ubs inleave ubs, is prime position to take part in m&a if it comes? do they have the license to do a deal if they need it? i think it's always inappropriate to talk about m&a. for somebodyand about to leave the firm, i will not enter into that debate. in general, i think it is a scale that can offset the headwinds of regulatory costs, technology costs and crude. i think as far as ubs is concerned, we have plenty of room to grow organically. of course, we -- the competitive landscape is very intense. therefore we will need to watch exactly what's going on. anna: that was the outgoing ubs ceo speaking to bloomberg's manus cranny. and manus cranny joins us now. very good to have you with us. he says it's not polite to talk about your own m&a story that you all and over. let me ask you about buybacks. that seems to be part of the headline, part of the story. he is going to leave this business is lining up a big return of cash. manus: he will be leaving some litigation risk, but they will be making $1 billion in cash. this is about, i suppose, pushing back

we throw a hat trick, that is by speaking to a rep from ubs.dvising the union bank of switzerland. wonderful to have you with us. central banking, how is lagarde doing? >> thanks for having me, tom. at the moment, the policy is continuing very much in the old way, so businesses usual. -- business as usual. how to this review, we know it will be more green, more digital, but we don't know what happens to interest rates. i think going negative is likely to do more harm than good in the president recently -- recently said that she recognizes herself the risk of going more negative to start damaging the economy. the market is worried about impact negative rates, but on the other hand, the market is penciling in negative rates until q4 of 2029. say, it's another decade for us. tom: with the changing of lagarde at ubs, i know it's inappropriate to speak of executive actions at ubs and other banks, but i want to talk to you, and we have talked to davos about this many times, i want to talk to you about the level of impatience across continental bankin

this is an important business segment for ubs.o armani stepped down and gave an exit interview saying that the best thing he did for ubs was not selling the wealth management division. this is clearly a big deal for him in one of his final earnings to come. at the same time, all eyes are on whether ubs hits at any m&a acts of labor. the chairman at ubs told a swiss magazine over the weekend that they are not looking for any "bribes" and saying they don't want m&a at the moment. they would not comment on the talks they have had with credit suisse that was swirling around about potential m&a. trade will be important for ubs and much more concentrated on equities. a lot of the growth we saw in u.s. banks was fixed income.that might be a problem for them. manus: the article written about our former colleague, annmarie shared it with me. we will read that before we talk to him tomorrow about the non-consensus. i wonder what his non-consensus trade is at the moment. you talk about the u.s. banks, good morning to you. will that give us a

manus: that was the ubs ceo sergio ermotti.ay goodbye to ubs this weekend and you can watch the exclusive interview than. -- then. apollo is coming under pressure. the growing number of institutional investors are putting the wall street giant on review as clients hold off on fresh capital. questions linger over the cofounder's relationship with jeffrey epstein. to discuss is dani burger. the shareholders are getting a bit antsy, halting new investments in apollo. give me the latest. dani: the latest happened over the weekend. firm thatnsultancy manages $160 billion of investments has told its clients do not put money with apollo. that's after another consultancy, cambridge associates, did the same last week. two pension funds in the u.s., a pennsylvania public school systems one as well as connecticut. connecticut's treasurer, coming out saying we are not committing new capital to apollo. the australian financial review is reporting one of the tensions is reviewing one of its mandates which is worth one million australian doll

ubs, the end of an era at but sergio ermotti has other plans.ersees his last set of results at the helm of ubs. my new interview rolls out at 7:00 a.m. and it is all about banks. this is bloomberg. ♪ annmarie: just over an hour away from the european markets open. i'm annmarie hordern with manus cranny. 10: 30 a.m. u.k. time, boa policymaker will deliver a speech on the u.k. economic outlook. 1:30, housing and building permits data out of the united states, both expected to pick up in september -- december as we have record low mortgage rates and that supports demand. manus: absolutely and the new york fed president john williams is going to make the opening and closing remarks of a webinar series on culture at 2:00 p.m. later on, third-quarter earnings from netflix. what are you watching on netflix at the moment? -- we don'tbout have to publicly disclosed that. we's talk about ubs because had the results of the third quarter and it marks the start of a host of european banking majors coming to pass. we will hear from the ceo sergio ermotti. mat

