Lets look at constituent movers in regards to all this. This is the position we find ourselves in. The yield one basis point to the upside. Again, we are waiting to hear more with regard from washington as to whether they will be doing anything about trade flows into china. This story has been getting a bit of traction. 7. 12. Aussie 10 year yields have continued to fall back a little bit. Up a couple basis points. The story is the governor of the reserve bank. Keeping his cards tight against his chest, as it were, as we look forward to that Rate Decision tomorrow. 3. 7 . It was priced towards the bottom end of the race. That is the position we find ourselves in. Look atlong, having a some images just coming through. Yvonne what we are seeing here is ahead of the 70th anniversary in china which is the founding of the peoples republic of china. We have some pictures of chinese leaders laying flowers at a monument to heroes at Tiananmen Square on the eve of this national holiday. Take a look at the parades and what is to come here tomorrow. You are seeing a bit of that military might think showing off here today, the next couple days. As of course does golden week will have marcus shot until october 8. This is all coming at a time when he hong kong political situation is getting more heated. We saw another violent weekend. Probably one of the more violent ones we have seen in 17 weekends of protests. Jie zheng paying at least focusing on the pictures right now here in beijing. Jinping focusing on the pictures right now here in beijing. The 70th anniversary of the founding of the peoples republic of china. Well ase and navy as well as the regular army marching. We were talking about earlier. Some poor data for the worlds thirdlargest economy. Here is su keenan. Su we will be talking about japan. Factory production in japan dropped in august amid the global slowdown that has hit exports and left the economy vulnerable. Increasea sales tax this week threatens to lower demand. Production fell more than expected by 1. 2 asked 1. 2 from a month earlier. Declining a second time in three months. To President Trump now. He is calling for the democrat leaving the house impeachment inquiry to be question for treason and is also demanding to meet the whistleblower who complained about his phone call with ukraine. His tweets on sunday evening in washington are likely to prompt questions about whether the president is violating Legal Protections for u. S. Government employees seeking to expose unethical behavior. The you can is planning to present new proposals to break the brexit deadlock in the coming days after the conservative party conference. We are told the plan would set out a solution for the postbrexit border solution in ireland. Minister Boris Johnson intends to send the proposed proposals of brussels ahead of an eu summit on october 17. We are working incredibly hard. Workll continue to tomorrow and in the course of the next few days right up until october 13 to see if we can get this thing over the line. Su finally the worlds top iron is exporter, australia, cutting its outlook for global steel demand because of trade tensions and also because of slowing growth. The government reports threats are increasing as a range of downsides emerge. Painted. Orecast is as the trade war drabs on, growth and first global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. An official at the u. S. Treasury says there are no current plans to stop Chinese Companies from listing on american exchange. A day after bloomberg reported the Trump Administration is discussing ways to limit less investor access to china. Saw chinese september manufacturing pmi index rose to 48. 98, just slightly better than forecast. Start things off with the pmi reading. It was better than expected. At least some of it was. What does it all suggest . Selina economists do not see this as a recovery or stabilization. What is important to note is the official readings show chinas Manufacturing Sector still in a slowdown for the fifth consecutive month. Even though the number which focuses more on private and smaller firms came in better than expected, that is really just seen as a small, temporary uptick amid a very grim outlook of course we still have very weak global demand. A deepening manufacturing slowdown and japan. And the euro area. China domestically investments and retail sales growth has been slowing which doesnt show an immediate driver domestically to pick up the slack externally. Economists also expect pmi numbers to remain weak in the coming months with trade war as a big headline driver. Any further easing is expected to be subdued considering they are trying to keep stabilization and not run financial risks. Yvonne when it comes to this report that the white house is weighing options of restricting fund flows to mainland market, what has beijings response been like . Selina there has not been any official response in beijing but we did hear from the very powerful financial regulatory body over the weekend that they want to continue their Financial Sector opening as well as encourage Foreign Investment in china. China has made significant reforms in its Financial Sector over the past couple years, a variety of financial firms. Also seeing china open the door for fullblown vocal bank takeovers. We have seen the likes of ubs get approval to take over local joint venture banks and china. We have also seen china take steps to encourage more investment in global stocks and bond markets. Of course this is also an chinas self interest to encourage the Financial Sector openings despite the ongoing trade war. Chinas current account surplus has been narrowing dramatically. They need it now at a time when the u. S. Might send a very negative signal around the globe. Not to mention this has also hurt chinas ability to do international rishaad thank you for that. Great to see you. Hereimplications are there of china doubling down on saying there opening up and opening up even more. The u. S. Is considering perhaps curtailing outflows into china. The chinese reaction has been exactly that. They are opening markets up, they want to internationalize as much as possible. Intention is to attract. Ultimately the current account is not going to be a deficit this year but they need the flows to continue to compensate for outflows. I think it will be a big blow if this actually happens. It is a new front on the trade war if the u. S. Implements it. There is no guarantee that that will happen. Clearly we are still going to be watching trade talks next week, which hopefully prevent further escalation in terms of the tariffs and other types of measures. To be frank, the u. S. Has a number of different avenues up its sleeves, including export controllers