haidi: a very good morning. i am haidi in sydney. scarlet: good evening from bloomberg global headquarters in new york. i'm shery ahn. sophie: i am sophie covered in hong kong. welcome to "bloomberg daybreak: haidi: our top story, asia-pacific markets are upset by the dollars plunge. falling from 18 month high. west texas suffered multiyear declines as opec warns demand

for its crude may slide more than expected next year. glimmernvestors see a of hope as investors confirm the white house is talking to china on all levels. for the news on potential easing of tensions between u.s. and china, helping optimism in the u.s., but not enough, given prices plunged. let's see how things are looking in asia. sophie is here. a three-dayr decline, asia stocks looking mixed in the wake of a choppy u.s. session. we have the nikkei and topix gaining while the yen is selling steady at 113 against the dollar. this despite the gdp report we got, showing the worst case of economic growth in 2014 -- since 2014. assessors will be looking at the impact of natural disasters and trade tensions. data,t comes to eco

chinese sales and factory data will be the key data point to watch at 10:00 a.m. hong kong time. opening marginally higher here. jobless ratethe fell below 4% for the first time in three months, world youth unemployment is at a 2016 low. shares are off by 1/10 of 1%. under pressure with energy stocks among the biggest laggards. brent takes, while below 66 per barrel. on the earnings, we are watching for updates from can day, kia ndai and kiaom hyu motors. the biggest update will be from tencent. third quarter's are due after market close. also, i want to highlight the british pound extending its rally. this in a report that ministers were grudgingly back, we do have

that trading at 130 this morning. sophie kamaruddin in hong kong. let's get you the first word news with just. says the white house u.s. and china have resumed contact at all levels. president trump and xi will talk when they meet at the g20 in argentina. larry kudlow says it is better to talk and not to. he warned there is no certainty that china will agree to u.s. demand. the only at the end of the month. >> we are now communicating at all levels and that is a very good thing. the president reopened the china talks, i wouldn't say they stopped, but they slowed down when he called president xi and it is now clear that at the g20 meeting in argentina, there will be talks between the two leaders

and whatever other meetings, trade will be included. jess: oil slumped the most in 10 years as demand for crude fell faster than expected. the cartel's monthly report highlights the slowing global economy and surging supplies from independent producers. the gloomy outlook may lead to significant supply restrictions. greece is said to be working on a plan to help banks cut bad debt. the latest attempt to rebuild trust in a financial system. sources tell us lenders which at's for half of the deferred tax claims to a special vehicle, which would sell bonds and use the proceeds to buy bad debt. the loans are worth $47 billion. the bank released its plan next week. the retail route that has swept to the u.s. has no cause manhattan its crown. the upper part of 5th avenue is no longer the world's most

expensive street for stores. the title passes to hong kong. street in london, paris and milan round out the top five. global news 24 hours a day over the air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am. this is bloomberg. thank you. can japan recover from the third quarter stumble? bloomberg economics policy editor kathleen is here. we are about the natural disasters. we are talking about trade wars. what was the biggest impact for the contraction we saw? kathleen: i think you just listed them. it had all kinds of things. consumer and business spending. i think it is surprising. it is a tough thing for the japanese and for the bank of japan, because there is a long string of positive gdp.

you can talk about inflation not being the bank of japan's target, but rising industrial production, we have seen japan's economy get hit by this before, but down 1.2% year-over-year, up 3% in the second quarter. people will say of the two quarters, it is still positive. .et's jump into the bloomberg if you are following your tracker, you would know already, because this white line shows we have a downturn. as you can see, we have that 1.2%. consumer spending down quarter on quarter. the spending was down 0.1, not so bad. business spending down 0.2. if you're optimistic, you say it is holding up well despite these things and there's a chance it could rebound in the fourth quarter. if you are trying to move the as japan isctations

trying to do, even if it is just optics, as people say, having a week quarter of gdp cannot help the boj in that effort. this is one of the things we have to be mindful of, and everybody is hoping this is a one-time thing and the economy gets back on the positive track soon. sophie: inflation is something that could help south korea. the jobless rate was lower than expected. kathleen: and maybe help president moon. market,comes to a labor it is one thing that is always front and center with the voting population. what we did see is that korea's unemployment rate fell to 3.9% in october and if we jump back to our bloomberg, you can see that for a while, it had gotten much higher. -- ihe fact that it is have to update this really quickly. give me a second year. what happened is it is not on the last months. now it is.

you want to see that nice tumble , that has got to make president moon happy. he had been under pressure since minimum wage hikes are there in the year, the economy was slow, labor market looking rough. we are not sure what it means, but it comes today's after president moon had a cabinet reshuffle, he ousted to officials. thatis certainly something even before those new officials could make a difference, he will be happy to see. we are waiting for australian wages, supposed to be 2.3% year-over-year. the rage picture, very important. the reserve bank of australia and of course, you how politics are in australia, you have one prime minister one year and a different one the next. shery: thank you so much for that. joining us is ed rogers, rogers investment advisors ceo. great to have you in the studio. let's start with japan. kathleen was telling us about inflation expectations, the gdp

contracting and well below what the boj considers to be its growth potential. will this put a lid on inflation pressures or could the tight labor market upset that? ed: that is the 4.5 join dollar question. the most positive thing we think is happened in the past four andhs is getting behind abe saying, we will take 500,000 new workers. is that the first step in letting in one million, 5 million, replacing the declining population, replacing the tax base? they had 364 jobs for everyone hundred accurate's -- applicants. if we can start to improve that part of the equation, then we get back on our inflationary track. it is a very coherent argument. a very sound argument to make. that said, these numbers are a

little disturbing in the short-term. we're just getting some breaking news. we have been fretting across the state of utter tariffs. that is something japanese investors have been worried about. we are getting news from people speaking on a condition of anonymity after a meeting , thatn the white house the trump administration is holding off on imposing new tariffs on automobile imports. officials are weighing up provisions to the report after national security concerns. if we get some clarity on the tariff front, on the trade war front between the u.s. and china and some of these individual directed atriffs economies like japan, do we see the rebound when it comes to japanese equities? ed: we think japanese equities are a steal at this point in time.

