♪ good morning. i'm sophie kamaruddin in hong kong. we are under one hour away from market opens in japan and south korea. shery: i'm shery ahn. welcome to "daybreak asia." ♪ our top stories this hour, hong kong heads to the end of a chaotic week. mustdent xi warns violence stop while the u.s. senate readies a vote on the city's status. trade talks set to stumble on farm purchases as beijing pushes

back on washington demands for enforcement. new details on the alibaba hong kong ipo, offering shares at $188 hong kong apiece. in on: let's check australian markets. we are seeing a slight gain for the asx 200, gaining 2/10 of 1% according to what i am seeing, pricing on the terminal right now, aussie shares set for second weekly advance, so a mixed picture. however, when the rest of asian central, stocks under pressure, kiwi stocks nudging higher, flipping up the board to check in on the kiwi dollar holding steady, not moving much as we hear from the rbnz governor this morning and he said despite a pickup in the economy, they are looking at pmi data hinting at that with growth returning in october, making for the highest reading this april. the kiwi dollar set for a weekly gain after the midweek surge and

on a surprise hold right there. we have the yen holding steady after the biggest jump in a month right there. let's get first word news with jessica summers. ♪ jessica: thanks, sophie. fed chief jerome powell calls on lawmakers to tackle the budget deficit. he urged congress to reduce the federal annual shortfall, which is approaching $1 trillion. powell such a large -- powell says a large deficit makes it harder for congress to boost spending if the next recession hits. -- thatdea that come countries borrow on their own currency is wrong and that that doesn't matter is wrong. debt sets a new high mark, surging above 200 $50 trillion the first half of this year. the u.s. and china account for more than 60% of new loans, the institution of ennis -- of

international finance says borrowing by governments, households and nonfinancial businesses accounts for 240 percent of global gdp, and the debt is growing faster than the world economy. ♪ president trump is asking the supreme court to prevent his tax returns from handing back from being handed to a process -- to a prospect -- to a prosecutor in new york. --see us -- he says he has is the first time the president's finances have been drawn into his business dealings. ♪ huawei is bracing for more pressure from the u.s. is attorney general william barr backs a plan to prohibit federal funding. this comes just days after the sec votes on an order barring u.s. carriers from using subsidies to buy network equipment from huawei and fellow chinese telco's ete. the companies deny u.s. claims

that they would be exploited for espionage purposes. ♪ tune in this week for a coffee with bloomberg television as we founder and ceo with a panel of distinguished guests in an exclusive discussion about digital sovereignty and the future of i.t. technology. airs at 10:00ren a.m. saturday hong kong time. global news, 24 hours a day on air, on tictoc and twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm jessica summers p this is bloomberg. ♪ -- i'm jessica summers. this is bloomberg. sophie: the u.s. and china are reportedly struggling to close a partial trade deal despite taking listing a ban on american poultry. unrest in hong kong is a key sticking point. the u.s. senate prepares to vote on the city's status let's discuss that with sarah mcgregor and stephen engle. stefan --

stephen, let's start with you, long for hong kong. i heard -- a curfew has been walked back by the government. the mouthpiece of the communist party, a state media tied to people's daily, put out a tweet saying that government was considering, or would come out, with a curfew this weekend. so today, saturday, and sunday. however, within the hour they deleted the tweet. the government of hong kong has now come out and said rumors concerning a weakened curfew were totally unfounded, they will not impose a curfew at this current stage. so a little bit of a caveat right there. right there. it is obviously still an option under the public order ordinance or the emergency provisions ordinance. the police, and their regular press conference, saying the decision is not up to them on the curfew, so they could not comment on it.

it is up to chief executive carrie lam. schools will be closed today, as they were yesterday, as ordered by the education department. they will be closed through the weekend. we also have an update, nippon daily saying the 78-year-old man hit with a brick in the head has passed away, so a fatality tied to some of this violence we saw ofs week, the escalation violence. also a 15-year-old boy who had brain surgery after being hit in the head, supposedly by a tear gas canister, is said to be in critical condition. so the protests, the protesters are vowing to continue to have disruptions today, for a fifth consecutive workday and around. held aers also here last light vigil night. it could shape up as another disruptive evening. shery: and u.s. lawmakers are becoming more vocal against the violence in hong kong. could we see congressional action? stephan: yes.

at looks like the hong kong pro-democracy and human rights act is gaining traction, according to senator marco rubio. he said it has been next i -- it has been expedited. a senate aide says it could be voted on next week. the house and senate versions would have to be reconciled before it goes to president trump. no idea yet on how trump might act on that bill, because he is still trying to settle a trade deal, at least a watered-down trade deal with the chinese. in beijing authorities have already said that they will produce some sort of countermeasures to the act if it is passed on capitol hill. also, the ministry of foreign affairs in beijing late last night, warning of retaliation if that bill passes. this is what marco rubio said in a statement. the world witnesses the people of hong kong standing up every day to defend their long-cherished freedoms against

an increasingly aggressive beijing and hong kong government. now more than ever, the u.s. must send a clear message that the free world stands with hong kongers in their struggle. the president of china also sending a strong message speaking in brazil, he denounced the violence and said continued, radical crimes have seriously trampled on the rule of law. stopping violence on restoring order is hong kong's most urgent task. but again, there is no plan necessarily, other than the increased use of force by police to stop the violence. there is no political solution to resolve what many say is a political impasse. the whole situation was exasperated again yesterday by -- was exacerbated by the chief secretary yesterday, clarifying a lot of speculation about that late night, 10:00 p.m. wednesday meeting by carrie lam and her senior officials at her office. matthew chung, saying, we didn't have a specific purpose of that

meeting. so that really raised a lot of concerns. there is no specific purpose, the city is in crisis. shery: lots of questions. pro-hong kong democracy legislation being passed in congress, that wouldn't really help the trade move. what progress or lack of progress are we seeing in trade negotiations? absolutely, any addition of tension in these talks right now seems like a serious matter. it seems the u.s. and china, they are publicly telling us things are progressing. we heard president trump yesterday saying things are moving very rapidly, but what we are hearing from sources, what is being reported is that there are snags along the way. china repeatedly promised to buy more u.s. farming goods. they know how important that is to trump politically read farming states are going to help carry him in the 2020 election, but right now even that is up in

