Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

Tenyear. It is unchanged, 1. 83 . A point of reference more than anything else. Of positivity with regards to whats happening for sterling. Withabour party coming out drives of its manifesto, some are saying making it relatively unelectable. That would make perhaps a move on brexit, or Boris Johnsons deal on brexit. Stablepretty much against the dollar. That as we get growth details a little bit later. Lets get from whats happening here in new york. We have first word news with su keenan. ,eporter we start in the u. K. Prime minister Boris Johnson aims to win the support of u. K. Business leader today, offering. Ax cuts as an olive branch the december 12 the vote could determine how or even if the u. K. Ultimately leaves the european union. Saudi arabia has agreed to lower its valuation of the energy thet aramco to pare back size of the initial ipo to make sure of its successful about half of what has been considered for the ipo. It is seeking a valuation between 1. 6 trillion dollars and 1. 7 trillion. Morgan stanley says there are reasons to believe the World Economy will recover in the First Quarter of next year. Economists say a combination of the easing trade tensions and looser Monetary Policy will lift Global Growth, driven by emerging markets. However, they add the risks remain including the potential for more tariffs and late cycle challenges in the u. S. Lanka, closely fought president ial elections have ended in victory for china friendly former defense official. Voten more than 52 of the which shows the country was mainly divided along ethnic lines. Thecurity win by capturing sinhalese buddha southern promises, while the rival took tamil dominated north of the island. 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. Kong police moved to clear protesters at a university in calhoun after a weekend standoff and more violent clashes. Lets discuss with our chief north asia correspondent david engel. Ceo Richard Harris. Lets start with you. What is debated latest . Reporter just across the harbor from here at the tip of the peninsula and the entrance to the cross harbor tunnel, which has been closed for many days because of the standoff. This morning, we had the beginnings of what was a Police Dispersal operation where they are trying to move in on the university, where there are 100, maybe 1000. The number is debatable with the , and trenched in the University Security campus, probably another way to describe it by the police. They tried they dispersal operation. The were repelled by accounts and also fired tear gas. This is obviously just a standoff that has no solution. Rishaad we talk about all the time, it is a political Problem Solutions ontical the table. Of course, we have to maintain balance by talking to both sides. Reporter absolutely we do. You have to look at the actions of the government and the protesters. The most recent comments coming from the chief secretary. He was saying more decisive measures will be at their disposal. Thet ruled out the invoking of more emergency provisions ordinance, which one, we dont necessarily know. We dont know early this morning on the Facebook Live post that police are saying if there dispersal operations were met with increased violence, they would not rule out the use of life any mission live ammunition. We know there were three rounds fired this weekend. Keeps was hit, but it escalating with no causes for deescalation, if you will. Yvonne we are taking a look at the hang seng, up more than 300 points. Im a little perplexed. Do you think this is the end of the route we saw last week . Reporter the market is capricious, isnt it . Weve seen at a normas amount of underperformance by hong kong pretty well against any trainees index and certainly against the u. S. Index, which is unusual. The end of october, we saw an unusual thing. This is before weve seen the latest sharp rise in violence. Its almost as if the market is looking at what we are seeing as the new normal. Its been like a typhoon. The buses stop and people have to walk here and there. Ok, we can handle this, we know where it is going. We dont know where its going in the future, but at the moment, we dont think it will get any worse. Rishaad steve, youve been talking to arius members as well. Various members as well. I spoke to emily lau, it former chair of the hong kong ymer credit already. She talked about that they are and recession, gdp will contract 1. 3 . Fourththey came out with quarter calculations. Looking at the jobless numbers, we will get the jobless for october. Sorry, i am losing my voice about this. Talking too much about this. Jobless rate pretty low given the situation since july. Its about to go up to about 3 . Tourism levels up. Retail and accommodation, Food Services, jobless rate could hit 10 by mid2020. The headline number could hit 4 . Doesnt sound like a lot, but for a service driven economy like hong kong, this is a lot. Lets get to the emily lau sound bright soundbite. Dutch terrible state. The hotels are empty, the restaurants are empty. We are in a recession. Let me bring you in on this. When do these numbers that we talked about, the jobless and asking people to take unpaid leave and the shops being cold closed, and the shops being without anyone, where does this play into the stock market and economy . I think a lot of it is already in the price. Clearly it will take a lot more progress. But what came in is if the chinese send in military forces. Indiscriminate shootings would be extremely serious. Thats what we are expecting early on. The market is currently in a hiatus where it says the chinese are not going to intervene. This may be a dynamic equilibrium at the moment and things may get worse. Certainly, economically things will get worse. How important are the gdp figures . Probably unemployment, it will bring in a whole series of issues. One of the key elements as we know the government has huge reason reserves for a city. It wouldnt be too much for them to even spend half 500 billion u. S. Reporter what was that number you gave me . My overall thing is 79. 15 trillion. Some to support the cover and see and some to support other things. You have to wonder if this isnt a rainy day, you wonder what is. Yvonne some has called a peanuts, what the government is offering for a fiscal measure. They are offering is less than one years surplus for most years. So we are talking peanuts. Rishaad tell me, how is beijing looking . We have seen pla troops on the streets. Not invited by the hong kong government, but hoping to clear blocked roads, etc. Reporter of their own volition, too. Rishaad yes. Just days after xi jinping had sent a missive of what should happen and hong kong condemning the violence. Then lets not forget about what the senate is doing with the bill that could become an act this week. , andthe report to congress the papers coming out as well. They are facing it. But what did they do . What do the chinese do . I think it has been to leave it alone. One country systems has been extremely successful for hong kong. The basic law on the side has been a little fuzzy, but the chinese are generally stuck with it. There feeling has been, this is a hong kong problem. Hong kong has to sorted out. The problem is the endgame is tricky. We cant wait for 24 7. Hong kong needs a permanent solution to what is going to happen in the future. Otherwise, these things will continue. We cant wait until 2047. I think the chinese will have to think hard about how they accelerate some kind of permanent solution for hong kong within china. Yvonne you mention hong kong stocks are diverted for from the rest of asia. The correlations of the s p are broken down. Do you see that continuing for the rest of the year and into 2020 . My feeling is a lot of the bad news is in the market. I think those correlations will click back, certainly for the moment. We have to think, what will be worse news we are expecting in june, july, august . The worst could be pretty bad. A closure of hong kong as a Financial Sector for a period of time. If that happens, all bets are off and the market will collapse. I think they have to stay in some kind of dynamic equilibrium in this new normal. Yvonne rishaad rishaad of course, stick with us. That is port shelters Richard Harris and bloombergs Stephen Engle. Kong legco member joining us next. Rishaad wait and watch as investors eat more clarity on trade talks. That is next. This is bloomberg. Yvonne heres a look at whats in store for the week ahead. We are expecting thailand thirdquarter gdp numbers later this hour. Hong kong unemployment reading for october, expecting that to go up from 2. 