>> the bank of japan governor tells bloomberg he has plenty of a munition left in his fight to revive the economy. >> shanghai announces new property measures in the latest attempt to rein in ballooning home prices. >> round two in the great debate. trump and clinton go head-to-head again after more headlines. >> and a costing directors dream. steven spielberg teaming up with alibaba to make movies for china. >> this is daybreak asia, coming to you live from bloomberg's

u.s. and asian headquarters. i'm ramy inocencio. haidi: i'm haidi lun it's tough to focus on anything else. we are just a couple hours away from the second presidential debate in what has been a remarkable weekend. ramy: that's right. in the past 48 hours, everyone from the political side of things to the financial side has been watching to see what will be happening at the debate tonight, as well as how it may have ramifications on the market. right, given that we have these republican defectors coming through, this added uncertainty and it comes to the election. take a look at how asian markets are reacting. trading is underway in new zealand, down by .3%. a little bit of movement and the kiwi dollar. the aussie markers are just opening up to trading, pre-much flat, indicating to the up. we'll take a look at what we are

seeing when it comes to japan, going ahead to the open in tokyo. this is how we ended things, with japanese markets closed today for the public holiday. but we do have the resumption of the chinese markets coming back online after the golden week holiday. that's a look at what we can expect. how was a looking on wall street, after we got that miss? ramy: that's right. in terms of nonfarm payrolls, it iss for september. we did see a little bit of a selling on friday, but we are seeing s&p futures come up by another .3% in early trading. meantime, haruhiko kuroda has given his clearest signal yet that the bank of japan may postpone the target date for achieving its 2% inflation rate, which means that they are the stimulus business for the long haul. christine hayes got an exclusive

interview. bloomberg television during the international monetary meeting over the weekend -- you will recall that when the bank of japan announced that it was going to start targeting the yield curve, not so much the monetary base, it raised a lot of questions. was that because they wanted to buy bonds? adviserse top criticized this policy, saying that not targeting the monetary base in a deflationary environment was the wrong thing to do. he came out in our exclusive interview over the weekend. he not only said he is not going to taper off on bond purchases he says it is necessary,, that the bank of japan can cut short-term and long-term rates. reduce tt think we can he purchase program soon. we have to maintain this low

to stimulate the economy and to achieve 2% inflation target. kumutha: inflation expectations giving rise -- inflation in japan year-over-year, if you look at the headline rate, they are both negative, both running below .5%. thatovernor kuroda said is in terms of targeting inflation, 2% or higher, they'll expand the monetary base until it gets to that level, and he said the boj's bond purchases to achieve that may keep rising, too. he also said that quantitative easing bond purchases aren't doing the job. they are depressing bond yields but that flattens the curve, and that pulls back on the transmission mechanism. he's concerned about his monetary policy boosting growth, inflation, and that is why he is

making this step and explaining what they are doing. haidi: we have another central bank worried about price is not moving, ecb. what does mario draghi have to say? kathleen: there has also been concerned that the ecb might decide not to extend its bond buying program pass in march of next year, but mario draghi said among other things that the ecb will probably start moving inflation higher, hit the inflation target in 2019, and he's ready to act if inflation disappoints. as other ecb official said last week, he seems to be saying that we aren't ready to pull back yet. this is very important. we also heard from stan fisher, vice chair of the federal reserve, who said there is no risk of the fed falling behind the curve on inflation, as it decided not to raise interest rates last week, but he didn't give us any sense of when they will move. haidi: all right. thank you so much.

you can hear more on that exclusive interview with the boj governor, haruhiko kuroda, later this hour at half past 7:00 hong kong time. sydney,re tuning in at that's half past 10:00. breaking news -- noble group is saying they will divest into america's energy solutions for $1.05 billion. they fell off the american energy unit and we are expecting that transaction to close in december. million,ases $275 coming after a torrid couple of years, where share prices are still down 50% over the past year amid accusations over its accounts. now.s what we are getting let's get the first word news from rosalind chin. the most iconic cattle company in australia. pay $277expecting to

million usd, although the deal is still required regulatory approval. is expected to cover 1.3% of their total land. china services expanded last month, although the price gauge came in slightly below estimates. indicated areading minor deceleration of expansion. the cognitive output index was 51.4 in september. a new ceo, head of a highly anticipated ipo. he's expected to succeed but will remain executive chair. plan to lift in hong kong and what could be one of the city's biggest deals since 2010. the operator has 450 million

