it's yr outurn to lose weight, look great, and be healthy. get off the floor and get on the aerotrainer. go to aerotrainer.com, that's a-e-r-o-trainer.com. -- goodin mining morning. set this -- ron extends its decline after withse -- relations worsen aging spending -- it is not clear what sparked the move.

finalizing a blank check operation around the frenzy. haidi: trying to take that winning streak into a seventh straight session. retrading pretty optimistically. we are seeing gains about .25% when it comes out the gate. the aussie dollar trading on the back. we are seeing gains for almost two weeks straight now ahead of the federal election. at kiwi dollar is sitting 37. we are seeing almost no

change through the open. have nikkei futures not doing much at the moment. is at a one-week high -- the u.s. dollar dollar. 15% on year.e than from those that we saw in session. operations restarting. speak, theng, as we morning training -- trading has been lead due to the storm. we are talking about the tropical storm being upgraded to a storm signal eight.

options have been delayed. they will make a further later, but there will be no morning a warning isuch lowered. dominating across the markets. let's turn to tom mackenzie. we have been talking about trade tensions when it comes to australia. haidi: another potential lesion tension. tom mackenzie has more details. what do we know?

sources are telling us that steel mills in china and power have been told to stop using australian coal. they have been told to stop unloading australian coal. that is according to our sources. you might say this to be an escalation in the tensions for well over a year china has used coal istime it seems being disrupt that as a result of this. it is not a major issue for china. they are mostly self-sufficient that. the other is used steel mills and does rely on import. they can get imports from other countries,

but there will be a delay on the back of this. we have heard from the trade and ministeraustralia -- from australia. we have already context disrupt in the last 12 months or so. shery: australia is one of the most dependent economy in the world. it does not help that there is friction between the countries of this.t -- from all put in placee actions around influence ,ampaign, chinese influence whether legislation, or police action, to try to curb influence. his investigation into the

origins of covid-19. then you have the assault on australian writers and journalists, have been based here in china. an australian writer has been detained for almost two years and recently indicted on allegations of espionage. --roadcaster and anxious anchor for cnn has detained. mike smith of the financial review was forced to flee the country last month, after being quizzed by members of state security in beijing. on a number of fronts, there are tension. -- tensions. it does not like there is an opportunity. about you can find more

ban on our-- coalm website. let's turn to karina mitchell. 20% of the economy faces scarring in the coronavirus pandemic. a virtualor told event that aviation and tourism industries are particularly worried that the economy is already session and facing the worst contraction on record year, up to 7%. >> it will be quite real. emphasize the digitalization and digital skills that people need to pick clear that many

hard --oing to find it are going to find it hard. the trailnt back on negative -- after just 19.tive for covid positive for covid 19. the portion of americans dying in covid-19 are the highest in the developed world. early on, the rate was lower than other parts of the country, including u.k., spain and the netherlands. the number of fatalities soared. global news, 24 hours a day, on

air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. haidi: still ahead, chinese stocks are nearing all-time high. -- highs. vision funding. that is next. this is bloomberg. ♪

haidi: let's take a look at some of the coal related stocks. we are trying to gauge for , suspending coal imports. we are seeing downside most

currently -- significantly. the group declined to comment on the story. mind, coal miners will suffer the amount, given the demand when it comes for iron ore is pretty robust. shery: let's discuss the markets . gaining.market index our next guest says they are still a bargain, despite the run-up's. the head of equity, great to have you with us. really not created world. equal. where are you seeing the opportunities?

emerging-markets have very nice rebounders already. focusk we should really on countries that entered the pandemic crisis from a position of relative strength. they had a really healthy balance sheet and reserve. they have certain policies to respond pandemic more effectively than other countries. is urging market asia, eastern asia -- emerging market asia, eastern asia, trying to avoid countries that rely on a single economy dependent on commodities. also, countries with not much credit. lack of policy credibility.

shery: let's hone in on china right now. we are getting tons of data out of china. i want to turn to u.s. china tension because we heard from bridgewater. what he thinks about china's growth. take a listen. >> time is not on china's side or the west's side. -- u.s.'s side. destiny is on the side of china growing and doing better, probably. about thet is talking economy and how we are a huge rebound -- seeing a huge rebound. i think china's economy has

aster.d -- recovered f happened earlier in china, a couple months earlier than the rest of the world. the economy recovery has been pretty steady. improve,experts china's market might have a potential risk. it is driven by x or and -- export and the real estate market. better thaneems to before. we still have to be more cautious about the chinese market. yuan: does a reversal of

-- particularly as we have added to see it take on the role of urrency? an anchor c appreciate versus the dollar.u.s. i think the currency strengthen has every -- strength has everything to do with the prosperity of the country. they seem to be effective in containing spread. expect thatpeople behind people -- the currency will appreciate. haidi: taking a look at the broader asian rally. it is one of the most encouraging indicators we have seen. about 60% of the benchmark

members. is it encouraging, as to what the next leg up is going to be? that you are seeing a broader rally take place in the region? >> yes. it is expected to return to the model, which forecast much more on the long-term prospect. i think a lot of the asian countries, the price level is very attractive. always a pleasure having you on with the -- with us. the world bank is calling on g20 nations to extend that until the end of next year. world'sation for the poorest nations is likely to worsen.

