idi: welcome to "daybreak australian." sophie: we are counting down to asia's major market opens. shery: the top stories we are covering in the next hour -- earnings galore in wall street. tesla post its first profit in amost a year, but there is rougher road for ford and caterpillar.

boeing debt doubles and a quarter that saw its largest cash burn a nearly 25 years. while mark zuckerberg faced a anotherional grilling, cryptocurrency project tells us why it is the future of finance. we are seeing a little bit of upside for u.s. futures gaining .1%. this after u.s. stocks rose in the regular session. we have the s&p 500 finishing about 3000. we have the energy sector leading the gains. we have oil touching the $56 a barrel level for the first time in more than a month after we saw u.s. crude supplies unexpectedly dropped. we also had boeing leading the gains on the dow, which was a .2%, after it announced it does expect the 737 max to be cleared to fly this year. this really offset some of the with the semiconductor index falling the most in a week

after we had texas instruments come out with a weaker than expected forecast. we nasdaq was up .2%, and had really a very busy session when it came to earnings. 20% of s&p 500 companies are reporting this week. even in the after hours, we had some earnings results, including from ford motor and microsoft that we will dissect in a few minutes. for more on how things are shaping up in asia, sophie. sophie: kiwi stocks gaining ground after the worst day in a year. elsewhere, asian futures hinting at modest gains. we have third-quarter gdp due today as the south korean government attempts to support the economy while the export growth engine spiders. hyundai motor and cosco among highlights. fortescueng,

reporting a 9% quarterly drop in iron ore shipments, but it did maintain its outlook for iron ore. also watching asian machinery stocks after caterpillar cut its profit and production outlook to match dealer demand. from indonesia later today, consensus is for a fourth rate cut from bank indonesia. plus, here in hong kong, trade data is due before next week's gdp report and that is likely to show continued drop in imports and exports for september. plus, we get pmi ratings for japan as well as australia. busy thursday ahead. we are just getting breaking news on google. the tech china's accused of creating spy tools to squelch worker dissent according to a google employee, outlining concerns about the new tool in a memo. google says new software is designed to reduce spam.

the company being accused of creating a new spy tool to squelch worker dissent. we will be getting more details on that story as they become available to us. in the meantime, let's get you caught up to date with first word news. : the u.k. has left boris eu ambassadorsas eating a brussels agreed to give the u.k. more time but could not decide on how much. a decision has been deferred until friday. president trump is lifting sanctions against turkey after it complied with a cease-fire agreement with kurdish forces in syria. decisions it shows his to withdraw u.s. forces from northern syria has paid dividends, but the move was criticized by republicans and his own envoy. ambassador jeffrey told a house

committee u.s. forces had not completed their mission of defeating the so-called islamic state. hasbook ceo mark zuckerberg warned congress that if the u.s. does not take a lead in tech innovation and cryptocurrencies, then china will. zuckerberg faced a grilling from lawmakers on the house financial services committee over fact ads,ing permissible preventing manipulative videos and online child exley tatian, and he defended plans for libra 's cryptocurrency. >> this project is too big for any one company to do on its own which is why we set up with a number of other companies and nonprofits. it's a very complex project, and , as you say, it's risky. ika: google says it built a quantum computer that performed a calculation and 200 seconds that would take the fastest supercomputers about 20 years. quantum computers rely on qubits

which can be both zero and one at the same time, but ibm researchers have disputed of google has really achieved something that normal computers cannot. 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 ritika gupta. this is bloomberg. shery: thank you. there's been a ton of earnings in both regular and after hours u.s. training sessions. let's turn to su keenan with a wrap of all the action. we had a mixed bag of earnings. what did we see in the regular session? su: mixed bag indeed. one analyst said momentum appears to be slowing sharply and there appears to be concerned about earnings growth and international companies. even though we saw stocks rise on the latest numbers, you definitely saw the tech sector weighing on the indexes.

