The Trump Administration overstepped its authority. Ntt reportedly planned to take its wireless carrier unit private. At buyout could be valued 38 billion. At thebreaking news moment. We are getting Industrial Production numbers for south korea. Year on year, it should be for the month of august, a decline of 3 , matching expectations, and bigger declines than the previous month. We continue to see some weakness year on year. Industrial production numbers have been in contraction for five consecutive months. When it comes to the previous month numbers, they have been revised slightly upwards but not by much. Month on month, a contraction of 0. 7 which is a contraction instead of just coming in flat as expected so that is disappointing numbers. Perhaps we could see some better numbers later in the year. We do have trade numbers for the month of september. We are expecting it to come up on thursday and exports are likely to see an annual gain in september so lets watch out for those numbers as well. In the meantime, here is a quick check of how markets are trading at the moment. U. S. Futures gaining. 2 . This after we just saw the best three day gains in the s p 500 in the near obsession since april. Nikkei futures gaining. 2 . Watch the japanese yen. Bullish en positions have reached a record high last week also we have seen some weakness in the japanese yen which has sent the nikkei higher. The best day in a month. Kospi futures also jumping 1. 4 while we have sydney futures gaining. 6 . In japan, watch out for ntt because they are now coming out saying that nothing has been decided on ntt. And they will hold a Board Meeting today. The Board Meeting today will disclose if needed. They will make an announcement if the board makes any decisions. Remember, this of course as we had heard from local media. The nikkei saying entities plan to turn them into a whollyowned subsidiary. The company also confirming that they will be holding a Board Meeting, that the board will discuss ntts buyout today, but ntt saying nothing has been decided yet so we will be watching that stock as the japanese markets open at the top of the next hour. Haidi. Continuing to watch emerging markets price action as well with more reasons to be more cautious in that space and optimistic as we enter the trading quarter later this week. We have a number of risk factors encouraging investors to take more defensive stance and stick to safer bets for now. A headphone fun focusing on companies,idsized em julia hermon joins us on the line. Seems like sentiment when it comes to ems turns on a dime. At the same time, you have a strong china rebound. You have weak dollar background as well but at the same time, we are becoming concerned about potentially said tightening rather than they expected a second wave so which narrative do we focus on . All right. We do not seem to have julia at the moment. We will try and get back with her of course, but lets get you the first word headlines in the meantime. The u. S. May put more sanctions on iran to further distance its economy from the outside world. It may target at least a dozen banks and they bought the entire Financial Sector offlimits. Irans economy has been crushed by u. S. Sanctions and further moved to leave it isolated from the Global Financial system. Joe biden says he will return to be 2015 nuclear deal if you wins in note he wins in november. The white house will have to accept much more spending if theres to be any hope of a stimulus to deal before the election. They hope they can bridge the gap between them to bolster the economy with the democrats pushing for more than 2 trillion of new funding. President trump does not want to go further than 1. 5 trillion. Ecb president Kristin Lagarde says policymakers are ready to deploy more stimulus weapons to aid the euro zone recovery as the coronavirus continues to weigh on prospects. Thewarned lawmakers that future remains uncertain and incomplete and consumers are cautious about spending and investment. She says the ecb stands ready to adjust its range of policy instruments as appropriate. The e. U. Says it will not abandon brexit talks with the u. K. Even if Boris Johnsons government retains its plan to break international law. The two sides resumed withdrawal talks in brussels despite the u. K. s attempt to rewrite parts of the divorce bill. The e. U. Says it will continue to talk but that it also renewed his threats to take legal action against the u. K. As the clock ticks down to a nodeal split. Chinas imports of u. S. Goods in the first eight months of 22020 less than a third of the total target set for the year in phase one. Beijing promised to spend money on goods and services next year and this year but has managed just 33 of that overall goal. Soybean imports were under 4 billion in august compared with 14 billion back in 2017. Lets get back to our conversation at hand. Lets try and bring in julia hermon again from the senior global strategy analyst. Lad we got you back which narrative do we focus on when it comes for prospects for e. U. For ems . Do we look at the fearfulness of quicker than expected fed tightening and the waves of virus cases that are taking over again . Julia thank you for having me. I do think that the emerging markets narrative is still very much about stability and resilience. We were quite constructive on the north asian economies of korea, because they were formulating the most coherent policy response to the virus. Over six months later, that still does hold true. Regarding the korean ip numbers and the fact that china is still of the only major economy expected to grow this year, it is a function of the fact that the rest of the world