Tiffany. Stock has been rising in the green market ahead of the open. Paul lets get a check on how were doing on the markets at the moment. Weve had new zealand trading for a little while now. Looking higher by about, there you go, about a third of 1 giving up some of the earlier gains. We saw a very good trading major in the u. S. , all ndexes higher, small caps as well. 1 . Australia, up. 1 of bear in mind with australia, we here. Staggered open still performing well after up 2. 5 . s gains westpac. Ting for brian, the day, c. E. O. Buckling to what analysts saw as the inevitable and down in the wake of these Money Laundering llegations from one of the countrys regulators, 23 million separate breaches. His sword and n bringing forward his retirement 20192020 st half of as well. Trading t of chicago flat, similar story despite i ns that we have seen as mentioned fueled by trade shery. M, shery the u. S. Dollar strengthening broadly on the trajectory d the next year will be a result of competing forces global and according to our next guest. He joins us with his currency outlook. Great to have you with us. The u. S. Dollar has been pretty year, but we have decent Global Growth, u. S. Does is stronger, what that mean . Zach you have the conflicting dollar. N the normally when Global Markets are doing well, markets are up, the tends to weaken. That reflects the dollars international role. Reflects how the u. S. Economy is doing relative to its peers. Here we are a bit more confident on how the u. S. Is doing versus china and europe. Back e get back to the half of 2020, they could start picking up. Quite a bit s stronger. Were not ready to call a big bearish dollar trend just yet. Shery we talk about the uropean economy, we talk about brexit sterling outperforming today. Tory win ow much of a is priced in . Cycles around t the polling, there is plenty of uncertainty. Around current levels and you approach the december 12 election day, sterling will higher. What you saw today was a little bit more confidence and the polling was basically stable and investors continuing to nibble back into u. K. Assets. That continues as long as election looks like its heading in an ok direction. Of ink that there is plenty uncertainty around the outcome. Zach, around the polling is significant because teresa may was expected to win a big didnt. And brexit was never meant to win the referendum and it did. You consider a lot of traders still sitting on the sidelines when it comes to the pound . Zach thats right. Everyone has their charts out polling errors vote, ar ahead of a u. K. And at current levels, things the pretty good for conservatives and therefore pretty good for the pound. Couple of weeks to go here and as time goes on f the polling is basically stable, you will see rising people ce and more willing to get long for the pound. A lot of people are sitting on the sidelines. Paul if we pull things back to say thatttle more, you you recommend being long on the yuan, whats the case there . Zach its about the prospect of rollback in the u. S. There is a lot of uncertainty here around what the trump to nistration is likely achieve with the current phase one negotiations with china, but he press reporting from bloomberg and others suggest that some tariff rollback is at least on the table. Think that the yuan has not really reflected that just yet. Tradeweighted yuan or the basket has moved up only despite a fair amount of good news on tariff. Of et confirmation on some the tariffs, the yuan could have sharp but shortlived period of into the first quarters. One our favorite trades heading q1. Shery the pact between the u. S. And china . Zach not much, requests from the Trump Administration for disclosures in the south korea trade deal and we think language along those lines which for beijing to be a little bit more forthcoming when its intervening in currency markets. Not what is driving the yuan at the moment. We dont think its a major the trade talks. Shery what loans are you right now and out of where . Ach our favorite long is in indonesia. The currency is benefiting from a growth backdrop from high relative to a lot of peers and Good Governance out current administration. So long indonesia and our avorite in the region is taiwan. Out of all currencies globally the ding the euro, its lowest. Its the best funder from a straight yield standpoint. Not a uniformly held view that its the best funder yield,y, its the lowest we think some of the things that taiwan ing around the dollar are going to stabilize. You want it as your short, your funder. Funded by onesia taiwan is one of our favorite particularlyly and in asia. To get your thoughts. Despite the best evidence of the of thailand, is this sustainable, and where does this end . In more currency appreciation. Unfortunately for the central bank. Thailand has a good problem to have. They have a Competitive Exchange rate and very strong currently for that. Rplus the problem is unlike other countries in the region that current account urpluses, they are not able to to cle the inflows or send other markets. That keeps it very strong. We think that the central bank to be able to stop that over the next couple of looking for were more appreciation for that reason. Zach, coheads of global goldman sachs, thanks for joining us. Bloomberg terminal, potential merger news from australia, there is a proposal cash end share offer, caltex. Er share for this Canadian Company is it runs Convenience Stores and fuel Stores Across canada, of course, this is caltexs business in australia as well. Confirms that approach at 34. 50 per share and says the is considering it. Lets check in on the news now. Thanks, paul, former White House Council don mcgann has ordered by a judge to answer questions about possible obstruction of justice by a ruling that , could threaten the president impeachment inquiry. The lawyer to spurn the subpoena in may. Says it continues to her rt carrie lamb and government despite the victory candidates. Cracy summoned strong interference in hong kong. Hey accuse washington of supporting violence. Market in europe after the license to operate in for the second time. Failed to er has adequate verify drivers identities and safeguard the passengers. 14,000 trips involve drivers who they said they were. New businesses, you got to by the laws and what is policies mean that safety has been compromised. 24 hours a day and on tictoc on twitter. Is bloomberg. Paul. Paul all right, thanks very much. Lets check in on west pac after c. E. O. Has decided to resign. 1 , this does reverse a week of declines where we see pac shares lose about 8 of their value over the previous a k and getting close to sevenyear low after this news laundering d monday laws. Committing the biggest in australian history. Developments. Test emily, it really was a case of if that brian hartser isnt it . Emily he attempted to tough it out. T was clear his possible was untenable from the start. He knewy whether or not about these things, the fact that he was at the helm during when many of the violations took place and as he aid in his statement today, ultimately the chief executive officer is responsible. Goes on to the recovery stage, who is westpac to get to the task to get re the reputation and to what allowed the breaches to occur. Going to investors like this . Emily going to like it . Think they think its inevitable. As the chairman said today in his statement that he would retirement, his this decision came out of Major Institution investors and shareholders, many have been telling us privately, to speak publicly, they are horrified by the scare deeply reaches and disturbed about the allegations from the regulators. Investors, you know, hey have taken pretty Decisive Action and see how the bank restores itself from there. Few its been a horror years for the Banking Industry here in australia, i believe c. E. O. Of the one big four left standing. What sort of image does this do image of the industry here . Emily every time i come on the how paul, we talk about really the reputation of the australian Banking Industry get much worse. Something seems to happen to change that view. Year, horror orror three years, a Royal Commission ambassador, from widespread misconduct, weve had executive officers from National Bank of australia among various scandals. It keeps getting worse. Banking was lauded for so long, it got through the inancial crisis with barely a scratch and everything was flying high, a very sharp fall from grace. Emily, thanks for joining us. We have westpac shares higher by in early trade. Still to come, a deals in the Charles Schwab confirmed a 26 billion move for ameritrade. We have the details. Shery up next, alibaba make awaited trading debut, piece of the citys largest share sale in nearly a decade. This is bloomberg. Paul this is day break asia, sydney. L allen in shery im shery ahn in new york. Long awaiting listing comes from the long in the city, as china pushes company closer to home. Big day for hong kong, sophie. Ophie also a big day for alibaba, 20 years on from the company. Here in hong kong given that the 12. 