haidi: good morning. the asian markets have just opened for trade. sophie: welcome to "daybreak: asia." haidi: these are our top stories. a third week of losses. india both closing. it brexit deal with russells. celebrating their alliance.

it fundamentally alters the balance of power. happy thanksgiving to those talking into their turkey. japan and india also off-line. getting a reaction from the latest developments from nissan. we do have trading beginning. the index is up .2%. looking like a mixed bag so far this ride it. we have a light day of dockets. factory, not these much in the way this morning. let's get to first word news with tom mackenzie. tom: goldman sachs says then ceo , allegedeting in 2012

to be at the center of the scandal. are examining the meeting as part of a criminal investigation. money without knowing that it would be diverted. the european central bank says uncertainty over the rule busting budget threatens to damage the economy. italy's current financial conditions are far too tight for a country with their growth. far higher than at the start of the year. president trump says he has closed the border with mexico and authorized the use of lethal force. military could open fire if necessary, claiming

without evidence. the president added that he is prepared to shut down the whole border. prince has begun a trip. his first trip since the murder of jamal khashoggi. sees design toe show that he is not a pariah. 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. and this isenzie bloomberg. haidi: let's get more on what is moving market. european stocks fell and we are watching the assets, seeing

another roller coaster ride. is it smooth sailing ahead? to a lot of people, it is till untreatable. there is still so much volatility. positiven incremental that some people are latching onto. we have had a decent run in sterling. a lot of people think that could go a little further, but the volatility and what the projections in market is showing is that it is sticking around for the pound, which is not going away anytime soon.

and on clear timetable for what happens now, whether this gets done in the next few weeks or whether the holiday period gets pushed out through christmas and new year. questions fort of people. a lot of people want to keep those short edges. it is by no means a done and final deal. a tricky situation with weeks to go before the end of the year. futures are seeing lower. >> it is a tricky set up for the end of the week. people bill -- will be away. u.s. futures look quite a bit lower than what they were when the cash market closed.

the arching concerns that we have seen in equities are still there. the idea that the fed might be the tighterfrom hike expectations for next year, that global growth is an issue on people's radar. a lot of people have dialed back to get me. the question for a lot of people is how much of that is already in the price? a bit of a sentiment, cautious environment. the silver lining is that we going to the g20 with people having dialed back expectations for any kind of reaction. if we get any positive sentiment coming out of the communications , it does leave some room for a

potential rally in risk assets when that happens next week, going into the final weeks of the year. they have been holding out hope for some kind of action in buenos aires. a hint of a silver lining. the sterling rose as the u.k. and eu agreed the final part of their deal. some key political ammunition. let's look at this with our senior international editor, jodi schneider. .ome members were surprised what are we expecting now? they came out and said they had a political deal, but then it leaked. they felt sidelined.

even with angela merkel, they were surprised. the question is whether this for whatlicate things is expected to be rubberstamping of the agreement by the eu members, whether that makes it more contentious. probably not. angela merkel indicated that she wants to come in, leave and get this signed. the eu has been a real driver in the talks. it looks like that will be approved. can theresastion is may get it through a divided parliament? sophie: what is the likely outcome if this does not go through? issue ofis a lingering a possible no-confidence vote for theresa may. they need 48 votes for that.

we are not seen that kind of pressure that we saw last week. if it does not get through there is the question of another kind of deal that they might try to strike. whether people move to try to have a second referendum or whether they are saying a no deal brexit. brexitll be an orderly and allow there to be a benefit for the eu, for the u.k. and eu. it is a better deal than what she would get a few weeks ago. it offers the ability for there trade union, which is what industry wanted. theffers the brexiteers possibility of a trade deal with other countries in the future.

that there would be this indefinite tie to the eu. there are some selling points. it is a better deal for her to sell in parliament that it was a week or two ago. it is a really tough road. it is a divided parliament, a narrow path to getting this through. despite the political backlash he has had, he is not backing down. continuing with this issue about what happened with jamal khashoggi. that's right. and his thanksgiving day press isference that he did, he saying we still do not know what happened.

we still do not have confirmation. he does not think that the cia report said the crown prince was behind this and he said we need saudi arabia. to givei am not willing up those jobs and economic ties. if we did that with any ally in the world, we would not have any allies left. he is doubling down on his comments that he made the other day about saudi arabia being a necessary partner and that he still does not know exactly what happened. remarks and his stance on this, which is giving him a lot of criticism from the congress, where they really want to see something happen. they might be moving forward with sanctions. there is a lot of criticism on both sides of the aisle.

schneider, our editor there in hong kong. we will talk more about the likely brexit outcome. it is by no means a done deal. a ray of light for theresa may to get this push through parliament. later this hour, we will be about the greatest volatility trade. sophie: plus the outlook and why our next guest is bullish. this is bloomberg. ♪

haidi: this is "daybreak: asia." sophie: i'm sophie kamaruddin in hong kong. asian stocks rounding out

another round of losses. let's bring in the investment specialist. thank you so much for joining us this morning. we last spoke in september and we saw that route in asian stocks. you are remaining constructive. into 2019, where are you seeing the biggest opportunity? >> in asia. number one, the long-term growth of asia remains tremendous. secondly, earnings remain in my bash good shape. have a more optimistic earnings picture for 2019. violations have already

adjusted. around 1.5 at variations. analysis shows that the average would be around 20%. to buildery good time strategic positions in asia. you are sticking to your income stock focus. tell us more. >> under the current investment environment, considering both upside and downside is very important. strategy, focusing on value. it makes a lot of sense. a more balanced portfolio, it

makes a lot of sense. from widening interest-rate margins, higher loan growth and quality. hand, a lot of them , the opportunity emerged. saying this is a very as analance, as well attractive deal. the heard of emerging-market bulls, it is looking more crowded every day. these expectations that we are going to get more of a dovish fed.

