independence with peace of mind. call to receive $1,000 off your kohler walk-in bath. and right now we're offering no payments for 18 months. haidi: good morning. we are counting down to asia's major market open and. shery: welcome to daybreak asia. our top story this hour -- caution as investors weigh rising virus numbers across the u.s., stalls of a stimulus talk in washington and fears of more social restrictions. thei: the u.s. china for crackdown in hong kong.

all targets are people on the national people's congress standing committee. shery: brexit talks enter the final rounds with boris johnson going to brussels. is thesays wednesday final cut off. haidi: a truly a coming online. let's get straight to it with sophie. stocks, butian australian bucking the trend but not today. , under pressure including bhb and the aussie dollar retrading from the overnight high that we saw while bonds are gaining ground. nikkei futures in chicago under pressure ahead of a bunch of japanese data including a final read on third quarter data and waiting for the latest virus relief package which is said to be worth $700 billion.

of trading asia, we are seeing downside moves for contract after the benchmark s&p fell overnight but the nasdaq did see coutts some gains. choppyut the pound -- a trade for the sterling as brexit talks are ongoing. couldrd charter saying it rise above 135 if a deal is struck. keeping an eye on the oil patch -- extending losses after it halted a three-day gain as demand risks are being weighed against a vaccine rollout. despitesteady, below 62 renewed u.s. sanctions on china which did help the dollar each out the first gain in five sessions. yuan, 650 as to the

level we are watching. we can't rule out pboc. haidi: the trump administration is trying to put pressure on beijing over its crackdown in washingtonith sanction thing -- sanctioning 14 chinese officials. sanctions likely to stick? next month there will be a new administration in the white house. >> isn't that the underlying question? i'm sure beijing is considering it as well. will these new sanctions coming daysthe pike in the waning of the trump administration still hold water following january 20? joe biden says he wants to keep up the pressure on china over hong kong, however signaling they would not act unilaterally

as the trump administration against china. so it is still wait and see. once we get more indication on from thepolicy will be biden administration. this latest round of sanctions targets 14 vice-chairman level individuals at the national people's congress standing committee. that is the body that oversees the national legislature throughout the course of the year when the legislature is not in session. so the standing committee is the the most handed down recent laws on hong kong, including the national security law. 13 men and one woman will be sanctioned with asset freezes and travel bans. the chinese government got wind of this yesterday when the story started emerging, so before the official signing came from the u.s. government. the spokeswoman in beijing said

there would be countermeasures should the u.s. continue down this so-called wrong path and as we got news of this yesterday, hong kong stocks with this story as well as the news the russell, out indices will be taking eight stocks from their global indices because of the trump man on americans investing in companies that have ties to the chinese military, alleged ties, i should say, that sank hong kong stocks, falling as much as 2.2%. there is speculation the trump administration in its final months in office could target financial institutions, so the banks took it on the chin yesterday. more details emerging on the freezing of think accounts tied to a former hong kong lawmaker. what do we know about this? >> this is another story

building over the last couple of days. he's a former legislative council member and did flee to the united kingdom. he claims his bank account of his wife and parents were frozen not only at hsbc but other accounts in the city. there are local reports there was a temporary unfreezing of the accounts where the family was able to dig out all or some of the funds but still, the police have again asked hsbc and other banks to refreeze those accounts. superintendent in charge of the national security department in hong kong is saying they are investigating past crowdfunding endeavors on allegations or suspicion of possible money laundering as well as collusion with foreign forces. that is why they requested those to be frozen. media, ted iscial saying this is a situation that

erodes the faith in the city's banking system. a response from hsbc that i must read -- we have to abide by the laws of the jurisdiction in which we operate. we are unable to comment specifically on certain count activity, however it is disappointing to see the circumstances of this case being misrepresented. todi: for now, let's turn karina mitchell with the first word headlines. karina: it's something we have all been waiting for -- massive mobilization to deliver current virus vaccines gets underway this week. theu.s. could approve vaccine as early as thursday. global cases have surpassed 67 million with almost 2000 people americanng into hospital. france is poised to miss its goal lifting the lockdown next

week. japan will announce a new stimulus relief package as coronavirus cases rise in support for the cabinet falls. worthill layout measures $700 billion. the package will include loans, new investments and direct expenditure to boost the economy. the plan will be partly financed by a third extra budget. is world economic forum abandoning its traditional menu -- attend -- venue in davos. it will take place in may. in 2022.o return allow top-level talks for the first time since the pandemic struck. bank of america says criminals may have fraudulently claimed $2 billion from california's pandemic stimulus fund. the lender that manages the program for unemployment says the estimate is based on the roughly 300 45,000 accounts it

was asked to freeze into timber by the states employment department. 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. haidi: still ahead, hopes fading and boris deal johnson is headed to brussels. wednesday is now said to be the final cut off. stocks trading in hong kong. we will discuss the prospect. this is bloomberg. ♪

haidi: attempt to reach a brexit accelerating race

against time. major differences remain with the final divorce looming at the end of the year. with thehays is here latest. boris johnson traveling to crisis talks. what can we expect? kathleen: so long to get this deal done and now the negotiations look like dealing with a crisis in the making. we do have the two heads of state heading for meetings and this is after eu negotiators, after months of talks since the first brexit vote have not been able to get close enough to sealing a deal, so it's these top political leaders that have to get this done. they are far apart on the three main issues. let's start with fisheries. the u.k. has vast access to them and they claim perhaps without a brexit deal they become theirs

alone in the future but they are trying to negotiate with countries like france and their fishermen depend heavily on those waters. field, a level playing ensuring competition on both sides once the exit takes place, how are you going to oversee and adjudicate all the matters that are going to come up? pessimism is increasing on both sides as a official told bloomberg he sees no tangible progress in the latest week or so of talks. there's every chance no deal will be reach. ireland's foreign minister saying some eu countries are resigned to the fact that there may be no deal and there shifting toward contingency plans. boris johnson today did make a --ll step toward compromised toward compromise and saying he won't make good on the threat that he would rip up the divorce

