best very open to fintech.erestingly, i saw this as a board member before i became chief executive, there has been a really important mindset change, but when you can and cannot do. to be some truth to it, but we do not have a royal as regulator to enable change. best we do have a rule as regulators to enable change, and we are enabling it. we're having to answer the question because our local book -- our rulebook was designed in a different age, sometimes against the way in ways that we should look at. has taken a big lead and i am very proud of what they have done globally to react best globally. we have strong alliances now with other parts of the world, singapore, hong kong are two examples of countries that followed strongly. i really hope that we will have this in relationship with the eu. i do not see it as a race to see who has got more fintech, one thing about fintech is it is pretty borderless. that rules for another time, you made reference to that. when you look at things like cryptocurrency, contra

fintech is the catalyst or timeline for a new baking world -- banking world. of details and a blockchain technology, what i observed is there is a group called fintech and another group people who come from the technology and say i have a machine and am looking for a problem, and people who are coming from a problem and say i need a diplomacy. they need to meet. their language must be coordinated. and the regulatory framework that may be approaching the dealing with the entire fintech thing is critical. they will fall in order to make progress, for each to understand it is not a technology that is supposed to crowd out somebody else but rather how to improve the functioning of the financial system with the technology. it will allow the banks and the technology to cooperate, the regulators to cooperate, and explanations to be there. i am not afraid of progress, but i need to address it properly. francine: jacob, speaking of --ch, what do you see as what is bitcoin? is it a currency? 6000. gone to almost is it something we should look at? jacob: it is a phenomen

before entering fintech, he founded paypal.erview with him, i asked about the trends he is seeing in the lending arena now. take a listen. max: i think we are just about to enter the consolidation phase where companies good at managing risk, smart at reserving, setting up for long-term success will pick up stragglers who don't have capital or management teams, are not ready to take on risk management demands and regulatory demands. emily: what do you see happening when it comes to predatory lending for example? max: i think the promise of fintech, what we have all come here to do is get rid of predatory lending. it is to shine a spotlight on what is the right way and wrong way of doing this, to bring more active credit to those pushed out by the players into the pawn shopshes of the and payday lenders. i think the opportunity is still there. we are all working on it very hard. the dent has been made, but it is small. a lot of people have no access to credit. emily: talk about the newest ,evelopment at a firm -- affirm and i you

so what we can do right now, try is try to is our goal become the biggest fintech for ethnic chinese.nd u.s. stock. we plan to provide options, interests on foreign exchange to encourage more plans to try to move us and try out our business. stephen: are you encouraged or discouraged by the level of reform in hong kong in this sector? >> i think more encouraged, not discouraged. toause people have [indiscernible] stephen: thank you so much. threw two securities into -- futu securities international. we will talk about the affordable housing initiative in the next hour. yvonne: thank you so much to both of them. you can get a roundup of the stories you need to know to get your day going in this edition of daybreak. go to dayb on your terminal. it is also on your mobile and the anywhere app. you can customize settings only get news on industries that you care about. make sure to check it out at dayb . this is bloomberg. ♪ ♪ betty: this is daybreak asia. betty: a quick check of the business flash headlines at this hour. hyundai has launched an offensive to fight apathy in the u.

matt: what is the most important inelopment in contact -- fintech?n: there is not one really important development. they are not going to replace the banks. mobile i would say is the biggest change in the last four or five years. mobile banking has become very important and we are proud to say and metro bank week won an award for best mobile banking app in britain. it is about delivering the customer experience in store, online, mobile, atm, whatever delivery channel the customer wants. guy: when it comes to mortgage lending, there is a price war that is vicious. people are switching out of variables because they cannot make money in that space. how is this one going to work out? you are going to look at the comparison website to look at the numbers you can get quoted on the cost of money. sterling is good -- cost of money. going down and down. vernon: i agree, the rates are very low in the markets very competitive. -- very low and the markets very competitive. bottom come down and incrementally grow up? vernon: if we could predict rates -- guy: we w

