paul: ipaul: am power allen in sydney. the major markets have just opened for trade. yousef: welcome to -- shery: welcome to daybreak: asia. paul: our top stories this

thursday, the hong kong democracy drama takes a new turn. backing the protesters. retaliate,tened to if he did. the yuan also fell. boris johnsont conservatives will win a healthy victory. a quick -- shery: a quick check of the market. japanese yen the strengthening. still at that 109 level. this is after six sessions of weakness. the longest losing streak since 2018. we are seeing some of that risk appetite reading with u.s. features also losing ground.

how the kospi trading is down half a percent. the korean won has been weakening against the u.s. dollar, and we continue to see so we do have the bank of korea policy decision on friday. i have to say that the aussie dollar is under pressure. keenly stocks are up and rising for a fifth consecutive session. let's get the first word news with su keenan. strengthened as a poll suggested the conservative party might win a majority in the next election.

boris johnson is morning that aere could be -- there is real chance of no overall victory and ingles are a lot tighter than they seem. the fed survey of the u.s. economy shows modest growth through mid-november with steady consumer spending and bright spots in manufacturing. a slightly more upbeat tone affirms moderate extension. more regions reported growth time than last. thatous metals are betting gold could almost triple in the next 18 months. market saw huge trades in the latest session.

buying gold at $4000 in june 2021. below thel about 24% all-time high. lowering the factory output. this has the trade war takes an increasing toll. year-over-yearl comparing between original projection. factory production expanding with trade tensions on the shutdown. global news 24 hours a day on tictoc and twitter powered by 2700 analysts and journalists. i'm su keenan and this is bloomberg. paul: this is a move that is seen as straining relations with

china. david. us with more is to get yourd initial reaction to the signing of this bill and what it will mean for the u.s., china and hong kong. >> my first response was, this will also pass. this will not be a long-term problem. i think there is a short-term potential costs. seen bynot want to be their own domestic political deal, at be cutting a the same time that the u.s. is seen to be interfering in internal affairs.

it probably will have a short-term impact, but in some ways, this is president trump's thanksgiving gift. of course, one of the sanctioned against any chinese official to curb freedoms in hong kong. situation,magine a what would that mean? that would invite retaliation, would it not? >> this is a real headache for them to figure out what is going to be a violation of human rights. how will they decide that? i also think, what if you decide to retaliate? what lead do? freeze carrie lam's account in

london? stop her from coming to the u.s.? maybe. it will not be easy. that would be my answer. it will not be easy to retaliate against the chinese government, to punish people in hong kong. let's hope that they do not need to do a. that's hope that it moves forward and we had a peaceful election. let's just hope that none of this is necessary. we still have to see the review of the special trading status, but congress seems to be more optimistic about what they have done so far. u.s. now has many fill tools to determine further influence. week'slowing last

historic elections. the new law could not be more timely, showing u.s. support for the long cherished freedoms. help thek it will mood. it will give them a boost at a a hugeere they just had boost. it will make them more assertive. >> -- will this embolden protesters? say,at is what china will and if there is more violence, maybe they will be right this time. the u.s. has not really been responsible at all for the anger but weists in hong kong, will just see. hopeful,here is pretty

or hoping that the calm will be maintained and that the focus will shift from the violence on the street to the local to betees to be able controlled by the democratic movement. they have a lot of ideas about .ow to push forward they have money for the first time. all of those councils, they all have about 5 million u.s. dollars and there are all kinds of things that the election will lead to that people never thought about because these district councils are of no significance, but everybody has

a buzz about the district council may empower the movement. what will beijing do that? >> if you look at the press conference a few days ago, i do not think she is a lame duck. i think she is a didactic. i used to believe that she had a lot of play. i think she will be tough. i do not think they will make any major concessions. about 70-30. 70% would be my that they do not make any serious concessions. has isry that beijing the legislative council elections in september, coming up next year.

here ine lost so badly this election and they do not sot to lose that election, there would be a majority of democrats in the legislature, moving from local councils to the legislature and the legislature would move to the chief -- chief executive. maybe they do not want to antagonize and empower the toocrats by doing anything nasty, but i think they will try to strengthen their control and influence at the street level with the pro-beijing here. and pouro that quietly more money in. they will work on the united front to try to prepare for the coming election. hong kong university of

science and technology professor, thank you for joining us. for a look at the market reaction to the new u.s. law, let's bring in mark cranfield in singapore. movement in some futures and yuan. what will this mean for china markets? >> we have the usual knee-jerk reaction. higher, theures are usual suspects. a little bit of a surprise to people that it has come on thanksgiving day, but it gives them a chance to do a little bit of trading. you can imagine that they will open in the red. a soft start for china. they probably want to show some response to what donald trump

has said as well. we will get limited reactions. it is not that people are completely expecting donald trump to sign this bill. is thatmore significant we still have this threat that the u.s. will impose more 15iffs on china on december as is tied to the negotiations. what happens now in that respect is that it is becoming important for people in financial markets because there seems to be an understanding that donald trump will be ready to push those further back, if the talks are going ahead, but as you just mentioned, there is a possibility that china will take this as a chance to delay. date.er 15 is the big guest was previous

telling us that this could embolden protesters across hong kong. chart showing us the impact this has had on the hang seng index. what will it do to the hang seng stocks that are already underperforming in those markets? iswhat we have seen also this difference between the msci hong kong. the msci is more focused and they can generate their revenues from hong kong itself. the hang seng is more diversified. we have seen a big underperformance by msci, hong kong, in relation to the broader hang seng.