9 million if an option is exercised. 20 is less than the billion that was targeted, the biggest listing in hong kong in decade, the city during the political eruptions. Ore tech unicorns could be enticed here, allowing shares pave the way for companies to be eligible for in the housing index. Horizon, alibaba stock e added to the connect and they are ready, the first time on shore investors a third of buyers for the offering. Sophie, a huge amount of interest, the retail portion times. Bed 42 how are shares expected to do on debut . Ading sophie shares rose in the gray market, a solid debut for here in hong kong. On the ant to get in action as you pointed out, there as oversubscription of 43 times. That triggered a back and from d the retail trend 10 from 2. 5 of the total deal. 176,000, a d at with a 18 a. D. R. S ratio. That may cap the upside this kickoffand ahead of the in hong kong, they did climb to narrow nd keeping a 186 hong th a. D. R. S kong per share. Raging from 180 to 280 with the average at 225. Lot of attention will be on and may rich alibaba do with the funds as it boosts 44 ar chest from 43 to billion. A lot of focus on how the money ill be put to work, paul, investing in new hightech or on the off rivals mainland. Paul thank you very much. Alibabas more on hong kong listing throughout the day. Us in the next hour will be ew sullivan with us. Mega share sale is a boon for hong kong. Are weighing other Financial Hubs, singapore is another choice. Samuel says he is not seeing significant inflows from hong kong just yet. The protests have affected business. Actually the amount of capital and flow into singapore not noticeableis yet. There are inquiry, there are we do not see any noticeable flowality this staying. Youre not seeing any Major Investments from hong kong . Samuel correct, i dont see any inflows into singapore. Contingency of plans do they have in place . We do commercial banking business, treasury business. N terms of the hong kong domestic business, we are pretty ell contained in terms of liquidity and things like that. We are not that worried. I terms of future outlook, think hong kong domestic investment will probably take a few years to come back to the revious level, the most important thing is we rely on the flow business. Not low business were talking about wild flow per se but trade flow from china into parts of into other the world. That may skip hong kong for a while and come directly. Sense, therefore, ingapore may benefit as a result of the restructuring of the flow, the supply chain shift not focusing on the well flow per se. You wouldnt change the in hong kong . Egy samuel no, we think that hong kong is an event. Does come and it will go at a certain point in time. Event, all parties, all stakeholders will probably more with honger kong. That will take a couple of years, one to two years time to hong kong. Medium term outlook. Hong kong saying it still remains a Financial Hub, you agree with that . Yes, the ingredients of hong kong continues to be there. That hong kong people want to do business, they have hong kongs role is to serve entire asia continues to be there. That is difficult to be replicated in other countries to take over the role of hong kong. You were talking about the greater bay area being a focus f business growth, profitability. Has whats happened in hong kong impact on that . Discussed said as we last time that the area strategy, our earnings from that particular region half a billion dollars, we have plans in five years time, the earnings from going to grow from half a billion to 1 billion. That. Still on track on remember that is a flow business business. A domestic we are continuing to position rivern that region in the delta region, in hong kong, in flow between ty asia and hong kong and northern part of china. In hong operty market kong seems to be fairly resilient despite what is city . Ning in the samuel the prices have not come down. Private ecause the family in hong kong, the leverage is not high and they ability to hold on to the property without doing any fire sale. Think that situation is going to continue for a while. Leverage low, liquidity there. Ues to be peoples ability to serve continues to be there. Peoples willingness to buy at his moment has reduced and prices have come down. You can get a roundup of the stories you need to know to going in day break. Bloomberg subscribers on your and available on mobile in the bloomberg anywhere app. Customize so you can news on the industries and apps that you care about. This is bloomberg. Paul lets get a check of the latest business flash headlines. Ogle says it is fired four employees for what it terms violations of data the company has written to all staff. The situation may escalate staff between management and activist workers who have been protesting for months on a range of issues. It includes googles work with the luke perry and claims of sexualharassment. Shery prospects in the u. K. Have dimmed after the bts open Ridge Division is evaluating other vendors alongside huawei and nokia as they prepare to connect millions of British Homes to optic fiber. Based something it denies. Unit of imaxnese is putting its money on the mainland and shifting away from dependence on hollywood lot busters. Chinese linkage films have been andof five biggest hits 2019. In 2019. China is forecast to overtake the u. S. As the worlds top film market in 2020. Plenty more to come. Goobers European Business may be under threat. Why london has decided to hit the brakes. We will have that story and a checkup of the markets and a wrap up on todays news. Stay with us. This is bloomberg. Paul this is daybreak asia. Former white House Counsel Donald Mcgann has been ordered by a judge to testify before a congressional committee, looking at possible obstruction of justice. Is coveredon mcgann by president ial immunity. Why is this significant . A number offfect Administration Officials whose testimony has been sought by congress. The judge said these officials do not have blanket immunity and that the white house cannot claim any sort of privilege to prevent them from testifying. Importantly, the judge did say they can invoke executive privilege, which covers confidential advice giving between the president and his aides. It would not affect National Security matters. It would require at each stage for them to declare precisely what reasons they are invoking the privilege for it. It would be a major defeat for the administration and the claim havenone of his aides testify before congress. Ais will probably be ppealed, but his lawyer said he is ready to comply. The department of justice will be handling the case. Testimony fromct someone like former National Security advisor john bolton, who was seen as a key player in some of the events surrounding the president actions with ukraine. Is key to don mcgann the investigation of whether the president tried to obstruct the Robert Mueller probe. Mentioned, the president was keen to see don mcgann protected by immunity. The