>> welcome "bloomberg daybreak: australia." i'm haidi drug. haidi i'm stroud-watts. >> i'm shery ahn in new york. ♪ >> here are the top stories we are covering. china's factory outlook write-ins as manufacturing improves. mr. fix it takes over. musturnaround veteran restore public trust in

australia's biggest business bank. theteargas returns to streets of hong kong as police and protesters clash again. >> first, let's get you started with a quick check of the markets close on friday. s&p 500 index seeing the biggest fall in seven weeks. of course, there are people just waiting for any sign of progress on the u.s.-china trade negotiations. at the same time, it was a shorter trading day just after thanksgiving before the weekend, so it was 16% below the 30 day average. energy and consumer discretionary leading the declines. nasa fell -- and nasdaq fell half a percent as well. we have the opec plus meeting this week. there are signs they may not want to cut even further at the moment. let's see how things are shaping up in asia. after managing to cap a third month of game, asia stocks

tech starting december trading, nikkei futures up more than 1% in chicago. ross mcewan starts monday as the bank faces a list of challenges. at the weekend, the australian newspaper reported they failed to monitor customer activity in countries like iran for almost a decade. plenty of data to consider this monday. at the weekend, crude exports fell for a 12 month, while chinese factory output rebounded. today, a private gauge of chinese manufacturing may see a pullback in november. we also have pmi and inflation readings from across asia. here in hong kong, retail sales are due, the double-digit slump expected to continue. haidi: sophie kamaruddin there in hong kong.

let's get you first word news with paul allen. paul: china is reiterating that it wants tariffs rolled back before any trade deal can be agreed. the u.s. plans that scrapped new levies cannot replace the lifting of existing measures. they also said the u.s. interference in china internal affairs and buying of american commodities could threaten any potential trade agreements. police and protesters clashed again and hong kong over the weekend. blocked roads and set fire to the entrance of a subway station. thousands of people marched in the busy district, angry that the government offered nothing in despite democratic wins the district council elections and support from the u.s. congress. reports from japan say the government is putting together a fiscal stimulus package that could be worth more than $90

billion. nikkei news says ministers will discuss the plan with the ruling ldp this week. the economy is stuck in low gear and inflation start really weak -- stubbornly weak. asales tax increase and string of natural disasters. opec's oil strategy has been upset with one leading member stepping away from the general agreed plan. the cartel and independent contracts are considered deeper curves on per structure -- destructive. the opec plus groups meet this week and are suspected to prolong restrictions be long -- beyond the expiring match. australia setting up a task for foreign interference and with continued speculation china has been meddling in its political affairs. the government is putting aside $60 million u.s. for a panel headed by a senior officer from australian intelligence. it will draw on support from the federal police, financial crimes

agency, and cyber intelligence experts. 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'm paul allen. this is bloomberg. shery: thank you. the latest gauge of china's manufacturing sector jumped unexpectedly, signaling a recovery and activity amid government support and a stalled stabilizing economy. 50.2,nagers index rose to the first reading above 50 and expansion territory since april. our china correspondent tom mackenzie has the story in beijing. is this just a fluke or the start of the end of the downturn? reporter: this is the key question for the short answer to that is we need to wait a few more months and possibly until the third quarter of 2020, according to some economists bloomberg has been speaking to. you are right, it was a surprise, it beat the estimates. the manufacturing pmi launching a number of 50.2, the first time it has been in that expanded

stage above 50 since april. then you have the nonmanufacturing pmi at 54.4. again, a pretty robust number for things like services and construction. the question is, will this be prolonged?we saw in terms of the breakdown in terms of the sub indexes and manufacturing data, export orders were up. still in contractionary areas, but they have not -- have substantially. it suggests the trade winds that have been easing are starting to lay out in the manufacturing sector and more broadly as well, there is a boost in sentiment, even as enterprises continue to shrink.they . you talk to bloomberg are phnom x, they say don't read too much into the data yet. you will have to see another few months, may 1 quarter 2020. we should expect pboc to continue. if you look at other data sets

