♪ haidi: a good morning. sophie: and in hong kong, welcome to "daybreak: asia." ♪ >> our top stories, asia-pacific stocks are set to follow wall street higher. indicatingrump higher tariffs are coming. apple fell amid talks of

imported iphones. hot land supporters could see plant closures. -- the plant supporters could see plant closures. >> the first full session back since the thanksgiving holiday. it was a rebound in stocks. especially as we were already looking ahead to the s&p futures. the dow was up by 350 points for these three indices across the board. 500, the biggest core tryst -- biggest corporate story , jumping by nearly 5%. any will cut 14,000 jobs in effort to realign into the electric space. you can see the nasdaq jumped by 2%. apple was the big story. cap.fell below the market

they managed to take that crowd back -- that crown back. and all things across the board did rise at the training end. -- trading end. it was green straight on through. it was green straight on through. haidi: fingers crossed we can keep up the momentum, but we have some competing dynamics as we gear up for trade. we are seeing gains of about 2/10 of a percent. while we are seeing shares also gaining, we have new zealand trade data showing reports coming in at a record for the month of october and higher crude prices. we could see gains for major markets. nikkei futures indicating some weakness, given some of these trade lines we have seen from the wall street journal reports. we could have retailers move in

the region, given that bounce for u.s. retail stocks overnight. and tech will be key to watch today. watch for korean retailers to perhaps come under pressure after consumer confidence fell in november. the's --s outnumber pessimists outnumber the optimists. plenty of players to watch given the gm news, that will have applications for other auto players in the region. on the back of the report of -- trump's friend comments -- u.s. futures now nudging lower. that could indicate some of that negative sentiment coming into the session this morning. , taking a look at the early trading action this tuesday asian session. let's get you the first word news with jessica. jessica: the escalating trade war's see china imports of oil

fall. no deliveries of crude in october, while september topped one million tons. bloomberg took elation imports from iran sells -- iran fell 64%. china's imports from iraq and russia both third last month. states has broken its silence amid surging tensions between russia and ukraine. the decision to open fire at sea move:an outrageous protests erupted across ukraine. the move will take effect from wednesday and last a month. president trump is threatening to close the border with mexico with thousands of migrants entering the united states. he says they should all return to their home country. closing the border would have widespread applications.

mexico's america's largest -- america's third-largest -- mexico is america's third-largest trading partner. theassess elevating successful arrival of its insight lander on mars -- and nasa celebrating the successful arrival of its insight lander on mars. the probe aims to deliver more information about the martian interior. day,l news 24 hours a on-air, and on tiktok on t witter. i'm jessica summers, this is bloomberg. haidi: thank you. president trump says he expects to move ahead with increasing dollars of0 billion chinese goods, to 25%. he tells the wall street journal it is unlikely he will accept

china's request to hold off on increase. we'll is have to wonder whether this is gamesmanship going into the gene 20 -- into the g20. >> he has long been very firm, very consistent on the trade issues. hisuts great stock in personal negotiating skills. when he meets with president xi later on this week at the g20 summit, this'll certainly be the main topic of their conversation. the president has said he's the additionalr duties on the $200 billion worth of chinese goods that are imported. he may go forward with further duties on chinese products, including some that would begin affecting u.s. consumers more broadly, such as iphones and laptops.

he is sitting with the tough rhetoric and says he will not back down. so if china does give some concessions on the demands he has made -- it's going to be a very tense meeting in argentina. donald trump also casting his gaze and twitter account south of the border to mexico, saying, "we will close the border permanently if we need." can donald trump actually do this? it's a wide latitude to take security measures for the u.s.. he has made this threat before and not fully followed through. economic impact, obviously, on both countries. mexico being the third biggest trading partner with the u.s. in goods, and a lot of those guys are going back and forth across the border.

his death release really specific on what he means by closing down the border, does that mean rail traffic or just people going back and forth -- he was not really specific on what he means by closing down the border, does that mean rail traffic or just people going back and forth? so the markets didn't really react much to that threat, the peso was down a bit but recovered later in the trading sessions. right now it seems it is just that, a twitter threat rather than a firm u.s. policy. we won't get much clarity until the new president is sworn in on december 1. thank you very much. switching gears to our top corporate story, gm is trimming down. the carmaker will cut over 14,000 workers and close 7000 plants around the world. this as investors welcomed the

decision. president trump says he shares his displeasure with the gm -- he shared his displeasure with the gm ceo. president trump: i was very tough. i said this country has done a lot for general motors, you better get back in there soon. pressure ont of them. you have senators, a lot of lotr pray for -- a of other people. car that is selling well and put it back in. ramy: bloomberg's auto reporter joins us from detroit. we just heard donald trump telling the -- telling gm they better get back in there. he did campaign on the idea to revitalize the rust belt. can gm get back in there? keith: that's a pretty tall order. clearly took the gm ceo to the woodshed and told her she needs to come up with a new car to put into the plant.

there are also two plants in --higan that voted for michigan, which voted for donald trump, that are closing. they want suvs and pickup truck's. all of these plants were down to one shift and operating at a very low utilization. that's no it to make money. ramy: investors clearly are happy about this. , aside from00 jobs that number to those folks who were affected, investors are saying, "we like this." but you think this pop is potentially short-lived. the worst capacity of utilization among the u.s. players. they had about one million units of overcapacity. addressing that is certainly necessary.

that's one of the things investors are reacting to. ands going to need billions billions of dollars to prepare for its future, for electric vehicles and the self driving vehicles. that's part of what behind today's announcement as well. is there concern -- it's a pretty big bet on the future. they are looking at a future that's comprising driverless cars and electric vehicles. given that one component of that, driverless cars, is in the distant future, is it a bit of a preemptive bet they are taking? keith: they're trying to build up a very strong free cash flow by taking this move. to build a lot of suvs and pickup truck's, which are highly profitable, and give them the feed corn for these future projects. self driving cars are not going to pay off for a long time. the chief -- but if you don't play in that game you may not have a future. haidi: thank you so much for

joining us. one of our top stories today. still ahead, setting the tone as we get into december. we take a look at the daily news -- thehe delusion of deluge of industrial production. why u.s. equities may be moving sideways in the coming weeks. stay tuned, this is bloomberg. ♪

welcome back, this is daybreak asia. haidi: let's take a look at the u.s. close. oil gaining on reduced geopolitical concerns paid -- concerns. we are starting to feel that tech rebound, leading the recovery rally. su keenan has all the action. i'm going to float the question,

this is a short-term bounce. su: clearly, and we saw that with the rise of oil. what signal to the snapshot, you'll see the nasdaq up 2%. you look at that oil chart, thesharp decline on friday, snapback was clear in this latest session, which shows that investors are having into some of the more riskier assets. having into some of the more riskier assets. if you look at the most active's , the size of the gain is notable. amazon leading, benefiting from cyber monday and heavy online sales. again, if you look at the bloomberg one more time, the correlation between crude and s&p is also starting to shape up. you saw the upturn in the s&p and the oil at the same time.

