haidi: a very good morning. we are live at the new economy discussingin beijing challenges facing the international economy in the year ahead. shery: we are under an hour away from the open in japan and south korea. welcome to "daybreak asia." haidi: our top stories this friday -- stocks sliding, there is concern over the impact of u.s. support for protests in hong kong.

charles schwab takes advantage firm and israge said to be moving on rival td ameritrade. apple overhaul software testing after finding glitches in its software. this is our second day at the new economy forum in beijing and we have plenty of great interviews ahead on our programs including mastercard's device .hairman also eurasia group's president as well. competition was really focused on trade tensions, the risks for the global economy, the u.s. and china dynamic. we will see more conversations about today as well, but also more focus on technology, ai, 4g, and transitioning into 5g. much: it was very optimistic or hopeful is maybe a better word, hoping to come to

some sort of heavy copper mines, but there was the idea that some of these issues are just going to remain issues forever, like henry kissinger saying the issue remain kong will problematic and other people saying the issue of sovereignty will be sensitive and will come up during trade negotiations. all of that has affected the sentiment for the markets. kicking offarkets trade. sophie: we are seeing green shoots in sydney, posse shares adding about .1%. bhp among the biggest mover so , but still set for the first decline in three, proving tough to crack, especially after the midweek stumble. the bank's board is to meet friday reportedly to discuss the australian regulators' claim. tokyo stocks could come under

pressure after a three-day incline for the benchmark. watchinglso be softbank on a bloomberg report. it is looking to reduce the size of its tender offer for wework. off in the asia session and we are seeing little change after a three-day drop, this after the s&p fell for a third session. treasury futures trust holding steady after cash yields rose overnight, prompting the longest stretch of flattening in the year, which cast out on 2019's bet for a steeper curve -- which cast doubt. checking in on aussie bonds, extending thursday's decline but -- but headed for a second weekly gain and offshore yuan

holding steady at a 703 level after reaching 705 on thursday. sophie was mentioning markets still digesting mixed signals from beijing and washington is talk into this crucial stage. china remaining cautiously optimistic on the deal and inviting u.s. officials to further talks. the situation complicated and that bill supporting protesters in hong kong. saying this time last year, we were talking about trade, conversations it dominated by trade. he hong kong aspect seems like something that it is impossible to find a compromise on between the u.s. and china and beijing has said they will retaliate.

will this be something that potentially undoes all of the progress made thus far? >> it's one of the issues that could undo things, but we are in this kind of tough end game and negotiations, and that's always the point where you are tackling the hardest issues. it's also always the point where things could fall apart because you're tackling the hardest issues. the low hanging fruit come early, you've got to get on that ladder and go up high, so that is really where we are. we are seeing these optimistic gestures from both sides. about leaders -- business leaders out here sending the message that a deal could be done. u.s. moveso seen the on huawei's special licenses, which is something the chinese have been waiting to see for months. finally, wilbur ross announcing this week that the first of those licenses are being issued and we are hearing microsoft now is getting one of those

licenses. that's a big deal. we just broke the microsoft lines and we were a little puzzled -- where they not supposed to be blacklisted on this entity list? this is supposed to be another pressure point against china. >> this is a really important move. if you go back to the summer and the meeting in osaka between xi jinping and donald trump, the agreement that came out of the meeting was that the chinese would buy more agricultural experts -- exports from the u.s. and in return, the u.s. would start issuing special licenses for nonsensitive technology and american companies want to be able to sell to huawei, and a great example is what happened with microsoft today. we are still waiting to hear what happens with google and the android software, but at this point today, microsoft is finally confirming that it has gotten a special license to sell software to huawei is an important confidence-building measure. we have seen some other moves on the agricultural side out of

china quietly, allowing exports of u.s. poultry to china last week, again starting to buy up more soybeans. we are not out of the woods yet on china. there are still some really tough issues to hash out. negotiators are still working hard at that. one of the big issues is how you rollback tariffs and when and we are not there yet. this could also fall apart, but there are plenty of areas to be optimistic. you look at these olive branch is extended on both sides at the same time nancy pelosi -- stated that all of ranch the same time nancy pelosi has sent that legislation to president trump to be signed. wherede is the one area really they are engaging. if we are in the foothills of this new cold war as henry kissinger said yesterday, the one area where they are engaging

is this trade negotiation and they need to keep that going. it is worth pointing out the hong kong bill is symbolic in a lot of ways from the u.s. side. it sets up a process by which the u.s. administration would review annually the status. it does not strip hong kong of its status and what we saw over the summer in august with the administration's designation of china as a currency manipulator was that there was a lot of heat going into that happening and when it actually happens, things calm down quickly. right, do they really want to use that power now that they have it. when you look at the last years of negotiation, who is winning? the blacklisting of huawei seems to be turning out like another cte case and when it comes to china's demands, i don't see them backing down. quick let's be clear -- huawei is a long way from being another

cte case. these special licenses being issued are just very narrow exceptions for nonsensitive technologies. it will remain on their blacklist for some time and as a sign of how sensitive that is, we are already seeing senators in the u.s. send letters to president trump saying we do not want you to issue these special licenses, so it is a tough political issue. i think we are seeing both sides wanting to hit the pause button. we are seeing them try to go into next year, which is an election year, obviously, with things on slightly calm her footing. haidi: great to have you here in beijing. the news with jessica summers in new york. jessica: the u.k. election

urmpaign has seen labo publishing the most radical manifesto from a major party in decades. promises to raise taxes by about 10% year. the general election is on december 12. billionaires,ers, and the establishment. we represented politics as usual, bought off,d be that nothing was going to change, then they would not attack us so ferociously. why bother? but they know we mean what we say. they know we will deliver our plans, which is why they want to stop us. jessica: israeli prime minister benjamin netanyahu is to face trial for corruption. he's been charged with bribery,

fraud, and breach of trust in a move that could hold his career. netanyahu is the first of the israeli leaders to be indicted on the justice ministry painted a picture of a politician who abused his position and sacrificed the integrity of his office. netanyahu says the investigation pursueted and did not the truth. the two top political jobs in sri lanka are held by two brothers with close ties to .hina the single's buddhist party has been calling for a snap election with the current vote not scheduled until at least next march. the president has already announced tax cuts and help for farmers. continuing to choke on pollution from bushfires burning across eastern australia. conditions are so bad it is almost impossible to see the

city's iconic bridge and concert hall. the world fire service as the smoke is mainly coming from north of wales. i'm jessica summers. this is bloomberg. thank you. still ahead, we will be speaking to the pimco vice-chairman. shery: up next, we will discuss the outlook for china. live from beijing, this is bloomberg. ♪

