tv Bloomberg Daybreak Asia Bloomberg November 18, 2019 6:00pm-8:00pm EST
>> good morning. we are under an hour away from the market open in japan and south korea. >> good evening from bloomberg's headquarters in new york. >> welcome to daybreak asia. paul: here the top stories we are covering. tension arises in hong kong as police close in on university protesters. the government calls for them to surrender as washington rose
increasingly concerned. it is the economy. jay powell -- fed chief jay powell holds where face-to-face talks with president trump. >> warnings from within the fed. rosengren eric morning policymakers against putting financial policy at risk. we will hear exclusively from him. and now, back to sophie for a look at australian markets. higher.6 200 is opening a2 milk leading the pack. aining 17% after reporting better margin outlook. checking in on the aussie dollar. ahead of the rba. still clearly and a focus for the currency. 1% ancks are adding on hour into cash trade. futures holding steady in chicago. let's see how we are sitting up in hong kong. hans sang futures are under pressure after the rebound.
speculation that chinese funds are providing support for the market. even so, there is some investor caution given they are rethinking their positions with the increasing violence in hong kong. we did have the hans sang in the hong kong index regain their 50 day moving averages. let's jump to the terminal here for a check on the offshore. steady around the 702 handle. after retreating on monday, trade and uncertainties. 100 day moving line may serve as reports for the currency. the offshore yuan has traded strongly since november 5. that is the yellow line -- the yellow circle on the chart. paul: let's check in on the first word news. >> the house of representatives will accept delay until the end of the month on its subpoena for president trump's financial records. this means the supreme court on
not need to make an immediate decision in the case. financials information secret. the court is also considering a separate filing that would prevent the president's tax returns from being turned over to a new york prosecutor. the bank of japan's role as the prime mover in efforts to revitalize the economy seem to be coming to an end. the pendulum is humming away from years of monetary policy towards physical measures of a global calls for government to do more to stimulate growth. it is a turnaround from the boj, which as recently as september, had been confident of continuing deepening -- from interest rates. india's budget deficit has ballooned to $20 billion and is set to widen further as the economy struggles with the global slowdown.
2019 budget deficit is now expected to reach as much as 2.2% of gdp from an initial target of 1.8%. climbedcit is already to above $20 billion as of the end of october. ousted bolivian leader eva more or less says the country's legal head of state should be a 32-year-old senator from the majority socialist party who was elected leader by the senate last week. moralesissed -- dismissed the rival leadership claims the presidency has been recognized by the u.s. and brazil. morales's allies have a majority in both houses. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.
this is bloomberg. the violence continues in hong kong is a two day universities huge is raising fears of a bloody crackdown on hundreds of protesters. that is police and activists again featured raging fires and teargas. carrie lam called on protesters to heed to the police. the u.s. is saying it is her responsibility to restore calm. gravelynited states is concerned by the deepening political unrest and violence in hong kong including the standoff between protesters and police at hong kong polytechnic university and other campuses. we have repeatedly called for restraint, all parties in hong kong. violence by any side is unacceptable. the hong kong government bears primary responsibility for bringing home to hong kong. unrest and violence cannot be resolved by law enforcement efforts alone. paul: senior international
editor jody schneider is in hong kong and joins us now. that siege at the hong kong polytechnic university ongoing. what is the latest on the ground. are stillars there several hundred reports -- reports that there are still 700 protesters are students trapped. the question is, how did they leave, and when to they leave? yesterday, as you noted, we saw teargas. we saw a raging fires. we sell vehicles on fire. it looked like a war zone. some students managed to escape the authorities did allow some first aid workers on to treat some students. they took them to hospitals and that they would be arrested later. there was a concern about how this ends. they would get the students of
the campus. we heard from the government saying that people had been warned and that they need to leave. we saw some protesters, thousands of protesters come out -- inight in favor support of those students. the real question is, how and when does this end? the world is watching what happens here. a lot of our attention is on those dramatic scenes at that campus. what other signs of disarray are there around the city? it is not just confined to the hong kong polytech is it? >> it is not. that is where we are watching at this point. we did see some smaller demonstrations yesterday around town and including in the financial district. there was much time protests. again, it is the larger situation, five months of
protest and what that is doing. we have seen schools are shut for a sixth day. we have seen continued cancellations of things including a major music festival that was to happen. now, there is talk that the district a less dense -- the district elections could be postponed as well because of this. the government is saying they hope to go ahead, but they are going to have to watch the situation. some fear that if those are canceled, that could make things even more chaotic in hong kong. >> we just heard mike pompeo saying the united states one's everyone to be careful. -- and it states once everyone to be careful. not really coming out that strong. what else can they say? is it going to help the situation or inflame it? >> that is a good question. mike pompeo stated he is gravely concerned.
we have heard from senate majority leader mitch mcconnell saying he wants to hear from president trump in support of the protesters. we have not heard much from president trump on this. there is concern that china from the beginning has blamed foreign governments for being behind the protest, particularly the u.s. and the u.k. it is unclear whether the u.s. and the u.k. and someone like president trump coming in in support is going to help this situation. it is a situation between protesters and the authorities. we did hear from the chinese central government. we heard from china's president violenceg, saying the needs to stop and hong kong will not allow the violence to continue. >> thank you so much. our senior international editor joining us from hong kong. president trump met with jerome
powell on monday where he discussed negative interest rates and the economy. the president went on to tweet it was a good and cordial meeting. let's bring in bloomberg congress editor joe sobczyk in washington. a little bit of a surprise for the president to say something nice about jay powell. is it because he just had a face-to-face meeting? joe: this is the first face-to-face meeting they have had since february. they have spoken over the phone. if i was weeks and months of tweets from -- it follows weeks and months of tweets. it might be that the president is trying another approach. he has not been successful so far with his rather aggressive stance and insults to powell. chance thatleast a there is a cool down in this relationship going forward. he did mention one of the things
he frequently does, negative interest rates, which fed officials have said is probably not right for the u.s.. powell, for his part, is very careful to emphasize the fed's independence. the fed put out a statement saying they did not discuss monetary policy going forward. and that the fed would continue seeely on the data they from the economy. >> steve mnuchin, the treasury secretary, was part of the meeting as well. past, treasury secretary's have had regular meetings. the story say he was the main guy who pushed for jay powell to become the fed chair. so how much trump has light that. what role do you think he played in getting this meeting together and setting it up so it did at least, on the surface, have this cordial tone? himself inhas put
the place as a mediator for trump in number of situations on trade and in dealing with the fed. that has been to keep in check impulsiveent's more outbursts regarding the fed. obviously, that has not always been successful. it may well be that mnuchin is trying to be the peacemaker here. it was certainly -- a lot of people report it is much easier to deal with the president face-to-face in some of these situations. that may have been part of what was behind this meeting, which was rather -- somewhat informal. it was in the residence rather than the oval office and took about half an hour. also have aere, we
suggestion from president trump. that he may be prepared to provide some written testimony in his own impeachment inquiry. what is the latest? takingdemocrats are not this as a serious of her. thep, in the past when mother investigation was underway, said he wanted to testify. he never did. he provided some written answers. essentiallys are viewing this as a -- as something that trump is putting out there to show that he wants to be cooperative but does not have any intention to follow through. it would be rather unusual. he would have the opportunity at the next stage to come in and testify or at least have a lawyer present to question moving onif this is to a drawing up of articles of impeachment.