the air. what are they going to buy, how much, will they commit to specific targets? china told us yesterday they want these tariffs rolled back periods -- rolled back. trump said himself that is not going to happen. we can already see cracks in the arguments the two sides are making as they had toured a face-one deal. there is plenty of skepticism if and when that can happen. sticking to that point around american farmers and how they are feeling the pain from these trade talks from the tariffs, certainly no relief, given the snag we are seeing in trade negotiations. sarah: absolutely. a report today from the kansas satral -- kansas federal deserve board is saying their study shows farm bankruptcies are up and this pain, this quantifies the pain farmers have been saying repeatedly that they have been feeling in the u.s., from

chinese retaliatory tariffs. so it is not really a theoretical argument. this is hitting them where it hurts. ended also showed a lot of their income this year is going to come from things like federal government support. this is not something farmers want. they want to sell their products, lanna had to be able to access markets freely and at the lowest cost. quantifies and puts a face on the trade pain that is being felt, and why it would be important for trump to at least make his best effort to get a deal with china. shery: sarah mcgregor, senior trade editor, thank you for joining us and also to chief asian trade correspondent stephen engle. more on trade ahead. jack ma says u.s.-china relations could face decades of turbulence if they are not careful in how they handle trade talks. we will bring you our exclusive interview. sophie: up next, fed chair jay

powell sounded mostly upbeat on his second day of congressional testimony, but highlights warning signs that could derail the economy this is bloomberg. ♪

♪ >> the u.s. economy is the star economy. we are growing at 2%, it in that range, so more than any of the other advanced economies are growing. and there is no reason to think that that can't continue. >> three rate cuts this year has put policy stance in a very good place to make that baseline come out where we need it to. >> the economy is in good place and monetary policy is well. -- is as well. forecast is inflation moving back to 2%. >> and fleshman expectations reside at a low engine of the range i consistent with -- i consider consistent with our price stability mandate. >> there is no reason i see the

probability of a recession is at all elevated. officialseral reserve with a favorable outlook of the economy this week as investors await fomc minutes next wednesday. chairman powell was even more upbeat in the u.s. economy on his second day of testimony before congress, calling the usa reformer and seeing few threats that could derail growth. but what about the slowdown in the rest of the world? economics editor kathleen hays joins us. kathleen, fed officials seem confident they don't need more rate cuts. kathleen: absolutely, and it is understandable. jay powell, day two of his testimony to congress, answering all kinds of questions about the budget end economy and about so many aspects of what the fed is doing and looking at. but bottom line, it is clear that with jobs growing, with the consumer still spending, that the fed figures we have done three rate cuts, it is time to

sit back and watch. here's what jay powell said. >> the u.s. economy is the star economy these days. we are growing at 2%, or in that range. so more than any of the other advanced economies are growing, and there is no reason to think that that can't continue. there is no reason to think, that i can see, that probability of a recession is at all elevated at this time, although our forecast and our expectation is very much of continued, moderate growth, strong labor market, inflation close to 2%. besides hearing from jay powell on day two, we heard once bullard,m joe president of the federal reserve bank of st. louis. throughout the time when the fed paused and was getting ready to cut rates, he was one of the loudest bangers on the drum, we need to cut rates, do more, worry about the yield curve. jim even said today it makes

sense to wait and see how the economy reacts to these three rate cuts. so he has pulled in his horns and says, a lot of people are looking at the yield curve, it is steep again, john williams at the federal reserve bank in san francisco saying economy and monetary policy is in a good place, one of the new fed mantras. fedlow inflation gives the the luxury of running the economy hot. i think that is very important as well, because what it means is, even if they see unemployment lower, even if they see inflation rise a better wages rising, they are going to sit back and wait. so it seems like a good place for the fed and maybe markets as well. on the u.s.s upbeat economy, but what about uncertainty over trade on the global economy? kathleen: well, look what you

have got. the past 24 hours have shown the u.s. may be in a good place, but a lot of other countries are suffering from the impact of the year and a half long trade. actually, only up 0.2% in the third-quarter and they were spas to have a 0.9% increase. that is not good for the world's third-largest economy. china is posting it smallest increase in fixed asset investment in two decades per week industrial profits, weak manufacturing, german gdp up in the third quarter after being down -- being up only slightly in the third quarter after being down. if the trade war doesn't do enough to reassure investors, there could be a further slowdown in the global economy and that is the kind of thing that could have the fed rethink its decision in the future. shery: kathleen hays, thank you. later we will have kathleen's exclusive interview with the anz governor after he defied

cut and kept rates on hold. we turn now to a wall street expert, denise simon is cohead of debt at lazard asset management. you withreat having us. we talk about the fed being on hold as well as others central banks in new zealand, but we have still seen financial conditions being loose, the gdp chart on the bloomberg right now showing financial conditions remain accommodative. how is this for emerging markets? >> it is very supportive. we have seen manufacturing pmi's and emerging markets looking like they bottomed out during the summer. so for this to be sustained if there is a phase-one trade deal, you could see that sustained. and when we look at forecasts for emerging markets growth next year, it is focused to pick up relative to developed markets. so i think financial conditions have been supportive, along with

many emerging market central banks think able to ease as well. you note interesting opportunities in emerging markets like ukraine, brazil, mexico, indonesia. mexico -- brazil, fitch ratings says brazil is still junk, they reaffirmed the rating. how big a mismatch is there, with investors rewarding brazil because of reform programs? >> when i look at brazil, the opportunity is right now in the currency side, because you have seen in brazil also growth picking up. we are expecting it to bounce back to around 2% next year. now that we have pension reform out of the way, the government is now focusing on growth-oriented reforms that i think could be supportive for the rial. and when you look at the sovereign credit curve, it is trading well, with investment-grade peers. so rating agents, the market is

sort of a head of where the rating agencies are. turn todenise, let's mexico. we saw mexico cut rates against -- cut rates again to support growth. see road the mexican peso, or will rates have to fall further? high in are still mexico. headline cpi is close to the central bank target of 3%, but even with the cut today, that leaves policy rates at 7.5%. so you are talking about real rates over 4%. that is the highest, really, and emerging markets outside turkey. central bank has been extremely conservative in this right-cutting cycle, and real rates are still high, which i thing supports the currency here. sophie: when could you see the easing cycle coming to an end for mexico? and what could that mean for peso potential depreciation? >> where the market is pricing in another 130, 150 basis points

of cut, that would put the policy right in the low 6%, that could be supportive, but what would be more important is if we do see growth pick up in mexico. it has been flat this year. it depends on what will happen with usmca. there is a possibility that could get past this year. that would be supportive for the currency. sophie: turning to indonesia, we anticipate trade data later today. the government anticipates a higher-than-expected budget deficit in 2020 and to support growth, various tax incentives are in the cards. what are you seeing about indonesia? >> it is a very stable macro picture in indonesia. you have policy, political continuity with the elections earlier this year. they just had a cabinet reshuffle. kept the finance