as everyone has noted, they have and the recent highs underlying economy is quite sound. provide a short-term reason for buyers to come back to the market? if the trade war turns into a trade skirmish, i would agree with that. my personal view might be kind of controversial. i think a trade war is good for xi right now politically. i think that having the united states have an aggressive posture toward china allows them to create a dynamic that allows them to get his own way in these things he wants to do, with regards to how he wants to reform and change china. let's wait and see how these talks come out. turner has to agree to everything and it will be interesting to see. i was going to bring up a

chart, but that is much more interesting. your personal view of how this could affect business. the prevailing narrative, at least when you talk to people in the white house, is that the trade war is going to hurt china a lot more than it hurts the u.s. in what ways to see being able to withstand that pain and to use it to his advantage? ed: that view would represent a view that only economics matters. in china, it is never only economics. politics is always the most important issue to be addressed. if of the of short-term economic pain, which they would suffer from certainly, if that would play into xi's domestic agenda, that can be fined. everybody might get if they want. the trump administration gets a victory, perhaps. china, politically gets to say we need to make changes because we have to respond to this trade

pressure from the united states. we saw japan do this all-time in the 1980's and 90's in the midst of trade wars and trade disputes. you would see the ruling party go in and in certain sectors, get what they wanted as far as reform and change because of the threat of u.s. aggression. before.seen this we know how to manipulate the system based on u.s. trade aggression. this would put pressure on the japanese to strengthen as a safe haven. how is japan affected by trade tensions between the u.s. and china? ed: in the short-term, it is very negative. this reflects the safety of the yen. we've not seen that yet. we think that is because the pressure on u.s. rates to go up is fairly relentless and there is no way that japanese rates are moving. the doj is not about to raise rates. -- the boj is not about to raise rates.

especially when you have some week numbers such as these, there is no appetite for it. because of these trade tensions, you have seen a closer relationship between japan and china. president xi jinping and prime minister shinzo abe meeting. could this be good news for japanese businesses? ed: absolutely yes. at high-speed rails, the china belt and read policy. this is a place where china can now woo japan. you see abe and xi reach an ineement on a rail system the mainland. japanese companies win economically and china can leave that discussion because of its belt and road initiatives. that can be positive for certain sectors and certain companies. course, you have mentioned the tax increases coming in japan as well. most people would think that is

negative when it comes to consumption, but could we see some booms as we see the fiscal side trying to -- with the japanese government, trying to anticipate the damage? ed: ec two things. on the retail level, before you see this go up, people rush to buy big items that will be 2% more expensive the next day. could be houses, could be cars. there is a short-term boost as people try to stock up at a cheaper level. then there's the fiscal question, getting your house in order. much of this 10% -- inal and the taxpayers the tax space. there is a significant deficit and they see this as absolutely needed to plug the hole. shery: thank you so much for your time today. ed rogers, rogers investment advisors ceo. still ahead, tencent traders are racing for their wildest day

since 2015. we bring you a preview this hour. haidi: first, looking ahead to the economic data out of china. we are getting a live report from beijing next. this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia." shery: i am shery on in new york. the white house says it has resumed contact in china on all levels ahead of a plan meeting between president's trump and xi jinping. our china correspondent tom mackenzie us from beijing with more. we just had a guest saying president xi jinping might like this trade war with the u.s., given that he gives him leeway to actually implement some of the reforms that we could see in china. what is the feel you're getting on the ground? doesn't look like we could be reaching an end to the trade war

anytime soon? i think we would be jumping the gun if we came to that conclusion at this stage. as your guest was alluding to, is could give president xi that impetus to push the reforms. it depends on how you define reforms, because in the area of state hold enterprises, he has shown no desire to privatize. he wants to see bigger, larger soe. that is part of the reforms as he sees them. there are many who say he is a conservative president and wants to see a greater role for the communist party. reforms may not mean a radical change. terms of the trade war, we have heard from the white house. we would be surprised that they had a low-level official ahead of the g20 meeting. w said he didn't want to predict the outcome. ,e invited his economic advisor

talking to the tributary sequeira. both sides preparing a framework for this meeting. in the last week or so, we have heard one of the hawks. if one of the -- if anything, these comments from navarro and kudlow go to highlight the division in the white house on the hawks on one side and the doves in the other. who is winning out in terms of the presidency, we may get some indication of that, g20. better with the chinese budging or making significant concessions. that would be a surprise. what we may see as president trump softening some of his demands. we will see how it plays out at the g20 meeting. president trump headed to the g20, we sometimes get these summits in asia. 's star glow brighter. one of the initiatives was this regional trade pact. now we're hearing there could be

another delay in getting this deal signed. wife -- why? tom: they had hoped to make significant progress on this, but there are a couple factors delaying this, at least until 2019. from the indians, there is concern about the free movement of skilled labor and the malaysians, the prime minister thatng about his concerns medium-sized enterprises need to ensure they have got a big slice of the pie, not just big companies. a couple things need to be ironed out. this involves 50 nations, including australia, south korea, japan. it is something as a whichrweight to the cpb, the u.s. called out as more narrow in focus. if it comes to a conclusion next year, a will be seen as benefiting china. else, i havehing managed -- they have managed to

get the group's handshake down pat. in terms of what we are expecting from today out of china, what are you watching? we're expecting a reputation -- a repetition of september numbers. the retail sales number is expecting to come out with 9.2% growth, compared to september, which was 9.2%. the sales numbers will be interesting. we seen auto sales fall substantially here. it may be a case of consumers holding off to see if there is a further tax cut. industrial production may give us a better sense of the impact of the trade war. have a chart that shows this 2007.rom they have been grinding lower. export numbers have been healthy because of this frontloading effect. we are expecting industrial production to common at the same point we saw, 5.8% growth.

interesting, this one, given that we've seen policymakers try to step up infrastructure spending. that may see a markup. you may see 5.5% year to date versus 5.4% in september. see if we get any additional infrastructure spending. we will be focusing on that. we will get the jobless number, which last month came in at 4.9% and property investment, which has held up strongly despite falling house prices. haidi: after the lending numbers disappointed, people hoping to stay positive today. tom mackenzie in beijing. member, bloomberg users can interact with the charts shown the program using gtv . you can browse recent charts, catch up on the analysis and save those for future reference. this is bloomberg. ♪

shery: general electric searched the most in more than nine years after their acquisition of a oilfield services company. it sold more than 160 million shares and a stock repurchase in a deal that could raise about $4 billion. the decision marks the pivot away from oil businesses championed by former ceo. haidi: boeing slumped on deliveries. the cash cow compounding worries about a safety feature that has been linked to the fatal crash in indonesia. those shipments at risk of missing annual targets. bloomberg intelligence says it has delivered 72 737s this month

and hit that annual target. qatar airlines has renewed its threat to leave the oneworld alliance after a letter sent attacking the company. this are present a further deterioration with a dual venture with the dubai rival emirates. there is no point in being in oneworld if other earners view qatar as a threat. our top story in the market has been this route in oil. 12 days running when it comes to the wti. that is a record losing streak. brent is seeing some pain as well and the biggest intraday decline in seven years in west texas. it is not just crude there. that is also spreading to other commodities. a little upside, gold catching a bit. the bloomberg commodities index falling to a two-month low. shery: let's take a look at

