we have bloomberg -- my cohost and jodi gamal el-din, schneider. does the decision to send pompeo innal much more of a crisis terms of where we are jodi: yes, it -- where we are? jodi: yes, it does. now, the decision to send the secretary of eight himself to saudi and -- of state himself to saudi arabia shows that the situation has intensified. president trump himself is in a complicated situation. saudi arabia is his most important ally in the middle east in terms of the relationship that he has. it has really been the cornerstone of the relationship -- his relationship in the middle east. he has made clear that he wants to try to continue that relationship if he can. a reallyis really important moment for not only the trump administration, but for the president himself, and that is why he is ending his equity area of state. -- secretary of state. he is also giving us a bit of a mixed message, saying it could have been the rogue killer, a flat denial from the king. but then we are also hearing the u.s., he is sending out members of his administrati

yvonne: jodi schneider is joining us with the story right now. tell us the latest on the plan. looks like the saga could continue longer. jodi: theresa may is weighing the plan to stay in the union along the 21-month transition period because of the impasse. they are still stuck on the issue of the irish border. she went to brussels without a deal in hand. she said she was willing to consider some different options move this forward. the eu ministers there basically said we are calling off the smith november summit -- this mid-no summer -- mid-november summit. now she is going back trying to find some way to deal with this. even if this plan is put into place, it doesn't solve the issue of the irish border, but essentially prolongs the debate. we will see whether this will work, but she is apparently willing to consider this to get something moving forward. rishaad: what is the feeling out there? will it get things moving perhaps -- if you look at eu negotiators in the past, and they have a bit of previous on this certainly, they like to leave everything until the last minute a

rishaad: jodi schneider is here with a look at what the administration is saying now. very things are being thrown into the works. jodi: president trump is toughening his language somewhat. it is kind of an evolving language. he is now saying that what happened to mr. khashoggi was foolish and stupid, and he is also saying that yet, it appears to have been something that went awry. for moreting information. he is saying there is a very talented individual who is doing an investigation. he is waiting to hear more of that the for he reacts further. he is still not making any comments about what kind of punishment, sanctions, or anything that he may be willing to consider for saudi arabia, given the death of mr. khashoggi . even though he is getting a great deal of pressure from capitol hill. yvonne: pressure from turkey as well. we have heard from president are to one saying he wants to reveal what happened to khashoggi in all of its nakedness. rishaad: a bit rich, isn't it? yvonne: his demand for transparency, coming at a time that is ironic given the authoritarian turn

jodi schneider, and peter schaffrik. join us on radio daybreak europe live on london dab digital. you can get for the thoughts from peter there. rotation out of growth into value maybe? how is that playing out in europe? ani: a pretty remarkable reversal in the last 15 minutes. now, we are seeing investors go back to growth. we are seeing profit momentum growth all from the top factors. these have been hammered the past few days as we saw u.s. yields rise, as the curve steepen, but it looks like they are seeing investors come back and saying may the selloff was overdone. if we flip to the downside, we are going to see value and value like characteristics down to the bottom, a complete reversal from what was happening 15 minutes earlier in trading. one thing that has been consistent is volatility. this is a risk off move, so the stocks that have been the most volatile over the past month, we have seen them decline in the past week, falling today. this will be interesting to keep your eye on because we are seeing this back

haidi: joining us with the latest out of hong kong is our senior international editor jodi schneider.estimony was highly anticipated. he didn't sidestep direct messaging on how he feels on the matter. jodi: he basically asked the king to take action against whomever was responsible for this. it was sort of a veiled reference to the crown prince, saying whoever was responsible, no matter their position. he is coming very close to squarely lying the blame on the crown prince. that will be an interesting narrative to watch in the coming days. also interesting is to see president trump's continued reaction, the evolution of his reaction to what is coming out about what happened to mr. khashoggi, including his most recent statement that she is going to pass on to congress the responsibility to take action. he is getting tougher in his language about what happened, and had initially supported the discreditedtheir version of events, asking congress to take action. congress is not in session given that the midterms are less than two weeks away. why is president trump deferring to congress? jo

