haidi: good morning. i'm haidi stroud-watts in sydney. we are counting down to the major market open. shery: i'm shery ahn in new york. welcome to "daybreak: asia." markets set for gains after stimulus optimism lifted wall street to another high. republican leaders and the administration are pushing a new 900 billion dollar relief package. the u.k. rolls out the first covid vaccine. the u.s. could follow suit.

joe biden is pledging 100 million doses in his first 100 days in office. australia threatens to raise tensions with china, approving laws that could weaken blazing -- we can beijing's stimulus. tensions continued to sour. haidi: sydney is coming online. let's look at the markets. sophie: the stocks are headed higher. the benchmark wiped out year to date losses on tuesday. -- raising minors, the price tag for several names. was by 14%, but downgraded to neutral. record high after record high over the past week. switching out the board. taking a look at what going on chicago.ei futures in

upside moves. theing an ion tourism as administration doubled down on domestic travel in the latest stimulus package. certainly under pressure after a choppy trading session. factors will be a key when it comes to demand for oil. when it comes to gold bullion, holding steady after a two-week high. investors awaiting what can happen on the stimulus front. we have heard somewhat on that. then we are edging higher by .2%. it closed above 3700 for the first time. shery: we have breaking news. setre hearing doordash is to price its ipo on $102 a share, according to cnbc. it is about seven dollars above the range, a range already boosted in the middle-of-the-road. so you can see this initial

public offering, it will start trading tomorrow. earlier this year, doordash was privately valued at around $15 billion. but this boosts the valuation. they are set to price their ipo at $102 per share. to the latest on u.s. stimulus talks. heven mnuchin and says presented nancy pelosi with a $916 billion aid proposal, which has been revealed by mitch mcconnell and house minority leader kevin mccarthy. emily wilkins has more on this. what does it mean? can we finally see another stimulus package? is the biggest breakthrough we have seen in months of negotiation. billion, slightly higher

than what lawmakers were talking about previously. the most important thing is it makes progress on two issues they have clashed most with, money for state and local governments, and robust liability protections for businesses, schools, and universities. it also contains about $600 in checks for americans, something lawmakers say is much needed. the last americans -- amount americans got was 12 -- $1200 in spring. concerns, there still particularly from mitch mcconnell, about the issues of liability and what happens to the state aid? this have just heard about proposal from steven mnuchin and. we are trying to talk to lawmakers to figure out where they are, how much they support it. but coming from the white house, it is very positive. mitch mcconnell has been attentive to what the white house wants and get it through.

so it's important that it has the backing. another thing will be kevin mccarthy, who recently told a bloomberg supporter he is on the deal. at this point, things are looking positive to get something done. shery: what happens if we get the stimulus package? could there be more on the way? nancy pelosi was already talking about more measures needed after joe biden takes office. >> absolutely. i think she sees things will be easier to move with a biden administration, a president who will negotiate and work to get another stimulus package done. that's part of the reason she came down from her initial request of $2 trillion for the current package. so i think there's a lot of hope there will be another stimulus package early next year. that depends on control of the senate and how much republicans

are willing to give to the american people and american businesses. with theily wilkins latest on the stimulus tussle. let's get to karina mitchell with the first word headlines. >> the u.k. has launched the western world's first covid vaccine, with the u.s. soon set to follow suit as cases approach 68 million, including 50 million in the u.s.. joe biden is pledging 100 million vaccines in his first 100 days in office. withtial lockdown extended tighter curves. switzerland may cut opening hours for shops and restaurants. brussels is preparing to host what could be the final brexit negotiation with the eu commission president meeting boris johnson on wednesday. and the meeting is billed as the final cut off for any deal. johnson offered an olive branch

over northern island. -- ireland. -- antigovernment antigovernment protesters in thailand plan to step up the campaign, pushing for the abolition of a law that penalizes criticism of the royal family. they are planning to stage an important event on the 10th, thailand constitution day. it comes as they approve a $750 million program to boost consumer spending and revive the struggling economy. china is set to bail out iraq with an oil deal, including money upfront for long-term supplies. baghdad has picked the oil in the latest example of beijing lending to struggling producers with repayment in the form of physical crude. the iraqi cabinet is yet to approve the deal. a final decision will come from the prime minister. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 27 hundred journalists and analysts in more than 120 countries.

i'm karina mitchell. back to you. haidi: with sterling positioning ahead of key brexit talks, we hear from -- the bank of australia is optimistic there will be a deal. investmentext, strategies for 2021, where he still sees value, and why. this is bloomberg.

shery: a rally in emerging market stock in currencies seems to have stalled after a u.s. deal offset the latest vaccine developments. despite this, our next guest remains bullish. joining us now is -- great to have you on. we have seen a run-up in the rally in a market -- emerging markets. is it time to take a breather? how stretched are we?

>> we could use a breather. you could argue we are stretched. but it is that time of year where the market produces some nice returns. seasonally speaking, january and december are the best of the year for a probability of gain, above average gain. the momentum has been strong. i expect it to continue. haidi: how'd -- shery: how dependent is it on the vaccine rollout? what are the risks? part, investors are looking ahead. they see the light at the end of the tunnel. i think they are bullish for good reason. i think that economy will accelerate. the markets have behaved as if we will get a cyclical rotation. that will make a lot of sense. a risk factor is if the vaccines do not rollout as planned, are not as effective as expected.

