haidi: stroud-watts in sydney. we are counting down to the major market opens. shery: i'm shery ahn in new york. our top stories this hour. still no relief in washington. stimulus talks roll on white house claiming a deal is close. the sticking points remain in the government may shut down if funding is not agreed. during as vaccine wins backing from fda advisers setting the

stage for a second job to be cleared in the u.s. in as many weeks. they say the benefits outweigh the risks. asian markets head to the weekend as u.s. stocks see new all-time highs. the s&p 500 climbs for a third session. it searches through $23,000. a look at howake we are setting up this friday morning and asia. sophie kamaruddin is in hong kong picking a look at the markets. what are you seeing? sophie: at the open in sydney, little moves for the asx 200 after it rose after the budget outlook. aussie trading above 76, headed for a seventh weekly gain along with the kiwi dollar amid the dollar route. we are seeing that continue to falter. bloomberg intelligence expecting more rba easing next year to combat a rising aussie. we have kiwi stocks gaining ground.

this as the government approved more covert funding that is to last until at least june 2022. flipping the board to check in what is going on with japan ahead of the boj decision, we have the yen seeing the strongest level since march. nikkei futures, to a downside this morning. just a little changed after the session we saw overnight. boj, we ares to the expecting that they could see their covid funding programs extended to support pandemic hit businesses. the gold corners commodities market, it is heading toward $1900 an ounce. high.g near a one month credit suisse forecasting bullion will average 2100 next year. this after we have seen a pretty stellar year for the metal gold. story, a second covid shot has won the fda backing. the panel chip -- the panel

voted saying the benefits of moderna's vaccine outweigh any potential risks. the full fda could give that in the coming hours paired we have more from robert langreth. this recommendation was pretty much expected. what is next? robert: what is next as we expect the fda to have emergency clearance for the second vaccine in the u.s. to 36 hours. 24 that is what has happened with the pfizer vaccine. the advisory committee on thursday and by late friday night, it was cleared. something similar is likely to happen with the moderna vaccine. they are both very similar vaccines. it is very new technology. until last week, it was never an approved product before. at least for covid-19, it appears to work like nate -- like gangbusters with 94% efficacy. very good news.

it will significantly increase the supply of the vaccines. the pfizer vaccine, the first two point 9 million doses went out this week in the united states. . it is going to health care providers only. when and if the madonna vaccine is cleared, 5.5 million doses will go out immediately around the country. that will significantly increase the supply and allow the u.s. to start vaccinating at a larger percentage of health care workers. haidi: even if pfizer says it has not experienced production issues, we have heard from some state governors saying the allocations they have received is much less than what they had expected. robert: there is lots of confusion and complaints about the allocation. this is the pfizer vaccine. the allocation of the pfizer vaccine that some states got. it is hard to parse the details of that, even to tell what is going on.

there's no question though governors are complaining about it. pfizer have said they have not had any production issues right now. when they were ramping up production -- production, there were delays in getting raw materials that slowed them down. basically they could not make their original projections for this year. they had to lower it. at least the early production. they have ramped up the production and producing full steam ahead. . what may have happened is they have been shifting for how much of the state would get. states did not have a lot of clarity and what percentage of original shipment they were going to get an thought they would get more. it is not totally clear what is going on. as pfizer says, staunchly, it is not having anymore production issues. and the issues have been solved. haidi: we are also hearing amongst the medical professional field, some of the younger doctors and nurses are concerned about the longer-term effects of the vaccine, particularly when you are talking about things like fertility. we are also hearing the vice president and the second first

lady -- the second lady will be getting this at the end of the week. how important is it to build up public credibility and understanding and evidence-based understanding of these vaccines? robert: exactly. that is an important issue. that is one reason the u.s. food and drug administration did not approve the thing today's after the application. go throughure to these formal processes, standard process of bringing it to a public committee of leading doctors, so all of the data will be vetted in public. not many regulators in the world want to do this, but it got the raw data from both of the vaccines, pfizer and moderna, and reanalyzed at themselves. they took the raw data and reanalyzed it, basically came to the same numbers. effective.ve, 94%

it has been taking steps to bolster confidence of the vaccine, that shortcuts are not taken. it is true that these are new vaccines. the efficacy data are very short-term. they don't know very much about the long-term efficacy, how long it will last. so far, they seem very safe. there has been a few reactions with the pfizer vaccine. not that many so far given that in the u.s., the way i look at it, the u.s., 2.9 million people are getting it this week. you're one severe allergic reaction, that is an uncommon event. there may be more of an issue that emerges. we will have to sell -- we will have to see with these adverse events. they do happen in cases of the vaccines. you should not here about one or two severe reactions in a vaccine that is being rolled out fastest than it has ever before. that is not a reason to react. millions of people ought to be expected.

haidi: bloomberg health care reporter robert langreth there with the latest on the vaccine rollout and approval process. so close, yet so far away. that is where congress stands as democrats and republicans push to have a stimulus package signed by the end of the weekend avoid a possible government shutdown. kathleen hays has the latest. what are the hurdles we see in the way of a deal now? kathleen: a couple of unexpected ones. let's start with the optimism. mitch mcconnell himself, the senate majority leader, said today that a deal is close at hand. later in the day, he acknowledged yes, we may have to work through the weekend, but he now is much more optimistic, everyone is more optimistic. in fact, the bipartisan plan, $900 billion was settled on some of the basics. $600 stimulus checks to individuals. unemployment benefits. $300 a week. businesses.

everyone agrees to that. the easy things. this is important because they plan to attach their virus relief bill when it is passed to a $1.4 trillion bill to keep funding the federal government until september of next year. the stopgap bill that was passed last week expires tomorrow. so that is why this is so much more under pressure to be done. what is interesting, and important, two leading senate thatlicans have spoken up they want specific language in the virus relief bill that will end the fed's emergency lending programs that are funded by the treasury. this has been a big story starting four weeks ago when the treasury secretary, steven mnuchin, told the fed that share that december 31, we want you to give the treasury back the money that has not been used yet. that part has been done. that these senators want more

done. they want specific language. senator mike crapo, the head of the senate banking committee, he said it is becoming a redline issue for republicans. pat toomey of pennsylvania, and it.uential gop person, says is a top issue he says the crisis has passed, the feds pandemic programs were meant to be temporary. it is time to stop them. here's what he said today. it is not acceptable for anybody to decide they will circumvent this law, restart these programs entering them into something they were never intended to be. democrats say there is more leeway here. this is not necessary. but now apparently, some republicans are digging in their heels and this is something that will be hammered out as well. shery: tell us more about what then.to be hammered out, kathleen: the hammerkathleen: is still going to have to be pounded that is for sure. assistance, rental assistance for people who face

foreclosure, who face eviction. to extendbroadly want the eviction moratorium that has been in place basically since last spring when this whole lockdown started hitting so many people so hard. republicans are saying, may be rental assistance is enough. ab it is better and then we will not need this moratorium. now there is another question on the stimulus plate, and that is aid to state and cities, putting it through federal emergency management agency, fema. that his contentions. bernie sanders and others, even john holly from missouri, want to have $1200 stimulus checks. sanders says $600 is not enough. it is very tough. this is what it has come to. big issues left for the end. shery: our global economics and policy editor, kathleen hays there. we will hear from lisa cap awaits, the cofounder and executive director of the rogers center for women and business about how working from home

during the pandemic is setting millennial william -- millennial women in finance back. saysrtfolio manager emerging markets have an abundance of innovation and disruption giving it a unique adage. we will discuss. 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.

