♪ down toe counting asia's major market open. >> welcome to daybreak asia. frexit talks will run through the weekend although london and brussels one final deal may prove impossible. fourth johnson says no british accept the current offer. the s&p 500 fell from a record

while the nasdaq had its biggest slump in a month. china steps up its drive. it could strengthen control of domestic and foreign companies and challenge u.s. ratings firms. let's get to sophie with the latest on the markets. i'm watching to see if a pullback may be in the works. the stronger aussie dollar has been awake on its profits. kiwi stocks were swinging this morning now to the upside. japanese stock futures are seeing a downside to the open in tokyo. record.retreated from a e-mini's tog nasdaq

the downside. on the currency space. the aussie dollar is under pressure but staying above 74. we will watch a reaction when china comes online to the latest and the s&p that is indicating it will remove china's companies, donald trump's executive order. online, thetalks british pound is under pressure. one official saying that with talks stretching on, that is a downside for sterling to an extent. >> we will get the latest on exit negotiations.

airbnb is another highly anticipated u.s. ipo. it is going higher and higher. reportedly leaning toward a pricing of $67 or $68 per share. the latest sign of exuberance in the u.s. ipo market. that is far exceeding the target range of $56 per share that was already raised. that was the range given earlier this week. investors are clamoring for this stock. american ipos are at an all-time high. we had doordash jump 92% on its debut. of $67 ored pricing $68 of pricing for airbnb represents $47 billion based on

a diluted share count that is what we are expecting right now. this could all change before we see the start of trading on thursday. let's get back to the other top story, frexit negotiations will run through the weekend after leaders failed to reach a breakthrough at a late night dinner. dinner didn't achieve much. we are hearing the gaps are still far part. we also hear they need to reach a decision by this weekend. what is the lay of the land? dinner which the lasted almost three hours, we knew there was going to be no because thekthrough dinner was not about that. it was about injecting political momentum into talks that had stopped. the two still very much at the

table and they will continue to do so until sunday. we know many deadlines have come to pass when it comes to brexit, but it is not being perceived as a make or break moment. key takeaway and this is really the key today is that they are still very much at the table. if the prime minister wanted to walk away, he could have done so. they have extended this by another almost five days. >> he could walk away, but at what political cost to himself? u.k. economy as well? it seems to me that he has a lot of skin in the game. >> for short. the context has changed in -- and not in his favor. we know that international

context has changed. boris johnson thought before that he could count on donald trump for a quick deal. that has all changed after joe biden won the election. ultimately, the point is can he get a deal? that is the political calculus he will have to make. it as a way back home? the upper hand where the u.k. has an upper hand in the talks. it is very much about the regulation. it's about the governance of future package and the future rules so he will have to remain a calculus and go for the deal that he believes is politically better for him. of course the political, international economics are weighing in. >> we're are starting to feel a sense of panic or preparedness

for a no deal. we hear the officials are looking at publishing emergency contingency measures so airplanes can keep flying, trucks can keep crossing borders. do we have an idea if there is no deal by the end of the year with the new year to look like? >> both sides will tell you we are still ready for a no deal. the reality is, nobody knows without looks like. just to shipnot things around, but for everyone who basically does business between the u.k. and europe, we note there is a huge relationship. nos thing of stepping up deal preparations, a lot of it has to do with the optics and the politics. we knew this was coming. i wouldn't read too much into it. optics andut the this is about sending a message that if there is no

breakthrough, the eu is ready to go for a no deal. again, i would stress that if they wanted to walk away, it could have done that today and they decided to stay at the table. >> both sides have a lot to lose if the outcome is a no deal brexit. that was maria covering us from brussels talking about the meeting between boris johnson and ursula von der leyen. let's move to another big negotiating deal. stimulus in the u.s.. those talks have stalled again in washington. renewed concerns about whether a compromise bill can be passed in the coming days. our editor has the latest. it's like the clock is ticking in the u.s.. congress is going to be wrapping up for the year. where do things stand? is there time? congressen happens, will push this to the last minute. they have a little more than a week to do it.

we are still hung up on the same issues that have been with these negotiations for the past several months. that is a liability shield for employers that the republicans to state andthing local governments that the democrats want. we have a framework for another deal on things like small business a, on employment insurance, and several other areas where there is fairly common ground, but they are stuck once again on these issues. there is a bipartisan group of senators trying to work out a compromise that will be except for -- acceptable for both parties. and mitchancy pelosi mcconnell are not engaging directly in negotiations. until they get to that point, not much is going to move. >> in terms of the shape of the

joe biden cabinet, we are starting to see other appointments particularly when it comes to the cleat -- key trades are. woman he has selected a who is the chief trade council. councilhe chief trade for the democrats in the house ways and means committee. she has been a long time china specialist. she has been working as one of the chief lawyers on china issues during parts of the obama administration. expert andn as an that indicates that china is going to be one of the main focuses for president-elect biden when he gets into office. including deciding whether or not to continue some of the tariffs the president trump has put on china and chinese goods and how to approach any

unwinding that may come from that. a somewhat unusual move, because as a congressional staffer going to the chief trade not aador is typically route that is taken in washington, but she had a lot of backing from democrats in that was enough for joe biden to make her his selection for this really pivotal position. let's get to karina mitchell with the first word headlines. >> global coronavirus cases are approaching 70 million. u.s. infections jumping. u.s. fatalities may reach 300,000 by christmas. the u.k. has been criticized for

rapidly approving a shot from pfizer. they announce people with allergies should avoid the shot after a few had a reaction. tehran has blamed israel and claims incrementing material has been recovered. president rouhani says the u.s. can return to the deal at any time. royal caribbean's quantum of the seas was cut -- forced to cut short accrues after a man was found positive. a second test of the original sample came back negative as did further diagnosis.

spacex's rocket prototype starship has crashed back to earth and a massive fireball. the launch was the company's first high-altitude test that went to 40,000 feet above the center of texas before reentry failed. test on tuesday was called off one second for liftoff due to an engine problem. global news 24 hours a day on air and on quicktake by bloomberg. powered by more than 2700 journalists and analysts in more than 120 countries. ahead, u.s. stocks drive on and on. on the progress. and a cio joins us to discuss his market calls and his outlook for 2021. this is bloomberg.

