♪ >> very good morning and welcome to "daybreak: australia." i am haidi stroud-watts in disney. >> from bloomberg world headquarters in new york, i am kathleen hays. u.s. stocks hit record highs as corporate earnings estimate but results from the tech sector get a mixed reaction from wall street. haidi: the u.s. raises tensions with beijing.

china telecom corp.'s is significant security risks. kathleen:. china signals it's hesitation to boost evergrande. let's look at the board, you can see that the s&p futures are just barely unchanged, kind of hovering on that level, after a big run again. the dow, the s&p 500 both hitting fresh records. the day started before the tech earnings with very strong results from ubs, from ge, major bellwether signals for other companies. you can see the s&p closing up 0.2%. the 10-year note, not a big story in bonds. today. the curve flattening again. we had a rally. that two-year auction closed lower. maybe it had something to do with the unexpected jump in consumer confidence last month

as well as another big jump in inflation expectations next year. oil is down after the close, but a strong day. in fact, oil futures were around their highest since 2014. one oklahoma storage hub has been down since 2018. so haidi, the tech story now, after the bell. he saw losers today -- microsoft, buster earnings -- blockbuster earnings, sales profits were very strong. 11th straight earnings beat because of cloud computing strengths's. 10% or more sales growth in the third quarter. alphabet, a mixed bag. . there third-quarter revenue beat estimates but cloud earnings were a bit light. twitter another winner on strong advertising. but robinhood, crypto trading is cratering, and that is what hurt

them. haidi: we may be seeing more headwinds when it comes to the tech rivalry between the u.s. and china. we had the. fcc putting a ban on china telecom corp. it is not so much a big deal given they don't do that much business in the u.s., but it comes on the back of similar tensions with the likes of huawei. seems like the geopolitical aspects may be coming back into the fray as well. kathleen: and one of the most read stories on the bloomberg terminal in u.s. trading hours was evergrande told, according to sources at bloomberg who are familiar with the story itself, he has been told to deep into his personal fortune to pay off those debts. his fortune has dwindled $7 billion from $42 billion at its peak in 2017. and the total outstanding dollar bond coupons they have to take

care of our over $300. so some big questions there. looks like the government does not want to look like it is orchestrating a bailout. they want evergrande somehow find its way on its own. haidi: let's get the latest on the top market themes. joining us are our west coast reporter ed ludlow, and also our reporter in distressed debt, rachel. let's start with the tech earnings. ed: microsoft had really strong topline growth. strength in cloud and enterprise. we knew going into the quarter in particular, because we know from salesforce and workday, there is good spending environment when it comes to cloud-based computing. the 11th consecutive quarter where the company has beat estimates. 22% topline growth. it has been a standout performer this year, up 40% year to date. when it comes to google, slightly different story. there were areas of concern. the google search business is doing really well, tied so

closely to the economic recovery, in terms of people simply getting out there and searching for things to do. but we know a big part of the strategy for sundar pichai has been to diversify. their has been disappointing areas like youtube where revenue came in below expectations. cloud computing was a bit more spotty than it was perhaps at microsoft. kathleen: let's talk quickly about twitter and also about robinhood. what a tale of two two different earnings reports and reaction. ed: robinhood was interesting. first six months of this year, everyone was on their phone executing trades. then you get to the current quarter, crypto trading coming in at $51 million, down 78% from the debut quarter. sitting here and talking to you guys thinking, amazing, cryptocurrency trading at robinhood compost taken off. but the world has reopened, the world is going back to normal, and there isn't so much activity. the the full year revenue was

$1.8 million, the street was looking for $2 billion -- the full-year revenue was $1.8 million. the street was looking for $2 billion. we know they are less exposed to the apple i os changes. they have been investing heavily in direct-consumer advertising and it appears to be working. twitter is feeling its way, experimenting with new products over the course of the pandemic, and we are still waiting for real evidence that these audits are sticking todd. haidi:, let's get more on the china telecom story, the sec banning it. is it entirely on the back of national security concerns? todd: that is what the f.c.c. was saying today. they have been issuing reports over the last couple of years that the federal communications commission took under consideration. the chairwoman of the f.c.c.

