>> 7:00 a.m. in hong kong. i am yvonne man. welcome to "daybreak asia." top story this tuesday, the deadliest shooting in modern u.s. history. 59 are dead. more than 500 injured. police say the killer possible to the is a mystery. president trump is to visit las vegas on wednesday. the white house says now is not the time to discuss gun control. betty: from bloomberg global headquarters, i am betty liu in new york, where it is past 7:00 p.m. on monday. facebook overhauling its rules on political ads. staffers will review the process. highrollers help casinos beat

estimates in macau. will this be another golden week for operators? betty: a lot of investors making their bets as well the u.s. markets will continue higher. we saw that today. might see this chart. i want to pull up g #btv 1516, which shows you the credit suisse stop hedging index, otherwise known as the fear gauge. the lowest since february. imagine that. this might geopolitical tensions coming upise what is from the headlines on tax reform, it looks like investors are pretty optimistic about the markets. they are not fearful at all, and you see the msci all country world index continuing to push

higher. you saw that in the equity markets after the manufacturing numbers came out better than expected. let us pull up the boards on that. another record, up .4%. the dow adding on 152 points. the nasdaq gaining ground, .3%. no stopping this bull market, yvonne. case.: seems like the the big question is whether investors are pricing in more about reflation and the trump trade on tax reform or if it is more on tighter policy. either way you look into that argument, it has different implications, especially for this part of the world in asia. a pretty good open here in asia this morning. let us take a look at how new zealand is varying so far. the kiwi unchanged at 7196. the dollar holding on today's thes after you mentioned

manufacturing data climbing to the highest in a decade. australia, a couple minutes in. we have the big rba decision later on this morning, expecting to keep policy rates unchanged. starting things off pretty much flat, up about five points right now. 7832 for the aussie. interesting for the aussie dollar now. we briefly dipped low 78 before the bulls stepped in. 3 dollars per barrel. look at japan as well. dollar-yen touching 113 briefly. we are slightly off that now. 112.71. in china.en week markets are closed. south korea also closed today. top stories here this morning now. president trump will visit las vegas on wednesday after the

mass shooting he has labeled "an act of fewer evil." it is shaping as a major test of his leadership with renewed calls for tougher gun-control. let us bring in our senior editor. the president making a televised address out of the white house earlier this morning, and it seems like it was scripted, measured. how was it received overall? joe: i think generally speaking, the president's words were soothing. he said the right things. and he kept it on a fairly ofn keel in contrast to some his quick comments after other tragedies overseas and herorist attacks where quickly tweeted out things sometimes that were not entirely accurate. here, he is being more measured. sadly a bit of a ritual for u.s. presidents during his -- u.s. president.

barack obama made 14 such addresses aftermath shootings. it has become his role to be something of the consoler in chief when it comes to these events. betty: joe, he is going to be to sympathizeegas with the victims of this las vegas shooting, but he is also headed to puerto rico. we saw the exchange of barbs over the weekend on puerto rico. what does he have two display, to show here? we saw a little bit of a different tone from president trump in reaction to what happened in vegas. joe: he has got to look to puerto rico and not continue the little bit of the fight he had going on with the mayor of san juan, and focus more on getting the relief effort. he has been very much trying to paint the rosiest picture possible of the relief efforts.

there are some challenges. as he frequently points out, it it is not easyo to get the supplies and relief things down there. but they are calling for more troops, more fema workers, in order to get those supplies out in an island that has no electricity and probably will not for some time. few passable roads. a lot of their workers are dealing with their aspect of the tragedy. betty: before we go, we got to talk about north korea because we continue to get comments from the white house saying that "no," they are ruling out direct talks. cannot imagine what is going on in tillerson's camp here. what do you make of these comments from the white house? joe: they are at odds with the state department and defense department. tillerson in the fed secretary, mattis, have talked about diplomacy, and tillerson made quite a deal about the fact that they have channels open with

north korea. less thana little bit trump's tweets over the weekend about tillerson wasting his time , but nonetheless, they ruled out having anything to do more with talks other than dealing the three u.s. citizens that are still being held in north korea. so at some point, they got to get on the same page. whether they are trying to pull some kind of good cop, bad cop routine with north korea, but the message is getting muddled, and it really will affect how the u.s. deals with north korea as well as with the region. thank you, joe. washington senior editor. let us get more in the first word news with jessica summers. jessica. jessica: betty, president trump's interior secretary is the latest to be investigated for charter flights. he disclosed he took three private flights since taking office in march, including a $12,000 late-night trip in june

from las vegas to his home state of montana. several cabinet members are facing questions about their travel, and tom price resigned on friday. are callingeaders for international mediation in their separatism dispute with spain. hundreds of people rallied outside the main police station in barcelona the day after a riotnt crackdown by the police trying to stop the referendum. the president says he will file a complaint after officers fired rubber bullets and beat protesters on sunday. opec's campaign to curb oil supply took a slight hit last month as libya's biggest field returned to production for cartel output was 32.8 million barrels, a rise of 120,000 in august. they have been exempt from the restriction. topliance among nations agree to curb production fell to 82% from 88% one month earlier.

a new survey shows prime minister shinzo abe losing some support ahead of japan snap election. the approval rating for his administration is falling seven points while the disapproval rating has risen eight points to 44%. support for the liberal democratic party is also down, but is so far ahead of the new .roup and japan airlines is fine-tuning its plans for the 2020 olympics in tokyo. the carrier expects a surge in tourism for the games and for the rugby world cup one year earlier. it is adding new international routes and has bought four 787 airliners. it is considering adding 25 airbus a350's to the 31 as already ordered. it will -- we aim to focus on india, but

we cannot ignore china, considering the enormous opportunity offered by its huge population. we are also taking the u.s. market seriously. our main focus would be those three areas. jessica: global news, 24 hours a day, powered by more than 27 and journalists and analysts in more than 100 20 countries. -- 100 20 countries. i am jessica summers. this is bloomberg. betty: can the bulls keep street?on wall we will take a look at the stories behind the record close today. geopolitical concern, violence in las vegas. as we thought earlier, that did not top stocks at all. su keenan. su: we have strong manufacturing data. a lot of the market focused on the big jobs data. we go to the close. no sign of any concerns outside of the economic realm. there was no terrorism attached to the las vegas event. the market was up, up and away.

let us look at the bloomberg. we talk about the strengthen the dollar which continues to rise. the smart money, as we like to call it, check this out. they have been selling into this. we are seeing speculators get short positions with the biggest rise. continues to strengthen, you could have a short squeeze which could push the dollar higher. something to keep a watch on. let us go into the big movers because they tell us the story of earnings that are ahead this week as well as tech strength. pepsico down in a big way after an endless downgrade. they reported earnings on the fourth. intel, the highest since november. motorsrength in general reporting two new electric cars. investors seem to be jumping on board. tesla are in the spotlight as well, right? extended trade, falling after saying they will miss production targets for the model three.

