1500 jobs being cut across the world. Shery Goldman Sachs is recruited by softbank to find funds for wework as part of a 5 billion rescue plan. First, a quick check of the markets. Australia coming online. Sophie, what are you seeing . Sophie after a threeday rise for sydney stocks, asx 200 open little change after the tepid session we saw on wall street. Heads up on the corporate fund, i want to highlight Bellamy Australia said china might need acquisition so shares will be suspended today. Bonds enough straily at a risk off. Yields coming off the session low as the rba governor says gdp is in line with expectations, but contrived with weakness and consumption. Folks saddled with high debt take longer to spend. The offshore yuan this morning trading around 7. 0366. Weight on Chinese Consumer prices and pbi later this morning. Investors are setting the tea leaves going into december 15. With the latest developments around the u. S. Deal, the mexican peso trading near a three week high with a move towards 19 if it is in the cards. Paul lets get some more on that u. S. Mca deal. The next nafta. A as we have been reporting, a new north american trade deal is a step closer with the Trump Administration and House Democrats on the verge of a handshake deal. That could pave the way for approval this month. The u. S. And sickle have exchanged proposals in a package submitted by House Speaker nancy pelosi. The peso extended a five day climb on the news, becoming the secondbest performing em currency. As many as 13 people may have been killed and able can a corruption in new zealand. Dozens more were injured after two explosions on White Islands on the bay of plenty. Eight more people still unaccounted for. 31 being treated. The injured and missing include local people as well as tourists from australia, the u. S. , britain, china and malaysia. Chinese car sales dropped again last month, ensuring a second straight annual fall in the worlds biggest auto market. Deliveries across the board fell more than 4 from a year earlier to 1. 9 7 million units. Months. Decline in 18 global automakers under increasing pressure with sales also falling in europe and the u. S. From thes been banned olympics and other International Competitions for four years because of the doping scandal. The World Antidoping Agency is acting after officials covered up evidence in russia. Also banning russian officials from attending the event. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Shery thank you. Investors turning cautious ahead of another major events. Time running out ahead of the sunday deadline for higher u. S. Tariffs on chinese products. The fed will hold its last policy meeting of the year while Christine Lagarde stages her first meeting at the ecb. Investors hoping for some sort of regulation resolution with the u. K. Election on thursday. How should markets face this wall of worry . Lets bring in the founder for kumar Global Strategies to joins me in new york. Great to have you in the studio, in the flesh. What great timing because i want you to help me understand what is going on with the u. S. Economy now. Great numbers, not so manufacturing numbers. Has any of the data we saw changed the calculation for the fed should mark i dont think they change the calculations at all even of the meeting this week, tomorrow, tuesday and wednesday, you will not see any change in policy. You will not see any change in the message. The question is is it going to change it for the fed in 2020 . Keep in mind, we have had even more job creation earlier this year, as many as 320,000 jobs created at the beginning of 2019. Was, the november figure affected by General Motors coming back to some extent. The previous number was unusually depressed for that reason and it was made up by coming back here again. The other reason why the feds calculation does not change is because increases have remained very moderate. Inflation and pressure not significant. Something has prayed changed in the overall mechanism which i think we have a reason but the fed is still not grasping what it is that is taking place. Shery is the fed grasping what is happening in the repo markets as well . Banke now hearing from the international sentiments coming out and saying there may be a structural problem. Take a listen first. That the one hand, we know particular quarter ends at the end of the year, there tends to be pressures on the repo market. That is likely to happen again. At the same time, after the current incident, the authorities are better prepared to deal with those tensions and to provide the necessary liquidity to ease problems in the market. Shery what are you exciting on that front . Komal i think the fed has no answer but to throw more and more money. 90 billion of new cash coming into the market every month. If you look at what has happened to the fed balance sheet, it peaked at 4. 5 trillion in 2015 and went down to a minimum of 3. 6. We are back again over 4 trillion. By june of this year, we are going to beat the old record. We are going to go over 4. 