markets now. nikkei getting ground versus losses yesterday. now losing ground for a fourth consecutive session, a mixed picture across asia. this is bloomberg. ♪ this is bloomberg. ♪

haidi: 8:30 a.m. in hong kong. one half hour away from the opening in trading. shanghai coming online in just about one hour. the one to watch is the nikkei data. we are expecting retail sales and investment as well as industrial production in the next hour or so. it will give us the latest reading or gauge of how the trade and all those associated headwinds impact the chinese economy. shery: i am shery on in new york. but get to the first word news. thanks. it japanese automakers are

higher after bloomberg reported trump administration will hold off for now on imposing new tariffs in imports. that will give top officials time to weigh revisions on national security implications. the commerce department covers cars, suvs, vans and light trucks, as well as auto parts. the president has threatened tariffs up to 25%. japan's third-quarter gdp numbers came in worse than expected. the economy shrank by 1.2% annualized from the previous three months. economists had expected a 1% contraction. d onral disasters weighe demand and pressured exports. ofiness spending fell 2/10 1% and forecasts have been for a slight expansion. in news of rising the u.k. in the european union agreeing to a draft deal on brexit. potentially offering enough time to have both sides sign off this month. theresa may must still drive the

deal pastor cabinet. reporting the five eurosceptics have agreed to support it. in downing street, they will put wednesday. a vote the trump administration is preparing to ramp up the pressure on iran with the intention of forcing a submission. national security advisor john bolton says tehran is under increasing strain and it is washington's intention to squeeze them until they squeak. the administration's rising offensive. global news 24 hours a day over the air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thank you. let's take a look at how asian markets are shaping up. we saw positive reaction at least among japanese automakers and the bloomberg report on these tariffs on auto parts,

they are on hold at the moment. it is a week where we will take all the good news we can get. sophie: that is the case. keep in mind, we are not in the clear just yet when it comes to japan and the u.s. trade policy. mike pence earlier criticizing the deficit with japan during his visit to tokyo. keep that in mind as well. when you take a look at the moves today, we're seeing japanese stocks gain ground despite the gdp report we got this morning. the yen is on the back foot. i want to highlight the korean won gaining ground. it is getting a lift from the improvement any jobs data. we did see an employment rate fall 3.9%. under pressure, this is energy stocks losing ground in seoul. the oil refinery sliding more than 3.5% and energy stocks dragging on the 200, off by one third of 1%. to get a closer look at the key

movers in the region, we pointed out we did have auto stocks gaining ground in tokyo. under pressure, falling after cutting its for your forecast. sincer, we saw the most february 2014, dropping 13%. this company makes manufacturing lines from different industries, two daughters. this does respect -- this does reflect a downward pressure from companies exposed to tariff concerns. we're seeing samsung biologic extend its rebound for a second session. may hear from the korean security regulator to roll on the accounting audit into this biotech firm. that sparked a $4.8 billion wipeout in market value. highlight i want to flipping after forecasting weaker first-half earnings on higher input costs. this stock could be heading for the lowest close since 2014. shery: thank you so much for that. dive intond a deeper what is happening across

markets, bloomberg strategist mark is joining us from singapore. mark, we saw the plunging crude prices weighing on u.s. markets. this chart on the bloomberg is showing how sharp that selloff was. the sharpest in years. if you take a look at the 14 day rsi, you can see that it is over sold. how will this affect what markets in asia do? to some extent, people will be looking past it, because yesterday, it looked like a capitulation in the crude oil market. contact, somewhere in one million transactions taking place. it looks as though the last people who were bullish on the market are giving up and there is a good sign we are getting close to a bottom in the market. when you consider we have been falling for 13 days in a row,

there is not too much more downside coming in oil contracts. that opecrrying is says demand for next year will not be as good as this year. that will obviously mean that people want be too excited about how much further oil can rebound when it does eventually do so. that is probably the thing that will affect markets on the outlook for 2019 and that might not be factored into energy companies as they start to do their forecast for the year ahead. shery: chinese markets have been more resilience the last couple days. the shanghai composite, the han seng in text gaining ground. with more optimism over trade tensions between the u.s. and china, could be seen that upside continue? people aresure beginning to think that the worst is behind us. it has been a terrible year for china related markets. they can only get slightly better. what we did see yesterday was

credit data out of china, which was soft and indicates that the economy is probably slowing a little more quickly than some of the official data tells us. have industrial production and retail sales linked. people are washing my closely to see if there is any improvement in the trend. financial markets are overdone in terms of equity markets discounting all of the bad news. in terms of positives out of china, there are not too many that the market. it may not go too far. a lotlly need something bigger. haidi: what theresa may still has out of her. mark: certainly.

she has a lot of work to do. getting a technical deal on brexit is one thing, but getting her government to approve a deal seems to be even harder. apparently, she is talking individually to all the main cabinet people and there is a report that at least five key people are on the side willing to support her plan. she still has to get a through parliament, but it will not be so easy. the voting is apparently very close. whether she can get it over the line is really touch and go. we will still be in for several days of uncertainty, and even then, there is a chance it could fall apart at the last minute, because the political process still has to go further. we have to bear in mind that the european leaders, the political leaders have not agreed to this. this is only the technical details which have been ironed out. we are in for several days of studying volatility. thank you so much for

joining us. you can follow more on this story, all the top trading stories today on the markets live blog on bloomberg. you can get a market run down in just one click with ongoing commentary and analysis from bloomberg's expert editors and find out exactly what is affecting your investments at any given moment. let's head to geopolitics and leaders from 10 nations, along with china, the united states, japan and russia. our correspondent is at the summit venue and had lots of leaders to talk about. >> lots of issues. , wealked about a prospect talked about tensions in the myanmar.na sea, about friend and center remains trade. the u.s. china trade war has impacted a lot of economies. a lot of countries have reported a slowdown or contraction in

manufacturing, so it is impacting the supply chain in this part of the world. that is front and center. what will it look like a couple months down the road? all eyes will be on whether the can meet on the sidelines to possibly be a precursor to that meeting between trump and xi jinping later on this month. lots of discussions to be held. the question is whether trump is sending a strong message to this part of the world by giving this meeting a miss. this is not the first time that a u.s. president has given it a miss. in 2013, obama gave the meeting a miss because of the government shutdown. the question is whether or not pence kindle the void left by trump. there is a lot of doubt. here is what some businesses in the u.s. are expecting pence to convey. >> they are going to be looking for u.s. leadership. they will be looking for

