>> australian markets have just opened for trade. sherry: shery ahn. >> am sophie kamaruddin in hong kong. welcome to "daybreak: asia." haidi: our top stories this friday, washington welcomes china's initial moves on trade but concrete action is more important than mere gestures. the economy shifts from high-speed expansion to high-quality growth.

and for years and a trillion dollars later, mario draghi brings the ecb record bond buying program to an inch. shery: let's get started with a quick check of the markets. it was a mixed picture with the dow gaining ground for second session. the s&p 500 finished unchanged. gainings, real estate ground but we saw banks feeling the pressure. the s&p 500 finishing at 2650 while the nasdaq fell .4%. a lot of headlines including on trade. wilbur ross making comments and president making comments as well. and a bit more uncertainty as we heard that china has detained a second canadian citizen. s&p futures under pressure, down .3%. caution -- caution remains

going into the last trading day of the week. site gains for the asx 200. morning we are seeing bhp billiton leading the gains so far but stocks and wellington are under pressure this morning. a little bit of christmas colors on the screen, some red and green coming through with a mixed start for asia. and downs we saw over the past four or five days, let's check on how asian stocks fared over the course of the week. the white house calling for china to do more to end the tariff war. what chinese leaders will say at next week's economic policy summit will be key as we wait to learn priorities of 2019. get a sense of whether

policy measures have led to stabilization. we will get a read on retail sales, factory output and fixed asset investment from china. from japan, a pulse check of japanese manufacturers in the fourth quarter and a final read on japan's factory outlook for october. india, the new r.b.i. governor will attend his first board meeting. his appointment is seen to be positive for markets. in stocks have enjoyed a three-day rally that could perhaps push the sensex to a weekly gain. hearing out of that you council president as well as the e.u. president of the european commission, both speaking and briefing reporters in brussels on the latest state

of play. the e.u. stands by the november brexit deal that has been negotiated and it will not be renegotiated at all, so doesn't appear that may has gone back to london with any start up sweetener for that deal that she had such a hard time pushing through parliament. shery: and elaborating on that, talk about the difficulties of ratifying the deal. we heard in a speech that if the deal is not fixed it would be hard to pass through the u.k. parliament, also saying reassurances from the e.u. change the dynamic in parliament . theresa mayve seen survive that no-confidence vote just yesterday. e.u. leaders coming out and

talking about the difficulties of the deal and angela merkel saying if that backstop on northern england is used that they will do their utmost to make sure it is short-term. the key point among all leaders is to make sure to emphasize that the backstop would be temporary. witht some other news jenna dagenhart. >> the senate has voted to we try u.s. support for saudi arabia's war in human as punishment for the murder of dissident journalist jamal khashoggi. president trump has triedpresido minimize the prince's responsibility. 14 mean people are at risk of starvation in yemen as a result of the fighting. the ecb is ending its historic stimulus program while warning that cows are gathering over the eurozone economy. that purchase of bonds.

this month after almost four years of easing. the government council says it is a long way from tightening policy and rates will remain at record lows at least through the middle of next year. manrts from strasburg say a has been killed in a shootout with police and is not clear if he is the person who killed three people earlier this week. officials say he opened fire and was armed with a pistol and a knife. a fifth person has been arrested in connection with the christmas market attack. his parents and two brothers are also detained. global news, 24 hours a day, on-air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jenna dagenhart. this is bloomberg. shery: the nasdaq closed lower. investors focused on the latest trade related headlines and what

is ahead for the fed. su keenan joining us with more. this seems to be the key theme that has been playing out for the last few sessions. >> bond investors want to know what is going on with the economy, what it means for interest rates and stock investors are all about the straight headlines. let's go into the bloomberg because we have seen an interesting shift. a lot of investors selling the rallies, and that's what you see with the fourth quarter volatility, it is all about selling as opposed to buying when the market drops. 2018, butearlier in that appears to have been specific to those volatile times, not these. you see the bonds relatively unchanged, the dollar advanced on the latest economic data, showing a lower than expected jobless rate.

retail banks and the index were really where we saw the weakness. one of the retailers projecting a week holiday season for sales. that seemed to not many of the retailers down. oxford industries involved in menswear, and notice the financial groups it in a big way. adobe software came in above the line in terms of their forecast. and the cloud unit grew by about 25%. haidi: thank you so much for that, su keenan. wilbur ross is china will need to do more than what it has promised to aid the trade tensions.

>> one is categories they feel are off the table, one is categories a claim to some degree or another they have already addressed, and the third , which is a quite large category, its items they are prepared to address. so we have a pretty good roadmap of what the issues are. latest from get the our congress editor, joe. apparently they want more, even though this is encouraging. we've had the resumption of soybean purchases and the like. >> in the commerce secretary said those are very welcome, but he called them very preliminary. the u.s. has a list of 142 items that it wants resolved, things like dealing with intellectual property theft, the forced

sharing of technology for u.s. companies that want to do business in china, issues on currency. the chinese have taken a few thes limiting or removing retaliatory tariffs on autos and they have resumed soy being by. the u.s. wants to see more. ross and other officials were not really specific as to what they say will be enough. we are in these 90 days where they are negotiating some sort warruce or end to the trade , and the u.s. is about to the increase in tariffs on additional chinese goods, at least until march 1, while the negotiations are going on. that the u.s.teps

is keeping pressure on china to do more, and those will be part of the talks that go on between now and march 1. in terms of the auto part of the trade war that is one the aspects that president trump has said the terror action does not really go far enough. the chinese will remain having 15% tariffs on imports of autos from the u.s. the initial though irritant in the relationship has been removed. but they have dialed back but was for theation steps the u.s. has taken. to zeronts them to go on terrorists. that is a long way from the 15% now. it is unclear if they can get pat done before this next

eriod. haidi: we heard from president trump today talking about his fantastic relationship with chinese president xi. yet we have seen the second canadian detained in china. we have no idea if it is related to huawei, but the speculation is there that trade tensions could rise. how are we looking on this? >> the presidents aides have continued to insist that those two things are on separate tracks. suggested he might be willing to put them together with a trade deal by suggesting he would intervene, which would be something that several experts have said is a risky sort of move. two canadians who are being detained in china.

either the u.s., canadian, or chinese government are saying they are related, but the proximity to the arrest and the subsequent tussle over x -- extradition to the u.s. is at least intriguing. whether that will become part of the trade talks is something that some trade experts are hoping will not be the case. right now they are proceeding on strictly the issues involved and the court cases proceeding separately. shery: thank you so much. president trump has a lot on his plate. in a moment we will dive into some of those issues with the former advisor to the republican presidential campaign. haidi: bank of japan is set to release its latest survey on business confidence.

