we are going to have signals on the pboc. like 900 billion dollars worth of funding shortages, raising concerns about tighter liquidity. the pboc is slated to offset most of $91 billion of policy loans coming due this month. what is your take on that? yes, right now, the current for threence is -- purposes. number one, to keep interbank liquidity station -- liquidity condition stable. close to the policy right anchor, which is the seven day reversal rate at 2.2%. intendc will in -- will to inject more short-term liquidity. secondly, to support credit growth to be stable, not really a sharp cliff off previous levels but more even paste of deceleration of credit growth. we estimated on a monthly basis we still need at least 250 billion renminbi of medium-term liquidity injection to support credit growth. lastly, it is about financial stability. as you can see, a couple credit events into the market has by a lot ofhuffling financial institutions. liquidityar chairman demand, it might come to the market to bar more. that could pu

pboc: what does that do to if it is full on bull mode?s the pboc move to a more normalized setting in 2021? guest: it looks like they will continue to apply more stimulus, more support in financial systems. get that banking system to develop the bond market. pressure not got the of the second wave that europe has, that the u.k. has, and that the u.s. has, with the increasing death rates we are seeing. annmarie: i wanted to ask you about the yuan, because some businesses are saying profits and export orders are coming under pressure because of the strength of the yuan. do you think the pboc is going to have to step in? guest: they will inevitably have to step in. a lot of this is being driven by inflows and the fact that they have such a large trade surplus. you cannot really stop the inflows. expect it to continue. expect to see some intervention because the pboc will not want to see too much yuan strength. but it is much stronger than it has been the last year, up about 6.55%. that is quite meaningful. pay close attention to it. i found

thank you jim mccormick of natwest markets , talking about markets, inflation, and even pboc.y appropriately which was heard from any of our viewers -- i think that was what we call an open mic. coming up, a first vaccine approval is reportedly days away in the u.k., but with full coverage of the population months away, his private testing the path to normality? we speak to the chief executive of the company hoping to fill the gap. it is coming up shortly, and this is bloomberg. ♪ francine: this is bloomberg surveillance. a bmr is cutting about 200 -- 2800 jobs as it retrieves from parts of his investment bank. the company is targeting for .7 billion euros of cost cuts as it scales back its international presence. amro spoke to us. roleat fits our plan of reduction through 2024. it is an amount can tribbett into the 700 million of cost savings, but it is roughly what we have executed over the past four years and are doing steadily over time through attrition retraining our staff, so it won't be all that once. it will be steady and deliberate. >> good morning to you. steady, de

the pboc is indicating it is

haidi: what does it mean potentially for the pboc?as talk about how they unwind the stimulus measure. what do policymakers do to ensure that it is managed unwinding? jian: right. indeed. rate claimskets in have been a concern about a potential pboc tightening. say beginning of next year. beenentral bank has talking about active strategy. in earlier we drew stimulus in september. recently, particularly in the area of financial risk, and also see this made us withdraw for monetary policy easing is less likely in the short term. if we look on the financial risk side, the government has tightened the housing market in july and august. house price development has really slowed. and that what has been the concern for the chinese government. and in the area of inflation, we have seen the pace of decline, it has been faster than expected this month with the data risk belief that last week, .5%. seen that.lation has we see it is expected to see some deflation in the first quarter. pboc,ing these in the more pace with the potential for the with

i wouldn't say that the pboc at current levels is getting worried.rt reaching a point to that it becomes quite not in recovery,the chinese then it would be something that the pboc i am pretty sure has a plan b. it's not forget that pre-trade wars, dollar china was trading at significantly lower levels than we are currently at. i think it is within the realm of possibility that we are going to see dollar china at 6.50 or even 6.40 that the pboc getting too anxious about it. jonathan: getting closer to it. great to catch up as always. staying on top of the price action this tuesday morning after a huge move in the last 24 hours, equity futures shaping up as follows. the nasdaq once again underperforming. that spread between the nasdaq and the russell is unreal. we are down 1.5% on nasdaq futures, up the russell by about 1.8%. is the risk where the perceived safety once was just a couple of weeks ago? tom: it is not only that, but absolute or relative return. in different parts of global wall street, you are worried about absolute return. in some cases,

