paul: good morning. we are an hour away from the market away -- opening in australia, japan, and south korea. shery: i am shery ahn. ivanka: i am yvonne man in hong kong. -- yvonne: i am yvonne man in hong kong. paul: a triple brexit lame. boris johnson loses a third comments vote in 24 hours and

fails in his bid to trigger a snap election. china signals more support for the slowing economy indicating a cut in the bank reserve ratio is on the way. >> protesters vowed to return to the streets of hong kong and continue their calls for change. they say carrie lam section is too little too late. shery: it was all about k anditics, both in the u hong kong. we saw a risk on sentiment across the board with the dow caning -- gaining almost 240 points. the nasdaq up 1%. tech shares leading the gains. they were the biggest losers in the last session. we have the energy sector in -- section gaining ground. we had the dollar falling the most since june. it was all risk on and the geopolitical tensions subsided. not a lot happening with u.s.

futures. let's get you across some breaking news on the terminal. we have july's current account of numbers from south korea coming in at a surplus of 6.95 billion dollars. the current account for south korea in july. this as expectations grow for further easing from the bank of korea. let's see how things are shaping up. they were pointing higher as we had the wall street gains. what are you seeing? sophie: pictures are set to track the gains we saw on wall street. about .201 percent. futures posting higher although we may see some weakness given the earnings we have seen so far this morning from australia. profit slump and 56% indicating tough times we have seen from corporate australia and when it comes to the

eco-data outline up from australia we will be getting july trade balance which comes after gdp came in which was at the slowest pace. we will be getting cpi numbers from the philippines for august which could show a continued slowdown in cpi which would allow for space for easing from the [inaudible] taking a look at the risk sentiment parameter us as we head into the trading day this thursday. hong kong futures are edging lower. after the surge we saw for hong kong stocks we saw on thursday. this is we saw u.k. prime minister boris johnson be delivered a defeat like him to plans for [inaudible] as well as on the brexit bill. paul: let's check in on the third -- first word news.

jessica: for testers are going to continue their fight for universal system -- suffrage dismissing carrie lam's withdrawal of her extradition -- extradition bill as too little too late. demonstrators faced off against police repeating calls for all sides of their demands to be set -- met. into policeinquiry action and for carrie lam to step down. >> after more than two layout -- months of social unrest it is obvious to many that this extends far beyond the bill. it covers political, economic, and social issues. jessica: the u.s. is said to have tried to bribe the captain of a suspect oil tanker offering him cash. received several emails at the state department offering

several million dollars to change sides. the ships indian captain does not seem to have replied and has not made any comments. hurricane dorian is edging closer to the eastern seaboard torrential rain and sustained winds of 170 kilometers an hour. the system is expected to weaken cost north it should carolina's outer banks as a category one hurricane later thursday. dorian has killed seven people in the bahamas and left much of the country underwater. the financial impact is forecast at $25 billion. 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 am jessica summers. this is bloomberg. if you premised are boris johnson has lost yet another vote in parliament failing in his attempt to trigger a snap election. his latest setback comes after mps moved to avoid a no deal

brexit. we have the latest from london and bringing in our reporter. defeat. what are the implications for the prime minister? got back to work, parliament reconvened and we have seen the defeat. boris johnson trying his best to push her an election. he failed once today for the labour party, the main opposition are putting their foot down and saying we want to get brexit sorted first or at least stave off a no deal. here is what jeremy corbyn had to say. that is what he is offering, not an apple or an election but the poison of no deal. party that desperately wants an election.

they have to stave off no deal first and it could be the priority. they have been pushing for an election for a long time. better than expected and the key to capitalize on that momentum and to push toward downing street. it seems like they want to move that date and make sure that we don't crash out of that eu on october 31. before going ahead and putting this back to the people. paul: an election would carry significant risks for both sides, for boris johnson losing power. the labour party stance is a tad ambiguous. >> they have been unclear. they have run the issue that there were many remain supporting mps. in the north of england where the labor party has a stronghold. we saw [inaudible] and they are in a position.

not having been very clear on their position. what we see now is a fragmentation with lots of moves through the brexit party, liberal democrats, those who have clear stances where voters suggestingto go that. we could see the parties losing seats. to give us some sort of concrete answer of what the country wants but it seemed like we are as divided as ever. paul: thanks for a much for that. let's bring in our guest. us.ks for joining sebastian outlining possibilities and the various permutations if we do end up having what would be the third

election in four years in britain. there is no guarantee that that would make a picture any clearer. pretty, this is still chaotic. we have a new prime minister who looks like this may be a -- the shortest reigning premised are ever. no prime minister has ever lost their first three votes. i am more optimistic than sebastian in one sense. what has happened is not the story about the layer -- labour party. what happened is johnson trying to go for the no deal brexit has pushed the remainders, the people against no deal brexit together. there is some coalition amongst the opposition and what we have seen as 21 tories left the tory party including to ask chancellors, the ground -- grandson of winston churchill, and they are opposed to this note deal brexit so you have a coalition of the labour party, some of the tories and lib dems

and scottish nationalists, and that will wipe out the tories in scotland. you are right. it does not look like such a big deal but what we see is a coalition against no deal which they have tried to push but i don't think that will happen and the only question now is how soft a brexit deal there will be or whether we will end up seeing now brexit at. there is some clarification. we could have an election, we could have a second referendum. all kinds of things are on the table. this looks really bad for boris who looks like his days are numbered. is a big difference between losing votes in parliament and losing a general election. boris johnson has been dealt an extremely we can't. would be a populist

campaigner and the thing to remember about the remain vote, the voters are concentrated in a small number of electrics, are they? >> they are. thes not feared where election will go. the likelihood is there will be a hung parliament but the reality is there is not a majority in the house of commons of no deal brexit. the probably is a majority for some kind of deal being struck. the vote that was there today would push back the date where britain would leave the eu from -- october 31 and gave johnson some prospect of possibility of trying to renegotiate. barney and the other falcon the no attempt has been made, no offers or negotiations are taking place. down the road we will see the opposition saying johnson lied to the country, you cannot trust

him, and there will be a lot of voices from the tory party saying the same thing. this is people at each other's throats and what it means is that no deal brexit possibility that moved a bit and the markets liked it. the pound is down below $1.20. 22.50.ack up at necessarily pro-remain but it is anti-no deal. that is why the pound has moved in the last 24 hours or so. 21 to 2250rom below as i looked a few minutes ago. amble.it is such a big boris johnson could come back with a bigger mandate depending on how that election goes. how will the europeans feel about an election and can we get johnson to try again to get that election to happen? >> they are obviously trying.

