Lets have a look at what is going on with these markets. We would normally be looking at the nikkei, but tokyo is looking at the public holiday. There we go. Taiwan moving to the upside. Hang seng adding to some of the gains. Overall, we are seeing a mixed bag. Shanghai is lower. The asx 200 not having a good time. Lets have a look at the other Asset Classes which are perhaps on your radar here. Kicking things off with a look at gold, just down a fraction. Investors are sticking to their guns. We have seen it shifted to gold ever since the middle east tensions did come to the fore with the downing of that jet and the killing of general soleimani as well. 1556. S just at the moment 98. X crude, oil holding onto the biggest weekly drop we have seen since july. Easing tensions regarding whats going on in the middle east. On top of that, the pound is a little bit lower. There is the possibility of a rate cut. The bank of england policy maker showing that there are no signs of the economy improving after that general election. See ny, 6. 91. Yvonne s su keenan in new york. Su keenan inng new york. Su it is reportedly said to identify many shortcomings. The investigation by the independent Police Complaints council finds a lack of communication among frontline commanders, a failure to separate peaceful and violent demonstrators, and no clear guidelines when firing tear gas. 300 page report may be punished early next published early next month. China is pledging more credit for small firms after cleaning up almost 300 billion dollars worth of nonperforming loans in the past year. The value of the mainlands shadow Banking Center has fallen from a peak of 2. 3 trillion in the last three years. The regulator is vowing to iranian businesses that are seen as highrisk and to prevent credit from flowing illegally into the property markets. Protests erupted across the country after the government admitted its military mistakenly shot down the ukrainian airliner passenger jet last week. The army says the boeing 737 was downed shortly after takeoff due to human error. All 176 people on board were killed. The admission is a dramatic reversal of irans initial comments. Authorities first blamed technical problems for the crash and then said an engine had caught fire. We made a mistake and the number of our compatriots were martyred because of our mistake but it was unintentional. We apologize. We are sorry. But we will make up for it. We will not allow any one of our people to get hurt. We are standing steadfast and firm like a pillar. We get shot but we do not sit down or kneel. Lebanons iran back has below group said the missile strikes on u. S. Bases in iraq are only the start of irans response to americas killing of general soleimani. Thebella reade hezbollah leader said it was merely the first step. It will force the u. S. To leave the region. He added iran was not yet has not used what he called its sophisticated weaponry. Australian Prime MinisterScott Morrison says the country must become more aware of the impact of Climate Change as bushfires continue to burn out of control in several states. Speaking to the abc, he admitted Global Warming is a country beating factor to the crisis and that australia cannot do much more to cut carbon emissions. At least 28 people are known to have died in the fires along with one billion animals. 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. I am su keenan. This is bloomberg. The ongoing volcanic eruption, just 65 kilometers from manila, caused the city to shut its schools and government offices and the Stock Exchange has expended suspended trading. David lets bring rishaad lets bring in our reporter in in manila. What is the latest . Claire the second highest alert level. In irruption could happen in the coming hours or days. On monday morning, we saw magma eruption. It started sunday but it has fountain. To a lava we have monitored 75 earthquakes in the area, which could indicate more magma activity underneath. Theres been total evacuation of the area because this is one of the most active volcanoes in the country but also a very popular Tourist Destination because it is a small volcano in the middle of a picturesque lake and it attracts tourists, travelers, and hikers, so those people have had to be evacuated. It could reach up to 200,000 evacuees, but no casualties have been reported so far. Rishaad thank yvonne thank goodness. Tell us about the per cautionary measures. Them have enough precautionary measures. Declared evacuation as early as yesterday, but the impact can really be felt as far as the capital in manila, which is 60 kilometers away, mostly because of the ash fall. You can feel it falling. It is coaching the roads, cars, and houses so much so that the government has canceled all government work and classes in manila and surrounding areas. All markets are shut with stocks, bonds, and currency trading suspended on monday. The manila airport, the Manila International airport, the countrys main gateway, is also shut until further notice until regulars try and clear out the. Sh and dust from the runways there no real notice about when operations can start again. So far, 60,000 passengers have been affected and more than 200 flights have been canceled. So far, people have been advised to stay indoors, and if they do go outside, they will have to wear masks to protect themselves. Rishaad thank you lets move from manila to taipei. The prodemocracy president has won a landslide victory over her opposition to clinch a second term. It moves the island further from beijings grasp. It has been extending the Third Quarter market rally we have been witnessing. That the beijing authorities understand that democratic taiwan and are democratically elected concede towill not intimidation. This is the best way to serve our people. The result of this election has made the answer crystal clear. Lets cross over to taipei. Stephen engle is on the ground, covering all things election. Voters what swayed the this time around for taiwan to get such an emphatic victory. I think the geopolitics definitely played a very large part. Of course, the sentiment from hong kong, there was a Kindred Spirit among the young people in taiwan. They did not want to see taiwan face a similar fate that is happening on the streets of hong kong. The winning president , for a second term, has said she rejected any type of one country, two systems model for taiwan, because saying clearly it is not necessarily working for hong kong. Beijing obviously would like to see unification at some point, one country, two systems for taiwan. It is further from reality, if you will. The markets, as we have seen, they like the removal of the uncertainty that this Election Campaign had provided, even though the Fourth Quarter very good for the markets and the overall sentiment for the economy. Generally speaking, in the past six elections, we have seen a 7. 