They are suspending trading in hong kong. We dont know the reason for that but we will bring you the reasons when we get it. Backdrop, the hang seng up by half of 1 . The authority spending a lot of money to defend the dollar peg. That is something on peoples. Inds as people make a rush 0. 5 toi composite, about the downside. Of what istrends going on as far as Market Action in this part of the world. Lets look at some of the first word news. President trump seems to have abandoned any hope of a virus package before the election next hek, telling supporters that sees a deal coming after the votes. Package covid19 continues to soar in the u. S. In newlizations jumped , ando, 50 in wyoming elsewhere in connecticut. France is planning a nationwide lockdown bid one in four airports in europe are collapsed as the virus europe face collapse as the virus stifles travel. Kar inion people in kash were said toince have undergone checks over the weekend. Authorities found five confirmed asymptomatic ones. All of the people testing negative. Amd has agreed to buy rival xilinx in one of the biggest chip acquisitions ever. It looks to take on Industry Leader intel. Get 1. 7hareholders will amd shares for every one they get in xilinx. Global news 24 hours a day on air and on bloomberg take, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. The recent strength in the yuan could be tested in the as authorities in beijing change the way that the reference rate is calculated. It effectively means Market Forces will play a bigger part in the yuans movement. Lets bring in mlive emerging markets specialist. China appears to be abandoning the countercyclical effects. What is the significance of this . Primarily a step toward alleviating the regime. It is much easier to do when you do not have the depreciation pressure. Be basedissions will only from the official close and movements in the tradeweighted Exchange Rate that occur overnight. Rishaad does that have the effect of weakening the currency or doing the opposite . Run, itn the short would probably weaken it. It works at the margin because speculators have it sized in inverse proportion to the currency. It will require one of those speculators to apply. It works in the inverse as well. It does not change the underlying fundamentals which are pretty favorable toward the yuan. Large yield advantage and strong balance of payments. Haslinda simon, do authorities keep ther tools to currency from appreciatings . Toon if they still want influence the closing price, that is the basis. They could influence directly cutmarket, and they could Interest Rates and make the yuan less appealing. Thank you very much rishaad thank you very much indeed for that. Simon flint from bloombergs mlive team. We have investors piling into hong kong to get into the Ant Group Mega listing. It means demand for the local dollar has really soared. They have had to flood the system with unprecedented liquidity. This is a figure that we have had bandied about. Record 31. 8y, a billion hong kong dollars to curb the currency strength. More on thatw story and all the days trading on our markets live blog. If you are a terminal user,. Mli just go mlive entrepreneur on the pharmaceutical industry and how she promotes equality. Haslinda up next, warning against a bullish scenario. Prevailing in markets with respect to the u. S. Election. She said we might be in for a choppy fourth quarter. This is bloomberg. Rishaad we are back. We look at the dollar, g10 peers, investors sour on risk assets the week before the election. Plus, rising covid cases in europe as well as america. Laura fitzsimmons. Do you think that too much has been baked into the dollar in regards to a blue wave ouray joe Biden Victory. This does not look that cut and dry, certainly . I think particularly in fx markets, it does seem that clearly this week u. S. Dollar scenario, we feel that positioning maybe is a little bit of a risk going into the election. Some competition, particularly thenst nbnh today, one of more prescribed positions for short dollars and we will see how this may unravel through the coming days. This situatione where we could get a Biden Victory and Republican Senate. That could mean gridlock. Laura i think we just have to look at the last few weeks when we have a lot of headlines around the stimulus package that we still have not gone. I think that that can clearly be a sign of things to come. I have not sure why markets are quite complacent around that scenario. There are elements of, if it was not a blue wave and you had the Republican Senate keeping on the lid of some of the more controversial tax policies of a biden presidency, that alleviates concerns. But on the stimulus front, it does create some issues. That is where the market has been a bit complacent we have been warning investors in the back few days to maybe pare some of their strong risk position. Biden, maybefor that continues more. Agoll remember for years when markets were surprised and now, what could happen if that is the case again. Haslinda you talk about how the feels complacent. Whether or not it is biden or trump, stimulus will come, Central Banks will keep rates low and they will do whatever it takes to support the economy . Laura i agree with you on the latter, that Central Banks have shown their intention to stay the course. I do feel come on the stimulus front, there will still be negotiations that could continue to be bright continue to be quite protracted over time. Particularly if the economy now experiences a third wave of virus cases. They lockdown, chicago restaurants for example, closing all indoor dining. When it comes to winter come Overall Economic activity. That is why a stimulus package is important. The outcome would really hurt the outcome happening Going Forward as well. Haslinda what does it mean for the dollar . Some say that beyond the election, it is on a multiyear downward trend . Can that