and heliament will stop, still has actions going on in the house of lords that have to approve this and the tory peers are trying desperately to prevent this from happening. they put down 90 amendments. they are trying to filibuster and the issue is could they do that. all sorts of things are possible. the thing that has gone through to prevent that no deal brexit could just die on monday. we are back where we started. could they call an election. the big deal for the labour party is does he call an election before the possibility of a no brexit -- no deal brexit disaster. they would like it to be after the day after the day when fairies stop and so the argument is not so much about do you want an election, the labour party do not want an election on october

15. they take november 15 because that prevents no deal brexit so the argument is where we can have it then are you going to have it. within labor.pute what do they want to do? do they want to call an election or call a no confidence vote and if you have one when would it be? the crucial thing everyone is fighting around is no deal brexit and the backstop. that is the big story that the europeans don't want that to happen. johnson is going to ireland next week and he is going to hear strongly that the irish don't want a no deal brexit. shery: you the bloomberg brexit parameter has launched to a low. this is compiling indicators such as unemployment, inflation growth, and uncertainty. as you mentioned the reaction in the markets, the pound higher and so forth. meandoes that brexit delay

for the economy? is it still ok with the economy to just get along while they can and being kicked down the road? danny: gray questions. mark carney today tempered a little the view of the bank of england on how serious a prospect no deal would be. it has been pushed back a bit and there has been more preparation. we arelity is that seeing recession creep up on the u.k. economy. we have seen in the last three days pmi's from manufacturing and construction were negative. we have weaker services data and weaker data on retail trade and a negative in the most recent quarter and the on apartment numbers ticked up and the anaplan meant rate picked up. the possibility is that already the u.k. is going into recession and the warnings are even theout the no deal brexit economy is slower and the government announced a full austerity onive

plans to put more stimulus in the economy if they can get it through the house of commons which they cannot do at the moment. you are right. negotiationhaotic does i think push the economy away from no deal brexit. the markets. like, businesses don't like, businesses do not like and that is why investment has slowed. this is about clarification that i think the no deal brexit would have been a disaster. we moved a little away from that. shery: a little away but plenty more to discuss as this continues. we will have you back. danny: we will be back next week to shery: thank you so much for that. an explanation of brexit. the latest from hong kong. why the government's latest is seen as too little too late. we will speak to a pro-democracy leader this hour. paul: china is signaling a

triple our best triple are is next. is next.le r this is bloomberg. ♪

paul: the council of china is signaling that a reduction in the funds banks must hold is on the way. the move aimed at releasing cash into the slower economy. selina wang has the story. what do the council say? selena: the state council was asking for the targeted and brought news of ratio cuts in a timely manner. this is after a meeting held by the premier and it is expected that pboc is following. this is what happened before the reserve ratio cut. there was a similar meeting held and called for the issuance of a by localond to be used governments to boost infrastructure spending.

many economists are expecting this cut to come as early as this month. this does not come to gas as a surprise given the pressure. we had many economists lower expectations. there's a lot of headwinds facing the chinese economy and we heard from the state council themselves of the external pressure is placing enough downward pressure on the economy that the reserve ratio cut is necessary. for localcial bonds governments, triple r cuts. a revamp of the interest rate reforms to improve monetary liquidity and measures to boost consumption. many economists say this stimulus measures has been insufficient to boost the economy. many economists are expecting there could be a cut in the benchmark rate as the -- as well as the lending facility to improve the interest rate revamp

to increase the lending to small private firms. we saw that the economy is weighing on weaker companies on the smaller private companies. that despitenote all of these pressures china's government is holding on for the long-term and taking a long-term view. this is unlikely to be assigned that the stimulus floodgates are opening. they are trying to stimulate the economy enough to prevent a crash but they don't want to increase financial risks in the economy in the form of debt. you very much. the prospect of stimulus from china lower interest rate from global central banks have implications for emerging markets. joining us in new york. great to have you with us. well all of these measures be

enough for beijing to avoid the hard landing? 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. we think so. beenovernment has cautious. their intention is not to leverage the economy again and repeat mistakes they made in the past global financial crisis causing bubbles. i do believe and i agree that the objective is to stabilize the economy but not to create levels and they have enough measures that they can take in the future to do that. shery: we have seen local governments saddled with debt and now they are asking for a more special bond. the chart showing debt to gdp ratio everywhere from the household to the corporate to the government sector. should we be worried about the debt load at this point? is happening is the reallocation of debt. you could have the special vehicles issued but they may be reducing get from other measures and other avenues.

the households are still not very levered and there is definitely a sector of the corporate center not levered. what you will probably see is the overall leverage of the economy remaining stable but it shift in the leverage of different sectors. paul: inflation is low at the moment in the central bank. there is plenty of room to continue easing. do you expect to see ongoing easing? the bank of korea is a prime candidate. >> we were expecting to see ongoing easing. we expect to see more and that is something that is supporting the growth slowed down that we are seeing globally. are looking for yield, it can be somewhat hard to find. --k bond yield from e.m. is we have a record now, you can see that if you're looking for

some yields, this is the place to go but it does carry a risk. would you be getting involved? >> absolutely. we think that a lot of value has emerged and high-yield emerging-market hard currency debt. the gap between high-yield and m ig is higher. selection is key of your. you have a contrary and call in your notes. i was just doing a segment earlier this afternoon. about how they have those eventual bonds and debt of $15 billion. why do you like argentina? >> we think investors are overly themistic before about economic adjustment, about his electoral prospects. too much has been priced into the bond market and the hard