is that still an opportunity? >> first of all, in terms of the negative, there are a number of negatives this year. that all of these factors have already been present in the market. that china isis already easing. and will help the economy market sentiment. overall, we think all of these negatives are priced in at the current valuations. really good valuations when you look around the region. techrms of your outlook on , regardless of whether you look

at semiconductor's any aspect of the supply chain. take a look at this tencent chart. after a number of attempts come we finally see if breaking through the average. a rebound of about 10% this month. thatis a bullish indicator they will see a revival? >> technology is a big sector. what we like to look forward is stable business. when it comes to the income strategy, we will look for earnings for stable yields. in heavy growth stage. moment, we still have technology is years in our

strategy. somee: there have been ripple affects. bearing the brunt. we have hardware space seeing some pressure. how is that playing into your strategy? what about the policy response from china? our strategy, normally we look for stocks with 3% dividend yield. we also look at value. we will consider investing. at this moment, we still see opportunity. they offer a very decent yield.

overall, we would like to have a balance between cyclical financials and a much better balance for volatility. sophie: thank you so much. happy friday. a roundup of your stories you need to know to get your days going on this edition of daybreak. ands available on mobile the bloomberg app. this is bloomberg. ♪

sophie: this is "daybreak: asia." haidi: a quick check of the latest business flash headlines. tesla has cut prices. prices are lower by 26%.

the company has decided to absorb a significant part of the charges on cars imported from the u.s.. aims to start its production in shanghai next year. sophie: tencent might be able to take some encouragement from the pendulum swinging their way. closing above the moving day average, extending the rebound to 10%. -- as been booted by the dolce & gabbana issue called for a nationwide boycott after a video campaign and comments accused of being racist.

they sent more than 100 billion dollars on luxury last year, about a third of the global total. sophie: china is defending itself from u.s. accusations that it is continuing a campaign of intellectual property and technology best. our respondent tom mackenzie is following this. what is china's saying? this was the ministry of commerce reacting. saying that china was continuing in terms of intellectual property theft, that they had not changed their behavior. pushing back pretty strongly saying the report ignores the reality on the ground and effectively risks undermining the relationship even further

between the two presidents, the chinese officials saying that their counterparts are working to try to get to a point where there can be some kind of resolution at that meeting. reports like this simply do not help. when you talk to u.s. businesses operating on the ground, they and evenmains an issue though intellectual property theft is less of a concern, it is still a problem. i talked to the president in china. he said if they were serious, they would right into the law books, simply outlawing and banning it. what it also points to, this report, that the u.s. is taking more aggressive steps.

considering for example high-tech exports to the chinese markets. on a number of fronts, the u.s. is pushing back on this. it is difficult to see how it can be sustainable. haidi: we are also looking at this report that they are encouraging their allies to drop. young has already taken its own position on that. tom: they said if there was one thatnent in the network was compromised, it could take the whole network down. it is founded by an officer and it operates as a normal, private company. few people would argue that it gets state support. telling countries that they huaweibe avoiding buying technology. think about germany and japan.

on some of impact china's corporations as a result of some of these tensions. tom mackenzie there. we will have lots more to come. this is bloomberg. ♪

sophie: the sun is breaking through on victoria harbour. happy friday to you all. you are watching "daybreak: asia." tom: thank you. support for anir alliance, despite the firing of carlos going. a winning cooperation. it was later backed by a ceo. they voted unanimously is --

unanimously. appointing an interim leader. exchange aboutg nissan as an enterprise. what is important for both of us is the preservation of the group is goinghe through turbulence and that should not be allowed to threaten thousands of jobs. an emergency has been declared in new south wales. about 100 firefighters are working to contain a blaze on three fronts near newcastle. they are being backed up by a water bombing aircraft. believe it will continue all day, frustrating efforts.

the commerce ministry dismissing claims as unwarranted and says the trump administration is wrecking relations. the leaning tower of pisa is not leaving so much. work, it has of better structural health than expected. it reopened in 2001 after being closed for years over fears that it would collapse. oftoring hundreds of tons lead counter weights. 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 tom mackenzie. this is bloomberg. sophie: a quick check of market action.