also, we heard from oracle as well. let us tackle tesla first. somefter hours, there is weakness. we are seeing a story. sedannderperformed on the that is designed to the more mass-market. underperformed in a big way. plus, record demand for the more pricing models. they actually exceeded targets for general deliveries, and in terms of what tesla's founder is saying about the sedan, he talked about the fact that it was going to be "hell to ramp up production." so it was a big mix. but they do say it is something that will focus on. shot.our best they continue to capture it. he stopped in -- the stock is reflecting that. anchor: they are putting their faith on elon musk saying this

is awkward to change long-term expectations. now, weto commodities see oil in the bull market rally som stumbling a bit. su: indefinitely, opec as part of the mix as well. opec output is creeping up a bit partly because of the addition of libya, and so, that is a disappointment to some of those traders on wall street investors that were optimistic that opec could reign it in. ein it in. we have not been at that level since may, coming back down. if we look at gold, what we see is continuing weakness as well. focus on been a economic strength. there has been a focus on fed hikes and the manufacturing data added to the pressure on gold. yvonne: all right. oracle looking ahead. we will hear more from the ceo, taking on amazon. and what it says is one of its biggest announcements ever. we'll hear from the coo later on. betty: president trump's tax

plan. we will speak with one of the most influential bipartisan dealmakers on what she thinks he can achieve. and what the impacts from president trump's tax plan are. this is bloomberg. ♪

betty: we are counting you down to asia's first major market open this morning. japan futures heading higher by 70 points right now after we saw, once again on wall street, record highs in all the major indices. solid data adding to the euphoria. this is daybreak asia. i am yvonne in hong kong. betty: i am betty liu in new york. companies may be hit by a new tax on president trump's tax reform plan. it attacks multinationals on the money they make a broad. for more on this trump tax plan, we are joined by the president of the committee for responsible federal budget. is considered one of the

most influential bipartisan dealmakers on capitol hill. i don't want to say it is funny, but it is a little bit interesting that we are still coming through this nine page basel and finding tidbits that we did not realize. are you doing the same thing, and what do you think of the latest revelation? >> we are doing the same thing, but it is very hard to figure out because on one hand, nine pages is a lot more than the lastbullets we had les time. the final details are not filled in, and that includes taxation of multinationals an individual taxation, where the different rates would be and includes the base runners, when we get rid of a lot of the different tax breaks, which once we get rid of and how. those details, still to come. how would this affect the economy, how would this affect family?

different companies? we cannot draw any real conclusion because this is showing us bit by bit. i want to see the whole bill and figure out the overall impositions. betty: do you hate this one more or less than previous tax plans? maya: i love the structure of this tax plan. i think tax reform is critically important. we need to do everything we possibly could to grow the economy and i really like some of the major objectives of this which is to bring the rates down and broaden the base to offset the cost. let us do so in a way where we focus on the major need to reform our corporate tax which will help the overall economy. the part where you would actually make hard choices, pay for the goodies we are all going to get, is very thin.

by our numbers so far, there is $2.2 trillion hole in what they promised. we have near record levels of debt. we cannot afford to borrow $2 trillion. that is the part i hate. yvonne: we certainly saw a glance of that with the study that came out from the tax policy center last week saying the tax increases are going to be nearly 30% of the middle class. about this as well. how likely do you think republicans are going to be able to back this plan? maya: i think if you look at this from a political perspective, republicans need to win here. they need to get tax reform done. if you look at this from the economic perspective, there is a great reason to get tax reform done. it is one of the things that could most help grow the economy. if you look at it from a fiscal budget perspective back to that record levels that we have, they have not talked about how they would pay for this fully, and

paying for things is where the real policy choices are, and right now, i think they are looking for something to get done without a lot of pushback. there is a constituency for every single tax break they want to think about getting rid of. it is going to be a heated time in washington where we figure out how you can pay for this and to bring it full circle, if we do not pl pay for the plan, it will not grow the economy over the coming year. repatriationthis plan does as well is he wants it to be ballpark 10% range rather than a split. this has been punted to congress. how likely do you think this could go through? could this be the situation we thought the border adjustment tax, which was basically dropped? and what could be the net effect from this type of measure? maya: it is hard to say. we will look at different ways when we are taxing the multinationals. the goal has been how do we keep

our companies headquartered in the u.s.? and how do we bring back a lot of the capital that has been locked up overseas? you need to find a rate that gets people to bring money back here. i cannot tell you what the right rate is going to be. a combination of how we tax our global companies, changing how we do expensing, and a lower corporate tax rate could and should be structured to bring about competitiveness at a time when that is what u.s. corporate of four. betty: i want to bring up a debt as a u.s. percentage of gdp. our debt just skyrocketed. has been ok because our rates have been at record lows, so it has been ok to see in many ways. to absorb the impact of higher debt. ,nce we raise rates even more

what is the consequence of that? is that enough to possibly put us into a recession here in the u.s.? maya: that is absolutely the right point. at these nearebts record levels, but looking forward, it is projected to grow by another $10 trillion over 10 years, and that is if we do nothing. the way it is structured, that would make the situation worse. so the debt trajectory is unmanageable, unsustainable. we have the debt growing faster than the economy. that is the biggest our debt is that is the biggest issue. our debt is so high, that would grow the cost of servicing the debt by $130 billion a year, so we are incredibly vulnerable to these rate increases. it will have an i enormous consequence. it very likely will happen. betty: does that jeopardize our

credit rating? moody's said that is a risk here. do you see that in the future? maya: i do. last time we were downgraded, it was over the gridlock in washington. we all know it is true. it is looking the other way. certainly jeopardizes our situation. one of the interesting things is when you compare us to other countries, nobody looks that good, so we continue to be the country where a lot of people park their money and see us as a safe haven. at what point does our debt, combined with our political situation, make people less confident? they want to diversify. betty: maya macguineas, the committee for a responsible federal budget. now, you can get a round up of that story and many more you need to know to get your day going in today's edition of daybreak. bloomberg subscribers can go to dayb on their terminals and it is available on mobile in the bloomberg anywhere app. you can customize your settings so you only get the news on the

industries and assets you care about. as is bloomberg. ♪

betty: this is "daybreak asia." i am betty liu in new york. yvonne: i am yvonne man in hong kong. banks are ready to channel hundreds, possibly thousands, of employees out of the u.k. for the combined brexit bill. asare told costs are soaring londoners find it more difficult to persuade staff to move abroad. they predict a shortage of experienced workers after the split. is said to have signed a lease in frankfurt, making it one of the first foreign banks. japan's second-biggest lender is powere one in your mind in the financial district and

plans to put as many as 100 people there. the tower's website that each has 1200 square meters of office space. yvonne: goldman sachs asset management has joined a list of firms planning to absorb the cost of third-party research out of the e.u.'s regulations come into force in january. the manager of more than one trillion dollars in assets says it will pay for analysis by its european teams but did not disclose the bill. they want to separate the research from trading related expenses. betty: hedge funds are concluding there is safety in numbers. managers are clubbing together platforms to share the cost of the regulatory overhaul and get help with paperwork and the low compliance. are what firms can tap into to lower their administration costs. ii'll talk more about mifid in daybreak asia.

