shery ahn: i'm shery ahn. president trump is standing by the saudis.d not jeopardize relations with the u.s. ally, citing the potential impact on oil prices and iran. he went on to discount conclusions from his own intelligence agencies about evidence linking the crown prince to the killing of jamal khashoggi. "it could be the crown prince had knowledge of this event. maybe he did. maybe he did not. we may never know the facts." kinzinger.now, adam always great to have you with us. does saudi arabia have much leverage over the united states as the president makes it out to be? >> i don't think so. i do not think it is leverage. i chalk this up to what i have had to say, right policy, wrong words. this is a tragic event. it is egregious. that statement from the president should have used 1.5 pages for the point. we believe the act, we believe it was probably directed by the highest levels however, when you look at a terrible area and see what is going on in the area, saudi arabiave to theyran, and russia, could have killed journalists in moscow, politic

shery: i'm shery ahn.es say chevron and at some mobile are among companies submitted first-round bids for an oil producer. the auction process is expected to value the company at $15 million including debt. but there controlling family still prefers the option of an ipo next year and continues to work towards that goal. haidi: vice president mike pence amidst -- arrived in asia amidst the is the duration of a draft report on whether to impose tariffs on car imports in japan. this will be on his agenda when he meets with shinzo abe later. that u.s. commerce department is investigating the import of vehicles and auto parts as well. looking at asian markets, taking a look at how australia is trading. seeing declines over 1% at this point, the biggest since late october despite the 5% recovery rally we have seen through to the close yesterday. rest of thethe region, futures might be looking positive but the asian session is not. more: nikkei futures down than 1% while kospi futures as well. more daybreak asia

this is bloomberg. ♪ shery ahn: this is daybreak asia. i am shery ahn in new york.erspective on the state of u.s. markets headed into the weekend, let's welcome a chief investment officer and investment manager with 12.6 billion dollars in assets. thank you for joining us in the studio. let me bring up this card on the gte library. homebuilders have really taken a thanith stocks losing more one third of their value this year. on a pe basis, we are seeing pessimism among homebuilders. given the importance of the housing sector for the u.s. economy, what does this tell us? >> for many in the u.s., it is the canary in the coal mine. a prizecomes as knows because rates have been going up and mortgages are -- no surprise because rates have been going up and mortgages are higher. the one thing we would point out that is different this time than a decade ago is that the percentage of adjustable rate mortgages that people own is a far smaller percentage. as rates go up, the impact on their ability to make those mortgage payments, that impact is a lot less than it was going

shery: i'm shery ahn in new york. we are counting down to asia's major market open. ♪ haidi: please other top stories we are covering in the next hour. oil will be in the stock -- in the spotlight. saudi arabia is reducing exports starting next month. alibaba delivers a shopping sensation. sticky -- seeing a record $31 billion of sales in 24 hours. the lehman brothers, the fed says u.s. banks are still falling short on risk management. check oft's get a markets closing on friday sessions. we saw u.s. stocks being pulled down to we saw the s&p 500 lose 1%. the dow also lost 8/10 of 1%. we had weak earnings coming out of the tech sector, which pulled down technology shares. the nasdaq losing more than 1.5%. the energy sector was also down. the 10thound for consecutive session which was the longest losing streak ever. we did see saudi arabia signaling potential production cuts during the weekend. we could see a rebound in oil. let's keep a close eye on that market. we will keep you updated on that story later in the prog

shery: i am shery ahn in new york. stocks with a rough start after the latest falls on wall street. joining me is lee zan saunders, from charles schwab. great to have you with us. it was surprising to see volatility in october. that is -- it was not surprising to see volatility in october, but there is some even after the midterms are gone. is this telling us something about the future of the bull market? it has a lot to do with broader conditions not the least being tighter monetary policy in the united states, tighter financial conditions and less liquidity from global central banks. our theme coming into 2018 was we were moving into a new, volatility. of volatility one important thing to remind investors is the last couple of years, lack of volatility was the exception, not the rule, moving back into an environment where you see normal exception, not the rule, moving back into an environment where you see normal marketability. that is a function of the liquidity tied now moving out. we have had 10 years of liquidity

