paul: good morning, i'm paul allen in sydney. we are counting down to asia's major market opens. shery: i'm shery ahn in new york. u.s. lawmakers cleared the last significant obstacle to a new relief deal. mitch mcconnell confirmed the agreement being reached, meaning the $900 billion draft can move to a vote. the u.k. faces christmas chaos with london under tough new

virus restrictions and europe closing the door to british travelers and brags it is just days away with no deal in sight. -- brexit is just days away with no deal insight. beijing says washington has abused export controls to suppress foreign business. we have just opened up for trade for the new week in australia. to sophie in hong kong for a check on what's going on. sophie. sophie: we have a change slightly to the upside after its worst session as this sydney outbreak weighed on sentiment. at the index managed a weekly gain and they don't see the pickup and virus cases derailing the performance of aussie stocks

next year. the aussie dollar holding above pressure, falling this morning. mightrains of the virus hamper the efficacy of vaccines and force the lockdown to be extended. let's check on what is going on in asia this morning. a little movement with the yen ivghtly weaker as markets stimulus talks in the u.s. look at thes stimulus talks in the u.s. the pound very much in focus above the 134 mark. given there is still a gulf between the u.k. and eu when it comes to brexit talks this morning, gaining a little ground very much in focus. paul: the new relief deal in the u.s. is heading to a vote.

lawmakers cleared the last remaining hurdles on a draft bill worth about $900 billion. our deputy managing editor in washington has the latest. we are hearing leaders reached a tentative accord. what do you know? even since we spoke a few moments ago, mitch mcconnell said we had agreed and called it a bipartisan breakthrough after many months of talking. it looks like from the house, they will not vote on the deal tonight. they will hold it to vote on monday and will press ahead with another continuing resolution to keep the government open. nevertheless, it does seem like the votes will come on monday this 900 billion dollar bill with extended jobless aid and money for schools and vaccine distributional and all kinds of other things is finally going

ahead. shery: what is the timeline looking like? the house not voting tonight. we heard from speaker pelosi the deal will take some time to write up. what do we know on how fast this could progress and where are we going to see the biggest changes? some of the things that have been lost along the way include the liability protections for companies that mitch mcconnell wanted for a long time and the state and local aid democrats pushed for for several months is basically gone. up andt is being written that's going to take some time. it is a massive bill with several hundred pages and some congressional aid -- congressional aides and lawmakers will spend the night reading through it. it will go to the house first for passage and we think that's going to be monday, may be

monday, maybe monday afternoon, then it would go to the senate before being taken up by president donald trump. we heard from some of trump's allies in the senate that they believe he would sign the bill. it's being said president trump would have liked to have seen higher stimulus checks, bigger stimulus checks but it does seem like the $600 a week that was talked about a wild back is going to be the number in the final bill. shery: it is significantly finally got this agreement now after months of haggling. you are looking at live pictures of senator schumer speaking in congress. tell us about the other issue that became a sticking point during the end part of the negotiation -- the fed's emergency lending powers. we heard from ben bernanke, issuing a rare public warning on the need to keep the fed lending facilities for future crises

intact. was a very interesting and dramatic turn of events. sort of using the stimulus bill theake an end run to make -- to limit the fed's powers going forward. democrats rightly or wrongly saw this as an attempt to hamstring the incoming biden administration and to make it difficult to move with some flexibility and i think the agreement that was reached late limits on put some what would be rolled back in this bill and senator mitt romney suggested there is an effort to reform the fed's emergency lending authority. maybe it is something that could be taken up next year.

one thing we did just hear from chuck schumer on the senate floor as he believes the stimulus bill gives some momentum to the biden administration coming in and you could argue may republicans sort but obviously the sense of helping the american people may have one out. we do expect those votes tomorrow. is it possible something could come up in the meantime? it seems less likely now that senator mcconnell has said the work is all done. this relief package coming at a time when we are seeing growing infections in the united states. the cdc has said we finally have than 500,000 covid-19 vaccine shots having been administered here and we did get the moderna vaccine getting the green light from u.s. regulators.

was turned to ian fisher in new york for the latest on the virus. moderna.t started with what do we know about how soon we could see these vaccines administered and how many are in reserve right now? vaccinationd of the moderna.s. believes the shots could begin getting started as early as tomorrow. you could see 6 million doses around the nation starting today. i think monday might be optimistic forgetting it into people's arms but the pfizer vaccine move very quickly. we have had news of a fast-moving mutant strain in the

united kingdom. more infectious and european countries closing borders. what's the u.s. response been to this? ian: the u.s. response has been nothing. in terms of the united states in general, unlike your european -- the topat had admin if asian -- top administration official says they don't need to impose a travel restrictions in stark contrast to the rest of europe which has cut off mostly passenger travel from the u.k., france, germany, bulgaria, .weden, the netherlands andrew cuomo, the governor of new york, which is where the virus hit the strongest last is a giganticis mistake and begged the

administration to set some kind of rules, whether it is testing or curbs on travel. he said basically he does not want a repeat of what happened in the springtime when everyone is looking at china and the virus has already moved over to europe, italy specifically, and was coming through jfk and newark airport in new york. paul: thanks very much. we will have more perspective on the pandemic in a moment. deborah fuller is an expert on vaccines and infectious diseases and recently developed a second generation vaccine for covid-19 and will join us later this hour. for now, let's turn to karina mitchell and get a look at first word headlines. karina: china is threatening countermeasures against u.s. moves to blacklist companies as read -- as tensions threaten to escalate in the final weeks of the trump presidency. the ministry of commerce says they have abused controls with

