. >> good morning, major markets just opened for trade. >> good evening from bloomberg's headquarters. welcome. hong kong, in tuesday, technology general, apple supply under ressure today, reports of eakening demand for i've ones and investors looking at the list s they prepare to

.heir online units .>> and vice president pence asia stocks under pressure we saw, his session as wall street just fall with the u.s. markets. oeeing the worst day in over tw weeks, let's see how asian markets are looking in early trade. so? >> asian stocks are inheriting aul waul off on sw street. we're seeing declines above 1% indexes and the shares weeks ding most in three of financial and tech shares and 50 heading lower as well. and we're seeing futures now ge and we do have a

dollar high and the yen is looking steady after costing $1.14 overnight. now, the yen demand remains strong but the eurobears watching after hitting a tally faces as it a budget deadline with the eu. keeping an eye on crude as well, wti continuing a o cord slide on saudi's plan t cut outs with our future ves noting josh gra equities and oil are falling in wek step and on agenda today have 33 summit due to take off in singapore. u.s. vice president pence attending in trump's stead this, s after his japan stop this morning. we're keeping nd auto tech apanese under reports that are car imports.

>> so, this u.s. stock behind this apple demand story fell almost what? 32% does that mean supplies well?g to suffer today as pressure to cting continue and after boosting perating losses for a second quarter causes a down grade can display. and for that company, local galaxy s 10 ng the ased in an may be rele february and when it comes to watch and this worse time come at a but

but. >> they're on market joining us from kinga pore is head of economics and economy. i understand they have a lot to contend with, but taking a look at the economic data coming through, thing is that they're bad.that >> we get in the place where oil ng off.are falli this is knocking on energy counters. that is s,

leading to people, fears of more when also, t a time the reduction is drawing under pressure across. and i think markets will be a risks e if taking more arder.ocking it h >> what is your assumption on whether or not this takes another leg worse in the beginning of next year? between e something washington and beijing. i think is going to need a cross over into next year to see whether there are chances for 25%.hiked to resident trump p

and next up for terrorists as well. rogress now that there is are out and bit of a baro meter. we've got a crude price as well so in this environment hedging pressures. functional to give and it's to spread for

that is for on and looking at the from u.s. trade ares failing is where those up to. g a breather, we ave expected to be encouraging asiana effects. seeing could have gentler supply so that

dynamic is going to create worries about selloff and there release so for the reveal itself as a positive outcome. it's, i think markets will be selloff and i he it's additions will be the real worry point. k about the oil situation and how much is a oil side and how much is demand side. there is increasing worries about china's fluttering growth idea 'll have a better when we get indicators this week. of what they might do

next. the last time they touched this was in october. which cast are you in? >> i'll be be in the boring camp that stick was a one year lending rate but i think every ion a lot of times, one area was not as indicated ofause there is a full reach and effective funding here being previewede a more ysfunction is to o level pushing banks not make it a er perspective on the ground.

impact we're the seeing that effect as we keep talking about supply chains and how intertwined it may seem to markets.ched the market dynamics is a trade ns next year? >> i think that is really the the issue and is a critique question. i'm surprised and encourages to see on the ground you have a lot and i see during a rewiring for a supply change in the reason for items falling out of china. want e near term, what we to see is washington's actual move so we've seen a few moves on the transport. one cautionary tale is to do

.ashington machine and arted targeted tariffs rm from the near te supply chain rewiring are really, u.s. has chips fall how the but regardless there will be because there is a diversion to spread around the region. riffs are machine ta interesting we see steel and orrit washing ng f first.ariffs were there, out and blaming democrats for these market declines. that playing out?

