From theto the concern economic hit caused by the pandemic. We have job losses here with a more modest hit in this part of the world. Else is going on out there and quickly looking at the dollar index is. We do have the dollar steady at the moment. We had the surge in the dollar seeing a little bit of a spike taking place. Being seen as a haven currency. The yen, 104. 49. New york crude, what we have here is a plunge taking place overnight. Nearly 5 . They recovered a little bit from that. 8 10 of 1 . 67 a barrel for wti. Gold the steady, but not really acting as a safe haven. We have breaking news, the dow jones reporting that it may close to buying nc, according to people and what would be the second Big Semiconductor tie up this week as the industry rapidly consolidates this deal. It could be worth 10 billion. Thats according to the dow jones. Dow jones reporting marvell could be close to buying inphi later this week. Lets get our first word headlines. Not european leaders are imposing tough new virus curves as infections surge and social restrictions failed. Germany and france are going into National Lockdown, again. The u. K. Is considering one. Italy and greece report record numbers. The top u. S. Infectious expert, Anthony Fauci, is warning a vaccine will not be available until january at the earliest or its air asia is reported to be under investigation in malaysia. A 17 million loan from the bank. The Anticorruption Commission is excepting any possible violations after news outlets that they had ordered an independent audit. At hows are looking funds would disperse over installations of a new state government. Tech is being worn that its Legal Protection overt user content could be removed amid accusations of abusing power. Twitter, facebook and google were grilled at a congressional hearing with republicans demanding who put them in charge for what can be posted. Some immunity and content, but have angered lawmakers by limiting some recent stories. At. China relations looks the Justice Department charging a Chinese People for alleged operation on american soil aimed at dissidents. The doj says the agents were carrying out whats known as operation which is beijings effort to track down fugitives and bring them back to the mainland for trial. The first major storm of the year has crossed the u. S. Gulf coast. Hurricane zeta is a category two storm. Louisiana, new orleans, and may be the most powerful storm to hit the city since katrina in 2005. The storm has sustained winds of 110 mph. It is expected to hit new orleans with the strongest gusts in 15 years. Initial damage forecasts are at 5 billion. Those were the headlines. Back to the markets. We are discussing the dollar surge. We have gotten that over with. And advancing treasury will change in keeping 10 year around 0. 70 . Just 0. 78 . 10 year around 0. 78 . What are your forecasts for what you cover . Having me. U for i think we are now just having reaction to the fact that this new second wave in europe is certainly promoting some risk aversion. Naturally the dollar tends to get stronger in this moment. But we still think that mediumterm, particularly when we look towards next year, we think basin area of the global economy, particularly china doing well and looking for emerging markets should be ok. Broadly speaking, in our view we will get weaker emerging markets. The big event is the our foot in politics, u. S. Election. Its just days away. Tell us about how emerging markets investor should be positioning themselves ahead of it . Of all, we think its better to avoid any extreme position for two reasons. One, we know there is a big element of uncertainty in any case. We knew the hard weight in 2016. The second element is that investors should keep in mind that for the medium and longterm, a lot of things will remain the same. For example, the tension between u. S. And china, that is particularly important for asia, is not something that would remain in place regardless of the result of u. S. Election. Touchinghat is the point. Rishaad absolutely. And a lot of it is down to what has been going on with regards to this trade war and other frictions taking place between beijing and washington. But that wont go away no matter who wins, isnt that true . Julio true. Lets put it this way. Reaction in some the nearterm for the election. I thinkarly on the fx, what is worth highlighting is the buyers in the market is for a victory biden. There is also this perception that biden will be more diplomatic and probably try to avoid the tariffs, the trade war. Broadly speaking there is a perception that with biden, the cnh, which is the anchor for the fx in asia, will probably do a bit better. I think its up to them to say that we should expect a bit of a more positive reaction on asia led by the renminbi, the cnh, in the scenario of bidnes victory. Why there is some negative kneejerk reaction against the renminbi in case there is a trump victory. Haslinda lets talk about the renminbi. The yuan has been strengthening. Can the yuan strength put a limit to the dollars climb, to the dollars rebound . Julio right. I think its fair to say that, particularly, in the scenario in victory,have a biden even with the second wave, we think that the renminbi will work as an anchor for the asia fx. In that scenario, i think its true that even though we may have some sort of risk aversion because of this concern with the second wave in europe, in particular, we think that its unlikely that the renminbi will get too weak in that scenario. That is certainly a positive for asia fx. Whats apparent right now is that volatility is climbing. 