haidi: very good morning. i am haidi stroud-watts in sydney. we are counting down to is as major market opens. shery: i am shery ahn in new york. wall street closes higher on hopes of a stimulus deal in washington. itswhite house is raising offer and nancy pelosi says she is hopeful of agreement this week. fordoj sues google allegedly abusing its monopoly in what is seen as the most significant antitrust action

against a u.s. company in decades. google says the government case is deeply flawed. late tradenges in after missing on subscribers last quarter. it's outlook for the current period is below expectations and investors are not happy. haidi: we are just getting a little bit more of an update on these ongoing stimulus discussions in washington, d.c. nancy pelosi saying she is optimistic a deal can be done before the election and that she is calling on committee chairs to resolve some of the differences when it comes to funding levels and language so they can get back to negotiations between her and secretary mnuchin as soon as possible, crucially saying she remains hopeful an agreement will be safer, bigger, and better, and will be retroactive as well. we are seeing that reaction when it comes to the futures markets. let's look at the asian trading day. sophie kamaruddin is here with us in hong kong. seeing s&pare

e-minis gain ground and a muted start in asia with the asx 200 coming online little changed. bhp and astro pay among the biggest gainers. we saw the clients on tuesday and the aussie dollar holding a four-day decline here at o retails tales data and socgen saying he will have kiwi from the rba in november, seeing as yield differentials are more supportive in the long run. we are seeing nikkei futures trade slightly higher in chicago while the yen is a below 105.50. calling for a new range. at8 also seeing the renminbi 655 by the year-end. the offshore rate trading at a two-year high this morning with the 650, the next key level here. that has been a hurdle for the currency since june 2018 when the u.s. and china first started doing reciprocal tariffs.

ongoing dollar weakness providing a lift on the u.s. stimulus deal. shery. that shery: u.s. stimulus -- shery: that u.s. stimulus deal has been about the back and forth between pelosi and mnuchin, not to mention what the white house wants, and we heard from pelosi saying the stimulus deal would be bigger, better, and retroactive. here is what she had to say to bloomberg earlier. take a listen. >> we all want to get an agreement because people need it and it is urgent and our economy needs it. one little bump in the road with the appropriations committee. not sure they will be ready, but let's hope they are. we are starting to write the bill and what can happen in negotiation. to ourlet's cross bloomberg white house reporter. what does this mean in terms of the timeline for the stimulus package? thater pelosi said earlier tuesday would be the deadline. is it is still

going to be difficult to get this done before election day. that is something that is obviously on the mind of president trump. you have the senate voting impose italy next monday on the supreme court nomination, and then you still don't really have a bill together so they would need to spend a few days to write that and then spend some more time debating it and making sure senate republicans are even onboard because that is not even clear if that is going to happen. so still a lot of things with me to fall into place for this to happen before election day, but that being said, the talks did seem to make progress today and perhaps there is some hope for a deal after the election. significant with that retroactive line that we just got from nancy pelosi mean? very significant. they could be talking about plugging the gap that occurs in

the months between now and the last stimulus package, but again, nothing is really agreed to until speaker pelosi, president trump, and the senate majority leader, mitch mcconnell, sign onto a package, and thus far, senate leader mcconnell has said his members are still not really on board with a large stimulus plan so a lot still needs to happen. shery: what is the motivation for the democrats to want this package, if we get joe biden into the white house in november 3? wouldn't it mean they can actually get a better package and a better deal? jordan: perhaps, yes. it is still election season. not only are they vying for the white house, but the senate and the house as well. they want to make it seem like democrats are the ones who are holding up the deal, so they are holding the door open for a deal to get done while maybe not

rushing to get one done before election day, and then as you mentioned, the outcome of the election could have a big impact on how fast and what shape video wins, if indeed joe biden the presidency. haidi: our bloomberg white house reporter, jordan fabian, joining us with the latest. karina: the pandemic shows no sign of slowing down. europe continues to be a coronavirus hotspot with new daily infection records in germany and the netherlands while spain is weighing a curfew in madrid and manchester is being forced into the u.k.'s strictest curbs. andrew cuomo claims president trump for virus deaths in the state, calling him a liar and super-spreader fears california is using restrictions in san francisco. aemployment in hong kong hit 15 year high amid deep recession. cutting 6000c is

jobs and cutting its brand. the china morning post says they will really announce the cuts on wednesday. e 8000 intended to ax reporters but reduced that after government intervention. the proposed travel bubble could start with one flight a day although that could change depending on how the coronavirus plays out. a start date is still uncertain. both cities have said they hope it starts within weeks. travelers will have to have been in the cities for 14 days before flying and will need to take recognized virus tests. ahammed bin salman is facing criminal lawsuit in the u.s. over the murder of regime critic jamal khashoggi. he and 20 others are named in papers filed by jamal khashoggi's fiance and an advocacy group. he was killed by saudi agents istanbul in 2018. prince mohammed denies any involvement but accepts responsibility.

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi, over to you. netflixtill ahead, disappointing on the result. subscriber numbers suggesting the pandemic boost is starting to wane. we will break down those numbers and the outlook later this hour. we will be discussing market strategy with our guest. her top picks and why she is banking on sustainable values, coming up. this is bloomberg. ♪

haidi: we are getting a business operational update from the gap. the gap saying they are reviewing their warehouse this tradition model as well as undertaking a strategic review of options for their business in the european market. gap saying they are looking at

options including the closure of company operated gap stores in europe. they are saying they are beginning the strategic review of options and the possible closure of gap stores would affect markets including the u.k., france, ireland, and italy at the end of the second quarter in 2021. they are reviewing their warehouse and distribution model as well as their gap and banana republic e-commerce operations in that same market in europe as well. one of the possible outcomes flagged in that market is the closure of the e.u. distribution center in rugby so we are getting a little bit of restructuring and downsizing or streamlining for the gap's operations in the european market, this despite a lot of analysts getting more bullish on the retail scene when it comes to the u.s. market. financial as ant heads into its record-breaking ipo, there is another major

chinese company looking to seize the moment. that a reporting ridehailing company is in talks for a 2021 ipo in hong kong. for some perspective on the chinese ipo frenzy from a value focused investor, let's turn to the portfolio manager and managing director at thornburg investment management. great to have you with us. what are the implications? i know you are focused on companies that are already listed, being value investors yourself, but is this a really bullish signal when it comes to the amount of interest in the hong kong market, and in particular, as we continue to see a lot of chinese companies coming home? >> yes, that is a great point. we are seeing a lot of chinese companies listed in hong kong. a lot of them still listed in the u.s., in that market. a lot of them are technology companies, clearly benefiting dom covid, work from home,

