free coupons to help you save up to 80% on your prescriptions. - wow, i had no idea. - [announcer] goodrx, stop paying too much for your prescriptions. ♪ >> welcome to daybreak: asia. i'm shery ahn from bloomberg's headquarters in new york. >> i'm haidi stroud-watts in sydney were markets have opened for trade. uncertainks facing an start on concerns the rally has outpaced prospects for economic rebound. a text light on wall street offsetting gains in energy and industrials. ground as china tightens scrutiny of internet giants.

amazon falling on new antitrust complaints from the european union. investors are still optimistic over a covid vaccine. there is a new warning about the pandemic's economic impact. we hear from the dallas fed president's robert kaplan. shery: we are getting the latest jobless rate for the month of october in south korea. coming in at 4.2 percent. higher than the previous month. we have seen a recovery in the south korean economy. the services sector still remains pretty weak given the demand stalling in the korean economy because of the pandemic. 421,000 jobs were removed in october from a year earlier. we do have the october jobless rate coming in at 4.2%, missing expectations. haidi: let's take a look at markets. we are starting to see at least

a bit of a fading in the rotation of vaccine optimism. this as we start to weigh concerns about distribution access. we are seeing in the first few minutes of stock trading, a quarter of 1% higher. new zealand in focus. fednch closer to the rbnz decision. no change expected when it comes to the key rate. could be a set up for negative rate as well as stimulus for the lending programs. make a two to five still pretty positive. for tens of 1% for futures traded in chicago. the three biggest lender is likely to stay on, for the profitability goes. when it comes to u.s. futures, a quarter of 1% higher after we saw tech stocks continuing to lead those declines that outpaced the gains we otherwise so in energy and industrials. lots of market pricing has been

on developments in the vaccine front. emergency approval of an experimental shot from pfizer and biotech and may come in the next week or so. that is according to the top u.s. infectious diseases expert. dr. fauci has called this vaccine extraordinary. let's bring in our opinion columnist. is this an optimistic timeline we are looking at? >> in terms of emergency use authorization, i would save probably. pfizer still has to collect data and put together an authorization package with the fda. all of that takes a little bit of time she'd given the strength of the results and -- bit of time. given the strength of results and lack of safety signals so far, i would say emergency authorization is not too far in

the future. you have to have some kind of caution about exactly what that means in terms of the availability of the vaccine and the impact on the pandemic. by the end of the year, the two companies expect to have 50 million doses worldwide. that is only enough vaccine for 25 million people because it is a two ocean shot -- two dose shot. it is going to be limited worldwide for some time to come as manufacturing ramps up. precaution about economic and public health impact even though the news is very good. shery: what is happening in brazil? we have the halls of the vaccine trials and we have already seen the feud with the president. how much of this is political at how much is to do with real safety concerns? >> that is something we simply do not know yet.

it could be this is an isolated or non-vaccine related event and the trial will be able to resume relatively quickly within a matter of weeks. there is precedent for that in the united states with johnson and johnson and astrazeneca's vaccines. we do not have enough information to be able to judge that yet. haidi: in the meantime, we are getting some more studies and modeling as to where we see the most vulnerability in public gatherings. there is some good news and bad news. the good news would be that may be a full lockdown is not necessary? is somethingy that that has sort of been -- there has been stronger evidence of that over time. the coronavirus tends to spread through super spreading events. places where a lot of people gather and doors in -- gather in

doors in close proximity without masks. things like restaurants and all those kinds of things. , at aing to keep in mind certain point if you have enough spread in the community, it stops being those areas where the virus spreads. it ends pup being in people's homes because they go home while infected and infect those they live with. while more targeted measures work up to a point, they have to be instituted early and stuck to otherwise you get to a level of community spread that makes anything but broader measures much less effective. shery: great to have you on. he is our bloomberg opinion columnist. let's get to karina mitchell with the first word headlines. karina: joe biden saying president trump's refusal to concede the election is a national embarrassment and he has pricing on with transition plans as the white house and

republicans continue to challenge the result. attorney general william barr has authorized a justice department investigation into voting irregularities although he does acknowledge there is no conclusive evidence. senate republicans working to avoid a government shutdown, releasing 12 bills to provide funding through next september. top democrats object to the proposals due to the lack of emergency funding to fight covid-19. the current stopgap funding program expires on december 1. the european union has clinched a deal on long-term spending plans, moving closer to a landmark budget and stimulus of $2 with the equivalent trillion. the european commission says the plan will add 2% to economic output. used his first call

with boris johnson to warn against any brexit compromise. he reaffirmed his support for the agreement. conning street officials promised u.k. will uphold the deal. unlike president trump, biden has always been against the u.k. exiting the european union. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. still ahead, the outlook for markets. will be asking why [indiscernible] we'll be alive at alibaba headquarters for the latest on the world's biggest shopping extravaganza. single day is here. this is bloomberg. ♪

♪ kicks off the biggest shopping frenzy with a brisk start. billionore than 60 dollars in sales. the annual binge of hundreds of millions of people will serve as the best parameters so far of china's post pandemic recovery. tom mackenzie is that alibaba's global had quit -- is at bali -- is at alibaba's global headquarters. tom: the pandemic has led to some trends that seem to be driving the sales higher. a big driver has been the purchase of groceries, which was not something of a key factor in 2019. also people pushing the buy train tickets, plane tickets, hotels. there has been a 5g upgrade in smartphones. we have already smashed 2019

levels. you are looking at $56.3 billion in sales. that compared to 38 billion in 2019. shoppingture of this extravaganza is spread over 11 days. suggest the to chinese consumer is on -- [indiscernible] is today, the end of the shopping frenzy. it does give some sense as to the resilience of the 400 plus million middle-class post pandemic you. have to cut through some of the subsidies and promotions and the fact that people do frontload their purchases. you expect the 56 billions -- billion suggest the chinese consumer remains resilient. shery: beijing seems to be cracking down big time on tech. month.at a

what a couple of weeks for alibaba. two big hits to this company. ant group ipopo, canceled as part of the regulatory changes around finance. a massive blow for alibaba. we got additional regulations and rules that target not just alibaba but also tencent. you saw the impacts on the share price yesterday. what they are looking at our concerns around monopolistic behavior. they are trying to rein in these gigantic companies who have a large footprint. particularly about data but also with these companies forming alliances to squeeze out some of their rivals. they are concerned about a structure that many internet and technology companies use to attract foreign funds. we are being told there are additional regulations in the pipeline around internet transactions. more headwinds for alibaba but also some of its competitors.