it's looking like asian stocks may be due for a pullback after a broad rally. sophie has been tracking the momentum. what are the signals indicating in the short run? >> we are seeing several indicators for a breather and asian stocks. i want to show you the 14 day weekly rsi across regional markets showing strong upward momentum while underscoring that commissions are looking overheated with the signal strongest for the jci in indonesia. pricei epic index weekly has stayed above the upper band since early november. the big difference here is that the fed is not -- just look at this chart. talking about the bollinger band giving the key differences we are seeing between now and being

rallied in 2017. this is something to focus on. there are more signs of consolidation. is there a case for rereading stocks at this stage? >> yes that was a little bit of a preview. we have rising inflation bets which might provide the move toward rewriting across asia as of vaccine rollout is anticipated. a 2021wing consensus is will be a solid year given recovery prospects. rates will be important factors. ingredient is a weaker dollar. developments from the ecb and fed will be costly -- closely watched. >> get more on these market moves. with vaccine optimism comes a risk that we will see fiscal

tightening going into the new year. if you take that and the concern that some of the essential banks will also need to see monetary tightening sometime soon, is there a concern that we need to start coming down from these valuations that we see? >> quite the contrary. we are in a time now that reminds us of post-world war ii and for the next 30 years of financial repression. i think you will see central-bank rates artificially low for too-five years. they are going to do this by driving up inflation and driving down the value of bonds and cash. this is going to present a real tailwind for equity markets and asset markets for years to come. how we seen that and explain or demonstrate that through portfolios. we want portfolios to be more oriented toward real assets and

less oriented toward fixed income bonds. that is our call for next year and it is a very important one for investors because their bond portfolios are not going to do well especially as the yield curve steepen's next year. >> it sounds like we are still going to be in an environment where technicals, market fundamentals were not as high as they were historically during normal times because of the liquidity situation. in that sense, what does the rotation trade in the next six month look like? >> that's a great question. for the next 6-9 months, what were going to see is a trade into the cyclical stocks we have already begun. we have a long way to go. we are going to see small and medium-size companies outside of the u.s. do well. we are going to see emerging markets come back. and brazil in particular.

then we are going to see -- to the industries and other covert impacted businesses that are going to rally very strongly. for investors, we want them to be fully invested. we do not want them to be waiting opportunistically on the sidelines for a better time to invest. theirwe want them to tilt portfolios to the post-covid world. months from now, the covid impact will diminish and we will be in a new economic cycle with new challenges that will be promising. i have one other comment to make about the world economy which is that if you think about it, if you want to buy a washer or carpet or a bicycle, you have to wait. that means we not only have to resupply the economy, we have to build 16 months worth of goods over the course of the next 12 months when covid and. there is a lot of momentum behind us once we have a sizable

amount of the vaccine distributed. anybody who's tried to buy a refrigerator knows that that is true. what about doordash? about the airbnb valuation getting ready to price? is this going to be an area that is wise for your clients to invest year or is this for out of hand? >> you hit upon the question about valuations for tech stocks. a lot of the stocks, particularly the ones you just mentioned have been beneficiaries of covid. if you want to rent a home instead of going to a hotel. if you want to get food delivered from a grocery store or a restaurant, these have been beneficiaries. the valuations indicate there has been an enormous amount of revenue pull forward. we are concerned about certain companies that are beneficiaries of covid that when they normalize, they will not have the growth rates to value --

justify the valuations. there are markets and companies that will continue to boom. we want our clients to be far more selective than they have been in the last six months. i think it's going to be a bifurcated tech market. 500 has been just about 3700, a pullback today. when we get to the end of 2021, are the indices going to be where they were but the gains are going to come in the rotation place and investments that heidi just mentioned? >> i think you're going to have a modest gain in the indices for 2021. five or 6%. the real alpha is going to be added by picking apart parts of the market where you could earn 10-30% in terms of total return in those areas of the market. you will have to avoid the stocks that have gone to the

moon because of covid. you have to be more selective. if you follow the indices alone, you will be misled as to what you should be doing with portfolios. that includes fixed income because of negative returns in 2021. >> thank you so much. don't forget our interactive tv function, tv . you can watch us live, catch up on past interviews as well as dive into the securities or functions we talk about. plus, become part of the conversation by sending us instant messages during our shows. this is bloomberg. ♪

we are getting breaking news when it comes to the brexit negotiations that broke up without a deal in brussels during a late night working

dinner. agreement mustny respect the u.k.'s independence and sovereignty. determined not to let any fair deal be untested. negotiations remain difficult. we heard earlier they have set a new deadline of sunday to come up with the deal. we heard of talks over dinner between boris johnson and ursula von der leyen ending without a breakthrough. there are still large gaps that remain between the parties about the future of the trading relationship. it was a frank discussion held on wednesday evening according to an official. boris johnson reiterating what we have reported that he is determined to try every route possible to get to a fair deal. certainly, it is not clear that they can come together given the wide gaps.

let's get a quick check of the latest is this flash headlines. overook is being sued complaints of its dominance to crush competition. facebook says the latest case is revisionist history. tesla fell after jp morgan warned that shares are dramatically overvalued and said anyone thinking of increasing its holdings should not do so. one analyst broke that shares have risen more than 800% over the past two years. agreednese chipmaker has to buy a german rival for 4.5 billion u.s. dollars. largest be the world maker of silicon wafer's. china is racing to

ofve the credit worthiness its companies. this is bloomberg. ♪ the usual gifts are just not going to cut it.

we have to find something else. good luck! what does that mean? we are doomed. [laughter] that's it. i figured it out! we're going to give togetherness. that sounds dumb. we're going to take all those family moments and package them. hmm. [laughing] that works.