holidays and the u.s. closed for the thanksgiving break. asian stocks looking next this morning. rounding out a third week of losses. little change. we do have communications in health care. it is set for the second consecutive week of losses. take a closer look at stock is. rising the most on the benchmark. upgrading the stock from neutral. technology dropping by the most in some time after reports that they were looking to offload. taking a quick look at what is .oing on this as korean regulators say it

should not last long. haidi: japanese markets are off for their holiday. moving to ease concerns over the alliance. unanimously voted for the chairman's dismissal. joining us today out of tokyo. we are expecting a little more dissent. it was unanimous. minus the twoy, that are in detention in tokyo. their representative director, quite a powerful position on the board, that is said to have done a lot of the work for carlos ghosn. still chairman and ceo for

renault. the fate of carlos ghosn in the legal process is still in the air. it was unanimous. we thought there was going to be dissent from two of the board members who had ties to renault. after about three hours deliberating at the yokohama headquarters, it was unanimous to oust carlos ghosn as chairman. again, perhaps his biggest trouble now are his legal woes in tokyo. haidi: tell us more about those. tokyoording to the prosecutors office, they are picking up the case from this investigation by nissan.

as late be in detention as next week, next friday, until a possible indictment comes down is he eligible for bail. that is not a certainty either. true, theyimes are would constitute quite heavy crimes that could lead to a jail sentence or imprisonment of up to 10 years. even in this very preliminary , it is painting a very dire picture. -- heard about what they did for the french president, calling accusations unusual, precise and serious. his future at nissan is pretty much cemented now.

his legal problems may just be beginning. andie: reportedly in shock distress. he is intent on this cap he is carving out. what are the next milestones? biggest question is the future of the alliance with renault. has a bit more wind in his sales, in his efforts to strengthen nissan's position in the alliance. carlos had been pushing for a merger between them. that is not something that -sanhology -- saikawa wanted. the french government has a 15% stake in renault. rights.g

yet they contribute the bulk of profit and revenue. they want a more favorable partnership there, but not a merger. going forward, that is what everyone is saying. whether it will work, we are not sure yet. sophie: now to our next story. loss againster net alibaba. it almost doubled its operating loss. extending into new businesses has also taken a toll on shares. bloomberg lulu chen joins us now. competition. it is looking willing to have to wrapcquisition costs

up expenses in light of the competition. >> absolutely. is sacrificing profit for the sake of market share. of thisostly because expansion into new initiatives, which includes ridesharing and bike sharing business. for the time being, the key competitor is ending triple the amount of subsidies area it cannot afford not to invest in food delivery. sophie: they said they would be more cautious. >> the in new initiatives includes the ridesharing and by sharing business, but also the restaurant business. that spells trouble for a key competitor. at $7already valued withon, so this is clearly

its potential. again, it is a low margin business. they will be more cautious on ridesharing and bike sharing, saying they are cutting their fleet for bikes. are they concerned about the broader economic slowdown? >> absolutely. they are not immune to give they are already of scale. that itsitive thinking will be a demanded service in the long run. haidi: thank you for that. taking a look at those numbers. at where next, looking assets go from here. the brexit deal looking like it is seeing a glimmer of life.

disgruntlement abroad. we are getting a look at what will becoming up next. this is bloomberg. ♪

sophie: this is "daybreak: asia." sterling rose as theresa may struck that brexit deal in brussels. she insists it is the best outcome. ahead of the crucial summit this weekend, the chief economist of scotia bank joins us. we will get to asia shortly. i wanted to start off with where we are. the spec a jump that we saw in the sterling, if you take a look at the options, sterling sentiment is still close to its

most bearish level. we have this flowchart looking at all the possible outcomes from here towards the end of the year, going into march. there is a great deal of uncertainty. what happens from here #-- what happens from here? situation where the closer you get to the deal, in many ways, the farther away it seems. is, it is a bit like the leadership issue, a hot potato. the competitors in the conservative party talk a good game about how she is feeling her task, but it is not clear that is -- it is in anyone's interest to take up the leadership challenge to take this forward. we are of this view that we are

likely to see this go forward and pass. as you point out and indicated, there are a lot of risks around that. haidi: is there any narrative that would get you excited about europe? we talked at length about that. ofbe there are some signs compromise, but at the end of the day, you have a continent not seeing mode -- much growth at all. >> you are absolutely right. that has been a feature for quite a while. there is a european dimension to --t, but it is a broader there is no question about that. is in the u.s. or europe, this part of the world, you are looking at slower growth. sophie: trade tensions loom

large. discussing a shift in the supply chain. chineselearned that the carmaker is delaying its plan in europe. that is one example of what to expect. what is your expectation of the meeting coming up? question that they are the most serious issue facing the economy. pressure onot of the g20 next week. our sense is, the rhetoric being as dramatic as it is, typically rumpian in fashion.

we are hoping for positive news. whether or not we get a deal next week or an element of a they agreed to, ultimately this will be something that gets resolved in a reasonably amicable way. given how damaging an escalation of the conflict would be. question mark remaining over that meeting. >> china, one of the things i think president trump underestimate is the way china has to deal with an escalation in the trade conflict. chinese to use the full range of tools at their

also in an effort to inflate their economy to some extent. but also to send a signal to the americans that they have a lot of bulls at their disposal to offset some of the damage trump is trying to cause china. on to theant to move fed because it is a problematic time if you are a policy maker. how, trying to work out much of a leading indicator some of the bearish housing market from the u.s.. we haveo talk about how really seen expectations for what the fed will do. increasing number of voices suggesting that we will see a positive i bring, maybe by the middle of next year. are we setting up for a couple of dovish hikes from the fed next year? that is a reasonable outcome.

