yvonne: i've been gone for some time now. we had a little bit of a breather today. things have taken a pause here possibly closer to phase i. china saying they want those terrace removed. rishaad: just running into a few obstacles now. we had reports yesterday suggesting that the chinese were looking at places in the u.s. to sign an agreement. it is important. the thing is going to the u.s. to do it would smack of a loss of face. --e we go, nikkei hang seng feeling it a little bit.

yields keep on creeping up. this is the position we find ourselves in. we were looking for 1.7% not long ago. the yen is weakening in the broad face of what has been dollar strength out there. thai baht unchanged. not surprising. interest rate decision later on today. possibility of another 25 basis points being cut. cny sub seven, that is why we wanted to bring this up. just edging stronger it would seem. ourselves with the rally taking place which also petered out in the u.s., though we had record highs for a couple of the indices, but it was a mixed bag overall -- is there also a sense that we could end up with a positive feedback loop as people have this fear of

missing out on the rally? lots of first word news telling us about the world. here is su keenan in new york. su: we start with robert kaplan. he has told bloomberg that he's comfortable with the recent steepening of the yield curve, saying it is a sign that fed policy is in the right place. he's previously voiced concern about having the benchmark policy rate above the treasury yield curve was a warning that it had set rates too high. house, ao the white senior trump administration envoy has testified that the white house did pressure ukraine to investigate joe biden. -- in exchangege for an oval office meeting. the u.s. ambassador to the e.u. contradicted president trump's repeated assertion that there was no quid pro quo. he said he believed the investigation would have to

happen before velotti mayor zelensky would meet president trump and that represents a quid pro quo. a veteran of the shale oil industry says the boom in u.s. production is coming to an end. producersys calls for to shutter rigs and stop burning cash are being heeded with output growth across the u.s. slowing. look fors the out oil is brightening. in hong kong, police used water cannons tuesday night to break up crowds of masked antigovernment protesters in hong kong who gathered in a busy shopping district. shops theyized considered to be pro-china. masks of thes wore

anarchist comic book character of v for vendetta. 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. i'm su keenan. this is bloomberg. china is setting its price for any interim trade deal for the u.s. it is, drop those tariffs. beijing has reportedly asked the white house to roll duties and withdraw the threat of any new tariffs. especially as we get closer to 2020. china correspondent tom mackenzie joining us now from shanghai. tell us exactly what china is pushing for when it comes to tariff removal. of course we've known over the last few months, the chinese have made it clear that the removal of tariffs is a core interest for them. now we do have that clarity in

terms of what they are pushing for. they would like to see the threatened tariffs taken off the table. they also want to see the tariffs on about $110 billion worth of chinese goods scrapped altogether. and they are also pushing to see if the u.s. will consider lowering the level of duties imposed on chinese goods back in 2018. the chinese position is this. if they are going to send their president to the u.s., if they are going to make these purchases, if they are going to put in place this ip enforcement mechanism, then they are losing some leverage. they want to get some equivalents from the u.s. side, hence this big push for tariff removal. is whether or not president trump is ultimately going to agree to that. tom, there are

political ramifications for trump to agree to cutting tariffs, right? tom: absolutely. this is one of the few issues that has bipartisan support in the u.s. both democrats and republicans want a strong deal when it comes to china. tariffs have been part of the enforcement mechanism to make sure that china lives up to its side of the deal. that political pressure is there in washington. trump may confront that if he seen as giving away too much to the chinese side. there's the economic debate as well. the corporate lobby in washington are pushing the administration on issues of the economic pain being felt. you saw a drop in u.s. exports to china of about 10%. conversation between economic pressures and political

considerations. yvonne: what about in terms of china and cracking down on exports to the u.s.? tom: fentanyl is a big part of the considerations for president trump. china by most accounts is the biggest producer of an opioid that the u.s. said is responsible for the deaths of thousands of people in the u.s. see a courtting to case on thursday showing the work that has been done by the u.s. and chinese drug enforcement agents. the timing is significant. the topevidence that line is paying off. it may help him sell the trade ,eal more broadly back home this idea that fentanyl is an

issue that china is taking seriously as a result of the pressure from his administration. mackenzieank you, tom joining us out of shanghai. plenty more interviews in shanghai throughout the day. the head ofhave emerging-market equities. is this what you would characterize, i'll be at today we are seeing a breather, a risk rally? do we need more than just a phase one agreement, which is looking a little bit tentative? taking three steps forward and maybe two back at the moment. >> i think we are having a risk rally globally after a bit of a pause in the summer. part of it is because we are getting less bad pmi's and earnings in the u.s. have been quite good. this is clearly helping and particularly in the asian emerging markets, this has been

a real boost. i think markets will rally into phase one. the general direction will be up. i think in phase one, people will say, has the economic situation changed? a phase one deal is popular for the rmb, for the markets, but is not necessarily going to produce gdp growth overnight. the average forecast now is about 5.8. people have been putting that forecast off a little bit because of the trade deal. the real issue is earnings. we've had what we call a re-rating this year after last year. we had good earnings globally. had year, even the u.s. has lower earnings. is whether real key we have the risk rally

continuing. yvonne: you mentioned pmi as well. we have a chart that shows how things are turning. do you buy it at the moment? we see yields picking up once again. is it time to cut duration? i think you can buy on these dips. i think we still think that yields will be lower for longer. u.s.cularly the everyone has much lower yields. we would be quite selective in emerging-market yields. we've got some good opportunities in indonesia and brazil, potentially in russia at the moment. we would still prefer the credit side. we are seeing, we think, a bit of a recovery. if you look at the pmi's, the service pmi's have held up well.

