heidi: very good morning. we are under an hour away from market opens in japan and saudi arabia. sophie: welcome to "daybreak asia." haidi: our top stories this tuesday -- not so fast -- china wants more talks from president trump's major trade deal, saying details need to be clear before anything is signed.

the trump administration called on turkey for an immediate cease-fire in syria as it confirms sanctions on three senior turkish officials. shery: the u.k. government pushes ahead with brexit, although the current eu government says there's no chance of a deal this week. haidi: markets have just open for trade. let's get straight to the market action. sophie: we are seeing aussie .hares moved to the downside morgan stanley warned against jumping into stocks with u.s.-china partial agreement seen as more of a truce that a deal of notable significance. elsewhere, we are seeing gains and we could see an event in tokyo with markets reopening in japan. head of cash treasuries zooming trade, flipping the board. futures staying about 10 tix higher on the session after paring overnight gains. looking steady now, minimal reaction to the new york fed's manufacturing index. so far this morning, aussie and

bonds slightly higher with yields ticking above 1%. haidi: thank you. let's get to first word news now with ritika gupta. itika: the current president of the european union says there will be no deal before this summit.wo-day leader the prime minister of finland says time has run out to reach an agreement before thursday's meeting. the news came as queen elizabeth delivered the traditional speech outlining her government's legislative agenda. and protesters clash at barcelona airport as secession arguments burst back to life.

sentences of 13 years were protesters triggered and angry , aponse from pep guardiola supporter of catalonian independence. india has partially restored mobile communications in jammu and kashmir, two months after wasregion's autonomy question. new delhi says separatists make use the internet to provoke anti-india protests calling for independence. president trump is imposing sanctions on turkey affords military incursion into northern syria. his statement comes just days after he effectively cleared the way for the offensive by pulling u.s. forces out of the area. the sanctions will raise steel tariffs back to 50% amid calls

of trade negotiations. the turkish army claims to have killed hundreds of terrorists since the incursion began last week. 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 ritika gupta. this is bloomberg. shery: china seems to be pressing because on trumps a fire's military trade deal. steven mnuchin says there are plans for more negotiations. >> the current plan is there will be deputy level calls this week with principal level calls next week with ambassador lighthizer and myself and the vice premier. if we need to have in person meetings, obviously, we will do that. shery: our china correspondent is watching this in beijing. can we take this as beijing's usual measured response, or is there something else here?

>> it largely comes down to a lack of trust. the u.s. don't trust the chinese to implement the deal, and that has been a big part of the reason why they push for an enforcement mechanism. that is not there in this phase i deal. on the chinese side, they have significant lack of trust when it comes to it president trump will hold up his side of the agreement. they were we blessed by previous deals that they thought they had secured with trump only for him to turn around and slapped tariffs on them or send a tweet that underwrote or at least took apart the compromise they had come to. they feel like they've been burned in the past. that is part of it. what we are hearing is that they want to iron out the details for potentially handing this over to president xi to sign alongside president trump. maybe the apec summit in november. the other thing our sources are saying is that the chinese want a commitment from the u.s. that they will not impose additional tariffs come december 15. those are in the pipeline. they want to make sure additional tariffs on are coming

down from the u.s. come december 15. part of it is the lack of trust and you see that in the way state media are reporting on this. i have not called it a deal. they have said they have -- there has been substantial progress, but they have been cautious in the way they have framed this. all of this is leading to many suspecting this deal will be very difficult to achieve, to nail down, to get to the point where you have a final agreement. a final agreement between the u.s. and china is still unlikely by 2020. if you want to get a sense of how committed china is to the phase one part of this agreement, you should look at the yuan according to capital economics, at least. ofy little movement in terms the fixing for the currency. it has, of course, strengthened offshore and onshore in the last couple of days on the back of this agreement, but there is a china is committed

to upholding a stronger currency, you will see that in a stronger fix. you did not get that on monday. we may get that today, so that is something to watch out for as well. >> how does the situation in hong kong also way into negotiations? tom: it seems in the last few days, president trump has want to do sideline the issue to some extent, which of course would please beijing, but the reality is things are moving forward of their own momentum. you have the protests, the unrest continuing in the city and from the domestic u.s. political side, you see there is a bipartisan push now to sign off on the hong kong human legislationemocracy that would lead to potentially the statusheck on that hong kong has. you have republicans like ted cruz who have been in hong kong to show their support for protesters. it seems trump wants to keep it a separate issue, but the momentum they just mean it is forced into these negotiations further down the line, and that is just another factor that has

to be weighed in to the negotiations between the two sides, alongside questions about human rights, national security, technology, of course, so it just makes it that much more complex. >> let's take a look at how it played out in global markets. a pretty muted session on wall street overnight as we got the report aging is looking for more negotiations before president xi will sign any sort of trade deal. singapore.ver to great to have you. it feels like we could go either way because it feels like market participants have a bit of fatigue in terms of getting too euphoric or too disappointed by headlines. you say there's too much negative positioning. what makes you think we will see a breakout from here? moment if you look at the markets, it does feel like

positioning is to bearish. i think in the near term, we possibly do have room for a technical bounce. if you have a look at, for example, the american association of institutional , that index shows that bullish sentiment is near all-time record lows and we are pretty much at levels that have coincided with a rebound in equities. if you have a look at the semiconductors index, for instance, that is near record highs at the moment, and that index, the semiconductors are actually outperforming the broader market and we are poised to break out there. if you look at the commodities front as well at the moment, interesthe short positioning in copper futures. they are pretty much near extreme shorts, yet we are not actually seeing copper prices track lower as well. overall, it does look like positioning at the moment is tilted too far to one side, two

negative. we may have a clean out, and that should be supportive for risk assets in the near term. bondfound your call on the market really interesting. after the brief bounce we had, we have gone back to the old playbook, which is buying bonds and selling equities. at the end of the day, are we at the end of this cycle? will that be more of a structural determinant than what happens with any sort of short-term phase one trade deal? think near term, we cannot get -- we can get bonds selling off a little bit more. we think we have pretty much got an unwind of that trade to go. broadly speaking, though, fundamentals are still supported for fixed income. nothing really has materialized on the trade front.

