Moment suffering from poor auto news from the u. S. Lets look at the topix auto and equipment index, which is leaving things down 1 at the moment. We are looking at financials as well. This is where the main drag is coming from the aussie market. The government issued this broadside to banks. They cut Interest Rates, but they dont pass those cuts down to the customer, if you will. Warning shots across the bow. 10 year yields, looking closely at what is going on in the manufacturing position not much going on, bund yields klein byet yields but yields climb below. They are perhaps ratcheting the expectation forward. New york crude up 1 . Barrel. , . 18 per we have this hurricane in the north atlantic. Affectingthe moment, shipping lanes. That is why we have the price of crude being affected by that. It looks like it should slide into ireland and the u. K. As well. The weather factor is playing a role in this, too. Lets have a look at what is going on first word newswise as we go to new york and join su keenan. Su we start with the Global Economy, which is flashing clear warning signs, as new data across the globe shows manufacturing stuck in a slump and sentiments lighting. A closely watched u. S. Factory index unexpectedly dropped to the lowest since 2009. The bellwether south korea had a falling consumer price, and the rba cut rates to a record low. Finally, the wto cut its forecast to the lowest in a decade. Nissan led the was auto sales race u. S. Auto sales race last month. Nissan recording a 17. 6 decline although it was a 21 decline forecast. Automakers had to pay record incentives of more than 4000 a vehicle last quarter. The party is over for subaru, it seems. Its record 93 month sales growth streak has finally come to a halt. Hong kong is bracing for more unrest after some of the most violent protests since the demonstrations began in june. One person was hit by a live round as police fired six times. He remains in serious condition in the hospital. The unrest has battered the economy, with visits to china down 40 . Retail sales may have fallen 14 from the year ago, and Hotel Occupancy rates have plunged. Over macaugathering at the start of golden week. Gaming revenue touched the lowest in a year. Gross revenue was 2. 7 billion in september. Analysts were expecting business to strengthen in the second half, but the ongoing unrest in hong kong has hurt tourist traffic. 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. Im su keenan. This is bloomberg. Yvonne lets get back to our market story, asian stocks tracking losses in the u. S. After week manufacturing data fueled new concerns about global growth. It seems like the inventors estimate has shifted dramatically Investor Sentiment has shifted dramatically. What do you make of this data . Is it telling what the fed will do for the next couple . Couple months . The United States somehow seemed to be keeping out of the weakness we have seen in the rest of the world. It is no surprise global pmis are weak. The jp morgan global index has been declining for a long time, even though it recovered slightly in september. It is still below the breakeven line. To see the u. S. Included in that mess is a shock to people. They thought the u. S. Economy was Strong Enough to keep it out of the way. That will add pressure to the Federal Reserve. We are bound to see the rates market start pricing in more in the way of cuts, certainly into next year. We have a lot of fed speakers over the next couple weeks. We will get a mixed message. The fed is not united on looking for lower rates across the board, and yet they still did. They cut rates at the last meeting, even though they were divide. It will be up to Jerome Powell to get them on his side. If the markets keep pushing for more rate cuts at the end of the year, it is possible the fed will follow. The data is headed in that direction. The equity markets look pretty weak. The very poor finish on wall street yesterday that is spreading across asia. October last year was very poor for markets. There will be extreme pressure on the fed to raise rates again. Rishaad what happened yesterday . Crazy volatility. Have not seen Something Like that for ages. Mark the bank of japan is getting serious about steepening its yield curve. They have also announced a series of bond purchases for this month, which will benefit the short end of the curve, less so the long and of the curve. They will continue to buy bonds, but at a much slower rate. People took that message seriously. We had a week 10 year auction yesterday weak 10 year auction yesterday. The bond market came back because of the weak ism number, but the boj is pretty serious. Strong signal they will do more easing. They may lower the negative yield rate. That will have impact across the curve in japan, particularly at the long end. They want to see higher yields on the long end of the japanese curve. We will see more volatility in the japanese market. Yesterday we saw the german bund market had a wild day, which was triggered by japan. We could see volatility driven by japan. We have to keep our eye on what jgbs do for the next couple weeks. Yvonne you suggest more about whether we could see a repeat of december 2018, which is still pretty vivid in most investors minds. Could we see a rerun . When the u. S. Nges and china resume their talks next week. If there is a positive income, it will help, but right now the signals do not look good. Is talkinghe u. S. About restricting capital flows that kind of thing will not help the mood when the two sides get together. China is