chinese chipmakers among the latest to face potential punishment. opec and its allies continue to debate oil strategy with iran and russia to hold talks monday. lederman -- leading members of the cartel and tend to react faster to changes and take a hands-on approach with an accelerated schedule of monthly meetings. saudi arabia says producers aim to drive the markets. the next meeting is set for january 4. the death toll from last week's powerful storm in fiji has risen to four, with police one person still reported missing. the cyclone spared the capital but it major tourist hub caused widespread damage elsewhere. almost 8000 people are still in rescue centers with relief aid being flown in from australia. fiji with winds gusting 345 kilometers

an hour. and all eyes on tesla -- elon musk thinking about converting part of its balance sheet into bitcoin. is tempted by bitcoins tripling in value and ask if such large transactions are possible. michael seiler said they are and do shareholders a $100 billion favor. 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. just want to update you on some of the early action on the asx -- travel stocks, qantas off almost 5% at the moment. web jet off more than 6%. covid-19 outbreak of in sydney on the northern beaches. a press conference at the top of

the hour on the latest numbers but states and territories around australia have shut the doors to residents of sydney, qantas saying several customers canceled their bookings between sydney and melbourne, one of the busiest routes in the world before the pandemic. we see qantas shares off almost 5% right now. we continue to see the latest headlines when it comes to the u.s. stimulus package. now the votes on the pandemic relief package are set for monday. we were expecting it to be as soon as this evening but it is being set for monday and the house majority leader, steny hoyer announcing the house will 6:32 consider a one-day stopgap. they are trying to attach the stimulus package to the funding bill of $1.4 trillion and a government shutdown is on the

line and they are going to be voting and meeting at 6:30 tonight to consider that stopgap as they had to the vote on monday. young up, we ask olga goal why she favors asian currencies and where she sees value in 2021. this is bloomberg. ♪

paul: it has been a one-way street for the u.s. dollar since the major market turning point back in march. that direction is down. our next guest admits it's the popular trade but has theories on how dollar weakness will manifest. today, we are seeing a bit of dollar stability against the yen, but that trendline does appear to be down.

how do you see this playing out going forward? olga: great to be back on the show, paul. indeed, it has maintained a view on the u.s. dollar which has become consensus. , ifthe recent development anything, for the -- support that argument. but where i am different from the mainstream is where this dollar weakness will play out. i believe the fundamental anders will differentiate favor asian currencies. market hear many participants looking at currencies that appear cheap like the turkish lira. i maintain those are value traps. that mainly because i do see how

these countries have dealt with is bycumulation of debt keeping the monetary policy loose and lowers the cost of debt but the collateral damage will be there currencies. hand, the way i would look at other currencies across em with respect to given realrrencies yields are deeply negative and we see slower recovering output, i would be underweight those currencies as well. with respect to debt, you can find good yields in china at the moment. wonder how long policymakers are going to tolerate the strength. what are your thoughts? a point of view

on the chinese yuan. factors. a number of we've seen significant strength and further strength could be moderated. as you rightly point out, even if we see the growth in china slowing, we are stuck in the order of 5%, which compares to may be slightly more in the u.s. and even less so in europe. the chinese yuan is in a good position as well as the real rate differential. continuede the inflows in the debt and equity markets in the bank of england inclusion. shery: this chart on the bloomberg showing the chinese 10 year yield premium over u.s. treasuries at around record highs, but as paul was mentioning, how long will chinese policymakers tolerate a stronger yuan when you have a

stronger yuan hitting the exports? how much of a conundrum is the pboc in right now given that they want to control financial risk? good point. a over the next few months, we may see continued support for the chinese currency. we coulde risks envision materializing at some point is continued escalation and geopolitical tension between the u.s. and china. this could potentially limit the extent of further strength, but as long as we have those two factors, continued strength of the current account sent continued portfolio inflows, ultimately, that would determine the exchange rate. there is some potential intervention but i expect chinese authorities will continue as a currency fluctuates and move with market forces. seeing reale

inflows into tight assets which assets.thai this coming at a time when on wednesday this week, we are getting the tie central-bank thai central banks decisions. where do you stand there? despite very strong currency performances this year, in thailand, we have seen the continued appreciation of the thai baht growing. that has prompted the u.s. treasury to place thailand on its watch list of potential currency manipulator's. if anything, i would expect some of those interventions to moderate because of that and

given there will be inflows into thailand. all of those factors will continue to support the currency and they would have to just live at that reality, so i continue to remain positive on the thai baht. shery: great to have your thoughts. thank you. coming up, china is bowing to maintain economic stability as the u.s. blacklists more mainland companies. we will have the details next. this is bloomberg. ♪

body: china's top planning is vowing to prevent risks in 2021 while boosting internal demand to create a robust domestic market. tom mackenzie joins us from beijing with more on this.

if -- it used to be all about the economic recovery from covid-19. has the tone changed here? tom: it has. there has been a marginal but important shift in tone and language from officials. one of the key questions for economists and investors leading up to 2021 for china is to what extent are officials prepared to remove some of the support they have had in terms of monetary and fiscal policy that kicked in early this year as covid took its toll on the chinese economy. now that the economy is recovering on the virus is all but wiped out in china, we got a bit more detail over the weekend. senior officials meeting at the central economic work conference, an annual meeting, they said monetary policy for 2021 would be reasonable and fiscal plans would be sustainable. that is a change in language from last year and suggests they

will start to moderate this support even if they don't do a radical switch in terms of that support. no quick reversal, but they will gradually remove some of the easing around monetary policy and fiscal report bash fiscal support we saw. the economy has improved but not yet solid. they also said around some of these debt issues, we have had some major and high-profile defaults and said they would use our cat-oriented edgers to sanage corporate debt default in china. -- we will get more details and more targets in march at the nationals -- national people's congress but they are preparing to remove, at least gradually, some of the support. u.s. has blacklisted more chinese companies,