people will be nervous that the recession could linger well into next year. something saying that unemployment could go to 5%, which is high for hong kong standards. looks like it could continue for some time, that is something that worries people. that is definitely one place that we would expect to see it. ofwould expect a steepening the rates curve as well. we have seen where there is unrest in hong kong. >> -- shery: thank you. the china open will get the views of prominent hong kong businessman. we continue to reach out to

voices on all sides of the debate on hong kong's future. push to get them over the finish line. we will discuss the prospects. and conservatives remain uncomfortable in u.k. election. we will analyze the effects on the sterling, next. this is bloomberg. ♪

shery: is on the move after indicating the conservatives could when a healthy majority. watching this.is we saw the spike in the sterling earlierthe currencies but we are seeing those gains being paired back. why? is the pollt indicates that conservatives

will win a majority of 68 feet, but there is a caveat that says they have a double-digit lead in most polls, and models says the lead goes down. , it has been a little bit -- it ise, so trade very tough for them to jump on this bandwagon because they have been burned before and they do not want to be burned again. paul: we saw the pound making gains on the euro. what does this mean? obviously, if boris johnson -- there arerity other things going on as well. iny had their own issues

terms of the economy. -- if the resolution is achieved, other currencies will rally. markets arehink looking at pmi data and the inflation data. they are focused on the ecb meeting in middle of december and how dovish does she sound or how hawkish? problems, moving forward. paul: thankpaul: you for joining us there. records each day, but central banks are shuttering the euphoria. our next guest, traditionally an optimist is feeling a little nervous. he joins us from the trading

floor in sydney. when you are feeling nervous, what does that mean for other people? >> quite possibly. it is a concerning situation and markets. when we see good growth numbers, we could see investors responding. we could see them selling shares in anticipation. sentiment is the key. 70 investors are looking for qualitative measures for an understanding of where we are. at the moment, optimism is high. we have seen better growth data. it is adding to the optimism. suggesting that in 2020, a majority of equities will be the top-performing asset class.

that really brings to mind that famous quote. are born inkets despair and they die in euphoria. phase entering a euphoric , and that could be a bellringer for equity markets around the globe. there is another potential bellringer with president trump signing into law those changes. earlier this week you were saying that such a move could -- >> it certainly has the potential. the viewas expressed that the passage of this bill is an interference in internal affairs. , it ispositive side symbolic. .t does not have any take

if we see a symbolic reaction, markets may continue on their merry way. if they tie this to the trade negotiations, we could see a reverse settlement very quickly. key to marketre a moves at the moment. even delaying the trade talks, we could see a severe reaction. shery: as severe as what we saw in the third order last year? >> i cannot rule it out. the s&p 500 is close to highs. it would not take much. a small revision of earnings and a contraction today's work level

, so we cannot rule out a severe move that we saw last year. ceo confidence remains under pressure. up.then volume have kept they are looking pretty stable. that they arened backed by potentially cheap that? >> buyouts have been one of the key drivers in the market. week thatcement this it could be a similar move to 2007 minute ticket from the top of the market. a flurry of activity does not top, but we have seen a flurry of activity, which

is another area of concern. thank you so much for your insight. of course, plenty more to come on daybreak asia. this is bloomberg. ♪

shery: let's get a quick check

of the latest flash headlines. theeholders who bought into capital before accused of breaching money laundering laws can ask for money that. after talking to regulators, retail investors have until the end of next week to change their mind. -- theyd the equivalent are seeking more from retail buyers. help paying $20 million to settle suits that claim that resort directors were complicit in alleged sexual misconduct. he was accused by multiple women employees of forcing them into having sex. shery: amazon is planning to hire temporary workers to handle

demand through the holiday season rush. twice as many as last year and they expect a strong fourth quarter. is bloomberg. ♪

paul: this is daybreak asia. shery: the white house is making a pre-thanksgiving push on a new trade deal clothing meetings with officials in washington. narrow theirto differences on the deal this week. let's go to jody snyder for more on this. could we be expecting a thanksgiving gift this week? >> i am not sure about this week but as soon as next week.

fromd the negotiators mexico and canada meeting with them to hammer out the details. congress needs to ratify a, so they need to have something that can get past the democrats in the house of representatives. they have been working to try to get a deal that could get past. she says it has substantially improved. it looks like it could go to them for their approval next week. there hope for the democrats of getting something

done as well? >> there certainly is. they have been negotiating with the white house and the white house says this is the best labor deal in some time, significantly better than nafta. democrats haved been concerned about enforcement and that is what the negotiations have been about, but it sounds like they have .een able to work out a deal there is a lot of procedural , but it could happen either later in december or next year, which is what the president wants. paul: jodi schneider, thank you for joining us.

