Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240711

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 New Economy 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 solutions. And thats what we deliver. So bounce forward, with comcast business. Welcome back to bloomberg daybreak asia, im Kathleen Hays in new york. We want to welcome bauer viewers and radio listeners from all over the world to join a conversation with the president of the Federal Reserve bank of atlanta, Raphael Bostic. Great to see you again, even though it is virtual. We have a lot to talk about. Thanks for taking the time out. The news just broke the past couple of hours that treasury secretary Steven Mnuchin declined to extend several that the programs. Were you surprised . Raphael i was a bit surprised. Right after the announcement, a statement came up from the board , the Federal Reserve board, expressing interest to keep them available. That is where i am. Given where the economy is, so much uncertainty still there, it is prudent to keep those things open so that when people, if they have stress, can draw upon it. Raphael, this comes at a time when there is so much uncertainty and i would say angst over whether the federal government will pass by other Congress Another stimulus package, and when would it happen . It keeps getting pushed further into the future. So it seems if you are trying to boost confidence, reinsure reassure investors, the timing isnt the best. Raphael what we have seen through months of this crisis is that uncertainty has really kept people from engaging in the economy. I talk to Business Leaders and they basically tell me, i dont know what it is going to be like three months from now. At the beginning of the crisis, they thought they would be through this by september. And now, it looks like we will be well into 2021 before there is some librium we achieve some equilibrium we achieve, where people understand how they can do commerce and all that sort of stuff. This uncertainty is a continuous drag. My hope is that as we move forward, we can resolve it in ways that give people confidence that they can invest in their businesses, they can hire people, or if you are a family, that you can buy the things and make the investments in yourself that make sense. Kathleen specifically looking at programs that are looking like they will be ended, the Municipal Bond facility, corporate on facility, main Street Lending cilla t, as someone who has been working with these and seeing the impact, what does that mean . What is the potential outcome of that that might be a negative unintended consequence . Raphael there are two aspects to this. Tools in their presence in and of themselves have been helpful. You talk about the corporate facility, that is one where we started to see smoothing in the Corporate Bond markets even when people were not drawing down on those facilities. Somee presence gave people confidence and security that there was a backstop, and that is important. The other issue in the thing im going to pay a lot of attention to is to what extent we have not seen the drawdown, but that may be coming down in the future, and that has to do with how this riskery evolves, and where and Weakness Starts to emerge as we move further along. A lot of the federal relief initially offered is starting to expire. That is going to leave a bunch of people potentially at risk. And we are going to try to figure out what those risks look like and how, if they come to full fruition, they will flow through the economy. Kathleen you and other fed officials have said the door is opening to using the door is open to using all these tools, including bond purchases. With key programs in jeopardy, and government stimulus via unemployment checks in checks to Small Businesses, with all of that possibly not happening, at least for a while, is there more pressure on the fed now to say, here are the tools we have got left, we better use them, particularly buying bonds . Raphael i dont know if i would say there is more pressure. I think the pressure on our institution to make sure we are doing all we can to support the economy has been there from the beginning. It was really a motivation for us. To get these facilities in place, start buying assets, and move our interest rate. We put the pressure on ourselves. We are committed to doing all that we can and i think we still have powerful tools. I have said this and my colleagues have said this as well, the best and most appropriate way to move forward is for this to be an all hands on deck situation. Monetary policy work, fiscal policy work, what other other what other facilities we can get there, they will all put us in the right direction and we will be much better off in terms of her recovery. Kathleen about this issue of more bond purchases, what does Raphael Bostic have to see in the economy . What are you watching to be able to say, we dont know how it is going to work, but it is time to buy bonds. I vote yes. Raphael there are two things for me right now. I am paying a lot of attention to what is happening with jobs, particularly jobs lost. When that first happened, most of the jobs were listed as temporary job losses. In recent weeks, we have seen a lot of those temporary jobs convert into personal into permanent job losses. Says weakness. I talked to a lot of bankers and they have a good eye on how those relief checks come to families and how they go out. I start to see that there are a lot of families that have burned through their savings and dont have options in terms of how they are going to stay in their home or buy food or whatever, that is going to be another sign that we are at a Tipping Point that will require even more energetic engagement on our part. Kathleen and of course all this is happening as the virus is researching in the United States and around the world. The International Monetary fund, in a report from its chief on Bloomberg Television earlier, was concerned could derail the Global Recovery. What about the u. S. Recovery . You have been saying, by the second half of next year, we could have a very robust recovery, but what about right now . Is there a risk this goes off the track . Raphael there is certainly risk. At its heart, we have a Public Health problem first that has morphed into an economic problem. And if we dont deal with the Public Health aspect, it is very hard to imagine how the economics are going to come back very robustly. So we have got to get that under control. The news on the vaccine and the progress made there is very promising, but a vaccine is not going to get through the whole economy and our population before the middle of next year. We have a shortrun issue that we have got to take care of and i am hopeful. Every event they speak out, i say we have got to follow the advice of Public Health professionals, wear a mask, wash your hands, mind your distance. What we have learned is that we can manage, but we have to be responsible on this. If we are not responsible, that pushes back with the recovery is going to look like. So i am going to continue to yell from every mountaintop, get your masks out, you dont have to wear them all the time, but there are times it is important just so we can try to get the spread of the virus under control. Youreen you agree with fed colleagues who think there is a risk we could see negative growth in the Fourth Quarter of next year . Raphael there is a risk. It is not in my model right now, but it is something i have to monitor. We expect some slow down in the second or third quarters. We came in much stronger than i would have thought in the fourth. I am expecting that the toinning of 2021 is going continue to show positive growth. Further away from the initial event itself, there is risk, but that is not in my model right now. Amazing we had existing home Sales Numbers this year. I should say they are very strong. About 6. 