♪ haidi: good morning and welcome to daybreak australia. we are counting down to asia's major market open. shery: good evening from bloomberg's world headquarters in new york. lossesu.s. markets pay amid hopes of a stimulus deal. president trump is pushing a bigger relief package. australia and china tensions may as collate what the cotton industry fearing it is next for

beijing's anger appeared cotton australia says chinese mills are being told to halt imports. the last day of campaigning for saturday's election indicating the prime minister will be a comfortable winner. futurese are seeing you coming online at a 10th of 1% higher. does after we saw u.s. stocks session.n the regular had surging virus cases in new york. not to mention the stimulus talks in the u.s. remains stalled. the s&p 500 fell 2/10 of 1%. financials and real estate higher. the afternoon session solve sawical shares -- session cyclical gains. jobless claims unexpectedly rising last week. we also had the dollar gaining ground the most in three weeks.

take a look at what oil is doing. it remains under pressure. it is around the $40 a barrel level. we saw the continued pressure following the jobless claims data. we saw a rebound in prices and a than york session after we had data that fuel inventories were lower and that eased some of the demand concerns. let's see how asia is shaping up. happy friday, shery. it is looking like a mixed picture at the moment. the nikkei futures are moderately keeping their head above water. still looking at about 9/10 of 1%. we had the dueling town halls from the presidential candidates to look forward to later on. we are seeing futures off by about a quarter of 1%. -- we had expectations

and it comes to third-quarter results. i shipments meeting expectations. -- iron ore shipments meeting expectations. we saw some weakness when it comes to the aussie dollar. losses of about 1%. new zealand modestly lower going into this last day of election campaigning before the weekend. getting back to commodities and australia's cotton industry --rs the latest the industry says it is working with authorities to understand apparent changes to export conditions. asia's agricultural editor is here with us. what would be the impact in terms of how much of the market we are talking about if there was such a ban by china?

biggest is by far our importer of australian cotton. that said, there has not been much australian cotton produced in the past four years because of the drought. exports are tipped to be even if they were covered next year, they are still tipped to be the second smallest crop in a decade and exports are expected to fall to a three decade low next year. there is not too much of our cotton going offshore matter who is buying it. shery: give us a little more detail on who is buying it. what are the alternative markets out there? textilef the major makers in southeast asia. .ndonesia, vietnam we have seen a big slump in demand for cotton in general as chinese mills have shut down because of coronavirus

outbreaks. that is tipped to recover next year. that is the same in a lot of markets in southeast asia. it depends on how the global economy slums next year, how much demand there is for textiles in terms of where we can send our cotton. are we seeing the same kind of targeted backlash from beijing? they have targeted major commodities they need. i'm wondering, what else do you see as being potentially vulnerable? >> it has been a guessing game as to what is going to be had next. there are concerns about the dairy industry. wine has not had any tariffs applied yet, but there is an investigation that is expected to conclude next year. the u.s.-china

trade deal, which is redirecting a lot of china's appetite toward the u.s. as they meet their targets. they have been buying a lot of u.s. cotton and other grains and things. that is also kind of in the mix in terms of potentially why they can do without a lot of australian imports. asian bloomberg's agricultural editor. let's get the first word headlines. president trump is saying is -- he is blaming democrats for delaying an agreement that says he would go further than the $1.8 trillion deal that majority leader mitch mcconnell rejected. mcconnell says there is little immediate prospect of an agreement. new zealand enters the final day of campaigning with polls

indicating a comfortable win for the prime minister. the labour party has enjoyed a lead in all recent surveys. she is seen as the major draw for voters although critics say she has failed to deliver on some promises made in the last election. president trump is warning the u.s. will strike much harder if the european union goes ahead with tariffs on american products. permission from the wto to put duties on u.s. goods. the e.u. is weighing tariffs on a range of products including aircraft, coal and food but is likely to delay any move until after next month election. toldean union leaders boris johnson he must make concessions before the prime minister is due to decide whether to walk away. the u.k. chief negotiator says he is disappointed after a

warning that came from a summit with the e.u. leaders. the judge hearing we chat's restrictions in the u.s. says she is unlikely to rule in favor of the white house. she is not inclined to grant the government's request. she asked the justice department's -- she adds that the latest evidence has not changed her concerns. those were your first word headlines. ahead, donald trump and joe biden prepare for dueling town halls on separate tv networks after canceling a face-to-face debate. expect be asking what to with less than three weeks until the election. stocks trimming losses. we are joined by the northern

trust chief investment strategist. this is bloomberg. ♪

♪ traders await news on u.s. negotiations amid a resurgence and a resurgence in coronavirus cases around the globe. let's bring in the northern trust chief investment strategist, john mcdonald. let's talk about what is happening in the global market. global equities have barely moved. sideways trading scenes not surprising given the negative news we have. how fragile is this situation when everybody seems to buy and sell at the same time and how much of the risks are priced in? jim: i think we need to take into account the tremendous rally we have had over the past five months. some condyle -- some consolidation is warranted.