democrats were equally keen to have him testify. What is he now that will be so interesting . Figure ina central the Robert Mueller report detailing instances where the president tried to block or otherwise impede the investigation that Robert Mueller was undertaking to investigate the russian interference in the 2016 election and whether the Trump Campaign may have worked with or in concert with the russian disinformation campaign. Pieces ofe of the key the impeachment inquiry, but again, the other affect the other effect may be on some other witnesses such as bolton, secretary of state mike pompeo and others. They could fill in a few of the blanks that the democrats say they have been unable to get some of the first 10 witnesses. One of the the firsthand witnesses. Some of the complaints from republicans have been the democrats have relied in some cases on secondhand testimony. This would remove that and get much closer to the center of all of this. Direct knowledge and interaction with the president. Editor joeess sobczyk in washington. Let get a check of what is going on in the markets. A pretty good lead in from the u. S. Equity markets. Most markets higher. The russell 2000 small caps leading the way. In australia i, we are higher by half a percent. Nikkei futures trading out of chicago looking higher. Inouple of stocks to watch australia. We are waiting for tout for cal text to start trading. Those two companies in the same business. Cal text confirming the takeover bids, which it has yet to make a decision on. Westpac gaining 1. 3 . The day after the news the ceo is stepping down. For more on that story and the rest of the first word news, lets get over to reddick up. Westpac will be in focus over the scandal over a ledge and Money Laundering and telefinancing. The ceo has now reversed his will resignstay and next week. He said he would personally lead an investigation after the lender was accused of breaching financial laws. He will be succeeded by the cfo, peter king. The International Monetary fund is calling on the japanese government to work more closely with the bank of japan as it cut its 2019 growth forecast for the third time this year. It gave the green light to Prime Minister shinzo abes spending package. It is also urging more ambitious structural reforms. We believe it is appropriate for the bank of japan to have a target that has proven to be helpful, and while not yet is ed, the direction the direction of inflation has been upward. Importantly, deflation is a story of the past. Chinas ban on travel to taiwan has led to a sharp decline in tourism arrivals. The number of mainlanders traveling to the island plunged more than 52 in october following an earlier dip in september. Last months fall was the biggest since 2008. Chinese nationals are still allowed into the island on tour groups. Itssports has sold inventory of super bowl ads with the price of a 32nd spot going for as much as 5. 6 million. Fox notes the restoration of healthy tv ratings and says the nfl continues to be the most powerful media platform in sports. Super bowl 54 will be played in miami. It is the mostwatched event of the year in the u. S. Global news, 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Paul thanks very much. Ubers road ahead in london is looking bumpy. The Transit Authority is refusing to grant the ridehailer a new license. And key for i am really keen on lenton being a hotbed for innovation. Policieslear is ubers the safety has been compromised. Wonder, aboute to the safety concerns being leveled considering london is the home of the unregulated mini cabinet industry. Anyone who has been to london im sure has an anecdote about that. Why is uber being targeted . Today marks the second time in as many years that londons Transportation Authority has denied over the ability to operate their Bloomberg Markets balance of power bloomberg re. Kets balance of power which they have worked to comply with and improve. This time, it is a little bit different. It stems from a bit of information that we were shared with the Transportation Authority in may, revealing that 43 drivers of 43 drivers had posed as someone else. Theyd uploaded their photos driverser a licensed account and operating as them. Aboutdrivers completed 14,000 rides. 43 drivers at a 45,000 operating in the city. It was enough for the Transportation Authority to declare it again for the second time that uber was not fit and proper to operate within the city. It is still operating. It intends to continue to do so while it is appealing the decision. Shery london looks to be one of the Success Stories for ubers overseas expansion. How important is this market and does it have implications for other countries . It was one of the first markets uber expanded to. It was considered by many to be a success story. Just behind rio, it was the largest market outside of the united states. L. A. , san the rio, francisco, those contribute a quarter of all of the growth revenue bookings. Uberis a big deal for potential he in terms of reputational stain. Ofpotentially in terms reputational stain. The question has been leading up as to whether this problem is localized to london or whether it is in other markets as well. Hery thank you the Bloomberg Technology reporter joining us. It is official, and it is a game changer. To bys schwab has agreed Td Ameritrade in a 26 billion deal that promises to reshape the Online Brokerage industry. Su keenan has the story. How important is this . Su very important. Schwab shook things up when it decided to get rid of fees. Become as combining to five trillion dollar behemoth. Lets look at how stocks reacted to the industry. Notice that competitors like e trade and Interactive Broker that would normally be going up against a bigger because thereose is a lot of speculation that other combinations will occur. E trade might be eight target. Lets take a look at the way ameritrade and schwab shut up and itll last and schwab shut up in the last fight and the last five days. Valued atdeals were 26 billion. Lets also consider the fact this mega firm will change the industry in the fact that they are going to be able to offer size. Also, schwab was the original Online Broker in the u. S. The combined company is going to move its headquarters to texas. Many are questioning how the deal will go down and impact the rest of the consolidation that is expected. Tell us about some of these antitrust concerns and the pressure of the online industry. Su lets talk about the pressure. Ofyou look at the valuations the Online Brokers, most of them have been under a lot of pressure. Was a lowe here, this for the decade, right about when schwab cut the fees. Valuation beginning to shoot back up on this merger speculation for the rest of the industry. Thats take a look at some of the other important considerations. That is antitrust. What somewnplaying believe are the considerable risks of an antitrust probe. He mentioned it is 5 trillion in assets. The combination allowed schwab to add 12 million client accounts. In terms of share size, they are the behemoth in the industry. Other firms look at combining. That is going to play out. This will be one of the key questions Going Forward. Right now, investors appear to have embraced the deal. It appears to have lifted all boats in the industry. Shery coming up next, we will discuss the latest developments in the brexit drama with the s per with the former economist, paul sheared. This is bloomberg. Shery this is daybreak asia. Boris johnson faces the biggest crisis of brexit to date if he wins the election and then tries to negotiate a quick and dirty deal with that you by the end of 2020. Lets discuss all of this with Harvard Kennedy School Senior fellow, paul. Lets thank you for joining us. We have the polls projecting Boris Johnson to win a handy majority. As we have seen before, the polls can get it spectacularly wrong in britain. If this does not go to script, can you see a scenario where the u. K. Is back in a big mess . Thatthink there is always possibility. It is a brave person that