stocks of semiconductor chips were down almost 2%. let's take a look at some of the big movers. notice texas instruments is at the top of the list. huge decline as results sent chip stocks tumbling. they do blame trade tensions for making customers more cautious. morgan stanley was surprised that the magnitude of the weakness. boeing coming out with fairly positive news about the max jet returning, at least in their view, and offset by some loan concerns. caterpillar also getting a big boost, climbing as traders seem to welcome the move to cut production. clearlystruments news put the drop on chip stocks. you will notice it has been the gauge of semiconductor stocks, hitting up against resistance. in improved and fell almost 2% of the latest session. one more round of earnings. take a look. look at the big swings in some

of these, even though it is on with its rebound or restructuring, it is disappointing. hilton came in strong. boston scientific crushed it, in the words of one analyst. to polemics it can having a mix of concerns that put pressure on that. >> forward grabbing the spotlight. ford fell almost 6% on the restructuring program. earnings.ix of microsoft beating the strong is that the earnings. we look at the number of earnings that were out there. even a disappointing with holiday sales. notice tesla also coming out with extremely strong results, but if we go to ford, they cite slowing volumes in china as one of the concerns. they clearly cut the revenue outlook or their profit outlook, and that is putting pressure on the stock. in fact, they cut $500 million off that full-year forecast.

we will have more details later in the show. shery: thank you for that. looks set to cut rates for the fourth time this year and south korea braces for what could be a lackluster gdp report. kathleen hays is here with more. let's start with korea. we watch south korea because it is a bellwether for global trade, global tech. what are we expecting? kathleen: 11th biggest economy, fourth biggest exporter in the world. you know what they say in baseball, they say hit over in boxing,-- or it's punch over their weight. gdp unchanged. our bloomberg economics team exit will rise a bit. why do i want to show you this chart? here is where growth was in the .ast report, just over 2%

the current median forecast for the year actually sees it going down below that to about 1.9% and picking up again next year. the problem is you have to go back -- when you get below 2%, you have to go a long way. basically the middle of the financial crisis to see anything looking like this. you are looking at shoppers in korea right now. pretty decent job market, people are making money, spending money, and of course, you have also got more government spending, even an additional supplemental budget in august that should help. love this chart because it is simple and tells the story so easily. south korea's exports year over year are down 10 quarters in a row. as you just mentioned, if korea's exports are suffering, they are probably suffering across asia. bank of korea's governor said he things additional tariffs are .urting korea even more

have bank indonesia meeting today. when you spoke with the governor at the imf, he kept the door open to another rate cut which is very much the artist expectation. how do they justify that? kathleen: i thought after three and a row he would say we will be careful and watch and see what is going on, but he did keep that door wide open. they are expert dependent, he said demand remains there growth risk and he himself said the door is open to a rate cut today. let's listen. >> i think room for another cut is still open. some accommodative policy is already there. outlook.e i think we are able to make

another cut as long as the risk our budget.troy kathleen: anoth unexpected jumpe trade deficit. again, exports also down 10 quarters in a row, but their current account gap has narrowed just a bit. they had tot year, raise their key rate five times because they were getting so beat up. said that'sovernor another reason why they can go ahead and move now, so it will be a bigger surprise than ever if for some reason they change their mind and do not move. it looks like it is pretty much a done deal. kathleen hays there with a preview of bank indonesia laid out today. after more than six hours of testimony, mark zuckerberg is yet to convince lawmakers that

facebook can be trusted. shery: up next, tesla shares soar as the company makes an unexpected profit. this is bloomberg. ♪

shery: you are watching "daybreak australian." tesla start jumping in late trading after his surprised by posting its first profit in more than a year. give us a breakdown of what you think the numbers look like? >> first is they are profitable, and that's one of the big things everybody is looking for. second is they opened a shanghai china factory which opens to than the world's largest car market and also the world's largest electric car market because china has mandated they

want to be 100% electric by 2030, which is not that far off. they still increase production. even though they missed their goal of think 100,000 cars, they came close in my view. a concern that revenue is slowing? does that say something about where tesla's growth can come from in the future? next big thing for them will be the y. haidi: i want to throw at this chart looking at gross margin. that is why we have seen the stock which $306, last time i checked, in the session today. in terms of gross margin, can this be maintained? it seems like largely we saw the quarter impressed on the back of cuts.retty serious we have had some restructuring