specific strategy. they will be looking for specific trade and economic deliverables. i think the vice president is going to announce things around the digital economy, energy, infrastructure when he gives a major speech at the summit in pop on new guinea. guinea.apua new haidi: lots of questions, lots of uncertainties at a speech at the opening of the meeting. the prime minister mentioned he is concerned at the outlook of multilateralism. it seems like developed nations to not mention the u.s.. he did say there were lots of concerns about how governments are taking unilateral decisions and that is putting in question multilateral agreements, whether they will be new rules of engagement or a breakdown. we have to wait and see. fory: thank you so much

that. our chief national correspondent for southeast asia. coming up next, tencent reports after the bell wednesday, facing headwinds from the slowing and regulatory scrutiny. we will preview the numbers. this is bloomberg. ♪ bloomberg. ♪

haidi: this is "bloomberg daybreak: asia," i am haidi in sydney. shery: i am shery on in new york. tencent has lost more than $215 billion of market value this year and the head of earnings said investors remain wary and caution is high. for more, let's bring in krane fund advisors managing partner mark schlarbaum. great to have you with us. we are expecting tencent revenue growth to slow down by how much? tencente consensus for third quarter 2018 numbers is

revenue growth of about 20%. that is mainly coming from slowing gaming revenues. they have not gotten a new game approval since they shut down the new game approval's with pubg, which has become an incredibly popular game in china. and they aren june unable to monetize again, so it fromlling gamers away honor of kings and other games that can be monetized by tencent. they are being pulled away by pubg, which is unable for them to make money at this point in time. shery: we had heard or were expecting for china to stop this halt of game approval's by the fall and that didn't happen.

they closed a green channel as well. is there any hope when they could approve these games? mark: it has been an interesting saga. it was rumored in mid-october to be coming back, then the stocks popped a bit. the consensus now is march of 2019, when they might resume. it has been difficult for tencent because they are caught in a no man's land where they don't know what to do with this incredibly popular game they have. the regulatory bodies start approving these games, they may change rules and gave tighter regulatory controls over content and time spent for minors and that sort of thing. once the rules are laid out, to changell be able and understand the situation and adapt and hopefully monetize those games. the problem is that in

the short-term or even medium-term, two issues that are plaguing tencent. one is the regulatory overhang and the others a trade war and the tech sector. neither looking like they will go away. are we expecting more pain ahead? mark: i was looking for numbers this afternoon and it does look like there is going to be some pain to be felt going forward. although, there is some positives developing on the horizon. 2019 numbers start to come online, and you are getting some positive chatter out of the g20 about communication channels opening up again between the u.s. and china, about president trump meeting with present she -- president xi. once that clears up, if we can get positive momentum there, then we can get the game

regulators to start approving will again, i think you start to get a lot more clarity on 2019 numbers and you could see stocks start to rebound. for now, it is a wait and see mode. wait and see whether guidances for 2019 and as most tech companies have not given great because for next year, there is not a a lot of clarity at the moment, i wouldn't expect tencent to be any different at this particular time. haidi: they have also made efforts toward restructuring to cut back the number of business units. they have been reducing marketing to try to improve cash flow. would you like to see that happen faster and what else would you like to see from the restructuring? the: i would like to see utilizationtising numbers go higher.

haveof their competitors ranges of 7-10%. another competitor of tencent on their online applications. monetizeent is able to wechat, with over one billion users, i would like to see that %tilization go up into the 5%-6 range. will be see chinese authorities taxing these online gaming revenues and if china doesn't approve or is still continues to hold these approvals, can other markets like japan offset the losses? mark: they obviously have globally popular games, so they

have three out of the 10 top ios downloaded games. honor of kings, mp4, and saint -- i'm not sure if i said it correctly. they have a global footprint. there are talks of taxes that .ay come into gambling games the content is going to be important. people have talked out how violent of a game pubg is. a first-person shooter game. there is talk of them scrapping the game and starting from scratch and saying, give this one to the chinese authorities. it is kind of a a lot of unknowns at the moment. it is a wait and see situation. tencentn the meantime, needs to readjust to the new environment. thank you so much for that. mark schlarbaum, krane fund advisors managing partner.

coming up next, a new development in the trade war. details on the trump administration's plan to hold off imposing new tariffs on autos next. this is bloomberg. ♪

shery: this is "bloomberg daybreak: asia." i am shery on in new york. haidi: i am haidi stroud-watts in sydney. hearing automakers are

a report that u.s. automakers will hold off on tariffs of imports. on theion to a report national security implications. in jodi schneider has the story. what do we know? we see the market reaction clearly. jodi: the market is reacting to the fact that president trump met with top trade officials at -- white house and after there should be an imposition of tariffs of as much as 25% on cars coming into the u.s. on national security applications. they are conducting a probe under what is known as section 232 of the trade expansion act. the same section that allow them to impose steel and aluminum tariffs earlier this year. shery: we had heard before the the trump administration was not

going to apply auto tariffs on japan while they had trade talks going on. how would this have an impact on japan where there carmakers? and: there was an exception to some european automakers as well, while they look at broadening trade with those countries. what happened is they could do this in the future and that is always the case with these countries to worry about. .e saw that in nafta talks the administration said they would not impose tariffs on mexico or canada while they were having the talks, then when they were not going well, they said we might do that. away, sotions could go that is why this is so important. the commerce department has until february to deliver the report and president trump would have 90 days after that to decide what -- whether to impose the tariff. it looks at this being taken off

the table for now, but president trump tends to come back to --se things and he does like the case he is making is that he will impose tariffs if he thinks this could be a national security threat to the u.s. shery: you never know. thank you so much for that. as we count down to more market opens in asia, let's look at earnings. that will decide the direction for a few notable stocks. remy has more on this. we will be looking ahead to see how the stock market performs, because when earnings came out, the show that earnings missed estimates by 6% coming in over $800 million. it is this kind of apple drag we have been talking about this past week with the likes of momentum lowering its second-quarter outlook, gdi cutting its forecast. the shares year to date are down a little more than 37%. helping to the bloomberg terminal, it is not just

negativity on share price. it is negativity on analyst recommendations. the anr functions for foxconn, the most interesting thing to note is that this yellow area is the holds. this is the most holds we have seen for the stock on record. you can see the buys in green at their lowest at least for 2016. this is a musty second lowest since asserted trading. reportedble group also earnings. we know about this commodities trader's fall from grace and the endless problems. ramy: it is basically, what they're trying to do is restructuring through the end of this month. we are expecting that to close november 26. the newe're expecting the company to start trading after that. the numbers you need to know on your screen, a net loss of $99 million. that is still bleed from the past few years.