there is no imminent plan for the president to show up on capitol hill to face questions from the house impeachment inquiry. bloomberg congress editor, so subject. still to come, are exclusive conversation with eric rosengren. he warrants the increase of 2% inflation could put financial stability at risk. display a on china number of macro headwinds. we will get the top trades next. this is bloomberg. ♪
little higher. the u.s. each doubt minor gains. this is a little bit. we will see when the market gets trading on the cloudy tokyo day. this is daybreak: asia. paul: let's get an investors approach to asian markets as u.s. stocks hit records. evans investor partner joins us here in sydney. i wonder if i can't start a little closer to home in australia. we have the asx near records. do you think it is time to take profits? are you expecting a pullback? >> that is right. the asx is at record highs. last week, we had a large number of those blue-chip stocks that we hold in a number of our portfolios. all actually hit record highs. we have had a terrific run. we are finding this a concern at the moment.
the reason is we have these elevated valuations. they are having this uncomfortable marriage. as well as elevated risks in the global economy with macroeconomic risks. we do not think the current valuations are sustainable. we are looking to trim stocks that have done well for our investors. we are still happy to have a broad exposure to australian equities. for those winners, we are taking the opportunity while the prices are high, to increase our cash reserve. paul: definitely not an issue confined to australia. we had an earlier guest saying it is time for a pullback. you hold cash or where do you go to look for a yield? >> it is a tough question. in a practical sense, we can either build up a cash reserve, but as we'll know, the interest rate are not making for a very comfortable yield generation.
or, we can look to invest in other asset classes. what we are looking for the moment is reallocating some of those cash reserves into income securities. they are listed on the share markets. we look at some of the short data on the corporate debt hybrids. those are to generate the additional yield and put a deposit on the secondary market. the examples are looking quite expensive. thated to be mindful of when looking to invest. you look -- let's start by looking around asia. you're looking for alternatives, do you see markets where there is value rather than in a sense, they have gone up a lot. i do not want to load up. if anything, i went to pervak. want to pervak. >> we do still see a value in asia.
it is one of those markets we are looking to. if we see short-term negative news flow or headwinds, in china, we are seeing that. your previous guest was speaking about hong kong tensions. we are seeing an impact on the markets. we are also seeing some negative news flow around growth. we saw the reason gdp number for china came in at the low age of the pboc's target. if we look at 6% on the global scale, it is an attractive growth rate. here in australia, the gdp figure is 1.4%. china is still growing quite well. we do still see opportunity for investment. we want to be selective. if we can find those companies that are more skewed towards the future growth of economy, being the service led growth, we are happy to invest. on a viewbase this that the trade war has taken a
toll on china's manufacturing industries? that even if there is no deal right away, even if this does drag on the 2020, number one, services will hold up, and number two, the pboc signaled yesterday the small move, is in the wings, ready to do whatever needs to be done. right. is historically, the pboc has seemed willing to be forthcoming with stimulus. this really adds to our long-term thesis on the chinese market because they do have the ability to provide policy and fiscal stimulus that can prop up the market from time to time. even if the trade work continues on, we will see some negative impact. particularly in manufacturing. some companies have chosen to move their operations to other countries, namely taiwan.
if we see the short-term impact, it is continuing to focus on the long-term fundamentals within china. namely, that is the demographic trends. very positive with a younger population. also, the growing middle class and the demand from them. that keep usnds interested. paul: specifically to those trends, do you have any names or anything specific to tell us? >> we do have one company we really like on the chinese market. it is called trip. it is china's largest online travel agency. lookinggood example of at the uneasy marriage between the short-term headwinds and the longer-term growth trends. their most recent earnings were a pullback in their share price because management pointed to a weaker outlook for travel in hong kong as a result of the protest. we are seeing negative impact. you can see the potential for
much growth within china when we look at incredible stats like only 10% of china's population actually owns a passport. we can focus on the longer-term. there is a long runway for growth. paul: more broadly in china, we did have the pboc's third-quarter report suggesting more support is on the way. is there anything you're looking for? see monetaryike to policy stimulus. would love to see something more on the fiscal side. urbanid allude to some rail network infrastructure. that would go a lot further in crossing a number of sectors. we would look for that. paul: evans and partners investors advisor, lucy mom. -- lucy mark. on your terminals.
asia.s is daybreak i'm kathleen hays in new york. paul: i'm paul allen in sydney. let's get a check on the latest business flash headlines. chinese consumers are rediscovering their appetite for iphones. shipped 10ound apple million iphones in china during september and october. that is a 6% increase from a year earlier. that confirms the iphone 11 is selling more strongly than its predecessor. is denying racism claims from singer will.i.am. he tweeted that a flight attendant called the police on him for not stowing his laptop. he said he did put the device away and accused her of behaving
in a racist manner. qantas says it has investigated but found no evidence to substantiate his claim. paul: volkswagen says germany tops california as the best place for tesla to make cars. investors the infrastructure is probably superior following elon musk's decision to build a factory in berlin. tesla is expected to announce an >> electric pickup later this week. we worked says job cuts will begin this week in the united states. told staff in any amount that they will improve efficiency and accountability. bloomberg has learned about 2000 jobs could be a limited. ork's globalwew workforce. up next, our exclusive conversation with boston fed president eric rosengren. he is the guy who dissented
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>> this is daybreak: asia. pompeory of state mike has caught on hong kong chief executive carrie lam to allow an independent probe of protest incidents. his comments came as tens of thousands of protesters took to the streets monday night to support demonstrators who were trapped in a stand of with police at the polytechnic university. pompeo says the u.s. is watching the situation and urges restraint on all sides. president trump on twitter said today he would strongly consider testifying in the impeachment investigation. that is after speaker pelosi
said the president could testify in writing. in new delhi is seen as causing damage to the indian economy. andr tourist arrivals school days. india's losses from pollution rose four times between 1990 and 2013 and $560 billion. japan remains the top foreign holder of the u.s. treasuries in september after reducing its security holdings by the most sense to thousand. bonds fell byits about $29 billion. japan overtake china as the largest non-us quarter of treasuries in june. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.
