Slightly to the downside. The rallyderpinning we are seeing today. Adding to the losses that we saw for the gold price on friday. That is indicative of where we are. Take a look at what is going on here. There is a big rally for bonds and australia. As we getis is japanese funds shying away. Paper. Ssie that is where we are right now. Lets find out where we are with the first word news. Su thank you very much. Lets start with Michael Bloomberg. He is joining the crowded race for the white house, entering the Democratic Campaign with a mix of moderate policies and experience in business and government. The 77yearold launched his bid by saying that President Trump is an existential threat to the u. S. And to its values. He added that america cannot afford any more of what he termed was the president s reckless and unethical actions. Michael bloomberg is the founder and majority owner of our parent company. Minister Boris Johnson has launched a conservative Party Election manifesto, pledging to reinforce the National Health service and cap future tax increases. The tories hold a doubledigit lead in most opinion polls. That is ahead of the december 12 vote. One analyst suggests johnson will when a healthy parliamentary majority. Labor dismissed the tory manifesto as a billionaires dream. I wanted to be an exciting and productive dream. A year of prosperity. Do you want to wake up on friday the 13th and find a nightmare on downing street . [laughter] a coalition of chaos . I say lets go Carbon Neutral by neutral by christmas. Accusations against Benjamin Netanyahu of abuse and power. Primaryll hold a election. Israel is still without a government after two inconclusive elections this year. Against new protests fuel price increases have arrived at across the country. This Video Showing Police firing live rounds of demonstrate ammunition into crowds of demonstrators. The government is slowly restoring the internet after a week of shutdown. Continued officials to blame iranian exiles and foreign conspirators for the protests. I am su keenan, this is bloomberg. It does seem like prodemocracy candidates are ready to seize the election. We have a reporter outside on the streets to talk us through the process. Many records were set this time around. The record turnout. Sweep. Ocrats winning a as many as 388 seats out of a total of 452 can be taken by the prodemocracy side. Sawre the elections, we that the proestablishment side, which is essentially pro china, held more seats. A Sweeping Change across the board here. Ais has been seen as referendum on the protests, the government, and how they have been performing. The former chairman of the liberal party, which is pro establishment. This is what he had to say. More than 70 voted for the democrats. We have to have second thoughts. Among some of those wishes of the prodemocracy crowd, the , include genuine universal suffrage. An inquiry into police behavior. These are among the key issues that they have been demanding. Now the ball will fall into the court of the government to see how they are going to react. Rishaad these are district elections. It means that these counselors can advise the government here on things like fixing up parts, cutting down trees. However, it is more than that, isnt it . What happens next . Traditionally speaking, you are right. District counselors do do all those things. Now they will take on a bit more significance. Because this has been a public vote about the sentiment of what is going on. It is a call for the government to listen to what is being said by the vast majority of the voters out there. Now the ball is in the governments court. They really need to respond. One of the five demands as the independent inquiry into police action. At least a government has to respond to that. Theres also a call for universal suffrage. These elections also do have some impact further up the political line. Will voteon committee for the next chief executive. Thending on how well democrats do, and it does look like they will make a set gain, they will have some impact on how those other political structures are set. It could also make governing a lot more difficult for the current government. They will be more likely to be opposition. Rishaad thank you a lot. Kong on streets of hong the Election Results we had from sundays vote. David lets get to our other trade story. China says it will be taking a major Sticking Point in the talks. Plan . S the m i think youre right to characterize this as incremental. They want to raise the penalties for intellectual property theft. They want to lower the threshold for who could be prosecuted for some of these offenses. They want to make it easier for victims to claim compensation. More broadly, china is looking at 2022 as a target date for radically reducing the number of intellectual theft violations. That is the picture we have had out over the weekend. We have traded goshens going on. Ip theft has been a bugbear for the trump administration. That is part of why we are getting this movement from china. Private companies here in china are some of the biggest victims of ip that. It does dovetail with domestic policy to support domestic companies. Could help them as much as it moves the trade negotiations forward. Rishaad that is the point, isnt it . Does it move the dial in anyway . To some extent, it probably does some way to appealing the concerns in washington. This is been at the heart of those complaints from the trump administration. Have of the executives said in the last 12 months that ipy are concerned about theft. There have been improvements. It is less of a concern than it once was. But it is still there. It is still on the list even if it has moved down slightly. Looking at the soft and unofficial deadline of december 15. That is when these additional tariffs could come into place. Both sides say they are communicating. . Still about agreeing on agricultural processes. David great stuff. Tom mackenzie in beijing. Good to see you. My remind you a little