Biggest demonstration in a month. The numbers indicate the protests will drag on into the new year. Kathleen one story for the stock market on friday for the u. S. , a blowout drops report for the month of december november, that is setting the stage for strong december meeting and even a strong 2020 because people have concerns about recession long gone after the jobs had its biggest monthly gain since january. You can see how the stock market perform, the Dow Jones Industrial average gaining 1. 4 . Industrials, energy, financials, all the companies doing better, and should do better if the company is going to if the economy is going to do better. Data to 3. 5 . A separate report shows Consumer Sentiment at a seven month high. What is this going to mean for asian markets today . Sophie we are seeing a risk on somewhat with futures pointing higher after the weekend brought us a surprise drop in chinese exports. Kong, therein hong have been calls for a general strike after the biggest prodemocracy march since the summer. Also, we get japans thirdquarter gdp ahead of benchmarks edging closer to 0 . Checking on the open in news england, stocks under pressure off 1 10 of 1 , this after seeing a stock under pressure earlier, more than 70 on the surprised designation of the ceo. Surprise resignation of the ceo. Paul thank you. Thats check in on the first word news and get over to su keenan. Su we start in hong kong, hundreds of thousands of people joined the biggest demonstration in months. Thisassignment assigned a popular unrest will continue into the new year. That 300,000y people marched on sunday, police but the number below 200,000. The rally was promoted by the human rights front. Emergency Services Remain on high alert in New South Wales and queensland as hot, windy weather continues with devastating bushfires. More than 2000 airfares and 100 aircrafts involved in an attempt to halt flames. Air pollution in sydney has hit record levels and ranked worse than some cities in china last week. In the u. K. , the latest opinion polls all gave Boris Johnsons conservative party the lead, four days before the general election. Brexit is expected to be top of the agenda as people vote, and those opposing the split are urging a tactical vote against the tories, backing the candidate most likely to win a seat. The Prime Minister has warned that complacency is the main threat to victory. The u. S. And north korea, President Trump downplaying recent missile trip missile tests in north korea, saying kim jongun is too smart and has too much to lose if he acts in a hostile manner toward the u. S. Kims envoyd after said talks about two new denuclearization are off the table. State media not say what kind of rocket was tested. Global news 24 hours a day on air and on quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan. Kathleen thank you. Chinas exports unexpectedly fell last month as Global Demand continues to weigh in and a trade deal remains tantalizingly out of reach. There is hope for progress out of next sundays deadline for u. S. Tariffs. Thats get to our china correspondent, tom mackenzie. Key takeaways about what has happened with the trade data when it comes to the trade deal . Of how is a reminder punishing the tariffs from the u. S. Have been on chinas manufacturing sector. The highlight with the trade data out over the weekend, exports overall from china falling 1. 1 percent, there was a forecast they would increase at 0. 8 , almost 1 . They dropped 1. 1 , this is in november. To the u. S. , exports down 23 , the 12th straight monthly decline. They also dropped to the eu as well, sluggish Global Demand. The expectation has been that retailers and companies would be loading up on goods from china ahead of the shopping season, the Christmas Shopping season, but that does not seem to have played out in terms of numbers. Bloomberg economics says that longerterm, they think the pressure on chinese exports will continue to the u. S. , and less you get a wrist in the trade talks. In the tradeite talks. Imports have increased your on year, thats after a drop in october. Economists we have spoken to said it points to potentially a stabilization in the domestic chinese economy. We have china importing more u. S. Soybeans, is this a goodwill gesture . Tom potentially. Overall, we know in terms of soybean imports to china over the month of november, they increased year on year by 41 . They dont break it down, chinese officials, as to which companies which countries that come from but we support we suspect that a large amount is from the u. S. That might be at the least a nod to the u. S. As a trade negotiations continue. U. S. Ll, imports from the uphstep 30 u. S. Ticked 3 . Sources in the u. S. Say they think they will be a deal by december 15, when the additional tariffs could come into play. Again, negotiations are around the tariff roll back on the chinese side, and on the u. S. Side, just how much the chinese are buying agricultural purchases. Paul thank you for joining us. Protesters were out in force in hong kong on sunday in a sign that the antigovernment, antichina demonstrations will probably drag into the new year. Organizers said 800,000 people took part while police but the figure below 200,000. There is also a call for a general strike on monday. Man yvonne is in the Central Business district. Large it was another turnout over the weekend and weve been walking around, and in terms of the damage left behind, youre not seeing a lot. There is still some trash in the streets and graffiti on the walls, and behind me, you see that protesters have thrown petrol bombs at the court of final appeal, which we havent seen before, there protesters