which briefly overtook apple in terms of being the number one company in terms of market value. apple declined allowing that to happen. after hours we saw apple reclaim its number one spot at the close , declining yet again on the trump tariff threat. this will be an ongoing story where apple overtakes. ramy: let's dive even further into the markets. we are joined by chief global strategist and head of equity derivatives, michael purves. are youhis relief. how catching it and to what degree is it short-lived? michael: i'm good to talk about technicals, back in october we violated the 200 day moving average. that was the support line for the last couple of years.

when you do that, it tends to not be a quick repair. oftenlly through it, but that rally is not sustained and you have to form a double bottom. here, i'm the upside speaking truly technically, it's going to be challenged by getting through and holding above at the same basis as that 200 day moving average. the bears are also challenged. if you look at the chart on the spx, that level is a pretty solid level of support. that we are kind of ranged down here between the 200 day moving average of the 260 day support, with 100 important footnote. there is a seasonal dynamic in december. september tends to be the strongest month of the year. that something you can't ignore, even if the market is flat on the year. ramy: we talk about the santa rally going into the end of the year here.

mosthing also in your recent note that i saw, as of november 16, you had a call for the s&p, 3000. i want to show our viewers where we stand relative to that. 2670 three and changes where we ended. i did calculations before -- 2673 and change is where we ended up. i did cap galatians before, do you think that's where we end yet -- did some calculations before, do you think that's where we end? michael: no. i was bullish, not crazy bullish , but bullish as i saw every major index make highs in august and september. it wasn't just the s&p, it was being confirmed by other indices. i think looking at the seasonal strength in q4, that's more often than not, i thought 3000 seems pretty reasonable. about,back up and talk

fundamentally, as we look at the year ahead, i still think 3000 is a very achievable target next year. we've had a nice valuation reset. one of the things that started this october volatility was the fact that -- sure, interest real interest rates were shooting forward. this stronger-than-expected narrative on the fed height trajectory. while the markets sold off, real interest rates climbed, real earnings yield. that real earnings yield has gone from 2.2% up to 3.5%. of these late cycle pressures that people are bellyaching over, that valuation can accommodate that. it can also accommodate earnings misses too, if we get into a

temperate margin next year. haidi: i want to throw out this -- looking at the divergence when you look at global financial conditions, the selloff we are seeing an equity markets as well as what's going on with the fed funds. given that we are expected to hear from another four feds, because some of them have been pretty dovish over the past couple of weeks, even jay powell has hinted that next year every meeting is going to be a live meeting, but we could see a pause by the middle of spring next year. does that revive a little bit of grading room for this bull run to extend a little bit longer? michael: absolutely. if we went to october when we had bond yields at 3.25% and on equities, the whole risk parity framework that was integral to the post financial rally them it looked like it was in trouble. but since then we've seen bond

yields down to 3.05% from 3.25. bond'sortantly, the supported when there was equity volatility. risk parity, it's not broken here. --you look at the number of with the sense of what the futures are implying next year, three or four weeks ago it was three or two hikes. if they're going to push three or four hikes next year, he's really going to surprise the fed funds market even more today. which is another form of tightening factor there. the prospect of the fed getting incrementally more hawkish here in this december meeting and into next year, when the inflation data has been missing and breakevens have been sliding lower, i think it's much tougher to maintain that early october narrative.

i'm a little bit more on the side of the money markets here then of the fed doves and clinging to some early october narrative of powell. -- almostis also december, we are looking down the barrel of a brand-new year. it's still going to be a valuations game going into 2019. you look at some of these really over loved sectors, does it still make sense to look at sectors or industries, or are we looking more at a -- next year? michael: i think part of your question is are we going to rotate into value? it's been my contention that the rally in the s&p is really the mega pack -- the mega cap tech growth momentum rally. of performance. but leading with a market putting in high single-digit or

low double-digit gains into next year is going to be challenged for several reasons. , just to pickback on the stocks for a second here, what's so different today than there was in september or august? i think those business models -- facebook, obviously, has a few footnotes to go along with that story. i think with most big mega cap tech's earnings, those are going to continue to be delivered, that at a much more attractive valuation then in september. unless those business models are deemed to be purely broken, i think that's going to continue to lead the way higher here. nonetheless, you look at the faang -- on the fang, we are not going to get new fresh highs for several weeks. there was some overvaluation, no question. but the fundamental earnings

thength, and in particular sort of volatility adjustment earnings that those become buddies have been putting in the past several years, i don't see a reason for that to change. they can deliver that -- if they can deliver that in 19 and 20, they will lead the way higher in the spx. purves joining us. users can interact with those charts. you can catch up on key analysis and save those charts for your future reference. this is bloomberg. ♪

standard chartered is said

to be weighing a plan to supply its control cost across its operation. we are told it's exploring how to create liquidity and lower expenses at its different entities. sandra told bloomberg it will outline -- standard told bloomberg it will outline plans in february. bloomberg's sources said the potential deal could be worth up to 2.3 billion dollars, although the review of the operation is still in the early stage. no final decision has been made. they make industrial robots and automated manufacturing systems. it could attract interest from china. ramy: reports say tencent is meeting up with a chat operator to offer mobile services for small retailers. it is aimed at having into the surge of tourists from china, and the partnership will compete with the service offered by softbank. service is scheduled to start in the new year. coming up, it looks like he's

gone for good, at least in japan. we ask what his ousting from mitsubishi motors means for the three-way auto alliance. this is bloomberg. ♪

haidi: markets have been trading for 30 minutes. kicking off the asian session on a positive note. wall street ending after the things giving week. we are seeing a little more risk creep back into equity markets. by 4/10 of 1%. we had the recovery in oil branding, which helped a big part of that return to risk. here ink its 6:30 p.m. new york, s&p futures are looking like this. this after the relief rally that we saw during the act of -- during the active trading session. the s&p rising the most in the past 2.5 weeks.

we saw tech shares rise, we saw energy shares rise across the board. inocencio in new york. daybreaku are watching asia. let's get to first book news with just the summers. with jessica. jessica: theresa may will put her brexit deal to a parliament vote on december 11. may insists she is looking forward to the vote, despite two hours of debate on monday, dominated by credit -- by criticism from all sides. she's embarking on a nationwide tour to sell the deal. the house withto absolute certainty that there is not a better deal available. leaders were very clear on that themselves yesterday. -- jessica: elon musk says tesla came close to collapse this year.