used very frequently now. We focus on tariffs but there are so many other steps the u. S. Is taking. And this would be a new front. I think it is still a long way off before this type of measure is implemented. It is very hard to implement itself. It is not an easy thing to stop flows into china and the wait u. S. Would want. Yvonne and the treasury has tried to dispel some of these claims but not all of them. Im wondering, does this force you to rethink your forecast on renminbi . Mitul it certainly would. If this was a step implemented and it is affected, it could have a major impact. U. S. Investors are clearly major investors in chinese bond markets. We just had news last week that chinese bonds were not included in the wg i index. That was a little bit of a blow. Included inhina was the Bloomberg Global ag. That should have met global inflows into china. If not, it will have an impact on our forecast for the weaker side. Rishaad ok. How weak . Mitul good question. I think if we look at the estimates of flows into china, the index inclusion is somewhere of 5 billion to 6 billion each month. Investorsreign equity have put in huge increasing amounts into chinese equity markets. If that flow was curtailed in any way, there is a big risk that you could see a bigger slide. The magnitude is difficult. The magnitude is difficult. We have not done calculations on this as of yet. But you could see rmb weaken a few percentages more than has been anticipated. We still expect some weaknesses as it is but this means forecasts generally will be much weaker than we had anticipated. Yvonne alright. Stay with us. Ahead, budweiser goes down well in hong kong. More on their debut and outlook. Rishaad next, a head of chinas national day, hong kong seeing one of the most violent days of protests. We will have the latest developments. This is bloomberg. This is bloomberg. Rishaad this is the day before the 70th anniversary of the pboc, the founding of that. This is currently what we are seeing. To the heroes at Tiananmen Square. Of course the wreathlaying ceremony. Yvonne there you have it. The laying of flowers at the monument of heroes at Tiananmen Square. President jie zheng paying observing the heroes. President jie zheng payinge2 could be plenty of fanfare but also domestically speaking and internationally speaking china facing rishaad couldnt be much more of a contrast what is happening literally yards away. Another weekend of protesting. Hong kong police using rubber bullets, tear gas and Water Cannons sunday, clashing with demonstrators. One of the most violent days of protests in months of this continued unrest. In the Stephen Engle is city center for us now. What will happen tomorrow . Tomorrow is the big day because yesterday of course was more violence. Towas a band rally trying march towards the Government House behind me. It was met with stiff resistance from police. We have seen footage of the pepper spray being shown. Weekend of ther last 17 weekends in a row, it truly is rally, rinse, repeat. This whole place has been cleaned up. Earlier this morning there were remnants everywhere. Gogglesand helmets and and broken pieces of the public infrastructure. It has all been cleaned up and the cities back to work for this one day. But tomorrow is a Public Holiday and the weather is good. Even the police have rejected the application for the planned demonstration on october 1, the expectation is more people will be coming out. It will not just be the violent extremists. Babies be families with and strollers, grandparents like what we saw in june. Will it get to those numbers . No one can predict. But there is still Resistance Group ofom a Large Society against the governments perceived infringes towards their demands. Engle will ben out on the streets as well tomorrow covering what goes down. 17 weekends of protests. When you look at dollar hunky, at what point will they continue to defend the currency and at what cost will they continue to defend it . Mitul i do not see any risk to the peg. Major decision for them to continue to defend the peg and i do not see any change in that. Thereality is as you say, demonstrations have a going on for 17 straight weeks. Clearly there has been some outflow from hong kong because of this. But it is still very well defended and the ammunition is still strong. The resolve remains strong. It is unlikely that will change anytime soon. We have always had the view that over the medium to longterm you will see some sort of move towards both the rmb and hong kong dollar having some sort of potential reunification or something similar to that, but that would need to be at a point where the Financial System happens in china. All of this is a long way off. Hong kong come of the peg has gone through so many crises in the past, i do not see any change in that. Just stay with us. Going to talk a little more about what is going on. Just want to get over to the Hong Kong Monetary authority. A press briefing at the moment. It is in cantonese at the moment but we will try to get you a translation. Thing certainly, which may not be under pressure. Some people say it was designed for external crises, not domestic one. Anen that, it is International Event him anyway. How has it affected the prism in which you are looking at this part of the world . Certainlyean, i think investors are seeing this is much more isolated to hong kong. You look at does it have an impact on risk aversion and asian assets in general. Clearly it has not. Isolated towards hong kong and of course china. It has not had a more profound impact on other regional markets or on risk sentiment in general. This just asue another uncertainty is to this plethora of issues that the world is facing and risk assets are facing. In itself it has not had major impacts on the rest of the region or Investment Decisions towards asia. It does have some impacts on allocations to hong kong. If you invest in hong kong or other countries. Singapore some extent may have been a beneficiary. But i think it is still early days to say if they had a more sustained impact on hong kong. Wearly we have to see where demonstrations and up and whether they can resolve. But as i said, it still seems to be quite isolated. Yvonne it seems like what drives your world is still what happens to renminbi. We have seen that correlation with dollar china to the rest of e. M. Premuch close to a record, that correlation. Where should we be avoiding at the moment . Mitul i think in a sense the yield assets and asia still look reasonable. You want to avoid anything with the trade impact that is still worrying. We had the pmi which showed contraction continues. But i think most of this is based on trade hopes. We went to see entree discussions in the next week