the rbnz has charged ahead.ight player like that depresses volatility and curbs -- deters foreign investors and bank earnings as well. volatility is much greater than japan's, but it is declining. raisevernment agreed to -- purchases to 60% of the market as well. this is an interesting situation for the rbnz. it continues to grow. >> paul allen in sydney with the latest on the rbnz. malaysia's record budget may face a tough path to approval in parliament. opposition parties are urging the finance to allocate more andy to a covid-19 fund improved social initiatives. >> the announcement has been -- and recognize the issues we face .oday it is the largest budget ever in malaysia's history. people,support not just but also the economy. it will allow us to fight the pandemic. it is highly focused on sectors that will give the highest impact. the other point i want to talk his own health care. we are spending a lot of money to ensure the government is willing to pay. >> an aggressive budget requires rigorous spending.

as soon it can almost, rbnz is going to move to negative rates.this auckland outbreak somehow remind you as policymakers, remind investors that may be it is still an issue that is alive and well, an issue that is on the table for rbnz? >> i do not think the reserve banks ever forgot it. we have gone to pains to explain to people we are crowding scenarios and not projections of certainty. markets to be thinking forward. they know what we have to achieve. they know the instruments we use. i really do hope they are watching the same information. growe economy continues to and do what it is doing, today's news around the coven just puts -- the covid just puts it back into perspective. be prepared. do not run around on predictions. >> how much are you depending on the new funding for lending program to give the economy the additional stimulus it will need to keep the recovery going and maybe again there will not be a need for negative rates if it does its job. >> one would hope it is a beautiful world and the sun comes up and covid goes away. we could

kathleen: he also added the rbnz is not being asked to target home prices.led this saying the central bank was responsible were ready to work with the government but clearly defending what they have done so far and what it means in terms of helping to boost growth even if you are concerned about housing affordability. as we continue to monitor economic recovery, in terms of resilience, we heard from li keqiang giving a pretty up beat view as to growth prospects for next year. kathleen: he certainly did. people have been wondering about the people's bank of china. sees theer said he economy returning to its proper range next year. i want to pull up another chart, just looking about how china had that very unusual drop down in growth and now it has shot back up to just about 5%. he says china's macro policies will remain stable, effective, and sustainable. in particular, the strategy will allow consumption to lead growth. people criticize them. they'll open up to foreigners and we will absolutely not pursue a trade surplus. response toonly a president trump. i

the rbnz governor is said to announce a new stimulus tool aimed it driving borrowing costs.s on wednesday. the program is seen as a key step toward the rbnz, cutting the official tax rate into negative territory next year. the prime minister of singapore has offered a pessimistic view of the post by race economy, saying the economy is unlikely to pick up in a vibrant way anytime soon. some sectors are showing improvement but others are expected to remain in would because suspended animation. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. shery: let's get a quick check of the markets. we are seeing a relief rally across asian equity markets with asian stocks at the highest 2018.since february the nikkei at a 29 year high. the korean kospi gaining ground. the march in for the asx 200, which is gaining ground. we continue to see strength for currency markets with the korean levels that we have not seen in months. kiwi stocks at a record high. hai

rbnz, we are getting some lines through.tant governor speaking after a day they left rates unchanged. markets have pushed back expectations when it comes to the amount of stimulus along with when negative rates come through. the rbnz said they can still use it as a policy tool if retired. we are just getting the inflation numbers from japan. contraction of 2.1% year on year. a contraction of .2%. both slightly worse than expected. shery: of course all of these eco numbers, what central banks are doing all to do with what is happening with a global pandemic. just days after pfizer's positive vaccine claims, now it may be modern'as turn. announcing -- close to announcing early findings. experts believe it will likely prove to be highly effective. joining us now is dr. robert gallo. one of the co-discoverers of the hiv virus. octor, think you so much for your time today. of course we have a lot happening on this vaccine race on all different fronts. from what you are seeing so far, how optimistic are you on the timeline of when

-- rbnz?een at pains to in claim people that we are scenarios, projections, uncertainty. i'm pleased to see them engaging. we want them to be thinking forward. they know what they are doing, what we have to achieve. that they arepe watching the same information. if the economy continues to grow and do what it is doing, it's a beautiful world. .hat is a big if today's news around the covid just puts another, you know, puts it in a new perspective. be careful out there. be prepared. do not run around on predictions. kathleen: how much are you depending on the new funding for lending program to give the economy the additional stimulus it will need to keep the recovery going? and maybe again, maybe they will not be a need for negative rates if it does its job. is that it? adrian: one would hope it is a beautiful world unless something comes up and kobe goes away, and you are right, we could re-normalize interest rates. we have a lot of confidence around the funding from the ending -- for lending p

