buy.have upgraded tcb to icbc is the topic among chinese banks.is a look at what is moving markets in china after the long week break we have seen. thank you, the latest on the market. china's return after golden week. rallying at the central bank's decision to cut the lenders reserve ratio. the people's bank of china said it will cut reserve requirements. in 2018.banks what are the indications? we have the banks playing catch-up this time. >> that is right. certainly the compass it playing catch-up the shares in hong kong. this announcement was made september 3. it will not take hold until 2018. the vast majority of china's banks, certainly all of the major ones and that is why you are seeing the shanghai following the pen saying. encourage these unders for more credits to small businesses. they provide the bulk of tax revenue and employment. up until this point it is the essay we. that is trying to rebalance that approach. as 150d funnel as much billion u.s. dollars liquidity into the system. we did hear from analysts saying this was surgical ea

athaad: let's take a look icbc, china banks. names seeinge big these earnings come in.are doing all right. than last quarter. i want to argue, a really slow recovery. that will continue to drag the recovery in 2018. haidi: a lot of the optimism on better asset quality, looks like bad debt starting to get contained. do we have to look at what is not on their books? that has been the case with bad loans with chinese lender's. >> talk about the banking sectors, asset quality. we also see a slower bad loan information. if you talk about the whole i believesystem, there are a few hidden risks. the government has been serving a lot of -- curbing a lot of the lending and malpractice. haidi: interest margins, are they actually getting better? the key risk is the ramifications of the currently leveraging assets. will there be any lagging affect of the tightening in china? haidi: thank you so much for that. taking a look at china's big banks. the market is a little underwhelmed in the early part of the session. from a formerring boj board member. this is bloomberg. ♪ haidi: the b

we saw the big rally coming through in thinking players like icbc. -- banking players like icbc.across the source of the session and we have data like pmi numbers and foreign reserves to come in and $3.1 trillion. betty: thank you so much, juliette saly on the market. hurricanes, we saw the story that u.s. payroll report is pretty much all but impossible to decipher what the numbers really mean or the economy. the fed, or stopped the expectation the fed will raise rates in december. kathleen hays joining us now. we saw the decline in job creation, but the wage gain was noticeable. kathleen: it was, particularly since the fed is focused on wages and boosting inflation. we are going to run through this. key component by key component, starting with don farm payroll, they fell for the first time since 2010. we'll get 1972. you see the -- look at 1970. . it was forecasted 80,000, last month was 156. it was negative for the first time, you can't even see it. that is one aspect. that was even weaker than people forecasted, even if it is because of the hurricane. there was also unemploy

what this does is it shows us the last time icbc had such a huge move.sday. back in 2011, this is the start of an easing cycle. i think at the moment, analysts are less optimistic about the situation today, relative to where we were a few good use ago. they are convinced we are seeing more of an easier environment for credit, and an environment where the authorities are prepared to stimulate the financial sector more. despite this good run-up this week, when hong kong closed today, i think if the markets get going again tomorrow, those bankshares will be closely watched to see if we can continue that rally. kathleen: thank you, adam haigh joining us from sydney. reide: -- kathleen: hoffman sees huge potential in the future of artificial intelligence. speaking at the "vanity fair" fears distract from how ai can really help humanity. >> you have thousands of people working on this project, a gives you a very broad scope of potential whistleblowers, people that if they see something wrong, can speak up. be intentional about, what is the thing that best help

icbc leads gains after their result. it is a mixed picture for chinese automakers.ll motor earlier much as 6.5% after missing estimates. it is a missing -- it is a different story for another auto. that prompted morgan stanley to boost its price target by 76%. that is a market snapshot as we had to midday in hong kong this friday. this is bloomberg. ♪ emily: this is "bloomberg technology." i am emily chang. shares of twitter gained the most in more than a year after adding more users and better-than-expected revenue in the fourth quarter. industry watchers caution that more consistent performances needed if twitter can sustain user growth. but as one user put it, the bleeding has stopped. but here to break down twitter's selena wang, with -- has the bleeding stopped, is that your assessment? >> they have managed that, cautious optimism. emily: that said, twitter has been miscalculating -- miscounting users for years. they only increase total users by 2 million because 2 million of their users were not actually using it. selena: what is shocking is they are only now