doing its part by trying to buy soybeans from america. Tooe maybe too may be small. A lot will come out in the meetings next week between the two sides. If we are back to the same addition where we were, that will be a negative signal, and we could easily spin into another poor october. Whether it is as bad as last year, we dont know, but there is a weak market in the cards. Ouraad mark cranfield, strategist in singapore. Lets get to our first guest. Fred, great to see you. The jgb market going absolutely mental. Why have the why do they have their knickers in such a twist . Things are bound to bounce around a little bit. Rishaad a little bit . Here is one of the interesting things. Global bond market volatility is actually up because volatility is drying up. Liquid italy liquidity drying up, more volatility. Rishaad monday, the terrible bond auction for the 10 year. Through that ripples tuesday and wednesday. The question is what policy will be Going Forward with ecb buying bonds. The Federal Reserve with an easing buy. We are seeing weaker japan data coming through. What is the boj going to do . Probably just suck up more liquidity. Yvonne they cant buy more bonds, it seems. Cutting their purchases they have been cutting their purchases. Do you think the conversation will change more toward etf purchases . Frederic the risk is markets will be disappointed, so you are better off doing nothing and say we can still do more. Theou expand etf purchases, market will say they are completely out of bullets. Rishaad out of ideas. Frederic yes, just running against the constraints. The next big thing is more corporation coordination between the government and centralbank side. That is essentially helicopter money by another name to extend that forex recently that more explicitly. Rishaad we have this hike surely governor kuroda says the government needs to do heavy lifting, raising this tax. You are going, we need fiscal support, we are not getting it. Frederic they are saying 83 of the incremental revenue raising with tax they will put back into the economy. Rishaad that leaves 17 that disappears. Frederic that is right. The thinking in japan right now im a they can probably ride ridethey can probably through this. There is a risk of recession. There is frontloading, then there is a payback. Given how the economy is skating just above zero growth rate, it doesnt take much to push you into two quarters of contraction. With the Global Environment being so challenging, pressure will be on more spending again before the year is out. Yvonne lets talk about the u. S. I asked him manufacturing data ism manufacturing data. It seems like there was a worry of a slowdown, but not any imminent recession risk. Does this change that narrative . There hasthe ism been a good recession for decades. Slipping is certainly a warning signal. Remember, the u. S. Pmi has perked up, so it is a bit of a divergence. Looking at the chinese pmis, they werent quite as bad as well. It is not as if the september data points to yvonne that is what someone say some would say. Frederic to be frontloaded, yes, but the chinese are finetuning. Domestic orders have picked up for china. That suggests domestic stimulus is gaining traction. Rishaad talking the u. S. , what about september data . We have payrolls friday. Frederic here, the risk is if we get a weaker print on job generation, that just confirms the ism data. For example, initial claims remain extremely low. The latest labor markets prince were prints were not that bad. That the u. S. Is at recessions door is a bit overblown. Payrolls, that really is the big one. Yvonne stay with us. More from hsbc cohead of asian economic research. Lets get to the latest when it comes to the hong kong situation. What is going on after an ugly day yesterday, one of the most violent clashes we have seen. We have Sophie Kamaruddin watching the developments in hong kong. What is the latest . Sophie daily life continues on the surface. Nearing a kong be Tipping Point after escalating violence after the holidays broadmoor violence to a city that already injured four months of unrest. More acts of defiance have been called for after an 18yearold demonstrator was shot by police. Authorities defending the action, but coming under criticism for that action. With hong kongs increasingly violent protest hitting tourism, retail sales continue to crash as well. We will have a look at a credit numbers. This is bloomberg. Yvonne lets look ahead to the rest of this week. Plenty of data, policy decisions to look ahead to. Trade data out of australia on thursday. Rbi data as well. Inflation numbers out of the philippines and the u. S. Jobs report on friday. Fred neumann is with us. We are looking at the data what is getting your attention, which data point . Frederic rbi. Despite the fed signaling it will go on hold, we had the rba cutting rates before the r. B. I. Cutting rates. We are still in the process where Asian Central banks are easing Monetary Policy. I think the ism data reinforces that impression of downward pressure still building, and we have to loosen Monetary Policy here from china to australia to indian. Yvonne is there a risk from divergent too divering too far from the fed . Is there a risk this could lead to more volatility . Frederic down the line, particularly if they cut too quickly. We could see fx volatility come back. For the time being, the market has taken the view that the fed has already cut rates, and that gives Asian Central banks more breathing space to cut rates further. If you look further out beyond in the fourth quarter, most Central Banks will likely go on hold. Looking at two or three months more of Central Bank Action in asia before they go on hold. Fiscal policy needs to drive the cycle. Yvonne it doesnt seem like the u. S. Is the central barometer when it comes to making these decisions. Is it more about china, or the fiscal side . Frederic it is china. It is all about china. You mentioned the trade war. We missed the big story in the room in the Global Economy, which is chinas growth is downshifting. Even if you had a minideal in the next few weeks, it would not dissolve all of the challenges we are currently seeing. As long as the chinese economy is shifting down to 5. 