haidi: good morning. asia's markets have just opened for trade. and i'm sophie kamaruddin. welcome to "daybreak: asia." haidi: our top story this friday. looking to extend that rally. watch out for a chipmakers. still planning higher tariffs on china in a matter what happens at the g20 talks later this month. sterling falls and

theresa may bowing to fight on. u.s. futures under pressure right now. the s&p 500 gaining the most in one week, rebounding from five sessions of losses. let's see how all of this will affect the stock market. sophie. we are seeing a mixed picture at the start of trading in tokyo. nikkei 225 opening. keenly shares have pointed to losses set for decline. gaining ground up 2/10 of 1%. it is set for the first three week in advance since june. lowering their gdp for -- growth

forecast, tightening financial conditions. october export data from singapore. this comes for asia's worst-performing quarter to date. when it comes to stocks to watch in the region, keep an eye on japanese machinery makers. off by 1.3% this morning. softbank under pressure. in nvidia. stake sk hynix gaining some ground. this after s&p lifted to positive. worth of7.5 billion bonds just shy of the corporate bond sale and less than the

expected. helping to pay for the acquisition. the brexit fallout is being felt. this is one of the so-called challenger banks in the u. lendersp says smaller would feel the most pain from any downturn. haidi: sophie kamaruddin in hong kong. let's get more. the british parliament on a roller coaster ride. let's take a look at what to expect. we are joined by mark. of whatthis flowchart the various possibilities are. it is anything but binary. the pound is pretty much untreatable at this point. is a fair reflection of

how people feel. one of the reasons why volatility is so high, there are too many scenarios. the more scenarios you give to price in, the higher the volatility and the weaker the currency will be. it, these arebout the kinds of things going through their minds. if it does not survive, who will be the new leader? will they support the brexit deal this week or go for a new deal? or will they go for a no deal brexit? they could call elections or a second referendum. there are so many permutations coming into play that makes it very disconcerting for people trying to make an opinion. in the short-term, all the confusion just means that people get defensive and do not want to be involved in the pound.

a bad thing and volatility goes up. traders can anchor themselves, this is the direction the u.k. is taking. it is all very confusing. the pound is the loser. terms of what else we are looking out for, we have noticed a pickup in emerging markets on the back of these aggressive moves from the likes of the philippine central bank. one of the good things in the background is that the dollar appears to be peaking. it is good, especially for asia. it is one of the currencies leading the rebound. it has held on to those gains. that is a good sign. you extrapolate that across the asian base, the asian currency starts to get a little traction.

it will be good for the bond markets as well. if we are seeing a turnaround in the dollar, that has to be good news across asia. they have been relatively early with the tightening sequence. they might have done enough to stabilize the currencies. potentially a good year for asia. shery: the nikkei is under pressure in early trade. you can see the downtrend on the topics which has fallen about 15% and moving closer to that bear market. thedissect what is moving market and there are all these trade data. trade headlines. on wall street, investors were out where to take

the markets, given everything going on with brexit as well. digestl asian investors the information? particular, we thatoping in this meeting the u.s. would approach them with something to do with a trade deal. that does not appear to have happened so far. japan is still waiting to hear what direction they want to take the trade agreements. japanese equity market is a bit like the chinese situation as well. some is waiting to hear if of the concessions they are willing to make will be received well by the u.s. there are a lot of trade issues overhanging the market and asia in general until these things are cleared up. investors will not get too excited about the outlook for their market.

what direction you go in terms of individual agreements or broad agreement are all important. thank you so much for that. commerce of secretary says a trade deal with china is impossible despite the planned g20 meeting between president trump and xi jinping. really, the u.s. is not setting high expectations for this meeting. what could we get out of the g20? >> i think wilbur was doing two things. on one hand, he was trying to set expectations for american constituents. americanslew of citizens criticizing the policy that the administration is taking saying that at best, it

will be ineffective and at worst , it will be self-destructive. wilbur is speaking to american constituents on one hand and to follow up, i think he is talking to the chinese as well. you gave us this list of concessions that you are considering, well they are so far from what we need to see in terms of doing a deal that right now, the best i can say is the best hope is the framework. that is all that we can hope for later this month. shery: we also heard the ambassador denying a report that higher tariffs are on hold. just another case of miscommunication within the white house, within the trump administration? >> know. i think that is right out of trump's playbook. againining that path

leverage over china. if the u.s. were to back down and they we are going to put this further increase on hold, china could relax a little bit. i think trump wants to maintain that leverage going into the talks in argentina. haidi: we appreciate your time. let's get you to first word news with jenna dagenhart. jenna: north korean tv has announced the successful test of a new high-tech strategic weapon. korea monitored by south 's agency. identifying unidentified missile bases. president trump said the u.s. was fully aware of them and that negotiations remain on track. a new plan would be rejected by the british public.

