leader. -- one story dominates. optimismgs and growing lead asia-pacific higher. a record 17th straight today. upping $100 billion in value reaching its milestone 4 times faster than ample. -- apple. >> for the next hour, it will be critical as look at who will follow up on stage, who comes out first force of your because that'll be a huge clue to the success of xi jinping. >> about 45 minutes from now. we can speculate but no way of lowering until they make their way out to the stage. let us have a way of what it means for markets.

it is a bit of a selfless plug. a look at this chart that we have right here for you you the decision-making structure in china and how quickly the top line decisions are made and make their way down and permeate into global financial markets. if you do understand that this group coming out later in the mostay be offered important group of people for the global economy. mye in point of this was morning peas from bloomberg markets forward guidance is this taking out of excess capacity in places like steel, it has been a real priority. we are in a situation where producer prices are trading up a lot positive data whether g10 or g-v tv 15 72, follow that chart.

a lot of good fives recently coming is at that china is trying to rebalance a lot of the imbalances and it is stage run. this is another version of the chart. what are we looking at it? the dow jones overnight, it is over bought but a lot of earnings in the form of caterpillar. , putting that together with ppi and those are closely related. a look at the markets right now and more momentum coming through emphasis the china's markets opened up and a half avoid percent. and of course hong kong at a high. the other story we're following care and follows and move off in bond yields is you are getting the moves up on the 10 year in china area the highest level

since 2014. a bit of a breakdown. that short fixed income trading. when you look at the bond space, everything basically in red inl, look at a blip, a miss australia. the aussie dollar is standing up to the downside. over to japan, the other markets we are following. is the markets are getting a little too hot? yes, it is. it is the highest going back to 1986. it essentially shows you a portion of that index is also over bought. line and sense of top is a makeup here. i guess that is 17 straight days of gains. angie: absolutely. first word news.

>> thank you. senators trump met gop to encourage them to push ahead with tax reform plans. republicans crafting the planet has criticized the president for not being clear. corker in confident and corker said that the president is debasing the united states. opec is said to work with an exit plan. people familiar with the discussion said it is designed to improve the impact. the cartel is likely to endorse the strategy a missed a meeting next month -- of missed a meat a meeting next month. chancellor philip hammond has

dipped back from his previous demands alone try to continue as usual for two years. aey eu has long held that transitional accord can only be agreed as part of a final deal. saudi arabia has announced deals of bending half $1 trillion of tilting a new city. the project is called neom and will be built on the red seacoast. be anty is intended to innovation hub. overalian court hearings rate raking have been adjourned until monday. national australia bank asked for a pause to allow more talks with the regulators. the banks are accused of breaking the bank bill swap

rate. , i am news 24 hours a day paul allen in this is bloomberg. david: thank you. back to the capital because in the next hour or so, give our take 40 minutes, members of china's supreme, the leader will be named. the leadership reshuffle will submit president xi jinping's power. angie: who are the most likely contenders here? >> yeah, a couple of names are flagged ahead of this party congress. .ne is the party chief he was actually appointed but has been pledges loyalty to president xi. he is want to watch and the head ching and used to be

the head of propaganda. what we're looking at is to see whether or not these men or others may be teed up as potential successors to take over from president xi when he is expected to step down in 2022 or whether president xi will welcome to the red carpet with men and possibly one woman behind him who will be too old to take over. and waiting for those within the grouping,e smaller the last grouping of 25 under the standing committee to fight it out to improve themselves. we will see if it will stack it with performers or conservatives at how many of his allies will be there in how many of the allies all former leaders of premier li.

