"daybreakcome to australia." i'm shery ahn a bloomberg world headquarters in new york. sophie: i am sophie kamaruddin in hong kong. we are counting down to asia's major market opens. here at the top stories we are covering in the next hour -- brexit breakthrough. boris johnson begins the hard sell of his new brexit deal with the eu ahead of saturday's crucial vote in parliament. china says it is in close contact with the u.s. as they work on a draft deal. gdp figures will show the effect

of the trade war and turkey agrees to a temporary cease-fire in syria. pencera jumped as mike said tariffs will be lifted if the truce remains in place. liveeen: i'm kathleen hays in washington, d.c., at the imf world bank annual meeting. in this hour, i will be speaking with the secretary of finance from the philippines and the bank indonesia deputy governor about the impact of the trade war and more and what policymakers can do about it. shery: first, let us get you started with a check of the markets. we are seeing u.s. futures unchanged after stocks climbed to an almost a record high in thursday's session. the s&p 500 at one point topping 3000. we had health care and real estate leading gains. we had mostly positive quarterly earnings results. at the same time, we had more risk appetite as we saw that u.k. and the european union struck a deal. the dow, though, underperforming

after ibm disappointed with results. we are now looking forward to more data coming out of asia. sophie: we have chinese third-quarter gdp along with japanese pmi numbers -- cdi numbers for september. taking a look at the board, you can see how asian futures are setting up, looking at a mixed start this friday with regional shares still on course for a second weekly rise. also want to highlight today on the docket, we have jobless numbers from hong kong which may ther more insight into how unrest in the city has affected various sectors. let's check the aussie dollar this morning. after jumping 1.1% overnight, holding onto those gains. traders will have some lines this morning that negative rates are extraordinarily unlikely in australia. moving onto sterling, getting whipsawed, trading around 1.29.

now hedging against a negative .utcome let's take a closer look at the brexit agreement hammered out in brussels. prime minister boris johnson says the priority now is to deliver the deal. >> this is a great deal for our country, for the u.k.. i also believe it is a very good day for our friends in the eu. what it means is that we in the eu asan come out of the one united kingdom. brussels.ross to a deal seems to be done. what has changed? a week ago, this seemed almost impossible. >> this deal did seem impossible a week ago. the united kingdom and european union have agreed on a new way

to leave the european union. i'm sure you remember this term, which is so hated in the united kingdom that prime minister boris johnson said he would never accept it. he managed to change the technicalities around it and ditch the backstop. of course, there are some strings attached. this is again very technical, but the deal will see the entire u.k. pull out of the customs union, but there will be checks done between the north -- northern irish, the rest of the united kingdom, and a very special customs partnership, and that has become an issue for the northern irish assembly. as you know, they prop governments in london. they believe this is not good enough, and they do not want to sign and vote for this deal. this is problematic. even though we have a deal down here in brussels, we are headed for a big showdown on saturday which will happen at the u.k. house of commons. that is the big vote that will decide if this deal is completely dead in the water or, actually, the prime minister is able to bring it back from the dead, get the deal sealed by the in p -- mp's and leave

european union on time. >> what happens if the deal is rejected? does that mean we get a brexit delay? >> that is another side of the equation here. it is really the question we are all asking ourselves here in brussels. prime minister boris johnson made it clear in his press conference that he intends to get the vote through, and he completely dodged questions on if he would ask for an extension or if he is even contemplating the idea he will need more time to get the deal through. when you look at the europeans, i spoke to donald tusk, the head of the european council, one of the top negotiators for the eu, he says there is still time, but time, as ever, is of the essence. take a look. quick thanks to this -- >> thanks to this deal, we can avoid the horrible implosion. this is something maybe not new, but it was a kind of

