juliette saly joins us from singapore. good morning. watching what we are is this down tick and japanese equity markets. they are the only one relevant and asia and trading with australian and new zealand markets shut. a big tick and the nikkei. it was pretty flat earlier. we had japan out of action. we have been seeing a little bit of fluctuation in the japanese equity market. you are seeing a big tick down. this as we see money going into these safe havens. the yen rising quite significantly. obviously, a bellwether for what we see in these uncertain times. the aussie down zero point 8% against the japanese yen. a flight to safety. pressureher downward coming through an equity markets. closedian markets are for a number of public holidays. china and hong kong out of action. we are seeing that down tick in u.s. futures and japanese equity markets. about 40-50 minutes of trade to go. >> juliette saly with the market impact. thank you so much. we are seeing futures continue to slide this morning. the s&p 500 down alongside the dow jones

juliette saly is all over this throughout the night. von volatility has absolutely exploded. ette: those tweets short-circuiting the reflation bid we had coming through in treasury and markets. it's been a wild night in bond volatility. spike following president trump's tweets which came after we had seen those talks stall somewhat. we saw the implied volatility dropped nearly 18 percentage points, his biggest increase since march 12 when we had that massive spike in coronavirus cases. earlier we had had a hawkish hope that we would see some moves in that steepening curb on the back of what jay powell had said. spreaden the reflation pushing to the widest of the year. at one point we saw it widening nearly 128 basis points which was within one basis point of the 2020 hi and the steepest the yield curve had been since november 2016. but it's all been turned on its head and there are still a lot of steepener drivers in place even though the talks have ended. haven't looking -- they average entry point of 74.0 five basis points saying the reaction to the abrupt halt of the stimul

ise with this morning's call juliette saly. juliette: a little bit of a muted reaction.have been seeing some upside. what we are hearing is a lot of these traders on the pound are washing out a lot of this political noise, saying the real deadline here is november. you need at least two months to get some kind of deal through on the new trade terms by 2021. europe says you should be looking at november. if it's clear by early november that there isn't going to be a clear deal, then you could see a 5% decline in the pound across the board. one strategist things we may be closer -- thinks we may be closer to crunch point. he recommends a short tactical position on the pound, versus the dollar, given the risk of a no deal brexit and also a resurgence of covid-19 cases. we heard from another analyst saying, if you don't see a deal by the end of november, that could be particularly bad for pound. they are predicting a volatile month for all currencies due to the u.s. election. also, we had bloomberg opinion columnist -- a bloomberg opinion said the pound isn't even listening

juliette saly has been tracking the details. we were talking about earlier, nobody likes when we hear of big job cuts like this. it is about 8500 total from the hong kong based carrier, more than estimated by local media yesterday. ofs is about 24% cathay's workforce. 26 unfilled -- 2600 unfilled positions will be eliminated. you have seen shares in hong kong jump quite substantially but down about 41% over the course of the year as the pandemic has hit this airline particularly hard. we have jeffries maintaining cathay at hold. -- has maintained a neutral , saying thethay hong kong express unit could take over some of its dragon roots. they say more cuts and pain in the year ahead. worth noting that urb and morningstar still have a buy on cathay pacific. annmarie: juliette saly in singapore, thank you so much. just a devastating how much the airline sector is losing in terms of jobs around the globe. very quickly, we have to recap these breaking headlines from netflix -- nestlÉ. the organic revenue up plus 3%. really on the top

annmarie: juliette saly in singapore. think you so much for that. next presidential debate is in doubt as donald trump says he will not participate after goes virtual. let's take a look at what is going on in the futures market. u.s. equity futures moving to the upside. will we get stimulus? will we not? donald trump says he is prepared for a bigger package. this is bloomberg. ♪ are you frustrated with your weight and health? it's time for aerotrainer, a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. do the aerotrainer super crunch. the pre-stretch works your abs even harder, engaging the entire core. then it's the back extension, super rock, and lower back traction stretch to take the pressure off your spine and stretch muscles. planks are the ultimate total body exercise. build your upper body with pushups. work your lower body with the

