Bloomberg, Mr Trump, Majority Leader Mitch Mcconnell discussed on Bloomberg Daybreak: Asia
You know, for over an hour yesterday about the stimulus package in what we might be able to come to an agreement on As President. Trump has been saying if his administration can reach a deal with Democrats, he will lean on congressional Republicans to quote come along. Trump has said that he's ready to match the $2.2 trillion spending level demanded by Democrats, or maybe even go higher. But Senate Majority Leader Mitch McConnell has consistently said GOP senators will oppose any package that big he's still sticking with a $500 billion bill. And he says the Senate will vote on that bill either. Tomorrow or Wednesday. House Speaker Pelosi had self imposed a target of tomorrow for an agreement here, and Pelosi will be joining Bloomberg's balance of power exclusively tomorrow at 12:30 P.m. Wall Street time. We should know a lot more than risk, Yeah, looking at Softbank because it's charging ahead with its new public stuck trading on its increasing equity positions to more than $20 billion. Back in August, Self bank targeted more than $10 billion and that level could rise. Sources saying that stuff back has renewed its commitment to the public equities trading on over the past few weeks. The strategy is built around expectations of a volatile third quarter earning season. Some bankers being buying out of the money. Cool options there named they delivered returns when share prices rise and then calls a sold out even higher prices. Right. 4.5 minutes here past the hour. Let's get two news President Trump does not hide his disdain for science. But today it's taken an even more dramatic turn at Baxter Has that story and the global news from the Bloomberg 9 60 newsroom in San Francisco had you have Brian? Thanks. We're privy to the inner workings of the president's distaste at this point. Hey, has drawn a thick line between himself and science and a call with staff, calling Dr Anthony Fauci, a disaster hearing in all the idiot. The idiots he's referring to are the scientist. This leading New York governor Andrew Cuomo on ABC. The CDC George and Thie F D A doesn't have any credibility. You have Dr Fauci now saying that they basically tried to muscle him. He is the highest credibility in the nation and saying that coming up with a vaccine distribution in vaccine trust is now made very difficult. So California setting up its own monitoring system, Governor Gavin Newsom says steep challenges in distribution. Donna and the Pfizer each require different storage. Each require different distribution strategies. These are two examples of ultra cold storage and there's simply cold storage 20 degrees below Celsius that ultimately again require A unique challenge. Yeah, he says, if you can imagine ice chests full of dry ice, trying to distribute this stuff I says no chance of before the end of year mass distribution. Meanwhile, in Chicago, folks make no mistake. This is the second surge that Dr Fauci and doctor already I've been warning about since March. You're now, innit? Mayor Lori Lightfoot says the city will do what it needs to do to prevent more spread. Senator Mitch McConnell says the Senate will vote on a stimulus bill tomorrow or Wednesday as we've been reporting to you, but Boom, Bloomberg political analyst Jeannie Zeyno says passage even if it gets there is not a done deal. It's not just about Mitch McConnell. He has some Republicans there who are skittish on the idea of this massive spending bill, even though many economists and people on Wall Street and in the American United States think it's necessary. Meanwhile, the Trump campaign has lashed out at the commission on presidential debates regarding topics it wants foreign policy questions. How Biden campaign says aside have already agreed to the terms that Mr Trump is afraid to answer more questions about covert response, and Senator Kamala Harris on the campaign trail. Inez says that she wants to make one thing very clear job. Biden will not increase taxes on anyone who makes less than $400,000. A year in San Francisco, period. Sorry. Period in San Francisco. I'm Ed Baxter. This is Bloomberg. Mariah Period. Yeah, thanks very much for the news period. Now, the analysis on markets and let's say good morning to Jacob's head of research and strategy at Global X. Management. So Jay. We had some selling today and on the surface, it looks like it's tied to stimulus. And indeed, that was our top story. We ran through it. They're fairly well. But with bond yields pretty firm, and the dollar week doesn't seem like there's all that much fear out there of a big drop off in in growth, maybe just repositioning and inequities after a A heady run this month. Well, I think there's you're starting to see the combination of fears around the lack of any sort of fiscal stimulus, you know being reached as well as a general increase in Kobe 19 cases in the United States heading into the winter, So I think there's a little bit of fear starting to be injected into these markets. Evaluations are already quite high. So I think we could see the market retrace some percentage points here In the next few weeks. A CZ people tried to kind of balance these different negative impacts coming out of Washington. Well, I've seen it takes on a new purpose isn't to get the stimulus package Donald to get us to Mrs in place, because all that optimism around the reopening of the economy's pretty much of faded into the dust, hasn't it? Well, we're not really seeing a fully reopened economy Right now. There's certainly a lot of fears around Corona virus continuing to spread in the United States, especially in ah, in areas like Eric City that were hit pretty hard previously. So you know, without the fiscal stimulus still being reached. It just puts greater fear into the markets that if there is a corona virus outbreak heading into this winter that it will have lasting economic damage. So what's the strategy here? Do you do you expected Dip of maybe 10%. It's It's where we had a 10% dip in September and then had almost a 9 to 10% pop in October. So when we go down another 10% or or what Well, yeah, I think we could see the September market all over again because the market kind of revealed its hand of how it feels when there's no physical, no fiscal stimulus coming through. I think the difference here is the latest polling numbers show the likelihood of a blue wave in this election. Increasing. So maybe this is more of a temporary lack of any sort of deal but post election and post people taking the new political appointments that they'll be able to pass a bigger deal. Maybe in January or February. So maybe this is a little more short term lives. But do you think of market selloff could be in order? If if people really get negative on the last day, and you buy that sell off, or do you worry, it goes further. Well, I think what we have to look at is what areas of the market are likely to continue to grow kind of, regardless of fiscal stimulus. So you know the areas that we've been pretty excited about are the parts of the market that are Really facilitating more of this reopening, and I and I don't mean airlines hotels with people you know, commonly associate with every opening trade. This is more companies that are promoting flexibility and safety in this environment, because we don't know if we're going to see more officers open or we're going to see them close heading into the winter. So we're looking at Cloud computing stocks that are continuing to facilitate work from home. We're looking at the Internet of things as wearable sales we expect to really increase heading into the winter, given that wearables are showing some early signs of detecting covert 19 greater emphasis on health and moments. And some biotech stocks in the genomic space that are involved in testing Diagnostic Centre vaccine development because that is You know what we're seeing is continued increase in intestine capabilities as people like to create these safe bubbles, whether it's university campuses or sports teams. Yeah, like the NFL or the N B. A. R. Even major league Baseball pulled it often and the Premier League in in the U. K so it can't be done and look out here in Asia..