>> this is daybreak: asia. the u.k. and the eu have agreed to extend top-level brexit talks through the weekend. to brusselsn flew after months of negotiations fail to reach agreement to find .ome optimistic comments stimulus hopes in washington remain on hold as republican and democrat leaders fail to resolve a deadlock over targeted relief. that raises doubts about whether this will lead to coming

legislation. described nancy pelosi and top democrats as obstructionist. president trump has asked to as dozens ofwsuit other states file in support. texas wants to prevent officials from many states from participating in the electoral college next week a mud -- among claims of voter fraud. the states have been given until thursday afternoon to respond. theland's drive to rein in bot has proven no match for further -- foreign investors. it is approaching its strongest level this year. global news 24 hours a day on

air and on quicktake by bloomberg. powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> a new u.s. congressional china'sndicates that creditworthiness is gathering steam. our correspondent joins us from hong kong. we know the chinese government does a lot of top-down control when it comes to the economy. the social credit worthiness story when it comes to individuals has been well-documented. how does this program take a step up from that? it is quite considerably a step up because the current social credit system in china works on individuals. if you act badly in an airport or at a train station, you could be limited from getting train

tickets and the like. this system which has been in the works for more than a decade is about corporate credit -- credit worthiness and responsibility. they are building this up to clean up the bad practices that are prevalent throughout the economy in china. we know about xi jinping's crackdown but this is about institutionalizing for the data collection better business practices. therefore, the companies could if they are put on the red list which is a good thing they could get lower taxes and access to government contracts. if you are a bad company, you could be put on the blacklist and you would have some potential fines and other restrictions. light inll coming to this new u.s. congressional report that they sponsored, but was compiled by a consultancy firm. the 95 page report they gave to

the u.s. congressional body shows that the system of data islection and china as it evolving is far-reaching and could solidify beijing's control over foreign and domestic businesses and ultimately could challenge the dominance of u.s. credit rating agencies. we already know that credit ratings agencies and china are flawed at best. they give 90% of companies in china aaa or aa or above credit ratings. this could improve that as well. this is what the report basically said. the scale of the data aggregation scheme cannot be overstated. in a u.s. context, this would be equivalent to the irs, fbi, epa, usda, fda, hhs, hud, department of edge of the -- energy and education and every courthouse police station and state agency

sharing records across a single platform. it sounds orwellian or maybe it's just what china needs to root out its business practices. >> we are hearing from more pressure from the trump administration about over chinese influence at u.s. colleges. >> mike pompeo has been going on about this for quite some time. he likes to remind everybody he was the head of the cia and he believes he knows the intent of the chinese communist party in the united states. the state department has sent warnings to u.s. colleges warning them about the various investments that are tied to chinese companies. georgia at the georgia institute of technology giving a speech overnight which is having

a runoff in the senate. he made a number of allegations. he said universities are being bought by beijing and u.s. colleges have been letting china steel america science and technology. called for a rigorous review of chinese students and scholars in the united states. he said u.s. colleges have been making bad decisions because they are hooked on communist cash. it has been some criticism already of his comments. one representative called his comments absurd and insulting. doordash the livers and exuberant trading debut that takes its market cap past ford and lululemon. yearll assess the banner

for global ipo's. this is bloomberg. ♪

♪ surged asof doordash much as 92% in its trading debut. this is the latest sign of investor exuberance and what has already been a banner year for ipo's. doordash a market cap

up there with ford and lululemon. >> it is surreal. to the hardment work of all of the people inside the walls of doordash as well as the partnership with our ecosystem, our merchants, everyone outside of our walls in the past four years as well as the confidence that investors have about our future. >> given that you were valued at $16 billion in june, what is your case to investors that you are now worth well more than double that especially out of a pandemic? of doordashtunity is so early. i have always been more focused on chasing customers and excellence versus the scoreboard . any investor can certainly have

their turn of value when the company, but i think what we saw in terms of the demand during the ipo was both a testament to the strong underlying business we have built as well as an appreciation for what it can be in the future. one half of our goal is building a commerce marketplace in which we are bringing everything inside your city to you in minutes not hours or days. the other part of the goal is to take the products we have built inside our marketplace to march -- and give them to merchants in terms of the service so they can build a technology solution just like we have so they can serve their own customers and compete in today's convenience economy. market,wn 50% of the but you do face rapidly changing competition, consolidating competition. what are you doing differently then your peers? why are you seeing this outsized growth?

>> our growth comes from the fact that we always obsess over building a superior product. that can be revealed and a lot of the industry-leading retention aspects studied by analysts. consumerst offering the quality and affordability of the service that have allowed us to grow largely from our existing customers and therefore have a lot more ability to invest and reinvest in acquiring new customers as well as building new products and new geographies. it starts with building a superior product. that is what is also allowed us to build a massive scale advantage which is he in a network-based business like logistics and finally, we have economicsuperior unit

as well as winning parts of the industry such as the suburbs which are not only the biggest part of the industry, the fastest-growing part of the industry, but also the most profitable part of the industry. >> you definitely colonized the suburbs early on. if you have 50% of the market now, what is your outlook? what will your market share b and one year or five years? >> we don't chase market share at doordash. we chase excellence and we chase the customer. we have a lot of work to do. are privileged to serve 390,000 merchants every month. averages.istics are they are not should be did uniformly. there may be certain neighborhoods where we should offer you more selection, get faster, be more affordable. we have a long ways to go. to me, it's about making sure and reminding all of our teams that if we can master the

inputs, then the score will take care of itself. >> that was the ceo of doordash speaking to emily chang of bloomberg technology. let's get more on the big day for doordash. what we should expect on thursday from airbnb. to have you onng today as well. when you look at the news today about doordash, at one point it was up 92%. pricing,ok at airbnb's dow jones reporting $67 or $68. last week, it was something like $42 billion. is this looking like 1999? >> we totally are. grocer.come flashback today.

that was a wonderful business the delivered food exactly like doordash from your local restaurants or markets. it was wonderful marketing. they took care of their customer and they went on a business. that's what i think were -- is. it's a wonderful business for the consumer. although the service is spotty. he said he focused on the customer. i can tell you the service is not that great. the second side of it is, it is not profitable business. this is the best it will ever be for doordash. we literally cannot go anywhere so you have to order. it will never get better for doordash than it is today. and they can't make money, so how is it going to be next year when everyone starts to go to restaurants again? >> the companies who haven't made money quickly and people kept buying stock and going higher? >> no.

