Of a total breakdown. And technical glitches marred the launch of disneys new streaming service. To breakingirst, news from south korea. The jobless rate coming in at 3. 5 . This is in line with estimates but slightly higher than the previous month. Add 419 thousand jobs in october, more than they did in september, which was already quite a strong job scheme number. Pe number. That is helping to offset some losses,anufacturing job not to mention declines in retail employment. In south korea they have been really supported by fiscal policy. In budget is helping growth the public sector. Right now, the jobless rate coming in at 3. 5 for the month of october. Lets see how we are doing in the markets in asia. Overnight,d messages hearing from President Trump in new york, threatening the possibility of more tariffs if phase one trade deal doesnt get done. Hasydney, as that market just come online, new zealand,. Rading is underway with Fourth QuarterInflation Expectations, it plummeted off a cliff yesterday afternoon. The rpme expectations will cut for a third time this afternoon. We are watching trading in the next hour in japan as well. Looking at some pretty flat to negative starts in japan as well as south korea. Energy futures, pretty much stockss after u. S. Erased most of their gains overnight. A first word update. Brushfires continue to burn across New South Wales and queensland, with parts of sydney now under threat. Firefighters struggled to contain a blaze 20 kilometers north of the center of the city. Australia has been left parched and vulnerable by a two year drought. Once again. Choking the air quality reading rose above 400 on tuesday, about eight times the internationally accepted level. There is pressure on the government to find a solution. World Health Organization data last year showed india had the 10 most polluted cities in the world. Traders and bankers are hoping a better than expect did Third Quarter would boost their yearend pay. They are likely to be disappointed. A report says equity traders dropsared the worst with earlier,om the year while fixed income traders may only face 5 cuts. Former mayor Michael Bloomberg march 3d to run in the primary in arkansas. Michael bloomberg is the founder and owner of bloomberg news. He says he has not yet made a formal decision about whether he will run for president. Global news 24 hours a day and on tictoc on twitter powered by 2700 journalists and analysts in 120 countries. This is bloomberg. Isdi President Trump ratcheting up the pressure on china by warning he will substantially raise tariffs if trade talks failed to produce a deal. Speaking in new york, he said talks are proceeding well, but he will only take a deal if it is good for the u. S. Mr. Trump i tell everybody, if we dont make a deal, we are going to substantially raise tariffs. They will be raised very substantially. That will be true for other countries that mistreat us. We have been mistreated by so many countries. Shery ahn the president also said that policy is hurting the u. S. By shunning negative rates. Lets bring our columnist and a senior economist. Joe, let me start with you. Did we get any more insight on where we are at with the phase one trade deal with china . Negotiations are in the negotiation stage of this. The comments the president made today may have been as much for the domestic audience as for china. They are moving closer to getting some sort of phase one , which will not be the overall trade agreement both sides say they are seeking, but we still dont know when and where this will be made final. The president had plans to meet with xi jinping this month at the aborted aipac meetings in that is not happening now, so they are still haggling over the date and time. Haidi and of course, President Trump is putting growth at the center of his reelection campaign. Come 2020, what does that look like . Joe most voters are not going to be responding to what the fed does or whether it holds off on any other changes of Interest Rates. What they will be responding to our the Economic Conditions they feel in august of next year. If there is a sudden slowdown in the economy, and acceleration of inflation, that will have a much greater effect on what the voters will be doing. Now, theatus quo is economy is moving along fairly well and probably one of trumps biggest strengths going into his reelection campaign. What changes between now and will have a greater impact. Will have a greater impact. Shery ahn President Trump also taking a jab at the federal reserve. What do you make of his comments on negative rates . First of all, i would say i dont agree with him that the the u. S. Economy. The fed was right there when the crisis happened and it took them a lot of effort and innovation , andally fight this crisis , at leaste reason partially, why we are where we are right now. He cannot attribute success in Economic Growth to just his policies, the president. Its really a consolidated effort by everybody. But is the u. S. At a u. S. Disadvantage as the president claims because other countries have a lower rate . Jelena he is probably referring to the dollar strength, which has hurt manufacturers substantially. Overall, i dont think the country is at a disadvantage. We have better Economic Growth, so we should have higher Interest Rates. Thats economics at play. Haidi chairman powell had his chance to respond to the pressure coming from the president when he has his chance to respond to the pressure coming from the president when he testifies tomorrow. What is he likely to say . He will likely repeat the same message he delivered at his press conference. Assess whatoing to the level of Interest Rates is doing to the u. S. Economy. This was reiterated by a lot of