agreement, something that would break international law. the chief negotiator for the eu said wednesday is the cutoff date to reach the deal. that's not set in stone and for sure we note johnson and him will be meeting tomorrow and tuesday. haidi: really hard if you are u.k. business trying to work out what is going on. we get this idea increasingly that it might not be a deal. kathleen: can you imagine what it's like to be a business trying to deal with this ahead of a panel meeting of the british parliament, it's the panel of energy and industrial strategy to listen to what is going on. some letters were fired off and a notable one came from the aerospace industry. -- theoint is this

uncertainty produced by the current negotiations and the lack of time with which to deal with the outcome before the end of the transition is highly damaging to business confidence and the ability to prepare and nonnegotiated outcome would be the worst possible thing for businesses. that does seem to ring true. meanwhile, lawyers say they are not just going to face higher costs. the ability to serve eu clients is greatly reduced. a company that represents about 30% of u.k. dairy farmers say the food industry faces a triple whammy, not just brexit uncertainty, but christmas is coming and they get a lot of product from the eu and by the way there's a pandemic rating. how it's note looking like a very happy new year when you speak to u.k. businesses and why so much is at stake.

of they pull some kind brexit rabbit out of their hat? that's the big story for the next couple of days. anything can happen. axel weber spoke to bloomberg in an exclusive interview and says he does see a deal eventually. he discussed whether a merger with credit suisse could come as he and his counterpart or do to down soon. of the wave,ahead and when i say europe, i mean the euro zone the european union because that's a single market. as a banking market, they are fragmented, so mergers to get holistic access does make a lot of sense and i expect some dynamics there. we are amestic front,

very strong bank and have done reasonably well. accretive if two domestic banks talk about mergers but they are very hard to implement. and is a very unusual time there's very high uncertainty and in such a highly uncertain environment, such talks would be more difficult. i don't expect these things to happen at the current juncture and these will be things people talk about for years to come before we see any concrete movement. the ones driving the consideration are the ones that have profit and neither ubs or credit suisse are in that area. >> what is the hope for financial at this late stage? the -- financial services are not part of the discussion yet. we have trade and a new relationship with the eu.

they would basically call the shots, so they look at the european court of justice as that entity and it has been a difficult discussion in switzerland and i don't expect a less difficult discussion in the u.k. if i'm honest. >> will we get a deal? cracks in the end, both sides will come to an agreement. it will be a transactional deal will beever is agreed subject to review. think financial markets. if the union, like switzerland gets an agreement because the u.k. is super equivalent in every dimension, that's only a snapshot in time. as soon as the u.k. uses its degree of freedom and changes the laws in financial institutions, it will be reviewed and switzerland lost its equivalent for the stock exchange, not because of anything happening in

switzerland but equivalent judgments are political judgments and at the granting of exit by the european union and not a reliable two way contract that can be enforced by either side. benefit granted by the union and can be withdrawn at the discretion of the union without going into a deep discussion of why that is. axel: axel's lover -- weber speaking to francine lacqua. up next, pbw investment manager says investors should get used to u.s. markets underperformance. this is bloomberg. ♪

haidi: asian stocks slow at the open as coronavirus are weighing on assets. our guests as a healthy fallback is ahead and expects a golden age of asset allocation.

great having you with us. in this day and age of upcoming vaccines and global liquidity, where does the u.s. that in? it has been interesting -- when you have these moves, we call them the great rotation, no longer a trade but a great rotation of which novembers performance was a down payment. when you have these moves away from the u.s. to non-us markets away from tech to cyclical and value, it tends to last for a long time. the u.s. has been the dominant place to be whether it's equity, bonds, currency since the bottom in 2009. i think we are seeing just the beginning of a rotation away from the u.s. because we are in a global economic boom. next year we will probably see

the best growth in almost 50 years, since the early 1970's, so you want to be in cyclical value markets like europe and parts of asia as opposed to the u.s. which is leveraged by technology. i call it kryptonite for technology stocks because you work from home, that is going to be over and i think it will pull over demand. next year, tech will struggle to generate earnings growth. you have rising interest rates. market ina fair sovereign debt in the u.s. and europe and that is going to weigh on growth stocks that returns toong dated justify valuation. sickch struggling and local and value performing, that leads you to non-us markets.

we have seen some of those market see record inflows. we saw those inflows at the highest level in seven years into korean equities. what i want to expand this and not look at korea, but other countries like china and japan. korea has a very strong korean dollar because of these influences and the weakness of the u.s. dollar. same thing for the chinese yuan. how much will that hurt these export-dependent economies? a great question. we expect continued strength from the renminbis and just note november exports for china were up 20% year-over-year. the strength in the currency has not hurt exports and i think it plays into the dual circulation strategy china has announced where it wants to stimulate

domestic demand and improve imports. by the way, a stronger chinese currency provides an umbrella for the rest of asia and the rest of the world. inflationary -- sends an inflationary impulse as opposed to a deflationary impulse. we are at the very early stages of these moves. you will have a rapid adjustment but that's just the first couple of innings. i believe emerging markets will do well and developed markets will do better, so we are more keen on europe and japan that we are on e.m.. asia as wellrts of as latin america, which has really lagged dramatically over the last couple of years. talk to me about your convictions -- you say that easing will come hard and fast later this week. does that just double down if

there is no clear brexit deal? jay: i saw the earlier parts of the show while i was waiting to come on and brexit remains an issue. multiyearing of the blocking -- these things need to happen and we think europe has a chance to win the decade of the 20 20's but it needs to execute. and when we see that execution, it's not the ecb. we believe monetary policy is in third place beyond health policy and fiscal policy. so it's the spending on the infrastructure for the joint the greenund, into deal, leveraging europe's place as a regulator for the global economy and has the added value of being a value play, a play on

chinese growth, a play on global demand and the mastic demand within europe. i think there's a lot of reasons to be constructive on europe and the thing i like is many others do not share that view. i think overweighting emerging markets is a consensus bet. overweighting europe, overweighting japan is not yet consensus. always great to chat with you. ahead, some big exclusive interviews coming up. coming up next, the japanese prime minister set to unveil a 700 billion dollars stimulus package. the country facing its worst wave of covid cases yet. we will also giving household spending figures when they cross

the bloomberg. this is bloomberg. ♪ - i'm dough hirsch.