karina: you're watching "daybreak: asia." i'm karina mitchell. the government says the chance of a brexit deal is less than 50% with boris johnson denouncing the eu staff on fishing rights that is "not reasonable." brussels has set a new deadline for an agreement while admitting big differences remain. ursula von der leyen says progress has been made a bud bridging gaps looks challenging. negotiations will continue friday. the bot rose to a one-year high. after thailand was added to the u.s. currency watchlist.

the rise extended its string of gains to four days and adds pressure on the bot to stream from further intervention. the central bank says it has acted only to mitigate volatility and is not using the currency to gain unfair trading advantages. curfew. nationwide people know coast moved to higher ground as a major storm strike. it is bringing sustained winds of 250 kilometers per hour and a storm surge of prop up -- of possibly 15 meters. the capital is already suffering power cuts. . the map -- the last major cyclone wasn't when he 16 which killed more than 40 people. 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: emerging-market -- market stocks climbed to the highest point since january 2018 as investors continue to be optimistic about the rollout of

covid vaccines in the u.s. stimulus package. our next guest saying there are still abundant opportunities in emerging markets. joining us is emerging-market portfolio manager sara moreno. great to have you with us. we all know emerging markets are not created equal, and given the massive rally we have seen in march, where are you finding those opportunities? sara: good evening. thank you. the opportunities in emerging markets, what is interesting is the underpinning of the secular growth opportunities that exist within emerging markets. what the covid has done is opened the floodgates in a lot of the disruption and technologies that we have seen in emerging markets the penetration levels are still very low, be it e-commerce, financial services, online grocery. the digitalization of the consumer enterprise is in the earlier stages of emerging markets. covid has an opened and

accelerated that opportunity. we see a structural shift that has occurred, creating many opportunities, investment opportunities across emerging markets. shery: investors seem to have liked the story we are seeing in china. but we have rallied so much already in chinese markets. this gtv chart on the bloomberg showing they are underperforming broader emerging markets, especially since the u.s. election. where do we go from here? sara: within china, there are pockets we see of strength and to sectors that are still -- the low,ration story is still even for a china where things like e-commerce are more heavily penetrated and financial services online. something we are excited about is in the health care space. china is the second-biggest biggest pharmaceutical market in world, but it is still shifting out of a generic base to an innovation-based pharmaceutical industry. it is led by the investment

levels that the chinese government is trying to bring to the fore. gdp versus 17%f in the u.s. even a doubling of that, the 10%, is going to open up many opportunities. one of the subsectors where we see the most opportunity is with oncology given the chinese population is getting older and sicker with chronic diseases such as cancer. they are also getting wealthier. they will be able to forge some of the innovative drugs we have coming from developed markets. haidi: do you worry about the u.s.-china bifurcation story when it comes to the realm of tech? or does that mean that western investors really need to allocate more to pure play chinese equities in their portfolio? sara: i think what we will see has been aere localization, innovation to meet the local needs of the population. you are seeing it not just in china but southeast asia and america.

it is because it is not a cut and paste of the develop market models into emerging markets. increasingly yes, the fact that there has been a bifurcation, that does mean you do have to assess these opportunities directly. haidi: does that mean you also see, if china continues to be the em anchor for sentiment next year, assuming we continue to see the weaker dollar story play out, do you see a broadening of the em rally beyond the highlight of north asia? sara: yes, certainly. i think the structural shift, they underpin is the continued emergence of the emerging middle class across emerging markets. a lot of that is coming out of asia, but not just china. is southeast asia, indonesia and india where we see that continued. next one billion emerging-market consumers will come in the next five to six years. plenty of investment opportunities to the types of companies that a strategy can access by finding the companies that are serving these consumers.

haidi: emerging markets .ortfolio managers blackrock says u.s. equities will keep moving higher. spoked asset allocation with bloomberg about portfolio diversification as well as his take on the fed. >> there>> was a lot of analysis yesterday that said the fed was hawkish because it increased the weighted average maturity or they did not increase the purchase program. anybody who describes this fed as hawkish is so misguided, this is a fed that is just going to continue to be there and be as accommodative. they said they will continue the program at least as large both in treasuries and mortgages. i don't think they need to increase mortgages at all. i think they could shrink them. they are going to keep going. they will be incredibly supportive of the new administration and fiscal stimulus from here. david: the message out of the fed, i thought yesterday, was we think in 2021, it will start getting better because of the

vaccine, which we are hoping for so much. at the same time, there is a divergence may be a bifurcation in the marketplace, whether it is individuals or companies between some people who are doing very well, and some people who were doing very badly. rick: yeah. you hit the nail on the head. with the central bank, what it does is its tools are blunt. a lot of what happens as it lifts financial assets and it creates this bifurcation as you described. it pavesfed can do, the runway for other policy to come in. now you really need the fiscal. and the fiscal is where you can direct tax policy. where you can direct where the stimulus gets to. things like state and local. things like health care spending. education spending. etc. things that can actually close the gap. now we are actually going to get, when you think about chair secretary, treasury and now you've got two fed

chair's that are going to operate in concert with one another. and that is where you get effective policy, when it works hand in glove with one another. david: is not constructive or does not undermine the independence of the fed? how closely do you want the two of them to operate together? you call it pilot and copilot. rick: yeah, it is a great question. i do believe in the independence. and i certainly know that people at the fed really believe in the independence of the fed. however, you do create some coordinated. by the way, when they are not talking, that is a problem. having some coronation make sense. particularly as you described earlier. we've got a problem in the country that we need to put more people to work, until vaccines start to get implemented. we need to put more people to work. and we need to stabilize an economy and employee dynamic about israel. -- that is a real. the idea that the fed is going

to neutralize, and by the way, i think larry summers will talk about this. the paper they wrote on the system can withstand more debt is 100% right. as long as, and a big part of it is the fed is keeping rates low, so the interest burden on the economy is not onerous. david: you have two hats at blackrock. both as in chief men chief -- chief investment officer. where are the investment officer -- opportunities? rick: it gets harder every day. i feel like i'm in that every year. it's hard. i think the equity market is going higher. i think when people look at, you can keep what the fed says, keep interest rates down and leave them down for a long time. to, itates have gotten does not make the treasury market industry -- interesting. when rates stay where they are, that is value into equities and allows companies to finance for m&a, for capex, r&d, etc.

i'm pretty convinced of that. how do you create balance in the portfolio? it already hold some cash, holds some of your government rate risk. andgovernment debt you own, tips, to get inflation protection. . and get yield. it is getting harder and harder to get yield. parts, themarket securitized market, get some yield, get a bit more cash because it is harder to hedge today given where rates are. and then own the equity market because i think equities are going higher. i hear the story of why equities are fully valued. i think people who just do equities don't see fixed income and don't see the benefit getting to the equity. i think equities have got some upside to them. it doesn't mean we can't trade down but i think they are going higher. shery: our global fixed income rick rieder speaking to our colleague david westin. we will have plenty more to come on "daybreak: asia." this is bloomberg. ♪ bloomberg.