in terms of industrial profits or five -- factory gate prices or consumer prices, it suggests the downward pressure on the chinese economy does continue. haidi: a lot of that hinges on how the trade talks continue and whether we get a deal in the next weeks and months. where are we at particularly as we continue to wait for more details as to whether we will get retaliation after president trump signs the hong kong bill? reporter: absolutely. we haven't had any clarity from the trainee set yet -- chinese side yet. what we had heard from the global times men -- newspaper is that if the u.s. continues to "metal" in china's internals affairs, it might jeopardize talks. tweets andalso commentary that the u.s. was -- china aher

specific quantity in terms of agricultural purchases. they say that also jeopardizes the future of these talks. they say that they need to roll back, not just a scrapping of they december 15 tariffs, but they need to be rolled back as well. if that is an accurate -- accurate portrayal, those challenges and hurdles remain. shery: given that uncertainty over trade, the economy, any chance the pboc could veer away from the current stance of targeted measures and we could see full-fledged monetary easing? reporter: that's a very good question. we heard from the pboc governor who came out in a commentary piece of the weekend saying it was essential that the central bank did not resort to unconventional measures at this stage. he said the pboc should be prepared and officials should be repaired for a prolonged global slowdown saying monetary a lessee should remain prudent, but with room for adjustment.

again, staying they should -- saying they should stick to policy as long as possible, they should stay focused and targeted and not competitively lower rates to 0% or engage qe. he also reiterated he would try and keep the yuan flexible and not engage in competitive devaluation. some interesting lines suggesting that they are not ready to open the tops in terms of aggressive monetary easing and they will remain prudent and keep their eyes focused centrally on the data coming out domestically as well as externally. playbookicking to the for now thank you, tom mackenzie with a wrap up of the latest. still ahead, a new man at the helm, i'll be it temporarily. what it takes to really build customer trust. shery: up next, morningstar's dan moore gives a thumbs up to health care and a thumbs down to

utility. more on that next. this is bloomberg. ♪

shery: i'm shery ahn in new york. haidi: i am haidi stroud-watts in sydney. you are watching "bloomberg daybreak: australia." clashes between police and protesters have resumed in hong kong after a brief lull. stephen engle joins us from hong kong with the latest. after the weekend elections, previously we would see a bit of are seeing thewe situation resume to what has become a new normal for hong kong. reporter: that's right. it's about six months long now. ull we saw -- l , it that election victory has ended. carrie lam did not give into concessions or offer up any new concessions despite the election defeat for the pro establishment

lawmakers. so people took to the streets and it a rub it into violence again both in the big tourist area, and also some stores vandalize in a nearby district. as you can see, teargas was fired by the police as protesters would not disperse. they were throwing bricks at the police. again, rally, rinse, repeat cycle again here in hong kong. it had been brewing since late saturday when there was a relatively peaceful march. there was another march in support of the u.s. action on capitol hill and donald trump signed a hong kong human rights and democracy act. and march lastly night did turned violent and we

did see riots on the streets until 2:00, 3:00 this morning. shery: given all of the unrest, any chance the retail sales numbers that we get later today could be anything but pretty awful? think?r: what do you it is going to be pretty bad. we have a bar chart where we could see over the last six months, the pattern has been sloping downwards for retail sales. we kind of knew this would happen on friday. tourist arrival numbers for october. golden week was down the most on record for mainland chinese shoppers, the biggest ones for hong kong. down more than 45%. that will likely translate to a huge dip in retail sales. the estimate of economists survey is looking for a dip of 21.8%. this is an odd chart. it should be a little flipped around. obviously, it is a bigger drop in october. it is a ski slope downwards.