said there is a risk of miss routed communications and surveillance. she indicated some other companies may be in for similar treatment. kathleen: all right, rachel, evergrande, a great bloomberg school about the government telling the billionaire founder that he has got to dip into his own pockets. are they deep enough to bailout or at least keep the debt payments going? rachel: that is a great question. we have no insight into whether he has enough wealth to help repay the company's that it has more. than $300 billion in liability. the developer has also started some residential projects in

southern china over the past weekend social media postings, and local governments are closely keeping an eye on evergrande's account to see if the company is using its cash towards the unfinished housing projects, rather than paying their creditors. overall, the chinese regulators are asking companies across the board to prepare actively to meet the payments on their offshore bonds. there are increasing concerns that some companies that have lower ratings may not able to make good on their debt payments. so this really shows that regulators are determined to avoid large-scale -- in china while they try to contain the evergrande fallout. haidi: the latest on evergrande as well as tech earnings and the latest on the f.c.c. in china telecom from todd shields. let's take a look at how we are setting up when it comes to the

start of trading in asia this, as we continue to head to the middle of the trading week. a bit of a pullback when it comes to potentially the start of the day in new zealand, up 0.3%. sydney futures looking flat. we have inflation numbers from australia today. third-quarter is expected to remain above the rba target band. nikkei futures are unchanged. kospi, looking like will see a positive open. paul allen has a first word headlines. paul: president biden has pledged to provide southeast asia with more than $100 million in funding to tackle the climate crisis. he made the announcement at a virtual meeting. he sauld to ulster ties with the region for the first time since 2018. singapore's opening travel lanes

to austria and switzerland starting november 8. people will not have to quarantine if arriving to the country. singapore recently opened travel lanes with 10 other countries, including the u.s., u.k., and germany. travel lanes with south korea will start on november 15. ubs is pushing back on concerns about china growth as it plans to keep spending. the swiss lander's profits jumped on the back of wealth management needs an investment bank returns, but it's asian wealth business saw almost $2 billion in outflows. the ceo told us he is still optimistic about ubs's business in china. >> absolutely. we know the country very well. we are very successful both in the onshore and offshore business. we have a very good combination of businesses, wealth, and asset

management, and we plan to invest in them. paul: china released its official roadmap for capping carbon emissions before 2030 just days before the cop 26 climate summit begins in glasgow. the roadmap provides some detail on how beijing plans to deliver on its promise to be carbon neutral by 2050 it has. plans for sectors ranging from hydropower, to oil refining. 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. kathleen: still ahead, we look at the process ask as this casino operator get two years to clean up its act. we will speak to a giving researcher. and, we discussed the market outlook from matt orton. this is bloomberg. ♪

kathleen: let's look at how the stocks are doing now. alphabet down, not as it was. solid profits and revenues, however, cloud computing numbers came in light. and microsoft -- microsoft, let's call it lackluster. sales up 10% or more. the 11th earnings beat in a row. looking real good. advanced micro devices coming in with a bullish forecast, their datacenter sales doubling. despite this, they are down two thirds of 1%. robinhood is down 8%. there crypto trading revenues have cratered. the outlook is not good, in

fact, they decreased the amount of revenues the sea for this year to $1.8 million. -- $1.8 billion. let's get the specifics on where the market is heading with matthew orton, chief market strategist for carillon tower advisers. good to see you again. when you look at the earnings today. microsoft versus google is one. then you take twitter, they did great. robinhood you wonder what their future is now. matt: it is great to be back. we are getting to see a lot of different earnings reports providing good view of what is going on both between the consumer, the rest of the economy, and i think this goes to what we have been telling our clients the past couple of weeks, is that as we get into this morning season, as economic growth is starting to slow, the

idiots -- -- the idiosyncratic events of all these stocks will start to matter. we saw the rise of meme stocks earlier this year, we saw a lot of volume and that is what propelled robinhood bob and got the initial enthusiasm around it, but you saw that trading wayne in the summer -- wane off in the summer and consumers rotating back to fundamentals which happens to be megacap stocks. that is where we try to director investors, is really following the fundamentals and the growth stories. kathleen: i guess one of the problems for some investors is, robinhood, when it was soaring and it was a newcomer on the walk, it was great -- on the block, it was great. people say they are great, still a good company, you may want to invest in them. but the evaluation is such that you can't expect the kind of gains you would see with some other stocks.