what is the truth of ubs lending more? management division lending more and taking more -- >> he has been a valid addition theye team, but even aren't a perfect couple. 10 pieces ofhan landing this quarter, and the strong performance was from the americas and not the areas where they are more involved on a day-to-day basis. lending is a strategic priority for ubs and not for a single person or single segment of our business. >> love the interview by the way, and you say my best decision was not to follow consensus. what is your non-consensus trade as you got the door? we talked a couple times that you like credit. what is the nonconsensus? >> that is quite difficult to say, but i would say in this environment, though it is painful to all cash, being ready to invest if there is a downturn is very important. >> just give me a sense of global risk. bank of america's narrative was that we are getting a bit greedy. do you think markets look rich and greedy in terms of equity markets, credit compression? do -- is there a sense o

today, we have ubs beating expectations.the risk reward for you are morepean banks now clear with dividends coming back into play? james: so glad you asked me that. i was hoping you would ask me about u.s. banks where the pictures a tiny bit clear. european banks is a dog that never barks. are they cheap enough now? no, the short answer. i still believe ultimately the banking sector is going to be a function of the economic outlook, the interest rate outlook and regulatory outlook. with european banks, you have the added factor of balance sheets which are not clean. there are still skeletons in the closet in various banks across the region. the structure of the banking sector in europe is a bit too fragmented. sufficientseen mergers and acquisitions activity in the banking sector or big winners to emerge across the region. to me, there is still a heck of a lot of work for the european banking sector. h struggle to find banks wit business models with profitability you can hang your hat on. we appreciate that. you will still h

why is the bank so important to ubs?leaning on it for businesses like lending like your bignked products committed tos he my paycheck and where will they cut costs across the bank? jonathan: thank you very much. let's look at where european stocks have finished. for londonvement markets. banks finishing unchanged. at the top of the hour, we will see a boris johnson press conference. we will take it live and begin london digital radio. this is bloomberg. ♪ cfo, at 3:00 p.m. in new york. in on the bluebird first word news now. by the end of the day, plus he said there must be clarity on the bill if it is going to be passed by election day. said there are still significant areas of disagreement. lenny of momentum at the end of the third quarter. stocks increased last month and usually gain in single-family house construction. an annualized rate of a little more than 1.4 million. that is more than analyst estimates. in the u.k. rapid coronavirus tests at an airport. must book the tests ahead of time. global news, 24 hours a

ubs or deutsche bank? daniel: it is a matter of the overall pay.ties inhe terms of base salary, particularly among the senior ranks. they wanted to change it and increase. deutsche bank, we just heard from the cfo, they are saying we really need to be able to reward our top performers, which is .hat ubs is saying as well this is the crucial thing for both banks. to be able to keep their top talent. i am still trying to get to the bottom of ubs wanting to increase base compensation. what does a banker want? a smaller bonus? if you jump ship, it is not deferred? tax? more advantageous to what is the difference? in competition with u.s. banks, it is good for the european banks, from their perspective, it is crucial to higher top performers bonuses, not only to have them on higher salary, because they could be the ones that could be poached by the u.s. rivals. despite -- tom: cut to the chase. we need to get the gossip out of the way. dennis schaefer knows everything. -- daniel schaefer knows everything. how much is the inroads of american banks going

ubs and credit suisse coming through with numbers. a guest who said, i would have to pay her money. i can't or member her name. you would have to pay her money to take banks on her book of risk. i haven't got any money. what i have to pay you money to take banks on the book? seema: let me ask you a question. which ones? european or u.s.? manus: ok. let's play that. you probably want to be longer on american banks that you would on europe. will you shoot me down? seema: no. i fully agree. we've had some pretty decent surprises from a lot of the european banks in this earnings season. the market has moved on. it is focusing on the macro challenges ahead. for europe, the challenges look far greater than in the u.s.. manus: ok. there you go. enough of this discourse. i don't think i'm supposed to have an opinion on which banks anybody wants to hold. that's why i need experts like you. stay with me. some old characteristics you can't kill. coming up, the ecb president will speak to a press conference today after the meeting. what is the me

ubs estimates it should attract $150 billion of inflows over the next few years.ie kamaruddin in hong kong with an outlook for what to expect from the chinese market. we do have the market open in sydney next. 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. haidi: very good morning. i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. welcome to "daybreak asia." wall street fell to its lowest in a fortnight with a stimulus deal remaining elusive in washington. new data show key parts of the u.s. economy are slowing ahead of the election. the ant group is said to have won the green light from hong kong exchange.