it is the more open trade pmi's that have gone down. pmi's, japanese pmi's, and emerging markets has really been hurt by korea. that has been the global sector. stabilized, i think we have a better picture. rishaad: japanese service pmi's, for the first time in negative territory since 2016. the question here is, the fed chair did say the future rate decision would be predicated on signs of inflation. that doesn't look like there's any in the pipeline right now. are we on hold for longer than many investors think? if we see treasury yields go up, do you start changing the game as it were? >> i think we do. that is going to be a sign of

growth coming back. equities -- they are looking forward to next year. maybe first quarter earnings aren't so bad in the u.s. we are in a mini cycle slowdown. then we get slightly better news next year. 2% -- rishaad: is it psychological? >> i think it is. if you look at what is happening under the woodwork, between growth and value arguments, particularly in the u.s. and in europe, in september we had the yield curve which had gone down probably too much in august. that caused a huge rotation between value versus growth.

think are saying we don't it is time to be completely overweight value, because we have to hope for a trade deal. we have to hope these pmi's get better. but you should be balanced. you shouldn't be all in these growth stocks. let's start buying some cyclicality, and that would be good for asian emerging markets. yvonne: you mentioned about korea seemingly seeing this rebound. they have really bounced back quite a bit. do you think the effort is ago here? >> i think the earnings will be positive. economy is not in deflation, but we have to watch out. particularly the banks aren't doing that well.

technology, i think it was more hit because of the trade issue between japan and korea. that caused a production slowdown. i do think analyst forecast are two light for next year on tech. korea has gone from being very underweight in our portfolios to overweight. we had a pretty good run in some of those stocks. i think the data will come through very well. rishaad: stick around with us. sean taylor from dws. he's head of emerging-market equities. still ahead, softbank pays the price for we work and the mess there. plus, we hear exclusively from goldman sachs ceo david sullivan and why he says profit matters. this is bloomberg. ♪

yvonne: you are watching bloomberg markets. china markets and the rest of the world looking a little bit more tame today. taking a look at some of these shares of stocks that are listing in the shanghai composite, we are seeing a pretty stellar first day. day if you ared one of these companies. rishaad: certainly. let's take a look at what is going on. ray dalio saying the world has gone mad and the system is broken. he's talking about money being essentially free to those who have credit worthiness and unavailable to those who do not. sean taylor from dws is still with us. it is essentially what has been driving the global economy. it is kind of like just

constantly feeding the heroin addict and refusing to take the heroin away. >> it is, but i think we are getting to the end of that. we can use monetary policy. particularly in this area of the world, where we are not getting earnings in. in the u.s. at least the companies have delivered earnings. the rest of the world is struggling to deliver earnings. the u.s. earnings delivery has been helped by this low credit. rishaad: they've also been buying back shares. >> and that has been a huge part. rishaad: not so much in the previous quarter, but in other ones before that. >> and that will be more difficult. hence why we've got a lower earnings forecast going forward. rishaad: when you have money which is free, you also don't make those decisions that need

to be taken such as structural reform. if it ain't broke, don't fix it. this is the same principle. it is like not fixing the roof while the sun is shining. u.s., thatnk in the is probably not true overall. we have seen some improvement because of that. companies have seen takeovers. what we haven't seen is in the rest of the world, that has been a difficulty. looking at europe, what we are really looking at is defensive quality names that have very low growth, but people pay a high price for, and those companies are struggling, mainly in financials and holding companies. there's a lot of talk about what is the case for emerging markets. when we get reforms happening in places like indonesia, are we

really getting the earnings through? i totally agree with you. that is why our thesis of lower gdp growth but higher quality is better for earnings. that when have seen it comes to emerging-market stocks. to ask ourn we want viewers today, you are saying it looks likely we could see a year-end rally, but what are the potential winners here? which stocks do you think would lead a rally? sean: i think stocks and markets that have lagged. emerging markets in asia is prime for that. in markets momentum like brazil continues. the reform process, we've been talking about it for a year or so. we are really getting reforms coming through. i think the markets that have fallen.

that is why i still think there's further momentum. we would have to get better economic data or less bad economic data for a rally encyclicals. and for financials to rally in asia, we would have to get the yield curve coming up. rishaad: thanks so much for joining us. head oflor, dws emerging-market equities. coming up, we hear from fcc chairman ajit pai on huawei and the rumbling trade war. this is bloomberg. ♪

rishaad: we are back. this is bloomberg markets. tesla completed construction of its new factory in shanghai and is aiming to win a manufacturing license. it has also reached a deal to l as a battery supplier.

tesla nearing the launch of models. expectinging it is tomato shipments to grow next year even if it is blocked from the latest google software. saying the company can rely on demand from its enormous domestic market. huawei six months into a u.s. ban on buying components from american companies. huawei, u.s.ing of regulators are ramping up even more pressure on the chinese company with the fcc set to vote on a proposal to stop government subsidies. the fcc is also considering forcing u.s. companies to remove already installed components. comes to the security

of america's communication networks, we can't take a risk and hope it works. we need to get it right. when we rolled out a proposal, we made very clear that we don't want federal funds to be spent on un-trusted vendors. we are going to be live joining huawei founder, special guests on a panel discussion on the topic of digital sovereignty moderated by our own steve engle. on thek that out bloomberg terminal. let's have a look at what is going on. some of the big stocks we are watching today. we got softbank out with earnings later on. worse than expected according to some. masayoshi son seeing his net worth slide. we've also got perhaps some good

news with the u.s. fcc approving the merger of sprint with t-mobile. indeed, fujifilm, its deal to buy xerox is at stake in a joint venture. fuji, according to them, is starting to benefit from full control of fuji xerox. asahi group shares on the way down. the company lowering its annual forecast. nintendo, a surprise one here, moving to the downside. more good news concerning its switch like consuls. japanonsuls saw sales in exceeding 10 million.

they don't actually split the two devices. they categorize them together as part of the switch family. as we head into the japanese lunch break, seeing modest gains on the nikkei. ♪ the game doesn't end after that insane buzzer beater.