we will not know that for a few months. are there greater opportunities, given the valuations across selective international alternatives? >> great question. when it comes to stock market valuations, it is extensive. particularly the u.s. market. the u.s. market is dominated by names that have done well. valuations for the u.s. market, very expensive by most measures. the only way you can say it's not expensive is if you adjust for interest rates. now those are moving higher, as well. in aggregate, it looks expensive , but i think there are pockets that look more attractive. well, givenerform we get the cyclical rotation. smaller companies in the u.s. have valuations that are much

more attractive. value oriented stocks have not participated to the event -- the level of growth stocks. also supportocks attractive relative valuations, particularly emerging markets and value stocks within them. geographically, what do you like within em? will the story get hung on the u.s. dollar, or is the stronger anger the direction of the -- anchor the direction of the yuan and robust chinese recovery? >> there's a lot of factors. i think it is global growth recovering. are a higherets data player, more leveraged to global growth. i think we will see economic acceleration that will benefit. a lot of factors come into play. interest rates, currencies, but i think to keep the story

simple, global growth is moving higher, and emerging markets should benefit. we are getting confirmation in a lot of markets. when you look at commodities, such as industrial metals, it is expecting we will get global growth and move higher. we may get inflationary pressure. i think those would bode well for emerging markets. shery: what happens to the tech sector? we talk about tech getting stretched in the u.s., the big tech names, but what about the emerging tech names, especially around china, or generally, north east asia? >> great question. -- it willl tech underperform on a relative basis, but probably better than u.s. tech. i would imagine it would be part of the rotation from growth to

-- from tech to more value-oriented sectors, such as energy. i think even emerging-market tech would underperform, but hold up that are then u.s. tech. shery: low rates will not hamper the financials? >> my expectation is rates are rates willterest grind higher. a lot of this do to inflationary pressure. most economists expect inflation at 2%, probably moving higher. to me, it seems if there is going to be a surprise, it would be to the upside, everything from global growth to massive deficit spending, to what the market analysis is suggesting, and inflationary uptick. longer-term rates would also move higher. that would put pressure on higher valuation stocks.

it would benefit financials, as well. rates stay low, and you get the curve steepening, it will improve the financial stocks, as well. joiningusty vanneman us. great to have you with us. rallies are completely misaligned, it is said. he said the pandemic -- benefited the u.s., but failed small businesses. disconnecta complete between the largest companies in america, the companies we talk about every day when we talk about the stock market, and the real economy. when we look back at what 2020,ed during covid and one of the big takeaways should be, and i pray it is, that when we made a decision, and i'm not criticizing the decision at the time, to shut down the u.s.

economy and dee,m certain -- dee m businesses as essential and nonessential, we deemed the largest companies in america as essential. we allowed the big companies to stay in business. ,he local neighborhood business those that sold the identical products we deemed to be nonessential, and shut them down. what ended up happening was the largest companies in america got 100% of market share. they got it for zero cost. forced tors, we were go to the largest companies, because they were the only ones open. so when we needed food or prescriptions, we went to big-box retailers. but we were able to buy clothing, shoes, appliances, things smaller companies on main street sold. so the stock market right now is

representing the fact the largest companies in america got substantially bigger during the crisis, because they were open. emily: and some are tech companies, apple, google, facebook, amazon. has big tech got into big? do they need -- got into big -- gotten too big? do they need regulation? you cannot generalize on big meeting regulation. sometimes you can be very big and not need regulation. depends on the barriers to entry, if people can are in and compete, if you horizontally and vertically integrated, if you have a huge competitive advantage, because not only are you providing one product, but the one product you provide leads to another product and another product, so a new

startup could not -- compete initially. and are you competing against other businesses regulated now, so are you on an unfair or not level playing field? yes, youart answering should be regulated to look like you are on a fairly level playing field with the existing companies regulated today. cohn. that was gary australia's parliament gives itself new powers to block deals with foreign powers in a move likely to take ties with china to fresh lows. this is bloomberg. ♪

australia passed a new law allowing it to veto or

scrap agreements made with foreign governments. increased tensions with china as they could cancel existing agreements made with victoria. paul allen has the story. we could see the deals being reversed. >> that's right. 130 agreements, 30 different countries could be affected by the law. memorandums of understanding and deals about the belt and road getting the most attention. bese to be examined will with victoria and china in 2018. participation and infrastructure projects, about 100 billion australian dollars. in exchange, the companies are giving inside running on belt and road projects in china and elsewhere. the federal government has not liked the deal for some time, and will be taking a closer look at that, potentially canceling it.

other states have deals with china on the belt and including western australia, south australia, and tasmania. one thing that cannot be scrapped is the great 1990 lease on the port in the northern territory, which was signed with china. it is because it was with a company, not the government itself. china said it would not be happy about it. it creates obstacles. theill certainly not help current climate between china and australia. climate,spite the china keeps buying australian iron ore. what do we see on that front? really needs that iron ore for its infrastructure projects. australia accounts for more than half of the world's iron ore shipments. the supply is constrained right now. be back atpected to

full production for a couple of years. tona purchasing minds mitigate relying on australia may not have hope, either. china did take their nuclear option of targeting the aussie iron ore imports. they could get about half of the supply usually imports. in the meantime, iron ore prices are soaring. it's been a huge win for australia and compensating for the dent in gdp growth. shery: paul allen in sydney. here's a quick check of the latest is this flash headlines. robinhood markets has reportedly hired goldman sachs to read preparations for an ipo that would value the company at more than $20 billion. sources saying it could come next year. robinhood was valued at more

than $11 billion in its last round of fund-raising in september. they declined to comment. into -- bypping going back into capital markets for the third time in 10 months and raising as much as $5 billion. it is at the market offering, meaning shares will be sold over time of prevailing prices. it could boost the cash balance to $28 billion. the credit product -- well in excess of trading. is expanding its market valuation above that of ibm. tuesday's rise makes the company worth about 120 billion dollars. it has jumped more than 30% since the earnings report. it impressed wall street with triple digit revenue growth. ibm is projected to generate