it's getting worse and worse and worse since may, obviously. shery: i was wondering. clearly, it is just downwards. really bad numbers. we will be looking forward to those later today. chief asian correspondent stephen engle. joining us ahead of the global equity research, dan rourke. the firstg to note, thing i really focus my attention was you called the hong kong market the most you.ctive for of course, we have seen the decline in equity prices, but given all the unrest that continues, why do you say that? >> it is partly a relative comparison we are making. that's because we have characterized the u.s. market is somewhat overvalued, and for example, the australian market is one of the most overvalued in the world. shery: let's talk about the hong kong markets. you mentioned the

underperformance has been led by those real estate companies. the chart on the bloomberg showings the process -- prices declining. where do you see the opportunity? >> we are not in the business of sharing where the business will be headed in the next quarter or the next year. what we are interested in is and's to meeting intrinsic values or analysts in the region. space, theumer health care space, and in the education space. we are seeing more companies trade at prices below long-term intrinsic value. shery: how would you compare it shares?and we have seen the outperformance clearly in the shanghai composite and other indices on the mainland. will that divergence continue? i would assume in the long run, and this is a bit outside my expertise, that we will ultimately see a convergence of

the two. shery: callous a little bit about the chinese mainland markets and what parts of that narrative you like. we continue to hear from the pboc and the governor saying they are not really expecting much more in terms of stimulus measures. respect to the chinese market looking across the sectors, it is the consumer facing sectors that we are finding the most value in. consumer goods, health care, education, for the most part. shery: we continue to see though when it comes to the chinese eco-data that they are under pressure. retail continues to grow but they are still missing expectations. how much longer can we bank on chinese consumers especially when sentiment seems to dampen and they are willing to spend? >> as far as the near term, that is not an area we pay particular

attention to. a lot of our views on the long-term are informed by demographic patterns we see for china, long-term productivity growth. when we run the numbers, we remain quite optimistic on the consumer side. on the gtd chart library showing the activity indicators in china not looking good when it comes to the long-term pattern. let's talk about the u.s. market. in your notes, you say the u.s. market is still slightly overvalued. sectors forill find opportunities going into next year? >> looking at sector valuations, the story is quite different from how we enter the year from our perspective. beginning of the year, we felt tech was the most undervalued sector. now we have characterized tech as among the most overvalued along with a few utilities. at the moment, we are liking the

sectors that had the most negative short-term sentiment, so that will include energy, health for example. shery: i have been wanting to ask you more about those calls. do stick around, we want more of your views after the break, morningstar head of global equity research dan rohr. we will have much more coming up here this is bloomberg. ♪ ♪

shery: let's get it quick check of the latest business flash headlines. leader,a bank has a new reins.ewan taking the the bank stumbled and february when the ceo and chairman both quit after a report on widespread industry misconduct singled them out for special criticism. he earned his reputation by reviving the fortunes of royal bank of scotland, returning into profit after years of losses. aat chrysler has clinched

tentative new deal with the united auto workers union after agreeing to double investments in u.s. production amounts earlier that in the year. the carmaker has committed to boostng $4.5 billion to outputs of jeep suv's and ram trucks. it will do the same in the next four years and will add almost 8000 new jobs at the same time. uber faces a court ruling later monday amid criticism from traditional taxi companies and claims its operation breaks the law. the app offers transport in larger vehicles in a margaret where -- market where uber fails to make inroads. still with us, morningstar head of global equity research, dan rohr. thank you for sticking around. you are telling us your forecast for the u.s. market for energy.

wti prices falling below seven dollars a barrel. we have the opec plus meeting this week. they don't seem that willing to cut even more. why do you like the energy secretary in -- sector in the equities space? >> we are not expecting oil prices to bail out shares in the long-term. the long-term forecast for wti, $55 a barrel. we are nonetheless seeing opportunity in the space. given all the heavy negative sentiment weighing on the shares, kind of a baby with the bathwater phenomenon. we see a lot of high-quality producers in the u.s., particularly in the permian basin. these are lower-cost producers with a stronger growth trajectory in the years to come. they can turn a profit even if we slip lower. at $55 a barrel, where we expect oil to be in the long-term, these companies survive.