to-one. is opposed almost half of u.k. voters now want a second referendum. thinks thatne in 10 the u.k. will win a good deal. a hard brexit is now looking very tangible. sanctionss imposing on 17 saudi arabian officials over the murder of journalist jamal khashoggi. it is after the kingdom charged 11 people in the killing. level, from the highest but it was a rogue operation that went wrong. david solomonceo says he is personally outraged that the bank is linked in any way with a multibillion dollar scandal in malaysia. threeled the behavior of

individuals reprehensible. it tumbled the most in seven years when malaysia amended a full refund. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jenna dagenhart. this is bloomberg. still ahead, we are live at the summit in caps on gini. -- popeye new guinea. papau new guinea. home market is looking more risky at this point. this is bloomberg. ♪ is bloomberg.

♪

shery: this is "daybreak: asia."

haidi: let's get back to new guinea. taking aim at local business and political leaders are gathering together. our correspondent stephen engle off the coast with our next guest. we are aboard the pacific explorer, a cruiseship. o'brien.re with dennis predominant of a network here. quite an empire you have. you are also ireland's richest man. start with the chaos that is instilling right now. you said in january that the

thatt was like dunkirk without the votes. how do you feel after watching it all night on your television? >> the u.k. looks like an emerging market. there is so much chaos because of the number of people that have resigned from the cabinet overnight. person, you racing would have to say that it is going to be difficult for her to approve the deal at this stage. >> how does the deal she has struck stick with you? >> it is the best of a bad deal. i think our own foreign ministry in ireland did a terrific job in making sure to keep that central stage because this all goes back to the peace agreement, the good friday agreement.

it is not just trade, it is also political as well. >> how do you think dublin would fare in this situation. would note said it learn is many financials as thought. >> i think we have enough at the moment. another major banks and investment houses. we cannot absorb it from a housing point of view. it is not equipped to regulate the scale of the balance sheets. i think we have enough investment now. some of the other countries and cities like amsterdam. >> i want to talk about the new business here, but if you are a betting man, is this deal as it stands second referendum? >> at a she will lose the vote in the parliament and potentially, there could be a

general election. after that, it is no man's land. jeremy corbyn has been playing a very clever game politically. he left it to everybody else. he is a halfhearted pro-european. your mobilek about empire you have built here. into the bonds. you have another deadline november 30. just taking our 2020 bonds by two years. same interest rate. probably a little more security as well. from our point of view, we knew we knew itrted this,

was going to take a long time because you have so many different views of people and we are trying to find a consensus that we are happy with. the conversations are going well, it is just reading everybody with you is what it was all about. >> do think there was a lot of bad luck? the strength of the dollar, you are very highly leveraged. >> what people forget is that we have spent $2.3 billion in the last four years. diverse and -- diversifying away upm mobile, building entertainment. all of that is really good for the future. we are monetizing and seeing growth coming into those new business lines. growing 20% for us. we are happy with where they are going. we can increase the profitability. >> if you cannot find wiggle

room in these negotiations, our assets held a possibility? where? we have a network. we have six countries. we have the caribbean business, which is a big network. i would not will it out, maybe small sales. monetize a financial business as well. we are very flexible. >> how about p&g? you do have a monopoly here. plastic -- a five fantastic place to do business. a direct investor friendly come -- country. this morning we have an announcement from total.

15 to 19 billion. it is huge and the expiration sector. every conceivable resource. everything. for foreign direct investors, it is a safe environment to invest in because it is pro-business, pro-enterprise and has from the policies. >> an hour from now, we will be talking to the oil ceo about that deal with total and axon. keep it right here on bloomberg television. we have pretty much exclusive coverage. looking forward to all of those interviews. coming up next, in the wake of the devastating fires in california, the regulator is

commenting on the future of pg&e. this is bloomberg. ♪

shery: this is "daybreak: asia." california utility pg&e after bank of america set fees about the links to the companies involvement in wildfires. it says the stock may be downgraded. there are looking into whether the equipment and united one of the blazes. more on the story. marx, we have been hearing from the public utilities commission saying that a bankruptcy for the company would not be in their best interest. >> i spoke with the president of

utilities commission and chief regulator, and he basically told me he does not think it is in the best interest to let the largest electricity provider go bankrupt. they will look at ways to help 15m pay for what could be billion or more in liability costs. talking about that plus the 2017 wildfires. isn't this a huge number? when are we expecting the impact of this to hit the company? we are looking at more than $30 billion in liabilities for the company and the market cap is somewhere around $12 billion. this is a huge financial burden. i think a lot of lawmakers and regulators are starting to the

realize that the company will need help. haidi: if the health comes through, is that likely to be enough to sharpen investor confidence? depends. it could take time for legislation to pass. investors need to be a little patient. it would depend on the nature of legislation that passes. we will have to see what and how quickly they want to give help. shery: what about that law about theg bonds to pay for liabilities? >> that is correct. it passed a law that allowed 2017to pass on's for the wildfires.