about -- this year, and has a market cap of $112 billion. high bridge capital is set to be in talk to raise strategy dedicated -- and related financial instruments. the new york-based firm has begun discussions with institutional investors, including leverage, looking to amass to $2.3 billion. boeing has suffered a new below as the 737 max edges back to service. the loss of almost half of an order from virgin australia under an agreement that also postpones initial plane deliveries two years through mid-2023. virgin australia will take 25 of the jets, but is scrapping plans for 23 of the smaller max eight

models as it shrinks its fleet after falling into bankruptcy. let's take a look at this part of the world when it comes to trading. fresh hides for u.s. stocks as we inch closer to a deal in washington. australia, despite the ongoing concerns and tensions. kiwi stocks hitting a fresh record high. about 1% at the moment. a modest start to trading when it comes to equity trading in tokyo. -- s&pe snp active active futures. we see that extension. a lot more to come. a great lineup of guests. we will have an exclusive interview with the union bank of the philippines chair. -- joiningo speak to

us. this is bloomberg. ♪ businesses today are looking to tomorrow.

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breaking news the u.s. house of representatives has passed a bipartisan defense bill despite president trump vowing to veto this bill. billion seeking to remove confederate names from military bases, boost weapons programs, and includes measures and establishes a $2.2 billion deterrence initiative to counter china. the u.s. senate is likely to clear the defense policy bill later this week. it also gives military bonuses and hazard pay's.

it would expire if the bill was passed. president trump said he would veto it, because congressional leaders refused to include provisions abolishing a tech company liability shield, related to defense. the u.s. senate is expected to clear the bill. it soent trump has vetoed far. haidi: we do have numbers when it comes to the consumer outlook in australia. consumer confidence out west showing a rise of 4.1%. current conditions also improving by 3.4%, as well as a jump in expectations. finances, also an improvement of 7%. it is filling out the puzzle pieces and gradual recovery in business and consumer sentiment in australia. infidence numbers surging november. economists seeing a rapid

rebound. we saw that giving a bump up to the aussie dollar. to karina mitchell with the first word headlines. >> lawmakers working overtime to get something done on stimulus. steven mnuchin presented a new $916 billion relief proposal to nancy pelosi. it is the first postelection move by the trump administration to break a month-long standoff. munitions that he has the backing of congressional leaders and president trump. he said it includes money for state and local governments and robust liability protections. australia revealed legislation for digital platforms to pay for news on their sites. facebook are told to compensate publishers for the story they generate, saying it recognizes the importance of traditional -- platforms to traditional news media.

the ceo says youtube and instagram are not included in it. car sales rose in china, fueling hopes that a slump in demand can be over. deliveries plan almost 8% from a year earlier, more than 2 million units. it was led by a doubling of demand for new energy cars and electric vehicles. global automakers are struggling consistently week sales in north america and europe. global news, 24 hours a day, on air and at bloomberg quick, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. shery: let's go to the latest coronavirus vaccine headlines. regulators may grant emergency use authorization to pfizer's vaccine, calling it highly effective with no safety issues. the plan to vaccinate most americans by mid-2021 rests heavily on 2 vaccines, and

regulators will not rule on them until early next year. michelle cortez is on the line. lay it out for us. what will the timetable for the vaccines for americans look like? >> we got the results from the pfizer and biontech vaccine. we saw our first detailed results from the trials in the report from the fda staff members. advisory committee panels on thursday will look at those results. we will hear from more than a dozen of the leading experts. if there is anything to find, they will let us know. we expect action on friday and over the weekend early next week. the vaccines are expected to roll out early next week. isctly what you said, there a limited number of vaccines. we expect enough to vaccinate 50 million americans using the

vaccine from pfizer. moderna is behind. over 330urse, we have million americans in our country. in order to get those people vaccinated, we will need more vaccine approaches to work, specifically astrazeneca and johnson & johnson. haidi: 100 million doses in his days is what 100 joe biden is going for. is it achievable? can it be funded? >> absolutely. the funding will probably be the smallest issue. everybody wants to get past this. there's also the desire to move beyond coronavirus that might encourage americans and people across the world to roll up their shirtsleeves, even though

there is hesitancy. and there are challenges in just doing it. as we were talking about, we don't have enough vaccines yet. we are expecting more details from johnson & johnson in daniel where he, astrazeneca, we got there trials, as well. we will need more study from them. it looks like it has promise. shery: in the meantime, things are getting bad. infections topping 50 million in the u.s. >> there's no sign of slowing down. worse, into to get the holidays, new year's, christmas, kwanzaa, all of the family gatherings. just like we saw on thanksgiving. will getpate things bad in the middle of january, perhaps february. we will start having protection from any health care workers and some of the most vulnerable

elderly population, but that will not be enough to slow down the virus. we will need to start seeing big numbers to get herd immunity. that will not happen until the average has -- average american has access to the vaccine, which could be spring. with thechelle cortez latest on the virus and vaccine. boris johnson to brussels for brexit talks. we look all sterling traders are reacting. joseph capurso will be joining us. this is bloomberg. ♪

talks of brexit appear to be waning in brussels. brexit feeling committee says he's not convinced there will be a deal. if there is, extra time will be needed for ratification. expect a legal text at the end of october, we are now six weeks later. it becomes very narrow. the european parliament penciled in the 28th of december, but we don't have a legal text. european parliament as a rubberstamping body, we will need time.