this is bloomberg. ♪

that: we just wrapped up european union press conference in brussels. the european commission president speaking of recently, saying he has heard an impressive variety of views from the u.k. parliament, saying theresa may is fighting hard, but we have not actually seen the results. in terms of a future relationship, our u.k. friends need to say what they want instead of asking us to stay -- to say what we want. jean-claude juncker telling reporters that in brussels. he wants the u.k. to set out their expectations and said the debate is nebulous and imprecise and he would like clarification.

theresa may has gone back to the e.u. to try to get strengthening of the wording on the irish backstop order issue, but it doesn't look like she will get that to the extent that it will make it easier to push the bill for parliament in january. shery: and the sun reporting that senior tories will try to persuade the prime minister to resign by next spring. of course we just saw the prime minister surviving that confidence vote, and now e.u. leaders talking about her brexit and the president saying the e.u. stands firm by that november brexit deal and he will not renegotiate it. german chancellor angela merkel at one point in the meeting saying that if the backstop is used, they will do their utmost to make sure it is short-term. it seems to be the emphasis right now that they want the backstop to be temporary, until

they find a better solution. but of course it is trying to find a solution that will sit well with other members of , as weent in the u.k. saw 117 members of parliament vote against the prime minister in that confidence vote. we will continue discussions on brexit. let's turn to another headline, all to do with trade in china. cfo hasst of the huawei thrown a wrench into the fragile trade truce between the u.s. and china. our next guest says it is unlikely that either side will allow it to derail the progress made at the g20. spring a veteran of policy and politics in the george w. bush administration and a policy buzzer to mitt romney. always great to have you with us. although we are not expecting derailwei cfo talks to

trade talks, what does it show about the dynamics between the u.s. and china right now? >> it is an incredibly fragile time. both sides potentially have a lot to lose and i think they both realize that. that's why fundamentally both the chinese and americans have said they don't want to allow this arrest to disrupt potential progress in discussions with respect to this 90 days we are in. is very clear that we are in a time, one where anything could upset the balance, but in some ways that clarifies the on just howe bit important these negotiations and discussions are to both countries and to the asia-pacific region. shery: we still have a long way to go, but will president trump prefer to carry on trade tensions with china and try to unite his base, or will it work

better if it gets a win and be able to tout that? lanhee: i think if he is able to get a win, that is more important. from a public opinion perspective, his activities on china and the imposition of tariffs is not playing as well politically as it did maybe a few years ago, or even more recently than that. what the american public is starting to see potentially is that the negative impact of these tariffs is starting to take hold in places like iowa, where the president needs to do well if he wants to get reelected. i think he would rather be able to say he addressed the issue in china, he got them to concede on something, and move on. goes, i don't think politically it is helpful for him. haidi: how much of an inconvenience or threat is the

whole huawei scenario, as we've seen to nationals being detained in china. bitainly making things a messy for washington is they're trying to get things done on the trade site. beijing has been very aggrieved by this. there are american business leaders who are expressing concern about travel to china and the ongoing tensions and how it impacts their ability to do business in china. it goes beyond the relationship between canada and china and moves to the fundamental question of what is happening between the americans and the chinese right now. the issue is the uncertainty is creating for the business community in the united states and the importance of that trade and relationship between the u.s. in china. that is what is at stake here. that: there only reports

presence inaugural committee misspent some of the money at raise from donations. as we speak, sarah sanders is commenting on that, saying the report on that committee probe had limited engagement with the inauguration committee, that the president was not focused on inauguration planning as we hear that federal prosecutors in manhattan are investigating the inaugural committee for this spending some of those funds. we have seen several lines of investigations on the president's campaign, whether it's a motor investigation on russia or obstruction of justice, or whether it is former private lawyer michael cohen. what will be the biggest issue here?

we still haven't seen anything out of the mueller probe as of yet. lanhee: i think you will continue to see the white house take the spine that the president was separate and apart , whether it's the actions of henl manafort or michael co or michael flynn. i think what the president and the white house will say is these are people acting independent of the president. at what point does it begin to drag him into it? what is very clear is that the white house is doing everything they can to isolate the president away from this activity, whether relating to the inaugural portion of the campaign or to the campaign itself. haidi: you have to wonder at what point does all this a gimmick. i'm wondering in terms of the revolving door at the white house.

the report was quickly refuted by officials saying that jared kushner was now in the running to become chief of staff. does this indicate more of the chaos going on within the administration? lanhee: it is an unconventional administration, to be sure. i guess is it may end up being someone we are not talking about order has been limited speculation. other think back to a chiefts, they needed of staff that would be traditionally angel -- able to manage the staff. what the president is looking for is someone who can go out and make the case for him. i would look to someone like mark meadows from north carolina , chair of the so-called freedom caucus. he is able to articulate the

it is moreessage and likely than in conventional choice of someone that might be seen as fitting the chief of staff model. shery: always great to have your insights, thank you. oil closed at session highs in the u.s. because of us if -- the price fall in the domestic inventory. other factors lending some bullishness. what is the story here? was a surprise drop down of 820,000 barrels for the week most recently ended. we can see that prices did rise. your crude up by about .5% right now. brent crude not trading in asia but up 2% in u.s. trading as well. 10 days orighest in

so. looking to the future, it turns out there is an interesting aspect about iran and venezuela. this chart looks at where things would be headed in terms of total global oil production. actual opec output could come in at the magenta line, in the middle of your screen. if the unplanned losses come to fruition, that could fall to 31.5 million barrels a day and then fall even further to just over 31 million barrels a day. that would have a knock on effect in terms of higher prices. one person was known as the god of oil would be andy hall made something on the order of $100 million in the past 40 years working at bp. he spoke exclusively to our alix

steel. at,o use that old commodity price skills price. not only willaft impact the supply side, demand will also respond to that kind of price move. on balance, if you want to place a bet on oil right now you are probably better off betting on it going up than going down. acs had a pretty good strategy over the past 40 years. they could about the future, china is not just lurking in the wings, but possibly buying more as oil continues to fall. that could only boost the oil price even further. next, the pbocp governor says china faces from trade pressure

