Transcripts For BLOOMBERG Bloomberg Markets Asia 20240712

Small businesses. The airlines in dire situation. United and american saying they have to cut jobs, tens of thousands of them, as borders remain pretty much locked down. Yvonne you are seeing the president trying to do at least some damage control after he talked to negotiators to pull out of talks for a stimulus. Perhaps we are seeing some targeted measures. You have seen the market impact. The nasdaq and futures reversing the losses we were gaining. U. S. Futures are up. We will see if this bodes well for the rest of asia. If you look at the rest of the asia region, it looks like risk assets are looking less entire than the wall street session. We are seeing a bid for aussie against the japanese currency. When it comes to u. S. 10 year yield, we are holding steady, but the move up in yields on the announcement from trump. Stocks have been lower. Jakarta life coming back online. We are heading lower in jakarta. Hangseng up about 163 points. A touch higher for some markets. The rbi is going to be resuming that meeting with a new panel after much delay. We will see if that changes the dynamic of the group. Take a look across asset as well. Aussie assets in particular when it comes to australia unveiling this budget. They are spending a deficit of 240 billion aussie dollars. Analysts say this could lift all boats. Few losers in this stock market from this package. Bond yields at record lows for the three year. The countrys bond issuance plan was less than expected. Policy 10 year down three basis points. The dollar is the big story. We saw that haven bid once again after trump did delay stimulus negotiations. The offshore renminbi pretty much steady, but well off those 18 month highs. Brent has been off 1. 5 . Gold retreating below 1900. Haslinda trump front and center with this talk to delay the stimulus. Lets get more from Jodi Schneider. This latest Development Shows perhaps trump is providing may be some shortterm support as we await the stimulus package. Jodi this is a turn from just a few hours ago when he said he democratictalks with leaders on a new stimulus package. He said in a tweet he instructed his representatives to stop negotiating until after the election when he says immediately after he would win he would pass this major bill. He seems to be backtracking a little, allowing some measures. We will see. Talks upendedese months of negotiations between republicans and democrats on capitol hill. Democrats had continued to insist on a 2 trillion or more stimulus package. Republicans wanted less, but they had been making progress. The fed chair Jerome Powell basically said there is a need for stimulus to avoid the economy being more hurt than it has been. Negotiations looked like they ended. Nancy pelosi, the house speaker, having some harsh words for the president , even saying she did not know maybe his treatment for the coronavirus impaired his ability to think rationally about these things. It has gotten nasty again. We will see where this goes and how much stimulus they may be able to get done, even if they are not negotiating. Yvonne i still cant wrap my head about why we are hearing this uturn from the president. Politically speaking, how does this help him . Jodi good question. There is no indication he was advised by anyone to stop the negotiations with less than a month before this election. Lets allid Work Together he tweeted a few days ago, which you think would help him win reelection. Saying to people, i understand you need some help. Then pulling it. He was trying to make a point about the kind of stimulus he wanted and trying to paint the democrats as giving money away. At the same time, it is hard to see that was a political winner. Maybe he is walking back with other discussion points about targeted kinds of stimulus. Yvonne our Senior International editor Jodi Schneider with the latest. Lets get the first word news with Karina Mitchell. Arena the imf and wto warning a longer than expected global recovery. The imf will upgrade its growth forecast for 2020 next week. The rebound to prepandemic levels may take longer than predicted. Says global trade is expected to grow only 7 last year. Bank of japan governor here he go kuroda says the fallout from the coronavirus means Economic Conditions in asia remain severe. He says supply chains across the region have been disrupted, leading to business weakness and rising job losses. He says globalization will not change despite covid19 and the need for facetoface coming occasion remains strong. Australias delayed budget pushes debt and the deficit to peacetime records amid the widening fallout from the virus. The treasurer is forecasting a budgetary shortfall of 215 aussie dollars 215 billion aussie dollars. Which would be 11 of gdp. His speech came after the rba signaled its willingness to ease further. Dayal news 24 hours a powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Haslinda still ahead this hour, why australias budget may have missed the mark by delivering money to those who have nothing left to spend it on. We hear from a finance minister later this hour. Yvonne but up next, President Trump spurns the feds plea for a stimulus plan. What is left in the central bank armory. This is bloomberg. The imf in june predicted a severe global gdp contraction in 2020. The picture today is less dire. The recovery has progressed more quickly than generally expected. We believe we will be back to precovid time in terms of gdp level as of late 2022. The expansion is far from complete. At this early stage i would argue the risks of policy intervention are still asymmetric. Fiscal policy will play an Important Role in our monetary policy. This recovery is still uneven and uncertain. The curtains the downturn have not been evenly shared burdens of the downturn have not been evenly shared. We will continue to predict for 2021 a painful and uneven recovery. The outlook remains highly uncertain, in part because it controlling the spread of the virus. Haslinda cautious optimism from central bankers on the Economic Outlook and recovery from the pandemic. For more analysis, lets bring in rob carnell, head of research, a chief apac economist at ing. Lets get your reaction. Overnight we heard from trump saying the stimulus package is not going to happen, at least not before the election. Now he says he wants the house and senate to approve 25 billion for airlines. It does seem like he is trying to walk back what he did overnight. Rob it does seem like there is a bit of damage limitation going on. It is an interesting one. It looks as if he has taken ownership of the fact that we are not going to get a fiscal stemless before the election. Stimulus before the election. It is a very odd decision. Suggesting they immediately support these other small measures in comparison is one way of trying to deflect blame back onto them. Haslinda put it in perspective. 25 billion for airlines, 135 billion for paycheck protection. How far will that go . Rob a number of states in the u. S. Are already struggling to support the paper check the paycheck protection schemes. They are running out of money. The democrat suggestion over a house built that was passed was aimed to sort out some of the shortfalls in state financing. That was not something that trump accepted. What you get are shortterm interim measures from unused spending which could be put to work for a couple weeks. It gets you closer to the election, perhaps just past the line, maybe stops trump being blamed for any stoppage in benefits payments that might happen without this. Yvonne we heard from jay powell the fed chair as well saying there is a need for more stimulus. The risk of doing too much is worth more than doing too little. Do you agree with that stance . Rob i think it very much depends on your timeframe. Fiscal policy is less of a risk than monetary policy. The real issue with fiscal policy is the more you spend, the bigger potential cliff you generate when you stop spending. You have to bear that in mind. Automatic stabilizers get around that because they start drifting out as the economy starts pushing through. These big handouts, they do beg the question, what do you do when you stop paying it . What will prevent the economy from hitting a fiscal cliff and technical recession . That will always be a problem with fiscal spending, so i am not entirely in agreement. Yvonne we are seeing some of the Central Banks in e. M. Asia selling debt just to finance fiscal stimulus. Thehat a worry to you of fiscal sustainability of this part of the world . Rob india has been tumbling with this a little bit dab