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all from the comfort of your own home. visits are confidential and affordable. need a prescription? your doctor can send it to your pharmacy or have it mailed to you. get the healthcare you deserve at goodrx.com. shery: we have breaking numbers out of japan. labor cash earnings year on year, a contraction of 0.8%, which is a slightly bigger contraction than the previous month. labor cash earnings have been in the negative for the past seven months. we continue to have the run-up in cases of covid-19. household spending year on year growing 1.9%. this is entering the green for the first time since 2019. it would be the rebound and growing for the first time since september of 2019. it is still a mess considering

-- a miss considering expectations of growth. you have to consider the fact that it is mainly due to the flattering base effect from last year's sales tax hike and it does not mean you have a huge turnaround in consumption. both household spending rising but not as expected and labor cash earnings still in contraction territory and disappointing. let's stay on the japanese economy because the prime minister is set to unveil has first stimulus package -- unveil his first malaise package. given the economic numbers we have right now, it will be -- our politics reporter in tokyo joins us. what are we expecting the government to spend the money on? say, a $700 billion package. about 73.6 trillion yen. to give you some idea of the

scales, in normal times, an annual budget for japan would be ¥100 trillion. that is the headline size of the package, which includes things like loan facilities. the size of the third extra budget he will pass to fund it will be a smaller size of ¥19.2 trillion. it is expected to include things including a continuation of things called go to subsidies for domestic travel, which have proved divisive in japan. saying encouraging travel risks furthers spreading the virus, which is in the midst of a third wave in japan. there is expected to be more cash for furloughed workers, handouts for single-parent covid measures like remote working.

haidi: he has promised to balance virus control with the economy. how is he faring with that balance? >> if you look at the opinion polls, he suffered this massive slump, eight two digit slump over the -- a two digit slump, it indicates a lot of people think he is not getting the balance right. three quarters of the people in both of those polls said controlling the virus should be prioritized over the economy at this point. -- we arehe economy expecting the third quarter to upsurgehealthy, a big during the emergency period in the earlier year. a lot of people are thinking, this is not quite the right way to go. he has got to hold an election by october of next year. this is going to be hard for him to pick the right time for that support is on his

the downswing. he will have to hope for something next year that will bring it up. for example, bringing in the vaccine or if he manages to stage the olympics, that might improve his approval and help them for the next election . haidi: it is not an enviable balancing act to for any of these politicians. our politics reporter in tokyo. staying on the virus, health care workers and people over the age of 80 in the u.k. will be among the first in the western world to receive a covid jab on tuesday. this vaccine requires two doses. one of the huge challenges may be convincing people to come back for a second shot ted let's go to it -- a second shot. let's go to our health care reporter. we know how hard it is to remember follow-up appointments, anything that requires you to come back in a few months.

is this going to be a problem when it comes to adhering to a two shot regimen? >> it is likely to become a problem for many people, especially because you do not really have good processes to electronically alert people and bring them back. this is going to be a huge undertaking. we are going to need to make sure people who get pfizer's vaccine get a second dose of the vaccine. not only that, the two vaccines are given at different time periods. of moving parts. the overwhelming question is we do not know how much protection there is if any for people who only get one of the vaccines. a lot of unanswered questions. hopefully there will be some protection and hopefully most people will come back. it is still an unknown. shery: we have lived with this virus for months. it does not feel as scary as it did back when it first started

in the u.s. but the u.s. is averaging about as many deaths per day from covid-19 as it was in april. how is this possible? >> it is one of those things where from the very beginning, public health officials said this was going to be the worst period of time. it is what we saw after the spanish flu in 1918. we knew it was going to be the second wave before we could get the vaccines developed and into people, that this coming around again once the virus has been present in the world for an extended time, more people have been exposed. it has been passed more broadly. we did know it is going -- it was going to be bad right now. it is one of those things people do not like to face the worst possibilities and everyone was hoping it was going to be better than it has been. the progress we have made when it comes to developing a vaccine and the masking and social distancing have and more effective then we would have

expected. the most devastating possibilities did not come to pass. the virus did not mutate so it is not more deadly. it is not more infectious by a tremendous amount, both of which could have happened. considering we are in a good spot knowing the end is in sight, but when you are looking , today 2000 deaths a day is pearl harbor day. more deaths today from coronavirus than from pearl harbor. everyone from the con -- everyone in the country is going to be impacted at some point. haidi: at the white house, we have -- we have the white house sticking to its guns when it comes to in person events. they have a bunch of events and also this vaccine summit. we have heard moderna and pfizer are not going to be attending. >> it is very interesting. there has been some tension

between the trump administration and pfizer lately. president trump has clearly put the vaccine front and center. he has pushed very aggressively for it and put a political sweep across his intentions here. we have seen pfizer and modernity a lesser extent try to resist that. pfizer did not take any money to develop the vaccine. while they did sell a huge number of vaccines to operation warp speed before they knew whether it was going to be effective or not and that was predicated on it ultimately being approved, but they did not actually get any money from the government. trump administration has been trying to claim some credit. pfizer has been pushing back. the advisory committee for pfizer is on thursday. the idea of going to a political rally to portion out the credit for developing this vaccine, pharmaceutical companies are notorious for staying out of

politics, for not wanting to do anything that might upset the fda or jeopardize their beat's because everything rests on that -- the reputations because everything rests on that. they're trying to wall themselves off from the trump administration as much as they can should shery: strange dynamics when the whole country is suffering from this tragedy. miss our interview with michael milken. outlook ase us his the country anticipates the arrival of the vaccine. up next, jd health is set to debut in hong kong today after raising $3.5 billion in its ipo. we speak about the outlook for china's online health sector. this is bloomberg. ♪

karina: this is daybreak: asia. brexit talks are entering their final days this week with the u.k. prime minister boris johnson heading for brussels commissionu. president. both sides saying major differences remain with the e.u. saying wednesday is the cutoff point and the u.k. ruling out extended talks until the new year. the u.s. is sanctioning 14 members of china's national

people's conference. the 13 men and one woman face as freezes and travel bans and are all senior members of the npc standing committee. there had been speculation. china says the u.s. is going down the wrong path. the supreme court in india has halted work on a new parliament building. the setback for prime minister modi, whose legacy will include the development. judges say they are unhappy with the government not waiting on the verdict. costroject is estimated to $130 million with india mired in deep recession. often artists were accused of selling out. bob dylan is cashing in. he is offloading his entire back catalog tell universal music. universal has not put a price on the deal, although sources tell almostn's music is worth