8 growth next year, that will be a headwind for europe and neighboring asian economies. These central bank will have to signal further easing. Rishaad how far is Dollar Strength down to these Interest Rate cuts by these em Central Banks . Frederic em Central Banks, but also japan and the eurozone. Those are really the two ones that matter for the Dollar Strength in general. It is against other g2 currencies. With the boj and ecb keeping rates negative and increasing easing potentially, that means the dollar still looks attractive on a relative basis. That gives the dollar some left, despite some lift, despite a deficit. The other Central Banks in the room are holding down their currencies. Yvonne is there anywhere in asia that worries you when it comes to the growth picture . Korea seems to be one bellwether where you see no let up when it comes to exports. What are you seeing in the region . Frederic it is a small, trade oriented economy. Taiwan, singapore these economies are highly dependent on global trade. They will continue to struggle. It is the larger economies where we could see some improvement. That includes china. Paradoxically, the u. S. China trade tensions are a bigger problem for the smaller traders than china itself, because china has more domestic market to balance off that weakness. Rishaad something positive to end on, very quickly. [indiscernible] you know, something we can look forward to. Frederic china is not going into hard landing. We still have positive growth next year. That will ultimately put a flu on the growth next season. You look at the latest pmi numbers on average, in china, they are up. Yvonne what do you expect on the policy front . Frederic they dont look like they will do a big bang, but more finetuning is in the pipeline. Rishaad fred, thank you. You can catch up with all of our interviews by going to tv o n the bloomberg terminal. You can also be part of the chat by sending is instant messages us instant messages during our programming. This is for bloomberg subscribers only. Tv. This is bloomberg. A Company Discloses more details of a pale scandal amid rising investor scrutiny and a government ordered investigation. The utility will identify 20 Company Officers who accepted gifts, including details about the goods they received. It is trying to contain damage from the revelation that conservatives took payments from a company that works on its nuclear point. Grade cut toorks triple see triple c, a reduction of two levels, saying it reflects weworks uncertain liquidity profile. Borrowers of this tier struggle to meet their obligations if Economic Conditions deteriorate. Yvonne airbnbs wall street gave you is earmarked for 2020 debut is earmarked for 2020. It has laid the ground for a direct listing. That lets firms lower the millions of dollars they typically pay to investment banks in underwriting fees, because they dont raise new capital. Rishaad we are headed toward the japanese lunch break. This is the position we are in. Nice profile. [laughter] rishaad the transport index, Auto Transport equipment index in japan really feeling it, driving the nikkei lower. These are due to horrible u. S. Auto sales, with doubledigit declines. Nissan actually beat we were looking for a 20 fall a 17 fall. We just talked about some of those carmakers which are driving the market lower. It is 10 29 a. M. In hong kong. In shanghai, 10 29 p. M. York, 10 29 p. M. The controversial fake news law has come into effect this by critics fearing that it will be used by the authorities to clamp on free speech. Ministers order a correction be carried out. Material considered against the Public Interest to be taken down. Singapore is one of many nations grappling with how to respond to propaganda. Information online. To north korea, the country may have fired a submarine based Ballistic Missile on wednesday morning according to a statement from the south korean president s office. The Defense Ministry in seoul a maximum altitude of 910 kilometers. Earlier, the u. S. And north korea agreed to revive stalled Nuclear Talks in the coming days, building on a big agreement by President Trump and kim jongun at the Demilitarized Zone back in june. President trump has resumed g theng the fed, bashin fed. He said it put u. S. Manufacturing at a disadvantage. Tom continued his campaign for lower Interest Rates, saying the governor and the fomc in his view are their worst enemies are he rounded off his tweet saying, they do not have a clue. Prophetic powell has yet to indicate whether he will cut rates again this year. China has given the upcoming trade talks a lift by agreeing to buy one million tons of u. S. Soybeans. This after beijing issued more waivers from import tariffs. We are told state owned and private companies are just about 15 cargoes. Mostly for shipment this year and the rest in january. The move may help a more conciliatory atmosphere between highlevel officials when they need next week in washington. 