is not catching up much and that is really because it has been manufacturing that has led the Global Recovery so far. Where within the em space do you see the resilience when it comes to consumer led recovery, particularly if we are looking at countries that are going to have to rely on their domestic audience and the domestic demand to do the heavy lifting . That i do think that comes from north asia still and thats primarily because those economies have been the ones able to truly reopen and harness that Services Side of the economy. Another small emergingmarket to highlight which i think sits rather in a good position between the manufacturing and a large domestic market is actually poland, which has been resilient this year. Talked about you manufacturing, but how much of your north asia call also reliance on the fact that it is these north Asian Countries that actually have more new economy stocks, whether it is tencent, alibaba, or samsung and chipmaking, and Tech Companies in taiwan . I do think that tech sits and a nice position between to distract a little bit from the manufacturing story, but it helps deliver some really Smart Services to consumers. Whole text, theres a host of options. Theres ecommerce, simtech, communications. The services that have thrived in covid have tended to be textbased, excuse me. North asia benefits from that. Shery lets talk about some of the challenges. Whatever happens in the white house and the elections in november, it seems a certainty by now that the tensions will continue to build. If you have more bifurcated tech intranets, how will that challenge the rally we have seen in north asia . Julia absolutely. I do not think the tensions are going anywhere. This week hasws established the u. S. Has the upper hand on the tech side of that relationship but i think china really excels at playing the economic long game, meaning shortterm decisions are in line with their longterm strategic ofls and they have a lot incentives aligned domestically. Xi jinping has rallied the Chinese Private sector. Some investors are not necessarily as aligned. Hermann, great having your thoughts. We will discuss our tensions with china will play into the first u. S. President ial debate when Eurasia Group analyst eurasiaroderick with Group AnalystKelsey Broderick later this hour. The latest in the tiktok showdown, next. This is bloomberg. The judge who blocked President Trumps ban on tiktok, said the u. S. Government failed to provide enough evidence that the social media apple is a threat to National Security. The latest on the tiktok saga, lets bring in Stephen Engle. Taking a look at these court findings, what is the biggest take away . Quite a vindication for bytedance. Stephen there were similar rulings as well within this one from chronicles, the District Court judge on tiktok as well as the laurel ruling on september 19 on wechat. Both of these judges prevented the bans on these two chinese apps from taking place. The latest one is chronicles on tiktok. Carl nichols on tiktok the ruling came out just before midday yesterday. They were sealed. Classified content in there. Government position to have it revealed. It is quite revealing actually because both cases, if you are talking about tiktok and wechat, the judges have found there was ample evidence provided by the u. S. Government of china being a National Security threat. However, they could not make the case adequately that these particular apps come in themselves, were threats to National Security. This is what the judge said. The u. S. Provided ample evidence that china is a risk to National Security but added that the governments evidence of the threat posed by tiktok remains less substantial. Therell be a letter, in her ruling on september 19 on wechat, she used the term scant little evidence. Bytedance, the parent of tiktok, would have likely succeeded in proving the Trump Administration exceeded its Legal Authority. The Emergency Powers invoked by donald trump dont allow him to prohibit information materials and personal communications. That is what is in his findings. Given that tiktok is mostly used to share videos, photos, art, and news, it is not plausible, wrote the judge, that only that kind of content would fall under the espionage act. This saga is not over. Second trump executive order that was issued on august 14 has a 90 day period Tiktok Tiktok for the bytedance to sells u. S. Assets to a u. S. Entity. U. S. Assets to a u. S. Entity. The battle between trump and the chinese apps makers goes to the chinese. The tensions continued between the u. S. And china, as you mentioned, how important will the next economic blueprint from beijing be . We know that those dates for when they will drop the plan are out. October 26 to october 29 will be the conclave in beijing. Centralonest Party Committee will meet to draw up its next fiveyear plan from 2021 through 2025. That will be then ratified at the upcoming march National Peoples congress, but it is a critical fiveyear period, obviously, as we are coming through what some say might be a decoupling or even as far as a tech cold war with the united dates. States. Been pushings domestic innovation and consumption. How does that mesh with the fiveyear plan Going Forward and what are going to be the economic and social priorities . What is interesting about this fiveyear plan is that the news agency is indicating that the Central Committee, the top leaders, 200 or so top leaders in the Chinese Communist party, will also be coming up with a longerterm blueprint through 2035. That is interesting because in 2018, president xi jinping pushed through changes to the constitution to allow him to be the president