paul: welcome to daybreak australia. i'm paul allen. kathleen: i'm kathleen hays in new york. sophie: i'm sophie kamaruddin in hong kong. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering in the next hour. the brexit battle continues as mp's demand to see the government no deal preparations. commons may be suspended in the coming hours. ford hits a bump in the road as moody's cuts its rating to junk. growing doubts about the

turnaround plan. the end of an era for the house that jack built. the alibaba co-founder steps down from china's top e-commerce company. kathleen: later in bloomberg technology global link, apple is preparing for its biggest event of the year, unveiling his latest iphones. a quick reminder of how stocks ended the day. kind of never really missed. we saw the s&p futures pointing a little bit higher. the s&p 500 was interesting today, closing within 1.6% of its all-time high. that was a move higher. basically flat at the close. the vix index nearly up 2%. the 10 year yield, bonds are a big story today. some analysts are seeing the selloff in yields from germany to the u.s., u.k. in around the world got some momentum from

that stock raleigh -- stockmarket rally. the 10 year note yield. go to the very far right. backup to 1.64. that was quite a move. more recently down around 1.5, 1.55. you see that. on themiddle, the yield far right-hand side. you can see a bounce up to .592 around .49. down and nownd was -.58. and that ittrade may not be as aggressive for easing. what does this mean for asian markets? sophie: we are taking a look at futures in chicago for the nikkei. we could be looking at a muted start broadly for asian stocks. bonds will be in focus. qe tracking that drop. checking in on cable, holding

onto a july high as we have more headlines and focused while the bloomberg dollar index has slipped to a two-week low. when it comes to themes i am watching today. asian autos will be in focus after the dismal sales numbers we got from china as well as from india. nissan in the spotlight as the ceo is to step down next monday given the scandal facing the executive. flipping the board for the data docket. we will be getting a read on australian vix confidence. machine tool orders from japan. a trade data for july. from china, we will be getting a read. both data points expected to show moderation. we could be getting new august lending figures as early as today. bear in mind, indian markets are closing tuesday. paul: thank you for that. just want to get you across some of the lines coming out of

westminster at the moment where the british foreign minister boris johnson -- prime minister boris johnson is speaking to the comments. he says the opposite -- by the opposition leaders own logic, he should be backing and election. that has not yet been forthcoming. he says the leader of the opposition mr. corbin cannot make the decision and he is also saying he will not ask for another brexit delay. that speech being made in parliament right now. speakersee this trying to calm things down. let's get to tim ross for more details on this. tim, more fighting words from prime minister boris johnson in the comments today, but he does not have a majority. tim: absolutely. he can use as many aggressive and punchy words as he likes. the fact of the matter is you can't get what he wants. he cannot get the votes into parliament to go ahead and take the you keep -- u.k. out of the

eu. on the deadline of october 31. that is what he put his whole campaign for the premiership on when he was campaigning for the job earlier this year. he's stuck with it. the only option now is to call a general election but parliament will not let him do that either. the debate going on as we speak is his second attempt to persuade parliament to back that early general election. nobody expects him to win that vote. people think the house of commons will say no, he cannot have an early general election so johnson is stuck, brexit is stuck and we have a five-week suspension coming up when people will have to regroup and try to work out their own ways forward. kathleen: it is interesting, the fight is not just within parliament, there is every kind of lawsuit being registered on both sides about all the steps each side is starting to take. it seems like it puts this whole

process deeper into a big hole. tim: quite right. indeed, there is even a possibility people are talking about for the prime minister himself to end up in court one day. he says he will never agree to delay brexit but parliament has passed a law saying he must delay brexit if there is no deal by the 31st -- that was the 19th he has to apply for a delay but he says he will not do that. how he manages to comply with the laws somehow or another and before the judges and fulfilling to hold his promise of yet to be seen. we has a plan but we have not seen what it is yet. paul: what have we been hearing from the eu during all of this? tim: the eu, as you would expect, watching with a great deal of interest and attention.

