Expectations opec will extend output curbs. China Energy Giants report later. Haidi apple fans counting down to the iphone x. Apple asking chipmakers to double capacity. Right, we have Energy Companies in china reporting. I want to bring up a chart, 80 to 96. This is petrochina. This is the biggest destruction of shareholder value in history, and it could take more to convince analysts the stock has hit autumn. Peaked on the first day of trading 10 years ago. Check it out. It has lost 800 billion in market value, i enough to buy italy,isted company in or circle the earth 31 times with 100 bills. Many analysts think the pain may not be over either. In terms of a broader picture, we are looking at a event risks. We had that positive gdp print out of the u. S. On friday. This week, fed leadership and the fomc meeting, boj, boe, china pmi and Inflation Numbers to paint the picture of whether we are getting sustained Global Growth. All of this for Bond Investors to contend with. Lets get over to sophie, generally an upside in asia . Sophie we have asian stocks climbing for a second day. Climbing the taiex over 1 . The Global Growth story intact. It looks like juice from earnings season could lead to Companies Ramping up capex. A pickup in Business Investment is like the fountain of youth. The taiwanese collar dollar gaining ground. The kiwi under pressure amid chatter of the rbnz mandate. The aussie dollar facing losses, but a pickup in the aussie bond market. Auctionst 10 year bond times whats of 6. 5 was on offer, so perhaps investors shrugging off domestic politics. Treasury yields picking up, the 10year above 2. 4 during a critical week for bond traders. The oil patch in focus with brent above 60 for the first time in 2015, and new york crude trading above 54 a barrel. A quick check on taiwanese tech shares after iphone x preorders sold out in minutes. Has asked the suppliers to double capacity. About ald allay fears lack of demand. Printed Circuit Board makers climbing, now in talks with apple or next year supply. They have been the backbone for the taiex ascendance. J. P. Morgan cautioning that taiwans equity universe is looking increasingly unappealing. Today the taiex getting 1. 1 . Rishaad nice one there. It does not have the epithet of russia gate, but could. Lets get the rest of first word news with paul allen. Paul President Trump has unleashed a flurry of tweets attacking Hillary Clinton and the democrats has reports they a grand jury has approved the first charges in the rush inquiry. The indictments are sealed and it is not clear who is implicated, but it is reported the first arrests could come monday. The president tweeted against what he called phony collusion and accuse the democrats of a witchhunt. The United Nations atomic watchdog says iran is complying with the nuclear deal and calling on all parties to abide by the obligations under the 2015 accord. President trump refuse to recertify the deal two weeks ago and washington has impose new sanctions on tehran. Theident rouhani rejected chance of talks last month on the sidelines of the United Nations general assembly. Theippine president says u. S. Should stop threatening north korea and reassure kim jongun that there are no plans to force him out. He says the u. S. , japan, and south korea should tone down the military rhetoric and try to talk to the north about its nuclear program. The president flies to tokyo today for talks with Prime Ministers shinzo abe, north korea and trade on the agenda. Gathered demonstrators in barcelona as separate as lawmakers rejected madrids proclamation of control. The Prime Minister has dissolved the Catalan Parliament and put the administration into the hands of his deputy and called elections on december 21. The next test comes monday when Catalan Government workers decide whether to heed calls to strike in favor of independence. Indiast lifting market. The carrier is talking to a about orderingy 100 amphibious kodiak planes. We are told the deal would be worth 400 million. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. I am paul allen. Rishaad the race to be the next fed chair is coming into the home stretch after President Trump put out a video saying he will announce his decision this week. Kathleen hays is in tokyo with the latest. What did donald trump say here . It is not just what he said. It is also how this was presented. If you go to our bloomberg website or your bloomberg terminal, find the story about donald trump and there is a link to the video done on instagram, very well produced, tweeted out to 41 Million Dollars tsonga decision is coming in the week ahead. Lets listen. I will be announcing it sometime next week. It will be a person who hopefully will do a fantastic job. And i have somebody very specific in mind. I think everybody will be very impressed. Have course we pretty much this down to three people, especially after our Bloomberg News team in washington over the weekend spoke with people familiar with the matter. They say right now trump is leaning towards Jerome Powell, current fed governor. He has not made up his mind yet. There are two others who might have a chance. Spent many years in banking and worked under republican administrations. He is the man in the middle of your screen. Is janetr left, that yellen. She is the current fed chair, who according to our bloomberg reporting structure trump has very polished in their meeting a week and a half ago. John taylor, author of the morer rule, who is perhaps hawkish, but wellrespected in monetary circles is also on trumps list and impressing the president. One thing you should not expect is that Stephen Mnuchin told reporters over the weekend that it will be the fed chair decision alone. Dont expect the vice chair nomination as well. A fedu know there is meeting this week that wraps up on wednesday. There is a 0 chance of a rate hike right now. We will watch the policy statement to see if it gives us clues that the fed is leaning towards that and getting ready for a rate hike in december. Thirdquarter gdp friday 3 beat the forecast of 2. 6 despite the hurricanes. Unfortunately when monday rolls around and you get the personal income and spending report, you may see the key inflation gauge stuck at 1. 3 , far from the 2 target, so the fed is probably hoping the friday payrolls report will be strong, validating expectations that growing jobs will boost wages, and that will boost inflation. Are in tokyo this week covering the boj. Are we expecting any policy tweaks . That is the best way to put it because inflation is so far from target. They cant do much in terms of real policy change, not yet. They can look at their inflation forecast for 2017. This is btv 7942. The white line in this chart is the core cpi that takes out fresh food. That is the boj key inflation gauge. That horizontal line is 2 . Of can see the actual rate inflation is so far from target that there is some expectation that the boj will dial back on its 2017 core cpi forecast. Who knows where, but probably lower. Not much time to get there. Obilephone prices are falling that helped to drag down inflation in the u. S. That is happening in japan. Tighter labor market, weaker yen. That will probably justify faith that inflation will head to target. Along with that retail sales report today, 2. 2 year over year. Fromt revised to 1. 9 1. 5 . Consumers are spending, labor markets are tight. This is why the boj is confident that sooner or later they will meet their target. This is what people will be listening for in that press conference after that decision. Election win by shinzo abe, governor kuroda is probably more confident. Haidi he is likely to keep his job for a while. Thank you for that. Still ahead, oil prices hitting a twoyear high. We will look at whether there is any headroom left. Rishaad volatility at record lows and stocks at record highs, what are the biggest risks in the market . We will get socgens take right after this break. This is bloomberg. Haidi this is Bloomberg Markets asia. I am haidi lun in sydney. Rishaad i am Rishaad Salamat in hong kong. West pack will contest challenges of rate rating. The hearing will start tuesday. The settlement will be felt and its 2017 results. They will pay the regulators 20 million and donate 20 main dollars to a Consumer Protection fund. Subaru has apologized for allowing uncertified inspectors to conduct quality checks on cars for decades. The company will submit a report to the government later monday. It is expected to recall 250,000 vehicles across the entire lineup. Month nissan recalled one million domestically made cars because of a similar failure of certification. The inspection has been complicated, but it is true unauthorized authorized inspectors were involved in the quality process for more than 30 years. What is most important is we never questioned our system for three decades. It is now time to rethink what is most appropriate and clarify our future inspection policy. Rishaad cobre steals bond risk at a twoweek low after the company said 80 of customers have confirmed the safety of its products. Kobe steels bond risk at a twoweek low after the company said 80 of customers have confirmed the safety of its products. Asiapacific markets are generally nudging higher. That on the back of robust earnings and that gdp print out of the u. S. On friday. Today, results from hsbc on chinas big four banks, sinopec, petrochina, nintendo in japan, the big tech names. On top of that, speculation about the next fed chair. Donald trump will announce that this week. Boj also meeting this week. Socgens head of Global Markets australia to talk about all this. Feel on have a strong who should be the next fed at the head head of the fed . I think it is more theater than reality. Is thes like powell favorite for the Trump Administration to a point, which would be a continuity selection in the market would take it quite nicely. Selected, slightly more hawkish, republican, which could lead to a view that rates could go higher quicker in the u. S. Which would have an impact on the dollar. At this stage, at looks like powell is the favorite. Haidi how do you feel about this narrative of the synchronized Global Growth story . We have pmi from china and this week that should give us a better picture and neshek, but do you think it is a coherent recovery we are seeing . Boring might be the word to use about markets. The World Economy is going pretty well. At 3 , probably 2. 8 next year, fairly solid across sectors. Europe, we have always been fairly positive on europe going forward, 2. 2 this year, similar next year. , managing stable itself extremely well, 6. 5 . Japan, shinzo abe elected, boj hard toation, so it is see negatives rounds coordinator Global Growth strategy. Rishaad Global Growth and on top of that a stock market on fire. The msci asia index up 4 so far this month. Is that sustainable . The expression a rational is very littlere to suggest that the market is about to fall. Having said that, those who would beluation suggesting the market is well and truly overbought and hard to justify an acquisition of shares at current levels. Without to much on the horizon in the negative sense, it is hard to see it slow down. Rishaad absolutely. It needs to be fed the whole time by good news. We have a lot of it coming out this week, not just emi surveys out of china, earnings and Earnings Growth one of the key elements which has built this momentum up, so there is a lot of food for us to digest. The trouble is twoweek it indigestion . I think indigestion and a word would the death defined as complacency. The market is extremely complacent with regard to risk at the moment. The is reflected in volatility index at record lows, stocks at record highs. The market is not ready for a major shock against what it would expect. Where will that shock come from . Geopolitical . I guess there are some risk there. Muellerswith robert indictment of people around the russian hacking of the u. S. Election may trigger it. North korea is always on the horizon, but there is nothing in terms of macroeconomics to suggest this thing is about to end in tears. Haidi catalonia, you think this not creatend will systemic shocks or blur the outlook when it comes to the future . Escalates to violence on the streets in barcelona, yes, a different story, but at this stage, the decisions made by the spanish government, the calling of elections in december, fairly normal. It depends on whether it escalates on the street between those who are prounification and those who are proindependence. Haidi in terms of Monetary Policy globally, the fed likely to go in december, data dependent. The boj doing its thing. The boe is expected to move this week. I they getting ahead of themselves . Forhe market is pricing them to go, so it would be a surprise if they didnt. In terms of where the economy is, it is probably reasonable to see the first tightening coming out of the boe. They willdicated taper off and try to keep rates lower for longer. The fed is set for december, three hikes next year. I guess all the risk is about all that being wrong and sing higher rates quicker. Haidi closer to home, do see any real i think the opposition is making as much as they can about the disruption caused by this constitutional matter. In the end, i dont see any major influence. Haidi always a pleasure. Thank you so much for that. Coming up, hsbc revenue resilience will be the focus later. We will see how things look in the premarket session. We will look at the big china banks that rallied in the friday session. All that they names coming up this week. This is bloomberg. All the big names coming up this week. This is bloomberg. This is Bloomberg Markets asia. I am haidi lun in sydney. Rishaad i am Rishaad Salamat in hong kong as we count you down to the start of the trading day. The premarket session looking like this, a move to the upside, some decent tailwinds. Session. Ad an ok flyerp was on an absolute in the friday session. Expected gdp figures helping things along nicely when it comes to american markets. One company we are watching is hsbc. Analysts looking for strong numbers, loan growth in particular. Those results come out noon hong kong time, 4 00 a. M. In the u. S. This is what it looks like in the premarket come a moving to the upside ahead of those numbers,. 1 . Howfocus should be on Interest Rates will boost income and plans to return excess capital. Will they maintain their dividend as well . Adjusted pretax profits of 5. 4 billion expected there. That is what we are looking at a few hours to go, under three hours now. Haidi we will be live at the hong kong headquarters. Net interest margins also in focus for the big chinese banks. Hard in the quite friday session on the back of some positive results out of. Hina Construction Bank , thehas been the theme regulatory crackdown may be behind them, better Economic Growth will sustain interest margins and boost asset quality with that bad loan situation easing as well. And the Agricultural Bank of china as well coming out today. They have done well. , pricetobookd ratio at the highest level in two years thanks to that performance this year. Coming up, trump seeing red over the russian collusion inquiry. Taking a look at the latest twitter tirade. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. The high seas see their the center ofn hong kong. Lots to look forward to this trading week. We could get a new u. S. Fed head. We look at the fomc and Interest Rates as well. Boe expected to raise rates. Boj holding a policy meeting as well. This is all food for investors out there. This will perhaps decide whether we have enough momentum to go forward. The job report at the end of the week. Earnings center stage in the u. S. And china as well. Three out of four big banks reporting. Sinopec and petrochina out. Hsbc as well. There is a lot going on. Haidi so much to get through. Some of these big earnings in the u. S. As well, apple, airbus, a lot will dictate where this market goes given low volatility and questions over where this market goes from here. If you are a treasury investor, a pretty nervous session. Lets get it over to sophie with shanghai and hong kong markets opening. Gainingthe hang seng. 5 , rising for a second session. Chinese large caps looking flat. This week we are waiting on for october. Med is expected to moderate. Investors remain optimistic when it comes to the economic outlook. It is a heavy earnings day. Hsbc, sinopec, petrochina on the radar. Chinas big banks expected to report after the market close. Take a look at hong kong. I. T. Stocks gaining 1. 6 . Behind, butoo far property stocks on the back foot. The worlds biggest aluminum maker resumed trading, reporting improving revenue for 2016 come up it post a 55 drop on assets impairment. Shanghai snapping a sixday rise. Consumer staples the biggest drag. Materials also on the back foot. Keep an eye on chinese aluminum stocks after the u.