ministration mp ad ffecting u.s. markets and what the fed does. >> that is what is going to be called. going to start what igating these and this does do is diminish trump's political, technical and political will. he can override a lot of the trade issues with his executive art with. st and that means there will be a lot of things he does, double down to distract. ch it's a bait and swit technique so. we're not sure affect, plays and that the fed has currently deal with extra physical stimulus and how much. but they need to keep a look out or some of the fading tail

winds and possible risks that come after. later going goito play too muc faster. >> head of economics will be joining us in singapore. news and you to jessica rests. >> tuesday's deadline for the government to make a you turn on and sterling fell the most in a month of prime ay faces a mid m week brexit deadline believing he's edging towards agreement

with brussels but conservatives are threatening to force to crash with no deal. wednesday is seen as crucial. a break is needed to be krut both and signed off by month.this > brexit is a tragedy for europe. we must add to that for drama of the uk departing in a disorganized way. >> and a new report from the united nations says iran is terms of to abide by 2015 nuclear deal and levels below powers and the report is a first for iaea reimposed ions were this month. and unions representing u.s.

ks of a ay potential ris noture on the boeing 70 are manuals are n training. it crashed october 29th, killing ople on board, linked to a malfunction that pushed a plane into a dive. local news 24 hours per day on powered by witter journalists in more than 120 countries. this is bloomberg. chs till head, goldman sa senior trend economist joins us hour.this and

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we're seeing jap january information nd technology, and topics down and as expected as we have apple and leading declining and overnight. started with a report because of oldings one customer that retused their course, they of didn't specify apple but sit is biggest customer. ten we're seeing suppliers here japan u.s. as well as in mentioned.

let's take a look at another hit tails of announcing de he ipo of its cash cow mobile $21 million and would help shift. what is it they're trying to do with this ipo? >> let's run through numbers compelling.y're s there is a stake in japan' third largest wireless carrier 1500yen a piece.

han what is less t we've expected ourselves. re is if news for with above the catch. telling us aes are vast majority will go to retail investors. the brand is strong, having bout 34 million wireless onsumers as well as popular baseball teams.

>> you mentioned just announcing plans to cut rates 40%. this is coming at a time when the government is pressuring mobile carriers to lower their fee. > that is right and the telecome industry has opinion under pressure from politicians and senior officials saying aused by as much 40% and so pressure is building and it doesn't help ier will a fourth carr

join the fray. ut strategy is to under c rivals on price. this. is >> this united states building ome here in telec japan and two more that you've lf.tioned yourse fund originalsion 28ses billion. and still being able to tap cash investments.

say thank you in tokyo there on this massive ipo taking biggest. japan's agree uildings supplier tos to sell a stake for 1 and 3 quarter billion dollars. nnouncing plans to divest $2 billion of assets. over the e doubled year. acquisitionsion in the group will focus on improving it's range of brands g labels that yin re profitable and show high growth potential. ral european eve

luxury brands. these are high groups, consumer ave high and a new report has 13 sites believed to have abilities on their location. joe, there is always speculation that north korea had a really halted their missile or nuclear development so how badly does this new report under cut president trump's claims that he is actually making progress on

tion?ucleariza >> it appears to under cut it fairly sig kanltly appearing his might be a you? strategy gram and trump administration said a steps nuke larization. so in any step toward real these arization means would have to be dismantled as well. pping at the cro time.

>> this as steps and talks between u.s. and north korea and he says lled that and interest is real concern on capitol hill that another and a et of pim saying they're

concerned. >> for apex summit this is likely to come up in discussions. are important meetings and we'll have to take a look at crews to how serious report. this >> thank you.

it's not this is bloomberg. i am a family man.

i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience.

my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. >> it is 8:30 and we're just an hour from trading there and the is any lead egion by there are supplies here there is a you're watching day break asia. jessica the news with

summers. jess? >> thanks sheri. between the u.s. and and west iaing rising nd h has opinion declining a opec and allies are debating uch this will cut production. >> wildfires in california have now claimed 31 lives and that makes them the deadliest in the state's history. experts say nature and humans share the blame. n the res have doubled i years. potentially gives

rategy next rove st month. that is below an estimate. and weaker readings puts on pressure to hold for a second es rates in rais august. strikes and has been ael and egypt's loss of power a decade ago. lobal news on air and twitter, powered by 2700 jurnists and 120 countries. i'm jessica summers thanked is bloomberg. >> thank you. let's take a look at our asian