minister. i think it is a very balanced approach. you don't have a lot of vulnerabilities there. real rates are also very high in indonesia. the policy rate is at 5%, inflation is running at three .25% -- 3.25 percent. it is one of very stable macro management, no major vulnerabilities, still attractive kerry and less sensitive -- still attractive carry, and a less sensitive closed economy. shery: is the china credit profile as healthy as numbers suggest? we are seeing fewer corporate defaults than laster, but there are doubts about whether there are private settlements behind the scenes. >> that is possible, but i think when you look at default rates in china, they are still very low, as you pointed out. and it is normal that if you are going through a slow down, you are going to see, just like you would in the u.s. or other developed economies, a pickup in

defaults. with default rates still around 1%, i don't think it is a concern at these levels. having youse, great with us. denise simon, lazard asset management cohead of emerging market debt. plenty more to come on "daybreak asia." this is bloomberg. ♪

♪ sophie: you are watching daybreak asia. a quick check of business headlines. motorola is rebooting the flip foreign -- the flip phone. device reprises the razor name and looks like a modernized version of the original. it costs 1499 dollars and will be available for preorder in december in europe. shery: and affiliative top apple supplier foxconn is ready to invest more than 2 billion

dollars to expand output in taiwan. decision will be the largest migration of tech production away from china biotime we knees -- from china seekingwanese company to avoid the trade war. sophie: alibaba has picked numbers for its offer price in the city. shares will be offered at $180 $188 hong kong-- each. reports say there has been in the norma's response to the listing which could raise 15 billion u.s. dollars. jack ma says the u.s. and china are facing 20 years of turbulence. our exclusive $188 hong intervi. this is bloomberg. ♪

♪ shery: this is "daybreak asia." i'm shery ahn in new york. sophie: i'm sophie cameroon and in hong kong. jack ma says u.s.-china relations could face 20 years of turbulence if they are not careful in handling trade talks. the alibaba founder spoke in togo in west africa on a tour to mow his digital economy initiative. the trade war might be u.s. i-china relationship -- a u.s.-china relationship may be in turbulence, the next 20 years

it may last. we have to be very, very careful. i think it is so important for china and the usa, two great countries, to work together keepingng economies, prosperity, sharing a lot of technologies together and for so many years the china and the u.s. have been working together. there is a problem. that is very natural. if there is no problem, that is not natural. so when the problems, we have to solve the problems. we shouldn't create more problems. >> and you have said that you actedfrica and you have as a bridge between china and africa. what do you see as the main thing china can gain from africa, and vice versa, the main thing africa can gain from china? : well, i have loved africa

since three years ago, my first trip. i read a lot of things about africa, but i came here as a novice. and i am inspired by the people, young people, so many young people, and inspired by the origin of the cultures. i would comeded that every year, at least to three or four countries, and i have tried to visit every country in 10 years. . i would not say how china can help africa or how africa can benefit from china. as a global citizen, as an entrepreneur, as an entrepreneur who has been working in the world for 20 years. i think a lot of our experience, our ideas, our know-how, could enable and help african young people. years, ihile, these

start to think how china can help in a more efficient way. china is putting a lot of efforts in africa. when i was very young, i hurl a lot of -- i heard a lot of doctors in my hometown, they had to go to africa for years to help. china andk today, africa, there are a lot of things, similarities. africa can learn a lot from china on how china developed in the past 20 years in such a quick way, how we lifted the poverty out of that. is there still a plan to lift find it -- to list financial? not in a, but we are hurry. we don't have a plan for that yet in the short term. first, we are very profitable, we have grown very healthy, and i think we have a lot of things that we want to do in these

years to make sure we have enough investment for the future. do you knowd list, what exchange would be looking at? jack: just like i say, we are not thinking about when to marry, so we are not thinking about where to marry yet. shery: alibaba co-founder jack ma, speaking exclusively with bloomberg and togo. let's get first word news with jessica summers. faces a fifthkong consecutive week day of disruption as protesters step up their campaign in the business district. the unrest is hurting the economy and undermining public and corporate events. conferences hosted by cathay pacific and jp morgan of the latest to be canceled following the collapse fireworks displays, theater shows and a leading charity run. ♪ the u.s. senate is preparing to accelerate legislation in

support of the problem -- the pro-democracy campaign in hong kong. it will place the city's special trading status under annual review. the bail is set to come to the floor unless there is an objection. bill sponsor marco rubio denounced the hong kong government and what he calls aggressive beijing. china has threatened action if the bill passes. ♪ new delhi remains in the grips of choking smog, residents urged to avoid all outdoor physical activity. the average air quality index exceeded 460. that is nine times the level recommended by the world health organization. in some places, the index even crossed 500. schools in the capital will remain shut friday, and traffic movement is restricted. ♪ and bushfires continue to rage across eastern australia and are clearly visible from space. at least 60 fires are burning in new south wales and four people are known to have died.

the blaze is threatening northern sydney were brought under control, but residents of queens land are warned the weather is expected to turn hotter and drier. global news, 24 hours a day on air, on tictoc and twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm jessica summers. this is bloomberg. ♪ shery: let's get a quick check of markets. we are seeing kiwi and australian stocks gaining grounds for second consecutive session, kiwi ground -- kiwi stocks gaining .5% after interest rates held steady. the asx 200 now being led higher by real estate and consumer discretionary stocks, every sector is in green. we continue to see pressure on after weekdollar

employment numbers yesterday. nikkei futures are unchanged but the japanese yen is seeing its longest winning streak against the u.s. dollar since may. u.s. futures, unchanged. at least one company, rh, the former restoration hardware, seeing shares jump in extended trading after berkshire hathaway revealed it has a stake in the furniture company. this is a deadline for hedge funds to file their quarterly aps which provided peak into the biggest names on wall street. su keenan the latest. su: this is how the billionaire big boys on wall street play. to show how widely followed the filings are, look at how restoration rh performed after hours. at one point it jumped 9%. it still is holding a 7% gain, after it was revealed berkshire hathaway had taken a 6.5% new state, and to sigma investment also upholding in the company. if the big guys are going in

there, why not everybody else? that is how the reasoning goes. these are historic looks of the prior quarter. they don't tell us current positions, but still a fascinating look. look at some big moves, again berkshire hathaway, cutting a lot of its positions while it added to rh. it cut bets on companies that include apple and phillips 66. meanwhile, drunken miller duchesne adds shop a five and , coleman steiger global management got in on several ipo's and there are several hedgecalled tiger cubs, fund managers that are closely followed as well. sophie: we saw sentiment looking mixed around big tech companies. : it was a love them or leave

them situation. take a look at how banks performed in the latest session. they have been on the comeback trail in terms of the selloff that took place many weeks ago, in terms of momentum players being dumped. money managers piled into facebook. harvard university's endowment was one of those. appaloosa management, d1 partners notably, a hot fund on but notet right now, every fund was buying. we had these stocks all cutting stakes in these banks. sophie: thank you, su keenan. up next, unrest in hong kong is business anding taking lives. the latest on the violence as we await fourth-quarter gdp. this is ♪ bloomberg.