this is bloomberg. >> thanks so much. forrillion markets trading half an hour -- australian markets trading for half an hour now. what are you watching? >> shares are moving to the upside with consumer shares helping to offset the decline we are seeing in energy stocks. the aussie dollar lower for a seventh session while aussie bonds are climbing ahead of the rba november. the cba expects the aussie dollar could climb. on the u.s.check dollar, flipping the board. the dollar index has capped a three-day slump. exacerbated by the meeting between fed chair jay powell and u.s. president trump. the dollar shrank and negative rates were discussed. u.s. futures are moving to the downside after a quiet monday session. jumping into the terminal, while
u.s. stocks close on monday, they marked another record close with a moving average ending at further gains. as you can see on this chart. the rally could be overheating with the rsi for the s&p 500 climbing to the highest levels we have seen since the start of 2018. paul: thanks very much. south korean president moon townhall holding a meeting with citizens as he embarks on the second half of his term. countries grappling with a cyclical slowdown and a broader shift in economic and social life. dan moss joins us from singapore. urban-ruralhe divide getting in south korea? an: it is pretty apparent this is a divide which is stark. if we take a step back, we are
used to hearing about urban-rural divides in northern america and western europe. it has taken the blame, if that is the word, for the election of trump, for the brexit result. it is important we not get carried away with a western conceit it is alive and well in east asia, to clearly in two of the most advanced industrial economies in the region, japan and south korea. not only is south korean society aging, not only are they having fewer babies, but have the population lives in the seoul area. that is like half of the population of the united states living in new york. pretty amazing. paul: also pretty amazing is south korea's demographic challenges. about japan's declining population. korea makes things look somewhat worse, doesn't it? >> korea's population at the
moment is edging slightly higher . unlike japan's, which has already begun declining. that is going to start to accelerate in coming decades. it is around 50 million in change right now. i 2050, that will have fallen to the mid-40 millions. beyond that point, that is when the crunch early starts happening. they are on track to lose a little more than 600,000 people per year. at soulpography are university told me this is a bigger threat. predatewe cannot everything about right -- we cannot predate everything about north korea. this demographic crisis is entirely predictable. >> what can be done to combat this emptying of the korean countryside?
immigration? is that part of the solution? >> actually, it is. korea, like japan, is often caricatured as taking great pride in its ethnic homogeneity. int i found outside of seoul the countryside was, for example, any agricultural workers are for many agricultural workers are firm agriculturalny workers are from outside korea. -- frome from outside somewhere other than korea. the most common places where china, vietnam, and even india. it is important to not confuse what we call it with the phenomenological fact. if you spoke to many koreans about immigration, they might say, we are not ready for that.
foreign workers, if you talk about it in that sense, it is, hey, no problem. >> terrific reporting. terrific story. thank you so much. he is our bloomberg opinion columnist. now onto boston fed president, eric rosengren, warning his following -- warning his fellow fed policymakers of higher inflation. he told us the economy is performing as well as can be expected right now. >> we are pretty close to our inflation target. the core pce is just a little of of where we would like it to be. unemployment rate is still quite low. by historical standards, it is quite low. gdp is growing roughly at what we would expect. in terms of economic data, the outcome has been quite good. >> chairman powell said last week the economy is in a good place.
would you agree? >> i would. the composition has been a little different. we expected business faked investment and export to be stronger. we do not expect consumption to be so strong. with the imposition of the tariffs and the global slowdown, that resulted in exports and faked investment being weaker than we would have forecast. -- and fixed investment being weaker than we would have forecast. >> do you think it would have been that way without the rate cut? >> we would have been a little softer in some areas. residential investment looks like it is picking up. one of the challenges is thing about what the side effects are, very low interest rates. they are two interest -- there are two side effects i am wearing above. if we get an actual slowdown as opposed to a concerned slowdown, we do not have much room before short-term interest rates hit zero. the second concern is that the stock market has been doing
quite well. other financial markets have been quite be limp. the question is, is this the stage of the cycle where you want to have a little more push to financial markets? i am not so certain that businesses very should -- i am not so certain that is necessary. >> euro basically saying the fed is almost out of ammunition. -- you are basically saying the fed is almost out of ammunition. >> prior to the last three easing's, the fed fund was close to what i expect would be neutral. thee then, when we reduced funds rate by 75 basis points, given the level we were at, that was a substantial amount of easing. both monetary policy and fiscal policy are accommodative. i am not so sure we need quite so much accommodation. i am a little bit worried we have less room than we would have if we were to have a big negative shock.