where looking at one decliner trading in sydney. the farmers pseudocode developer, shares dropping 40% after an update was received on its covid-19 trial. it has fallen the most in 11 weeks, after the company said trial, which was to treat patients with moderate to severe acute respiratory distress syndrome as a result of infection from covid-19, they were saying that the trial is not likely to meet a 30 day mortality reduction. the trial has not accrued data on secondary endpoint and they would need to evaluate all of the patients through to 60 days saying it will analyze those results. we have seen the disappointment play out when it comes to the investor reaction there. off by a significant drop. coming up next, is it going to be long until brexit talks

continue? they may stumble as both sides big differences remain. we will have the latest on these negotiations next. this is bloomberg. ♪ otiations next. this is bloomberg. ♪

we have breaking news out of japan. we are getting inflation numbers out of japan when it comes to the national cpi year on year, a contraction of .9%. it is a faster contraction then we were expecting for the month of november. it is also accelerating from the previous month. keeping an eye on the numbers, excluding fresh foods and that is what the bod follows -- boj follows. an acceleration from the previous month of october. it is in line with estimates.

core cpi excludes energy, and that is in line with estimates, a contraction of .3%. it is all about japan, and not being able to get out of that contraction territory and that deceleration for inflation numbers. when it comes to the year on year numbers, it is a fourth consecutive month of negative territory. although the boj has put its inflation target aside for the moment, given that we have the coronavirus pandemic, still watching those numbers. as you can see, the core cpi numbers year on year is a contraction of .9%. let's turn to sophie kamaruddin in hong kong for what to watch on the markets. sophie: taking a look at how trading is faring in sydney. stocks under pressure, selling this friday along with the aussie dollar. the currency and asx 200 are set for a seventh weekly gain. ubs penciling in the index at 7600 points next year on improved earnings and vaccine rollout. seeing gains for the index.

thisre little changed friday. let's switch out the board. boj decision in focus, when you see whether they will extend their support for the pandemic country.esses in the nikkei futures coming online to the downside while the end is trading near a march i. gold, stalling after we saw the overnight move toward $1900. the gold bulls are coming together amid the seasonal trade and dollar weakness. the pound and focus, telling resistance level. above 135. slightly under pressure after hitting a 2.5 year high. brexit talks very much in the limelight. shery: yeah, we will continue discussing what is at stake as the u.k.'s brexit negotiator says trade talks with the eu seems blocked and time is running out. there are less than two weeks until december 31 when the u.k. condition period and.

let's go to john authors. are we really going to see a hard exit because of fisheries? how important is this? well, my best guess is no, we are not going to see a hard exit because of fisheries. it is obviously a different -- a difficult one to finish because britain, as you can tell from looking at the map, a very big area of sea. could find exclusive territory. first of all, the two sides are not that far apart, it is a difference of whether the fisheries stay exclusive for three years or for eight. there are ways that you can meet in the middle on an issue like that. secondly, i believe fisheries are something like 0.02% of the british gdp. it is really not a big enough deal to hold up everything else.

it is obviously very symbolic. there are certain particular about that do care fishing a lot. but it would surprise me a lot if that was truly the reason that we end up with a hard brexit. i think we can probably look at this, judging by some of the mood music, some of the story is the british negotiators have been giving in the press in the last few hours, i think this is a desperate final big bluff, final big attempt to talk tough and get as good of a deal as they can. haidi: if this is gamesmanship, we know part of the problem is how boris johnson can sell this to a domestic audience. what kind of gymnastics are required to be able to get a deal over the next few days, and to be able to sell it domestically? both in the eu, but also to the

u.k. public that this is emergesg that somehow with the idea of a u.k. sovereignty intact? fishing, art of the reason both sides of things is a big deal is because it is one where britain is likely -- it has always looked more likely that the eu will concede further at the end. if you look at the way the british are talking about it, how fishing is the prime obstacle, they are a long way apart, force has been saying apparently that britain will be happily eating fish for breakfast, lunch, and dinner if we have to have a hard brexit. is part of the notion --

shery: i think we just lost john authers. he is our bloomberg opinion columnist. he was talking to us about what is happening on the brexit front. haidi: yep. and of course sticking with the eu, emmanuel macron is self-isolating after becoming positive for the coronavirus. we spoke with johns hopkins university nursing professor about whether the public change their behavior when they see high-profile speakers catching covid. >> the short answer is no. in the united states, it actually emboldened people who is notook, the virus really serious. the president bounced back quickly. and ultimately received treatment that would not be available to the general public in doing so. so it is hard to say. i think with boris johnson, we saw the public pay close attention, particularly in the united states. that caught everyone's

attention. with emmanuel macron, it will be interesting what the french people feel after they see his recovery period. >> how are the vaccines doing in the u.s.? ? we had a couple of people reacting badly, because they didn't have any allergies. does it make it that less people will want to have a vaccine? jason: yeah, so in the public health community, we are very concerned about what we call vaccine hesitancy. meaning people being fearful of taking the vaccine. as i've spoken before on this program, and folder closure, i am a vaccine candidate participant in a research study. but we just saw a case of anaphylaxis or allergic reaction in alaska among a health care worker who received the first dose of the vaccine. importantly, there are safety measures in place. once we give a dose of vaccine, we have the individual wait for at least 15 minutes to ensure there is no anaphylactic's or allergic reaction.

if there is, we have protocols in place to address it. importantly, we don't know exactly what component of the vaccine results in anaphylaxis. the fda recommended that individuals with a history of severe allergic reaction not receive the vaccine at this time. >> some of the figures you sent through are absolutely shocking. approximately one death in the u.s. 70 -- every 36 seconds at the moment. is this a new strain? there was talk in the u.k. that it could be a strain of something that is actually spreading quicker. any truth in that? jason: there have been several analyses and studies that evaluated the mutation patterns of the virus. all viruses may have this level of penetrance in the community have.nsmission some level of mutation there are a couple of genes that have demonstrated the potential for increased transmissibility. those same genes in the full genomic analysis of the virus have not shown increase in morbidity or mortality. while there is some debate right

now in the scientific community about whether or not these mutations are leading to potential super-spreader fears events, they do not seem to be associated with greater more ability or mortality at this time. >> can family safely gather for the holidays? jason: no. we have seen from the thanksgiving holiday here in the united states, that it has been a key driver of our increased cases. since that time, as we predicted, 10 to 14 days after of holiday, a huge surgeons cases -- surge in cases. we are seeing exactly what the epidemiologists predicted, which is a huge capacity, not being meetto meet many and -- the need and the. load of sites in baltimore we have opened up our field hospital again and are needing to send patients from our emergency departments who don't seem like they need admission directly to our field hospital.

it is an extremely important issue and i highly recommend all families consider strongly not traveling and not visiting for the holidays. nursinghat was professor jason farley speaking to francine lacqua. the pool -- the school of public health is supported by michael bloomberg, founder of bloomberg lp and bloomberg philanthropy. covid has devastated the aviation industry. we will assess the outlook for next year in an exclusive interview with stephen lien. how working from home during the pandemic is setting millennial women in finance back. we will talk to lisa kaplowitz, the cofounder and executive director for the rogers center for women in business. she joins us next. this is bloomberg. ♪

in,i: we're going to check this is the big decliner of the sydney session. the drug developers seeing a decline of as much as 45% after announcing an interim update on its covid-19 trial. this is the trial that was looking at patients who had experienced respiratory conditions as a result of a covid-19 infection. essentially, that trial finding that it is unlikely to me the 30 day mortality reduction that they have not yet accrued enough data when it comes to meeting the secondary endpoint.

