haidi: good morning. we are counting down to asia's major arc at open. shery: welcome to daybreak asia -- our top stories this hour -- asia look set to follow wall coronavirus has fears of further lockdowns and there's the worry of a timing of a relief package in haidi: washington. president trump takes aim at china, taking aim at companies

thought to be controlled by the people's liberation army. and policymakers seem less likely to go down that route decide -- besides providing support for a long time. shery: let's take a look at how we are setting up an asian markets. looks like trending a bit lower in sydney. u.s. stocks really doing pretty taking overrallies adding to concerns about tougher lockdown measures with the existence of an effective vaccine. downside about a quarter of 1% and that market along with new zealand looking pretty overheated after the recent run of gains. continuing to push back expectations for negative rates. chicago futures moderately positive at the moment. the yen seeing a little bit of a gain but we have seen a new

daily record for coronavirus infections in japan this week. authorities hinting they could need to take stronger measures to halt the increase in the spread. s&p acted futures up by .2% sessione active cash sank as much as 1.5% overnight. shery: let's turn to our top story -- president trump signing in order banning u.s. investment in chinese firms determined to be owned or controlled by the country's military. the latest bid by the white house to ramp up pressure on beijing. tom mackenzie joins us from the chinese capital. president trump said about two months ago in the white house -- why is he doing this now? tom: we were warned by mike pompeo that there would be more action, more things coming down the pipeline and this is the latest action from the trump

administration. this is a ban on investment firm funds in the u.s. by or selling shares in 31 companies designated by the pentagon as 's military to china and intelligence services. that list includes china mobile, it includes china telecom, sinochem, just a couple of those on this list. explaining it thus -- he says the move will protect u.s. investors from inadvertently funding the people's liberation army or the intelligence agencies here in china. this ban will kick in january 11. parent of bands, the company of tiktok has successfully won a stay of execution it seems. a court in washington saying they have until december 14 to

file additional paperwork. this links the national security concerns back in august put in place that would force the sale of tiktok's u.s. assets or close the bin is down altogether. business down altogether. eventually we got walmart and oracle and tiktok setting up a plan to build out a u.s. entity but it never got the full signoff from the trump administration and lead to a november 12 the blind to selloff or force the closure and that deadline has been pushed to december 14. so the saga in the u.s. over bytedance and tiktok continues. we heard cautiously reassuring words from tencent right after they reported earnings. tom: caution is something they specialize in and they pointed out they had a more conservative

operation. we heard from the president of tencent really trying to reassure investors about this significant move about building out a framework to contain monopolistic behavior by some of china's tech giants. the president said he supports the goal of fair competition and that tencent will comply with these measures, but crucially, it was his understanding that these rules were more e-commerce and online commerce, an area not significant for tencent. these are not targeted at gaming and ad revenues, which is the big cash cow for tencent. third-quarter results were significant. they beat expectations in terms of gaming revenue which grew

45%, the fastest pace since 2017. haidi: let's get to new york with the first word headlines. chances of a stimulus package are receding as they say it will leave negotiations to republicans in congress. they may consult gop leaders but will no longer lead talks. mitch mcconnell has been even , reducing the chances of a new deal. meanwhile, china ridiculed the mass registration of pro-democracy lawmakers in hong kong, describing the move as a challenge to beijing's authority. four of their members were dismissed for being insufficiently patriotic. the uk's accusing china of breaching its commitments following the 1997 handover.

continue in london with both sides admitting serious differences still remain. the u.k. treasury wants brussels to agree to rules saying that it is regrettable the block has not shifted its position. the u.k. has unilaterally opened access to parts of its financial markets and wants to see reciprocal action from brussels before further steps are taken. 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'm karina mitchell. this is bloomberg. ahead, beijing's latest move is sparking fears for human rights in the city. we speak with the human rights china director, sophie richardson. up next, tony chris enzi joins the show with his view on positioning. ♪

shery: here's a quick check of the latest business flash headlines -- disney rose in trade after reporting a smaller than expected fourth-quarter loss. they beat estimates tanks to a huge jump in streaming subscribers and a recovery at its theme park. disney plus launched a year ago and has grown it subscribers to 74 million. he reported a loss of $.20 a share, far less than the 73 sent deficit that was forecast. palantir reported its first results going public -- since going public. they sell data analysis to governments and companies and dropped 850 $3 million compared to $140 million at the same time last year. they say their operations were more profitable when excluding stock days compensation a

boosted forecast for a year by 44%. a chinese platform defined the antitrust guidelines from beijing which -- with shares surging after reporting a rise in third-quarter revenue. the shanghai-based company over $2 sales of just billion as a shift to online shopping continues in post covid china. soaring assuries there are concerns over more fiscal stimulus dragging the 10 year back. byerfect time to be joined pimco portfolio manager. it seems that at least for today , the covid trade was back, even were facingies supply concerns. especially when you have to

factor in the potential of more fiscal stimulus measures. tony: great question and there was a lot of optimism at the start of the week from pfizer. but we would caution much of that view about the virus path is already paes -- is already priced in, which is to say most market participants are anticipating the likelihood of a vaccine rolling its way out over the next several months. it is possible because of the efficacy rate that investors pulled the timeline forward. from a baseline of march, april, when the vaccine might begin to get distributive, perhaps that has been pulled forward, but it does not change the long-term picture. the interest rate story has been quite benign and is driven by semi things, including the fiscal story, which is still to unfold because it's not known what the composition of the u.s. senate will be.

our advice would be to think of the election and vaccine news from a portfolio perspective, meaning continue to pursue a well balanced portfolio in the needn't bethere major changes now because the long-term drivers of interest rates and the saving and balance globally, these are the things likely to move markets, keeping rates down and weeding equity and assets. these other issues are quite important but there are other major drivers and guardrails. put youhere does that in terms of recommendations for durations and longer maturities? tony: on the durations front, it's a nuanced view. in the context of a well balanced portfolio and most investors have equities, and bonds in their portfolio,

duration, high-quality securities like government bonds in u.s. treasuries still have a place because it's insurance. to goyou want, for today out for example and say i don't need my insurance policy today -- probably not. some would say yields are too low thomas so i'm not interested in that insurance anymore. the problem is you will always pay a price for insurance, but it's a little more now. we would expect rates to climb slowly over time, mostly on the long and, since the front end will be held intact by frozen central bank interest rates. but not a lot of movement because it takes a big move and inflation meant expectation and a change in the so-called term premium, the amount of yield investors demand for risk, and we are not expecting meaningful

movement in those areas in the near term. just slight movements. does 60/40 make sense in a low rate environment? tony: all of our work indicates fixed income still will play a 60/40le role in a context. from an insurance angle, from a hedge value perspective, treasuries and high-quality securities still have it. imagine a very adverse scenario where the long on, the 30 year bond would go. where would it go? it would probably move toward 0% for the 10 year. that's a 10 percentage point move which would mean a meaningful offset to risk. adverse what if in an scenario, market participants were to drive u.s. interest rates into negative territory as they are in japan and europe? that would provide protection.

