haidi: we are counting down to asia's major market open. shery: welcome to daybreak asia. our top stories, asia faces a cautious start after wall street slipped on disappointing data. stocks consolidate as the dollar falls. the dollar index is below 92 for the forced -- fourth time in two years. xi jinping finally congratulates joe biden on his election win,

saying he helps the two can manage differences. he calls for stable regulations with no conflict or confrontation. feeling flat. bank of america disappoints traders with plans to keep bonuses on par. it comes as the lender marks a 20% rise in revenues this year. let's take a look at how we are setting up in the asia-pacific session. we have some downside across the region when it comes to sydni futures. we are seeing a flat start. aussie dollar holding a 7362. we are seeing strength when it comes to the kiwi dollar. still pretty close to the two-year highs as well as the 10 year yield holding as well. shery: let's turn to karina mitchell. karina: global reported

coronavirus cases have now topped 60 million with infections soaring in the american southwest and rocky mountains as people define warnings against traveling for thanksgiving. the european union says relaxing curbs to swiftly could unleash a new wave. germany says restrictions may have to remain until the new year. the partial lockdown has now been extended until the summit 20th. president trump has pardoned michael flynn, who admitted lying to the fbi about a conversation he had with a russian abbasid air. the president had pretrade his prosecution as evidence of a broader conspiracy against the white house. democratic house speaker nancy pelosi says the pardon is quote, an act of grave corruption and a brazen abuse of power. the european central bank is warning lenders will not have to set aside more money to soak up losses when the economy tackles massive debt. the ecb says provisions provide loans are lower in previous

cases and below those in the u.s. the bank is concerned once emergency aid is pulled, companies will struggle to recover repayments and add two extracts. the maleic -- and add to stress. the malaysian premise to put $78 billion spending plan into parliament. plans for the country's biggest ever budget come with him having only a knife edge majority among lawmakers. defeat would be unprecedented for the sitting prime minister, with spending plans are seen as a test of confidence in the government. 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. be seeing auld mixed start for asian stocks as we have u.s. stocks faltering on the new york session. joining us not to discuss is ubs global wealth management's xi quao. thank you for being with us.

we continue to talk about this rotation, whether it continues or it is strong or it is halted like was the case today. is it really a rotation or is it more of a broadening of the markets, with more cyclicals and value stocks joining the rally? how do you position and allocate compared to tech? we believe the market rally can continue from here powered morell the positive -- political clarity with a peaceful white house transition and more stimulus account. so we do expect market leadership to shift from u.s. tech stocks to cyclical and global stocks. we are already seeing a strong rotation into cyclical and reopening trade with the vaccine news, and we expect that trend to continue. shery: how do you feel about cash given that we still have so much uncertainty over infections rising around the world? xi: yes. alsoat this point, and

along with cash is high quality u.s. government bonds, are likely to deliver negative real returns over the long-term. we believe investors should take exposure to equities to enhance potential returns. it feels like we are stuck in an awkward position right now, with markets really wanting to believe in the vaccine euphoria, but still the reality is that we have to get through a northern hemisphere winter and subsequent waves of the virus. so how do you best position to be able to deal with the push pull tensions you see every day? xi: yes. investors have our maintain a balance. we are certainly cautious at this point as we await updates on the efficiency steps towards regulatory approval and the logistics of the vaccine rollout.

balancing is a good way to go right now. this is a good time to look into global stocks as well and diversify into other sectors. the u.s. had a very strong run and we believe u.s. large capital will underperform in other markets at some point. post-covid recovery in corporate morengs will be stronger, favorable valuation in emerging markets. and we like asia, particularly china's digital economy, food delivery apps and online entertainment platforms. haidi: so you believe that the consumer story in china will continue to drive tech even as we continue to talk about this nascent rotation into value? xi: yes. accelerated many of the trends already in place when we enter into what is set to be

a decade of transition. it is important investors exposure with secular growth. what that means is we still like tech, but also recommend to diversify and rebalance into other stocks linked to more normal things which are values and cyclicals and post-covid beneficiaries like 5g and sustainable investing. we also like areas with catch a potential, including u.s. small caps, mid-caps, financials, industrials, and energies. shery: in today's session on wall street, we had electric vehicles losing ground. tesla, they had such a huge run-up this year already. are we a little bit behind to get into those sustainable calls when it comes to clean energy? like sustainability and clean energy is going to be a big thing moving forward in this next decade. so, we're at the very beginning

of that. and some of the stocks are going to be very volatile in the beginning of this sustainability trend. so, at this point, the incoming u.s. biden administration will mad momentum to the green agenda, and promoting sustainability will be a white house priority. and in general, green tech has come into sharper focus globally following pushes by the eu and china to be carbon neutral by 2050 and 2060. so, some of these electric vehicle companies, we see a wide range of vehicle -- a wide range of companies that should benefit from a global transformation to become low carbon in the long-term. so, in the short-term, we aren't late, but there will be volatility. haidi: does 60/40 still make sense as the way up our folio --

as the way a portfolio is balanced? bond,/40, 60 equities, 40 re -- we don'twe a prefer cash or bonds at this point, mainly because of the negative real returns over the long term. and bonds in general, u.s. government bonds, the fed is anchoring short-term rates close to zero. we expect only moderate increases in the long-term interest rate. expecting rates to stay low big -- even as the economy recovers. so we do like to have investors stay with equities and have exposure to either equities or other real assets to enhance the overall portfolio return. from ubs global management joining us. appreciate your time. still ahead, the former fed

official things interest rates can state of zero for years. he will join us with his take on the fed's pandemic response. next, china's president breaking his silence on joe biden's election victory, saying he hopes they can manage their differences. this is bloomberg. ♪ this is bloomberg. ♪

china's president xi jinping says he hopes to manage differences with the u.s., breaking his silence on joe biden's election victory. in a message of congratulations, he says he hopes the countries can advance a healthy and stable relationship. china'sen some time for president to acknowledge the win. we know beijing has been watching these development very keenly. no conflict, no confrontation. what else did he have to say? >> what you are seeing here is

an interesting dynamic play out where the chinese president, according to some people i have spoken with, is actually quite conscious of not wanting to wade into the political mudslinging between donald trump and joe biden. some folks i was speaking to said president xi jinping, he knew if he congratulated joe biden too early, if he said he wanted a situation where there is no confrontation, than that is something donald trump could use as a weapon against joe biden in an interesting way because china has been so central to how these two candidates squared off against each other. one, the accusation that you are weak if you want to see some kind of accommodation with china. it has become such a political football and is emblematic with the way they would conduct foreign policy. so what you are seeing now, ultimately what that told me this morning when xi jinping issued his first statement congratulating joe biden, it was like, ok, the chinese now firmly