including one of the country's top chipmakers. where is this heading? tom: this is the biggest chinese chipmaker, one of the best hopes for beijing to build out its own indigenous semiconductor industry and become less reliant on imports of chips from the u.s. they commented on the fact that they have been put on this lack list and said in the short-term, business and finances will not face a major impact but, and this is the crucial part, longer-term, particularly research and development in new innovations and around these very important 10 nanometer chips, that will have a major impact on network. that's a can turn -- a concern for smic. 60 u.s. has blacklisted companies and they are one and it will make it more difficult for china to supply these companies with software and hardware. tom mackenzie there in

beijing. coming up next, as the u.k. rattles a new mutant strange of coronavirus, we will talk to deborah fuller, washington university professor of microbiology, joining us next. this is bloomberg. ♪

paul: a little bit of weakness in the first 30 minutes of trading. mark richt -- markets in tokyo open at the top. let's go to sophie. stocks down a third of a percent extending the friday the -- into sydney as outbreak widens. energy stocks under pressure. these are oil prices moving to the downside.

let's check and on nikkei futures ahead of the cash open in tokyo. lower nikkei futures while the yen is easing some of its earlier drop. the pressure weighed by a double whammy. very much in focus keeping an eye on u.s. futures. earlier opening higher in the asia session. helen risk and at deutsche bank with the creepy upside for the greenback. there are a lot of factors to consider here. shery: especially on those u.s. stimulus talks. we are expecting nancy pelosi to address the public in a few minutes. let's turn to karina mitchell for first word headlines.

>> lawmakers have agreed to the terms of a $900 billion relief bill with a compromise of a federal reserve emergency lending program which clears the way for a vote on the plan to help the american economy to to weather the storm. business asg to they standout obstacle. any deal that does not satisfy the expectations of europe. the u.k. is facing chaos with brexit 10 days away. and mainland europe closing its doors. france and germany have suspended inbound travel from

the u.k.. more than 16 million britons must now stay home as tighter restrictions are imposed. sydney is tightening virus restrictions there. social gatherings are being curbed until the 23rd with the majority of new cases linked to the northern beaches of the city . partial gatherings are limited to 10 people while three states are imposing border restrictions ahead of christmas celebrations. >> a closer look for a spread of the virus and vaccination experts. professor of microbiology at the university of washington as she joins us from seattle. thank you for joining us today.

the stakes are pretty high. there is a lot of optimism that this will be the solution to all of 2020 desk about problems. i wonder how soon we will feel the effect of the vaccine when it comes to lowering the infection rate given that we don't really have more information about whether the shots will prevent transmission. >> the good news is we have vaccines at a very high level of efficacy. greater than 90%. when you introduce a highly effective vaccine into the population it can dramatically reduce and eliminate that infectious disease. the first question is how long will it take us to get to a safer place where we can go back to life as normal, and that depends on how quickly we can

get the vaccine to achieve herd immunity in the population. depend on a lot of variables. the next thing we have to look to is distribution and getting people to take the vaccine. pandemichave this until 2025 without a vaccine. it depends on how any people are taking it. if 40% of the people might take it may be we will get back to normal by next year. the hope is that we will get closer to 60% of the people to take it. majority of people have access by april, then we might see things get back to normal as early as may.

it really depends on us. and how quickly we want get back normal. paul: we have heard of a new strain what do we know it does it affect efficacy? >> all of that depends on the fact that the virus does not undergo mutation that would allow it to evade vaccine-induced immunity. but we do know is that first of all, viruses mutate all the time. every time they mutate -- the majority of the new variance die out, but now and then you get a mutation that could create a .ifferent property in the virus

they are seeing a new mutation that may have gained greater capability. the next question to ask is does that new virus increase serious disease? so far they don't have any evidence that it causes an uptick in personalization, i don't think that the new virus is causing an increase in severity and disease. they are testing that now. based on the mutations we have seen the expectation is that the should not impact ability of these vaccines to protect against it. we have seen other mutations emerge and we have a number of different mutations that have come up with this coronavirus.

for all of these vaccines, they tested them and today we have not found a variant that has been able to evade the vaccine. shery: who is next thing how soon can they get there? vaccines are the quickest to design and produce. vaccines are of going to be the adenovirus-based vaccines come the ones from astrazeneca and j&j. these are very close and will likely be looking to get emergency use authorization. it's important that we have as many as possible. based on the data we have seen, they all look really promising and are giving really good

immune responses. the more vaccines that we have, to thecker we can get 60% of the people getting a vaccine and getting to that level of herd immunity. paul: the speed of this work has been breathtaking and some of the research has been groundbreaking. what are the implications of the work that has been done for preventing and avoiding future pandemics? important point. all of these platforms have been in development for over 30 years with ni toward eventually becoming the vaccines of choice for rapid response to future pandemic. of itere at the cusp becoming more commonplace when covid-19 came out, so that helped accelerate the

development, so the impression we get is that they were suddenly invented, but they have been around for a while, and we have a lot of knowledge about how they would function and how they could be very useful in a pandemic. one of the things that i want to point out that is important is mutants ofbout new the virus. one could emerge. particularthese vaccines, these plug and play vaccines can be rapidly updated .o meet any new emerging virus every year we get the influenza vaccine, but it takes a long time to update. with these new vaccines, it would really only take weeks to update and manufacture a new one to match the new emerging virus.