in that context, there is still room, but the final answer is we would suggest more active management than usual of the risk factors and asset classes within the bond market because yields are low and to achieve better returns, one has to do a bit more work. shery: a big part of that is that idea we are going to see a messy reflationary effect, articulate with measures in a biden administration. is that likely to happen? is it more about managing the depth of a recession as opposed to creating meaningful reflation, particular when you look at the difficulties the bank of japan has had for the past two decades? tony: a great way to think about it, from both perspectives. japan, with all of its money printing was not able to achieve much and there is meaningful amounts of recovery to be had

still in the united states and inflation expectations, as i look back and research on this matter, they don't change that much. you have to go back to the 1970's to see meaningful change. over several years, it might change in a nation like the united states by a few tenths of a poinsettia time. each means there won't be much movement and yield from that. the inflation change -- inflation trade will have to come from that and there is a framework that says we are not going to raise rates until we see inflation hit 2% and until there is a broad and inclusive gain in employment. this allows for experimentation when those are met and it will be in contrast to the early 2010s when the fed is going to stop this, so let's lower our sights on inflation, so there is

a chance for inflation to pick up in a couple of years time because the fed has laid the groundwork for it by saying don't worry, we are going to let it go. the inflation debate has been going on forever. what is cranking up seems to be the regulatory risk, especially when it comes to the tech sector, which i find interesting. haps even less given the biden administration and the split government we could see after the january runoff, how does that position you when it comes to credit in that particular sector? tony: a very fair question. while pimco suggests an overweight to credit, we say we would be highly selective about credit and we prefer high quality so-called spread alternatives. the tech sector is one area of strong growth likely ahead, in the because the recovery in 20 20's is likely to be the most digital, inclusive, and green we

have ever seen. that digital part comes from everything we understand about the acceleration of change during covid. the prospects are good but deregulation is a threat but not likely a significant threat clear messages a from the election -- america tends to be governed from the center. reregulation, there's likely to be a meaningful amount of it, it won't reach too far and the u.s. is in a cold war sorts with , a miniature cold war, but rather than an arms race like the soviet union and the united states, this is a tech race in a sense and that can be good. that can make the pie larger. so look for that to be an accelerant of good things. don't go into a cave.

if you did, you lost and there will be ups and downs and worries but most likely, there will be encouragement for the sector because of this tension between the u.s. and the other parts of the world, especially china. what kind of opportunities do you see with biden's focus on green energy, electric vehicles and that realm? tony: enormous. i've published five books and i will be publishing one of them a third time soon and i added a chapter on it. the idea of esg investing, because it has become so important, the youngest esgration cares a lot about investing and environmental issues and they will be recipients of meaningful amounts, tens of trillions of dollars of money passing down from one generation to the next and that money will move markets

. finally, there's huge attention on this issue, not just from the government sector but from the private sector. one can simply look at davos and stakeholder on capitalism over shareholder capitalism, overturning a 50-year-old bias. this is an exceptional opportunity for investors in that realm but one would have to be highly selective. with out of doubt, it would be a growth area for many, many years. always great to have you with us. stock up next, this is a to watch when japan opens in just a few minutes. the company cut its operating loss outlook as crosscutting measures take hold. more on that. this is bloomberg. ♪

shery: we will be watching nissan when markets open in tokyo. the carmaker cut its outlook for the current fiscal year by a third, fueling optimism it is on the right track after the pandemic. talk to reed stevenson. what drove this brighter outlook? guest: they said in may they were going to reduce capacity by 20%. those seem to be going on schedule, in addition to the broader recovery we've seen in automobile sales, particular in china as well as the u.s. intois all trickling nissan's bottom line and so at least for now, it looks like a lot of the pressure they were facing just a couple of months ago is starting to ease.

shery: what are we expecting to hear in this first hearing? the question is can they catch up to toyota and honda? the sort of recovery that is sustainable. although that did spark a lot of management turmoil, there's a lot of lingering issues to sort it out. reed stevenson in tokyo. up next, covid is raising across the u.s., but a top -- top infectious disease expert, anthony fauci thomas is the end is in sight now that a vaccine is showing promise. but ahead of that, bloomberg's

quicktake has taken a look at how the virus out break is causing rural restaurants in japan to shut shop. ♪ >> in covid times, things are looking different. social distancing means the number of customers and that costs orres can cut widen their business. >> 2020 might set a new bankruptcy record. the number of ramen shops going out of business is on track to be the highest ever. others are adjusting to the new normal.

>> [indiscernible] japanese]ng >> good. ♪

>> this is daybreak: asia. president xi jinping is said to have personally halted an ipo. increasingly irritated by chinese entrepreneurs challenging his personal rule and that of the communist party. a statement last week was said to tarnish the reputation of the state. tencent has moved to reassure investors saying it will work with regulators on china's new demands for big tech. willresident said tencent

cooperate with beijing's control of fintech. a new report warns australia to destructive bushfire seasons, heavier drought and more bleaching of the great barrier reef. the warning comes after unprecedented fires caused more than $10 billion in damage and killed 33 people. a climate report says the trend increases the likelihood of extreme events. 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. at how weake a look are so far in this early part of the asian session. it looks like we are struggling to sustain. downside-- there is a

to tense of 1%. q. week -- kiwi stocks are still on the positive. some commentary about when the border could reopen. that itrnor telling us looks optimistic and 2020. flat tradingg at in futures and singapore. s&p futures looking more positive. was thethat selloff concerns of revival of new cases in the united states and worries about new lockdown's. officials saying an end to the

coronavirus pandemic is insight thanks to vexing development. our health care reporter is on the line. when dr. fauci speaks, we listen. we are seeing near highs of the virus not just in the u.s., but in europe and certain parts of asia and japan as well. the virus is not going away and dr. fauci is aware that. great news on the vaccine coming along does offer hope, but we have to wait to get to that. we have to get through the final data readouts of the trials. we have to wait for the vaccine to work. until then, the skyrocketing rates are going to continue to go up. it's the carrot in the state. on the one hand, he says the vaccine is on its way there is

light at the end of the tunnel. adheregoing to have to to the social distancing and masking and it's going to be a difficult, dark winter to get to the light at the end of the tunnel. get the race for the vaccine continuing around the world, it seems that people are more skeptical about what's coming out of china. china has not yet released any details on its vaccine efforts. what we do know has been suspiciously clean and free of events. there is a certain number of things that happen to people in the course of everyday life. we have all heard about somebody in their 30's or 40's who has developed cancer or come down with multiple sclerosis, who has had unanticipated health events.

