>> good morning. i'm in sydney. we are counting down to asia's major market open. shery: welcome to "bloomberg daybreak: asia." congress will vote in the coming hours on the new pandemic relief bill bringing an end to months of gridlock talks as lawmakers head home. joe biden is a most high profile person to get the coronavirus

vaccine. president trump is yet to have the jab. china with new restrictions alleging human rights abuses. mike pompeo say they target people linked to depression in tibet. >> markets have just opened in australia. kamaruddino sophie in hong kong. downsides.are seeing down 0.2%. in australia, sydney has announced an outbreak though it will have a minimum impact. when it comes to the aussie dollar, after a choppy session overnight, it moved to mid 74

level that is trading below 76. let's see what else we have on the docket. some sales data and machine orders from japan this morning. i had of that, need to -- ahead of that, nikkei futures opening down in chicago. citibank wrote a note saying they are less constructive on the yen versus its g10 peers. wti, holding at $40 a barrel. favors more opec plus production in february. overnight did diminish. the kiwi gained some ground this morning. up less than 0.1%. shery: we have our eyes on

everything related to the coronavirus pandemic this holiday season. getting there will -- getting thelatest guidance from u.s. providing for safer travel. they just posted updated guidelines for air travel including a suggestion for pre-and post flight covid testing for the first time. this is the holiday season and we still have surging infections in the u.s. and more than one million people traveling and taking airplanes right now. sunday was the third day and a row in which one million people passed through u.s. airport screenings. you have the u.s. department of transportation coming out with new guidelines. given the pandemic, there is economic fallout in the u.s. and congress has voted on the pandemic relief package. a measure is attached to a bigger draft to fund federal

government operations. of the packagepy has been released. laura joins us on the line. we have the latest numbers on how much this stimulus package will cost. >> the package is about $328 billion of tax breaks. an overall package that costs millione north of 900 -- 900 billion dollars. there is also money in there for the paycheck protection program and unemployment. big numbers. thatf just $64 billion of 64 billion dollars of that will go out to u.s. households. paul: getting some breaking news on the virus in the united states. texas virus hospitalizations above 10,000.

they are at a five-month high right now. .ospitalizations are surging getting back to the relief package, how quickly will that start circulating through the real economy? the stimulus checks can start going out very quickly. as early as next week. the actual paper checks that people might receive will take closer to a month. the paycheck protection loans, they hope that will get out very quickly. up to are already set start processing those loans. unemployment is where the big question mark is as states were very slow getting those out last time. they do have some experience doing that now but it is up to each state to process those payments. that is where people need the money the most that they will have to wait the longest. they: speaker pelosi saying

relief bill is a first step towards getting local and state aid but it was a big sticking point for republicans. republicans wristed it having a big package of money for state and local governments. there is money in this bill that would go to help state and local governments including k-12 school, community college and transit authorities. there is money going to some of these hard-hit areas. there is some question about whether they will be able to have another package with joe biden. even if they do control all the levers of power in the congress, they have to win the senate first. they will still need cooperation from republicans to get things through. paul: our tax reporter, laura davidson. let's go over to karina mitchell. >> joe biden has become the most

person tole receive the coronavirus vaccine in an effort to convince more people to get the vaccine. he said the trump administration deserves credit for rolling out the vaccine so quickly. where they areng considering unprecedented measures to control the coronavirus including tighter social distancing methods and the closure of nonessential businesses. authorities are trying to avoid stay at home orders in fear of weakening the economy further. hong kong has its highest infection numbers. imposing new visa restrictions on chinese officials over alleged human rights abuses. state mike pompeo says the measure is linked to people linked to a oppression. the u.s. has already imposed

sanctions on chinese officials over access to tibet. and hawaii's best known volcano has burst into life. seismologist say a lake in the summit crater came into contact with rising lava causing the eruption. it last erupted in 2018. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. says: still ahead, a bank china and broader asia offer more opportunities than appreciate.rrently strategist and economist steven wieting joins us next. biden needs a strategic

long-term approach on china according to an expert. this is (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that and more in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you to maintain comfortable, correct form. that means better results in less time. you can do an uncomfortable, old-fashioned crunch or an aerotrainer super crunch. turn regular planks into turbo planks without getting down on the floor. and there are over 20 exercises to choose from. incredible for improving flexibility and perfect for enhancing yoga and pilates. and safe for all fitness levels. get gym results at home in just 10 minutes a day. no expensive machines, no expensive memberships. get off the floor with aerotrainer.

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paul: emerging-market currencies and stocks have dropped for a second day as a new coronavirus strain in the u k and new restrictions dampen risk appetite. our next guest still believes there are opportunities in asia and believes there are more opportunities there then people currently appreciate. steven wieting from citigroup. where are you seeing these opportunities in china and asia? ven: look, domestic airline travel for example is back up to pre-covid levels.

china has benefited from a large shift in western goods consumption from services into goods. export growth has resumed at a double-digit pace. the really untapped opportunity is that the west, particularly southeast asia -- very different from the powerful rallies we have seen in the chinese market and in the united states. nsivey tech lead covid defe composition of markets have allowed the united states to benefit a great deal and it is now down to other parts of the world that are racked up by covid difficulties. a good part of southeast asia are tourist -- is tourist dependent as is europe. we believe vaccines will be a game changer. rest starting point, the

of asia that is a trading partner of china will benefit from that resumption of chinese export growth and later on, we will see the resumption of service activity for markets that have posted low double-digit declines unlike the 30% return we have seen from china in u.s. dollar terms this year. paul: is there a risk though in the timing, the return to travel stocks? in australia, we found out the risk yesterday after we resume that the worst was over and now those stocks are getting beaten up? steven: that is part of the issue. timing is not a good thing for anyone here. saw the and april, we fastest market movements in history. we have a lot of gray news -- great news about vaccines in the last month and a half. there is no doubt there will be setbacks. what we have seen in the united kingdom is a scary thing.

