Mixed Global Economic data as well. Looking at germany. The signs are not very good. Seng, pretty much flat here in hong kong. Shanghai markets. There,table moves out lets check in with the silver market. Down at the moment. Mix, and into the increase in silver holdings. Brent crude, fears about what is going on in germany and how that could terminate how that could permeate the rest of europe. Saudi oil production, a bit of optimism that it could get stillperhaps spooking investors. , sinking further into negative territory. We did see the bank of japan not do anything today in terms of their bond buying program. Int has put some things stasis, if you will. As a result, we are not seeing very much action apart from a move to the downside. It seems like those positive yields are longshot when it comes to german bund. Guest joins us from singapore this morning. Lets start with germany. The data we got overnight, it seems like it is spreading to the services sector. How close is germany from a recession . Seeing a very sharp slowdown and i think the real problem is that the European Central bank negative deposit rate are not stimulating growth. They were intended to stimulate growth and instead, they appear to be holding the economy back by putting a massive tax on the European Banking system, much of which is being paid by derman banks. By german banks. Many of them are downsizing staff as well. They are not extending credit to the rest of the economy, as one might expect. We are seeing very weak economic growth. David hold that thought. We are looking at this life press briefing. Carrie lam is speaking in english. And enforcement by the enforcement agencies, particularly police, it is one of the important elements to ensuring the rule of law in hong kong. Over more than three months of confrontation, street protests, and sometimes very blatant thatnce, i said previously the force is under extreme pressure. Is an important Law Enforcement agency that helps us safeguard the rule of law. That does not mean i would condone irregularities or wrong practices done by the police force. Otherwise, there would not have to be all these institutions look intopcc to complaints about individual officers. On this occasion, because of the severity of the protests and incident, they have taken the initiative with my full support to undertake a factfinding study to assess important incidents and to come up with recommendations. It would be very difficult for me as a chief executive to offer my own opinion on individual determine whato is right and what is wrong, what is true and what is fake. There has been so far always different versions to the same incident. My advice and my appeal is for those affected individuals to come forward and to provide a side of the story and to be undertaken in a fair and impartial manner. I understand that in addition to the members of the council, they have they will be invited to to look atterviews videos in order to form a more impartial view of what has taken place. We have to put our trust in these important institutions, jeff kept hong kong going which have kept hong kong going for many years. We have to make sure we can continue to operate as a Civil Society and these institutions will continue to play a very important part. Thank you. Last question. Backdrop, she was thatng about the reality there will be dialogue between the government and the other side. 20,000 citizens have applied for the dialogue with the hong kong government. Singaporeg it back to , apologies forin interrupting. We were talking about the state of play in germany. Let me ask you about the role in china. Weakness can we directly link to what is happening here . China is one of germanys biggest export markets. Very high valueadded goods. A Slower Growth rate in china is not good news for germany. I really think the main problems in germany are local problems. The european has a well intended what ultimately inappropriate Monetary Policy for germany and the rest of the euro area. The other thing that is holding back germany is the most local thing of all which is their fiscal policy. Gdp are running a 2 government budget surplus. If there were ever a country in all of history that should be thinking about cutting taxes or raising Government Spending, particularly on investment, it should be germany. Hopefully, we will see some movement in that direction. Say germanye people being part of the euro is a huge benefit because the deutschmark would be looking at amazing , that is not my question. This the export to china story, is this cyclical . Hasnt it structurally shifted . Need does not mean the those capital goods anymore, they can make their own. Inchinas economy is growing sophistication. They probably do not need to buy as many goods from their traditional suppliers. Time, chinas economy is slowing down partly in response to the trade war. In response to very high levels of debt and demographic shifts. All of these are longterm structural problems that china will face and also countries like your many that export goods toward china are going to have to think of how they diversify their export markets in order to keep growing their economies. David it seems there is a common theme. A few years ago, more