, or member you are buying future gains for infinity into these stocks. when you start resting value

back to a 0% interest rate, it looks like we could be at this lower zone for another five years possibly. i think the tech stocks look attractive, also if we couple that with the ongoing stay-at-home mandates. there stock people will reopen offices, but if you start taking signals from some of these colossal employers like deutsche bank who are suggesting their employees are going to stay home, i think that could even normal as we move forward into the next few years before the offices reopen to any significant level. haidi: when you look at the muted market reaction, you have got u.s. futures bouncing back in the early part of the session, is there a sense that there is not a lot of tension in the markets? that there is an unwillingness to let go of the positions we have built up until now even with such extraordinary news flow we have had over the past few days? exactly, this is i think

getting reflected to the low volatility in the u.s. rates market, i think that is the comfort zone that leads all to holding onto their position. we had a spike in rates volatility to some shock to the markets. we could see a greater risk off figured even trying to out what the new narrative is even if we get a democratic election, it is not all negative. factorse we are going to in the negativity in the corporate tax index, but how do you interplay the larger amounts of stimulus coming into the markets? will bethat biden lathering the markets with stimulus and also the tax redistribution policies, these are quite inflationary. i think stocks are liking that narrative and i do not think people wants to give out some of those earnings or some of those stocks for those reasons alone. haidi: always appreciate your

time, let's get to karina mitchell for the first read headlines. surging coronavirus numbers are being nourished sections, they say bars in paris will be ordered to close from tuesday. here in new york city, mayor bill de blasio tends to shut schools and businesses in nine parts of brooklyn and queens. case numbers are surging in the u.k. and prime minister boris johnson is warning britain to expect bumpy months ahead and a very tough winter. the australian government wants state leaders to raise spending on infrastructure to re-create jobs and revive the economy, the finance minister says all levels must step up to drive the recovery. the treasurer will drop fiscal restraint and announced massive new federal spending when he presents the budget on tuesday. the government will also subsidize apprentice workers wages. hong kong is to issue almost 2 billion u.s. dollars of in --

bonds to encourage citizens to help the economy recover. the financial secretary says the bonds will carry a minimum interest rate of 2%, higher than previous similar issuances. the monetary authority will hold a news conference monday afternoon to offer more details. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists in more than 120 countries. i'm karina mitchell, this is bloomberg. next president trump visit supporters outside of the hospital as he and his doctors try to strike in up the tone, we have the latest from washington. plus imax scores a record-breaking box office weekend as china celebrates the golden week holiday, ceo richard gelfand joins us later. this is bloomberg. ♪

president trump briefly left walter reed medical center earlier greeting supporters gathered outside. the president had tweeted a video teasing the surprise visit and spoke about his experience with covid-19. >> it has been a very

interesting journey, i learned a lot about covid. i learned it by really going to school, this is the real school. this is not the let's read the book school and i get it and i understand it and it is a very interesting thing. the president's doctors have given an upbeat assessment of his condition after a series of contradictory accounts over the weekend which raised concerns that his health is more serious than previously disclosed. our senior editor drew mark -- drew armstrong has the latest. what do we know so far given that we have had the series of contradictory statements, obviously the president right now is trying to project an image of good health and of recovery. reality is we do not know a whole lot. his doctors who have given these very short briefings outside of walter reed in washington dc

have made a number of conflicting or confused statements. he even admitted today saying he purposely misled the public about the status of -- in order to -- it has been very difficult to get an assessment of what really is going on. it seems the president's getting vip treatment at the hospital getting a cocktail of antibodies not to mention this eczema this own -- this stared -- steroid that you would not give someone that is not that sick. what is he getting rhino? >> we know he is getting three specific drugs including other pharmaceuticals. he has gotten and antibody cocktail made by regeneron which is a highly extremity drug that essentially attempts to mimic the immune system response that's -- that a normal person would have if they had some defenses against the virus.