all things considered, it does look like the most likely toryrio is the johnson led government will regain the majority. That is going to be an important parameter. What was really causing so much thet over the last year was fact that the may government and johnson government was a minority government. If they do get a majority, that will be a game changer in terms of managing the parliamentary process. Time we do spend a lot of dissecting and forecasting the impact of brexit on the u. K. Economy. You make an entry point you is losing the e. U. Is losing its second biggest economy. One of the challenges Going Forward . There are a lot of challenges for the e. U. People look at briggs at in terms of the e. U. Going from 28 to 27 Member States. Her leg economy, it is going from 28 to 10. This is a big it is like going from 28 to 10. Economic and monetary union, the euro is really hobbling on one or two stool four leg did a four legged stool. Trying to put in elements of the banking union. It is still a fair way away from being a banking union. There are still a lot of challenges to find out what the configuration will be. One thing that disappointed me in the process is the lack of Strategic Thinking and leadership at the e. U. Level in terms of trying to fold in the whole brags it process to a longer process of, where does the you end up as a we the e. U. End up as a result of this . Putting a lot of weight on the u. K. And putting leg and making life hard on them rather than looking for winwin outcomes. Paul to that point, do you think the strategy from the e. U. Was to put pressure on the u. K. To serve as a warning to any other Member States that might have been getting ideas about leaving the union . There is certainly an element of that. There is also an element of keeping the option alive that something will happen. There may be a second referendum or a vote that goes in the direction to the effect of the u. K. Remaining. Keeping that option alive. That option does seem to be dying by the day. There is always a narrative that hardballhad to play with the u. K. To make it clear to any other Member States that this would not be a good thing to do. I have a ive always been of the view that that is not the right way to think. Theseect that has all of countries coming together and sharing sovereignty. You have to do that on the basis of mutual gains and benefits rather than a threat to what might happen if you alter the door. If you bolt to the door. Some people are saying she should read he should refocus her lobbying efforts. Perhaps better used in an actual euros on budget instead of trying to get national stimulus from these individual countries. In their review of macro policy, could this be an alternative . Think we are going to hear more and more about the need for fiscal policy, for the fiscal framework to do more of the job. Particularly when growth is dipping. There is room for fiscal policy to step up through the investment channel. As an incoming president is that the euro is a monetary union, but it is not a fiscal union. She does not have one government against which to negotiate. If i were to look into the crystal ball, what we are going to see over the next few years is gradually, the ecb having to step up and compensate. Some would argue they have already been doing this. Compensate for the lack of a fiscal union. Maybe take a broader interpretation of their own mandate. I think the ecb has tended to interpret the mandate very narrowly. If you look at the signed print of the treaty, it is not as narrow as it looks. I would look for the ecb to be acting more as a quasifiscal entity if we do not get the fiscal union. If we get the fiscal union, that takes the pressure off the ecb to fill in the gap. Shery lets talk about the fine print when it comes to fed policy. Have chair powell speaking in rhode island this evening. He has maintained his views that rates are in a good place. He has talked about his outlook and does not have to suffer material reassessment. What could lead to that given we are seeing some progress in the u. S. China trade negotiations . Fed has probably is probably in a waitandsee moment. They have done their three rate cuts. The economy is still in reasonably good shape. The rate cuts have been dictated on a bit of a slowdown in Global Growth and uncertainties around the trade outlook with china in particular. Taking out a little bit of insurance. They will very much be in data mode. What will happen to the economy if it slows up in the first half of the second year. Anys lines any signs the economy is lacking, they will be in with further rate cuts. Shery what about shortterm Interest Rates . Mr. Powell keeps saying the fed has control over them. Seeing fed funds close to policy range. Could we see another tweak in the interest of the reserve coming up soon . I do not think they will tweak the unless they actually make a policy move. Policy essentially the operating variable. What has been happening with the fed Balance Sheet is remarkable. There is Something Like 1. 34 trillion of excess reserve in the u. S. Banking system. Because of the kerfuffle going on in a the repo market and the money market, the fed has had to reverse course and expand its Balance Sheet again. The fed is back to 4 trillion. This is not quantitative easing. The interesting thing is, they do seem to be navigating without a compass in terms of maintaining control of the federal funds rate. In theory, but that many excess reserves, they should not need to be injecting further liquidity into the Banking System. I am not sure even the fed or anybody else understands what the Lasting Impact is on the way that money markets behave as a result of these years of quantitative easing. The fed has never gotten close to unwinding the stock of quantitative easing had pulled up in the great recession. Shery thank you so much. The Harvard Kennedy School Senior fellow. This is bloomberg. Shery you are watching daybreak asia. Lets get a check of the latest business flash headlines. Indias air safety regulator is asking indigo to ground its fleet of airbus 320 planes that lack angina modifications. Say it does not instill confidence. Big rounding order will be instilled until the power units have been replaced. Tol ebay is selling stubhub a european arrival to focus on its main retail site. They proposed a plan to improve ebays performance including the sale of stubhub. Shery you have plenty more coming up on the next hour of daybreak asia. Apartmentsstrategy strategy partner consultants adam hsu discusses this is bloomberg. Good morning. I am paul allen in sydney. Welcome to daybreak asia. Shery i am shery ahn in new york. You are watching daybreak asia. The market will open for trade. Paul our top stories this monday, tuesday a record turnout in Hong Kong Council elections. We have prodemocracy candidates getting bigger gains after we have the street protests beginning last week. We have investors waiting. Alibabas debut in hong kong. Stock rising strongly ahead of tuesdays open. Exclusively to bloomberg as singapore shery lets turn to david ingles for a check on how markets are coming online. Japan and south korea kicking off trading. Are we going to continue to see the rally . You look at the opening level, just on the topix a new 2019re at high. Lets see whether this continues or not. Tailwinds coming out of wall street helping things along. Dollaryen. 109. Flip the boards. Have a look at south korea as well. Within that market, several stocks, which we will talk about later on in the show. Strength being reflected in your currency markets. 25 stronger. Two stocks we are talking about when it comes to australia, we will talk more about those stories. Westech ceo stepping down. Qantas airways announcing it will be cutting roughly 400 jobs before christmas. Asx 200,. 