haidi: good morning. i'm haidi stroud-watts. we are under an hour away from the market open in japan and south korea. shery: good evening from new york. i'm shery ahn. welcome to daybreak asia. ♪ shery: top stories this hour -- hong kong braces for more unrest after a chaotic monday that saw one man shot and set on fire. carrie lam says violence is not the answer. boeing takes off thanks to a new timeline for the 737 max.

the u.s. may give approval next month, but either regulators are more cautious. tencent music find the right beat with earnings topic the highest analyst estimates. let's take a look at how asian markets are set to trade today after a pretty terrible session yesterday. we did not get a great lead from the u.s. wall street seeing very thin volumes and expert tatian still high that we will see this trade deal but some uncertainty coming through in the mix as well as you look at yesterday's trading due to we are looking at trading starting in sydney, i staggered open pretty much flat at the open after a robust session on monday. new zealand trading at 1/10 of 1% ahead of the rbnz decision. economists split about whether we will see another 25 basis points easing from the new releases -- new zealand central bank. we will get some hints to what direction they will go with the

inflation exit tatian's report later today as well as housing prices. to cargo nikkei futures flat at the moment. we are looking at a pretty flat trading session when it comes to u.s. futures as well. we will be watching very keenly the start of trading in hong kong after the chaos in the streets of hong kong yesterday that saw one man shot. lots of chaotic scenes right around hong kong. plunge at one point for the hand saying, the most in over a year. let's get the first word news with jessica summers. jessica: thanks. sterling jumped as brexiteer leader nigel farage pledge not to fight the ruling conservatives next month's election. the pound rose the most in three weeks after farage said he would concentrate on stopping the opposition labour party. the bookmakers say that makes prime minister boris johnson the favorite to win next month, possibly with an overall majority in parliament. u.k.'s ruling conservative

party says it sees no reason to extend my carney's term at the bank of hollande despite a brexit and snap a luncheon turning look for a new governor in confusion. the successor was expected to have been named by now. that won't happen until the pole on december 12, but chancellor says there is no rush. >> there is no need for an extension and the term of the governor of bank. if we need to win this election, we can make this decision very quickly on who the next governor should be. if we win, we will act very quickly. mexico sayports for the toppled bolivian leader has been granted asylum. he quit on sunday after claims of election rigging and the resignation of all his designated successors leaves it unclear who will take his place. mexico has announced the fall as a coup.

president trump has a plot of the army's decision. moody's says the global wave of populism and social unrest is putting credit at risk. the rating agency says its 2020 outlook for sovereign credit is negative given unpredictable domestic and international threats, and the populist policies that we can institutions and hamper growth. moody's says it expects governments to struggle to address credit challenges in the coming year. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. shery: hong kong is bracing from a protester disruption after monday saw one man shot by police and another set on fire. the center of downtown paralyzed by demonstrators. let's bring in sophie kamaruddin. it is now that time of day where

people are commuting to work. we are now hearing reports of some bus routes could be suspended. get us up to speed. sophie: that is the case. after a monday of may him that saw the central district brought to a standstill by police, te argas to disperse protesters. we are seeing morning traffic move. there is police presence ready. we have the transport department and several transport companies also update that we have bus routes suspended and light rail lines for trains will be suspended as well. two stations will remain closed this tuesday after more than 40 on monday given the escalated activity across parts of the city. this has seen an increase in public anger given a series of events, including the confirmed death of a student on friday.

the first fatality linked to police action. on monday, that was marked by the shooting of a 21-year-old student who remains in critical condition but non-life-threatening condition. given this ramp up in activity on monday, we did have the forces not using proportionate action. lawmakers say that is not the case. see moreay, we did than 60 people injured. according to carrie lam, 266 arrests were made. a lot of the injuries was a man set on fire in an incident being classified as attempted murder by police. there's a lot of consternation, a lot of anger given this ramp up in activity. haidi: what are we expecting today? sophie: today, we do have carrie lam's weekly briefing ahead of the executive council

meeting. the first official one after she met in beijing last week. yesterday, we had an address by her in which she said the government will not yield to pressure and the violence, given to what she calls the so-called protesters political demands. have a listen to what she had to say. >> if there is still any wishful thinking that by escalating violence, the hong kong government will yield to pressure to satisfy the so-called political demands, violence is not going to give us any solution to the problems that hong kong is facing. expect the pressure to continue as protesters have vowed to keep up what they are calling disrupt normal business and transport from 7 a.m. this tuesday. haidi: sophie kamaruddin in hong

kong. as the city wakes up potentially to another day of chaos and unrest. joining us is ben, the director of the institute where he focuses on policies in hong kong and southeast asia. he is also the author of generation hong kong which looks at the growing tensions between the city in beijing. residence or inhabitants of hong kong and it is quite extraordinary seeing this scene happening. it feels like things have markedly changed in the last 24 hours. does it seem like there has been some sort of directive to authorities they will be after? ben: it is hard to know what the chinese communist party thanks because they act with so little transparency. we know that carrie lam was in beijing and shanghai last week. xi jinping and other top leaders, expressing their full support for her. over the last few weeks and months, the police have intensified their crackdown and

it is clear that carrie lam and the hong kong police have the full backing of beijing to do this. i think it is important to understand the escalation of violence she talks about is coming from the government and the police. it is being matched i protesters in this escalation of violence, but it is clear this is the tactic authorities want to use to try and stamp out this movement. it is clearly not going to work because you cannot resolve a political problem with a law enforcement solution. haidi: the theme of the remarks by carrie lam being unyielding to the protesters demands while the violence continues. as you rightly point out, there has been violence on both sides. pretty disturbing videos on social media from both sides. the problem is it does not feel forwardre is anyway because the protesters at this point will be calling ever more loudly for political accountability after what happened yesterday but it does not look they will have any of those demands met.

ben: we heard carrie lam talk about calls for demands. she is not even accepting the legitimate political demands which is a real problem. if you listen to what the government has been saying, with a chinese state media saying, we are talking about economic problems. but it is clear that is not the case. a huge group of hong kongers who want democracy are alongside the more radical protesters in support of the same goal of accountability of police actions and democracy for hong kong. this is a really deep divide in the city. ignoring people's demands and suggesting they are not legitimate, you are not going to see any solutions. is that uncomfortable for beijing, it feels like they are comfortable. carrie lam was quite calm yesterday. i think she feels like she is taking care of the problem. by ratcheting up the police response, they can squeeze the problem up. that does not seem to be the case. these concerns are not going to go away.