he also got a drug called remdesivir that is antiviral which is attacks the virus itself. and then we heard today that he got dexamethasone, that is a surprise because it is typically reserved for patients who are getting much more severe, needing oxygen support. it is a drug given much later in the course of a disease when you need to tone down inflammation and the immune system. this is a disease people talk about in two phases, one which is the attack of the buyers phase and two witches and immune information. they can be the most damaging part in itself, that is what has gotten people confused. is he getting this drug because he is worse than doctors are indicating or is it eating this drug because they are trying to be more aggressive even though the medical knowledge we have does not dictate that? shery: we are hearing the president could be back at the white house as early as monday,

we saw him greeting supporters, how safe is it to be around the president right now? we know he was not alone in that suv. >> i do not know what to tell you about that other than every piece of public health advice that has been given is that if you are sick, stay home and do not be around other people. do not expose people potentially. i do not think many people anywhere would willingly want to go and be around a known covid of theirt some phase infection us, it does not make sense. shery: that was drew armstrong era senior editor for health care there with the latest on president trump. u.s. job gains slowed in september and many americans quit looking for work suggesting the economic recovery slowing as a vaccine or fresh government aid. larry kudlow spoke to blumberg about the latest payroll report

and the current state of negotiations. >> we have found ways and means to reopen businesses and even restaurants on a safe basis. i would also say, the economy is reflecting that improvement. i still feel that we are in a recovery period, a v-shaped recovery, today's numbers when properly adjusted were in line with the consensus. the anaplan arena has fallen to 7.9%, we had blow out sales numbers last night that folks are not talking about. i am saying we are moving in the right direction and we are succeeding in dealing with the economy'snd with the recovery. that is an awful good thing and when the president gets back on his feet, he will continue to make his case that lower taxes and lower regulations and a

better trade deals and energy independent will get us back to the kind of prosperity where family incomes and real wages have gone up for the first time in 20 years, it worked. this pandemic protocol as part of our message. hopes and ihose hope the president and first lady get better. you mentioned the vulnerable, i've been talking about the people that cannot afford to go home. let's talk about them and how the administration is trying to help them. there been negotiations between the public and democrats. it has been difficult to understand, do you think there are really negotiations, do you think you can strike a deal in the coming weeks? >> i cannot forecast that, that is a tough question. it is the right question, but i cannot forecast that. i can tell you business is going on in, secretary mnuchin is expected to have discussions with speaker pelosi today, i spoke to stephen earlier this

morning about a number of matters. we are still apart on our asks. they are in our judgment asking for a lot of extraneous things that have nothing to do with covid in the economy. the split has narrowed somewhat, but is still wide enough. i will make this point, as i've said before, i do not believe our recovery is dependent on a assistance packages. but, there are certain areas which would be enormously helpful. to quit, the airlines need legislation for additional assistance, they are in big trouble and on the verge of major layoffs. we would like to prevent that to help the workforce. be extendingshould the payroll protection plan for small businesses, there is actually 130 billion some odd money that was unused, we need to put the back to work. i get a million calls on this

from ceos of large and small companies. we should have the schools -- help the schools, we have a voice had asked to help the school reopen to whichever renovations and re-furnishings and testing and equipment to do. we should have a backup plan on legislation for on appointment assistance. we have got until our executive order, we have put out the extra $300, that is not going to last forever. i do not understand why our friends on the other of the aisle cannot agree to these five or six basic issues that virtually everybody agrees with. zero is not going to help. one trillion or 1,000,000,000,000.5 would be helpful, if we need more later, we will come back later, but you have got 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. let's deal with that in separate pieces of legislation at a different time. larry kudlow there speaking to bloomberg, still to come on daybreak asia, mike pompeo is cutting short his asia trip. we'll get more on that and other developers on u.s.-china tensions next. this is bloomberg. ♪

the coronavirus outbreak within the white house is cutting short mike pompeo's current visit to asia, for more on that let's go to our chief north asia correspondent stephen

