Saying World Leaders are treating america would longlost respect. With longlost respect. They are going to be unveiling their first piece of hardware. An aipowered device. More details into their push into driverless vehicles. Good evening. Blowout numbers. A quick chance to put this in context. How theshowing companys topline Growth Continues to be its rivals. 10 zen is in red. Google in blue. Yellow is facebook. White is alibaba. Growing gradually this topline growth the highest. Apple but wenclude do have alibaba, facebook and out for that. Alphabet. 8781. Of the, it was just 2. 5 hong kong benchmark. Ever since it has climbed steadily now just shy of 20 . There we go. It just keeps growing. Now a huge player. Like ts almost we have seen this midas touch when it comes to anything related to tencent. Having that blockbuster ipo. Oday we are looking to yixin tencent was an early investor. Times. Lets get to the broader markets. We have that ipo coming up. We have taken a bit of a pause when it comes to this global retreat in asia. Assessing ifare the pullback we have seen in recent days is a correction or a route. We are seeing a mixed session so far this thursday. Tencent may be the kicker for equity polls later. May stemgional stocks yours and stop i40 drop traders are online after a neck sure our asleep the finance minister this morning gave traders in Early Warning watching to see if there will be a stampede around the one. Yuan. Aussie bonds taiwanese dollar rising for a third day trading year an near an eight week high. Moving by remaining near a one month high. The latest release of numbers on foreign buying of japanese docs. Stocks. Taking a closer look at what is moving the dow in tokyo, steel leading gains. Stocks are on analyst regradings. Kobe steel was downgraded to neutral. We have a new ticker in sydney. Ghgatequity. This is domain. L due to start trading today. We are waiting to see if there will be any moves. Keep and eye on this. It is a spinoff of fairfax media. Thats the worst performer so far today in sydney. Rishaad thank you. Going to stick with the market theme at the moment with honk song hong kong stocks having a steep decline. Shares falling back on the liquidity outlook. We have seen a selloff in global equities. We look ahead to today. Is the party over for the time being . Tencent is the answer to that question. The result for Tencent Holdings came out after most asian markets closed on wednesday. As you have been saying the results are extremely good. I would not be surprised if that given boost to most asian markets. See e start to the japanese markets have not opened badly today. They let the decline which started last week with a massive turnaround in the japanese markets. Five negative days in a row. Yesterday was very high in the topics. A bit of capitulation. Wouldnt be surprising if the mood was better today. , we haves interesting a chart showing the trading patterns even as you had a selloff when it comes to the u. N. Session where you have the dip at the start of people are buying back in. Is that we are seeing, buying into the opportunities . If you ask real longterm investors they are probably not too worried about this. They would have expected a pullback. Markets have had an extremely good year. Most markets are still up in very good numbers for the year. Its almost been going up in a Straight Line so there is bound to be corrections. Some Fund Managers will be thinking about next year, the Global Conditions for growth look pretty good. Company earnings in good shape. No one is saying violations on a pe basis across the board are that i. They are probably thinking that 2018 will be a decent year. If i get an opportunity to get involved before the end of the year then why not. A lot ofor the moment managers will be thinking these corrections are not too big. There is a body of thought out there that we have done so well so fraud this year that some have been saying general feelings have been shut up shop and wait for 2018. Bound to have some people who were sitting on various sides of gains. When you think a lot the uncertainty of where the taxpayer is going in the United States there might be concerns. They might want to step aside for that. Theyre certainly would be some people who might want to move to cash for a little while. The Commodity Markets also had a very good run. But bond markets are pretty stable. Wantally speaking, if we to look for somewhere where people are really worried, we would expect to see the treasury market is little a lot stronger than it is. That would be a good warning sign that people are getting angst the and moving into the most defensive places. Thats not particularly happening so far. Treasury yield is getting flatter. Twoyear yields are still pretty high. Near the highs of the year. Haidi thank you so much for that. Lets get to the first word news. Paul zimbabwe and stocks fell the most in two months when the army seize control and with president mugabe under arrest. People bought equities to beat rampant inflation. Ruled a since independence 37 years ago. Is apparent fall President Trump has talked of his asia visit in a speech claiming progress on trade and gaining the respect of regional leaders. Water duringdrink his address. But there were no new announcements on trade or security. He refused to answer shouted questions. We will never again turn a blind eye to trading abuses to aggression,onomic or anything else from countries that profess a belief and open trade but do not follow the rules or live by its principles themselves. Of u. S. Inas holdings treasuries fell in september but fell but stayed near the highest level in a year. Chinese holdings declined for the first time in eight months dropping by almost 20 billion. Gender remains the biggest foreign holder of treasury. China remains the biggest foreign holder of treasury. The aussie dollar jumped but after the october Unemployment Rate unexpectedly fell, fewer people suck work with fulltime jobs continuing to search. Fewer people soft work saught work. Australias labor market has been a bright spot. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Going live to the Hong Kong Stock Exchange. We will talk to yixin. The next look at where the hidden risks are for investors. Lending to invest up to 25 billion in saudi arabia. It deepens ties softbank may put 15 billion into a new hightech city that the saudi cream crown prince wants to build on the red sea. Santos is soaring today amid reports it has been approached to support a tech overbid. The stock is up over 11 . That is the most in almost one year. A former shell executive is leaving a consortium preparing an allcash bid of 11 billion aussie dollars. Rejected initch was september. It rebuffed an approach in august from harbor energy. A long losing streak after reports want to extend Debt Repayment deadlines. They are negotiating a Credit Facility and will begin formal discussions with bondholders next week in hong kong and london. A low volatility and markets have been hitting new heights. Sometimes record highs. So people have been saying we are due for a correction. Lets look at the likelihood of that and see where the were where the risks are. Your company deals in risks so it is opportunity your here today. So it is opportune you are here today. Are we in the midst of one . Guest we look at risk. Is thing we have noticed people have become more and more comfortable with risk. You had geopolitical risk at the beginning of the year, that made people buy or sell depending on the news. They are completely ignoring that now. They are just focus on the economy, which is doing great. You are starting to hear news about the biggest deals being done here, the biggest sale of airbus jets in history. You are starting to hear these big, bold moves. In my experience they often presage a market for the a downturn for the market when it gets frosty. Olivier thats right. We have seen momentum as an investment style. Is dangerous. It is dangerous. Volatility has been down. When that rises momentum goes down. Whats your view on where we are . And perhaps we are moving down. Olivier a couple things are going on. We are near the end of the year. You have a good performance for the end of the year. Rishaad windowdressing. Olivier you might want to take that performance and lock it in. A lot of people are saying buy into this, but with what . Investors are fully invested. With what are they going to buy . Their m there might not be a buyer. One of the quotes that came out was when the market wants to go higher, nothing bothers it. But when it wants to draw down, every headline is going to start bothering it. What do you think is going to be trick, given that you say i think youre going to see a situation where we are coming towards the end of the earnings season so there will be no company news on where to reward or punish a company for doing well or not. Politically as well. Lets see where the tax bill goes. Then there is recess. There will be a lack of news to move investors. Meanwhile, the year is ending and they need to show performance. You are likely to see at best a flat market for the rest of the year because there is no incentive to move the market one way or the other short of a big incident like brexit or a natural disaster. Otherwise, people seem happy to stay fully invested. Haidi happy to stay in. The results of this survey, about 60 of investors see a goldilocks situation. When you dont have much fluctuation you have fairly loose is that a reasonable thing to expect . If not, how would you be position yourself going into 2018 . Olivier you can see that right now you are in active management nirvana. Low volatility, high dispatches active managers are outperforming their benchmark, which they have not for a long time. Thats good news for them. Value is not working. Nexte are chasing growth, years earnings and the year after that and so on. Worry is that we have a huge overweight in momentum, which as a style can reverse quickly and is hard to get rid of. So any kind of risk event that draws up volatility and correlation will hurt people like that. Haidi what about china . Everyone who comes on to this show still really likes china. Do you think the risks associated are more to do with the leverage and liquidity side or more to do with the stage of the market is in . Still retail, speculationdriven. Olivier there is china domestic that people are keeping an eye on, and the only time they really care about that is if they are talking about an event in china that will really slowdown that economy. This is one of the drivers, a key driver of global growth, so you dont want that to stall. As long as you keep that going people on the outside dont care. What they like is the for in china. The tencent, alibaba. Those guys are doing great. They are doing fantastic. Thats what they are buying. Its good to have those chinese assets to balance your apple, microsoft, i. T. Portfolio in the u. S. Its