tv Bloomberg Daybreak Australia Bloomberg October 11, 2020 6:00pm-7:00pm EDT
haidi: good morning and welcome to daybreak australia. we are counting down to asia's major markets open. shery: i am shery ahn. haidi: stimulus talks remained deadlocked in washington. president trump says republicans are having a hard time with nancy pelosi. she says that the current offers are grossly inadequate. pressure as they moved to calm the market.
they will maintain normal monetary policy for as long as possible. president trump plans a campaign event in orlando as his doctor says he is not a transmission risk. australia debates evening travel curbs although the u.s. and europe are not on the list. shery: u.s. futures are coming after, down about 0.25%, we saw the biggest weekly increase in u.s. stocks since july. president trump an offer to democrats. nasdaq's futures under pressure. we have some deals among chipmakers leading them higher. take a look at what oil is doing
at the moment. we continue to move downward. still at the $40 per barrel level. the biggest weekly gain since june. hurricane delta and libya saying that they will start production on their biggest oilfield. we have demand concerns. not so much since hurricane delta has been losing force. sophie? stocks went to a high this monday. after the long weekend, the check on free and trade this morning. we will get an outlook from india. in sydney we are watching the an australian -- ore clocks a record september. let's go for a quick check on
the markets this morning. we are seeing yen slightly under pressure but holding steady. the aussie dollar trading softer after a two-week advance. looking at the kiwi is the offshore yuan is raising strength. let's pull up the chart to see the retreat. n, we coulde yua get more weakness as health officials amplify their intervention after making it easier to short the ram and be -- reminbi. remainedimulus talks deadlocked in washington as president trump and speaker of the house nancy pelosi blame each other. the president has been sending shifting signals for the amount of stimulus that he wants. trump: the republicans went to do it we are having a hard time with nancy pelosi.
she thinks she can influence the election deny think they are hurting themselves by not doing it. roz, it was a busy weekend of back-and-forth. what are we expecting? will the administration up their offer? it just seems like political theater at this point. haidi is now saying he wants to have a stimulus plan of $1.8 trillion or more. not so much the dollars in question, but the substance of what the aid would be. republicans in the senate really don't want a bill of that size. they are worried about the deficit again, and they don't want to be doing a $1.8 trillion bill. mark meadows, the white house chief of staff, and treasury
secretary mnuchin called to all parties, urging a small bill to unspentup some of the stimulus funds from earlier in the year, to get those going, and then work on a bigger bill. they are looking for something fantastical. , theear from people president of the minneapolis fed saying without fiscal stimulus, the u.s. economy is shaky. the delta pilots coming out today talking about how weak the airline industry is. there is a lot of pressure to get things done but time and again it has not had any impact. u.s. stimulus package very important ahead of the election. we are hearing that president
trump has been cleared by his doctor. the president is pitching his postinfection immunity as an advantage against joe biden. what do we know about his schedule? he is hitting the trail as of tomorrow. he would like to do a campaign event every day between now and november 3. he's going to pennsylvania, florida, and iowa. it is interesting to see him visit iowa which he won by nine in 2016. you think that would be an easy pickup but he is going there this week. trump is down 10 points from joe biden nationally. it is tighter in some of these battleground states. as he gets onto the road, he gets earned media in local markets. that is definitely his plan to try to narrow the gap. go, theos, before we
presidential debate has been scrapped for this week. because we expecting the president may want that town hall meeting? it sounds like joe biden would like to have a town hall meeting where he takes questions directly from voters. my impression from president trump's he may have another of his signature campaign rallies. he might do an event where he is close to the voters. very interesting turn of events about the debate. trump having been cleared by his doctor is once again saying, come debate me, but i don't think that is in the candidate's hands. watch out for some scheduling announcement. shery: power bloomberg deputy managing editor joining us from washington. coronavirus cases continue to
rise around the world with the u.k. considering a new national lockdown. will address parliament later on monday and is expected to warn of a three- tier shutdown across england. saying infections have stabilized. despite nationwide numbers at a record. china says that it will maintain normal monetary policy for as long as possible while boosting household savings and incomes. ensuresays that he will liquidity. he cautions that excessive stimulus could increased at and create asset bubbles. data meetingsomic this week will shed more light on the state of the global recovery. the international monetary fund meets the worst depression since the depression.
