Worn surging numbers may undermine a Global Recovery. Plus, we discussed prospects for the u. S. And the wider picture with the atlanta fed president , who joins us this hour. Haidi lets look at the sydney staggered open, the friday session muted compared to the street we have had in asian stocks, asiapacific stocks seeing 13 consecutive days of gains broken by the thursday session, the longest winning streak since 1988 coming to an end. A flat stock a flat start in sydney, kiwi stocks up, muted start in japan spite heavy inflows of foreign buying. We are seeing a further downside when it comes to trading in the futures session. Getting secretary mnuchin speaking at the moment. He is speaking in an interview with Bloomberg News, saying financial conditions are quite strong, that companies that are need grants,covid not that. We heard secretary mnuchin earlier asking the fed to return unused coronavirus money. We will get you more as we get those comments. This is coming at a time when we are seeing increasing warnings about the state of the global economy. The imf and g20 nations warning that surging virus numbers are threatening the recovery. Our Global Economics and policy editor Kathleen Hays is watching this. What did krista lena have to say at the Bloomberg NewEconomy Forum . Concerned about the pickup of new virus cases and restrictions being added again, and what things could do to derail the global economy, the g20 getting ready for its meeting in saudi arabia. To this newsten from steve mnuchin, the treasury secretary, about terminating key emergency lending programs at the fed, it raises a lot of questions. Certainly being watched very closely by the markets. Or broadly though, fiscal stimulus, government health, is one thing the head of the imf is definitely they had of the imf said is definitely necessary. A second wave of infections is slowing down the recovery. It is losing momentum. Our firstntext, message to leaders is, do not withdraw support for the economy prematurity. Stay the course. Shery she spoke to bloomberg at the new Economy Forum after the put out a report. G20 getting ready to meet as we see new restrictions, shutdowns, germany, france, the u. K. , parts of the u. S. , parts of australia. We receivedatement from their message, Global Economic activity picking up, but it looks like the recovery might be losing momentum, and this crisis could be deep. In addition, they say they are using all their tools as long as required to safeguard lives, jobs, incomes, support the Global Economic recovery and make sure the Banking System is healthy and resilient. It is interesting that overnight, as we were getting ready to get these very determined statements, to major Asian Central banks, instead of waiting to see what happened, people said they werent want to cut, they did. Bank of indonesia and another bank, looking at their weakened economies, dealing with two very negative quarters of growth and in indonesia, first negative growth since the Asian Financial crisis. They are not waiting, they are acting and that is what Central Banks are being called upon to do. We are overhearing more from secretary mnuchin, saying he hopes 580 billion in leftover funds will be used to help the economy. Going back to the pursuit of unused funds that he is asking of the feds emergency lending facilities, but we are hearing the central bank pushed back, singles programs continue to serve a vital role. Those measures are still underway as the pandemic goes forward. What sort of questions does this raise about transmission of monetary and fiscal stimulus . Interesting,is because the whole question of emergency spending programs, some of them, the Corporate Bond facility, the fed held were successful because they didnt even have to spend a lot of the money to reassure markets, to bring down Corporate Bond yields, take pressure off these very important markets. The cleveland fed and rob kaplan from the dallas fed spoke today on Bloomberg Television. Rob said he isnt crazy about bond purchases, he would beef up and make lending programs better. Another said Monetary Policy might not be the right tool, looking more fiscal policy. Lets listen to what she said. The virus case increase is very concerning. And the fact that we dont have a fiscal package is very concerning. With the disparate impact of this pandemic, that is where fiscal policy plays a role because fiscal policy can be really targeted to households and Small Businesses that really need the aid. A lot of shery a lot of questions for fed officials being interviewed these days, and i would imagine a lot of people at the Federal Reserve, including the one we just heard from, were convinced today by decision we just got from u. S. Treasury. Haidi Global Economics and policy editor Kathleen Hays p lets get the Karina Mitchell with first word headlines. Karina president elect joe biden reaffirmed he will not impose a National Lockdown despite virus numbers surging. He told a Virtual Meeting of the National Governors association that he has no intention of shutting down the economy, repeatedly saying no shutdown. However, he and governors did discuss Wearing Masks being obligatory. Talks have been suspended in brussels after a member of the e. U. Team tested positive for covid19. The chief e. U. Negotiator broke the news and a tweet and said negotiations would be suspended. The u. K. Side says they remain in close contact on the brexit negotiations. There are reports a deal may come next week. Aviation regulators in asia