shery: what should the public be aware of as we await those vaccines to be available to all of us? >> i think at the public needs to be aware that there is a light at the end of the tunnel. in the interim we need to maintain our diligence in social distancing and masking at all of the non-medical procedures to slow transmission. we can see more virus mutations as well. the light at the end of the tunnel is coming. as i mentioned it could be months before we can get to the point that life could be back to normal. even after you take a vaccine, it is really important as you continue to wear your mask to maintain protection among those

who have not had a chance to get the vaccine yet. more ony we will have the pandemic fallout. a wide range of sectors including retail, fashion, textiles, apparel, education. let's get to breaking news. lockheed martin intends to by aerojet for $56 per share in cash. that's a healthy premium. aerojet is one of the top suppliers of propulsion systems. per share in cash. confirmation expected to be reduced to 51 per share. the company making that

announcement in a statement, the deal expected to close in the second half of 2021. stay with us.

karina: u.s. lawmakers are said to be ready to endorse almost $2 billion to remove wireless

equipment from huawei and ppe from american carriers. further 2.3 billion dollars will be set aside for emergency relief for low income users. households would receive $50 per month. is reportedly ready to hand over part of his aunt group -- ant group to the chinese government to salvage his reputation with the failed ipo. he had rare talks with the regulators thing they can take control of any part of the amt platform if necessary. he finds himself going .ead-to-head with the apple is suspending new orders -- taiwan -- the

iphone maker in india. told bloomberg the rapid hiring and expansion policies are to blame. investors are watching tesla ahead of its debut on the s&p 500 later today. part of the balance sheet into bitcoins. tripling in value this year. >> those tweets by the ceo of tesla, elon musk, touched off a firestorm of pakula -- of speculation. widely covered by news organizations including forbes theu.s. news, as well as

many social media sites dedicated to bitcoin. tweeted out that he was thinking of converting large transactions of tesla's balance sheet to bitcoin. of microstrategy and a big advocate of bitcoin hat, if you want to do your investors a $100 billion favor, convert it to bitcoin. this could end up being a trillion dollar favor. if you look at this bloomberg terminal shot of bitcoin, the most recent rally up above 20,000, headed toward 24,000. it's early moves two years ago.

many are saying that the bitcoin rally right now is unstoppable. ditto the net worth of elon musk. his fortunes have risen with tesla and he is a billionaire has become one of the richest in the world. shery: talking about the value, we have seen tesla -- before joining the s&p 500. what's the implication of that huge jump in tesla stock? >> we had the moves really doubling down on tesla stock in anticipation of the s&p 500 which typically creates a situation where everyone not invested in tesla on the institutional side of wall street now has to.

-- many believe it will continue to rise higher. nothing like success to bring more success. are there drawbacks to the s&p? there are some market watchers that believe the volatility over the past two years could bring newfound volatility to the s&p along with regular market 2021.lities expected in shery: if you are away from a screen you can find the day's biggest newsmakers on bloomberg radio. plenty more ahead.

stay with us. ♪

shery: less than 10 minutes away from the open in south korea. sophia? >> the industry watchdog recommending that lenders cut dividends by seven percentage

points next year. keeping an eye on softbank which will reportedly file its first raisemonday, seeking to 600 million u.s. dollars. olympic on the radar as well. they plan to cut 950 jobs to leastover 40 with at three years experience. the review of the pfizer vaccine. watch with a vaccine trial to begin as early as january. paul: foreign investors may at last be returning to stocks in japan saying equities in tokyo represent a unique opportunity. a wire phone is returning to the japan -- why our phone makers returning to the stock market now?

can of the first is profit. top-performing japan stock fund. expect the profit growth to outpace that of the u.s.. they also believe the tokyo withics is a trade deal additional reasons to for japan exposure. the topic trading at 18 times its forward earnings. much lower than the s&p 500. 225 is still 31% below its peak. there are few major markets out there that are so far below their record highs. shery: are investors really

understanding the japanese market as opposed to the japanese economy in the country? littlee is a misconception about japan. that is part of the reason why -- they're coming to the economic growth national debt and aging population as reasons. they argue that -- a distinguished japan as a country and as a market. a growing proportion of japan and japanese companies profits come from outside japan, and especially from china. japan has a lot of multinational companies. that is something investors should bear in mind.

shery: we are getting the trade data for the first 20 days of this month. we are seeing that the daily average exports rose 4.5% year on year for the first 20 days of september. falling.re perhaps showing some stalling demand when it comes to that domestic feature in south korea. 26.4% year on year. exports to china are falling. year.ear on it seems that the number we need to pay attention to year on .ear, another month of recovery following that november rise in exports.

paul: we do have soul opening at the top of the hour. they are in modestly positive territory. we are flat at the moment and i have seen our travel stocks taking a bit of a hit today. the covid cluster continues to spread on sydney's northern beaches. at the moment we have aussie stocks looking kind of flat. keep an eye on the currencies for you as well. 75.88.sie dollar is will discuss, we china as economy. we will be joined by the head of

asia economics. before that we will have the .atest market outlook he says fiscal relief cannot come soon enough. this is bloomberg. ♪

shery: welcome to bloomberg daybreak: asia. paul: i am paul allen in sydney. our top stories this hour, u.s. lawmakers cleared the last .bstacle mitch mcconnell confirms that agreement has been reached. the u.k. faces christmas chaos with london under tough new

virus restrictions in europe closing the door to british travelers and brexit just days away with no deal insight. china threatens to head back against the u.s. blacklisting of mainland companies. >> japan and south korea coming online. let's get straight to the market action. after eight two week gain, will likely bring us japan ask about official budget for 2021. if the u.s. stimulus deal is passed that will drive u.s. deals higher and keeping an eye on stock prices this morning with shares gaining more than 1%. mid reports that they are likely to filed their first one this monday.