su: starting with president trump. acting pro-democracy supporters in hong kong, which was expected. it requires an annual review. says he hopes china and hong kong can settle their differences. still in hong kong, police are entering the university on thursday, ending a 10 day siege against protesters barricaded inside. the aim is to return safety to the campus. campus and found only one protesters still there. police say they have arrested almost 6000 people. almost half of them were

students. from ukrainer fire after changing parts of it maps at. they tweeted that the area is actually under russian occupation ended sovereignty has not legally changed. linee maps has a indicating the situation is not clear. player is master throwing in the towel saying artificial intelligence cannot be beaten. ago, he played a five match showdown, winning once but losing four times. he is retiring saying he would not be the best, even as a world number one.

global news 24 hours a day on tictoc and twitter powered by 2700 analysts and journalists in more than 100 countries. and this isn bloomberg. let's check on how we are trading across the markets region. had private numbers out for the first quarter. the expectation was they would be flat. that is an improvement. easing by .2% there. the aussie dollar coming up a little as well. and the cost be are weaker. we had news today that the hong kong policy act has been signed into law by president trump, so it effectively offers support to

the protest movement in hong kong. haveconcern that it might precautions for the u.s. china trade deal. following the most in the dow jones industrial average. checks.l conduct final we have more on this. what is the significance of this move? follows the scrutiny of this delegation process by which boeing employees and engineers were authorized to sign off and certify certain that of the aircraft as it was going through and thisopment process reflects that concern that .erhaps delegation compromised

the max has been grounded since march. it is critical for boeing that it gets back in the air as soon as possible. , will thiswondering extra scrutiny by the faa make that harder and delay it further? boeing has stopped producing the max. course, they do not get fully paid until they deliver them to customers. shery: the credibility seems to be taking another hit. the damage from a september 70 -- whate triple do we know? >> this triple 70 is the first

aircraft to go through the system since the crash. the damage was far worse than previously expected. pressure an explosive that caused a door to blow off, which boeing has said that the and the delaysed to the aircraft have not changed. it is due to be delivered in 2021. it is a headache for boeing. maxy: even if we get the back in the air, even if they get certified, how long with the journey be? he still had to deal with the airlines, investors and so forth. a case of pulling the plug

and letting all the planes fly out. it takes time. program,al delivery even if the faa signs off and approves the fixes that boeing , retrainingn chinas, europe and critically had to do the same. it comes back to this synchronization question. or they going to prove this is there going to be a staggered billing's delivery? for an international aircraft,

it is pre-much unthinkable. thank you for joining us. we still have more to come. the earnings analysis coming right up. this is bloomberg. ♪

paul: this is daybreak asia. shami -- still missing expectations. shares are down by about percent joining us is the founder and ceo. great to have you with us. xiomi.ntly downgraded assessmentffect your of the company at all? >> no.

it pretty much affirms our downgrade. it is very much in line. shery: why are the challenges so big for xioami at the moment? , this corridor, they lost 2.2 rocket share. we estimated 2.5. , one is after huawei. they are facing a lot of pressure. partially, huawei has been rolling out technology faster than anybody else in the market. what is your assessment of

model?s if we take a look at the chart on bloomberg terminal, investors have decided that trade is like a hardware company. 5g andturing quality everything else on the back burner. grail is trying to use hardware to entice. trying to make a profit. this model works for everybody. competitors, if they set their mind on time to make profits. they can do that as well.

for this quarter, the internet service revenue only grew by about 7%. the economy heavily impacts the market. they actually had to rely on growth in internet finance to prop up the software. 2.1, this model can be done by everyone. paul: xioami's stock has slid about 60%. 10 does seem like a lot. how does that seem to you? >> i think they do have a shot. once the 5g phones get on the

market. year, it willt probably still be challenging. means the operators will be hard-pressed to give out subsidies. at the same time, 5g is more expensive than 4g. those antennas are not silicon-based. .he cost curve will come down we think it will come down slowly. high andice is still subsidy is low, i think xioami -- before it hits its sweet spot to benefit. shery: tell us about overseas market. it seems like the highlight has been europe. >> yes. europe is picking up some market

share left by huawei. is doing a better job at doing that then there rivals. note, it ison that out of china market shares. 0.1%. there are some gains in europe. they are hitting the peak in developing countries. , lugosi going forward some rebounding in china. the road is not straightforward. thank you.

blue lotus founder and ceo, do stay with us on bloomberg television for more analysis. and we have an alert on bloomberg at the moment. we are seeing a response on president trump dining the human rights and democracy act. it was almost unanimously passed by congress. it reiterates that the bills are unnecessary and unwarranted, that the u.s. is obviously intervening in internal affairs. the president has signed the actn rights act and another on the selling of police equipment to hong kong. we have gotten reaction from the

hong kong government. plenty more to come. this is bloomberg. ♪

shery: this is daybreak asia. i'm shery ahn in new york. the: a quick check of latest business flash headlines. saudi aramco's ipo fully covered by investors.

reached the equivalent of $7 billion. only lukewarm interest from foreign investors. abu dhabi indicated $1.5 billion. shery: farming industry fell after delivering a more cautious outlook than expected for the conditionsas trade -- demand for machinery has taken a backseat as they worry about who will buy their product. paul: india's flag carrier will have to shut down after the latest attempt to find a buyer failed. ready to solicit bids.