when people start comparing things to amazon, you have to add jeff bezos to the mix. when you have him in the mix, it's like having lebron james on your team. uber is another broken company and lyft bang is another broken company. they have taken these mature roque and companies to the public so the public can cash out the venture-capital owners and give the power to them to do a wonderful job cashing out, but now they are mature businesses that are struggling. it would have been nice if they took them public five years ago. >> we are also talking about wish as well as airbnb and doordash. this $160 billion of fundraising we have seen in tech ipo's. how do you sift through who's going to be around and profitable in six months, 12 months, 5-12 your some now. there is talk about which part

of the consumer behavior that has been disrupted by the pandemic will ever return. will people go out to restaurants again to the same extent we did 12 months ago? question.a great we did an analysis of what businesses we think will come back even stronger like casinos and live music. and other businesses that will never be the same like gyms and movie theaters. there's going to be massive disruption in certain areas. one thing that i guarantee you will come back or restaurants. we left scrap to eat with their friends and drink with our friends. it's an entertainment business. eating the same food at home is just not the same. i miss the restaurants tremendously, and i think a lot of people do. what investors have to think about in the future is when companiesback, what the hybrid model will work for and what companies it won't. most food companies don't want

to deliver food, it's not profitable. it serves the market right now, but that's not what they want to be doing. tesla. to me about we had jp morgan saying those shares are dramatically overvalued pointing out that it's up about 8% over the past two years. when you talk about technologies like what tesla is doing, the monetary policy and fiscal environment and we haven't been here before in the pandemic environment. traditional look at valuations and metrics in the same way? do you refer back to historical norms for it to be relevant? need to start you questioning yourself, when you start changing your values. that happened in the late 90's when we started making up new valuations like price to sales is now important than price to earnings.

price to earnings qualitative measure that matters while price to sales can mean a lot of things. price to cheap on sales basis but expensive on a price-to-earnings basis. the fed has created these enormous valuations whether it be tesla or doordash. entire market is overvalued because of the fed. if you think about what will hurt the stocks in tesla included is it the fed starts raising rates again. this party just like in 2000, what killed the market is alan greenspan started raising rates. it took a year or two of rates rising before he killed but that's what will happen here. in economy gets better and 2022 the fed starts raising rates and none of the stocks work anymore and valuations go back to real p/e ratios. investors have to be smart about what they are buying and having

protections against the downside. >> it's a distinction between people who are investing over a long time and people who are not day traders, but they say i'm going to jump in here for six months or a year. it's absolutely right, the fed could be raising rates in 2022. however, they might be waiting longer than that. that gives people more time to write the stock market wave. >> i don't think there's any chance of that. there is so much cash out there and it's just going to be inflationary once people get out again. there is so much cash that they have printed and given to people like we have never seen in history. the fed will be raising rates. they will have to sop up all this capital in superhigh valuations. what i say to people who think they're going to jump in and jump out is 99% of people don't have a million dollars. it will not build wealth by trading. it's not a way for people to make money in any consistent manner.

i have done this my whole life, and i'm one of the few people i think that has been successful and i'm not a day trader, i'm an investor. if i had to buy and sell every day i wouldn't make any. it's bullish for people to want to run around buying stocks or betting on sports or horseracing or lottery tickets if they think this is the way to build wealth. it takes time. to have you the voice of reason. we have some breaking news. with aussie bonds, selling at a negative yield for the very first time. the lowest accepted yield is at -0.01%. that is the first ever negative yield in a three-month bond sale. whene continuing to watch it comes to japanese data

expected to cross the bloomberg. we are waiting on producer price inflation on a yearly and monthly basis. we will bring that to you as soon as it crosses the bloomberg. a lot to come on daybreak asia. this is bloomberg. ♪

>> we are just getting japanese producer place inflation numbers

or deflation numbers crossing the bloomberg. worseraction of 2.2%, than the previous month contraction of 2.1%. this comes after a good run when it comes to japanese economic data ahead of machine orders surging. clearly on the inflation picture, prices still not making much of a move. take a check of the business flash headlines. starbucks has boosted its outlook and says it aims to build more than 20,000 new cafes after the pandemic. the coffee chain has been hit hard by the coronavirus. it has been setting out its latest targets during investor day which also included the rollout of oatmeal across the

entire united states. has agreed toic pay a fine about misleading investors. it the long-running probe found ge failed to tell shareholders that a sizable fortune of its power earnings stemmed from reduction in prior cost estimates. the sec also found cost irregularities in ge's insurance arm. firm hasate equity agreed to buy hma's technology distribution business ingram micro for over $7 billion. the chinese conglomerate has shed billions of dollars and holding since february when authorities announced it would be taken under government control. the ingram deal is the biggest disposal of a chinese company to an overseas buyer this year. the company that manufactures the doors, the delivery drivers arrive at has been seeing an

unexpected boost from doordash. traders need to be careful when looking to buy or they could end up with shares and masonite international corp.. its shares spiked by more than 5% in new york. you have to be careful when you're buying and selling stocks. japan,ad of the open in what d.c.? -- what do you see? >> the esg c has been picking up steam to outpace the regional benchmarks. top fund increasing opportunities here in asia. the outlook is getting rosier. the sentiment around the space

may be deflated somewhat after jp morgan said tesla shares are dramatically overvalued. their price tag it -- target is at $19 for the stock where the street average is 306 $24. asia,ing up on daybreak we will speak with the ceo of a chinese owned brokerage that is expanding into the u.s. market. outlook from our guest dust ahead. we are heading toward the open of trading it comes to korean and japan markets. futures are off.

