Covid vaccine trial has been put on hold after a patient suffered a serious reaction. Australian corporate earnings set for a tough recovery after their worst slump. Will be asking about the challenges ahead including tensions with china. Shery lets get a quick check of how markets are trading. We are seeing u. S. Futures again under pressure. Down 7 10 of 1 . This as we continue to hear more reservations coming from these vaccine makers. We heard from astrazeneca after the close. We already had some skepticism over what happened to those vaccine approvals. We also had the text selloff accelerating. We saw the s p 500 sinking to a four week low. Not to mention ongoing u. S. China tensions. Every sector on the s p 500, 11 of them were down, led by tack and energy. We had the nasdaq composite losing more than 4 during the regular session. Take a look at some of the biggest decliners. We have tesla sinking almost 20 . This after shares were not added to the s p 500. A had news that rival gm took 2 billion equity stake in nikola. 6 ,e losing more than wiping out more than 120 billion in market value on tuesday. These tech champions of the u. S. Equity valley equity rally under pressure. Wti continuing to fall toward that 36 a barrel level. We have already seen the biggest fall in about five months. Now trading at the lowest in 14 weeks. Lets see how things are shaping up with asian markets. Sophie stocks in asia are said to decline. Panic may be unlikely as markets assess the developments on the u. S. China risk. Moreas markets turn conscious. Futures in sydney off by more than 1 . In korea, where keeping an eye on samsung. A local media reporting they will hold shipping supplies to huawei. Some profit taking may be on the cards. Footing the board, on tuesday, tech was a drag in hong kong and china with shao me losing 7 . Star board extending a five day decline and made a rotation into cyclical and value placed in out of the years top performers. Financials were a boost for the hang seng and the csi 300. Cheap chinese banking stocks have been a value trap for years. E strategist are saying some strategist staying upbeat. The csi 300 trading at a similar discount that we saw in early 2015. Market breadth staying elevated. Increasing exposure on Growth Prospects on the mainland with stakes in icbc and alibaba. Ecommerce opportunities in china will continue to be attractive with more players planning share sales in hong kong. Shery staying positive on the digital and ecommerce space amid the latest pullback. Lets bring in the president of pence wealth management. Take a look at the gtv chart. We are seeing the nasdaq 100 really around the 50 Day Moving Average levels. If it falls below, what could it mean as we continue to see the tech selloff accelerating . Are we taking the froth out of the markets are this a more serious selloff or is this a more serious selloff . I think we are taking the froth out of the market. The market went up so fast. This is a welcome correction that we think is going to be shortlived. Shery does that mean that investors should be taking this chance to go into these stocks, especially those companies that have strong Balance Sheets and may act as a safe haven given the uncertainty out there . Absolutely. Tohink investors need average in. This could be we do not know if this is the bottom. There could be more volatility. If you do not have exposure, this is a good time if you want to have a 5 allocation going with a 1 , a 2 , these valuations, the market and especially the nasdaq is the only place in town. We have very low Interest Rates everywhere else. We have been looking for this for a while. Much of the that so u. S. Exceptionalism story has ,een driven by the heavyweight you should beink looking outside the u. S. Because valuations are so much lower than us. We do think a good justification there. You cannot abandon the u. S. The u. S. Is where the growth is. It would be prudent to look for some lower pe evaluations outside the u. S. For now. Haidi in particular, china. Where do you see the opportunities and is it worth going into that market given the enormous amount of uncertainty we are going to get possibly beyond even november . Isla we think that china undervalued compared to the u. S. We think that covid did not hit them as hard as us. Ecommercey have 25 where the u. S. Only has 16 . Is itnk that china is probably the only area that is going to have a positive gdp by the end of the year because it did not go down as much. We do think it is a good place even though there is a lot of uncertainty with the political arena. We do still think this is a good place to add some funds. Shery are there any sectors you should avoid . We consider we continue to see the tech tensions. At the same time, we are getting more news we could even see the cotton and textile industry under pressure as well. Laila you have to be selective of what area to go into. We still Like Technology and internet in china. It is still dominant. It is similar to the u. S. The way that covid is, it could last a little longer. You need to be