. >> are you getting into fintech at all jpmorgan chase just yesterday bought this company called we pay that does electronic payments first time they've gotten into that category in that regard do you see a future for that for you guys >> i do, bill. we -- we were one of the first, maybe the first, about a year and a half ago, we put one of our executive management members as our chief digital officer he has been looking extensively for fintech opportunities to either acquire those companies or partner with those companies that we're looking at a couple right now. we think that's a very logical thing for us to do because while there are some challenges with the fintechs, one of the real benefits of fintechs is they created new very effective ways to interface with the clients on a much more quicker basis. and so we want to learn from that so we're definitely looking at it >> kelly, we also saw fed chair janet yellen leaving a meeting with the president not terribly long ago she's one of the finalists you mentioned that you're predicating this mortgage move on higher interest rates d

it is life-size is, it is fintech, education companies come in china right now, it is e-commerce.s and fintech companies toward the road of ipo-ing in the u.s., currently. >> we are seeing the hong kong exchanges, a lot of exchanges are forging closer ties. do you think that is a threat for chinese startups in particular that they choose to list in hong kong versus in new york? >> know, we think that the strong companies will have global aspirations will choose to list in the u.s., and we certainly that to continue to list on nasdaq. what is interesting is that when you're talking about the hong kong stock exchange, and the number exchange in the region -- the number of exchanges in the region, nasdaq is a technology provider to a lot of exchanges. singapore stock exchange, the hong kong derivatives exchange, asx, we are actually a technology partner for those exchanges so at our core, china -- nasdaq is truly a company that performs in exchanges globally. >> we saw you wave in -- two years ago we saw a wave of chinese firms deal easting and the u.s. and relisting in china. has th

of who has fintech and who doesn't. it is borderless.ra: when you look at things like cryptocurrency and contracts, do you see any need to regulate around initial coin offerings and contracts? andrew: we put out a warning on initial coin offerings and that was a consumer warning. it said it said, you could lose all your money. it was blunt. cryptocurrencies, i think it is something that i have to say,, how does that work? nejra: that was andrew bailey, head of the financial conduct authority. up next, reshaping the research relationship. we talk about the buy side. the complex issue of valuing research. this is bloomberg. ♪ ♪ >> it will be challenging. it will be rocky. meaning, there are contrasting forces. the first force is, if i need to unbundle and pay separately, i will start saying, i i don't want to pay for this or i will pay less for this. >> that is what every client should do. >> going in the opposite direction is, before because of strong relationship and bundling, i was buying a service from operator a, which is actually not

max: i think the promise of fintech, what we have all come here to do is get rid of predatory lendingto shine a spotlight on what is the wrong way of doing this, bringing more acts of into the darker reaches of the pawn shop's. i think the opportunity is still there. we are all working on it very hard. the dense has been made, but it is small. , but it is been made small. a lot of people have no access to credit. emily: talk about the newest development and how you are trying to combat these trends. so we have been scaling steadily over the last five or six years we have been around. we are very focused on this idea of honest finance, delivering a low-end product to a consumer, tailored to the purchase they are trying to make with transparent pricing, something we can commit to that will not change. no hidden fees or interest rate changes, things that hurt consumers and give the industry a bad name, deservedly anyway. we have been working on that for a long time, and we have picked up a lot. we have been hovering well north of 80, which traditional banks have a negative score. it is i

. >> i can't explain what japan is doing, except maybe trying to become the switzerland of the fintechndustry, and get money laundering from all over the world going through japan. at the end of the day they can't allow anonymous transactions to dominate the global economy. they can't collect taxes, they can't enforce regulations. it will remain at periphery. you won't easily be able to use it broadly in the economy. that limits it i think early on they have been allowing it to foster. they want to get the innovation, but now they're pulling back >> so you wrote a book about the death of cash. how does this fit in with your forward looking view are you talking about the price of bitcoin while there's some promise in the underlying technology? christine lagarde was saying for some developing countries this could be a cashless solution >> the last third of my book is about bitcoin, the blockchain and what it offers for security is important the problem is that there's regulation, there's potential competition. it's a difference between the blockchain a good idea or is bitcoin going to ow