then, how do you find any resolution to what is happening in hong kong? how do you break this impasse? withdrawto beijing to the government in hong kong and carrie lam? will this solve the problem? because right now, the issue seems to be -- it has been five months and no one can really point to a resolution or a way forward. ben: i think when you see conflict escalating, it is really hard to see a way out. when you talk to democracy activists, they will say they don't have an offramp. they are calling for change but they are not in government to do the power about it. i do think if you have an independent police inquiry, if you have accountability, maybe carrie lam removed and sometimes there will be a shift to a more democratic government, i think that would be quite effective in some sense. but that seems very unlikely,

likely impossible with the way beijing sees the problem. it is hard to see anything other than continuing escalation unfortunately which is pretty sad to see. that is what we are seeing on the streets and that is going to be likely expectation for what is going to happen going forward. shery: even if you get to that point, all of those points you mentioned, the key question is how long it will take to heal such a divided city because this started as protest against an extradition bill, rage against beijing. but now it seems to be rage against their own people, the hong kong police. ben: yeah, there is a deep divide that comes from the decision by the government and beijing ultimately to use the hong kong police on the front lines of what is the problem. the result of that has been a wide and deep loss of trust in the police. that is a huge problem for hong kong going forward, when people lose trust in police. that is a problem for the rule of law. protesters breaking the law does

not undermine the rule of law, but when the police flout conventions, when the police lose trust of the people of their city, that is a massive problem for the rule of law going forward. it is very hard to see how the police come back from that and how hong kong society moves forward. this is likely to be a deep conflict for a long time to come. it didn't just start with the extradition bill. the concerns about beijing's encroachment on hong kong's freedom and a tawny was there before. what we are seeing is the movement moved to a different level of intensity, but the frustrations, the problems, the resistance, the calls for democracy have been there long before the tradition bill. we need to remember that too. shery: ben bland, thank you so much for your insight. the unrest in hong kong is feeding into discussions in singapore. the annual fintech festival, hsbc is among the companies calling for an end to protests. >> we are the community bank.

we are super committed to hong kong. we have done a lot of things to try to help the community in the meantime. we cannot control the political situation, so that is beyond us. shery: our chief international correspondent for southeast asia haslinda is at the event for us. take it away. shery, eddie mcguire expressing the sentiment among the leaders i speak to at the fintech festival. many say they remain committed and they need to take a longer-term perspective and they see a resolution as the businesses are unlikely to be impacted, at least for the shorter term. the question is in the quarters ahead, what will it be in terms of those numbers in terms of profitability? the tech conversation here at the fintech festival revolving around the scene ability as well. they are looking at ways to promote climate change. singapore announced a $2 billion

fund to promote climate change, other measures as well, to make singapore be at the forefront of a greener financial system. we have lots of interviews coming up. we will be speaking to the chief fintech officer at the authority of singapore. we will get an update on the digital banking licenses that they will be issuing. the deadline is december 31. our exclusive with the president of the former deutsche bank ceo. we will talk about technology funding, how startups can test the debt market, not just the equity market. also, gopay ceo aldi haryopratomo, the mobile payments unit, we will ask if he is planning for partnerships. a lot coming up live from the singapore fintech festival. haidi: great lineup. looking forward to it. still ahead, china's credit

growth slowing more than expected in october. we will ask why efforts to prop up the economy are not working. music tencent earnings beat analyst estimates. that is ahead on bloomberg. ♪

shery: you are watching daybreak asia. china's credit growth slowed more than expected in october to the weakest state since october 2017, as weak corporate demands for credit combined. tom mackenzie joins us from beijing. what is this telling us about the effectiveness of those targeted stimulus measures? tom: it really points to the limits of these targeted measures by the pboc. for example, the targeted rrr cuts to ensure that banks lend more to the target sector, it

simply is not coming to fruition in the way many officials in the people's bank of china would have liked. look at the aggregate social financing number for october. it came in at $88 billion, the equivalent.that is compared to back to september, the weakest number since 2017. it is the fourth consecutive month of slowing expansion of aggregate social financing. then, look at the new loans number as well. that dropped to the lowest level since 2019. continued pressure in terms of new loan issuance. pointing to the supply and demand equation you highlighted. shadow banking suggesting the deleveraging campaign very much continues. shadow banking contracting again year on year. this pointing to, according to economists, a continued weakness, continued slow down the economy. they don't see it stabilizing the economic picture until the

very earliest, the first half of 2020. shery: what does this say about what the pboc could do next? economics,bloomberg they say this is anemic data. they say if you combine this with deflation you are seeing in the industrial sector -- we saw those producer prices dropped by 1.6% in october. fourth straight month of falling prices from the industrial sector. you can buy data with the credit data we got out for october and they think you are going to continue to see a slowdown in the chinese economy, at least for the next few months. that underscores what they think is the need for the pboc to step up with more easing. they think that will take the fall of cuts to the prime this year by between five and 10 basis points. they expect may be more cuts in 2020. they are also saying the chances of an additional rrr cut this

year has risen as well. bloomberg economics, other economists out there saying really this credit data puts the pressure on the pboc to act more aggressively than it has been in the past. shery: tom mackenzie in beijing, thank you so much for that. let's turn to hong kong because we have breaking news. we are hearing the hong kong train operator npi is saying the train service disruption is ongoing on the east rail line. the train service near university station has been suspended. this coming after some of the most violent protests we have seen since the demonstrations begin in june. we also heard from the hong kong bus operator kmb that they have suspended 10 routes, this during the commute hour in hong kong. plenty more to come. this is bloomberg. ♪

haidi: this is daybreak: asia.

i'm haidi stroud-watts. shery: i'm shery ahn. the latest check of the latest business flash headlines. more than $38 billion in purchases at this year single day shopping three and sees more to come in the future. that figure would be a record, topping last year's high marks for the 24 hour retail marathon. alibaba says half a billion consumers across the world bought things as diverse as the apple gadgets and mangos from uganda. taylor swift and gem help boost sales. haidi: tesla has shown off its first cars built at its plant in china as it prepares to start sales of locally made vehicles on the mainland. all came in blue and sporting chinese characters. tesla's first out of the u.s. it is a test of the carmaker's bid to prove it can make money in the world's largest automaker. shery: longtime struggling

commodity trader reported a net loss in the third quarter on a series of one-time charges and the flatlining of raw materials it handles. the group lost $93 million through september. long drawnout implosion's, restructuring, court battles and shareholder arguments were all sparked by a former employee's accusations of improper trading. australia'sank of first quarter profit fell, reinforcing the gloomy outlook for the lenders. let's bring up emily. what have we learned from the trading update in sydney? emily: what was learned today was the reinforcement of what was coming through, particularly how australians are nervous. deposits rose about three times the rate of home loan. are indicates consumers stashing for the future rather than going out and spending or

taking credit out. reinforcement of the muted outlook for the bank. nothing usually good and these results. haidi: what does it signal for the rest of the banking sector? emily: i think it signals the outlook is tough and it will continue to get tougher. commonwealth bank is the nation's biggest bank, biggest lender. really into with what customers are feeling. when it is seeing year-over-year profits decline, there is no easy money to be made. haidi: thank you so much as always, emily. here in sydney. coming up next, boeing shares surged after the playmaker provided a new timeline for the 737 max to return to the sky. that is coming up next. this is bloomberg. ♪ when it comes to using data,

