These tech heavy benchmarks doing better than what we saw on friday. We are watching hong kong closely after we saw them arrests made after protests returned to the city. Looks like they are shrugging that off. Pretty steady for the euro. That ecb meeting on thursday. A lot of questions about how to tackle this euro strength. This has been pretty volatile of late. We get another round of brexit negotiations. Your off to your offshore revenue will be continuing. They onshore rate has had the highest stretch. Bond markets have been falling. Pickuptreasury yields after the u. S. Job report. These are back to the prepandemic levels now. Hedge inll a good these markets. Brent crude still following what we saw with oil markets. Around 42. Lets get more analysis now. With eight Market Strategist. What is your assessment of what the key drivers are behind markets in this part of the world . Good morning. Thank you for having me today. I think we are seeing an interesting trend. We have the situation where went until last weekend expecting what we had heard. This is kind of a selloff. You to find a situation where in the market once again. You want to mention the start of this week. They are slightly holding on. We have the equity markets with concentrated gains and the tech going a little bit too fast and. Erie will see this across other asset classes. That is why we are seeing asian markets doing this. Updatea chinese data over here. And overtly bullish trend in the market. Suggest that you aggest expect to see continuation . It is a little bit of this Inflection Point for the market. We have seen them slowly grappling with this. They are compelling us to continue. We have seen this data in the u. S. And in asia. In the north asian economies. There are some concerns about the possibility of this kind of momentum. There are concerns for what the market will look like. In the next stage of recovery. There is still a lot of uncertainty. There could be a shift in the market continuing. How do you compare that to a vix that has stayed elevated for some time. How long can we stay above 24 the vix . Is this a sign for a deeper correction ahead . [indiscernible] equity markets have come across a bit of a surprise. The option market behaviors have continued. Think that is finished. With that being the case, we will not be surprised by what continues to come in the shortterm. That is the next stage of recovery. A bit more of this tapering off. You mentioned about the options market. This is what we have been tracking with softbank. They have been fueling this tech rally. This is a controversial move. How do you see this changing the investment landscape . Does the market more prone to these big pullbacks . Not necessarily. I think it is observations with what they are doing. This is kind of a market view to what the tech stocks are continuing to do. His is a trend what softbank has been doing. We do find this situation. Shortterm this is the volatility we would see. That is the reality and the market. Thisll be grappling with for the next six months. Market reaction if we do not get additional fiscal support out of the u. S. . That is high on the list. We will be looking at more of these discussions. I think the Market Reaction so has looked at that fiscal stimulus coming through. We will be looking at business as well. This will be a surprise. We will be suggesting that these markets require continued monetary support. Situationof market will be a downturn for the u. S. Economy. A shock to the market. It will reinforce the difference andeen the covid19 winners officials. Theill be coming back to point. Yvonne we are expecting something before november 3. Thank you. You dont want to miss her at our Virtual Event that is happening this week. That is this wednesday. Other lenders will be subject to this imposed by a super came Supreme Court ruling. That will take away the biggest revenue driver. 881,000 deaths. The u. S. Reported 45,000 new cases and 24 hours. That was in line with the previous weeks average. Rose by 3000. That was a 64 jump since the previous day. And the biggest increase in late may. Coronavirus cases in italy have now topped 4 million. The country is set to overtake brazil as the second most affected nation behind the u. S. India reported 90,000 new cases on sunday. More than 70,000 indians have died. The testing rates remain low compared with other countries. Australias business lobby is warning of further economic damage after a strict walk lockdown in melbourne was extended for two weeks. It has 90 of australias debt. Germanys top diplomat has warned russia that berlins support for the nord stream 2 gas line is at risk. If the country does not offer answers over the alleged poisoning of a dissident area. They said he was attacked with a nerve agent. Almost half of the companies are german. Still ahead, we will talk more about currencies. What chinas domestic focus means for strength. The trade data we are waiting for from china. Show, protesthe begin to flareup in hong kong. We will get the latest details. This is bloomberg. Tom welcome back. Google says it does not object to the recent australian law on news businesses. Australian policy that would require Media Companies to charge or pay media funds. Facebook pushing back. Who will saying it does not object to the australian code. We will bring you more as we get it on that story. Moving on to hong kong. Police have made hundreds of arrests as prodemocracy protests returned to the streets. What really happened here and why now . The protests have been fairly wide since july 1. The implementation of the National Security law. It had a chilling effect. But also we had the coronavirus. That has gotten people of this truth. Yesterday was the date the Legislative Council was supposed to happen. This was a direct protest against carrie lams postponement for one year of that registered of counsel. Needless to say, police were out in will force. To 70 people as of the last count. Thereition, there were no 19 