♪[music] >> chinese markets rattled by the slump. traders are accustomed to this, severe.ses get too >> and beijing may turn up the digital microlenders. >> the property here in australia, the ballooning housing market has become the biggest in the developed world. >> and angry birds is angry at they call brutally disappointing earnings. the stock took a dive in new york.

>> angry birds, indeed. sydney, where it's just past 9 a.m., this is daybreak. friday, everyone! >> ah, thank you. it's just past 6 a.m. here in kong. i think betty is probably into second or third thanksgiving course right now, so i'm thankful to be filling in with on "bloomberg daybreak" this morning. also want to wish a happy ourksgiving to all of viewers globally, of course. what a day yesterday! it's been pretty quiet out it really is china, front and center. take a look at my terminal here. rout,tarted as a bond spreading onto stocks right now. the 10-year government bond yield, that sent them tumbling. in 17 months. i think it's still too early to

tell. feels like 2015-16 all over again. but when you see a cell off can't help butu get flashbacks. >> absolutely. of the boom bust of 2015 certainly looms large for a that verywho remember vividly. but i was just talking to adam. 3% was like a really stable low volatility day when it comes to chinese markets, so we've come a long the support of chinese stocks are getting. but that is going to be our top into the asian open. but taking a look at how we are faring, we do have new zealand, where trading is under way. we saw the u.s. dollar continue to decline. we've got new zealand trading up about half a percent at a moment. australia, shaping up like this. quite a bit of positivity as we get at least japan coming back

online. that should give it momentum, aboutdney futures down by 1/10 of 1%. we're watching out for the and industrial companies, given we had that rally overnight. you up-to-date. linda is in singapore. >> good morning. president trump used a thanksgiving address to the military to take credit for abroad. in fighting and to warn that america's allies could become the enemy. the campaign, he had said u.s. engagement in afghanistan time.aq was a waste of now he claims his policies have turned things around. theyso told soldiers that would come home to a good fatomy, new jobs and big beautiful tax cuts. germany is a step closer to a government with the biggest opposition party ready to begin talks. and the spd were initially wary of renewing the

so-called grand coalition with chancellor merkel, after voters punished them at the inconclusive election. merkel is struggling to form a thernment and talks with free democrats and the greens fell apart over the weekend. catalan separatists are considering dropping their declaration of independence in return for a negotiated deal with spain. the claim could be omitted from manifesto if madrid agrees to hold talks as equals. elections,olds new imposed by spain. claims thatrejected workers have been abused at two factories in vietnam. study by a global group documents a series of alleged health and labor violations. they say some workers, including pregnant women, were required to for their entire shifts or cut.a pay

they claim to have interviewed 45 female staff at two factories. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ >> thank you. our top story here this morning. has rattled the market. it has grown accustomed to state tooort when losses become severe. let's bring in steven. we also want to bring in adam, marketsmberg global editor, joining us live from sydney. to give more context to this, with you.'s start off is this the start of some type of market meltdown, reminiscent of 2015-16? >> yes. you and i covered that closely, it fell in july of 2015. the run-up was fast as well. what the authorities like to see is a slow bull run, right? sharp gains like we've seen, with the liquor maker,

singled outrse was by authorities and it has had a fall.llion market cap wiped out. forstill up 90%, on pace its best performance in a decade. so there's still a lot of heat in the market. yesterday's fell-off, if profit taking turned into an afternoon stampede, adam will talk about what he sees there. really a longer term, you know, fall? is this going to lead to that? we saw is bond yields climbing to the highest in three de-leveraging campaign is intensifying. and we need to watch for contagion as well. the csi300 was down. in hong kong, it was down 1% yesterday. shares down 1.85%. 2015, the hsi plunged about 30% when the chinese markets plummeted.

>> and we haven't seen any of that yet. to thes to be isolated chinese markets so far. but the level of margin trading, what does this tell us about the a bubble?of >> well, let's go into the bloomberg terminal. of margin the level trading in china, because in everyone was getting a brokerage account and borrowing. run-up, nowhere near what we've seen there, june and crackdown on, you know, excessive borrowing to buy into stocks. on the right is where we are now. it doesn't seem like it's high, but what it's done, it's up six straight months now. so we're starting to see, with the bull run and the bubble in the stock -- i'm not calling it a bubble, but the inflated stock prices, more people are starting borrow. that's really where the authorities are cracking down on. they want to crack down on this overleverage. >> we were talking about the sell-off. into therated late