in areas you can count. Haidi really appreciate your time with us. Us. A pence joining lets get a check of the first word headlines. Study of the Coronavirus Vaccine has been put on trial put on hold. The trial was paused after a suspected adverse reaction in per dissipate in the u. K. The astrazeneca vaccine is being developed with Oxford University and is seen as a frontrunner for any potential treatment for covid 19. Mitch mcconnell is hoping for a vote on the latest u. S. Stimulus package as early as this week. The republican proposal is expected to cost between 500 and 700 billion. The democrats are looking for at least three times that. Nancy pelosi told bloomberg the cylinder down packages nowhere near enough. What they have is so meager that it insults the intelligence of the american people. It does not solve the problem. Again, we know that we have to compromise. We know we have to negotiate in order to region agreement. We all want an agreement. Make no mistake about that. Get real, mitch mcconnell. Karina in other news, up to half a Million People in california have been affected by power cuts as heat waves and power cuts affect the state. Portland General Electric have to some off power customers in oregon. China has made its first, its about an australian journalist held in china saying the journalist is suspected of carrying out criminal activities. The journalist worked as an anchor. Month. Detained last the allegations are among the most serious ever brought against a foreign journalist in china. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im karina mitchell. This is bloomberg. We are going to get more on the tensions between australia and china later on in the show. Us. Fferies analyst joins plus, we will be speaking with one of the worlds top experts in Global Health governors about the price the world pays when foreign interest drives the vaccine. This is bloomberg. Haidi the Trump Administration has banned imports from three companies in china over beijings alleged repression of uighur muslims. Tom mackenzie joins us from beijing with the details. Wireless in this action out of the u. S. . It follows the drumbeat of pressures on china. Tom that is right. These are measures put in place by the u. S. Customs and border protection, which is using a law and a set of measures that target forced labor in supply chains to focus on these three companies. One company is involved in the reduction of garments. The other two are building and producing hair products. Three companies in total, but there will be an additional six that will be added to the list by the end of the year. Again, according to officials in the United States. The reason is they are concerned about allegations of forced labor in the region. And also, more broadly, the u. S. And others have claims china has rounded up at least a million muslims and detained them in detention camps. China calls them reeducation camps. It is tied. To the human rights abuses the u. S. , the United Nations and others have been talking about for some time. Theerms of context within sector, the cotton producing world, the region produces 80 of chinas cotton. The United States imports 30 of its garments from china. There is a view any the trumpet administration that you get that and endinguced there up in the supply chain and garments the end up in the night states. The United States. Say, it does ratchet up the tension and potentially some broad implications for the textile industry globally. Shery we are continuing to see the pressure in the u. S. On bytedance and we chat. There is a new study that found that tiktok and we chat do sensor content beyond china content beyond china. Tiktok,n it comes to they found according to the study, which they described as being sophisticated, often suppressed certain hashtags and words and language around for example, political movements, gender, Sexual Orientation and religion in certain countries. They also point to an example of criticism of russian president Vladimir Putin being censored in russia. When it comes to we chat, this study found the app sensors content, particularly they said content around prodemocracy activists. Done re studies around that National Security law in hong kong being censored on we chat. Other reports by the yard times has found we chat is used by chinese officials to hound dissidents overseas. All of this will add fuel to the fire within the trumpet administration in terms of their push the Trump Administration. Tiktok and bytedance are in negotiations with Companies Like microsoft and oracle to see if they can spin off the app. It is likely tad ammunition to the trump likely to add ammunition to the Trump Administration. Coanchor, tomkets mackenzie, in beijing. Lets turn to singapore. Assets surpassing the home market of singapore for the first time ever. Chinese holdings rose to 29 of assets compared with 24 for singapore. Our chief International Correspondent for Southeast Asia spoke to the cio. China has the largest part of our portfolio. Teams are very domestic market oriented and we think will