the world bank will hold annual meetings with both calling on the g20 to extend reprieve on debt payments from the poorest nations. european union leaders gathered saying significant gaps remain in brexit talks. boris johnson has had october 15 as his deadline for a deal. merkel chancellor angela that progress is increasingly urgent. he says he is prepared to walk away if necessary. brussels is set to be prepared to call his bluff. global news, 24 hours a day, on bloomberg and on quick take, powered by more than 2700 journalists and analysts in more than 120 countries. over to you. kramer's capital research gives us her outlook on stimulus talks. plus the plans to reopen the travel corridors.
haidi: optimism over the stimulus deal in the u.s. but the week is over and no deal. hillary kramer is one of those navigating the volatility. she joins us on the line now. a lot of to and fro as our previous washington correspondent put it. what are the markets pricing in at this stage? >> the markets are starting to rise. of reason why we have all the major indices, including the territory, istory
the expectation that we are coming out of the impact of the pandemic, which has led people to be home and not working, tightening back on spending. we should expect that we are another time going down. it is not possible we will just be able to continue running forward. the pandemic has come back to us. it is in the northeast, across the united states, and our numbers in new york and new jersey have not been as high since august, which was the height of the pandemic for us. everyone needs to be very prepared and mindful that, even though restaurants have opened backup, there are going to be many who are not going to make it. i'm not just talking about the mom-and-pop players.
many stores, restaurants, mixed retail locations. there are already -- always stars that are born. it is days like this that you can end up with incredible opportunities. haidi: you have to tell us about some of these stars and the opportunities you are looking for. hilary: because we have a background with chewy.com, i felt it is important to go back to them for just a minute. i am verysay that impressed that bloomberg leave me, listened to me and gave me the audience to say i have this $23 stock that provides dog
food, cat food, donkey diapers,, -- doggy diapers, antidepressants for animals has become the standard for ordering for pets. i want to close the loop because at that time it was an ipo. chewy has been over $70 per share. $61.80 now and continues to rise. i still see she we.com as ultimately becoming an act -- i asll see shchewy.com ultimate becoming an acquisition target. is the kind of company that amazon would like to buy. it is successful and puts loyalty programs that work. we should expect that we will continue to see revenue which, just for expectations for the
first quarter alone, will be of billion, at 47%. that would be the first one so i can go full-circle there. shery: let me ask you broadly about the sector and what sort of companies that you like as well. the gtv chart showing how small caps have been on a hot streak. when you have these names you like, where would you put them relative to the amazons of the world? because amazon is not going to double anytime soon. i love alarm.com. many think it is a competitor and could have trouble with r ing. $3.3 billion market cap.
cloud-based security solutions. even if the internet is down or the power is down, customers still have connectivity. we're going to see that grow.com will continue to as the situation that we are in in this pandemic world, the level of crime has risen, and you have less people around. i would go for that. also integrates the technology we have been waiting for for so long which is video monitoring, intelligence automating, and energy management. shery: we will be watching that stock very closely. a huge rally this year.
hillary kramer, great to have your thoughts. the fed mainsays street program is a disaster and that the u.s. has done permanent damage to the jobs market. he spoke to bloomberg about that and the prospect for more fiscal stimulus. >> it all depends on the definition of saving the economy. if they can put up the package that is proposed, the $1.8 trillion, that is probably enough to buy us another six months. time to make an difference for the month of november, but the impact might be felt by christmas. in terms of the long run, the cares act has done very little to lift structural growth for the long-term. monetary policy has saved the
.redit markets in a lot of ways how would you compare that to the access for smaller businesses as we have seen so many shut down? >> what the policymakers are doing is leaving themselves open to another round of criticism just like they have at the end of the financial crisis. programs were designed to bail out the big boys but they left main street behind. the main street lending programs have been a disaster. greatp, which was a program as an emergency stop gap, is gone. the airlines has been used up. we're going to start to see morefs and structurally, than half of americans are employed by small to medium businesses.
a lot of them are never coming back. we have permanently done damage to the job market which some other industry or future growth is going to have to correct for. >> you called the main street lending program a disaster. is the fed able to meet the needs of main street? >> i don't think that the question is with the fed, as much as it is in combination with the u.s. treasury. when you look at how the main street lending program was designed, the banks are sitting in the first loss position. they have to absorb a lot of losses if something goes wrong, they cannotame time use nor will they be capable of the underwriting standards which are necessary to make good loans.
