Short on details. Amid more detail permitted g. M. The latest company hit i the scandal. Betty we heard President Trump talk about tax reform and how it would be a boon for the average american. Also a boon for the u. S. Stock markets. He talked about how he has seen an unprecedented rally in stocks, based on his presidency. I want to pull up this chart, which i think is fantastic. It shows you how much the s p stocks have risen since trump took office. In thee has gained more timeframe he has been in office obama, and clinton in 1992, he is behind kennedy, bush in 1998, clinton when he was reelected in 1996, and roosevelt in 1932. Terms oft was huge, in how much market cap he has added, 4. 4 trillion. But that has to do with how much bigger markets are these days. Yvonne that speech in pennsylvania, President Trump the salesman came through. It was like he was on the campaign trail, once again. Emphasizing the middle class family. Some economists are still disagreeing on that front. Betty some are saying the math just does not add up. We did see the u. S. Markets continue to close. The rally heads the markets had higher. The s p up about 0. 2 . The dow, up 42 points. This should be pleasing to President Trump, the nasdaq up 0. 25 . Earnings season is underway. That is always uncertain right now. Not a great earnings quarter, at all. Yvonne certainly lackluster. Those numbers on wall street helping us, more pleasing for asiapacific. Nzx 50 pretty much flat. A turbulent kiwi is what we are expecting, we are expecting Winston Peters will make his Coalition Announcement sometime today. From theteady at. 7095 kiwi. In australia, aussie home loan data coming through in the next hour. 7796en pretty much flat, for the aussie right now. Treasuries Holding Onto Gains after the fed minutes came through. The nikkei 225 closing at the highest level since 1996. Producer prices coming out, as well. Futures at a higher level, extending the gains. 112. 48 for the dollaryen. Tupacsthis is when california love was released. Betty nostalgic, there. [laughter] betty President Trump kicked off a roadshow to promote his tax reform program. They were adjusting criticism his plan would only benefit the rich. And. Trump we will fight get those republicans and maybe a few of those democrats to raise their hand. You will have so much money to spend in this wonderful country. And this great economy. That is why we have proposed tax cuts that are progrowth, projobs, proworker, profamily and proamerica. Betty joe sobczyk joining us now from washington. As you are watching this speech, anything strike out at you . Joe way. Even in the aftermath of the fed minutes. Gold causing a bit of a bid. I am still in the instagram and facebook bracket. Lets take a look at wirp. We are Still Holding at 77 . Benefit. Eing banks across the board upgrades, it has to do with bonds. Lets go to g btv 8124. This is titled, upgrades and bounds. Higher bond yields around the world helping expectations. The optimism helped push the msci index to nearly the highest level since the financial crisis. Lets take a look at the companies that will be in the spotlight starting thursday. J. P. Morgan chase and citigroup reporting on friday. The focus will be on costcutting and fixed income trading, first and foremost. Also, the impact of brexit and other issues. Outlook is always one of the issues. Yvonne coming up, the fed on the fence. The latest minutes show a december hike is not as certain as markets believe. We get the view from a former fed economist. Betty just ahead, a look at key thirdquarter results to watch earnings season kicking off on wall street. This is bloomberg. Betty this is daybreak asia, i am betty liu in new york. Innne and i am in on may in hong kong. This is the earnings season. Lets get to Ramy Inocencio with a preview and the some charts that you need to know. Ramy a bunch of things came together that are proving to be headwinds for the financial industry. For example, hurricanes, low volume for the Third Quarter, and political uncertainty. Lets go to g btv 7991. Entitled bank hiring on the rebound, at least for now. Head to the right side of your screen. 035 Million People are employed, that is awful low. Hurricanes and ai and the impact, how was that going to impact things . In september, the jobs are poured hit a low not seen in 17 years. 33,000 in contraction. Will this go up or down . We will have to see. The second chart, g btv 4136. We are looking at bank lending slowing down, loan growth slowing down. It is already happened over the past three quarters with these companies that are reporting this week. We are seeing one of the big culprits could be commercial bank lending. Rbc and bloomberg calculations both say we could see growth of about 1. 8 . Twoallish rise in the past years. J. P. Morgan is in the white. We are expecting this to take up by 4. 5 . We will also see weakness in mortgage lending. Citibank in yellow, we are expect to fall. Right now it is 2. 2 in the Second Quarter, down to 1. 9 . Wells fargo has had its shares of downs and downs because of the scandals. 0. 1 is where it was in the Second Quarter, 0. 