than a handful of economists were warning that at some point, we would find ourselves in slow down with less traditional ammunition from central banks. Are we in that situation right now . Very much true for certain central banks. Most importantly, for central banks, like the European Central bank and the Swiss National bank and the bank of japan, that already have Interest Rates at negative levels and have engaged in substantial quantitative easing programs. If you are at your limit for qe and you already have negative Interest Rates, it is not so clear. Maybe the biggest paradox or irony for the European Central ease policy by lightening up on that negative deposit rate and bringing it back closer to zero. A couple of weeks ago, when they 50 it from 40 to exempt a larger portion of the European Bank deposits from having to pay that negative deposit rate or negative deposit tax. That is an an admission on that part. Negative deposit rates are not working or achieving the intended results. Yvonne stick around. The first word news. We start with budweiser brewing. It is said to be pricing its ipo at the bottom of the range at 27 dollars a share. Last week, it was hoping to raise up to 4. 8 billion. Revised ipo is attracting cornerstone investment. Askedent trump has Stephen Mnuchin to explain why causing markets to tumble amid fear that trade talks had tumbled. He said the economy did not work and trump asked why, indicating he was not happy with the decision. Buying have started agriculture. We did not want confusion around i want them to buy farm products. Buy a lotcommitted to of agriculture. We should get them over there as soon as possible. the trade deal he agreed to with japan may be in trouble. Sources told the New York Times that tokyo remains concerned the president may still impose tariffs to vehicles shipped to the u. S. And they must be allowed to abandon the deal that happens. The issue was the last major obstacle and the white house wanted it signed during the yuan General Assembly. U. N. General assembly. The issue will be discussed on the sidelines of the General Assembly here in new york. The Iranian Foreign minister pointed to claims, saying that if iran were behind the attacks, there would be nothing left of the refinery. 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 su keenan. This is bloomberg. David still ahead, more market moving and we speak with asset chief chief asia strategist. If you have any questions for him this is bloomberg. Yvonne you are looking at some live pictures out of beijing, the press conference with the finance minister of china speaking on the economy. Chinasahead of anniversary celebrations. Paradesll be a lot of and fanfare next week. But china is juggling multiple threats when it comes to the trade war and protests in hong kong. A slowdown in the economy. You can continue watching on live go. Erik noets bring back rladn. Norland. The challenges of china, the lack of growth. , least the biggest obvious risk to the chinese economy . I would break it down into shortterm and longterm risks. Biggest shortterm risk is the trade war. The initial phase of the trade war, a 10 tariff on 200 billion worth of goods, that is like a 20 billion tax on American Consumers who buy goods from china. That is pretty small compared to the 15 trillion. Is 20 billion tax is in the process of quadrupling between september 1 and december 15 to 80 billion. Veryyou add to that a rapid rise in debt, we just got the figures over the weekend from the bank for International Settlements regarding the total credit of chinas nonFinancial Sector. From 254arter, it rose up to 259 of gdp. It puts china on par, even slightly above the debt levels we have in very slow going places like the euro area, united kingdom, and even the united states. Generally speaking, it has had a slow recovery. Is theger longterm risk 5 growth rate combined with high debt levels shifts china down to a slower rate of growth during the 20 20s. When you add the trade war on top of that, it is not the prettiest picture. Rishaad does this limit their room to maneuver . Far onout your report so what they have done so far . Is it enough . Has a lot of room to maneuver in certain ways. One thing they can do that they have not done in quite a long time, not since the beginning of 2016, is to cut Interest Rates. Leaving Interest Rates unchanged, but they have been Monetary Policy, i need to reduce their reserve requirement ratio, which allows banks to hold less capital against loans than they had previously. They have not explored the possibility of cutting Interest Rates too much in the last few years. They have a lot of latitude to ease interestrate policy if they want to. The other thing china can do is to allow the currency to fall below are lower levels. When the white house put that 10 tariff on china 16 months ago, the currency slid 9 . Now that tariffs are starting to go higher, up to 25 , the currency is down another 7 . It would not surprise me if they let the currency slide a bit further. The cost of this is that it helps to create a little bit of. Nflation which is undesirable yvonne right. Sayinggetting some lines that they will soon complete building a moderately prosperous society. In terms of