Transcripts For BLOOMBERG Bloomberg Markets Asia 20240711

Worked so much in the first couple of quarters. We are also expecting our investment ipo tomorrow. It is a very, very busy year for us, all in all. You are looking at health care opportunities. Everybody else seems to be doing that. That is why valuations have skyrocketed. What are you finding and what are you concentrating on within that space in particular . Nisa it is interesting. Board. St across the is, is really interesting when we invested in the first company, the first Vaccine Company to list in hong kong. One of our Companies Went out in hong kong, the first device company. Venus, thepo of whole medical device sector has become hot this year. Seen 25 areas we have Companies Getting funded in china alone. I am not sure about the competition. On the discovery side there is also excitement. Because valuation has grown so much, we would still stay away from very expensive deals. Historically, we have been investing 75 at least. Systematically we have been doing the same thing as well this year, really stepping up companies. We have also participated in deals and spending across these different sectors. Lastis interesting is, time we talked, we talked about how so Many Companies are involved in the treatment of covid. Of our companies have been involved with combating side, be it on the device the drug side. We also have a couple companies that developed antibodies similar to regeneron for treatment. Rishaad please stick around with us. We are getting over to this virtual apec summit. President xi is speaking. I believe we could drop in and have a look at what he is saying. Now, buty we have him unfortunately, we do not have a translator. I suppose we can get it back to nisa, while we sort that out. How much is the government helping you with regards to where you are investing . They have all sorts of goals with regards to targets and making the economy in china a hightech one, ultimately. Give us the view of policies in place and policies you would like to see. I think the government has put in a lot of effort in giving government grants to quite a few of our companies. Think the policies are important. Many policy changes to encourage innovation in tech. It allows companies to raise more money through listing. Of course the Hong Kong Exchange as well. All those are very good signs for the Chinese Companies. The other thing, the Chinese Market is a big one for pharmaceuticals, the second largest in the world now. It could become the largest. What we are seeing is juliette sorry, it is juliette in singapore. Wanted to get back to that and the huge market in china and what you were talking about with the vaccine. Is china leading the race one day in this health care race . And on the vaccine, when do you see a larger distribution, could it be 2021 . Nisa i think the codevelopment and cocollaboration between china and the u. S. Is important in biotech and health care. We are seeing a bit of that going on. It would only benefit humanity. , we it comes to vaccines see the sacks we see the success of pfizer and moderna. Our vaccine is similar to the others. Hopeful, but we will wait for the result to come out. In the meantime, companies in china are effectively building manufacturing capacity to meet the demand. Talk about other companies you like in the health care space. We have a chart for viewers showing the Health Care Sector perform. Therapies and treatments coming through. What other Health Care Companies are you looking at . Nisa we have had eight health already, some ipo at 10 billion market cap. 75 billion. Round 1 we are expecting another 25 Health Care Ipos coming to the market in our portfolio in the next 24 months. Unique model for incubating and a program from china. We have another Company Called new horizons. Similar to the exact science, the first to list in hong kong. Company, using dna testing to replace colonoscopy as a screening test. They also just received the first Cancer Screening approval in china ever. We are also affecting other companies. In hong kong as well as in asia. Nisaad thank you so much, at the Bloomberg New economy forum. We have the apec summit going on at the same time as our own forum. We have xi jinping speaking, talking about meeting challenges through cooperation as the only way forward, and a need to step up policy coordination. He is addressing that apec summit by video. China will expand domestic demand as a strategic priority. This perhaps dovetails into his policy of circulation, reliance on what is going on domestically, but not forgetting the outside world and having relationships, trade relationships with countries. Jules . Juliette lets get the first word news. We are seeing coronavirus deaths in the u. S. Topping a quarter of a million. Rising infections forcing new york city to close schools and return to remote teaching. U. S. Regulators have given the goahead for the first covid test at home kit. Result system costs around 50 and will need a prescription. South australia in covid lockdown. The restrictions came into force at midnight local with all stores, restaurants and nonessential shops closed. Local people are not allowed to leave home to take exercise. Regional travel for weddings and funerals are off. It is compulsory with authority saying they must stay ahead of the game. We are going hard and early. Time is of the essence and we must act quickly and decisively. We cannot wait to see how bad this becomes. We must act quickly and decisively on the Health Advice to stay ahead of the game. Juliette the European Union warning against permit her brexit optimism saying substantial work is needed ahead. There remain several important issues to be resolved ahead of any potential agreement. Sources say u. K. And canada are close to a new trade deal, replacing the one britain has through the e. U. An announcement could come within days. The International Olympics Committee Planning a more lowkey event next year. Athletes will be encouraged to leave once their event has finished and latenight parties are banned. They announced widespread covid19 testing at the games, encouraging athletes