breakthrough. there was also a historical because this was for me the first and most important criteria. clinics that was donald tusk, the head of the european council saying this is a good deal, a deal everyone should be happy with. every side, every major stakeholder agrees with it, it's time for the u.k. parliament to get a grip and get the deal through, but the question again will be time. will they give more time to the u.k.? the europeans do not want to go there. they do not even want to contemplate or talk about this, but if you look at every other summit, it's clear europeans do not want to force a no deal brexit. they do not want to push the u.k. out. if they get to a situation where this becomes a binary choice -- no deal brexit or more time -- i guess it is fair to say they would provide more time, but this is something europeans at this point after three years do

not want to do. it does help johnson's point by ruling out another extension. thank you for that perspective. anna rosenberg is head of europe and u.k. for siegemund global advisors and joins us now from london. great to have you with us. maria was telling us that parliamentary math may be looking challenging for prime minister johnson. what happened? could this pass if, for example, you pushed -- put some conditions attached to the deal? >> it does not look very good for him right now. he could get 316 votes, and that is still short, so i think it will be most likely that he will lose the vote narrowly on saturday. shery: that means most likely it is not an early election. what is next? are we going to see that referendum that has been pushed by labor? will beink there

another push for a second referendum. probably not on saturday anymore but more than originally planned. now the calculation is to wait until the deal has been defeated to get more support for a second referendum, so we expect the opposition is going to table an amendment for a second referendum early next week, and if the deal has been defeated, it has a better chance of passing. if it passes, it will be an extension, and there will be a second referendum, probably either with johnson's deal that it will remain on the ballot deal.or with may's a fails, he will push for an election and that will probably not happen at that point. sophie: that is the scenario playing out if boris johnson

does not get an approval from the u.k. parliament this saturday, but what kind of compromises might he be willing to offer to garner that support? tohe will offer especially keen to get a deal more certainty around workers , and heronmental rights is prepared to already include them in the new deal he has negotiated. the problem is they are now in the political declaration and no longer in the legal text. they are easier to get rid of, labour questionable if mp's that are deeply skeptical of johnson will trust him on sticking to his word at this point. sophie: if you can appeal to some of those leave supporters to get the 325 votes, but widely

speaking, how does labour position this given that it is looking more and more tenuous? >> they just need 320 votes to get it over the line. corbyn is in a difficult situation internally. there will not be a shift in leadership just now. he -- his stand on wanting an election is losing power. his positioning is weakening within the party. the one calling the shots now is shadow chancellor mcdonald, and there is recognition that they need to back a referendum before the election. the result will be a narrow loss for johnson and labor wanting to back a second referendum. of a difference is this revised deal to prime may's deal, especially

when it comes to the irish backstop being replaced by that customs check in the irish sea? >> it's funny, really. in a way, it is different, but it is something they has said in the past, a british prime minister could never really stand up for. johnson has made a dramatic u-turn in accepting something he would have previously not accepted at all. it is a harder deal. it's going to be difficult to , but it is many mp's a deal that most of the people that are somehow reconciled with brexit, those on the left can live with. he has been successful in dredging up the deal in a way that theresa may was never able to. it looks better than may's deal, but that's mainly because he was able to sell it better. tuned to bloomberg's global coverage of brexit this weekend.

anna edwards will be on our special at 2:00 p.m. sunday in new york, 2:00 a.m. monday in hong kong. let's get to first word news with jessica summers. jessica: the lira valley two 01-week high on news of a temporary cease-fire in syria -- the lira rallied to a one-week high. the news was announced by u.s. vice president mike pence after hastily arranged talks in ankara. he also said the u.s. would remove sanctions on turkey if the cease-fire remains in place. >> with the limitation of a cease-fire, the united states will not impose any further sanctions. on turkey. a permanent cease-fire is in effect, the president has agreed to withdraw the economic sanctions that were imposed. jessica: hong kong has seen its biggest quarterly outflow since the global recession a decade

ago. net redemptions totaled $1 billion in the most recent quarter. meanwhile, the city's property tycoon's are getting richer thanks to chief executive carrie lam's new housing policy. the combined wealth of six of hong kong's biggest property billionaires jumped more than 3% as it of developers rallied. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 100 20 countries. i'm jessica summers. this is bloomberg. sophie: thank you. still ahead, we are live in d.c. at the world bank imf meeting to speak exclusive with the philippine finance secretary. this is bloomberg. ♪