bit of earlier this year when we saw the possibility of a trade deal being done . We are seeing that now with this runup in stocks. We could be heading to a fall if we dont get something done here. This is definitely one of the risks that is out there. We just published our 2020 views. There are two main risks that markets need to be aware of. They are wellknown and well flagged but they are certainly the ones to Pay Attention to. Number one would be traded number two would be the u. S. Election. On trade, the market has rallied quite significantly on the hopes of a trade deal being done. We have a trade tensions barometer up on bloomberg. It is at the 70 level. Which is pricing in the high probability of a deal. It was back at about the 10 level four months ago. Markets have had a strong repricing. The riskreward here is negatively skewed. If a trade deal is done, markets will be up flat. If there is no deal, they will fall. The second is the u. S. Election. If there is a possibility that there could be a unified democratic administration, it is highly likely that the tax cuts of 2017 would be rolled back. Then you are looking at something up to a 20 correction in the s p, which would be hard for our markets are to dodge. David i want to talk about the hong kong district elections. Does that change anything for you . Are sincere is that there is a pretty good balance with hong kong specifically. We are not just talking about the hang seng index. Kong index is a narrower focus. A lot of bad news has been priced into that. That, thee numbers on at over arading standard deviation below its tenyear average. The property stocks are trading at about a 50 discount. That is significantly below where they typically trade. That suggests a lot of negative news has been priced in. We just had a peaceful outcome to these elections. There may be room for some appreciation. Marketl maintain a weight of hong kong. The new cycle has been so unpredictable. That volatility makes it hard to handicap when one should be entering the market. View, have a longterm the more you should be oriented toward a positive view. Rishaad please stay with us. More coming up. We are also looking at the view of a regional rebound. Saying that trade tensions and the american elections could make 2020 a bumpy ride. More on that on the way. On this hour,ter hong kong home prices seem to be holding up in some places. We will be digging for the details. Have a look at the chart. We will talk a lot about this later. Youre watching bloomberg. Rishaad as we approach the end of the year, that see what we might expect from the markets. You were up all across the weekends to take us through this. But start with geography. Our big picture view is that we think next year will be moderately positive. That the Global Economy should have has been pretty well priced by the movements this year. That informs our broader view. There are some opportunities for better performance. Is china. The key point here is we are shifting our view from being to offshoree shares. Done the best in the region this year. There will be less of a positive flow argument there. That has provoked a lot of extra buying. We think it is the better for us to be writing. India, very quickly, we think there is a longdelayed cyclical recovery that will come. We believe they can give decent returns. We think there is a recovery in tech hardware. After a very disappointing earnings decline. Taiwan has performed exceptionally well. Australia is still extensive. Other markets are not looking as attractive. Being, youe point said several times in that answer, the question is, will there be a cyclical recovery . Tim that is a good request and. That is our core view. Maybe that does not come through because, truth be told, most forecasters have a more constructive view of the Global Economy. That has been pretty much true for the past few years. We do think there is good reasons for a moderate improvement. The significant easing of Interest Rates this year. That should help for growth. Number two is the moderation in trade tensions. That should be better for the environment. As long as trade is ok, we should be able to have some moderate lift. David if we dont get a trade deal, does that change anything . Is ok. Still our central view is that if we dont get any further escalation, maybe we get a little bit of rollback of september tariffs, but we are not looking into a significant decline in tariffs. If things are stable, we will get a moderate lift. If we have a reescalation of tariffs, that would change the numbers. Rishaad things like korea had a rough time in the market. I guess that pushes things down further. Thank you for mentioning valuation. The key points this year, just to give you a few numbers, we are looking for Earnings Growth in 2019. The market is up about 10 or 11 this year. The valuations expanded 18 . 13. 7 is at the top of the range. A lot of that recovery and earnings has been priced. I think the return next year will be more moderate. David i want to ask you about. That is contentious on some of the other things youre thinking about. Market saw a stock last week saw a start drop in that market. You think the market is expendable . What assumptions need to be in place . Tim it is a great question. The simple answer is earnings have to come through. Korea is very tech heavy. The earnings for the region fell 40 this year. You need to have that recovery of an easy base next year in order to get the market to come back. Rishaad one last question. Aggravate ar geography or jurisdiction you would completely ignore . Tim i would not go quite as far as that. One of the largest sectors by earnings is banks. If argument for the banks, we underweight them, is pretty difficult. In a world where Interest Rates are low and the yield curve is flat, that is not good for bankers. Rishaad good to see you. David coming up, we are talking hong kong. Alibaba says its retail offerings are oversubscribed and they will multifile multiply the shares. This