5 Million Units annualized, the kind of numbers we saw in the 2000 when the over 7rate got up to million annualized in 2005, i believe. Then we had a bubble that burst, and all that. Are you a bit concerned perhaps that all the stimulus from the fed, low rates, bond purchases, have helped fuel something that looks like a bubble . A bubbleim not seeing right now. I would say that people are being prudent in their money management. If they have resources, it gives them an opportunity to do refinancing. When you think about the recovery, it is a tale of two recoveries, one where people were at risk found out that their jobs were still going to be there, work from home, able to do all those things, they still have income and are able to reposition themselves in a firmer way. And on the other side, you have a bunch of families and businesses who just dont have that same sort of luxury. And they have risks as well. One of the challenges we have as policymakers, and particularly as the Federal Reserve, we have tools that we have to apply to the entire economy. But what i am most concerned about at this point is that we dont forget about that segment of the economy that is still in pain, still precarious and still at risk. Until we get that under control, i think our policies are wellpositioned, and we have to continue to provide that support for families. Kathleen inquiring minds want to know, you just assumed a new role with the Atlanta Chamber of commerce, chairman elect for 2022 are you expecting to be staying in atlanta . Been talk you might be moving to washington and taking a new post in a new administration, assuming joe biden is the next president , which is what we think he is. Raphael i have seen my name on a lot of lists. I have not spoken to anyone with the Transition Team right now, so ive got to go about doing my job. And there is still so much to do, im going to keep my head down and do those things that we will see what the future brings. Kathleen there you go. I know one thing in the future, atlanta fed president Raphael Bostic staying with us. Moorehead after this more ahead after this short break. This is bloomberg. Kathleen welcome back to daybreak asia as we returned to our conversation with Raphael Bostic. The atlanta fed president has been outspoken after the killing of george floyd on the topic of a quality and systemic racism. Yokelled systemic racism a that drags on the American Economy. I want to talk about this question you eloquently highlighted fact that. You have done a lot of work on this, and the Federal Reserve has done a lot of work. Six months after the fact almost, what is at the top of your list now . What have you learned about what needs to be done . And what is most important for the fed and likeminded agencies and government officials to focus on now . This hasfirst of all, been such an important topic. And i have been really gratified by how many people who have read the essay and have said, i want to step forward and make a difference. Toouple of things jump out me. First is the acknowledgment that this is a problem and Everybody Needs to take it seriously, and Everybody Needs to participate to try to make a difference. The second thing i try to tell people is that although this is a problem that emerged over decades, and many institutions have imposed racism, small actions can make a difference. So we all need to have accountability in terms of how we engage with people we live with and work with. And the other thing is to find solutions that are actionable. A lot of events we have now started convening are about things we can do to change the narrative and change understanding about what the barriers are and what possibilities are. I am really excited, because so many is this leaders, Community Leaders and so many Public Officials have all said that this is something i am redoubling my commitment to, and i want a deep understanding on this so i can make real change. Kathleen housing, we talked about it earlier, and on your housingnd, you were at and urban development as a top director, you were on the board so you dontac, have just theoretical study knowledge, you know about it. Hispanic homeowners considerably more every year than they do everybody else. What is wrong . Can that be fixed . Raphael i think so. There are a couple of pieces to this. One, we have to think about making sure that africanamerican families and latino families know how to manage their credit from very early ages. We know Credit Scores are lower for black and hispanic families than they are for others, and that is about decisions and choices that people are given really early on. You can make a difference there. A second thing we need to think about is how we think about risky neighborhoods. We just hosted a conference a couple of months back at historian we had a that spoke and told us about preconceived notions in risky them tohoods has caused fund things at higher costs. So we have to attack those narratives so the same sort of risks are appreciated and treated the same in minority neighborhoods and white neighborhoods. At the other thing i would say is that there is research that shows that africanamericans in particular, research by staff at the atlanta fed, have really and respond tofy economic incentives. Research shows that when we did quantitative easing and orbit rates fell dramatically fellg and Mortgage Rates dramatically in the 2010s, africanamerican borrowers didnt refinance as ruth leslie is white borrowers did. That meant they were probably paying higher Interest Rates than they needed to. We need to figure out what is driving. So we can get to a place where they take advantage of their opportunities as much as everybody else, and dont carry burdens that are unnecessary. Shery is this more about raising awareness, changing the narrative about these racial is it about setting specific, shortterm