that did not address 2018 wildfires. now they are facing massive liabilities from those fires. they will have to pass some sort of measure to allow them to sell bonds for the 2018 fires. thank you so much with the latest on pgd and being affected by those california wildfires. we are still waiting for president xi jinping to make an appearance. that this summit is going on and it is huge for president xi jinping, a time for him to shine, investing so much almost $6luding million for infrastructure spending. we are still waiting. in comparison, it is smaller than every u.s. state.

this battle for influence between washington and china. next,onp geopolitics. 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.

shery: we are getting breaking news out of singapore right now. imports,tting domestic gaining 8.3%. also in line with the previous month of september. .his, a huge beat despite the fact that we had a very high base effect from the year before when we saw exports rising 20%. for a 1%tation was rise in the month of october, but now we are getting this number.

it is always interesting when you look at the breakdown. the component that looks set pharmaceuticals is usually very volatile. seen is a decline in electronics. we are seeing that again in this month's numbers as well. contracting 3.5%. the september number revised even lowered to 1.3%. headline number, electronic export reflecting some of the trade tension and supply chain pressures in this part of the world as a result of the trade war. here is sophie. sophie: not much in the way of reaction. that data from the island city.

we have been talking to policymakers. some of them indicated there might be a revision downward given some of these tensions around trade. that would illustrate that drop off for exports for the month of october. we are seeing asian stocks gaining ground. tech leading the way. the aussie dollar holding steady this morning, set for the first three week advance since june. off by about .7%. giving up some of its overnight gains. considering the extradition of a critic in an effort to encourage turkey to increase pressure on the saudi government. seeing asold we are

jumping. emerging as the second largest shareholder with a 9% stake. it does not have specific plans yet, but it could be shaking up the executive team. in tokyo, set for a fourth day of decline, priced at -- all of which tightened about 10 basis points. highlightt to softbank sliding. it nvidia adding anxiety for the chip industry. also want to highlight that it is looking like deja vu. falling the most since 2016. citigroup says such a move would hurt small lenders the most.

let's get to first word news with jenna dagenhart. jenna: facebook is under fire for how it delivered -- handled fake news, including the use of aggressive tactics. following a scathing new york times reports, they have cut ties with a firm that linked facebook in the knees -- enemies. commerce secretary wilbur ross says the u.s. still plans on raising tariffs in january despite the planned talks between president trump and president xi jinping at the end of the month. they will only discuss big picture items and perhaps produce a framework. january isal by impossible he says. is closingler casino

down until further notice. said repairs are needed after suffering millions of dollars of damage. the shutdown is the latest low for the casino operator. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jenna dagenhart. this is bloomberg. haidi: let's get live. we are seeing chinese president xi jinping arriving for the leaders summit. he may be arriving now, but there are indications if you look at roads, bridges and signage. presence has been felt

for some time. almost $6 billion investing in paupau newuinea -- guinea. they have been in this tug-of-war with washington. shery: president trump did not attend any of the summit in asia this week. vice president mike pence there who met with prime minister witho abe and he will meet president xi jinping. visiting the philippines as well.

really, his star is shining brightly in cap -- new guinea. haidi:really, his star even if k at the smaller things like the shuttles transporting the delegates back and forth, a lot of these meetings are taking place aboard cruise ships. they were being funded by the chinese as well, so their investment and muscle is being flexed. most of the leaders we have shrugging it off and saying it is not an indication of a snub. it is pretty hard to see that his absence is anything other aan just a pivot away or lower prioritization. after the summits in

asia, the focus will be on the g20 and foreign affairs at the end of the month. -- buenos errors res at the end of the month. just a framework for the trade deal. we are headed towards that increase on chinese goods to 25% in january. all eyes will be on that discussion between president trump and president xi jinping. haidi: -- japan may need to wait longer for workers to fill shortages. fewer than a quarter of the people that the country needs to plug the labor shortage.

me with hays joining the latest. issue when ite came to prime minister abe's reelection in japan. that it mightring be a tiny part of the labor shortage. kathleen: this is a sensitive issue in japan. demographics. they have an aging population. it is supposed to shrink dramatically. neede same time, they will some of these workers. what has happened, prime minister abe, we will be showing when he was speaking to parliament recently. he had to dial back the plan. he is proposing to pass legislation by the end of december to allow 345000 and change workers into japan.

