We will be asking if the company can find a way back. Sophie and economists say we may be entering a period of peak dovishness. Posse shares opening flat after following the most on wednesday. We are keeping an eye on a weak Earnings Report as well as Oil Companies with brent extending declines and opec not pushing for deeper supply cuts. The chairman spoke of caution in the short term with capex below 8 million u. S. Dollars for 2020 and 2021. Checking on the aussie dollar, treading water near a oneweek low while aussie bonds are gaining ground on a possible delay to a u. S. China trade pact being signed. Futures pointing lower after japanese shares ended wednesday flat amid signs of overheating. Breaking news crossing the bloomberg on google, google said to be mulling changes to political ad policy, this coming on the back of twitter saying it is voluntarily suspending political adverts on its platform. Facebook on the other hand really more embracing it. Google now said to be mulling changes to its political ad policy according to dow jones. Be mullingid to changes to its internal policy when it comes to political ads. This comes soon after twitter said it would be blocking most political ads. Its just a year out until the u. S. Election and these big tech giants are really having to make difficult decisions on accepting political advertising. Also under pressure to ban political ads before the u. K. General election as well. Lets get to first word news with jessica summers. Jessica stateowned entities in china are said to be in talks about investing up to 10 billion in the hotly anticipated saudi aramco ipo. The beijingbased silk road fund is among parties that have been in discussions with other mainland funds and soas potentially joining in. Chinese investments in aramco would bolster ties to saudi arabia and allow china to profit from global oil production. Maxreturn of the boeing 737 is in further doubt after u. S. Regulators rejected an audit on how improved software is being developed. Sources say boeing is now revised and decelerated plans to bring the jet back to service. Were told the issue came up in a meeting including officials from the faa and the european safety agency. The max has been grounded since march after two fatal crashes. President trumps personal lawyer says he has hired a legal team to oversee federal scrutiny of his dealings in ukraine. The former new york mayor denies any wrongdoing, saying his work was solely as a defense attorney to defend his client against false charges. He added that the evidence will prove the investigation is a farce and a frame up and will show the president is innocent. Thecyprus is revoking citizenship of a fugitive financier. His accused of masterminding the 1mdb scandal which sought more than 4. 5 billion dollars allegedly misappropriated from the malaysian investment fund. He denies any wrongdoing. Global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. Im jessica summers. This is bloomberg. Straight uncertainties back as a potential trumpxi summit is now seen slipping to december at best trade uncertainties back. Lets cross to los angeles and our senior trade editor Sarah Mcgregor joins us. Do we have any idea what happened to those scheduled december tariffs . Sarah its a really good question. We are hearing from our sources that this plan to summit is being possibly delayed until december, so where does that bring us . That brings us closer to the december 15 deadline with the exposenate is going to postpone the deadline on china. It has really not made mention thesens to really cancel december 15 tariffs. They say it depends on if a phase i deal can be reached. This just brings the drama back to the forefront of these trade talks again and raises the stakes for china to get the deal signed and delivered. What about the locations and how politically sensitive it will be where they choose to have the next summit . Hetrump himself has said wants to have the signing summit in the u. S. Some may raise the question why does it matter. Definitely the Trump Administration want to make sure it is happening between u. S. Daylight hours, they have the full American Media on their side covering this, but beyond that, it is symbolic. It might indicate an upper hand if the deal is being signed in the u. S. The Trump Administration can take the lead and say they were the big winners out of this deal. For them, it is quite important. What our sources are telling us, however, is china perhaps does not want that and right now, discussions are moving toward the idea this happen on neutral territory. Someplace in europe, perhaps sweden, perhaps switzerland. Details are still being worked out. We know from the north korean summit how much the idea of pageantry matters to the u. S. Leader. Risks . E the does this open up more potential ,or delays, a loss of momentum more issues, either side maybe overplaying their hand . Absolutely. Out,onger this stretches the more opportunities there are for this to fall apart. If they could get this done in a swift, quick manner, it probably would have been ideal for both sides to take the goodwill they had and run with that momentum. But even something as simple as not being able to agree on the location sort of sours the mood, you could say. Theres really a lot of optimism right now that a deal could still be reached. But again, the longer it takes, the more chances that even other things could crop up Foreign Policy differences or otherwise that could really sour the mood between the two sides. Markets may yet be disappointed. Thanks for joining us. Shares findinger the floor with the stock among the most actively traded in the session. Plenty of data on why. This is bloomberg. Uber hit a fresh new low with a surge in Trading Volume after the lockup period for investors expired, allowing them to abandon their position. What will investors be focusing on now that the lockup