hsbc closed over 300 branches in the uk in the last five years but invested heavily in fintech, their technology hub is here at the blue fin building in london. >> you came from google to hsbc, an old established bank around since 1865 do you think you brought with you some of that tech new age spirit >> i hope so we certainly got about 1,000 jobs now in hsbc, of jobs that didn't exist, the title didn't exist here we have solution architects, who weren't there. we have optimization experts at the front end. certainly i hope i brought some of that. ♪ it's interesting to hear about the startup of hsbc, a bank that's been around 150 years the customers at the heart of the new services and futures, but the business itself is evolving with new processes, new kinds of jobs. the culture at big banks is changing and they've had to change due to the impact new innovation companies are having on the finance industry one of these new disruptor companies is transfer wise their headquarters are in london a short walk from the financial district they offer borderless banking, a single account for c

first fda approved smart pump we have flex, menstrual disk we have quite a few marketplaces i see fintech, crypto currency so we're all across the board and i don't think people should pigeonhole women into fashion and beauty that said, those are multi-billion dollar markets, so why wouldn't you invest in those. you look at l'oreal is buying up things left and right. i think there's a lot of opportunity there. so we're all across the board. we have a really, really diverse portfolio, and we do do light software but pretty much focused on consumer technology. >> jesse, i don't mean to bring your dad's name up, but he's so well-known, i wondered if he had some thoughts on the female strategy >> well, he loves women and he has supported them i have to say if you look at the dfj and draper associates portfolios in comparison to a lot of the sandhill road guys, who i also love, they have almost 40% female founded companies. so that's really enormous. i think that's -- he's always been incredibly supportive of women. i am a fourth generation investor and the first female so you can see why i'm

eclipsing twitter, we looked at a chart versus square versus s&p remarkable to see what it's done in fintechce a lot of viewers wonder if you think it would behoove jack to pick a side. either do with the one that remains challenged or go with the one that's got a big tail wind. >> i'm not usually loathe to tell jack what to do, i'm always loathe to tell jack what to do look, i think he's doing -- he's doing a great job. he's present at both companies he's got an incredible ability to sort of compartmentalize. when we talked about twitter all the years i was there and he was on the board and adviser to me, we would only talk about square if i brought it up it wouldn't otherwise come up. i think both his leadership teams, you respect him and admire him i'll tell you, you know, for years people were sort of shaking their heads about square and how is this ever going to work it's a testament to his persistence and resilience that it's doing as well as it's doing. >> dick, we always appreciate your candor. good to have you back. it's been a few weeks. hope to talk to you soon. >> great thanks fo

researchers will work on ai, quantum computing and fintech. >>> shares of kobe steel falling nearly 18%pan. a unit of the company was found to be falsifying data. kobe steel admitted it false records to show aluminum and copper products met customer specifications down 18% didn't stop the nikkei crossing over the pre-asian financial crisis high, a why not seen since december 1996. >>> shares of china's great wall motor rising 15% in hong kong. reuters reporting bmw is exploring a joint venture with the company and may open an assembly plant in eastern china. >>> philips will suspend manufacturing some defibrillators in the u.s. following criticism from regulators the company says it will continue making others under heightened scrutiny. philips expects to take a $23 million hit to earnings as a result >>> shares of barracuda slumping the cloud computing company's earnings matched forecast but the guidance was weak. shares of that are coming for you in a moment. in the meantime, shares of micron are under pressure. the company announcing plans for a $1 billion share offering in order to

alibaba, spending some $15 billion on r&d centers overseas they will be working on cloud computing, ai, fintech do you have to have deep pockets to make an impactin that space >> not necessarily looking at ai, we should see this as a power of the future. soon we won't be talking about ai, it will be what powers lots of companies, it's underlying t will make them smarter, more intelligent. that's where companies want to go some companies will be powering large things with ai, other companies will be powering smaller processes. not necessarily. >> arjun, thank you very much for that >>> shares in new york stock exchange listed cloud company pure storage lost 4% of their value since the company floated back in 2015, however the stock has posted solid gains this year up by 25% over the last three months that's after it announced plans to expand into the field of artificial intelligence. joining us now is scott deetson, the chairman of pure storage some would say your stock is speculative, what do you say to investors about where the company is going >> the business continues to grow profoundly quic

