good morning. i am paul allen in sydney. we are counting down to asia's major market open. shery: i am shery ahn the agreement including a compromise that could get collapsed. virus restrictions tighten in the u.k. with much of southern

england now under tier four curbs. parts of sydney go into christmas lockdown today. asian stocks are set to rise after wall street gains for the first time in four days despite reports that house republicans may block a push for higher covid relief payments. australia coming online. let's go straight to sophie for a check of the markets. sophie: after we saw the rebound from a three week low on wednesday, he saw a little bit of cheer. the aussie dollar is holding on. up, australia and new zealand will be closing early today. is trading above 13,000. this is on a deal to buy an

infant milk manufacturing facility from chinese owners there. the fewocks are among forecasted for this year. august both in new zealand and thailand are running ahead of price targets. we see the aussie tenure yield rising nearly five basis points. we are checking in on what is going on elsewhere in japan. we are waiting to see if we can see some gains here. the yen is trading at mid 103 levels. the government is to vaccinate 50 million people. this may add other risk on sentiment. we are watching to see if former prime minister shinzo abe will appear in parliament over a party spending scandal. 1%. is up 1/10 of

this stayre seeing above 40 bucks a barrel. much onlight is very the pound. ,ou have sterling holding above gaining some ground here. we are looking for more details about the brexit outline. >> let's turn to karina mitchell for a check of the headlines. infections are approaching 80 million worldwide. a million of those are in the u.s. where pfizer and biontech have agreed to double their supply of the vaccine. germany reported its deadliest day since the start of the pandemic. house republicans are said to be .oving to nancy pelosi's plan the house minority leader told gop lawmakers that posey's --

push won't fail but all it will take is one vote to derail it. congress refused to abolish liability protection for big tech. he says the bill failed to address national security. it contradicted his efforts to put america first on for security. the president wanted to attach a defense measure that would end big tech protection against content liability. icein other news, massive shelf that broke free from antarctica is knowing -- is starting to disintegrate. it is close to south georgia. smaller pieces are still large enough to be given their own denomination. fromhelf is moving away south america and the impact on

local wildlife is being assessed. local news, 24 hours a day on the air and on bloomberg quicktake. than 20 700ore journalists and analysts in over 120 countries. i am karina mitchell, back to you. we are told that an initial agreement is in place with everything under discussion before it goes to the u.k. and eu leaders. putting the finishing touches on that deal now. what more do we know? 4.5 long years and with eight --s to go, finally, this afternoon, in london, news dropped on the bloomberg of the outline of a brexit trade deal. it is half past 11:00 in london.

has really stepped up, holding a number of conversations in a last-ditch bid to get this over the line. this has been going on for some time. with days just set to go, now, the negotiations resumed in earnest earlier today in brussels. and discussions focused excess they what will have after january of 2020. is this disagreement over what rights the eu will have to impose retaliatory tariffs should the u.k. go back on that agreement. the document still needs to be approved by the british pm and eu government. make als are trying to final announcement by tomorrow at the latest. at first glance, it looks

like the compromises may be on the fishing part of things. this has to do with where there have been negotiations and what came out of it. more than 500 billion euros are traded between written and the european union. you might think that the fishing is endings -- an insignificant part of this and you would be right. the right to regain sovereignty over the coastal waters of the country. you remember in 1973 when the u.k. joined what was the european economic community. it was fishing that was the sticking point at the end. it has happened again in 2020. in latest includes a 25% cut

the eu fishing quarter and a 5.5 year transition year for that. these are the two wishes they have been stuck on in the last few hours. that is how much they should reduce their cash buy and how long they need to get to that. 80%ain originally sought in reduction. -- an 80% reduction. of thehe depreciation british pound has been interesting. how have they been reacting to this news. time was at 4:10, london that this broke. this was an early christmas present for traders who have become rather weary of these headlines. -- brexit headlines.

is the more domestically focused index surging 1.7%. as you say, the pound is getting as much as 1% earlier, trading at 135. increase since march. traders will be keenly awaiting more details as we move through tomorrow. shery: for more on exit ahead, our correspondent is a labor economist and academic. he is currently a tenured professor at dartmouth college and will join us later at this hour. still ahead, the trump and pelosi push for bigger covid relief checks is meeting the public on resistance. we will assess the state of play with lobbyists and political strategists. up next, reasons to be cheerful.

we are talking market strategy for 2021. 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. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effortless look.

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shery:shery: shifting to the outlook of the next year. our next guest is optimistic for 2021, then there will be opportunities and investors should be ready. we are bringing in sylvia, great to have you with us. tell us a little bit about these opportunities and where you are finding them. i think that a lot of things are just lining up to look better in 2021. although we have this kind of setback with covid right now. we did have positive news about the vaccine. we have seen some better economic data including housing

numbers. generallyas been great manufacturing. i expect that with the vaccines coming and the stimulus, with the markets keeping near zero, we could see some positive gdp growth next year. between now and then, past is aer one, 2021, there lot of great opportunities to buy on the dip. i think you can get into your high-quality tech names like the rosofts, you can see the pullback and look at the barbell approach. you can look at the things that will open back up next year. >> not to mention the technology. also, because of this huge focus

on 5g. given the run-up we have had so far, are there sectors that you should be avoiding because we have been stretched so far? >> actually not. you bring up a good point. you can call this the next generation of technology companies, whether it is through munication or technology advances, those are the stocks that have the tech and infrastructure that will work toward the individualized sharing. they are telephone companies. 5g is alive and functional. china really started here. the recent apple show with tim cook was -- regardless of staying at home, when you have names like

that is something to look at. nextntinue the growth in generation technology. there are some great areas in the market that i like. i like the health care trade. you can look at the large caps, the small caps and what is really interesting is when you look at the small-cap i/o tech names, you're getting access to the names and health care. also, the biotech research for regenerative tissues and all of that, those have gone up triple digits your today. overend up getting taken by the gilead's, the crystal myers and the global health care fdastry has tripled, approvals, preapprovals are higher than ever. there is an aging baby boomer

population. it has been trading on a big discount. i love health care and biotech in general, too. >> just looking at some of the biotech's, there by 48%. it is quite a volatile space. how do you exercise caution when you get into that? >> you sort of have to understand what you're getting into. i think the way you look at it is you have the varsity players which is the large-cap biotech teams. they are the bristol-myers and the gilead's that are the giant companies. when you look at the junior biotech space, they spend 70% of their money on r&d. if they goes to -- go to phase two, they are already

outperforming the bigger companies. with this whole world of coronavirus, looking for elixirs, all sorts of new inventions, it is really good space in terms of disruptive technology and biotech. getting a great example in september. gilead rose 300% that week. get awas another one to revived bristol-myers, the 80% jump. they are taking. i really like the health care. i just feel like macro is the best backdrop for those to perform. paul: i know you look at china story as well but what are the risks there as well?