he told axial's tesla's -- told axial tesla was draining cash. that's when an unexpectedly positive earnings to make electric cars could be financially viable. faced the threat of death due to the model three production ramp. essentially the companies bleeding money like crazy, and if we don't solve these problems in a short period of time we will die. trump saysesident he's not happy with general motor's decision to layoff 14,000 workers and close seven factories around the world. gm says for u.s. plans and one -- gm says- u.s. four u.s. plants and one in canada could be shut down by the end of the year.

india is said to poor $6 billion into state run banks to meet tighter regulatory requirements. officials say preference will begin to lenders to meet the new rules, with larger names such as state bank potentially not needing any more cash in the current financial year. indian banks are reeling with one of the worst bad loan ratios . and an update on the story from yesterday, -- the work depicts a weathered tree, bamboo shoots and a rock area it went for 58 million u.s. dollars. it is one of only two known index systems. he is often compared to leonardo division iii -- leonardo da vinci. by 2700 journalists and analysts in more than 120

countries, i'm jessica summers, this is bloomberg. ramy bank -- ramy: let's check on housing markets -- on aussie markets. take a closer look at some of these. i want to highlight harvey norman, getting 1.8%, rising the most since april after comparable sales rose 3% year to date. checking in on specific equity of 7%, we are seeing this is media gaining ground this morning after rising to the lowest level in 15 months, getting an upgrade to buy. g risingso seeing cyb the most since june. this as the recent selloff is being seen as a decent entry point, which did see citi

upgrade stocks to a buy. ground thisosing morning as it plans to temporarily shut down malaysian productions in december. we are checking in on the yen, sticking above 113. ad the kiwi dollar is holding three-day loss after an october trade deficit came in higher than estimates. we are keeping an eye on cable, giving up monday's game as markets try to read the tea leaves before next month's parliamentary vote on brexit and trump. --ghing on that deal weighing on that, that deal could be negative. she -- and sinking iron or prices have been a drag on the dollar.

later this morning, we will get an update on the health of chinese industrial companies when profits are released for the month of october. ramy: sophie with a check of the markets, thank you very much. europe, because mario draghi has made it clear the ecb will and bond purchases next month. he did acknowledge some signs of economic slowdown, but he continues to insist they will not last long. with whatays is here draghi told the european parliament. convinced growth and inflation will prevail. kathleen: that's what it appears. and this ending the bond purchase has been a long drawn out process. now they said they are good to finish at the end of the year, and mario draghi acknowledged when he answered a lot of questions from lawmakers in brussels that yes, he did see a prominent risk around the world.

trade wars, stock markets, you name it. all this is temporary. here's what he told us earlier today. the data that has become available since my last visit in september is somewhat weaker than expected at the same time -- weaker than expected. at the same time -- voluntary -- significant monetary policy stimulus is needed. kathleen: let's jump into our bloomberg and give you perspective on where the ecb, led by mario draghi, has gotten in those bond purchases. they were still going full speed ahead in 2016, they gradually come down. zero, that's where they are going to be in december. and at the same time, we can see how there was the growing hope of a stronger economy injured -- economy in europe, that seems to

have evaporated again. you have brexit, the italian budget, a lot going on at once. you get this testimony from draghi as the ecb gets ready for its next meeting to look at policy on december 13. very important signals from mr. draghi today. you outlined a lot of negatives here, so what is draghi's logic here? we are talking about if he took upon is in the wind down, maybe that would send a negative signal as well? kathleen: absolutely, he's worried about confidence predict he is seen confidence under fire in the euro area in the last couple of days. he thinks the the mystic demand will continue. at the business profit. this came out the same day as mario draghi talking. we are talking about the iso business climate index -- iso business climate index -- ifo

business climate index. stock market looking volatile, many things taking a toll. the white line is expectations also coming down, and the yellow line is current risk assessment. ,ne thing mario draghi said "remember, the end of bond purchases won't remember the end of -- won't mean the end of stimulus. -- stimulus." they aren't raising rates until sometime in on them of next year. they have a lot of securities they are holding on in their portfolio. i think that's why's -- why he's saying that. long-term refi operations, they are going to lend money to banks. to keep a good condition for the economy to keep growing.

haidi: it's one thing to end bond purchases, going into next year we have the trade war, oil prices, the energy market getting impacted, the selloff in volatility expected to be continued. think that's the question of the day, the week, the month, and as we go into 2019, i just talked about german come of the business confidence index. we just saw japan's pmi, one of the world. the oh ecb last week cut its -- its --b last week cut we are going to see a big speech in new york on wednesday. tomorrow the vice chair is speaking. are we going to continue to see maybe a little note of qualification to this idea that more rate hikes are coming? i think against this backdrop,

that's what everybody is going to be looking for. haidi: a lot of fed speak coming up. kathleen watching all of that out of new york for us. board of mitsubishi motors have followed in the steps of nissan by ousting its chairman. stephen engle continues to follow this story for us. stephen: this is the latest in the ongoing saga. let's talk about what mitsubishi .otors did the board unanimously following in the footsteps of what nissan did last week. and that's ousting carlos ghos,. the third and smallest member of the renowned mitsubishi motors alliance. this is the ceo, now chairman and ceo, speaking last night. >> to be honest, i was in shock when i first learned the news. hosn, there would

not have been an alliance achieved in 2016. i feel mitsubishi management should focus on completing the current management plans to remove any concerns among the customers and shareholders. stephen: nissan owns 30% of mitsubishi motors. they bailed out mitsubishi in 2016 after a string of scandals and profitability issues. some other news crossing the wires. ghosn hearing that carlos has told prosecutors that some of his roman numeral a should -- his renumeration has been rough -- has been deferred until after retirement. innocence,aining his according to this report, saying the payments were not definite, therefore did not need to be noted in the securities report.

the same goes for former representatives director greg kelly, who is also under detention still. he maintains his innocence, giving the same explanation to prosecutors. does this move strengthen his hand in this alliance structure? stephen: it doesn't hurt. perhaps the ceo of nissan will indeed push for a revision of the alliance. nissan could try to increase its 15% stake. it also wants to increase its voting rights, while we are hearing renault is bracing for a fight. it will try to resist any altering of this alliance, as well as the french government with a convincing 15% stake in renault. under japanese law, renault's nissan could in

be canceled if nissan raises its stake holding from 15% up to 25%. that that's going to take some struggle. bid andtry a hostile pay a significant premium. again, renault owns 43% of her -- of nissan. also, under french law if are no -- if renaultake lowered its stake, it would help nissan get voting rights in renault. somethingat's perhaps renault will probably fight. it's really a game of thrones kind of style here, where everybody is trying to get their own people, their own steaks and here. stephen engle, thank you. our chief correspondent stephen engle there. why some currency traders are -- we will talk about that next. this is bloomberg.