juliette saly joins us from singapore.adjusting all over the place from what we heard from president trump last night. you are looking at the responses, and despite , theility in bond markets steepened drivers remain. why are they convinced we will see a steeper yield curve? juliette: we know president trump's tweets put those reflationary bids on their head and cut short the move we had seen in the bond market, and a lot of volatility. there are a lot of reasons you could see a steeper yield curve, they are saying the treasury market reaction to the abrupt halt to stimulus talks is understated, and there are expectations of a biden victory. looking at an average entry point and saying it could be a big deal in the event virus cases rise further. you could see a further steepening of the yield curve on that too. matt: you have other calls on gold, still in play mid election turmoil. juliette: we have been talking about these calls, that there and be a blue sweep, election moves but analysts say do not rule out that there c

juliette saly joins us from singapore. er call blue sweep, a win for biden and harris could mean, this time for morgan stanley. tell us about it. juliette: a blue sweep meaning a biden-harris white house but also democrats in the senate and the congress. it would be a boost to european stocks particularly banking sectors -- banking stocks. biden will increase fiscal spending increasing bond yields. and a potential dip initially on the s&p 500 although they do say that later there would be another dip. saying thatey investor should have a pro cyclical bias in their portfolios. they include whitbread. anna: that is interesting in terms of the european picture. make themany views to market. juliette: they are looking at precious metals and what a potential blue sweep would mean for gold. initially, you would see a 5% uptick in the stock gold the price but if there is a more contested election, you would only see a 2% in in the price of gold. a trump victory would be the most bearish. that would drive the dollar higher. jp morg

juliette saly joins us from singapore. time for european renewables, what is the focus, juliette? juliette: absolutely. this is a call from jeffrey's. we know that it could lead to more physical spendings, which jeffries is saying could be higher inflation. they are looking at potential performance from european renewables, on the expectation she would seek a bid -- see a biden white house. the outlier scenario could be this unclear disputed election hanging in the court for multiple weeks. in that sense, you can see underperformance coming through in stocks. the harder expected could be u.s. consumer names because higher u.s. corporate taxes could hurt. and also, you could see higher west texas hurt luxury wealth hurt -- wealth taxes luxury players. anna: what about looking ahead into next year, and small or medium-sized businesses? you've got a morning call on that. juliette: yeah, i do. this is one from citi. life goes on for equities and traders after november, so they are looking ahead to 2021 and saying global small

with get the morning call juliette saly from singapore. out the possibility of a blue sweep. ais means joe biden wins reagan like landslide. how does that affect asian stocks? juliette: bnp paribas and credit suisse saying this could boost demand for asian stocks, but it could be more negative for the region. they say it is on the back of expectations that a blue sweep would be an increase in fiscal spending, and trade flows reignited, which would be good for stocks in the region i am in. we have been looking at the index that shows asian stocks have been loosely tracking the election odds. we are pointing out as you did earlier that polls have been wrong before. we are seeing a spike in volatility trade, such as yen options should there be a contested election or do not see a clean blue sweep. anna: interesting to think if a blue sweep is risk on for assets, and you are looking at conflicting ideas if a biden win would boost u.s. equities. sayinge: yes berkeley is there could be a modest boost for u.s. equities, that is a different call. t

morning calls.r juliette saly joins us out of single or.stsff with what are saying about the pboc's fallpts to let the yuan further or stop the recent rallies. what are you seeing? liftsolutely, this move to the 2-year-old role making it easier to bet against the yuan. newman,g to hsbc's fred it is not a game changer but a tactical move he sees to the upside. the rule change is not seen as a signal of discomfort with the recent gains. what could this mean for other currencies and asia? --in asia? they are more susceptible. uan has giveno back of a lot of the gains we saw on friday. it strengthened to its highest levels since april 2019. some weakness coming in today but some analysts saying it could be short-lived. out: goldman has some calls -- what are they? >> they are saying that you could shorten the dollar if we see the increasing likelihood of through ine coming the presidential election and if we have favorable outcomes on the vaccine. the dollar index could hit 2018 lows. and if you are looking at volatility weighted currencies, lo