4 increase in the benchmark index in hong kong in taiwan, in the 30 days following the election, and that is what we are seeing, a bump up again, upper towards 30 year highs. It has strengthened for an eighth consecutive week. Last week, the longest streak since 2013, so there is a bullishness about the economy and the markets, and theres a bit of euphoria among the young people, that their candidate won. Us whats really coming out of beijing. Has there been a response . They cannot be too happy about all of this. Stephen no, they are not too happy about it. I mean, obviously, they kmt campaigned on a platform that closer integration with Mainland China would be good for the economy and overall pass of taiwan. Asian wanted to see the kmts candidate win as well. There have been many allegations here that theres interference or intimidation from the mainland chinese. Whether that is true or not, i will leave that to others to decide. However, if that was an open strategy, it not only failed, it kind of backfired, not only on the kmt, but also on beijing. Beijing is coming out with some fairly visceral comments this morning. We have a statement from the news agency, and the commentary saying that they use dirty tricks such as cheating, repression, and intimidation, to get votes, fully exposing their selfish, greedy, and evil nature. Instate media from beijing, blaming antichina forces as well as the west. Thank you so much for your coverage this weekend. Stephen engle, our chief north rishaad rishaad asia correspondent in taipei. North asiaief correspondent in taipei. Rishaad arriving at his china moment, as it were. Wednesdays signing of the phase i trade deal includes commitments on intellectual property, currency manipulation, billion worth of u. S. Goods. Yvonne trump is confronted with the same question. Will beijing deliver on its promises . There is a real enforcement provision and if they do not comply with the agreement, the president retains the authority to put on tariffs. The existing tariffs and additional tariffs. Yvonne that will definitely be one of the hot topics at the financial form. Lets crossover to the Hong Kong Convention center, where we find david with our next guest. David right. Thanks absolutely. Thats a big topic. It was a big headache for many economies last year. If you look at that within the hong kong context, there is not and the social unrest that took place for over half a year. Talk about the damage there for the economy and what lies ahead. We are showing this. This is the secretary of commerce and economic developing for hong kong. Welcome. Studio anchors in the were talking about the updates to the trade war. Hopefully we get a phase one trade deal signed. Looking back at 2019, was that a bigger problem or was the violence in the streets the bigger problem . Hong kong suffered the damage. U. S. And china are both Major Trading partners. Things are happening locally and to have a bearing on our local economy. It was the two combined gather. Hong kong had a very tough year in 2018, so looking ahead, i think there is some easing on both sides. We are pleased to see sort of the agreement between the u. S. And china on the trade deal but i think the real test is when will the tariffs be removed . 25 on trade to is not small for any business. The trading between the u. S. And china for hong kong constitutes less than 20 . Economicsl environment is going to be dictated by them. David has there been anything in the data thats available to your team that suggests the worst is over, and part of that question is is the government operating under the assumption that Bank Contract again in 2020 . Edward on the easing of u. S. China relations, that will bring that to the economy. Easy indications. 2018. Growth. Ed 3 that was a good year. Was the trade war. 2019, we have been sort of the economy. It happened locally. Say, it will not solve the decline. The local unrest, we are also seeing some easing of tensions, downhings have been quite in recent weeks. Law and orderthat will be restored and also at this. Lets look Major Business leaders still come back to hong kong. We are hoping that these will be positive indicators. There is always a time lag in terms of economic performance. 2019 i think, we are still stuck. Businesses 90 of are small businesses. You are literally giving them cash. Edward for some of them. David how does that work . Edward we have been acting very swiftly in 2019, partly to address the u. S. China trade war. More thanvolume is 3. 5 times of their gdp so very externally oriented economy. Our businesses by enhancing their cash flow, carrying on and enhancing the banking and finance. We rollout guarantees. In need of cash flow. We also are sort of easing their cost of business. The government cutting tax and payments. This is a typical thing that we are doing. We prepare for the worst. Sectors, we say that affected by the drastic reduction in tourists, we need to get them an incentive. We are focusing on industries and also sort of agencies. We encourage them by giving a cash incentive for travelers. This very move in difficult time. David it basically allows those businesses to offer their products and services at a discount. Well, we haverse, orders of business. More enterprises, the micro smes, they are facing a couple hits. One is the actual turn of business, and the other is liquidity. That is why the financing scheme is always very important. Banks would be happy to support them on the assumption that there is a guarantee. To helping them david we are talking to the break. Many of our viewers would be curious to know, was there any point that you and your team were considering a caps on rent . Edward the government has been setting the example. We do sort of have places where we ran out of businesses like restaurants. For those areas, the financial secretary has given a rent concession. 60 for six months. They set an example. Market. G is the the rental is set by the landlord with their tenants. I understand there are a lot of negotiations. Government can do. We have seen part of making certain concessions. Based on what you have noticed, have they followed . Are they following . Are they keeping rent at the current rate . These in many of regional sectors, many of the rental level is not just fixed. Alue i understand that major lenders are in discussion. It has tried to shoulder or share the pain during this difficult time. They will both do their part together. David every month, and more so and trackwe report the Unemployment Rate of hong kong, which frankly, it has not gone up by that much. I would imagine this does not include people who are underemployed or still employed know how many people actually affected on top of that . Edward if we look at the number, 3. 