our two biggest risks have been concerned about the fiscal shortfall and potential disruption from the u.s. election. those are increasingly being discounted by investors. i did not see them as being big market movers. the new risk emerging is the increasing cases of covid that are sweeping across europe and increasing across the u.s. the market is going to start to try to analyze that and discount if it is going to be a new disruption or if it will be a lower peak than the prior peaks. every month this goes on, we are closer to the vaccines. shery: is that why you are for now muttering under weighing u.s. equities? are headed for and other earnings season. why not be a little more optimistic about potentially beating estimates? jim: it is tied to the fact that the market has gone really far really fast. there is not much of a margin of

safety for any of the risk issues we have talked about. we do not know if the fiscal package is going to come through. if president trump does not win reelection, what happens during a lame-duck session? does he veto it and they we have to override the veto? there is concern about increasing coronavirus cases. and just the overall valuation level with the stock market trading at over 20 times 2020 when earnings. there is not a lot of cushion for things going wrong. we just do not think we would be aggressive putting fresh money to work. haidi: so what does your portfolio look like in terms of a balance between bonds and equities? jim: it is moderately underweight. included in that is a no overweight to high-yield bonds. some people put high-yield bonds into the fixed income camp. some put it in the risk asset bucket, which we do. in that camp, we are 4% underweight to the traditional

equities. we are overweight high-yield bonds. that is why it is a moderate underweight risk. we do not think you want to be out of the market and underexposed to what still looks like a pretty good cyclical recovery. central bankers are going to do nothing for several years to disrupt the party. in that environment, it is balanced toward being careful for the short-term, but we do not want to be too negative in what is otherwise a stimulative environment. haidi: you say that bricks and mortar assets are still wanting a place in a balanced portfolio. talk about we work although we know there has been trouble with that business. it does not feel like this rupture in commercial retail -- jim: those are valid points. when we have done our longer-term forecast on the

returns in real estate, we have cut their return potential from office and retail. there are sectors that will benefit including the logistics distribution industrial side. real assets are what give you some protection. under the primary risk over the next five years, which is as inflation starts to pick out. up,nflation starts to pick interest rates are at risk. that puts a bet -- that puts regular valuation at risk. it is not just real assets like real estate. naturalings like resources at inflation linked bonds. instead of buying gold, our research indicates a combination of natural resources and inflation tech insecurities gives you comparable upside with much less risk. shery: where do you stand on markets?

the search for yield has many optimistic about what to expect especially in asia where they seem to be getting over the coronavirus pandemic sooner. jim: we are still a little cautious on the emerging market side. there is concern about we emergence of covid across all of the developing economies. financial system stress in the wake of the slow economy, it will be felt first in the emerging markets. verymf has warned of some significant liability needs in emerging markets over the next five years. we are not willing to take that risk. our view is that high-yield bonds give you a comparable return with a lot less risk. that is where we would rather be. trust chiefern investment strategist jim mcdonald s.

howard marks says it is sometimes better to let businesses fail. the markets listing may have caused some people to believe it will always do so. thoughtsed on those with erik schatzker. treasury ared the taking extraordinary actions these days to avoid a worse condition then we have to have. that it is notk unsuccessfulo keep companies in business. i think -- i am not an expert on the airlines, but i think there is a case to be made they have to be smaller because fewer people will fly over the next five years. business to for a

contract is to go through a real organization of bankruptcy and discharge onerous contracts and reduce their overheads. airlines would be facing financial difficulties. the specific bailout of airlines and the general health obviously,omy and the fed and treasury have targeted the airlines for theiric -- to preclude bankruptcy. the obama administration permitted chrysler and general motors to go bankrupt. that was helpful to them. feds that to say that the in your view -- and i do want to make sure we understand how you see things -- that the fed is forestalling the inevitable? that because of the pandemic and

the impact the coronavirus and the fear it has produced is going to have on global travel that airlines might go bankrupt or they're going to have to resize in the future regardless of how much money the fed throws at them? the same would apply to cruise lines? is -- veryresize well might be in the cards. i am no expert on the airlines. usually a good tactical way to do that because you can discharge onerous contracts. convert debt into equity. >> since you bring up bankruptcy, one manifestation of the lack of return you have noted in credit markets is what is going on right now in distressed credit. the kindever witnessed of open warfare that is unfolding today among creditors?