period is done . They will focus on shift fundamentals. Ist uber has to show execution in terms of getting to positive cash flow and positive he that. Positive ebitda. They can show operating leverage and become profitable, and i think they have to show a path now. What are the Biggest Challenges to win back investor confidence, but also to forge a Cohesive Strategy and head for the company . The biggest thing is the Unit Economics. We know the Unit Economics are very good in developed markets like the u. S. , but when it comes to food delivery or latin america or some of the asian markets, they are still using a lot of subsidies, and our view is they may actually end up exiting a few of the markets. They did get out of south korea. We think they may end up doing the same in latin america simply because the Unit Economics will not be viable for the foreseeable future and i dont think they have enough time Going Forward to keep subsidizing these markets. Haidi in the meantime, the legal and regulatory battles continue. Sort of thing going to continue to haunt not just uber, but i guess the entire space . How did that potentially evolve . That is a good point. Uber is trying to cut costs. They cut a lot on the sales and marketing side. I think when it comes to the treatment of drivers as employees, they have no choice but to work with regulators city by city and, really, for important cities because uber is theyan urban phenomenon, will have to find a way to please regulators, make sure they are happy and really go city by city. There is no onesizefitsall here in terms of solving this problem. Shery how big are the challenges for over eats . Uber eats kind of operates in a very fragmented market. Our view is there are just too many players when it comes to food delivery. Food delivery, when you think about it, is not a very attractive business. Is aber, what they want synergy between ridesharing and eats, and that is what investors hope they will be able to bundle and come up with a subscription or advertising model. Even they are thinking of at a ring adding grocery delivery and that could be interesting. Haidi thank you so much for joining us. Later, we will be talking about softbanks results. Uber weighed big on that. Major bets on uber and wework. Lets head to hong kong now. Sophie taking a look at one of the early movers and the aussie session. Jumped as muchs as 2. 8 at the start of cash trade, now easing that gain, though. Itsemains on track to meet one billion aussie costsaving target i the end of fiscal 2020, report card his demonstrates the impact of compensation costs. Fullyear cash profit fell 11 , and the lender announced another dividend cut which takes total payment for the year down to 1. 66 aussie dollars a share. They also announced plans to sell its wealthy unit this year with an ipo possibly in the cards. Back to tradeet now. Joining us now is ubs Asset Management head of fixed income. It is an interesting space we find ourselves in. There is uncertainty still over the trade situation. An interesting reaction when it comes to sovereign bond markets globally and increasing conversation or noise about maybe we will start to see qe in australia. How are we placed at the moment . Fundamental flow has stopped getting worse. I think that is the most critical driver of markets, but there has not been any material moves. Australia, a lot of chatter, and a lot of analysis, but the reality is i think it is still a long way away for australia. When it comes to the bond market, is duration looking a bit long and the tooth . We are consolidating because you need either another cut or some weakening furthering data to drive yields somewhat lower. Difficult it is very to see a material selloff at the same time because of how low cash rates are, how weak inflation is, and of course, very tepid growth. We saw the fed pausing on its midcycle adjustment. Here is how the chicago fed president categorized with the fed is doing now. Im not even sure what neutral is anymore. I think it may have moved down on a shortterm basis and we need to make an adjustment. I would say moving from leaning toward a restrictive stance as a path to leaning toward an accommodative stance, and that is pretty much what i think we have engineered with our third rate cut at our last meeting. A third rate cut that could be the last in a while. We are seeing bond markets react to that potential. What does it say about perhaps these questions about peak dovish and is achieved . Dovishness having been achieved . The key word i heard there was accommodative. Personally, peak dovishness continuew is they will to ease. The fact that he admits they do not know where neutral is means unchartedavigating waters. Shery does that mean you do not expect Something Like the 2015 tantrum we saw after the ecb signaled they would not cut rates further . Correct. This is a scenario playing out in the u. S. , and it still suggests the u. S. Bond market will outperform over time european bond markets because of the scope that they have to ease at this time. Haidi what implication does a resolution in the trade do, albeit a light version, even have or has that been priced in and we are weary of it now . The truth is it is not a comprehensive solution but it stops getting worse, and markets are sort of indicating that i think at this time. The fact that the markets have moderate reaction to the fact it might be pushed into december, we are talking about one month. Haidi theres increasing chatter about the need potentially for further unconventional Monetary Policy and australia. You pretty much shut down the idea of them doing q. Week qe. Shut down the idea of rate cuts, ising that reversal where it making things sentimentwise worse than better. Its about communication. One of the most powerful tools Central Banks have is communication, and the things that i hear is that the governor governor will hes further if