>> welcome to "daybreak asia." i am shery ahn. >> we are counting down to asia's major market open. asia will look to extend wall street's rise as congress moves towards a new virus relief package.

taking stock. we hear exclusively from charlie as he prepares to depart after a decade in charge of the hong kong stock exchange. shery: we are getting the november adjusted jobless rate in south korea coming in at four point 1%, which is better than expected, and it's also a fall from the previous month. we are seeing job losses across removedd, 273,000 jobs in november from a year earlier. we have south korea suffering from that third virus waves. for now, it looks like the 4.1%ss rate is down to from 4.2%, and also beating expectations. get right to- sophie for a check on the markets. sophie: aussie stocks opening higher by one third of 1% with

after pay leading the charge, bhp also gaining ground. it test aession saw june 2018 high, while the greenback is near a two-year low. kiwi shares gaining. little change for the kiwi-dollar, few clues on how to react to the upcoming policy decision this wednesday. the s&p 500 snapped a five day drop. let's take a look at how futures are trading. wti, opening lower this morning after jumping to a 10-month high. folks glickman warns that are forgetting that there are a couple of triggers that have to happen before oil demand can come back. keeping an eye on the pound, cable holding above 1.34, and

nikkei futures, little change in chicago. as 10-year fell to zero traders assess japan's debt plan. haidi: the u.s. congress may be facing a make or break moment on a coronavirus relief package. kathleen has the latest on of these evening talks that will culminate in what is going to be a crucial meeting for congressional leaders. we are getting incrementally closer that there is a will on both sides of the aisle for this stalemate to be broken. kathleen: it certainly seems that way. one of the biggest things that has changed over the past few months is that the presidential election is over. joe biden has won the white house, the president-elect, and so democrats move into a different position to perhaps even pass a very pared down stainless package that they

resisted for months before biden made that victory his own. of course, republicans have been saying that they want certain things that they are willing to drop, but let's back up a little bit. the meeting started at 4:00 and ended just before 5:00. it included the leadership of the four major leaders. speaker,osi, the house and you've got steve mnuchin, the treasury secretary, who she invited to join her, along with chuck schumer, the minority leader in the senate, mitch mcconnell, the majority leader, and kevin mccarthy, the house minority leader. is startingve done to go over the package that the bipartisan group the gang of eight put together. what is important about this? it is a slimmed down version of the original package, even their own original package. instead of being $908 billion, it is $748 billion.

they dropped two things that are very contentious. and states,o cities something democrats pushed hard for, and republicans pushed back. then you look at the liability protections for employers because of virus issues. we are just waiting to see what they can hammer out. it looks like they are making progress. they've got to have something in place by friday because they have to pass something to keep government spending, the budget closing down, so the pressure is on. "the washington post" reporting that nancy pelosi is saying -- sorry, that's mitch mcconnell. mcconnell has been talking about a different issue, and we know his silence has meant a lot. he said joe biden won the presidential election. kathleen: joe biden is being

recognized having won after the electoral college tallied its votes and said, yes, he has won. he is the president. mitch mcconnell and other republican leaders have held back from making this endorsement while there were a number of lawsuits put forward team, saying some votes have been lost, some votes were thrown away. butwant to call it fraud, there are so many incidental moments of this. mcconnell is recognizing joe biden, and not surprising that joe called mitch mcconnell to thank him for the congratulations, expressing optimism that after having been in the senate for so long by himself, biden can reach across the aisle, and people he's worked within in the past like mitch mcconnell will be willing to reach back. it all remains to be seen. global economics and policy editor kathleen hays. joining us for more on those --ket moves is

we see this think mental progress towards pushing through a stimulus deal, and it seems like this is a market wanting to focus on the good news and heavily discounting the bad news. is this something that is already priced in, the idea that there will be a stimulus package passed? >> you are absolutely right. what we have seen in the market over the past few days including last week and the couple days of this week is reminding us that the biggest driver for the 2020 stock market rebound is the policy support. you can see the market reacts to it. today, it seems to be that there is a good chance it could go through by the end of this week. the market is reacting positively to it. i would say there is new

uncertainty, but it seems like the leaders of the parties have indicated their commitment to reach an agreement. inely, the market is pricing a significant probability for the bill to be passed. haidi: the market finds itself in a weird space. there is vaccine optimism, but cases are rising. we are looking at new lockdowns in the u.s. on the balance of things, where do you put the money in your portfolio knowing it is going to be some months, potentially a year, before we are on the vaccinef this when the and immunity takes hold? feifei: i think you are right. i also think they typically -- the market typically goes way ahead of the real economy. i've been recommending investors consider value in small caps for a while.

i think in november, value had a pretty unsung month. i think the promising vaccine news is a strong tail wind likely will become a catalyst for a rebound. the infection curve likely will consistently drop, and economic lockdowns, social distancing becomes less necessary. value stocks benefit tremendously from the resilience of the economy when covid challenges dissipate. sherry: this chart on the bloomberg showing us how we see these record short bids on the u.s. dollar. there is the dollar headed at a

time where we have seen significant depreciation, not to mention we have those risk events in january with the georgia runoffs. would say the currency in the short run is very dependent on the interest rate differential and inflation differential. rate inthe low policy , there is noates carry of yield. people expect the vaccine will drive the global economy, growing much faster than 2020. the safe haven roll by the u.s. dollar is ending. risk appetite growth -- investors no longer need that much dollar, and u.s. inflation has risen faster than people expected, even though the fed has been saying inflation will likely stay low over the next couple of years. the supply side,

they are trying to stimulate certain consumption with stimulus checks and unemployment insurance payments. the supply side is actually much weaker. there's a gap between supply and demand. as we know, i think inflation in the u.s. will rise. who knows? i think it's bad news for the u.s. dollar. shery: on the others, good news for the chines yuan, especially when you mention this rate differential with the 10-year sovereign yields at premium highs over treasuries. feifei: certainly. we'vee chinese yuan,

experienced a pretty rapid appreciation over recent months. like you said, i think the rates are high in china. the policy rate is higher, and also the inflation -- i think there was relatively high leverage in their residential means not much inflation pressure. production came back really q1.kly from right now, it looks really good for yen, but going forward in 2021, 2022, there is less room for yen to appreciate. feifei lin, research head of equities. still ahead, stanford university

hoover institution's senior writer neil ferguson shares his concerns as nations load up on debt to mitigate the economic impacts of the pandemic.the msci is the latest to announce it will delete chinese companies from its indices following moves from the s&p, dow jones, and the ftse russell. plus, don't miss our exclusive interview with hong kong stock exchange chief executive charlie li as he plans to bow out after a decade in charge. this is bloomberg. ♪ when you switch to xfinity mobile, you're choosing to get connected to the most reliable network nationwide, now with 5g included. discover how to save up to $400 a year with shared data starting at $15 a month, or get the lowest price for one line of unlimited. come into your local xfinity store to make the most of your mobile experience. you can shop the latest phones, bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your local xfinity store.