he was hoping for a bill that would allow 500,000 workers. people are saying it seems too rushed. there is the sensitive question of is it guest workers or immigration? resistantse have been to foreign workers coming in, despite how much they need it. there is a chart i am going to show you from my library. trying to boost inflation. we need to think about this in the context of what japan needs. see that the unemployment rate is just above 2.2%. 164 jobs open for every 100 workers. this was going to probably be

the most dramatic immigration workers. overhaul. they told the japan chamber of commerce that they have shortages of workers. it is a big deal, but this is as much as he can get for now. we also had central-bank hiking. on top of that, we have gdp coming out. kathleen: let's take a look. they had some pretty good news. gdp was supposed to rebound a little bit. fuel subsidies helping as well. that the second quarter went down to 4.5. maybe it will be stronger than expected. willr oil prices potentially be helping malaysia in the third quarter. we see the big pullback.

late hit confidence for business investment? pretty much widely expected, not to make any change in its key rate, like its counterpart until maybe 2019 towards the end. the battle between the modi government and central bank independence seems to be coming to a head. there is this -- it is a time where the banking system needs them. the board of the reserve bank onl be working -- meeting monday, november 19. they might hammer out some way to deal with this question, which is very technical. it has led to so much dissension and dispute.

the minister of finance is critical. interesting. i was so struck by a piece that was published today. they say the government is launching an all out assault on the r.b.i., not just with the question of capital reserves and trying to get capital reserves back in the system, but that they do not want them raising rates and pushing so hard for the big banks to clean up their loans. a lot of people are saying it will play out slowly. that even with this big board meeting, there will be more discussions afterwards. a lot of people say they want to hold on to the reserves. in case they need them to defend the rupee again. you can understand where a lot of the push and pull is coming

from. trying to make the economy look better. coming up next, leaders gathering in new guinea. raymond joins us to talk about the business strategy. this is bloomberg. ♪

haidi: this is "daybreak: asia." shery: let's return to a report from cap l new guinea -- from new guinea. stephen engle is there for us. you have a special guest there. >> we do. ofhave the chairman asia-pacific and greater china.

partner ofknowledge the ceo summit kicking off in full swing today. raymond, thank you for joining us here. what was the main takeaway of this survey that you did across the asia-pacific? it was started in may and it ended midsummer, just as the trade tensions are starting to bubble. >> it is great to be here. we do a survey for the summit every year. this year makes it very interesting with what is happening around the world these days. our survey covered close to 1200 covering all 21 economies. >> how fearful are they? the risk and appetite, given the uncertainty.

the two largest economies of the world engaging in a trade war. >> i think the ceos are very agile and the in depth. they look at a very clearly challenging situation. it is going to affect everybody, but there are opportunities. ceos are looking at opportunities. we look at the survey results covered from early may to around early mid july. prior to that, there were a lot of trade tensions. 6 was the early implementation of the u.s. tariffs on goods. if you look at the early results, the good news is, 35% of the ceos across the economies

remain very confident about revenue growth over the next 12 months. >> what about the other 65? >> 35 is very high. that is a pretty big number. compare that to last year. it is not big at all given what is going on. number,deeper into that you see some big differences. if you look at the u.s., the time and ceos -- they are very confident. you are talking about 57%. >> what about china? >> china is the other side of the spectrum, which is in the 20's. mexico is 21%. much lower than the average. >> two nations in the crosshairs

of donald trump. they are uncertain. they plan to raise investment levels. that is a number that has gone up. wherehey reallocated business might go? me they are not just sitting on their hands and waiting. allocating and looking at where the opportunities are. of 51% of these ceos saying i will increase the level investments over the next 12 months? that is a pretty good answer. it tells you that the ceos are not sitting there and waiting for an impact. they are aggressively looking at their strategy, how do they put their investments to maximize profits going forward. , where are the talk

they putting their investments. an alternative to china? or china's own merit? >> it could be an alternative to china. >> very quickly. they are facing more barriers in border trade. is that indicating that protectionism is on the rise? >> that number is pretty consistent to last year. it is not saying that it is getting worse, but there are certain areas where it is worse than before. is this movement of , you canss borders probably understand why. china's cybersecurity law.

adjustinganies are their data strategy. how do you ensure you comply with the new laws and rules to manage that data, which is very important in terms of moving that around. >> we will do it again next year. here at the summit that is just kicking off. back to you. shery: thank you so much. the philippines largest fast food chain is continuing its push into the u.s. with the opening of a new restaurant in new york city. the company'sbout ambitions. anti-fascist -- the largest and fastest growing company in the world.

with two ice cream parlors. philippines and the u.s. we want to replicate the success in the philippines to the u.s. strong organic growth. majoritys., the ownership of smash burger. world-renowned chef. we are opening our first store in manhattan. 37 stores. we plan to open 150 stores in the next few years. shery: how much do international sales depend on filipinos? do you include locals in your

overseas markets? we go to where the large filipino communities are. serving, we are manhattanlorida, even and houston, texas. we have seen more americans visiting our stores. they want come almost 50% of our customers are mainstream americans. >> you are going up against big restaurants. people have compared you to kentucky fried chicken, but there are others in the category. >> is a unique proposition.

