♪ i'm haiti stroud-watts in sydney, good morning, one hour for market opens in japan and south korea. shery: good evening from bloomberg global headquarters in new york. i'm shery ahn. welcome to daybreak asia. ♪ our top stories this thursday, president trump welcomes increased buying from china, but words -- but warns a trade deal is likely before the apec summit. ♪ eu leaders had to brussels as hope for a brexit breakthrough

fades. ♪ questioning bys hong kong lawmakers one day after her policy addresses drowned out by rowdy opponents. ♪ haidi: australian markets coming on in staggered opening, expecting a muted start to the trading day after markets hit highest levels we saw in about seven weeks, gaining 1.3% in the previous day's session, arraigned -- a little more restraint start today. the wind is taken out of their sales in a rally with a weakened expected sales report and a mixed bag of earnings as uncertainty over brexit and trade and geopolitics are back on the table. new zealand down about 3/10 of 1%, nikkei futures flat at the hit theirter japan 2019 high yesterday, yen weakness a part of the driver for optimism, cost be futures up to tenths of 1% as we get the

delayed open in that market as well. australian dollar trading software, 5755, we are waiting in just about an hour for jobs numbers out of australia as well, which will really indicate what the next move would be. with get you caught up first word news with rithika -- ritika: three catalonia,shes in the spanish prime minister valls to stand firm, protesters demanding the release of separatist leaders jailed for last year's independence referendum. authorities are said to be considering moving the venue between -- venue in the football between football match barcelona and madrid. a call for stronger oversight to ease threats to a shaky expansion. the fund's latest global

stability report says easier financial conditions have supported economic growth but also encouraged more risk-taking. it says threats to growth remain skewed to the downside. we will be live at the annual imf world bank meetings tomorrow in washington. guests include the asian development bank president and the central bank governor. european central bank policymakers are calling on governments and the institution itself to consider a change of strategy after years of stimulus and fiscal restraint left the euro zone stock with weak growth and inflation. the calls come one week before mario draghi holds the final news conference of his eight-year term. they range from greater public spending to a review of debt and deficit. volvo rolling out at's latest electric car, saying there will be a new model every year from now until 2025. the new crossover leads the way, with volvo and its parent

convinced battery-powered cars are the future, especially in china. the volvo ceo admits profit margins for electric vehicles are currently low, but expects them to improve as demand rises. >> it will be a very low volume. you have to understand that the cost level will be higher, so it might be a lower profit margin initially. is wethink what will come ev car with higher value for consumer. and long-term, it is the right thing to do. ritika: we will have more highlights from that interview, including opportunities in china later in the hour. global news 24 hours a day and on tick tock and twitter powered by more than 2700 journalists

and analysts in more than 120 countries. this is bloomberg. ♪ haidi: president trump says a trade deal won't be signed until he meets his opposite number at the apex trade deal next month. he says china has already started buying more u.s. farm produce. selina wang has the latest. president'she comments change anything? we are seeing reaction from the chinese embassy in the u.s., saying a breach of the vienna convention in terms of these changes regarding chinese diplomats operating in the u.s. adds to the picture of other tensions that complicate the trade negotiations. it comes to trump's most recent response, we reported they were most likely going to be signing the deal at the apec summit in chile next month. rep reiterated the fact china has started agricultural purchases. the factreiterated

china has started agricultural purchases, around 20 billion -- 20 million tons of soybean and tons of pork, but when it comes to the u.s. claim china is going to purchase as much as 50 billion dollars worth of agricultural products as part of phase one of this trade at negotiation, that is more complicated than it seems area our sources are telling us china says it is not feasible to purchase that much in goods, as long as the u.s. doesn't role back existing tariffs. the issue is that china, as part of retaliation, has imposed tariffs on u.s. agricultural products, so it is quite a burden for chinese firms to purchase that much in goods, and they don't want to roll those tariffs back if the u.s. doesn't rollback their tariffs. so the picture in terms of beijing's position is more complicated than what d.c. as provided it as. we heard the chinese response to the u.s. house bill passed over hong kong, they said

they would retaliate. do we have any more idea of what they could do? right, we heard strong rhetoric out of china after the house passed the bill, but the rhetoric is similar to what we have heard in past instances of u.s. action, host recently the putting of chinese companies on the blacklist in terms of asking china to stop stop meddlingo in what they say are internal affairs. we have heard china is going to keep trade talks separate from the hong kong issue. the legislation doesn't actually change hong kong's status as a special trading zone. academics have noted that as long as hong kong remains in their status as a special trading area, any retaliation from china is going to have limited impact. so it is unlikely this is going to affect the probability of a deal being signed month, at least in this partial, phase one deal. that being said, it certainly does dampen the sentiment i head

of this round of trade talks i ahead -- ahead of this round of trade talks in chile. votes in theugh house to override a veto and there is no significant opposition in the senate. shery: shery: selina wang -- shery: selina wang, china correspondent, thank you. later we will have the view from both sides of the aisle. don't miss those interviews. we also have the bank of england governor, mark carney, speaking at an event. he is saying negative rates have not hurt bank profits in europe, saying he doesn't see negative toolkit part of the boe eerie he is speaking at this harvard event right now.

-- boe toolkit. he is speaking at this harvard event right now. it seems both the e.u. and u.k. are playing down the potential for a deal. john: i'm looking at the latest headlines and that is the way it is looking at the moment. it looks as though it is on a knife edge. as though the unionists have an effective veto and are not convinced. so yes, it looks as though a deal is still not any kind of a given, and it is a very difficult situation for the bank of england, but not unlike the situation jay powell had with donald trump over the possibility of escalating tariffs earlier this year. brexit, and no-deal we know what the bank of england has said about potential damage done by a no-deal brexit, the

bank of england really has no choice but to ease policy as much as it possibly can. shery: and governor carney says fed chair powell would never about to political pressure. get a dealn't between the u.k. and eu, what is next? do we have a brexit delay? what happens in parliament? both sidese moment are behaving in classic british manner and saying no, after you, i insist. the likelihood is that we will have a deal that might be agreed in principle by the eu heads of state over the next two days at subject tot, parliament then agreeing to it in their special session on saturday. is the sequence of events. it is highly unlikely that there

is anything that they are discussing at this point that the eu would have a problem with. what is possible is that the eu might deliberately add pressure on the parliament by saying, we are agreeing to this in principle, but we are not giving you an extension if you are not ok with this, i.e., this is your deal or it is a no-deal exit. shery: what can we expect the boe to do? mark carney insists going subzero is not in the toolkit to see, but we continue economic pressure in the u.k.. phrase classic british from a courtroom sex scandal about 50 years ago, he would say, any central banker has to deny that they would be going to negative rates. i'm sure he wants to avoid that, given the evidence on negative rates is not looking healthy at

the present, and whether it can work. somehow stimulus will be needed tide the u.k. economy through. they will certainly need a lot of liquidity because the rims -- because the risk impact, it is possible there will be a no-deal exit october 31 and that would be very dangerous. we continue to, see volatility in sterling playing out. john, thank you. stella had come a president trump defends his decision to pull u.s. forces from syria as russia moves in to fill the void. tensions in the white house boil over. ♪ haidi: cracks are starting to emerge in the mighty u.s. consumer. we talked to michelle snyder. this is bloomberg. ♪