continue to be a strong theme for us. The point you made about the alibaba swap, that is a nonissue. It is basically, we had most of our shares for the hong kong listing and have divided them between hong kong and the u. S. Influence anything you are talking about. [indiscernible] consumption,l around fintech are all teams we like and we can be positive about them. How do you assess the risk in hong kong with the National Security law and greater security of hong kong greater scrutiny of hong kong by beijing . Hong kong is going through its own challenges. The investments are not hong kong centric. Our investments are focused on china. The significant market that china is. The growth and consumption, the growth in the economy. You are seeing it is the only [indiscernible] particularly in the areas we are focused on in china. One of the themes that came through is that Southeast Asia could be muted. What will that mean for temasek . Will that mean fewer Investment Opportunities . As you know, we are investing globally across all markets. Southeast asia is an area we think is an attractive estimation partly because of the rapid increase in digitization as far as the economy, the use of the internet across various business as. It is not a traditional ecommerce and gaming. We are seeing opportunities in Digital Health and financial services. An area we are looking at very closely. [indiscernible] you are encouraged by opportunities in the region. Outside of singapore, indonesia, vietnam, two very active economies. We published this report with google on the Southeast Asia economy. We highlight these two as having the largest potential markets in the internet economy. Those are the two markets accordingly were received a maximum opportunities. There could be other areas like india, thailand etc. sidi that was temaseks chief investment strategist. Concerned beijing is is being held for National Security. This is bloomberg. Haidi who have some breaking numbers when it comes to case numbers for the coronavirus coming out of pretoria state, the australian epicenter of victoire you stay, the australian epicenter. Deaths in11 covid19 24 hours. We see the bulk of those deaths in the past few weeks being linked to aged care facilities. Theas been maintained under 100 level. We know that currently, the roadmap to a full listing of the lockdown situation in victoria requires less than five daily cases and a low level of Community Transmission over 14 days. Lets get to our top story. China has released details of everyday over the detention of a Chinese Television anchor. She has been held over the suspicion of endangering chinese National Security. This seems symptomatic of worsening relationship between china and australia. That on the face of it is quite vague. It is. What we know is a very small amount. That is something at least because she was detained in august the 14th. The news of the detention only broke last week. Chinas Foreign Ministry did speak to the media yesterday and said she is expected is suspected to have carried out activities endangering chinas National Security. This is one of the most serious allegations ever brought to a foreign journalist in china. Newscaster for the state tv. The allegation gives them power to hold her from months without charge and prevent her from having access to a lawyer. The Foreign Ministry says the case is being followed according to the law and china does welcome foreign journalist and the country is still committed to opening up. Shery we have seen this week, the last two journalists working for australian Media Outlets leaving the country being wanted for questioning for chinese authorities. What is the story . , one ino journalists beijing and mike smith was in shanghai. Each got a knock on the door at 12 30 in the morning last week with uniformed officers standing outside telling them they were wanted for questioning and they were forbidden leaving the country. And attributed take place an interview did take place while under consulate protection. Mike smith said the interview was benign and polite. After five days of negotiations, both were allowed to leave china and the arrived in australia yesterday. It is the first time in nearly 50 years australian Media Outlets have had no accredited journalist working in china. This is all happening against the backdrop of declining relations, which dates back to the banning of huawei from buildout. S 5g more recently, calls for an inquiry into the origins of the coronavirus. Be backth, was glad to home after day and because this incident political. Shery paul allen in sydney. Lets get a quick check of the latest business flash headlines. Tesla shares have their worst day since the company was listed 10 years ago. The plunge followed the decision by the s p 500 not to include tesla on the index and the completion of the companys 5 billion share sale. 500 . Mpany is still up teslas fortune was not helped by dm taking a 2 billion stake in its arrival, nicola. Rival, nicola. Gm will start production on the First Electric truck by the end of 2022. Apple is set