9 to possibly 3 as this ongoing political unrest continues. Electione of the u. K. Campaign. Rishaad wednesday, minutes of the october fed meeting, we will see an idea of whats gone on going on globally. Four consecutive rate cuts this year. Headline inflation for october, that is due friday. Yvonne dont forget the ecb meeting with Christine Lagarde giving out her first Monetary Policy speech friday as well. In the last couple minutes, authorities are warning of more probably it ash challenges ahead. In the last hour, we saw the pboc lowering the calm to open markets. We are talking about the sevenday reverse repo rate. The latest policy report, the pboc saying to take any measures to support the economy as investment growth slows and factory output is sluggish. Chinese data coming out rishaad chinese data coming out, working toward an interim deal. The Trump Administration signaling that they are in the final stage of talks. Presumably, the pboc is acting because the trade war is hitting in a manner where the lit decisions are being delayed more than anything, driving the Global Economy lower. If we are taking so long to get to this phase one trade deal, it doesnt exactly forgo well for phases one and two and three considering this is supposed to be the lowest of the low hanging fruit. There is not a lot of confidence. I think the chinese are relying on the fact that they think President Trump needs a deal and wants to take a deal through 2020. On the other hand, maybe they are underestimating the fact that trump at the end of the day probably does it make a deal, that he will turn around and declare victory. He will pivot and say i tried and the chinese didnt do it, lets put America First again. I think the two sides are really testing the water. They dont seem to be coming closer together. We thought phase i would happen, but at the moment it is two steps forward, one step back. Yvonne can you just ignore the trade noise and focus on the monetary . Five basis points, does it do enough to lift stocks in china . And the u. S. , the fed has said Interest Rates, we are happy. In china, they are still obviously with easing measures, talking about qe in europe. The picture doesnt actually look that good for the economys overall. In terms of china, it is just not for trade tariffs. They are tariffs, it is not a ban on trade. It just makes things more expensive. Its a global slowdown. We have seen the consumer hold cross quite strong in the u. S. I think with these markets going up at the moment, it looks a little bit like a last hurrah. Rishaad thats because we are pricing and perhaps some of the growth we are getting next year already, and should we see Earnings Growth in the u. S. In nosedive . With a of course , we have see of course, we have been saying that it would nosedive for three or four years. Companies can continue to produce reasonable earnings. But you can only go on doing that for a certain period of time. Maybe we will see more and unemployment for companies to keep earnings up. It does seem to be a lot of manipulation for the moment. Yvonne youre saying theres a risk markets are overshooting relative to the macro data as well. Where are you seeing the most signs of overshooting at the moment . We are in a strange situation. Normally, its the end of a cycle and you tend to get quite a big rally. You tend to get a bubble. I wonder if this isnt going to be more of a pop, seeing markets moved too far ahead to where fundamentals should be. When that will happen, we have all been predicting since 2014, so who knows . We have had such a good year this year. China and asia markets up 34 . Even europe is up 16 to 17 . These are big numbers at any stage in the cycle. You have to wonder whats left for next year. Rishaad thats it, isnt it . Because of that, you wrote in your research that you are a buyer until today. When was that today . [laughter] i dont know, when does it go out . About a week ago. But i think my a general view is im holding on, im letting them sit because why let the value go . In the summer, i did take money out of equities and put some into u. S. Tenure and u. K. Not the best idea at the moment, but if you look at how much value there is in negative Interest Rates, which is something we dont really understand, why shouldnt u. S. Interest rates went trend towards zero . We could see a bubble in the bond market. Pausingbut the feds are. Does that put a floor to where yields go . They signaled they are pausing. Yes. I think in a sense, they had to do that. If you continue to cut, what is the market going to do . Came outteresting he with this statement to say we are pausing. Some might say they cut a little early. S think it was done for market rather than anything fundamental. Rishaad thank you Richard Harris, managing investor and ceo. Coming up, the ongoing unrest and the Upcoming Council elections. Yvonne another big programming diary. R your a big week for us in bloomberg. Live in beijing as the bloombergs new Economy Forum will host a great lineup of panels and guests including the prudential ceo mike wells. This is bloomberg. Rishaad a quick look at the business flash headlines. With a popular messaging service line, designed to expand the online influence and create a viable player in artificial intelligence. Private,will take line estimated 48 a share. The former yahoo japan now called zedd holdings will merge with that company in october of next year. Yvonne boeing admits it will have to work hard to regain trust as the grounded 737 max 8 just to return to the site sky. Saysommercial airplane ceo they are dedicated to safety and integrity and they know they have to restore customer confidence. That max has been grounded since march after two failed creches that killed 346 people. Rishaad airbus said to be impulse with General Electric to challenge sole supplier rollsroyce in the power unit, offering potentially lower emissions meant upgrading competition to the 787 dreamliner. We are told it will be based on the design powering the bulling triple seven. Yvonne we were pretty slow going here. Volumes are quite low, but we are seeing decent upsides for the csi 300. Sevendayws was the reverse repo cut of five basis points, the first time they had to do that since 2015. Shanghai composite pretty much flat. On the political unrest hang seng, up more than 1 . We are not even close really, regaining lasses from last week. Losses from last week. Watching the philippine markets as well, down close to 1 . Heading close to the 8000 threshold. Some say its hard to crack that. 13 times they tried to and have failed. Rishaad i look at the japanese market on the way up. This is what we have. Sony moving up, the owner of sony ton touch with trade a music subscription courte, sony off of that case reviewing competitive which they say in french is one of its patents. Im su keenan with first word headlines. We start with singapores latest Economic Data. Its exports slid further last month, down more than 12 year on year. It is their worst performance since june. Overall shipments were hurt by petrochemicals and pharmaceuticals, down 19 and 36 respectively. Criticalthe Electronics Industry posted a doubledigit decline, but the sector showed its least bad result since april. The Federal Reserve in the u. S. Saysnged row is prolonged low interest rate. Yearly reportce on potential threats says the rate squeeze could erode lending standards. Last week, fed chairman jay powell said low Interest Rates might now be a permanent part of the u. S. Economic landscape. To australia now, where brushfires are raging across much of the eastern part of the country and are said to worsen as dry, windy weather moves in. Fire fighters already struggling with more than 100 fires in New South Wales and queensland. Local residents have been advised to move out. Four people are known to have been killed and more than 300 homes destroyed. More than 2. 