haidi: i am haidi stroud-watts. kathleen: i am kathleen hays. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. ♪ haidi: here are the top stories we are covering. boris johnson prepares for a fresh attempt to deliver on an october 31 brexit and he may not have the numbers. china's topogress,

negotiator says talks have gone well and they are on course for a partial deal. the 20th weekend of protests in hong kong, targeting chinese owned his misses. -- chinese owned businesses. imfleen: coming up, the reading in washington including conversations with john freudenberg and others. u.s. stocksow ended, look at the big picture, ongoing trade war worries. lower across the board. one big name which was responsible was netflix, closing down across 6%. forecasters of cyber growth falling short. it hit the nasdaq 0.8% lower. johnson & johnson recalled baby powder that came up with traces of asbestos. boeing, questions by the faa

about what they knew before the max was reported. 4%.dow is down, s&p down there was good news. jpmorgan numbers better than forecasted. coca-cola was very solid. for the week and the second week, the stocks closed higher on average. positivity out of the negativity. what are you looking at? sophie: asian stocks going for a mixed start after a weekend of imf meetings with finance chiefs significant -- showing -- the conversation with the australian minister -- looking at the calendar, a check on trade from japan, south korea, taiwan and thailand. the indonesian president will announce his new cabinet after being sworn in for a second

term. ascking in on the pound boris johnson will have the courage to ask congress -- sterling above 129 but on the back foot after snapping a four-day gain. analysts sticking to bullish views. downside on a new deal brexit looking unlikely. kathleen: boris johnson will make a flat -- a fresh attempt to deliver on his pledge. supporters say he has enough votes to get his deal through parliament. the u.k. prime minister was formally asking the youtube delay until january 31. >> i will not negotiate a delay e.u. he you -- the neither does the law compel me to do so. i will tell our friends and colleagues what i have told everyone in the last 88 days i

have served as prime minister. further delay would be bad for this country. bad for the european union and for democracy. speaken: joining us to more on this, andrea horton. where are we now? 70 things have happened, he still doesn't have the fromratic union party northern ireland on board. he did -- agreed to the delay but didn't sign the piece of paper. what are we expecting for the big -- the week to get underway? he grudgingly sent that letter to the you. he didn't sign it but did comply . two things we need to watch after this session in parliament saturday where his vote did not make it to the floor. lawmakers thought in, voted for

an amendment that secured the fact he would have to ask for the extension. the european union grant this? the times of london saying they are poised to grant a three-month extension even if you hear rumors about frustration on what is going on with politics in london and there is the vote. the meaningful vote monday morning in the house of commons. on tuesday we could see the withdrawal agreement bill. this is critical. it constructs the time and how brexit would be implemented. this is where real drama takes place. you could have amendments about second referendums, the e.u. and the irish border. have been saying this in london for basically three years, it will be a crunch week but this does seem like a crunch week. we keep saying that and

we keep hearing that but it feels like the fresh impetus -- does he have the votes? it is a big gamble. as a prime minister yet to win a vote yet. we crunched the numbers and it looks like he has 62 members. he needs to persuade 61. this was bloomberg during the numbers based on what happened saturday. what lawmakers were saying and doing threading that debate. it is a very close vote. we heard from must -- some members of the cabinet. he is optimistic. saying regardless of the shenanigans that happened in parliament, it seems like they have the vote to cross the line. even if he gets over the line it will be drama in terms of the

amendment we could see especially from the likes of the dup, which he doesn't have on board. thank you. the latest on brexit area big week ahead. joining us now is the franklin financial services chief. great to have you. does this potential, looking at remove a risk, does it major source of wow in terms of -- woe in terms of risk appetite? >> the market has been digesting brexit for over 30 months. i find it hard to believe other reaction the market is going to care much. beennk a hard brexit has held through and priced in as much as possible. i don't think it is the outcome.