especially when president-elect joe biden is sworn in? more more sanctions, maybe regulatory oversight, what are the risks there? >> you bring up a really great point. i like china because i think they have proven that they have recovered, they are on their way to recovering at of the virus. only majore economies you have expanded. isical china is doing looking to bring a lot back home. they are building out a silver line economy. they're looking for key technology areas like semiconductors and biotech. i think the domestic demand has really held up on a lot of what

they are losing on exports and the shutdown because it is corona. will continuehey to support smaller businesses. they'll get that broader economy we are looking for here quicker. , alibaba.ts semiconductor , disruptiveames technology will continue to grow in both china and here in the state. all right, sylvia jablonski, thank you for joining us. you can get around up of everything you need to know in today's addition of daybreak. it is available on mobile and the bloomberg anywhere app. only -- you can customize it so you only get

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>> the food and drug administration is hoping the u.s. will reach herd immunity next year. they expect hospital workers and the elderly to be vaccinated by the end of the first quarter. >> i think particularly around the vaccine, we have been getting the message out that our terrific career scientists have been looking critically at all the data and made a decision based on the science and data. we are very confident about the equity and -- safety and efficacy of these vaccines. >> have you had the vaccine yet, sir? >> i have not, that is not because of any lack of trust. i am waiting for my turn based on risk factors. i do have one child that has received it.

that should tell you a lot about my confidence in it. >> where do we need to get to with the vaccines? are you and the fda were focused on a broad set of vaccines or are you focused on the millions required to get to that rate that is magical. hanhn: we are focused on both. we are focused on getting to herd immunity. is 70% or 80%that of the vaccination -- population vaccinated. this is to help get them through the development process, through the clinical trials and then an application to us at which point we will review a full data package and also making sure we are working with the manufacturers of the two authorized vaccines to make sure there is as much ramp-up as possible.

that includes providing information about supply chains and making sure there is high quality manufacturing. combat accusations -- dr. hahn: our responsibility is to be transparent. in june and october, we should guidance around the vaccines. we have issued more guidance this year than we ever had. everyonen is we wanted developing that to know what our thinking was. what do we need to know for any issue for medical products? for vaccines, we put the guidances out so that manufacturers would know what medications to send to us. we stuck to that guidance, followed that guidance and we had unprecedented transparency in the review process. within open discussion in the public for that data.

no other regulatory agency has done that. >> one final question. pfizer will have many more vaccines for america, when will we say fully vaccinated or mostly vaccinated for the elderly and for the essential workers that are in hospitals? cdc and thee committee has labeled this one a, one b and one c. i believe the schedule is we can get all of those people vaccinated by the end of the first quarter. -- march, of arch maybe sooner. we are working hand-in-hand with the cdc to try to get as many vaccines out there as possible to ramp up manufacturing. that was stephen hahn speaking to our colleagues. we have more perspective on the

virus coming up. the changes in the sports world with john davis next. worries about moving onto the sports field. leaving the market will help refocus on 4th street annual losses since listing in 2015. the club was backed by alibaba and was the first of the asian champions league. hong kong has awarded the prime residential site to work development. they won the race for the peak site which is valued at 1.5 billion u.s. dollars. it may supply more than 27,000 square meters of floor space and it could offer separate houses as well as apartments.

this is the 13th hang seng member to reach that high. she has enjoyed a boost in august when it was announced that she would join the hsi, fuel thehopping helped stock rose this month. [indiscernible] the deal collapsed due to longer than respected development time. ending in order which was signed in august. the ceo says it is the right decision for both companies given the resources and the investment required. coming up next, as the u.k. and the eu look to close -- look , the to brexit deal

conversation about that in a moment. this is bloomberg. ♪

>> this is daybreak asia, and karina mitchell. japan's billing the bro democratic party is looking to summon shinzo abe to parliament to be questioned about party funding, if alleged money was improperly used to subsidize entertainment promoters not correctly reported. he has yet to face his parliamentary colleagues. reported coronavirus infections are approaching 80 million worldwide with more than 2.5 million people receiving a vaccine shot so far.

pfizer and biontech have agreed to double the supply of the vaccine. mobile deaths have reached more 4.7 million. the u.k. has delivered an unwelcome christmas present, forcing much of southern england . most of the south will go into tier four with non-essential shops and businesses forced to close on bars and restaurants. the government says the variant is spreading at a dangerous rate. anger is rising among truck drivers outside u.k. port of dover. remain after cross channel travel for two days. lifted.has been

all freight drivers must be tested for covid-19, and into their frustration, mobile news, 24 hours a day, powered by more than 2700 journalists and analysts. i am karina mitchell, this is bloomberg. focuslet's continue the on brexit. the outline of a deal has been reached. danny joins us now. many elections in the u.k. -- it all came down to fish. is this resolved? >> the answer is no. there is going to be a transition time. more negotiations going on. this was never going to be simple. if you see the combination of the two things you just talked andt, tier four lockdown

trucks lined up at dover, the expectation is that the trucks will get longer, the british people have to see what a crazy no deal brexit would look like. eventually, the british government has to fold to some degree that there is still the question about what you would do about free movement. it will happen to living standards? it looks like the most disastrous form of brexit will take place but still, living standards will fall. support for scottish independence is going to rise because of it and there is an election in may. this still looks like a pretty disastrous step. perhaps they are making best of it now but the combination of a lockdown,a tearful the closure of the port in dover with an expectation that will get worse in january, it does not look great.