shery: tom mackenzie on the ground from alibaba's headquarters. we will have more analysis head on singles' day with jacob cook. to the jp we speak morgan global research chair for her market outlook. how a biden presidency will play out for assets. this is bloomberg. ♪

♪ shery: jp morgan is feeling pretty good about the stock market. the bank says the s&p 500 will surpass its 36 hundred price target before the end of the year. 4000 byreach 2021. joining us for this and other market calls, jp morgan's chair of global research, joyce chan.

great to have you with us. tell us about what is driving your optimism? joyce: this is one of the best backdrops we have seen for the equity markets. the trade wars, which had been an overhang on the market for two years, that fear has gone away. we have good news on the vaccine on the horizon. the election out of the way. you still have a tremendous amount of monetary and fiscal support that remains in place. we do think the equity market here is going higher. we think rotation into value has started. we have taken apart etf's forecast to 178. looking two years out, we could see? go to 200. a little more cautious on tech. good foris as not just the u.s. but also looking at emerging markets, we have been in upgrade there. we have upgraded the rest of the emerging-market complex as well. where in emerging markets

are you seeing the potential gains other than china? that in aare seeing number of the countries that have underperformed in latin america where there have been more concerns there is value there. mexico has also come into focus because of the usmca and a sense that you're going to have a greater predictability of policy. you will not have as much trade tension. there is definitely value there. emerging markets have really lagged. when we take a look at the overall equity risk premium that has been placed, just looking at this minus the bond yield, you are still at 5.3%. multiple the valuations they are at overall. in this kind of low yield environment, there is still a lot of traction for equities and for broadening the leadership

given the bifurcation we saw earlier. have --ou say you are you pausing over the regulatory concerns? joyce: i think you see china has what does look like a v-shaped growth momentum going on. at 2.5%china's growth this year. it is the only country that has positive growth. what we have seen is the export sector has been very strong. we remain comfortable. the currency will continue to appreciate and go to 6.25. i would not take the overweight off at this point. complex the rest of the could benefit more and that that you havese cleared up some of the questions on the foreign policy quiet -- policy side. you will have more of a approach

that looks at multilateral processes, does not have as much unpredictability as we have seen in the past. less isolationist approach. the continued strength in the yuan, we have seen eight out of the past nine sessions seeing strong gains. does that extend to being the anchor for the rest of asia ems, particularly as you couple that with a successful track record of managing the virus in this part of the world? joyce: asia has not suffered the kind of second wave we are seeing throughout europe. we have taken the european growth forecast down to a 9% contraction in the fourth quarter. asia has been able to whether covid-19.weather the the benefits from the proximity

to china and the trade relationship they have with china as well. we are comfortable asia will continue to differentiate in this environment. we have seen that on the effects side and we think it will continue on the equity side as well. haidi: appreciate your time . after we saw the burst of good news in the fight against the coronavirus, eli lilly chairman david ricks spoke about why different treatments may be necessary. >> we are studying what we call passive immunization in setting -- in a setting where you are trying to prevent spread. it is similar to vaccination in a way. when you get a vaccine, we introduce a modified version of a part of a virus. your body recognizes that as

foreign and downs its own antibody response. what we are doing is we are giving you the antibody response of someone else trying to getting sake. it is not approved -- to getting sake. it is not approved. we do not have the data yet. if we look at other viruses like ebola, this was the setting where these antibodies made the difference. in the u.s. and around the world, elderly patients are at the highest risk. this would be an important positive event that occurred. >> to build on what tom is discussing, we are trying to asked the question of whether we need a multipronged approach, not just the announcement we heard from pfizer yesterday but also couple many what you are doing as well. yesterday out to us is the storage of the mrna and how difficult it is to store at freezing cold temperatures. can you speaking -- can you speak to that? how difficult it will be to distribute something like that

widely and everywhere. messenger rna vaccines, they are fragile molecules, so they need to be held at a very low temperature. that will likely -- i do not think that is going to be a major barrier once this is broadly available in developed markets with advanced reticle systems. where it becomes a problem is where refrigeration and available capacity in developing countries is going to be much tougher and will take longer. that is why we have two of the leading 10 vaccines are using this technology. eight are not and likely will not have the for duration constrictions. i suspect some of those will work as well. we will likely end up with multiple vaccines. in the meantime, none of them will work when you percent of the time. we will still need medicines like our antibody therapy to help those that will still get

sick, hopefully at a much lower rate as we approach something and youd immunity will still have endemic disease. they can go together. together, this is in the last 48 hours -- we have two important developments in the fight against covid-19. the future is looking more certain and brighter. >> there are some practical concerns as all of the pharmaceutical companies try to ramp up production. issues as the pandemic worsens, the idea that all of these pharmaceutical companies are trying to go for the same thing and probably sourcing some of the same substances as well as using some of the same staffers. how well can you ramp up production of the antibody therapies to meet demand in the next couple of months? >> i would not worry so much about that competition phase

where we are competing shared once it is clear there are winners, you will see the industry come together. it has already occurred in the antibody space. we have teamed up with amgen and the largest contact manufacturing organizations samsung and fuji so build that supply base. i do not think we are wasting material by competing in that way. antibodies are complicated to make. one of the most complicated medicines we make. we usually reserve them for severe disease. here, we are talking about treating millions of people with these antibodies. they will strain that system and we will have scarcity. that is why the fda when they approved this asked doctors to use it in the highest risk patients. eli lilly chairman and ceo dave ricks speaking to

bloombergquint here is just a bloomberg. -- speaking to bloomberg. -- debt to debt skills sales following optimistic claims about vaccines. for spectrumarked costs and repayment of existing obligations. america's largest carrier needs more airwaves to keep up with demand and is pouring billions of dollars to 5g expansion. american airlines is said to have price and offering of $500 million in common stock at 13 bucks a share as it looks to raise cash amid the coronavirus pandemic. the carrier is selling over 38 million shares. has surged this week on claims of a vaccine breakthrough. is planning as

return to jfk international after an absence of five years. the new york airport operates under federal rules require airlines to obtain arrival and departure slots. international carriers abandon there's as the coronavirus hammered travel demand. in italian payments processor is the to be at a deal chain two have -- at a deal. the deal could complete this week. they have been expanding through acquisitions, turning it into one of europe' biggest payment firmss. up next, joe moves forward with transition plans even as president trump refuses to concede and republicans continue to challenge the election results. we will have the latest from washington. this is bloomberg. ♪