shery: i am shery ahn.ooking ahead to the economic data, our next guest says china short-term growth matters for the rest of the region while the philippines cpi reading is a most important singles data point. joining us is the chief asean economist for a great to have you with us. we know the philippines have been ravaged by typhoons september. cpin numbers, the survey saying 6.6% year on year growth in october and why are they important? >> what matters is the central bank and most economies were expecting inflation would peak in these months. when that happens they can focus on other things but until then there are acute supply concerns particularly rice weighing on the economic outlook. it is serious enough it is starting to impact of investment and the entire outlook. ifis important to see momentum starts to show signs of peaking. shery: we have china's october trade data. the trade war escalation has boosted china's exports because of frontloading of shipments. the real question right now is for how l

i am shery ahn in new york. haidi: i am haidi stroud-watts. nings, we also have black friday and cyber monday getting geared up. shery: i am excited. haidi: first word news. aipac -- apec summit roundup without a joint communique for the first time since 1993. officials said china balked at the wording of the wording on trade where it they would declare any unfair trade practices. the trade war overshadowed the talks. people treated back and forth. >> mankind has once again reached a crossroads. which direction should we choose, corporation or confrontation, openness or closing one's door? the interests of all countries in the future of mankind hinges on the choices we make. rosalind: the trump administration will issue its jamal into the murder of khashoggi on tuesday, indicating the killing was ordered at the highest level. the cia said the crown prince approved of the murder although president trump said that could never be proved. the president also said a cia report is for mature. -- premature. mr. trump: will anybody really know? he had p

this is bloomberg. ♪ shery: i am shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. e watching "bloomberg daybreak: australia." company --tate-owned shery: has been charged with conspiring to steal secrets from micron technology. the indictment is the latest fact that -- faction in the pursuit of china for suspected economic espionage. bloomberg news enforcement reporter david mclaughlin joins us from washington. could you explain this indictment and who has named, and what are the charges? david: the charges are conspiracy to steal trade secrets from macron, as he said. the companies that were charged --re chinese company called i am forgetting the name actually. the other company is taiwanese. united microelectronics. a very well known company. individuals, three individuals who worked at those companies who were alleged of taking the technology, the ip from macron. shery: what technology does this indictment cover? david: macron makes what is called dynamic random acts of memory. it is a type of computer memory. it is the only u.s. manufacturer of these types of ch

shery: i am shery ahn.e had to mark crumpton. president trump says the united states will issue its own report by tomorrow. he denies the central intelligence agency has made a judgment in the matter. according to media reports, the cia has included the saudi crown prince ordered him to be killed. the white house is refusing to return the press pass of jim acosta this by the court ruling. he told him to reply with his own arguments as to why he should be able to keep it. his lawyers wrote back saying it would be a violation of his a rejection of the court's decision. theresa may is appealing the .oters to back her brexit plan she urged them to listen to what business has to say because business is providing jobs. like the planness because it points to a future relationship of close ties with the european union. the deadliest fire in california's history has created unhealthy air. in some parts of the state, the air-quality exceeded world health standards by 60 times. the poor air quality is likely to remain

shery: i am shery ahn in new york.ia's royal commissioner looking into banking misconduct, the big lenders being called to testify over the coming days. our reporter is watching this for us. what are we expecting today? reporter: today we are going to hear from the biggest of the australian banks, commonwealth bank. it is one that has been most exposed with the regulations of the royal commission and it has had many hearings. the final before the judge goes away and set the final report is policy questions. not individual secrecy and failings but the wide swath where it was allowed to happen. we saw a list of banks behaving badly. we could see any upside? emily: the banks are determined to show they have changed. the relatively no coo of commonwealth -- new coo of commonwealth bank has been apologizing. they have learned their lesson. they will get another opportunity to tell us they have changed. but to be honest it will be another week of bad headlines really. there is so much criticism, and that will be a net -- ano

shery: i am shery ahn. federal reserve's first ever report on banking supervision issued friday says more than 40% of major u.s. lenders are falling short in critical areas of risk management. our editor kathleen hays has the details. even with the shortcomings listed in this report, the fed's vice chair said lenders are in good shape. why? kathleen: let's find what they found. failing to banks measure up when it comes to risk management. itis pretty important, isn't ? they got high marks on the amount of capital they are holding. that has been pushed so hard by the fed and other regulators, liquidity reserves, they could have another downturn. where the fed sees risks -- mismanagement. remember it being too big to manage? protectacks, failure to the banking system overall and less than 60% scored well on strength measures. this needs to be addressed. the vice chair of supervision speaking on friday at an event in washington said all the data would show us a healthy industry. return on equity is the highest

