Alibaba. Single day after a scorching start as consumers around the world look for bargains. Kathleen lets get to u. S. Stocks and how they ended. You can see the gains on the board are not large. However, go straight to the middle line, thats the s p 500. Another alltime high. 3093. It was a week of dueling trade headlines as chinas Commerce Department and white house Economic Advisor said yes, a phase i deal will involve a phase in tariffs. Tech stocks gains as well. Anything that is good for a trade deal. Global growth certainly helps. Tech shares, the nasdaq closing at another alltime high. 8475. What is interesting is on saturday, President Trump went out of his way to say wait a minute, i have not said yet anything about tariffs. Im not going to get rid of all tariffs. He did not say he would phase in some tariffs reductions. I think he is trained to tell us the deal is not sealed. Im the final say on what is going to happen. We will see how the markets deal with that today. At the end of the week on friday, it was all signals, green light for stocks. Haidi yes. The question for the brandnew week is looking for the next catalyst whether positive or negative when it comes to trade talks. Look at our asian futures setting up for the trading week. We are looking narrowly mix. Mixed. Nikkei futures down by 3 10 of 1 . Positive. Looking more in sydney, and upside of four tons of 1 going into the start of cash trading. New zealand, flat to kick off the week. A big week for more data as well. In particular, expecting the barrage of domestic activity. Indicators from china to add to the future of the economy that is continuing to be driving lower by the trade tensions. Lets get you to first word news with su keenan in new york. Su thank you. We start with the cleanup in hong kong. It is clearing up after a 24th straight weekend of unrest. Once again, tear gas was fired at a Shopping Mall and subway services were disrupted. Six months of protests have undermined hong kong. The city has fallen into a recession for the First Time Since the Global Financial crisis. The latest data shows Economic Activities fell more than 3 in the September Quarter and is expected to have fallen further since then. In spain, elections are being held for the second time this year. For the fourth time in as many years. The Election Results are unlikely to break the political logjam. The Prime Minister is expected to win, but his socialist party likely fails to gain an outright majority. Sanchezs decision of an election in the aftermath of the jailing of the cattle on separatist may have driven some of the voters from the far right box party. Money spitting money spinning single day enjoyed a scorching start. There were more than 16 billion of orders in the first 90 minutes, an estimated 500 million op million shoppers around the world are expected to take part in the sale with alibaba recruiting taylor swift and chinese superstar. They will also also operate the picture of the strength of consumer demand in china in the slowing economy. Meanwhile, in australia, they are bracing for more deficit in fires. The risk has reached the catastrophic level. Three people were killed and more than 150 homes destroyed in New South Wales as bushfires burned through areas that were rendered exceptionally dry after a twoyear drought. Cooler weather eased some of the immediate pressure but the situation is expected to worsen as the weather turns drier this week. A court in malaysia will decide on monday if the prosecution has made its case against former Prime Minister measuring for a sock in the one mbd scandal. He does nice any wrongdoing he denies any wrongdoing and the judge will rule on when the charges will be struck out or if the case will proceed. Prosecutors say he was part of a criminal breach of trust with some billions of dollars from one mbd. Global news, 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im su keenan. This is bloomberg. Haidi thank you. Rapid rising food costs has tumble pricing is threatening chinese policymakers. This as President Trump sows doubts about the prospects of a trade deal. Tom mackenzie joins us now from beijing for more. This is an inflation dilemma that policymakers find themselves in. Tom it is. What we are seeing is a greater divergence between Consumer Prices driven largely by its pickup in fault prices and Producer Prices where we are continuing to see those costs at the factory gates fall. I will break it down for you. Consumer prices, we saw 3. 8 . That was a sevenyear high that was for october. 3. 8 for Consumer Prices. A lot of that is down to port prices. Those rose 100 year to date. Those port prices are leading to higher prices for things like beef, lamb, chicken, other proteins of course as chinese consumers switch up because of the swine fever that is impacting the whole population. That is the Consumer Price number. Producer prices, this is where the source of concern is according to bloomberg intelligence. Producer prices fell 1. 