annmarie: bloomberg's chief north asia correspondent stephen engle.oining us this morning to digest all of this news is michael metcalf, global head of microstrategy at state street. i want to start with china. we had president xi speaking hours ago and china is really the only one that stands a chance. look at the imf projections that is going to grow this year. for years, we have talked about chinese exceptionalism and i wonder if it is coming to a point this year specifically. does the rest of the world stand a chance to catch up to china's growth? as you say, china is the standout positive in the growth outlook. large part and significant part of the global economy now that that will actually help the rest of the world we know that chinese exports are still an important source of growth and we know that domestic source of growth will become more important but i think the fact we've got such a big growth driver doing so well is positive overall for the world of growth and the gap will eventually narrow but it does not look like it is going to narro

stephen engle is following the story and joins us from hong kong. steve, what are you looking for in this speech? stephen: i am looking for a better tagline. they are calling this a chinese socialist pilot zone with chinese characteristics. i think the greater bay is the grander scheme. and xily china wants to jinping with a trip south within thehalf-hour, to emphasize need for self-reliance. in particular in the next generation of technology. shenzhen in particular is home to some of the biggest tech companies in china, be it tencent or huawei. there is also the ev manufacturer and others. he is trying to integrate at least nine major chinese cities with the more open internationally minded cities like hong kong for capital-raising as well as macau. it is a big endeavor and when they have been pushing for quite some time, to stimulate domestic growth as well as bringing hong kong more into lockstep with the mainland. saidis what xi jinping yesterday on the theme of self-reliance. war ifs this tech cold you want to call it that, with the united state

shery: that was stephen engle, joining us from hong kong.'s get the quickest check from the latest "business flash" headlines. as the world's biggest car market becomes more more a source of income, it is recruiting in major cities. tesla and its approach and u.s. with its communication team has largely been disbanded. in new yorkords thanks to a vote of confidence on wall street. 20% of the market by 2025. -- data shows a 60% for new vehicle owners. up next, what will the u.s.-china look like under the next president? we dig into that with hal brands . this is bloomberg. ♪ paul: you are watching "daybreak: australia." we have been hearing from the with a bank of austria, speech being given about the recovery of an uneven recession. he's been saying that the effect on the household income in australia has been following -- has been following. he is reiterated that there is not going to be any great hikes years,tria release three until inflation gets and that target range, at least 2% to 3%. dollar the aussie weakening a little bit. let's get

let's bring in stephen engle. what more do we know at this point? n: what we know is that this is a true. this is a story we call people familiar meaning we have sources from people familiar with the situation perhaps within the white house who are saying, you know, that they are concerned. the white house is concerned about the payment systems of alibaba, which is of course alip-pay and of tencent wishes wechat, because those are the common thread among various platforms for e-commerce that links a lot of their various platforms for social media to e-commerce. they are concerned that this auld pose americans data to chinese company and therefore the chinese government. again, from the trump administration would be concerns on national security. major escalation and economic and political confrontation with china. this is the ground jewe -- the technology of innovation, even more so than the hardware focus of huawei. if we are talking about ant, which is about to go public and what could be the world's biggest ipo. but, again, we're ehearing, we're n

shery: stephen engle with the latest on that quad meeting.ave more perspectives on that gathering, ahead. we hear from the simpson center in the next hour. the senior fellow says the trump administration wants the nation version of nato. later.ur guest joins up next, we will take a look at the global market impact of the upcoming u.s. elections. this is bloomberg. ♪ haidi: this is "daybreak asia." i am karina mitchell what the first word headlines. president trump has returned to the white house after being treated for covid-19. in a tweet, he told americans not to fear the coronavirus and said "i know better than i did 20 years ago." the white house physician says he met or exceeded all hospital discharge criteria and he will be monitored at the white house by medical staff in full protective gear. he says he is keen to return to the campaign trail. the world's second-biggest cinema chain is closing all its u.s. and u.k. movie theaters a made a resurgent virus and winter blockbusters have been pushed. theaters will close temporarily, affecti