interesting. This is one aspect of what investors can do. You have a threepoint plan. Tell us about it. Olivier one of the things people have to do is keep an i on that momentum exposure they have. Find a hedge for it or at least getting out of a very high momentum position when the time comes. Things to look at in terms of correlations, correlations is what can really cause a big damage in a short time. Rishaad also have a look at the macro event in the next 12 months. Olivier right. You should have a plan for the next 12 months. A big macro event in terms of elections, regulatory change. January will be interesting. You are going to have the midterm elections in the u. S. We already had some preview of what that might look like less weekend with republicans losing a couple places. That will be interesting. Aey will monitor how much of coattail trump has going into november next year. Geopolitics is no longer seemingly the alpha, unless we get an event like brexit or the election of donald trump. Olivier that is pretty much it right now. They dont care about it anymore. Earnings come Economic Growth is where it is at. Rishaad thank you very much. Up, will tencent shares get a royal flush . This is bloomberg. Looking at the start of the trading day in hong kong. Up for tenths of 1 . Are we recovering . Share prices premarket moving up. Tencent is the premarket up for 1 . Hs of 1 4 10 of tencent defying the law of large numbers. Topping the most optimistic estimates. It is a ubiquitous social network in china. Behind it, advertising and the hit game honor of kings. 2010, revenue was a mere 1 14th of its current level. 105 up over the year to date. Ipos. We have four more haidi the one we are watching tencent was one of three early investors. Very strong backers. Online car leasing and insurance. Online car brokerage. Just taking a look at the opening ceremony. Already seeing enormous interest arising. Opening at 10 hong kong dollars 7. 70. T an ipo of rishaad getting ready to bang the gone in hong kong. , a Car Financing Company is the headline. Four others as well. Got a printing company, also a lighting company, a printing one. Furniture for outdoors. Indigo. This is the scene as he also have a market that is across asia characterized by the word caution. Haidi caution, indeed. We are seeing this wave of tech ipos gaining interest from retail investors. That has given a revitalization to hong kong. Were counting down. The tencent making its debut. Some signs of celebration at the Hong Kong Stock Exchange as we get yet another exuberantly received ipo for a tech firm, one that is that by tencent. The first early three rounds of fundraising gathered 1. 5 billio n. [indiscernible] they provide Car Insurance and leasing. There was so much interest. More than 5 of the hong kong population apply for shares. Bank rates jumped. Seeing that tencent affect if you will. Lets get over to sophie for look at the markets. We have seen some caution when it comes to regional markets. In particular when it comes to hong kong. Lets see where the tencent effect played out. Sophie looks to be the case the whicht affect happening, is set to rise for the first time in three days after losing over 1 wednesday. Closer to the 29,000 point again. We are seeing the yuan under pressure. The currency has been losing ground as the dollar has been forming up reducing the need for china to buy treasuries to slow the currency ascent. They are staying near the years high. Chinese bonds, 10 year yields a slip further away from the 4 if it earlier this week after the rise and core cpi added. A quick word on the korean yuan. Seeing it rise for a third day to the strongest level since october 2016. Lets take a closer look at the tencent affect. Shares gaining almost 2 in hong kong. Kelsos also grinning ground. Gaining ground. Lets look at some movements when a comes to what tencent is doing. Show youp the board to that stock after posting a smashing quarter. No surprise. Tencent rising on the back of that. Checking on yixin shares after its debut. Its offer price was 7. 70 hong kong shares. A quick look at some other equity movers this morning. Soho china rising after a special dividend proposal. Worth is slumping. The share price now splitting the value of wharf. Thats trading on november 23. Best way is falling. Rishaad makes outdoor furniture. Things like swimming pools. Thank you. Lets get to these acrimonious trade discussions in mexico city. With that story here is paul allen. Resumedfta talks have amid an atmosphere of tension and animosity. Mexico made a thinly veiled threat to scale back Border Patrol agent doesnt like the way negotiations are going. Thee candidate ease existing deal to file a challenge to the u. S. On lumber duties. Than the Congress Secretary bluntly warned the administration is move losing patience with the whole thing. Republican leaders have cleared a way on the tax overhaul bill, senate tax writers released a draft with would make many breaks temporary and repeal a key part of obamacare. Reopening a painful Health Care Debate could cost republicans votes. At least one says he opposes the plan. Bhp says litigation continues after the dan disaster but warns disaster settlements onng the incident which killed at least 19 in brazil. He also says that is a degree in urgency of withdrawing from u. S. Shale. Watchdogs antigraft is charging 19 people over fake tests on the bridge. Accused of falsifying things. They tamperedims with computers and swapped out samples to conceal and rectify concrete compression tests that had not been conducted in accordance with official norms. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Haidi thank you so much for that. Chinese tech remains in the headlines today. , also stellar numbers from tencent. Robin lee is set to deliver a keynote speech and outlined a strategic shift towards Artificial Intelligence and Autonomous Vehicles. Our correspondent is in beijing. What are some devices we could be hearing about . Be they are going to unveiling three hardware devices. They are a Software Company priority primarily. They are excited about these three database three devices. Probably around entertainment. More details when they are launched around 11 00. Robin will be outlining his strategy. Not just to focus on the Search Engine part of the business but knuckled down on ai which they have been spending heavily on, and Autonomous Vehicles. They have seen some of chinas big carmakers they are likely to start massproducing and autonomous bus in july of 2018. They have a great advantage when it comes to big data and they are trying to use that to power their searchround engines and stuff but Autonomous Vehicles as well. This is an opensource platform when it comes to ai and they are expecting a lot of excitement around these hardware products. Rishaad question here. What are the challenges facing this company, if any . They certainly do face challenges. They have had problems around the advertising side of the business. But they say their ai focus now is making that less of a problem. They are getting a more sophisticated advertising platform. May have decided to spin off a couple parts of the business. The delivery side and gaming. Also the analysts say in terms of Autonomous Vehicles they are not going to see much of a revenue pickup come at least short to mediumterm. But they do have a key advantage when it comes to big data. Have about 70 market share in it comes to Search Engines. They have a gold mine of data that they can use. Clearly its becoming a more competitive space and they think it is their ai products, particularly around Autonomous Vehicles, where they have an advantage. They showed off a device which you can put in a car and it will tell you if you are falling asleep and alert you to make sure you dont have an accident. Thats just one example. They want to be this to be something that impacts people in their daily lives. Rishaad thank you. A company which topped even our highest estimates. [indiscernible] our correspondent has that story. Lets start with those blockbuster results. Tencent shares are responsible for just under half the gains is so far. Quite something. Steve quite a celebratory mood here. Five ipos in the Stock Exchange including yixin, a tencentbacked company. Blockbuster numbers yesterday. A new record high of 4400 hong kong dollars. Record high up towards 400 hong kong dollars. Tencent numbers pretty strong up 61 in revenue in the third quarter. 65. 2 billion you one. Yuan. Net income up 69 . A big boost in online ad sales up 48 in the quarter. Their bigings, smartphone online battle game that has been driving revenue. That helps as well by the fact they have more than one billion users, which is health drive a lot of advertising. Helped drive it a lot of advertising. This is the biggest gain in sales for tencent since 2010. Back then, sales were just 1 14th the size. They are going against the odds of big numbers and still putting out big numbers. Touch. It is that midas the tencent affect. We saw that with yixin with its debut. Any company that has anything to do with tencent are inevitably going to do well in hong kong. Steve yeah. China literature up last week, it is tencent linked. A number of these companies are doing well. Right now the tech scene in ipos are doing very well in hong kong. Of every 20 hong kong people subscribe to that. Yixin, 161 times. They see the tencent connection as a big benefit but also the automobile sector. Yixin is not online car retailer focusing on online car loans and insurance. That something that is driving this ipo. Haidi going to leave it there but we are going to get right back to you. The hour. The man of this is bloomberg. This is Bloomberg Markets asia. Rishaad looking at yixin. Back to buy tencent just started trading on the hong kong struck exchange. A Stock Exchange. The ipo was significantly oversubscribed. Were seeing all these ones in recent days what have we would this one . Oversubscribed. We are up above 9 right now at 10. 18. T was as high as it popped up right at the open. We have the ceo here. Congratulations on the Successful Listing this morning. Me, if you are tencent or alibabalinked it gives you a bump. Can you qualify how much of it popped you get . Andy where back my tencent in many different facets. Traffic, risk management, in many different facets. The pop we are getting is from the fundamental of my business rather than just the stock market side. Steve how does it help to have a billion plus users . Andy we are currently integrating on our account systems. We are creating an entire payment of a virtual circle and allowing purchasers to all use tempe capabilities1. We are enabling customers to yucatan pay as a means of payment its many different facets of an individual who owns and uses a vehicle in china. Oftentimestimes timing is everything. You are hitting the market in a good time. Are we in a tech bubble . Andy i think we are right in the middle. Hong kong is