annemarie: ubs ceo sergio ermotti.o ubs this weekend, and can watch the full interview, the conversation between sergio ermotti and manus cranny. manus cranny has been following him his entire tenure at the bank. later this week, a settlement meeting, to impose retaliatory tariffs, $4 billion on u.s. exports. tomorrow, hsbc, one in a long list of banks reporting this week. ofnesday, the ceo's facebook, twitter, alphabet, all expected to testify before a senate hearing on eight speech, this information, -- on hate speech, misinformation, and privacy on the platform. the comments we want to hear from christine lagarde, back to celebrate her first anniversary at the helm. friday, another slew of bank earnings. west net group, banko subadult, -- joining us now is richard jones. let's first start with the price action today. lower equities, lower yield. you say this is a blueprint for what is to come. explain. >> good morning. i think what we are seeing in stocks and the dropping u.s. treasuries and bond yields, it could be

ermotti and his tenure ate ubs. look for that this weekend. a headline -- given the challenges out there, they had a great chart up in francine's earlier hour of the decline in the bank index in europe. 39%, i believe, is this tested thick -- the statistic, year-to-day. futures, -31. francine: and that is partly to do with a number of cases increasing around the world in terms of covid and partly to do with the fact that markets are just not expecting a stimulus package out of the u.s. let's get back to rupert harris of blackrock. i amit comes to brexit, looking at the latest report saying that covid has dragged 2 million more u.k. adults into financial troubles. what would be the elegant way to to make surexit covid does not put too many people in distress? rupert: the overwhelming incentive on both sides is to get a deal. as you said, covid provides a backdrop that there was some speculation earlier in the year that while the impact on the economy from covid is so bad that therefore the additional impact from a disruptive no deal on these tr

annmarie: they do prefer a ubs tie up. meet lastre set to year, manus.y, this is really pulling together a list of what the tie up could be about european banking consolidation. what all the banking analysts say is regulation. how does this go forward due to regulations and the banking they said it would be no m&a until they get profitability up and share price recovers. manus: absolutely. very satisfied with the momentum in the period. they are going to have a hybrid model work from home going forward. let's have a quick check on the markets. release of the curve steepeners, the equity markets. day, i think. , the resplendent arrival on the balcony, walking up the steps, which is very much about health. john arthur said it is about keeping the dream alive in terms of keeping the economy open. that was the message. you have a number of different narratives. deal?there be a fiscal do you believe joe biden would actually push the curve steeper? in terms of what he could do? we build on that narrative, 8% of the oil and gas production. so, that is the state

paul donovan, ubs global chief economist.zeitgeist this weekend, can you believe china's recovery, can you? paul: i think china has had a genuine recovery, very different from what we saw in europe and in the states. in europe and in the states people acquired savings during lockdown. as soon as they are released from lockdown, you spent three months, set at home making -- watching homemaker shows on netflix. you will rush out and spend the money. ,nce you have spent the savings obviously the momentum slows. slowing fourth-quarter momentum is hardly a surprise. every economist was expecting this to happen, but china did not have that model. model people were not able to accumulate savings. they were able to live off the savings because there is a less efficient social security net. there was a pause before the domestic consumption started to kick in, and that coincided with the recovery in demand we have been seeing in europe and the states. tom: can you bring that recovery to demand to gdp in the u.s. and europe. , dowy mark

bhanu baweja is still with us from ubs. want to understand where we get the biggest movement in assets. covid is a huge story all the way across europe. the pound is obviously going to react. i want to know where else we are going to see reaction in u.k. assets. the u.k.interested in inflation market as well. that assuming deal is probably deflationary, but no deal to be really quite inflationary as we see tariffs coming through in the pound getting hammered. how should i think about how some of these assets are going to be affected, and what would your expectation be? are among. real rates the most negative in the world, both because the central bank has been buying, but perhaps more important because inflation expectations have gone significantly higher in the u.k. because of the fears of a no deal. just about a month back, we begin to see inflation swaps price in a little lower inflation, and eurosterling volatility beginning to come a little bit louder -- a little bit lower, so that was the first time that the market be