sophie: china will be in the spotlight with third-quarter gdp and other september data do in the coming hours. growth is expected to have weakened again cranking up the case for further easing. let's go to our china correspondent, tom mackenzie. what can we expect from the data? well, i'm here at the headquarters of the world's largest privately held fintech company, who have a real finger on the polls when it comes to the economy. i will talk about their views on how things are coming out later, but let me give you the forecast for this official data that as you say will be out 10:00 a.m. local time. the forecast is that you will , the consensus% forecast, is slow down from the previous quarter which was 6.2%, but berg intelligence's will actually see it drop to 5.9% -- bloomberg intelligence thinks

you will actually see it drop to 5.9 percent. domestic pressures but also external pressures in the form of those trade wars and tariffs. look atemand side, retail sales. they are expected to pick up marginally to about six point 8%. again, the consumer firmly in focus. you have seen things like auto sales contract for 15 out of the last 16 months, and then you have industrial production and fixed assets, both expected to come in relatively fat, but both of these are expected to point to the need for additional pressures, these domestic and external, continue. the economic slowdown come up in your exclusive interview? tom: it absolutely did. this again is a company valued at about 150 billion u.s. dollars, more valuable than

goldman sachs. they have about one point 2 billion users, and their products expand everything from micro lending to insurance. i spoke exclusively to the ceo about everything from the future of the company to the economy. on the economy, he says the consumer is actually holding up relatively well. they have not seen a takedown in terms of transaction volumes, and he's confident about the health of the chinese consumer. in terms of the trade war, though, he was relatively optimistic about the direction of travel. take a listen. >> a healthy relationship and the economy would be very important for global. i think we have seen progress on trade talks and we are happy to see that. tom: that was just a little taster of a wide-ranging interview. we talked again about future

plans this company. we talked about the dealmaking activity that they may be looking at and partnerships as well and their push into areas like green finance. plenty more to listen into when we play out the rest of this interview with the ceo of ant financial later in the show. looking forward to it. the slowdown in china and the wider trade war have become key issues for central bankers and finance ministers across asia and around the world. our global economic and policy editor kathleen hays is at the imf world bank meetings in washington. plenty for policymakers to discuss this week. kathleen: so let's get right to it with the secretary of finance for the philippines, already here getting some very busy meetings started. the impact of the trade war, what it has done to the economy, what the team is expecting to happen next.

>> well, definitely the trade war has increased the uncertainties in the market. philippines ise not a big trading country. however, we've seen export sales drop. a lot of our exports go to china and are put in packages or computers that go to the u.s. with the trade war, their sales are down, so our sales are down as well. the other thing we have experienced is that interest rates for us are a little bit higher than what we expected. i think it is the uncertainty factor in the market that is driving this. there are headwinds. although the philippines is well-positioned, we are still feeling the ill effects of this trade war. kathleen: how ill are the effects?

when you look at the third quarter, when you look at me be missing your growth target for this year, how much of it has to do with the slowdown in spending at the beginning of the year and how much progress have you made on catching up on the spending plan? >> on catching up, we have started to make very good progress. we are hitting our spending targets now, and we definitely will make a very good effort in catching up and will probably end up with a growth figure ,round 6% for this year although the first half was about 5.6%, but i think we are -- but again,it investments coming in have slowed. i think it is because of the uncertainty factor in the world market. kathleen: that is the thing that hits you if you are a big exporter or not.