officials say they don't see any serious proposals yet from johnson or his government for how to resolve this difficulty. johnson was over in dublin, ireland today talking to the irish leader, but there were no breakthroughs in those discussions. it's so difficult to see quite how johnson can come up with a solution in such a short space of time. he will have to back down or there has to be a significant shift on the eu's part. otherwise they are looking for a no deal somehow or another or a delay. behavior isposition undermining respect for parliament. some might beg to differ that some of his steps lately has done the same. he's also saying i will not ask for another brexit delay. you said whatever he asked for, it to you does not stand much chance of getting it. is there anyone in this vast mix of legislators, past or present,

that can step into this and find something to move it forward? tim: traditionally, the key role and many of these kinds of debate has been the speaker. the speaker of the comments, john burke out, who earned bit of quite a reputation with his call of "order, order" -- he announced he will be standing down on the brexit deadline of october 31 because he thinks someone else to take over. again, even the stability we have heard in the comments in the form of the speaker who has given time and given opportunities for members of parliament to have their say on this complicated brexit process, that stability with him going is potentially also in jeopardy. the pound took a bit of a knock earlier in the day when he announced he was resigning. it is a move that can make it

more difficult to stop a no deal brexit in the long term. paul: we have the opposition leader jeremy corbyn on his feet now. he is saying that the house has expressed itself and a no deal brexit is off the table. tim ross, thank you very much. let's check in on the first word news with jessica summers. jessica: a survey of the japanese economy suggests sentiment is the gloomiest in years. the outlook among restaurants, taxi drivers and shopkeepers fell to a five-year low last month, reflecting deep-seated concern of the looming sales tax rise. poll indicates a slightly improved condition but respondents are much more pessimistic about the future. the world's bank says growth in indonesia will slide below 5% next year and warns of severe outflows of the global picture darkens. expansionst sees

at 4.9%, the slowest since 2015. indonesia's reliance on foreign investment, and stocks and bonds makes it vulnerable to outflows. sales in china fell for the 14th time in 15 months. deliveries fell almost 10%. manufacturers are reeling from the industry's longest downturn in three decades with no signs of an end. a similar gloomy picture in india where car sales saw the biggest monthly drop on record in august. deliveries plunged more than 40%, while passenger vehicle sales fell by one third. global news 24 hours a day on air and on twitter. powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. paul: thanks. still to come, plenty of progress.

steve mnuchin strikes a positive note about upcoming trade talks. details next. kathleen: elliott management wants to carve up at&t, but the move is impressing everyone but buyers. we will have analysis on that later this hour. this is bloomberg. ♪

paul: just want to get you across some of the latest lines coming out of the u.k. parliament. jeremy corbyn speaking at the moment in response to a fiery speech from prime minister boris johnson. jeremy corbyn saying the house has a breast it will. no brexit is off the table. jeremy corbyn saying he has no say to the government seeking in good faith and that boris johnson knows there is no mandate for a no deal brexit. the house debating boris johnson wish for an early election and

unlikely he will get it. u.s. treasury secretary steven mnuchin is striking a positive tone amid made trade talks earlier this month. he says a lot of progress has been made with china and the pboc representative will be among the beijing party. >> i expect the people of china to come over for the stocks. part of the conversations will be having with them is around currency and currency been of elation. kathleen: let's see how these latest trade of element are impacting markets. joining us from massachusetts, senior portfolio manager, marty. it is great to have you back on the show. we were just watching boris johnson speaking to parliament. we had our reporter joining us from london to talk about that. is this one of those things you keep on a burner and watch it waiting to see what happens or do you think this is posing a big risk? guest: i think it is really

keeping a lid on the market. you can see the market is very sensitive in the absence of any other fundamental economic news, the lack of progress on the trade talks. i think we will have some mild success on both sides after a few months. kathleen: what do you base that on? margie: because i think it is in both our interests and china's interests to come to an agreement on trade. both countries are too important to each other in terms of their imports and exports not to come to a mutual agreement. i think it is in everybody's interest and that is why they will come to an agreement that may be under the covers not all that substantial but something everyone can walk away and say we have a good agreement. paul: i guess the key question though is the timing. how long will it take? do you see china potentially trying to wait out the 2020 election or do you have a feeling something might be pieced together before, even if