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♪ ."my: this is "daybreak: asia i'm remy inocencio in new york. haidi: currency traders say there's still a chance the trump meeting at the g20 could lead to a thorn in the trade war. markets positioning themselves ahead of the december 1 talks. a senior asset strategist joins us in sydney. of itways wonder how much is gamesmanship and negotiating tactics, what president trump is saying, he's unlikely to back down even if beijing puts a halt of these tariffs, doubling down in january. is your expectation still that some thing positive could come out of this week's meeting?

that: we have this view the handshake is pretty likely. details -- the details are what matter. we aren't going to see major breakthroughs. -- it'she differences unlikely a solution will be found very quickly in the next couple of days. trump's comments, the ones we made slights- he's like these and followed through. hasn'tdeal shows there been any concrete developments, the prospects are he will go ahead next year. it remains pretty vulnerable in the short-term? rodrigo: absolutely. we are leaning on the view that even if you get a liberal enough uplifting risk, it's going to fade because it's unlikely to last very long. in terms of the other

side of the equation, we have four fed speakers coming up today. we have already seen a dovish overture going into next year. a we only get two moves and pod's next year, does that put a stop to the rally we have seen in the u.s. dollar, and will it put a stop to the divergent trade we have seen weighing the fed and a lot of the other central banks? rodrigo: to some extent, that's kind of in the price already. if we look at pricing, it suggests around 1.3 or 1.4 of hikes next year goes through, and if the fed does lower, the market will still be behind the fed. from a fundamental perspective, the dollar still remains well supported, also by the fact that there is still a risk aversion around the -- around. then when you think about the dollar, the sum of its parts,

there is the you are -- the euro and the pound and the brexit lingering, and they are weighing in on the pound in the euro as well. as well is the potential of the ecb blinking. the ecb meeting is before the pmi,eeting, and the lower the lower growth is suggesting inflation may not rise as quickly as expected. a lot of arguments for the ecb to delay the guidance in terms of when they will raise rates. you planted the image that the central bank is blinking. we just had kathleen hays, our economics policy reporter, talking about how mario draghi is going to continue with the wind down there. you think that's a fair thing to do, do you think he should pause? rodrigo: i think there's a couple of things. one come at the ecb -- mario is speaking before parliament. he once again exercised the fact

that as much as he ask -- emphasized the fact that is much as he expects the ecb -- what the new forecast looks like in terms of inflation. it's probably worth noting the -- he was also speaking last night. pause inuggested the -- also the fall of 2019. a little bit of guidance there, perhaps. i think we need to wait for the forecast first. we still think there is a strong likelihood they will soften this guidance a little bit. 2 that --ramy: that's one side of the content. of course we have to talk about brexit. i want to show you, as well as our viewers, the probability of a second referendum. 40% here according to the bloomberg terminal chart.

to what degree do you think this is a possibility, and how is that going to impact the pound? rodrigo: the way we've been looking at it, maybe three or four weeks ago, there was this upside potential to the brexit resolution, which could see the pound heading up above 1.30 seven. there was a downside risk of hitting 1.20, or even below 1.20 if we had a hard brexit. now there's talk from politicians on both sides, they are not keen on this idea of a hard brexit, and no matter what happens they are keen to find a solution, no matter what that solution may be. referendum could come along, then the downside looks a little more limited for the pound. if there's no resolution, parliament doesn't go through, then we make it an outcome that is one of tina possible it is in -- one of two possibilities in the long run.

it will still be possible for the pound. i suppose the new developments say there is limited downside risk to the pound. ramy: slightly -- haidi: slightly more tradable than two weeks ago. regardless of what comes out of trade, is a more dovish fed taking the pressure off? rodrigo: yes. it's definitely the fed, and definitely the fact that if you look at it from a macro perspective, putting politics aside, it's been easy. you have a slowing in growth. we can see why it's reasonable. because of these politics involved, they are concerned about -- [indiscernible] you can't slow down the decline. aside, the trade story which i don't think the resolution will happen, i think

the slowdown in china is still there, there for the arguments are it will persist until the end of this year. ramy: great stuff. senior strategist in sydney. get a roundup of the stories you need to know to get today going. that's it for today's edition of "daybreak." it's also available on the mobile anywhere app. the mobile news on the industries and assets you care about. this is bloomberg. ♪

♪ this is daybreak asia, i'm remy inocencio in new york. haidi in sydney. united technologies has confirmed an attempt to separate into three separate companies

with a formal announcement later on tuesday. its also set to announce merger. united has been pushing for to considerestors standalone companies for its aerospace, climate control, and elevated division. century -- 20th century fox and disney are being sued for an agreement to build a theme park near kuala lumpur. that's according to court filings in los angeles. the deal was dropped because disney does not want to be associated with the gaming business. sport is moving to the internet, but the internet may not be ready. at&t was forced to make last week's paper view match free to watch after a glitch in onlineing fans with purchases. amazon came under fire for the

quality of its live stream of the u.s. open tennis. while in july u.s. soccer world cup crab urge -- world cup coverage crashed. ramy: coming up we are joined by sean darby. next. ♪

haidi: a very good morning. i am haidi stroud-watts in sydney. ramy: good evening from bloomberg's global headquarters in new york. i am ramy inocencio. sophie: and i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: our top story this tuesday, markets looking set to follow wall street higher. president says he's ready to raise it to 25%. the drama could

fundamentally change the auto alliance. ramy: breaking news crossing the bloomberg terminal in regards to the mueller probe. paul manafort has breached his plea agreement by lying. pleamanafort breached his agreement by lying, according to bob mueller, special counsel, probing allegations in the russian interference in the election. this crossing the bloomberg terminal right now. in the meantime, let's head on over to a check on the asian markets with sophie kamaruddin. sophie: asian stocks are gaining ground across the board with potential tailwinds from the u.s. session. gainingn tokyo are ground for a third straight day potentially as investors in tokyo will go up to a magnitude five earthquake that shook

buildings. the kospi gains after rising over 1% on monday. we had korean consumer confidence sliding for the month of november. trade deficit did weaken on top of softer japanese manufacturing data, plus we did get the slippage when it comes to german business confidence, so that can add to growth concerns. we did see the mood brightened for asian stocks. as investors digested the trump sticking to plans to increase tariffs, we have seen u.s. futures swing to losses, hinting at the climbed up to the strongest gains the u.s. stocks in two weeks. we did see the offshore yuan weaken on those. trading neare yen low. week after mitsubishi motors joins nissan, shares opening --

looking at a change at the start of the day after a two day event. the board votes unanimously on dismissal. the stock downgraded to neutral at nomura. , and doubtpan, haidi is cast over the nissan/renault alliance. so during the latest developments. heady. haidi: sophie -- haidi. haidi: sophie kamaruddin. jessica summers. ukip prime minister theresa may will put her brexit deal to parliament for a decisive vote on december 11, however after her plan was widely savaged, she is on course to lose. may insists she is looking forward to the vote. dominated by criticism from all sides including her own conservative already. she is trying to sell the deal.