when you look at the big-tech companies, what do you have to say about them? matt: in general, microsoft is almost the exception of the megacap technology companies with risk evaluation. microsoft definitely trades much richer than the rest of the group. but you look at these other names, like alphabet and facebook last night, they are significantly cheaper and not trading that much higher than the s&p 500 valve. compare that with the growth these companies are posting, topline growth and earnings growth, strong margins, that matters long-term. even companies like microsoft, even though it is expensive, when you look at the growth they have been able to produce, 11 consecutive quarters of and raises, that is what matters. it is hard to argue with that. kathleen: i want to throw this chart looking at facebook. haidi: it has been really quiet

if you look at what it usually does. trading at a lower valuation compared to the broader s&p 500. facebook, is this a demographics problem with the growth trajectory going forward or are they going to face headwinds? matt: when we look broadly at a lot of these technology names, facebook one of them, alphabet another, i think what investors pay attention to in a lot of these earnings reports is the mix of both cyclical and -- growth drivers. you have revenues from advertising business, driven by people spending money, that is driven by the economy doing well. at the same time, there's other levers involved that a little more secular in nature. with respect to cloud computing, that is why a lot of megacap technology has continued to do

well, because they offer a mix of secular and cyclical growth that is really hard to replace with other companies. what we have been talking to clients about, if you want to move away from megacap technology, you do have concerns about the revelatory front or about valuations, another sector of the market that has vastly underperformed but has done really well on the earnings front end of those incredible secular growth exposure as well as exposure to the economy, is the healthier sector. we had a lot of the hmos report really strong earnings. they have consistently reported beats and raises quarter after quarter. you have medical devices, people going back to electric surgeries. those companies are doing well. we talk to clients about this. a great way to look adit's he had but aging population with increasing chronic diseases. what more natural place is there to get exposure to growth than

in the health care sector? haidi: is tech a preferred inflation trade? matt: technology has held up well against inflation. having exposure to they balance in different sectors, some technology companies can provide a bit of insulation and they have insulation which is very important. but financials as well, can do well if you have rising rates with respect to inflation. a lot of the large banks can do well. we have seen lackluster earnings earlier than this morning season. on top of that, they also have to diversify wealth management business that tends to be stickier and a lot less driven by net interest margins. that is an area that even though it has gotten more expensive, still looks very good because there are ways to grow. haidi: matthew orton, chief market strategist for carillon

tower advisers, always great to have you with us. coming up, a vaccine for younger children getting backing from the fda panel. we have more on that. this is bloomberg. ♪

>> an fda panel has lacked the use of a covid vaccine to five to 11 years old made by pfizer and beyond to. -- pfizer/biontech. this is one of the last missing puzzle since of the vaccination story. >> right, it means we're getting very close to having children ages 5-11 who are school-aged, getting access to the vaccine. the fda's vaccine advisory committee voted 17-0 to recommend the vaccine, saying that the benefits exceed the risks. the fda usually will follow with

emergency use authorization. if that happens, the cdc will be meeting next week to discuss the guidelines of who should get the vaccine and who should administer it. so in a matter of weeks, we could see the vaccine actually get into arms. kathleen: a heavily read story on the bloomberg today was about cases of kids getting the vaccine is really falling significantly in new york city, even as schools open up not everybody is wearing masks area we have been watching this very closely. when it comes to parents, how many are in the camp of, i want my kids vaccinated right away, and how many are in the camp of, i will wait? >> there has been a study by the kaiser family foundation that has been tracking attitude and it found one third of her and said they would get their kids vaccinated right away.