currency. there are -- they are trading at extremely low dollar prices and pricing in and aggressively structuring. we don't think that if he gets elected president will be able to say much about his economic policies because it is still a candidate. however after elections we think that he is likely to be more moderate than the market is [inaudible] with cristina kirchner around. >> we think there is a reason she is not on top of that ticket. risk you stillof see global recession is the greatest risk to what kind of probability would you put on saying that? >> there is a reasonable considering the global slowdown. the u.s. is pretty late cycle. the probability appears to be

racing with all the uncertainty we have seen with the trade war. i think this has moved from being a tail risk to a fairly high risk. have reduced some of your outperformance in ukraine. >> it really is not restricted to the mainstream emerging markets. it can find attractive opportunities in africa, central america, caribbean, more frontier countries that people are not looking at as closely. paul: thank you. thank you for joining us. let's get a quick check of the latest with business flash headlines. apple is ready to borrow $7 million in its first bond sale in two years as chief -- cheap borrowing costs leave most companies flush with cash. in -- advantage of yields near all-time lows. apple has more than $200 billion in cash and securities and selling senior unsecured bonds

in five parts. shery: no longer willing to accept planes that do not need specific nations. they have lost patience with glitches and poor quality that have delayed new models or forced costly appear -- repairs. they have outstanding orders for 250 planes. they will not take them without a cast-iron guarantee of trouble-free performance. paul: china airlines has sixlized an order for planes. the carrier already operates more than 50 -- 50 boeing planes and trend -- plans to transition operations from taipei to north america and europe. where speaking to -- we are spillng about carrie lam of the extradition bill and why

protesters are far from satisfied. this is bloomberg. ♪

jessica: u.k. prime minister boris johnson had lost another vote in parliament failing in his attempt to trigger a snap election. he needed two thirds of the comments to support his plan but less than half backed him. johnson tried to argue that an early election is the only selection to the gridlock that has to are lysed britain for the last three years. it is the third vote johnson lost in the last way for hours. -- twice for hours. china signals that an amount in hold in reserve is on the way. releasing money into the slowing

economy. to state council is calling support growth including broad and targeted reserve ratio cuts. that pboc usually follows through with such requests from the council. rlicy makers cut the triple after a similar announcement in january. pain of as easing the rough first pass. total deliveries may have risen 7% in august thanks to cheaper financing. although suv sales demand for sedans slowed. and at 93 months streak of sales gains rising a must 10% in august. singapore is to review electoral boundaries in a single general election may be on the way. there is no timeline but the process has taken up to four months in the past and normally a vote follows once the recommendations were made.

the next election must be held by april 2021. it is seen for that last for the prime minister as he is down to hand over power by the time he turned 70 in 2022. the philippine president is ready to defy china. he said his country benefits from online secured -- casinos and will support the industry despite asia's call for a ban. investors dumped property stocks on concern that duterte would clamp down on the offshore gaming industry a. 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 am jessica summers. this is bloomberg. we are half an hour away from the open in tokyo, sydney, and soul. let's get over to sophie in hong kong. what are you watching?

i want to get fancy with a 3-d visual asian of what is being priced in for the british pound in the options market. plenty ofickup with uncertainty looming which is keeping the currency looking vulnerable. also investors buying volatility to ensure against price swings in the pound into the end of january 2020 which could become the next brexit deadline. seeing cable hanging on for the best day since march about that 122 handle recovering. [inaudible]ing we and with a quick check on the kiwi dollar. a supplies -- a price drop in activity. the has prompted a bank to cut its gdp forecast. kong: protesters in hong

vowing to continue their fight for universal suffrage. dismissing carrie lam's formal withdrawal of her ex tradition -- extradition bill as too little too late. more would need to be done to restore calm. >> after more than two months of social unrest it is obvious to many that this contentment extends far beyond the bill. it covers political, economic, and social issues. yvonne man is in hong kong. how big a victory is this for protesters? yvonne: it is carry lines -- carrie lam's biggest concession. this goes beyond this bill right now. the discontent that there is in the city still at the moment. protesters are guess even before

this address after reports learning is might scrap this came out and said this is not enough. they want all five of their demands met. not one less. where they say that carrie lam did not go far enough issue did not grant amnesty for those who are arrested and charged with crimes in the last 13 weeks. she says because essentially they did break the law and she did not go far enough to set up an independent committee to investigate. -- investigate the police handling of these protests. she did but protesters say this group itself is dominated by pro-government members so it may not be able to do much and most significant is that she rolled out universal suffrage with this proposal, beijing ruled out already this week. carrie lam reiterating saying this does take more discussion without polarizing society and

ultimately, it is beijing who decides on this issue. as you mentioned, too little too late. one protester put it this way saying that this move i carrie lam was a band-aid to rotting flesh. graphicat is quite a description. if we focus on their withdrawal of the extradition bill, not enough to satisfy protesters but enough to end the violence. could appease some moderates out there who were calling for the full withdrawal of this bill. for the front miners they are lateg it is too little too . not enough at the moment. these are groups now that are wanting a lot more after 13 weekends of political unrest and are willing to fight for it. we have seen that with a graphic images over the last couple of weeks and for carrie lam, she says we want to have more direct dialogue. coinciding with what beijing --

with beijing softening their her the priority right now is to restore order in the city. take a listen. >> our foremost priority now is to end violence, to safeguard the rule of law, and to restore order and safety in society. hasuch, the government strictly enforced a law against all violent and illegal acts. will see how markets react. after the report came out the hang seng shot up close to 1000 points, the biggest gain we have seen intendment -- in 10 months. the chamber of commerce here saying this was a welcome move by carrie lam and could help calm down the tensions. as we know so far, a lot of these protesters still going on, the ones that have been planned

at the airport this weekend and it has been about the student groups have been boycotting class and staging demonstrations on campuses. yvonne man in hong kong. thanks for joining us. on the line now with is alvin young, a legislative council member and leader of the pacific party. you are one of those who say this concession on the withdrawal of the extradition bill is too little, too late but can you see it as a positive step, a conciliatory step from carrie lam? alvin: thank you for having me. my concern is the so-called concession is a preparation for a bigger step from carrie lam. over the last week, we have been hearing some cash from the government and rumors saying that carrie lam is preparing to invoke the emergency regulation ordinance which would allow her to have unlimited and unchecked powers to make regulations,

