Yields, even fiveyear yields at the highest level for more than a month. We are looking ahead to a few fed president s who will be speaking later today. The picture where policy will be in the months and days ahead. Seems like there is some optimism on some kind of stimulus. You can also argue that investors are looking past what happens in congress are looking more towards what happens for this election right now because the polls into a suggest, are in favor of biden. Not sure this price president ial debate will change the dynamics of that but certainly we are seeing most risk assets are outperforming with the exception of hong kong which is down 0. 8 . The kospi gaining. The Third Quarter was a surprising beat there. Nifty futures also higher by a touch. The dollar has been pretty steady. That is helping some of the asia fxes here today. In terms of movers, samsung electronics. We mention that surprise beat there. It seems like the stock is been lower by 0. 5 . Alibaba and tencent are watching out on that. Of the u. S. Exploring restrictions on tencent and ant group, a a lot of questions about what that means for the ipo is whether china could retaliate on this, has. Haslinda now lets get the first word headlines for you. Theident trump is back in oval Office Despite continuing to be treated for covid19 and being potentially contagious. He has not experience any symptoms in the past 24 hours, having been discharged from walter reed monday. President trump has been speaking about his experience and says he did not have to go to the hospital but did so on the advice of medical experts. I spent four days there, and didnt have to. I couldve stated the white house but the dr. Said because you are present, lets do it. I said fine. You tell me what. To do andim going to listen. Haslinda a new stimulus package is on hold in washington. Nancy pelosiaker seems to be open to airline relief. Seven mnuchin republicans blocked such a bill last week and called for more talks. Airline stocks rose sharply on the news. The white house ended wider stimulus negotiations. The Trump Administration is set to be restored soon exploring restrictions for tencent on concerns that payment restrictions are threat to u. S. National security. The white house is concern the chinese fintech giant will win access to thewin banking and personal data from millions of american come to dominate global payments. However, we are told that no decision is imminent. Samsung Beat Estimates in the Third Quarter as his businesses benefited from restrictions against rival huawei. Posted a preliminary operating income of just over 10 billion, around 20 above average estimates. Samsung released its final results later this month. And those are your first word headlines. Vonne Kamala Harris on my fence faced each other and the only Vice President s debate on how to the november 3 election and what was a much more muted affair the last weeks debate. Not surprisingly the coronavirus, the economy, and relations with china topped the agenda. Sen. Harris the president s trade war with china. He lost that trade war. He lost it. Up happening is because of a socalled trade war with china, america lost 300,000 manufacturing jobs. Farmers have experienced bankruptcy. V. P. Pence loss the trade war of the china . Joe biden never fought it. Joe biden has been a cheerleader for communist china over the last several decades. Ourne lets bring in analyst for morbid this debate a than what weer one saw last week and watch more focused on policy. What were some of the key issues . For tame than the president ial debate was not a difficult thing to accomplish but nonetheless it was the candidates more polite and allowed each other to speak on were some some substantive policy issues. Wereirus and the economy front and center. Covid19 unaffordable since the very beginning of the debate where the moderator opened acknowledging President Trumps own illness with the virus. Of course, the senate and set 12 feet apart with the plexiglas. Kamala harriss opening my was that the American People have witnessed what is the greatest failure of any u. S. Administration in the history of the country, referring to the Trump Administrations handling of the virus. Mike pence said the president spent a lot of time on the defensive and deflecting senator harriss attacks. Harris had to deflect, mike pence command after her as with with a question of whether or not she and joe biden was stacked the Supreme Court. Joe biden avoided answering that question in the debate last week. After the spring court, health care was a big policy discussion in this debate. Of course, china as we just heard them say. Paris saying that trade war his cost 300,000 manufacturing jobs harris saying. Climate change was a big thing as well. Mike pence saying that the Green New Deal would hurt u. S. Jobs in u. S. Energy. Really i everything i think you taking back to the economy and the virus. It remains as a question as to whether enough the each of these candidates did enough to tip the scales on the election. Usually Vice President ial debates to not have that much sway that this is a very different debate given the age of the president ial candidates who are running and then of course President Trump soown illness. Anda give us up update on the president s illness. Doctor says he is not have a fever for four days. What he has not said is whether the president is still contagious. As ifstill being treated he could be spreading the virus. We know the president returned to the oval office in the west wing on wednesday. That was the first time after isolating and the residence he returned to the white house from