♪ >> the consumers are driving the

economy. >> consumer sentiment. >> the consumer continues to underpin this economy. >> the healthy consumer with low unemployment rate, good wage growth. >> healthy markets. >> the consumer is alive and kicking. >> as long as the consumer remains strong. >> as long as the consumer holds. >> the u.s. can pull through the economic cycle. here, consumer gets hit >> you are putting a strain on the economy. >> that is when the market is going to have a problem. ♪ shery: some of our guests on the strength of the consumer after u.s. retail sales unexpectedly dropped last month, the first decline in seven months, suggesting cracks may be starting to emerge in consumer strength as a main pillar of economic growth, potentially bolstering the case for a third straight fed rate cut. joining us is michelle snyder, joi -- director of research at

market gauge.com. what does this mean for the markets? if the consumer in the u.s. is faltering, you could get more rate cuts. would that be more supportive of the markets or could we just see fear? michelle: the immediate reaction was that the retail space rallied today on the expectation that bad news is good news, and that will inspire the fed to lower more. but there is the factor of tariffs, which is what they are saying was a main reason for the fact consumers may be tapering off on spending. so it is not a simple answer, especially as we get into a througheriod thanksgiving. we may see more evidence of what consumers are going to do longer-term after we go through thanksgiving sales. if they are weaker than people would expect.

but as far as the actual impact on the overall economy, the whole retailbrick and mortar har pressure for quite some time. so most consumer spending has been through e-commerce. i'm not really surprised to find out at this time fear could be setting in. housing data seems strong, homebuilder sentiment rising for the fourth straight month. is that a factor you could play into? michelle: well, the homebuilder sector right now also is relatively strong based on the lower interest rates and the idea interest rates could go lower. but i would not necessarily consider that a barometer of the economy, as much as some of the -- such as the russell two thousand, small caps, transportation sector, retail sector, which is what we define is inside the market. that is where you can see what is under the hood, so to speak.

about thehelle, what future of the u.s. dollar? this chart looks at the greenback falling below the 100 day moving average for the first time since july. it is interesting, we have yet to see fourth quarter strength typical for the u.s. dollar to emerge yet. it is -- is it moving on expectations we will get that insurance cut from the fed at the end of the month? michelle: it is partly that. also because of positive outlook , a spill overy into emerging markets, the euro rising. and also i know that from a political standpoint there has been a lot of football in terms of the dollar, and the desire by the administration for a weaker dollar. all of that is in play, but as you said, yes, today was a very important day for the dollar because it broke down underneath a major moving average for the first time in some time. of it will be a question whether there will be follow-through, but i believe is

the dollar falls and rates fall, we have other situations that could possibly emerge. it seems like we saw u.s. investors going back to basics, back to fundamentals, looking out earnings, looking at companies and their inherent health, but it does feel like going forward, distraction and noise of brexit and trade headlines may be too much for investors to nor. and we haves, definitely been in a very unusual environment when it comes to social media, because twitter has moved the markets 300 points up and down in a matter of seconds. so what is interesting right now is, going back to fundamentals is actually probably the smart thing and trying to eliminate noise as much as possible, which is essentially what we have been doing, really looking at the market, the inside of the market , and what has been interesting is that the whole market has been in a giant trading range.

if you look at the s&p 500 and look at the etf's, it has been trading pretty much within a $50 to $20 range for months. so a lotot of -- and of the volatility that happens and that -- that happens in that range is because of all the headlines. if you look at longer-term charts, the momentum on the weekly charts and the overall market has waned, not on the daily charts but on the weekly charts. -- you would have to see such a big move to the -- may be aaybe i rally that you would have to see that weekly chart from waiting to getting stronger. seeyou would also have to what i call the inside of the market catching up. today we have good movement out of the transportation secretary, a rally, and so did retail. that is a good sign and a trend

that has to continue in order to get convinced that we will andive all these headlines these constant moves up and down based on tariff talks, what is going on geopolitically with the middle east, etc. michelle schnider, director of trading research and education at marketgauge.com. coming up, netflix soaring and extending trade -- extended trade after good news for investors in an earnings report. we break down the numbers. this is bloomberg. ♪

♪ shery: this is daybreak asia. i'm shery ahn in new york. haidi: i'm haiti stroud-watts in sydney. a check of business flash headlines.

while way revenues jumped 24% in the first nine months of the uawei-- fall way -- while jumped 24% in the fervent not -- in the first nine months of the year, total revenue 86 billion dollars. china's leading retailer has defied the trade war as well, posting strong third-quarter numbers. rose 55% in september from a year ago, while demand for other labels at ant a jumped as much a 25%. infusion from red hat fails to compensate for continuing declines elsewhere, total income for september was $18 billion, down almost 4% from one year earlier. ,nalysts forecast $18.2 billion

and it marks the second straight quarter of shrinking sales at ibm. shery: netflix surges 11% after trading after overseas subscriber growth. investors shrug off a gloomy forecast. su keenan has the story. is this a relief rally? su: it would seem so, numbers but good, but not great, certainly eased concerns investors have. let's go into the bloomberg. overseas subscription growth saved the day, offsetting weaker u.s. growth. earnings did not beat estimates, and while u.s. subscriber numbers underwhelmed expectedan-expected -- international additions which came at 6.3%, 6.3 million, that saved the day, making up for that smaller gain. after hours the stock was up as much as 11%, showing