there is some concerns when it comes to the efficacy, but no concerns when it comes to safety, and let the trial is still recommended to be completed with follow-ups. we are seeing that disappointing investor response in today's trading. lets you -- let's get you to karina mitchell with first word headlines. karina: we turn to another vaccine, moderna." 's covid-19 vaccine has won backing setting the stage for a second try to be cleared in the u.s. the panel voted 20-0 with one extension saying the benefits outweigh any potential risk, and the full fda could give its final ok in the coming hours. moderna's shot is based on the same research as pfizer and beyond tech which is cleared for emergency work last week. regulators advising rules for the company's covid-19 vaccine after a series of rare allergic reaction. pfizer says it shifts all 2.9 ordered.oses the u.s.

several state say they will receive fewer doses than first planned. california said they -- set a fatality record for the second day. new york topped 100 deaths in 24 hours. arizona reported its highest death count since august. over to hong kong which has moved to allocate more than 800 million u.s. dollars to support the economy as it struggles to contain a new virus wave. ours, restaurants, gyms, and educational outlets will receive the bulk of the money which will be rolled out next month. businesses mostly affected by social distancing curbs will be given priority. hong kong had been showing signs of stability before the latest virus surge. a cluster of covid cases in sydney is threatening to disrupt christmas celebrations at the height of the holiday season. australia's largest city reported 15 new cases on thursday, centered on sydney's northern beaches, bringing the two day total to 17. about a quarter of a million people in the affected area have been asked to stay at home.

other states may shut their borders yet again. 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. mitchell.arina this is bloomberg. haidi: today on bloomberg equality, we're looking at the world of finance. specifically, how the pandemic is affecting millennial women in the industry. our next guest says the work from home life could be detrimental to the career aspirations of a generation of women. joining us is university finance reporter lisa kaplowitz. she is also the cofounder and executive director of the rogers center for women in business. great to have you with us. it is fascinating as well as distressing looking at the nuances of how the pandemic, the work from home trend is impacting women across the board. you are saying essentially for women at a certain level, a genial level across the finance

industry, the lack of face time with their managers is really quite damaging. lisa: that is correct. thank you for having me. it is. because it is hard enough for a woman to be heard in a meeting in person. it is that much harder when we are on zoom because it compounds the biases many people already face. and the imposter syndrome a lot of women face about, do i belong? am i supposed to be here? again, that gets magnified, along with the impact of senior managers not getting to have face time with them. shery: -- haidi: this is one aspect of looking at the way that this pandemic, downturn, the recession, a pink recession, because it has in a heavier way impacted women in the workplace. lisa: that is absolutely true. here in the states, we call it a cheap session. more women are actually impacted than men, which is very, very different.

normally in a recession, the wage gap between women and men shrink because more men get out of work. but now with this session, the wage gap is increasing. two point 2 million women in the states lost their jobs between february and november. one in four women i thinking of leaving the workforce. millennial women are hit really, really hard. the burnout is real. the emotional labor. a lot of millennial women are also moms, have younger children. and women historically during natural disasters, which i think they can call the pandemic and natural disaster, take on the emotional labor, in addition to the unpaid labor at home. and if you are a black woman, that emotional labor is so much more compounded by everything else happening in the states with racial inequality. haidi: has there been a real realization in the plight of the

working parent now that so many parts of the workforce are working from home? they've got their kids from home, because schools are closed, daycare centers are not available. is there a point of reckoning out of the other end of this pandemic that there should be policy changes or a better recognition that this is what working families deal with day in, day out, with or without a pandemic? lisa: absolutely. we are really hopeful. right now, there is no such thing as work-life balance. it is not integrated. we are experiencing work-life overlap. women, thatial millennial woman in finance, she has experienced at the entire time. because when you are 25 to 40 years old, you are in your peak career earning. you are also in your peak childbearing years. there are a lot of assumptions made about whether or not you want to have children or not, and that happens well beforehand. however, in addition to the

overlap she is experiencing, men are also experiencing that overlap. we have now fully taken off the map of what is happening in the home. you see kids going in and out of the zooms. through our research, we found that twice as many men are doing five or more hours of unpaid child care at home. women are still doing more, but the really interesting part of our research, the silverlining we are calling it, is the more men contribute to the unpaid labor at home, the greater significant -- the greater, significantly greater women believe that their productivity and satisfaction increases in their paid work. which should not be surprising. we are actually really hopeful because we are hopeful the flexibility, not just desired by women anymore. the flexible work schedules are now going to be wanted by men. there is a weakening in traditional gender norms.

and a shift in what is really valued by everybody. shery: that is pretty encouraging. do you expect businesses to actually start adopting this mentality? lisa: i think you are seeing it. i know you are seeing it in the states. google announced they are going to look at work from home, flexible work, on a more basis.nt -- permanent . working from home 100% is not ideal. we don't need to be in an office five days a week anymore. . we have found that people are really productive when they don't have to have a commute. i think there is going to be a lot of flexibility. i think a hybrid work model is going to become the norm. i think you see folks like the ceo of a fashion -- of the leading fashion site in europe step down because his wife is going to focus on her career. while that headline is where the right now, i'm hopeful. we are hopeful that it happens so much more frequently that it is no longer newsworthy at all.

and then become less ashamed of creating these boundaries. when a man leaves the office early normally to go watch his son or daughter baseball or softball game, he says hey, i've got to leave the office. instead of saying, i'm going to watch my kids game, so i think with this work from home, and everybody's life literally overlapping, we are going to see more men be more comfortable. shery: and how do you make women more comfortable? you mentioned the imposter syndrome, women not being as confident to ask for raises or be heard. lisa: sure. it is really interesting. we have monthly webinars that are centered for women in business. one of the ones we did a couple of months ago was on how to prep for performance review and promotion virtually. when we started the event, we asked everybody, how many of you are going to ask for a raise this year?

38% said yes. then 50 minutes after, we gave some tips, make yourself 5% different, have everything documented, all of your accomplishments, etc. some other basic things. 67% said i'm going to ask for a raise now. and that is real impact. one is, educating these millennial women to be confident, to know you deserve the compensation, to be paid equally for what your counterparts are doing, that you put in the work. on top of all of that, be able to ask for the raise and believe in yourself. another way to do that is mentoring programs. one of the things that has been lost in this virtual environment is we need to create more established mentoring programs, across genders as well. it is really important to have people that look like you in positions of leadership.

but it is also important, and it works both ways, to have male mentors. men actually get a significant benefit by having a mentoring relationship either as a mentor or the mentee with a woman. because it makes them more aware of the challenges that exist as well. shery: it was great getting your perspective. lisa kaplowitz, finance professor, we've plenty more to come on "daybreak: asia." this is bloomberg. ♪

haidi: a check of the latest headlines.ash a new report ahead of tesla's inclusion in the s&p 500 warns the move is reckless and the stock should be 70% lower than at current levels. david trainor says the move adds unnecessary risk for investors and the stock should be trading at around $170 a share. $650 it isrom the enjoying. he says tesla has four fundamentals. doordash fell after research described its ipo as "the most ridiculous share sale of the year." adding the stock is worth a fraction of its current price. they say five intensive competition in food delivery potential new government regulations, as well as a lack of brand loyalty, he says they share is worth $40 at best, 75%

decline from wednesday's close. the biggest u.s. cryptocurrency exchange coinbase has filed to go public and what is seen as a potential recruit moment for digital tokens. the san francisco based firm says it expects the draft -- the draft to become effective after they complete a review. coinbase has not offered details of its plan. it was valued at $8 billion two years ago after a $300 million funding round. shery: japan and south korea, online at the top of the hour. let's go to sophie for what to watch. focus: carmakers are in insole. we are watching hand a motor, it is to take full control, which exports to more than 40 countries. nissan on watch after the carmaker decided against producing an electro vehicle suv in the u.k. on brexit uncertainty. choosing instead to ship the models to europe from japan. targeting ¥260 billion in cost cuts.

