>> good morning and welcome to daybreak australia. we are counting down to asia's major market open. >> i'm shery ahn from new york. >> your top stories, wall street falls on the fear the recent gains. the imf warning the post virus recovery will be long and uneven. president jie zheng peng is said to lay out his vision for china's area to draw hong kong

closer to the mainland. wrapping off the iphone 12. it is bigger, pricier, and supports 5g. it could trigger a wave of growth. >> let's get a check of the markets. we are seeing u.s. futures under pressure at the open. this after u.s. stocks retreated from six-week highs during the regular session. prospects for us fiscal -- for a fiscal stimulus have remained stalled and we have mixed corporate views. the s&p 500 lost 0.06%, nine sectors were down. financials leading the declines. we had a positive start for bank earnings but they went south of her investors took a look at reserve relief and regulatory risk. 0.1aq composite, down percent, apple shares tumbling after the release of those latest iphones.

giving up some of the big gains we saw ahead of the event. oil is under pressure, but still above the $40 per barrel level. it held onto gains in the new york session. this after data from china showed robust crude imports but we did get an executive director shuttered restart of output may push crude prices down. let's see how the markets are setting up in asia. of thetaking some lackluster lead from the u.s. stocks overnight, asian seeing modest declines after the slip in u.s. equities overnight. these concerns over when we might get a fresh round of u.s. stimulus, weighing. the nikkei 225, marginally higher. startingures in seoul, lower after we snapped a winning streak after 14 days of gains ending the previous session in

negative territory. looking ahead to the start of trading in sydney, seeing declines when it comes to the futures, suggesting an early decline of 0.5% or so. we are looking at data that shows the stimulus measures from australian policymakers could drive local shares higher. and finally diverted from the picture we have seen in the u.s. when it comes to stimulus. continuing to watch the rally we have seen in kiwi stocks, rising in previous sessions despite a broader risk off sentiment across asia, at a record high, the best winning streak since 2017. looking a little more contemplative when it comes to trading in auckland. the u.s. session led down by financials, which had to do with city and jp morgan being more cautious about the economy, saying it is in a long grind. joining us is a portfolio

manager. great to have you with us. let's go into the u.s. trading session because we have the banks, was this surprising to you that these banks reduced reserves at a time when they also said they were worried a little about the future of the economy? >> that is an interesting question because i was surprised at the raise in the earnings for jp morgan, on the release of reserves. i think to the extent right now, they are not seeing it, it makes sense for them to release them because they may have taken them a little on the early side. the other side of the coin is that if the economy continues to have problems, i think the problems in the credit markets will come later and i think if there is something i would worry about going forward, it would be that those reserves, that we will have to build them again at some point because you will have more problems when people have been out of work for a long time. you had the stimulus through july and that gave people a lot

more room. now it is a fairly short time where you haven't had some sort of fiscal stimulus. since we are still arguing over it in the united states, that is a question about how the timing affects people in their credit. shery: we are seeing divergence in the markets, even with the rally we are seeing sectors gaining ground and other sectors that aren't. this chart on the bloomberg, showing how tech has been trading as a pandemic safe haven. we are seeing an interesting trend, when tech outperforms as health care underperformance -- underperforms. this chart is tech against the s&p 500 and the health care ratio in blue. when you look at the different sectors in the american market, where do you go when there is so much uncertainty still about tech giants and the diversion trade? sarah: the hard thing right now

is because you have an election in the u.s. where there is some question about how that will affect health care, although the health care names seem to have more value, the market now doesn't want to look at value stocks. the market seems to be much more interested in growth. the problem for looking at valuations is that where you are getting the growth is where people have been buying those tech stocks, so the valuations are higher. i think if you will continue to see lower interest rates, which we are, and concerned about the global economy, which i also think we are, where people are willing to put money to work even now is still going to be in those areas where you see growth. to the extent that that is not just technology but also companies that have to touch on esg and alternative energy, it is looking for places where people are thinking governments and corporations will put money and i think the tech sector continues to be a recipient of what is happening right now. you talked through the