this is "daybreak asia." i am karina mitchell. moderna's covid vaccine is safe and effective, clearing the way for emergency use authorization. the fda says the shot is 94% effective. the news comes as reported cases continue to rise.

new york city faces a possible stricter lockdown after christmas. denmark is extending its lockdown to the entire country, and italy may impose further social curbs. the japanese government has approved a third extra budget with more than 200 billion dollars in spending to support the economy through the resurgent coronavirus pandemic. the plan includes money for domestic travel incentives that administrators suspended this week. that creates a problem for the upme minister who is holding the stems package he originally championed. defeat for a malaysian spending plan would have been the same as losing a vote of confidence. malaysia's rating, saying that narrow majority implies persistent uncertainty. global news 24 hours a day

powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. shery: the msci says it will delete the securities of 10 chinese companies referenced in an executive order signed by president trump. it marks the latest step to d-link companies the u.s. claims have ties to the chinese military from foreign investor flows. for more, let's bring you to tom mackenzie in beijing. what more do we know about this decision from msci? have heardays they feedback from more than 100 of their u.s. clients and non-us clients, as well, market participants, institutional investors, who say they are concerned about having exposure to these companies, the securities that as you say were included in this executive order because of what the

u.s. administration says is there links to the chinese military, chinese security services. it is on the back of that concern that the msci is deleting these securities. in terms of which names are on the list, the executive order applies to 31 chinese companies. the ones that are being deleted from the msci global investable market index include the likes , asemi conductor makers surveillance camera maker, also the likes of china railway construction. amongst the 10 that will be deleted. this decision follows a weeding out of these companies from , dow indexes, the ftse jones, all looking at their indexes and seeing what

companies they will have to take off. this is tyingse, into a broader push by the trump administration even in the last week of that administration to decouple from china. tom: the rationale is they don't want u.s. money and u.s. funds going into companies that could pose a security risk to the united states either now or in the future. that is the rationale from the u.s. side. it should be emphasized that china says it opposes those measures. companies like smic say they only produce semiconductors and equipment for commercial use. they say they do not have any military ties. this company is one of the best bets and has been one of the best bets for china to build out its own indigenous semiconductors and become less reliant on the likes of qualcomm and nvidia. to put it in context, that

company saying it only aims to produce products for commercial use. this is part of that further tightening in terms of fund flows. shery: with the tension between beijing and washington, charles li says hong kong's links to the mainland are irreversible. his success will need to double down on that strategy. he spoke to sophie kamaruddin about the role that hkex will play in that future. willes: the chinese market never be like the international market in its entirety. the international market will never be able to bleed into the chinese market, but there will be enough middle ground where they do intersect. that in that intersection hong kong has to find its most relevant role. shanghai will play in that role.

singapore will play in that role. hong kong is the only one that andtruly move in between needs to find a way. the chinese will be here, and there will be something in the middle. when that middle is no longer growing, hong kong needs to go deeper. sophie: there was some mention of embracing chinese assets. you see the index including that have stalled given the sanctions by the trump administration. what are the implications of that on china's attempt to integrate into the global market? look at thatou global map, invariably you will walk away with the conclusion place wheres a yield is going to be.

fundamentally, economic development is stronger there. the consumer class is growing there. people are getting more wealthy. the currency is becoming stronger, and their supply chain is resilient. while this decoupling will continue to put stress on the respective economies, i think relatively speaking the chinese market will become increasingly more important for global investors. policymakers,nt individual politicians can always do whatever they want to do that can potentially create a moreerm impact on localized target, but as i said, financing money is like water. you can't block water.

you can block water from one area. you can't block water all the time. through,g to sift though up to the sky, and then rain on the other cited. they will find a way to get there. sophie: what are your thoughts on banks complying with u.s. sanctions? charles: i think banks are global businesses. the government has developed intrusive, sometimes arguably arbitrary tactics of one they want to achieve goals. the banks have no choice, and they need to be overly compliant. sometimes, that brings unnecessary and also unfair and unjust consequences to the customers. but as i said before, our

today,es, our politics nothing is free. every action has cost. it's just if unfortunately you have to be the one to incur the cost. what can you do? li speaking with our markets reporters sophie kamaruddin. plenty more to come on "daybreak asia." asia- i'm dough hirsch.

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a quick check on the latest business flash headlines. apple analysts see strong demand for the iphone. -- a reportthe underpins the optimism, looking at a 30% increase year on year.

the $96 million figure is well ahead of expectations. protests at an iphone plan in india are said to cause no long-term damage. by aactory was operated ompany.based c they're working with police, local authorities, and its insurer. snowflake extended a three-day slump. as investorsl cashed out since they went public in october. revenue is forecasted jump 80% next year. don't miss the big interview coming up later. dell recently reporting earnings beat the street. we will be speaking to the president for asia-pacific and japan.

coming up next, we take a look at the deaths -- debt piling up as nations get through the pandemic. neil ferguson is with us next. this is bloomberg. ♪

shery: about half it is dozen banks will announce rate decisions. at let's get to sophie in hong kong. first, let's paint the context going into 2021. e.m. central banks are under pressure to reverse course after easing the most. during the 2008 crisis, bloomberg intelligence warned disinflation will persist.

on the dm rates side, that is seen normalizing. if yields in the u.s. rise to quickly and tighten financial conditions, it could spark a selloff. local currency debt may benefit, and with u.s. yields likely staying range bound, bloomberg intelligence says credit spreads will likely be the main driver of e.m.-dollar debt. these are the fair value estimates for credit as far as hedge rates and currency. credit around 3%, 4%. for merging currencies, that is seen at -2% to -4%. douglas nguyen says risks to markets and the economy will remain well into 2021. he spoke with haslinda

amin. douglas: there are elements of the market people will look back on and say, how did that happen? that happens from time to time. the markets are going through a period of divergence. what is interesting is the fact that the financial infrastructure, the architecture of the system has held up extraordinary well during this period. one of the observations i would make is if it hadn't been for all the work done by the industry and more importantly by weicymakers and governments, would have had a financial crisis alongside the pandemic. the market seems to be pricing in a goldilocks situation with the vaccine. it will take time. douglas: it will take time.