>> we should pursue common,

comprehensive, cooperative, and sustainable security and reject zero-sum game and cold war mentality. >> there's a period in which there is a piece because nobody wants to fight the country that and there is a new world order. >> only cooperation is the answer. worry it will be irreversible. >> it will change forever. the confidence of supply from a single source for anybody in the world has induced. >> we continue to serve our customers in china with their plants here. >> i think there's a good chance we will see some progress on the trade discussions. i've been fortunate to speak with policymakers on both sides, and i'm encouraged. some major names at the new economy forum with opinions on the trade talk.

let's bring in scott kennedy center for strategic and international studies' senior advisor. this dependence of china on u.s. technology. , it iss the blacklisting pushing back on that. >> the entities list and the piece by piecemeal approach of letting out technology, i think it is a mistake. we have a very interdependent relationship across the board, when talking trade, investment finances and tech, and that's good for american business and also good for american national security. the steps we taken recently by putting huawei on the entities list i think has made the chinese feel they cannot depend on american suppliers, so they have doubled down and tripled

down on indigenous innovations. of course, it is something they must depend on, certain types of chips, certain types of software why the, and that is things microsoft supplies is critical to them and could endanger american national security. i think that's the sort of rational reason why they were given the license. op-ed aboutrote an this destructive decoupling between the u.s. and china. is it possible to undo that? sayingough we keep globalization, we are seeing this bifurcation. how disruptive is it to go their separate ways, and is it unavoidable? >> oh, my god, it is so radical an idea to decouple. the crazy idea of hardline used antidumping and countervailing duties, and then it became let's put on some sanctions, and now we are talking about let's rip these

two economies apart. that's based on a very simple mathematical formula -- greater engagement equals less security, and that is actually not true. you can have greater engagement and protect your national security if you have the right type of mechanisms in place to manage the risks. some places some things you cannot sell and provide china and that is why we have provided the idea of minutes interdependence. ripping the two economies apart, putting a big line down the middle of the pacific, that's nuts. nuts, but can it even be done? it's not like the government controls this process. >> that's exec we write. the discussion over the last six months about decoupling, we've seen very little decoupling if you look at the level of trade, finance, etc. even in tech, mostly modifications of supply chains, but if you try to fully

disengage and pull apart, you do not know exactly what this is going to do. >> you are based in d.c., right? surprised at the level of threat people in washington feel about the growth of china? >> i think the u.s. generally is worried about localization and the threat to our economy and president trump's political base is rooted in that anxiety. and you just have a very successful china and there has been a whole series of reports about how china's -- china is successful across the board in all these different technologies that is looking at the u.s. in their rearview mirror. so it looks like an existential threat to the u.s. therefore people are in freak out mode, so we left before we look in some policies, so we are struggling and eventually we will figure out what we are

going to do in the long term. i think that is where we are right now. haidi: does it change if we have a changing government? it feels like a bipartisan -- i don't want to say paranoia, but insecurity may be. >> certainly there are ways in forh china could use ai quantum or blockchain or some of these other technologies that could be dangerous for the united states and western alliances and others. you think about the way the social credit system could be applied or how technology might be used abroad, and that is really concerning. is it an immediate existential threat? i don't think so, but it is a challenge and we have to figure out how to manage it. there are some types of that might need to

be expanded, some types of investment restrictions, but we do not need to go from full openness to foreclosure and autarky. that is really going too far. is trying toates figure out what that correct balance should be. what happens when tribes are fire signs the hong kong and human rights and democracy act? >> i think not very much. certainly the chinese are upset about this, but when you have all but one member of congress voting for this, the president is not in a position to veto it. he might after 10 days just let it go. i think the chinese will be upset, but i think everyone needs to remember that the hong kong issue is a mystic chinese problem, about one country, two systems, not about the united eights or u.k. and the resolution of hong kong is not going to be debated between washington and beijing or london. it's going to be debated in hong kong. also need to resolve

it in a way that allows hong kong to get this resolved. haidi: the new economy forum being organized by bloomberg group, a division of bloomberg lp -- organized by bloomberg media group, a division of bloomberg lp, the parent company of bloomberg news. much more to come. ♪

ness easing on the ensuing turmoil in the retail brokerage business by a major rival. su keenan has the story. what's the latest?

that they could announce as early as the end of this week, even after the bell, they have plans to buy td ameritrade for $26 billion. that word rocked the stocks. as you can see, td ameritrade and schwab both rallying. a look at the five-day chart. you can see the announcement was a surprise although consolidation in the industry was not. really changed the retail cutting fees, by forcing others to follow suit. just weeks later, as we mentioned, seizing on the turmoil and reportedly ready to smaller rivals, but one of its bigger rivals, td ameritrade. this would make it a potential

$5 trillion titan. that would certainly get a lot of attention from washington. haidi: particularly when it comes to antitrust scrutiny. there are a lot of concerns there could be hurdles schwab would have to jump over in purchasing td ameritrade, but we spoke to schwab just a couple of weeks ago, and he hinted that he was ready to do a deal. let's listen. >> i don't know if we will be successful in that pursuit, but i think in the industry, you're going to see more consolidation, more firms adding together. just have to have that scale and volume. we are prepared to do it, but if not, we are perfectly happy to go it alone. he says scale and volume. that's what i a lot of analysts say is the way these online brokerage firms have to go.

it will certainly face and scrutiny because ameritrade also again would be in a situation where they would look not only at the lower fees but the fact that there are a lot of investment advisers would also benefit here. again, it is a very exciting deal. a lot of investors are looking at it. you a check ont the latest business flash headlines. drugmaker planting its hong .ong listing the hong kong listing comes less than a year after completing the selling. the stock has risen more than 600% since january. shery: reports from sine say westpac boards will meet to discuss the company's frequent breaching of financing laws.

west bank is accused of more than 23 million breaches of banking laws. coming up, we will be discussing reworking the wework package. we will talk about the company next. this is bloomberg. ♪ whether you're out here on lte.

