♪ >> a very good morning, i am haidi stroud-watts in sydney. >> i am shery ahn in new york. welcome to daybreak asia. asia faces pressure and investors weigh a relief deal in washington against new virus restrictions. the s&p 500 is on its longest slide since september. haidi: a stimulus plan worth $908 billion, waiting to passing

congress. another program is also on the table. japan says no to go to. they are dropping an internal travel campaign designed to help reboot the virus-hit economy. shery: let's take a look at how asian markets are shaping up. of declines in the u.s.. let's look at what sophie is watching for us. uphie: in australia, asx 200 zero point 1%. the aussie dollar study after two-year high after being -- after reports china is formally banning imports of australian coal supplies. we do have aussie yields continuing to edge a lower, after being pushed downward following westpac's call for the rba to expand the program over six months, over 100 billion

australian dollars. oil very much and focus after opec cut its demand outlook. looking to test $47 a barrel mark. in japan we could see stock losses for the nikkei 225, with stocks in chicago under pressure, keeping in eye on traveling. the yen holding steady around 104. u.s. futures we are seeing nudge higher. the nasdaq gaining ground. on a concernsset against vaccine optimism. 0.2% this morning. shery: our top story, a bipartisan group of u.s. lawmakers announced a $900

billion pandemic relief bill, despite some saying there is no guarantee it will passing congress. >> why did you do this or didn't do that? this was going to expire at the end of this month. now it is up to the leadership to take it and make this happen on a timely basis. from: a competing proposal the treasury similar in size, but different in details, is also circulating. let's bring in david westin. we have been talking about the stimulus bill for the longest time. there are different parts of it. there is also the omnibus bill. make sense of what is happening here and lay it out for us. david: that is a tall order. in a nutshell, people agree roundabout $900 billion. this agreement is if there is protection for the state against liability. this group came up with a proposal, two bills. one has the stuff we agree on

and one has the stuff we don't agree on. let's take those up separately. you mentioned the omnibus bill. by next friday they need to pass the$1.4 trillion to keep government going until next september. the only way to get it going is to attach one to the other. haidi: we also have breaking news. william barr is out. this is just a fortnight after he said there was no evidence found of widespread voter fraud. david: you think those might be connected? it is conceivable. president trump was pleased in recent days. it is not a big shock he is stepping aside before christmas. he appointed jeffrey rosen. he will be the acting attorney general. this is yet one more member of his cabinet who had been a close ally who has had a falling out and left. we had a lot of people leaving before the end of the year, from

the senior management of u.s. government. cani: it is not like they say anything contrary to what is happening on the ground. the electoral college has gone to joe biden. official.is the electoral college met throughout the day. we watched as each state a lector met. every state that was contested by president trump went for mr. biden. california put it over the top about half an hour ago, making it more or less official that joe biden will be the next president of the united states. hearing froml be the president-elect and his national address later. looking at the prepared remarks, he is hitting on themes of unity and healing for the nation. david: that is his job, and it is not an easy one. he has to take this fractured country with people feeling

strongly on both sides of the equation. but a lotbiden won, of people voted for president trump. he has to pull it all together. when he appears it :00 p.m. eastern, the president-elect will do his best to say, it is time to put the election behind us, it is official. let's figure out how we can get together and move in the same direction. westin with a preview. we have full coverage of joe biden's address in the next hour. you have been watching in new york, 11:30 a.m. here in sydney. let's get to karina mitchell. >> good morning. coronavirus have topped 300,000 as the first vaccines rollout. there is likely to be a second lockdown in new york city with non-essential businesses ordered closed. president trump was expected to

-- aan early vaccine shot, shot. anger in europe over tightening virus restrictions. business owners complaining the measures are driving them to bankruptcy. london is expected to enter the u.k.'s toughest social curves as they talk about the mutant strain of covid-19. more than 19 million people will be impacted. japan is discouraging travel over christmas and the new year. sources in brussels see a chance of a deal this week. diplomats close to michel barnier say they have made concessions and are discussing fishing rights. barnier told the remaining 27 e.u. states that a compromise could unlock post-brexit agreement. iran says it needs no permission from opec, saying a doubling of output is practical. its oil meant -- minister says

the cartel has measures in place for a move, amid optimism a new u.s. administration might ease sanctions on iran. they are urging joe biden to return to the nuclear deal, saying it will comply. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am karina mitchell. this is bloomberg. shery: i have more on commodities. prices are at their highest in six years. metals,ook for oil and plus, invest co says the recovery will be inclusive and more robust than after the financial crisis. this is bloomberg. ♪ s. this is bloomberg. ♪

haidi: let's take a look at one of the big movers in the sydney session. this is the australian biomedical science and drug developer, down over 11% as a session low, dropping the most in 2.5 months. it is still down 8% after topline results from one of their drug trials, saying patients with chronic heart failure that received a single one of the trippy -- treatments had a 60% reduction in heart attacks and strokes. they recently got fast track designation. clearly, the market is not liking that result. markets are set for a muted open. investors sizing up the latest fiscal spending package in washington, amid rising covid case numbers. key thingshe two kristina hooper is watching in 2021. she is from invesco.

great to have you with us. we'll look at potentially getting a stimulus package passed in congress, but also, you have rising numbers of hospitalizations, of cases, 300,000 deaths in the u.s., as well as potentially another lockdown in new york city. which is the dynamic that wins out, given valuations are as high as they are right now? vaccine: clearly, the is the most important thing. keep in mind that just a few months ago, we were hearing from experts who suggested we might not be able to arrive at an effective vaccine to combat covid-19. we are in a much different place. we have a light at the end of the tunnel and it is bright. having said that, we do have headwinds. we have this rising level of covid-19 infections that seem very difficult to control in countries like the u.s. and we have a lack of fiscal stimulus.

we have been starved for fiscal stimulus. we see another important policy support and that is central banks and the kind of accommodating monetary policy they provided. shery: is that a concern that with this role of liquidity that asset seeing support of prices, and there will be a come down with some level of fiscal tightening that will come before monetary policy tightening? kristina: with any strong run-up in asset prices, you see a consolidation period. but if we look to the global financial crisis as a guide, we saw what at the time was very accommodative monetary policy and we never saw any kind of dramatic giveback in stocks. ratesality is, that lower support higher valuations.

they have higher valuations. that does not mean we will not see pullbacks or corrections. on the other end of this crisis, similar to the crisis -- global crisis, we see an important solution waiting for us. it is coming in the near term. we are point in 2021, going to get it. shery: in terms of political clarity, we have a little more with joe biden clenching it today. we still have the georgia runoff. how much are you factoring that in, given how it could affect policymaking next year? kristina: it certainly can have a significant impact in a variety of ways. first and foremost, tax policy. if both senate seats go democratic, it will create stock market jitters on concerns we do see a hike in taxes. however, the positive would be more generous fiscal stimulus,

which has been lacking for some time. general, we will see significant differences in policy, depending on that january 5 senate race. shery: given uncertainty, how are you positioning yourself when it comes to different sectors? you think the energy sector will benefit from economic expansion next year, but we have seen the s&p 500 energy side of things see the best quarter in years. we are likely to see cyclicals perform better. if we look back in time, growth, defense of growth, secular growth, has outperformed cyclicals in general. period ofare due in a out performance. this is the trigger for it.