short basis.a big lushness in certain recovery plans like copper for example. all of these rings again suggest there will begin of and take in markets but in the yen, this covid shock has been tremendous and only one third of the dispersion we have seen a cross world financial markets have been unwound by the impact of the vaccine which was anticipated. it could take a while. it could take all year. it could take a few months. there is a lot of improvement still to be priced in and a lot of rotation in the markets. take, wellgive and that applied to the tech stocks? this gtb stock on the bloomberg

stock graph on the bloomberg. will it be more of a broadening of the rally? or will there be a take from these tech stocks towards cyclicals? , iven: in the case of asia do think we will see a broadening of the rally. a great deal has been left behind. true't think that you have fundamentals. that is the same case when it comes to the united states that when we looked at severe rotations like the collapse we had in nasdaq stocks from 2001 until 2002 was because of a fundamental downturn. the performance of large cap u.s. technology has been sewed

tremendous, it has been the beneficiary of the type of solutions that tech has provided to protect us from covid, that we are not expecting a repeat of the strong performance. it is the catch of place in the covid cyclical stocks around the world. there are big parts of asia that are not suffering the full brunt of the covid impact we have seen in latin america, the u.s., and parts of europe. shery: what about markets like japan -- they have a heavy cyclical tilt? is similar toion the russell 2000 here in the u.s. steven: we are overweight in japan for the first time in a long time. going back to when we had the extreme cycle when things looked good but that was years ago. to bes point, japan seems a beneficiary of the rebounding

global trade activity that is already ongoing. it is important to think about shutdowns related to the coronavirus in the near term. some of the measures of factory activities, social distant activities utterly collapsed earlier in the year. you have seen an impact on personal mobility. we don't have to shut down all the factories again because of that. that is not happening. consumersition of spending has shifted to exporters. to goods consumption. , lot of the things, tourism hospitality, they are the weak points. they will come back and there is a good chance that we will see some rotation from the goods and exporters over the course of 2021 but for the time being, we think there is further to go in the recovery. we thinkare setbacks,

that will represent an opportunity. and not everything will go back completely to the way it was. we will also be in a different interest rate environment and different monetary policy backdrop. with the promise of negative real interest rates for the next couple of years from central banks, that is not going to be the same starting point for the competitive market of fixed income relative to the equities. shery: a whole different reality. steven wieting, always great to have you with us. up next, each month bloomberg crunches the number on the best and worst places to be during the pandemic. we will reveal the surprise moves in this month's survey. 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!

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>> as soon as we were briefed in the u.k. government about the fast transmissibility of this new strain, it was 3:15 friday

all ofon, we launched the information with the world health organization and we took prompt and decisive action the very next day to curb the spread of the new variant within the u.k. paul: boris johnson speaking virusthe new mutant strain in southeast england. the world health organization says there is currently no indication that the vaccine treatments will not work on the reported mutation. more time is needed to examine the strain. studied this mutation. happen beforehis with other strains. they arise and then they take over and become the dominant strain. i think the bottom line is that

there are interventions that are needed to prevent the spread. regardless of which variant it is. they are the same. that is what we should be focusing on. that will give us time to figure out the implications of this new variant. that will prevent anti-bodies from binding to the virus. these are questions that scientists are going to be answering in the coming days and weeks. >> how long will it take until we know the response of this variant to the vaccine? i would say it is going to take a couple of days if not a week or more. there are several experiments that need to be run. it is such an important question. it needs to be addressed properly. and we have to let science be

the driver. what needs to be done is experiments in the laboratory. the strain has to be cultured and then it will be exposed to neutralized antibodies from those with the infection or those that have received the vaccine from clinical trials and they have antibodies that are vaccine induced. those experience will let us know if we can neutralize this strain of the virus and any other strains of the virus. we need to run those experiments. unique to new variant the united kingdom? genomelargest numbers of sequences have been found in the united kingdom. i believe australia has one case. that itto keep in mind

is important for us to keep track of the virus as it develops. that is important for treatment and prevention. it is very normal for a virus to behave like this. all viruses do. the influenza virus mutates much more rapidly. that is why every year we have strain selection for the flu vaccine for that year. these are all possibilities for the future that we need to consider. at the moment, i think there is no indication that the vaccine treatments will not work. as the viruses come under vault -- they you evolve. i don't think we have any

evidence to suggest that the vaccine development will not work for the majority of people. the chief scientist from the world health organization speaking to our colleague, annmarie hordern. months, bloomberg crunches the numbers on the best and worst places to be during the pandemic. we have seen some surprising shifts. our reporter joins us with the findings. u.s. shocked on where the placed. dropping 19 places to the 37th position. what are the biggest changes for november? in november, we can see our global champion continues to be new the zealand. also made a bad

situation worse a cross europe and the u.s. back to the top five performers, new zealand, taiwan, norway and singapore. up to thisould move range as people resume activity. what is -- what has the impact been from the vaccine on epidemic containment? access toeshed the the vaccine metric as more information emerges. thehift from tracking infections to the population covered by the vaccine. hundreds -- thousands of doses have been rolled out in the u.s.