themes of growth in tech, esg, some of the new energy type narratives. these were already coming along pre-pandemic. to what extent is it an agnostic trade regardless of what happens with the recovery in the health care crisis? done ishat you have accelerated trends that were already in place but you accelerate them in ways that i don't think anybody pre-pandemic could have envisioned, that all of a sudden, you were going to need much more bandwidth for people to be at home, and technology for people to work from their homes and connect with one another and have meetings over technology. all of those were trends that were happening, but they were enormously accelerated by the fact you have this pandemic and economies had to shut down and people started working from home in bigger numbers. extrapolate those trends and say, lots of corporations say for employees, you can continue

to work from home even after we get back to some sort of normal. there have been several corporations that said that. you have to start thinking about how that affects commercial real estate and other sectors going forward. i think those trends were in place but they were rapidly accelerated by the pandemic. me about your expectations about volatility going into the u.s. election. we are seeing bets on volatility pulling back fast. there seems to be a widening lead for joe biden. are the markets getting complacent when you look at where we are in volatility? for october, contracts were at the lowest part of the curve all this year. think, if we know anything from the last election, we know there has been volatility even when the polls were looking like they were very strongly in one direction. to some extent the market has become complacent betting on the

election but i think what investors are looking at now is, no matter who wins the election, we are going to get some sort of fiscal stimulus. fiscal stimulus will be good for the economy and good for the stock market. i don't think they are pricing in any major changes in tax policy or anything else that i think the markets are pricing in -- but i think the markets are pricing in that some stimulus will come out of this no matter what and the fact that interest rates globally remain at levels that have never been seen before, negative across europe and low levels across the united states, it is difficult to find other alternatives to put your money to work. equity markets are benefiting from that. hunt joining us, we appreciate your time. let's get you to new york. karina mitchell has the first word headlines. says the world faces an uneven post-virus recovery although it has a less

dire view of the recession. they see global gdp for shrinking 4.4% this year, down from just over 5% in june. that would be the deepest contraction since the great depression. staying on the imf, it is slashing its outlook for india even further, saying it faces the biggest contraction among major emerging markets. gdp is expected to shrink by more than 10% for march, far worse than the 4.5 percent decline the imf saw in june. india imposed the world's biggest lockdown in march, causing the economy to shrink by a whopping 24% in the june quarter. the u.k. and eu are dialing up the rhetoric as brexit talks failed to make progress ahead of boris johnson's self-imposed deadline. negotiationssays haven't moved forward enough to enter the so-called tunnel phase , while johnson's spokesman says

the u.k. is ready and willing to lead the single market without a deal. sterling fell on the news. global news 24 hours per day, on-air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. shery: still ahead, the latest on the global race for a covid treatment. johnson & johnson sticks to its timeline even as clinical vaccine trials are put on hold. we hear from the cfo, later. first, chinese president xi jinping is expected to lay out his vision for the greater bay area leader. what to expect from his speech and what it could mean from hong kong. this is bloomberg. ♪

haidi: xi jinping will deliver a major policy speech across the border from hong kong.

he will spell out his vision for an integrated global tech silicon valley. stephen engle joins us from hong kong. we know the policy priority shenzhen plays. at are we expecting to hear today? inphen: like what happened , widely seen in china as a critical moment in chinese history, unleashing the power of the province to counter at that time the four asian tigers, there are four different challenges with the u.s. led i guess crackdown or pressure on the so-called bifurcation of the next generation of tech innovation. china wants more self-reliance. that is what xi jinping is hinting at, what is come for his -- in in change in

shenzhen. here is a quote from him, according to a news agency. we are seeing changes unseen in a century and we need to guide ourselves on a path to higher quality self-reliance. this speech in shenzhen is rightly hailed as a major policy address ahead of the central committee in beijing meeting at the end of next week to lay out the next five-year plan. the greater bay initiative is expected to be paramount or play a prominent role in the priorities of investment and policy over the next five years. it is to get the greater bay to drive economic growth. and also bring hong kong more into lockstep with the mainland. you are talking about stitching together nine major southern cities with hong kong and macau, they are calling this a