hkmaurse, hong kong or will stand ready to cooperate with the pboc.a legal framework being considered or put together? >> if you look at the usage of kong, web in hong don't see that as. a hurdle. rishaad: that was nelson chow speaking on the sidelines of hong kong fintech week. s is ong of, david ingle standby with a big guest. take it away. david: to your point, we will pick up on this conversation around fintech week, what their plans are. they have a massive presence already and how they see the sector evolving, not just in asia but all the other exposures and interests around the world. stay tuned for that exclusive interview with bill weathers from standard chartered. this is bloomberg. ♪ erg. ♪ david: you are watching "bloomberg markets: asia." i would like to welcome all the listeners on bloomberg radio for this exclusive interview. weekend.g kong fintech one of the people who joined and participated is none other than bill winters, the group ceo of standard charters -- standard chartered. he's here at the standard chartered building with me.

the pboc says international are recovering. the mainland economy has regained all losses from the first half. the aussie governor setting to announce undistinguished tool. new stimulus to a. this will allow them to further cut lending rates. the program could start in weeks and it is seen as a key step in cutting the official cash rate into negative territory next year. and the turkish finance minister has already better the economy into further chaos. his resignation follows the removal of the central bank chief who was fired on saturday following the collapse of the lira. the turkish terms he has lost half its value over the past two years. they tried to approach the royal palace in bangkok. demonstrated wanted to serve it editions, calling on the king to except changes to the monarchy's power. medical services say to people and one officer were injured. protesters abandoned their march after the police took action. will news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts

we had a stronger-than-expected fix from the pboc for the first time since october 23.rength in the currency being seen as continuing china's economic rebound and thanks to attractive bond yields in china drying overseas funds and investors, but as you say, it remains to be seen how long the pboc wants this to continue. when it comes to the overall equity rally, that is flowing through into heirs. we are looking at global stocks nearing all-time highs but mark this biden whilst bomb could be good for global equities, he does not yet as positive for the american market due to the fact that he says these expected tax increases under a biden presidency are going to hit the very people that are likely to invest the most in wall street. the people who earn more than $200,000 a year. he says that wealth effect will come into play and if the people who invest in the stock market expect it will be hit with higher taxes and they will restrain from investing. his use, in contrast to some global investors, says biden will not be able to raise taxes easily with a potentially split

i think the pboc is addressing these issues. you are looking specifically at equities? we do have u.s. equities okeene peers.pensive tha n their what are you looking at in asia? >> i think that we continue to like equities over fixed income both because the monetary policy situation around the world is flattening yield and forcing investors onto the risk spectrum. and then the covid vaccine has been a meaningful development. of returngive a sense to normalcy over next year, which the world has craved. in this instance of the vaccine coming onto the market, it should push investors to want to be exposed to corporate earnings growth over the next year and they do so by owning equities, over fixed income. continue to favor equities over fixed income and continue to like north asian equities over u.s. equities given both the disconnect and north asian economies have done a better job with the kobe containment, especially in light of new infections in europe and the u.s. juliette: there are some lofty calls for indexes tickets are pr

the pboc has kind of gone out of the way to maintain a rates premium for the rest of the world.bearishrket, it dollar. on thein bearish dollar rest of the world. caroline: airbnb is going to be one that potentially investors can get into. it has filed for its ipo. it is seeking to list on the nasdaq. we have seen revenue numbers coming out, $4.8 billion, up versus 2019 numbers. -- their bankers to include goldman sachs, morgan stanley. joe: we are back with our guest. i want to dive more into this question of what a vaccine reflation looks like. airbnb filing for its ipo. we have seen tech and these growth stocks really come off the boil over the last couple of months. of vaccinehe sort reflation, does this mean that at some point we go back to precrisis trend growth, at which point the low growth tech rally resumes again as people pile in -- pile in for their secular characteristics. naufal: a 50/50 split with harris being the tiebreak, even in that say ariel -- in that scenario you have centrist store conservative democrats have any kind of swing vote. platform heeconomic rele

the pboc billion to the financial system today, seeking to ease liquidity tightness in the final month. , a great story on the bloomberg about how tech stocks in singapore are getting more momentum and we are watching closely oil ahead of the opec-plus key meeting, below $45 afalling barrel, getting toward $45 a barrel as we see him formal talks over the weekend failing to reach consensus on the output hidke delay. having athe oil major torrid time on the market, 9.4% lower. the trump administrator poised jamaica to blocked from u.s. investment due to military ties. cnooc not catching a bid, 9.4% to the downside. against a, the open backdrop of protests, this time outside military bases where protesters were throwing yellow rubber ducks at soldiers and painting them red. strengthening fractionally, but we have the baht set for a second monthly gain in a row and certainly something the bank of thailand is concerned about and has been taking steps to make it weaker. .8%500 on the futures, down -