to hold an online event next tuesday, telling customers only that time flies. While that may indicate it is about a new apple watch, some analysts think the new iphone could be made public. The company had said earlier the new handset will not be released until october because of supply chain issues with the pandemic. Here is a quick check of how markets are looking across asia. We are seeing u. S. Futures under pressure, down 7 10 of 1 . Does as we saw the u. S. Stock continuing after the long weekend with the s p 500 sinking to a four week long we low. Do watch out for the nasdaq 100 tomorrow because it is getting to the 50 Day Moving Average. We also saw the volatility on the nasdaq 100. Willa sign the tech abate. Up next, the bank of thailand governor is pointing to a bigger role for the government in stimulating the economy going forward. Are exclusive interview just ahead. This is bloomberg. Our exclusive interview just ahead shared this is bloomberg. Thailand public debt restriction should be eased to allow the government to spend more. That is according to the bank of thailand governor who has been looking at options to prop up the economy at a time when Interest Rates are at an alltime low. The policy rate is quite low, historic low. If you look at the liquidity from the macro perspective, we believe that is ample liquidity. The challenge now as i have mentioned is moving away from liquidity problems to insolvency problems and the combination of policy. Military policies, financial policies, financial institutional policies. It is fair to say that for doneear, the bot is for rate cutting . Know, we keep our policies on the table. By lowering the policy rate alone, with the transmission mechanisms not working in normal times because the credit costs have come up substantially, it will not pass through doors that are in need of financial assistance. By looking at some forms of the last two policies [indiscernible] we provide funding at a very low rate to the bank so the bank can lend to the snb. Se policies have the rate can be more appropriate. Gains 4. 5 he versus the usd today among the worst performers in asia. Does that reflect fundamentals now . Betterink it is moving in line with the development of the economy. [indiscernible] are you expecting dollar weakness to persist . Be that way, but even the slr can be highly volatile as well. [indiscernible] the slr can be moved by a particular incident or news that might change the minds of global investors. The deepest [indiscernible] tourismhe rebound is a specter at risk of a meltdown. The is the Downside Risk to projection of the bot . Outou have rightly pointed that the Tourism Sector is a key jigsaw in our protection. We do reveal our forecast on a quarterly basis. A new forecast will, at the end of this month. We have a Monetary Policy committee meeting. That assumption under the Tourism Sector has played an Important Role in our gdp forecast. There is an increasing call for the government to do more. The public debt to gdp ratio is close to the 60 limit, which means the government will find it hard to spend more at a time when it needs to spend more. How do you see the government managing the dilemma . That the 60 l view public debt to gdp limit can be relaxed. This was the limit set out during the normal term. If you look at 60 of public debt to gdp, it is not high by international standards. It is not high as compared to other emerging markets in the region. Identifyenge is to fiscal stimulus measures. Focus onvernment can segments, [indiscernible] those creating employment for segments of people that have been badly affected by the current crisis. That is more important than the debt ceiling limit. The bank ofwas thailand governor speaking with haslinda. Lets get the first word news with karina mitchell. Karina a new bill will be published in the u. K. That rewrites part of an earlier agreement already signed with the e. U. In relation to britains divorce from europe. Critics have called the agreement unlawful. The changes would allow britain a no deal departure. Today. Alks resumed india and china have accused each other of firing warning shots on the disputed himalayan border. If true, they would be the first shots fired in four decades display officials on both sides agreeing to diffuse tensions. China has accused indian troops illegally crossing the line of control. India says that is not true and denies firing shots. The u. S. Has banned imports from three chinese firms over the alleged abuse of minority chinese a minority abuse of uighur muslims. The region produces more than 80 of chinas cotton and the u. S. Imports about 30 of its clothing from china. Firsthas made its comments about an australian journalist being held. An journalist worked as anchor for the statesponsored global news channel. She was detained last month. The allegations are among the most serious ever brought against a foreign journalist and i china. Foreign journalist in china. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Staying on these tensions between australia and china. Are next guest estimates our next guest estimates the relationship could make up the more than half of the asx 300. Great to have a view great to have you. We have seen this 30 year streak without a recession in australia thanks to the chinese growth story and then the volatility of chinese stimulus. Is there a chance this relationship we are seeing unraveled will mean this time around, the recession will not be helped by this relationship . That is correct. If you go back to the financial crisis, the effect was muted because we did not have the access in the household market. Because Interest Rates fell, that triggered a tremendous over and above as china stimulated, that created demand for iron ore. You cannot have picked a better place to be. When we have a look at australia, we are overexposed both in terms of exports. The other subject point is one of the things that has helped the australian economy has been basically immigration field population growth. A lot of which is from china. If you were to strip out that, we could have been in gdp recession for quite a time. The relationship is really significant. Haidi i want to throw up this chart taking a look at the gains we have seen in the asx in dollar terms. Eart of this has been the mor than 20 taking a look at this chart on gtv. Does this kind of chart belie the risk you talk about given the waiting we have seen the weighting we have seen in consumer goods and tourism . That is correct. I think it is important to know that when we have a look at the asx when we have a look at australia in u. S. Dollar terms, despite the fact that the Australian Dollar has appreciated quite sharply, which is largely being driven by chinese demand for iron ore, the reality is australia has dramatically performed in the asc i world. When we have a look at australias linkages to china, they are so big that this could be a massive issue. It is for the moment that everyone is focused on covid19 and seems to be ignoring what could be the [indiscernible] shery we are seeing this pressure on australian barley, what could be the company that could get hit the most . Brian this might be consistent with recommendations we actually have, but when we have a look at the australian banks, 60 of the loan portfolios are in housing. When you have a look at sydney and melbourne, it is over the top expensive. That is largely driven by chinese immigration. This is quite a significant negative. The Housing Market is negative for the banks. Sale. 40 of the 60 of the revenue. The thing about it is if you disrupt the business into china, it has a residual impact on demand. Look go and have a china accounts for 20 of the sale of development properties. Like 35 of the valuation. Ofis across a realm australian industry. [indiscernible] either any sectors in the Australian Market that would are there any sectors in the Australian Market that would not be impacted by the tensions . Brian there are. Basically,ge, australia needs to sell iron ore to someone and that someone is china and china needs to buy australian iron ore. That is a very pragmatic position. In iron oreesting minds in africa. Mines in africa. [indiscernible] when we have a look at [indiscernible] the stocks are endless or less negatively impacted. Haidi how much conviction is in your town when it comes to the australian miners . At the moment, you struggle to see who would be able to take the place in terms of suppliers . Do you anticipate iron ore will continue to be immune from the diplomatic tensions . Brian i think it certainly will be in the timeframe most investors are thinking about. It is probably a strategic problem for china that is overreliance on australian iron ore at a time when brazil is disrupted by covid19, which means australia is the place you buy it from. It is no coincidence that in trying to diversify the supply, we can see an interest in building up some of these mines in africa. You will not see this anytime soon, but is something that we should be thinking about. Shery really helpful to have your thoughts. Research equities analyst. We will be speaking with one of the worlds top experts in Global Health governance from the centers of Global Health studies. He tells us what happens when policy interest drives the vaccine right. This is bloomberg. The global race for a Coronavirus Vaccine has suffered a setback with astrazeneca confirming its phase three trial is on pause after an unknown adverse reaction in subject. With the u. S. And china competing, Health Experts are warning of the consequences of a fasttrack approach. We are joined by a professor at Seton Hall University and to director of the Schools Center for Global Health studies. This news perhaps timely given your concerns that if national pride, strategic race to get a shortcutsy result in when it comes to both safety and efficacy in getting there. Yes. Haidi is this the kind of thing would have expected to happen given how quickly pharmaceutical giant have moved to try to be the first to get something to market . Surprises not the given the fair rate of Vaccine Development is always