it is hard to believe we get much longer term reaction out of it. haidi: in terms of what investors are trading on, huge earnings week ahead. we have got amazon, mcdonald's, china mobile. is there a chance we might see price action on the fundamentals? yes. this is a big earnings week. we have 24 percent of the s&p 500 set to report this week. we will get a lot of information how a consumer is doing, manufacturing and industrials, financials coming out. we also have big economic data coming out. we have the existing home sales out tuesday, new home sales out thursday with flash pmi data and we will finish the week with consumer sentiment. because theed

consumer is the strongest part of the economy. it is important these numbers come out positive. it seems you based your optimism for the rest of 2019 avoiding recession. we have weaker than forecast retail sales numbers last week. are you positive on housing? it is a pic you are in favor of. >> i am positive on housing. mortgage rates have moved back down and we believe the mortgage rate will stabilize around this area for quite a while. if you look at the data that has come out with homebuyers, it has been strong. we think the trend continues. we like anything, looking at different areas around the housing market. the fundamentals are strong and continue for years. ishares: image and the home construction etf.

and itort-term finance is interesting because people look at a decline which we have started to see as a sign the economy is going into recession. these recreational -- you like these recreational vehicles. >> we believe the consumer is very strong and will continue to be strong as long as there are jobs. we have 7 million opened and 6 million looking for them. we believe the market will stay strong. we are not playing the rv sector . we are playing behind the scenes through a company called patrick industries. that is the way to play it. they play around manufactured homes. we also had good news with the trade tension front. not a great deal of progress, but we did hear from the top

negotiator saying constructive talks had taken place and we are getting closer to that first part of the deal. how significant would that be in terms of a breakout for u.s. stocks? is it something a moderate amount of positivity priced in? brett: it would be significant if they get a deal signed before next giving which the probability is over 60%. based on the information we are getting on that. issue. a very important it could remove a lot of uncertainty around the trade. that will translate into more positive outlook on ceo's. you look at the ceo surveys coming out, they are the lowest they have been since 2009. positive headway in removing that uncertainty will help out on. -- on capex.

kathleen: are more price hikes priced in? certainly the october rate cut, or is it the stepping stone for 3150 on the s&p 500? we started out with the forecast around 3150. i maintain that. there will be positive traction on trade going in to the end of the year. i believe the consumer holds up and the job market stay strong. thank you for joining us. first franklin financial services chief market strategist. selina wang. ministersobal finance and central bankers have pledged to use all of their tools including fiscal policy to amend what they call a highly uncertain outlook. the assessment came in a communique issued by the imf

steering panel. this capped a week in which the imf led a visit straight cut to the global growth forecast, with the weakest expansion since 2009. china's top trade negotiators say talks with the u.s. are making progress and both sides are working towards a partial deal. has been made playing an important base for agreement. people are trying to sign at the apec summit in chile. is not a appropriate level. -- is that an appropriate the -- is at an appropriate level. depreciation has been growing by market forces and shifts in market dynamics. it passed the seven level since the u.s. named china a currency manipulator.

friday after his arrest over allegations of insider trading. the vice president is accused of making nonpublic information three years in exchange for cash. it is the third insider trading allegations lost to goldman banker in the past 18 months. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am selina wang. haidi: plenty more to come on brexit i had as the u.k. accelerates preparations to leave without a deal. we are joined by jacob kierkegaard. kathleen: another weekend ofkathleen: water cannons and tear gas in hong kong after 20 weeks of protest. this is bloomberg. ♪ ♪

kathleen: i am kathleen hays. haidi: i am haidi stroud-watts. kong settors in hong fire to shops and parts of rail stations in what was the 20th straight weekend of protest. organizers estimated 350,000 people took part in the peaceful rally. stephen engle is on the streets. give us an update. stephen: we are in the tip of the peninsula here. this is one of the biggest and busiest shopping districts, usually full of mainland tourists but those numbers have dropped off after the 20th weekend in a row of violent demonstrations up and down here. we have an unauthorized protest

march yesterday which turned violent. you can see the aftermath of the violence behind me. here is the npr station. similar types of graffiti, free hong kong and no hate without no region -- no reason in english and chinese. more graffiti on nathan road. we burn, you burn with us. that is a common mantra throughout this for months. we had a number of different petrol bombs thrown by protesters. oftentimes targeting companies with china linked or perceived to have taken sides against the protesters. we had xiaomi's store, the mainland chinese mobile phone operator, one of their stores was attacked here as well as a snack marked. the chinese medicine company

here had a shop satellite as well as you should annoy you -- ashinoya operated on franchise basis. a number of fires that police responding with water can and tear gas. the reason we are on this corner mosque.d me is the main it was not targeted, but police cannons blue dye water firing to disperse protesters and some of it went into the compound. that raised concerns and anger by the local muslim community that police actions infringed on their mosque. the police put out a statement saying it was most unfortunate this operation caused unintended impact of colored water being sprayed on the compound.