i think that since the of theties are aware risk based on the recent conference of the pboc, i wouldom the expansionary policy adopted this year. ,aidi: all right, ding shuang economist at standard chartered, joining us with his views going into the inflation data coming up in the next hour. plenty more analysis ahead on those numbers. our china economist will be on bloomberg markets, the china open, to break down those numbers. we have breaking news when it comes to brazil's health agency, halting clinical trials on china's corona vaccine -- coronavirus vaccine after reporting a serious adverse event that happened at the end of october. the study was interrupted in accordance with regulations while they take a look at the risk reward of continuing that study. no more volunteers can receive the shot. it has been rolled out over parts of china, sometimes in an unofficial way. we have private hospitals providing them as well as state owned companies. sino farm giving that shot to people despite it still being in clinical trials of the third phase. you are watching "daybreak asia ." we

guy: the pboc has been quite creative in the way that they have used monetary policy.t hasn't used the traditional levers that banks of the west have been using. used digital currency to stimulate part of the economy. do you think we ever get that far? peter: no, i don't think we do. it is possible. i think the command and control apparatus is more familiar to them. i think the fed directly turning on the credit spigots to certain industries and not to others is something the fed is sort of doing in a broad brush stroke now with their different programs. but to target at the way the pboc has would be very uncomfortable for the fed. that's my thought. alix: peter, it has been so great to talk to you. we've loved having you on for this half-hour. thank you very much. tune in for a special the fed decides at 2:00 p.m. in new york, 7:00 p.m. in london. as we had to break, a live shot from georgia, where ballots are being counted. this is bloomberg. ♪ businesses today are looking to tomorrow. adapting. innovating. setting the course. but new ways of working demand a new typ

sophie: the pboc is possibly one partner they say they are signaling.aken to further that goal? nelson: it is being tested in multiple cities in china so if the pboc has a plan to roll out cross-border for china, hong kong hkma will welcome this position and we stand ready to cooperate with the pboc. sophie: part of that readiness, is the legal framework being put together? nelson: you look at the usage of rmb in hong kong, we have been using it for years. we don't see that as a hurdle. shery: hkma's chief simtech officer, nelson chow, speaking with sophie kamaruddin. we have a big guest coming up later. do not miss our exclusive interview with a group ceo of standard chartered, bill winters. 10:45 a.m. hong kong time. it has been a difficult year for banks. up next, we will take a look at what the policy priorities should be for whoever wins the u.s. election. our guest joins us shortly. this is bloomberg. ♪ >> perhaps a president like joe "makingho is focused on and compromises, might be a very positive outcome going forward. >> i have been in a room

the pboc injects $30 billion into the financial system. this pushes the factory gates to a three year high. we discuss that and what it means for the broader investment scene. this is bloomberg. ♪ anna: welcome back to the european market open. futures point to the downside but what amounted has been. looks as if we are on set for a record month in november. let's get a bloomberg first word news update. here is laura wright. laura: iran says it will not fall into the trap of suffering future talks with the u.s. over the assassination of a nuclear scientist killed on friday. he played a major role in iran's nuclear research. theas not commented on allegation, but previously accused the scientist of masterminding a project. brexit's trade deal could be done in days if the e.u. is willing to compromise on fisheries, according to dominic raab. it is an upbeat assessment as talks continue in london. if negotiations fail, millions of businesses and consumers could face higher costs and disruption to supply chains. voters have rejected two propos

victory, how does that play out for the yuan and the pboc?> i would say players or investors have already anticipated a biden win. the yuan hasy rated so strongly as they anticipate he would win and they would be in a better relationship with china. personally i think they are too optimistic. it is not that clear biden will take that road. his approach could be different than trump's approach, but i think he will still take on china. are hopingvestors there will be a relationship between the u.s. and china. probably if that would be the be the story could if biden wins. >> do you agree with what strategists are saying, that biden is bad for the ruble but good for the peso? general, if biden wins, the dollar would move a bit further in the short term. that is probably because of the stimulus package for the economy which could give that extra boost to the economy. in the event of trump, you could see more dollar -- at the same when you get into the whole story, real yields will stay negative or even go more negative. that will weigh on the dol