report that it has the price of its 5g mobile plan by ¥1000 per month. the stocks to watch on the open in tokyo and seoul. this is bloomberg. ♪ bloomberg. ♪ >> welcome from bloomberg's

headquarters in york i'm shery ahn. i'm haidi stroud-watts, asia's major markets have just open for trade, our top stories this hour, still nervous truly -- no relief in washington, they claim a deal is gross but sticking points tremaine and the government may shut down if funding is not agreed. vaccine has vaccine --

backing from fda advisers, the panel says the benefits outweigh the risks. and abandon ship, the virus followed hit shipping as well with a sharp rise in the number of vessels left drifting on the high seas, bloomberg has a special investigation. japan and south korea coming online, let's get to sophie with the latest. the yen is trading near a high, following the fastest lay in the decade, we are also waiting on the position on a bond buying area. plus local media reporting that pfizer is to request formal approval today from japan for the supply of 120 million vaccine doses, we will switch the board to check in on the open in seoul where we are watching for the ministry to release its monthly economic report to assess how rising

virus cases may affect the recovery, yesterday they were projecting growth of 2.3% for south korea next year after shrinking this year. the kospi opening on the upside by a 10th of 1%, the korean won just slightly under pressure trading about and 94 against the greenback. let's check out what is going on in sydney this morning as the city grapples with a new virus cluster. aussie stocks under pressure but still with a weekly gain and penciling in 7600 for the asx oil just a change about $48 a barrel, but still heading for a weekly advance and a gold trading near a one month high. testing the rise, it little bit of pressure from the globals seeing the ingredients for continued rally. a little change this morning after the benchmark hit a record high and brother speaking, pulling out the chart we have got -- a week out from christmas we are seeing a brought -- broadening breadth for global

stocks. we are seeing more than 80% of international shares rating averagee 200 day moving heading towards historical highs after the end of pretty -- has been a year that has accelerated change for better or worse, our next guest discusses what will trade over into next year. of opec ishares investment strategy joins us now from hong kong, to have you. let me throughout this chart to begin with taking a look at the yesterday,about 1.3% the channels up by -- up as well. the record high remaining elusive, it feels like we keep running into that ceiling of resistance when it comes to this chinese equity rally. do you think there is for room to run?

into 2021, iinly think the optimism around global equities is pretty consensus now, but i think the difference is in the positioning and you can see that when you look at foreign investors holding chinese equities and fixed income. we have been talking about this for a couple of years now, the need for investors to get more exposure towards chinese equities whether that is onshore or offshore and fixed income as well which has been a very strong theme for us. running very strongly at the moment, we have had a very strong rally so in terms of the short-term, we are not really too sure but certainly into next year the expectation for gdp growth and if you look at foreign investors positioning, it is still slightly underway.

yes, i expect that will continue into next year. haidi: that is interesting to me because all we talk about when it comes to the future of the --.-china relationship is when it comes to trade, diplomacy, the economy, and tech. you're saying because of that investors need to resign part of their portfolio to what is going to become pure china names. thomas: i think this is probably the first time since the gse where investors are looking for a new lay book for next year and i think we are seeing that in regards to the flow currently and that is a need to own things other than u.s. s&p 500 tech names. where do they actually look for growth? i think it is certainly asia and in places like china. i think the message is quite clear, we are not saying you need to get out of u.s. growth or u.s. tech or equities in

general, the message is you need to own both and because the positioning in chinese equities is much lower, that is where we think the trend will be into next year and beyond. what are the risks of volatility and how it can affect market levels? you look at chinese equities onshore, they are very much driven by retail investing, about 85% of that turnover is investing. the chinese equity market tends to be less correlated to global equities and tends to be driven more by monetary policy onshore. volatility can continue particularly in regards to geopolitical tensions between u.s. and china, you mentioned decoupling, we think that will continue particularly in the tech space. with a joe biden presidency, short-term volatility will be somewhat more muted than with a

trump presidency. yes, there will be volatility, but the expectation is the short-term volatility will be lower with a biden presidency. shery: let's talk about some other risks we could see into thousand 21 because we were , we are -- 2021 speaking with the former president -- fed president and he was saying that inflation might change, what are you seeing as a bigger risk heading into next year? thomas: i think for us that is one of the biggest risks in the market, you look at what is actually driving this merger hair and what continues to drive it higher is very much a liquidity driven bull market, zero interest rates, negative interest rates globally. the question is what can actually stop that and historically it has always come from a spike in inflation which can happen much quicker than the market expects.

going back to the 1970's that has been driven by a big spark in the price of oil, with a return to economic normalcy and with the continuation of rates being lower and a big fiscal push into next year, i can certainly see the case for inflation spiking quicker than the markets expecting. that is why we are recommending to have some kind of inflation hedge in investor portfolios. for us that is probably the number one. shery: what are those hedges you are recommending? beginningthink at the of the year around owning gold at the portfolio, at this 1880 is a good treasuryget exposure, inflation protection, and i think you can also do it through a sector allocation. we have been seeing more interest in commodities hedging for inflation through owning some oil and gas exposure.

i think those are probably the three main areas the investors can do it and the three main areas where we have been seeing flows protect against inflation. thomas star joining us out of hong kong, we are just getting an update from new south wales premier on this latest sydney cluster outbreak for covid-19 omma we have seen this outbreak of the coronavirus which potentially throws travel plans just ahead of christmas into disarray. the virus cluster has risen to 28 places, the premier morning there is a potential seating outside of the original beaches where of course we know in that area a quarter of a million people are being told to stay-at-home just days out from christmas. it is going to be difficult for people in the greater sydney area, they need to be higher --

on high alert according to the new south wales premier, they are saying she does not want to understate how serious this outbreak is. we will continue to monitor that, but we have already seen a response from the state in terms of visitors going into western australia needing to quarantine and test as well as visitors not being allowed to get into victoria if you are from the greater northern beaches area where we have seen that initial point about rick. let's get the ash point of outbreak. karina: microsoft is said to have been hacked as part of a suspected russian campaign that hit several u.s. government agencies as well. sources they the attack took advantage of the widespread use of software from a company called solar wind. they say hackers used multiple tools, backdoors, and mauer implants that allowed them to remain undetected for years. president trump has threatened to veto a $740 billion defense

spending bill risking a split within the republican ranks and testing their loyalty. that unhappy about add-ons strip legal protections of social media and says kino would quote, love the bill. the senate is expected to arrive in detail after it has -- passes both houses of congress. the treasury wants a water ash to water down president trump's order barring americans from investing in chinese companies with suspected links to beijing. they say they want to exclude chinese -- an executive order but is being met with opposition from the pentagon and state, the order also triggered the delisting of chinese companies from some u.s. exchanges. has urged people on the coast to move to higher ground as a major storm system strikes, the cyclone is bringing sustained winds of 250 kilometers per hour, torrential rain, and a storm surge and possibly -- of