another one-third said they would see how everything goes. 24% said they would not do it whatsoever. so only one third of parents is going to be getting it right away. we will have to see how that goes. thankfully, cases across the u.s. for kids are falling. so that is good. but we are headed to the winter, and we know that covid comes in waves, and everyone will be indoors. the biden administration is still hoping that this provides a greater boost to its vaccination efforts. kathleen: carol wetzel our san francisco euro chief. now a check of the latest headlines. third-quarter revenue fell short as crude currency transactions -- cryptocurrency transactions on robinhood pop declined. the company posted a net gain of

$1.3 billion. the latest quarter is considered a test for robinhood up, with retail trading slowing after a very busy first half. chain of tech giants are playing down their links to nfts on concerns that they could become the latest target of regulators. they changed the name for nfts under platform to digital collectibles, saying they can be used for payment and resold for profit. although not illegal, nfts are considered a gray area in china, where crypto trading has been banned. and blackstone is targeting the rich through wealth managers, private banks, and family offices. it is planning to double its team focused on high net worth individuals. blackstone set up its private wealth team a decade ago, and its asian business has a target of raising $250 billion by

2027. haidi: taking a look at the day ahead for australia and new zealand starting off in new zealand, it posted a record beat in september as imports surged. data for the third quarter is likely to show inflation eased. quarterly trading updates show higher sales in both australia and new zealand year-on-year. however, the outlook remains uncertain, challenges could come with the upcoming christmas season. next, our conversation with former australian prime minister malcolm turnbull about emissions target. this is bloomberg. ♪

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haidi: former australian prime minister malcolm turnbull says fossil fuel companies have been holding back on their targets to cut emissions. australia upgraded its target just days before the cop 26 summit in glasgow. >> morrison has said that he projects that our reduction is on track to be 35%, but he will not make any commitment. the problem is, as the new south wales energy minister said, if

you are not prepared to make a commitment, it suggests you either don't have confidence in your projections, or you are not taking global warming seriously. every government in australia, state or territory, every business group than most major economies in the world have committed net zero by 2050, but we have to have more action sooner. haidi: even that commitment came after weeks of fractures domestic debate. what does that say about the environment here for coming to an agreement? is the hurdle to climate change in australia a vested interest or is it purely economic? >> it is political, a combination of vested interest in the coal and gas sector that want to keep on producing fossil fuels because that is their income. it is right-wing politics, crazy science denying right-wing

politics that has affected much of the national party and the liberal party for many years, and, of course, it is right-wing media, mostly owned by rupert murdoch. you have seen exactly the same phenomenon in the united states. haidi: what stopped you from being more ambitious on climate when you were in office? when you reflect on that time, does it feel like much has changed? mr. turnbull: the political debate has become a more irrational. i got as i could but i had ferocious political opposition from the murdaugh press and from the right wing of my party. the politics have been really poisonous for years. then that is what is holding us back. haidi: what do you see as the prospect major, meaningful agreement struck at cop26? the energy crisis we are going to at the moment, does it affect that, do you think that is not the big stumbling blocks? mr. turnbull: i don't think so. i think the concern is

obviously, i think there is now widespread agreement that we have to cut emissions. the question now is how and when. then the message we have got to get across is that we do have the means to do it. you hear people say that we new and better technologies. new and better technologies are always welcome, but we have the means to have plentiful energy, zero emissions, affordably. that is the big change. haidi: what does it mean for australia's standing and reputation if you go into that room in glasgow with nothing more than what is being announced today? mr. turnbull: everyone will be smiling and so forth, but he will not be received rapturously, let's face it. everyone has been encouraging australia to have greater ambition for it 2030 target.