paul: i also want to focus on that fisheries question. the holder frame is $560 billion. fisheries are still a tiny fraction of that. but it was really a question about sovereignty. laborer, you have to know how many people who are actually employed in fishing and the number is about 12,000. all of this fuss about a few boats but obviously, there is something deeper here. there is something about britain's being an island. boats beingg stopped up by a few fishing boats, that doesn't make sense. in the end, folding will have to

happen. this is a tiny inconsequential sector that has much more importance attached to it than it should have done. in a sense, people will lose because they are arguing about 12,000 jobs in the fishing sector. >> tell us a little bit about the rest of the drops. how bad has it been for business? how bad could become given how close we are cutting into the deadline and how this is still not over. >> it is a really hard question. economy slowing recently because of the pandemic and the lockdown. travel collapses, all before you get to brexit. obviously, brexit itself, one of

the key things it will do is prevent the free movement of people and goods. come will bet does slower and limited supplies. we are a few days before that. what are firms supposed to do? what will they do about shipping their? to france, germany? this will be chaotic. is howy question devastatingly chaotic? this looks like the worst decision in peacetime made by any country ever. it waslly said that maybe an hundred years. >> what does that say about the

financial markets? we have seen a rally in the pound. we have seen these israeli into a 10 month high or so. what we continue to hear is that perhaps financial sectors will not get hit as much as main street, will we see more of a growing divide in the country as well? was thatality politicians were going to be mowed down by reality. in.ity kind of kicked realized a markets giant shock probably isn't coming. ultimately, they have the option of moving to dublin or

amsterdam. i think firms like to see the rise and the pound and the rise in the market. this does not look great for the u.k.. yeley question is how bad are the costs -- the only question is how bad are the costs? are even talking again about austerity. willthey will do is they make it really difficult for the government to do something as stupid as that. treat having you on. we will have you back to contribute and continue talking about frexit. -- brexit.

on brexit.nny sophie kamaruddin is in hong kong. had a dose of reality from danny there. we are seeing some cautious optimism coming in. 135.ng at 137, a downside risk, especially if they don't post negative rates to support economic activity which may be weighed down by these virus restrictions in the united kingdom. we are seeing the offshore yuan holding onto gains. is just steady this morning after losing as much as 26% in the new york session. the s&p is to the upside here. this is the first time in four sessions. trump vetoed the defense bill. let's check in on aussie shares.

adding .6%.asx 600 they are gaining shares in sydney, kiwi stocks extending the decline toward our fresh all-time high. about 13,000 points with the index eclipsing the 12 months price target. we are seeing bond pressure in australia following the steepening of the treasury curve overnight. the aussie 10 year yield is up about five basis points. next, after up president trump upended the u.s. -- thepackage, the last leading lobbyist on where they go from here. this is bloomberg. ♪

>> president trump won't let 2020 pass without a fight. boost asked congress to payment and a coronavirus to mills package passed by both the house and the senate. trumps own party seems to be balking at the higher relief checks. joining us for a look at the political fallout is melissa, a .olitical strategist thank you for joining us. before we get into the weeds of this defense deal or the covid relief package, just let me ask

thewhat you think motivation of president trump is to be picking a fight at the last minute with his own party on this? >> that is the question of the day. anyone who thought the final days of the trump presidency would be anything but chaotic has not been paying attention. i think the president was not terribly involved in the negotiation that happened on capitol hill in the past several weeks. that, he was particularly interested in putting his stamp on it after the negotiation past. >> what does this mean procedurally? we are running toward running out of funds for the government very soon next week. how can democrats and republicans come to an agreement right now? >> that is right.

the government is set to run out of funding on december 29. right now, it is an interesting dynamic. you have the covid relief package that would divide $600 to every individual in the united states. you have a national defense authorization bill that was vetoed with 700 $40 billion for the u.s. military to proceed with their activity. of course, you have a georgia senate race that will certainly determine the outcome of who is in charge with the senate -- in charge of the senate next year. there is this trifecta of everyone pushing this policy. republicans are surprised by the president's actions. the response to his twitter video was a surprise across the spectrum across the house and senate. there was a call among house republicans with leader mccarthy expressing exactly that sort of surprise. there are a lot of questions

about how republicans on the hill will proceed. there are some questions about whether or not overwriting the president veto could happen twice. >> the defense policy bill was vetoed by the president because of one of the articles -- he protection forl social media companies. and then we have senator lindsey graham saying we could tie that up with a $2000 direct payment. could that be a solution? >> i don't know. is a bit of a red herring. it is still an opportunity to revisit additional amounts for the american public during coronavirus relief. that is something that republicans ought to consider. although many have said we did

1200 in march. we will not do more than that. we did 600 this time around. i think those lines are pretty solid in the sand for house republicans. the house is returning to do a christmas eve bill that would be a standalone package for americans but that may not go anywhere in the senate. at we -- as we just witnessed with brexit, it is likely that -- where would you place the art of something getting done by december 29 and perhaps if the past four years are any guide, could president trump take credit for whatever happens? >> i think the taking credit part is certainly a foregone conclusion. don'tssional republicans want to shut down the government on the 29th. i think the odds are pretty good

that you will see something happen. we have previously seen the president come out very strong about this and then back off at the last minute. the fact that he has 28 days ,eft going up to january 20 that may inform a lot of fireworks -- more than we may have been dissipated. -- more we look at that than we may have anticipated. paul: we are looking at that package right now. think trickle-down economics have been the idea of senate republicans. people in the u.s. are ready to spend their money, certainly around the holidays. if they need to spend it on day-to-day goods or on their children, that is obviously important to the economy. state and local governments, it depends on the u.s.. certainly moderating the pandemic is a pretty reasonable

place. others are in complete disaster. i think it is hard for washington to pick winners and losers. you have to get all of the funding or none. that has been the conversation about how you do it. i think there is an opportunity for president-elect biden to revisit state and local funding. he is intent on doing so. paul: that was melissa. thank you so much for joining us. let's turn to how the relief bill would help the service community and financial institutions in the u.s.. addressing the needs of small businesses and underserved populations. our correspondent spoke about the impact of covid 80. >> we can strengthen our impact even further and deeper into the markets that we serve.