targeted the courts specifically, but this is the most of it. Largely speaking, this was a peaceful event. You mentioned that 800,000 people showed up from the Victoria Park and causeway bay to the central district. We saw families show up, perhaps knowing this was a legal event, the first approved by police since august, and that prompted them to show up in numbers. Police were restrained. We saw some riot police toward the end of the march and it was peaceful until nightfall, when the radical protesters and we were some tensions with police. Nothing escalated too quickly or too far. We did not see teargas. Water cannons were out but largely on standby. Hours before this march, Police Seized a11 people and whole range of weapons, stills, bullets, pepper spray, and extremeay they presume groups were trying to attack police. There were still some nerves leading up to this event, but overall pretty tema. Pretty tame. Kathleen what are we expecting today . Yvonne we are seeing signs across the city for a general strike. It is a bit of deja vu once again, what we saw yesterday and the general strikes from what we saw six months ago. People could skip work or school and thats what organizers are hoping for today. Expect some traffic disruptions on the way to work this morning. We interviewed the groups about the next step and they say they of our to continue the fight as long as the government put something on the table, which we havent seen so far. They are saying they will continue this movement well into next year until the legislative council, that could be the next flashpoint. Kathleen thank you so much, looking forward to your reports today. We will have more on the hong on hong kong through the debuted hong kong through the day. Still to come, an sports retailer later this hour. Kathleen ahead, we are joined by the Whittier Trust cio to talk markets this week after fridays stellar u. S. Jobs report. This is bloomberg. Report. This is bloomberg. Paul we are counting down to the sydney open, relatively clear day as opposed to the smoke in the past week thanks to favorable winds from the sea, about the only thing in the area not on fire right now. Sidney futures higher by more than half a percent, inspired by the big runup so in u. S. Equities after the blowout of jobs numbers. I am paul allen in sydney. Kathleen i am Kathleen Hays in new york. Youre watching daybreak australia. On wall street, we are likely to see investors focused on the latest fed decision, and the first day of trading for saudi arabia saudi aramco. Su keenan is watching it all. All accounts, the jobs report was stellar purity in exceeded not only expectations but the private payrollsu. S. November rising more than 260000 and unemployment at 3. 5 , adding to a risk on tone. Can we continue with earnings that are very heavy . Big influence a on it, you have around of software bunnies reporting, including adobe. These are toward the end of the week and another round of reports will come out earlier, including dave and busters entertainment, and lululemon. Stocks aret of these green, reflecting the friday close. Oracle is one of the marquee names. No major deviation from their guidance is expected. Sales are seen rising, but there is a focus on Cloud Computing and software because of the disappointing report we saw in sales last week. Finally, again, if the earnings come out strong, that may overshadow the feds report, which is largely expected to remain. Paul lets turn to bonds, an upturn in yields on the september low, is that signaling the u. S. Economy might be on the mend in 2020 . Su its having a big impact on diversified portfolios. When have you had a year where stocks and bonds rallied and stocks and bonds domestic and international . You look at portfolios that are 60 , 40 divided between stocks and bonds and they are the standout performers, one of the standout performers of the year, returning about 19. 20 . That would please most equity investors, the only thing that would beat that is if you are in the etf spider. Kathleen what are traitors saying about the outlook for oil . Su surprised about how opec came in, you had a lot of hedge funds that were net bullish and the plunge going into the decision and then you saw oil boost at 59 and it will be interesting to see how they recalibrate going into this week. Kathleen a lot to watch this week. Joining us now is the Whittier Trust cio, it is great to have you back on the show. Lets go back to the blowout jobs report. Gmre were 46,000 striking workers that came back, that accounted to part of it. Unemployment and higher wages, how do you put it together . We knew the jobs number would get boosted by the returning gm workers, that has still left a consensus at 180,000. So by any measure, this was an absolutely blowout number. 3. 5 now at rate at a 50 year low. Wages are going up modestly. Lets look beneath the surface, it is great they are going up, it means incomes are going up and spending will likely follow, and yet they are not going up so rapidly that inflation becomes an issue. We are now 21 months with the Unemployment Rate below 4 , all of which adds to a healthy u. S. Economy. We knew the u. S. Economy was all about the u. S. Consumer, and the u. S. Consumer has been supported by the job market. Kathleen what does this mean for the stock market . There was a story on the bloomberg the last couple of days about how strategists every year have been saying up 10 on stock and this year saying, maybe 5 . They are still seeing gains but not like recently. How about you . Sandip the big driver for stock returns in 2020 will have to be a revival of growth. It looks like Economic Growth is picking up. It