5 trillion. The question is when you have a problem, when there is an illness, yes, it is possible to take a painkiller and it pushes the pain out. But you have not cured the problem because the fed has not figured out what the basic problem is. Shery even a standing facility would not do that . Komal i dont think it would do that. This is the first time this has been happening since 2008. All the facilities and all the preparation they had did not help them. Now, you have all of the money bisng thrown at this and the and the statement pointed out because four or five large institutions are dominating it. That is not a new development. He said a few minutes ago and the tape you played that it was because of end of quarter seasonal pressures. We have that in the last 11 years. It happens of the end of every quarter. If it happens at the end of september, how bad is it going to get at the end of december . Because you have not only ended quarter, but end of year pressures. The problem i have with the feds they still have not found out the cost of the problem three months into this crisis. Lets move on to a different issue, that of trade. We do have a u. S. Agriculture secretary suggesting we are not going to see additional tariffs on december 15. To what degree does that improve the picture . Komal i expect also that the tariffs will not be imposed on december 15. The reason is imposing those tariffs would be more harmful to u. S. Consumers than they would be to china. Especially, this would come in the thick of the christmas season. Thata political viewpoint, is what you want to do if you want to lose the election. I dont see ways in which it can be done on the u. S. Side. I think we are going to find some way to explain things are improving and cancel the tariff hike. Paul so, the u. S. If you look at the recent data out of the two economies, china pierced to be struggling a little more than the u. S. Which has a blowout jobs report. Do you think there is a chance the u. S. Can have advantage of these talks . Komal it can try to push the advantage in the talks. The u. S. Economy is a much better shape. Data, the chinese are in much worse shape. There is one big difference however. Reelectionrump faces in november of 2020. Chinese president xi jinping does not have elections coming up. He can afford to be patient. I think that is one major advantage the chinese have in the negotiations. I believe they would be better off negotiating better with the reelected President Trump or the successor rather than going into the thick of this election battle and agreeing to a deal. Shery what about a comprehensive deal on the nafta 2. 0, usmca . If we do get this agreement, everyone seems to be flying into mexico right now. Will this make a difference in the u. S. Economy given that we have anticipated this change to happen and also the nafta, the original nafta has been in place . Improve in the sense if it is not coming into being. But is it already done . What has happened is the white house was in favor of it. They had to get the Democratic House to go with them. Now, Speaker Pelosi has indicated she would be also happy to go with it. But, this is not a pure u. S. Deal. It is a free country deal. It has to be approved by canada and mexico. I dont think big issues on the canadian side, but the mexican ministers set earlier today he cannot allow the u. S. To come in with the labor practices being followed. I cannot imagine us letting observers to be patient and washington, d. C. To check u. S. Policy. If it is going to encroach on sovereignty of the country, whether it can get done i think if it gets done, great. It is good for the market. I still keep my fingers crossed as to whether they are able to bridge the gulf ahead of them. Shery are we getting to a closer closer to a resolution in terms of u. S. Trade with everyone else given that we may be near the usmca deal . Passedd japan, japan has to deal with the u. S. Through parliament. Now the only one left is china. This is a big one. Komal one left is china. The other hand, new tariffs have been threatened. Shery steel and aluminum. Komal which were not even in the picture before. Shery the french as well. Sorry. Komal french wine, french cheese as well. Mark is whation happens the german autos . This can take an unpredictable turn. The elections are still 11 months away and it is hard to tell politically which way it is going to go. Paul we do have to get your thoughts on paul volcker, the former fed chair. He passed away at the age of 92. What legacy is he going to leave behind . Komal i have followed him both as a student of economics as well as being with him in meetings when he was a moderator, when we were in small groups discussing the Global Economy and he would talk to us with what we were thinking about. Me,part that amazes impresses me is the fact that in 1979 where we had disastrous Monetary Policy and his predecessor inflation shooting of skyhigh and mortgage rage and private Interest Rates going to 18 he had the political courage to tighten policy so much that inflation was run out of the u. S. Economy. The part which i think he recognizes which should be a lesson to the Federal Reserve today is he realized with high