shareholders were shrugging off the week forecast for fourth quarter. it will continue to grow nicely in the long-term is what netflix is saying, revenue 31% to 5.2 4 billion, shy of the estimate, but profit rose to $147 a share, beating estimates. the big actor chart -- the big hart, down 20% from mid july high, really disappointed on subscriber growth, that is why there was such a focus on that in this quarter. they also warned of headwinds, ,ig competition down the road although in the international market, which accounted for almost all of their growth, they did have a very strong season thata spanish series boosted interest in latin america and europe, so again, that underscored the strength at least for now, in this latest report. addressed the new

competition, disney plus and apple tv plus streaming services. what did they say? su: they say they will continue to dominate, and they sound fairly confident although investors do have questions. let's go back into the bloomberg, because it is not just subscriber growth, it is the readthrough which the burning cash, "stranger things" one of the original series on netflix continues to burn through a lot of klatt -- a lot of cash, as you can see here. in terms of competition, netflix says outright they are going to maintain this streaming crown. but you not only have apple tv and disney plus, you have warner media, hbo max, the peacock from nbc set to launch in the spring. netflix notes they have good catalogs, but says they do not have the variety and diversity. stay tuned they believe they will deliver. thank you.eenan,

coming up next, volvo is rolling out its latest electric car as it looks to drive growth in china. the ceo tells us why he sees battery-powered vehicles leading the way in the world's largest auto market. this is bloomberg. ♪

haidi: this is daybreak asia. the rift between president trump and congress towards turkey and syria is widening. lawmakers criticized the president while he dug in his heels. >> why are we protecting serious land? assad is not a friend of ours. syria also has a relationship with the kurds. they are no angels, ok? there aren't too many around. shery: president trump speaking at the white house there. let's get over tour washington

correspondent. what is behind this latest tension? he is not standing down. >> that's right. tensions between lawmakers and the president reached a boiling point today. overwhelmingly to review president trump over his decision to remove troops from syria. erdoganowed president of turkey to move-in to syria. a lot of house lawmakers from both parties really took offense at this move. they see the u.s. as abandoning their kurdish allies. vote.ook this big we heard president trump defending his move amid this file -- vote. trump said that he doesn't want to be over there. he doesn't see it as a u.s. problem. he's happy to let russia and turkey and syria fight it out themselves. even later in the day, lawmakers, congressional leaders

including nancy pelosi and chuck schumer, were scheduled for a meeting on the issue of syria and turkey at the white house. it turned into a fight between them and president trump. democrats left after he insulted nancy pelosi. shery: president trump has promised some big sanctions on turkey. so far, we haven't seen them. we have seen a few sanctions on turkey officials. do we know what else could be coming? >> we know little bit. mnuchintoday, steven did hint that there could be other ministers in turkey sanctioned. he said, it would be a good guess to think that others could be coming. the white house has said they are willing to do big sanctions to target turkey's economy. we heard that from president trump himself. democrats and other lawmakers say those sanctions are strong

enough -- aren't strong enough. just moments ago, house lawmakers released a bipartisan text of sanctions. with bipartisan support, it could override a veto. those sanctions could be significantly stronger than what we would see out of the trump administration. haidi: pompeo and pence are flying separately to meet with president carter one on thursday. onpresident erdogan thursday. is that possible -- plausible? >> we can't rule on anything. the turkish president has been wanting to do this for a while now. president trump has said he has requested the ability to go into syria. the u.s. has blocked that ability up until now. dispatchedrump has mike pence and mike pompeo to try to broker some sort of

cease-fire. it's possible that after erdogan golds, asmall cease-fire could be within reach. it is unclear whether president trump is engaged in seeking a cease-fire. he doesn't seem to care what happening over there. weight ofar how much the president is behind this move and how much is just to try to hold off lawmakers who are incensed over the situation right now. shery: we appreciate your time. let's get the first word news now. trade ares offering a matthias that may survive the rising tensions over the hong kong bills on capitol hill. days after president trump announced the two sides had agreed to stage one of the deal, beijing is packing to tattle -- tackle a key issue for the u.s..

the premier also says his government would ensure equal treatment of foreign companies in china. >> it's great for our country. it's great for china, too. it is something that started taking effect even though this deal will be signed probably until we meet with president she -- xi in chile. it's a sign that consumers are becoming less confident about being the main pillar of growth and bolstering the case for a third straight rate cut. overall sales fell 3/10 of 1% in september from the prior month after a revised increase in august. european union leaders gathered in brussels as negotiations continue on a potential new brexit deal. , key issuesmism remain including the irish border and the status of northern ireland after the split. johnson's irish allies dismissed

as nonsense claims that the party would drop its opposition to the latest plan. the 737 max investigation has taken a dramatic turn. indications that some evidence main. -- may not be what it claims. an airline employee gave the inquiry photos that claimed to show a crucial repair had been done the day before the disaster. the time displayed in a copy photosr suggests the were taken before the work was carried out. local news 20 for hours a day on air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: thank you. volvo is rolling out its latest electric car in says there will be a new model every year from now until 2025. the new crossover leads the way with full the -- volvo,

convinced battery-powered cars are the future in china. we spoke with the ceo about the fallout from beijing bringing in support for electric vehicles. >> subsidies have gone down. it's always helpful with government supporting new technologies. on the other hand, we really believe it's electric cars that will fly long-term. it has to be sold to customers were ready to pay for it. it has to be in attractive -- an attractive product. otherwise subsidies will not help the climate. that is why we are so sure about that. if we want them to participate in a better climate, we need to create attractive products on the free market. haidi: as you move beyond those subsidies, you will want to get to volume. is china the market for you? will there be mass processes -- purchases? here in the west

coast of u.s., it's a very big market for electric cars. also in europe, there's an appetite for electric cars. so far, the interest in china has been based on incentives. also the chinese market will pick up and see the beauty of an electric car. it's also based on that you have some who have to charge the car overnight. it's difficult if you park a car on a street in the big city. those customers will be the last ones going electric. shery: we have seen many in this space pullback on the more experimental and. -- and. -- end. many have pulled out a little bit and not done so well. how can you do differently that ensures your success? >> first, you have to realize it's not easy to start from

scratch building an electric car. you need r&d resources. you need production resources. theneed service backup on market. it's not that easy for a startup starting from scratch. that is one thing. that is also big advantage for us, being an established carmaker. it's easier for us to bring an electric car out to the market and for a new startup. -- than for a new startup. haidi: don't forget, if you are away from a screen, you can find in-depth analysis on bloomberg radio. now broadcasting live from our been new video in hong kong -- studio in hong kong. this is bloomberg. ♪

haidi: this is daybreak asia. shery: hong kong chief executive carrie lam focus on the economy in her third policy speech, drawing criticism for not tackling political matters. the problem right now is that carrie lam announced a series of measures but will she get legislative support to actually carry them out? lam may enjoy support in the legislative council, making up one third of seats in the chamber, but whether or not she gets a legislative support, that will be difficult when she's facing criticism from several corners. implementing all 200 initiatives will be a tough task. the democratic alliance party also expresses disappointment in the blueprint, shying away from

political measures to deal with the ongoing unrest in the city. there is the fact that the process may be brought down by the major backlog when it comes to proposals that lawmakers have to wade through. there are more than 50 before this latest round of initiatives was announced. it is a daunting task. her leadership will be called into question. go ahead. lam is due to face questions from lawmakers in a few hours about her policy ideas. this is standard procedure. there are signs that things may not go as normal this time. >> yes. questions fromce lawmakers at 10:30 a.m. local time. it's highly unlikely things will be business as usual after the commotion we saw on wednesday.