6 for the month of october. That is a fourth straight month. What that means is it makes it that much more difficult for these companies to generate a profit. Part of this is in put prices have weakened. Also the demand picture is very soft as well for these factories and producers. Profits are expected to be pressured on the back of this. And the ability to invest in that is key for the broader growth picture. Bloomberg intelligence is saying this will be the focus, the Producer Prices. We saw the be boc cutting that mediumterm Lending Financing by five basis points. They expect additional cats. They say the pboc is focused on easing, but of course, the Consumer Price rises we are seeing in terms of the pork prices and overall the 3. 8 percent makes it that much more difficult for policymakers to enact stimulus to address those Producer Prices. There is that going on. It does pose something of a dilemma for officials, particularly as the trade concerns bubble up to the surface. Kathleen thats just it. Just when you think you have enough problems on your plate, maybe you have a phase one trade deal going on, President Trump manages to muddy the waters on the trade talks again. Reminding the pboc that this is not over yet. Tom absolutely. We had a week of positive News Headlines when it comes to the trade talks and then as you say, President Trump coming out and saying hang on a second, i have not agreed to remove all tariffs. Take a listen to what he had to say. Pres. Trump they are moving along, they are moving along. Theyve moved slowly, much too slowly for me. But they want to make the deal much more than i do. But the trade talks with china are moving along very nicely. If we make the deal we want, it will be a great deal. If its not a great deal, i will not make it. Tom President Trump saying the chinese want the deal more than he does, that he has not agreed to remove all tariffs. He did not rule out as you pointed out removing some tariffs. Larry kudlow had said earlier on in the week that if you were going to get a deal, there would be concessions he set around things like tariffs. From the chinese side, they said to awo sides had agreed phase removal of tariffs. The location for any signing of this phase i deal if we get to that point is up in the air. President trump saying it was going to happen in the u. S. , there were doubts toward the end of the last week over to whether it would happen over it would happen outside the u. S. It looks like a lot of work still to be done to close the gap around what is going to happen to these tariffs if they are removed in phases. We are looking for any time, any date in terms of when they may try to set up this meeting between the two president s to sign off on the easiest part of any trade deal. Kathleen seems to me there is a winwin with those phases. We shall see. That is Tom Mackenzie in beijing. Lets bring in Asset Management chief Market Strategist, all over persia. Thewere trading on watching screens and listening to these things. By friday, it looks like the games were not big and stocks but the rally continues on trade optimism. Donald trump says not so fast. Where do you think we are now . Oliver i do get the sense that we are very close to a trade deal. President trump saying that so fast, it is about getting the spotlight back on him. I think he was surprised that president xi went ahead and may those announcements that came out of beijing and took the spotlight away from him. Given the political situation in the u. S. , he wants to have the microphone and be able to dictate positive minute narratives and trade is positive for him. Shocked. Completely i think we started their weak the week on a positive note. Kathleen when you have the s p 500 and the nasdaq both hitting yet another record, they are both at alltime highs, is this stock market valued in such a way . Is the economy showing a strength in such a way that this rally can continue . Oliver we dont expect there to be meaningful new highs by before year end. But that is not to say we expect anything to be a material out turn. At the end of the day, the economy has performed better than most feared. Corporate earnings have performed better than most feared. And given the fact that the Federal Reserve and other Central Banks are kind of back to easing mode, it justifies these valuations. If you get a little bit of positive news from trade in a global macro picture, that is the catalyst for things to move another 5 higher or so. Haidi how long is not a positive catalyst before it turns negative . Isnt the danger that phrase one is priced in, we dont have the details of a deal, we dont have a location, dont have it signed yet. Does that suggest that Market Participants are looking at phase two and three as being closer to prices and they will be disappointed . Oliver that is the risk. Also, we dont know what the phasing phase reduction of tariffs looks like. There is a risk of disappointment there. At the end of the day, what Market Participants on what we are looking for is is there going to be a 2 Economic Growth number 42020, or are we going to come in much lower than that . Just a few months ago, there was a lot of talk about recession toward the end of this year into 2020. That talk us has largely gone away because the economy has performed well in the consumer has been there and continues to be there. You are seeing it with alibaba single