a great place to be. Locally, living currently in the markets where we operate. Hong kong is one of the best places to be at now. Steve you dont necessarily stay frosty. We are above the previous tech bubble are ready. Andy we are operating on a fundamental basis. Myself, im looking at the market in terms of how the car market overall is driven. How the Capital Markets react to that and the two and to the performance of what we can deliver. Steve tell me how the auto market has evolved. I know 10 years ago when i moved to beijing, i tried to get auto financing and asked if i had a house. There is no Credit History with people in china. I know you work as a thirdparty. How do you reduce your risk . ,ndy even when i started yixin car financing in the car market was in the single digits. Its not necessarily that people are rich but people are likely to use cash to pay for cars. But now we have a new generation of car buyers. Baby boomers are later. They are getting used to the credit life and the like to pay installments instead of submitting cash. Yixin just happens to be at the right time in the right place in china. Steve how much growth d. C. You see in the auto financing and Auto Insurance . Andy tremendous. About 3 industry was trillion rmb per year. Year. Per a four trillion market. Upwards of 80 will be penetrated of tremendous growth. Steve habit singles day go for you . How did singles day go for you . Time wee first participated. We had a record day on singles day. ,000 submitted process applications that day. What would you say is your biggest risk right now . A lot of cities have license restrictions and traffic restrictions. Andy thats our advantage. We have thousands of different license plates because release vehicles. We are not only the leaseholder but also the Vehicle Owner and license plate owner. We stack up thousands of different license plates and policies. The biggest risk is because we are operating in such a big and equal system there are multiple parts within our system. We want to make sure every part is working together smoothly. Sustaining our growth. Steve what are you going to use proceeds for . Areasout expansion into beyond auto financing . Andy absolutely. The fleet size we are currently operating out which is more than half a million, we are looking to add one million or more vehicles onto the fleet. That you take a lot of resources. Within these fleets we are ready to install various different devices to extract data from drivers. Compiled a large sum of data tot work with shareholders figure out a way to monetize and apply them to different environments. This is something yixin is heading to. Aree i know other partners going into autonomous driving. Andy we are very connected. Locationbased services. Tencent will provide us with other things. Moving forward yixin will integrate quite seamlessly with all the shareholders. Steve how scalable these see this throughout china . Municipality has its own restrictions. Andy the beautiful thing is we are operating as a platform. Basically we deal with every municipality. We have been doing that and a must 300 different cities in china. We will continue to expand. By the time we get there will be the Biggest Network that deals with vehicles. Good to be here. Which the ceo of yixin, is one of chinas largest auto selling platforms online, as well as online Car Insurance. Back to you. All right, steve. That pump and ceremony as the stock makes its hong kong debut. Plenty more to come. This is bloomberg. Lets have a quick check of the business flash headlines. Company forecasting its first Revenue Growth in eight quarters. Currently climbing as much as 3 from a year ago up to just shy of 12 billion. He has been focusing on software and services that essentially let corporations remotely manage and secure their networks. Haidi Deutsche Bank and commerzbank both worried in new york on signs a merger could be back on the cards. Stake in Deutsche Bank months after taking a slightly bigger holding and commerzbank. That makes it the leading shareholder in both banks. Try to revive revenue after scaling back investment operations. Australias biggest electricity generator signaling it will reject government pleas in favor of renewables. It has been rebuked by the Prime Minister over plans to retire liddell in 2020. 2. That clean energy is increasingly likely to win the argument. Mention an time to eye watering record set in the world of art. A 500yearold da vinci sold for 450 million at christie in new york, smashing the previous High Water Mark for any work. It once belonged to king charles the first but disappeared around the 1900s. It was bought in 2005. The first such rediscovery in more than 100 years. Could say 450 million, or priceless. . Is this a sign of worse things to come . . This is Bloomberg David is a big burden off your shoulders now . Jeffrey i am starting to feel a little decompression. David you have succeeded a legendary business figure. Jeffrey if i was going to give advice, it would be david the financial crisis of 2008. Jeffrey i kind of want to say, i want my mommy. [laughter] david you sold things that were part of ges history. Jeffrey we were not on a path to greatness. David if a president were to say come in as a cabinet officer, what would you say . Jeffrey im not sure Business People make great public servants. [laughter] would you fix your tie, please . David well, people wouldnt recognize me if my tie was fixed, but ok. Just leave it this way. Alright