this is already foreshadowed by the finance committee meeting, filibustering led by opposition lawmakers derailing those sessions, further delaying funding approval for 12 billion u.s. dollars of relief measures and work projects. add thatrtant to carrie lam is also to hold her second community dialogue. instead of the being face-to-face, she is doing it via facebook live at 8:00 tonight. we are seeing overwhelming , aicism in the comments taste of the criticism the chief executive will face as the city grapples with a long list of economic and political troubles. she's being lambasted for missing an opportunity to reach out to citizens with a policy address. joining us now from hong

ho. is charles help -- great to have you. ,ne of the biggest criticisms chaos aside, of yesterday's proceedings is that she's essentially trying to give an economic resolution to a standoff problem that needs a political solution. is that possible? >> no. i don't think so. i think that what she did yesterday, the market was disappointed. they are looking for more supplier plans. she didn't address that issue. where are we now? shery: what can she potentially offer to get the legislative support for these measures to go through? will they be enough to even go some way to appease what the protesters are hoping for? >> no.

it's a long question. i think that the protesters are asking for five demands. i don't think she fulfilled one already. i think she's working on the rest. some of the five issues that they asked. i think the protesters are asking for more. haidi: the protesters are asking for more. the five different issues and demands they are asking for. in terms of the younger protesters who point to the inequality as being endemic of the lack of democratic processes they see in hong kong, you said it's their fault, the young people's fault. >> well. thing startedhole this year, earlier. about the bill. people were asking about,

thinking about extraditing people back to china. that stopped there. this whole thing is a big movement from other countries trying to overthrow the hong kong government. , even if sheink fizzled the five demands, it won't stop. shery: foreign governments. what evidence do you have of that? >> look at the slogans about the protesters. these are all taiwanese chinese. the protesters, i call them writers, they are well-financed and organize. look at their logistics. some of their logistics, their travel is better than the police in hong kong. is coming from

after 2014. it never stops. haidi: exactly. we had this protest in 2014 as well. right? thattime around, it seems they are less organized. there are more grassroots moves coming from different sides of hong kong. i don't understand how you could say that there -- their logistics are better. there doesn't seem to be a clear leader when it comes to these pro-democracy protests. >> there's a leader. people say there's no leader. look. hong kong now is the biggest capital of fake news. fake news capital of the world. you can come out and look at the .ews the media at first said, this is peaceful. bombs ande the gas the timebombs.

now it's really pathetic. you are seeing people, kids, 11 years old to 14 years old. what happened? it is all coming from the social media. some people in hong kong have emotional disorder. shery: those pictures we are seeing show, we can clearly see violence on the streets of hong kong. when you are clearly seeing protesters getting beaten up and violence against police is also rampant, i'm not sure if you could call this fake news. it is visible to everybody's eyes. the key question is, how do you move forward from here? how can the government of hong kong find some concession with protesters? what kind of debate can you have when you had five months of ongoing violence? before, this is not

a simple demonstration. there is someone behind there. there is a big leader behind there. i think the western media is not being fair to the police in hong kong, also. shery: we have reported clearly that police have been hurt. we had a police officer whose necklace/. neck wasas -- slashed. we have reported on both sides of the story. >> just lately. shery: how can these five months ?f protest and -- end >> i don't see -- think it will end. we have to trust the police to safeguard hong kong. day,: at the end of the you are looking at a situation where the government is increasingly isolated. the protesters are increasingly angry. they just keep screaming past

each other. it doesn't look like this standoff can come to any sort of compromise. do you think carrie lam's policies will go towards appeasing people? what are your thoughts on the package she delivered yesterday? >> maybe some people. not enough. think supply and demand. supply of land will help a bit. haidi: what is the resolution? >> i don't know. i wish i could give you an answer. are you concerned? >> no. shery: continue. >> mainland china, one country, two systems. you have freedom in hong kong. rate? -- right?

free capital flow and movement. i'm not sure what kind of freedom they want. shery: what sort of debate can you have with a young generation? we continue to see this generational gap on the view towards beijing. if these young people are supposed to leave -- lead the future of hong kong, what sort of debate do you need to have in order to move forward? >> i'm not sure. we are talking about young people. old oreople -- 11 years 12 years old or 15 years old. what kind of young people we are talking about? i'm just surprised that the fake media is bringing down these young people. i'm sure the opposition party should be very happy. i've never seen these children. shery: so far in this

conversation, you've attributed blame to the foreign media, for an external forces in taiwan, to the fake media domestically and abroad as well as the young people. at the end of the day, the adults at the table, the government,. is there a way forward for this government to be able to actually communicate and liaise with the protesters to compromise and move forward? >> the opposition party never wants to sit down. they are against everything. have you seen the prisoners in singapore? they want to overthrow the government. this is the aim. i don't think they can do that. haidi: we'll have to leave it there. thank you so much for joining us.

you can get up-to-date with our interactive tv function, tv . you can catch up on past interviews as long as i -- as well as dive into the bloomberg functions we talk about. this is for bloomberg subscribers only. this is bloomberg. ♪

haidi: this is daybreak asia. let's get a quick check of the latest business flash headlines. and the united auto workers have reached a tentative agreement on a new contract. it clears the way for a union vote later on thursday on whether to extend a three-month strike. the deal includes $9 million of investment in u.s. plants, improved bonuses and pay rises worth 3%. the strike is the longest to hit gm in half a century. shery: softbank is continuing to work on a rescue plan for we

work despite the office sharing startup preferring to be saved by jpmorgan. softbank is discussing $5 billion to finance and solve edge the biggest investments. the funds would come from softbank itself rather than from its vision fund. softbank owns one third of rework but won't seek a majority holding. seeking aancial is syndicated loan of $3.5 billion at a lower rate, joining other tech companies looking to slash their debt costs. worth $2.5 billion. of threeay the price year is less than 100 basis points. at last came to the loan market in 2017. shery: we are seeing asian stocks under pressure at the moment. 2/10 of 1% down after gaining for four consecutive sessions.