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shery: we have an alert on the bloomberg. we are getting goldman sachs bank ceo responding to the apple card concerns, saying it is committed to fair decision process. goldman says users can request to have credit lines reevaluated. this coming after social media postings by a technology for newer and apple cofounder steve wozniak complaining about unequal treatment of their wives. this ignited a firestorm that has engulfed the two giants of silicon valley and wall street, casting over what the companies have claimed was the most successful launch of a credit card ever. in the next hour, we will have an interview with apple

cofounder steve wozniak on whether changing the apple card algorithm would work. for now, let's get the first word news with jessica summers. jessica: thanks. hong kong's leader carrie lam has condemned protester unrest, warning that violence will not help them achieve their goals. monday saw police shoot one protester and drive a motorcycle into others, and then fired tear gas in the central business district. separately, another man was set on fire during a dispute. the subway operator is reporting disruption on the east rail line on tuesday morning. >> if there is still any wishful thinking that by escalating violence the hong kong government will yield to pressure to satisfy the so-called political demands -- violence is not going to give us any solution to the problems

that hong kong is facing. factory outputs shrank to the lowest level in eight years in september, a sharp fall in capital goods production underlining weak demand. the index fell 4.3%. that compares with estimates of a 2.5% contraction. it is the lowest reading since october 2011. gdp data for the september quarter is due on november 29. and, malaysia has had its airline safety ranking downgraded by the u.s., putting it on par with bangladesh and ghana. the faa says the local civil aviation authority does not meet international safety standards and cut malaysia from category one to two. the faa also confirms it does not prevent malaysian couriers from continuing services to the u.s., but does prevent them from adding flights. and, spacex has launched a second batch of satellites,

moving a step closer to elon musk's decision of an orbiting broadbent internet service. the rocket blasted off from cape canaveral, deploying 60 satellites an hour later. it hopes to offer internet services in the northern u.s. and canada next year. projectscompetition by from jeff bezos and softbank. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. boeing shares surged after it provided a new timeline for the 737 max 8 returned to service. the company says the faa is on track to certified its redesigned flight control software next month. let's get to our aerospace editor, brendan case. do we finally have some sort of positive expectation the plane

will be back in the skies? brendan: that is certainly the way the market took it. boeing came out with a statement that had good news and bad news. the bad news is it boils down to a one month delay in expectations of when the max will have full regulatory approval. that timetable has shifted to january instead of december. the good news was that we are in a situation where there is so little information about what is going on behind the scenes, so much concern of a dramatically longer delay that the extra detail that boeing provided and the assurance that they gave around the january timeline was taken as a big positive by investors. shery: what does it say for the 737 max 8 coming back online in other countries? because this would approval by the faa. brendan: just the approval by

the faa and european regulators, for example, have talked about a gap of perhaps a few weeks between the time the faa approved the plane and the time they do. that is by no means a promise. it depends on the decision regulators make about the planes safety. you could assume that regulators in europe would probably be with somefollow suit number of weeks after the faa's decision. much forank you so that, our aerospace editor joining us from dallas. we work is continuing its search for a new ceo and t-mobile's john leger among those under consideration. let's get the details from ellen huet in san francisco. even if wework would want john leger, would john leger really want to go there when he is working on the 18 month merger

between t-mobile and sprint? ellen: that merger may be the key as to why he is considered for this job. reading the tea leaves a little, but he has strong ties to softbank as the current wework executive chairman. we know softbank is the controlling holder of wework. they may be looking to people that i have strong connections with to figure out who could be a ceo for wework going forward which is undoubtedly going to be a very challenging job that anyone who takes on will feel a lot of pressure to turn this company around and set a new chapter for a company that has been through absolutely the ringer the last few months. haidi: there has been a bad blood between these two gentlemen. 2016.ring on twitter in marcello actually called him a con artist on twitter. how do we expect he will fit in at wework? ellen: that is a big question for a lot of people.

they're looking at the past history between these two ceos who have sparred very publicly about telecom issues. maybe they would be able to put those aside in favor of making a future together for wework. but, i think it remains unclear. of aleger has a reputation very rash ceo. someone who was a little eccentric and in many ways may mimic some of the personality traits of adam neumann. that may be out of line with what wework hopes to project going forward. ever since adam neumann stepped down in late september, the tone from the company has largely been we are responsible now. we will be aiming for profitability. things will be stable once we write the ship and once we get everything back in order. we will get back into the business of making money through office rentals. huet, thank you for joining us with the latest on wework and john leger. we have breaking news.

president trump speaking at the moment, saying he will be releasing a transcript of his first call to ukraine this week. this comes as we continue to see this public impeachment hearings in the house starting this week. now, we are hearing from the president, saying he will be releasing this transcript of his first ukraine call this week. this coming on a week when acting white house chief of staff mick mulvaney failed to appear in the house after having been subpoenaed to testify friday behind closed doors. president trump now saying he will be releasing his transcript of his first ukraine call this week, saying that on twitter. haidi? haidi: coming up, we will return amin inhaslinda singapore at the annual fintech festival. who are you meeting? haslinda: we will be speaking --

[laughter] haslinda: we will be speaking to thechief fintech officer at managing authority of singapore. we will be speaking about the fintech space in the lion city as it tries to promote fintech activities here. coming right up. this is bloomberg. ♪

haidi: just want to get to the latest out of hong kong as the city wakes up after one of the worst days of violence and unrest yesterday. tuesday looking to be tense as well and the public transport operators repairing for that. the market surface has been suspended, as well as expecting service disruption to the east rail line. station atsaid the the university, hong kong

university has been closed. universities across the city have been ground zero when it comes to some of the unrest from protesters. many of whom are university students. we heard the announcement from some of the city bus operators, including city bus kmb suspending or diversity various lines. the hong kong police hoping to clear debris in the area. shery: right. let's head to singapore where it is day two of this year's fintech festival. we will join our correspondent haslinda amin. has? singapore launched its fintech initiative five years ago. let's get perspective from sopnendu mohanty. the man behind this huge fintech festival. good morning. sopnendu: good morning. haslinda: five years on, you have created jobs, buzz in the

fintech space. how much has been achieved? sopnendu: thankfully, the fintech response has been remarkable. we did not anticipate the growth we have seen the last four years. you think about when it started, fintech was just a buzzword. we really didn't know the impact it would make for years back. a way to improve financial services. now, almost every payment we do is online, through electronic methods. $1 billion goats to the pay now network which is unthinkable four years back. there's a whole paradigm shift in terms of where we do business, e-commerce. everything has changed. ridehailing services. there's a big shift. haslinda: where does singapore stand when compared to the likes of london, hong kong, san