i am shery ahn in new york.i: and i'm haidi stroud-watts in sydney not just stock selloff in the u.s. oil and cryptocurrencies also suffered. larry kudlow remains optimistic. >> the economy, the basic economy, has reawakened, and it is going to stay there. i am reading some of the weirdest stuff, how a recession is around the corner. nonsense. my personal view, our administration's view, recession is so far in the distance i can't see it. haidi: who is right and who is wrong, wall street or the white house? jo daviess, chief global economist at vanguard, joins us today. it larry kudlow being shortsighted, maybe? >> i don't know about that. rarely does anyone see a recession coming. i think it is a little too strong a statement that financial markets have a recession imminent. we don't have high odds of one over the next 12 months. we are seeing a clear picture that earnings growth, economic growth, although still fairly strong, is not going to accelerate. in the context of high valuations, i think that is one re

. ♪ >> live from bloomberg world headquarters, i am shery ahn. >> i am amanda lang.elcome to "bloomberg markets." the top stories we are following from around the world. directionthe market looks for amid the political drama. plus, the business of fried chicken. the ceo of the philippines' largest fast food chain is here to discuss expansion plans. shery: let's get you started with a quick check of the major averages. we are seeing u.s. stocks next at the moment. not surprising given investors have so much on their plates, including the ongoing brexit saga, trade tensions, italian budget spreads, and less that we heard from jerome powell. he really played down the market volatility we have seen recently. we are seeing some stress on equity markets, although it seems we have been able to offset all that. the dow rallying .4%. this comes after really volatile session with the s&p 500 also under pressure because of retailers losing ground on negative earnings coming out of some names like to see 10. the pound -- like jcpenney. the pound falling as much as 2% at one poin

shery: i am shery ahn. sophie: i'm sophie kamaruddin. welcome to daybreak asia. haidi: our top stories, backing for brexit, theresa may claims cabinet support but leading eurosceptics warned they will vote against it. the e.u. says the situation has changed. northern ireland will remain in the customs union. asia-pacific markets will be digesting the news as well as earlier declines from wall street. sterling had gains made on the deal. we have news that prime minister may was inching closer to a draft brexit deal we saw optimism from that, u.s. stock markets trying to pare losses but it wasn't sustained. we saw the downfall .8% to tech shares taking a big hit with apple leading declines and after falling .9%. -- nafta falling .9%. use of the ucs ma, it is so hard to keep track of all of the acronyms, but nafta 2.0 in question. democrats have taken over the house. we are seeing the s&p 500 fall .1%. futures under pressure but some positivity came from the oil markets as we saw oil prices halting the 12 day losing streak, sophie. reboundwe have the oil to contend

. ♪ >> live from bloomberg world headquarters in new york, i'm shery ahn.manda: and i'm amanda lang. welcome to bloomberg markets. here are the top stories we are following from around the world. decision day for the fed. we are 30 minutes away from the november fomc statement. we will discuss the key statement -- the key issues to watch with economist dana peterson. a stall in the rally. a emerging market funds turn tactical as em equities struggle to break past their 50 day moving average. bloombergnner is -- businessweek releases its 30th annual ranking of the best business schools in the u.s.. which made the top three this half hour. let's get started with a quick check of the major averages. u.s. stocks are under pressure, the dow giving up most of its earlier gains after hovering near the one-month high. the s&p 500 and the nasdaq also losing ground. energy leading the declines on the s&p 500 as we see oil losing ground for a nice consecutive session. we also have a tech underperformance, and disappointments from square and roku. 10 year yields are do

i'm shery ahn.aidi: our next guest says investors have a chance of chinesequality companies for a decent discount. but they must be selective area great to have you. opportunity -- an opportunity for stock seekers. them a graphicof story we have been talking about for the last couple of years? long-term structural trends still exist. this year has been one of those years where china and the u.s. enacting tight monetary policy. intensified.s business confidence got dented. the second half of 2018, business confidence fell. credit tightening measures got very intense, leading to a credit crunch. now the authorities are cute of the measures put in place. acute of the measures put in place. you have to be cautious. great buyingng opportunities. baidu, alibaba. attractiveing at valuations. haidi: i want to throw up this chart, showing the direct inverse correlation of u.s. financial conditions and tightening and equities. get as the report suggests the fed take a pause in the rate hike cycle by spring of

