Indonesia rattles the nickel market. We will bring you Investor Insights from the top analyst in sydney. Markets gaining ground for the past six sessions. Lets turn to sophie. Green shoots for aussie shares after the best winning streak since may. This after Growth Stocks led gains on monday. We are seeing the backup and aussie yields, with the rise across the curve. The rba governor will give a speech today ahead of the policy decision. Ahead of fed and boj decisions,. He yen on the back foot flat, seeing futures waiting for signals from governor kuroda. A sense of overheating for japanese stocks, earnings making that trickier. We just got word on earnings, from thoseumbers reporting. , a fifth of firms will deliver the report cards ahead of the deadline by the end of the month. Lets head to new york for first word news. Thanks. Boris johnson will try tuesday to give parliament to allow an early election, after failing on monday to get the majority needed to push it through. He says he will submit a simpler version of the legislation, only proposing a date for the election and will need a simple majority to be approved. Accepted theu e new brexit extension. Nullifyimed to republicans main complaint that the impeachment inquiry process is illegitimate and, it will be the first chance to be on record after supporting or rejecting the impeachment process. The boeing ceo is set to admit the plane made major design mistakes in the 737 max in front of a committee on tuesday. He insists the Lessons Learned will contribute to safer aircraft in the future. His testimony coincides with the oneyear anniversary of the lion air crash. Curbs on hiring chinese talent are hurting companies, according to a former google ceo. Eric schmidt argues restrictions on recruitment and information sharing with the country are counterproductive. He called for access to chinas top scientists. Is Trump Administration considering more export bans on top technology. 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. Action, the the , helping therun s p 500 taking out the record. It has been a busy, heavy earnings week, one hundred 60 companies reporting. What caught your eye today . Robust or positive earnings seem to be continuing, the market hitting an alltime high, optimism across the board, one strategist said. For 14. 5 on an offer billion. Microsoft soaring after winning a pentagon contract, at t moving higher on a board reshuffling, e in the lower as pg lower. Chicken producers up as china lifts its ban on poultry since 2015. Gains due to optimism on the u. S. China deal. Downarquee names, alphabet on we could then expected profit mat with better meat, better than expected numbers. The spending on the cloud denting the profit, and there is concern about blowback on the thetrust front putting stock in the negative. Haidi the boeing ceo prepared to tell the senate his company made mistakes. How is that impacting the stock. We have the release of his testimony. The issue has weighed on the stock. Thee are some who think senate will not receive him well. We know the ceo is likely to say to the senate and the released remarks that we made mistakes, got some things wrong, own that, and we are fixing them. The questions would be what did they know, when did they know it, and the answers could affect the stock. Oil and gold lower. We thought we would see oil move higher, but there is concern that Inventory Data will be bearish. Fact therething, the is possible revolution took out move,putting in a lower now that there is less uncertainty on the trade front. Back to you. Wrapup of an optimistic againstovernight, that the prevailing risks in the market. Our next guest joins us in studio. Great to see you. Optimism fresh wave of. What happens from here . The fed moves this week. The second phase of the trade deal less certain. Brexit still a mess. Have we peaked . I guess the fundamentals warrant record highs in the u. S. . News, soe some good you so you saw equities rally. My view is that it is temporary. Global growth is still slow at the moment. While the u. S. Domestic growth story is not too bad, there is some manufacturing slowdown. It means Central Banks will remain dovish in the short to mediumterm, and i think over ae longerterm, you will see catalyst for the trend to continue upwards. We saw a renewal when it comes to the global bond market, particularly asia, negative debt , falling 4 trillion to below 13 trillion. We are seeing a lot of that play out in asia. Do you expect to see a return. If you look at global rates haswhere it has gone, there been a rally of 100 basis points , so you will see consolidation along the way. Get some volatility along the way, but if you look through it longerterm, fundamental growth is still is below and inflation what the Central Banks wanted to be. Rates backupot see materially for a while and mike personal view. In my personal view. Shows how pork prices have pushed up the inflation numbers, headline cpi cpind 3 , but pork continuing to search. Wen you have this dynamic, say china has the tools from a but when you have inflation that is high, can you use it . Chinas inflation situation is different in terms of other developed markets around the world. It spikes up up once in a while. I think it its not as much inflation, but more about gdp growth. So theybeen slowing, need to manage that slow down so there is not a sharp decline in growth. They are happy for growth to decline gradually. There are tools that can help them do that so they dont affect their own domestic Global Growth it is to adverse for markets. We have the Party Conference this week. Do we expect policies or significant changes held that it . Changes out that it . We have seen the chinese use fiscal levers to managed the slowdown. It has been targeted. It is targeted at specific industries. If they can announce more initiatives, whether infrastructure spend, or dealing with the property market, that might be positive for markets. With the shortterm resolution of the trade war eminent, are you still on u. S. Dollar . We like u. S. Dollar at the moment. If that tension remains in the background, it will be supportive for that currency. I think the structural issues will remain a factor. The changes mean corporations can bring about 1 trillion of overseas cash into the u. S. With the recent selloff, its probably not a bad way to be positions along. That would mean more pressure for the aussie dollar, so how supportive will that be for the aussie economy . We are slightly bearish on the aussie dollar. Fundamentals in australia are slightly week compared to last year. Gdp is 1. 