francisco? sopnendu: singapore is up there. haslinda: up where? sopnendu: definitely in the top three, absolutely, no doubt about that. but, let's be safe. haslinda: in terms of fintech's survival rate in singapore, how would you rate that? sopnendu: i think it is quite strong. a lot of the companies here are doing business beyond singapore. they are anchored in singapore, they are growing out of singapore but business happens around us. i think that is quite a good opportunity for fintech companies. haslinda: the profitable rate among fintech companies has always been an issue. sopnendu: let me put it this way -- the profitability question you are talking about, business to consumer companies. costs go up and on the negative side of the balance sheet. in singapore, a lot of the

companies have b2b. we are the engine behind the digital transformation. you design the product, you solve the middle office strategy. there are good tech services. because the fintech, b2b, profitability is quite different. haslinda: the buzz is also surrounding the new digital bank licenses to non-bank companies. how many bitst, have you seen? give us some color. sopnendu: all i can say is interest is a seemly high. the good part is there's not a single entity that tries to solve the problem. tech expertise, business expertise. ram this kind of to business. that's a big difference between the traditional backing versus

trying to solve the problems. haslinda: how weather look like 5, 10 years down the road, the banking space with nonbanks in the fray? sopnendu: that is happening. you look at payments space. next year, they are all regulators. businessou deliver the is far more different. haslinda: in terms of the cryptocurrency market, do you see that as being a growth area for singapore? sopnendu: that is much more possibility. sometimes it looks like a cryptocurrency, but there is a space out there that people are putting a lot of the assets. that is something to watch out for in terms of that. haslinda: is it something that singapore can look to? sopnendu: why not? if there is a demand for assets, singapore has built good

capacity in terms of talent of who can do this kind of work. why not? haslinda: any plans for crypto banks in singapore? sopnendu: yes, most are from singapore. i'm sure that there is a place there for licensing. haslinda: in terms of pushing singapore as a digital, fintech hub, what is the 5, 10 year timeline you were looking at and what is the strategy? sopnendu: from my perspective, singapore fintech hub will focus on driving the digital transformation of economics. we will be packing the engines behind solutions. that should be our focus. we are a small market. we are the market that will solve the bigger consumer need across us. -- 2.5 billion people. size toa lot of market

solve a lot of the new demand in the economy. of2025, there is expecting $300 billion of new economic opportunities. with online payments and e-commerce. haslinda: among the initiatives, we have the project with three phases of five? when will it be commercialized? sopnendu: you will see next year, a large part of the project will be getting to production. we have to ensure the promise we multicurrencye payment network which will drive the new economy. it is something that will make it real. haslinda: in what way will it be a game changer? sopnendu: mainly because the process -- it will be far more

efficient. way we do a different cross-border transactions. haslinda: when you take a look at the singapore fintech festival, in four years, participation has surged. what are the calls going forward? do you see participation going from 60,000 to 100,000 in the next one or two years? haslinda: absolutely. sopnendu: if the market says the space should grow, we will grow it. who knows, we could be the next summit of fintech which is beyond 100,000. haslinda: in terms of technology funding, this big debate about debt versus equity. where do you stand? sopnendu: i think because of the recent challenge in funding long-term companies, my argument is if you are a founder, i don't mind protecting at the early

stage. a lot of capital. debt structure is a good way to go. why not take some debt and ownership? haslinda: we are seeing a lot of fluctuations in the ipo market. thank you so much for your insights today. chief fintech officer. we are coming to you live from singapore's fintech festival in the lion city. haidi: lots of great conversations i had today. thank you for that. still ahead, the beat goes on. tencent music tops estimates. why the shares are down and after hours trading. we will take a look at the numbers. this is bloomberg. ♪

haidi: this is daybreak: asia. shery: tencent music entertainment grabbed the

spotlight and extending trading after exceeding the highest earnings estimate. it reported big year-over-year gains in revenue and new music users. su keenan has the story. what rose the gains? su: they have been talking about shifting much more premium content behind the pay wall. they started this in may so you have more people to pay for content. they said in the announcement that it appeared to pay off. tencent is down right now and extended trading. it has been a volatile after our session. initially being the highest estimate in revenue, beating the expectations on subscribers. they went down as much as 1% and this may have to do with the fact that for the biggest revenue driver, their social entertainment services, they did not have as much growth as they anticipated. we will get to that in a minute. in terms of the headlines, saw

42% gain in users year-over-year. that is significant because there was a lot of concern. they are putting their efforts whichhis premium content does not appear to do. however, the company has the slowest rise in a widely watched growth metric for the biggest business and that is the social entertainment services. the biggest revenue driver is these karaoke platforms, wesi ng among others and that the not have anywhere near the growth. an example of the third corps -- third quarter online paying users. 42.2% year-over-year. big win, but there social entertainment paying users are at, 12.2 million an increase of 22.2%. haidi: in terms of the strategy to shift more users into paying users, premium content, there is concern of the pressure margin. su: absolutely.

so far, at least on the music side, we are not seeing that. is real focus after hours what about these entertainment services? as you look at the way the stock has performed, it has done well. the regular session, up as much as 4% and managed to cut that to 2.6%. it has been up pretty much year to date. you are just looking at the last quarter there. it has come back from some issues that had back in the summer regarding its record labels. what is significant here is on the sequential basis, the number of online paying users in music was up at a rate that is the largest net increase since 2016. the cfo is saying looking forward, we want to strengthen the synergy between online music and social entertainment businesses to continue in invest in long-term initiatives. to give you an idea, spotify

technology in the u.s. has over 100 million paid subscribers. when you look at where tencent music ha 35 million, it pales in comparison. the important thing is tencent has a base users subscribers 900 of nonpaying users, million. the goal is to convert those on both the music platform and social entertainment into paying. that is where analysts are adjusting this and the company is saying they can get it done. on bothe numbers are sides of the platform. haidi: su keenan the latest on tencent music. a quick check of the latest business flash headlines. in focus today in the sydney session after first quarter profits fell and reinforced the gloomy outlook for extended lenders. continuing operations with approximately $2.3 billion aussie through september. 2.5 compares through

billion aussie dollars in the last quarter. longtime struggling commodity trader nobel reported a net loss in the fourth quarter on a series of one-time charges and flatlining of raw materials. shery: the group lost $93 million through september. the long drawnout implosion, restructuring, court battles and shareholder arguments were all sparked by a former employee's accusations of improper trading. haidi: uae investment company is said to be among the bidders interested in buying oil refining assets from brazil. the sale is the first of a move, a wide-ranging shakeups of the state-owned energy company and will help open up resilient fuel markets. it currently accounts for about 98% of fuel production in brazil. shery: coming up on the next hour of daybreak: asia, cover some group head of research chris weston joins us to discuss hong kong, brexit and more.

plus, we will talk about how the trade war is playing out for southeast asian nations. the market open is next. this is bloomberg. ♪