policy projects for the Federal Reserve . Raphael it is a little of both. We have conversations at my bank about this and also my colleagues, we spend a lot of time thinking about how our policies are impacting our staff as well as the communities around us. We want to make sure we are being true to inclusion and diversity when comes to paying living wages, when it comes to seemingly mundane things like reimbursement policies, which have imposed different types of burdens on staff depending on their economic means. I want to make sure that we as an institution are responsible in that. One thing i have been gratified by is that so many Business Leaders have looked at their staffs and said, does my leadership look like my rank and file . And these are metrics that we can use to really identify practicesre equality may not be matching other principles that we have in our vision and mission statement. Those sorts of explorations can , signaling toull the leaders certainly, but also for the staff, giving them a sense that if they work hard, their chance for improving and moving forward is greater than it was before. What president elect joe biden is calling for, amendment to the Federal Reserve that would require the fed to regularly report on racial gaps, could that be done . Raphael to be honest, the fed is doing this already. They may not do it on a regular basis in a public setting, but with my team, we report on these gaps. So we are aware of them. Aat has really changed is, broader willingness and society to talk about them and engage in them, and that is the thing that has really changed. If you look at the Federal Reserve and our engagement around issues of Racial Equity and diversity, we have become extremely vocal on this, and we are going to stay that way. This is a change that is going to be enduring. And it is going to allow us to impact peoples understanding around these issues on multiple dimensions, even on dimensions when our top policy tools may not be the ones that are going to move the dial. Kathleen i want to come back to housing. Ever since i read the story a couple of weeks ago, i have been thinking about interviewing you. Theres a story on bloomberg about a black realtor in the northeast says this hot Housing Market is right some, certainly if you are a seller, but i have clients who are getting priced out, a lot of black people who want to buy houses, whoever is moving from the city to get out to the suburbs, so it is an unintended consequence, but it is a consequence. Is there some policy step that or do youe taken, just say there are winners and losers when you try to get things going at the fed . Shortterm have issues and longterm issues and when you think about housing on where people live, there is a longterm issue as well. We have to think about how and where we built housing in town much we build. In so many communities, there isnt a diversity option for families if they wanted to leave in those communities. So they do find that there are constraints on the supply of housing that they can have access to. We need a robust conversation around how we make sure that every community is accessible in ways that can help those communities be stronger and more robust and resilient. When i lived in los angeles, we had a tremendous shortage of units, and that imposed costs on the entire region. People at to live far, far away from where they work, it added congestions on freeways, and it was a cost we all or we all bore. And i dont think enough people recognize that that was a function of how we do our housing, how we build it and the patterns we engage in. We need a whole rethink on this. And if we do that, the likelihood that this kind of crowding out of certain people based on their income level will be much less likely. As an africanamerican man who has been very successful, president of the atlanta fed is no small accomplishment. University,nford very successful in economics, yet people say the fed economics profession is very racist. Im curious if you found out along the way, and if you did, how you dealt with it . And how would you advise young people . A field isonomics as actually very difficult for those who dont come from a traditional economist background, minorities, women, immigrants to some extent, all are at a disadvantage because to some extent, the field isnt built to support them and provide that kind of connective tissue, if you will, as to how we should approach it. I got super lucky, found mentors in graduate school, and as i was coming through the ranks, basically, every tom i fell down, they picked me up and said you have to keep going, you have talent, move forward. What i would say to people who are thinking about this, africanamericans, latinos, asian americans, women who want to get into this field, there are many more out there than blick knowledge that want to provide that support. It is hard work for sure, but i think this is as good a time as any for us to increase diversity in the field. Shery what sort of support do you want to see from the Incoming Biden Administration when it comes to closing these Racial Disparities . Job to it is not my provide advice to the incoming administration. I would say we have to think about root causes. We are running a Webinar Series called racism in the economy, and we are trying to speak to root causes that have contributed to these disparities. Things like employment blood and how we treat temporary workers, how health care plays out, housing and the burdens particular families have. And i think you must also have a talk about the criminal justice system, where sentencing has fallen disproportionately on africanamerican men. If we have room to find ways to narrow these gaps, we have got to understand what the barriers and challenges are in all those areas, and then find solutions that we can implement and sustain to move forward, so we dont lose the people that have gotten already caught up in that, and we can prevent new people from getting caught up in that. It was aphael bostic, pleasure having you on. Thank you for joining us. The atlanta fed president along with our bloomberg Global Policy editor Kathleen Hays. Thank you to you both. Lets check markets now. A little Downside Pressure when it comes to kiwi stocks, down. 3 , this coming after kiwi stocks reached a record high this week. So we are closing out the week in negative territory. Asx 200 unchanged, but of course the asx 200 was also around february highs, so we are seeing a little pressure, not surprising given we are seeing more pessimism about the virus spreading around the world, not to mention more restrictions, whether in the u. S. Or europe. In asia, nikkei futures down. 3 . We got Consumer Price numbers Consumer Prices contracting 7 year on year for the month of october. Kospi futures, unchanged. Coming up on bloomberg daybreak asia, we are leaving beijing to get the view of