i think the impact of the vaccine will take longer than many people hope. a moreket is discounting rapid rollout of the vaccination program. it is going to take well into the end of next year and maybe into 2022 before we get mass vaccinations across society. we will have to wait and see. having said that, there are many sectors that are going to benefit from the reflection that has been given across many economies in terms of building back economies that have been damaged. we are seeing a tremendous amount of interest in the esg financing. can we be better prepared for the next time something threatens the global economy?

do you think countries will be looking at the mounting debt in the coming years? how will they pay for this spending spree? is it too early to worry about that? douglas: it's too early to worry, but it's too early to think you can do anything different from what is being done at the moment. policymakers have an incredibly hard judgment in terms of when to withdraw stimulus and not precipitate a depression, a slower recovery, and that is an incredible judgment. in the meantime, what they've got to do is use this unprecedented period of low interest rates to build the infrastructure, build the capacity. it's important that the lending is done in the next few years goes into productive assets as opposed to government debt and residential mortgages. haslinda: 2020 has been defined by covid-19.

what will 2021 be defined by? douglas: it will be defined by the pace at which societies get out of lockdown. we are assuming the vaccination will accelerate that, but if we have a third wave in europe, if the u.s. wave continues and we see further restriction on people's ability to go out and consume, i think that will slow the economic recovery we are looking for in? it's. i think it will be defined by the success of the vaccine program. : is there a risk the market is underestimating? douglas: i think so. i think there is euphoria on the basis that we have a vaccine, which is fantastic. threeod news is we got vaccines and probably another three or four on the way. we are going to have a , andasbord of vaccines

there is a tremendous array of vaccine opportunities. i think there is still a terminus amount to be done in terms of the logistics to get at vaccine manufactured scale and then to distribute it and have a program of vaccination gets us to a point where society is protected. one of the things we all worry fake newshether the and social media discourages too many people not to get vaccinated when they should, and i think that is something that is going to be a challenge to deal with. it's important that people speak up. aberdeen chairman douglas flint. the pandemic is leading to a mountain of iou's around the world. to discuss his bloomberg opinion columnist and historian niall ferguson. it's always great having you with us. we've known for a while that fiscal hawks have gone extinct.

deficit spending has become a habit, but does this matter at a time when we are seeing historic lows for yields? niall: it obviously doesn't matter in the short-term, and that means certainly into the middle of next year, but i think it is important to recognize that we are going to be coming out of a pandemic, not a financial crisis, and that is a very different thing. by the time we get to something like heard immunity, which i estimate in the u.s. to be about may, through vaccination and natural immunity because people had the disease, the economy is going to bounce back much more vigorously than after the financial crisis. after the financial crisis, balance sheets were impaired. that is not going to be true in 2021. household balance are going to

be in terrific shape. i think there will be a surge of consumer spending on services by the middle of next year. it's going to be a different dynamic from the period after the financial crisis, and that means that i think there might be -- i hesitate to say more than might -- some inflationary pressures visible towards the end of next year. that's probably the thing to watch. shery: does that mean we should be thinking about the fed not in terms of just raising rates or trying to do anything else other than what the boj is doing, some yield curve control? niall: i think the best analogy is with the later stages of world war ii and the post-war period. at that time, the fed and other central banks were essentially reduced to being managers of government debt.

their job was to keep the real rate on a large stock of debt low, and that is the situation the fed is in now. that probably is fine for the short-term because in many ways covid-19 has been like a war, and it's been appropriate the fed adopted this position. in the post-war period, there was a tremendous mood in the united states, and i think it will be similar in the post pandemic period. it has changed its framework. it said it was happy to go over a 2% inflation target because it wants to average out inflation. the question is, what happens if it gets quite a bit above target? say,markets sit back and

we don't mind negative rates on these treasury-issued bonds? or is there going to be some tension between the fed and the market, particularly if you think about those bonds held by foreign investors. weakening at is the same time inflation goes above target, that is when you will see stresses and strains. it will be important for the fed to make sure it keeps control of rates. if you start seeing a breakout of rates, if the fed shows signs of worrying about inflation, then i think you are going to find yourself worrying a lot more about these large debt burdens that have accumulated. this is something i agree with my old friend larry summers about. it's not really the relationship between the total debt and gross domestic product you have to worry about. it's the cost of servicing the debt. when the debt is a large number,

big -- small movements in rates have big consequences. shery: that debt to gdp ratio, even more skewed due to the fall of the gdp in the pandemic, but do we need to worry not just about debt serviceability and capacity, but also productivity? if you look at china, we have been seeing gdp falling alongside productive investment. is this a cautionary tale? very: china is in a different situation from the developed countries of the west. in china, i think people are perhaps overestimating where growth is going to go. i tried to make the point in my most recent bloomberg opinion piece that i worry more about china's private sector debt then i worry about public sector debt in the united states, because that high level of household and

non-bank industrial debt is a reason why china's policymakers are going to be raining in the economy next year. you heard in particular the vice primary who is no longer having to worry about a trade war is looking at china's financial situation and saying, it's time to clean house, and i think you are going to see stresses and strain in real estate, local government financing vehicles, as authorities try to rein in the private sector debt and to avoid the excesses of the chinese economy in the period after the global financial crisis. i think most western economists are exaggerating what china's growth will be like and underestimating what growth in the u.s. will be like. need one global good news story to hang onto. in terms of western appetite for distressed debt in china, yes, we have seen the hedging of the

defaults this year, but there have been western funds gobbling up that debt. does that reinforce the problem? basically this idea that the government will always bailout -- they will always be the backstop. niall: it's not entirely clear where the line is drawn, is it? there are clearly going to be problems for second-tier provincial banks. they are going to be some of the weaker brethren among esso ee' -- among soe's. the one thing the chinese learned from 2008 was, don't let a significant financial institution go bust. the public sector can absorb a significant amount of the bad debt that is lurking out there in the private sector, but his point is that china's growth story, really since the financial crisis, has been