i can understand why the banks are not having a lot of success with this program because they are regarding capital. bigthe banks did get a windfall here. especially those that underwrite securities. fixed income and most of the major banks has been record profitability. a feeling in washington that there is a quid pro quo here. i think they are at a standoff. some of the banks have said the consumer outlook has got better for them. is that selection bias? that the banks have chosen better customers anyway and there is a large part of the economy not seen by the banking system? >> there is certainly a large
part of the economy not being seen by the banking system. that has been an issue for chairman powell and other members of the federal reserve. getting money or capital into inner-city communities or minority business is nowhere similar to the levels that get to other factors of the economy. i think that structural issue that is embedded in the system is going to lead to a lot more thesure for the view of socialism and other programs which directly protect certain groups of our society. haidi: was the guggenheim global cio scott minard.
shery: the pboc is moving to sayinge yuan surge they no longer need to set aside cash when buying currency -- so what this does is make it easier for traders to shor tt te yuan. i thought that the pboc and chinese policymakers were more tolerant of a stronger yuan. what led to this change? and it makes it easier cheaper as you say. when these requirements were
last put in place two years ago, that was because the yuan weekend to about -- weakened to about seven on the u.s. dollar. the last quarter was the strongest quarter for the chinese currency in 12 years. on friday alone, you saw that jump 1.4% for the see ny versus the u.s. dollar. versus thehe cny u.s. dollar. we have seen a number of factors coming into support the chinese currency. stimulus story and the weaker dollar as part of the story. also the recovery in china and the yield differential when it comes to the sovereign debt. the chinese 10 year versus the u.s. ten-year, for example. and the view in china that you may get a biden presidency in the united states. all of those factors coming into
support the currency and now the pboc over the weekend is coming in and scrapping this requirement as they see ready to lead a bit of steam out of the chinese currency. haidi: i want to bring up this full-screen. 669.47 is already way stronger than forecast, going into the end of next year. if you take a look at these expectations getting chucked out the window, how far is the pboc prepared to go in capping that strength? the move was expected, to temporarily reduce optimism around the currency. you talk about focusing on the fix. that is where most stretchers say we will get a guide as to how much strength the pboc is willing to allow for the currency. the last on that they cut this
but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. president story, trump is planning a campaign event in orlando on monday. his medical team says he is no longer a covid-19 transmission risk. dr. sean conley says he has met the criteria to end isolation all them as still declined to say when he last tested negative. stimulus talks remain gridlocked in washington with president trump and nancy pelosi blaming one another. republicanst says are having a hard time with losey and she responded by
saying the offers have been grossly inadequate. the minneapolis fed president says action to support the economy is vital and north korea marked its 75th anniversary as a nation showing off a new intercontinental ballistic missile which may be able to deliver nuclear warheads to the u.s.. weapons officials say it appears to be the largest mobile rocket of its types. parent lee developed even while he was in talks with president trump last year. app that removed an helps users sidestep it's great firewalls. it stopped working on saturday and was taken off the huawei app store. after an article hailed its ability to see
officially banned sites without the use of a vpn. i'm karina mitchell and this is bloomberg. shery: let's look at some notable calls as we count down to the asian trading day with sophie in hong kong. ?hat have traders been saying pboc action was largely anticipated given the strong quarter that we saw for the u.n. . you have these two assessing the action saying it would cause a temporary pullback in the currency and that we will see volatility, but there's less of a market impact this time a year -- this time around compared when we saw the impact reserve reduced in 2017 when we had onshore and offshore rates jumping by about 300.
. as covid-19 cases arise around the world, the u.s. is struggling to slow the surge. they are talking to japan and south korea about resuming some level of travel. this, androblem with we heard in the narrative out of australia, that the u.s. and europe will be excluded with th e cases rising again. ian: yes. i think they would be very unlikely for australia which has been very careful since the beginning of this to allow countries or areas that are seeing a huge uptick. certainly in europe and other
places as the u.k. would do. a government minister said it is getting out of control, or the cases are a number of starting to pick up again. shery: here in the u.s. we continue to see very elevated levels of infection, even a few of these topping 50,000 infections per day. what is the latest on how serious this could get going into the winter? ian: i think that the past has shown that it could get quite serious. have fluctuated. created a big rise after memorial day. really skyrocketing cases.