to take any new vaccine. That is first word news. Rishaad lets get to apac leaders speaking at the friday summit. We have a chinese president xi jinping speaking at the moment, about implementation and Development Strategies saying china will further implement in science and technology. And, supply side reform as they expand domestic demand. It has been a strategic priority. Anymore headlines, we will bring them to you. We are hearing from the chief of unilever, he talks about what a Biden White House would mean for Climate Change. This is bloomberg. Live pictures, a virtual apac conference taking place, hosted by malaysia. President xi jinping is speaking at the moment, with a wideranging discourse, saying china will upgrade industrial chains and improve competition by strengthening property and intellectual property rights. Saying they will not seek decoupling or exclusive policy. An emphasis because his dual circulation policy on what is happening domestically. He says they want to deepen reform and energize the market and continue with they are supplyside reform, saying they will have further innovation in science and technology and innovation driven strategies. China willone is, have greater demand for local products and services. It will be engaging with the outside world while putting a strategic priority on what is happening domestically. Juliette . Talktte lets switch and to the unilever Ceo Alan Jope saying, Interest Rates to create new jobs means it is a good time to invest in sustainable green technologies. He spoke to bloombergs Francine Lacqua about breaking the mindset that there is a division between Green Technology and prosperity. Francine purpose and prosperity, there is no tradeoff. We are already seeing that money that gets invested in green stimulus seems to generate better roi than the more broad stimulus packages. It is the most important mindset to break, that there is a tradeoff between a Green Recovery and economic prosperity. Francine a lot of companies have already put out targets. How much will that trend be easier under a new president , joe biden . Change, like this all system changes, will require collaboration between governments, companies and investors. Policies,ents set the the frameworks in which we operate, i would like to congratulate the british chancellor who recently set out the requirement for carbon disclosure and reporting. Companies have to drive the innovation that will be needed for a Green Recovery. Of course markets and investors need to invest in properly run, sustainable and green businesses. , anhat regard administration that reenters the Climate Change debate and Green Recovery, of course it will be good for the system. Of these unless some disclosures, carbon emissions, things like that, are disclosed and mandatory across the world, would it make enough difference to make a meaningful impact against Climate Change . I think the things government has to do are important. Disclosure is an important part of it, but can have unintended consequences. The most important thing the government needs to do is get a price on carbon. On carbon or a cap a tax, there is a role for disclosure and labeling. The most important step the government can take is to get a trace on carbon. Francine how much work do you do at you know lover for technologies to make products for packaging or containers that are recyclable . Technologies the for a Green Recovery have already been invented. Low carbon energy, i am hearing from scotland where 90 of scotlands energy comes from renewable technologies, wind. They have low carbon transport. All of that exists. Now is a good time to invest with low Interest Rates and a desperate need for more jobs. Rishaad that is the unilever chief executive alan jope speaking to Francine Lacqua. Lets get to apac again because president xi jinping has been goaking, saying we will not against historical trends, decoupling or forming a small circle to keep others out, saying china is committed to opening up and this will not change. The Company Wants to increase the import of quality goods and services. To that end, china will be further cutting tariffs because china will have a greater demand for Global Products and services. That is what we have coming through from his speech. There. Leave that to amy xietalking patrick about the state of the markets and a look at how singapore is dealing with covid19, with the head of their task force. This is bloomberg. Rishaad just a few points to note coming out of xi jinpings speech at the virtual apec summit. He is talking about china deepening cooperation on Green Development and repeating the out theret putting multilateral credentials on the table, to continue supporting multilateral trade mechanisms and negotiating and free trade. We had a deal signed earlier this week. That is just one of many at the moment. China is committed to opening up, saying that will not change. They will be cutting tariffs further as well. Juliette . Setette the boeing 737 max to fly again after being cleared for safety by u. S. Regulators. It will end a 20 month grounding following crashes. It is welcome news for boeing and carriers, but regulators in europe and china have not yet lifted their band. Our asia transport reporter has been following the story for us and joins us from singapore. When could we see the plane back in the sky . It will depend on what you said earlier, regulators in Different Countries. Now with the faa approving the u. S. We could see december, with American Airlines being the first to operate the plane. For the rest of the world, we have to see what regulators say in those countries. Rishaad will boeing be able to get back on its feet again following this decision by the faa . Khunghee it will be a long road ahead for boeing, given they are still involved in investigations by the justice department. To finehas threatened boeing. In the u. S. Has opened investigations. At the same time, we are going through a tough period, due to the pandemic. It is one step forward, but does not mean things will clear up for boeing anytime soon. Other challenges does boeing face . Khunghee i think the Biggest