do you expect to reach your debt cap this year? breach? kathleen: reach. two very different things. >> we expect to reach 3.2%, not breach. kathleen: do you need to produce some fiscal tailwinds? >> we are basically ramping up our spending. we have come with an agreement with our congress that we slow it down because of the delay in the budget approval this year we think will allow us to carry over for next year, so that is definitely part of our fiscal stimulus. kathleen: and that will involve using unused funds. >> yes. kathleen: when you mentioned interest rates being higher than expected in overseas markets --

i think that is what you are referring to -- what are you expecting a terms of tapping overseas borrowing next year? >> we will continue our borrowing program. again, we will tap the u.s. market around january or we will gond then the to the bond market and euro market. toward august, probably the samurai market. kathleen: any new markets? are you looking to diversify? >> not for next year, but remember that we just reentered the euro market last year. or this year, and last year we just reentered the samurai market. kathleen: that's right. another big story in your country is you shut down your first tax judging online casino. you are trying to bring more

foreign workers under the net. >> we just shut down our second one. we shut down another one. basically, we are going hard against people who are evading taxes. kathleen: is it working? they paid up. around 25 million u.s. dollars, and they paid out. kathleen: you have cracked down your second one. do you think there is more revenue out there? >> oh, yes. definitely. i think we have $40 million to $50 million a month we are getting to correct -- collect and we are nowhere near that sum yet. these really going after people who are evading paying taxes. kathleen: you are also pushing to raise taxes on e-cigarettes,

right? there have been reports now of aping-related deaths in the u.s. in theng-related deaths u.s. singapore and others have banned them altogether. does this have an impact on what you are doing, may be raising taxes or taking other steps? >> i think our legislators are .ooking at vaping a number ofegte with the and i'm sure their philosophical discussions will inform their actions, but i don't think we are going to ban it. our view it is too widespread in the philippines to ban e-cigarettes, particularly the vaping products.

kathleen: have you had any of this sudden observance of vaping deaths? people who have faked -- who have vaped a lot suddenly dying? >> we understand the people who have had health problems have been mixing their own and i don't think they do that in the philippines. mix your own concoctions to vape. kathleen: well, i have never vaped. >> me neither. kathleen: finance secretary, thank you so much for joining us. i hope you are having a nice start to all of your important meetings. >> well, it has been busy, but this is very important for us. thank you for having me. kathleen: it is very important for us having you here. we heard about everything from the economy and fiscal stimulus to vaping and e-cigarettes. i will send it back to you now. shery: thank you so much.

we do have an alert. we take you to president trump having live comments in texas. he is saying he will get phase one deal with china signed quickly. of course, we have word from white house economic advisor larry kudlow earlier today saying there is a lot of momentum an agreement on both sides. the speculation is we could see some sort of signing at the apec month.next president trump live in texas. let's get you a business -- let's get you a check of the latest business flash headlines. saudi aramco's ipo could be on hold again. the launch was expected to come on sunday, but it has been delayed and the decision was "abrupt." aramco was to have sold about 2% of the company at a price that would evaluate a $2 trillion and potentially raise

$40 billion. that would have eclipsed the $25 billion alibaba raised in 2014. plenty more to come on "a berankis failure." on "daybreak australia." this is bloomberg.

sophie: welcome back to "daybreak australia." lower. nudging let's switch out the board to check in quickly on aussie bonds this morning. we have the benchmark yield rising just about two basis points and bond futures under pressure, extending declines during the hundred-day moving average. the rba government -- governor said the economy is improving and the housing market has turned around. shery: with that jobless rate on

expect delay falling. now let's get to first word news with jessica summers. jessica: britain and the eu say they have finally secured a deal and there's no need for further delay to brexit. last-minute talks in brussels produced agreement on key issues including northern ireland's .tatus however, boris johnson still needs to in u.k. parliamentary backing, and his crucial northern irish allies have already said they will not support the agreement. >> i do think that this deal represents a very good deal both for the eu and for the u.k., and it is a reasonable, fair outcome and reflects the large amount of work that has been undertaken by both sides. >> this is a fair, a balanced agreement. it is testament to our commitment to finding solutions. it provides certainty where

brexit creates uncertainty. it protects the rights of our citizens, and it protects peace and stability on the island of ireland. jessica: u.s. factory output fell in september by the most in five months. it was dragged down by a strike at general motors as well as week global demand and the ongoing trade war. manufacturing production dropped the medianhan estimate in a bloomberg survey. germany is cutting its growth forecast for next year on the expectation it will continue to suffer from waning global demand and brexit. expanding 1%en down from earlier forecast of 1.5%.