it is not a final deal? margie: i think the 2020 election is too far away so i would expect within three to six months, we might see a deal that is satisfactory for everyone. paul: in the meantime, how do you place yourself in the market? i know that you think it is a good idea -- it is hard to justify being underweight equities right now. margie: i think so, because the alternative -- interest rates are very low. as a total return vehicle. in the u.s., the fed has stop to the tightening of last year and more in an easing mode, that says to me the economic growth will be sustainable, probably around 2%. i think that is enough to carry equities higher over than course of next year, especially in the growth sectors we think will do well. kathleen: does the stock market

need the fed to continue to cut rates at this point? yields have gotten so low. yield levels.w it doesn't make a difference to the kind of growth stock outlook you are looking at? margie: no, because i think there are two things going on. one is the economic cycle. two, we had a long-term secular decline in interest rates. japan bled europe and now on that same course. thatnk if they cut rates, will necessarily stimulate the economy but i think low rates are essential to allowing the country to keep growing at these levels. i think if they raise rates any higher than 1.5% for the 10 year, that will be construed as tightening. they are supportive of the economy and the markets. paul: i just want to bring up a chart on the bloomberg terminal that many viewers will be familiar with by now.

it is the global pile of negative yielding debt. it is coming down. while16 trillion for a and now 15.6 trillion. do you see this lowly truck starting to unwind now? margie: i am not sure we are finished with negative interest rates. i think that might be a feature for a while. it is a question of whether or not the u.s. can avoid negative rates. i think it is a coin toss because so much money gets moved and it really refaxed -- reflects the fact there is a shorter amount of duration for security and that is what helps drive rates to negative yields. kathleen: let's get a more specific about the kind of stocks you are looking at because growth oriented, u.s. centric technology industrials, have care tools -- some of these seem like middle-of-the-road, play it safe investments.

what kind of returns are you seeking as average -- i want to make some money the investor can get? margie: i'm thinking even if the equity market over the next 12 months returns mid-single digit to low double digits -- 5% to 10%, that would be satisfactory when inflation is low and when the alternative is treasuries at 1% or 2%. even junk bonds which have been a good return for fixed income investors have a yield around 4% to 5.5% or 6%. not real good competition for equities at this point. paul: i know that you think some countries are at risk of entering recession. i am just wondering which countries are on your watchlist? margie: in particular, we are seeing slowing growth and some of the emerging markets and we have seen central banks around the world try to avoid a slow

down and in those companies. i think globally, central banks are using and says to me, six months from now we should actually see the deceleration stop and maybe see a little bit of acceleration in some countries. i think that would be the case for the u.s., maybe around mid next year. we may the easing they did next year be reflected in higher growth in 2020. maybe some of the other countries in europe that have also eased. we may see a pickup in their growth. that would be a decent backdrop into next year. kathleen: at a time like this, decent backdrop sounds good to a lot of people. margie patel, wells fargo asset management senior portfolio manager. boris johnson speaking to the u.k. parliament. speaking of opposition leader, jeremy corbyn, who has just sat down from his remarks, johnson saying he should back in election. he says the leader of the opposition cannot make a decision.

johnson himself, i will not ask for another brexit delay. accusing the opposition behavior for undermining respect for parliament. jeremy corbyn got up to speak. he said a no faith government is seeking a brexit deal in good faith. notes a noinister mandate for no deal brexit. the battle continues. says brexitorter seems to be stuck in the mud. much more ahead. this is bloomberg. ♪

paul: this is bloomberg technology global link. i am paul allen alongside kathleen hays and taylor riggs in san francisco. let's take a look at the top global tech stories on the day. 50 attorneysup of general across the u.s. want an antitrust investigation on ad

practices at google. it will investigate the concern companies had for raising costs for advertisers and harming competition and asked whether google users are finding the best search results. uber is bringing food delivery service to south korea. it will continue until october 14 and then will stop operations at the company refocuses on the core business of ride-hailing. uber says closing down the local food arm will allow it to commit more resources to other markets in asia. chinese billionaire is putting his faith in flying cars. his group is investing in a german innovator as part of efforts to diversify into future technology. he led an investment round that raised $55 million to help them launch an taxi service commercially within three years. those are the top global tech stories we are watching. paul? paul: thanks.