vaccine toe giving a tens of thousands or hundreds of thousands of people and there have been no reports of any kind of adverse event or serious unaffected -- unexpected medical condition, you have to worry about the validity of those findings. trials that the about half or more of people getting those vaccines are reporting things like muscle weakness or injection site reactions, rashes, may be a little bit of a fever or not feeling well. to be hearing absolutely nothing other than there are no concerns ish the chinese vaccine making some health officials concerned that the fullness of the information we are getting is not there. >> that was our health care reporter. the top central bankers are worrying that even a potential

covid-19 vaccine might not be enough to rescue their economies from the ravages of the pandemic. our editor joins us with the details. let's get started with what exactly jay powell had to say about this. >> he said with the virus cases rising, they are rising in some areas that already have the virus spike. some parts of the u.s. have not had it yet. he said that in a sense, there is more that needs to be done. he said that the next few months could be challenging. moving onto the head of the bank of england who spoke at the same forum, these are very troubling he called it. uneven recovery in terms of various sectors of the economy. workers we are seeing in this shot, they face risks. they are the ones who are paying for this in some ways.

christine lagarde says when you look across the big river of uncertainty, you can see to the other side because monetary and fiscal steps are helping. the head of the bank of new zealand who i spoke to just hours after new zealand enacted , partial lockdown in auckland the country's largest city of 1.7 million people because the student came down with a case, she went to work anyway. now, they are locking down downtown auckland for now. i started by asking him what is the reaction and also what does it mean for the economy and the they expressedt just this week the monetary policy meeting. >> it means the same here as anywhere else. the answer is, we can only think about a scenario.

we think about a particular scenario, deduce your projection from that scenario then do your policy. the challenge for us is that those scenarios can change so dramatically. our current monetary policy here in new zealand is based on an assumption that the borders will be open by 2022. that is a very bold assumption. even with that assumption, we are still having to maintain monetary policy with rates at lows compared to the rest of the world. it shows the work of central banks to keep employment near a maximum sustainable level. for countries like new zealand, we always have problems is that the interest rates are so low and asset prices are high. for us, that means house prices.

the challenge to keep consumer price low and stable. asset prices are strong. we have our mandate. fact, after the monetary policy meeting this week, the outlook was boosted. you introduced the funding for lending program. investors seem to have stepped away from this absolute certainty that as soon as it can almost, it said it's going to move to negative rates. does the auckland outbreak somehow remind you as policymakers remind investors that maybe it is still an issue that is alive and well, an issue that is on the table? >> yes i don't think the reserve banks have forgotten. we have gone through pains to

explain to people that we are in scenarios not projections of certainty. i am pleased to see markets engaging their brains. we want them to be thinking forward. they know what we're doing and the instruments we used. i really do hope the we are watching the same information and if the economy continues to grow and do what it is doing, it's a beautiful world. but that's a big if. covids news around the puts it back into perspective. be careful out there, be prepared, don't run around on predictions. >> how much are you depending on the new funding for lending program to give the economy the additional stimulus it will need to keep the recovery going and maybe again there won't be a need for negative rates if it does it's job is that it? >> one would hope it's a beautiful world and the sun comes up and covid goes away and

you are right, we can we normalize interest rates. we have a lot of confidence around the funding for lending program being protected because it is such an invasive way into the banking sector to provide very low cost of funding which we will be on watch to make sure that is passed on to borrowers and investors. making it is about confidence in cash flow exists that will work. our challenge is we cannot force people to lend or borrow. we can only create the environment for that to be happening. >> in terms of steps you might take, you have mentioned purchasing foreign bonds. you haven't taken that step yet. is that still on the table and what will that do for you? where is the reason to adopt that step if you do? >> it is still on the table. it is not a preferred option

because we don't think it would be as effective as the many other options. it is a way of building up reserves. it allows us to create liquidity in the market that we need. it would also -- take on the level of the exchange rate. we are buying more foreign selling local. but we don't believe it would have a significant impact really long-term. it would have an impact on the liquidity not through the exchange rate. that's our tool basket. we want to keep it that way because white rule out options. we are comfortable with the funding for lending and the quantitative easing that we are doing at the present. >> a lot of people figure that they might hold onto the foreign bond buying tool until he gets to the strength of the kiwi at some point. i asked specifically about using

it to affect the exchange rate at some point. he said basically probably not because when you are a country as small as new zealand, you don't have that kind of impact on global foreign-exchange. but we shall see. for now, it looks like that is when they are going to save it for a long time in the future and maybe never. >> that was kathleen hays. coming up next, we take a look at hong kong and china's push to stop dissent in the city. this is bloomberg. ♪

a closerwe are taking look at hong kong where china has appended the legislative council by allowing the disqualification of any lawmakers deemed insufficiently loyal. latest just the at thental grinding away freedoms eroding and hong kong. given how much is changed in terms of beijing's approach to hong kong, what is the endgame westmark? >> the endgame is to render hong kong politically the same as

other mainland cities. meaning that it will have institutions that are not democratic and provide no check on the government. that will limit specific activism. increasinglye an quiet judiciary and week press. out.ndgame is to snuff it >> with the resignation of the lawmakers we have seen this week, is this a death knell for the pro-democracy movement which has had its share of struggles already even before this week? >> is not a good sign. to have said that they will stay but the endgame for it as an institution is to ensure that by the time elections are held next fall, they have been postponed for a year, that only