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. i hope my insurance pays for it. can you tell me how much this will be? - [cashier] 67. - sorry. - wait, have you heard about goodrx? goodrx finds free coupons to help you

save up to 80% on your prescriptions. - wow, i had no idea. - [announcer] goodrx, stop paying too much for your prescriptions. >> welcome to "daybreak: asia." asia's major markets have just opened for trade. other stories this hour, brexit talks will run for the weekend though a final deal may prove impossible. boris johnson says no british leader could accept the terms of the offer. pressure,kets under the stingless standoff in washington, the s&p 500 fell from a record, the nass taxing

its biggest jump in a month. beenngers on a cruise have cleared after a false covid-19 test. our reporter was on it. market reaction with sophie. aphie: in japan, after we saw rise for the nikkei, under pressure for both that index as well as the topics, we are seeing softbank move slightly higher this morning after the group clocked at $11 billion gain from its investment in doordash. sony on watch, shares off by half a percent after we saw funimation agreed to buy crunchyroll. checking out what is going on in losing 1%a, the kospi at the start of trade.

seeing a policy board meeting being held today. let's switch out the boy to check on the boot elsewhere in sydney, we are seeing shares stalling after a seven-day gain. we had tech weighing on the benchmark. we are going to be watching reaction later in china to the s&p index. pound on watch as well. it may rise to 137 next week on a potential brexit deal. u.s. futures tick up a notch this morning after the s&p retreated from a record. treasuries staying within the year's range.

saying the 10 year will stay stable. more twists and turns for treasuries into the 21 by keeping below that 1% level. kathleen: let's go from there to eugenia victorino. are, around the world, feeling better about vaccines and the virus, but still facing the damage they have gone through in 2020 because of lockdowns. if you take china out of the picture, how does the rest of asia look to you when you look into 2021? eugenia: good morning. thanks for having me. on thes clearly recovery, but if you take out picture,m the asian

asia is limping into 2021. the prospect of an earlier than expected rollout of a vaccine poses upside risks to our forecast. outlook, we021's still keep outlook levels below pre-pandemic levels. all this optimism is good but we are not there yet. china, the look at willingness by beijing to impose the market discipline as the market recovers we'll raise its head in 2021. default and regulatory requirements on developers posing downside risks to economic growth in china. is that where we are going to see the move to more tightness from chinese authorities, not from the pboc? eugenia: indeed.

with regards to figure a requirements, it would where its head up again. the structural process of leveraging never left their mind. this is a good opportunity for them. unprofitables of quarters would intensify the leveraging process. what is the risk of premature tightening, whether fiscal or monetary? eugenia: we have already seen some financial condition tightening in china, so even though the policy rates have we have seen the bank increase over the months of november. wouldectation is the pboc

keep it steady. providingeed approach the quiddity during times of iness would basically cap it the bond yields but not necessarily lead to a decline. how much conviction do you have in further dollar weakness and who do you see as being the biggest beneficiary if that trend continues into next year? as far as dollar weakness is concerned, that is basically a broad expectation but even beyond the expectation of dollar weakness, the fundamentals are supportive of further appreciation in the asian currency. variousends on the central banks' appetite to allow that appreciation is so long -- but so long as they are strong

enough, i don't believe asian central banks would be able to hold certain levels for long. given how you painted the outlook for asia, you are the head of asia strategy, where should i put my money? where should anyone put their money in asia if they want to make some in 2021? it is time to get more upside, and there is more upside with the yuan. think the philippine currency will continue to outperform considering it is unlikely to at leastast enough until the first half of the year. theou are looking at plastic carry train, i think the

indonesian currency because the central bank is of the view that its currency is undervalued. thes not likely to stay on path when that has happened. great to have you with us as always. let's get you to karina mitchell with the first would headlines. >> coronavirus cases are approaching 70 million with u.s. infections jumping in the first six of first eight days in december. u.s. fatalities real top through the thousand by christmas. the u.k. has been criticized for rapidly approving a shot from pfizer and the national health service as people with severe allergies should avoid the shot after some had adverse reactions. president trump is asked to join a texas laws are his defeat. prevent officials from michigan, wisconsin, georgia, and pennsylvania from participating in the electoral college next week amid claims of

voter fraud. the supreme court has given those estates until thursday afternoon to respond. creates sata suit is a stunt. hunter biden says he is under investigation by tax authorities in delaware. he became a target during the campaign when his foreign business dealings were highlighted by the trump campaign. theays he is confident investigation will show he handled his affairs appropriately. as father transition office issued a statement of support. iran says the weapon that killed his top nuclear scientist originated in a nato nation though it has yet to deliver any evidence. claims planed israel and incriminating materials have been recovered. israel is not a nato member but is an ally. president rouhani says the president can return to the 2015 nuclear deal at any time with one signature, no negotiation. 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. this -- back to you. trading for webull has a meteoric rise. we ask the ceo how he is competing with the likes of robinhood. , talk tobrexit breaks a door through the weekend though both sides are warning that a final deal may prove out of reach. this is bloomberg. ♪

brexit talks we'll run through the weekend after u.k. and eu leaders failed to reach a last-minute breakthrough. let's get the latest. there seems to be a commitment that we will get a deal, this new deadline over the weekend. both sides saying that the gaps

remain very far apart. >> that is right. this was supposed to be a breakthrough to the impasse, it seems to have fallen on the brexit trade talks. the dinner went on for three hours. with his chief negotiator have undermined the eu chief negotiator. went onugh this dinner for more than three hours, they did not seem to be able to reach a breakthrough, saying there are major differences that remained. both sides saying they still want a deal. tweeting afterwards that they understand each other's positions and they agree talks should continue. those talks will continue through tomorrow, friday, and the weekend. deadline will be

sunday where they will decide on the future of the talks and what we understand is whether the talks will and or they will keep going because a deal is inside. when you lead the political tea leaves, when you look at what you have heard from politicians, investors, what is the possible tipping point to get them towards a deal? we know there are three main issues, what do you think is the most important thing? importantmost sticking point at the moment is fair competition. this has to do with european union concerns, should they strengthen their labor laws and environmental protection bosque, this would give the u.k. a window to be more competitive to business if they did not also have to strengthen those laws and we heard today before this merkel, theangela more powerful politician in