we have our product. juicy delicious on the inside and crunchy delicious on the outside. real mangoes from the philippines. the best mangoes in the world. >> how much d need to deploy to do the six mansion? there will be some capital expenditures. is it a big number for you? >> it is. we continue to ask and. intend to extend our stores u.s. >> what is the timeframe for that? >> we looking at the next five years. we also observed the mainstream

market customers. year, they sent two and they voted as the best chicken in hong kong. what kind of rollout timing are you looking for to get to maximum capacity or ideal capacity in the markets? >> the fried chicken market in the u.s. is huge. this is the first leg of our journey to be one of the major players in the fried chicken market. shery: that was the ceo. now bringing in david ingles. besteo talking about the chicken in hong kong. i have not tried it. have you? yvonne is answering for me.

if you partake of the fried , it wouldten enough not only be the joy that will be expanding. it is delicious and also oily. we do not care about diets on a friday. i know you are ordering it in the office. much more coming up. bloomberg markets is next. this is bloomberg. ♪

>> 9 a.m. in hong kong and shanghai. this is bloomberg markets. asia-pacific equities struggled to round out the week with games. early optimism about trade tensions is starting to drain away. at the u.s. is supposed to pass higher tariffs on china to matter what happens. says u.k. voters may reject theresa may's brexit deal. ♪

shery: it seems like that trade optimism is fizzling out right now. you have to wonder how long these gains could actually carry. david: have we seen the worst? go up inl see tariffs january as well. >> you have to look at larry kudlow at all levels. atre just taking a look nvidia. how is taiwan doing? what do we have at the moment? 9/10 of 1% there. tsmc is the biggie.

that is falling after a luck plaster -- look lester nvidia nvidiat -- lackluster forecast. $1.2784. theio is worth 88.6 pence at moment. yen buying one pound as well. the sterling back 1.5%. resignations from theresa may's cabinet prompted the selloff in sterling. there is speculation the government could fall apart on the brexit deal agreed upon. that's what we have. have inwhat we anticipation of the trading day.

five days of losses in new york. gains?th day, seeing a little bit of a tailwind for what is happening here with the .ang seng geopolitics and politics, presumably the also for the markets today. avid: let's get back to the trade war between the two largest economies in the world. we have a meeting underway in papa new guinea. >> the chinese president is expected to take center stage. about the u.s.s administration's ambitious plans

to counteract the belt and road initiative. steve, taken away. -- take it away. steve: we are aboard the pacific explorer. see -- inthe coral the coral sea in the south pacific. the chinese president flew in last night. apecf the first leaders of to arrive will be talking with some pacific island leaders. donald trump is not attending. mike pence will be here. but he is not staying on either of the three ships. he will be flying in and out over the weekend.

other world leaders will be here as well. that includes the australian prime minister. chinese investment is at the forefront. chinese flags are flying along the roads. you could see prime minister kuroda with president xi. chinese estate railway construction can be seen off the side of the ship -here. millions of dollars is definitely flowing into papa new guinea, as well as australian money. the area around for new guinea is a competitive zone for influence the between australia, u.s.,tween australia, the and china. we have news in the past 24 h

memorandum of a signing between the papa new guinea government and oil giants, including exxon. we have peter with us. thanks so much. how does this mou resolve some of the first deal you had that started in 2014? successful, but there were complaints as well. now you are getting into the exxon operating downstream of popular -- papua lng. peter: this is the fiscal regime for the second png-lng project. it sets the fiscal terms.

at other benefits to the country, such as domestic ,arket obligations petrochemicals, etc. the government wants to have more value stay-at-home. it is very important to have more energy into the burgeoning markets. but we also want to the local businesspeople to get maximum benefit from this next phase. steve: this is a very hard sticking point, i the government and negotiations, -- by the government and negotiations, that papa new guinea and gets better benefit -- gets better benefit.

what's in store for the first phase? -- contestree with with some of that analysis. but there is real concerns by developers and government and the communities to see industry growing in proper new guinea -- guinea.w the agreement with the state allows an equitable split of value between the state and developers. it gives the developer certainty around tax rates. it gives the government levels of certainty about how and when the tax comes.

it addresses issues of national content. steve: does this increase the government through the investment arm? 15.8% was the initial phase. ter: there is the option to exercise 22.5%. a certain percentage will go to project landowners. 42.5% will be taken in this by the people i represent. steve: this would be used for power plants and domestic development? peter: there is a focus on providing for the local market.

there needs to be a reservation of gas for domestic industry development. power is one of those things. it is definitely a focus in the medium-term. petrochemicals and other industries that can actually grow with the ability to competitively priced gas. -- price gas. steve: on the short-term, we are expecting a mild winter in asia. the chinese economy is slowing. what is your outlook for lng? peter: we've seen extraordinary growth in the past couple of years. what seemed to be an oversupply is being rapidly eroded by a supply and demand situation.