up.kets shaping markets shaping up and we do have a red day shaping down here nd shares in japan falling by 2% and stocks are heading south and picking up trading at 113 .gainst u.s. dollar it's hurdle that keeps piling up we have investors so concerns over a slowing trend that comes ahead of sales due mainland on wednesday. and jumping in october will we cises that remain tame z driving that one picture. taking a look at where bleeding stock ening coming to

morning. half r four years getting revenue from apple and japan 11%. that prompted a down trade on he story and before these tremors speculators started and that heir bets position is illustrated by the chart.line on this ou can see the trend back in february. >> vice president pence hoping to reassure regional allies and

commitment despite president trump opting out of major summits.ional is some doubt about that is probably through ce is running so we know we know

issues seem to be free trade for and shing japan japan resisting that. do we know what they'll be discussing? hey'll be privately t and we about trade a lot saw new stories coming out from un overnight saying the trump administration is moving forth ith its review of potential tariffs. is china and now. >> about half have little or no confidence being able to do the

al ht thing in kwloeb glob affair affairs. >> the wind would be in a of urity sense, u.s. sort reenforcement of japan start ears we cann recent y china's almost now to as china he relation w and that shared challenge that they now have, pressure on trade from the trump administration. e've seen trump administration we get arder line so if that regional come sumits

a win. sider that in and this put could be viewed as another win and we talked about whether this is a sign of the u.s. pivoting the region. nd and they're fixated on increasing presence in the region. >> that is right. they'll deny they're pivoting region.e o en going on to these tw summits but of course as you say this is a region now that has become focal point for tensions

between china and the u.s. and allies and you've seen spending side.the chinese to try to win friends and influence people. s jekt got a fishery pro in french polynesia and in fact, venue for apec has chinese.t by the and leaders in malaysia and politicians in pakistan. what we've heard from experts is that when china's perspective getting this into its fold is part of winning this battle with taiwan as well. power in hauls of ashington whether they're laying ground work for

militarization. of a longer term strategy whether or not that is plan for beijing. debt trap and china's attempt to sort of gain leverage there. what are these countries saying about china? back.g to push >> we've seen of course a more ce in australia and of course, i spoke to him about this. this commitment to spend close to $2 billion dollars in the region and you've seen australia

in out bids for telecome ore ects over companies so m circumstance than aul australian australians as part of this. and in terms of development to be right to point out the criticisms of the project have to the that will be a hallenge and maybe something' dresses when hosting these leaders. >> why they'll let the chinese rier without having

intervention this, is mroomberg. intervention this, is mroomberg.

her china is signalling toug management of the dropping of phrase on a key policy report or the first time in five years. our next guest sees seven to the nless in six months u there is some heavy intervention. you with us. does does that say to you? appreciation, pace would be

however, it does not mean it would stop moving at this point. i think it is very important to ell of in mind as one as w a back drop. three years e than since since authorities tried dollar.way from a so, in 18 months i presently actually thought it's interesting a lot of the markets direction correct. it's arriving at a pleasure getting aroundle point because it's more flexible. hat it's means is t

50-50 currency. i think it would be a little bit of a sad fact if at this point, to the u.s. ag dollar. >> so what are the economic for that at you see happening? >> interest rate cycle has been different. authorities are pursuing goals so we do not want credit to keep pace.ilding at this rapid

it's kept out aat this point, it's what we saw so now, with tle bit creating a lit bigger scope for the authorities keep them moving in. hat bench mark t rate they haven't touched it

october 2013. do you think it's likely they're to that more that, easing by every leader they can tweak? without touching that rate? >> yes. five, e have seen in last this can be hat different. interest rates now, we're also this the process of of trying to unify this contract system into track so going forward yes.

this guidance to keep and is malg r manageable and might unloading bit of on so that it might not

his point and at t make sure it would be more and so thissed added ogether because of trade tension can be strong. o, you know, the view is that s and getting agencies asy policy leaders as well as

lementing. nd imp >> thank you. nd we'll have an alert on the that erg now hearing mcsally tweeting congratulations arizona senate race in to replace g.o.p. senator and we know this win majority in the blake.place jeff florida will be the only state where outcome of the senate races is still unsettled.

this is bloomberg.