2 . David almost nothing. Edward by hong kong standards, that is already a dip. We have seen certain factors, for instance, tourism related sector. Hotels. They are having a different cut. Some into 5 Unemployment Rate. How this islook at at the yearend. Usually for the chinese community, they look at the chinese new year. There might be some enterprises having a tougher time. Of a might be some sort timelapse in terms of the economic indicators. Things on the global and regional perspective are having some sort of indication, the easing of the tension between the trading partners. David the time lag. Is that six months, eight months . Edward i believe 2019 will still be a very difficult year. 2020. Pardon. I think that is affected by the world banks latest, projecting globally, 2. 5 percent, which is on the lower side. Pollss a factor in the and the forum. People are still highly conscious, so i believe if things were to be improved, the u. S. China trade tensions would when willrther the tariffs be cut . That will be a huge cost for trading in commodities. That will also affect the figures. Think we need to work doubly hard for hong kong to ride out this storm. David you are correct to also point out that on both fronts, things have eased as well. It we dont know which way those things are going to go. Does the government have more measures in his pocket that it is prepared to rollout fiscally . Government hasng not spent any fiscal effort. Hong kong economy the population is small. The economy is much bigger. It is very much marketdriven. We have to work handinhand with the market and we always respect the market forces. Hong kong is having a high degree of transparency due to the lack of floor levels. These are fundamentals, very important considerations for businessmen. When they travel around the world, the reason they coming to hong kong must be those fundamentals that remain strong. David it is still a good place to do business. Any longerterm businessman would tell you that as well. Looking back, when you look back, was there any structural thing in the economy that you think you should have addressed because it would make things more resettlement resilient . Edward people see problems and they immediately try to find a way to fix it. Believe people are searching for any methods. They are a market that is highly resilient. When you look at it today, the Asian Financial forum has been running for two decades. People keep coming back and we are seeing a lot of this Major Business event carrying on. I think people come here to see for themselves. People talk to people who are working, studying, doing business here. I think that will tell us to bring david lets hope you are right. Edward yau, secretary for commerce and Economic Development here in hong kong. Rishaad, ivanka. Yvonne thank yvonne. Yvonne thanks. He mentioned about the hong kong we are watching the hong kong dollar. We ended the week towards the strong side. Morgan stanley saying get ready for these wild swings. More volatile, less protectable patterns, edging to the stronger end of the band. We are at the strongest level we have seen since 2017. You can look at the seasonal demand. Cash is usually pretty tight around this time of year. Some are saying it is getting a little bit more unpredictable. Short the rishaad hong kong dollar. Yvonne those are unwinding, too. Rishaad lets have a look at the latest business flash headlines. The first of hong kongs new digital banks is wooing customers with a 6 introductory rate for deposits. That is one of the eight firms preparing to start digital only moretions in the city, 3 than traditional lenders. Sign of the move is a increasing competition in banking. Yvonne china will not make major cuts for new energy vehicles. The report on China National radio said a minister of industry and i. T. Is saying the subsidies will stay relatively stable this year in a bid to ensure sustainably industry growth. That is a boost to electric carmakers. Sales fell for the sixth month in a row. Goldman sachs plans to double its headcount in china over the next five years. We have been told they are reducing staff to 600 employees provided china continues to open up its Financial Markets. Bloomberg intelligence estimates up to 9 billion in commercial and Investment Banking profits for foreign banks to compete for. Jp morgan, ubs, and nomura have announced chinese extension plans. Rishaad lets have a look at whats going on with asiapacific markets. The absence of trading in tokyo. We find ourselves with the members of the rank return function. The limit for the Semiconductor Company that put one of those stories which yvonne was just looking at and was concerning ev subsidies. No major subsidy cuts expected this year, helping to drive the likes of them as well. Down 5. 7 . A, 9 20 9 p. M. In new york and i am su keenan with the first word helen headlines. This monday. Ding a volcano south of manila may explode may explode at any time. Recommending an evacuation. Continues with all slight suspended at manila airport. It is a tourist attraction and one of the most active tornadoes in the philippines. Expecting to boost the markets. The election will extend the positive sentiment and give at least a shortterm lift to stocks. Wind energy has gained on the expectation of government support. Slide. Tocks may rights said hean has been given no official reason for being denied entrance to hong kong. Thead plans to launch annual report in the city but was stopped at airport immigration and turned back to new york. The focus of the report this year was going to be how the Chinese Government is trying to undermine the system. To suppress the rights of people at home and undermining the ability of anyone else to hold china to human rights standards. Finally, protests we appeared in thailand at the Prime Minister claimed victory in a disputed election. Thousands gathered in a park in bangkok, demanding more political freedom. They denounced the establishments traditional hold on power. U. S. Economy. Der Steven Mnuchin and says they could trim half a point from gdp this year. We expect growth of 2. 5 . Stimulusrvers say the is starting to fade. Predicted we surveyed 1. 8 . Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im su keenan. This is bloomberg. The session is about to narrow down. What are we looking out for . A slightly more positive start. Indication of the start of the trading session. The weakness of the trading session began. Making now we are anticipating levels. , they are taken down being put in place. The banks are going to be in focus. Muted. S session is on an operational basis, it was underlying. 10 to 10 per 5 10. 5 . Yvonne thank you. The latest out of mumbai. We are talking about inflation coming out later on. This rise on oil prices is adding to the threat of inflation in india. 6. 7 , whichecting would mean blowing out that target range for the r. B. I. Take a look at rates in asia. Data 8 00 hong kong time this evening. Lets get to our policy reporter. Is this spike and inflation a concern for the r. B. I. Or is it seen as a oneoff . It is a little bit of a concern because the First Time Since it was constituted in august and september, the headline inflation will be well above the 6 stretch target. 