individuals who are acceptable to the hong kong and beijing authorities are allowed to run and take up their seats and their legislative agenda will not include anything that challenges either of those authorities. it will come to be more like the national people's congress in beijing and the democratic -- van the legislative -- legislature it was meant to be. >> what have they done to address human race issues in china and how much more needs to be done? >> they need to speak up and suspend thes like extradition treaties. they have opened up channels for people to emigrate or seek asylum. at the u.s. has imposed targeted individual sanctions on people like carrie lam and officials responsible for hong kong policy. i think we haven't seen the kind of coordinated response which

are more responsive when they are multilateral or the kind of pursuit of accountability for chinese and hong kong government officials who are complicit in human rights watch. that's the kind of response you would see to human rights watch of the scope and scale of other governments. there is a reluctance to challenge china. that is starting to change a little bit because of what has happened in hong kong and around other issues. >> trumpian -- administration has not focused on human rights watch. do you expect that to change with the joe biden administration and how much can we expect out of american leadership on the multilateral front which you say has lagged so far? >> we can expect the biden administration to pursue international responses and to return to supporting and participating in key

multilateral institutions particularly within the u.n. system. ,he big question is whether respecting administrations will come together with of -- other governments to provide the counterweight to the threat that china poses on human race issues or the chinese government poses inside and outside the country. these are much greater challenges than when the biden administration officials served before were dealing with four and eight years ago. it is a different landscape now. get your views on the situation. how problematic is it for the corporate world when a company like volkswagen continues to -- defend making its car parts in the region? parks is deeply troubling. auditing firms now will not try

to on -- operate in the region because they can't get the kind of access they need to make credible determinations that human rights watch elation's -- violations are not taking place. either they have not found any problems, it only raises questions about who they were asking, were they asking people who could answer the questions honestly, are they going through a charade of due diligence or are they trying to do the real thing? if they can't do robust due diligence, can they really be confident that their supply chains are clean and are they willing to wear the reputational from meageritting repression? >> a lot of times these businesses are not willing to speak up and even governments, because we have seen china cutting business ties or imposing sanctions on goods coming from different countries,

what is the risk of the censorship by china spreading beyond its borders? parks i think that is a real risk. we have seen examples in recent years of governments and companies capitulating chinese government pressure even in their own countries. asking companies or companies themselves without even being ored censoring their ads firing people who work for them who have taken positions that the chinese government won't like. that is a real problem. corporations should not be rewarded for playing by the rules of authoritarian governments respecting jurisdictions. that is an alarming trend. shareholders and consumers need to be mindful of this conduct and act accordingly. richardson, it was

great having your views. that was the human rights watch china director. you can always find in-depth analysis on bloomberg radio broadcasting live from our studio in hong kong. plenty more ahead, stay with us. ♪

>> singapore airlines aims to raise another 630 million u.s. dollars through convertible bonds as it continues to struggle through the pandemic. the funds will be used for cash flow to service debts and for capital expenditure. carrier has raised more than $8 billion and is cutting 1/5 of its workforce. it has no domestic networks to fall back on. an indonesian ride service has doubled the number of merchants registered on its platform. the company is still private and says that value rose 10% across .ts for southeast asian markets it says it is on course to turn a profit but it will not say when. ferreri has announced a droptop

version of a plug-in hybrid. it will match the power of its counterpart with pricing in italy starting at the equivalent of $560,000. the spider is the second model since the shown coronavirus halted much of its outputs. >> let's take a look at our asian markets on the spinal friday session of the week. final friday session of the week. a potential vaccine could lead to slower growth. the trump administration looks like it is backing off when it

comes to stimulus talks and leaving that to nancy pelosi. look at the losses, pretty moderate. new zealand's stocks are up. that is a market that may be looking like it's running hot. said parts of auckland have gone into lockdown because of one new coronavirus case. international borders might be open by 2022 looks optimistic. we are seeing a flat start to trading. >> we will have plenty more coming up on daybreak asia. we will discuss the fate of withnt and other giants our guest. from an asiar

portfolio manager. this is bloomberg. ♪ ♪ you can go your own way

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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. shery: welcome to "daybreak asia ," from bloomberg world headquarters in new york. i am shery ahn. stroud-wattsaidi in sydney. our top stories this hour, asia looks set to follow wall street lower as surging virus numbers raise fears of further lockdowns. investors are worried about the timing of any release package in washington. central banks are increasingly concerned about the economic fallout from the coronavirus.

they say that fiscal support is vital. we hear from adrian or. the resignation of pro-democracy lawmakers in hong kong, saying it is a challenge to beijing's authority. theook at what it means for city's business and political future. it's friday the 13th. what do you see? sophie: we are seeing the nikkei 225 in the topix set for a back-to-back weekly gain but rising virus cases in japan may be weighing on risk sentiment. the yen holding gains above 105 and the nikkei 225 edging lower along with the topix. u.s. futures seeing some slight gains for s&p e-minis after stimulus stocks hitting a wall. megan bank earnings -- mega bank earnings -- goldman expecting foreign buying will pick up in 2021. let's turn to south korea. we are seeing downside for the

kospi this morning. aftersending losses in falling on thursday. we have the korean won slightly weaker this morning after it reached 1110. we are seeing the nzx 50 fluctuating for a second weekly advance. the kiwi dollar back the 60 60's zone. it seems to be overdone given lingering uncertainty flagged by governor orr in an exclusive interview with bloomberg tv this morning. we are seeing some losses but using the decline, energy names weighing with oil under pressure. check out the aussie tenure .eight -- 10 year rate the rba will achieve its goal of a flatter curve over time. pulling up the chart on the terminal, after asian stocks rose to a january 2018 high this week, so close to clinching a high that that might not be in the offing just yet.