is bloomberg. Rishaad we are back. Time to check in with the latest business flash headlines. There has been a changing in the order among asias most valuable companies. A rebound in prices helped their profit turnaround. Samsung earnings may remain in a double digit slumped even as they have been beating estimates. It is a nether day down under. The formula maker has been bought. David a quick look at the big movers across the region. Is the forecast for today. Very few movers to the downside here in hong kong today. This is bloomberg. Is 10 29 i am su keenan with the first word headlines. We start in india. Indian would be the only immersion currency to weaken this quarter. Economic growth at a sixyear low. 5 from a high and july and is being pressured by rising public debt among shadow banks. Is deeper slowdown and longer lasting than it originally thought. Democracy candidates in hong kong have taken an early lead in the District Council elections according to local media reports. The early count suggests a. Andslide win they cast their ballot sunday and the first opportunity to comment after months of protests. Is theedia says the u. S. Biggest destabilizing element in hong kong. Riskmerican politicians pushing the city into a dangerous of this as they use the hong kong card. The commentary comes as President Trump deliberated setting into law a bill that would require annual reviews of hong kongs trading status with a rhinoceros has become extinct in malaysia after the last of its species died of cancer on saturday while living in captivity. This monitoring rhino is the smallest of the species and it once roamed across asia, however its numbers have shrunk drastically because of deforestation and poaching. This is bloomberg. Global news 24 hours a day on tictoc and twitter powered by 2700 analysts and journalists. Im su keenan and this is bloomberg. Another angle on one of relatively stable despite months of unrest that we have been witnessing. This might all change. One of the biggest property agencies in the territory. We are joined by the director of Property Data and research. We put it t charts. We are up 10 . We have come down 5 . Why the crash . The itlook at it, is only 5 on average. Even compared to last year, more than 10 . Experienced up and down cycles. Year,10 correction last another 10 in the first half of this year. The the whole reason other reason is because of the political situation. Not to mention, Interest Rates. Last year, people expected Interest Rates to hike over time. , they end of last year did not expect a rate cut this year. Together, with cumulative demand, the public price increased ring the first half. Talk. Er with the trade it is more correct compared to last year. The demand is not cheaper housing, but it has been laid at the doorstep. Out andrs have come said it would be putting more out. Are you seeing more signs of them actually doing that . Difficult it is because if you look at it, over the next five years. , like look at this number average, 18 to 20,000 a year. We are talking about completion. We need time to build the unit on the site. So maybe it is not being materialized. Rishaad a greater sense of purpose and getting that sorted out. Actually, it is increasing. That 93,000 is still not enough. 15 to 20,000 units a year. If you look at the next five , it increases about 37 . ,f you look at the longerterm you are talking about 99. ,ot to mention during the peak we are 50 short from completion. Years theast 10 population increased half a million. This is likely to continue. Demandlooking at organic from the population, what is the supply number that brings that from 20,000 . You mentioned about speculating. This duty. We had think the organic demand you are talking about, over the past three years, on average about 50,000 people get married. Think that is the demand. Thinkhe past 10 years, i that deters people but it makes it hard for people to upgrade their properties. As long as Interest Rates are low, that is what we know at this moment. Expect a crash. Is three or four times what the market can turn out in the number of unit. Do you think that is an accurate assessment . Yes. 90,000 over the next five years. The average is about 20,000. Even though we achieve 17,000 year in the past 10 years. You can see the price continue to go up. Key point. T is the is there a point when they level off . It will ease a little bit, especially if the Current Situation continues. The other important point is unemployment. The reason why the past 10 years , it is because of low interest rate. And low unemployment. Unemploymentears, hovered. I think, if unemployment increases, it will have some impact on price, but if you look at the supply side, if we do not see at many, if you they do not have the urge to sell. The Holding Power is pretty strong. We only see if the Current Situation continues. Does any of your analysis have any implications for the rental side . Rent increases, but not as fast as price. Rent is up a little bit because we have passed the peak season. Ranked te, increasing by 2 . Years, we see price and rent increasing. Increasing rent is not as bad as the price. David yes or no. Markete hong kong money need that . No. David loud and clear. Rishaad up next, more on alibaba. This is bloomberg. Rishaad you are back with Bloomberg Markets. Naming 10 potential directors. Saying they will live before fridays deadline. 10 billion needed from Warren Buffett to get that deal over the line. David shares down 1. 