futures are down. we are seeing materials and real estate leading the declines. nikkei futures are also under pressure. cosby futures after that be ok rate cut. plenty more ahead on daybreak asia. this is bloomberg. ♪

haidi: good morning. asia's markets have just open for trade. shery: good evening from new york. welcome to daybreak asia. ♪ haidi: our top stories this thursday. president trump welcomes increased buying from china but says a trade deal is unlikely before next month. au leaders had for talks in brussels as hopes of a brexit breakthrough fades.

last-minute negotiations appear to be stalled. shery: carrie lam faces questioning by hong kong lawmakers a day after her policy address was drowned out by rowdy opponent. haidi: let's get you started with a quick check of the markets. japan and korea just coming online. they are under pressure in the moment. the nikkei slightly down. this coming after four sessions of gains in the neck a -- nikkei. the japanese yen has strengthened slightly as we continue to see some trade tensions playing out. the 10 year yield now holding at nine us -- -.9%. japan remaining the biggest foreign owner of u.s. treasuries ahead of china, not surprising given those negative yields in the global negative fielding debt. cost be unchanged at the moment. last fourin the

sessions after the be ok cut their interest rate to rip does a record low. the asx 200 under pressure. we have materials and real estate leading the declines. kiwi stocks falling after four sessions of gains. let's get the first word news. >> thanks. european union leaders gathering brussels later thursday as negotiations continue on a potential new brexit deal. despite optimism, key issues remain including the irish border and the status of northern ireland after the split. thaton's allies dismissed the party would drop its opposition to the prime minister's latest plan. minister ise pledging to stand firm after three days of clashes between police and protesters in catalonia. demonstrators returned to the streets to demand the release of separatist leaders jailed for last year's independence

referendum. authorities are said to be considering moving the venue of the upcoming football match between barcelona and madrid. the imf says global economic risks have risen as central banks reduce borrowing costs. it is calling for stronger oversight to ease threats to an shakye -- already expansion. it says threats to growth and stability remain firmly skewed to the downside. we will be live at the imf world bank annual meeting in washington tomorrow on daybreak asia. our guests include asian development bank president and philippine central bank governor. european central bank policymakers are calling on government and the institution itself to consider a change of strategy after gears of stimulus and fiscal restraint left the eurozone with weak growth and

inflation. it comes a week before mario draghi the final news conference of his term. 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. this is bloomberg. ♪ haidi: president trump says the u.s. and china continue to talk but a potential deal is unlikely before he meets president xi at the apex summit next month. u.s. lawmakers are choosing to defy china's threat of retaliation over a bill that supports pro-democracy protesters in hong kong. our racial government managing editor joins us now. u.s. legislative action on hong kong, not helping the mood for those trade negotiations. >> yes. that's right. to thely a distraction

positive signs we have been seeing on trade the last couple weeks. the senate is set to move forward, there is basically unanimous support in washington for this. the president might have no choice but to sign it. if he doesn't, it could be overridden. by all indications going chinad, and how much will take action against that? they have threatened retaliation. they have done that in the past. it's not clear what that would entail. twitter,'ve heard on the chinese embassy in the u.s. reacting to this tweaking of rules requiring chinese diplomats in the u.s. to notify the state department of official meetings. this adds on top of the threatened retaliation from china because of the support of the hong kong democracy and human rights bill this week. do these geopolitical elements

add complications to what is already a balancing act in these negotiations? >> yeah. things tend to move on different tracks. the u.s. china relationship is very complex. there's many facets to it. we've seen the questions on tech in particular continue to be a strain even as they talk about a trade deal. that will persist even if they come to an agreement at apex. a phase one deal includes some agricultural practices in exchange for really a de-escalation of the trade war and delaying increased tariffs. tensions these broader in the u.s. china relationship will persist. part of that is educational exchanges, part of that is making sure that china isn't taking u.s. tech, which is the crux of these negotiations. u.s. negotiators really have no

idea how they are going to enforce that. apartre taking action from the actual talks that are happening. monthsit has taken as 18 to potentially reach these phase one many deals. it's a low hanging fruit. it is no controversial elements. how much more complicated is it by the time we move on to things like tech and ip protection in the structural changes that have been demanded of china? or do we just never get there? >> that is really the big question. it's very unclear how you get there. and what the u.s. wants. from the chinese side, they see many hocks in the u.s. this is the opportunity the u.s. has to keep china down technologically before they pass them in these areas. agreement,y reach an that might be for the next president to decide, if it's

trump are some of the else. we are heading into the campaign season next year. trump clearly wants some sort of deal that can stop the bleeding among farmers that he needs. wants to stop the bleeding in china as the economy slows and put a floor under these tariff increases and trade tensions. , biggerthese longer issues like ip, like tech, national security issues, that could go on a very long time. shery: our asian government managing editor there with us. our next guest is not select a u.s. china break to -- breakthrough. that shows and currency market this -- markets. you are not even optimistic when it comes to this first level easy deal that we are awaiting. >> it has been almost a year

now. we have gotten nowhere. the best they can do is have a temporary standstill. i'm not particularly helpful. i think the chances are that in the near term, things will get worse. it's only december 15. that's when the next set of u.s. tariffs will go up on china. haidi: that makes what the u.s. did for the interesting. i want to bring up this chart. ,s what we are seeing expectations of another insurance cut from the fed at the end of the month, does the dollar remain the best out of a bad bunch if the trade tensions continue? >> you are right. research shows that the u.s. dollar rises modestly when the fed is in a rate cut mind. on average, a 5% increase in the u.s. dollar index over these rate cut cycles. the reason is, if the fed is

cutting, the rest of the world economy is soft as well. other central banks will also becoming. that is exactly what we are seeing this year. idea: do you buy into that that when it comes to trade tensions, perhaps we should be watching china's daily you want fix? they said it at a weaker than expected level in the previous session. provide a signaling device about where the government in china is thinking on the currency and trade pressures more generally. they did do that weaker you want fix today. it tells you that they will not play ball with the u.s.. i don't think there's a lot of reasons to be particularly helpful. trade has a long history of difficult negotiations. you can see that between the eu and the u.k. right now. three years of negotiations and they still haven't got a deal.