active users and is worth $75 billion. global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. bloomberg this is bloomberg. haidi: china is changing the rules of the game in two fast-growing sectors of the economy. they are preparing to ramp up restrictions on ridesharing and the property market. tom mackenzie is looking into this and is with us in beijing. it starts with the ridesharing part -- what codes are we talking about? tom: these are draft rules that have been looked at by the cities of beijing, shanghai, and send jen. what they are looking at at is reducing the pool of drivers, which would have the biggest reaction. -- what theions authorities want to do is

restrict permits for people allowed to drive these ridesharing cars to people who are residents in the city's, and in shanghai, just 3% of its drivers have residency permits. it would be a big hit to did. didi. ramy: chinese officials have also pulled out the rulebook when it comes to china's property marke. what are we talking about? tom: that's right. shanghai adding, increasing land supply. it says it will also crackdown on price rises of new home presales, and it wants to crack down on what it describes as rumor making, rumormongering, when it comes to the property sector. we have seen prices in shanghai up 5.1% in september adjusted from august. that follows from a dozen last week raising curves, increasing

restrictions on the property price sector. we have had increasing concerns from the authorities and we have a chart as well from the price, yuan per square meter for property prices, a big tick upward since mid-2014. th authoritiese are very concerned about a bubble, as are analysts. layers just another of restrictions in price. ramy: tom mackenzie thanks very much,. here in u.s. policy, round two for hillary clinton and donald trump. clinton will be looking to extend her pull lead in today's second presidential debate while mr. trump will hope to repair some of the damage done after some embarrassing recordings. our washington bureau chief megan murphy joins us from st. louis, where the debate is being held. huge, trump is facing a backlash even from republican leaders. megan: the seismic shock wave

sent through the race by the release of this tape on friday afternoon, a recording of him making these sexually aggressive, folder comments into ahas made him position where many republicans have withdrawn support. they no longer believe he can win this race. debate, where what we do know is that the first part of this debate, they will be faced with this issue, being asked to address it. we have been told she is not going to shy away from addressing the topic in a way no one else has. how he responds, whether he shows contrition, whether he goes full force against her, that's going to make this. what we see behind me is an extraordinary spectacle like we've never seen. ramy: there is huge opportunity, but there is also huge risk in how mrs. clinton addresses it. any indication where she might

go? megan: what i think she's going to try to do is she has always been very focused about women. we shouldn't forget that she would be the first woman to break which he has called the highest glass ceiling. her husband certainly believe that is personal and so many in her campaign, so many of barack obama's people, believe this is personal, an issue that cannot go on. how do they raise their daughter's, their sons to deal with this language? i expect her to go hard, to go personal in terms of what it means for women and the choice that is in front of them and who is better not just for the future of the election but going forward. what are we expecting from trump? megan: i wish i knew. i think everyone wishes they knew. he's not get out the debate site. there have been rumors about a

split decision on whether he should go on the attack. hillary clinton and bill clinton has had a rocky marriage and that is well documented, and they are split about whether that will be productive. what he should do is say, this is not the man i am, this is not the candidate i'm expressing, that was i 2005. in 2016 this is my vision. yes, this was a transgression, but look at my record. this is what i want to take forward, not something i said 10 years ago. whether or not that will work remains to be seen. haidi: thanks so much for that. megan murphy. we will get more from her in our special coverage of the second presidential debate, starting at 8:30 a.m. hong kong time here in new york. ahead, steven spielberg joining forces with alibaba to write a new script for chinese cinema. details, later. ramy: next, find out what the

bank of singapore says china's policy stance is stable but not sustainable. this is bloomberg. ♪

ramy: we are counting down to asia's first major market open this morning. trading in sydney is already underway, up by nearly .5%. you are watching "daybreak: asia." haidi: a quick check of the latest business flash headlines. the new government of the philippines is targeting chinese investment for a new infrastructure program, the latest sign of easing bilateral ties between the nations. the finance secretary says that china will be "a big source of funding" and that he is going to initiate talks." overng has been at heads the south china sea. ramy: the poc says the threat

from china's loans have been manageable, but he says fast credit growth has helped rein in the dangers and probably economy. he spoke while he was at the imf and world bank annual meetings in washington, d.c. previously posted his comments on their website. haidi: the australian treasurer is playing down worries of a housing bubble, saying the property market is prone to exaggeration. speaking in washington, he said there is no evidence that the market is overvalued outside some pockets of the country, and doesn't see much else for further rate cuts. house prices have risen 14% so far this year after taking apposite the end of 2015. let's look at the key events likely to drive the week with richard jeremy, chief economist at the bank of singapore. richard, a lot of stuff to talk to about. but i have to go first to donald trump. we have and see what's been happening over the past two days here in the united states. how will that impact u.s.

