Of a total breakdown. And technical glitches marred the launch of disneys new streaming service. To breakingirst, news from south korea. The jobless rate coming in at 3. 5 . This is in line with estimates but slightly higher than the previous month. Add 419 thousand jobs in october, more than they did in september, which was already quite a strong job scheme number. Pe number. That is helping to offset some losses,anufacturing job not to mention declines in retail employment. In south korea they have been really supported by fiscal policy. In budget is helping growth the public sector. Right now, the jobless rate coming in at 3. 5 for the month of october. Lets see how we are doing in the markets in asia. Overnight,d messages hearing from President Trump in new york, threatening the possibility of more tariffs if phase one trade deal doesnt get done. Hasydney, as that market just come online, new zealand,. Rading is underway with Fourth QuarterInflation Expectations, it plummeted off a cliff yesterday afternoon. The rpme expectations will cut for a third time this afternoon. We are watching trading in the next hour in japan as well. Looking at some pretty flat to negative starts in japan as well as south korea. Energy futures, pretty much stockss after u. S. Erased most of their gains overnight. A first word update. Brushfires continue to burn across New South Wales and queensland, with parts of sydney now under threat. Firefighters struggled to contain a blaze 20 kilometers north of the center of the city. Australia has been left parched and vulnerable by a two year drought. Once again. Choking the air quality reading rose above 400 on tuesday, about eight times the internationally accepted level. There is pressure on the government to find a solution. World Health Organization data last year showed india had the 10 most polluted cities in the world. Traders and bankers are hoping a better than expect did Third Quarter would boost their yearend pay. They are likely to be disappointed. A report says equity traders dropsared the worst with earlier,om the year while fixed income traders may only face 5 cuts. Former mayor Michael Bloomberg march 3d to run in the primary in arkansas. Michael bloomberg is the founder and owner of bloomberg news. He says he has not yet made a formal decision about whether he will run for president. Global news 24 hours a day and on tictoc on twitter powered by 2700 journalists and analysts in 120 countries. This is bloomberg. Isdi President Trump ratcheting up the pressure on china by warning he will substantially raise tariffs if trade talks failed to produce a deal. Speaking in new york, he said talks are proceeding well, but he will only take a deal if it is good for the u. S. Mr. Trump i tell everybody, if we dont make a deal, we are going to substantially raise tariffs. They will be raised very substantially. That will be true for other countries that mistreat us. We have been mistreated by so many countries. Shery ahn the president also said that policy is hurting the u. S. By shunning negative rates. Lets bring our columnist and a senior economist. Joe, let me start with you. Did we get any more insight on where we are at with the phase one trade deal with china . Negotiations are in the negotiation stage of this. The comments the president made today may have been as much for the domestic audience as for china. They are moving closer to getting some sort of phase one , which will not be the overall trade agreement both sides say they are seeking, but we still dont know when and where this will be made final. The president had plans to meet with xi jinping this month at the aborted aipac meetings in that is not happening now, so they are still haggling over the date and time. Haidi and of course, President Trump is putting growth at the center of his reelection campaign. Come 2020, what does that look like . Joe most voters are not going to be responding to what the fed does or whether it holds off on any other changes of Interest Rates. What they will be responding to our the Economic Conditions they feel in august of next year. If there is a sudden slowdown in the economy, and acceleration of inflation, that will have a much greater effect on what the voters will be doing. Now, theatus quo is economy is moving along fairly well and probably one of trumps biggest strengths going into his reelection campaign. What changes between now and will have a greater impact. Will have a greater impact. Shery ahn President Trump also taking a jab at the federal reserve. What do you make of his comments on negative rates . First of all, i would say i dont agree with him that the the u. S. Economy. The fed was right there when the crisis happened and it took them a lot of effort and innovation , andally fight this crisis , at leaste reason partially, why we are where we are right now. He cannot attribute success in Economic Growth to just his policies, the president. Its really a consolidated effort by everybody. But is the u. S. At a u. S. Disadvantage as the president claims because other countries have a lower rate . Jelena he is probably referring to the dollar strength, which has hurt manufacturers substantially. Overall, i dont think the country is at a disadvantage. We have better Economic Growth, so we should have higher Interest Rates. Thats economics at play. Haidi chairman powell had his chance to respond to the pressure coming from the president when he has his chance to respond to the pressure coming from the president when he testifies tomorrow. What is he likely to say . He will likely repeat the same message he delivered at his press conference. Assess whatoing to the level of Interest Rates is doing to the u. S. Economy. This was reiterated by a lot of different fed speakers including voters and nonvoters, that they would like to stop here and see what happens. I think he will not deviate much from that message tomorrow. Shery ahn thank you so much. We will continue our coverage as jay powell prepares to testify before congress at 11 a. M. On wednesday in new york, midnight thursday in hong kong. Plus, San Francisco fed president mary daly speaks with bloomberg at 6 30 a. M. Thursday if you are watching in sydney. Coming up, hong kong is bracing for another day of chaos. You can see live pictures there is the city wakes up. We will get the latest on the unrest. This is bloomberg. This is daybreak asia. Back ton lets get President Trumps speech today where he got back to one of his favorite past times bashing the fed. He called for a change of strategy. Investors now is an and advisor on due diligence. Great to have you with us. The chart on the bloomberg shows that President Trumps speech didnt do much. But we are looking at longterm reaction in the markets. Weve had positive trade headlines. Weve seen the s p 500 rising above its 200 Day Moving Average on the relative strength shown panel. Bottom have the markets finally priced in all of the feds potential easing that could come, and do i think we have modest gains ahead of us, especially through the end of the year. I think the market is encouraged by the fact that the fed will probably not cut again, notwithstanding President Trumps comments. I think overall, fundamentals are starting to see soft returns, which is what we like to see as an active manager. I think we will continue to see modest gains through the end of the year. Tradeshn we have seen this year when it comes to safe havens really skyrocket, but now that seems to be unraveling as we continue to see Risk Appetite in the market. Where are we headed in terms of the riskier assets . We will see risk assets outperform. You saw the risk on trade, if you will, like golden more defensive names earlier in the year gold and more defensive names earlier in the year. There was more uncertainty on trade talks. We were not sure how that would affect the overall economy. There was uncertainty about what the fed would do. I think people thought the economy was slowing down more than it was. Overall, people got defensive because of the uncertainty surrounding the markets. But now, things are progressing. The economy is doing better than people thought. Corporate earnings have been better than expected, and the fed has generally made the right decision and not cutting rates again. The market generally likes those things. I expect to see appetite for risk increase. Too much exuberance based on expectations that a partial trade deal will be done . Think there is exuberance. I dont think the market is skyrocketing. Ofhink people make decisions whether to buy or sell stock based on fundamentals. I think not having headline risk makes people more likely to make their decisions on fundamentals, but i dont think there is