restrictions. we will be live in beijing, next. this is bloomberg. ♪

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leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. >> markets have been trading for 30 minutes and we are seeing a downside when it comes to the friday morning session here in city. we have had a topsy-turvy session on wall street. the aussierrest for dollar trade dollars -- traders. >> s&p futures are not doing much. pairing back an earlier decline. as haidi mentioned, it was a

seesaw day on wall street. the s&p 500 ended unchanged. it is a very foggy day in new york. haidi: just barely making out those city lights. it is a gloomy sydney morning. you are watching daybreak asia. let's get you the first word news. trump has reaffirmed his decision to punish general motors for closing plants in the u.s., saying it is unacceptable so close to christmas. jobs andut 14,000 close seven factories around the world, including one in ohio. president trump said he would block any federal subsidies gm receipts. president trump: i do not run a car company, but not all electric is going to work. it is wonderful to have a

percentage, but this model she is going into is a mistake. but you tell me a few weeks before christmas that she is going to close, not acceptable to me. she has to open fast or someone else will go in. but general motors will not be treated well. >> china is being warned that gestures will not settle the trade war and concrete measures are required. beijing might offer some concessions washington is demanding, such as lowering tariffs on u.s.-made cars. wilbur ross bloomberg china's initiative moves are welcome but more must be done. determine if it succeeds or not based on how many do we get with what clarity and measurability and with what enforcement capabilities. those will be the key determinants. an agreement is fine and useful,

but it really only becomes a living document if you have a means of enforcing it. >> the imf is the latest institution to fall through america first program. followthrough president trump's america's first program. they argue a well-funded imf is a key player in the global safety net such as the loan to argentina. the treasury says it does not support increasing funding. record amountt a last year. more than double the per average capita income. borrowing is led by the u.s., china, and japan, highlighting potential risk to growth. public and private debt is equal to about 220 5% of gdp.

225 percent of gdp. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. let's take a look at aussie markets in the friday morning session. sophie is in hong kong. not much inspiration to be found. sophie: aussie shares are falling for the first session. the aussie dollar is holding onto a three-day gain, staying above 72 ahead of the china's -- chinese data. aussie bonds are steady and there is the idea the rba will be forced to cut. that will cause pressure on the aussie dollar. have the aussie off by 1% so far this month. this is rate cut prospects that could cut further. into the $.65 range.

for the week, the aussie dollar is stronger. areumer staples stocks dragging the most, along with tech. ,ine entertainment losing 4.1% giving up some of thursday's gain. and a company announced rob single is to step down in 2019. simmer group is gaining ground. group is gaining ground. a takeover offer is that a 39% premium. stock seeing gw group look flat.

it is than the risks to the eurozone economy are now on the negative side of the growth ledger. kathleen hays is here with comments that are being echoed by central banks around the world. the ecb is taking a dovish turn following the fed and bank of canada. sayleen: the ecb might even they took a dovish turn. how dovish is it? he isdraghi would say concerned about the economy but has confidence in the consumer. they have raised a question but have not sent a strong signal yet. this is how traders see it. let's get to the ecb. and $3 trillion

worth of bond purchases, mario draghi confirmed it is over. about politics, protectionism, trade war, fragility of emerging markets. so he is still confident in the consumer pushing the economy forward. let's look at the bloomberg so you can see the big picture view of what we have been seeing in the euro economy. we are seeing these green bars getting smaller this year. growthe quarterly gdp has been on a downtrend, as is the euro zone purchasing managers index. a gauge is manufacturing but it is tied to the overall direction of the economy. bloomberg economics says that these were dovish and this means this is a september rate hike we could see the ecb waiting until december to make a move.

as for other central banks, switzerland, norway, they are concerned about risk. considerable damage around the world. the bank of france is worried about the protesters who are concerned about rising gas prices. they think that will cut their economy. the pboc mentioning in their view that they are facing headwinds. context,eresting bringing up the federal reserve to see how that will fit into their discussions at this big meeting tuesday when they are expected to raise the key rate more. it will send important signals about what they will and will not do next year. haidi: the debut of the new has met the and he big indian banks already. what do we know about these concerns over central banks?

it was one of the biggest state run banks and they are making demands the r.b.i. will not comment on. meeting with him, this is what governor doss's style is, the new head of the r.b.i.. as there 18 member board meets tomorrow, it is people from the finance ministry, industrialists, and they will discuss a proposal which urges patel, the predecessor, they want closer supervision of the central bank. the bank is pushing back. they want more liquidity. they do not want the central bank telling them how to clean up their books of bad debt. they are concerned about the r.b.i. not wanting to bailout shadow banks, which helped fuel growth and investments which is a big concern for the central bank, not wanting to build about and teach them a lesson. that was patel. we will see what happens under governor doss.

haidi: that was kathleen hays. the people's bank of china says the economy is facing increasing downward pressure and monetary pop -- monetary policy will continue to be supported. the nation is shifting from high-speed sanctions to high-quality growth. tom mackenzie joins us in beijing. the monthly indicators? what other highlights about the fragile balance in the economy at the moment? tom: you will not be surprised to hear the main challenges he highlighted at the university speech was the external pressures from the trade war but also domestically the attempt by chinese policy members to rein in the shadow bank sector. particularly highlighting the slowdown and infrastructure spending. he talked about debt levels. that has been a topic today. he says overall macro debt,

total debt is 250% and has been at that level for two years. pretty stable. prescriptiony around attacking it is to let the pressure out slowly well being prepared to support the market as external shocks. he talks about other measures. he says the benchmark rate has remained on hold. there has not been a cut recently. he says the seven date repose has reduced in the last few months and the data is starting to ease some of the pressure around liquidity, saying the focus for them is liquidity in the market. they are prepared to step in when there are external shocks. he talked about the growth picture going forward, saying we should expect slower growth but higher quality growth. the expectation from economists we have surveyed is you will get slow to 6.2% will

in 2019. fiscal metals have been put into place. started toreally have a significant impact. you might start to see in 2019 if trade tensions continue more pressure on the pboc to enact monetary policy measures. cut or at is another benchmark rate cut, it is interesting. it is becoming more difficult to read the fed rate cycle, saying it is becoming more unpredictable. that has implications on the currency and rate differential. a tastean you give us of what to expect at the summit next week? tom: next week is a big week. the bureau's meeting this week and we have an indication signal that the priorities around tackling debt and pollution will remain key priorities for

policymakers and 2019. we will have this important annual meeting among china's top leaders between the 19th and 21st. we are not expecting to get any targets out of that until they are published in march. but this meeting will set the priorities for 2019 in terms of economic strategy for the government. stanley,from morgan they think we will get additional support for the private sector an additional fiscal measures. outs at thees maybe anniversary celebration, which is december 18. we expect a speech from presidency -- president xi. it might go a ways towards addressing the concerns in washington. extent to the way policymakers and china are willing to address those

concerns and how far they are willing to go. coming up next, we are counting down to a survey. we will be live in tokyo next. this is bloomberg. ♪

haidi: this is daybreak: asia. moments away from the bank's latest survey which is expected to show corporate sentiment worsened in the fourth quarter. with rising risk from the trade the focusweaker yen, is on if catholic plans are being scale back. is the equity strategists and chief of japan fx from merrill lynch.