or two to see where they pan out. Still a long process to get any real deal done on trade. In the meantime asia will suffer from global weakening in global trade as they are seeing from the u. S. And europe given the weakening economies. That is a big an impact on exporters like korea and taiwan and singapore. We are seeing fiscal policy injections. Trade countries in the region are still the ones that are more vulnerable. I think a lot of pain has already taken place in these markets. But i think there is still some pain to go. Rishaad thank you for that. Stick around if you would. Just have to get through this. He is addressing the immediate. Tiananmen square, going to leave you with those pictures. Yvonne here are your latest business flash headlines. India has banned the export of all varieties of onions after Retail Prices surged to more than one dollar a kilo. Onions are a key ingredient in many dishes, making this a sensitive political issue. The government will continue to monitor prices and consider strict pricing against hoarding and profiteering. Rishaad set to meet monday to decide on the fate of executives implicated in a botched spine scandal. Coo was involved in the authorizing of surveillance of former executive. Under the fear he would poach colleagues after saying he would move to a rival. Companies as we get to the japanese lunch break making waves. To the downside. The most in nine years. Developing a treatment for alzheimers. The graft scandal continues to deepen as well. This is bloomberg. This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. I am su keenan with the first word headlines. We start with chinas factory output. It improved in september although it remains in contraction. Better thanat is the 49. 6 seen in the bloomberg survey. Services continue to show resilience. President is calling for the houseats leading the to be looked at for treason. The euro zone, the eurozone has taken another hit as far as confidence as concerned. Confidence in the industrial sector fell to the lowest level in six years amid increasing trade uncertainty. Aboutrs are worried consumer demand and less likely to hire new staff. The overall measure of the sentiment is that is weak this is at its weakest. Warnedrown prince has that war between his country and iran would lead to what he calls a total collapse in the Global Economy. A peaceful solution would be much better than a military one but unless the world takes action against iran, it will likely be further escalation and he predicts oil prices would jump to what he called and imaginatively high number. The region represents about 30 of the world energy supplies, about 20 of global trade passages, 4 of the worlds gdp. Imagine all these three things stopped. A total collapse of the Global Economy. 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. Lets have a look at what is going on currency wise. The yen with the global risk keeping yen the bulls happy. The yenerg survey sees outperforming its peers by the years and. Years end. The strength indian has not materialized the strengthened yen has not materialized yet. He has been calling for that for a while. Mitchell, we are getting close to that quarter and when it comes to dollar japan. Is this still the best risk off hedge right now . Is in terms ofch fx markets. Remaind swiss francs attractive risk off currencies. Japan still has a massive net foreign asset and every time you do see risk aversion pickup. That is why the forecast continues to suggest more upside for the yen because there is a concern that risk aversion will continue to intensify. The boj does not want to stand by while this is all happening and there is a risk they may move at the october meeting. Things are moving in that direction. Trend. Nomys above with inflation still not really moving anywhere the target that we will see the boj react by easing policy. Yvonne what can they do, though . Out of all of the g10 central banks, i am guessing the boj is the least is the one with the least amount of bullets right now. The boj has been pretty advanced in terms of the initial measure it, lamented. It tried to do measure it implemented. The problem is, they are running out of ammunition. They have already started to cut back their purchases, yields are moving lower. They still have a massive impact on volatility. Their worry in whatever they do is the impact on japanese banks because two negative rakes rates. They are careful on what will need to do. You may see lower interest rates, perhaps picking up some asset purchases. On the margin, it may have an impact. Inflation where they want it to be when you have so much demographic factors pushing lower on inflation . It seems unlikely, in my view. Rishaad the hardest currency at the moment to really predict, but i will ask you to do it anyway. The pound. I was going on holiday yvonne is going on holiday next week to britain, should she be buying the pound now . It depends on your investment horizon. I will not duck out of the question. I was in the u. K. Last week, things are cheap. U. K. Seems cheap and there is a lot of demand for real estate. You can see foreign demand picking up and you can see sterling in the longer term. I think it will do pretty well. We have such uncertainty in the u. K. Saunders hinting at lower rates. The reality is that we will see more volatility. You can get better levels to buy sterling for the longerterm. Sterlingk eventually, is a good buy. Last question. When can we call this is harder. I do not think we are near a top yet. Index weight ed is at 2. 5 year highs. Dollar is attractive as much as the u. S. Administration does not want the dollar to strengthen. The reality is, we will still see more upside for the dollar in the next few weeks, perhaps even months before we start to see a turnaround. The markets are pricing in a lot for the fed already. Yvonne thanks so much for joining us this morning. Tracking, we are Budweiser Brewing now trading at 4 . For the debut. We will discuss the outlook. This is bloomberg. Yvonne to give you some live pictures with the Hong Kong Monetary policy chief. This is his last briefing before he steps down. Talking about the political unrest in the city. Saying that property sales and prices have slowed down. He said despite the unrest, Hong Kong Financial markets to remain stable. Swansong essentially. Lets looking lets look at what is going on with the big ipo, Budweiser Brewing. Yvonne lets get to the stock exchange. Rishaad 1. 