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. Hong kong is reeling after the most serious clashes since widespread unrest erupted. Sophie kamaruddin is in one of the districts affected by the protesters. Really holding over hong kong this morning. I am outside an interest symbolic of the willingness of protesters to go to violent means. Right police are using tear gas, water cannons, rubber bullets. Live rounds were fired. One ofearold hit by those rounds. The Police Commissioner has since defended it. Today, we learned the young man is in stable condition. This at the end of a day that saw more than 180 arrests and 30 people hospitalized. Shopping malls closed. Today, we are attempting to resume normal life on the surface at the very least. This condemnation on both sides. We saw a day of grief while Police Ministers are calling it the most violent for hong kong. We have International Voices also chiming in. The u. K. Foreign secretary calling the action of police disproportionate when it came to that shooting of that young man. U. S. Republican lawmakers criticizing china when it comes to defense in hong kong, saying it showcases the price to pay for 70 years of communist rule. Givee sophie, does this any reason now for beijing to crack down . With the escalating violence, we have yet to see a from china. There have been reports of a presencep of military from the mainland here in hong kong. Reports citing foreign diplomats. During the military. , xi jinping talking about the complete reunification of china bringing macau back into the fold but it is still unclear as to how much room carrie lam is being given by beijing to manage the situation and to seek a resolution. Lacko has yet to reconvene. We are counting down to the election due to take place on november 24, where more than 4 million registered voters will be able to express themselves at the ballot. Yvonne that would be the potential mac to. Sophie kamaruddin joining us outside in admiralty this morning. In hong kong, the august retail sales data in the city this afternoon. That is when they released it. It will show a deeper slide with arrivals from china tumbling 40 year on year in august. We had the one headline coming through when it comes to macau gaming revenue touching the lowest level we have seen in a year. Joining us now is the Credit Agricole p. M. Strategist em strategist. Is the next six to nine months just going to get worse . Basically, from what we see right now, it is difficult to see a nearterm resolution to this. Sales will continue to point lower. We are seeing the luxury segment getting hit quite a bit. The only part of retail sales which is good is supermarket sales. Rishaad staples. Everything else is declining. Yvonne when it comes to retail side, do you think the damage has already been done . Could this lead to a permanent contraction . Eddie it is still early days. We have been through the protests for about three months or so. The luxury segment tends to be more cyclical, so i said to at the same time, we are dealing with the u. S. China trade war, a slowdown in global growth. It tends to bounceback quite quickly. It is too early to say this is the end for hong kong. Rishaad this is secular. What is taking place. It is structural because it has been shifting for a while anyway and the economy itself, its focus has been changing. What does it evolve to . Ago, places were covered in luxury goods stores. People in Mainland China can buy them domestically or perhaps go somewhere else. Japan or elsewhere. Eddie hong kong has always positioned itself as a shopping paradise as well for a lot of chinese tourists. The wholesale retail sector. That has contributed 1. 2 of gdp growth on average over the past few years or so. Clearly, that has been a very, very important sector. As we see now, if retail sales dip, we expect that. The only parts where we can probably see growth will be a Financial Services sector. Financial Services Remain quite key. Hong kong remains the gateway for china. We do not really see that changing nearterm despite what is happening to hong kong at this point in time. Rishaad what is the readthrough for that retail into property . That is the big challenge, i suppose. Eddie i would see both of them as together. Up, iferty prices go peoples wealth goes out, they spend more on retail as well. I see that as the more important driver. We have seen Property Prices remain relatively resilient. We have not seen a big dip in Property Prices. There have been a few stories where there has been a 10 cut in Property Prices, but that is not what we are seeing across the industry as well, so in terms of the outlook for the property market, we are probably going to see a bit of a dip, but it will not be a dive. Homeowners remain quite cautious. They remain in a wait and see mode. People are really happy to sell at 10 lower in this market. Demand remains quite strong in hong kong as well and that should still keep the Property Price from dipping too much and that can support retail sales by a bit. More broadly, the key is u. S. China trade war, lower tourism numbers, lower luxury sales. Yvonne any impact . Eddie it remains very, very strong. In july, a lot of people were worried about outflows. In july, hong kong saw inflows so that pushes back against a lot of people worrying that hong kong is seeing a lot of outflows. Yvonne where were the inflows coming from . Eddie we are not sure. What we do see in terms of the numbers, it was not