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su: it is 10:29 a.m. in hong kong. i'm su keenan. we start with china, which is said to be seeking a rollback of tariffs on about $360 billion worth of tariffs before president xi will agree to sign and initial deal with the u.s. we are told beijing has asked washington to eliminate duties on more than $100 billion of goods that were imposed in september and to lower the 25% rate on $250 billion of goods last year. u.s. trade with china nosedived after president trump stepped up

tariffs on consumer goods and depend and exporter slump on both sides of the pacific. imports from china fell from the previous month. that is the lowest in more than three years. u.s. shipments to china dropped 10%. in the u.k., former chancellor philip hammond is quitting parliament after being expelled from the conservative party for a prosing prime minister boris johnson brexit strategy. hammond said he made the decision with great sadness and that in the past the tories always had room for a wide variety of opinions. hammond was one of 21 lawmakers thrown out of the party for backing legislation to stop a no deal brexit. hassouth african rugby team received a hero's welcome in johannesburg after returning home from winning the world cup in japan. thousands of fans cheered as the

team captain walked through the airport brandishing the trophy. cupteam will now take the on a five day nationwide tour. 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. i'm su keenan. this is bloomberg. sachs has beenn stung by losses at uber and we work and has a message for investors. profit does matter. ceo days for sullivan speaking to bloomberg about unicorn ipo's and balancing growth with profitability. >> i do think what is happening is the monetary policy that has been rampant around the world has basically forced people out on the risk curve, to look for other ways to drive returns. one of the ways they've been

chasing is growth. there's been a sentiment that if you can hook your wagon to a company that has a lot of growth, that something good will come to that. scented lots of companies to take the capital they are raising and spend it aggressively to drive topline growth without understanding the consequence. i think the market here is kind let's reinpeople, that in a little bit. it is important for people to grow, but there has to be a clear and articulated path to profitability. i'm a big believer that over time the company can only be worth the discounted future value of its earnings. it is important that you have a business model that can generate profitability. >> are you satisfied that uber is headed in that direction? i think you hold about 10

million shares in the company. >> we were an early investor and i think that they are very focused on driving profitability. like everyoneg else. i'm am sure they are very focused on thinking about how they can accelerate that pastor profitability. rishaad: that was goldman sachs chief executive david sullivan. yvonne: investors are awaiting southbank's results. our next guest recently removed softbank from his short seller list. the senior market strategist. always great to have you. walk us through the thinking here. you removed softbank from your short seller list, but you are

remaining a structural short. what is behind that? >> we thought that there's a lot of bad news discounted in the share price short term. softbank ist desperate enough to potentially conjure up some sort of a share buyback, perhaps not as big as the buyback in february, which prompted us to add it to our thet once the news hit share price and pushed it up to the 5500 level. potentially that son could be desperate enough to announce some sort of share buyback with borrowed money. that has been the playbook. the sharehat if buyback does bounce, we will be

ready to pounce on it again. unusual.it is not it has been done all the time. but doesn't this also belie, not but otherrk and uber, investments which are now looking questionable as well on the balance sheet? some are questioning whether this company is becoming a house of cards. , we'vee think that always thought that softbank's accounting standards were questionable. i think this earnings season will be very interesting. i think softbank is going to do everything it can to hide those losses. i thought the 80% purchase of we work, coming and taking a majority stake, yet not posting

the losses or the debt obligations on the balance sheet is very questionable. the way they have done it is, we don't have anybody on the board and we don't have to put it on our balance sheet, which is very questionable. we think that this accounting acrobatics that softbank has been performing quarter after quarter is now going to be ,ooked at not only by investors but also by ministry of finance in japan, which have warned softbank that there will be no loopholes where it can post , and thene and there use that to write off on their taxes. a lot of pressure on softbank over the next few months. yvonne: about the cash flow

issues as well, we have a chart that highlights the cash burn that has played out. you can see when it comes to the cash flow and financing activities, that has been going up. they are raising enough for financing. they keep raising debt to keep investing. the blue line is the cash coming out. that is almost always negative. you are talking about two quarters or so of cash burn. is that likely to stay the same in the third-quarter? amir: i think so. i think there is no particular reason to think any of these ipo's will come in. that is one potential source of cash. , which is aporation listed entity that came in last december -- we were talking on the day of its listing and they

still own 60% of the business and that generate a lot of cash. we also think that softbank group will be under pressure to reduce its stake to raise more cash. and as far as the accounting practices are concerned, there are some talks about them realizing some profits from to offsetotentially the big losses from slack, gardens -- these shares have been marked up from the last quarter and have come down substantially. lockup period is going to end today. it will be interesting to see how the share price performance. there is a lot of troubled investments going on there. rishaad: let's have a look at

the positive. upy got approval for the tie between t-mobile and sprint. how does that affect the balance sheet looking ahead? amir: the net debt from the merger taken off this balance $30t will fall by about billion. $8y've already put in billion more in wework just in the last couple weeks. it is going to be positive for them to free up the balance sheet from that level. i'm a bit surprised. i would have thought that deutsche telekom would have played hardball. if they lowered the merger ratio, softbank would have had no option but to agree with that. it i think they've stuck by

and they've stuck by their ratios with t-mobile and sprint. that is a positive. through, thates will be positive. markup on alibaba, that is also positive. there's a few positives around. we know son is going to draw a rosy picture, which he always does. the question is, will anybody believe him? rishaad: that is a fundamental question. thank you for joining us. asymmetric advisors senior market strategist. yvonne: coming up, gender equality. we speak to the woman's foundation ceo next on hong kong. this is bloomberg. ♪