expectations for broad distribution of the vaccine. you can still see some secular growth perform well. givenlogy in particular, it has benefited from key trends during the pandemic, that has accelerated adoption of a lot of different forms of technology. hooper, always great having your thoughts. chief global strategist at invesco. more of the outlook for markets ahead. a on twitter live q& later. david ingles will be discussing ,he big themes to watch in 2021 and answering your questions. do join us for that. relatedn 300,000 covid deaths have been recorded across the u.s. as the country awaits the vaccine rollout. '-- aboutjohns hopkins the timeline. , a great step

forward. we will get more and more vaccines, see nursing home residents vaccinated. then the real challenges star because nursing homes, easy to find people there. is in community settings, it a much bigger challenge. >> based on what you're saying with supply chains on the rollout, when do you expect us to get to herd immunity, when we can start living somewhat normal lives again? dr. sharfstein: it is a great question and relies on vaccine access and on what everyone does. herd immunity is a concept with a virus cannot spread within a community because enough people are immune and there is no place for the virus to go. it will depend on getting the vaccine out there. we need to invest in the vaccination system and actually deliver vaccines to people who otherwise do not even get the

flu vaccine. ifo, it will be a lot faster we can get on top of the more socialterms of distancing and mask wearing and drive transmission down. a point of very little community transmission much quicker. the here to talk about and now, the idea of the pandemic worsening in many parts of the country. there is a question of how much the vaccine rollout will stave that off. do you expect that to limit some of the spread or are we back to square one with the same remedies we are were looking at earlier, of wearing masks and not hugging our friends? dr. sharfstein: we should keep wearing masks, we should not be hugging our friends. we should stay distant. we should not be meeting up indoors without masks, that is very risky. the vaccine is fantastic. it will eventually lead the way based one pandemic,

everything we know right now. least a fewt months. probably well into 2021. it may vary, depending on the country. shery: once someone gets a vaccine, how long does it take the body to build immunity? dr. sharfstein: the pfizer vaccine immunity looks like it kicks in at about two weeks. with the second shot is stays for quite a while. we will see. probably we see some impact a couple weeks after vaccine. >> what is the one thing you still want to know about the vaccine, and what would mean more people get vaccinated? i know i ask you almost every week, but are there more people now they don't want to be vaccinated compared to a month ago? dr. sharfstein: i think it is really important. when this pandemic started, it was very scary. we did not know much. then we learned how the virus is

transmitted and how to protect ourselves. it is a similar situation with the vaccine. we have a lot of information, but limited follow-up. get moreing to information about this vaccine, how quickly it works and real application in the world, about the full safety profile over time. things work, if out, we will get more confident and see more and more vaccination. that school of public health is supported by michael bloomberg, founder of bloomberg lp. coming up, chant -- china's antitrust watchdog faces alibaba and tencent, slapping fines on old acquisitions. this is bloomberg. ♪ this is bloomberg. ♪

haidi: china's antitrust watchdog has fined alibaba and tencent over acquisitions, signaling beijing's interest in tightening rules on internet acquisitions. is this another step in the broader crackdown on tech? >> if you put all the pieces of the puzzle together we have seen emerge over the last month and a half, that is the concern, that the news is tightening around some of china's tech companies earlyw shock back in november. you have also seen the government and regulators draw out antimonopoly rules. they are still in a draft stage, but they are there. and we heard from the politburo that targeting anticompetitive behavior in the tech space next year will be a priority for them. we also saw an editorial in the people's daily newspaper, one of

the top estate backed newspapers here, critiquing a delivery space., a giant in its now you have this retroactive action against alibaba and a unit of tencent. in terms of the fines, butgnificant, some $6500, both of these were regulators taking aim at deals done a number of years ago, retroactive. it is the signaling that is important. they are sharpening around these issues and are serious about tackling what they say a monopolistic practices amongst some of china's major tech companies and as a result, you did see share prices fall significantly yesterday. another area regulators pointed -- thisrday was a view would have created one of the biggest game streaming companies

in the world. it is being reviewed by regulators. haidi: we have a series of economic numbers coming out of china. what will we learn about the health of the economy? tom: expectations are the momentum in terms of recovery has continued. the november date is what we are looking at. 10:00 a.m. local time is wanted is out. you will get the jobless numbers, property investment and across all metrics, you are looking at an improvement. industrial production seen in october.6.9% retail sales absolutely crucial. we have seen auto sales pick up. from a 4.3% in october. investment, 2.6% from 1.8%. come throughd to in november data. you are looking at healthy demand domestically.

government support is feeding into that. exports out of china surging. high-frequency data pointing to a pickup in activity. data and november expected to underscore improvement in the economy. tom mackenzie in beijing. we will have more perspective on the economic recovery in china. we will have more guests in the coming hours. don't miss an exclusive interview. we speak to a ceo in one of his final interviews before stepping down after over a decade in charge. do stay with us for that one. here is a quick check of the latest business flash headlines. despite all the uncertainty this year, toyota has the top a truck. that tacoma is on a 10 day supply program in an industry

where 60 days is considered ideal. beforeckups are sold coming off the transporter. toyota has three american plants turning out to,s, and is asking for more. it is number one despite no upgrades for four years. an indian ride-hailer invested $320 million and a plan to make electric scooters. least 2ory will make at andion e-scooters a year, will import to europe and latin america. it is the largest motorcycle maker in the world and in 2019 sold more than one million bikes every month. india said to drawn expressions of interest from the qatar group. jlr owner has launched an

initial bid, while a group of more than 200 airline staff have looked at a majority stake. monday was a final day for bids. this is bloomberg. ♪ is is bloomberg. ♪

karina: this is "daybreak: asia." i'm karina mitchell. joe biden is officially the president-elect after the electoral college confirmed his victory on november 3. monday's vote from state electors put biden over the 270 needed to win, and he will be inaugurated as the 46th president in january 20. donald trump has said he will continue with legal challenges, claiming without any evidence that it was hit by fraud. in other news, the attorney general bill barr is stepping down two weeks after denying any significant evidence of electoral fraud, thereby irking president trump.

the president tweeted barr has done a "outstanding job" adding he will leave before christmas and be succeeded by his deputy. bar was criticized for bending to the president's political demand. in other news, a straley a says it is deeply concerned that reports of china has banned imports of coal as beijing unravel. to more than 50 ships carrying australian coal are waiting off the chinese coast after reports were ordered not to accept them. the global times newspaper now reports the band has been formalized. that would be discriminatory and illegal. gatekeepers by the european union face fines as much as 10% of annual revenue if they are seen to unfairly support their own services. rules made bands sound companies from using data, infringement may force the eu commission to order structural

changes including divestment of some operations. the reserve bank of india is warning against any changes to inflation policy, saying it could dilute the effectiveness of wider economic strategy. we are b.i. has cut rates by 150 year, but hashis been on pause for three meetings as inflations stays well but its range. the government has been weighing a looser inflation target to focus on rebooting the virus hit economy. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. shery: the u.s. has reached another unwelcome milestone. just ascovid-19 deaths hospitals start administering the first shots of the vaccine across the country. let's get more from our health care reporter, angelica lavito. how many doses are being rolled out this week? what does the timeline look like?