a lot coming up, yvonne. asnne: that impact in asia well. facebook also plans to overhaul its rules on political ads and will include a massive hiring spree. the details, next. this is bloomberg. ♪

anchor: 7:30 a.m. tuesday morning in hong kong. coming back from the national backoliday, people getting to work this morning. 30 minutes away from asia's first major market open. betty. 7:30 p.m. monday evening in new york, where markets closed higher. you can see the empire state holding is dark in the background. according to the twitter feed, the lights are darkened for the victims of the las vegas shooting with an orange halo effect shining a light on gun violence, so again, empire state lights off interview to the victims of the las vegas shooting that happened last

night. i am betty liu in new york. yvonne: i am yvonne man in hong kong. you are watching "daybreak asia." first word news with jessica summers. jessica: president trump will visit las vegas on wednesday to meet survivors and emergency workers after the deadliest mass shooting in modern u.s. history. 59 people were killed. more than 500 were injured when a 64-year-old retiree opened fire on the country music festival crowd from the 32nd floor. he killed himself and his motive is not known, but he had as many as 20 guns in the hotel room. janet yellen says the decision aig from tight supervision is an example of the process working properly. a "too bigpproves it to fail" institution can make less of a threat. scaleake smaller

restrictions built by the dodd frank act and obamacare regulators. apple and other global companies may be hit by a new levy tax on the president trump tax reform plan through the last page of the brutal contains the attention to tax multinationals on the money they make abroad. some put it at 10%. discussed in a senate finance committee hearing later on tuesday. indian gasoline and diesel joining the push to persuade more drivers to use natural gas. the top three stayed on refiners will use the fuel stations to sell gas for cars as well as increased investment in projects and the use of the refineries. minister wants to raise gas usage to 15% by 2020 to 6% now. goldman sachs is said to be exploring how it could help clients trade bitcoin and other digital currencies.

to approve a plan. last month, jpmorgan's ceo, jamie dimon, said bitcoin is a fraud, and he would fire any employee trading it for being "stupid." goldman sachs has invested in the bitcoin start up. a second wayow has of accessing the internet with a link from russia going live for the weekend. cybersecurity form fireeye says the telecom has long-standing ties with pyongyang and its web connection complements from china. fireeye says it reduces the possibility of the u.s. being able to pressure beijing to turn off its connection. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg.

yvonne: jessica, thank you. we are counting down to the market open in japan. take a look at australia and new zealand is so far. not following through from the gains we saw on wall street. the stronger dollar. sophie kamaruddin. so the: we could be look -- sophie: we could be looking at it holding steady, holding on to overnight losses ahead of key u.s. data later this week. breaking the 113 levels. taking a look at what is going on with wall street. u.s. stocks rose to record highs. we have the dollar trading near the strongest level since mid-august. if after u.s. factory data enjoyed the strongest pace in 13 years. this adds to the global growth story. we have the strong china pmi numbers. the report helping out the picture, although the run up in the dollar is prompting some speculators to build on short positions at the biggest level since 2013. yvonne: we saw the news yesterday from nissan about the shocking --

the ceo under fire right now. sophie: the nissan ceo announce on monday a plan to recall 1.2 million vehicles plus another 34,000 that have been slow but not registered. this potentially could cost the company $222 million. it is going to affect almost every model made and sold in japan over the last three years, but not going to involve the calls that were exported. this involves examiners that had the correct -- the stock is down 9.7% year to date. betty: what else are you watching at the tokyo open, sophie? maya: betty, a couple of -- sophie: betty, a couple of interesting things. they have entered a pact with aig to buy its medical business. this would place tokyo marine among the top three in the industry. a thought he is planning to sell stakes in two indonesian ventures with a local partner.

the condition of the sale remains undecided. operating byt its 10%. the operator is currently reviewing the store due to this weakness in its results. fallen 17%.tock has sophie kamaruddin taking a look at the factors in the markets. it is planning to overhaul its political ad rules in the wake of russia's alleged involvement. to hire an x or 1000 staffers. alex webb has more on this. is there any number of people that facebook could hire that could actually take care of this growing problem here between fake news and fake accounts? alex: it is hard to tell at this

stage. they said in blog post today, some of the executives, one of the executives in particular, head of communications, said that had these measures been in place before the election, they were confident the sort of violence and this sort of peddling of influence would not russiann affected by accounts and people, so that is the facebook argument. wenne: and we did hear -- are putting it on the board now. ,ark zuckerberg apologizing making this statement on yom kippur. talking about the challenges he faces, of course. i will bring up the chart. "i asked for business. i will ask fo forgiveness. better."rk to do there has been so many political fires that have been, you know, plaguing facebook right now. what is going to help in this

move here in terms of monitoring some of these ads? we saw more detail coming through here from some reports about what type of connections the russians did have with some of these groups when it came to not just gone lobbyists or black dogs matter, but also lover groups as well. it is quite alarming. there are some reports from washington post and new york times this morning saying identifying some of these groups that have been created by these russian accounts. there was one which was a dog lovers group. it is unclear what the endgame was, maybe to build up some sort of following and then gradually place ads or content which would have influenced those people. display by the ceo, mark zuckerberg, on saturday, was a change which has been happening where he gradually realized that is the correct or better approach. tothought it was crazy that

suggest that facebook had any influence on the election. it is very much a 180 turnaround in that. it is hard to identify groups particularly. how itbe easier to see influences the group dynamic. yvonne: interesting. joining us from san francisco. after a series of potentially growth slowing events from hurricanes to separatists clashes in spain, manufacturing has shown surprising strength in the u.s. and europe. let us get to kathleen hays in new york for us. kathleen, first, it was the strong number in the u.s., but you have to factor in some of the hurricane effects, too. kathleen: you certainly do. it will be hard to ignore the hurricane's impact on u.s. economic data over the next couple of months, yvonne. bottom line, u.s. manufacturing, according to the institute for supply management purchasing manager index, starkest in 10 years.

what happened with the hurricane had to do with the deliveries. it is one of the subcomponents and measures how long it takes me, a manufacturer, to get goods to my customers. if it is a slower time, it is because i am so busy. in the case of the hurricane, it is the hurricanes that made it tough for me to get the goods out. a little twist. when you put it to one side, you see output and orders looking quite good. let us take a look at #btv 8651. you see a simple chart that shows a clear story. thewhite line is the -- turquoise line is the overall pmi. that is one that hit 60 point eight. this is new orders. look how well they track. , that is up to 60 46. anything above 60 is good growth. how about the federal reserve?

strong manufacturing. more chance of a rate hike. two fomc voter than what they said today, starting with the president of the dallas fed. he has not reached a conclusion on the december rate hike it. he wants evidence of inflation momentum. he wants to be sure it is going there. neel kashkari, who has assented on the two previous rate hikes said he has got to see inflation. the core pce has the 2% target and he thinks the rate hike so far has been dampening down inflation expectations, making it harder to reach the target. the world interest-rate projections show 70% chances of the rate hike in december. board with so far on the fed consensus, which seems to be looking to hike rates at the end of the year. yvonne: in europe, manufacturing data are pretty strong. the factories are having a hard time finding workers. right? how is that going to affect ecb policy?

>> it will make them more confident about gradually removing stimulus. we have been so concerned how strong the recovery will last. your area pmi hit a 6.5 year high. their job component was the strongest level in 20 years since they started doing the survey. , going bloomberg chart now into #btv 1960. what you will see is the right line. there is the composite index well above 50, which is way over here. that has moved up. look how they have moved up together. a steady drop in unemployment. a nine point 1% higher by the rest of the world's standards, but much better than it was a few years ago. again, a very big component here. across the whole euro area, their pmi's were stronger in all the major european economies by

germany, france, and even greece. definitely a reassuring find your the ecb as you know is going to meet on october 26. they will have the big debate on what to do with qe, how to taper, and that is how we will start to see a modest, drawnout tapering. pretty much, everybody thinks numbers like this help with confidence. if inflation is not up to their target, it will move in that direction. anchor: thank you. kathleen hays. much more ahead. oracle taking aim at amazon in the cloud with a new database service. we will hear from the ceo, next. this is bloomberg. ♪

anchor: and foggy picture outside tokyo this morning outside of imperial palace. are seeing japan futures losing a little bit of steam.