it is not just the short end of the market. the long end has been fluctuating between one and a half and 2%. that was a let lower than what we were experiencing prior to the last recession purity even connotative easy -- the last recession. even quantitative easing can get down to lower than what we wrote expecting. fiscal policy in a low interest rate environment. it becomes a much more important tool. in the talk we gave, it highlighted this is a time where we should be thinking about buffers for capital ratios for banks and in general, fiscal policy. you would like to have a little bit more of a buffer for state and local government. so that they would not have to cut back if we were to have a recession. >> you take a look at what is happening in washing. there is no guarantee you're going to get any fiscal policy. what would happen then? >> we would have a longer
recession than what we would prefer. >> we have struggled to get to the fed's target. how do we get there? >> the labor market has been tight. i would be willing to wait a little longer for the tight labor markets to have an impact on prices. i do not think there is a big cost of being a little below 2%. i would not want to distort financial markets to get that outcome. i think we're looking at japan and europe where they have pushed the rates very low to me there inflation target. it has been negative in places like germany and japan. i am not sure that is a constructive policy. we should think about how much we want to distort financial markets to hit inflation targets. if we are close to 2%, i would like it to be above 2%. i would not distort financial markets to get that outcome. trump did meet with
jay powell today. they said they did talk about negative interest rates, which has been a big thing for the president. do you not like them in general or just for the united states? >> actually did not like them in general. particularly for the united states. i financial markets are a little bit different than european financial markets or japanese financial markets. i do not think it has the desired stimulus to get the long-term yield so negative. it starts to get distorted behavior that i do not think is so helpful. in the united states, we have some short-term money markets. >> that is boston fed president eric rosengren. there is plenty more to come on daybreak asia. this is bloomberg. ♪
morning. oul.tiful day in ser markets really struggling for direction at the market. we sell u.s. equities close modestly higher. this is daybreak asia. i am paul allen in sydney. kathleen: i'm kathleen hays in new york. ceos -- nine that is one of the key findings from a new survey by china focused audit firm markham bernstein and pinto lake. they did this in combination with seem university. sue bernstein is the comanaging partner, joining us from beijing. it is a great survey. is this the first time you have done it? it is very comprehensive. was our initial survey. andre incredibly thankful
grateful to the university for inviting us to participate. it has given us some very unique insight to the way chinese ceos think. where chinese leaders are focused on investing. we have a chart to put up to illustrate what you are saying. >> yes, the focus we found in -- isurvey is that the that it has really shifted. you can see the shifting to southeast asia, europe, africa. i would put the middle east in their too. what would be really interesting would be to see the competitiveness of chinese companies within these markets. is someone in africa going to be vying for alibaba or amazon? it is going to be interesting findings for us.
paul: the finding from your survey that chinese ceos are focusing more towards asia and not the ceos when -- and not the u.s. when it comes to ipo opportunities, is that because of geopolitics? >> chinese companies today have choices. 10 years ago, there was only the u.s. markets. the chinese companies have choices today. there is hong kong. there are many domestic markets. china has fielded an incredible entrepreneurial, group of ceos. they have these choices. there are differences in the market. each of these different markets offers different things. the driver that sends a lot of companies into the united states are probably three things. one, it is a competitive market. it has very deep diversified sources of capital.
do add onare able to rounds. you have seen billions of dollars rate from companies that it ipo's last year. third, given the results we saw from the m&a they are interested in doing, raising dollars is something that is good for them. it gives them international brand recognition. there are attractions. there are attractions to other markets too. alibaba was looking at hong kong. that also makes sense. theirmarket is there -- market is there. they paul: have choices now. thati found it interesting while most ceos aspire to ipo, in terms of growth financing, ipo's are way behind bank loans, private equity, bond issues. why is there such a gap between
exasperation and reality? >> that was something we looked at. i was a little surprised when i sell that. this survey is an incredibly extensive survey. it was taken in every province in china. it is almost 1300 companies. i could understand how a company might answer bank loans as their primary source of capital in that sense because it is cheap. that is the cheapest way to finance. equity is the most expensive. from an economic standpoint, it is probably a good answer. surveyhe results of the and given the fact they want to do this international m&a, we need capital to do that. it is consistent from what we are seeing in the ipo market. our firm is very busy. we are working on eight to 10 ipo's. it is consistent in that sense. kathleen: more broadly, the
china markets right now for the people you surveyed, the most popular venue to do an ipo followed by hong kong and the united states. probably not so surprising they are in domestic china. but hong kong, with all the unrest? did you do this survey recently? it seems kind of surprising. latee survey was done in 2019. some of what is going on today. i do not really think -- when we looked at the results from the survey, the geopolitical environment is really not affecting the thinking of the ceos as much as you would like to think. still one of the premier markets in the world. on,derstand what is going but it is still considered by many companies. kathleen: good news for hong
kong. there is nothing wrong with that. 71% of chinese ceos are very willing to consider mergers and acquisitions as part of their growth strategy, advanced technology, their most important factor. abouts more information what they said about that. >> i think that is very in line plan thatade in 2025 china has. they are very clear on the types of industries and markets they want to become world leaders in. the findings in this survey were consistent with that. they are looking to acquire technology, management skills. that was very consistent throughout the survey. that is something we are seeing in our practice. a lot of the clients we are working on are doing business in southeast asia, indonesia. really surprisingly all over.
it is not surprising. a lot of the ceos he spoke to, they prioritize growth over profitability. around her -- i wonder how sustainable that attitude is. the u.s. seems to be becoming a little more -- a little less tolerant of cash burning unicorns. is that not the case in china? >> i would agree with you. had this survey been taken after what we have seen with companies uber, werk and might've had different results. company, youpublic should be able to express crystal clearly how you make money. most of these unicorn companies are living based on growth and innovation. that is their business plans. having the investors understand exactly how they make money is something that is becoming more in tune.
you are seeing that now in the market. investors now becoming very keen to understand business plans. obviously, when you go public, as a private company, you really do not have to tell anybody anything. when you become public, it is like financially undressing. the investors get to see your business plan. they get to see how you make money. if they are not clear, then they are going to react. paul: alright. the comanaging partner. thank you for joining us. with the results of the china ceo survey. we are going to be live from beijing later this week at the new economy forum. there are plenty of big names. do not miss that lineup. this is bloomberg. ♪
paul: this is daybreak: asia. i'm paul allen in sydney. kathleen: i'm kathleen hays in new york. for a quick check of the business headlines. sony entertainment has taken ownership of game show network, dying at&t's minority stake for a $500 million. sony pictures already own 58% of the channel. sony says the game show network will continue to be carried on directv and managed by sony pictures television. paul: south korea's fair trade commission has begun antitrust penalty process against the country's biggest internet portal, neighbor. the commissioners filed a report into the alleging violations concerning allegations. neighbor placed its own platforms at the top of its search results. an official with neighbor says
it has yet to receive the ftc report. kathleen: sophie, what are you watching now? sophie: the yen is studying. a little change. we are seeing some gains in the consumer sector. treasury futures are little changed to the downside after treasuries rallied on monday. jgb futures managing slightly higher. the 10 year yield slips monday. the downside pressure on japanese yields is not increasing. stock trader, wanting reaction to it to be she chemical, offering to buy out its chemical unit instead of offloading it. at a 15%s were valued premium. there is to be a press briefing at 5:00 p.m. local time by mitsubishi. paul: still do, on the next hour
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protests have caused a double-digit drop in revenue. we hear exclusively from the chairman. kathleen: dialing up some big numbers. apple shipped 10 million handsets to china in recent weeks as the iphone 11 hits the spot. straight to the market action with sophie kamaruddin. sophie: looking west off in tokyo. the nikkei snapping a rise. the yen is staying firm. investors assess the situation in hong kong as well as trade uncertainty. jgb's opening slightly higher. let's switch out the board to check in on seoul. because---- it is snapping a three-day game. the index -- given the rally we have seen.