5 million acres of farmland burned. To work banks are together on temporary emergency measures with the country effectively paralyzed by weeks of protest and failure to agree to a new government. Lenders have agreed to lift a restriction on new money coming from abroad and set a withdrawal limit of 1000 a week for a accounts denominated in Foreign Company foreign currency. Banks are also using asking clients to use credit cards. 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. Getting gdpt numbers for thailand. Growth increasing by less than anticipating anticipated. 2. 4 percent. What is it down to . Know. t really that miss is also showing 2. 4 growth is slightly more than the 2. 3 we had last time as well for the second quarter. Thirdquarter numbers coming through. By 7. 6 percented this year, is it down to that or what is going on with the trade war . Could be a combination of both. Yvonne a little weakness in the tide bond but not a whole lot. Lets switch gears and talk about the hong kong story. Hong kong police moved protesters at a university after a weekend standoff. The veteran opposition politician emily lau earlier tv, saying bloomberg some local residents are getting tired of the mass disruptions, but they still support the movement rod or goal movements broader goal. She urged the government of hong kong. To respond to the peoples demands. The hong kong government, which of course is under complete order of xi jinping, they have to respond to the peoples demands. If you look at turmoil elsewhere , in lebanon, libya, within days or weeks, they responded. They have to. We are not asking for a revolution or independence. We just want an independent commission of inquiries. Yvonne lets bring in our next guest, a member of the biggest growth asian proparty in hong kong, vice chairman holden chow joining us in the studio. Thank you so much for joining us. Any response to what emily lau said . Im afraid that in light of the riots happening, the escalating violence happening, it is not that easy for any response for the government to answer everyone on the street. Even sixfive or demands, they even say to dissolve the police. Its not easy to satisfy everyone. At the same time, i think we need to make it very clear, people oppose the violence. We have been asking everyone in society to cut ties with the violence. At least you know that these days they occupy the university and petrol bombs are being thrown everywhere. They even throw them towards a school bus with kids. They are doing something harming the lives of others. This is something about concerning public safety. You cant just say, because we want a response from the government, now we are escalating violence, and at this point they are harming the lives of everyone. I think this is totally wrong. We have to make that very clear. The message to society, we urge the opposition to cut ties with violence. They also refused to do that. They turn a blind eye to what. Appened last week you read all the news, the court was burned last week. They turned a blind eye to this. They still make excuses for the violence happening on the street. Nonsense. Rishaad but isnt the government turning a blind eye to the protesters demands . They want a simple inquiry, as simple as that. We have been talking about this rishaad what about the dialogue . There was one town hall meeting and there has not been another one. We say that the dialogue should carry on. But right now, you see the escalating violence everywhere. I think its difficult for the government to host dialogue. I agree with you on one point. Dialogue should continue, but at least right now, seeing what happened last week, you should put an end to the escalating violence. If everyone in society came out with a voice of concern and told the people or the protesters to stop and calm down, stop the violence, then we cans can proceed to more dialogue, and also in response to your question about the police, we have been suggesting that the government, instead of doing the we candent inquiry, follow the example of the united kingdom. Send out a commission to carry out a study to look at the reasons of the social unrest. Something covering everything. It is not really targeting just the police. I think this is something that we want to make very clear to everyone. Yvonne what do you make of the pla . We saw officers cleaning up. Is this a sign of the beginning of any form of military intervention . Is this all Just Community service . Garrisonk the pla, the came out to give us a hand in clearing the road. You can tell from the public that people welcomed them coming out to give us a hand and clearing the road. Im surprised to see the opposition can, right after they came out, accusing the pla garrison of being against the law. I think that is nonsense. Roads are being blocked. , they are just doing something on a voluntary basis. Yvonne you dont think it is beijing sending a message . I think the message is very clear that the pla garrison is just giving us a hand. You know before, there was an example. Last year, there was a very serious typhoon. Pla garrisonhe also came out to help clear everywhere. Verynk it is on a voluntary basis. Instead of accusing the pla garrison of coming out, why dont they just Say Something about the violence and tell stop . To instead, the opposition turns a blind eye and accuses the pla garrison. Nonsense. Rishaad do you think that the administration, the government in hong kong, is in touch with the people they supposedly are meant to represent . Shouldink the government engage with people. Rishaad im not talking about that, im saying are they in touch . Sorry, i think they are. They should be in touch with everyone rishaad of course they should, but im asking you are they . In that case, i dont know, because i dont know what they are asking about you are asking about rishaad the feeling on the streets. Writes. They have a duty to do that. But you did raise a very good question. Chamber, in the asked a question to the chief secretary, how are they going to in light of the violence . Give us like they dont a response or they dont let us know what they are going to do. It seems that we have no clue on what they are going to do. You did ask a very good question, because people dont know what people have a perception they are not in touch with the people. Rishaad exactly. I will give you another question here as well. Lastly, we saw Hong Kongs Justice secretary going to london. Sadly, she was attacked by some demonstrators there in london itself. This woman was in london disputeg hong kong as a resolution. What hope does she have of actually being able to sell it . Top of that, what does what is the justice sec. Doing out of hong kong at a time like this . She apparently has a lot of im not the one to control rishaad absolutely, but are they in touch . A dispute resolution for hong kong . I think since that happened, a lot of people are surprised. Of course they denounce, including myself, the people who attacked her. Rishaad naturally, and everyone should do. But at the same time, we voiced concern. The government officials, we want them to of course Pay Attention to what has been happening here and give us more responses. We also urge the government to take appropriate measures to deal with the incidents here. Rishaad im just playing devil devils advocate, not attacking you. Yvonne i have a question about the election next week. What happens if prodemocracy lawmakers gain more seats . With that force the government to change policy . We are fighting a sort of uphill battle, i must admit that. We are facing a difficult situation right now. We dont know what the results will be. All we can do is our best with this coming election sunday. Time, ae, this is a chance, an opportunity for. Eople to present their bill over the past few weeks, i have also been in touch with people in hong kong. A lot of people say they dont want the violence to continue. I think people would make the thistment and how to vote coming sunday. One thing for sure i should say is the election should carry on on