believe that joe biden will win. the foreign ministry had issued a statement earlier a week or so ago, but to me, this really showed, ok, they think joe biden is going to win, and they are looking for a situation where they get some slight reduction in tension. joe biden's team has still indicated they will confront china, but they want accommodation in some areas. haidi: it is interesting you say some slight reduction intentions, because it seems we have this very bipartisan agreement that there needs to be a bigger push against china. so i cannot imagine that we are going to see some fundamental changes in this relationship, but at least can we expect the tone to get better? nick: i think that is right. so, the folks i have spoken to on the biden team say there are two big areas where they want to cooperate china. one is on climate change, and the other is on nuclear proliferation. china has been building out its nuclear missiles, and they want

to seek some kind of accord there. and the people on the biden team i have spoken to say, listen, we do not serve those goals i just repeatedly over and over and over antagonizing china. in fact, there is an argument that by antagonizing the chinese and continue only -- and continuously calmed them out, you reduce -- continuously calling them out, you reduce your chance of cooperation. put in some kind of sense of rewards, where according to the u.s. better behavior is rewarded, than that is something they should do. you are right, there is a huge amount of bipartisan support for the idea that it is time to really get tough on china. and that the old system can't stand, and that china took advantage of a lot of the opening and efforts for cooperation that countries like the u.s. propagated over the

last 30, 40 years. shery: nick wadhams with the latest on u.s. china relations. let's now turn to some economic policies. one of president trump's senior advisers is calling for a new stimulus package. peter navarro says american families face a financial chasm as coronavirus aid expires next month. >> we have profound structural adjustments that are primarily hitting our major metropolitan areas. and restaurants, office buildings, the transportation sector, all of these things are going to change in ways which probably won't snap back to what they used to be. so we are going to have to figure that out. my own view is this is consistent with president trump's philosophy, is that in order to offset the lost service sector jobs, we are going to have to make it up in manufacturing jobs. that means bringing more manufacturing here. one of the bad news is that our

trade deficit went up. our trade deficit is going up because we are buying more than we are selling. part of that is because we are recovering faster than much of the rest of the world. but over time, what we got to do is create jobs here, and our best shot is going to be by creating manufacturing jobs, kind of in the trump image, particularly for blue-collar americans. economists, i'm on the bloomberg terminal right now and it says wednesday's data indicates the economic rebound is becoming more tenuous amid soaring coronavirus cases, fresh lockdowns, and an extended deadlock and congress over a new stimulus package. the markets are anticipating there will be additional stimulus. i do not want to go to the talking points of republicans versus democrats on why there has not been a stimulus deal, for both of us, but for how do you break through this? because you are staring down a december 11 deadline to keep the

government open. you've got coronavirus cases, respectively, the data disagrees with you. it's impacting the heartland as much as the cities. so how do you provide this assistance not in terms of long-term restructuring, but right here and right now? >> these are the questions. think the conversation you and i and taylor are having i think is the way to break the impasse, because i think we are having an intelligent conversation about what i would describe as the second derivative problem. the first derivative, it looks like things are still getting better. right? but the second derivative is they are getting better at a slower rate, which means eventually that flips. so what i see ahead is a chasm, as all of these programs expire and we struggle with the structural adjustments. i take your point that the heartland is hurting as well, but i would say that it is the

major metropolitan areas that disproportionately are suffering pain in the service sectors. but the point is that let's have this conversation. what i am sending out is a message to the you and the american people. we can see what is coming, and if we can see what is coming and it is bad, we need to be able to avoid it. and the way to avoid it is to basically hit those three points of the compass in a phase four deal, which is ppp small business loans, a stimulus check, and more relief for unemployed workers. and if we don't do that, there is going to be a lot of pain in america, particularly -- look, and these lockdowns are a regressive tax, meaning that they hurt the people least able to afford it the most. the lower income, service sector workers that have been kicked to

the curb by the virus from china. and the election is over, we a country have to look at the chessboard and figure this out. shery: that was presidential advisor peter navarro with our colleagues. on a keyloomberg scoop decision about bonuses at bank of america. we have the details, next. this is bloomberg. ♪ is bloomberg. ♪

bank of america is considering keeping its bonus pool flat, despite sales and trading revenue jumping 20% in the first nine months of the year. it could set a precedent on wall street. let's get more from our finance reporter in new york. so why are they being so conservative? guest: the reality check here is that bank of america is a large

consumer bank in addition to having a wall street business. less than 1/5 of its net income comes from trading. so the bank is being prudent and face of what is a bigger economic crisis across the u.s.. there is a legacy hear from the 2008 financial crisis and frankly, some bad optics. if the bank decides the pay out big bonuses at a time like this when there is so much uncertainty in the economy, it is a bad look. shery: and obviously the pandemic is causing widespread pain across the broader economy. we see the latest data looking pretty sluggish. so what does the signal for what is to come for the big lenders? lananh: it is a really interesting point which is that this bank is managing expectations, but it may be setting expectations as well. the banks watch each other for signals and for competitive

signs. this could be an opportunity for other banks to have cover to say it has been a bad year economically even if the trading has gone well and i might be an excuse for other banks to build little bit withholding with their own bonuses. at the same time, the banks compete for talents. if someone wants to snap up staff from bank of america, they might try to get a better offer next time around. shery: it is still early days. what could happen between now and next year when bonus checks are cut? lananh: this is a really important time, because what is happening is these initial expectations are being shoved out the door and managers are starting to try and get people used to the idea of a flat bonus season. but obviously what is going to happen is many managers are going to lobby their case, press for bigger payouts for their staff, and try and advocate for their people, particularly in a

season seen such a strong performance in trading. there will definitely be in negotiation here. i do not think this is the final offer. i think managers will try and get as much as they can further team, so this is not the final stage. there's plenty more negotiation to come. shery: other than negotiation, what options do dissatisfied traders have? lananh: not many. as you know, goldman sachs and wells fargo are two firms planning cuts. bank of america has said it will not lay anyone off this year, but that mean -- that might mean they are getting paid less. generally looking into next year, there is a lot of uncertainty over the economic environment. jobsere aren't loads of around in the banking sector people can hop to. so there is that much wiggle room. -- there is that much wiggle room. haidi: let's get you a quick

check of latest business flash headlines. tiktok has won more time to complete a potential sale and avoid u.s. national security terms. the original deadline had already been expended by 15 days. tiktok has been downloaded more than 100 million times in the u.s., but the trump administration says user data can be siphoned off to the communist party in china. amazon's cloud computing division suffered an outage that affected several customers including roku and adobe. they say the data streaming operation has been impaired in the eastern u.s., making it harder to post status updates. services,ide range of including hitting roku the most. adobe of course is a software seller as well as a digital photo service. 32% after it is in

talks to be acquired by salesforce.com. slack develops platforms for messaging and filesharing and has a market value of around $17 billion. slack's stock is still 25% below its peak on the day it posted. our bm is planning to cut about 10,000 jobs in europe as it cuts back on i.t. services in favor of ai and clout. the losses will take about 20% of stocks in the region, but the u.k. and germany will be hardest hit. most jobs will be lost from legacy services such as day-to-day info structure operations, and data sensors. the unit will be spun off next year. next, investor optimism over a return to normal hazmat records in the stock market, but could it also mean another taper tantrum? we will speak to economist roberto perli from cornerstone macro. later we are focusing on the outlook for india's sector. joined --ng to be

