As you can see, futures up. Everything from india, looking at the dow jones futures. S p yesterday, a high. We will probably hit that if things continue. That is the risk on the markets. By the way, if you are just joining us about 10 minutes ago, a lot over in singapore. Companies, biggest joining us exclusively from that event taking place in singapore. Here down after the chairman resigned. Recedingmping, risks in terms of hard brexit. The latest on the protest herein hong kong. They vowed to continue their fight. Thearrie lam would draw extradition bill, saying it is too little too late. She has accepted that more would need to be done. After more than two months of social unrest, it is obvious to many that this extends far beyond the bill and covers political, economic and social issues. Have a strategist here in singapore. What is the mood like at the moment . What are people telling you . Not enough. Ift we have been seeing is carrie lam had done this three months ago, perhaps we would have been more calm and people would then what have been more satisfied. In early june. The key question, can the protesters sustain the momentum for the remaining goals here . Carrie lam did mention that it was not a possibility. This was wrecking laws that the protesters were doing here and significantly, universal suffrage which already rules out a proposal for that. Carrie lam saying we cannot have this discussion without polarizing society, so still reiterating there is not much a possibility there given the fact that most experts say genuine democracy was never in the cards, so a lot of questions on how realistic moving forward the protesters can be moving forward. Me bring you in here. As yvonne was talking, giving up some of its games yesterday, the question i have right now, was yesterday a one and done . You saw yesterday was mostly short covering. Buying on the market as you say, a 4 rally. Futuresume in the market which is also a very good sign. What you are seeing today is hong kong stocks are up. There are other markets doing much better and the potential for a trade meeting in the u. S. And china, but it really helps to show you that the issue is that hong kong has quite a bit of risk, so coming towards another we can, a lot will be worried if there will be more trouble on the street. Confident. T be if it does go calmly, we could see hong kong do a lot better, but people not surprising for what to say stay on the sidelines until it really plays out over the weekend. He might be able to answer part of the question. Do these protests continue to the same magnitude we have seen in recent weeks . Yes. As mentioned, this would be a temporary relief right now. This is seen as some aspects a temporary solution. Still want five demands that have been given out and it seems like at this point, they want to have the right dialogue, but this is a group of protesters that are wanting more and willing to fight for it as well, so a lot of questions on whether they can keep the same amount of momentum moving forward. We have not heard of whether they are canceling or causing any type of demonstration this week. We are hearing it is still happening in this week has been about the strike at school where students are boycotting and skipping class and staging demonstrations. We had some scuffles with Police Officers and students the last couple days or so, so at this point, it seems like all the we have seen that the government also has softened the stance, they are offering beijing is softening the rhetoric and the more frontline protesters, but it doesnt seem like they are willing to move anyway forward on any further concession and we heard the lawmakers earlier saying at this point, it is too little too late. Lets take a listen. She would say that order and unrest would be that with by the law which that particular statement is discussing because nowong kong, rule of law is almost zero, nothing as far as the police force is concerned. The response has been quite swift. Some say this is a bandaid through rotting flesh. Keep in mind, we will see what she says this morning with reporters. Lets get back to mark. You about trade because heard Steve Mnuchin talking, some saying the rally we are seeing, hong kong specifically, unless she comes up and goes the other way, it is straight dominating the dominating. It has been. The biggest fish in the ocean as far as markets are concerned is between the United States and china. Everything has been revolving around that. Everything goes back to between the United States and china since they were first introduced last year. The Economic Forecast has been coming down, we have seen risk of a virgin all over the place. Today, weve had some relatively good news between the two parties and seeing a bit of a bounce, one that started yesterday, one played a role in that bounce. And brexit helping others as well. The Biggest Issue is between the u. S. And china, but to forget the tariffs put in place have not taken hold yet, so the Global Economy will still place face big headwinds, so what we are seeing could be a repeat of what we saw in june. Markets can rise quite a lot during these times. Say that thean to longerterm picture has changed very much. There will be some decent moves to be made, but until we see the old tariffs takeoff, as long as the World Economy is there, it is not great. Blago right as i here in hong kong. Lets get more of the trade talks here with the first word headlines. China says the trade Negotiation Team will travel for the next round of talks. The announcement had originally been planned this month. The vice minister to a visit treasury secretary Steve Mnuchin and robert lighthizer. It is not clear what issues will be on the agenda. China is signaling a cut in the amount of cash is on the way. This is a move to release money in the slowing economy. They are calling for timely use of growth, including broad and targeting ratio. They usually follow through with requests from the council and policymakers got the rrr in january. The u. S. Has said to have arrived at a captain of an an Iranian Oil Tanker on behalf of washington. Several females offering several Million Dollars to change sides. Does notindian captain seem to have replied or made any comments. The latest on brexit, Boris Johnson has lost another vote in parliament, failing at his attempt to trigger a snap election. He needed two thirds to support his plan, but less than half actually backed him. He tried to argue that is early election is the only solution. He lost ind vote, the last 24 hours. Global news 24 hours a day, powered by more than 2700 journalists and analysts and at tictoc on twitter, in more than 120 countries. Lets move on and tell you about what is coming up. Herod green coming. She will discuss the expansion and increasing competition from another rival. That conversation is coming up next. This is bloomberg. Welcome back. You are watching Bloomberg Markets. ,ets talk about Southeast Asia looking to transform itself. It is working with microsoft to explore global facial recognition as well as Computer Vision technology. Weevilss it over cross it over we will cross over. It is no longer wanting to be just a ridehailing app, but wanting to be everything to everyone in Southeast Asia. Thank you for joining us. Talk to us through your ai strategy. It is very specific to problems with Southeast Asia. Let me be specific. It is a big problem in southeast. Sia with ai, they have been able to reduce that to less than 1 and with other things like safety and business, also providing airter financial services, has powered a lot of what you have seen and dont. About 100mounted to 12. Ion over the last to increase it Going Forward. No other company has invested so much in ai. See that, when can you see that investment . It will be over the next 12. Where over the next 12 months. Where world the money go . [inaudible] when we are thinking about investment in ai, we are thinking about moving from ai power to ai everywhere. T is very Important Technology want the power and skill to use, but whether it is so they can understand how it can be used to spot customer problems. Into airther investing technology that is relevant. For example, they many Different Things just have seen in Southeast Asia from singapore, 50 different linkages and dialects. Safety,hat, fraud, really important for us and also mapping in geo. You have talked about getting it for china. What exactly do you mean . Are some things we could get inspiration from. What is most important is using technology for the sake of solving specific customer problems. We dont develop ai for the sake of ai. China, this about is Companies Across the world. The companies have been localized, so i will give you an example. We have a partnership with microsoft. They have helped us a lot into for drivers and passengers and secondly, the by existingnguages sobal translation platforms, technology that is very specific. Is a very competitive space and in Southeast Asia, what major rival is go jack . How do you be the competition between you and go jack . I think we stay focused on our customers. ,hatever is going on externally they focus on the big problems we are solving. One year ago, i spoke about a strategy where we wanted to double down on the coming industry leaders. Already become the number one Customer Choice in Southeast Asia providing food and payments. For example, our business has grown by more than three times this year, so across the board, focus on execution and technology to use technology more effectively is what we are looking at. He ai will continue you have a 2 billion Revenue Target for the year. Is it on track . Exceeded exceeded . Exceed it . [inaudible] that turned out to be a tech war. Is whatis important does it mean for our customers and the interesting thing is right now, Southeast Asia for u. S. Companies and china and even beyond. Increasedwinds Technology Usage is a growth trajectory where we want to provide more customers and what is going important into future generations. Caseser macroeconomic there are, we are building a doable business, one we want to scale more efficiently and effectively. This is one that is flush with cash. Thank you. Taking place in the lion city. s biggest competitor, we have an exclusive interview. That is coming up in a little over an hour from now. We are seeing moves on the shanghai composite. This is bloomberg. Lets have a look at the latest business flash headlines. Tois no longer willing accept planes that does not meet specifications. New models have forced costly repairs. Themys he will not take without a guarantee of trouble three troublefree performance. Is worth more than 2 million before customer discounts and we offered more than 50 boeing planes from taipei to north america. In europe, on the back of news that china and the u. S. Will talking. N use futures of 1 . Mackenzie saying a short while ago, some concessions on the lifting of tariffs in october. That is what it looks like on some of the currencies. 7. 13 at the moment down there for the dollar and also stronger. We had also be treasuries one was dealt with technical glitches. We are entering the lunch break. S is bloomberg and bloomberg. En it is 10 29 a. M. In hong kong. I have your first word headlines. We start with the protesters in hong kong. They are vowing to continue their fight for universal suffrage. Withdrawalthe formal of the extradition bill as too little, too late. Demonstrators faced off against police, repeating calls for all five of their demands to be matched, including an independent inquiry into Police Action over the past three months. Singapore is to review electoral , signaling a general election may be on the way. Bute is no timeline, normally a vote follows once recommendations are made. The next elections must be held by april 2021. ,t is widely seen as the last as he has vowed to hand over power when he turns 70 in 2022. The philippine president is ready to defy china. He said he will support the Casino Industry despite beijings call for a total ban. Investors have dumped philippines property stocks in concerns that duterte would clampdown on outsourcing offshore gaming. Automakers enjoyed a second straight month or year of sales gains, easing the pain of a rough first half. Total deliveries may have risen 7 in august, that is thanks to cheaper financing. Kswagen says suv sales subaru is in an epic 93month streak of sales gains with deliveries rising almost 10 in the month of august. Global news 24 hours per day on air and on twitter. This is bloomberg. Turning now to Boris Johnsons brexit losses as they keep mounting. The Prime Minister losing another vote in parliament, failing to trigger a snap general election. Less than half of the commons back tim. He tried to argue that an early election is the only solution to the brexit gridlock for the past three years. It is the third vote johnson has lost in the last 24 hours and has market implications. We have seen massive moves, so look at cable, you have the euro, some other key pairs. Two things i want to note. We are flat on cable right now. When it comes to eurosterling here. This might have to do with the trade deadline coming through. The yen is pulling back against sterling, but that is probably another story. Focused, that is the window of event risk, where his sterling going to go . Where are we supposed to be hedging . What you essentially notice here , what we want to point out his you look at that over the next two months, you see an outsized betting in terms of put. Given the fact that we might not have to push that back in terms of the deadline, do we go from two months up until five months here . The point that we want to make here on this next chart is that we arguably have some progress, but we are nowhere near pricing in the worstcase scenario. People are still protected against the downside on sterling. This is the spread for your risk reversal. If you see a positive number there, which is what we were in a few months back, the ,ongerterm bets on sterling you could argue it means it is in the current price. Right now, lets flip back below zero, given the developments we have had over the past couple 14, 36 hours or so. Starting to look for the worstcase scenario ahead now. Rishaad lets get over to london now. It has just gone 3 30 in the morning. Boris johnson must be reeling from three parliamentary defeat in a row. It is the first vote he has had in the house of commons, no one has lost one since lord rosary. Now we look ahead to the passing of this bill. It has passed the first hurdle in the lords and it is expected to complete that over the next couple days and comes back to the commons on monday. Say they will not back a general election until the bill goes through. It seems almost unbelievable that an Opposition Party with day, we dont want an election, but we are in extraordinary times. Weve got to get away from this cliff edge, weve got to get the risk of a no deal pushed further out before the election can be allowed to carry on. Then we hopefully hit the reset button. That is what both parties will be able to do. Get some sort of mandate. It is pretty fragmented. It may end up that that does not happen. Vote to trigger a general election next week. Rishaad that is looking ahead here, but what about the possibility that these 21 mps expelled from the conservative fight an election, perhaps . Certainly, there are some contesting that. Those that are contesting their seats will have to fight again as independence of the next election and they will be up against conservatives. We do have a general election that is eminent. There will be johnsonapproved conservatives standing against them and it is about do you want to back your local mp that you know and that you may be like or do you want to back a conservative . Are you going to vote for a personality or a party . Either way, we will see a big shift. Have left tor mps their party, as well. Some of them sitting is independents, some forming new groupings. It is going to be very interesting to see just a much an of been just how much of an impression they have made on the constituents. The electoral map could look a lot different after the next election. Rishaad thank you very much indeed. Chief up, weve got ibm executive and chairman talking to us about the trade war and how it is affecting the digital economy. This is bloomberg. Rishaad lets have a quick look at the business flash headlines. The controversial face swapping app tumbled after a regulator opened up an inquiry into how data is used by the app. Privacy terms when viral due to the popularity in china. Regulator is asking executives to rectify the app. Apple is ready to borrow 7 billion in its first bond sale in a couple of years. In number of companies entering investment for debt markets. Billions more than 200 in cash and securities and it is selling senior unsecured bonds. To going to get you back bloombergs conference in asia underway in singapore. Our coanchor is there at the venue. Tell us what is on the agenda and you have a special guest with you. I do. , how it isbout ai penetrating every aspect of life. People talk about how it is possibly an existential threat. It will at about 13 trillion to the economy Going Forward in the next 10 years. Where you stand depends on where you sit. Lets bring in a guest right now. Good to have you with us. In the discussion today, people talk about how ai is still in its infancy despite the fact that it has been penetrated all across industries. Where do we go from here . We are beginning to see intense penetration. Over 20,000 engagements across different industries. We are beginning to see some of this scale. , but theourselves extraordinary work in using ai inside