the 24th of november, not being postponed, because people expect the election to be carried out. Also urge the government to make sure that on election day, people could go out to cast their ballots in a safe way. Make sure they are safe, otherwise it is unfair. Throwinge rioters petrol bombs. If they are threatening safety, how can they go out to vote . Rishaad but the point is, they can vote for whoever. They can vote for you again, but you can raise a question in legco as you did and not get an answer. Do have to ask yourself, they ignore their constituency, which is all the people representing your constituencies as well. I think you are all familiar with democratic rental pulse principles. The election process is a process for people to present its the way the constitution allows people to defend their will. I think the election should still carry on. Rishaad but they thats what happened last week, there was no way of getting them to do anything. They might not answer our question on that day, but we will keep pressing the government to do something, so lets see how it goes. I just want to take my point clear that elections are still important and i hope elections will continue on the 24th of november this sunday and make sure the government has made sure the election is carried out on a safe basis, make sure people are not afraid to cast a ballot. Yvonne holden chow, Hong Kong Legco member joining us. Lets take a look at what is ahead. Ongoing basis trying to reach out to multiple voices in this debate. Rishaad both sides. Yvonne yes. We are talking other forces as well. Totbank used looking merge line and former yahoo japan. We will have updates. This is bloomberg. Rishaad softbank planning to combine with yahoo japan, hopefully hoping to create a presence. Ne i were global editor has this today. Why do these companies actually need each other . Is it one that is born out of frustration . These effective hasbeens trying to resurrect themselves . Reporter they certainly have. They have seen user growth level fast pace. Eally you may recall when line came onto the scene, they were the big Success Story eating into facebooks domination and actually becoming the dominant social media platform here in japan and several other countries in asia. They had a really strong profile. That growth has since leveled off and they have trouble getting it to pick back up again. They have also been very good at monetizing, but again, that has hit a plateau. They are having trouble with that. The competition in this industry is global and it is among the most vicious because these platforms can operate pretty much anywhere in the free world. It is very competitive and they need resources for that. Not just the normal cash to keep a company open, but they need to invest constantly in research and development. When you talk about hiring ai engineers, youre talking about very high salaries. We were just speaking with another Major Tech Company and they are talking about paying 1 million as a starting salary to highlevel phds in the technology field. This is a very tough business and very competitive, not just from the user point of view, but also for the talent. Combining these companies, the expectation is they will be able to broaden and deepen the talent pool and Work Together to add more functionality and try to get an increase in their user base. Yvonne net net, how do you see this . A winwin for both companies . There are also key risks for the deal as well. Certainly there is always a risk that the combination wouldnt go well and indeed they wouldnt be able to keep up with the kinds of services that their rivals are offering. Thats a very big risk. But at the same time, i think it would be positive for both companies, yahoo japan and line. They were both in a very tough position facing incredibly strong competitors. If you look at it from the softbank side specifically, not only was yahoo japan struggling, but the telecom part of that business is facing dramatically increasing competition with the trying thisuten, model were they were operate otelco and have Ecommerce Services on top of that they already have a very popular credit card, many hundreds of millions of users, depending on how you counted, even one billion users. That is powerful to compete with at the Telecom Level but also ecommerce and services. Tech, payment services, all of these are incredibly competitive. Potential. Ave global in order for a company like line to have a global media feature, a Global Messaging app, they have to have that. Yvonne dave mccombs, were Bloomberg Global business editor. We are counting down to the global session in india. Is standing by in mumbai for us. What are you looking out for us . Reporter last week, it was a truncated week. One holiday that came. And an extremely flat weak stream. You had just about 11,900. Now the base shifts a bit higher. You have it at about 11,800. That happens to be the 20 Day Moving Average on the index. We are pretty ok at these levels. The overall trend and structure of the markets remains positive. However, the additional upside, thats the hurdle at about 12,000 that has not been able to surmount. Private sector banks so far have been doing their best to contribute to the banks as a whole, which seems to be where much of the money is flowing in. However, if you take a look at the overall picture, the last few days have been particularly slow because of the macroEconomic Data points coming out where we see the industry production numbers at eight year lows, inflation coming a little higher as well. We dont see growth bottoming out, you may actually be in somewhat of a flat week for the index. Rishaad thank you, in mumbai. Coming up, our reporters going chart to chart competing for votes. Its battle of the charts, here on bloomberg. Rishaad time now for battle of the charts. Viewers can also access those charts on bloomberg with the bottom feature of your screen. Lets kick things off with sharon. Reporter hello. Should i start . Yvonne go for it. Reporter so the chart that i compares thetoday Profit Margins of asias biggest refiners versus crude oil prices. See, we are specifically looking at the singapore hydrocracking margins, which is reflective of the Profit Margins of asias biggest refiners, who turns crude into refined fuels. If you see it, it is really going down. Right now, it is supposed to be the best demand season, the best time of year where you see a lot of demand. Intoactually turned negative territory for the First Time Since 2008, where as crude prices have been up since the start of october. This only spells trouble for oil biggest crudehe consuming region, which means christmas is only a month away, but they are not really feeling any kind of the holiday spirit. Its looking bad for them right now. Rishaad so the message is, watch out, the Oil Companies tending toward relying on refinery margins. Thats what we are looking at there. And andrea . At ther my chart looks kiwi dollar, especially how Asset Managers are holding the most short positions in the kiwi ever. This is interesting because it comes as trade is turning more bullish on the kiwi. Going back to last week, the reserve bank of new zealand surprised markets by Holding Rates Steady and defying predictions of a cut. Morgan stanley has come out to say the kiwi is one of the bestperforming currencies in the first half of next year on the back of a china and Global Growth rebound. The result is optimism around about some kind of a trade deal. If we do see some sort of a recovery, you will see these strong flows that have gone into u. S. Assets which have dollar. Ned the they will slow and any u. S. Dollar weakness could be most pronounced against cyclical currencies such as the new Zealand Dollar. There is a risk that the new Zealand Dollar will actually go up if these Asset Managers scramble to couple cover those short positions. Rishaad i really like that one, andrea. But im going to give it to sharon, just because it does kind of give us an idea of whats going to happen with those Oil Companies on the report earnings. They are both excellent. Dtv to you can go to the browse those charts. This is bloomberg. 