Challenges what other regulators in other countries decide and when they decide to allow the 737 to fly again. Even before this, a lot of people were worried about flying the max, due to safety concerns. That will be another challenge, not just for boeing, but airlines, in how they help convince customers it is safe to fly the max again. Thank you so much. Lets take a quick look at business flash headlines. Security saying it will cooperate with the probe from chinas watchdog, all because of allegations of market manipulation. Securities was the millionter for the 150 bond, which they had failed to pay. Posting a 57 jump on the year before. Results blew past estimates. Behind it, demand for video games. The Current Quarter beat with nvidia expecting levels at the same level. The stock is up 100 20 this year. Apple reached a deal with 33 states and the district of columbia over allegations it misled users over Battery Power and software that slowed performance. Million after13 being accused of equipping iphones or batteries that lost power and shut down, and then updates that curb performance to avoid the shutdown. Lets do a quick check of market action. Asia, luckyains in 13 has come to an end. Sciittle retreat on the m asian index. Coming off those 1991 highs. We are closely watching what is happening in the philippines and indonesia ahead of centralbank action. The rupiah and peso could come under stress, due to the lingering prospect of rate cuts. We have also been hearing from president xi jinping, speaking summit,irtual apec pledging china will not engage in decoupling. Justis in kuala lumpur, days after their largest freetrade agreement. Plenty more. This is bloomberg. Are you frustrated with your weight and health . 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Welcome to Bloomberg Markets asia. Rishaad i am right here in hong kong. Xi jinping promising for the revving up of chinas economy, telling the apec summit his country will seek further fee free trade deals and never engage in decoupling. Juliette asian markets face the end of their longest winning streak since 1988, as virus curbs overshadow optimism. Stocks had risen for 13 straight sessions. Haad chinese online gamer shares down in the past week but up 50 in 12 months. The vaccinelot of optimism has been propelling asian markets for 13 sessions. Then you had a little worried coming into markets with new york schools being shut. The asiapacific index following that downward momentum, snapping that very long winning streak and coming off the highs we have seen since january of 1988. The dollar index cutting a little bit of a bid in asian trading. It felt to april 2018 lows on the vaccine optimism. We are watching the chinese yuan , fairly steady against the dollar. Hsbcs new chief says the yuan is a g10 currencies. It is actively traded and has strong influence. Bitcoin just below 18,000. We saw that level during wednesday. A a lot of money coming back into bitcoin. We have not seen these levels since 2017. Wider institutional acceptance for the cryptocurrency. Rishaad straight to the market open in bangkok. Thai stocks at the moment are moving up, bucking the regional trend. Thailand leaving rates on hold with one eye on the thai, which has been strengthening to tenmonth lows. Weakened a bit today. Thailands parliament rejecting a constitutional amendment to reduce the power of the monarchy. India, prospects looking a bit decidedly negative. Off about 1 . That would mean the nifty would fall off of record highs along with the sense ask. First were nude headlines. Reported virus deaths in the u. S. Topping 250,000. Rising infections forcing new york city to close schools and return to remote teaching. U. S. Regulators have given the goahead for the first covid at home testing kit. Nationwide capabilities are struggling. It cost around 50 and users will need a doctors prescription. Analysis ofa final Clinical Trial data shows that its vaccine is 95 effective. It paves the way for the company to apply this week for the first u. S. Approval for a coronavirus shot. Biontech says there vaccine protected people of all ages and ethnicities with no significant safety problem so far, in what has been a trial that included almost 44,000 participants. Our goal is to supply up to 50 million doses in 2020, which europe and the United States. Is 3 billion goal doses. South australia is in virus lockdown with the toughest curbs yet to tackle rising infections. Restrictions coming into force at midnight local time with all schools and not essential shops closed. People are not allowed to leave home to take exercise and regional travel, weddings and funerals are off. Authorities say they must stay ahead of the game there. Canadian Prime Minister Justin Trudeau is being told to make up his mind up about using or banning huawei in their 5g rollout. Lawmakers have given him 30 days to make a decision and to come up with a strategy to combat chinas intimidation of canadian citizens. The nonbinding motion was passed with the support of some of judos own liberal party members. That was a look at the first word news. Juliette chinese president xi jinping has again made the case for multilateral cooperation as he just the virtual apec summit. Xi said meeting challenges through cooperation is the only way forward, and vowed china would not decouple from the u. S. And the global economy. Tom mackenzie has been following the speech. What else stands out . Tom it was a message of reassurance, it was a message of cooperation from chinas president. And also read a ration also reiteration of common themes we have had from him and other chinese officials the last few months. He reiterated that china was committed to opening up. He said that this would not change. He also said we should expect that china will cut tariffs further. He said there would be greater demand in china for Global Products and global services. That the importance of both of those things will increase. He said that china will work to improve mechanisms for fair competition in the mainland, and that the country will continue to deepen reform and energize the market. He said the country would also