haidi: i'm wondering, we spent many months talking about the potential impact of a phase i deal when it comes to a trade talk here at how meaningful is it at this point, given that a mini deal has been priced? is it more likely we have a downside risk if we don't get a deal signed by the end of the year? there willptimistic be some resolution to the prevailing issue, but i think investors need to be prepared for similar issues to manifest in the years to come. win-winere may be issues in the realms of economics and value alignment, there are fundamental tensions on each of those fronts that any deal in the next few months isn't going to resolve. haidi: are you liking retail and consumer names into the middle of the spending bonanza of cyber monday and black friday, deals

going into the holiday season, are they looking positive? >> it has been interesting to see how well the u.s. consumer has held up this year. some of it has to do with the increasing tightness in labor markets and continued rise in employment rates, wages on the upswing.-- consumer confidence seems to be doing quite well and that's what we are seeing in the holiday shopping season. haidi: and that's what we will get another indication of at the end of this week. do you expect given the consumer story has been one of the rare bright spots locally that it will trickle through to the stocks going to next year? >> looking at the long-term, where we are seeing the biggest opportunity is in stocks that might otherwise be characterized as under pressure from the amazon threat that are really well positioned with respect to their omni-channel strategy.

there are a lot of cyclical names we are looking at. the sectors underperform relative to consumer demand models. haidi: speaking of tech, what do you like in that space in the u.s. market? >> as i mentioned early on, tech along with utilities, we characterize it as one of the most overvalued. one of the top picks would be at the long-term while the company is without a doubt facing competitive pressures in the near future, we do still like the competitive profile of the company on a longer-term basis and we think it will be able to fend off the threat from andy. since there is negativity when it comes to farmer and health care in particular, is there a space or you expect to see more opportunity in 2020? dan: as to whether the opportunity comes to pass in

sure.i'm not we are focused at morningstar on estimating the long-term intrinsic value of companies as opposed to predicting short-term price movements. but when we look at intrinsic value, health care, like energy, is a sector that is taking it on the chin in 2019. one of the two sectors that is has relatively underperformed compared to the rest of the market. we are interested in companies that have built strong pipelines. we think generally, the market is underestimating the strength of these pipelines related to oncology, a space we like a lot. one of our top picks and health isabdi.the moment -- is abdi. it will come under considerably negative pressure related to the .pcoming loss

shery: we have to leave it there, we are out of time. thank you for joining us, morningstar head of global equity research. plenty more coming up. this is bloomberg. ♪

haidi: it is 9:30 a.m. here in sydney. the market open is about 30 minutes away, the start of a new month. looking for a little bit of positivity when it comes to the start of trading here in sydney after u.s. markets retreated friday and what was a pretty lackluster pre-thanksgiving holiday session to close out that month. i'm haidi stroud-watts in sydney. shery: i'm shery ahn in new york where it's 5:30 p.m. you are watching "bloomberg daybreak: australia." let's get the first word news with paul allen. paul: thank you. the aussie dollar strength and after data on saturday unexpectedly showed china's official manufacturing tmi rising above the 50 level for the first time since april.

50.2 reading easily beating estimates. that boosted investor confidence. one reason to caution is a tweet from the global times sunday saying china wants tariffs rolled back and part of any interim trade deal with the u.s. the german government faces a crisis after the coalition partner elected a loony russian new leader seems like a threat to chancellor merkel -- coalition partner elected a new leader that seems like a threat to chancellor merkel. they say they have no intention of toppling merkel, but may issue policy demands that the chancellor might find hard to accept. the european union is beginning a new era with a leadership change at a range of institutions. is replacedjuncker while christine lagarde succeeds mario draghi. this marts the 10th anniversary of the lisbon treaty that strengthened the range of eu institutions. a cutthroat teleprompter --

telecom price war may be easing in india. the three largest mobile providers say they will raise the price of subscriptions after the government estimated they owed billions in license fees prices.trum the industry has been caught up in a price war since asia's richest man launched a low-price carrier reliance geo in 2016. macau casinos showed further weakness in november, heading for the first annual revenue decline in three years. gaming revenue was down more than 8% on 2018, although that did beat estimates. there's a host of reasons for the decline including the trade slowdown, and weakening yuan, as well as ongoing unrest in hong kong and the emergence of rival gaming in southeast asia. 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'm paul allen. this is bloomberg. shery: australia opens at the top of the hour.