the u.s. remains reasonably strong. it is going to be the case next year as well. fiscal stimulus is quite active. despite the uncertainty we are seeing in financial markets in recent weeks, despite the , thern in credit markets u.s. economy remains strong and it is clear that the risk is to the downside. it is more likely that growth will be lower, particularly if china rates increase. about whether the fed is on track, whether it needs think about calibrating its response to the negative. we think it remains a reasonable scenario over the next 12 months.

fedie: speculation that the may turn more dovish when it comes to the tightening cycle. what could derail that? >> i think an escalation in the u.s. china trade conflict. some question about what that means for the fed, clearly that is a concern, but at the same time, it would not be unreasonable to see growth lower. sense, the risk around the trade are very much top of mind for the fed and will determine to some degree what they expect. ushie: thank you for joining this friday. that was the chief economist joining us from singapore.

us live and catch up on past interviews, diving into any securities we have been discussing. send us instant messages during our shows. check it out at tv . this is bloomberg. --♪

sophie: this is "daybreak:

asia." haidi: let's get you a quick check of the latest flash headlines. latest technology. using a smart phone-based market. it happens to be backed by softbank. making it easier for investors to buy individual shares, rather than having to take the minimal block of 100. sophie: china's struggling group has turned to asset management for advice on raising money. earlier this week under increasing pressure to pay down one of the biggest debt balances in the whole of asia. haidi: the director has resigned two days after the city announced multiple investigations into the

commodities raising -- trading house. he says he has contributed all he can to nobles restructuring. that turnaround has been placed in doubt by singapore's decision about the counting practices. thanksgiving means the traditional thanksgiving dinner. also building an appetite for black friday sales. one of the biggest days for american retailers. forecast the holiday retail sales. forecasting sales growth over the holiday between 4.3 and 4.8. someoneing to expect hundred 64 million people to shop online and in stores over the five-day thanksgiving weekend from thanksgiving to cyber monday.

household income is up and wages are rising. consumer confidence has been skyhigh. dayst promotions started ago in many stores. they will be looking at how and where americans shop. adobe saying mobile phones are the most popular way to shop digitally now. year, ther grabs this sales from now bankrupt companies, including for his arrest and sears. one snag? retail investors have been down slumping towards black friday, down 11% in recent days. this holiday season may be the peak and it might be all downhill come 2019 for retailers. let's get a look at what

is coming up in the next few hours. bargains to be had. it is interesting because you forget what happened a few weeks ago, singles' day. sales.illion in we smashed records there. is, is itestion taking black friday's lunch? we will discuss that in the upcoming hour. melanie will be joining us to talk more about this. she said that this phenomenon that we are seeing is really coming through in asia and is driving the growth that we are seeing in this part of the world. and why habits, trends asia, china and india are seeing

tremendous growth. that: looking forward to and all the shopping, deals, all of that to be had over the next five days or so. that is just about it for "daybreak: asia." looking forward to the start of trading in hong kong. the china open is next. a quiet and to an up-and-down trading week. andlso have indian markets japanese market closed for their own public holiday today. the china open is up next. this is bloomberg. ♪

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that's $150 off the mattress, plus a free pillow - and free shipping too. go to buyleesa.com today. you need this bed. >> it is not :00 a.m. here in hong kong and shanghai. welcome to bloomberg markets china open. yvonne: asia-pacific markets looks at for decline for the third week of losses. volume expected to be like. critics at home and abroad are unhappy. lossad: serving up a big but operating losses ballooned in the last quarter.

you can hear a pin drop. we have japan out of the picture. india. no clear lead coming from america because of thanksgiving. something big this friday? year. you look at the 10 it is almost -- yvonne: a pretty big week. minutes, the g20 meeting. the big question for the market is are we going to see the fed put still in place. let's look at how the market open is for singapore, taiwan and malaysia. rishaad: are we building up too much on that? yvonne: we might be.

i think most people are set up for these different worst-case, best case scenarios ahead of that buenos aires meeting. not likely to see any really positive outcomes. a pretty mixed picture. taipei seeing a little bit of gain. but pretty quiet overall. let's show you how quiet it is when it comes to your gmm at the moment. yeah. hold on a second here. pretty listless, so to speak. there is not a lot of changes in some of these markets. seeing a decent buy here. pretty much is slow going. dollar also pretty flat. dollar-yen hovering around 1.13. one to switch of the boards and show you when it comes to what happens with the fed next week. the question is will we go from

hawkish rate hikes do more dovish ones. morgan stanley thinks we could be heading into more of a dovish path. they only see two more hikes next year, which would be pretty negative for dollar and positive for em. morgan stanley saying it could come to re-examine some of these beaten-down sectors like em, em currencies in particular. em currencies, much of this year and last, have moved in tandem with u.s. stocks. that starts to diverge earlier this year. now despite this fall we see in u.s. equities, em currencies pretty much have been resilient overall. perhaps there is more room given that some of this em sectors are less sensitive to what has been going on in the u.s. elsewhere in the china market open, some people are saying it is worth looking at some of

these beaten-down sectors. chinese stocks is one of them. the list is pretty long. high-yield bonds is what some people are throwing out. take a look at how we are set up in hong kong. down about a fifth of 1%. could be a little better in shanghai here today. offshore renminbi not doing a lot. let's get youe caught up with the first word news. they have reiterated support for their alliance -spite the board voted unanimously to dismiss him in marked contrast to renault. i want you to know that our group is perfectly organized to ensure the continuity of the company's business.