5 lower than 12 months ago. Unemployment is still high at weakero fundamentals are and they will have to cut a couple of more times, so that will be negative for the aussie dollar. Always great talking to you. Thank you. Still ahead. Nickel trading after indonesia suspended exports ahead of plans to become more than supplier of its mineral resources. Coming up next, President Trump says the administration is ahead of schedule on a trade deal with china. Does this signal progress in the ongoing trade war . This is bloomberg. This is daybreak asia. China said parts of the text for the deal have been basically completed. Tom mackenzie joins us from beijing for more on this. We are seeing momentum ahead of the apec meeting. They are looking at november d november 17 at that summit. They have dovetailed their messaging, but this phase one heard hime deal, we speaking effusively about the progress, saying they are ahead of schedule. This follows comments from china on saturday, saying the text of the part one of this deal was arounde, particularly regulatory standards like agriculture, and that signal followed a phone call between the u. S. Side and the chinese side on friday as well. So there seems to be momentum. U. S. One of the deal, the is saying china buying and committing to buy Agricultural Products to level, at levels before the trade war kicked off, as well as commitments from the chinese on intellectual property , and also the currency, in exchange for a pause on the tariffs on the u. S. Side. China is also pushing for removal of tariffs. That is still unresolved. Thether respects, it seems two sides are aligned. It remains to be seen whether phase two comes to bear. The questions over how much progress can be made after this initial phase one deal is signed at the november summit. See this, exposure continues. What do we know at this point . Across the board, a bipartisan push in the u. S. , particularly from lawmakers in washington continues on National Security or human rights fronts. This is the news that marco rubio, the florida senator is suggesting he will push for the bill to restrict the access of u. S. Pensions to chinese equities, because you have one billion, thet 50 chair and board of that fund is considering allowing that cision pot to reflect the ms index, which includes china. They say that is about diversifying the portfolio and reducing risks. Marco rubio says you are allowing for u. S. Officials and their pensions to fund the communist party of china. He would have to find coast signatories for the big, but it is a reminder the push to reduce investment in chinese equities is still in focus. The white house and Trump Administration are discussing these issues, this after sanctioning that eight companies over human rights abuses. In focusstill firmly for lawmakers in washington. How much are these issues in focus when it comes to the communist party plenum this week . Of thegathering of 200 most powerful communist Party Officials in beijing runs from the beginning of this week through thursday. We believe the emphasis will be on politics, rather than the trade war and economics, but those issues will come up inevitably because they are linked. We hear that president xi jinping will be pushing for greater control of the communist party in all aspects of society, ensuring the comments party is strengthened and rejuvenated. Jinping willent xi be the focus, the politics and role of the Commons Party and strengthening the role of the communist party, but economics and trade will be discussed. We will get details on the back of that meeting on thursday when the state media gives its first report on what has been discussed in beijing. Thank you so much. Spending, alphabet soaring in the Third Quarter as the tech giant attempts to catch up with amazon and microsoft in the Cloud Business. Forill go to San Francisco a full earnings wrapped next. This is bloomberg. This is daybreak asia. Lets get you a check of the business flash headlines. Louis vuitton has held talks with tiffany about a 14. 5 billion takeover. Tiffany shows 30 higher on monday, the biggest single day the ever, as analysts said jeweler may attract rival bids. Tiffany is saying the board is reviewing the offer. Jumped the most since his first trading day after adding more subscribers than expected. Payingd 5 million subscribers in the quarter, lifting its base to 113 million. It has been spending heavily to maintain its lead over apple and amazon and claims to be growing more quickly than both of them. The u. S. Federal Communications Commission is planning on a vote on whether to bar huawei from a subsidy program. It restricted the purchase of huawei equipment and the removal of any huawei gear currently installed. Will vote on november 19. Settling downares 2 in late trading after thirdquarter results. Heavy investment in the Cloud Computing business trying to catch up with amazon and microsoft weighed on earnings, down 1. 