Nikkei, last 30 minutes of trade. Final stretch of the morning session paid south korea is being dragged down. Currency markets. Sterling, cable, eurodollar, aussie, the sing dollar. 136 following this weeks mas decision and policy response. Fairly flat. We could see more action later tonight and into next week, when you have the likes of chinese gdp numbers coming out. Gyrations on the political scene, i would imagine. Lets go to your first word news and get you updated on the virus situation in europe with the u. K. And france facing tough virus restrictions as global infections are heading towards 40 million. Households indoors going under overnight curfew as they have a new wave of covid19. Daily infections hitting record in germany, italy, ireland, and spain. Reporting the most new cases since april. President trump is ramping up rift with Senior Republicans, saying he supports a bigger stimulus package. He is blaming democrats for delaying an agreement, but says he goes further than 1. 8 trillion. Majority leader Mitch Mcconnell earlier rejected it. He said there is little you need prospects for any agreement. President trump is warning the u. S. Will strike much harder if the European Union goes ahead with tariffs on american products. Brussels has won permission from the wto to put duties on u. S. Aids in a ruling over state to boeing. The eu is weighing tariffs on a range of products, including aircraft and food, but it is likely to delay any move until next month election. Supreme court nominee, amy coney barrett, is said to with majority leader Mitch Mcconnell expecting a vote on october 23. Thats about one week before the election, and would complete the entire process in less than a month. Democrats have little chance of stopping the confirmation, and says it has been rushed for political reasons. Those were your first word headlines. Tom lets get more on the market context now. We are joined by mark cranfield. As we count down to the weekend, what are the key factors were focused on you are focused on . One of the reasons we have a subdued session in asia, is potentially, you have a busy day ahead in europe and the u. S. European stocks got hammered yesterday as more lockdowns happened across europe in major cities, like paris and london expecting something, as well. Then we have a big option in the u. S. Thats increasing, having a big role in the direction, at least in the shortterm of where u. S. Stocks go. Particularly because Retail Investors have become so heavy involved. Last few months, much higher volumes, particularly in the options space, from Retail Investors. They tend to be shortterm players. When options expire related to the indices and some of the big tech stocks, we can see swings, at least intraday basis, and that will affect the wider markets. Tonight will be big for u. S. Markets. People will be anxious to see which direction. They have helped drive the market up, but equally, if people are unwinding, they can push the market down quickly. A lot of people will be waiting to see that air action until they jump in and follow the momentum. That wont happen until later in the day. David speaking of initial direction, the big story as we started out was what happened with the pboc and yuan, tweaking settings when it comes to ethics forwards and the rrr market. Now that its friday, talk about how the week has progressed on the chinese currency. What have we learned in terms of medium to longer term trends for the currency . If you just landed today and have been away for the past week, you would not realize anything happened to the yuan. It is practically unchanged from a week ago. We saw the dip last friday. But offshore, very little difference. What the pboc did was only meant to be a slight tap on the brakes. It wasnt meant to reverse the direction of the yuan. If you look at the fundamentals, so much more positive for the chinese economy. We will get a reminder monday. There will probably be a good gdp number. That contrasts with the rest of the world, particularly europe. The situation for china is better. It should be reflected in the yuan more. Money is going to the securities market. The pboc doesnt want to risk gettingg anything and people panicky about a sudden devaluation of the yuan or anything like that. What i think we can expect is once the u. S. Is out of the way, we will see them use the fixing a little bit more to slow down the pace. They dont want to get out of hand, be a oneway bet, but they will probably realize the yuan will grind stronger because fundamentals are so much better. Tom you touched on the situation in europe, can we draw on recent history to get a sense of how lockdowns in europe will affect corporate earnings and stocks, or is it just too much difference and change . It looks like they are trying to do a lockdown light version, rather than the one we saw in the spring. Afford athey cannot national lockdown, it was just too expensive. They are trying to do it in a more selective way. The u. K. Is doing it city by city. They are aiming for much shorter lockdowns. People have adjusted well to having the virus and getting on with daytoday lives. Sector, it has been reasonably good. Expected, they will be very weary of doing hard skill lockdowns to bring the economy back to a halt. Fiscal stimulus is big, and they dont want to add much more. At the same time, they have to protect people. One of the key things to watch is how overwhelmed hospitals become in various cities. If too many people go to hospitals, they may have to get more severe. If they can avoid that, life can go on and it will not be so damaging for economies, and stocks can probably take heart from that. Cranfield, and to our clients, i invite you to chime in what you think the virus situation in europe might do to the european equities. Breaking news out of japan, entering its last couple minutes in the morning session. Up about 2 for a fourth straight day. The news out of the company, quick and simple. Filing for an application in japan for a covid19 treatment. Shares are up