of course, today is the first day in the u.s. where people are getting their shots. week, theourse of the federal government will distribute about 2.9 million doses. that is enough to vaccinate almost 3 million people in the u.s. this first week. and then there is a possibility that later this week, we will have a second vaccine available to be used. that is moderna's vaccine. if that happens, we will start to process -- start this process all over again and have two vaccines rolling up next week. >> how does this process work? who are going to be the first to get vaccinated? and how quick will the rollout be? angelica: right. the first people to get the vaccine are health-care workers and residents of nursing homes which have been among the hardest hit by the virus in the u.s.

so those are the two groups that have been prioritized to receive these initial doses. federal officials have said that by the end of this month, 20 million people could receive their first of the two shots that you need for both pfizer and moderna's vaccine. there is a possibility that 20 million people could be vaccinated by the end of the year here. shery: in the meantime, we could see another locked down and shut down not only in new york, but of the parts of the country as well. angelica: right. today, governor andrew cuomo was warning that if things don't change in new york, there is a strong possibility that the state could shut down again. already on monday, the state closed indoor dining and there is a possibility that they could also close other nonessential businesses, much like what happened here in the spring. all right, angelica lavito there, are bloomberg health care reporter with the

latest. we will turn to the outbreak in japan now. the country has suspended the gain into encourage -- to discourage coronavirus infections after 3000 cases were reported on saturday. the go to travel plan has been put on hold for two weeks over the new year holidays. for more, we are joined by our reporter, isabel reynolds. public seen increasing dissatisfaction with this campaign given the rise in cases we have seen. is this what has prompted the change in direction from the government? isabel: yes, that does seem to be the case, as you noted. we have seen a record number of cases in japan. and relatively small compared to many countries in europe and the u.s. i think there was growing unease in the opinion poll shows that people are increasingly unhappy beenthe way it has balancing his efforts to support the economy and control the virus at the same time. he seems to have reacted to that

in a broadway by halting the program across the country, at a time of year when japanese people generally travel a lot to family gatherings in other parts of japan. this could send a strong signal to people that they should not necessarily be traveling at this time of year. shery: at the end of the day, is the reason they were trying to have this campaign, so what happens to the economy now? isabel: right. obviously, it is not going to be good for the economy. had was a policy that suga defended as the best way of supporting regional economies, keeping the millions of tourism jobs protected in the country. and going -- he has long been a proponent of increased tourism to japan. of 60 millionrget tourists to japan by 2030. he had that in the back of his mind. it will be negative, and some

economists are saying that the economy could go back into reverse again because of this move. so that could mean that he needs to tweak the way he is supporting the economy and shift to more things like handouts to people on low income, if you cannot use this program. having said that, the suspension is only until january 11, and he will make a decision after that, at that point, based on the infections on that date. as to whether to continue to do this or restart it. shery: isabel reynolds joining us from tokyo. the ceo of airbus says next year will probably be chaotic as the airline industry recovers from the virus pandemic. -- he spoke to amanda lange about his short-term expectations for plane production and his priorities for longer-term growth. >> i think it is going to be very complex.

from today, to a normalized situation probably at the end of 2021, 22 any to. the 2021 will be counted. but there is hope. we will probably see a much different situation by the end of next year then one we see at the end of 2020. itwe look at the long-term, is traveling by flight, for human beings. we are still in a business that will grow. obviously if we can managed the challenge of global warming and co2 emissions, that is why we have put on our died and a -- on our agenda to govern eyes flight as the top priority for the next decade. amanda: obviously you see your customers struggling for the past 10 months plus. and you will see firsthand what their projections are. we have heard three to five

years before normal volumes return. how do you plan for production in the face of those kinds of expectations? guillaume: well, we had to adapt very quickly, at the end of the first quarter, beginning of the second quarter of this year. the new environments. we had to guess and make assumptions, so we worked very closely with our customers. airline by airline, plane biplane, to be able to reschedule and organize it in a way that was manageable for us, and acceptable for our customers, in the face of a lot of uncertainties. this is what we have done at the beginning of the second quarter. we have adapted. and it has proven to be not too rightay from the projection. we see that in any 14, we anticipate we will remain at that rate at the beginning of

2021. quarter, we have far less planes than what we have produced. june, we the end of are reducing the inventory. how do we plan for the next one or two years? by working very closely with the customers. fromlso by understanding all of the touch points we are with many other organizations, and access to data, understanding, guessing what the recovery of the traffic will look like and the impact. this we will have on the planes. but obviously, it is a time of fast change and therefore, adaptation of humanity, of trying to understand what the future will look like. as well as making sure we can change when things are modified in the environment. it is for all governments, all companies, for all individuals, where we have to show

flexibility and speed of change. haidi: that was the airbus ceo, guillaume faury, speaking with amanda lange. coming up next, commodities continue their run hitting a six year high. we take a look at what it continues into 2021. this is bloomberg. ♪

emerging market etf's are

close to raising outflows yet chinese assets have brought or since the u.s. election. sophie has been tracking all of this. does this trend continue? we have seen the view on emerging markets turn more bullish going into next year. when it comes to china, a lot of optimism around the recovery on the mainland. let's get a closer look at the trends we have been seeing with this chart on the terminal which demonstrates how the e.m. etf without china exposure, that is the line in yellow. that is -- that has performed the china etf by more than double since last month's vote in the united states. what has been a boon's during this time is the rotation into cyclicals amid the vaccine optimism which has underperformed in 2020. overtime, we could see some pms pay -- playing catch to china's economic recovery, especially as

investors turned more selective on emerging markets going into next year. pulling up the board, the former head of china equities strategy cycle -- ed goldman and blackrock, she notes that should we get a synchronized worth scenario, she sees the window of opportunity happening for e.m. players in the next three to six months. shery: let's turn to the commodity markets, staging a rally in the past -- in the past few months. the commodity index rising to its highest since two any 14 on vaccine. the stimulus optimism that sophie was talking about. joining us now is economics president and chief economist, jason schenker. let me get started. what are the biggest themes that will shape the commodities market as we head into 2021? jason: i think the biggest theme is manufacturing has done very well this year. it took a little bit of a hit on covid. came roaring back. it is interest rate sensitive industry. that will remain true.