2 possibly in the Third Quarter. Lets head over to the third bloomberg terminal chart. We are looking at what is happening with trading revenue. The orange bars are the Third Quarter for 2016. The blue bars are what we are expecting for the Third Quarter of 2017. Across the board we are expecting this to fall on 3 billion for most companies. Jpmorgan a little higher there. They are blaming a lack of volatility. Third quarter, Second Quarter last year, there was brexit. Around the 13 mark. This quarter, around the 10 mark. Without ups and downs, traders cannot Pay Attention to it. As you said, it is just kicking off. Betty thank you, remy innocence you with the charts you need to know this earnings season, particularly on wall street. Is joining me with more on the earnings season. I want to pull up another chart that shows you the status quo we are seeing with banks, g btv 7763. You can see the green bar showing the return on equities, pretty much flattened out over the last several quarters, years, in fact. Far below what we saw for the financial crisis. If you look at this white line, bank stocks have steadily climbed higher. They say it is propelled more by macro factors, regulation being world back, rolled back. How much of these bad numbers are baked in to stock prices . Peter potentially a fair amount. Trading, 15 to 20 expected year on year because of the volatility of last year. That has been out there for a fair while. It is already put into the estimates. You are seeing and outflow in cni lending. It is a low single digit pace of growth. A lot of that is attributed to the fact tax reform keeps going in congress. Companies do not know what corporate taxes they will pay, as a result, they do not know what their plans will be. They have been hesitant to test the market. The improved outlook on Corporate Lending could be proven wrong. They outside of banks, entire earnings season looks to be, what . Peter potentially a little long. Predictable, to be fair. It is a pretty tough environment. Last year, just as we were coming out of that recession. That was the First Quarter we are coming out of the positive numbers again. As a result, expectations are for the slowest pace of earning growth. S p 500 expected to grow in the low single digits. Consensus puts it at about 4 . There are declines in discretionary and financials. Technology expected to grow into double digits this year. Betty amazon going to show up everywhere . Peter stocks continue to drive. Yvonne certainly going to be dominating the earnings calls. They have been going down the Third Quarter. What about the topline growth . We know what happened in the Second Quarter. Punish stocksts on companies that miss on revenue growth, and this quarter you have the weaker dollar, the hurricane effects, will markets be more or less forgiving this time around . Peter potentially less forgiving. Revenue is another area you see a slowing case of growth. The extent you have seen the trends build throughout the course of the year, we are rewarded a little bit by markets. Top of mind, we are completely punished by them. The Second Quarter reporting season, we saw average excess declines of 2 over the two days that followed the reporting. We are facing another quarter of scarce singledigit growth. Companies that miss again on the topline potentially face more punishment by the markets. Yvonne that jobs report on friday we started to see some indication of wages picking up. At what point will that start hurting margins for some of these companies . In september there were a couple upside stood inflation reports. We saw cpi in the middle of the month. Thate seeing some of appear in q3 reporting. Over the past couple quarters, Market Expansion has in a big driver of what we see helping the growth of the s p 500. But it is starting to crest off of it. Broadly speaking, see the wage pressure coming on. Potential he crimps that margin and slow the pace of growth. Peter, thank you for shedding light on this coming earnings season. We have big names coming up on Bloomberg Television. We are going to be live at the world bank and imf meeting in d. C. Where we speak to christine lagarde. That will be on bloomberg radio. Hear from the World Bank President at 10 20 in the evening in hong kong. Yvonne dont miss our exclusive interview with amazons ceo of web services. That is in the next hour of daybreak asia. This is bloomberg. Yvonne a quick check of the latest business flash headlines. Qualcomm has been fined 773 million in taiwan over how it prices mobile chips and patents. They say they have been violating antitrust rules from getting 13 billion in fees and not time. They have attracted scrutiny with investigations in south korea, china, japan, the european union, and elsewhere. Secondlargest insurer talking to banks about an ipo. Aboutre seeking to sell 20 of their american businesses in the Second Quarter of next year. 54 in a lieude a us in alias. Plans could change. Kobe steel in the headlines, amid warnings more faith data could come to light. This is bloomberg. Yvonne 7 30 a. M. Thursday in hong kong. Beautiful outside this morning. Started to get less humid. It is like the hong kong fall for us. Is 7 30 p. M. Wednesday here in new york. Higher, that again records. No stopping the s p, it seems. I am betty liu in new york. Yvonne i am yvonne man in hong kong. You are watching daybreak asia. s taxsident trump proposals, saying the outdated code is preventing american recovery. He told reporters in pennsylvania his reforms would kickstart the economy. He claimed to have increased the by 20f u. S. Assets trillion in the first few months of his administration. A new opinion poll in japan says Prime Minister shinzo abe is on track to win the snap election and may add to his current majority. He is expected to win at least 290 seats, while the new governor, yuriko koike, about 70 seats. His party was losing support ahead of the vote. Boss tells bloomberg he supports regulations that are smart, but is not impressed with proposals that make no economic sense. He says rules put in place after the financial crisis play an important role. He says he did not support time, and putting limits on the market does not help. I think the volcker rule was ill advised, and at best. I did not support that. There is nothing wrong with that, as long as they are regulating like everybody else. Their liquidity is important to the marketplace for the security of the marketplace. Questa builds scale is reaping rewards. Its business pulled and 52 billion in the Third Quarter, helping Beat Estimates for the quarters. In four they saw total assets under management surged almost 6 trillion. The stock is up almost 20 , compared to the s p 500. Taiwans exports surged to a record last month on Strong Demand on electronics and a rise in domestic optimism. Billion, the8. 