>> tracking this our stocks are falling down by over 3%.

robotics maker close to 7% as well. one outlook to do ce 0 percent.redu >> down by 2 and 7 tenths of a ing a t there as well see bit of a battering there as

well. russell, what are we expecting? >> good morning. order xpecting a steady the newspaper reporting bank will remain on ending ma march and what we're looking for is the details. and we've he details anks are relying on like and we want to see

loan growth and more fees from businesses.g and those we're going to hopefully get light on those today. >> what are the risks to the in. s from here on >> that is right. pressure been under and banks being expending makeup for ad to ounts nd already other am one of them nting

the trade war. that is something we're fearing the most. major customers are in the auto sector and another risk is the stop route. on here tz relying pr profits and stocks are their income going climb. >> this is bloomberg.

bloomberg markets china open. byasian equities take a dive signs of week iphone demand. investors are concerned about the impending mobile ipo that might not raise as much as they would like. >> new york futures are extending a record decline as trump attacks opec. a 16e euro is hitting month low. it is deadline day in italy.

>> we are seeing things pick up from what we saw monday. you have to worry about what we saw from apple suppliers, not specifically talking about apple , but talking about a major supplier and how they are reducing shipment. felt. is making itself let's get to the board and look at what is happening. lamenting is the nexis of what is happening with the apple story. this company is saying one of its biggest customers, not naming who, has said they want a meaningful fallback and how much they will be sending to them and how much they will be demanding. the nasdaq is 2.7% down.

lamenting 30% down. apple is declining further. let's look at some of the supplies. a classic markdown. the thing about the meaningful cut back and how much the company wants without naming the company, it could well be apple because apple is one of their biggest customers. sharp, 7.6% fall back. look at all of the red. this is not a problem with your monitor. we do have other colors. -- yuan.rey

it is not currently looking great. we have red across our screens. yvonne: the renminbi is 697. i want to break the line coming through from the boj very asset holdings -- boj. thet holdings now surpass japan gdp. it is an interesting line and we will continue to watch it from the boj as they try to tame down the bond purchases. we are seeing their holdings bank. mark cranfield joins us in singapore. what has been going on with

price action and what do you make of it? is it just apple driving it? mark: for all the reasons you have highlighted, a company like apple has a huge effect on market sentiment. seent is also what we have in the last 24 hours. politics has not gone far away. it was very damaging for the markets in october and it has returned. the u.s. is considering putting and weiffs on imports heard they want saudi arabia to keep production going so there is pressure on oil prices. steve mnuchin has had a conversation with the chinese vice premier and it did not go well in terms of getting agreement there. so politics has a very bad effect on the market in october and it is not getting better. put that on top of the woes of declining tech stocks and it is an ugly picture.

what about the brutal open in japan? you refer to the automakers. what happened? there was a november relief rally. it is evaporating. mark: you can see how bad things are in japan. even the fact that the yen is weak, it cannot support the equity market. secondary data is not strong and it looks like japanese economy is sputtering. we will see third-quarter data soon and it will not be good. it was hit by natural disasters. and we had a release that the boj balance sheet is bigger than japanese gdp. central bankthe doing all it can to keep

monetary policy lose, it cannot get sentiment to be better in japan. we saw last week the retail sector, the investors who use the leverage products there were beginning to scale back. that was a warning indicator that the monza dads who invested in the market are losing faith in the small rally we saw in november. it is hard to know what will turn it around. yvonne: mark, thank you for your synopsis. the nikkei 225 is still down. you can follow more on the on youron our blog bloomberg app. >> tensions between the u.s. and saudi arabia are arriving after trump slams the kingdom's proposal to curb oil production next year, tweeting it should not happen, saying prices should fall taste on supply. opec says the market is

unbalanced again. >> the headwinds we are beginning to see is the return resultill of market as a thate rise in supplies might lead to resurgence of buildup. that is not in the interest of anyone. let's bring in our reporter from tokyo. stephen, should we expect action from the trump administration? stephen: it looks like trump's bark is worse than his bite. the tweet has pushed down the price of oil again. 12 day in a row. dot can the administration to get saudi to increase their output?