of internal departments as well. is that a sustainable way to drive future growth? you think most importantly, want to see unit growth and then you want to see revenue growth, and of course, we want to see profitability. to me, what matters is net profit, not so much the gross profit, and i think over time, the gross margin may contract slightly, even as the mix toward lower-priced cars including the letter three -- including the 3 and eventually the y starts to lean toward cars and margins may come down, but they continue to experience very strong demand for their cars. they do market, and they have proven again and again to a lot of skeptics that it's a great car and there's a strong demand and a big market for. one of the sort of perennial concerns was the production bottleneck and what is happening with the pipeline. that was really addressed in an

up way. in the investor letter or the release today, they are ahead of schedule for the model three factory in shanghai and also had a schedule when it comes to production. model y do you expect them to hit production targets shanghai, for example, by the end of the year? plex i think the key is demand. they would rather have a production bottleneck with strong demand than the reverse. they continue to improve their capabilities. the new factory in china is a major game changer, and they inll have a lot of capacity the fremont factory to continue to ramp reduction. quick they kept emphasizing how cheap the factory in china -- how cheap it is to make those model 3's in china.

should we be concerned about the pressure on margins as they gravitate toward lower-priced models? about not that concerned margins. overall, a lot of people on wall street look at gross margin, and often, gross margin is as important as net margin, and that, i think, will come as they continue to increase the operating efficiency of the company and also amortize operating costs over more and more cars. about the fact that trade tensions between the u.s. and china continue? are you concerned about backlash for retaliatory tariffs? an environment of de-escalation of trade tensions. both president trump and chinese president xi need a trade deal. while they are both kind of playing the political angle on it, i think we have already started to see the first phase -- as president trump calls her, phase one, and president xi in china is under a lot of pressure

to make a deal because since this trade war began, china's stock market and economy has plummeted, recording the lowest gdp growth in 20 years this quarter. i think we will see a de-escalation of tensions so we will not experience that kind of backlash. also a bitt it was telling that the investor letter was not signed off by elon musk. is there a sense he is taking more of a low-key, low-profile approach these days to leadership? everdon't think you would see him take a low-key or low-profile. he is definitely the face of the company, definitely the driving force of the company, and i don't think there is anything low-key about him, which is part of his appeal and part of the .ppeal of the company >> i really cannot imagine low-key and elon musk knowing in the same sentence. thank you for joining us.

you can also turn to your bloomberg for more on tesla including updates from their earnings call beginning at the bottom of the hour. get commentary and analysis from bloomberg's expert editors. this is bloomberg. ♪

>> president trump seeking to take credit for a cease-fire in syria, painting it is a victory for his unconventional foreign policy. as part of the agreement, he removed u.s. sanctions imposed after turkey launched its military operations. liftedtions will be unless something happens that we are not happy with. this was an outcome created by us, the united states, and nobody else. d.c., ouret over to reporter. greg sullivan joins us. the lifting of the sanctions, the latest news, trump really

kind of saying, "well, i told you so, this was the right thing to do." is that going over well? victorytrying to claim over a cease-fire, but is not quite landing with lawmakers on capitol hill. while trump is lifting sanctions and saying the cease-fire is permanent, lawmakers' reactions range from skeptical that this is a deal that will hold, to downright critical. some republicans, even in his own party, said it appeared the deal benefited russia and turkey more than anyone else. what is interesting also is at the same time that we have trump trying to take victory for this, we heard from his envoy to syria on the hill, and he warned the deal was likely -- the deal could lead to the resurgence of the islamic state. he also said that in northern syria, some 100 detainees for