people. Not under the National Security law. Charged withre obstruction of justice and some of the violence against the police officers. Looking at the screens here in beijing. In hong kong theres a push to boycott mulan. What is going on there . This is something disney saw coming. Their lead actress in this a mainland is chinese native, an american citizen. She retreated a social media post that supported hong kong and set the protest movement was a shame. She has backtracked from those comments in an interview with the hollywood reporter. She said it is a very complicated issue. And that she is not an expert. But a little bit of the damage was done on this film. It did not hit theaters yet. It was moved to the disney plus streaming app because of the coronavirus worldwide. But now we have activists all across asia, including island, who have put out calls to boycott the movie. Wongan see what joshua said. He said disney cow towels to beijing kowtows to beijing and endorses Police Brutality in hong kong. They have said to boycott the phone. Disney has not commented. Saybloomberg analysts because they moved it to the streaming platform, they need to have billions of downloads to make this film even breakeven. Coming up, the frontrunner to become japans next Prime Minister is widely seen as a continuity candidate. But some of his past statements suggest he could shake things up. Details coming next. This is bloomberg. Tom welcome back. The frontrunner in the race to become japans next Prime Minister is widely seen as a continuity candidate rate but his past statements say he is a reform advocate who could change up some of the country cozier industries. For more, we have our politics reporter joining us from tokyo. What are some of the areas we may see a divergence . There issues he has mentioned over the years. Even though he has seen like the right man to shinzo abe. One is the mobile phone industry. Incensedstantly being thate high charges japanese individuals have to pay. He said he will enforce competition on that front. Thing is regional banks. He will be pushing for some consolidation in the smallscale banking the street. Yvonne he was seen as the candidate who was the. Ontinuation what policies will you keep in place . In several speeches he has , he said he is content to continue with the extreme monetary easing. Change on thatno front. He has said if something is afloat,o Keep Companies he is very prepared to do it. There could be more in terms of monetary easing. Could be Government Spending to support individuals. Our politics reporter joining us tokyo. Its get the latest business flash headlines. The company may trading gains around 4 billion. There were bets on equity derivatives. There were some unrealized profits. Ever grand will its properties the prices slash for its properties for sale in china. They are aiming to boost sales. Chinese chipmaker smic has heard that the u. S. Might blacklisted as a security risk. The company denied having any relationship with the chinese military. They say it is only for commercial use. Seek a license to ship to smic. They have raised a number of shares they plan to allocate. Due to Strong Demand. Debuting on the Hong Kong Exchange this week. Biggest ipos this year have been on Mainland China or hong kong. Check in on some of those stocks that you just talked about. We look at how the stock prices are reacting. We had the report from reuters suggesting that the company could be blacklisted. They are down more than 80 at this point. Down more than 6 . Reporting thatof they have had positions in the tech sector in the u. S. Just a look at smic. They did have ethics exposure. 27 in north america. We are looking at alibaba. It will have some of its Interest Rates cap at 15 . Some of the real estate here in the mainland. We can look at the japanese markets. About thest been talk reform agenda. Softbank is dragging down the nikkei. Currently down 4 10 of a percent. This is what the dollaryen is looking like. Practically unchanged. Plenty more ahead. This is bloomberg. The big events are back. Xfinity is your home for the return of live sports. It is 10 29 a. M. In hong kong and try and shanghai. Here are the first word headlines. Protests have returned to the streets of hong kong after weeks of relative calm. Police arrested almost 300 people including key activists as demonstrators marched through neighborhoods. The main thrusts of the protest was against the delayed Legislative Council in elections, which were supposed to be held on sunday. The government in britain, a law. A person familiar with the internal markets bill says it has fullback measures related to ireland rate if the u. K. And eu cannot agree. It has the potential to undermine ongoing trade talks. We have got to a position where there are only two points really old and us back. Week really holding us back. We cant accept the eu controlling our loss. No one goes into negotiation on that basis. A powerful storm has slammed into southern japan, bringing fierce wind and rain, with flooding and some mudslides. To 160ght winds of up miles per hour. It forced toyota and others to shut factories. The storm is now headed for korea where the president s office is warning it could cause great damage. The worlds top seeded tennis player exited the u. S. Open after he accidentally hit a line judge with a ball. Forfeited the match, ending his attempt for a title for violation of what they called reckless actions on court. I watched that one. That was a bit tough to watch. A quick check of the markets. Where keeping a close eye on the renminbi. Asiapacific stocks, it seems like we have stabilized a little on after the text selloff friday. The nasdaq futures are still seeing quite a bit of red for a Third Straight day. We are watching how india plays out. Futures. Ower for nfte virus cases in india is set to over to kate set to overtake brazil and become number two in the world when it comes to virus cases. Individual stocks, tom has been focusing a lot on the tech sector. Samsung electronics, that kind of its bucking the trend, of about 1. 