$200 million. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. on karina mitchell. -- i'm karina mitchell. this is bloomberg. shery: let's get a quick check of how markets are trading. 200 beinging the asx led lower by their energy stocks. we are seeing a few sectors in the green. communication, -- kiwi stocks gaining ground for a third consecutive session. futures looking negative at the moment. ek futures down. this coming at -- nikkei futures down. this coming at a time when we have the japanese yen a little stronger when it comes to the u.s. dollar. we did get those labor cash earnings, not to mention spending numbers. disappointing to the downside. we have third quarter gdp

numbers. futures the u.s. trading at the moment. haidi: already jumped in hong kong's market trading. a sign that the biggest market of the year is off to a good start. it is the largest online pharmacy. it raised 3.5 billion u.s. dollars at the top end of the range. . shuang geng. with this is the biggest health care ipo we have seen. are you impressed? do you think it will deliver? yeah, [indiscernible] it is kind of like the main beneficiary.

the market for this area is large. [indiscernible] and also, i think jd health has [indiscernible] it can leverage on the jd logistics. uniquet has some -- [indiscernible] in terms of growth and building

-- [indiscernible] haidi: we know that access to health care, health care infrastructure in hospitals in china, this is one of the biggest social and economic problems confronting policymakers. headway isre growth there for something like jd health and being able to address some of these issues? i think they faced some challenges particularly on the insurance payment side. adopt the locally management systems. take some time to connect a bit more cities.

theirf them cannot use insurance card to pay. think the pharmaceuticals take time to build up personnel. phasef them in china -- china phase challenges. [indiscernible] lay a solid foundation for the future. purchase -- [indiscernible] how much of these online consultations happening right now have to do with just acquisition instead of trying to monetize this? think the volume is

internet i think health care platforms, it is not an efficient way for them. the price is kind of low. the consumption frequency is smaller. [indiscernible] them toit is a way for acquire traffic to the internet health care platforms. [indiscernible] shery: so, how long could it to reallyd health

triumph and went over those 2 -- is win over there distributors in the market right now? shuang: i think it will take a longer time. still -- [indiscernible] they still need to connect the insurance side. some elder people, if they card --se their [indiscernible] second point, they went to develop -- [indiscernible]

concern for the government. they cannot develop as fast and still need to have more qualified doctors. it will not be that fast. really great to have you with us. do not miss our exclusive interview with the jd health ceo. a.m.is coming up at 9:30 in hong kong. pfizer telling the u.s. it cannot supply any more doses of its covid-19 vaccine until late june. that is according to reporting from the washington post. the drugmaker has told the trump administration it cannot provide additional doses until late june or early july because other countries have rushed to buy up its supply. according to multiple individuals with the situation -- individuals familiar with the situation.

that is a lot less than what it had originally planned. we are hearing this is the latest when it comes to these supply concerns for pfizer. upped theecently vaccine -- recently lowered the vaccine target. shery: we have breaking again from japan. we are getting those third quarter final gdp numbers. annualized growth of 22.9% has been revised upwards from 21.4%. this would mark the fastest rebound in 50 years. at the same time, offset by the fact that we have seen the contraction in the second quarter driven by the pandemic. the worst since the postwar period. we are seeing that private investment and private expenditure may have boosted

those numbers for the final gdp figures and we are seeing the private consumption also may have helped leading estimates and growing 5.1% in the final quarter. quartergdp quarter on growth of 5.5%. again, this is revised upwards. year, wetor year on are expecting those numbers out. morere to come -- plenty to come. this is bloomberg. ♪ erg. ♪

shery: here's a quick check of the latest business flash headlines. uber is selling its self-driving car innovation to aurora. crating a larger rival for waymo. in values of war at $10 billion and gives uber a 26% holding. a chinese search engine has run for riden approval programs. it has fulfilled official requirements and expects to reduce human intervention in test vehicles. buyo systems has agreed to a u.k.'s software maker to help companies interact with users. the deal is there largest u.k. --uisition for through years

for three years and offers investors a 48% premium. wants to push further to allow customers to relate to end users. haidi: trading in japan and south korea in a few minutes time. let's get off to sophie. sophie: keeping an eye on korean pharma stocks. the health industry expect to announce negotiation's with vaccine negotiators. samsung shares very much in focus. they hit a fresh high on monday. analysts see more upside for the chipmaker. strong chip demand in the fourth quarter. that is going to help exports for those chips. we also have costco on the radar. we had die while lifting its profit for the korean steelmaker

as steel demand is seen growing. product margins expected to improve despite rising iron ore prices. steelmedia reporting prices are being raised. shery: plenty more to come on daybreak asia. markets open in seoul and tokyo. plus, an interview with the milken institute chairman. michael milken joins us to discuss the vaccine outlook and more. this is bloomberg. ♪ every year, we set out to do one thing:

help the world believe in holiday magic. and this year was harder than ever. and yet, somehow, you all found a way to pull it off. it's not about the toys or the ornaments but about coming together. santa, santa, you're on mute! just wanted to say thanks. thanks for believing.