interest rates are going to remain low. essentially everywhere, probably for years, so supportive of manufacturing going into 2021. those are the big picture stories. shery: what about the weakening of the u.s. dollar? we are seeing asset managers building the record number of shorts when it comes to the dollar, as this gtv chart shows. jason: the dollar weakness is also something that is a little bit supportive, but not across-the-board. we have seen gold prices weaken. copper and aluminum have been on an absolute tear. oil prices have been a bit more muted. iron ore, which is not liquid lead traded in the same way aluminum or oil or gold are, that has skyrocketed. it is not all about the dollar. the dollar is a small piece of it. it is really about very low interest rates and manufacturing being very strong going into a recovery year. aidi: we have also seen

little bit of a check from china when it comes to the exuberance we have seen in iron ore as well as call futures. is there some concern that perhaps some regulatory pressure will take -- will take the exuberance out of the level we are seeing? jason: not necessarily. the november 2020 manufacturing pmi, the purchasing manager index that is privately compiled of small and medium-sized manufacturers in china, was at a 10 year high in november. that means the last time it was this high was november of 2010. is really strong manufacturing in china. i don't know how much they are going to pull back, because there is a chance for china to take a global market share for freddie mac should -- for manufacturing with low rates and a very strong momentum forward. you are saying even if we see regulators in china put a cap on prices, this rally continues to run to a large extent? jason: it could. especially for the more liquid lead traded metals.

and it is fundamental. we have recovery. we have growth manufacturing, the strongest year. good demand has been strong this year. interest rates will remain low next year. manufacturing data. pmi's, which lead manufacturing stuff, andple order they will manufacture stuff. all of that is still supportive of industrial metals in the year ahead. shery: what does that mean for oil, especially when you factor in opec-plus, not to mention shale? jason: oil is a different picture. industrials, and i think of industrial metals prices, typically are one of the industries that leads a recession and also leads it out. oil prices are different because we have all of the spare capacity, we have the ability of shale production come online, we have opec members that have been intentionally holding back production, they also have significant reserves. we know that 20 21 is likely to be a year in which the economy might lurch forward. it is not going to be an overnight situation.

even in the united states, there is no faucher crawls. it is going to come down and vaccinate everyone overnight. this is going to be months before we see everyone vaccinated and everyone traveling again and energy consumption goes up. prices, we expect oil prices will rise. but they could still remain relatively low compared to what has gone on with metals prices. shery: given what is happening in the oil market, we have seen shale producers take such a big hit. when did they become relevant again, at what level? $50 --we are at this right now with wti, we are barrel.$45 and $50 a next year, we think we are between $50 and $60 a barrel. at the upper end of the range for most of the year. isthink right now, shale becoming more interesting. that is why opec is struggling in terms of how much production they will hold back.

in the most recent meeting, they said they will reduce the amount holding back. they will gradually let out the line because if they don't let out the line and they don't increase their production, to shale producers will sweep in and flood the market. haidi: what is the biggest risk going into next year for commodities? if you are not so concerned about the direction of the dollar, what is it? is it going to be the broader macro picture? jason: in order for me to be concerned about downside risk, i would need a story that turns around everything in terms of vaccinations or interest rates. you don't even have to tell me that the interest rate everywhere will go up fast, which is not likely. you would have to tell me that manufacturing is suddenly going to be over, which i don't expect. you would have to tell me a bunch of things for me to believe a bearish story for industrial commodities. and i just don't see that. i see if anything, and upside. and of course, as we know, once we see those markets begin to go

up, the technical traders pile in and you can see a lot of upside, especially for those industrial metals that have resurged. shery: upside -- haidi: upside for precious metals as well? jason: we think it will go up in the year ahead because we do see the dollar likely -- likely weakening. less so for gold and silver. more so for the platinum group metals. platinum prices could see upsides. a lot of that to automotive demand. that is a different picture than silver and gold. anywhere where there is manufacturing demand, we see that much bigger upside. president, very bullish jason schenker there. great to have a. let's take a look. we were talking about the rally we see in iron ore. prices on a runaway. take a look at where ozzie iron ore is trending. we are seeing downside across the board. the biggest decline, down by 3.7%.

we have seen retaliatory iron ore levy concerns coming out of china. we have also seen china moving to check the surge we have seen in iron ore and coal prices domestically, getting some people to be concerned about potentially a tap on prices, as we see these exuberant levels. we heard from the australian resources minister as well responding to the idea that we could see a levy on iron ore experts going to china along with the downside and the pressure we have seen in other commodities and australian exports. that does not look like it is on the table. we are seeing a bit of a pullback in these iron ore players. plenty more to come on daybreak asia. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. we work in softbank have failed to eliminate a lawsuit filed by we work employees from a purchase. a judge agreed to trim some claims from two independent erectors but refused to toss the case. the cofounder was one of those who filed the case. claiming a breach of contract. he stepped down as ceo last year. google is dealing with a global outage which prevents users from accessing gmail, youtube, and other issues.

however, services began to return about two hours later. google insists the problem was not caused by a cyber attack but from a technical flaw that allowed users to login. they are looking at the future of its underperforming unit as part of a new five-year business plan to be laid out in march. it was bought for $4 billion in 2006 two years ago. the ceo has made reebok's long-standing sluggish priority, closing some stores and allowing some licensing deals to expire. a firm backedd in by the largest oil refinery in china. we are told the sovereign fund has put 200 million u.s. dollars into green energy which may be considering an ipo in china or hong kong in the coming months. we are told the firm is valued at $1 billion. it is also in a joint venture with icelandic company arctic

green energy. shery: japan and south korea come online at the top of the hour. let's turn to sophie for what to watch. sophie: when it comes to stocks to watch, we are keeping an eye on rail and travel names, the likes of central japan, and hih co-. they move after the administration suspended travel incentives under the domestic go to campaign for two weeks. which would cover the busiest period in the year. keeping an eye on toyota shares. this on a move to buy back $4.6 billion worth of stock. which bloomberg intelligence says the carmakers finances are in good shape. flipping the page, we are keeping an eye on lg on the financial times report that white box advisors has launched a campaign to stop a planned spinoff by lg corporation. that is a look on what we are keeping a ion on the open in

seoul and tokyo. let's take a quick look at what is going on when it comes to trading. we are seeing stocks moved to the downside in sydney as well as in wellington. when it comes to stocks in australia, they are weighing heavily on the asx 200. the mineral resources, the biggest laggard so far. this after we saw iron ore futures retreat from a 2013 on potentialllowing indicators that we may see intervention risk from authorities on the rally we have seen in iron ore prices. we are seeing nikkei futures move to the downside as well. we are seeing potentially some moves lower for the kospi. there has been a lot of bullish forecasts for earnings in seoul, given what we are seeing for korean stocks this year. haidi: all right. we have lots more coming up, including the data dump when it comes to china. we will be previewing some of

those numbers when it comes to industrial production retail sales and fixed asset investment with a betty wong. she will be with us later. we will also speak to steve price for his investment strategy. this is bloomberg. ♪

shery: welcome to "daybreak: asia." from bloomberg's world headquarters in new york, i'm shery ahn. haidi: i'm haidi stroud-watts in sydney. asian major markets have opened for trade. our top stories this hour, asian markets facing pressure as investors weigh a relief deal in washington against rising infections and the chance of new restrictions. the stimulus bill is $908 billion plan that is racing against time to pass congress in

this season. a competing treasury program is also on the table. joe biden is officially president-elect after the electoral prop college confirmed victory. he addresses the nation in this hour. we will take the speech live. let's get straight to the market action with sophie kamaruddin in hong kong. sophie: we are seeing japanese stocks moved to the downside with the nikkei under pressure. the yen is holding around the 100 four level. jgb expected to trade within range as we await debt issuance. details related to the third extra budget, which is expected to be approved by cabinet this tuesday. let's switch out the board to check in on moves in sydney. we are seeing the asx 200 head lower with iron ore minors weighing heavily. off more than 2%. jp morgan seeing an upside for the stock with a price target at 50 australian dollars. u.s. futures inching higher at .2%. the as capped a four-day decline as lockdown concerns are weighed against vaccine optimism.