very high vaccines. Have six this is the first one that seems to have been declared a failure. We have five left. The race has only been intensified. Between the United States and china. The csl innow australia had been doing a deal with astrazeneca on the vaccine. What are the concerns when it comes to the diplomacy side of things . We know china has exercised its away of diplomacy in other ways in lending to developing nations. Are we setting up for a situation where we have the u. S. And china and potentially russia dealing with smaller countries in how they will distribute vaccines . Yeah, this is the problem of the current race to develop an effective vaccine. Countries,n especially the United States, china and russia cutting deals with countries to prioritize them for vaccine use even though the Clinical Trials of phase 3 is not over. Shery just hold on a second because we do have breaking news. Young china pricing there hong kong pricing share at 412 hong kong dollars each. They are raising a net 17 billion in hong kong listing before an offering. 17 billion. Sing we continue to see more Chinese Companies listing in hong kong. Now we are seeing yum china pricing there listing shares at 412 hong kong dollars each. The listing retail offer was 52. 3 times oversubscribed. We will get you more details as we get them. Lets continue discussing the coronavirus pandemic. Thank you for holding on. Access to about the these vaccines once they are made. Seeinghe rate we are getting there and the tensions, how much of an issue will equitable access to the vaccine be . One of the problems is china een [indiscernible] narrative of the Chinese Government that they are first toone of the contain the spread of the virus but also the first to develop an effective vaccine. Oft is seen as a sign national competitiveness. Chinas hi take industry and also hi take industry and also a sense of national pride. In the United States, we have seen the Trump Administration announced they will have a vaccine available by the end of october. We are close to the election day. Meantime, [indiscernible] the initiative to ensure equitable distribution of the vaccine worldwide. Eventually, we are going to see because of the vaccine nationalism and because of this growing skepticism in the United States toward the vaccine when it becomes available, we are going to see on the one hand, vaccine apart hide in the a vaccine apartheid. There is a majority, two thirds of them are reluctant to use that vaccine. In the meantime, you have people in poor countries that do not have access to the vaccine. Shery to your point, just around may, i am starting to hear people saying they are not confident on any vaccine that comes out of this race, that they are not going to get that shot. How would that affect herd immunity . That is exactly the problem because usually Vaccine Development would take five years. Even for covid, at least 18 months. Onlye have reduced that to 5, 6 months. Of october, china and the United States say they will have a vaccine available. Will jeopardize to many people the safety and efficacy of the vaccine. Skepticism is going immunityine the herd unless you have a vaccine that is 100 . That even with two thirds of the majority say they are going to take the vaccine. What is still probably not it was still not be sufficient to create what we call herd me today. Shery great having her thoughts. Thank you great having your thoughts. Thank you so much for your time. Have that breaking news. Yum china saying there hong kong listing retail offer was 52. 3 times oversubscribed. They are raising a net 17 billion hong kong dollars. We will be speaking to yum china ceo joy watts on thursday. You do not want to miss that. This is bloomberg. Haidi a quick check of the latest business flash headlines. Gains in Companies Including alibaba. Report showsest exposure to china the lowest since it was founded. The company which makes the game has removed franchising in india. The south korean parent will take care of all publishing responsibilities in india after new delhi banned 200 chinese apps from operating in the country. Tencent offered no,. No comment. At epics fired back games. The iphone maker removed fortnite from the app store, alleging the Gaming Company breached its contract by launching its own payment system. Epic filed a similar suit against google. Shery coming up, we will speak with the Northern Trust cio bob brown about what will drive markets in the next five years. Will be also speaking said the ceo of a luxury watch brand. Telling us about unexpected cells bump. Will have plenty unexcited sales bump. Well have plenty more ahead on daybreak asia. This is bloomberg. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. Shery welcome to daybreak asia. I am shery ahn in new york. Haidi i am haidi stroudwatts in sydney. Our top stories this hour, asian stocks look set to resume declines after heavy losses on wall street. The selloff gathering momentum with tesla suffering its worst ever rout. Astrazeneca putting its vaccine trial on hold. The drugmaker