the fiscal side, we have seen loosening one it comes to china, india, some parts of europe as well. Everyone is focusing on the monetary side but the physical site has been interesting as well. The hope is that the tax cuts and the like will spur investment. Lag usually is there . It really depends on the kind of tax cut. Generally speaking, if you cut Corporate Taxes or if you cut taxes on very high earners or if you cut taxes on capital gains, it attempts to boost the supply of the economy. It can be disinflationary. If you cut taxes on lower wage earners, it tends to boost demand. It tends to do it quickly. It depends on what kind of taxes they are cutting. Debt gdp isrnment not all that high. It has been climbing steadily but it is still just below 50 . The really big that is in the nonfinancial corporate sector. China really big debt in is in the nonfinancial corporate sector. China has a lot of room to explore both supplyside and demandside tax cuts as well as additional Government Spending should the economy slow more than they wanted to. Joining us out of singapore. We have plenty more ahead. This is bloomberg. Rishaad you are back with bloomberg markets. Take a look at chinese sportswear retailer top sports international. Seeking to raise one of the next week offering shares in the region of 810 hong kong dollars. It would be one of the first test thetings to market since the protests. Split the project will be 50 50 and aims to have the hyundai will invest more than 12 million in electric cars. Nissan former chairman has been fined a combined 60 million to settle u. S. Allegations they failed to disclose 140 million in compensation he was slated to receive on retirement. Nissan will pay 15 million. The claim stem from a 2004 decision that allegedly gave board authority. Opening market access, competitors, saying that shadow risksg risks and overall, have been contained. Lets take a look at what these japanese movers are doing. A lot of news surrounding, a Japanese Court will be holding. Ts first Japan Tobacco quite mysteriously moving to the upside, 1. 6 to the upside. Despite all these reports coming from ecigarettes in china sorry, u. S. , being banned and under scrutiny. David Financial Risks are contained and we will continue to update the ongoing press briefing over in china. We will leave you of a picture of futures in india, continues to stand out today. Lots more coming up. This is bloomberg. Custom ink helps us motivate our students with custom gear. We love how custom ink takes care of everything we need so we can focus on the kids. [spokeswoman] custom ink has hundreds of products to make you look and feel like a team. Upload your logo or start your design today at customink. Com david welcome back to the show. We will get you straight back to beijing to the ongoing press briefing. I will recap some of these lines. A couple of minutes ago, we went into the commercial break with him talking about how Foreign Ownership and finance will be lifted by the end of next year. In terms of where the economy is, it is running in the proper range. Prices in china are quite moderate. We need to stay committed to our course, which im guessing they will not go all out in terms of supporting the economy the way they did 10 years ago. In fact, as i was saying that, there we go. The monetary stats will be kept prudent. Several trackers, the lower 6 level. A lot of these things he is talking about, some of these objectives were brought up during the National Peoples congress back in march. We will get you more updates when we have more relevant lines. Su keenan is in new york. Su we start with u. K. Prime minister Boris Johnson and the latest on brexit. Johnson has told the eu president that he still wants a deal but that brexit will happen at the end of the month. With increasing doubts that a deal can be struck. Back in the u. K. , the labor opposition is promising a second referendum saying that . Voters saying that voters can change their minds. Public. Ed to ask the a basic and vital question. Withou prepared to leave the best deal secured or wouldnt you rather remain in the eu . A President Trump has made short and unexpected appearance at the Climate Change summit here in new york, listening to the debates. World leaders and business figures are scheduled to discuss how to tackle Climate Change. Summit activist told the they have ignored the issue for too long. You have stolen my dreams and my childhood with your empty words and i am one of the lucky ones. People are suffering. People are dying. Entire ecosystems are collapsing. We are in the beginning of a mess and all you can talk about is money and fairytales of economic growth. How dare you . Pg e is cutting power to more than 20,000 customers in northern core the foreign you in Northern California to stop equipment from sparking wildfires. Power is being cut in three counties. Pg e has warned that 120,000 customers may be affected. It filed for bankruptcy back in january with wildfire liability in the billions of dollars very of dollars. 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 su keenan. This is bloomberg. That is the bottom of the range. We are tracking the story. What do we know about this . Is it the second time lucky or second time desperate . Time lucky. Second they were able to partially exercise the upside option. Raising 4. 