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haidi: breaking news just crossing the bloomberg -- the latest reading when it comes to objects -- inflation pressure or lack thereof, national cpi for the month of october coming and bang on expectations, .4%. .2%,eadline number, slightly under expectations of .3%. we actually have a slight beat on energy prices, but we were expecting a pickup given that

tokyo cpi data, which is a leading indicator of nationwide price pressure. having said that, where perhaps hike ashat sales tax well as policies on free education for young japanese children. of course, bloomberg economics saying the broader picture is the slow and lower inflation and really nowhere towards that 2% inflation target. do you think? sophie: let's look at how japanese markets are shaping up. those inflation numbers not going anywhere quickly. the bloomberg economics does say that reflation does remain on track for the japanese economy. checking in on nikkei futures, pointing higher in singapore, down slightly in singapore, but we will likely see lackluster moves, which could put japanese stocks on course for the first weekly drop in six, while the

yen expected to stay range bound on trade and hung congress. let's turn to the session and sydney. rc has halting a two-day decline but on course for the first weekly drop in three and this morning we have resource players leading gains while financials remain under pressure with the .ocus on west bank let's get a quick check on movers in sydney. laggards this the morning, i want to highlight main pharma falling as much as 14%. that would be the biggest drop since may, falling for a fifth straight day after posting a 16% yearly decline in group revenue through october as it faces competition. haidi: some of those early movers. let's get you to first word news in new york with jessica summers.

jessica: markets continue to digest mixed signals from aging and washington as trade talks enter a crucial stage. china remains cautiously optimistic on a deal and has invited officials to further talks this month. matters are complicated, though, by washington's attitude to the protest in hong kong. terms are fire is expected to sign a bill supporting the democracy drive, and that may spark an angry reaction from beijing. global banks that have been advising on the saudi aramco ipo are being sidelined after the attracted only lukewarm interest. sources also tell us the international banks will not have access to the ipo order books without aramco's permission. minister prime narendra modi is putting the flagging economy front and

center with the country's biggest privatization drive in more than a decade. tois also renewing attempts reform the crisis in the shadow banking sector. he wants to transform the economy into a $5 trillion operation by 2025. key ratesian left its unchanged while pumping more cash into the system to stimulate southeast asia's largest economy. bank indonesia cap the seven-day repurchase rate at 5% following for cuts this year. it also cut the reserve ratio by 50 basis points, the first such move since june. the governor says there's still room for more policy easing. president obama is warning that advances in technology are creating a .plintered world speaking at a salesforce.com

conference in san francisco, he said new technology is allowing companies and citizens do more, but he says it is also fueling more extreme inequality and contributing to the growth of public anger and anxiety. news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 100 20 countries. i'm jessica summers. this is bloomberg. news ate have breaking the moment. we are hearing judy shelton has an article regarding .he fed judy shelton is president trump's most recent pic for the federal reserve board, and she shared her views on monetary policy and the fed with ubs group after speaking at an event on october 18 and washington

saying she does not see any reference to independence in the legislation that has defined the role of the federal reserve of the united states, so shelton really casting doubt on the central bank independence when she spoke with a ubs executive and october on central bank policy. highly unusual for someone in that position to say anything, let alone question the independence of the body. let's get the latest on our top story, this ongoing wework saga, softbank looking to reduce the size of their investment. shery: this was very controversial from the get-go. what do we know? >> it seems like terrible objects, on the same day they

laid off 2000 people, to have hanging over the discussions the notion there would be this tender offer where the cofounder who is responsible for the situation where we are now, might get 900 $7 million as part of that offer, so privately, softbank executives have been talking about is there a way to hold that tender offer where they do not have to pay that full amount to adam neumann? haidi: what is the structure of the current agreement that is in legallynd is it a huge legalout tussle to be able to renege on it? >> they could do it in a way that is not exactly reneging on it because the tender offer, which was about $3 billion, set aside to buy shares of we work

-- wework at $19 billion and change requires that the people holding those shares sell them to softbank at that price, so behind the scenes, they could make some sort of arrangement neumann does not ask to sell his shares. there are some things they could do legally that would perhaps make this possible, and that is what they are exploring right now, and they are trying to be as generous as possible with wework employees, giving many up to four months severance, even wework just started at earlier this year, so i think they are very sensitive to wanting to appease rank-and-file employees, and it's hard to do that on one hand and give the already well compensated ceo

another $970 million on top of that. sarah mcbride, thank you. when apple released the iphone 11 and september, it also launched its latest operating system, and it did not go exactly to plan, that launch. apple is making some big changes in response. our technology reporter mark gurman has the story. we join him in los angeles. anecdotally, you always see people complaining, don't do the latest software update because it does not work as well. is it just people complaining, or were there actual glitches that work quite problematic for apple? mark: the signal-to-noise ratio is always important to discuss in matters like this, but it's a real problem and apple engineers have known for months that ios 13, or at least the initial version, was not up to par quality-wise.

what does this overhaul say about the importance of those launches? : ios is really what makes their devices work and tick. you could have the best hardware in the world, but if the software is not optimized to take advantage of it, it really means nothing, so these devices without thell software, so they have to get it as buttery smooth as possible, high-performing along with features in order to make the best overall performance for consumers and prevent them from defecting to android. particularly with this all important shift to services, right? thank you for joining us with that exclusive on apple. up next, the pimco vice-chairman is with us at the bloomberg new economy forum. we are live in beijing.

♪ this is bloomberg.

with the u.s. and china seemingly edging toward an initial trade deal, investors are asking what kind of impact such an agreement could have on their respective economies. haidi: joining us now to discuss all of that is pimco's vice-chairman. great to have you joining us. are you more optimistic that policymakers are getting close to finding solutions to difficult problems like the trade war? >> the trade talks continue. i'm not in the room. i think there are a number of people who are in the room, and i think we are confident both

countries want to find a resolution -- certainly a phase one resolution, but as we know, the trade talks are sort of a symbol and symptom of the need to resolve broader business and diplomatic relations between these two important and formidable countries. shery: what should investors do in this environment where there is a lot of movement in terms of where we are in the negotiations ? how cautiously optimistic we are, at any given time, things can change with a tweet, with a comment, with a remark. respond tos volatility, as you know. what u.s. investors are looking at is volatility in terms of confidence, and as long as the trade talks continue unresolved, what they know is the chief executives of u.s. companies are going to be reluctant to make definitive capital expenditure decisions, and that is