how supported will this be going forward? i think the dollar-yen has been quite supported for manufacturers, at least until today this year. but i think the slowdown today trade war concerns and it might be weighing over corporate sentiment as it dictates going ahead. so i think today we are watching whether the sentiment plan --ates and how the how the capex plan is revised. bias when itis comes to the japanese market in 2019. give us the rationale behind that. >> we turned defensive on

japanese equity in may of this year. year, valuation has cheapened and investors are already cautious. but i think caution is still warranted because of the slowdown that is likely to continue next year. a high level of inventory. the dollar yen to decorate -- trajectory will be to the downside next year. there is underappreciated election risk heading into the -- heading into july. haidi: we are expecting to see a fourth quarter of decline when it comes to business sentiment and mood among larger manufacturers in japan. spending plan is strong so far but we are seeing a revision. is this a result of a lack of

confidence in how japan will survive the global trade tensions? expectations we will see a deceleration in global growth in 2019? >> i would say the domestic fundamental point to a rising capex, including rising -- i think as long as the global capexy remains strong, should remain strong. but i think the question is whether the global economy can inhstand the trade tensions china and the u.s.. i would say the problem is more external than domestic at the moment. at equityyou look allocations, what would you look at that could create an

avoidance of some of the risks associated with being exposed to the regional and global supply chain and vulnerabilities coming through from potential worsening of the trait situation? situationly, in the where equity volatility of politicalause risks, defensive and domestic sectors from surgical utilities to retail tend to outperform historically. that has been the case this year. we just got the survey numbers. a large manufacturer indexes coming in at 19. it is better than the estimated 18. when it comes to nonmanufacturing index, better than expected. coming in at 24 instead of 21. also rising from the third

quarter. so we have the risk of u.s. protectionism as -- and china slow down but we have seen a support.n provide manufacturers have really felt that. the survey number is 19. capex is much higher than expected. 14.3% instead of 12% as expected. a boost from the previous quarter. let me turn back to you, because we have seen this capex expenditure really increase for the eighth consecutive year in 2018. these investments by japanese companies have been mostly in new technologies. does that give you hope they are making structural commitment? capex number is

better-than-expected and it follows a historical trend. companies tend to upgrade the capex plan in december. isdamentally i think japan facing a demographic constraint and labor shortage. it is required from many companies to upgrade facilities and introduce new technology to compensate for the labor shortage we are facing in japan. perspective, we should see a structural resilience in the capex expansion in years to come. i think the question really is how the trade war and export slowdown will impact the activities. so far, i think the sentiment is

withstanding. that is a good sign. outlook iseems the lower, coming in at 15. less optimistic than expected. the nonmanufacturing outlook stays flat at 20 but decreases from the previous quarter. shery: are these because of trade tensions? is the concern of a chinese slowdown weighing on business sentiment? >> there is a tendency that companies tend to be cautious theiroutlook relative to lives sentiment about but i a disappointing number in the outlook suggest things are going well now, but if the trade tension or china slow down starts to deteriorate, that will have a big impact on the

japanese economy and corporate profit, which suggests japanese --ity will be significantly by the passive the trade war and how the chinese economy. shery: thank you. we are waiting for the japan open. sophie is here with the preview. the dollareck in on yen. not much change to the currency in the wake of the fourth quarter survey. range such atight close above 115 for the week. as the pound is looking vulnerable. to get a handle of how sentimental -- how sentiment fares this week.

fluctuating been today for the nikkei 225. foreign investors have been losing faith and are heading for the exit when it comes to japanese stocks, dumping shares quickly. when it comes to stocks to watch, samsung. the analyst has cut their price target setting fourth quarter profits will miss consensus. stock is down 22% from 2018 -- 42018. we are keeping and i on a company that is in talks with chinese companies for a potential factory on the mainland. nothing has been cited at this time. stock is down nearly 80% this year falling to a record low. goldman downgraded j.d. i to sell on the outlook.

more research is being shifted to betting on demand from the health care industry. check let's get a quick of the latest headlines. economic models are flashing a warning on u.s. growth. 1.7 trillion dollar fund manager says the probability of a recession over the next 12 months has risen to about 30%. that is higher than at any point in the current nine-year expansion. us nextiversen told year will be as rocky as this one. general electric said something positive. a analyst upgraded his rating to neutral. he says the known unknowns weighing on the balance sheet are better understood. he says it is possible they will

be able to pull up a recovery. they are talking about reorganizing their digital business. inry: apple is expanding austin, texas, building a new campus to house 50,000 additional staff. it will cater to a wide range of business, including sales, engineering, and customer support. a statement says other parts of the u.s. are being considered for growth and facilities will be established in seattle, san francisco, and culver city. haidi: let's take a look at the asian markets. losses when it comes to the regional. trading will get underway in tokyo. australia up for tense of 1%. new zealand trailing -- trading in negative territory. we have a lot of data coming out of china today including retail sales and asset investment. we are continuing to watch developments in brussels as the

eu continues to play hardball with the u.k., saying the eu would step up plans for a no deal brexit. this is bloomberg. ♪

morning, i'm good haidi stroud-watts in sydney where major markets is open to trade. shery: i'm shery ahn in new york. sophie: i'm sophie kamaruddin in hong kong. welcome to bloomberg "daybreak: asia." ♪ our top stories this friday, washington welcomes china's initial moves on trade but wilbur ross says concrete action is more important than mere gestures. said it's time for the u.k. to say exactly what it wants. shery: four years and $3

trillion, mario draghi brings the ecb's record bond buying program to an end. a new expectations and slowing trade really dominating the markets. let's see how we are setting up for the market open in asia. aren't seeing too much enthusiasm at the start of trade in seoul. losses for the nikkei 225, down .6%. the rally losing steam in the region and aussie shares are falling for the first day in four. tech and media companies the biggest strikes in sydney. the u.s. says china must do more to end the tara war. we will learn more about the leadership priorities of china at next week's economic policy summit. yen, somek in on the risk sentiment being taken off the table. the yen holding steady and headed for a weekly loss.