there is not a lot they can do to push it. the administration is considering sanctioning some saudi officials in relation to the suspected murder of the journalist last october. they might push up the rhetoric. but in terms of concrete action from the trump administration, there is not much more that can happen besides the president tweeting and those tweets affecting the market. >> the thing is, how should we expect oil prices if opec cut supply? a few years ago you said it would not make much difference but they seem to have more power given the opec -- that opec trust their friends. russia. it is opec plus wants to cut production by one million tons.

they plan to cut by 500,000 by next month. but you need russia on board. we heard that saudi -- opec rhetoric is there is oversupply in the market. and the russian side, you not seeing the same rhetoric. you are hearing that this is temporary and there is no need to cut production. so whether or not the saudi's and opec members can create a bridge with russia to figure out a production cut is unclear. there is an agreement, the market will respond favorably. that even after the carbon from -- comments from saudi arabia yesterday, the price of oil jumped 2.4% but ended the day down. is a concrete agreement, it does not look like the market will respond favorably in it upward trajectory.

rishaad: thank you for joining us from tokyo. let's take a look at the headlines with haidi. christensen them has one the open senate seat. vote countter a slow that dragged on for almost a week. share is arizona's first democratic senators since 1994. her rival mix sally was a trump supporter. loweuro sank to a 16 month as political risks returned. and the eu is prepared to take disciplinary dairy action -- disciplinary action. giovanni says he will stick by his spending plan.

sterling fell the most in a month as theresa may faces a brexit deadline. she believes she is edging toward an agreement with brussels. wednesday is critical. a breakthrough is needed on both sides this month. >> i have the feeling we are slowly tiptoeing toward an agreement that we will conclude in the coming weeks. brexit is a tragedy for europe and we must not add to that with the drama of the u.k. does -- departing in an disorganized way. risks of apotential feature on the boeing 60 -- boeing plane involves a system design to offer protection against motor control. , plane crashed in indonesia

killing all 189 people on board. the disaster has been linked to a malfunctioning sensor that pushed the plane into a steep dive. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: still ahead, we count down to the china open and how they will score a win for just showing up in papua new guinea. this is bloomberg. ♪

china.: we're looking at

it said it would improve the environment or businesses. but they face an ongoing trade war and volatile markets. yvonne: david is at a form in hong kong. him -- talk about -- for forum in hong kong. lots to talk about. what are the guests most concerned about? david: i was just speaking with the guest during the break about the challenges. liquidity issue, debt issue, and sentiment is bad. it is starting to affect some of the investment they have put in place. let's bring in joe way. he is the founding and managing partner at china creations and partners.

i wanted to start with the health and the sector. recent years have been good. but these last few months have been problematic. 11 years ago there was a limited number but now it is everywhere. it is very crowded. china, you know only -- there are a lot of newcomers. overall debt problem of the economy in china.

liquidity is also a problem. has that affected the fundraising environment? it is not a problem for you, but maybe for future rounds? much.did not do the ipo limitation in china did not impact us much but in two years, the debt is climbing for -- four ipos. i think for the fundraising the newcomers --for

[indiscernible] company youortfolio mentioned has received approval. tell me about that. it is surprising for us as a company. [indiscernible] the company signed a contractor to help them maximize their store. it is consolidating all of the app store traffic. david: is this the wrong time to ipo? the ipo in hong kong is slow

down.- slowed i think if you think about and not justegy the financial part. david: what are you looking at now? you are looking to invest in interesting things. what are some excited -- exciting parts? >> it is very exciting. internet has softly efficiency issue but in many -- solved the efficiency issue. enoughn when you have help with internet, we do not

have enough good teachers. david: so it looks like you are saying to apply ai into education? >> correct. we are ready to help look to the area to make sure the doctors and good teachers can solve more problems in time. we made several investments there that are very exciting. david: one thing that has changed -- what is one thing that has changed in the last 10 years? alibaba are now doing their own investing. is that a problem for you or does it help you? >> same situation. their strategy is shifting sometimes.