the korean won is under pressure. we are seeing it up .3%. traders will be looking to the renminbi. not a lot happening today, it would seem. take a look at body shares, which are fluctuating this running while bonds are getting around and the aussie dollar not import 68. downside risks of further easing. morgan stanley see is a benchmark broadly unchanged in the next 12 months at 6700 points with economic growth in australia likely to be subdued in 2020. paul: we will have those minutes from the reserve bank meeting in the little under 30 minutes time, but for now, let's get the first word news with ritika gupta. ritika: president trump says he discussed negative interest rates and the economy with jerome powell today. the president to mutated it was a very good and cordial meeting.
he has criticized powell for not cutting interest rates far enough. ousted bolivian leader evo stationsays the head of monica. by there elected leader senate last week. morales dismissed the rival move . the interim presidency has been recognized by the u.s. and brazil. he declared himself senate morales'sycotted by allies. the bank of japan's role as the prime mover seems to be coming to an end. the pendulum is swinging away from years of monetary policy towards fiscal measures amid global calls for government to do more to stimulate growth. it is a market turnaround from the doj, which has recently been confident of continuing with more deeply negative interest rates. indonesia's budget deficit has
ballooned to more than $20 billion and is set to widen further as the economy struggles with the global slowdown. with government on pace to miss revenue targets, the 2019 budget deficit is expected to reach as much as 2.2% of gdp from an initial target of 1.8%. climbedcit has already to about $20 billion as of the end of october. and the foul air choking new delhi is causing intangible damage to the indian economy. workd school days and lost hours are already affecting an economy struggling with a slowdown. the world bank says india's losses from pollution those more than four times between 1990 and 2013 to $560 billion. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am ready to go to. ritick took a group to --
ika. this is bloomberg. paul: the violence continues in hong kong as a two day university is raising fears of a crackdown on hundreds of protesters who remain. carrie lam has called on the protesters to heed the police. the u.s. saying it is her responsibility to restore calm. >> the united states is gravely concerned by the violence in hong kong including the standoff between protesters and police and hong kong polytechnic university and other campuses. we have repeatedly called for restrain from all parties in hong kong. violence by any side is unacceptable. the hong kong government bears primary responsibility for bringing called to hong kong -- calm to hong kong. let's go to our senior international editor, jodi schneider, in hong kong. what is the latest with that
siege at the polytechnic university? jodi: it looks like there's several hundred protesters. among them, presumably some students who are still on the campus who have been holed up for days in this standoff with the police. yesterday, it was quite a chaotic day at polytechnic, which is in kowloon. there were raging fires for part of the day, cars set on fire, arrests as police came onto the campus, sometimes storm to the campus. the government said it was not a police raid on the campus. lots of tear gas fired. late in the day, we saw several thousand protesters take to the streets and report of the students, saying save our children. carrie lam of course, as you noticed, has come out and said that this needs to end, that the protesters need to leave. the question is, how does it
end? what will the police try to do today perhaps to end this? there's a lot of concern about how that might go. carrie lam is scheduled to have her regular tuesday press conference this morning. course, those scenes at the hong kong polytech university, not the only evidence of disarray in hong kong. what else is going on and what are the broader implications going to be? jodi: yes, we have seen some other demonstrations in recent days around campuses, although polytechnic university has been where the main activity has taken place. indid see a lunchtime rally the central financial district yesterday as we saw last week. but it was pretty much contained. what we are seeing were more cancellations. schools are closed for a sixth day. it is sometimes more like a war zone when you look at polytechnic university,
financial hub. it is calm and the main area today, but there's a lot of concern about where this goes given that we are now in a second week of really chaotic scenes that have extended into the work week. for much of the five months of the protests, these were taking place on the weekends, but now, we are seeing it really affect the financial hub. disrupted andtion again, schools are closed for a sixth day. kathleen: when it comes to responses from leaders around the world, even though mike pompeo said, you know, violence is not appropriate on either side, this must be solved, carrie lam must have a role, even he seemed restrained in how much he came down for example on the side of the protesters. what are people saying? how is it being heard in hong kong? jodi: mike pompeo was calling investigationdent
into the violence and police activities. that is something the protesters and a lot of hong kong has been asking for really all summer since this started, so we will see where that goes. you are right. this.s. has spoken about there is legislation pending in the u.s. congress. but there's only so much that they can do at this point. we have also seen mitch mcconnell, the senate majority leader, republican, call on president trump to make some statement in support of the protesters. he has not set a whole lot about hong kong, so we will see. meanwhile, we did hear from xi jinping on the situation last week. he was speaking in brazil. he said that hong kong needs to end the violence. the violence needs to end in hong kong. senior international
editor jodi schneider, thank you so much for that date. globalup, allianz investors is avoiding steel and other base metals. managing director and senior portfolio manager -- is going to join us to explain why. paul: the snack chain that drew the ire of hong kong's protesters is facing a double-digit drop in revenue. our exclusive with the ceo is ahead. this is bloomberg. ♪
it was a cordial visit. have the markets reacted to this very much? reallyhe message is not one for today necessarily, but it helps to set a framework for what we can expect in the weeks and months ahead as the presidential 2020 campaign really gets fired up. i think it is reassuring for the president that jerome powell and the fed are not going to take the traditionally very neutral stance you would expect from a central bank during the presidential campaign. as part of the reason why we had those 75 basis points of cuts, the fed will go into a pause and it could be a very long pause as well. the fed will be happy to keep rates on hold and to keep out of the politics as much as they can. the implications for the u.s. dollar are at the margin relatively negative because the situation would be with the fed keeping out of it, keeping a
neutral stance, keeping the ammunition ready just in case there is a downturn in the u.s. economy, that gives a metrics as far asar -- skew traders are concerned. should there be any deterioration in the data, the fed will be ready to ease. they prefer to do nothing at all but they will lean slightly in favor of easing if they need to do anything and that is a dollar negative. on top of that, you are going to have the various presidential candidates coming in as well and it will be hard for them to make a case for the dollar to appreciate. from a traders point of view, it is skewed towards the dollar being a slight negative in terms of from the u.s. side. there is the rest of the world to worry about as well but from the u.s. angle, it is a slight dollar negative. paul: the chinese yuan is on that weaker. what is driving that?