haidi: that was former prime minister malcolm turnbull talking about australia's climate admissions. kathleen:. kathleen: i would like to talk about xi jinping's ambitions. as he looks forward to the national ready congress coming up next year. he needs to actually politic. a lot of people who don't follow china closely may not realize that it is a common used country, but there is politicking. when there is power and people are trying to stay on top, that has to happen. our lead story, xi jinping is too busy lobbying on the climate story. he needs the endorsement of the central committee, more than 2000 officials around the country. so it is interesting how this is going on. meanwhile you have the cop26 agenda which is very important. haidi: and it is an important domestic issue as well, to balance it with the fact that large areas of the country,

providences, are going through energy crises, they are trying to go through this energy transition. it is a big year of politicking for president xi jinping as he seeks to consolidate power. in addition he has this full domestic agenda not least of which are the regulatory crackdown issues over tech and property, as well. we continue to see the fallout with evergrande, and now a number of property players are looking for a giant there as well. let's get more with paul allen. paula: that billionaire founder of evergrande has been told to use his personal wealth. the directive came after evergrande missed a payment for a coupon payment. local governments are insuring company cash is used to complete unfinished housing projects and not diverted. the u.s. has revoked china telecom's permission to operate in the country. the fcc canceled its licenses, saying its ownership raises law

enforcement risks. the commission pledged more steps to purge the country of chinese technology in the name of security. the fcc says it is also fast tracking security reviews of china unicom and comnet. president biden sent white house and treasury aids to review candidates for vacancies at the federal reserve. the president has not settled on whether to reappoint or replace jerome powell as chairman when his term expires in february. a panel of u.s. experts says the benefits of the vaccine for young children exceeds its risks. the fda vaccine advisory committee voted 17-0 to back the pfizer/biontech vaccine for children five to 11 years old. kids generally don't get sick from covid, not as sick as adults, but making a vaccine

available to younger children would mark a major milestone in the pandemic. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. haidi: the victorian state government gave crowned resorts two years to address a litany of wrongdoings in its flagship casino. independent inquiries found under paint taxes facilitate money laundering -- and are paid taxes and facilitated money laundering. let's get more with professor charles livingstone. great to have you with us. quite interesting that the former justice said they were essentially unfit to hold these gambling licenses but stop short of stripping them of their ability to operate. was this the best-case scenario that crown hoped for going into this? professor living stone: crown argued for it.

who would be able to oversee their operations and steer them on the path to recovery. but i never thought it would actually happen. but it has happened. they have a two-year lifeline by which they have to rehabilitate themselves or lose their license. so it looks very much like they will continue to operate the license into the future. haidi: does this have implications for --? prof. livingstone: it certainly does. this is now the second inquiry in australia that has found them unsuitable to be a licensee. there is still a third commission ending in western australia in relations to operations at their first casino, that is certainly taking

a closer count of both the victorian inquiry and the other inquiry, their outcomes. they still don't have permission to open their casino in sydney, and it is possible that the south regulators may withhold their commission until they demonstrate that they are on track to rehabilitate, that virtually no member of the board is left from the original. that they have got a big culture change program underway and so on. there are still many clouds hanging over them, not the least of which is their appalling approach to dealing with people harmed by gambling. it has been singled out as being quite reprehensible. kathleen: what kind of legal requirements are there if any, to make sure that casinos yield with i guess you would call them gambling addicts. with hours in the u.s., you can be charged if you keep serving

somebody drinks and they hit somebody in their car, et cetera. do we have things like that for gambling? prof. livingstone: not really. the whole notion of gambling being regulated while in australia or anywhere else in the world is a bit of a --. what happens is we have the responsibility of an individual gamblers, and as we have seen with crown, they are able to get away with whatever they like. there are instances of people gambling nonstop on crown's slot machines 36 hours at a time and not even taking toilet breaks. it happens in many jurisdictions , but in crown's circumstances, it was particularly notorious. they didn't meet the standards of being the world's best. they claim to be the world's best, but they are probably amongst the roles worst.