they have to, Interest Rates will not be going up for a long time, but the combination of fiscal policy, targeted fiscal policy alongside very accommodative Monetary Policy is the key next step. Also, the aussie dollar come off a fairway. Definitely possible. They are exploring, as they should, as a prudent regulator and government should, but i think theres other things that will be done before we get to that. What happened to the regions really against more fiscal support . The german minister said theres no need for additional fiscal support, and yet you are seeing the limit of Monetary Policy. Absolutely. It is painful, though, extracting structural change. We heard talk last night about the Banking System in the euro area, but im sure fiscal policy will happen in germany. It just could take many months for it to come to fruition. Shery thank you for joining us today. You can get a roundup of the stories you need to know to get your day going in todays edition of daybreak. Bloomberg subscribers go to dayb on your terminal. You can customize your settings so you only get the news on the industries and assets that you care about. This is bloomberg. This is daybreak asia. Shery lets get a quick check of the latest business flash headlines. Xerox is said to be lining up from citigroup. Were told xerox is considering a cash and stock offer that sees room for about 2 billion in annual savings from a possible merger. Sources also say no final decision has been made and there is no certainty of a firm offer. Have all, and citi declined to comment on speculation about a bid. Fell for the september period where the decline of 12 from a year ago, but slightly ahead of forecasts. Fitbit had agreed to be bought in a deal that will shore up googles consumer hardware business. The two Companies Expect the 2 billion transaction to close next year. Remainsks ceo defiant, assuring investors his dealmaking will come good. We will make money once the weworks building portfolio is allowed to ripen. How . Stop the new Building Developments and profitability will drastically improve, and we can expect the cost to go down by half or even more. Its that simple. Huawei is defining pressure from the u. S. Its founder and ceo expecting smartphone shipments to grow 20 next year. We asked if he has seen an impact at all from washingtons blacklisting of the company. Yes, indeed, there has been an impact. Reached agreements with google, and under the framework agreements, we both work hard to build an ecosystem for the world, and now, because of the supplies being cut, there has apart fromact, but the googlerelated apps, we still have a lot of features and functions. A lot of consumers still are our firm. Accept the impact is bigger than the china region in terms of the smartphone business, so we do have to slowdown business in the nonchina region a little bit, ourwe have mobilized finances. Experts, thousands of people in these domains are working harder , and wess these issues with these future resources. We are allocating some of these the holes. O help fix your Corporate Strategy strategist told bloomberg yesterday that your smartphone shipments in 2020 will grow 20 and you could get up to 50 of market share domestically in china for smartphones. Is this evidence that trump measures against huawei are not working . I have not heard of these data yet. This years shipment will be around 240 million to 250 million and they expect next. Ear there will be big growth however, we dont know about the future situations we might face, so im not certain about the situation. Worst Case Scenarios, best Case Scenarios . Worst casethe. Cenario is what we have now be the worstwill case scenario, and i think things will start to get better and better. Later in the hour, we will speak to frost and sullivan vp richard long on the challenges huawei faces outside china. This is bloomberg. Sometimes your small screen is your big screen. And with the Xfinity Stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. Download your dvrd shows and movies on the fly. Even record from right where you are. Whether youre travelling around the country or around the house, keep what you watch with you. Download the Xfinity Stream app and watch all the shows you love. The chance of a recession is not significant. Recession risk is off the table. We may go into a recession. Lets turn the ship around. We are going to see an uptick in and you factoring. Put some of the we may go beh manufacturing information and data points behind us. That should stop the inventory cycle. The market signal if you look at the same time at the fiscal and monetary backdrop using both fiscal and Monetary Policy together it still will keep markets going. Thats the narrative im focusing on. We will still remain in an economy that does not grow as strong, that is not as strong as we were used to before the Global Financial crisis. Some of our guests seeing green shoots and the global economy. Is strongment driving the index is overbought, but the allure remains. The good times i see continuing. Next Year Economic growth tops expectations and analysts are predicting the taiex companies will post doubledigit growth in 2020 and 2021 after falling this year. This after tech firms were hurt on weaker smartphone demand, but so far it looks like everything in taiwan could be a buy. Shery thanks for that. Lets get to first word news with jessica summers. Jessica the potential u. S. China trade summit is now seen slipping into december at best. Washington has expressed optimism about a socalled phase i agreement with beijing said to have been preparing for president xi to travel to america, but bloomberg is told that potential signing sites in iowa and alaska have been dropped. Asia and europe are under consideration. Defending growth statistics, denying manipulation of the figures after questions about the unusual stability of the data. The Prime Minister<