we got the agreement to get an agreement essentially, so it does not really look like much has changed there. structurally, the main issues have not been addressed. we do expect the fed will most likely have to cut later on next year as well. overall, we've got a low growth backdrop inflation disappointing and trade flows slowing down at the moment. overall, it does look like central banks globally are going to have to lead. >> you talk about rate cuts next year. how about this year? >> we are expecting the fed to cut later on this month by 25 basis points. eventually, they moved to the sidelines, but our view is eventually we will get further weakness in the u.s. economy. we have seen manufacturing already come off. at some point we think services will follow as well. that is probably going to draw

the fed back into play next year. does that due to the u.s. dollar? we are expecting the fed to cut but other central banks around the world to cut as well. will this leave the u.s. dollar and the u.s. economy is the best house in a very bad neighborhood? >> i think broadly speaking, yes, the u.s. dollar should continue to appreciate over a six-month period if you want to call it that, but i think in the near term, the risks have skewed more toward the dollar continuing to weaken. from a technical perspective, the u.s. dollar has broken through trendline resistance through june. if the near term view is that we could get a bounce in risk

assets, then i think that the u.s. dollar could come under a little bit more pressure, and int should be supported markets such as emergent -- emerging markets. looking for the u.s. dollar to strengthen just as the global outlook still remains quite cloudy. stick around. still ahead, the pageantry of the queen's speech does little to boost faith in boris johnson's brexit plan. the eu reiterates there's no deal yet. plus, president trump is imposing sanctions on turkey and is "prepared to destroy its economy" over the campaign in syria. this is bloomberg. ♪

"daybreak asia." korea makes a rate decision later this week, and it is widely expected to cut. says not so guest fast. the bank is more likely to remain on hold. thank you for sticking around. give us your reason why you think the be ok will hold. pretty much a line ball decision. is not ife question they are going to cut but really a question of when. it comes down to if they cut tomorrow or next month. i don't think it is such a big decision at the moment. if you have a look at the ,inutes from the august meeting

it did show there was a dovish bias to those minutes. concerns are the growth and inflation coming in below trend, so, obviously, they are going to cut rates there, but there were questions among some of the members regarding premature easing and the fiscal imbalances that might actually create. we did think that essentially for can afford to hold off now. we do expect them to alternately cut once again but moved to the sidelines and then potentially cut again in q1 2020. >> if it's this week or later this year, is a rate cut a given? given that they actually have leeway to cut, we have seen consumer prices now contract for the first time, i believe, ever in september. >> they do have room to cut. if they want to go tomorrow,

they can. there's nothing that really suppresses them from holding out essentially, so, really, they will deliver -- most likely deliver. it's going to be some time this nothing thatre's is really pressing them at the moment from cutting. you've mentioned, asian currencies have held up relatively well. we have seen pressure on turkish assets, for example. we are getting rba minutes to explain their move to a fresh record low earlier this month. is that resilience going to dissipate soon? >> i think once again, the outlook is that currencies other than the dollar should perform relatively well in the near term. that said, it does look like

there are glimmers of hope within the asian space. regional pmi's seem to be improving as well, regardless of if you look at them on an gdp-weighted or basis. overall, it does look like there are some glimmers of hope and a backdrop of easing from central banks, that does look like it for non-usupportive currencies. asian currencies we think should hold up relatively well in the near term, but overall, we do think that once again, pressures are going to emerge later on that should be supported from the u.s. dollar. >> the minutes of the october meeting from the rba we get later today, and we are expecting to hear that further easing is needed. central banks kind of run to the

end, the maximum of what they can do with convention or -- conventional monetary policy. what does this potentially look like and does it have the impact on markets that monetary policy used to? thehat is the problem governor has addressed and i think all central bankers have addressed the issue that as you essentially head lower in the cash rate, the impact on the market tends to be less. that is something the rba is having to question. we have already seen it. the rba ended up cutting rates earlier on this month, but we on tot get the full pass homeowners. so there are limits to what monetary policies can achieve and that is something that the rba has reiterated. i think ultimately at some point, the rba is already doing the groundwork on what looks likely on unconventional monetary policy, so that work is

going to continue. but we do not think this is something that will emerge any time soon. by the end of this year, it is something that we will hear a lot more about next year. bigger, potentially, the need for fiscal and provincial securities to do the heavy lifting. thank you for joining us. let's head to hong kong for a look at how markets are faring this tuesday morning. sophie: aussie shares are snapping a three-day advanced. resource names weighing the most on index while the aussie dollar and bonds are certainly higher before the rba releases october minutes which will be looked to for dovish signals. cba is in the camp that expect rba to stay on hold until a cut they see in february 2020. southern cross sliding more than 20% after lowering its guidance, this on a drop in first-quarter revenue. the forecast also includes

one-time restructuring and incremental operating cost. looking ahead, they expect markets to remain volatile. nine entertainment is off this morning. the offer period has closed for their takeover and it will make a compulsory acquisition. shares of spectrum rising to an .ugust 2018 hi plenty more to come on daybreak asia. this is bloomberg. ♪

>> you are watching "daybreak asia." flood of bank earnings will grab the spotlight later tuesday is goldman sachs, j.p. morgan, and citigroup kick off their season. has a preview. falling interest rates really not helping these banks. su: that will be a key area of

interest when we see what banks have to say. the crowded calendar of bank earnings is what is putting the focus on this flood that kicks off before the bell tuesday with j.p. morgan, goldman, citi. bank of america wednesday and morgan stanley rounding things out on thursday. if you look at the way stocks closed in the session, they were the outperform or even though they have been trailing the s&p year to date. let's take a look at the facts. the quarter is expected to be challenging for banks from a revenue standpoint. revenue estimates for the biggest six banks have been plunging about $13 billion since the start of the year according to analysts and we have downward revisions for morgan stanley and goldman that are most severe. this is the yield curve. even though it has steepened, you have a low yield environment, possibly more rate cuts. lower borrowing costs could increase lending

demand or borrowing demand. lastly, you have good trading revenue. that has always been an area of focus. will it ride to the rescue here? analysts say probably not, although thanks to market volatility, at least three of the five banks could pose higher trade revenue year-over-year. citigroup and morgan stanley are expected to go the other way. continue to watch and talk about the fallout from the wework debacle. , challenging environment for ipo's is likely to play out as well. su: absolutely. if you look at the weakness in the ipo environment, it raises the question of if you will see over exposure by j.p. morgan. wework, one of the ip's that had to pull their offerings. a lot of its fund clients among

their top shareholders. goldman sachs specter to write off a lot of losses including uber and wework -- goldman sachs expected to write off a lot of losses. third quarter adjusted eps expected. the consensus is for 246 on adjusted revenue of 28 point $47 million. look: su keenan with a ahead at what to expect from the banks. sending under fire for browsing data including ip addresses to tencent as foreign companies struggle with how to work in china. information is sent as part of an iphone and ipad security that determines if a website is malicious or unsafe. has madeer

terminations at is down about 30% since may's underwhelming ipo. m is close to securing nearly $2 billion of new financing from investors. this is bloomberg. ♪