let's turn to sophie for what to watch. sophie: let's get a quick check on the aussie dollar, which is holding a three-day decline. the upside could be limited by talk of china on rollbacks. plus, we have a gauge of australian manufacturers on the low, head of the rba's likely hold tuesday and third-quarter gdp data do from australia wednesday. on theng to check in kiwi, hanging onto earlier gains. some support perhaps from the stronger than forecast terms of trade for the fourth quarter and new zealand's government plan to boost infrastructure planning. expect the kiwi to move to the top of the range. euro,k check on the slightly higher against the pound after a fourth month of losses. thepound drifting lower in asia session after the labour party gained on the tories in four out of five polls ahead of the election.

haidi: sophie kamaruddin in hong kong. let's take a look at trading underway. market editoral adam here. one good pmi meeting does not a proper recovery make. is this enough to give another leg up in the rally? reporter: i think that's up for debate still. whether or not people are taking this as a sign or indicator of the global bottoming in the pmi indicators, but also, the service side of the economy holding up. whether it kicks on the rally is a bit of a moot point because we are coming to the back end of the year, where you tend to get a drop of value. certainly going into that december 15 next tariff deadline, which is still a very important date for people to focus on and the overall picture that it looks like we are going

into 20 with a resolution in the works. it does leave a little bit of room for upside, but of course, u.s. equities are pretty much capped out around the record highs last week. we saw volumes of being with the thick -- thanksgiving holiday. people are wanting to allocate more money. we've seen nice three months of gains. it does lay the foundation better than expected economic data point coming out of china confirming the bottoming of global pmi's and then if people do want to use that is another reason, they may add an -- more to equities. shery: we have seen a pretty good year for the stocks and volleys portfolio. continue 2020? reporter: we are in that period where there is so much of those outlook coming in, a lot of investors thinking about how the allocation is shaping up for 2020. you are right.

pretty much the best year since 2013, that kind of 60% in equity . whether or not you want to be taking more in the bond position is still up for debate going into 2020. with the fed on hold, globally central banks may be looking away from the easing we see in the last 12 to 18 months. somewhere youy can expect large levels of capital gains. of course on the equity side, the earnings picture continues to remain quite clouded. we have been talking about how the trade war looks like it is easing somewhat and going into 2020 looks like there's some kind of an agreement at least in some phase of the deal, but the earnings picture is still reasonably cloudy. there are not many on wall street getting overly optimistic about how 2020 could work out for the earnings picture. in a sense, no one is really

looking for the kind of return this year going into next. haidi: thank you so much, our bloomberg global editor adam haigh. opec may have thrown a wrench into strategy as the group prepares to meet in vienna this week. iraq considering deeper curves on production even though other producers are reluctant to take such action. our energy reporter is tracking this. what do we expect from vienna? we were not expecting much until this piece of news came out. >> good morning. i still say deeper production cuts are likely -- unlikely to be announced deeper this week. we have comments from the iraqi oil minister suggesting a cut of 400,000 barrels of oil a day. that has raised a few eyebrows given iraq itself has struggled to come up with the cuts that were already agreed. the compliance has not been

great. certainly the message we have been getting out of saudi arabia, a dominant player in opec, is they are getting fed up with backsliding and some of the other nations, russia and iraq, failing to come up with agreements to the cuts that were already agreed upon. ant likely, we might get agreement to extend current cuts out to the middle of next year. shery: what does it mean for oil prices? wti under the $57 a barrel level. there are varied opinions on what that means. we have certainly had a few banks come out to say if we don't get deeper production cuts , crude could slip below $50 a barrel level. for therish predictions demand balance in the early part of next year. particularly with trade war concerns ongoing and the impact that is likely to have on the

performance of the global economy. there is potential for downside risk. we saw a sharp drop in friday crude, but that was on the trade with many still out for the thanksgiving trade. we will see how the market performs early this week. we also have banks saying prices could still stay around $60 even without production cuts. some people are predicting a more positive showing in the global economy, which could help boost demand. it is a mixed picture. certainly what you could say is we don't get the cuts, then it could put the market under more pressure. all eyes will be on vienna and the meeting this week. shery: james thornhill, thank you. our energy reporter in sydney. coming up next, we will be joined by michelle levin, from australia's longest and largest established research company discussing the outlook for