day, the consumer around the world continues to be strong. There is reason for optimism. That is what you want to look for. You want to look for underlying Economic Data that is positive or at least apprising on the plus side. That will drive corporate earnings and ultimately valuations. Haidi as you said, the earnings has not been great. It has not been as horrible as some may have seen. But as but is that because we have low expectations and it was met or beaten those expectations . Oliver yeah, yearoveryear we are down on earnings. We are not down nearly as much. The Research Firm at the beginning of the quarter and end of the Third Quarter had expected a yearoveryear decline over 4 for corporate earnings in the u. S. We are coming in around 2 . Possibly going to be a one handle. That is much better than feared. Again, some people were expecting much worse numbers. You are seeing relative outperformance. The risk with that is of course that you still hit a stumbling block in at the end of the day, numbers are not great, which is why the Economic Growth story is important, why the market reacted positively last week and the expectations that a partial trade deal would get done. Kathleen when you look at markets around the world, you have interesting positions. You are neutral weight jeff hamm stocks, european stocks, and you are underweight emergingmarket equities. But you still see some attractive values there . Oliver yes, valuation and emerging markets continues to be attractive. And they have been. Our view is that it is a little bit of a value to trap. It is perpetually underperformed. Right now, investors around the world are still preferring per further growth story over the value story. Such a has continued to underperform. You see that in u. S. Markets if you look at the defensive sectors. They have underperformed. So heres is up 18 or today. Nasdaq, up 27 yeartodate. That is a big delta between the two. You are rewarding growth, emerging markets is a value story. Right now, value continues to be not favored. Kathleen you are overweight fixed income. You think bonds should do ok in this year going into next year. Global see our story bonds selloff persuade some investors to buy the dip, the 10 year up at 1. 94 . A lot of people are saying, maybe it is time to dip into the water. At least the auctions went well last week. Oliver we made the call on fixed income late last year. Around november, december timeframe. It certainly worked out. A lot of my colleagues thought we were on the crazy side. Expecting fixed income to get near doubledigit returns. And here we are with treasuries and municipals having done very well and highquality corporates have done having done well also. Treasury is0 year not exactly a highyield for 10 year treasuries. Given the fact that the fed is going to continue to stay loose and is more likely to decrease Interest Rates at the next turn then increase them, not to say it would be in the next meeting, we are pretty comfortable with that call. Haidi final word on japan, we have had five weeks of gains for japanese stocks. Things are looking positive. You are underwhelmed by that market though. Noter again, look, we are going to get every single call exactly right at the exact right time. On a longterm basis, we continue to favor u. S. Markets over japanese and asian markets as a whole. The japanese story is always changing, and it is good to see them succeed in some of their monetary and fiscal policy steps. We are happy about it. It is not that we are sitting here saying we missed one. Look, it is a decision we made an a question of where you deploy capital. Right now, we think on a riskadjusted and total return basis, overall, u. S. Fixed income and u. S. Largecap equities are going to continue to do better than other areas. Haidi great to have you. Asset management chief Market StrategistOliver Pursche joining us. Still ahead, we will discuss the aramco ipo. The outlook for oil. We will be joined by our gas later this hour. Kathleen , we will be live in madrid for the latest on the spanish election result. This is bloomberg. Kathleen now for a check of the latest business flash headlines. Alibaba has had alibaba has added them to its upcoming hong kong listing. It is said to have inviting a chinese bank to include the team with a decision expected on monday. Alibaba plans to start taking investor orders on friday and will price the offer the following week. The timing of the secondary listing may still change, but it could raise as much as 15 billion u. S. Dollars. Haidi tencent aims to name aims to make more console games with its partnership with nintendo. Publisher of call of duty. Tencent is also aiming to step up its dominance of the chinese gay market and it is planning others to younger female players. Socialist party look set to win the greatest number of states after the forced general election in four years. Fragmented results could mean weeks of negotiation on forming a government. Lets go live to madrid. Ben sills joins us. Great to have you. There is a great deal of uncertainty in that result and what it means for governments in the coming weeks and months. Ben yes, exactly. The politicians going into this were