walter reed on monday. The president chief of staff, the chief of protocol protocols are in place, only he and the White House Social Media director are sharing the oval office with the president. As far as the returned to the campaign trail, President Trump has been sidelined from that the bloomberg is reporting the president plans to return as soon as monday possibly traveling to pennsylvania followed by florida. And that would be his first appearance since the positive diagnosis. Yvonne still a lot of questions on whether we will see a president ial debate next week. Thursday we mark 26 days out from this election. What to the polls tell us upbidens lead is widening 10 percentage points. Several keyg in states, 11 points in florida and 13 points in pennsylvania. And u. S. Elections, the general popular vote does not matter. It is the Electoral College and those are states that are key and that, 538 which is appalling allocate segregated with bidens chance of winning the Electoral College at more than 82 . Haslinda kailey leinz in new york there. Still ahead we speak to the former highlevel state Department Official in the Clinton Administration asked how a Biden White House could shape relations with beijing. Rom 21st century china later this hour. Yvonne just under four weeks to go until the u. S. Election. We look at risk markets with the head of fixed income, just a head. This is bloomberg. Haslinda you are watching Bloomberg Markets asia. Lets check on treasuries. Yields are higher. 8. 18. Ve 10year at 7 yields are at the highest levels in most in the month. With polls showing joe biden his lead against President Trump. They are considering a democratic administration. That would push yields higher and curb appetites for asian bonds. Joining us now is Hayden Briscoe head of ubs wealth management. Good to have you with us. President iale debate and some say perhaps that changes nothing but biden, if he maintains his lead, how much of that has been factored into the bond markets . Hayden i think of the moment it is still, were dealing with a very shortterm. When is stimulus coming . Dont think it is a question of the new package coming through of, is it coming or not coming, is when it is it going to come and how big is it going to be . Its going to get broken up into packages. Beyond that, i think we will have to come i think the markets are waiting until biden actually gets in, if he gets in. And then they would deal with that. At the moment they look at the most current package. Look, it feels like it is just going to get in in november rather than october. Bonds are starting to deal with the new supply that is likely come to marketagain, you have to put this in perspective. This is a massive package if you put in the context of back to 2008. This is very supportive for risk markets right now. Haslinda would you say the stimulus is more important than the outcome of the president ial election for bond markets . Hayden absolutely. Right now if you are looking at credit markets, very supportive backdrop. More money, again, just money, money, money. And it is looking for new homes, so its moving from Investment Grade into highyield markets. And then out of u. S. And europe looking more into emerging markets, and in particular into asia as well. A valuation gap of what we see in asia relative to the u. S. And europe. We have a central bank our market we are starting to see that money eke out of where those markets have rallied hard the centralbank support into the asian space. It is very risk supportive across the curve and moving down into the risk of securities as well. Yvonne we continued to see more of the reports coming out of sweep thatbiden blue that this could lead to reflation trade in move up in treasury yields. With that then curb some demand on some of the debt in this part of the world . Hayhden if we did see a big selloff in bonds, there would be some sort of yield curve control. Weve obviously got that in a number of countries not. Its been in japan forever but we are starting to see that across more western countries like in australia. So, i think they have done the job owning the need to do in terms of the fed funds being on hold they have done the jawboning they need to do. If we see the yield curve kick up in that risks the barring knowing how high the risk is now i said i suspect you will see yield curve control come in. Think they, i do not will have too much interesting but controlling the definitely out fives and tens. So, i think that is the year we are moving into. Critically if youre going to have these big packages, fiscal packages, spending and they are going to be very commodity bullish, which at the moment we are starting to see some due supplyliance to constraints and that can become a self fulfilling cycle. I would think that would be bullish for emerging markets as well. We have not seen any commodity nuper cycles in 2012 whe china slowed down its Infrastructure Spending. So this could be a western fueled Infrastructure Spending pressure which would be very commodity bullish. Yvonne you have been very bullish on chinese bonds. How do you trade around the rebound story in china . Someone say perhaps it is more on the dollar mart market the dollar bond market. They could be planning to sell 6 billion in dollar bonds next week. Do you stay with local denominated bonds as well . How are you playing this . Hayden i think the local was theually read the cover recover story pretty well. Chinese bonds have been under pressure since march and we have seen a selloff in the bond market there. Were close to the highs and our yields right now. A lot of that has to do with