westpac in the wake of the banking scandal. this is bloomberg. ♪

shery: i'm shery and in new york. haidi: i'm haidi stroud-watts in sydney. you are watching "bloomberg daybreak: australia." the national australia bank welcoming a new leader having left at the royal bank of scotland. new era in the wake of the financial scandals. you don't envy someone like him coming into the sector. >> no, he has a tough road ahead of him. the flip side of it is he is this new broom. arred withard -- t the new scandal. public trust and political trust in the sector is pretty much at an all-time low. i feel like i keep saying that every time, but then a new

scandal comes along. ahead.t this long road at the same time, he has to keep investors happy. earnings are to pressure all of the australian banks. he will have to turn that around. shery: talking about these scandals, how is the westpac scandal going to affect things? this. me think about but it is going to do is it will -- them acus on now little bit more. they have self-reported problems with anti-money laundering compliance. we do not know what the scale of these problems are. it has declared them and reported them but it doesn't know whether it will face legal actions. when investor said they are getting a little nervous after seeing westpac and commonwealth bank go through this. everyone is wondering what the

scale of the problems are at nab. there's a flipside for ross mcewan. although the spotlight will be on him, it will still be on westpac for a while. he does have a little bit of breathing room to make changes. being he is credited for behind the turnaround story when it comes to his previous role. you mentioned cba went through a similar money laundering allegation. does that give us an indication of what lies ahead for westpac? >> i think it probably gives you a flaw. it is very hard to see why the agulators would settle for lower settlement cba paid. the analyst rangers are somewhere around $1 billion is what the speculation places about potential assessment penalty for westpac. remember, cba was $700 million. these are figures in the wind.

no one really knows. the theoretical penalty is in the trillions. it is a number that simply no bank would be able to endure. that is sort of the number most people started into the forecast. are little bit nervous. great to have you as always. emily cadman, always very busy world. part of the after seeing criticism from shareholders and the government, the westpac ceo stopped -- stepped down today. michelle levine is the ceo of australia's largest research company and she joins us from melbourne. great have you. we were just talking to emily about the past job ross mcewan has coming into the top gig trust.o rebuild public is it possible?

what do they need to do? >> i think it is. what we need to look at is why did it end up where it is? i think the roy morgan risk report read -- measures trust and critical mistrust. we are talking about a situation mistrust. the banking sector in australia is the most distrusted sector, more than mining, more than gambling, and more than even the media. let's make more mistake. straily is looking at a kind of contagious disease of distrust. -- australia is looking at a kind of contagious disease distrust. it came through less distrusted than any of the big four, but today if we ask australians, more than 60% distrust westpac. there is work to be done. what we actually say is to make a difference, everyone knows the difference between right and wanting toanyone

actually rebuild trust has to focused first of all on understanding distrust. we say that you need to put distrust on the risk register of thatoard of the company so the board is consistently looking at distrust, considering what it is people are worried about, angry about, and focus on that. do not leave it to someone else. that's where the moral blindness comes in. if a board is willing to not ask those questions, preferring not to know, it's a difficult situation. the other thing we would say is that it is critical that we stop these organizations, particularly banks, stop bonuses based on net promoter scores. when the net promoter scores stop being a measure of customers and how they feel about the bank and instead something to stop bonuses, it changed everything.

that will continue to drive the wrong behavior until that is actually stopped. we have seen multiple ceos really fall when it comes scandals ands negative headlines when it comes to the banking sector in australia. down.hartzler steps we have ross mcewan coming into stage a turnaround. one of the criticisms at cba is .t took too long do you think fresh blood helps when it comes to people like ross mcewan coming in from the? outside? >> i think there's every opportunity it can make a difference. if the actions i talked about , but simply removing the top one or two people is

almost necessary, but not sufficient. and isw person comes in weighed down by the culture of the bank and is not able to find doesn'trect paths and look at all the hard questions and doesn't absolutely demand the board asks those hard questions, that person might find themselves in trouble. --ry: we keep talkuing talking about the banking sectors and the rise of distrust. does that partner into consumer actions and do they care and change behavior? >> it is a really good question. what we actually see is while the bank is the most destructed sector, the banking system is actually still trusted. people trust they can put their money in the bank and it is safe. they trust they can get their money out when they want it. they basically trust the system. at this stage, we are not seeing