everything at home kind of trends. and trying to get ahead of u.s. elections. excited about a nt financial it -- ant and group. it is something we indirectly own already through alibaba group and we think the simtech in china could be a solution for many underserved areas. anti--- ant is well-positioned. base,ging its scale, user driving mason growth in china, so we are pretty excited about upcoming ant ipo for sure. haidi: there has been such interest, given it has been so many years in the making, and it is the crown jewel for jack ma,

but in terms of looking elsewhere, that is not such a big headline, what other stocks are you seeing opportunities for at the moment, particularly in that asian ems space? di: we really are continuing to like the chinese consumer recovery story. and this is alibaba benefiting from that. we areother example that very constructive in the near term and the medium-term. we really like the secular growth story. strong brand and product momentum, to drive continued growth and recovery in the near term. and there's also an emerging expansion story. stock has been doing very well.

valuations are also improved significantly, so fundamentals are very attractive at this point. shery: and when you go for those chinese stocks, would you invest rightly in the main the markets? gtv charts on the bloomberg showing chinese equities listed in hong kong have underperformed their mainland peers this year. >> we do both. we have access to hong kong market and also to china a share markets. be -- the markets will be fair game for us. shery: how does the strength of the yuan, which is now at a july 2018 high against the u.s. dollar, factor into your investment decisions? di: we think about currency a lot as international investors, and you have to think about,

from company level perspectives, where the revenue coming in, what dollar, work currency, and where the cost is coming in, and whether companies do hedging prettyves, so rmb, it is tough to hedge because the cost of hedging has always been high. lately, it's been pretty strong, and we think the reason why it is strong is a couple reasons. one, clearly, covid. recovery first from covid perspective, and two is increased rate differential. central banks globally continue to implement their own policy or even negative interest rate. there is interest rate differentials being afforded to rmb, and thirdly, it's really about flow. chinese market is the best performing market here today.

more flows coming to chinese markets. rmb is still supportive of appreciation. i think we are generally still pretty constructive in the near term. we might see a little bit of reversal in the medium-term. i am wondering how you look at companies that have obviously been pandemic darlings, that have benefited from the lockdown, to ones that will continue to see that growth trajectory. we have netflix earnings, and clearly, investors are reacting to the idea that the lockdown binge is starting to fade. how does that work out for the company? is that just the pandemic accelerating an existing growth path? di: that's a very big part of think it's ay, we

company that is best positioned to be the most profitable delivery company in the whole world. being an international investor, we see a lot of food delivery companies across the globe. this is the best positioned just because of the scale and just because it's in china and it does have a number one market share, and then the covid accelerates existing trends, so now, if we see them continue to reach their path to number of delivered goal and profitability, we still see a lot of room for the stock to perform. shery: great having you on. thank you so much for your insights. jordan fabian is the managing ♪ -- she is the managing director.

we will have details of the case and the companies response. this is bloomberg. ♪

haidi: google is facing one of the most significant antitrust actions against an american company in decades. the justice department is suing the company, accusing it of abusing its monopoly. marc bergen us now. it was interesting we saw google shares actually rise. is this really the market and investors calling the government's bluff and assuming the process will take ages and there is no expectation this is going to translate to any real penalties? >> it's a few things. there might be that this is this case and the focus is on the default deals google has for placing search engines on

iphones and other devices and browsers. it's not about them breaking up the company so the likelihood of it on androidg and google maps is reflected in the stock price rise. there is this expectation that estimated $8e pays billion to $12 billion for apple -- if that is outlawed, that's a lot of money that google does not have to pay so in some ways mother is still a silver lining there. shery: how much regulatory risk is google facing at the moment? looking at investigations from the texas attorney general or other separate groups of state in its search practices. an expectation. some additional states may come out as early as next week and that could focus on digital advertising. there's also a fair amount of risk now that regulatory pressure that google is facing in countries like india,

obviously, there's the european union, where the remedies and the next of the multiple lawsuits are breaking out so i think google is facing it's all over the world. this reports they might have a case in china as well as of this is certainly not a single case. shery: how big of a role is bill barr playing in all of this? mark: he was not on the call. his number two was this morning. there's been some reporting that the is a political case and department of justice flatly denied that and said that this google brought about how is suppressing conservative voices. bill barr has a background in the telco industry and that's on little bit reflected in the way that this case is brought. from our reporting, this suggests there are a lot of career lawyers at the doj that were actively involved. shery: mark bergen, with the

latest on google. emily chang asked google economics policy director adam cohen for the companies response to the lawsuit. adam: we think that this case is deeply flawed and risks harming american consumers. we compete vigorously in the marketplace. our sector is marked by prices that are free or following and rapid innovation and those are hallmarks of a competitive industry. google pointed to the ability for folks to download whatever app they want pretty easily, but if that is the case, why pay billions of dollars to apple to be the default or to mobile characters to change the default and find another option? adam: people are choosing google because they choose to, not because they are forced to. as an example of this, when you number oneg, the search term is google. people know how to access google if it is not there.

what we are doing in terms of distribution of our search engine is no different from when you go to the supermarket and you see boxes of cereal at eye level. coke has a promotion at the end of an aisle. these are promotional agreements so we can continue to promote our products and services to continue to reach consumers and encourage them to use our products. emily: how confident are you in google's defense? confident enough that you could win this in court? adam: absolutely. if you look at our sector, prices are free and falling. there is rapid innovation and lots of choice. you described a scenario where people might struggle to find alternatives. this is not the 1990's where you had to get in your car and go to a software store in order to buy an alternative -- find an alternative browser. today, products are preinstalled in these devices. they are right there an easy for consumers to access and if you don't like the ones that are

preinstalled, you can download them easily. most of the most popular applications today, facebook, snapchat, spotify, and others, they did not become popular because they were preinstalled on devices. they were popular because consumers found them, downloaded them, and now, billions of people are using them. adam: adam: speaking to -- speaking to emily chang. two of china's top tech companies have been banned from more 5g networks in europe. toldi and zte are being their technology must be removed from existing swedish infrastructure because of what stockholm said is the influence exerted by china's one-party state over private sector. washington described huawei as the back of the communist party's surveillance efforts. isnese ride-hailer -- purported to be intense with anchors for an ipo in hong kong next year that could value the company at $16 billion. discussions began after they moved into profit in the second quarter with the secondary plan for a new fundraising round