helpshould be done to people from falling further into poverty. >> has already gone bad. that is showing up in the numbers and likely to get worse. one notable part of the global be session in quality. in 2000, there was a great financial panic. andit people's bond market fully as. it did not have as much effect on the developing. world.loping it is likely to deepen if there is further shutdowns. the advanced economy, the recession has actually been less severe than estimate in june. for the developing world, the worse -- has worse --

been worse. the other developing countries are in a worsening recession. they used to be a stigma attached to asking this question , whether the cure for the virus and the approach is worse than the disease, given what you are seeing playing out poor countries. -- in poor countries. assessory will try to but for the poorest in the world , covid is a problem, but a bigger problem in no jobs and this problem food shortage scarcity. one thing that hit the developing world hard that they got cut off from workers working out died the country. that might be of five -- outside

the country. thatff rather suddenly -- got cut off rather suddenly. it is down 10% from what it was a year ago. that means help problems -- children.blems for malnutrition is on a deep -- steep rise. >> let's talk about how you are planning some of the issue -- to offset some of the issues. planme through how far you to extend. shallowly providing relief. we need to do more. said thathas done is

the poorest countries, should not, given the severity of the this -- starting may 1, they were able to stop paying their debt service, principal and interest, to official bilateral creditors. the richer countries, plus china. they could stop payments. commercial creditors were supposed to join that initiative as well. thanks and hedge funds. hedgen -- banks and funds. countries for these -- we are talking about the worst countries in the world, still paying their debt, in some cases. that should be broadened and extended through 2021.

up next, supreme court nominee cast herself as someone who would put her personal profit aside -- preferences aside. this is bloomberg. ♪

shery: the supreme -- haidi: supreme court nomination devolved into a clash over obamacare, that pandemic and an effort to shift the court more to the right. she tried to steer clear of policy debate. clients have a responsibility to the rule of law, critical to a free society. they are not designed to solve every problem or i be wrong in our public life. the value judgments of

government must need -- be made critical branches -- by politic al branches. more -- let's get mor e. tell us more about the first day. >> what we heard on the first day were opening statements. present a chance to their arguments to the american people. focused mostly on health care. unifiedsented a fairly message. potentialine with the 6-3 majority conservative.

court in atting the position to legislate. abouteally spoke a lot her time as a professor, her time on the circuit and a lot of the accolades she has collected over the years. the clash on the first day, we are acting -- expecting it to continue. shery: this is only day one. can we act -- what can we expect? >> probably tension on the topics that we heard -- expansion on the topics that we heard today. issues.will rule on

she will likely not say how she would rule. that is common with nominees. ony do not say how they will -- rule on cases. actually a republican senator said he would about that. another senator said he would -- support adidate candidate who said roe v. wade was wrong. they will really try to pin her down on how she thinks about these issues and about the law. shery: our reporter with the latest on those supreme court nomination hearings. outlining plans in the next two

weeks. details from our interview. this is bloomberg. ♪

karina: this is daybreak: asia. relations between australia and china are worsening with beijing suspended australian coal treated mainland power stations have been ordered to stop using australian coal immediately. it is not clear what sparked the move, nor when beijing and canberra are at odds over any great into the coronavirus. is facingation bts criticism after one of its members commented on the korean war. the band's leader said that

south korea shared pain and the remarks of angered social media users in china. beijing back to the north. samsung has pulled bts branded devices from its website in china as well as jd.com. north korea is launching a new work drive the head of the january congress of the workers party. the add campaign begin with a massive rally in pyongyang hours after a military parade showcased a new ballistic missile. kim jong-un was absent from the rally as leaders told people to work harder to bolster the fragile economy. a fragil similar drive was in 2019. equity trading in hong kong is facing disruption. tropical storm is passing southwest of the city and may bring when gusts above 100 kilometers per hour. the government says schools are closed but hong kong is warning

of trading delayed canceled for the day if the signal remains enforced at noon. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts. i'm karina mitchell. this is bloomberg. shery: softbank's vision fund will outline plans for a blank check company in the next few weeks, seeking to capitalize on investor frenzy surrounding special purpose acquisition companies. so far this year, more than 100 spac's have raised over $40 billion on the u.s. stock exchanges. scott minard told bloomberg about the scott raising vehicle at the milken institute virtual conference. >> it has to have the right investment opportunities. $15 billion with one of the

companies that we have 10% going public and has gone up 10 times in chinese real estate companies. $75 billion valuation. generally, we invest $10 billion. the problem is not to come up with financial or alternative sources of capital. it is how do we deploy it right now? >> so, scott, is the spac an investment vehicle whose time has come? is it perhaps a little bit of financial engineering? >> i didn't say that. >> ok, perhaps, forgive me for misinterpreting. let's just that is it an investment vehicle whose time has come or is it merely a manifestation of speculative excess? scott: i think speculative excess, just like in other areas, is accelerating its growth.

but the spac as a vehicle is ultimately going to be transformative for the capital market in a way that was similar to high-yield bonds and became transformative for the capital market. there were lots of fits and starts in the early days. building the business that he built. of course, later on, there were a lot of abuses in high-yield bonds, of companies that really shouldn't be borrowing money in the capital markets getting cash. just like this, you know, the history of spac's is a pretty dismal one. of all the spac's that have been done, over 70% of them are -- i think that has to do with two things.

one is a lot of the money is coming out of the retail sector because investors like us would say, wait a minute, this guy's going to dilute by 20% and he's also got -- which is going to dilute us further. what is so special? bill basically bought and is putting up capital out of his fund where he will make the money on it from his fund shareholders. i think as we devolve, and it becomes more of an institutional vehicle like bill ackman has done versus three guys in a garage with a dog deciding they should do it, i think the quality of the spac's will gain more respect ability with institutional investors.