shery: do you see it at weaker levels against the u.s. dollar going forward? a weaker chinese yuan hurts beijing. there are financial imbalances at play. >> you are right. it is a very delicate balancing act. the central authorities have to play with the currency. so far this year, dollar cnh is the major driver. u.s. china trade development. if you look at dollar cnh, they are mirror image of each other. trade is the major driver of those two currencies so far this year. see this continue to uncertainty around the world. we have seen the japanese yen strength and a little bit after much weakness against the u.s. dollar. will be the next signal for the yen? >> i think at the end of this

month, particularly the last a of the month, it will be a major potential risk for currency markets. within 24 hours, you have the fomc. you have the bank of japan and bank ofk of -- the canada. you potentially have a hard brexit. we think the bank of japan will ease their policy balance interest rate by 0.1%. i don't think that is fully priced in. you may see a spike in dollar-yen. the thing that will push dollar yen down further is the u.s. china trade development and the weakening world economy. haidi: is that why the aussie will remain well priced as well? if we get a poor reading unemployment, that will push up expectations. >> right. the r.b.i. made it crystal clear they are looking at the unemployment rate, not jobs growth. the marketto climb,

pricing for a rate cut would certainly shoot higher. shery: not a great deal of progress since they started cutting. stay with us. our guest will be staying with us. forl ahead, the outlook brexit negotiations. haidi: we are counting down to asia's most protectable data. job numbers later this hour. we will break them down. this is bloomberg. ♪

shery: european union leaders meet in brussels on thursday as negotiations continue on the potential new brexit deal. some optimism a deal may be reached the key issues remain. still with us is joseph but are. thank you for sticking around. this chart showing you the one week implied volatility in

sterling at the highest level since july of 2016. not surprising given that we have these ongoing headlines coming from the negotiations and the latest is that the eu and u.k. officials seem to be playing down the prospects of a deal. can notpens if johnson seal a brexit deal with the eu? brexit starts to get priced in, the ceiling will fall dramatically. you can easily see a knee-jerk reaction of 8-10% in quicktime. in early asianen trading time, it will surpass a 10% move. i'm not particularly helpful there either. the northern irish border issue seems to be one of the insurmountable problems. no matter what solution they come up with, someone will be unhappy. shery: do fundamentals model --

matter at all for sterling? >> yeah. at the moment, the only thing in town for sterling is the brexit issue. i feel sorry for the bank of england. they have this big downside risk to their economy. their economy is in pretty good sake -- shape. quite strong rage growth. ordinarily, they would be hiking in that kind of environment. they have these very large downside risks. it is binary. it will be in or not. we will find out shortly. haidi: the boe isn't really difficult situation. it's like how the fed tries to navigate policy amidst the uncertainty of trade. >> that's right. with the fed, there are clear signs that inflation has peaked. there are clear signs that business is going to be weakening a lot more in the u.s.

than in the u k. it has been week for over a year now. haidi: it is problematic when how quicklyout -- does that recover even if you have certainty on brexit? >> i don't know. it would take a long time for those animal spirits to recover. they are very hard to came back -- gain back. shery: what about the euro? we have seen euro gain a little bit on fiscal stimulus coming from the european union and from these individual economies. look, that's the next up the rank for economies in general. particularly for europe. i would want to be seeing the germans be more hopeful and open to that. tightestone of the runners of fiscal policy amongst the european union.

if they were to open up, that would ease the pressure of christine lagarde to have to do more fiscal -- monetary stimulus as you know she starts in a few weeks. shery: thank you so much for your time. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. lubeck subscribers go to your terminals. it is right there on the mobile in the bloomberg anywhere app. tweak those settings so you get the news on industries and assets you care about. this is bloomberg. ♪

haidi: this is daybreak asia. softbank is continuing discussions on providing we work

with $5 billion of financing in an effort to salvage one of its largest investments. the move is one of two main rescue plans the office sharing startup is pursuing as a cash crunch looms. peter elstrom joins us from tokyo. it seems that this might not be the option that we work prefers. the other one would be the debt package from jpmorgan. why does softbank want to do this? these talks are moving pretty fast at this point. you have softbank which is the largest shareholder in we work. jpmorgan is one of its biggest financers. they are trying to work out some sort of bailout package to help the company, to give it cash before runs out of money. we heard from sources that could be as soon as next month. they are racing to try to put together a couple of different alternative plans. one is led by softbank.

we've heard that that is about $5 billion that would be a combination of money that the company would put, softbank would put into we work. it would come from softbank group itself rather than the vision fund. on the other side, you have jpmorgan putting together this debt package which could carry very high interest rates. we've heard it could be 50% interest rates in order to get investors interested in putting additional money into the company. these are two competing alternatives. it's a very fluid situation. the board still has to look at these options. there's a possibility could see some combination of the options. haidi: the jpmorgan root would be the riskiest offering in recent years. what are investors us -- saying about this? >> investors have said, one person called it off the charts ugly. this is a very high risk deal.

they are talking with their financers at this point, trying to figure out exactly how much they would have to pay in interest to be able to get investors involved in this kind of deal. this is a bailout. the company is racing across -- it -- against the clock. they have significant interests in making sure the company is able to continue, able to get fresh capital to keep operating. they've already taken out the ceo and founder and replaced him with a couple of ceos. softbank is getting more involved in the management, as we reported a few days ago. one of the senior executives at softbank has gotten involved. they want him to try to improve the operations there, take down some of the cash burn, and smooth out the business plan going forward so they are able to get through this difficult stretch. seeing, let's get back -- that back on the screen.

a jump of more than eight cents on the dollar, raising that plunge. is there something of an existential moment in terms of the criticism? be a judgmentto moment, not just on we work but this transition from telecoms to venture investing and really whether his strategy and having so many stakes in different companies has been the right one? yeah. you raise an important point. he raised this $100 billion fund which he calls the vision fund to put money into the highest profile startups around the world. uber, other ride-hailing companies. dozens of them around the world. he pushed up the valuations by a bunch of these companies in the private market. in the private market, you only have one or two people setting

the price and there's a vested interest in pushing up those valuations. when you try to take them public and sell though shares a public investors, they may have a different opinion. use a pretty serious collision with the public markets where they did not by the valuations that we work was trying to propose as they tried to go public. at this point, you've seen uber's valuation come down since its ipo. thosenk us to reconcile as it reports its own financial statements. it will have to recognize some of these decreases in valuations. this is a big question. he has had many of these ups and downs throughout the course of his career. for him, this is one more thing. they are planning on proceeding with many of these investments. shery: really appreciate your time. asia tech executive editor with the latest on the we work softbank stargell.