the aussie dollar is holding gains after three days, heading for a weekly gain ahead of the chinese data dump. we're expecting to see some stabilization when it comes to retail sales as well as industrial output. crude above $52 a barrel after jumping to .8% overnight a saudi arabia prepares to/shipments to u.s. refiners. treasuries keeping steady this morning with a 10 year yield around 2.91%. onare keeping a close eye japan and samsung electronics. sophie checking in on the markets. let's get the first word news with jenna dagenhart. is again be more that near gestures won't settle the trade war and that concrete measures are required. markets rose on signs beijing

may offer some of the concessions washington is demanding such as lowering tariffs on u.s. make cars and dying back its plan for global tech leadership. wilbur ross told bloomberg is warm,nitial mood but more must be done. president trump has reaffirmed his promise to punish general motors for its decision to close auto plants in the u.s., saying the news is unacceptable so close to christmas. the gm boss said last month it and flowor 2000 jobs seven factories around the world, including one in ohio. the president said he would block any federal subsidies gm receives. don't run a car company, but all electric is not going to work. it is wonderful to have it as a percentage of your cars, but this is a mistake. to tell me a couple of weeks before christmas she's going to close in ohio and michigan is not acceptable to me.

she is eager going to open fast or somebody else's going to go in, but general motors is not going to be treated well. the administration is opposing a capital boost in the latest review of the funds finances. christine lagarde argues a well-funded imf is a key pillar of the global financial safety such as the recent loan to argentina. the treasury says it does not support any increase in funding. reports from strasburg salmon has been killed in a shootout with police but is not clear if he is the person who killed three people earlier this week. officials say he opened fire and was armed with a pistol and a knife. a fit person has been arrested in connection with the christmas market attack. are thers detained suspect's parents and two of his brothers. global news, 24 hours a day,

on-air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jenna dagenhart. this is bloomberg. hoax of aresa may's lifeline from brussels were dashed as either leaders say she failed to bring a clear plan for how they could help her drive the brexit will through parliament. kathleen hays is here with more on this. she was really hoping to get some additional reassurances on the irish border backstop, but that the leader is really not -- leaders are not budging. theresa may has had a bad week. she survived a no-confidence vote but it's clear the majority of people in her own party no longer support her. she had to agree not to stand for prime minister again and she implored them to let her stay and see the deal through.

but the i respect that continues to be a very sticky question. the european council president says he informed us about the difficulties of ratifying the standing byey are the november brexit deal and will not renegotiated. jean-claude juncker, european commission president says indeed, we are sticking to this position, it has been our position before and still is. here is what he said. still of the opinion that mrs. may is fighting hard and bravely but we have not seen results. underscoring their determination to move ahead and not give anymore assurances on the i respect that, john called juncker said they will start publishing their deal by november 19.

they reiterated in the statement they put out, they don't want to use the brexit backstop and don't expect too. if they do, it will be temporary. angela merkel said we will do our utmost to make it short term. but you come away from this thinking is hard to say what will happen with theresa may now and if it puts pressure on the u.k. parliament to come back to the table and allow her to find something that will finally make them come up with a deal. obviously a dark day for this whole story. haidi: and a little bit of a , it mood with mario draghi was a dovish take on it. kathleen: absolutely. they have been planning for the longest time to stop what is now a $3 trillion bond purchase. it was supposed to be 18 months. possibly the first rate hike next year in september. it is not that mario draghi was

so downbeat, he still thinks the consumer will drive growth ahead and keep inflation near its e.u. target of just under 2%. he said i'm being realistic, that big threats are looming on the horizon. he is wary and mindful of those. that is the dovish part, he is a technology that, making our bloomberg economics team say they thought the rate hike will be in september and maybe it doesn't come until december. like other central banks, norway and switzerland, you have to acknowledge what is out there. kathleen hays, thank you so much. the markets in japan trading right now and one stock surging almost 30%. what is happening? rising 21% but jumping

as much as 21%, the biggest gain on record for the stock. that just takes it to the highest level since december 27. the stock has been under so far indown 75% 2018. this happening on the back of the company responding to reports that it is in talks with chinese companies or investments in a factory on the mainland. nothing has been decided at this point but the alliances would allow for more financial assistance to the company which is seeing waning smartphone demand weighing on the screen side of the business. the company bets on more demand from the health care industry. sophie kamaruddin with one of the big movers of the early session today in japan.

great to have you on and a very happy friday to you. story,t back to the top the chaos continuing to swirl around brexit. it looks like the e.u. is playing hardball with theresa may, saying you need to tell us what you want, and in the meantime we will prepare for the consequences of an no deal brexit. what should investors be bracing for, essentially? bite're still probably a negative on cable, on pound dollar. we think there might be some more downside. i thought if they had voted it down as we expected, that might have helped concentrate minds on both sides of the channel. until we get a little closer to the brink, it doesn't look like the e.u. is as well in -- is willing to help. the no deal outcome is not good for the e.u., either.

haidi: do we then assume that you start making preparations for the worst case scenario? you cannotnson said even prepare for a worst-case scenario because essentially we don't know what it is going to look like. disagree, think we actually do know what is going to look like. we've had a number of studies in put tooons and you can fine a gradation on it. it's going to look bad for the u.k. and the e.u.. what is more accurate to say is that a lot of our clients in the u.k. may not have prepared adequately. so there is unfortunately some potential for panic. people basically have been thinking they will be sensible, have a sensible outcome and then just hope for the best. this is not looking so far like a smart bet right now. will the panic be

felt first when it comes to assets? it will be in the foreign exchange markets, in cable and sterling. case,nk that in the worst we might be looking at something like 110. it's a very uncomfortable situation for both traders and strategists because the outcome is very binary. on the flipside, if we get an milder deal, we think cable could rally to 136. figuree 25 or so big difference in the binary outcomes. the underlying message is that the current level of cable, whichever way we go, is probably not sustainable. and we saw president draghi saying a more dovish turn . does that confirm the recent drop we have seen in treasury yields?