bling with this a little bit, indonesia and the philippines. Times, markets would have thrown up their hands in a marketsnd sold the bond of these countries very sharply. We are not in normal times. We have covid19 as the rulebook, so so many things have been ripped up and they are getting away with it. Because of the huge amount of liquidity, people are willing to let this ride, but it could be something that comes back to haunt them later on. Haslinda im wondering for the fed in particular, is the ball now back in its court with a stimulus package on hold . Do you think the fed exploring options like longerterm maturities as its q. E. Plan, is that an option . Rob i guess it is an option. One thing you will never hear the fed or any other central folks, theyl say is have nothing left of any real relevance. They can go down those routes. They can dabble with flattening yield curves a little more. Ultimately you have to ask, what good does that do . Getd it do any more to target fed funds rates even closer to zero than they already are, having roughly ruled out negative rates . You come back thinking this is all pretty marginal. It is fiscal policy required now. That does not seem likely to come through. Haslinda in asia, how encouraged are you by the recovery we are seeing in china . It is golden week. There are reports tourism is back in full force. 80 of what we saw in 2019. Is that sustainable . Are there limitations . Rob i think it is frankly amazing what china has managed to achieve by invigorating its internal tourism market. Getting people to travel to other parts of china, has the Transportation System going again, retail spending picking up. The airports are seeing benefits. The people delivering the services are also benefiting. It is part of the economy. There are other bits which are not faring so well. The rest of the world continues to struggle. They have gone a long way with this relative to the rest of the world. It is an impressive picture. And there is no reason it should completely slip off its face. You have to think incremental moves from here would be harder to achieve. Yvonne what kind of economies benefit from that china growth story . We were showing a chart how there is such a growth region has contracted this year. Rob that is right. Most economies in our apac region are seeing some form of economy. What china is doing is great in some ways. It is exactly what it needs, but it doesnt help many other people. To the extent that chinese people, internal tourism, spending on chinese delivered services is what most stimulus should do, have a very low import leakage. That means the export to surrounding countries are not particularly going to benefit. Goods are being made in taiwan, south korea that could be feeding into this. Yvonne thank you rob carnell from ing joining us from singapore. Coming up, balancing chinas influence. Pompeo calls on india and japan to counter coercion from china. We have the highlights from their meeting next. This is bloomberg. Haslinda welcome back. Trump is busy, tweeting yet again he is willing to sign a bill authorizing stimulus checks. Earlier we talked about how he said how the house and senate should immediately approve 25 billion for airlines, 125 million for paycheck protection. Those headlines coming in fast and furious. He is saying he would like to see the bill authorizing stimulus checks immediately. Says 1200 will go out to our great people immediately, i am willing to sign that right now, are you listening, nancy . That is the latest tweet from President Trump. Some measures to alleviate the pain when it comes to those needing the help, especially when it comes to hospitality, the travel sector as well, and perhaps now consumer spending. The markets seem to be reacting marginally. Lossesix today paring from the tweet of the president. The socalled quad security block have wrapped up its ministerial meeting in tokyo with u. S. Secretary of state mike pompeo calling for the region to counter coercion from china. Stephen engle joins us from our studio. Tell us what the Key Takeaways were. Ephen 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 socalled 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 chinas 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 those comments of the japanese counterpart, saying he is satisfied to see the indopacific concept gaining wider acceptance. Not gaining acceptance by china. China consistently blasted this concept which came about more than a decade ago, initiated by shinzo abe. China saying this attempt by the quad is to form an exclusive clique and foster a new cold war. Haslinda how are these kinds of gatherings affecting the global view on china . Anphen well, that is interesting question. Depends on the perspective you are taking. There are two developments on that front. At the united nations, there was a statement signed by 39 nations, mostly western allies, but includes germany, the u. K. And United States and others condemning china in the u. S. For what they in the u. N. For what they consider human rights suppressions. Quite a sharply worded statement, saying widespread surveillance, disproportionately uighurs. To target European Countries also mentioned they came under immense pressure from china not to sign that document. Still 39 did sign that statement. Chinas allies in the u. N. Shot back. Pakistan put out a statement on behalf of 55 countries, expressing support for their moves in hong kong. Cuba presented a statement on behalf of 45 countries supporting chinas counterterrorism efforts. Separately there was another pew report, Pew Research Center put out a statement saying the negative perceptions of china have increased exponentially in 9 of 14 countries. People in 9 of 14 countries saying their view of china has deteriorated considerably. The Pew Research Center is considered to be a nonpartisan group. Haslinda bloombergs stephen engle. Lets look at where we are in terms of the market. Slight change in sentiment after trumps tweets. We have markets inching upward slightly, currently in positive territory after trump suggested we could provide help for airlines and paycheck protection. Futures pointing to a flat open. Lower on the s p. Alicyyen aussieyen, popular risk of appetite. Keep it here. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Its 10 29 a. M. In hong kong and shanghai. Wordare the first headlines. President trumps doctors say he has no symptoms of covid19 as he recuperates at the white house. Sources say he wants to return to the oval office quickly. Americas top military officers eyeing quarantine after potential exposure to the virus. The general is selfisolating after the Vice Commander tested positive. Facebook is robing removing all instagram accounts linked to the qanon group. The social Media Company previously only band and that called for violence. Followers of the qanon conspiracy to leave President Trump is fighting against a group of elite pedophiles and government, business and media. Has died at the age of 65. Disco off the chart in the late 1970s. The band is among the top 20 best selling groups of all time, and was inducted into the rock n roll hall of fame in 2007. Rolling stone said eddie van then was number eight in top 100 guitarists. A true rock god. News, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Taking a look at markets, President Trump is breathing life into these markets. Just giving the tweets storm we have seen in the last hour or so, talking about more stimulus checks, potentially, and telling congress to approve a bill when it comes to aid for the airline sector. We have seen a massive reversal when it comes to the asian stocks. The topics saw a spike topix psi spike. U. S. Futures are still flat. Not seeing a lot of risk sentiment that has improved. But certainly it will bode well for sentiment at the very least, that trump is doing damage control. Nifty features are watched at the rbi meeting. Laterl have that decision on this week. Aussie yen is still looking like slightly risk on. Bloomberg dollar index is Still Holding to those gains that we saw i made this haven bid. With are taking a backdrop 1884, well below 1900. Brent crude lower by close to 2 on some of these concerns about stimulus negotiations that have been halted until after the election, possibly. Take a look upon markets. A bit of a reversal after the melt up yesterday, that reflationary trend. Now we are seeing the aussie threeyear Holding Around the record lows at 13 basis points. Your aussie 10year yelled at 85. Air asia announced the debt restructuring plan. The stocks are slightly lower by 8 10 of 1 . We are