jumped in late trading after overseas subscriber growth helped soothe investor concerns about a slowdown at home. forecasts in new year's is outside the u.s., reversing a decline at home. expects to sign more customers. haidi: ibm slumped in this desolate trade after misting estimates further quarter revenue. it failed to compensate for continuing declines elsewhere. total income for september was $18 billion, down 4% from a year earlier. a fifthlion to mark consecutive quarter of shrinking sales at ibm. china's leading leisure retailer is defying the trade war, posting strong

third-quarter numbers. it rose 55% from a year ago. next, the most unpredictable day of the month. it is aussie jobs day. ♪ everyone uses their phone differently.

that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. plus, get $250 back when you buy an eligible phone. that's simple. easy. awesome. call, click, or visit a store today. haidi: we are just getting

across the bloomberg breaking news in terms of the jobs numbers and unemployment rate from australia. a dip when it comes to unemployment, 5.2%. changed, 14 7000 jobs -- 14,700 jobs. that is slightly less than expectations of 15,000. we are getting full-time employment change, 26,200 jobs. jobs inction of 11,400 part-time unemployment. we are getting the business confidence index contracting by

two points. let's get the reaction when it comes to what this means for the rba. deutsche bank senior economist is with us. they are looking at the unemployment rate, they are trying to head towards full employment. does this change the picture as to whether we see a higher likelihood of a rate cut to follow? >> there's a lot of moving parts in this data. the rba will be focused on that unemployment rate. given that it has fallen in the anth, it is suggesting tighter labor market than otherwise. as a trend, the unemployment rate is in falling. as with the rba wants to see. we are not getting that in the data. the door is open for further rate cuts still. the risks are towards more rate cuts. will't think this data

lean toward the rba waiting a bit longer. we heard today, talking about the fact that 6% of employment in australia it is closely linked to the construction sector. probably more given how relevant it is to other sectors. he was saying how the worst has yet to come when it comes to the contraction expected in the building sector. is that subjective? we are looking bearish when it comes to the jobs picture. growthave seen jobs being surprisingly strong. stronger than what the economy is suggesting. more meeting indicators have been pointing towards a softer labor market and jobs growth to soften. that highlights the risk that the unemployment rate is going to edge higher, not trend lower.

not just construction workers, other leading indicators have been pointing to a softer job growth. job bears have softened. given that business confidence is weak, but also points to jobs growth softening. given that, we are seeing growth below trends for quite some times. -- time. that is also pointing to the fact that the jobs growth is going to weaken. haidi: as ever, the macro conditions continue to look more doesn't look like an end is in sight for the trade war just yet. that will have implications for the demand side of things. >> absolutely. the global picture, we have seen more positive development over the past week. that uncertainty is continuing. as far as business is concerned, it will take a lot for

confidence to turnaround for them. when it comes to the economic data, momentum is still quite week. last night, we are seeing evidence that the u.s. consumer is being hit. that is one source of resilience in the u.s. economy. and for the broader picture globally. so that global environment certainly adds to that picture that rates are likely to come down. haidi: why is the rba being so when vicious -- ambitious and aiming for full implement and not just reducing an appointment? -- unemployment? >> that is what the rba ideally needs for wage growth to pick up. that would help get inflation back to target. think that if you do say the -- see the unemployment

rate start to slow down, signs that economic growth will be above trend, then that could be sufficient that the economy is making progress. we're not anywhere close to that. in fact, we are moving in a different direction. still a long way from that 4.5%. think, as i said, the risk is that the unappointed rate is going to edge higher from here. haidi: what is the risk of reflating the housing bubble? >> we are seeing increases in sydney and melbourne over the past couple months. it does look as though we are looking at a moderate recovery.

prices being higher adds to the impact of rate cuts. it is part of the transmission mechanism. consumers feel that negative wealth effect is not in the picture anymore. if consumers are feeling a bit more wealthy, they are more likely to go out and spend. we are not seeing too much signs that household spending is coming back to that rise in prices. growth,ee some modest from the rba's perspective, as they that -- that is a positive thing. shery: thank you so much for that. we have an alert on the bloomberg we are getting. singapore exports numbers, nonoil domestic exports contracting 8.1%.

that's bigger than expected. also deceleration from the previous month. no x contracting for the past seven months now. we have seen those declines easing somewhat. still, a contraction of 8.1% year on year. when it comes to those electronic exports year on year, a bigger contraction than was expected. down 24.8%. this would be a decline for the past 10 months. if you take a look at this g tv chart on the bloomberg, you can see the declines have eased from those double-digit declines, forcing the line in yellow. we are now seeing bigger declines than expected. easing from the previous month. you can see other economies where it seems that export contraction may have come off their bottoms. perhaps a more optimistic picture for economists in the future. let's get the first word news

with ritika gupta. >> china is offering a trade olive branch that may survive the rising tensions over the hong kong bills on capitol hill. days after president trump announced the two sides had agreed to phase one of a deal, beijing is pledging to tackle the forced tech transfers. also says his government will ensure equal treatment of foreign companies in china. >> it's great for our country. it's great for china, too. it is something that has already taken effect even though the deal will be signed until i'm -- won't be signed into limit with president xi in chile. >> it's a sign that consumers are becoming less confident about being the main pillar of growth and potentially bolstering the case for a third straight rate cut. the value of overall sales fell 3/10 of 1% in september from the

prior month after a revised increase in august. the 737 max 8 investigation has taken a dramatic turn. indications that some potential evidence may not be what it claims. an airline employee gave the inquiry folders that claim to show a crucial repair have been done the day before the disaster. the time displayed in a copy computer suggests the photos were taken before the work was carried out. 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. this is bloomberg. leader memberng discusses the cities protests and will give us your thoughts on carrie lam's policies. this is bloomberg. ♪

shery: this is daybreak asia. hong kong chief executive carrie lam focused on the economy in return policy speech, drawing criticism for not tackling political issues. our reporter is in front of the government headquarters. will she get the support she needs to see her plan through? lam enjoys a majority. ae pro-democracy camp showed third of seats in the chamber. --y have pledged lawmakers will be grilling the chief executive on her policy address.