♪ shery: this is "daybreak asia." i'm shery ahn in new york. sophie: i'm sophie kamaruddin in hong kong. protests in the city have dragged on for months and are affecting business, the economy, daily life and the pain shows an economic data. today, a final reading of third-quarter gdp. economists expected a decline of almost 3% and say things will get worse before the year is out. let's discuss it with carlos casanova, carlos, hong kong faces a deeper recession and the government has attempted to shore up the economy with stimulus and relief measures. what more can they do? carlos: we did see a slight downside correction to the q3 figures.

it was significantly worse than what we all envision for the third quarter. as you say, it is about external pressure weighing on demand and that has been happening since you won. but protests had an impact on consumption. to mute the impact, authorities implemented fiscal stimulus. but with a .6% of gdp, the package is not going to be big enough to significantly change growth rate going forward. we are looking at potentially negative growth this year and weakness in the first half of 2020. sophie: focusing on domestic consumption, that is under pressure, retail sales slumping. what more pain do you see for that space? the retail side, we have seen retail sales contracting negatively. that is a result of the fact a lot of commercial arteries in the city have been blocked for many months now, during the

weekends. but one factor, a big contribute in factor to domestic demand in hong kong is the fact that tourism numbers have fallen significantly, specifically mainland tourists who just don't want to come to hong kong at the moment because of the protests. cases ofy previously social unrest in hong kong, in 2014, it will take a number of months, up to one year before normalization. so going forward, we expect this weakness in double digits in the retail space will continue. they have done something to alleviate pressure on retailers. a good example is that a lot of ai -- have waived rentals in the government has given them tax incentives to lower rentals for real estate, but overall it will not be a good year for retailers. besides retail there is anything in hospitality, hotels,

restaurants, also seeing declining demands. we expect that will show in weaker profits in the fourth quarter and throughout the first half of next year as well. shery: on the plunge of mainland tourists coming to hong kong, the dtv showing the drop off -- showinghey g the drop off of chinese tourists going to other countries. what does this mean? can the hong kong economy recover without mainland tourists coming back? you look at exports, because exports of services are such a large chunk of the economy, they are still stable. a very big of the economy is consumption, but we still have the finance industry, which has so far been ok, given everything happening with the protests. we believe that will continue to

be the case. retailers will definitely have to readjust their model. a lot of them were doing this already, because they perhaps had overcapacity in the retail space and were already thinking about reducing some of their retail outlets in the territory. with the current protests, i think a lot of them will have no choice but to consider some closures, which will have implications more broadly for landlords, but also in terms of employment. we are going to see a landscape which is a lot more constrained than what it has been in the past. and we continue to see liquidity tightening in hong kong. is the hong kong dollar currency peg under threat? carlos: the topic does come up every so often. one of those, that time again. in our opinion, that the political will to continue to

defend the peg is still there, they have enough to install buffers and determination in terms of capital outflows has not been lacking in determination yet. we do see outflows from the territory now, but given how bad social unrest has been, we are not at a stage where we have to worry about there being a decoupling or a breakage of the peg. if you look at what the market is saying with one-year ndf etc., we are not seeing a lot of pressure yet. but if the situation deteriorates considerably, we would reevaluate this scenario. seeing carlos, you are session every risk in japan, seeking to boost spending. would that be sufficient to keep the economy going? carlos: we have three economies earlier this year that were penned to enter a recession singapore managed to avert the recession in the third quarter by expanding by a very narrow 1%. japan is the other economy we

expect will enter a recession, perhaps first quarter 2020. gdp figures were very weak for the first quarter. and notwithstanding this effect, they managed to grow slower than expected. that is picking up a lot of weakness on the external front like all countries in asia, exports are contracting but domestic demand did pick up significantly. when we have a sales tax hike and cup and -- in japan, a lot of consumption gets frontloaded. that did not happen as much as we expected per going forward, we expect a negative effect on consumption, which coupled with a falling exports will have a sieve -- a downturn on the economy. there is a call for some sort of fiscal stimulus package, and the main reason for this is to prop up consumption, but you also will see falling investment, as a lot of infrastructure for the

2020 olympics is already finished. so they need to do something to keep the economy on track. it is not going to reverse downside pressure, it is just going to keep it afloat. shery: we have eco-data out today, male asia quarterly -- malaysia quarterly gdp, trade numbers. what are you watching? carlos: we are looking at payinga q3 figures and close attention to the esp yesterday. that might have implications for other central banks of the region. malaysia, we expect it to drop a little bit from the 4.9% we saw in q2, and that is a result of external pressures. so malaysia has seen exports to europe increase, but overall exports were down -- are down. end domestic consumption keeps on boosting gdp, but we think it won't be significantly enough to grow the aunt 5%. so we are looking at still a so they are4.5%,

not in a position to stimulate but will become a lot more dovish going into 2020, especially if the outlook in asia deteriorates. shery: carlos casanova, thank you for your insights, asia-pacific economist. the reserve bank of new we -- of new zealand surprised markets by holding its cash rate at 1%, defying a cut. kathleen hays spoke exclusively with governor adrian orr earlier kathleen, what did we learn? wasleen: governor orr upbeat on the economy, but not really upbeat. after all, they did choose to hold rates steady. but when i asked him if they would be willing to look at cutting in february, he said, i don't know if i can talk about february. it is clear their concern is that the forecast for more upbeat growth over the next year or so, pulling out a bit of a slump and moving higher, is

something he realizes is still in question, even though he is hoping and betting it is going to come true. let's listen. is tonightt thing that an interest rate at 1% end a very low, flat yield curve is highly stimulatory for the new zealand economy. and the exchange rate for the new zealand dollar has been below measures of fair value. stimulatory to more nature. ended has been for quite some time, over the last year or so. so despite global growth slowing, our terms of trade, our export processes have been fairly positive relative to other commodities. so the trade and exchange rate side has weakened, the interest rate side we are seeing it, there is blunt, broad talk, we are seeing it at least maintaining spending, because households are spending at about the nominal income rate. real wages have been rising, employment is near or next to

unbelievable, so people have jobs, incomes, they are spending, and the real confidence comes down to the government entering the fray. >> are you counting on fiscal stimulus from the government? very much so. they are feeling suitably cashed up, and there are demands for government consumption and a lot of government investment is planned. kathleen: when you decide to keep rates on hold, i assume you expected some kind of market reaction. i am wondering if it was more than expected. the kiwi dollar finished up more than 1%. was it a surprise? >> now, it wasn't a surprise. one of the biggest debates was whether it was one person -- 1% or 1.75%.