inflation, Monetary Policy is something that by tightening, you can bring it down. What we are finding last 10 years is we are trying to push inflation up by loosening Monetary Policy. It does not mean you can do that. You cannot push on a string. You can only tighten on a string and chairman volcker showed us in 1979 to 1981. I think the world owes him a great debt of attitude gratitude for what he did during a very crucial time in u. S. Economic history. Shery thank you so much. It is always great talking to you. Great to have even the studio. Founder and president of sri kumar. We are now seeing this headlight on the bloomberg. House Speaker Nancy Pelosi saying the final usmca deal has not been agreed to. We have been waiting for any more information on that nafta 2. 0 deal. We know now that the canadian representative is flying to mexico tomorrow, on tuesday. We know ambassador lighthizer and Jared Kushner is heading to mexico to finalize the deal. House Speaker Nancy Pelosi coming up and saying the final deal has not been agreed to. Still ahead, we will be discussing the nafta 2. 0 agreement. President saying it is looking good. The latest on the usmca deal as the u. S. Team prepares to fly to mexico. Back plus, Boris Johnson to his key brexit message as polls put him ahead. We will discuss the odds of any upset this week. This is bloomberg. Paul this is daybreak asia. Im paul allen. Shery im shery ahn. The latest headlines on the usmca trade deal between the u. S. , mexico and canada. We are hearing from House Speaker nancy pelosi saying the final deal has not been agreed to, but they must see the implementation of legislation. We heard the canadian representative and u. S. Were presented to this trade deal are flying into mexico on tuesday. Krista friedland is likely to join the talks and makes a coat, saying she is set to meet ambassador light hauser and mexican officials on trade as well. We heard from President Trump saying the nafta 2. 0 is looking good. Now, we are hearing from nancy pelosi that they still have to see implementation legislation. Lets bring our economic editor Sarah Mcgregor with the latest. That is all we heard from nancy pelosi that the usmca deal has not been agreed to. What could be deterring that democrats from pulling the trigger on this deal . Sarah this just shows the complexity of halley all of these vested interests in the final stages of the usmca talks. I think probably nancy pelosi does not want to get ahead and say this deal has been done. She wants to see that final wording because with trade deals, that wording can make a difference between having having a verbal understanding and really seeing it set in stone. It is an encouraging sign we are seeing the principles from canada, mexico and the u. S. Meeting in mexico city tomorrow. Getting mexico on board. Mexican label reforms for the pharmaceutical industry, where a lot of operations are happening in mexico. Having mexico on board is the key for this. Bottom line, we are led to believe things really are moving ahead with this deal and there could be a vote in the house as early as next week. Paul you mentioned some of the pharmaceutical reforms. What are the other key sticking Points Holding this up at the moment . Sarah the democrats are very keen to make sure supervision of label reform to mexico. They want to make sure workers are not being underpaid and it is an incentive for American Companies to set up shop. There has been criticism all along with nafta. I think they really wanted to make that robust. The labor unions in the u. S. Were really keen for that. A big support base for the democrats. It sounds like they have one of the biggest unions, if not the biggest in the u. S. Behind the changes to the usmca deal. That is another check mark off the list of people they need to please to get this deal through. Paul Bloomberg Economics editor Sarah Mcgregor, thank you for joining us. Still to come, hundreds of job cuts at Morgan Stanley. We will have details on the staff most affected. This is bloomberg. Paul this is daybreak asia. Im paul allen. Shery im shery ahn. Now to the big changes of Morgan Stanley and hsbc. Both announcing major staff changes. Those changes include slashing 1500 jobs, including executive, sales and trading. Su keenan has more with the latest. Lets start with Morgan Stanley. It seems to be a sign of the times. Su we have seen Deutsche Bank and citigroup cut hundreds of jobs, but this announcement by Morgan Stanley is significant. 