are preparing to approve the return of the boeing 737 max after the plane one certification in the u. S. Certification in the u. S. South korea is expected to be first. Max has beened grounded worldwide for 20 months. Global news, 24 hours a day, on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Ahead, we are joined by atlanta fed president Rafael Bostic to get his views on the recovery and equality in america. Next, we speak to Cartica Managements Julia Hermann on her strategy and why she think it is time for emerging markets to shine. This is bloomberg. The index fell for the first time in 14 days on thursday, ending the longest winning run since 1988. Investors are considering weighing restrictions because of coronavirus numbers. Joining us now is cartica Senior Analyst and global strategist Julia Hermann, numbers higher, california coming under a curfew for the next few months as we see l. A. County shuttered daily case records, but does that make aspect of asian equities emerging markets look more appealing . Julia thank you for having me. I think regardless of this current covid surge, it is time for the sun to finally shine on emerging markets. We are looking at a synchronized Global Recovery and Global Growth off a low base supported by very ample liquidity, which creates a very strong case for em equities. Shaked outad already prior to the u. S. Election and even prior to the vaccine announcement. So what has changed with Market Sentiment is that we are finally past peak uncertainty. The where risks come in, potential for covid resurgence and certain concerns on the vaccine front. To be vaccine, we know concerned about certain angles like many factoring, storage, distribution, and how to handle future lockdowns like we are seeing now, but the numberone thing in my mind now is that during covid, most governments lost credibility on covid. The ones that gained credibility, including in north asia, were the ones that got it under control without that without a vaccine in the first place. So we need to think about education about the vaccine and adoption of the vaccine it shouldnt be taken granted adoption of the vaccine. It shouldnt be taken for granted, although the vaccines may drive further compliance. What youwant to go to said about the outperformance in north asia, particularly asian ems over the likes of emas. Do you expect this outperformance to continue . Driver,the biggest growth differentials with the u. S. , the downward trajectory of the u. S. Dollar, or a strengthened recovery in china . Julia for the biggest drivers in em, we are looking at the Global Recovery sparking more demand for risky assets, including em. When it comes to north asias relative outperformance, it is clear the Global Environment is going to be much more supportive in 2021. It is that the job of each emerging market to make the most of it. And when the global macro situation was a mess this year, the visioning couldnt be much more top down and country specific. It was about identifying regions best able to handle the tumult, and the best way to look at the world, both then and now, is to ask what does not need a vaccine to do well . On that front, all roads lead back to north asia and the new economy, or tech, visavis other regions. Matter that we continue to see emerging market currencies, especially in northeast asia, surging . These economies are heavily dependent on exports. Export recovery, primarily driven by manufacturing, has certainly been helping north asia, where you can only get so far if demand is suppressed in other parts of the world. That is where the rising tide lifting all boats starts to spur this globe recovery story, further helping north asia. And that currency strength is probably set to continue, because those flows remain favorable lend trade direction remains favorable for those exporting economies. Shery how concerned are you about the that picture across asia . We continue to hear about highprofile defaults, not only in china, but also debt levels and households and south korea are also very high. Buildinge biggest, risk facing the entire Global Community right now is debt and debt sustainability. I dont think we are even beginning to understand the extent of nonperforming asset consolidation and provisioning that will result from the covid era. And that is in part because we are still being redid by a lot a very supportive lending row grams globally, lending programs globally, which will potentially have to rolloff. And there is plenty of economic damage we have yet to see once stimulus measures peter out. Haidi Cartica Management senior Global Policy analyst Julia Hermann. Up, bill gates on how to the past the pandemic, and possibility of a vaccine, a very candid conversation next. This is bloomberg. Hospitalizations across the u. S. For covid 19 are soaring. Daily records reported, states ohioing stricter measures, and california imposing a 10 00 p. M. That overall past 10 00 p. M. Curfew that overall will affect about 50 million people. Bill gates that the u. S. Handling of the pandemic was a mind blowing failure. What is being done at the moment . And not nearly enough at this point is being done. These are relatively modest steps, and are very inconsistent. Measures are of being taken in some of the states that are currently seeing some of the worst outbreaks. What is needed is a coherent ational response, and prolonged effort to change the precautions that people are taking individually, and that states are taken collectively. Because the