including to limit and restrict a different sort of freedom including freedom of assembly and to even crackdown any [inaudible] dangerous and having the so-called concession withdrawing the bill, she is trying to remove her biggest obstacle. so that people on the street, those who are demanding for democracy, carrie lam would say look, i have been doing my part. you are here. that is very unreasonable so this is my fear. have had 13 weeks of protests so far. you are expecting a 14th week. alvin: we do not know what would happen. it is quite certain that people will on the streets demand for democracy, it will still be there -- there. we will not give up on the

demands. there are still four demands to be met to have the investigation commission against police bertelli. over the past three months, people have been suffering from this police brutality and we have to, we are demanding the government look into that. shery: how concerned are you about the hong kong economy? alvin: of course. we have received signs and signals that hong kong economy is having some challenges. abouts entirely confidence and this government is sincere about the economy than there should be something for this government to do and by simply restoring the bill is far from enough. shery: one of your demands and the most difficult one is the election of your on leaders. we have heard from beijing that that is not negotiable. we have heard from the hong kong [inaudible] beijing would never

allow hong kong's apposition to pick a leader that was not accountable to the central government. how do you break this impasse? alvin: this is an over exaggerating the matter. all of the people all are demanding for is within the boundary of one country, to systems and this is a promise made by beijing. we are not asking for the moon. we simply are demanding something that is legitimate and reasonable. we all remember weeks ago beijing was saying that there is no way they could compromise. but look, carrie lam with through the bill yesterday. it is -- everything can be possible. seeing a list of the four remaining demands and one of them is universal suffrage, a key one. is that realistic considering one country, two systems is due to expire in 2014 -- 2047 anyway? alvin: we are 20 odd years ahead

of that and i trust if beijing is sincere about the promise they make to hong kong people might if beijing does care about how the international community forget therenot are promises made under the declaration which is an international treaty. if beijing is sincere to prove to the rest of the world that they are a player that can be trusted and law-abiding, then of course they have to keep their promises. paul: i you concerned that the longer these protests go, the -- you areis inviting a potentially heavy-handed response from beijing? alvin: my concern is beijing is an together with hong kong leadership is sincere and they do genuinely a care -- care about hong kong people, especially the younger generations and they have to do

something. they have to listen to the people. they have to set aside demands and by satisfying demands it is laying a foundation. are you concerned about losing public support? >> i don't think so. people in hong kong are fully tricks played by carrie lam by making one sort of so-called concession to lay down foundation for the emergency regulations. this is our biggest fear and we understand what happened if carrie lam invokes the emergency ordinance. shery: thank you for joining us with your perspective on the hong kong protests. leader of the pro-democracy civic party. bloomberg will we speaking -- will be speaking to another alleged coleader. next we will be live at

bloomberg sooner than you think and vent in singapore. how ai is changing the business landscape. this is bloomberg. ♪

paul: this is daybreak asia. shery: bloomberg's second sooner than you think in asia starts on the next hour. our coanchor joins us from the venue in singapore. you have a busy day ahead. what are you expecting? haslinda: the conversation will ai.nd -- be around it has permeated all aspects of life. you talk about drones delivering parcels, paying for facial recognition and somewhere in japan you have a robot.

it is changing and the conversations will be whether it is an existential threat or if it brings a lot of advantages. it is probably somewhere in between so we will be talking all things ai throughout today. for now i am speaking with a nielsen ceo. this is the man who has had great experience in ai for the past 10 years. good to have you with us. contributed a change in conversation? how will you collate your ratings as well as consumer behavior? >> ai is fundamentally changing the way we do our businesses. we have two bank core businesses, the ai models are bringing in some much data to enable us to understand everything a consumer is watching or engaging in on any screen and whether they are publishing or receiving. it has given us a more robust

view and it is more predictive of what they're watching in the future. it is helping people create an program. the other works with retail and package goods. he gives us more real-time data about what people are doing everywhere in the world. haslinda: this comes against the back ground of scrutiny and greater privacy. how are you navigating that? >> one of those threats is privacy. it is important that one of the human values is we have the right to be private. why we are doing a lot with cybersecurity to make sure we are bringing in the data looking at it aggregate but never looking at it from an individual basis. it is essential to get that right. haslinda: will that be in the way of ai and bond [inaudible] >> not at all. it read -- requires the responsible stewards to think ahead and take our responsibilities seriously to protect every human.

you became ceo against a backdrop of people saying that perhaps nelson is not moving fast enough. what have you brought to the table? what changes have you made to ensure it is moving and it is competitive? >> i am a big believer in velocity. velocity versus speed. helped because there are a lot of great ideas and we were trying to pursue them at once and so choosing that we would be one media truth in getting everything focused and choosing that we would focus on the cpg and retail industries have helped us a lot. our products are moving much more quickly as a result area and redesigning the way we build our software. it is cloud-based and reusable and that allows us to work at the speed our clients need us to. haslinda: we have to talk about the u.s. and china. the perceptions of it that china is leading in this race. -china trade war,

which is becoming or has become a check or, how do you perceive -- what are the implications? >> we enjoyed very good business and good business in the u.s. and many of our clients work in both places so we watch it carefully. i don't believe there is right to be a winner in the trade war. i believe that the competitive battles of the future are about ai. they are about technology and technology grows when you are sharing more, when you are building on each other. i am keen to see their be more collaboration and less war. i don't think these battles are going to benefit the overall economy or the people. haslinda: who is leading the race? >> there are some technical advantages in china and the way they are structured. seeing some real advances. in the u.s. is also doing a lot especially between the public

and private sector working together. what is going to matter is we continue to have these machine learning models line and a fast pace and collaboration is the way both countries are going to go, grow faster. haslinda: i would like you to weigh in on the conversation that you out -- elon musk and jack ma had recently. it is an saying that existential threat. jack ma says don't worry. computers are smart but humans are smarter. where do you stand? >> the machines are getting smarter every day and the advantage of the machines are that they keep current -- learning 24/7. they have the ability to do new things. it is true that humans are much smarter than machines but machines are growing at a fast haze. it is important their be controls in the systems and it we payrtant that attention to cybersecurity and it is important to the clear what his machine and what is