upgrade industrial change and further innovate in science and technology. Drawing on some themes we saw outlined in the first work at the fiveyear plan earlier this month. And that is potentially targeted at the concerns that have bubbled up from some overseas about this dual circulation policy and strategy, while stressing the need for Foreign Direct Investment in china, also places emphasis on building out a domestic economy less reliant on exports. So a message of reassurance and cooperation from chinas leader. It is ofand also tom, course a regional summit, it is a peck. What did he say about trade in the region . Was there any kind of message, in your view, directed towards the future new administration in the United States . Tom of course we heard from president xi after the signing of the regional copperheads of an Economic Policy trade strategy that was signed by 15 nations on sunday. Reemphasized the need for further integration. He said there should be closer Regional Economic integration. Of course many see it as being driven by china, or at least a win for china given its oversized economic influence in this part of the world and within that trading packed. He also said china would continue to resume and negotiate a freetrade deal with countries in the region, and that china would not pursue a policy of decoupling. But you are absolutely right to point out the speech is not in isolation from everything that is happening in the u. S. And of course the incoming Biden Administration. This is potentially a challenge to that administration. How do they negotiate trading deals with countries and is part of the world when china is making it clear it wants to see greater integration, and it is the largest economy in this region by far, so it will play a centralized role in that. How the Biden Administration response to that will be crucial, but more importantly in the near term is how President Trump response, if indeed he also makes a speech at the apec summit. That has not been confirmed, but two years ago when the Vice President mike pence gave a speech after xi jinpings speech, that led to some barbs between both sides and the apec summit was not able to finish with a joint communique. We will see what happens this time around. Rishaad Tom Mackenzie in beijing. Watch that space. Still ahead,we are going to be hearing from the cohead of singapores covid19 task force as they prepare for a travel bubble. Also we will be asking lawrence want how singapore aims to supply its vaccine. Juliette next, we get the Market Outlook from the sydney bank fund manager. Find out why the Portfolio Manager is betting on emerging markets, next. This is bloomberg. Rishaad asian Equities Trading lower this morning. Coronavirus curbs around the world overshadowing progress towards a vaccine. The prospect of a softer dollar has been helping drive up demand for assets. Bonds shifting into core emergingmarket. Ets bring in amy she patrick welcome to the program. Nice of you to join us. More and more people getting interested in the emerging markets side of things . Amy thank you for having me. That is a great question. Sitting here in a country where large parts of emerging markets are. [indiscernible] appetite has grown because it has had to, because rates everywhere are so low. Search for yields continues unabated. [indiscernible] more and more investors in australia are seeing the correlation are now turning a more positive mind to the emerging markets for that extra yield. Similarities to their own economy. For theleveraging off the decade because of emerging markets as well. Markets arerging not onesizefitsall. At the moment what are people gravitating towards . Instance, andrst especially because we have had this kneejerk reaction, in the first instance [indiscernible] the high yield in emergingmarket is what is driving the recent rally you had. But going forward, you have to be cognizant that like all economies, emerging markets and Central Banks have had to slash rates in Emergency Response to covid. [indiscernible] however, emerging markets do suffer inflation. [indiscernible] ultimately you want to avoid an economy that are able to open fully because of a vaccine [indiscernible] you are facing very low real yields, which are a poor representation of return. Quickly adding to that thought, can we ask you the bloomberg question of the day, which is how far can e. M. Assets now outperform their dm peers . Amy by far, i think. Not just thinking about emerging markets as a risky asset class, but thinking about emerging market fixed income in the local markets. When you compare highquality emerging market Interest Rate risk compared to negative yielding Interest Rates you can get from core markets in europe and japan, what you are seeing, especially in more recent down cycles, is that the high quality emerging markets not only are carrying, but better protections of economic distress. Whereas being invested in the old bond markets, such as in germany or the rise of core europe, they do not give you that incentive. Emerging markets are both on the risky side, but also its worth considering broadening out of your base pro folio portfolio. We want to quickly focus on the yuan. It isw head of fx saying a g10 currency. What further strength do we see here . I think he is spot on. You are seeing more and more dollar china leading the way. You were talking earlier about the recent trade agreement signed within the asia region. Valley to open up more and liberalize more. Very least i think the chinese currency should be taken more seriously as a currency lsot will continue to a reserve managing [indiscernible] all right. Amy xie patrick, thank you so much for joining us. Pfizer racing to the finish line with its covid19 vaccine. We hear from the ceo of its partner about how confident they are about safety. This is bloomberg. Rishaad you are back with Bloomberg Markets. All week we are bringing you some big conversations from speakers from the Bloomberg Forum about life after the coronavirus pandemic. Blackrock chairman spoke about the need for u. S. Stimulus and what the u. S. Election results will mean for markets. I would