now markets re-pricing whether you will see negative rates from the rbnz.ng rates basis points. let's look at some of these moves in airline stocks as we finally get details of the singapore and hong kong travel bubble. singair rose yesterday the most since 1987. no surprise a little bit of a fallback. ,e are hearing these flights with covid-19 testing replacing quarantine. sing dollar is holding at that two year high. positive news on testing for covid-19 with anyone able to get a test from december 1. let's get the first word headlines and head to new york. karina: u.s. senate republicans moving to avoid a government shutdown, releasing bills to provide funding. mitch mcconnell, who was just reelected as senate majority leader, says keeping the government afloat is a priority in the postelection session. top democrats object to the proposal due to the lack of emergency funding to fight covid-19. the current stopgap funding plan expires december 1. the european union has clinched a deal on long-term spending plans, moving closer to a landmark budget and st

the government trying to get home prices through the rbnz. what are your thoughts?king we have beenst projecting higher aussie versus the kiwi dollar. recent developments in the kiwi could lead us to rethink and reassess whether or not a higher aussie kiwi could be in the offing. the kiwi could get a meaningful boost from all these latest elements. -- developments. you, christy tan from the national australia bank. look at these top analysts recommendations across markets. this is bloomberg. ♪ juliette: time for our morning calls. let's get to sophie kamaruddin in hong kong, who has been tracking insights with janet yellen from the treasury. what are the expectations here? sophie: i want to highlight a note, sang janet yellen will easily win confirmation and bipartisan support, regardless of the georgia senate runoff. he predicts more than 80 votes in the full senate, which will give her strong standing when it comes to pushing for a stimulus package in the first quarter of next year. he also predicts a yell and pick means there will be a higher chance the fed will

overnight the fed, we didn't glean much in terms of past normalization, but we had an example from the rbnzhere you saw expectations of negative rates really push back and the currency as well as ponds really reacting. is there a sense that this could be around the corner? because if the vaccine euphoria is to be believed, in six months we could be talking about tapering. iserto: well, the vaccine unqualified good news, no doubt about it. the bad news is the vaccine will not come quickly, or, at lease for everybody. so the concern policymakers have in the u.s. and around the world is what happens in the interim. so, the longer people stay unemployed, the higher the risk that potential growth down the road will be smaller. so i think the focus for now a policymakers will still be on the short-term and try to do as much as they can to support the economy while we wait for distribution of the vaccine. haidi: we saw jobless claims rising for a second straight week, although home sales are shown some resilience. so, given the unevenness of the u.s. economic recovery, particularly going into a ke

the program may start in weeks and is seen as a key step toward the rbnz cutting the official cash rateive territory next year. singapore offering a pessimistic view of the post virus economy saying the economy is unlikely to pick up in a vibrant way soon. several sectors are showing improvement but aviation, transfer and tourism are likely to remain in what he calls suspended animation for some time, due to surging virus cases elsewhere around the globe. global news 24 hours a day on air and at quicktake by bloomberg. powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. let's move now to the witht action, mliv started mark, we have people embracing risk assets. the week has started on a strong note. the question is where has this 40 coming from -- where is this euphoria coming from? joe biden? >> a combination of factors but certainly more clarity on what is happening in the united states is helping people. also the fact that they are buying into this idea that gridlock in the u.s. system is actually a good thing for eq

we have the rbnz decision ahead of us this week but that market is up now for six consecutive sessionsnikkei futures reversing pretty dramatically at the moment. above looking at opening 25,000 for the first time in 30 years. trading at thell highest since november 1991. a quick look when it comes to u.s. futures as well. s&p active futures up three tents of 1% after peering the bulk of those gains on expectations that an effective widespread vaccine could mean less need for a big stimulus package. let's take a look at what is fueling the global rally. it is the apparent progress of the covid-19 vaccine. pfizer and biontech has reported positive results from their trial which could pave the way for a treatment being available by year-end. that's bring in michelle cortez. even anthony faucher this development extraordinary. michelle: it is absolutely extraordinary how quickly this has gotten to potentially reaching regulators and perhaps people around the world. we have to remember that this virus has not even been around for the past year. that isa vaccine potentially 90% effective aga

the rbnz has indirectly but efficiently been able to push back the concept or perception of them enterings. the bank of korea, ditto. you mentioned that yesterday, china is looking to exit may be emergency stimulus next year. toyou think that is isolated those specific countries or are we beginning to see the trend of a recovery that is coming more and more into vision here? at thei think if we look asia-pacific, that trend is clearly they are. we have seen a bottoming out of growth. we expect recovery to strengthen in the next few months in the asia-pacific so it is no surprise that banks are becoming a little bit more wary of cutting rates. we do still see some isolated rate cuts in asia, for example, indonesia and india next year. i think that will still be the case where we have to see some push of growth but i think on aggregate, the region will probably see less easing. i think it is certainly a move away into negative rates for new zealand and for some other countries. i would not say tightening. for much of next year, policy on lower for longer across the region. as long as we con