shery: stephen engle there, joining us from hong kong. panel coming up in a couple hours from a global conference. the australian trade minister and -- speaks amid tensions between beijing and canberra. bloomberg subscribers can watch on bloomberg go. this is bloomberg. ♪ shery: the race to develop a covid-19 treatment has hit back-to-back snags. eli lilly passed its antibody trials over potential -- paused its antibody trials over potential concerns hours after johnson & johnson halted its tests on a vaccine. our health care reporter has the latest. side effects are emerging in the vaccine race. will they delay progress? everyone expected complications and side effects to emerge because that is what happens naturally in the drug development process. but it happened so quickly that development of these approaches, we haven't heard about the complications until now. so the fact that they are all coming out is actually a good sign because that tells us they are taking it seriously, they are not going to sweep something under the rug that is

stephen engle is live in hong kong, what are we expecting? get some clues on whether this is rock-bottom. that does not sound like an optimistic scenario. it has been a difficult couple of years for hong kong's biggest lender. we will get earnings later this week. the bank of china hong kong on friday. they really kicked it off at noon today at hsbc. there are a lot of headwinds. a lot of banks are looking at a lower interest environment, and squeezing margin. there are other factors that they must address. there is a big restructuring and downsizing launched in february. 35,000 jobs are to be cut, a lot germany, theance, u.k. while they concentrate more on the asia-pacific. one big figure that could come out of these results, which are expected to fall anywhere depending on the estimate you see. the big number could be in the low loss provisions. the aftereffect and continual effect of bad debt from the coronavirus outbreak, and the fact hong kong and other markets, unlike china, have not come back to levels anywhere near precrisis. we are lo

stephen engle, our chief north asian correspondent, has been tracking the story from the get go. , but it is not over. stephen: it's not. that's the legal jurisprudence in the united states. there is appellate courts and that's what we have seen, the trump administration putting two executive orders on tiktok in august. suspendedm has been through that preliminary injunction issued by a federal district court judge, issuing a preliminary injunction on that wouldl trump ban that remove tiktok from the app stores in the united states. tiktok/bytedance, the parent company, won that battle initially on the grounds that carl nichols judged perhaps the trump administration did exceed its executive powers under the emergency powers act. we go to the next deadline, november 12 or thereabouts, for the second trump executive order which, among other things, would require the sale of tiktok u.s. to an american company. it also has other restrictions. that's what tiktok has filed a court order asking for, to stop these restrictions. tiktok the comment from that they are asking for the issuanc

stephen engle is taking a look at those numbers. eve, we are now into the session with the executives. anything else meaningful being said there? stephen: there is. they have confirmed that there was a big spike up in those orders from huawei. they call it a rush order in the quarter ahead of those sanctions imposed by the added states, some ofing huawei from the most advanced components from american suppliers. samsung getting a big order. but the other interesting thing for those investors in samsung electronics was looking at the three year and faster return they had delayed about one year ago, or earlier this year because of uncertainty and because of the pandemic. investors really wanted to see this 2020-2022 investor return forecast up. the shares are now heading lower in the afternoon session because samsung executives are saying we are not ready to bring that out. it will come out in late january. shares.a dampen on the shares were reacting lower. and are not necessarily pleased. pleased on the one hand. this is a two-sided c

we are joined by stephen engle in hong kong.tly, this was developed even while president trump was in talks with kim jong-un last year. roll theseot just things out overnight. this is the largest icbm so far. it looked longer and with perhaps a greater payload capability. this is the first and they have rolled out such new equipment since they started that dialogue with donald trump in 2019 -- in 2018. with trump summits, with kimut and later jong-un, and that is when he said he would have a new strategic weapon. you could say that kim jong-un was coming through on his pledge to provide an roll out new strategic weapon. what does it mean for the relationship? we will have to see going forward. with the grand finale and the midnight parade, oddly it is in the middle of the night. they had soldiers and fighter jets and fireworks. at the end, the finale was this thatocket the kinds of -- kind of shows strength to the united states and a standing up to the unnamed enemy to the domestic audience. that is the theme of the speech of ki

let's go to stephen engle in hong kong. how significant is this?significant in the sense this is the most high-profile diplomatic effort outside the united states before the election. we are seeing the quad members, the japanese foreign minister along with the australian foreign minister and indian, that makes up a quad with the united states, and alliance to counterbalance the influence china is exerting in the indo pacific. states has adopted that term, indo pacific to include india which has its own border dispute with china in the himalayan region. you have australia in a diplomatic row with china. japan is an allied with the united states has a new prime minister. every country, including the united states, which has opened up numerous fronts with china, whether it is technology or what is happening in hong kong and elsewhere, so there is a lot to discuss. what is interesting about this because ofe pompeo, what is happening in the white house with donald trump and others being infected with covid-19, he is cutting short the trip. he will not g