the past several quarters of several millions of dollars in terms of losses. not good., poor, cold trading. that was its main bread and butter. it is on thermal coal. it is premature zero. -- it is pretty much at zero. haidi: before we hand over to "bloomberg markets: asia," let's look at how markets are trading in the early part of the session. they turn positive when it comes to japanese equities. a miss on the third-quarter gdp. holdeport on tariffs on for automakers certainly perking up japanese equities. energy shares seeing those declines in sydney. ♪

♪ >> it is 9 a.m. in hong kong and shanghai. welcome to "bloomberg markets: china open." trade optimism of setting a gloomy outlook from opec. investors see a glimmer of hope, as the white house puts auto tariffs on hold on concerns of the u.s. is talking to china come at all levels. >> and the geopolitical spotlight comes to singapore, where the first full day of the asean summit. the trade war is expected to dominate the agenda. ♪

yvonne: good morning, a pretty choppy session across the region. we are dealing with a capitulation in oil prices after the 7% drop in a wti overnight. comes tobit when it the selloff for now, but we are also dealing with the trade side right now, looking more positive as rishaad dimension. the colors say that the u.s. and china are talking ahead of the g20 meeting. the u.s. is also said to hold off on auto tariffs now, that is certainly helping the nikkei 225, swinging back into positive territory by about .3%, but brent crude is still holding losses. overnight

singapore and taiwan are just coming online, we are seeing a downtrend. one stock to mention, tech stocks, still in focus. apple suppliers, missing estimates for the quarter. hsbc downgrading the stock to a hold right now, down about went percent. singapore airlines, though, also toppling down, about 80% due to rising fuel costs. as stock is down about .3% it opened in the lion city -- singapore airlines. comingtrading losses through for noble group as well. china, it could be a pretty top-seeded turvey session -- topsy-turvy session. the likes of tencent reporting earnings later today. your offshore renminbi, we are still holding onto the strength we saw yesterday on news that

perhaps there is more dialogue between the u.s. and china. onto point 694 for the dollar remembering. rishaad: you have been alluding to the credit slumped last month i'll admit the flow government debt oil. best debt sales. the latest reading suggests that more stimulus is on the way. let us get to tom mackenzie. tom, how concerned should aboute policymakers be all this? should we be concerned, and are they concerned? rishaad, i think that if you are looking for evidence that beijing is able to juice the economy and pick up its growth momentum, then the evidence from this data set is not there. the aggregate social financing came in well below forecast, and as you pointed rightly, this is largely down to the drop in

local government bond issuance and that issuance, something the policymakers had said they wanted to support. no evidence it has come out quite yet. an loans, new uyu also at the lowest level year to date. systems liquidity in the , with the triple are cut, but it is not being -- with the triple rrr cut, but it is not being supported. the leveraging campaign, indicators dropped again in the latest readings. that is a positive if you are a fiscal hawk, but if you are a private company which relies on the shadow banking sector, the liquidity and credit, it is a concern. those caps seem to be continue to be close off. in houseur economists

consider this is likely to lead to more aggressive policy, it may lead to another rrr cut, and it could also put the benc -- benchmark in place. something that had not been forecast this year. yvonne: there used to be a minority on those calls, but they are certainly getting a bit louder now. we heard from larry kudlow, trump's top economic advisor, saying that china and the u.s. are talking on all levels on trade. >> we are not communicating at all levels and that is a good thing. the president kind of reopened china talks, which i will not say had stopped, but they had slowed down, when he called president xi jinping. it is pretty clear now that at the g20 meeting in argentina, there will be talks between the two leaders. and whatever other meetings, trade will be included. yvonne: so it seems like the

mood maybe a bit more positive now, just from that. it sounds like they are closer to a deal. tom: possibly. i mean, it is hardly a man bites dog story, you would expect talks ahead of a major meeting presidents. so, no real surprise that they are talking. and of course come out the comments from larry kudlow do, is continued to articulate the division in the white house between the hawks on one side, navarro and light heiser, and then the doves on the other side, the stephen mnuchin and larry kudlow's area and so what -- and the question is, who is trump listening to and how is the strategy being guided? who is he paying the most attention to as he leaves for the meeting? if you look at how trump dealt with kim jong-un, how he does with south korea over the trade deal, and of course, mexico and deal that trump made, you

can look at that as a case for how trump may approach of a deal with china, if you are optimistic. but if you think that peter navarro and robert lighthizer, that they have his ear, this could be a much more drawnout affair. there may be a framework to de-escalate the tensions of the meeting, and that is what we are looking for. a should mention, in terms of the domestic agenda in china, we are focused on the data coming out at 10:00 hong kong time, to give us a gauge of how that trade war is impacting the trade what does the economy numbers. they had a focus on infrastructure spending, we could get a sign of how much that is coming into play, with the fixed asset investment numbers. yvonne: we will see how fragile the economy is, will we see in a policy trickle through here in

these numbers? tom, thank you. talkinge, we have been about where we are globally in the studio, israel. david english is also back in the field. -- i am here in the studio. the bloomberg venture forum in hong kong, david is sitting with a guest. david: the co-ceo of bain capital credit jonathan s. lavine is here with me. the question you just raised about where we are in the credit cycle -- leisure to have you here on the program. i would like to ask you, there are lots of things happening in the world. you cover lots of things. what has been keeping you the busiest? jonathan:i would like the last e u.s. election made 70 is. i think that while there has

been a lot of drama, i think what people thought was going to happen happened. the democrats took the house, perhaps with a few more seats expected.e the republicans held the senate, maybe one or two seats more than people might have thought, but in the range of expected outcomes. the interesting thing was. expected. , it was not exactly the senate seat the democrats people thought, and not exactly the lost for the republicans, but at the end of .he day, it is a positive thing david: a lot of people have pointed out that the lack of the united government would essentially reduce the do you thinkf -- that is accurate? when you look at the credit cycle? jonathan: it is not entirely clear that we needed a lax -- that we needed to relax fiscal

stimulus. i think reducing corporate taxes was a good thing, some of the other things are not necessarily as helpful with wage increases of the average american worker. i think that credit cycles are often caused by specific industries undergoing change, as much as by some sort of economic slowdown, for example, and there's so much dynamic change going on now. whenw it sounds trite, but you look at the advent of technology in a changing not just the way people by come up the way companies operate, the way retailers are set up, kiosks and aiting at cash registers, an is that of people, those kinds of changes are more interesting in terms of what is going on the risk they have not sure if fiscal stimulus would make or break how those industries turn out? david: a lot of people can session.ell an extra

using that these is, is anything we are advising your clients to do or not do? jonathan: sure. -- e is an old adage that right now, the economy, the expansion, whether it has been one of the longest, it has actually been the second smallest in terms of aggregate growth. it has been at low and slow for a very long time. that is one of the reasons i think we have not had a recession, because we never extended so much better cause a -- so much that it caused a big downturn. recessions are painful, but cycles happen and if you own good credit, a recession is more of a buying opportunity than a need to sell. people unfortunately are so anchored in 2000 8-2009, but

history shows that if you are a good lender, if you had a good set of credit, if you held and actually bought through the downturn, you did better. so i think there is no need to panic. think nobody likes it when it is happening, but the average credit cycle last for three about 9% downturn, then it is four months, general .xpansion occurring after that david: which a lot of people seem to forget, as you pointed out. it is not all that bad. you guys are busy in china, what are the priorities for you all next year? jonathan: we work across the region. china is obviously a focus. we think there is an developing opportunity in china for nonperforming loans, which are portfolios of loans that you would buy from a bank or an amc.