but that has yet to be translated into the calculations. canada topped the access to vaccines. they have enough to cover five times their population. it's overall population has been elevated by two spots. to see the vaccine rollout and worked to contain the virus spread on the ground, we still need some time. china and india slipped slightly. population is causing problems with getting enough faxing. -- getting enough faxing. paul: -- vaccine. we will hear exclusively

from a company that just listed in hong kong. next hourned in the by that ceo. to roberte talk hormats about the impact of the stimulus package. this is bloomberg. ♪

shery: this is daybreak: asia. i'm karina mitchell. the u.s. is imposing new visa restrictions on chinese officials over alleged human rights abuses. mike pompeo says the measures apply to those linked with oppression in china. the u.s. has already imposed sanctions on chinese officials over access to tibet in beijing's control over hong kong. -- a company is taking

a multimillion dollar payout from the republic of congo. two other australian-based companies have also lost their mining rights with a deal being awarded to a mystery company with no history and africa. this comes as a chinese company pays top dollar for iron ore. the pound fell as the main channel port for dover has halted all traffic and another brexit deal has come and gone. prime minister boris johnson has last ditch rich -- move on fishing rights to try to secure a deal. be able.k. has got to to control its own laws completely and we also have to be able to control our own fisheries. it remains the case that the

wto terms would be more than satisfactory for the u.k. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. paul. paul: we have been up and for about 30e asx minutes. we have seen modest declines. sophie joins us. have kiwi stocks a bright spot. futures opening lower ahead of some department sales data. australia, theom asx 200 off 0.4% this morning. thanks leading -- banks leading

declines in sydney. around $1880 this morning. dollar, holding steady after the climb where the pound is back up. it paired its worst drop since march overnight as karina noted. yuan, little change. is for u.s. selling in the offshore market. the aussie dollar in focus. looking at the $900 billion pandemic relief package, congress is set to vote in the coming hours for the bill. joining us now is tiedemann

advisors officer, robert hormats. bob, great to have you back. we continue to see the latest headlines on what the stimulus get risk include and assets are not responding positively. what is going on? lasts athe bill only few weeks. only a few weeks of payment for people. they will have to come up with another bill. it is not that the bill was particularly weak but it was not as robust as a lot of people had hoped and there will clearly need to be more legislation under the biden administration. few positive things including the congress decided to give the federal reserve some additional powers backing up

securities. that steven mnuchin and had removed. that was very helpful. there are very positive things about broadening the scope of the internet. people were doing online learning from home. for people that don't have hookups, there is money for that. there are a number of positive elements. it is a good thing that they passed some bill but the money for employees will run out on march 14 so they will have to have another bill. and i think what people were looking for is more money that would last longer. shery: how optimistic are you about another package even that we still have the georgia senate runoff to complete? rely somee bill will on what will happen in georgia.

isthey win, the prospect that we will get a much bigger is that the probability there will be a lot more money for state and local governments who desperately need money because they are bearing a lot of the brunt of the payments for unemployed people. l.a. and chicago, others with restaurants and theaters and entertainment having been shut down. and cities also have to provide social support for unemployed people or sick people to maintain public hospitals. far,need the money and so there has been a lot of stubbornness on the part of some republicans to provide that. on the other hand, the republicans would like to have against lawsuits and the democrats have been

refusing that. there is at least the possibility that the two of them will get it together but i definitely think the state and local governments do need money. not so much their pension funds although they need it but the broader public services that the cities and states provide are very important. particularly in new york. but also chicago and l.a. the cities are really going to get hurt. tepid reaction a to this from markets over this covid relief bill. the virus rampant in the u.s. and europe over all even though the markets are performing well. will there be any lasting economic scars were certain countries able to contain the virus? will be, yes.

a lot of scars. the entertainment industry, the hotel industry, office space, the demand for office space is down so those invested in large office buildings will be hard. a lot of vest -- a lot of restaurants will not be able to reopen. they cannot survive now and have had to let their people go. people werer working in restaurants as wagers or cooks-- as waiters and they will have a hard time finding new jobs. and those in the entertainment industry will be hurt very badly. thethen the structure of economy is going to change. it will be more distance learning, more telemedicine, though contraction of restaurants until there is a

vaccine that is very certain and secure. people will still be reluctant to go to carnegie hall or movie theaters or the metropolitan museum and places like that. it will have an effect for quite a long time. a very painful affect on people in large cities in particular. you seeonly that, as some of the smaller towns and cities have been adversely affected also and it will affect restaurants and entertainment there also. paul: we were hearing from nancy pelosi yesterday and she said 700 hours to go until .he biden administration is in how will he be able to leverage any goodwilll though to improve the situation if he can't win the races in georgia?

robert: it will make it more difficult because if he does not ,ave control over the senate many of the programs i talked about will not get through particularly for the state and local government money. it won't get through or won't get through at the magnitude required. the big one is infrastructure. have neededink and for decades a much more robust infrastructure program and part because it creates a lot of jobs and there are a lot of unemployed people in this economy but it also makes us a more competitive economy. the chinese put a lot of money in infrastructure. the u.s. has allowed a lot of its infrastructure to deteriorate. it would be good for u.s. competitiveness and create jobs. i think we need to

have a much more inclusive con activity -- conne ctivity so that people can get computers and communicate. it does little good to have distance-learning if people don't have computers and don't have wi-fi in their apartments or their houses to connect with. areasrticularly in urban where there is plenty of --acity, telik telecommunication capacity, the lot moreas need a coverage so they can connect with others around the country. you have the rural-urban divide, -- there areences a lot of serious divisions in

our country that hurt poor people and disadvantaged people and are very harmful to andrprivileged people harmful to a certain portion of the population. doesportion of the economy very well with computers. we tend to assume that everyone does but not everyone does and that is harmful to a lot of poor and disadvantaged people as well as rural people. paul: robert horvat -- robert hormats will be sticking with us. we have more on foreign relations with the biden administration. this is bloomberg. ♪