i'm shery ahn. markd now we go to crumpton.yoday -- two wildfires could cause up to -- could cost up to $2 billion. the fire in northern california accounted for the bulk of the damage, killing at least 79 people and destroying thousands of homes. the trump may take another shot at china on trade. the government is considering tighter curbs on technology exports. deutsche bank says that that would have a "profound and lasting adverse impact on relations between washington and ."ijing caravan inthe tijuana have been arrested for minor offenses, drug possession, public intoxication, disturbing the peace and resisting arrest and that they will be deported to their home countries. the mayor of tijuana has said that the city is not comfortable with the caravan the began arriving last week. fighting between saudi led coalition forces and shiite rebels flared up again today, despite u.n. calls for a cease-fire. the fighting undermines the latest u.n. efforts to end the three-year war. tens of thousands have been killed and much of the

shery: i am shery on. -- shery ahn.e told there was no explanation of the delay in the call is expected to be rescheduled soon. boeing is under fire over an airspeed sensor that can order the 737 into an emergency dive. the stock has slumped 11% since last month' lion air tragedy. shaidi: singapore has confirmed to bloomberg that the police -- it what color crime unit is involved in a new investigation into accounting practices and noble group. they are said to have offered false and misleading statements. the inquiry comes four years after the first concerns were raised about the commodity trader and the move towards its rescue plan. its largestened ever story in the -- in manila. asia.tlet will be in the base equivalent of one hundred 50 basketball courts and almost twice the size of a typical ikea shop. $135 million earmarked to build, stocks, and staff the store, which will cater to 5 million households. haidi: a lot of furniture. james gorman says he is not concerned about the recent selloff. or his bank's ability

i'm shery ahn. i'm amanda lang. looking to bloomberg markets. here are the top stories we are watching around the world. junk bonds are suffering the worst carnage since 2016. the market punishes in canada. a five and a half billion dollar deal for field exploration. eyes will be on apple after the close. this will be the first time we get to see the performance of their new iphones that were really expensive. we have seen their average selling price continue to rise. >> at what point does it get to the point that people don't upgrade their phones? i was noticing that one number you watch with companies like this is retail sales numbers. their store sales are expected to slow to 11% growth. i was expected to upgrade and i did not. well did hold up very after the selloff that we saw in tech. we are seeing the nasdaq gaining 1.6% area at i have to say the mega cap tech stocks are down. the s&p 500 gaining 9/10 of 1%. all of this recovery continuing after the worst month that we sinceeen for u.s. stocks 2011. the dollar also coming down falling the

shery: i'm shery ahn in new york.stroud in sydney. the whole world reacts as we watch asian supplies after the u.s. counterparts took a hit from apple's disappointing first-quarter forecasts. joining us from taipei is bloomberg's opinion columnists, 10 kaufman. -- 10 kaufman. who is looking the most wonderful at the moment? tim: well, basically everyone's horrible at the moment. the witness seems to be the iphone for the quarter that has just finished, it does look vulnerable. going to the next quarter, we're looking at that, too. one of the issues was that it's at the end of the outlook for apple in terms of revenue. they are giving shipment forecasts, so there may be more shipments of units but less of the lower-priced ones. it's a function of two things, asp plus shipments. one thing i'll say is the supply chain doesn't get off as badly as it might look. because apple's gross margin outlook is weaker than expected, the flipside is that more of what is being spent does go back into the supply chain. on a relative ba

shery: i'm shery ahn.pple is in its longest losing streak for more than six months as investors reassess its growth prospects amid demands for iphones. shares extended their slump, losing 11% over the last five days. and raising more than $100 billion in market value. apple's year to date gain is now about 10% down from almost 40% in early october. haidi: tencent has bought itself time to find an answer to installing game business by beating expectations of the september quarter. net income reached $3.4 billion banked on windfall from an investment. grew at theenue slowest pace in three years. this as china's clampdown hurt the tencent green and broader division. shery: regulators are discussing whether to issue a self-care fix for the 737 mac, last months crash in indonesia. the disaster is linked to a glitch back in order the plane to enter a steep dive. boeing and the faa say they are a value in the need for upgrades including operating procedures and training. boeing stocks fell for a fifth the day. lo