technical supply. We had a lot of the forward funding, local governments were barring an has to be done by october. To get the Infrastructure Projects going. They have gone on holidays now and bonds arent trading but we suspect that most of that is done now. So, when you are at their bloomberg credit impulse indicator which gives you a lead on the market from the underlying economy from six to nine months, that should be picking up somewhere around the september on october read. You its telling you is are going to have softer numbers around the Second Quarter of next year. This looks like a night a nice opportunity to start leaning into chinese bonds. We would not be rushing because obviously it is still type funding particularly for the small banks in china. Into yearend we usually get squeezes. This is like a place to start adding. Yvonne thank you for joining us. The head of apex fixed income. Still ahead with talk more about learnings about earnings from samsung. Third quarter beating. When it comes to handsets as well as chips. Fromll get more analysis Bloomberg Intelligence coming up. This is bloomberg. We are watching some son after better at expected earnings. We are washing samsung. Rising at much is 1. 3 . Lets bring our Senior Analyst. What were the biggest drivers of samsungs earnings beat in the Third Quarter . I believe that their drive is the market share gaining on the market, given what has happened with huawei. To overseas customers. In the coming quarter, they may also face difficulties in the domestic china market if they have problem with sourcing chips. In addition to that, i also believe the second driver would be the memory chip. [indiscernible] originally expected a sequential decline. This is in line with what the management set in the Second Quarter earnings briefing. But, given the massive earnings beat, i believe that memory chip profit also was better than expected i nThird Quarter in Third Quarter. Yvonne it is benefiting from huaweis woe, with the u. S. Ban that took effect on september 15. We saw huawei rush a glut of orders for extra inventory. Should investors take this is just a oneoff . The memory chip business probably is a oneoff surge. In orders. And i think the market is quite prepared first sequential declines in the coming quarters. So it depends on how well the memory chip maker control the supply in the first half next year, especially in First Quarter controley manage to the supply at what hope that canry chip prices recover and second half. Having said that, i do not think this is the end of earnings price potential. The Company Coming have a lot of positive drivers driving positive growth, especially the smartphone which already was happening in the Third Quarter. At the same time, they are gaining on market share in the memory chip business. Business, they are gaining orders from cal qualcomm and intel. On top of that in fourth quarter, they will have some pent up orders from iphones, the new iphone much. The iphone launch. This Company Still has a lot of drivers. Haslinda do you have any clever arity on the outlook for the memory chip market . Yeah, so, we know that inventory was quite elevated in the beginning of the Third Quarter. And, as we know the biggest reason why memory chip held up pretty well was just because of huawei. Smartphone that demand was down in the Third Quarter but that could not help boost up the mobile chip prices. So we can tell there is a lot of inventory on the customer side. What samsungo hear says about the inventory level when they announced the full set of results. But we believe that the inventory that could take some time to digest. Thats why memory chip prices are not seeing any signs of recovery in the near term. There our Senior Analyst with the breakdown of what to watch for samsung. Lets get to our morning calls rap, focusing on samsung. So, just one example of creating exporters that stand to benefit from a cyclical recovery. Yeah, we have been tracking the improving weve seen in Global Demand for health, asia and goldman liking the korean won. For global cyclical center and resilient chinese demand is a key factor. So, goldman forecasting that the onshore yuan will reach 650 in 12 months. Goldman recommended to go long alongside bonds the expectation that chinas economy will continue to outperform. Haslinda so, we just had the Vice President ial debate. What about the impact of u. S. Elections are nation currencies . Has, we have had plenty fo what thef calls on twha u. S. Elections will meet for asian markets. What a biden win could mean for asian currency, seeing a Positive Side for the korean won and the onshore to when and that taiwanese and singapore and dollars on weakness should be a larger fiscal deficit under a Biden Administration given we would like to see more spending, less confrontational trade policy also a factor there. Jeffries does not see a biden win as a done deal. Why not . Shes seeing markets pricing for a change in the administration in the u. S. At jeffries he is not seeing markets being entirely convinced that a blue sweep happen for the , 22 caution that investors have around commodity linked currencies as well as the e. Mm. Fx space. Hes also saying do not cut out donald. Out teflon today we see emerging markets trade in the type in a tight way in the wake of the Vice President ial debate. Yvonne lets take a look at markets. 4 higher following the u. S. Session we got. It does not seem like this debate really changed too much when it comes the momentum we have seen. The hang seng contains decline down 0. 7 . U. S. Futures pointing higher. 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