so the standards for regulating the harm far gambling are really more, certainly in australia and in other countries as well, and they need to be dramatically improved. the prosecutor made a number of important recommendations. kathleen: in many places, you can look at atlantic city in the u.s., many examples in other countries where, these casinos, they create jobs. they create tax revenues. that is why the reasons why people who are against gambling put up with them. with credit, in terms of the economy, is it too big to fail? in other words, if they cast out all the leadership, they want these companies to survive, the. prof. livingstone: they want them to survive. victoria and crown provide over $300 million in state tax revenue. that is a reasonable amount of money. is not overwhelmingly large proportion of the state jet, though, fairly tight portion of

it. it is a little bit like mr. turnbull, who was talking about the power of nested interests in politics in australia. . it is really quite remarkable. many gambling associations having political our based on their political contributions. they hire former politicians as senior staff members, as lobbyists, and as government relations advisors. they have enormous power and clout with all political parties at every level in australia, from local government all the way to the federal government. so that is one of the biggest impediments, is that we really don't have enough transparency in any capacity to hold these large vested interests into account. one of the biggest vested interests in australia other than the coal and mining industries, are the gambling industries. kathleen: thank you so much, charles livingstone, monash university associate professor.

, we are expecting more details on the democrats' so-called billionaire tax, as president biden tries to push his economic agenda forward. this is bloomberg. ♪ d. this is bloomberg. ♪

♪ >> two prominent billionaires, larry fink and ray dalio, say

they are open to more taxes but only if the money is put to good use. you can see the ideas -- i think a lot of people understand. but it is interesting that they were speaking jointly at a seminar and obviously the whole point of this is that billionaires have a lot of money that is not taxed right now. we will get into the details of that. . this proposal to tax their holdings before they sell them, i think that is one of the things that is controversial. you can pass them on and on and on and they never get taxed. one more thing. a lot of people thing, yes, more taxes, but they look at the numbers in d.c. and they think, where do they get these numbers? do they really work hard, or do they just draw a bunch of numbers? haidi: let's look at what ray dalio said -- i would support anything that is going to have the effect of being spent on increasing, creating equal opportunity and greater

productivity. this is on the plans drawn up by the democratic lawmakers on taxing dinners higher. the question -- taxing billionaires higher. the question of where these billionaire taxes will be spent towards. kathleen: the question is how to pay for it. they are claiming $250 billion of revenue out of this. let's move onto the story in washington today. democrats set to release more details on this so-called billionaires tax. they could be crucial to turning the president's economic agenda into actual legislation, it has been hung up for so long. no one knows better than our tax reporter joining us from d.c.. give us the background. we know it is a big tax potentially, but how did it come about, how did we get here? >> so this is an idea that

democrats have been toying with a long time, particularly for the wealthiest. a lot of their wealth is in unrealized gains, not income which is, taxed in the u.s.. with gains, as long as you don't sell an asset, you don't have to pay taxes on it. democrats have been thinking, how do we get some of the highest earners, the wealthy people in the country, to pay taxes? they develop the billionaires income tax. . it would basically target the 700 wealthiest people in, the country and basically say annually, the government would look at all of their assets, there publicly traded assets, how much their portfolio went up or down and pay tax on that. if it went down, you would get a tax coded for a future year. it is a different way of thinking about taxation that is really out of the norm. haidi: what is the likelihood of all of this going off without a hitch? laura: in congress? the likelihood of anything going

of without a hitch is about 0%. this one in particular is facing a lot of headwinds. we are starting to see resistance even among democrats. there is concern that this is coming in as democrats are trying to finish up this deal and it hasn't been fully vetted. there is concern it could face some constitutional challenges. there is also concern that this is something that some moderates could not stomach. there has been a lot of criticism. one democratic congressman called the idea a stand earlier today -- a stunt earlier today. haidi: president biden, we are told he has not decided whether to reappoint or replace chair jay powell. earlier we spoke with the committee banking chairman. you discussed the scandal regarding the top fed officials.