we saw cases in the 30's and the 40's. fourth day over 50,000. up 12% over the last two weeks. that is not a great time. shery: in europe, a lot of people were worried when we saw the pictures of holidays and beaches and people going to work and now we are starting to see the grim reality of what happens. ian: in europe, people are feeling like is the u.k. minister said, it is getting out of control. the infections in the u.k. have
gone up one third in the last two weeks. france had a 28,000 cases yesterday, and one week ago 10,000 was unheard of. spain is having lockdowns. mostzech republic is the affected country in all of europe, per capita. it is unclear how they will get this under control. they have the e.u. and everything is under a patchwork of regulations and rules. it is very difficult to see right now how they'll wrestle this thing down. shery: the latest on covid infections around the world is our bloomberg editor. coming up next, president trump would like to campaign every day until the election as joe biden's lead is widening. we will discuss the next three weeks with the former democratic
it was eight countries, 10 cities. the big news is the integration of the clean network with the e.u.-cleaned toolbox. to,countries i went luxembourg has nothing but clean vendors in 5g. the big one was germany. that is where they are about ready to issue regulations that will exclude huawei. we saw the same thing with regard to austria, portugal, spain, estonia, albania. alliancetransatlantic in 5g is secure. it's about 25 of the 30 nato nations. itspecifically with germany, seems in recent weeks that there has been a shift with germany. >> it is a combination of three
factors. the first one, i spent a lot of time with nato, with the deputy secretary, and he said we cannot afford to have a fractured nato. we need to 5g civilian networks in peace and more time. we cannot have some that have trusted vendors and un-trusted vendors. the second is the 5g eu-cleaned toolbox. a lot of people don't know this but the deputy commissioner announced that the board of directors for the telcos in the decision. make a if they choose a high-risk supplier like the chinese suppliers, and something goes wrong, they are personally liable. the third thing is the integration with the clean network. they can see that momentum around the world. >> when you look at some of the economic data, whether it is
huawei or supply chains, they are making a lot of money. their profits are booming. does that concern you? how does that diminish the cloud? >> i think you will see that grow up in huawei's numbers. they are a private company so who knows with these guys. you can see that their deals are evaporating around the world. 85 5gebruary they had contracts. --in taiwan, you are specifically on chinese digital payments, you look at alipay. what is the administration doing about many of the national security economic concerns pertaining to these companies?
>> i cannot speak to those deliberations but it is a cause for concern. >> you were in taiwan attending a funeral. telus what happened and how was that? >> i went over for the funeral of president lee. he is like their george washington. i was the highest-ranking state department official since 1979. when i went over there, the chinese sent 37 fighters and bombers to break taiwanese airspace. such aell you that i had great meeting with president sy and many of the ceos. we had an economic dialogue. they are a great partner, a great friend. thatare a role model for
democracy in that part of the world. shery: the under secretary of state keith krach speaking to kevin cirilli. president trump is pitching his for mr. biden. he says it is very nice to know that he cannot get or give the virus. twitter took issue with bat flagging at misleading and potentially harmful information related to covid-19. joining us to discuss this and much more is a columbia university professor and -- always great to have your --ughts he launched a campaign saying don't let the virus dominate your lives. how successful has it been in changing the narrative of his infection which signaled a
difficult week for his campaign? >> thank you for having me. i always think about answering that question with a pop culture reference. i think about denzel washington in training day saying king kong has got nothing on me. i think about president trump as through the south lawn and all of the white house without wearing a mask, and all of his doctors and others pronouncing him to be of great health. i don't think the average american really can understand and grasp how that is possible. ithink for his supporters, would reinforce the narrative that he has woven throughout the pandemic, which is that it's not a big deal. we will get this beaten. try to go on with your lives as best as possible.