mark: it is marginal. the yuan is weaker than it was last week, partly a reflection of the fact that the incremental news we are getting from the u.s.-china trade talks has stopped being so positive. last week, at one stage, it looked as though they were pretty close to announcing the timetable of a deal that has gone slightly cold. and you have this back and forth between the two sides probably over days and possibly even for the next couple of weeks. in reality, dollar yuan is probably fairly priced somewhere close to seven and traders are getting used to that. we will probably see it fluctuate back and forth through the seven line. that is probably what the pboc is pretty happy with. they are trying to focus their policy more on getting the chinese economy coming back to life. we saw a seven day repo cut yesterday, the first in several years. they have other tours which they are trying to leave. they would not mind a period where the currency is pretty
stable. they can focus on easing policy in various parts of the economy, getting banks to lend to smaller companies in china. that is a direction the pboc would like to go. they have been pretty content. dollar yuan fluctuates and arrange for now. they can get on with the big picture of trying to restore the chinese economy. paul: mark cranfield, thanks for joining us. our next guest says the trade war and dollar are the major headwinds for emerging markets. metals,uctor, precious and consumer stops in pm. joining us now with more on this from hong kong, and the allianz global investor and managing director and senior portfolio manager. of thendering if one reasons for a bit of optimism in e.m. is the fact that u.s. equities are very keenly priced at the moment. does that make e.m. more attractive? >> to some extent, yes.
if there is any positive news, it bodes well for e.m. and that is one of the reasons why we feel that any incremental news coming up on truth or a pause in the trade war or the tariffs is going to be very positive for the em stocks going forward. so 20/20 might be shaping up to be a good year for e.m. i know you are quite keen on semiconductors. and you might precious metal stocks as well. is that part of your liking of semiconductors or is that partly a haven play as well? >> the semiconductors are more than haven plays. it is a secular story. if you think of it whether we are talking about 5g or we are talking about any of the drones
and ai, artificial intelligence, and everything, they need computational power, and that is where the semiconductor play comes in. there are some which will do very well, irrespective of the direction in which the market goes up it at the end of the day, the economy is transforming computatione into a alliant economy. precious metals, it kind of falls in line with the previous speaker. if you think the dollar and the -- ife going to go anything, it is skewed towards the downside that they will cut something a couple of times in 2020. that kind of bodes very well for the precious metals, and that is where you are probably seeing a very good year after a hiatus. kathleen: seems to me you have
to be making a pretty strong bet on the u.s. economy slowing down, which may be that is because the trade war keeps going. or that would be the other factor that would cause the fed to keep cutting rates next year because right now, they made it pretty clear, they think the economy is in a good place. this pause looks pretty definite. look certain ways, if you through time, the fed's bias has been towards optimism, and that said, we are not seeing that the u.s. economy is going to slow down. the u.s. is going to need more stimulus. 2000 nine onwards, the whole global economy has been writing on stimulus, whether you talk about the ecb or the fed or something. what has fundamentally changed, which makes us think it will not be needed. and that is where we are saying
we don't need it to weaken. there is enough incentive for the fed to go ahead and cut rates somewhere in the middle of 2020. kathleen: what is the biggest risk to your outlook? it does not have to be a black swan, but what do you put on the map? if that starts happening, i see a very different outlook for 2020. frankly, the trade war going completely out of the hands, so what we are looking for is a pause and a truce. we get a nasty surprise when they go out and put in more tariffs on the pipeline. if it becomes a tit-for-tat, it will raise the geopolitical stress on the planet and that is where people will look to fight for safety.
not necessarily u.s. equities, but towards a dollar. that does not bode well for emerging markets. that is where we are concerned, looking with all eagerness to see where, if the pause in the trade war homes. allianz global investor and senior portfolio manager, thank you so much for joining us. we got some breaking news out of hong kong now. we have got some news about the hong kong police force. christine tong succeed stephen though as the new hong kong police chief. that was very widely expected. china has just approved him. he will be the seventh commissioner of police since hong kong was handled over by britain to china in 1997. he replaces -- he retired on monday after 35 years in the police force. stay with us. plenty more to calm.
paul: this is "daybreak asia." i am kathleen hays in new york. chinese consumers are rediscovering their appetite for iphones. apple shipped devices to the mainland. a 6% increase earlier. gurman, whoin mark covers apple for us. his iphone 11 that much better or has tim cook just come up with a better' better sales strategy? year, they were very muted upgrades. they did not have a lot going for him. the iphone, they have this new midnight green collar. about -- a bunch of bells and whistles. they did not have that last year
so the obvious take is of course this year is better and if it was not better, it would be a disaster. everything seems to be on track at least on this topic for apple. kathleen: do you think they have really done enough to woo chinese consumers away from huawei, away from xiaomi? mark: i don't think so. you have seen iphone sales basically cratering in china over the last couple of years or so. the software for the chinese consumer is not up to snuff it does not have integration. consumers in china operate differently than they do in the u.s.. the iphone is an american-made phone. they made a lot of efforts to combat that. features, other deeper integrations with these chinese social networks to offset that, but it is never really like the real thing. of an issue is apple's of
broader ecosystem in terms of the subscription services apple offers? mark: the services story in china is basically that there is not one. none of their new services they have announced over the last 18 months are available in china. you basically get apple music, a watered-down version of podcasts. you have the app store but you don't have apple arcade, which is supposed to be a big hit for the chinese consumers that are really into gaming. you don't have apple tv plastic compete with netflix and some of the video streaming services elsewhere in the world. you don't have the potential market penetration in china. they are losing out on the services battle. bloomberg technology's mark gurman. thanks so much for joining us joining us.et -- south korea's fair trade commission has become an anti--- begun an antitrust investigation
according to local media reports. the commission has filed a report into the alleged violation of fair competition rules concerning allegations that may have deliberately placed its platforms at the top of the search results. an official may have yet to receive the report. kathleen: sony pictures entertainment has taken complete ownership of u.s. cable channel game show network, buying at&t's minority stake for $500 million. sony pictures own 58% of the channel before the deal was struck. says the the -- sony network will be carried by direct tv and managed by sony pictures television. down its newosed york-based operations and is inviting customers to join lyft instead. itself as a friendly alternative to uber.