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goodrx finds free coupons to help you save up to 80% on your prescriptions. - wow, i had no idea. - [announcer] goodrx, stop paying too much for your prescriptions. promising news of covid-19 vaccines have propelled equities as well as expectations of a return to normal. prospectslso raised of policy normalization at central banks. let's discuss that with roberto perli, former official at the fed reserve. overnight the fed, we didn't glean much in terms of past normalization, but we had an example from the rbnz this week where you saw expectations of negative rates really push back and the currency as well as ponds really reacting. is there a sense that this could

be around the corner? because if the vaccine euphoria is to be believed, in six months we could be talking about tapering. iserto: well, the vaccine unqualified good news, no doubt about it. the bad news is the vaccine will not come quickly, or, at lease for everybody. so the concern policymakers have in the u.s. and around the world is what happens in the interim. so, the longer people stay unemployed, the higher the risk that potential growth down the road will be smaller. so i think the focus for now a policymakers will still be on the short-term and try to do as much as they can to support the economy while we wait for distribution of the vaccine. haidi: we saw jobless claims rising for a second straight week, although home sales are shown some resilience. so, given the unevenness of the u.s. economic recovery, particularly going into a key retail spending season, is there

a sense that we really do need that stimulus package to come through sooner rather than later? although the expectations are we will not get it until after the start of the year. roberto: right. yes, there is a sense that something more needs to be done. the question is what, and on the fiscal side, will we get it? in the u.s. we have a split congress where republicans maintain control. i think the outlook for significance is not that favorable. if democrats win the two races in georgia, that will be crucial, and then the odds of a package are that much better. but uncertainty, if you are a policymaker you are like, well, i do not know what is going to happen. i should do what i can in the near term to support the economy, especially if what i can do has a low cost. for example, just lengthening

the maturities of purchases will be a minimal cost to the fed, but could do something, for at the minimum send a fig no dashes send a signal that the fed is willing and able to support the economy in the near term. shery: how long will it take without a fiscal stimulus package, another one, for consumer spending and consumer sentiment to have a hit? rate is the savings interesting because obviously the savings rate skyrocketed because of all this money the government threw at households in march and april. and that is coming down. but the risk is the savings rate will do more or less the same thing that a debt after the financial crisis, which is to increase and stay higher permanently. maybe not as high as it is today, but higher than before. so that is bad news, because you can say, well, savings is good. it furtherood, but

increases the balance between savings and investment. there's not enough investment to ratchet, and equilibrium rates will stay low or even decline, which means the fed or central banks in general will become strained how much they can move away from zero, if they ever can get away from that point. so it's kind of something that takes us towards, for lack of a better word, equilibrium. low rates for a long time. this has to be avoided at all costs, and that is what i think policymakers, both monetary, but in the u.s. the presumed new treasury secretary yellen, are going to be focused on. shery: you mentioned presumably treasury secretary yellen. what do you think of her coming in and taking that position at a time when we are now seeing the tension between the treasury and the fed, with the treasury wanted to take away some of those funds that were

supposed to stay there as a backstop for the lending facilities? roberto: you know, politics always plays a role in what political officials do. do treasury secretary mnuchin did what he did. it is hard to say if janet yellen would do something different. one thing i think is clear, and it's probably the area where yellen has the most scope for making a difference, for improving the quality of policy, a better coordinator with the fed. the current treasury secretary coordinated well in the spring, but now not so well. i think under yellen, coordination will improve and will remain strong as long as she is in office. so that is good news because, hey, if you think about it, this coordination we saw on the spring worked spectacularly well in terms of insulating the real

economy as much as possible from this shock. so, more of that i think will be iqualified good news, and think we can look forward to it under yellen. haidi: needless to say if she is confirmed as treasury secretary, you do expect a greater degree of coordination between treasury and the fed. what is she expected to advocate for, in your opinion, in terms of the range of these programs and whether at the end of the day by the time she takes the helm, whether they are still needed? roberto: there is that unknown of course, but probably they will not still be needed. i am pessimistic that come next year magically the virus disappears. so, it will be a long process. it will still be needed. -- withg she can do is the money that maneesh and took away, because under the law, once the fed gives back the money, the treasury cannot back

after january 1. there happens to be other funds available that the new treasury secretary can use for several purposes, including restarting some of the facilities that the secretary and the fed deemed more useful. so, that is one thing. i think yellen could work with the fed to try and target groups directed at the that most need it, for example. some funding for lending. so there are creative things that can be done, and i think yellen will be at the forefront of those attempts. shery: roberto, happy thanksgiving. we are officially starting the holiday shopping season. what do you expect to see, and how important will this time be? thinko: well i mean, i the holiday shopping season should be, by all indications, a

pretty good one. again, which is unqualified good news. i think the good thing is that jobs are coming back. unfortunately not as fast as they should, with the stall in claims. but they are coming back. of course the government support was very strong. unemployment benefits have not yet run out. so, these are all good news. i think the question is what happens longer-term, especially in the next year, in the absence of additional fiscal support. but for now, i think this holiday shopping season should be encouraging. head of global policy research, roberto perli. let's get in the first word headlines now with karina mitchell. karina: in time for the holiday season, the u.s. is stepping up pressure on china and russia, sanctioning five countries it

accuses of helping to promote iran's missile program. an administration official warns further penalties are in the pipeline. the treasury is said to be ready to announce additional measures against tehran in the coming weeks related to arms, weapons of mass destruction, and human rights abuses. china has broken his official silence on joe biden election victory, sending gratulation with president xi saying he hopes the two will be able to manage differences. chin losses the president wants healthy and stable relations with no conflict and no confrontation. earlier message simply said china respect the choice made by american voters. president trump has pardoned his first national security advisor michael flynn, who admitted lying to the fbi about a conversation he had with a russian about that are. the president had portrayed flynn's prosecution as evidence of a broader conspiracy. nancy pelosi says the pardon is quote, an act of grave

corruption and a brazen abuse of power. and one of the world's greatest soccer players, diego mayor donna has died at the age of 60. he suffered a heart attack after recovering from surgery to remove a blood clot on his brain. he captained his country to a 1986 world cup victory, but struggled to cope with fame and battle addiction for years. the government in buenos aires had declared three days of national mourning. 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. mitchell. this is bloomberg. shery: let's take live pictures of glynis aris, where maradona fans are gathering at the moment, many of them wearing t-shirt, and white symbolizing the soccer player's colors. we can see a lot of people in buenos aires mourning the soccer legend who died at the age of