an outflow scenario. Yvonne you watch china, taiwan, and korea. Taiwan is looking more interesting these days. Is this because of the iphone cycle . Benefitse iphone cycle all across asia. It is a big tech boost. But we are seeing is taiwan and korea tend to have big Electronic Components and their exports so that ties in with global chip sales. What we have been seeing across the region is koreas exports continue to decline but taiwan exports have actually been rising and i think that is very interesting because that shows taiwan is gaining market share. Reasoncan probably see a for that, korea is getting impacted with its own regional trade wars with japan as well, so that shows that taiwan, even though it is externally exposed, is not necessarily a loser in what is happening in the Global Economy today. Rishaad the big bellwether is career, ultimately, isnt it . Eddie korea, that is shifting. In the trade numbers, it remains quite weak. Semiconductor exports were down 30 year on year. If we look at korea and singapore together, the export picture is quite weak. It shows the Global Electronics cycle has not really turned yet. Into taiwan, we can show even though it is not turning, even though the pie may not be growing, there is a potential winner here. Yvonne what is going to happen after the golden week holiday in china . We were just talking to hsbc. Look, the fallout from some of these smaller economies is going to be much greater than what we see in china. Do you agree to that view here, and where is your outlook for dollar china . Su if eddie if we are looking at dollar china, we are not really worried that china is going to see a landing. Our growth forecast is 6. 2 for this year, and basically, if china wants to double gdp growth, they only need about six 6. 1 . 6. 0 to for dollar china, i think it still depends. We have the potential upcoming talks on october 10 and october 11 appeared a lot will ride on that. October 11. A lot will ride on that. Our outlook is not great. We are still looking for a bit more upside. Is still a level that dollar china can reach. Rishaad good to have you on the program. Coming up, the International Energy agency saying it may revised down oil demand due to the weakening Global Economy. Yvonne we will hear from them next. This is bloomberg. G. Rishaad the iea, International Energy agency, may cut its forecast for oil demand, according to the executive director. It comes weeks after attack on saudi aramco facilities that raised new concerns about supply. Yvonne speaking exclusively to bloomberg, he says there are reasons why oil did not move too much after those attacks. There are a few reasons but two of them are important. The first one is i think the saudi authorities, very quickly, moved and reissued the markets. They have come back very quickly. Many other players such as the international agency, said please come down. With iaeaough stocks countries. If there is a need, we will be bringing those to the markets no problem. This is one reason. Second, the United States. U. S. Oil production is still growing very strongly. There is a lot of oil in the markets, and as a result of this, too, we did not see a major jump. They are more or less there. Exactly, and the saudis have been making remarkable progress on restoring production and exports. Do you know where they are right now in terms of production and exports . Whatwould like to refer to the authorities say. They are very close if not almost there in terms of production and exports. I have no reason to talk about their numbers. The ieae demand side, has expected growth to be about one Million Barrels a day this year and next. That still the case, is still your forecast given the slowing Global Economy . We expect, currently, growth about 1. 1 Million Barrels per day. It is much lower than the historical evidence. Also, looking at the Global Economic weakening, china. They are experiencing the lowest Economic Growth in 30 years. Economies are slowing down. There are members in the next days or months to come if the Global Economics continues to weaken. Yvonne that was the iea executive director speaking exclusively with matt miller. Rishaad thats have a clear to look at the latest business flash headlines. But Credit Suisse chief executive surviving a scandal. An internal memo seen by bloomberg for the shadowing of was deeply regrettable. Credit suisse directors exonerated him over the scandal, saying there is no evidence he knew about the plan. Yvonne for Payment Companies join facebook as founders of the are saidociation and to be having second thoughts be a they are increasingly undecided about signing the charter, worried about maintaining relationships with regulators. Facebook oversold the extent to which regulators were comfortable with the project. S flying drones. Given them permission to use drones at hospitals, universities, and corporate campuses. It is a major step forward to routine drone shipments to they promised to reduce carriers costs. It increases demand for certain deliveries. Facing Boris Johnson is a moment of truth for his Brexit Strategy as he prepares to offer what he calls his final deal to the european union. Bloomberg has learned that the e. U. May consider a time limit on the contentious backstop for the irish border. Rishaad Jodi Schneider is watching all of this. What is going on here, jodi . What is being offered to the e. U. Here, and what will he do if his deal is not accepted . This is it, isnt it . Is it a strawman critique . The way he proposes something unacceptable and then shrugs