paul: all right, we are waiting on the minutes of the reserve bank of australia's november meeting. we are seeing a smoky sydney harbour. we have fires burning to the north of the city and in the state of queensland, the southern part of that state. it is pretty nasty out there. 6805 as we await these minutes, and perhaps while we are waiting, let's check in on how the asian markets are doing right now, get over to sophie kamaruddin in hong kong. sophie: we are seeing a pullback for asian stocks after they were
lowered by the kospi, off nearly 1%. hang seng futures hinting at losses. bonds are matching higher with the yield stabilizing around 1.8% after the overnight rally. they were slipping with aussie dollar on the rba meeting minutes. the yen is firmer. jgb yields -- the low. stocks in tokyo are halting a two day advance. seoul falling as much as 2.8%. the company reported sanctions for anticompetitive actresses so the stock merely wiping out all of monday's gains sparked by plans to merge the line. the company issued 2.8 billion shares as part of that deal. missionaries will be allotted to the new jv. more on the deal front.
mitsubishi chemicals fighting as much as 4.7% after a surprise move to buy a drug making unit. the $4.5 billion offer is priced at 2010 yen per share. so farremain untreated this morning with bids coming in at the upper limits on that offer, paul. paul: we have those reserve bank of australia minutes for you from the november meeting. .75%.sh trade at capacity is likely in the labor market for some years. we did see the unemployment rate for the month of october take up unexpectedly, the latest in a bunch of disappointing data surrounding inflation, softer retail numbers as well.
that is the latest easing cycle. the rba saying it was the most appropriate approach, to hold rates in november. and the cuts could have a different effect on confidence. we do have markets with the expectation that we will see further easing from the rba in the first half of 2020. there is one meeting left in september that we will not hear from the rba until february. the aussie dollar giving up some ground. declining one third of a cent against the greenback. let's check in on the first word news, get over to ritika. ritika: china's spokesman has missed the high court ruling that the government's controversial -- is unconstitutional. the court ruling challenges the authority of the chinese and hong kong government and warned
of its severe negative impact. as protest clashes continued monday night, mike pompeo called on hong kong's chief executive, carrie lam, to allow an independent probe of protest incidents. you can't labour party leader jeremy corbyn which businesses he plans to nationalize if his party winds power in next month's elections. the postal service and the electricity grid would all come under government control. in an interview with bloomberg, corbin explained the case that labor is making to british voters. >> what we are offering this country is to negotiate a trade deal with the european union, which gives a credible leave option. we have to bring people together. above all, it is about empowering young people for the future with better training, with a, and an equal status between apprenticeships and
academic education. ritika: chinese officials have confirmed a hunter who killed and ate a wild rabbit in the region has contracted bubonic plague. 20 people who came in contact with the 55-year-old show no signs of the disease. the diagnosis comes as two cases of pneumonic plague have been confirmed in beijing. the risk of spreading the disease is extremely low. is thek of japan's vol prime mover in efforts to revitalize the economy and seems to be coming to an end. the pendulum is swinging away from monetary policy towards fiscal measures among global calls from the government to do more to stimulate growth. it is a market turnaround from recently asch as september, had been confident with more deeply negative interest rates. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.
kathleen: a chinese tech giant has made -- tictoc is facing mounting scrutiny from u.s. lawmakers and regulators. the company has been finding ways to shake off its ties to china according to a report from the dow jones, citing unidentified sources. read what is tictoc considering doing to shed -- selina: it has been trying to rebrand itself away from china potentially by expanding operations in southeast asia, singapore, as well as reducing amount of chinese content on the app in the u.s. the company denied those accusations but it does, at a time when the company is becoming a liability for the success it has had in the united states.
it is a rare case of a china owned company being a consumer hit app in the u.s., downloaded more than 100 million times in the country it is known for her lighthearted lip-synching and dancing videos, but u.s. lawmakers are extremely concerned that this could pose a national security risk. they are wary that the chinese government could ask the company to turn over sensitive data. it is concerned it could be censoring content in the u.s., like how it sensors the app in china. u.s. officials are reviewing the acquisition of -- that committee has been stepping up its scrutiny of chinese companies buying u.s. firms. earlier this year, they did force a chinese company to give basis of datahe privacy concerns. paul: what has tictoc said in
response to these accusations from u.s. lawmakers? what is the context behind the company? selina: the company is trying to emphasize that tictoc is not run in china, that it is right in the u.s. by local teams and follows local regulations that are committed to following u.s. lawmakers. they have hired a u.s. audit firm to audit its data practices. it is also working with a team of outside experts to advise on its content moderation policies. what is really interesting here is that from the start, producty, it has been a of cross-border collaboration of ideas, talent, and the founder was raised in china, but worked in the u.s. for sap for a number of years. when he was creating it, he was spending most of his time in shanghai but traveling to the u.s. most of their engineers were based in shanghai. ironically, now that the app has become this hit success in the u.s., that he has always
envisioned, now the company has to battle these perceptions that it is beholden to the chinese government. paul: bloomberg's china correspondent selina wang in beijing. has kong snack chain -- seen revenue dropped by double digits. it's stores have come under attack in hong kong protests. the chairman took stock of the damage with yvonne man in hong kong. earnings will definitely have an impact. the antigovernment movement began, we have had to close our stores early on sundays. importantly, tourist arrivals have also come down. locals are spending less so there will be an impact. yvonne: you do not expect this to happen at all? it never crossed my mind.
i still do not understand why. i am innocent. you're talking about more than 70 of our stores vandalized, more than 100 times. this is a very, very big blow. yvonne: we live in these highly politically sensitive times where any type of store or company that has had any types of ties with mainland china has been targeted by these antigovernment protesters. in your case specifically, these protesters were targeting your stores because of your elected ties to mainland gangs. what can you tell us about these allegations? why do you think you continue to be a target amongst antigovernment protesters? kong is home to 1.2 million people. every six hong kong people, there is one person.
you cannot just tie these people and gangs together because of the clashes in north in august. i think that is very irresponsible. yvonne: you are heavily reliant on the hong kong market. at one point do you think you have to pull out of this market -- what point do you think you have to pull out of this market? >> we are on track to open more stores in macau. our target is to open 15 to 20 stores in the next two years. we are considering plans to expand in china as well. yvonne: do you still have confidence in the hong kong market? >> i do. wasme to hong kong when i 17. i have done business here for 30 years. ,ong kong is a democratic inclusive, and peaceful society, and i think this movement will pass. i believe most people in hong kong are rational.