human. strongtation is getting trade i don't think it is a existential threat that can be managed. we need to watch the power of these machines and everything i am doing at nielsen is making sure that we always maintain control of truth create and wet -- that we don't have machine generated truth that is different from humans. the s&p up 17% in that same timeframe. what needs to be done to regain investor confidence? >> i think before i arrived, there were a series of missteps and over-promises. i am focused on investor confidence, setting clear expectations and hitting or delivering them. as we build that confidence and people see we do what we say we will do, that confidence will

return. i have had a dialogue with our shareholders and i am patient. at quick solution is not the right answer. this is about the pay -- [inaudible] thank you for your insights today. chiefo of nielsen and investment officer in the company. back to you. paul: thanks very much for that. we have more to come here on bloomberg and don't forget the tv function, tv . you can catch up on interviews and dive into any of the securities or functions we talk about. you can be part of the conversation by sending us instant message during our shows. bloombergr subscribers only. check it out at tv . this is bloomberg. ♪

paul: it's get a quick check of the latest is this flash headlines. nissan ceo has admitted there is a problem with his stock link

pay according to local media. executives may have received more equity linked pay then they are entitled to under company rules. probe discovered the issue and has decided -- he will repay the company of necessary. shery: mitsubishi joint. it in investing and if finished app. monthlyoffers subscriptions that includes unlimited car rentals, public transport and even free short distance taxi rides. in app ways twice $6 million has raised 26 million in funding. setup up in singapore and japan soon. tokyo,ket opening in sydney, and soul. more on what to watch and markets. >> futures are pointing higher across the board and taking a look at how bonds are,

treasuries lower with a focus on the upcoming thirty-year sales from japan. bond investors are racing to buy superlong notes and the yen looking steady. some risk in receiving. check out the british pound. seeing a pickup in protective puts. let's keep an eye on korean automakers. that it laid its u.s. dollar bond sale given that the price and size of the deal did not meet targets and while we had doubts over conde developing -- yaounde developing its build, stonebridge has submitted [inaudible] plenty more to come on daybreak asia. bloomberg's sooner than you think event in singapore. the market open is next. this is bloomberg.

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>> good morning. >> from new york, i'm shery ahn. >> and i'm sophie kamaruddin covering asia's markets about to open for trade. man outsidevonne the legislative council in hong kong. welcome to "bloomberg daybreak: asia." >> our top stories this thursday, a triple brexit whammy. boris johnson loses a third

commons vote in 24 hours and fails to trigger a snap election. china signals more support for the slowing economy indicating a further cut is on the way. and protesters vowed to return to the streets of hong kong and continue their call for change. they say carrie lam's retreat is too little, too late. get straight to the market action in japan, south korea, and australia. how are we looking? sophie: we have some risk appetite returning this thursday. the nikkei and the topix gaining more than 0.6%. while the yen is steady, the 10 year could move to that -30 basis point mark. kospiul, this is the gaining ground. the korean won strengthening to a level not seen since august

21. now let's look at what is going on. forre seeing slight gains the 200. kiwi stocks are gaining ground over the kiwi dollar. activity showed a surprise decline. that has prompted the bank to cut its forecast for new zealand. a quick look now at what is going on with british pound. pressure early in the asia session as we seek to find out what boris johnson may hope to pull out of the hat given his defeat in parliament. paul? paul: let's check in on the first word news now with jessica summers. jessica: china signaling that a cut is on the way. move to release money

into the slowing economy. the state council calling for timely use of tools to stimulate growth. through usually follows with such requests from the council. inicymakers cut the rrr january. the u.s. is said to have tried to bribe the captain of a suspect iranian oil tanker, offering him cash to sale to a port that would impound the vessel. emailsve seen several from an official at the state department offering several million dollars. the ship's captain doesn't seem to have replied to the state department. dorian is edging closer to the eastern seaboard of the u.s. the torrential rains and sustained winds. the system is expected to weaken further, but should cross north laterna's outer banks

thursday. dorian killed at least seven people in the bahamas. the financial impact is forecast at about $25 billion. president isppine ready to define china. he said his country benefits from online casinos and will support the industry. investors have dumped philippine property stocks amid concerns he would clamp down on the offshore gaming industry which is overtaking business companies. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. paul: thanks for that. u.k. prime minister boris johnson has lost yet another vote in parliament, failing his

attempt to trigger a snap election. mp's moved to thwart a no deal brexit. let's have the very latest from london and bring in our supporter. -- reporter. the bill to stop a no deal the law and it could stay there for a while. >> you've certainly got many who are pro-no deal brexit who can talk this one out, filibuster, and that is what they are doing. the plan is to keep talking until they run out of time. the hope for those who are anti-the plan is to get this one through, then have some guarantee of no deal being averted. requesting a delay until january 31 unless a deal can be struck in parliament by the 19th of october or a no deal

is agreed on. boris johnson calls this a surrender bill. he says this negotiating position with the e.u. he needed a two thirds majority. he didn't get it. which at any other time would be unthinkable, that the opposition would say, we don't want an election. the labour party is making clear, they want to get this sorted first. he says the offer is like the offer of the apple to snow white by the wicked queen. that is what he's offering, the poison of no deal. the shadow treasury secretary saying that labour desperately wants a general election. on this occasion, they want to get this crisis averted first. shery: could we see opposition gambling on election win? >> i think we could.

there are many who are saying this is what boris johnson wanted to do all along. he needs to get a mandate for what he wants to do. he wants to get it sorted. then he can get on with his domestic agenda. lots of promises of money going into health care and other places as well. but it is a high risk strategy for the prime minister. we've got the threat of the brexit party. we've got the snp in scotland looking strong as well. if boris johnson loses an election, he would be the shortest raining prime minister ever in the u.k. shery: thank you so much. protesters in hong kong are vowing to continue their fight for universal suffrage, dismissing carrie lam's formal withdrawal of her extradition bill as too little, too late.