>> let me add one final point. scott put it rightly. the way companies raise money from the capital markets is changing anyways with direct listing. direct listing is being allowed to raise capital when you bypass the investment banks which is disruptive and great but why leave money on the table? spac's will do that. as scott said, we are going to do it ourselves with our own capital as an investment vehicle. we are going to put our money in because the company, it is ideal for companies that are ready to go public five months from now. they want to do it with certainty maybe six months earlier.

those are the ones we invest in and take them public with us paying. it is telling the company we are a private investor but we are and take you in public and put in $500 million. scott said, it will be an investment tool. that was the softbank vision had fund and and guggenheim global cio scott minard speaking to erik schatzker. let's get more on softbank's plans to launch its own blank check vehicle. sarah mcbride joins us out of san francisco. tell us about the implications and opportunities raised by this. sarah: this is an almost typical next step for softbank which tends to take trends that people

are very interested in already and just jumping on them, like it did with its vision fund when it came in with $100 billion, creating one of the largest infusions of cash into venture-capital, dwarfing other funds. , who is verye well-versed in all kinds of financial architecture would want to jump on the spac bandwagon. i think they will go all in. -- sorry.e spoke shery: go ahead. say i i was just going to spoke to somebody who said that similarly to the vision fund where softbank went out and sought outside investors, it will do the same with its spac

vehicle, some money will join with money from outside investors. point theear at this size of the investment that softbank will make. shery: did we hear anything from reports last month that softbank has a whale? sarah: well, he spoke about that too. he made all kinds of mammal analogies. he kind of played down the reports that they were the softbank whale and said they were not even a dolphin. that it would take so much money to move markets to the extent they were given credit for, that they couldn't possibly be a whale in that way. who knows? he's the master at spinning things one way or another.

idea in play down the his particular ways. great torah mcbride, have you on, are venture-capital performer. we are watching the offshore yuan on its biggest tumble in the past few months. we have insight next. this is bloomberg. ♪

shery: mark is very much focused on the yuan later today is the currency probably judged for the most in almost seven months. let's see what's watching the currency space. here is sophie. sophie: taking a look first at the aussie dollar which is holding above 72. trading steady even as beijing stops coal imports. the light and blue has helped lift aussie dollar but at christie's economics pointing to the rally for the aussie losing steam given there is some pressure on iron ore prices from chinese demand and that is seeing some cooling. forecasting 73 by year end for the aussie and 74 by early 2021. we haveon watchers, seen the currency rally to an april 2019 high, testing a key

level on stock flows and current account surplus. virus stimulus has been a boon. increasinglyshift to monetary policy tool while holding rates tomorrow. sales,de some debt holding a meeting on the new deal initiative. september trade is on the docket, the offshore yuan is holding steady after falling the most since march on monday on the pboc's move. while several strategists will see more appreciation, some technical headwinds may be pointing to concerns for the offshore yuan five-month rally. the chart illustrating a pivot study and you can see the 2020 hi challenging the most significant level for the offshore yuan in red. the currency is now testing a

key support level as marked out in green and that is also coinciding with a 50% civil retracement of the offshore yuan in 2018. tentacles pointing to some headwinds for the offshore yuan. haidi: let's get more analysis with khoon goh. good to have you with us. the do you make of some of yuan trade? we know the pboc does not want it to week or two strong either so is there a reversal of this rally? khoon: i don't think we are seeing a reversal of the rally. if anything, we have been doing consolidation which is healthy because we've had a very strong run since june. consolidation especially heading into the major event risks coming up with the u.s. election and very important political meetings in china is appropriate.

i don't see pboc movement. it is necessarily wanting to reverse the yuan. i think they are taking advantage of the fact there is no depreciation concerns and they are removing the impediment . it is a way of encouraging onshore participants to hedge currency risk. if you look at economic performance the vergence, there is still the case it will outperform. khoon: definitely. and arom fundamentals flows perspective, think the outlook is still very positive. from a growth recovery perspective, they are leading the charge in asia. andontinues to accelerate it is one of the very few economies in the world to hold positive growth this year.

guarantee we will see into theng robust chinese bond market. that is very supportive to the yuan. shery: we have a few central bank decisions this week, including from the monetary authority of singapore. we just heard from the managing director talking about the state of the singapore economy before we get the gdp numbers. take a listen first. >> it will be quite real. thee i emphasize digitalization and digital skills people need, it is also and manyt many jobs activities that play an intermediary role as a middleman are going to find it very hard to come out of this long after

the pandemic is over. is expected at of the monetary authorities decision this week but really, how much can they actually do given singapore faces some structural issues as well? khoon: that's right. directorthe managing paints a reality that what the economy is now dealing with is structural factors, not necessarily cyclical ones. that is not something on a terry policy is suited to do which is i am not expecting them to do anything tomorrow. i think they have done all they can in terms of the double easing they did on march 30. some of the regulatory forbearance with moratoriums, they have been very helpful. in terms of the structural issues, that is really something that needs to be left up to fiscal policy to do all the

heavy lifting on that. shery: another policy decision this week. we do have the bank of korea coming out at a time when the korean won is seeing incredible strength against the u.s. dollar. what are we expecting on that front when already we have seen them also do a lot so far? bojn: i'm not expecting the to adjust their policies at all. already 0.5% is effectively at the lower bow. the current economy is starting to recover. exports are positive. i think with the recovery in --na, that will health helped lift the korean economy. the boj has a long period of hold. they will focus on financial stability because that is something else they are mindful

of. a long period of low interest rates could start to see too much risk being taken, leading to financial instability. one of the things they worry about is house prices which has been rising. that is going to keep the bank of korea on the sidelines for some time. shery: it is great to have you want because we can do the rounds with all these asian economies. let me turn to indonesia and what you are expecting from the rupiah because we also have the omni dusbus bill and job creation being passed. khoon: omnibus bill passing is positive. reforms have long been talked about and it is good to see that front. implementation is the key. while it is positive for the rupiah, think investors will want to see further follow-up in terms of commitment from the malaysian government. i am somewhat positive going forward, it is just we need to navigate this current period of

volatility and uncertainty before we see a return into indonesia. we appreciate your time with us, head of asian research joining us. let's take a look at how the australian coal players and minors are reacting given the story we heard from chinese politicians with steel meals being told to cease accepting imports of coal from australia. this has seen deteriorating relations between beijing. we have seen it down by 5%, off session lows. it was down by 6% of one point. we are hearing the australian government is seeking to curb on this report that china suspended purchases of australian coal with these heightened diplomatic tensions. the non-coal pure miners are faring better, down a quarter of

