>> a very good morning and welcome to "daybreak: australia. >> good evening from bloomberg's world headquarters in new york. i'm kathleen hays. >> asia markets look set to rise at the start of a new week after wall street's record close on friday. a new lockdown in the us is looking less likely. dealtrade deal -- the

encompasses more than 2 billion people and has been more than 10 years in the making. afterent trump backtracks appearing to admit defeat in the election come he still insists the election was rigged. >> let's take a quick look at the record move in u.s. markets. economically sensitive industries gained momentum even as coronavirus surges across the nation that could lead to more restrictions. the s&p 500 rallied to an all-time high. the dow jones industrial rise -- rose to close at pre-pandemic level. home winner, zoom video communications tumbled. we will speak to a bullish investor on stocks coming up and he thinks we are going to find out in the third order the u.s. pandemic caused recession is

ending and we are setting the stage for a -- market. >> the record close on wall -- giving some we are seeingthat coronavirus surging. higher trading when it comes to kiwi stocks. in sydney, rebounding from friday. we are also looking ahead to third-quarter gdp numbers out of number ofell as a japanese numbers. years ofeight sometimes difficult negotiations, the largest ever free trade deal has been signed. the regional comprehensive economic partnership includes 15 countries with china, japan,

australia, and all of aussiean. -- asean. this is expected to be good news for the economic recovery. of theorrison them australian prime minister, said it was crucial as the region rebuilds. saysesia is trade minister it will boost his country's economy by 11%. this is the largest trade deal ever. it covers a third of the world's population, 2.2 million people. than $26 trillion. 10 member nations, all including china, japan, australia, new zealand, and south korea. india pulled out last year. wanted to retain farm subsidies and was worried about how the

deal might affect its most vulnerable people. india has an option to join later. this is going to eliminate goods. on 92% of traded facedtralia has recently some heavy-handed trade pressure from china. is there any expectation this might help offset that somehow? australia goods have been subject to inspections, reviews, and bureaucratic problems getting into china. all of that is continued -- considered to be veiled retaliation into inquiries regarding the origin of the coronavirus. there might be an immediate benefit. the meetings have been happening virtually. when the in person meetings resume next year, australia may be able to use this as an opportunity to meet with chinese ministers because there have been no ministerial contacts between the two countries since

this diplomatic spat got going. simon birmingham is encouraging china to act in the spirit of the deal. this deal does boost china especially when you consider that china pulled out of the ttp. there are a few more steps to go in the deal though it will be ratified with six asean countries and three non-asean countries. there are a lot of fingers crossed across the region. let's go over to karina mitchell with the first word headlines. president trump is still refusing to concede the election but appears to admit joe biden a one bank. he said "he one bank because the election was rigged" the quote was flagged by twitter. later, the president tweeted he

is conceding nothing. there is a long way to go in the white house race. the u.k. is hinting that brexit talks may be extended as the two sides face the deadline. the two sides head back to brussels with the johnson government saying it will not change its stance despite some reported progress. is irish prime minister believed to have said that the deal is difficult but possible. china has issued an alert telling northern regions to reduce emissions as air quality worsens with the approach of winter. the area is expected to see potentially heavy air pollution this week due to poor weather conditions and high your heating and missions as the economy recovers. officials say that pollution has exceeded level seen in recent years. 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. >> still ahead on the show, the top u.s. infectious disease expert hopes recent vaccine claims leads to higher acceptance rates but william haselton is not so optimistic. and no concession. president trump backtracks on any hint of defeat. the latest out of washington just ahead. this is bloomberg.