60. this is bloomberg. ♪

shery: here's a picture across markets in asia. we are seeing a broad downside when it comes to the asx 200. kiwi stocks also down, .2%. the of course as we see

kiwi dollar hovering around a two-year high. we have seen a rod of -- a lot of risk-on sentiment, but u.s. stocks faltering on wall street, although u.s. futures are slightly higher. let's turn to some geopolitics. the chinese foreign minister has landed in south korea after eating with japanese prime minister yoshi haim assumed in tokyo. he's in seoul to discuss a range abide lateral, regional, and global issues including north korea and the new u.s. president-elect joe biden. joining us to discuss is college professor of political science, catherine moon. thank you for being with us. let's discuss first what is happening in the china south korea front. of course south korea in the middle when it comes to its alsonce with the u.s. but its trade and economic partnership with china.

what would a president biden administration bode for this relationship? >> i think both south korea and china would welcome the biden administration's assumption of power in january, especially for south korea. the trump administration has been a turbulent ride. tendencyf mr. trump's to alienate and sideline allies with whom we have military security treaty obligations, this has been a problem with dealing with south korea. for the south koreans, they have come to see the u.s. as unreliable, even unstable under trump's leadership. seat, with biden in the and the white house seat in january, south koreans will welcome a return to normalcy and stability. professor, just hold on a

second because we are getting breaking news. we are seeing that south korea 500reported five more than daily coronavirus cases. beenumbers have really pretty high and this tally would be the highest since south korea's second wave from the religious sect outbreak from early march. now south korea's daily coronavirus cases exceeding 500 for the first time since march, coming at a time when the entire world now is seeing a surge of coronavirus infections. south korea seeing more than 500 cases now for the first time since march. professor, going back to you, of course south korea faces its own domestic issues, but at least it came to how president moon jae-in handled president trump during his talks with north korean leader kim jong-un, moon got a little bit of praise from the domestic media for how he

was able to balance that relationship. where can we expect that going? because of course it was also very interesting how that meeting with trump provided legitimacy to the north korean dictatorship. i do not think, that with a biden administration we are going to see that kind of glitz as diplomacy. what mr. trump did was not really diplomacy, because there was no real roadmap of where he wanted to go and what he was willing to give up, and what he would demand from the north korean side. and most of all, the singapore and the hanoi attemps caught the world's attention, but it did not catch the kind of commitment or preparation in the state

department, the national security council, etc. they were not prepared to actually move this show along. so, with a biden administration, i think we will see much more working level activity, professionals and experts in place who will assess some of the positives, the legacy that the trump administration will leave behind, as well as a return to the kind of traditional diplomacy that we're more familiar with. the bidenhink administration will take very seriously the need to enforce certain kinds of sanctions, while at the same time, looking for areas where some sanctions relief might be necessary to support the livelihood and care of the north korean people. haidi: what are your expectations for a hopeful

normalization of the relationship between beijing and washington, at least in the way that that relationship is managed? and what are the implications for players like south korea? katharine: well, south korea has to straddle china and the u.s.. south korea counts on the united states for security guarantees, especially the nuclear rollout, given that new -- that north korea is a nuclear state. but at the same time, south korea lies on china economically --relies on china economically. they are their number one trading partner. more importantly regarding north korea, china ensures the economic survivability of the north korean people, as well as the north korean regime. south korea does not want to see an economic, and therefore regime collapse, anytime soon. there are some people who think in south korea that that would be desirable, but the vast

majority do not, because of the potential destabilization within south korea, as well as on the peninsula, that would ensue from a north korean economic, political collapse. so, south korea needs china to help maintain some semblance of southin north korea, and korea will continue to balance both the u.s. and china. i would hope that with a biden administration would come a reduced level of the harsh rhetoric, the fighting words, so to speak, that the trump administration has become famous for vis-a-vis china. even though we do have serious issues with china, we do not temperature, the escalate the rhetoric, and push not only china up against the wall, but really our allies. the u.s. trade war, the steep on items like steel for

example, hurt south korea as well as western european allies. canada, also. not just china. the biden sense, administration i think would be much more nuanced and careful to be clear who are our friends, at the our allies, and same time be very clear with china where the boundaries are, especially in terms of the south china seas issues, and the east china sea disputes our allies have stakes in. college professor kathleen moon -- katharine moon joining us. exclusive why -- that interview is next. this is bloomberg. ♪ is bloomberg. ♪

believes demands for air travel will return and greater volumes than ever next year once the world moves past the current phase in the pandemic. he has been speaking exclusively to bloomberg. list will put on the u.k. of countries that did not have to quarantine when they arrived.

an enormousggered increase in the velocity of looking, predictably from the middle of december on. in all cabins. and that is not to say -- busi ness class is very strong, but don't forget, our business class is a little bit of a misnomer in the sense it seems everyone using our business class is traveling for business. well, they are not. there is an awful lot of business in multiple segment which are not business-related that occupy our basis cabins. at the moment in the holiday period, they are from a leisure. -- they are primarily for leisure. >> in terms of benchmarks, you had 11 daily flights in march, 2019. when do you see getting back to that? >> if you are talking about the u.k., by the end of next year, to all the flights we had in place.

all of them we intend to put back. >> any other bubbles in the pipeline? >> not that i'm aware of. but we just wait and see what happens. reporter: space is a premium. youext year the year that really have got to deliver a premium economy cabin? where are we with that? >> we are receiving our first 380 leader in december, which has the premium economy cabin. this whole process was already planned. was put on ice because of what happened. we will restart that in 2021. reporter: what scale can you get to? you have two before the end of the year. >> actually three. reporter: what about 2021? >> we have to get a critical

mass of aircraft that we can make a meaningful use of those. but i would say by the middle of next year, we will roll it out and hopefully start it on some routes by the end of next year. reporter: you talk about business class being full with all different types of people. i was reading bill gates. he said post-covid, we are going to see at least a 50% evaporation in real business class. i.e., i have to do a meeting, i have to do a schedule. that will drop precipitously. do you share that? what is your worst-case scenario on that kind of business? >> i do not share that view at all. i think i'm on record as saying it's likely that as a result of what has happened, that business will actually increase. and all the segments will return, and with greater volumes then we have experienced before. so no, i am not in that school at all. shery: here's a quick check of

the latest headlines. dropric vehicle stocks amid fear a rapid rally may be coming to a halt. tesla recovered, while smaller rival nicholas slumped as he ministers evaluate this here's surge. the ceo failed to offer any news on their partnership talks with general motors. the world's largest maker of agricultural machinery is predicting -- projecting higher-than-expected earnings. they served as a bellwether for the foreign economy and the wider manufacturing sector, and surged almost 50%. worldwide equipment sales are expected to increase by up to 15% next year. senior executives at bank of america are said to be considering keeping the bonus pool for sales and trading at last year's levels, despite a 20% jump in revenue for the first nine months. executives still have time to lobby for an increase, and a