>> what we are talking about now is right where we started 18 months ago or so. >> we are seeing the headlines this morning that is looking like maybe we are still in this kind of back-and-forth. >> this ping-pong ball going back-and-forth, we've seen this before. >> this is groundhog day, groundhog week, groundhog month.

i have to go with sort of our leading indicators which are still pointed downward. guests of our earlier weighing in on the trade back and forth. a number of investors say they are not buying that trade truce. to take a look at how we are setting up today, a muted session coming together. bonds are tracking higher as recession fears are returning once again. offshore yuan looking steady after a four-day advance on track to that seven handle. we will see today if the pboc does come through with stronger fixing after keeping their friday's records rate yesterday. citigroup did not see a sustainable push through to seven less than market prices and a deal for tariff rollback. the pound stalling after rising .bout 7%

>> let's get you to first word news with ritika gupta. ritika: the protests and hong kong may have taken a dramatic turn with police saying a homemade bomb was detonated near a patrol car sunday. the bomb disposal team says the about 10s set off meters from a police car. police say the bomb required some knowledge. the running protests are taking a toll on the hong kong economy. the redacted central bank is lowering the capital buffer at the bank. the buffer will come down immediately to allow lenders to be more supportive. indicators signal

the economy has deteriorated significantly since protests began in june. inflation in india climbed to its highest level in more than a year, posing a rba's goal ofhe easing monetary policy. than the median estimate in a bloomberg survey and faster than the revised figure from august. police and protesters clashed at spain'sa airport as secession area argument burst back to life. sentences triggered an angry response from top football coach pep guardiola who was a top supporter of catalan independence. he describes the ruling as unacceptable in the 21st century. 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 to cook up to. this is bloomberg. >> queen elisabeth's speech laying out boris johnson's brexit vision did little to boost confidence in the prime minister's plan after the eu says it's not ready to sign a deal just yet. our global economics and policy editor kathleen hays here with the latest on brexit. what exactly did the queen say? kathleen: the queen basically laid out for boris johnson exactly what he gave her to say, a look at how the economy will look, what policies will look like once his brexit deal is passed. you can see her sitting down in .he house of lords she, too, following johnson's lead, went right to the importance of frexit. >> my government's priority has always been to secure the united

kingdom's departure from the european union on october 31st. my government intends to work towards a new partnership for the european union based on free-trade and friendly cooperation. kathleen: in a statement after the queen's speech, boris johnson, who also attended the speech in the house of lords, said he can work on immigration, health care, things important to the british people. he said people are tired of gridlock. they do not want to wait any longer to leave the eu, but this is a very difficult question, just as it was for theresa may. he has so little support in parliament, so far away from majority. even his own party, the conservative party, his looking at the specter of calling for an early general election, but that, too, will slow things down into that october 31 deadline, and the opposition a strong across-the-board, in his own party, the opposition labor

party, the opposition labour party. jeremy corbyn after the speech said boris johnson promised to dazzle us with his vision. it turns out to be nothing but fools gold. any helpot getting from finland, either. what does the prime minister have to say? kathleen: he basically said, there is a council meeting this week, a big two-day summit. they are running out of time. he said no time in a practical or legal way to reach an agreement before the council meeting wraps up. afterre is a possibility the council meeting, it would be so, but this, too, is complicated. this after michel barnier said the details are cloudy on the question of the irish border, the irish backstop. also saying it's going to be difficult to have a deal put together. he and his negotiators had been working with johnson and his negotiators and presented the council meeting, so they

actually had a deal to count on. cannot get a deal past, what do they do? do they abandon whatever boris johnson has put on the table? do they look at a delay to brexit? the telegraph is reporting johnson may be getting closer to some kind of agreement on that irish backstop with the democratic unionist party. that could be quite a breakthrough. global economics and policy editor, kathleen hays. the white house has confirmed the u.s. will impose sections on turkey for its military incursion into syria. the news coming days after president trump effectively clear the way for the offensive by pulling american forces from the area. our breaking news editor greg sullivan is with us now. we heard from a nguyen as well as mike pence early on speaking at the white house talking about this demand for a cease-fire. is that likely to happen? >> it is unclear at this point. as you said, we saw the white

house move forward on sanctions saturday -- on sanctions today. trumps a fire announcing he was going to raise steel tariffs. if you will remember, president trump previously raised steel tariffs on turkey only to lower them in may and now he is coming it. with what we heardom from president trump before from saying he would destroy turkey's economy. we have to remember that president trump's own decision to stand by as turkey invaded syria is what caused the decision -- the situation in the first place, so it does seem a little too late if the white house goal is to try to bring about a cease-fire in the region. >> exactly. that is what i was going to ask.

what is the white house's goal here? sanctioning a few officials and putting steel tariffs up to what we have seen do anything to pull back. >> some have suggested maybe this is the white house trying to buy time, but lawmakers in congress are very upset over trumps the fire's actions. lawmakers in both parties have been critical of president trump and have threatened sanctions on turkey. lawmakers want to move back and somethingoday, we saw pretty remarkable. we saw house speaker nancy lindseyeam up with graham, a republican and frequent trump defender to suggest they would work on strong, bipartisan sanctions against turkey. pelosi herself suggested they be something more than sanctions was needed, like a resolution to overturn president trump's

decision. we heard senate democrats echoing that saying sanctions alone might not be enough to resolve the situation. this might be a white house play to try to buy more time amidst all of this anger over the situation. >> thanks for that insight. theing us from d.c. with latest on turkey. we have seen market reaction when it comes to turkey. we have seen the lira lunging to the weakest level since may against the dollar and you are taking a look at the turkey etf, showing that it slumped in the last six days almost 9%. that would be the worst six days since march. we have seen the weakness again in those turkish markets. of course, if you are away from a screen, you can always find in-depth analysis and the day's big newsmakers on bloomberg radio, no broadcasting live from our brand-new studio in hong kong.