socialist pilot zone with chinese characteristics. maybe they need a better tagline than that. haidi: what about hong kong? how does the city fit into the equation? stephen: obviously they have separate trade and investment and rules than the mainland. they have an open capital account, but they also have a history of the last couple years, significant unrest and economic hardship. as we heard from the financial secretary in my latest hong kong on edge documentary, he is encouraging hong kong people to go across the border, get jobs in the innovative tech corridors. we know shenzhen is the headquarters for huawei and tencent. this is not new, it is expanding and wants to be on the forefront to rival silicon valley and in tokyo, the tokyo bay

headquarters for the next future defining technologies in 5g and beyond. carrie lam, the chief executive here, postponed her own policy address which is due to be given today, to attend the speech in shenzhen, to meet with xi. she has already had to quiet criticism that she is waiting to take directions from beijing for hong kong's own policies. obviously, the leaders in beijing and hong kong are positioning this is the way forward, the feasible way forward for hong kong. shery: stephen engle there, joining us from hong kong. a panel coming up in a couple hours from a global conference. the australian trade minister and -- speaks amid tensions between beijing and canberra. bloomberg subscribers can watch on bloomberg go. this is bloomberg.

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shery: the race to develop a covid-19 treatment has hit back-to-back snags. eli lilly passed its antibody trials over potential -- paused its antibody trials over potential concerns hours after johnson & johnson halted its tests on a vaccine. our health care reporter has the latest. side effects are emerging in the vaccine race. will they delay progress? everyone expected complications and side effects to emerge because that is what happens naturally in the drug development process. but it happened so quickly that development of these approaches, we haven't heard about the complications until now. so the fact that they are all coming out is actually a good sign because that tells us they are taking it seriously, they are not going to sweep something

under the rug that is one or two people, they found something a little untoward. there are now multiple vaccines and candidate therapeutics and development, so hopefully we can winnow out the ones that aren't effective and ends up -- and up with ones that are really beneficial. isdi: in the meantime, china floating the idea of vaccinating chinese students going abroad before these drugs even receive regulatory approval. given that we are seeing anticipated adverse events, is this a good idea? michelle: you can see why people, students from china would want to take some kind of action. in china, there is really and embracing of the idea of social distancing and wearing masks and reducing the amount of virus in the population by everybody being on the same page, which we don't see in the united states. so the idea of giving students

vaccines to give them some kind of a protection when they go to a place that doesn't universally protect themselves is, it makes sense. but you see the risk. we don't know for sure whether these vaccines will be effective. you would potentially put the students at risk for complications from a vaccine, for a disease they might not even get, even though there is a lot of virus in the u.s. most college students aren't getting it. the majority of those who do, are doing fine. you will be putting people at risk for something they might not ever benefit from. that is something that is raising a lot of questions. a difficult risk-benefit scenario. michelle cortez with the latest on the vaccine front. on johnson & johnson falling after they paused their vaccine trials, dealing with a sudden illness, the cfo told

bloomberg they remain confident in the vaccine which they aim to make available late this year or early next year. >> with respect to details around the temporary pause on our vaccine candidate trial, there is little in terms of details known at this point. we were informed 36 hours ago that -- and that information was elicited by the independent drug safety monitoring board. that data is blinded to us. it is up to that independent group to determine what will be un-blinded. we have had significant confidence going into the vaccine trial itself. we tested 100,000 people on this platform for ebola, zika, and hiv without any serious health consequences and very well tolerated. we are confident we just have to let the process play out and hopefully, the public is reassured that we are following

the highest scientific, medical, and ethical standards that we do for all our drugs. that is true for johnson & johnson and i believe it is true for our pharmaceutical counterparts. >> we saw that with astrazeneca, issues. to assess some but it hasn't yet been approved by the fda to continue but it can continue in other countries. help us understand the procedure globally as you test the vaccine in many countries, as to what stops and moves forward, how quickly that can happen. >> i won't speak specifically on astrazeneca. from our perspective, the details are being finalized about the patient. it is a 60,000 person study, the largest of any vaccine trial being currently conducted. it is probably not uncommon to illnesses thated occur. that is what has happened. so we will let the board do their study, do their diligence

and we will proceed accordingly. we have been in contact with the fda and other health regulatory authorities around the world, so they are well advised as to what we know at this point. we will certainly work in lockstep with their direction. timeline, about the your ceo has said in the past, and i'm quoting, that he would expect vaccine to be available late this year or early next year. is that timeline still the one you are working to or do you think the risk is, it gets pushed out further? >> i think the best way to answer that is to say we are not changing any investment plans to expand manufacturing footprints. we are planning for success without same timeline in mind. >> that is a fair point. on the same lines, i wonder if you could give insight into johnson & johnson's conversations with regulators.