6. 7 as well above. The primary reason for that is higher. Signs that prices have come up. Oil prices have shot up. That will feed into both the headline and inflation in the coming weeks. , but not an easy time those cuts have gone into the economy. Tois up to the government stimulate the economy. Tell from then underlying price pressures. What we are seeing, is that putting more upward pressure on prices as well . After an easing of the past few months, we see inflation being pushed up. They have already warned that is likely to be the case because Telecom Prices rose that month. The impact will probably come into the inflationary pressures. Will also health care reflect that. Week, the Indian Economy is not growing more than 5 , way below the potential of april. The negative output will cap inflationary pressures. We will see core inflation push up and demand pressures, but will actually cap it. What about industry . We saw a much bigger it tension than anticipated, but if we look at october, that was revised lower. People are suggesting that there is a trend in one month numbers. One does not make it right. Ofer three months contraction, industrial output has pushed up. That is the good news. The bad news is that the sector within the production is listed as contracting. The economy is in investment phase. The rise in capital that is not happening. It is being reflected in the output number from the trade data. All in all and all, the production numbers are slightly optimistic and we will have to hold our horses for a trend like that emerge. Yvonne thank you. Coming up, we will be live at the Asian Financial forum, where we speak exclusively to the department of finance international head. This is bloomberg. Market. You are back still working through parliament this week. Graceanchor, david and yvonne . He is at the david english. David. I guess as a side note, a lot of the countries are present here, really trying to relive. We start with the big story this week. By the headd here of International Finance division. When did you get in . About two hours ago. We had a very Good Relationship the last two or three years. Our minister launched it here in hong kong. Exercise. An story. Elling the good the pitch is, we are doing very trying to take Innovation Technology a step further. Very highly educated break. Benefits coming in from hong kong or china. We are better. We are very nimble all the time we dashed time. We have completely reinvented ourselves. It is a very good place for business. They successful. David what is the fiveyear plan . Remind us. Minister is out here in september. Is, we have done very well. We have to look at what we have done very well. It is just to keep it fresh. If we do not continue working, it is changing so quickly. What we are trying to do is keep raising it. This is very competitive. David you look at what the Hong Kong Government is doing. You see what they are trying to incubate here. Specifically in ireland, what are you doing with that talent . We are doing something very similar here. Very close connectivity. Trying to get the thing together. That is why we are here. A bridge between two countries. For you guys, it almost cuts two ways. In the months after the initial referendum, dublin was one of the places to talk about it. Going back, to what extent did that story actually happened . We have done very well with a number of projects. We have got a lot of people and northfrom china america, australia, all over the world. Has been across all of the areas, data, etc. We have done extremely well. Is that stable money or temporary money . More stable money with highend jobs. We are trying to build for the future. They are good quality, very high. David we will finally get brexit, so we do not know how that looks. We do not know how the relationship will can out as well. Bythe scenario is to have it january, to come up with a flexible deal for both side at the end of next year, at the end of december. We want something that is fair to both sides. Welldoes well, the eu does. David do you think the u. K. Will get the same deal that they had previously . Can all help that it will be fair and reasonable. It will be difficult. They cannot have the same rules and regulations. The eu was a big market. David to wrap things up, longerterm, you do not know what that will look like, but it dublin, in london, frankfurt and how do thoset, things get together . U. K. ,tever happens with the relationship is very strong. No matter what happens in the city of london will still be there, will be vibrant. A lot of people going back and forth. Have 500 set up in the last year. Parisou go to places like etc. We think that we are wellpositioned. David it seems looking at the other side of that, it is almost like math. Is there enough to go around . Only started off and looked go back to, it might north america or asia. We have a lot of those jobs there. We think we are well positioned. Comes in, you can get 20 of jobs done. U. K. Is still wellpositioned as well. We like hong kong as well. We will do well for the future. David is there a job that you see as naturally migrating twoyear part of the world . It is possible. A lot of them just coming in. Really, it is one of the big ones. David how long are you in town for . Three days. I imagine he will be in touch with a lot of chinese investors. Very hardworking a lot of meetings looking at ireland and eu. We will try to get the two of them to marry together. David can you share with me any specific chinese names sending money your way . I would like to, but no. David if i had to ask you what is the honest answer . We are a small and open economy. Trade war and an open economy. We would get a cold first. Great next three days. Departments finance. Back to you in the studio. Rishaad thank you very much. We have a lot more guess coming up. Yvonne david mentioned about the offshore women be. Somes we speak, so seeing decent games. We will have more from the conference. Equities. F china plenty more ahead. This is bloomberg. Yvonne the International Agency says it does not see Oil Prices Rising significantly right volatility. Limiting demand and the prospect of more crude coming onto the market. For example, 200. We expect it. Of oneill be a surplus Million Barrels per day looking for buyers because production is going from the u. S. , britain, norway, a lot of oil coming into the market. In a normal world, i think the among gas will remain those levels. You think it would be 60 to 65 . If there are no major that ited, i do not see will jump very strongly. There is a lot of oil in the markets. The market is not very strong as well. Manus he said he is expecting robust demand. Talking about a good start to the year. It is strong, depending on who you are, compared to recent years. Higher than one Million Barrels per day. Compared