watching tech stocks in hong kong up by 1 10 of 3 . We are watching the out performers of the day. Tech giants ranging from amazon to alphabet, google are under attack. From u. S. Report lawmakers could lead to the companies being broken up if approved by congress. Su keenan joins us. This is a 16 month probe into allegations. These monopolies could squash the competition. Su it is a Democratic Congressional panel, and it came out with damning conclusions about those allegations about anticompetitive activity. Biggest techr the companies, amazon, alphabet, google, facebook, are described as gatekeepers. They pick winners and losers and squash competitive threats. Holds no punches. Here is one of the harsher quotes. Companies that were once scrappy, underdog startups that challenged the status quo have become the kinds of monopolies we last saw in the era of oil barons and railroad tycoons. These firms have too much power, and that power must be reined in and subject to appropriate oversight and enforcement. Our economy and democracy are at stake. , theses to say recommendations themselves are some of the strongest the have been seen in decades. Law thatg the kind of could lead to a complete overhaul in the tech industry. As pointed out, this is a democratic committee. The republicans have largely shunned the report. Walk us through some of the reports key recommendations. One of which is that laws should be put in place to keep Tech Companies from owning other lines of business. What are the implications of that . Su the implications are that these kind of laws would prevent Tech Companies from owning different lines of businesses and could lead to a mandate to break the companies up. Here is the recommendation in the report. These big tech firms to use their dominance in one market is negotiating leverage and another, then to capture umbrella markets have the effect of spreading concentration of one market into others. It committee believes threatens greater and greater portions of the digital economy. These major firms are spreading their influence and domination everywhere. And the report really is recommending structural separation, prohibiting a dominant platform from operating a competition with the firms dependent on it. Much like they did with the banks in the 1950s. They barred big banks from getting involved with smaller real estate savings and loans. So it calls for line of restrictions and limiting the markets in which a dominant firm can control a lot of the suppliers and smaller firms. This is something we are hearing from various companies. From amazon, to apple, to google and facebook. There is a lot more to come here, but clearly, this is a shot across the barrel in part, the lawmakers are looking seriously at restructuring major tech firms. Back to you. Yvonne certainly something those that are long tech are looking at, the regulatory risk. Su keenan there. The pandemic is threatening to erase gains on gender equality, as womens women lose jobs at a faster with r faster rate. Is joining us. This is bloomberg. Weekly time for our equality segment that focuses on the disparities of race, gender, income and sexual orientation. The World Bank Says the pandemic is exacerbating risks for women and threatening gains on gender equality. It adds that women have lost jobs faster than men as they are more likely to be employed in sectors hardest hit the lockdown. Thats discuss all of that with the world blank World Bank Global director. Thank you for joining us. Why do you think the covid pandemic has disproportionately affected women more than men compared to other economic crisis we have seen . I think it is a confluence of factors that have really come together to hit women harder. First its the fact that the hit women harder because of the health consequences. Has beene mortality hard hit, its higher than beare mortality, but women all the responsibility for kerry. They have reduced Financial Security when men in their household pass away. They are responsible for their children, and because their situation in the labor market, they are in lower paying sectors of the economy. Thatmay have businesses are less profitable. They have reduced Financial Security. The consequences of the Health Crisis and the economic crisis have hit women in much harder ways. And there are a lot of Different Things we can go into. Yvonne walk us through what the impact really is. Then the first impact is economic domain. And i already mentioned that. Increased job loss, reports from around the world. The sectors where women work have higher unemployment in the sectors where men work. So you are thinking about retail, tourism, hospitality and food, retail and services. Those things are not coming back in very big numbers. Women tend to predominate in informal employment. Those jobs are very precarious. They dont have access to social protection and social assistance programs. For instance, when markets shut down women cannot go out. Thats another economic impact. There are Health Impacts that i mentioned. Services may be disrupted. For instance, hospitals, Services Like maternal and Reproductive Health services. Women may not be able to move around to get to those services. Those are Health Impacts. In the education sphere, girls may be harder hit than boys. Girls have to watch younger siblings, they may not have access to smartphones in the household for distance learning. And what we learned from previous crises, like ebola and sars, girls did not return to schools in the same numbers that boys did. The final implication is what i called the shadow pandemic, and that is the increase in violence against women. With shutdown, with reduced mobility, we have heard, around the world, increased reports to health lines help lines, to shelters, increased reports of abuse. These impacts are quite severe. Haslinda i want to talk about the digital divide, if we know the pandemic has highlighted this issue, about 300 million women have no access to mobile internet. Is it about work, and how do you even begin to address the issue . Caren that is a really important issue. I think that the World Wide Web foundation have all estimated that 300 million fewer women have access to internet. We also have a big access in ownership and control over smartphones and technology. This is important because with systems moving to remote options , access to internets phones being more crucial comment its crucial to go back in terms of economic recovery. All of the solutions for this crisis, in terms of social protection, having access to digital payments, being able to ewalletash over an and so forth, we need to address the gender digital divide. Governments are accelerating access to infrastructure, broadband. They are transferring their government to people payment platforms. They are moving away from cash and making them digital. Unless we put womens access to Digital Services at the heart of these new platforms, we will exacerbate preexisting inequality. In the telecoms have a role to play. They have a role to play in providing, for instance, performance incentives, and other things that can help technology,et the keep the technology for men and women and boys and girls. This playing is out in countries like india, where women account for 50 of the population of less than 20 is theomic activity government doing enough to it morehe gap, or make palatable . Caren we have been working with many governments in south asia, east asia and the pacific to see how they can provide shortterm temporary measures to help populations just survive, to be able to get them the health care that they need. We have been providing a lot of support to governments to strengthen their Health Systems, but also to strengthen their social systems. India is a country where we have financed a very large lending operation to help them extend social protection to many people who are excluded. Whether they are informal workers. India is a really interesting economy. Mainly, what the government did in the first part of the crisis was to provide food. That was particularly important because food systems were disrupted. And they are still providing food subsidies, whether it is wheat or rice. But they are also providing cash. I have to say no government is there yet. We have too many people who are still excluded from those types of systems who need access. I think the thing that is very difficult in india, like many other countries, a have a large amount of women who are entrepreneurs were selfemployed. They need the support Small Businesses my need. They may not have access to capital and liquidity. Those systems, the financial to bes