shery ahn, thank you. that is all for "what'd you miss?"ne: "bloomberg technology" is up next. joe: have a great evening. this is bloomberg. ♪ >> i am selina wang in for emily chang. this is "bloomberg technology." in the next hour, apple misses the company. -- apple misses. at iphonesrice year failed to spark excitement? plus, google walk out. protests against sexual misconduct. we will disc

shery: i am shery ahn.iving shortened the week, and we will see thin trading volume which could mean more volatility. let's get to first word news. ros: the apec summit wound up in papua new guinea failing to issue a joint communique since the first time since 1993. the china balked at the wording of trade, [indiscernible] all unfair trade practices. the u.s. trade were overshadowed the talks as they traded barbs in back-to-back speeches. >> let me make this clear. the belt and road initiative is an open platform for open corporation. it is guided by the principles of the consultation and cooperation for a share of the benefit. it is not designed to usurp any political agenda. it is not targeted against anyone or exclude anyone. it is not an exclusivity closed to nonmembers or a trap some have labeled. ros: the trump administration will issue its report into the investigation on the murder of tuesday,shoggi thinking the murder was indicated from the highest level. say the prince approved the murder. preside

haidi:-- shery: i'm shery ahn.ork fed president is the latest fed official to share his take on interest rate policy. >> unemployment is very low. the economy has a lot of good, positive signs. for us, it is just keeping a good balance, keeping this economy strong and stable. we, will likely be raising interest rates somewhat but it is really in the context of a very strong economy. >> he was speaking in new york, adding that the fed is not locked into a preset course. our fed reporter was at the speech. did we get anything new from his comments? >> nothing hugely new. what we got from his comments was the identity the -- idea the economy is still strong and they will be cautious in hiking rates. he was careful not to make it sound like they will be too aggressive in their path forward, which is very much in line with what we have been seeing from speakers over the last couple of days. >> just before williams gave the speech, we got the biggest drop in us home builder confidence since 2014. is this really proving t

let's get to our daybreak asia host, shery ahn. what is the state of play right now? it is the hill divided. shery: it was as we expected. whole showed that democrats would take over the house and republicans would keep the senate. that is what we expected to see. right now we are seeing democrats having a net gain of 33 seats, which is a 10 seat advantage over republicans. the gop still maintain the seats ind, unseated indiana, north dakota and gaining a see and tennessee. that did not leave much leeway for the democrats. a blue wave, but not the blue wave democrats would have liked to have seen. president trump calling democratic leader in the house, nancy pelosi, congratulating her on the majority in the house. but also calling mitch mcconnell, the senate majority leader, congratulating him on his historic gains for the republicans. all in all we can still say it was a historic race. in the sense that 100 women are now expected to take seats in the house, which would be surpassing the record of 84 in the current congress. anna: another blue wave, maybe a pink wave.

here with more is shery ahn. the ceo of nissan is driving the guilty before being proven instant the point here -- innocent viewpoint here. shery: he was a protege and he has been driving this investigation within nissan and also explaining it toward the public. we are in a situation where we are headed toward the board meeting happening thursday afternoon. that's overnight in the u.s.. it is a nine-member board and will be decided over a simple majority. sources telling bloomberg it will be difficult to secure that unanimous decision given some of the directors used to work under him and they may not back the dismissal until they learn more about the situation. we have seen his statements come saying this stage the board is unable to comment on the evidence seemingly gathered against mr. ghosn and the japanese authorities. romaine: there seems to be speculation this might be a little bit of a corporate to -- coup. shery: exactly. it given we had heard of the grievances from the japanese side when it came to the a

shery: i'm shery ahn. sophie: i am sophie kamaruddin. welcome to daybreak asia.stories this monday, anger and iran as u.s. sanctions return. that riyal has helped in value -- halved in value this year. terrorists will mean most top names will not be -- tariffs

for more let's bring in shery ahn. what are the concessions and are they enough? your answer is no. it does not seem to be enough. the concessions we are hearing about is that it is a rehash of previous commitments they have made. be last time there seemed to a deal was last may and that was about china buying more energy and agricultural goods. now we hear something similar. it could be raising equity caps on foreign investment and so comes tot when it trading with the trump, it is not about the trade deficit, but they do want to see more structural reforms. romaine: two people in china and asia pay as much attention to the day-to-day of this than we do here? shery: not so much about the day-to-day rhetoric coming from the trump administration because that's really hard to keep track, even for us who are doing the news. about the we heard sources telling us about the list of concessions, secretary ross coming out saying these are u.s. isparatory and the still going to go ahead and put 25% of tariffs in january up from the level right now. the g20 meeting, that wi