paul: one of the most contentious issues during the trump in ministration has been his relationship with china from tariffs, sanctions, and strained trade talks. that relationship will now fall to joe biden. .e are joined by robert hormats he is currently the managing director at tiedemann advisors. how will the biden administration differ from a trump administration? isert: i think what it means

andhould not look at china all aspects of it as confrontational. the notion seems to be a negative sum game in china. whereas i think there are areas where we can work together. health care for instance and environment among other things. is wek the broader issue need a long-term strategy towards china. i worked for dr. kissinger in the early 1970's. he set out as the chinese bid to develop a long-term strategy for normalizing relations. i think we have to move from a transactional approach to some idea of where their interests and our interests coincide and where they differ and how much they differ and how critical those differences are in begin

to figure out how we can work .ogether and also manage those issues and areas where there are fundamental differences. that is verye important. and that does not necessarily mean a summit right away but it means that senior officials have to work together. realm.y not in one grand but identifying issues and having serious discussions. we cannot simply separate ourselves from the chinese. we have to try to figure out -- we are the two biggest economies in the world and there has to be some measure of cooperation at least on some items. confrontation is mutually assured destruction for both

sides given the size of the economies. the other thing the united states has to do, if it is so worried about china's competitive ability, we have to get our own competitive act going and put a lot more into stem. we have to put a lot more into the next generation of 5g. shery: right. robert: there are a number of things we have to do. shery: to your point, when it comes to raising the competitiveness of the united states, there seems to be some consensus that the u.s. needs rivalry.cy on tech how does that fit into the free market here in the u.s.? do you need something similar in

the u.s. to what china has? robert: i would not call it industrial policy but i would say the united states needs to support advanced industries with support for science and technology. i mentioned for example the next generation of 5g. the open radio network system cloud,s software, the silicon to enable another type of technology. there are a lot of companies working on that and we could create a lot of jobs and it would put the united states ahead in the competitive race. there are ways of doing this. and i have been working on some and working with people on some but it is just an example. it will be important to the future.

there are ways in which the united states can support not only higher education in science and technology and math but also enable more people to get the training they need at the primary school level, secondary school level, high school level and college so they can go into these fields of advanced technology and to develop better infrastructure as well. these are important things that need to be done. if you are so concerned with our competitive capability and our -- andtive strength being proactive, why is your country not doing more? and we need to do more. it will take government support

to do this. of a vaccine, there is a lot government support for that. governmentthink of support. shery: a long-term race. robert hormats, great to have you with us. thank you. let's turn to brexit. the european parliament trade commission chairman says it is too late for lawmakers to scrutinize any agreement before the end of the year. speaking exclusively to bloomberg, they said that parliament must have the final say. >> it is quite clear. the european parliament cannot be closed before the end of the year. deal, the deal is not really ratified by the parliament.

we have to manage this transition period so the parliament has enough time to scrutinize such a big trade agreement of more than 1000 pages. quitel discuss it carefully how to manage the situation but no one is knowing if there will be a deal or not. >> the european parliament is not going to ratify the text this months. it is not going to happen. time has run out. is that the consensus view at the european parliament? >> of course. all is the approach from political groups. a period of have time to scrutinize a trade agreement. inhave some experience

negotiating trade agreements with canada and so on. this is not possible for the end of the month. for ad some extra time proper scrutinizing process. and by the way, the final yes or no on the deal is with the european parliament. you said on january 1, based on that logic, we are heading into a period of no deal. what does that look like? measures tond some stabilize the situation as it is. it is really dependent on the question of whether there will be an agreement or not. thean also discuss application of a deal to some in theo avoid disruption trade of goods and services. it depends on the situation. .e are ready to be flexible

the final word will be in the next year. paul: that is the european parliament international trade committee chairman speaking exclusively with bloomberg's maria tadeo. plenty more to come on daybreak: asia. this is bloomberg. ♪

paul: a quick check of the

latest business flash headlines. reports from california says apple has accelerated work on self driving vehicles. sources say the vehicle may feature apple in-house battery technology with a commercial rollout the eventual goal. tesla extended its decline. featuring among the biggest trades on the index. institutional buying of tesla surged last week. says it has one bank approval from australian officials to sell its beer to heineken. this has prompted regulatory questions and the possibility of proceeding with the deal. we are a few minutes from the

open in south korea and tokyo. sophie kamaruddin is in hong kong. from a deals in the mix japanese company agreeing to sell assets to a chinese company. it has been a better year for blank check companies. as regulators have requested more data on its antiviral drug before making a decision on its fact -- on its effectiveness to treat covid-19. we are also keeping an eye on a report that the tokyo stock exchange is considering removing stocks with internal control issues. it is one of the new topics that will be discussed for april 2022. shery: coming up on daybreak: asia, the outlook for 2021. why is the starting point for economic growth favorable? there are many issues to

consider. don't miss our exclusive interview coming up. the market open in seoul and tokyo is next. this is bloomberg. ♪ ♪ ♪

asia. welcome to daybreak i'm shery ahn. paul: and i'm paul allen in sydney. asia's major markets have just open for trade. our top stories this hour -- investors assess the virus relief bill in washington with congress to go to in the coming hours. it ends months of deadlock as lawmakers had home for the holidays. bloomberg has crunched the numbers on the best him worst