2 . Rising more than 4 and topping and analysts are saying more upside ahead. Of debt bernstein coming through with an estimate of 30 hong kong dollars. Budweiser asia is the highest quality consumer stock in china. Given its superior growth and returns and brand portfolio. Multiple of about 17 times, that makes budweiser asia the second priciest beer stock in the world. Growth potential, 15 organic growth for budweiser asia in 2020 with chinese consumers increasing their taste helping to driving helping to drive that growth. There could be more potential when it comes to acquisition after this listing. Investors will likely refocus going forward. The share sale is a boom for the hong kong stock exchange. After a very enthusiastic ringing of the gong and toasting to the listing with beer. We saw a lot of enthusiastic reactions from investors and that is why we decided to do the listing. These are challenging times in hong kong but we are very confident that there is a strong foundation. We are very optimistic with a Bright Future in hong kong. Looking to expansion in the region and saying hong kong gives budweiser asia the way to do so. Rishaad thank you, sophie. It was surprised by the alacrity of it. Welcome to the program. Second time lucky. Priced to sell, certainly at the moment as an absolute flyer. Do they bring more shares onto market . Typically, in order to support the price on the downside so they will probably hold back on that, in my view. This ipo is about getting a currency that they can take to market and that is where they are getting to. Rishaad they want to do more m a . They have really reduced the debt burden by selling the tralian business that business. Bringing this ipo market brings it down another. 25 times or so. The wolf is away from the door. It is business as usual, which is m a and dealmaking. Yvonne this new dividend policy. The pe is higher as well. Incentivesally more for investors . I find it a hard stock to buy and to recommend to my clients. We initiated this morning with a target price of 30 per share. That gives about 10 upside. Understood is a well company and investors understand the quality nature and the earning certainty and that is why they did not leave a lot on the table. I really do not see a huge amount of upside over the next 12 months. Yvonne you mentioned about the dealmaking. What are some potential targets . Down to pricing. By far the most attractive target in the region is san miguel and the philippines. In the philippines. A classic emergingmarket growth story. I think that would be a real coup if they were able to bring that to market. Having an attractively priced listed equity in the region will be critical for that. That is something the san miguel it could be a compelling prospect for them. Privately. owned a little less than that. Also publicly listed. The focus is on the brewing company. It is 51 owned by san miguel food and beverages and 49 owned by kirin. Rishaad i was looking at the wrong one, sorry. This is the fastestgrowing part of the world for alcohol, for beer. Rates are wegrowth looking at . We are looking at high single digits, 7 or 8 revenue growth. That is taking into account material current see headwinds over the next currency headwinds over the next 12 months or so. Very strong. It is not so much about beer volume growth. It is about revenue growth. I think the volume growth in most of the markets in china is really going to underwhelm overall. China is really about not trading from the lower end beer and trading into Branded Products like budweiser, heineken, carlsberg. Yvonne how does Budweiser Brewing fair compared to others . 72 of their earnings come from china and they have the Strongest Division in china. Share of volume pull in china. Pool in china. I am talking geographically. The business is very leveraged toward china, 72 of earnings. Korea has the remainder. Jan that, they do not beyond that, they do not generate a lot of profit from india or vietnam. The business is in new zealand and japan are very small. The big gaps they would like to feel would be around san miguel and the philippines and potentially vietnam. A little bit more fraught with challenges of getting a vendor who has just paid 27 times ebita. Flieswill be a few more in the ointment but it will be on their to do list. Rishaad we will get you want to game when you decide to change your Market Performance rating. Executives atp Credit Suisse hanging in the balance. Scandal, next. Ng this is bloomberg. Rishaad just under 55 minutes to go before india gets underway. In mumbai after the week that was on the market rally after that tax stimulus coming through. How are we doing this brandnew week . The stock can be slightly more subdued. Its session closed timelready now is the for some of those to get unwound. We will have to wait and watch. 11,500 for now is the Pivotal Point for the index. The nifty bank, 30,000 is the psychological mark. Expected in some of these banks. The energy space is something we need to watch out for. We will keep out on the energy space. Big week for the r. B. I. Meeting. As far as stocks, what is on your radar . It is a smaller bank but it was on the news. On the back of the debt pileup an insufficient funds. That will have a sentimental negative impact. That could see a bit of a tuneup in terms of the valuation gap. Thanks. Lets have a look at the business headlines. Companynese pharmacy plunging. Thecompany announced alzheimers treatment missed targets. Otsuka could face more than a Million Dollars in writedowns if they have to give up on this drug. The banks interim ceo is seen as another strong candidate. Key consideration an experience in asia where hsbc generated most of its profit last year. Credit suisse is approaching a crucial decision on management. The banks board is set to meet later today to decide the fate of executives implicated in botched spying scandal. Ushaad our next guest joins with a look at what we will see next and what is really quite an unfolding drama, is it not . It is. It certainly is. We are expecting the chairman to decide on the fate of the Credit Suisse executives involved. This according to a person with knowledge of the matter that bloomberg spoke with earlier. An oldthis stems from occasion of the swiss press reported on. A former banker who was set to join rival ubs tomorrow as the cohead of wealth management. Credit suisse hired an Investigative Firm to shadow him. This led to an altercation in downtown zurich. A storm of Media Attention has followed and Credit Suisse was forced to launch its own internal investigation. They get to decide at a Board Meeting who ordered the operation and whether any policies were violated. We will hear from the bank as soon as tomorrow. How are the Bank Shareholders reacting to all of this and do you think anyone is likely going to take responsibility . Candace it is not clear what the final decision will be. We understand that the board is leading towards sparing the job of ceo. The top shareholders expressed support for the senior executive. The biggest investor has urged the lender to let the crisis blow over. It could be damaging to Credit Suisse and its stakeholders to lose any member of the Senior Management over this issue. Another shareholder said we hope that media reports are not overly influencing the board of directors. Having said this, Credit Suisse investigators have been honing in on the role of the chief operating officer. Was involved in authorizing the surveillance. All will be revealed later today after the Board Meeting. Yvonne thank you. Joining us out of singapore. A bit of a caution. A pretty good debut. Ishaad 4. 