5 . A potential investigation by the banking regulator that would have the power to disqualify executives. Accused of widespread breaches of Money Laundering and of failing to spot the transactions. The bank says it already expects more than 50 million in terms of cost associated with the ongoing. Saudi aramco has taken it to divide. Bloomberg is being told the presentations whereby invitation only. A range of banks are struggling to raise outside of saudi arabia. This time tomorrow, one of the most anticipated listings. Here in hong kong. Rishaad we will discuss that. She is here in hong kong. Taipei. An is in do did alibaba decide to this in hong kong in the first place . It has been a longtime dream. They originally tried to come in 2014, but that fell through when they could not reach an agreement. Those ones were not allowed in hong kong at the time. The listing, the Hong Kong Exchange changed last year. That actually paved the way for alibaba to come home and give chinese investors a way to buy into one of the best success stories, something which the Chinese Government has long wanted. Comeis why they decided to back to hong kong. It allows them to list closer to home amid the u. S. China trade war. There are threats to delist. David hong kong needs every win. What does this mean for the hong kong story . It is a great win. We have seen increasingly violent protests here. The fact that a company can still come here and raise 11 billion, it is a great win for hong kong. Wherestill a place companies can come and raise capital despite the uncertainty and geopolitical backdrop that we have here. Rishaad lets kick it out to tim culpan in taipei. He said this company has a dilemma and perhaps it needs to do a buyback. Tell me, does it need to do a buyback . Had they run out of ideas with what they should be doing with their money . About buybacks often, people see them as a way to prop up a stock that is share priceith the is not doing well. A company like baidu, who has done buybacks, ways to look at doing a buyback, they do not need to do it, but other , such as apple have done buybacks. Priceof apple stock appreciation because of buybacks. Arians and billions of dollars , so no, alibaba does not need buybacks, but they do not need 33 billion. I do think that will be on the cards. Talk to us about track records. Had success has the company . Because they do not need the money. They are throwing off cash , so theyy quarter could basically go to zero today and still have 5 billion by next quarter. If you look at their track record, they have invested in a lot of companies. , theyelivery, logistics have not been good for margins. The last fiveer years, the operating margin is of course, they have to do that. They want to broaden the platform, but what they have done has not really been helpful to margins. Are manyimagine there businesses ahead of them. Buybacks would have to be on the cards. This time tomorrow, what have you seen . Does it slide tomorrow . Good, sopectations are we will see the official market trading this afternoon, but we were told by sources that they are at a premium, so that is a good start. Mentioned, the retail portion was over 42 times oversubscribed. That is also a strong sign of retail demand for the stock. Retail investors are seen as a good gauge. Fingers crossed, but the signs the stars are aligning. Rishaad he was saying that operating margins are taking a hit. A lot of spending going on in the quarter. , does this mean they should hold onto that 43 billion . Do not think that it makes sense for anybody to cash in on a low interest rate. You are not doing anything with it. Use it or lose it. Just maybe five to 10 billion . It cannot really liquidate its investment easily, so maybe jack ma could return the favor. A keynote cornerstone investor. Rishaad would they trust him . That is another story entirely. David thank you. Maybe se guidan her these are shares of alibaba earnings nextted year. So 2021, all the way to 2020. Times. About 26 coming up, we are looking. By directorngapore of asiapacific insights. Next it the monday edition of radel of the charts. The first one of the week is coming up. This is bloomberg. Rishaad we are back. Markets reporter. David our bloomberg clients can. Onnect lets kick things off and talk steel with crystal. We often hear as china has the largest steelmaker. From time to time, they also import steel. There is a lot of talk about the economy going to lift off. They kept on building more and more steel mills. Whenever there is a drop in Global Demand, they have no choice but to send their products to china. Im not trying to support anyone here, but the last time this happened was during a time of financial crisis. Are you trying to say about the future . I am not a crystal ball, so i cannot really see into the future, but i think this reflects that Global Demand is really struggling. Go for it. Is about part exploits and china. Guide for thed degree of the pboc easing in the future. Is part prices in china, they have peaked out. U. S. Exports have increased. Put prices have been a main source of inflation after hitting sevenyear high. Even as data accelerated to the inflation could come off. Indicator for where the market is going. This is a really tough one. Second, but itme was very tight. Crystal, thank you so much. It in thatught about time of analysis. That was quite instructive for me. You can revisit those david you can revisit those tides. We had the kospi up. What are we looking at in regards to the futures . , wey time we see positivity could be reliving some of those losses. It is almost 11 00 singapore. I am juliette saly. Rishaad we are entering the morning session. The referendum and a rebuke. An overwhelming win. The first vote since the protest began. Promising to step up the fight in a bid to break the logjam. It has been a major issue for negotiators. Johnson and we hear from that former chancellor. This is Bloomberg Markets. Juliette asian stocks are starting the trading week higher for the second session to try to defuse the trade tensions somewhat. You have the hong kongs hang seng index leading the gains as we see this turnout for the local elections being led by prodemocracy candidate. Nikkei is tracking higher by almost 1 gains. Moves also watching the and other assets and no surprise, we have been seeing money going out of the yen and the treasury. Lets have a look at that board. Really leading gains on this positive mood to start the week. Watching what is happening for the chinese bond markets. A bond sale as early as tomorrow. Rishaad absolutely. Reference. And ondid have a lower close friday. Could be taking some of that back. Suggesting over the last four down, but now we are higher. 