house withy to the absolute certainty that there is not a better deal available. my my fellow leaders -- fellow leaders were very clear on that themselves yesterday. trump says hedent is not happy with general motors decision to lay off more than 14,000 workers and closed seven factories around the world. plants and ones. in canada could be shattered by the end of next year must a decision is made to allocate more work to them. shares surged on the plan, which would include abandoning lower selling sedan models. the escalating trade war sees china's exports of u.s. oil falling to zero. september's imports topped one million tons. bloomberg calculations from the data show import from huron fell 60% year on year, more than halving the amount.

trump is threatening to close the border with mexico as thousands of migrants seek entry to the united states. he claimed without evidence that the group contains criminals and said they should all return to their home countries. closing the border would have widespread implications. is america's third-largest trading partner with more than $550 billion of commerce in 2017. the united states has broken its silence on surging tensions between russia and ukraine, telling the un security council that moscow's decision to open fire at sea was "an outrageous move." protest erupted as the government imposed martial law in coastal regions and along the border with russia. it will last one month. air and at tictoc on twitter, powered by more than 2700 -- 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 am jessica summers.

this is bloomberg. ramy: we have got more breaking news from what i was just mentioning about paul manafort breaching his plea agreement by lying. this is according to the special counsel, robert mueller. these latest lines dropping saying paul manafort has denied breaching his plea agreement. this is coming out of a court filing. bob mueller and paul manafort, both have agreed that his sentencing should proceed without delay. you will remember that paul manafort, who was president donald trump's former campaign chairman, had already been convicted by a jury in august for bank and tax fraud inver -- in a virginia court. this latest news comes after a 10 day pot when bob mueller had promised that more details would be forthcoming from the paul manafort case. that is the latest. paul manafort saying that he said -- he supposedly breached his plea agreement by line.

china becauser to president says he expects to move ahead with increasing tariffs on $200 billion of chinese goods. that would be to the 25% level. he told the wall street journal he's highly unlikely to hold off a messieurs a breakthrough in his g20 meeting with xi jinping. tom mackenzie joins us from beijing with the details. what kind of deal really is trump looking for? tom: that is a good question. we are all suffering from rhetorical whiplash. a few days ago, trump said he thought china was close to want them to make a -- wanting to make a deal badly, which lifted the mood ahead of this meeting. you have comments reiterating his threat to increase tariffs on china. what he says he wants is china to include or allow u.s. companies to operate and compete fairly in the chinese market. china might point to the moves

to reform and open up the financial services sector, the auto sector, but that is seen by most in the trump administration as being not enough, so it is unlikely to assuage trump. we have also heard from u.s. officials in washington telling reporters that they want to see the chinese come up with some concrete measures at this meeting, saying the ball is in their court. if that does not happen, as trump was telling the wall street journal, that 10% to 25% that is theases -- most likely outcome. that is that he is looking to put duties on all of china's $505 billion worth of exports to the u.s. market. this could be some grandstanding by trump, some posturing, some art of the deal tactics, or it could be a genuine hardening. some might look to europe, when he threatened those auto tariffs.

pretty hawkish threats from trump were off the table. that may be a more positive scenario, but certainly, it has changed leading up to the meeting. bit more whiplash. he also had specific grievances about apple. tom: yes. so he said he would consider onbe possibly a 10% tariff apple iphones and some of their computers. don't forget that some apple products already caught up in the $200 billion worth of goods that were targeted earlier this year in september, and apple has said that it may need to raise prices as a result of that. trump saying he thinks the american consumer is strong enough to be able to take that 10% increase in apple products, which apple has suggested it would have to pass on to its consumers. it is interesting. trump has said a number of times that the solution for apple is

just to relocate its factories and start producing iphones in the u.s. many would say that is far-flung , to say the very least. incredibly improbable given the supply chains. components from 25 countries. that apple is one of those u.s. companies that could be targeted if these trade tensions continue as part of their qualitative nontariff barrier measures. when you talk to u.s. executives operating in china, they say they have not seen a pickup yet, but that is something that is in the cards for the chinese should there not be a de-escalation. the two countries are looking at this summit at the g20. even if they get this deal on trade, there are all the other issues around cybersecurity, geopolitics, that were made for these two sites. -- sides. haidi: tom mackenzie in beijing.

as we move towards that g20 anding between president xi trump, let's take a look at market action. trade getting underway in asia. a positive overture from the u.s. as the tech rally was dominating the recovery from an awful week. garfield reynolds. tom was mentioning it seems like we are going to have a lot more grandstanding and mixed messaging going in the g20. how are they positioning going into this meeting? garfield: i think perhaps trump 's interview with the wall street journal overnight might have been a bit of a favor because the temptation would have had to have been the g20 coming up, they might get a deal, that will be happy-happy joy-joy time. stocks got pretty cheap. this may well act as a vaccination almost for markets and what might happen if things do not quite so as well as they

could and in particular, you know, as tom was mentioning, the best case is even if there is some progress made, the 25% tariffs, i mean, that is laid down in the measures when they introduce it. 10% tariffs on $200 billion of 25% in january. there is no reason for the trump administration to remove that unless they have got a really good deal and the trump administration has been donaling that any deal they strike at the g20 is likely to be a framework, likely to take time to go forward. so why put the stick away even if you have got some carrots out? ,aidi: as we end out the year the strategists are saying it's kind of got to be more of the same. garfield: the zeitgeist has completely turned around in the

last three months. big february correction, and then wall street went back to rallying. if wall street can rally in the face of this, even if other markets might not be doing so well, that they can come back, because that shows the world's largest economy is still traveling well. int has been wiped out october. now, people are focusing on the idea that 2019 is going to see slowing global growth, but not sufficient to get the fed fully pulling back from its path. then, there are concerns with what goes on in europe, it's economy, let alone italy, brexit. oil has tanked also. all of that adds into a somewhat grim outlook until early 2019. ramy: that sounds for a tasty recipe. i am looking at the offshore the right now, 6.94 to dollar, strengthening in the last 15 minutes or so. does say donald trump