3 billion, which would have been the standard amount, they raised 5 billion. That shows there was enough demand. The caveat is that they have to price it at the bottom to be able to increase the size of the deal. David is it still monday next week . What else do we need to know . Julia everyone is trying to sell premium beer. It is the name of the game in the industry. Whether that succeeds is another matter. People are looking at the growth rates. Whether they stay where they are or where they are predicted to be. Competition is extremely fierce, especially in china. Valuation match up to what they have been will depend on if growth stays the way it is. Unique inhey are not this particular industry, they have all levered up. The point being, they are raising less than anticipated. What do they do about the debt . Julia they already pared down a bit of the bet the debt in july when they sold off the australian business. This helps them continue to pare down. Business, the asian they want to use it to pursue m a in the region. That is what we can be looking out for. Whether the debt will go down even more remains to be seen. Rishaad tai hui is the chief Market Strategist at j. P. Morgan. Coulde coming back it be seen as a form of endorsement . Somewhat cautious for most of the year. The number of ipos in hong kong have been similar to what we have had yeartodate last year but the size of the mega deals have been somewhat short. We did have a number of large issuance in the u. S. , especially the tech sector. It does call for a slightly brighter Fourth Quarter of this year. David it is not a proper gauge because they are coming second time round. Obviously, if you look at where we are in the cycle, there are growing worries that the window of opportunity to raise capital at a good price is starting to shut. That is where a lot of companies who want to list if we do get ino a weaker environment 2020 and corporate sentiment continues to run nervous, appetites for new companies could still become weaker. Yvonne when it comes to valuation some people perhaps would say that this whole situation meant that the glory days are over when it comes to reaching the richer valuations. Do you see that as an opportunity . See a bit of a turnaround . Probably not for the time being. Investors are paying more attention to the value of liquidity. If you look at some of the recent spikes in Interest Rates moree u. S. , they Pay Attention to the value of liquidity. The second thing, after the fact t we are looking at is deeper in the cycle, investors are paying more attention to valuations. Investors will pay more attention to these companies and if they generate profit. The liquidity in the value angles will make investors a bit more realistic on month on how much they are willing to pay for. Shock the biggest oil ever last week. Massive rotation in devalue and you see the s p still close to that high we saw this year. Can we all contribute all these factors into idiosyncratic risks that you can put behind it is story . Or is this just complacency . Complacency. Investors are looking at risky rates as falling and where can i generate return if safe assets will not deliver such returns . It is a dilemma where the Economic Cycle tells us we should be more cautious, more mindful, more safety aware. Creating investors to take advantage or to hunt for income. David what will be the next milestones you will be watching . Are you looking for spreads widening when it comes to credit . Earnings recession . Those two are very important ause if you look at brad spreads widening in the credit markets, investors have a good glimpse of what companies are looking like. It is a pretty good indicator. Distorted by all the kiwi we have seen. Earnings recession maybe distorted by all the qe we have seen. Recession, they will have to focus on Consumer Discretionary to get a good gauge. Other indicators, banks willing to lend, all of these are important to look at to gauge where we are in the cycle. We read anything into what happened to the repo market last week . We had 142 billion dollars worth of coupons coming in all of those things combining to create the perfect storm. More thehink there is Financial Sector and the policymakers can do to calm the markets. Liquidity market is coming down. The tax season, the coupons, et cetera, et cetera, that creates an environment for yields to spike. It is an important wakeup call for policymakers to say, ok, we need to make some adjustments to make sure there is sufficient liquidity . This should not come as a surprise. Mature ou and bonds tells you when bonds mature. We did see that in the asian economies. The authorities typically will provide two weeks or four weeks liquidity ahead of that season to make sure the rates are stable. Yvonne stay with us. More from tai hui. Minister speaking saying that manufacturing has been the largest beneficiary of the chinese tax cuts and the actual tax cut has been bigger than expected. This is bloomberg. David welcome back. The story of the week, it will still be india. Have a look at what we have seen monday and tuesday. Volume monday and tuesday was the equivalent of about 60 of the Monthly Average for the last 10 years. Explosion higher in the market. It resulted in this several indicators. Members of the nifty. A lesser stronger signal, the price above that 52 of the index. Another 2. 