>> good morning. i am haidi stroud-watts in sydney. shery: i am shery ahn. welcome to "daybreak asia." haidi: our top stories this tuesday, more tear gas in hong kong after a chaotic monday that saw one man shot and another one set on fire. carrie lam says violence is not the answer. hsbc is among those calling for an end to the protests. we hear from the chief

operating officer. the inequality row rumbles on as goldman sachs says it is committed to fairness. we have the thoughts of steve wozniak. shery: let's get you started with a quick check of the markets. we are seeing japan and south korea coming online. we are seeing a little bit of upset for the nikkei after stocks saw their first fall in five days. the topix under a little bit of pressure at the moment but still above the 1700 level, which at top for the first time since october of 2018. the japanese yen unchanged and around the 109 level. we have seen some strength for the japanese yen against the u.s. dollar this week as we had some more uncertainty over the china-u.s. trade deal, not to mention the uncertainty over tensions in hong kong. take a look at how south korea is coming online after two sessions of losses. the kospi seeing an upside of .3%. we have seen the korean won lead

the losses given we had the uncertainty surrounding the first phase of the china-u.s. trade deal. the asx 200 at the moment under a little bit of pressure, down .4%, but this falling after being at that very high level. at the highest level in fact since august. this ahead of that rbnz rate decision we are expecting on wednesday. the consensus is for a type. a lot of the sentiment in the region in asia today, haidi, seems to depend on what happens in hong kong. haidi: that's right. protests and unrest goes on for straight weekrd and arguably some of the highest tensions flaring on monday after that one young man was shot. another one was set on fire. violence and chaos really on both sides. across hong kong, we are getting breaking news across the bloomberg with reports that protesters are throwing objects at police in the area of west

kowloon in hong kong. police are firing tear gas at protesters in that part of west kowloon, so we will be keeping you up-to-date on these developments. hong kong just waking up this morning. with the cancellations and disruptions to rail as well as bus services, the city is bracing for another day of violence and chaos. let's get straight to hong kong now. sophie kamaruddin is on the ground. get us up to speed on what is going on. while morning traffic has resumed here in the streets, at least in the central business district, we saw tear gas being used on monday. with protesters. tear gas has been fired. police are trying to subdue protesters. commuters will face more disruptions. stations remain enclosed after

more than 30 were offline on monday and serve the network are suspended. along with several bus routes. the city bracing for more protests. activists are calling for a citywide general strike to keep escalatedw -- danger over the shooting of a 21-year-old student, the third such incident since protests began. it sparked more criticism for the disposition of -- disproportionate use of violence. 266 arrests were made on monday and people were injured, including the man set on fire in an incident being classified as murder by police. shery: we are hearing from the hong kong mcr. they happened on a line. disruptions and trendlines as well as bus routes. onheard from carrie lam monday urging for calm.

what are we expecting later today? she is to deliver her weekly briefing. this comes after her visit to beijing last week, during which he met with xi jinping. the so-called political demands. on law & order. they will continue to support at force this morning -- this morning's speech. exports appointed to advise the independent police council, they have found a watched on powers, they are -- watched on powers have neither the resources to investigate the ongoing protests. we can anticipate that address later this morning.

maintainuthorities that only those who are loyal to the central government can hold the position to lead hong kong. in thesophie kamaruddin city. thank you. let's get the first word news with jessica summers. jessica: last month's sales tax confidencean sent among merchants to the lowest levels since the 2011 earthquake and tsunami. the economy index is a survey of store managers, taxi drivers, and others, who deal directly with consumers. in october. that was less than an earlier tax hike in years ago. digesting the reaction may only be temporary. south korean investors are pouring billions of dollars into so-called unconventional assets abroad. holdings of overseas assets such as real estate, infrastructure, $170 billion hit

this year. it has risen more than threefold over the past decade $10 trillion last year. is forecast to topped 13 trillion in 2023. reports from mecca so -- mexico been grantedes has asylum. itleaves an unclear -- unclear who will take his place. president trump has applauded the decision to recommend morales lead the presidency. moody's says the global wave of population and social unrest -- populism and social unrest is putting the credit rating at risk. it is negative given unpredictable domestic and international threats and the policies that weaken institutions and hamper growth. expectssays it

governments to struggle to address credit challenges in the coming year. 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 jessica summers. this is bloomberg. the u.k. avoided recession in the third quarter. we will discuss the headwinds facing the economy unless right posed by -- and the threat posed by brexit. haidi: steve wozniak says changing the algorithms of apple is not the solution to alleged discrimination. plenty more to come, including that conversation. this is bloomberg. ♪

haidi: we are looking at a view of hong kong this morning as the city wakes up after one of the most violent and chaotic days in these 23 weeks of pro-democracy protests with protesters

clashing with police yesterday, culminating in the shooting of one young man on monday and another man being set on fire in a separate part of the city. early this morning, it is still early morning, that we are already seeing disruption to major train services. beingtest being a line disrupted as well as parts of west kowloon as well. numerous bus operators have come out and said there's disruption, diversion, or cancellation into many roots run throughout hong kong. one other throughout the bloomberg that the english schools foundation has suspended all classes in hong kong this tuesday, so we are looking at a very disruptive set of events as the city braces for more chaos. let's get the market perspective with the next guest. the head of research joins us this morning from melbourne. great to have you. i want to start up with a chart which really paints the market reaction, how investors aren't

feeling about the chaos and the violence and the clashes we continue to see and what is supposed to be a shows global business city. right? hong kong stocks, what a terrible monday it was. at one point, it fell the most in over a year. virtually every single stock listed they closing lower. we have already seen the economic ramifications, and so far, market sentiment has held up pretty well. where do we go from here given it has seemed like there is no way forward a compromise between the two sides? markethong kong stock has been following global liquidity and what has been happening in the csi 300 very closely. yesterday was the first time in a while that we have reverted to the tensions that obviously have been prevalent for some time. a three standard deviation moves, statistically something that happens very rarely. that is something that has hit

us in the face of little bit. the volatility we saw in the market. we are expecting a better day today by the fact that the s&p did not fall as much as some people have been anticipating. the fallout, in the last third quarter, we saw it down 3% or so. in the fourth quarter, that probably will be lower than that. tough times. the bigger question we are fielding from clients at the moment is how do you trade the hang seng and some of the chinese markets and also the cnh to a very small extent? more broadave a reaching contagion effect into global markets? one suspects that's a low probability. people asking that question. haidi: what about the uncharacteristic weakness we are expecting in the hong kong dollar? is that an avenue of interest or concern for investors? chris: you talk about the hang seng being opposed to what we

saw yesterday in terms of volunteer utility in financial markets, but you know, you have your eyes on things like the forward rates, the 12 month forward rates. the hong kong dollar sitting at over 50. very rarely have they been this high. and again, that is kind of showing you that the stress that is in the markets, i think people are looking at those. wherever that spills out into funding costs, other currencies, and various factors, is something we will be watching closely. are idiosyncratic to hong kong and seem fairly well contained at this stage. that said, obviously keenly watching these developments. to see thisue surgeon borrowing costs in hong kong. every time we have protests becoming more and more violent, the gtv chart showing how it has topped library. will liquidity -- will this liquidity squeeze become a real problem in hong kong or are we

expecting it to settle down again as it has in the past? chris: we are watching proceedings very closely. volatility in markets is still low. this is going to be contained and it probably will be contained by central banks and the liquidity will become abundant again. markets are saying that any kind of spikes in funding costs shine a light into the temporary blip. shery: you mentioned the chinese yuan earlier. we have seen more weakness given the pessimism over the trade deal. thee are we headed in chinese currency especially in the week where we have tons of eco-data out of beijing? chris: i think tonight is a material risk. donald trump will be talking about the economy and trade, and clearly, that is an elevated event risk. if you look at overnight implied