president trump sparked accusations of conflict of interest on news he will host next year's g7 summit at his golf resort in florida. triggeredcement criticism he would be violating a constitutional prohibition against profiting from the presidency. the administration also said it may invite president putin to the event and that climate change would not be on the agenda. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. cuty: indonesia has a ready rates three times this year to boost growth and is expected to do so again. our global economic policy editor kathleen hays is at the imf world bank meeting in washington. how low can indonesia go? kathleen: we are going to ask

the deputy governor that very question. we were talking about bank indonesia and the economy when we met, and i think you sort of hesitantly opened the door to rate cuts at the end, but your growth forecast was cut a little bit by the imf, like every other country in the world it seems. exports have been hit pretty hard in indonesia as well. what do you see next? to cut? more room >> i think room for another cut is still open. looking at the policies already there, we also see the outlook for inflation is stable. i think we are able to make another cut as long as rates coming from global, rates coming from domestic will not destroy our capital. as long as we are able to meet the target, i think it is open

for us to make another cut. the second point, i think, we will need support. growth needsof the support of monetary policy. kathleen: it is important to put in context, you cut -- i mean, you raise rates 175 basis points last year, right? do you think this is something that over time will be gradually unwound? that was about the currency. in this environment, will it be about unwinding those hikes? >> with the bank of indonesia, we do not just rely on one policy. we make, like, a mixed policy. introduce an integrated policy framework. combining cuts with

accommodative policy. put all thatn we together, does it look like the forces are aligning come of the sun and moon and stars, for a rate cut at the next meeting? of >> yes. open. kathleen: what would stop you from doing that? >> if the current account deficit, there's two important things we always look at from time to time. kathleen: in the next week, when you have the meeting, assuming the currency is stable, keeping in mind everything you said about currency accommodation, can we pretty much assume a rate cut is coming? >> it depends. we make mixed policies.

we not only rely on interest rates. we also use liquidity policy. kathleen: you are saying besides cutting the key rate, you could do something else? >> yes. kathleen: what do you think would be the most likely thing you could do? >> it depends. gears, onewitching of the things that was tough on a lot of asian countries was the fed raising rates. how important is it to you when you are watching your currency and looking at your capital flows that the fed maintains its accommodative policy and cuts rates more? formula, we are forward-looking. we make two years setting policy decisions. we have already put all the scenarios of the fed.

they are already under our formula. kathleen: given the weakness in yourts, given the fact that have seen capital outflows in the past, is that a concern that you might be looking at as you consider if you might cut the key rate again so soon after recent cuts? thinghink the important if you're looking to balance the national stability of the country, we have to look better at inflows because we need to finance the deficit of the current economy. we are looking to make sure is attractive for

other countries. kathleen: the world bank warned of severe capital outflows from indonesia if risks of a trade saidauses severe shock, it risks could be larger than what indonesia has faced in the past 10 years. what are you doing to mitigate that kind of risk? >> many kinds of things. we prepare some monetary policies not only coming from intervention but in the bonds market, so we prepare with a hedging policy. with a lot ofnced outflow. during 2008, during last year, 2018. end, we are optimistic to maintain stability.

kathleen: what is the biggest risk and the biggest plus right now? exports down months in a row, economy slowing, trade war still raging. is that your biggest risk or are there other things you are concerned about? notxports will generate only to the investment side but also at the end to consumption. kathleen: how do you think growth will be by next year? do you think it will pick up? we will soon see the economy will be positive, at the end to accommodative prices. kathleen: so nice to see you again. we will have to meet again in about six months. i like doing it. thank you so much.