juliette saly joins us from singapore. kick it off with cathay pacific announcing thousands of job cuts. what has been the reaction from analysts? juliette: we never like to see job cuts. there has been so many in this pandemic. cathay pacific coming through with 8500 job cuts, more than what has been reported by local media yesterday. 5300 of these jobs are local. another 600 offshore, 2600 unfilled positions will be limited. we had a couple of houses, morningstar and others, upgrading cathay pacific to a buy. we have seen shares jumped the most today in a month. but another analyst maintaining. them at a hold. their recovering hinges on a bubble. saying,what jeffries is this will be the only kind of thing that gets the airline on some recovery. anna: let me ask you about another theme that has been strong during the asian session. looking at the yuan and trades around the yuan. there? the story julian: we saw the onshore much the offshore at its highest level since 2018. a lot of analysts saying, does this mean you will s

juliette saly joins us. what is the play in tokyo? what do we know? had this happen before. this is the worst halt we've seen in its history. we've heard from japan exchange which runs tokyo stock exchange. they will try to resume trading tomorrow. they are saying it is a hardware problem. trying to make sure that people don't think it is a cybersecurity attack. investor sentiment is on edge after we saw hacking affect the new zealand stock market in august. the stock exchange buying and selling thousands of shares. we have been seeing some movement and derivatives including futures. other markets in the country including exchanges are also sustaining trading. this is coming on the day that investors were supposed to react to the survey that came out 10 minutes before the market was expected to open. showing an uptick in the large manufacturing sentiment. still well off of pre-pandemic levels. this is going to affect investor confidence. we've heard from a strategist at tokyo security saying this is very problematic. investor confidence gets impacted. you could see some negat

juliette saly joins us from singapore. lso saw a weaker fix in the pboc, and we see this moving the yuan. juliette: we certainly do. remember, this is after the onshore came back after the holiday and strengthened the most since 2019. this lifting of ththe rule showed they are putting the brakes on some of these recent appreciations. ofy stopped short encouraging declines. that is seen by many as a move they will tolerate some strength. this could push the yuan back toward 6.75 to the dollar. it provides an elegant way to mitigate the appreciation of the yuan without upsetting a belligerent white house in the middle of an election campaign. annmarie: wow. what are other analysts saying about the move? juliette: we were talking to fred niemann from hsbc on bloomberg radio earlier, and he said what happened over the weekend was a tactical move from authorities. he does not see it as a game changer. he does expect there will be more strength coming through in the on and offshore yuan, but you will see the recent rally blunted

juliette saly in singapore, keeping on the markets. those are the markets andreas wants to belong.ing up, confusing and contradictory. a lot of speculation over the weekend. we'll dig into the details next on the timeline from trump's friend you last week. this is bloomberg. -- journey last week. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. annmarie: 6:30 a.m. from london. i'm annmarie hordern with manus cranny live from dubai. >> it has been a very interesting journey. i learned a lot about covid. i've learned it from going to school. this is the real school. this isn't the "let's read the book" school and i get it and i understand it. it is a very interesting thing and i'm

juliette saly has read the whole note from start to finish. good morning. higher chance of more fiscal stimulus in the future. that we that volatility saw happening during the tuesday session in the u.s., as the polls are indicating, there will be a biden win. it's likely that this will increase fiscal spending. even if a pre-election deal can't be reached, biden's is making it likelier that a more substantial stimulus could be eventually agreed on. more stimulus action will counteract the rise in taxes. it's probably net neutral for markets. when it comes to another indicator of markets, we have been watching this biden basket. showing what basket of stocks, if we see a biden of presidency. it jumped to a record high when we saw that weakness coming through in the s&p 500. certainly a lot of movement in markets. there will be this blue sweep, that will be more positive for the economy and for the stocks related to some of the equity markets. despite this tweet storm from the president of the united states, the reflation trade lives on another day. juliette:

thank you to juliette saly in singapore.nt donald trump returns to the campaign trail, saying he feels powerful. after his recovery from covid-19. . . we discuss that next. futures andny nasdaq many features a little softer -- mini futures and nasdaq mini futures a little softer. this is bloomberg. ♪ - [announcer] imagine having fuller, thicker, 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. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music) ♪ annmarie: good morning from bloomberg's european headquarters. i am annmarie hordern. this is "bloomberg daybreak: europe." here's what you need to know today. divide and conquer. u.k. prime minister boris johnson hopes to stamp out the virus region by r

. >> thank you, juliette saly and singapore. let's get the first word news's. the top stories for you from laura wright in london. are back on.ops the white house has versed its stance. with donald trump wanting a comprehensive deal. it came after nancy pelosi pushed back on individual measures for different parts of the economy. placing people on maximum alert as coronavirus cases top 18,004 second day. restrictions are being added in grenoble. cinemas face stricter controls. italy and spain have reported the most cases since april. warnings of leading a sustained increase. potentially closing restaurants and bars. there is a growing backlash over the rules and anger over boris handling of the pandemic. global news, 24 hours a day powered by more than 2700 journalists and analysts who read this is bloomberg provide >> thank you. laura wright with your update. the u.s. government has taken an equity stake in a company -- the company received a 25 million dollar investment from the u.s. government. brazilianvelop a nickel and cobalt mine. cobalt is an important

very much, juliette saly joining us from singapore with your morning call.announced it will suspend operations at all of its u.s. and u.k. theaters. affect aboutwill 45,000 employees. the company said in a statement released just this morning after earlier news over the weekend around these closures. it is a different story for the movie industry and the cinema going industry in china. ked in a $30 million despite a capacity limit. he thinks chinese consumers are already more than comfortable heading back to theaters. restrained to 75% thanet we did 25% better our last year which was last year. that is clearly an idiot -- an indication that people feel safe and they are safe. they want to remove -- they want .o resume their lives and china in particular, and asia in general is ahead of the western world in that. smoothly in ae as lot of places as in china. at the same time, around the world, you have a more accident -- existential question as to whether businesses can survive. does that mean there are expansion plans in china? >> i don't think the message fo

from get your morning call juliette saly standing by in singapore.ll about what happens if there is no deal on brexit. the pound has been whittled in the asian session. and now things get more complicated. what is the latest? juliette: they do. the pound has been rising in asian trading around a bloomberg school that officials are close withviving talks officials. there has been some political posturing from boris johnson on friday regarding a weaker pound. the main issue will be the u.s. election. againsteeing hedging the pound. a lot of traders saying they will mute the brexit noise after four years of discussion until the contentious u.s. election is over. will be asaying there no deal brexit and you could see a 5% decline in pound across the board. we are also hearing from a strategist that things we are moving towards a cash point and november will be key for the pound. take a tactical position regarding the pound. have also heard from another analyst saying if you do not have a deal by the end of november, even more volatility ahead. they expec

juliette saly joining us from singapore.e looking ahead to the start of november with interest. let's get a bloomberg business flash. goldman sachs is resuming job cuts, setting to eliminate roughly four hundred positions. the longevity of the position is forcing the biggest bank in the u.s. to wait out the turmoil. wells fargo, citigroup, and j.p. morgan are all planning cuts. american airlines and united are starting to lay off thousands of staff to reverse the job cuts if the government agrees to provide additional aid in the next few days. american is cutting 19,000 while american is laying off 13,000. the rate pressure. google has line out touched -- has launched new 5g cell phones. changes to its features and a lower price but the handset more directly in competition with the lower end phone. that is your bloomberg business flash. much.thanks very european leaders are meeting in brussels for a two day summit. the growing concerns that the recovery fund could be delayed as the phase stumbles over the rule of law conditi