postponing investment, and that is something which could have an impact on earnings going forward . the u.s. consumer, though, continues to be very much in a spend, spend, spend mode. bank onf we continue to trade headlines, what will we see in terms of the treasury market? a selloff on progress and again buying just because of these pessimistic headlines? is this a dynamic we will continue to see? a period of volatility and one of the things we are focusing on is the economy is slowing down. we don't really see a recession in the next 12 months except anything that remotely represents any type of air pocket or disruption is going to cause a short-term challenge to confidence. for example, the big black swan

of 2019 -- the only black swan of 2019, really, has been what has happened in hong kong. no one really predicted that. really pretty good that even though it was something that was clearly bubbling under the surface for a wild. when you look at something like hong kong and a lack of options on the table for both sides, does that make you want to sidestep that market? quick scary interesting. hong kong is a very stable market. if you look at the capital markets over this whole period of volatility on the violence, remember the hong kong currency is pegged to the dollar. the hong kong stock exchange is probably one of the most professionally transparent and regulated in the world. it's very much in line with the best of the new york stock exchange and the london stock exchange. investors are very comfortable with hong kong as a capital market. what has happened in hong kong

is less in terms of capital market and more at the consumer level. if you talk to the consumer companies here at the conference, they see a marked decline in consumption among luxury products and other types of usage. even yesterday, one of the credit card companies was telling me the use of their credit card in hong kong has declined materially because of the -- what's taking place on the streets. shery: you are not hearing concern about the money markets in hong kong? theaps some people saying hong kong dollar being pressured away from that currency peg. >> one of the things we are all excited about is remember in 2020, china is going to open up their financial services market to international ownership and i'm actually hoping we can use this to rebalance the discussions on the u.s.-china relationship because it has been

very focused on technology, but when you actually look at financial services, the chinese have been very open-minded about bringing financial institutions -- international financial institutions into their market. it is a $43 trillion market, and they want international expertise and experience in that market. 20/20 is important. pimco is very excited about the chinese market. it is a $12 trillion bond market. it is actually a bigger bond market than japan. will you be adding positions in china? >> we are talking to be csrc about our position there. position right now in shanghai, but we have an ongoing discussion, and we, of course, have prioritized china through our emerging markets vehicles, but we are going to take it a step further in 2020. haidi: what will it depend on,

taking it a step further? >> i think we are confident that the chinese government is very open about how it involves international players in this market. remember china has always strategically invited foreigners .n they see american institutions as -- the chinese banking sector hasn't always been an easy or attractive foreigners to wander into. >> i'm familiar with that, but i'm also very focused on 2020, and all the indications are that this transition is going to take place and to a certain extent, it needs to take place because remember, china wants to establish further its government bonds and broaden its credit profile among international investors. haidi: the trade tensions, has

that negatively impacted investor interest in chinese assets at all? >> a lot of people access china through emerging market indices. i would say people still see that aspect of it as an attractive bed. shery: we've been talking about the black swan essentially being all these trade tensions. the fednow heard from .ic from president trump

>> the fed is an independent group. it is an impressive group. i worked a lot into thousand eight when i was managing overseeing the api restructuring. i did a lot of work with the new york fed then, and i saw how well coordinated they were between the pboc, the bank of england, bank of japan, and european central bank. i think jerome powell has played this game with a very straight back, and i think what is interesting is the policy is in a good place, but i think what is even more important is he and the president both prioritized two things -- they both prioritized the economy, and they both prioritized the labor market, and i think there is an enormous amount of respect and the need to keep the institution independent, and it remains independent. shery: thank you so much for your time this morning i joining us here in beijing. the new economic forum is organized by bloomberg media group, a division of bloomberg lp, the parent company of

bloomberg news. haidi: this is bloomberg. ♪

>> it's a very complex, multilayered situation. the business environment is still ok and the impact on our business has been ok. not seen an have impact. i think people are taking kind of a wait-and-see attitude and i think the central expectation is somehow this will get resolved. >> there's a downward pressure on economic activity. i think we can expect to see more impact here. >> to be honest, so far we have not seen any outflows or major movements. >> i don't see any change in the behavior of clients that are

significant financial players in hong kong. some of our guests at the new economy forum staying optimistic. haidi: really interesting that john from pimco just said saying that capital markets are still functional even if the city is getting more dysfunctional by the day. that turmoil is expected to continue, hong kong headed for district elections on monday. the political system will be almost a key referendum on these protests. here's why they will matter more than ever. >> at stake are 18 district councils across hong kong with 452 constituency members. the candidates are mainly split between those from pro-establishment parties, which basically means pro china, and those from pro-democracy ones. there's also a lot of

independents, for candidates who prefer to avoid the party tag. at the moment, the electoral map of hong kong looks heavily pro establishment, but embolden by months of antigovernment protests, the pro-democracy parties have been campaigning harder than ever, building a record number of candidates and working together to combine resources. and not just locals symbolic influence that is at stake as whichever side wins the most strict counselors can also ensure they get around 10% of the seats on an exclusive committee who selects the hong kong chief executive. candidates running for chief executive must get backing from at least half that committee before being appointed, so while it is not an automatic game changer, a small slice would still be a big deal for pro-democracy parties who have long complained the committee is packed with pro china loyalist. voter turnout an interest for these elections is not great, but it is growing with an

increasing number of people registered to vote and the big student population that has probably never been more politicized, this time, district council elections will matter more than ever. >> markets open in tokyo and seoul at the top of the hour. sophie: the regional benchmark could avoid a second straight week of declines. the minis little changed after a drop to the downside. checking in quickly on the end, we see little reaction to japan's inflation data for october, and offshore yuan study in the 703 zone after reaching 705 thursday ended conflicting trade reports. a snooze first with global volatility sitting there all-time lows as traders attempt to assess where the next bout of

turbulence may come from. at there coming up ahead open in tokyo and seoul. this is bloomberg. ♪ when it comes to using data, everyone is different.