day. what does that suggest? >> well, i think as we've been alluding to, people have become accustomed, often in the chinese and domestic, local investors particularly, that the state does come in and bit of backup in times of severe selloffs like we were seeing yesterday. what happened during the afternoon and how those losses accelerated through the afternoon, they were some of the biggest afternoon losses that we've seen since back in january 2016. which is obviously very significant, and the fact that didn't see, you know, the so-called national team and the behindties getting equities and coming in to buy does tell us something about perhaps, as we were saying there with the margin debt just having slowly rampg -- ramping up. this may be a sign from the authorities, wanting to flush out a bit of this exuberance from the markets. some ofbeen alluding to

those factors, in some of the pieces that have been coming out in the press. so-called plunge protection, that really predictable trading pattern. does this fit into this question of how they're going to deal this, across both management and other asset products? is this kind of playing into question of how much pain they are willing to tolerate in lesson? teach a >> absolutely. i think it's a very difficult thing for them, isn't it? it's a real challenge and how far they want to go one way or another and how much, you know, pain they're willing to allow people in their markets to know.ence, you it goes some way to suggest that maybe we're in for a period where they may be allowing a little bit more pain. isolatedally was just to thursday so far. let's have a look at what trading.n friday if we do get any kind of rallying and buying momentum coming back in, then that might

tell us something significant. >> we've had a fair number of about a overallsense down on things, s&p calling that a game change. adding tothis kind of a sense of skittishness when it comes to sentiment? >> absolutely it is, of course. the latest is this report that basically purge the 157 or so online microlenders and just leave it to the license holders such as the big the big internet like alibaba. there's a lot of them in the pipeline to go ipo in new york as well. go ipore gearing up to from china. we've already seen new york

listed qd, the stockholder in the united states, down 16% 41% just since november 10. so that is pummeling. also, ppdf is the stock code, down 24%, just overnight, down 37% this week alone. so absolutely. these are being pummeled. seeing is a massive -- if this report is true, from a state business be aaper, this would massive escalation of earlier crackdowns and more regulation burgeoning sector. this is a sector that has about $152 billion of outstanding lending. this, again, is falling into the following the -- mercilessly on overleveraging. >> usually in these kind of in 2015-16, you usually see some type of leakage the of this, maybe developed markets as well. why are we not seeing it this time around?

>> well, of course. we're in a period of the week, and as we get toward the end of where we've got the u.s. thanksgiving holiday. so, of course, u.s. markets closed, stock markets close. no treasuries trading at all. but in this part of the world, see some spillover into the china enterprises index, which had a decent fall. they are chinese companie compat traded in hong kong. but we haven't seen it spread to any other developed markets. as i said, japan was closed as well yesterday. the japan stock market reopened again today. with all trading kind of coming back online on friday, it will a moderate session. for the u.s., it was just kind of a half day, going into the weekend. still, we may see some signs of that happening. say, stillnt, as you relatively contained to china main land itself. are we expecting from the bond market volatility? we've had a big

move and we've had the movenment bond market significantly. we have seen a 30 bases point bondin the corporate martin just since the -- bond market just since the start of this month. those moves have happened. whether or not we get any further pronounced moves is kind of a moot point. but, you know, going into year and with kind of volatility window dressing around funds wanting to shape their exposure take anykind of not additional risks, that leads to the potential for a bit more volatility. >> all right. more to come. in hong kong, our chief north asia correspondent. later, we'll be speak to young about why they say aren't readyrms for any kind of uber style hack attack. is bloomberg. ♪

>> i'm in sydney. >> and i'm in hong kong. watching "bloomberg daybreak." we've been talking about, worst on-day fall in 17 months thursday. to statetraders used support when losses get too severe. with thek into this jpmorgan asset manager. back, also joining into our conversation from sydney. understand what's driving this sell-off in equities in china at the moment. of course, we've been talking in bond ishis rout spreading to stocks now. but how much is it also due to that we're getting to the year end? they're taking money off the table. >> i think there's actually quite a lot to do with that. we saw the market dip the last weeks.of i think it's largely driven by sentiment. people are looking at the

outlooks into year ends. we used to expect a rally. maybe this year we don't get it. all that good buildup come through in october. from central banks. have that, and they're taking a little bit of profit as they move into year end. to china, i think it's sentiment. some of the changes that are around regulations that are really driven to try and shore up the financial system. surprise.d come as no the chinese authorities have been clear about they want to financialprove the system, so i expect more of this kind of action. if you differentiate long term is a case term, this of a lot of short term pain. in the long term, it should lead sustainable economy in comien and lift -- in china and lift risk in the future. >> it's not just the china leveraging, but it's quite rare see state media also target specific stocks as well. mean, what do you think comes micromanaging?