they say more would need to be done. >> after more than two months of social unrest, it is obvious to discontenthis extends far beyond the bill. it covers political, economic, and social issues. shery: yvonne man is in hong kong. we spoke to the leader of the pro-democracy party. he was saying that hong kong people will not be satisfied. so it doesn't seem like a huge victory from the protesters' side of things. yvonne: they are saying that this is not enough. they've had five demands that they wanted the government to meet and this is just one of the concessions. it is carrie lam's biggest concession yet. a lot of questions on what is

going to happen next. we are still hearing that protest are planned this week. in terms of how far she went and where she didn't go, she couldn't bring amnesty to some of the protesters who were charged, arrested, nearly 1200 that have been detained. she says ultimately they did break the law. she also didn't go as far as setting up a committee when it comes to investigating the police's handling of these situations. to members to the existing committee, but protesters say this is not enough. is most significant universal suffrage. this is after beijing explicitly ruled out that proposal. carrie lam reiterated that. she said there is room for discussion. opening that door.

it is too little, too late according to the opposition. as one protester put it yesterday, this move is a band-aid to rotting flesh. paul: some colorful metaphors there, but is this concession going to be enough to end the violence? it sounds as if it is not. lamne: some say if carrie had made this dramatic u-turn maybe three months ago, perhaps it could put an end to this whole movement. but we are going through 13 weekends of political unrest now. their demands have gone beyond the bill. they are fighting and willing to fight for more and they are demanding for more. we are still hearing that there's schedule protests on saturday. the school strikes this week are still ongoing at the moment.

carrie lam says, we want more direct dialogue with the public, but we need to restore social order first. >> our foremost priority is to end violence, to safeguard the rule of law, to restore order and safety in society. the government has to strictly enforce the law against violent and illegal acts. there have been some groups in hong kong that welcome this u-turn by carrie lam. the american chamber of commerce saying this could help in terms of combing the tensions here. and the markets as well seem to like the move. up close tog shot 1000 points on reports that she was scrapping this extradition bill. some say this is seen as a

temporary solution. shery: but a welcome relief nonetheless. we have seen retail sales taking a hit. not to mention the cathay pacific ceo. what is business sentiment like now? it is going to be interesting to see what the path forward is. talking about less than a month now where the ceo and the chairman have both resigned. in the midst of this political unrest, and with the airline being scrutinized by regulators in china after the airline allowed, may be tolerated staff taking part in these demonstrations, cafe eventually fired some of those employees. is thisquestion is, enough to retain confidence from

regulators in china? still plenty of headwinds ahead for the company, whether it is this ongoing protest, if they do potentially boycott the airlines. shery: yvonne man from the streets of hong kong, thank you for that update. coming up next, we return to singapore. gupta joins us exclusively, next. this is bloomberg. ♪

paul: this is daybreak asia. bloomberg's second sooner than you think conference in asia is getting underway in singapore. with thehor joins me

head of southeast asia's biggest bank. of course you are talking about dbs bank, which has been pretty much a front-runner when it comes to digital technology. piyush gupta has said he's embedded digital innovation into everything it does. good morning. piyush: i'm happy to be here. i was thinking of sending my avatar but i had to come by myself. fromw far away are we having a robot as the ceo of a company or a bank? piyush: tough question. there is job preservation. one, in terms of the power of , we are almost there. being works at about a

million. the computer only works at .01% of that. there is a supercomputer which in two years will have the computer power of 1.5 human beings. the compute power will be there in a couple years. they need to educate, learn, and so on. so the computer needs some time. that will take some time. even the learning curve is beginning to be far quicker than our learning curve. decade, you will start to get computers that can pretty much mimic what human beings can do. >> you've been an early adopter

of digital technology and ai. piyush: we use a lot of ai technology. we used rules based ai, then we moved to data based ai. the last couple years, we've been using more machine learning. you've got different models doing different kinds of things. data toving from pure the more machine data. ai can now predict when your call comes in just by seeing the phone number with high accuracy what you are calling for. you are likelys calling because of this.

so you just need to press this and you solve your problem without having to talk to anybody. that kind of understanding coming from ai, we couldn't have done before. >> when will a robot start hiring your staff? there's been a dramatic improvement in our hiring system. people based on grade point average, which college you went to, et cetera. ar many jobs, that is not predictor of success. and it does all the first round weeding through the applications. rates have gone up. how far do we get when we take the human out of the system? i think that could happen in the

next three to five years. >> you have to digital only banks. isush: what we are finding it is unique to be somewhat digital. in addition to a digital presence, we are going to create brand credibility. so we are doing that. points.reating more we are going to expand that. we are going to roll it out into other markets. >> you said before that there's really no need anymore. is that a sentiment that you still share now? when you missed out on the opportunity, you said it was a blessing in disguise. atush: if we look

scandinavia, netherlands, they've gone down 20% to 25%. they are shutting down the bank branches because they realized they don't need them. the people coming into branches in singapore is down. so you come to these branches. you still need some branches. i think you need some brand elements. would you be interested if it is made available to you? piyush: it is available to everybody now, not just to us. know, we did and acquisition a couple years ago. if you take on the physical

assets and overlay a digital strategy, we can do it pretty quickly. >> so the interest is still there. piyush: we are not averse to looking. >> the u.s.-china trade war, how do you view that? fundamentallyk there are issues of technology. not just from an economic standpoint, but from a military complex, dominance in those technologies is a game changer. i think there is a broader issue. notionntally, the creates stress and strain. that was a source of stress and strain on the system.

and there is an ideology issue. i think those tensions are fairly long-lasting. >> just one final question. hong kong, increasingly an important market to you. how concerned are you? piyush: we did stress testing as you can imagine. the overall shape of the sector doesn't make me sleep less at this point in time. i do think there will be some headwinds. retail sales have slowed down a lot. investment capital markets slowed down a lot. i think the best thing for all of us to look at is what do we do as we go forward. are going to put on their thinking caps to think about how they want to play this game. topiyush gupta, always great have a conversation with you.