any central banker's desire is that you can deliver a message which leaves conditions broadly in the same space as where they were. and that of what has happened. you saw the kiwi bounce back again, and there are all different shades of loose stimulatory labels for the exchange rate and the interest rates. message tont give the market is that interest rates are low for a prolonged period. , the bestss economy thing you can do is just tell me the interest rates are going to be there for a while. so that is the message. there is a lot of policy uncertainty, geopolitical uncertainty, climate change, reactions to that, that is what is worrying new zealanders. kathleen: a somewhat upbeat view. he and knowledge is -- he

acknowledges concerns new zealanders have. much a big impact from the trade war on u.s.-china trade, and i asked him if they have to cut rates using conventional tools, he said they are not in our core forecast. anything is possible. if we have to do anything, probably a negative wholesale interest rate on the short end, but he is somebody said he has a forecast and sees reasons why the economy should pick up and that is where the rbnz is for now. sophie: kathleen hays, thank you. morehead on "daybreak asia." this is bloomberg. ♪

♪ sophie: uber has been hit with a tax bill in new jersey. it owes the state $615 million in unemployed then -- unemployment and disability insurance charges for miss classifying drivers as

independent contractors. the bill goes back for years and includes about $120 million in interest and penalties. hoople -- uber will challenge the ruling. it considers its drivers independent contractors. of 660 eightloss dollars -- $668 million for syntel, the first time sentelle has reported a quarterly loss, which is worth $490 million u.s.. the ceo of singtel says we global demand has hurt and expects conditions to continue into 2020. sophie: ocbc is said to have decided against making a bid for permata.

the ownership company has a market value of $2.4 billion. shery: over the next hour, "daybreak asia." the market open is next. this is bloomberg. ♪

>> good evening from bloomberg's global headquarters. >> asian markets have just open for trade. welcome to daybreak: asia. shery: hong kong nears the end of a chaotic week. president xi warns the violence must stop while the u.s. status -- u.s. senate readies a vote. optimistic about hong kong ahead of its upcoming listing. a ticker code rhymes with prosperity forever.

stumblelks are set to on farm purchases. beijing is pushing back on washington's demands for enforcement. sophie: we are seeing a little bit of risk appetite at the start of asian stocks. sluggish data from japan and china. they and is holding on to a five-day gain. tokyo stocks are slightly higher . jgb's are holding after a onease valve operating industrial output. the kospi holding steady. little changed after thursday's event. the korean won up a 10th of 1%. we are keeping an eye on the finance ministry's monthly economic assessment report later this morning. korean report cards to react to. we are watching chip players after applied materials offered a forecast that topped estimates.

of samsungng shares to the downside. let's check in activities this morning. aussie shares building on thursdays gains. qb stocks closer to 11,000. aussie and kiwi dollars holding onto recent losses. the q. week not moving too much. we heard from the rbnz governor this morning on why rates will be a little bit longer. let's get the first word news. are.s.-china trade talks said to have stumbled over washington's demands that beijing spell out how it plans to purchase as much as $50 billion of farm produce a year. we are told chinese negotiators are pushing back on that proposal that they provide monthly, quarterly, and annual targets. beijing continues to insist the two sides must agree to a rollback of tariffs.

>> it is so important for china and the u.s., great countries working together, to keep people and for so many years, china and the u.s. were working together. there is a problem. that is natural. powell is calling on lawmakers to tackle the growing budget deficit, speaking to the house budget committee, he urged congress to reduce the federal government's annual shortfall approaching $1 trillion. powell says a large deficit makes it harder for congress to cut taxes or boost spending when the next recession hits. thate idea that countries -- their own currency cannot get into trouble is wrong. local debt has set a new high

mark. for the first half of this year. the u.s. and china account for more than 60% of loans. the institute of international finance says borrowing by governments, households, and nonfinancial businesses now accounts for more than 240 percent of global gdp and the debt is growing faster than the world economy. 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. this is bloomberg. >> hong kong faces a fifth consecutive week day of disruption this friday. the long-running unrest hitting the economy and undermining public events. stephen engle joins us now. anxiety building over what could be the next move from the countries governments and the carrie lam administration. >> she had a late night meeting

wednesday. there was lots of speculation as to whether she was reviewing further emergency orders she could have at her disposal under the public order ordinance. however, we heard subsequently yesterday from the chief secretary, her deputy, that that meeting did not have any specific purpose. it all came at the same time yesterday we got word from this tweet from the global times out of beijing that the government was preparing a curfew for this weekend. presumably beginning today. the global times later deleted that sweet. the hong kong government has come out and denounced that, saying the rumors concerning weekend curfew are totally unfounded. they will not impose a curfew at this current stage. i'm not saying the government does not want to do a curfew. i am more saying they probably have no means to actually enforce it. they already had the facemask

ban. protesters have ignored that. having a curfew and enforcing it throughout the city of seven and a half million people would be very difficult. shery: we have seen growing international condemnation of the police in hong kong. could we see action from the u.s.? >> yes. marco rubio of the u.s. senate is saying they have expedited the process for voting on this, hong kong human rights and democracy act, which would require an annual review of hong as well as hold accountable with sanctions against individuals in hong kong and in china who congress determines impede the autonomy hong kong is supposed to enjoy under the basic law post the 1997 handover. marco rubio said, we have made very significant progress today. then an aide of the senate is

saying a vote could happen as early as next week. then the congress would have to reconcile differences between the house version and the senate version. , theyrse, the white house want to get it done, hammer out a deal with china on the trade front. throw ald perhaps monkey wrench into the plans there. affairsstry of foreign in beijing thursday warning of retaliation if that bill passes. talking other aides about unspecified countermeasures if the house and the senate passed that. and of course of donald trump signs that into law. the hong kong human rights and democracy act. one more thing happened overnight. the government is denouncing what the justice secretary has said was a violent mob that attacked her in london.