to previous years. Lets dig a little bit deeper. We are having an opec eating on march 3. Do we need a rollover of the new deal . Do we need saudi arabia to kick in the extra barrels . To countries to decide. I need to tell you something. The rules of the game are changing. Includes thenamic practice. The iea director with manus cranny. A look at the latest is this flash headlines. Split and a fallout from the carlos ghosn dramatic escape to lebanon. Includedry talks engineering and manufacturing, as well as the new board of directors. Chairman holding that is why it needed to be replaced. Yvonne james bonds favorite carmaker. Asy are in talks as well receiving 260 million of investment from the canadian billionaire. Chinas technology is also breaking headlines. Reports. We have you on very much in the mix. Yvonne we see that strength persistent. The dollar, the First Time Since july. We are getting close to the signing of that phase one deal. Dollar weakness may be contributing to these moves. Hi our. Tom mackenzie conference. At the we will be speaking to the president of the business. We are talking to him about the opening of the Financial Sector and the chinese economy, trade tensions, what they are doing to fend off competition from the wall street banks. Plenty more ahead. This is bloomberg. It is almost 11 00 in singapore. Haslindaa almond amin. Rishaad we have the emphatic taiwan victory. Andtourism side of things we will be talking to the chairman of the hotels. Stepping up expansion plans in the mainland. A Financial Sector opens up. We have lived at the conference. And bringing down the bar. We speak with the tie finance ministers thai finance ministers. Haslinda, have japan shut for a holiday. Ash ando spewing thick threatening eruption. Take a look at the index. Higher by. 5 . Doubting that ukrainian jet north korea saying it will not back down in terms of its nuclear program. Up by 1 . Lifted by electric carmakers. N taiwan, up the level that we saw back in middecember, after a landslide victory. Market is thee 20 gains that we saw in 29 is pretty much as high as you can get. Expressed. Lets take a look at where we are in terms of current. The one to watch. Will show you past the dollar, the strongest levels since august. Taking a quick look at crude. Gold inching downwards. About 42 minutes to go before thing get underway in mumbai. Seeing good gains here. Looking at more of that, indicating to the upside. 10 year yields also slightly elevated. Well wait a couple of things here, this meeting coming up with the reserve bank and Inflation Numbers at about 8 00 this evening. Closely watched there. The backdrop for much better production news. Get over to new york and have a look at the first word news. Are going to begin in taiwan. Victory in boosting equities. They say it will boost positive likely, a bit in fisheries include biotechnology and wind energy. Tourism stocks are sliding over concerns that it will hurt ties with china and deter mainland visitors. Its ricknment admitted perry mistakenly shot down Ukrainian Airlines passenger jet last week. 737 was down the shortly after takeoff due to human error. All 176 people on board were killed. Authorities first blamed technical problems for the crash anen said in indian engine had crashed. Saying that missile strikes on iraq are only the start of the iv in response to the killing of general soleimani. Saying this is the first step on a long path that will force the u. S. To leave the region. Theyhave not yet used what called their sophisticated weaponry. Mondaypended trading on said tois volcano was explode at any time. They are recommending an evacuation of up to 200,000 people. To spewano continues ash and smoke. It is a tourist attraction and is one of the most active tornadoes in the philippines. Handling of protests and hong kong has many shortcomings. The investigation by the ofependent police has a lack communication and no clear guidelines for firing to gas. The report may be published early next month. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im su keenan. This is bloomberg. Had somewe just breaking news coming through. We talked about the offshore yuan strengthening 6. 9 rnb. It is the first time that currency has done that since august, counting the situation. Figure. The that is currently what we have. Apparently the most oversold in two years. Buy the yuan and sell the filipino peso. This is bloomberg. Rishaad you are back with bloomberg markets. Reports out of tokyo saying nissan is stepping up planning for a possible split from renault. This comes after Carlos Ghosns escape to lebanon. They say they held doubts about the alliance when he reported when he replaced carlos ghosn last year. Make majora will not cuts. Radio sayingort on that the subsidies will stay relatively stable this year with sustainable industry growth. Have beenarmakers interfering in another round of reduction. The rescue of to james bonds favorite carmaker. They are in talks. Receiving 260 million. Have beenrts subsequently withdrawn or denied by the contemporary technology. Apparently they were mulling a stifle for the past 12 months. Lets get to thailand. Thousands of people joined a rally to protest against the military backed government and called for more political freedom. Lets get over to the forum and ask david. Does not bodee well for the economy, which is already reeling from a strong bond. David yes. Story to aps the lesser extent than last year. People reporting with the finance minister. Good morning. Thank you for coming on the program. Lets start with one subject. The currency. Biggesthat is the problem is causing for you . The export. That is natural. That high export would be affected by the currency. At the same time, having said that, there is another side of the coin, which is important. Supportive of technology, import, machinery and so forth. , there isort side impact there. David how you seen a lot of evidence of the advantage . We are starting to. We are seeing in terms of the supply chain, investment for the region. Also, in part due to the relocation of production into thailand, where it would start to invest in machinery and so on. That is what we are seeing right now. David we were talking during the break. Primarily, it is the bank of thailand who receives the currency. That does not mean that you do not have a role in it as well. You talked about certain measures that you are prepared to take. What would those measures be . Withey consult regularly bank of thailand. That is by law. Having said that, the bank of thailand has already come out that it to the effect has probably risen to fast, relative to thailands fundamental, at the moment. Believeis the case, i that we need to address and publicly rebalance that, as the bank of thailand has come into. There are measures that we can rebalance it a little bit. What might those be . , we can stimulate investment, Outbound Investment from china. It