it later became state owned. it has not made any money since 2007. china is stepping down announced it will no longer serve domestic users this month. declaringrenzy after support for blockchain technology. this seems to be a clear differentiation for cryptocurrencies and the technology blocking them. >> exactly. the campaign you mentioned began a few weeks ago, this month for sure. since the original campaign and happened isnk what

that jie zheng paying's comment president jie zheng paying's comment was taken into account. paul:paul: what is the future of crypto going to look like? >> there is a lot of uncertainty. that china,s is like japan, they want to put in comprehensiveand framework for the industry going forward. paul: asia tech editor edward

chen -- edwin chan. yvonne, you have an exclusive interview. yvonne: coming up, the deputy chief is the deputy chief of the defective central bank in hong kong. president trump's latest move to sign that hong kong bill into to assess the u.s. once a year hong kong's economy to qualify for special trading status with the u.s. so a lot of questions now. what does this mean for the long-term prospects? its specialose trading status? what happens to the hong kong dollar pay? we have been reiterating that

are good the fire. they have not seen a huge hit when it comes to the banking sector. especially given that we have seen so many people betting against the hong kong dollar. with the unrest and the squeeze in hong kong, what have authorities said so far about the banking system? yvonne: whether it is with credit default swaps, the hong kong dollar going forward -- come back down after that alibaba ipo. some people say that is why we saw liquidity so tight. they have said that things are looking good and robust when it comes to the banking system. capital investors are still strong and there is no need to change. look at the macro data. apart from tourism, that has

dragged the economy into recession, they have been quite resilient. a monthly net change in hong kong dollar deposits. we saw a decline in august, but by september, we recovered. sees interesting if we will a pick up and what the central bank is doing now to support business owners during this time. paul: yvonne mann and hong kong, thank you for joining us. coming up in the next hour, hong kong businessmen, chairman of the group here to discuss president trump's signing of the bill of hong kong trading status. shery: talking about hong kong, take a listen to the reaction from president trump signing the human rights marcus lee act. they say the bill harms hong relations andtions

interests. it reiterates that the bills are unnecessary and unwarranted and that they obviously intervening in internal affairs. it backs pro-democracy protesters, but also another legislation that bars u.s. equipment,sell police equipment, took hong kong. the government is saying -- to hong kong. saying theynt is are unrelated to human rights. coverage continues as we look ahead to the start of trade. standby for bloomberg markets: china open. this is bloomberg. ♪ whether you're out here on lte.

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>> it is 9:00 a.m. in beijing, shanghai, and singapore. yvonne: we are counting down to the open of trade. topd: let's get to your story. the hong kong democracy, taking a new turn. president trump signed a new bill liking the protesters. china had threatened to retaliate if he did not. stocks beginning to head south. the yen nudged higher. the yen also failed. gains after a poll indicates boris johnson's conservatives to win a healthy a victory in month's election.

trump signing off on the hong kong bill. we have had reaction from hong kong. they say this is meddling in the internal affairs of the city. also saying it will put a strain on ties between hong kong and the u.s. we are looking ahead to what the retaliation will be from beijing. they have promised to push back with their own countermeasures. will they retaliate is the question. david: that is a good point to make. cash markets opened up here. 50 word statements out of the white house. may have changed the complexion of markets as we wrap up 2019. yvonne: those risk assets taking a hit given the knee-jerk reaction. howere just talking about

the u.s. records that were sent when it comes to the dow and s&p as well as the nasdaq. third quarter gdp. things took a turn around. asia, tough to follow that track record. u.s. futures down a third of 1%. the offshore bremen be weakening. beensteady that we have talking about leading up to a phase i deal being signed soon, that cracking trade we are off from the lows of the session. japanese yen out of the six month highs we have been seeing. spot gold picking up a touch higher. let's show you what we are watching out for. not a whole lot of movement for treasury. we are getting into the thanksgiving holiday in the u.s. markets are pretty quiet. 177 for the u.s. 10 year. they were declining. we are looking mixed in it comes

to asia. atp futures also pretty foot. china was one of the few markets yesterday that ended in the red after the numbers yesterday. we are wanting the pound extending the gains. the tories may be able to solidify a majority in next month's election. we have su keenan in new york. su: the sterling strengthened thate poll suggested compares -- the conservative majority may when a comfortable majority. the survey of 50,000 voters sees the tories winning 359 seats. aide to u.k. prime minister boris johnson is warning of the possibility of a hung parliament. dominic cummings says there is a real chance of no overall victory and that things are much tighter than they seem.

the latest fed survey of the u.s. economy shows modest growth from mid-november with steady consumer spending and some bright spots in manufacturing. a slightly more upbeat tone than in october. it affirms the general outlook for moderate expansion. more regions reported growth this month than last. there were a lot of regions that sell no growth at all. apple is under fire from ukraine after changing some version of app to depict crimea as being part of russia. washington tweeted the area is actually under russian occupation. its sovereignty has not legally changed. the marley -- the more widely used google maps has a dotted line boundary indicating the situation is not clear.

global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. story in a move that could further strain u.s.-china relations, president this billed into law that expresses report -- expresses support for the protest movement in hong kong. that could complicate recent efforts to wind down the ongoing trade war. yvonne: let's bring in our managing editor. is any of this a surprise? >> no. he did not have much of a choice. they would have taken effect either way. congress basically unanimously supported this. was either he vetoes it, which politically gives the democrats a line of attack, or he signs it.