one investor calls it fratricide. know, you might call it fratricide, somebody else might [indiscernible] exercising their fiduciary duty to maximize the outcome of their clients. we are not brothers in the sense that we should take it easy on each other and not nationalize the interest of our clients. the problem is that over the years, in pursuit of yield in a low return environment and we have not had a low return environment since the global financial crisis, which occurred 12 years ago, ever since then, we have been in a low return environment and people have been scrambling to get yield. they have been competing to buy securities, which gives the

issuer the upper hand, which permits the issuer to strip out the covenants and the protections as to what they can do to the lender. gone,he protections are then it becomes easier for aggressive people to pursue recoveries for themselves and their clients. shery: howard marks. do not miss a big interview coming up. we are speaking to the world bank chief economist on daybreak asia. still to come, new zealanders head to the polls this saturday. it looks like we are seeing a repeat of jacindamania. this is bloomberg. ♪

♪

haidi: when new zealand heads to the ballot box on saturday with paul suggesting the almost certain reelection of the prime minister, paul allen has the latest on the campaign. the prime minister is expected to retain power. what would a second term potentially look like in terms of differences? of newhere is not a lot policy being offered ahead of this election. the labour party proposing an increase to the top tax rate. the key difference would be the coalition partner is gone. the deputy prime minister and new zealand first minster is likely to be wiped out. it was his polling that got jacinda into power. some polls suggest she might govern alone, which would be the first time that has happened in the era of proportional representation. even if she does need a

coalition partner, the greens are likely to get back into parliament and they are guaranteed to support her. that would mean the centrist break is gone and we could see a more left-leaning government in new zealand. the opposition national party is on to third leader. polling at 31%, struggling to cut through against what has been a competent response to the covid-19 pandemic. shery: new zealand's response to the pandemic is held up as an international success story, but how it has jacinda ardern's government done with other policies? paul: that is an interesting question because in political sense, the pandemic has helped enormously. it has been a strong response, just 25 deaths in new zealand. there is no community transmission. apart from a shattered tourism sector, life has gone pretty much back to normal. before this happened, the polls

had tightened up. this was looking like a close race because few of the policies and premises got delivered. there was a pledge to bridge -- to build 100,000 affordable homes. 538 and up getting billed. there was a pledge to build rail from the airport to the cbg . all of those failures were ofrshadowed by the crisis the massacre in 2019, then the volcanic eruption on the way island and then the covid crisis. it will be interesting if the next three years are quiet and all there is is a recession, the 2023 election could be curious. shery: let's get a quick check of the latest headlines. rio tinto has reported third-quarter iron ore shipments that fell 5%. warning that --

rio says demand from china counts from more than half of its iron ore revenue and has been supported by intensive stimulus measures in beijing. covid-19 and working from home has not stopped the wall street juggernaut. top investment banks are on pace for their first $100 billion trading year in a decade. trading has managed to upset banking operations. everts from china say grant has repaid two upcoming $1.7 billionbout as it tries to avoid a looming crunch. ever grant has fully met principal and interest option -- interest obligations while failing to cite sources. we returned to the u.s. election

battle or president trump and joe biden are set further separate town halls. -- set for their separate town halls. this is bloomberg. ♪

shery: let's get you the first word headlines this hour. kamala harris is suspending all travel after two of her staff tested positive for covid-19. her campaign says she and her husband are both negative in the latest tests but she's taking extra precautions. joe biden was negative in his latest test, too. neither of harris's staffers were in close contact with him. amy coney barrett is said to have enough senate votes to confirm her to the bench with mitch mcconnell expecting a vote on october 23. that is about one week before the election and would complete

the entire process in less than a month. mcats had little chance of stopping her and say the confirmation has been rushed. inigovernment protesters thailand have defied police orders and staged into rally in bangkok despite a state of emergency in the capital. demonstrators gathered in the shopping district. demanding democratic and constitutional reform and curbs on the traditional power of the monarchy. a new study of the great barrier reef says it has lost half of its coral in the last 30 years. researchers blame global warming and say only a massive reduction in carbon emissions can halt the decline. not only has the call died, but new coral is smaller on average. the barrier reef has seen many natural disasters but is being hit hard by the temperature rise over the last century. those were your first word headlines. shery: time for morning calls