could be one or other measures. I can assure you that nothing would interrupt the market mechanism. That hasis is a story played out from last year. Here, you think we are getting to the point where you might need to start doing . Back to the rule. We are in the process of consultation, to see what measures that we might send for introduction. The part that is directly under your purview is raising money. You and i were talking and we cannot remember the last time that thailand issued it. Sure. At the moment, we have not really address that possibility yet. We are not counting out anything. We can do, andt we will do it within the framework of investment. You know that thailand has a top priority. Investment, therefore funding and financing. We are looking at different options of financing bigger projects. Transportation, infrastructure and industries. David what is the forecast for your budget deficit . This year . It hardly reflects, which has just passed the parliament a few days ago. We are confident that we will hit it. It is in the range of 3 . With what we are maintaining. Chief inr bureau bangkok asked me to ask you this question. In order for them to take their money out, a country, casebycase approval. Is there a point where they no longer need casebycase approval . That, to looking at tell you the truth. We have not made any changes at the moment. David in terms of establishing a yield curve for the dollar issue as well, this is back to whether you might are one as well. They cut the dollar bond market. With that alone be a consideration for you . It could be a consideration by itself. I would point out a key point is that in terms of managing the currency it would not be a single measure. Is the economy in a better place now than it was six months ago . I believe so. Of example, in terms domestic consumption, for the past couple of months, we have seen improvement in terms of domestic consumption consumption. We have to look at that. The domestic economy is showing better signs. David very quickly, growth forecast for the year in about 3 . Self in the range of about three. David we will be coming back to the program. That is the finance minister of thailand. He will be back. Rishaad thank you for that. Lets take a look at what else is happening out there. We got Global Financial giants from Goldman Sachs and jp morgan announcing big plans. Bloomberg intelligence estimating for foreign banks to compete for. Lets get you back to the Greater China conference and tom mackenzie. Thank you very much. I am pleased to say that i am joined by the president. Thank you for joining us. Banks are street investing aggressively. They have somewhat of a head start. To what extent does that potentially curb your opportunities in the market sue we have been here earlier. We are ready for a. In fact, we were the first among the foreign firms have a majority sector. Grow. L continue to we envision starting by 2022. Ofthe evolutionary process the opening of the Financial Markets happen in china, it is important to be here. Banking,t investment Wealth Management or Asset Management . All three. This is our business model. Money. Ke their some are still private companies. Listing and all the way to managing. We have very well integrated that way and very happy about the growth. Tom what are some of the key challenges of expanding that network . Policy ideas do not get transmuted in terms of making activateas you go to these policy changes in the market. To gete to be patient things going at a faster speed. Tom how much Additional Capital are you willing to deploy in the coming years . We are never short of capital. We are always therefore. Just to quantify the size of this market, at what point do overspread . T to it will take a wild. Appreciate that it will meet its turn of going first before it truly opens up. We are not seeing that signal yet, but we are seeing a lot of push and to go about Wealth Management is this. Willhe early signs, it take a long time for this market to be bigger. Especially in terms. It will take a wild. Data suggesting that things may start stabilizing. I have any to call a bottom to the slowdown smart are you feeling more positive . Gdp was around 6. 1. If they complete phase i as planned, we are up to about 6 . You have to take into account that it is a much bigger economy now than it was four to five years ago. I do not to get to 7 , think that is realistic. It will prove a catalyst for some of your client . The first in terms of substantially making a different, it will not make much of a different. Negotiation. Reat there will be moments of clearal and moments of understanding of each other. Talkingas they are both , we are going to see some changes, facetoface. I think it will be in perpetual motion, rather than anything binary. The know, stayin close to it and look at the development, ip rights, etc. ,om when you look beyond china where are you most excited about in terms of delivering Revenue Growth . There are a few regions. The business will continue to grow substantially. Because of the supply chain , theys and disruption have some ways to go. India will be much better. Asia, we have a lot of bufferlity to actually some and increase others, but at this moment, i am quite bullish on indonesia and also on vietnam as well. Tom who are the laggards . Aboutis not nice to talk that. Tom how would you characterize sentiment . Hong kong is very resilient. If you read the media headlines, the slowdown in retail and hotel stays is quite worrying, but tourism is only 5 of gdp. In the finance market, have not seen any funds not seen any transferred out. It is a hedging strategy. At this moment, funds are coming up from hong kong. Tom do you think the rally that have seen can be sustained sustained . I think you have a loss of the 20. I think people are looking for the right investment. There are also breaches in industry, consumption, china is a big consumption story. There will still be a low investment in equity and also investment in the bond market. Onward, the funds from our investors is actually picking up significantly relative to january last year. Much fork you very your time, joining us live at the conference. More guests, coming up. With thenzie president. We will have another big gift from the conference later this hour. This is bloomberg. Haslinda live pictures of the city. We are in the middle of the trading day. 3255. Leveling off the session after the disappointing numbers. Having an upswing. Reaching a new quarterly high. We are talking 5 million. Posting a 91 average. Is a record dating back to 2008. Some business events being moved here from hong kong. For now, lets get to the first word headlines with keenan. Su we will start with china. Withcredit for small firms 300 billion dollars worth of nonperforming loans in the past year. The shadow Banking Sector has fallen from a peak of 2. 3 trillion. Businesses are seeing high risk and trying to prevent credit from illegally entering the property market. The head of Human Rights Watch says he has been given dull official reason for being denied on sunday. Planned to launch the annual world report this week but were stopped at the airport immigration and turned back. Pledge tothe sanction. The focus of the report was going to be how the Chinese Government deliberately undermined the human rights system. It also undermines the ability toanyone else to hold china human rights standards. Protest we appeared less than a year after the former general claimed victory in the election. Thousands gathered. Fairnessd questions of. Finally, australian Prime MinisterScott Morrison says the country must become more aware of the impact on Climate Change. This as bushfires continue to burn out of control. He admitted that global morning Global Warming is a contributor, but they cannot do much more to cut carbonate carbonation. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im su keenan. This is bloomberg. Haslinda lets take a look at the markets. Investors with those disappointing jobs data. What that means for monetary policy. Timeline leading the pack. After a berongest election landslide victory. The hang seng up by. 8 . Won showing with exports up 5. 3 . Rishaad absolutely. Lets go quickly. We are minutes away from the start of the trading day in mumbai. Could beains and adding to them with fresh, record highs. There, thes inflation number cpi. It should give an indication of what the r. B. I. Might be doing next. Haslinda lets get to the philippines. Volcano after a sudden eruption of ash and team that forced bridgers to flee. Lets get an update. Joining us on the phone from manila is the finance secretary. Good to have you with us. I know that the philippines are bracing for a hazardous eruption. How prepared is the country for that . Me. Hank you for having first and foremost, we are responding urgently to the needs of those directly affected by the volcanic explosion. Thenumber one priority is safety and security of the families and families. Evacuation started yesterday. Infrastructure, social welfare and Health Agencies supporting local government. In there locations province and in the surrounding from since last night. Wellbeingensure the of broader areas affected by asphalt, considering the direction of the windows. Winds. Yes. Is morning haslinda it might be too early to assess the cost of the damage. Do you have any estimates out there . Are you concerned that it could weigh on growth for the year . Have anynow, we do not assessment of the cost, however, we have in place a Catastrophe Fund that can be triggered by a one in 19 year event that could be the aftermath of the irruption. Corresponds to about 11 billion pesos. To the 1990 similar earthquake. We are prepared financially to handle any damage from this eruption. Rishaad give me the sense of how much money you are putting aside in the Emergency Fund that this has created. We have at least 50 million already set aside, but we do not is anywhere number accurate. We have this ready at the moment. Rishaad what about the human cost . Thats fundamental. What are you hearing about lossoflife and displacement of people here . As of now, we he no report of any injuries or deaths. , upwards oforning 10,700 people were evacuated and are now in 45 evacuation centers. Classes and work have been suspended. We have received reports that operations remain normal. Flights are certainly not coming in and out of our main airport in manila. Haslinda excuse me, dominguez. Do you expect more flights to be suspended . Has been moment, there. O lifting of the suspension although some of those flights have been suspended as well, i know that other flights coming last night were diverted. Rishaad thank you very much for your time. Carlos dominguez on the line. We will go back to this conference taking place in shanghai. Tom mackenzie is standing by to. Alk with our next guest tom. Thank you very much. I am joined by the chairman and advisor. Scientific explain to us what it is they do. What is the focus for your company . Thank you for having me here. T is science driven we are about 18 years old. Development,ars of we got our first product approved in 2018. It targets hiv. Chinas first new hiv medicine. Tom what is the demand . Hiv as an issue is clearly a focus for your business. How much of that is demanded driven across china . What other areas could you tackle . The program, the government has achieved a lot of success. But weng free medicine, also see a continued growth of it and people. Patient needs to take the drug for their life. When their treatment continues, there are a lot of complications. They are a very fast growing population. Safer and more convenient to use. Tom what other drugs do you have in the pipeline . Drugs. Ave two other both are in phase two clinical trials. Scientistsated with from the rockefeller region. We combine that with our currently approved drug to make our own injectable form. Hopefully, we do not need an oral drug, so the patient can be taking the drug once a month or every two weeks. There is another drug that we are developing in this area. It is a patch for pain management, cici treating musculoskeletal pain. Tom how do you ensure that you avoid those kind of issues . We are moving into china and the u. S. The problem of the current drug thection, it is because of current medications, especially the strong ones. Opioid. Cations contain it is like ibuprofen, but ibuprofen, we know that if taken orally, it can create a lot of g. I. Tract complications. We made a patch that you can apply it orally. It will lower the concentration and make it a lot safer. Tom i want to talk about the price controls we are seeing put in place. How is that affecting the business and aspects for you . A they are undergoing significant historical change. By of the challenges taken most companies. A large price reduction required by the negotiation specialist. We see that there is an opportunity. Both sides have a common goal, which is to provide new medicine the more patients. Focusing on this aspect. For thether side, government or for the national program. Ment, this they can only accommodate a certain number of drugs. For the company, we have to consider the cost and development of the drugs. They were advertised not only in china but other countries. You have to consider the International Price system. When we first launched the drug in china, so that they can benefit from using these drugs first. We want to contribute to society here. Policy, there new will be more frequent negotiations. A new drug more rapidly into this program and into more patients. You follow the ipo. When do you expect that ipo to happen . Have you looked at jurisdictions like hong kong . Yes. Certainly. We are looking at all possibilities. First, we are a china based company. China could probably have more influence. Also, star board has those pretty high. Being