before any share sale area it is backed by alibaba and softbank and has already been valued at $56 billion. snapchat's parent beat estimates for quarterly revenue and user --wth, listed by higher higher spending and more users turning to mobile devices. income rose to $678 million, above the average forecast of 560 million. snapchat says it had 200 50 million daily active users in the september period compared to 240 4 million projected in a bloomberg survey. coming up next, we will be discussing the prospects for u.s. team is as the countdown to elections keeps on ticking along. nancy pelosi sounding optimistic that a deal will be done before the big boat. the chief economist, carl tennenbaum, will be joining us next with his views. this is bloomberg. ♪

karina: i am karina mitchell with the first word headlines. u.k. business leaders say they are unhappy and unconvinced. leaving the e.u. will come with upfront costs. company bosses were urged to prepare for the looming split, deal or no deal. boris johnson joined the meeting, saying whatever happens, change is coming to the u.k. the u.k. government is set to abandon plans for a three year spending review. boris johnson attempts to map out his priorities for a post-pandemic world. richey c not -- the minister

told him a stop gap is needed. the treasury declined to comment but they say it's been in intensive talks with downing street. over to thailand, it is welcoming its first foreign tourists for seven months. a rate of hope for a sector that is crucial to the national economy. 39 chinese individuals carrying special be says that will require them to test for the virus and install a tracking app on mobile devices. bangkok reported nine new infections, all of them reported -- imported. hopes are rising honesty must deal in washington with the white house raising its opera and speaker nancy pelosi saying she is hopeful of agreements this week. mitch mcconnell says the chamber will debate any stimulus package if a deal can be reached. losey told bloomberg earlier that more work is needed to overcome spending issues but progress is being made and a bill is being drafted. >> we all want to get an agreement because people need it.

it is urgent, and our economy needs it. to have one little bump in the road for the appropriations committee, i'm not sure they will be ready, but let's hope they are. we are starting to write the bill and then what can happen in negotiations. i am optimistic. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. shery: as we just heard, nancy pelosi saying she is hopeful of an agreement of stimulus be for the election, but our next guest does not share that optimism. crawl tennenbaum joins us from chicago. great to have you on. if we do not get a package before the election, could a blue wave potentially offset the economic fallout if in fact we do get a much larger package, albeit a little bit delayed? carl: one of the few things

besides agree on is additional is needed. the original bill in the united dates, because the care -- called the cares act, was designed for a performance a six month pandemic window that we have pushed past. we now have some of the support expiring. you can see in the economic numbers, they are calling on the congress to act. what is interrupting it is two things. one is politics, with the election just two weeks away. calculate trying to political points they would score with certain features of the bill and the second is determining what composition it should have, breaking it down for support for those who are unemployed, small businesses, state and local governments. i wish we would get a bill because the economic outlook would be buoyed by a. the polls have been going -- if the democrats succeed in taking the senate and the white house, a larger, more comprehensive bill is certainly possible in january. shery: let me bring in more

politics into the mix. president trump's taxes, the new york times right now reporting some more details, saying the records shed new light on chinese business pursuits, saying president trump's tax records show he actually holds a chinese bank account. he raises questions about his opponents standing with china, of course with his rival joe biden, but his taxes now reveal details about his own activities, including a previously unknown think account. that is from the new york times. turns out china is one of only three foreign nations. the others are britain and ireland, where mr. trump maintains a bank account, according to analysis by the new york times. let me return to you. this will be a contentious november 30 election. how much buffer do americans right now have without another package by then?

we have seen, when it comes to the savings rate here in the u.s., being pretty elevated. look i think you have to at the composition of who is saving and who is spending. this is the genesis of what some are calling ak shaped recovery where those who are able to work from home, they have come through the pandemic so far reasonably well. they are doing a lot of saving in part because they are not able to get out and about the way they would normally whereas on the other end of the income spectrum, you have those concentrations of those who have been put out of work, and while evidence shows that they did build up a reservoir when they were receiving supplemental auto plumbing benefits, those savings are being depleted at a frightening rate that cannot sustain them for very much longer. there is worry not just about their own spending and the holiday season but their ability to make rent, and many of these people were just laced just because of bad luck in the

pandemic. they might work in the hospitality industry, and for me, that makes the case for supporting them a little clearer. important is it too potentially from around the necessity for states and cities in the u.s. to go into renewed lockdown or at least targeted levels of lockdown, if we continue to see cases rise? haiti, what our audience might not realize is state and local governments in the united dates wait one out of eight americans. one out of eight americans. they are amongst the biggest employment sectors and in the last job report, they were one of the few sectors that was shedding jobs. the struggle that they have with their own budgets, which are dependent on sales taxes, it is leading them to cut people and services at a time that many of them, like educational and health services, are desperately needed. if they do not get a, there -- , their recovery will be

important for the economic recovery. the reason we are looking at downside risks for the outlook for 2021. haidi: just kind of switching tack a little bit, i'm curious as to what you think. your scenario as to how treasury yields and debt postelection. for example, if we get a bigger than expected stimulus deal, either as a result of these ongoing negotiations or as a result of a blue suite, does that mean we see higher yields because increased finance into fund that tumulus? carl: that is certainly one factor that would play in and the market has been drifting upward after staying at around 65 basis points to the yield on our 10 year government bond. atare closed today, trading 80 basis points, which is a modest increase but certainly a departure. i think the wildcard is what the federal reserve will do with its quantitative easing program and i, for one, believe that if we

get another stimulus package, that the fed will do its part and up the ante with its bond purchases, thereby keeping the financing costs at a reasonable level. the fed has declined, up until this point, to announce a yield curve control program of the kind they have been australia but i had always thought they were operating without committing to it, the fixed income markets. it will be a test of their resolve. shery: where does this put the u.s. dollar? carl: the conventional wisdom is would create a lot more fiscal deficits and heighten spending. it would be bad for the dollar. i think that that analysis needs to be examined fairly closely because if it is successful in accelerating the american recovery relative to what you are going to see in other countries, that could be very strong the dollar.