9 gain. Upthings just keep going up and away . Where is the smart money going . See if the rally will continue or not after witnessing 8 gains in the last two trading sessions. The countries tax rate was slashed on friday. The why the reasons brokerages have been seeing. They believe it can go up to seven or 8 . That. S have played out we are likely to open in the green. There were a lot of shots in the system. July, even the domestic institutional debt. The sentiment is boosted. The buying interest that has come back into the market across the board. Whereare two sectors money was flowing when the markets were trending lower. Lets see where we had today. Where we head today. Much. Thank you so life for us out of mumbai live for us out of mumbai. What part of this rally would you chase . What is the secondround impact of these tax cuts . The tax cuts are estimated to be five or 7 in addition to what the market was expecting. Be, how round would will companies and consumers react to the tax cuts . That could sustain this rally. What will be the impact on the bond market . You do have a large emphasis on points around gdp. I think all of us together, what we have seen so far in the last couple of days, price in the direct benefits from the tax cuts. The next round will be the secondround impact on the economy. India is suffering from is the consumer not spending. That is the second round affect your talking about. Do these corporate pay their workers more . That is the debate, naturally. Is, it generates more corporate profits as opposed to feeding the real economy . There was a big impact on consumers. In where we are with retail cetera, i would argue that consumers are somewhat cautious. Feel asmers dont optimistic as they should be, some of these tax benefits will be saved rather than spent in the second round affect may not be as significant as we hope. Yvonne how do we compare . You mentioned china. The s p, companies can save their tax payments and they have bought share buybacks. That is something that happened slightly less in asia. At the same time, you find u. S. Economy was already doing pretty well. The knock on effect was much more pronounced because companies were still optimistic. Whethercuts depend on the prevailing sentiment is cautious. , always good to have you. The biggest names in business and government will gather next week for the annual Bloomberg Global business in new york. Markets coming up as well. This is bloomberg. David lets have a look very quickly. We just had a check of what is happening in jakarta. Manila is down a little bit. It would be the longest losing streak we have seen in about 12 months. Singapore and also malaysia. Ahead of the open. Rishaad it is now that time of the day. Battle of the charts. David on your lets kick floor. Off in the 11th indian equities are back on the map after the government unexpectedly slashed Corporate Tax rates to 22 from 30 on friday. Analysts have been quick to cheer the move. They have bumped up early estimates by about nine percentage points. They are expecting profits between 20 and 25 over the next 12 months. Trading numbers on the nifty are at an alltime high. We saw them withdraw about 5 billion this quarter to september 19. After the tax cuts were i think looking ahead, what they want to see ecially rishaad what are you looking at . Chart as show you a evidence as to why the latest Oil Supply Shocks are not that much spooky for stocks in south korea. The kospi index continued to rally this month shrugging off concern. Answer. One lets take a look at the chart. Shows koreas total crude oil imports. In the middle, the shipments from saudi, the biggest crude supplier to south korea. At the bottom, you see shipments from the u. S. Significantlyd shipments from the u. S. What this chart tells us is that korea has diversified. Any impact. Mitigate in the past, korea has been one of the biggest victims of such Oil Supply Shocks. It is still on the list of economies exposed to oil shocks. This time around, maybe the pain is less than in the past relative to its own history. That should provide some favorable next step. B can make aion big difference when plan a has gone wrong. That is it for me. Rishaad you are highlighting that diversification is always the key and i will give it to you on that basis. You do get second place. There we go. Thank you very much. Lets have a look at what is going on elsewhere. Yvonne we are looking ahead to hong kong and are friday. A one hourfriday special, Stephen Engle investigates the cause of the unrest and looks for a way out with Prominent Players from all sides. Debuting this friday. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Taylor i am taylor riggs in san francisco. This is bloomberg technology. Coming up, pressure rises as some Board Members of wework consider ousting the ceo after the delayed ipo. Plus, snap to attention. The giant seems to be helping the federal trade commission. Plus, vimeo to become a publicly traded com