kathleen: carrie lam under pressure, going to japan for the enthronement ceremony of the emperor. are the people understanding this or are they wondering why she is leaving hong kong? stephen: it is something she has done, about the second time during this heated time. she went up to the national day parade in the second day of october. the chief secretary was acting chief executive. whename situation today she goes up for the enthronement ceremony of the emperor in japan. trying to give the impression i would assume she is the leader of hong kong and has to carry out her other duties. she will be criticized for leaving at a time of increased violence. every weekend seems to be a time

of increased violence. we are seeing moves this morning closer to home in the aussie. look at the price action after westpac coming out with a note saying it is possible the reserve bank of australia will adopt an asset purchase program in 2020, half a percent as the cash trade lower bound -- this is adding to the chorus of voices suggesting what the government has alluded to in recent weeks. to be required. we will see asset purchases and qe despite the dip market of 21%. kathleen: potentially a very important question for the australian government. catch the interview with australian treasurer josh

freudenberg who says the economy can continue to run a record growth rate even as they push and keep pushing for a budget surplus. plenty more ahead. this is bloomberg. ♪

kathleen: the australian treasurer said the government needs to -- won't derail the economic growth. i spoke to him on the sidelines of the imf world bank meeting in washington. josh: i don't think they are mutually exclusive having a surplus and balanced budgets as well as having a strong economy where there is continuous economic activity. we are investing in infrastructure and providing tax cuts and looking at the supply-side of the economy, competition reform, deregulation, industrial reform whichee trade agreements

opened the door for australian businesses to millions of new customers. we can deliver the surplus and we are committed to that as well as seeing the australian economy continue its record growth. kathleen: i want to look at these issues of the free trade agreement with hong kong. what will it do for the economy of australia? at the same time with all of -- so much aroused by the hong kong protests, i don't have the words for it, what does it mean for the australian government's position on the protest? everyone is being asked that question. josh: we have been concerned by the demonstration, response, but we have seen play out. at the same time we recognize

having a good trading relationship and economic relationship with hong kong is beneficial. we have as a government entered into new free trade agreements with a series of countries. we entered into one with china, japan, korea, the transpacific partnership, working on one which will include india, the asean countries and china. only 26% of the two-way trading relationships were covered by free trade. today it is over 70% and growing as a number of other agreements we are negotiating come into being. kathleen: it is important to look past the protests and what it might say about australia's support? josh: we have been outspoken on those issues. we are concerned by images we have seen on the streets of hong kong. in terms of the economic

partnership, it will continue. you businessget flash headlines. softbank with a rescue financing plan which may value the offer share and company below $8 billion. that is a fraction of the $47 billion the soft -- start of commended as recently as january. the talks are fluid and terms could change. after scrapping the ipo, we work is considering rival plans from j.p. morgan. qantas was to begin flights from sydney to new york after completing its first test on sunday. the boeing dreamliner touched down in sydney after completing the 16,000 kilometers journey in 19.5 hours. passengers and crew were given a series of medical checks and pressure to analyze their experience. was a human guinea

pig. we will get his account of that marathon flight experience. we will get a health and well-being check. if you are away from a screen, you can find in-depth analysis on bloomberg radio, broadcasting from hong kong. this is bloomberg. ♪ this is bloomberg. ♪