this is bloomberg. ♪

>> this is "daybreak asia." i'm shery anna new york. haidi: apple is under attack for sending web browsing data including ipo addresses to china's tencent. this is the latest criticism of how the company operates in this crucial market. what exactly happened, and why is the company attracting such criticism? criticizedwere because there is a menu and ios settings relating to their safe browsing technology that could check a url against an existing database of url's, and in china, that is owned by tencent, while elsewhere in the u.s., it is owned by google. startn did this

happening? >> this started happening in 2017, but now it is coming to light because of the issues apple has been facing in china in the last week or two. >> of course, we have seen increasingly businesses caught in the crossfire of these china-u.s. trade tensions. how has this affected apple so far? >> apple has not really seemed to have an impact translating to consumers. you have seen them have that delicate balance of working with u.s. and working with china to work through these issues. it does not seem consumers have been impacted to this point. >> does this kind of exam look five the sensitivity -- since it -- does this kind of exemplify the sensitivities of doing business in china? they have always existed to some extent.

>> it is definitely a sensitive time, not only for apple, but every technology player. it seems like apple has been balancing it better than others. you have seen what has happened with activision, with the nba has been going through in china. clearly apple is not facing the crisis that others have, and that is because of their relationships and the good job they've been doing balancing all the interested parties. , joining us so much from los angeles with the latest on apple. the company another silicon valley giants have been some of the most affected by the trade war, so let's look at how this potential deal could play out. americaus now is a new cyber policy fellow. one of the fronts where we have seen tensions has been with huawei. the u.s. accusing them of some cybersecurity risks. we have seen some temporary licenses for the company, though. how long can we expect this to

continue, and can we see anything in writing when it comes to a trade deal on while way? >> i think the -- i think we have seen that the trade deal we were being promised is potentially not as solid as we saw last week. the nature of a trade deal right now would have to take into account the security of the countries involved, and of course, it would begin to address the fact that while way is certainly a sensitive topic in the united states in terms of infrastructure and internet service provision. splits in the united states and our allies in terms of our policy toward quality. germany a little bit ago decided to continue servicing their internet infrastructure with huawei. that will either create pressure on the united states or get some down.on the way >> i spoke recently to huawei's chief security officer. this is what he had to say. take a listen.

>> we have committed as a global company to spend $2 billion over the next five years to improve our software engineering processes, to eliminate the clutter in our code, to make sure we are more consistent so there will not be as many vulnerabilities that are there and also to make our code more readily adaptable for the new technologies of artificial intelligence coming forward. competitors would value it so it would help make their products more secure as well. as the ongoing trade tensions lead to two internet, three internet sets of regulations and firms unable to operate cross-border? >> i've been talking about the concept of three internets for a period of time now. as regulatory environments split in their requirements and the norms they are trying to preserve, that we will see a ofnese, european, and rest

the world internet. what we are seeing over time is that tension is not just developing but in the united states and china but in those three internets. it tells us how the world is splitting up the regulatory burden of trying to ensure both internet provision and information security. >> we were speaking a couple of minutes ago about the hot water apple is currently in for sharing its information and data with tencent. the concept of multiple internet, multiple levels of information, where does that leave companies that do business, as many do, across borders? >> coming out of the information security industry, as i do, i have grappled with these problems before. when you have to translate multiple regulatory environments into product development, especially in security and technology, hard choices get made. what we often see is you will get companies that focus on a

specific market or product that they find themselves able to specialize in better. sometimes that inns of leaving people who need that security provided to them or that service provided to them in the dust as more gains based choices are made. as companies try to make those decisions, we are going to start seeing them specialize in one of those three areas where they comply with the regulatory framework. gdp was a wake-up call for most american companies in terms of what we need to do to civilly guarantee someone's data had been deleted. we are starting to see new regulatory environments compete over time. if u.s. citizen is in beijing and request their information be deleted in france, what regulatory environment covers that? it is an ongoing an interesting question, and the answer right now is probably somewhere in an aws cloud instance. >> is enough investment being

made to try to future proof for these companies, and if not, what should they be trying to do? atmost companies are bad future proofing regardless of the regulatory environment, but the ones that are paying attention are doing their best to make customer centric or better yet user centric decisions. i think we know at this point that just because you are a user of a company's product does not necessarily mean you are a customer. most of the time, the people buying that data from the company is there actual customers. if companies want to future proof in order to not just protect their prices but reserve their capacity, defend against different regulatory environments, maybe make the choices to defend and protect the consumers, the users, and the people that do not even know you exist before starting to worry about your profits over time and in a quarter far far away. >> in the meantime, are u.s. policymakers correct in worrying about cybersecurity risks and potentially sensitive information being acquired by china, given that we do have the

2017 chinese national intelligence law where chinese firms are compelled to turn over any information they have to if the communist party asks them to? >> there is reason to be concerned there, i think. we understand that we chat, a commonly used app in china for talking and payment systems, built by tencent, is deeply in cooperation with the chinese government. one of the things we know about companies worrying about data being transferred back and forth in the united states government, worrying about data being transferred back and forth is that if you do not necessarily always know who is listening in, you have heisenberg's hacker. if you do know who is listening in, you can start to build some sort of protection against that. but what we are seeing with companies in china that have deliberately week or back toward encryption is once information has been compromised, it

functionally does not exist anymore for the most competent people and technologists on earth. that is what the u.s. government needs to be worrying about, strong encryption, ensuring the rights of the consumer are protected, and making sure that as we have these conversations going forward with our hopefully partners in the european union and china, that we are protecting the rights of people that do not know most internet structure exists. these are the people that use these products, and they are the ones being surveilled. most obvious,e high-profile competitor/ opponent. what other countries should we be paying more attention to? we know there's been with 5g and india, for example. >> 5g is just two orders of magnitude faster than 4g. it is just a car. it gets you there quicker. it does not just help us handle

band with problems in the kind of infrastructure that pops up over time. it also helps reduce the space between you and anyone watching you. india has had an attitude toward encryption and consumer protection that has not been user focused over time. after seeing the data leaks, there's concern that an infrastructure in india that surveillance without protecting could be something that not only harms the people that are relying on those services for privacy and for service provision, but also can provide a poor example for the kind of infrastructure the u.s. should be looking to emulate. we need some examples now, not just competitors. the european union is a better example that the united states should in fact be following. we should be taking care with theconsumers, creating kinds of regulatory frameworks we are seeing, for instance, in california, with ccp a. a simile build 375 was one of

the first steps the u.s. took toward protecting consumers. we worry less about competition if ordinary human beings who have a cell phone in their hands know how to keep themselves safe and are being protected by the environment in which they live. that is the piece that helps us not just reduce competition and friction but also helps us make technology accessible, secure, and private for everyone. >> we have to leave it there, but fascinating conversation. thank you so much for your insight. plenty more to come on "daybreak asia" though. this is bloomberg. ♪