and he did sign it, he said, certain things, i have the discretion not to implement. he also said he had a lot of respect for xi jinping. he was trying to signal, let's not derail trade talks with this. i am reading between the lines. it all depends how china reacts. china knew this was coming. they knew the president had his hands died. how does -- his hands tied. how does china respond? they will definitely scream and shout. whether they will take any concrete action -- we saw the u.s. go after officials in shenyang. this bill is somewhat connected it allowed sanctions that were not there previously. the rest is similar to what the president can do already. from that aspect, it is more, what does this mean for markets and the trade deal? tom: you touched on this a little bit.

does the review process start immediately? what are the prospects of the sanctions? the u.s. state department already reviews hong kong's autonomy every year. they issue a report. antill definitely of the e. this is not something the u.s. does not already look at constantly as far as the reviews of whether hong kong is autonomous from china. the president could pull the whole thing. he already has that power regardless of the bill. the big question now is, how does china respond to that? yvonne: thank you again. the asia government editor joining us in hong kong. guest is anext business leader.

discuss us on set to the latest development. good morning. asking for permission might be a little extreme, but a part of me wants to think that maybe the may havese communicated to beijing before this became public. beijing will likely respond publicly. do they retaliate is the question. >> that is a good question. trump had no choice and it the middle of an election coming up. it was passed unanimously. the house and senate could have vetoed it even if he did not sign the bill. it is a foregone conclusion that he would sign. china was prepared for this. he signed a letter to xi jinping almost apologizing

for having to do this but having no choice. war is something they both want to keep on track. that is something that is very important. the retaliation from both -- from china side will not be that your estate. countries is in both interest to have the bill signed. it is like having the therapist -- the terrace. it is a thanksgiving present for everyone. yvonne: does it put at risk hong kong's special trading status? does impact people who want to work here? >> i think i have been asked that many times. as business people, we are all here because of the 1.4 billion consumer market in china. inrybody is in hong kong

head offices or doing business -- that is -- that has attracted most companies to be here. is also have the gpa, which 70 -- the gba, which is 70 million people. of doing business -- for business people, they are not really political. business people look at the prospect of making money and finding a way to grow their businesses. david: much of the assumption is anchored on the special trading status. with whichmechanism they will revisit that. the would be in your view immediate impact? >> i am not that concerned. that mechanism has always been there by the u.s. government. they have always looked at hong

kong to make sure it is significantly different from china, from beijing. hurdle.just another you adjust to these things. when the trade war came in, people adjusted to the tariffs. they found ways to work around it. this will just be another hurdle that everyone will get comfortable with. we have had it since 1992. i am not that concerned. we just had the alibaba ipo. even with protests and all that, it has been down. the financial industry has been almost unaffected. the stock market came up pretty well in spite of it. alibaba just affirmed this is the future for them. hong kong is the place that is -- that they are going to be concentrating on their businesses. you have more and more chinese

companies as well as international countries. -- international companies. somee: we just came off resounding support for the pan democrats. carrie lam offering nothing particularly new. this seems to galvanize a lot of protesters. you see that it risks furthering more violence or action in the streets? or do you think calm can be sustained? >> in effect, there has been a great calm the last week or so. i think that this will persist. have -- the people have voted. last sunday was a remarkable day for hong kong. there was a peaceful election held. when 17 --ocrats did did win 17 out of 18 districts. it was kind of a shock to

everybody. win,e thought they would but they did not think they magnitude theye did. it sends an important message both china and the hong kong government that there is a problem. it has to be addressed. yvonne: how are they going to address it? she did not offer anything new? . >> i think they understand they have to address it. they understand they cannot just stonewall. there has to be a stonewall. many young people will be taking part in district councils all over hong kong. are 21ll be -- some years old. this will be a real test. it is very good for the future. i am very happy this happened because at the end of the day, if there was a 55-45 vote,

things would have been complacent. the fact that it was so lopsided think fact that now -- i that now, both governments have no choice but to do something special. david: things had been relatively quiet prior to the election. as your team observed any incremental pickup or improvement in foot traffic? >> actually, i have. i was having lunch yesterday. the first time in a long time where we had a packed house in all of the restaurants. just in general, there is a better feel-good factor. even speaking to some retailers because shopping centers were affected badly. we can feel there is a better mood. with optimism, you get out of the recession quickly. yvonne: always great to have

you. to allinue to reach out voices on both sides on the ongoing debate on the future of hong kong. thank you for joining us. do not miss our interview with the deputy chief executive, howard lee. he is going to be coming up in a couple of hours or so. talking also about what hong kong is doing in terms of helping small businesses that have been hit by protests. the future of that special trading status. tom: looking forward to the interview. the fix is out. 7.02. just marginally stronger than the estimated, which was 7.0276. 7.0271 at the level we are trading. have seen a little bit of weakness. the currency is taking this news of trump signing off on the hong

kong bill. we will see if that changes. currently, the offshore currency trading at 7.027. what is poised to be china's biggest listing since 2015. we discuss why postal savings banks ipo could see waning investor interest. sterling jumping after much anticipated survey suggesting a big win for the tories. this is bloomberg. ♪

tom: you are watching bloomberg markets china open. we're less than 15 and its away from the open of trade. we want to check in on some of the risk assets. in terms of the safe havens and own of course and the yen.