60.6 that could open in tokyo this morning with dollar-yen seeing a bit of weakness in the currency. this is daybreak asia. i am yvonne man in hong kong. liu in new betty york. oracle taking the fight to amazon with a new database service. company to thee next level. bloomberg technology editor at large cory johnson spoke with ceo marc heard about what makes the new service so revolutionary. >> it is called the autonomous database, so it is not a highly automated database. it is an autonomous database. things like, people spend hours and hours tuning databases, trying to patch them, which has become a more well-known word over the past few months than it ever has before. that had to beff done technically, now, it is going to be done automatically, autonomously, done by us, and it

will set of implications out of all of this, cory, but suffice to say, it is extremely significant, a lot lower cost, and much more secure, much more automated. it is just a fantastic set of announcements from our product team. >> what is the technology that allows us to work not just fixing itself, but more quickly? >> it is really all done in "machine to machine learning." without getting to all of this machine learning, when you get into all of the technology, we tried to talk more about what it our, but it is basically computers getting smarter and smarter. the more data the computer has, the smarter all of the decisions that the computer makes. something as simple as being able to understand potential

intrusions, anomalies. i can go through all of this in a lot of detail. i know we don't have a lot of time right now. this is basically technology doing the work. today, computers can recognize faces better than humans can. >> i want to ask you about m&a. larry said in a conference call that there were not a lot of obvious target out there for oracle, which i think seemed to be a bit of a different deal on the marketplace. you guys have a robust m&a team with oracle. have you acquired what you need to acquire? acquisitions might slow down? >> i would not expect much of a change in our behavior. we have always been disciplined, whether you hear from larry or from me, you will hear the same story. we look at things that make strategic sense for us. we do not buy things to buy things. they have to make sense strategically. have to make sense financially

for us or we do not do them. third, it has to be something we can actually run. we can actually optimize when it gets inside the oracle family. we use those filters. the only point larry was making was compared to maybe a decade ago, where there were lots of the market iset, consolidating, changing. it market is dynamic, and does not take a lot of analysis to say there is less targets than there was before, and we will continue to be discerning. >> is there a proposal of repatriation of assets from overseas? i wonder how that might change what the plans are, and would oracle higher more? -- hire more? would oracle acquire more if they could bring cash back? >> we have been running the company in a way to invest into the company as we speak regardless of repatriation. speak, so as as we

you look and listen to lots of changes in workforces and layoffs in our industry, that is not us. .e have been investing not seven or eight years ago, our headcount was 80,000. it is not 147 thousand euros some of that is m&a, but a lot of that is organic hiring in r&d and sales. we would love to repatriate our cash to the u.s., and there is no question we would invest it in the u.s.. yes. anchor: that was oracle ceo mark hurd speaking to our very own cory johnson. one feature on the bloomberg we would like to bring attention to is our interactive tv function at tv . not only will you be able to watch us live but see some of the previous interviews and functions we talk about. you can become part of the conversation. this is of course for bloomberg subscribers only. check it out at tv .

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betty: this is "daybreak asia." i am betty liu in new york. i am yvonne man in hong kong. reports from in the essay the government has decided to help its flag carrier move move towards a sale by shifting much of its debt into a separate vehicle. the economic times says the decision was taken at the end of august. air india will be offered with debt to lookft more attractive. billion -- betty: tesla dropping extended trade as you can see after admitting production of its cheapest car has been a struggle. demand for more pricey and modeled surged. it built 260 model threes through september. well below its august forecast

of 1500. model s and model x deliveries climbed to a record. tesla says it will exceed deliveries by several thousand vehicles in the last six month of the year. yvonne: new ford ceo jim hackett toes investors tuesday answer questions about the share price and was ways he is driving the company. since taking over in may, he has reversed course on billing the .ocus in mexico he partnered with lyft autonomous car's preferred stock continues to chug along, lagging the market for the past three years. betty: macau is gearing up for its busiest golden week in four years. boosted by the -- macau, sogle is in how is it shaping up so far, golden week there? stephen: i was expecting huge

jostledo be pushed and butet to the cotai strip, nobody is up yet. it is pretty empty. folks coming over. the cameraman took the 4:00 a.m. boat. they aree arrivals -- spending a lot of money this year. the last time i was in macau is exactly one year ago, and we did not know it at the time, but that was really the bottoming out of that two-year slump because of the xi jinping crackdown on corruption three gaming revenue has dropped for two years straight. we did not know that was kind of the bottoming out. we have had 14 consecutive months of growth receipts rising in macau, and there are a number of reasons for that. i can run through that. for one, this golden week that began on sunday, this is called a super golden week, extra glitter. ok?

there is an extra day for the mid autumn that's why added to it, so instead of seven days, it is eight days. ahead of the congress coming up, normally we would get some research and out of the mainland to macau, but there were no such restrictions this year, so the floodgates are kind of opening up. again, there is pent-up demand because of the big typhoon we in august.it macau 10 people died. construction was halted. there is pent-up demand going into golden week. anchor: and certainly of course. what are you expecting in terms of the crowd? maybe they were already hero the weekend? we might have missed out on the swarms of people at the terminals. this point last year, there were a lot of hotels that were giving out rooms for free almost. a lot of the casino operators as well. stephen: no, they are not for free, ok? we are going back tonight. i do not think i can amex

the night on my company got a card. on the cotai strip, it is 80% booked out. ,hat you can get is the suites 10,000 hong kong dollars, through 1300 u.s. dollars a night. they are going for five times the normal rate, so if my boss is listening, if you are ok with me spending that, i will go ahead and stay a few nights and check out the real pull of this place. -- pulse of this place. the numbers are up. high 970,000,ade 1.2 million, come from mainland china. we are tracking a 5% increase on those numbers this year because of the super golden week this year. anchor: all right. place your bets. stephen engle, thank you. we will talk to you in a bit, joining us from macau. we have more on the bumper golden week expected in macau. partnerting management

in 40 minutes time. we have the market open in japan. futures heading positive here this morning. more to come. this is bloomberg. ♪

betty: 8:00 a.m. here in hong kong. , live from bloomberg's asian headquarters. yvonne: i'm yvonne man, welcome to "daybreak: asia." the las vegas shooting was the deadliest in modern u.s. history. 59 are dead, 500 injured. the killer's motive a mystery. president trump is to visit survivors on wednesday. the white house says now is not the time to discuss gun control. betty: from bloomberg's global headquarters, i am betty lou in new york, just after 8:00 p.m. oil continues to fall and opec nations pomp more and u.s. drillers add extra rigs. brent dropping frexit straight session. as we saw, chinese highrollers

helping casinos beat the streak in macau. will this be another golden week for operators? yvonne: let's look at a golden day when it comes to wall street, despite the devastating scenes out of las vegas. it has also been a golden month for the dollar as well. let's take a look at the bloomberg, #btv 1946, the first monthly gain since february. not everyone convinced about this greenback rally. when it comes to the hedge funds , we are seeing net short sinceons, the biggest 2013, back in january at that time. given all the optimism we have seen when it comes to tax reform, there are still some people in the market, particularly large speculators, that are actually doubting we

are going to get much when it comes to tax cuts. if we continue to see this rally and run up, these people are really going to be squeezed pretty soon. betty: indeed. if you look at what happened back in november 2016 with the dollar, i think this is what is concerning, that we are going to see another repeat, the rally will be brief and we will go straight back down with the dollar. hard to see the dollar strength given that inflation is still nowhere to be found and some doubts whether the fed really can continue to hike rates as fast as they have. in the meantime, there was that rally today in the u.s. markets. that is helping propel some markets in asia higher, but before we take a closer look at the markets, let's get to the first word news with haslinda amin in singapore. haslinda: catalonian leaders are calling for international mediation in the separatism dispute with spain.