we have shery ahn. even though we saw some reprieve yesterday in terms of asian market trading, it is likely to go lower, isn't it? sherry: we have seen the asian stock struggling, and in the last session it was muted. though, now that we see a selloff we are expected to feel the impact as we do every time we see a selloff in the u.s. of course, we also had a news from the pboc yesterday on the monetary policy report, for the first time not talking about the importance of a market dynamic when it comes to the chinese yuan. so investors took that as control on capital outflows, tighter control on the chinese yuan, despite the fact a few days ago we had heard from goldman sachs that they would not intervene that much and would let the yuan get past the seven level, the psychologically important seven level. scarlet: it we also had apple suppliers last week, the reports out of asia that apple suppliers are seeing fewer orders for the apple phones. and the same kind of story today. this will continue to put

i'm shery ahn. haidi: i am haidi stroud-watts.ang up $31 billion in sales for the annual singles' day extravaganza, fitting a new record as shoppers swarmed to the online bazaar. more huge numbers. takeaways? key given a lot of analysts say there are a lot of variables in this one day shopping bonanza? tom: absolutely. we should be reading -- should not be reading too much into these numbers, but it is worth going through the topline data that came out of this massive shopping event. you talked about $31 billion sales number compared to $24.2 billion last year. the number of brands, 100 80 thousand brands, many international companies as well, 75 different countries. in the first two minutes alone they notched up sales of more than $1 billion u.s., and some of the companies benefited by tying themselves into this shopping festival including apple, xiaomi, which is a they notched up sales of $700 million event. this there were 230 other brands that notched up $14 million each. the numbers on the surface are astounding, but you are

shery: i'm shery ahn. when it comes to u.s.anks, lending risk, it doesn't get much bigger than ge. the five biggest wall street firms have each committed to lending at least 3.5 billion dollars to the industrial giant facing growing debt concerns. morgan stanley ceo james gorman is not concerned. the markets over were raped. ge is a fantastic institution, they have tremendous ability to restructure the assets there appeared a off the business. i'm not concerned about ge's credit at all. it is a world-class company. they are going through a tough time and they have a leader doing something about it. >> even if they end up drying trend on the credit facility, they are still good. >> absolutely. this is ge, one of the great institutions in the world. shery: let's bring in lisa abramowicz. this would be a crucial backstop. we saw when andrew danone it's in credit line. general electric has a $41 billion credit line with the number of different banks. we don't know all of them but the fear expressed in the story today is what happen

. >> i'm shery ahn. >> welcome to daybreak asia. our top story, asia-pacific markets look to extend the rally in new york. watch out for chipmakers. theresa may bowing to fight on as brexit hardliners have a vote of no-confidence. wilbur ross is the u.s. still plans to slept tariffs on china matter what happens. despite the comments, we saw more optimism that trade tensions could be easing between the u.s. and china. here's a look at the markets. just the fact that china and the sending theking, tech shares higher. the trade related sectors like industrials also higher. the s&p seeing the best day in a week. the dow gained as well. the nasdaq gained 1.7%. s&p futures at the moment slightly down but they were higher at the open. fluctuation area it all of that will play into what happens in asia. >> as we start off, the cash trade in signal -- sydney we are seeing gains. there are potential pitfalls ahead. brexit fears. we have korean media reporting that they tested a new tactical weapon. we are also watching japanese toolmakers. wa

i'm shery ahn. sophie: i am sophie covered in hong kong. to "bloomberg daybreak: haidi: our top story, asia-pacific markets are upset by the dollars plunge. falling from 18 month high.

shery: i am shery ahn. sophie: i'm sophie kamaruddin. welcome to daybreak asia.ories, backing for brexit, theresa may claims cabinet support but leading eurosceptics warned they will vote against it. the e.u. says the situation has changed. northern ireland will remain in the customs union.

shery: i'm shery ahn in new york. sophie: i am sophie kamaruddin in hong kong.ng down to the open. ♪ here are the top story spirit u.s. stocks extending a rebound from a rough october. apple is the loser in middle day training. -- trading. it's a just weaker demand for the iphones. presidt

. >> i'm shery ahn. >> welcome to daybreak asia.asia-pacific markets look to extend the rally in new york. watch out for chipmakers. theresa may bowing to fight on as bre