rishaad: you are back with bloomberg markets. inequality remains one of the most pressing problems in our time. creating and maintaining a diverse and inclusive workforce is increasingly seen as being vital to the success of business and the challenge needs to be faced head-on. yvonne: every wednesday, bloomberg will feature conversations with influential business leaders to find out how they are paving the way for a more equal future. here with the ceo of the women's foundation. the women's foundation is based in hong kong. this wonderful organization is to promote equal participation of women and girls in all aspects of society. i'm joined by the ceo of the foundation to talk about how much hong kong has achieved and

why she still thinks we have a long way to go. welcome. op-edread in a recent that you said that hong kong is not a very welcoming city for women, for working women and working moms. that struck me. we are talking about one of the most important financial centers in the world. why do you think it is so hostile for working women? >> hong kong is lagging behind when it comes to workplace gender equality. particularly for mothers. we work some of the longest hours in the world. 30% of women drop out of the workforce in hong kong due to childcare or eldercare responsibilities. the equal opportunities commission released a disturbing report that more than 50% of hong kong employers said they would not hire women with children. coupled with the

shortest maternity leave in the world. 10 weeks. when you put all that together, it impacts working mothers. one of the other areas you push for is to see greater representation of women in senior leadership roles. i find this really interesting. when people graduate from university, we have more women graduating than men. by the time we get to senior management positions, it is very male-dominated. kong thanrse in hong in other financial hubs in asia. why so? >> it goes back to some of those issues i talked about before. the lack of flexible work and part-time work.

what we need to do is tackle this wholesale and really commit to advancing gender equality. that includes flexible work options, engaging men on taking up those opportunities as well. really tackling unconscious bias , whether that is through training or mentorship, sponsorship programs, really embedding a culture of inclusion. >> that is another very important issue. that surprised to learn the wage gap is about 22% in hong kong. 10 years ago, the gap was actually narrower. so we are going in the opposite direction. gap was 18%.go the

we are now at 22%. ons reflects stagnation gender equality in the workplace. the gender pay gap is around two areas. industries that are female dominating are low-paying. other industries are more male-dominated. it also reflects the lack of women getting to the top, the lack of women in management. the lack of women in management. one of the first things you did when you took over as ceo of this foundation was to advocate for more women on company boards. you were pushing for legislation from the regulatory framework within the hong kong exchange to make this happen. where does that stand now? >> we are pleased to see the

implemented in a change to listing rules that mandates that all companies have a board diversity policy. the exchange also issued groundbreaking guidance for companies seeking to list in hong kong. that is very good. we've had hang seng giant appoint the first woman to its board. but we are still only at 13.4%. malaysia is at 23%. thailand at 20%. australia and the u.k. are at 30%. >> a lot of work to do, but you are at it, so thank you. thanks very much for joining us. yvonne: thank you, and thanks to

the women's foundation ceo there. coming up, we are also going to talk about thailand. raising the chances of a rate cut today. we are live in bangkok next. ♪

battle toailand's keep the surging bought at bay

is increasing the odds of a second interest rate cut. let's get a preview with bloomberg's breaking news reporter. she joins us out of bangkok. tell us what to expect here today. strength is not joke. as you said, it is increasing the odds of a second cut this year. 16 out of 26 analysts that bloomberg has surveyed are expecting the bank of thailand to cut its benchmark policy rate by 25 basis points from the current rate of 1.5%. while the rest are thinking the bank is going to be standing pat. already the bank of thailand has periodically intervened in foreign exchange. in august, they already cut the interest rate once and they have also made efforts stemming the short-term inflows.

to be moreere seems urgency on the part of the , toral bank to act now signal its discomfort in the strength of the baht. if they actually cut the rate, it could possibly lower the appeal of the baht's yield, but you have to keep in mind that currently the strength of the baht has impacted exports and tourism, which are two of thailand's biggest contributors to the gdp. those two are falling short of the bank of thailand's forecast. the same goes for inflation, which has been consistently dipping below the target. yvonne: do you think that rate cut is really going to be enough to stem these baht gains? a second rate cut to actually try to halt this rally? a monetary policy committee

member has said that he doesn't expect a cut would be enough to actually help rein in the surge. look to usebank may other tools at their disposal, especially focusing on the foreign-exchange measures, which be expected.y at the same time, you have to keep in mind that thailand is still cautious about attracting more tariffs from the united states after america said they would be stopping $1.3 billion in trade benefits to thailand. some people see that as a warning shot. there is speculation that thailand could be added to the u.s. treasury forthcoming currency monitoring list. yvonne: lots to look into. thank you.

a preview on what to expect out of the central bank today. rishaad: suggesting there will be a 25 basis point cut. let's have a look at the latest business flash headlines. boeing will waive a bonus this year. chairman saying the move retains the confidence of the board and he is still seen as the right person to guide the jet back into service. two fatal crashes took the lives of 346 people. airlines for united says there must be a global consensus on safety before its members will agree to work again on the aircraft. the european union regulators are looking at january at the earliest.

yvonne: qatar airways is planning an agreement with indigo to funnel more traffic to its network from india. an official announcement is expected on thursday with the ceo saying the move is not about buying a stake in indigo, but a commercial arrangement. expandirways is keen to in the india market. what are we at the moment, just about 50 minutes ago before the start of the session in india -- let's look at the futures and where we are currently. 49 minutes to go. just to tell you what the nifty did in the session on tuesday. we saw the nifty giving up 0.2%. six straightfter days of equities on the way up with regards to that indian market.

we are looking also at the rupee. looking at some of these other markets in play at the moment. we don't have japan. they are off for their lunch break. perhaps showing a bit of improvement here. we do have some conflicting news flow muddying the waters. think once it was canceled, there were questions on where they are meeting, the location, and with the chinese said to be pushing for the removal of tariffs, it could add more headaches. plenty more to come. this is bloomberg. ♪