often need strengthened to serve those segments of the population. Beene the world bank has approving many loans out there with this pandemic. I was wondering if you could tell us more about the ones that are actually gender responsive policies as well . The world bank is making available up to 160 billion to countries who need and who want financial assistance. We are making support available to strengthen Health Systems Health Systems, to make necessary equipment, vaccines and so forth. We are also providing support for governments to initiate the social assistance program. And also to help the private sectors through our private , where we have a billion more available to support a private firm. And i think for women and the gender gap, there is a number of things that i think is really important. Four areas the government needs to focus on. The first is ensuring health care for reproduction. Also adequate services for genderbased violence. Second, the social protection, we need to extend the systems for unemployed women. Of informal largest systems and they need to come into the systems. Communitybased approaches. Local governments have a role in helping local governments to provide food security, cash assistance and so forth. The third thing i think is critical is the area thats most missing his support for care. Care for children and care for the pandemic. Care is the invisible part of this pandemic. Women are spending twice the amount of time with school mobility, with reduced with increases in illness and spending much more of their time in care. And there are some countries, including here in the u. S. But we are afraid women will not return to the labor market. Unless we see care, child care, economic infrastructure,s countries cannot recover. Carin. Ren investing in education and subsidizing childcare. Angie for your work and effort. World blank World Bank Global director for gender. Thatalia unveils a budget will push the deficit to a record. We will hear the response to critics. This is bloomberg. Australias delayed budget pushes debt and the deficit to see records amid the widening fallout from the coronavirus. Is forecasting a budgetary shortfall of 213 billion aussie dollars, 133 billion u. S. In fiscal 2021, which would be 11 of gdp. His speech came after the rba showed its willingness to ease and boost the economy. And create jobs. Yvonne they have drawn some criticism. Cuts arethat cash ineffective and wont address unemployment. Lets bring our Bloomberg Opinion columnists, he shares that view. David, tell us. What does the Australia Company need as a recovers from this pandemic . David i think a lot of things are going very right. With theess coronavirus, including the recent outbreak that was going on down in victoria until recently. The total cases weve had is about 27,000, which is fewer than the new cases each day in america. Pretty much every day since june. All of that is looking good. The problem is that the economy is still on the floor. A big factor there is that if you look at household rates, there is a lot of uncertainty and worry. People are saving 20 of their household income, where as normally you are down at 4 or 5 . We really need to get that money flowing and get people spending. I think there is not enough in the budget to make that happen. You are saying that it economy. Support the what really is the problem . David i think there is stimulus that bringing forth these income in cuts are kicking and 2022. But one thing we know very well about economic stimulus is that you need to give it to the people most likely to spend it. Lows generally people on income. People worried about losing their jobs, or just people whose spending is very constrained by they are up against the limits of their income. Will affect be upper half of the income distribution. People like myself, i have not been able to spend my income. Its hard to spend your income and an economy that is constrained by coronavirus, even as a recovers. I think we will see a lot of this money that ends up saved. And the money needs to be spent. Tell us what the government is doing right, and do you think there is a chance that the measure that they are doing could get australia out of this recession . David they have done several things early on very much right. Toy set up the job program keep people in their jobs while it was a temporary decline in output. Ma increased jobs. Historically been very small payments. That has helped the economy flow over the past few months. That is why i think australia the smallest downturns among the developed economies in the coronavirus. Both are slated to expire over the next six months. So already people are going to be cutting back from that and they really need to extend them. I think they could also do with cutting the sales tax. We need to have strong incentives for people to spend. And a temporary reduction sales tax would do exactly the right thing. There is other stuff they have done right, Global Support for Business Investments through accelerated depreciation. That would be welcomed, but it really does need to focus on the australia is ultimately a consumer economy and we need to get the consumers spending if you wanted to recover. Opinions bloombergs david, lets do a check of the latest business flash headlines. Puttinge is said to be more than 1 billion into the ipo. As early investors lineup for a slice of the action. The state investor is looking into both the hong kong and shanghai listings, which could bring as much 5 billion. Chinas National Council for Social Security fund with shares in shanghai. Apples top iphone assemblers are among 16 companies that can now manufacture devices in india as the government aims to attract foreign production. These groups are on the list of suppliers. Exported. Ected to be air t to diversifying the operations away from china. Take a look at markets. Looking a little better in the last hour after the tweet storm we heard from president talking about targeted measures to help some of the hardhit areas of the economy. Like the airlines, stimulus checks, he is urging talks to move on. Its pretty much flat for asian equities and risk assets. Flat for u. S. Futures. Nifty futures still touch higher as the rbi policy meeting starts today. Aussie and Holding Around 7521. Bloomberg dollar index is cutting a bit. Gold and brent taking a bit of a retreat. Gold very much so back below that 1900 level here. 1885. We have plenty more in the next hour of Bloomberg Markets asia. Stay with us. This is bloomberg. Haslinda its almost 11 00 a. M. In singapore and hong kong. Welcome to Bloomberg Markets asia. Man, here areonne the top stories. Asian markets are awaiting President Trumps latest tweets on stimulus after his decision to end talks with democrats on a wideranging package. He says he supports individual payments and support for airlines and paycheck protections. Apples top iphone assemblers are among 16 companies that can now manufacture devices in india. As the government aims to attract investment from abroad. Mike pompeo calls for unity in the face of chinas growing ambition. He says the socalled squad must Work Together to counter communist party version. Haslinda lets do a part coersion. D haslinda trump said there needs to be help for the airlines and paycheck protection. Ling back talking about until after the election. Have beens fluctuating in negative territory. A boost of the dollar up by 10th of 1 . That is impacting gold. Gold seeing the biggest slump in almost two weeks. But some say dont rule out a u. S. Election turmoil just yet. It is currently below the 1900 level. Take a look at cross assets. You mentioned u. S. Futures in the s p. Now futures are also reversing with the losses flat. Aussie and is catching a bit. You are seeing the 30 year yield. Pretty much of what we saw yesterday had a melt up and then a meltdown after the announcement from President Trump halting these tops until after the election. Brent crude taking a leg lower below 32 for brent right now. Take a look at markets. We are seeing a mixed picture when it comes to asia. China will close for the holidays with the hang seng upbeat by 101 points. Australia with the new budget. We are seeing most of the sectors looking pretty good. Some saying there are no new losers in this. Shares up a 10th of 1 . Manila going the opposite direction. Down from 1 . Kospi is a touch higher here today. Karina mitchell is in new york. A lot of in flex in the markets. The imf and a bt oh are worrying about a bumpy global recovery. The imf will upgrade its growth forecast for 2020 next week. It may take 12 months more than frist predicted. The wto is now saying global trade is predicted to grow by 7 next year compared to its earlier forecast which was three times as month. The bank of japan governor said the fallout from the coronavirus means Economic Conditions in asia remain severe. In a speech he said supply chains across the region up and disrupted, leading to business weakness and rising job losses. He said globalization will not change the fight and that the need for facetoface Communications Remain strong. The European Central bank echoed the feds policies saying the recovery needs urgent fiscal and monetary help amid the rising virus cases. The president and ecb chief economist said they were going to face a cliff edge if eight was held back. Their own recovery will have a halt as infections climb and social curbs are reimposed. Australias rate budget poses pushes debt and the deficit into widening fallout from the virus. The treasurer is forecasting a budgetary shortfall of 213 billion aussie dollars. Thats about 153 billion u. S. In fiscal 2021, which would be 11 of gdp. It came after the rba signaled its willingness to ease further to boost the economy and create jobs. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. President has taken to twitter to say he supports checks for individuals, as well as aid for airlines and paycheck protection. Tough follows is abrupt announcement that he is ending talks in a wide range of stimulus talks until after the election, it triggered a risk off moving the markets. Lets get to our Senior Editor derek wallbank. The president s out of the hospital and back in the white house. The twitter game is back once again. It looks like we could be getting some stimulus after all. Derek i would not read a ton into these tweets right now. I see the market moving, i watched it move and my first thought was, i cannot wait until 11 00 for when i come on and talk about this. This is a reiteration of the white house a stance. This is not a new negotiating position. This is a reiteration of things at the white house has said it would want to do. The Trump Administration has previously signaled it would be happy to do a piecemeal approach, but lawmakers in both chambers of congress on both sides of the aisle has said they need a package that is more comprehensive. That is what donald trump called off. What the president called off earlier today. These tweets you are seeing does not necessarily mean that we are any closer in any way at all to a stimulus deal in the United States. I just want to put that out there, front and center, full stop as we start this. Haslinda it is kind of mindboggling, right . Had priced in this and then had a change in hartford donald trump. What happened . Whats behind this reversal . Where theis a thing talks on the full stimulus package had seized up on a couple of issues. One was the overall price tag. They were a fair bit apart on the overall price tag. Ae second was that there was lot of question among republicans about whether or not this was going to be a beneficial process overall. Whether or not this wish us giving up too much, pumping money into the economy that may , andctually help a ton whether or not it was better to just not do this. So i should be really clear here. Its not necessarily universal support within trumps own party for another massive package going on. What trump is trying to do is hes trying to say, look, if you will get me something that is limited to the provisions that i really want, these individual things, either individual checks, individual money for airlines, additional money for Small Businesses, then im happy to go with that, but i dont want the rest. The problem is that democrats are saying, that is not the only problem that we are facing. Local and state governments havent absolute because theyve got revenues that have cratered because of lower taxes that have come in during this coronavirus situation. Arethat means that you talking about health departments, that means you are talking about schools that have less money. Infrastructure and things like that. Kosts are saying democratic plan is higher, they are saying all that trying, but we also need this other stuff over here as well, or no deal. Real quickly, who is actually to blame for pulling out of these talks . Is it really President Trump who is willing to take responsibility or is it Senate Republicans . Derek i think you will hear everybody blame everybody else coming up. That is the quick answer here. And look forward to the Vice President ial debate. Im sure it was im sure it will be a massive topic of conversation. Yvonne we will leave it there. Eric wilding, our Senior Editor joining us from singapore with the latest on the twist and turns when it comes to this fiscal debate. Taking a look at whats ahead this hour. Will the Squad Alliance upset chinas trade in the region. We will have the trade director giving us her take. Speaking to the Portfolio Manager as asian markets react to trump abandoning those stimulus talks. This is bloomberg. Lks. This is bloomberg. Yvonne just keeping up with the latest tweets from the president. Talking about some targeted measures in light of him telling the negotiators to end the stimulus talks yesterday. Lets talk about the market impact. We have seen a bit of a reversal. Trump putting a little bit of life in the markets. The manager at age bring investor joins us. Im sure you have been following all of these headlines. What do you make of the price action and how crucial is this now that we wont have any negotiations moving forward . Nupur good morning. The fiscal policy package with the markets leaning forward for the last two months is definitely important. We saw from trump yesterday puts a little bit of a disappointment from the perspective that we may not get further fiscal policy support for the next few months. That, we think you are always going to get continued headlines over the months ahead of the u. S. Elections. Market volatility will continue to remain quite high. But whats important is for us to focus on the fundamental and data that has started coming out. We saw both the fed and the ecb yesterday talk about how important continued fiscal support is. There is still substantial capacity in the economy and continuing the fiscal support through the rest of the year is going to be extremely important if you want to see Economic Growth continuing. I guess the election, what was never a hard deadline for the fiscal stimulus talks anyway. So does it at least take out that shortterm uncertainty around the Political Uncertainty around these talks, and markets can just focus on what will happen november 3, the election outcome . Nupur its hard to say because this has been a fluid situation. You can always see fiscal talks come back on the table, especially as the data or as other policymakers put more pressure. I would not necessarily say that the market can just focus on u. S. Elections. It intertwines to a large degree. If you see that fiscal package is not happening until the elections, we think the markets will take that negatively. It does seem like, as investors they should look beyond november. And if you look into perspective, it is risk on. It is lower for longer and that is enough to support it. I think both monetary and fiscal policies, we have seen it be extremely supportive and you will see some volatility over the next one month, but i definitely think the risk on position is still equities looking undervalued. Collection you saw of Global Equities set this up for a pretty decent value into the year and. And we saw an improvement in fundamental Economic Data from the u. S. Has expanded into other emerging markets. If you look at latin american economies in particular, equities in brazil and mexico are down between 25 and 40 year to date. Really behind the rest of the world. Economic activity and data is surprising to the upside. The forecast is to grow at a healthy pace animals 50 . It seems like you do have strong sentimental data backing the fact that you would see a rally into year and. Volatility will continue. From a portfolio context, we are trying to remain as diversified and nimble as possible. Haslinda in terms of where to put your money, equities over bonds, asia over rest of the world, is that a Fair Assessment . Nupur equity over bonds, for sure. Asia, i would say has done a large part of its rally already. We have seen in china, korea and taiwan. We repositioned more towards a latin america for the reasons i mentioned. Opportunity seems to be with any emergingmarket equities. But overall, u. S. Equities are still attractive, but you have to be quite selective by