6 after hours. Great to have you with us. We have seen this chart on the bloomberg showing how revenue has in on a downtrend when it comes to the past few years. What was the problem . Investment in the Cloud Business, but other businesses as well, such as the hardware business. Google launched a new pixel smartphone, and it will have to spend heavily to promote it. The main story with the Cloud Business is they still lag amazon and microsoft in that market. They are doubling down on the people they are hiring for that business in the amount of products they are investing in so they can compete. They also talked about privacy. We have seen more tech giants under the spotlight. What have we learned . The advertising business that relatively well. Advertising was up 17 yearoveryear, better than the earlier quarters this year, so that business, mainly search, but also youtube, that is still firing on all cylinders. Sounds likeusiness it does gather a lot of data, but it is a relatively simple business compared to a facebook ad. Search query in google gets ads relevant to that. Google is a little protected there, but overall, the Revenue Growth is still strong, but not as it was in recent years, so that puts the onus on new businesses, like the cloud area. Did he address the antitrust woes . He did. He doesnt make pointed comments wasn, but this time he basically saying that as google expands into new areas, incumbent companies are complaining. He did not name any names, but cloud, think of it as in really google, google is coming in and taking some business away that serve companies the companies. Thank you so much for joining us. Next, japan and the latest reading of tokyo cpi. This is bloomberg. This is daybreak asia. We are getting the latest inflation reading for tokyo, cpi year on year, the headline 0. 7 . , again that ,t is lower than expected excluding fresh food year on year, 0. 5 . We were expecting 0. 7 . Tokyo cpi excluding fresh food , and the line7 with expectations. Of ane expecting more Inflation Impact when it came to the sales tax. That has not percolated through. Pointing out a change in childcare education policies which would have the flattening impact on core inflation, but we are not saying much of the effect of the sales tax. Headline number, zero point 4 , excluding fresh food, 0. 5 when it comes to the tokyo cpi numbers. We get that boj decision this week as well. Lets get first word news. European Central Bank President mario draghi has handed over the baton to Christine Lagarde in the form of this cold and bell. It is used to call policymakers to order. Speaking at the handover, mario draghi signed off with a call for more fiscal action to stabilize the regions economy. Today, lower Interest Rates are not delivering the same stimulus as in the past, because the rate of return on investment in the economy has fallen. Monetary policy can still achieve its objective, but it can do so faster and with fewer side effects, negative side effects from if fiscal policies are aligned with it. The israeli Prime MinisterBenjamin Netanyahu says his country is being targeted by a ran withthat i hitiles in yemen that can israel. Speaking before a meeting with Steven Mnuchin in jerusalem, an wants tolaimed ir set up our missile operations. Premise to her has fired eight members of his cabinet. The interior, finance, and economy ministers were all dismissed. He said his government has heard a loud and clear message that protesters want a more fair and more inclusive society. Taiwan ban on travel to could see the number of visitors fall for the First Time Since 2003. The number of mainland chinese traveling to the island plunged 46 , according to data from the tourism beaut bureau. Tourists are still allowed to visit into her groups. Global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. Thank you. Its turned to sophie for australian markets. 0. 2 , bondsding falling four 25 basis points. To aussie dollar holding on the game. Lets check stocks in focus. I look at eight look at nickel players gaining after an agreement to stop illegal exports. Moving that deadline forward. Nickel searching after indonesia imposed an export ban two months earlier than expected. David, great to have you. We knew it was happening. Just didnt know it would be accelerated. We did see that price action give back overnight. No doubt. Probably august of this year, that is when we saw the big move in nickel. We were still eight months away from the expected deadline for the export ban was due to occur, so we saw the markets rallied the price in, then Nothing Happened until we had this announcement over the last couple of days, indonesia has gone to the producers inside indonesia and said were putting that in the price. We saw that the total jump, but guess what, indonesia was extorting more nickel ahead of that ban, putting pressure on that price, but indonesia produces about 25 of the worlds nickel ore. Thoseke that away, refineries are going to have to look elsewhere, and that is why we are seeing that lift in price off the basis where it was. The chinese will have to look elsewhere. How quickly will it take for price to regulate in some of the shortfall to be made up . With 25 of the potential market offline, it will take a while for the markets to adjust. That nickel will have to be found by consumers who buy indonesia nickel ore, but you have to remember, they have had from august to sit down and work through their logistics chain, and they would have been doing that. If you are in nickel producer, guess what, those customers will be looking for nickel elsewhere, so question areas and austria and independents will be doing well for the next five or six months as we see that nickel price adjust. What does it mean for the broader Minerals Market . Indonesia is expected to broaden the ban to copper concentrates and other minerals. Cut such a bigt impact in terms of copper, but nickel, yes, 25 of the export market is a big impact. It will be like all commodities where we see a particular commodity hosted within one particular country or group of countries, then it does create that Geopolitical Uncertainty around what happens if, and we have seen that with indonesia they always, have to take it into account when you look at the supply chains, what geopolitical events could occur that have you looking elsewhere for supplies from someone else. That is what is happening now. We think markets will be looking over their shoulder at rare oil, so therea, are markets of concentration of supply. We have seen copper prices rise on the unrest and chile, but those charts on the. Loomberg showing that copper being so vulnerable to the manufacturing picture, what is the outlook for it . That is why we have seen copper lamenting somewhat in price. It doesnt seem to want to go beyond three dollars a pound, hovering around that level. Glamorousone of these types going into batteries, it is just plain, old copper. It is governed by the industrial sector. We have