does this actually give an opportunity for strategists like now?o actually buy in >> i don't think we'd obviously thatto see too much of microtrading. it becomes more of a problem, think the volatility that has been missing from markets opportunity for investors to get into the chinese market. more through the different they haveograms there, the announcements to allow companies to buy into more of asset management, for example. up the doorsping more. it becomes a more attractive opportunity, just given the size of the martin and the available -- the size of the market and the opportunities available. broadly intore global equities, what do you think will drive the next leg of it's aly, given that

fairly widely held assumption that they are fairly and earnings are going to keep powering on? key.ll, that's the earnings growth is the whole thing. across the board, they're pretty developedacross markets. but they're not really excessive for where we are in the cycle. that's the key, that the earnings force can depend on these. of them moveome sideways, because prices have gone up. the over the sort of one year period, that valuation argument the thing that's going to trigger it. i think it's going to be more sentiment, inflation, or bond yields spiking high, makes that relative stock-bond relationship look a little more tough. really goodome economic data come out. sawu.s., last week, we

p.m.i.'s from europe be very strong overnight. starts toonomic data fade or signals that nominal we do is not holding up, start to wonder. earningsmentally, the growth is still there and it's still predicted to be there. definitely favor it. equities over bonds. >> carey, any sort of gains that have been incremental, given that you are hearing that a lot almost fully invested at the moment? of people still have large amounts of cash. mean thatat does there is room for that cash to be allocated. have $600 billion in deposits in australia. crazy. elevated level, but it does mean, i think, people have been very slow to growth assets.

it's been a very elongated recovery around the world. things thatof the means it can keep moving higher or at least not decline, the verythat people have been slow and that exuberance really hasn't been there to a certain extent. a reallocation around the world in terms of where that risk is, away from japan,., into europe and that is an indication around the world. perspective,alian the weakness we expect in the up thedollar opens better returns from global equity markets. reason to says no that people will stop allocating to equities over the coming year, but you're absolutely right. this year, 2017, has seen some expecteder than returns. and so we wouldn't expect that to be repeated in 2018. expectno means would we it to be a die year. theext year, what are potential factors that could derail this global rally? it inflation emerging much

quicker than anticipated, or is a bit of a messy transition at the fed? definitely a policy era across central banks governments, whether it's what's happening in china or the transition in the federal markets'r even the interpretation of that transition. theou look at bond pricing, three rate hikes that the fed is saying they're going to do next year, we know that the composition of the federal is going to change. janet yellen is obviously not going to be there. that leaves four open spots to be filled for the voting members. and therefore, you know, we more about that becoming centrist, even hawkish. fiscal stimulus, a tax plan that adds to great, inflation,es more and in the u.s. as well, you see a more hawkish thing. it's become a little more omp we -- amplified when

we start to add valuations. some worry about where these markets are going. that just amplifies any volatility that may come through 2018. >> where in emerging markets are you still finding value? of the leadinge performers this year in terms of equities. are you still finding value in equity markets, in emerging markets? >> absolutely. right. you're the valuation signal here is not as strong as it was if we look broad index. it's up, average for the long term. not asuation signal is strong but it definitely can go much higher. we know that value cases can valuations can move well above average and stay there for a long time. we think about asia's position within the supply change. it does really go down to a bit story.mestic demand

as long as we see the developed markets growing at a decent pace, then obviously that feeds in terms of see growth for emerging markets as well, again thinking about those trade numbers that have been so good this year. it's a way of saying that 30-odd of those markets around asia is not going to be repeated. think about country-specific allocations, thinking about some of the in bank stocks and perhaps thinking about some of those relative valuation trade-offs. >> carey, we appreciate your time. management,et global market strategist. alwaysorget, you can find in-depth analysis on bloomberg radio. day break asia. you can also download the app, plus, or access bloombergradio.com.