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♪ .aidi: 9:30 a.m. in sydney the market open 30 minutes away. muted start, looking at downsides of about .3%. we finished lower friday. this after u.s. stocks on friday retreated despite flirting with record highs a few days prior. uncertainty when it comes to the brexit scenario and trade scenario but more likely we are seeing caution with investors given the big week earnings reports out of the likes of amazon and microsoft. i am haidi stroud-watts. hays.en: i am kathleen

you are watching daybreak australia. let's get to first word news with selina wang. boris johnson will make a fresh attempt to deliver on his pledge to take britain out of the european union october 31. his backers say he has the numbers to get his deals through parliament in a vote as soon as monday. saturday the comments approved a further delay, forcing him to make a formal request for extra time. the hong kong chief executive carrie lam goes to japan for a visit after a 20th straight weekend of protests once again turned violent. police used water cannons and tear gas as people attacked rail stations and businesses of chinese retailers. thousands of people were declared illegal. the indonesian president will announce his cabinet lineup

monday after being inaugurated for a second five-year term. inread the oath of office front of heads of state and representatives from 150 countries. he aims to eliminate poverty and make indonesia one of the top five economies by 2045. justin trudeau's liberal party has a narrow lead over its conservative rival according to the latest poll. of respondents favored the liberals. it is expected to be one of the closest races in the country's history with the winning party likely to command absolute majority. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i have selina wang. this is bloomberg. you very thank australia opening at the top of the hour. what are you watching?

sophie: looking at linus after the rare earth miner reported a drop in first-quarter output and trade tensions waned. this company planning to trim headcount in mozambique by 30%. also watching qantas, but -- expansion in domestic capacity even as investors are expecting a cut. the carrier will provide a trade update later this week and could unveil the extent of a scale back of 400 million australian dollars buyback. kathleen: let's move on to the imf downgrading and slashing its outlook for china gdp to 6.1%. i spoke to the asia-pacific director at the imf world bank meeting in washington and asked what is driving the slowdown. >> [indiscernible] china will grow

6.1% this year and 5.8% next year. china's growth rate is going on for two reasons. the pressure from the trade tensions. but at the same time china is moving from high-speed growth to more sustainable growth. they are reigning in domestic credit. they are more dissolvable -- desirable. definitely they are facing the large pressure of trade tension. last week is a promising sign, but we have to see. china's growth strategy can change. kathleen: china's growth is lower than what many people expected this year. , even if youwar get a little deal, the damage doesn't go away and confidence doesn't return, investment pick up in an instant. is it possible growth into 2020 could continue to be less?

>> it would be bad news for the world. piece more than trade truce. even for china's perspective, ,ven if a trade truce continues we believe china has policy status. they could rely on fiscal stimulus. at the same time they do other policies to offset. the problem is it will have a negative impact to move from high-speed economy to high-quality growth. that is [indiscernible] in terms of short-term growth prospect even if take -- trade tensions escalate further, they have a policy room to offset some of it. the imf asia-pacific director speaking to kathleen. president trump reversed course on his decision to host next summer's g7 meeting at his golf

resort in miami. ros krasny joins us. this reversal after what he calls irrational hostility. reversal,s a stunning in-- and he is very invested his properties in according to staff, mick mulvaney still sees himself as the hospitality provider in chief of the united states. also came republicans out against this. we heard from some republicans coming out against the move to hold -- hold the g7 at this hotel and there could have been pressure even from foreign leaders who would be the ones on the hook for paying trump and paying the company to use this of how youegardless

come down on legality in the u.s. i believe it would be illegal for many of the foreign governments to make those payments. it was an interesting case study . trump was surprised at the question from democrats and others. i don't know why. heis a case study in was getting advice from within the white house? maybe this is not a good idea, the optics are poor? stephen: a lot of things stephen: for him to be mindful. some aides were not happy with molding his performance when he first announced this hotel decision, then said to much about ukraine. is his job still safe? ros: it depends on who you talk to in the white house. our reporters are blanketing the how will bend out any's performance has gone down.

