There we have active futures on the s p up by. 5 . Nasdaq as well. Just seeing what is likely to happen with the start of the indian session and about one hour and 44 minutes. Nifty gaining about. 2 wednesday, looking like we are adding to it. Have some news as well. There were fears among bond traders bond that could have played havoc on the bond markets. That is the yen. We have the pound which has been emerging as a strong currency against its u. S. Counterpart as we get brexit negotiations taking place and certainly it is the way the u. K. And European Union come to an agreement as to what happens after the u. K. Officially leaves the European Union. Seeing some progress with regards to all that. Haslinda lets get the first word headlines for you. President trump signed an executive order to expand u. S. Production of Rare Earth Materials. Amid concerns that Global Leader china they restrict exports. They are used in a vast range of goods. China accounted for 80 of americas imports last year. The eu is also stepping up its drive to be reliant on rare earth shipments. The u. K. Is preparing to ban chinese postgrad students from subs studying certain subjects over national security. Blockre expect to hundreds of thousands hundreds of Chinese Students from entering the u. K. They may be revoked if considered a risk. Retail slump continues in hong kong, although it eased slightly last month. Fell more than 13 from a year over to the equivalent of 3. 3 billion u. S. That is better than the median forecast of a 17. 5 fall. Sales by volume also dropped 13 on the year, but that is an improvement on the near 24 decline in july. Goldman sachs is resuming job cuts and cleanser limit around 400 employees. And plans to eliminate about 400 employees. Bowman announced at the start of the pandemic they would suspend job reductions after signaling in january it was looking to cut 1 billion in costs. The crew of the international ce station is finally the problem is in the russianbuilt section of the lab, but nasa insists the leak is small and poses no threat. Hes. Astronauts sealed hatc but the erroneous reading was put down to a change in cabin temperature. Airlines could not wait for another day of washingtons failure to pass another stimulus bill. They are starting to lay off thousands of workers, adding to job cuts being announced across industries ranging from an Industry Energy to finance. Kathleen hays has the latest chapter in the fiscal stalemates i. These airlines were not exactly bluffing when they said it was make or break time. The question is why is it today . Kathleen the clock is ticking. The Airline Industry, the necessary cuts that have been talked about from ons, and everything coming to a head this week. So it started with American Airlines ceo putting out a memo to his employees. They are going to start laying off 19,000 workers as of thursday. He says we are not done fighting, and on sunday news shows over the weekend he made the same kind of statement, saying he is optimistic government finally passed something to make this not necessary. And he said that they can reverse these layoffs if aid is extended in the next few days. United deepening the Airline Industry cuts, 13,000 layoffs. United saying their job cuts will begin immediately. It seems like it is no coincidence that treasury secretary mnuchin and nancy pelosi had a 90 minute meeting this afternoon. Innition, in fact mnuch said we still have a lot to do. He had an appearance on fact foxbusiness news. Nancy pelosi said she needed further clarification on both positions. But on foxbusiness, mnuchin said, quote, the president has instructed us to come up in the amount of money in the stimulus package, come up significantly, so we have come up from the 1 trillion deal. That is where the republicans said they would not rise above. They would not spend one penny more. The president that sent then ifd, well, 1. 5 trillion, you include targeted stimulus for the Airline Industry. Mnuchin also said he and mark meadows, white house chief of staff, met with the president before they went to the negotiations on capitol hill. It seems when you put it all together, the message is progress is being made. Timing. Congress is going to adjourn on friday until the middle of november, until after the election. And the election itself is certainly a big factor perhaps here for the president. No matter how big that package is, perhaps he sees it as a plus, a potential boost to his reelection odds. And that is another reason we are starting to see more ground being given. How far will the republicans go . How much will the democrats be willing to give in . That remains to be seen. Looks like these next couple days could be very interesting. Saysnda meantime, the fed it will not let tax start paying dividends again. What is the concern here . Kathleen they want the banks to stay healthy. They know the economy, while it is doing better in the third quarter, the rebound after a nearly 32 drop in the Second Quarter is supposed to be 30 , jobs report this week, payroll gains are expected to look good. But the fed said they will keep them its on dividends, and they are in keep limits on dividends, and they will not let them do stock buybacks because of Economic Uncertainty from the ongoing virus. They also are looking at the need for the Banking Industry to preserve capital. If you start paying dividends, if you start buying stocks back, that will boost your stock price and help a lot of bank executives. But it puts the bank in a position where if there is anything unexpected now in an already struggling economy, an economy that is doing better, they do not want the banks in a position to raise capital again or curb lending. This is very important. Its not necessarily where the banks are. They have made sure that banks do have a lot of capital, but they want to make sure they keep that way so they do not put the government at risk again and they did not pull back on