The u. K. Government says the country is not ready for a no deal brexit. Internal documents talk of chaos on trade and financial services. Shery later in Bloomberg Technology global link, one u. S. Social media giant is finding success in china. Our exclusive with linked ins ceo ahead. Lets get you a check of the markets closed in the u. S. Stocks are broadly in positive ground with the s p 500 finishing above the 3000 level for the first time in six weeks. We had health care and tech stocks leading the gains. Interesting to see the nasdaq composite closing at the highest level since july with which was the first time we saw it gaining ground in four sessions, after we saw that massive rotation away from Growth Stocks into value. That trend of slowed it down a little bit in todays session. U. S. Futures not doing much. We are looking ahead to that ecb policy decision on thursday. Lets take a look at how markets in asia are setting up. Sofie ecb is very much on the radar. Futures and asia looking mixed with south korea closed for the weekend. Marginally extending gains at the top of its close. Banks led the rally amid the shift we are seeing into value. Checking on the euro, holding levels around 110 ahead of the ecb decision which may see a showdown between the devon hawks. Malaysia also due to decide on policy. Rate cut bets are building, likely to see a hold from the bank. On the docket, Consumer Prices from india, retail sales from singapore. I want to highlight that hong kongs guess developers is to report earnings after cutting prices for a batch of apartments here in the city. Paul all right, thanks, sophie. Lets check in with check in on the first word news. Jessica thanks, paul. China has announced a range of u. S. Goods that will be exempt from 25 extra tariffs imposed last year. That is as beijing seeks to ease the impact of the trade war without lifting duties on major items such as soybeans and pork. Pharmaceuticals and lubricant oils are among the exclusions. They are effective for 12 months from next tuesday and they cover 16 categories of goods worth more than 1. 6 billion. The u. K. Governments warning of sweeping chaos from a no deal brexit with disruption to trade and financial services, and the possibility of public disorder. The document is part of a worstCase Scenario called operation Yellow Hammer. Parliament voted to force boris to make it public. The government is facing legal action. The Scottish Appeals Court is ruling the suspension of parliament is unlawful. Houseurces in the white saying john bolton left after arguments with President Trump over easing sanctions on iran. We are told the president mold the meeting with iranian leaders, but was warned against the idea by bolton. Treasury secretary Steven Mnuchin agreed with the plan, prompting the president to ask for boltons resignation. The idea of independence for catalonia is back in the news, with hundreds of thousands of people staging a mass rally in barcelona. The demonstration came weeks before verdicts in legal cases against 12 leaders. September 11 commemorates the fall of barcelona in the spanish war of succession in 1714. The succession us leaders fate face a range of charges including rebellion. Global news, 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im jessica summers. This is bloomberg. Shery u. S. Stocks rallied with the nasdaq rising to its highest level since july and the s p 500 closing above 3000 for the first time in six weeks. To discuss this, we have investments senior your Portfolio Manager shayna sizzle. Great to have you with us. How supportive will the equity markets be given we are headed to the ecbs decision on thursday, not to mention the fed next week . Shayna i thicket will continue to be supportive. Our rates here we have seen the 10year note, increasing 20 basis points over this week. Rates rising is generally a risk on, risk off trade. We are seeing cyclical stocks starting to work. Higher beta name start to work. That is generally supportive for equities. Shery we have seen this return to value. This chart on the bloomberg showing the ratio with Growth Stocks. That has been the momentum trade investors have been focused on. Yet that trade seems to wane a little bit in todays session. How do you see this shift into value for the future . Shana i dont know if we are necessarily saying a broad shift in leadership that will be sustained longterm. What i think we might be saying is a technical correction. Velocity,tes to inflows into certain areas of the market slowing down. We have seen mass inflows into defensive lowball etfs all year long. That turn, notaw necessarily that money is not necessarily going there, it is just not going as quickly as it was. We are seeing money go into the more cyclical names which are broadly what is in the value indices now. That is what is driving this change in leadership. Im not sure if there is a fundamental reason that you will see the value outperform. Anotherwant to bring up chart on the bloomberg terminal that shows 60 of stocks are on the new york Stock Exchange, now above the 50 day moving average. Equities are so hot right now but to what extent is the fed a propping this up rather than boring things like Earnings Growth . The next quarter is looking a bit bleak. Shana a couple things worth noting. We are not necessarily saying economic is here in the u. S. We have seen weakness in the