hundreds of people rallied outside the main police station in barcelona a day after a violent crackdown by riot police trying to stop the referendum. the catalonian president says he will file a complaint after offices fired rubber bullets and be protesters on sunday -- beat protesters. opec's campaign to curb oil supplies took a hit last month as libya's biggest field returns to production. qatar's output was 2.8 million barrels a day in september, a rise of 120,000 from august. libya and nigeria have been exempt from restrictions because of years of unrest and violence. compliance among nations who agreed to curb production fell to 82% from 88% a month earlier. shinzo abey shows losing some support ahead of japan's snap elections. the poll has the approval rating for his administration falling seven points to 37%. the disapproval rating has been eight points to 44%.

support for his liberal democratic party is also down, but still far ahead of the new leader led by tokyo governor eureka cai k. plans for the 2020 olympics in tokyo being fine-tuned. the carrier expects a surgeon terrorism and for the rugby world cup a year earlier. it is adding new international routes and has bought for dreamliner's to bolster its late. it is also considering adding 25 air buses to the 31 it is already ordered. they told bloomberg it will raise the game in traditional and emerging markets. [translated] we aim to focus on india but can't ignore china considering the enormous opportunity offered by its huge population. we are also taking the u.s. market seriously. our main focus will be those three areas.

haslinda: global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm haslinda amin. this is bloomberg. yvonne: thank you. take a look at the regional benchmark in asia, flat this morning. the stronger dollar potentially could be a headwind for most markets. let's get the latest with sophie kamaruddin. sophie: asian markets are looking mixed this morning despite records we saw on wall street. the nikkei 225 extending monday's gain as the yen is holding overnight losses, trading at 112. shares in wellington and sydney are sliding. check out what is going on with the kiwi dollar. the currency is falling for a third straight day, after a third quarter business confidence slipped to five versus the 18 registered for the second quarter. we have markets in south korea closed today -- closed today along with china as well.

elsewhere, keep an eye on the aussie dollar, looking reluctant to add on to their positions here, falling commodity prices might also be playing into the sentiment. we have the bloomberg commodity index trading near its lowest levels since august 31. gold trading flat, holding losses around 1271. base metals are mixed and oil continuing to slip as opec production increased last month. jpmorgan has raised their oil forecast for the fourth quarter due to tighter balances, better demand growth, and stronger-than-expected opec compliance. jpm sees brent at 5450 and a touty i to hit -- and wti hit $50 and that. -- in that period. that benchmark is halting a three-day rise. the share market has not been that lucky so far this year. although australia is close to taking the global crown for the longest stretch of uninterrupted economic growth, that is masking

underlying woes. take a look at what is dragging on the index. i.t. sliding over 1%, energy and consumer stocks also on the back foot. well,n eye on minors as being led lower by steel and gold players. iron ore players after ubs latest estimate, the miners saw an 8% rise in september. check out what is going on with technology, one falling the most since september 2009 after forecasting growth. beach energy also sliding, snapping a six-day rally. another one is gaining ground after a newspaper reported that property investors are discussing breakup options. betty: thank you so much, sophie kamaruddin with some of the movers in hong kong. president trump will be visiting las vegas on wednesday after the mass shooting he has labeled them to act of pure evil, the

massacre shaping up as a test of his leadership. there are new calls for tougher gun-control. jodi schneider joins us now. we saw a much more subdued response coming from president trump. what did you read into that reaction to the las vegas shooting? , it isn times like this called upon for the president to be a comforter in chief. we saw this with his -- the people who came before him. they were good at that. president clinton was really known for that, but presidents bush and obama as well. this is a time where the president has to draw together the country and speak words of comfort and try to bring people together, after a horrific shooting like this. that is what we will be looking for from him as he goes to las vegas. gunman,the suspected terror links are still unclear. the motive, we are still unsure of.

when it comes to the issue of gun violence, we did not hear that really mentioned during trumps speech today -- during trump speech today. sarah huckabee sanders mentioning now is not the time. how likely could we see another national debate on this issue? jodi: i think we will see some debate, but it is really talk to talk about serious gun-control legislation in the congress. the president himself has been very supportive of the nra and against any curbs on gun ownership. he made that quite clear during the campaign. one of his first acts was to roll back some of president , basicallytrols making it harder for people who are mentally ill to get guns. he brought those back. it is very unlikely we are going to see the president supporting that. we may hear some debate in congress. ,fter the sandy hook shooting at an elementary school, congress -- the senate, which

was controlled by democrats -- was unable to pass background checks. in a republican-controlled congress and senate, it is hard to see that happening, even after a horrific shooting. betty: indeed. i want to move on to some of the events happening overseas, specifically north korea. we heard today from the white house that they are ruling out direct talks with north korea, different from what we heard from rex tillerson over the weekend. rather than this be a good cop bad cop strategy, it looks as though the white house is undermining what tillerson said. jodi: they certainly do have a difference of opinion, at least publicly. rex tillerson quite clearly said over the weekend that they would be willing to have talks, that they had back channels. then the president came out and again called north korea's leader rocket man and said , don't bother with

rocket man, don't waste your time. it would seem there is a divergence of opinion. however, the white house has not ruled out back channels. they say they won't have direct talks. the president made it clear talks are off the table. but back channels and trying to work out some ways of resolving things or at least calming things down diplomatically does not appear to be off the table entirely. yvonne: we mentioned about how las vegas would be a test of leadership for trump. he is expected to go to puerto rico on tuesday as well. what should he brings this trip? he has gone through controversy regarding the san juan mayor. what message is he going to bring there? jodi: it is going to be important, both for puerto rico and las vegas, particularly given the comments a macron puerto rico. after texas when he went but did not really provide comfort or kind of posture, kind of stayed

away from the key areas. so it will really be a test. can he provide that comforter in chief kind of posture, the kind of thing people are looking for in the u.s. after a crisis? we will have to see what happens in the coming days. yvonne: thank you, jodi schneider, asia editor joining us in hong kong. still ahead, macau casino operators are betting on a big chinese holiday week. we get analysis from an asian gaming consultancy. betty: up next, banks and brokers brace for new eu regulations that will change the way they do business. we will get advice may law firm that specializes in regulatory advice. this is bloomberg. ♪

yvonne: this is "daybreak: asia ." i'm yvonne man in hong kong. betty: i'm betty liu in new york. three months today until the

european union's new markets and financial instruments directive roles come into effect, known as mrs.. here is bloomberg's quick take on why banks and brokers globally are scrambling to comply. stocks and bonds have bounced since the 2008 financial crisis. the public's trust has not bounceback. not with banking scandals creating the sense that financial markets are unfair. many politicians and regulators see leveling the playing field as unfinished post crisis cleanup. a vast set of new european union rules known as mifid ii will force on president and transparency on banks and brokers. the eu rules will apply to any institution trading european securities. traders are scrambling to comply with a revision of the eu's markets and financial instruments directive, mifid for sure, which goes into effect in january 2018.