increasingly dependent on leverage, and if that is going to stop, if there is going to be some cleaning of house, china's growth is not going to bounce back to pre-pandemic levels. we might find that low single-digit growth is the new normal for china if the authorities are serious about cleaning financial house in the private sector. doing what should we be now when times are good? now that the economic recovery will continue next year hopefully, especially for the u.s.. washingtone seen in is during times of financial prosperity, we have not been able to build a buffer. niall: i think it is going to be interesting to see what happens in the two georgia runoff elections coming up for the senate. ofthe democrats win both those, they will have a chance of doing their more ambitious fiscal plans that joe biden

talked about during this year's presidential campaign. if they only win one or lose both, then mitch mcconnell will remain master of the senate, and not much will be done in way of fiscal support for the economy or tax changes. the probability is that the democrats don't win both, although the polls suggest it is pretty close, and that means we might find ourselves quickly time, which strange is associated with the obama presidency, when the republicans rediscovered their fiscal rectitude and stood in the way of large-scale and sustained fiscal support. i don't think the u.s. economy is going to need a ton of fiscal support in 2021 because i think it will be the roaring 2021, if not roaring 20's, as consumers start spending on services, but if you look ahead beyond 10

years, obviously the fiscal position of the united states is unsustainable, and there are going to have to be sooner or later some meaningful returns -- reforms. this could be collecting more efficiently the taxes supposed to be paid by wealthier americans, or there is going to need to be some reassessment of medicare, but i don't think anybody could claim that the u.s. is on a sustainable fiscal path unless you disbelieve the cbo's assumption that sooner or later, interest rates do go up. the larry summers view is that we are in a permanent ice age, which means interest rates are going to stay at these historic levels indefinitely. that reminds me of francis fukayama. i'm too much of a nestorian to think that history ever ends. at some point, those rates will move up. shery: always great having these

discussions with you. atll ferguson, senior fellow stanford university's hoover institution. we do have breaking news at the moment. joe biden has tapped gina mccarthy as the u.s. climate agenda chief, this according to "the washington post." gina mccarthy, around the environment till protection agency under the obama isinistration, and she currently head of the national resources defense council and has sued the trump administration more than 100 times, successfully overturning some of its attempts to delay energy efficiency rules, and according to "the washington post," she has been tapped as u.s. climate agenda chief. haidi: we are getting some news about the virus relief measures from the hong kong government. aey are said to be planning $5 billion or $6 billion virus relief package.

we were expecting the introduction of these new measures sometime before christmas, expecting those to support industries most affected by the reinstatement of these social distancing restrictions. hong kong has returned to the tightest restrictions for the virus as we have seen cases spike. coming up, in search of the perfect beat. helpedic makers have propel companies to the stock market. this is bloomberg. ♪

i am karina mitchell with the first word headlines. joe biden is a step closer to the oval office with the top republican in washington recognizing him as the winner of the election. mitch mcconnell says the electoral college has confirmed bidens victory and has sent his congratulations. the president-elect says he sees areas where they can work together. congress must ratify the decision next month. australia is refusing to back down in its trade dispute with china. than 50 ships laden with australian coal are stranded off the chinese coast after being refused permission to enter port. prime minister scott morrison says the band breaks the free trade agreement the country signed in 2015 and signals a worsening relationship. the european union has announced new regulations for big tech,

saying companies face hefty fines if they treat rivals unfairly or fail to protect users. the overhaul comes in concert with proposals from the u.k. and signals a tightening of scrutiny in europe. the rules set out criteria for tech and allow penalties of up to 10% of annual global revenue. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi: we are getting some breaking news across the bloomberg, the data coming through when it comes to japan exports. it is a bit of a disappointing number, a contraction of 4.2%. we were expecting just incremental growth of 0.4%. the adjusted trade balance is up about 57 .5% from october. we are seeing that break down when it comes to imports, a

decline of just over 11% year on year. that is also worse than expectations of a 9.5% contraction. exports to china, seeing a rise. you see that chinese demand story, the rare bright spot, but declines when it comes to exports to the u.s. and eu of about 2.5%. onare seeing that miss imports and exports. machiner of a drum which counts kanye west among its fans is roland. our asian stocks team leader joins us from singapore. tell us about the company. founded inany was 1973 by a pioneer in music

electronics who helped create many successful keyboards and electronic drums. 808.famous one was the tr- it failed commercially but soon caught on with rap groups like the beastie boys. the machine's unique tones are all over the place. kanye west released an album named after it. shery: what is so different now, and how good of a time now is it to return to the market? innting: they first listed 1999 at the height of japan's economic bubble. they flew really high, but the financial crisis hit the music industry pretty hard in 2008. roland suffered from some product mistakes, as well. also, tough competition and a strong yen.

a firm took them private in 2014 and helped them turn around, getting rid of some unprofitable business, and now they are selling about half of their stake in today's ipo for $350 million, the second largest ipo in japan this year. in terms of timing, timing is great since the topix is coming off its best month in seven years, and valuations are pretty pumped up. haidi: the coronavirus has really had an impact on musical instrument makers. impact is mixed. it closed retail stores while also halting live performances, but online sales have jumped as people with extra time on hand buy more instruments. roland is working through a backlog of orders due to factory

closures, but it is projecting a small revenue increase this year with portable digital pianos and small amplifiers selling particularly well during the pandemic. tu in singapore with the latest on roland. let's turn to sophie for what to watch. japanesee are watching pharma stocks on a report that the government wants to cut which is 70% of drugs, estimated to save about ¥430 billion a year in health care costs. add $210t is set to billion in spending, including incentives for travel. we are keeping an eye on airlines stocks in tokyo. in seoul, we are keeping an eye on samsung and chip stocks.

drilling into it, the set up for pc demand, that is said to be much stronger than it was a few months ago. chipmakers, very much in focus. you a quick get check on the latest business flash headlines. ms ci says it is ready to delete a list of chinese companies listed in president trump's executive order on firms linked to the military. saughtas saw feedback -- feedback. the companies referenced by the chipmakers.clude it has helped to process more than $50 billion of transactions each day. it would join the ibm global business services unit of 1000

banks, credit unions, and other organizations. peter thiel is said to be weighing a merger with an indonesian e-commerce giant. the value could be up to $10 billion. lots more to come. this is bloomberg. ♪

haidi: welcome to "daybreak asia ." ahn in new shery york. haves major markets just open for trade. a new virus relief package. treasuries retreat ahead of this week's fed decision. winsna's covid vaccine approval from drug regulators.