-- we, who said this area know there are concerns about how the deal or at a be policed and there is concerns about fishery. the biggest sticking point up your to be this level playing field and i imagine that will be the focus over the next few days before we get this next decision on sunday. >> thank you so much, joining us with that focus on this whole question of a level playing field. looking at banks, continuing to wait for an outcome after years of preparation. deutsche bank leading on its investment bank to lead its turnaround amid those fears. ceo told bloomberg what he is focusing on moving ahead. >> i am proud what we delivered. everybody knows that because of covid, it was a more difficult

year than we planned last year. at the same time, at the first investor day, we performed well. we are in line with our plan on the cop decided, so we have delivered and it shows that the underlying growth in the business is strong, resilient, and gives us the confidence of the coming years. , there isestment bank a clear outperformance and we have underestimated the potential of the investment bank when we came up with this strategy last year in july. we performed well in those businesses where we decided to be strong, where we decided to stay in the business. we have reengaged with clients. the impact from exiting the equities business less than rentech -- less than we anticipated. later today, the sustainability of the revenues in the investment bank is strong. we are happy with the

performance, but that does not change the strategy. talk about the inperformance of securities, october, you increase the revenue outlook to significantly higher. if we talk about fixed income trading, in the fourth quarter, it -- has the good momentum continue? could we see double-digit growth in the fourth quarter? >> that c. we still have months to go but the momentum in october and november was satisfying to us. we have seen continued momentum in the investment bank. year is over when 12 months are done so we have to go through december. for the time being, i am satisfied. >> overall, it could be another good quarter for the trading business. >> we are always trying to get better and that means that of course it is our goal to be

ahead of last year and in october and november, we have seen good momentum, and including today, we have 22 days to go and that is what we are doing. peak ofe nearing the the trading boom we have seen and what does it mean for revenues in two to 21 and 2022? 2021 and 2022? >> some of the outperformance has been covid-related, there is no doubt. but i am proud of the fact that in those businesses where we made changes last year, infix, but also the financing business, where he said this is the strength of deutsche bank, it will be a global trend that there is more finance than demand. deutsche bank is the powerhouse in financing. later today, they will show you

in detail what kind of revenue stream is sustainable. i do believe that a good part of the outperformance which we have seen in 2020 is sustainable and we are confident also for the investment bank in 2021 and 2022, no acknowledging that some of the outperformance was driven by the markets in 2020. >> if we look at the corporate bank and private bank, there is an impact by the pandemic and there continues, though interest rates. how much more pessimistic argue about those two areas compared to two years ago when you think about the strategy of deutsche bank? shown how both have resilient and strong they are in the markets. they have done everything to mitigate the additional headwind from the interest rate environment. the corporate bank has passed on negative interest rates to 17

billion deposits, far more than we anticipated. that makes us confident that the underlying growth which we have seen in 2020, if we continue to do that interdict 21 and 2022, we will achieve our revenue targets. 2021 and 2022, we will achieve our revenue targets. ceo theree bank speaking to bloomberg. we have plenty more to come. this is bloomberg. ♪

check of thequick latest business flash headlines. facebook being sued by u.s. antitrust officials over claims it has been using its dominant position to crush competition. it is the second time in two months the government has brought a monopoly case against facebook and the deceits to

unwind its acquisition of instagram and whatsapp. case is says the latest revisionist history. 90% onh soared more than debuting in new york. price shares at $102. the stock opened at $182, climbed as high as $195 before falling back. delivery has been a bright spot during the pandemic with demand boosted. the doordash ipo is the third-largest on the u.s. exchange this year. general electric has agreed to pay a $200 million fine for misleading investors about the finances of its gas powered unit. ge failed to tell shareholders that a portion of its power earnings in 2016 at 2017 stemmed from reductions in prayer cost estimates. the sec found cost irregularities in ge's insurance

arm. spacex's starship prototype has crashed back to earth in a massive fireball. the launch was the company's first altitude test. feet above40,000 texas before its three engines failed to decelerate its dissent. the starship program aims to take humans to mars and the moon. a test lunch on tuesday was called off one second before liftoff due to an engine problem. tradition,ange in one of the most high-profile gatherings is moving from its home in switzerland to singapore next may. the forum will go digital next month as the virus continues to take a toll. the founder and executive chairman spoke with david rubenstein about these pandemic challenges. you, in the end of january, for the last 50 years

or so, the elites of the world, the most famous business people, most famous heads of state gather in davos to talk about global issues. this january, is that going to be possible? we came together during the usual davos week. it is important to look at the agenda of 2021 and to shape the agenda. we are at a crossroads. that meeting is not enough so we combined it with a meeting where people physically will meet again later in may, hopefully vaccines and testing will allow us to do so. toid: how have you been able adapt to running the world economic forum with covid? are you working remotely or is it different in switzerland than in the united states where you can go into the office? stuff worksf our

remotely. we said, you should come if possible once a week to the .ffice of being together and teamwork. about 15, 20 people, we meet regularly in the office practically every day. course, it has changed very much with many videoconferences , we will not say come back just to meet in person , and videoconferencing will disappear. we will look for a combination of the two because videoconferencing is good to information,ledge,

but physical meetings are important. david: what lessons have you learned about how to deal with people or deal with the world economic forum as a result of covid? klaus: the key lesson is we have to cultivate resilience. i think we have to develop for our society, a higher degree of resilience. will be one of the themes of the next annual meeting. that is clouse schwab speaking with david rubenstein. up next, what appears to be a false positive test on singapore's clues to nowhere, highlights the perils of resuming tourism. we will have all the details just ahead and we are going to later be taking a look at webull.

keep it right here, this is bloomberg. ♪

." this is "daybreak: asia have agreed to extend brexit talks to the weekend on warnings that a deal may prove impossible. boris johnson flew to brussels after months of negotiations fail to reach an agreement. significant differences do remain and london said a deal is by no means certain. meanwhile, stimulus hopes in washington remain on hold as republican and democrat leaders failed to resolve a deadlock. whetherses doubts about the bipartisan proposal will

lead to legislation in the coming days. mcconnell describes nancy pelosi and top democrats as obstructionist. in hisd's drive to rein proving domestic foreign investors. the currency has rallied and is approaching its strongest level this year. last month's gain was asia's best currency performance. it pushed for reserves to a new record. world'se may launch the first electric air taxi service in the next three years according to germany's volcop ter. it starts to hope -- it hopes to start operations. the company says cross-border attorney may be on offer.