sets up and the way brokers share information and get paid. many of the rules, like those requiring brokers to synchronize lots and store recordings of phone calls, are designed to give regulators information to reconstruct events quickly. others unravel conflicts of interest, like routing trading commissions to firms in return for investment research. some of the mifid ii guidelines go further than dodd-frank regulations. here is the argument. banks and brokerages say regulators are overreaching. critics say by forcing the disclosure of prices, trading may be inhibited and market liquidity may be reduced. authorities say the new rules will help restore trust and strengthen consumer protections while fostering competition and encouraging more independent research. what is the legislation and how big an impact could it have on firms in asia? which may not be fully prepared.

joining us now is linklater's partner assume it in for -- sumit indwar. thank you so much for joining us. the clocks are taking, about 100 days left. are you seeing asia getting more inquisitive about mifid ii? what are you hearing so far? >> definitely. there has been an massive uptake in activity in the last three to six months. six months ago people were saying it is a european thing, we have until 2018. people have been spending more time and money in preparation. yvonne: are they ready to comply? >> getting there. we are seeing more effort deployed, but there is still a lot of work to do and less than 100 days left. yvonne: what is the question you get asked most? we have seen a lot of european firms headquartered in the block, preparing this for years. is it different when it comes to asian firms headquartered here in asia that have operations in the u k and europe?

>> the question i get most often asked is, does this really apply to me in asia and the u.s.? the answer is it does, but indirectly. for the most part it is for people regulated within europe, european day asian and brokers will be working with affiliates who are regulated in europe. because of that, european counterparts are going to be asking dealers around the world to change the way they are serviced in a european compliant way. betty: the whole purpose of these new regulations is to make investors more confident, to protect investors, to increase transparency. do you think it is going to go a long way toward that goal? >> i genuinely hope so. i think you are right, there are two big drivers behind the mifid ii, one of which is to increase protection, the other to push as much trading as possible into transparent markets, the aim

eating to hopefully prevent and detect market misconduct earlier. institutions and regulators around the world spend vast amounts of time and money preparing for this, so i hope it goes a long way to the filling those aims. betty: at some point we have to go from hoped evidence to know it is actually working -- from hope to evidence to know it is working. how long do you think it will take? >> i think with any sweeping regulatory changes, it takes time before you actually feel the effects of what is going on. it is too early to say. we have the go live data on january 3. my sense is it will take a couple financial years for us to understand the impact this has had on trading and transparency, in the same way when mifid i came into force it took a couple of years for regulators to perceive the gaps. i think we are a year or two out from seeing the effects. yvonne: the debate has been over

the price of research, right? the big challenge we are seeing as how are they going to pay for this? and how willing and what is the appropriate price of research? what is the gauge get out of asia asset managers on that view? you heard some firms like goldman's saying overnight that we are going to try to use our profits to pay for this. others saying they're going to pass on the cost to investors in the most transparent way possible. >> i think there will be a divergence of opinion in the market. the rule on not receiving research is going to apply the european asset managers. it is a question for the broker-dealer community. how are we going to service european clients? a european asset manager saying they're going to pay out of their own pocket. other asset managers may say they don't see the value in research and don't want to pay. either way, broker-dealers in asia and u.s. are going to have to start thinking how they're going to price research when their clients have that option.

yvonne: do you think the rules will eventually apply here in asia as well? some people say investors are global, you can't have one set of rules in europe and one in asia. >> i think that is part of it. the global financial institutions are global. it is hard for a global bank to be able to say, we are going to apply these rules in this country and a different set in another. you have to look at the purpose behind legislation. the rule on research has very much been driven by u.k., european regulators feeling like they don't like the payment type model. in asia, there might be different concerns, perhaps not enough research, so moving to a model which would discourage research might be a viable in the short-term. it depends what you are trying to solve. betty: getting back to the pricing of this research, as you mentioned, firms are going to have to see the value of the research and how to price it. it is always interesting, once

you put a price on something, and if you put a high price, you had better make the quality match the price. do you think the quality of research is going to get better with this? >> that's a really good question. i think it will be -- i think it is one of the intended consequences. i think people are going to have to think about how to justify those costs for those asset managers who are willing to pay. now that you are having to unbundle research costs for european asset managers, they can be more discerning. i think they will look to gauge quality between different providers. betty: do you think it is going to reveal some of the holes in research today? >> potentially. it is all about supply and demand at the end of the day. i think the question will be whether at a macro level we are going to see u.s. research being produced because the asset management community feels they don't need as much. that is going to be an interesting development. yvonne: given how this could

potentially jolt not just asset managers but the derivatives side of things. what about the hong kong play? there have been rumors they are trying to beef up the financial hub when it comes to derivatives trading. is there a potential for hong kong to take it vantage of? >> yes. i think one of the options coming under mifid ii for non-eu financial services providers, for example hong kong, to access european markets directly for the first time, that is all subject to the local jurisdiction in hong kong being found equivalent to mifid ii. every step we take in hong kong to beef up the rolls around conflict of interest, soft dollars, disclosure of costs and charges, that will help hong kong in the future be able to access europe. yvonne: thank you. we don't talk about this topic too much, so thanks for giving clarity. sumit indwar from linklater's partner. you don't want to miss our

exclusive interview with a board member in bloomberg markets at 10 past 11:00 hong kong time, too: 10 in sydney. this is bloomberg. ♪

yvonne: a quick check of the latest business flash headlines. reports from india say the government has decided to help its flag carrier move towards a sale by shifting much of its debt into a separate vehicle. the economic times says the decision was taken at the end of august. air india will be offered with only aircraft debt on its books to make it more attractive. the carrier is almost a billion dollars in debt and about $5 billion of that -- almost $8 billion in debt and about $5 billion of that will be moved away. tesla fell after admitting that its latest car has been a struggle. demand for its cars has surged.

x deliveriesodel climbs to a record and tesla says it will exceed first-run deliveries by several thousand vehicles in the last six months of the year. a new ceo faces investors tuesday with questions about the share price and which way he is driving the company. he is taking over in may. hackett has reversed course on mexico, pushed into electric and china and india and partnered with lyft on autonomous cars. ford's stock continues to churn along in the second year, lagging behind the broader market for the past three years. an indian ryan held are said to have picked up $2 billion in new funding from investors, including softbank and tencent. other investors reported to be the university of california's investment arm. focus onwill help ola india and take the challenge to uber. we are told the funding round is

not finished and the final amount could change. betty: just when you thought it was safe to get back into oil, new problems are bubbling up. this is bloomberg. ♪