. ♪ ♪ >> from bloomberg's world headquarters in new york, i'm shery ahn.lcome to balance of power, where the worlds of politics meets the world of business. an exclusive interview with the morgan stanley ceo james gorman. first, we want to get to the markets, which have seen a wild day so far. we seem to be recovering much of today's losses. >> that is right. we're looking at the selloff in u.s. equities using now. we're still looking at major asset -- averages in the red. down 1.4%. lost six points. slipped below it slows. the nasdaq again would see a better recovery. we take a look at the nasdaq 100, an intraday chart through the whole day. we see how it is coming back. we're

shery: i am shery ahn. sophie: and i am sophie kamaruddin.reak: asia." >> our top story this wednesday, asia-pacific stocks set to extend the selloff as sliding oil and we contact add to the gloom. apple suppliers face another tough day ahead.

shery: this is "bloomberg markets," i'm shery ahn.hares tanking again after the new ceo tells ceo -- cnbc that they will fall short of their target this year. joining us to tell us why ge is in one of its deepest slumps in its 126 year history is our bloomberg opinion columnist, brooke sutherland. what exactly did the ceo say that was so bad that it led to this? brooke: it's more what he didn't say. one of the biggest frustrations from a couple of weeks ago was the utter lack of detail. decisive on some things, ruling out equity, giving up on some specific parts of the plan and in other ways not having answers for the fundamental questions around his company, including the church a prefer the power to turn that around, how credible are the ge numbers and how will it reduce the mountain of leverage against the company? and today we didn't have any answers to that. this chart on the bloomberg showing revenues continuing to slow. this huge chunk of the division is really in terrible condition. anything that we could engage from his comme

shery: i'm shery ahn. environmental line. erlichman in for amanda lang. shery: president trump is threatening to curb exports and that could threaten relationships between china. i have to say, despite the fact that we are seeing some retailers missing expectations, we have had a few good earnings beating estimates the likes of kohl's or best buy. this is it, after the shopping holiday season, this will be key earnings growth and there's no more to be thankful about. jon: that's one way of putting it. and obviously in the case of target, it comes after a big run-up. we know during this recent selloff come investors are taking profits on highflying names and the case of target, before the selling pressure inan we have seen a 60% move the shares of the last 12 months and expectations are pretty high for the company to deliver with this quarter. high toxpectations very the broader markets as well, given how well the run-up has come until now. take a look with the broader markets are doing because we are now s

shery: i'm shery ahn in new york. down to asia's major market open. ♪ haidi: please other top stories we are covering in the next hour. oil will be in the stock -- in the spotlight. saudi arabia is reducing exports starting next month. alibaba delivers a shopping sensation. sticky -- seeing a record $31 billion of sales in 24 hours.

shery ahn, let's talk about the stock. will it recover with these results? ause we saw in the last session falling and it was before tencent earnings came out. given we are seen so many other tech names like alibaba and baidu miss estimates, we're not too confident on what could be coming up. we already saw tencent lose billions of dollars of market value. if you take a look at the chart isthe gtv library, the stock at the cheapest level in five years. given theee a bump valuation right now. arever, some analysts saying if you go below the headline numbers, you have to figure out the gaming business is still under a lot of stress. romaine: i'm looking at the chart on the screen about gross margins. i thought the companies did well in terms of the revenue, but margins are still being squeezed. shery: the lowest on record. around 44%. that's going really down. they have been trying to diversify away from the mobile and online gaming industry that is under pressure because of authorities not processing or giving licenses to new games. they have been trying to di

let's bring in shery ahn to break it down. that weis is better the are talking the not talking. g20 will mean something and agreements will be set? shery: that is the biggest question for all market investors. anyone watching china and the u.s. -- given the fact that last friday we heard from peter navarro saying no one but president trump and the ambassador to negotiate with beijing puts a little bit of question and out over who really is leading the negotiations coming from the trump administration. romaine: was this the same type of confusion is the last time? shery: secretary mnuchin and ross both had a deal but since president trump put a stop to china saying they want to buy more energy and agricultural goods to stop those u.s. tariffs, really nothing much has happened. caroline: you are educating the earlier to the role navarro has made. shery: he is the hawk. i think he really portrays that when he is dealing with china. he is like the china hawk. he was warning wall street bankers last week about not putting too much open on these trade negotiations and investors to not