is againent trump showing no signs of conceding the election backtracking on earlier hence he thought he could have lost after tweeting that joe biden won because the vote was rigged. he followed that up saying he conceded nothing. this bitter -- twitter

drama all about? >> over the last week, at some point president trump will look for a way to accept a fee and claim victory in this same breath. we thought we had that today. he won but only because the election was rigged. he made not have quite meant it that way and within an hour, he recanted. certain confidants like geraldo rivera that he wants to see the results of the recount in georgia. the recount is going quickly. it is more likely to change 12 votes and not 12,000 votes. they are not finding anything. it is going very well. one of the next things will be a certification state by state. thanksgiving,rds

more and more states will say that the election results were right. as you know, the trump campaign has filed numerous lawsuits. they are all pretty much being thrown out for lack of evidence. and it doesn't seem like there is much they can do. i think you will see them continue to file those suits as the incomingrmine administration. we think that is the goal at this point. kathleen: i think many people have looked at joe biden as a trumprpoint to donald particularly on the virus so they might find it surprising after trump pushed back on another lockdown that joe advisers don't want a lockdown either. ros: joe biden has said that he has listened to the doctors which may have been in -- misinterpreted that he wanted to go with a hard national

lockdown. that is what president trump talked about in the campaign rallies before the election. we heard from three members of joe biden's coronavirus gene. thatbasically said national lockdown's are too get atf an instrument to the states having particular problems. they say there will be more locally driven policy. some people will feel somewhat relieved. also heard that joe biden's withwill meet this week pharmaceutical companies and they are focused on the vaccine -- those that are coming. and the incoming chief of staff said not just the incoming vaccine but getting it to the people.

that is what they are focused on. at the same time, they are aware that lockdowns and hard measures really take a toll on people, small businesses, and workers and it is something the team is aware of. it has been a real balancing act as it has been for the trump administration. that seems to be the advice that joe biden will be getting in the next few weeks. kathleen: i'm sure that will be a relief for many shop owners across the country. coming up on the show, u.s. stocks are at record highs as markets continue to weigh it vaccine against the virus. bhagat is cautiously optimistic. the market is next. this is bloomberg. ♪

kathleen: the start of the asian

market, they will extend gains after u.s. stocks closed at a record despite surging coronavirus numbers across the united states. the disconnect fits into the thinking of sandip bhagat who is the cio from whittier trust joining us from los angeles. closed at an all-time high and the dow rose to pre-pandemic levels. are people getting too bullish now? sandip: investors have struggled with this debate in terms of whether this is driven by fundamentals or by -- and the disconnect between main street and wall street comes about because wall street is making new highs and main street is still experiencing the pain on highedical front,

unemployment and rising layoffs. how do you reconcile this? there is a cognitive dissonance between the two and i think it can't be squared up by simply thinking about what the president is telling us versus the future. let me see if i can explain this very likely. we know the job of the stock market is to look ahead and account for events in the future. ever since the pandemic began come every single day there was a potential that the future could be significantly different than the present. and what happened? the future was actually a lot better than what we had feared in march and april. and there you go. that is the reason for the disconnect. main street was reflecting the pain from the fallout of the pandemic. lookingeet though was at these future improvements and of the future simply pricing them in ahead of the actual incidents in the real economy and there you go.

that solved the disconnect. i would rather call a day reconnect to the new reality in the new future. os from our washington bureau was reporting that joe biden's virus team is not in favor of some kind of across the country lockdown are still virus cases rising. if something like that happens, does that alter your call at all? sandip: we know we are in the middle of a really dangerous second wave and it will not get better with the cold, dark winter months i had of us. however, we have learned a lot about how to deal with the virus. i will point to two developments on the medical front. we had no idea back then that a vaccine would become available as early as it has right now. pfizer is recording remarkable success on its vaccine candidate.

this is human ingenuity. you also have human adaptability. and we have learned how to live with the virus without requiring national shutdowns. there has been improvement in drugs and therapies which have also mitigated the risk of death. let me go back to the previous theme of the present and the future. the stock market is looking ahead at the future where there is a vaccine. there is broad inoculation, vaccination, and continued reopening. i don't think this will slow us down as much as happened back in march and april. >> the stock market is all about that rotation. last week was tantalizing. look at the weekly gains on the chart. compare the blue sky scenario with vaccine helps and