john wraith of ubs, thanks a lot. we appreciate it.s is bloomberg. ♪ guy: ongoing press conference at 10 downing street. just been hearing from the chief scientific officer in the u.k., driving in some ways the critique from the science community that the government is not doing enough. he is saying, "we are not where we need to be on the virus." scientists are certainly pushing the politicians at the moment to do more. in some ways, the politicians are trying to do more in the form of regional lockdowns. then we are having a fight at a regional level. we certainly feel look disunited country. let's take a quick look at where markets are right now as we head towards the close. a very positive session for european equities, as you can see by the final numbers that have been delivered here. in terms of where we sit on the week, a little less positive for european equities. the ftse 100 down by 1.6% on the week. the close is next. this is bloomberg. ♪ mberg. ♪ guy: 30 seconds to go until the end of regular trading this friday, alex. it is

coaching teamsh from ubs in recent months.ls fargo is set to be exploring the possible sale of its corporate trust unit and that could affect more than one billion dollars. sources also say it is during whether to known portfolio and may sell its $600 billion asset manager with bids expected by the end of the month. the ceo spent the last 12 months reviewing the banks businesses after years of scandals. still ahead, we speak to the emq queue founder and cio, kevin carter, about aunt groups giant dual asia listing. he joins us, next. 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,

ubs is concentrated in equities. that could be a headwind.us. 10 days ago, the chairman at ubs said they were not interested in a bright. they were -- a bride. they were not interested in m&a targets and he would not comment on credit suisse. anna: dani burger with a look ahead on the banking sector. the u.k. is prepared to water lawbreaking brexit deal to try to revive failing talks with the eu. otherwise, boris johnson has said his focus is on leaving without a trade deal. what would that mean for britain's trade and ports? good to speak to you, mike sellers. i've been looking at some of your background. opened in 1976. isleave without a deal, what your assessment on what that would do to your business? mike: you are right. 1976ort was established in with two ferry operators. one of which is brittany ferries. they are looking to get fresh produce across to the u.k. and they joined and started looking at that at the time that the u.k. joined the ec. been focused on eu trade. we have been preparing for whatever the outcome will be and we have

ubs came out this morning, european bank crushed it, absolutely crushed it.heir net today absolutely doubled from the year before. they're talking about sustainable investing as kind of like an absolute class their investors have been looking for. they're saying that they're only large -- and that is trend and a lot of positive things so ubs up big today, too. charles: also, i should note ubs said they're bringing their buyback next next year. that is big news. steve what is standing out sofar? >> really good earnings season so far. you're beating by 21% on the bottom line, that is the second beat rate ever recorded. only one that was better was last quarter. if you look in the big banks were encouraging because when you looked at the credit metric they were better than expected which suggested that the consumer is pretty healthy and sets us up i think for a nice holiday season. the beat rates are there and we're not just beating expectations that are falling. it is not jump over a lower hurdle. companies are still beating by a big margin. that is rare. charl

turning us is martin henrichs, head of health care m&a at ubs.k with you on bloomberg. are we going to see a flurry of activity as some of these big companies try and look at their pipeline and either streamline or bulk up in places where they should? martin: first of all, concerning in the coronast environment, you might recall what johnson & johnson said a few months ago. one thing i know for certain is we are going to be 100% itcisely wrong, and i think is relative -- it is relatively difficult to forecast. the other thing, with the core trials happened in -- you mentioned johnson & johnson. the question that we will have this and the trials, such as unity,f the duration of aspects of certain patient populations -- we will not see a one-size-fits-all approach for covid vaccines, but we will see multiple approaches and it is relatively difficult to forecast when we will end up with a pipeline -- francine: there seems to be huge disparities because of health stocks. overall, how does covid-19 change the winners and losers in the current crisis?

now frome is with us ubs.orecast, nowts sees a 55% probability of a blue wave, where democrats get the presidency and both houses of congress. what took you to that 55%? laura: thank you for having me today. based on the polling data and protection markets we follow, we are seeing an increased ability of a blue wave outcome. believe in that blue wave outcome, it would be quite positive for the markets, in the sense that we could expect to see a larger fiscal stimulus package. we have seen equity markets pricing this into some extent already. regardless of who is in the white house, we believe that once we get past the election, once we get more information on a potential vaccine, hopefully by the end of this year, the economic recovery should take hold next year, and that combined with more fiscal stimulus should lead to a positive environment for equity markets. even though we are experiencing some near-term choppiness today and in recent weeks, we believe the outlook is positive. vonnie: quite the statement.