they say it is effective, clearing the way for emergency use authorization. japan approves the third extra budget including more than $200 billion to support the economy through the resurgent covid-19 pandemic. japan and south korea coming online. that's get straight to the market action with sophie kamaruddin. bank of america -- we given cashashes positions are underway. the nikkei 225 adding -- the yen stayed below the 104 level. additional funds for domestic travel incentives. spending has not led to a change. trade within range.

the fomc decision may be keeping that cautious. bonds have been the worst performers in the world this year. let's check in on the start of trade. .8%. we get jobs data for the ninth straight month. the jobless rate did moderate to 4.1%. the korean won on the front foot . let's switch out the board and check in on the mood in sydney. the asx 200 rising more than 1%. all sectors in the green. aussie dollar looking steady. yields are tracking the overnight move higher that we saw in treasuries. s&pminis little chain -- e-minis little changed. trading in an april 2018 low. kiwi stocks having 1% while the dollar trading study. -- steady.

haidi: we are watching that action and the kiwi dollar, the best performer in the economic and fiscal update coming through, saying they are expecting a better economic outlook. that has led to smaller budget deficits and they have project did back in september which is the pre-election update. gdp growth ending in june 2021. the previous assessment accounted for .5% contraction in economic growth seeing annual growth. to 2022-he time we get 2023. they are seeing a lower peak of the jobless rate. that is expected to peak in the fourth quarter of next year. 7.8 percent.t clearly, they are saying these indicators are looking at upside rather than downside risk for the new zealand economy.

it's an economy that has virtually eliminated covid-19 and they are still dealing with the fact that borders are closed but they are working on a travel nearbywith the likes of islands as well as australia. economic rebound is being priced into a poignant assessment for new zealand's treasury. our guest for more on the markets. i want to start off big picture because it looks like everyone is on consensus for the start of next year, continuing to be a bullish one when it comes to equities, bearish on the dollar and bonds. where are the opportunities and diversions in views we should -- divergence in views we should be looking at? .> that's an interesting story john authers pointed out yesterday that it's almost becoming consensus to worry about consensus risk right now. what we are seeing is something

thatdifferent than what side is saying. there's a lot of consensus risk. similareeing something in the cyclicals. this should be a year about repairing the damage that was done last year and that's an infrastructure trade, industrials, materials. i still think tech does well. the investment, managers, they are actually not overweight the cyclical trade yet so even though there is this idea that we are becoming too consensus, the way investors are positioned is not consensus. there is plenty of room to build positions in this new world we are moving into, in a vaccinated rebuilding world that has support of monetary policy capitalt and private that is chasing a bid to move

those risk assets overweight again. you are seeing a broadening out of that trade beyond north asia. of marketthat a lot participants as well as economists are overpricing or overdoing their enthusiasm on china's recovery. those china still remain the anchor for ems next year? daniel: it remains the anchor and that is an important market to watch but the point here is that last year, it was so narrow. it was almost supposed to be the p pandemic, the year for emerging markets. we were coming out of the trade war. this supportive monetary policy across the board and it should have been a good year for em debt and equities. the pandemic hit and changed that. it was focused in the tech side of the world.

now, we see that that is going to spread out from the north asia story. north asia will still be supportive but we are looking at latin america as well because latin america has two sides. potentially a better yield curve for better financial performance. we have the materials sector within latin america. and we have food products and consumer staples side. food and beverage is one of the areas that has got really strong pricing power, unlike many other sectors where we are actually seeing prices challenged quite a bit. food is breaking that trend which should help the company story an export story for latin america as well. erased its 2020 losses and we have seen some optimism about brazilian stocks because they were cyclically tilted. betweenhis a debate cyclicals and growth stocks going into 2021 for emerging

markets in which one will win? daniel: i think it's going to be a much more nuanced bait into 2021. in 2020, this was about a growth versus value story. now, the cyclical areas are going to take on some of the growth, some of the value. in most places, we still need to worry about the story going forward. energy you might buck -- energy might buck the trend. the industries that will support energy on the long side will take a long time to recover and there's a lot of pent-up supply that will come into markets that are badly in need of repair. we need to look for areas that are in better position to get earnings upgrades, a better earnings picture, better quality, and you know, some decent valuations, but valuation on its own will not be the driver. financials come on the other site, there are plenty of --

there are a few markets where financials look attractive because inflation has kept the rates picture a bit better. a steeper yield curve. brazil might be another. if we look at the equities story and the rates story in india and brazil, that will likely buck that trend into positive financials in the first place i would broaden on em exposure. shery: great having you want from state street, daniel gerard . karina mitchell with the first word headlines. karina: joe biden is one step closer to the overall office as the top republican in washington now recognizes him as the winner of last month's election. electoral college has sent its congratulations. they have seen areas where they can work together and says he hopes they can meet soon. congress must ratify the decision next month.

the european union announced new regulations for big tax, saying companies face hefty fines if they fail to protect users. the overhaul of current rules comes in concert with proposals from the u.k. and signals a tightening of tax scrutiny in europe. the rules set out new criteria in tech and allow for penalties. >> we respect companies but we say that the bigger they are, the more obligations they might have to fulfill. in other words, what it is is to give clarity, to give objectives. everybody is welcome in europe. bank iseuropean central lifting its ban on bank dividends but is imposing strict limits on how much can be handed over to shareholders. lenders are being allowed to resume payouts and share buybacks but must keep them to 15% of profit for this year and

last or .2% of key capital ratio. that is a more conservative payout than the bank of england announced last week. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. haidi. haidi: we have been talking about this story, the relisting of the electronic instrument keyboard run maker. we are seeing a muted debut in opening 2900g or ¥54, shy of that ipo. this is what we are seeing when it comes to the price action. this on the back of a resurgence in demand with people stuck at home and learning -- perfecting the instrument. 6.5% with that relisting debut. still ahead, we will be speaking with our guest, getting his

outlook on hong kong stocks and economy. coming up next, the vaccine rollout. it is found to be safe and effective. we will get the latest, next. this is bloomberg. ♪

>> the fact that we were able to get this vaccine developed in record time is nothing short of an extraordinary scientific accomplishment. >> when we activate millions of people, some rare events of her with almost any vaccine. that is outweighed by the benefits we are seeing. >> medical professionals were prepared to respond if there were any issues with the vaccine. that does not happen. everything went purposefully smoothly. >> it's imperative to get the vast majority of americans vaccinated. >> we have a lot of data showing this is a safe and effective vaccine.