25 the last time checked on it. Quite something. The hang seng is up one quarter of 1 . Yvonne it is almost 11 00 in the lion city. We ended the last tower of the morning session. Beatingfactory output expectations but remaining in contraction. Beijing mesh there are reports the u. S. May consider restricting fund flows to china. Rishaad the scandal sees Goldman Sachs in court. This is bloomberg markets. Haslinda it is a pretty overtors mole over mull the potential of the u. S. May impose limits to china. This is in the lead up to the five day holiday coming up in china. We have the asia pac index currently down by two tens of 1 . The question remains, where china goes from here. 49. 57. Ng in at it is still in contraction. The u. S. Considering cuts on those investments into china. Falling input august. Growth increasingly dependent on Consumer Spending. Of course, that is now in question. Trend, up by four tens of 1 . Take a look at where currencies are at this point. , on the softuan side going into the weeklong holiday. Whether that will happen, that remains to be seen. 107. En is a haven play at 94. Morgan stanley most bullish given the yen gaining by 6 . The strongest currency in asia this year, 30. 55. The weakest currency in asia,. 27. Korean won, 1199 minutes away from the start of the session. We did see a fallback at the end of last week. Overall, net positive. Announced, when modi those tax cuts, Corporate Tax cuts when set that sent the market on an absolute tear. Less in a little bit of arrange. The rupee strengthening. Yield at 10year 6. 73 . A couple of basis points down. While the expected to be doing more in terms of widely expected to be doing more in terms of easing. There you have it. The open will be a long and about 42 minutes. Havehere in the world, we the tortuous efforts by britain to leave the eu. Lets get that story. The u. K. Government is planning to present proposals to break the brexit deadlock. In ireland,or these an issue that has loomed since 2016. Boris johnson plans to send the proposal to brussels. And wee is a good chance are working incredibly hard and i will be in every conversation and we will continue to work d in the course of the next few days. The eurozone has taken another hit with confidence in the industrial sector falling to its lowest level in six years. The latest European Commission survey shows industry managers increasingly worried about customer demand and less keen about hiring new staff. Production and japan dropped in august. The sales tax hikes lower domestic demand. Production fell more than expected, 1. 2 . Declining a second time in three months. 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 rosalind chin. This is bloomberg. Rishaad an official of the u. S. Treasury says there are no current plans to stop Chinese Companies from listing on american exchanges. Bloomberg reported that the Trump Administration is discussing ways to limit access to the country. Lets bring in our china correspondent selina wang who is in beijing. What does it suggest . Not seenomists do the slightly better than expected numbers as assigned of recovery. The focus is the official pmi rating. In contractionary territory for the fifth consecutive month. The Employment Data in the 13th consecutive month in contractionary territory. These numbers are expected to weaken over the next few months over the trade war. Domestically, retail and investment have been slowing but there is no domestic driver to pick up some of that external slack. The pboc has been stepping up some monetary support. Any additional stimulus expected to be very moderate. The pboc is trying to prioritize stabilization and avoid any runup in financial risk. Haslinda we hear the Trump Administration may restrict fund flows to mainland markets. What has been the response . Selina there has not been any official response from beijing so far but over the weekend, we did get a statement from chinas very powerful and important financial regulatory body saying that china wants to continue its path of financial opening and wants to encourage Foreign Investment in china. China has made significant reforms in the Financial Sector over the past few years, including scrapping some ownership limits on securities, mutual funds, and insurance companies. Regulators have opened the door to fullblown acquisitions. Ubs, jp morgan all receive approval for full control of their local joint ventures. China has made moves to make it easier for Foreign Investments and chinas local stock. Despite this escalating rhetoric and the trade war, china has an incentive to keep continuing the path of financial reform. China needs these fund inflows to compensate these outflows. Narrowednt surplus has and the u. S. Taking action would send a negative signal to Global Investors that the tie at a time when china needs these funds most. The most extreme risk for china. Selina wang in beijing, thank you so much. Cioing us is the regional at ubs Global Wealth management. Pmi assessment we have a that is still in contraction and we have this risk about possibly limits on investment and inflows. When you take a look at the , andion, the yuan gaining you say it is not surprising. The numbers reflecting the fact that because of the monetary measures and because of the tech cuts tax cuts, those measures have helped bolster the Manufacturing Sector. Manufacturing is a lot more than what they would be. I do expect the numbers to be resilient. Post october, november and december, that is where the real crunch comes in. Haslinda what is more important to traders . Pmi . If on october 15, the tariffs come in, it should be negative. It has ait bigger impact on the Global Economy than what is happening right now. Rishaad kelvin, how would you say all this data translates to what is going on on the ground currently . In china . Calvin on the ground, there is people expecting the worst. They are preparing for the worst as well. Toyre building up inventory prepare for the worst. The worst is that the tariffs will come in. The Chinese Government has been trying to boost the local economy. At note looking proactively