this is on the back of the story of the news that president trump has signed off on the bill supporting hong kong protesters. it is not a major surprise because what the congress had done is locked his arms or tied his hands. he has gone ahead and done it. there has been a bit of a risk off mood. again has strengthened. gold is up -- the yen has strengthened. gold is up to tens of 1%. -- two tens of 1%. david: initial reaction. algorithmic and portfolio trading. good morning. it has been quiet before this morning. those what happened this morning ruin the quiet? surprise if we are talking about trump signing off on the hong kong bill.

keeping to looking for the next few hours is, are there any retaliations going to come from china's front? more importantly, the november 15 tariffs. expecting -- if it is not deferred, it is going to be negative. for now, it seems there is a little bit of a risk of mentality. no major reactions. we are still waiting for more clarity as to have a is going to react. yvonne: everyone is looking ahead to december 15 those tariffs have not and imposed. do we need to hear mark -- have now been imposed. do we need to hear more? previous tariffs have to be rolled back to sustain what we have seen so far? >> to your question, yes. tariffsto see that the need to be postpone. that is what the baseline is. if that is not delivered, we

--ld see further what is more important is until now, we have seen progress. there has been momentum forward. this could be a potential turning point. in asia, it is a slightly different space. more so than the trade war, we have other issues. we have ongoing tensions happening. correlations in hong kong have peaked to a high since may. it is higher than the u.s., europe, and japan. companies tofor move in lockstep to what is happening. conch, and still pretty directionless. invite -- hong kong is still pretty directionless. does the bill signing by

trump add an additional risk? stocks are so cheap that it is looking attractive. we do not see protesters out in the street right now. previously, if you recall, i talked about the levels in -- the key support levels in hong kong. just last week, we saw that being tested. we so 200 bouncing off pretty nicely. valuations are still pretty attractive. compared to the actual date -- a key story is, how are we looking at hong kong going forward? we could be looking at how investors position themselves. they could be developers returning. even the chinese bank valuations are still very cheap.

hold that thought. e. will have more from joann stock has specific resumed trade today. for 25ncellation prizes a share. sherry's reacting to that as well. we will get to the open next. a kind reminder that we are not just on tv. bloomberg radio is broadcasting from our studios in hong kong. it is on the app and the website. it is also on the terminal. play more ahead. you're watching bloomberg. ♪

tom: welcome back. you are watching bloomberg markets china open. a quick check of the business headlines. hong kong has struck a record land deal. the player above the high-speed rail station has gone tests on

hong kong. the site is baited to yield 300,000 square meters of floor area. results reported mixed in the third quarter with profit rising but still missing expectations. income rose 1%. it helped offset slowing smartphone sales. sales fell to 32.7 million units. we are going to get gains. have a look at this crappy. china first capital was down 75% yesterday. the company says it is unaware of why the price is moving as such. ok. agribusiness. going private.

the tone is down. down to hundred points. the openness coming up next. you are watching bloomberg. ♪ when it comes to using data, everyone is different.

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yvonne: you are watching bloomberg markets china open. we are seeing a flat open and a shanghai. hong kong feeling more pressure after president trump signed the hong kong human rights and democracy bill into law. no surprise. some say it was almost unanimous. we are seeing a knee-jerk reaction today in the markets. linewe are getting a crossing the terminal saying china is reiterating its threat

to retaliate. we heard previously from china, saying it would take strong countermeasures. we are waiting to see what form that would take the key question for investors is, could it derail the trade talks? both sides are saying there is still progress in terms of the phase i deal. does this put up a barrier said the negotiations is another question. a bit of a mixed picture. the csi 300 essentially flat as is the shanghai and shenzhen composite. maybe investors just waiting for more news in terms of the trade front. we did also have news out that china is looking to frontload some of that special bond issuance. to underscore growth in the early part of 2020. about $143 billion. we can move it on now to the 10 year yield. this ties into the

infrastructure story. the back of the prophets yesterday -- asre is a renewed question to whether additional monetary poly will come -- monetary policy will come into place. that yields have been softening a little bit. we had a fix that was marginally stronger than estimated. is lookingt the cnh at. not a lot of movement in the offshore currency. there has not been for a good few weeks. david: here we go with the open. to write home about. within .3 of a standard deviation. have a 1% down. spot 17 roughly was our starting point. have a look at what we are seeing as far as movers are concerned.

mtr will open a little higher. almost giving of the gains. -- giving up the gains. mtr will open a little higher. we will talk about shall me, also out with earnings. not changing the narratives on the stock. that is something we will talk about. tom was touching on the currency chain the points that our guest, who will be joining us in a couple of seconds if i keep this short basically said. you look at the options market, three months and one-month. one month is your yellow line. we have seen a further decline. one-month month captures the december 15 when king -- december 15 win. that is getting priced out at the moment. yvonne: seems like things are looking a little more peaceful. there is a lot of questions about -- we were talking about the valuation plays an

volatility. now.ring back joanne you were talking about the correlations between the shanghai composite and the renminbi. when your call last week -- said he was cautiously optimistic, this is what -- it is a prop 8 illustration. to me, when someone -- a perfect illustration. to may, when someone says they are cautiously optimistic, it is basically like not saying anything at all. n, itor the yua was a different phenomenon. more importantly, to recognize the trading events. i do not see that breaking higher anytime soon.