the islamic state had escaped, which seemed to contradict what president trump said when he said they had been largely recaptured. >> implicit criticism coming from his own envoy to syria. what does this mean for other now that sanctions president trump has lifted his sanctions? did one hedent trump would be imposed sanctions if turkey made him unhappy. in congress, it's a different story. house democrats say they are moving forward on a sanctions bill, but on the senate side, ame republicans expressed little more caution. senate majority leader mitch mcconnell actually tamping down expectations saying sanctions should not be the first, last, and only resort. unclear what will come from congress, but there is some movement and some caution to see how this deal actually plays out. >> on the impeachment front, it has been a pretty busy day. secretary assistant

of defense was scheduled to appear before the house this morning, but there was a delay because we had a group of lawmakers disrupting proceedings, essentially with the president's own blessing. what was going on? hear from set to laura cooper about delays in military aid, but her testimony did not start for nearly five hours because about two dozen republicans stormed the secure area where democrats are holding the testimony. these are areas that are supposed to be soundproof and secure from foreign adversaries trying to intercept things. lawmakers usually have to leave theseonics outside, but lawmakers, some had met with from supplier and explained their plan to do this last night, and he appeared to give them his blessing. today, they went in, basically made their way past security and according to lawmakers, created quite a scene. republican lawmakers have frequently complained they are locked out of some of these hearings because lawmakers not

sitting on these committees are not generally allowed to be in it, but democrats have vowed they will hold public hearings at some point after this initial phase of the impeachment inquiry. >> thank you so much for that update of everything going on in washington. let's get a quick check of the latest business flash headlines. wework will spend the next month putting together a plan that will prioritize profit overgrowth including job cuts. the company's new executive gives staff and overview of their projection in the first meeting since wework announced a takeover by its largest investor, softbank. >> india will spend about $6 billion on two unprofitable state-one telecom companies in a bid to help them take on competition. the government is combining the two companies as part of the plan.

coming up next, we get a reaction to bowling -- bowling -- boeing earnings. this is bloomberg. ♪

>> it's 9:30 a.m. here in sydney. the market open is 30 minutes away. big earnings for investors to pass, u.s. stocks ending moderately higher. shery: you're watching daybreak australia. let's get to first word news with me ritika gupta. planning toa is sell euro-denominated bonds amid a slump in borrowing costs in the currency. it would be china's first euro bond issuance in 15 years. .verage yields are below .5%

china returned to the dollar bond market two years ago after a gap of about 13 years. meanwhile, china is taking another step to opening up to foreign investment. it will allow foreign firms not already engaged in the investment business to conduct equity investment in domestic companies. it is the latest in a series of moves to make it more attractive and convenient for foreigners to invest. earlier this month, regulators announced the timetable for foreign financial firms to take full control. a pro establishment lawmaker in hong kong has confirmed beijing is considering a plan to replace carrie lam as chief executive. he says he has information the chinese government is considering candidates to fill hong kong's top job next year. >> it is a political rumor out of a terrier motives.

potential governments will firmly support chief executive carrie lam and the hong kong government's administration to stop violence and restore order as soon as possible. ritika: russian president vladimir putin has courted 40 leaders of african countries. .e negotiated deals russia is following china in expanding its influence in the region. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. >> thank you. australia opens at the top of the hour. sophie: qantas this morning reported a 1.8% yearly rise in

revenue thanks to international operations offsetting domestic weakness and measures are being taken to mitigate the impact from hong kong protest, which have been seen denting profit. fortescue keeping guidance for shipment, they said the share buyback program will be renewed for further 12 months. and a drop in gold and copper output this morning, but they had boosted full-year guidance due to its canadian operations. the acquisition is expected to dent free cash flow in the first half of fiscal 2020. star entertainment reported a 1.5 percent rise in group domestic revenue for the july 1 to october 21 period with an rebate revenue area. crown resorts on the other hand saw a yearly drop in program turnover making for game revenue that came up about 2% while

non-gaming revenue was broadly flat. this morning, crown also responded to allegations of corruption around the casino operator's international vip program which will be the focus of public hearings next week. the chairman saying that illegal activity will not be tolerated. for that.nk you it was a seesaw day for boeing shares, almost doubling the size of its credit facilities and saying it's troubled 737 maxygen at will win clearance to fly again later this year. analyst for jaffrey joins me on the new york studio. great to have you with us. 737ll depends on when the max comes back, but i wonder if they will get clearance from the faa, especially after last week's bombshell instant messages revelations showing hesitation over the 737 max .ears before the crashes