1500 jobs. It will hit mainly in new york and london offices. It is fairly broadbased. To be take a look at how the stock is performing, you can see the bumpy ride year to date has a lot to do with the uncertain Global Growth outlook. It also has to do with the fact we have had a multiyear trading many forust firms. It moves towards electronic platforms that removes the need for humans. These cuts at Morgan Stanley argued towards tech and operations. Also sales and trading. Multiple management directors. Usually high management gets spared in these kind of cuts but not here. This is part of a sign of the times. It is being announced as part of the yearend efficiency but it does have to do with outlook and change in trading revenue. Paul it is not just Morgan Stanley. Hsbc cutting the ranks. Some new hires with the strategic revamping how is that playing out . Su this is a sweeping change. It sort of began in august. You can take a look at how hsbcs shares have traded. Again, it has been tough sledding. They announced the Investment Banking chief will be leaving in march. Again, he will be moved to a different role the head of Corporate Banking at that time. They are going to move several of the Senior Executive to new roles or encourage retirement. The ouster ofs their ceo in august a leadership change but this pruning of the ranks and announcing new hires as part of a strategic revamping and three of the most Senior Executives are set to retire or move into new roles again. There are remaining on wall street that do not like to see these kind of changes but analysts will tell you they really are important in these new environment where a bank or Financial Firms ability to limit cuts is almost as it important as their ability to boost revenue. Paul su keenan, thank you very much. A quick check of the latest business flash headlines. Goldman sachs is being asked to raise new financing to revive Office Sharing startup wework. The bank is arranging a line of credit as part of softbanks pledge to offer 5 billion in funding to we were created in order to make the deal more palatable to other lenders, softbank will be listed as the borrower and wework will be a coborrower. Shery the vision fund is offloading its near 50 stake in wag is the company cuts jobs. Regaining two board seats. Vision fund has confirmed the sale but neither side has disclosed numbers or employees affected. But itllion last year, has seen stakes in uber and wework turned sour. Paul Kevin Johnson could be set for a 50 million cash bonus if the stock beats 80 of s p 500 companies in the next three years. It will be reduced if the return is lower and eliminated if the stock beats less than 40 of its peers. The coo has an award with similar terms. The bonus will reflect highcaliber leadership. Lets get a quick check of how we are trading in the early going this tuesday morning. In australia, we have the asx weaker by a 10th of 1 . Over in new zealand, broadly flat. It looks like we are setting up for a flat open in japan and south korea as well. Volumes that we saw in the u. S. Trading. We saw u. S. Equities slightly weaker as well. In a moment, we are going to talk about brexit and the u. K. Election. Byare going to be joint Duncan Edwards about his neighbors are prepared for brexit. This is bloomberg. [ electrical buzzing ] [ dramatic music ] ahhhh ahhhh elliott. You came back december 15. December 15 is looming. Do we get a schedule increase in those tariffs . Delayed and suspended. Until december 15 tariff deadline. Chinese manufacturers are well aware the risks after sunday, december 15. They want to make sure they get through the deadline without the tariffs. December tariffs not being put on at a minimum. The u. S. Will bump up tariffs. The december 15 tariffs could be avoided. E wouldnt think scoog impose new tariffs before christmas. If that happens, it will be an ugly endoftheyear. A wide range of outcomes. This will come down to the wire and we will probably have a couple more shaky days between now and then. Views on the looming tariff deadline and the trade situation into account. The u. S. 10 year yield has been below 2 since august 1. Sophie going into 2020, the biggest dealers and treasury do not see a move back above 2 . Socgen is the most bullish with the cost of the 10 year to fall for fed easing. Goldman sees no move by powell. It is the most bearish, 225 basis points by the end of 2020. Followed by jp morgan with calls of 205. Lets get a look at the dollaryen, Holding Steady this morning. We did see a pickup in vol, rebounding as we near the december 15 deadline. Risen above the year to date average for the first time in nearly two months, rising 54 basis points as traders take cover. Lets check in on the trading session in australia. Sydney stocks edging lower, snapping a three day advance. Off by 2 10 of 1 . The aussie dollar is steady. We are seeing australian bonds gain ground with 10 year yields rising falling as much as five basis points earlier in the session. Paul thanks. For aget over to ritika check of the first word headlines. Ritika russia and ukraine say they are committed to a ceasefire at the end of the year after talks in paris. The conflict has claimed at least 14,000 lives, with russia annexing crimea in moscow becoming more embolden in the region. The meeting between the leaders of russia, ukraine, france and germany also secured agreements on a full prisoner exchange. Former fed chairman paul volcker has died at the age of 92. He was in charge when the fed tamed inflation in the 1980s and led president obamas big to risktaking at the big banks. For over half a century, volcker became a oneman cleanup crew. A cure for runaway inflation and a response to the housing collapse that triggered financial crisis. Hong kong is facing its worst ever economic slump, with thousands of jobs under threat. Shops preparing to close down forever. A survey by the Retail ManagementAssociation Says about a third of respondents are laying off staff, while more than 40 expect to go out of business in six months. Months of unrest has pushed hong kong into recession, affecting tourism and hospitality hard. Taiwans exports rose the most in more than a year on higher demand from china, highlighting the status from a crucial chip supplier in the rollout of 5g. Outbound shipments climbed 3. 