do you have any strategy to deal with antigovernment protesters? any kind of plans to start any open dialogue with them? in a conversation? -- any conversation? >> we continue to stress that me or my company have not done anything to hurt hong kong people. there is a chinese saying -- the wise man knows he knows nothing. the fool thinks he knows all. history will reveal the truth. yvonne: do you see any kind of resolution to the situation right now? i have never seen any now feels unfamiliar to me. has not know why hong kong become like this, like a war zone. now that we have reached this
stage, i think the government should set up an independent inquiry to look into the whole issue. to give 7 million hong kong anrners -- hong kongers explanation. kathleen: bloomberg's yvonne man in hong kong. we will have more on the situation in hong kong later this week at bloomberg new economy forum in beijing. ronnie chan joins us along with a ceo. ♪
a institute report shows developing markets are leading the way. asia pacific advocacy -- joins us now. it is great to have you to talk about this. environmental, social, and government issues. broadly speaking, you said asia is lagging a bit. how is it growing? and what is the dynamic that is pushing it forward in the region? >> good day to you. that is a very good question. asia-pacific has made a lot of progress in terms of integrating factors into analysis. outsidehat the three -- of those three key centers, we are seeing a huge amount of reinvesting principles. you have got to realize pat neshek is very coastal. populations and assets are located -- realize that asia is very coastal. investors realize that if they do not consider the supply chain
, their markets, or their operations, they are doing themselves a disservice. kathleen: so can they afford to make these kind of changes? they cannot afford not to make them because they are so vulnerable, but particularly in developing countries, where they are seeming to be taking the lead, they feel they can. what is the difference for them in terms of what they are doing and what their returns are, etc.? >> a lot of key drivers when we speak to our members around the region, one of the most significant drivers is with management. if you look at the while the economic survey, they produce a risk assessment survey, and things such as environmental status asterisk -- economic risks as
the concerns people worry about. if they want to open themselves up to international capital, this has issues for international investors. they need to be able to show they have a strategy to cope with that. they need to be able to show that their strategy is aligned with the operations and be able to manage some of the sustainable hourly issue -- sustainability issues in effectively. paul: you mentioned in your report that for a lot of companies, esg has a box ticking exercise. esg appears on the balance sheet as a cost. it is not viewed as having a long-term benefit. for lots of issuers, they are doing things for a number of different reasons. the regulators demanded, because it is good for business, and
because it is the right thing to do. for a lot of the issuers doing it because the regulators tell them to, yes, it becomes a box ticking compliance exercise. i think each one of us in the industry has a role to play here. if we can communicate with the properly, doing this we can diversify the capital base. it is good for business and the communities you are operating in and it becomes a win-win-win. paul: you identified thailand as an emerging region or leader in esg disclosure. can you describe what is happening there? >> thailand is a very interesting case. in one of the measures we looked at, it was the only asian-pacific -- that made it to a top 10 the disclosure index. the reason why thailand has been
critical is that the stock exchange works very closely with the issuers, providing them with the guidance to upgrade. they were also able to motivate the issuers into thinking that sustainability reporting is a benefit. some of the largest companies have been admitted to the dow jones indices, a boon for the market. kathleen: how about china? what is the dynamic? what is driving it? what sort of obstacles do they have? for a lot of people, the disclosures they have to do are seen as burdensome. >> right. china is also a very interesting case. they announced a couple of years back that they will mandate environmental disclosures in 2020, so a lot of work is going
on on that front. perspective, it is a policy driven exercise. the central government is very keen to combat pollution. they are very keen to get the environment part right. issuers will have compliance requirements going forward in terms of environmental disclosures. obviously, the actual guidelines still remain to be seen, but we are hoping that what is happening in china will have a trickle-down effect for the rest of asia. kathleen: at the imf meetings just last month, i moderated a world bank bloomberg panel on green bonds. one of the people on the investment side said it is demand for investors that is starting to drive the issuers to do more of this because so many
people want to include that in their clients portfolios. are you seeing that in asia? >> absolutely. again, i break it down to three things. regulators want you to do something. your investors and clients want you to do something. it is much more powerful if it comes from investors. and asset owners. because, look, people in the asia-pacific follow them onto. if the clients want them to do it, they will do it. cfa institute asia pacific mary, thank you so much. don't forget our interactive tv function, tv . you can watch us live, catch up on past interviews, and dive into any of the securities or bloomberg functions we talk about. you can become part of the conversation by sending us instant messages during our show. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪
dubai air show. paul: the ceo told bloomberg the automaker needs to see whether the issue of tariffs is settled. he said china will be a good market. the muscle is being reinvented with a battery powered crossover. a flight he tweeted attendant called the police on him for not stowing his laptop. he says he did put the device away. they say they are investigating but found no evidence to substantiate his claims. time for a preview of what to watch and markets later this morning. none other than sophie. what are you watching? sophie: hang seng futures are under pressure after the rebound we saw monday which pushed the index above the moving average. looking ahead, bloomberg
intelligence note investors return to funding markets for signs of dislocations and what happens next with the economy in recession. looking at funding markets, the three-month yield differentials have pulled back in touch after widening the most since 1999 and then hinting at volatility in the front end which speaks to the growing what risk of capital flights and risks. traders still on edge. the jumps move to send in yield by lowering short-term borrowing costs is not a game changer even with the 10 year yields falling to the lowest level in a month, dipping below 319 basis points. they point out that any bond rally will be limited with the pboc is prudent approach to stimulus not seen it changing. paul. paul: thanks. let's have a look at how we are trading right now before we hand over to bloomberg markets: the china open. byaustralia, the asx off .5%.
it is flat. i beg your pardon. the nikkei off about .6%. really only new zealand that is stronger at the moment. markets really struggling for direction right now and we saw u.s. market seeking out very slender gains there. we have seen the aussie dollar give up about .3% against the 67.91ack now trading at after the reserve bank of australia kept everything on the table, kathleen. kathleen: we will be broadcasting the economy forum in beijing. among the big-name guests, -- and center for china and globalization founder and president, henry wang. that is it for "daybreak asia." this is bloomberg. ♪
>> 9:00 a.m. in beijing, welcome to china open. open ofing down to the markets. >> let's get to your top stories. the hong kong standoff enters a second day. police locked down the area. tension continues to grow. >> protests have cost a double-digit drop. we hear exclusively from the chairman. private hospi
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