11 00 theres almost in singapore. We entered the last hour of the morning session in hong kong. Here is a look at the top stories. Violent protests continue in hong kong after another week of chaos, police threatening to use live ammunition if the unrest continues. Chinate the u. S. And hold more trade talks. The pboc warns of challenges and says it will support the slowing economy. Rishaad and sri lanka charging a new course. This is Bloomberg Markets. Juliette a mostly higher start to stocks here in asia, particularly in the hang seng index. Last week it had its worst week for hong kong stocks since august, down 4. 8 . We are seeing a reprieve today. The Hong Kong Markets leading gains. You are seeing korean stocks under pressure, along with those in australia. I want to show you what is happening in the currency and bond markets, because we have the pboc cutting the repo rate. This is the shortterm policy rate. The first cut to that since 2015. A little Downside Pressure coming through on the offshore currency, but have a look at what you are seeing in the bond market in china, yields down three basis points on the 10 year in reaction to this cut. Dollar. Ching the we had more disappointing data, down 12. 3 year on year, their worst performance since june. We are watching the hong kong dollar pending the unemployment the, expecting to show impact of protests have had on the city. Looking into the indian market as it gets underway just under 45 minutes from now. Futures slightly higher. Could be reversing the losses we saw in the session on friday. Moving to the downside with regards to what happen on the last day of last week. The rupee very stable here. Just over the last three or four days moving about half a percent stronger against its american counterpoint. Yield and the sovereign note, 6. 52 . That is a look at what is going on in india with a positive start indicated by the futures contract there for when things get going. Lets get over to new york for the first word news. Reporter thank you very much. We will start with the latest on the u. K. Prime minister Boris Johnson aims to win the support of u. K. Business later today, offering tax cuts as an olive branch for the disruption caused by brexit. He will make his offer as the Election Campaign heats up with the first televised debate in the release of policy promises from all sides. The december 12 vote could determine how or if the u. K. Ultimately leaves the european union. Morgan stanley says there are reasons to believe the World Economy will recover in the First Quarter of next year. Comments say a combination of the easing trade tensions and looser Monetary Policy will lift Global Growth. Add the risks remain, including the potential for more tariffs and late cycle challenges in the United States. Saudi arabia has agreed to lower its valuation of energy giant from the size of its initial Public Offering to ensure a successful debut on the Riyadh Stock Exchange takes place. Aramco will sell 1. 5 of itself. That is about half of what had been considered. This is pending an ipo valuation of about 1. 7 trillion. Now to the u. S. And the Federal Reserve, which says prolonged low Interest Rates could dent bank profits and push lenders into risky actions that might threaten the Financial Stability in the u. S. Report saysearly the rate squeeze could erode lending standards. Last week, fed chairman jay powell suggested low Interest Rates might be a permanent part of the u. S. Economic landscape. 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. Morette to our top story, chaos in hong kong after police moved to clear protesters at a university. The city is bracing for more disruption after protests left the city paralyzed much of last week. Here are some views from some of our guests earlier. It is in a terrible state. The hotels are empty, the shops are empty, the restaurants are empty. We are in a recession. They are harming the lives of everyone, so i think this is totally wrong. We have to make that very clear. A message to the entire society. We urge the opposition camp to cut ties. They also refused to do that. When the violence gets to a point where people are bombsally throwing petrol and throwing bows and arrows and wounding people, you cannot let that go on. Thats what happened this morning. The police intervened without widespread use of live ammunition. We have seen underperformance against any chinese index you can imagine, and certainly against the u. S. Index, which is unusual. North asiar chief correspondent is with us. We dont know where the situation is, but hong kong is just on the others of the harbor. It has been the scene of remarkable actions by the protesters and the Hong Kong Police as well. Reporter there was a predawn motion by the police, an order for dispersal of this encampment as protesters, hundreds, maybe into the thousands, of hardliners had barricaded themselves. They had set fire. This was about 5 00 in the morning when we were out on the streets reporting this. It has gotten to the point where both sides have dug in their heels, hardened battle lines on both sides. What happened at the Polytechnic University is police moved in. They were repelled by protesters throwing molotov cocktails, petrol bombs, and the like. And there has been the dispersal operation. Many students did come out, and we are hearing the police immediately arrested them. There were overtures by the president of the university to try to broker a truce. We are not sure how far that went. But he even volunteered to travel to the Police Station with those who were arrested. It is a standoff right now. What made it worse was earlier this morning the police in a Facebook Live message said, if our dispersal operations meet with increased violence, we have at our disposal live ammunition. Fortunately, from what we have heard, no live shots were fired this morning. But there were three shots fired over the weekend. Juliette it is becoming hard to continue watching these pictures and see this violence continue to escalate. But as we know, it is affecting the economy. Hong kong already entering a technical recession. What are you seeing on that front . Reporter i will be watching that unemployment number closely. Athas held pretty steadily, 2 since july. Economy isd, this dominated by the service industries. We know tourism has been hit badly. Accommodations, hotels, businesses hit hard. Retail has been hit hard. We are expecting a slight uptick in unemployment to 3 . But when you look at the tourism related sector, the rate hit nearly 12 in the july to september period. Economists are telling us the retail, accommodation, and Food Services industry jobless rate could hit 10 by mid 2020 if we are on this should check three right now on this trajectory right now. That could get the headline unemployment number at 4 . It does not sound like a huge number given the dramatic scenes we are seeing on the camera, but we have not seen numbers like this since november 2010, when we were in the aftermath of the Global Financial crisis. Rishaad where does one go from here . A political solution not on the table at the moment. It started off as a political issue. We seem to have moved further from that. Reporter we heard from the former head of the hong kong democratic party. She is prodemocracy leaning, but she said the one thing that will diffuse this is an independent commission of inquiry. Not just on the police, but on every aspect of this, even the independent overseas advisors who have come in to advise the police. The complaints council, which is what carrie lam is saying should do the job, they even set it is not doing the job. A number ofre were people saying there needs to be a commission into all aspects. Both sides of this divide want that. Reporter we had the first emergence of the pla soldiers. They were carrying brooms, not rifles. They were in tshirts, not uniforms. But some say that is just a step away. Rishaad Stephen Engle with us. Still ahead, saudi aramcos valuation coming in short of expectations as they seek to raise up to 25 billion in its ipo. We have the latest on that deal coming down the pipeline. Juliette next, top trade officials held constructive discussions on the phase one trade deal. Will Global Growth concerns motivate