>> we will make sure we can get vaccines to people because this is the beginning of the end of the pandemic and that is the most important thing. experts onlth care the significance of the vaccine rollout and we have also learned that moderna's vaccine is one step closer to emergency use. experts found it to be safe and effective ahead of a final fda decision thursday. joining us for a business and historical perspective of all of this is the associate vice chancellor of the washington university in st. louis and expert on drug discovery. thank you so much for joining us today. there's a lot of vaccine optimism out there. we are talking about exceptional discoveries, exceptional togress when it comes achieving and getting these vaccines to market in such record time. what are we not talking about right now? >> probably the biggest thing we are not talking about are some of the unknowns and that does

not necessarily mean they will be negative. they are frankly unknown. some of those are how long will the protection last? we know from the data that has come out so far that it will -- presumably a few months at least but we don't know if this will oncere a boost annually or a decade or what the frequency if ever will be needed. that's one of the key things. we havee have -- shery: talked about mckenna, pfizer. -- moderna and pfizer. they might not be as competitive when it comes to emerging and poor countries out there that need these vaccines at lower costs, not to mention that super cold is not an option. the logistics and expense of the logistics associated with the pfizer vaccineand the moderna which requires standard freezing, that could be done away with by the astrazeneca

vaccine which appears to be probably the most affordable to produce. the problem is that astrazeneca has been frustratingly opaque in terms of their data about both safety and efficacy and the opacity has also been shared by some misstatements, especially on the efficacy side when they released information suggesting it was 90% effective when in reality, that 90% was a subset and it was overall effective 62% to 72% of the time. the vaccine is a bit premature to assume it will be approved in rapid succession. haidi: i want to get your views on the transparency of the progress because obviously, there's been lots of concerns as well as enthusiasm and positivity about how quickly this has managed to happen compared to the duration of a regular drug trial. we had our bloomberg opinion columnists writing about the need for what those four members

of the panel who voted against biontech and pfizer vaccine had to say. do you think it's important that that information is out? what would have been the reason for them to not have that be a unanimous decision? michael: getting to the bigger question, the transparency is going to be absolutely essential. the scientific challenges and medical challenges of getting a vaccine to the public, we have accomplished that. the key will be getting people to be willing and eager to accept this vaccine. that is going to be a rather tall road and we are going to have a big problem with that because we are already amidst a period where we are in maine anti-science period where there has been a lot of distrust of vaccines that predated 2020. the fact that you have names in the united date such as operation warp speed that

unintentionally conveyed the concern to many consumers that this was being rushed and their safety might be at risk. we have no evidence to that effect. we have been so incredibly fortunate with these first two vaccines especially to see amazing efficacy without any significant and lasting side effects. itdi: in case you thought was easy, of course, we had the csl vaccine and they will not be continuing with it after some problematic results to do with the false hiv results in some of the trial participants. in terms of a bigger question, how does the fast tracking of the vaccine development potentially change or how should it change the way drug discovery happens from here on in? michael: i'm hoping we can take away some lessons from this. pandemics occur quite often, every two or three decades.

the pandemic tests many aspects of our society and it might provide an opportunity to determine what is the proper balance between expediting getting a new medicine or vaccine approved versus regulating it to make sure it's safe and effective. there is no simple answer and we go through these periods. we saw this in the 1980's with hiv-aids where a lot of the medicines were fast tracked and then in the 90's, we had medicines that were found to be toxic and that slowed things down so we are always rebalancing that equation. we will get a tip and the balance towards can we be more efficient? it's crucial because it's becoming evermore efficient to manufacture and discover a new therapeutic so we really need to have those efficiencies. haidi: thank you so much for joining us, michael kinch. let's get year-round up of the

stories you need to know to get your day going in today's edition of "daybreak." bloomberg subscribers can go to dayb on their terminals and it's also available on mobile in the bloomberg anywhere app. lots more to calm. this is bloomberg. -- t

haidi: let's take a look at one of the shares that is making its renewed debut in tokyo. returning to the market is the manufacturer of electronic instruments, keyboards, as well lovedrum machine that is by kanye west. we are seeing narrowing of this, shy of 6%, opening lower than its ipo prices. demand forn pandemic these instruments. approved ainet has

third extra budget with 210 billion dollars in spending. prime minister suga looks to support the economy amid a resurgence in virus cases. laura reynolds is with us out of tokyo. japan's fiscal measures during the pandemic have dwarfed what they did during the financial crisis and after the 2011 tsunami and nuclear disaster. how do we see this money being spent right now? >> we cabinet approved the third extra budget this year. normally at this time of year, we would be looking at the third sector. the fact that it is a third extra budget indicates how seriously they are taking this crisis. the amount of spending is ¥21.8 trillion which is $210 billion. some interesting parts of that ¥1lude that one trunnion -- trillion is extending the travel incentive program. that's a clear sign he has no

intention of giving up on it even though he suspended it for two weeks over the new year because of the virus spread. critics have said that the ghost who program for this travel incentive could be one of the factors beyond the fact that we have a record number of cases in japan at the moment. suga is saying it's the best way of showing up regional economies. it's worth noting that we saw a record 3000 new cases in japan on saturday. apart from that, we have ¥4.4 trillion for coronavirus prevention measures and ¥3.1 trillion for disaster management. 11.7 trillion, which is supposed to have firms adapt to the coronavirus. it will kick into the new financial year which will start in april. shery: we had pretty disappointing trade numbers out of japan. what are the chances given all of this macroeconomic environment that japan can

actually sustain its economic recovery? economists are becoming increasingly concerned that the renewed spread of the virus will weigh on sentiment and some people are saying it could push the economy back into reverse after a recovery period in the last quarter. shery: how politics reporter in tokyo, isabel reynolds. here is a quick check of the latest business flash headlines. shares in chinese search engine baidu rose to a 20 month high in new york on reports it is weighing a move into electric vehicles. local sourcestes and says baidu is considering contract manufacturing. a majority-owned venture with an established carmaker. baidu has been talking to multiple companies although no decision has yet been made. chinese clothing company -- has defaulted on a bond for a second time this week. a filing to the shanghai clearinghouse says it has failed

to wire funds to pay the coupon on a one billion yuan note due tuesday and is blaming tight liquidity. it has delayed the payment twice earlier this year and defaulted on a similar 7.5% note on monday. company backed by richard lee and peter thiel is said to be weighing a merger with a giant. it is looking at a deal with one of the most valuable startups in southeast asia and the tie up at $10 billion. sources say talks are at a preliminary stage as bridgetown may get -- may yet look at other targets. do not miss a big interview coming up later. that beatted earnings wall street estimates. we will speak exclusively to the president for asia-pacific and japan. coming up, our exclusive interview with the hong kong

exchange's chief executive as he plans to bow out after a decade in charge. this is bloomberg. ♪

shery: breaking news out of japan. we are getting the japan manufacturing pmi's for the month of december. these are the preliminary numbers coming in at 49.7. which is an improvement from the previous month and it's also very close to that 50 threshold but still, in conjunction territory. it has been in contraction since may of 2019. when it comes to the services pmi, not looking great, not surprising given we continue to see virus infections. 47.2 is the number which is a decline from the previous month.