exuberance in the market by any means. Not far from still record highs though. In terms of earnings, it wasnt a terrible earnings season, but is that because expectations were low going in. Yes, expectations were low, and to your point, the market is not necessarily overvalued. If you look at what earnings have done and where expectations are, we are not in valuation territory. Earnings were better than so stock prices have been better than expected. Shery ahn we had a very busy day when it comes to corporate issuance in high yields. Some are saying we are seeing minimum rates, maximum profits and that wont last long, so the next recession could come as that unwinds. Is this something we should be cautious of as we continue to taken market moves . No, i think what you need to look at isnt necessarily issuance, but corporations and whether they are able to service their debt. If you look back 10 years before the crisis, the level and ability to service debt they had, its very good right now. The leverage ratio is not high at all. Even if we go into another recession, generally speaking, these companies are in a position to service the debt they have. Haidi we are seeing a little pressure on treasury yields in todays session. Where do you see this going for the rest of the year . I think they will stabilize around the levels we saw last week. Yes, we have seen pressure. I think President Trumps comments had a little to do with that. But frankly, treasury yields were too low and they were low due to technical issues related to demand. The u. S. Is certainly the best game in town in terms of being able to get a good return in terms of coupons and low default risks. That really put pressure on yields. But i think we are through that, and yields should stabilize at this point. I dont for see them going much higher. Hopefully, they dont go much lower. They are getting closer to where they should be. Before, they were much lower than they shouldve been. We are starting to see the slowdown in china is not improving. Data,look at the latest the boc is easing fairly aggressively. Is that enough to deter you from going in at the moment . , valuations are very attractive and overall, i think a deal is continuing to progress, a deal will get done. Chinasderestimate leaderships ability to pull the levers and stabilize their economy. They were concerned about trade tensions, how the trade wars, if you will, would impact chinas growth. I think there is less of a risk and chinas impact on the rest of the asian markets is substantial. Based on where they are today, i am definitely bullish on and we arerkets, overweight emerging markets right now as well because valuations are backtracking. Shery ahn we are seeing pmi start to bottom out. Is that a place for you would find some bargains . Absolutely. Overall, if you look at our portfolio, one of the areas where we are seeing a little risk and focusing on valuations is international equities, emerging markets, and developed markets. In germany, we had better than expected economic data. Worksggs it brexit itself out in the u. K. , there are opportunities overseas. But a strong dollar does not necessarily bode well for International Investments when you are investing in dollar terms. Continues to strengthen, that would potentially be a headwind for international and emerging equities. You so much for joining us. Coming up next, more travel disruption in hong kong with major train hubs closed. Ontest on the arrest the unrest ahead. This is bloomberg. Haidi this is daybreak asia. More disruption is expected in hong kong wednesday morning as clashes between protesters and police continued late into tuesday night. The worsening violence is drawing more international attention, with u. S. Senate Majority Leader Mitch Mcconnell vowing to work on delayed legislation to support the prodemocracy protest. People are starting their commute to work in hong kong now. How are they doing . What are the disruptions they are working with so far . The trains have been open for a little more than an hour, running unlimited service. We are at the central station, where we have seen people stream in and out this morning. The trains were more crowded than usual according to people we spoke to. Some buses have also been suspended, making a more challenging commute for those trying to avoid disruptions by protesters. The new strategy is putting gridlock in central commercial areas during the weekdays. Clashes intensified tuesday night and central in several parts of the city. The Chinese University of hong kong was the site of a pitched battle last night where violence reached a deadly level. Several injuries were reported among students there who make up the heart of the more hardline demonstrations. Of those arrested monday, around two thirds of them were students. This violence has sparked debate among the prodemocracy camp about their strategy moving forward and their political goals. What are we expecting from carrie lam or potentially from beijing . We have already seen chief maintain aarrie lam line around her desire to maintain law and order. Of late hasministry commented on the need to strengthen security laws in hong kong. Seeing u. S. Re senators also grow increasingly restless over what they see is a delay in pushing for a bill democracy the pro movement in hong kong. Mitch mcconnell on tuesday denounced what he called beijings insatiable thirst for control. Bear in mind hong kong is one of several pressure points in the u. S. China trade negotiations as President Trump seeks a deal with beijing. Here in hong kong, tensions continue. We are not seeing the government ine or beijing back down their rhetoric. There is concern that this increased violence could be used to justify measures such as a curfew, perhaps invoking emergency laws which allow for the introduction of the allowed for the introduction of the antimask law a couple of months ago. You a quick get check of the latest business flash headlines. Ferragamo has been hit hard by the protest in hong kong. Shares fell 24 in october. Reportedury brands Quarterly Sales declines between 25 30 5 . Also cited slow growth in china. Shery ahn a singapore internet, and he surged after winning a boost from the mobile version of call of duty. The company is raising its outlook for gaming and revenue. Revenue tripled to 600 million u. S. Dollars in the most recent quarter. Nissan has landed a blow and is saying its undecided on whether to make a payout at all. The carmakers its forecasts for forecast for profits for the year. Renault stands to suffer the most. We will get a check on Consumer Confidence in australia. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Turn into the australian economy, breaking news crossing the bloomberg, the Consumer Confidence index for the month of november coming in at 97. Uptake of 4. 5 from the prior number of 92. 8. Isth on month, that reading 4. 5 percent higher, following contraction in the month of october. Lets get some context and reaction on those numbers. I am joined by the westpac senior economist matthew. Great to have you. It is a rebound, but still in contraction, really. Matthew we are seeing an initial shock. A record low cash rate last month. Some of the global backdrop has improved in the last month but we have not retraced all of that decline. Sentiment is down 4 since the rba started cutting Interest Rates. We are below the 100 line so we have more pessimists than optimists and it is looking soft as a crucial leader into the christmas sales season. Up this charthrow which illustrates the conundrums are Central Banks. For the rba particularly as they are using. This idea that we are entering into the reversal phase where the more they tease, the more households, if you take a look at Consumer Sentiment, start to get unnerved by is there something sinister going on . Matthew that is exactly what is happening. It is. The move in june, july, and october have unsettled consumers, to a degree, worried about what the economy is. The major reaction was around the Economic Outlook component for the index. So that whole piece around the rbas ever lower Interest Rate and the uncertainty it speaks to about the australian Economic Outlook seems to be the overriding concern. You have three rate kites, 75 basis points, and easing from the rba. Tax relief for the consumer. Yet here we are with Consumer Sentiment down 4 since those measures rolled out. Clearly, the cash flow affects our being more than offset by these concerns about the economy. The consumer looks to be prioritizing saving overspending. It is a conundrum for the policymakers. How much have we seen in terms of tightening the labor market . Matthew around the labor market, Consumer Expectations deteriorated this month. Unemployment Expectations Index measures consumers that expect unemployment to rise rather than fall. That index rose this month. It is consistent with a drift higher in the Unemployment Rate. Underemployment rate measures. It is pointing to some increase in slack in the labor market, which is something we expect to come to bear on the rba decisionmaking a month ahead. Shery what about slack in the new zealand economy . Westpac expecting the rbnz to cut the cash rate on wednesday 2. 