we expect a balanced market probably in the next two or three years. and then probably a tight market going through 2023-2025. but we know there are a loss of projects coming through in the next two years. that could lead to an oversupply. steve: you are still a few years from getting a new supply in? peter: this is a five or six year cycle. steve: peter, thank you for your time. from papua new guinea. peter botten joining us

there. xi is expected to make an address in popper new guinea soon. david: let's go to paul allen in sydney. aul: north korean state television has announced the successful test of a new high-tech strategic weapon. the forecast was monitored. earlier this week president trump played down a report for defying hundred undeclared north korean missile bases. he says negotiations with kim jong owns regime remain on trac k. facebook is under fire for how it handles aggressive misinformation, including the use of tactics to handle aggressive opponents.

accusackerberg insists tions of anti-semitism are unfair. to suggest we weren't interested in knowing the truth or that we wanted to hide what we knew or tried to prevent investigations is simply untrue. paul: the united states is imposing sanctions on saudi arabia and officials over the murder of journalist -- arabian officials over the murder of journalist jamal khashoggi. turkey says the order to murder the highest levels. saudi arabia says it was an operation that went wrong. says his bank is outraged -- he is outraged that his bank is a link to any way with the scandals in malaysia.

its stock tumbled the most in seven years on monday. global news on air, 24 hours a day and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. allen.l this is bloomberg. yvonne: still ahead, more from the summit in papa new guinea. david: plus, how donald trump's -- e war could affect the platform.rgest b2b this is bloomberg. ♪ ♪

taking you to some live pictures out of port moresby. just stepped to the

podium to deliver his speech. this is the first to such visit -- such visit by a chinese president. region has been felt in popper new guinea -- papua new guinea. the absence of president trump is given the opportunity for president xi to shine. get more from there. we want to follow that speech. war has generated major uncertainty of across global supply chains -- u ncertainty across global supply chains. presss. may actually ahead with higher tariffs, no matter what happens. there is an e-commerce

platform providing cross-border services. and alibaba are among its competitors. engel is at port moresby. take it away. wong is sitting here with me. welcome to papua new guinea. about thest talking trade war and the backstory to all of these discussions. what do you provide a platform for?

diana: i think trade tensions will speed up the process. -- the process of looking at business in new ways. consensus against protectionism. we believe digital globalization reates -- that creates more jobs. stephen: you think trade tensions are a springboard for china to focus on innovation, more so than relying on tradiational forms of trade?

exatly. sme's needed to find new ways to survive. traders were hurt badly. -- to doay to bo business is e-commerce. sme's in china sold worth ofbillion goods worldwide. provide alternative ways to do business. i think cross border is the answer.

stephen: the trade war will be escalated in january. it is taking a lot of products made in small factories throughout southern china. are they getting enough support from the government? the government talks about needing to support the private enterprise. is there going to be paying? -- pain? diane: i think there is a lot of concerns around sme's. in china, in the past two years there have been a lot of to encourage businesses to upgrade. believegly

micro-enterprises need cross border platforms to go global. it brings buyers and the sellers together and reduces costs for perform global trade. stephen: digitization is a big thing. you are one of the pioneers of the internet economy, along with jack and tony ma and others. you have seen this go from low regulation and explosive growth to the point bridge you have market share and scale -- where you have market share and scale. jack ma said, the higher you go, the less oxygen. see this regulation in china and elsewhere possibly limiting the growth?

is that a struggle? in china, behind sme's, support strong policy for them to go global using digital platforms. i saw recently a newly released apec report on how to realize the untapped potential s of apec sme's. the report talks about streamlining sme's and helping 82% anduce costs up to increasing the number of economies reached.

this would also encourage women-led sme participation. stephen: supposedly, some say we are in the early days of this trade friction. do you see buyers and sellers in china changing their markets? do you see them relying so much on the united states? diane: what is going on between the manufacturers and the traders has not affected business yet.

maybe businesses can be upgraded reng digital platforms to duce costs or think about migrating to other markets in terms of the lower costs in the production line. thinkinge proactively about new approaches. stephen: diane, thank you so much for your time. sneding it back to you. -- sending it back to you. yvonne: let's bring you the numbers that came out a couple of minutes ago. 693.77. forave seen dollar weakness a fourth straight day, but a bit stable us -- a bit of stabilization when it comes to the currency. david: rishaad is at the big

screen. rishaad: we have had quite a lot of news that has come through at the moment. let's have a look at some of these casino stocks. off by being brushed investors. let's have a look at what else is happening. we do have these other companies that are on the move. u.s. is closing up 2.4%. quickly, petro-china. one is upgraded, one downgraded.

you would not know which one. byd is getting an upgrade, half of 1%. the open proper is next. ♪

a.m. friday morning in hong kong. we have seen trade optimism waning during the asian session. mixed messages when it comes to trade. laying out were concessions with the trump administration. wilbur ross said this will likely be a framework to be worked out.