situation right now is, there is uncontained spread in large swaths of the country heading into a holiday, when people are likely to gather, where there is unfortunately politicizationa of the virus and the response. Especially heading into cold weather, im very concerned, especially if people essentially choose to travel for thanks giving. We are going to see a further acceleration. Hospitals are already becoming crowded and in some places overwhelmed. So it is a very dangerous situation. Shery viewers can see the chart with about 80,000 people in the United States being hospitalized. I have to wonder how much of this is due to the fact that some therapies take a long time to be administered within hospitals. And how much of it is because covid19 has spread so much . The vast majority is because covid19 has spread so much. You are not keeping people in the hospital to have those therapies administered unless they are very ill. And that is especially true because those hospitalizations, they arent neatly spread out across the country. They are often quite concentrated in places where the outbreaks are more severe, where bread zahra where bands are at a premium, where snap is constrained and not available to the extent you would like. There arent very many encouraging things to note. Shery Bloomberg Opinion isen. Nist max n lets hear more comments from bill gates, who said it is mind blowing about how badly the u. S. Handled the pandemic. He told bloomberg editor in chief at the Bloomberg Economic forum that although the u. S. Is behind other entries, it is doing well in one area. U. S. ,n the case of the the only thing they have done well is that they have funded d, not just u. S. Companies, but countries around the world, including european constructs. That was a favor to the world. The rest of it, the u. S. Is at the back of the pack, the diagnostics we did come of the messaging. N today, the messages is the messaging is reaching a new level of incoherence. Onyou can see the numbers the bloomberg tracker, the deaths per million people, america averages 750 deaths, china, the other great participant in the country, is around three deaths for every one million people. One number may be undercounted and one number may be over counted, but by any measure, one country has done much better than the other. Why has the u. S. Been so bad compared to a lot of people . Comparingnt think china to the u. S. Is that helpful, because china has a more authoritarian control over behavior than the u. S. Does. But if you compare the u. S. To south korea, australia, the contrast is every bit as somatic as it is with china, we didnt catch the epidemic at that early stage when the numbers were small, before they get exponentially big. Which a modeling, predicted, that the fall will be very tough. Some people didnt think fault would be tough, but as they looked at the numbers and saw in places like brazil how the austral winter affected infection rates, they saw that. , the next sixs is months in the Northern Hemisphere will be very tough. The good news is that both the vaccines and there are a few ticks, in particular the antibodies, are coming along and will start to bring that way down. But up to that point, presumably we must rely on masks, and testing especially . Bill that is right. The behavior, using tests for people and then if they test positive, you contact trace, and those people make sure they are not infecting other people, the u. S. Still has a long ways to go on that. Although the numbers are so extreme, you do have, finally, more agreement that restaurants, will a number of things have to go during these next five months. Are you surprised up badly america has done . Bill it is mind blowing. We have so many pcr machines per capita than any other country, we have the cdc that has the deep expertise and has practiced how it communicates appropriately to the public. They made stakes early on, then they were completely muzzled. Nobody even knows the names of the people underneath redfield, who would have been the key communicators. And we have this socalled task force. So it is disappointing. We dont get to go back and change that, but we still have a chance to wear masks. One website shows aligned that, if you have good mask wearing, you save now over 100,000 deaths in u. S. Over the next six months. Speaking withtes bloomberg editor in chief john thwait at the Bloomberg New economy form. You will see highlights from the bill burck new Economy Forum forumoomberg new economy this week on bloomberg. Headlines, digital demand slowed from the june quarter, 53 slowed. Onlines upgraded its service. A Cybersecurity Firm has announced a 400 strategic investment. Blackstone will purchase newly designed convertible shares. Play, fireeyey in announcing a deal worth 186 million. Coming up next, local economics and policy editor Kathleen Hays will be with us with a big asked. Kathleen the timing couldnt be better. I will be joined by atlanta fed president Raphael Bostic. He will discuss his views on the economy, and the need for more stimulus, and the issue of inequality in the American Economy and financial system. What he is doing to change it. President bostic put out a landmark essay where he said ending racism in the u. S. Is not just a moral imperative, it is an economic imperative. He has been leading research at the atlanta fed about what needs to be done. That interview is next. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting 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