a lot of the conversation and confusion in the market comes from the fact that we don't know if we can trust the vaccine, how do you know if it is safe to take, etc. what is your conversation? >> our conversation has been to keep them advised of our scientific protocols. we are being transparent not only with regulatory authorities but also the public at large. we have a detailed website which outlines our design protocol, our study results, our enrollment as that gets posted. we are being very transparent. i would hope the public would look at today's temporary pause and be reassured that we had johnson & johnson and across the industry are following every proper safety protocol, guideline to its utmost degree. shery: that was johnson & johnson's cfo. the latest business flash headlines, apple launched its latest iphone. it was expected to spur a new cycle of growth. a virtual -- at a virtual event,

they showed the iphone 12 and a variety of colors. it starts at $799 with a smaller vision -- version $100 less. asmax versions go as high $1100. they all support 5g technology. tencent is said to be planning to double its stake in universal music before the option expires in january. last year it let a consortium that bought 10% of the company from vivendi in a deal that valued it at over $35 billion. tencent and the partners have the right to raise their holdings to point percent before january 15. a company is making progress in winning the approval for an ipo in shanghai and hong kong come although it still has noted to -- definitive timeline. they have picked two companies as frontrunners.

jp morgan and morgan stanley are sponsors. the imf sees a tough, uneven recovery for the world economy. we hear from a chief economist. this is bloomberg. ♪

haidi: you are watching daybreak australia. karina: xi jinping will lay out for the future later, specifically for the greater bay area north of hong kong, telling the audience at home and abroad that there is no turning back. he will explain how the region will drive wider economic growth and bring hong kong closer to beenainland, and he has urging a stronger focus on quality and self-reliance amid rising global uncertainty. rates asnesia held expected as it focuses on debt purchases to support the

weakening economy. they kept a seven-day reverse repo rate at 4%, as predicted. they opted for unconventional measures to revive the indonesian economy, which is set for its first annual contraction since the asian financial crisis of the late 1990's. malaysian opposition -- a malaysian opposition leader seems to have missed out in his latest did for power, failing to convince the king he has the support he claims. he says he offered proof of a majority among lawmakers and repeated his calls for the prime minister to step down. the palace says he failed to supply names and advises him to abide by the constitution. police in thailand arrested dozens of protesters trying to besiege the prime minister's office and put pressure on the king. demonstrators say they will press on and are prepared to stay until the weekend. they want new elections, a review of the constitution, and curbs on the traditional power of the monarchy. the king is protected from

criticism by tough laws. one of the world's most famous soccer players has tested positive for court -- coronavirus. is one of theldo best players of all-time. he has been withdrawn from the porsche goal -- the portugal nationals and is recovering in isolation. investors divest -- digested the news. other players tested negative. global news 24 hours per day, on-air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. for morning calls as we count down to the asian trading day with sophie in hong kong. we are looking forward to xi jinping's speech and we saw a run-up in stocks in china. lots of expectations there. what is the theme resonating with strategists? world -- ise is the

the word. shenzhen is the hub for huawei and tencent and will be central to the next five-year plan in which china is looking to close the tech cap with the u.s. and move to self-reliance when it comes to innovation. edward lim sees chinese tech stocks continuing to outperform u.s. peers, saying the structural trend remains intact for lower valuations, higher growth prospects and less regulatory risk than in the u.s. . the msci china index climbed more than 40% this year compared to the 32% rise in the nasdaq. you mentioned regulatory risks in europe and the u.s.. what is ubs recommending? diversifyey say beyond u.s. tech sector but don't stay on the sidelines given long-term opportunities to build up positions in 5g and green tech.