. >> steve and i are now joined by the chief economist from ubs, aaron capitan.e're just hearing there, some initial reaction to the china data that was out overnight. your take on the data and perhaps the implications that you see for the rest of the world, what's the read across from this china data in growth in other parts of the world sf. >> yes, so, the data was fine, where the weakness is what we can't monitor which is services, all the high-frequency data is good at manufacturing but not really services. i think you know the unknown and uncertainty around our forecast is what's truly going on in segment of the economy that we're not monitoring number two, china has done less stimulus for the household sector than most countries part of the weakness, they haven't stimulated there their money have gone to corporates and properties. the margin, that's interesting, because everybody's obsessed is what's going to happen in stimulus in the u.s. and elsewhere. for me, the final takeaway on the chinese data, there's now some weakening in inf infrastructure, the le

he n the world are at the biggest risk of being in a real estate bubble that goes pop ubs assigns their and the top three bubble city, number three, toronto, canada real estate has ben red hot there as well. and what is up with germany? frankfurt number two, and then the most bubble is munich, germany. so germany number one and two. and maybe a little good news in all of this for the united states ubs says that despite a long term property price hit, new york city ultimately will still be attractive to wealthy buyers in years to come and also chicago got a score of negative 66. chicago has a lot of problems. but look at that, it is still a spectacular city how do you say random but interesting in germany [ speaking foreign language maybe that's french. i don't know let's take a look at the marketses a weekly jobless claims are due later on this morning and three are more fed presents everyone day, like five or six fed people just speak and joining us now with what he's watching is rob morgan with citi companies, rob, being a little tongue in cheek, but when you have 17 fed speakers in a

covid wave in many states, let bring in brad mcmillan and sherry paul, senior portfolio manager at ubs global wealth management. sherry, let me begin with you. are we right to be on tenter hooks waiting for a stimulus or a rescue package or should we be looking at something else? >> well, i think that what i'm telling clients right now again and again is don't allow political chaos to create portfolio chaos. the bottom line is we are going to see a stimulus package we may not know how much or how big we know it going to be big and we know it's come. if you look at the economy and look at the s&p right now that's fairly traded, it has a difficudividend yield almost three times its treasury so thematically what you want to be doing is instead of trying to trade this market, invest in it and start to tilt your portfolio toward the cyclical recovery themes, emphasizing industrials and health care where we see good value in this market and don't abandon your strategy, continue to adjust and step into themes, much like if you were trading your portfolio like a holding company on high-quality

haslinda: that was ubs ceo sergio a modi speaking to manus cranny.ull interview in our special broadcast airing this weekend. for now, a check on the latest headlines. edelson is rolling the dice. he may put his flagship casinos up for sale. we are told lbs is working with advisors and an eventual deal could be worth $6 billion. to vegas sands has declined comment, but a deal would include the venetian and the palazzo. wells fargo is said to be exploring the sale of its conference funds unit that could stretch more than $1 billion. sources say it is considering whether to offload its loan portfolio with the end of the month. the ceo has spent the last 12 months reviewing the bank's businesses after years of scandal. india's cota mahindra bank rose 10% in the second quarter to almost $400 million u.s. lower provisions aid growth. india's largest private bank set aside less than $2 million for losses related to the pandemic for the september period, compared to $80 million in the first quarter and a similar amount in the march period. apple is said to

and ubs's outlook strategy. we debut the market open in china.mall 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. tom: it is not neglect a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." i am tom mackenzie. david: and david ingles. let's get to top stories, the chinese currency beijing pressure after the pboc moving to calm its surge making the currency easier to short. we await today's fixing in 15 minutes. tom:

evan brown thereof ubs. want to bring you some news from united airlines very quickly. how do you live with covid-19? the corporations in the airline business are trying to lead the way. ,nited plans to offer newark london testing from november 16 to november 11, and they are hoping that they establish this and it works well, and should lead the way to ease quarantine rules. this corridor is super important for these airlines. the airlines are trying to do something about it. tom: we are not making light of anything we are seeing today with the pandemic and the sadness in nice, but you could call this the ferro plan. deal, andreally big to me, it is a simple solution. that is what i don't understand. jonathan: i've clearly got skin in the game, and i hope this happens, but i think for the airlines, they don't want to get bailed out. want to operate again, and this could be a big part of that. much more still to come on this program. alongside tom keene and lisa abramowicz, i'm jonathan ferro. up, michael collins, pgim senior portfolio manager. from london and new york,