u.s. is still planning to hike tariffs to 25%. david: just paring back the expectations of one we do get a trade. let's get to the open. things are getting underway. quite a few moving parts. china's shanghai composite is flat. $26.69. helpingok at the movers to drive what is going on. we have also been talking about politics. this company may not be able to repay some of the loans it has taken out. china's shipbuilding, moving to the upside, some changes there.

education out to the stocks. 4% here. i don't know why a glasswork company is there when we are talking about education companies. we have the prospect of diva regulating kindergartners -- the inegulation of kindergartens china that is responsible for these numbers. to thisck it out interest rate decision coming out of the philippines. the banks are lifting weights up to four and three quarters of 1%. it looks like the roof is falling down on us. there is a composite up by 9/10 of 1% and the peso is trading at 67 against the dollar.

david: markets are steady. out is how badly these education related stocks are getting hit, especially in hong kong. there are new rules. company, youlisted will be prohibited from investing in for-profit kindergartens. we will try to understand what this means. yvonne: it seems as if china is trying to build more public kindergartens. they want these public preschools to educate have to students by 2020. these are the targets that were laid out in these guidelines

that was published. want this universal preschool education in the country by 2035. there are measures to get to that point. china is really getting hit by this news. at the private equity and venture capital forum this week. educatione and also was a very hot topic. this is the perception of them being no-lose bets. perception and regulation in this tangible case weighs on investments. yvonne: everyone keeps talking

about how the consumer sector is such the big thing to look at for next year. china is the place to go to get shelter in these volatile markets, and you still see the risk. let's get you to the first word news. softbank is adding to concerns that american demand is pointing in the trade war. has issued three to five floating rates to do with its new york branch. offering from china last month also saw diminished american demand as trade tensions escalated. there is worded theresa may's brexit plan will be rejected by the british public. this is after the draft deal was announced. suggests, half

of u.k. voters want a second referendum. bank says a hard brexit is looking very tangible. i am going to do my job of getting the best deal that is in the national interest. need to look at a deal and consider our duty to deliver on that vote. &e soared in late trading in a week after they saw losses of more than 60%. bank of america said fears about the company's link to wildfires is over donna. aa-#.as cut to looking at whether

it's equipment ignited one of the places. an annual launch record has matched with time to spare. flacon -- falcon 9 rockets are said to be carrying satellites that will improve broadband conductivity -- connectivity across the world. space x's run of 18 successful has liftedis year its valuation to 28 billion u.s. dollars. the agenda is now being discussed for the meeting between president trump and president xi at g20. wilbur ross says achieving a trade deal by january is impossible. david: there are essentially plans to raise tariffs on chinese imports at the beginning of next year.

let's have a look at the implications on all of this. our asian government managing editor is with us in sydney. what kind of expectations are the likes of wilbur ross pointing to? they are certainly lowering expectations if anyone thinks we are going to have this kind of deal. the best thing to do is have a framework that comes up with trade talks. they are questioning whether trade would come up in the meetings. that is positive. there is a one way to go. we mentioned earlier this week about china, laying outcomes -- some concessions. we from what are china wants and what the u.s. wants? >> very far apart.

the concessions they are outlining are not really touching the core issues the trump administration them to go after. this includes policies like made in china 2025. china essentially wants a deal where they can buy a want of ands -- lot of goods purchase imports so the trade balance gets narrowed. that does not really address the deeper issues that the business community faces. there is no indication that they are willing to give that up, yet. donald trump says he wants soybeans included in any deal. tell us why? soybeans are the crucial agricultural export to china from the u.s..

the u.s. has offered billions of dollars in aid to farmers affected by this. there are questions about whether that would continue into next year. these are states that trump needs if he wants to win reelection in 2020. it is crucial that trump finds some sort of deal to get these farmers back on track. china has been savvy about how they have been targeting tariffs against the u.s.. after things that they know would impact president trump politically. dan, thank you. coming up, peer-to-peer lenders face greater company -- scruti ny. yvonne: we discussed the industry's future at the apec -- summit, next.

this is bloomberg. ♪

china's peer-to-peer lending industry has faced pressure this year. the government has intensified and strive against financial risk. forrules have been issued his next registrations and a number of failed chinese platforms has surged. the number has gone from less than 100 in 2013 two now more than 4000. investors are rushing to take their money out. david: let's go back to papua summit.ea and the apec discussingaders are a wide range of economic geopolitics.