the pharma company says it will start moderna vaccine trials likely in january. just a look at what is going on with china right there. came out stimulus talks ongoing. speaker pelosi: putting money in the pockets of the american people which we do. our third purpose to honor our heroes was not fully appreciated by our republican colleagues, so our support for state and local government, while significant in this legislation requires that more be done. we consider this a first step and again, more needs to be done . we are excited that that will be -harrisng under the biden

administration about 700 hours from now. what i'm excited about in this it is the democratic difference, what it does for america's working families. as we see food lines all over the country, our legislation that had the initiative for food, nutrition, seniors as well as america ask working families, maybeeventual assistance 15 million children in america are food insecure. of foodest percentage insecure people are in the state of kentucky, nonetheless the food and nutrition piece of it has always been central to our democratic proposal.

with the millions on the verge of exemption, we have rental moratorium on a the biden administration. rental assistance, earned income tax credit for america ask about working poor families. assistance for community development and financial institutions to help small business, minority owned business. participating in a way. they don't have financial relationships. sometimes they are overlooked but that is central to what our legislation has done. very important, especially in a time of the pandemic when

children cannot actually go to school and therefore their parents cannot go to work. childcare. somany issues that are essential to the kitchen table needs of america's working families. that has always been my focus and that is the democratic difference between what we have succeeded in doing and what was not present in any way in any bill that the other side put forward in the senate. pleased and the investment in the transportation system and what that means to our economy. we are pres bipartisan support -- we are very pleased at bipartisan support. a tax credit. some of these things just made

it in later this evening which is why it is taking us longer. surprisedy proud that billing is a part of this. achieveg that we didn't with the money that was left over from the cares act, we toted to have flexibility .elp with revenue loss republican and democratic governors alike supported that. we did get an extension of one unfortunately with the spread of the virus, they will have those kinds of expenses. case, whether it is ,ducation or transportation what took so long?

what took so long is we could not get our republican colleagues to crush the virus. i couldn't understand it? by with a not want to invest in the science that told us -- why would they not want to invest in the science that was so important. , theye had the heroes act said we need a light touch on your line which on testing. 53% oftake out everything that are for -- that referred to minority communities . communities of color were so hard-hit. we see why, they didn't believe in the science, but they did believe in herd immunity. was why not -- that nothing could come from that first ville pillar crush the

virus. for these and other reasons we are on another path now. i'm proud of the legislation we need to do more. but what gives us hope is the vaccine, and we have to make equitablyable to distribute it and i encourage everyone to be vaccinated, and that -- and what gives me hope is that in 700 hours, joe biden will be president of the united states or bring his values and commitment to america's working families as we prepare for additional legislation. that i'm pleased to welcome our distinguished democratic leader of the senate, to praise him for his masterful work this evening to take us from a place where american working families were shortchanged and left out to dry except for his brilliance

in getting the job done for us. i welcome leader schumer to the podium. thank you, speaker pelosi and thank you for your steadfastness. while this bill is far from , nor is it a bill that we would pass, it is a strong shot in the arm to help american families to weather the storm. with a 20 million people who would lose unemployment benefits the day after christmas, help is on the way. to the small business owners who were worried that their small business would go under, help is on the way. to families struggling with less money, direct payments mean that help is on the way. to those who might have been evicted from their homes if they

didn't have a job, help is on the way. to those who need food because they have no money in the pandemic, help is on the way, and to all americans who want to make sure that the vaccine is distributed freely, fairly, and quickly, help is on the way. this bill is not everything we wanted. friends stood in the way of so much, but it is a strong shot in the arm to get things going. we know president trump has made the economy a mess. isknow that president biden entering his presidency in an economic default caused by president trump. this bi.l helped him -- this bill helps him begin to get out

of that hole. it is $900 million. the second largest stimulus amount that has ever gone into the economy. the first thing is the cares withwhich we negotiated secretary mnuchin. this is so deep and so long that we need more. this is the first step, this is an emergency. we need a second bill to continue dealing with the emergency and to start stimulating the economy. int will be job numbe rone -- job number one in the new biden administration. we will push like anything to get a bigger and stronger bill. bill, it is a good not the end of the story.

anyone who thinks this is enough does not know what is going on look into, does not the eyes of a small business owner losing his business. i'm proud of the mass transit and the save our stages provisions. when it comes to state and local, even though republicans were relentless against it, we found other ways to aid our states. municipalities will get some of the aid that they need, but the republican relentlessness against state aid is befuddling. different when someone who works for the local government loses his job or someone from a small business? they are all for helping small businesses and so are we. they employ people.

what is the distance -- difference between that and state and local government where people are also losing their jobs and cannot feed their families. ideology gets in the way. and bill gives us hope confidence that we can do more. we must do more. in january, back that will be job number one. shery: we have been listening to the democratic leader of the senate chuck schumer. we just heard from nancy pelosi as well. they were detailing what they could of the $900 million stimulus bill -- $900 billion stimulus bill. speaker pelosi emphasizing there were only 700 hours left until biden is in. this is what they achieved so far but there will be more. also, billions to many smaller businesses. to individualsck

coming in at $600 per adult and child. let's take a look at how this is affecting markets. >> we are seeing swings for u.s. futures as we heard from pelosi and schumer. the u.s. dollar is heading higher. see the u.s.sts yield not moving by much. a mixed bagdo have as the nikkei pushes higher. -- macy the government push out a third cash handout next month. in sydney, easing some of the earlier drop being waited by energy stocks. our b.i. pushing to that $30

level. travel release falling on that sydney outbreak, causing markets to question how resilient risk appetite will be going into 2021. paul: let's bring in our next guest, stephen ennis. of the just heard passage of that covid relief bill. to what degree has this been priced in? how much higher can they go? >> i agree with you, paul. it's baked in. i think we may even see the market shifting to a day-late, dollar short mode. the underlying thing here is stimulus will allow the market to float more comfortably through the air pockets that might pop up.