i will make sure begin tr stability and stay focused on our mission to preserve the interests and sustainability of alliance. says the ceo sachs held a meeting in 2012 at the financial year alleged to be at the center of a scandal. federal prosecutors are examining the meeting as part of a criminal investigation. he has not been accused of wrongdoing. goldman says they did not know it would be diverted. president trump says he as close the border of mexico and authorize the use of lethal force against migrants. he said the military could open fire if necessary, claiming without evidence, that hundreds of criminals are among the people trying to enter the u.s. he said he is prepared to shut down the entire border, which would cut off the shipment of mexican goods. the european central bank says uncertainty over italy threatens

to damage its national economy. the chief economist told reporters that italy's current financial conditions are too tight. italian bonds have risen this week. 3.5%,r yields remain your far higher than at the start of the year. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. let's have a look at what is going on. beachund rises as britain -- it reaches its final part of the brexit deal. ammunition asical she prepares to sell it to some skeptics. >> on saturday i will return to brussels for a further meeting where we will discuss how to

bring this process to a conclusion in the interest of all our people. the british people want this to be settled. they want a good deal that sets us on course for a brighter future. that deal is within our grasp. let's try to map out where we go from here, if that is possible. jodi schneider is here with us. theresa may has her brexit deal. were blindsided by that. what are the potential implications? jodi: the eu presidents of a headache framework for the deal and then out came the text of the deal that was leaked. spaniards are not happy about gibraltar. even german chancellor angela merkel was a little surprised by this coming out like this. a little blind-sided, some hurt feelings perhaps. is whether that

will be a rubberstamping of this deal into something more contentious. angela merkel has indicated she wants to get briefed, get this signed and over with. so probably we will see a signing on sunday, although it little bit of blind-siding was not the best handled. being regarded as falling between two stools. she possibly does not have the numbers in parliament. gets done this presumably on sunday then she has a real task ahead of her, selling it at home. she does not have the votes. it will be a very narrow path to getting it through. she is continuing to make the case that if this does not get approved, it is a chaotic exit and that is not what the voters wanted. also an interesting argument therrhaging is the voters,

british people are tired of all these dramatic party politics. they want this done and they want to move on. rishaad: it is getting rather tiresome. schneider, thank you. sterling has been in a narrow range the last couple years, essentially. six months after it happened. does this alter the mood? melanie: -- >> it is hard to see. a best case is if we had hard brexit. the onlyoint in time, thing i will be looking at is 145, maybe 140. i think she will get it done. david: that is quite far off.

>> you could make it one year out. we were 143 at some point this year. you could still bring it in higher. it will be one big thing office shoulders to get that out of the way. i think that is the exhaustion. you cannot make any decisions about the future. rishaad: is not just sterling. the pound and the euro have been more or less even. actuale do you see the correct time to cross? issues, so to own speak. i think the eurozone, they cannot play too hardball. they had to get something done and solve on their own issues. it will get done. see -- i call her the woman with multiple lives.

rishaad: nobody wants it. that's the problem. >> correct. you do, damned if you don't.she deserves a lot more credit than what she has gotten so far. again, it's kind of you are steering the ship and no one else wants to be the captain. that is kind of the way it is. the best thing would have been if we had a hard brexit from the very beginning goes now we would be talking about the next steps rather than contingents with the eurozone. david: a lot more to talk about. rishaad: going to check the open when it gets underway. why they are buying hong kong property stocks. this is bloomberg. ♪

rishaad: we are back. we have a viewer question. it goes in tandem with what you had in your notes. sentiment has passed the gutters in three floors down. asking, what would cause an upside surprise for the global economy in 2019? everyone seems very negative but all that is sentiment rather than data. >> the world is definitely not falling off the proverbial cliff on economic data. what i am watching out for is a u.s. infrastructure bill. this is any -- more important than a china u.s. trade deal. this will give us a pathway for the next 12 months.

it is up to the democrats. will they come and do something with the republicans? they said that is something they on, thetually agree infrastructure bill. or will they be more combative? that is the most important thing to watch out for. david: almost fiscal stimulus 2.0. that does not seem like good news if you are sitting in em. kay: potentially not but in the sense of an infrastructure built for the u.s., that would be very bullish for commodity sure sure than another round of tax cuts which would just slowly go to u.s. companies. it is a better stimulus for the world than what we have previously seen. rishaad: point being, we are not going to hand them a handbasket. kay: absolutely not. they are still annualized in

growth of $1.7 trillion. global pmi is still 54. yes we are slowing down but the u.s. continues to be on fire. rishaad: to what extent do you think they will not be a recession or a deep slowdown? is it because we never really got out of the lost -- last recession? kay: absolutely. we still have the issues and baggage from the gse. that is still hanging around us. so, that is not going to be solved anytime soon. from my perspective, the key dates to watch out for our andastructure, november 30, whether we get a pivot the fed on december 19. david: i was going to ask you that. can we get it up? breakevens. does this have to do with the world repricing? does the fed the attention to

this or is this simply an oil affect? kay: it is hard to say. the oil and equity fallout started the same. it all kicked off after the september hike. all of october. what is clear to me is the market is trading very stressed. it always creates opportunity. i still feel the fed will be moving on, and i think the markets are way too pessimistic and bearish at the moment. david: final question for you. what do you mean by thou shall not pass? kay: i made a big call that we the --aking up on 326 is a level we have to hold above for that to stay true. rishaad: always a pleasure. thank you. fix?about this yvonne: not a lot here. 69306 is what we saw today.