9 most since july 2010. Japans to china and leveled. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am just the summers jessica summers. This is bloomberg. Yvonne lets get the latest from sophie kamaruddin. These minutes came out dovish, weaker dollar. Is highsis set for the we see in both markets. Sophie it trickles through into the asian session. Raging at the fed, if these forces are persistent or temporary. We saw the dollar retain losses throughout trumps tax address. The question remains, how is he going to pay for those tax cuts . The dollar looking to snap a four day decline. Lets show you how asia is set after fresh highs we saw on wall street. Contracts pushing higher for japan and south korea. The kospi reaching a fresh high. Watchdog rolled out the red carpet for funds. The nikkei 225 reached a high. 22,000 may not be far behind. Theyre expecting upgrades at the earnings season ahead, this october 22 election. We are waiting on september ppi data, due today. Betty shinzo abe may want to keep the stock markets rising ahead of that election. All of these have been trading for a little over half an hour. What is happening there . Sophie no fresh highs for the aussie share market. They fell for a second day. They are dragged lower by materials. Showing you the break down by sectors. Materials falling 0. 9 . Iron ore miners under pressure. The metal is falling. Prices dropping to the mid 50s. Aussie data, we are waiting on august home loans. The last check on an early mover is sydney. This one is jumping after they upgraded the Revenue Target above analyst estimates. That stock now up just over 4 this morning. Yvonne the latest scandal to rock the bank could go deeper than initially thought. Kobe steel has more cases of falsified data likely to be revealed in the coming days. The company lost 1. 6 billion in market value since the news broke. Lets get the latest from japans managing editor, brian fowler, joining us from seoul. Reports,about multiple there could be more products affected now. Or other International Automakers looking into this. This followed is really just beginning. Brian that is right. Last night we got one more product we had not been talking about yesterday. In addition to the iron ore powder, aluminum, target materials had falsified data. Blese are used for writea dvds. Many customers were affected by that. There is a possibility more will be discovered in coming days. This is continuing to expand and now analysts are coming out, including one in a few moments about the breakup of kobe steel. What are the prospects of that . Brian i saw that report by the jefferies analyst. Interesting, looking at the pieces of kobe steel, putting in estimation. His main point was, this is a buying opportunity. It is all hypothetical. He also lays out a possible scenario, what Companies Might be interested. We are also starting to see what customers are doing. A company that operates the bullet train between osaka in tokyo saw components supplied by kobe steel with a low industry standards. We will see more of those reports and coming days. Wety an interesting tidbit learned, Prime Minister shinzo abe once worked for kobe steel, decades before, back before you were born, in the 1970s. I am curious, given that affiliation, might any of that impact shinzo abe in these elections . An interesting point, it was between 1979 in 1982. He spent some of that time in new york. A very junior position, would have been very young. This predates the problem by decades. I do not think it will affect them. I have not seen mention of it in the local press yet. I think he can probably reflect that one. Deflect that one. On one of our favorite topics, bitcoin. Regulators and policymakers finding out how hard it is to control the explosive growth of cryptocurrencies such as bitcoin. President Vladimir Putin is the latest a call for tighter rules, are serious risks cryptocurrencies can be used for Money Laundering or tax evasion. That is a longheld view by the critics. Our live blogger help to write a story about this. Regulatorse moves by after china banned these icos. Latest and toughest moves by regulators in the sector have been by china and south korea and the past month. They both moved to ban icos. That is the mechanism by which startups can raise money by having digital tokens. The sector needs to be regulated. Generally, we have seen regulators from the central bank saying it is a sector then needs to be watched. In july the sec said some digital tokens will be considered securities, so they should follow those regulations. Betty it is like chasing jumping beans, is just so hard to catch. Once you try to regulate one part of it, more pop up or more problems pop up. How successful have regulators been so far . Camila not very successful. The reason it is so hard to regulate the second or is because it is decentralized. That is the way the technology was built, to be a network spread across computers globally. Even if you crack down on one jurisdiction, miners and traders and investors can move on somewhere else where regulators are more flexible. Another reason it is hard to regulate it was dealt to cut out the middlemen and regulators. Can keep working, even without a central bank or financial institution, or any authority. We see these Cautionary Tales even today where we learn about this one trade, somebody losing 70,000 in just one of those sales. Those are the concerns and why we do need regulators in the space. We see digital assets, we see things rally back again. Bitcoin hitting 4500