the pboc believes the global economy is recovering. the mainland economy has regained all losses from the first half of the year. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. >> china's outlook. the country continues to show the payoff for swiftly controlling the coronavirus. more analysis on that data coming up. and an exclusive interview with autonomous of an driving start up. it will take on rivals. this is bloomberg. ♪ ♪ may be moving forward with his transition team but president trump's refusal to concede along with his promise battle in the courts threaten to delay the process. we will discuss this more with jonathan labor -- jonathan lieber joining us from washington. we continue to hear from president trump through twitter how this election was stolen from him. how long can we expect the legal battle recounts to go on? how much impact will this have on the transition process? jonathan: th

concerns about whether the pboc step back with support. concerns about defaults.nd concerns about a cash crunch as banks have to repay into bank lending. pressure on china's bond market. tom mackenzie in beijing. south africa's president has reiterated his reason to reigniting raining and the country -- raining in this country's skyrocketing debt pile. the president spoke to bloomberg in johannesburg. >> our investments have been going down in relation to our gdp. one of the reasons why i, right at the beginning of my tenure as president, focused on attracting investment was to try to correct this. we are in the process of doing so. we set ourself a goal of attracting 100 billion dollars into our economy in five years. we are already more than halfway there. bymitments are being made companies. many of these commitments are being actualized. trusting investment is in an effort to increase investment vis-a-vis our gdp. i think we can turn things around quite significantly, but sector,means the public which is government throughout its various entities, needs to dem

guy: there's some reporting that markethat called on the pboc, asking questions. sure what those questions are going to be, but this story is also getting caught up in the china-u.s. trade tension. the chinese pushing back, making sure that alibaba and aunt don't -- and ant don't get caught up. this is such a huge ipo. a few years ago it would have taken place in the u.s.. the fact that it is not is hugely sick. alix: it's -- is hugely significant. that it speaks to the fact decoupling in the tech world can still happen. how do you have any kind of cooperation when there's national security involved? it feels like both sides of the aisle are pretty firm on that stance. we have seen these two tech markets developing in very different ways, with more of the action coming right now from china. guy: china trying to do its best at the moment to figure out ways of getting around the restrictions created by the u.s., when it comes to huawei. we are going to discuss all of that with wall street veteran charles myers. the signum global trading chairman will be joining us.

even if you look at china, the latest find show -- the latest financial stability report from the pboc, they are concerned you could see a 10% rise in the rate. if that happens in a supposedly good growing economy, all of the other central banks need to monitor this. how you get growth in place and actually avoid bankruptcies coming through government support, through a vaccine, this needs to happen very quickly, by this time next year. i think we need to do a double take on where the rates are and hope they are not higher than where they are right now. jonathan: let's get you in trouble. we can try to do that for at least 60 seconds. i woke up this morning and heard the word default, and china in the same sentence. what is going on there? geoffrey: what is happening there is very isolated in the bond markets. let's be clear, it is something that china has been trying to risk pricing into credit markets, and to bond markets. be aware of the red flags. this is a repricing going on which is very necessary, but at chiname time, i am sure once to keep things in check. ds long as there is a

just to give you an invitation, the pboc, the central bank of china, started exploring this about five years ago in the same way that facebook is exploring a private stable coin, started about four years ago. well advancedinly but also good reason for us to be attentive to the way in which monetary policy can be secured, monetary transition can be safeguarded. those are the reasons why we are notng ahead diligently, unconsciously. we will be prudent, we know it will not replace cash, but my hunch is it will come. >> there has been a lot of central-bank resistance which does not look to me like it will go very far. i was interested in what you said about autonomy. is that a main driver for the ecb? the main driver is to respond to our customers. what do the people of europe want, how do they want to pay, how do they want to use payments ? euro arear in some countries, states, the use of cash is significantly declined to the benefit of digital payments. if you look at a country like sweden, for instance, the netherlands, it is moving extremely fast. >> and the pandemic has accelerated it

the pboc has not done as much in terms of qe or rate cuts.tead, they have been very smart about giving credit to different parts of the economy. recently they did a digital currency program, where they gave digital currency to all of the residents of a certain province. that digital currency could only be used to buy things in certain shops, so it was very targeted in the way of introducing credit to the economy. that could be the curveball in all of this, whether other countries around the world do what china is doing with digital currency. alix: and also what they are doing with the virus, asia setting down in a way we did not see in the west. just going to have the best and most firepower to fight the virus, lackluster growth? and how does the dollar factor into all of that? bilal: overall, north asia i think is the standout here because they've dealt with the virus very well. particular china has a lot of firepower, and they know how to run a variable state directed economy, whereas western economies are just learning to do all of that. i