places to ride out the coronavirus and some results are rather surprising. the u.s. hits china with new restrictions over alleged human rights abuses. secretary of state mike pompeo says they are tied to repression in that. shery: japan and south korea coming online. let's get to the market action. headed japanese stocks for a third day of losses. we are keeping and i on robo advisor state news -- in tokyo it was the biggest ipo for the exchange this year. the yen staying at little changed. they are likely to see range bound trade and macy recovery after the issuance included an increase in the 40 years own. let's check on the open in south korea where the prime minister has said the government is to close ski resorts from christmas

eve to january 3 after soul headband holiday gatherings were five or more people. snapping a two-day gain. aboverean won is holding the 1100 level after crossing the mark on monday. of course what is going on with minors and resource players in sydney, let's check in on that by .4%side moves, off this morning while the aussie dollar not hitting that 76 mark. watching for retail sales to see if it can boost the aussie higher. changed after u.s. stocks overnight but did pare some declines late into the session. markets assess the lockdown woes against what could be happening with the virus. the new variant of the

coronavirus that is reported to be spreading rapidly in the u.k. and the wave of lockdowns and travel restrictions is dampening spirits in the markets, but our next guest says it is the .tarting point mark matthews joins us now. virus out of control in the u.s. and europe right now. the future of fiscal stimulus in the u.s. is uncertain but where does your optimism come from? is it all about the vaccine and ultralow rates forever? answer thenk you question. it is. the vaccine rollout, knock on wood, if it happens, we are going to get almost 20 million americans vaccinated in the first few weeks of january and those numbers will rise exponentially so up to a billion people could be vaccinated by the end of next year around the world.

as they are, mobility increases and we achieve a lot of normalization. that is the primary thing and i don't think the fiscal stimulus is that important myself. i will sound cruel when i say the economy is functioning just fine, although a lot of people have clearly lost their jobs and are suffering, but the economy is functioning regardless. package a $900 billion that will be material as well. but the main thing is the i think they will be rolled out successfully. paul: do you think some of these valuations have become a bit disconnected from fundamentals like earnings? for sure, pre-much every valuation metric is on the

higher side of its historic average. the reason for that is interest rates. the market wouldn't be where it is if interest rates were higher. our own addiction is for the 10 year yield to be at 1.5 by the end of next year, which is about a 60 basis point rise. we don't think that's a material enough increase to make stocks look less attractive. the earnings yield is much wider now than -- higher now than the treasury yield and that should act as a buffer. shery: the problem with economic recovery around the world is that it can cut the other way if you have central banks longer being supported. we have seen the pboc and authorities in china focus on financial rest instead of economic recovery. what is the risk of that being a potential downside pressure for markets next year? chinathe people's bank of

has been very unique in its policy, largely because the virus was contained very early on in china. their balance sheet has not expanded at all this year, unlike the balance sheets of the central banks in the developed world. i don't think it's a proper comparison. i think the people running these central banks in the developed world, be it in japan, europe or the united states are very dovish and don't want to risk the recovery by taking away the stimulus. but it is a risk, it is a possibility, not today, but around the second quarter when we get the covid numbers dropping very fast and mass vaccinations and a return to some kind of normalcy. of pent upbe a lot

consumer and business spending in our opinion. i'm sure you know household savings and household wealth, it's possible central banks might look at that and say the private sector is kicking in and we can take back. we don't think they are going to do that but it's not a risk until the second quarter. shery: what does that due to the strength of the u.s. dollar? the chart on the bloomberg is slumping below its five-year average. what are the implications for asian currencies on the other side? we seen significant strength for asian currencies. mark: the asian currencies are diverse and you identified the ones, the ones with strong surpluses. they should stay strong. the dollar is a material currency. there are so many moving parts.

increase iny an debt and the widening of the the way i would phrase it is if you look at it historically, whenever you have strong global growth, there's generally dollar weakness because money is flowing to other parts of the world. we are looking at a significant rebound global growth next year. europe will see a stronger the united states as will most countries in asia. consider the probability of the dollar continuing to go down to be high. great having you on. to karina mitchell at the first word headlines. karina: you could call joe a poster child that she's become the most high-profile yet to receive the coronavirus vaccine

in a move to try to convince more people to accept the jab. he was given the pfizer shot at a public event in delaware into the current administration deserves credit for rolling out the vaccine so quickly. president trump has yet to get the shot as polls show any americans doubt it works. hong kong is considering unprecedented measures to control the coronavirus, including tighter social distancing measures and the closure of non-essential businesses. authorities have tried to avoid stay-at-home orders since the pandemic struck for fear of further weakening the economy. hong kong has seen its highest infection numbers since the start of this month, many from unknown sources. sterling saw its worst day since the coronavirus struck as a reported new strain appended supply chains. the pound fell as dover help at all traffic and another brexit deadline came and went. sterling's one-week volunteer glitzy -- volatility was the highest for the season.

prime minister boris johnson made a last-ditch effort on fishing rights in a bid to secure a deal. 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. paul: still to come, we have seen plenty of investor appetite for biotech stocks broadly and we will hear from a company that just listed in hong kong. will joinan and ceo us later this hour. up next, as congress get set to vote on a long awaited pandemic relief bill, we will talk to a congressman about the details of the package. 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