chinese new economy stocks as online players by more market share and consolidation is in play. ubs says don't just focus on china's e-commerce sector as on -- other online industries are happening. shery: investors are watching the bond market in china. what are you watching? canie: we will see if china secure a lower cost of funding as beijing attempts to avoid uncertainty after the u.s. elections and market volatility that is expected in the current environment. investors have been buying into bonds but shunning em stocks and -- theme, dws says em government debt is positive, but they cut the rating on em corporate bonds to neutral sensitivity -- due to sensitivity about the pandemic and the sustainability of the recovery, flagged by the imf in its assessment of em asian

economies aside from china. haidi: the battle over a new stimulus package in the u.s. seems to be no closer to a resolution. nancy pelosi, demanding the white house revamp its latest proposal. mitch mcconnell is pushing a smaller scale strategy to which rejected.ent kathleen, three weeks until the election, republicans can't dig -- can't even agree with themselves. this is how, maybe deals are sometimes struck. it is always darkest before the dawn. it is something to see mitch mcconnell, the senate majority leader, and nancy pelosi, the speaker of the house, going at it that what happened today was, mitch mcconnell talked about a proposal, a limited proposal, let's look at the paycheck protection program, get money to small businesses so they don't have to lay people off. within maybe an hour or so, president trump put out a short

and powerful tweet. let's look. stimulus, go big or go home. he didn't say he was saying that to mitch mcconnell but nancy pelosi said to reporters later, looks like democrats have more leverage than ever on a call. she said mitch mcconnell's deal is a nonstarter, bad for all the priorities democrats have according to people on the call. she said trump's proposal falls short and they need to make changes. mitch mcconnell says democrats have to stop locking a bipartisan deal that will do something. we have to replenish the ppp, we can get this done. he argues some deal is better than none, saying democrats want all kinds of things that aren't related to the virus. we don't need that now. pelosi's rejection of the white house proposal comes after donald trump had talked with his team over the weekend, moved it

to one point $8 trillion and he is trying to get the republican party to move even closer to the democrats' $2.2 billion -- 2.2 total. the american people can't wait until february. she is urging pelosi and her team, make a deal, put the ball and mcconnell's court. that is where we are. who knows where we go next. there are only three weeks until the election. shery: these are national monetary fund -- the national monetary fund out with a less negative view but one that is not great. >> it is positive in a sense. the good news is, they shifted their numbers. it is less than -- less severe, but worse than the great depression. the forecast for global growth this year is now standing at 4.4% contraction. it was going to be even bigger at nine is 5.2 in june, not much 2021. in

without china's positive growth outlook, global gdp overall would still be looking negative this year. china's gdp they say will rise 1.9%, which is going to turn into a very strong number of 8.2% in 2021. the chief economist for the imf said today, china is already above its 2019 levels. that is what happens when you are expanding. for hard-hit areas like europe and latin america that won't happen until 2023. emerging markets are one of the hardest hit in this whole group of global nations. india's gdp will shrink more than 10% this year, more than double the 4.5% drop seen in june. the inf having a negative view of emerging markets, facing grim prospects for the coming years. our economics and policy

editor there. we will be speaking to carlos later so stick around for that exclusive conversation. imf, hear more from the because the chief economist says is past -- a chief economist concerned about global data and told bloomberg, low rates and a possible growth rebound could provide hope for nations to ensure their debt load is sustainable. >> it is uneven across countries. doinge advanced economies better than emerging and developing economies, excluding china. within countries that are uneven, you see low skill workers, women doing worse in labor markets. we are seeing rising inequality and the poor are getting poorer. and we are seeing manufacturing having strength and recovering

on a month-to-month basis but on the other hand service sectors are stalling or reversing in some parts of the world because we are living with this virus. >> you talk about the effects of this virus being longer. does this mean the damage is going to be ultimately greater, despite the more shallow trajectory? is the worst, this crisis since the great depression, and we have very prolonged recovery. for most countries with the exception of china, they don't recover to 2019 levels even by the end of 2021, and then there are regions like latin america where that takes until 2023. this is a prominent lost output over the medium term. we have about $28 trillion lost pickup the -- because of the crisis. this will be slow. this is why we described this as long, uneven and highly uncertain. >> what can stop it?