more stability following the election. the most in surging years compared to growth stocks from last week. is the outlook more nuanced? we had one big positive macro disruption. will that continue to play out or are these concerns about high virus cases potentially a delay when it comes to vaccine deployment going to whittle away at this rotation trade? sandip: we are not merely out of the woods. it will be a bumpy ride along the way but it is important to keep in mind that we had a covid recession by all metrics. third-quarter gdp was up 33%. that is a big rebound making it unlikely that we slip yet again into a double-dip recession. from my vantage point, the covid recession ended in the third

quarter. history will tell us it was sometime in august. we are in the middle of a new expansion cycle. what happens to asset classes? small-cap value, economically sensitive asset classes, in emerging markets for good measure, they do perform well coming out of a recession. momentum continues. i will sound one word of caution. this is likely to persist in the near to intermediate term. if you look 5, 7, 10 years out, the fundamentals for growth stocks is so strong, technology has led the way delivering this amazing confluence of revenue growth, arjun growth, profit growth, earnings growth, that hasn't happened before and that is a trend that will persist. this short-term outperformance a value notwithstanding. that goes to your

conviction regarding the growth of big tex. would you be purchasing any dip in those names from here forward? terrifichese are companies and stocks to own for the long-term. preservation and enhancement and transfer across multiple generations. perfect stocks to own for a long time. backdropse of the regarding the more depressed value, we would consider adding to positions that are not what we would call high quality growth and yet growth cyclical names. we kind of straddle the balance between cyclicality and having circular growth trend and starbucks comes to

mind. >> -- thank you so much, sandip bhagat from whittier trust. nice to start the week on that note. heavily indebted chinese developer ever grand is seeing a steep drop in non-bank financing over the last few weeks. adding to its challenges as it dodges a cash crunch. the company has been on a debt inch. the pipeline has dried up. it accounted for 40% of ever grants total $120 billion finance at the end of last year. twitter has suspended the account of an iranian oil minister. it would appear to be a move link to u.s. sanctions. the trump administration imposed measures on him last month and sources say the decision may be associated with that move. twitter has yet to respond to our request for clarification.

sees makeup revival after the pandemic. traction, has gained the market will not completely move away from brick-and-mortar stores. we are already back to growth in the third quarter. the market is still negative so we are doing better than the market but the market should recover. there is a very strong appetite everywhere in the world for beauty products. had this year we is not a demand crisis. it is more a supply crisis because consumers could not buy the products. we are back for example in europe but now e-commerce is getting traction.

when thel be a "when", virus is gone, we will be back to a very good position. the appetite for beauty is absolutely there, more than ever. >> your chief digital officer talked more about e-commerce and they were talking about the fact that it is your biggest market now. all of this clearly fueled by the pandemic. will it ever be what hundred percent? -- 100%? >> item think so. i think it is a new option for consumers. -- consumers are switching part of consumers are switching every year more from the brick-and-mortar model more to e-commerce. it was accelerated this year. it was already going very fast before. last year, our e-commerce sales were growing by 50% which is

really very fast. was even, growth faster because the stores were closed. 25% of ouresents now sales. it is going to keep growing. consumers will always want to have the opportunity to see you products in stores and i am a maat believer in what jack described a few years ago as offline versus online. currently seeing given the fact that europe is dealing with a second wave and france and the u.k. are in lockdown? how does that impact your business? and i'mes not help sorry for our partners including the salons and department stores. it is really difficult for them.

we help them as much as we can. , weng the first locked down froze the payments of all of our , about when as just thousand salons. -- about 100,000 salons. we try to help our system. it does not help consumption. but i hope it will not last too long and i think consumers are now more aware of other options. they go to e-commerce. they find solutions. it does not help. kathleen: that was l'oreal's ceo. and another big guest coming up is ceo of india's largest mortgage lender joining us exclusively to talk about the financial sector and the state

of the economy in the midst of the pandemic. up next, a slew of ego data from china will show how the outlook will improve and important gauges were october you won't want to miss. you have to be ready. this is bloomberg. ♪ - [announcer] imagine having fuller, thicker,