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>> very good morning. i am haidi stroud-watts. we are at the new economy forum in beijing. global leaders in business and finance are tackling the challenges facing the international economy in the year ahead. shery: i am shery ahn. welcome to "daybreak asia." haidi: out of stories this friday, stocks slide on slipping trade signals. china remains optimistic that there is concern over u.s. support for protests in hong kong.

the city votes this weekend in district elections that will be a key referendum on months of unrest. shery: asia's rapid population growth -- millions of hungry mouths.the challenges facing agriculture. let's get straight to the action with sophie in hong kong. the japanese markets back online. >> you have the nikkei and the topix little changed after a three-day decline. little reaction in the yen to cpi which picked up a touch. lower energy prices at to that drag on price growth. it remains to be seen if kuroda will take the signal that risks are remounting to price momentum. check in on the kospi, which is holding steady after a four-day decline while the asx 200 also resuming gains, up .5%. we are seeing tv shares under pressure and s&p -- moving to

the way .1%, extending declines after we saw the benchmark slide for a third straight down thursday. let's switch out the board to check in on treasuries this morning, looking fairly steady after drifting lower thursday, ending a flattening streak with a 10 year yield around 1.77. the offshore yuan holding around 703 as trade in hong kong risk remains. we were telling you about the distinction he sees happening in capital markets versus the situation for the consumer space. a cosmetics player to close 30 stores over the coming year. it will only consider renewing its lease if the rate is cut 50%. haidi. haidi: sophie kamaruddin in hong kong. let's get to new york. jessica summers has the first word news. jessica: president trump has signed a four-week spending bill

that puts off a possible government shutdown until december 20. the senate cleared the measure in a 74-20 vote after. the stopgap became necessary because congress failed to complete action on the 12 annual spending bills needed to keep agencies operating by the october 1 start of the fiscal year. the u.k. election campaign has seen labor publishing their most radical manifesto from a major party in decades. promising to raise tax revenues , free university in vestednd care interests who are the enemies of ordinary people." bankers,f the billionaires, and the establishment thought we represented politics as usual, then we could be bought off. nothing would change. they would not attack us so

ferociously. why bother? what we say. they know we will deliver our plans. stop is why they want to us being elected. jessica: benjamin netanyahu is to face trial for corruption. he has been charged with bribery , fraud, and breach of trust in a move that could halt his career. netanyahu is the first sitting israeli leader to be indicted. the justice ministry painted a picture of a politician who abused his position and sacrifice to the integrity of his office. netanyahu says the investigation is "tainted and did not pursue the truth." 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. take a look at what our

mliv team are watching today. mark cranfield joins us from singapore. the tokyo and japan cpi numbers. even with the tax hike last month, that is going -- that did not boost inflation that much. mark: indeed. it has been low for a very long time. you keep on hearing the bank of japan governor kuroda saying it has been very difficult to get it to move up towards the 2% target. the numbers today reinforce that. the bigger story in japan is where they go now on fiscal stimulus and whether the bank of japan can steepen the curve. they are parallel issues. we have already seems prime minister abe has given where he wants to see a supplementary budget that will come in to help to stimulate the economy and that could come into place in the first half of next year, so that will certainly give a boost to japanese markets. it may even start to see a little bit of an increase in inflation once that starts to

come in. abouts also talk japan possibly issuing fifty-year japanese bonds. they have not gone that far so far, but other countries in the world have done. we have seen switzerland issue that and the u.k. has long bonds out across the curve. we will be looking at japan to see whether or not they are willing to go as far as 50 years. if they do, what kind of effects would it have on the yield curve? would it give insurance companies even more room to invest for the future? these are big questions for japan. cpi is in the background in relation to those. looking at the performance of hong kong today, we were just speaking to johnson pimco.from he said the detrimental hong kong from these protests and unrest has been on the consumer, the retail, the macro level.

capital markets very much intact. you look at the alibaba secondary listing and a number of listings recently. do we expect that really to evennue to say a bit more if we do see violence from the streets? mark: certainly, investors so far have been quite good at compartmentalizing the two, business on one side and protest on the other. is beingy life disrupted. companies are still working, profits are still being made, and life, to some extent, continues to go on, as we see in other parts of the world. it does not mean the whole economy comes to a complete standstill. the longer it persists, you can see the gdp data for hong kong is worryingly wea we are havingk negative. gdp data -- weak. we are having negative gdp data.

hong kong needs to get out of that. so yes, it may not be affecting it, but the longer it goes on, the longer they get more concerned and they might start looking at other parts of asia for their business. great to have you. mark cranfield, our mliv strategist out of singapore. china's chief trade negotiator said he is cautiously optimistic that an initial deal with the u.s. will be signed. response mayg's prove an issue. .t is michael great to see you, ambassador. we are so focused on this phase i one trade deal. will it happen? will it not happen? when will it happen? will this lead to a broader deal? it is largely a

purchase deal. the conversation we are having in the form has been about the future of the u.s.-china relationship more broadly and how the two countries accommodate each other when they are following very different sets of rules. those are the harder issues to deal with. they take deep diplomacy and a long-term commitment to following through on that. we have to see how we get through the phase one deal before we get there. be havingm to problems. low hanging fruit. is this normal? is this the way things go before you get there? michael: trade negotiations are always messy. it should not be surprising there's some bumps in the road. this is the easy part. they need oil. should be easy. the harder piece is getting intellectual property rights, protection, the role of state owned enterprises and subsidies.

we did a lot of work on that. the obama administration. i am hopeful this administration will pick up on that and move forward. haidi: our previous gas, scott kennedy, talking about the value of a self-destructive decoupling between the u.s. and china. is it possible to have a bifurcated relationship when it comes to things like industrial policy and tech yet have a healthy mutually beneficial resumption of trade flow? michael: the challenge is that if we go different directions on industrial policy, -- they affect each other. if china continues down the path it is on, it could surprise the opposition in the united states, europe, and elsewhere, given the effects on international trade. how do we move towards some common set of rules, whether they are in the wto or not? the transpacific partnership continues to exist among the

other 11 countries. it is a question whether we get that kind of dialogue with china about what the new rules of the road for trade are going forward. shery: microsoft has been given the license to export from huawei. will washington be ok with that? amean, there seems to be broad consensus in d.c. at the moment that this is really hard line against beijing. michael: on huawei in particular, i do not have any great knowledge to understand what the particular security threat is or is not. i think the key thing is that people are looking to washington for consistency in approach. they want a clear sense of what they can and cannot do and then they will adjust to that. length whenoke at we attended the many rounds of tpp negotiations. the united states is no longer part of that. moreiations were a bit dynamic. if you can call seven

years faster. relatively fast. [laughter] are we moving back towards multilateral agreements being kind of your bread and butter in the world of trade or do you look at things -- with india pulling out, the more powerful reasons are going to be the bilateral ones? michael: there's been a lot of progress even as the u.s. has pulled out of tpp. the other 11 move forward. the e.u. has had a very robust trade with this region as well as latin america. the pacific alliance in the western hemisphere has continued to deepen their partnership. africa has multilateral agreement being implemented. i think having multi-parties around the table is still a viable way of going, even if india does not sign it. we have more than a dozen parties that can move forward. about talking

multilateral organizations, the wto under a lot of pressure from the trump administration. when china joined, they promised they would open the payments market by 2006 or so. mastercard has been one of those that has not been able to break into china because they have not kept to their commitment. what do you want to see from china as we continue to see these trade negotiations as a business? michael: we are continuing to have good dialogue with the chinese regulator and chinese officials. as they move towards opening the market further and financial services, we are hoping we will be able to do business in a meaningful way. haidi: in terms of the market, commercially, it is slightly irrelevant. by the time you get to 2020, financial services are opening up. there is no market that external players can come in and meaningfully get. it is such a saturated market. michael: it is a very dynamic sector.