>> welcome to "bloomberg daybreak: asia." from bloomberg world headquarters in new york, i'm shery ahn. haidi: i'm haidi stroud-watts. major markets just opens for trade. investors weigh rising virus co reporting that retired

general lloyd austin has been picked by joe biden to become the chief of the pentagon. this, according to three different sources. met withdacy has been resistance coming from national security experts, because he would require a waiver from congress, given he has not been out of the military for the required seven years.jim mattis , the first defense secretary of president trump's, also required such a waiver.axios last week reported biden's top advisor is feeling the pressure to announce an african-american to a top cabinet role. retired general lloyd austin has

been chosen to lead the pentagon according to sources. japan and south korea coming online. let's get straight to the market action with sophie. sophie: on the agenda today, jd health in focus in hong kong. japan,est reading from little reaction. the yen around 104. the nikkei two to five of 1%. nikkei off 7/10 of 1%. more spending and south korea expected. in a statement this morning, the government will allocate more than 70% of next year's spending to the first half, providing virus relief. south korea is home to asia's best performing currency. same song holding a five day advance. analysts are seeing more upside for the stock, boosting price

target. that is not helping lift the mood so far in seoul. the korean won under pressure. seeing the rally stall after extended into monday. looking at what's going on elsewhere, in sydney, seeing stocks fluctuating. the asx 200, this little change right now, under pressure. the pound and focus amid brexit talks. standard chartered singh we could see a move above 135 if a deal is secured. supply risks are looming giving that -- given that iran is planning to produce its virus case are that vaccine rollout very much is focused at blackrock, flipping the page, they have optimism. they turned bullish on the markets in 2021, upgrading global stocks to overweight. vaccine leadond a upswing, looking to nominal

rates being cut, even if inflation rises. haidi: let's bring in the senior market analyst at the wanda person fix. oanda. do you feel like the pricing is on the side? >> you could have argued that all year, but it's important to see what's driving that. is easing monetary policy by the federal reserve as well as the central banks trading blocks around the world to keep rates near zero that will cause asset price inflation. we are going to single volatility in the year. the underlying trend is asset prices are going to keep appreciating as investors search for yields in a 0% world. question is where is the inflation? it seems unlikely we'll see any

changing from global central banks but take a look at how the recovery is on foot in china. better than expected gdp numbers out of japan, yet not really seeing signs of inflation in major recoveries. they've been looking for inflation since the global financial crisis and we still haven't found it. i am expecting much the same here. i think there is talk of spikes of inflation that is slightly overdone. i believe that that cpi'sthrough to the around the world just won't happen. of quantitative easing, we are not going to find it suddenly in 2021. so i think perhaps people are getting a little too excited about inflation. shery: i have your notes right

now, yelling at me, sell sterling is coming. [laughter] so i'm assuming you are not positive about brexit talks right now. >> i think there are two scenarios here. , i think it iss a 50-50 with boris johnson having to travel to brussels to have face-to-face meetings. i think the sterling has the potential for brexit levels. also, the markets have bought sterling for the last three months, pricing and zero chance that there would be no deal. the market must be very long sterling right now. i think they will complicate the scenario as well. conversely, if they do get a

deal across the board, sterling will jump to 138, but the danger, there is a large move to the downside. shery: in the meantime, what does that mean for european markets? what would european stocks need to beat the u.s.? what would it take? that's a tricky one because there are two quite different beasts. the u.s. market is very open and europe is very much a social democratic state interventionist sort of economy. by that nature alone, they will struggle to outperform the u.s. they have a much larger proportion of legacy industries, as opposed to the u.s. as well. recover, bute can

i think europe, china and the united states in 2021, europe will be in a good place. shery: jeffrey halley from oanda , thank you for your time and insights. let's get to karina mitchell with first word headlines. karina: brexit talks are supposedly in their final days with u.k. prime minister boris johnson heading to brussels. agreed conditions are not there yet. the eu insisting wednesday is a cut off point and the u.k. ruling out extended talks. meanwhile, delivery of coronavirus vaccines starts this week with the u.k. rolling out pfizer's shot later today. the u.k. could approve as early as thursday. the washington post reports pfizer can provide additional dust can't provide additional since -- until late june.

meanwhile, global cases have top $67 million -- 67 million with almost 2000 going into u.s. hospitals. bank of america says criminals may have fraudulently claimed thousands in pandemic stimulus funds. a debit card program for unemployment payments as the estimate is based on the 345,000 accounts in september by the employment departments. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. getting breaking news on the first stimulus package from the premised are in japan. the japanese pm speaking in tokyo, saying the overall size is ¥73 trillion, pretty much bang on expectations, about $707

u.s. -- measures,ggert about ¥40 trillion. the japanese p.m. looking to ward off the economic harm of the increase in japanese virus cases as well as a dip in support for cabinets, proving to be an early test of leadership. we just had the third quarter gdp numbers rising on an annualized basis. we are getting confirmation when it comes to the stimulus package from japan. stimulusion u.s. package, ¥40 trillion in fiscal measures including loans, investments, and direct spending. we are seeing potentially that

funded partially from a third budget. we will leave that there, but of course we are waiting for more the japanese prime minister is speaking right now in tokyo. still ahead, the race for a covid vaccine and the outlook for asia. chairman michael milken will be joining us this hour. coming up, more sanctions from beijing. to ramp up.tinue we have the details ahead. this is bloomberg. ♪

shery: the trump administration trying to further ratchet up pressure on beijing over its crackdown in hong kong as washington sanctions 14 more senior chinese officials. our chief north asian correspondent stephen engle is tracking this from hong kong.

what is the significance of this when we could see a totally different administration in the white house in just five weeks? reporter: it is a big question. will the sanctions hold water after january 20? we don't know necessarily what the biden administration's china strategy is going to be. they have indicated, joe biden has indicated he will keep up the pressure on china over hong kong and elsewhere, but they also signaled they would not necessarily act as unilaterally as the trump administration towards china and punitive steps. we just don't know yet. you have to ask yourself, will beijing play the waiting game and see if things get relaxed? electorate in the u.s. is in favor of a tougher line on china. you will have to wait and see. what we can tell you is the trump administration has addingd, they are

sanctions to 14 members of the national people's congress standing committee. woman.and one women -- maybe i'm reading too much into this. but beijing, when they retaliated for previous sanctions on chinese officials, they sanctioned members of congress in the u.s. and ngo heads, not erect members of the trump white house. -- not direct members of the trump white house. there is worry that there could be wreck -- punishment for some members of the white house that will be private citizens. government, the foreign ministry spokesperson late yesterday, when they got wind the story was potentially coming down the pipe, the spokeswoman reiterated beijing's