i think the interesting thing is that it is a fairly large opportunity in china, but the system is being very methodical about how they are worked out. david: not for everyone, though? jonathan: know, you need to have very specific skills in analyzing large groups of loans. if you are doing it right, you're looking at the lion inres of loans, not doing it some statistical way. you need people on shore to service the loans and you need to have experience understanding diverse pools. beene, is a place that has overeading area for np;s the last five years -- for nonperforming loans over the last five years, and there are constructive ways that the government can help that would be applicable over here. history does not repeat itself, but it does rhyme. david: one of the key issues in

china, the slowdown, the lack of reverend credit, what have you, you are starting to see that really show up, with high-yield moving up in the property sector in china. how does that affect you in your npl portfolio, if any? buying a when you are portfolio of nonperforming loans, your mission is to make them work. to work them out with the seller -- with the borrower, see if you can restructure in some way. the development of a private credit market in china is a different thing, where we would also participate, expanding you credit. interestingly enough, those two things correlate a bit because if banks are focused on nonperforming loans and fixing them, it is a little bit hard to also focus on the the expansion of credit. because ridley, it is expanding and contracting at the same time. david: we are out of time, but

we have to leave it there for now. these come on the show again, jonathan. that was jonathan levine there from bain capital to read back to you, yvonne. yvonne: will come to you a little bit later, that was david english joining us at the conference. paul allen joins us from sydney with the first word news. thanks, yvonne. japanese automakers are higher after bloomberg reported the trump administration will hold off on imposing you tariffs on imports. that will get top officials time revisions and support on the national security implications. suv's, vans and light trucks as well as auto-parts -- the president had threatened tariffs of almost 25%. news that the u.k. and the eu has agreed on a draft deal on brexit is potentially offering enough time to have both sides to sign off this month. however, theresa may must still drive the deal past her cabinet.

five hardline eurosceptics have been reported to support it. italy and the eu remain on a collision course with the populist government determined to defy brussels over expanding plans. the coalition says they will stick to their growth and deficit target despite the budget being rejected by the eu commission. brussels might note -- might now trigger disciplinary action which may lead to fines of billions of euros. greece is said to be working on plans to help banks cut their debt in a latest attempt to rebuild trust in the financial system. sources tell us, banks would transfer half of their deferred claims to a special vehicle which would sell bonds and use the proceeds to buy some of the debt. the loans total at least $47 billion. the bank of greece will release a detail of the plan next week. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over

120 countries. i am paul allen. this is bloomberg. ♪ rishaad: thanks, paul. still ahead, how a south korean food delivery giant is turning to robots to meet demand. i am at the j.p. morgan global conference speaking to chief strategy officer, sean oh, later in the hour. yvonne: and cummaquid today be tencent's wildest day in the markets? we have a preview of the company's third-quarter results, with analysts lowering expectations and big moves expected in the stock. this is bloomberg. ♪

♪ >> euros stocks dip coming .694 02,saying that

slightly weaker than what analysts had its acted around .69 3,694. we are also seeing their rebound in the renminbi, it has been slowing down a bit. perhaps jenna and the u.s. are going to be continuing discussions here. correspondent is heading to washington in preparation for the g20 meeting. so that will be something to watch with the renminbi. looking at tencent, the, it looks like earnings will be out later today, with the third quarter looking a bit shaky here. the market seems to be pricing in wild swings in the stock. tencent is for profitable, but businesses are getting bleaker with slowing ad spending and slowing regulations. we are joined now for a preview

by our correspondent. what do we expect here today? >> sentiment is not that up for $.10 earnings, earnings are expecting -- for tencent's earnings this letter. people are not expecting income to rise. the factors are already out there, the crackdown on gaming, the micro economic slowdown, that is also slowing down advertising income. so people are waiting to see when this will be over and trying to pick up any positive signals that management can get during earnings calls today. rishaad: it is a fairly low bar to beat this time around, though, isn't it? do you expect any changes to the company's structure? lulu: the company has announced they are changing part of its structure, elevating the cloud business, so that will become a

huge part of the business going forward. they will not be trying to service more -- they will be trying to service more corporate clients instead of just focusing on the consumer and. therer thing is whether will be clarity on whether they will be able to monetize fortnight, the gaming business. at this point, there is still no clarity. we also reported earlier this month that the company has been cutting back on its marketing for the gaming divisions budget. yvonne: yes, we will see in that leads to some crushing effect on what it is to come. thank you, our asian tech reporter. more ahead here on bloomberg. chen.nk you again, lulu ♪

♪ yvonne: let's get a latest check on the latest business flash headlines.

stock will seize trading friday ahead of a long-awaited restructuring from november 26. the marathon debt equity swap will see shares being offered from the following day. noble has reported a third-quarter loss, saying that is coal business is struggling to make money. reporting earnings from this apple supplier are the latest sign for weakening demand for iphones. they reported third-quarter net income of about $800 million, 12% below the average estimate. they join a string of apple suppliers warning of a worsening outlook as iphone volumes plateau i made a lafarge it smartphone market. the bank of china is makingtheye its first offshore -- marking its first offshore bond. one company working on the deal says it offers five tranches in for currencies.

china wants to transform the greater bay area enter a high-tech megalopolis to rival silicon valley. time now for the open of markets in hong kong and mainland china. let us take a look at the premarket. we have been talking about how it could be topsy-turvy today, given the fact that the oil price -- even though we halted declines, there is still a 10% drop of the wti overnight. the hang seng ready mark -- the hang seng free market is up about a third of a percent. futures in the mainland heading in opposite direction, and the offshore renminbi still holding at 6.94 today. we are looking at the premarket, chinook as well as petrochina down about 4.3%. tohave also big earnings terry about, tencent looking to be a pretty wild session tomorrow. offshore market

is pricing, it could be a pretty dire outlook when it comes to tencent. samsonite and other companies also reporting today, samsonite disappointing on their sales for the quarter. this is bloomberg. ♪ ♪