♪ haidi: let's take a look at the latest economic indicators coming out of australia. we're looking at consumer confidence numbers. confidence index rising -- 107.7.we asked we have had the announcements of the opening of borders between new south wales and victoria. melbourne comes under the listing of the restrictive hardluck town and has been in for a number of months. we are starting to see consumer recovery going and said the

christmas shopping -- going into the smith holiday -- going into the christmas shopping holiday. there are some analysts saying the weakness we have seen in the u.s. dollar may have been priced in the markets and we may not see that continued dissent into an outright bearish scenario. let's take a look at the set up when it comes to the rest of the trading session. shery: take a look at the asx 200. it is already at a march high. we have every sector in the green. real estate and energy leading the gains. kiwi stocks continuing to trend higher. a record high again for kiwi stocks. we are expecting the rbnz to keep its policy rate unchanged. when it comes to japanese futures, pointing to gains at the open. this after the nikkei closed again at the highest level since november, 1991.

it looks pretty positive u.s. futures gaining ground after stocks here on wall street finished mixed. rotation on of tech. karina: there figures on the pandemic -- new figures in the pandemic show the u.s. reporting 140 2000 cases on monday as covid-19 makes a return to cases across the country. metropolitan areas are reporting record new cases. france recorded its biggest mortality rate since mid april while hungry as making the wearing of masks mandatory to the u.s. is ramping up tensions with china again. mike pompeo used his harshest rhetoric so far against chinese leaders. pompeo courted former president ronald reagan to predict the

eventual end of one party rule in china. alibaba has kicked off the world's biggest shopping spree. it will gauge the strength of china's post virus recovery. an extra buying window earlier this month. alibaba quickly passed 2019's record total. ghosn nissan boss carlos has entered a legal battle against the extradition of two ..s. men to japan what he could face calls human rights abuses in japan. the declaration is going for its first public -- global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries.

i'm karina mitchell. this is bloomberg. joe is calling president trump's refusal to concede the election and embarrassment and he vowed to go forward with the transition of power regardless of republican efforts to challenge the results. >> we are already beginning the transition. we are well underway. the ability for the administration in any way by failure to recognize our win does not change the dynamic at all and what we are able to do. haidi: let's get the latest developments in washington. our government reporter is there with the latest. the transition of power question is starting to have an impact on the biden team. what is the handling of this? >> absolutely. biden declared his victory on

saturday, the government agency that needs to begin the transition has not yet approved that biden has won the election. that means his team cannot start getting settled in. did maine's funding is locked up and it means they are not getting information that most presidential teams would begin to get at this point. the biden campaign is still going forward. they are naming advisors for top roles. they are speaking with foreign leaders. the fact of the matter is that the official transition at the federal level is not yet underway. they: what does it mean for agenda going forward? before thet 70 days january 20 inauguration day. how much will this hamper president-elect biden and what happens with the lawsuits? biden the good news is can go forward with a lot of his policy positions, putting his

people in place and talking three things. he does have the authority of someone who is speaking as the president-elect. we are looking at -- trump has filed lawsuits and a number of states. several of those have already been dismissed. of the lawsuits that have been filed so far, none of them have the power to overturn the election. todi: give us a snapshot as what deadlines we are looking to. you say the official certification for the transition to start has not begun yet. when does that need to happen? the people that are waiting for the white house to have to move on something, what are the dates you are looking at? this point --s at if you go back to the 2000 when there was that contested election result between george bush and al gore, that transition did not get started until later. it is not like we have never

experienced something like this before. at this point, one of the things we are keeping a close eye on is how republicans are reacting to things and how they are reacting to trump claiming he needs to go through the court. attorney general bill barr has authorized the justice department to open up inquiries but he has also admitted there is no conclusive evidence for widespread fraud in the election. shery: we will be watching that closely. it really would affect policymaking when it comes to the gop and white house cooperating. emory wilkins in washington. -- emily williams in washington. opera kaplan says he is optimistic about u.s. growth over the next two quarters things could be curtailed by covid-19's resurgence across much of the company -- the country. priorityhe highest about stimulus should be unemployment aid. >> we have a severe headwind we

are dealing with. on the positive side, we have been rebuilding since may. even with resurgence of the virus, mobility and engagement is up substantially from april. even though resurgence is back, here is the issue. people can power through this until the local health care, the local hospitals are overwhelmed. that has happened in el paso. of happening in other cities in the country where people do not want a lockdown for the local governments do not have a choice to administer like towns because they are worried about the health care system. i do worry that is a significant health care risk if this resurgence keeps escalating. we are headed in the wrong direction. over the next two quarters, i am optimistic we are going to grow at very strong rates.

a real downside over the next two quarters is, does the resurgence get so bad it forces like towns because of overwhelmed health care systems -- forces lockdowns because of overwhelmed health care systems? >> i thought our team at bloomberg had the strongest day with experts on the pandemic and i did make note of el paso a number of days or weeks ago and the critical situation there. for you and your team at the dallas fed, it is it a -- is it a question of days, weeks or strengthfore we find in our hospital care? .> it is probably weeks it may not be months. we track mobility and engagement at the dallas fed in every city in the united states. we are watching wisconsin. we have noticed mobility engagement is rolling over.