the largest lender icbc out with earnings later. researchers managing director who says he will be watching very keenly for household debt. debt in general is something of sure you're looking at. >> yes. the issue as we know is there has been a huge amount of lending towards the consumer sector. xi jinping's deleveraging campaign will take it off the banks and corporate's and stick it on the consumers. high, butis not that consumers are unaware how dangerous some of the loans are they are making them. it depends on where the money is going. goes into a dodgy property developer, if the developer goes belly up, who get stuck with the loan? of pressure on short-term interbank flows partly because the cbrc is cracking down. means the winners are increasingly winning, which is the state thanks, and the private banks are losing. they are is while cracking down on risks, they are piling on dodgy debt on state banks. bad debt into equity and that makes bed equity? >> exactly. there are investment products going on the state bank balance she

icbc bank is now in 60 countries. if you go back 30, 40 years ago, it was in one.hinese companies are going abroad, which, i think, is very smart. the chinese are quite smart dealing with their situation. their banks are banking abroad, they want their banks to be winners. they wanna have the jpmorgan chase of-- the next one. and-- and i don't want them to have it. i think we should have it. you know. and they could buy us one day. so, you know, we gotta be very careful when we talk about american business, what we want for american business, and how important it is for the success of america. and not just us. but i'd put-- a lot of these companies are in the same boat. you know, ge and caterpillar and-- and we gotta compete. and we gotta compete. with some very large, tough competitors. globally. so you've been now running a bank for-- ceo, bank one and jpmorgan, for about 16 years. so, what's the greatest pleasure of doing this, running a bank? this is my contribution to making it a better world, is running a good jpmorgan chase. i tell people if i don't do a goo

week, given that the msci china index was up more than 4% even what we saw with the chinese banks, icbcosting the biggest when your gains. -- one-year gains. they are all saying strong take up -- tick up in shares. that was tied to the pboc's moves. this requirement cut. it won't kick in until 2018 but is seen by some analysts as injecting up to $150 billion with a liquidity into the system. that will be seen as supportive for bank profits. will be interesting to see how the banks listed here in the shanghai composite perform when the market opens later this morning. history, the, just timing, october is a pretty good month to return historically. esther, the shanghai composite that the about 1.5% on the back of the golden week holiday and of even higher in 2015. those are some of the positive. there are some cautions, don't expect a great deal of volatility eating up to this political event on october 18 and also putting up the yuan has weakened so much -- somewhat. watch the insurance and banks, that is what analysts are telling us. we're expecting foreign-exchange reserves, also the

icbc jumped the most in nearly two years.che bank's ceo has yet to meet with his company's largest investor, but he has decided to do so. john cryan will sit down with hn a. meetingeen avoiding since march. two previous attempts for talks failed. john flint has been elected to ceo. the london based bank approved the appointment after the arrival of mark tucker last week. michael hickey is leaving at the end of this month after almost three decades at the company. the botched response has an latest customers, regulars, and politicians. that is the bloomberg business flash. francine: let's turn to the u.s. where a senior republican senator has had president trump's reckless words to other countries could set the nation on the path to world war iii. , -- bob corker says the president treats his office like a reality show. they traded insults over the weekend. he will be critical for trump tax reform plan. let's get more on this with stephanie baker. feud broke out when corker decided not to seek reelection. what does that mean?

the banks are required to keep, so look at that, 5, 7, 5% there, the big guys out there, including icbcation still the story here in the u.s look at the sectors here, materials on the upside. industrials now flat banks were up right at the open. negative energy had a fabulous month, but struggled the last two days as oil moved down a little bit. utilities a very poor performer because yields have been moving up that's part of the whole reflation trade. let me get in autos quick. hope you were listening to phil lebeau talking about gm talking about better than expected gm, gm has gone parabollic, $35 a month ago, gm, $35 a month ago. that's a new high for gm they went public in 2010 43 is a new high upgraded at bank of america, merrill lynch, ford also better numbers and highest levels since march for ford but it is this reflation trade that the market has been talking about. for weeks now. it is still going. reflation is about firming inflation, somewhat firming inflation, central banks being more hawkish, tax cuts, but the effect on the market is broadening breadth and rallying very se