75 . What are you seeing there . Matthew there has been a bit of a mixed few quarters. We saw some tightening prior to the most recent data where we saw the Unemployment Rate rise again. Around the is a call rate cut. They will cut a 25 basis point move, not just on the back of the data, but also indications that Inflation Expectations have been deteriorating. That is a very important anchor for the reserve bank and they will be looking to hit off any reduction in Inflation Expectations before it becomes too entrenched. We think it is set to cut today but it is quite an even call. The Inflation Expectation reading selloff a cliff yesterday afternoon. When it comes to what the future holds for policy, for the last few weeks, we have been talking about qe, unconventional Monetary Policy in this part of the world in more noise. The governor will be speaking at a speech later on this month. Is this becoming more of a possibility that they are analyzing and studying models that could possibly work here and what does that look like given we know that, for example, mortgagebacked securities look very different here versus the market in the u. S. . Matthew theres a lot of considerations around unconventional policy issues in australia but we are having more indications that the rba is starting to think more carefully about these policy options, particularly the statement of Monetary Policy that indicated policy in terms of Interest Rate policy was getting close to the point where they would need to consider these alternatives. Theres a lot of things to consider. What was interesting about that commentary was that it seemed to describe those policy options as more of a transitional issue. Rather than break glass in case of emergency style of policy measure, this was a way to ensure that their existing policy tools were more effective. That seems to be the gist of how they were describing things. I think that speech will be extremely important in light of where we are. Interest rates having a more mixed effect, diminished cash flow impact on the consumer space. More unsettling for confidence and at most, maybe, preventing an unwanted rise in the currency, but in terms of the wider channel for policy, we need to start looking at other options. We think they will be moving in that direction. A trade deal in the australian economy . Matthew we think it will go around longterm agreements in trade. Next year is a president ial Election Year in the u. S. And that will bring its own layer of uncertainty, and as we have seen through the course of the trade disputes, it has not been an even pass at any stage. Even if we do get some resolution, it is hard to know exactly how permanent that may be or how wide reaching that may be. We think the backdrop will remain uncertain into 2020. Shery especially if we look at part two or part three of video. Great to have you with us. Westpac senior economist Matthew Hassan here in sydney. We are counting down to that rbnz rate call in just about two hours time. That is 9 00 a. M. In hong kong. On friday, we will be speaking to the man in charge himself, who joins us on daybreak australia. 6 30 a. M. If you are watching in hong kong. Emergency crews in australia continue to battle more than 70 bushfires across New South Wales and queensland. Outbreaks in suburbs of sydney coming under control now but the political debate over the link to Climate Change continues to rage on. Lets get an update from ed johnson. What is the latest that we have . D sydney had a reprieve despite facing catastrophic fire danger warning yesterday. Outbreaks of fire were really limited to a handful of incidents. The closest was 20 kilometers from the city in a suburb where there was some activity and a plane quickly swooped in and doused nearby houses with fire retardant. That danger level has been dropped three notches down to very high. The attention is really focusing further up the coast about 200 or 300 kilometers further up the coast from sydney. 75 burning in New South Wales. 60 and queensland. The worst is far from over for those rural communities. Shery how does all of this affecting the Energy Debate . Said in her preface, we certainly are seeing heightened political debates around Climate Change and missions in australia and Prime MinisterScott Morrisons record on tackling emissions is coming under scrutiny. It is important to keep a sense of perspective at a time like this when political passions are running high. Ofhfires are part and parcel the australian landscape. They have been for hundreds of years if not thousands of years, and we are the worlds driest inhabited continent. But again, you look at the data from the bureau of meteorology, and they say that his 1978, the bushfire seasoning australia is getting longer. It is getting more intense, and they say that Climate Change is influencing that. Shery at theshery end of the day haidi at the end of the day, is it unlikely we will see a change to Climate Change policy . Ed the government has been insistent it will meet its Paris Agreement commitments. Scott morrison said repeatedly that they do stress that australias contribution to global emissions is just 1. 3 . Australia ishat the worlds thirdlargest exporter of fossil fuels, and with more coal mines getting they wantn australia, the government to have a cold, hard look at that. Shery thank you so much for that. Ed johnson. Lets get a quick check up on how markets are trading in the asian session. We are seeing the asx 200 pretty flat. Health care and utilities leading the gains but being offset iv energy and material sector, which is a drag on the index. Kiwi stops rising for five consecutive sessions. We are talking about a three week high ahead of that rbnz Rate Decision where markets are pricing in a cut to. 7 5 . A 25 basis point cut. We can futures down. The nikkei finished at the highest level since october of 2018 and we have a slightly stronger japanese yen at the moment. U. S. Futures also under pressure. This after the s p 500 gained ground. At one point, pushed through the 3100 point, but still finished off session highs as we had President Trump threatening more tariffs on china. Lets now get the first word news with jessica summers. Jessica thanks. President trump is ratcheting up the pressure on china by warning he will substantially raise tariffs if trade talks failed to produce a deal. Speaking at the Economic Club of new york, he said beijing is desperate to reach an accord but that will only happen if it is good for the u. S. The president did say the talks are progressing well but said he would raise tariffs against any country that caused problems for the u. S. Pres. Trump it is going to 15 very soon, and i tell this to larry. I tell it to everybody. If we do not make a deal, we are going to substantially raise those tariffs. That is going to be true for other countries that mistreat us, too. We have been mistreated by so many countries. Jessica in that same speech, President Trump renewed his assault on the fed, saying chairman jay powell is hurting usings. By not negative rates. The president said fed policy is putting america at a disadvantage and called for a change of strategy. The perfect cut rates last month for the third time this year and signaled it is now on hold. The u. S. Is putting pressure on the wto by raising the possibility of blocking approval for the institutions budget and effectively stopping it from working. The move marks an escalation in the u. S. Approach towards the trade body, which President Trump has battened to withdraw from entirely. The u. S. Contributes more money than any other country to the wtos annual budget. Citykong police warned the is on the verge of what they call total breakdown as protests rage on with further disruptions to the transport network expected on wednesday. Demonstrators that fire to several locations tuesday and clashes with police at the University Campus continued into the night. The unrest is increasingly harming the economy, but that he saying falling below that 27,000 level this week. 