2 10 of 1 . Yields. At 10 year we do have gdp data out at the end of this week. That is something the bond market will be looking at closely. Rate for thegrowth Indian Economy, but that would be the least amount of growth that it had since 2013. A bit of food for thought there. Yield there on the 10 year. Threen over the last months. Again, we will be seeing how that growth pattern fits in with what we are seeing in terms of the currency. Breakthrought of a. Lets find out what is going on. China,will begin with which has increased penalties to address one of the main speaking points in the trade war between the u. S. And china. Washington once beijing to crack down and force American Companies to release commercial secrets as a condition of doing business on the mainland. Reduce by they aim to 2022 and plan on making it easier for victims to win compensation. Minister Boris Johnson has launched a conservative party manifesto. The tories will the double digit lead in the most recent opinion polls ahead of the december 12 vote. Johnson will likely win a healthy majority. I want it to be an exciting, productive year of growth. Do you want to find a nightmare on downing street . A coalition of chaos . Neutralts go carbon and corbyn neutral by christmas. Su moving onto the indian rupee, the only emerging asian currency to be weakening this quarter. Growth at amic sixyear low. It slumped from a highend july. A credit crunch among shadow banks. Been cut toook has negative. And Michael Bloomberg is joining the crowded race for the white house, entering the Democratic Campaign for president with a andof moderate policies experience in business and government. Trump is asident threat to the u. S. And its values. Saying america cannot afford anymore. Michael bloomberg is the founder bloomberg lp. Global news 24 hours a day on tictoc and twitter powered by 2700 analysts and journalists. Im su and this is bloomberg. Juliette hong kong voters handed a victory as a number of people cast ballots. Over 70 voted. Whoever is governing, carrie lam , they have to have second thoughts about meeting some of the aspirations of our people, which is actually not that outrageous. Now they billy have to respond. At least the government has responded and there is demand for universal suffrage. They are listening. The people have spoken through a rational process, and it has worked. We would like to see the streets going back to peace. We would like to use the institutions, the process to renegotiate with the government now. Should the government reject that, should they object all of guarantee thatn we will not return to street violence. Out and about with the latest. What is the count looking like . Tell us about the significance. Media news supporting the prodemocracy candidates taking 238 seats. Ae the election Sweeping Change across the board here in terms of the District Council. We are still waiting for the final result because some of the accounts are ongoing. Lawmakers, key political figures across the board saying the government needs to listen to what the public is paying in this vote. Firmly in the governments court. Now, of course, it is hard. It has changed. The voters about political reform and hong kongs economy. They can really pitch themselves if youparty to vote for are antiviolence. It was not enough. They were looking for more than that. To hear i we expecting a response from carrie lam . She will hold her regular tuesday press conference. We expect that we will be hearing some words from her at that time. We will know exactly where the numbers lie. This deeply politicized environment, we have politicians , lawmakers from both sides calling for them to listen. What can carry them do . Also from the democratic side, how can they organize in valves to really make changes to the political situation in hong kong . How the Legislative Council is made up and the election committee, which was selected. These are two other areas that can be impacted. Roslyn chen, thank you. Lets get some perspective from our guest here in singapore. We know that hong kong has entered into recession. It is a concern between the prodemocracy camp and from china camp. How are you viewing the economy . It is challenging. We are nowhere close to the end of the recession. There is also a longerterm implication. The status of business and finance will suffer over the coming years because of the unrest. Juliette they actually maintained their amazing saying it seems a viable financial hub. What are you expecting in the data that say that we will see more downturn because of exports do this week. A lot ofk we will see weakness in trade related activity. It is not only Hong Kong Related across the region. Of course, domestic demand is suffering because of lower tourism and so on. Does hong kong become part of your investment thinking . Kong andtely, for hong the agespecific region as a whole. A lot depends on what happens on the trade front. Domestically, policymakers are trying to influence the outlook. A lot demand depends on the u. S. China trade relationship. Absolutely. If that becomes law, i suppose that will get a rebuke from china. We could see an escalation in this war between the two sides. Does that escalate further . What do you make of this move from beijing regarding intellectual property over the weekend . Absolutely. If the bill is signed, it could damage the already fragile elation shipped between the u. S. And china, given that the bill is seen to support hong kongs democratic aspiration. Wouldhas said that it retaliate if the u. S. Interferes in chinas domestic affairs. That is a major risk out there, they havesame time intellectual property issues. First signs inhe a while of Real Progress on the trade front. I would be skeptical about the this is an, but actual step