5 for the upset in south korea. Just a reminder last week, we were bumping our head against the 12 level. Might be a valuation concern. We have yet to see earnings rebound substantially to bring that multiple back down. Very quickly, bloomberg dollar index flirting with six week highs. Ignore the 10 year yield. Curve, nines to the Straight Days of flattening. We are steeper right now. Give or take a third of a basis point. If we do get today, that will be number 10. Brent crude trading roughly at twomonth highs here,. 4 . On the agenda as well today, something to take note of, a bond sale in china. We may get the details today. Close of course the big one. Alibaba debuting here in hong kong. Shery shery thank you so much for that. First word news with rick took a group to. Ritika gupta. Ritika regulators revoked its license to operate in london for the second time in three years on safety concerns. The london transportation has failedays uber to verify drivers identities and safeguard service for passengers. Trips involved in drivers who were not who they said they were. Hotbed of innovation for new technologies and new businesses to come but you have to abide by the rules. s policiesar is uber have been compromised. Ritika don mcgann has been ordered to answer questions about possible obstruction of justice by president trump, a ruling that could threaten the president made an impeachment inquiry launched by house democrats. Trump claims mcgann is covered by immunity. China is said to be planning a record sale of sovereign bonds in dollars with an offering potentially worth 6 billion. We are told the ministry of finance is considering 20 years and what would be a Third Straight year of dollar debt issuance. The offering may come as soon as tuesday and would follow chinas first euro bond sale in 15 years. A new report from the peoples bank of china says the lenders can now be considered high risk. The pboc says 586 banks and other financing firms are deemed under threat. At least one unnamed lender earned a d rating. It went bankrupt this year. The sector is becoming a growing concern both at home and abroad. Global news, 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta. This is bloomberg. Thank you. Alibaba makes its trading debut in hong kong in about 1. 5 hours. The listing comes amid equally longrunning popular unrest in the city. As china pushes companies to list closer to home, our Capital Markets reporter is watching this for us. We have seen liquidity being squeezed in hong kong. How much will the alibaba listing, which is huge, affect the markets there . Expectations are quite high for the listing. The stock was rising as much as 5. 1 yesterday, so that is certainly a good sign for the debut today. It squeezed liquidity but its going to, in the long term, it could increase liquidity in hong kong amongst trading. There was huge interest for the Retail Investors and the fact that theres a lot of hope, certainly, that this stock will trade well. This is alibabas homecoming. Paul you mentioned the market demand. What is that telling us for the trading debut . It is telling us that there is demand, that the stock is likely to rise, based on the gray market trading yesterday, and the gain is not all bad. So it is certainly boding well for a positive debut for alibaba , given that it is the largest share sale this year. They will be looking for the good headlines and the good performance on the first day. Giving all the Retail Investors retail given all of the investors that piled into this offering. Paul hong kongs difficulties over recent months have been wellpublicized. How important is this . This is hugely important for hong kong as a listing venue. It is great that they managed to come into the listing here. They successfully raised 11 billion, so not only does it help propel hong kong to the top listingterms of proceeds amongst global exchanges, competing with new york, hong kong lagged behind earlier this year as a bunch of listings were polled. At thets hong kong back top so it could help it win the crown for this year. It shows hong kong is still open for business. It is a great listing venue. It is one of asias leading Financial Hubs. Oury thank you for that, Capital Markets reporter. We have breaking news at the moment. Acquiringidering Hitachi Chemical estate and Hitachi Chemical. We heard from citigroup saying that 900 billion purchase would be very negative under the terms reported, at least by nikkei. We have heard about this potential acquisition of a stake in Hitachi Chemical. They are always considering various options, that nothing has been decided on Hitachi Chemical at this time, however, they are considering acquiring a stake in hitachi chem. We are seeing hitachi hightech raising on this report. We have seen the company now up the most in more than five months, so there rally continues. From ahead, hear more bloombergs exclusive with oncs samuel on the plans Digital Banking and the leadership succession. Paul but before that, we are going to be joined by a Portfolio Manager to talk about the macro issues of the day. She is joining us, next. This is bloomberg. Paul this is daybreak asia. I am paul allen in sydney. Shery i am shery ahn in new york. Msci will rebalance its weightings. Chinese ashares are set for a boost while korean stocks may see ratings decrease. Investors sold out of the kospi every day since the move was announced. Says therter correction has further moved to run for it what does the rebalancing mean it not only for south korea but also other asian markets . Is a stepebalancing in the increase for chinese emhares in the ms ci benchmark index, so what it means is basically when an index a rebalancing the etfs, lot of the funds will make an adjustment at the close of this month. A lot of active funds have already made it prepositioned for this change. By selling the smaller ema em ashares. Soldgn investors have kospi shares over the last 13 sessions, selling 2 billion worth of local shares. That has waiting on the markets. The ms ci overhang is dissipated in the markets will focus continue to focus on the trade any to see if there is interest in the economy. Paul chinese stocks have underperformed their asian peers despite the msci rebalancing to include a shares. What are the concerns and the outlook . Without reporting inflows, they might have performed much worse. The economy is really in a better condition, and making things worse china has a rising inflation through pork prices. Pbockept the chinese hemmed in. It is important. Delivered the rate cuts on november 15th. The pork prices declined. They delivered another rate cut on november 18. It really depends on how much the pboc can ease more to support the economy. The pork price is going to be a crucial diet to the outlook for the pboc stimulus as well as the chinese stock market. Paul thanks so much for joining us. Get you across some news on the bloomberg terminal. We have china, according to reuters, considering replacing its official liaison to hong kong. Also, a report that china is to set up a hong kong Crisis Center in the mainland, so this is really one of the first major responses we have had from china since the District Council elections on the weekend resulted in a resounding victory for prodemocracy candidates. Now, this report from reuters that china is considering replacing its official liaison to hong kong. We will bring you more details on that as we get them. For now, lets bring in the group Portfolio Manager. Return to ato point that she was making. This is the third step of the weight increase we have seen on the msci emerging markets index today. Considering all that has happened in china over the past few months, what does this mean . Here . Re any symbolism is it a vote of confidence in the chinese economy . Is the confidence a little misplaced . Eweighting is a longerterm story. It is about the Global Demand in australia as much as anywhere else. I think, forterm, different investors, holds different amounts of that longerterm potential as well. In terms of the shorterterm nature of what is going on, there has been a lot of confidence and some indicators of the global cycle. Perhaps stabilizing, perhaps bottoming. People wanting to rush into china shares as an expression of that central reflation