different fed speakers including voters and nonvoters, that they would like to stop here and see what happens. I think he will not deviate much from that message tomorrow. Shery ahn thank you so much. We will continue our coverage as jay powell prepares to testify before congress at 11 a. M. On wednesday in new york, midnight thursday in hong kong. Plus, San Francisco fed president mary daly speaks with bloomberg at 6 30 a. M. Thursday if you are watching in sydney. Coming up, hong kong is bracing for another day of chaos. You can see live pictures there is the city wakes up. We will get the latest on the unrest. This is bloomberg. This is daybreak asia. Back ton lets get President Trumps speech today where he got back to one of his favorite past times bashing the fed. He called for a change of strategy. Investors now is an and advisor on due diligence. Great to have you with us. The chart on the bloomberg shows that President Trumps speech didnt do much. But we are looking at longterm reaction in the markets. Weve had positive trade headlines. Weve seen the s p 500 rising above its 200 Day Moving Average on the relative strength shown panel. Bottom have the markets finally priced in all of the feds potential easing that could come, and do i think we have modest gains ahead of us, especially through the end of the year. I think the market is encouraged by the fact that the fed will probably not cut again, notwithstanding President Trumps comments. I think overall, fundamentals are starting to see soft returns, which is what we like to see as an active manager. I think we will continue to see modest gains through the end of the year. Tradeshn we have seen this year when it comes to safe havens really skyrocket, but now that seems to be unraveling as we continue to see Risk Appetite in the market. Where are we headed in terms of the riskier assets . We will see risk assets outperform. You saw the risk on trade, if you will, like golden more defensive names earlier in the year gold and more defensive names earlier in the year. There was more uncertainty on trade talks. We were not sure how that would affect the overall economy. There was uncertainty about what the fed would do. I think people thought the economy was slowing down more than it was. Overall, people got defensive because of the uncertainty surrounding the markets. But now, things are progressing. The economy is doing better than people thought. Corporate earnings have been better than expected, and the fed has generally made the right decision and not cutting rates again. The market generally likes those things. I expect to see appetite for risk increase. Too much exuberance based on expectations that a partial trade deal will be done . Think there is exuberance. I dont think the market is skyrocketing. Ofhink people make decisions whether to buy or sell stock based on fundamentals. I think not having headline risk makes people more likely to make their decisions on fundamentals, but i dont think there is exuberance in the market by any means. Not far from still record highs though. In terms of earnings, it wasnt a terrible earnings season, but is that because expectations were low going in. Yes, expectations were low, and to your point, the market is not necessarily overvalued. If you look at what earnings have done and where expectations are, we are not in valuation territory. Earnings were better than so stock prices have been better than expected. Shery ahn we had a very busy day when it comes to corporate issuance in high yields. Some are saying we are seeing minimum rates, maximum profits and that wont last long, so the next recession could come as that unwinds. Is this something we should be cautious of as we continue to taken market moves . No, i think what you need to look at isnt necessarily issuance, but corporations and whether they are able to service their debt. If you look back 10 years before the crisis, the level and ability to service debt they had, its very good right now. The leverage ratio is not high at all. Even if we go into another recession, generally speaking, these companies are in a position to service the debt they have. Haidi we are seeing a little pressure on treasury yields in todays session. Where do you see this going for the rest of the year . I think they will stabilize around the levels we saw last week. Yes, we have seen pressure. I think President Trumps comments had a little to do with that. But frankly, treasury yields were too low and they were low due to technical issues related to demand. The u. S. Is certainly the best game in town in terms of being able to get a good return in terms of coupons and low default risks. That really put pressure on yields. But i think we are through that, and yields should stabilize at this point. I dont for see them going much higher. Hopefully, they dont go much lower. They are getting closer to where they should be. Before, they were much lower than they shouldve been. We are starting to see the slowdown in china is not improving. Data,look at the latest the boc is easing fairly aggressively. Is that enough to deter you from going in at the moment . , valuations are very attractive and overall, i think a deal is continuing to progress, a deal will get done. Chinasderestimate leaderships ability to pull the levers and stabilize their economy. They were concerned about trade tensions, how the trade wars, if you will, would impact chinas growth. I think there is less of a risk and chinas impact on the rest of the asian markets is substantial. Based on where they are today, i am definitely bullish on and we arerkets, overweight emerging markets right now as well because valuations are backtracking. Shery ahn we are seeing pmi start to bottom out. Is that a place