>> this is "daybreak asia." markets are trading at the moment barely in the green. sophie, what are you watching? sophie: japanese stock investors are playing catch-up with nikkei

futures pointing higher, but a weaker tone is being struck ahead of the policy decision and as president moon jae-in faces a policy crisis. the yen looking little changed after a four-day slide and a potential drop. it may be limited with traders looking to the boj's buying of one to 10-year notes. treasury futures applying a drop across seven to 30-year notes when cash trading this tuesday. the recent typhoon written to be the second costliest for the country. we are keep an eye on japanese airlines as well where mystic flights mostly operating normally on monday. more than 800 flights were canceled on sunday. >> thank you. , where joinedr

exclusively from the hong kong exchange by a company founder following its occlusive debut. stay with us. this is bloomberg. ♪

>> a very good morning. >>i am haidi strives more in sydney. bloomberg's from public works. i am shery on. i am from global headquarters , i am shery ahn. out of story this tuesday, not so past, china wants more talks on president trump posner trade deal. send details need to be clear before anything is on. you can government pushes ahead with brexit.

they say there is no chance of age of this week. heat, the the president apologizes after his justice minister resigns. >> let's get straight to the market action. japan has coming online. what are you seeing some are japan back online after a long weekend. what are you seeing? >> japan is back online. the finance minister saying an exit budget may be considered to deal with the aftermath after that three-day break. groundic is also gaining wealthy yen is fairly steady. while the yen is fairly steady. notregular operations are expected to change my today. checking in on soul -- changed by today. >> checking in on seoul.

the korean yuan is holding steady. we are keeping an eye on lg shares, they are up 7/10 of 1%. switching to check in on aussie stocks that are fluctuating this morning after a three-day rise while the aussie dollar is just steady. bonds are slightly higher. let's get the first word news with ritika gupta. >> president trump is imposing sanctions on turkey for his military incursion into northern syria. this statement comes just days after they effectively cleared the way for the offensive by taking u.s. forces out of the area. tariffs are back to 50% on steel. the turkish army claims to have killed hundreds of terrorists

since the persian -- introversion -- since the incursion happened last week. the prime minister of finland says time has run out to reach an agreement before thursday's meeting. the news came as queen elizabeth delivered the -- traditional speech. boris johnson's plans include a general election on his brexit strategy. the barcelona airport -- spain secession arguments burst back to life. 13 sentences triggered an angry response from the top football coach. he is a prominent supporter of catalano independence. independence. the region autonomy was downgraded amid a security

crackdown. there was a ban on more than 2 million prepaid mobile connections and internet services will continue. separatists may use the internet to provoke anti-india protests, calling for independence. global news, 24 hours a day, on air and on tictoc on twitter, heard by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> china seems to be pulling back from president trump. -- president trump's may trade deal -- mini trade deal. steven mnuchin has confirmed there are plans for more negotiations. selina wang is watching this in beijing. whatindow at this point, is the deal both sides are trying to iron out? >> it looks like china wants to

hold more talks before xi agrees to anything. also told usre that china is looking for trump to remove the plan to tariffs in december. it looks like the two are not on the same page on what is going on in this handshake agreement. on the one hand you have trump saying that is one is almost signed away. they can move on to phase two. one is almost signed away. they can move on to phase two. china is becoming increasingly wary of trump. trust has broke down over the past two years. the two sides have been close to a deal only for talks to break down. there is also a view in beijing that for xi, it is politically unfeasible for him to agree to any deal.

let's not forget that the billions of dollars of existing tariffs still remain in place. >> if you're looking for signs as to how the next round of talks could progress, what would be something to look at? >> is certainly is like reading the tea leaves at this point. one data point that investors can look toward is the people's daily rentna's fixing. this could be a sign of good will toward washington to show that china is not manipulating its currency to boost exports. so far, we have not seen that sign. we have seen the daily fixing come in line with what the fixing was on friday. we will be watching very closely on friday to see how that may change the mode. we had steven mnuchin suggest that he is considering removing the designation as china as a currency manipulator if the stage one deal is completed.

we don't have details on the currency agreement that they agreed on but citigroup mentioned it is likely in agreement for china to not devalue its currency. rather than a forced one-way appreciation. i comes to tangible results, it looks like they could base this around currency or intellectual property. off when itry far comes to hammering down structural issues around china's economic and industrial policies. -- we are still very far off when it comes to hammering down structural issues around china's economic and industrial policies. >> the head of research, chris joins us from melbourne. bounde seen this range mode we are getting. there is quite a bit of fatigue around progress or lack of progress or a lack of details with these trade negotiations. what are you looking for that would show you that substantial

progress has been made. chris: we want a firm commitment from the chinese that they will buy the 50 billion of u.s. agricultural progress -- products. that would be an appeasement. both sides believe they have the upper hand. i think that is a significant step. people are not seeing the concessions. they are looking at the progress that they have made. the markets are feeding off that. we do need to get that 50 billion signed through. that would certainly appease trump. the currency pact is something we are watching. this is something we will be watching closely. i think the overriding issue for me is that while we have seen a delay to the tariffs that should be kicking off on the

15th, it does not change the economic dynamics. that is the? hanging over the world economy. what is happening with the global economy? the repricing of the markets. at the tradeoking situation but this does not change the dynamics of the global economy. that is what we are watching in the data. >> one of the few tangible indicators that we can look to as to where they -- where the trade negotiations go and what china does, it depends on what the chinese are willing to hand over. the markets are split about what happens to that -- to the yu an. will they try to take a higher -- it higher? chris: we have had every to see this.