pumping into much credit and they do not want to repeat of what happened in 2013. There was too much credit and the Property Market built up into intolerable levels. Rishaad where do we go from here . Whose fault is it . Deal . E cannot get a i do not think it is anyones fault. A lack of empathy on the part of both parties. This will ratchet up the tension. It is part of the u. S. Administrations move, to put ahead ofon the chinese the october celebration. You do not bring the other thing in the picture and say it is a package deal. Haslinda given the current landscape, you are underweight stocks. Why . It has really gone up a notch. If you look at devaluations, it is not as attractive as before. You have all of these uncertainties coming in. If the tariffs come in october if the trade negotiations turn to the worst, if the Federal Reserve does not cut rates in december, this will point this is one of the reasons we are weak on stocks at this point. Haslinda the assumption that the fed still has ammunition . Basis, thertterm u. S. Stock looks pretty good. 80 of the companies met expectations. Indicators,nomic they are indicating the economy is quite resilient. Us whethershow august was just a blip or the start of a trend going for. Unemployment is starting to show signs of weakness. Haslinda data dependent. Kelvin, thank you. E will be live in Kuala Lumpur Hong Kong bracing for more protests as china marks 70 years of the peoples republic. A look at the International Fallout on the way. Haad we are back with Hong Kong Police using tear gas and Water Cannons. On sunday, they clashed with demonstrators in one of the most violent days of protesting in four months. What has been happening . What is the forecast for the Public Holiday here tomorrow of therating 70 years prcs establishment . Week,na enters the golden the first week of october. They celebrate the 70th anniversary of the founding of the peoples republic of china. It will be quite a different celebration here tomorrow in hong kong. They have already canceled the Fireworks Show that they normally have on october 1. The mainplied protest organizers are appealing the decision by the police two the planned rally tomorrow tp ban the planned rally tomorrow. Be probablyn would quite a few people will be likeng up despite the ban they did yesterday. Yesterday evening, it turned quite violent. This is the epicenter where it all happened last night. It has all been cleaned up now but perhaps this is the calm before another day of rallies. Who knows what will happen tomorrow night . Last night, it did turn violent with the police using Water Cannons and rubber bullets. Stormotesters tried to the building behind me. Haslinda carrie lam is expected to head to beijing for celebrations. I think xi jinping is preoccupied with the national day of celebration with the big parade. I would guess that they would probably have some time to talk. There will be a large contingent going from hong kong to beijing, 250 or so strong delegation from hong kong going along with carrie lam, including, i just ran the list of people. A developer, the secretary of the newe former Peoples Party chairman, a couple of business people. The former secretary of justice. The chief secretary will be in charge tomorrow as the number two to carrie lam. She is planning to come back tomorrow night to hong kong. She probably should not be a way too long. If things get out of hand tomorrow, she would not want to be out of the city too long. Rishaad all right, steve. Stephen engle for us on the streets of hong kong. The protests do rage on. Jodi schneider joined this. Tell us about this. What would it mean and what is it meant to protect . The Senate ForeignRelations Committee and the house have advanced this legislation would would which would require regular assessments of whether hong kong is sufficiently autonomous under the current law from beijing to justify that unique status, the unique trade status. There has been bipartisan support for moving us forward, although things do not always move forward as fast as people would like and congress is on recess this week. The other thing that would allow, the president report to congress on any Human Rights Violations occurring in hong kong. This has been pushed by protesters. Joshua wong went to washington to support this. Beijing opposes this and says it will oppose any efforts of the u. S. To get involved in the affairs that belong to china. We will see what happens. There is bipartisan support. Islinda the other issue President Trumps impeachment inquiry. What do you expect in the coming weeks . The phone call between President Trump and the ukrainian leader. What is the latest . Staget is taking center in washington in the house. Adam schiff, the chairman of the house intelligence committee, a democrat, has said they expect to hear from the whistleblower very soon. They are trying to work out the arrangements for that. The Inspector General will have a closeddoor meeting about when they can move forward. It will be closeddoor testimony to lawmakers. The whistleblower, allegations made public this alleged phone call between President Trump and the ukrainian president , which President Trump is said to ask for an investigation into joe biden, a political rival. There is also allegations from the whistleblower about whether the white house how the white house reacted when this came forward whether they used whether they saw to shut down making public this phone call. Schneider, thank you so much. In europe, if you are a bloomberg subscriber, you can catch up with all of our interviews using our interactive function. You can also join the conversation by sending instant messages. Check it out, tv , this is bloomberg. Haslinda welcome back. Lets do a quick check of the latest business headlines. Reports from london say bob dudley is preparing to step down in the next 12 months. He took the reins at bp after the 2010 deepwater horizon disaster and has focused on restoring the company. The explosion in the gulf of mexico killed 11 people. Oft bp facing billions dollars in legal costs and damages. Includes citigroup and rsa insurance. That is according to the u. K. Sunday times newspaper. The interim ceo is seen as another strong candidate. The report says a key consideration, his experience in asia. September is on track to be a record for foreigners buying a shares. Overseas investors had injected more than 9 billion into the market by friday. The shanghai composite index is heading for its first monthly gain since june. Time for the stock of the hour. You are the man of the hour looking at a shipping stock. Rishaad cosco on the way down, 20 . This is the position we find ourselves in. These trade concerns are certainly playing out definitely. 