on the credit front, ubs sees value in asia.credit expecting spreads to tighten to around 600 bips. defaults look limited. basie room to tighten for e.m. sovereign dollar bonds. fromxpecting spreads -- the current levels above 400. elections are's being held this weekend. we know they have done really well handling the pandemic. what is the outlook for their economy? sophie: they upgraded the forecast for new zealand's gdp, labor market, as well as inflation, pointing to improving business sentiment as well as a stronger housing market. economic growth bouncing back while the jobless rate is seen rising at a slower pace, 7.5 percent by 2021. anz expects a softer growth from the first half of 2021 for new zealand. anz sees a 50 basis point break out in april. risks looking more balanced for new zealand. haidi. haidi: president trump and joe biden will be on television in the coming hours, hosting competing town hall meetings at the same time. the president is suggesting he will face tougher questions and his opponent. joining us

marketset's discuss the with ubs private wealth managing director. great to have you on. we had tech stocks again leading the gains. we had also investor david einhorn saying the tech stocks are in an enormous bubble. what are your views of what will be driving the markets in the next few weeks as we headed toward the november election? >> thank you. we are seeing the markets trying to adjust -- trying to digest a lot of conflicting signals. obviously, a setback as we are starting to see covid raise its lockdowns. back into lots of governors here trying to figure out what they are going to do as well as states around the world wondering if we need to start stepping back away from the get out and get back to normal. some of the tech stocks we were giving back are part of the stay-at-home basket of stocks we have been looking at. that.e seen a lot for we have started to see a rotation into cyclicals and that unfortunately got interrupted by this bad news on the cold front. and finally, in washington, d.c., all eyes are on the race in the house, the senate, in the presidency

there are protections, benefits, paycheck protections, benefits and at the same time you don't let uber and lyft have an advantage over their competitors because they're not providing those types of benefits. that court of appeal affirmed what the lower court, trial court had said and so now the timetable starts running again. uber and lyft have to start treating their workers as employees. we'll see what happens with the ballot the we continue the lawsuit to show that they must treat the workers properly and they can't use the muscle and clout to try to change the rules for itself >> right now ub eastern lyer and lyft poo surveys that show they want to be independent contractors what data are you looking at what evidence do you have that drivers want to be treated as employees? >> well, we first look at the facts. we don't take a case to court without facts. and the facts are that the supreme court gave every business a clear set of rules on how to determine whether you can treat a worker as an employee who is entitled to those worker protections, paycheck froecti s protections or in

what is ubs recommending? diversifyey say beyond u.s.sector but don't stay on the sidelines given long-term opportunities to build up positions in 5g and green tech. chinese new economy stocks as online players by more market share and consolidation is in play. ubs says don't just focus on china's e-commerce sector as on -- other online industries are happening. shery: investors are watching the bond market in china. what are you watching? canie: we will see if china secure a lower cost of funding as beijing attempts to avoid uncertainty after the u.s. elections and market volatility that is expected in the current environment. investors have been buying into bonds but shunning em stocks and -- theme, dws says em government debt is positive, but they cut the rating on em corporate bonds to neutral sensitivity -- due to sensitivity about the pandemic and the sustainability of the recovery, flagged by the imf in its assessment of em asian economies aside from china. haidi: the battle over a new stimulus package in the u.s. seems to be no c

haidi: that was outgoing ubs chief sergio ermotti speaking to manus cranny.fends giving covid vaccines which are still in clinical trials to hundreds of thousands of people. 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. >> this is daybreak asia. hopes are rising of a stimulus deal in washington. speaker nancy pelosi saying she's hopeful of agreement this week. mitch mcconnell says the chamber will debate any stimulus package if a deal can be reached. pelosi told bloomberg that more work is needed to overcome spending issues. we all want to get an agreement because people need it and it is urgent and our economy needs it. we have one bump in the road wit