>> what we actually saw last night which was pretty positive, was an faa administrator, that he received the final load for the software update. what happened was in june, a softwareitted system update. the faa came back and said it needed another system upgrade, and what is going on now is the final certification submission. friday, the faa seemed angry and upset for boeing. shery: how much will this hurt cash flow issues? >> is the single biggest driver for revenues and earnings for the company. we estimate 30% growth margins, so it is a big driver. what is happening now is q3 free cash flow was about $3 billion because inventories are sitting on the balance sheet, essentially getting zero advances for the 737's that you are building up. want to throw up a

quick chart looking at how closely the ties between the fortunes of the 737 max and boeing are timed. this sales growth has essentially been held back by the 737 max. you have airbus in purple really going in the opposite direction. in terms of the, i guess, damage to reputation and sentiment, is it going to take them a long time, even after the regulatory issues are addressed? is happening in terms of narrowbody production, obviously, you have a hold with the max grounded. you have not seen many orders today or actually seen net orders below zero to date because you have seen some cancellations but not a significant amount of cancellations, to be quite honest.

on the wide-body side, that is where you have seen some hints and boeing cut their production today. they are producing those at 14 per month. when you think of global wide-body production, there's -- 38 produced across boeing and airbus. they have not seen a china order and almost two years, and that is why they're deciding to cut their production rate at the end of next year. of thehe chinese side story going to be dependent on how quickly china can ramp up homegrown production? the 787, it is important because it is about 20% of deliveries to date have been to china, so it is an important driver of demand for that aircraft. in terms of china's competing is not a there competitive threat when it comes to wide-body's. a sense that

perhaps chinese orders were cut back due to trade tensions with the u.s.? >> sure, i think significantly cut back by trade tensions. you're also seeing the wto trade agreement with tariffs being put on, so that will probably put pressure on european orders. airbus will retaliate back, so you are seeing macroeconomic factors impacting trade. investors need to hear to get reassurance that boeing is going in the right direction? >> i think they want to know that boeing is implementing steps to make this a sabr -- safer company, to not have accidents happen again. they have done several things, they have created committees, they have revamped the board a little are putting those steps forward, and i think investors are looking forward to that as well as the max getting up into the air. one of the things we were hoping for today was the 787 rate cut as well as the triple x, another wide-body aircraft being delayed

. those were two negatives being taken off the table, and i think that has helped the stock work in the morning, and then we will look forward to the max. >> does what is going on with the loan books concern you at all? >> we put out a report yesterday looking at liquidity. we looked at they are estimating a run rate free cash flow outflow of about $3 billion a quarter. how long could they sustain this production rate on the narrowbody's? you are still paying suppliers, but your customers are not paying you. we said you could sustain this production of 42 a month for the next two quarters. takenrse, boeing has steps to take out an additional credit facility, so we think they have access to liquidity that will not be a problem, but, you know, they want to keep a cash balance on hand, of course. >> thank you very much for

joining us. don't forget if you are away from a screen, you can always find in-depth analysis and the day's big newsmakers on bloomberg radio. we are broadcasting live from our brand-new studio in hong kong. this is bloomberg. ♪

>> is it a currency? rua bank? what is this association? >> it's a very complex project, and as you say, it is risky. >> do you consider libra to be money? >> i consider libra to be a payment system. >> it's like me having my money in wells fargo bank. >> you could think about it that way, although we are not a bank. we are not applying for a bank charter -- >> but that's the problem. that is what we are facing here. >> my commitment is that we are not going to launch the libra