ultimately, georgia is on everybody's mind. right nowoliticking for that georgia runoff where it really comes down to where the bulk of the vote goes. in a democratic when we can anticipate more stimulus coming down the pike earlier than expected. paul: a lot of things go the other way. they could happen if georgia ends up in the hands of the republican. fiscal stimulus that we need? >> that is a good question in the market is hoping that won't be the case because we are ratesng to see growing significantly due to these extended lockdowns. sometime in the middle of q2

based on this recent experience we are seeing now, lockdowns don't achieve lasting control of the spikes. my guess is that we will have to defend the lockdown. it is not necessarily priced in and this could pose a significant threat to the reflation trade. stimulus, it will paper over all of this but we will run into problems in q1. shery: given the uncertainty, how should we position if we do see a threat to the reflation trade? back of continue on the just coronavirus vaccines rolling out? >> it is interesting, we have been trying to figure that out. throughch a long way 2021. it is the consensus right now but it is difficult to assume. this is probably going to hold

markets in check until we fuir rther analyze how deep these lockdowns are any fact through the commodity supply chain. in the meantime, we have seen a huge rally when it comes to commodities prices. we have seen this incredible strength in copper prices on the bloomberg. we've seen seven weeks of gains. copper stockpiles are the lowest in 60 years. supporting the prices. oil prices are up and we are not necessarily seeing higher oil demand yet. what is this telling us about where the global economy is headed? >> it is very bizarre, the oil rally. i think what is happening is a lot of this is getting applied by the vaccine. i think dr. coxe is looking in

the rearview mirror signaling to the other commodities try to catch me. that is what we are seeing where oil -- the backstop there is for china. the export side is providing the credit loop and long dollar position. they will recirculate that through the feedback loop in commodities. oil is a worrying prospect because more lockdowns will weigh on demand, especially if we see more lockdowns in major urban centers. the concern between now and when the vaccines rolled out, we could see another selloff in oil prices before they climb again. shorteneduple of weeks left until the end of 2020. does this fascinating year have the capacity for more surprise? >> i think growing sideways.

this is about protecting could profits that a lot of people have made. i don't think risk-taking proclivities will give way to profit taking before the year end. shery: thank you for joining us. stephen joining us from bangkok with his views on the year end button market. workers are flocking to shen jan. finding homes there are among the world's least affordable. this is bloomberg. ♪ the usual gifts are just not going to cut it. we have to find something else. good luck! what does that mean? we are doomed. [laughter] that's it. i figured it out! we're going to give togetherness. that sounds dumb. we're going to take all those family moments and package them. hmm. [laughing] that works.

>> more help is on the way. moments ago in contemplation with our committees, the floor leaders on the senate and the house finalized an agreement. there will be another rescue package for the american people. as our citizens continue to

battle the coronavirus, they will not be fighting alone. leaderenate majority mitch mcconnell after lawmakers skilled a deal on the $900 billion pandemic relief plan. nancyrd from democrats pelosi and chuck schumer a few moments ago. roz, what is new from all of this? roz: many things in the bill. ones that we anticipated but there are a few new things. aid.'s airline we haven't seen the actual number yet. that is something that airline industry has been insistent about. it is in there according to some. we don't know the amount. there is also money to shore up to post office nad to -- and

speed up the distribution of the vaccine. in addition, the $600 payments that we talked about on the $300 per week employment enhancement. there's quite a lot. another round of patek protection -- of paycheck protection funds. shery: senator schumer was criticizing the gop for what he calls their relentlessness against state aid. there seems to be some new target of funds for state and local governments. ros: one of the things that chuck schumer said as we found other ways to save our states. this has been a massive sticking point going back fo rmonth -- for months. mitch mcconnell and others bailing out my credit cities and

other -- democratic cities and states. the aid to the states in various ways is much smaller. one thing that they did say in their remarks, they're looking forward to january and the new biden administration. what becomes critical is what happens in the georgia senate runoff, if republicans hold a majority in the senate, we are back to square one. the outlook for the biden administration to push through another aid package is quite a lot different. there is that to consider. that is very important. circle back to those senate runoffs. kept: speaker pelosi emphasizing how there were 700 hours left until the biden administration took office.

ros: who's counting? shery: it is not about days but hours and minutes perhaps. what can we expect once the biden administration takes office? do they still have enough political capital to work some thing out after this huge package? thing weink that one have to consider is the state of the economy. going back a few months, a lot of republican lawmakers that the economy was on a glide path higher to the coronavirus pandemic. we have seen a lot of economic indicators waiver with the second or third waves of virus cases across the u.s.. many people unemployed for the long-term.

if the economy still looks terrible in the spring, i think democrats may have more leverage. any goodwill toward the biden administration could be limited. you can get more on the u.s. stimulus bill on today's edition of daybreak. bloomberg subscribers go to bbg go on the terminal. you only get the information on the assets that you care about. when it comes to the markets in asia, we are seeing the nikkei losing ground and reversing some of those earlier gains. it's now down 0.7%. this as we see the japanese yen under pressure, continuing to weaken around that 103 level.

kiwi stocks are the only ones reversing the losses that we saw. plenty more ahead. this is bloomberg. ♪ every year, we set out to do one thing: help the world believe in holiday magic. and this year was harder than ever. and yet, somehow, you all found a way to pull it off. it's not about the toys or the ornaments but about coming together. santa, santa, you're on mute! just wanted to say thanks. thanks for believing. more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root.