story, the same as what happened in 2016 and throughout the course of 2017. Personally, i think it is a bit early for that just yet. You are not seeing those signs of stabilization coming across in chinas leading indicators. You are not seeing chinas credit in both reback impulse rebound meaningfully. It could be different, but its too early to call it a recovery just yet. Paul we have important indicators coming up. Manufacturing pmis rebound forecast. What are you expecting to see . Amy a modest rebound is probably likely. For this trend to continue, you some bigger Firm Resolutions on the trade deal, and that still is very elusive at this point in time. Personally, i am of the view that there are more incentives now on both sides to get this trade deal done compared to when the trade talks first fell apart earlier this year at the end of april, beginning of may, because the chinese economy has slowed down much more since then and also in the u. S. , the 2020 election campaign. Typically in the u. S. , you see the incumbent has a much higher chance of winning if he leads into the elections with a rising s p 500. Shery we see the phase i deal. Speculation is it will include a currency packed. What would that mean for the broader markets as we get a more well anchored renminbi . Amy thats a really good point. I think a currency pact is quite likely. As a consensus in the market, i believe, the phase i deal will be reached at some point in time. Maybe too early to say it will happen this year and that parts of that agreement will involve a currency packed. It is talked about earlier in the year as well. The shape of that is likely to be in the form of china allowing trump to succeed somewhat in his dollar policy and that will help the u. S. Economy and also be a anchor. K dollar emerging market assets typically tend to do well. Shery we have seen a report showing china is considering replacing the official liaison to hong kong. We continue to see the hong kong issue play out. We have seen the unrest in the city affect the hang seng index. Could it have broader implications for mainland markets at some point if this continues . Amy of course, and it depends on the degree to which the situation continues to escalate. I think it is interesting, reading between the lines somewhat, that on both sides, even though the hong kong issue is being tied by the media to phase i of the trade deal, the leadership on both sides has been fairly quiet in terms of explicitly linking the two together. The hong kong bill in the u. S. Has passed through the houses and is awaiting the president s signature, but even that may actually happen somewhat under the radar, so to me, it is again another sign reading between the lines that there is more incentive on both sides for some kind of a phase i deal. I think for the Global Economy to really benefit from a true reflation trade, you need to see animal spirits properly returning to the global cycle. You need to see capex restart again and i do not think you will see that without a concerted rollback of tariffs. I think simply pausing tariffs and not allowing them to escalate further from this point is insufficient for that to happen. Shery thank you. Amy xie patrick. A quick check of big stock movers in japan. We are seeing Hitachi Chemicals surging 15 . This after said it was mulling a stake purchase in the company. They said they have not decided on Hitachi Chemical at this time but they are considering acquiring a stake in hitachi chem, sending the stock soaring 16 earlier. Plenty more to come on daybreak asia. This is bloomberg. Shery this is daybreak asia. I am shery ahn in new york. Paul i am paul allen in sydney. Lets check in on westpac now, after news the ceo has agreed to resign. Monday will be his last day. Westpac shares rising on this news, up 1. 7 right now. That brings to an end for Straight Days of declines which saw westpac lose 8 of its value. The lender was accused of committing the biggest violation of financial laws in australian history. Emily cadman has the latest developments. Days, brian looked keen to hang on and repair the damage but he came under all sorts of pressure. When the scale of these breaches occurs, most of it, though not all of it, its very difficult for them not to take responsibility, especially when theres explicit questions for Senior Management in the legal case. Soon ande or is going now, the focus will be on what westpac does to repair itself. This is australias oldest bank. It has a venerable institution. It had a Royal Commission into the industry. Was a stephink this forward. A long road to come. Shery having said that, the long road ahead, do we have any idea who will replace the ceo or what westpac will do to regain Investor Confidence . Time this is the third headhunters have had to conduct a global search for ceos to take over after a scandal in the last two parent five years 2. 5 years, so they must be getting quite good at it now. Many of those have been mentioned for previous jobs. There have been three big searches. A career banker who has not been touched by the scandals. Theres also the inevitable speculation about the likes of mike, of the National Australia bank. Right for a move. There is of course the internal candidates. As we have seen in all the other australian big banks, that is where the real Profit Center is. Of course, eyes are turning to the head of that division at westpac. Paul westpac has agm coming up on december 12 prior to this resignation that was shaping up to be a fairly of the events. What are we expecting now . Emily this resignation today and the statement from the chairman that he will step down will have taken a lot of the heat out of the immediate anger, so i think the agm is no longer going to be as pivotal as we were expecting, even a few hours ago. I think what we still need to have a look at is just how it goes. The rest of the renumeration reports. Has the bank done enough to convince them it can get on with the job of rebuilding the bank . You, emily cadman, thank our finance reported in sydney. We have another right now. A story that we are following. The Tokyo Stock Exchange issuing an alert regarding unclear information for Hitachi Chemical. We heard that they were mulling a state purchasing the company, which is leading to Hitachi Chemical rising 16 . At the same time, they were losing 5 . It is considering acquiring stake whiles considering various options. Nothing has been decided on Hitachi Chemical at this time. The tsc coming out and alerting our little issuing an alert regarding unclear information for Hitachi Chemical. Paul. Paul lets have a quick check of the markets now. We are seeing green across the screen. We have the nikkei higher by better than. 8 . Ae kospi higher as well by fifth of 1 . One of the best performers, westpac, as we mentioned. Higher by 1. 7 on the news the ceo will resign, and he will be dawn on monday. Up next, more from bloombergs exclusive with ocbcs samuel on why the lender is interested in Digital Banking. This is bloomberg. Mberg. December 15 is looming. Wiki u. S. Issues. The news that came out of ip theft. Sideeres effort on each to make this a deal work. Theres been multiple problems in the negotiations. That is what creates real dislocation in the market. Phase i deal. Potential phase three deal. More like phase zero. They priced a lot of hope already. Big issues remain on the table. Phase i as a win is basically saying you are winning by not losing. Of our guestsome talking about basically the same thing markets are fairly sanguine right now. As things stand over the trade deal i will show you a couple of things. Let me start with this. We showed you this one earlier with the Record Number of positions, a Record Number of bets. We have been here before. We want to know what happened in early 2018. I will leave that information there. We will decide what to do with that information. Comes to the currency, here is what is interesting. On dollar offshore china. As we went into the middle of november, which would have captured december 