20. 4 to the downside. A lot of news surrounding what has been going on. Social media volume increasing. Global oil freight rates falling. Quite actions hitting lot of these the parts of these industry groups. Also topping the charts there we go. 25 million shares. 1300 more than they would do normally. That is it, cosco, the stock of hour. Hour. Haslinda for the lion city, this monday has been gloomy. 11 30 a. M. In singapore. We are in the middle of the trading day. Is the government does not need extraordinary measures at this stage. Confident they are saying some form of growth in sectors like technology, financial. For now, no need for any extraordinary fiscal measures. Saudi crown prince has warned that war between his country and iran would lead to a total collapse of the economy. A peaceful solution would be better than a military one. Oil prices would jump to unimaginably high numbers. Represents about 30 of the Worlds Energy supply. 20 of global trade passages. About 4 of the world gdp. Imagine all these three things stopped. This means the total collapse of the Global Economy. Orehe world top iron exporter is cutting the outlook for global steel demand. The Government Support says threats are rising. Top dealmakers are painting a bleak forecast. Minister is making a lastditch effort. Elections this month produced a parliamentary stalemate. Elon musk is announcing a new rocket designed to carry a human crew and cargo to the moon or elsewhere. The venture is expected to make its first launch in the next few weeks, climbed to about 20,000 meters before landing back on our. 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. Chin. Osalind this is bloomberg. Rishaad lets have a look at what is going on. Bag of equityd movements. The hang seng on the upside. Budweiser brewing successful debut. Kospi moving higher. The nikkei, at the moment, the lunch break. It is down at the moment by half of 1 . Whammy, theouble trade war adding to the downfall of the nikkei. We do have industrial output numbers which were a reflection of the state of the Global Economy. Much weaker than anticipated. Looking elsewhere, indian markets, as we had for the moment the open. The rupee has been stronger, the dollar pulling back. 10year yield on the indian sovereign. There you have it. That is the current position we are in and the asiapacific. Up more than 7 . Credit suisse is approaching a crucial decision on management. The banks board is set to meet later today to decide on the fate of executives implicated in a botched spying scandal. Our asia finance managing editor joins us. What are we expecting . Where do we go from here is to this Board Meeting and we are expecting the chair to make a decision on the state of the Credit Suisse executives olved in basically decided that is according to a person with knowledge of the matter. All of this stems from an atercation centered around former star banker at Credit Suisse and is set to join ubs. Credit suisse hired a private Investigation Firm to shadow him because they were worried he might try to poach some of his former colleagues. This led to an altercation in downtown zurich. It prompted Credit Suisse to launch an internal probe. We are looking ahead to the board discussing the results of expecting and we are the chair to make a decision about who ordered and whether any policies were violated. Bankad how are the shareholders reacting to this huge enveloping drama . Not clear yet what the final decision will be but what we understand, the board is leaning toward sparing the job of ceo. That is because top shareholders have expressed support for Senior Management. Harris associates, the biggest investor in Credit Suisse, has urged the lender to let the prices low over the crisis blow over. Rick sandler, another shareholder, has said, we hope media reports are not overly influencing the board of directors. Bloomberg also understands that the Credit Suisse investigators have been honing in on the role of chief operating officer. We are told the investigation shows he was involved in authorizing the surveillance. For now, we look ahead to todays Board Meeting and what we hear from the bank after that. Haslinda unfolding drama. Joining us here in the lion city. From Goldman Sachs are in court in poor today. And kuala lumpur today. It has filed criminal charges against more than a dozen current and former executives. Law enforcement in the u. S. And singapore are investigating. Cofounder andthe programs director and research firm. Stage, how satisfied are you in the way the government and judiciary have handled the case . It has been going on for over a month now and on the heels of the trial. Not any criticism to how the judiciary has handled the case. There is no inkling of any kind of political interference. Is looking at the case that it is being ran properly. With. Not been tampered the defense team has been able to procure the evidence. Respectus issues with to the integrity of the court so far. Suggest the findings witnesses and governance. Witnesses in governance. To what extent has the current government done that . The government came into power on the back of promises to investigate the issue surrounding. And to reintroduce the rule of law. The government is making Good Progress in these areas. Theyve appointed judges that seem to be impartial. A lawyer topointed become the attorney general. Ahead, theng year challenge will be to extend these reforms in terms of other areas, particularly in terms of appointment of key government officials, selecting committees to appoint people who might had organizations like anticorruption agency. It is still a long drawn out governance on reforms, they seem to be making decent progress. The public, in large, are quite happy with it. By and large, are quite happy with. Rishaad it is the right thing to do at the end of the day. In terms of political interference, people do not see any of that taking place in the moment. Tell me what the next steps are going to be. See if theant to trial starts to evolve, Goldman Sachs official people want to process andtigative everything brought to court to show allegations of complicity and where they have gone wrong. The media reports that the Prime Minister of malaysia has already made a statement that he has not accepted an offer by Goldman Sachs to pay a billion ring at ring get. Saying that malaysia deserves more compensation. We will see how far this Legal Process goes through and to what extent they can shore up their forward how we carry from here. Whether or not the Prosecution Team has the capacity to execute a strong legal case. This at there does of the day leave the problem with the Prime Minister is that he is in a tough situation. If you look at his legal battles