those are all the elements we will be watching. and as you said, it will be happening in a little under 45 minutes. comes back to the chinese president, cheating. -- xi jinping. we can speculate all we want of whether he will be stepping down. what is clear is how much power he will have beyond 2020. to talk about how much power he is to have likely moving forward? you he is right for in a position where he is unavailable for decades to go. person, anda influential part of the academic ecosystem here in china. imperialbed it as an political system created by president xi. what ever happens in terms of his successor, the charges

leader will have incredible influence for generations to come. that is going to drive many of the policies that he set into motion. we see he is embedded in it as well as xi jinping's also socialism and also the fact he is core to the party and the marketsve and the should play a decisive role in the allocation of resources. x foreign enterprises should be allowed access or greater to the chinese market. how those policies are enacted are where we will see the -- no proof is in the putting. -- the proof is in the pudding. and the people who will be driving the policy agenda will be key. angie: i thought it was interesting that xi jinping said the thought charter, i guess, really highlighted social inequality and highlighted the

need for quality growth versus the growth we have seen coming out of china. has it shifted now? it seems to be there has been a pivot and a consequential pivot. china'st that leadership have not told by problems around the environment and the pace of growth and the detrimental effects over the last few years. it is now enshrined in the charter. the fight against inequality is an equal priority to the growth agenda and that is the difference. there are a couple of takeaways. it will guide policy for at least five years. it will have an effect over some of the big corporate and if you are satisfactory and it will be key effects including potentially higher taxes if you are an industry and possibly

greater restrictions and a greater focus on welfare. with heard from the likes of , big corporate players in china saying they listen to what was said and taking the way what was put in the party and they would change their business strategy as a result of that as they did have a responsibility is businesses. that is a key shift. david: absolutely and we will be back in beijing later with tom mackenzie and also have in the speech of the chinese president and the announcement of the policy on bloomberg and that is expected in about 40 minutes or so. it is 11:45 a.m. in hong kong. continuing the countdown to the reshuffling of china and we will be discussing

about the new leaders' economic policy with helen qiao. david: and also before we head on to the unveiling professor hurns joins us later on. this is bloomberg. ♪

david: i am david english. angie: the latest headlines. facebook could face a new privacy regulations. the fight might be policed by authorities where a user is based. a lawyer at the eu court of justice said watchdogs may be able to take direct action when they suspect something illegal has taken place. launched aon has

prime membership service for businesses hoping to replicate success in the workplace. it is initially in the u.s. and germany. the company has spent between $510,000, and anger will bill. shares -- and anger will bill. annual bill. suspecting 6.5% to 7.5% growth. analysts were anticipating higher. [indiscernible] >> we just need execution.

to be doing the right to design and technology to enable software. david: we are about 30 minutes away before we head back to beijing, the chinese president presents the new ruling policy and a semantic his own place -- and cementing his own place. economist at bank of america merrill lynch pretty good morning. he is more powerful than ever. is there anything, how does it increase the economy? it wasn't like he was not powerful before. a couple of them. at the beginning of his first five-year term, people were expecting a lot from him. policylook at the

document of 50,000 words, a lot of that was based on the expectation that people were trying to see, what can you do? she had a good plan back and then. -- he had a good plan back then. especially for as a you reforms and deregulation act have probably only starting to see more action this year compared to 2014 or 2015. he is definitely much more powerful and has more consolidated to basically agree with him to push in the direction of where he sees things are going. angie: you look at the past five years and as you say, pro forma implementation is very -- reform and limitation is very thin. anticorruption and all the rest. how integral is that political base to really china's economy?

and the global economy? helen qiao: i would say at the time when there was an intertwined interest, it was probably quite difficult to promote special changes from as mixix ownership -- soe ownership perspective. i think this is much more difficult compared to 15 or 20 or 25 years ago when it they were starting to move things. right enough, there are so many interests that you probably have to make sure that you are very secure in the power base before you make a substantial changes. theuld say in terms of outside world, the perceived of what he has done in china, you have to say that probably more on at the political side and none of the economic implementation side. i would say going to the next