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shery: congress is set to vote on a 900 billion dollar pandemic relief package in the coming hours, with a measure attached

to a bigger draft to fund federal government operations. the text of the near 6000 page package was released just hours at of the vote. let's bring in someone who knows what is in it. the republican from arkansas was instrumental in crafting the legislation. think you for joining us and congratulations on getting this bill finally passed through congress and a couple of hours. these negotiations have been going on for months, but they still don't include some of the key sticking points, whether it is liability shield for companies or state and local government aid. what is on at this time around that's better than could have been achieved nine months ago. think you could have had a different package as recently as the summer, a bipartisan package, but speaker pelosi asked for almost a trillion dollars for large states in the u.s. in terms of

additional funding and republicans wanted liability protection for companies in the u.s. trying to comply with the pandemic. this package is a balance. it helps our families with extended unemployment, economic stimulus payment for our families, rental assistance which was not in the original cares act which helps both landlords and tenants, and for the small business sector, an extension of the paycheck action program, duct ability for expenses connected with the for am, and good terms second ppp loan if a business is struggling. this is a muchat smaller package than we originally anticipated, how much do you expect this to help republicans in the georgia senate runoff in january? guest: i think this is good for people in both parties. families and businesses have been hurting since late summer.

this is something we should have done in september or october and it's good to have it over the finish line. to the extent republicans worked hard to get that done and completed, that is good for their campaign. i think it would have helped both parties had it been done before the election but speaker pelosi did not want to give donald trump any access to a victory before the election and that is what puts us here the week before christmas. is more stimulus going to be needed down the track? potential he in march. it's not just democrats and republicans that disagree. a number of guests we have been speaking to this morning say more will be needed. is another fight shaping up in the future? stages isng this in what makes sense to me. we've added a great deal of flexibility to spend the cares throughy all the way 2021. there is significant support for , this is a providers

very large, robust package and i want to see the reaction to the economy from both this stimulus work and the reaction to the vaccine they rollout and it will give us a chance to reassess it in the march, april, early may timeframe. --l: it certainly was large 5593 pages. one of your colleagues described it as a monstrosity. were you able to read all of it? does anyone know what is in there completely? guest: i stayed focus on the coronavirus portion. the appropriations had gone through our committee for the past six months. 10 of those 12 bills have been voted on the house floor, so a lot of the language that makes up this bill has been approved through the house and therefore did not get the attention the

coronavirus sections of the bill did. seey: what do you need to in the next package for it to get your vote? guest: the important thing is to assess what we do need at that time. let's see how the economy continues to perform, how the public health kleist -- public health crisis begins to decline. but see the response to widely available vaccines and let's assess what we need to do at the time. shery: this package includes billions of dollars in removing possible spying equipment coming .rom huawei how in line with you are you with those revisions when it comes to pushing back on china? the congress, on a bipartisan basis is concerned with china not playing by the rules,ules, diplomatic

trade rules, intellectual property rules. we've seen in a number of bills, including the defense authorization bill and this appropriations package, bills that strengthen america's ability to counter this forces of the chinese government, whether it is an 5g or some other way from a defense and technology perspective. i know you have been following the russian hack and have some thoughts on that. comments about this being the work of china, where they helpful to the process getting to the bottom of it and mitigating the damage? congress is consistently concerned about cyber threats. we have a significant fusion center in this country that the fbi and our intelligence agencies and private sector share information about potential hack threats across the networks both public and

private in the u.s. we know this is a priority and we want to get to the bottom of this and i agree with leaders in the legislative branch and executive branch, both the trump administration and incoming biden administration, that there will be a price paid by tempting this hack. we have seen a lot of confusion coming from the white house over who perpetrated these attacks. what do you expect to see when it comes to strategy to deal not only with russia but china? guest: you are right. cyber threats in this country are not limited to the russians. koreans, allnorth participate in cyberattacks in the public sector around the world. wethe intelligence basis, need to assess what strategies we need to take and if that

requires funding, we need to stand ready on a bipartisan basis to support that effort. shery: thank you so much for joining us today. we are still waiting for that vote in the house and senate. up next, the u.s. publishes a list of more than 100 chinese and russian firms with alleged military ties in a bid to restrict them from american tech. details had. this is bloomberg. (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you maintain comfortable, correct form. that means better results in less time. and there are over 20 exercises to choose from. get gym results at home. no expensive machines, no expensive memberships. go to aerotrainer.com to get yours now.

shery: here's a quick check of the business flash headlines -- softbank has fired -- filed for a blank check share sale to buy a company it had not previously invested in. it will be overseen by softbank advisors which runs the vision fund. such link check operations ask

investors to put up money before being told which company they will support. axios says goldman sachs and citigroup are managing the deal. peloton is buying a fitness equipment maker for 420 million dollars to boost expansion and manufacturing ability. it is their largest deal to date and it is expected to close early next year. peloton will gain more than 600,000 square feet of manufacturing space in north washington state. sales have soared this year as the pandemic forces people to work from home. ton of growth. a no one would wish the global pandemic on anybody. huge growth numbers, so keeping up with that growth which has been a moving target has been a company priority. whether it's the investments we made in taiwan, we have been investing for years now and growing the supply chain. this is one element of that

strategy. shery: boeing fell as a senate report criticized him for coaching pilots in testimony -- 737 max.7 max it accuses them both of attempting to cover up important information. it was approved to return to the skies and flights are expected before years end. securities it's venture is gaining clients faster than expected. theyior executive said have one more than 300 customers , including wealth management. the biggest brokerages tilting a restructuring helped restore profit. japanese brewer asahi says it has won approval to sell its

beer and cider brands to heineken. out --els include stella ois.la art it has prompted the possibility that it may need to sell assets. atl: let's take a quick look what is going on on the markets. the nikkei weaker by about .4%. up weakness in australia, and we've had encouraging news on coronavirus cases. just ate locally acquired cases in last 24 hours. we take a look at currencies as well and see strength in the u.s. dollar relative to what we have been seeing in the past. the aussie dollar showing a bit of weakness.