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 jessica summers. This is bloomberg. Haidi thank you. Coming up next, disneys big streaming service debut is not quite so magical. The launch is marred by technical glitches with overwhelming demand. This is bloomberg. Idi this is daybreak asia i am haidi stroudwatts in sydney. Shery i am shery ahn in new york. Technical glitches marred disneys Video Service and disney is blaming it all on strong demand. Disney plus arrives in australia, new zealand, and puerto rico next week. Su keenan has more on this story. Can you call the u. S. Launch a success when you have had technical glitches . They say it was because it was so popular. Su disney is framing it as a raging success. They were very much excited. Disney fans waiting as they rolled it out, big night, across all different cities. What they got when they logged on, as you see right there, an error message that says unable to access it. The critics were quick to roll in, saying disney plus is almost here and disney plus turned into disney minus the thousands of followers, but check out the fiveday chart. Wall street has pretty much applauded the efforts. The fiveday disney chart of the stock, it really has taken off in days, even in this most recent session, up 2 . The bigger picture, there is a ton of quality in here. Warsl, pixar, star franchises. It has gotten rave reviews. It has already been released on apple tv plus and it showed huge demand. Again, the glitch may have been minor. If it continues, and they have said we have a quote from disney, what they said is that the consumer demand for disney far exceeded their highest expectations. They were pleased at this and said that they are working hard to fix the issue if it continues. Outages going into tomorrow and the next day that could lead to questions about their preparation for the onslaught of demand. Haidi better than the opposite problem. Some analysts are referring to this as a streaming video wars because it undercuts big rivals like netflix and amazon. In terms of the outlook for longerterm success, what are we seeing . Su a lot of critics are saying it will be a long time before the property hits the because we have such expenditure is involved. If we look at how aggressively disney has promoted, they are undercutting a lot of their rivals. Their service is cheaper than many of the big rivals like netflix and amazon by a couple of dollars. It is more expensive than hulu and apple tv plus, the family focused service. Innew tv shows, 10 new films the first year, along with a huge archive they will add to, and it is bob iger, the ceos legacy. Many say he has got a lot of risk here. It is the most important product he has launched. Bybuilt his reputation purchases like pixar, lucasfilms, and then most of 21st century fox. Many say this is probably the most expensive with the highest risk. Bloomberg asked him if it would pay off. He did not seem worried about it. He said basically, it is too late to worry now. We mentioned that a week from now, the service will launch in australia, new zealand, player rico, puerto rico. The important thing is whether they can win over the subscribers to get the numbers on the level that you see with netflix and amazon. Haidi thank you so much for that. Su keenan at a quick check of the latest business flash headlines. Is selling 30 billion of bonds to finance the acquisition of what may the biggest net sale of 2019. The drugmaker is capitalizing on cheap borrowing costs with risk premiums ever treasuries at their lowest level in more than a year. The offering is the fourthlargest of all time. 63 billion. Leapd for the 737 max lastt leapt last month. Undercklog fell to just 4400. Boeing seeing a 93 orders for the max for the first 10 months of the year. The plane maker is offering deals on the dreamliner and other aircraft to offset the fallout from the max grounding. An employee for leaking staff names and personal information and placed two others on leave for allegedly violating company policy. Sharedker on leave has confidential documents while the other tracked the calendars of some staff, which made them feel unsafe. Some people say google is punishing people into sized and policy. Plenty more to come. This is bloomberg. Shery breaking news out of japan. Producer Price Inflation numbers for the month of october in japan rising 1. 1 . The year on year figure, contraction of 0. 4 . Bear in mind the caveat is that japane the tax hike in kicking in first of october. We have to exclude the sales tax affect and Bloomberg Economics thinking that boost should be around 1. 2 . Even though you are seeing 1. 1 rise in october ppi numbers, month on month, which is a smaller rise than was expected, and is much higher than the previous month when ppi was flat if you exclude the sales tax affects, then really not much change. Youre on your figures, a contraction of 0. 4 . That would be the fifth consecutive month in the red. ,e have weaker Commodity Prices weaker asian demand, all feeding into these ppi numbers and potentially consumer prices, and of course, that could hamper the reflation goal by the bank of japan. Haidi. The questiondi begs to be asked, is there anything good that can come out of negative rates . Addressed that very question on the upcoming episode francines with lacqua. Arepierre negative rates something which has the economy. Many people criticized the ecb, saying negative rates are bought because they negatively impact the top line, but at the same time, negative rates help the european economy. Banks wereon of going down. The banks have been having a decent performance. Orbe now if they are low negative for longer, it might have a slightly negative impact on banks. Francine does it help . Jeanpierre a marginal help to a certain extent. It is calculated. Multiples. Crease francine when you look at how you can deal with negative rates, you said you would pass it onto some of your wealthiest clients. Do you have pushback against that . Jean pierre we need to pass the impact of negative rates to the client. From 99. 9 of the clients, there is no impact. For clients which are more under the deposit guarantee level, you do not push them to change their location because that might be done first. For the clients with more than one million, those are the ones we are targeting. We decided to offer them an alternative product so money market funds, we target performance at zero plus. No commission, so for them, it is a shift. Of oneuidity in excess million, we discuss with them to see if we can charge them some kind of commission for excess liquidity. Francine are you worried they will go elsewhere . Jean pierre our clients like us. We want to find an agreement that is mutually beneficial. Francine how would you describe the relationship between european banks and the European Central bank for example . Jean pierre cat works very well. Everybody says it is the regulators. You can deal with them. We interact the most. It is a matter of changing to speak together. You actually can benefit from each other. The ecb has made a lot of progress on the supervision side. Years,look back in five they did something super good. Shery the ceo of unicredit speaking to francine lacqua. We are getting more lines from the Hong Kong Government saying it should parents that decide whether or not children can go to school on this wednesday. We have seen disruptions around hong kong, including the train operator not running or closing some of their stations. The Hong Kong Transport Department saying that the Train Service will lend at 10 00 p. M. On wednesday. Of course, we continue to watch whether those protests will continue this wednesday in hong kong. We will be watching hong kong and also the market ons in japan and south korea at the top of the hour. Plenty more to come on daybreak asia. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 les, and switch it up at anytime. All with millions of secure wifi hotspots. And the best lte everywhere else. Its a different kind of Wireless Network designed to save you money. Switch and save up to four hundred dollars a year on your wireless bill. And save even more when you bring your own phone and upgraded your network. Thats simple, easy, awesome. Click, call or visit a store today. Haidi a very good morning. I am haidi stroudwatts in sydney. Asias major markets have just opened for trade. Shery good evening. I am shery ahn. Welcome to daybreak asia. Haidi some breaking news on oil, we are getting this International EnergyAgency World Energy Outlook report. The long term report saying that Global Oil Demand will hit a plateau and around 2030. Quite a bit different to what we heard from the saudi aramco ipo perspective, looking at a peak of around 2035. The iea is predicting that oil demand will plateau and start to diminish earlier than that in around 2030. Also saying the report that Greenhouse Gas emissions are unlikely to peak before 2040 despite a pickup in the use of wind and solar power, not sufficient to curtail Greenhouse Gas. Some of the other more interesting predictions that we are seeing, that chinese demand for oil is likely to grind to a halt in 2030. They are using the current growth rate of one Million Barrels a day. That is expected to hold for the next five years. That then really drops significantly to 100,000 Barrels Per Day by the time we get to the 20 30s. This is largely attributed to them more efficient use of cars as well as electric vehicle loans as well. But that headline number, Global Oil Demand seemed to plateau at around 2030. Five years earlier than the expectation given in the saudi aramco perspective, which is keen to peak at around 2035, shery. Sharp we are seeing the reaction in wti. Lets take a look at how markets are trading because the Energy Sector, one of the big decliners on the nikkei, which is down. 3 , the Energy Sector falling about 1 at the moment. The topix down. 2 , but remember, the topix still above the 1700 level that we have not seen since october of last year. And also, the nikkei and the topix still on that overbought territory on the 14 day rsi. The japanese yen slightly stronger at the moment. It has been stronger against the u. S. Dollar the past three sessions, so take a look at the other markets around asia as well. The cost under pressure, down. 5 at the moment kospi under pressure, down. 5 at the moment. Bmc more riskoff sentiment across the board as we continue to hear more news on the u. S. China trade relationship with President Trump saying that tariffs will rise substantially if there is no phase one trade deal. The korean won is slightly weaker, down. 4 . The south korean won rose in the previous session. They are selling the greenback. Take a look at other markets. The asx 200 down. 2 . The kiwi stock, the only market at the moment which is gaining ground. 5 . This of course as we get the rbnz Rate Decision later today. Market expectations that there will be a 25 basis point cut on the cash rate. 2. 75 percent. Lets get the first word news with jessica summers. Thanks. President trump is ratcheting up the pressure on china by warning he will substantially raise tariffs if trade talks fail to produce a deal. Speaking at the Economic Club of new york, he said beijing is desperate to reach an accord, but that will only happen if it is good for the u. S. The president did say the talks are progressing well but said he would raise tariffs against any country that caused problems for the u. S. Pres. Trump it is going to 15 very soon. I tell this to larry. Et al. It to everybody. If we do not make a deal, we will substantially raise those tariffs. They will be raised very substantially. That will be true for other countries that mistreat us. We have been mistreated by so many countries. Jessica in that same speech, President Trump renewed his assault on the fed, saying chairman jay powell is hurting the u. S. By not the president said fed policy is putting america at a disadvantage, and again called for a change of strategy. The fed cut rates next month for the third time this year and signaled it is now on hold. Traders and bankers hoping a better than expected thirdquarter would boost their yearend pay are likely to be disappointed. This is across wall street are poised to drop in 2019 to a report by johnson associates. It says equity traders will fare the worst with a drop of up to 15 from a year earlier while fixed income traders may only face 5 cuts. And former new york mayor Michael Bloomberg has filed to run in the march 3 democratic primary in arkansas. It marks another step towards a potential president ial run next year. Bloomberg is the founder and majority owner of bloomberg lp, the Parent Company of bloomberg news. He says he has not yet made a formal decision on whether he will run for president. 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 jessica summers. This is bloomberg. Haidi ing today. They have withdrawn their dividend outlook. An unexpected blow to the top shareholder, rhino. The topad shareholder. How is this likely to play out for this relationship . Three seatsrenault on the board including its top leadership, so you can imagine this is going to play out as a very concrete battle on that board over the payment of this would end. Was theial news dividend was withdrawn and nissan came in and said we are going to give the board a chance to look at this and consider what to dividend should be so isiously, renault interested in having a dividend and having it as high as possible. As a carmaker, they are not doing fantastic either. They rely on it as a key component of their own earnings, so that is going to be a boardroom battle that will help define how these two carmakers Work Together going ahead, what kind of dividend does that shake out to be . Shery nissan falling more than 4 at the open, down 3. 4 , the biggest fall since august fifth of this year, so what can you tell us in terms of the business . It seems that nissan was doing better than others in the chinese market. Dave sure. This is a company that has brands that work well across the global markets, including in china. That has been a key market for them. As you say, they are not doing well, but maybe slightly better than some others. There is still a lot of pain to go around. Not only did their earnings miss their own estimate, not only will they reduce their estimate for their forecast for the year also missedt they analyst forecasts for that full year outlook. They really cut back on their expectations not just for earnings but for sales. The focus now has been on cost cuts. One of the things a carmaker said is there cost cuts were not implemented as quickly as needed, but again, if their sales are going to be down and they did cut their fullyear forecast, it is harder to make those cost cuts pay if sales are declining at the same time. That is perhaps my they see the dip in shares. Why they see the dip in shares. The companys debt situation, they have a big surge. A lot of debt is coming through next year perhaps as much as 12 billion in debt. Thats coming through in 2020, so there is a pretty close eye on their Credit Rating as well, rated a three right now, pretty good for a carmaker. Cutting the dividend could be helpful. It could give a break to bondholders actually even as shareholders are soft ring. Shery dave, what will shareholders be wanting to hear from the new leadership at this point . I think the real focus is on operations and how the operating. They need to show that they can make decisions about things like the dividend smoothly. I think that can happen fairly quickly and it can get that out of the way but they need to show that their operations are not being waylaid by all these Corporate Governance issues, and that they can move ahead with, for example, refreshing their models. One of their weaknesses has been in the u. S. Market with suvs and sharks. You know, they need to introduce some new models that can sell well in that key market for them, so that is one thing investors will be looking at is how fully they can do that. Haidi dave, thank you so much in tokyo. Nissan trading lower by over 4 , falling the most since august this year at this point. Still ahead, we will be speaking with the chief economist. They tell us about how integrated asias economy is and where the investment money is going. Amid we are in hong kong another morning of disruptions. This is bloomberg. Haidi this is daybreak asia. I am haidi stroudwatts in sydney. In newi am shery ahn york. Hong kongs morning commute is facing disruption for a Third Straight days after another night of clashes between protesters and police. Sophie kamaruddin is in hong kong. The parents should be the ones deciding whether or not their children can go to school. What is the latest . Sophie yes, schools have been closed across the city. Classesties canceling as we are seeing disruption to travel in hong kong for a Third Straight day. In central, where i am standing, it does seem like his news as usual with folks coming in and out of the mtr station mentions put elsewhere, they are stranded with some rail and bus services with who have to contend the travel instructions, including students, they have to face things today. This will not alleviate the impact to the economy. But economy will likely fall into deeper contraction in the Fourth Quarter. Industries like finance and terrorism continue to face severe headwinds in the city. We have seen retail sales continue to come under pressure. We expecting for clashes across University Campuses . That has been the ground zero for some of these altercations we have