five-year term, there is much less used for focusing on something else first and now is the time we need to see the rolling up of the sleeves. david: one of the things that came out and we were discussing after the long speech he made last week was how he saw the role of state owned sector. it reminds me of back in the 1980's where you had 2 tracks. is that backsliding? how does that help china become what it wants to be? helen qiao: i think he was emphasizing the importance of the soe sector. and what the president would like to see is some of the soe, especially a few of them becoming a bigger and stronger number one and number two globally. i would say that's probably not necessarily a conflict where

there's more space for private sector to develop into and some 's would have to be reduced because of supply-side reform and leverage. he has made that quite clear. the supply-side reform and the deleveraging has not really been steered away from the soe's just because they are the loved ones. i think it's been very professional about it. angie: let us stick with this. helen qiao will stay with us as we continue to read the tea leaves. stay with us. more to discuss after the break. this is bloomberg. ♪

angie: i am angie lau. david: i am david ingles. angie: let us continue our conversation with helen qiao. wereh of the cameras

rolling through the commercial break up because of the conversation was flying about how political china truly is and i asked you whether or not we could in the same way the fed chair, somebody more dovish or hawkish, can we say the same about those in the standing committee? somebody is more of a hardliner or reformist? or are they of the same ill? think people over analyze the members and people probably fall into the camp of which faction is it from? you know, who do they represent? whose interests they represent? i think there are differences because of the age difference. their education, background, there could be a little bit of differences here and there. among the bureaucrats from outside of the world, everyone probably sees them as similarly.

there is a difference, people like -- who is a party of to beai and he seems someone who may potentially promote more reforms. something like that because of where he has been and where he has done. angie: to criticism about him. the free trade zone, that -- david: do we look at our track record? not so much when you look at the economics and saying he is best for the economy. do you look at the that or their track record? prioritizes social cohesion or market forces? does it matter? helen qiao: it really matters. what they have done and where they have then and the way they have been handling things i think he is an integral part of how we raise conclusions on let us say the leadership style

would be. i would say as the standing committee, it will be a different job compared to his party secretary or a certain deputy minister level before, this is a very different role. especially wants your at the end of committee, you will be us -- especially wants you are at -- especially once you are at the standing committee, you will be assigned a different role. angie: how much independence does every member have? can they say, chief japan, i do not agree with you? does it happen? helen qiao: i don't know, maybe a lot of discussions. the standing committee collective leadership style is a more recent. let us say only in the last 20

years or so increasingly there and consensus of cohesion the very top leadership body. the -- probably more coming from the top down whether from democratic debate among different colleagues. i wouldn't say right now because of the fact they are in charge of different areas off the political and economic and social part of the country, they probably would have a say. mr. -- is atcause the president of many groups right now, i would say the decision would come more towards him. david: and they meet weekly. angie: a business schedule. dave: we have to leave it there. appreciate your time. counted down to the unavailing and about 15 minutes. that was helen qiao of bank of america merrill lynch.

bloomberg subscribers, catch up on the interviews with our function tv and watch us live and die intoanything -- dive anything we talk about. this is bloomberg. ♪

adam --- >> i am paul paul allen. seniornnounces its most leadership later. it will guide china's courts four-year -- china's course for years to come. president xi has had his political palazzi -- policy inscribed. the aussie dollar tumbled after third-quarter inflation fell due to lower costs for fuel and vegetables. cpi rose 0.6% from the previous three months against estimates

of 0.8%. there is a willingness to tolerate weaker inflation. the u.s. is considering new sanctions on a myanmar after muslims fled to bangladesh which is called a crisis of epic proportions. it stopped short of backing a un description of ethnic cleansing. fromngton has been visits myanmar visitors. global news powered by more than 2700 journalists and analysts, this is bloomberg. on the market. asian stocks mostly higher. japanese shares looking at us 17 the day of gains. the events in the region is led by 0.7% and mainland to are