on in theis going global context, it is very much bounded by the 727 trading. have beenbal volumes shifting toward the close. what should i read into the? >> -- the close -- what should i read into that? in asia.st yvonne: you talked about that. it is the smart money. david: you wait and then get in. >> that is part of it. asx, there wase a 30% increase and a closing volumes. why that is important is because in hong kong, just recently, all stocks in hong kong are eligible for the close. all stocks are now eligible for the close. if you look at markets in new zealand, all of the volumes have been at the close. the excitement happens during the bow.

why that -- during the bell. even if they are traded, it is not benchmarked to the close. -- for more defensive traders, you might want to -- because of the volume to the close. that could impact your trading performance. impacting cost of trading. the best algorithms are trading dashboard trading strategy should anticipate further skew of volume toward the close. tom: are you seeing a pickup in volatility? there has been a lack of volatility in a lot of markets. is that starting to change? u.s., it is higher highs and lower lows. in hong kong and china, they are relatively paste to look at. it could be a good complement.

it is a -- start of the trading session, there has been increased volatility. wider trading spreads. bloomberg function on called the trend momentum volatility. if you look at the first 30 minutes of the trading session, it is usually with the bends are the widest. trading could be -- traders like to sit on the start of the market. in my opinion, where there is volatility, there is a portion that likes to take advantage of the debt. if you are a traitor it is benchmarked get -- a traitor -- theyaverage fuel prices get done in the opening sizes. being able to look at your estimates, i could help in terms

of helping your trading performance. 30% of the stocks highs and lows are from the open. tom: let's expanded out a little bit. you say looking to 2020, you expect to see continued growth. in terms of building resilience, you say that is key. how are you doing that? >> it is a nuanced message in terms of taking on the right wrist. where the maintain market momentum is. 2019 has been a year where central banks have taken a accommodative policy stance. this momentum might spill over through the start of 2020. i will be cautious about where to put my money. if i look at japan, it is susceptible to a slowdown in the chinese market. itself, the government is constrained by the policies a can take on. for the rest of asia, depending

on what kind of stimulus comes up with china and other risk involved, if that is not managed properly, we might still see the rotation. i think the latin american markets could be interesting to look at. if you look at mexico and brazil , valuations are really cheap. if we look at the macro environment is still pretty stable. yvonne: you mentioned about the opportunities. we see global equities go strength to strength. the macro data has not been matching that. we have seen this divergence. how long can we sustain this where we see the week data -- the weak data but markets that go higher? >> there has been a lot of overindulgence. might have been a little excessive. if we look at it, for china.

let's look at china. there is more room for policy easing. to moreet could look gradual rate cuts for next year. for the rest of the world, we have been seeing too much of overly unconventional rate cuts. at thanksking potentially -- it seems like they are in a recession. they might not be a lot they can do to prop up the markets. what is important is to look at physical prop -- fiscal policies. more important is the need for countries to work in concert rather than isolation. progressive trade talks will be key in 2020. david: let's get it over to su keenan. she is in new york. su: we are going to start with the hong kong government. it says the u.s. legislation that bad pro-democracy protesters is unnecessary and

unwarranted and obviously interferes with the city's internal affairs. president trump has signed the bill, which requires an annual review over whether hong kong is sufficiently autonomous to justify its special trading status with the u.s. china has specified -- has threatened unspecified valuations. this is the trade war continues to take an increasing toll. manufacturing output is expected to follow 3.8% year on year. that compares to an original projection of flat growth at best. factory production for 2020 is seen as expending at two a 3%. trade tensions in the shutdown of two refineries zapping the manufacturing index. metals areprecious betting that gold could almost triple in the next 18 months and hit $4000 an ounce.

the options market in new york saw a huge trade in the latest session. lots for an option giving the holder the right to buy gold at $4000 in june 2021. polian has rallied 14%. it is still 24% below the current all-time high. the listing that could beat china's biggest since 2015 is facing headwinds. this as investors lose interest in mainland stocks. postal savings bank is looking to raise around $4 billion. mainland exchanges is down 71% from a march high. that has coincided with a series of lackluster ipos. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan.

this is bloomberg. coming up, a major new poll suggests boris johnson's conservatives remain on course for a comfortable went in the u.k. -- comfortable win in the u.k. election. this is bloomberg. ♪

david: we are talking brings it. elections coming up in the u.k.. ofthe move, a little bit strength. we are paring back from the highs these last 60 minutes or so. the news of this poll indicating conservatives could win a healthy a majority. david is in singapore. ?hould i believe this poll we have been heartbroken before.