manufacturing indices. Largely as a result of the tariffs and the trade issues. However, we have seen continue to strength out of the consumer. The job markets continue to be fairly strong as well. I now the 130,000 august payrolls was considered stop considered soft. If you look at rada private Market Information which includes small business, that has been strong. You have seen an increase in Wage Inflation become an greater workforce labor Market Participation as well. Overall, the Economic Indicators in the u. S. Have a band fairly good. Have been fairly good. Estimates have been coming down more than they should have which is why we saw such good earnings versus consensus in the second quarter. The Economic Outlook is reasonably good. Why do we keep talking about the fed potentially easing . Does this play to the argument that they should be holding onto their ammunition for a real crisis . Shana i agree with you completely. The fed keeps saying the reason why they are using right now is because of Global Economic weakness which you see through the negative Interest Rates overseas. However, i actually agree. There is no economic reason in the data in the u. S. That suggests the fed needs to continue to ease. And for the reason you said, im concerned because if we do have some real economic weakness, we are losing opportunities in ways in which to deal with that. Shery away from all of that macroeconomic trend, would there be any sectors you like that is away from that and more future longterm growth oriented like those Disruptive Companies out there that are getting a lot of investor attention . Shana absolutely. We have a theme this year called be innovative. We are using that as an opportunity to take advantage of new offerings in what is called the new economies. That is what you are talking about, disruptive things. That is things like xt, the ishares technology etf, or comp komp, the spider can show new economies. And that is companies that are those Disruptive Technologies which are the technologies of tomorrow. Drones, cybersecurity, all of those things. That is something we are actively looking at. That doesnt always mean technology stocks. That can mean defensive stocks, pharmaceutical and health care oriented names. And you look at portfolios, you might think i dont see a ton of growth here. That is because growth is broadly seen as technology. That is not necessarily a place where we have a lot of exposure. We do believe in those disruptive opportunities. Shery thank you so much for joining us. Shana sissel, cls senior Portfolio Manager. Linked in game plan for china. Jeff weiner explains how the Company Operates and why he is not too worried about the trade war. Closerp next, as we inch to a no deal brexit, and internal u. K. Government reports chaos and outlines the worst Case Scenario. This is bloomberg. This is bloomberg. Paul internal u. K. Government paper outlines the worst Case Scenario for a no deal brexit. Food and fuel shortages, disruption to the supply chain, protests in the street, and chaos of the border. Bloomberg opinion columnist john author has read the fivepage document and joins us now. Five pages seems sure to cover a whole to cover all those risks what is your reaction . John my reaction is that it is not exactly the most substantial of documents he will ever see. It is very scary. You can see why they did not want to publish it. That being said, whoever the Public Relations genius was, i dont know if you can see this, but someone redacted a paragraph. That is not a great idea if you are coming freedom if you are coming free of something and then redact it. It is very concerning to the British Public that there is something that is not appropriate for them to know. This has been very poorly handled by the government and on its face is very alarming. I think the particular passage that surprised me the most was that they are worried that there will be a lot of eu fishing boats in british fishing waters at the point of no deal. And they are worried about british andeen foreign trawlers, may blockading ports in violence. Quite a startling image when you start to think that they are concerned about that come october the 31st. Shery just a second, we have a breaking news out of the u. S. The Trump Administration now can curb asylum bids according to this upper room court. The Supreme Court also saying this lets asylum a rule take effect while lawsuits are proceeding. We have seen more moves by the Trump Administration to curb Asylum Seekers coming into the united states. And now the Supreme Court saying the administration can in fact curb those asylum bids into the u. S. We will get you more details as we get them. Returning to the brexit question with john, really not great news everywhere around the world. How do we know so far as this Yellow Hammer document can undermine Prime MinisterBoris Johnsons claims that it will be ok if you go ahead with a no deal brexit . John it makes him look very bad indeed that level. I think the critical point now is whether the public buys the notion that obviously we are in a chaotic situation. Whether that is the fault of the current government or whether in some way or other, it is the fault of the eu, and proponents to brexit within the u. K. I can easily imagine Public Opinion breaking by the way, because it is not as thou opposition to brexit has handled its communication well over the