that is interesting. there has been a slight divergence between dollar cna and some of the china proxies. we have a big level down. willnk if that race, we get some momentum traders coming back in. that will push the dollar down. right now we're looking at some fairly messy price action. we have been feeding off that fixing today. that is going to be addictively stable. it is coming in line with analyst expectations. i think the big issue if you are trading is where we get the treasury report. we are highly likely to see china dam removed as a currency manipulator from that situation as well. >> that happens and we get this many de -- mini deal signed. how will markets take that? if we take a step back

and look at the mandate of the fed and what they are saying at the moment, they want to keep the u.s. economy running hot. they want to get this economic expansion going. i don't think they have seen enough here to stop them cutting rates going forward. this is a positive. it is very similar to brexit. there is so much political goodwill behind this at the moment. thatarkets have set off but the global economy still has a? . tariffs are still going up. i think there is ultimately still a lot of question marks. the fed wants to keep the economic expansion going. if you look at the repricing of , we have come from around 85%. we are currently sitting around 60 6% chance. despite the steepening of the -- sitting around a

66% chance. despite the steepening of the curve, 3/10. he will have a good chance to guide us. if 66% is too high, he will bring us down to low 50 percent. we will probably get a rate cut. the fed wants to keep this economy >> red-hot. you have more fed support and political goodwill. what are the chances that the markets are too bearish? --the fed wants to keep >> the fed wants to keep this economy red-hot. >> you have more fed support and political goodwill. what are the chances that the markets are two bearers? chris: leverage in the market has come down. positioning is much more acute at the moment. come down to a much more mutual level.

down to a muchme more visual level. things are positive i had of where we will be focusing. the dichotomy in the divergence you are seeing is an economy that is looking ok. there are parts that are concerning. the manufacturing. some signs of optimism coming through in the economy. there are housing metrics that are looking ok. unemployment seems to be in a good spot at the moment. inflation expectations are in a good spot in the u.s. at the moment. just below 2% on the inflation swap. you have the fed that wants to push that. if we got good earnings, this market could go high. we had that goldilocks scenario. the unfortunate situation is we need to see the economic justifying a repricing of the price markets. what we have been seeing is a more loose anticipation of

central back -- central bank using. now we're getting to a point --re so many of these right vis cuts are being priced at. beingthese rate cuts are priced out. i think economics really need to boost up there. >> thank you so much for that. that was pepper stone's chris weston. we will get his opinion as brexit enters a critical opinion. >> china is declining further. more on that with hsbc later this hour. this is bloomberg. ♪

>> this is daybreak asia. i am shery ahn in new york. >> japan is back online after

the long weekend. >> we are seeing stocks rise. they are working to repair barriers. they are climbing the most in 18 weeks. asstruction adding as much 3% earlier. the full scope of the typhoon damage remains to be seen. a quick check on east japan railway this morning. we are seeing the stock under pressure. city analysts say it is uncertain whether the bastad t ise -- the rolling stock affected. tokio marine is slightly under pressure. the insurance industry in japan claims of $5 billion.

>> the eu is warning that the two sides are still a lot of way apart. headlines in the past few hours have been a little more positive. indicating that last-minute compromises have been made. let's return to melbourne. stone's e's -- pepper chris is still with us.we could see a 2% plus appreciation. the eu is continuing. where do you put the pound? i do see upside risks. i will venture out and say that -- this is north of 17%. it is in the 95th percentile.

that is something we need to contend with. that is a position consideration. if you're going to be dabbling in those waters as a speculator, you need to do so on a very small size. i think the market is like what we saw from the trade negotiations. it is feeding off the idea that boris johnson is seemingly for a deal now. that is a u-turn. it seems they are very much for a deal. >> consensus seems to be that we will see progress over the next day. maybe even the next week or so. progress on the backstop issue. this is really a story that has quite often strayed off script. chris: i have lost sound. >> i does want to check that you still have us. just want to check that

you still have us. we have some audio issues with chris. politicalmoon's scandal takes a hit. we will look at the latest of people in south korean politics. this is bloomberg. ♪

>> this is daybreak asia. i am shery ahn in new york. ney. am haidi in syd the world's number three gold producer is showing andrew 35 nine dollars in expansion plans. work -- $835 million in expansion plans. are forecasting to have

output of 830 ounces per year. this is amid allegations of money laundering by the former owner. j w steele appealed to the company court, seeking future powertion after bhushan was named in an alleged accounting fraud. this is a blow to the government efforts to deal with baghdad. >> saudi aramco says production of facilities is back to normal. this is just months after the attack. billion --most 10 they are producing almost 10 million barrels per day. the aramco attack inflamed tensions in the gulf with iran being blamed.

tehran denies any involvement. >> overton south korea, president moon jae-in has made a public apology after his close doubtedt -- confidant to pressure and resigned just days into the job. the minister was facing a range of inquiries. what was the last straw? >> the last row was not actually part of the prosecution investigation. it was the public polls that came out earlier this week. closestd probably the indifference in approval ratings between moon's party, the democratic party and his main opposition party. they had quite a big gap after the former president was impeached. with his appointment, despite opposition, the two rival parties showed less than 1%

difference. that brought them to their realization about how they had been going against the public sentiment. they paid closer attention to what the people in protests were saying. implications of the future of the moon administration? >> the implications are that was known for, what his vision for his administration was transparency. he wanted to reflect a democratic process. this fight opposition, he still went ahead with an appointment for the justice minister. many analysts are saying that moon's reputation is tarnished in terms of being transparent

and communicative with certain criticism. even if he does not want to hear it. their administration is facing tons of challenges. what are we seeing on the economic side of things? we see unemployment rates pretty high. export numbers are not looking great. there are all of these external factors including high unemployment rates as well as withngoing trade suits japan. north korean and south korean relations are not looking great. the trade war is above the korean peninsula, it is impacting the economy as well. especially in terms of what is going back to the justice minister, a lot of students that had studied despite a very competitive environment, there were also very outraged at the justiceons that the

minister faces because part of his allegations were that he abuses power. to help hiss power children get into universities. this not only outraged the elderly conservative faction in south korea but also it hit home for many millennial south koreans as well. >> thank you so much for that update on the moon administration. we have an alert on the pelosi has- nancy said that they will proceed -- she says that the presidential sanctions on turkey fall very short. they are coming out with more sanctions against turkey's turkish defense energy. the u.s. is raising fuel tariffs on turkey back to 50%. haidi? haidi: people we have spoken to have suggested these sanctions are on the conservative side. they do not go far enough to get the outright cease-fire that the

trump administration is asking for. we are hearing from nancy pelosi, saying this is a pattern of action. the sanctions will be taking place. this is bloomberg. ♪ from the couldn't be prouders