>> markets are mixed on the back of the s&p closing the day slightly lower. we have worries in the manufacturing sector not spilling over. never mind that. optimism remains also because of that phase one trade deal expected to be signed perhaps in alaska, perhaps in hawaii. index downia pac 0.2%. it is still in positive territory year-to-date, giving up some exuberance. index down 0.3%.

whopping 33%.up a wanting the u.s. to roll back on its tariffs. reduce someperhaps of the tariffs already imposed on chinese goods. by hang seng currently down 0.3%. losses today. it has gone from oversold territory to perhaps overbought. suggesting the hsi is overheating. we are keeping an eye on that. expectations of a rate cut. currently down 0.1%. let's look at where the baht is trading at this point in time. it is weaker. expectations of that rate cut.

baht strength continues to weigh on tourism as well. yuan at 6977. in august, they say you on is in overbought territory. 6896 to thet dollar. rishaad: just looking at the indian markets, this is the position we find ourselves in. slightly to the downside. that would indicate perhaps fair value. we saw a 0.2% drop with regards to the nifty tuesday. looking at the rupee, dollar strength is making itself felt. yields creeping up as they have been for the bulk of

bond markets as we see rallies fizzle out. 6.51%. let's get you to beijing now. we've got the french president meeting with the chinese president. we did have them meeting there in shanghai. this is the official meeting of the two leaders. commonality right now. jinping -- acting to essentially just steady markets here. this is a visit which will no doubt have business left right and center. the french engine maker advanced talks in china. macron has the state

visit taking place in china. that is the image coming from beijing. york, first to new word news. we are joined by su keenan. su: we start with a senior trump administration envoy who has testified that the white house ukraine toe yo investigate joe biden. e.u..s. ambassador to the contradicted president trump's repeated assertion that there was no quid pro quo. he believed the investigation would have to happen before zelensky could meet president trump. in other words a quid pro quo. the dallas fed boss has told bloomberg he's comfortable with the recent steepening of the yield curve, saying it is a sign that fed policy is in the right place. he has voiced concern in the past about having the policy rate above the yield curve.

appear to beates appropriate. bridgewater associates founder ray dalio is not mincing his words about what he calls free money. he used a post on linkedin to talk about cash being easy for those with a good credit rating while it is unavailable to those who don't. this simply adds to what he believes are rising gaps in wealth, opportunity, and politics. he titled his post, the world has gone mad and the system is broken. police used water cannons tuesday night to break up crowds of antigovernment protesters in hong kong. shops theyized considered to be pro china. the protesters wore masks of the anarchist comic book character v

for vendetta. 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. i'm su keenan. this is bloomberg. >> thank you. we are bringing you a live shot out of beijing where we just had the opening ceremony at the great hall of the people and we are seeing vice president emmanuel macron also there. the is all happening at great hall of the people. that was where the opening ceremony was held. china set its price for any interim trade deal with the u.s. -- drop the tariffs. beijing asked the white house to rollback activity and to withdraw the threat of any new tariffs. the question is whether

president trump will agree. tom mackenzie joins us now from the international import expo in shanghai. what exactly is china pushing for when it comes to tariff removal? for china, they've made this an issue in terms of the trade negotiations, removing at least some of these tariffs. now we have some additional details. of course there continues to be this threat from the white house to impose tariffs. the chinese want that taken off the table. they also want a removal of the duties that were imposed in september. they are also in discussions with their u.s. counterparts on potentially reducing the levees on about $250 billion worth of chinese goods. from the chinese perspective, it is about getting equivalents.

if they are going to allow president xi to go to the u.s., if they are going to buy more products from the u.s., then they want to make sure they are getting something of a quid pro quo well from the u.s. and that involves reducing the tariff burden. the big question is whether or not president trump will agree to that. rishaad: there are political risks for donald trump agreeing to the cutting of tariffs, especially in light of an as well asming up bipartisan support for a more hawkish way of dealing with .eijing in the background >> tom: it is one of the few issues that unites democrats and republicans. taking a hard line on china.

that is why lawmakers in washington, many of them will be reluctant to see all the tariffs removed. they see those as something of an enforcement mechanism to ensure that china lives up to its part of the deal. the economic damage is becoming clearer by the day. you saw that in september. u.s. exports to china fell 10%. clearly the white house has to try to balance these competing issues. the politics and the economic impact. those discussions will continue. tom, thank you. tom mackenzie in shanghai. tom will be back for an interview with andre hoffman. let's get to melbourne.

management asset global market strategist, where are we now with trade talks and this reputed phase one deal? we seem to be going full steam ahead, and suddenly we are and more few jitters shadowboxing if you will. specter has been raised in terms of what they are asking for. it really is about the removal or repeal of some of the tariffs that have been implemented. you could get something signed around a phase one deal in the coming weeks. the details are likely to take off most of the low hanging fruit. anything around removal of tariffs is going to be conditional. i wouldn't expect that to

transpire straightaway. when we look at what the markets have priced in, a lot of this good news has been reflected. for us, as the pendulum swings back toward positive news, there is a chance it is going to swing right back. rishaad: that is the danger, certainly. have the stakes been raised in some regard by a form of cultural dissonance? we've had chinese officials telling us they are looking at places where they can sign a deal in the u.s. sign a phase one deal in the u.s. would be regarded by some as a loss of face. perhaps the chinese would want more. certainly you could argue the

optics of a deal. still be signed in a third country. perhaps brazil or somewhere else. it comes back to how much around face-saving contrasts what you are seeing in terms of the economic weakness in both economies right now. it is clear that that is transpiring in this trade war. both is a real need for sides to come to the table on this. i think the economic consequences probably outweigh face-saving to a certain extent. sustained?rally be upside potential for earnings is limited? i think there's enough momentum around the trade talks and the economy right now as