essentially in perpetuity. That brings up more speculation whether indeed president xi jinping wants to go beyond the term that expires on 2023. Haidi Stephen Engle there. Coming up next, it could be the largest ever tender offer in japan. Ntt taking its wireless carrier unit private amid attacks on Profit Margins by the new Prime Minister, yoshihide suga. This is bloomberg. Shery says as board will meet later tuesday to discuss the reported buyout offer from parent entity. They may take the unit ntt. They may take the unit private. Lets get more from Senior Editor in tokyo. What do we know so far about this deal . Good morning. As you say, just before we came on the air, just now, docomo and at confirmed the deal will be matter for discussion at Board Meetings today. Basically, saying that ntt, the docomo, owens 56 , but they were going to buy out the unit, even though they already own so much. It would be the largest tender offer ever offered in japan. The nikkei estimated it could be worse about 38 billion, and that is just based off of the standard for the 30 premium for the shares based on the closing tokyo. Not a lot of speculation about this deal. Came out of nowhere last night. We will have a lot of ramifications on chicagos market today. Haidi what is behind the timing of this deal . The mosti think obvious thing we can point to is the new administration in japan. The administration of Prime Minister yoshihide suga. Abe,he was secretary under he was wellknown for attacking the Profit Margins of japans mobile carriers. The Profit Margins are quite attractive, quite extraordinary. He campaigned over the last several years for the mobile carriers to reduce the fees that. Re paid by customers in japan one government survey, around six cities around the world. They found that data heavy users in tokyo were paying more than three times for their monthly mobile bills. Make a taxued to carriers made from concessions to him. Primehe became minister, he was reducing mobile bills and that was one of his key policies and it seems ntt has decided to bite the bullet and take docomo private. Haidi Gearoid Reidy in tokyo. Business flash headlines this hour. Huaweis cfo resumed her fight against extradition from canada claimsu. S. , saying are so flawed they should be dismissed. She is accused of tricking hsbc into processing transactions that left it open to violating those sanctions. Is counterp lvmh suing tiffany over a planned purchase. Lvmh says tiffany has mismanaged its operations, justifying its withdrawal from a deal. The two sides have declined to sit down and discuss the issue. J. P. Morgan has told thousands of staff across its consumer unit that they continued to work from home. They can continue to work from home. Unit is the banks biggest and employs 22,000 people. Shery staying on j. P. Morgan, the bank is moving about 230 billion from the u. K. To frankfurt in a shift that will make it one of the largest banks in germany. J. P. Morgans head of banking movemea told bloomberg to will happen with or without a brexit deal. Iswhat we have done undertake those kind of moves we need to do to be functional as of january 1, and really, we are with baited breath waiting to see a brexit manifested itself and what does it mean for Financial Services and the like . In terms of being ready, we are absolutely prepared for every outcome. Even if there is a best case reo, a trade deal, how much of an exodus would we see in general out of the city of london . Depends on really what it looks like and what you are able to continue to do and not do. Its a major global liquidity center. Its relevant as it relates to being a major money center. It is still going to be kind of strong and it is not going to be, you know, entirely demolished, but it is inevitable, you know, depending on what it looks like and what we are able to do otherwise as it relates to e. U. Facing clients. You will see some activity move to ag. In our case, the german legal entities will be our flagship pacing entity so depending on what we are allowed to do, you will see an element of activity kind of migrate to the continent. In terms of the amount of revenue j. P. Morgan actually does in the u. K. , will it be 20 to 25 moving to Continental Europe . Or would it be less or more . I think it is difficult to put up for tice put a precise number to it. Its a function of what activities are you going to be allowed to kind of execute from being based in the u. K. . If you take a primary transaction where you look at the distribution of a primary deal, if you take an ipo or equity placement, the typical distribution profile tends to be around, you know, 20 to 30 u. S. Emea. Se, 20 to 30 and then you end up with a portion for the rest of the world. If you look at that activity, a lot of liquidity sits in these kind of Money Centers in the u. S. , in london, and in asia. Precisely to qualify but its going to be entirely dictated by what are you going to be allowed to do in this post Brexit Agreement . Is 25 something that sounds about right, or are we off the mark . Viswas you know, you are in the zip code. I would say its a reasonable to monitorou need exactly the nature of the activity and what you can london ando from what actually migrates to the continent. How difficult has the pandemic actually made the shift to the continent . Know, look, i think, you its clearly, you know, for most folks, its an element of mobility when it was left to the final stages, and clearly now, and the pandemic quarantines, etc. , it imposes kind of extraneous restrictions on that mobility. Clearly, what we are looking at is to be very openminded and flexible so that we can provide accommodation