16perly -- of popularly meters. the last cyclone was in 2016. 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. pine: goldman sachs to will tell us where to look for positives in next -- 2000.1. up next modernity covid-19 vaccine moves a big step closer to final approval, the fda could authorize it soon, details ahead. this is bloomberg. ♪

shery: a second covid chart has gotten backing, the panel voted 20-0 with one abstention saying the benefits of the vaccine outweighing any potential risks, the full fda could give its final ok in the coming hours.

let's get more from bloomberg health care reporter, is the okaying just a formality or should we be concerned from the allergic reactions we have seen from the pfizer vaccine? >> i think it is just a question of how soon, if it follows a pattern in the pfizer vaccine it will get a approval by tomorrow night if not earlier and i think it is likely to come soon because it is also a central -- the centers of disease control had a meeting on who should get the vaccine. i think it is a matter of teaching the language on the fact sheets with doctors and how to use it. in terms of the allergies, those have not been seen in the trials of this vaccine, it is possible to get allergic reactions as the vaccine goes out and used by millions, those have not been seen yet with moderna.

there were some with the pfizer vaccine in the u.s. and a couple in england. you have to remember that this vaccine in the u.s. is being rolled out very quickly, we have ,ne report of a severe reaction so you have to take that in context with just a handful of people and millions of people are getting it. that will be a one in a million thing and should not be a cause for concern. >> this at a time when things are getting worse in the u.s. death topping 100 a day in arizona, i think i've seen the highest level since about august. how critical is this rollout going to be and in the meantime, you still need to see going into christmas and the holidays the same measures being taken. nott is critical, but it is

going to garner the population because of the shortages in the amount of doses available, the initial doses both -- for both vaccines are going to health care providers and nursing a residents. just small percentages of the population that are at risk of getting the infection. so it is not going to protect the broader population for a while until they can produce mode doses -- more doses. shery: especially at a time where we are seeing u.s. cases topping 17 million, how widespread has the cases become and also the number of deaths across the u.s.? >> daily death tolls are at all-time highs right now for the pandemic, this is the worst of it right now in terms of deaths. i always say people should continue to keep taking regular precautions. the vaccine is not here yet for most people and you have to take precautions because the situation is bad right now.

haidi: our bloomberg health care reporter there with the latest on the vaccine and the bars, coming up the outlook for commodities. seest tax -- goldman sachs telltale signs of a structural bull market, we have more analysis next. this is bloomberg. ♪

commodities have all telltale signs of a super cycle are -- and are entering a structural bull market akin to the one seen in the early 2000, we asked where bitcoin fills -- fits into this commodity as well. >> if you overlay a chart of bitcoin on the price chart for copper, they look very similar. what do they have in common? they are both risk on growth proxies and i would argue that bitcoin is the retail inflation hedge. you look at gold, people like to

say it stole demand from gold, there is no evidence it has, gold is still a defensive asset. it has traded lockstep the way it should in this big rotation away from and defensive assets, that cyclical rotation. i don't think there is any gold -- gold and bitcoin can coexist, in terms of thinking about the run-up in bitcoin this year, remember what happened to iron ore, copper, they are behaving very similar. >> so you look at it as a risk on assets, doesn't have any correlation to things like the dollar, yields, or real yields? >> it used to, now it just has a correlation to copper which people are using for a proxy as the risk onto a global economic boom that is currently going on in places like china and potentially going on if you get

the vaccine to take hold in the western hemisphere. your acting much more like typical risk on asset than a defensive asset. >> let's get to copper more here because if you take a look at a 20 year chart, the run-up we have seen makes me think about the early 2000 where you have a super cycle driven by china, it is a different economy now so how do you -- what is copper moving to or can we see another super cycle? >> if you look at the market today, it looks very similar to what it did in 2000 and you have all the telltale signs of a super cycle, not only do you have metals prices reaching multiyear highs, oil piercing $50 a barrel this week, but you also have the dollar breaking multiyear trendlines since 2011 and you also have global reserves beginning to increase office surging global trade.

durable goods in the u.s. are up 15%, demand is up 15% year-over-year, trade is booming into ports like long beach from china, then you have the dollars of that trade going into reserves, that creates liquidity to create more credit and a multiplier off of it which then leads to a lower dollar, higher commodity prices, and then you start that virtuous cycle which drove prices so high during the 2000. all the evidence points to that positive feedback loop is turning again. >> do you think that is the case for all the main metals or is there one that is the best? year-to-date you mentioned iron ore, nickel as well in addition to copper, silver, which would you bet on for next year? >> copper, and if you go back to -- there are three reasons we want to be long commodities right now, we think you are

entering a structural bull market similar to what we saw in the 1970's or the 2000s. we think this will be more like the 70's, you have the structural investment, we called it the revenge of the old economy where the.com boom stalled all the capital from the economy, now it is all the thin stocks stealing capital. you have the same supply constraints but turbocharged because of the overlay and the negative over prices we saw earlier this year. capex is down 40% in the first half of this year and oil, the second reason is policy driven demand. that was goldman sachs global head of commodities. the investment bank appeared ready to boost bonuses by up to 20% for its trading division, we have the latest. bonuses have become tricky right now because you have record trading but at the same time, the outlook is so uncertain for

banks. >> yeah it is truly a sensitive issue for the industry, but it is also one where banks are looking out to see how they are handling things and people close to the matter have told bloomberg that goldman sachs is planning to boost bonuses and to boost them by about what he percent. these heftier paychecks follow a major rating windfall that most banks have experienced in the last three quarters. jump inted in a 39% goldman trading revenue and this has goldman trading division reclaiming its status. alsoat the bank are telling bloomberg the firm is likely paying the fixed income traders even bigger bonuses and this is in part out of concern that the star traders could be lured away by deep-pocketed hedge funds like ken griffin citadel or big funds owned by steve cohen that have already --

there have already been some reports the traders have already -- bonusesefore his have been handed out. haidi: how do these compare to other banks? we know banks throughout wall street really had stellar gains and we also know that j.p. morgan was clearly the leader of the pack. people are saying that j.p. --gan, chase are boasting boosting bonuses by about 20%, bank of america executives floated the idea last month of keeping the bonus pool at last year's level, no final decision has been made and we reported just yesterday that barclays was weighing boosting the bonus trade by about 10%, again, no final decisions. your quicks get check of latest's nest flash headlines this hour, a new report ahead of tesla's

inclusion in the s&p 500 warns a -- the move is reckless and the stock should be at least 70% lower than current levels. david traynor saw the move as unnecessary risks for investors and that the stoxx should be trading at around 170 dollars a share, a far try -- far cry from the current trading level. itsral motors is betting on $27 billion electric vehicle program, the question is, will it sell? due december with report showing electric vehicles are not just for the green geeks, the rollout will be one of the fastest evolutions ever for nep from the sketchpad -- from in ev. volkswagen has suffered another blow from its diesel scandal, it has been ruled that the aleutian tests broke eu rules. the world's biggest carmaker is

now facing damages over a scandal that is already -- has already cost of company $40 billion. the ruling is binding. plenty more to come, this is bloomberg. ♪

this is "daybreak: asia." i'm karina mitchell with first word headlines. moderna's covid mag teen the accent -- covid-19 vaccine has said a stage for a second jab to be sent in the u.s. the panel voted with one of the extension sang the benefits outweigh any potential risk and the full fda could give its final location in the coming days. the shot is based on the same research like pfizer and beyond tech which was cleared for emergency use last week. pfizer and u.s. regulators are revising rules for the company's

covid-19 vaccine after a series of rare alert deck -- allergic reaction. it shipped all 2.9 million doses the u.s. ordered. several states they will receive fewer doses than planned. california said -- set a fatality record. new york topped 100 deaths in whenever hours. arizona reported its highest death count since august. hong kong will allocate more than 800 million u.s. dollars to support the economy as it struggles to contain a new virus wave. bars, restaurants and educational outlets will receive the bulk of the money which may be rolled out next month. business is most affected by social distancing curves will be given top priority. hong kong had been showing signs of stability before the latest virus surge. a cluster of covid cases in sydney is threatening to disrupt christmas celebrations at the height of the holiday season. australia's largest city reported 11 new cases friday, bringing the total in three days to 28 after more than a month.