i know the imf is saying don't worry about debt, governments should spend to support your economies. that seems to be coming to some kind of halt. u.s.,ulus in the furloughs and the u.k., can't get the recovery fund passed in europe. how do you look at it? gita: i think the number one thing countries need to do, and work more closely together, is on ending the health crisis. the problem, we are getting the prospect of vaccines and better treatment and testing but there is not enough production on the scale that is required to reach everybody. if that doesn't happen, we are living with this crisis and that will prolong the recovery. we are asking countries, especially those -- to not prematurely withdraw support, provide income support. you can be targeted because countries are in different stages of lockdown. some places are more open than others. you can be more targeted in

terms of how you operate, but it is important not to withdraw support at this time. for companies that don't have the finances, they will need international assistance in terms of financing, aid, debt relief. that is needed to ensure that we are not going to knock these theomies off the path for foreseeable future. >> the crisis is going to go on for a long time. you have made that clear. that levels will be significant as a result of this. how big a drag will be enormous debt many countries will be be in terms of economic growth into the future? gita: we have debt projected to be a record high of 100% of global gdp but this is at a time when private savings are high and private investment is very weak. that is part of the reason why interest rates are very low at this point, expected to stay that way for the foreseeable future. the extent interest rates stay

low, there are many countries for whom the debt level will stabilize and start coming down. but that said, this means your window of opportunity to build a medium-term fiscal framework to make sure your debt will be sustainable over the next several years. in some cases that will require cutting back certain expenditures, in many cases are wasteful, but also through greater revenue generation, like making sure corporations pay their fair share of taxes. all of this, greater transparency, all of this be important. we have a breeding space because of the world we are in with low interest rates. that was the imf chief economist. plenty more to come on daybreak australia. this is bloomberg. ♪

haidi: u.s. earnings are off to a mixed start. jp morgan and citigroup meeting on revenue profits but they ended up lower. blackrock adjusting thanks to a surgeon retail investment throughout the pandemic, covering the stocks is our financial analyst. give us the top-level thoughts. are we getting too optimistic, given that i suspect for a lot

of these stories, in particular j p.m., it is more of a balance sheet resilience story as opposed to strong growth? enoughink that is a fair point. i don't think anyone is running out to buy as many banks as they can in the world that doesn't have that much longer growth and rates are really low around the world. that does lead to less growth than you would like. but make no mistake, these banks jp morgan specifically, there is a lot of growth in each one of their businesses. it is not just trading and investment banking were good, so was asset and wealth management, security services is pretty good and the others are re-basing showcovid and starting to bottoming out. like the economy is opening up, their revenues should follow suit. you encouraged by the level of loan losses we have seen being moderate?

is that something you would be flagging as a risk if another round of stimulus isn't agreed to soon? low level of losses right now could be just a matter of time. there is a lot of stimulus and the stimulus is meant to help individuals and small businesses make it through to the other side of covid and hopefully, it is temporary and they are able to get off forbearance and start paying, but plenty of them are coming off forbearance and some are paying on some are not. you will start seeing losses flow their way through the p&l but the banks warned today it might not be until the second half of next year where you see the losses. one last thing, because of the new accounting treatment, the banks have reserved for what they believe the losses will be anyway, so they think the reserves are there waiting for if and when the losses come

through. that is why you saw much better earnings and that is why the banks who led you to believe if the economy doesn't get worse from here, we don't have to add material to -- materially to reserves. that is a positive comment about the current state of earnings. thei: how positive is outlook for fee revenues, whether it is ipo's or e-minis -- mna's? glenn: that covers a broad range. things are going well generally, but it is hard to believe they could be as good as they were. covid shut down the world, and the resulting boom in terms of debt issuance, equity issuance, mna is back up. it is hard to have a year on year positive growth over what we just saw over the last six months, but the level is so high, as you saw, we have strong earnings even if we are coming off the highs.