3 last month, the fastest pace since october last year. Economists had been exciting an increase of about 1 . Deliveries in china rose 8 and almost 70 in the u. S. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts. This is bloomberg. Shery thank you. The u. K. Is in the final days of campaigning ahead of thursdays general election. Our next guest says voters are being offered two very different visions of the postbrexit future. Duncan edwards is chief executive of policy and advocacy for British American business and is with us from washington. Always great having you with us. Explain to us these very contrasting visions of postbrexit u. K. Offers by these parties and what it means depending on the type of majority or parliament that could result in this election . Duncan yes, this election was caused because an impasse in parliament over brexit. How to deal with this incredible referendum result from three years ago. That is clearly still part of the choice that faces the british people on thursday. When you look more closely at the manifestoes of the two leading parties, you do see completely contrasting visions for the future of the u. K. On the one hand, the governing party are really it is a continuation of the last 30 years of middle ground consensus. But it is on the laboural difference. That they return here to the labour party of the 1970s and early 1980s. Wholesale nationalization, equity in large companies. Legislationf union and a whole bunch more of very radical socialist policies which would transform the u. K. Completely. Shery we have seen different polls going into the election. Some giving the conservatives a comfortable majority. Others not. How do your members prepare ahead of the results . Duncan well, it is difficult. You can only prepare for what you know about. For the last three years, large u. S. Companies with a presence in the u. K. And their british counterparts have been preparing for brexit. Trying to mitigate the impact of brexit which is a policy that nobody really wanted. They have been doing that work. Preparing for the kind of change that would result from a working majority for the labour party is extremely difficult. Because the intention would be to act very quickly. Nationalization would start in january according to the shadow chancellor. Putwhole program would be in extremely quickly. I think it is an election that started out about would brexit be completed . Would it go back to the people for a second look . It has become a serious thing about what kind of environment, what kind of economic government does the u. K. Want . About yourur point members not particularly wanting brexit but preparing for it anyway what would be worse, brexit or a labor victory which would then mean negotiation of another deal, which would then be put to a referendum, which would then need more delays . If you are faced with brexit or more delay, which is worse . Duncan thank a balance i think it is more clear than that. The manifesto from the labour party is much more concerning than the implications of brexit. Brexit could end up maintaining a very close, tariff free relationship with the eu. Apart from leaving the legal institutions of the european union, a lot of business is likely in our view to continue more or less uninterrupted if there is goodwill on both sides. The changes being conflict contemplated by the labour party at the moment is a complete change from the market economy. So, i think there is very little doubt. This is not a great choice to have, lets be clear. On balance, people would prefer businesses would prefer a conservative wind. Paul Prime MinisterBoris Johnson has been my making much of the u. K. Is out of the eu, it can then negotiate free trade agreements around the world. What are your expectations of being those coming to fruition, especially in the u. S. . Duncan i think the expectation is there. There has been support for this from the leaders on both sides. The president in the u. S. And the Prime Minister have given their support for an agreement. The challenge is time. First of all, you cannot really get into the details of u. S. U. K. Trade agreement until you know where you stand with europe. That will take the majority of this coming year, probably longer. Then we get into the u. S. Election. We also begin to get into the tray Promotional Authority in the u. S. It is really a question of how much time is there for a comprehensive freetrade agreement to get negotiated . Theres a lot that can be done anyway on both sides to maintain and move forward we already very positive trade