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paul: we are seeing a bit of weakness around the equity market in the asia specific cash the asia-pacific on this monday morning. go to sophie cameroon in hong kong. what do see, sophie? the kospi is leading the decline. the regional index is lower for the second straight day heading into the christmas break. losing steam ahead after the asian equities managed a gain. flipping the board and checking -- taking a look at u.s. futures.

the u.s. senate has agreed to a bipartisan deal. futures are gaining ground. this is where we assess whether or not the tech play was still be of interest going into 2021. we are seeing commodity currencies under pressure, including the aussie dollar losing half of a percent. cable, eyeing that 134 level. citigroup focusing on the end of the year as the real make or break -- as the real make or break. shery: let's continue to watch sterling. the european union and the u.k. blue through yet another brexit deadline. what can we learn from the volatility in the pound? >> as you indicate, another deadline way through.

markets are focused on the december 31 deadline. not surprisingly, we are seeing option markets if you look at the two week period the goes through the january 4, it goes into next year. 130, 138retty much a range. quite a bit range posting four points on either side. if you look at what is called the tail risks, those gain higher as well. that indicates the chance of an extreme move is quite a decent chance around 25%. markets begin to get worried. limitedously have got liquidity going into holiday trade which may exacerbate any move.

altogether, people may want to trade sterling. but they will be worried over the next two weeks. data from the commodity futures trading commission. what is that telling you about leverage funds visioning? david: if you look at the latest data that goes through last tuesday, it stays that leverage chance has some opposition. the scale things, it is very small. look at asset managers and that is about 6000 contracts. both with sterling, no conviction. a lot are happy to stay on the sidelines because of all the inherent risks, whether it be brexit, dollar changing. have more virus cases in the u.k. which is also weighing on sterling. thet of these factors puts end of the year on the

sidelines, trying to avoid trade if you can. paul: thank you david finnerty. vowing to china is maintain economic stability as the u.s. a blacklist more mainland companies. will look at how china fares in 2021. this is bloomberg. ♪

karina: i am karina mitchell with the "first word" headlines itsey is tightening restrictions. household gatherings are now limited to 10 people while at least three states are imposing border restrictions ahead of the christmas celebrations. meanwhile, early data from south korea show the exports continue to growth this month despite the level pandemic. outbound shipments grows. average daily numbers increase that had oneiod fewer business day compared to last year. the death toll from last week's powerful storm in fiji has risen to four with at least one person still missing. the major tourist hub has destruction.spread

with winds gusting up to 300 kilometers per hour. and russia continued to debate oil strategies. faster tontend direct market changes and take a more hands-on approach with an accelerated schedule and monthly meeting. saudi arabia say that producers can drive the market themselves. the next meeting is set for january 4. 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. shery. china's top planning body is repairing to prevent risks in 2021 to create a robust domestic market.

we await the decision on the china lending reference rates in the coming hour. fromn to louis kuijs oxford economics. it is great to have you with us. oft are we seeing in terms where chinese policymakers want to take the chinese economy, given that they really have not moved in the medium mlf rates this month, as opposed to earlier in the year, not to mention what they are saying during these economic conferences? louis: during that central economy board conference, they emphasized that they feel that they are in a reasonably good spots compared to other countries with growth and all that. they want to make sure that growth continues but they also want to activate that stimulus. we expect overall, policy to become a bit tighter. i don't not think that the lpr rates will see any change today

but more generally, i think that both macro and on the fiscal side we will see less stigma to, less expansionary policies in 2021. shery: put on a second. when it comes to fiscal stimulus here and the united states, we are seeing more expansionary measures. the house has passed a one-day funding bill to prevent a temporary shutdown, as we wait for that vote on the coronavirus relief package. that will be attached to that $1.4 trillion funding package. the house has passed a one-day funding bill to prevent a temporary shutdown of the government. we were going on that continuing resolution. providedhey have temporary funding until that vote comes through. vote a be a bipartisan

continuing resolution as we await the vote on covid-19 really. let's turn back to louis kuijs. let's talk about fiscal measures in china. we really have not seen more measures to support the economy, as the economic recovery has stayed on track. what are we expecting in terms of how the markets could react to this? if we see tightening much sooner than expected? louis: we think that we will see ,ightening next year in 2021 but you know, there is quite a bit of evolution and where the growth is coming from. we are seeing that corporate investment is starting to warm up, as profits improve. we see that the consumer is starting to become more comfortable. we think that with this private sector growth becoming more important, the government does not have to push as hard next year, as it did in 2020. wel: we have also heard,

have been talking on the show another.s. blacklisting 60 chinese firms, including big semiconductor manufacturers. is this going to have any actual implications for china's economy, or is this pretty much symbolic posturing? we have a lotw, of these kind of measures. i think they are starting to add up. i do not think that any of those measures by themselves has a major impact on the overall economy. but we do have a lot of them. it could be uncomfortable with these companies themselves, and sometimes for the whole supply chain around these companies. in this case, i think it is whether these companies can get access to u.s. stuff, u.s. components or technology. it does not seem like it is absolutely critical for them at the moment. helping.it is not