fiscal challenges we have in the united states, and they are many, and they are complicated area if you take a look at other markets, especially the european markets, they are facing politics and economic process -- prospects that are even more uncertain. china's recovery has been impressive. i think analysts are wondering whether they will be able to keep up recent momentum with many other export markets slowing down and domestic consumption still a little bit slow to recover. great to have you with us. carl tannenbaum with us. just to recap that new york times story, across the bloomberg, saying tax records show president trump holds a chinese bank account. this is one of three foreign nations, the others being britain and ireland, where the president maintains a bank account. we know the chinese account is controlled by trump international hotels management. they were pursuing licensing

deals between 2013 and 2015, and we also know that a lawyer for the trump organization is saying the account is mostly dormant with no deals, transactions, or other activities materializing, and it has been inactive since 2015, but it certainly does shed an interesting light when it comes to president trump's dealings in china, given that he has made much of his campaign being focused on coming down hard on his rival, joe biden, saying he is going soft on beijing as well as focusing in son's business activities as well. we are just getting that reporting that president trump does in fact have a chinese bank account. nobel laureate and columbia university professor -- wants to rewrite the rules of the market economy. he joined bloomberg tv to discuss the need for more fiscal stimulus in the u.s., and the key fiscal policies he says will be needed after the election. broadelieve there is a

consensus in america on a wide range of issues, and i think creates in a position to that middleground, to get that common agenda adopted. for instance, everybody is concerned about health care, the cost of health care, access to health care. the proposal of a public option is a good way of getting it to everybody. >> you are looking at this with your new book. people, prophets, progressives capitalism for an age of discontent. you brought our steinbeck over the american economic mind with discontent. this is absolutely extraordinary. what can a legitimate biden policy accomplish? what is the first order condition you see? joseph: the first order is getting the economy going again.

janet was absolutely right. there is right now ain't need for fiscal support, especially at the bottom. shapedtalk about a k recovery. those at the bottom are having a very hard time. the unemployment rate among certain groups of the population are very elevated. thing. is one but there are certain sectors of the economy that are badly afflicted and they need assistance. for instance, i am in one of those. the education sector, research sector, and those are sectors that are going to be vital to the country pot future. if we let those weekend, we are not going to have -- we are going to have a weak economy now, but we are going to have an even weaker economy in the future. >> one thing we have been talking a lot about in the past few months has been gdp and how it's going to go down dramatically on the heels of the pandemic and you were recently

quoted in a bloomberg article about how this is not a great measure of people's well-being. he also set high prices in the stock market are an even worse indicator of societal well-being, focusing on the wrong things can lead to taking the wrong actions. what wrong actions have we been taking up until now? the focus on the stock market really is perverse because we know, underlying the growth in the stock market are a few companies, silicon valley, giants, doing very well, as a result of their monopoly power. people going to the stock market because interest rates are so. bonds are so low that they are piling into the stock market, and wages are not doing very well, and that helps the stock market. all those are things that are weakening our economy. it is almost perverse, the strong stock market is almost a sign that things are not going

well in other parts of the economy, so we need to focus on the role of market power in our economy, the low wages. the fact that at the bottom, wages are the same as they were 65 years ago, adjusted for inflation. and most importantly, we need the aggregate demand going up so that the economy -- so that jobs are there for all americans. and that will not happen if we do not have that school stimulus that janet was talking about yesterday. the nobelt was laureate in economics and columbia university professor. i, fears of a new virus epicenter in the u.s., as cases rise across the south and skepticism grows about a vaccine. this is bloomberg. ♪

haidi: let's get a look of how asian markets are faring with sophie kamaruddin in hong kong. trade: half an hour to for aussie shares. we are seeing gains of .3%. banks and some miners leading the advance, but consumer names are under pressure. staples being led lower by wesfarmers and kohl's. the aussie dollar picking up just a little bit of steam,

holding a four-day day decline as rates cut pricing is considered an westpac says a push below 70 for the currency would be a chance to buy the aug. they are sticking to the year-end forecast. nikkei super futures opening higher by .2% while the yen is trading study. middle incentive to trade until we get a clear outcome on stimulus talks, and on that, optimistic remarks by pelosi on that front sparking a rise in u.s. futures while the dollar is holding overnight losses. news: we do have breaking at the moment. we are hearing about cathay pacific's restructuring plan. cathay pacific is expected to cut 8005 hundred jobs. they are saying they are going to see dragon airlines operations. they are going to cut 8500 jobs and the restructuring itself will cost 2.2 billion hong kong dollars. we were expecting this sort of

restructuring with job cuts, but the numbers of jobs that will be axed, higher than reported by media. cathay pacific hard-hit by the coronavirus pandemic and now restructuring its business and hongll cost 2.2 billion dow kong dollars. also, the restructuring will cut monthly cash burn by 500 million hong kong dollars in 2021. this is the latest we are getting about cathay pacific's restructuring and this of course is coming on the back of hong kong and singapore establishing a travel bubble with one flight a day, still not enough to offset all of those losses and that impact that cathay pacific has suffered during the virus pandemic. into what isper happening with the coronavirus pandemic globally, because here in the u.s. as well, there are

fears that southern dates are becoming covid-19 hot spots. the rise in cases is being met with public skepticism about coronavirus vaccines, which ash hopes. michelle cortez in minneapolis. bad is the situation in these southern states? michelle: we are seeing the number of cases starting to rise again in the southern states. more significantly, the hospitalizations and deaths are continuing their increased. we are hearing an awful lot about new cases in the midwest and what is happening is that there is a continuing rise across the midwest. in the south, we had seen a decline and that is starting to reverse as well so it is the combination of new cases in the midwest and a return to increasing cases in the south that's creating an overwhelming number of patience for hospitals -- patients for hospitals and

local communities. haidi: is there a sense we will need to see more drastic knocked down measures? most likely that we will be needing to take some serious steps in order to stop the virus from continuing to spread in the u.s. and around the world. we definitely are in a situation now where the virus is well seeded. it is not like it was six months ago or nine months ago when we were starting to see small outbreaks and clusters of cases. now, this virus is literally in every county in the u.s. and most places across the world, so it can be starting like a tiny forest fires, beginning from literally anywhere, and if we don't take some serious measures to dampen it down, it can burn out of control. shery: no wonder we are seeing this idea of herd immunity continuing to spread despite the fact that mainstream scientists say that this would not work. michelle: going back to the

theory of a fire, if you literally burn it all down, at some point, the fire will stop. and that is exactly the issue of what we are talking about here. in order to get to herd immunity, basically, you are making every person who could potentially pass the virus along immune, the way that they are talking about it, by getting people who are relatively healthy infected, and then it would be like a fire break to stop the spread from happening. the challenge is that you cannot control specifically which people are going to get it and you don't know how they are going to really do. while it is less likely you will die or have a serious complication if you are younger, you can still die and you might not know you have other comorbidities so it's a dangerous approach that public health officials just really do not want to pursue. shery: michelle cortez in minneapolis with the latest. we do have breaking news out of south korea as well. export numbers