last three years either. But certainly, the risks of a no deal must be reducing evermore at this point. Because it does look like a seriously bad idea. Shery does that mean that we will get that brexit delay and the bill will kick in . Prime minister johnson keeps saying he probably can get a deal until the next European Council summit. John as far as i can see, there is no chance at all of a deal between now and october 31. It seems ridiculous to suggest there is any way that can happen when you think of the sheer amount of detail, sheer amount of time that went into the original deal that was not thought to be good enough. Thealso have to thrown in sheer problems with constitutionality that the Prime Minister is having. One of the more startling things is the new story today about brexit is not the highest court in scotland has ruled that a Boris Johnson lied to the queen, provoked parliament under false pretenses and parliament should be back in session. Arguably, as big a constitutional crisis as written has had in many decades. And yet it is not even the main story surrounding brexit today. I think the Prime Ministers room for maneuver when it comes to trying to wriggle out of what parliament is trying to do at this point looks very limited indeed. That does not mean in the final analysis he cant persuade people that we need to get brexit over with, let the other people and so on, that we just want to have over it. It doesnt mean that he doesnt have the last laugh. Shery he can still persuade the public. John yes, but the idea that he is going to get out of the eu by october 31 is very unlikely now. Shery john authers, thank you so much for that, are Bloomberg Opinion columnist with the latest on brexit. The London Stock Exchange weighing up on unsolicited 37 billion bid from Hong Kong Exchange and clearing, it challenges current plans to buy a data provider. Matthew boxes here. Is a lot of skepticism that this deal will happen. Mostly because people are concerned about chinese ownership of lse if this actually happens. Matthew that is fair to say. That said, there is no antitrust riskier. These companies dont overlap. That is not an issue. There is not a law in the u. K. That says Hong Kong Exchange cant do this. I think the Political Risk is there. It is no secret when anyone wants to buy someone elses exchange, politicians tend to flip out. These are considered national groundrules. Ground jewels. Whether it will be the key factor, im not so sure. I think it will come downi thino whether the managers of the London Stock Exchange think it is in the best interest of their shareholders and whether shareholders will be on board and that is an open question. Paul there is a couple of hurdles right there, the regulatory and the board thinks. There are many moving parts. How about the refitted of deal . How does that fit into this . Matthew thats what it is all about. Hong kong exchanges went into stop the London Exchange from doing this deal which would be a transformative transaction. The London Stock Exchange wants to move forward. They said today, we are committed to a refitted of deal. It is a great deal for the London Stock Exchange. Its a great deal for the ceo of the London Stock Exchange. Its also just as important to Hong Kong Exchanges to prevent them from buying this. This is classic m a. If you want to keep them from getting stronger, by them. Or keep them from doing something transformative. Paul is that how this fits in with the broader consolidation of exchanges . Matthew it is interesting you say that. You have to look at this and the broader consolidation of exchanges. The exchanges have come together for the last 10 to 15 years. There is not a lot else you can do out there. Now is the time for the Hong Kong Exchange two pounds. It was one of the last group sitting out there to be had. If lse does this transaction, they are out of reach. If Hong Kong Exchanges is not able to consummate the deal, there are not a lot of other things for them to do. We are in the last innings of the consolidation wave that has gone on for 10 years now. Paul matthew monks, thank you for joining us. A reminder, bloomberg lp, the parent of a Bloomberg News and Refinitiv RefinitivBloomberg Intelligence competes with and Thomson Reuters to provide Financial News data and information. Bid forhave more on the the lse with columbia universitys fabio salva dellien the next hour on daybreak asia. He thinks a deal is not likely. This is bloomberg. Shery im shery ahn in new york alongside paul allen in sydney and Bloomberg Technologys taylor riggs in san francisco. Lets look at the top global tech stories. Car sales inric china fell for a second straight months. One of the most durable pillars in the global auto market is crumbling. Deliveries Avenue Energy vehicles declined to 16 from a year earlier to 85,000 units. That follows a 5 fall in july. Fell after hours after adjusted First Quarter revenue mist at the lowest estimate. Income was 9. 