yield isk treasury mainly about traders pricing in a fairly serious slowdown in the u.s. economy. my view is they probably price too much of it. i can believe in growth moderation in the u.s. but not the floor dropping out. ,hat has happened with the ecb and we said this before, they are having difficulty generating inflation. a few years ago, president morei, by adopting a reflationary type of monetary policy, really helped europe quite a bit. in some ways, after 20 years of the euro, a really am beginning to feel like the ecb is very much constrained by its own only inflationis targeting. at times like this, it feels like if you had a mandate more like the fed, where you're

talking about both employment and inflation, that might give central banks a bit more wiggle ways to adjustf the policies. with us, lots more to talk about. we will tackled the issue of trade. in the meantime, breaking news crossing the bloomberg. lvmh is close to an agreement to share in cash for belmont, an owner and operator of high-end hotels around the world. this is according to people familiar with the matter, a $25 a share in cash for belmont would value the company's equity at around $2.6 billion. that would represent more than a seven dollar premium. the enterprise value according to this report set at $3.2

billion. we are watching that story as details become more solidified. r.b.i.,ke a look at the holding its third meeting under a new governor. up next, the end of the ecb for your bond buying program as reo draghi sees threats ahead. this is bloomberg. ♪

haidi: this is "daybreak: asia." i'm shery ahn in new york. u.s. commerce secretary wilbur ross is cautioning not to get too optimistic about china's early gestures on trade. he says more needs to be done to resolve the impasse. stephen engle is following the developments. only secretary ross talking down the progress with china, but also president trump not really satisfied.

i been trying to figure out if every day's new cycle is two steps forward one step back, or one step forward and two steps back. one day they are applauding the chinese and the next day you get comments scaling back expectations. wilbur ross says these early gestures by the chinese that include restarting purchase of soybeans, possibly restarting purchase of liquefied national -- natural gas as well as perhaps scaling back made in china 2025 technology initiatives, these steps are welcome, but he cautions they are very limitary. they want more enforceable measures from the chinese and pledges with timetables and 142lines, on many of the u.s. demands. so it is welcome but still very preliminary. says the chinese plans we

have been hearing about to cut back auto tariffs on u.s. made cars from 40 down to 15, so a cut of 25% does not go far enough. he said is not acceptable, 15% is still too high, so donald trump is not satisfied and also not satisfied with general motors plans to cut 14,000 jobs so seven factory closures close to the holidays. he said gm is not going to be treated well. i want to update on the huawei situation as well. that has a risk of torpedoing any goodwill between china and the united states. the canadian foreign minister will meet in washington dc with mike pompeo as well as defense secretary jim mattis to discuss

priority issues. i cannot imagine what might be a more priority issue than this huawei case. haidi: stephen engle with the latest. we've got to talk about trade, of course. and someume the u.s. of its allies will continue to push back against the strategic ambitions of beijing, is it possible for them to do that without derailing global trade and therefore global growth? they will have to do it very gingerly. i was a bit encouraged in the last couple of days. what i felt before the last couple of days is that the chinese were offering the same old, same old. five more -- by more american stuff, make some grand promises and big plans and nothing much more than that. i don't think that is going to fly this time with the united

states. they cracked the door a little bit, maybe adjusting the made in china 2025 now they haveught some stuff they can actually bargain with. shery: we have seen because of these were positive news on trade that the offshore yuan really strengthened, the technical point being to more strength coming up, this chart on the bloomberg showing the 21 day moving average crossing below the 50 day moving average on tuesday. but given everything we have heard from policymakers in china including the pboc about supporting the economy, is this feasible? cliff: i think it is feasible, as long as the currency basket a 92-94ays within

range, which is not a lot of movement. the extent of the movement so far is feasible. whether it can move much beyond 6.7 is really open to question. shery: so what happens after march 1? what should investors be bracing for? optimistic side, if they do start making serious progress on verifiable commitments, one thing that might happen is we will get another 90 day extension while they see if they can work out the deal. otherwise we know what the alternative is, which is the 10% tariffs on the 200 billion go up to 25% with a further escalation to the remainder of the u.s.-china trade in imports subject to tariffs. shery: thank you so much for your time today.

leaning more coming up on "daybreak: asia." this is bloomberg. ♪

haidi: this is "daybreak: asia." shery: i'm shery ahn in new york. china has been the last three years creating a special town outside beijing to your companies and workers to the private funds market. despite recent declines, the town's managers are pushing ahead with a plan to create they hope will be a global hub for money management. our china correspondent reports. >> this wetland on the outskirts of beijing is set for a glittering future. think sleek offices, designer shops, and plush apartments for the modern-day financier. at least that is the vision. beijing's fun town is built as a center for china's growing ranks of money managers.

the plan, and it is an ambitious one, is to build a fun industry hub around this wetland park about an hour outside of the capital. the question is, can they convinced industry players to set up shop here? backers say more than 1000 firms have already registered with around $230 billion of assets under management. >> it should play a role in being a bridge to provide better service to those global names. war, and thee stock selloff have fueled headwinds for china's $1.7 trillion fund industry. however he says it is not dampen enthusiasm for the project. >> from my point of view, i don't feel any impact on us. we are still expecting more to come. many -- money manager points to fundraising and

navigating regulations. also bullish about chinese market in the long-term, despite trade tensions. >> now the good time for investments. the rational investor should into the market when it is bearish. a bolde and that is call, given the simmering issues facing china. almost as bold as attempting to turn a stretch of lily ponds and feels into a world-class financial center. tom mackenzie, bloomberg, beijing. there.huge ambitions let's a good how asian markets are tracking in this friday session, pretty muted so far. we've seen about 40 minutes trading when it comes to japan and korean stocks as well. .4%re seeing declines of

when it comes to the nikkei 225. impressed with the shifting strategy there. off just .5%.are this is bloomberg. ♪

haidi: we are getting the latest lines on the apple qualcomm battle. qualcomm saying it had won a ruling in a chinese court giving a pulmonary ban on iphone sales of some models in china. it was seen as one step towards a potential settlement between apple and qualcomm. apple make a statement it made a request to overturn the ban in china. the chineseng court to reject the ban. crucially apple says the iphone ban would force qualcomm to reach a settlement with apple. the intellectual property

covering wireless design. the chip maker is using other patents that cover some aspects of the way that phones work to attack back at apple. the sides are continuing. not just talking about china but in another m arket in the u.s. and germany. qualcomm specifically engaged in these patent disputes. we will get more details as they become available. let's get you to first word news. boj's quarterly survey found covenants among manufacturers held that but they have a dimmer view of the future. the reading remained at 19 but the outlook fell to 15, below forecast. it adds to users about the health of exports and investments that have driven growth in the economy. still, sentiment remains higher than it was for almost all of the past decade. theresa may has appealed to e.u.