here at the imf world bank meetings in washington, i'm send it back to -- sending it back to you now. shery: you can catch our conversation with the internation president starting with then saturday -- indonesian president starting at noon on saturday. this is bloomberg. ♪

shery: i'm shery ahn to new york. sophie: i'm sophie kamaruddin in. turkey has agreed to an immediate temporary cease-fire in syria as u.s. vice president mike pence's hastily arranged visit to ankara. what do we know so far? >> today, vice president mike pence and secretary of state mike pompeo were actually in turkey. they had about five hours of negotiations with turkey's president and other turkish officials, after which mike pence gave a press conference to reporters, during which he announced that turkey had agreed

cease-fire.r pence percent during the cease-fire, kurdish troops would make an orderly withdrawal and that under the terms of the agreement, the u.s. would not impose additional sanctions on turkey. pence sent if the cease-fire proved permanent after that 120-hour timeframe, the u.s. would also lift the previous sanctions the trump administration had imposed. pence touted the agreement saying it would end violence. president trump himself also touted the agreement calling it a great day for civilization. turkish reporters cast it is more of a pause than a cease-fire and said turkey had gotten everything it wanted from the u.s., including the ability to oversee a safe zone within syria. nonetheless, president trump did deal,ery behind the saying it was what he sent pence and pompeo to negotiate and that was what they got. could be perceived

as capitulation from the white house. where does congress stand on this? what is the reaction? >> reactions have been varied from cautious to very unhappy. we heard a couple of lawmakers say they want to see if a cease-fire actually played out, but the majority of lawmakers we heard from at this point have been critical, including from the president's own party. sits onmarco rubio who the foreign relations committee said from what he saw, this was not a cease-fire. senator mitt romney, a frequent trump critic, gave a long floor speech denouncing trump's policies and questioning why the trump administration did not work out the cease-fire before withdrawing troops. of course, democrats were scathing. the leaders of the house and senate released a critical statement. nancy pelosi saying the house would actually still vote on sanctions legislation next week and throughout the day both before the agreement was announced and after. lawmakers introduced several measures to sanction turkey, to follow through on those sanctions. we heard from several lawmakers

that they expect those to at least be considered. sanctions still very much on the table coming from congress after this. shery: also making headlines, acting white house chief of staff mick mulvaney seemingly acknowledging president trump actually offered a quid pro quo for military aid to ukraine. he seems to be refuting that. what's going on? >> that ride. it was a very interesting press briefing at the white house. acting chief of staff mick mulvaney held a briefing to announce president trump's choice of a venue for next year's g7 summit, and he chose his own resort in florida. that alone sparked criticism of conflict of interest, but it was what he said later that raised eyebrows even more. he seemingly acknowledged that there was a quid pro quo, but he denied it was tied to investigating the bidens and said it was linked to investigating the origins of the russian investigation. as you said, he later released a statement denying that he had acknowledged quid pro quo.

he said president trump never asked him to withhold money over a server, which is at the center of this russia investigation. nonetheless, democrats were quick to seize on both of these things. democrat on the house intelligence committee who is one of the three leaders leading the impeachment investigation said things had gone from very bad too much, much worse, so, clearly, the pressure is increasing on trump after these events today. shery: thank you so much for joining us from d.c. the president of the asian development bank says any benefits gained from sift -- shifting supply lines in asia will be offset by the slowdown in china. i asked about the impact slowing growth is having on the asian central bank. >> i think there are rooms for central banks to lower rates

further. the philippines and india and other countries have already decreased the interest rate, and i think there's still room to do that. much room to policymakers in beijing have, given that the economy has so much debt? >> i think china has already economy witht the monetary policies and macro position policies. in essence, it is more accommodative to have more investment in the countries. these challenges from trade and lower investment are issues for them. rising debt level over china prevents them from taking significant measures. shery: how much would a miniature deal between china and

the u.s. and china if signed this year help asia? >> of course, asia has a certain reticence to such a dispute. china is growing at the pace of 6% and according to our forecast, it is down by 02 -- 0.2%. it is not bad because the economy will double in 10 years if we can keep it. of course, there is concern about the value chain destruction if this continues, but so far, the risk is being managed. shery: those supply chains are being redirected, it seems, away from china and toward other developing countries. will growth in those countries help offset some of the weakness we may see in china?