2 billion, up year on year, below analyst expectations. Oracle said the ceo is making taking a leave of absence for healthrelated reasons. Ridehailing rivals uber and lyft gained in the session on news that the governor of california is open to talks about potential exemption from legislation that would force them to classify drivers as staff. Thatall street reported kevin newsom is personally involved in discussions with uber and lyft saying he remains committed to continuing tax. Those are the top local tech stories we are watching. Paul thanks, taylor. One u. S. Social media giant is finding rare success in the chinese market. Numbers has seen member soar despite beijings crackdown on platforms such as facebook and twitter. Taylor spoke exclusively with the ceo, jeff weiner, about his plans for china. Taylor really, linkedin is one of the few social Media Companies able to operate in china. They have been staying out of the headlines around trade and tariffs. Take a listen. Jeff it is still early days for us in china. If by operating in china you mean how we have been so successful, our vision is to create Economic Opportunity for every member of the global workforce. I think other companies who have a different sense of purpose or different mission or overarching objectives have found it difficult to do business in china because it is inconsistent with what it is they are trying to accomplish. Whereas the creation of Economic Opportunities is something every country in the world and get bend. Can get behind. Our operation in china is still very early days. We have greater focus in terms of local development then we do another markets around the world. Understanding product markets, cultural differences. We will continue to invest. Taylor with the trade and tariffs, do you feel any more pushback being a u. S. Tech company in china . Jeff not with regard to the nation of our business. For a company like microsoft, larger technology companies, there is different applications. By virtue of the fact that we are a professional network, the tariffs are not impacting us to the same extent. Taylor there has been talk that china may be would not hurt any tech company on trade or tariffs, but set up more rules, redtape, boundaries, limits. And that would be their way of putting more backlash on u. S. Tech companies. Do you feel any of that . Jeff i dont know that is anything new per se. I think when you make the decision to operate in china, its important you are prepared to comply with the law in china, and a whole host of different ways, whether that is new regulation, additional friction, whether or not it is things beyond the regulatory purview. The Competitive Landscape in china is intense. We continue to see that. Operating there is different than in the united states. That is part of our commitment to being in business in china. Taylor that was my conversation with linked in ceo jeff weiner. It has been interesting, it has been three years since we had jeff on the program. I was initially when microsoft announced its intent to acquire linkedin at the time, about june of 2016. Very interesting he was talking a lot about remaining thatendent, retaining autonomy while also continuing to get support on the backend from their parent company, microsoft. There is always the pushpull with operating and maintaining their independence. As you heard, as it relates to china, the key for linkedin is a have tried to be a jobsite whereas google and twitter have a much more of a news focus. As long as they comply by the chinese law and try to remain more of a jobsite, and stay away from news, that is how they have been able to be successful in china. Shery as in your conversation, the ceo seemed clear and china. Taylor riggs, thank you so much. Interesting conversation. That is Bloomberg Technology global link, dont miss Bloomberg Technology at 7 00 a. M. In sydney, 5 00 a. M. In hong kong, and 5 00 p. M. In new york. , we are counting down to thursdays policy announcement from the ecb which many expect to bring measures to deliver more easing. This is bloomberg. Pres. Trump we come here in the knowledge that we cannot erase the pain or the people of that dark energy day, but we offer you all that we have, our unwavering loyalty, our undying devotion, and our eternal pledge that your loved ones will never, ever be forgotten. Was President Trump speaking on the anniversary of the 9 11 terrorist attacks. It has been 18 years since those attacks happened in which 2977 people were killed. Lets now get the first word news with jessica summers. Thanks. President trump has resumed his attack on the fed. He said Interest Rates should be zero or less to help the u. S. Refinance its debt. Poll shows as a news most americans fear a recession in the next 12 months. The president accused jay powell and his colleagues of being naive for not emulating the policies of other Central Banks. He described the fed chairman and his team as boneheads. Day in malaysia. Policymakers are expected to keep rates on hold although trade tensions are raising pressure for more using. Blue bairdts in a survey, 16 are forecasting the benchmark rate will stay at 3 while hca 25 basis point cut. Bank negara malaysia was one of the first to cut basis points this year, cutting by 25 basis points. A tentative list of the number of people still unaccounted for in the bahamas following Hurricane Dorian is 2. 