focusing more on what slagging the market year to date. Equitiesll, definitely. Are you in terms of value over growth . The value site has been a pain just peoplets not trading on growth prospects, but with something more tangible. We are seeing earnings are looking a little bit better in terms of earnings upgrade. Do you think that can lead to outperformance . That is really the question of the decade. Value has been a perennial underperformer. We think that if you really want to see a sustained outperformance of value, you need to see yields increase. You have seen 10 year bond yields be a downtrend for the last decade. And even though Economic Growth in Economic Activity have picked are10 year bond yields still well below 1 and well below the levels that they were in january. For values to pick up we think there are opportunities in value sectors. If you look in the u. S. Equity markets and financials, still pretty deeply in the negatives here today. And it is starting to pick up for u. S. Banks. We think search and values like financials and industrials do present some opportunities. But you would call it a blanket value versus growth is probably too early to do that. But you can definitely be selective and pick certain stocks. Yvonne thank you. Coming up next, time for our morning calls. We look at some of the top Analysts Recommendations across asian markets. We have plenty more ahead. This is bloomberg. Yvonne a quick check of the latest business flash headlines. Hazlitt is talking about a deal for nickel to avoid a supply crunch. Pricing. Ons include inola is a vital component ev batteries. Only aal is currently small part of the business. Aviation regulators have issued proposed new Pilot Training requirements for the suspended boeing 737 max. One of the final hurdles needed to be crossed before the plane to return to service. Flight crews will have to be trained and tested, including changes to the system implicated into fatal crashes, as well as a redesigned Flight Control computer. The collapse of air travel is forcing then there to slash its schedules. Flights will be cut by 80 from now until march with the carrier aiming to operate around 75 services each day at home in europe, and globally compared to 350 in 2019. They hope to continue flights to japan, hong kong, thailand and china. Haslinda lets stay with airline space. One of the pioneers in air travel is in crisis mode. Air asia is proposing a dramatic shakeup involving restructuring. And a 90 reduction of Shareholder Capital to stay alive. Lets get the a the latest from our asia reporter. This is the only way the carrier can stay alive. That is what they have implied. They specifically said that the current liabilities exceed the current assets that they have. Meaning that, without the restructuring plan, the chances are they will probably have to go through a liquidation process. This is very critical for the survival of the airline. What does this mean when it comes to the backlog of aircraft that has been on order from airbus . To be a keyins question right now. Air asia is the biggest single customer for airbus. Clear whether they will be able to maintain the orders that they have put out there, whether there has to be negotiations, then needs to be discussed between airbus and air asia x as part of the plan that air asia x has put forth. What is the plan going ofward for air asia in terms hoping it regain some of its of business back . Asia x has made it very clear they are not going to be going into these massive except that they had taken it before covid19. They will be very conservative and work with a fleet of up to 20 58 330 aircrafts on the fleet. On fivehour, sixhour time range for their flights. Phase ande aggressive aggressive expansions are pretty much over for air asia for the moment. You are watching all the airlines. Is this probably one of the worst cases we have seen with air asia . Over across the region, is there any sign that some of these airlines are still going to survive in one to two years . That is the biggest question right now. We have seen Certain Airlines get backings from their shareholders. Successful inite raising funds. There have been the question of other airlines that dont have backing like some carriers do. Though still remain a question of whether they will be able to sustain. Obviously they will need the funds to sustain their business. And given that they have predicted that travel demand recover chip free covid19 era until probably 2024, we will probably see a lot more airlines, under cash strain. It does not really cover before that in. Our asia transport reporter in singapore with the latest on air asia as we see the shares tumbling from 10 . Lets get more from our markets reporter sophie kamaruddin. Or,ou are watching iron prices are holding gains. They are assessing what happens with chinese demand when they come back from a holiday. Exports areron or due to come. What is the outlook for prices . Sophie we have seen iron ore prices gain 30 . Commonwealth bank is forecasting williron ore prices average 112 in the final three months of 2020, given the recent market strength. Their weaker dollar has been a boom for materials. That lifted iron ore that 20 in early september, if you recall. Aussie yields, they are falling as markets wrap up expectations for easing. What is the trade . We are seeing the front end of the aussie bond curve rising for 10 basis points from the rba. There is the expected budget deficit and the plans for bond issuance. Thats driving the rallies. Is Going Forward, citigroup calling for a great up attention for yields to hit new growth on the longer end up where it is still looking positive. The city recommending aussie bonds. There also anticipating the markets will likely want a price for the rba for other policy tools and lower longer maturities when it comes to aussie bond. Treasuries are still staying quite from after the rally that we saw on tuesday. What is the effect that we could have on jgbs . Sophie we did see japans tenure close at the highest level on tuesday. It was retreating from that level. Seeing a slim chance that we will see the top five basis points, given that u. S. Yields seem to be capped at the peak we saw in june when it breached nine basis points. This on chances looking slim that the treasury issuance for 2021 will exceed 2020. So jgb is looking to be steady here. Haslinda markets reporter sophie kamaruddin. We leave you with a shot of a smoggy beijing. Beijing on holiday right now. The yen at 6748. Are you frustrated with your weight and health . Its time for aerotrainer, a more effective total body fitness solution. announcer aerotrainers 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 prestretch works your abs even harder, engaging the entire core. Then its the back extension, super rock, and lower back traction stretch to take the pressure off your spine and stretch muscles. Planks are the ultimate total body exercise. Build your upper body with pushups. Work your lower body with the aerosquat. The aerotrainer is tested to support over 500 pounds. It inflates and deflates in less than 30 seconds using the electric pump. Head to aerotrainer. Com now. Now its your turn to lose weight, look great, and be healthy. Get off the floor and get on the aerotrainer. Go to aerotrainer. Com, thats aerotrainer. Com. Almost 11 30 a. M. In singapore. We are in the middle of the trading day. After falling as much as 1 , singapore racing to open its areers, saying its futures at stay. Waiting another year for a vaccine to be widely available. Its looking at exploring a travel bubble to the likes of australia. Its get the first word headlines with Karina Mitchell in new york. Karina good morning to you. President trump has followed his ending of the stimulus talks by calling on congress to give money to support. He tweeted lawmakers should give cash for airlines and paycheck protection. He said there is unused money and he will sign a bill if presented. Stimulusier halted negotiations until after the election next month. Of amf and wto are warning longer and bumpier than expected global recovery. The imf will slightly upgradeds Global Forecast for 2020 week. He says the rebounds of prepandemic levels me see 12 months and first predicted. The wto is saying global trade is expected to grow by 7 next year compared to the earlier forecast. Rule out afusing to boycott in the 2020 to beijing winter olympics. He foreign secretary says was forced to separate politics and sports, but it may not be possible at the olympics. Many countries claim arbitrary detention in camps, forced labor and compulsory sterilization of