moderate income communities. communities that were struggling even prior to the pandemic. we will reach deeper into the markets and we will provide more assistance. >> talk to us about the biden administration that is coming in on january 20. janet yellen has already had a discussion with some of those guys, i think you may have been a part of that. darrin: really optimistic about the relationship we will have with the biden administration. janet yellen is going to meet with us. that sends a strong signal that they completely understand the s playant role that cdf i' in the u.s. economy. her role as a fed governor, she

showed a real interest in this area and also the deputy secretary. he had the experience of working on affordable housing funds in d.c.. we think we have an administration that understands the true importance of cfi's. that, married with a strong bipartisan support we have in congress, that will be good for cdfi's. >> you are well known for having very hands on initiatives with your banking customers in mississippi. give us a sense of how your people are doing. darrin: they are excited that this support may be coming. the small businesses are struggling, those in the restaurant. this new legislation, there are 28 $4 billion and a second round 284 billion--

dollars and a second round of paycheck protection coming out. there are people saying that i struggling,t, i am is there any additional relief you can provide? -- theyble to provide should only pay for that borrower. with a second round of paycheck protection dollars, that will be able to keep their employers -- employees employed and it will help them survive this pandemic. >> are we going to lose some small business support? >> i think that is the case. businesses of black will permanently close as a result of this pandemic. we have seen some that have not not it and many others will but we are going to do all we can to work with those small businesses we serve to help them make it through this pandemic and hopefully build back better

on the others. there anything that could help them come out of this? we always look at crises like this as an opportunity to rethink some things, redirect ourselves and come out stronger on the other side. we all do believe there will be another side. darrin: you never bet against the american entrepreneur. andt of the businesses small businesses that we serve, they have the entrepreneur spirit. have figured out how to make it having to operate in a different matter. -- different manner. i think they will be able to capitalize on the things they have learned in this pandemic to help them go forward in business in the future. >> we have plenty more to come on daybreak asia, this is bloomberg. ♪

>> a quick check of the latest business flash headlines. indian steelmakers are on course to lead the country to the biggest quarterly gain in over a decade. prices surge around the road. by a third inmbed the three months through december. juneis the most since the of 2009 time.

demand for steel is sharply higher. boeing will maintain some ends main after it production year. the extra space will be to prepare any dreamliner's after the final s&p moves to south carolina. the work will cover claims that have been rolled out but not yet delivered. boeing has declined to say hello the extensions will continue. we have electric powered garbage trucks. ending in order that was signed in august. the ceo says it is the right decision for both companies given the resources and investments required. shery: japan and south korea coming online. let's turn to sophie for a check of what to watch. that greencking to

theme, watching japanese utilities as players attempt to salvage some footholds. we are also keeping an eye on japanese autos. suspension of -- they will suspend production and north american plant. they will begin the sale of a compact electric vehicle that year. has been a solid buys with bets mounted on a green ship and lg electronics. we are watching to see if enthusiasm will persist this morning. elegy electronics -- elegy ectronicscs is -- lg el

is emerging as a leading chipmaker. paul: next, we will talk to the chairman of the professional fighters league about the challenges of bringing mma matches back to the fighting ring in a post-pandemic world. more on these developments, this is bloomberg. ♪

♪ shery: welcome to "daybreak asia." from bloomberg's world headquarters in new york, i'm shery ahn. paul: i'm paul allen in sydney. asia's major markets just opened for trade. story, an agreement between london and brussels that includes an agreement on

fishing, but it could collapse. in the u.s., much of southern new england headed for new curbs. and china aims to rely on domestic consumption to insulate the economy from external shocks, however household spending recovery seems to be uneven. with check market action soul coming online, sophie kamaruddin. regional index up 14% this year with pandemic pieces. up, by the most since 2009. the yen little changed after halting a three-day drop. jgb is moving lower. let's check south korea, the be ok set to release its financial stability report follows that

following the policy board meeting. it is not related to a right decision. trading the korean yuan at 11 no six, the kospi adding he, dws's sean taylor saying is liking old economy cyclicals in south korea. this morning you have australia early, zealand closing stocks rising to fresh highs in wellington, asx in wellington .1%, u.s. futures pointing higher while the dollar is steady. and we are seeing cash yields edge higher to 95 basis points after the u.s. curb. the 530 spread jumped the widest and it is now at 1.1 basis. a deall financial says

would drive more steepening in the curve. on the brexit deal, the asia session is up on a major monthly resistance line as markets where the impact of virus restrictions on the u.k. economy. let's go into the latest on the brexit negotiations. we have seen months of spot negotiations and finally, we could see an outline brexit deal. we are told that initial agreement is in place, under discussion before it goes to u.k. and eu leaders. reporter breaking right now, we are hearing from an eu spokesperson that brexit work will continue through the night, this coming through twitter, saying some sleep is recommended to brexit watchers, but work will continue throughout the night. we are close to another deadline, december 31. and we still have to see a draft

text. we still have to see it being sent to member states and the european parliament. what did the next few days look like? fornother late night negotiators in brussels, very late by the look of it. four and a half long years since the u.k. shock vote to leave the eu ended just eight days, the u.k. was set to exit the e.u. single market and customs union. but today in london, officials said the outline of a brexit deal has been reached. members of the negotiating teams still carry on finalizing that agreement. it is just beyond 1:00 a.m. in brussels. the u.k. prime minister boris johnson and eu chief negotiator ursula von der leyen have held several phone conversations to reach a last-ditch agreement. negotiations continued in earnest today at eu headquarters in brussels, negotiations

focused on eu access to british fishing waters and what rights eu would have to impose retaliatory measures should the u.k. break any agreement in the future. it still has to be approved by the british pm and eu governments, but officials on both sides hope to make announcements on thursday at the latest. just on that note, we are hearing from people familiar with the brexit talks, the u.k. preparing for a press conference early thursday morning u.k. time. we will be waiting for that. but in the end, this boils down to a compromise overfishing. what were the details on that compromise? : more than 510 billion euros of goods are traded annually between britain and the e.u.. just 650 million euros of fish caught by eu boats in u.k. waters. so you might think this is an insignificant part of the