our chief north asia correspondent, stephen engle, joins us from hong kong. re these numbers telling us about samsung's strength? stephen: these numbers are confirming the preliminary numbers that came out october 8 at 10.6 billion dollars operating income. are rightl numbers around in line, but what we are getting this time in the final numbers, as samsung does two sets of numbers, preliminary soon after the calendar quarter is over, and then after three weeks or so, we get these final numbers that include net income and include the divisional breakdowns. see howtarting to mobile semiconductors, displays, and consumer electronics are all faring as individual units as part of the group. that net income number, up 52%dated net income, year-over-year, and well above the estimate as well. that comeod indicator obviously, the third quarter is faring well for samsung electronics. bread and butter, main revenue generator. it has had a bit of a roller coaster ride over the course of 2020, surging on demand through the pandemic, but then, as discretionary spending que

they: stephen engle with latest there joining us from hong kong.t, parts of new york are looking at tighter restrictions including school closures while australia ask of a crowded beaches park warnings about increased fines in victoria. the latest on all of that just ahead. this is bloomberg. ♪ oomberg. ♪ >> you are watching daybreak australia. backdent trump may allowed to the white house from hospitalization amid questions about his health and treatment. the white house physician admits giving a misleading statement about the president receiving oxygen. the latest in a series of contradictory accounts. the briefing was intended to reassure the country but has left confusion about his condition. saudi arabia says is hoping for oil to rise 25% after analyzing the kingdom's prebudget statement. by breaking up government revenues, the numbers in a statement are based on oil at $50 through 2023. brent has fallen below $40. the calculations are roughly in line with erg ermet. and the pandemic names a daunting period ahead. -- up for the first time in m

stephen engle, our report on the ground in hong kong. my guest host is monica. look at the quick markets for you at the moment because of course, we had a 2% blow off the top and the equity market yesterday. was that a reappraisal of risk? got is really a reappraisal of risk because as far as the equity markets are concerned, do you really want to care yourself completely long? sweetue sleep -- narratives are dissipating. with blackrock, a 2% drop in equities gave you 5% -- five basis points on the bonds. blackrock downgraded their view on treasuries. they say a blue sweep is off the agenda for them. it will be a fiscal expansion. and then blackrock had another note on the dollar. it had a flashy tone to it but we are back to basics. you are going to have dollar weakness. those are the things. my guest is monica, global head of research. good morning to you. we are all scrabbling around for a justifiable reason to a 2% move in the s&p 500. things are pretty desperate. you say we are at a crossroads in these markets. what is the biggest risk to the markets as we

stephen engle is following the events and joins us from hong kong.aking with his counterpart, tell us the timing of all of all this. why now when the white house is already battling a coronavirus outbreak in the final -- of the election is just four weeks away? is a valid question. why now? i guess they want to show a united front of the key main democracies in the asia-pacific. as a counterweight rather than counter directly. china ing influence of the region. ,his is more big democracies japan, india, australia in addition to the united states. he has already canceled part of his trip, considered nonessential even the crisis at the white house. he is not going to south korea. the quad meeting all day, today. that is important. three of those four members have really direct attention with china right now. the united states, we all know what is happening between china and the united states but australia has the diplomatic rally going on. this is the backing of the independent investigation into the overages of the coronavirus. china clearly in the cr

stephen engle joins us from our studio. tell us what the key takeaways were.en: simply the timing of this gathering. one month ago before the election on november 3 in the u.s. and the coronavirus outbreak in the white house. trump sends his top diplomat to tokyo for an in person meeting with counterparts in japan, australia, and india, the so-called quad security alliance. maybe it is too hard of a word because it is not an alliance like nato is, but it is one that is growing in clout, at least in those four countries as a counterbalance to the growing influence of china in this region. wordsompeo did not mince when he spoke at the conclusion of the ministerial talks yesterday in tokyo. he said, as partners in this quad, it is more critical than ever we collaborate to protect our people and partners from the communist party of china's exploitation, corruption and coercion. we heard from the japanese foreign minister. he avoided mentioning china by name, but did say this quad could help strengthen the international order. the indian foreign minister echoed tho