seen those industrial lamenting in recent reads, keeping the price lower. Were not expecting copper to too much the next year. It certainly welcome into deficits applied this year. Be left inpper might the backwater. Four how much phase does a phase one or two trade deal between china and the u. S. Meaningfully have an impact on commodities . I want to show you this chart, which has surprised me. Thecan see in the blue, index, so equities have been going gangbusters on any optimism. Does that mean even if we get a resolution that it will not govern the direction of commodities . It will bring in some certainty where Global Growth mako next year, giving the opportunity for Commodity Prices to form a base. The real drive up in prices has been the u. S. Dollar, and one would have to suggest that the u. S. Dollar has basically risen, giving a strong headwind against any rally across the commodity space in terms of seeing stronger prices. When we have seen individual wets such as nickel, have seen those Commodity Prices rally, but has kept a limit on then. Your insightsor today. If you are away from a screen, you can find indepth analysis on Bloomberg Radio, broadcasting live from our studio in hong kong. You can listen via the bloomberg app. This is bloomberg. This is daybreak asia. The earnings continue in north asia. Lets get to hong kong. What are you watching . The we are near the end of the chinese profit season. Decline standsit above 50 . The telco sector continues to be battered by falling earnings. Financials have registered improving profit growth, though the outlook remains challenging. Thank you for that. Chinese airlines reporting this week, expectations there may be some disappointment. And southern come on wednesday. Joining us now is our analyst. Thank you for joining us. This is also the quarter where we have the yuan breakthrough that seven level in august, so how will the chinese yuan effect of these companies . Headwind. Been a major we do expect a significant in the second half as in the first half. We expect fairly stable earnings for the Third Quarter. The airlines still have headwinds such as rising fuel prices, renminbi depreciation, etc. So where are we seeing the bright spots in the industry . Uppassenger demand has held relatively strong compared to other markets overseas. The domestic market is still so wide, so the growth is relatively stable. Outboundof international demand, there are weaknesses. Is the Chinese Airlines, it a mixed bag in terms of overall performance. What are the airlines doing to tackle the supply side of things, particularly the supply crunch with aircraft, the boeing debacle . Has beenear interesting because it is one of the years where airlines have started to cut capacity overall in terms of the home market, Chinese Airlines as well. They are starting to be more strategic with where they launch and new routes, so this is something that has come about because the market as a whole has been weaker than before. This is something the airlines have to be more clever about in terms of increasing capacity. Is there one carrier out of moreot that you look upon favorably at the moment . Right now we tend to favor China Eastern Airlines because they had the most comprehensive Domestic Network throughout china. Chinas domestic market still has a lot of growth potential. Capturing a lot of this domestic demand, which is insulated from overall Global Impact such as the u. S. China trade war, so that is something we prefer. One of the measures proposed by hong kong has been a 15 airfare subsidy. Ll this help Cathay Pacific . In terms of income, not as much. It would beine, minor, if anything, so this is something that could help the overall demand, but unfortunately they are still stuck in this area of low airfares and relatively low demand. A look at chinese and hong kong airlines. Ising up, the boeing ceo about to land in the hot seat, admitting the company has made mistakes. This is bloomberg. This is daybreak asia. Admits theeo playmaker made design mistakes ahead of two accidents. Our Asia Business reporter joins us now. Looking through the advance copy of his testimony, does it strike the right town . This is exactly a year after ,he first crash off indonesia and he is certainly taking a contrite town. Hes going to say he knows they made mistakes, on that, and are fixing them. The town shows he is taking an approach to take some pressure off of boeing. He is the First Executive to appear before lawmakers and faces two critical days of grilling on tuesday and wednesday, two separate committees. Even as he makes this disclosure in testimony, there are fresh allegations boeing withheld information from the faa about the performance of this Flight Control system at the center of these two crashes. Will this testimony have any bearing on when they can be cleared to fly . Boeing was optimistic in there Earnings Call that it would returned by the end of the year. That is a good christian. I think everything is up in the air. That is a good question. I think everything is up in the air. The questions he will face could certainly delay the return and show any culpability, if there is any, in boeings hands. What waswants to know wrong in the regulatory process, and we have other questions about the degree to which information was withheld from the faa, a fresh allegation knew that heeing could have catastrophic consequences for a plane and fight. That are more questions have to be answered, and who knows when this plane will be back in service. Inhas not been face back before january, february, so it is up in the air. Could we come out of this with more oversight from the faa because of this perception that the selfregulation did not work out well . That will be on the table as well. Of the the report indonesian investigation a few days ago, highlighting what was delegated to boeing. That they is clear were asked was boeing too much max, didl of the 737 they delegate too much . Those have ramifications for the process in the future and it could be more lengthy and bureaucratic. Thank you. Our asian Business Reporter with the latest on boeing. Richard bransons version virginc holdings Galactic Holdings was listed. It never achieved the commercial launch after running for 15 years. We spoke with them over the new debut. We have been flight testing these vehicles for 10 years and believe we have an architecture that is extremely reliable and has aspects suited to the customer experience. For example, taking off from a runway in a runway at landing. Our rocket motor is the simplest and safest rocket motor for us. So for all these reasons we feel really good about the system. At aey can be shut off seconds notice, which is key. I understand why celeste real uble gets all the buzz ial travel gets all the buzz, but what about the commercial space . Is 375ommercial space billion annually, growing to 1. 