stephen: i am on the pacific explorer in port moresby. i am going to pick up on the theme of p2p lending business , asthe shakeout going on well as the theme of digitization at apec in the global economy among the 21 member nations of apec. we are glad to welcome the founder and ceo of one of the such leading platforms in china. thank you for joining us. we were just talking about the shakeup going on in p2p lending. there were so many platforms that rushed to market. some of these were due to fraud or other reasons of regulation. how do you see the shakeout playing up? >> we offer much more than

p2p. today, we are a fintech company, covering marketplace lending, insurance technology, and so on. the marketplace industry -- l ending industry and china is experiencing a cleanup. the marketplace going forward will definitely benefit industry leaders. stephen: how do you expect this to be a consolidation? g: work with leaders very -- we work with leaders very closely on industry practices.

stephen: have you seen many platforms hit by higher than expected default rates? have you seen the risky nature of p2p lending? ning: the chinese economy is slowing down, but the quality of growth is much better. summit, we are going to talk about inclusive growth, we will also talk about technology and innovation. we see a lot of opportunities in the new economy. that is what marketplace lending is all about. you have small businesses, local businesses utilizing -- rural businesses utilizing technology to do better. n: this has created create

opportunities for p2p lenders in china. balance tos a finding growth in the burgeoning platforms -- in the burgeoning p2p lending, but that the regulators catch-up. have we seen a crackdown because of concern related to the wealth management products? x there is concern in the tax base. regulation and growth has been the case in china. wants to hina support the private economy. what are you doing to help private business?

ng: you go to chinese restaurants, hotels, hair salons. more often, teh business -- the business is already wired. there is a ton of data about transactions and so on. companies can utilize technology to do much better credit analytics. that's an opportunity to do better small business lending. in rural areas in china, useo-entrepreneurs vehicles to do better agriculture. we invented five years ago

equipment to do agricultural projects so they know how much water is going into the soil. stephen: you have been expanding internationally. you've been helping to facilitate high net worth individuals. we will save that for our next discussion. ning, founder of critease -- creditease in china. rishaad: we have some of the movers out there. of a drag coming through education stocks. if you are a publicly listed kindergarten company -- publicly listed company, you cannot invest in a kindergarten for

profit. shockwaves.me i still don't know why the glasswork company is here. but we all need to have glass to build those schools. this is bloomberg. ♪ ♪ yvonne: just in time for

breakfast. the philippines is continuing its push into the united states with the opening of a new new york city restaurant. david: we were talking earlier about fried chicken. and this company's ambitious efforts abroad. withday it has 14 brands,

over 4300 stores worldwide. it started with two ice cream parlors. three majoron company hopes to replicate the success in the philippines to the united states. acquired thewe majority ownership of smashbur world-renowned chef. jollibee, we are offering our first store in manhattan. we plan to open 150 stores in the next five years. how much do international

sales rely on homesick filipinos? our strategy in the united states is to cross over to the mainstream market. chicago,tores in florida, manhattan, and houston. we have seen more mainstream stores.s visiting our day one, almost 50% of cour -- customers were mainstream americans. >> you are going up ahead in the u.s. and u.k. against big, well-established, quick serve restaurants. people have compared you to kfc.

how do you gain a foothold such players?nst peach mango pie, made of peaches and real mangoes from the philippines. shery: how much d you need to deploy over the next year to do this expansion -- capital do you need to deploy over the next year to do this expansion? we intend to open the next 150 stores in the u.s. and 100 in canada. what's teh time frame? -- the time frame?

>> the next five years. we also serve mainstream market customers in our stores in hong kong. the south china morning news sent two reporters. our spicy chicken the best in hong kong. >> what roll out timing are you looking for to get to ideal capacity in these new markets? ernesto: the fried chicken market in the u.s. is huge. this is just the first leg of our journey, to be one of the major players in the fried chick en market. >> that was the executive director of jollibee. let's have a look at the markets in the philippines.

1.2%,oader index is up 1.3%.probably a weak dollar story . yvonne: we will see how indonesia plays out. thought we were hitting a bit of a paz. inflation it -- a pause. inflation is benign. the rupiah is at 14,600 right now. we have lots to look ahead to. it seems like a central banks are back at it in terms of tightening policy. it seems to be more about being back to preemptive mode. avid: it's been painful, what has happened this year. coming up, hedge funds are facing their worst accra performance in seven years.

they don't stand to lose as much as the broader markets. anotherzto posted quarter of strong growth and we talk to the cfo. this is bloomberg. ♪ ♪

rishaad: it is almost 10:00 a.m.. welcome to "bloomberg markets: asia." ross hitting beijing with higher tariffs. saying a deal by january would be impossible. rishaad: a new poll says u.k. voters would reject theresa may's deal. ♪ rishaad: politics center stage

in the u.k., geopolitics in the shape of this war of words and tariffs between beijing and washington. yvonne: it is interesting to see the push and pull. the optimism on the trade front helping to offset losses, but that is fading. david: we began with the brexit story, now the trade story. rishaad: the education story. david: 15% to 20% drop in hong kong. this is the macro picture across the region. philippines,st is 1.8%. let me get rid of the closed markets. .5%, noures, ftse 100, consis