she was slightly injured. the statement saying seriously bodily harmed. on an officialon visit. she was confronted by some pro-protesters in london for the hong kong movement and was -- >> with protests happening in the other parts of the world in -- u.s. senate, china will china partly opposes this foreign intervention. >> let's bring up that quote from president xi jinping. nothing necessarily new in his words, but the fact he is coming out while on third-party soil in brazil to comment on hong kong shows how important the situation is to him. he denounced the violence.

radical violent crimes have trampled on the rule of law. he says they will continue to firmly support the chief executive carrie lam to govern in accordance with the law. also firmly supporting the judiciary in hong kong to severely punish what he called the violent criminals in accordance of the law. they are already calling them criminals. ahead. more on hong kong a beijing friendly candidate calls for free elections in hong kong. our interview coming up later this hour. shery: next, why the trade war headwinds will turn into tailwinds early next year. this is bloomberg. ♪

shery: this is "daybreak asia." talks between the u.s.

and china have hit a snag over farm purchases as officials seek to lock unlimited trade deal. if we can avoid further escalation of tensions, trade headwinds are likely to start turning into tailwinds in the new year. ygesen joins us in hong kong today. we are seeing optimism in the latest survey. rebound, do in the you think that might be too early given the soft singles -- soft signals? >> think we are seeing encouragement. even in europe, where the weakness has been more pronounced. think you have been seeing the past few months is economic data continues to show the economy is doing well. there is trade uncertainty being picked up at the same time. my guess is we are starting to

embracing the idea that demand is priced strong. >> adjustment perhaps gives that landscape more stability. >> that is what i think. the other thing is we have seen continued escalation in the trade war. you saw the fed's research discussing the timing, a negative effect would come. it seems to be around the end of this year. what you will be left with is a powerful policy stimulus triggered by the same events. you taking any risks from tariffs being placed on china if this negotiation -- ofthere are reports now

negotiations. my feeling is the stakes are too high for the u.s. president to let this stand in the way of some kind of cease-fire. if you see the deal that is currently being negotiated, it would be some kind of scaling back of tariffs. that is what we mean. if you rollback a negative, that starts to be a positive. this gtv chart showing you that the 10 year treasury yield versus the s&p 500, looking like this. are we going to see more rotation through equities? >> that is what i think. it is an unusual situation. more and mored direct return in equities, that is a sign of the fear gripping markets. look at the investor sentiment

surveys. we are starting to see signs that money is being shifted into equities. the last couple months, what you have really seen is bad news lifting sentiment, but if you start raising growth expectations on positions in negative yielding funds, that is the closest you want to sit if it turns out the economy is weakening. we havetalked -- shery: talked about the pressures facing the economy, especially in germany, but to take a listen. >> we always described the situation with something like cautious optimism. data fromk at all the weers, you will understand will see better growth next year. with hisuld you agree

sentiment that the german economy is still doing fine? or would you cymer with the ecb? >> -- side with the ecb? >> you can see retail sales are picking up. lending is starting to accelerate. whether these are indications over the first part of 2020, the euro zone economy could pick up. it's not going to be poignant. buoyant.nt -- >> thank you so much. a quick check of the latest business flash headlines. theon is to protest pentagon's decision to award a contract to microsoft worth $10 billion. amazon says there has been, quote, unmistakable bias and political influence.

the contract has been expected to go to amazon web services but was given to microsoft. >> uber has been hit with a taxable in new jersey. it owes the state millions of dollars in unemployment and insurance charges for mis-classifying drivers as independent contractors. the bill goes back four years and includes 120 million dollars in interest and penalties. huber says it will challenge the ruling because it considers drivers to be independent contractors in new jersey. sophie: tesla is on the up after a recommendation for the model s3 by consumer reports. the cars earned an average rating in their liability report leading to the renewal of -- that were moved earlier. the survey was dominated by japan and korea. you can get around up of stories

to get your day going in today's edition of daybreak. bloomberg subscribers go to dayb go. it is also available on the bloomberg anywhere app. ♪

."ery: this is "daybreak: asia sophie: an offering that could raise 12 billion u.s. dollars. our asian tech editor is watching the developments. recap why alibaba is doing this. >> multiple reasons. primarily, it wants to broaden its investor base and also it has been a long-standing ambition of jack ma's to list in hong kong. back in 2014, they came that close. they chose reasons,

elsewhere. this is a homecoming of sorts for alibaba. with a move to gain favor the chinese government as well as with investors within the region. shery: alibaba is saying they missed out on the hong kong with regret back in 2014. what are we expecting in terms of the ongoing hong kong protests the echo do we know if they will have any impact on this listing? >> the executives have said basically the protests, which as ,ou know have become violent have not really detracted from the plan. i think they are looking over the long term. a lot depends on the market situation. we have seen liquidity tightening in hong kong. this really will not help, though. liquidity has tightened.

i think also a marquee name like alibaba will draw interest. reported the slowest pace of profit growth in several years. feather in the a cap foreign exchange that has seen a lot of chinese technology corporations float abroad. alongside tencent is a victory for the hong kong exchange. >> picking up a stock code that is really auspicious. what else can we see next for the offering? >> the pricing of 188 is for retail investors. it is an auspicious number. i think it is meant to appeal to mom-and-pop investors like you and me. guess, a savvy move.

it remains to be seen how they price the international offering. say in today's statement, it could very well be higher or it may be lower. more speculation over what that pricing could be when it comes to the international investors. thank you so much. jack ma says u.s.-china relations could face 20 years of turbulence if they are not careful how they handle trade talks. the alibaba co-founder spoke with bloomberg in west africa on a tour to promote his economy initiative. >> if you do not handle carefully, the trade war might , a u.s. and china relationship, in some turbulence. careful.o be very i think it is so important for

china and the u.s. to work together. the supporting economy. share a lot of technology together. years, china and the u.s. have been working together. there is a problem. that is very natural. if there is no problem, that is not natural, right? we should not create more problems. >> you said that you love africa . you have acted as a bridge between china and africa. what do you see as the main thing china can gain from africa , and vice versa, the main thing africa can gain from china? >> my first trip to africa was three years ago. i let -- i read a lot of things about africa.