the largest iphone factory in the planet is in the spotlight for all the wrong reasons. confirmedd apple both they violated chinese labor laws. the admission follows a separate report that alleges harsh working conditions. mark gurman wrote this exclusive story and joins us now from san francisco. mark, exactly what has foxconn and apple been accused of? showed china labor watch apple and foxconn were using among 30 at its lowest and 55% of its highest percentage of people and its workforce being temporary or dispatch workers. it means it is a group of people that on a base salary level get paid more but only employed two to three months of the year so they don't get benefits like sick time or vacation days. thi makes -- this makes apple and foxconn money. law shows that it cannot be more than 10%.

taylor: what does apple do next? how do they shift that labor? mark: apple is going to have to hire morenn to full-time staff in order to get them closer to the 10% level. the good news is right now we are right in the middle of peak season for iphone production and at the beginning of school season. that means numbers drop down to 30%. january and february, apple is going to need less temporary workers to do ramp up. that means they should able -- be able to put the pieces in place by next fall to have the percentages laid out appropriately. these accusations do not come at a great time in terms of optics. apple is launching a new range of iphones leader today. what should we expect? mark: the new iphones will not be significant updates.

these will be more minor changes. what we are seeing and hearing is that these designs will look similar but a big focus will be all about the cameras. the low end iphone that will be the iphone 11 will have a second camera in the back for enhanced portrait mode and optical zoom. pro withd iphone 11 much more advanced video recording capabilities. live, on-the-fly video editing. enhanced wireless charging, better gaming performance and such. the big changes will come next year with 5g, redesign of the phone casing, augmented reality cameras. i'm looking forward to next year. we are hearing that the company internally is looking towards next year. that they have moved beyond what they have announced tomorrow. paul: you will be able to follow that launch right here on bloomberg as well. mark gurman, thank you for joining us. that is bloomberg technology

global link. don't miss bloomberg technology 8 a.m. in sydney, 5 a.m. in hong kong, 5 p.m. in new york. next, we have plenty more to come. a check of the markets and latest news as well. this is bloomberg. ♪

kathleen: breaking news we want to share with you. reporting that north korea has fired two projectiles. they are citing unidentified -- citing south korea's joint chief of staff. firing unidentified projectiles twice. we will update you on the story as we get more. paul: thanks. an ongoing debate of the house of commons in westminster in the u.k. boris johnson still trying to seek the general election. he had been quite fiery in his

opening remarks. jeremy corbyn saying the prime minister knows there is no mandate for a no deal brexit. the house has expressed that no deal brexit is off at table. that debate is ongoing as you can see. kathleen: go back to the stock market because of this news broke before the bell, you might see a somewhat different close. slumping after trade after being dealt a major after the bell blow. citing doubts about the company's turnaround. su keenan has been watching this story. su: it is a big blow because we saw ford stock in the regular session outpacing some of the regular indexes. after hours, it is taking a bit of a hit and that is on the news that moody's cut its rating. its outlook to stable from negative. this is all about the ceo, jim hackett's lengthy and expensive

turnaround plan. said,look to what moody's the quote from the analyst said the lower rating reflects the considerable operating and market challenges facing forward and the weak earnings and cash generation likely that the company pursues a costly restructuring plan. we know the ceo has had a hard time short of promoting his plan around wall street. also, ford is one of the biggest issuers of corporate -- it's widely held. sor those who do own ford' bonds and loans, the other two big credit rating agencies, two steps above specular rating. moody's did raise the outlook on ford to stable. what is their reaction? an's go to the quote from email statement we got from ford.