and import numbers for the first 20 days of trade of this month, and the daily average for october, the first 20 days, rising 5.9% year on year. when it comes to the first 20 days, just brought me, it actually fell 5.8%, but the daily average still a rise of 5.9%. chip exports, the bright spot, rising more than 12% year on year. experts for china -- exports following more than 2%. we continue to see external demand really hit, given the ongoing pandemic. imports, the first 20 days following 2.8% year on year, but this of course coming on the backdrop that we have seen south korea's exports rise for the first time in seven months in september and for the first 20 days of october of the daily average also a rise of five point 9% year on year. up next, netflix slumping in

extended trade after its results fell short of expectations. we will discuss. this is bloomberg. ♪

renewingtflix plunged, doubts about its ability to maintain growth. our senior analysts joins us now. third-quarter

numbers, is the subscriber party over? >> you know, the pandemic has obviously been this unquestionable tailwind for streaming in general, but as we saw in those numbers, the virus boost has finally sizzled so in a way, i think the subscriber fair,is over, but to be the company did warn of this massive effect. in the first half of the year, they added 26 million subscribers. that's usually the number of subscribers they added over the course of a four-year. we did have lockdowns getting lifted. we did have earnings. millionearly 200 subscribers now for netflix, and if you look at adding about 35 million subscribers to the course of 2010 a, if you look at that number, that's almost 25% more than last year, so we are going to see choppiness from quarter to quarter, but the more

important story, the important point that investors really need to get comparable with is the underlying trends and the overall growth stories remain very much intact. netflix growth is tied to content. what do we know about the pipeline for 2021, just quickly? >> content has been a key differentiator for netflix. ofy have mastered this art reading shows that captures the zeitgeist. for 2020, they said they pretty much have shows lined up. there were questions with production shutdowns about the 20 when -- 2021 slate. almost all production is back on track, so we should actually see the numbers in 2021 rising. shery: great having you on. bloomberg intelligence senior industry analyst. coming up on "daybreak asia,"

investment specialist janet will give us her thoughts on asian assets. the market opens in seoul and tokyo are next. this is bloomberg. ♪

>> welcome to daybreak asia. i'm shery ahn. >> and i am in sydney. asia's major markets have just opened for trade. optimism of a stimulus deal in washington. nancy pelosi says she is hopeful of agreement. under pacific remaining pressure, cutting thousands of of adespite the boost

travel level between hong kong and singapore. protesters in thailand employ social media to organize rallies and stay one step ahead of the police. let's get straight to the markets with tokyo and seoul coming online. sophie kamaruddin in hong kong. sophie: in japan, zi yan trading steady. the currency in a new range of 102 to 106. the nikkei 225 adding 0.2%. japan is discussing restarting flights with china and we are keeping an eye on operators. suntory is considering acquiring , chew. to south korea this morning, we got trade numbers showing exports falling at a slower pace for the first 20 days of october but we did see a near 6% rise in daily average

shipments. more strength for the korean won been after it breached 1140 for the first time in over a year. the won may also come through depending on how that deal is executed. let's check in on trade in australia. stocks being led higher on the asx 200. earnings are in focus down under. australian dollar just trading near a three-week low. the dollar just holding onto losses while u.s. futures are rising. u.s.amid optimism that a pre-election stimulus deal may be secured. pulling up the chart on the terminal, we have seen it top 2019 highs against the greenback and it is closing in against a

basket of currencies. we've got to wonder if the pboc may want to tap the brakes, but so far, seemingly comfortable. and weakness giving a boost to emerging markets. they are posting the fastest earnings upgrades globally. above the increase for earnings estimates in the same period. our next guest things investors should keep hunting for yields as asian equities present good opportunities. ,oining us now is janice investment specialist at j.p. morgan asset management. asia posting a 13% increase in profit estimates since the end of may. what does this do to valuations across the region? >> thank you for your question. has stagedrall, asia

a very strong recovery in the last few months. there are a few drivers. number one is the economic recovery. out,r two, as you pointed earnings have been quite good. particularly if you look at the earnings provision which has shown a v-shaped rebound. that is very positive for the market. more ipo's in and the pipeline. coming back to your question on back tons, we are now around long-term average valuations. typically and historically, if you look at the market, usually around average valuations.

market is more sensitive to earnings revision. we remain comfortable with valuations and asian equities. shery: when you talk about more ipo's, a lot to do with what is happening in china. not to mention korea and taiwan. are you investing in those markets or can you find better discounts somewhere else? >> i think technology is a very interesting area, particularly in the last one or two years. you have seen that asian tech stocks have really caught up with u.s. peers. i think overall, we can find a lot of companies in asia. korea,mple, taiwan,

while some of these are strong this year, if you look at the valuations, it is actually not expensive. they continue to deliver on earnings. apart from hardware, if you go to the software space, many software companies have done very strongly. mainly because of the digital trend. orders,d expect more more infrastructure solutions orders for the software companies. onlinemention entertainment, online shopping, etc. think there are very abundant opportunities in the tech space. wondering nowi'm that we are less than two weeks out from the u.s. election, what are the potential disruptions that you could see to asian

markets, in particular as you talk about the tech universe here? investork from an point of view, a timely and orderly transition is more important than the outcome of the presidential election. given that around 35 million u.s. people already voted and we still have two more weeks to go, it is possible to have the results sooner than we expected. also i think biden continues to lead by a margin. whether the results can be contested is the question. coming back to the market implications, the market doesn't like uncertainty. we have uncertainty on who is the next u.s. president, the market will move on. perhaps it is even better in terms of market sentiment.