>> relocations of investment from china to such countries fromvietnam, they gain relocations of trade to the united states, but they are also suffering from lower growth in china. they can be shut down, but they have concerns about the future of the economy for the region. although at this moment, there [indiscernible] you missed any part of that conversation, tv is your function. you can watch past interviews and you can watch us live, dive into any of the securities are functions we talk about and become part of the conversation by sending us instant messages during our show. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪

qantas is set to test the world's longest ever flight this weekend with a 20-hour nonstop trip from new york to sydney. qantas is preparing to start direct connections between the two and also between sydney and london. ceo alan joyce told us how the ultra long halls it with his strategy. >> australia is a long way away from everywhere. we have some of the longest routes in the world. the first time australia and london were connected were direct service. the only place in the world that do not have direct service and that is performing exceptionally well, but the last frontier in aviation is to fly from the east coast of the united states to the east coast of australia and from london to the east australia. three test flights.

the first tomorrow from new york to sydney. we are testing pilots. they will be wearing brainwave equipment, testing passengers. we are going to have a new meal service, and lighting service. the whole idea is when you get on the aircraft in new york, we set the time to sydney straightaway and we reduce the jet lag. the food will have spices and when to keep you awake and it's time to sleep, the food is carbohydrates and creamy food to put you to sleep and the lighting gets darker. we have scientists on board measuring all aspects of the human body, to scale your rhythms at the level of melatonin in your bloodstream and we think we can make a really neat ip of this long-haul travel. sophie: it is going to be a science experiment basically in the skies. what demand is therefore a new york to sydney direct flight over london to sydney direct

flight? >> we think it is massive. had a 95% c after on for service were typically long-haul travel, you get 75% to 80%. people are paying a significant premium in business pull class of over 1000 pounds in the uk2 fly on that service compared to one stop. today, qantas, because it cannot reach new york, has a flight that lands in l.a. every day and goes on to new york and we feel it. we know they demand is there. we think there will be a premium for it and we think it could be really profitable for the business, but we still have a .umber of hurdles to get over shery: let's not get a quick check of the latest business flash headlines. losing its sweet spot in china after slowing growth last year.

growth in the u.s. was stronger, but the overall slowdown in asia contrasted the strong lvmh'sance by rival products. they put a stronger performance in the second half. sophie: tsmc feeling bullish after reporting quarterly earnings that beat estimates thanks to growth in demand from apple and huawei. is planning to spend $15 billion on expanding operations, a 50% jump on its previous investment plan. they say ongoing trade conflicts in theper a revival trade industry, but that is not being factored into growth forecast. >> we do not put that kind of in the world into consideration, although we think tradeny trade tension or

war between any countries will have a negative impact to the semiconductor industries. shery: tesla motors surged after jean-claude juncker set a brexit deal had been reached. luxury brand rallied most in a decade in intraday trading. it is a major boost for the stock which has still lost more than 20% in the last year despite thursday's big gains. in the next hour on "daybreak asia," lots more from the imf annual meetings in washington. we find out why central-bank easing is putting longer-term growth at risk. onking ahead to monday "daybreak australia," we will hear from the australian treasurer who is also attending those meetings in washington. plenty more to come on "daybreak: asia." this is bloomberg. ♪

shery: from bloomberg global headquarters in new york, i am shery ahn. sophie: i am sophie kamaruddin in hong kong, one hour from the market open in japan and south korea. welcome to "daybreak: asia." ♪ shery: our top stories today. breakthrough. boris johnson starts a hard sell of his new deal with the e.u. ahead of saturday's crucial vote at westminster. china says it is in close contact with the u.s. as they rk