the beijing chamber of congress. And just before that, mccrory capitals head of asian strategy. This is bloomberg. Shery welcome to daybreak asia, . Shery haidi asia traffic as major markets have just open for trade. Patient looks set to down from wall streets optimism u. S. Futures following the dollar declines. Covid19 poses a growing threat to the economy. The fed, the and g20 nations all worn surging infection numbers may undermine the chances of a Global Recovery. Bubblefirst travel lunches this weekend as aviation struggles with the virus fallout. Bloomberg is on one of the first flights between singapore and hong kong. Lets get straight to this Friday Market action with sophie kamaruddin. Wrap up the week asia druggist value stocks continue to outperform for a second consecutive week. Cyclical heavy tokyo stocks down this morning, nick 8225 off by. 6 of 1 . Druggistee if japan rising session account will determine whether buyers are warming up to tokyo equities. Backward looking given october numbers, dollaryen staying below 104. Lets turn to south korea, checking in on the korean one holding steady. We are seeing job earnings by authorities and the kospi little changed after a two day gain. Keeping an eye on tourism related gains on news that chinas foreign minister is said to visit seoul. Aspping the board, asx 200 paired its losses while they see u. S. Futures edged lower and treasury yields continuing to roll over after being weighed overnight on the virus concerns. On pandemicle] plans. The atlanta fed president telling us earlier he was surprised given the uncertainty. Gold still under pressure after a four day decline. Morgan sighed Morgan Stanleys think outside for william but sydney is bullish on gold. The team at goldman believe nearterm rate inflation has further room to run according to the forecast of goals at 2300. Haidi breaking news when it comes to remdesivir, the therapeutic that had been part of the drug cocktail that President Trump had received in october when he was diagnosed with covid19. We are hearing from the World Health Organization advising doctors not to use remdesivir for treatment of covid19. They say in the medical journal that there is currently no evidence remdesivir improve survival or the need for ventilation. This comes less than one month u. S. Remdesivir received Regulatory Approval from the fda to be used formally. The first therapeutic to receive that clearance. We know the president added. It was approved earlier this year in australia for use in severe cases of covid19 as well. It is interesting now that we are seeing the who sink there is no evidence that it actually improves survival or to stop patients from needing to go on ventilation now. Shery market watching any newsne related therapeutic closely. Lets see how markets will react with Viktor Shvets. Great to have you with us. We continue to see the rise in coronavirus cases, or restrictions around the world. Now we have this piece of news saying remdesivir is not effective. Durable, cyclical value rally in this environment . Havethink we are going to a much stronger value rally because at the end of the day there will be a vaccine. There will be treatment. It is a bit of a question of timing, but there will be value rally. , ithe sustainable basis think value is not a digestible strategy. Values are just a trading opportunity. Over the longer term, it is still going to be quality growth schematics that are drivers, not ilty. Or cyclical shery where do you see that, and tech . No, not intact. Anyone using technology differently to become efficient and profitable. Exactly the same company that is very profitable today to be unprofitable tomorrow because of other technology or another way of disturbing products that could emerge. Anybody using intangible assets, data, i. T. Software in a different way to their competitors. Geographic are your preferences, because we continue to see emerging markets tear away from the rest of the pack, outperforming a mea and as we continue to see these pandemic numbers were side of the u. S. , at least partial meltdowns lockdowns will be necessary. Are you more bullish when it comes to asia assets . Very continue to be bullish on circular assets. Some think that is not dependent on the global cyclical recovery or growth. Areasis really only two where you have circular drivers. One is the United States. The other is north east asia, primarily china. Everybody else is purely cyclical proxies. That includes European Union and eurozone, emerging markets, excluding china. , so overudes aussie the longer term we are into circular drivers. The united and states. In the shorter term, i think we will get a much stronger value recovery coming out of covid. That will pick up some of the more cyclical markets. We already saw that with eurozone outperforming the United States until a couple of sessions ago. We sought recoveries in places like philippines, indonesia, thailand. There is really no circular story behind them. Haidi tell me what you like and the Chinese Market now then . China is quite straightforward. So long as people can still invest in china. China is straightforward. Essentially what you have is everything to do with intangible assets, technology, software, digital. Al networks that remains the primary focus in china. Importanceincreasing of some of the consumerrelated names in china as well. We tend to steer away from anything which is a very heavy capital investment, things like cement, coal. Ofry there has been a lot bullishness over broader emerging markets, capital inflows have surged at we are seeing emerging market currencies rallying. Will authorities start stepping in to curb the gains in their currencies and how does that affect your market abuse Going Forward . Dollars create the key currency. If democrats took control of the senate as well as the presidency , i think it would have been all but inevitable to u. S. Dollar would be sharply lower at the following 11 or 12 months. Because we have a divided government, it is not totally clear that the u. S. Dollar will be that much weaker as we go forward. It might actually even strengthen. From an emergingmarket point of dollar isaker u. S. Very good news. Itinflates global economies, makes it easier to finance expenditures. At this stage emerging markets are just happy that u. S. Dollar is somewhat weakening. A regular decline in the u. S. Dollar is not a good thing but the gradually dropping u. S. Dollar gives you a lot of eases pressures you have in financing. Remedyeption to that is but if you look at cyclically oriented emerging markets, lowering dollar is good news. , wei Viktor Shvets appreciate your views. Lets get you to Karina Mitchell in new york. Karina president elect joe biden has reaffirmed that he will not impose a National Lockdown despite virus numbers surging across the u. S. She told a meeting of the National Governors association he has no intention of shutting down the economy, repeatedly saying no shut down. Discussovernors to making the wearing of medical mass obligatory. Suspended in brussels after one of the eu teams and tested positive for covid19. The chief negotiator broke the news and a tweet and said negotiations would be suspended for a short period. They remain in close contact at the health of all concerned parties remains the most important to them. There are reports a deal may come through next week. Aviation regulators and asia are preparing to approve the return of the beleaguered boeing 737 max after the plane at one Bank Certification in the u. S. South korea is said to be the first to reassess the jet trivia safety while indonesia says it will not have any problems after the faa address international concerns. The max has been grounded worldwide for 20 months. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Karina Mitchell. This is bloomberg. Shery still ahead, president xi jinping reiterates chinas commitment to openness. We hear from the president of the eu chamber of commerce and china. A rare public rift between the fed and the treasury. Secretary mnuchin clashes with fed chairman Jerome Powell over funding the response in the worsening pandemic in the u. S. We have the very latest. Haidi treasury secretary Steven Mnuchin is defending the fed return unused pandemic funds. He wants congress to spend it elsewhere. Emergency facilities tracking the development. Could this go to the effectiveness of how best these funds should be distributed . Actually have to say this is a really puzzling development. It is disconcerting for the fact that it is putting the fed and treasury at odds. That might be disconcerting to the markets and it will leave periodkets for a brief without part of the safety nets ,he fed as set up since march although it is important to point out right away all of the emergency programs you could describe as either inactive or dormant to some extent, so there really is no Immediate Impact on the amount of liquidity available to credit markets. That is very important to point out. Shery it was supposed to be more about not just the take off but what this says about having the safety net, which is why the Federal Reserve said this actually work. Who has final say here . That is a very good question. There is a very big legal interpretation of fight that has already started. How thetirely unclear cares act should be interpreted in terms of what is sunset on december 31 and Stephen Mnuchin has put it is interpretation. There are others with very different interpretations. You are going to see it comes down to what did congress intend when they put in the sunset for new loans from the treasury after december 31. Some are saying the fed could actually carry on its facilities making new credit after december no,and others are saying that implies not only to the treasury extending the money to the fed but also to the facilities that have benefited from those funds. Legal thicket we are getting into now, but it is also interesting that the treasury secretary has asserted he is doing this so that funds could be reallocated back to congress and put to use somewhere else. That i have to see it does not really make a lot of sense. Congress wants to spend money on a program to help some portion of the economy. It does not need this money back. In fact, you cannot apply the argument that you will save money against say the deficit by bringing this money back. This money was never scored against the u. S. Debt by the Congressional Budget Office because it was always expected this money would revert back to the treasury and budget. It is not money to be spent out. It is to support lending. That arguing falls a little bit flat. Congress could in fact, if it new moneyappropriate for any new program it wishes, it would not save any money by clawing money back from the fed in this way. Condon, great to have your insides. Earlier we spoke to the atlanta fed president about this very issue and secretary mnuchins decision to end of emergency lending programs. Here is Raphael Bostics reaction. I was surprised and after they came outent with a statement of their interest extending them and that is pretty much where i am. And where the economy is and there is so much uncertainty out there, it is prudent to keep those things open so when people, if they do have stress can draw from it. Comes at a time when there is already so much uncertainty and angst over will the federal government be able to pass another stimulus package, and if they can, when is it going to happen . It keeps getting pushed off into the future. If you were trying to boost confidence, reassure investors and businesses, the timing is not the best. What we have seen through much of this crisis is uncertainty has been a think that is get people from engaging in the economy. I talked to Business Leaders and they tell me i do not know what is going to be like three months or six months or not. At the beginning of the crisis they thought we would be through this by september and now it looks like we will be well into 2021 before there is some equilibrium we achieve where people understand how they can do commerce and all that sort of stuff, and is uncertainty looming over us is just a continuous drag. My hope is as we move forward we could resolve it anyways they gives people confidence that they can invest, businesses can hire people, or if you are a family you can go out and buy the things and make the investments in yourself that make more sense. Said thery recently door is open to using all of the tools, including more bond purchases. With key programs in jeopardy and a . Mark over this, with all of that not happening at least for a while, is there more pressure now on the fed twostate here are the tools we have got left. It we have better use them, particularly when it comes to buying more bonds. Morewould not say there is pressure. The pressure on our institution is that we are doing all we can do up the economy has been there since the beginning and it was really a motivation for us and our first bold actions to get these in place, to start buying assets and move our Interest Rates up. We put the pressure on ourselves. We are committed to doing all that we can. I think we still have powerful tools. , the best and most appropriate way to move forward is an all hands on deck situation. At policy works. Monetary policy works. Fiscal policy works. If it is all pointing in the , direction i went to sq one more question about this issue of bond purchases. What does Raphael Bostic as to see in the economy . What are you watching twostate maybe i am not a big fan, but time to buy bonds . I vote yes. There are two things for me right now. I am paying a lot of attention to what is happening in jobs come up with jobs that were lost. Most of those were viewed as