bank lending if things did not go so well. Haslinda Global Economics and policy editor kathleen hays. Still ahead on the shelf, the bloomberg dollar index shows its worst performance since 2017. We will get more on that with a senior e. M. Strategist. Rishaad an index that tracks the mood ending a six quarter streak of declines. The question is, is the worst over . We ask alicia herrero. This is bloomberg. Haslinda you are watching Bloomberg Markets asia. Pmi data across asia from countries including vietnam, indonesia, the philippines, thailand, and china. Most of them showed an improvement from last month, suggesting the recovery is maintaining momentum. Lets discuss that with chief asia economist Alicia Garcia herrero. Good to have you with us. When you look at how the asian pmis are showing improvement, but most are still in contraction. Indonesia in particular is dire. G higher looking alicia frankly i think we are starting to see a decoupling as far as china is concerned. Of course hong kong still we had very poor. But overall i think the rest of Southeast Asia is still looking green. I think the reason is, first of all, china is not importing hardly. U. S. , very, from the little from europe and Southeast Asia. Second, frankly speaking, we have seen renewed lot downs in many countries. So it is not yet working fully. But we cannot forget that traction. If china finishes the year on a positive note, i think these economies will start seeing the light at the end of the tunnel. Thisnda but we talk about brought recovery in china broad recovery in china, but when you look at asset investment, it is only inching back to growth. Surely you have to question how strong that recovery in china really is. Alicia yes. Very good question. Actually i think there is a recovery. Its just so much governmentled. Assett of the fixed investment growth is coming from state owned companies, local government, etc. The minute you get out of that, its very poor. Retention, how much of that is stimulusled . Its a big question to me. Becausesitive on 2022 the stimulus but if you look in detail, i actually do not think the vshaped recovery be meaningin 2021, so i think you are actually right. The issue is more down the road. I think 2020 is say for the time being, but not the right engine, if i may say so. Haslinda if you look at it as down the road, we have to look at chinas next fiveyear plan. What are you anticipating . What would help . Alicia frankly speaking, we hear a a lot at the center of that fiveyear plan. I think that is quite worrisome, because it is more selfreliance and trying hard not to be dependent on the rest of the world. Frankly speaking, not even a country as big as china cannot be dependent on anything. So that worries me. What we should be seeing on the onitive side is working reform. It is unfortunately first thing you hear is more tighter control on state companies. If however we managed to have a real reform and much more efficiency games, competitive neutrality, all the things we have heard many times, that would be great for china. The big thing i need to see in that fiveyear plan is what to do with this massive which by the way i am growing. I understand that we are in an emergency, but what next . Still waiting for the same thing, i am afraid. Rishaad i want to pivot to japan. Numbers show sentiment among big manufacturers are deeply cut. This is a country which has got demographic contraction, aging population, a deflationary economy. Is there any way for japan to come back, and what do those figures we had today tell you . Alicia well, they tell me a couple things. First of all, as much as we like to argue that if you age, you are doomed, based on japans experience basically. I think we have counterexamples fastcountries that age as as expanding economies. We have taiwan and korea, and we have others. To a lesser extent thailand and vietnam. That does not have to be the case, because it is all about productivity. Understandnt here to of course we understand covid19 was a shock, but it was not as big a shock in europe. What justifies japan struggling is the lack of reforms, especially on the labor market between key labor protectively. Productivity. It has kept for such a long time, notwithstanding abenomics, is at the core of growth for japan. It is not only about aging. Basically they need to speed up on this. It has been a while. And i think becoming absolutely urgent. Areaad but the lessons instructor he from japan as they try to get their growth up as well. You say of course there are more reforms needed. Countrieser following what they have done . And if you keep the same thing hoping for a different result, that is the definition of insanity. Alicia that is a great question. Hope thepeaking, i world [indiscernible] good. , so i do not think the problem with japan is Monetary Policy. There was not much they could do other than what they did. Arrow,as we fall that were fine. Of course the problem is we are following other aerial other arrows. Llowing the fiscal arrow. Not everyone is japan. [indiscernible] this is not the case with many others following japans case. Nobody talking about reform. On the contrary. Everybody is talking about anythingg jobs, if increasing the roles. I think that is the scary part. Japan actually did not do as much in terms of increasing the role of the state as they could have done given their resources. Hope rishaad always a pleasure talking to you. Alicia Garcia Herrero joining us from taipei. Coming up, Japanese Equities failing to kick off the fourth quarter. The biggest glitch in a decade has halted trading in tokyo. Details, coming up next. This is bloomberg. This is bloomberg. Problem a network forced the operator of the Tokyo Stock Exchange to halt trading on thursday, freezing buying and selling thousands of shares on the first day of the new quarter. The issue dampened investor sentiment, particularly given the strong u. S. Stock market overnight and closures in other major markets in the region. We are joined on the line from tokyo. This is possibly the largest glitch in 10 years. It does remind you of the concerns that happened in new zealand about those four days of glitches. Absolutely. In terms of the scale, this obviously is potentially shaping up to be the biggest one on record. There was a very large glitch in 2005 that halted trading for about 4. 