final decision has yet to be made. will be joined by the america chamber of commerce in hong kong. this is bloomberg. ♪ ng kong. this is bloomberg. ♪

shery: welcome to "daybreak asia ." i am shery ahn. haidi: i am haidi stroud-watts in sydney. asia's major markets have just opened her trade. our top stories this hour, interfacing a cautious start -- asia facing a cautious start. the dollar index below 92 for the first time in two years. president xi congratulates joe biden, saying he hopes they can

manage differences. he's calling for stable relations. thailand turns -- after thousands of protesters rally outside. it had to close it bangkok headquarters -- it's bangkok headquarters. sophie. sophie: tepid moves expected in asia after the reopening trade stalled in the u.s. and europe and in japan, we are seeing downside moves to both the topix 225, which is halting a four-day gain, calling into question of stocks have topped out. we are seeing action in forex markets as well. we could have and month -- end- month flows driving forex markets. we will be watching for any developments when it comes to expected issuance on that extra budget, pending details on that. there is a key meeting this

thursday. whipping the board to south korea, we are waiting on the bok policy decision. we will see if there's any implications for growth and inflation forecast. the kospi adding .2%. we are seeing strength come through for the korean won an appreciation in the currency may be in focus as well. it is the best, for asia this quarter. that's check in on aussie stocks which have been fluctuating this morning but halting a three-day gain. the asx 200 is still set for the best monthly advance on record. energy names are under pressure. i want to highlight that. despite the way we are seeing the oil patch kind of stay firm, new york crude staying above $45 a barrel after clinching a five-day gain. as the best winning streak since may. we are seeing dollar weakness coming back into the fray.

bloomberg dollar index trading near an april 2018 low. s&p e-minis picking up ever so slightly. fromt to end on a call credit suisse, favoring asia given the optimism over the vaccine and a recovery. they are liking undervalued sectors for the likes of travel, energy, and financials. this on a potential ketchup play to pre-virus levels -- catch up plato. pre-virus levels. shery: let's bring in sean darby. always great having you with us. the cyclical rally taking a breather but that momentum took some of those northeast asian stocks higher this entire month. given that we have seen so many fakes recently when it comes to cyclicals and value stocks, how sustainable is this, especially with virus cases surging? question.a very good

i think you have a perfect combination at the moment where you have a massive restocking cycle, principally driven by global auto and housing booms. weak dollar a very which is generally positive for global trade and the fact is, beenorporate sector has very well behaved in terms of insolvency and ability to raise been and hence it has not in a savings virus which normally happens after some credit shock or indeed a recession. the uplift in the cyclical trade is very much intact. i would also add that when you look at the economic forecast for next year, countries like china are growing at 8%. indonesia, 6%, philippines, seven. vietnam, just below seven. what the markets are doing at the moment is discounting a lot

of that growth in 2021, and i think, as i said, it's a pretty healthy set up compared to when people were positioned in late march and april. shery: we have seen a lot of strength of the korean won and the japanese yen is always vulnerable to potential safe haven moves. how could that deter the attractiveness of these markets? a very good question. in normal circumstances, we would be starting to get quite worried about the rate of appreciation of these currencies eating into profits but also eating into competitiveness. the really big difference has been -- we had the strength of the chinese currency in the backgrounds which is pretty much the price set for exports in the region and providing china's currency is strong and the dollar is weak globally, then the share of export -- of the export pie is still glowing.

profits may not necessarily be as strong as they would be coming in normally, maybe in q1 and q2, we see a drop in the level of profits for the strength of the local currencies but the share or volume of exports will actually be increasing and that is again why the markets have been relatively resilient despite the end strength. chart take a look at this as we continue to see new highs being climbed by asian stocks. equities in this part of the world, particularly across emerging-market names, are outpacing the gains in europe and certainly doing better than a great part of the rest of the world. how much does that really rely on continued weakness in the greenback? is it the anchored position of the chinese yuan, the recovery in china? is that the more dominant theme? sean: very hard to determine

which is driving which. it's not just that we have a weak dollar, but real interest rates in most parts of the world , particularly in the united states, are negative at the moment. there is not much incentive to be holding cash at any of the major developed markets firstly, and secondly, we have to asia has the bulk of the global savings here. we run current account surpluses. ofare enjoying the sunshine export revival and pickup in growth. that philosophy of money tends to move through financial assets much faster than it would do to the developed economies. hence, that's why we are seeing such strong equity rallies alongside strong economic data. we need to respond quite quickly to any sensitivity in changes there. macro data. japan is looking so

inexpensive compared to everyone else. an upside to the tune of 40%, do you think? sean: the interesting thing about japan is that if policymakers are going to run economies hot for an extended period of time, to make sure they have really defeated the virus economically, japan is pretty much leading the pack in terms of its monetary stance. money supply is running close to what it was during the boom times of the late 1980's, early 1990's. during that period of course, japanese asset prices appreciated very aggressively. the backdrop at the moment for japanese equities is pretty much similar to what occurred during that period. again, we have this big export .evival

if anywhere in the world is orng to have a semi-bubble very big asset rise, it would be japan and the policy-setting is pretty much almost replicating what we saw in the late 1980's. from jeffries.by let's get you the first word headlines. karina mitchell has those from new york for us. karina: the u.s. is stepping up pressure on china and russia, sanctioning five companies that accused it of helping iran's missile program. and administration official warns further penalties are in the pipeline. the treasury is set to be ready to announce additional measures against tehran in coming weeks. related to arms, weapons of mass destruction, and human rights abuses. president trump pardoned his first national, michael flynn, who admitted to lying to the b.i.. the at -- the fbi. he said it was evidence of a

broader conspiracy against the white house. nancy pelosi said the pardon is an act of grave corruption and brazen abuse of power. global reported coronavirus cases have topped 60 million with infections soaring in the american southwest and rocky mountains as people defy warnings against traveling for thanksgiving. relaxingean union says curbs swiftly could unleash a new infection wave. there are many says restrictions may have to remain until the new year. it's partial lockdown has been extended to december 20. south korea's number of daily confirmed virus cases has exceeded 500 for the first time in about eight months. health minister says the spread among citizens aged in their 20's and 30's is worrisome. the government is urging people to cancel get-togethers and appointments until the virus situation subsides. bank of korea is set to deliver it last rate decision within the next hour. 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. lamy: still ahead, carrie plans to further align hong kong with the mainland to lift its ailing economy. we will get the reaction from the american chamber of commerce in hong kong later this hour. up next, xi jinping finally congratulates joe biden, calling for cooperation towards a healthy and stable relationship. what now for u.s.-china relations? this is bloomberg. ♪