people are pulling back. this is something we have got to mask, but this is why wearing, social distancing, health care protocols is essential now. we found when people do observe that in a widespread way, resurgence mutes. we are watching hospitalizations all through the country and they are going in the wrong direction. >> i am going to say this word with a broad perspective. with the history you had at harvard business school, our nation's productivity. our is your study of nation's productivity through this pandemic and what do see over the next two quarters? >> it has been bifurcated by educational attainment. if you have a college education or better, you have been able to work remotely like we are right now and you are able to be surprisingly productive. if you have a high supply education or less, it is likely

you do not have an option to work remotely. it is the nature of your job is person-to-person. you are more likely to of lost income. you almost certainly have lost productivity. if you do not have access to wi-fi, which some areas of the country do not, productivity is really hurt. it is a tale of two groups. it is a real challenge we are going to have to work on to work our way out of this pandemic . >> to work our way out of the pandemic will take stimulus. what is the kaplan use of stimulus? is it for income substitution or replacement? maybe more like what we see in the united kingdom with governor bailey or is there a different calculus for america in providing assistance? -- for thoserts

who lost their jobs or cannot get enough hours, unemployment benefits, state and federal, have in a central to making ends meet. our own sense and we are watching this carefully and we do it through bank balances, our sense is the savings from that fiscal stimulus is starting to run out. we do not know exactly when it will run out. when it does, incomes will start to drop and consumer spending will start to weaken. it starts with -- and probably the highest priority is some continuation at some level of the unemployment benefits. that was the dallas fed president speaking to tom keene. winng up next, joe biden's signaled a policy shift in energy. we will be hearing about the impact on the renewable sector. this is bloomberg. ♪

♪ to thethe response threat of climate change is one of the starkest contrasts between donald trump and joe biden. biden may have the chance to see through on his pledge to reassert american leadership on climate change. president andthe ceo of schneider electric north america. wonderful to have you with us on

bloomberg tv. what are the policy priorities? what are the first policy actions you would want to see from a blighted administration -- a biden administration? >> the president-elect has a 2 trillion climate plan he announced in july. it is focused on 100% clean energy by 2050. i think more importantly, illuminating the electric grid emission by 2035. that is going to create a lot of opportunity to digitize our energy. we like his plan because it is in line with our own corporate mission and values and goals. youi: what is the impact see on this policy shift, which is expected to be seismic. not just on business but global energy supply chains. the overall industry. >> i think it is a great question and we see these

policies actually as accelerating what we believe is already a trend and many of our customers asking us to help them with their sustainability roadmap. how to make their energy more efficient, more digital, margie carbonized, more decentralized. these are trends that were happening before this administration change. . they are going to accelerate now with this administration change. shery: how much of your customers have changed with his administration and the global pandemic because we also have the trade war with china as well. >> i think covid has been an accelerator in all things digital. andhink about supply chains supply chains around the world have been severely disrupted. it is from a couple decades of optimization at every level. at the labor level, at the factory footprint level and even

at the inventory level. these blocks on events -- these black swan events like covid are disruptive. it is one of the reasons we are making an announcement to do some reassuring. be digitaloing to lighthouse factories that use our solutions, our plant solutions to help data be visualized on the factory floor and drive efficiencies not only toenergy usage but time repair an operational maintenance and all of things that help us make our factories actually cost efficient, sustainable and closer to the customer. shery: you are expected to shrink carbon emissions. ,ell us about the energy trend the key energy trends you're seeing. havest of our customers announced some kind of sustainability journey. they want to be carbon neutral

by 2030, 2040, 2050. they do not all have a roadmap to get there. are using know is we more of the earth's resources then we can manage. we can look at the climate events that are happening in north america. we have already had nine named hurricanes. we expect six more category three and above. we have had significant warming of the surface of the caribbean and the atlantic that continue to drive these events. wildfires in california. we have investment communities that want to invest in companies that are driving sustainable action plans. this has boomed businesses like our micro group businesses. solutions0 microgrid actively working in the u.s. one ofrecent example is our customers.

they built the peterbilt. they are electrifying their fleet. they realize the grid is not sufficient to charge. renewable,ting sustainable solutions for their charging infrastructure. haidi: you talk about the need for bipartisan cooperation in order for some of these goals to be met. all important is it to have global cooperation? here in australia, we are sitting in this awkward situation where we are looking at one of our biggest allies. the u.s. is taking this renewable, pro-green, tackling climate change stance, whereas our government is a big fan of coal. >> companies have been reading this initiative. i think companies will continue to lead the initiative. i think the administration -- president-elect biden, his vision is around clean energy and climate and that was one of

his platforms in being elected. not only growing jobs, advancing economic recovery of the u.s. but really protecting the climate for future generations. much forank you so joining us. she is the president and ceo of schneider electric north america. coming up next, no more intel inside. apple kicks off a new chip era with three macs in-house processors. this is bloomberg. ♪

♪ shery: we have another on the bloomberg from south korea. we are getting the latest export and endo -- and import numbers for the first 10 days of this month. versus aising 20.1% year ago. when it comes to imports, a rise of 7.8% versus a year ago. we had seen the october export numbers fall after a rebound in september. we have seen these numbers fluctuating. and it comes to the daily average number for exports, rising 12.1% for the first 10 days of this month. theseare imitations to export growth given the resurgence of the pandemic abroad in the u.s. and europe.

we have seen imports and export numbers from south korea rebounding. turn to apple. it has launched its post-intel era with three new macs that feature processors designed in-house. a new macbook air, a 13 inch macbook pro and the mac mini. give us your take on this lineup. my take is that this is a good first step for apple. they have proven they are able to launch their low end macs with their own processors. there is still a long way to go. i did not see any chip updates that blew me out of the water. nothing too exciting. this is jamming in an iphone processor into a macbook air. the real goods i think are going to come toward the end of the and year when the imac,

some of the beefier macbook pros are updated. haidi: we know the iphone is the most exciting product in the cycle, but what kind of a role do the macbooks and the laptops play in how important it is to maintain that visibility in the product line? mark: the mac is a very key product for apple. this partly the reason why people came to the apple brand initially, well before the iphone, ipad, apple watch were used. this is a computer that is used like photo editing, engineering and design. it is important they keep these macs well ahead of the game. this is their first mac chip. it is already faster than some of intel's processors.