for a snapshot of notable views ahead of the asia trading day with sophie kamaruddin. athay shares rebounding. what is the reaction from analysts? sophie: we have had a few updates from analysts at credit suisse raising pay to outperform. at jefferies, they are maintaining the hold call and price target, flagging concerns around unknowns for the travel bubble start date and the initial flights that could be had, expecting that to be limited. there could be implications for restructuring plans, but jefferies expects job losses on slower passenger recovery so earnings are not expected to rebound in the near term. the cash burn is jumping on start up costs. bloomberg intelligence expects it could lower the cash burn by 4.5% to 6%. haidi: it has been another tough week for income investors.

where to go for yields? sophie: ubs says while the hunt is made more challenging given the low rate environment, they are saying there are opportunities in dividend paying stocks. on the credit front, ubs sees value in asia. high-yield credit expecting spreads to tighten to around 600 bips. defaults look limited. basie room to tighten for e.m. sovereign dollar bonds. fromxpecting spreads -- the current levels above 400. elections are's being held this weekend. we know they have done really well handling the pandemic. what is the outlook for their economy? sophie: they upgraded the forecast for new zealand's gdp, labor market, as well as inflation, pointing to improving business sentiment as well as a stronger housing market.

economic growth bouncing back while the jobless rate is seen rising at a slower pace, 7.5 percent by 2021. anz expects a softer growth from the first half of 2021 for new zealand. anz sees a 50 basis point break out in april. risks looking more balanced for new zealand. haidi. haidi: president trump and joe biden will be on television in the coming hours, hosting competing town hall meetings at the same time. the president is suggesting he will face tougher questions and his opponent. joining us is the hoover institution fellow and stanford university director of domestic policy studies. he was a policy director of the romney campaign in 2012. always great to have you here on bloomberg tv and on daybreak australia today. this almost is symbolic of what we are seeing and what voters are thinking.

very few have not made up their minds if you take a look at polling and the voting we have had so far. much these town halls really move the needle, are they going to be that impactful? we know you are going to be watching the supporter you will vote for. >> i think that it's right given the fact that the two town halls are at exactly the same time, just on different networks. it serves as a little bit of confirmation bias in the sense that people will end up watching the candidates whom they support. to your point, i think there are very few undecided voters left at this point. i think those voters who are undecided have an inkling, have a sense of what direction they will go in, but fundamentally, the idea of the true undecided voter, somebody who does not have an opinion on donald trump, for example, my guess is that the voter is exceedingly rare at this point in the contest. asdi: the narrative would be

long as joe biden can stay the course and he's going to retain that lead, and we will not get an upset the way we did four years ago. if you were advising the trump campaign, what would be your advice as to how they can turn that narrative around? >> when they are talking about covid, the trump campaign is generally losing. it is not an issue that the president does well on. the american people have essentially decided -- if you look at public opinion polling, it is clear they favor joe biden on the issue by anywhere from 15 points to 30 points, given the poll you look at. the first imperative for the trump campaign has to be to turn the attention away from covid. that is kind of an all-encompassing issue here in the u.s., and they have to go to ground where the president is stronger and that is the economy, even though the economy has not been, you know, doing as well as i think the president would like to see it do,

obviously. it has gone through quite a comeback over these last several months. the economy is a natural strong suit for the president. the more they are talking about the economy, the better off their campaign is. the president has to be disciplined in the same way as he was at the stretch run of the 2016 campaign. >> so far, the president has tried to portray himself as being triumphant. he portrayed having immunity from covid as an advantage overbite and even though scientifically that is in doubt. we have seen this week the biden campaign have some covid scares. at the end of the day, could that work out for him where we have right now senator harris in isolation, quarantining and not traveling, just to be safe? skeptical about the notion that the president somehow has immunity or people around the president have immunity -- i'm skeptical that

that is going to end up swaying the american public in favor of viewing him as being strong on how he has done with respect to covid. i don't think that that is something that is likely to make an impact in terms of the messaging. i think the fundamental question is to what extent does the covid -- if there is a covid diagnosis on the biden-harris campaign team, if it ends up becoming more of an issue, to what extent it disables harris and/or biden from campaigning? one of the things trump is doing right during this period of time is spending a lot of time on the campaign trail. he literally has a campaign event in a different state every single day. today, he was in north carolina and in florida and he will be traveling pretty much every day. if biden and harris are not able to do that, i do think it inhibits their ability to have a stronger close. all that being said, you know, many americans are voting