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. this is bloomberg. let's look at how our markets are faring. we are seeing tech among the biggest drives across the region. declines have eased somewhat. that minersghlight are under pressure in australia. futures are continuing to track towards that 150 level. names are on the decline. this after overnight, j.p. morgan warned that tesla shares are dramatically overvalued. board, the euro hovering around that 121 level.

cable under pressure. we get downside for sterling may be contagious. talks are still ongoing. also want to highlight the green one, just ahead of a policy financialsion and the market trend report to admit day. the dollar just holding onto gains. the best winning streak for a month unaided tense stimulus talks. kathleen: thank you. talks remained deadlocked in washington over government aid. let's get more from our senior international editor. where are we on this relief package? it seems to have boiled down to two key issues. key issues but they

are big stumbling blocks. pelosi, a democrat, and stephen mnuchin have expressed some optimism that they could reach a deal. the white house came out with a package earlier this week, the first that they have really come up with since the election. table,re things on the but there is a lot of work to be done and they have to do this quickly. they need to get this done in the next few days to get it through congress before they go off and holiday break. in the start of the new year, we will have a new congress and they would have to start over again. there is a lot of pressure to get this done. are the key issues business liability shield and aid to state and local governments. mitch mcconnell scolded nancy pelosi and democratic leader chuck schumer saying they were obstructionists, they were not working toward a deal. then it gets fired back at him. chris coons told reporters that

he and others are trying to release a proposal on liability protections in order to break that impasse. it could be a six-month moratorium on coronavirus related lawsuits to give employers enhanced ability to defend themselves. the virus affecting americans at an increasing clip in the last week. what is the trend we are seeing at what are we seeing when it comes to hospitalization rates? jodi: this is a pretty sobering trend. we are basically seeing what some have predicted when people went out at thanksgiving, that there was going to be a surge in december and we are seeing that. for six of december's first eight days, the average of new cases is at a terrifying peak. thatdc is forecasting there will be three of the thousand deaths by christmas.

-- there will be 300,000 deaths by christmas. we had not really been seeing the deaths creep up. december,an a week in deaths were more than double during the same time in november. seeing this, we are out is almost a third of new cases. rising across the eastern seaboard as well. hospitals are not able to keep up. what is the latest with vaccine trials? jodi: we are seeing things move forward here. johnson & johnson is cutting the size of its covid-19 vaccine just from 60,000 to 40,000. researchers are saying that they

can draw conclusions on the smaller trial size because the virus is so pervasive, saying that they can get what they need from that smaller size and the change in size does not indicate the results will come out on a different timetable. to approvemost set that vaccine, they have to start getting it to people soon. joe making the statement this week that in the first 100 days of his administration, starting getanuary 20, he hopes to 100 million people vaccinated, which is an investors goal -- which is an investors goal, one that dr. fauci, the chief scientist on this virus and bill remain as joe biden's chief scientist, says that he thinks int goal could be reachable january through march if they are able to go ahead and get these approved quickly.

jodi schneider there with the latest on the virus situation. suspected false positive on singapore's cruise to nowhere is highlighting the perils of reviving the cruise industry. cut short if to trip after passengers -- a passenger appeared to have been wrongly diagnosed positive with covid-19. our transport reporter was on that ship. i can only imagine how nerve-racking, how much anxiety there was among people on that ship when news broke that potentially one of the passengers tested positive. how didthis turns in -- this turn into a false positive? >> it happened early in the morning when we got the announcement that the ship was going into quarantine and we are turning back to singapore. earlier, following protocols from the government.

most of us basically were on the ship for 14 hours after we arrived in singapore because that government had to do contact tracing to see whether there were other passengers on the vessel that may have come in contact with this patient that tested positive initially. 7:30, we were out to disembark in staggered disembark meant, so as a precaution that was put in measure by the singapore government when they started degrees, everyone who reached the vessel will need to take a rapid testing before they can leave the cruise terminal. we only found out about the fact that this patient was tested negative twice after he was taken to the hospital. ride withn a bit of a

all of the waiting and everything. thet least you are not like people in japan who were on a cruise ship for a month at the beginning of the outbreak. in terms of the efforts to revive travel during the pandemic, in a way, it seems like he's robert test kits were important in making this less bad than it might have been. kyunghee: i think that is why the singapore government made sure you had certain testing in place. one of the things that deterred people from traveling is the 14 day quarantine. the singapore government is trying to replace that quarantine with testing. testings been rigorous before people get on the cruise. everyone who gets on the cruise will have to be tested through pcr testing before they can get andhe vessel itself

afterwards, another test to make sure nothing happens while we are on the ship itself. there is a lot of challenges because obviously, a lot of things can happen that we don't know and that is why there was vigorous contact tracing. tracing had to have a token with them on the ship that if something like what happened yesterday happens, the authorities can check to see who might have come in contact and quickly eliminate input those people in isolation and testing before further spread to the community. tohink the government tried put in measures to ensure that we can restart this safely. course, anything could happen. >> we are glad you do not have to spend too long on that ship

and we thank you for sharing your first hand experience with us. to anthony speak denier, the ceo of the chinese owned brokerage that has been peeling off robinhood clients. platform'sabout his meteoric rise. this is bloomberg. ♪

time for a look at our business flash headlines. $68 a priced its ipo at share, that is above its marketed range, setting the company on course to raise $3.5 billion. the pricing gives airbnb a valuation of $47 billion and continues an ipo frenzy in what has been a record year for ipo's. crunchyrolling its video business to sony for $1 billion. library bolsters sony's of japanese content owner through its funimation group. it is part of a move by at&t to overhaul warner media, a business it acquired as part of its purchase of time warner. at&t has old billings and assets in the past year as it looks to