, some extraa deal time will be needed to ratify it. >> let's go back to the extra time. does it mean january? inindeed it will be a vote january. but the main question is whether or not there will be a deal. the more -- i believe there will be one. but the timing is key, because they said they would go for an extension. that will be crucial. what comes for the prime minister? afraid she cannot offer something to the tune of have your cake and eat it.

johnsonwhat boris promises time and over again, and it does not happen. was philipp lahm .ear speaking to bloomberg repositioning ahead of the meeting between boris johnson and the eu commission president. joins us foro analysis. kind of a reality check. take a look at the chart. we see the cost of hedging against the lower pound is highest we have seen pretty much out of all of the world's majors . jolt thatind of the the markets are recognizing we may not get a deal?

how much further downside to uc for the pound? needs a bit of a reality check. there is considerable downside risk. quickly,it would slump brexiturns out a hard will happen at the end of the month. it can also be a reality check to the politicians, as well. they really need to seek middle ground and come out with an agreement. no one will be happy with all aspects. and the european union, will be in for a rough ride next year. is such a binary decision at this point.

do you expect excess volatility to go to the upside if there is a last-minute deal? >> i think that is largely priced in. -- that is largely present. on the upside, you can get -- moving more than today. i think that will fizzle out. whatever deal goes on, it will not be comprehensive at all. there will probably be more negotiations next year, a more comprehensive trade agreement. support ismuch sterling getting, given the u.k. is spearheading mass inoculation with covid-19 vaccines? it is making some

difference. it is hard to know. is it is bad for the u.s. dollar more broadly, whether it is sterling or currencies, because the vaccine really improves the global economic outlook. dollarbecause the u.s. is -- it will be undermined by this improving global economic outlook. abouting i'm most worried but theo much brexit, fiscal tightening that will occur in 2021 by most governments. that is really strong in countries like the u.s., canada, and the u.k. it mean fordoes

emerging-market currencies that are cyclical and high-yield? >> that is an excellent point. you can also have commodity parity, as well. risk.s the major downside if the parliaments and congress allow this to go through next you really get a risk of a double level recession. currencies, they will get hit hard. , stevee is good news mnuchin is talking to nancy pelosi and the democrats. $900 billion fiscal stimulus package that will go a long way. it is funny we are

talking about potential for fiscal tightening. pushing for another stimulus bill in the u.s. you worried about monetary policy? there has been concerns, implications for the treasuries when and if we finally get to that. >> i think we are a long way from monetary policy being tightened, i think years away. it will not happen in any of the economies i cover next year, or the year after that. fiscal banks are increasing the size of the balance sheet, the ecb tomorrow. need to benk we worried about it. haidi: blame us for the aussie. iron ore roaring ahead. negative headlines over trade tensions. downsidehe medium turn

for the rally? aussie is at the lower end of the value. the value ranges between 72 and -- it is at the low end. i can see it easily lifting further in the near term. next year, about 78, 70 nine cents. -- $.79. the downside is tensions between australia and chinese government. mainly about agricultural exports, which are much -- and of course, the preset fiscal tightening in the global economy. there are concerns. the fundamentals are still favorable to the aussie dollar. shery: it seems the fundamentals

are also favorable for the chinese yuan. we see the record trade surplus. we see off-site risk? >> most definitely. we are on the most optimistic .nd -- end it will go down against the u.s. dollar. that will be driven by china's much stronger economy more or less than anywhere else. and their high interest rates. you can get over 3% on a 10 year government bond. you cannot get near that in europe or the u.s. these benefits are being exasperated by the chinese government slowly opening up capital markets to foreigners to in this story out of china. is where they were.

just the u.s. china trade tension a few years ago. shery: joseph capurso, great have you -- great having you on. still to come, tesla's latest trip to the capital markets will supercharge the company with more cash than most s&p 500 members. we will break down the numbers. if you are away from a screen, find in-depth analysis on the day big newsmakers on bloomberg radio, broadcasting live from our studio in hong kong. listen with the app radio plus, or bloombergradio.com. plenty more ahead. stay with us. ♪

shery: breaking out of japan. the october core machine number orders. a huge jump for the month of october. month of month growth of 17.1%. this is coming from contraction territory. the expectation was growth of around 2.5%. this is a huge beat. 17.1% growth. perhaps supported by stronger export demand. recovery in exports around the region. year on year, it is still a growing 2.8%.

the expectation was a contraction. 10 consecutive months of contraction for machine orders, a leading indicator of investment. finally in the green, year on year growth of two point 8%. month on month, more than 17%. tesla soaring over sevenfold. they have been cashing in on the valuation. the latest trip to the capital markets means it could be raising more cash this year than what most in the s&p 500 have on their balance sheet. let's bring in ed ludlow. what are they going to use the cash on? >> elon musk calls it a war chest. $6wanted to raise capex to billion. they have all of these projects around the world. $1 new factory will cost billion. a 5 million square-foot facility. they want to build it quickly in germany. they want to grow their presence out of shanghai.

right now in storage capacity, what tesla can build, is around 800,000 vehicles per year. we know tesla wants to grow well beyond that, delivering 20 million vehicles by the end of the decade. the automotive industry is expensive, capital-intensive. a lot of that capital is going to go into the growth story potentially year. haidi: what about the debt load? bears .2.omething the you see it is around $15 billion in short and long-term. but it is a stated ambition of tesla and elon musk to pay it down and change the narrative around the story. think to 2018, they were so close to bankruptcy. it has been able to go back to the capital markets. the main message was it was a prudent and strategic move by tesla, well-timed to take

advantage of the runoff in their shares. when it comes to debt, they will pay it down. but it's not really a pressure point for the stock right now. musk personally moving to texas. tell us this story. >> texas really important. they hope to build the suv and cyber truck. it's also closer to the spacex activities. elon has had a fractious relationship with california. he said they were more complacent, but more driven about him being a hands-on type of manager, wanting to be close to the action. a lot of it is in texas. ludlow in san francisco. not a fan of california, anymore. a quick check of the latest business flash headlines. in an ipoet to raise above its range.