if you imagine what the mac client is going to look like in yhree years, chances are the are going to be will head of what intel is going to be able to come out with. haidi: let's get a quick check of the latest headlines. amazon is the latest european union techtarget. a newave open investigation as to whether it unfairly favors its own products. boosted revenue in the fourth quarter by 70%. that is an uptake after the virus slump in ride-hailing. sales were under $500 million. beat expectations but still almost 50% lower. slightly better than wall

street's forecast. microsoft says core services for the online gaming network suffered losses. it has prevented users from signing in. how widespread or how serious the problem has been. using up, bnp paribas gives an outlook. the open in seoul and tokyo almost upon us. this is bloomberg. ♪ - i'm doug hirsch.

you may already know that goodrx can help you save up to 80% on your prescriptions. unfortunately, many americans can't get to a doctor right now. the good news is that for many health issues, you can see a doctor online. it's easy. just go to goodrx.com, and with a few clicks, you'll be treated by a licensed medical professional,

all from the comfort of your own home. visits are confidential and affordable. need a prescription? your doctor can send it to your pharmacy or have it mailed to you. get the healthcare you deserve at goodrx.com. >> a very good morning. asia's major markets have just opened trade. >> welcome to "daybreak asia. u.s. futures under pressure. asian stocks look steady. test on wall street. fell in new york despite a booming start as china

tightens scrutiny of its internet giant. amazon lower on antitrust complaints from the eu. we will have the latest from the vaccine as the u.s. reports record coronavirus cases. covid-19 making a return to cities across the country. >> japan and south korea coming online. let's get straight to the market action. see ifre watching to that trade can carry on or if stocks regain their mojo. we are seeing cyclical heavy topix continuing to gain ground, the nikkei also on the rise. the yen is consolidating around a three week low. let's check on south korea. we saw a surprise increase in the jobless rate. exports rising 20% year on year for the first 10 days of the month.

the kospi adding 0.4%. we are seeing the korean won under pressure, holding below 1120. we are seeing support with bond inflows increasing this week. chipmakers in focus, watching to see if there may be a shift around huawei shipments under a biden administration. later in asia, we are watching earnings. let's switch out the board. you have the asx 200 adding more than 1%. banks are tracking yields higher. commerzbank gaining ground. it is going to be paying out a dividend despite its profit falling to a seven-year low. in wellington, fresh highs. the kiwi dollar holding as we wait on the rbnz decision. watch for choppy price action. the offshore yuan this morning

trading around 6.60. jp morgan saying look will dynamics will be more important going forward. u.s. futures, we are seeing s&p and nasdaq futures edge lower this morning. some downside coming through after the tech selloff we saw on wall street. alibaba ahead of single day. we will see if there is more upside for u.s. yield. high,ound a two month just around $41.58 this morning. saying there will be speed bumps for oil. joining us is the head of asian-pacific equity research at -- you are feeling good about your top conditions. mode emergingtion

markets are setting up for only driving more interest in these markets? >> clearly. we think there are two main that are gradually getting behind us. be u.s. election could called the goldilocks scenario. tax cuts would unlikely to be reversed. we may have more calm rhetoric as far as geopolitical and trade negotiations are concerned. both of these points are positive for emerging markets. we are seeing very strong inflows over the past few days. we think that is likely to continue. driverse, one important is the depreciation of the u.s. dollar. that would have been even stronger if a large fiscal

stimulus in the u.s. were to come about. that seems unlikely. at the same time, we think most of the drivers are in favor of emerging markets. we also point out return on equities is improving and outstripping global market -- rather market are eased. low-cost and of increasing would stand in good stead as far as equities are concerned. first,ng a look at china your top calls are china and india. since its creation in 1995, a time we continue to see the yuan up for eight of the nine pest sessions. heating a fear of over when it comes to chinese assets? >> not yet.

maybeinese equity market at its highest. in terms of valuation, still at a discount. it is possibly slightly higher than the long-term averages. at the same time, in most sectors, that is not really alarming. expensive evaluations are concentrated around a few sections like chinese internet. at the same time, there are sectors which are undervalued. if one looks at chinese industrial materials, financials, they clearly counterbalance the relatively high valuations. >> is undervaluation rationale behind why you are overweight india at a time when it has taken a huge hit from the pandemic? >> right.

the india call we have, that is the contrary and one. not sooverweight india much from the perspective of the economics, because the indian economic has really suffered from the pandemic explosion, but it is more to do with stock selection. context, ite indian is relatively easy to identify stocks which are likely to be out performers and what we call whichr compounder's generate excess return on equity over a long timeframe. there are quite a few sectors in india which are relatively uncorrelated, whether domestic economic turmoil the country is facing, i.t. is one example that is a large sector in india. it is essentially a stock specific call we have in india. it adds up to a pretty significant rate.

>> let me finish on south korea because we are seeing the kospi at a 2018 hi. huge inflows of money into the korean won as well. what do you think of the market right now? favorable bias. we think the largest sector in relatively well moving forward. we see a clear recovery in demand for memory. predominantly because of the ai and data centers which are necessary to drive applications. we are also seeing earnings upgrades. what we call upward earnings inflections in korean financials, korean industrials, and we think therefore this recovery we are seeing could drive the korean market a little higher.

asis still not as expensive some of the other tech heavy markets. for example, if one compares the korean market and the taiwanese market over the long-term average valuations, the korean market could still be relatively cheaper despite the outperformance that has had. >> manishi raychaudhuri, nice having your thoughts. take a quick look at how softbank is trading right now. we are seeing falls of more than 3%. extending declines from yesterday. selloffan ongoing tech not only in the u.s. but perhaps asia as well. softbank specifically already a bit controversial. stock and options trading program is growing fresh fire ire fromstors -- investors. we are seeing softbank taking a hit for a second day.