some say trump was happy with, happy enough with his performance thursday. there is one thing mr. delaney said was get over it, get over that ukraine phone call. it is turned into promotional t-shirts. others are saying trump was not back with mulvaney's walk a statement or his comments on fox news sunday today. status that mulvaney's of the white house has gone up and down the past year or so and it is typical of trump. he will reach against people in private and then they will come back into the fold. .t is a big issue for him the things he said about ukraine and the quid pro quo thursday have direct potential legal implications for trump. we are watching very closely to see if he stays on. he is trump's third chief of

staff. maybe it is not a good time to dump him and come up with another person. trump i am sure will do what he feels is right. haidi: the trump team in the meantime appears to be doubling down on its syria strategy. do we have expectations when it comes to the u.s. brokered truce? what are we watching for? interesting that this ends on tuesday. what will turkey do? i believe turkey's president had some tough commentary over the weekend about what he intended to do. u.s. policy at the hands of turkey's leader which is a situation that leaves many in the united states, lawmakers and others, quite uncomfortable. ,e heard from mike pompeo today talking of the peace agreement

that is being reached -- talking up the peace agreement that is being reached. lindsey graham, a huge critic on this policy, he said, trump is thinking out of the box. this would have a good end. whether he is right or not it is unclear. most in congress are opposed and everybody is watching tuesday. thank you for taking the time to sort this out for us. plenty more to come. this is bloomberg. ♪

>> one thing has changed. >> there is an agreement. >> the best deal that could have been achieved. >> it was difficult. >> british parliament -- rex potential. >> all of these questions.

>> there would be a transition to a new economic relationship. >> alternative of no deal brexit. >> a problem for the rest of the world. >> you're seeing what we have seen in the u.k. >> people are uncertain about the future. >> uncertain effects of brexit. >> chaotic no deal brexit. >> having a consequence. >> maintaining momentum. >> truly down. >> fiscal now to take lead. kathleen: from imf in d.c. weighing what is next. let's get more from jacob kierkegaard. very exciting couple of days. this amendment from sir oliver

left wing, one of the 24 conservatives boris johnson kicked out of his cabinet, he led this fight to get more control over this process. did he pull the rug out from under boris johnson and does it strike you as the appropriate thing to have done? >> he may have. depends on who has the numbers. what the amendment -- it is two things. applyuires boris johnson or report -- or request an extension of article 50, a but equally important it made it clear that the so-called implementing legislation or the withdrawal agreement has to be passed first in the british parliament. aat means that maybe there is majority for the current withdrawal agreement as it is implied by boris johnson's deal

with that you, but maybe there is a majority for another type of withdrawal, one that maybe involves a permanent customs union for all of the united kingdom or maybe even a second referendum. we don't know. it is going to be a big fight kind of about what amendment is going to be voted on when. it is fair to say the democratic -- the northern irish dup have made it clear they have no commitment to the deal. he is a minority government. just maybe they will decide a second referendum is better for them than boris johnson's deal. we don't know. kathleen: a permanent customs union for the u.k. to be part of in the e.u. is exactly what theresa may proposed in one of

her versions to keep this question of how to keep ireland, northern ireland, republic of ireland together. it would be shocking they would vote for it. the democratic unionist party doesn't show any signs of giving up what they want which is no borders, no checks. jacob: they always said their red line, the soul blood red line is one of them said was there would be no regulatory border in irish see. -- irish sea. obviously boris johnson's deal does not of that. it is the opposite. they view it rightly as a stab in the back. for them to turn around and spat -- and stab boris johnson, it might get six. but it is certainly within the realm of the possible.

it is incredibly shakespearean because labor has said it doors were open to the dup for a chat. what would that ownership look like given the dup has said it is not interested in another public vote? that was before boris johnson's deal. when the amendment passed, you heard the dup leadership in westminster say they were going to look closely at all possible options. i would assume it includes a possible second referendum. the basic reality is boris johnson has a minority government. there is an alternative majority in the british parliament. what this alternative majority is up to, including the dup, we will have to see. boris johnson and downing street are going to spin it as if they

have the numbers, but theresa may said that three times. saturdayment passed on against the wishes of the government. we will have to see where the numbers are. chaos is something we have become accustomed to. thisve been talking about 20 weekends of protests and violence. globally we are seeing protesters and discontent. people are looking up the hotspots of protest globally. we saw in beirut, also saw situationle and the in catalonia, hoping to get that graphic. the global malcontent. what is a theme looking at these centers of discontent? almost as if young people globally are upset. upob: it is the boiled