pressure.s a lot of but now more of them understand that early stages cannot spend so much energy. so let us play and we will send our good folios to you. the debt.talked about how has the weak currency affected the dynamic of fundraising in the u.s.? revenueof the portfolio will be impacted but there are a lot of people missing. something dramatic has happened in china. -- generation z,

their behavior is different. so the economy can make a lot of profit from the current generation. i do not worry too much. david: all right. let's leave it there. thank you so much. there are advantages and drawbacks but still a good. yvonne: great conversation. we will talk more about the yen reference rate that just came out this morning. it is slightly stronger than what we saw from what analysts were expecting. we are still watching the offshore renminbi where we are close getting to -- close to

getting be 697 handle. we are seeing less tolerance for weakness from chinese officials. policy report showed they were dropping the pledge about allowing supply and demand to play a bigger role in the exchange rate. so we might see tougher management. rishaad: every stock was down but now one is coming up. otherwise, this is the position at the moment. new york is now over here. this is bloomberg. ♪

rishaad: we're counting down to the hong kong open for markets. more weakness.

isking at tech stocks it partially down to what is happening with apple with remarks coming out of apple supply. but blackrock says some of these chinese rains -- names are getting compelling propositions. they are not necessarily the big ones. we're talking about a sector technology. sunny, aai see, it is down 61% this year. tencent, 33%. in terms of valuations, we are trading on multiples of 13.2

earnings which represent something of value. technology stocks are in the prey. -- in the fray. the open proper is nearly upon us.

rishaad: it is 9:30 a.m. in hong kong and shanghai as we count down to the china open. asian stocksf tumbling. we have a tech lead slump on wall street to thank for this. deteriorating outlooks for the iphone partially responsible for that. that is on top of huge amounts of volatility. we are seeing a risk off day but dollar is still reigning supreme.

this will play out in shanghai and china. we will see how things play out. -- hsi is down 511 points at the gekko. get go.e csi is down, all 50 are down. we have 269 stocks heading south. one of the things which let the fire to send them down is apple. aac technology is down.

we heard from an apple supplier in the u.s. cutting their second-quarter outlook after they mention one of their largest customers, not specifically targeting apple, but saying they have asked them to meaningfully reduce shipments. that is catching on. there is an apple flu in asia. let's bring in our next guest who works at bearing. is this all about apple? >> i do not think so. we are also seeing the financial sector slowdown. the news on goldman sachs brought it down and i think investors are concerned about the rate hike. and about europe because of the news on brexit is not positive. rishaad: it never is.

it sounds positive and then suddenly it goes negative. >> their hopes something might happen. ithout italy and the u.k., it would be dramatically bad for europe. so i think they will have to try to do something to make sure that the two of them are still entitiesnd ongoing trading with europe. rishaad: you walked into the studio during the commercial break and you had a long race. -- long face. a few years ago you did. one was because there was no volatility and now there is too much volatility. what will it take to make you happy? [laughter] >> let's go back one step. if you look at the earnings

delivery in the u.s. in the third quarter, it is good. if you look at it in asia, it is solid. theit is the concerns market has this year. there is a lot of fear and noise about trade and rate hikes and technology. these are valid concerns. but it destroyed the delivery of earnings at the aggregate level in the u.s. and asia. yvonne: are you buying on the dips? and how can you when the biggest constituents of what have been driving markets are the tech sector, which has been volatile? rishaad: and it keeps going down. >> within the tech sector there are internet companies that have sustainable growth in china. they are down 40% to 50% this year.

so the bubble premiums of the prices has gone up and they are trading at much better value at the moment. in addition to that, i think consumption is big in asia. consumer stocks, we look at those as well. rishaad: so everyone is looking for the one trade that will work, but they probably only work short-term. is there much more pain to endure? outlook for the market will continue to be difficult. rates in theising world economy is slowing down. 12 months, next investors have to be careful

about what they choose to invest in. versionse have seen a and consumer names -- divergence in consumer names. to you think what we saw over the weekend changed it for the consumer? there is still seem to be concerns if we are seeing a seasonal slowdown or a structural one. >> our research does not lead to us thinking there is a structural slowdown in consumption in china. china is still a growing economy. it might slow down a bit in the next year but it stays at 5.5% to 6.6% and consumption is still the bright spot. oil economies are still growing. i think it depends on which sectors you focus on next year. stock selection is more