now, karina mitchell with the first word headlines. >> new details on the pandemic. the latest data show the u.s. reporting more than 142,000 cases on monday as covid-19 makes a return to cities across the country. two months ago the virus was mainly a rural problem. metropolitan areas are reporting record new cases. france reported its biggest mortality rate since april while hungary is making the wearing of masks in public mandatory. to the senate, republicans are moving to avoid a government shutdown, releasing 12 bills to provide funding next september. mitch mcconnell says keeping the government afloat with full-year spending bills is a priority in the postelection session. top democrats objected to the proposals due to the lack of emergency funding to fight covid-19. the current stopgap funding expires december 1. president-elect joe biden is calling president trump's refusal to concede the election

a national embarrassment. the white house and republicans continue to challenge the result. william barr has authorized investigation into potential voting irregularities, though he does acknowledge there is no evidence. the european union has pledged a deal on long-term spending plans moving closer to a landmark budget and stimulus accord worth the equivalent of $2 trillion. policymakers are under pressure for a package for next year under surging coronavirus numbers and the worst recession in its history. the european commission says the plan will add 2% economic output. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. onstill ahead, analysis alibaba's single day sales as well as threshed challenges facing the company.

we will also talk about the e-commerce sector that could still outperform. this is bloomberg. ♪

>> china sets up a task force to reign and its most powerful .ompanies, dealing a blow alibaba is one of those giants in the crosshairs, plunging despite a booming start to its single day. our china markets coanchor is inside the alibaba global headquarters. a lot at stake here in the single day event alibaba target and beijing cracking down on big tech. >> absolutely. we are at their headquarters primarily to talk about single

day, and we need to address the regulatory changes outlined yesterday by china's government. the message is very clear. china's government is saying to big tech companies, alibaba, but also tencent, and others, they are going to rein in their power. china's government has been hands-off. that dynamic appears to be changing. new regulations address concerns about data sharing amongst companies, about subsidies, about forming alliances, but also a structure technology and internet company is used to raise funds from overseas and list in the u.s.. it comes on the back of this change in regulations around finance, which led to the scrapping of what would have been the world's biggest ipo. the regulatory hurdles are very clear. investors in the companies themselves will be trying to get

their heads around what this means in terms of their growth potential. >> in the meantime let us take a breakingexpect another year for singles' day. we see post pandemic revenge spending going on. absolutely. we talk about the regulatory hurdles. this is a success for alibaba in terms of the numbers we are seeing today. billion. it has not come to a close. the period has been extended over 11 days. nonetheless, there are real key drivers leading to momentum in sales. an appetite among china's consumers for bookings of hotels, electronic products as a result of the 5g upgrade for phones. it is a very consequential for thosextravaganza

based in countries where the economy has not picked up. for the additional 2600 new brands added to the spread this year, it is crucially important in the chinese market. for economists and investors it is important to get a sense of the health of china's consumer. the numbers we are looking at suggest things are resilient, the chinese consumer is relatively bullish. >> let me turn to geopolitics. the trump administration has about two months left in office. secretary pompeo keeps lashing out at china. what is he saying? yes, strong words. the harshest rhetoric from mark -- from mike pompeo saying we are not done with china yet even as they count down to a transition that of course the trump administration is trying to push back or argue against.

china'sescribed communist party as being a marxist-leninist monster. he said it was an antithesis to freedom and he called for the end of one-party rule in china. this comes after additional sanctions by the u.s. over what they described as the undermining about tommy in hong kong. pompeo's message has been undermined by the fact he is part of an administration in the u.s. that is without much substance, it seems, challenging the results of their own election, many would argue trying to undermine or actively undermining a key pillar of u.s. democracy. nonetheless it is a reminder we might get more action on china from this administration before the transition that takes place january 20. thatm mackenzie who is alibaba hq on singles' day. henry fernandez has shared his view on how biden's

administration is likely to shift u.s. relations in china. fernandez spoke to bloomberg about the president-elect. initially, weck are fearful of a biden administration because of the potential for the buildup around the world to put pressure on but i think there are positive changes coming from the biden administration in style and substance. pressure campaign will be less public. and hyperbolic. neededng china has because the pressure it puts on its own leaders in which the conservative and nationalistic elements of society begin to surface even more so. i think this is a better

probability of change. of course there will be a lot of substance. the emphasis will be more political, economic, and human rights issues, less on financial and capital market issues. therefore, hopefully we can avert a capital war with china which would have been devastating. >> how can we expect resident givento continue on trade the most recent history and given how china thinks -- seems to be exerting more pressure over hong kong, over its capital -- with itsch lockdown on ipo, for example. >> china understands their position in the world economy, with global capital markets, and therefore, it is trying to

squish its way into the leadership of the world and the u.s. is trying to resist that. the chinese are also very pragmatic people. can noderstand they longer claim they are an emerging market and that they without opening up their own markets and their own currency and their own bond markets. i think we already are seeing major steps in that direction. some people might say it was because of the trump pressure. it could be. china itself recognizes in order to have that leadership, politically and financially, they need to become onenness and of the largest countries in the world in these markets. i think that will continue and it could be accelerated because andhe pressure campaign

markets around the world on china. secondly, a less bombastic pressure in which issues can be solved diplomatically. >> henry, did you understand the chinaown on black mom by given it is the center of its five-year plan, it has seemed to be doing that? do you think a mood like that will discourage international investors? >> it could. regulators chinese it was and realized major lender, a major bank without all the regulatory requirements. the state-owned banks were complaining about that. ipo,it came down to the there were a lot of discussions about that. capital to put in side-by-side with lending

banks,es of state owned that came to a head. i think there will be a resolution of that. they will return to the market. but for sure, that was a disappointment. not the right way to conduct regulatory affairs. msci chairman and ceo henry fernandez. next, the promise of a vaccine become more critical as reported death tolls abound in europe and the u.s.. ♪