staying shut.re we are keeping a close eye on sterling given some news out from the u.k. this morning, shery. shery: alright. take a look at what the pound is doing. it's not reacting that much at the moment. but we are just getting breaking news from sky that boris johnson senior advisor, dominic cummings , is going to leave the role by year-end. part of the brexit strategy and is departing following the resignation of the u.k. government director of communications as well. we have seen a call earlier by citigroup that perhaps we could see a rally in the pound. we are not seeing it yet. that's get more insight on the currency moves from our mliv managing editor, mark cudmore. what are we expecting on the pound front as we continue to

see these brexit negotiations and the fact that we now have some key members of the government resigning? mark: i think that this departure of cummings's big news and we might not see the reaction in the european time zone but i expect this to be a positive for the pound. cummings was seen as being a large part of the friction between the e.u. and the u.k. and why many on the e.u. side were nervous there would not be a deal. he was very pro-brexit, a key part of the leave campaign initially, and he has been a hard-line negotiator. there's been a lot of distrust as long as dominic cummings was so key. he is saying he will leave by the end of the year and of course, that is one complexity here for the timing. generally, the pound probably will react positively to the news he will be leaving with a little bit of nuance around the timing issue. as we look elsewhere

around the kind of momentum or lack of momentum, the vaccine euphoria of earlier this week is really starting to wear off. is the downside where we are looking at now as we continue to see these cases surge? lockdowns seemingly inevitable around the world? mark: i think it is. there's definitely a divide in the market and this is not necessarily a consensus view. there's a lot of people saying that because we know there is an effective vaccine on the way, we can look through this winter that's going to be pretty abysmal so many places around the world. we have already placed in a lot of the positivity that we have been turning a blind eye to the real and intense global health crisis we have right now and it's not just that the record fatality numbers we are seeing, it's the hospitalization issues i'm really worried about, the overwhelming of hospital systems which will people with many other health problems suffer and not just as direct coronavirus

casualties. that situation will lead us to talk quite aggressively about the idea of a double-dip recession around the world in the next couple of weeks. i think in the next seven or eight weeks, it's much more about the downside trend. how severe will that correction be? is looking more positive than it was over a week -- even though 2021 is looking more positive than it was over a week ago. u.k. ate have seen the a 1991 high and all of a sudden, all of these risk off moves now coming into the market. mark: i think the theme of asian equity outperformance can continue. it's not just about the coronavirus has been handled much better in this region. it's also the fact that generally, asian stock markets were relatively discounted to u.s. peers already and they have a much better growth trajectory and the fact that china is leaving the recovery and it will bring the whole region with it. asian stocks can outperform. however, it's unlikely we are

going to see asian stocks actually rise if we are seeing a severe correction in the u.s. when i think we will do is see them lower on the downside. they will not fall as much as u.s. stocks with a negative sentiment. when we start trading in the recovery again, asian stocks can outperform. >> our managing editor, mark cudmore. you can follow more on this story in all the day's trading action in our markets live blog at mliv . just one click. commentary and analysis from bloomberg's expert editors. you can find out what is affecting your investments at any point. let's turn to karina mitchell who is in new york. karina: the chances of a new stimulus package in the u.s. are receiving. the white house saying it will leave negotiations to republicans in congress. sources tell us the administration may consult gop leaders but will no longer lead any talks. which mcconnell has been more distanced from democrat

proposals than stephen mnuchin, reducing the chances of any new deal. china has ridiculed a mass resignation of pro-democracy lawmakers in hong kong, describing the move as a challenge to beijing's authority. the entire group quit the legislative council in protest at four of their members being dismissed for being insufficiently patriotic. the u.k. is accusing china of breaching its commitments in the basic law to protect hong kong's autonomy following the 1997 handover. president xi jinping is said to have personally halted ant maup's dual ipo after jack annoyed the leadership in beijing. the dow jones says the president has been increasingly rotated by wealthy private chinese entrepreneurs, challenging his personal role in the communist party. a speech was seen by an attempt to burnish his own image and tarnish that of the state. the tencent has moved to reassure investors by announcing a 29% growth in revenue in the

third quarter, saying it will work with regulators on china's new demands for big tech. willdent lau said tencent -- $200 billion was slashed off their combined market value. 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. shery: we will have more analysis on china's crackdown on the internet giants when we are joined by hsbc's head of internet research later in the show. at next, we shift the focus to emerging-market credit. we will hear from portfolio who seesheresa kong, china driving em growth. this is bloomberg. ♪

haidi: u.s. treasuries rose as the virus research and threatens the potential for more lockdowns. our next guest says investors should make strategic changes in allocations, shifting from the u.s. to asia. let's bring in teresa kong, portfolio manager at matthews asia. it's refreshing and interesting to look at a multiyear view as to what your portfolio should look like, particularly as here, it feels like we have a hard time seeing with the virus situation look like in the next week. do we have a vaccine? do we not have a vaccine? is it going to get worse in the winter? etc. what is your ideal portfolio -- what does your ideal portfolio look like? the idea of asian exceptionalism is a theme that plays. teresa: that's right. if you look at it from a long-term perspective, there's actually not much room left for u.s. treasuries to provide the income nor the diversification benefit.

that is already committed to positive rates. even with a major bout of another bear market, there's only so much upside treasuries can provide with the fed holding rates at zero. 60-40 something you look at being a conservative or sensitive model going forward? teresa: that is a really interesting question. i think the focus should really be on the 40. the 40 that is in fixed income. the point here is that a lot of assets are now risky. treasuries is really fixed income without the income. so investors really need to look to other places for the income. from a strategic asset allocation perspective, this is here to stay. we really do not think that, you know, at this point, there is really that much more upside, and given that there is so

little yield, investors really need to think much more strategically about looking to new places like asia asked in to get that income and yield and diversification benefit. shery: they have really flocked to china, haven't they? does that mean that perhaps the window of opportunity is now gone or is it still a good entry point? teresa: no, investors have not missed the boat. and here is why. if you look at relative value between u.s. high-yield versus asia high-yield, from an apples to apples comparison, from a credit perspective, they are very similar. however, you are actually picking up 7.8% yield in asia high-yield space, a three percentage pickup relative to u.s. high yield. is that a free lunch? the reality is that the u.s. bet, the asset purchase program, has provided a bid to u.s. high-yield, and as a result, asian assets have lagged, but

that does not mean there is not more room for it to run, especially given a more positive economic recovery out of asia. the bottom line is that there is actually substantial room for asian credit to run, and we are very positive in this market. shery: what sectors would be like at this point? teresa: one sector that provides a lot of good value is china property. this is a sector that often times has been volatile in the past and one regulation that the chinese government has put in place recently is known as the three red lines. simply speaking, it prevents a property company from taking on too much leverage and that is actually good news for bond investors because this translates into guardrails around the company and if the company cannot pick on too much leverage and too much debt, that typically translates into lower financial risk, lower spread, and higher price for