when you think about the way the cbrc in china regulates the banking system and the way the pboc looksings you can't have an unregulated micro lending platform with no capital touching half of the unbank dr osh half of the bank population in china ant financial has 730 million users. if china is going to roll out a digital currency the question is does the pboc want to control its digital currency or do they want to let ant group control the keys to the kingdom? my view is that this became something let's say -- a question of the highest power and i think xi decided to execute his power at this most embarrassing time for jack mao. >> i just want to go back to the u.s./china relationship which, kyle, because you said that the expectation -- we saw this in the chinese currency as you mentioned, the expectation is that biden would be -- what did you say -- softer, i guess, on china or not as confrontational perhaps on china i think the way that he said it is that he would work with our allies more to confront china so just a different style i wonder if that could be more effective because

seems to havean calmed everyone down by being a bit stronger after some fixing from the pboc. is really something for everybody this morning. this is pretty much how the week will go. it will be difficult to read how the events will play out. people will be anxious about risk and how long they want to hold onto it. that is why we are seeing some of the erratic trading today. indications that it will be a very tough week. rishaad: we have data in asia. election, which some have described as the most important since abraham lincoln. , this is the that question of the day, which of those is perhaps the most fearful to investors? certainly, the election code, depending on which way it goes and whether or not democrats have control of all of the houses or if there is a split between the president controlling one area and another party controlling another, all of those could make the election extremely important for markets. how big the market movements were on the day of the results. u.s. stocks dropped 5% and then recovered all of the losses within the space of a few hours. certai

juliette: as you mentioned in terms of whether or not we see further stimulus, the pboc indicated it could be exiting from some of the heavier stimulus. when we look at the strength of the currency, we have been talking about the june 2018 highs. a chart showing the strength we have been seeing. how much further do you think authorities are willing to see this appreciation? >> we are still going to be looking at the broad dollar trend to gauge where the rmb is next year. our best case is the dollar will still in 2021, reflecting this more fundamental few -- fundamental view. in that environment, you see the dollar performing a little bit on the weaker side. we have at the margin a reduction of geopolitical tension here. that should put a little more pressure on the dollar. if that continues next year, i think the rmb will be compensating for that. it will be strengthening versus the dollar. i think that is going to be the biggest driver. if we stay on a mild downward trend for the dollar, we could easily see another 3% to 5% appreciation in 2021 for the rmb. rishaad: thank you so muc

economy and maintaining that the fed [indiscernible] meanwhile, you have the china pboc looking to normalizee policy in china. you have seen china rates move a bit higher while the u.s. has been contained. that reflects the relative performance of each of the economies. china has been one of the stronger economies coming out of this recession. and remains so. it is interesting how the wheels have moved a bit higher in china. and providing some interesting opportunities for investing particularly in credit markets. we have got many known unknowns. one of them is inflation. the common narrative is there is unlikely to be inflation in these economies for a while to come. given how we are seeing yield curves steepening and a move up, could you say there is a big surprise waiting over inflation next year? >> it is interesting that markets are becoming a lit more confident in seeing higher inflation in the years ahead. something like a u.s. 10 year spike in inflation rate, that fell to 60 basis points in the first quarter of this year. aroundthat indicator is 1.75%. year expectation. that is what

regulator, the state administration of foreign exchange, the foreign-exchange regulator under the pbocmmoned jack ma and other executives of the ant group. and according to the posting by the government, it was a supervisory interview. no further details were given in that announcement, but people familiar with the situation are telling bloomberg they were told those executives, including jack ma, were told it will be treated as a financial holding company, and therefore, they will be subject to regulations regarding capital and leverage similar to banks so would not just a technology company. it's a financial institution. it's a bank. senior executives will be under increased scrutiny as well. haidi: we have all heard about the different types of incredible demand for these highly anticipated ipo's, including the liquidity situation. and the demand for the hong kong dollar. what are we seeing? christian: incredible demand. this starts trading on thursday in hong kong and shanghai, and according to people familiar with the situation, saying institutional investors are buying shares at