i think we would like to focus other trends. hearinge are also potentially that hopes are still alive for a massive fiscal stimulus boost before the election. certainly we would expect one after the election. how does this play into your assumptions on the u.s. dollar and is that still a driving force behind e.m.? >> definitely. historically a weaker u.s. dollar is positive for e.m. or asian equities. if we look at the u.s. dollar trend, it has been an important market in the past. if you look at the u.s. dollar fundamentals, i think no one will argue that it is quite overvalued. if you look at the trade

deficit, etc. from our point of view, u.s. dollar should be on a gradual downtrend and that should be very positive for asian equities. from: all right, janet j.p. morgan asset management. let's get you the first word headlines with karina mitchell. >> we start with the new york times, publishing more reporting about president trump's financial records including details of a previously unknown bank account in china. the newspaper says the account is allegedly controlled by trump international hotels management with his tax records showing he paid almost 200,000 in chinese taxes when he was seeking licensing deals. the u.k. government is set to abandon plans for a three-year spending review, a setback for boris johnson's attempt to map out his priorities. the financial times says the chancellor has told them that a stopgap plan is needed because

of increasing uncertainty. the treasury declined to comment on that, but there have been intensive talks with downing street. and europe continues to be a coronavirus hotspot with new daily infection records in germany while spain is weighing a curfew in madrid and manchester is being forced into curbs. in the u.s., new york governor andrew cuomo blames president trump for virus deaths in the state, calling him a liar and a super-spreader fears california is easing restrictions in san francisco. cathay pacific cuts thousands of jobs and prepares to close its low cost dragon brand. local media reported 6000 job losses. will mean 8500es positions gone. executive pay cuts will continue

through 2021 and restructuring will cost 280 million u.s. dollars. 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. back over to you. haidi: still ahead, more analysis on those big cathay cuts. we discuss the implications. coming up next, house speaker nancy pelosi gives market some cause for optimism. she says a pre-election deal is still possible. this is bloomberg. ♪

haidi: house speaker nancy pelosi and treasury secretary steven mnuchin appear to be moving closer to a deal even as mitch mcconnell reportedly advises the white house not to agree. kathleen hays is here with the

latest. what is actually going on that makes pelosi more optimistic? she is saying a deal before the election is still possible. katleen: and others say it is not but it does seem like progress is being made. nancy pelosi was saying, we just need more details. suddenly it sounds like she and stephen mnuchin have got to a point where each side has maybe taken some steps toward the middle. bloomberg television had a great talkingw, nancy pelosi on our power and politics show. even before she talked to stephen mnuchin, she was sounding pretty upbeat. speaker pelosi: we all want to get an agreement because people need it and it is urgent. and our economy needs it. we have one little bump in the road with the appropriations committee. we are not sure they are going to be ready, but let's hope they

are. i'm optimistic. haidi: policies spokesman after the talks this afternoon said they are providing clarity as the two of them move closer to an agreement. mark meadows, the white house chief of staff, he confirmed importantly that the white house has moved its willingness to make a deal to 1.88 trillion. republicansest time said even one trillion is a lot. it is getting closer and closer to the democrats' 2.2 trillion. we still have a long way to go. democrats and republicans are still at odds over a to state and local governments. tons of people are getting laid off. we need to get some support to keep those jobs. republicans don't want to give jobs to cities and states that

haven't manage their finances. pensions is a big problem there. pelosi is apparently preparing a counter offer for steve mnuchin on the republicans' desire to have liability protection, protection against lawsuits that stem because workers are going to work at a company, at a school, wherever it is. they don't want to have frivolous lawsuits. opponents say that nobody will be able to get close to getting money. at any rate, it does seem like progress is being made. what happens tomorrow once again is going to be closely watched, and if it can go ahead, that is a good thing. shery: yet this is not going to go anywhere if you don't get senate republicans on board. katleen: one of the most important stories we got today was mitch mcconnell had told his

colleagues that he's advising the white house not to go ahead. billnot going to support a -- he will take it to the floor if it is presidentially supported, but he doesn't think they should try to strike a stimulus deal before the election. this is in opposition to what donald trump wants. people say he's desperate, way down in the polls. he thinks this will boost him up. republicans are saying they don't want to be in a position where they defy trump on a stimulus bill or alienate their conservative base. and there's the supreme court. amy barrett, they want to get that vote before the election. they are afraid that will be derailed. apparently mitch mcconnell has said -- he told reporters he's ready to consider a bipartisan deal, but when asked if he would bring it to a vote before the

election, he wouldn't answer that question. of the republican speaking out, mitt romney saying he does not -- he thinks that 1.8 trillion is too big. richard shelby of the senate appropriations committee saying, we just don't have the details. we can't even start working on this yet. he is not optimistic on anything happening. the democrats seem to be getting closer. some of the most important republicans in the senate are shaking their head. it is going to be interesting to see how this works out, where the politics end and the realization that people need money now takes over. global economics and policy editor kathleen hays. the role of retweets in thailand's antigovernment protests. how rally organizers in bangkok are using social media in their

movement, next. this is bloomberg. "bloomberg markets: china open -- ♪

haidi: as protests continue in thailand, emojis and retweets are becoming more important. social media platforms like facebook, twitter, and telegram have emerged as the backbone of the rallies. furthermore, we are joined by our reporter, randy, in bangkok. we are seeing this enabling of the civil rights movement thanks to new social media platforms around the world. you talk about black lives matter or in hong kong. how is this playing out in thailand? in thailandsters are using the social media platform very creatively. platforms such as facebook, twitter, and telegram have really emerged as the backbones

of this decentralized and leaderless movement that is calling for the government's resignation. they are using these online forums to communicate among themselves and ask supporters to vote on when and where to rally and where their next move should be. earlier this week, the organizers asked supporters on facebook whether they should hold rallies that day using the chair emojis reaction and the wow emojis as a vote for keep going. shery: that is interesting, but what does it mean for the police? in the past -- protests are nothing new in thailand, but you would have key political figures out and about and you would sort of contain that. how are the police dealing with this? reallyal media has

helped these protesters stay ahead of the authorities that have been trying to quell this movement since the government declared the emergency rules last week that banned large gatherings. because of the use of social media, they are flexible and nimble. they can call gatherings quickly and disperse quickly when there a crackdown. they can move to a new location if police block off a path. we've seen this tactic used by protesters in hong kong. all right, in terms of the level of government crackdown and where the momentum is headed, what is the latest with the protests? >> we still continue to see daily gatherings. withovement has escalated gatherings in several locations in bangkok and across thailand.

yesterday, the government backed a plan for the parliament to hold a special session to discuss pathways to de-escalate this movement. the protesters have vowed to carry on demonstrations until their demands are met with another gathering expected later this afternoon. shery: thank you so much for that update. here's a quick check of the business flash headlines. two of china's top tech companies are being banned from 5g networks in europe. being toldcte are their technology must be removed from existing swedish infrastructure because of what they say is influence exerted by china's one-party state over its private sector. huaweiton has described as the backbone of the communist party's surveillance efforts. casino operators in macau are expected to post a combined loss of $800 million.