british economy, and you would be right. in the many brexiteers u.k. and others across the european union continent, fishing is a highly emotive and significant issue. the compromise includes a 25% cut in eu fishing quotas and a 5.5 year transition period to move toward that reduction. britain initially sought an 80% cut over three years and the e.u. wanted no reduction at all. you will remember that when the u.k. joint what was the european economic community in 1973, it was fishing which was the stickiest of sticking point sent certainly has proved again. but a deal we understand has been reached on this crucial issue. back to you. tts inreporter yuan po london with the latest on the brexit breakthrough. let's get market reaction from our ig markets analyst kyle

rodda. we saw a surge in the dollar , but at most g10 peers covid-19 is rampant in the u.k.. how sustainable do you think the pound is going to be? i think effectively, in the long run, it will be positive for the pound if we get the deal and they couple of days. it has to go up a few hills first, like you said. economic underperformance relative to other economic peers is going to be a particular issue, but first and foremost, there is a capacity for the pound to push higher toward probably historic levels, or levels you might consider to be more in with historic leverage of this deal goes through. you're talking 142 plus in the first quarter or two of next year. going to be on the

trade,0 play the long the brexit trade, but overall, it is my contention a deal will get across the line. i think there is a lot of upside for the pound to go up in that scenario as risk gets priced out. paul: if you see upside to the pound, what is your target? kyle: the first target is around 139, just shy. that goes quite cleanly with where the market dropped from, i and aroundould say, the actual brexit vote for and a half years ago. i think there is a capacity for the pandemic to push the pound into the one 40's in the first or second quarter of next to, somewhere between 143 and 144. there is considerable upside to the pound on the basis of a brexit deal and effectively,

brexit being a feature of history rather than the present. shery: it seems in just a matter of days we could be getting this final brexit deal. it seems to be the understanding is that we will see a package. across seen a huge rally asian assets, the cost be now at a record high -- the kospi right now at a record high. what is left for a further leg up next year? kyle: probably two things are going to kick off the year,, first stimulus talks. least would seem from at what you can in for from the past 24 hours, that price action is irrational, and signals suggest the markets are taking a glass half-full approach to the talks and potentially markets are interpreting trump interventions the past couple days as being sufficient enough to push checks to individuals in the u.s., which would be very

positive for markets and something i don't think has been fully discounted. the next thing after that is a few weeks of political risk in the united states with the georgia runoff. -- runoffs. that is going to be incredibly significant because even though the market is more or less doced, the republicans will enough to keep one of those seats in georgia and keep the status quote. there is considerable risk of blue wave outcome could be achieved. market participants get that upside surprise. joe biden and chuck schumer are already vocalizing that into next year, no matter the situation, they will increase stimulus or negotiate stimulus up to inauguration day. i think those events pose an upside to risk markets at the moment. doing atthat trump is the moment, we will get through christmas and i think those are the next two things on the calendar from here. we are at year end

right now and have seen so much happening in 2020, whether it is covid, the vaccine rollout, brexit, the stimulus package. this is our question of the day live, what did investors learn in 2020 that they can using 2021? is capacityose it to stabilize markets in a matter of extreme conditions, that financial market participants can be subjected to either a day that will live on in infamy or in heroic memory, you could say. depending on how you look at it, the march 23 low that the market infinity,omises qe and that supported risk assets for the rest of the year and we are still seeing the consequences of that.

legacy of this year is that the fed has levers to pull and probably overshot market expectations and its ability to stabilize markets, but the flipside and counter argument is that it opened up a hazard in the future that the markets would be more dependent on the fed than it was in the past. to me, that was a key inflection this, and march 23 will be one for the history books, you could say. paul: before you go, i want to get your thoughts on australia. we just had nine new virus cases themrthern sydney, two of are mystery cases, but the outbreak seems to be under control. you are bullish on australia for 2021, aren't you? kyle: yeah, it is economic outperformance. what we learned from the us trillion situation this year is there are two things that

successful countries did to get through the pandemic, controlling the virus and applying very aggressive stimulus. we have seen that from both angles from australian policymakers. developments of the last few days have done a lot to shore up market confidence in the future, because it demonstrated that authorities can bring the virus under control without going into lockdowns, a very welcome development. those domestic fundamentals are quite positive compared to other markets, and plus, we are writing on the coattails of a chinese economy that is experiencing a robust rebound in economic growth. australian markets are poised to take advantage of that in the year ahead. we see a markedly stronger australian dollar and i think reflectiontrade, trade, recovery trade, whatever you call it, will benefit the asx 200 more than most. it is a very optimistic outlook

for us trillion markets next year. markets.ustralian shery: kyle rodda, always great --have you on, ig marts an markets analyst joining us from us julia. says houserce minority leader kevin mccarthy told gop lawmakers nancy pelosi's push to get to thousand dollar checks to americans will fail. it can be blocked by single vote. offered theump increased payments in a surprising demand. the president has vetoed a new defense bill after congress refused to abolish liability protection for big tech. bill was a threat to national security and the gift to china and russia. president trump wanted to attach the defense measures to an

unrelated draft that would end content protection. an iceberg near antarctica is starting to disintegrate, close to the remote island of south georgia, southeast of argentina. smaller pieces are large enough to be given their own denominations. -- localt on local law wildlife is being assessed. 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. ♪ coming up next, highlights from our interview with disease x bert anthony fauci. he would not be surprised if a new covid -- expert anthony fatty. he would not be surprised if a new covid variant is already in the u.s.. plus, the challenges of reviving live contact sport amid the

pandemic. the chairman of the professional fighters league, don davis, joins us later shery: top u.s. infectious

disease expert dr. anthony thach he expects to see most americans vaccinated by the middle of next year. he spoke to bloomberg about the vaccine rollout, skepticism, his own injection and the new strain in the u.k.. or six hoursr five after the injection, i didn't feel anything, less than the flu vaccine then, late afternoon, early in, i started to get a little ache, nothing to bother me, but something that when i press on it, you could actually feel it. night's sleep last night. i didn't get a lot of muscle aches. i felt something different, like