i thought the oil was little changed testing the $47 a barrel market. and south korea, set to release its november meeting minutes and monthly money supply data. the kospi opening higher by .1%. going into 2021, the bullish forecast has been ruling in an optimistic earnings. outlook city seeing 43% profit growth for korean stocks next year. over and bearings, fund managers to high limbs saying interesting ideas in korean tech with the sector. jp morgan constructive on korean tech, predicting the kospi will hit 3200 by 2021. shery: we are seeing an optimistic views from our next guest for 2021, saying the reason vaccine development should benefit equities, credit, and multi-asset income strategies. bryce,ring in steve great to have you with us. this is despite the valuations

but looked elevated right now. certainly., they do that is probably the biggest concern. the theme we have for 2021 is vaccinating against those valuations. if you look at valuations across the board, whether you look at markets,ets or equity we see relatively high valuations. we don't see that changing much. we see fundamentals catching up in 2021. obviously, the second half of this year has been very much focused on looking through the pandemic. vaccines should help us to continue to do that, especially as we see fiscal stimulus. we believe it is going to be another good year for investors. bond yields likely cap. as he mentioned, infrastructures are still very favorable for investors as well. shery: is this the right time to jump in? we have already seen a huge rally. especially in the value sector. cyclicals have also been bid up. think if we were

having this conversation three months ago, we would have the same conversation. very strong rally, in the market has continued to go higher. i think it is difficult to know exactly when to jump in. markets do look a little bit stretched. we do have some short-term uncertainties. if you are looking at the actual vaccine develop men's itself, yes, it is good news. but it is going to take a long time. probably until the second half of next year before we start seeing huge amounts of people being vaccinated against the virus. that is assuming things go well. we may see some short-term volatility, of course, at points along the road. the u.s. fiscal development will be key in the short-term. ultimately, we don't think any call will be that significant. i think investors should not be too patient if we do see those, the short-term weakness coming through. haidi: with the reset that a new year brings, are there any

contrarian plays left? we have not spoken to anyone who is not bullish equities, bearish the dollar, bearish u.s. treasuries. that is probably the risk in terms of the short-term assets. you can see some pullback. contrarian --al there are two areas to look at. one is gold. have been bullish gold over the past 12 months and that has worked pretty well. but we have taken that view now and since then, we don't want to be overweight gold. we still have a slight upside bias toward gold price, but we don't think it is going to have the form of asset classes. that is partially on the fact that we saw gold weaken as the dollar was weakening. that was a major drive for us. i breakdown in correlation is a little concerning. biggestour non-consensus view out there. the other one to watch out for is obviously the value versus growth debate. we have seen massive underperformance of value over the course of the past 10 years,

and over the past 12 months. a consensus view that we will see value outperform in the coming 12 months, which we would agree with. we think it might be frontloaded, as we see a sharp recovery and the economy in the first half of next year. we could see a strong outperformance of value in the short-term. without necessarily changing the long-term trends. for that to happen, we need to see bond yields going higher. at this stage, we are not convinced that is going to happen. haidi: i want to throw up a chart looking at the emerging market performances with or without china. i think that is an interesting question, given that in comparison, you have seen chinese assets underperform the broader em complex. . this is looking at the em equity etf outperforming in a basket that does not have china exposure. does that trend continue do you think? at the same time, we do have ms i china at the highest

valuations since the inception of the index itself. where does this go and does china still remain the em anchor sentiment wise? happens,suppose what if you were to draw that chart along the period of time, china woodstock a better. that is because china was the first in, first out from a covid situation. peaking in thes first quarter and the china recovery coming through. fundamentals still argue that china is going to do well. we are looking for around 8% growth in 2021. i suppose the question is to what extent is that priced? we do believe that china is going to do very well and continue to outperform over the longer-term. that growth profile, as was mentioned, there is a slight concern about policy being certainly not going to be more stimulus coming through, but we are watching for that in march to see whether that delivers. we continue to be bullish on china equities.

haidi: what about for the bond market going into next year? are we expecting to see the flood of issuance take some of the exuberance out of that? so, if we are looking from a global perspective, we see bond yields being cap. if you come to asia, we feel that asian credits is a very good area to be invested. obviously we have seen pickup in defaults in china and obviously we have seen the next federation of issuance around the region as well. but overall, we believe spreads now are very wide, relative to the u.s. counterparts. and we believe the back drop in this environment is actually more favorable. from that perspective, yes, we are seeing a pickup in defaults. that is something we need to on. an eye overall, the pricing looks attractive.

we are overweight asian credit and our 2021 outlook. haidi: a pleasure to have you on with us. . we get more on the outlook ahead. we have the live q&a on facebook and twitter later on with none other than ir echo anchor, david ingles -- none other than our coanchor, david ingles. he will be taking questions, so throw your hardest questions at him please. let's get to karina mitchell in new york with the first word headlines. karina: another grim milestone . two another story. joe biden's president-elect after the electoral college confirmed his victory on november 3. monday's vote from state electors put biden over the 270 needed to win. he will be inaugurated as the 46th president on january 20. donald trump has said he will continue with legal challenges to the election results, claiming without evidence that the poll was hit by widespread fraud. story. that deaths tribute -- deaths attributed to the coronavirus have topped 300,000 as the first

vaccines are rolled out. rising nationwide infections are likely to trigger a second lockdown in new york city, with all nonessential businesses ordered closed. president trump was expected to have an early vaccine shot but says he is delaying jobs for himself and white house staff. anger is growing in europe over tightening virus restrictions with business owners complaining the measures are in a dry -- are driving them two at sea. london is expected to enter the surge.set -- toughest more than 9 million people will be affected. japan is abandoning a campaign to encourage domestic travel over christmas and the new year. in other news, sources in brussels say the eu sees a chance of a brexit trade deal this week, despite significant differences still remaining. diplomats close to michel barnier say that the u.k. has made concessions, and is discussing fishing rights. barnier has told envoys from the 27 remaining the eu states that

a compromise on the issue could unlock a post-brexit agreement. no permissioneeds to boost oil production saying a doubling of output is "practical." they say the cartel has the necessary mechanisms in place to handle such a move amid optimism that a new u.s. administration might ease sanctions on tehran. iran is urging joe biden to return to the 2015 nuclear deal saying it will also comply. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. shery: still ahead, joe biden is said to call for unity as the electoral college cements his victory as president. we will have his address live later. thefirst, we will preview economic dataview out of china in a couple of hours with senior economist betty wang. she joins us next. 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.