muslim women. European union is ready to call theu. K. s bluff by ignoring brexit deal deadline next week. They are prepared to let talks roll on into next month, or even further, and potentially lead johnson walk away rather than compromise on the red lines. His stance onning a deadline. U. S. Tech giants have come into a battle. The 16 month investigation and 449 page report that follows describes amazon, google, facebook and apple as gatekeepers of the digital economy. They pick winners and lozada losers to snuff out competition. For hours a day on air and on quicktake, powered by more than 27 hundred journalists and analysts in more than 120 countries. This is bloomberg. Haslinda lets do a check on the markets. Asia looking flat. Reversing losses after trump called for assistance for airlines as well as paycheck protections. That comes on the back of him halting stimulus talks. Msci asia index is slightly lower. Futures pointing to a flood. Nikki nikkei 225 is coming back from lunch break, currently down by 3 10 of 1 . Open pointing to a higher up by a 10th of 1 . Lets take a look at where we are in terms of the hang seng index and the kospi. They are turning into positive territory where the asx is up by about 1 , inflating the massive budget with Government Debt at a record. The budget see lifting most aussie shares, especially construction and retails. We have taiwan coming up by 2 10 of 1 . Some saying dollar positioning is heavy as investors look for shelter. Yen at 10568. Gold holding onto losses as the dollar rises. Number, 1886. The major iphone assemblers are among 16 companies that will be able to manufacture products in india. There is the investment of more than 143 billion for mobile phone production. Its get more from our Bloomberg Technology reporter. Tell us more about this program and how big of a deal it is. It is calling the production linked incentive program. Pushing to boost Major Investments in the country. The Program Provides 4 to 6 stimulus. 15th firms have committed and 140 billion workers will receive those incentives. Samsungem are electronics and the Worlds Largest iphone suppliers. They currently assemble and humongous factories located within china. Haslinda how is the change in smartphone manufacturing . They already in make forms in , but have committed to make more and export to global market. The program in india is away on cashing in the escalating global trade war and capitalizing on the awareness that single country supply chains are risky, as highlighted by the coronavirus pandemic which brought productions to a screeching halt earlier this year. Importantly, i think for india tohas three major suppliers come into expanding their factories. Worlds most soluble phone maker expands in a particular region, it boosts the system. Give us a sense of what this means in the longterm. About two thirds of the production committed by phone makers, which is what hundred billion smartphones, well head for the Global Markets in the next five years. That boosts not just global manufacturers, but local and domestic smartphone makers as well. But its not all going to be smooth or a speedy. They lack the network of suppliers and train workers and Distribution Systems that china has built it mastered over the decade. They are fearful it could reshape the global demand. And actually shakeup chinas as the sole electronic manufacturing powerhouse of the world. Yvonne that 60 haslinda that 60 of production to be exported in the next five years. Come, u. S. In australia, india and japan to counter coal regime from china from china. Oersion this is bloomberg. ] haslinda we are bringing you live pictures from tokyo where the Japanese Foreign minister is inting the indian minister tokyo. Of course the two countries are taking the opportunity to meet him bilateral talks amid the quarter meeting that is happening in japan. For are meeting in asia democracy. As tensions linger between india and china. U. S. Secretary of state mike pompeo has been meeting his counterparts from japan, australia, india and tokyo as what is called the counterbalance to chinas lobbies in the region. The trade ministers of australia, india and japan are to strengthen supply chains. Joining us is the founder and executive director of asian trade center. I am just wondering, how much influence can these countries have on china . Think it depends. If youre asking a broad question about influence over china, potentially it could be significant if they manage to stay coordinated. If you are asking how much they china,er operations in the answer is much less than they would like to have. It took about supply chains and how countries are trying to pull their operations howof china and beijing, perspective is that, given the fact that beijing is set to become the biggest economy in the world by 2024 . Can they afford to do that . With most firms, the answer is no. As he pointed out, this is the Worlds Largest economy, or will be the Worlds Largest economy in the most dynamic part of the economy in asia. Goingyou were to say, im to abandon china entirely, that put significant pressure on your bottom line. And most companies have a cost of doing so and it simply too high as a benefit of being out of china is not high enough. I think most firms will potentially think about i first diversifying and how they continue to be overreliance on single sourcing. Mean it will abandon china and it does not mean governments can convince firms to do things that are not in their interest. Have some really unique and unusual circumstances playing out right now. What will it take for more economic invasion . What would you need to see for some type of fda to come about from the stalks . From these talks . Deborah i find it hard to imagine there would be an fda with asia in it. They have tried for years to get india as part of the comprehensive Economic Partnership but india pulled out of the last moment. I suspect something similar what happen if the quad try to create. N ea fta that say they managed to create an fta between them. The challenge is that these are not necessarily for countries that do a lot of trade with one another, i that could somehow be an economic rival to a china or even European Union. You generally trade more with people who are close to you and the u. S. , australia, japan and india are not close to one another and dont necessarily have an economy that interacts that often. Yvonne we just talked to our reporters in india about this big contract with these iphone manufacturers and winning approval to make products in india and that shocking 143 billion in investment. Does that not seem like a game changer to you, that potentially india is in the right direction of getting into becoming a manufacturing hub . Deborah no. Any to wait and see a bit longer whether these announced plans materialize. A lot of firms are excited about the prospects for india. Its always on the horizon of being the next great superpower, the next great economy. And then trump has tried to do business in india and a discovered very quickly that it is considerably harder, longer and more expensive than they ever imagined. I think the same thing may theen in manufacturing funds, which sounds a good fantastic idea. A billion plus consumers in india, they need phones, everyone else needs phones. When you try to set up a factory, try to reduce workers and deal with the paperwork and logistics, taxes, all of the things that matter for a firm, it becomes less attractive than it is originally appeared. Than it originally appeared. Haslinda when you talk about how economies are benefiting. India is the closest to being able to dislodge china as a manufacturing hub. There is no other alternatives. Deborah there is a huge amount of potential and india. Isyou wanted to say, where the most likely location for manufacturing besides china, it would be india. The what i have seen, based on evidence over the years is, that inability often of the Indian Government to get out of its own way. So it announces sweeping policy changes that are then not implemented or have been implemented, and then that result has considerably less actual promise. So india should be a powerhouse, it should be benefiting from the u. S. China trade war for the last two years. It should be benefiting, at some point, from the disruptions of the pandemic because people will be looking for alternative locations. But in order for us to deliver on those promises, its time for the government to actually deliver on its old promises. And they remain a skeptic. I would like to not be a skeptic, but i remain a skeptic based on experience and watching indias