haidi: xi jinping has broken his silence on joe biden's victory, saying he hopes the two can manage differences and focus on cooperation. bloomberg foreign policy reporter is in washington. no doubt we have seen careful watch and wait and see approach

from beijing, given that very early on, we had congratulations from a lot of the other world leaders including america's allies. president xi waited until now. what did he have to say? >> he said essentially they want a situation of non-confrontation which has really been the watchword for china and something they want to avoid, essentially a repeat of what happened in the trump administration. i remember early on in the trump administration, speaking with chinese officials, and they were asking, you know, do you think there will be a trade war? do you think it will get as bad as the trump administration is suggesting? the answer has been an unequivocal yes. the reason why there was this toay from xi jinping now offer congratulations was that he was wary of inserting china in the middle of the back and forth between president trump and joe biden. obviously, there was some question about whether the election was going to be

conceded by the president. he has not done that yet. but with certification of votes, it looks clear what is going to happen. china did not want to be a political football in this and wanted to wait until things became more clear. shery: we continue to have tensions over tiktok's chinese owner having to sell the app. it has been given one more week to finalize that sale. there were expectations that perhaps this whole deal would come within president biden's lab. when are we expecting to happen -- lap. what are we inspecting to happen? nick: just the idea that the trump administration is looking to keep postponing this. tiktok is something that has fallen completely off the agenda for president trump. a month ago, six weeks ago, all we were talking about was tiktok and how the president and his team wanted to get tough on this

app and they saw it as a major threat. what you are seeing now is it's just completely off the agenda. the president i think, his advisors on all sorts of issues are having to faculty -- having difficulty getting attention. tiktok is not a priority. shery: bloomberg foreign policy reporter nick wadhams with the latest on u.s.-china relations. he sees a strong recovery in the second half of next year despite the current uncertainty in the economy. macleod software company reported earnings that topped third-quarter estimates and saw software-as-a-service revenue soar 44%. into next year, we said, hey, we still see that the economy has a lot of the first half is a bit more conservative, more recovery in the second half.

second issue, we are leaning hard into our transformation. with that, when you move to a subscription model, you get less upfront. the lifetime value of the customer is better. that is depressing near-term earnings and revenue growth rates, still to be the two big factors. we are excited. it's fast to the future. we are taking this covid pandemic crisis and we are saying we are going to go faster to drive that transformation because we see that is overall where the market is going on we are going to transform our business to be a unique provider of on premise and cloud delivered services, a real hybrid offering that we are uniquely positioned to do. >> when can we expect the uptrend of that? pat: we see it as a three year cycle. as we are pricing to go into that smile more aggressively next year, the second and third years look better when you are coming out the other side and the businesses you built this year are accelerating.

the margins improved. it really is this three year picture. still choppy economy. we are taking the opportunity to go faster into this smile. >> with that margin outlook, how much of that in terms of the mix of the margins comes from investments in marketing or perhaps high earnings? pat: we have continued to invest this year, planning to continue to do so next year as we build our team. the staff model does have more customer success requirements. because you have a little order, you get them on the product, and then you have to grow it over time. you are much more in partnership with the customer to drive their success and that drives the upfront costs of a staff business so we are making those investments as well. overall, it's a bit investment heavy on the front end. the customers who were coming on our offerings, 40 4% growth rate this last quarter, building on very strong growth all year

long. we are quite optimistic of where our customers and where the puck is going. >> the guidance is conservative. i wonder why the conservative guidance? i think everybody looks and says we are confident in our guidance. we have been a better predictor of the future, where the markets are going, and overall, against that, they are saying in that high single digits range, they are expecting a little bit higher. as we looked at it, i think everybody is maybe a little bit too euphoric on the economic outlooks. we still believe we have a long way to go until there is a broadly deployed vaccine. all of that taken together, we are comfortable with the guidance we have given him and we have a great track record of being able to deliver against what we say. that was pat gelsinger speaking to bloomberg's taylor riggs. coming up next on daybreak asia, thai police revive tough laws

against defaming the monarchy as they target the king's wealth. we get more on that, next. this is bloomberg. ♪

>> police in thailand have revived tough laws against defaming the monarchy as protesters rally again. warrants have been issued for 12 royal for insulting the family. pro-democracy protesters targeted the king's wealth in their latest -- gathering outside a bank. a reporter joins us now from bangkok. what is significant about the latest protest that we are seeing? shows that they protesters are now being more specific about their demand and what they want to see with monarchy reform. yesterday, they chose to focus on his wealth, which has become a key focus for protesters.

they are against legal changes after the king ascended the throne that give him the power to put his name on crown assets worth tens of billions of dollars. some of those assets included holding the prime properties in bangkok and shares in companies like the bank where protesters gathered last night. has the monarchy or the government said about this so far? week, the prime minister warned them that the government will enforce all laws thelable to deal with protesters who broke the law, and as we know, insulting or criticizing senior members of the world family in thailand can lead to long-term jail sentences. received summons from police on charges of oil defamation. .- royal defamation

this is the first time they have been using this harsh law in july. haidi: where to next for the movement? randy: i think we are definitely going to see further escalation of the protest movement in thailand and more crackdowns and more arrests by police. it does not look like these protest movements will go away anytime soon. now to be sure, we are unlikely to see the monarchy move forward in thailand anytime soon but what this movement has done is basically breaking taboos and making it more common for people to discuss issues publicly. haidi: randy thanthong-knight joining us from bangkok. here is a quick check of the latest business flash headlines. the indonesian lenders are pushing back against official pressure to again lower interest rates to help pull the economy out of recession. they say the problem is customers do not want to borrow with loans shrinking for the first time on record. thank indonesia says that is due

to a risk-averse attitude as lenders -- that could have been avoided had they cut rates in line with central bank easing. it has left them wondering what they need to do to lift bonuses. after record years, senior executives are said to be considering keeping the pool for sales and trading at last year's levels and that is despite a 20% jump in revenue for the first nine months. tocutives still have time lobby for an increase and a final decision has not yet been made. ibm is planning to cut 10,000 jobs in europe as it cuts back on its ip services business in favor of ai and the cloud. the wide-ranging losses will affect about 20% of staff in the region with u.k. and germany to be hardest hit. most jobs will be lost from legacy services such as day-to-day infrastructure operations and data centers, and the unit will be spun off next year. computingloud

division suffered an outage that affected several customers including hardware maker roku and adobe. says thatrvices page the streaming operation has been eastern u.s.,e making it harder to host status updates. it hit customer ability to use a range of services. the digital photo service was also affected. slack technologies soared by as much as 32% after the wall street journal reported it has been in talks to be acquired by salesforce. the software maker developed platforms for messaging and filesharing and has a market value of around $17 billion and would help salesforce compete with microsoft. slack's stock is still 25% below its peak. let's take a look at a