they say they remain very confident in "our plan and progress. the balance sheet is solid. we have plenty of liquidity to invest and the compelling strategy for the future." what is real important is this talk of whether they'll will be a downgrade has been going on for some time. you look at the year-to-date stock chart, you can see it has had its troubles. investors have been compensating if ford can maintain the investment rating that they had some pressure on profits. the july forecast was disappointing. ford has been struggling to compete in china's slumping market and the turnaround plan which involves overhauling some of their sedan models that are not selling as well, cutting thousands of jobs, really has not gone over that well. the good news is that it remains out of the fallen angel market. the other credit ratings, it would be a move from some of the

investable rates, bond yield indexes. many believe that is a positive for the company if it can stay the course. no more downgrades. paul: su, thanks very much. now let's check in with the first word news. exports taiwan's rebounded more than expected in august. the trade war accelerated the relocation of manufacturing plants to taiwan and a new iphone launch cycle lifted demands for smartphones. overseas shipments rose 2.6% last month, compared to a contraction at half a percent in july. imports fell 2.7%, leaving a trade to surplus of $6 billion. north korea says it is willing to resume nuclear talks with the u.s., but that washington must come to the table with what pyeongyang calls acceptable new proposals.

observers say north korea wants the u.s. to offer purity guarantees and relief from crippling sanctions. there has been no official response from washington but the administration recently said it is ready to resume talks. and small-cap investors remain bullish in china. the index gained almost 2.5% on monday, taking its rise from the june 6 low to 22% and entering able market for the second time this year. investors have been particularly keen on tech stocks which dominate the index. that is amid optimism of further easing from the pboc and a trade deal between china and the u.s.. global news 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. kathleen: now we want to get more on the market action. we are heading back to sophie.

sophie: we are keeping an eye on bonds. kiwi notes this morning, tracking the overnight drop we saw. treasury yields rise to a two-week high. trading futures under pressure early in the asia shush and -- session. switching out the board to check in on what is happening on the terminal. with bonds under pressure, that is putting a dent in the global pile of negative yielding debt. last week, that amount fell by $1.2 trillion, the biggest drop since bloomberg started compiling this data. mood,he up beat market expectation firms to keep up the dollar bond sales we have seen. this after the best ever start to september. fell week, asian companies $8.5 billion worth. the average spread on investment grade paper is keeping steady at nine basis points in august. paul: thanks.

area's factory gate prices expected to have fallen further into deflation in august while consumer prices are seeing easing by the cost of pork. tom mackenzie joins us from beijing. run us through what we can expect today. tom: the topline line numbers in terms of forecast, consumer prices are expected to slow to 2.7% in the month of august from 2.8% in july. you do have that component in terms of prices. wholesale prices for pork increased by about 15% in july. that is part of the mix, but pork is a smaller part of the basket in terms of cpi that it once was. other factors like the demand for consumer goods which is weaker as a result of the slow down in the economy is expect it to prove a drag in terms of cpi. in terms of producer prices, you are effecting to see another contraction, another drop into conflation every territory.

-0.3% in july. for factoryer drop gate prices and that will weigh on the profitability. that is the concern, the ability to pay down debt. a lot of this is down to the cost of commodities on the year on year basis, but commodities have fallen terms of their prices. things like steel rebar and oil. going forward, bloomberg economics expects those factory gate prices to continue to weaken towards the end of the year as well. another spike for the industrial sector. kathleen: the story for me, the soaring pork prices causing political problems. with the alleged cover at the local level. chinese it seems policymakers are maybe concerned but not concerned enough to really worry about the overall inflation for the cpi. paul: i think that is right --

tom: i think that is right. this is a major issue in china. asst to recap, swine fever h affected less -- has left the pig population decimated and that has led wholesale prices up 15% year on year. policymakers are increasingly concerned. we heard from the vice premier, other lower level officials accused of a cover-up in terms of not giving enough information about the extent of the problem. saying province s they will release some of their stockpiles of frozen pork over the holiday to soft and the prices. we heard even the banking regulators say that bank regulars should step up loans to farmers. the financial system is trying to get behind this. local government officials trying to get behind this but it is a problem many expect to

continue. in terms of what it means for the pboc and their policy of easing, it is not expected to hamper that because it is a smaller part of the cpi basket. in terms of the easing, the priority is to ensure the manufacturing sector is supported. it is expected to derail that but it is certainly something firmly in focus, particularly as theead up to october 1, anniversary of the founding of the people's republic of china when many people are respected to celebrate by consuming a lot of pork. paul: tom mackenzie in beijing, thanks for joining us. coming up, tuesday is the end of an era for alibaba as jack ma steps down. we will ask what is next for him and his company. this is bloomberg. ♪

paul: i am paul allen in sydney. kathleen: i am kathleen hays in new york.