40. Tility surged past and is kind of environment, where do you seek shelter in asia . What is looking good to you . Julio right. To account that we think that the renminbi trend is rooted on fundamentals, and now that we have more concerns with europe, for example, we think it will hold up well. A key component of this basket is euro. We think renminbi versus euro is something that will probably hold up well looking forward. And more strategically, we think that will we look into 2021, the scenario is one in which eventually we will get the vaccine and we will see a broader global recovery. We think that particularly not asia will certainly benefit in that scenario. So the korean won that has been performing well, our view is that probably there is room for further outperformance of the korean won for next year. That, in having said the bond market, do you see the surge in volatility unsettling bonds . We saw the biggest highyield etf at over 900 million. Im a highyield space, i think its important to differentiate the nearterm response. As i mentioned before, we are certainly now going to some sort of risk aversion related to the second wave. That is certainly justified. Whenever we get those outflows, we see some pain in the market. ,hen we look forward is asiacally, our sense will continue to outperform. So fundamentally its a good story for u. S. And europe. While we look on the valuation side, we see that both in the ig and in the highyield space, asia bonds, the dollar bonds are clearly offering a different pickup. For example, for the quality high yields we see Something Like 150 beeps on average in the high unit in the double b highyield asia versus u. S. So its a compelling story. And take into account that we continue to see, in our baseline scenario, asia outperforming u. S. And europe. We think that that kind of spread that we are getting in asia is good enough and a Good Opportunity for investors. Thank you for your insights. Still ahead on the show, the boj is expected to hold policy later. So investors will watch for the sentiment of the economic recovery. Both our Global Researchers will join us for more on that. The next samsung quarterly profit beating expectations fueled by mobile phones and huaweis moved to stock chips. There are clouds on the horizon. This is bloomberg. Rishaad back with Bloomberg Markets asia. Samsung Electronics Warning of a weaker outlook. The third forecast in quarter because it took slew orders from the Chinese Telecom ahead of american sanctions. Stephen engle is taking a look at those numbers. Steve, we are now into the session with the executives. Anything else meaningful being said there . Stephen there is. They have confirmed that there was a big spike up in those orders from huawei. They call it a rush order in the quarter ahead of those sanctions imposed by the added states, some ofing huawei from the most advanced components from american suppliers. Samsung getting a big order. But the other interesting thing for those investors in Samsung Electronics was looking at the three year and faster return they had delayed about one year ago, or earlier this year because of uncertainty and because of the pandemic. Investors really wanted to see this 20202022 investor return forecast up. The shares are now heading lower in the afternoon session because samsung executives are saying we are not ready to bring that out. It will come out in late january. Shares. A dampen on the shares were reacting lower. And are not necessarily pleased. Pleased on the one hand. This is a twosided coin. On the one hand they did very well and the Third Quarter because of the huawei rush order. But we saw a pickup in smartphone sales at 88 Million Units sold. That is quite a rebound. We dipped down considerably to the later stages of the ark of the pandemic, if you will arc of the pandemic, if you will. 80 million shipments is pretty good, considering we had 98 million of 2017. They are almost back to prepandemic levels. In the Fourth Quarter they are saying its inevitable that they are going to see a slowdown in smartphone shipments in the current Fourth Quarter. Increased competition, apple is out with a new iphone 12. And there is also other , given Discretionary Spending patterns because of the pandemic globally. Theres lots to go through on the headlines. Phones,y chips, smart consumer electronics, tb demand, etc. The politics and pandemic, according to samsung, will dominate the first half of 2021. Haslinda lets talk about the outlooks. There are facing to prosecutions. How much will the Succession Process cloud samsungs outlook . Stephen that is another overhang. When his father passed away this last weekend, he obviously has been the heir apparent to become the chairman. Leaderbeen the de facto anyways through this time of illness for his father. He has passed away, but he has not taken over the position of chairman. We speculated that, look, he has two in pending trials, corresponding trials on alleged bribery and other malfeasance, alleged malfeasance. There is a possibility, if he is convicted on any of these charges, he could go to prison. Maybe. But the last thing they want to do is name him the chairman and then have the chairman head off to prison. So there is going to be a lag affect, several months until his success for dust successor. It will be his only son of the patriarch, but there is an uncertainty and a big tax bill. Of 10ance tax upwards billion. Quite steep in south korea. There is some uncertainty. But keep in mind, the main divisions of Samsung Electronics are headed up by robust and Strong Division leaders who are not necessarily taking orders from the single head of the group. Haslinda our chief north asia correspondent stephen engle. , we areted, samsung having a q a with samsung executives. Out of that discussion, samsung is saying they are awaiting u. S. Approval of license to supply to huawei. Also upside demand from other chinese mobile makers. Those are the earnings Conference Calls still ongoing right now. For now, here is the latest business flash headlines. The board of tiffany is said to have approved its sales to the luxury conglomerate lvmh at a lower price than proposed. The Financial Times says lvmh will pay 131. 