sluggish start of trading in asia. u.s. stocks looking flat going into that thanksgiving holiday on thursday. the nikkei 225 seeing outside of .3% as we get news that the sovereign wealth fund gpi is pulling out of some of its stock holdings to rebalance the portfolio. mccloskey is holding steady at .1% and we are starting to see signs of a bearish reversal with the spike in virus cases and we are expecting the bank of korea to keep rates steady potentially this hour and taking a look at the broader picture when it comes to the markets here in sydney, we are still not quite at the erasure of the 2020 losses today. coming up later on bloomberg this morning, we will be focusing on the outlook for india's manufacturing sector and will be joined by the ceo. and are a leading energy environment solution provider. coming up next, carrie lam lying beijing and her

policy address. we get the reaction i from our guests. this is bloomberg. ♪

shery: right, we are now seeing the aussie dollar unchanged at the moment but this of course coming at a time when the asx 200 is under a little bit of pressure, still at the highest level since about february. we are getting the third quarter business investment numbers, a contraction of 3% quarter on quarter bigger contraction than

was expected. becausern to hong kong carrie lam will answer questions later on her annual policy address where she outlines steps to further integrate the economy with the mainland. for perspective from the business committee, we turn to robert greaves, chairman of the american chamber of commerce in hong kong. thank you so much for your time today. what did you think, first of all, your reaction to the policy address? two hours long, 24,000 word speech. did you find anything that gave you hope about the city and its economy? robert: thank you for having me on. we were happy that chief executive delivered her policy address finally and we hope that helps in some way to restore confidence and business in hong kong. we would have liked to have seen more about public-private partnerships. we think it has a role to place.

we would have liked to have heard more about that. we would have liked to have heard more about the gba, what the plan is, what the integration plan is looking like for hong kong. we also would have liked to have seen more about local livelihood. how our young people going to be trained? -- are young people going to be trained? as a broad, i think, brush, we would have seen more if theombating covid and governments have any concrete steps to do that. shery: what we did not see during the speech this year was opposition lawmakers trying to get to the chief executive. it was a very different mood from what it was last year so in that fence, that political tension seems to have died down. because of beijing tightening its grip on the city, how do your members feel about doing

business in that environment? on the one hand, you have less protests. thatave less of that fight you have seen in the streets for over a year. but you have beijing tightening its grip. is a very good question, one that we get asked frequently. our members are here because they want to do business in hong kong and greater china. it's a great place to do business, such a great environment, lots of talent, well-developed supply chains and resources, so our members want to be here. be here probably through thick and thin unless attenuated foroo them to stay. gohink it depends if you sector by sector. the tech companies, google, facebook, those people, they have real concerns about freedom of speech curtailment, any sort of limits on that, and how they are going to relate to the government going into the

future, so you have to take it step-by-step, but by and large, we don't see anyone leaving right now. our members want to be here. members aref our not american. they are international companies. conversely, what proportion of your membership are you seeing actually just lean into the closer cohesion with the mainland? robert: i think that is another good question. they would love to lean in -- they are ready to lean in. we do have a roadmap. we don't have a lot of details. i have a little cheat sheet here but there's some areas where the government could improve. they were really -- not really discussed in the chief executives policy address, gender diversity, age determination, digital free

trade agreements, simtech. there's a lot of areas where we would like to see more information and conversation around so our members could engage more. beyond the changing nature of what hong kong might look like over the next two years, i'm wondering how the pandemic and the closing of borders, the changing nature of globalization, has impacted your members? robert: it's very hard to get the talent that some of our members want in for a variety of reasons. one is that perhaps there are visa issues. there is of course covid and testing. and then there are people that wanted to come to hong kong, but the whole covid situation has put them off so they are staying put in their respective countries. that's probably the biggest impact so far. shery: in what sectors are most

of your members and which sectors are feeling the biggest hit for this pandemic and political tension induced economic slump? of -- acrossa bit the board. we are in everything from health care to manufacturing to apparel to tech, as i mentioned before. it is a range. we have a broad and diversified membership and everyone is feeling the pain a little bit. but we are all trying to stay the course and be here for the duration. shery: how do you feel about hong kong's future as a financial hub? especially when you are seeing more mainland cities emerge and be supported by the beijing government when it comes to those financial exchanges? robert: ok, so this is where i'm putting on my bullish hack. i'm optimistic about the future of hong kong as a financial hub.

it's one of the largest stock exchanges in the world. etf connect coming up. it's just too big to ignore. diversified. common law, rule of law, transparency. that's very hard to find elsewhere in asia and in china. i think the future looks good. roadblocksrt-term and challenges. but overall, the future looks pretty good for hong kong. shery: it's role was kind of having this portal to the independent and entirely separate and individualistic. is there a risk that this is now being lost and what are the implications for people who chose to invest, chose to make their homes and businesses there because it was not another

chinese city? >> there is always that risk of course. anecdotally, i know families that left hong kong for a variety of reasons including education, but the fact of the matter is that you have this great channel of hong kong and money flows in and out. there is the legal infrastructure here, the financial infrastructure is very developed, so people will continue to do business in hong reallyven if it is -- i do not like this phrase, but people use it. it's just another city in china. i think people will still be here and want to do business here because the opportunities are too great. shery: robert greaves emigrate to have you -- robert grieves, great to have you on. we have breaking news out of south korea. the bank of korea has left its key rate unchanged at .5%.

19 economists surveyed by bloomberg were expecting no change so as expected, nothing has happened on the bok side. they have already cut 75 basis points this year so far so the expectation was that they have reached the end of the rate keptng cycle that has steady since may. we have seen more optimism about the economy via consumer sentiment hitting a 10 month high. we do have a third wave of covid-19 cases underway. plenty more to, on "daybreak more- more to calm on -- to come on "daybreak asia." ♪

karina: you are watching "daybreak asia." i am karina mitchell with the first word headlines. policymakers discussed providing more guidance on bond buying at the meeting earlier this month. many officials dodge there might be reason to enhance guidance fairly soon and that guidance on asset purchases should imply increases insecurity holdings would eventually taper off. the fed is scheduled to meet again in the middle of next month. the european central bank's warning lenders will have to set aside more money to soak up losses when government pandemic support ends and the economy tackles massive debt. the ecb says it is lower than previous cases and below those in the u.s. the bank is concerned that once

emergency aid is cold, companies will struggle to cover repayments and add two stress. malaysian government faces a vital test. plans for the country's biggest ever budget come with them holding only a slim majority among lawmakers. it would be unprecedented for a sitting prime minister with spending plans are seen as a test of confidence in the government. they have gathered in plano aires to honors one of the world's greatest soccer players. he suffered a heart attack after recovering from surgery to remove a blood clot from his brain. struggled to cope with fame and battled addiction for years. the government has declared three days of national mourning. 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. back to the breaking moves from moments ago. the bank of korea kept interest rates unchanged and right now, is projecting growth for 2020. gdp seen at a contraction of 1.1%. this is revised upwards from what they projected back in august and that was a contraction of 1.3%. cpi at .5%,o seeing which is slightly higher than the projection of 4%. 2021 gdp growth at 3%, which is also revised upwards from august. let's cross to our chief asia economics correspondent, enda curran. what do you make of that bok keeping rates steady at a time when we are continuing to see