payment system here or anywhere else around the world until we relevantpproval from u.s. financial regulators. >> the american competitiveness angle and competition with china is a national security issue. >> china especially, they immediately kicked off this public/private partnership with some of their biggest companies in order to raise to try to build a system like this quickly. >> will it be possible to conduct anonymous transaction using libra? there's a whole host of problems. will libra allow anonymous transactions? >> it is an open question. >> it's pretty hard to stop anonymous trading. have i missed something? >> i think this is probably more of a policy issue in question. >> as your code currently exists, can you transact anonymously with libra? >> it certainly would be possible to build a system that would allow that. >> i want to ask you a very simple question -- are you a

capitalist or are you a socialist? i wouldessman, definitely consider myself a capitalist. >> frankly, i'm not sure we have learned anything new here. >> that was facebook ceo mark zuckerberg testifying in front of the house financial services committee. joining us to discuss that hearing, we are joined by the founder of techonomy. it essentially turned into open season for the airing of grievances relating to facebook technologies, and i expect you will say i told you so. you thought this was exactly how this would play out. >> i think i said it on bloomberg last week. anybody who is aware of how the worldviews views facebook, which seems to be pretty much everyone except for mark and sheryl sandberg, would have known he would hit a firestorm by going into that hearing, and

it would be on far more issues than just libra. shery: one of the questions, i think the committee chairman maxine waters said you guys should stop working on libra until you fix all your other problems. is that a fair point? >> it is a fair point. there was a debate inside the company at the time they announced libra about if it was a good idea to even proceed getting soy were much pushback on so many other issues, and obviously, a system of money which is so much based in trust is a very risky thing face of ann the epidemic of mistrust that already afflicted them. there's tons of reasons why one should be cautious about trusting facebook, and even though they set this thing up, libra, if it were to ever happen as an independent association they are just one of many members of, everybody knows it

is their idea. they are the ones who will capitalize on it the most because they have the 2.7 billion people around the world they can deploy to. do you buy into mr. zuckerberg's china argument that if facebook does not do it, china will rise in dominance when it comes to this fear? think there is something to it, but it does not matter much. i think theready world's biggest payment network and it's chinese. i don't think a chinese cryptocurrency would necessarily do very well outside of china. we don't know. anyway, if there really was a cryptocurrency in the way they are talking about libra being, it would not matter much who owned it or who controlled it, but these are such speculative questions. the u.s. is in a text battle with china -- that's true -- but facebook is facebook. they are the ones going up against china here, not the

united states. facebook has not invited the u.s. government to partner with them in developing things which probably would be the only step they could take that would allow it to occur. he has said he would not do it unless they allow him to, but he is not really bringing them into the process, which, frankly, i think he should have done long ago. think there is a broad understanding of the u.s. government as you see this congress testimony being carried out, of what libra entails? >> i think some of the questions were foolish and ignorant today, but many were also very intelligent. i think there is a wide span of knowledge about tech in general and cryptocurrencies in specific among the house financial services committee members and people in congress. i do not fault congress on not understanding this stuff. i think they were asking at good questions. asking if zuckerberg is a capitalist or socialist seems off the point, as you just showed. i do not know why that

republican congressperson asked that, but i don't think the questions were stupid. i think there's a ton of good very basic questions to ask facebook right now about if they can be trusted, and many of them were asked. the question doesn't show where lawmakers are coming from in terms of how they feel about facebook and probably how they feel about mark zuckerberg as an individual. ?oes that taint libra >> i don't think it does. if anything, right now, facebook is perceived as being on the side of republicans. the absolutism of free speech he has been pronouncing, the speech at georgetown last week and "the wall street journal" op-ed and other places basically serves the interest of people who would more or less deceptive political advertising which i think it is generally acknowledged is more likely to happen from the right at the moment worldwide than from the

center or the left. democrats are not happy with facebook right now. he got more favorable treatment in the committee from republicans than democrats, i would say. let's move on from facebook. we are looking at amazon earnings by the end of the week. what are your expectations, particularly as we keep going back to the consumer as the bright spot in the economy? >> i think amazon is the last place u.s. consumers are going to stop spending on. even if u.s. consuming were to slow significantly, amazon still more or less is perceived by consumers as a cheaper place to buy than the local store, and it is certainly more convenient and people are going to be more busy if their economic situation is not as good and they are having to work harder, etc. inon't see amazon being hurt