have thek that is problem. traderse last election, got burned by the polling chain this -- by the polling. there is a heavy focus on it. -- that the conservative party will retain the majority. there is always a caveat. the caveat -- the pacific poll said if lead jobs to 7%, there is no guarantee they will obtain a majority. can two weeks to go, a lot change. going, wey traders are not going to take anything for granted. david: what would the reaction be if we get that scenario? >> a hung parliament is not a

good scenario at all. you would expect -- ofjust means more same again congestion. nothing getting done. it would be very tough to get boris johnson's brexit deal through parliament. to be ask for another extension? -- do we ask for another extension? all of the uncertainties weighing on the economy. economic data will continue to deteriorate. that is another thing to focus on. don if the conservatives obtain a majority, the markets will focus -- we will see sterling rally a little bit -- but we will focus on the economic data. any rally will be short-lived as markets focus on anything else. if it is a hung parliament, you can expect to see sterling set off quickly. tom: the other element as the

fiscal stimulus. parties.major to what extent could that play into sterling? does tort -- the tories are promising significant spending. >> certainly, it is all a balance. labor's point of view, because they're going to spend so much, the market will go, that is not really good. does the credit rate get deteriorated as a result? if it helpsside, support the account may, that is a positive. the key thing becomes, at what price? does it affect the credit rating? if it does, a could end up weighing on the stirring -- on the sterling. out allreally mapping we could see next month.

you can catch up with our interviews using the function tv . also, if you want to stand any questions throughout our morning show, send it our way. the blue link, ask a question. if you have any questions for mr. howard lee, send them my way. this is bloomberg. ♪

yvonne: you're watching bloomberg markets china open. the incoming president of the european union's executive arm is vying to shift the focus to politics. david: she spoke to bloomberg in strasberg about working more closely with european businesses on tackling the issue. >>-get is a must for all of us because we know climate change is existential.

there is a huge opportunity. at the moment, we are the european front runner in fighting climate change. new technology and green financing, we have 40% of all of the -- if we do well, it is not only good for the planet. it is not only good for the people. it will also be good for the european economy because we will be the exporter of knowledge, technology, and we will be the front runner. >> if you look at the friction we have seen between germany and france, as the head of the european commission, do you see a bigger role for the e.u. within nato, or do you believe it is time to consider a bigger european army? >> nato will always be collective defense article site. it is the strongest ella terry aligns in the world. the european union has a different world -- a different

role. we have many european member states that are also members in the nato alliance. noturopeans, we feel we do leave nato. the european union is called upon. if your member five years ago in the, the european union had will to answer the crisis and fight terror. either the procedures or the structure. we are building up the european defense union knowing it will become -- it will be complementary to nato. have from development investment to diplomacy to servicemen and servicewomen. so that we are able to act when called upon. tom: that was the incoming e.u. commission president speaking to bloomberg in brussels -- in

brussels. the csi is up three tents of 1%. ip stocks are up for tents of 1%. let me get you to business flash news first. we are going to keep you updated. before we get to the markets, reports from hong kong say alibaba is on the fast track to the main trading index. cherries will be included on the han song conduct -- the hunt sign contact. 90% of the capitalization of the exchange. casino mogul steve wynn is to pay $20 million to settle shareholder suits that claim directors were complicit in has allegedly sexual misconduct. he stepped down in february of last year after being accused -- after being accused by multiple employees of forcing them to have sex. outstandingying the 21 million. retail shareholders who bought into westpac's capital raising the four it was accused of

breaching money laundering laws and ask for their money back. westpac says after talking to the regulator, retail investors have until the end of next week to change their minds. the banks all the equivalent of 1.3 billion dollars. is seeking more for retail buyers. farming industry bellwether dear fell after delivering a more cautious outlook than expected for the year ahead as trade tensions keep customers from replacing large equipment. demand for machinery has taken a backseat as trade concern has farmers wearing about who will buy their products. construction equipment purchases are also set to the claim. it's check back in on the mainland markets. the csi up three tens of 1%. trump has signed off on the hong kong bill. we also have the news that special bond issuance is being fast-forward. that can feed into some of the infrastructure stocks.

i.t. stocks on the mainland are up. industrials are up five tens of 1%. energy, essentially flat. the hsi down to chance of 1%. china has reiterated it will retaliate. the offshore currency not doing much on the back of the news. holding the line at 7.024. yvonne: we continue to see the weakness. it seems we are off the lows after the knee-jerk reaction we have seen after president trump did sign the bill into law. we continue to see pressure on u.s. futures ahead of the thanksgiving break. well.n as we are still hovering around 10940. we are seeing a little bit of a break in spots. gold, 1457.

david: yvonne was taking you through some of the assets. broadly speaking, new zealand is at an all-time high. asset australia as well. in case you missed it, the u.s. inflation slightly milder than expectations. u.s. growth is slightly better than expectations. quite -- the question today is, how much further can stocks go with our earnings following through as well? ont week, -- pmi is saturday. also, how -- how china will retaliate. how they plan to do it. yvonne: they have reiterated the retaliation. at this point, it has been much of the same in terms of the language. an interview coming up. the hong kong monetary authority deputy chief howard lee is going to be joining us in the next couple of hours. we are going to be talking about

what this means. the bill being signed into a law right now. plenty of tom: questions on that. tom:questions about with -- plenty of questions on that. tom: questions on the quiddity. plenty more ahead. this is bloomberg. ♪ everyone uses their phone differently.

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♪ david: you went to harvard business school. steve: yes. david: did you enjoy it? steve: no. david: did you want to drop out? steve: yes. david: you went out to raise a fund, was that easy to do? steve: i sort of looked at that and went omg, we are going to fail. david: in 2007, you thought decide maybe i should take the firm public. steve: i took it public for a lot of different reasons. i had a sixth sense that something terrible was going to happen in the environment. >> would you fix your tie? david: well, people would not recognize me if my tie was fixed. but, ok. just leave it this way. alright. ♪