5 trillion. This is the first time people can invest in a pure play commercial spaceflight company. Outill focus on building this terrific, highmargin , operating from spaceport america, new mexico. Towards hypersonic pointtopoint travel, which is very exciting. We have an exciting near term and far term future here. Donningrd branson there the company system, alongside the ceo. To what toto sophie watch and markets. Nikkei futures higher, waiting for clues from the boj. Decision, cpi and tokyo has failed to pick up after the sales tax hike. The yen holding near a three month low. Futures nudging lower with a two year option that may see strong foreign appetite. We do have a heavy lineup from japan. Nomura to report later today. We will see profit steady for the lender. Will see a 20 drop in yearly income. Looking tssor the first time in three years, but there are signs of overheating. Haidi Sophie Kamaruddin there. , shane oliver joins us, weighing in on the recent market optimism entree talks. Earnings season rolls on. Discusst joins us to the strength and hurdles to the beverage market. The market open in seoul, korea and tokyo is almost upon us. This is bloomberg. Markets easure major markets have just opened for trade. Welcome to daybreak asia. Our top stories this morning, trigon tuesday for more stocks and as he fails to get parliament back for an early election. The house will vote thursday on whether to import support the impeachment inquiry against President Trump. Lets get straight to the market action. We have japan and south korea. Nneka 255seeing the andhe nikkei gaining ground valuations are proving as well asto some japan, south korea and singapore. Below 109. G steady prices just happened percent year on year, so a tax hike not doing much for inflation. The korean won extending at a july high at 2 10 of 1 . Sdi among those to report tuesday. Confidence confidence fell to two. Bonds are continuing to fall and yields continuing to rise. Lets get you the first word news. The house of representatives will take its first vote thursday on whether it supports the ongoing impeachment inquiry on President Trump. That it ismplaint is [indiscernible] it will require all House Oversight the in record on supporting or rejected the process. Has handed over the batons to Christine Lagarde. The bell is traditionally used to call the policymakers to order. Call forgned off for a more physical action. We are in a situation where low Interest Rates are not delivering the same degree as in past and because of the because the rate of return has fallen. And with so faster. Ewer side effects its fiscals policies are lined with it. Today, they have fired eight members of the cabinet following 10 days of riot protests. The economy ministers were all , saying protesters want a more exclusive society. Speaking before a meeting with u. S. Treasury secretary steve mnuchin, netanyahu claimed they wanted to set up more missile operations in iraq and syria. Global news 24 hours a day, powered by more than 2700 journalists and analysts and at tictoc on twitter, in more than 120 countries. Present from says the u. S. Is ahead of schedule on signing a famous trade deal with china, reiterating it may reach a deal in november. Bloombergs china correspondent joins us from beijing for more on the story. We keep hearing from both sides that there is still momentum for the trade talks. Do we know what could clinch this deal we have been expecting for quite some time . It sounds like there has been a lot of progress in terms of the framing of language and that was a bit of a sticking point. It sounds like the deputies have that language pen down. As you say, almost entirely complete, so does sound they have made a lot of progress in order to get this down the line. Again, both sides sinking to the same hymn sheet. Front saying trump saying there were ahead of schedule. The u. S. Holding back on additional tariffs. There may be some sticking points as we get closer to that deadline, but so far the two sides seem to be aligned on this. The big question after we get the deal signed off is what happens to phase two and phase three and there are major . s on whether they can make any progress. Phase one is really the easy stuff around intellectual property. Pointsre the sticking that have held up the talks for so long and that are so controversial. Even as we get optimism on chinesee talk, Companies Really amplified as well. As that fallen aside in discussions . Besides have been trying to keep these on separate tracks, but certainly it seems to overshadow the discussions to some extent. It is a reminder that whoever is in the oval office, the mood has changed to such a degree that the issues of National Security, human rights, all of these issues remain a priority and that republicans and the democrats, these are unlikely to go away even if you get a partial trade agreement. Rubio isaring is marco to banng legislation. Xposure to chinese embassies that has led the for senator to propose it. He said it is a Security Risk to see u. S. Government workers funding their pensions over china. Chair says this is about diversifying risk. Whittlesey we will see. Of course, weve had these additional sanctions from the u. S. In terms of these eight chinese companies. Of course, we had a speech mike pence targeting china over humans rights issues as well. All issues remain on the table even if there is progress on the trade front. Beijing. Ckenzie in our capital chief