the near term. i do think that on the others of amazon's business, there web services for business, they are getting more and more successful competition from microsoft in particular. i'm hearing more and more about ofpanies trying to pull out aws and move elsewhere. they are so dominant that i think it will be a hard business for them to continue growing at the pace they have. they are doing a lot of things -- that's the thing about amazon. they have so many businesses. >> we are also seeing cloud competition coming from rivals, not to mention amazon just moved to one-day shipping and so forth. are you at all concerned about the expenses side of things? >> certainly, one-day shipping is a controversial move, but they are absolutely adamant they will continue to grow their share of online commerce. in the u.s., they fell 20% of --

they sell 20% of everything sold online and they want to grow that higher. one-day shipping is an extraordinary offer and it is very expensive, but it is logical if they want to absolutely unequivocally hold onto their dominant market position because nobody else is even close to them in terms of the kind of ease of use of their services. people by dishwashers walking down the sidewalk on amazon right now. it is that easy. amazon has created a whole new sort of spending economy, and they continue to refine and improve it. it is problematic financially, but i think they are very smart to guarantee they will continue to dominate. always great having you with us. thank you. as facebook faces scrutiny for its libra project, one of the largest cryptocurrency exchanges is looking to develop its own potential competitor, a digital currency called venus. selina wang joins us from

shanghai. you spoke to the co-founder. what did she say about their crypto plans? meina: she described it to as a bit like an independent regional autonomous version of libra. overlaps, but venus is an open blockchain project more focused on the financial autonomy of developing countries. the co-founder also described it to me as a sort of belt and road version of libra, given that it will be rolled out an individual countries. in contrast, facebook's libra has a greater focus on reducing the cost of money remittance and transfers. take a listen to what else she had to say. we need more currencies to be involved. we need more commercial institutes to help ordinary people to dilute financial

risks. of course we need to make sure people who have not received any financial service to have the service. so we started doing venus project. >> you have called venus the belt and road version of libra, but the chinese government has outlawed digital asset exchanges as well as initial point offerings. how do you plan to work with the chinese government in that environment? >> china has been rapidly developing in the industries of mobile, internet, and fintech. we can see the chinese government is very supportive to the whole blockchain industry. andave called venus a belt road. it means in which region people really need a project like venus. there are still many people suffering from a lack of financial services. for example, they still do not own a single bank card. >> china is planning to release its own cryptocurrency that would give it more control of

its financial system. what do you think of the project in the future of cryptocurrencies in china? >> we believe all countries around the world will release their own cryptocurrency in the future, and they will roll out a very strict measures to supervise the industry. lies, toere our value help them clearly supervise the cryptocurrency industry and ensure stable, sustainable development. selina: both projects are both very theoretical at this point, but when they start ramping up, they will likely face similar scrutiny that libra has, especially when it comes to concerns around money laundering and privacy, but the co-founder also said they are learning from facebook's mistakes and planning to take a more conservative approach when they start rolling out, focusing more on regulatory compliance. thank you so much for that. fascinating stuff from really

uncharted waters. you can watch us live and see past interviews on our interactive tv function. you can also dive into any of the securities or bloomberg functions we talk about. during ournversation show. this is for bloomberg subscribers only. do check it out. this is bloomberg. ♪

shery: i'm shery ahn in new york. haidi: i'm haidi stroud-watts and sydney. that is all most it for "daybreak australia" this morning. for that set to open staggered open at the next hour. and it comes to new zealand, we are seeing a bit of a recovery after what we saw yesterday, falling by the most in about a year, driven by energy stocks plunging. rio tinto saying it is taking a

review of its alumina business in new zealand today. that is it for daybreak australia. this is bloomberg. ♪

haidi: a very good morning. under an hour away from the market opening in japan and south korea. shery: good evening from new york. sophie: welcome to daybreak asia. haidi: we start with breaking news out of south korea. we have third-quarter gdp numbers. quarter on quarter growth of 0.4% for the third quarter, which is really missing analyst xmas. it is also --