markets? >> that's a tough one. outside the u.s., it is hard to see this is new. the guy is known to be racist, sexist, you name it, but he is still very popular. i guess we are still struggling to understand what drives american voters. any chance it increases hillary's odds of winning is probably good for the markets. ramy: i want to direct our viewers into the bloomberg elect, and head on to the le go. in about an hour you can see all you need in terms of headlines, in terms of polls. right now the politics poor is 47.5% for hillary. back to, i want to get u.s. election, and potentially what it might portend for how it might and

be similar to a post-brexit vote shock. do you see any similarities coming out? >> not really. i think the u.s. election is far more significant to the asian region. brexit was very much a u.k. problem, possibly european. haveump were to win, he'd a lot of 40 over trade relations, foreign relations, threatening a big tariff on chinese exports. that would be catastrophically bad for the asian region. i think asia has a lot riding on this election. if hillary wins, not much changes. but if trouble wins, it's a big problem. ramy: let's get technical. we have the u.s. september jobs report. did came in a little bit less than expected, 156 versus an estimated 172. is this a speed bump you think the u.s. can get over? >> no, i think the number was close enough that you can dismiss it as being a rounding error. releases, from that

point of view, it still looks to me like the fed is on track to raise rates in december. the economy does seem to be performing pretty well. i think the fed will just give another nudge oin the december meeting. haidi: i know we spoke earlier, looking at the u.s. election issue from asia, puzzled and mildly entertained -- but how concerned should we be on the impact of a potential trump presidency on asian markets, currencies, and also from the tree perspective? -- the trait perspective? >> one is the security dimension. and then maybe more directly, they are talking about big tariffs on china. and that's not just exports in china, that's everybody in the

region exporting to china. it would affect the whole region. from an asian market point of view, it would be very damaging if trump were to win. haidi: i want to get more thought to have on china. you're talking about this stable but not sustainable -- we have seen these gains when it comes to the recovery in the economy, but you are expecting new loans coming through this week. you are still expecting that to continue to grow, and structural changes are still lacking. where does it go from there? we have heard about the potential for pbo see tightening as soon as the end of the year. it'sthink the problem is stable but not sustainable. they have bought themselves stability over the past few months, but one cost of that is being another real estate bubble

in some of the big cities, excessive credit growth. the credit is still growing twice as fast as the economy. that can't go on forever. presumably they will tighten controls on housing, squeeze credit, and then growth will slow down, and then they have to find another way of supporting the economy. that's aiming for a growth rate which is beyond the capabilities of the economy, and they can only achieve that either by running up bigger deficits or by excessive credit growth. in the end, you have to accept some degree of a slowdown in the future. haidi: you talk about japan as well, still throwing money at the problem, kuroda saying we could do more should they do more? it is not working so far. whyt's not obvious to me they should do more. it seems to be a full capacity. the markets are very tight. inflation hasn't come through, but it's not clear how big the cost of that is, and that's an

historic problem of the past 20 years. boj has historically welcome to deflation and it takes a while to change mindset. if you let the economy run hot, in the end inflation will rise. it's not obvious what benefits there are to japan of cutting rates. i think the payback is small. haidi: all right. always a pleasure. chief economist at the bank of singapore. up next, the gain in u.s. jobs late last week, a this on expectations. we will get a better look at the data for that december hike. this is bloomberg. ♪

ramy: you are watching "daybreak: asia." i'm ramy inocencio. haidi: i'm haidi lun. deutsche bank remains in the spotlight with little progress on negotiations with the justice department, reports indicating that the ceo failed to win a

reduced fine during talks in washington. su, what's the latest? to john cryan, the ceo, came ,ashington, d.c. and was unabl according to people who are not officially making a public, to reach a negotiation to bring it lower. the initial $14 billion aw, bothnt the bank s the lender and the department of justice are trying to get this year's long mortgage bond probe, and they haven't broken off the talks. there's also more that deutsche bank may face additional penalties for other unresolved probes. if you look at the stock, you can see it is well off the low, where the news hit. it's down 43% year to date and the ceo says this is a peak restructuring year. ramy: right.

let's look at u.s. september jobs. that did miss expectations by about 20,000 or so. what are the details? su: it came in light. the consensus was that it is still strong enough to keep a december rate hike in play, and that was enough to have the market selloff a bit. ain,olls showed it with a g so yes, a little bit under, but the view is that it is solid. unemployment ticked up a little bit, but analysts say the december rate hike is still in play. ramy: i know fed fund futures are up 64%, 64.3 for december. su keenan, thanks very much. up next, with inflation floundering far below the doj corona -- boj target, indicates he may need more time to hit that 2% goal. our exclusive interview is

coming up next. this is bloomberg. ♪

haidi: it is 7:30 monday here in hong kong here and we are about 30 minutes away from the asian markets opening. it is a public holiday for hong kong markets. for the day.sed ramy: it is 7:30 p.m. here in new york. -- i am ramy inocencio in new york. haidi: i'm haidi lun in hong kong. you're watching "daybreak: asia." oj governor says the central bank has no plans to give up on its policy to increase monetary stimulus.