,olatility in dollars cnh volatility is implied at -- it is getting into the lower echelons of what we have seen in the last 12 months. people are not expecting big moves. few doorsen up a around what is happening in trade. i believe that markets, while we do not have definitive data, and that is a problem, we are still working on the assumption that something is going to get done. the devil is in the details. if we get any rollbacks, that is something people are looking at. we have started to see a few sellers creeping into the cnh. we got down to 695. we are back above the seven handle at the moment. i don't think anyone is expecting too much upside in dollars cnh. that could be an area that is underpriced by markets and that could put some downside into some of the china proxies and the euro as well.

haidi: the chinese credit numbers for october were pretty worrying. the slump is far beyond what we would typically expect seasonally for this line of data. new loans falling to the lowest in this year. aggregate financing, the lowest since 2017. does this suggest that while the transmission from the targeted doing may not be working and we expect more aggressive moves going forward? i think this is a somewhat volatile number. it has been high for some time but you can have some decent misses and the consensus. well belowte numbers expectations. the supply number, 8.4%, was in line with the consensus so that is why we did not see too much a cnhtion in dollars overnight. that being said, the multiplier and a credit impulse in china has been moving out, and i think that he's been -- has been part of the reason we had this

risk-on rally throughout various markets. what has gone from the alternative is effectively a large part of the capital markets. part of that has been down to the credit numbers in china being right at the backbone. money supply has been pushing up quite nicely. risk assets have been correlated to that. getre not going to continued credit expansion at that clip for forever. it is no surprise we have seen a bit of a back burner. those numbers could come back on at any time. we are also headed to the rbnz rate decision on wednesday. can you trade this event? want: it's not something i to trade myself but i think it will be very interesting. my personal belief is that they will not cut rates and there is a material belief that they will join this weight and seeing global sort of phenomenon that is going through central banks where they want to have a look at inflation expectations,

financial conditions, and really get more clarity around trade and brexit, for example. the markets pricing in just about 60% chance they ease. most economists are in that same camp as well. dollarction in the kiwi comes if they do not use and a 20 points of cuts priced in is not met. in get a decent sort of move the kiwi. the consensus, as i say, is if they cut, you can join the wait and see. you have minimal reaction to the downside. i think the reaction comes in cutkiwi, if they don't rates, and obviously they don't give in outlook, are they going forward as well? staying withon is us. we will ask his views on brexit, next. this is bloomberg. ♪

shery: this is "daybreak asia."

i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. the united kingdom -- the latest gdp figures underscore the economic challenge facing whichever party wins to election. the chancellor of the exchequer told bloomberg how his spending plans would boost growth. will beour fiscal rules should be win the election. it is precisely to give the andidence to businesses international investors. i do not take for granted economic investment at all. showw that you need to very clearly what the economic policies are of the government and also how we will work hard to attract and keep that investment in the u.k. the alternative to the conservatives is a labour party that will have spending out of control and also not remove the biggest uncertainty in our economy today, which is brexit.

we have got a brexit deal that is ready to go. we can implement it within weeks of taking office and have a smooth exit from our friends in the e.u. lt issuance rise? >> it will stay under control under our plan. >> will arise? -- get rise? -- it rise? > it will always the imbalance. we will sensibly borrow more to invest in economic infrastructure, but that is a whole world of difference between our plans of sensible investment and economic infrastructure versus labor's plans, which is endless amounts. >> how much will you borrow? >> if we win the election, then we will have within weeks our first budget of a new government and in that budget, you would expect to see the details and the independent forecast about

the impact of our spending and tax decisions, and that is important. to get there, we need to win this election and show, as we are, that we are the fiscally responsible party we always have been, and over the last nine years since we have been in office, we have seen this economy recover. we have seen almost 20% of growth in the economy in that period. we have done far better than many of our competitors. wekeep that growth going, need to have a fiscally responsible government, and only the conservatives can do that. >> will you ask the government of the bank of england to stay on given the uncertainty that exists at the moment? >> there is no need for an extension. if we were to win this election, we can make a decision very, very quickly on who the next governor should be, and if we win, we will act very quickly. >> the u.k. chancellor of the exchequer speaking to guy

johnson. chris weston is still with us in melbourne. chris, great to have you. thank you so much for sticking around. we have seen the sterling actually jumped the most in weeks. it continues its rally at the moment after we saw that news that nigel faraj was actually not contesting those through the 17 seats taken by tories in 2017. how much is this expected to help the prime minister's push in his withdrawal agreement? of theink in the eyes market, and certainly the sortng markets as well, we of started to look through the actual election vote and that may be premature about people are looking at the transition period now and asking themselves do we get a majority and then what does that majority look like? it is a sizable sterling positive if we can get a significant 20 states or so more majority because that takes the research group out of the

equation to an extent when we go through to negotiate the transition period and the relationship. if it is a smaller majority, we will be talking about extensions, hard brexit still very much a somatic if that comes in and we are probably going to see a reaction in the pound. because of nigel faraj intentionally falling on his sword in those constituencies, people are going to have one choice to make in terms of if they want to leave and the vote will therefore go to the tories. boris johnson will take that to and the wayry day that sterling has traded suggests we have started to look through the election and going into the next stage, the transition period. a hung parliament could be a feasible outcome. it is yet to be seen. people are looking at that transition period. haidi: does that mean there is further upside when it comes to

sterling? onis: going to the election december 12, and people are not expecting a big move. i think, today, we get the event going. over one month implied volatility. we will have to see how that ramps up. too not expect the market see big fireworks. given that we have seen from faraj and the consolidated to read -- the -- what does that majority look like? mandatees a very strong for boris to take this forward and look to these future relationships. i think there will have to be an extension of next year's deadline for that transition period, which marks a settlement for the end of the year. into july, we are going to have to see that extended. i think people are looking at the majority there. always appreciate your

time. chris weston, head of research, joining us from melbourne. we break the brazenness confidence figures out of -- business confidence figures out of australia. this is bloomberg. ♪ lia. this is bloomberg. ♪

haidi: breaking news crossing the bloomberg. the business conditions for at three.ming in business confidence for october, that number coming in at two, picking up from zero in the previous month, which have been a seven-year low. mild improvement after the consumer confidence index coming in a little bit weaker this morning. on the business side, business conditions and business confidence all picking up in the month of october. cheri. -- shery. shery: let's get a quick check

of japan. it is surging the most since 2001. this is our news from kyoto, reporting that toshiba is considering converting its into wholly-owned subsidiaries. the decision as soon as this week. toshiba systems is getting 14%. they are on at the moment but it is. at the upper daily limit on that report from japan that toshiba is considering converting some of their listed units such as those companies. let's get the first word news with vesicle summers. jessica: thank -- jessica summers. jessica: investors pouring dollars into unconventional assets abroad. assets haveoverseas hit 100 $70 billion this year.