more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music)

karina: i am karina mitchell with the first word headlines. reported virus cases in the u.s. are approaching 11 million. new jersey approaching a record number for a second straight day. boris johnson needs to self-isolate after being exposed to someone with covid-19. downing street says he is well and does not have symptoms. germany will face considerable social restrictions well into next year. china, japan, australia and other nations have signed the largest free-trade deal

encompassing a third of the global population and its economic growth. pact covers 2 billion people and $26 trillion of global gdp. china has issued a pollution telling people to reduce emissions with the approach of winter. the beijing area is expected to see heavy air pollution this week due to poor weather conditions and higher heating conditions. officials say that emissions from iron, steel, and coal have exceeded levels seen in recent years. australian newspapers reporting that legislation is forcing tech giants such as google and facebook to pay for news will become law. he previously said that he hoped the code would come soon after the release of a draft version in july.

lobbying has led the government to consider weakening some of those rules. global news, 24 hours a day, on the air on bloomberg and at @quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. kathleen: we will go to hong kong for market views ahead of the asian trading day and week with sophie kamaruddin. looking at the treasury market, so many of the bears who said the 10 year top 1% in no time, but it hasn't happened yet. what is the call? rates: the b.o.b strategist says there will be a limit to upside pressure on u.s. yields, no matter how good the economy gets because of a fed policy framework. he says that the lift will be capulet -- capped on the 10 year rate. even if the best case scenario materializes.

the latest data shows that u.s. cases have topped 11 million. expecting -- not exciting a break on the 10 year until the third quarter of 2021. many are bracing for more volatility given the intensity of social distancing measures. haidi: that you have really severe implications for the dollar. what is the downside risk for the greenback? sophie: the calculation strategist sees softer demand for greenbacks. rate spreads are shrinking. they are expecting a slowdown and a buying of u.s. debt which has more appetite coming to the euro zone. kathleen: we just had a guest on. he's very bullish on stocks. he's also bullish on emerging markets. what are you hearing about

bright spots? areie: goldman sachs highlighting the chinese u.n. -- duen as the best performer to the trade tensions. going so long as to on hedge government bonds. -- compared to the msci index. we are seeing the offshore holding two-day gains this morning. is expected toa show continued recovery. data coming through when it comes to activity numbers across retailt hour, stronger sales. go live from beijing with a bit of a preview. what do we expect them to be looking for in terms of the nuances of this chartered data?

>> we're looking at four key data points. retail sales, investment, and the jobless rate. one area that will be in focus will be the retail sales, given that october was a holiday month. there was a national holiday involved in that. we are expecting to see a boost. the estimates among economists looking at a number of 5% for the month of october. that compares to 3.3% in september. slowdownsee a modest to 6.7% compared to 6.9% in september. bloomberg economics think it will come out stronger. they are pointing to things like the manufacturing sector here and the initial data which suggests that it is rebounding strongly. china's trading partners have held up pretty well despite the spread of the virus.

you are of investment, looking at a number of around 1.6% year on year. a decent pickup versus september where you saw 0.8%. 5.3%, edgingate, down slightly from september. these data points are expected around 10:00 a.m. beijing time. there are reports that the trump administration is preparing more actions against china in the weeks and months that are left. what do we know? this is reporting from axios which says the trump administration will enact a series of hardline policies and the final weeks of the ministration to cement trump's legacy on china. they are citing senior officials. they want to make its politically impossible for biden

to change course on china once he takes office. the plan is that they will put in place and enact more sanctions and restrict trade with chinese companies, government entities, and also officials with what the u.s. will allege is human rights abuses in hong kong as well and threats according to the u.s., against u.s. national security. we will watch to see what comes from the administration. this reporting from axios says we will get more tough measures from the administration prior to the january 20 deadline when biden will take over. kathleen: are china markets coanchor getting us ready for the important china data coming up in 1.5 hours. our next guest does not think a vaccine will stop the covid-19 pandemics even by the end of 2021.