, theyexclusive interview said there was no plan to wind down and until 2% inflation is achieved. the deal with -- the deal was with 800 million in cash -- $800 million in cash. there are monthly losses in liquidity fees. -- ard ullman says china is warning of lower availability and higher prices. beijing, shanghai, and ginger and -- says that is less than 3% of its shanghai drivers.

it could rule out more than 80% of its cars. this is bloomberg. fori: a big week ahead markets. we're coming up on a very news heavy weekend during a very -- a fairly volatile session on wall street. new zealand is the one to watch. it is actually very close to losing. currency -- commodities are flat at this moment. as well as several key markets in the region.

that being said, have a look at futures. on the nikkei 225, hire a little bit. -- higher a little bit. about the next in his own a moment. have a look at cable. 12438. goldman ceases falling further. keep your eye on that. dollar-yen at 103. -- one dollar and three cents -- $1.03. 1897 --ow trading at

18.97. barometer for what markets. we look forward to that when the debate actually starts. has given itspan clearest indication yet it could push back its forecast to date or achieving to presented nation targets to 2018. speaking exclusively to our correspondent in washington dc, governor kuroda said they may need more time. >> i think the japanese economy is recovering, but moderately. as been helpful in preventing the impact on the economy.

recovering,has been but still we have not yet achieved the goal. we have to continue our monetary target.ntil the 2% >> with this new package, do you think this is the right one? >> i think so. , wee and a half years ago introduced qualitative easing. there is a negative interest rate. the mostame up with .tringent framework

the new framework has two components. ,ne is inflation overshooting which is to say we will continue accommodating monetary policy to allow the inflation rate to go , and then toget gradually shift back towards 2%. is control. controlling the shortest interest rate, the negative interest rate, but also we continue to control or try to the rate at around 0%.

taking these two interest rates, we can manage appropriate control. work, exactly does it because you have been undershooting? is this psychologically, and works on future expectations? >> in japan, inflation expectations have been largely productive, somewhat backward looking. when the inflation rate declines, the expectations also decline. .e have to make this change >> do you think it will work? >> yes.

you see, this is a very new move by the bank of japan. makerrected ourselves to our extremely accommodative to allow actual inflation rate to go beyond 2% around 2%.ere this is supported by continuous base,ion of our monetary our continued expansion of purchase. >> i have also read papers saying this. do you put your credibility on the line? if you don't reach the 2% -- with --

>> this is a very strong ouritment supported by expansionto continue of monetary base, expansion of purchase. it is not just to say that we will allow inflation weights to go -- inflation rates to go beyond 2%. it is supported by our intention , strong intention to continue monetary base expansion and asset purchase expansion. >> governor, when do you think you will reach the 2% target? >> at this stage, the policy is that 2%rs focus inflation rate will be achieved sometime in the next fiscal year , meaning from april next year

through march year after next. that is the latest focus. we will revise focus of recorder. -- focus every quarter. the point of that is a very strong commitment. inflation overshooting commitment coupled with control her and i think -- control. >> governor, you believe you have to push back at the end of the fiscal year? on one hand, we expect year,ic growth next

partly because of the stimulus package the government decided, and the full impact of the fiscal stimulus will be felt here. year, we will save around 1.5%. >> and inflation will grow with it? >> yes. in that sense, the economy is likely to accelerate growth. how about the inflation? because of sharper declines in those prices, and because of some of weakened inflation expectations, current state of negative.is in effect it may take slightly more months to reach the 2% inflation rate.