many investors look to see what some of the business surveys are telling us. is the only way you hear from central banks as they take a pause on rate cuts. i think the bigger question is that the earnings outlook for next year is not so great. after such a strong year-to-date return, it is difficult to see that being repeated in 2020. i think there's definitely a case of caution around how much the markets have moved and the expectations being built in. it seems that investors are looking for the best possible outcome. >> what should you focus on? how would you play it? a caset now it is still

for caution. we've been here a few times when it comes to the trade argument. we haven't heard from president trump and his views on this. there is still that uncertainty. i think it is a case of making sure that as bond yields move higher, they start to price in trade. and certainly will be an environment where equity returns will be lower. i think that is a case of looking for that protection, maintaining that focus on quality. that theirg portfolios are robust. rishaad: thank you very much. stay with us. beijingt you back to

and have a look at this welcoming ceremony taking place between french president emmanuel macron and chinese president xi jinping. that coming on the backdrop of trade talks with the u.s. and also against this backdrop of the shanghai import expo that those leaders attended yesterday as well. xi jinping renewing his pledge. with thehost of others french president hoping to sign deals with the chinese leadership and chinese corporations as well. that is the scene in beijing as the time approaches 16 minutes past 11:00 a.m. ♪

>> welcome back.

another asian central bank is taking the spotlight today. thailand looks to cut again as it battles to keep the surging baht at bay. the strongest performance in of periodicdefiance intervention by the bank of thailand. still with us is carrie craig, j.p. morgan global market strategist. isn't it true that there is nothing much they can do to rein in baht strength? down to what is happening in the rest of the world when it comes to currencies. that means what is happening with the u.s. dollar and the federal reserve. central banks are taking the lead from the fed. there has been a significant amount of easing. central banks are taking a breath as they see what the ramifications are from trade.

my view is that there will be further rate cuts to come. you will see that softness in the economy probably continue. the question is, what will that deliver on? they are not going to drive that growth and it really is coming back to thinking about more fiscal spending to see that growth and those inflation expectations. it has a lot to do with thailand's current account surplus making the currency a haven play. do you see that continuing? the only difference is looking for that realm of safely right now. again, to change, you would need

to see that growth in the rest of the world start to lift and people look for investments elsewhere around the world. to the view ofck thinking about central banks not having all the necessary tools right now and thinking about broader policy development to shift the narrative. rishaad: [indiscernible] reflected?o how much is actually what the fed does next important for market participants? or is it that people got fixated by it? they have become fixated by what central banks have done for the last decade. qe has changed how markets have operated. it is still the case they look to reallytral banks

drive markets higher, to lower those discount rates, to make valuations -- there are constraints on what monetary stimulus can actually deliver. in the case of europe, deposit rates are having a detrimental effect on the banking sector. you are hearing it from central bankers in australia as well that monetary policy is into be all and end all and is not going to change those expectations around the world. haslinda: thank you so much for your insights today.

plenty more ahead. our stock of the hour is next. this is bloomberg. ♪

you are watching bloomberg markets. tesla completed construction of its new factory in shanghai and aims to win a manufacturing license there. model three cars are already being put together at the plant as part of a trial phase. tesla is nearing the launch of china made models months after breaking down on the facility. boeing ceo will waive his bonus this year and decline equity grants until the grounded 737 max plane is flying again. they say he retains the confidence of the board. boeing's best-selling

jet, but has been banned from the skies following two fatal crashes that killed 346 people. it is that time of the morning. stock of the hour. [laughter] haslinda: tell us more. yes, we are looking at nettie bank. this is a health care company in australia, not doing too well this morning. it slumped as much as 12%, the most since 2014. cts higher expe claims driven by higher private has to bow -- hospital payments. if you look at how analysts are looking at this, six out of 12 sell the stock.

[indiscernible] rishaad: ok. let's quickly have a look at some of these stocks which have been making headway on their debut in china. have a look at this. we are moving to the downside. some of these companies have not moved to the downside. let's have a look at some of them. let's look at blue major biotech. makes filters and therapy products as well as other products as well and soothing skin care products. hope shot up. .his is a software firm

internet of things very much at their core as well. that is a company which is biotech focused and that is on the way up. ♪ y95óóo

haslinda: you are looking at live pictures out of the lion city. we are in the middle of the training -- the trading day and singapore mulling over expanding financial incentives. helping to fund all these initiatives for southeast asia as the authority of singapore, the de facto central bank, look at these loans, insurance, some of the things it is considering. let's get the first word headlines. su: new zealand, the unemployment rate rose more than expected in the third quarter as

hiring and wage growth slowed. the jobless rate climbed to 4.2% from an 11 year low in the previous quarter. there is an increase of 4.1%. the rbnz is poised to cut interest rates to a fresh low next week. traders arehows less certain. the former u.k. chancellor philip hammond is quitting parliament after being expelled from the conservative party for closing price -- opposing opposing johnson -- boris johnson's brexit policy. hammond was one of 21 lawmakers thrown out of the parliament's legislationtacking to stop a no deal brexit. the internationally recognized government of yemen and struck a peace deal in saudi arabia, entering --

anding a split. this means that yemeni prime minister will return in a week with a new cabinet open to all parties and that includes the secessionists to be chosen within 30 days. >> i hope it will be a new chapter in yemen with stability. i am sure saudi arabia will stand next to the people of yemen. news 24 hours per day, on tictoc on twitter, powered by more than 2700 journalists and analysts. this is bloomberg. have a look at what is going on in the markets across asia, taking a look at gains but weeeing are off the highs of the day. hang seng made a recovery and flirting with the gain line as is the cost be. singapore,hanging in adding to a two tents of 1% to

climb. market wasorget, the on a six-day winning streak last week as well. and mixed bag, waiting for more on trade, looking for clarity on the phase one deal and what constituent parts may be. fears remain about whether we will get phase two and three as well. blockchain technology is rapidly moving into the mainstream. our next guest runs one of the leading players. good to have you with us. it has been one year since we saw each other. facilitates, what kind of attraction are you seeing? >> i am pleased to see how much ,raction people are seeing with