stephen engle is in hong kong. it will not be pretty for hsbc this quarter. hen: no, the numbers will not be pretty but one thing i guess you can say they have going for them is all the other banks are faced with a similar headwind on the low interest rate environment because net interest margins have been squeezed across the board. it is just how you deal with the other elements and headwinds like we saw on wall street. some of the biggest banks saw big increases in trading volume and revenue in other areas of the business in the calendar third-quarter so hsbc, yes, the numbers are not going to look good. we need to look at a number of things in addition to the net interest margin being squeezed. you have to look at the restructuring and downsizing that was announced in february by the ceo because they seem to be not hitting those targets in the last quarterly results, so how much cost savings are we going to see? he wants to cut 35,000 jobs over the next three years. significant downsizing in europe in markets like france and emphasis ina bigger hong kong an

stephen engle joined us from hong kong. all the gyration. where do we stand now?e a development on this trumpet mr. risch an effort to contain or restrict these chinese innovative apps in the united states. and wely on tiktok checked, there was a parallel attempt by the trump administration to ban those apps in the united states on federal security grounds. federal district court judges ruled in favor of these chinese trumpet against the administration. we have an appeal filed by the trumpet administration on the tiktok luminary injunction. last friday, the trump administration also filed and an appeal on that we chat. those sagas are not over yet. there are still legal chapters to come. however, it is more interesting now because of the story of reported yesterday. the trumpet administration according to people familiar, the trip administration is looking into how they could possibly apply restrictions on the chinese payment platforms that have really grown in china. pay. talking about ali alibaba's financial services opening. we will have to see how that clouds

shery: stephen engle there with the latest on north korea.the latest business flash headlines. melbourne casino has received notice from the victorian gambling commission about junket operators. it requires them to show why they should not be disciplined over alleged noncompliance with internal junket controls. crown suspended all links with junket operators until june 30 next year while it reviews its relations and processes. google has halted plans to launch it's showcase in australia. please not clear if it will be viable under the new media bargaining code. google says they do not oppose the sale but says that the arbitration systems at the moment are unworkable. what itany includes calls unfair payment conditions and unclear definitions and obligations. reports from brussels say that big tech may face new rules on market dominance. eu regulators are targeting up to 20 large internet companies that would have to accept tougher restrictions and smaller rivals. the normaleyond penalties and force them to share data with competitors. they ma

stephen engle is looking at all the developments. he joins us now from hong kong. as the key take away as the meetings wrap up? stephen: it's interesting that america's top diplomat, mike pompeo, would choose this time, and the trump administration would choose this time, one month before the election, at a time the white house is going through this coronavirus outbreak cluster in itself, that they would send mike pompeo to tokyo to meet in person with three of their allies in asia, that being japan, australia, and india. part of donald trump indo as aic strategy to act counterweight to china's rising influence. if it was a full day meeting as you are seeing in tokyo yesterday, the first actual diplomatic meeting that was hosted by the name japanese suga,minister, yoshihide and that really signaled a willingness to continue some of shinzo abe more hawkish security targets. is toompeo, his effort get these four main nations to be a coalition, if you will, against the rise of china. this is what mike pompeo said. he says as partners in the squad, it's more critical no

haslinda: stephen engle. thank you for that update. let's do a check of the market for we go.essure. concerns about the virus and tech. the kospi down 1.3%. it is a tech story. lg chem falling. rishaad: going to leave things with hong kong. there you go. that is indian markets as well. ♪ the following is a paid program. the opinions expressed do not expect those of bloomberg lp, its affiliates, or its employees. ♪ >> the following is sponsored by humana. >> life keeps changing, and so do you come about as your lifestyle evolves, does your health care company treat you as an individual or a number? medicare advantage plan m s

shery: our chief correspondent there, stephen engle. with a guesthead joining us in the next hour. for now, let's go to karina mitchell for the first word headlines. hopes for a stimulus package are dimming, with nancy pelosi demanding they revamp their latest offer, with mitch mcconnell pushing a smaller one that president trump has already rejected. pelosi says the proposal is a thetarter in the wake of democrats have a more leverage than ever. is slow and uneven, with a less dire view on the recession with one fun seeing gdp shrinking this year, down from just ash one fund seeing gdp shrinking this year, covid-19 having killed millions and shutting down vast parts of the economy. are seeing advanced economies doing better than emerging and developing economies do in china. women doing worse in labor markets. rising inequality. long, uneven, and highly uncertain. the imf is cutting its outlook for india even further, saying it now raises the biggest contraction among major markets. gdp is expected to shrink by more than 10% through march, which is worse than the imf saw in june.