gaining ground on the policy bureau and i want to highlight what is happening and the chinese that market. 10 year yields are picking up at 2014 levels as china issued dollar bonus for the first time. and that has further contraction in yield premiums in state owned businesses. and a side effect have now more than 30 bits since june 13. they said it's time to take profit on 10 year while adding to a longer note and the potential for more spread compression. when it comes to the old economy, stuff could pop -- stocks could possibly underpin the next rally according to credit suisse. you can see that on the chart. the index of a buy another 13%

and an index which is loaded by soe's. the cmi china for this year could narrow the gap. [indiscernible] shares are up 1% this morning. david: very good story to follow as we head into the big unveiling. thank you for that. to china, i want to point out that that nikkei 225 is up and running in a lot of ways. a look at our bloomberg chart. 17 straight days. the prices and the measure of momentum. the last time this market was that overbought was when the was in themullets stable of men's hairstyle, 1986. angie: that is what we're talking about?

david: yeah. 17 straight days is not what you see for anything specially the nikkei 225. take a look at central-bank action and everybody is talking about tightening including they ecb meeting on a thursday and boj is the only guy oil has loved of the party in asking where did everybody go, a lot of expectations it will inflate equities as the japanese government continues to buy assets. but any case, very interesting move. also interesting, bitcoin is passing a milestone. ofnow has a market value $100 billion. it grew four times faster than apple. urgent need is no to regulate because of the currency is so low and it will activities that surround the must be stopped.

the exclusively to about the risks and potential for more money. means to separate of the cryptocurrency from the so thereg technology, are currencies on their own. we are to keep an open mind on it. and people see it merely as an investment vehicle that will rise and i think that is a rather misguided approach as a use for cryptocurrency. they can have potentially good applications in particular cases, depending on how they are used. it is not so much of that cryptocurrency's value, it is the application that are used. chipper, fast -- cheaper, faster, more efficient for migrant workers who send money back to their villages? if it is going through a block chain, could it to be benefits?

that should be the question of whether bitcoin is going up in value or not. haslinda: do you see a need to regulate given that there are murmurs that a singapore code been attractive place for -- given the lack of regulation here? jurisdictions regulate cryptocurrency. they have taken at the stands warmer -- that the risk regulation -- warrants regulation. what kind of regulation would be suitable? one example is the cryptocurrency intermediary we would expect the intermediary what have in place and time money-laundering controls. are quite often , wese for illicit purchases

do want to have anti-money regulation in place. occursnd of regulation around cryptocurrency. halfnda: you talked about a singapore done enough to an -- has singapore done enough to protect its regulation as an economic called -- economic hub? and also with regard to the likes of the case, has a singapore put in another measures in place to deal with that? >> it is a moving target and i think we have done a fair amount and we need to continue to do more on that front. i think as we become more successful as international financial, these risks will grow. our efforts have been a good, there have been some of mishaps

but that happens with virtually every center. have learned and tightened of supervision and risk management. haslinda: do you think of the reputation has been hurt by what it has been encountered? >> reputations and get hit when bad things happen. they also thrive on how you responded to bad things for some of the past instances you mentioned to hurt our reputation. i think in the the way we responded to it, i think it is not harmed our reputation since. is part of the monetary authority. david: we will head to beijing where it xi jinping plans to announce the very latest of the unveiling of what it will look like, if i may, and opulent diversion of the x factor.

it is much more than that one of those men make their way to center stage. this is bloomberg. ♪

david: i am david ingles. angie: i am angie lau. from is under attack greenlight capital which said at the company "puts dangerous products on the road." tesla is shorted. writing to shareholders, he said elon musk makes bold claims besides production shortfalls and feel the effects and recalls. tesla stocks have risen this year. david: a look at japan. shares of dna fell on the screen -- as you can see on the screen. pockets camp will build

available on ios and android in a december. launch for free and it had searched an anticipation it would come today. david: we are moments away from the naming of china's policy committee. let us bring in tom mackenzie into the conversation and he is us at thes, joining square. angie: there's a lot of name on the list but the one you mentioned right to be a woman who is she the why is this significant? significant?is is an outsider chart and would create a lot of excitement if it happened. she is a senior official.