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yvonne: 8:30 in singapore, half an hour away from the open in trading. i'm yvonne man in hong kong. betty: looking a little gloomy, though. i'm betty liu in new york. you are watching "daybreak: asia ." let's get to the first word news with haslinda amin in singapore. willnda: president trump visit las vegas wednesday to me survivors and emergency workers after the deadliest mass shooting in modern u.s. history. at least 59 people were killed and more than 500 injured when 64-year-old retiree stephen paddock opened fire on a country music festival crowd from the 32nd floor of the mandalay bay hotel. paddock killed himself and his motive is not known, but he had as many as 20 guns in the hotel

room. apple and other global companies may be hit by a new levy tacked onto president trump's tax reform plan. the last page of the proposal contains the intention to tax multinationals on the money they make a broad. the rate and means are not specified, but some put it at 10%. the idea may discussed in senate finance committee hearings later tuesday. indian gasoline and diesel producers are to join the push to persuade more drivers to use natural gas. the top three state-owned refiners will use their fuel stations to sell compressed natural gas for cars, as well as increase investment and gas projects and the use of fuel in their refineries. modi minister narendra wants to raise gas usage to 15% from 2020 -- by 2020 from about 6% right now. goldman sachs is said to be exploring how it could help clients trade bitcoin and digital currencies.

the bank is in talks with cryptocurrency experts but has yet to approve a plan. jpmorgan ceo said bitcoin is a fraud and that he would fire any employee trading at for being stupid. goldman sachs is further along and has invested in bitcoin startup. north korea now has a second way of accessing the internet with a link from russia going live at the weekend. sayssecurity firm fireeye the telecom has long-standing ties with pyongyang and complements the original from china. fireeye says the second language has the possibility of the u.s. being able to pressure beijing to turn off its connection. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm haslinda amin. this is bloomberg. yvonne: thank you. time to see how the asian markets are shaping up. china closed for the rest of the week, hong kong coming back

online in an our, but korea still closed. looking pretty mixed. sophie: that is the case when you take a look at the equity space. we are seeing slight gains for the yen. check out what is going on with gold, gaining about .1% but still around the 1272 handle. one standout in the current space is the kiwi dollar sliding today after business conditions took a hit for the third quarter. the aussie is in focus ahead of the rba decision. they seem reluctant with commodity prices languishing. brent has fallen below 56 and wti falling .2% below the $51 a barrel mark. in the equity space, the japanese market. the bright spot, the nikkei 225 rising for a second day while the topics is snapping a two-day drop. here is a closer look at the nikkei. advantage leading gains, rising for a fifth straight day, the most since december 21, after

morgan stanley upgraded the stock to overweight. the rosier outlook from chipmakers is boding well frequent mapmakers. -- boding well for equipment makers. we do have another being upgraded. he's japan railway is writing the most since february 10. electric is rising for a fifth day, jumping to a record high. take a look at the bottom of the all mustys one losing percent, dropping after goldman sachs cut the stock to neutral and lowered its price target. pulling up the board to show you, a japanese ad agency known as adk, the stock is jumping. but there biggest shareholder, wtd, believes the bid is too low. we will see how that battle fares with pain watching that offer -- with bain watching that offer. betty: thank you so much. another mover, oil continuing to

aide after falling nearly month -- after falling the most in nearly a month overnight. just when oil entered this bull market, analysts say production actually rose. u.s. drillers added more rigs. when is crude going to catch a break? when is it going to get above its trendline? >> i would say crude has had a great summer. i think this is as good as it gets for oil. i am very much in the camp that oil will never sustainably rise. there is too much production to always come back online. we have seen signs recently. as oil prices have risen, we have seen production rise and more money going to expiration again, which shows that whenever oil prices do take up, there is more supply ready to come on board. i think it has been a great period foil balls, the best behind us -- great period for oil bulld, the best behind

us now. betty: what are using for global demand? mark: global growth is good. unfortunately the oil market since 2014 has been supply driven. there are clear signs it is coming back to balance the moment and demand has more impact on price, but short-term, whenever you get sustained pickup in prices that does lead to increase in share production and opec production. i think that means that when demand picks up, we do get spikes that can last for a month or so, but unlikely to lead to a sustained move higher in oil prices. yvonne: a lot of this rally has come with what has been going on with the dollar. what is your outlook for the greenback right now? the hedge fund seems to be doubtful we are going to get any tax reform and they don't think this rally can persist. mark: i have a lot of sympathy with that hedge fund be a. dollar is at a very binary point.

we are basically challenging the long-term downtrend line that came from 2017 highs in january. very binary points technically, so everyone is watching carefully this week. i fall into that camp where i am suspicious the dollar rally can sustain, based on the whole idea of tax reform. the tax reform, according to nearly all economists, is going to increase the budget deficit. that is not necessarily dollar negative. historically it has been dollar negative, not a dollar positive. i do think structural issues for the dollar remained. it has a current account deficit. the real yields are not particularly. strong at this binary point, if we do break much higher, there could be a technical search for a few weeks, but long-term i don't think -- i don't see the dollar bounce continuing beyond the year-end. yvonne: mark cudmore, thank you. for more commentary from mark, check out live go on your terminal to get the latest from mark and his colleagues.

you can get a market run down on one click. more analysis from bloomberg expert editors. ♪ betty: just ahead, china's golden week holiday is expected to bring a much-needed boost for macau's high-end gaming scene. we take a look at the numbers next. this is bloomberg. ♪

betty: this is "daybreak: asia." i'm betty liu in new york. yvonne: i'm yvonne man in hong kong. china's golden week is one of the busiest times of the year for macau. analysts say this year's holiday has the potential to generate more revenue for gaming companies than a year ago. let's bring in remy inocencio with three charts we should be watching. they are calling at the super golden week. can it live up to its name?

ramy: that is because there is next for one day, usually seven days, but it is eight days. first i want to talk about revenue and recovery. 1265. the white line is the revenue from a cow's gaming industry. you can see it is -- revenue from macau is gaming industry. it is hovering around levels not seen since late 2014, when xi jinping did pull the trigger on the crackdown on corruption. indexue line here is the of the bloomberg intelligence of macau as a whole. they are tracking very closely. september 2016 revenue, expecting to see up 16% year on year. for october especially we might expect that to go even higher. 8089, second shark, #btv taking a look at possibly some of the winners. those might be the u.s. casino

stocks. right here, a nice little fun, win for the win. take a look at where it has been since early august. that was august of 2016 when wynn resort launched the wynn palace. after that people decided to take more of a look and a gamble. the white line, macau gaming stocks, beating its peers. the yellow line is las vegas sands. in the second quarter of this year they got a better than expected bump in revenue because of something they opened in 2016. you might expect that people would head over to lot parisi and. finally, let's take a look at some of the losers. these are the australian casino stocks relative to its macau peers. white.eers are in these other colored lines are australian stocks, australian gambling stocks. ,n blue, you can see sky city

star also down, crown also down. the reason is because we are following the money trail. down for revenue for 2016 to 2017, sky city revenue down 7% year on year, star entertainment down 4% and ground down 10%. with ground, don't forget that late last year beijing obtained one of their staff in mainland china because of promotion of gambling. they stock as well as the other stocks have been taken a beating. we will see what happens over the course of the next several days. i guess we will be betting or maybe not betting on a very good outcome over the next several days. those are the three bloomberg chart you need to know. betty: hard not to place bets on that growth. thank you so much. casino revenue in macau, stronger than expected last month after the disruption by the typhoons in august. it does provide positive momentum as the world's largest

gambling help enters the golden -- gambling hub enters the golden week holiday. we discussed this with a managing partner ben rees. it is early, early days. but what are you expecting? what are you seeing so far? >> good morning, betty. what we are expecting is a very good month for october. compare with the same time last year, where wynn has already opened and we saw the casino, particularly the wynn palace, which had just newly opened, were struggling to fill their rooms. yet this year, the hotel rooms are booked probably about three rate ared the something like three times the normal going -- rate. so we expect a bumper season. betty: looks like a recovery.