say overall, the market likes a divided government. They want to make sure there are proper checks and balances. We have seen in the past when we have a government that is totally controlled by one party, we have actually seen more positionsn terms of they have made. So i think, a, divided government, but i also do believe strongly that the market is in desire of more stability, of less volatility. They are looking for a voice that moderates, not a voice that excites. I truly believe president elect biden can be that voice of reason. He can, and if we all listened to his speech last saturday where he was talking about one america, not a red or a blue. So i think the marketplace is encouraged by having a leader now that is more inclusive, a leader that can probably bring more global harmony. I think we are tired of the volume we hear out of washington. And we are worried about where we are going right now and in these coming weeks. And so, were looking for a new leader to help us navigate covid, and moving forward we are looking for a leader who has a stronger opinion on climate and is willing to work with the world on moving it forward, both in climate and all other global issues that are facing our world today. I believe markets are assuming a stimulus bill of at least 1 trillion will pass in the lameduck, then maybe another stimulus bill will happen early in the administration. If that happened, with the markets take a bad reaction to that . I would take a very bad reaction. The markets, lets see, but probably. But we as an economy, and most developed economies are overreliance on monetary policy. Because of monetary policy, we have seen great support for the Capital Markets and we have all been benefiting from that. If we want to create a more economic economy, we have to do more fiscal stimulus. If we just rely on monetary policy, that is creating more and more income inequality. Those who own Financial Assets are generally wealthy people. The poor do not own Financial Assets. So the divide because of the strength of the equity markets and the job losses that we have witnessed has really created even more of an income inequality. Now, i am fully supportive of monetary policy, so lets be clear. I believe what jay powell and the Federal Reserve has done has been nothing but amazing. But if we are going to try to really rebuild our economy, we truly need a very targeted fiscal stimulus for those who are still unemployed. We need to do a fiscal stimulus for those cities most impacted. And i do believe a targeted fiscal stimulus will be in order to really begin a more equalized economy, and that will be essential for the Biden Administration. If we do have a stimulus bill that is significant, that will increase the debt. It is already 27 trillion, and the annual deficit is about 3. 2 trillion, in terms of money we are borrowing right now. So how can we afford this, and where the markets not worried about this enormous amount of debt and annual deficit . I would say we should worry about it, but it is not a major issue today. We are not witnessing inflation. If anything, you can see from the private equity side, we see this from the full alternatives and liquid markets, that there is actually shortages of high Quality Investments right now. Say the markets are correct in not worrying about the deficits today. What we do need is through stimulus, we need to get growth going. And as we get growth, then this deficit, it will probably be north of 30 trillion. The deficits will have less impact than what we have in a broader, larger economy. If we cannot find a way to create growth in the coming five years, then we are going to face the impact of this rising deficit. At the same time in the next five to 10 years, we are seeing an aging global population, especially from japan and china. They are going to go from savers to spenders as their population becomes older and they are retiring and they are going to be utilizing that for living in retirement. This will be a problem if we do not find growth. Juliette that was larry fink speaking at the new economy form. Lets get a check of the first word news. China says it is confident about the state of the economy despite surging virus numbers and a looming global recession. The mainland economy will likely grow this year, despite great difficulties, and will probably surpass 15 trillion. He has told the peoples daily china has shifted from a state of rapid growth to one of high quality develop. Australia added tens of thousands of jobs in october, as victorias Strict Lockdown rick did lifted and recovery gather pace. Employment soared by 178,000, way above the expected decline of 27,000. The jobless rate edged up slightly to 7 as the Participation Rate also group. Employment in victoria alone was up 2. 5 . Tengion is rising among Oil Producers with the uae privately floating the idea of leaving opecplus. Officials have not given any public details over its plans but tension has been rising between abu dhabi and saudi arabia for weeks after the uae raised production levels above its opecplus quota. Any tracks in the alliance could undermine the already fragile market. Lawmakers in thailand have rejected demands by prodemocracy groups to curb the power of the monarchy, voting instead for a committee to rewrite constitutional passages that do not involve the king. Protesters say they will now step up mass rallies in support of their demands, which include royal changes and the resignation of the Prime Minister, who has so far refused to go. And that was a look at the first word news. Rishaad lets have a look at china markets as we head towards the lunch break in shenzhen and shanghai. Following the regional trend, it has not been turned around. Shanghai composite about the gain line. Chinext price index,. 