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>> you are watching "daybreak: asia." the minutes of the rba meeting. saw as a meeting where we one third rate cut from the reserve bank of australia, a record low of .70 5%. the rba reiterating it's prepared to ease further if only a limitedng borrowing,sehold saying that close monitoring of household borrowing risk is warranted. australian households seeing

record amounts of debt. reserve bank of australia saying the recent run of data on balance has been on the softer side. hers get some reaction from guest in melbourne. sorry we lost you earlier. not a great deal that we know from the rba minutes but we know we are likely to see further easing from the rba. are they -- what more can they , with limits to conventional monetary policy when real rate what else can they do that will effective? >>? it's about effectively , what weg base money

know is quantitative easing. the assets react, pricing , we'reannouncement seeing the australian dollar react pretty aggressively on a trade-weighted basis. is something that strategists are talking about. the rba having wider discussions with commercial bankers here and what it could -- the negative feedback loop behind that situation. if they go down in unconventional move -- money policy route, that needs to be offset by some regulation. don't want to create a red-hot market again. at the same time you have to ask the question with the households in australia so indebted, are we going to see a massive spike in credit this time around? if you look at that you're going

to see the base money affect kicking in with the much weaker australian dollar on a trade-weighted basis and the aussie will be the place to do it when it becomes -- on the market side. they are now touting full puts this, which thursday's employment number is something that could be a volatility event. we have been asking this question for some time, at what level do we get such diminishing returns from the cash rate that we need to start thinking about other aspects of monetary policy to support the inflation expectations in the market. i think that discussion is one to be had now. alreadyhe markets pricing the situation in? >> i don't necessarily think they are at the moment. doomsdayant to be that

spokesman, until we see the rest of the world showing a bigger deterioration in the economics, which is one thing they are looking at. similar to a number of central banks, they see a gentle turning point in the domestic market and that is a worrying view on what is happening in australia. if we do see a stronger economic downturn in global markets, then of course that will bring them to more than unconventional policy. at the moment, that is not happening and that is probably why we won't get a cut in the october meeting and will probably get the next rate cut coming through in november. heidi: to question is whether they can rest easier if we get some sort of trade deal between the u.s. and china. we have to leave it there.

let's see if we are seeing a market reaction to the rba minutes. sophie: as chris just noted, we are seeing so much of an aggressive reaction in the aussie dollar, just up by about .10%. aussie shares have eased their advance, little changed after a three day game. check out japan, outpacing the region as markets reopened. the nikkei to 25 adding 1.3% and the topix moving higher with appliance makers leading gains. the topix index rising the most in six weeks. let's check in on bonds this and kiwi notes nudging higher. 10 year treasuries on the move as well as the 10 year yield is off by about three basis points this morning. goale commodity space,

trading steady, oil extending declines holding the recent lows tradethe biggest drop on optimism. heidi: let's get the first word headlines. china is hesitating over president trump's partial trade deal, seymore talks are needed before any signing can go ahead. sources in beijing say the vice premier may lead it deli nation -- delegation to lead out -- to work out more details. china also wants the u.s. to abandon planned tariff hikes in december. protests in hong kong may have taken a dramatic turn, saying a homemade bomb was detonated near patrol car on sunday. the bomb disposal team said the device was set off about 10 meters from a police car. no one was hurt in the explosion the police eight is clear intention was to kill or

seriously injure officers nearby. police say the bomb required certain chemicals. the defect of central bank lowering -- de facto central bank saying the buffer will come down from 2.5% to 2% immediately . signalingicators are the economy has deteriorated significantly since the protests began in june. retail inflation in india climbed to its highest level in more than a year, posing a challenge to the rbis same of maintaining an easing policy. consumer prices rose below -- below 4%, higher than the median estimate in a bloomberg survey and faster than revised figure for august. tomato and onion crops were damaged by the monsoon.

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. this is bloomberg. lots more coming up, including looking at what to expect from china's inflation numbers due out later today andr dismal trade numbers gdp expected later this week. if you are away from the screen, you can always find in-depth analysis on bloomberg radio, now broadcasting live from our brand-new hong kong studio. this is bloomberg. ♪

heidi: this is "daybreak: asia." we are awaiting more eco-data out of china.

consumer price inflation is expected to have hovered in august around 2.8%. outward pressure may persist in the coming months as port prices continue to lift food inflation. is economist julio wang. way too happy you with us. given that the pboc is trying to lower, will we be able to look through the surging port prices? >> the port price this year has been sharp. supplies down 30% year-over-year. in august alone, port prices rose even in the retail market. how the african swine fever impacted supplies this year. we are beginning to see some sign of the supply stabilizing and imports probably will pick

up in the margins over the next couple of months which will help a little bit. fundamentally, even if you step away from the food price inflation cycle, core inflation is at 1.5%, which is probably the slowest in over three years. i think that suggests the underlying state of demand is still pretty sluggish. you don't have to look very far to see other signs of even bigger disinflation or deflationary pressure in the economy. on balance it seems to us that the demand side, which is represented by core inflation, and the broader manufacturing sector warrants more tension at this point. so the pboc should not feel too constrained in terms of the inflation perspective. heidi: to your point, this chart on the bloomberg shows both the , just inollar terms dollar terms dropping 8.5% in september. nine out of 10 months where this

has been in contraction. how problematic is it for china to try to shore this up, and when can we expect some of those measures that have already been taken to actually filter through the economy? shock isk the demand from the external side. even if you look at the trade numbers yesterday, the big drop in import growth, a lot of that is driven by a really big construction and processing imports, which are supply chain related. they are suggesting the broader tariff dispute and trade war are putting pressure on the manufacturing sector. being down almost 20% is putting a big drag on import roles. if you look at the investment side of the economy, that would also suggest the biggest shock this year is from the external

side. i think that has been the biggest drag. on the domestic side we are seeing fairly sluggish infrastructure investment. we expect that to normalize over the next couple of months because some of the infrastructure investment should normalize toward the end of the year and more into 2020. i think that will be providing some support for the import numbers, but the biggest drag has really been the supply chain disruption and the tariffs. heidi: i'm wondering if there is more that can be done on the domestics and it -- stimulus side. i just want to throw up this chart, looking at the china credit growth story, it has been steady as she goes. a slow buildup. do you expect a more aggressive leveraging up if things continue the fact that were