to carefully study all relevant statistics before we review the focus. we may change, we may not change. at this stage, one thing is quite sure -- growth is likely to accelerate next year. >> you seem to suggest that inflation may take a little longer. >> maybe. already, the latest focus made a few months ago indicated that the inflation 2% in the nexth fiscal year, but there is great

uncertainty. stage, one thing is quite clear. that is economic growth is likely next fiscal year. on the other hand, inflation rates, we expect them to .radually accelerate towards 2% when 2% inflation rate is nextved, it is up to the focus. haidi: that was the bank of japan governor corona -- kuroda talking to our correspondent in washington. speaking on twitter from theirle, saying that halting sales and exchanges of , saying they can

still bring in their recalled accessories for refund. this is after the second batch 7 was a two-goal fires after that initial recall. this also comes on the back of at&t saying that they had discontinued all sales and exchanges of the recalled note7 as well. samsung responding, saying they respect the at&t decision and will be continuing their investigation. but it is completed, samsung will be sharing those findings and will be taking steps if the company determines that safety issues exist. we will take a look at how that stock trades when korea opens in just about 15 minutes. we do have samsung recovering from that september 12 low of about 15%. still ahead, we're just over an hour away from the second

presidential debate. donald trump campaign in crisis. what to expect from both candidates. this is bloomberg. ♪

haidi: you are watching "daybreak: asia." i am haidi lun in hong kong. ramy: i'm remy and this until -- ramy inocencio in new york. the ok economy as investors worried the government's approach to brexit may forgo access to the single market. this is the biggest tumble since the votes to leave the eo and june -- the eu in june. continued losses may undermine that role. slide says it could include a sale of bankruptcy.

-- takata is facing the cost of recalling millions that are tiedags to at least 16 deaths and numerous injuries. macau says chinese visitor numbers during golden week were up seven percent from 2015. the governor's tourist office -- that they have been trying to turn around a two-year slump by appealing to tourists rather than highrollers. haidi: now to the coverage of the second presidential debate. let's take a look ahead. tom, an extraordinary weekend. whatever you expecting -- what are you expecting? or are you going expectations out the window -- throwing expectations of the window? indicates evidence

the republican party campaign is on the verge of imploding. that is simply due to donald trump. there have been gaps among many republicans throughout the last 12 or 15 months since donald trump announced his presidential bid. every time the critics give trump because of death, there is mouth-to-mouth resuscitation area -- resuscitation. at this stage, this seems to be the exception, and republicans are deserting him and calling on him to resign, something he says he will not do. the offices on him -- the onus is on him to pull a rabbit out of his hat. he had little experience dealing with these debates. one can only think his campaign is in the process of imploding. a pointou say this is of change. does it actually is change his support base? loot,y americans are nfl calling for change in washington. we are saying the bar lowered

time and time again. does this change anything question -- anything? >> most of his core supporters will stick through this ordeal through thick and thin. you may recall at the beginning of the year, trump even some dust even boasted that if he shot someone, his core supporters would still support him. for better or for worse, trump has been tapping into real grievances. these people have seen their raises -- there wages stagnate. they are sick and tired of seeing their nation lose battles in the middle east. they are sick of political correctness. those folks will stick with him. election,residential you also need to expand your base. you need to win over independent, you need to win over moderates, you need to win over suburban women. he was always struggling with those folks. the latest scandal made to his

going to struggle even more to win them over. ramy: analysts say that for hillary clinton, one of her biggest weak spots is the tvp. -- the tpp. some say she might slip back to support that if she is elected. do you think that will happen? what has been overshadowed in the last 48 hours is the weaker that -- is the wikileaks show the nature of her discussions with banking executives on wall street and elsewhere where she says that wall street insiders are needed to fix wall street, that she supports open borders and open markets. what she's is in public does not necessarily mean what she believes privately. this is mono from heaven for a lot of the business executives she talks to. for many of the bernie sanders support is representing the left-wing of the democratic party, this is a real problem for hillary clinton. this is part of why she flipped on the tpp.

the center of gravity in america has become more protectionist. both trump and sanders in their own way stood against these trade deals. hillary nationally supports them like many business minded republicans. it is suicide in a campaign these days to support trade deals. she is in a real bind on these issues. power, she will alienate more than half of her the tpp.she supports ramy: i want to jump into the bloomberg, in terms of polling numbers. the spread is 4.6%. it is the highest in september 1 or so. ago, april 12, you right here on bloomberg tv saying that hillary clinton is "odds on favorite to win the u.s. presidency."

do you agree with yourself from a year ago? >> thanks for reminding me of one of the few connections i like it right -- view predictions i might get right. thatld never have thought donald trump would be the republican nominee, and that he has tapped into this widespread sense of anxiety. the reality is trump is not ready for prime time. he is divisive and erratic. he lacks a core governing philosophy. now the republican party is about to pay that price. ramy: we have 35 minutes left until the next presidential debate. next up, bringing hollywood to beijing. we look at the time between jack ma and steven spielberg means for the movie industry. this is bloomberg. ♪

ramy: you're watching "daybreak:

asia." i am ramy inocencio in new york. haidi: i'm haidi lun in hong kong. asia's richest man is to costar with hollywood's highest grossing movie director. this is the new dream team. >> jack ma goes big. specific abouty which films he is tied up with. i think he did the latest mission impossible films. he has been pretty selective. obviously he was to go at the biggest name in hollywood, and that is steven spielberg. alibaba pictures is buying a part in amblin. alibaba pictures, they got into the movie business because they want to also have the distribution across all the various alibaba platforms. that is what they did with the mission impossible film.