follow through with his threat moving ahead into the next year on these new tariffs, this new threshold. to what extent do you think we might see further weakening? can the pboc, chemchina strengthen something -- can china strengthen something quite miserably? tofield: the yuan is likely remain under pressure almost no matter what trump does going forward because of some of the internal difficulties that china's economy is facing, and those difficulties are partly of their own making through the deleveraging campaign and partly, you know, it's not possible -- it's not been shown to be possible to constantly grow at 7% a year, which is what china was doing for a wild. there was always going to be a slowdown, a change in the shape of china's economy. that was going to put pressure on the one. the trade issue -- the yuan. the trade issue has become a part of that. if trump moves ahead with the

tariffs, that will move ahead to the yuan weakness. the endgame might be if trump goes to 25% of 200 billion and everythingariffs on chinese, that's going to have an impact. and then the economies will adjust and kind of what more can you do? either way might be that down the track, we're getting close to the bottom as far as what trade can do. the question is what happens to the rest of the drivers for china's economy? have been raised about perhaps the prudence of xi jinping's course in seeking a different sort of economy for china. ramy: that's really interesting. sinking the proverbial my to see what cap -- knife to see what's happening. garfield reynolds from bloomberg markets, thank you very much. warningead, moody's is about the challenges ahead in

chinese property market, citing slowing growth and rising costs. we will ask if there are any bright spots for developers. haidi: up next, jeffries is bullish on japan in 2019, but what about the rest of asia? derby, next. with this is bloomberg. ♪

haidi: this is "daybreak asia." i am haidi stroud-watts. ramy: i am ramy inocencio. stocks are climbing after beating down tech shares led the session for u.s. stocks in two weeks. with this week's gains, the regional benchmark is heading for a modest increase in november. if the rally holds this week, it will be the first monthly advance in a long time, since july. let's bring in sean darby, chief strategist at jefferies, and he joins us out of our hong kong bureau. good to speak with you, as

always. let's take a look at what happened in u.s. equities and the potential knock on effect in terms of asia. we did see the relief effort. futures started looking towards the downward trend. what do you make of what happened? >> it has been a reef rally -- relief rally. the long bond in the united states have actually been very well behaved, so after rising close to 3.2 percent, the 10 year has gone below 3.1 percent, and the really big drop d in oil endes is a really niceis -- really big drop in oil prices is nice. we have seen a nice easing pattern for financial markets after considerable tightening in financial conditions over the last six months. ramy: i was looking for some positivity here, and i found it

in one of our terminals from today. hop into the gtv library with me. at least with the possibility of a fed pond or power put -- fed on or powell put, do you share the optimism about that coming back? sean: we do, actually. we have begun to upgrade parts of the asian and em complex. inraise some weightings vietnam and indonesia recently and became less harris on the philippines. pretty big drops of these currencies versus the dollar. a lot of that is caused by the impact of higher prices. -- high oil prices. an expensivequite dollar and they look favorable for 2019. in many of these economies, the veryinterest rates are high and that lends us to the belief that actually these potential markets could rally

quite considerably into 2019. of your top picks is japan. the boj is just going nowhere, right? sean: i think so. i think 2019 really is about change from the tax 8% to 10% on gst, if you tighten fiscally. you have to keep monetary policy loose. curve controlled by 20 basis points, that seems to not have too much material impact on the economy. they may try to do that again towards the end of 2019, but i think you are right. the boj will not do anything in terms of changing policy. they will deliberately make sure that their monetary conditions are loose. that's a good backdrop for equities. of what has been making news over the last couple

of weeks, do you think the issue of corporate governance has reared its ugly head again? we thought in japan that's right had been made. saga.e this nissan is that something investors should be concerned about, that transparency and progress has not actually been made despite all of the negative headlines? ell, i think jeffries has done a lot of work on this in our tokyo office. the has been a change to this in some of the boards in our japanese companies, but most notably, you have some of these problems appearing in other western markets. the u.k. has had issues with some of their ceo's as well. some of this comes down to the actual strong personality issue, which is also part of the problem and companies like nissan and wpp in the u.k., so it is part of that cult sometimes that determines corporate governance rather than

to say there is an issue with financed's by -- mel malfiance and companies. they have a strong personality. go, asefore we let you we count down to donald trump and xi jinping meeting, you have the shares as bullish. we have the trade war headlines we got in addition to real estate falling. is now a good time to go in? sean: it is, in our view. the central bank is going to keep on a very least policy of the 2019. more importantly, there is a huge set of tax relief issues for the consumer in the early part of next year and that gives a big underwriting for the equity market in 2019, so yes, a

lot of the bad news is in the price already. always appreciate your time with us, sean darby of jeffrey joining us in hong kong. much more here to come on "daybreak asia." this is bloomberg. ♪

ramy: this is "daybreak asia." i am ramy inocencio in new york. haidi: i am haidi stroud-watts in sydney. let's get you a quick update. united technology has confirmed an intent to separate with a former announcement later on tuesday. -- formal announcement later on tuesday. it has a merger with rockwell collins. it has been pushed by activist investors including bill ackman endemol to consider standalone -- and dan loeb to consider standalone divisions. ramy: tencent is teaming up with the operator to offer mobile payment services for small

retailers. the nikkei news to says the tie up is aimed at tapping into the surge of tourists from china and it will compete with a service offered by yahoo japan and softbank. lion will lease terminals of wechat pay in the new year. 21st century fox and its soon-to-be owner disney are being sued for ending an agreement to build a theme park near kuala lumpur. they are seeking more than $1 billion in damages according to court filings in los angeles. they say the deal was jobs because disney does not want to be associated with a gaming business. oil looking for direction as top exporters prepared to discuss .supply in the meantime, let's take a look at how asian markets are trading in the asia-pacific. inhave lending positivity

the asian session. in the asian session. korean chairs also seeing some upside and that energy produced -- korean shares also seeing some upside. is heavily weighted as it is in sydney as well. lots more to come. this is bloomberg. ♪ ts more to come. this is bloomberg. ♪

haidi: it is 8:30 in hong kong. we are just one hour away from the open in the trading day. it broadly positive future. modest gains on the recovery rally led by the tech rebound in the u.s. overnight. u.s. futures looking like we might be giving that up. i am haidi stroud-watts in sydney. ramy: i am ramy inocencio in new york, and you are watching "daybreak asia." first word news now with jessica summers. musk says tesla came close to collapse this year as it launched an urgent and possibly drive to move production of the tesla three. he told ask euros that -- ask euros that tesla was strict --

axios that tesla was draining. makinge earnings suggest financial cars could be financially viable. a severereally faced threat of death due to the model three production ramp. essentially, the company was andding money like crazy, if we did not solve these problems in a very short period of time, we would live. haidi: nasa celebrating the successful arrival of its lander on mars. thegh-speed descent through atmosphere described by mission control as "seven minutes of terror." it was programmed to decelerate to just eight kilometers as it reached the surface. it will deliver more information about the martian interior. runa will help state banks meet tighter regulatory requirements. preferences will begin to lenders a struggling to meet the