alibaba faces the end of an era today as cofounder jack ma steps down as executive chairman and hands over the ceo to daniel jang. $66 billionue of last financial year and has made ma china's wealthiest man with a net worth of nearly $40 billion. this is the man behind the story. >> jack ma started out teaching english more than 20 years ago for just $15 a month. in 1999, he jumped on the internet train, setting up a platform for business-to-business selling. that was alibaba. after that, he took aim at ebay, which let individual sellers trade with each other. 2007 was a milestone as it listed its division in hong kong, delist five years later as performance sagged. however, the company made a big comeback in 2014, raising $25

billion in new york with the world's biggest ever ipo. >> everyone should have a dream. whatever that dream comes through? >> he leaves an empire that has expended aggressively. cloud computing, health care, fintech and news media to name a few. the challenge ahead, in the face of growing competition and a slowing chinese economy, may sustaining the growth. he warned about the u.s.-china trade war, saying the impact could last decades into the future. he also urged chinese businesses to find opportunities from it. jack ma has not forgotten his roots. december 10 is teachers day in china. literally, quite wrote the book about jack ma and his empire, in alibaba: the house that jack built. bda china.

duncan joins us now via webcam from utah. it really is the end of an era. one of the titans of corporate china leaving. what sort of legacy will be leave behind? duncan: you are right. i think he is a titan not from the states. the state owned enterprise companies dominated initially. lots of smaller private companies from the early 1980's, but he gave the private sector companies scale because of the internet. combining those two things, the private sector revolution which was already underway, but combining that with tech to make these large national and global companies. did literally write the book as we said. i'm sure you gathered many anecdotes about jack ma around the way.

i'm wondering if you can share one of your favorite ones with us. duncan: 20 years ago, i met him in a small apartment where they founded the company. walking into that small apartment where there are 19, 20 people crammed together -- shoes wrapped the door and you could smell -- it was not the easiest smell, but it was the smell of a startup. with noodles and soks basically -- socks basically. legend was born with alibaba. kathleen: what is it about jack ma, as a former english teacher, that gave him what, the vision, to inner entrepreneur urge start a company that was coming out of nowhere almost, coming out of china. building up an industry that had begun but is still in its early days. chutzpah,e combined

he had this amazing ability that we have seen in english but also chinese. it is language but also his grip, determination. alibaba is the third company he started. his first one was a translation company that failed. his second one was a tech company that was squeezed out by the government. it was his third time around. the determination is a key part of that. he also worked briefly for the government before. he had joined the communist party, although many people did at that time. the question is as the company gets bigger, how did they coexist with the government and the state owned enterprises they are challenging? kathleen: that is an important question. how has jack ma navigated that so far? is he leaving at a time where it might get a little more difficult as president xi has pulled in the reins of power more? is this a good time for him to be leaving the company?

duncan: he telegraphed his decision to step down. we should take that with a pinch of salt, which you could buy on alibaba, by the way. he is retaining his board seat and membership of the alibaba partnership. he's not going away completely, but he telegraphed over a year ago his desire to step down as chairman. it has shifted from the government towards private sector companies. company, the state owned companies. another ceos have been in the firing line for transitions or the fact they are doing well. he reads well the music and he is pulling a bit to the side but not stepping down completely. paul: what does alibaba look like post-jack ma? he is not stepping down

completely, but the shut up in the room, how will daniel manage things? duncan: daniel is the third to ceo. jack was the second, and then daniel. he's the chairman. any founder of the high-profile company like this, critically a very high-profile individual, is hard to replace. to some extent, he is not being replaced by daniel. it is sort of a self-driving company. daniel is the administrator. he comes from an accounting background. jack and the team have built a machine. a cash machine in terms of retail. it is also moving into cloud and new areas. those new areas are not really jack's forte. he comes from that entrepreneurial background. now it is to build on that. paul: if you want to wind the clock back further, he is from a