scratching their heads about how they were going to resolve the issue with the parliament looking so fragmented. And there has been no real shift in this result to point the way forward, which is bad news for the acting Prime Minister. He has got the most votes, the biggest number of seats, but he got the advance that justified the gamble he has taken. I think he is under pressure actually come tomorrow morning. Kathleen the fourth election in four years, he does not have a majority, the farright thirdplace party is now vox. Everybody seemed to run on this on them of cracking down cot elan independence movement. Where does this leave the president . Hes guilty for allowing this surge of nationalism. He triggered this election because he could not get the terms he wanted from his potential partners. And he triggered it knowing that there was going to be a series of events on the front of that would potentially and rage both the catalan separatists and the spanish nationalists. Also at the same time, he was digging up general franco from his grave outside madrid. Both of those things it seems has pushed it towards the extremes. A moreaves sanchez with complicated political situation to manage. Haidi it has been more than half a decade since any Major Economic reforms have gone through. With the political stalemate, are we starting to see the cracks show in the Economic Data . Ben thats the big question. The economy is slowing. The rest of europe is slowing more. Germany has been teetering on the brink of recession. There is obviously the trade war going on between the u. S. And china. The u. S. Could get sucked into it. We have brexit there. There are a lot of risks out there for the spanish economy. So far it has held up on its autopilot course but it is not the time where you want to have the country with no proper government at the head of it. Kathleen ben sills, thank you very much. Ben sills joining us from madrid. Late for you, so we are appreciative that you can take the time. As for the rest of you, you can get a roundup of the stories you need to know to get your day going in todays edition of daybreak. Bloomberg subscribers can go to dayb and their terminals and is also available on mobile in the bloomberg anywhere app. Check it out. This is bloomberg. Haidi stroudwatts and city. Kathleen im Kathleen Hays in new york. Goldman sachs hitting trouble with its new apple card, a viral tweet from a tech entrepreneur alleged gender discrimination in the cards algorithms and a wall street regulator is looking into it. Finance reporter sherita harr has written one of the latest stories. He joins us to talk about this story that has exploded in a couple of days. It was not just any tech entrepreneur, it was a man whose wife was the same Credit Rating with the same Credit Ratings as his saying my wife did not get this card and i do. Right. That is the beauty here. It started with a series of reports from david hanson where he was complaining at how that apple card gave him many times the credit limit his wife got, despite them sharing finances, despite her. Having a better credit score. For some reason, the it gained attraction online in a number of other customers who shared their experiences. To add insult to injury, the apple cofounder road in saying he faced similar problems. Before you know it, the wall street regulator said they are opening a probe into Goldman Sachs to see if the algorithm used for this credit card in any way even unintentionally discriminates against women. And thats a session we are facing now. The situation we are facing now. Haidi how much of a headache will this continue to be for goldman . Sridhar i think this is more than just goldman or even apple. Apple and goldman are two rocket names, most recognizable names in tech and finance. They have become lightning rogs rods in a growing debate in how lenders, use these complex models these algorithms to determine how americans borrow money and if it leads to unintentional results where certain groups of people whether it is women, minorities, indepth facing hardships. That is a debate that has been gaining traction in washington. You have lawmakers focused on this issue, starting when they set up a new task force in the House Financial Services committee. More tech more and creeping into the Financial Services space, you will see this issue being raised repeatedly. Haidi hugely problematic. Sridhar natarajan, our Bloomberg News finance reporter joining us. Lots more to come. This is bloomberg. Haidi we are counting down to the market open in sydney and half an hours time, futures looking optimistic as u. S. Stocks closed another record high. Investors looking to this week for fresh catalysts and guidelines where the next step of the trade negotiations and potential deal would go and a big week for a barrage of chinese activity indicators this week as well. Also watching the outcome of alibaba singles day given the Global Consumer is becoming more important to this growth picture. I am haidi stroudwatts. Kathleen i am Kathleen Hays. Requestmocrats have a witnessed by republicans to testify this week as impeachments begin. Begin. Achment hearings they will only include people with