1%. 6/10 of 1%.n by this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. ford with optimism about its recent leader shakeup in the redesign of the f-150 truck.

shares enjoyed the biggest rise since early june, climbing to an eight-month high after raising its ratings to buy. an analyst says the new team and good third-quarter earnings will provide a further boost. ford around eight dollars in late february. southwest aims to buff the industry trend of cutting by opening up in chicago and reviving its presence in houston. the move to o'hare and george bush international set up a clash with united of american as airline travel demand edges up. southwest left bush international in 2005 and has never serviced o'hare. southwest has added services in miami, palm springs and colorado. one of the aviation industries with plans of the coronavirus downturn seems to be working. tickets for its pop-up restaurant sold out in just half an hour. ashas two of its a-380 temporary dining places as the

carrier finds new ways to raise money. dinner in a sweet costs under 500 u.s. dollars, although economy drops to $40. let's get a check of asian markets. shery: take a look at that. we are on the way up now. the asx 200 gaining 9/10 of 1%, the highest level since march. two sessions of gains. tech and utilities leading the minersut we have the picking ahead and you will be watching those in just a second. take a look at kiwi stocks as well because they are at record highs right now. 10 sessions of gains, the longest winning streak since october 2017 for both the aussie dollar and the kiwi dollar. they are under a little bit of pressure given we are seeing the weakness and tracking those losses. nikkei futures higher at the moment after japanese stocks fell off the worst day of the week.

as we have the japanese yen holding steady, about one-week high against the u.s. dollar. kospi futures gaining 4/10 of 1%. we've had an incredible rally for south korean stocks as well. gained for eight consecutive sessions, at a three week high. the korean won is not what an 18 month high against the u.s. dollar. it is really close to breaching that key technical support level of 1150, haidi. haidi: yeah, you mentioned earlier, we are watching coal players trading in sydney. concerns that we have a chinese import ban when it comes to australian coal. the latest we have heard from the prime minister, telling media they are making approaches to chinese authorities in relation to speculation. saying they are taking those reports seriously and they want assurances from chinese authorities that china will continue to honor the deals, the terms of the china-australia free-trade agreement and their obligations under the wto.

we are seeing downside about 5%. haven doing much better. we are seeing moderate don wnside with some of these miners that have greater exposure to iron ore. 4.25% of 1% as we wait for this clarity. coming up, we will be previewing china's trade data. we are joined later to see whether this recovery narrative can continue. coming up next, we have the market open almost upon us. we get the trading outlook with mark tinker. he says we need to put aside the sideshow, the theatrics of the u.s. election and take a harder look at the longer-term usa versus team china story and those tensions. all of that to come in the next hour of daybreak: asia. this is bloomberg. ♪

asia, welcome to daybreak i'm shery ahn. haidi: and i'm haidi stroud-watts in sydney. hour, bigories this tech lead u.s. gains, the one holding its overnight highs. australian mining stocks coming under pressure, suspending imports. the morrison government seeking

clarification with beijing. investors are counting down to the latest numbers that will show if the proposed virus recovery is continuing to gather momentum. shery: japan and south korea coming online, let's get to the market action with sophie in hong kong. sophie: stocks are gaining ground, the nikkei to 25 adding .4%, softbank rising more than -- begin holding and anz coming out with upside to go long on the , and checking in on the open and south korea after an eight day game, we're seeing

that event being extended. slightly under pressure but still trading on april 2019 highs, given the impetus we've seen from stop flows and current account surplus. and we have the boj decision on wednesday, some upbeat commentaries from that and president moon holding a meeting on the new deal initiative. checking in on the session in istralia, trading at a march but call stocks under pressure in sydney on china's coal import ban preview the aussie dollar just holding steady this morning and we do have the premarket session in hong kong being canceled on the strong signal being raised but the hong kong dollar still trading little offshore yuane this morning holding to overnight losses, the biggest decline since march.

stability likely to be seen from chinese stocks with bullish signals. haidi: bridgewater associates found that china has an advantage over the u.s. on a range of issues. our next guest says investors thed be wise to focus on key strategic issues between the superpowers. mark joins us now from hong kong. ray dalio said that china essentially has time on its hands in terms of performing , policymaking is centralized and they have greater control and demographics at this point still in their favor as well. how does that work out postelection? you say he nor team loop versus team red. mark: that's right, good morning. america has been positioning

itself as us, or the u.s., versus them. that's how they are addressing the rest of the world. you're either with america are you are with china. in that sense, this kind of u.s. foreign policy, this is prior to the election, very much will continue whoever wins, democrats or republicans will become team blue and china will be team red. therefore we will have a lot of ongoing struggles because you're either europe or australia. you've got politics, and u.s. are importing any of our raw materials, the u.s. are sending tourists and students. so china has the economic argument for why you should be with them and america has an argument about how they are

evil, bad communist and therefore you must not deal with them. it's a real source of tension something i believe investors should be thinking about now rather than the focus of the blue versus red and democrat versus republican, which is dominating everything were looking at. i'm just saying that's a we on the fact that we've kind of pushed to one side for the last few months. indi: and if you look at it the sense of this is a strategic relationship that's generating tensions rather than a partisan one, it's going to be long term. we know that beijing seems long-term, they've had these rolling plan since the 1950's. what do you do as an investor when you're looking at chinese assets to try and capitalize on that? mark: there are chinese assets, one of the things is very important, as you mentioned at the top of this section there about what's going on this year and why, and you're basically

seeing a strong move in the offshore chinese currency in the last quarter. we saw it basically bounce yesterday from the levels it had gotten to back in q1 of 2019. but the story behind it is that ,eople are buying chinese bonds they are buying chinese bonds because it's an increased amount being committed. they are buying chinese equities, and the big dog coming up the path is financials. focus,obably going to u.s.-based international investors are going to say this is the world's biggest ipo. , aor to that it was aramco declining fossil fuel company with a lot of cash flow.