>> a quick check on the latest headlines. volkswagen is stepping up its search for long-term supplies of metals and batteries to power electric cars. it will include transparency compliance. cobalt's ability to conduct electricity has made it a central part of rechargeable batteries. most supplies come from the democratic republic of congo. >> they have applied for stores ino open india. they want to operate under the globe brand. last month, last retailing that international sales would exceed those in japan this fiscal year. international store count cut those at home two years ago. party may soon be over

for australia's red-hot housing market. we'll assess how bad the hangover might turn out to be. ♪

>> sydney markets open in just 30 minutes time. we are seeing a little bit of a into the trading day. sydney futures down by just about 1/10 of 1%. beautiful day in sydney. >> it is beautiful! happy friday to you, heidi. daybreaktching australia. let's get the news now. slump in chinese large caps has rattled the market to stateown accustomed support when losses become severe. csi 300 index sank 52 points in the final minutes of trading. the steepest decline since 2016.

the index had climbed 28% this year to the highest level since july 2015. rising for six straight months. beijing may be planning a new crack down on crash micro-- cash microlenders. international financial news says the online's 157 microlenders will be purged, biggestonly the internet companies with licenses. that could dash many's hopes. u.k. is being warned it's on inrse for the longest fall living standards since regards began 60 years ago. they say the budget, the economy will be 42 billion billion dollars smaller in 2022 then the government predicted the march. wages won'tid return to prefinancial levels

2025, onceast inflation is taken into account. is saying household borrowing in developing increasingoses an threat to growth. korea, canada, and the u.k. lead the world in private borrowing the organization says while it doesn't necessarily imply problems, it doesn't increase volubility. it adds that debt and credit are among issues that downturn.ger a global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. >> china has labeled australian south chinaut the sea irresponsible. they are concerned, after an policy whitereign paper learned about china's military expansion in the region. in our bureau chief.

this is the first white paper seen in more than a decade from australia. it? got china upset about >> that's right. good morning. it was australia's first rearticulation of its foreign policy framework in 14 years. it was released by the prime minister. and the foreign minister. gottenpears to have china upset was australia's rearticulation of its long-held opposition to any militarization the south china sea, in particular the reclaiming of artificialilding outposts on reefs. now, australia also urged the and to remain engaged committed to the region and said that any withdrawal from the trump administration could see that balance of power shift toward beijing. nothing really new in this policy framework. trod thathas long

tightrope with the u.s. and china, its biggest partner. >> the stage of queensland, tomorrow, the polls, is there going to be a sense of returning to that same kind of populism? >> very much so. polls are indicating that neither the labor party, which premier, nor state national opposition, led by tim nichols, are going to outright majority. that could leave the one nation on an which is standing anti-muslim immigration ticket. that could leave one nation maker. the king >> that's quite a revival for the party. >> it is. pauline hanson is well-known in australian political circles. rattling the political scene here from the

years. for about 20 the party quickly imploded, and in the political world for a while. she made a comeback last year, theing four seats in federal parliament. this time, turning her attention anti-muslim an immigration agenda. be ahis could really breakthrough for her, in her home state of queensland. it could be quite a turn, if she does end up playing this potentiallyole and helping to determine which of the two major parties wins office. weekend. watch this ed, thank you so much. our sydney bureau chief. the party may finally be ending australianes to property investors. market has swelled.

bloomberg's australia economy editor now joining us to talk a bit more about the implications. this is kind of a huge part of now.conomy >> it is. i mean, finally australia is something. world in unfortunately, it happens to be the bloated size of the housing market. the sizeid, four times of our gross domestic product. why is that? well, there's been a combination of reasons. australia has a national property, fueled along by low interest rates. banks are very eager to lend, especially to investors. and also, it's just part of the national psyche. have these prime time t.v. shows on every night renovators like sporting heros. >> and also... generous tax breaks. forget australia has actually had a recession. we just kept on going. the housing markets in the u.s. and u.k. managed to flush out

many things. they had -- we've just kind of kept on going with maybe slight corrections along the way. >> and is the rba concerned about this? seems like they think the banks have the buffers to really kind of deal with any kind of downturn. the big question is, when it to consumers, at a time when household debt is high and wage growth is not strong enough to really service that debt. >> yes. they are really concerned. typicallye understated fashion. every time they release a statement, they mention debt.old and without fail. and that should ring alarm coming fromially them. i think, as you say, consumers lotpending, they've got a of debt. retail sales have been pretty grim lately. that's keeping the load on inflation. as the governor said this week, speech in sydney, our interest rates basically aren't going anywhere. sense oflmost that thee is a large portion of

investor community that think that the rba won't let things point of somehe sort of implosion in the property market. >> this is that kind of maybe a of security. nobody -- let's make it clear. nobody is saying that we're at the stage of a u.s. subprime crisis or anything like that. >> certainly not in the big cities. i'd imagine we'd see the pain more on the fringes. >> definitely. more so with mortgage stress, west of australia, where the mining boom has left a lot of end of the mining boom. but no, we're not seeing that damage yet. but -- and no one is saying that there's going to be a crash or anything. are there,ning signs as we show in our story today. we just wanted to crunch the that the housing boom is coming off. those numbers are pretty big. the micro measures