the composite pmi coming in at 48 and this is also a client from the previous month and the composite pmi also in contraction since february of this year. we are watching this japanese eco-numbers closely given that we already have very disappointing trade numbers earlier today. haidi. haidi: they were a disappointment. let's get to hong kong. the outgoing head of the hong kong exchange is doubling down on the growing influence of chinese markets. his comments, as indexed in pilar's -- compilers are set to -- mainland companies. the chief executive spoke to us two weeks before he steps down. let's get it over to sophie kamaruddin who had that conversation. what were these thoughts that charlie had on the deterioration in u.s.-china ties? one of his metaphors come tearing -- comparing money to the flow of water.

water cannot be blocked. when i asked him about implications of tighter u.s. security on china and what that means for the integration of china into global markets, he spoke of the middle ground that we can still see the u.s. and china expecting and coming from an operator's perspective, the opening up of mainland markets is something he said cannot be neglected, that china is seeing increasing importance. have a listen. >> if you look at that global map, invariably, you will walk away with the conclusion that where yield ise going to be because economic development is stronger there, the consumer class is growing there. but people are getting more wealthy. currency is becoming stronger and their supply chain is resilient, as strong as ever. while this decoupling will

continue to put stress on the respective economies every tether, i think, relatively speaking, the chinese market will become increasingly more important. charles li on how china is an important part of the map. we see them do you list securities, including the msci following on some ftse rest and s&p. shery: what does he have to say about key acquisitions in his career? timing is key. while that effort did not score affirm charles did acquisitions remain a key part of the strategy to expand and diversify the business outside of its comfort zone. have a listen on that. >> we were very clear from the

very beginning that there are four things we are going to want to do. we want to connect the waters and change the fish. three, we want to expand outside hong kong and equities. lastly, we want to modernize our platform. the acquisition is really our number three strategy which is to expand beyond equity and hong kong and we took the first step equity toeyond commodities and beyond hong kong. thatat's a great venture gives us the confidence and perspective and experience to we probably but were a little bit late. it's going to happen january. it did not. it said it was going to happen in october. let's wait until october. and then they announced their

own transaction so we were left , evenither just sit tight though we fundamentally, you know, decided to do it, with very broad support at the board and also the stakeholders. we do something, but i decided let's go and shake the tree. maybe the apple will fall. if it does fall, good luck. it did not. >> increasing market efficiencies, leveraging data, will be more of an emphasis for global exchange operators. you anticipate more dealmaking within the industry consolidation perhaps? charles: the industry , traditional businesses are becoming more and more of the past because it's not enough -- it will not make enough of a difference on trading. think the acquisition is, if it

ever happens, is coming down the hill kind of acquisition, really acquiring assets that is not exactly in the traditional financial services buddies sort of what can be, you know, put into supplement. particularly data. and ihs, those big giants eventually putting their massive data business together. acquisition for traditional exchanges, i seriously doubt we will see a megamerger. every one will do things on the side and edges. we potentially still, because of the massive potent forces from china, we may or may not necessarily -- i increasingly should not be using we anymore because i will be out of the exchange but hong kong exchange

is money people need to watch or because they still have the capacity and they still have the potential market demand and and absorbing power for them to do something more interesting and more dynamic and innovative so i will be cheering them on the side. think there is room for the acquisitions? transformational approaches are very hard to come by. you know, occasionally interesting in specific areas. we tried some big one. i doubt any time soon that, you know, the big ones are easy to grab because exchanges tend to be geographically and sovereignty wise or sensitive.

serious doubt of our let's exchange acquisitions. sophie: charles lee, the chief of the hong kong exchange. never one afraid to shake the tree there. of an era.s the end sophie kamaruddin with that interview. we are getting breaking news on another meditech ipo. at 46isting being priced million shares at $24 each. that is at the top end of the range. this is the online retailer pricing at $24 a share according to people familiar with the matter with the story. -- theyfrancisco-based sold 40 6 million shares in the ipo that looks set to raise 1.1 billion u.s. dollars that would value the company at around $17 billion. this is just the latest when it

comes to a blockbuster year, blockbuster month. tech and ipo listings. >> not surprisingly have these stay-at-home trades. 1078 morea confirming coronavirus cases and this is an economy that did not have to shut down, that they actively contact traced people. they were able to maintain certain restrictions. they are at level 2.5 when it comes to that five tiered system on the social distancing restrictions but right now, south korea confirming more than 1000 cases after a whole week of seeing more than 600 daily cases so we will continue to watch what happens because a level 3 would be semi-shut down, something we have not seen during this entire coronavirus pandemic. let's return to hong kong and the broader markets because our next guest says the city faces an uncertain path in its economic turnaround. the head of research joins us now.