persist given the virus scenario . That could probably dollar instead could prop up the dollar instead . Laura if anything, the speculative position, dollar long. Also seeing some unwind of those dollar shorts. I think we are seeing that activity already this morning. There is a bid we have started to see come through to treasury markets. There has been a lot of hope around a blue wave. The curve, because in the end, there could be more stimulus. As the odds get a little bit less inviteds favor and a little bit less in bidens favor, investors are looking at the nittygritty of whether that can work. What they think will pan out, totally understandable, and i think that is where in the end of q4 in particular, no matter the outcome, it will be an interesting one. Yearend also. Whene want to take off, they may have been quite successful trading throughout the pandemic crisis. That in addition to general taking of risk, i think that overall could lead to some choppy outcomes. At cpi numberng out of australia. Recovery and the headline number, we got that. What are the implications . Laura we are looking at little bit higher than what was delivered at 1. 8 versus the 1. 6. There was that expectation that you would see the bounce back from the dip in q2. Forward, we looking will probably continue to see governmenttralia inflation linked bonds, which had been a little bit of a thing heading into this. For the rba and what that means for them, inflation is no longer the clear focus. A few years ago, they made it quite clear in their last statement that unemployment is the national priority. Around there is still help needed for the unemployed in australia. We clearly come out of this as being a lockdown in victoria. We had comments recently from rba this morning around the rba going even further. Tuesdays november decision, a drop in the yield curve targets as well. There is hope in the market around the package that was hinted at recently in speeches. There is hope around the qe purchases. Certainly, the market is trading quite feverishly in advance of that. Haslinda having said that, lets assume that the rba will buy bonds across the curve. Laura i think they will. Our strategists are calling for this next year. Starting in february, a program of 75100 billion. The semi government bonds. I think the market got quite size and duration, etc. This is where, i am going to deliver, the aussie 10year futures, for example. Trade remains for australian fixed income markets, to look into 2021, to look for the rba to continue to be in play. Stage, yielding australia will go lower in the mid to longer part of the curve. But you may have to be a little bit more patient. Haslinda always great to have you on the stereo on the show. Jp morgan australia executive director of macro sales, laura fitzsimmons. Sachs seen aldman bull market in 2021. Jeff market jeff curry explains his optimistic call next. This is bloomberg. Lets have a look at the business flash headlines. Microsofts First Quarter revenue climbing to better than anticipated, driven by demand for cloud services. As more employees work from home and more businesses went online, sales ahead of average estimates. Net income it 14 billion, also above the average forecast. Insurance profits rising 8 . The stock organ rally boosting investment returns. Thanincome climbing more 5 billion in the timeframe from a year ago. Profit accelerated more than 4 in the first nine months of the year. India is the second biggest Wireless Phone operator. Intense competition has hindered any hopes for an increased of the cost of calls. 100 million although revenue was up 22 . That perhaps signals the recovery may be near. Haslinda lets talk commodities. They are in focus again with Goldman Sachs cna bull market next year. There have been concerns about the viruss impact. Supply is a key factor. Every single commodity market, with the exception of coffee, cocoa, and iron ore mrna deficit. That is because the it to supply has been massive despite all the worry around demand. In terms of thinking about demand, the covid comes in waves. One third of the world right now is coming out of their infection rate. Places like melbourne, australia, india, places like that. It is improving while another third is going in. Then you have a group in the center, one that moves around. Downey point, supply is substantially. Markets are all in deficit. That is something that typically happens at the end of the business cycle, not six months after hitting a trough. I am not worried about what is hitting one third of the well because another third of the world is opening up. Your neutral, mediumterm overweight, what you are saying is there is no shift to the right in terms of the timing, for instance the covid cases rising in europe . An impactnitely has at the margin. I will go back and say it again. Every single one of them. A few agriculture markets are in a deficit, which underscores the structural shift in supply that we have seen. There are three key themes we are focused on as to why we are so bullish Going Forward. One is structural investment. The second is policy driven demand. The third is a macro tailwind. Structural and investment, this is a theme we have been talking about structural underinvestment, we have been talking about since 2013. New economy sores, great returns. Moves all the capital to the new economy, starves the old economy of the capital it needs to grow. Oil, thenly on overlay esg concerns, capital has been siphoned out of this sector. Policy driven demand, this is as big as the story 20 years ago. We calculate the impact on copper demand because of infrastructure stimulus around the world is bigger than with the impact china had in the early 2000s. The fact that you had a macro tailwind of a weak dollar of a concern as we start to look up years beyond. I am glad you brought up the china situation. You mentioned one third of the world may be