part of that, it would probably give a higher status than some other boards. Trade. The, the it will be better than other markets. See. Ully, we will when we are ready, hopefully the market situation is still good. We are working hard. Thank you very much. The founder and ceo talking to be here at the Greater China conference. There, talking to their investors. Taking a look at what is going on elsewhere. The cpi to jump above the upper end of the bank of india target tax. We should see that driving things higher because of the prices of onions and other vegetables surging higher. Predicting it will clear the way for inflation to ease in the months ahead. Lets get to mumbai where the markets have just opened. We are standing by. A record on friday. What are we looking at today . Record in the opening session. Reading around 315. It feels good because we were covering nearly 400 point in the last few trading sessions. There has been a sharp recovery. The focus has shifted. It should be underperforming. We have seen some contribution leads in as the index with gains of about 55 points. The industrial output for the what of november was about we were expecting. Thee was contraction in last three months. Also tracking cpi inflation coming out today. Tell me about emphasis on positive earnings. Yes, positive earnings. Tot is in regards whistleblower complaints. Numbers were in mind. They have increased their revenue guidance. Just lookingn line at the overall with regard to whistleblower complaints. Open on the positive seeing gains of about 2. 5 . Announcing the gap of almost 25 . Has opened in positive territory. Across the board, they have registered good growth. Up and managed to report expansion. We are seeing positive reaction. You. Lets get back to one of our top stories, concerns over the landside election for the president of taiwan. Reinforcing a winning run. Our correspondent Stephen Engle is there. It was a resounding victory over the weekend for the incumbent president , winning a second term, beating her challenger. In the legislative council, we saw the opponent gained a little bit more ground. The economy here in taiwan has been doing very well. Does it have the legs to continue its momentum into 2020 with the incumbent winning . Lets get some perspective from the man who owns the hotel we are in right now. He is the executive chairman of the hotel group. Thank you so much for having us here at the regent. The election came down to china relations and the economy. You are quite bullish on the economy. Do you think that had a large sway . Yes. Most people treat hong kong as the reason why she had such a huge victory. Government has switched to a very progrowth policy, coupled with u. S. China trade war that forced a lot of Taiwanese Companies to relocate their facilities back to taiwan, this has actually accelerated the Economic Growth in taiwan, at there were 25r, billion u. S. Dollars in investments recorded. In 20 tohe first time 30 years that there is a reversal of capital flow. Believe this investment from Taiwanese Companies, shifting the supply chain for the u. S. Will continue to benefit taiwan. Tigers forerform the the next years. They did it for the first time in many years stephen they did it for the first time in many years. Fromre also getting influx elsewhere like south korea because of the south korea and japan dispute. Yes. The majority is about the trade war and implication of the the u. S. Based supply chain. These guys will have to diversify. Productions and especially the highend to taiwan. Of course, you correctly mentioned event between japan and korea, even a little bit of hong kong as well. The government has repositioned hong kong. Management for taiwanese. Benefiting, the reversal of globalization into the coupling era. I believe this is the golden age for taiwan. We saw a when of two election. This time, it was resounding rejected. How do you see the differences in their platforms, as far as aligning more towards the mainland . You had a huge influx before the crackdown. The influx was good for the economy, but now that is cut off. How damaging is that . Good question. It is aligning with china, engaging china, so the fact that taiwan was aligning with china, that was positive for taiwan. Globalization engagement has taken a different tone. Taiwan, thear that politics and economy this shows it is on the right trip. Prepare ism perspective, they have tried hard to diversify its source of tourism, so even though the chinese tourist has dropped dramatically, it has been made up by koreans and south asians, which the government is trying to develop in these markets. The new factor will be the increased as travel. That has been on a declining trend for the last 30 years. Due to this realignment in andnal capital multinational corporation, realigning themselves for the u. S. Supply chain, we are seeing already a big increase. You are calling it the golden age for taiwan, but if the ,hinese tourists are cut off how do you see retail spending . Eing affected in your business . Re you able to keep it high dynamic of the taiwan hotel or industry is more oversupply. There is increasing demand, but so many pitiful hotels have been built because these were the decisions made at the peak of chinese travel. We are more affected by oversupply. However, in terms of retail kong,ng, unlike hong where the majority of spending is by chinese tourist, the retail spending in taiwan is probably 95 domestic. Affected by the chinese tourists. Stephen how about your plans to reinvent . Sold to anut he International Hotels group. They had big ambitions for the brand and you have cap told of this hotel and all the hotels and taiwan. We did that deal because we want to return regent back to hong kong. Regent hotelsew and residences building around silks andd also, our brand are having major reactions. We have a hotel brand called just sleep. All of our brands are going to japan and expanding broadly. Stephen thank you for having us at your hotel. Entering the golden age. Back to you guys. Rishaad the executive chairman there joining Stephen Engle. Coming up later on bloomberg daybreak middle east, the team will be back talking with the Democratic Progressive Party legislator. You can catch that interview at 2 30 p. M. 2 30 p. M. In hong kong and singapore. Haslinda looking at a live shot of the country, feeling the impact from the volcano erupted more. Secretary saying that they are financially prepared for the damage. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Yousef our top stories this morning. Across iransts after the government admits it shut down an airliner. It has triggered condemnation around the world. Mustf President Trump hope beijing will deliver on the pledges it has made. Tracy the uae is to invest almost 23 billion in indonesia. The money will help fund a new capital city and infrastructure elsewhere. Are warned thousands to evacuate as a volcano bursts