the u. S. And china to lock in a deal . This is bloomberg. Youre watching Bloomberg Markets asia. Im Juliette Saly in singapore. Rishaad im Rishaad Salamat in hon beijing. We see the hong kong unemployment reading coming in on tuesday. We see the first televised debate as Jeremy Corbyn and Boris Johnson go headtohead. Juliette we get the fed meeting minutes. Thursday, Bank Indonesia is likely to hold its policy rates steady after four consecutive rate cuts this year. We get more Economic Data from japan with headline inflation rates do on friday. Chinese authorities are warning there are more challenges ahead for the economy and are moving to shore up confidence. In the last era, the pboc lowered the cost of charges on Market Operations are the First Time Since 2015, cutting the seven days reverse repo rate. In its latest policy report, the pboc says it is ready to take any measures to support the economy as investment growth slows and factory output remains sluggish. Rishaad we go to the u. S. And chinese trade negotiators speaking on saturday. They tried to address core problems as they work to an interim deal. That was made at washingtons request. Both sides agreed to remain at close contact. They signaled talks are entering the final stages. Juliette lets bring in the chief macro strategist for asia at deutsche bank. What did you read into these constructive discussions that took over . Are we any closer to a trade deal . There are objectives put to these talks which are useful because it looks like the direction is correct. But we know what has proven to be toughest is the last mile in these negotiations. What needs to be seen is whether they can come to a deal or a decision on some of the key outstanding issues. Over the last few days, i have to say that some of the news we just came through has made that a little more doubtful. They have ake central condition. Whether china is putting enough on the table, especially in terms of stronger language in terms of intellectual property. There have even been doubts expressed on whether china can commit to a new target. Overall, we need to see when that deal takes place. Juliette it is two steps forward, one step back. At the same time, we have had a little bit of a reprieve, and easing in terms of Monetary Policy globally. Does that put them into a cyclical recovery coming through for the First Quarter of next year . Guest it is still very conditioned. The fact that the headwinds to the Global Economy, the trade and the risk of a hard brexit, both of them neither of them got resolved. , to our mind, there is something to be said about where business intimate is, and maybe where Business Sentiment is. It is still very contentious. A lot has beene, made of the bond market. We are looking at a handle of 2 off u. S. Treasuries. Up and came down in the yield considerably. 2 and 2 plus, what signal does that send to people . Guest i think at this stage, i would argue the markets are clearly disappointing in the near term for the prospect of what is happening with the trade deal. Stage, argue at this that sends a positive message to the markets or the economies. It is believed the global cycle is at the point of ottoman out. Of bottoming out. That if both these disputedwere to get over the next weeks or months, it could be slightly higher. Also haveell me, we the trade war where it is. Would yields go up if we got a phase one trade deal . It is taking so long for them to get to this phase one deal. The question has to be, how is be it seems like the two sides are very far apart if they cannot even agree on the lowest low hanging fruit. Guest expectations for phase are a lot less as compared with what they ask for phase one. In part, it is the nature of how these shape out. Ago, itcouple of weeks wasnt even part of the narrative. Now it seems very central to fees one being structured it seems very central to phase one being structured. Say thatt is fair to the expectations of a ceasefire or some truce are relatively high. It is very unclear what will be part of it and how quickly we will get to phase two and three. Rishaad you say the direction of travel is correct, but with regards to this, the point is the speed of that travel looking like it is moving at the speed of tectonic plates. That is the problem, isnt it . Deludingtill been ourselves that we will not get a recession next year, or is that firmly on the back earner . On the back burner . Guest some of these headwinds, even if we get to the point where we have not necessarily rolled back or deescalate it in a meaningful manner, there will be some reprieve. Pmis have been improving for the last three months. I think there is something to be said for sentiment. You see with the german numbers last week. Central banks everywhere seem very willing and ready to be deal with any further Downside Risk that comes. There is something to be said about the bottoming out. Like i said, what is the nature of the bottoming out . It is probably too early to tell and conditioned on some of this, and the speed. Juliette i have a chart on my terminal showing it is a crucial time for the fed at the moment. We saw the Market Pricing cuts in this rate climb. Onant to get your opinion what it means for emerging markets and whether they are still attractive for investors. Guest it has been a good trade. To some extent, that is being helped the fact that as the fed has been cutting rates. If some of these tensions are ebbing, we are at a point where it is more fairly priced in markets. It becomes less obvious going forward. In a passivee spot. But if we see the growth cycle move up, once the emerging market currencies become a more attractive place, they are a bigger growth as it. Juliette always looking for attractive trades. Thank you so much, sameer goel from deutsche bank. Plenty more ahead, including our stock of the hour. Stay with us. This is bloomberg. Look at lets have a the latest business flash headlines. Softbank planning to combine its japanese Internet Business with a possible shape popular with a popular messaging service. Take them through an estimated 14 a share, then the former yahoo japan will merge with the company in october next year. Boeing is admitting they will have to work hard to regain trust with the grounded 737 max 8. Ceo said boeing is dedicated to safety and integrity, and it is going to restore confidence. The plane has been grounded since two creches. Ha two crashes. Lowerpower unit could emissions and help airbus launch upgraded competitions to the dreamliner. Design be based on a similar to the triple seven at the 777x. Time for the stock of the hour. You are looking at shipbuilding. Tell us why. Juliette it is leading gains on the index in singapore, jumping the most in two months. This is after we heard a bt is safehat the chairman and will return soon after being on leave for more than three months to assist in a confidential probe in beijing, according to the Business Times report. Pricee seen the share jump as much as 9 today, currently up by about 8 . If we look at what it has done over the course of the year, it has been interesting for this stock, which those a wide range commercial produces and produces commercial vessels. It is down by onl almost 14 . A sharp drop came through in august. There are bullish analysts on this stock. Has fallen short of its annual target of 2 billion in new orders. Is safeutive chairman and will return soon after being on leave for more than three months. This is giving a big boost to the stock today. To get big limbs of this and other stocks of interest, to get a glimpse of this and other stocks of interest, it is on your bloomberg. Rishaad lets look at these chinese equities toward the lunch break. Three minutes for shanghai and shenzhen. The story looks like we cut advancing stocks across the board. Compositeai shenzhen is up. Backdrop of the pboc coming out and cutting its reverse repo rate by five basis points. Liquidity and cheaper supply of cash in the market, all against the backdrop of people waiting for fresh developments on the u. S. China trade front. We have hong kong outperforming for a change. Chinas morning session ending in just about three minutes. The shanghai up by 0. 