line that there will be countermeasures if the united states continues to go down this wrong path. short, the markets didn't like it. financial shares took the brunt of that because there is speculation the trump administration could target financial bank companies that perhaps have ties again. this is the ongoing trail. you start seeing where the trump administration is going with alleged ties to the chinese people's liberation army. a lot of speculation in the market. we have to see how it opens up. what's going on with reporter: is another story that has been building up in the last couple days. he says his bank account as well as his wife and his parents' has

been frozen. local media says they were temporarily unfrozen, allowing a family to retrieve funds, if not all of it. we have not substantiated that yet. police have asked hsbc and other banks to re-freeze that because there's an ongoing investigation under the national security law under his crowdsourcing practices for alleged money laundering as well as collusion with foreign forces under the national security law. that's according to the hong kong police senior superintendent in the national security department. that is an ongoing investigation. nevertheless, the former lawmaker, now on exile in the u.k., says this is an extremely serious situation. i might add, the crackdown and arrest of pro-democracy candidates and activists continues. we are hearing from local media that two former lawmakers have

now been arrested as well. they were former opposition lawmakers arrested, apparently, on june 30l assembly and july 1. those are the days the national security law was promulgated onto hong kong. haidi: chief north days are correspondent stephen engle with latest. coming up, the u.k. planning to test a vaccine cocktail of pfizer and astrazeneca shots. we will be discussing what they are hoping to find just ahead. this is bloomberg. ♪ e hoping to find just ahead. this is bloomberg. ♪

vaccine taskk.'s force is planning to combine the pfizer biontech covid shot with one from astrazeneca in trials next year. we are joined by our health care reporter michelle cortez. talk us through i guess the

pharmacy aspect of doing this and what they are hoping to find. reporter: it will be a little bit complicated in terms of actual tracking of who is getting vaccines. in the clinical trial, it would be tightly regulated. they are trying to make sure they hit all the different perspectives of the immune system, the most robust response to the vaccine possible. shery: perhaps even get around some of these issues about having to require people to take two shots when it comes to the pfizer and moderna vaccines, because not everyone gets a second shot right? right.r:

this is still two shots. except for instead of getting two shots with a pfizer vaccine or two shots with the astrazeneca, they are looking at whether or not mixing and mashing will -- matching will lead to an even greater response. each one of these vaccines work slightly differently. the pfizer and moderna vaccines are pretty similar, the mrna vaccine that causes the cells themselves to make a piece of the virus. that astrazeneca vaccine works separately. they are thinking that if they have two different approaches, they might get a nor ashmore robust immune system response. know after the second vaccination, people have more significant side effects. like muscle weakness, slight unwell.eeling . if you mix it up, you could have a different approach and maybe have less side effects. that's the kind of thing they are looking at. the studies will be small, though. haidi: really intriguing.

michelle cortez, our health care reporter on the latest of those trials. a quick check of business flash headlines. cisco systems agreed to buy u.k. customer service software company imi mobile in a deal almost worth three quarters of a billion dollars to help companies interact with users. a 48%ers imi investors premium on fridays close. the british parliament has approved a bill to protect against cyber threats and espionage. it doesn't named specific countries or companies but it does ban equipment to national security. tech, theying on chairman of siemens says he welcomes competition from asia. he told bloomberg how he is trying to renew the 170-year-old company. the last 20 years have had

dramatic change because of the big companies that disrupted where the newcomers. the companies we did not know before. just look at the most valuable companies today and probably five out of 10, we did not know 10 years ago. the big challenge i had with myself is, how can we get the old companies, more than 100 years of experience, to become renewed and reinvented itself? that has been the charge that siemens. siemens is today three companies. we have dismantled the conglomerate when i started on wasbird dashboard, it intended for businesses. now it is three companies, individual companies. move to individualized

health care and prevention. you have siemens energy which will be spun out in september, the energy company that is managing the transition of renewabletems to energy, and then we have siemens, the combination of hardware and software, to disrupt manufacturing, urban living, and mobility. you can see how these three challenges are completely therefore wed believe having speed and focus is more important than being big. if you are just a conglomerate and there's not enough synergy between the three, you might end up in a situation where you are to slow. you have scale, but no speed. with this approach, we have speed. with that speed, we can fly the transformation of the industry rather than being the victim of

that. reporter: siemens is one of the companies that has done pretty well in asia. do you worry about increased asian and chinese competition in this space? >> i actually welcome the development in asia. to a large extent, it will become the biggest market in the world, certainly from a population point of view. it is a huge consumer market, a lot of manufacturing has moved to asia over the years. continuesume this will as labor costs define where manufacturing is happening. trend a reversal of that right now and the markets are becoming truly global. than 160 yearse of experience in china, which is quite remarkable. changingynamics is

from being mass production oriented at low labor costs to being an innovator, which means for a global company like tomens, we can get access global talents. if you have talents in all parts of the world, you have a better talent pool to choose from than if you are limited geographically. opportunity, an great market, great talent, speed of innovation will show who can win. haidi: that was the siemens chairman jim snabr. coming up, jb ahead of its big debut in the markets. what we expect from hong kong biggest ipo of the year, the biggest health care ipo ever. this is bloomberg. ♪

haidi: just getting break -- breaking news when it comes to australian economic data. numbers,confidence when it comes to business nine from rising to the previous two points. confidence rising from the previous three. a pretty big jump when it comes to business confidence and conditions in november. over that time, we had the resumption of essentially most economic activity in victoria as melbourne exited the severe lockdown. we are getting the health price

index, quarter on quarter, a gain of 8/10 of 1%. that is much better than contraction of 1.7% we are expecting bouncing back from the previous month. year on year, the index for the housing market up by 4.5%, more than double expectations of 2.2% and continuing the strong run. we are seeing potentially the start of the housing market getting exuberance from a super low interest rate and we are expecting an interested to see how policymakers react to keep a lid on hot property prices, which historically have been an issue in the past year. let's get a market reaction from sophie kamaruddin. aussie dollar maintaining losses while the aussie share markets is gaining ground. off session lows higher by 2/10 with tech and health care