♪ rishaad: it is 9:29 here in hong kong, and we're counting down to the start of the trading day. in shenzhen and the rest of the mainland china. we have a bit of optimism with auto tariffs coming through, we also have equity futures on the way up in the u.s.. also, key data on the chinese economy coming out. muted ati in japan was this time, despite the mix when it came to the latest of growth estimates. elsewhere, it is about oil

prices, plummeting the most in about seven years in one day alone. looking at that, it does make itself felt when it comes to energy-related companies. chinook.s such as also looking at currencies, the sterling come other brexit deal is nearing and that is giving optimism for the pound bulls, as it were. there you have it. at the we are looking losses at the open in the shanghai composite, about a third of 1%. it shares also heading down, losing is activity. moment.uch flat at the the key thing to watch will be the data from china in the last half hour or so. sales, fixed asset investment in after the poor credit day we got -- credit data we got overnight, it seems that we need something to boost sentiment over all, but also it can be so bad that it is a good

thing when it comes to markets, we arehe sense that waiting for more stimulus to come through the pipeline. large caps are also down about .3%. still relatively speaking, pretty stable, compared to what we've seen in chinese markets of late. let as bring in our next guest, joining us here today. is always good to see you. global markets have been pretty volatile. when you look at chinese equities, it seems like some here.as brought forward have we reached an inflection point where some of these government measures are getting some traction? >> yes, it is getting some traction. the chinese market in the mainland three weeks ago, which the bottom for the year, and i think since then, it is healing. we are seeing more and more lsu support especially on sme financing coming through from fortop, and also support

more enterprises, more open-ended reform for companies in china. overall, i would say that as we see more and more policies coming, the market will try to find the bottom and try to stabilize. said the difference between a range and hitting the bottom, so how is drawn out could this process take? there is going to be a lack effect even with the fiscal measures coming through, that we will not be able to see into maybe the second-quarter of next year. the bottom is the lowest point of the market and i can only be verified after a long time. for example, in early 2016 when the market was plunging, we had a circuit breaker incident back then. plunging 8% per day. many people thought that was the bottom for a long time, then two years later, we found out that

is hittingarket those lower than two years ago. so the bottom could only be verified after a while. but the bottom range is a range isthat where the market being priced at a very reasonable valuation, and also growth expectations have become so bad that they can't go much worse from here. then we should start to see the markets turning a corner. rishaad: that is what you said last time you were here as well, that things cannot go much further. as you said come i can before off now. beaten-downe of the sectors, some of the industry groups taking ahead -- we had one company suggesting that people should be looking for tech, but not big tech names, but the ones that are slightly under the radar. what is your feeling on that?

hao: wall, last time i was here it was after the national holiday and the pboc cuts, 100 basis points on rrr. we had a very negative opinion back then and during the week, downhinese mainland market , one of the worst weeks in recent history. then, we discussed that there is limited opportunity, given the risk that you have to undertake at that level. three weeks,fter with so much policy coming from the top come i think it is actually looking better than when i was here last time. also, with the tech names we have seen doing the inputting of the conference, the president xi unveiled an ambitious plan to launch a technology report. that is a show of support and confidence from the top to boost

the technology sector, and that is the reason why in recent market volatility, but china now,ts, chinese nasdaq for it is a best-performing sector, .robably globally rishaad: what about the overall --ket? how much of it is in how much of it is a liquidity cute and when are the rrr going to start to make themselves felt. , or has itone so ib?n a bit of a damp squ hao: we not seeing any liquidity cut, androm the rrr also from the central bank be expanding and accepting lower quality collateral for banks to lend money. the effectst seen

from the policy just yet, in the monetary statistics. having said that, though, we have to realize that much of the policy came out in the second half of october. so much of the numbers we saw last night are showing the impact of the first half of that, which is slowing down dramatically. the recent policy rolled out and the market expectations are being revised up, looking for a better number, but given that for much of october, we still are not seeing much policy -- irt, i think -- plus think that is why we saw a very weak lending number last night. yvonne: it raises the issue, though, were these private firms will get funding. the pboc this week had to dial back on its most of lending targets for much of these private enterprises. we saw the market really not lysing the deal.

is that achievable, still? without building up on these budget concerns? hao: i would interpret those -- that rhetoric as rules, rather than policies. you have all the guidance from the top saying that you should lend money to the smaller enterprises. cbicsnk governors, the have to show that there are doing to the system. the u.s. system has checks and balances, the cheney system is all things. thus the chinese system is a mix[laughter] so i would say that the market in not like it. that is where we do not there -- that is where we see the regulators backing off from those policies. yvonne: in terms of concerns of locking up the market, we see

china actually trying to liberalize the market as well. overall, trading suspensions regime, they are devasting the funds, it and looks ago good sign that markets are opening up . is it a healthy sign to you, that we can keep equity flows going? we: yes, i think next year, will see more inclusion for chinese equities into the global index. the thing with the chinese market is that even though it is very volatile, it is less correlated with the global market. so if you are a global hedge fund manager looking for on correlated trade besides of the potential return you can have at --s valuation level especially at a time when global acids are very expensive. you look at the u.s. market -- global acids are very expensive. the u.s. market is correcting right now in part because of high valuation. u.s. bonds are very expensive as well. the u.s. housing is also expensive, although not as

housing. as chinese yvonne: it is nice to hear you be more positive these days. it looks like things are turning around. thank you for joining us. "bloomberg markets -- the summit is going on this week, and we know that president trump is a no-show. , how are they seeing that? haslinda: you could say that it is coming as a question mark for both of them best for most of them. u.s. how dirty pulled out of the tpp, there are questions about trade engagement in this part of the world, and they are in the middle of a trade war with china. so there are lots of questions as to whether the u.s. remains committed in this part of the world. also, the u.s. is being represented by vice president

mike pence and if you are confident that he can fill the void left by president trump. messageaid that, what can he send to asean to a lady concerns? take a listen. >> from a business point of view, the trade war is really having an impact here in asean. we are seeing a positive effect as people look to asean to mitigate attention in the trade industry and the supply chain come out of china. haslinda: great concerns about developing nations going that unilateral way, versus the multilateral way, that is a big issue right now, yvonne. thisad: very quickly, china-backed trade deal being put on the black dust back