economist, he joins us. Great to see you. The school of thought, you see these record highs, the rallying something were phase two is out of the way. See the moreally difficult structures being addressed. That is exact precisely right. Once they space to guitar, that is about intellectual property, access to companies and china and so on. That will be a lot more difficult. I guess the background here is more important. Present from has become more beautiful. He cannot afford to let and obviously,se the [indiscernible] has contributed to this. The deescalation we have been seeing is the cause of the pleasure pressure around election coming up. The impeachment issue is probably adding to that pressure, so i expect that what happened is they announce phase it may talks that up and be doesnt happen until after the u. S. Election. Think heou cut it, i wants to the escalate the issue. You also have talks about extending the exclusion vote. Im wondering regardless of whether we get to phase one or phase two, if you get Central Banks continuing to do the stimulus and there was well, it is looking pretty optimistic. Optimistic too optimistic . I think earlier we are we were. Think we have to allow that something that changed. Torayed has continued escalate, but more importantly it has started to the escalate. The Central Banks were saying the next move is to tighten the and as we have covered this year, Central Banks have become a lot more friendly. There are some tentative signs that the indicators may be getting close to the bottom. We have seen bond yields failed loan new. New load. Of sure marcus, i can see it [indiscernible] all of these things are consistent with Central Banks starting to get traction and that is reason to be optimistic. , there is a lot of disproportion out there, so i suspect more upside. Market expectations are pricing in at cuts this week. This week, the charts showing you that and much lower on for lower one for december. What is that show Going Forward . I would say it ben chandler the u. S. Dollar has seen its peak. Straits anding the being somewhat more hawkish, but if we are getting into where it went more confidence, even if the fed doesnt, but that is because more optimism, that should take some of the pressure away from the u. S. Dollar and it should top out if it hasnt already. I think that would feed into that picture and various other indicators. From much of a risk coming brexit as we have now seen with a threemonth delay. What does this do to sentiment and the upcoming outlook . I look at brexit and i get a laugh out of it. It has been going for three years and looks like it will go into its fourth year. Make it still have a hard brexit because they cant agree on longterm relationship with the eu, so this looks like it is not going to go away. In the shortterm, it looks like we could if we get parliament approving a deal or after the election, i think theres a good chance they will come of that. Ill put it on the back burner i think you cant will have to potentially request another extension, so this is very complicated story, so at the end of the day, the risks are on the brexit side and that is handinhand with the risk around trade. Yes, the issue will come up next next six months and lisa get put on the back burner. Withlot of this has to do the massive amount of the markets. I wanted to take a look at the downward spiral. It has really accelerated. It is something we will see the government asked and quite clearly we are seeing pressure as a result. Changes that potentially if we get a deal for the u. S. . That could add to the pressure for the bond market. Werehappened, people shorttermntial resolution. We should not be in bonds, we should be somewhere else. I think at the moment it is manageable. Think they dont have inflation problem. Underlying,k at the if you look at the Core Measures , soistent, very low numbers that is just a fundamental reason. Pleasure. A lets take a look at what is moving the session. Checking in on some movers come provider al Services Planned multibillion dollar yen buyback. Switching now to check in on canon, the most since july 18 after missing thirdquarter estimates. The company cut its profit this is the0 , so third downgrade from tenant in 2019 and downgrade from tenant in 2019. 2019. M canaan in on [no audio]ter thank you for that. Ll ahead, horse Johnson Boris johnson planning to try again on tuesday after parliament once again rejected his bid for a snap election. Major break earnings in asia. What to Bank Earnings in asia. What to expect. This is bloomberg. Breaking news on pgd. We are hearing they will cut power to 605,000 customers in a mass blackout on tuesday. Of course, this is the california utility in order to reduce the chance of their powersnt igniting while while fires. The ceo earlier said it could face 10 years of rolling blackouts. Pg e cutting power to over 600,000 customers. Editor joins us as we look ahead at the results from japans biggest brokerage. What we looking out for today . Top the stock has been theytear since june when were really positive results and we are expecting to see recovery the same with wholesale operation troubled for many rs and an investment making business for the ceo cut costs. Bloomberg intelligence analysts are expecting more prevent in that area, particularly fixed income trading or they are expected to join rivals or a very positive for a very positive quarter. Side andhe wholesale on the retail side, that business is still in a little be of a slump, so we will looking for some signs of recovery, but might be cast to and it is really a case of whether they can sustain the recovery. You measure the cost cutting measures. What else can we expect on that right that front . Update atct to get an three months ago he said half of. He cuts have been achieved we are also expecting him to andte on the retail side cutting branches and also trying to focus on more facetoface engagement with those customers and try to get more Online Engagement with the massmarket, so we will have to see if we get an update on that one. Thank you so much, joining us from tokyo and you can also turn to your bloomberg for more more results. This