rising. overall, it is a mixed picture with regional index heading lower in japan. the nikkei 225 falling for a third. the kospi dragged lower by chipmakers, samsung holding a five day gain. we do have what's going on in japan following the update on the stimulus package rising with traders and details on how the government expects to spend the 700 a billion-dollar relief package. bloomberg dollar index holding steady after the overnight we saw for the greenback. 652.ore yuan trading there may be intervention coming into play to moderate the pace of gains for the renminbi. we have westpac saying the euro

pound pair could retest recent lows with initial target of 8850 if a deal is secured. gaining,e sterling holding steady this morning. some choppy trade holding overnight with the cable just below 134 here. health ahead of its public debut, and less than an hours time. that is a clear sign of the biggest ipo of the year off to a good start. equity capital markets reporter julia fioretti is in hong kong. should we expect a pop on today's debut? yes. the gray market trading is a positive sign, rising as much as 28% yesterday. normally that's an indicator it will do similarly well today on the actual debut. that is an increase for an ipo of that size for $3.5 billion,

the largest this year. also heavily more subscribed by retail investors and they had to clawback shares from the institutional chance. that's another sign there will be good trading today. huge: we know there was a disappointment with ant financial being pulled. what we see when it comes to investor appetite? reporter: it doesn't seem to have been dented much or at all. it was a huge disappointment but also released liquidity that was locked up by the massive ipo. investors have been able to deploy it on other listings, which have been improving popular in their own right. people are looking for ways to put their money to work. have jd health, it will not be dampened by the suspension.

shery: is that why we have seen health care ipo's being so popular, especially with the pandemic backdrop? reporter: the pandemic backdrop has driven it partly. health care ipo in asia, they it's aa record combination of the pandemic backdrop that boosted investment interest in everything health , not just covid related. there's a lot of companies coming forward like biotech, pharma, coinciding with rising valuations. . the sector has been one of the best-performing in asia. that coupled with tech, they have been the real winners from this pandemic. they have been tapping the through ipo's and follow-on's. haidi:haidi: equity capital

markets reporter julia fioretti in hong kong ahead of the highly anticipated start of trading of jd health. . you don't want to miss that exclusive conversation with the jd health ceo coming up at 9:30 a.m. in hong kong, half past 12:00 if you are watching in sydney. coming up, the race for a covid vexing continues. the outlook for asia as well. the milken institute chairman michael milken will join us next. this is bloomberg. ♪ omberg. ♪

karina: this is "bloomberg daybreak: asia." i'm karina mitchell with first word headlines. the u.s. is sanctioning 14 members of china's national people's congress in response to beijing's crackdown on dissent in hong kong. 13 men and one woman faced asset freezes and travel bans and are all senior members of the standing committee. theu.s. would target politburo member, but he's not named in the list. china says the u.s. is going down the wrong path. meanwhile, japan's economy rebounded from its coronavirus slump faster than estimated last quarter. latest gdp figures show an annualized jump in the three months since september. more than 21.4% initially reported. that's the fastest growth since 1968. wages however fell in october for a seventh month while household spending rose for the first time since the sales tax hike. staying on japan, they announced a new stimulus relief package as

coronavirus cases rise and the support for the cabinet falls. isme minister yoshihide suga proposing overall measures worth more than $700 billion with under 300 $90 billion in fiscal initiatives. this excludes loans, new investments and direct expenditure to boost the economy and will be partly financed by a third extra budget. in other news, the supreme court in india has halted work on a new parliament building. it's a setback for prime minister modi whose legacy won't lose the development. judges noted they are unhappy of the government not waiting for the court's verdict ranging from land-use to the environmental impact care the project's system mated to cost about $130 million with india mired in deep recession. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. shery: the milken institute asia

bringingcks off today together global leaders in finance and government. let's go to singapore and our markets coordinator haslinda a min. reporter: the man at the center of it all as mike milken, also at the center of efforts to find a vaccine for covid-19 as we await the press shot to be given today, let's get perspective from mike milken today. always good to have you on the show. why would it take 10 years? it only took 10 months. it is phenomenal. >> i think collaboration between life science companies opening -- opening their patent library, partnering with each other, willing to risk and building manufacturing facilities before they know they will be used, and manufacturing these vaccines, antivirals and antibodies, before we knew they

would work, and cooperation with the performance throughout the world that invested more than $20 billion. but this is really testimony to what we are capable of doing and hopefully, we will learn from this experience that we will leave these facilities that are created in place in case they are ever needed again. but the challenge has not ended. it is about distribution. 7.8 billion people in the world and we have not done this before. are 200 14 is there vaccines, 300 antivirals and antibodies, 30 vaccines have gone into humans. the u.k.ll aware that has approved the pfizer vaccine. in mys. will approve it opinion later this week and it will be in distribution here in

the united states and sent around the world. are of these vaccines capable of producing more than thebillion doses, but chinese biotech vaccine is also being distributed and i guess will be approved in indonesia, morocco, uae and other places. , bloomberg reported not too long ago. in january and february, i would expect approvals for astrazeneca and j&j. collectively, you might have five to 10 million doses of vaccine that will be available, antivirals that have been approved for emergency use by regeneron. they shut down their north american facilities eight or nine months ago and shifted that production in europe to prepare to produce their antiviral efforts. competitor of

regeneron, they signed an agreement in january. after six months, they will be producing. there is great hope for worldwide distribution. obviously, the devastation, the tragedies that have occurred from this pandemic around the world will be with us. the mental health side effects for a long period of time. but i do believe the world fully understands you can't solve this problem just in north america or south america or europe or asia. you need to solve it in africa and europe and every continent in order to bring this pandemic to an end. haslinda: so you require a coordinated effort, but there is also the issue of vaccine nationalism. we hear that president trump is set to sign an executive order giving priority to americans

where these vaccines are concerned. you make of vaccine nationalism? how much of a problem will it be? >> i have been in meetings for nine to 10 months and how we distribute this throughout the world. the u.s. put up far more money than anyone else and arranged to have delivery of one billion vaccines from six or seven manufacturers if they are approved. but just pfizer alone has the capacity to produce 1.3 billion vaccines. that would cover 650 million people. j&j approves astrazeneca, i expect those, which are easier to distribute, would require one shot, not requiring to be held at low temperatures, these would go to africa and other emerging parts of the world, south asia,