temporary job losses. It recent weeks we have started to see those convert over to permanent job loss. To the extent that happens more that says there is a lot of weakness. I have talked to a lot of my bankers and they have a good eye on how those relief checks have come into families and how they are going out, and to the extent that i start to see there are families that have burned through their savings and do not have options in terms of how they are going to stay in their home or by food or whatever, that will be another sign that we are at a Tipping Point that will require even more energetic engagement on our part. That was the atlanta fed president Raphael Bostic speaking to Kathleen Hays. In georgia the recount as confirmed joe did when the states win the stage will be as. Due to among other things accusations, unfounded accusations of electoral fraud misbehavior. That we are hearing the georgia recount has found confirmation thatiden did win president ial contest. A conservative atlanta lawyer failed to win a court order halting certification of the Election Results showing joe biden did win at the stated by more than 12,000 votes and therefore getting the electoral vote counts. Expectedification is to happen later on november 20. Plenty more to come on daybreak asia. This is bloomberg. Geely as who says remdesivir should not be used to treat covid19. This comes less than a month after u. S. Regulators granted the drug speedy approval. Lets get more from tim annette. What happened . Whohat happened was the took a look at Clinical Trial data that has been out there. There is a Clinical Trial called solidarity in which remdesivir was found not to reduce deaths in covid19 patients, so that is the information to who is looking at to make this recommendation. What happens from a regulatory perspective . This got approval for serious covid19 patients in australia as well. The fda approved it as the first formally approved therapeutic after President Trump had it in his drug cocktail. Does that mean that there will be pressure for some approvals re revised or we look at looked at . You could see some people in the medical community do that. When that happens and i what timetable is an open question and a question for the fda itself. This is a drug that has been in use in a lot of situations in the United States, including the president , so there will be a lot of scrutiny. It is one of the most widely used treatments at the moment. What happens with regulars right now is to be determined. Tory what will that do vaccine uptake. People have been skeptical about those as well . The Clinical Trial data on the vaccine is very encouraging. He was seeing efficacy rates north of 95 . Uncritical trial data on remdesivir there paid reservations expressed about that early on. There is a little bit more hesitancy on the part of some who said this does not quite deliver the sort of benefit we would hope. Annette. M we have more to come on daybreak asia. 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 solutions. And thats what we deliver. So bounce forward, with comcast business. I hope my insurance pays for it. Can you tell me how much this will be . [cashier] 67. Sorry. Wait, have you heard about goodrx . Goodrx finds free coupons to help you save up to 80 on your prescriptions. Wow, i had no idea. [announcer] goodrx, stop paying too much for your prescriptions. Haidi breaking news when it comes to japan did it humming through. Japan pmi numbers in and we do have manufacturing pmi for november, the preliminary number seeing a fall to 48. 3 from the still furthering into contractionary territory. We have the pmi composite number of 47 dropping one point as well as services pmi falling from 47. 7 246. 7. A drop in momentum across Manufacturing Services and that composite number as you continue threat of new virus cases and restrictions in japan as well. This comes on the back of key consumer numbers through the last hour showing a decline at the fastest pace in more than nine years as we had government travel discounts. Great set of a numbers for the bank of japan to be mulling. Shery not a great set of numbers when it comes to coronavirus case numbers and south korea. We continue to see broad pressure for virus cases surging. 363 moreea confirming coronavirus cases for a total of more than 30,000. You have the Prime Minister addressing the nation right now urging people not to gather together, dine together. We have seen pressure rising on south korea but the kospi still continues to rally gaining ground about. 3 of 1 , and we are talking about a 2018 hi. One won didan come off its high after we had verbal intervention from authorities. 26 of 1 . Risk off sentiment and all of that. 1 of 1 . 0 up it is a mixed picture. Investors trying to grapple what is happening with the Coronavirus Infections but also vaccine optimism. Push toward tension pulling out in todays make section. The chinese president at said kids country will not decouple or isolate itself from the world. Summit his comments at a on thursday. Lets get reaction and implications for the International Business community. The president of the eu chamber of commerce in china. He joins us now from beijing. We appreciate your time. What doeswondering, it like for your membership doing business in china in what has been a very strange year . We see a strong Pandemic Recovery taking place in china. Our political factors weighing it comes to investment decisions, Business Decisions made by your members . We had a roller coaster of a the secondpse in quarter and incredibly strong rebounding in may, june and many manufacturers have doubled their [indiscernible] we rely on china being profitable. Tourism, transportation, and so forth. The pain is not evenly distributed. It investments around china are 30 . Ist it really is a headwind the kind of erosion of goodwill as china used to be 10 years ago 50 to 60 favorable in europe and now is between 70 to 80 viewed unfavorably. Fori how difficult is it european businesses that are in china to have a presence in china that rely on to being able to physically travel between europe and china to go about their business when these restrictions, these blacklists were visitors or even Foreign Residents to china it remain . Istravel within china possibly the easiest globally, from city to city very easily but outside china virtually impossible. We have been struggling for a long time to get residents back. We talk about people that pay taxes in china and germany and france and there is no big appetite to open up the borders. You can understand them partly that they do not want to covet gazes to come in. To come in. Es they are trying to be covid free on the anniversary of the locked down january to declare victory. 