he said among chinese consumers, there is an increasing demand for premium global content. this collaboration could serve as a cultural bridge. he has used that term before. and have a positive impact on the next generation of chinese consumers. ramy: what about wanda pushing into hollywood, too? >> he has been far more aggressive. they bought legendary entertainment, they bought amc entertainment, the big cinema provider. they are also looking to buy car mike's and was -- carmike cinemas. they are also looking at dick clark productions. wanda has been very aggressive. again, there are concerns as well with chinese investment, because there are censorship issues there. you have potential greater review of chinese investment by u.s. lawmakers. there are challenges.

ramy: plenty more still to come with asia's first major market open now just minutes away. haidi: we have a little bit.

haidi: it is around 2:00 -- it is round two in the great debate. the bank of japan governor tells bloomberg he has plenty of ammunition in the fight to revive the economy. haidi: samsung is hit by a series of blows. at&t and t-mobile stop note 7 sales. than $1ble raises more

million by selling a u.s. energy unit. haidi: you are watching the second hour of "daybreak: asia." i'm haidi lun in hong kong. 8:00 and it is just past p.m. in new york. i'm ramy inocencio. we are just about 29 minutes left until the second presidential debate. we are all about finance and economy, but a lot of people want to see what donald trump has to say in the light of the past 24 hours. haidi: extraordinary weekend of revelations and defections growing in number from the republicans, casting uncertainty over this election outcome. we have some markets in the asia-pacific closed, including japan, but for everyone else, everything else, let's get over to david. david: we are looking at a lull starting 30 minutes from now. taiwan opening up, that is going to be shut, as with hong kong.

have a look at what is happening across a few markets that are open. japan should be open. it is also shut for a holiday. we're looking at a little bit of upside when it comes to the aussie session. marketland, this is a that is really taking it on the chin. it is down for a six straight day. it is still the best-performing market, though it just could lose that title at some point, depending on what the ftse 100 does. at the moment, i think it is about 0.3% behind new zealand year to date. have a look at south korea, down 0.25%. very interesting session. samsung going to be very much in the mix. a little bit of downside. a lot of people are watching shanghai. it has been shut for a week. it reopens today. asia was up 0.6%.

this market tends to dance to its own music anyway. a lot in the mix. samsung is in the news again this morning. is the stock doing anything early on? david: we did see some downside. let's have a look at where we are. last i checked, we were down 3%. that is a year-to-date look. it closed at a record on friday. let me flip my board and have a look at the early quote here. there we go, 3.5%. goes, chancesck are that is where the kospi goes. at&t and t-mobile as well halting and stopping all exchanges of the note 7. if you do have one and need to replace it, t-mobile, you can bring it to the store. they will either give you a wreath and for -- a refund and

make you choose another handset. ramy: let's head over to u.s. politics. hillary clinton will be looking to extend her lead in the second presidential debate, while donald trump will help to repair some of the damage inflicted by the release of those recordings in which he demonstrates -- he denigrates women. -- round twol get will get underway within the hour. donald trump is facing a huge backlash even from republican leaders. what is the mood there? >> certainly, even building up to today, and in the last hour, there's a tremendous amount of anticipation. how quickly will he get the question about the allegations that have blown up over the last couple days? how will hillary clinton respond? will she go on the attack? will he become defensive or apologetic? a whole lot of unknowns. this is make or break for donald

trump. he is at risk of losing even more republicans in terms of endorsements. some close to him calling for him to get out. he has stood firmly by, but all i on this debate to see whether he can turn the dynamic around. haidi: trump has been holding some meetings ahead of this crucial debate. who has even talking to? >> that's right. there is a bombshell development. reporters traveling with donald trump brought into a room at a hotel to witness, they didn't know what it was, four women and donald trump sitting at a dais, and there are some names you may recognize. oaddrick,es, juanita br women who have accused former president bill clinton or hillary clinton of improprieties. in one case, a woman accusing