5 higher as well. All against this backdrop of asian stocks which have been ending their longest winning streak since 1998. A a lot of concerns about the pandemic and how that is at the moment causing more shutdowns around the world. Looking also at president xi jinping. He was talking to a virtual apec summit, pledging china would not engage in decoupling. Just days after the region inaugurated the worlds pigs free trade agreement. , talkingng by video about essentially how china will continue to open up and engage with the rest of the world. This is bloomberg. [narrator] this is kate. Hey. [narrator] she takes two prescriptions. Kates son jack, takes one too. Kate works hard, and thought she had good insurance. But she still pays too much. Thats no good. So kate downloaded the goodrx app. Now she can compare prescription prices, to find the best discounts. She even beats her insurance price. Good for you kate, good for you. Goodrx, stop paying too much for your prescriptions. Download the free app today. Adapting. Innovating. Lsetting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. 28 degrees in mumbai as we are getting set up for another trading day with equity markets currently at record highs but not looking as though we will be seeing that repeated today given the nifty futures trading in singapore showing declines of around 1 at the moment. Of course we are looking at live images coming through from mumbai. Lets have a look at one bit of good news. Saying theirontech vaccine is 95 effective in Clinical Trials. The shot staved office of your cases and worked in older people as well. Says he ish ceo confident regulators will review the vaccine quickly. We know that we plan to submit our documents at the latest on friday to the fda. We are already in submission. European regulars. So this is an ongoing process. Congratulations. This is obviously great news for everyone. We want as many vaccines as possible. How do we know if the vaccine prevents asymptomatic transmission . We do not have that information yet. We have the information about how well the vaccine prevents disease. But we have indicators the vaccine should be able to prevent infection, since one of the components of the immune system that we are activating the vaccine is the neutralizing antibodies. We know that our vaccine induces some neutralizing antibodies. Antibody responses. Models, this could prevent infection. We are going to collect indirect data showing how well the prevention of infection is, but this will require a few months. Are you going to get a t cell response . Is there going to be a longterm effect here . Because the antibody response obviously fades. But will there be a t cell response . Will the body have longterm memory of how to deal with this virus . Yes, we have created evidence for that. We have analyzed the t cells from subjects, from volunteers who have been vaccinated, before and after vaccination. And what we observed is that after about already four weeks, the vaccinated people have really strong t cell responses. And we see two types of t cell responses. [indiscernible] this is an extremely important, important finding. The finding shows us that the t cell response we are observing is even higher than the t cell response that is observed after disease. And we know from other virus infections that the t cells can last for many, many years. So we now have one component of the immune system which is a better stability than the antibody response. A comparativee me study between all the vaccines we are going to need, particularly can you help me understand where you are in that process . Are Clinical Trials is just for our vaccine, but we have our protocol very close to the Clinical Trial protocols that were used. For example, operation warp speed. There will be an indirect way to compare the Clinical Trials performed by different companies. This could give you a good understanding of the safety profile of each individual vaccine. We have already published are t cell and antibody response data. So there is a lot of information already available. Juliette that was the beyond tech ceo. What are singapores chances of developing a suitable vaccine . Lets discuss that would lawrence wong, cochair singapores task force. Where is singapore at on the vaccine front, and how will it be prioritizing who gets the vaccine first . Lawrence hi. We have been monitoring the develop of the vaccine very closely and we are quite confident that there will be a few promising candidates that will make the cut and vaccines will be available as soon as sometime next year. So we are entering into supply agreements with several vaccine companies. This is on top of what we will be getting through our participation in the global facility. If and when vaccines are approved by regulators around the world, we will make sure that they are available for use in singapore as well. Otherte just to my point, who will get the vaccine first . Lawrence we have set up a Scientific Committee to help us prioritize. We do expect the vaccines to come in batches. So not everyone will have access to them right away. We have put in place a process to help us prioritize who should get them first. For example, we think it should be the medical personnel, the front line workers, the critical frontline workers, vulnerable groups including the elderly and Underlying Health problems. But the Scientific Expert Committee will help us put out recommendations. Blackrocks larry fink says there is global fatigue about living with covid19. In singapore the research have been very strict. When do we get to phase 3 . The restrictions have been very strict. When do we get to phase 3 . Lawrence everyone has been asking me this question. It could be the end of the year, it could be early next year. But when the conditions are right we will let everyone know when we will be in phase 3. Is phase 3 ising not a freeforall. Tose 3 is not going back precovid status. We will be in phase 3 for quite a while, because phase 3 will last until an effective vaccine or treatment is widely available. So even though we expect early deliveries of some of these vaccines coming into the market, the distribution of a vaccine to everyone will take some time. So we may very well be in phase 3 for a year or longer, which means that we really need to stay vigilant and disciplined and continue to cooperate with all the prevailing measures including the wearing of masks. And basic, simple rules and precautions like avoiding large crowds. It is easy to