5 hours, but we are already coming up on what should have been the morning session and there is no sign it will be restarted right now. The comparison to what happened in new zealand, the Exchange House told us they do not think hacking or cybersecurity is an issue in this case. But they have given very Little Information so far on what is the cause. So we are just trying to find out more. Whenad so no window as to it will get up and running again here. But it does perhaps come unfortunately we were looking at low volumes in asia, but it came on a day when we got the allimportant survey. Absolutely. Of asia isat most off is probably a good thing in terms of the impact or the reaction that they are going to get from angry traders who are unable to trade. The volume of Foreign Investors in tokyo is very high. When volume is off my trading it has left people unable to trade according to people we have spoken to, they reckon that the impact if they are able to resume sometime today it will if be too significant, but the entire trading day is canceled today than obviously that will be quite significant and lead to a buildup of orders tomorrow. Rishaad thank you very much. Lets have a look at some business flash headlines. The pandemic smashing global air trial. It is not stopped the founders of lion air from planning a new airline. The countrys transport ministry has confirmed they are requesting a new license but has not released details. July butl rebounded in still well shy of the 7 million it took last year. More than 500 workers at j. P. Morgan took assistance from taxpayers aimed at helping businesses from the pandemic, and they should not have. Bloomberg broke the news last month that some employees than a fitted, and sources tell us a hasty probe found the problem went much deeper. J. P. Morgan is the largest and most Profitable Bank in the u. S. Electric truck maker nikola is postponing its in person world content where they were planning on debuting its plugin pickup. Regroups after a stock selloff and departure of its chairman. Nikola has been accused of deception in talking up its technology. Aboutare prices plunged 40 since going public in june. Haslinda in the markets, asia posting modest gains as we kick off the fourth quarter. Several markets are on holiday today and for the rest of several days. Optimism after Steve Mnuchin talked about compromising. A stimulus deal could be in the neighborhood of 1. 6 trillion. Trade suspended in japan because of a network issue. Dollar, currently down about. 1 . It posted its biggest quarterly drop since 2017. Gold flat at 18. 96. Asx 200 leading gains. ,ustralian miners in focus after credits were upgraded. 50. 63 ahead of the policy decision. Set to leave rates unchanged at 2. 25. Dollaryen, 105. 50. Volatility among g10 currencies on the stimulus. Plenty more to come. This is bloomberg. It is 10 29 a. M. In hong kong and singapore. 10 29 in washington dc. The u. S. Has avoided a shutdown of the federal government after the senate voted 8410 to pass the stopgap spending bill. The bill now goes to President Trump who is expected to sign before the midnight deadline in washington. This would keep the government running through december 11 at current spending levels. The covid relief package is a separate discussion. Meanwhile, the commission that runs u. S. President ial debates says change is coming after the first clash between donald trump and joe biden. It ended into insult and chaos. Extra measures will be needed to ensure a more orderly discussion. Precisely what remains on unclear. Candidates talk over each other and relatively few policy statements. At that the debate last night was great. I thought that the debate last night was great. We are getting tremendous reviews on. Biting was unable to talk about law and order. Leftse of his radical followers. I dont think there are too many of them that. I thought it was a great evening, an exciting evening. I see the ratings were even hot every high. Thebiden the president of United States conducted himself i think itt he did, was a national embarrassment. The Federal Reserve is extending through the rest of the year. Its constraints on Dividend Payments ensure a buyback. The statements will continue due to uncertainty from the coronavirus and the need for lenders to reserve capital. The movie is likely to disappoint the banks. Jp morgan said it is interested in resuming share buyback. ,lobal news, 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am karina mitchell. Rish. O you, rishaad lets look at the index here, moving slightly to the downside. We had some positive news regarding the dollar. Fiscal stimulus negotiations taking place in congress. Pound to move up for the as some markets have been seeing a glimmer of hope with headingions in the eu for an exit. The aussie dollar is slightly stronger as well. Up angets brings interestRate Decision. We have a chart to show you. Were looking at a pace of that is done rather well. Emergingmarket currencies. Just to see what is happening there. Pace, one of the best performances. This is what we have at the moment. That is how we have the peso. We have the Interest Rate there, 2. 25 . The bank of central is expected to keep that on hold. One is according to all but of the 20 economists served surveyed by bloomberg. Prudentcalled this a pause. Lets make sense of all of this. Thank you so much for joining us. Today, the bank of central. Quites actually it is informative. That is right. Clearly, the cuts have not done anything to prevent the currency from stre