bondholders. haidi: when you take a look at the sustained strength we have seen and the yuan, the growth differentials that continue to drive current account differentials, that suggests that we have not seen the last of rmb strength, what does that say about your convictions on tiny sovereigns? bonds are attractive from a couple perspectives. first, as you mentioned, the affects. we don't think the affects -- the fx. does not have a lot of room to run. wheres not necessarily room for appreciation is in the short run. we think rates is one area where chinese rates are actually quite high and can fall pretty substantially over the course of the next year so we are talking points aso 30 basis

our base case for rates to fall in china. shery: teresa kong, always great having you with us. matthews asia portfolio manager there. the head of new zealand's central bank says the nation's latest case of covid-19 has prompted a partial lockdown in auckland and is a reminder that the pandemic hangs over the economy. the reserve bank of new zealand governor, injury and or, spoke to kathleen hays about what the pandemic means for new zealand's economy. adrienne or, spoke to kathleen hays about what the pandemic means for new zealand's economy. >> we can only speak about a scenario. we think about assumptions, credit, particular scenarios, and then do your best for policy. the challenge for us is those scenarios can change so dramatically. policy int monetary new zealand is based on an

assumption that the international borders will be opened by 2022. that is a very bold assumption and even with that assumption, we are still having to maintain monetaryulatory policy. it shows the work that is ahead of central banks to keep inflation positive and to keep employment anywhere near a maximum sustainable level. we always have problems. asset prices are seemly high. for us that primarily means house prices. the challenge to keep consumer price inflation low and stable, asset prices are very strong and the central bank wears plenty of cop to that but we have our mandate. fact, after the

monetary policy meeting this week, the outlook was boosted. you introduced the funding for lending program. now to haveem stepped away from this absolute certainty that as soon it can almost come rbnz is going to move to negative rates. does this auckland outbreak then somehow remind you as policymakers, remind investors, that maybe it is still an issue that is alive and well, an issue that is on the table for the rp and said? -- rbnz? adrian: we have been at pains to in claim people that we are scenarios, projections, uncertainty. i'm pleased to see them engaging. we want them to be thinking forward. they know what they are doing, what we have to achieve. that they arepe

watching the same information. if the economy continues to grow and do what it is doing, it's a beautiful world. .hat is a big if today's news around the covid just puts another, you know, puts it in a new perspective. be careful out there. be prepared. do not run around on predictions. kathleen: how much are you depending on the new funding for lending program to give the economy the additional stimulus it will need to keep the recovery going? and maybe again, maybe they will not be a need for negative rates if it does its job. is that it? adrian: one would hope it is a beautiful world unless something comes up and kobe goes away, and you are right, we could re-normalize interest rates. we have a lot of confidence around the funding from the ending -- for lending program. it is such an invasive way into the banking sector to make -- to provide very low cost of funding.

to makell be on watch sure it's passed on to borrowers. and investors. is making sure confidence in cash flow exists. is we cannot force people to lend and borrow. we can only correct the environment for that to be happening. in terms of steps you might take next, you have mentioned purchasing foreign bonds. is that still on the table and what will it do for you? what is the reason to adopt that step if you do? adrian: it is still on the table. it is not a preferred option and it is not a preferred option because we don't think it would be as effective as the many other options, but you know, it is a way of building up reserves. incan hold more of those foreign currency terms and it allows us to create liquidity in

the market that we need and we have impact on the level of the exchange rate. you know, we don't believe it would have a significant impact really long-term. it would have an impact on the liquidity. not necessarily the exchange rate. we want to keep it there. we want to roll out options. but we are very comfortable where we are with the funding for lending and the quantitative easing program we are doing. orri: that was adrian speaking exclusively to kathleen hays. you can get more on what central bankers are all saying and other stories you need to know in today's edition of daybreak. bloomberg subscribers can go to dayb on your terminals. this is bloomberg. ♪

shery: take a look at how nissan is trading at the moment. it is rallying.

it has been investing since june. this on the news that they are now reporting a broader outlook with operating losses for the current fiscal year being cut by about one third. the loss for the year to march will be around $3 billion. an early sign that perhaps its efforts to cut fixed costs and restructure the business may be paying off. nissan now surging the most in four months on that smaller than expected second-quarter loss. let's turn to another company we are watching. mizuho financial raising its profit forecast in what is seen as a sign that japanese banks are also coping with the pandemic induced downturn. let's get more from bloomberg's asian finance editor, russell ward. talk us through what prompted the bank to raise its forecast. based theizuho upgrade on what it described as

study results in the first half in its markets and client businesses and that is in line with banks around the world that have kept trading since the pandemic took hold. they also saw a surge in loans. that helped income jump even though interest rates continue to tumble. another thing to note is the credit costs have been lower than the bank expected at the start of the fiscal year and have only booked 40% of the 200 billion yen annual projection and that is due to massive stimulus by the government and central bank which has helped to keep companies afloat, however, the ceo did issue some words of warning given that covid addictions are spiking once again in japan and elsewhere. we are seeing banks around the world take a similar stance, making sure they stash away enough cash to cover loans and mizuho is doing the same. haidi: it has been a pretty good profit season broadly for japan. what are we expecting from the other big banks when they

released their earnings later today? should expect positive results from them, too. they do have more overseas credit exposure than mizuho but that is already projected. japanese banks have benefited from the same stimulus and rush to borrow by companies that are seeking to get the cash to ride out this pandemic. loans have been growing at a record pace in recent months. we can also see gains from sales of bonds and interest rate portfolios and some stocks as they continue to sell across shareholdings but whether that is enough for the banks to raise their profit forecasts, we don't know. we will have to see what the ceo's have to say about the outlook and whether they are skeptical. financeloomberg's asia -- russell ward. disqualifyove to

pro-democracy lawmakers breaches their joint agreement. have the latest, next. this is bloomberg. ♪

karina: this is "daybreak asia." i am karina mitchell. the federal reserve's warning fiscal stimulus is required to support the u.s. economy as potential vaccines may not en d the economic fallout from the coronavirus. chairman jay powell spoke at a panel and said in the coming months, it could be challenging. the bank of england governor and ecb president both echoed his caution, adding to other recent bank warnings. reports from london say prime minister boris johnson's top advisor is to leave by the end of the year. sky news says dominic cummings will go amid rising unhappiness among conservative mp's.

he told the bbc that rumors of him quitting are invented and say the decision to make him redundant have not changed. downing street sources say cummings will be out by christmas.the world's largest free-trade trade agreement is expected to be signed this weekend as asia-pacific nations conclude negotiations at the asean summit in hanoi. the partnership aims to reduce tariffs and strengthen supply chains with common rules and set out new e-commerce regulations. india has declined to be involved. philippines financial markets will be open after being closed by the passage of the typhoon. it was the 21st major system to hit the islands this year. at least seven people were killed. currency and bond markets will be shut for a second day although equities will trade. it is forecast to leave the philippines today, weakening as it tracks across the south china sea to vietnam.