5 thousand names long. 10 days after the massive storm hit the island, the death toll stands at 50 but it is expected to swell as rescuers reached outlying areas. Power has returned to much of grand bahama. Electrical infrastructure on the island was destroyed. Enteredese woman who President Trumps maralago resort when he and his family were there has been convicted of trespassing and of lying to the secret service. The 33yearold consultant defended herself in court and now faces prison. That is as questions linger about what she was doing in the palm beach resort and about the level of security at the time. Global news, 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am jessica summers. This is bloomberg. Paul thanks. Around marios rife draghis policy meeting. How are markets positioning . Sophie ahead of the meeting which bfa says is the most b the most is unpredictable. European bonds have fallen in recent days. Amid the caution that the central bank may disappoint when it comes to the sizing as well as the size of qe. Allianz global warning of a bigger selloff influenced. Draghi may need to bring out the bondka for a surge in prices. He is facing a coalition of the unwilling with half of the euro area policymakers pushing back against qe. A sizable opposition aims to cast doubt. Most ccb watchers are expecting draghi will prevail. Ecb, for more on the lets bring in adam haigh. And peter coy. Let me get started with you. We are expecting this wideranging package of easing measures. In the ecb case, is this pretty much justified given where the economy in germany is, not to mention Inflation Expectations collapsing . That was a great segment showing the range of views on that question. Mario draghi is one of them more dovish members of the governing council of the ecb, so he is probably trying to bring along withellow governors substantial we are talking about possibly a. 1 cut of a deposit rate. Their Market Expectations could even be. 2 . As for the quantitative easing which could resume, some people think it could resume right away with 30 billion euros a month and even 45. Other people say there will not be a decision made at also i agree with the assessment that there was a lot of uncertainty about where this is going. It is not one of these once where the central bank is clearly telegraphed. Whatever happens is going to surprise a lot of people. Using all of this, measures coming out of europe. They definitely come with a cost, right . Arecially for banks that struggling. Are we going to see some tearing here tiering here . Iser the idea is that it punishing to these banks to cut of deposit rates because they are not able to pass that along. They can do it somewhat with depositors but they cannot do it with the retail general public, so the more negative the ecb its deposit rate goes, the more punishing it is for european banks. Is only of a tiering some of the deposits will be subject to that very negative rate by sparing the bulk of them or some portion of them, it would be less costing. Been adam, there have number of risks flagged about where the ecb is heading. Adam they have. For investors in this part of the world, of course, they have been gobbling up a lot of european debt. Currency basisss what transaction. You get the feeling that probably that has run its course. It is probably a little bit to lastly for them to continue to do this, especially if the ecb starts really putting the hammer on stimulus. The variety of how the markets are assessing this is lining up some sense of disappointment today, whether we get a 10 basis point or 20 basis point cut to the deposit rate. What peter was saying about tiering becomes even more important for the bank profitability. It is not just the european problem. It is a problem for the whole world and how europe interacts with trade on a global basis. With a few hours to go now, you know, the sense that we could get some disappointment from the ecb remains to be seen. The specifics around those three things. The tearing of the deposit tiering of the deposit rate. The major assets are going to be a problem if the ecb disappoints. We will have fixed income assets in europe and there will be the question, is the ecb fallen behind the curve . There will be the long end of the curve. The ecb i think will actually deliver. What is the real risk . For fall bonds. Is very long,et and in need of a dovish delivery is bonds like spain and italy. I would be a little bit worried. Is the environment changing for bonds . Those guests were articulating that it becomes a question as to where you are in the curve if you are still fairly long out. There might be some yield to pick up from an asian investor standpoint, you need to think about that currency angle, too. At the moment, you are seeing treasuries still continue to be reasonably well. We had a bit of a selloff of course on the back of a huge bond rally we have seen in the past 12 months and accentuated in the august moves. The setup is there for some disappointment but we really have to wait until we see the specifics of what they are coming out with before we can make a true assessment. Shery adam haigh from sydney and peter coy in new york. Of course, you can tune into our coverage of the ecb decision on bloomberg tv and radio starting at 7 45 p. M. In hong kong. Plenty more to come. This is bloomberg. Shery i am shery ahn in new york. Paul i am paul allen in sydney, and you are watching daybreak australia. Ipo sagak continues. They are considering major changes to address investor concerns. Banks as low as 15 billion. Joining us to discuss is david kirkpatrick. A bit ofad wework make a concession i guess. It will change its corporate governments to ease investor concerns. Is that a tacit admission that its Corporate Governance left a lot to be desired in the first place . David it certainly is, but there is plenty more about the company that continues to leave a lot to be desired. It tendencyarily, to continue to lose money with no prospects of reversal in that. Investorto me, it any that puts money into this company is probably going to regret it. You are not alone in your thoughts, david. Last month, we have the ceo make some remarks. Lets take a look at what he had to say. I found myself more confused rather than less confused. The only reason this is a particular issue is burden of proof. You would think that you would be motivated to make it really easy for investors to understand why they should hand over 3. 