important next year because markets will continue to be challenging. you have to be an active investor in a climate like this. no point in being passive. >> right. we have to find out exactly what they are doing instead of promising. 2018 with the year of dispersion. is 2019 the same way -- the same way? >> much less. at some stage the fed will pause. right now it is on a sugar high. that will slow down to a normal 2.2% to 2.5%. then the fed will say they have

say enough and will likely it after june next year. the second half of next year will be the slow time for the u.s. because the base for this year's high for next year will be tough comparisons. by that time, if the fed were to pause, that would be good news for emerging markets. rishaad: are they getting it right? i have looked historically at rate increases in the last 20 years and it seems they are assessing about the app level of interest rate rather than the proportionate change, which is a huge difference. in 2005, 2006, what they have done is almost double that. >> in mesa big difference to

those who are leverage rich. why sectors like housing and cars have slowed down in the u.s.. but note been impacted, the rest of the economy because of tax reform. when the businesses received a tax cut, what we think will watching.the fed is so when the level of growth and rate of growth in the u.s. slows down to the natural rate, the fed will pause. and then emerging will have a fantastic time but it could be a few months away from here. yvonne: thank you for joining us. rishaad: let's look at tokyo. that is a glaring statistic. thes get to haidi with

first word news. boj total asset holdings have surpassed the country is entitled gdp. top ¥353 trillion. the tv is ¥552 trillion. is ¥552 trillion. andions between the u.s. saudi arabia are rising after trump slammed the kingdom's proposal to curb oil production next year. he tweeted it should not happen and that it should fall based on supply. opec and their allies are debating by how much they should cut production. said report from the u.n. iran is continuing to abide by the terms of the 2015 new year deal.

they say tehran is keeping radium below the levels agreed with world powers and that inspectors were allowed to carry out checks on any site they wanted. sinceport is the first u.s. sanctions were reimposed earlier this month. -- 13 month low giving the r.b.i. room to hold rates when policy reviews strategy next month. a weaker reading puts pressure on the r.b.i. to hold off for a second meeting after it raised rates in august. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: coming up, how one of the year is best-performing crypto's is disrupting.

we will have more on that from a singapore fintech festival. this is bloomberg. ♪

rishaad: there is a lot of red at the moment. all stocks have fallen from one currently moving. not looking great. we will keep you updated in hong kong. cryptocurrency has been on the can it be sustained? correspondent in southeast asia has more. ripple has done better and

fallen last. let's bring in the ceo of ripple. why do you think ripple has done better than its rivals? the digitallook at asset, i think any digital asset in a long-term will be value based on the problems it is solving. i have seen the srp is solving real problems. ripple is used to solve problems, selling technologies to banks and financial institutions. there is a lot of speculation and height -- hype and as we separate it from reality, you will see a diversion happen. it is solving the problems. >> so what is the key milestone in the next year that would .--e the value of xmp --

xrp? if i'm going to rio website, and paying $10 a month for the article -- for the newspaper, i can instead pay a few cents for an article. so it is an extremely fast and low-cost way to move things around. it is a thousand times cheaper than bitcoin. ripple uses that same technology is scale with banks. it has been a record year for us. productionng over to contracts a week -- two production contracts a week. , because we are solving real problems, has driven excitement.

banks.work with a lot of but when it comes to institutional adoption, when will we see that happen? what is hindering the deregulation? one reason we are seeing some much interest in singapore is because you see regulators provide clarity of how they will approach crypto and locked chain. it allows companies like ripple to invest with clarity. morere seeing institutional interest in the crypto space. even recently, the parent company of the new york stock exchange launched in december. in singapore a year ago at this event, there were 30,000 people. this year it is 40,000. there is institutional interest from places like the apparent

company of the nyse. in ripple last quarter we announced there were people coming to us to buy xrp, more than we had seen in history. that will continue to grow and it will be exciting to come back next year and see how far we have come. >> how soon do you think? do regulators have given up and perspectives. >> that's the problem. you need a global framework. some countries have been a progressive and provided clarity. singapore has been a leader. so has thailand and japan and the philippines. but other markets have been slower. even the u.s., there is a lack of clarity, particularly around the sac. there is work to be done. until the clarity is there, it is hard for companies to invest.