but this is growth in technology , this is fintech, chinese consumer, everything you want to get exposure to as a growth investor. america not floating in , are we really sure that china theontent to leave -- assets were looking at art also just china, although there is increasing his poster to the chinese consumer. ,s the whole intra-asia story that you can't really play by u.s. equities because it's going to be asian equities, whether they are quoted in hong kong or in shanghai. shery: this chart on the bloomberg shows how chinese stocks are near those multiyear highs. we seen with the u.s.-china tensions how, say for example,

about a year ago we had those chinese companies being put on nowica's likeliest and they're almost like 14% or more higher than they were back then. so do these u.s.-china tensions really matter for chinese assets at this point? mark: it's a very good question. one of the situations we have to recognize is, when i came out to hong kong seven years ago, i'm just about to get my permanent residency, hopefully. i thought an international investor, i thought i knew -- quickly i was target. i thought there was all this stuff to do with the misallocation from capital, etc. so i had a view that is still pretty much the view of a lot of u.s. investors. and that was seven years ago. we have moved on, and china has

moved on. china benefits installing stuff -- selling stuff to america, but if it couldn't sell stuff to america, it would get by. where actually, what we recognized, if the u.s. couldn't import stuff from china, it's in trouble. so it's america that is having to adjust, and china is continuing on its path. remember, china has got 1.3 billion consumers. so if you're selling to those consumers, you are in a very comfortable place. those consumers are not burdened down with debt. they are not completely focused on an election. china is getting on with it. kind of gotten so caught up with coronavirus and the u.s. election that we are kind of mixing the really important -- don'tt don't master

matter at the stock level. of course it's important, but there's a directional trend here. ray dalio having a similar point of view. take a listen. , andme is on china side it's not on the united states side, for various developments. i think what's going to be a difficult situation in the new destinyration is that growinge side of china and doing better, probably. shery: and as we speak right now, raking at the moment, the china stock rally pushing the total market value above $10 trillion. for investors, in this environment right now, how do you get exposure to that and how do you position, when we are

talking about chinese assets like we have right now, we talk about the stock market and bond market. are there any specific sectors that would give you a leg up against other investors? and also thinking, look at the rebound in china. mark: the first thing is to look at, if you are investing internationally, what tends to happen is that people think they are reducing the risk if they hug a benchmark. just by the index, by the benchmark. trouble with the benchmark is well known, but people kind of ignore it. almost 60% of the global benchmark are going to be u.s. companies. the first step is to say when was the last someone country was 60% of the global benchmark? that was 1989 when it was japan. i'm not want to say the u.s. is going to collapse the way japan did in 1990. have oneld say maybe

third in u.s., one third in eurasia, and one darden asia. .o balance your portfolio we've got way too much in faang stocks, because remember, certainly google and facebook are getting nowhere near the chinese consumer, that's where the growth is, you don't want to tie yourself up to people that are blocked out. secondly, the real story here is the chinese consumer. so drill down, look at the actual consumer, look at what they are buying and selling, and look at who is addressing their needs. some of the big china technicals, millions of people that are selling products, not selling appetites. the whole tech start story which

is about these guys will get lots of advertising and lots of clicks, i don't think that is a sustainable long-term story, generally. and you don't have to play that one. you can buy the guys that make the picks and shovels. you make the money by selling the infrastructure. so the people that are selling the infrastructure are the people to focus on. and just to pick up on ray dalio's point, another interesting comparison is, in many, many ways, what we are seeing here is a shift of power, the same way that america took over from great britain or the u.k. back in the 1920's is what is happening now with china taking over from america. what we are seeing here is this kind of recognition and this sterling in the u.k., was the global reserve currency

and that whole period where america built its economic empire behind closed doors. so china is copying the u.s. playbook a hundred years later. in the see what did well u.s. in the 1920's and 1930's. it will be the airlines, it will be the internal airlines, the consumers, more of those things. anotherunning for bretton woods paradigm shift. arc tinker, thank you so much. let's go to karina mitchell for the first word headlines. >> congressional hearings in the supreme court nominee judge amy coney barrett will continue tuesday. monday session was primarily opening statements, but some lawmakers participating remotely. the senate judiciary committee chairman lindsey graham said it is their constitutional duty to confirm barrett as soon as possible. the law, president trump is back on the campaign trail after

testing negative for covid-19. he says he is in great shape. he is in orlando at the start of four straight days of rallies which take him to pennsylvania tuesday, iowa on wednesday, and then north carolina. joe biden has a 12 point lead, according to a new washington post abc poll, with many voters unhappy about the president's handling of the coronavirus both personally and for the nation. and a study of global mortality rate shows that the proportion of americans dying from covid-19 is the highest in the developed world. the american medical association met early on the u.s. -- saying the u.s. death rate was lower than other countries including the u.k., spain, and the netherlands. however, the number of for tallies soared. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. ahead, key chinese

trade data due out in just a couple of hours. the trajectory of the recovery, and coming up next, relations with china worsen further. were getting reports that signal beijing is suspending imports of australian coal. this is bloomberg. ♪