william haseltine joins the show. this is bloomberg. this is bloomberg. ♪

kathleen: humanity has faced deadly diseases for thousands of years. bloomberg looks at how we can look to previous pandemics to reshape the post covid world. >> humanity has faced the

challenge of deadly disease for thousands of years, and never a new pandemic is born, civilizations adapt. in the 19th century, cholera pandemics set off -- the movement sparked the transformation of paris into the city of light. trading the slums for a wide tree-lined boulevard and monuments led by gaslamps. cities all over the world followed suit. london added sewage systems. and citydwellers were able to take in fresh air. in the 20th century turn, tuberculosis threatened the u.s. creating a greater need for open parks and bringing light and air into design. the 1918 flu pandemic led to the invention of the radiator, with steam heating designed to allow

does to be left open, even during winter months, for improved ventilation. covid-19 has intensified a push by cities around the world to reduce pollution by adding more walkways and building design changes. --is is pioneering the idea creating a community for shops, schools, clinics. reducing the need for transport. forhe past, it took decades them to catch up to urban design. the changes with covid-19 are already taking shape. a reminder that the bloomberg new economy forum does take place this week, bringing together global leaders to focus on the rebuilding of the economy in a post covid world. online, on theed

terminal, and social media channels. with the virus threatening to shut down more countries, some u.s. states are tightening restrictions. vaccine have a been rising. that thereest says is only a slim chance that they will have a safe and viable vaccine by the end of 2021. joining us now is dr. william haseltine. wonderful to have you here. we know that there is a lot we don't know about these positive results. data.'t have the safety there are concerns about the delicate storage conditions. which will be the most toblematic in the road getting widespread vaccination of the global population.

there is apparently good news. the vaccine is preventing a number of people from getting seriously ill. that is tempered by the fact that it relies upon statements of the ceo of pfizer and not the data. , a assuming that is true major roadblock is timing. outfast can these be rolled and how fast can they make any difference on a population wide basis. have been rolled out in russia for some time and russia is participating with the rest of europe, united states and most of the world in viral infection disease. it isn't just the existence but how well it works, and in answer to your question, how soon it can reach people.

probably not most people until the middle of next year at the very earliest. then its dependent on how money people can get it and how effective it is -- how many people can get at and how effective it is. is thathat we have seen it has been rolled out in a more worldwide manner than you would expect at this stage. how do you balance the risk-benefit analysis when it comes to some of these vaccines already being given beyond emergency authorization? understand theo chinese effort to get it out so quickly because there is no choke -- no covid in china. the one thing that they have done is they have used public health measures alone to virtually eliminate the disease from their country. the disease is sporadic. it comes in from outside, for

the most part. they are using the vaccine. it is the one country in the world it probably doesn't need it. russia is a different story. they are making very little difference to the uptick. is that a problem with distributional or an effect of the vaccine? we don't know. for the rest of the western world, south america, north america, europe, a vaccine won't be available for most people until the summer. we're hoping that it will work. we are hoping it will have minimal side effects. ar, we have to hope it is a long acting vaccine. there are a lot of ifs. there is more hope today that a couple of weeks ago. kathleen: it does seem to be a medical miracle for somebody to get something likely to work to market so quickly.

it is also raised the question which is treatment. many people say they don't want to take a barely tested vaccine in the first place. treatment seems like it could be more of an answer in the near term. what seems most promising to you on that front? treatment,comes to and preventive types of treatment or you can diagnose the disease quite early, there is hope there, but that hope hinges on detecting the infection early on. that arey rapid tests not perfect but are very good. i'm advocating a massive rollout of those tests. my understanding is that britain has already rolled out summing like 2 billion of those tests.

for great britain if you are testing everybody once or twice a week, that has great hope. numbercatch it early, a of the new treatments coming out can make a difference. finding a scientific that says with the spray that antagonizes the virus, there is a new technology out of the netherlands, that you can spray into the nose. you can put one infected animal in with others. you can spray the nose and the lungs of the animal that does not get infected. those are the kinds of things that are coming. in addition to the vaccine, it can make a real difference. none of that will make a difference to this current winter tragedy that is unfolding around the world. the only thing that will make a difference to that is changing