5 billion more. They obviously decided they did not have to do that. Paul that prospectus was 383 pages long, but it left a lot of questions unanswered. Is this a failure of communication . David i think there are real problems and they extend beyond the company. ,he problems really go back to i think, a fundamental misconception that set in amongst the tech investment and wall street communities more broadly about what really is a tech company. Here, we have the Real Estate Company that got a tech valuation, talked its way into that, and found tremendous support from softbank, which is certainly impressive in a sense, but the reality is, there is no reason to think this company is worth this kind of money. It is an old business model. They have done it with some panache. Ultimately, i really do not think they have a prospect of making money. Shery softbank got it wrong with wework here . David i think softbank has overfunded a lot of companies, and to some extent, they really made their lives worse by doing so. Uber isyour bid is an example of the same thing. Uber is not in as bad shape as wework. At least there is some way you can talk about maybe they would make money down the road although i am really very skeptical about that as well. Mistakee same kind of that has been made. Is it really a techny st because it uses an app and matching riders to drivers . It was all software. A softwarebased business has ans more benefits in terms of longterm Growth Opportunity and ability to scale with relatively minimal costs than Companies Like this that are so tied to realworld phenomenon, whether it is drivers and cars or real estate. Shery shery to your point, the overvaluation of some of these Companies Including the painful debuts of uber and also lyft, how much does this remind you of the tech bubble . David there is definitely a similarity. We allowed ourselves to forget what really constitutes a tech company. That is the real problem. In a way, people have been chasing returns. Institutional investors have been willing to give private Company Investors large amounts of money in the hopes of getting out of a relatively lower alternative elsewhere. And i think it has led to over funding and overly credulous approach towards companies that really do not deserve that deserve more scrutiny. Shery what does that mean for wework and can adam newman turn it around . David i would not bet on it, to be honest. The main thing with them right now, and this is being increasingly widely discussed, is if they do not raise 3 billion in this ipo, whatever valuation, they are not going to get access to a quite outline that some of the same banks and others are willing to offer them. If they do not have more cash, their business is going to be in trouble. They are losing money at such a rage, they have to lose more money. They are in a little bit of a tough spot. I think they could reduce the valuation below that if they have to in order to do the deal. Has beenomberg reporting that some sources close to j. P. Morgan and Goldman Sachs are concerned about proceeding with this ipo. Pointit be wise at this to try again later or perhaps just do it permanently . David do it permanently seems more rational to me based on what i know. My company was located in wework. We loved it. Fese things are fantastic consumers and users because we are for consumers and users. When they are being asked to do that same subset ideation, it it becomes a, problem. I dont understand why they were willing to underwrite it in the first place. Paul sherri mentioned softbank mentioned shery softbank. What does it mean for softbank as it looks to put together a vision fund . David it is one of the reasons why some people think they may pull the deal entirely because if there is no ipo, and therefore no recent valuation, in a way, softbank is not forced to confront its own investors about what mistakes it may have made. Here, we are talking about 15 for the same company. Taken ae tank in gigantic haircut and they are trying to raise a second fund and that is not good for their image. If they are really in as much charge as they may be, maybe that is an argument why they will pull the offering and promise adam newman either access to capital so we work does not the wonderwework does not go under. Shery we were supposed to be talking about apple yesterday. Iphone 11,about the their new ipad, and so forth. How did you feel about their new product launches . David i think that they are great. Essentially, apples hardware products are mostly mature businesses, so you are not going to see radical new design shifts in the next version. I think they were good enough that a lot of people i have been surprised how many people just today told me i want to get one of