leaders to help her fix the brexit deal. yetsaid the deal could collapse but added that reassurances from brussels would change with an at from parliament. they are discussing a new legal declaration on the irish -- to trap fears that it would ireland inside the u.k. >> our u.k. friends need to say what they want instead of asking us if they want what we want. so we would like, within a few toks, our u.k. friends set other expectations for us. >> the european central bank is ending its stimulus program while warning that -- net purchases of bond. this month after four years o f easing.

the governing council says that rates will remain at record low's through the middle of next year. the senate has voted to withdraw a u.s. support for saudi arabia's war in yemen as punishment for the murder of dissident journalist khashoggi. the resolution is seen as a public rebuke of the crown pirince and of president trump trying to minimize the prince responsibility. 14 million people art risk of starvation in yemen. global news 24 hours a day on air, on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. haidi: thank you. let's get the latest on the markets in the friday session. in hong kong. >> given the tug-of-war between good and bad news when it comes to trade, that recent rally in asian stocks taking a breather with the stocks underwater.

the nikkei 225 off by half a percent. tech leading the decline, a sub index up chip makers losing 2%. -- losing 3%. we are seeing that risk off sentiment, despite the japan survey coming in better than expected. we are seeing confidence hold their but the trade war is souring outlook. there is some hope that we might see some change in sentiment as u.s. futures are nudging slightly higher. when it comes to stocks, keeping an eye on this morning, japan it is in company says talks for a possible alliance with chinese companies which could see the panel maker received a $440 million investment for a state of a third of the company. in sydney we are seeing media stocks taking a hit. sliding 10%inment this morning. not clear yet as to why. tbg under pressure as doubt is cast on the likelihood of a

vodafone merger. samsung electronics off by two. this as analysts are cutting their price targets, setting fourth quarter prices will miss consensus. the chip prices has weighed on samsung prices this year. the spat between apple and qualcomm is also weighing in asi a as well. haidi: with the latest on the markets. virgin galactic has marched amount -- marked a milestone. its unity spacecraft took off from the mojave desert climbing 82 kilometers above the are and breaching the atmosphere for the first time. we spoke to richard branson and asked him how many tickets they have sold so far. >> we've stop selling for the minute but we will start again soon. 700 people signed up,

which will keep us going for a couple of years. but we will open up, we will invite other people. first, basically, it is not, it doesn't start off being cheap. it's something like $250,000 in the beginning. the prices will go up a bit further for the next two or three years. a number once we have of spaceships, we will start to bring the price down and down and down. with the aim of being able to get a lot of people in this program around the world, to have a chance to go to space one day. and their children as well. >> can you tell us, that price point at $250,000, is that a profitable price point? towards the path commercialization look like from here? >> we are now very confident that virgin galactic and our

sister company can be highly profitable. so, virgin orbit is something rocket a product, giant we are launching beneath one of our 747's to put satellites into space. march. and the demand for small -- crafts in space is enormous. and then we of also got virgin galactic which is the principal purpose to put people in see space. we took a big nasa load of scientific equipment into space today. and they paid us reasonably well for the. be putting people into space and we will be putting satellites into space. we want to get your views on brexit but before we had to that

topic, i want to get your thoughts on this kind of billionaire space race between you and jeff bezos and elon musk. competition?e the do you see it as a razor do you think they should be a bit more collaboration or consolidation within the sector? >> the funny thing about races is people always say, we're not really in a race until they actually win. today, we were the first put people into space. ae're going to drink couple of glasses of champagne to that tonight. ourruth, we've got to, printable focus is safety -- our printable focus is safety and affordability for people to go to space. jeff bezos, myself and elon, we've all got very different approaches to it. i think each approach has the uniqueness and people will want

to, different people want to associate with different approaches. veryt's just a very, very, exciting time, i think, for investors investing in commercial spaceship companies. to do so. and the market, we believe, is enormous. something like 80% of people we researched, if they can afford it, and if they get offered a return ticket would love to go to space. eaded businesses from space to air travel and if a structure, how is this new way for protectionism and trade barriers impact you? >> i think it's dreadful. it is just so sad when you see, you know, people talking about, let's just look after our country. i remember kennedy talking about the importance of looking after each other. trading with each other. has worked forat

many decades. so, inward thinking countries will, they will not thrive as a result. we need countries like america and britain and the sort of slightly more civilized country that do not lock up their people are killed or people to work together to put forward democracy on a global scale. tradeeah, very sad to see barriers being put up. bransonhat is richard speaking to shery and me. china has been ramping up approvals for u.s. movies to be screened in the country cinemas this year and will permit 41 movies up from the previous 34. we're joined by the bureau chief chris palmeri. it's interesting. as we try and seek conciliation in this trade war, china is

increasing the number of foreign films on its screens. it would seem maybe something to do with the negotiations or some generosity onthe chinese park. -- part. it has nothing to do with that. they have internal targets, revenue, they have been building a ton of movie theaters. a certainto get to number for the year and it does not look like it is happening with chinese films alone. that is what is here. an early christmas present for hollywood not necessarily indicative of any larger trend. haidi: is it a massive opportunity for the films that do get shown? chris: it looks like grinch will in a sony film in asian american cast. and so, these movies will get a chance to make a lot more money overseas for sure. shery: how hav ee u.s. films ben

doing in china. they are expected to overtake the u.s. as the biggest market soon. not so much.wns revenue for us is down 20% because the chinese movies are doing so well. they are resonating well with audiences there. they often get the best release dates, the best weekends, the longest play. and so, it's tough for the foreign films to succeed. haidi: chris palmeri, thank you so much. our l.a. for your cheap. shery: indian inflation slow sharply as the new central bank governor hold his first board meeting. we will speak to numerous chief andy economist about whether the rbi will turn dovish. this is bloomberg. ♪

haidi: this is "daybreak: asia"

guest says the rbi is likely to have a rate cut by 25 basis points in the third quarter next year. the new rbi governor takes a more dovish policy stance. joining us from singapore is the nomura chief india economist. before we get to the policy machinations as to whether patel's exit means the next governor is definitely going to be a more dovish one, i'm wondering if i can get your views on what this change of the top means for central bank independence in india. as far as think -- the central bank independence is concerned, that is something we will see over time can we have a number of finance minister bearcats -- bureaucrats and independence was initially questioned. rbi as an institution has managed to retain independence for a time.