15, that is when the additional tariffs would have actually kicked in. We saw the onemonth move above your three months. Essentially a little bit of positioning and hedging. What happened into overnight is that has come back below. Time,at this point in things are subsiding a little bit. According to mark cranfield, when you look at that, what he is essentially saying is that even if the signing date of phase one is blurry, perhaps we could make the assumption that the worst is behind us. Lets see what happens with that. D as assets are bi well. Trade related currencies are on the way up. The yen being offered up as well. Let me wrap things out very quickly. So lvmh,ur bloomberg, ian tiffany, and the Online Brokers. You have to deal to watch out for. Aboutming that offer at 34 aussie dollars. The big one in japan, Hitachi Chemical, 16 . And showa denko was the other Company Looking at taking a goingin Hitachi Chemical, the opposite way as one would expect. I will leave that here for now. Interesting day for markets ahead of the big one. We are watching paul for alibaba. Paul thanks very much. Lets get over to ritika gupta for a check of the first word headlines. Ritika beijing says it continues to support carrie lam and her government despite the overwhelming victory for prodemocracy candidates and District Council elections. It summoned the u. S. Ambassador to express strong opposition to american interference in hong kong. The statement on the website accuses washington of supporting violence. Chinas imports of u. S. Soybeans fell to the lowest level in three months in october with shipments delayed at mainland ports. Delivery slumped to 1. 1 million tons. Still well above the 67 thousand tons of a year ago. China is buying soybeans from brazil and argentina. It promised to raise imports from the united states. Taiwan ban on travel to but to a sharp decline in digital arrivals in the past two months. The number of mainlanders plunged more than 52 year on year in october following an earlier dip in september. Last months fall was the biggest since 2008 when taiwan relaxed rules on chinese tourists. Chinese nationals are still allowed into the island group. The International Monetary fund is calling on the japanese government to work more closely with the bank of japan as it cut it on a 19 growth forecast for the third time this year. It gave the green light to Prime Ministers shinzo abes planned stimulus package. Fiscal spending to support growth in inflation and urging more ambitious structural reforms. We believe it is appropriate for the bank of japan to have a target that has proven to be helpful and while not yet ofieved, the direction inflation has been upward. Most importantly, deflation is now a story of the past. Ritika global news 24 hours a , day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am reddick agrippa. This is bloomberg. I am ritika gupta. This is bloomberg. Shery thank you. Singapore bank ocbc says it is wellplaced to take on Chinese Technology giants that are looking to join the lion citys Digital Banking market. The ceo spoke exclusively to bloomberg about the ongoing trade war and ocbcs tech investment plans. Singapore needs business globally as well as regionally. It will probably reduce but i think singapore would become even more outgoing in terms of engaging partners in asia to bring the flows to singapore into other places. Emily i wanted to ask you in terms of the Digital Banking space, do you think it is a fair platform affair playing field, if you will, in terms of the traditional players like yourself, like abs, and the new disruptors . A new digital bank will allow you to trial new things. We would like to review it. We are talking to different parties. We have not yet made a final decision as to where we will do or not go. It is attractive to us because it is a way that we can actually test out in this new Digital Economy as to what we could do. What we could do means that how do we engage customers . What are the new channels we can use . We dont have to have the conditional cost space. So it is something we are interested in. How much are you looking at investment in tech . Analysts are saying they are big banks and the traditional banks could be left behind if they do not move ahead of the curve before the new players coming to the market in 2021. For digital banks, the investment is not so much on technology alone, but it is the way that we engage customers with technology, so if you look at the bank, the bank has got investments. The core Banking System. It connects all of the channels, connects all of the products, connects all of the geographies, and connects directly with the customers. If you have a digital bank, it can have a certain segment of customers that appeals to we appeal to them and they appeal to us, but the core Banking System that we need to set up need not be that complex. The investments we make into the technology side, i think it is more on connecting to the customer rather than the court system, which usually is the most expensive one. From that perspective, it is another model we can adopt in a lowercost way. A lowercost way that we can engage the customers and try out new things. What does the succession planning look like . For ocbc, we have internal candidates which are strong candidates who have moved around in different functions, who are able to take over the bank in the event of a need. And along the way, as we continue to expand our business, we look at other regions, other candidates that could be not be part of ocbc yet but could become part of ocbc in the future. Ocbcs ceois speaking to Juliette Saly in singapore. Next, investors are counting down to alibabas local listing debut. Shots from the hong kong stock exchange. We are going to be asking why hong kong and why now . Stay with us. This is bloomberg. Shery this is daybreak asia. I am shery ahn in new york. Paul paul i am paul allen in sydney. Get you across an alert on the bloomberg terminal. We are hearing from the westpac acting ceo designate, peter king, who is stepping into the role vacated today by brian. Peter king saying that he is going to stay on for as long as is needed on the board. Changese big following this investigation into Money Laundering. Onwill be stepping down december 2. The chairman is bringing forward his retirement to the first half of 2020. A longstanding director is not going to be seeking reelection either. A search will be underway for the new ceo. In the meantime, the cfo, peter king, has been with westpac since 2014 and he will be the acting ceo and he says he will stay in that position for as long as needed. We have westpac shares rising today. About one point 8 . The Circuit Breaker needed to bring an end took four days of declines. Alibaba making its trading debut in hong kong in just a few hours or less than that. The longawaited listing coming amid equally longrunning popular unrest in the city. China pushes the company closer to home. Sophie kamaruddin is down at the exchange, watching all of this for us. It is a big day for hong kong. Sophie lots of anticipation. To beg for the gongs rung. Hit the 20po did not billion target, it is still the biggest in the world so far this year and the biggest here in on, in a decade. As much as 12. 