-- you had a program about how societies adapt to change. we are adapting but not fast enough. kathleen: in new york city, the cases have risen a bit. not much compared to where they were in the spring and get people continued to focus on the fact that they are rising at all. haven't we made in some areas, where the virus hit earlier, some strides that would underscore what you are saying? the masks work, social distancing works, washing your hands works. in the meanwhile, that is what we can do to protect ourselves and really well. number oftioned a things that do work and have reduced the transmission, but nothing works as well. as isolating those who were exposed or infectious and contagious. we know from what the chinese have done that you can reduce this transmission to zero. you can wipe it out.

you can reduce it from your country if you are rigorous. rigorous about your enforcement of isolation. there are ways we can do it in the west. i have been an advocate of paying people enough in the united states. stay home with her family for 14 days. that could make an immediate difference to this. massive testing. that you can administer yourself, administer at work, followed by a cash incentive to stay home. i think that could make a really big difference. we are not doing it. hair, i would be tearing it all out based on what i see around the world at this point. know president biden has made getting a hold of the pandemic a key part of his platform.

are you optimistic that this administration can handle the pandemic, the rising virus cases, the death toll we have seen and the record number of hospitalizations better than the previous administration? >> almost anybody could handle it better. you could handle it better than the way it has been handled. it has been ignored and treated as a political football. anybody with a brain could handle this a little bit better and in fact much better than the way we have handled it. we cannot deny the reality in the face of a major natural disaster. the biden administration is really serious about it. we are in the middle of a difficult transition, and they are not in a strong position. they are getting very good people. i would like to see more science, technology and medicine.

tied into the long-term history of the democratic party. it is really important to bring in people from other parts of the country and other political views. we have to get this around the country. we have to have systems in any country that appeal to most people. you cannot protect some without protecting others and expect the epidemic to go away. this is a whole country effort. kathleen: what else about protecting, which is something we failed to do from the beginning, those most vulnerable? people in nursing homes. 60% of the deaths have occurred among people in nursing homes. that was one of the biggest mistakes. is that something, in a comprehensive program, looking down the road, that should be at the top of the list? recognize who is most susceptible and protect them at all costs?

so many others are less vulnerable. >> that is the case. there are many things that we need to do down the road to make sure that we are better. one thing that allowed china to .o what it did in times of emergency you federal government to exert its full power and authority across the entire country. you can't have one region that follows one path, and another region that follows another path, and it is so complicated that within a single state might multiple responses were jurisdictions that are in control of the epidemic. we see it as a horribly mixed process all over the country.

the result is chaos, pandemonium, and confusion. we need to reorganize our pandemic response at a fundamental level. we need to change how we organize the distribution of some thing like a vaccine. haidi: all right. william haseltine. we appreciate your time. we have plenty more on daybreak coming up. this is bloomberg. ♪

haidi: we're looking at live photos of spacex. expecting to leave the florida space center on sunday night. this is a milestone flight. they will be taking four astronauts to the iss, just to peek into the future which could see multiple companies provide business, commerce -- sectors into low-earth orbit.

we had seen a delay of that flight going into sunday due to unfortunate weather conditions that could threaten recovery operations. hopefully this sunday as opposed to on saturday. you to a check of the business flash headlines. creating one of the biggest payment providers. point $1 billion. we have operations in italy and germany and in scandinavia. be raising --to next year. valuing the business at $24

billion. on thegest share sale european exchange for three years. we're looking ahead to the market open in sydney. the record close on wall street overnight, faxing optimism, and chinese data. this is bloomberg. ♪

haidi: i'm am haidi stroud-watts in sydney. we are counting down to the major -- major market open. kathleen: i'm kathleen hays in new york. for a look at our top stories, asian markets looking set to rise at the start of a new week after the record close on friday. investors getting more optimistic. data due later this hour will show