juliette saly joins us out of singapore. we will kick it off with election calls. ayssays -- one election fears could be a buying opportunity. juliette: this is morgan stanley's chief equity strategists mike wilson, who correctly called the correction that we saw in september. he said many are saying that if we do see this contested election, he is thinking we may not get a clear winner until thanksgiving. buying opportunity to dip into the s&p 500. he said no matter who wins the election, they will unleash more economic stimulus and that would drive asset prices higher. but until we know a clear election winner, markets could get defensive. three weeks for investors sentiments to be rattled, but he says that could be your buying opportunity. profits forbout clean energy and the link to the election? juliette: this is a call coming through from schroders. they have an hsbc webinar that auld -- that we could see reversal in environmental policy if there was to be a biden victory. that could be good for some of the clean and green energy stocks. is saying they could r

i am juliette saly. welcome to "bloomberg markets: asia." >> i am rishaad salamat.imism of a stimulus deal in washington. the white house lifts its offer while nancy pelosi says she is hopeful for agreement this week. >> signs of life. a 16% gain in revenue last quarter. india may be reviving in after an unprecedented economic contraction. >> casino operators in macau expected to post a loss in the third quarter, gaming revenue plunging 90% for six straight months. liette: stimulus talks, still in focus, but we are seeing u.s. futures extend overnight gains. the msci asia-pacific index, up by about 0.5%, mixed movement in terms of tech players, but we are seeing the asian infotech sector rising. shipmentsctor increasing 20% in the first day of the month, and all eyes on the onshore yuan, matching the offshore levels. we had a weaker than expected fix from the pboc. this will raise questions whether the pboc will act to slow some of these gains. rishaad: absolutely. bangkok,hat open in protests taking place on the streets, antigovernment protests , and those groups a

juliette saly with your morning calls. let's get back to strategy.evin, i wanted to start with your thoughts on china right now. it is golden week and we see the chinese population in under nine months or so of being stuck inside seems to be back on the move. levels forjewels -- golden week are less than last year with 25 million people traveling domestic -- domestically. how do you invest around recovery in china? >> china has been among our core investments within our global equity funds. what is happening is quite remarkable. managingry has been very well, the pandemic. it was the first to be affected but the first two get out of it as well. very strong recovery. a quitebined with modest fiscal option, quite modest monetary options, it is on a strong path to recovery. first exports, now toward services. the way we invest, we invest mainly in local domestic plays, long-term structural things we chinese consumers, that is true for electric vehicles, commerce and e-commerce stances as well. there are lots of things to be done in china. best where do

let's get to juliette saly in singapore.eaction to the news the president trump and the first lady have contracted coronavirus. you thought we had have a quiet day with half the markets closed but then japan coming back from being closed yesterday. how has the markets dealt with these unusual circumstances? >> we thought we would be talking about the return from that trading hold in tokyo yesterday. that's what we're focusing on in asia. a number of markets closed. china, hong kong, south korea, taiwan. this is the last half-hour of trading in japan and australia. a sharp turn downward. the nikkei had been trading range bound and the volume a little higher than what we were expecting. trade up by about 40% above the 30-day moving average. as you can see, the two main markets that were trading closed lower while you saw a lot of money going into the yen as we would expect. particularly that move in the aussie general. -- aussie yen. we saw huge volatility as you would expect. one week implied volatility for the japanese yen.

i am juliette saly. rishaad: this is a look at out of stories. the final face-off. trump and joe biden sparring over covid-19. each man accusing the other of underhand tactics. juliette: investors weigh the debate and potential progress of a stimulus deal in washington. nancy pelosi says we are just about there. rishaad: china's top leaders prepared to plan the next five years. we will focus on greater self-reliance in the face of increasing tensions with the west. it was a much more sanguine presidential debate this time in nashville we are seeing u.s. features fairly steady and pretty flat in the asia-pacific index. not quite what we saw after the first debate. we have also been hearing from china after we saw the on and offshore yuan reached 2018 this week. they are saying the yuan ride is being driven by supply and demand. we are looking ahead to that five-year plan. the kiwi coming back a little bit. earlier losses,