former president bill clinton of rape. woman who case, a said that she had been raped and hillary clinton had defended the man she had accused. a bombshell development. donald trump meeting with these women. a quick almost press conference or dog and pony show where the women made allegations about the clintons. the timing of this obviously meant to distract from the trouble donald trump has faced and turned the dynamic around. it is a real showman's development but also a political bombshell. expect clintone to address this? >> we have not heard any response from her campaign. outreach toly began secretary clinton's campaign and former president bill clinton's staff. we expect that much like with

the developments of the last two days or so, that secretary clinton will wait until the debate begins to show american voters and the world just how she intends to respond. haidi: margaret, thank you so much for that. we did actually get a response from the clinton camp. the clinton campaign saying that trump's latest move is his latest act of desperation, that she is prepared to handle anything that comes from trump. that is a response to the latest move from trump to hold that press conference with a number of women who have accused bill clinton of sexual assault in the past. in the meantime, let's get the first word news with rosalind chin. people are still without power in the southern united states after hurricane matthew. almost 400,000 homes and

businesses remain in the dark in florida with more than one million affected in georgia and the carolinas. dozens of people are reported to have been killed by matthew. didi warning of lower availability and higher prices under proposed new rules. beijing, shanghai, and shenzhen want to restrict them to local residency permits. didi says that is less than 3% of its drivers. it also says tighter vehicle standards could rule out more than 80% of its cars. singapore listed commodity trader noble is raising $1 billion by selling a u.s. energy unit. the deal gives $800 million in cash. hit by a rout in commodities. richard said he aims to raise $2 billion by cutting jobs and selling assets. asia's richest woman is linking

up with a chinese company to form the most iconic capital company in asia. they are paying 277 million u.s. dollars. the deal still requires regulatory approval. 1.3% of thecover total land area. global news 24 hours a day powered by more than 2600 journalists and analysts in 120 countries. ramy: thank you. still ahead, we are counting down to the second presidential debate after a disastrous weekend for the trump campaign. we will discuss what to expect from that showdown. japan's bondw can yields go? francine lacqua asked the bank of japan governor exactly that. her exclusive interview is next. this is bloomberg. ♪

ramy: you are watching "daybreak: asia." haidi: haruhiko kuroda has given the clearest signal yet that the bank of japan may postpone the target date for achieving its 2% inflation target. in an exclusive bloomberg interview, he said the policy will remain accommodative for as long as it takes to achieve that target. gov. kuroda: central bankers short-term interest rate can be completely controlled while long-term interest rates are not. but in reality, after the lehman crisis, the global financial crisis, all major central banks have been directly intervening tothe long-term asset market influence long-term interest rates. they have been successful in

reducing long-term interest rates. qefrom our experience of with negative interest rate, we are quite sure that this unabletion could make us to control the yield curve. just short-term interest rate, but 10-year -- i don't say that we can completely control 10-year interest rate, but from our experience, we can basically influence and manage long-term interest rate around 0%. francine: what is around 0%? is it a range? gov. kuroda: i think basically we have introduced some other measures.

if necessary, we can make a new measure to cap the long-term interest rate to go beyond our target. we are quite sure -- francine: you can do it. gov. kuroda: basically do it, measures which beyondvoid interest rate the area we are targeting. francine: governor, when the boj introduced the negative, or at least the overnight rate at 0% in 1999, no one thought we would still be here in 2016. how long do you think you will cap 10 year yields? gov. kuroda: it depends on the and -- development.

for the time being, we will maintain this yield curve, but if we are successfully achieving 2% inflation target naturally long-term interest rate will gradually go up. and we would allow that. but for the time being, we keep long-term interest rates around zero, and if necessary, even we rate ofduce target 10-year jgb even lower than 0%. francine: what level? gov. kuroda: it depends on the economic and inflation outlook. at this stage, we will keep make awo points to smooth yield curve.

and if necessary, we can reduce both short end and long end of interest rate. but as i said, if we are accessible -- successful in achieving 2% interest rate, then gradually jgb rate would go up. francine: this is what the markets are trying to understand. they are concerned that you may have to sell jgb's to stay at around zero, and if you sell jgb's, that may be perceived as tapering and it may send yen higher. gov. kuroda: we made it quite trillion would basically continue. with this large-scale jgb purchase coupled with negative interest rates, we have been able to achieve a smooth yield curve. reduce jgbnk we can

purchase program soon. we have to maintain this low level of interest rate to stimulate the economy. the 2% inflation target. francine: are you telling me that even if the 10-year yield goes negative territory, you will not sell jgb's? gov. kuroda: what we have made change our monetary policy from monetary-based control, to yield curve control. the most important is yield curve, short end and long end of interest rate, and in order to increasehat, we could jgb purchase or decrease jgb

purchase. but this is a technical matter, not the policy. maintaintention is to very accommodative monetary policy, maintain low interest rate from short to long. francine: but the markets have a perception. i understand it technically, but what if the markets perceive it as tapering and the yen goes higher? gov. kuroda: i don't think the market perceives the kind of tapering. tapering, as you know, is a way to exit from accommodative expansion and monetary policy by step-by-step,g, the amount of asset purchase. don't -- iid, we