haidi: we are watching one of the decliners in the japanese session in tokyo. we hear theeir as announcement from the japanese prime minister and the government suspending the signature domestic travel incentive system nationwide for two weeks which takes it over the new year holidays. a traditional period of high travel and consumer spending. we are seeing a down by 6.5%. this as we see the program being suspended after heightened cases of covid-19, including more than 3000 cases registered over the weekend on that one day. ana recently looking to raise almost $3 billion as a buffer against the impact of the pandemic. let's get to china.

china's economic activity last month to show buoyancy in supply and demand. industrial production and retail sales numbers are due out in a couple of hours time. joining us for a preview is china economist betty wang. great happy with this. i want to start off by painting a picture of the chinese recovery and the domestic activity with this chart, looking at a sharp rebound from the lows at the start of this pandemic and the lockdown period. we have seen a uniform recovery in this chart. retail sales, industrial production and fixed asset investments, all picking up in firm growth territories. i'm wondering at this point when it comes to the strength of the chinese recovery, what could potentially be the risk that derails it? think there are a couple of risks. for example, in the near term, especially for today's data, i will be interested to see whether ip has been affected by the shortage in other sectors. as we all know, the chip sector

has been an issue in the past few months. affected automakers production in the past few months. any impact on the production and this month and also the coming months will be a focus for me to look at for today's data. but of course in the future, there are a couple of risks for china. for example, geopolitical risk. although -- that theot guaranteed china-u.s. relationship will return to the good old days. so the risk will hang around. from the much longer perspective, whether china will be able to improve its

productivity, that will be a key focus. as we all know, china is having a straining work age population. this used to be a blast for china's economic growth. whether china will be able to improve it, labor productivities to offset the shrinking working age population will be another challenge for china in the future. shery: the productivity -- haidi: the productivity is there for chinese policymakers. just because we see this recovery, doesn't mean the issues of debt, of middle income that you allude to is not still there. what does it mean for the pboc if indeed there recovery is firing on also lenders? do you expect tightening measures to come? betty: from the monetary policy perspective, we don't expect any major policy rate change for next year. but rather, like potential

measures could be used by the pboc to contend financial risks in the system, and to manage liquidity. the the longer perspective, pboc will likely be focusing on the interest rate reforms, to make sure that market rates and lending rates will be converged in the future. shery: those financial risks he mentioned, this chart on the bloomberg showing the huge amount of corporate debt that china has right now. we have already seen this year about 100 billion yuan in credited defaults. will we see more of them, given policymakers are trying to contain leverage? yes, it could be. if you look at the chinese bonds repayment schedules, next march to april, it could be another pick for bonds. from the perspective, there is a hard jiffy -- a large view to

contend the leverage ratio. the so-called revolutionary change. leveraging by local developers, and also the defaults recently. so there is a possibility we will see more chinese bonds to come next march to april. but the bottom line is automakers will not allow a spillover effect into other parts of the financial system. if you look at the past experience or the policymakers, they have a good track record to contain or control the backlog of the risks. large-scaleexpect a or surge of crisis to happen in china. shery: real quickly, what happens to the health of the chinese economy, given we have a

surge in yuan because of this premium over yields as well? betty: so far, if you look at economic data, there seems to be very little evidence to show it has been hurt by the strong you on. month, a pmit service adjusted 80% of the survey respondents saying the impact of the yuan. , if that is the case i think automakers will be allowing the yuan to further appreciate, especially if you look at a lot of factors that have been severing it recently. the strong economic recovery, improving trade balance, and also the china-u.s. interest rate cap. shery: great having you on. senior china seat -- china economist. we will have more on that. our guest will be joining in we will break down the data after they break with citigroup. don't miss an exclusive

interview later. we are speaking to charles lee in one of his final interviews before stepping down, after over a decade in charge. coming up next, douglas flynn says london will stay competitive even under a note to brexit. the rest of the u.k. might not. this is bloomberg. ♪ are you frustrated with your weight and health? it's time for aerotrainer, a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. do the aerotrainer super crunch. the pre-stretch works your abs even harder, engaging the entire core. then it's the back extension, super rock, and lower back traction stretch to take the pressure off your spine and stretch muscles. planks are the ultimate total body exercise. build your upper body with pushups. work your lower body with the aerosquat.

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shery: significant differences remain between the u.k. and european union as time runs out to reach a trade agreement. douglas flynn says the city of london is ready for a new deal brexit scenario. but the rest of the country might not be. >> london and the financial services, the rest of the country has a lot of adjustment to make. i think the chances of a deal better with every hour that passes in the sense that we come up against multiple deadlines which have been final deadlines.

in yet when they have got to them, both sides have agreed it is worth continuing. because both sides can see that a no deal end to brexit would be very disadvantageous to both. and we do seem to be in agreement on almost everything, apart from two areas. hopefully over the next whatever so, the twoys or sides can reach an accommodation that means we will not have the disruption or we will not have the excess disruption we will have with a new deal on the first of january. >> as we have seen already, brexit headey -- has yet to cause a major hit to financial services. but the jury is still out on the actual impact. a key question right now is whether or not the eu can develop as a financial sector. what is your take on that? how do you see the eu's capital markets coming together? douglas: i think that has been an aspiration for some time, and it has been difficult to

achieve. there is not a common insolvency framework. there is not a common tax framework. it is very difficult for a single financial market when you have divergences in those three areas. i think as far as london is concerned, we compete with financial senses all over the world, and we welcome -- we will continue to compete on providing service that is better than anywhere else. in many ways, it is an impetus to try harder and make ourselves more relevant. i think people are prepared for the worst outcome. we will be competitive going forward. is chairman douglas flynn to speaking with haslinda amin. let's get you a check of the latest business flash headlines. despite the uncertainty this year, one thing remains true. the tacoma is currently on a 10 day supply program in an industry where 60 days is considered ideal.