reduce its debt load. a taiwanese chipmaker has agreed for $4.5german rival billion in another deal in an already record year for the semiconductor industry. the new entity would be the largest makers of silicon wafer's -- wafers. this year is set to top 16 record.- 2016's >> robinhood is losing thousands of clients to a rival, webull. it was founded by an alibaba alumnus. the ceo joins us now. great to have you with us. how much of a head start does robinhood have? it has become synonymous with the revival of retail trading, particularly in the pandemic. how much most ground do you

expect webull to make in the market? anthony: robinhood started back in 2013, we just started 2.5 years ago. there is a significant window where robinhood had a head start but they are also the on zero commission and they opened up this market and we are basically following in the trail that they blazed and doing it a little differently. the early adopter advantage robinhood has. let me move onto to a more concerning issue which is the environment between washington and beijing. islier today, the s&p index planning to remove major chinese stocks from their indices because of the presidential executive order that was signed earlier. that relationship, when it pertains to payment platforms or the financial sector, seems to be deteriorating. do you suspect this will cause problems? anthony: i don't, actually. we spent a lot of time looking

at that. when it comes down to it, webull financial is a u.s. broker-deal and we are a separate entity than our parent company. our parent company is a technology company that enhances the app. in the u.s., we are a broker dealer, keeping data in the u.s., adding registered people deal with their account. kathleen: one of the things fueling your rise is the fact that we had this huge downturn in stocks and the ralley comes back, we are going to end the year higher than we started and you had a lot of people at home, even young people, jumping into markets, trading for the first time. what happens when the bull market plateaus? what happens if we get another correction or a bear market? is that the point where you're better hope it is often the future because it might stop your growth in its tracks? anthony: i think if the bear market does come to an end, what is going to come out of this is a generation of smarter traders,

especially smart or dumb traders who understand the financial markets more than the generations before because there is access, there is low barriers or in some cases zero barriers and more educational content for them to learn. when downturns happen, they have the tools to navigate that. >> what about financing new rebound? people are saying if you hope to become a unicorn like some of the ipo's we are seeing, that is what you need, more money. anthony: in a zero commission world, especially retail, the margins are thin. it is all about expansion and scale and webull's plans have always been to expand globally. expand as far as we can. we are in conversations to expand our capital base. geographic focus

as you are holding at the moment? anthony: we are clearly in the u.s., we are doing well and we are proud of where we have come in the last 2.5 years. i think the next step will be directed towards the asian markets but we are not going to stop there. we see canada, europe, and south america as our target markets in the next four years. denier, thankhony you for joining us. up next, why some of the largest investors are starting to separate chinese stocks from other emerging markets and what this means for the portfolio strategy. this is bloomberg. ♪

the economic growth between china and other emerging market is prompting some of the largest investors to change how to allocate money to the asset class. that is prompting an exodus of funds into china. let's cross to our markets reporter for more. how are investors approaching china as the pandemic widens between the country and the rest of the emerging markets? is it people realizing that china is the second biggest economy, it is not an emerging market anymore? seeing that some of havinggest investors are separate investment strategies just for china. from is increasing demand

clients who previously invested in just global e.m. funds to really target the china growth. china is the second-largest economy in the world and largest e.m. economy, it has become this pool of global growth that can be big nor did. there is this clear case for bigger elevations for that diversification. we are also seeing evidence that this new approach influenced itself. thea equity funds have biggest outperformance against global e.m. funds since 2007. elect of these investors are saying they are treating china as a different base when it comes to being an investment destination. livia: yes, especially we can see that in china's pandemic recovery, and it has

outperformed its e.m. peers. their long-term structure, investors are keen on. the economy is still continuing to diversify towards domestic consumption and services and technology. if you look at the gdp, it is the only major economy to grow this year and it is going to expand about 8.2% next year are going to estimates, so that is different from the rest of the emerging markets. china has lagged emerging-market performance as we get a wave of optimism, vaccine optimism, which could fuel more recovery in other parts of the world. temporaryst a correction between these two groups of investments? what is the outlook for next year? livia: chinese stocks have

definitely underperformed since the vaccine and u.s. elections, other e.m. countries are playing catch-up. the outlook for 2021 is still optimistic. china is going to keep rebounding from the pandemic. could lead toency warmer u.s.-china relations. there is the expectation a partial removal of tariffs that could help boost the market. always great to have you. emerging markets reporter there. let's look at's -- let's look at some of the stocks we are watching this morning. the s&p, dow jones have listed for removal effective summer 21st, a similar decision was made by steve russell last week. appended --sions

the latest on the s&p will -- [indiscernible] news, we willto see more consumers receive red envelopes or consumption coupons. this push my beijing billow boost investment in 5g and data centers. keeping an eye on haitian tech after usp platinum equity agreed to buy it tech distribution atiness in a deal valued $7.2 billion. over in singapore, keeping an eye on a tech startup and its plans to raise $2 billion in a new stock offering in the u.s. shares have soared more than , one of the date hottest stocks in asia this year

with a market cap coming it at $100 billion. up, we speak to the chairman of the british chamber of commerce in china about the challenges for u.k. business with cybersecurity, one of the issues on the list. from they've interviews the asia summit just ahead. we will be speaking exclusively to jon bascom the about his outlook for 2021. later, we will discuss threats to japan's security and its relationship with the united states and china with the state minister of defense. we are getting philippine trade data in the next hour and looking at another big story, s&p, dow jones indices to remove china companies subject to a u.s. order. the latest on the brexit talks at the standoff continues. don't want to miss any of that. that is it now for "daybreak: asia."

continues. coverage standby for bloomberg markets: china open. this is bloomberg. ♪ when you switch to xfinity mobile,

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>> it is 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets china open. i am tom mackenzie. david: i am david ingles. we are counting down to the open of trade. talks will-- brexit run through the weekend. a final deal would actually prove impossible. boris johnson says no british leader could accept the terms on offer. tom: