The highest ranking executive to leave amidst the 737 max crashes. China isreport saying planning to replace embattled chief executive carrie lam. Australian markets back online. Thats turn to sophie for what to watch and markets. Little australian stocks changed after a twoday gain. Plenty of corporate updates. A potential earnings downgrade looming. They maintained their fiscal guidance in the face of two reports from short seller J Capital Research. On itsnstruments slumped weaker than expected forecast, warning that customers are more cautious in cutting orders. It is back online after the enthronement ceremony. Stocks falling 1. 7 and wellington, led lower by power providers. Rio tinto reviewing options for its aluminum smelter i. The deficit narrowed more than forecast. A quick check on bonds this morning, aussie and he read 10year notes reversing course after a fiveday decline. Treasury futures slightly higher after cash treasuries rallied overnight on brexit uncertainty, which did see the pound falter overnight, now recovering up about. 1 heading back towards 1. 2 nine, although holding a two decline. 129, although holding a decline. Ritika there was no quid pro phonehind his conversation with the ukrainian president , he asserts. William taylor made the claim in a statement to congressional impeachment committees are the president meanwhile has tweeted that the impeachment inquiry is a lynching but added we will win. Russia and turkey have struck a deal to create a buffer zone in Northern Syria. Withdent erdogan talked president putin for more than six hours before announcing the agreement. It includes joint patrols and coordinated action with Syrian Forces. The kurdish ypg fought for years beside u. S. Forces but turkey labels then separatists and terrorists. The Financial Times says china is drafting a plan to replace carrie lam with an interim chief executive. The report cites unidentified people briefed on the celebrations invasion. Successor the interim chief executive may not stay for a full fiveyear term. Hong kong says taiwans plan to send personnel to the territory to bring back a murder suspect is completely unacceptable. The case of the hong kong citizen who allegedly murdered his girlfriend in taiwan prompted the controversial extradition bill that has led to months of hong kong protests. Taiwan once the suspect to stand trial but hong kong says it cannot extradite him because the bill has been withdrawn. Global news, 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta. This is bloomberg. Shery. Shery thank you. Downing street says delaying brexit until 2020 means calling and election. That is after mps voted against Boris Johnsons fasttrack timetable to get the Withdrawal Agreement bill passed by october 31. Annmarie hordern is in london. Theaw Parliament Supporting general principle of the deal, so why did they not want to fasttrack it . Mps felt uncomfortable with fast tracking a 115 page document that will change the course of british history. They say it was not enough time to scrutinize and really look through how the impact of this brexit deal would be on the ut economy, so while he did win a bit of a victory in the sense that he was able to get the deal through, whether or not mps agreed in principle on it, they did not agree to the fasttrack amendment. Force johnson said if they were going to vote down the fast tracking of the bill that he was going to push for a general election and actually scrap the bill in its entirety. That was not what happened. That was the biggest takeaway of tonights very dramatic events. He struck this conciliatory tone and said he would go back to the e. U. We already heard from donald tusk who said he would recommend that the e. U. Extend brexit, extend the delay. We are looking at possibly a january 31 we will get that news tomorrow. Longo or three months is a time and brexit time. What is the potential for what could happen in the next few months . Annmarie this is the big question. Does Boris Johnson use the next three months to work on getting this deal passed through parliament or does he try to push for a general election, which either way, he can come back with a majority and get the deal through exactly how he wants or he can potentially lose his power to his opposition, the labour party. The big question is what would happen in these next three months in the amendments appeared likely, what we can see is mps bringing forth amendments like keeping the u. K. In the Customs Union or wanting a second referendum. Basically a referendum on this deal to the people, and this is something that i do not think Boris Johnson would be able to swallow. In that sense, he would probably again try to scrap the bell and push for a general election, so i think the simplest answer right now is that it is all on ponce. We have another delay. I think the pound is quite significant, watching this. We are trading around this 129 area. Most strategists see it pop into the 130s. The pound has been this sentiment barometer. The likelihood that the u. K. Will crash out is not really an issue anymore. So time will tell, but it is looking like the likely that the u. K. Will not be crashing out and there will not be this chaotic brexit. Shery given how fractured u. K. Politics is at the moment, do we have any idea what a snap general election would result in . Annmarie thats a good question. Boris johnson leading in the polls so he could potentially win a majority, but you have to remember the country is still divided from the 2016 referendum outside sitting outside the house of commons. You had about equal number of remain protesters as leave protesters here at either party won a vote, you heard huge roars from them. Thousands of protesters marched on parliament, asking for a peoples vote, so the public is very much divided but it does look like Boris Johnson does have a lead in the fall. He could potentially get that majority if there was going to be a snap election. Hordern with the latest on brexit in london. Coming up, quid pro quo, new allegations that trump tired ukraine aid to rival joe bryden joe biden. To takell get naomi that on, next. This is bloomberg. Shery haidi this is daybreak asia. Shery lets head straight to hong kong for what to watching markets this morning. Sophie i want to check in on whats going on in sydney. Aussie shares are off. 1 to snap a two day advance. Wise tech under pressure, dropping nearly 7 this morning as the Company Fires back. It researches to reports alleging that the company, in its acquisition, is trying to boost its narrative to demonstrate it is a highgrowth tech firm. Wise tech confirming guidance for revenue for fiscal 2020, saying many of the claims in the J Capital Research reports are wrong. This in response to the misinformation this morning. I want to quickly turn attention to what is going on in the emerging markets given the pond for yield that continues, so jumping into the terminal, you can see em indexes are trading around the strongest levels since august, but with more political crises erupting across the em world, investors are being reminded of the risk of getting too deep into highyielding markets. Dollar yields surged to 24 in lebanon as the government grapples with demonstrations. David leavy warns that this cycles asset bubble is in the emerging market sector with Serious Problems due in the next recession. Haidi we are going to put that question to our next guest. Naomi is the em Equities Fund manager in london. She joins us in sydney today. Great to have you. This chart builds on the theme about,phie was talking this optimism. I dont know if its part of the renaissance because it was so oversold in the em space at one point. This chart, basing it on the 200 day moving average, it does appear we could have further upside when it comes to emerging market, stocks, and current. You look at a map and you can kind of tell that hitting the em grappling with unrest and turmoil. Naomi this year, emerging markets have seen and all a lot of choppiness based on the trade war fears we have been dealing with over the last 18 months. That could provide support going into next year for emerging markets. Theres hope that the dollar continues to depreciate a little bit better than emerging market currencies which would help emerging markets into next year. Earnings growth is very strong for emerging markets next year, and the risk is perhaps overstated, particularly in the more established emerging markets. India is starting to see more positive growth after a softer year and that could be a particularly positive market next year. Thei china is really bellwether. Even if we have a phase one many deal, you are dealing with so much growth. We are in a structural as well as a cyclical slowdown. Is that a bellwether . Growth. Hina has had 6 that is continuing to track down. Well within is expectations. It is not just about the headline level of growth the composition of growth and it has been well and that china is rebalancing. I would encourage people to look more selective within china for the stories they are getting exposure to, not just at the index or headline level. Services sector is particularly strong within china area the Big Education within china. These names, despite multiyear growth stories, are finding new avenues their growth. Their payments businesses, cloud businesses, as well as their core ecommerce and gaming businesses, sharing multiyear growth worries. Now at derated levels, so longterm investors can take advantage of this opportunity. Shery we have seen some stability and the chinese yuan as well or the chart on the bloomberg showing how volatility in the yuan fixing has climbed to the lowest level since 2011. This after the chinese yuan broke that level. Would this give some upside to those chinese exporters and would you consider owning some of them given that a cheaper chinese yuan could be an advantage for them . Naomi i think china has been clear going into this phase i deal that they are not going to depreciate the yuan too much further. I am not sure the u. S. Would tolerate too much further depreciation on the yuan. The domestic story is really where we are at in china. Population toge deliver on that domestic story to grow retail sales. The retail sales market in china is much larger than the u. S. That overtook the u. S. Retail sales market a couple years back. And the growing wealth of the chinese populace continues to be a very positive story. Much more stable on the longer term then trading. Shery lets talk about trading with other exporters. This chart showing the downturn we have seen on those economies dependent on trade with china. We are talking about south korea, singapore, hong kong, japan, and so forth. If will these markets fare chinese stimulus has become so targeted towards domestic consumption. I think there is some softness we can expect in those markets. China is looking to nationalize and support its own domestic economy so that does bear negatively on those other markets as you suggest. That is why we would advocate a very targeted selective approach to emerging markets, looking at where the pinch points are, looking at where the stimulus points are and the beneficiaries. It is not everybody. It is not a rising tide. China should do well. Potentially, vietnam can profit from this but it is not the same across all emerging markets. Haidi thank you so much for joining us. Here with us in sydney today. Coming up next on daybreak asia , softbank to the rescue. It is said to be taking control potential forh a a turnaround in this latest installment of the saga. This is bloomberg. Shery this is daybreak asia. I am shery ahn in new york. Haidi i am haidi stroudwatts in sydney. A Second Chance is coming for wework as part of the deal set to see softbank take control of the offer sharing company. Adam neumann severed most of his remaining ties. Lets bring in sarah mcbride. What is the latest we know in terms of these competing deals and what the likelihood is . Sarah it is all but done. Prevailbank deal will over the jp morgan bailout deal, and part of the reason is because the softbank deal included some pretty hefty payouts for the ceo, adam neumann, who is still, as of now, controlling the voting shares of the company, although that is going to change under the terms of this deal. Softbank aws lifeline. This is a company that desperately needed cash. It had 1. 