there was something going on, a be a little warm, a little flushed. i woke up this morning, i feel perfectly fine, the only thing i have now is, where the injection site is is still a little sore. when i say sore, i mean not distractingly sore, just baseline, borderline. >> if there are side effects, how quickly would they kick in? dr. fauci: they usually occur within the first 12 hours and last 24 and at the most, 36 hours. it is extremely unusual for someone to have something young 6-48 hours. getting yourn inoculation, you are a physician treating patients, and you wanted to represent to people that this is truly safe and you don't have to worry about it. you have a sense of much resistance at this point in the vaccination program? dr. fauci: it is getting better, thank goodness. orn we did surveys a month

two ago, almost 50% of people had reservations or skepticism about getting vaccinated. the last survey, just last week, they said more than 65% of the people said that they would be willing to get the vaccine. upreally want to get that even much higher than that, because the projection is that if you get anywhere between 75% and 85% of the population vaccinated, you would create an umbrella of immunity over the community, which could really get the level of virus so low, that it would not be a threat. and then you could answer the question everyone seems to be asking, appropriately, when can we start approaching some degree of normality? things likebe doing safely having children in school, or going to a restaurant and hitting indoors, or going to a movie theater?

i would think, if we start getting the general population vaccinated, let's say mid april, between now and then we are going through various priorities. we started off, health care providers and people in nursing homes and long-term facilities. the second level is people over 75, and individuals in what is or importantary places in society, to keep society running. and that could be anything from a police officer to a fireman, to someone who runs a grocery store so people can get food. thoseou through priorities, you get to what i call open season, anybody can get the vaccination, even if you are not in a priority group. i imagine that is going to be in april. and if we can really get vaccines going in april, may, june, july and august, by the end of the summer, i think we can get to the goal i am talking

about about getting the overwhelming majority of the population vaccinated. that is u.s. infectious diseases expert anthony found she with bloomberg balance of power anchor david westin. a vaccine developed by a chinese company was found to be more than 50% effective in a brazilian clinical trial, although more information is being withheld that company request. chief hass brazil more from sao paulo. julia, why's this information being withheld? were -- theyaid we said, we were expecting the data to be released today, swiftly followed by data to have the shot authorized by the resilient regulator. and what authorities said was that it asked to review the data

it got from the study, because there was some diversions with numbers seen elsewhere, and the shot is being studied. they didn't go into much detail other than that. this mean fores authorization to be granted for the use of this vaccine widely in zale -- in brazil? julia: they kept their timeline to start vaccinating january 25, a month away from now. the brazilian regulator has 10 --s to authorize the shot analyze it and authorize it, and they kept the schedule as is. but it does delay a lot. we were initially expecting the data december 15 and they delayed until today, december 23rd, saying that they would have the full picture of the not only emergency use, but full registration of the product with the data. and today, about an hour before the reset to release the data, a

local newspaper reported there were actually not going to release it at all. paul: julia, is there a political dimension to this? the sao paulo governor was expressed thing -- was expressing skepticism about this from the start and he is seen as a presidential candidate. does that add to the discussion? julia: he has actually championed it in his. he started calling it brazil's vaccine. brazil is very late in the race to get the shot. the federal government mostly relied on the astrazeneca vaccine, which is not ready because of issues with trials. so the governor has been pushing to get the vaccine as per zale's vaccine, and not only in brazil, but exporting it throughout

south america. and bolsonaro has publicly pushed back. he has said he is not going to take the vaccine and has said we are not going to use this shot in brazil, we can't trust it because it comes from china. but ittracked on that, created a lot of skepticism in the country, a lot of political noise around it. julia leiteberg's in sao paulo. breaking news. president trump releasing new pardons for allies, granting full pardons to 26 people, commutations for three more. they include paul manafort, president trump's disgraced former campaign manager who is in prison on charges resulting from the russia investigation. also roger stone, conservative political consultant and lobbyist. the president commuting his sentence and sparing him from serving time. he has been granted a full pardon. father ofles kushner,

jared kushner and a real estate developer. paul. quick check of a business flash headlines. worth $100maker now billion. and ited two years ago becomes the 13th smartphone company to reach that high after trading at only half that level when it debuted in hong kong. shares got a boost in august omi. it was announced xia boeing says it will maintain some employment at its seattle 77 lineup for ending production next year. extra space will be used to inspect and repair any defects in dreamliner's after final assembly moves to south carolina. the work will cover planes that have been rolled out but not yet delivered. boeing declined to say how long inspections will continue, or how many staff will be kept on.

indian steelmakers are on course sector toe country's its biggest quarterly gain in a decade. prices are surging around the world. the index jumped by one third in the three months through december, the most since 2009. l companies are steel sharply higher. the nikkei trading in japan, .17%, the cost be better by .9%. here in sydney, better by more than .5% after encouraging news on coronavirus cases, just nine new cases reported in 24 hours, new zealand higher by .1%. pound,, we check on the jumping on word of of brexit deal.

we look at what it means for sterling going forward. this is bloomberg. ♪ when you switch to xfinity mobile, you're choosing to get connected to the most reliable network nationwide, now with 5g included. discover how to save up to $400 a year with shared data starting at $15 a month, or get the lowest price for one line of unlimited. come into your local xfinity store to make the most of your mobile experience. you can shop the latest phones, bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your local xfinity store. i hope my insurance pays for it. can you tell me how much this will be? - [cashier] 67.