5 . This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Juliette it is almost 11 30 a. M. In singapore. We are in the middle of the trading day. I was just talking about the shipping company that is moving higher. We are seeing movement coming through on the dollar, just slightly holler against the slightly higher against the greenback. We had nonoil domestic exports slumping, 12. 3 year on year, compared to a 10 drop estimated by economists. And a slide in pharmaceuticals. That was among the biggest contributors. Lets get the first word headlines with su keenan. Su home sales in hong kong plunged over the weekend as increasingly violent protests shut down parts of the city. A boost to property sales last month from the relaxation of orgs rules has proven to be from mortgage rules has been shortlived. Fell 78 over the weekend from a month earlier. To singapore, the latest data on exports show they slept further last month, down more than 12 yearoveryear. That is the worst performance since june. They were hurt by pharmaceuticals. However, while critical Electronics Industry posted a theyedigit decline, showed their least bad results since april. The brushfires in australia continue to rage across much of the eastern part of the country and are set to worsen as dry and windy weather moves in. Firefighters are struggling with more than 100 fires in New South Wales and queensland. Local residents have been advised to move out. Four people have been killed, and a 300 homes destroyed, with about 2. 5 million acres of farmland burned. Lebanese banks are working together on temporary emergency measures with the company paralyzed by weeks of protests, including a failure to agree on the new government. Lenders have agreed to lift a restriction on new money coming from abroad and set a withdrawal limit of 1000 a week for accounts denominated in foreign currency. Banks are asking clients to use credit cards to meet their needs. 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. Lets get to market action, and a muted start. We have the Hong Kong Market putting in a good performance, leaving equities higher. Lower last week, but at the moment leaving things up. 4 as it comes back from its lunch break. Kospi and australian markets weaker today. We are were eating we are waiting on developments. No trade deal ceremony set yet. We have the tariff increase looming large. This is the current position we find ourselves in. We also have data out of thailand. Getting reaction out of the thai market, growing to point 4 for the third quarter, when we were expecting 2. 7 . They are looking for the fourth quarter, which should see an improvement in growth. They are also cutting their gdp outlook for this year, seeing 2020 as an improvement and saying local demand should help that. That is where we are. Lets look at the prospects of the Indian Trading day, about 12 minutes to go. We have the futures contract moving to the downside, 0. 1 lower. We ended on friday. By the end of the session, they were up i 0. 2 to recoup. A tad stronger against its american counterpart. And the yield holding pretty firm, 6. 53 . Juliette sri lankas president ial election has ended in victory for a china friendly candidate. He won more than 50 of the vote, which shows the country remains deeply divided among along ethnic lines. Took the north of the island. Our next guest believes one of the challenges for the new president will be to revise economic development. Lets bring in Chulanee Attanayake from the institute of south asian studies. Great to have you with us. Lets get to what we are expecting, because there could be populist measures in terms of tax cuts and pharma subsidies. Is that what will happen in terms of trying to appease voters . Guest i dont think so. Carefully look at the election manifesto, it is very forward thinking policies. He talks about economy being able tod provide the necessary skills for the future good of the country. About some of the policies,ed economy such as providing subsidies for the farmers. In orderu read, it is to provide a long Term Solution investorbased agriculture. Juliette that was the platform, but he will have other measures as well. What about the shift in terms of what they are saying could move more china friendly . Does that mean it is antagonistic to the west . Guest i dont think so, because i think when you call the previ ous government as china friendly, you are referring to a different period of time. We forget the fact that soon after, the west did not come out and assist sri lanka in its development measures. We are living in a different period now. The United States and other western countries are interested in sri lanka. I think that in this scenario, it will not be completely china centric. Claimed he will follow neutral foreign policy. In that way. Room rish in hongs kong. Beijing may be happier with having this victory, their man, as people have been putting it. How concerned will washington be with regards to this . They have been trying to nurture sri lanka into its own sphere of influence. What is a very strategically important country. Think sri lanka is placed in a particularly important place. As a sign of that, it becomes a victim of the geopolitical condition. Someis why there are differences between the United States and china, geopolitical competition in sri lanka. But i also think this is a great opportunity for sri lanka. The more powers are interested in you, it also provides more funding for our development. At this stage, what sri lanka needs is for investment in its own development. There was a huge turnout. There were a lot of people concerned about where the country was going. What were the main talking points, main areas of concern, where people did vote . Tell me, what are the challenges that the new leadership faces . Guest i would say when we look at the electoral map, there is a clear distinction between the south and the north. The south wants stable leaders hip, and the north has its own other priorities. What i believe is the current president will be able to requirements for the communitys equally. However, that is a challenge during the time of transition because still the parliament majority, the United National party. Until the election, that challenge would be there. Secondly, he will have to make social changering elsewhere. Juliette what about the concerns of human rights . That happened in the previous regime. Guest again, this was a different period of time. The way sri lanka enters the protracted conflict was way back. There was no other choice. There was a terrorist organization, and the sri lankan worked for peace building in the previous times, which did not since again which did not succeed. The previous government took measures in the line of reconciliation, which was criticized widely without giving it a chance. Theonciliation from protracted conflict cannot be achieved within five or six years. It is a long process. There are generations of people who only saw war. It is a long process. I think sri lanka needs more time for that. This government will continue its process in the future. Juliette thank you for coming in. Chulanee attanayake, Research Fellow at the institute of south asian studies. With me here. Coming up, we go to mumbai as Indian Markets open for the week. Stay with us. This is bloomberg. Juliette saudi arabia has set aramcos valuation well below crown prince hamed to trillion dollar grow to trillion dollar goal. Trillion dollar goal. What other factors playing into the valuation . Reporter for them, it is oil. Oil is around 60 a barrel today. When mbs first said that he wanted to potentially look at the ipo, he was looking at a valuation of around 2 trillion. He was expecting the price of oil to rise. I think that market expected the price of oil to rise to even 100 a barrel. That has not played out. The market is oversupplied. The prospect of a 2 trillion aramco is outside the realm of was ability for a lot of folks inside the market. Outside the realm of possibility for a lot of folks inside the market. There could be a petering off of demand for oil. That is also a factor as people move from combustion engines to electric vehicles or more efficient cars. Rishaad there is a lot riding on this for the future of saudi arabia. Reporter yes. As i said, this is going to be one of the biggest ipos ever, and they are hoping to raise money to be put into what saudi arabia calls therir 2030 vision. They want to shift into different technologies, renewables, and services. They want to put the ipo gains into their Sovereign Wealth Fund and invest that into different types of technologies and things that can push a future for demands fall. They want to future proof themselves going forward. Ourette thank you so much, Energy Reporter in singapore. Indias markets just opening. Lets get to mumbai, where our reporter can talk us through todays session. The markets closed flat last week. How are things looking today . Tworter in the last sessions, we have seen selling come in for the Indian Markets. There is a bit of resistance around the 12,000 mark. There is selling coming in around those levels. Markets have opened. 