slightly, just over 2 . Lets tell you its coming up. The election is over in new zealand on the weekend, with the Prime Ministers handling of the virus situation having to set off a resounding win. We discuss it with kerkhove. Kerkhove. Tom thai protesters continue to defy bangkoks state of emergency amid demands for greater democracy, control risk aipac partner dave joe tomorrow joins us with that and other geoPolitical Risks investors need to watch. This is bloomberg. Welcome back to the program. We are closely tracking these events over in bangkok and thailand, in case you missed it and in case you dont know. Protestsrnment have been gaining momentum. A rally in the city of bangkok to find a state of emergency to quell the escalating demonstrations in support of a couple of things, like monarchy reform and greater democracy. We will have the risks involved and what to watch. E are joined by daine chamorro as always, a pleasure to have you on the show. Its a regular feature to see protests in bangkok. Is there anything different about what we are seeing this week that perhaps merits more attention . You are right. In the last 10, 15 years, its been a regular feature of life in thailand. Was different about this round is the monarchy and the role of the monarchy in thailand has become a focal point of demonstrations. Thats always a redline in history and in high society, but the demonstrators, many of whom are high school age, college age, have made this central to their demands. Thats kind of an unresolvable issue. It is one of those red lines. How the of wonder government and opposition will work themselves out of that one. Its a very sensitive issue in thailand. David david at the end of the day, i hate to put this in black and white, you look at the set of demands, and you alluded to this, these are very hard asks to begin with. For investors, they look at this, sometimes it matters, sometimes it doesnt. Do we get to a point where Foreign Investors need to worry about this situation escalating . I think over the last 10 years, because we have had a series of political services, particularly in bangkok, people have become more resilient and learn how to work around disruption in cities like that. If it continues on the level it has been, probably not so much. Yout goes beyond that, if get the services across the country, as opposed to in the capital, that becomes a different issue. Of now, most of the businesses are operating there and have adapted to this. But it becomes significantly worse. Thats a different situation. Lets switch focus to the u. S. Election. Competing town halls happening right now, or will shortly wrap up, with the Vice President and president. President trump has repeatedly refused to commit to accepting the results of the election on november 3rd. That is a key challenge. How should business leaders, investors, how should we be thinking about a potential stand off after the election . I think peoples memories are short. If we go back to 2000, it will be the seated election, in which the popular vote went oneway, and electoral vote went another way. It took him out o it took a matter of weeks counting votes in florida to actually decide who was the winner in the end. History, it isnt not a unique occurrence. I suspect the procedures we have in place for verifying the vote and who is the actual winner will kick in, if necessary, as they had in the past. Tom when it comes to u. S. China relations, carryon. But to your point, it does add to the disruption in thailand, the overall air of unpredictability. No one likes predictability. U. S. Chinat comes to relations, there seems to be a consensus that whoevers in the white house, the longerterm strategy, the longer term bipartisan sense in washington is china is a challenge that has to be confronted, and thats just how you do that. What happens in the first 100 days of President Trump happening having a second term, or President Biden . What is the priority in the first 100 days . I dont think its china. There are plenty of domestic problems they will need to focus on, economy, debt, pandemic. I think if you have President Biden, you also have a new team of people at the executive level in the cabinet enabling you to coalesce around what their strategy will be to deal with china. If its President Trump, he may add new members to the team, but one would suspect many of those numbers will stay the same. I dont think in the first 90 days you will see dramatic change. I think if you have President Biden, what you will have is less emotion in the relationship. You will have less tweeting, one would hope, no tweeting. Probably a more multilateral approach to deal with china. But the fundamental issues between china and the u. S. Do not go away. Its between china and most of the western liberal economies and democracies of the world. Things like human rights and territorial issues. So thiiseally aenerational shift. Its a generational shift in a relationship. It doesnt matter if its in the white house, that relationship doesnt reset to what it was before. The atmospherics may change, hopefully they improve. The fundamental difference is it is a domestic conflicts conflict between china and the western liberal economic model. That doet go away. David it looks like this is going to be he well beyond our lifetimes. This, theedbout established versus the emerging superpower, thailand. Is there anything else that you are busy with with your clients . Is there a common item you think we should be paying attention to . Thingsof the interesting is despite the negativity you hear about in Economic Forecasts and things like that, we see a record amount of investment coming to asia, including china, including investments from the u. S. To china. That has not dropped off, despite what people may suspect on atmospherics and relationships. Record amounts of theres a reason for that. The reason is asia is 50 of gdp growth. China is two thirds of that figure. If you are a business looking for growth opportunities, its impossible to ignore this part of the world. Some countries are more challenging than others in this region. You cant avoid doing business here, finding partners, selling into this region. I would say that is sometimes counterintuitive, given what we read about every day, and what the Economic Forecast are. Asia will probably bounce back more quickly than europe or north america. We see a lot of new investment coming to the region. We see some countries trying to take advantage of that, like indonesia with a recent passage of the omnibus jobs bill they just did. China has been aggressive about taking advantage of that. I think thats the most interesting thing. We see a lot of interest in a lot of demand and investment clubs. David i always love ending these conversations with a positive note. Thank you for that. Great painting, i should also note. Daine chamorro, have a great weekend. Carlyle group has invested about 1. 