solving problems with digital assets. there has been hype in the crypto ecosystem, lots of experience and we are able to look at what we're doing with x rp and accelerate the adoption and help banks take advantage of what is possible through digital assets. haslinda: brazil is an entrenched player. companyok at swift as a that has defined how cross-border payments have been enabled. couples existed for a decades come almost four decades, how the system works. we feel there is an opportunity to bring the system into the internet world, where today, a transaction can take days, you don't know for sure that it has arrived. it is like a postcard. your friend says i received that. in the world of the internet where people expect, i can order an uber and it shows up right expectationsre the

people have without financial systems should work in the modern era. me, where does this go? at effectivelyok what we've got, so many cryptocurrencies out there. you are one of the front-runners . are there too many of you guys? >> i agree with you. i think there are too many. there are around 3000 different digital assets trading at it -- on a daily basis. a lot of people run into new markets and try to show they can solve a problem, they can deliver a customer need. i have said publicly that i think 99% of crypto probably goes to zero. but there is that 1% where i think it is focused on solving a real problem for real customers, is able to do that at scale and that will be game changing. i think that will continue to grow in the decades ahead. whyaad: one of the reasons

there is so much instability in terms of price, you want to be a unit of transfer. the problem is, if you transfer some money to somebody else, that may be worth much less by the time they want to cash it in if they do cash it in. how do you actually produce stability in all this? >> turns out this is a false narrative. when you enable a switch transaction, volatility is a calculation of time and volatility. a swift transaction can take two or three days where as an srp transaction takes two or three seconds. the volatility of a swift transaction is higher than in a rp transaction because of the time. we did a post explaining the math. turns out the volatility risk is lower with an xrp transaction. haslinda: the selloff and ripple , it is bigger than expected.

ripple isloff in xrp, a private company with shareholders. you can't trade ripple shares. xrp, we pay attention over the long haul. i tell employees, i don't think about it in three days, three weeks or three months. taking advantage of what digital accents can do is a journey we will be on for a decade or two. i don't think about the price of xrp in the short-term. if we can abe -- enable it to be efficient by the speed and cost of a transaction, more people will use it. haslinda: nothing to be worried about when we take a look at the selloff? >> there will be continued volatility broadly in crypto. the market moose together and there is times when it outperformed and underperformed bitcoin. but i am optimistic where we will see the whole market. people, other people,

the big players want to get him on the action. i'm talking about libra. what are your concerns about libra, the things that libra represents that are good? >> what is good is, a number of people in the crypto space and what ripple has embraced is the idea of, how do we reduce friction and cost and bring people who are under banked into the financial system? that is a vision we embrace. facebook's effort to go direct to consumer is one approach. the challenge is that all financial systems are built on trust. the lead horses around libra, i think it is fair to say, facebook has had a trust deficit based on a lot of things that happened and what they have done. i think it will be hard for libra, using that foundation of trust from facebook to get a lot of momentum, as you know, there

are lots of regulatory questions that are not yet answered. the good news is, key people like marcus -- mark zuckerberg says they won't go live until these are solved. haslinda: jamie dimon says it won't happen. >> it is too soon to write it off but there is a lot of excitement and enthusiasm. you see mastercard and paypal step away but a lot of that is because the regulatory uncertainty. facebook took an aggressive, maybe naive approach that they could run into this and do this despite concerns. the way ripple approaches this world is, we will work with regulators from the earliest stages. we did that in singapore and around the world. that served us well in terms of building momentum. question, we got so many of these cryptocurrencies. many will fall by the wayside.

how will this echoes system look a year from now -- this ecosystem look a year from now? >> i think it will continue to evolve. years ago crypto was kind of a silk road illicit use case and it moved to a speculative bubble. in will continue to see it 2020 and beyond, focusing on utility. how are these digital assets solving real problems? absent that utility i don't think you will see the whole market grow and live up to its potential. that is why ripple has been focused on a specific customer and problem and we have been fortunate to build a lot of momentum with that customer set. haslinda: good to have you with us. ripple ceo brad. still to come, and is to -- an interview with a swiss chair from the china import expo in shanghai. this is bloomberg. ♪

haslinda: welcome back. astrazeneca says it is committed to growing business in china. the ceo said the u.k. drugmaker is poised to discover the nexus of -- the medicines of tomorrow in the people's republic. -- divertn't diverge resources. we have to invest in china if you look at the momentum we have experienced in the last few quarters. we have to continue in china. the needs are enormous. rishaad: our china correspondent is standing by with more in shanghai. take it away. tom: i am joined by the vice chairman of roche. thank you for your time. we are hearing from the ceo of

astrazeneca saying the needs in china for pharmaceuticals being produced are enormous. what are the opportunities for your company? andre: our company specializes in one type of [indiscernible] needs are huge in china. only cancer but we do cancer a lot. we do it in the most effective way. since we are here in china, the has of cancer survival rate gone to 41%. [indiscernible] we are looking forward to be able to [indiscernible] proportion of the overall business comes from china? andre: it is not measurable at the moment because it moves fast. we had deregulation [indiscernible] cancer, which affects many in china.