a massive exit us of customers from the big four banks per the kind of things we have to remember is at this time in history, the big banks are being challenged by many other things. you actually have new entrants into the market that are headquartered overseas so nobody knows about any skulduggery going on, you have digital players where it doesn't feel like there's anybody doing anything wrong, it is all just technical. there are plenty of options, but at this stage, we actually see quite a strange thing going on. when we talk to consumers, we ask people, how do you feel about the bank? they are outraged. they are devastated about the behavior, about the greed. but when it comes to their own bank, they kind of like it. they are happy with the service. it's a wonderful challenge, but it's very close i think to a tipping point. there will be potentially people who distrust the bank that began to say, too much, i am going

elsewhere. shery: when you look at all these issues in the australian banking sector, how unique are the problems compared to other places? at you mvs, you also have big mbs, you also have big distrust for financial places. >> i can't really speak to the u.s. what i would say is in australia, this anger with the banks was unrecognized until we started to ask people about distrust. it's interesting. banks and everybody else happily measure the positive side of the coin. they look at how satisfied customers are. would they be likely to recommend the? if they are not a customer anymore, get rid of them. it's basically just looking at the positive side. until we look at the negative side, we had no idea the pain people felt. we had no idea how outraged and

foolish they felt that they trusted too much. i suspect in america, we may have a similar situation, if only you look. but it's really critical these things are now out in the open. i have to say with the royal commission, you would have expected that the banks would come through and it's like a poster child for good governance. you would think they would look carefully at every part of their behavior, every element of the system. i think this is what australians are really gob smacked about. they can't believe it's still going on. that's what's challenging. i suspect you might find the same in america, or perhaps the american banks behave dutifully -- beautifully. [laughter] shery: i doubt it is the latter, but yes. [laughter] is just an accident waiting to happen. it should be -- sorry? haidi: usually when you see

discontent and a sector, you see room for disruption. the nature of the industry being regulated the way it is for australia, does it make it difficult for disruptive new players? we ask that for digital only vendors appearing more to millennial generations. in the industry is middle of disruption. this is not something that might happen, it is happening as we speak. what we have to recognize is people don't really need a bank. what they need is a house, they need to be able to buy products, they need to be able to do something. the bank was an instrument that enabled them to do that. the industry is already being disrupted. place.ave to find their they have to make sure they continue to have a social life -- license to operate. we talk about an industry that is heavily regulated, and the

australian people believe it is heavily regulated. but when you see the regulations being floated as they have been, people don't know what to make of it. flouted as they have been, people don't know what to make of it. haidi: michele levine, ceo at roy morgan, thank you very much. you can dive into any of our securities on the bloomberg functions we talk about. join another conversation. send us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv on the bloomberg. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. nissan's new leader takes control later on monday with the former ceo facing a string of challenges and a threat to the existence of the company. the last time nissan was so weak

was two decades ago when bankruptcy loomed. however, the arrest of carlos ghosn, strained relations in the alliance, profit is at decade lows with thousands of jobs cut. shery: singapore'sshery: straight own -- state owned investment company and talks to invest up to $100 million in an indian fitness start up app. the platform offers a range of workout platforms at the gym or at home, as well as healthy food delivery service. the report says the app is seeking a valuation of around $800 million. nintendo seems poised for its best holiday season yet for the switch console. estimates compiled by bloomberg say it will probably sell 9.5 million hardware devices and almost 65 million units of software in the quarter. the current forecast is only a slight improvement on last year, but games deliver most of nintendo's profit. shery: in the next hour, we will trust to by northern

discuss conviction booms and more. this is bloomberg. ♪

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morning.ry good i'm haidi stroud-watts in sydney. shery: good evening from global headquarters in new york. i'm shery ahn. sophie: and i'm sophie kamaruddin in hong kong. welcome to "bloomberg daybreak: asia." ♪ haidi: top stories this monday. china's factory output prices, manufacturing improving. above 50 for the first time since april. nissan looks ahead to the new ceo as they face