person-to-person, merchant to merchant, business-to-business. there will always be new developments and we will play a role. shery: how dynamic is asia? there are so many emerging economies, yet at the same time, growing economies, changing demographics, the economic status of people, how do you bridge the gap and what is mastercard doing in order to not leave people behind? michael: implicit growth is essential to our agenda. we are focused on bringing 500 million more individuals into the financial system. as we achieve that goal, we are next on the next several. we have programs in every country to focus on bringing women, small businesses into the systems to get more access to credit and financial services. we view it as a key part and payments can be the gateway into financial services for people to achieve greater financial security or for them to get access to credit and grow and create jobs. it is a key part of what we do, core to our business strategy.

we feel it is a key part of what we do and we do well by doing good. most: what has been the surprising, useful, but also dominant part of this conversation you have been having? michael: a lot of interesting dialogue about this long-term trajectory of the u.s.-china relationship. ofone has a clearer sense what the right answers are, but it is squarely on the table. the most important question, not just these two countries, but the global economy. how will these two countries deal with each other? under what set of rules? can we avoid having self-destructive trade wars over the long run to get ourselves on a better track? .aidi: the greatest question ambassador, always a pleasure having you. the former u.s. trade representative, michael froman, joining us here.

organized byorm is bloomberg lp. shery: coming up, continuing to digest conflicting signals. -- joins us on set. this is bloomberg. ♪

>> very short wasted. shery: i am -- haidi: i am haidi stroud-watts. shery: u.s.-china relations are the worst they have been in for

years. here is the chair at ucsb and the former deputy assistant deputy of state in the clinton administration. thank you for joining us this very cool morning here. >> nice to be here. shery: let me get started. decade ago.shed a you spoke about the insecurities of the chinese leadership which is perhaps the biggest threat. what are the securities of this administration? xi consolidated power in a way very different from his predecessors. mao-like leadership. and one of the first things he has to worry about is keeping

the other leaders satisfied because right now, he is using the antlike and a climate of a real power-sharing system. the history of communist regimes is always that there is a risk of splits in the leadership. the second thing he has to worry about is keeping the public satisfied. right now, we have core prices. inflation is always the greatest risk. in 1989, -- a very important part of that context was inflation. he really has to keep inflation under control as well as maintaining confidence through economic growth. war, the facede aspect put pressure on him as well. to be able to get favorable

as is the case of president trump. susan: president trump is more directly impacted because of the upcoming election. president xi does not have an election to worry about. right? not lookoes have to like this is another form of unequal treaties. he needs to depict it as something of a win for china as well as the united states. shery: something that caught my attention in your remarks, does china really have to care that much about the public? susan: yes. i mean, they do. maybe they do not really need to, but the leaders always do. they don't have to run for election, but they do want -- they are always worried about some mass upheaval, and they have the memory of -- in their

mind and the fall of the soviet union. the soviet union did not fall. the communist party does not fall as a result of some bottom-up revolution. it was a split in the leadership. of whathe possibility is happening in hong kong, maken, how does that beijing react and how long will they allow this to continue? susan: that is a question i have been asking chinese colleagues here when i talk to them. i have been asking, hong kong, does it help xi jinping politically or hurt him politically, domestically? the impression i have now is are even liberals nationalists now, and there is very little sympathy for the demonstrators in hong kong, especially as violence has grown, so in a way, it has

helped unify support around xi jinping. it is not a problem for him that way. does this difficult very strong nationalism of chinese people, how difficult does it make it for an actual trade deal to happen? susan: i really do not think it you know,rd because in any negotiation, you have to be able to say that this is a good thing for both sides. and i am sure that is what will happen. you know, i guess the question is, is the u.s. side rational, realistic about this? shery: what about how washington feels about this? to they sort of overreacting the perceived china threat? isan: i believe china overreaching and america is overreacting. haidi: that puts it into context. susan: i think it creates a

really dangerous dynamic. haidi: the big question of whether it is inevitable that we continue to see the bunting of heads -- butting of heads? susan: people say that. they say it is inevitable. we heard henry kissinger say yesterday we were in the cold war.of a new this is only the very beginning. and i hope that the united states will really think through a sensible strategy for competing but competing in a way that does not lead to us blowing one another up. right now, there's not a lot of that kind of clear thinking in the united states. but i am hopeful that in a post trump administration, there will be the opportunity to do that. haidi: you are up to meet president xi after this what do you want to bring up with him? susan: i have been thinking

about that. i do not know if i will have the opportunity to ask a question. haidi: what would you ask him? him somewould ask questions more about the domestic political situation. you know, because i would like to ask him what is going to happen in 2022? the people turnover power in china, which was achieved -- every 10 years. it is really a stabilizing factor in communist party rule in china. what will happen in 2022? xi remain while all the other cohort in the standing committee have to step down? it does not seem to me that that is going to be something that is necessarily acceptable to the other leaders. haidi: thank you so much for

joining us. assistantuty secretary of state, susan shirk. this is bloomberg. ♪

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own home. order now to get big savings - but only for a limited time. just go to leesa.com today. you need this bed. .hery: welcome back pmi foretting the manufacturing for the month of november coming in at 48.6, which is a slight improvement from the previous month. but of course, this again, manufacturing pmi, seven months of contraction below the 50 rush holt. exports under pressure that fell over 5% in the month of october year on year. the manufacturing pmi is in contraction territory. take a look at that.