resentment you will see when the global economy is slowing down. the pie is not growing as fast as you would like. takeis when people find to their grievances out in the open in a violent manner. the match it takes to light the fire in hotspots around the world is going to be, the fuse is shorter. kathleen: tell us where we are with syria. trump is pulling troops outcome a safe zones. the kurds say it is not safe area the turkish resident says it is. what does this mean for the middle east and what will happen next? the united states has zero credibility with anybody in the middle east. this comes less than a couple of months after the united states

chose to do nothing when the saudi oil facilities were attacked. --arly against the wishes there is no doubt the saudi government expected the united states would take military action in response. they are seemingly pulling out because of some strong words from erdogan. nobody is going to take donald trump serious in the middle east going forward whereas when vladimir putin says i will stand by you no matter what, he is going to look more credible. russia.a victory for a victory for iran. it is a foreign-policy disaster for the united states and one that will haunt the united states for many years. haidi: is it a policy disaster for the e.u.? does it highlight its

irrelevance when it comes to security policies in this part of the world? jacob: no doubt. the e.u. has never played an independent role. some have troops on the ground in syria because they are members of nato. the e.u. has no role. the only thing they can do is to decide whether or not to keep n'sing up erdoga collaboration on the refugee issue. if he is at the same time waiting a vicious war in northern syria with lots of civilian casualties, it is a policy that may be more difficult than it has been. fundamentally the e.u. is and will remain irrelevant. always a pleasure to have you. jacob kierkegaard, joining us.

you can get a roundup of stories you need to know to get monday going in today's edition of daybreak. go to dayb on your terminal. also available in the anywhere app. you can tweet those settings so you only get news on industries and assets that matter to you. this is bloomberg. ♪

haidi: the longest commercial flight in the world took place over the weekend. qantas operated the direct route from new york to sydney, taking almost 20 hours, marking plans for a new long haul route. our reporter endured this and survived the first flight of project sunrise. how are you feeling? >> i am feeling pretty good. i am surprised. i have done that before with a stop and have felt worse.

i am surprised i am not more beaten up. it was a long flight. 19.5 hours.n it was a fascinating expense because it was a research flight, a test project for project sunrise which is commercial services between new york and sydney and london and sydney. it was a dedicated laboratory finding how we can make these flights as easy as possible on passengers in terms of lightening the load, jet lag. you can get off at the other end and be functioning rather than a mess. person's one functioning -- i read in your story that they keep you, they want to make you stay awake the first six hours because they think it will adjust to jet lag. what i have learned is sleep whenever you can and then you can be in better shape to do

with when you get there. how did it affect you? >> it is interesting because we p.m..ew york after nine 4 we had done a days work, the end of the week. a lot of us were tired and we had to stay awake. it was gone 4:00 a.m. in new york for the lights went off. it was approaching 204i don't -- 24 hour cycle. that was the hard part being forced to adjust to the destination time. that is the hardest part of this experiment and how do you keep passengers awake if you are going to turn to sydney time or wherever. they thought hard about this. we will giveid them spicy food, vibrant food to keep them awake and get them stretching and passengers stretching. there were six sort of guinea

pigs. they were under a special schedule and routine to follow. some it was easy, others prone to sleeping. the advantage is once you got to 4:00 a.m. new york time, everyone is retired. with that, everyone was asleep for a long time. haidi: they would need new aircraft first. >> it is not a certain thing. qantas needs new aircraft, a new deal with pilots and the crew because they have got to work longer than 20 hours for this route. things have to come together. this is one of the building blocks. haidi: welcome back. our reporter there back from project sunrise, a remarkable milestone troop -- trip for aviation. ethylene and i will be around the next few hours -- kathleen

and i will be around the next few hours. we are looking at the start of cash trading in sydney, down .3%. the aussie dollar moving. this is bloomberg. ♪ ♪

--i'm haidi stroud-watts and sydney. good evening. i'm kathleen hays. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak: asia." ♪ haidi: our top stories this monday. oris johnson prepares for a fresh attempts to deliver an october 31 brexit. he may have the numbers ahead of