it fell 30 million don't -- shares after marketing them at $90 to $95. at that price, doordash has a value of about 38 billion dollars. it's one of the largest this year. -- fellurity's provider in late trading after it found it had been hacked. the attackers were "a nation with sensitive computer -- capabilities'they test of the defenses of the computer network. it has not named the suspect country. apple is launching its first ever overeager headphones to challenge bose and sony, and take revenue from the iphone. it is at $550. noise cancellation and a 20 hour battery life. they are among the most expensive in the market. after beats by dr. dre. shery: japan and south korea are coming online. let's turn to sophie for what to

watch. eye on keeping an japanese tourism related names. the administration doubled down on the domestic campaign. the go to campaign was to be extended through june. , we are watching hyundai motors. they have completed talks with softbank to acquire the robot unit for 800 billion to 900 billionwon. korean stocks after we saw shares slump on tuesday after the government -- expecting supplies of 44 million people being vaccinated, based on what the government secured. coming up next, we speak exclusively to the union bank vice chair about the push, and a

philippine business tycoon will also be joining us. we also have the market opens in seoul and tokyo. this is bloomberg. ♪ in a land not so far away, people are saving hundreds

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shery: welcome to daybreak asia. i shery ahn. haidi: and i'm haidi stroud-watts. justs major markets have opened for trade. asia markets gain. republican leaders and the administration are pushing a new $900 billion relief package. more than $700 billion of chinese stocks will be unlocked

for sale next year. sinceould be the most 2011. the u.k. rolls out the world's first covid vaccine in the u.s. could follow suit this week. president-elect joe biden is pledging 100 million doses in his first 100 days in office. shery: japan and south korea coming online. after a three-day loss for the nikkei, we are seeing gains. keeping an eye on travel names. looking to extend the campaign to boost domestic tourism. traders watching for any details around debt issuance. tax revenue this fiscal year may fall short and that would require more supply. the finance ministry to discuss its bond issuance strategy. kospi resuming gains after

stalling on tuesday, adding 0.9% this morning and the korean won holding steady. bloomberg intelligence does see 1000 for the currency if that technical support level is breached. let's switch out the board to look elsewhere. aussie shares, we are seeing them lead higher by health care, tax, and consumer names. winning streakt since june. extending and u.s. futures gaining ground. a lot of focus on what is going on in the bond space. the 10 year yield edging higher. what tdo flag securities has to say about next

year. they see the u.s. 10 year staying below 1%. -- given that larger supply is unlikely even if stimulus comes in at $1 trillion. haidi: the treasury secretary stimulusnted that package to house speaker nancy pelosi. optimism that this could get done soon has asian stocks following the u.s. record close earlier. hopes tempering the virus concern. if you look at the price action in the markets, it is still very bullish. i wonder how much upside has already been priced in. >> the fact that there is still a chance the stimulus could be done before year-end probably can add a little more momentum

to equity markets. it has been talked about for some time. i'm sure there were traders who had doubts whether they could cross the line and get this thing signed off. it is still not a done deal. we haven't heard from mitch mcconnell. the fact that steven mnuchin is presenting it pushes it closer to that. that is what traders are optimistic about. there will be a lot of attention on the hong kong markets. hang seng has been on the back foot. new social restrictions coming into place as well. whetherlooking to see that is enough consolidation. there will be some concerns about whether more companies want to try to lock in some of these relatively high stock prices. the fact that u.s. markets are

showing fresh momentum will be a good thing for hong kong. good sign across asian markets. tokyo is off to a decent start this morning. there will be a lot of attention on what happens there. we've seen the stories saying that the business situation is more stable in hong kong than it has been for several months. investors may well buy into that. certainly. also seeing a lot of attention on what happens with brexit. where are we going to see any reaction to this? chanceainly there's a that because a deal wasn't fully expected, boris johnson is going to meet the european leaders today. it sounds as though they are

getting closer on a deal. there is room for a bit of strength in the pound and that will spill over into other markets. the bigger story this week is probably to do with the central bank. the euro has been relatively strong against other currencies as well. there is some concern that the european central bank could start talking down its own currency. isthey do that, the flipside it will generate u.s. dollar strength. asian markets have been enjoying the dollar being relatively weak. if there is any turnaround in the euro, that will certainly impact asian markets as well. what happens with the ecb this week is probably a bigger issue for asian investors than whatever happens with brexit. that will affect the yuan and

other major currencies as well. shery: mark cranfield there. you can get more on brexit and all the days trading around other headlines on our markets live blog on the bloomberg. you can get a run down one click. of course there is commentary and analysis. you can find out what is affecting new investments right now. let's get to karina mitchell. thehe u.k. is launching world's first covid vaccine with the u.s. set to follow suit. approaching 68 million. joe biden pledging 100 million first 100ses in his days in office. switzerland may cut opening hours for shops and restaurants. antigovernment protesters in thailand plan to step up their theaign this week, pushing

royal family. they are aiming to stage what they call an important event on thailand constitution day as the government approves a $750 million program to boost consumer spending. iraq is set to bail out with a multibillion-dollar oil deal including money upfront for long-term supplies. beijingst example of lending to struggling producers. is yet tocabinet approve the deal. australia has revealed legislation to force digital platforms to pay for news on their site. the government will compel google and facebook to compensate publishers for the value their stories generate.

the treasurer says youtube and instagram are not currently included. global news, 24 hours a day, on-air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. ahead, we will speak exclusively to the chairman and ceo of the philippines oldest conglomerate. signs up next, promising from the astrazeneca vaccine. questions still remain over how well it works in older people. this is bloomberg. ♪

shery: here's a check on the markets. we are seeing japan's nikkei gaining ground, up 0.7%. have the we do

japanese yen holding steady at that 104 level. we did get machine orders earlier today jumping more than 17% month on month, which would be the biggest jump on record. the kospi also gaining ground and reversing yesterday's losses after falling from that record high. sawave a sea of green as we u.s. stocks closing at record highs. treasury secretary steven mnuchin says he's presented a $916 billion a proposal which has been reviewed by the president and top republicans. our senior international editor has more details on the plan. there were key sticking points including state aid, not to mention liability for businesses. what are we expecting now? is this the final stretch? can we get a package soon? >> that is the real question.