relationship. The trade agreement looks like a long shot, to be honest. Paul just briefly, i would like to get your views on the pound. Where do you see that heading given the various scenarios after the election . Duncan yes, you have to be careful. Polls have been wrong before so i think there is a little bit of hesitancy. The market seems to anticipate a conservative win. When you see sterling edge up in the markets edge up over the last few days i think if there is a clear win, some 30 plus seat win for Boris Johnson, i think you will see the pound move ahead pretty quickly. Impossible in not the next six months. Paul British American business ceo Duncan Edwards. Thank you for joining us. Still to come, goldman is jumping into the wework cleanup. The new Debt Financing plan. How the firm plans to lure other potential lenders. Details next. This is bloomberg. Paul this is daybreak asia. I am paul allen in sydney. Shery i am shery ahn in new york. The drive to say we were continues with Goldman Sachs playing a role in keeping the sharing startup afloat. It will arrange a line of credit for almost 1. 8 billion dollars as part of softbank pledge to put together 5 billion in Debt Financing for wework. Joining us is gillian tan. When can we expect is of credit and what happens to the facility . Gillian it is excited to be in place, or the targeting at the end of the year for having it in place and 1. 1 billion existing credit. Paul what are the implications of this for both wework and softbank . Gillian i guess it is great for wework. Softbank continuing with its wreck you rescue package. 1. 6 billion letters of credit, that is part of the 5 billion Debt Facility and the implications for wework we saw the bond rise more than four cents on the dollar which is i think is the biggest jump, second biggest jump in the last few months. It is edging out of distress to territory. Bondholders are assured by this presence of goldman leading the Debt Facility and moving wework attentively in the right direction. Paul what is goldman present in this deal . Is that surprising at all . Gillian not surprising. Jp morgan was the bank most closely aligned with adam neumann, weworks ceo and cofounder. To,e dimon was very close and goldman is closer to softbank and has been involved in a bunch of their deals. Two different Credit Facilities with softbanks vision fund. It is not surprising to see them now that softbank is on track to own about 8 of wework. Shery we are hearing that Softbank Vision Fund has a nearly 50 stake in wag. How much pressure is this with wework putting other company and vision fund . Gillian it is all separate. The vision fund is made up of about 90 holdings. One of which is wag and another which is wework. Both among the worst performers. Perhaps that is why they are in the headlines. Wag is a dog walking company, for those in asia not familiar with it. Where people can book on an app for folks to walk their pets. The vision fund is selling it stake back to the company. Gillian Senior Reporter gillian tan, thank you for joining us. Paul softbank is part of our next guests coverage. Asymmetric in advisors Senior Market strategist who joins us from hong kong. I do want to start with this news we had today to do with softbank and wework. Does this change your the appeal of either of these companies, something in particular . I do need to ask you to disclose whether or not you have a position here. No, we dont have a position. The answer is no. It does not change our view. We have a short sell recommendation we have had since february. We think that softbank missed finance. Wework rescue package. They dont have the money themselves so it is not surprising to have Goldman Sachs coming to the rescue. The point is that softbank is fully invested in the vision fund as a previous guest says. 90 investments, mostly investments are losing money. Investmentethod of was to look for revenue growth. At to get themselves out of this mess, it will take a lot longer. The other thing about the vision fund is they have 40 billion of the vision fund which opera for preferred shareholders which are obligated to pay 7 returns on the 40 billion of vision fund for shareholders. Theres a lot of pressure on softbank. Away from thate topic and onto semiconductors. I want to bring up this chart on the bloomberg terminal. That memory prices could be stabilizing after a long period of fluctuation. This is a very cyclical industry. You can see shortages looming. Can you explain what . Amir basically, what we are seeing is the data generation that is taking place on the data, particularly the centers are obviously the ones that are storing this data. Just to give you an idea of the last two years of data in these data centers accounted for about 90 of data stored. That gives you a fairly good idea of how quickly data has been generated. Is get into next year, we have seen big cuts in capital spending. Demand is catching up. What we are going through right now is a big correction. Last quarter, i believe, memory revenues were down by 33 globally. That is going to decline further. Is rates of decline improving fairly quickly. As