very quickly. there has been may be more publicity to individual countries and a leader in the manufacturing vaccines and shipping them to other countries, but for 10 months, these are issues that have been addressed. plans are in place. in fact, those vaccines that were shipped to the u.k. after it approved the vaccine actually came from belgium, the first half-million or so. but they will travel the world this year. for those that would continue to get this virus, eli lilly's emergency approval of the plasma and regeneron's antivirals hold a lot of promise to substantially reduce the severity for those that got covid. the pandemic has had great impact on the global

economy and governments as well have been buying their way out of this recession. what do you make of the level of debt that has been accumulated? how will that play out? >> as you and i have discussed for years, when you talk about debt, there are two factors you need to consider. one, the maturity, and two, the interest rates. so the asia summit, which is occurring at this time, will bring people from every continent in the world except antarctica, and hopefully next year we will have someone from antarctica. but in 1981, the u.s. government for example, short-term rates were 18%. long-term rates 14%. in many parts of the world, interest rates are 0%. japan and parts of europe. debt, along-term country like austria sold 100 year debt.

it was trading under 1%. debt, we havek at to factor in the maturity and factor in interest. if we take interest rates in the united states today, 10 years or -- $1 trillion today would have been equivalent in interest rate payments to $10 trillion before. those twoo equate things and the reduction in interest rates and what governments have done have obviously forced people to invest in equities and other financial markets around the world and the explosion of technology to solve our problems. it has been amazing. one of the things we will address here is just what is working. you and i speaking together, asple being beamed in holograms into the conference. i'm coming in as a hologram,

others through zoom, and others in person. one of the enormous successes of singapore is that we can actually, in singapore, because of their success in controlling this pandemic, we can actually have 200 or 250 people gathered in a meeting. haslinda: looking forward to you coming to us through a hologram. one more question before we let you go. are you concerned policymakers may be inflating asset classes? do you see that happening? 0%,hen interest rates are the search for a rate of return asset valuesves up of homes, of residential real estate and parts of the world, of equity markets. ofay we see, in terms technology and biotech and other life science companies,

as multiples we have never seen before. those are inverse of interest rates. as we have seen over long periods of time, centuries, the bond market will underpin equity markets. if you believe interest rates will rise substantially, i think then you will be very concerned about whether you are seeing equity prices too hi. for the most part, most countries have committed to keeping interest rates low, that hasnd therefore supported equity prices, but also the technology. many things have changed. you have seen those technologies. whether it has been telemedicine, tele-education, telemedia, tele finance, the most valuable financial companies in the world today, a

pure financial company would be visa, paypal, mastercard. along with jp morgan and a couple other banks. so technology changes. paypal's stock this year has gone up more than citibank or goldman sachs are worth, for example. haslinda: we have to leave it there. we will continue our conversation tomorrow at the milken asia summit. looking forward to that. mike milken institute chairman. haidi: also looking forward to you coming to us as a hologram at some point. haslinda amin with the milken institute chairman michael milken. don't forget, if you are away from a screen, find in-depth analysis and the days newsmakers on bloomberg radio. lots more ahead. stay with us. this is bloomberg. ♪

haidi:haidi: a quick check of the latest business flash headlines. american airlines says it is ready to expand services of the 737 max as the plane returns grounding.rldwide . they are planning to build flights up to 38 today up to december and eight more in addition to the miami and new york route. american says it will continue to focus on miami. the plane was grounded in march last year after two fatal crashes.

northrop grumman selling its federal i.t. support services. the unit provides a wide range of service security and cloud services to customers from defense to intelligence and health sectors. up says it doesn't see a tie with credit suisse anytime soon despite its rival sing a merger would not be unreasonable and could mean benefits for both companies. the ubs chairman says the imminent departure of senior figures at both banks makes it an inopportune time for a deal. shery: more signs china wants to stabilize debt levels in the economy. policyhe indicators, makers are requiring tighter liquidity in the financial system. our china markets reporter is on the line. we all know very well china's debt problem. doesn't it make sense to rein in these debt issues when the economy is now rebounding? reporter: yes.

and the policymakers with think now is a very good time because market confidence is strong. as you mentioned, the economy has done pretty well. we saw the pmi data and exports have grown faster than expected in november. at the same time, the yuan is pretty strong. that means policymakers don't really have to worry about capital outflows. thehe same time, if campaign goes out of control, the policymaker has large room to ease policy when the yuan is strong. it is a pretty good window for them to start a campaign at the moment. you talk about the timing. why now? the economy is pretty strong and the yuan is strong as well. the stocks are doing pretty well at the same time. overall, the market confidence is pretty good in china at the moment.

at the same time, the policymakers don't want to very largebecause market volatility can also trigger financial risks and at the same time, china's economic rebound is supported by strong exports overseas. is over global pandemic but economies may start to flow again, the policymakers may have to seize the window right now. haidi: our china markets reporter there. jd health's debut is in focus later this morning. highly anticipated. what else are you watching when it comes to markets right now? sophie: keeping our eyes on chinese e-commerce, after jeffries recently said that the internet cycle will continue next year with investments. m&a and regulatory maneuver

ing, saying alibaba and tencent will be the stocks to own into 2021. a carmaker,ing reporting a bump in november sales which city called superb as the carmaker defended itself without losing market shares to competitors, clenching 88% of sales targets for 2020. switching out the board, chinese , asa and telecom operators beijing is pushing for more development of 5g when it comes to content production. we are really watching jd health. don't miss our exclusive coming upwith its ceo later at 9:30 a.m. in hong kong. half past 12 in sydney. why are we watching it? we have their debut. these are live pictures from jd health beijing headquarters where they are set to hold their ipo ceremony. the is after coming as

stocks surged in hong kong's market, a clear sign hong kong's biggest ipo of the year is off to a good start. from daybreak 8 -- from "bloomberg daybreak: asia", coverage continues. the china open is next. this is bloomberg. ♪ ♪

>> hello and good morning. it's 9 a.m. and beijing and china and also here in hong kong. to bloomberg markets: the china open. our top stories today, the u.s. sanctions crackdown on defense here in hong kong. fee -- figures at the