600 billion chinese have traveled separately. I cannot imagine that the country opens up and that is not good for us and business. Travel back and forth is virtually impossible. Shery we continue to see commitments from chinese authorities about the opening up of Chinese Markets to foreign companies. At what youre seeing on the ground . How much progress is being made . You our tell [indiscernible] so not much as happened. Geto 6 of our issues resolved. We see a greater eagerness of china to reach out to your. In the ongoing Investment Agreement there has been made some progress but overall it is still small when it comes to opening up. We call this promise fatigue. Stronglygrowing very and so they may not see the necessity. Toee a shift when it comes circulation in areas where china cannot produce materials or other equipments. At will open up to foreigners more than ever to be less dependent on supply chains coming out from china. Shery do you expect that investment treaty to be finalized by the end of the year . Professionally, i have to be an optimist. Agreement. Obust trade is going to be signed off goes on even road if the agreement is not going to be signed. It would be nice. China as shown they can get the rings done things done. Overall domestically it will not take place. Haidi how much of a concern is there over these ongoing u. K. European union brexit talks . Are you worried about disruption to investor sentiment, the ability of businesses to make these decisions Going Forward . Have kept u. K. Business as part of the European Union. Despite the fact of it breakfasted brexit. European companies will have a tougher time signing off. Scottish whiskey is not on the list. Irish whiskey is. There will be in there some disadvantages. Not thehe impact is decoupling between the u. S. And china as a far more severe impact. Ry you are it will cut president of you commerce and china. The malaysian economic recovery will likely be more ushaped then vshaped debord by dampened by the government is seeking to stamp out the virus without hurting the economy. The minister spoke exclusively to our coanchor. There is no reason for them not to support the budget and defeat the budget when the budget is named for the people and economic activities. I think we have seen what we have done and the last eight months when we injected few stimulus packages and you have seen the results. Quarterfigures of the announced by the governor recently. Economye the malaysian improved to record a smaller contraction, which was announced at minus 2. 7 . The early part of the year it was 17. 1 . Resultse some positive which we are seeing now. Certainly with this new budget, the mps are responsible to Work Together with the government to support interest of the business committees and people of malaysia. Haslinda what kind of recovery are you seeing . I ushaped recovery . That looks like the situation now but the pace is still slow because of the imposition of cmco. I think the best approach is certainly to adopt mco, then you can contain the spread of the virus in a short period of time. Cost the domestic economy, so i think we need to strike the balance and not go back to mco. Haslinda are there plans to increase revenue when the economy recovers strongly . Be theainly that should target of my ministry and my colleagues and the cabinet. We are trying to attract more investment coming to malaysia. Haslinda how are you going to do that, minister . We are engaging with many mmcs and at the trade war between america and china, our to see howes for us regiono relocate in the including in malaysia. I think malaysia must be prepared with Human Capital and also the ability to meet the demand of industries, because now the policy is to bring belaborh and not to investors in malaysia. Have you what support seen for National Carrier airlines . These issues were there. Efore the pandemic of covid19 the government as injected billions of dollars to support the industry, but a post pandemic not only Malaysia Airlines but many other airlines are also having very difficult time, and i think we need to change into new norms because i industry coulde be revived in a short deal of time because borders are still closed, people are not able to travel, and certainly that will have major impact on the industries. Are all how prepared of the governments to pump more money into Malaysia Airlines . There are many looking into this but the amount of money and funds needs to be injected into Malaysia Airlines is huge, and i do not think we have the. Apacity in a very near future we still need to address this issue as soon as possible. The malaysian trade ministers speaking exclusively to our coanchor. Do not forget if you are away from the screen you can find indepth analysis on Bloomberg Radio too. We are broadcasting live from our studio in hong kong. Bloomberg plus or bloombergradio. Com. Plenty more ahead. This is bloomberg. Karina this is daybreak asia. I am Karina Mitchell. U. S. Treasury secretary Steven Mnuchin has written to fed chair jay powell asking unused jim ellis money be returned. Cited by the president , expires on december 31. The amount outstanding is about half 1 trillion. The fed is pushing back issuing a statement it needs the money as a backstop for what still is a strange and vulnerable economy. Key Consumer Prices fell in japan last month at the fastest pace in more than nine years. Prices including fresh foods from47 accelerating septembers. 3 drop. The fall was driven by the height which came in the same lunch month last year with a series of travel discounts being offered by the government. The World Health Organization is recommending against using remdesivir to treat covid19. The advice comes weeks after u. S. Regulators granted the drug speedy approval. Who says there is currently no evidence that remdesivir improves survival rates, casting a shadow on the drug which was said to offer meaningful benefits of recovery time. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Karina Mitchell. This is bloomberg. Arey the imf and g20 warning that the recovery is at risk as a resurgence of covid19 forces press restrictions around the world. Spoke at the Bloomberg New Economy Forum and explained why leaders must stay the course. News in terms of vaccines and a chance to overcome the health crisis. But we are not there yet, and, in effect, a second wave of is slowing down the recovery. It is losing momentum. Do not withdraw support from the economy prematurely. Stay the course. In some countries, some of the measures that have helped are about to expire, and it is so important that we do not pull we see the crisis in the rearview mirror. Second, if we are to succeed to get out of this crisis in which we are altogether we have to stay together, and in that respect, working on accelerated delivery of vaccines to everyone everywhere is absolutely essential. That ifcalculated vaccines are delivered to people around the world in an accelerated manner we will gain 2025 9now and trillion, and that helps Living Standards especially in the three, do world, and not forget we are losing growth as a result of this crisis. Our trajectory has tilted downwards, and we have another huge crisis looming on the horizon, the climate crisis. Through aed action Green Investment push cant lift up growth, generate jobs push can lift up growth, generate jobs, and can be beneficial and so beneficial for everyone. We have said we will get two thirds of higher gross of boost of growth with the same infrastructure push if we do it in a synchronized matter. A call for us to Work Together. The news we have gotten in the vaccines in the past couple of weeks, is that changing significantly your and the imfs outlook for how much you can do and where the world will be in 2021 . Baseline projection for 2020 is 4. 