that is clear. how about the broader trade outlook between u.s. and china? would you that is better or worse shape than it was before the phase one deal? that you know, there is a lot of scrutiny and soul-searching, a lot of soul-searching by people, what will the new biden government mean for that relationship? overall, i do not expect things to change very much anytime soon. biden will not have a political mandate to be much easier on china. the overall relationship in our view is going to be pretty complex, pretty strained. on trade policy, biden will have so many things to do when he starts working. he most of these issues that will get cracking on arjun mastech. we did -- are domestic. we do not think that he has the

bandwidth, neither political mandate to really take drastic action on the try to fight ease that relationship. i think overall, the divide will not be as bad as under donald trump. but it will not mean any meaningful change overall in their relationship. paul: what -- shery: what does all of this mean for chinese policymakers with the opening up of the economy? view, we will have continuing this stance by china, that imposes some tension overall. because we clearly see a strong desire to further take reforms on the economic side, two also open up more the economy and the financial sector, but we also noticed that china is very comfortable in doing -- continuing with its state led

development strategy. that creates tension in terms of how foreign companies and foreign governments think about this, and how they think about further engaging with china. betweenthe relationship china and the rest of the world be affected somewhat by this continuing tension in china's remote and way of opening up to the outside world. course, while we are looking at chinese policymakers deal with these changes, we have seen on the regulatory front, whether it is subject or changes , what are your expectations on that front? louis: we have seen an interesting development, just as in other countries, increasingly, there is anxiety my policymakers and people more generally about the might of these tech giants and they need

the policymakers proceed to rein them in. some investors have become very nervous about this. does this mean the end of the growth for some of these big names? i personally do not really think so. china does not really want to click the wings of those -- click the wings of those large firms unnecessarily. i think there is a resetting of the regulatory landscape. policymakers have become quite power that these companies have. still do not -- i think that they will be overly zealous in terms of restraining these companies. paul: all right, oxford economics louis kuijs, thank you so much were joining us today. hong kong chief executive carrie lam laid out a future tied to beijing. in her policy address.

that adviser it says integration with china is a great they because the city needs deeper ties to the mainland in the post-covid recovered. >> as a whole, i think that hong kong needs china. , the whole notion of hong kong now integrating -- we to be careful. integrating, i do not mean politically. we still have a unique status. is veryally, hong kong much a part of china and operate we need china's economy to help hong kong during this time. the onealk about country to systems being a benefit for hong kong, the proximity to try to come in their relationship to the economy, but the separate system when it comes to the legal framework. your public prosecutors pushing forward process cases.

the of probating publications chris i think the judiciary. u.k.e hearing from the consideration as to whether british judges should be there in the first place. is that a concern for foreign investors, foreign businesses setting up home or who call their home in hong kong to not know if there will be an independent, internationally recognized judiciary to back them if something goes wrong? independence is the key aspect of the one country, two systems. hong kong can continue to function as the independent national center. it is most unfortunate to see comments made by politicians in -- u.k. to suggest

by asking them not to come, is actually doing us more harm. i'm surprised by this comment made by u.k. politicians or diplomats. haidi: his or even a point of having this judiciary if beijing will buy price it -- bypass it? when there aret unilateral decisions being made to carrie lam? >> beijing does not bypass hong kong core system at all, free will be. the national security law has always been our job to pass it. we have failed to passive. that is quite clear. when you look at the agreement back and 1997, that is the implicit power. being able to insert something, and you mentioned hong kong not being able to pass it.

that gives justification for beijing to do the job that we were supposed to do in hong kong. tell us this then, one of the things that have come up because of what has happened, and you justified that. what stops beijing from doing the same thing on other issues, for example i'm not saying that any issues exist right now, that adds -- that adds to the unpredictability of the policy e.g. here in hong kong -- the policy regime here in hong kong. how do you and the government address that? >> china has been repeatedly focused on those lines. a lot of hong kongers do not have these red lines. while they want to disrupt the special status of hong kong? as a gateway for china for the business. they do not want to do that.

so as long as you do not cross those red lines. you do not ask for the hong kong independence. as long as you do not cross those lines, china would not want to temper that special status with hong kong. they are more than happy to leave us alone and make sure that the business confidence remains. shery: highlights from our interview with bernard chan. more up ahead, this is bloomberg. ♪

shery: here is a quick check on the latest "business flash" headlines. softbank is reportedly raising half $1 billion. the plans for at least two additional vehicles. these sources say that goldman sachs and citigroup are managing the profits. -- thee lead dating app bumble is said to file for an ipo for valentine's day. advisors, bumble was launched six years ago by what you will hurt -- by the cofounder of another dating app, tinder.

paul: the average house in the metropolis of 22 million people in shenzhen now sells for about 900,000 u.s. dollars. we found out more from our bloomberg correspondent in shenzhen. [speaking foreign language] >> howdy folks. i'm here to check out the city's social mobility and the properties. >> i've here in the housing village in shenzhen where i'm about to meet one of the many migrants came here. ♪ i'm going to try to avoid being hit by repeat pajamas.

-- the streets are narrow. [speaking foreign language] >> the cost of an apartment 34.5 times a resident's

annual salary. >> [speaking foreign language] a downre she can afford payment, and she can only rent homes with her small budget. >> [speaking foreign language]

>> one of the things that she hopes to do in order to turn shenzhen into a model city is to build more apartments. there is a plan to have 1.7 million new apartments here by the year 2035. we have a huge apartment complex where half of the area is being demolished for new apartments. the other half is on schedule for demolition. that within these skyscrapers, the future starts here. from: visiting shenzhen bloombergquint take. you can see that in full and

much more in bloomberg quicktake streaming around the clock. coming up in the next hour, we will have more market analysis. this is bloomberg. ♪

tom: it is not :00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." i am tom mackenzie. haslinda: i am haslinda amin. toare counting down the open trade. our top stories.