9 billion to be raised if the option is exercised. A muchneeded shot in the arm for the Financial Hub given the political uncertainty. Alibaba could pave the way for more tech unicorns to consider hong kong as a listing venue after they introduced rules to allow shares. While alibaba is not yet eligible to join the hang seng index, that could change. Funds positioning from the influx of chinese money. Shery will we see the shares pop at the open . In the shares rose markets, anticipating a solid day blue debut. That triggered a combat mechanism. May rose to a high ahead of the hong kong debut, raising yeartodate gains 38 and keeping a narrow premium to the ipo price of 170 six hong kong dollars. Shares are fully exchangeable so investors may be looking for trading opportunities. Guys, analysts are bullish with the average price targets at 225. There is one hold and 58 buy calls on the stock. Theres a lot of anticipation as to how alibaba will spend its cash file. Will the ceo beyond the acquisition trail . We will speak to rivals on the mainland. Shery joining us from the hong kong exchange, also with us from shanghai, the strategy consultant partner, adam. Great to have you with us. How much sense does this ipo in hong kong make for alibaba . Sorry. Say it again. Shery how much sense does the ipo make for alibaba . I did not get the question. Can you say it again . Sorry. Shery we are seeing alibaba starting to trade in hong kong. Does this make sense for the company . Ok. Alibaba has been growing very fast. If you look at the 2019 annual report, it has grown over 40 . Thebackground years, ecommerce in china has been increasingly competitive. Alibaba has a dominant 50 market share. We see they have been very successful, growing very fast and aggressive. Example and it has been heavily providing track for consumers. With the new funding from this ipo, alibaba literally has more bullets for power to continue to invest in core markets as well as the new will how much goodwill this ipo in hong kong earn alibaba from beijing authorities . I think, generally speaking, its very much commercially driven. If we look at the three strategic pillars alibaba announced recently, its very much focused on globalization, focused on continuing to increase domestic consumption and capturing the value from that, and lastly, soaking up the days for infrastructure. Alibaba continued to need to ramp up the growth in all three areas, especially international expansion. So the ipo is really for commercially sustained alibabas future growth as increasingly alibaba looks at the Global Company rather than chinese company. The ipo itself is really to help expanding the Investor Base and much more Global Company rather than some other considerations. This is my view. Alibaba is sitting on a very large pile of cash now. What is the best plan for that . Invest it or return it to shareholders . Adam they are raising money from the investors. It combats the strategic pillars. International expansion has been making some acquisitions. And to sustain the rapid growth, its very important alibaba is looking at an opportunity to europet of the u. S. And for the developed markets. Where the money could be potentially deployed. Ecommerce is very competitive. You are seeing new models. Have videowe streaming ecommerce. On the one hand, alibaba is still very strong. They continue to push very hard and theres new emerging video platforms trying to get into this space. So the money they have will help them to continue to watch any potential new competitors. Either acquire or strategic investments. We are mentioning the core retail environment where alibaba has been very integrating online. That shortage of plays, where they can place the money. Paul if alibaba pushes into these Chinese Third tier cities, what does this mean for the Competitive Landscape in china, particularly for the likes of of all, alibaba as a company has been in the market for a long time. It has been helping connecting the farmers with urban demands. The is interesting is leveraging social commerce. It enables people to have a new way of consumption demand and have a deep discount. That helps to penetrate a lot of the new consumers. It is also what we are seeing is not that. It is a new form of ecommerce. Cutting into the space. Alibaba as a company has been dominant. Those are the dynamics we are seeing. Shery one of the Big Questions about alibabas ipo in hong kong was this background of five months of unrest that we have seen in the city, right. So we have this growing resentment against mainland chinese companies, will this have any impact on alibabas ipo . Capital markets, i am not an expert. My personal view is alibaba as a company is truly trying to become a Global Internet company, competing globally. Not only just looking at china, looking at hong kong. As far as i see it, so far, the Capital Market has not been affected by the political situation in hong kong. Growthook at the alibaba in business fundamentals, it is a lot for asia and the broader asiapacific region. From a revenue and Commercial Point of view, Market Competition point of view, the impact will be less. I am not an expert on the Capital Markets specifically. Paul strategy consultant partner adam xu, thank you so much for joining us. We will have more on alibabas hong kong listing throughout the day. Andrew sullivan will join us at the market open. This is bloomberg. Shery this is daybreak asia. I am shery ahn in new york. Paul i am paul allen in sydney. Business flash headlines. Google says it has fired four employees for violations of Data Security policies. A company has written to all staff in an email seen by bloomberg. The decision may escalate tensions between management and activist workers who have been protesting for months about a range of issues including ,oogles work with military censored searches in china, and claims of sexual harassment. Shery huaweis prospects have dimmed after they said they are looking for a new equipment supplier. The open Reach Division is evaluating other vendors alongside huawei and nokia as it prepares to connect millions of British Homes to optic fiber. The suppliers are likely to be among potential bidders. Huawei is accused of being a security risk, something it denies. Paul the chinese unit of imax is putting its money on the mainland, shifting away from its dependence on hollywood blockbusters. Chinese language films have been two of the five biggest hits in 2019, double the success from the past two years. Half of all the movies to be chinese. It is set to overtake the u. S. As the top market in 2020. Lam is due to speak in the next hour after her political opponent claimed a sweeping victory in weekend council elections. Senior International Editor Jodi Schneider joins us from hong kong. We have the statement earlier that said the government respects the results of this election. What are we expecting to hear from her . Regular weekly press conference. She did not speak yesterday. There was some speculation she might have spoken yesterday after the huge vote for the prodemocracy candidates. They won 85 of the seat in the District Council election and there was a stunning turn out, a 71 of the electorate turned out more than 3 million voters. Some waited in lines for hours. These are relatively low level elections, not the legislative council, so it was fairly stunning that they had that kind of turnout and magnitude of the vote. Sheher she will address will most certainly have to address this. She takes questions at the press conference so it will almost certainly,. Will she make any statements about what the government intends to do as a result of this vote . Its unclear whether she will address it directly in terms of any action the government would take. Theas the first vote since unrest began in june. Paul what have we heard from beijing and chinese stateowned media about this victory for the prodemocracy parties . Entirelyy were not congratulatory. Nor did they say that they would that any steps would be taken as a result. The first thing we heard was from the foreign minister speaking to the Chinese Foreign minister speaking in japan to reporters, saying that they did not see this as a need to make changes, that hong kong is still part of china. International editor Jodi Schneider, thanks for joining us. Coming up on the china open, Susan Buckley gives as her Market Outlook amid renewed trade optimism. Whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. A. M. In beijing. Welcome to Bloomberg Markets china open. Yvonne we are coming down to the open. David lets get to your top stories. A wave of trade optimism sweeping through the markets. The topix index has risen to a 13 month high. Yvonne alibabas hong kong debut is half an hour away. Shares have been arriving strongly. Another stop making headlines. Will step down next week