the global amount of such products under management has risen threefold to $10 trillion. it is forecast to talk 14 trillion in 2023. india's factory output shrank to the lowest level in eight years since september. a sharp fall in capital goods production underlines weak demand. the index of industrial production fell 4.3 percent. that compares with estimates of a 2.5% contraction, the lowest reading since october 2011. gdp data is due on october 29. and malaysia has had its airline safety ranking downgraded by the u.s., putting it on par with ghana.desh and makeup malaysia from category one to category two. the faa says it does not prevent

malaysian carriers from continuing existing services to the u.s., but does prevent them from adding new flights. 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 jessica summers. this is bloomberg. shery: hong kong police have fired tear gas at protesters throwing objects on tuesday morning. the cities rail and bus operators are also reporting disruptions in several areas after activists called for more protests. carrie lam has condemned the latest spike in unrest, warning protesters the violence will not help them achieve their goals. our coanchor discussed these issues on the fallout with hsbc at the singapore fintech festival. shery, you are right. the tensions in hong kong filtering into conversations at

the fintech festival. many expressed concern of the ongoing protests and are calling for calm after the escalation yesterday. many say that if the protests persist, they see that businesses are getting impacted. although the early numbers suggest otherwise. the question really is whether the falling quarters will see some more weakness. i caught up with the coo of hsbc, andy mcguire, and here is what he has to say. >> the numbers in hong kong held up really well. 87% of our profits. has been relatively muted so far. theink it is this -- if civil unrest continues, that will have a negative impact on us. i can see myself in everyday life, you definitely see it there. other sectors, it is a bit less obvious. but all of that has a negative impact on the economy of hong

kong. and none of that is good for us. we are the community bank and we are super committed to hong kong. we have done a lot of things to try and help the community in the meantime. but we cannot control the political situation, so that is beyond us. >> hong kong is already in recession. any clarity, any timeframe you are looking at? makeo think anyone can sensible predictions about that. we are totally committed to hong kong. we are putting a lot of effort and money where our mouth is on that. we just hope it resolves sooner rather than later and that will be good for hong kong and what is good for hong kong is good for us. >> what is your take on the status of the global economy right now? china trade tensions persist. will that eventually be reflected in your numbers? >> you already saw it in our results. particularly u.s. interest rates, which even though we are not that big in the u.s., so

much of global trade and our transaction banking business is driven in u.s. dollars. and many of the markets we theyte in globally are, -- are referenced currencies to the u.s. dollar. that is clearly how it will impact the record sector quarters -- second quarters. that is mainly around interest rates. you pile into the u.s.-china tensions. uncertainty around brexit. the unrest in hong kong. all of that makes for a tricky situation for us. we are looking our way through. -- working our way through. haslinda: we will be speaking with the president at -- the former ceo of deutsche bank. we will talk about technologies funding. the debt market, not just equity market. also the ceo. -- ask iflk about

they intend to tie up with the bank. teng plans to turn abu dhabi into a hub. more to come, shery. shery: thank you so much for that. goldman sachs saying it will reevaluate credit lines granted to apple card applicants. less than we expected. the bank has not and never will make decisions based on factors like gender and are committed to ensuring our credit decision process is fair. steve wozniacki is among those who complained of unequal treatment, specifically towards his wife. he told us changing the algorithm for apple cars is not the solution. articleswere a lot of saying it was alleging gender

bias as the only possible explanation. my wife thought that at first. i did not. i know that apple itself, for example, is the least biased of all the companies, the least is from a torah. we are the only big company in the united dates that guarantees equal pay for equal work by gender. so that was out of the thing. it was goldman sachs. you know what, they have listened. maybe because i got involved. i don't like to get special privilege. they got involved and they sought it out and they are really going to make the changes very soon that will allow you to get to a human. i don't believe looking into the algorithm is the solution. i do not believe changing the algorithm is the solution. i think it is somehow being able to get individual attention in cases that the algorithm misses. >> you did mention that part of the problem here is when you are trying to get someone on customer support for a company of this size, it can be really hard. you said it is too big. were you talking about goldman

sachs, apple, or both? steve: i am talking about all the companies that can be hard to get to. apple is good because you have personal, human to human support in the stores, with the employees, with the geniuses. good job of really making good support available. i decided that having a good product is not as good as having the support. >> when you choose to weigh in on something like this, especially apple related, it's probably going to get a lot of attention. you said you were surprised by how much attention those tweets can't. you mentioned -- those tweets got. did you hear from apple as well? steve: we did not hear from apple directly. they were contacting my wife, who contacted them months ago and called the phone number. i guess they had her number to call. they said they are going to have their standard number by the end of the week. now, telling us it will go

through to support people. the idea is to get to humans. you cannot expect instant solutions because there might be too much income, too much demand, and not enough supply, for a while. they are talking exactly right, the way apple would handle something like this. you're going to get on and support the customers. steve wozniak. coming up next, one major southeast asian nation is feeling more pain from the u.s.-china trade war than its regional peers. we will be in jakarta, next. this is bloomberg. ♪

haidi: this is "daybreak asia." i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. a common refrain is everyone loses in a trade war. but parts of asia are benefiting on the trade tensions as nervous

manufacturers build new factories and boost production outside china. however, indonesia is not among them. destination for foreign investment, it is struggling against its regional peers. our next guest says they need a new approach. he joins us from jakarta. you have advised several indonesian governments so far. does this administration of understand its shortcomings when it comes to foreign investments? >> while thank you for having me. well, thank you for having me. to answer your question, yes, it does. we have seen a real strategic approach to unravel the shortcomings indonesia has faced over the last few years in competition with various regional tommies. and many believe, including

myself, that the president's economic team has put forward the correct themes, priorities, and actions necessary to deliver on those reforms. we are cautiously optimistic, but we have to wait and see. the new cabinet has only been in office less than one month, so hopefully, we will begin to see some traction with regards to implementing various regulations and tidying up things that will allow more fdi to come into the country. shery: tell us what has been the biggest problem in indonesia and what should be prioritized when it comes to the reforms that the government needs to implement? well, you know, one of the challenges where indonesia has somewhat fallen on the back foot in these last few years has been the ability to attract a lot of the exodus for various competitive reasons of industries leaving china.