>> i don't know if we have gotten to the bottom of it, i assume we have not. i introduced the amendment to a bill six or seven years ago, that individual senators could not hold individual corporate stocks. it has a potential conflict of interest because we vote on everything in the economy. but the federal reserve, these are seven very influential people. they should not be spending their time daytrading, not to mention the conflicts of interest it presents, in the appearance of conflicts of interest. two fed presidents have resigned, as they should have. we need to know more, and i am working on legislation that i have been putting together for some time. it would say, members of congress should be able to hold corporate stocks, and fed chairs and presidents. the governors and presidents of the 12 regional feds, the fed governors, and the seven in

washington, from jay powell told dale brainard and others, they should not be allowed to either. why? why do they need to buy and sell corporate stocks when they sit at the federal reserve and they are serving our country's or working in the u.s. senate as elected people? why should they be engaged in a stock trading? it boggles my imagination. nobody thinks they should be allowed. >> as far as i know, i am not aware that the original fed presidents in question violated a law or a room, which says something about the laws and the rules. as you do get nominations from the white house, do you think that way they fed handled this should reflect on who is chairman, or for that matter, vice chairman, because i understand lael brainard was actually responsible for overseeing the fed's regional president there has nots. >>. >> in the attention paid by the federal reserve to warrant the -- possible nor has there frankly been attention

paid. i do know what you just said is exactly right, that they may not have broken a rule or a law. those rules and laws need to be clear entrance and and strong so this stuff, if it is still happening today, it will not be happening once this bill becomes law. >> thank you so much. let's turn to the big negotiation on capitol hill. we would love to hear everything he have to say. we heard from your colleague joe manchin, saying he is hoping for a vote on infrastructure as soon as tomorrow. >> i think two bills pretty much together are about ready to go. i am confident that by thanksgiving, president will have signed both. i know the media, i am married to a journalist, so i understand this and i never admonish any journalist on how to do your job, but i know the story always is, "democrats arguing over this or that." but the issue is what we are going to do.

the build back better will be consequential. it will be transformative. already from what we did in march with the child tax credit signed in march, up and running by july, cutting that child poverty rate by 40% already, the biggest thing i have ever done in government in the last x number of years. we will do things that will matter in housing, in transit, in education, in childcare. if you believe in infrastructure -- water and sewer and broadband, it is building a foundation, so millions of families can launch their children into a better life. that is what this bill is about. we have seen in this country, executive compensation go up, profits go up, but wages have been flat. this congress and these two bills were clearly on the side of workers and into fixing that. kathleen: that was the chairman of the senate banking, housing

and affairs committee, sharon round, beginning with bloomberg bucs balance of power host david westin. plenty more ahead. stay with us. ♪

kathleen: time for morning calls ahead of the asia trading day, starting with china.

the pboc does not seem ready to ease monetary policy, and there is a healthy trade surplus. meantime, authorities appear comfortable allowing the index to drift higher, which would provide room for short-term bond appreciation. haidi: and a call from goldman sachs on south korea, saying that services are expected to benefit the most from next year, however, it is largely contingent on how far social distancing measures will be. while private consumption recovered 4.5% in the third quarter, those levels are still 3% below pre-levels. private consumption will become the main driver of growth next year. let's get a check of the latest business flash headlines. shares in draftkings jumped after it decided not to pursue a 22 billion dollar purchase of another company.

sources say the company was unwilling to meet part of npeng's demands. this company is considering selling its 80% stake in a china business. the alibaba act retailer has reached out to gauge prospective buyers' interests. suning needed a bailout in july after its holding company run into financial troubles and struggled with debt payments. sources say carlyle group and others are considering a taiwan operation. shares of the company jumped on the report. its value is seen to be at least $1.9 billion. other potential buyers include blackrock and kkr. coming up in the next hour, is

the worst over for the semiconductors? our guest joins us. that is it for "daybreak: australia." "daybreak: asia" is next. keep it right here. this is bloomberg. ♪ this halloween,

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♪ shery: good morning. we are counting down to the major market open. welcome to daybreak: asia. top stories, asian stocks dipping. wall street delivered a mixed verdict on big tech reports today. u.s. dance china telecom over national security risks and be