named bank of the world, right? best bank in the world. thatnk at his been named three times running. paul: thanks very much. haslinda speaking exclusively with the cvo of dbs. don't forget, you can watch us live and catch up on past interviews. become part of the conversation during our shows. this is for bloomberg subscribers only. this is bloomberg. ♪

shery: this is daybreak asia. i'm shery ahn in new york. paul: and i'm paul allen in sydney. a quick check of the latest business flash headlines.

apple is ready to borrow $7 billion. it is joining a number of firms entering debt markets to take advantage of yields at all-time lows. billions more than $200 in cash and securities on its books. rest is telling boeing and airbus that it is no longer willing to accept -- the airline president says he's lost patience with glitches and poor quality that have delayed new models or forced costly repairs. emirates have outstanding orders. clark says he won't take them without a cast-iron guarantee of trouble-free performance. paul: software maker slack plummets in late trade after forecasting slower sales growth. to 156 will be 154

million dollars. analysts were expecting those soar in june and july. this is bloomberg. ♪

jessica: this is daybreak asia. protesters in hong kong are vowing to continue their fight for universal suffrage, efforting carrie lam's to withdraw the extradition bill as too little, too late. independent an inquiry into police action over the last three months and for lam to step down. >> after more than two months of social unrest, it is obvious to many that this extends far beyond the bill. economic,political,

and social issues. u.k. prime minister has lost another vote in parliament, failing his attempt to trigger a snap election. that antried to argue early election is the only solution to the brexit gridlock that has paralyzed britain. it is the third vote johnson has last 24 hours. singapore is to review electoral boundaries and signal a general election may be on the way. the process has taken up to four months in the past. the next election must be held by april 2021. vowed to minister has hand over power by the time he turns 70 in 2022. u.s. automakers enjoyed a second

straight month of year on year sales gains. deliveries say total may have risen in august thanks to cheaper financing. sales lead. month has been in a 92 streak of sales gains with deliveries rising almost 10% in august. global news, 24 hours a day, on-air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more i am jessicatries. summers. this is bloomberg. paul: thanks very much, jessica. let's check on the markets now with sophie in hong kong. sophie: u.s. and asian stocks on the front foot, with exporters leading gains. the nikkei leading the charge in the region of 1.4%. hong kong contracts close lower

after the hang seng rose 4% on wednesday. torie lam indicated plans withdraw the extradition bill. pickup ining a slight regional yields. the 30 year note under pressure. basisadding about two points this morning. -- the korean won extending gains, up 0.3% amid speculation there may be intervention after we saw reserves fall to the lowest level in a year. the dollar stabilizing after the biggest drop since june overnight. british pound holding above 1.22, but the currency may be looking to remain vulnerable as we are seeing action in the

market. checking in on what i'm talking on theith visualization terminal. this shows you that we are seeing a surge in protective puts going out over two months. october deadline very much in view. also seeing an increase in volatility. now i want to check in on some movers. starting in sydney, falling over payments foracy insurance and health care dropping by more than 8% after cutting its full-year guidance. in tokyo, seeing additions to sincekkei rising the most january 2016 as a medical information firm is set to replace tokyo to oman the index.

nikkei,anges to the that is to be reflected in october. shery: thank you. the state council of china is signaling that a reduction in the amount of funds banks must hold in reserve is on the way. this aimed at releasing cash into the economy. selina wang has the story. we could be seeing another rrr cut. >> we heard from the state council that they are asking for the timely use of tools. this comes as they also asked for more issuance of special bonds that often used by local governments to boost spending and infrastructure. this doesn't come as a surprise to many economists. of course, china has been under many external pressures, including the trade war. many economists had been

lowering their forecast to below 6%. that is coming in at less than the growth rate necessary for china to reach its goal of doubling that gdp growth by next year. it is important for them to stabilize and boost the economy ahead of the 70th anniversary. what is the context of the announcement? what other policy measures could be put in place? >> the chinese government has implemented tax cuts. they've been trying to boost domestic spending. they've revamped their interest rate system to get more liquidity to smaller firms. we just got data recently that shows the slowing economy is pressuring weaker companies with private bond defaults and economists say the policy so far has been moderating the slowdown, but the impact hasn't

been very great. so in addition to these required reserve ratio cuts, many economists are expecting a cut to that benchmark lending rate to reinforce some of the effects of that interest rate. this doesn't open the stimulus floodgates. china is trying to manage this trade war for the long-term and have a moderate change to the fiscal and monetary policy to prevent any bubbles in the economy. paul: china correspondent selina wang in beijing. thanks for joining us. let's head back to bloomberg's sooner than you think conference in singapore. what is on the agenda today? basically it is ai, where it goes from here. jobs may be at risk

if ai is dispensed across all sectors. singapore's minister in charge of trade relations and minister for communications, good to have you with us. all, $50 million over the next five years, trying to boost digital ai capabilities. >> first we have to put it in context. relative to the sums being spent in many other markets in the world, this is relatively modest. how we intend to optimize it is by having a clear focus in our efforts. ai is a multifaceted element. usageou think in terms of , it is where we think we can differentiate ourselves.

so those are areas where we issue what we call grand challenges. that leads to the next point. mobilizing public and private sector resources. working in collaboration with partners. mobilizing universities. aspect is the capability. it is a comprehensive approach. it is a targeted approach. seems toapproach that position ourselves as a meaningful player. thereore the trade war, was talk about global collaboration. now it seems more and more difficult. how is that impacting how ai is done? >> vigorously i think a global economy that is working in

unison, working in a collaborative way, will be much greater. it is not just about the technology. it is also about the data and how they are shared. with thenk even tensions today, what we are seeing is at the company level there are partnerships taking place. we see american companies, chinese companies, european companies, coming to singapore because they see a place which is conducive for the research and the work they want to do. not just upstream research, but applications and outcomes. middleing caught in the when it comes to the trade war, advancing ai in a big way. >> both are important partners for us.