get carried away with a vaccine, and it is wonderful news, we look forward to them. But lets not snip at the small stuff. The basic simple percussions do work, and we should all continue with them. Minister, what is phase 3 exactly for people here in hong kong . We do not know what that means. And elsewhere, probably too. Will a normal after covid also require restrictions in case of a reappearance of a different pathogen . Lawrence well, thanks for the question, rishaad. We embarked on a threephase reopening plant after the covid breakout lockdown in may. So we are in phase two now. Phase 3 at some point maybe later on. Phase 3 simply means we will be able to meet in a slightly larger group of eight persons. There will still be the need to wear a mask, there will still be the need to contain large gatherings. So we think in terms of crowd as multiple groups of five. At the same time, we want to see more testing in place, and we want to ensure as many people as possible within the population participates in our trays together program, our Contact Tracing program which enables us to very quickly identify close contacts and contain any clusters from breaking out. So that is largely what phase 3 will be, and like i said we expect phase 3 to last quite some time until a vaccine or treatment is widely available. Weve talkedster, about travel bubbles, of course this one starting off in a few days between hong kong and singapore. Theres also people touting an asian travel bubble. Is that feasible given the unevenness of the disease and its penetration in those Different Countries . Lawrence the key idea about a travel bubble is to identify countries with similarly low levels of incidents. And theres confidence between these two countries about prevailing rates of infection and control measures are in place, then the two countries or more can come together, open up, and allow for free travel without any quarantine. But subject to a free departure chest. So that arrangement we have in place with hong kong, we welcome other countries to join the bubble, and we hope that what we are doing with hong kong can set an example for other bubbles to form elsewhere in the region. But the key is that the countries must meet the conditions. Travel bubbles will only be formed among countries where there is a lower level of incidents, and control measures are in place. Allette minister, we are hoping this travel bubble was well and paves the way for further once. But what happens if we see a spike in unlinked cases in either singapore or hong kong . Lawrence well, we have contingency plans with our hong kong counterparts. There are various things we can do. We can slow things down in terms of the number of travelers in order to reduce the risk. If the number of unlinked cases rise beyond a certain threshold, we can temporarily suspend the travel bubble. So these plans are in place already. Juliette all right. What about some of the other thoughts of travel cruises to know where, that kind of thing to get the economy kicking along . Lawrence we have started these as well. Singapore ish taking is we want to open up. Because this is existential. There are some countries like singapore, they have succeeded at keeping the infection rates low. Keeping their border measures quite tight. And they can afford to because these are large economies with sufficient domestic demand. Singapore does not have that luxury. We cannot afford to live in splendid isolation from the rest of the world, because we are so small. We have to plug into the world, not just for the economy, but for our social and community needs. So we are looking at ways to open up gradually, which will include cruises, which we have started. Protocols,ery strict social distancing measures on the ships. These have started and so far they have proceeded well. So we will continue with this approach. We are open for business, but we want to make sure sufficient safeguards are in place to allow us to open up safely. Quickly,minister, very one of the things the pandemic in singapore highlighted was the plight of Migrant Workers. What are you doing to address some of the awful conditions they live in, which essentially allowed the coronavirus to breed and to spread . Lawrence we have put in place plans already, and these are underway. Buildingalked about additional dormitories with different kinds of conditions. And even within the existing dormitories, we have reduced the number of workers in the room. We have ensured new safety measures. The point is that in any setting, it does not have to be a Migrant Worker dormitory, it could be a student hostile, it could be a cruise ship. In any setting where there is communal living and close proximity amongst people, we hav e now learned that its very easy for the virus to spread quickly. Of theses why in all settings, whether it is a dormitory, a cruise ship, student hostels, we are putting in place new precautions. And they are working up to now, so far. Rishaad minister, thank you very much. Lawrence wong there. Oft, the chief executive southeast asias largest bank is all for increased regulatory scrutiny. Next. L hear from dbs, this is bloomberg. Just started the session in mumbai. Lets have a look at what is down as we come off record highs for the sin tech and the nifty moving down. Thanks at the moment responsible for much of the drawdown. Against this backdrop we have the reserve bank pumping more cash into the credit market. It has been improving the health of shadow lenders and perhaps assuaging some concerns about their revival prospects. Average spread on aaa lenders falling by the most in four months in october. A bit of support coming from shadow lenders but no support for the actual banks themselves. Nifty banking index down nearly 1 . Juliette speaking with the banking theme, singapores biggest banks have remained resilient, beating estimates in the latest quarter. From the sidelines of the new economy forum, bloomberg spoke exclusively to the ceo of southeast asias biggest bank ps group to about his china strategy and whether he supports increased regulations. We are very bullish on trying to grow in the big countries