5 billion in asia alone. We hear from the ceo, which sector is in the region they are focused on. Thats next. This is bloomberg. The pandemic has posed multiple challenges for the world, also opportunities for investors. Carlyle groups ceo, kewsong lee , spoke to bloomberg about how the firm will invest in a post pandemic world, and why asia is a key focus. Of thisifficult part whole equation is you have significantly pretty that has an ability for these valuations to stay high, and in some cases, even push higher. The issues i think we all have to be aware of these in my mind, liquidity does not equate solvency. And we have to think about the fact that after the last great financial crisis, we had situations where companies were illiquid. Ut in fact, but this time around, it may be companies that are insolvent, but remain liquid. If you go back to the spring of this year, i was worried about what would happen in 2020 with the onset of the crisis. As we look back, 2020 may have exceeded our expectations from earlier on in the year as to exactly what happened. We havelem may be that kicked a lot of issues into the future. We deferred a lot of issues. Thats when the square will be when the circle will be squared up. Next year, some of those issues may come home to roost. Less versus have is expectations, a less positive year. So we think there is a separation between markets and the real economy. It is supported by liquidity. It will be an interesting environment Going Forward as we go through it to see where the opportunities will be, and how to take advantage of it. The good news is at least at carlisle, we have a longterm perspective, a Global Platform with industry expertise, and we are perfectly prepared and positions for these types of environments as we navigate through. David what are the conversations you are having with your deal tease . What are they bringing you that feels interesting, in terms of sectors, that maybe you invested in traditionally, or that you have stayed away from . Across the spectrum, i think about something to get specific, like retail. , retail i feel has an acceleration to the downside in many ways that was already underway. How do you invest in a space like that . You put your finger on it. Theres a wide dispersion of outcomes. Certain industries, we see the portfolios accelerating in growth, be it the zoom info or telemedicine. Other sectors, they could face existential issues, to the point you just raised. Is independent on having industry expertise and a Global Platform to sort through where you think the winners will be, and where we should be more circumspect, in terms of our investing approach. In general, there are a couple of buckets to be thinking about. Asia, in particular, is growing faster. We see a lot of opportunity, we have invested close to 1. 5 billion in health care companies, tech companies, we do see huge opportunities in credit, because Asset Classes are reacting differently. In credit, we see more opportunities because of the volatility and dislocation occurring. Finally, you have to be able to pivot and follow the large buyouts that are delayed at the moment. We do see a huge opportunity in Growth Private equity. Particularly in Industries Like technology and health care. That was carlyle groups ceo, kewsong lee, speaking exclusively to bloomberg. Quick latest business flash headlines. Still has a roadmap for the future if a proposed high up with gm unravels. They will revert to what they techthe base plan to share and manufacturing collapses. Relations with gm have been under pressure since nicola and its founder were accused of deception. He later stepped down. Twitter says all function should be back in a couple of hours after an outage that affected users around the world. The companys website reported and the regularity with its platform, but says internal problems are being identified and fixed. Internet outage tracker, down detector, it is 10 29 a. M. In hong kong and beijing. 10 29 p. M. In new york. Here are the first word headlines. China is set to pass a new law that would restrict sensitive export on National Security grounds, raising the stakes for the u. S. Over technology that will drive the modern economy. The export control law would regulate sensitive items and supply all companies in china including those with Foreign Investors. It would also put china on a path with the u. S. Which uses export curbs against adversity. Judge says she is unlikely to rule in favor of the white house. She says she is not inclined to grant the governments request pendingay of pending the appeal. She has the latest evidence on National Security concerns and has not changed her opinion that the curbs would violate free speech rights for chineseamericans. Vice president ial nominee, Kamala Harris is suspending all travel after some of her staff tested positive for covid19. Her Campaign Says she and her husband are both negative and the latest tests. But she is taking extra precautions. Joe biden was negative in his latest test. Neither of the steppers was in cotton close contact with him. His schedule not be affected. Inigovernment protesters thailand have defied Police O