. >>> straight ahead on the show, stock futures under pressure to kick off the week here what ubs markle says about the selloff and busy week ahead for wall street when "worldwide exchange" returns after this what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. united states can't easily get to a doctor or afford the treatment they need. that's why goodrx has built a leading consumer-focused digital healthcare platform. we wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. as a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford. ♪ >>> stocks set to kick the new trading week off with steeper losses amid mounting conce

executiverdhan, director for bodies and fx at ubs global wealth management.insight. -- executive dr. for commodities. >> president trump returned to the white house. removing his mask for the cameras after leaving walter reed medical center where he was treated for covid-19. earlier in a tweet he told americans not to fear the coronavirus. the president will not 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 prime minister of malaysia is in home quarantine after coming into contact with a minister who was tested positive for covid-19. he will spend two weeks in isolation although he says his recent tests have a negative. monday malaysia logged its highest deli search in the upper it began. the u.s. aims to keep pressure on china. secretary state mike pompeo meeting counterparts from japan, australia, and india in tokyo. the quad nations demonstrating solidarity in the face of china's auditing influence and ambitions. quadng expressed concern is an attempt to the exclusive and s

with ubs. we are watching the various geographies of the brexit debate. francine: yes, so we heard from the president of the commission, ursula von der leyen. they're going to send legal challenges -- a letter of legal challenges to the u.k. it will not really move right now because we expect u.k. to answer back with an expo nation, but it has had an impact on pound. you see the fragility that any brexit news could impact u.k. assets. a oneound-sterling off point 2838 low. that's at a one point -- at a 1.283 eight low. we want to give you different perspective on what is called alternative investors, the investors who are all in cash. that is joe. james barry will join us from blackrock. chief investment -- that is a joke. james barry will join us from blackrock. chief investment officer. this is bloomberg. good morning. ♪ >> five years ago in silicon valley, you have money pouring in from china, and other places. things overvalued five years ago should be valued at $8 billion to $10 billion, and i think the great byword is now. it's a huge mystery, and o

ubs has done some survey work, they think there might be a 10-12% dechain in sales of soft -- decline goods like clothing. that's a massive decline. they see the biggest increase that they've seen since the great recession. so it's significant. they are most bearish on the department stores. that's macy's, it's nordstrom, and it's kohl's. but they think people will shop early, so you might see good numbers before you see bad numbers. you might want to sell, you might want to think about selling during november. jack: so you scared me. i thought you were going to tell me you weren't getting me a present. santa claus, i can live without him. >> it's on its way, buddy. [laughter] jack: if you're not bringing huge, extended family together for christmas, you don't have that get that gift for the great aunt. so candle sale gotta plummet. [laughter] carlton, what do you think about that? and also give us your actual ideas. it's that time of the show. >> so i do think one thing that is going to benefit, it e won't be candle sales, but i'm looking at irobot. investors took profits, but i like

let me talk about ubs, swiss bank. virus restrictions are the near-term risk not the election?i would have to afraid with you. are afraid if we get increased lockdowns, that's going to impact earnings and impact how folks work, get to work, whether they do work, unemployment, et cetera. i think they are right and spot on because this is the worry, the front-burner worry for investors right now near term. stuart: you've been a bull on all kinds of companies, bull on the market for a couple of years and you're still a bull on the market regardless of stimulus and the election and the rest of it. you think up rises continue to go up, is that what you're still saying? >> yes, absolutely. any and every dip, the deeper the dip, the better opportunity to buy. a lot of folks in the sidelines, more than 4 and a half trillion dollars sitting in mutual funds, incredible amount of money. the money because there's nowhere else to go, the fomo effect, the fear of missing out is going to bring the money back in the sidelines, every day there's more capital being created globally and fewer sha

power should be taken away from ubs, not concentrated in the hands of the few of them. >> the premieris an organization is against the plan. no surprise because most of its members would lose votingower on big decisions. a source at west ham united told us the big sis are using covid for a power grab. it would dominate the group to get more decision-making. the premier league is against it. the government is also against it. here the secretary of state in charge of sport. >> this deal does not command support throughout the premier league at all. rather than doing backroo deals to try and reform football at this critical moment, i would rather they are working together to ensure the future of football. >> have i got news for you tweeted, football fans everywhere agreed it's be -- it'de much better without them. the smaller clubs will fall out of the league if it does contract. go further down the ladder and you will find the chairman of the league 2 club saying better fundies and end the parachute payments are to be things that -- positive changes. the former captive of manchester uni