these virus cases surging? enda: it's a moderate tone. thebank was able to stay on sidelines today because the economy has been -- somewhat recently. we know exports have been rising. consumer, vince has been improving. we also have a resurgence of the virus. south korea has been successful in controlling it. we have the strengthening won that is hurting exporters. of course, there is a lot of pressure now on central banks to do more to aid the jobs market. theightly better tone from bank of korea's forecast for next year and clearly, they feel comfortable enough. at the same time, there is a way to go yet and nobody can say the central bank will not have to ask for support here at some point. certainly how much of a

concern is this new wave of coronavirus cases that we are seeing? enda: it's probably going to be something of a standout and what to watch for the rest of the world in some respects because south korea has been ahead of the curve in terms of controlling this. we know that consumer confidence has been doing well. now this outbreak turns into something bigger, something of a wave. of pressuret a lot on south korea's economy at a time when it's already under pressure from the stronger currency and at a time when the global outlook is pretty shaky. gdp -- south korea's exports alone. when you factor in these forables with the outlook global growth and if the virus outbreak sets back the domestic recovery, it could be a factor that they do more in the coming months. them jump earlier

this month, adding to the policy headache. the debate around adding jobs stability is part of the bok mandate. is that something that would help? enda: it is an interesting one. several banks around the world are under pressure to broaden their mandate and look after parts of the economy. this is happening in south korea, too. despite the recovery, jobs are still being lost and lawmakers are pushing for a revision to the bank of korea's act that would improve stability in their mandate. we don't know too much in terms of how the bank will respond but we know governor lee did appear at the parliamentary hearing recently. super worriednd that the bank of korea could do much in terms of supporting employment. more from might hear him in the press conference is coming up later and see whether or not it's a viable idea in

terms of whether south korea can expand its mandate to include jobs. very: south korea, export-dependent economy. their trade members have been doing great, rebounding, but at the same time, the korean won has been strengthening again, topping a two-year high against the u.s. dollar. how is that going to affect the economy? enda: it is one of the big variables, one of the best-performing currencies this quarter. thes doing well because domestic economy is improving. it doing well because its biggest trading partner, china, is enjoying a steady recovery. of course, the foreign inflows -- investors are looking for yields, buying stocks. complainings are that it will impact exports going forward from here. saidinance ministry has

they will take whatever steps are necessary. we will have to see what he has to say about it but it is a paying factor and its one of the pressure points that we think will keep nudging the central bank or finance ministry to keep doing what they can to support the economy because you have one being strong now, coronavirus researching again, uncertain global outlook again because of what is happening with the coronavirus in europe and the u.s., so by no means is south korea out of the woods. when you consider its own virus outbreak at home and what that might mean for the consumer recovery story, it will be facing uncertainty as to get through the winter. enda curran with us. take a look at how we are doing when it comes to the korean currency. we heard the bank of korea keeping rates on hold. we are continuing to watch that

worrying concerns of over 500 new covid cases are being reported. the japanese yen also and focus along with the dollar, seeing this classic risk-on environment translating into a bearish bias for the yen and the dollar. the dollar has been holding at about a two-year low. we are also watching that strength potentially coming back when it comes to the kiwi as well. that currency trading at the highest in two years this week. china'sp next, some of simtech giants are rethinking ipo and other fundraising plans. regulators ramping up scrutiny. we have the details, coming up next. this is bloomberg. ♪

shery: here is a quick check of the latest business flash headlines. pay 50 milliono australian dollars for using unfair tactics when selling mobile products to indigenous people. the competition and consumer commission found that staff at five stores signed up 108 customers to contracts may could not understand or afford. if imposed by a court, it would be the second-highest find ever under australian consumer laws. electric vehicle stocks emerged amid fears a rapid rally may be coming to a halt. tesla recovered from early losses while smaller rival nicola slumped as investors

reevaluate this year's surge. on cnbcsell appeared but failed to offer any news of the bumpy partnership talks with general motors. electric vehicle stocks soared after news that tesla will during the s&p 500 next month. the world's largest maker of agricultural machinery is projecting higher than expected earnings for the year ahead. it serves as a bellwether for the economy and the wider manufacturing sector and it surged 50% as demand holds up despite the coronavirus pandemic. aredwide equipment sales expected to increase by up to 15% next year. more chinese simtech giants are scrambling to rethink their ipo's amid increased scrutiny from chinese regulators. our reporter, julia, has this group. in the aftermath of the disastrous results with ant

financial's regulatory dressing down, is it changing the way that the likes of others are approaching their fundraising plans? julia: yes, it definitely is. it's in an interesting position because it went public before the rules were actually clear or as they were being formulated. the ipo in shanghai in september, it's now weighing changes to its listing, discussing options with shareholders because of these regulatory changes. also its target of debuting in the first half of next year is not looking so certain. did manage to complete its ipo successfully but its stock had been seen wild swings. it has been a -- it has become a target for short-sellers. -- it did goas public at a lower valuation than the one it achieved at a lower

around so that's a sign of the weight of these changes. on the simtech giants. publicso it's going before the rules were clear. how is that affecting it now? julia: as i said, the share price has fallen. it has been volatile. short-sellers are sitting to circle around it. during its investors roadshow that it planned to move to increase the proportion of loans -- of loan risk it carries to 20% from the current roughly 2% it has, which was similar to it allows existing shareholders to swap stock in case they suffered losses given that it was going so it and lower valuation does seem as though it might be a rocky road ahead and obviously, should there be more

changes, should the rules be finalized or changed further, it could also see more volatility in the stock price. why the timing of this and what are the prospects for ant financial to be able to get on regulators good side, getting that listing back on track? is, it isthe timing interesting timing. obviously, financial stability is very important to the chinese regulators, and they feel that these online players have been allowed to grow so large like ant, so successful, without being regulated. that is the shock suspension of the ant ipo coming at the time it did. expande been allowed to massively. we are getting clear signals from the top.

they need to be regulated more like traditional banks. we will see lending caps, requirements to boost their capital. to the fact point that they will not be allowed to expand maybe at the breakneck pace before or expand outside of traditional financial rules. .hery: julia fioretti we will have the outlook for simtech later with a founder and ceo, simon. and that is it from "daybreak asia." our markets coverage continues as we look ahead to the start of trade in hong kong, shanghai, and shenzhen. standby for "bloomberg markets china open." this is bloomberg. ♪ businesses today are looking to tomorrow.

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