the yuan showing strength against the greenback. we do have some guests coming up later today and will be talking the philippine central bank governor, so stay tuned for that onerview as we get some more philippines monetary policy. stay with us. this is bloomberg. ♪

paul: we are just waiting on australian retail sales for the month of november. we are seeing retail dragging on the border -- asx, indexes off ,y one third of a percent retailing weaker by .1%. it is unusual for these numbers to be late. the expectation was for a decline of 2%. in october, we had a decline of 1.4%. the retail situation in

australia probably did not improve. we had a patch with very few covid 19 cases of the country and we are getting a bounce in retail sales -- 7%, huge beat. the survey was for a 2% increase. we have not seen a reaction in consumer discretionary stocks yet but a huge improvement in those retail numbers in the month of november. the aussie day at -- aussie dollar little changed. let's get a closer look at what's going on and go to sophie in hong kong. : aussie stocks being led lower by resource players after we saw copper retreat from a seven-year high. wti dropping the most in seven weeks. regionalnd busting the 20 -- regional trend. south korea leading the regional decline, off .6%. chipmakers along with auto

stocks and ev battery makers. a third straight session. softbank among the biggest drags, falling and that is the news. in tokyo, i want to highlight fujifilm which is under pressure , falling more than 4% as japanese regulators request more data on its antiviral drug to determine its effectiveness in treating covid-19. the company agreeing to sell its non-core assets in china. japanese drugmakers mostly on saying for, but jeffries the sector is set for a rebound with the japanese government planning to revise drug prices next fiscal year. each month, bloomberg crunches the numbers on the best and worst places to ride out the

pandemic and we have seen surprising shifts in the latest release. with theien joins us findings and being here in the united states, i couldn't help but notice how deeply the united states has fallen on the ranking. tell us about the biggest changes. despite authorizing to vaccines, the u.s. dropped a staggering 19 wrongs due to a worsening of the outbreak and the fidelity rate. vaccinations so far, and we know it has only just started, has failed to make a dent into that. a similar situation for the u.k. which went down to wrongs as the situation worsens with the lockdown of london. the most significant shift flows were in our top 10 with winter and people spending more time indoors, hitting those places that until now had success in containing the virus without strident measures like lockdowns.

was ranked number two among the 53 economies, it fell to seventh place. the country has seen cases swell to around 3000 a day and while that is very small compared to where you are at the u.s. seeing more than 150,000 new infections yesterday alone, it is an uptick from the summer months. japan legally cannot mandate a lockdown of businesses so it has relied on people really buying into containment measures like social distancing and mask wearing witches must -- which is much more challenging in colder weather. korea, which relied on quick mass testing and a very effective contact tracing system also dropped to eight from a fourth place. they've seen a flaring of cases which has raised questions about their ability to contain things in winter while keeping the economy open.

besides the curiosity factor, does the resilience ranking have a broader purpose? a snapshot for people to see how their country or place where they are is faring. indicatorsogether 10 from virus cases, the mortality rate, testing capabilities, plus the capacity of the health care system and the impact of those virus-related restrictions i have talked about. it gives a much more nuanced picture as to why certain places are faring better than others. o'brien joining us there. sterling has had its worst day since the pandemic, plummeting as a new strain of covid-19 disrupted the u.k.'s supply chains with europe and have

recovered some losses. the looming brexit deadline adding pressure with no major breakthroughs in sight. how do the pound dollar markets react? dayt: a pretty volatile yesterday. it went down to just under 132. while it ended the day down only .14%, some of that was headlines but some of that was exacerbated by the fact that it's just that time of year when christmas weekend the holiday trade has been quite muted. less volume, less liquidity, things get exacerbated. you saw implied volatility across all tellers. reason i mentioned to week

is because that will expire on january 5. you don't want to pay too much premium, you just want to get to that december 31 deadline. the interesting thing is even it was only down .4%, the market got more bearish. the premium got even larger, skewed toward downside protection. if you want that going into the next two weeks, you will pay a premium for it. provideould yesterday any insight into how brexit could be a buy the rumor, sell the fact trade? reason for of the

the initial selloff was the supply chain between u.k. and stopped all trade to europe. even if the deal is reached, the parliament has already said we don't have time to ratify it. have time which short-term measures may be put in place. that?ficient is even if the deal is placed, longer-term, some logistics there you have to think, the market may say we've got a deal and logistically you may well have backups in early january with the deal and that would be a positive for sterling. the latest there on brexit and how that is affecting the markets. richard lester says a resurgence of the pandemic and the new virus reported mutation in the

u.k. as more uncertainty going into 2021. he told bloomberg how this is changing corporate planning. richard: i had written to our clients that we are entering the most in certain planning season in our recollections and there would be more challenges to try to figure out what's happening. that would put a premium on being adaptive and resilient in the year when we don't know how things will unfold. what we have seen with the resurgence of the pandemic, perhaps evolution in the virus itself which makes it transmissibility go up, all those add a degree of uncertainty. mostthe act dropped, businesses feel optimism as we get later into the year. i don't want to make it seem that it is all gloom and doom, but the coming months feel very challenging. far ahead are companies

planning knowing things are changing? there seems to be a new headline every minute. are they looking to the back end of 2021 when there is a vaccine and we are mostly recovered or are they taking it near term one month at a time? looking topanies are the back half of the year to be in a normal and positive environment. that is no guarantee. an outstanding rollout of vaccines with a logistics set of challenges we've never seen before in order to realize that. most companies feel like by the second half of the year, excluding some sectors that will take years to recover, they feel pretty good. as the cfo, you don't get to have a long term unless you have a short term. short-term seems tough and most

companies recognize we are ending -- entering a heightened time of uncertainty and a sad time when deaths are going to rise in society will be under norma's pressure. we've been able to carry both thoughts at once, but the optimism around the medium-term and uncertainty in the short-term is what leaders are presented with. when it comes to working from home, the genie is out of the bottle. loosing a huge experiment on the centralized workforces. do we have an understanding of that? tot advice are you giving companies? you said it could be getting back to normal by this time next year. do you think that will be a significantly new normal when it comes to their approach to staff? world --e avoided the the word normal all year long.