close if not staying online with what analysts were expecting. interesting because given all these expectations that perhaps the fed might have to go back on their expectations for a fed rate hike next year, bmy said that could relieve some pressure on the offshore renminbi. they think we are seeing signs this could happen already. havean see some of these actually made a series of lower highs of late. hitstment perhaps we will that seven handles for dollar china and perhaps we could be seeing more strength into the currency. take a look at more things coming out. movers in china and counting down to the china open in a couple minutes. this is bloomberg. ♪ ♪

rishaad: you are back with

bloomberg markets china open. the u.s. government is trying to persuade internet providers to drop while way. telecom executives -- washington is said to be concerned about the use of chinese equipment in nations with u.s. military bases. david: the company is said to have turned to an expert in selling units to raise cash. talks began earlier this week. under increasing pressure to pay down a huge debt mountain. company dispose of $20 billion worth of assets this year and intends to sell $3 billion more this month. rishaad: tesla cut prices in china.

lower by 12% to 26%. beijing raised it to 40% in response to the trump administration. they aim to start model three production next year. yvonne: a pretty mixed picture so far. listless in the region. all pretty quiet. hang seng is slated for a third percent drop at the open. futures still in positive territory. strength forss -- the dollar china. let's show you some movers we are looking at prior -- looking at. property developers once to look at. discounts on steep

some new projects, some of which are slashing in double digits. these are the three that really have made some of these reductions. not just reductions but cash rebates, shopping vouchers, as well as offsetting slow growth in sales. sales mayese new home fall 10% to 15% in the next 12 to 18 months. that is one to watch. we saw two companies that did not report yesterday. biofarma down 4.5% in the premarket. a third quarter was in line with estimates. nine-month profit was up 22%. but there is a grim outlook. the company could face some pressure later on next year because they might face pressure to cut prices soon.

this is according to this pilot procurement plan happening in china right now where basically the cities will be buying medicine in bulk to lower costs. that could be why the stock is heading lower. that stock is down some 8% here. we have been talking about that loss when it came to one that was much steeper than expected. net costs as well. we will talk more about that. rishaad: 8% down. againstlike the fight increasinglyis competitive chinese food delivery market is really hitting this company. >> absolutely. it might seem it is second fighting profit for the market share. it is expanding into new initiatives and those include ride-hailing services. they are also expanding into another business called

restaurant management services. that is actually competing with a $7 million company. it spells company for -- spells trouble for that company. with alibaba spending so much in the food delivery business, it doesn't look like they will stop investing anytime soon. david: i guess it comes down to who has the deeper pockets. lulu: with alibaba fully controlled, that does have the profits. they are backed by tencent but now they are fully independent company. tencent is only a backer, not a controller. in terms of who has a deeper pocket, you do the math. rishaad: and who has short arms. tell me something, what about the market? if there is economic slowdown how does that affect food delivery?

do they go out less? i don't know. lulu: that was a key question brought up yesterday to say they are not immune to the macro slowdown. that said, they put a more positive spin on this narrative, saying you if some economy slows down, people will order food no matter what. for younger people these days a lot just don't even have a proper kitchen. on-demand food delivery is something that will continue to last, even if the economy slows down. david: it is the second to last thing he stopped doing. well, you stop breathing last. food goes obviously second to last. you do need that to remain alive, right? rishaad: right. [laughter] the numbers show they are really suffering in this battle for market share. david: the biggest drop in six weeks. coming up our next guest talking

about these markets lowering their expectations in trade rhetoric between the u.s. and china heating up. apple capital joins us next. this is bloomberg. ♪ [ phone rings ] what?!

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rishaad: as we are counting down to the china open, looking at the pound. looks like we have a brexit deal on the table. asian stocks looking mixed. asia fx perhaps getting some altitude. carlos shifting that alliance between nissan. on top of all that, it is a holiday in japan and in india. and there was a holiday in the u.s.. david: which is why we are trading 40% lighter in volumes. we don't have trading in the treasury market as well.

hang seng is looking like it will open 70 points down. with 10 seconds into the open, not any data. yvonne: you know how you eat turkey and you want to pass out? that is kind of what is happening with the markets. take a look at how the china market is opening. pointing lower when it comes to the hang seng. shares down about 35 points. futures positive. losses about a fifth of 1%. not doing a lot in general. asian stocks in general are poised for a third week of losses. take a look. earnings out. was not pretty. net loss that was three times larger. we were talking about this fight between alibaba and tencent. food delivery is showing through

these numbers. down within 10%. spending those losses in the premarket as well. we have been talking a lot about these chip stocks. a lot of weakness. concerns about whether we have reached the end of this super cycle. it is interesting. thep global fund manager in u.s. say they are selling all stakes in samsung electronics. they have not given up on the sector just yet. they are keeping their holdings when it comes to psm see. they say they are more resilient to these concerns given the fact most of the revenue comes from found free services, not so much -- tencent also interesting. they sold stock when it was around 400. perhaps they were right on that call. sitting on 292 at the moment. have the tides started to turn on tencent? you'll see why.