new rules with larger names such potentially not needing any new cash. indian banks are really was one of the worst bad loan ratios among the world's top 10 economies. fromdate on a story yesterday, a 1000-year-old chinese scroll has fallen short of a record for asian art at auction. the work depicts the withered aee, new bamboo shoots, and rock. it went for $55 billion in hong kong. it is one of only two bank known known in existence. he is compared to leonardo da vinci. 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 am jessica summers. this is bloomberg. haidi: thank you. let's take a look at how asian markets are shaping up to five this morning. let's get it over to sophie in hong kong. ofhie: here is a snapshot

the action this tuesday morning. muted gains for stocks across the board. the nikkei 225 gaining about enthusiasm.much we are seeing a little bit of optimism. treasuries holding steady. oil's rocky ride continues. u.s. futures have swung to losses this morning. political headlines weighing on sentiment as we learn that paul manafort was found to have breached his plea deal by reported . also checking in on the offshore lying. by reportedly also checking in on the offshore yuan. checking in on some stock movers of note, lion, the biggest mover on the regional benchmark, jumping over 16%. on the other side of the spectrum, spi slighting as bitcoin's crash deepens with the

cryptocurrency below $4000. i is exposed to that slump. i want to highlight korean engineering gaining ground after soaring 30% on monday. construction stocks are getting a boost. nufarm iss rising -- rising in sydney. this as the agrochemical players are expected to be a game changer for the company, haidi. haidi: sophie kamaruddin there on the markets in hong kong. taking a look at the energy markets, the biggest gain in months. the oil exporters prepare to despitebal supplies output from saudi arabia reaching a record 11.2 million barrels per day. let's get it over here in sydney. james thornhill has more.

and there is increased optimism as we going to g20. these expectations for some sort of conclusion on the oil market is bigger than what we are hoping out of trade. james: that's right. some of this optimism has been fueled by the fact that -- excuse me -- the saudi and russian oil ministers will also be attending this g20 meeting, so that the old that there might be -- fueled that there might be something coming out of this meeting. no surprise really that we have got that speculation that has helped the price a little bit. will there actually be agreements? that's the big question. minds, if yoused could put it that way, about the need to tighten production to at least shore up the price, but also, you have got to also accept the fact that there has not been a lot of consensus about lowering that production. haidi: you look at the market reaction that came on the saudi's side that they were

going to cut .5 million barrels come december. does that seem like enough? james: that has been well flagged. if they do through with that, i do not think that will have much impact on the price going forward. the cuts are going to have to be deeper than that. the question is whether they can get consensus on the other parties, because of course, if saudi arabia does amount to deeper cuts, they are cutting their own market shares. not really in their interest. u.s. production is ramping up. shale exports are starting to come on screen. do all the cannot heavy lifting themselves on this front. ramy: even smaller change is to the supply story and leave it to large moves and oil here. james: yes, that's right, and going forward, the one thing we is -- sure of is

volatility. we have discussions about production cuts. on the other hand, we have got geopolitical tensions, which of course are an ongoing in the excepted for the markets. we have u.s. china trade tensions continuing to rumble on and in the last couple of days, we have the flareup between the russia and ukraine, which is another factor for oil traders to consider. the one thing we can change is that it is going to be a bumpy ride. ramy: when is it not? james thornhill. the meeting with opec and its allies. meantime, the office of u.s. special counsel robert mueller says former trump campaign manager paul manafort has violated his plea deal by relying repeatedly to federal investigators. manafort has denied the accusation. air ball bank -- derek is an washington, d.c., for us. what has changed in the investigation and why does this matter? >> think you very much. this is a big development in the special counsel's investigation.

we are not sure where the office of robert mueller things that paul manafort may have lied. they say they might be filing reasons for that in a coming filing, but to be really clear, the office of the special counsel says manafort lied on a variety of subjects, suggesting not just one pretty little white lie, but actually sustained and continuous. attorneys,hrough his is denying all of this. he says he complied with the plea deal, but look, if robert mueller is looking into the idea of the trump campaign possibly colluding with russia in some form, getting a plea deal from his former campaign manager is quite a big coup. bigemains to be seen how this is, how big of an impediment it is for mueller's

investigation, it also remains to be seen how big of an impediment it is for manafort. his plea deal was supposed to be keeping him out of jail, and now, he faces 10 years. ramy: you said there were a series of lies or allegedly lies. do you know any detail with regards to what those allegedly sexually were? derek: no -- allegedly lies actually were? derek: no, we don't. second be putting in a filing that spells all of that out. they had to say to the judge, look, this is what he was supposed to be telling us. here is what he actually said. all this stuff will be spelled out in some detail. not sure if it will be deducted in some form. not sure what it looks like. it is a little too early to tell. that should be coming out at some point, and we will get a better idea of where this is as well as how central manafort maybe was to the probe and how much this may or may not have set anything back.

it is a little bit too early to tell, but certainly, you know, this is a justifiable red headline flashing across your terminal that manafort may have violated some terms of his key deal. what it mean -- plea deal. what it means, too early to say. keep watching. haidi: in terms of procedurally, we are expecting sentencing for him in early february. what happens between here and then? derek: we wait and see what is in this next filing, i think, is one of the things we are waiting on. we are waiting on a fair number of other things in the mueller probe. there is talk about what may have gone on with roger stone. the trump associate, what may have happened with jerome corsi. various other things. there are many players left in this that we are waiting to see where the indictments come. mueller's investigation,

from everything we can tell, is still proceeding on apace. there has been no move to inhibit it or shut it down. we are still full steam ahead. ramy: great stuff. bloomberg's derek wallbank in washington, d.c., breaking down the latest news about paul manafort and his relationship with the robert mueller special counsel investigation. let's head over to europe because mario draghi has made it clear that the ecb will end its bond purchases next month. he did acknowledge signs of economic slowdown but continues to insist that they will not last for long. kathleen hays is here with what draghi told the european parliament and why. he says he thinks this is not going to stick around for long. reasons behind this? kathleen: partly because he is seeing the ups and downs and

trying to reduce stimulus and the bond purchases by the end of this year, move on to the first interest rate hike next year, maybe spring or summer, and he acknowledged prominent risks are out there. stock market volatility, all the things you have been seeing lately. he does see the science of some slowdown, but he does not think they are going to last. jump into the bloomberg library with me. #gtv. what you can see here is these blue bars, these nice blue bars, the height of the bond purchases in 2016. here is where the real tapering starts, and here is where it will end in december. he has done nothing to change that view. of the european economy growth have certainly improved, and many people credit these bond purchases, but they have declined as well. we get all of this just before the ecb council is going to meet on december 13, so another big central-bank meeting where nothing new is expected. just more of the same. mario draghi giving a signal for that today. haidi: if you look at the anemic growth picture, what is his logic in terms of winding up bond purchases as planned, going ahead with it next month?