and part of that was the fact that the country had to overcome a huge economic infrastructure deficit. and what we mean by that is power generation that would allow the markets to be connected in such a way to allow for both domestic and export growth. a 450 billion dollar new spending package over the president's first term in office . the administration gets very high marks for implementing that. the challenge now is to begin to think concurrently, and not just in a linear fashion, of solving the infrastructure battle, but bottleneck regulations that add additional friction costs and red tape to facilitate additional capital formation, reducing the crowding out of various industries by state

owned enterprises, and looking at ways to begin to scale the andired financial capital intellectual capital that is still required for indonesia to import. haidi: edward, it is interesting. when this trade war began, we were talking a lot about indonesia as being kind of the new export powerhouse, to be able to benefit from a trade war . and it clearly has not managed to do that. in what aspects do you think indonesia is more competitive than some of the other neighbors? edward: first and foremost, it is a $1 trillion economy, the largest among the 10 economies of asean. it's median age is 30, which represents 73% of the entire population of the country, so it is trying to position itself to take advantage of this

demographic dividend that others simply are not able to position themselves for. so those were things that were going forward. the other aspect of it is that half of the gdp is a combination of both export driven and domestic consumption. indonesia has a really good balance with regards to its economy and it has demonstrated, over the years, very prudent macroeconomic policy and monetary policy that gives comfort and confirmation to investors, particularly on those with the sovereign bonds, to continue forward. but again, the challenges are that is just one aspect. it needs to be doing multiple things and priorities and actions concurrently. the president has empowered its coordinating ministers to begin to undertake that, so that we

can begin to see some confidence building and results that can tickle back into the private sector. haidi: what about the domestic demand side of the story for foreign investors? edward: the domestic demand is always there. i really iterate that indonesia is a middle income country and it needs to find and accelerate ways to break out of the middle income trap. that means how do we look at increasing the purchasing power of consumers here which would allow for a greater uplift both in consumption and gdp growth. those are priorities right now that the government has. i think indonesia in general these last two years has seen somewhat of a softening of that purchasing power, and again, the government is focusing on how can we find ways to increase that?

particularly if we are forecasting ahead of a global slowdown. mostly right now, we are looking at any fallout from the trade wars. and how does indonesia reposition itself to ensure that it is not only able to maintain that macro stability that has shown that also what is going to be the catalyst and what do they need to accelerate with regards to implementing regulations, broadening and deepening the capital markets, encouraging capital formation to allow both consumption and purchasing power to increase. co-founder, thank you for joining us from jakarta with the latest on the indonesian economy. we have an alert on the bloomberg. we continue to follow the developments in hong kong. we are hearing that many stations have been shut down. many trade routes and bus routes have been shut down.

we are looking at live pictures of hong kong as we hear from the state department here in the united states, urging the beijing to honor the commitments jointe in the declaration, including commitments that hong kong will enjoy a high degree of autonomy. the u.s. saying it is watching hong kong closely with grave concern that they are reiterating the call for humane resolutions to the hong kong protests. we have heard from many of theers in the area east new territories that passengers were asked to leave the train after some time. there were no injuries reported, but we are seeing some various incidents of bus routes, mtr train services being disrupted, along hong kong. we will have plenty more to come. this is bloomberg. ♪

shery: this is "daybreak asia." i am shery ahn in new york. haidi: more than 3000 personnel are battling bushfires in new south wales and queensland on a day that sydney faces its first-ever warning of a catastrophic fire threat. we are here with our australian managing editor with an update. in watche very much and see mode in sydney at the moment. coming into work this morning,

you could taste that smoke in the air. it is about 57 fires burning up and down the coast, and that smoke is blowing in. what we are waiting for now is the expected wind to change later on this afternoon that usts of up to 80 kilometers per hour. the fear is that they will blow embers up and down the coast. below them, as much as 30 kilometers closer into bush land , forest, even people's guardians, closer in sydney. and in fact, it is the first time ever, first time in the 10 years that we have had this fire danger rating system, that sydney has faced a catastrophic fire danger rating. shery: how common are these bushfires in australia? ed: bushfires are part and parcel of the australian summer,

but what is interesting is the season seems to be starting earlier and becoming much more severe. what you are looking at is the map with underlying data from the bureau of meteorology that shows that since 1978, the severity of bushfires and the length of that fire season seems to be growing. do not forget, it is only november here. it is a good two weeks before summer even starts. normally, it is not until way later in december, january, and february, where we start seeing bushfires of this magnitude. that bushfires season starting early has caused the delan polil debate to heat up as well. let's return to the unrest in hong kong. carrie lam is it do to speak in the next hour. now, we have the state department in washington releasing a humane resolution.

theie kamaruddin is on streets there. what are we expecting? i am just outside the chamber where we have seen a lot intensegue or very discussions between lawmakers, waiting on carrie lam to deliver her weekly address ahead of the executive council meeting and 45 minutes time. will be her of mind reaction to the violence that saw the shooting of a 21-year-old student who is in good condition but non-life-threatening condition according to reports. given the stance carrie lam has lawn, she says maintaining and order remains a key priority. the government will not yield to protesters so-called political demands. there is certainly a lot of tension as to how she may move forward from here.

we had a statement from the u.s. government, hoping for some resolution. dialogue to be had as well. earlier this month, we had acting chief executive matthew saying the dialogue will be held after the district council elections which may take place later this month given a lot of the activity that has taken place. that perhaps may be called into question. carrie lam did meet with xi jinping in beijing. whatll see whether or not she said -- what she discussed with him might be raised during today's address to be held later this morning. sophie kamaruddin in hong kong. we will get more on the situation in hong kong over the course of the next hour. they will be joining us on bloomberg markets to give us their outlook as another day of disruption hits the city. before we handed over to bloomberg markets china open,

let's take a look at how markets are trading across the region. of .25%.tside in south korea, moderate gains. recoup someing to of those losses but we are watching to see how the hang seng index opens in the next hour as we had some of those declines. a bitlia, downside with of correction after yesterday's robust session. we are seeing pretty flat trading. shery: that's it from "daybreak asia." our markets coverage continues. the china open is next. this is bloomberg. ♪ erg. ♪

>> it is 9 a.m. in beijing, shanghai and singapore. welcome to "bloomberg markets: china open." i'm tom mackenzie. >> and i'm david ingles. are counting down to the open of trade here. tear gas and transport disruption here in hong kong, after a man was shot and another set on fire. carrie lam is due to speak this hour. >> sterling climbs as boris johnson wins an election boost. brexit cheerleader nigel farage pledges not to fight the conservatives at next month's election. music hit the right note and jumps