seen. Sawie on tuesday night, we pitched battles on the Chinese University of hong kongs campus between students and protesters and the police. Being thrown by protesters. This morning, they appear to be setting up roadblocks to prevent the police from returning to the protests after the night of clashes. The activity they are reached a deadly level with several injuries reported and while the violence intensifies, carrie lam has dug in her heels, vowing not to relent as beijing offered to punish crimes and restore order. That more emergency measures such as a perfume may be introduced, perhaps justifying such moves. May scare u. S. Lawmakers to action with senator mcconnell on tuesday vowing to work on a bill to support the prodemocracy movement here in hong kong. That has run into procedural hiccups in the senate so far. Haidi haidi Sophie Kamaruddin on the streets of hong kong, bracing for another day of disruption. Lets get more on the impact of the protests on the market. Mark cranfield joins us from singapore with momentum strategies looking more challenging. How are investors approaching the situation in hong kong and stocks in the city . Lot moreis becoming a difficult. Trading the hang seng index on a longterm basis. It usually has a pretty close correlation with the direction of the s p 500 index in the united states, but that has certainly been breaking down as the street protests have rumbled on, becoming a more frequent incident in hong kong. That relationship with the s p 500 has become weaker and weaker. People who trade hang seng index have to be much more aware of what is going on in the city in hong kong and in the news related to the tariff trade. When it comes in in the morning, they may see that wall street a good night for the s p 500 index. In the past, you would have thought the hang seng was going to open higher, but that is not necessarily the case. Sometimes, the protests start early in the day. That affects peoples view on the hang seng. So if you are a momentum trader, just looking for the ups and downs, movement in the market on a global basis, it is much harder to trade what happens in the hang seng, so you need to be looking other ways to make your decisions on the hang seng index. That is making it much more choppy, much more erratic on a daytoday basis. Yesterday, we saw during the day, the s p futures are moving in one direction, but the hang seng was going to the opposite direction, and that is something which is going to become relatively normal as long as these protests continue in hong kong. Shery what happens if the protests drag on . There seems to be no real resolution to what could be a breakthrough in these talks. What happens to the hong kong markets then . Invest think people who in asian equities will probably be moving their money to other places, so it is quite possible that hong kong stocks will underperform the general direction we see in asia, so even if there is a trade deal between the u. S. And china, and generally, the mood stays fairly positive for Global Equities running into the end of the year. It could be pretty hard for hong kong stocks to perform as well as the broad direction for Global Equities, so if we do get a fairly clear run between now and yearend for the moodtos, ht be able to participate fully in that direction. It may well lag behind and that is something which is going to be very hard to break as long as there is this local factor which is a very big one which is weighing on the performance of hong kong. You can see the economy, as you were talking earlier, is in recession already. It is hard to see how theres going to be much growth when tourists are going to stay away from hong kong. The fact is dragging down the hong kong economy will certainly weighed on investors trying to choose where to put their money in asia for the next few months so its going to be tough for hong kong to keep up with asia. Haidi our bloomberg mliv strategist mark cranfield. This will be a boost for hong kong in maintaining its position as the major Capital Markets hub in asia. Alibaba getting its approval sell its shares in hong kong. That is according to a report in the south China Morning post. The secondary listing would go some way to really send hong kong back to the top of the worlds ranking. 15 billion fundraising could be the largest this year, particularly if saudi aramco gets delayed to next year. It does look like alibaba following the back of another recordbreaking year of success for simple days moving ahead from plans for the share sale. Could raise up to 15 billion and seen as a big win for hong kong. Also perhaps as a way for alibaba to diversify somewhat from its u. S. Listing given these ongoing u. S. China trade tensions. Chari. Shery interesting shery. Shery interesting. It has a further comment on beijing. Selina wang joins us now. So what is the latest response from the mainland authorities . You are seeing hardening rhetoric with the latest report that chinese Officials Say they strongly support the Hong Kong Government to take more effective, stronger measures, to crack down on crime, enforce order. You have the top chinese official saying china is only going to support a loyal government leader. Even reviving calls for that National Security law. You have academics bringing up the point that increasing violence may play directly into beijings hands and provide a reason for xi jinping to further increase his grip and control on hong kong. Some academics noting this could be reason to bring in mainland police, potentially, including the National Security law. Other legislation to increase that control. Research noting that with this escalating violence, beijing may need to rethink its relatively restrained response up until this point. Shery selina wang, thank you so much, our china correspondent in beijing with the latest on mainland authorities response to the hong kong unrest. Breaking news out of google now. The dow jones reporting that the u. S. Department of health and Human Services has started a probe into global initiatives that have been codenamed project nightingale. They are citing the authorities office, roger severino, saying the probe is in gathering more information on the project, which involves mass collection of personal Health Information of millions of patients. Hhs is seeking to determine if areuntability protections fully implemented. This according to a dow jones report. Of course, we have seen a massive rally in alphabet, up 25 this year. Coming up next, tencent shares hitting a ninemonth low in october. Its earnings later wednesday may offer clues as to where the chinese heavyweight goes. We will tell you what to watch for, next. This is bloomberg. Haidi this is daybreak asia. I am haidi stroudwatts in sydney. Shery i am shery ahn in new york. Tencent is trying to salvage its years. Shares had a ninemonth low. Peter elstrom joins us. For some perspective, this gtv chart on the bloomberg showing the market cap of tencent as compared to alibaba. The market cap, falling 90 billion behind alibaba as we get local media reports that alibaba is ready for their Hong Kong Exchange listing. How is tencent doing here . We talked many years, about alibaba and tencent in the same breath. They would kind of trade back and forth the title of which was the most valuable company in china. Tencent will surge its use increase in alibaba would increase with its ecommerce business. I course. But what we have seen recently is this opening up in this gap between tencent and alibaba and it really shows the difficulties of content compared to ecommerce. Tencent of course is the biggest Games Company in china and in the world. They have also been investing another because of content like the mba. That has been a bit more of a Challenging Market over the past years or so. The chinese regulators took a pretty hard line stance against some of the games that tencent was using. Recently, you had this controversy with the nba, where the general manager for the Houston Rockets tweeted about the hong kong protests and that created all kinds of real tensions. As part of that, tencent a year ago signed this exclusive contract to broadcast nba games online. They still are broadcasting online at this point but the state owned Television Service suspended their own games. Tencent is facing this tension about whether they are going to be able to continue to broadcast games and if so under what kind of circumstances. It reflects some of the Broader Investor concerns with tencent right now. Haidi in terms of the controversy, how much has that damaged the company . Has thatll, tencent heavily on the nba. The Houston Rockets are one of the most popular teams, for many reasons, including the chinese