behavior compared to promise. There is so much discussion right now about a bipolar world. Could we be looking at a try polar world . Asia, north america, europe all with their own supply chains . Deborah i think we will see more regionalization of supply chains. Where it becomes complicated is the regulatory space. We see this most obviously in the tech war between the potential tech war between u. S. And china, but the european should not be discounted. They are actively making regulations are different types of policies. Be firms that may need to be in or near europe. Firms that Service China or to be in or near china. That service the United States need to be in the u. S. Are north america to do so. Assessed a ks, particularly around regulatory policy, and we will see it world that is divided that is smaller, and that is considerably more expensive for everyone involved. I am looking at a chart right now of the trade deficit that the u. S. Has with china. And despite what President Trump has done the last four years with tariffs, with all these different types of policies, with tiktok, that trade deficit has really remained nowhere. It has basically remained the same. Even if we see a biden presidency, do you think any of this will change . Deborah i think we are seeing some changes, and they will continue to provide. Particularly the u. S. Political towards china is not going away, no matter who sits in the white house. And that will have policy implications, which will then have business implications. I think there will continue to be challenges between the u. S. And china. Want, a government may trade deficit or trade flows or on shoring, whatever. Unless that is met by policies that changed the benefits, i think firms that just dont generally respond to the government saying, we really like it when you do this and we dont like it when you do that, because the firms leg, i would love to help you. But unless you are changing the constant benefits, why would i do something that makes no economic sense . I could run my firm out of business trying to follow the if ice you are giving us. Yvonne you also say the u. S. To play the same type of tactics that china had done for businesses that are operating in china. With the tiktok issue in the u. S. , the are basically forcing this company to divest, to join into these joint ventures and take a page from beijing. Morethat make it much difficult for any nation to push for china to change its ways . Deborah i think there are a lot of challenges ahead. When youre asking about a potential biden administration, while i think the overall levels of hostility might be similar, i do think the tactics will be different. So its possible to imagine that you will see fewer to talk divest met arguments coming by way of executive order on the biden administration, and that there may be other ways, and in particular, i think thats part of the idea behind this meeting. Other ways to collectively pressure different types of behavior out of china and anyone else that is in a similar kind of category. I think you will see a difference Going Forward in the kinds of tactics that are chosen, even if the overall objective remains more challenging than it was. How about u. S. Japan relations . What would it mean if biden were to come to power . Deborah i think it there you will see a difference. Where we have a general bipartisan consensus that something needs to be different with china, japan, i think there is room for a bite administration to reset a relationship with japan that has gone a bit backwards over the trumps term in office, which is highly unusual. The United States has always had very strong and warm relations with japan on Economic Issues and political issues, etc. That has gotten tested over the last four years. I do think in a biden aninistration you have opportunity to reset u. S. Japan relations and ways that could be more helpful. Other things potentially confronting china. And also doing with a bifurcated how itthinking about would be if the European Union doesnt sneak in and so forth. Thank you so much for sharing your insights with us. On where Indian Markets are right now. The rest of asia is fluctuating. Lower byndia opening 2 10 of 1 . We have our losses for the rest of the benchmark. India is set to post strong earnings and demand is getting well underway. We are keeping a watch on consultancy, which is kickstarting aussie earning. Expecting to post profits. On technologies expected to raise sales targets as well. That rbi meeting the has started today, with some new members, three of which goldmans saying is looking in. He dovish direction a lot could play out on friday when they do mean. Take a look at australia. Hands down, a massive deficit spending plan to jumpstart the economy, but critics say it fails to target the most crucial problem. We will hear from the finance minister next. This is bloomberg. Yvonne tax cuts for millions of australians in a plan to boost employment for young people headlined australias blowout budget. The taxes are ineffective in the measures wont be enough to tackle the jobless rate set to peek at 8 . Us theance minister told economy remains fundamentally strong. Ourinda our account economy was in good shape before the pandemic. Our economy continue to grow at a time when other economies were struggling. We were in our 29th year of continued growth. And the fundamentals and the australian economy remains strong. We have been pursuing a progrowth, proopportunity agenda, including by pursuing a very ambitious free trade agenda. Giving our dues is the best possible access to key markets around the world. Lifting the proportion of our trade that is subject to Free Trade Agreement to 76 . Be in thetinue to part of the world, the asiapacific, were most of the global Economic Growth will be generated for decades to come. Unexpected by an crisis. But the fundamentals are strong. We just have to get all of that incident about to ensure that businesses get themselves back into that wide trajectory. Have beenthere special considerations that may especiallycovered, given the International Tourism will not be up and running properly anytime before 2022 . Mathias we are providing support into the economy on a economy wide basis. We are not picking winners specifically, but there are special support for those sectors of the economy that are more severely impacted, like the aviation sector and tourism sector. By am large, what we are seeking to do is provide, i guess, incentives by a sector neutral basis so that in the free markets, business is looking for opportunities to grow and prosper in this new environment are encouraged to do the best they can to get ahead. The principles of the free market continue to be the best recipe to lift Living Standards and to maximize opportunity for the individual people to get ahead for their families, for their families to get ahead and the communities they live in to get ahead. The budget shows a lot of labor market slack with unemployment at 5. 5 come 2024. The rba reiterated that boosting National Employment needs to be a priority. But if you look at this budget, the level of Government Spending falls dramatically. How would you expect to get domestic consumption, unemployment and wage growth it seems going when like its not possible to maintain this level of spending . Mathias jobs, before this crisis, and when we get beyond this crisis, will overwhelmingly be created by successful privatesector businesses. The crisis,nt into nine out of 10 businesses in the australian economy are created by privatesector businesses. That is a situation where we need to get back to. We can maintain a situation where the government and taxpayers continue to spend at this crisis level. We were very focused on providing significant support, but making sure that support was targeted and did not bring structural burdens into the bottom line. That is an important feature of making sure we are in the best possible position to deal with any future economic blows that might come our way. Haslinda the australian finance minister there. Yvonne thats it from us here in asia. Heading over to manu in dubai withs daybreak middle east. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Announcer the following is a paid program. The opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. Announcer the following is a paid presentation brought to you by rare collectibles tv. [gunfire] announcer after four devastating years of intense and deadly battling, the allied powers of United States, france and england prevailed over the central powers of germany, austria, hungary and the ottoman empire