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. sharing. -- shery. shery: breaking news out of japan. ntt planning a record japan bond sale of over ¥500 billion, according to the nikkei, raking the attribution. ntt expected to use the proceeds to finance that deal, buyout and buyout.como this would be the biggest single sale ever in japan and ntt could increase the bond sale by ¥700 billion depending on the demand from institutional investors according to nikkei and ntt eyeing offering bonds with maturities ranging from three years to 10 years in this biggest single sale ever in

japan in order to finance that docomo buyout as well as 5g investments. shery: let's take a quick look at how the broader markets are trading at the moment. we are seeing party for japanese stocks with the nikkei down at the moment. this after reaching the highest levels since june 1991. it has gained ground for the past eight sessions and now that we are seeing this worst day of covid cases in japan, we are seeing pressure. the kospi unchanged at the moment. it fell yesterday after reaching that 2018 high as well. a little bit of risk-off sentiment around asia. the asx 200 holding steady after breaking its longest streak of gains since june as well. kiwi stocks rebounding from yesterday's losses and up .4%, haidi. use strained relations between the u.k. and china has taken another turn lower as the u.k. summons the chinese ambassador to protest the latest

crackdown on hong kong. canada weighing in on the issue, offering new work permits for young and educated hong kong citizens who might want to leave the city. our chief north asia correspondent, stephen engle, is following the developments. he joins us from hong kong. we heard from the u.s. yesterday. what are we hearing now from the u.k.? stephen: the u.k. has summoned the ambassador from china to the u.k. to protest this move. this new law that came down from china's national people's congress standing committee, that requires basically allegiance and loyalty, patriotism for any legislative council member here in hong kong, and that ended up leading to the disqualification of four pro-democracy lawmakers here, of course, and then the subsequent resignation en masse of the entire pro-democracy camp yesterday. some 15 more lawmakers resigning or pledging to resign, and dominic raab, the u.k. foreign

secretary, saying this is the second time in six months, and the third time since the 1997 handover from the u.k. to china of hong kong that it has accused china of breaking terms of the sino british treaty on hong kong. of course, the most recent one was the national security law which was imposed on hong kong and promulgated on the latest night on june 30. this is what he says. the u.k. will stand up for the people of hong kong and callout violations of their rights and freedoms. with our international partners, we will hold china to the obligations it freely assumed under international law. he says the move by beijing over this course of this week breaks the joint agreement on political and legal conditions in the former british colony. china's foreign ministry in a statement, fairly terse, says china strongly opposes defamatory comments by foreign politicians on the decision on hong kong. comments fromy

foreign nations, including what we got yesterday from the trump administrations national security advisor, robert o'brien, about possible more sanctions for hong kong, clearly, these are not going to sway the leadership in beijing and there moves on hong kong, whether it is the national security law or the subsequent patriotism offer members of parliament -- ledge co.. the number of u.k. lawmakers is growing from different parties. they have called on the u.k. government to impose sanctions on chinese officials, including the chief executive, carrie lam. shery: what about canada? what is it saying? stephen: well, canada is -- the relationship is bad there, too. stemming from the 2018 arrest of a representative of huawei, and they have gone down ever since. china is widening the welcome mat for hong kong recent

graduates, young, educated hong kong citizens will now be given -- they will create a new three-year open work permit for recent graduates here in hong kong. it shortens the eligibility for permanent residence -- permanent residency to just one year, and are kongers who already in canada will be able to apply for permanent residence latest sooner. this is what the minister of canada said as he laid out plans overnight. marco mendocino is his name. he said hong kong people have made outstanding contributions to canada and the changes we are announcing today will strengthen our relationship. beijing's actions demonstrate a clear disregard for the basic law. canada will stand with the people of hong kong. all of this of course -- let's bring up the gdp bar chart. all of this condemnation internationally just waves on the hong kong economy -- weighs on the hong kong

economy and sentiment. they are not as bad as the first and second quarter where we saw 9% plus contraction, but still, we are likely to get a confirmation of that preliminary reading we got october 30 of -3.4%. shery: our chief north asian correspondent -- stephen engle, our chief north asian correspondent. earlier, we asked a former u.s. under secretary of state, robert tour, about the political upheaval in hong kong and the u.k. calling in the chinese ambassador to protest. robert: normally, it is an act of opposition to what has been an insistence on clarification of why it was done, or some other way of figuring out what is going to happen next. very difficult position because they have of

time, been, for a long the people who ran hong kong, they are the ones who made the deal on hong kong. on the other hand, the british lose itseat deal to relations with beijing goes sour. so they have to walk a very fine line to underscore what they properr to be the implementation of the agreement they made with the chinese years ago when margaret thatcher was prime minister. they also want to make sure they keep good relations with beijing because it's critically important for financial markets depend heavily on chinese financial business and they are selling a lot to china, so this is going to be a very complicated conversation that they are going to have between beijing and london. >> former ambassador to egypt and now 10 years on the watch in london, ambassador robert

hormats shares in common with you and affinity for the fletcher school at tufts university. i believe they have a course on realpolitik. what is the power structure right now for the united states and the united kingdom to push back against beijing? --ert: the fact is we have the british have very little leverage on beijing as to what they do in hong kong. is you know, carrie lam still running hong kong, but certainly, it's very heavily dependent on what is told to her by the authorities in beijing. a very complicated situation. beijing regards anything foreigners say as intervention in internal affairs for china. beijing also wants to keep china as a vibrant economy. it is very important to china that hong kong thrive.

they are making their views known in various sort of ways. on the other hand, they are not going to do anything and they are going to avoid doing anything that disrupts activity for economic and financial activity in hong kong and the british are going to have to demonstrate for their own publics that they are taking a strong stand. on the other hand, they don't want to disrupt relations with beijing either. it's very important to them economically. they want to preserve influence in the higher levels of the government in beijing. >> ambassador, will the u.k. find partners in this? we were hearing from the foreign secretary, dominic raab, saying the u.k. will work with international partners to hold china to its treaty obligations. who will fight this fight with the u.k.? robert: that's a great question

and yet to be seen. the reason is that a lot of other countries -- they have very little influence over what china does mean hong kong these see, and second, they also china from an economic point of anw is vitally important in economy that is undergoing great difficulty. they don't want to disrupt economic ties with beijing or political ties with beijing. very fine balancing act that they have to walk and it is yet to be seen whether a lot of companies who may want to take tougher positions verbally are willing to do that disruptsy relations with the authorities in beijing, and the authorities in beijing have made a very clear that they do not want other countries to be intervening in this. it's an internal affair for them.