what do you think about new regulation and you think it will fintech growh -- and compete with otherks? mike: i think they're trying to create as much competition generally. opening up access to accounts is an interesting way to do that. to payre issues you have 50 two. security of data and so forth. in principle, competition is good. anna: do you see the retail banks trying to resist this anyway? they got the value. mike: data has a huge value. big big that has an even bigger value. it subject to a lot of questions about privacy. the insurance that you have a lot of the right controls, defenses, and can ensure that copies of data is retained confidentially. anna: thank you very much. .ichael drake stays with us if you are a bloomberg customer and you are watching the tv channel on a realogy the, you might want to move to tv . the the video stream but also the charts and functions we're using. you can influence the conversation by asking the guests the question. votes in a satellite on sunday with many seeing the vote is a safe bet for shinzo abe. says hisa new poll coalition wil

whether it is continuing regulation, regulation in the united states, or competition from fintech to elsewhere -- do you see are the biggest risks to your outlook on financials? bashkar: a downturn in the economy is possible. anything that changes the course of economic growth in the united states. it would pose a risk to banks. gone,e that regulation is but at the end of that environment, maybe we might see some of these regulations being taken off. betty: stay with us. a lot more ahead we want to talk about. this is bloomberg. ♪ betty: this is "daybreak: asia." let us get a quick check of the latest business flash headlines. buffett is acquiring 30.6% of the flying j truck stop chain. it plans to become its biggest shareholder within six years. >> uber place to sign up female , takingin saudi arabia advantage of the king's decision to allow women to behind the wheel. ban fear the repeal of the may cause a drop in demand for ridesharing apps. fidelity international is planning to cut management fees. are trying to stem the flow of money to cheaper, passive products. they will introd

kathleen: blackrock in discussion to invest in a fintech company to help retail investors. blackrock made strategic investments in recent years, with the aim to eventually acquire some. they are investing technology to diversify revenue. the reserve bank of india pretty much did as expected. it held its key rate steady. it is caught square in the middle between inflation that has jumped up for a while, food prices are starting to fall back down by the end of the year. it is tough because growth is slowing. it is interesting, governor patel expressing concern of the loss of growth in early 2017, noting the gst's rendering short-term prospect uncertainty and may be delaying the revival of investment activities. a lot of caution, but hopes a rate cut will be coming. thene: it certainly is dynamic between the upswing in inflation and the slowdown in growth. they were expecting a v-shaped recovery after this. not the case, at least they have admitted that. we have brought back bob eisenbeis. thanks for staying with us a mid these technical issues. bring it back to puerto rico re

. >>> the money 2020 conference kicking off in las vegas this week where top names in the fintech andace are all gathering. one of the top ideas this year, of course, targeting millennials. chase unveiling its thin by chase app. the app allows users to open a bank account, make deposits and set up savings plans right on their phones finn is available for ios users today in st. louis and rolls out to other cities and android users next year. >>> intuit, maker of turbo tax, launching an app called turbo which connects the tools users can track income, credit score, debt to income ratio, to help them better understand and manage finances plus turbo provides advice on how to improve credit scores and how to qualify and secure a loan at the best possible rate the app will be available in january just in time for the next tax season. don't we look forward to that? >>> our own deirdre bosa is at money 2020 right now with even more news starting in november, amazon users can order takeout from local restaurants directly from the amazon app. it's all about apps. deirdre is joined exclusively b

researchers will work on ai, quantum computing and fintech. >>> shares of kobe steel falling again today. a unit of the company was found to be falsifying data. kobe steel eventually admitted that it falsified records to show aluminum and copper products met customer specifications that stock is down more than 30% just this week alone down 17%, almost 18% in the premarket today. >>> shares of china's great wall motor rising 15% in hong kong. reuters reporting bmw is exploring a joint venture with the company and may open an assembly plant in eastern china. >>> let's get back to the broader markets. joining us is jeff knight, global head of investment solutions and co-head of global asset allocation at columbia thread needle investment which has 4$473 billion under management and chris cordero from regent atlantic i see there's a lot of financial institutions, talking about in the media that need to churn out a lot of information the latest sti efest stuff is ts crazy. we have not seen a stock market run like this in years and years. some of them say it's overheated others seem to think t