under lockdown but the other is ok. I assumed you were mentioning asia, in particular china. As china is outlining a new fiveyear plan, that looks to be they will go at their selves with different industries. They still seem to be an export powerhouse, but they have to have some shift in the commodity market. If you look at what has ofpened, chinas share global gdp has accelerated. All of the big commodities movers particularly in asia now occupy a bigger share of the overall pie in demand. Think about the growth of economic activity. This has had a big impact. When i say we are really bullish, i want to emphasize, nonenergy commodities like base metals, precious metals, we want to be long today. The energy, particularly oil, we think technically you do not want to be long until the winter. Because the demand hit is much larger there. There is only one commodity, oil, that we would delay that bullish view. The rest of them, particularly given what is going on in china, we want to be long today. Particularly copper. Fromad jeff currie Goldman Sachs. Lets get the markets. The japanese lunch break nearly upon us. A lot of folks at the moment in focus. We have, for instance, the likes of a and a holdings, may be up just a fraction. Four operating losses of ¥505 billion. That has already been priced in. Internet, up nearly 20 . Sony up with numbers later today. This is bloomberg. Its moving day. And while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. It only takes about a minute. Wait, a minute . But what have you been doing for the last two hours . Delegating . Oh, good one. Move your Xfinity Services without breaking a sweat. Now thats simple, easy, awesome. Xfinity makes moving easy. Go online to transfer your services in about a minute. Get started today. President trump seems to have abandoned any hope of a virus package before the election next week, telling reporters that he sees a deal after the vote. He repeated his accusation that nancy pelosi is demanding funds to bailout Democratic State and local governments, and saying the best package is on the horizon after the election. Londonxit negotiators in as the size try to hammer out a deal, Michel Barnier is expected to remain in the u. K. Until wednesday before talks moved to brussels. The Eu Council President says negotiations are at a difficult stage with the clock ticking. Debt is increasingly worrying the reserve bank of india. Any report says states are taking on more financial obligations to fund the fight against covid19, and that is adding pressure on local government. The pandemic has devastated revenues at national and state level, and the government has revised his borrowing plan to 1177 billion u. S. Dollars. The first test for Prime Minister modi, and his party since the pandemic struck. India has one of the worlds strictest and biggest lockdowns. Covid cases are continuing to soar amid spiraling unemployment. The vote is spread across two weeks. Global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell, this is bloomberg. Checkda lets do a quick of the latest markets. Asia mostly lower, lingering concern about the virus cases, which may disrupt the economic recovery. Msci asia pacific index down 0. 3 . Futures pointing to a lower open. The story in china is about the yuan, and the pboc tweaking its model. The csi down 0. 3 . Keeping ang, we are watch on brilliant auto, bonds plunging in recent days. After itabout 150 admits a repayment, and that stock has dropped 10 over the last four days. The hang seng lower. In manila lower by 0. 3 . Day for bigis a big tech. Microsoft coming in ahead of estimates, first go to revenues, 13 straight doubledigit sales gains. Su keenan joins us. This is one of the biggest in the chip industry. Su it also brings risk to almost a record number, the number of m a deals consolidation we have seen in this space. Very well received by investors. The all stop deal expected to close at the end of 2021. The deal will intensify, and the battle with intel was spurred by it. The Data Center Chip market. They have been able to take market share from intel, which has been well reported to be struggling with internal issues in manufacturing. Amd executives said on a Conference Call that they thought the combination will help push amd to the front of the pack and leading the industry. Lets listen. Xilinx has a strong Business Model with long product life cycles, besting class margins, and strong cash flow, which are significantly additive to amds financial model. Reporting the combination during its Quarterly Earnings call, where it announced profit was off the charts across the board, a Strong Quarter for amd, and a big year for chips, 2020, on pace for a billion deal so far. Turning to microsoft and surging sales, cloud played an important role. Su booming cloud demand is the story. That has lasted through the pandemic, which has boosted the move toward digitalization, and work from home tools. First quarter climbed better than 12 . We saw after hours trade were earnings are reported flat during the session after driving 1. 5 . For theme 37. 2 billion quarter, exceeding expectations, and the Software Giant 13 straight quarter of doubledigit revenue growth. Corporate customers have accelerated the shift toward cloudbased services and online subscriptions for Office Software that provides everything from work from home tools to videoconferencing. We are seeing videogame sales off the hook, the ceos are delighted about the early xbox sales, they have a new xbox shortly. Amd makes the chips for the xbox, and this report is easing a lot of fears by tech observers early in the year that the pandemic would knock the wind out of tech sales. If anything, this report underscores that we are seeing america and corporations around the world move toward Online Services and cloudbased services. That has been a boon for microsoft. Rishaad thank you, su keenan. We go to philadelphia, the c