i was inspired by the people. so many young people. i was inspired by the origin of the cultures. year -- that i, every but i come every year. that how china can help africa or how african benefit from china. can benefit from china. i think a lot of our experience, our ideas, our know-how, can enable and help african young people. meanwhile, i start to think, how

can china help in a more official way? china put a lot of effort in africa. , i heard avery young lot of doctors in my hometown, they have to go to africa for a year to help. africa,today china and africa can learn a lot from developedt how china in such a quick way, how we lift poverty out of there. we are not in a hurry. we don't have a plane yet in the first, we areause very profitable. we have a lot of things we are year makingthis

sure we have enough investment for the future. >> do you know what exchange you will be looking at? >> we are not thinking about where yet. >> jack ma speaking with bloomberg. are a look at how markets trading in asia. the nikkei under a little pressure. we continue to see strength for the japanese yen. it has seen its longest winning streak against the u.s. dollar since may. the kospi holding steady. the asx 200 being led higher by real estate and consumer discretionary stock. we continue to see protests around the city now.

the hong kong subway operator haveg the west rail lines been suspended. coming up next, the rbnz governor says rates need to remain low for a long time. that interview next.

>> president trump is asking the supreme court to prevent his tax returns being handed to a prosecutor in new york. he is filing an appeal that aims to give him broad immunity to criminal investigations while in office. it is the first time the justices have been brought into the president's personal business dealings. the case will test their willingness to intervene on his behalf. president trump's personal lawyer rudy giuliani is facing a federal investigation for possible campaign-finance violations and failure to register as a foreign agent. u.s. officials say the inquiry could include charges on conspiracy or breaking laws

against bribing foreign officials. it presents a serious threat to the president from a man described by john bolton as, quote, a hand grenade. and huawei is bracing for more pressure from the united states as attorney general william barr backs a plan to prohibit federal funding. comes just days before the fcc votes on an order barring u.s. carriers from using subsidies to buy network equipment from huawei and zte. the companies deny claims beijing would exploit them for espionage. qantas is testing another new contender for the world's longest flight. a nonstop from london to sydney as part of its project sunrise initiative. the flight is over 10,000 miles and nearly 20 hours in duration, following the test of a slightly shorter nonstop from new york to

sydney last month. the dreamliner is expected to reach sydney around noon friday. 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. shery: jerome powell was more upbeat in his second day of testimony to congress, calling the u.s. a star performer and seeing you threats that could be real growth. what about the rest of the world? kathleen hays joins us now. how confident are fed officials that we don't need more rate cuts? >> i would say they are very confident. thinkot only because they there may be a rocky road to face for that trade deal, but it looks like the u.s. and china will get there before the end of the year. huge tariffs put on china by the united states.

jobs looks pretty good. jay powell went to congress for day two of his testimony and he sounded more upbeat than the day before. listen. >> the u.s. economy is the star economy these days. we are growing at 2% right in that range. otherhan any of the advanced economies are growing. there is no reason to think that can't continue. there is no reason to think that i could see that probability of a recession is at all elevated at this time. our forecast and our expectation is very much one of continued moderate growth, strong labor market, and inflation close to our 2% objective. >> it seems to be easy we are stronger than the rest of the world. look at germany. of aare not far out recession, that is for sure. china's recent weak economic data, look at japan. even some, the st. louis fed

bank president who has been pushing for rate cuts for month, says it looks like they have done enough for now, time to wait and see. spoke to theer you rbnz governor, who is also ready to wait and see if the fed is cutting rates. why? upmarkets are really geared with this recent data. the managers index, there's all people saying they are not looking good in new zealand. i asked, your cut, but your deputy says he's open to future cuts including february. cuts including february. adrian orr did seem to be on board. >> i don't know about february, but the door is open. why would you shut out optionality? also said, look, the data has been soft, economic data has

slowed. he's also saying we have stimulus in the pipeline. he is expect and the government to step up. they have the luxury to wait and see. monetary policy is in a nice position to observe the data. he is hoping that enough gets done for the economy to be on tack -- on track and growing again. if there is any move they have to make in the next two months, it's going to be in the rate cut. next, we will be joined thean shen to review mainland. ♪

shery: this is "daybreak asia." sophie: the candidate

representing taiwan's china from the opposition party in january's presidential race is adding to the call for free elections in hong kong amid protests. spoke to han. what did he tell you? >> the hong kong protests have been closely watched. perhaps nowhere to lay hold the significance that they do for taiwan. a large portion of the public ,ere, especially young people feeling obvious connection with the protesters in hong kong. the real significance for taiwan , what is happening is a vision of a possible future for taiwan if it was to come under control from the chinese government. hong kong is obviously governed by china under the one country, two systems bubble in which hong kong has autonomy under the umbrella of chinese sovereignty. that is the framework china

insists taiwan must respect if it is to one day unify with china. we spoke to one of the candidates running for president of taiwan. he is the candidate for the china-friendly opposition. despite his wish for closer ties with china and eventual unification, he did say the one country, two systems model is absolutely not right for taiwan. nobody except. nobody wants to be governed under that model. he also spoke about the situation in hong kong and echoing many of the concerns of the people in taiwan. he offered his solution for what the government in beijing and hong kong should do to end the protests. >> in terms of the hong kong issue, over the past few months, young people even lost their lives. hong kong competitiveness has decreased in hong kong has not been stable. it is bad for hong kong.

from the standpoint of chinese central government, they oppose hong kong independence, which is very clear. for the hong kong side, if they could carry out the real average, the whole hong kong people would come down. -- calm down. what is your path to the presidency now? >> the democratic progressive party has strongly criticized, slandered, and even smeared myself and my family. this has been the dirtiest election in hong kong's democratic election history. it if theyot need had an overwhelming lead at the pole.