2 in seoul. It as the next target in its blacklist, samsung could benefit. That is why that stock is higher. The hang seng index falling once again. 515names like tencent, right now for the stock. Alibaba is down 1 . To 20 tending gains lower. When it comes to currencies, the dollar will still be the focus after we saw a resurgence in strength last week. 1. 18. Ollar at onshore renminbi continuing to go strength for strength. 6. 83 for your onshore rate. A sixweek of gain, the longest streak in two years for your onshore renminbi. That is helping currencies trade pretty much flat at 106. 26 for the dollaryen. We are waiting on the trade data. Questions about how strong the rally will be. We are expected exports likely continue to rebound strongly from a year earlier, reflecting higher external demand. Some believe beijing is allowing faster gains as well as it seeks to bolster week spending. Lets bring in the Market Strategist at arcadia securities. I am just wondering, is it the same recovery in china . Alls this alstom is this still dependent on where the dollar goes . I think a lot of this is dependent on where the dollar goes. Chinese states have been encouraging in weeks and months. It has outperformed elsewhere. I think the rally has been largely dollar dominated. Against a Broad Spectrum of currencies. The fact that the fed will moving toward targeting and inflation pressure remaining very benign. Confidence in the dollar has really come under a lot of pressure. I think the rmb has capitalized. Going forward, i think that will continue to be the big driver for dollar rmb. How do you look at the theme of dual circulation, where xi might want to boost imports and be more reliant on some of the technologies. Do you think there are currencies that can benefit if china becomes more selfreliant . Is a complex issue. Clearly the fact that u. S. Has sanctions on Chinese Technology companies and import of u. S. Technology goods has had some impact on what china has been doing. They are obviously investing a lot more money domestically on building up tech infrastructure. I think it really does depend on how china moves ahead. It involves much more demand from other countries to help build up Chinese Technology production and exports. That could benefit the rest of the reason. China seems to want to try and move towards boosting its ability tocompanies produce technologies, which could come at the expense of some producers in taiwan and korea. It wont necessarily be great for the rest of asia as taiwan builds up its technology infrastructure. The domestic story and priority for the regulators and policymakers is to continue to open up the Financial Sector. We heard from the regulator over the weekend percent they want to see changes. Do you think there is a real catalyst . They talked about how Foreign Investors own just in the lender 5 of stocks at present. Do you expect to see enough to propel momentum . Clearly think there is a Strong Demand for chinese assets. Up more andning more, especially in terms of the Financial Sector. As you mentioned, the Foreign Ownership is still fairly low proportion. There is a lot more room to do that. Equities has gone a long way on this front. On the other side of the coin, china, while it is opening up its market to some extent, it still has reflect still has restrictions on capital flows out of china. I think given the capitalization of chinese equity and bond markets, they will be more inflows into these markets. Especially as more and more Companies List in china. The sanctions the u. S. Is putting on listings in the u. S. May entice more companies to list in china and hong kong. I think the path is clearly there for more info for Foreign Investors. Part of that is linked to politics and the election in november. Do you have an idea of how the election will affect the fx space . Mitul overall, we would argue that there will be uncertainty over elections. Their arguments over whether the u. S. Election will be recognized by the president or even democrats. There is a lot of uncertainty likely to build up. Polls still show some lead for the democrats and biden. If this uncertainty persists, it could weigh more negatively on the dollar. It could be a short rally. I expect the dollar will come under renewed pressure in the next several once. Currencies like the rmb will do reasonably well out of that if the dollar continues to remain under pressure. Some of the emergingmarket currencies which are doing well. I think that would continue in the next few months. Dollar weakness has not most of the fx that is struggling right now, what do you think is driving that we and could spark a turnaround . Centrale not banks have been intervening to prevent currencies from strengthening. We know that emerging markets are under a huge degree of pressure. They dont have the capacity as some of the developed economies. The fact is that the currency many, especially in asia, where the region is very export oriented. Keeping currencies to some extent suppressed against a weaker dollar is a means of trying to boost competitiveness and exports. I think that is the reason we have not seen emergingmarket currencies benefit. The fact that growth pressures are not going to be dealt with quickly. Covid infections rising in some countries such as india meant there has been less inflows back into emerging markets in recent months. I think that cautiousness is going to continue. Inore we see any rally emergingmarket assets. The ecb meeting later this week. Is there anything that can do to tame the euro strength . Mitul aside from jawboning, it is hard to see what the ecb will do. We have seen a number of the policy levers already having been called. We may see lagarde, ecb president , highlight some of the flexibility of the ppp, perhaps suggesting that the pickup in the downbeat inflation outlook. As for the euro, it is highly unlikely they will be saying or doing muc