not see much improvement, is there a transmission issue? >> i think it is primarily a matter of policy makers probably taking a more cautious stance at this point. if you look at the state of inflation or even the state of deflation on the industrial sector, if you look at the sluggish state of the investment it probably would have already prompted policymakers to do more easing. this time around were seeing a doing morepproach, reform at the same time. it's a lot more of a balanced approach. i think the stimulus you are seeing upfront is that the credit numbers are not really that meaningful. and slowing growth toward the end of the year and into the first half of next year, the

fact that the stimulus is coming through in such a modest and gradual fashion, we think there is a slight reset policy makers may have to just step up the policy easing a little bit maybe toward the end of the year, but a lot of that also depends on how the external scenario involves, if there is more external demand, it will cause the policymakers to step up a little bit more. heidi: always great to have your thoughts, julia wang, looking at the credit numbers and the numbers expected out of china today. staying with china, a liquor come out witht to numbers today. chinese consumers remain resilient despite the trade war and the domestic slow down.

>> the demand just keeps roaring ahead despite the economic slowdown. part of it is that the company has done such a good job of managing distribution of this liquor to keep demand high. they have maintained that luxury position and made this brand, given it a very strong pool, and part by limiting the availability of it. they opened the first costco in china in shanghai last month. they used bottles of this to attract customers. basically a price to that 1500 you want, comparing with the open market price of about 2500 you on. they sold out in a matter of minutes with huge lines around the store. the demand for this is just roaring ahead and it points to good earnings for the company as well. what do we know about the company's new strategy to focus

on the premium brands? >> about a year ago they had a pretty weak quarter. that's a reason the earnings are expected to look good. they decided to shake up their distribution system. they cut about 400 of their 3000 distributors and narrowed their focus on to the premium brand, as you mentioned. this has allowed them to focus on marketing that as a luxury, high-margin product. spectacular, are higher than 70% quarterly margins for this product, so they are doing very well with that. further ahead, if you look out beyond this coming quarter into the following quarter, it does show that they have to find some way to diversify. they have done very well with this premium brand but it raises the question of how they can continue to grow at this rate. as you mentioned, the stock has doubled, but where can it go from here? how can they push this level

higher? where are they going to find growth without trying new brands and new lines of business? thank you very much for that. don't forget our interactive tv function, you can watch us live and catch up on past interviews as well as dive into any of the functions that we talk about. conversationf the as well by sending us instant messages during the show. it's for bloomberg subscribers only. check it out. this is bloomberg. ♪

heidi: this is "daybreak: asia." check let's get a quick of the latest business flash headlines. apple is under fire for sending browsing data including ip addresses to tencent. the foreign company struggles with how to work with china. permission is sent as part of an iphone and ipad security feature. it warns users if a website is malicious or unsafe.

apple checks addresses against the link -- a list of sites known to be problematic. heidi: uber has fired 350 more employees and what it says is the latest wave of cuts. it affects several visions including self driving car development and food deliveries. investors are concerned about rising losses and slowing growth. the company lost more than $5 billion in the second quarter along. one indian outfit is close to securing $2 billion in financing. we are told it will be split equally between equity and debt. stages.e in the final could pass fellow startups

in valuation. the imf and world bank kick off their annual meetings and new leaders of both organizations have expressed concern over the global outlook. what are the key concerns on the horizon? sophie: despite central banks that are acting pass, the global outlook remains uncertain. global trade, after 18 months of friction, the u.s. and china are to have reached initial agreement last week, but china wants further talks. then there is a delays in manufacturing. global activity has contracted for five straight months. intentions wrapping up -- ramping up on the political front. in hong kong, protests continue and companies including argentina and lebanon face debt crises. then there is a squeeze on central banks which have little ammunition left for monetary easing. the imf is among those urging

governments to loosen budgets, stimulusries wanting growth are holding back. heidi: kathleen hays is here. you are headed to the imf meetings in d.c.. downgradeen the imf global growth forecast some he time since last year. is that going to top the agenda this time? areleen: the meetings getting underway now. the updated economic outlook for the international , which the new head of the imf told us last week is likely to be downgraded again will be released. it will be the fourth downgrade since october, as you implied. my -- ing to look into my interview at asia. libraryo the bloomberg

with me, or let me give you a second here to get this chart that i want to take a look at now. that, china, japan, singapore and south korea, every forle line, their pmi manufacturing is below 50. this is how hard the trade war has been hitting and i will speak with some of the key asian economists at the imf to find out there view broadly for the region and for some of the individual countries that have been hit by the trade war. heidi: who will you be sitting down and speaking with? bankeen: the head of the for international settlement. they meet with central bank governors every six weeks. of theelf was the head central bank of mexico. i want to get his view of how the risk has shifted. is it a dark cloud that will push everyone toward recession?

is thedominguez philippines treasury secretary. a domestically demand driven economy. it will be interesting to hear what he has to say about all of this as well. a lot of others falling into place and we will share that with you over the next couple of days. heidi: very much looking forward to those conversations. toore we handed over bloomberg markets: asia, let's look at how asian markets are trading so far this tuesday morning. the nikkei 225 leading the gains across the region, japanese traders play catch up after the long weekend. little bit of boy and's after the announcements that the government may be providing extra measures to support reconstruction after the typhoon. the cost be looking flat ahead

of that rate decision later this week and austria treading water after the rba meeting suggesting potentially more easing could be on the way. shery: and we're seeing some upside for u.s. futures after wall street finished in the red. we expect those earnings from big banks coming up this week so we will keep a close eye on that. chinese stocks and the one rising after signs of progress in trade talks. we will see how they openness china starts trading. our markets coverage continues as we look ahead to the start of trade in hong kong, shanghai, and shenzhen. heidi: standby for bloomberg markets, china open. this is bloomberg. ♪

>> it is not :00 a.m.. welcome to bloomberg china markets open. let's get your top stories. china wants more talks than president trump's many trade deal saying details need to be clear before anything assigned. >> the trump administration called on turkey for an immediate cease-fire in syria as it confirmed things on three senior officials. >> is hong kong under a de facto curfew? we will have the latest on the protests at the subway system effectively shuts the city early.