this is the first significant move by the white house since election day. we haven't seen much movement from the trump administration to break this impasse. this is major in terms of a proposal being offered. from the treasury secretary which he says he has backing from the president, includes stimulus checks. something that members of both sides of the aisle favor, and also incoming president joe biden. 600 per qualifying adult with another 600 per child. that would come in place of that $300 a week supplemental unemployment benefits included in the bipartisan proposal. aid to60 billion for state and local authorities. mitch mcconnell is going to have

to agree to come to the table. it looks like the democrats are on board initially with this package. idea ofer floated the setting aside the toughest elements in this aid package. the democrats rejected that right away. so far doesn't have any comments about this current package. but liability protection has been a key priority for mitch mcconnell. this is a serious package. it includes a lot of things that both sides want. if they can get republicans in the senate on board, it looks like it could move. there's a lot of pressure to do some kind of deal. shery: when it comes to the u.s. vaccination program, it feels like they are on the same page about needing to get this rolled out. >> we are seeing joe biden come

up with this kind of catchy proposal of getting 100 million doses of the coronavirus vaccine distributed in the first 100 whichf his administration starts january 20. that is an ambitious goal. getting vaccines to most americans would be costly. he's calling on congress to designate some funding to try to make that happen. topony fauci is the infectious disease expert in the u.s. and will continue in that role. -- he says itis is doable. president trump earlier raised the possibility of invoking the defense production act to require companies to prioritize things for national security like a vaccine. it is unclear whether that would be something the biden

administration would tap. when it comes to that particular vaccine, there are some concerns regarding older people. >> this vaccine that has been --eloped by astrazeneca and they areare saying seeing protection against severe covid-19 in a peer-reviewed study. there are some concerns about older adults. sure that it can work in the same way. the efficacy couldn't be assessed in that older age group. pointnot saying at this that there is potentially a problem, just that they do not have the same goals that they do for younger people. shery: senior international

editor jodi schneider there. coming up next, speaking to union bank of the philippines. digitalization and outlook for the sector as the pandemic spurs online demand. this is bloomberg. ♪

shery: this week singapore fintech festival has underscored the need for innovation. lendersdigital only have announced plans to enter the market. upacy banks are wrapping their own online offerings. we are joined by the union bank of the philippines vice chairman. great to have you with us. now we are seeing this digital revolution happen. more and more people are not only banking online, they are working online. have they become more

vulnerable? have you had to raise your cybersecurity spending? how are you doing on that front? clearly, cybersecurity is number one in our risk maps. onve spent a lot early because we started our transformation journey over eight years ago and accelerated it for years ago. , weg into this pandemic have our cybersecurity infrastructure in place. the dimension that it adds in terms of risk is that the increased connectivity on both sides, the work from home sideorce and the customer requires us to be a little more vigilant in terms of device protection as well as protection of the communication network.

clearly that is an important thing. it will become even more important in the future. but we are ready and we've made the investments already ahead of time. shery: does that mean that you are not expecting a rise in cost on that front, at least not in the short term? biggerink it will be a cost going forward, but at the same time, we've increased our operating leverage and i think that is the same for most mainstream banks in terms of doing a little more rightsizing to the market. we have a lot of productivity gains in terms of technology investment. at the same time, we expect the increased competition and

adoption of digital by customers would actually expand the market. markets,y in emerging where you have a huge 70% that are under banked. cybersecurity investments might increase, but that will be offset by other gains. i don't expect that our operating expenses will increase disproportionate to the growth in our revenues. i think our margins will improve. about yourme ask loan book. how is that looking? how is demand looking? we have used the judgment calls that were allowed under our models to basically do a macro look.

banks in the philippines have provisioned ahead of the curve. creditstill expect peak stress probably in the second quarter of 2021 and we are preparing for that. clearly, we are well capitalized. the industry is profitable. the loan book has frank and i think this is very consistent with the destruction of demand. and hopefully that will be the differentn calculations or forecasts that will have growth in 2021 and 2022 as werowth in recover from this pandemic. book is clearly very dependent on gdp growth and we

expect that next year. but our loan book has shrank. jump do youuch of a see in provisions in the last quarter of this year and first quarter of 2021? we are provisioned for the year. we are done for 2020. we expect maybe one half of the provisions that we made in 2020 into 2021. but we do update our expected credit loss models on a monthly basis and we set the provisions monthly and that is what we will continue to do in 2021. we don't expect it to be difficult to achieve given our current balance sheet strength, capital strength, and continued profitability of the business. haidi: you had a bond sale last

week. when are you expecting to go back to the debt markets? i think not in a while. i think we are very much done with trying to create better matching of reliability. we've accomplished that both on the foreign currency book and on the domestic book. what was interesting about the latest bond sale is that we worked and codeveloped with standard chartered bank to do this on a blockchain model. approachregulatory with the central bank and the security exchange commission. digital.

it ton't actually issue the investors. we issued them traditionally. that is what is interesting going forward. and was democratized allowed foreign workers to participate in this sort of bond. but right now we don't have any plans to do nuance in the future. haidi: that is really interesting. very quickly, we've seen a lot of disruption this year. what are some of the trends that have arisen in this pandemic that you think will be permanent changes? think the biggest trend will be competition. the regulators are giving out

digital bank license. seeing fintech's separately from applying for digital bank license. there looking forward to high probability of open banking regulations. competition ir think is going to stimulate the growth of the market even at the same time that it creates tension between the different participants, simply because we have a huge population and as gdp growth comes forward in the future, we feel that this will be a great opportunity space. i think the other big change is the kind of capabilities that we in the bank need. there's a lot of capabilities we

need to build on. we need to be better at -- haidi: we appreciate your time. we have to leave it there. this is bloomberg. ♪