50 a share, down from 135, saving about 425 million. They say tiffany would pay it shareholders a dividend of . 58 per share. The yearlong saga has seen french government intervention. Enjoying chinas recovery from the coronavirus, posting a thirdquarter profit and a rebound from the first ever blog. That comes with subtraction. 1. 8 billion in the six months through june. Chinas daily refining rose a record 14 Million Barrels a day as chinas economy strengthens. China reported a Third Straight quarter of negative sales that have strived to cut cost and lifted activity and sent shares higher. Shares fell 6 better than the near 8 forecast drop. The slowdown continues to drag. In july, they warned that its recovery would be nonlinear and uneven as it stays the same. Rishaad coming up, sony shares going hard in tokyo. The company raising its Profit Guidance in anticipation of Strong Demand for the new playstation 5. Weve got the details. This is bloomberg. Haslinda sony shares are soaring in tokyo, of almost 7 after the Company Raises earnings outlook amid a surge in videogame demand. The company is betting on the playstation 5 and predicts more than 7 million sales by march. What does the outlook hike tell us about gaming and sony specifically . Like what the market, its heard, i think primarily sony, like nintendo, has been benefiting from a pandemic surge in Online Entertainment in general. But as has been a mixed picture its movie business has struggled. Also it lost one of its biggest customers in huawei when u. S. Restrictions have slapped down. It now by raising its profit outlook, it signaling that the ps five, the playstation 5, which is supposed to come out in adnovember, will energize new phase of growth. Tliv got some highstakes with regards to the. S5 they aim to sell more than 7. 6 Million Units. That would be led that would be by the end of march. Edwin if they achieve that, that would be a phenomenal pace. It will face steep competition in a new Microsoft Xbox console as well. Then you see the Nintendo Switch is still going strong because of, as we all know, animal crossing and the pandemic era hit. Its interesting to see that sony is banking on playstation 5 to drive its next leg up. We will see, but pricing will be a key factor in how it does against microsoft and nintendo. Haslinda how about other parts of the business beyond gaming . It does look like most of the segments are doing well. Imaginghe smartphone sense of business is kind of a mark, given chinese tensions have influenced supply to some of its biggest customers. I think the smartphone replacement cycle remains uncertain. We know the iphone 12 is coming out soon. Think there are more expectations around that particular gadget, but i guess we will have to wait and see. C edwin chan our asian tech editor. This is what it looks like as sony has a move to the upside. 6. 6 up. A decline in my 10th of 1 . What we have there is a recall of 1. 5 million vehicles taking place. Good numbers there, but thats not stopping them from what is declining markets. We have a boj decision later this morning. And retail sales are stalling in tokyo and japan. Rishaad 10 29 a. M. In hong kong. On the eastern seaboard of the United States. European leaders imposing new curbs as current social restrictions fail to stem the r ise. The u. K. Is considering one as they along with spain, italy and greece report record numbers. The top u. S. Infectious disease expert Anthony Fauci warning a vaccine will not be ready until january at the earliest. The trump demonstration upended the selection of a new leader for the wto. Washington wont join the consensus behind a former nigerian finance minister because it supports a rival korean trade chief. The u. S. Says he is too close to protrade internationalists. Signs of progress in resolving some of the biggest sources in london hope an agreement could be reached next month. London and brussels remain far apart on several areas, including what they term a level playing field. Nasa saying it identified a longrunning air leak on the International Space station and teams in orbit and back on earth are planning a permanent repair. Teams have been searching for the lake for several weeks, though nasa says leak for several weeks, though nasa says they were never in any danger. The iss has avoided any serious incidents thus far. That is a look at your first word headlines. Haslinda lets take a look at the markets. Asia in losses. Not as much as what we saw in the u. S. And europe. The outlook not looking pretty with new National Lockdowns, accelerating infection rates, a deeper recession than first anticipated. Asia pac index down. Volatility is the issue. Surging days ahead of the president ial election. The csi 300 index down three tons of 1 . The hang seng more than 1 lower. Take a look at currencies. The dollar holding pretty steady after surging on haven demand. The dollar pivoting toward a major breakout with a slump in equities. Eu weakening euro weakening. Here are some of the movers we are tracking. Samsung among them. We have been reporting samsung warned its earnings in the Current Quarter will decline, saying the strong growth in its mobile and memory business will ease amid competition and weakening demand. Yum china reported margins boosted by cost cuts. That stock almost up 1. 6 . Sinopec bounced back from its firstever halfyear loss. Talks to sell its Hong Kong Building as part of efforts to unload assets during difficult times for the real estate sector. Rishaad just a breaking headline. We have been bringing you this bad news about the coronavirus and how it is creating new record cases in europe and the u. S. With the virus upsurges there in the midwest. Tai