it was already sold before coming off of the transporter. it is calling for more. to, remains number one despite no upgrade for four years. softbank act india braked i greater -- $23 million to make electric scooters. the factory will be able to make at least 2 million east scooters a year. it aims to export the two wheelers across europe and latin america. india is the largest maker in the world and in 2019, it sold more than one million bikes every month. struggling air india has said to draw interest from the tata group at a consortium of its own staff. lodged an initial bid while a group of more than 200 airline staff has also stake.at a majority sunday was the final day for bids. the government says it has received several expressions of interest. but it declined to show any of them. are seeing the

japanese nikkei lower by health care and consumers staples stocks. down .3%. reversing yesterday's gains. the japanese yen, a little strong now. the strongest and more than a week against the u.s. dollar. we do have the boj decision coming up later in the week. the kospi also falling for a second consecutive session. this after reaching record highs in the last few weeks. the korean won also consolidating in a narrow range. they asx 200 being led lower by energy and materials, despite the fact that oil did inch up in the new york session. now unchanged with wti. steady.cks holdin joe biden is to call for unity when he speaks in the next few minutes after the electoral college officially confirms his presidential win. we will bring you his comments live from wilmington. this is bloomberg. ♪

saying a start to trading in asia. let's get a closer look with sophie kamaruddin in hong kong. speaking, adly downward move for asian stocks as markets assess vaccine moves. stocks are losing 0.5 percent with aussie dollar edging higher. meetings the rba's minutes, seeing reasonable upside. a quick look at broad moves. shery? we have president-elect

joe biden speaking right now in wilmington, delaware, after the electoral college officially confirmed his victory. take a lesson -- listen. again,lect biden: once the american america, the rule of law, our constitution, and the people prevail. pushed, proved to be resilience, through and strong. the electoral college votes which occurred today reflect the fact that even in the face of a public health crisis unlike anything we have experienced in our lifetimes, the people voted in record numbers. more americans voted this year than ever in the history of the united states of america. americans weren determined to have their voices heard and their votes counted. at the start of this pandemic, this crisis, many were wondering, how many americans would vote at all, but those

scares turned out to be unfounded. we saw something very few predicted, even thought possible, the biggest voter turnout in the history of the united states of america. a number so big that this election ranks as the clearest demonstration of the true will of the american people, one of the most amazing demonstrations of civic duty we have ever seen in our country. it should be celebrated, not attacked. more than 81 million of those votes were cast for me and vice president-elect harris. more thans a record, any ticket has received in the united states of america, winning margin by more than 7 million votes over those cast for my opponent. together, vice president-elect harris and i earned 306 electoral votes, well exceeding

those needed to secure victory. 306 is the same number of electoral votes that donald trump and vice president received when they won in 2016. excuse me. at the time, president trump calls the electoral college tally a landslide. by his own numbers -- his own standard, these numbers represent a landslide. if anyone did not know before, they know now what beats deep in the hearts of the american people is this, democracy, the right to be heard, to have your vote counted, to choose leaders of this nation to govern ourselves and america. politicians don't take power, people grant power to them. the flame of democracy was lit in this nation a long time ago. not even a nothing,

pandemic or abuse of power, can extinguish that flame. aflame, sole kept it too did local state officials and workers. american democracy works because america makes it work at a local level. one of the extraordinary things we saw this year is, every day americans, our friends and neighbors, volunteers, republicans, democrats, independents, demonstrating courage. they showed a deep and unwavering faith in and commitment to the law. they did their duty in the face of a pandemic and than they could not and would not give credence to what they knew was not true. they knew this election was overseen by them, was honest, free and fair. eyessaw with their own

that they would not be bullied into saying anything different. it was truly remarkable because so many of these patriotic americans are subject to so much. enormous political pressure, verbal abuse, and even threats of physical violence, but we all wish our fellow americans in these positions would always show such courage and commitment to free and fair elections. it is my sincere hope we never again see anyone subjected to the threats and abuse we saw during this election. it is simply unconscionable. a owe these public servants debt of gratitude. they did not seek the spotlight. our democracy survived because of them, which is proof once more that it is every day americans infused with honor, character and decency that is the heart of this nation. in this election, their integrity was matched by the

strength, independence, and integrity of our judicial system. in america, when questions are raised about the legitimacy of the election, those questions resolve through legal processes. that is precisely what happened here. the trump campaign brought dozens and dozens and dozens of legal challenges to test of the result. they were heard again and again. each of the times they were heard they were found to be without merit. time and again president trump's lawyers presented arguments to state officials, state legislatures, state and federal courts, and all the way to the u.s. supreme court twice. they were heard by more than 80 judges across this country, and in every case, no cause of evidence was found to be reversed or questioned or disputed. a few states went for recounts. all the counts were confirmed.

results in georgia were counted three times. did not change the outcome. the recounts conducted in wisconsin saw our margin grow. in michigan was 14 times the margin president four won that state by years ago. our margin in pennsylvania was nearly twice the size of the trump margin four years ago, yet not -- none of it has stopped baseless claims about the results. 17 --ore stunning, republican attorneys general and members of congress actually signed on to a lawsuit filed by the state of texas. that lawsuit asked the u.s. supreme court to reject the certified vote counts in georgia, michigan, pennsylvania and wisconsin. this legal maneuver was an effort by elected officials.

and one group to get the supreme court to wipe out the votes of more than 20 million americans in other states, and to hand the presidency to a candidate who lost the electoral college, lost the popular vote and lost each and every one of the states whose votes they were trying to reverse. it is a position so extreme we have never seen it before. that refused to respect the will of the people, the rule of law, and refused to honor our constitution. thankfully, a unanimous supreme court immediately and completely rejected this effort. the court sent a clear signal for president trump that they would be no part of an unprecedented assault on our democracy. every single avenue was made available to president trump to contest the results. he took full advantage of each and one of those avenues.

president trump was denied no course of action he wanted to take. he took his case to republican governments and republican secretary of state, to republican state legislatures, to republican appointed judges at every level. it was a case decided after the supreme court's rejection a judge appointed by president trump wrote, "this court has allowed the plaintiff the chance to make his case, and he has lost on the merits." end of quote, lost on the merits. even his own cyber security chief overseeing our election said it was the most secure election in american history. summarily, let go. let me say it again. his own cyber security chief overseeing the selection said it was the most secure in american history. respecting the will of the

people is at the heart of our democracy. even if we find those results hard to accept, but that is the obligation of those who have taken on a sworn duty to uphold the constitution. four years ago when i was a sitting vice president of the u.s. it was my responsibility to announce the tally of the electoral college votes in a session to elect donald trump. i did my job. i am pleased, but not surprised, by the number of republican colleagues in the senate, who acknowledge the results of the electoral college. and i'm convinced we can work for the good of the nation on many subjects. to the the duty owed people, our constitution, our history. ofthis battle for the soul america, democracy prevailed. we the people voted, faith and

our institutions held. the integrity of our elections remains intact. now it is time to turn the page, as we have done throughout our history, to unite, to heal. i i said in this campaign, will be president for all americans. i will work just as hard for those of you who did not vote for me as i will for those who did. there is urgent work in front of us, getting this pandemic under control and getting the vaccine. delivering economic help so badly needed by so many americans who are hurting today, then building our economy back better than it ever was. in doing so, we need to work together to give each other a chance, to lower the temperature . most of all, we need to stand in solidarity as fellow americans, to see each other, our pain, our

struggles, our hopes and dreams. we are a great nation, a good people. we may come from different laces, hold different beliefs, but we share in common a love for this country, a belief in its limitless possibilities, where we, the united states of america, have always set the example for the world for a peaceful transition of power. we will do so again. i know the task before us will not be easy. it is tempered by the pain so many of us are feeling. today, our nation passed a grim 300,000 deaths due to this covid virus. youeart goes out to each of in this dark winter of the pandemic, about to spend the holidays and the new year in the black hole in your hearts without the ones you love at your side. my heart goes out to all of you