and shea lot of clout has climbed the ranks. her chance of getting of the standing committee is slim but there is a chance. a group of 204 individuals revealed to us. she is want to watch and the likes of -- one we have been talking about and he is the party boss and close to a has become and hu closer to president xi. of the chinese economy, a significant profits, financially -- profits, financially. those are a couple of names to watch as our young, the vice premier currently for the next few minutes. he may be elevated to the

standing committee. he has been dealing with washington-beijing ties. that would be significant. he is seen as a reformer. we are looking to see how many of the members fall into the reformer camp and how many to the more conservative camp. sometimes it is difficult to get a cage -- get a gauge of president xi. -- hesed to be showing seems to be showing a mix of both in his speech. we will get more clarity. another person to look for is president xi's chief of staff. she is obsolete close to president xi and may be elevated to the standing committee. he is a conduit the 20 china's leader and vladimir putin. -- he is closee to president xi and may be elevated to the standing committee. as another name is a former professor and he is a chief the air rights are for the party th

izer for the party and is seen as a foreign affairs guru. are potential successors if he name successors. anyone board before the 1960's what really mark potentially, it would be a successor to president xi jinping. tom mackenzie stays with us and we are bringing you live bodyres of the 200 strong starting in the next five years. next to find out the successors going to be for chi jinping. joins us, andrns underwear professor at the university of hong kong. a professor at the

university of hong kong. as we wait, everybody becomes the communist manifesto in the china. let us start with the basics. this time yesterday, president xi's software internet and what does it mean? john burns: it is difficult to know what it means because of there are 14 items it is supposed to mean. the most important is the party is in control and it is leaving. there are a few other things as will as global china, china on global. there is a message on the economy. the economy will understand is unbalanced and will see more differences on the environment and maintaining growth. angie: i also thought what was interesting was addressing or highlighting the social inequality that exists in china and recognizing that as an issue. are we going to see more social programs, more social net?

: i think so. i think it is xi jinping's idea that there would be more of these things. he has emphasized poverty alleviation that china has made huge strides in this area and also emphasized the need for safety net. i would agree. david: in your view and we're extrapolating, after the economy evolves, the mental -- the middle income grows and get more imagine. i would doesn't china become a democracy at some point? what type of democracy would a communist party be willing to instill in terms of suffrage? terms ofs: in suffrage, it has to be one in which the chinese communist party is leading which is a

communist party maintains control. this is the single most important criteria. the party says it is already a democracy and by this they mean they rule in the interest of the people. you are talking about suffrage. you are talking about votes. this kind of thing i think in some ways off. they only have elections they know the outcome in advance. reliability is very important for this party. that is the kind of thing i would expect in the future. angie: something people in hong kong are familiar with her and let us boring the as you monitor alongside. --have been talking about something people in hong kong are familiar with. -- let us bring back tom mackenzie alongside. -- weber talking about perhaps -- we have been talking about

perhaps letting the market drive policy. are we going to get that? tom: within the framework of the party and within the framework where these reforms are enacted agenda, yes, we are going to get some reforms. probably not a major reforms that will really whip up in the agenda in the next few years, according to the analysts. we heard from the regulators that they do want to see a substantial increase in investment as far as foreign investment. they said there's been a lack of investment. they want to address some of the service by the european chambers of commerce and the u.s. chambers of commerce. the white house when it comes to access to some of the sectors but within the framework of the party only if it fits with the

grander policy. david: before i turn the moment away from walking of the standing committee and we should note that based on this viewpoint within the great hall of the inside are the people. we are looking at seven markers. it to remain a seven part two body. atop a policymaking body within china that me every week to -- meets every week to flesh out the major decisions. to these guys coming out, should we pay attention to the order in which is a walkout? : absolutely, we should. this is a system that leaves nothing to mistake. the first,otice hold second, third, fourth to the end.