in hong kong. and do we know about this how significant is this that his visit will be cut short? >> i think the fact that his visit is being cut short is less significant than the visit itself. this is the most high-profile trump administration diplomatic effort abroad ahead of the election on november 3 and it is a way to send a message to china that the alliance the united states has informed to battle or aunter the debt should be counterweight i should say to china and that is why the united date has this indo pacific strategy rather than asia-pacific. they are adding india to that in the australian -- austria, japan, and denies states. the foreign ministers of those countries will gather in the next two days and pompeo instead will not go to south korea or mongolia, this time around. the trump administration is

saying that mike pompeo may go to asia again before november 3 which is of course the election date or sometime later this month. these four countries as we know have had issues with china. the united states in the on -- ongoing battle for supremacy if you will, you had australia in a diplomatic row, of course india has a borderline dashboard or conflict with china and japan for its part is an ally of the united states has a new prime minister. there is lots to discuss between now and wednesday when mike pompeo will head back to washington perhaps to take part in the efforts to convince voters not to lose motivation ahead of the november 3 election. of course other headlines may be taking up the front page at the moment, but let's not move -- lose sight of the trade front, between the china and the u.s. we have got the list of elements when it comes to china's largest chipmaker and some of these american export restrictions. onthis is a story i reported

one week ago today on monday last week when we had heard in -- and bloomberg news has gotten wind of a letter to u.s. chip manufacturing companies that they would have to apply for expert exemptions. they are going to sell to semiconductor manufacturing international to, known and thatlly as smic stock has doubled down to a four-month low since the news last monday. they now in a statement have confirmed that u.s. suppliers have been issued letters from the u.s. bureau of industry and security that they are subject to additional export restrictions and in that you --nt, smic says that moved by the united states could have adverse effect on its production and operations. haidi: our chief north asian correspondent with the latest,

let's get you a look at the latest business headlines. united airlines says it is ready to offer nonstop service from stanford go to shanghai, it'll have four flights a week from october 21 with passengers no longer having to stop over in seoul. they offered more than any carrier before suspending services in february. softbank backed ola has been denied a license to operate in london saying it has failed to meet passenger safety standards. transport for london says it found a number of issues that could threaten public safety. they have been working in london cents february, they say they will appeal the ruling and continue to work as normal. a record number of -- tesla has sold a number -- record number of carson's the third quarter. that is more than 10,000 more than expect it. tesla has said is that is expected to sell more than half a million vehicles this year.

that means they have 180,000 to go. shares fell more than 7% on friday. next we have a picture on asia's factory recovery slowing in september. this is bloomberg. ♪

this is daybreak asia i'm karina mitchell with the first work -- first word headlines. president trump may be allowed home later monday amid raising questions about his health. white house physician sean conley admits giving misleading statements about the president receiving oxygen, the latest in a series of contradictory accounts about his infection. the briefing was intended to reassure the country, but has left confusion about his condition. meanwhile, mitch mcconnell says a fast-track schedule for supreme court pick amy coney barrett will not be affected by the president's hospitalization. he said work on the confirmation will continue with hearings

anticipated next week and a vote before the election. democrats say any vote should be after adding that several senators in the chamber also have covid-19. union haved european agreed to exonerate brexit negotiations after a top-level call between boris johnson and block leaders in brussels. the u.k. saw deadlines that for a deal that is less than two weeks away with both sides saying significant differences remain. talks were in deadlock last weekend without a trade deal, the u.k. will crash out of the eu at the end of the year. californian northern now destroyed more land in 2020 than in the three previous years combined. 8000 separate blazes have killed at least 31 people and destroyed thousands of homes and commercial buildings. the area of land burned is more than double the previous record set two years ago. temperatures were set to top 100 degrees fahrenheit or 39 celsius on sunday.