star yao ming. This money into this exclusive contract for five years with the nba, this will faang flu up. That is away not just to make money from advertising and subscription revenue, but they want to be the go to service for all sorts of content, so that kind of opens doors to other things they can offer. Games and online video. It is a setback for them. It is not clear exactly how it is going to play out at this point. Tople are going to want watch it. The numbers are staggering for tencents audience. They said they had 500 Million People who watched games in the last season. The members are big. They have been grown yearoveryear substantially and that is an audience they dont want to lose. Haidi Peter Elstrom there. Breaking news. Npr operator says Train Service disruption is taking place on the west rail line in addition to a number of other disruptions and closures in public transport, both buses and trains. As thetion is closed city braces for another day of potential unrest and clashes between police and prodemocracy protesters. It is a lovely day in hong kong. This is bloomberg. Whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. Switch now and see how you could save up to 400 a year. And get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. Is daybreak asia. Hong kong police warn the city is on the verge of what they call total breakdown as protests rage on, with disruptions to the transport network wednesday. Demonstrators set fire at several locations to stand clashes at a University Campus continued into the night. The unrest is harming the economy, the hang seng index falling below the key 27,000 level this week. Senate Majority Leader Mitch Mcconnell is vowing to press ahead with legislation supporting prodemocracy protesters in hong kong. This, as some senators say they are growing frustrated with the chambers failure to act. Based anguilla dress the body with what he calls beijings unquenchable thirst for control harming democracy. Bush fires continue to burn across New South Wales and queens land, but outbreaks in sydney remain under control. Firefighters contained a blaze 20 kilometers from the center of the city. Three people have been killed in the fires. Parts of eastern australia have been left parched and vulnerable by a twoyear drought. And new delhi is choking once again. The air quality reading rose above 400 tuesday. That is about eight times the interlashleyexcepted safe level. Wins glowing from the north winds blowing from the northwest brought smoke from fires, pushing the government to find a solution. Health data last year said india had 10 of the mostpolluted cities in the world. Global news, 24 hours a day on air, on tictoc and twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im jessica summers. This is bloomberg. Globalia is predicting oil demand will plateau in 2030. The agency says we will see a mark slowdown after the middle of the next decade to just 100,000 barrels a day in the 20 30s. Stephen, the report cites a pickup when it comes to the use theind and solar, and increasing dominance of electric vehicles. But does the timeline add up in terms of some other predictions we have had for oil demand globally . The idea and the concept of peak or plateauing oil has been around for the past for years, especially with the emergence of electric vehicles and more efficient oilburning cars. You are getting to this point where people are saying, where are we going to get with oil demand, will we see it fall or plateau in the 20 30s or the 20 40s . Aea report goes along with what the industry has been saying. The interesting thing, they expected 200,000 barrels of growth per day in the 20 30s in a report last year. Now, they have cut that in half. And that shows the situation has shifted over the past year, and there who, they had to change that as such because of the emergence of electric vehicles, but also because of a massive slowdown in Chinese Oil Demand growth into the 20 30s. Also diverting fr peak oil demand, which is 2035. Where does that leave aramcos valuation, which already we have seen the delay of this ipo now . You know, within the prospectus they put out they mentioned the potential of peak oil demand. At the same time, we have had a lot of investors come out and say, maybe aramco is not worth for 2 trillion valuation the entire company that the Saudi Crown Prince had been saying. And you have seen this inside the country. This is no surprise for them. How this is going to effect is onealuation, iaea forecast among a number of forecasts and every investor has their own view on oil. But from a macro level, the view on oil is bearish in the 20 30s. When it will start is up for discussion, but it will have to be addressed as the ipo proceeds in saudi arabia. Was there any optimistic element of the report for the producers . Stephen the one interesting said was, going into 2030 and 2040, there will be a replacement of upstream production, there will have to be, because of oil reserves falling. Because of this replacement and because of producing from new wells, you will see the price of crude go from around 60 today to 90 and 2030 and 103 in 2014. That right will be something good for the producers, as oil demands fall. As oil demand plateaus, they will sell oil at a better price and boost their profits into the future, so no worries about that. Shery stephen, thank you, our asia energy reported. We have the Asian Development bank out with a new report and unsurprisingly, it says trade tensions will further slow Global Commerce in the months ahead. One thing that is maybe unexpected is that trade in asia remains robust, positive byproduct. We have the chief economist from the Asia Development bank, binnie wai yan wong, joining us from tokyo. Thank you for joining us. How much do we expect interregional train to actually interregional trade to actually offset headwinds coming from the u. S. China trade war . As you mentioned, over all our global trade, it is now tempered somewhat, and all over asia, imports and exports are towards the moderating projection. However, we see within asia trade in both imports and exports increasing. And trade with asia and other Asian Countries. So this is good news. Is. China trade tension making Economic Growth slowing down, and that has been but becauseoncern, asiais response, within there is some kind of adjustment over negative consequences. Exports to the u. S. Is counteracting over negative consequences of the ongoing trade tensions. And what is interesting is that asia remains a very attractive place for foreign investment. This chart, actually showing we have a decline in world total inboard fdi into asia fti into asia, but you see yellow bars where fti into asia is stabilizing on has grown marginally. Why are we seeing this trend . Mentioned, the inflow globally is a negative somehow asia has benefited from global fti, so if incoming fti is robust and increasing, and at the same time outflow from Asian Countries to other Asian Countries is also increasing. I think this is one of the consequences of ongoing u. S. China trade tensions, because chinese exports slow companiesmany chinese and Global Companies started shifting production places from china to other asian economies, notably vietnam and other Southeast Asia economies. And this is the movement of fti within asia, and also attracting further investment flowing into asia. So actually, i think this is partly driven by ongoing global trade trends. I wonder what sort of changes you are seeing in the data from, i think the two major elements of what is going on around the region, one of which is the disruptive effect of technology and the other is the drag effect of aging populations. The socalled industrial revolution, ai and sophisticated robots, that has an aspect of replacing the existing labor force. However, in asia, because of the continued growth and continued consumption market, there is a sense emerging, much larger labor opportunities. So on the one hand, there are negative consequences of technology, but on the other hand there is a thought toward absorbing more labor. And in our study, the overall impact of the introduction of new technology is positive. And this is very important, especially those highincome or middleincome countries in asia that are already encountering an because thetion, labor workforce is getting older and naturally, productivity will decline. However, new technology and production and innovation and technology can sustain this negative impact of aging. And according to this study, we really see those countries who adopted technology softening the negative consequences of the aging labor force. At the same time, technology can leave People Living longer and healthier, and it can extend their labormarket participation. Also, technology can play a role in investing Human Capital and upgrading the labor force equality, so overall i think technology will lay a very Important Role in the rapidlychanging demography in the asiapacific region. Shery thank you so much for joining us today, the adb chief economist. We have breaking news. End itsing it will retail Pilot Project with amazon. They announced that project in june. That was supposed to be nike selling its product on amazon. Com, a limited product assortment on its website, but now coming out and saying they will lend that retail Pilot Project with amazon, although they will continue to partner with Amazon Web Services. At movers in japan. Saco gaining ground at the moment seiki gaining ground gaining ground, rising 6 after they adjusted their forecast. 