we go into the second half of next year, we are likely to see , astages appearing both data generation continues to go up with 5g. Cloud storage growth as well. Shery does that mean you are bullish on semis and who do you like . Amir we have been bullish on semis at the beginning of the year. Is somewhath now being behind the curve given how well the segment has done. What we have done, we started looking more we are more focused on certain spaces in the sector. Producersy bullish of because of lag for the correct reasons. They have not seen the recovery mainly because of memory and memory is recovering. We think ishich very wellplaced for that recovery in memory. One of thee screen, smaller Semiconductor Production equipment manufacturers, which is benefiting from extreme ultraviolet. That is going to be the big move next year, the migration of the light source towards euv. Key is going to be another aspect of Semiconductor Manufacturing as we move towards nodes. We need a totally different light source and that light source is euv, companies are geared towards that. Mainly Smaller Companies like names, and some of the that already had massive moves like laser tech. Shery what about Taiwan Semiconductors . This chart shows they have had a pretty good run. We are talking about their shares up 12 weeks at the past 13. Amir they are in a fantastic position. Volumes of their position. Next year, 14 billion to 15 billion which is the highest amount they have ever had. Next year, they will spend the same amount but mainly on the cutting edge nodes. Towards finering notes and semiconductors, they are in a very strong position. I think particularly for application processes, use of 5g will be a very big driver going into next year. Internet of things is another aspect of it. It is linked to 5g anyway. Aspects that is going to be a bit of a drag. Automotive is one where we have auto demand fairly weak. We have not seen any signs of that recovery. But as far as industry applications like factory automation, we are beginning to see signs of that recovery. That is really good news for applications and so forth. Generally, we are certain to go into a very strong recovery phase in the second half of next year. Paul all right, thank you very much for joining us, amir. Asymmetric advisors Senior Markets strategist. I want to get you across some breaking news on the terminal. Arton lifelock mulling combination with mcafees consumer unit, according to a report from the wall street journal. Among the options being considered according to people familiar might be a combination with the consumer business of mcafee, the Antivirus Software company, now owned by intel. They include private equity firms tpg. We will keep an eye on that story. Norton lifelock mulling a combination with mcafees consumer unit. Plenty more to come. Stay with us. This is bloomberg. Shery this is daybreak asia. Im shery ahn to new york. Paul im paul allen in sydney. A quick check of the latest business flash headlines. Morgan stanley cutting about 1500 jobs around the world as part of the yearend efficiency drive. The losses are mainly in tech and operations, but also affect staff and sales, trading and research. The cuts amount to 2 of the banks total workforce and includes workers in new york and london. Citigroup and Deutsche Bank have also eliminated hundreds of jobs this year. Shery indias struggling yes bank is excited to reject an offer that accounts for more of its half to raise 2 million in capital. The board meets tuesday and will rebuff an offer of 1. 2 billion from the canadian businessmen, stpg holdings. Yes bank initially fell on the loose, to close higher. Shares down 17 since the end of november. Paul apple is officially returning to the Las Vegas Electronics Show for the first time in decades. To discuss Consumer Privacy rather than pitching a new product. The last major appearance was in 1992. John scully introduced the largely failed device. Apple has worked behind the scenes of ces for years, identifying the next big thing. Speaking with partners and suppliers. Shery markets open in tokyo and seoul. Lets turn to sophie for what to watch. Sophie futures are pointing to the downside. Trading flood in the asia session. Gtv the focus of the fiveyear sales do later today. We have this looking attractive according given the five year yield is at the highest level since before doj expectations ramped up but the results could be weak. Domestic investors may be cautious given they are worried about selling back to the boj. Quick check on the mexican peso which went at a twoweek high on the hopes of a usmca deal. A move towards 19 could be possible. Paul all right, thanks. Still to come in the next hour, the outlook for chinas corporate debt sector amid a Record Number of defaults. Fiona singh joins us. This is numbered. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Pan asiasmorning major have just opened for trade good morning. Asias major markets have just opened for trade. Welcome to daybreak asia. Paul our top stories this tuesday, the next nafta moves a step closer. Top democrats say nothing has been agreed to yet