technical indicators suggest perhaps we are getting closer to this key technical level. thathat we had closer to perhaps we get more support in the stock, how we price in negative the when it comes to trade wars. that he a key question. david: yvonne which is talking about tencent. that is one of your picks. amazon as well. do you own the stocks? >> yes. david: you are bullish because? --tencent in the short time it was down in the last quarter. there is some pickup in index ratings towards the end of the month. people like the business other than the games.

rishaad: it is going to take some time because they had a lot of proposals. things -- >> of course. we had been down so much. i think tencent remains a very good company. [indiscernible] fed hikes can take away that optimism. >> if you look at the u.s. , the rate hike might not be that fast.

not hawkish anymore. oil will decrease inflationary pressure as well. [indiscernible] their portfolio is actually quite great. [indiscernible] david: next week the big meeting of course on the sidelines of the g20, hopefully they get something, xi jinping and donald trump. saysinistry of commerce china expects to enhance trade cooperation at the g20. what expectations do you have

for next week? does it matter if they did not get a deal? rishaad: did they mention who they would have trade cooperation with? david: they did not. >> markets are slightly positive. hong kong and china are ok. freefall in in a recent days. people are not panicking in hong kong and china. rishaad: we already had it happen here. >> that's right. people probably think there is -- they are not expecting much. they are giving hope. in the u.s., nothing for now. we remain in the situation. i think there will be some selloff. david: would you buy the index

now? >> yes, but not too much. liquidity is very bad. it will still be there. tell me something. what about earnings and earnings growth, looking ahead to the fourth quarter and beyond? i am talking about particularly the u.s. earnings season has been fabulous in recent times. you could argue a lot of that comes from cheap money and borrowing cheaply and doing share buybacks, which have artificially inflated the earnings growth, some would say. borrowing money to do that when they should be borrowing to invest. >> i am still optimistic. sign, actually.

this is the cost of operating. they are at the lowest lowering now. we have signs for wage inflation. we have strong consumer confidence. are looking at thanksgiving holiday sales very closely. david: going into 2019, i'm looking at msci china. we are expecting 14% earnings growth. does that sound or seem too optimistic to you, or does it sound right? >> a bit optimistic. are ofow things in china concern. if you look at it, this

competition. rishaad: it is down as much as 14%. because of ballooning losses. --competition earnings would be quite bad in the foreseeable future. also the appetite for new economy in hong kong. that would be in negative factor for china. rishaad: thank you so much for joining us. have?epeating, what do we down in the session. david: down as much as 14%. rishaad: at the moment we are down by 11.5%. number is showing huge losses increasing. the latest on

britain's attempts to leave the european union as we get the first word news. paul: sterling rose as theresa may struck her brexit deal in brussels. critics at home and on the continent are not happy. several eu nations say they were led to believe the accord was still a draft that would be discuss this weekend. hardline eurosceptics in britain condemned it as a sellout that keeps the u.k. in the eu. >> the further meeting with president uecker, we will discuss how to bring this process to a conclusion in the interest of all of our people. the british people want this to be settled. they want a good deal that sets us on the course for a brighter future. that deal is within our grasp. saudi crown prince mohammad bin salman has begin a tour of arab neighbors, his first foreign trip since the

murder of journalist jamal khashoggi. tour as --e the prince also claims to attend next week's g20 in buenos aires and president trump said they will meet there. the bushfire emergency has been declared in new south wales as strong wind whips up flames. 100 firefighters are working to contain the blaze on three fronts. 170 kilometers north of sydney. they are being assisted by aircraft. strong winds are likely to continue all day, frustrating containment efforts. the leading tower of pisa is not leaning so much. after decades of work, engineers say the tower has been straightened further. the 12th century tower reopened in 2001 after being closed for

10 years on fears it would collapse. engineers strengthen the foundations and installed hundreds of tons of counterweight to pull up the building. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. up, a door opens for a successor to nissan. we are looking at who is next in line and the prospect of jail time. this is bloomberg. ♪

yvonne: now for a look at stories trending across the bloomberg universe. how the fashion business needs to adapt after dolce & gabbana completely missed the mark in china. make sure to check that out. although a brexit deal is

insight, london's slide is spreading. attictoc on twitter a look compensation. compare top execs at fiat and ford. checkout those stories online and the terminal. is o the company is easingut. -- the board voted unanimously to remove him. stephen engle has been covering this story all week and joins us now from tokyo. there is a new story that indicates that perhaps carlos ghosn underreported his u.s. dollars.ion surmised heation

had underreported by some $44 million. numbers keep on getting larger. has notadd that carlos been charged with a crime yet but he is still being held in detention in tokyo, waiting for what prosecutors are doing now which is building a case for a possible indictment. local media said he could be held in detention for at least another week. another report said it could be extended as long as december 10 before any indictment, and therefore any eligibility for bail. he is in a pickle right now on the legal front. as far as the board vote last night it was a surprise it went unanimously. we were contemplating whether people who came from renault, we knew the day before they had not sacked carlos, they had employed an interim ceo to take over.