working? to have anseemed effect. national house prices flat lined. and the rba has come down quite heavily on interest only don'tges where people even have to pay off part of their principal for maybe a few years. they've come down pretty hard on that with bank regulations. seem to be having an effect. so we'll see. we'll see it in the months to come, i suppose. >> thank you so much. news's economy editor for australia. let's get a quick check on the markets. course, not much of a handover at all globally with the u.s. off for thanksgiving. new zealand, we're seeing outside of 3/10 of 1%. dollar indexe u.s. extending those declines. the aussie dollar at 76.29 after

at the highest. we did see that pickup yesterday, which is fading into sentiment, although it's coming fading, the sort of appeal. the investors head more towards other currencies. up next, after a rash of high-profile data breaches in 2017, of course the most latest being uber, we'll be speaking to whober security expert believes that aussie businesses are flying blind. bloomberg. ♪

>> i'm in hong kong. >> and i'm in sydney. daybreaktching australia. our struggling groups slumped after it was said to ask creditors to agree to a unified debtnse to its imposed

restructuring. they held talks in london about revolving credit facility. inwell as three bonds due 2018. exchangehoping to current debt for new maturities take a being forced to haircut. >> the company behind angry birds lost almost a quarter of its value after earnings describe a brutal disappointment. lastspent $26 million quarter to attract new gamers. that's four times what was invested a year ago. it hurt profitability. earnings before interest and 29%. fell was halved to 6.8%. >> the u.k. government says the the personalosed information of british users and it will report on the scale of days.each in the coming the digital minister has from uber.swers they first reported that they

concealkers $100,000 to the hack. hancock did not rule out any further action. chinesen online lender on claimsin new york that mainland police are investigating a data leak. officials areold .ooking at allegations o our sources say that the may not lead to action against them. >> our next guest says many are flying blind when it comes to security risk. have launched their global information the security survey. he joins us here now. you. to have in the wake of equifax and the wake of uber being the latest, thedo businesses around world, i guess, compare, particularly when it comes to what you're seeing as trends in australia? >> as you say, our global

information security survey released this week. reveals only 8% of organizations are really taking into account cyber risks when setting their strategies. that means they're embarking on digitalizationud and not fully taking account of what could happen from a cyber view.of >> and why is that of interest? that it's nott of likely to happen, so they're not going to put money into it right now? >> that's right. many organizations are waiting on thistacked, to spend topic. 80% of people said they needed significantly more budget but thought they would get it, unless they were attacked. hardy?hat pretty fool particularly as you see the fallout being much harder to hascome once something already happened? >> that's right. i think it shows a level of complacency, but also the difficulty of making the case for investment. it is very difficult to spend a lot of money on something if you think you're not going to be

attacked. most people will suffer an incident, therefore you're get on the front foot. >> there's a lot of cases now that we continue to hear about, companies paying hush money to some of these hackers as well. and i kind of understand why. most companies would think paying off hackers is perhaps cheaper than dealing with the a full breach itself, let alone paying fines. type ofthe risk in this thinking? >> well, i think the uber incident that was revealed this week demonstrates clearly the risks. anddwide, there's debate discussion about uber and you really want to try and avoid that. youink what can distinguish is how you handle a cyber incident. i think people recognize now that everyone is going to suffer sort of incident, so if you can handle it well, then you'll of your customers. organizations have actually got a communications plan in the event of a data breach. customers to really think about what would you do if

it happened to you, and get your plan together now. >> what are the options now, richard? we had a guest saying passwords are dead now, after the case of wannacry. self-regulating no longer working? >> i mean, i think that the fundamentals are still very important. and as you rightly say, if you was at wannacry, that caused by really people clicking unleash ransomware. if you look at uber, that appears to be passwords that used toclosed and access confidential information. they can go a long way by just basics in place, changing passwords often, encrypting data and having an instant response plan, because if you can contain something, a lot better. >> how does asia stack up to the rest of the world when it comes into cyberestment

security? are we still relatively, you know, at the top? >> no. is clearlyt the u.s. at the top. that's really because it's been regulation and other initiatives that have been in place for some years now. gettinge, we're regulation that will sweep through asia this year, around mandatory breach notification the european-based legislation, the general data regulations come into effect in may. that will affect a lot of businesses in asia. that deal with european customers. and the fines are substantial, don't comply. i think with a mixture of regulation and greater awareness, at the executive management level, we'll see asia beginning to catch up with where the u.s. is. >> interesting. had a guest that said it was the other way around, that states like --

singapore are actually leading the pack right now. time.eciate your lead partner, talking to us live from sydney. a roundup of the stories that you need to know in daybreak.ition of it's also available on your bloombergh the anywhere app. you can customize your settings so you only get the news on the that yous and assets care about. this is bloomberg. ♪