it's bounceback is in expansion territory, 50.4. this after we had the services number in contraction. it fell in october for the first time since a data has been released in 2016. is back in expansion territory. 49 .9.posite number, -- 49.9. haidi: investors are waiting for more details. sophie kamaruddin with the markets. the yen not budging with the numbers coming out. yen headed in for a second weekly gain. seeing modestare rises for asian stocks but not enough to keep the regional benchmark from clocking a weekly

decline. bonds are under pressure to the downside. in the market looking for some bullish signals as things are not going to get worse. aussie bonds shrugging off pmi readings. the november pmi fell into contractionary territory despite policy easing and tax cuts pay with a rebound in employment growth, goldman expects the rba will not pull the trigger. nextore rate cut in the six months from australia. treasuries are flat today after drifting lower thursday as the curve has been dampened by the flattening trend. jp morgan assets notes it feels like we are treading water with the current limbo on trade leaving the tenure stuck in the middle of the range. 19 basis points to the end of 2018. a quick check on stock movers had i want to highlight jose, which is under pressure. this after it announced second-quarter net profit that missed analyst estimates.

panasonic losing grounds. low profit businesses and announced plans to cut costs. westpac extending declines, erasing its gains. the board is to meet this friday to discuss allegations of money laundering and financing that have been made against westpac. haidi. sophie kamaruddin in hong kong. first word news now with jessica summers. jessica: we former governor of the people's bank of china says policymakers still -- providing fiscal work. he was speaking at the new economy forum in beijing amid continuing debate about how the government will handle china's widening slowdown. underlying the central banks concern. we can still try to avoid that very soon into the negative interest rate area.

if we could successfully manage the macroeconomic control in this regard, then we do not need to consider that much unconventional policies. >> the top political jobs in sri lanka are now being held by brothers. the new president has appointed his sibling, the former president, as prime minister. their party has been calling for a snap election. the current vote not scheduled until at least next march. the president has announced tax cuts and health for farmers. and much of new south wales continue to choke on pollution from bush fires burning across eastern and southern australia. conditions are so bad it is almost impossible to see the city's iconic bridge and concert hall. the wildfire service says the

smoke is mainly coming from fires in the north of new south wales with pollution levels 10 times higher than normal. indian prime minister narendra modi is putting the flagging economy front and center, but the country's biggest privatization drive in more than a decade. he is renewing attempts to -- crisis of the shadow banking sector. india is mired by a deepening slowdown and waning consumption and modi wants to transform the economy into a $5 trillion operation by 2025. obama's warning that advances in technology are creating a splintered world, stoking disparities between rich and poor nations and the people within them. speaking at a salesforce.com conference in san francisco, he said new technology is allowing companies and citizens to do more but is also fueling more and contributing to public anger and anxiety.

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: following another day at capitol hill, kevin mccarthy called the attempts to a ph president trump a political hit job. let's bring in sarah while bank. hearings.k of public very dramatic testimony in congress. what have we learned? know, the hearings have wrapped up in the house impeachment committee. now looking forward to what is going to happen next. what will happen next is that lawmakers are going to have to make a decision. democratic lawmakers, on how they proceed. they have gotten a lot of

secondhand witnesses but they have not been able to get some of the first 10 people they wanted. the white house said they will not provide them. the state department said they will not provide them. democrats have a choice. do they move forward without them or do they wait on the court's to rule on what they can do. it looks like the democrats are going to move ahead regardless. ont puts a possible vote moving forward on the impeachment sometime before christmas in that sort of window. and so, it looks like this is going to proceed ahead. testimony did rise in dramatic fashion, but it is really clear from watching this and the reaction that republicans and democrats are living in different realities when it comes to the impeachment process. you looked at the front page of the washington post that said diplomat acknowledges quid pro quo and kevin mccarthy said there was no quid pro quo. they both cannot be right, but

they both are sort of living in parallel right now, so it's very clear that even though some of this testimony may have been quite dramatic and laid out things in a very plain and clear fashion, it is also not making much of a difference or an impact among the views of republicans. as this goes forward, remember, impeachment is a legal and political process. the next stage, once the house clears this, is to go into the republican held senate for adjudication. meantime, has public views shifted at all? sarah: public opinion -- >> public opinion has been resilient on that. democrats have gotten more clarity on the public opinion front. this has not been, you know, i think there was some concern among democrats that this was going to be a little bit of a risk to them.

there really has not been any great amount of risk. -- the impeachment polling has tracked president trump's approval ratings here. and the country is fairly divided on impeachment with saying that towards the process is going forward in a sort of fairway. so you have seen this kind of track along the entrenched political rails. right now, the united states is a very deeply divided country on impeachment on president trump on a whole lot of political issues, and this is kind of falling within those tracks rather than carving new ones. great to have you. derek wallbank. in hong kong, the city is said to hold district council elections on sunday, the first opportunity since protests began in june, for the public to make their voices heard in the

democratic process if the vote goes ahead. shery: all of the violence we have seen for the past five months now. joins usernments -- from hong kong. district council elections, usually pretty low-key. things are very different this time. >> sedately. there's been five months of protests in the city and that has focused attention on these elections. the protest began with opposition to an extradition bill that was proposed here but have gradually morphed into a call for greater democratic accountability in the city and demands for universal suffrage. given this is the first vote and that district council elections, being very low level elections, are actually a more direct form of democracy in the city than the cities more powerful legislative council elections, which set aside some seeds for businessmen and other things like that, it has become a bit of a focal point for protesters and the pro-democracy

politicians here in the city. what are we expecting? think we are expecting pro-democracy lawmakers to make some gains based on the momentum of the protest movement. exactlyt always clear who is allied with who. there is 450 two elected positions. some people have not declared exactly who they are with. pro-democracy lawmakers are circulating a list saying who is allied with them. we are expecting those people to make gains and that might mean they will wield more influence in appointing lawmakers -- appointing people who make up this committee that chooses the chief executive of hong kong, so it could potentially have some impact down the line. >> are we seeing anymore reaction in hong kong, whether it is from protesters or the government itself on the fact that president trump could at any moment sign that hong kong

human rights and democracy act? has pushed back quite remarkably against it, putting us in some fairly strong statements as it moves through the senate. i am not exactly sure when we will see a firmer reaction, but carrie lam, the chief executive, has more than once spoken out saying it is totally inappropriate, meddling in the city's affairs. if it actually gets signed into law by president trump, we are likely to see a pretty fiery reaction. that is probably more likely to come from beijing, but we will also see the city's politicians make a stand against that for sure. thank you so much for that. shery: coming up, we will discuss the global impact of swinea's wind -- fever.