already, and the reality is this election is being decided as we speak. people voting in person this year i think may of they go in favor election being decided a lot sooner than we thought. that, because of president trump is calling into question the legitimacy of this election, right? how big of a win does joe biden need in order for this election contested? you heard from the president several times. we will have to see what happens. lanhee: i think the reality is if biden is able to win, let's 300 20er 300 and 20 -- electoral votes, with a fairly large margin, it will be difficult for the president to argue that somehow, this is still a contested election, the results are somehow in doubt. it's a relatively closer election. if let's say for example one side has enabled to claim victory on election night, but

as the absentee and early ballots come in, it becomes clear that the results are changing. that is a potential recipe for greater instability. that is what we worry about is a scenario where the early vote does not match up with the election day vote to such a degree that it potentially changes the outcome. those are the kind of nightmare scenarios that people in the u.s. are trying to plan for and hopefully avoid. shery: right, lanhee chen, hoover institution fellow and stanford university director of domestic policy studies. next, top new covid-19 restrictions for london and paris as record numbers of daily infections are recorded across europe. this is bloomberg. ♪

>> breaking news out of south korea right now. sk telecom will be spinning off its mobility business with uber's backing, this from a co-you stock exchange finding. it will start midnight this year. the spinoff will not be traded publicly. sk telecom and uber have signed a joint venture agreement. saying thets

previously reported sk telecom seeking an hundred one billion investment.on won we are getting some more confirmation that the two companies have signed a joint venture agreement. let's turn to the latest on the coronavirus pandemic. paris is being put under curfew and londoners are banned from socializing with other households indoors as the second coronavirus wave intensifies across europe. record numbers of daily infections are being reported in italy, germany, and france, which has 30,000 new cases on thursday alone. fears around the economic toll are growing. we are joined by our health reporter, michelle cortez. how bad are things getting across europe and also here in the united states? michelle: across europe, there are 100,000 new cases a day so we are now hitting levels that we have not yet hit in this pandemic, and it is only the middle of october. we are expecting it to get worse

as the weather gets colder and more people move in, and being outside is taken away as an option, antivirus continues to spread. it is not boding well for the coming winter. the same thing is happening in the u.s., especially in the northernthe more areas. we are seeing increasing rates and not seeing any indication that it's going to be areas that have not been hard-hit initially that happened in places like new york and california. as we see these pickups and pauses, the vaccine theyeen developed by -- have released their results. what have you learned? michelle: good news coming from this vaccine. days.still early it did show that there is a production of antibodies to fight infections before the

virus takes hold in your body in people up to age 80. that is great news because older people are more vulnerable. that being said, the volunteers who participated who are 60 and older were less likely to benefit right away, but by day 42, 1.5 months after they got the immunization, they were producing antibodies. they should have offered some protection. shery: we seem to be seeing this travel bubble finally forming, and this one is between hong kong and singapore. how significant is this? michelle: really significant for these two locations. they are both relatively small. they don't have the big domestic economy that their airlines can help transport their own citizens, so opening up these two financial hubs to each other is really critical. it's also an indication that there is some comfort that they are able to control the virus between the two areas.

bubble bigger and allowing some interaction is really important. they are taking this very seriously. you have to have a test that shows you are negative for the virus and then you quarantine after the negative test to make sure you are not in some incubation period. they are not fooling around. they want to make sure they are not spreading the virus by doing this. rates,eas that have low we will see if it works and we are able to keep the financial hubs connected. haidi: michelle cortez with the latest. third quarter sales for a swiss drugmaker fell short of estimates as the beers from the ceo spoke islusively to that developing with regeneron. >> we are in discussions with regeneron to also seek approval

outside of the united states, so this is an earlier stage, but of course, we want to make sure that we bring this treatment option to as many patients as soon as possible, also outside of the united states. >> in the united states, president trump gave the treatment of a big thumbs up. he promised american citizens they would be able to have access for free. are you aware of exactly how that is going to happen? have you talked with u.s. officials about this? >> we have not yet started any pricing discussions with governments around the world. our focus for the time being is really to provide supply at this stage for conducting clinical trials and then ramping up supply as we bring this medicine to the markets. that is what we are focusing on, but rest assured, like in the

past, we will be very thoughtful regarding our pricing and make is possible for patients around the world. the bottleneck at this stage is building up the capacities. ceo speakingoche exclusively to bloomberg. we have breaking news crossing the bloomberg. blackstone says realties are to be sold in a $14.6 billion deal. blackstone real estate partners and investors have agreed to sell the realty company to a group led by existing biomed investors. it is the largest private owner of life sciences office buildings in the u.s. that have 11 point 3 million square-foot portfolio concentrated in the likes of boston, cambridge, san francisco, seattle, and well.dge, in the u.k. as

blackstone has agreed to sell biomed to a group led by existing investors there. we will get you more details on that story as we get them. plenty more to come on "daybreak asia." this is bloomberg. ♪