i'm shery ahn in new york. i'm all allen in the. are watching daybreak asia. >> president trump calling for a new spirit of bipartisan politics after the democrats won control of the house. he also warned of a warlike posture if his opponents use their positions to launch new investigations into his administration. he unexpectedly reversed his antagonism toward nancy pelosi saying that she should be speaker again. >> ultimately we can all work together next year to continue delivering for the american on economicding growth, infrastructure, trade, prescription drugs. these are some things the democrats do want to work on. >> it is about what you can do. what you have done in the past 60 your credentials but it is about what you can do and i think i am the best to go negotiate.unify, to resignedessions has after months of what has criticism. his departure focus is a spotlight on the russian investigation into his decision to step away from it. he will be temporarily succeeded by matt whitaker. he is a credit of the mueller inquiry an

. ♪ sheri: live from new york, i'm shery ahn. amanda: welcome to bloomberg markets.ere are the top stories. straightr a fifth decline, with apple leading the drop in tech shares. brexit confusion. theresa may expected to speak as she tries to convince her to senior ministers to sign up for a brexit deal with the eu. green companies in the red. will recap earnings this half hour. one headline that actually moved the market and sent tech stocks down was the fact that this key democrat came out and said the nafta 2.0 deal would be dead on arrival if president trump did not renegotiate the deal. headline hit nafta on the canadian dollar and the mexican peso, although they seem to be stabilizing at this moment. amanda: more insurgency. what we don't know is -- more uncertainty. what we don't know is what is expected. the democrats may favor terms that the canadians wanted in the first place, things like labor and the environment. so maybe weeks the canada will -- tweaks that canada will be happy to see. but we don't know. markets as we know don't like that at all. took at

i'm shery ahn. sophie: i am sophie covered in hong kong. welcome to "bloomberg daybreak: haidi: our top story, asia-pacific markets are upset by the dollars plunge. falling from 18 month high. west texas suffered multiyear declines as opec warns demand for its crude may slide more than expected next year. glimmernvestors see a of hope as investors confirm the white house is talking to china on all levels. for the news on potential easing of tensions between u.s. and china, helping optimism in the u.s., but not enough, given prices plunged. let's see how things are looking in asia. sophie is here. a three-dayr decline, asia stocks looking mixed in the wake of a choppy u.s. session. we have the nikkei and topix gaining while the yen is selling steady at 113 against the dollar. this despite the gdp report we got, showing the worst case of economic growth in 2014 -- since 2014. assessors will be looking at the impact of natural disasters and trade tensions. data,t comes to eco chinese sales and factory data will be the key data point to watch a

shery: i'm shery ahn. amanda: i'm amanda lang. welcome to bloomberg markets. op stories from around the world. battling brussels. italy plays tough negotiations budget asu over its the u.k. makes progress on brexit. shery: trade talks back on as the u.s. and china resume contact. b. apple's plan how the tech giant plans to thrive in a world where iphone demand is on the wane. we are seeing u.s. stocks gaining ground on hopes that there could be some progress on china u.s. trade tensions. gainingseen the s&p 500 a quarter percent with the usual suspects on trade also gaining ground on the news. fall .1%eing the dow on the news of that 737 crash in indonesia. you have the energy sector pulling down the s&p 500 as we are seeing wti now losing ground for a record 12th session and of course now that oversold territory below 30 on that 14 day rsi. one stock we are keeping an eye on, ge. after falling 6% in the last session as its ceo was unable to cross concerns -- squash concerns on their debt. cds justeing five-year surge more than 200 points. in fact the guggenhei

we have shery ahn with us and luke -- is this a win for the markets?in for the polls and wall street. we kind of song early in the night -- saw early in the night, the risky assets all turned on a dime. but the second democrats taking the house came with a clear focus, we have seen the consensus trade develop in that people thought we would get a relief rally in matter what after the election, as stocks stay positive, but is also a dollar moment with the dollar turning down and staying down. so it is kind of like those very distinct, very subtle consensus elements creeping into play in a way they were not earlier in the trading session. joe: it is the middle of the night here, but in asia it is prime of the trading day, so how are they -- how are the investors digesting what we have seen? green. it has all turned the housing composite was down, now they are gaining ground. and they are rising to their highest level in two weeks. japan's nikkei is up, despite the fact that the yen is a stronger with a weaker u.s. dollar. b advertise level in two weeksut