is bloomberg. This is daybreak asia. Check on the latest business flash headlines. The u. S. To medications commission is planning to vote on whether to ban huawei. It also requires the telecom bands that they have already installed. The sec is sent to vote on november 19. Fcc is set to vote on november 19. [no audio] crushed into batch of oil and exported to china. China was the top importer [no audio] to make single day more global, allimportant, more 500 Million People are sent to participate. Coming up next, why democrats are planning the first floor vote on the trump impeachment inquiry. All the details ahead, plus the implications. This is bloomberg. This is a break asia. Dennis muilenburg is set to admit that the claim the plane maker may design mistakes and will testify on the u. S. Commerce committee on tuesday. He insists that the Lessons Learned. It coincides with the oneyear anniversary of the line aircraft over 100 people. Eric schmidt, now in top pentagon advisor on recruitment and information sharing. It focuses on a Stanford University event. The Trump Administration is weighing more on Critical Technology deals. Bands ban on individual could see the number of sincedual visitors fall 2003. The number plunged 46 in september according to taiwans tourism bureau. Tourists are still allowed to visit. More johnson will try again on tuesday for stocks and will saysgain Boris Johnson he will cement a simpler version and will need only a simpler majority to be approved. We will have more ahead as managements do trend. New trend. Global news 24 hours a day, powered by more than 2700 journalists and analysts and at tictoc on twitter, in more than 120 countries. The house of representatives will take a vote wednesday on whether to support the ongoing impeachment inquiry of President Trump. It is a process and this could House Democrats on whether they support or object the impeachment process. How are we expecting this impeachment process to play out. The way that they are describing this, this is just a. Ay to set the ground rules she said in a letter this was not really a necessary vote, yet she said to make it more wants thisshe just to go ahead and hold this boat. It seems that most democrats are going to be on board and there is some risk, but for the most part, this is a way to just set of theund rules impeachment inquiry. What has the white house said so far . The white house has come out and blasted this. Stephanie grisham has said even with this vote, it does not make it a legitimate process. The white house has really tried to paint this as a closeddoor process. To againosi is trying blunt that criticism, so even as they going have this boat, the white house has blasted the said this is and just a democratic which honk which on witchhunt. [no audio] that has come up in the past day or so as a sideline to all this. Has come out and warned and said if they fail to supply comply with subpoenas, they could be witnessing obstruction of Justice Charges and there might be an article impeachment of their own. The white house has told comply, saying they are illegitimate. Time, adam schiff saying they need to comply with the subpoenas and they risk a citation. Witness whoave one was a former aide to National Security advisor john bolton not show up. He was supposed to show up on monday. Adam schiff said he hopes that he will show up and he also did that warning, saying others in the Administration Needs to comply with a legitimate congressional subpoena. We will see what happens and whether other aides have been given. Look for testimony and look for documents. Thank you for that update. Lets get a market check with sophie. Higher withrginally for akkei 225 five headed fresh 2019 high at 23,000 points with almost all groups earning the asx 200ave within one or points 100 points of a fresh high. Checking on bonds, they remain under pressure, trading at about eight basis points. Check out chinese benchmark bonds. They will jumped the most in six months and earlier, moved from the chinese bond market not ,ooking to collaborative to him but this week, the question that china will have the sudden downturn that we often see. It to no secret that chinas economy has been slowing and somehow we are seeing corporate seeing fewer corporate defaults that should be a concern for investors. She joins us now from seoul. What does this tell us about chinas Credit Profile and the markets opening up and transparency making the market more oriented that we have been talking about . Think thatrious to the defaults are actually smaller even though profit had actually slumped to 2015, so what happens is more more dopanies are starting to where their investors tell them avoid redeem, so they can official default. For instance, we are seeing quite a few cases in which payments are saying we donthe grid, so know what kind of additional assets there are and in the past , the clearinghouse was sent out notices saying this company is pushing a notice of a default and we dont actually see the alert. The official number looks pretty good. Like oldunds of it china playbook all over again. Should investors be worried . So. Absolutely think to chinas credit, it has been asking companies as much information as possible, but if ,ou have macro dealings basically you are moving a public listing into the private market and i think china is talking about opening a Financial Market space and taking one step forward and two steps back. We are seeing the chinese economy slowdown. Isi think part of the reason crossre worried about guarantees, especially for a company to get that, they will have neighboring companies and guarantee, soelp if one company goes into default, the other company says i have to pay back, so i think they are quite worried by that. Thank you very much. A very interesting story and coming up next, is chinas slowdown causing the drinkers to drink less . E will add up the numbers this is bloomberg. This is daybreak asia. We return the two top movers in the u. S. Beyond me one of the years most successful, but our commercial. Google,art off with weaker than expected, all about the cloud. They are spending a lot on the cloud, but it definitely dented the bottom line. If you look at the big picture for alphabet, it has been a challenging year for a number of reasons, but lets talk about it coming in at 9. 