>> this is daybreak: asia. i'm karina mitchell. steven mnuchin has presented a new $916 billion covid relief proposal to house speaker nancy pelosi. it is the first postelection move by the trump administration to break a months long standoff. he tweeted that he has the backing of republican congressional leaders and president trump. the proposal includes money for state and local governments. the plan is said to be a joint proposal with mccarthy and mcconnell. heading back to singapore after one person on board tested

positive for covid-19. the ship turned back on day three of the four day trip. the passengers asked to quarantine inside their cabins. royal caribbean launched the crews to provide tourism during the pandemic. strict protocols were imposed on passengers. hostels is preparing to what could be the final brexit negotiations with ursula von der leyen. e.u. leaders have lined up to support her with the meeting billed as a final cut off for the deal. both sides say significant differences still remain. , atching gears, car sales two-year slump in demand may be over. deliveries climbed from a year earlier to more than 2 million units. the drive was led by a doubling of demand.

strugglingmakers are with consistently weak sales. global news, 24 hours a day, on-air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. seeing brought upside across equity markets in asia. let's turn to sophie in hong kong for the latest. .> gains in asia in tokyo, the nikkei rising for the first day. in the kospi, all sectors green, and australia extending its winning streak. we are also seeing miners gain ground. want to highlight a note from goldman, raising their price targets to $120.

check in on other assets. topped 3700p 500 for the first time, we do have the u.s. 10 year yield nudging slightly higher but staying below 93 basis points. fresh optimism around stimulus talks in the u.s. a proposal for a $916 billion package. sterling nudging higher but staying below 134. we could see a drop of 6%. keeping an eye on the offshore yuan. j.p. morgan does see the currency finishing the year at 650. it could had to 625 in 2021. this could be its third

year on year drop in consumer prices. with get a preview stephen engle in hong kong. china, is important in obviously, and pork is a stable. i'm looking at two sides to this inflation story or deflation story. could slip into deflation, which would be the first year-over-year decline in consumer prices in over a decade. the last time was in 2009. we know what happened then. economistsmate of surveyed by bloomberg is for zero inflation. not inflation or deflation, but zero, with at least five economists predicting a decline, including bloomberg economics. one half of the story.

the other half is, this is not likely to be a trend according to economists we've spoken to. singlebecause of that commodity, pork. unlike the last period, the cpi slowdown this time is due to one single commodity. on thear, prices surged outbreaks of the african swine fever, but they have eased of late. now, factory deflation is likely to persist because they had all those factory shutdowns during the pandemic. we've had nine straight months of deflation although that has started to improve in the more recent months. copper pricesand have started to soar. that is helping lift the pricing power in factories. we are not likely to see a

least the second quarter of 2021 as the global pandemic starts the recovery and demand starts to recover. haidi: what does that mean for policymakers? >> probably the status quo. they are unlikely to change monetary policy. ppi deflation is improving. the pboc has been signaling for months it wants to start withdrawing stimulus. it is worried about the economy wide debt levels. week inflation may postpone tightening, but shouldn't alter the course. is coregoing into 2021 cpi. ,hat strips out food and energy which according to standard chartered, the trend could be upwards to around 1.5%.

up from the current 0.5%. shery: stephen engle there. coming up next, we hear exclusively from the chairman of the philippines largest conglomerate. we will discuss their wide-ranging business and the outlook for the economy. this is bloomberg. ♪

shery: here's a quick check of the latest headlines. jp morgan high bridge capital is said to be in talks to raise a billion dollars or more dedicated to investing and related financial instruments. sources say the new york-based firm has begun discussions with prospective investors. $2hbridge expects to amass billion to $3 billion. tesla is going back to capital markets for the third time in 10 months. raising as much as $5 billion through stock. the sale is at the market offering. bloomberg intelligence says it could boost tesla's cash balance to $20 billion with its credit quality well in excess of its ratings. robinhood market has reportedly hired goldman sachs to lead preparations for an ipo that

would value the company at more than $20 billion. sources saying the share sales could come next year subject to market conditions. have raisedsaid to $3.3 billion in an ipo. our sources say it sold 33 million shares for $102 each after marketing them as 90 to 95. at that price, it has fully diluted value of about $38 billion. haidi: it is the second day of the 2020 asia summit taking place in singapore. i want to bring in bloomberg markets coanchor haslinda amin. has? haslinda: first of all, it is pretty surreal to be here at an actual conference. we are expecting about 200 people and everyone will have to go through a rapid covid test.

i did one. 15 minutes later, negative. pretty surreal and unusual. pretty uncomfortable meeting people again. on the subject of the philippines, the economy has been bombarded with challenges throughout the year. goldman coming up to say the philippine economy will shrink this year. let's get perspective on how it will be navigating all the challenges. jaime, good to have you with us. >> very nice to see you. speak, vaccines are being inoculated. is there a sense that the worst is over for the philippine economy and the global economy? >> i wouldn't say that things are over. it has been a tough second

quarter. at the year as a whole, you look at the negative effects of the second quarter. the corporation and the country are getting better. downally covid cases are from about 2000 a day in the philippines. capacity at the different hospitals is at about 30%. we were expecting it to be far worse than it is. movingsized companies into 2021 and until a vaccination program really takes place, which could start halfway through 2021, it is going to be hard to see people feeling healthy and safe. haslinda: people are talking about recovery. we had the trade ministry say it will be a v-shaped recovery for the philippines. but perhaps it is l-shaped recovery. what sort of recovery will we