global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists in more than 120 countries. i'm karina mitchell, this is bloomberg. the asia pmi data is out after last week's batch showed a mixed recovery in the month and we are seeing better numbers for south korea, singapore, taiwan. for south korea, just to hear below the 50 line separating contraction and expansion, not surprising given the south korea september export numbers raise for the first time in seven months. singapore improving, taiwan jumped to 55.2, when it comes to the composite pmi numbers coming in at 46.6, the final number actually much better than per limitary. same thing for the services pmi at 46.9. let's bring in our editor

kathleen hays, let's start with those manufacturing numbers from south korea and taiwan, really an improvement over the previous months. yes, let's start with korea because remember, korea is the bellwether for exports and therefore it tells us a lot about what is happening in manufacturing not just in korea, but across the region. as you mentioned, we do see that almost att to 49.8, 50, almost at the dividing line between contraction or finally expansion. that would be about 50 and they have not been above 50 since december of last year, so this would be a milestone. there exports did rise in the latest months for the first time since february, but a lot of that with calendar fx stuff. the holiday adding it a couple days to the counter. --is still a challenging

when you look into it because they have had rising memory chip exports that we are seeing looking ahead falling prices, that will be a headwind for them. they are handling the virus quite well, so that is a plus. broadly speaking, as we look at the region, china's recovery is good for everybody. beyond that, we could global demand and the threat of the virus may spread -- week liberal demand and we -- the virus may spread. when we move on to taiwan i want to show you their chart of --erts because, some very good numbers on experts, a record 8.3% year-over-year rise in the latest month. one of the things is supplies are trying to ship parts to huawei ahead of the u.s. tracked crackdown on suppliers

sending them their parts. at any rate, another thing helping taiwan experts -- exports, rising demand for work from home products. there are things you have to buy when you do that, so you have to do that. mention, they to have already moved above 50. the market pmi sagging a bit, but electronics exports are helping singapore. we just got some breaking news crossing bloomberg, we are getting confirmation that the chinese military aircraft did southwest air defense identification zone on sunday according to a statement from the taiwanese ministry of national defense. that is talking to one of the chinese antisubmarine warfare zoneaft entering taiwan's on sunday. we have seen repeated versions

of this happening over the past few weeks and of course comes as we are doing to have mike pompeo arrive in this part of the world in a shortened visit as well. let's get back to some of the eco-data at hand, what key takeaways from the japanese services pmi? was hit not as hard in some ways by the virus as other countries in asia or around the world. many people say they have handled it better than many, however, as they went into the pandemic and a third quarter contraction with two quarters already under their belt. that is partly due to the tax spike, last year. another thing we know about the pandemic when we look at japan, this latest number which did get a bit better, 46.9 after 45.6 in august.

the september number getting closer toward the 50 plus region where everyone wants to see growth. the low was 21 point five in april, so when the virus first hit like many countries, services were hit far -- heart -- hard. they are restaurants, retail shops, where -- places where people have to go buy something in person. i could be speaking about just about any country in the world when i talk about services. japan getting better, that is the good news, still a ways to go. kathleen hays there with that analysis. the world bank president says covid-19 is a catastrophe for the world's poorest as nations struggle not just with access to protective equipment but also the longer-term impact on economies and education. he spoke exclusively to bloomberg tv. helping inmasks are

the larger parts of the world. one thing we did starting in april was to create programs where countries could choose the different protective equipment that they wanted to bite with financing we could provide. that has been a successful program because it gives choice to the countries and there is a variety of activities going on in order to counter the response. was i did this week announced the expansion of that program, my board is looking at it now to cover vaccines. a critical thing for countries that they begin to respond fully to the crisis and get people back into their livelihoods. that is critical because the poverty rates are going up so fast. >> across this nation there is cultural inferences in the wearing of masks, i know at colorado college there is 100%

usage of masks at all times. they mention the variability of mask usage in the u.k., right now, india is front and center. what has the world bank learned about india's protective abilities? covid is a giant catastrophe especially for the poorest people. peopleeconomy shut down, who were in the informal economy did not have the ability to buy protective equipment, masks, and they did not have an ability to have social distancing or space. india is hit particularly hard. waves ofserved is infection in the developing world. it is a very challenging environment. one of the problems is children are out of school and we think there are one billion children