we are helping develop new technology not only in terms of a cure but in terms of diagnosis. our business [indiscernible] and the fact that we have early detection systems allows us to tailor make our treatments [indiscernible] tom: can you give us a sense of what proportion the chinese market will make up the total business in two or three years time? do you have a sense of how quickly that is going? andre: it is growing fast and we hope to bring it back [indiscernible] coverage, being discussed by the government, should make the drugs more available to patients which will allow us to treat more patience here and in the rest, comparitively, [indiscernible] so yes, it will become as important as [indiscernible] tom: how competitive would you say china's drugmakers are at

this point year ago andre: very competitive. this is one reason why we introduced new discovery center, which we just introduced in china. this will be some of the most [indiscernible] europe and the u.s., so we are hopeful this will allow us to bring new solutions to the medical needs here in china and the rest of the world. you mentioned your cancer drugs. they are losing market share in some developed markets like europe that they are growing here. how long do you expect that to continue? andre: we introduced the chinese market [indiscernible] happen on the rest of the planet, because [indiscernible] and that is very hopeful. we have alternative production a newce, in particular

liver cancer modality that [indiscernible] other types of projects, introducing product for [indiscernible] these are a great success outside of china and will be introduced here, as well, and we expect to follow the same [indiscernible] m: how far are you prepared to go to reduce prices to ensure you get access to the market and how do you balance -- balance that with the volume? we should look in terms of outcome. as long as [indiscernible] make a difference in terms of outcome for patients, pricing is a negotiation, not something that should be handicapping the development of the drug. over the years, we have produced of products in a number locations and we never had a

particular issue with pricing. what kind of volume expansion would you need to offset the price cuts you may be looking at the aga andre: we don't look at it in that way. [indiscernible] what the patient needs tomorrow, and if we need to adapt to local circumstances we will do so. [indiscernible] the point is long-term positioning in the market. in: the generics business terms of drugs is expanding. what impact do you expect that to have on roche's operations? andre: i don't think i can comment on the generic market in china because it is [indiscernible] that be the only one [indiscernible] facing the same situation in other parts of the world, and so far we have been able to manage that challenge. tom: give us a chance -- a sense

of how many new drugs you plan to introduce. andre: we are going to three or four new molecules per year. it will be at least two per year. tom: the trade war is another headline story, the two sides getting close to some kind of deal. do you expect that to be a positive catalyst in your industry? andre: [indiscernible] able to manage a free trade agreement with china [indiscernible] this has helped us [indiscernible] .iplomatic efforts at a company level, of course free access to markets, in particular access to the patient's to whom we want to deliver our product, is important and the future belongs to [indiscernible] happening at the moment. it would be important that we have a flow of ideas and access to markets, and we will do what

we can [indiscernible] : will we ever get what point where we have an overall cure for cancer? andre: you would have to define cancer. on that and are able to provide solutions for certain [indiscernible] talking about curing cancer is a little like trying to [indiscernible] not going to happen. cancer is a lot of different, there are lots of different cancers and [indiscernible] we need time to look at them one by one. the new technology [indiscernible] impact.m lasting but it is very early. tom: an investment in china, will you be ramping up in this market? andre: [indiscernible]

tom: thank you very much. ,ice chairman of roche investing hundreds of millions as thes francs regulatory environment changes in china, the demand remains strong. haslinda: tom mackenzie live from the china international import show. roche shares up 21% year to date, reaching a high recently, 24 out of 27. let's stay with markets. india's markets just opened. let's get right to mumbai, where our correspondent takes us through what to expect from today's markets. market snapped a seven day gain streak yesterday. how are things looking today? bute had a negative start

[indiscernible] 100 points, and as we have been highlighting, nifty has been approaching [indiscernible] 12000 and that is [indiscernible] mark for the second time. whether there is any sort of buying that comes at the lower-level, in the broader markets, for nifty, 500, a decline for the entire [indiscernible] of the decline and in the last few trading sessions, we have seen selling coming up from the domestic institutions though some support is being lent by the fi communities. rishaad: tell me about the stocks you are watching. we have [indiscernible] as well? , a lot of these companies are in focus. titan came off with a weak set of numbers below what was expected. [indiscernible]

guidanceom an earlier of 20%. in negative option [indiscernible] and the guidance and in fact you have jpmorgan, morgan stanley downgraded. on the other side, good set of numbers, the [indiscernible] brokerage like morgan stanley increased the target price and the management highlighted they will continue with growth momentum in the second half. no major reaction in the stock [indiscernible] weak set of numbers expected owing to week prices globally and [indiscernible] be compressed.ll at the 10ould come in quarter low and the stock has been numbered performing -- underperforming. rishaad: thank you so much.

expecting huawei growth. we have details on that and more next. this is bloomberg.

haslinda: a quick check of the latest business flash headlines. qatar cutter airways -- airways, an official announcement is expected soon. they say the move is not about buying a stake in indigo but nearly a commercial arrangement. is keen to expand in the indian market yet plans for a new carrier have been frustrated over foreign ownership rules. minerrld's biggest gold lowered its full-year production forecast. seen at 6.3put is

million ounces against last month's projection of 6.5 million. assets acquired in a merger with gold adding to the pressure [indiscernible] biggest loss in a month. paying the price [indiscernible] we work and uber. his net worth plunged $6 billion aggressivelyegy of backing tech pioneers backfired. .hey will give details the earnings release is expected to be down for both uber and we work. while way expects smart phone shipments to grow 20% next year even if it is blocked from the latest software. they say the company can rely on demand from its domestic market

and improving in-house software. while way is six months into a u.s. ban on buying key components from u.s. producers. we will be hearing live from huawei's founder. he will join a panel discussion on digital sovereignty moderated by our chief asia correspondent. info is online and on the bloomberg terminal. let's take a look at where we are in terms of markets . where asian stocks are now, market exuberance taking a breather after the s&p ended slightly lower overnight. the benchmark index down by 0.1%, hang seng pretty much flat.

the sep, the central bank expected with a decision later today. at 3020 69. this is bloomberg. ♪

taylor: i'm taylor riggs in san francisco, in for emily chang, and this is "bloomberg technology." coming up, a record low. uber stock sinks tuesday. food orders lag in the lockup looms. we have details. plus, what is going on for its biggest investor, softbank, which is poised to post earnings? plus, peloton posts earnings but investors question the path to profitability.