>> well, account is it a bird,a is it a drone? a chinese start-up thinks it's got to solution to travel wars. they are accelerating plans to taxis next year. bloomberg had exclusive access its factory and testing grounds where they are raising

money to start mass production. your dailygery of commute could be a thing of the past, if the makers of this taxi drone get their way. chinese start-up plans to build network of passen injury around the world. >> we are just waiting for our trial flight permits. >> where do you see the biggest growth opportunity? thet the commercial drones, consumeconsumer drones? commercial.y the if you look at the world, we are only at the beginning stages of the real large scale use of drones, especially passenger drones, represented by our 184 series. our company has just shifted our focus from technology to the side of the business this year, as we see huge

opportunities in the global market. biggest challenge for drone makers the regulatory environment? number onell the obstacle? >> the civil aviation the uae and china have given us the green light for drone testing. and many the u.s. other places, all the policy makers have put us in the very closelyng with us every day on regulations. this is already very unusual. >> is china your prime focus in terms of the market, or are you overseas as well for sales? is indeedrseas market bigger than the chinese market in terms of purchasing ability. wayver, we are making our in china. for example, we've signed deals governments and helped them build two control centers for them to use our drones extensively. we've seen huge changes in our than half of our revenue came from commercial

deals in china this year. our passenger drones to bring us much more income next year. $1have already secured a $# billion order from an american strategicd formed a partnership. the passenger drone will become a star in 2018. >> you receive $52 million in funding. are you still looking for are you fully funded at this point? kick off funding, charging $300 million u.s. we start mass production of our passenger drones at the beginning of next year. we also plan to install fully automated production lines in 2018. furthermore, we will sign deals arabia, singapore and several european sites where we will need funding to support drone testing. >> they are putting their fleet of delivery drones. regulators give the start-up the green light, it is

another service they hope will take off. >> isn't that the perfect way to get a cup of coffee in the morning? how i want things to be delivered to me as well. our correspondent there. guessing taxi drones or even drones in general future here when it comes to things you can buy online. very much, of course in the news today. we have amazon, of course, doors in australia as well. it's interesting. new research suggesting that electronic retailers are the ones who should be worried about amazon's arrival. closely followed by clothing, cosmetics.ell as let's bring up that chart to see what are the top five things buying down under. it's more about cosmetics and bath.apparel, shoes, bed, and we spoke to more than 1,000

shopping about their preferences. have a feeling you're going to get in on this too. >> absolutely. look, the big ticket items, you and things like that, people are still going to want to go and look at it in real life. these smaller household appliances, jewelry, clothes, shoes, i think we do a that stuff online anyway, right? it's going to mean a bit of a to thewhen it comes competition landscape, some of these australian retailers, who to playing in a pretty small market. >> hopefully they can get their get itto work, to delivered to your house as well. in thely a lot going on retail sector. we'llk more about that, be joined in the next hour by our special guest. >> yes. >> come on! [laughter] >> look up here.

sell-off the china obviously at the front and center here as well. s&p talking about the credit problems that china is facing as well. a game changer, is what you're saying. of stickingsort point is they're taking away a torce of financing here due banks -- does it appear obviously on book and do they refinance? cliff will also be coming on the show to essentially talk about this will -- is there a potential that we see the spread beyond hong kong? because you look at the 2015 version of the dark days. as much.ite get us out are we getting there? we'll see. >> heidi? >> looking forward to it. oh, it is friday, isn't it? going to be a great couple of with david and yvonne, of course, as the u.s. is off for

thanksgiving. kind of almost in a holiday state of mind here, it seems. yvonne is next. this is bloomberg.

>> 7 a.m. here in hong kong. we're live from bloomberg's asian headquarters. >> welcome! to daybreak asia. top stories this friday. from a day's break with equities set to decline in tokyo. most attention will be on china after thursday's sharp sell-off. >> beijing may turn up the heat on digital microlenders as well reduce risk in the financial services sector. for asumers gearing up black friday sales explosion. answer tona's congestion is take it to the skies! onhave a special report drone taxis.