out of school. they have a problem that they move backward in learning when they are not going forward, when they are not in school. we have sizable programs to try to help make school safe and begin allowing people back to school when it is safe and when they are ready, wearing masks. >> erasing an incredible point, this idea of the toll this has taken on the least advantaged both in the united states and around the world. talkd some come out and about how this emerging world is facing a debt crisis, a social crisis, how much oxygen is the drama in the developed world with the election and virus getting worse take out of the room from getting aid to some of -- from some of these wealthier nations and getting it to those that need it? wealthier say the nations have been generous and one of the challenges is using

the eight available as possible.ly as countries need efficiencies to do the distribution of the equipment and also if vaccines become available, that is actually a complicated process to vaccinate a lot of people. we are beginning that preparation phase, we are working with countries so they will be ready if there is a vaccine area you are exactly right, the inequality of this extends. countrieseveloping relied heavily on remittances from workers that work across the border or somewhere else. that has slowed down, the biggest problem is there markets have severely declined. they were used to shipping products to europe, there is not as much amend. the good news -- demand. the good news i would say economies in advanced countries

are showing recovery. if you look at the quarter over quarter data. that is a start and will help the developing countries a lot. i would say there is generosity in the world, the complication is covid is a really bad virus and so that is just hammering poor people. world bank president speaking with bloomberg there. be joined bywill imax ceo richard gelson to assess china's film industry after the golden week holiday and the outlook for movie theaters around the world, that is next. this is bloomberg. ♪

let's look at how things are faring so far at the start of this aging -- asian trading week. we have seen stocks moving higher. this has been a frenetic pace with headlines over the u.s. president's health, he is diagnosed with covid late last week, but we are seeing the recovery rally taking place. the nikkei 225 up by 4/10 of 1% at the session. we are also seeing the kospi return to trade after the long weekend. recent strength when it comes to south korea this year, projecting the kospi could remain resilient.

for 10th of a percent is what we are seeing in a south korean stocks trading at the moment. we are seeing when it comes to creating in australia, gains go from strength to strength, 2.3% higher. now expectations of another break by the end of this year, but also a budget that is very high in fiscal spending plans, that is due to be delivered this week as well. new zealand bouncing back into positive territory. weekend ined a great china, imax's best opening we can for the holiday up by a quarter over last year despite 75% capacity limits at cinemas across the country. and though many hollywood phones are pushing back releases into next year, china is leading the recovery of the global movie industry since theaters began to open in july. joining us is the ceo of imax.

great to have you with us, tell me what you are seeing in this weekend and i suppose your expectations or whether the strength of this rebound which we have started to see across the board whether you talk about for industrial indicators or retail spending and consumer sentiment in china, really take hold? richard: i think it is remarkable as you said in your introduction that capacity has been constrained to 75% and yet we did 25% better than our best year. i think that is clearly an indication of where people feel safe and in fact, they are safe. they wants to resume their lives, they want to go back to movies. they want to go back to restaurants. they want to do a lot of things and i think china, in particular, the asian in general is ahead of the western world. as you know, it is not gone as smoothly in a lot of businesses as it has in china and i think the indications are quite good that they want to get back to normal.

haidi: at the same time around the world you have got more of an accidental crisis as to whether businesses like cinema can actually survive. with china, given the recovery we have seen, does that mean keep intact their expansion plan? richard: i do not think the message of the rest of the world is survival, i think from the china experience we know that there is pent up the man's foregoing to this enema. -- cinema. go,now people are going to in the united states, that is the other end of the spectrum where people do not feel comfortable at this point. i do not believe it is an existential issue, i think the lessons of china not just from the weekend, you go back a few weeks ago to win the 800 came out and that had -- did $115 million in its opening weekend which is i think in the top 10

chinese local language movies of all time. i think the question is when the rest of the countries in the world going to catch up to china and when his hollywood going to feel comfortable releasing their blockbuster movies globally? haidi: so what does that mean in terms of adding more screens in china? wellrd: we have done very there, we have about 700 plus screens open, we have another about 300 in backlog. we have signed a few deals this year and china up -- another with another operator. there is great demand in china and as we speak, we are opening new screens there. there is also a lot of dialogue going on. china is our largest market in the world for imax, it is about