burner, where is that? burner, why is that? haslinda: they say it does not reflect the interest of the sme's, just the mncs. india would like more stability for their labor. so it has been pushed back. more time to maturity becomes a more meaningful agreement. so we're looking at a deadline of the second half of next year, rishaad. international correspondent for southeast asia haslinda amin therefore bloomberg. let us look at what is becoming a rather crude story, the details from sydney and the first word news with paul allen. paul: thanks, rishaad. oil slumped the most in 10 years. demand fort sees it crude falling even faster than expected next year. the monthly report highlights of the slowing global economy and

surging supplies from independent producers. they announced that opec's next meeting in vienna will be next month. the australian prime minister is reported to be preparing a fund worth $2 billion for 1.5 -- or 1.5 billion u.s. dollars to boost funding for small and medium-size enterprises. the government will weigh packages of secured and unsecured sme loans which will provide lower borrowing costs. the official announcement is expected wednesday. the u.s. judge has shed jeweled a wednesday hearing on the inez priest each lawsuit against president trump. the network is hard attorneys who have supreme court wins, including george w. bush's lawyer in the landmark case that house. to the white trump's chief of staff, john kelly and press secretary sarah sanders, are alleged to have acted unconstitutionally right revoking the credentials of

reporter jim acosta. the upper part of 5th avenue in manhattan is no longer the world's most expensive street for store rents. that no cause passes to a street in hong kong. streets in hong kong, milan and london round out the top five. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am paul allen. this is bloomberg. ♪ rishaad: coming up, the rise of the machines. live at the j.p. morgan global tmc conference. we will be speaking to my next guest about his company's plan to deliver your food and perhaps in the future, deploy robots to do so. this is bloomberg. ♪

♪

rishaad: let us turn our focus now to a company that is suddenly disrupting the food industry and the food-delivery industry, i should say. warner bros., one of them -- woowa brothers corp , perhaps the most popular food-delivery at. i am speaking to the cfo and --sean fficer shaun oh. met as to about what you do first of all the riyadh >> we the fastest growing food-delivery company in korea, which means a lot, because korea is a huge market. on the a few people know that korea is one of the third-largest food-delivery market next to china and the ..s. korea

the size of the korean market is a must comparable to that of the u.k., germany and french market combined. rishaad: 68,000 restaurants on your app as well, that is incredible. more variety, it is presumed. sean: yes. rishaad: so to me, what is your unique selling went? we have a great user experience. from the beginning of our service, we put the focus on theg in numerous marketing, resonate especially well with the young population in korea. rishaad: what about the likes of your competitors, they also have the same thing every at they have apps as well and are trying to greet a unique user experience as well. in terms of optionality,

there is little difference between the players, but it is just like any other consumer product or service. at the end of the day, the branding is key. you have to attract consumers. rishaad: how do you grow the business further? is there expansion overseas, perhaps? sean: definitely. up until now, we had been focused on the domestic market, but we are seeking growth opportunities beyond korea now. have scanned asian markets for potential interest and we have prioritized some of them, and hopefully we will be a what show some activity soon. now, don'tat about be shy? sean: first of all, we thinking about entering the vietnamese , the taiwaneseo market and the japanese market as well. rishaad: ultimately, you need more money. if you do, do you go for another

round of funding? i know that you got $31 million in october, do you need more, or do you just go straight into rotation? sean: we are quite profitable, actually. with the cash flow from our own business, we can sufficiently fund our expansion. the shortage of cash without the ,ey objective of fundraising but as our shareholders become we're always interested in talking to potential long-term investors who can support our vision and goals. rishaad: tell me about the future of food-delivery and robotics. i think we have something that is in its infancy, let's put it that way. it is only a concept at the moment. tell me about the robotic how it would work. sean: we have a prototype of robots, some of the large franchise restaurants around the

area, and the rising delivery are becoming unpopular in expanding the business. also, recruiting enough number of labour people, training them to maintain a certain level of service with desire is becoming also very difficult. rishaad: would you be looking at well? as sean: we are more about ground rather than drones, we think it would be congested. rishaad: what about the ecosystem for startup and south korea at the moment, isn't it strange that there are no unicorns at the moment? sean: you know, like any other community in south korea is also pretty booming, we are one of the representative countries in korea's community. we have great companies with great ideas and russian.

rishaad: no unicorns, though. will you be the first? sean: actually, i think we are larger than unicorns,. rishaad: you think you are unicorn?an a sean: unicorn? sean: definitely. rishaad: so over $1 billion? sean: larger than that. rishaad: there you go, you heard it first. oh.k you very much, sean back to you, yvonne. yvonne: i look forward to those robots delivering my food. interesting stuff. this is a live picture of singapore, the big event at the asean summit. chinaso the summit in getting underway, the premier is there, one can shun, next to the qishan in -- wang ingeborg, they're about to get underway.

let us get you the latest on the -- on what the premier could be session. this in terms of movers in particular, v are following the oil price after the biggest drop in three years in brent crude reedit we are seeing the likes of the income transfer, really benefiting the airline sector in particular. take a look at air china, korea china up close to 8%. singapore airlines also bucking the gains, when it came to profit. profit tumbling more than 80%, they have been damped by the oil costs. they do say that we could have a theund in the later part of year periodic of course, we're talking about brent crude prices weakening despite saudi arabia's plans to cut production.

we have more to come, this is bloomberg. ♪

♪ yvonne: a quick check on the latest business flash headlines. boeing slumped on week deliveries for their cash cow plane, on worries about security. low shipments last month are at risk of missing annual target as it tries to overcome part shortages that have slowed production. bloomberg intelligence as they nextto deliver 72 737s month and the next to hit targets. a threat to them been on the .orld word -- oneworld alliance comments are a further deterioration with relations

with qantas. he said that there is no point in being oneworld if other partners of your qatar as a threat. the cofounder and chief executive of indian e-commerce flipkart hasflip resigned after allegations of sexual assault elliott he stepped down after an independent inquiry on the allegations, which he denies. the allegations are said to have been from a former employee. coming up, plenty of data coming through other top of the hour, also, plenty of guests throughout the session. our next guest brings us his investment outlook in a few minutes. later on, the chairman of the chinese electric car startup -- the chairman of a chinese electric car startup brings us his view as well. a couple minutes time.

we have plenty more. this is bloomberg. ♪

♪ yvonne: 10:00 a.m. in hong kong. welcome to "bloomberg markets: asia." a gloomy outlook from opec. investors see how has the u.s. confirms the white house is talking to china at levels" and tree will be discussed when president trump and president xi jinping meet. toid: china has promised improve funding for businesses. we will discuss that topic here in hong kong.

yvonne: we are moments away from chinese data for october. retail sales, missing the mark, year on year 8.6% growth, 9.2%.tes were flat at industrial production slightly better than expected, 5.9%. expecting a 5.8% . let's bring in our chief asia economic correspondent to break down the data.