and mgm china are expected to have the biggest percentage changes from a year ago. exports declined in september, dropping for an eighth consecutive month and continuing their longest decline in about three years. shipments fell by around $1.75 billion as the industry becomes more reliant on demands from china. ubs beat most of wall street, posting better-than-expected third-quarter profit. the ceo is leaving the bank with one of its best quarters since he took the helm nine years ago. >> if i could go back, i would probably propose to balance more capital returns between cash dividend and share buyback. the one that has been staying around for nine years do

.emember that they got i think what is important is the facts and that going forward we will continue to deliver strong returns to our shareholders by executing our strategy. that execution -- he joined you a number of months ago. are you -- is the wealth management division lending more and taking more leverage? >> he is part of the team and has been a strong addition to the team. they are a perfect couple. when you look at lending, we had more than 10 billion of lending in this quarter. the strong performance was coming from the americas and not from the areas where it is more

on a day-to-day basis. lending is a strategic priority for ubs and not for a single person or single segment of our business. manus: lovely interview, by the way. in that, you say, my best decision was not to follow consensus. what is your non-consensus trade? nonconsensus on multi-trade as you leave? >> that is quite difficult to say, but i would say that in this environment, although it is very painful to hold cash, invest-- being ready to if there is a downturn, i think it is very important. haidi: that was outgoing ubs chief sergio ermotti speaking to manus cranny. up next, china defends giving covid vaccines which are still in clinical trials to hundreds

of thousands of people. this is bloomberg. ♪ so you're a small business,

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>> this is daybreak asia. hopes are rising of a stimulus deal in washington. speaker nancy pelosi saying she's hopeful of agreement this week. mitch mcconnell says the chamber will debate any stimulus package if a deal can be reached. pelosi told bloomberg that more work is needed to overcome spending issues. we all want to get an agreement because people need it and it is urgent and our economy needs it. we have one bump in the road

with the appropriations committee. but let's hope they are ready. we are starting to write the bill and then we can have the negotiations. >> in other news, google is being sued by the u.s. justice department for abusing its monopoly in search in what is seen as the most significant antitrust action against an american company in decades. google controls about 90% of the search market in the u.s. washington accuses google of using exclusive deals to smother competition from rivals. >> we think this case is deeply flawed and risks harming american consumers. our industry is marked by prices that are free or falling and rapid innovation and those are hallmarks of a competitive industry. karina: u.k. business leaders say they are unhappy and brexit was after compared to moving house. they were told that there will

be long-term benefits as company bosses were urged to prepare for the looming split. boris johnson saying that whatever happens, change is coming to the u.k. saudi crown prince mohammed bin salman is facing a criminal lawsuit over the murder of jamal khashoggi. he and 20 others are named in papers filed by khashoggi's fiance. khashoggi was killed by saudi agents in istanbul in 2018. prince mohammed denied any involvement, but accepts responsibility. 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 am karina mitchell. this is bloomberg. seeing modest upside across markets in asia. let's turn to sophie kamaruddin in hong kong for the latest. sophie: stocks are higher in

topixled by japan's adding more than 1%. u.s. futures are rising amid stimulus hopes. the kospi extending gains with the latest exports data providing some impetus with the korean won building on gains. to drive some&a market moves. furniture retailer gaining ground this morning as the company says it is considering a takeover bid for -- which is gaining ground, and we have this dcm, the hardware store owner. shares under pressure this morning. a focus as they open in hong kong. this on a restructuring plan that will see 8500 jobs lost. we did see a drop-off in its 2023 bond.

we did see that recover somewhat from april. haidi: all right. coronavirus cases are surging across the u.s. and in europe. about reneweded lockdowns. more than a million people have succumbed reportedly to the virus. china is having to defend its decision to give its experimental treatment to hundreds of thousands of people. for more on this, let's cross to omar brian. this criticism has been because of the emergency use program for vaccines that are still very much in trial. >> that is right. china gave emergency use authorization to a couple of vaccines run by china national and one of thees

global front runners in july. that was meant to be directed at frontline medical workers, staff at the borders, quite similar to those organizations in other countries. since then it has been widened. employees of state owned enterprises, particularly those looking to go overseas. we are also seeing students being considered to be offered the vaccine and a couple cities in china opening it up to general use. that has created some criticism there. china responded to that yesterday. they said that, number one, there is still a risk of covid flaring in china again even though they basically eliminated the virus, and also, they haven't seen any significant

adverse events among any of these people and in the clinical trials. latest whenus the it comes to the virus cases in asia. we have seen some case numbers easing in india and perhaps more optimism in singapore as well. >> it is an interesting take. hard to tell if this is the start of a trend, maybe a pivot in the way they are testing or a change in the way they are counting cases. but they have been going down. we are talking about an increase a dayund 47,000, 50,000 in cases, but that is down from over 100,000 a couple weeks ago. the country is about to enter into a festival period where there are a lot of gatherings. concern the numbers

could go back up again. haidi:, o'brien there. confirms it pacific will cut thousands of jobs and close its dragon brand. we discussed the implications. this is bloomberg. ♪

haidi: cathay pacific says it is

cutting 8500 jobs and shedding its dragon brand after cathay boosted the announcement of a travel bubble plan between hong kong and singapore. our next guest says airlines can't be too confident. brendan is an analyst. we talk about cathay every time we get you on. does this move the needle at all? >> first of all, with the job cuts, they were inevitable. cathay pacific has been in crisis mode for like a year and a half. in addition to this, they had covid earlier. so it is amazing that they've been able to not have job cuts so far. 20% to 30% is kind of a normal number. it is not surprising that this happened this morning. they also announced the elimination of the dragon brand.

it makes a lot of sense to go forward with that now. so they can move on now and focus on better things, like hopefully the start of the recovery. become leaner and more efficient in the meantime. haidi: that sounds like you expect more restructuring to come. in terms of this hong kong singapore travel bubble, the numbers are not exactly game changing. are game changing relative to the traffic for cathay pacific and hong kong. atse airports are going 100,000 passengers a month at the moment. going, if it brings beut demand, it could

significant. -- bubblespicture throughout the region would help .mprove their transit traffic it is not going to be a huge recovery until there is a vaccination, but we can see traffic go up 20 to 30%. that would be the hope. haidi: cathay saying the restructuring will cut monthly cash burn in 2021. how much liquidity do they have left given that we don't know when international demand will return to normal? they did a financial restructuring with the government coming in. cathay pacific and singapore airlines are the best position financially right now. positionin a better

than most of the airlines, particularly in south east asia. they are really battling it out to avoid liquidation or bankruptcy. i think too much focus is on cathay and singapore when the long-term position is strong and they have what it takes to weather the storm. shery: here's a sort of estimate when it comes to the demand levels for international travel. take a listen for us. >> frankly speaking, we think that it will take until 2024 to get back to 2019 levels for international travel. domestic travel will bounce back sooner. shery: 2024 for international travel.