4 . 2021, plus 5. 2 with the exception by the middle of 2021 we will get vaccines and they will be deployed universally everywhere within 18 months. What we are seeing is a confirmation of this baseline projection. If vaccines actually become more widely available faster, that somewhat Global Growth in 2021 but most importantly would give us a boost in the following years. This being said, this boost on its own is not going to be enough to return the world on the growth trajectory before the crisis. This is why we are telling governments at a time when andrest rates are so low there are workers out of work and changing investment opportunities, this is the time for a highquality infrastructure investments. They will help us to create a faster catch up, but also they eliminate obstacles to private sectors, investments from Digital Infrastructure to green mobility. These are investments that have high multiplier and it is now the time to make them. Speaking tomf boss the Eurasian Group president at the bloomberg Economy Forum. Do not miss highlights from the bloomberg Economy Forum. We will bring you the best of interviews this weekend on Bloomberg Television. As personal travel bubble opens this weekend as what is seen as a ttest for International Aviation during the pandemic. Of coanchor will be on one the first flights from singapore to hong kong. Tell us more about the bubble. What implications does this success have . I think governments and businesses around the world will be watching these closely to see if it is as success and if there is not a spike in coronavirus cases as these flights are underway in both hong kong and singapore. Quarantine free travel for these two Asian Financial hubs close to each other and essentially the world since march. They have had very strict restrictions as we know and they do not have Domestic Tourism to fall back on. It is very crucial that they get this up and running. We will have a few flights a week between hong kong and singapore initially with a maximum of 200 people allowed on each flight but they do hope Cathay Pacific and Singapore Air will start to pick up at this gets underway with daily flights expected from december 7. There is been a huge increase in interest with ticket prices surging and searches for the bubble increasing as well. Viruske yesterday to the task force minister and singapore on Bloomberg Markets asia and he was hopeful this would be a success and pave the way for further travel bubbles. A listen. Countries to other join the bubble and we hope what we are doing with hong kong can set the example of a trouble bubbles to form elsewhere in the region. But the key is countries must meet the conditions. Travel bubbles will only form among countries where there is a lower level of incidents and there is a lower level of the virus in place. Shery what did you have to do to get one of the first flights out of singapore . It is not an easy process. We know what is like prepandemic. On a thursday, i am having a bad week and im going to go for the weekend. Shery we miss you. We miss you. I had to undergo government improvement. I show them the negative just before boarding along with my flight. These flights are restricted. It is not as easy as getting online and bunking one. Once i get in hong kong i will take another test on arrival and the weight here could be up to four hours. People coming through with quarantine travel in hong kong awaiting up to 10, 12 hours. This is a shortened waiting time. Because i am not staying in hong kong for longer than 72 hours i can come back with that negative test. If you stay longer you will undergo another test. The test i took yesterday it 150. Nd 50 there is a lot of work here. I had to get government approval. Shery safe travels. Here is a check of headlines. The chinese owner of Live Streaming strike why why is been dismissing short seller allegations of fraud saying criticism is ignorant of a redhot industry. The owner says the muddy waters report is confusing and full of generalizations and it rejects a claim that it is a flawed tech company. The report came after a engine giant baidu agreed to pay more than 3 million. Just let let a seemingly unstoppable reality and electric vehicle stops as investors bet electric cars will dominate in the years to come. Shares hit an alltime high with related stocks rising and new york. Consumer reports deny tesla a basicto what they called flaws. One driver even found body hair and the pain. The Cybersecurity Firm fireeye announced a 400 million strategic advancement. Blackstone and clear sky will purchase newly designated convertible shares with the proceeds earmarked for strategic growth and that is already in announcingfireeye its acquired software in a deal worth 186 million. The bond is a cybersecurity investigation company. Over toefore we handed Bloomberg Markets lets get a look at how markets are trading. 5 . E 225 off by some momentum when it comes to the topic. A tiny game when it comes to the kospi. A little more of a tailwind when we saw the rally into the close on thursday. We are seeing asiapacific stop sending back gains of the past longest smashing that winning streak since 1988. U. S. Futures on the site after what looks like a crash, instead of being set off between secretary mnuchin and jay powell over the future of its emergency lending facilities. Coming up, we are looking at volatility in china druggist credit markets. The director of Corporate Research at will be with us. Markets coverage continues with the start of trading in hong kong and shanghai. I sent your new prescription to the pharmacy. Any idea how much it will cost . You have a choice. Insurance or goodrx. I have insurance. Insurance is not what it used to be. People struggle to get their prescription covered and prices keep rising. I recommend goodrx. You get free coupons to save on your prescriptions. [narrator] compare prices to get the best discounts. Goodrx, smart. [narrator] stop paying too much for your prescriptions. Download the free app today. Tom eight is 9 00 a. M. In beijing Bloomberg Markets im david, david