for you would find some bargains . Absolutely. Overall, if you look at our portfolio, one of the areas where we are seeing a little risk and focusing on valuations is international equities, emerging markets, and developed markets. In germany, we had better than expected economic data. Worksggs it brexit itself out in the u. K. , there are opportunities overseas. But a strong dollar does not necessarily bode well for International Investments when you are investing in dollar terms. Continues to strengthen, that would potentially be a headwind for international and emerging equities. You so much for joining us. Coming up next, more travel disruption in hong kong with major train hubs closed. Ontest on the arrest the unrest ahead. This is bloomberg. Haidi this is daybreak asia. More disruption is expected in hong kong wednesday morning as clashes between protesters and police continued late into tuesday night. The worsening violence is drawing more international attention, with u. S. Senate Majority Leader Mitch Mcconnell vowing to work on delayed legislation to support the prodemocracy protest. People are starting their commute to work in hong kong now. How are they doing . What are the disruptions they are working with so far . The trains have been open for a little more than an hour, running unlimited service. We are at the central station, where we have seen people stream in and out this morning. The trains were more crowded than usual according to people we spoke to. Some buses have also been suspended, making a more challenging commute for those trying to avoid disruptions by protesters. The new strategy is putting gridlock in central commercial areas during the weekdays. Clashes intensified tuesday night and central in several parts of the city. The Chinese University of hong kong was the site of a pitched battle last night where violence reached a deadly level. Several injuries were reported among students there who make up the heart of the more hardline demonstrations. Of those arrested monday, around two thirds of them were students. This violence has sparked debate among the prodemocracy camp about their strategy moving forward and their political goals. What are we expecting from carrie lam or potentially from beijing . We have already seen chief maintain aarrie lam line around her desire to maintain law and order. Of late hasministry commented on the need to strengthen security laws in hong kong. Seeing u. S. Re senators also grow increasingly restless over what they see is a delay in pushing for a bill democracy the pro movement in hong kong. Mitch mcconnell on tuesday denounced what he called beijings insatiable thirst for control. Bear in mind hong kong is one of several pressure points in the u. S. China trade negotiations as President Trump seeks a deal with beijing. Here in hong kong, tensions continue. We are not seeing the government ine or beijing back down their rhetoric. There is concern that this increased violence could be used to justify measures such as a curfew, perhaps invoking emergency laws which allow for the introduction of the allowed for the introduction of the antimask law a couple of months ago. You a quick get check of the latest business flash headlines. Ferragamo has been hit hard by the protest in hong kong. Shares fell 24 in october. Reportedury brands Quarterly Sales declines between 25 30 5 . Also cited slow growth in china. Shery ahn a singapore internet, and he surged after winning a boost from the mobile version of call of duty. The company is raising its outlook for gaming and revenue. Revenue tripled to 600 million u. S. Dollars in the most recent quarter. Nissan has landed a blow and is saying its undecided on whether to make a payout at all. The carmakers its forecasts for forecast for profits for the year. Renault stands to suffer the most. We will get a check on Consumer Confidence in australia. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Turn into the australian economy, breaking news crossing the bloomberg, the Consumer Confidence index for the month of november coming in at 97. Uptake of 4. 5 from the prior number of 92. 8. Isth on month, that reading 4. 5 percent higher, following contraction in the month of october. Lets get some context and reaction on those numbers. I am joined by the westpac senior economist matthew. Great to have you. It is a rebound, but still in contraction, really. Matthew we are seeing an initial shock. A record low cash rate last month. Some of the global backdrop has improved in the last month but we have not retraced all of that decline. Sentiment is down 4 since the rba started cutting Interest Rates. We are below the 100 line so we have more pessimists than optimists and it is looking soft as a crucial leader into the christmas sales season. Up this charthrow which illustrates the conundrums are Central Banks. For the rba particularly as they are using. This idea that we are entering into the reversal phase where the more they tease, the more households, if you take a look at Consumer Sentiment, start to get unnerved by is there something sinister going on . Matthew that is exactly what is happening. It is. The move in june, july, and october have unsettled consumers, to a degree, worried about what the economy is. The major reaction was around the Economic Outlook component for the index. So that whole piece around the rbas ever lower Interest Rate and the uncertainty it speaks to about the australian Economic Outlook seems to be the overriding concern. You have three rate kites, 75 basis points, and easing from the rba. Tax relief for the consumer. Yet here we are with Consumer Sentiment down 4 since those measures rolled out. Clearly, the cash flow affects our being more than offset by these concern