>> that was robert hormats speaking with tom keene and francine lacqua. coming up next, china's antitrust guidelines raise questions about the future of its internet's giant. we will be hearing from hsbc's binnie long. -- binnie wong. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. instacart has tapped goldman sachs, for an ipo that could value the grocery delivery app at $30 billion. begand cap -- instacart as a boutique service but was transformed by the virus as home delivery demands surged. indebted chinese developer evergrande has won approval from the hong kong stock exchange to list it's a service group. it's under heavy pressure to pare back a debt pile and it has been told by regulators to report on the 15th of every month. the property management arm is 72% owned by evergrande groups but the size of the sale and other details are not yet known. platform e-commerce defied the antitrust guidelines from beijing with shares surging

more than 20% after reporting a rise in third-quarter revenue of 89%. the company logged sales of over $2 billion as the shift to online shopping continues in post covid china. however, is still reported an overall loss on rising subsidies. to tencent. turn it beat estimates as a pledge to work with regulators on new rules in china. the internet giant is about to trade tower. this with theall hsbc head of asia-pacific internet research. give us your take on the earnings results and their comments on the chinese rules they have to adhere to now. tencent reported a strong quarter. particularly impressive is the games business continued at a 60% type of growth services something that is attributable

by the strong profits to gains they had and also looking forward, they are adding some new games so one of the new games they added is on ios china for among the top three and then in some cases, it surpasses one of theirs. is veryd momentum strong. it's diversification in the business that makes it better for the headwinds. diversification in the games business, advertising, simtech, and clouds business, you see diversification. ons not just heavily relying one or two games but it's a strong pipeline there. it offsets the weakness. >> are you saying that will be enough to offset any of the weakness that may come from regulatory issues inside china? binnie: if you look at the

guidelines that were recently out, it's saying we have to take one step back as we look at this. it's not unique to china. promoting fair practices, industry fantasies. if we step back and think about platforms, it's not just because of the strategies as they mentioned, the business practices they mentioned in the guideline but it's much more the cost of the ecosystem, the digitalization, technology, the innovation. supporting they internet industry so overall, it is still supportive of the industry but it just that they also want some more of the fair guidelines. if you look at tencent's case, because they have always seen an open platform and they have been focusing on the innovation, very disciplined monetization thatach, this is something

fits well with the spirit of the guidelines. the regulatory dressing down, the fall from grace that we have ant financial, it seems to have come from all the way from the top. isthis a concern where there this need for entrepreneurs, for internet investors to exercise this kind of caution around the leadership because of potentially political winds? binnie: if we look back at the kind of purpose of the regulations, it's promoting a more fair practices among the players, so there is something i said, thes we antitrust guidelines are not something unique to china. this is something, if you look back at a lot of this, it's focusing more on the preference

which they are engaged in. there is less impact on it. haidi: what was your take away from singles' day? it feels like seals week. singles' day -- singles week. is there a sense of permanent changes to consumption within china? binnie: yes, i mean, if you look at singles' day, this is very robust growth. if you look at alibaba, jd.com, in terms of the single day sales, it has extended over 11 days. we think the focus should go beyond just the numbers. after all these promotions, efforts, how much are retaining on the platform. that should be an even bigger focus. also remind that sometimes, when

you compare growth across the platform, you look at the definition. how they defined it. and also, in terms of the strategy, how they can leverage the uses they garner through this festival, and that can retain on the platform, and that will be something of a focus as well. haidi: appreciate your time. , hsbc ofng asia-pacific research we will have more on the outlook later today. we will be joined by the global investment portfolio manager who will be with us. this is bloomberg. ♪

>> climate change is happening. this needs to be repeated over and over. >> 120 six governments have committed to net zero. >> we have to harness the firepower of the financial sector. >> the finance community that has a critical role to play in driving this. we want to lay out for our intend tors how we align with the paris accord. the investment industry now has the opportunity to further accelerate this phenomenon and

demonstrate that we can be a catalyst for change. >> the economy challenges of the climate transition are phenomenal. and then i asked myself how much does it cost? a lot. but nothing that we cannot afford. because the cost is our survival. shery: leaders highlighting climate change. don't miss our new bloomberg show, "green," launching on bloombergquint take in this week -- bloomberg quicktake and bloomberg tv. it reported a smaller than expected fourth-quarter loss. su keenan is following the action. many focus on those disney plus numbers. su: many on wall street and disney ceo's say disney plus is the key to the future of the company. shares shot up as much as 7% before giving back a little of

the gains as disney blew away subscriber estimates for disney plus. million paid subscribers and all of this helped disney's recent entry into this streaming -- into the streaming video wars. and then you have amazon, also a strong rival in the space. disney has been reeling from the pandemic and its strong growth in disney plus helped soften the blow. the ceo was pleased. let's listen. >> despite the many challenges and hardships, i am proud to say we have been steadfast in effectively managing our businesses under enormously difficult circumstances. we have not just persevered during these tough times. we have also taken a number of deliberate steps and smart risks that have positioned our company for greater long-term growth. disney plus was clearly the

star of the show. the direct to consumer platform was launched just over a year ago and subscribers in india helped fuel the growth. they make up about a quarter of the platform. disney's loss of $.20 a share was less than expected and revenue slid to $14.7 billion, but that also beat estimates. haidi? haidi: let's talk about the parks division and of course, it was not without its controversy in asia. in the box office, it was roundly dismissed as a failure. what about the numbers we got from disney? su: disney was not specific on the numbers for mulan but the ceo said he was pleased overall with the decision to release it direct online for a $30 fee. again, not specific about how well it was received other than it was positive enough. as for the parks division, it continues to be a drag.

disney extremely disappointed. california parks remain closed. back to you. ♪

friday welcome to "bloomberg markets: china open ." i am tom mackenzie.