>> more developments on the vaccine front. fromperimental shot pfizer and beyond tech may come

in the next week according to a top u.s. infectious diseases expert, anthony fauci. michelle, what do you think of this timeline? >> dr. fauci is telling us the fda is going to move expeditiously. we are going to get safety data that is critical to find out how protective the vaccine is and how safe it is for people to get , at least in terms of the immediate side effects. once we see that, the fda is likely to call an emergency youth authorization, then the cdc will have to weigh and. we are looking at december at some point before you we would authorization and start rolling it out in december. dr. fauci has said april is when we might be looking at average americans getting the vaccine. having this conversation, we

are getting the line, the news the u.s. has reached record covid-19 hospitalizations, a number just shy of 62,000 hospitalizations in the united states. this as we see really from numbers of these new cases on monday, almost 150,000 new cases in one day. how does this potentially play into what the next few months looks like? at the same time we are getting vaccine optimism, we are getting news the likes of brazil halting the chinese vaccine. >> you are exactly right, the issue here is even if we get the vaccine anytime soon, it is going to take a while before it starts making a difference in the outbreak. when you're looking at 150,000 infections a day, you are looking at over 1000 people

dying every day, you cannot wait for that kind of -- for a difference to be made. you need social distance, wear your mask, hold on until vaccines become available. >> michelle cortez with the latest. ♪

♪ you can go your own way it's time you make the rules. so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get 5g at no extra cost. all on the most reliable network.

so choose a data option that's right for you. get 5g included and save up to $400 dollars a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile. >> the u.s. is ramping up tensions with china. the pompeo saying administration, quote, is not finished with beijing. strongest rhetoric, calling the communist party a marxist-leninist monster whose rule is authoritarian and british. he quoted ronald reagan to predict the eventual end of one-party rule in china. useddent-elect joe biden his first call with joe -- boris johnson to warn against johnson promised

the u.k. will uphold the deal. biden has always been against the u.k. leaving the european union and has their his views several times. with proposing a summit japan and kim jong-un. the head of south korea's agency has raised the issue with -- in a meeting with japanese prime minister yoshihide suga. issues on the agenda might include north korea's nuclear program and wartime forced labor. entered a legal battle against the extradition of two u.s. men to japan. a former green beret and his son are trying to avoid being sent to japan. court filings say the pair could face what he calls human rights abuses in japan. the declaration is carlos ghosn's first intervention,

though he has hinted he might help the tailors -- the taylors. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> here is how markets across asia are trading right now. we are seeing another rally for asian stocks with the nikkei continuing to gain ground. we are now at the highest level since october of 1991, a sudden succession of gains despite the fact we have a slightly stronger japanese yen. 1 -- 2018at a 20 and hi and we are seeing the one gaining ground against the u.s. dollar. the asx 200 led higher by real estate. kiwi stocks also at a record high head of that rbnz rate decision. let us actually dig deeper into the rbnz. >> we are watching the kiwi dollar as well. it hit the wall going into this

decision. the central bank is maintaining its key policy settings for now. it is also expected to start laying the groundwork for negative rates. paul, let's talk about the potential boost of lending facilities and stimulus facilities. the funding for lending programs. >> this got floated back in august for a monetary policy statement. the idea has been around for a while. an effective way to deliver more stimulus over its bond buying program. that is expecting to be held so thist this meeting, funding for lending program really laying the ground for potential negative rates. what it will do is make sure the banks can get a hold of funding and that will ensure bank lending costs get passed on. rate continues to

climb possibly approaching zero or lower. we are watching that call today as to when we might see the negative rates. been pushed out thanks to good news on the vaccine from pfizer that is pushed out to may when we could see negative rates in new zealand. >> what is the risk of new zealand's debt starting to look like japan? >> another interesting question. before the pandemic, the rbnz on 6% of new zealand's bonds. buying, it now owns 37%. it took the boj three years to get to that level. the rbnz has charged ahead. the concern is having a heavyweight player like that depresses volatility and curbs -- deters foreign investors and bank earnings as well. volatility is much greater than japan's, but it is declining. raisevernment agreed to

-- purchases to 60% of the market as well. this is an interesting situation for the rbnz. it continues to grow. >> paul allen in sydney with the latest on the rbnz. malaysia's record budget may face a tough path to approval in parliament. opposition parties are urging the finance to allocate more andy to a covid-19 fund improved social initiatives. >> the announcement has been -- and recognize the issues we face .oday

it is the largest budget ever in malaysia's history. people,support not just but also the economy. it will allow us to fight the pandemic. it is highly focused on sectors that will give the highest impact. the other point i want to talk

his own health care. we are spending a lot of money to ensure the government is willing to pay. >> an aggressive budget requires rigorous spending. are there plans to issue bonds perhaps in the dollar or young market? yen market? -- >> [inaudible] budget,look at the

[inaudible] quick the 2021 budget was announced during a very big week globally. the u.s. elections were in focus. due to the implications when it comes to trade, foreign policy, and financial markets. what could a biden presidency mean for the relationship with malaysia and southeast asia as a whole? congratulatesent in and we for his w look forward to mutual trading partners.

we are optimistic that this they could start -- this is a good start. >> we have not left the pandemic behind. what would be potential vaccine development mean when it comes to the stimulus for the budget and beyond in malaysia? >> positive news about the --cine coming through [inaudible] economies have made assumptions for growth.

this is definitely good news. we assume very strong recoveries , around 6.5% 7.5%. [inaudible] >> that was the malaysian finance minister speaking to our markets reporters sophie kamaruddin. coming up next, the world's biggest shopping binge is underway. inbaba's singles' day raked $60 billion of sales in the first 30 minutes. ♪

x alibaba kicked off old biggest shopping -- >> alibaba kicked off the world's biggest shopping binge. , great to have you with us. how much of this singles' day extravaganza and optimism is being tempered by regulatory concerns at alibaba? side, notconsumer much. we are seeing record-setting consumption across multiple platforms, not even just

alibaba. i do not think regulatory is playing into the consumer side. it might be different in the stock price. that has a lot to do with their thek -- their stake in anti-ipo. are also in the middle of a pandemic this year. >> in china we are pretty much -- what we saw with the previous shopping day this year on june 18 was massive record-setting but they did not have the retail to compete. shopping malls have been open for several months. people are going out. they are resuming behaviors. we are still going to see incredible growth between this and 11/11's previous. consumer behavior was shifted online because of the pandemic

more so, and it is not going back to the old way. this is probably not unique to thea, but i think this is first data point where a country has come out of the pandemic and with really seen people permanent shifts in behavior, not just temporary because they could not get to a shopping mall. >> such a big boost to the domestic consumption, domestic demand. what about the supply chain side ? is it going to be continued amid worsened concerns about the ability to supply that demand? >> i do not think so. toare not expecting 11/11 exceed what happened on six/18. people are all are -- people are well prepared. planning for this event starts in august. products are registered months in advance.