. without any community transmission. the cases on the city's northern beaches, a quarter of a million people in the affected area have been asked to stay home. 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. haidi: suspected russian cyberattacks struck a number of federal agencies including the u.s. nuclear weapon agencies, microsoft and at least three states. let's get the details from our reporter. how bad is this latest of element? who was affected? bruce: it seems pretty bad. that lots of government agencies, lots of companies have been hit. we have learned that among those hacked where the energy department and then national nuclear security administration. the national nuclear security administration maintain america's nuclear stockpiles.

that is about as bad as it can get. shery: radical infrastructure being targeted. what is the federal government doing about this? charge of agency in protecting against this is the cybersecurity and infrastructure sub security agency, which is part of homeland security. one problem right now is that the head of the agency was fired by trump a couple of weeks ago after he said that the election was secure. so he was forced out and two other top officials at the agency were forced out. which is not to say that there are not a lot of professional people at the agency. but the leadership is certainly in turmoil. shery: it looks like president trump has yet to publicly address the issue. but we do have president-elect biden coming out with a statement. yeah, it is a very

stark contrast to what we have seen from the president and president-elect. president trump has not yet said anything about this. which is not uncommon when it comes to things having to do with russia. president biden has issued a statement not only saying that the u.s. needs to defend against these attacks, but also needs to do more to punish and deter attacks, to be more on the offensive rather than playing defense. shery: that was bruce einhorn of bloomberg with the latest on the cyberattack in the u.s. of the lateste coronavirus case numbers confirmed from south korea. 1062 more coronavirus infections. this in the past one of our hours. of course, this also coming at a time when we have seen already a

few days of more than 1000 cases in south korea. and there are still about 2.5 social distancing restriction levels that will -- that we will continue watching as they strengthen the restrictions across the country. compare --dman sachs of eyster joins us to preview the boj's final policy decisions for the year. this is bloomberg. ♪

at howlet's get a look the markets are trading. the asia-pacific, sophie kamaruddin is in hong kong. back -- not much price action to speak of. sub mixed action here. sidney stocks are under pressure as a cluster go -- grows in the city. the biggest laggard on the asx 200, falling more than 40% after the drug developer said its stem cell therapy is not likely to meet targets in a trial for covid patients. . broadly speaking, despite the lackluster move we are seeing, the regional index is still set for a seventh weekly rise. let's flip up the board and check in on currencies. want to check in on cable which went through 136 overnight. holding above 135 right now. that is the best weekly gain since june. just hovering above the 1121 level. dollar short among the most crowded trades this month.

winston saying it is controlling the virus and more stimulus are achieved, the dollar may carve out a bottom after the first quarter. amid the ongoing dollar weakness yen, a march high. ahead of the boj decision. board, calls for the yen at 100. that is garnering more in wall street and japan. estimates that the yen could push toward 98. a level not seen since 2013. over at city, the chief currency strategist for japan saying 95 may be within reach for the yen, which may prompt authorities to rein in -- rain that in. shery: let's delve deeper into the bank of japan decision, wrapping up its final policy needed for the year. leaving its main policy levers unchanged. also extending an emergency loan program designed to buttress the recovery. what that means for the economy and the markets, we are joined by japan vice chair and chief equity strategist kathy matsui.

always great having you on. we have seen the latest echo -- vika numbers out of japan heading into the boj decision. trade not looking great. disappointing in november. inflation numbers, a little earlier, nowhere near the boj target. give us a health check of the japanese economy. kathy: sure. i think compared to what happened earlier this year when the pandemic broke in japan and globally, the economy of course entered a tailspin like many other countries around the world. i think we saw the economy, and with that corporate earnings, begin to bottom out in late summer and early autumn. of course, it is not a straight shot to the recovery path. there is a lot of industries, especially the service sectors, that are quite challenged by the most recent spike in covid-19 cases in japan, broadly speaking, we are predicting the

economy will grow pretty sharply in the fiscal 21 year that begins next april. our forecast is about 4% which is well above the consensus for the japanese economy. and in tandem with that, we are expecting global growth to top 6%. that should exceed expectations. while the recovery path is still pretty rocky in the beginning expect,as one would remember the cabinet is also administering a large-scale stimulus package which should be passed by the parliament early next year, which should be helpful in jumpstarting the economy for a real recovery in 21. shery: how effectively is at stimulus package being filtered into the right places of the japanese economy? kathy: that is a fair point. i think the main thrust or the core of the spending will of course be directed at the businesses and households that need the most support.

as i mentioned early, the service industries have been battered quite hard with the pandemic. there is frankly no clear end in sight for a lot of those industries. tourism related, restaurants, retail, etc. there is clearly going to be significant government support in the form of loans and grants to that area of the economy. not to mention a lot of households, especially in the lower income bands, single-parent household as well, is where the paint has been the most acute -- pain has been the most acute. most of the spending will hopefully go in the right places that is needed most in society right now. haidi: as we see consumer prices falling at the fastest pace in about a decade, was the pandemic really, you know, something close to a death for the reflation effort, or do you expect a rebound? kathy: i think it is no surprise to expect there will be some deflationary pressures as the

economy went into a downturn. as we expect, if the economy is bottoming out, we are assuming the vaccine will be distributed pretty efficiently globally during the course of 2021. and japan being part of that distribution effort, that we do expect price levels will overall in tandem with the rebound in the economy will start to gradually recover as well. that does not mean we get to the bank of japan's to percent cpi target anytime soon. but i think having cpi above the zero mark is very much in the cards as we enter next year. haidi: the boj lower for longer. banks, weobal central are not having any expectations that it will come anytime soon. we are also seeing the latest numbers showing money supply might continue to expand in japan. does this add to the extra supportive measures that could

see japanese stocks doing pretty well going into next year? kathy: we agree. we think the monetary and the fiscal policy backdrop for the market is actually quite market friendly. not only do we have extended or prolonged qe, but as we just discussed, quite significance amounts of fiscal spend on top of that. again, it is not to say the economy is back on its feet today. it will take several quarters for that spending to seep through. but if we think about how that translates into corporate profits, we are expecting 58% rebound in eps for topics of fiscal 21. that is assuming one of three young dollar. we expect another 9% growth in fiscal 22, assuming ¥100 to the dollar. with that v-shaped recovery and profits, we expect the market has already begun to outperform global markets since september. we think that performance trend will continue going into next