in response, ube lyft and other gig companies are funding the most expensive ballot measure in the state's history, and voters to decide.ornia newshour weekend's laura fong has the story. ( cars honking ) >> reporter: app-based drivers have organized across the state from los angeles to san francisco, calling on the gig companies to start treating them as employees under a new state law that went into effect earlier this year. last yeae r lifornia state legislature and governor gavin newsom plaassed known as a.b. five that narrows the definition of an independent contractor. it codifiea california supreme court case against a same-day delivery company called dynamex that ruled in favor of workers who claimed they were" contractors." as independent the a.b. five law requires that a worker must meet three factors under the so-called "a-b-c test" in order to be considered an independent contonctor: the peust be free from the control and direction of the company, performs work that is outside the usual course of the hiring entity's business, and is engaged in an independently established trade

up, the ceoapping of ubs. a world leader in wealth management.rg about the economic situation in the world and the u.s. >> europe can gain grounds from where it is today. of itsficant shakeup system. the u.s. is still not beyond the value, underestimated. always come out stronger by any changes in earnest ration or politics. >> you can watch the full interview in our special conversation with sergio. that is your bloomberg business flash. thanks. was talk about what is happening in ubs. they will increase pay. you would have thought that would make them less competitive but it is the opposite. they are trying to increase some people underpaid in the moment and also it will potentially help with regulators. investors probably welcome clarity as well when it comes to the cost story. >> we heard something a little different from jp morgan and jamie dimon, saying look, revenue and trading is great but you might not get your bonuses you are accustomed to. you do not want look back for regulator so banks are trying to buy back no dividends and all of t

we discussed next with the head of private financing markets at ubs.s is bloomberg. ♪ anna: welcome back to the european market open. futures look fairly sluggish. u.s. futures also pointing to the downside. is the blank check boom losing steam? it took markets by storm over the summer. names from the oakland -- september, then 8.4%.has retreated companies that choose ipo's rose 12% in that same time. where did this phenomena and go next? let's talk to isabelle toledano-koutsouris. good morning to you. nolicly traded but with operations and assets to speak of. where does it go from here? isabelle: good morning. thank you for inviting me back. always a pleasure to be on your show. i think public and private markets are more and more intertwined. seen a lot of investors turning to private markets. that's more on the credit side, of course. that's more on the equity side. that is not a new phenomenon. it's more a u.s. one than a european one. what's very interesting for the markets that we focus on in the private side is that it provides new exit opportun

wang tao from ubs. you can bloom -- turn to your berg terminal on tliv to get the latest analysis. you can go to live go to listen to the latest data on the economy. it wasn't the only country out with important economic data. as wefigure out who else go to new york and join karina mitchell with the first word news. japanese exports decreased data single-digit pace for the first time in seven months in september, pointing to an improvement in global trade. the value of japan's over she's shipment fell 4.9 percent from year ago, narrowing from an almost 15% drop in august. the average was for a fall of 2.4%. itsu.k. is set to rewrite lawbreaking brexit legislation in a move that could revive failing talks with the eu. the government says it still wants a deal and the door is close to a jar. the minister told the news he was keen, but it takes two sides. boris johnson said friday talks were over and the eu must compromise. thailand, where protesters are vowing to continue their antigovernment push des

re-rates ite stock could make a suitable grab for ubs. we look forward to the interview. well done.p with the cfo. we will have that interview for you very shortly. he is our bureau chief in germany. interviewear that very shortly. just a recap in terms of risk, ye have had derek halpenn talking about the risk for a draw down on the dollar. the swiss face the risk of the currency manipulator tag after the selection. -- this election. repricing the blue sweep. there is one red headline. it affects everybody at home in europe. the decision to close bars, restaurants, for one month. this is europe potentially running out of options on how to get ahead of the virus crisis. annmarie hordern and jonathan ferro take you through the european market open. ♪ jonathan: from london, for our audience worldwide, good morning. alongside annmarie hordern, i'm jonathan ferro. europe, bracing for lockdown. market jitters, futures adding to this week's losses with six weeks -- days to go in america's election. bell,ur until the opening equity futures down hard. on the euro stoxx 50, all 53, -1.73%. s&