kathleen: he is confident that domestic demand will continue to be strong and help boost wages, boost prices. that is want to boost inflation, even though he sees euro area pmi's, purchasing managers index is have been softening. german business confidence, the survey shows it has slipped again, so let's go back into the bloomberg library now. look at another one of our #btv charts. here is the main number. you can see it. there was a lot more optimism. trade war, concerns, this has gradually worn down the current view of the euro area economy and what people expect to come next. i think it is very interesting today when he spoke to the european parliament, mario draghi and peter france said just because he stopped buying bonds doesn't mean there is not going to be stimulus out there,

because they are reinvesting bond proceeds as they mature. our forward guidance is that there is no hike coming for probably almost a year and we are going to be holding a lot of bonds. barclays and others expects they are going to be announcing early next month targeted long-term refinancing operations. i love this. i think we are going to hear a lot about that. long-term loans on the condition that they are not going to use it to buy bonds. and they are going to lend it out to you avoid any kind of tightening of credit as they finished purchasing these bonds and as they get set up for sometime next year, the first rate hike. it sounds like a good plan so far. we will see how it goes. haidi: kathleen hays with a look ofwhat it has coming ahead it. lots of uncertainties, not least of which is brexit and italy. lots more to come on "daybreak asia." this is bloomberg. ♪

ramy: welcome back. this is "daybreak asia." i am ramy inocencio in new york. haidi: i am haidi stroud-watts in sydney. the outlook for the chinese properties sector will remain stable. sales are expected to fall. that is according to moody's investors service, which adds rising financing costs will weigh on developer's profit margins and liquidity. let's get over to hong kong, where we are joined by frank. it looks like on the balance of things, the outlook is not great, but a steady slowdown going into next year? frank: that's right. the china property outlook is stable, but that is not without challenges.

the reasons why we keep a stable outlook on the china property sector is mainly because sales growth will decline and more specifically, nationwide sales will decline by 5%, but this is a more manageable level, because we have a high base effect in 2018. the second reason for a stable outlook is that while currently we have been tied to liquidity conditions in china, we expect that will not tighten further because otherwise, there will be more developments, particularly which getler ones into financial troubles. the third reason is that inventory levels will remain at a pretty healthy level. currently, the amateur level is low -- immature level is low. developers have become more cautious in their banking and that will likely increase the supplyin the nationwide

in 2019. haidi: is the ascension that we will continue to see the divergence or gap increase between prices we see in top and second-tier cities and the lower tier cities? franco: in general, yes. we see that the property demand and higher tier cds -- cities is higher. developersment for in the higher tier cities is tough because there are price cap policies that are prevalent in the higher tier cities. all the first tier cities have the price cap restrictions would limit the price that the company can sell the properties. and then on the lower tier cities, we see that there will demand in 2019, and that is mainly because some of the demand has been already the controls that

-- substantially. particularly in lower tier cities that will not be further stimulus in supporting the property demand there. ramy: you have outlined a negative as well as positive case as well alongside your driver for stable outlook. in terms of negativity, i see that you're looking at regulators tightening screws even more, funding drying up even more. what could really lead to this? does this have links happening between the china and u.s. trade dispute? franco: the china u.s. trade a directas not been

impact on the china property sector. has not gonehat it on the general sentiment on the homebuyers, and that is part of the reason why we expect the property demand in the cities will weaken in 2019. fundingexpects that the course because of the weaker sentiment, will be on the rise. , whocularly developers have high refinancing means. -- needs. conditions will tighten further. ramy: very quickly for our viewers saying i am not interested in buying chinese property, but how about elsewhere? to what degree do you think there is a better return out there? in the united states, in new

york, all these folks are saying, listen, the chinese are buying these properties. franco: mainland chinese still buy properties mainly in china. there is only a low portion of our people going overseas. and they go overseas for various reasons. in general, they will be subject to capital control, and we see that the money flowing outside the country is not very substantial. we see that most of the property demands are within china because this is something that the local people would have to, you know, just live in the country, right? so most of the savings and investments are still in the domestic back end.

ramy: it still is home-based after all. to us leung coming from hong kong. tv . you can watch us live, catch up on past interviews as well, and dive into any of the securities or bloomberg functions we talk about. he come part of the conversation by sending us instant messages during our shows. this is for bloomberg since robbers only. check it out at tv . this is bloomberg. ♪ o>. this is bloomberg. ♪

ramy: this is "daybreak asia." i am ramy inocencio in new york. haidi: i am haidi stroud-watts in sydney. let's get your quick check. standard charter -- uncontrolled costs across the global operation. the bank works in 16 markets. they are working out how to lower expenses at their different entities. plans inutline february. fiat chrysler surged the most in july on news it may sell its robotics. deal could be worth up to $2.3 billion. a review of the operations is at an early stage and no final decision has been made. told it could attract interest from china. ramy: bitcoin extended its

tumble, haiti, after -- haidi, putting this year's crash within striking distance of the cryptocurrencies worst their markets. cryptocurrency's worst bear market. $3000 seems to be within striking range. i mean, i remember we hit that record in december. this is in the gtv library. ,511 was hitthe 19 here and we have gone down, down, down. 80% is the loss we have seen from bitcoin. look at the relative strength. it is way in the green. if you wanted to follow technicals, you might want to follow this, but a lot of investors and analysts say we do not think there is an end in sight. haidi: it is always hard to talk about technicals and fundamentals when it comes to cryptos because of how new the asset class is.

where is the floor? we have a story on the bloomberg saying we are seeing minors shutting down as well. the amount of energy devoted to mining has come down 24% from an all-time high as well. let's take a look at what's coming up over the next few hours on bloomberg tv. what are you watching? rishaad: in the absence of any major turn, we do have numbers out of china showing industrial profits year on year. this is an interesting way of looking at what may be happening with growth because it does dovetail into nominal gdp. 4.1% growth. we have had amazingly wild swings over the past year when it comes to industrial profits. we will have a look at what is expected, indeed what does transpire. looking at the level of the one. -- yuan. the authorities do not have a problem with them crossing that

psychological level of seven. there you go. ♪

♪ rishaad: 9 a.m. here in hong kong and shanghai. welcome to "bloomberg markets: china open." yvonne: your top stories this morning, the moon has darkened on president trump's new trade threats. >> yes, he says he is ready to add a 25% tariffs, and says consumers can actually handle tariffs on iphone from china. and -- that has notdea been since 2014 on fundraising. ♪