most businesses i don't think will ever go back to how they did things before. ofwill see more hybrid forms work models, more questioning of how much you need to fly people to me -- to meetings to be effective when we can be effective in formats like this one. i think everybody has been an enormous learning time and while i don't think most companies want to stay in this model, having colleagues work only from build apprenticeship for the next generation and take on efforts require a lot of creativity. i don't think anyone is looking to go back to what we have and we learn how much we can operate more effectively by not expecting everyone to have to be physically together. richard loeser speaking kayleey johnson and

lance. who coming up, we will hear exclusively from a company that just listed in hong kong. the chairman and ceo will join us next. this is bloomberg. ♪

karina: both houses of congress will vote shortly on a $900 billion virus relief ill and a

larger measure to fund the federal government for the next few months. the package includes funding for small business stimulus payments for individuals, i deployment vaccines support for and childcare. majority leader mitch mcconnell says lawmakers will stay until the deal is done. the number of british retails fighting for survival has jumped in court virus. 40,000straighter says online and traditional firms are and what they call significant financial distress, up 24% from this time last year and 11% higher since september. 2020 has seen high-profile failures including arcadia. sundance resources is seeking a payout from the republic of congo after losing its license to mine iron ore. the financial review since two other australian-based companies have lost mining rights with the deals being awarded to a mystery

company with no history in africa. this comes as chinese steel mills pay top dollar for us trillion mind or. ash 10olcano sending kilometers into the sky in kilauea. a lake came into contact causing a short but violent eruption. a earthquake was reported one hour after the option. kilauea last directed in 2018. 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. a chinese biotechnology company focusing on cancer treatment listed in hong kong on monday, joining a record wave of fundraising and health care sector amid the pandemic. we are joined by the chairman

great to have you with us and congratulations on going public. let me ask what you are planning to do with the $170 million you raised in the ipo and are you concerned we've seen these other pharmaceutical companies going hasic and their performance been lackluster? guest: our company is a new development company focused on for treatingbitor lung cancer and colon cancer, so to conduct are going in both the u.s. and china, so in the u.s., we are going to

morehospitals recruiting patients in the clinical trial. shery: people have said this is a vote of confidence for your company. do you expect to see more of those partnerships? because foritely thefirst project like inhibitor in phase two clinical trials in our pipeline, we have stage.an 15 in the early that is exciting and we are looking for more opportunity to , especially with big pharma in the u.s. to generateve yet

any revenue. when do you expect that to change? what your outlook for turning a profit? our company is kind of have a because we license for the plan. licensing they 45ibitor, we already have million u.s. dollars upfront this is going to u.s., so everyon year we have our own revenue that and for the new

revenue income, i think we are going to spend three more years. we have seen quite a number of chinese pharmaceutical companies listed this year. some performed strongly, not -- some not so much. how do you engage investor sentiment in the sector? guest: it is kind of normal 2018, almost 13 different biotech companies listed in the hong kong sector -- of the companies that list hong kong before could intoally be -- could be classes.

that is following the research. other, by licensing the because that is very areetitive, our company, we and byn-house research collaborating with big pharma, chinese not only have a market but can project globally and have a global market this year. turningit is kind of a and from the following

turning in-house, that will be much better in the hong kong market. paul: you have been talking about your global aspirations, but i wonder if you are anticipating regulatory difficulties in non-chinese jurisdictions? guest: the chinese jurisdiction reform in the last four years is more similar to the regulation i cameu.s. fda because back to china in 2003 and i knew that history. the u.s.e similar to situation right now so i think

it is much better. to project, we are doing that first in the u.s. aso for the u.s. fda, it is mature regulatory deal. haven't feel like we difficulty to do that. joining us exclusively therefrom beijing. morehead in a moment. this is bloomberg. -- more ahead in a moment. this is bloomberg. ♪

paul: a quick check of the latest business flash headlines session softbank has fired -- filed for a 500 way $5 million sale it a company it has not previously invested in. it will be overseen by softbank advisors that run the vision fund. such blank check operations ask investors to put up money without saying which companies they will support. goldman sachs and citigroup are managing the group. google is to sell cloud computing group -- cloud computing in saudi arabia. it gives google regulatory clearance to set up what it

calls a cloud region in the kingdom, sparking potential criticism from staff who have asked them to refrain from industry. the energy the murder of jamaal because og prompted many businesses to pull back from the country. number is gaining clients faster than it expected. a senior executive told bloomberg majority-owned operation shanghai has won more than 300 customers including wealth management which began operating about a year ago. japan's biggest brokerages rebuilding in asia after a restructuring program helped restore profits. shery: coming up, a big guest -- we will be joined by the philippine central bank governor. before that, jeffries global equity strategist sean darby joins us with his market outlook, including why he thinks asia and the emerging markets are set for a burst of performance. that is it for daybreak asia.

our coverage continues as we look ahead to the opening in shanghai. stay tuned for bloomberg markets china open. this is bloomberg. ♪

i 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets china open. i am tom mackenzie. amin.m haslinda we are counting down trade in the chinese mainland and hong kong. haveop story, investors congress parent to vote. lawmakers had home for the holidays.