--ould have protected predicted 2018 was the year of crypto. but it has underachieved what i would have guessed, because of regulatory uncertainty. >> i want you to a dress indications that your biggest rival, swift, will be joining you. banksft is owned by the and we are here to help the banks. we hear that blockchain technology is a massive to forward. usetechnology that banks has not evolved and kept up with the market. we feel like we are here to help the banks and swift is owned by the banks.

we will keep focusing on solving the customer problem. seet said they did not blockchain to correspond to banking but we have over 100 of their customers who disagreed area -- disagree. there are a lot of rumors and i'm hesitant to comment on any of them. >> could ripple take over swift one day? what we are executing on a day basis is taking over swift. we have sign up over 100 banks. they are now using ripple technology. last week we saw a remittance company using ripple technology who reduce their price per transaction from $20 per transaction to two dollars per transaction and they saw 800% usage increase overnight.

that is what we are able to address right now. banks succeedsee in the new world order and take advantage of these technologies. thank you for joining us at the singapore fintech. tomorrow is a big day. we are expecting justin trudeau to visit the festival. yvonne: we look forward to it. we will have more from the festival coming up. insurance needs deep tech with rosalind coup. we look forward -- we look toward the insurance company and how she is applying ai in business. this is labor. -- this is bloomberg. ♪

rishaad: as we look at some of the moving parts today, they are moving downwards. international corporation saying new homes sales could slide 10%. red.er down into the .&p might fall 5% japanese securities are predicting a 10% decline in prices. there is aaying compelling opportunity to buy chinese tech. tencent is down 3.4%. earnings come out tomorrow. it will be interesting to see what officials say about the risk when it comes to gaming approval. rishaad: a compelling valuation.

yvonne: sources tell us overnight about how the u.s., the white house is circulating a draft report by the congress department to impose tariffs on auto import. the life of toyota's down 3%. suzuki is down 4%. amidpence arrived in japan speculation the administration is working on that draft import. agenda asis it on his he meets shinzo abe later. they are investigating the import of vehicles and also auto port -- auto parts. endeavor energy

resources is expecting to value the company at $15 billion and endeavorut we're told prefers the option of an initial public offering next year and continues to work toward that goal. owners commercial bank if you are an investment banking survivor -- advisor, next year might not be rosy. rishaad: coming up in the next explainomas wall will where he found value in october. it was a brutal month for hedge funds. yvonne: and has a trading war is

hitting the hedge fund climate in asia. david and less will be at the conference and we will see how things play out. the nikkei is feeling it at the moment. this is a sea of red. no stocks are on the way up. we pretty much close to a raising november gains. rishaad: no stocks are on the way up in tokyo. looking elsewhere, hang seng is 15% lower. the csi is 21% down. all 50 stocks on the hang seng are down. indonesia is set to open now.

is falling out of favor 1/5 of 1%. we will see how things go in jakarta throughout the session. this is bloomberg. ♪

>> almost in :00 a.m. here in hong kong. >> asia-pacific stocks tumbling on signs of waning demand for iphones, apple supplies feeling the heat. >> to plan -- other losers include samsung and the foxconn parent. rishaad: an oil as well, new york futures expecting a record decline. president trump attacking opec's output plan. >> and the bank of japan's asset holdings are now bigger than gdp. critics are worried about the fallout from governor kuroda path policies.

-- governor kuroda's policies. ♪ rishaad:rishaad: no sign of thet purchase program coming to end. i don't know what the world is coming to at the moment, i really cannot make sense of it. -- to see continue to that. nervousness across the board .ere is no let up and fight just yet when it comes to asian equities. just going into the lunch break with a half-hour to go. it's down more than 3%. we are close to him racing most of the gains we saw in november.