you were the vp of casino marketing for venetian macau and others. it was interesting to see remy's smelled theg that winners are expected to be u.s. casino operators in macau. would you agree? cracks -- >> what we are seeing with the recovery is that the casino inrators who have dominated the vip segment have done well on the past six to 12 months. galaxy has taken over the lead from sands. when palace, which used to be number five, has surged to number three to share this third spot. sj has fallen back to the fifth spot. and bringing up the tale is mgm. yvonne: it has all been about these chinese visitors that led to this resurgence in macau. last year we saw the number of chinese visitors rose to 170,000. we are expecting 10% higher

roughly this year as well. this brings us back to the levels before president xi jinping's anticorruption campaign. do you think the worst is behind us. are we getting back to sustainable levels? >> we are getting back to the so-called normal level, but the normal level is different than wet it was in 2014, in that no longer have the super wales we used to, the ones who lose in the vicinity of 150 million dollars hong kong. we don't see them anymore. what we see is a huge basically middle segment of the vip segment and a longtail toward the bottom end. yvonne: i was going to ask you about that, because as ramy mentioned, we have the opening , studiopalace, parisian city. do you think these best good payoff for some of these casino operators?

the competition is getting quite fierce. >> you touch a favorite topic of mine. the so-called mass in macau is a bit of a conflagration between mass and the iv. , youl other jurisdictions don't have this thing in the middle. that is what casino operators have been talking about, but really it is the vip. if you take premier back into vip where they belong, it does not perform. yvonne: is that going to be a problem looking at 2018? we are going to see the likes of ngm -- mgm opening in january. they have to push back their opening of their casino because of the typhoon last month, august, i should say. this could be a big setback for some new operators. >> absolutely. mgm said they were going to build a mass property. look at win palace, they opened

with a property that has failed in the mass market. is going to suffer similar palace hasnd wynn not been able to motivate premier. describe what you mean between the premium mass and vip segment. >> so far as the macau government is concerned, they are two segments, mass and the iv. some analysts have talked about being aium mass resurgent class, but they are really nothing more than the i.b. who migrated -- more than vip who migrated downwards because of corruption and empty ostentation. there is no standard definition of premium mass. they could be a $1000 u.s. player, could be $1 million u.s. player. but the casino has labeled this premium mass in the hope that

u.s. traders won't get confused between mass, real mass, and premium mass. by the way, the margins on premium mass are approaching the levels of vip. but by calling it mass, they hope to give the traders impressions that it is actually as profitable. yvonne: before we let you go, i was going to talk about the chinese government. last month they were inflicting more scrutiny overseas into hotels, casinos, the like. do you think macau should be worried? >> no, in fact it is a good thing. as you have shown in the charts before, overseas jurisdictions, singapore, australia, vegas, their exposer to chinese business has dropped over the last 12 months and these people are coming back to macau. on the back of that, the chinese government has said they are going to stop chinese companies from investing in competing casinos outside macau, so it is

actually a good thing for macau. we have got the players and we are going to keep those players because there will be nowhere else for them to go. yvonne: great to have you, think so much, ben lee, i gimmicks managing partner. you can get a roundup of today's stories in today's edition of bloomberg daybreak. just go to dayb on your terminal or mobile and the bloomberg anywhere app. you can customize your settings so you only get news you care about. this is bloomberg. ♪

yvonne: this is "daybreak: asia ." i'm yvonne man in hong kong. betty: i'm betty liu in new york. a quick check of the latest business headlines. banks are ready to channel hundreds, possibly thousands of employees out of the u.k. for the brexit bill, expected to cost the equivalent of $500 billion area we are told costs are soaring as lenders find it more difficult to persuade staff to move abroad. a shortage of it experienced workers in dublin, paris, in frankfurt. sumitomo mitsui is said to have signed a lease in frankfurt, making it one of the first foreign banks to commit to germany. they say it is to take one floor of a building in the financial district and plans to put as many as 100 people there. the tower's website says each floor has about 1200 square

meters of office space. betty: goldman sachs asset management is during the list of firms playing to absorb the cost of third-party research after the use mifid ii regulations come into courts in january. the manager of more than $1 trillion in assets says it will pay for analysis used by european teams. mifid ii forces terms to separate the cost of research from trading related expenses. yvonne: with the mifid ii looming, hedge funds are concluding there is safety in numbers. smaller money managers are increasingly clubbing together on platforms to share the cost of the regulatory overhaul and get help with paperwork and legal compliance. or packages of applications and services a firm can tap into to lower administration costs. betty: the reserve bank of australia makes its latest decision on the cash rate later today. all economists surveyed by bloomberg expecting no change. let's get over to sydney and paul allen.

once again, we are going to be keeping our eye on the statement, not exactly what they are going to do. what are we likely to hear or see in the statement? paul: i suspect the september statement will be more informative. i expect we may be seeing a copy/paste job with the possible exception of the aussie dollar, which has weakened since the reserve bank of australia held his last meeting. theas been optimistic on global economy, france, and the labor market, the rba declining out -- pointing out that the decline in mining investment has run its course. the missing parts of the picture are still inflation and wages growth as well, completely missing in action despite the tightening labor market. phil lowe recently saying that the lifting interest rates globally did not have automatic applications for australia, so in terms of watching for tightening, don't hold your breath. yvonne: of course, another factor for the rba is not rushing to tighten his household

debt. are we likely to hear anything from the governor on that? paul: household debt at record levels when it comes to the ratio of disposable income, about 190%. this is heavy borrowing fueled in part by low rates, which has contributed to the house price boom. house prices always feature in the reserve bank of australia's statement. they have used off a bit. we had data on monday showing sydni with its first decline in house prices in 17 months, .1%, not much, but indicating days of rampant house price growth may be over. it was a week ago we had the assistant governor speaking. she said high levels of debt do leave households vulnerable to shocks when interest rates rise. that is likely to impact consumption, so that is something the reserve bank of australia is going to be taking into account. in terms of when we might see tightening, the rba saying nothing, but economists saying

it will not be until sometime next year. yvonne: two and a half hours away, that decision. paul allen, joining us live from sydney. that is almost it for us. time for a quick look at the next few hours. the rba meeting is going to be big, too. rishaad: looking at that and the open just over half an hour from hong kong after yesterday's blaze of equity markets. better at the open, who than the head of farmington equities in asia? he joins us in about 10 minutes. not just hong kong, but the wider spectrum, chinese reforms, the 19th party congress. he has also got some esoteric advice. ofave accused him on air working for the public relations department of the chinese government. but he has some very interesting thoughts and knows his stuff.

talking about the rate decision as well, national australia bank , david duke harris joining us from melbourne. no change expected, but what are they doing at the moment? according to some people, are australian leaders asleep at the wheel? i will be asking david about that. and andrew sullivan talk to us about wynn as well -- talk to us about mifid ii. you have been talking about that. yvonne: indirect links to asia. rishaad: all coming up. betty: a locked in, looking forward to it. that is it from "daybreak: asia ." "bloomberg markets." this is bloomberg. ♪ ♪

rishaad: 9:00 here in hong kong. is not about -- 9:00 in new york. i am rishaad salaam. this is bloomberg markets. ♪ the las vegas massacre was the deadliest shooting in modern u.s. history. had 20 guns, his motive remains a mystery. ls newairlines mul planes ui in the run-up to the 202011.