knowledge of President Trumps actions and not joe bidens son or the anonymous whistleblower. Is there a pattern to the names on the republican list . In such a way democrats are saying yes to some and no to others . There is. The republican list includes people from the 2016 election, involved in providing damaging about Hillary Clinton and donald trump. Those people are a part of a group which explored ukraine prior to the phone call President Trump had. What the republicans are saying is you have to understand what was happening in ukraine before that call was made to understand the president s state of mind as he was making the phone call. Democrats are saying it is not the issue we are talking about. We are focused on his actions in the phone call, the quid pro quo holding up military aid in return for a promise of doing investigations into the bidens. The democrats say we are going to look at people who can speak to the president s actions. We are not going to rehash the investigations about the 2016 Election Campaign. What have the president and republicans been saying . On the talk shows republicans were somewhat all over the map. Some of them ruled out doing anything with the impeachment inquiry. Saying if the whistleblower is not brought forward or identified and allowed to testify, the articles of impeachment when they arrive at the senate are dead on arrival. That was from lindsey graham. Others who are taking a more down the center of the road, if you will, saying if it is proven the actions of the president were wrong in terms of asking for some kind of political consideration in return for the financial aid, that would be problematic. One republican from texas said that might justify using impeachment as the possible tool , although he didnt say it was an impeachable offense. The republicans have had a variety of different explanations, but most of them act of the 2016 rationale. Lets look at what happened for what goes before. Thank you for joining us. Our bloomberg editor to sort it out. Now the first word news with su keenan. U. K. Ore fallout in the from the brexit drama. Moodys cut the sovereign Credit Rating to a negative outlook, citing a weaker ability to set the brexituse of uncertainty. This comes at the start of an Election Campaign and the agency notes increasing inertia and paralysis. The leading Political Parties are appealing promotes appealing for votes with both promising higher government. The bolivian president has resigned after the army called on him to go after a wave of street protest. He had agreed to call a new election after the organization of american states said last month was marred by serious irregularities. He had served three put three months three terms and claimed a fourth victory in the tainted election. The powerful cyclone that hit bangladesh and northeastern anglian northeastern india killed hundreds of thousand 1500 people, hundreds of itusands moved to safety as crosses the coastline. It has sustained winds 120 Kilometers Per Hour and is expected to drive ac surge two meters above tide levels. A sea surge above tide levels. 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. Im su keenan. This is bloomberg. Futuresook at the asian for the start of the trading week here in sydney, looking positive. Nikkei futures down. 3 , the kospi looking mildly positive,. 1 higher. We are starting to see slow gains in new zealand as investors are searching for fresh catalysts into what comes next in the trade talks. Lets take a look at what else we are watching. Editor adam haigh is with us. One area you are looking at has been hong kong. They have done well despite turmoil. His liquidity a major reason . Is liquidity a major reas on . Adam it is one part of the globalin hong kong, but equities have performed very well. We have five weeks of backtoback gains, hitting fresh records, almost by the day in the u. S. A lot of markets are showing what you are seeing on this chart, highlighting hong kong. It is applicable in other places as well, your each the momentum stage, overbought you reach the momentum stage and it is overbought. The conversation turns into, is now the right time to be selling into the rally or do we want to add during times of risk . Bridget quite pipeline say this is the time to think about selling. One of the reasons cited by the people at suffolk securities was they had to downgrade earnings forecasts again. The outlook from the protests and recession we have got mystically but also concern about what growth is occurring on the mainland and how policy is responding in china. It is a tricky backdrop for a market which has done well. It will be interesting to see how the week pans out for the hong kong market, but certainly people saying now is the time to be starting to put a live on the rally. Morgann people at j. P. Are saying it is the start of a huge unwind. Can it be sustained . A big debate, one continuing to have real sides of the argument. You have seen this very clear recovery in value stocks relative to growth. Basically the end of august, really. People say it is a shortterm move, no longevity to it. For j. P. Morgan, they are in the camp that it has further to run. They say there is a sea