i say that in talking about where his supporters are. after he was released from the hospital i was driving through there were trump supporters standing on an overpass waving and had signs and banners. pretty energetic as they greeted drivers going under. his supporterst are in lockstep with his message. they will always be there for him. i wonder whether or not the chaotic moments of the last few weeks, including his debate performance, have not given a lot of those voters that joe biden is going after some degree of pause. shery: let's talk about those debates. you mentioned engaging the average american. when it comes to the broader public, how important is it for
the president to engage in those debates and talk to the public. we have heard from local media that the president's camp was looking for a town hall on thursday as well. >> the debates carry some we ight, in that they can create viral moments were talking points that each campaign can use. some campaigns may get a bump. can't imagine i for the democratic side, i don't think they're going to sway anybody. donald trump eskimo performance in the last debate did sway voters away from him. the vast majority of voters have already made up their minds. millions of americans have already had the opportunity to cast a vote in terms of mail-in voting and early voting. i don't know that the debates
themselves will change minds. we did see a substantial democrats after the debate with biden. not doing anymore debates, i don't think that changes anybody's mind. what it does do is reinforce what a unique and bizarre moment in history that we are in. i think that favors democrats as opposed to republicans in that way. haidi: how important is the china issue to the u.s. voter? more than ever we hear trump administration, the president, the vice president saying that a biden-harris administration would be a gift. does biden need to go harder on that position? >> from a foreign policy and foreign trade, the details of
which americans are not going to be aware of. i don't think that they are necessarily going to pay attention to it. what they will pay attention to ore language around economic security, job security. we are still seeing high unemployment numbers. seen businesses closing left and right. chinat know that the line works, but it is an important talking point for the trump-pence team and their base. if you're looking to voters in pennsylvania, wisconsin, michigan, which are starting to break more toward joe biden, they want more of a turn to what we need to do domestically to not just heal after the
pandemic, but to get us back on track economically. nothing to do with trade, but focusing more on how can you use the power and the levers of bureaucratic power to influence our economy at home. that is what they are looking to, better governance, not necessarily talk about trade. haidi: we are about to kick off the confirmation hearing for the new supreme court appointee. what happens? that confirmation is almost assured to go through. are we setting up for a potential packing of the court if there is a biden victory? >> i don't think that is going to happen. i think the court packing that a lot of progressives have talked about would lead to more problems. i think that there are other ways.
justicesh of time that serve, there have been suggestions around term limits and age limits. i don't see the court stacking isl come to fruition, but it important to note that the speed sheer number of judges that donald trump has put on the court, almost one quarter of the active federal judges currently is startling. we will have a supreme court that is likely more conservative than any court we have seen since the 1930's. that does say a lot about the potential challenges for bedrock policies. haidi: we really appreciate your colombia us, at university as a lecturer on public affairs. we have some breaking news crossing the bloomberg about the australian company link, the
largest provider of services in their industry. they have received a takeover offer from pacific equity partners. -- $5.20 aus per share. they intend to put a vote in favor of that acquisition by carlyle group. $5.20 is that offer from pacific equity partners and carlyle group for a takeover of link, australia's fourth-largest pension pool in the world. i think that has moved up to third-largest recently. the former australian prime minister is calling for a rogue commission into rupert murdoch's media empire calling it a cancer to democracy.
>> he outlined four reasons when he launched this. he pointed out that 70% of the print media is owned by the murdoch empire in australia, including a most every newspaper in queensland. queensland often to terms -- determines the outcome of national elections. he did use explicit terms calling the murdoch media a cancer on australian democracy. has lost money making newspapers but keeps them and buys more of them with a single purpose in mind which is to maximize his political power in the country in defense of his ideological interests like lima change denial, as well as prosecuting his commercial interests. paul: he went on to say that rupert murdoch media viciously campaigns in favor of the right
wing party. he called him swaggering and bullying against anyone who stands up to them. it comes at an interesting time when james murdoch led the empire over disagreements with editorial content. shery: what are the chances of a royal commission in australia? paul: not great. there is no threshold in australia for a government to act on a petition. this one is getting big pretty fast. he really hit a nerve here. it launched on the australian parliament on saturday and had 38,000 signatures by sunday. as heidi mentioned, it did crash, when the parliamentary service suspected it was getting signed by robots. kevin rudd's own wife was blocked from signing. parliamentary service is aware of this and is trying to remedy that now. shery: paul allen in sydney. haidi: let's get a quick check
of the latest bloomberg business flash headlines. google has launched plans to launch a new showcase in australia as it is not clear if it will be viable under the new media marketing code. google says it does not approve the draft bill but claims the arbitration system at the moment is unworkable. the concerns include what it calls unfair payment conditions and unclear definitions and obligations. big tech may face new rules on market dominance. bfg says new regulators are targeting up to 20 large internet companies that would have to accept tougher restrictions than smaller rivals. standard charter has a wide for the right to launch a securities company in china. the chinese regulator confirmed the application but gave no further details. coming up on daybreak asia, we look at the mark look -- market outlook from stanley mccarthy. steve cochran from woody's joins us to break down the flow of
♪ haidi: good morning. we are counting down to asia's major market open. shery: our top stories this hour, stimulus talks remained deadlocked in washington. president trump says republicans are having a hard time with nancy pelosi and she says current offers are grossly inadequate. the yuan faces pressure after the pboc moved to calm the markets. the governor