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♪ karina: this is "daybreak asia," i'm karina mitchell with first word headlines. 's political party is reportedly going to summon the former prime minister about spend onsed to promoters without income properly reported. shinzo abe was questioned by investigators monday, but has colleagues. coronavirus infections are approaching 80 million

worldwide. more than 2.5 million have received a vaccine shot so far. or than one billion of those are in the u.s., where pfizer and biontech have agreed to double their doses of the vaccine your many reporting its deadliest day since the start of the pandemic. the cluster of virus infections in sydney's northern beaches has risen to 100 four. authorities are encouraging people to limit their movement to curb the spread. new south wales reported seven new cases related to the cluster and are investigating to others. investigators admit there are chains of transmission that have yet to be controlled. the u.k. delivered an unwelcome christmas present does we see much of southern england in a new lockdown over a reported virus variant. to lockthe region ghosn -- goes into lockdown on boxer day closure of bars and restaurants the government says the variant is spreading at the dangerous rate.

anger is rising among truck drivers trapped outside the u.k. port of dover, as freight links to europe resume delays grow. huge backlogs remain after france cut cross channel travel for two days on fears of a mutant coronavirus variant. the ban is lifted but truckers face delays before boarding ferries.- all drivers must be tested for covid-19, adding to their frustration. 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: we have breaking news for you now. payment company square is said to be discussing buying the jay-z title streaming service. jack dorsey runs square. he has apparently been speaking with jay-z multiple times during the pandemic about potentially

buying this training service, as square looks to diversify. inle was bought by jay-z 2014 for $56 million, so square reportedly in talks to buy the title music streaming service. shery: breaking news out of china right now. beijing is expected to probe alibaba group on suspected monopoly. kinda financial regulators are expected to summon ant group for a meeting, this coming after an abrupt suspension of their ipo. we have seen jack ma now scrutinized by beijing beingities after that ipo shelved, which was supposed to be the world's largest, surpassing saudi aramco. but recently, beijing authorities have been changing the landscape of regulation when it comes to fintech. and now, we are hearing china will be probing alibaba group on suspected monopoly.

this as we continue to see efforts in the country to rein andech giants like alibaba their fintech branch and group. let's turn to markets, sterling exit -- on a brexit outline deal. investigators are putting the finishing touches on a deal but it was enough to send able higher. the bloomberg rates reporter joining us now. david, sterling has risen on the news of the potential deal but still remains below the december high. what is happening? david: yeah, that is the interesting thing. basically the markets have already priced it in now. bullish,if you are that would be the hottest in 2018. been, i thinkn't one of the reasons is because this has been priced into the markets quite happily.

and the new cases in the u.k., combined with the lockdown, is not positive. the market is always forward dealing and is going, the is fantastic but we have another problem that could weigh on the economy into the third quarter. any positive vibes are being lead offset i news -- offset by news. 12624, you go above may see investors say that it is time to take off the table. paul: if we look at options markets, they appear to be relieved there is finally a potential deal. david: even though it is not 100% confirmed, if you look at the two-week tanner for cable through january 7, yesterday it was trading 16.67 and now it is under 12.

it has come off quite a lot quite quickly. risk-based ife you think of it, and it is not definite, but basically assuming it is going to happen one way or another, most likely late today it will be announced. so the markets react with relief and say volatility is coming off. when it is announced, it will come off even further, but certainly the markets, because they are forward-looking, we think that they are pricing it in and seeing that risk can be 90% taken off the table. paul: bloomberg rates and ethics reporter david finnerty. let's check markets with sophie kamaruddin in hong kong. sophie: we have sterling on a front foot and while there is further appreciation, doesn't see further gains beyond 145 for cable. this as positioning is looking

exhausted. the aussie dollar is heading toward the 76 level, getting a boost from iron ore prices turning higher. crude $48 aing, barrel, first weekly drop since october, dropping 2% this week. let's check equities in asia, japanese stocks are gaining ground, banks and resource names lifting the asx 200, and the kospi i think an all-time high an all-timeing high. , lg electronics, byng for the stock, jump 30% the daily limit yesterday following its jb with canada's magna. saying lgceo electronics is emerging as an

alternative to tesla. and truck production will be stalled at two plants in north according to toyota. recapping breaking news, china will be probing alibaba group on suspected monopoly. now, financial regulators are summoning ant group for a meeting, this coming at a time when we have seen alibaba or ant group's $37 billion ipo shelved just last month. we are hearing china regulators will summon them soon on regulations as we continue to see the regulatory landscape in china changing, especially for fintech and big tech giants. we will have more. this is bloomberg.

♪

♪ a quick check of business flash headlines. terminating a deal for electric powered garbage trucks, saying the deal collapsed over time and done costs. is theola ceo says it

right decision for both companies. hong kong awarded a prime residential site to wolf development for a higher-than-expected amount. this as the real estate market starts to recover. valued athe peak site $1.5 billion u.s. meters of00 square floor space with wharf expected to offer houses and apartments. evergreen is moving to the sports field. the developer plans to delist the soccer club from the chinese over-the-counter market. the football club says leaving the market will help it focus after straight losses since 2015. was backed by alibaba and the first winner of the asian champions league. lines to recap breaking out of china, we have heard that will be probing alibaba group on

suspected monopoly, this as we saw the rewriting of some regulations when it comes to monopoly in the country last month, and as that $37 billion ipo was shelved. china financial regulators will be summoning ant group for a meeting soon. let's bring in lulu chen. lulu, what do we know so far? only knowar, we regulators are planning to probe alibaba on suspected monopoly. the news has been out for a while that they were looking into the company on this. to ant group, they are going be summoned by regulators including the central bank. and talks will focus on fair practice and also consumer rights protection. this news is all coming out as a follow-up to the recent crackdown's are seeing in the country, specifically with a very heavy focus targeting jack ma's empire.

paul: jack ma has been very outspoken, particularly in the lead up to launching the ipo. he has gone very quiet recently. is this a coincidence? ma has definitely not been seen anywhere. only his ceo and chairman has fully contrite and saying the company will cooperate with regulators in helping shakeup the company had making sure that the company is going to be compliant with regulations going forward. shery: one of the issues people are pointing to was the fact that some of these regulations were just being written as they had these conversations with these tech giants. could we see more clarity when it comes to what constitutes monopolistic practices in china, and how these companies will be regulated?

lulu: that is a really good question, because in the past, chinese internet companies have always argued they are not monopolies because the definition of the market scope, for example, if you talk about is the largestd player and has majority ownership of the market. but if you look at the larger transportation market, then they are a bit player, and chinese internet companies have been arguing that the business scope has been much larger than what they are operating online. right now, it does seem this is a watershed moment, where the definitions and scrutiny on this landscape are going to change. paul: we are just hearing from willroup now, saying it comply with the regulatory requirements. lulu chen, joining us with that up eight. come, the challenge

of getting back into the ring after the pandemic. the chairman of the fighters league, donn davis, joins us after the break. this is bloomberg. ♪