>> new zealand stocks are slightly in the red ahead of the weekend elections. today is the last full day of campaigning. voters having to the polls on saturday for an election that polls suggest will deliver a second term for the prime minister and her left-leaning guttering and -- government. the coronavirus pen debt sent the country into its biggest economic contraction since the great depression. for the second time in new zealand's history, women lead both major parties heading into election. as one of the most popular prime ministers the country has ever known. she led new zealand through the christchurch terror attack last year and more recently, one of the world's most successful containments of the coronavirus. her opponent is the leader of the center-right national party. she has a reputation for toughness, earning the nickname crusher from her time as police minister in a former government when she led a drive to crush

the cars of illegal street racers. there are genuine policy differences between the two major parties. maybury intends to raise taxes for top earners and increase the minimum wage. national promises tax cuts, especially for middle income earners, saying no country ever recession.ay out of new zealand's elections run on proportional representation. for's have two boats, one their local candidate, one for their party of choice. 60 seats are for local candidates and the other 60 are directly proportional to the party vote. makeabour party could history by becoming the first party to govern alone since the system was introduced in 1996. if she does need a coalition partner, the greens look certain to a return to parliament. as she knows all too well from her unexpected rise to power in 2017, shock results can

happen. shery: here's a quick check of how futures are trading. let's start with new zealand. we have seen key restocks come down from those record highs, trading at around 12,450 level, a second consecutive session of losses. futures looking like this. sidney futures down .2%, this as we had the asx 200 rising in the previous session. the aussie dollar remains under pressure right now. we have seen it weighed down by the rba governor's comments signaling more monetary easing near term. it was also heard by these australia-china tensions when there was rumors the cotton industry could targeted. mckay futures flat at the moment. this as we saw japanese stocks falling yesterday. watch fast retailing earnings out today. kospi futures down .9%. we could be headed for a fourth consecutive session of losses.

in the u.s., morgan stanley rounded out a winning week for the biggest banks after posting the second-best result in fixed income revenue, trading gains among the top five now headed for a decade high. our finance reporter is in new york and joins us over the phone, so how closely did morgan stanley track its peers such as jp morgan, goldman, or citi? it pretty closely. morgan stanley did really well in terms of this trading bonanza but we also saw big numbers from goldman sachs where trading revenue was up 29% from jp morgan. that revenue was up 30%. we are looking at traders on wall street really benefiting from act of an volatile markets. thehis economy changes, as stock market changes based on what policymakers are saying regarding the pandemic or other economic policies, clients have been repositioning quickly and that has venerated a lot of

activity for the banks. what else was really on the after a week of, balance, pretty encouraging numbers? >> this is a really interesting thing, haidi, the fact that the five biggest u.s. banks have generated $84 billion and trading revenue this year and yet the shares have really lagged. the bank index is down 31% this year so even though the banks have posted really strong gains on trading, investors are very concerned about the future economic outlook and to some extent, they are skeptical that these gains are going to last. haidi: finance reporter -- joining us. quick check of the latest business flash headlines this hour. masayoshi son is said to be stepping up pressure on holdings to strike a cease fire. we are told southeast asia's two most valuable startups are

actively talking although a sticking point remains whether they should merge all operations. tapin atlantic is aiming to into asia as aviation struggles to emerge from the coronavirus. it's offering new services from the u.k. to tap into a market of .5 million indians living in northern britain. it will launch flights in december. it flies so those cities out of heath borough. coming up in the next hour of "daybreak asia," we will be looking at the risks and the challenges ahead for the global economy. our special guest will be joining us. of course, the market open in sydney is next with a couple of technical -- showing we could get of rake out out of the range bound trading we are seeing in aussie stocks. the aussie dollar on the back foot this morning. lots more to come. this is bloomberg. ♪

shery: welcome to "daybreak asia ." i am shery ahn in new york. stroud-watts.idi our top stories this hour, asian markets are facing an uncertain start as investors await news that a u.s. stimulus deal -- president trump is pushing for a bigger relief package although the top republican in congress is not so keen. brexit negotiations lurched towards crisis after e.u. leaders sai