change in how the Global Economic indicators are starting to perform and value stocks have done well during this time when you have had rising yields in sovereign bond markets and they see another 150 basis points higher for longterm yields. They say if rally stocks perform well in the environment, have a look at that chart. You could have that continuation , being alllows multimonth or multiyear move. They want to be positioned in the deep value sectors. Haigh. N adam check out our gtv library for the charts he talked about. Gtv on the bloomberg terminal. Start,ff to a scorching 16 billion worth of purchases in the first 90 minutes. It is the equivalent of more than half of last years record for the entire 24 hours. Lets go to the base. , the significance of singles day this year it is always significant but this year, why important . The 11th annual, the first time it is held since jack ma step down and it is being overseen by the president of tau bow. We are already seeing sales on pace to surpass the record of 31 billion. This is a bellwether for the Consumer Sentiment in china and business. The numbers should be taken with a grain of salt because they dont directly translate into revenue and the bottom line given the discounting. But we have seen alibaba stay resilient amid the Overall Economic slowdown. Revenue jumped 40 beating expectations. Singles days numbers showing resiliency. I want to point out alibaba has mainly stayed shielded from the trade war. We have seen a few u. S. Brands on a list of 84 brands alibaba has kept track of, showing apple on the list to Show Companies in the first hour of sales reaching 100 million r b. Macro headwinds we are seeing the singles day Numbers Holding up. Wang covering singles day which is now a global phenomenon. Thank you so much. We will be back with you throughout the course of the day. Breaking news, dbs Group Earnings reporting net income for the Third Quarter which beat average estimates. Singaporean. Income 2. 46 billion seeing. Singaporean. We were expecting as a quality under pressure with the slowdown in china given the exposure dbs has to chinese and the hong kong market. Net interest margins for the Third Quarter 1. 9 . Quarter on quarter 1. 86 . Income 814ission million sing. Not a bad set. We expected wealth benefit from the sort of protests and situation in hong kong benefiting the singaporean lenders. We will discuss those more with the dbs ceo himself. He will be joining us from the fintech festival. It is 11 50 a. M. Hong kong time. This is bloomberg. Haidi investors got their hands on saudi aramcos longawaited ipo. The 658 page document has more questions than answers. Energy reporter james born has been following these. What do we learn . We got the latest profit numbers. But there is a lack of clarity in this prospectus despite the 658 pages. Haidi i think you read all of it. I did. We are waiting to hear the size of the stake they will sell and the pricing range. Those are the all important factors for investors to consider whether to plow cash into this. Individuals can hold up to 1. 5 of shares. The bill will open december 17 with final pricing december 5. All will become clear in the not too distant future. Of risksed the sort facing its investments. There are many different with terrorism in september with the drone attacks on aramcos facilities which took out a large portion of their production. And Climate Change is mentioned as a risk. Different facets of the risk toging from direct impact indirect to reduce demand over increased uptake of electric vehicles. The prospectus includes a study that says Peak Oil Demand in the next 20 years, the first time aramco has alluded to the reality that oil could be soon approaching peaking in demand. Kathleen the range of estimate trillioning like 1. 1 to 2. 5 trillion. You would assume a lower price is better for demand, etc. The saudis have done their own home price oil wealthy people to say they will buy into it. How is this going to go . Certainly going to be fascinating conversations around this. There is a lot at stake for the crown prince. He has really staked his reputation on this. As you mentioned, his ideal price level was around 2 trillion in valuation. I think in private most people expect he will settle for something less around 1. 6 trillion dollars has been mentioned. We will find out whether he will get that. He has been taking one or two measures to sweeten the offer to make sure he gets across the line. They have lowered taxes three times, the kingdom. They are talking of boosting dividends which will sweeten it for investors. Will be looking to get saudi investors involved and there is talk china will be involved in this. Haidi always appreciate your time. Asia Energy Reporter with the latest on the aramco ipo. Lets get perspective on the saudi view, someone who closely follows the Global Crude Oil market and his followers the potential ipo. Is following the potential ipo. If the saudis are now recognizing or acknowledging we are going to see Peak Oil Demand, the rest of the market should worry, or are they coming around to the mainstream market view . There is a couple pieces. One is maybe that will be the case. 20 years out is a longtime. If we need to bet on what will happen between now and 20 years, i think a couple of things are important. In the 30 year window we will have 1. 