11,925 is where the nifty is trading. As sensex is also up. The Supreme Court voted on the steelcase. Gainse nifty 500 has seen nearly 30 points. Some of tell us about the companies you are tracking. You are looking at these deals. Reporter thats right. These companies are in focus. S p has informed their rating. They have changed the outlook from stable to positive. Steel stocks have not performed well globally. These companies declined nearly 35 this year. In the opening session, we are seeing 1 . The bank of india was up after the Supreme Courts verdict, which means the banks can recover their money. State bank of india headlined nearly 2 billion. Nearly 90 of the deal can be recovered. They withdrawn their bid for communication assets. They stated they are not happy with creditors moves to extend the deadline. Their numbers are good. Lets see if there is any followup this week or not. Juliette thank you so much. The airbus ceo discusses the impact of u. S. Tariffs on european aircraft and how the company is managing the costs. Our exclusive interview coming up next. This is bloomberg. Juliette youre watching Bloomberg Markets asia. Im Juliette Saly in singapore. Rishaad im Rishaad Salamat in hong kong. Airbus is facing uncertainty as it talks up the cost of geopolitical tensions. Talkingguillaume faury exclusively to bloomberg about the impact of wto tariffs on passengers, and the longterm relationship with their global partners. Far, it is too early to say. Tariffs applied on airbus planes going from europe to the u. S. , so it is important but a small p art of the global markets. Aviationslow down the industry, the aviation business. Therefore, we are advocating for a resolution. Reporter when will we see a decision . Guest the important one is the wto holdings, the eu versus the u. S. Next year. That is the next big milestone. Reporter are you covering the cost of the tariffs with your customers at this point . You dont see much affect yet. Is that because you are covering the cost . Guest the airlines have to pay the duties. That is the situation. Managing the situation with our customers. Reporter does that mean you are compensating . Guest basically on the longterm, this is not sustainable. That is the point. We have to find a resolution, we have to find a way forward. It is not sustainable for both sides of the atlantic. It is an ecosystem. We deliver planes to the u. S. Orneed to find a resolution it is a loselose. Reporter do both sides want the resolution . Guest probably not at that stage, but i think it will be the case moving forward. The rebalancing will take place. Reporter lets talk about brexit. Do you see airbus moving production out of the u. K. Regardless of the political trade deal that ends up getting done . Guest we have a very strong base in the u. K. We are mainly in manufacturing for the wings of the planes in the u. K. , around stole, and around bristol, and we are very competitive. Is for theerm risk potential no deal brexit, which could have a lot of disruption in the supply chains. But on the longterm, we sincerely hope and believe we will remain competitive, the u. K. Will continue to have a trade relationship with th eu. We are longterm investors, and i would not like to be in a situation where we would have to make important Investment Decisions now. Very important is to regain trust moving forward. Reporter would you move production or are you allowed to move production out of the u. K. , regardless of what happens with brexit . Guest no. We have a strong base in the u. K. There is no reason to move production out of the u. K. If you visit our plant where we manufacture the wings, we cannot just move them. The point for us would be where we have to make an investment this year, where do we do these investments . Reporter if this deal goes through, and we dont know because there are elections, but if the current deal goes through, what do you need in the future relationship to be happy . Guest the agreements on the table is positive. The longterm relationship between the eu and the u. K. Has to be defined. There is a lot of work to be done after brexit to define the longterm relationship between the eu and the u. K. That is a lot of hope there will be a relationship between the u. K. And the eu. We are trying to explain to where this longterm ecosystem keeps going, because we like this ecosystem. It is very competitive. Juliette that was airbus Ceo Guillaume Faury speaking exclusively to bloomberg in london. A quick check of the latest business flash headlines. Bill gates has regained his crown as the worlds richest person. He moved ahead of jeff bezos at close of trading friday, helped in part by a Cloud Computing contract at the pentagon. Microsoft shares have climbed 4 since beating amazon for the award, taking its personal wealth to 110 million 110 billion. Hp has rejected a bid from xerox, saying it significantly undervalued the company, although it remains open to further talks. Hp says there are fundamental issues to be discussed in any potential merger, including whether there is value for hp shareholders. Hp notes declining revenue since last year, which raises questions about its business trajectory and future prospects. Andy isia utility pg threatening to cut power amid forecasts of dry, windy weather. Customers in the north bay and the foothills of the Sierra Nevada may face are castrated lockouts design may face orchestrated blackouts designed to avoid fires. Tesla is ready to invest about 4. 5 billion in its new factory in berlin. 150,000n to churn out cars a year when it is up to speed. Subsidiesreceive eu with the equivalent of 330 million to bring the factory online. We are in beijing for the new Economy Forum. We have a wide range of panels, tum gary rishel, rachel to jan, and they are some of the people we are talking to. Juliette it is going to be a very big wake. Lets check in on markets to kickstart the week. We are seeing upside. Those constructive talks between the u. S. And china, the nikkei up by 0. 4 . Hong kong market is leading gains after a terrible week for hong kong stocks. Last week, they had their biggest slump in months. A bit of a reprieve coming through today. Some weakness in south korea and australia today. By aboutx open end up 0. 3 . Rishaad lets take a look at what is going on in these currency markets. We have the cnh after that reverse rep was cut by five basis points to 2. 5 . It has not provided much of an impetus, even though there is more liquidity going into the chinese markets. Pretty much stable for the you want. 10 year yields, via the refax of the repurchase move. Stable. Uch the government downgraded its forecast for the year. We had weaker thirdquarter numbers. Percent. 4 we are looking at blueba yousef this is bloomberg daybreak middle east. Our top stories this morning. Reporter hong kong chaos continues. Police clear protesters at the university after a weekend standoff. The government sees the city suffering its first Economic Contraction since the financial crisis. In other news, the pboc cuts shortterm policy rate for the First Time Since 2015, aiming to shore up confidence following a string of poor Economic Data. Tracy saudi arabia lowers its target for aramcos valuation. Even so, it is still likely to easily overtake apple as the