teaching background. now he is going to return to education, a system which he says needs an overhaul. what does jack ma do next? duncan: china domestically has massive challenges, including in rural areas in areas including education. he has to tread carefully. he's a very international guy. he was in africa, talking about entrepreneurship in africa. funding prizes there. he likes the fact, africa reminds him of those early days in china that he saw the opportunity. he's spreading his wings. he's narrowing his focus to education, environment and philanthropy. areas that are not going to be a challenge to the government under an increasing or -- authoritarian xi. kathleen: we were showing a shot just now of jack ma getting ready to go toe to toe with elon musk.

that made a lot of news. did you watch it and what did you make of that interchange? duncan: the ma and musk tie up without a moderator was an interesting one. it was very clear that jack was a little uncomfortable in that setting, particularly talking about the negative aspects of a.i. or the future of technology. he had a solid space in technology. his experience is how much china changed his life. musk is much more worried about robots taking over. nothing that speaks to the stuff that jack is inspired by. a week earlier, he had an event. he likes being in the limelight for the softer skills rather than pure tech. he does not come from a tech background or finance background. he can play to his strengths now, i think. paul: all right, author of "alibaba: the house that jack

built," duncan clark. let's check in on the events in britain. the debate happening in the house of commons. we've heard from the prime minister boris johnson. he is seeking a general election as he does not have the majority in the house. he's also saying he will not be seeking an extension to brexit beyond the october 31 deadline. the labour leader jeremy corbyn telling boris johnson he has no mandate for a nokia brexit. we also heard from the liberal democrats, saying they want to stop brexit completely and revoke article 50. the house as divided as ever in westminster as the debate continues. kathleen: a lot of breaking news as things get underway. softbank has now said to be pushing wework to postpone their ipo. very interesting. executives at wework and softbank discussing whether to shelve plans of the ipo, a

money-losing, co-working company. softbank is pressing them to do this after investors expressed some very serious concern about the business and its corporate governance. they asked not to be identified because discussions are still private. wework planned to hold a roadshow to promote the offering as soon as this week. the financial times earlier reported on softbank's position on monday. big news. keep it right here. this is bloomberg. ♪

>> china is basically a healthy market but because there is a trade war, it is basically in a recession. that is a new situation that is scary for us. >> the manufacturer that is best prepared in volatile markets. why? because flexibility is clearly one of the areas, in particular

in production, we most focus on. >> it is something we have to deal with. no one knows is coming next but be prepared for it. we know we have to transformation going on besides the trade war. therefrom key voices the frankfurt motor show on never getting the trade war. there is plenty more from frankfurt later on today. a stellar lineup of interviews, including carlos tavares, ralph steff. kathleen: coming up in the next hour, we have chicago's former fed official talking about the federal reserve and the global easing trend. paul: all right, let's get a quick check on what is happening back in london at the moment. the debate continuing in westminster as to having another election which boris johnson,

you see him there exasperated, desperately wants one. he does not have a majority and unlikely to get one. the prime minister saying the leader of the opposition jeremy corbyn cannot make a decision, he should be backing and election. and boris johnson will not be asking for another brexit delay. in response, jeremy corbyn says the house has expressed it will, a no deal brexit is off the table. ruling on exactly that on october 31 has become law. jeremy corbyn saying there is no mandate for a no deal brexit. kathleen: of course, more news out today. president trump is getting ready to host a maga really, make america great again. you can see vice president mike pence speaking now. knows,trump perhaps, who wanting to talk about the trade war and how it is not hurting the u.s. or maybe it is worth the battle to keep fighting it.

he may be speaking about the economy. steve mnuchin, his treasury secretary saying it is causing no damage to the u.s. economy. that is it from daybreak australia. we will get all the action on daybreak asia. ♪ devices are like doorways

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>> good morning. i am paul allen in sydney. we are one hour away from the market open. >> good evening from bloomberg's global headquarters in new york. on kathleen hays. and i'm sophie kamaruddin in hong kong. welcome to daybreak asia. paul: our top stories this tuesday, the brexit continues as mp's demand to see boris johnson's no deal