.- poll continue taiwan's ambiguous unresolved status. with relations between the u.s. and china as they are and countries increasingly being pushed towards choosing aside, how long do you think taiwan can continue in this ambiguous status it currently has? >> we will continue to rely on the u.s. on international issues and national defense issues, as we share the common value and system of freedom and democracy. secondly, we will maintain the peaceful cross trade relationship. thirdly, we have to have a dialogue mechanism. it should not be like now when they cut off all contact between the two sides. >> as you heard, he spoke about his vision for exactly where taiwan should be.

his stance is really that taiwan should continue to exist in this itcalled status quo whereby is functionally independent, defective independent, but not recognized by most countries in the world or the united nations. eventuallyopes taiwan will reunify with china, but that runs in the face of widespread public sentiment here that wants to maintain this at least defective independence as long as possible -- de facto independence as long as possible . the relationship with the united states is key. he spoke about the united states offering a certain degree of military backstop, protection for taiwan in the face of possible invasions by china.

how is the election broadly shaping up? >> we are two months away from the election in taiwan. han is going up against the current president, who currently leads by quite a considerable margin in the polls. ast polls show she enjoys lead over him of between 9% and 15% in the polls. han does have some distance to make up. sees to what path he become president in january with only two months ago. he just replied to us he still feels confident. he is still smiling. polls also disparage the saying polls are not always accurate. we have seen that in the past in terms obviously of donald trump's election and the brexit referendum.

he did mention those, but he did he is fully confident he's going to become the president of taiwan in two months time and he does plan to push forward with his campaign. for joining us from our taipei bureau. we have an alert on the bloomberg now. onry kudlow commenting u.s.-china trade talks speaking in washington, d.c.. he says the u.s.-china negotiations are down to short strokes on that phase one deal, this on the back of news of sometially, we are seeing challenges in regards to farm purchases with china not agreeing on those monthly, quarterly, and annual targets the u.s. wants to see. we saw the reaction pretty sharp with chinese yuan erasing

earlier losses to strengthen while the u.s. futures market is also slightly higher. we also saw the japanese yen, which was stronger on the risk demand now risk-off starting to weaken against the u.s. dollar as well. swift reaction to china-u.s. trade negotiations headlines. all of this china but -- tension between china and the u.s. has affected the economy. we are counting down to data due in less than an hour. joining us from beijing is standard chartered china economist lan shen. we have seen data in china missed estimates, but it seems the property sector was holding up as one of the few bright spots. what are we expecting today?

expect the housing asce is likely to be further developers are providing more price cuts towards year-end. the pressure for smaller developers is likely to be even bigger due to the demand in their local markets. housing is likely to remain sluggish next year. we do expect housing price gains are likely to be well contained amid a cooling market. although we have strong performance of investment this year supported by the growth of construction expenditures, we think the deceleration of the deal starts and the sluggish replenishment is likely to drive down investment next year.

it plays a pivotal role in china's economy. we think the slowdown is likely to take a toll to china's economic growth next year. given the pressure on the chinese economy, are we expecting regulators to loosen restrictions on home purchases? anye do not expect extensive relaxation or state stimulus to china's housing .arket as well as expectations recognize the possibility that some local governments may relax their housing market policy in a ties -- a timely manner to maintain their local market stabilities. we arefinancial side, seeing the financial regulators remain decidedly discouraged

lending to developers. the financial conditions for developers are likely to remain tight. this could lead to further consolidation. >> focusing on measures by local government to reduce home prices , we just saw measures by shenzhen for example, value-added tax transactions of some homes. what measures might you anticipate from local governments? cities, we for those are likely to see marginal relaxation on household registration regulation to attract more. we think on the monetary policy side, if we get further lower interest rates, lpr rates, we

are lately to see mortgage rates lower in the coming year. you seewhere do construction expenditures going into 2020? >> construction expenditures supported investments this year, -- became that the sluggish. that this leading indicator tells us the construction expenditures may be likely to gradually slow down. this could be a drag on the overall investment in 2020. >> thank you so much. let's get you some lines regarding hong kong. the entire east rail line has been suspended as the city continues to see limited

public transport services as we enter a potentially fifth day of protests in hong kong. during the weekday. this is bloomberg. ♪

sophie: this is "daybreak asia." company, rh, shares

jump in extended trading after berkshire hathaway revealed it has a stake. su keenan has more. what do we see? >> these have been pouring in. our team has been going over them. many on wall street and main street as well. if you see how restoration hardware performed after hours, you get an idea how powerful the information in these 13f's is. they were up more than 7% by the end of the extended trading session. 13f shows that warren buffett's firm, berkshire hathaway, had taken a 6.5% stake in the furniture chain, a home furnishings company. another investor had already taken a more than

multi-million-dollar position. this is of interest. what we also know from these filings, they do not tell us what is exact the in thing funds now, but they tell us what their positions were historically over the past quarter. berkshire hathaway also cut apple, wells fargo, among other holdings. duchesne, which is noah family office. added some ipo's. we had a lot of other billionaires such as john ,aulson adding their positions one of the many additions to current holdings. these are very instructive to many in terms of what shares are favored by the so-called smart money. let's talk about the sayings that have been held by hedge funds. >> when you look at how they performed today, many of the

faangs, they performed rather well, but we know a couple weeks back and in the middle of the waster, the momentum abandoned. a lot of these shares went down significantly. very interesting that one of the widely followed hot hedge funds is adding to the positions across the board for the fangs -- faangs. d1 capital is the hot hedge fund i'm referring to. also were many that lightened up on positions. notice also where hedge funds made big bets. it has a lot to do with the ipo. george soros, a very well-known billionaire, added to the p stumbled outo that of the block. david tepper transforming his hedge fund into a family office. he made a small bet on boeing. it is notable because few of his

peers made such a bet. he took a sizable position in alibaba. tagger global geared up its alibaba state by 79%. goldman decreased its stake in uber, interesting because they helped underwrite the ipo. what is also interesting about goldman sachs's they increase epf thatition in an mirrors the s&p 500. you have a very big people on wall street indexing. that still is a popular way to go. shery: let's get a quick check of the latest business flash headlines. motorola is rebooting the iconic razor flip phone. a smart phone that gives the lenovo owned brand a selling point against apple. it looks like a modernized

version of the original. it is called -- it will cost $1499 and will be available for preorder in december, a verizon exclusive in the u.s.. unit isone's indian appealing for relief. facing a $4 billion demand to cover, vodafone took a one time charge that led to a net loss of $7 billion since september. the second largest phone operator has not seen any profit since it was formed in 2017. >> singapore's telecom with a net loss in the september costs., with exceptional it is the first time they have reported a quarterly loss which is worth 490 million u.s. dollars. the ceo says weak global good demand andeak global expects conditions to continue into 2020.

sophie: before we hand over to futuresna open," s&p jumping to a record at japanese shares now gaining ground after larry kudlow said the u.s. and china are down to short scope on a phase one deal. a fifthi rising for weekly gain. also shares also on the advance, up 0.5%. shery: we will have more on u.s.-china trade. bloomberg markets "the china open" is next. ♪

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shery: -- selena: welcome to bloomberg china open. top stories.he hong kong mirrors the end of a cryonic week. -- chaotic week. remains optimistic on hong kong ahead of the upcoming lifting. talks are set to stumble on her -- purchases of farm products. beijing is pushing back on washington'