we are talking about all of these ipo's and tech listings in hong kong as well and that has really been a positive for the city that has reeled from so many protests in economic turmoil, but what happens when you have the beijing policymakers cracking down on anticompetitive behavior on simtech? what happens? facingsimtech sector is consolidation stages in the market right now. coming toompanies are hong kong to list it. there's lots of areas for high-tech companies not touching those regulatory requirements, the wholesitive on center. i think mikey you will see from internet companies, facing those months, -- the

market will be more positive in the medium-term. >> we have already seen this rally when it comes to the chinese equity market, so how much more room do we have to rise at a time when we are already seeing policymakers be a little bit more reluctant when it comes to financial risk? china, the shanghai composite index, and actually, it's fairly low. you have lots of room for china to grow in the equity market, but i think the financial risk right now, i think china -- they are targeting internet companies and conglomerates for internet lending because the pfizer risk may be affected on this level, so the whole system right now because china is recovering, financial risk is revving up and

lowering and at the same time, you have to tighten the regulatory recovery -- requirements on borrowing. that will restore order in the financial sector. that will be a good thing for china in the coming years to have a healthy development of the whole sector. >> we have seen the strength of the chinese consumer play an integral part of the recovery. which sectors in particular within that consumer space do you see opportunities? you are looking at the november numbers. those numbers i can tell you the story, i think they are consumer discretionary. those things are doing so well. so i think in the early part of the recovery of china that the record might be june or july and relies on the supply side. now i think the people save lots

of money. they have purchasing power for them to come out and spend. in the next few months, the items you will see have a strong growth and that will be very positive for the whole sector to outperform other sectors in the market. at msciyou take a look china, hovering pretty close to the highest level since the inception of the index. when it comes to the chinese equities, in hong kong or mainland, where is the next leg up? it seems to have struggled with resistance at this point in the rally. it is resistant because may be in the last few months actually, ups and downs are very high and some of the sectors perform a lot. they might be waiting for consolidation by the end of the year.

eye on we have to put an q1 because you will see may be a big shift of sector spending and some of the investors have to shift their wheels for the sector -- it might be more like shipping money into the traditional sector. think consumer discretionary's are good. actually, they will be outperformed because it might be a bad year for them. it will drop around 10%. i think may be strong rebound. it's over already for banks so they will see lots of rebounding on this sector in q1. shery: when you talk about financials, is there a risk on those nonperforming loans, especially in the smaller banks across china?

>> when you see the numbers right now actually, they can still control the risk, but the good thing is china is on the path of a full recovery. , theyand medium-sized might be occupying big shares of the banks. -- it is still controllable in the market. --hink the central bank watch out. there is risk behind it. things are see those really cautious. expecting the people of china -- monetary policy. invest enough money for companies to fulfill their

capital demand only. loss of liquidity in the market. it's a bubble. always appreciate your time. we have lots more to calm on "daybreak asia." ." to come on "daybreak asia this is bloomberg. ♪

karina: i am karina mitchell at

the first word headlines. joe biden is said to have chosen jennifer as the governor from the -- to lead the department of energy as it gears up for a bigger role in fighting climate change. the agency has a 35 billion dollar budget and is responsible for among other things maintaining the nations nuclear warheads and emergency oil supplies. biden'sarthy will lead domestic climate agenda. japanese bonds are facing a rare annual loss for 17 years amid record borrowing from the government and reluctance from the boj to boost bond purchases. japanese government debt has despite gainsent seen and all of the other 45 bond markets tracked by bloomberg. the malaysian prime minister has survived a key leadership tests with lawmakers approving a budget for 2021. his spending plan would have been seen as losing a -- a vote of confidence and it

reinforces the margin. that narrow majority implies persistent uncertainty. new data from sri lanka show the economy entered and exited recession with growth returning as virus curbs eased. 1.5% in the following three months and snapping two quarters of decline in january. the central bank has lowered borrowing costs five times this year. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi. saudi arabia will stick to its plan to cut spending by 7% next year after its budget deficit widened dramatically amid lower oil prices and the pandemic. the kingdom's finance minister outlined his plans to tackle the deficit and rollout vaccines in

this exclusive interview. expect the vaccine we bought to be arriving very soon. i would say possibly within hours. the ministry of health has a very clear plan on how they are going to distribute this vaccine. it will be free of charge for everybody with nationals or ex-pats, even illegal immigrants. free of charge vaccine. obviously, it will need to be rolled out on a priority basis for those who are most vulnerable. the restre service and of the people. it will take time like everywhere around the world but we expect within the next few months that almost everyone who needs the vaccine and wants the vaccine to be vaccinated. you talked about adopting a

more effective spending plan. how does that translate into priorities for the new year? i know you have a long list of fields and issues we want to address but if you could perhaps prioritize the spending for our global audience, what is the absolute top priority here? >> this is a very important question actually. so we people's health still believe we are not out of the woods yet and we wanted to make sure we have enough financing for the health service. sure weanted to make were prepared for, god for gated two for saudiave arabia. the levels of infected people is lowering significantly. the second priority is focusing

enterprises, basically going back to our original plan and funding the efficient 2030 jobs, toto create more enable the private sector. financial technology is another area we wanted to make sure we have enabled more investors. generally, in the industrial sector, there are significant opportunities we have seen even in the last third and fourth quarters, we have seen a very healthy rebound of activity and we want to push that even more in the years to come. shery: saudi arabia and finance minister speaking with yousef gamal el-din. we have a headline crossing the bloomberg. states are expected to finish an

antitrust lawsuit against google, alleging google has altered the designs of their search engine to the disadvantage of rivals according to people speaking with politico. we have seen the department of justice, not to mention the attorney, filing that suit against google in october as well and this is one of the biggest antitrust cases against the tech company, more than two decades. the biggest antitrust suit was in the 1990's against microsoft. we continue to see this push against these tech giants and action against facebook last week as well. we will have plenty more to come. this is bloomberg. ♪

>> a quick check of the latest business flash headlines. msci says it's ready to delete a list of chinese companies named in president trump's executive order. it sought feedback for more than 100 u.s. and are market participants who suggest it may have a significant impact on global investors. the companies referenced by the president includes a chipmaker. cloud computing company snowflake extended a three-day slump after the expiration of a lockup that stopped insiders from selling shares. holders have their first chance to cash out since it went

public. it has fallen 17% from last week's record, erasing $20 billion in market value. revenue is forecast to jump 80% next year. is back onine maker the tokyo stock exchange after a share sale that raised $350 million. namedmposer has also been tracked by the likes of the beastie boys but retreated from the financial market. it has seen a turnaround and a surge in demand from musicians during the pandemic. coming up in the next hour, the economic head gives us her outlook for china plus he can hear from the managing director hear from the managing director on bloomberg economy. i prepares to bow out

after a decade at the helm. lots more to come on bloomberg tv. our markets coverage continues as we look ahead to the start of trading. open isg markets-china next. this is bloomberg. ♪

♪ >> it is 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets china open. i'm tom mackenzie. david: and i'm david ingles. we are counting down to the chinese open. moves closerf bill in washington with congressional leaders trying to hammer out a deal. they hope to attach