forward. Juliette stay with us. We want to get more of your thoughts on the region. Still ahead, bloombergs exclusive with the former vice minister of commerce. Andsituation in hong kong reform at the wto. Rishaad next, the decision for the bank of korea among key economic events. We will ask, what to expect . This is bloomberg. Rishaad lets have a look at some of these key Economic Data releases. Tuesday, we have the latest trade numbers. Industrial profits on wednesday ana string coming out of japan, including retail sales. , gdp data over in india. The head ofiette i want to get some your thoughts on this data. What we are seeing in terms of china. I totally agree. Chinese economy is under significant pressure and is reflected in profits. There is pressure in the industry. Factor. Other what can authorities do . But dore targeted moves, you expect a bigger fiscal support . I think we will see a bunch of different measures coming up. But itiscal stimulus, would be on the fiscal side and experts related industries. On the monetary side, we see cut, gradual. The mixture i once asked a question. Terms ofwe seeing in it working so far . Difficult to say how the stimulus has worked, given that the economy is facing pressures coming from the last and china trade conflict. I think they have helped to stabilize the economy. Rishaad another body that he stimulus is that of india. It would take growth down to its lowest levels since 2013. How are you looking at what is going on . It does seem like there is a big pullback in growth. Absolutely. The Indian Economy is in a very difficult situation. There is weakness in the economy. Urban and rural demand has softened. On the business side, we see that weaker confidence has translated to much weaker investment activities. , it is aternal side very complex downward pressure on the economy. Juliette we are seeing efforts to prop up the economy. The slowdown is deepening on the chart on my terminal, showing the impact of economic growth. That . An we do to boost see furthere will monetary stimulus and physical what fiscal measures. Need to see more Structural Reforms for fundamental issues in the Indian Economy. Juliette we are looking towards the bank of korea because this is another economy that has been much impacted by the effects of the trade war. What do you expect from the bank of korea . Points cut by 25 basis and again in october. I think now, they will take their time to assess the impact of those rate cut and see where the economy goes from here, but for easing. Ss room i did not expect that to happen this year, that may be in early 2020. Rishaad it is particularly tough for export demand dependent economies. Absolutely. Weakness can potentially spread to the domestic side of the economy, so we have seen the private Sector Investment has weekend weakened. Consumers have become more cautious. We need to see more public spending next year, in order to support the economy. Rishaad great talking to you. Head of asia pacific economics for us. The chinese form on mr. Hazmat commenting. As been he is saying we should wait for a final result in the election, going on to say that whatever ofpened, hong kong is part china. Any attempt to create chaos in hong kong will not succeed. That is the Chinese Foreign putting that out. We have much more to come on the way. A market check as well. This is bloomberg. Rishaad a quick look at the business flash headlines. Of retail the numbers upns up to 50 million to 50 million. Raisere expected to proceeds of 90 billion hong kong dollars to the listing with trading beginning tuesday. Buying an australian business. Products. Juice her fort formula make 1 billion. Pursuing beo pursuing shares earned by the start up. It will bring a bid for as much as 3 billion. On the . 19 apiece. There have been no talks about changing the offer. It is time for stock of the hour. This is on property ipo plans. Term positive. A big jump today, almost 7 in sydney. Caltech saying it is planning up to a 49 interest. Of 4. 5sumes a rate percent on similar traded ranges. To maintain a majority interest in the company ipo and will enter longterm lease deals over the year. At the function on the bloomberg, pretty positive as well. Is seen as, the deal finishing up in the third term. They have been named as Financial Advisors for the property ipo. Andcan get clumps of this glimpse of this when you look at the msci asiapacific index. Quickly a look at markets as we go towards the lunch break. Seeing some of these in the red. 9 . By upsidearginally to the as we do get this offer coming through from beijing with the a little bit lower between beijing and washington, by offering stiffer penalties for ip of violation. That is what we have at the moment. 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 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. 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 400 a year. And now get 250 off google pixel 4 during Xfinity Mobile beyond black friday. Thats simple. Easy. Awesome. Click, call or visit a store today. Juliette it is almost 11 30 in singapore. Hearing that refining margins has slid into a fresh record low according to analytics data compiled. They have been on track for the lowest Monthly Average on record. Now to first word headlines with su keenan. Taking an early lead in the elections. The early cap suggests a landslide victory for the group. Voters cast ballots in the first opportunity to comment after months of protests. Sticking with china. Proved the Biggest Destabilizing element in hong kong. The News Agency Says american politicians are risking pushing the city into a more dangerous at this as it uses the hong kong card to contain chinas growth. President trump signing into law annual reviews of the trading status with u. S. Prime minister Benjamin Netanyahu is facing a leadership challenge from within his own party. Prosecutor amid accusations of corruption. The newspaper says they will hold a primary election within the next week. Israel