these highend new iphones. A lot of people are Walking Around with iphone 5s, iphone 6s. There are tons of good reasons to upgrade. I have been saying to a number that the battery life alone is worth upgrading for because, you know, i have a 10 now, and it does not run out of battery on a typical day. These new ones will get at least one hour more battery life at the highend, so that is a good reason. The camera is cool, but who really cares about the quality of the camera they have now . What people complain about is the battery life. Apple has made steps in improving that. I think the Services Strategy was shown a lot to be important. Is a machinele that is still rolling forward but nothing has really changed that dramatically. Shery a gtv chart on the bloomberg is showing how that continues to grow. How successful have they been in using the Services Sector in order to grow their ecosystem . David very successful. Apple is a masterful company that managing this balance between a softwarebased hardware product and a software business, and i think, you know, the extraordinary amounts they say they are willing to invest into their video business, as much as 6 billion, is a testimony to how much they believe they can really make a lot of money with services down the road. I would not put it past them. They have an incredibly large user base globally. That is a tremendous asset for them to Sell Services two. To. Paul all right. David kirkpatrick, thank you very much for your views there. An update on oracle for you, which reported the ceo will be taking a leave of absence. He reassured analysts on the earnings call. Lets take a quick listen. Engagedwas extremely through the end of the quarter, but now, he needs to focus on his health and taking care of himself. As the three of us have always worked as a team on managing oracle, larry and i will cover his responsibilities during his absence with support from the rest of our strong management team. Paul we also had some other comments from larry about oracle being on its way to launching an entire autonomous cloud. Oracle launched several in the coming week, and those remarks are also coming from that conference call. Stay with us. Plenty more to come on bloomberg. This is bloomberg. Shery i am shery ahn in new york. Paul i am paul allen in sydney and you are watching daybreak australia. A South African internet giant process has begun trading. He expects the business to perform how he expects the business to perform. Having a new home for the process, we are excited. There has been a good initial start. We look forward to what is going to happen today. Do you expect this listing to significantly reduce . He valuation gap the main purpose of the process listing is really to facilitate our next wave of growth so we have become, over time, a really substantial part theur original exchange to johannesburg Stock Exchange where we are closer to 25 of the index and what we realize as a company, we are growing fast. We have organic growth rates that are in the 30 range, so that means we are going to keep growing, and we need the right place to keep growing from here. 73 . U still hold i wanted to ask you whether that number is going to change. Allowinge going to be investors to more access as time goes on. See how things go over time. I think what is important for us cany as we see that we attract a great set of new investors into the process. We look forward to making that happen, and that will benefit naspers. It will own 75 of the new group. Guy what other Business Units what are the other ones that you are going to focus on next, bob . What are the most fascinating, interesting, Business Units you have at naspers . Bob we are very excited about the organic growth in the business. We are operating the largest classified group in a world under mainly the olx brand which is growing. It is making people empowering people to trade secondhand goods, which is both Good Business and growth for the world. We have also been investing, for many years, into online payments, so facilitating people in Growth Markets to pay with any instrument and participate in the online world. Finally, we started investing in online food delivery, which we believe is one of the biggest Growth Opportunities in the internet today. Dyijk. Hat was bob van thatve hkex making supplies bid for the London Stock Exchange. Inio ways in on if weighs on if he thinks the deal will go through. Shery trading in new zealand is underway. We are seeing kiwi stocks at the moment gaining. 2 after three sessions of losses. We are now seeing sydney futures higher by. 4 . The aussie dollar really trading at a tight range against the u. S. Dollar, near a six week high. We had some improvement in sentiment with u. S. Stocks gaining ground. Yesterdayrba just reaffirming it is unlikely we will need to employ unconventional monetary policy. Korea out on holiday. Plenty more to come. This is bloomberg. Paul good morning. I am paul allen in sydney. We are under one hour away from the market open in australia, japan, and south korea. Shery good evening. Sophie i am sophie i am shery ahn. Sophie i am sophie kamaruddin. Welcome to daybreak asia. Paul our top stories this thursday, Central Banks make their headlines. President trump resumes his attack on the fed. The ecb is expected to resume quantitative easing. China releases a list of u. S. Products that are exempt from