who have fallen on hard times through no fault of your own, unable to sleep at night, staring at the ceiling, weighed down by the worry of what tomorrow will bring for you, and equally important, for your family, but we have faced difficult times before in our history. i know we will get through this one together. that is how we get through it, together. as we start the hard work to be done, may this moment give us the strength to rebuild this rock thaturs upon a can never be washed away. as in the prayer of st. francis, where there is discord, union. where there is doubt, faith. where there is darkness, light. it is who we are as a nation. this is the america we love. that is the america we are going to be. youk you all, may god bless and may god protect our troops

and all those who stand watch over our democracy. thank you. >> [indiscernible] you have been listening to president-elect joe biden speaking to the public as he clinched the electoral college victory. of course, he officially secured the presidency after the electoral college members voted for president-elect biden, as they were expected to do. he talked about unity, the fact he was convinced he can work with senate republicans, but at the taint -- but at the same time said the supreme court send president trump a clear message on democracy. he respectfully suggests trump recognizes the vote results. let's discuss this with david westin. david, it was interesting to see that he talked about unity, but at the same time, he did not hold back when it came to saying

president trump needs to recognize what happened. david: i think you have it exactly right. there were two speeches are the first half was, i did win, let me prove to the various ways i won. more than 81 million americans voted for kamala nad i. we had -- and i. of the supreme court quickly and unanimously rejected claims. he made the case, i did win. this is not close, it is not bush versus gore with a few hundred votes in florida, this was overwhelming. that was the first, i won. the second, we have a lot of challenges. he pointed out 300,000 americans have died, all the work we have to do, the economic dislocation. we need to join together as one to address that.

first, let me prove to you i related win, and, let's go on. that: it is important though he had to do that part, it is to move beyond that, instead of being dragged into the past and unsubstantiated claims, this too and fro with president trump, to be able to move on. what is a really challenging agenda policy measures as soon as he hits the ground running. david: even before he hits the ground running. we are having this ongoing contention in the congress about a further fiscal stimulus bill with a possible compromise coming out of a bipartisan group today. even before he gets there he has problems moving forward. what shape will it be in when he gets there? pandemic,lan for the including i believe he will ask all of us to wear our mask his first 100 days. he has a tall order.

he has to get some republicans to come along with him. he needs some bipartisan support to make a difference. shery: congressional republicans so far had resisted calling him president-elect biden. is that starting to change? more to that point, what happens to president trump now? i have heard everything from the president running again in four years. david: the only thing i know for sure -- i do not know much for away.is, he is not going donald trump will not disappear from the american scene. you are seeing some republicans, senators -- mitt romney has never been a fan, but a prominent senator from texas saying, it is over, let's go forward. it will be interesting tomorrow after the electoral college has voted, because some people said, let's wait until the vote. it will be interesting to see tomorrow and the next day,

enough is enough, let's move forward. shery: a lot has been said over years, overr contention over election results, the divisiveness of the trump administration and the campaign and election. a lot of other people pointed out, this is america. it is ultimately the exceptionalism is in the division and to come together as the united states. is that something the president-elect will be able to address in four years. but -- potentially another run from donald trump? david: that is probably the most important question. number one, i do not know. number two, those who have worked closely with joe biden said, if anyone can do it, he may be the right person. he is a different sort of person p he spent so much time in the senate working on both sides of the aisle, including with mitch mcconnell.

people who know him well and i watched him work, in the senate and as vice president say, if anyone is capable, it may well be joe biden. haidi: president trump still got millions of americans to vote for him. more americans voted for him this time around than they did in 2016. what does the future of america hold where in the past four years we have seen such huge assaults to the democratic institutions that make the american political system? i think that donald trump in this election got more people to vote for him then on the other candidate other than joe biden. he is the number two ranking. the point is a terribly important point. it is going to be up to donald trump and other members of the republican party. thus far it looks like a leadership has been afraid to go against donald trump because they do not want to have that

base turn on them. it'll be interesting when people step forward to see some of that base, they will have to appeal to what they care about, but at the same time, move toward the center or figure out a way to work with people on the others of the aisle. westin taking a look at that speech from the president-elect joe biden. china is signaling its intentions to bump up oversight, a fine for anti-monopoly laws. more on this broader crackdown on tech. this is bloomberg. ♪ is bloomberg. ♪

haidi: beijing is sending a strong signal it plans to tighten oversight of m&a deals. they have fined alibaba and a unit of tencent over past acquisitions. there was an impending tencent-led merger. what is the immediate impact we see in this? steve: we are getting the initial stages of fallout from the draft rules we first heard about a couple months ago from beijing on the anti-monopoly laws. thebig giants, behemoths of internet world and chinese economy, alibaba and tencent, will have to pay fines.

$76,000 u.s. dollars, that is not a big thing. but it is sending a strong signal beijing will not tolerate what they perceived to be anticompetitive behavior. look what happened in the chinese internet space. there was a land grab and the two biggest survivors, alibaba and tencent, have been gobbling up a number of companies on an acquisition spree. sometimes these two companies were co-investing in big names that have gone public. there was a land grab before the regulations caught up with them. in essence, in simple terms, it is easier to ask for forgiveness than permission. what is happening now, after all these acquisitions, they are starting to ask for forgiveness. they will pay some fines, but

going forward, how will this affect dealmaking in the internet space, which needs those deals for evaluation? says,erg intelligence retroactive application of new anticompetitive rules first announced in november may be a stern warning to total line of the future. that is why there is so much uncertainty going from these fines, the size is small. shery: is that the ultimate aim of regulators, to tow the line? what does it mean for these tech giants? onve: it does cast a pall dealmaking in the internet space. is underin particular review and that was two companies that were going to merge, the live streaming gaming business, much like amazon's twitch. also celebrities do live.

that is now under review. was going to create an $11 million valued company and dominate. behind the scenes, tencent would have had 68% of the joint company. they would have really dominated. this is an anti-monopoly law affecting deals like this. in the internet space, you have an made it unless you have alibaba or tencent backing. all of them have an alibaba or tencent backing. that is what the government is trying to weed out. they are weeding out collusion with the sharing of sensitive information across these platforms. they collected all these different companies in different spaces and brought them into one centralized platform. they have that shared data. they are also trying to break down alliances that squeeze out smaller rivals and subsidizing of services. stephen engel, we are

about 20 minutes from the open in china. here is sophie with what to watch. sophie: in hong kong we are watching product after citi downgraded the stock to neutral, reducing their 2021 sales estimates by 2%. given the rally we have seen in the stock so far, which has priced in some of the potential for product, but the price target has been raised. this on the potential for product to take further shares of the stock luck -- luxury market. cathay pacific, the changing of 25.guard for cfo as january rebecca sharp will take the place that day. we are keeping an eye on eve energy after a news report its espyis being eyed by innovation.

they operate an ev battery plan. haidi: china voices ahead of the open. microstrategy. we are also joined by jeffries. this is bloomberg. ♪ this is bloomberg. ♪

>> 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 chinese mainland and hong kong. across the region, trending sideways, under pressure, whatever you want to call it, investors