haidi: australian money stocks are falling on reports china may suspend coal imports from the country. the move will be another escalation of tensions between beijing and canberra. the government is trying to work out what is going on now. paul: that's right, the australian government is aware

of the reports but the prime minister city seeking clarification from china because there actually hasn't been an official announcement, according to people familiar with the matter, chinese power stations in steel mills have received instruction to stop using australian coal imports have been told not to offload australian coal. that has been enough or coal stocks here in australia, both off more than 5% by now. it's not the first time coal has been targeted, back in 20 when australia banned huawei from the 5g buildout, coal was targeted then in a similar fashion. but there's been anger in china made calls from australia for acquiring the origins of coronavirus. students have been discouraged from studying here and no coal appears to be the latest thing to open up. there are plenty of other

sources and domestic supplies there but metallurgical coal might be different story. this is a coal used in steelmaking. australia accounts for half the imports. prices been strong so it might be more for china for -- more of a challenge for china to replace those imports. shery: and china moving ahead with the prosecution of an australian writer who has been in detention for two years. what do we know about this? paul: it's hard to escape the conclusion that this also has some kind of political dimension, but there's no direct link. since been held in china january 2019 on suspicion of spying, but it's only now, nearly two years later the foreign ministry is concerned he's been formally charged on allegations of espionage. and that is the details that we have. the australian prime minister's calling for greater transparency but it does fit a recent pattern which is seen the australian

anchor for china's english-language broadcast detained in china and correspondence for abc and the australian financial review forced to flee china a month ago. anotheroks like at symptom of this ongoing political tension between the two countries. shery: paul allen with the latest there from sydney. up next, the imf annual meeting pushes for more stimulus to support the global economy in india steps up with its own $6 billion package. this is bloomberg. ♪

shery: that tops the agenda at the annual imf world bank meeting, easing the burden of the poorest nations and pursuing the riches to take on more. our global economics and policy editor kathleen hays is here. what is the message here and what is driving it? kathleen: the message is that

the world's poorest nations are in trouble. they were already in trouble, as their debt buildup as they had to take on more. now they are in a pandemic aravind the virus is raising health costs and of course pandemic is global and it has caused a global recession that is hurting their economies even further. the total debt burden of the world's poorest nations was up nearly 10% last year to a record $744 billion. that's worth the world bank put out in report today. there talking about extending the debt and having the g20 extend the debt which they agreed to extend until the end of 2020, but the imf and world bank in particular saying until the end of 2021 at least. television,omberg david was stressing that you have to help the poorest nations , shortfalls in the building that could turn into a sovereign

debt crisis. getd saying it's great to banks and private entities on there holding many of the debt set these countries have taken on, they have to step back and join the big banks in suspending debt payments, and of course he says the leaders of the poor nations have to speak out and say we need this and we need it now. the poorest nations are accumulated debts wife's -- class as fast as other low and middle income countries. there are 73 on the world bank's list and they want to make sure this doesn't cause more tension. haidi: some are seeing a different debt threat, calling spending fatigue. kathleen: that is what is

happening, as people are facing a resurgence in the virus in their countries, receiving that in europe and some parts of the united states. more fiscal spending, they're just wondering how the debts and deficits that are already big, christine lagarde was speaking on a panel at this virtual meeting and she was talking about the european central bank and a look at governments across europe. she said her biggest worry is that governments are going to stop pulling back on the fiscal help too early, would it is still needed. let's listen to what she said. >> my first concern is that policies are tailored in such a way to avoid the cliff effect. it's what we hope policymakers will understand and will determine is that those supports have to be continued for a period of time, even as the recovery takes hold and even as the pandemic gradually phases out.

an ecb board member said government should not be worried about rising debt levels now. haidi: and india's government is already that's not letting its budget hold that, just passed a sick spoon dollar package. what is in it? euros,n: 116 billion it's a very interesting package they are doing. their plan is to start with buns for struggle workers that have to be's bent on nonessential goods by the end of march, boosting consumer demand, very important. they also want to boost investment, their plan also is making states eligible for 50 year interest free loans for capital spending budgets. minister saying the new plan mustn't put the government on an unsustainable

path but definitely their debt and deficit are rising, too. it's a big step. haidi: kathleen hays there. she was speaking if lucidly to the finance secretary later this week, so you don't want to miss that. ♪

haidi: let's look at how we are faring so far with a look at the markets in hong kong. are fixedian stocks but trading at march 2019 highs. pressure, with lg and hyundai motors among the biggest rags. a record high head of the elections this weekend, and over in australia, banks providing a boost to the asx 200, but coal stocks are under pressure in the

face of beijing's coal import ban, but we do have banks gaining ground and also gold stocks under pressure in sydney as well. checking in on the currency corner, the aussie dollar , actually closing above -- below that level by .5% as were seeing pickup in dollar strength this morning. christie's economics says the aussie dollar losing steam on the pullback were seeing on chinese manufacturing activity. lawn just touching that 50 level, losing some the be okad of decision on wednesday. closed and the hong kong dollar holding steady after

boosting the currency peg. .2%,ore under pressure by extending the overnight drops we saw monday come of the biggest since march. head of the china open, the total market value for chinese stocks has dropped $10 trillion -- topped $20 trillion, adding three point $3 trillion in value since the march low that we saw for chinese equities. you had thea boon, currency rising 2.9% last quarter, the most in 12 years, for the best quarter ever. shery: and when it comes to trading in hong kong, we are now seeing hong kongx saying there's no morning session on tuesday, this is an alert on the bloomberg. we do have that tropical storm fromsifying, still away