there is a lot of time to get prepared. -- the sales were organized as a presale. people were looking at items in shopping carts. this gave merchants time to prepare, time to pack boxes, and a good idea of what the volumes were going to be on the actual day. i think the logistic numbers really have been the story in china the last couple of years. we keep a close eye on this. we are seeing a lot of packages and movements already entered the last miles. i think it is going to hold no problem. >> beijing's new regulations to root out monopolistic behavior, that is targeting companies like alibaba, like jd.com. does that change the landscape when it comes to competition? >> it is going to be good for consumers.

it is probably a good policy overall. what has been happening with the platform is they have been restricting your ability. grants andl reward give them higher placement if they do not purchase a place in 11/11. at the end of the day, while it might be good for the platform, it is not very good for the consumer. it might hurt the stock price in general, that is going to be owed for consumption. >> can you make sense of these regulatory reform measures when it comes to curbing the anti-competitive practices? and theutely, authorities specifically are looking more from a consumer base and at consumer protection. absolutely these make a lot of sense. unfairly punishing brains because they want to expand

beyond an ecosystem, as i said, that is not good for the consumer at the end of the day. in the long run this is going to be very healthy, once the regulators do step in. >> does the international side -- for alibaba anymore? >> i think so. the growth numbers are good, but things, local side of the numbers are unbelievable. such incredible growth. , probably the larger conglomerates here, this whole year has forced some of the older more well-established consumer brands, especially in home appliance, to get online. catalyst, they are probably going to stay

there. that does not mean there has not been growth on the international side, but what has happened here is there has been a channel shift from the offline, what was traditionally off-line areas such as appliances into the online space. you probably will not see a major shift next year. that might just be a one-off boost to growth. youhat is holding true, might see percentage growth rates on the international side of the business will be higher than the local side next year, possible. -- it's possible. dayore analysis on singles' . coming up next on daybreak: asia, punched in the face. that is how microsoft describes the experience of creating a new xbox amid covid-19. ♪

>> let's get your check of the business flash headlines. verizon is selling a billion dollars of bonds amid a rush to debt sales following optimistic claims about a covid vaccine. the giant is selling debt in five parts. america's largest carrier needs more airwaves to keep up with

demand and is pouring billions of dollars into 5g expansion. apple has launched the post-intel era with its first computer using in-house chips. there are macbook air, macbook pro, and neck minis -- mac minis. the switchle said from intel would take two years, but it would allow devices to work together more efficiently and use variations of the same chips. tech --s the latest eu a new investigation into whether it unfairly favors its own products. the european commission suspects usinges of antitrust laws data from sellers that could benefit amazon's own retail arm. lyft boosted revenue in the

second quarter after the virus caused a slump in ride-hailing. sales are just under $500 million, an improvement beating expectations, but still almost 50% lower than the same time last year. revlon shares soared as the -- before agled its deadline that could lead to default and bankruptcy. the stock rose by as much as 124%, the most ever. half.onds jumped by rivals are facing off over a debt exchange that devalues the revlon note at far less than face value. the deadline is later today. the battle for video gamers is heating up.

goes onlaystation five sale thursday while microsoft just launched its new xbox. say spencer has this to about demand. >> every week we will have new consoles coming in. people can check with their retailers. we are going to be in this state for a couple months. the pandemic has really -- we have seen a surge in gaming activity, people staying at home, playing games online. these consoles are launching into unprecedented gaming demand. bloomberg's technology reporter is on-demand. what happened with the launch? >> they launched today. in january, they were asked whether. . it would affect me factoring. manufacturing -- affect

manufacturing. the challenge was on videogame development. when developers and engineers and artists develop video games, they use a wide array of different types of devices, including xbox dev kits. those are all stuck in people's offices while engineers are working from home. they had to come up with different ways to use those machines including cloud software that let workers at home connect to complicated machinery in the office. other developers on their games actually went into their offices just through hundreds of pounds of equipment in their cars and drove to their home offices. with a variety of mechanisms, they managed to gather their games, although there have been delays, most notably to their biggest launch title, halo infinite, which will not launch until next year. the playstation

5 debuts on thursday. momentum of course from the previous version. push into itsft's home turf with sony going to play out? >> my colleague wrote a piece earlier this week about microsoft focusing on japan more than they have previously. you may remember with the previous version of the console, microsoft did not even launch in japan is the same time as it did in the u.s.. this time they have a global launch and they are spending a lot more time trying to figure out how to appeal to the japanese consumer, including as we reported in our story, people familiar with japanese game studios told us microsoft had actually come calling to figure out if they could buy a japanese game studio. something that has been -- nothing has been announced on that front yet. it may occur in the future. in the meantime sony has angered some japanese gamers by seeming

to focus less on their home market then in the past. >> really appreciate your time. before we hand it over to bloomberg markets "china open," let get a look at how markets are trading right now. some robust gains in japan. the nikkei up. we are also seeing upside when it comes to trading in soul -- seoul. this is the situation in australia, 0.25% higher. continued rotation despite the text selloff overnight. mostly positivity in this part of the world. we are four minutes out from the rbnz decision. no expectation to a change in policy. a look at more stimulus and the groundwork for negative rates. kiwi stocks higher.

coming up, all the latest progress and the questions that remain on the vaccine front and all the latest on singles' day. ♪

♪ tom: is not :00 a.m. in beijing adhering hong kong. welcome to "bloomberg markets: china open," i'm m