this is bloomberg. ♪

haidi: i am haidi stroud-watts from the new economy forum in beijing. shery: i am shery ahn. this is "daybreak asia." the epidemic of african swine fever spreading across the world with no signs of slowing down. it started in china, beijing really seeing the impact of this disease. , sarah.oining us analytic and data to identify some of these trends as

well as the inefficiencies in the agricultural sector as well. disease being one of them. i am wondering how does that how the level of preparedness that governments -- agricultural food shortfalls? >> swine fever is probably the most unprecedented type of outbreak that the global energy industry has seen in the past 50 plus years, and one of the things that makes it unique is that china is the world's largest consumer for the world's largest importer of soybeans. when you think of food demand, china is the anchor of that. for the ramifications it has for the global food market, these could last for another three to five years. one of the things that has made, you know, it very clear to the world's preparedness, meaning

when you see an outbreak, how fast can you react? but also, how fast can you predict what the outcomes are going to be so you know what the alternatives are? do you know how fast it could spread? do you know what the heard side will -- herd size will become? shery: how did it get this bad? that ise of the things very complicated about swine fever is that unlike a lot of other disease, which tends to be airborne, this is just through contamination, right, so it spreads in a very methodical way. but also because a lot of hog farming in china is backyard farming, very small farms. it gets very hard to control disease when you are dealing with homes that have maybe five pigs, 10 pigs at a time, and that spread gets much harder to control than if you have a facility with 100,000 that you can control right away and you

can control the spread, so it is contamination. unlike a lot of other diseases which is airborne, which you can figure out through wind patterns, this is harder to figure out where it goes next. haidi: even without shocks like disease, do you think governments -- chinese governments, for example, are well prepared for the escalation of demand? you have been critical of u.s. governments across food. world as a whole. not just governments. businesses are not prepared to the level and the extent they should be. and the reason is the shock to our systems are increasingly greater. this is shock due to things like disease outbreak or shocks due to things like climate. and these are now happening in the world that is also increasingly more interconnected, so i would say that it is not just government.

it is actually businesses themselves are often times very reactive as opposed to predictive and preventative. for me, similar to the conversations we have in health, we need to have them in agriculture. haidi: i am glad you brought up climate. in australia, we have seen those fires very early in the season destroying farms, livestock. how does climate change -- i suppose in many parts of the world, the paralysis of policy on climate change -- play into how optimistic or pessimistic you are about the outlook? sara:sara: climate change is a reality we need to live with. it means we need to use data to better be able to prepare ourselves for what the outcomes are. if you think of climate change, often times, you think of climate in a single direction. it is also climate volatility. increased floods and droughts in the northern hemisphere, the

southern hemisphere, and the modeling of that rest on a real-time basis becomes -- so social metter manage -- you can better manage it. if we do not do that, then i think we are in a very dangerous place. shery: while we are seeing those natural disasters, tell us about the availability of financing the agriculture market. the problem with sara: financing and insurance in the market is financingblem with and insurance in the market is -- it is entirely backed by government. in europe, it is backed by government. in most other parts of the world, the agricultural sector

is significantly lower than where it needs to be an financing agricultural -- is really difficult. data becomes an enabler to starting to change the sector. one of the big things we need to rethink given the current environment is whether the architecture -- needs to look like for the next 100 years. haidi: the trump administration giving billions of dollars of aid to u.s. farmers. we continue to see the u.s.-china trade war. how badly affected has agriculture in the u.s. been? how much are they benefiting honks inf the lack of china -- hogs in china? sara: the relationship between the u.s. and china in agriculture is significantly driven by soybean and soybean demand. this year, you have to things going on. you have a trade war and you also have less demand from china

simply because there's less hegs. for feeding hogs.when you look at shipments, it is running quite low. still 5 million tons plus this season behind the normal. so it has significantly impacted u.s. farmers in terms of income. however, as you pointed out, there's also the payments that have been facilitated both due to climate impacts and floods in the u.s.. there are also payments facilitated for this trade war. net-net, depending on what state you are in, the payments are not equalized. but farmers in the u.s. net-net this year are actually getting regardless of

what markets are doing. is the industry to be able to respond to shortfalls or over capacities? what does your data tell you about in terms of how quickly that can be flexible to changing flows of trade and relationships? sara: it really depends on what crop you are looking at. there are some where you have very high concentration risk, in which case it gets harder to replace. so i will give you two examples of concentration risk. hogs. china is over 50% of the worlds market. 50%,en you lose 50% of replacing that is not an overnight thing. there's a lot of questions as to whether pork demand is going to rebound to the levels it was or whether the chinese consumer is going to start needing more poultry or alternative protein and start taking hold in the market.

there's a lot of questions to be asked there. market is not going to react very quickly to that. all protection will take -- hog production will take three to five-year spirit avocados, 75% of avocados imported to the u.s. have come from mexico, a very specific location within mexico. replacing that supply chain takes time. it just depends on the crop and the region. there are others where there is a lot more distributed risk. avocados very our seriously in australia. [laughter] haidi: always great seeing you and great to see you in person. thank you so much. sara menker. the new economy forum in beijing, organized by the bloomberg media group and the parent company of bloomberg news. still more ahead on "daybreak asia." this is bloomberg. ♪

.aidi: let's get a preview shery: -- plans to close 30 stores in hong kong as they reported a loss for the first half. which beateye on -- estimates as it expanded beyond its core food and travel business. watching a chinese furniture maker which is to resume trade in hong kong from 9:00 a.m. local time. the stock was suspended

thursday. flagging concerns over the companies cambodian investments. they suffered heavy losses thursday, falling 98% after trading was suspended. out a 2019iping advance. haidi. up, -- coming out of beijing at the new economy forum, including the ceo of china renaissance. you don't want to miss out on those conversations. shery: that is it from "daybreak asia." our markets coverage continues. this is bloomberg. ♪ everyone uses their phone differently.

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>> it is 9:00 a.m. welcome to bloomberg marks china open. i'm live at the new economy forum. >> i'm david, we are counting down ott open of trade here in he city. investoring weighing conflicting trade signal, there's concern over u.s. support for protests in hong kong. the city votes this weekend in district elections that will be a key referendum of all these months of unrest. we'll assess the importance of this weekend's poll. and a question of indepe.