the u.s. is a long-standing partner. china is our largest trading partner and the largest destination for our investments. we have good relations with them at all levels. objective, and i think that is something shared by the world, is for them to reconcile. i think it is about finding ways to collaborate in a manner that is seen to be acceptable to all parties and to advance the cause. because ai has much potential to deliver benefits, not just from a commercial point of view, but in terms of health care and so on. so we must not lose the value proposition for humanity in this larger picture. >> what is the best case scenario for the trade war and

what is the worst case scenario? is what i would say. the risk we face is one of a world where the economy is fragmented. and supply chains are fractured. and over the last several decades, it is a unified trading system that is rules-based, that has given us the scope and scale for the economic development and technological advancement we have seen. moveo we really want to towards that direction, ensuring that we have a solid, multilateral trading system that is rules-based, and a mechanism, whether it pertains to trade matters or other matters. >> given the uncertainty relating to the trade war,

brexit, [inaudible] >> i think this is an important thing. even if there are these tensions and rhetoric around the world, i think what we have sought to do is to find ways to forge new partnerships with like-minded countries. the most recent initiatives awaiting- which is now its final ratification. -- foralso initiating example, the joint services initiative together with australia and japan, which is focusing on e-commerce. we are also working on digital economy with new zealand and chile, and also with australia. meanwhile, we have our free

trade agreements. it is a collective effort. we must push ahead to build those bridges and create a stronger global ecosystem. are you willing to get a deal, leave behind those who are dragging their feet? >> i think we should not prejudge the outcome in terms of who is involved and who is not. -- there ishe focus tremendous potential just because of the size of the economies involved. what we need to do is make the best effort. that is what singapore is focused on, trying to get all parties to the table. we remain optimistic. to if there are reasons reconsider them, we will consider the options. >> s iswaran, thank you for

joining us. we are coming to you live from the sooner than you think conference, where the conversations revolve around ai. shery: thank you so much. breaking news at the moment. we are hearing from the electronics platform that they are experiencing system issues. that has delayed the start to u.s. trade in asia. there is no estimated time for trading to resume. we will have plenty more to come. this is bloomberg. ♪

this is daybreak asia. shery: talk of carrie lam's concession over the extradition bill sparked a rally on the hang seng. property developers, luxury

stocks, and banks also had big moves. some are saying it may be too soon to be optimistic. let's bring in our asset reporter, eric. not surprising given that protesters don't seem that -- with what they got. should we consider the fact that hong kong is coming off a pretty -- so does this give momentum for the rally to continue? >> the initial reaction from the protesters was one of skepticism. if this happened back in june, we might not be here at this point. i spoke to an investor last night. this seems to be a temporary solution. temporary in that it is not likely that hong kong there's are going to go along with this. we saw the jump in stocks yesterday. the futures for the hang seng

are pointing lower. it is entirely possible that we might see a pullback from some of the long positions in the market. how durable is this going to be? we've heard from commentators suggesting this isn't the end of the protests. could we expect to see ongoing declines on the hang seng? >> i think we have to keep our eyes on where the market goes. if we do see any kind of loss of momentum on the side of the protesters, that will affect market sentiment. the wider markets are looking more positive. the sentiment overall is better across markets today. that might also give us a bit of

a left as well. eric, thanksht, very much for joining us. sunlight has been among those hit, falling since june. the stock did see a rebound yesterday. let's discuss that with sunlight ceo keith wu. thanks for joining us. revenue was up. did you see much impact from the unrest? that came towards the end of this report. good morning. are for 2019. but nonetheless, we have a good set of results.

i think the performance continues to hold up very well. gains onently, the wednesday on the news that the extradition bill was being withdrawn. do you have a sense of optimism now that the uncertainty may be coming to a conclusion, or do you have a feeling it made well for a while? keith: obviously the most important part affecting retail sales in hong kong is tourist arrivals. secondly of course is sentiment in spending by local customers. i think it is a good start. we are bracing for a better future but it remains to be seen. shery: would an end to the

protests make a big difference for your business? keith: everybody is probably being affected. 50% in retail. so we are not immune to this impact triggered by the social unrest. however, i think we've done a assets,ptimizing our increasing our portfolio, so that we try to minimize the impact of any vagaries of the global economy. so far -- shery: please go on. keith: so far, you look at our results, 11.5%. assetswth of our key outperformed retail sales. point. shery: you just took us to my next point.

where do you see rental reversions in the next six months to a year? keith: rental reversion will go a little slower. possibly negative for select trades over the course of the year because of recent events. however, i think there's still a lot of defense elements that we can boost, including the financial institutions, food and beverage. they are doing well. i think that rental reversion will continue to be reasonably healthy. we need to provide appropriate measures to alleviate and hopefully stimulate sales. tenantsve you had any forfeit leases? have any tenants been outperforming? keith: outperforming is a relative term.

food and beverage are doing well. keith, thank you for joining us today with the latest on the rental property business in hong kong. hour, hongn the next kong electrical member, outspoken critic of the extradition bill. this is bloomberg. ♪

shery: this is daybreak asia. i'm shery ahn in new york. paul: and i'm paul allen in sydney. let's get a quick check of the headlines. singapore's sovereign wealth fund is among the most famous hotels. gic plans to buy a majority stake in the hotels in a deal worth $1.5 billion. it is the real estate arm of a canadian pension fund and expected to retain a minority stake in the hotels. shery: the nissan ceo has admitted there's a problem. havee are saying they may received more than they are entitled to under company rules. they are deciding whether to take disciplinary measures.

of's now get a preview markets later this morning. sophie: stocks very much in focus. ins after the biggest surge 2011. we are keeping an ion property shares in particular. the hang seng property index, the biggest jump since 2016. saying that stock is easing in the city. we are seeing housing futures close. more up next as we get to the open in china in hong kong. this is bloomberg. ♪ from the couldn't be prouders

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majors. that's the most of any time. some people think beating your record is a most impossible. jack: tiger is pretty good. david: the compensation was good in those days but not compared to today. making as much money selling insurance as i would've done playing golf. i surpassed it. david: what is the key to make somebody a great golfer? concentration, physical ability? jack: winning breeds winning. >> would you fix your tie, please? david: well people would not recognize me if my tie was fixed, but ok. just leaveis