18 billion. Almost 3 below estimates. Google Advertising Sales decline to youtube ceo did not want look at fitbit shares that surged 30 on rumors that google might be interested in a potential buyout. Some analysts say it would have given google a shot in the arm. Lets turn to be on the. They boosted the sales forecast. Why did the stock fall . Lockl about the expiration up which means and a lot of the supporters can sell it as early as tuesday. Check out the after hours, a big drop up several hundred percent if you look at the big picture. There have been a lot of questions and it is the second time that we are seeing the stock fall. Wasmost recent event announcing they were going to. Ncrease shares again, concerns that you could see a big selloff as initial backers tried try to turn investment into profit. Up, they say the profit is up, but the brewer could face weaker returns. Joining us now for asiapacific beverages, great to have you with us. What do we see in terms of sales volume . We have seen quite a week volume performance across the sector. And that isown 6 quite a change of pace. The first half of the year is characterized by growth and there has been a turnaround the summer and many have explained function of a nightlife outlook closure which i think has impacted the premium is quitend we think it a bit more broadbased. It looks like it is across the board going into the lower segments, so it is it cause for concern. , they werends banking on that strategy, so what does this mean Going Forward . I think in the premium outlook expecting the that have been closed over the last month or so, that is probably going to be relatively short. The brewers have been talking weakness andased we are seeing get across bugs portfolio. Beers declined about 8 , so i think the story will continue turning on turning real robustness in it is in the mid and low end we thinkt second the poor prices are putting pressure on the restaurant channel and that is driving a reduction in that is where a lot of the mid and low and theres are consumed. A pretty interesting picture. If you are not buying your dumplings right. Can you assign a broader with animalinishing spirits to what we are seeing because elsewhere, we are seeing the Chinese Consumer domestic demand hold up pretty well. That is correct. I think it is going to little farther at this stage. Seeing aow, we are real premium and above for consumers. We are seeing the companies andrting very strong growth i think at this stage, we are not too worried about the longterm. Moreink it does get idiosyncratic. I love that correlation, stocks going in that direction. Obviously considered a luxury name in china. What about inside china. Year, youpoke to last cannot slow down on their earnings . Korea has had a tough quarter. We have been noticing the headwinds the past couple of years and sought on imports into korea which is a stark counterpoint. We have been seeing quite an impact from increased competition as well. I think the third one is about the most concerning, but increasing prices about 5. 5 . What we have seen is there have been a major effect with a lot of consumers trading out to take advantage of that lower pricing and that has been a bit of a surprise for us. We have seen but announced they have cut their pricing right to invest a lot more in selling and marketing. Ofis concerning, the nature competition really intensifying in korea. We think height is ruling trying and we up the breweries are concerned they are going to really intensifying and cap up the pressure in terms of the pressing. Other asian any markets that could be the next china south korea and south korea really make up profit. He bud index it is hard to see china or india or vietnam becoming major profit drivers. I think what we keep our eyes is san miguelere in the philippines, which are two of the most attractive in the world. If these were to come to market , it wouldquired really changed the growth dynamics, so really looking out thinkat change do you consolidation broadly is something to look ahead to . It has been consolidating for the last 2225 years. Mentioned, only to scale as a mentioned, only to scale assets. There are a couple of small regional assets. Were not expecting a major driver for any forward. Thank you for joining us. Dont forget, if you are away from a screen in the days big news, we are now broadcasting live from our brandnew studio in hong kong, Bloomberg Radio plus or bloombergradio. Com. Asia. S is daybreak i am haidi from sydney. Lets get a quick check of the latest is a splash headline, aftery jumping the most adding more subscribers than expected. They added 5 million paying subscribers, listing his overall its 113 million overall base to 113 million. The french honor owner of Louis Vuitton expecting a 5 billion takeover. Shares closed more than [no audio] rivalweler may attract bidders. A billionaire is setting up a 24 billion Digital ServiceHolding Company in a drive to dominate ecommerce. Toinvestment is your marked be followed by a series of cash injections to make it debtfree by march. Move is to build and amazon is the the build move is to build a challenge to amazon. Chinesepshot of the market will stop rising that and adding to there is a deepening rout in chinese bonds. Analysts are expecting the pboc to inject one year cash by a targeting school with more than 300 billion yuan. Checking on the Events Calendar on the terminal, a busy day for pyd, earnings including china eastern and china light. Much more ahead on the china open. This is bloomberg. It is 9 00 a. M. In beijing, singapore, and hong kong. In tom mackenzie. , we areavid ingles counting down to the opening trade. Lets get to your top stories today. Trading in a trade deal. Oneoptimism of a potential after u. S. Equities hit a record. President trump said washington is ahead of schedule to sign parts of a trade deal with beijing. Traders byd bond pboc action as 35 billion worth of repo agreements matured today. Chinas 10 year yield surged by the most since april