♪ paul: the food and drug administration is hoping the

u.s. will reach herd immunity next year. they expect children and the elderly -- health-care workers of the elderly to be treated in the first quarter. >> articulately around the vaccine, we have been getting the message out that our terrific career scientists have been looking critically at all the data and made a decision based upon the science, data. as we are very confident about the safety and efficacy of these vaccines. >> stephen hahn, it comes down to confident in trust. have you had the vaccine yet, sir? isn'tave not, and that based on trust. i am awaiting my turn based on risk factors. i actually have one child of the received it. that should tell you about my confidence in it. >> where do we need to get to with the vaccines? are you in the fda more focused on a broad set of the vaccines, or are you focused on the millions required to get to that

herd rate? >> we are focused on both. we need to get to herd immunity and around the world to stop the spread of this virus. experts think that is 70% to 80% of the population vaccinated or having had the disease. there is a multi prong approach. one is working with developers of vaccines still in development, to help get them through the development process, clinical trials and then application to us, at which point we review the full data package. i'd also, making sure we are working with manufacturers of the two authorized vaccines to make sure there is much ramp up as possible, including information about the supply chain, making sure there is high quality manufacturing, which we believe there is. >> commissioner, how do you combat accusations of political interference in medical

deliberations of the fda? : our missionhahn is to be transparent. in june and october, we issued guidance around the vaccine. we issued more guidance in that time that i think we ever had. we wanted is, everyone out there who is developing medical products to know what our thinking was. what would we need to see to do an issue for any medical product? thevaccines, we put guidance out so manufacturers would know what information to send to us in applications. we stuck to the guidance, follow the guidance and had unprecedented transparency around that review process, with open, public discussion of data. no other regulatory agency in the world has done that. that provided great confidence to the american people. news that pfizer, in some form of many millions of vaccines for america, when do we say fully vaccinated or mostly

vaccinated for the elderly, the true aged, and also essential workers in hospitals? the committeeahn: labeled this one a, one b and one c. 1a fits for most of the folks you talked about. i believe the schedule has most of those folks by the first quarter, so by the end of march, maybe sooner. we are working hard at fda with cdc to get as many vaccines out as possible and work with manufacturers to ramp up in you factoring. shery: fda commissioner stephen hahn speaking to our colleagues tom keene and lisa abramowitz. global sports faced massive disruption during the pandemic, but the professional fighters reinvent combat sports when the new season begins in april. founder and chairman donn davis

joins us from virginia. donn, thank you for talking us. april seems early when it comes to vaccine rollouts, so how do you plan to keep the sport safe? professional fighters league is a made-for-tv product. we are focused on the 5 billion people watching more than the 5000 people attending, even in nonpandemic times. we will be in a single location in las vegas full of covid protocols. we have fighters from 22 countries and standards to make them safe. but april 23, espn live, broadcast to 23 other countries for the beginning of the season. impact ofus about the the pandemic, especially the sponsorship cost of keeping the fights at the cost of not being able to perform? donn: great question. most sports have had viewership decline. major sport to

have viewership increase this year. i foresee mma coming-of-age. it is nfl for the next generation. high action. half of viewers watch it on streaming. so this is truly the next generation sport. in this year, you saw it come of age with the first increase year-over-year in terms of watching, while other forts decreased. $1000d all our fighters a a month stipend, not a lot, but the league is voluntarily helping them out. we also launched our own original content. we have live fights, 10 events a year, but now fans can engage on our apple or espn 24/7 with original content. paul: you mentioned the important of the online audience, and the viewing audience isn't necessarily in

the stadium. but that isn't the only centrality of digital products to what you are doing? donn: pfl has been a leader in innovation. there is fort hood 50 -- there is 450 mma fans and half are million18 and 35 -- 450 mma fans, and half are between 18 and 35. it is interesting because all these things provide context for the fight, but next year, you can bet on whether ray cooper the third will have a 30 mile-per-hour knockout, whether harrison will end the round in under one minute. so engagement for young fans on their phone isn't just on the screen, it is engaging. paul: are you looking into expansion plans as well? china features in those. what are you looking at?

donn: mma is one of only three soccer,ports, basketball, mma. china will be the biggest in mma the next 10 years. they are nascent right now. the pfl is broadcasting 160 countries including all countries in asia. we have writers from seven countries in asia. i think you will see china first and other asia countries second and 10 ewing to grow. i think it will be triple digit growth every year for mma for the next 10 years. you unveiled plans for a women's lightweight division in march that in retrospect looks like bad timing. you have plans to relaunch that? donn: yes. taylor harrison is a two-time judo gold medalist and is the the world fighter in in always classes.

women and men make the same in the pfl. we also just signed clarissa shields, the only woman in boxing to win to golds. we have kayla harrison and clarissa shields in mma and boxing and down the road, i think you will see interesting things like the mayweather-mcgregor crossover fight. kayla harrison and clarissa shields are now both under contract with the pfl. paul: professional fighters league founder and chairman donn joining us.s for recapping breaking news, china launching a probe into alibaba over alleged monopoly concerns. china kicking off that probe, regulators also saying separately they have summoned group to a meeting as well to probe for competition and rights. the companies say they strictly

require -- strictly comply with china regulators. shery: coming up, our exclusive interview with china bunch of us largest private delivery company. we are joined by the ceo later. before that though, the market advisorsrom capital andrew smith, he says we are in the early innings of a synchronized global recovery as we watch markets very closely. we are seeing broad upside across asia, the nikkei up .5%, kospi also at record highs, japanese yen in a tight trading range. that is it for "daybreak asia." weket coverage continues as look for the start of trading in

shanghai, hong kong and shenzhen . this is bloomberg. ♪

a.m.it is 9:00 welcome to "bloomberg markets: china open." >> we are counting down to the open of trade. reveal angulators investigation into