see in the philippines? i tend to be a little more conservative generally, but there are green shoots in one way or another. merchandise exports in the philippines are up. agriculture is up. service industries are down. if you look at the operating statistics, measured on a quarter by quarter basis, foot traffic is up by 10%, 15%. land sales are at about 70% of what they used to be. that is not so bad. the two companies we have, the water company, the energy company, and the telecom company, are all at pre-covid levels. it is a balanced scorecard. essentially transportation is just starting to open up again. people are starting to move again. you've got some positives, some

negatives. from the second quarter to the fourth quarter, we are seeing improvements. consumption is key to the philippines. two thirds of the gdp. when do you expect foot traffic to recover to pre-pandemic levels? >> i think that is going to take a little time. during the pandemic it went down to 15 to 20%. we are now at 30 to 35%. to see it go back to pre-pandemic levels, i don't think is a realistic assumption, certainly not through 2021. people are cautious. generally you won't see movement. things in purchasing new ways. people are getting their products and services in ways. we will have to revisit the

model until a vaccine is available. in the meantime, we are able to continue selling, but the numbers probably won't be up to what they were before until 2025. haslinda: having said that, take us through the tweaks you've had to implement through your business model. talk about the opportunity to rethink the future and how businesses are run. >> across the board, the whole digital infrastructure, we've been investing, has changed substantially. we've had to move quickly. 20% of sales in real estate are done digitally. they don't see the product. that was less than 3% just a year ago. which traditionally have been less digitized, have had to move quickly.

our traditional financial institution has seen online mobile apps moving to a whole different level. i like to think of them as a leader on the banking front. our telecom company is basically a strong reader of the payments platform. that has taken off. have 26 million customers online. our capital expenditures were about 200 billion pesos. about 120. so about 60% of what we had planned. a lot of that is going into telecom infrastructure and support of the different businesses we have. ourt and foremost, keeping people safe and healthy. i think we have achieved that. we have about 250,000

medium-sized industries. we are getting them together. anare treating it as ecosystem that is important to us. to the community at large, we are working with the government. there's a lot of private sector public sector collaboration taking place and we are adjusting to the changing times. adjusting,peaking of not surprising that it was caught in 2020. what are the prospects for 2021? how about renewables? we are the largest green bond issuer in the country. we have reached over a billion dollars. the renewables market is very exciting. we are aiming to have five gigawatts of capacity by 2025. we are working hard to achieve that.

it is not just in the philippines, but around the region. haslinda: when you take a look at your green initiative, how much of the financing that the -- whateds will be timeframe are you looking at? >> fairly substantial. we've been able to raise about $3 billion in financing one way or another this year. bonds are going to our energy sector. our water company was able to raise 500 billion pesos as well. our bank was able to get what they call -- it was less refinancing, but more a covid related bond. on the green side, between our water group and our energy group, we've been able to raise

about $1.5 billion. you for yournk insights. hope to see you in person next time around. and of course we are coming to you live from the asia summit. quite unusual. we are waiting for the guests to arrive. shery: haslinda amin, thank you for that conversation. we have plenty more coming up. the co-ceor from about investment opportunities for the next year. a story that we are keeping an eye on. royal caribbean, the cruise is returning to the singapore port. we knew they had a case of covid-19 identified early wednesday, and they are now turning back. they have confirmed this is the workssaying the system

and they have been working with the government on this monitoring system. there are about 2000 passengers aboard the vessel. you are watching daybreak asia. we will be back after this. ♪

more than $700 billion of

chinese stocks will be unlocked for sale next year, the biggest amount since at least 2011. bloomberg china markets editor sophia is in hong kong. how much of this is a test given the lofty valuations? we have the csi 300 trading near a five-year high. 7% of the entire equity market. it is a significant chunk. a lot of these large shareholders, they look at the markets, they look at these prices, the shares have done extremely well this year. it would almost be a missed opportunity to not sell into this kind of market. , the government is encouraging companies to sell equity rather than debt. so it made equity financing easier, which is why we saw a

lot of initial public offerings. in theume of shares domestic market was extremely high. unlock thata huge will come into effect next year. shery: we are already seeing some announcements today. tuesday,vernight, late we had three companies that announced plans for shareholders to cut their stakes in the next few months. this, wetime we had had this earlier this year, mostly on a smaller trading board in shenzhen. flood of unlocks really pressured the market there. broadly tont spread the rest of the market.

insiders are selling. shareholders are selling. if they think it is time to sell, other smaller minority shareholders follow suit. so it does pressure the broader market. analysts saying about the broader direction of the market aside from this potential test? >> we did a survey and we spoke to a few analysts this month. there is optimism, not a huge amount, but people are expecting maybe 8% gains for next year from these levels. there is a sense that the government will continue to encourage equity financing and trading and china's economy is doing better than most of the world's major economies. the threat is the deleveraging drive. we have that story also from

earlier this week. if the pboc does start to reduce liquidity in the financial system, not only will this cause a spike in bond yields, it will make people more nervous because the equity market in china is liquidity driven. tighten, thate to will impact margin lending, the amount of funds available in systems. that will be a challenge as well. .hery: sophia let's turn to sophie now for what to watch in markets. >> we are watching chinese carmakers after vehicle sales on the mainland rose for a fifth straight month. sales of new energy vehicles more than doubling. maintaining the momentum will be challenging in december. that is according to citibank. state touted itself as

a vaccine distribution hub. vaccines are being brought in by carriers including singapore airlines and moved to temperature controlled warehouses. as g-v holdings is at a modest premium. these are some stocks to watch as we count down to the open. it's get a quick look at how is going elsewhere in the region. gaining, the nikkei ground of more than 1% after optimistic machine orders. automakers are among the gainers in tokyo as well. the kospi was stalling yesterday, up 0.9%. shery: coming up, sequoia capital joins us to discuss tech startups in southeast asia.

reaction from the economist. the china open is next. this is bloomberg. ♪ - [announcer] imagine having fuller, thicker,

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