in the region. Is ahead. Ubt china [indiscernible] place at side markets hong kong and the Chinese Capital market is nascent. So we think there is an opportunity to build out that. But that is not all. We are focusing on building our presence in the greater bay area. It has been Good Business for us. Momentum is good. We are deeply integrated to the supply chains. We are looking at expanding in the finance space. Stake. A small we are looking at seeing how we can scale up that business as well put outside of that, working with Chinese Companies as they expand seems to be the mainstay of our chinese challenge. I wanted to ask you about your views on regulatory dressing down, the pushback of the ipo, the changing regulatory landscape in asia. What are your thoughts on this . Does it make you want to be more conservative when it comes to tying up the fintech related space particularly in china, but also with a digital push in singapore as well . Piyush not at all. To me, the fact that over time you will get a more level playing field, therefore getting proportionate to all participants in the market. Whether they are Technology Companies or banks. Its welcome. Our view has been many Technology Companies have been able to benefit from not having the same regulatory overhead that banks do. Stage, itet to this is awful for us. It is also it is helpful for us. Competitive pricing has allowed monopolistic positions. I think it is too much risk. The possibility of financial instability. To makee, we are trying sure that you do not wind up in a situation which encourages monopolistic outcomes. It is a good thing. We are seeing adaptation and change as being necessary in the workforce as well. You announced you would let employees work remotely up to 40 of the time, including a job sharing scheme as well. My question then goes to office space. Do you need all that office space . Do you vision needing to keep that physical presence . Piyush i think the office space of the future will be somewhat different. And i think the footprint will be smaller. Will get people to come to office for a large extent to do collaboration work and celebration. You will have more open spaces, etc. We will also have more distributed office presence. We will beef up our presence in outlying areas, even using around our own brand footprint. But i would imagine over the next five to seven years, overall realistic footprint will be smaller than it is now. Juliette that was the ceo of southeast asias biggest bank, piyush gupta. We are seeing dbs shares around. 7 . It is a downbeat market across asia. Singapore off by about. 4 . Plenty more ahead. This is bloomberg. Ok. Aad taking you to that virtual apec summit being hosted by malaysia. That is president jacoby speaking and addressing that apec summit, as the indonesian president talking about regional cooperation, talking about corruption, and the wish to eradicate corruption by means of electronic permit systems, which he is talking about currently. They have an omnibus law which will have a Significant Impact on investment as the country craves more of that. South africas president has reiterated his commitment to reigning in the countrys skyrocketing debt. 2026. Gdp by the president spoke to bloomberg about how he plans on getting that number down. Investments have been going down in relation to our gdp. Arrivedhe reasons why i at the beginning of my tenure as president focused on investment was to try to correct this. And we are in the process of doing so. Ofset ourselves a goal ouracting 100 billion into economy in five years. Were already more than halfway there. Commitments are being made by a company, and many of these companies are being actualized. An trusting investment is in effort to increase investment visavis our gdp. I think we can turn things around quite significantly. But it also means that the its variousr and entities also needs to demonstrate its own confidence in the economy of our country. Investmentsector taper down, and now we want to boost that, and through an infrastructure play and restructuring our state owned enterprises, we will be able to do so. And we will also see the private sector invest more and more. How confident are you that th africa can and void this is a risk the finance minister highlighted. Upon ourselvesn to draw a line in the debt sand, and decided we are now going to arrest the debt level, bring them down quite significantly over the next four years. We want to see our brett be brought down our debt be brought down. We are spending way too much money. In some cases much more than what we pay for education. And that cannot be. Weve got to bring down our debt level and make it much more manageable. And we are embarking on a variety of schemes. Stopping wastage, stopping corruption. With all those measures we are putting in place, i am certain that we will be able to bring our debt levels down, and avoid what you could call a debt crisis. Because we are focused. Weve opened it up by telling the nation we have too much debt, and a country that needs to grow, needs to reduce its debt. Through that, we want to be able to generate more debt. Throughnd, its investment that you get growth. You are thenowth, able to collect more revenue through taxes and you are to reduce debt. Juliette that was the south african president speaking with one of our bloomberg colleagues. Lets check in on what we are seeing in market action, because we are seeing a bit of a retreat after 13 sessions of gains in the asiapacific index. You can see malaysia one of the weakest performers. Hong kong hang seng going down, off by about. 7 . The nikkei continuing to retreat from those 1991 highs. That is it for Bloomberg Markets. Daybreak middle east next. Oil slips from to monetize. Emily im emily chang in san francisco, and this is bloomberg technology. Coming up in the next hour, apple cuts fees by App Store Half for Smaller Developers making up the 1 million in revenue a year. But vocal critics like leaders of spotify and epic games say it is still not enough. Plus, President Trump fires the nations top cyber chief via twitter, of course. Is the security of america at risk