one should not prejudge. but specifically on this new governor, i think there are two aspects. one is the monetary policy as theand the -- as far monetary policy aspect is concerned, the decisions for now are made on the monetary policy committee. the new governor we do think has oneutral dovish idea monetary policy. the decision is driven by fundamental and that points to a more accommodative -- as far as revelatory policies are concerned, the governor plays an important role. on those issues, related to liquidity, we think the new governor will be more accommodative. haidi: they've managed to maintain independence, but they two central bank governors for this reason. you expect the pressure from the government to continue? >> well, i think on the banking side, you know, to be

fair, both the reserve bank and the -- have equally important points to make. the economy has been hit by i would say a credit shock. the banking system has been under pressure for many years now. and the non-banking center that was feeling -- filling in the void left by the banking sector has been hit with a shock. you have a credit driven economy with the same tightening in financial and credit conditions. so, the job of authority says to be to ensure that policies are more accommodative for people. apart from regulatory policies, the system is a whole requires more liquidity, then more liquidity needs to be provided. i don't think it's fair to say one is right, one is wrong. both have an equally important point to make. we need to address the near-term

concerns and ensure that there is no credit risk in the economy because of lack of liquidity. but, at the same time, without diluting the medium-term financial stability. raisenot want to medium-term financial stability. shery: those fundamentals that could support a dovish tilt, the chart on the bloomberg showing inflation easing, boosting the case for easier rate policy. so, what is the outlook for inflation and price pressures going forward into the new year, especially when you have oil prices fluctuating? >> you're right. the outlook does look quite benign as the new governor acknowledged. oil prices have come off. food prices are going to stay quite low, because a lot of the cyclical forces to suggest that. and i think the one concern we have seen in 2018 has been very high inflation but given the

demand side of the economy, which we think is going to moderate to 6.5% in the next 6-9 months, even the demand side inflation a pressure should come off. we think inflation is going to stay around 4%. banks are medium-term targets. the real rates in india are quite high. before that,t -- change in the stands back to neutral is what we are expecting. haidi: the state election results were not as great as prime minister modi had expected. shery: what impact that will have -- will that have an economic policy next year? >> there isn't much time left honestly and the government doesn't have enough money. they will struggle on the fiscal front. f=the question is whether something needs to be done on the real economy to sort of a switch - -assuage.

but essentially means a quick fix. there are talks of waivers. the government does not have the money but an announcement on that front could be there, but i think that would, then the macro risk. i think more than that the state election -- has really infused the opposition and a grand coalition led by the congress and a lot of district regional parties is something that we will see. so, we do think that political and 70 -- uncertainty will rise and that also means weaker investment and that is also one of the reasons why we think it growth is going to slow down. shery: thank you so much. plenty more coming up on "daybreak: asia," including the ongoing licensing battle between apple and qualcomm. this is bloomberg. ♪

haidi: this is "daybreak: asia." shery: let's get more details on those breaking lines. earlier we heard that apple and qualcomm's battle was ongoing. apple is saying that a ban on the sale of some models of the iphone will force it to settle with qualcomm. mark joining us from l.a. despite the fact they are

thinking of settling, they are asking to reconsider. >> next? -- what's next? mark: publicly apple has not indicated it plans to settle. qualcomm made stamens to the opposite is saying you might to settle are pushing toward the summit. towards a settlement. this is an application for reconsider called the -- apple the chinaandarin to courts indicating that is a possibility if the injunction is not overturned by the government. apple's warning of the severe ramifications in terms of the down sterling of the mobile business if the settlement was to occur? mark: they are basically saying that they would be in for millions of dollars per day i f such an injunction was not overturned. it is really unclear how true that is, given that this only covers two models that are still on sale, four model total, the 7, 7 pulus.

some of the new phones, the iphone x is no longer on sale. so it's really unclear how bad the impact is but we know that apple is putting out some legitimate reasons for the injunction to be overturned, including how this would impact the chinese government because of all of the tax they would not be collecting on these units not being sold. shery: we had heard also qualcomm asking a u.s. trade agency to reconsider some decisions before on apple as well. so, qualcomm really trying to fight this battle on all different front-end regions. mark: yeah, qualcomm is going full tilt on this. they want this ban done. they want to collect the payments they think they are owed. apple has not made payments for these motives in several months. it's to be seen what happens but qualcomm is putting up a big fight on this. haidi: mark, as shery, mentioned it is not in the china or the u.s. also germany as well.

qualcomm is fighting these battles. mark: absolutely, this is a global situation. there is news on a daily now of china, germany and other european countries on united states. we had a story about attempts in the united states to bar some of the latest iphones because of a dispute over modems. apple butwould also foxconn and the chinese government. technologyrg reporter for us in l.a. let's take a look because it does look like we will be setting up for some pain in the session for apple supplies. are we seeing any kind of reaction so far? >> we've seen reaction when it comes to stocks in japan and korea. when it comes to two on worries -- to taiwan, we see foxconn we are anticipating pain ahead. it is unclear as to the actual

impacts given that it's isolated you two models but apple has warned it would hurt manufacturers like foxconn saying it would result in un recoverable losses in a downstream market of mobile phones. now, when it comes to other themes i am watching, when chinese markets open, keep an eye on chinese property developers as the outlook is looking less daunting. according to investors polled by bloomberg, they have increase the position in top builder since october are considering buying on more shares. potentially ahead after this year's slide. of 22 chinese developers listed in hong kong has lost 31%. since the peek in january. so, investors will be waiting to easing. measures will be announced at next week's meeting ahead of that, we do have activity. his morning.e t

we are waiting on retail sales and fixed accent investment -- a sset investment. haidi: watching for that data dump out of china. let's take a look at our markets so far are doing in this asian session this friday. we're seeing lukewarm pictures . extending those losses down by 1.3%. the cost be close to session lows for trading in south korean. in australia we are seeing declines across most sectors, as we have that session overnight from wall street. shery: we are seeing a little bit of pressure on taiwan futures in malaysia as well. of course, trade tensions still weighing on the markets. this is bloomberg. ♪

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"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. >> 9:00 a.m. in hong kong and china. >> pboc governor says china is under pressure as the economy shifts from high-speed expansion to high-quality growth. trade, butmoves on concrete action is more important than mere gestures. rishaad: theresa may appealing for european union help. brussels says it is time for the u.k. to say exactly what it want. ♪