hong kong but with the combined monsoon in the strong wind, now hong kong x coming out and saying there's no morning session. china's export machine is seeing mixed economic forecast, bloomberg economics specs eight point 4% export growth in september following 9.5% gains seeugust while economists modest expansion. one economist in the more bullish camp joins us from beijing. great to have you with us. you are forecasting exports growth to improve 12% year on year. why are you so optimistic about the numbers? beens, we have constructive on chinese export june, ahead may and

of the recent improvement in the data. thel we are looking for forecast, new export orders returning to expansion in the month of september, that is a positive sign. the latest export data from korea and vietnam has also been posting stronger export growth. and also even if you look at some of the port states have container shipments and throughput have continued to improve in the month of september, with 13%-14% year on year growth. theof this is pointing to near term exports being

extended. and even more dramatic grew -- covid demand. so we've seen some interesting trends that help to support our convictions of these exports. i guess the more important question is how long will these positive trade numbers be sustained? we continue to see this rising coronavirus cases even in countries where we saw it was reined in. south korea right now confirming more than 100 more coronavirus cases already. there we sort of forgetting fact that perhaps we will see more coronavirus cases and perhaps even lockdowns in the future? and when you factor that in, what does trade look like in china? our research has can -- reviewed more clearly that china this,en benefiting from

because the demand from the developed markets, u.s. and europe, has contributed significantly to the covid related demand. including the medical equipment and masks as well as i.t. related stuff. so that some of the strings, that although we've seen that moderating, there will be some positive growth of the single-digit number there. and then on the non-covid related demand, we clearly see improving and that is more visibly in july and august. that being said, although reverting back to social distancing measures and lockdowns in europe would pose some risk to that part of the demand and percent -- in

particular, and in the em but there's a continued risk about the pandemic spreading, but overall, putting these non-covid and covid demand together, we strength to be substantial in the coming months. news, some breaking johnson & johnson and the covid-19 vaccine study has been put on pause due to detection of patient illness, according to staff at an american news website. we're hearing that it's been paused due to an unexplained illness in a participant. we're hearing that a document sent to researchers running the 60,000 patient clinical trial saying that a pausing rule has been met and that the data and safety monitoring board will be

convened to investigate what this is. johnson & johnson of course is one of the leaders when it comes to find abal race covid-19 vaccine. interestingly they just signed a deal with the european union not four days ago to supply 400 million doses of a potential successful covid-19 vaccine. that was also where we initially heard about the event taking in a trial being held by astrazeneca. the johnson & johnson vaccine is technology same being used by astrazeneca in its vaccine development as well. johnson & johnson currently developing and testing one of these experimental vaccines in phase 3 of clinical trials, that's been suspended due to an adverse event in one patient. apologies for that interruption there. i have some positive news on

the chinese vaccines, in case you want to discuss. for out of the current 10 phase 3entering the child or develop a chinese companies. china reported that one of the companies has started registration for vaccination in beijing as well as wuhan. haidi: and of course we've seen china as one of the members in this global vaccine alliance. when it comes to changing the virusive of how this is a that originated in china, but the handling at least economically and in the health care crisis has been ordered in terms of what beijing has been able to do. do you think that level of confidence is returning, particularly looking at the

numbers that were pretty strong? domestically, clearly, in august, china heard a lot of compliments both from officials in beijing as well as drivers in the east or southern china. in complementing the government in really taking effective measures, putting the coronavirus outbreak under control. of may, june,nths and july, once beijing had the people actually could see that things could quickly be put out and contained , even if there may be another small regional or local outbreak. so that gave the public more outsidece in traveling

of their province and locality. that's what we saw, a strong recovery for services as well as tourism and as well as online shopping. posted 5% or 6% growth during the golden week period, compared with flat roads in the month of july and august. and we have tourism spending -- flat growth in july and august. tourism spending 10% lower than last year's level. the number tourists were hitting capacity, which is 75% in the major tourist attractions. haidi: always appreciate your time with us. our china economist joining us in beijing. will be taking a look at the outlook for b.n.p. paribas senior economist on bloomberg

markets: asia at 11:00 a.m.. it's 2:00 p.m. here in sydney. the war bank is calling on g20 nations to extend debt relief to developing countries until the end of next year. an exclusive interview with bloomberg, saying the situation in the poorest nations is likely to worsen as the pandemic continues and more should be done to event people from falling into poverty. bad, thatready gotten showing up in the numbers and likely to get worse as we go into 2021 private one notable part of this global recession is the inequality of it. great8, there was a financial panic. it hit people's stock markets and so on, but it didn't have as much effect on the developing world. this one is much deeper in the developing world and likely to deepen if there are further

shutdowns in the advanced economies. one of the things our numbers show is that the advanced hasomy, the recession actually been somewhat less severe than the estimates in june, but for the developing world, the recession has been worse than what was expected in june, excluding china. china is in a bit of a recovery phase, but the other developing countries are still in a worsening recession. stigmaused to be a attached to asking this question, but i'm not sure anymore. were there a cure for this virus at the moment, given what you're seeing play out in poor countries -- to judge.rd for us history will look back and try to assess, but for the poorest in the world, if covid is a

problem, a bigger problem for people is no jobs and increasingly the problem of food shortages, scarcity, and their incomes could go down. one of the things that hit the developing world so hard is remittances cut off from workers working outside the country. it might be across the border or in one of the advanced economies. they would be sending money back every month to their families, and that got cut off rather suddenly. another thing is just the activities of the world, for many countries it's down 10% from what it was a year ago. that means health problems for children, they are out of school , not getting their vaccinations, and in many cases, malnutrition is on a steep rise. talk about how you're looking to remedy it or at least offset some of the issues in the