is still without a government after two inconclusive elections. And the sumatran rhinoceros has become extinct in malaysia. The last of its species died of cancer while living in captivity. It is the smallest of the five rhinoceros species and once roamed throughout asia. Drastically shrank due to the and poaching. There are only about 80 of the inmals left, mostly living the wild, in indonesia. Global news 24 hours a day on tictoc and twitter powered by 2700 analysts and journalists. Im su keenan and this is bloomberg. This is what we have. Kong. Hong perhaps taking back some of the losses that we had during the week. The nikkei just coming back from the lunch break. The nfci was waving some of its indices. Sydney, a little depressed with what is going on with the banks there, adding a little bit of dragon to that potential benchmark. Just minutes away from the start of the session down there in mumbai. Indicating that on the futures. Against thetronger dollar, but very little. One of the few currencies that depreciated since july. The indian yields are unmoved at the moment. These Market Participants will be looking to friday and we could be seeing growth for the economy going down to levels that we have not seen since the first three months of 2013. Beijing is signaling an increased willingness to strike an initial trade deal. One former senior policymaker told us that demand continues to be that tariffs be rolled back. I think the trade war began with additional tariffs, so i believe we should remove all tariffs. If President Trump signs off on the bill to support hong kongs protesters, with that derailed the trade talks . Could they look past that . Will notp the u. S. Intervene in chinas mystic affairs. We hope President Trump does not sign the bill because it does not reflect reality in hong kong and it is no good for the future of hong kong and its people. Focus changes to phase one and three. Prepared to make changes to its industrial policy and cut back on state subsidies as part of those negotiations . I think it will prepared to e happen and china will keep accelerating and opening up. I think this is possible. We hope that we will have new opening up measures, optimizing the investment environment, as well as Foreign Investment law and market access. From those who renegotiated the entry into the wto. Of said the china system state capitalism, the role of the party, intellectual property theft, massive state subsidies, that those issues would remain toblems, and she pointed those. They are still major issues with china. A good friend. I think the major problem is that it cannot keep pace with the time. Of course, in terms of , i think we should remove any unreasonable subsidy when we conduct market reform and promote market economy. Are we looking at the low 6 growth in 2020 . I personally believe in general, next years gdp will be better than this year. Chinas economy will be better than this year. There gdp growth will be slow for the first half of the year, but it will still grow in the second half of the year. Juliette that was chinas former vice minister of commerce speaking at the Community Forum in beijing. Has released its latest report looking into asian insurance investment trends. The expansion and insurance asset is creating new opportunities for Asset Managers in the region. Great to have you with us. There is an increase in passive investment. There are a lot of motivations. First about, we are seeing this trend globally, for longer. It is the top of everyones agenda. What areas are they looking at . Side itself,sive one of the biggest part of that space is fixed investment over 8 of interest. Instruments makes it a lot easier for them to allocate. Again we go back to lower yields. Insurance will have to move to go into alternatives. Investmentir horizons are typically on a longerterm basis. I just want to get your markets compelling argument, as to how much it can grow ahead. Prospects idea of the for them getting put under the blanket of insurance. There are a lot of growth factors. Asia does not have the strong since as many other european countries. Are three big items, interest for protection. Mind, there are very strong growth factors and motivations. Juliette there is a lot of focus on esg as an alternative investment. Realizeood thing, we do that they are still in their infancy. Moreve definitely seen talk and no action. To actually help investors make it easier to treat securities as well. It could be very forthcoming in their codes of conduct. The future is very positive for them. Rishaad tell us about how there has been outsourcing and how they are key. In terms of their outsourcing habit, we have sought out the in a fixed income toce, given that they tend invest in house itself. I think that the changes we are , were definitely seeing seekinsurance has to expertise to manage assets. Players they can be big in private equity, cant they . They definitely can be. We are seeing them allocate, given that they are more attractive. Time,g in for a longer the way it is a good match. I think we also are seeing increased concerns about over valuations. Some of the quiddity transparency that private equity actually enter into. Seeing thatitely they are looking to allocate private equity and becoming more cautious. Juliette thank you for joining us and talking through your finding. Coming up, people had to mumbai as Indian Markets we open. Will they open with by . This is bloomberg. Juliette you are watching Bloomberg Markets asia. Former british chancellor says the worst outcome in the upcoming general election would be a slim majority for the conservative party. Speaking exclusively to bloomberg. Through theho went 2017 general election, what has littled, they will be a bit wary about predicting the outcome. It looks for sure that the conservatives will be the biggest party. The bigger the majority, the more watereddown brexit is . Not necessarily. The bigger the majority, the more personal authority the Prime Minister will have. The