2. 25 afters down they cut their full year profit forecast, with through their dividend outlook and said it was undecided about whether to make a payout at all. We are also watching shares of yahoo the dairy beverage producer. We saw shares yesterday rise to a percent, the biggest intraday gain since may of last year and now they are giving up back almost all those gains, downside 6 , the company cutting its operating forecast for the year, in line with estimates. And there is another mover to the opposite direction, fujifilm, beating analyst estimates and gains of almost 5. 5 there. Is daybreak asia. Im shery ahn in new york. Haidi im haidi stroudwatts in sydney. Joining us now from singapore is and chief cofounder science officer, necklace. Where do you see the greatest application in this part of the world for your technology . Good morning. What we see in asia right now is a great willingness and great interest to embrace ai, and really make it applicable. A newt ai is still organization. We were founded just over three years ago, with the belief Artificial Intelligence should workpeople and machines smarter together. So we have been working tangibly to help people get better insights from data, to help them make better decisions that deliver value focus on tasks that are more meaningful. We have been working with our customers across the world and especially here in singapore, where we work with a Financial Services company to help them make better predictions, and with large, engineering organizations to equip their engineers and their scientists with deeper ai capabilities that help them really leverage ai to deliver value. There is a esgi there is a strong aspect to your projects. Tell me what values you are looking for when you embark on this work. yes, one of our founding principles is that ai should work for the people, and ultimately for society. Embraceis having us principles around trustworthy ai deployments, so we believe that ai should be transparent, it should be fair, it should be explainable, and that organizations should set up the proper governance structures to oversee the way they think about ai models, the way things can go wrong, the way that we can make sure models keep doing what they were trained to do, and give them the tools to oversee the models, make sure that they are fair, that they are not unfairly discriminating unfairlyinst discriminating against some populations, for example, and that they can deliver value in a way that is scalable, but also socially acceptable in a way people can trust the model. So for us, we have been investing heavily in ai for good. For example, we have a team that tangible, natural language processing advancements to analyze the feed of twitter journalists and politicians, and really quantifying the abuse that female journalists on twitter, for example, are subjected to. We did this work in collaboration with Amnesty International last year. Shery which countries in asia are adopting ai the fastest . Great, greatee traction right here in singapore. This is one of the reasons why we chose to establish our headquarters here. We see also a lot of pull from south korea. Application areas are very diverse. For instance, we work with a carparts manufacturer in japan, to improve their Quality Control operations and gain explain ability into existing ai models that their teams use a lot. Here in singapore, we work on , forrch projects with gic example, our marquee customer in singapore, on a number of research initiatives. Shery we are seeing this bifurcation of tech, as we see this chinau. S. Trade and this dominance in tech being a key issue. Are you seeing any of that impact your business, or the outlook for Artificial Intelligence and r d Going Forward . Us, the outlook remains about the ability and willingness to and brace ai and leverage its capability. So each organization will have its own pace, its own maturity of adoption towards ai. We work very closely with them to help them towards the next steps, but in terms of the geopolitics, it is quite far removed from what we see in markets. We really see companies having an eagerness and a willingness they cane ai that trust, that they can scale with the right partners. Nicolas chapados, element chief executive officer. We are live in wellington next. This is bloomberg. Shery this is daybreak asia. Im shery ahn in new york. Haidi im haidi stroudwatts in sydney. New zealand will deliver numbers in just a few minutes. Certainly expectations have built after the shocker of Inflation Expectations reports yesterday. That is right, haiti. It looks like it will be a close call for the rbnz, delivering a further rate cut and taking the policy rate below 1 for the first time. Solidified what the Business Outlook told us earlier and the keys outlook was also pretty soft Employment Data last week, all lining up for making it likely that the rbnz will fall over the line. Haiti the kiwi is in a comfortable spot at the moment. Comfortableiwi is for the moment. Since the last meeting they have the 25 basis point cut last time around. However, one thing worth keeping in mind is that, if there is a rates,me until the next the next Monetary Policy meeting is in february so i guess this will be the last chance for them to do anything, to cap any up cited any unwanted upside momentum on the new zealand dollar. Shery how will the yvonne the rbnz affect others . Two Central Banks still have policy ammunition and they have been the two, if you look at rba governor philip lowes comments in jackson hole, if you have your just rates above that zero or below and you need to use unconventional Monetary Policy tools, you want to get in front of that and get in early. I guess the nearest analogy is the rba and what they might do. Here are some signs from that, when philip lowe, the rba governor, speaks very soon unconventional Monetary Policy. Haidi in a few minutes time we will be getting that announcement from the rbnz, thank you, James Mcintyre in sydney. We are about to hear from rbnz in a few minutes and we will be hearing from the man himself on friday in an exclusive conversation at 6 30 friday morning if you are watching in hong kong. Lets check is this flash headlines. Nike is breaking up with amazon, ending a Pilot Project where it sold its products on the website. The company says the decision is part of its focus to get more direct relations with consumers, and that it will invest in strong partnerships with other retailers and platforms. Nike adds it will continue to use Amazon Web Services to power its absent services. Shery media and hong kong say alibaba has one approval for a share sale in the city that could raise more than 10 billion u. S. , the south China Morning post says Hong Kong Exchanges and clearing has given a green light to the move, citing unidentified sources. Alibaba is proceeding with what could be this years largest stock offering, despite violent prodemocracy protests gripping hong kong. Haidi nist on lands a blow on partner renault, saying it is undecided on whether to make a payout at all. Nist on nice nissan is piling pressure on renault stands in paris, renaud stands to lose the most since it owns 43 of nissan. Motorscoming up, excon president joins Bloomberg China open to discuss when his company will deliver its second ev model. We look ahead to the start of trading in shanghai and hong kong. Haidi rbnz says its decision is almost upon us. Do standby. China markets is next. This is bloomberg. Looking to Bloomberg Markets china open. I tom mackenzie. Caroline i am yvonne man. We areounting down to the opening of the markets. Here are your top stories. Hong kong faces another day of commutdisruption. Authorities believe the city is on the break on the brink of total breakdown. Alibaba reducing confidence in hong kong. Trump piles more pressure on china warning of substantial new tariffs if trade talks fail