securing that legislative support on her initiatives will be hard going. even before wednesday's drama. delayed after the recent filibustering and finance committee meetings. there's are ready a massive backlog when it comes to 50 before this greatest -- latest round of initiatives. shery: shery: it's not just lawmakers that are going to grill carrie lam. we are hearing she will be taking questions from the public again. what can we expect? >> carrie lam will be holding her second community dialogue. instead of a face-to-face , it willike last month be a facebook live q&a with the public at 8:00 tonight. the page has been set up to

reflect her closing remarks at the policy address. she called on 7.5 million hong kong residents to emerge from the storm and embrace the treasureto treasury -- that home. she is perceived to be disconnected from the people. there's already a barrage of comments on the facebook page supporting the protests, demonstrating how were policy address does not hit the bark -- mark for many. is stark difference from her first facebook live session she had in august of 2018 in which she was smiling for pictures after that. haidi: thank you so much for that. joining us now from hong kong is legislative council member claudia mo. thank you for joining us. we are seeing hong kong headed into a technical recession as we continue to see the ongoing protests now. how much longer can the city bear the brunt, the economic

fallout from the protests? >> the main problem is that carrie lam is becoming so irrelevant to the hong kong situation. she is so cheeky. she pretends. there's not much else going on in hong kong except some housing problem. that's what she focuses on in her so-called policy address. bubbling in hong kong. the young's demands have gone beyond the daily livelihood issues like housing. think thatwould just so she can band and -- banded the problems. anymore issues will just go away. technical downturn on the economic front. first of all, it is technical. it is not unexpected.

confidence?nvestor business confidence in general. did carrie lam bother to address that problem at all? not a word. basically, it's hong kong is to be seen as a normal society sheking down, how would maintain business confidence? that's the major problem in hong kong here. shery: there's a lot of discontent in the city. cannot justify the increasing violence we have seen against police as well? >> exactly. of course, the younger now bearing a huge grudge against the police for their brutality. carrie lam would just keep condemning violence on the part of the protesters. what about police brutality?

you have seen footage sent out around the world showing evidence to that effect. that it's all a misunderstanding. imply, shel line is, hasn't said it yourself, the official line is always implying that there are foreign forces behind the hong kong protests which is just a pack of lies. is, you haveoblem this increasingly isolated government. you have a leader who is becoming increasingly irrelevant , out of touch, unable to provide a political solution to what is a political problem. the economic policies are part of it. some of the protesters are saying, economic inequality is because of the lack of democratic process in hong kong. where do we go from here?

is it possible to find a way out from this intractable situation we find ourselves in five months later? >> there's very little to be done as of today. carrie lam should go. suggestingaying, that she would like to go with she could a beijing when let her. -- wouldn't let her. she could always cite health problems and nobody could force her to stay on. the problem is, one would's expect -- one would suspect that carrie lam got an order from beijing, you mustn't appear as if you are bowing to public demands and pressure, to the people. because that is just to an chinese -- un-chinese. you need forced to crack down on the unrest in hong kong. that is what has been happening. how to handleknow

this, unless beijing changes its mentality. you would say, what is the point of having carrie lam gone? there would just be another puppet in place. at least we could have a new possible, restart, if between the government and the people. are you worried we are getting closer to the day that beijing says, enough is enough? >> yes and no. yes because they would tend to lose temper. the temper here has been boiling. on the other hand, it would seem that while beijing wants to claim a higher ranking is not they woulde top one, need to realize that they have to present with some moral

authority over the label china. military conduct crackdown on a civil unrest in the city, right? you can't claim it's a defense issue. i need to deploy the people's liberation army into the streets of hong kong. think that is still unlikely. the problem is, the american house passage of the hong kong human rights and democracy act a as ago would serve psychological booster for the protesters in hong kong. is that a good thing? will we persist with our fight? beijing will get doubly angry. shery: we have heard some people

say that the u.s. bill really doesn't go far enough, that it should have been the hong kong policy act of 1992 that should have been brought forth. what else are you expecting or do you want washington to do? what do you expect the beijing response to be? be happyg wouldn't about it. they are usually a very conventional line. foreigners should stop meddling in china's domestic affairs. i'm a journalist by training, i tend to believe more in journalistic dissemination rather than political lobbying. political i'm doing a stuff at the moment. as much help as we can get from anyone, including the americans, including the washington

government, would be more than welcome. hong kong people are feeling fairly desperate. shery: who do you think has more leverage at this point? you see the hong kong at economy -- economy certain to enter a recession. greater economic pressures coming down in the gateway to china becoming a liability. do you think the protesters have some leverage here in terms of how much longer these protests continue to partially shut down the city? worrying point that some people would say is a positive point, the fact that are protesters couldn't care less about having or not having any bargaining chips. they say, let hong kong just shut down. let the hong kong economy died. if we burn, you burn with us.

in the ashes if necessary. if hong kong is, instead. it should resurrect somehow in later days. it's that sort of mentality. i hope beijing would see that. although hong kong status as a gangplank to the china market, to the vast china pie, it has disappeared in recent years. still, hong kong serves as a big china, the gateway into this huge china market. what you can do exactly. hong kong is necessary for two main points. one is our rule of law or sense of and the practice of. the second thing is free flow information.

asideong has been pushed and beijing thinks it could take over. , imaginary.ously hong kong is still necessary to china's development very much. self-destruction is a theme that is emblematic of how deep-seated the anger is among some parts of hong kong. great to have you with. thank you so much for your time. still more ahead on daybreak asia. this is bloomberg. ♪

shery: this is daybreak asia. haidi: a quick check of the latest business flash headlines. general motors and the united auto workers have reached a tentative accord on a new contract. it clears the way for a union vote later on thursday on whether to extend a three-month strike. the deal includes $9 billion of investment in u.s. shops. the current strike is the longest to hit gm in almost half a century. shery: softbank is continuing to work on a rescue plan for we work despite the office sharing startup preferring to be saved by jpmorgan.

softbank is discussing sought -- $5 billion of financing. we are told the funds would come from softbank itself rather than from its vision fund. softbank owns one third of we work but says it won't seek a majority holding. haidi: huawei is defined pressure from the united states, posing strong smart phone sales numbers. revenue jumped 24% in the first nine months of the year despite the trump administration curbs on u.s. tech. rosel simkins -- shipments to more than 185 million units. total revenue came in at just over 87 -- $86 billion. shery: that's it from daybreak asia. the china open is next. this is bloomberg. ♪ from the couldn't be prouders

to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need.

it's a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy an eligible phone. call, click, or visit a store today. >> why do you