more he will be able to use flexibility to operate in the way he thinks is in the best interest of the country. Personally, i hope that you would use that authority to deliver brexit and do it quickly. That is on everybodys agenda. To make sure that we invest the time, energy and effort that is needed to get the best possible trade deal with the union, so that we have a good, solid relationship going forward. Personality or Spending Plans . It will be all three. That will be the challenge of using a general election to resolve a single issue challenge and problem. Some people will be looking at the wider questions. So far, from the debate both major parties think that public spending and plans on public spending will be a major part of what determines the election here. Can they afford those plans . It depends on what happens with the economy. Right, and weit have solid economic growth, we get a brexit balance and a deal with the end, yes, it will be possible to accommodate some increase in public spending. Corbyns policies would undermine confidence and it would undermine investment. Bas be ar splitting . The hardliners speaking exclusively to bloomberg in beijing. And he has markets have just opened for the week. It looks like they are joining in the buying that we are seeing across region. That is right. Were seeing the trade across the market. We opened in the positive territory. Currently sitting at about 32 points. Also seeing gains at about 100 points. Banking stocks have been in focus. Outperforming the few days. Up about 52 points. The index is seeing gains of about 400 . Have the offer on thursday and there could be some volatility in the market. On gdp numbers come out friday. Rishaad tell us about the stocks that you are keeping an eye on. Think infrastructure is the biggest gain or at the moment. Been inom stocks have focus in the recent past. Stocks have been given positive returns. They had increase the target from an earlier target and in have filed fory a petition. , theyositive takeaway have increased on the back of increases. Of 3 . Morgan stanley has agreed to the target price. Idb has opened with gains of 3 . Asset management business and the stocks are reacting positively to that. Thank you, as always. Alibabas much anticipated listing. This is bloomberg. Juliette a quick check of the latest flash headlines. Pressure continues to build. It would have the power to disqualify executors. Widespread breaches. Failing with transactions. Saudi aramco has taken its ipo campaign to dubai in a bid to boost interest in the deal. Salecome after the share attracted interest from foreigners. The struggle to raise support outside of saudi arabia. Itsa with demand for kickstart despite a disastrous launch event. 2000 people have cited interest in the truck. Tesla says it aims to start for with aion in late 2021 more powerful model do a year later. Agreed to buy drugmaker medicines. A promising cholesterol treatment and adding to a string of acquisitions. Share. Ng 85 a bloomberg reported the company was in talks. Rishaad tuesday will see one of the most anticipated listings of the year. Coming to see alibaba and trading closer to home. Alibaba listing with regards to that. Why the listing in hong kong . Why do it now . As to why they are doing it in hong kong, they wanted to do it in 2014. That was thwarted by the fact , in shares were not allowed they were so stunned by the decision to go to new york and decided to change its listing rule. It paved the way for alibaba to list closer to home. It gives mainland investors a chance for shares in one of the big tech names. Now, it is not a great time, but shares have risen by about 6 this year. That was the benchmark for the pricing. That is not bad. It is such a wellknown name, that it can get away with listing at this time. A great time for hong kong. What does it mean overall that we will see this happening in hong kong . Great win for the exchange. And company can still come make money here. Asiastill one of leading hubs. A wina is almost handing with this listing. And companies can come here move forward with their plans. Rishaad tell me about the demand that we have seen. People whomany cannot get enough. What about the retail portion . Wel us about how many times have seen this subscribed . The retail portion was increased. It was increased because of such high demand from investors. They are quite a fixture in the market. It is quite a unique factor here. The retail portion was oversubscribed 40 times. Part was institutional multiple times oversubscribed, so demand was definitely high. Also, the chance for chinese names to be able to hold a name like alibaba. Rishaad thank you so much. Equity capital is market reporter here at bloomberg. 170 six hong kong dollars apiece. This is what we have in store for you this week. A speech in rhode island. His first speech since meeting with President Trump last week. We have been discussing the secondary listing making an trade debut. Ednesday, a revised meeting we have the u. S. Trading week being interrupted by the thanksgiving holiday followed by black friday. Also the bank of korea decision and indias Second Quarter gdp figures. Is it fromhat Bloomberg Markets asia. We have Bloomberg Markets daybreak middle east coming up, next, live from dubai and hong kong. This is bloomberg. When you move homes, you move more than just yourself. Thats why xfinity has made taking your internet and tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Manus this is bloomberg daybreak asia laced. Middle east. Hong kongs prodemocracy candidates produce an overwhelming win in District Council elections, the first vote protests began. Manus china promises to step up the fight against ip theft in a bid to break the trade war logjam. It has been a major issue for u. S. Negotiators. Boris johnson launches a safety first manifesto for next months u. K. Elections. He took to consolidate an apparent lead in the polls. Manus saudi aramco pitches itself in dubai in a bid to as