angie: hold that thought because of they are walking god. showing no clear successes to xi . these are headlines crossing the bloomberg terminal right now as we look at who is walking out to applause. -- they are walking out. david: xi jinping. han have been named as of the seven members of the standing committee. and one, he has been named as the head of the cpc disciplinary committee that was currently headed at the moment. up.guy who is stepping that is what, we're saying there is no clear successor because he is 67 while , as you know and all the china watchers, 68 is it the

traditional retirement age. himeans it will not to be if we are going to adhere to those retirement guidelines. he will not to be in power by 2032. we were looking for members named to the bureau that are in a their 50's, -- in their 50's. the third man who followed xi jinping was shu. david coleman your reaction to the seven names -- david: your reaction to the saver names? is it an all boys club? john burns: it is predictable. the crowd has been prepared for the last two weeks. it is an all boys club. if it does not surprise me at all. -- it does not a surprise me at all. they're all in their 60's.

there is no successors in a here. there could be a successor some time mid term and that sometimes happens if the standing committee is reshuffled for some reason. it has happened before. xi could identify his successor sometime later. david coleman to recap some of the names before they walk out on stage. xi jinping. david: tumor caps on the names before they walk out on stage. correctly a vice premier. -- to recap the names before they walk out on stage. and currently the party secretary of shanghai. some of these names coming through. words, the seven names from the previous version and a xi jinping remain and do have

five new games as well. mackenzie.g in tom -- five new names as well. your thoughts, reactions? tom: the surprise is it was pretty much right on. that one person would be stepping down and we had it happen and the speculation this would be the standing committee and it has come to pass. we do not have a clear successor as part of the standing committee to take over for president xi. we do have some people very close to him throughout his career. as you have said, people like a keyief of staff and liaison between president xi and vladimir putin of russia.

and one person we talking about, a vice premier, on the standing committee and played a crucial role in the trade atolls between washington and beijing. some investors had seen his elevation as a positive because he is seen as a trusted hand on this relationship. in terms although former party boss -- not a big surprise. not a big surprise from shanghai. i will get back to you. angie: those remarks about to tom, as they are about to make the remarks. this is very interesting for everyone. the names that have then talked potential successors, they are not in the standing

committee. they are among members of the bureau except there on the wider bureau. very quickly before it xi jinping makes his remarks, how significant is it? john burns: they could still succeed xi and it depends on how things move forward in the next five years. list of appointees and i would say it is xi risk-averse in the problem he had -- heard they are about to come out. there you go. you're standing committee of the policy. -- you're standing committee.

angie: there they are. men of the standing committee. xi jinping and the man at the to anyno apparent nod successor as every man on stage is close to retirement age and here is xi jinping. his about to make his remorse. >> legs and gentlemen, comrades, friends, good morning. in the 19th congress

of china was completed and this friends themany from the press and from far away. have donend that you lots of work to report to the , so you weren't really reports have attracted a lot of attention and i would like to say thank you. >> with many of you coming from

afar. you up worked very hard and your media coverage has captured the attention of the world. i wanted to say a big thank you. >> the committee, congress, and 50 name parties and from the leaders and and the future expressed our heartfelt friendship.

>> all 52 major political parties and 165 countries have spent 855 messages of congratulations. of these, 814 came from heads of state or government or the leaders of political parties or important organizations. on behalf of the cpc central committee, i wish to convey our appreciation to them all. the 19thow, first of congress, we elected the middle leadership -- we elected the new leadership of china and i will elect again to keep with the general secretary which is great to me and the encouragement to

me. committeeh central and elect a new central leadership. i will relet general >> i see this as encouragement for my work and that will spur me on. >> now i would like to introduce to you the other six members who have also been elected to the standing committee of the political bureau.