-- we will continue, or even strengthen our monetary easing in the coming months and years to achieve 2% inflation. for the time being, as i said, ¥80 trillion assets purchased would continue. it could of course go beyond ¥80 trillion, or it could go less than ¥80 trillion, but the most important is to achieve the yield curve control. that is the most important. achieving the appropriate yield curve, we can maintain and if necessary strengthen stimulative impacts of monetary policy.

by changing to yield curve control, we have gained flexibility, sustainability, to address the real economy, and also we can address financial market situation. ramy: boj governor haruhiko kuroda speaking exclusively to francine lacqua in washington. still ahead, what does the market think of kuroda's assertion of even lower rates? tribeca partner sean fenton joins us next. this is bloomberg. ♪

haidi: you're watching "daybreak: asia." i'm haidi lun in hong kong. ramy: and i'm ramy inocencio in new york. nbc is said to have suspended billy bush pending a review that is now crossing the bloomberg terminal. according to a memo obtained by

bloomberg, this is related to the fallout that has been happening with donald trump over the past 48 hours with that hot mic event that was announced and broken friday night. billy bush is a host on the popular nbc show "the today show." he's also known to the first cousins with former florida governor jeb bush, who dropped out of the candidacy as he sought the gop nomination to run as president. we will get more on that as it develops. haidi: let's get more on what we can expect out of the markets today with sean fenton, portfolio manager at tribeca. he joins us from sydney. great to have you. about 40 minutes away from that second presidential election debate in the u.s., extraordinary couple of days. what are you watching from asia? a guest said it has been

puzzling and entertaining. the risks are pretty real for the markets now. >> certainly out of the u.s. election, i guess trump is a far bigger unknown in terms of more extreme policy positions, big tax cuts, and spending in some ways, but a lot of uncertainty there. certainly seems to be unpopular in business circles. clinton, ironically, democrats haven't really been popular with markets, but markets seem to be looking for that certainty in policy and seem more comfortable with the outcome in that direction. haidi: let's get back to the data. we had a miss on non-farms on friday. we have fed funds futures taking up a little bit. the data coming out of the

u.s. continues to be pretty inchy, with some big swings ism. from my point of view, it is just statistical noise. we're close to full employment and that seems to be leveling out around that 5% rate. we are seeing the participation rate tick higher. what that means is growth going forward is starting to pull people back into the workforce. wages growth, i think that continues on. collapse oil price working its way through the system now. opec exerting some more control there. even the u.s. dollar strength. that is going to put the fed in interesting position if you it go above 2%.

and wely stronger policy expect to see fed tightening start to resume at the end of this year. haidi: how is the aussie dollar going forward? >> the u.s. is still the center of the universe when it comes to financial markets and the u.s. bond market tends to drive everything around the world. that gets transmitted to exchange rates. both in europe and japan, we've seen them back away from the extremes of that monetary policy experiment. you are starting to see asset bubbles build up around the world. central bankers seem to have taken a broader position in letting governments and fiscal policy and reforms start to carry a little more of the growth. from an australian perspective,

andaussie dollar is weekend that puts pressure not to cut. we continue to see this early rotation out of yield stocks, potentially broadening into longer duration growth stocks. the market looking for a new form of leadership. probably more u.s.-centric cyclicals to start with. we've seen that rotation back to materials. ramy: thank you very much, sean fenton, portfolio manager at tribeca investment partners. that is it from us. of theo come, around two presidential debate. live pictures from st. louis, missouri. we are about three minutes away from bloomberg television's coverage of that event going through the next two or three hours. i will be with you after that happens. haidi: it is really difficult to know what to expect given the

developments over the last 48 hours or so. those extraordinary tapes coming through from donald trump, and the latest development, the press conference called by trump ahead of that debate. our special coverage up next. this is bloomberg. ♪

>> welcome, bloomberg politics special coverage of the second presidential debate between hillary clinton and donald trump. we're live from washington university in singh the west where the candidates will face minutes in the high-stakes imaginable. i'm mark halperin with john heilemann in the spin room where we are going to have a complete pregame and postgame coverage of this big event on bloomberg t