long story short, mna is on its way to getting better, equity capital markets and debt capital markets are still very strong, you have not seen credit card growand some banking fees just yet. they are shrinking last. shery: does today's hit on citi stock make sense given regulatory risk? the cfo talked about those consent orders and federal occ orders. the solution wasn't quick or easy. glenn: the solution is not quick or easy, and it is not exactly up to them. the fed gave them a timeline to come up with an all-encompassing plan presented to them, and another 90 days to put it in motion. i appreciate that analysts want the answer right now. how much will it cost and when will it be done? they don't know and the regulators don't want them to throw a number at it today.

they want them to take the three or four months to fully vet it and finally be done with this. this is something the regulators wanted done in past years. they are in the penalty box. as much as i want the number and timeframe, i understand it is not realistic to get it right now. shery: great to have your insights. , apple unveils the new iphone range with five gtech. will this kickstart a new era of growth? we discuss. this is bloomberg. ♪

shery: apple has unveiled the new iphone at a virtual event, promising they will be thinner, lighter and faster with long-awaited 5g technology. they hope the launch will spur a new era of sales growth. >> each generation of cellular technology on iphone has enabled breakthrough innovations and entirely new opportunities for developers and users. 5g is the most exciting step yet. for so many people, this becomes real with 5g coming to iphone. shery: our reporter has more on the new iphones. analystsnvestors and any bullish when it comes to sales especially in china, yet

the stock itself today took a hit. ,as it more about the rumors the trend or is it more about disappointment with the product? >> i think it is probably a mix theoth, more so on the buy rumor, sell the news. if you look at apple product announcements historically, you see a run-up on the stock prices before the announcement and a 1%-6% depending on the event after the news comes out. i think investors knew what was coming today. muchnk that has been very priced in. i think it has to do with selling the news after buying the rumors. there were other things that happen in the stock market today. who knows if that had an impact on apple? we saw a few covid vaccine trials getting paused over the last day or so ring the open trading hours, and perhaps investors felt if the vaccine comes later rather than sooner,

fewer people might be able to wait in line for these things or afford the new device. so i think it is priced in together. lower pricese something that certain parts of the market would be excited about? mark: i think the prices aren't lower, but particularly, they are quite a bit higher. i think if you look at a year-over-year comparison to the baseline, iphone 11 to iphone 12, it is actually $130 u.s. price increase and they are masking that with carrier special deals and a $30 subsidy they have coming from verizon, at&t. so i think you are seeing an increase here. on the new home speaker, the $99 price is quite attractive. haidi: what were the biggest changes in terms of technology? we are awaiting this 5g phones to be released, as well. mark: i think 5g was the big

thing. it was a little surprising, how went. on 5g they typically, they didn't necessarily put a lot of attention and effort into explaining the benefits of such technology. i think they showed a few examples of how consumers might use 5g, whether that is through gaming or other means. but i think overall, the big focus was more expansive array of screen size options, colors, some design tweaks that i think consumers will like if they are used to the older, more squared off designs from many years ago with iphone 4 and five and a few generations before that. i think the camera improvements, particularly on the promax phone, are significant. they are well ahead of the game there. but don't forget we are talking about perhaps the most expensive mass consumer smartphone on the market. shery: that was mark with the

latest on the new iphone. thank you. we have breaking news, we are hearing amc entertainment is considering a range of options that include a potential bankruptcy in order to ease its debt. we have seen the pandemic stopping moviegoers from going to theaters, and no bloomberg has learned from people familiar with the matter that lenders to amc theaters held preliminary talks among themselves about providing the company with financing if it decides to file for chapter 11 court protection. the fresh cash would keep amc in the recoverye happens. creditors are mapping out a strategy that could include the ip lending and other options include renegotiating leases. the nextming up in hour of "daybreak asia," we talk about the growth sectors in china that are yet to receive as

much attention as others. we will get more reaction when it comes to apple's new iphones. and of course, we are counting down to the market open in sydney. some weakness is expected. this is bloomberg. ♪

good morning. i am haidi stroud-watts. in sydney. : i am shery ahn in new york. we sit gains, and the imf is warning the coronavirus recovery will be long and an even. present xi jinping is set to