his shoulders and says, well, i tried . It is them who rejected me. Having a hard brexit, what is the deal . Jodi Boris Johnson does appear to be offering an ultimatum to the e. U. , saying take my deal, my final deal, although he has not offered a whole lot before this to be e. U. , and saying if you do not accept this, this is. We will walk on october 31. Ansays he will not ask for extension even though parliament has said you cannot leave on october 31 without a deal, so it seems to be he is daring the e. U. Either to accept it or to offer an extension that he will not ask for, so this is a game plan at this point. He is rejecting the irish the socalled irish backstop, which was the contentious part of the deal signed by his predecessor, theresa may, in the e. U. , in favor of his own plan. Yvonne this new proposed approach on the backstop, how is it going to work . Jodi is it workable and will the e. U. See it as workable . It will essentially place Northern Ireland in a temporary regime with a time limit, and it would require customs checks between Northern Ireland and the republic of ireland, which both ireland and the e. U. See as unworkable. He is saying this is a fair and reasonable compromise, that it would work his and some other hardline brexiteers have critiqued the criticism of the backstop. It has been that it would place it would require the u. K. To stay within e. U. Rules indefinitely, so that is what he is proposing right now, which would get around the backstop. That is another question, is whether parliament is going to go for that, even if the e. U. Was to agree to it. Whatad well, you know, are the folks of the European Commission going to make of all of this year . It is less than a month ago before halloween and that is when britain is due to leave the european union. Notedwe have reported, as , that theres discussions going on, obviously, in europe, and some countries are saying that perhaps, what they could allow is a time limit on the backstop with net criticism having been that it could go on forever. Thatwould only offer apparently if they thought Boris Johnsons plan was workable. This is something they could improve. Parliament, meanwhile, is sticking to its guns, saying they will not allow the e. U. To leave. They will not allow the u. K. To leave the e. U. On october 31 and if johnson does not get a deal and he seems to be not asking for an extension, he may well find himself in court with members of parliament and he may risk his own roster. Everyd watch this space day. Another twist, another term. Thank you very much indeed. Our is Jodi Schneider, Senior International editor. Coming up, that time of the morning. Yvonne all the charts, up next. This is bloomberg. Rishaad you are back with bloomberg markets. It is battle of the charts. Taking on china markets reporter right here in hong kong. Yvonne viewers, you can access the charts on the bloomberg at the bottom of your screen. Lets kick things off with carl. Good morning. This chart shows that em stocks are at the Biggest Discount since november. Using the msci indices. What is interesting, if you look more closely at the data, i wanted to keep the chart simple. It is not that people are not pessimistic. Actually, both appear ratio for ratioseer the peer ratios have risen this year. Hire growth in developed economies rather than emerging markets. Thank you. Rishaad ok. Karl, very interesting. Yvonne very polite. Rishaad rather. [laughter] rishaad lets get to another polite person. She is here with her offering. My chart reflects the depreciation pressures in the offshore yuan. The panel of my chart shows the pboc specifically and the shery ahn. You can see the gap has been on the rise recently. This trend may continue in the coming few days because the central bank will not be able to guide market intimate with its stable fixings because the offshore market will be closed for national holidays. So that means that if the trade war between china and the u. S. Escalates, and those coming few days, there is a chance that the sharply and that may drive the offshore rates much weaker when china is back from holidays next week. Analysts do expect that you want to weaken further in the near yuan to weaken further in the near term due to the wide difference between china and the u. S. Yvonne thank you. [laughter] rishaad i thought both of them were excellent. Very different charts. Karl, im afraid that honestly, it is a draw, but i think i better leading towards lea towardsn tia you are chargingn. Lean towards tian. Yvonne you can catch up on the key analyses. There are returns for your future reference. Be sure to check it out. Rishaad take a look at the movers to see what is going on with this market in hong kong. Costco, for one thing. Escape we are watching innovation these are the oil refiners that have been hit by sanctions on chinese tanker companies. They could face more than 5 million in extra charges here. They plan to ship 2 Million Barrels of oil from the u. S. To korea, so that it there are a lot of issues. Rishaad there is a huge presence on the mainland as well. Yvonne are they able to kind of offset it . The situation when it comes to the streets in hong kong, forcing a lot of these shops to close. Not looking good ahead of that data later on today. Er on today. I am taylor riggs in san francisco. This is bloomberg technology. Mark zuckerbergs meeting with facebook employees gets leaked. Why the social network ceo is ready to go to the mat against the u. S. Government. Plus, back in brazil, uber is reentering brazils slums