2 billion more people on the earth. So they will be consuming oil and hydrocarbons of various forms in 20 years. And in a 20 year time window, china and india will be two or three times higher in gdp. More people with money consuming more oil. On the supply or production side, there is the facet, aramco is one of the lowestcost producers. Does that ensure circuit success . Jason i think so. If we think of the cost of oil which most analysts will look at, it costs lower than Something Like what used to be like oilsands from ultradeep waters, so a low price point to produce crude in a market where demand will be , that is demographics a longterm upside. When it comes to a trade war turning into a trade deal, we saw the s p 500 and the , oilq, new record highs though looking good. A lot of commodities did look good friday. West texas above 57 a barrel. Do you see this continuing in the commodities space . Jason it is being driven by quantitative quantitative easing, the expansion of the balance sheet, plus fed rate cuts. That has been stimulative. The other thing is the chinese manufacturing pmis increased over the last three months. It has accelerated in terms of expansion. Those things are positive. That is relatively supportive for commodities. I would not hinge on a broad sweeping trade deal. We have seen folks the last year hope andf have lots of expectations. Each time so far we have seen it end in tears. I would be skeptical. The inflation data over the weekend from china, forget cpi, port prices, but the Producer Price is going down again. That is bad for profits. That is bad for investment in china. Great story on bloomberg pointing out that china is going to export lower factory prices to the rest of the world. What does it mean for commodities . Jason the biggest thing is what does manufacturing cement look like from china demand look like from china . Producer prices could also reflect commodities were week because china was Producer Prices could reflect commodities were weak because china was weak. Look at Something Like aluminum. I wrote something at the beginning of the year. Look at aluminum. Over the last couple of weeks. That is on the big spike over the last couple of weeks. Tailwinds from the fed, those are the factors which i think will mean a lot for china and for Everything Else commodities related. I want to look at the decoupling and underperformance of Global Commodities against louisville stocks. It is a longer term trend but the difference has become stark given the outperformance of stocks at record highs. Is this more a u. S. Dollars story . A big the dollar story is piece of it. For oil prices there is shale production in the u. S. In the middle of the cost curve. It is not a swing producer but you can get stuff cheaper than the oilsands or deep water. That has got flexibility. That has kept oil prices depressed. I would say in general the metals prices, much more sensitive to what is going on in china for manufacturing and sensitive to things Like Central Bank balance sheets. We will have to leave it there. Jason schenker, prestige economics, joining us from texas. Plenty more to come. This is bloomberg. Australia is bracing for another week of devastating brushfires. Sydni facing a catastrophic wanting. Warning. Howere the warning severe is the threat . It has been terrible. Three people died, hundreds of properties have been destroyed variousouth wales and it has been an unprecedented start to the season, two years of the drought have left the state tinderbox drive. With temperatures forecast to rise, authorities are warning the greater sydney area faces a catastrophic threat. That is the highest level in the system. It is the First Time Since the system was introduced a decade ago which catastrophic that catastrophic has been applied. Ofhleen is this the kind thing that happens every decade or two in australia . How much is it Climate Change . It is like in california. How about sydney . That is one of the questions being asked. A question that Scott Morrisons government has been trying to sidestep the past couple of days. The morrison government is procoal and has faced criticism for refusing to legislate the paris accord commitment. Ministers have been detained to avoid the question whether it is Climate Change related. The deputy Prime Minister said people need assistance. They dont need a debate whether or not it is linked to global warming. Kohls he said such such calls are down to the woke capital city greenies. Are managing editor frost really and new zealand. More is still ahead. A busy week ahead of asian data. Sarah hunter will be with us. This is bloomberg. This is bloomberg. Haidi good morning, i have haidi stroudwatts. We are an hour from the open of markets in south korea and japan. Kathleen i am Kathleen Hays. Welcome to daybreak asia. Rising food costs and chinas leaders with a headache amid new doubts about a trade deal. The price seems right for alibaba, singles day off to a scorching start as shoppers around the world look for bargains. Spain holds