40% of our screens globally even though we are in 82 countries. to give you a reference point, in north america we have 400 and --i said in china, several 700 with several hundred still to go. the demand is growing there, the chinese consumer wants to go to the movies. the chinese consumer is also brand conscious, they want something innovative, next full are looking thing. it is a terrifically promising market for us. shery: what other markets are you optimistic about? richard: a number of them, japan has gone very well for us in recent years. i think we have about 35 theaters open with a backlog opening. korea, we just signed a large deal with cg be, -- largest cinema operator there.

we are opening another eight or 10 in korea. saudi arabia is a rapidly growing market as you know, there was note cinema in saudi arabia until about a year ago and since it has opened, it has been very successful. i think we have 25 theaters slated to open in saudi arabia. fasthey cannot build them enough. i think western europe also, once it starts to feel safe again and cinema it's back to normal, i think that is a good market as well. the meantime we see coronavirus cases surging globally and here in the u.s. we continue to hear talk of potentially shutting down some schools and businesses closing. you say that survival is not an issue, but is it survival until you get the vaccine and what will that look like? will we see more bankruptcies of theaters in the meantime? richard: that is the right question is what happens between

now and the vaccine. for imax we have a strong balance sheet, we have over $315 million in cash, our cash burn is less than $9 million a month, but now that china is open will be less than that. we have a long runway and a lot of staying power, for cinemas in general, they tend to be much more levered than we are. i think there will be some short-term cash issues. i think what they will have to do is manage their spend rates until there is a vaccine and hollywood releases more films and they can come back in a direct way. i think most of the major ones have raised capital ring the last several months with the financial arc it's very amenable. matter of cost a control and how soon it reopens. >> what about the availability

of content? we know the newest james bond has been pushed back to april. we know disney is experimenting with the streaming experiment. is there in the chinese market a gravitation towards made in china films? i would also like to get your insight into if there is so much demand into cinema going, why was mulan not as successful as expected? richard: in china there is demand as well as japan. imax has been in china since the year 2000, we launched relationships with film makers and studios in china. we have 10 local language films available between now and the rest of the year, so there is a lot of content going on there. i think movies got pushed because in north america, it did not open up as quickly as china. there are a few reasons for that, one is people do not feel

as good about the virus, you talk about infection rates, they are more weary about going to out of home makes. sue's. also in china they were very intelligent about the way they reopened, they opened about one month before some of the blockbuster movies came out, so people got comfortable going to theaters. then when the movies opened, it was a natural progression. in the u.s., because of local regulations, it happened very suddenly and the movies came out right away so people were not conditioned to go. if you read the data, they did not note cinemas were open. , the resultsulan were not as good in china as expected, but i think that had more to do with how the movie played rather than any safety concerns. it was great having your thoughts, the mx ceo their

joining us with the latest. we'll have more insights on deals this year -- bloombergnders joins markets later at 10:30 a.m. hong kong time. this is bloomberg. ♪

of the's a quick check latest headlines . buy -- nec has agreed to

a tech company at more than $2 billion. the deal will see any purchase a stake of -- which owns abound that around 35% of avelox. chairmanis held by the and place, the deal will complete by april of next year. buy -- -- has agreed to which would create one of europe's biggest payment platform. justransaction was offered over one in a half shares. giving shareholders 70% of the new company and see a stakeholders the rest. the deal has taken more than a isr to complete, nexi already the biggest services coming. honda jumping after announcing plastic with formula one. even though it would leave rebel and its junior team seeking a

new engine supplier, honda has been in f1 on and off since the 1960's. hour, the national security expert alan dupont josiah's -- joins us next. this is bloomberg. ♪

in beijing.ne :00 welcome to bloomberg markets, china open. the reopening of trade after a long holiday of markets in hong kong. our top stories, confusing and contradictory, new president -- new questions about the president's condition. orchids are up as investors welcomed positive news out of washington, c.