how many airlines will remain in business until then and how much more consolidation could we see? >> i've been saying for a while now, that was kind of -- [indiscernible] i agree. 2024 going to take until for a full recovery. domestic is starting to recover but it is a gradual thing. patterns will have changed and it will take some time for the airlines to recover. they are restructuring now. that is why you see this job cut at cathay. even when there hopefully is a recovery and a vaccination, it is not just going to go back to pre-covid levels. you can't hang onto that capacity. from a financial perspective, the issue is that they are adding a lot of debt and it is going to take a long time to pay back the debt.

other companies around the airlines are going to start getting more impacted. but depending on the government, i don't think we will see that many bankruptcies. i think the last time we spoke we talked about qantas as being one of the best positioned because of strong domestic business. that has taken a beating with the lockdowns and closure of borders. are you optimistic that they will come out once we get domestic borders reopened? underperforming compared to other nations. it should have been a lot better. victoria, there's not enough domestic travel because of the border closures. so you only have that limited travel.

it is very limited domestic travel. i think there's some hopeful signs that some of those domestic borders like tasmania and queensland and south australia is also opening up. that is going to improve the situation. upryone else should open hopefully by the end of the year. morelso we have encouraging talk from australia about potentially a two way bubble with new zealand and may be as well. i see some opening up rather than waiting until the middle of next year. that is encouraging but it is seenand it remains to be if it gets implemented or not. they make it sound like it is going to open up, then they turn around and don't open up.

let's be cautiously optimistic that some airlines are going to have good news in the months ahead. thank you so much for joining us. data platform blacked by jb.com and walmart has seen shares surge over 100% since its nasdaq debut in june. it pushed consumers to opt for online shopping. founder and ceo philip spoke with bloomberg's tom mackenzie in beijing. >> everybody knows the covid major thing in china. this has served as the accelerator for the business. people tend to spend more time at home.

people want to buy groceries and cook at home. tom: you say you've seen a strong pickup in demand as a result of the pandemic. how sticky is that increased demand, or does it start to ease off as people get back to a sense of life? >> this epidemic is an accelerator but even before this, we had been growing fast. i think there are a few key reasons. we are generating values for retailers and for consumers. now consider us as a major, if not the largest growth driver for their business. level, there'sro a lot of focus on china's consumer. of how strongense the consumer is now? is it starting to rebound and will it be sustainable? >> one of the key trends we

observe is the lower tier cities growing really fast. historically, most other people doing business our shanghai or beijing. but now, we are covering affiliates. the growth from lower tier cities is far ahead of the tier one cities. people are enjoying a much lower rental cost and their living cost is relatively low. i think the buying power from the lower tier cities is a major push for the entire retail. tom: let me shift the focus to competition now. it is a very competitive space. how do you ensure that you build a moat around the business? what do you bring to the e-commerce sector that makes you keep that competition at bay? >> we have a very unique

positioning. we never compete with them. we don't take any inventory in any way. probably the only platform in china doing this. each one of them, they have huge first party business. tom: what are your expansion plans? what are your priorities? all, the geographic special. lower tier cities are important. there are thousands of cities we need to do well. that is number one. number two is a category extension. we start off with a supermarket. supermarkets are the single largest sector in off-line business. that is why we start with that.

and also the most difficult one. the inventory, the promotion, there are a lot of things to deal with. timeframe forhe making this business profitable? how much pressure are you under to turn things around? very have been showing a solid track record in terms of improving profitability and efficiency over the last few years. as you can see from our financial reports, like profitability related matrix has been going very quickly. we are now getting much pressure from investors on this. people really have confidence. at the same time, we are seeing , getting to the micro commerce and on-demand retail of the future.

it is time to really grow the business. haidi: that was philip speaking with bloomberg markets coanchor tom mackenzie. coming up next on daybreak asia, the largest mobile provider sees profit for the first time this year. we are breaking down those earnings from china mobile next. this is bloomberg. ♪

haidi: a quick check of the latest headlines. reported a 16% gain in revenue last quarter in signs they may be reviving in india after unprecedented contraction. revenue came in at $1.5 billion. the revival seen as being helped along by good monsoon rains. u.s. fashion chain gap reviewing options for its business in europe that could close all company operated stores in the united kingdom, france, italy, and ireland. the closures could come in the second quarter of next year. amazon will let corporate staff work from home through at least june of next year as covid cases surge across the united states. aree who can work remotely welcome to do so. however, amazon's warehouse

workers continue to clock in at facilities around the country, stirring labor unrest. mobile quarterly profit rose for the first time this year on 5g subscriber and in structure gains. aftercome inched higher thousand 5gof 350 stations this year. a bloomberg intelligence analyst is on the line. those 5geen them gain subscriber is much faster than expected. >> [inaudible]

haidi: all right, bloomberg intelligence. before we handed over to bloomberg markets china open, let's look around the region to see how markets are trading. optimism flying pretty high as we get hopes after nancy pelosi saying that we could still see a stimulus deal in the u.s. before the election and saying that it would be a bigger deal and one ast would be retroactive

negotiations continue to try and close that gap between what the two sides one. seeing just moderate upside when it comes to trading here in australia. momentumnd lacking for at the moment. shery: take a look at futures. we are seeing gains for u.s. futures by half a percent. we saw u.s. stocks finishing higher. still a choppy session given that we don't have a stimulus deal. taiwan futures looking higher. the taiwan dollar climbed after the central bank can get stronger. we are seeing the offshore yuan at the strongest level since july of 2018. we are watching for the open in china. still ahead, a closer look at kathy's restructuring with international transport and

analyst. we will also be speaking with hong kong's tourism board executive director. this is bloomberg. ♪ are you frustrated with your weight and health?

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now it's your turn 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. tom: is 9:00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." i am tom mackenzie. david: and i'm david ingalls. we are counting down to the session. , we havecific finally details on this plan. cutting more than 8000 jobs and axing