to date, the first case involving the subsidiary has theluded and we are waiting verdict in november. Judging by how the case has proceeded, there are indications that some wrongdoing is going to be found. Therefore, we are looking at possible extension of the legal case into appeals. If we look forward into the future, the former Prime Minister looks at this legal situation as part of his ongoing political battle. In the sense that he is trying to maintain support and therefore, despite the setbacks and some type of damming evidence, he has been able to continue to get public support. Especially from supporters of the old ruling party, the current opposition party. He is hoping this case will extend into the next political cycle where a change of government could improve his fortunes. Haslinda he has called for doigations into how you see that happening and is he ongesting the crackdown corruption has not been done all that well . The ecr l project try to come up with amicable deal that would allow the project to move forward so it does not incur penalties with china. We have to live with what we have got right now. They have already negotiated the matter. Government is the going to revisit every single deal that has taken place under the previous demonstration. The government has triage in place and is going after highvalue projects that have high cost and in normas implications enormous implications. As far as the anticorruption measures, it is a work in progress. Haslinda just too much on his plate. Thank you so much for that. Rishaad lets get to the indian markets. A couple of minutes away. A bit of a move to the downside for the nifty. Mumbai is next. This is bloomberg. Haslinda welcome back. India has just joined the training date. Through what you expect. It does look like a positive start. Muted, i would call it. Week. Percent last up 2 last week. Traders will be watching out for the 100day moving average. The rally we have seen in the last 16 days. Nifty is the one where some selling pressure is visible right now. For the broader market, a little bit weak as the nifty 500 index trades with 20 points as of now. Traders and investors will be taking cues from the policy, which is friday. Rishaad one eye on that and the bond market will be affected by that. Lets get back to equities and some of the industry groups. A whole list of stocks. Bank it the typically means the bank cannot lend to corporate, they have highlighted week asset concerns weak asset concerns. That particular plant salesbutes 25 of u. S. And that is the reason why the stock is down. They are the largest shareholder in the promoter of the company now. Rishaad thank you. Lets have a look at the latest business headlines. India planning the export after Retail Prices soared more than one dollar per kilo. A key ingredient in many indian issues and making the price a sensitive issue. The government will continue monitoring prices. Japanese Pharmaceutical Company plunging the most in almost a decade ago. A trial for its latest alzheimers treatment missed targets. , they could face up to a billion dollars in writedowns if they have to give up on the drug. Australian Agricultural Company surging after selling its Crop Protection assets for 800 million u. S. Dollars. The company has been offloading units in brazil, argentina, and chile. Reduce it will use the money to bring down debt and shift focus to its operations in north america, europe, and asia. American fashion retailer forever 21 has filed for bankruptcy protection. Liabilities between one billion and 10 million. They will keep operating while it works out a plan to pay its creditors to turn the business around. Threat coming up, ab invev Asia Division soaring in its trading debut in hong kong. Improve the prospects for the ipo. We are heading to the stock exchange, next. You are watching bloomberg. Rishaad you are back with bloomberg markets. The secondbiggest ipo in the world so far this year. This is budweiser stock, 6. 1 of. Up. This is the companys debut providing a boost to what has been a lackluster global ipo market. The beer maker, second time lucky. Second attempt at this hong kong listing. Having beer all around. Morning, ahares this beer being served, folks sipping on corona ahead of the ringing of the gong. Second time lucky for budweiser asia after shelving plans to list earlier. Debut. Rs cheering the the share prices have topped its ipo price. Analysts are saying are seeing upside. Bernstein, 30 hong kong dollars on its superior growth returns. A brand portfolio that makes budweiser asia the highest quality consumer stock in china. Based on the 2020 at beta multiple even top multiple, it makes the stock the secondmost expensive beer name in the world. Boon for thee is a Hong Kong Exchange after a summer drought when it comes to ipos. Here is what the ceo had to say about listing in the city. We saw a lot of very enthusiastic reactions of investors and that is why we decided to do the listing. These are challenging times in hong kong but we are very confident that there is a strong foundation. We are very optimistic with a Bright Future. Optimism from the budweiser asiapacific ceo. China, southth korea. What type of Growth Potential is expected . Listing, the budweiser asia ceo of the company will focus on growth, admission that was made more streamlined after the sale of its highgrowth but lowmargin australian highmargin, low growth australian. Ahead, Bloomberg Intelligence is calculating 50 inwth in 2020 15 growth 2020. 46 eiser asia currently has of the chinese premium beer market. If a push into the northern and southwestern territories on the marketd, that could be penetration. Haslinda thank you so much for that. Here is what we are watching this week. Japan looks set to raise it sales tax from a percent to 10 . Taming its debt load and paying for an aging population. Policy onll decide the same day and it is expected to deliver another cut. Hong kong Regional Sales data is expected. On friday may rates and u. S. Jobs data will show how the economy is holding up as Consumer Spending becomes the main driver for the expansion. Rishaad absolutely. The reserve bank of india out with its decision. Like, theat it looks hang seng up by half of 1 . Notid have that it was as bad as anticipated. Of pmi showing the health the chinese Manufacturing Sector improving. Tokyoalso have the opening. It continued in that vein. Of theected the state slowing Global Economy. We have the lunch break in hong kong. Bloomberg daybreak middle east is next. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Announcer the following is a paid presentation brought to you by National Debt relief. Are your credit cards maxed out . 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