year. are topics is 5% of where we are today. if we get more profit surprises on the upside, there could be more upside to our market target as well. haidi: this is the last time we will be speaking to you in your current capacity. i would like to throw it ahead to the next year. people, maybe not market participants looking to close on 2020. what is your best investment idea or tip for 2021? kathy: ok. context, we have created a japan diversity leader basket. it is actually up on bloomberg with the ticker. and you can see it yourself. but we have identified some of the leading companies in japan on a whole range of gender diversity metrics. the. backbone of this research. over the long-term, japan is

still, in our opinion, not fully maximizing its population. and we think that as more winter -- more women enter the workforce which they have begun indo, they are still working part-time rules, not so many and full-time positions, and not as many leaders as japan really needs. we will see more and more companies thrive and we will see a lot of companies providing products and services to those women and those families to do well in addition. that would be my top idea for next year. shery: how has digitalization changed all of the things you've just said? has it helped in getting to that level of productivity, whether it is utilizing more women in the workforce as well? kathy: i think that is part of the story. of course it is not just digitalization that needs to moree to encourage increased female labor participation. is clearly, digitalization

key for many aspects of japanese society that frankly remains overly analog in nature. a lot of prophecies, not just on the government, but the private sector, still need to be made much more efficient with the use of not just digitalization, but automation, ai, and all of the technologies that i think japan with facing a demographic tsunami with 40% of its workforce population shrinking by 2055. inperately needs to invest these areas of technology and digitalization that are going to be desperately needed as the country is challenged with low productivity levels. we have seen that investment begun to pick up. i think suga is intent on using the digital agency he has established to move us in the right direction. it will take time. but i'm optimistic. goldman sachs japan vice chair and chief japan equity strategist kathy matsui, wonderful to have you as always. the pandemic has hit industries

and sectors across the world, including on the high seas. bloomberg has a report coming up. this is bloomberg. ♪

covid-19 has brought havoc everywhere. including on the high seas. the number of cargo ships and other vessels being abandoned offshore has jumped during the pandemic, often with crew left

nowhere to go home as employers fill the financial crunch of covid-19. our reporter has more on this. most would find it shocking that entire ships, tankers, huge cargo ships, and their crew would be abandoned by shipowners. but it has happened. >> that's right. it really is mind-boggling to think that an owner can dump a shrimp that is longer than a football field. but it happens often. this year, more than 1000 seafarers along with her vessels have been abandoned, imports like singapore and dubai with no food, no water, or a way to get home. these cases have nearly doubled from last year because more shipowners have faced financial dispatch -- stressed during the pandemic. some shipowners do this systematically and even repeatedly. that is because laws and authorities that oversee international shipping are so fragmented, that there is few consequences for them to do this. it is the ports and international union, they are

left out -- left to sort out how to deal with the crew and these gigantic ships so that they don't cause an environment thomas. shery: we see that abandoned ships can be a huge problem. the explosion in beirut that killed more than 200 people that was caused by cargo from an abandoned ship. >> that's right. the more than 2000 tons of ammonium nitrate that cause that explosion, that came from an abandoned ship. it is a case in some ways, the ship had not been properly maintained, port authorities detained it, the russian owner did not have money for repairs. he walked away from the crew and the dangerous cargo. the port of beirut, like most ports, did not know what to do with a dangerous cargo so they sorted in a warehouse, which caught on fire and caused the blast. that is the danger of this practice. this year, we had a spanish ship abandoned in the philippines that carried butane, a combustible gas pair those who

don't carry dangerous cargo, they still pose an environmental risk because they can block see traffic. -- sea traffic. haidi: there is the human story as well. ridiculous, seems the idea that your employer goes bankrupt and you get locked up in your office for the foreseeable future. >> i know. it is actually a real tragedy when it comes to ship abandonment. you have the seafarers who are mostly guys from poor countries who have not been paid their salaries, living on ships sometimes for years at a time. many of them choose not to leave the ship until a port sells the vessel and they can recover their wages. some can't go home at all because port authorities require a small number of crew to stay with their ships because it is too dangerous to leave a gigantic vessel unmanned. there is a case in the story and lebanon where the crew have been stuck in the port of beirut since may. they can't go home. they are not getting paid. and they are running out of food and supplies this weekend.

shery: global business senior reporter there. we have an alert on the bloomberg. we have some lines crossing from microsoft. commenting on the statement saying that the company investigations are anoing, but that it found isolated solar wind binaries and saying there was no sign of production or customer systems had been accessed. microsoft had been monitoring what they called a dynamic thread environment surrounding the discovery of a cyberattack that included compromised binaries related to the solarwinds. we don't have more details but we have also heard the nuclear weapons agency in the u.s. and at least three states have been targeted as well. let's turn to sophie in hong kong for stocks to watch as we head to the china open. sophie: you are watching chinese property players, this after

they recommended buying quality names on a potential first quarter rebound. with the market having priced in credit tightening. keeping an eye on shares in hong kong after the theater chain operator signed a deal with its chinese partner to expand its network of 700 theaters on the mainland. this is in focus after the chinese property defined its conglomerate and said it would've make a boundary payment due on december 21. keeping an eye on this as the carmaker received court approvals to continue this is operations during their restructuring process. the structuring, that was decided on after the company defaulted on its debts last month. partner in the bmw's china. keep an eye on that. haidi: the annual hong kong international races took place last weekend. year, very different this due to the latest wave of covid cases in the city. adrian wong takes a look. home to the annual

hong kong international races. what is at stake? a grand prize of almost 100 million hong kong dollars. that is about $12 million u.s. it is left the most anticipated events in the asia sports calendar. this year, covid-19 has quite literally changed the game. what you see behind me, the racecourses pretty much empty. havee past few years, they managed to attracted tens of thousands of people. back in 2016, they had a record attendance of over 100,000 hopeful fans and gamblers, all gathered here. they did have social distancing plans in place and were hoping to welcome some spectators. with the latest wave of coronavirus cases in hong kong, those plans were eventually scrapped. on the business front, turn over to the club fell more than 10% according to the latest annual results. racing turnover also fell just over 3% compared to the previous

year. another key difference this year is all of the jockeys and horses flying in had to be inside of a quarantined bubble. they had to go through multiple covid tests, they had to be kept separate from other locals. two.leggett and the whole 2020 event is setting some new but perhaps not welcome standards. that was at the races in hong kong. morehead on the state of racing amid the pandemic, when we speak exclusively to the hong kong jockey club ceo later. markets, on bloomberg the outlook for aviation in 2021 is the pandemic devastates the industry. stephen meehan joins us exclusively later. haidi: here's how markets are looking now. the nikkei is down .1% after

gaining ground for the past two sessions. we have seen significant strength in the japanese yen which rose to the strongest and more than nine months. under pressure right now. the kospi gaining ground again for a third session. that is coming at a time when the korean won is under a little bit of pressure. we are headed toward the policy decision in japan. do watch out for that. the asx 200 down .7%. this really falling from the highest level since february as well. we have to put the losses in context. while the aussie dollar is under pressure against the u.s. dollar coming at a time when we continue to see those infections around sydney's northern beaches and perhaps more restrictions because of covid. markets coverage continues as we look ahead to the start of trading in hong kong, shanghai, and shenzhen. standby for "bloomberg markets: china open." this is bloomberg. ♪

>> it is 9:00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." i'm tom mackenzie. our top stories today. stimulus talks roll-on in washington but no relief yet. although the white house claims a deal is close. sticking points remain in the government may shut down if funding is not agreed. moderna's