developing world. you want to extend one program. what me through how far out you look to extend the initiative? >> we would like to sit extended another year. providing shallow relief. what it has done is said that the poorest countries should not in this crisis, given the severity of the crisis, starting last may 1, they were able to stop paying their debt service. that means principal and bilateralto official creditors. the riches countries plus china, and they could stop those payments, and the commercial creditors were supposed to join that initiative as well. that means banks and hedge funds, for example. unfortunately, they didn't, and even the bilateral official

creditors did not fully participate. so the savings for these countries, were talking about the poorest countries in the world, they are still paying their debts in some cases, so that should be broadened. and also extended into 2021. shery: the world bank president speaking to bloomberg's jonathan ferro. equities trading in hong kong facing disruption with a single warning likely to be placed for most of tuesday with the tropical storm passing southwest of the city. it may bring wind gusts of about 100 kilometers an hour. this is bloomberg. ♪

karina: this is daybreak asia. china stock market has topped $10 trillion for the first time since 2015. it's added more than three chilean dollars since the low in march with policies to encourage equity trading in the strengthening one. bloomberg data shows the global market capitalization is just shy of its all-time high. the u.s. market by comparison is worth more than $38 trillion. ridge water associates founder ray dalio said china has the

upper hand over the u.s. in a range of issues. speaking at a conference he said time is on beijing side and the simmering spat with washington and that the you -- next u.s. administration will have to deal with china's continuing rise we've back in july, he warned there is a danger that trade tensions could spiral into armed conflict. singapore central bank chief says as much as 20% of the city states economy faces deep scarring from the coronavirus pandemic. director told the virtual event that aviation and tourism industries are particular worries. sing for straight-line economy is already in recession facing its worst contraction on record this year. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. to thegoing back breaking, johnson & johnson's covid night teen vaccine study

has been paused due to a patient -- covid-19 vaccine has been paused due to a patient illness we would there saying a document was sent to outside researchers that a pausing rule has been met. let's get the details on what this means. this point,now at because johnson & johnson was going into their phase three trial of the covid-19 vaccine. a: that's right, they were in phase 3 as of last month. what they're saying, we just had a concern by the company that the vaccine candidate has been -- the study has been paused due to an unexplained illness in a participant. this is not the first time that a covid vaccine candidate trial has been paused. an astrazenecaad

trial paused due to some kind of neurological event in one of the volunteers in their phase three trial. so it's quite typical for a vaccine trial, but obviously these trials are being very closely watched by medical communities and by the markets, given what is at stake with them. show somejust goes to of the dangers of being the first to market, the risk of rushing a vaccine to market. not just from a safety standpoint but also the amount of public trust needed for the take-up to be high. emma: i think it shows that we do need to take a methodical and scientific approach to these --cines, that we do have to it does take sometimes years,

and typically years for most vaccines to come to market, and there is a reason for that, they do to -- they need to be widely tested, not just groups of there are people with different ethnicities, people at different medical issues and people in different ages, to see how they will affect them. this is a pretty normal event in show thatd it does there will be people along the way as we try to get to this show thehat will economy. there on theien johnson & johnson covid-19 vaccine being caused in that clinical trial because of an event they experienced by a patient. let's look at some of the other impacts of covid-19. disney is embarks on a major

structural shakeup as it continues its push to become global streaming giant and challenge netflix amid the virus outbreak. it's merging into one big group and focusing on its disney plus business. opportunities >> they see ahead. >>we want to take a consumer first approach. we want the consumer to guide us on how they want to see content. the greatest franchises, the brightest executives steering the direction of our content, and the greatest filmmakers. but the consumers need to tell us exactly how they want to enjoy our content. is it at home, in theaters, on our that form of disney plus? right now they are telling us that they really want to see more and more content disney plus and hulu. mulan've just released direct to disney plus and

production you're bringing out will also go that way, navigating away from theaters. what is your gut telling you in the longer term, is it just what happens in the pandemic, or more and more will you be going straight to disney plus? theirsumers will have choices. obviously the pandemic has affected the speed with which we are looking at things. this move we made today would be happening with or without the pandemic. we want consumers to have more choices and we want them to steer the ship in terms of options. obviously we have a lot of great relationships with legacy distributors, some of them are inside our own company. but at the same time we will take their cues toward the continuingking at it the rug we've been on. >> this is days, weeks, and months in the making. an activist had

basically calling you to focus more on content, saying cut your dividend, invest that entirely into new content at disney plus. rolet into one. how much -- rolled it into one. do you have an amount in your mind of two how much would be going into the making of content? >> as you suggested, this has been in the works for many months. he seen the trend in the receptivity and the acceptance of disney plus is a first choice for consumers. investors,ins to our we really like to hear from our investors in here but they are anyking, and appreciate thesis they want to forward. at the same time, we have to do what we believe is right for our business. we believe that direct to consumer is a huge opportunity for the walt disney company. to do this, do we have to make huge increases in the investment

in our content. we are ready, willing, and prepared to do that, but i will not comment on any decision-making that our board will do in terms of the dividend going forward. about netflix spending about $15 billion in content? are you looking at that order of magnitude? >> we will have something new virtually every week on our platforms across all of our franchises. between pixar, disney, marvel, lucas, we've got some really great content. and our guests love it, and there's so much story to be told , so many avenues to do it in. that is really where we are focusing, how do we go ahead and really take those content creation centers that we have inside the company, those franchises, and catalog them to make the content across our distribution channels, but especially our direct to

consumer channels. we havereaking news, confirmation from johnson & johnson that all dosing in their covid-19 vaccine candidate has been paused because of an unexplained illness in a study participant. china open is next. this is bloomberg. ♪ so you're a small business,

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but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. tom: welcome to "bloomberg markets: china open." i'm tom mackenzie. david: i'm david ingles. we are counting down to the opening of the session on the chinese mainland. that's get your top stories. mining stocks under pressure with beijing set to be suspending imports of coal. the government is seeking clarification from beiji