must be followed by Earnings Growth. This is a very interesting year. We end up with no Earnings Growth. It will be a flat year. Zero Earnings Growth in 2019. And we had a gangbusters year in the stock market. This year was all about the expansion of the pe multiple. Multiples are full, valuations are full, and the baton will have to be handed to Earnings Growth. There is good news, people expect Earnings Growth to be up about 10 . Theresay that if we see partial resolution of the global trade war, and remember we have seen a concerted effort by global Central Banks to ease recently, that lays out on a lag basis, and so that could combined to make the Growth Expectation come true. I come out in the same camp, looking for a 5 10 year in the u. S. Stock market next year. Paul what about valuations . We have a number of guests who talk about just how expensive u. S. Equities are looking right now. Has the future Earnings Growth already been priced in . Sandip it is priced in, but dont think of the multiple in terms of growth rates or what happens with gdp growth. These multiples are being supported by low interest rates. Lets do some quick arithmetic. As it stands, the pe multiple is 7. 8 times, which seems obscenely high. The average is 14. 515 times. But that was realized when the 10 year bond was at five cents. Today, the u. S. Tenyear treasury yield is well below 2 , of that explains why a pe 1718 is fair and we are not overvalued. If you must look for evaluation bubbles or digressions, it is in the bond market. The bond market is overvalued. We make the observation that this was a unique year for stocks and bonds, but get ready for a disconnect, i think stocks will continue to go up but not so much the bond market, rates will go up gradually. And iff that is the case you are looking to increase exposure to equities, where do you see the best opportunity . Clear first, it is stocks over bonds, and then the question is where in the global stock market do you find the best opportunity . It is tempting to look outside the u. S. Based on valuation, the growth dynamics are poor outside the u. S. The u. S. Economy and u. S. Stock market has the best growth fundamentals. Would stay home from my perspective and focus on the quality of growth. Underneath that type of decision you have sectors to pick from, and given the constructive view of the economy and market i just offered, we are procyclical. It is technology, consumer discretionary, financials and industrials that have been victim of the trade war could yet benefit. Pick theompanies, companies that will be around a long time that have great fundamentals. Amazon, microsoft and visa come to mind. Kathleen how do you feel about bonds . You mentioned they will not gain, it will be tough, if theres any kind of a trade deal, if the economy continues to grow even to percent, the fed is not going to do anything. Looking at Inflation Expectations, there are a couple of the things you can look at, the breakeven rate, the breakeven fiveyear. Let me get on my screen. The university of michigan survey, Inflation Expectations k again. K again wea even if bonds dont rally, is there an expectation for bonds to do anything but for yields to sit where they are for a while . Sandip i suggested rates might go up, let me clarify. They will grow up go up but gradually. Ministryit is such a a mystery. How in the 11th year of an expansion, with the Unemployment Rate the slow, this low, how on earth can inflation be so muted . I will make two observations. The obvious ones are global competition and technology have put a lid on inflation. This is a secular trend. Businesses are getting disrupted left and right. There is a more subtle driver in that productivity gains have gone up. We know average Hourly Earnings from friday in the u. S. Were measured at 3. 1 . When you take the pickup in productivity gains, unit labor costs are up just 2 . These are some of the factors that are keeping inflation low and therefore rates will go up but not back to 3 5 . Paul thank you so much for joining us today. We have plenty more to come on daybreak australia. This is bloomberg. Eak australia. This is bloomberg. Kathleen now for a quick check of the latest business flash headlines. Goldman sachs ended the week on igh, reports sources say the Justice Department and other agencies have discussed penalties between 1. 5 and 2 billion dollars, less than what some observers have been expecting and goldman shares rose on the news. Paul reports from japan say nissan may be fined more than 20 million as part of the carlos ghosn affair. The security and Exchange Commission is ready to advise the Financial Services agency. Oflos ghosn was accused crimes ranging from falsifying documents to using Company Money for his own use and denies wrongdoing. Kathleen coming up, the outlook for oil after opec surprise markets with extra production curbs. This is bloomberg. Whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. Paul 9 30 a. M. In sydney. The market open 30 minutes away. Futures pointing higher by. 5 . We saw decent gains on u. S. Equities friday following impressive jobs numbers. I am paul allen in sydney. Kathleen i am Kathleen Hays. You are watching daybreak australia. Now first word news with su keenan. Su we start with chinese exports which go unexpectedly which fell unexpectedly. Global demand also slips. Outbound shipments of 1. 1 from 23 ar ago and we are down to the u. S. It is the worst reading for exports since february and it is the 12th consecutive month. Monthly decline. Shipping have been expected to increase. Will preventers muslim migrants from winning citizenship. It is the latest move in the hardline internationali