5 billion on its Balance Sheet at the end of june but is now apparently already almost about to land out of cash, so the fact that this deal million in new0 loans for softbank and moving up a warrant that was not going to kick in of 1. 5 billion until next year, that should get the company some cash for now. Shery tell us a little bit about adam neumann now. Hash he, for somebody who burned through so much cash and left his Company Almost in tatters, you could say, hes doing very well. Negotiated a consultancy softbank. Llion from softbank is redoing a loan for him. 500 million against his wework shares, and through an offer, they will buy up to 980 Million Dollars worth of his shares, so hes doing very well. He will have to step down as chairman. He already steps down as ceo last month and he will be left seat at theserver company. Sarah mcbride with the latest. Thank you so much for joining us. Lets get you a quick check of the latest headlines. Facebook shares tumbled as thousand more dozens more joined the antitrust investigation into the social network. They want to determine if competition. Mark zuckerberg is to defend his cryptocurrency project before a Congressional Panel on wednesday. He said it will not launch without approval from the u. S. Government. Shery bloomberg is being told saudi aramco will push to complete its initial Public Offering this year by forces say the state owned oil producer is considering formal announcement of the listing plan as soon as next few weeks. It was originally slated for october 20 but was postponed after investors pushed back at aramco started to trillion dollars valuation. 2 trillion valuation. Haidi john donahoe. The ecommerce veteran takes charge of a 40 billion clothing giant but increasingly relies on data and technology to keep exact. He has searched on the board since 2014. He worked at nike for 40 years and will remain on as executive chairman, saying in a memo to employees, i am not going anywhere. Shery ahead of the boeing unit in charge of the 737 max jetline has stepped down. The crisis at boeing is deepening. Su keenan has more on this. This coming on the eve of those thirdquarter results. Has been have been a lot of optimism going into the results with boeing saying it is making progress in getting the regulators to return the max jet area that is now all up in the air. Lets take a look at the executive who step down. As you mentioned, three years after joining the being in the unit, just as the max jet was coming down. Kevin mcallister is the highest ranking departure in the wake of the clashes. We know the ceo, bielenberg, lost his role as the chairman earlier this month. He will Face Congress next week to testify on what boeing new. Decline ona big friday. It continued through on monday and tuesday. A bit of a bounceback, but the stock has taken a big hit and executiveat for major changes is only getting louder. One analyst said i am not sure what it accomplishes having mcallister step down. He is being replaced. There is an overwhelming view that questions will continue. Itsdowngrading boeing and latest note, saying it believes the issues are going to continue to linger, and most importantly, it believes it could affect the companies profitability, its ability to compete, and that they could be longlasting. Set to reportis earnings later on wednesday. We saw some optimism ahead of that. That boeings of you was making progress with regulators. The question is what did they know and when did they know it . That could be up in the air. In the bloomberg issue regarding there isthe analysts, the lowest target in a year in terms of where analysts believe as they downgraded the stock. It will go. Report,to the earnings the stock has been under enormous pressure. On friday, it had its biggest losses ins 2016. You are looking at the earnings watch. The expectation is for sales of over 19 billion, and earnings estimates for about 220. The big question on the Conference Call will be what is ahead and the testimony ceo. Among number testimony from the ceo, bielenberg. It will to mullenburg. This is raising uncertainty not just for boeing but the entire industry as well as boeings finances. Of course, boeing provides jets to many if not all of the major airlines. Again, this has been a huge problem. Two crashes within five months. The lion air flight, the Ethiopian Airlines flight in march of this year, and then the grounding of the giants around the world jets around the world. Testimony isthe expected to beyond what boeing knew and whether it misled those regulators. Shery thank you so much. Coming up next on daybreak asia , quid pro quo or no quid pro quo . That is the question at the center of the impeachment program for President Trump we will bring you the latest. This is bloomberg. Hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. Ritika you are watching daybreak asia. The u. K. Officials say Prime MinisterBoris Johnson will call an election if brexit is delayed until january 31 next year. Johnsons push tois month was derailed with parliament blocking its plan to rush the deal into law. Earlier, the house of commons had backed johnsons deal. It leaves brexit in limbo with long. U. Now to decide how of a delay to offer. P. M. Johnson the house has again voted for delay rather than a timetable that would have guaranteed that the u. K. Would be in a position to leave the e. U. On october 31 with a deal, and we now face further uncertainty, and the e. U. Must now make up their minds over how to answer parliaments request for