the expected maybe the board vote last night at nissan headquarters would be tighter. it was not. it was unanimous. it looks as though the cio was quite convincing the evidence they compiled over the investigation. and they voted 7-0 in favor of removing him as chairman. he is not off the board yet. that will have to be up to a vote of shareholders. is seehow much jail time potentially facing here? according to the tokyo prosecutors office they had a news conference yesterday and said, if he is convicted, jail time upwards of 10 years. at leastcalling this, the evidence laid out so far, a potential crime more serious than insider trading, which has a five-year penalty of imprisonment, which was increased about five-year in a bolstering of anti-financial

crimes in japan. we are hearing from an official post from president macron of france saying the accusations against ghosn are unusual, precise and serious. we heard from the prosecutor's office saying these are heady crimes. not surprisingly we are hearing aat ghosn has been appointed former prosecuting attorney in tokyo who also was very deeply involved with that financial crime in tokyo and putting away the livedoor chairman in 2006. he is very well versed on how to navigate the japanese legal system and the trial system. he will be representing at least for now carlos chosn. rishaad: ultimately we are talking about this three-way alliance. has the crisis between the three companies only just started? it potentially could

have just started. it looks as though the strengthens the hand of the ceo who has been growing increasingly displeased with the shareholding structure and inequities in that alliance where renault really dominates. according to reports you would like to see a revision of that alliance. all the players involved, the common theme is we want the aligns to go forward. the governments and even the nissan board says it. if he gets his way he will probably push for a revision of that. whether that is possible we are not sure, since renault controls 43% of nissan. david: thank you. reminder, markets are closed in japan for thanksgiving.

there may be some movers to talk about. at somei'm looking panel makers in china and taiwan. morgan stanley coming out with a note this morning basically just slashing the- profit for 2019. the ones they had been looking at in particular. 27% slashk at 2019, in profit. down 63%. stock's.aded the also want to focus, we saw in the last couple minutes from china, there was an african swine flu fever outbreak to have been reporting. also when it comes to h5n6.

we are seeing new reports that the bird flu outbreak is being reported. they are down another 2.3% today. a mixed picture for pharma stocks. keep it right here. this is bloomberg. ♪

rishaad: singapore is expected to identify its next prime minister litter today. the finance minister may be offed to succeed, kicking only the third leadership transition it is 53 year history. david: talk about stability. let's bring in stephanie out of electricity. was he one of the favorites to follow? >> he definitely was.

for the past couple of years there have been three names it has been narrowed down to. he was always seen as a leading contender. an important portfolio since 2015. he has had a long history in the civil service. he ran the country's's central bank. he was the education minister. and he started out in the police force. tohaad: is he will placed deal with the challenges that singapore faces? we did have signs of a slowing economy with gdp numbers out yesterday. stephanie: yes. we did have gdp numbers out yesterday. year on year growth was the lowest in two years. heng is very well-positioned.

the ran the central bank. regarded in the civil service. and he has been put in charge of some high-profile commodities -- committees. so, he has had a lot of work in the past several years in terms studies of what the economy needs and what singapore can do to sustain growth in the long-term. and i think that is one of the reasons why he seemed to be chosen today. david: yep. a good pick. looking forward to what he can bring to the table. stephanie, thank you. thes get you an update of latest business flash headlines and look at this massive upcoming ipo $21 million. it is capping the latest technology.

they are using smartphone-based brokerage apps to market the company shares. one happens to be backed by softbank. the plan is to make it easy for investors to buy individual shares rather than having to take the usual blocks of 100. a deal could be valued and wasn't $3 billion. others.mpeting with china's investment firm judy capital asked for second round bids in the next couple weeks. this dolce & gabbana drama has now seen thousands of its products being pulled from china's biggest retail website. calls for a nationwide boycott when viral after this video campaign and instagram comments were seen as racist.

check those out and make up your mind on those. a lot of people calling it a major blow. $100 billion of luxury just last year alone. about a third of the global total. rishaad: let's look at what is happening. just a slight move to the upside. 1/10 of 1%. having a look at the stocks. up about 2%. in go food down 1.6%. 27 stocks rising. eight on the way down. a lot to look forward to coming up in the next hour. have a look at why black friday is starting earlier than ever. we ask why asia is so far ahead in the u.s. in terms of holiday spending. we will be discussing that and more with melanie sanders.

in.id: she is partner at ba we will dig deeper into that. india looks very exciting. this is bloomberg. ♪

♪ rishaad: welcome to bloomberg markets. yvonne: asia pacific markets flat, early optimism draining away. a third weekly decline. david: serving up a disappointment here, tumbling after operating losses ballooned last quarter. rishaad: theresa may strikes a brexit deal with brussels. critics at home and abroad are not happy. ♪

david: lethargic is another way to describe what is happening. david: marketsfor equity . oil-related currencies like the ringgit are under pressure. yvonne: i'm wondering if that pop in the pound is due to liquidity. certainly focusing on the fed and g20 next week. rishaad: it seems every pronouncement with brexit makes a shift. one day negative, the next day pollyanna about things. let's look at what is going on, the general market view. that is the gmm function on the bloomberg terminal. we are becoming flat-ish as we had that positivity at the start