jodi schneider. >> let's check in on markets this morning.a that is the top gain, continuing to edge higher up more than 4%. the shanghai composite is also up 4%. it's the biggest move we have seen since march of 2016. shenzhen is also the big leader. we talked about how most of those risks are centered in china and we are's being that close to 5%. it is still standing the biggest move since march of 2016. the china index is having its best day since 2015. suffice it to say, it has been a special morning for markets in china. this is bloomberg. ♪ ♪ >> 11:29 in hong kong. i'm paul allen with the first word headlines. president xi jingping has vowed "unwavering support" for the private sector, in china's latest attempt to calm fears about the slowing economy's. that negatesing and weakens the private economy wrong, and support for the private enterprise is consistent. he also said the government would continue to support the private sector. "horrified"s it is that a report to measure saudi arabia and policies may have been used to silence dissi

ahead of the david: joining us to discuss more on the story, the senior international advisor, jodi schneidernsions are escalating. where are we? >> mr. kudlow saying the u.s. is taking this seriously and is contemplating stern action if the saudis cannot explain what happened to mr. sochi. the backdrop is the u.s. is on one time -- one hand saying they are taking this seriously and the saudi's are running out of time, but president trump is not willing not at this point to discuss changing the relationship in terms of arms sales. if the saudi's don't come to the u.s., they will go to china, russia. that is not on the table, but other stern actions according to mr. kudlow are. includedhat would that if not restricting these deals? what can they do to go against what we have been seeing? jodi: there are a number of things, how serious they are about looking at various things is the question on the table, but one of them would be to impose more sanctions. another would be to withdraw dramatic relations. the u.s. is not sending officials to that conference in riyadh following the footsteps of ma

haidi: jodi schneider, thank you.ber one forecaster of chinese inflation is joining us to preview the data from beijing. ahead of the sustainable business summit, this is bloomberg. ♪ haidi: this is "daybreak : asia." shery: the bloomberg sustainable business summit brings together top investors. we sat down with a ceo of a company that boasts nearly $1 trillion of assets. he explains why sustainability is a part of the core strategy. >> the world has changed. people are looking for long-term returns and risk mitigation. today, as you look at the millennials, as they graduate from school and start 92%sting some of the money, of high net worth individuals invest with responsible investing is one of the key elements. globalin percentage of wealth institutions use one factor, sustainability, as an impact. >> there are two factors. passion and sustainability, and profit. what is catalyzing this these days? >> the rich want to leave behind better.that is there is enough empirical evidence sustainability and responsible inv

now is jodi schneider, bloomberg's senior international editor in hong kong. ent'so the comments tell us that the president is coming under from his own congress? jodi: i think it shows there is increasing pressure on president trump to take a stance on the saudi government given the now two-week disappearance of mr. khashoggi. i think it is not just members of the other party, the democrats, it is members of the own party that are critical of hassteps the administration taken in seeming to believe the denials of the saudi government and taking a more wait and see approach, so there is more criticism coming from congress, and the president is changing somewhat. athough this has been complicated situation, as the saudis have been the linchpin of his middle east strategy, and it is something he has had to struggle with and will continue to struggle with. there is pressure to do things sales cancel those arm to saudi arabia, which the president has reiterated he does not want to do. di, the business deals between the two countries, are we thinking of sanctions? wi

we discuss the latest headlines with jodi schneider in hong kong. what went wrong?ad hoped would allow them to have some kind of deal to take to the belgian capital and the ok andsters on wednesday -- the u.k. ministers on wednesday fell apart. in the meantime, there is no new talks scheduled and it looks like the u.k. will be going to the belgian capital on wednesday with no deal. they had hoped to have this so they could have an actual framework for mid-november. and then the 21 month transition period clock could start ticking. but right now, there is a real breakdown and they will not resulted this week. >> does that mean that on wednesday when they do talk, they really are not expecting that much? jodi: we are not discussing much. we expect a discussion about trying to continue to talk. and it may well be that theresa may needs to have a showdown moment in the parliament where people do not think there is any other option for this to go through. we have seen that in this whole process. she had a big diplomatic bungle in september at those eu meetings and she us

seniorspringer international editor jodi schneider., come to brett kavanaugh's defense and essentially say he was proven and is -- innocent through this process. reporter: it was very unusual. this is a process in which we had the supreme court nominee, judge kavanaugh, defending himself before the senate judiciary committee just after a woman who was alleging that he had assaulted her three decades ago, just after she testified. confirmation close 51-49. the whole thing was unusual. the president is now trying to understand -- underscore what he sees as mr. cavanaugh's innocence in this without apology. hoping that this may may help going forward in terms of republicans and the base. watchingcking this and this as the midterms occur in just less than a much -- than a month. we have heard from mitch mcconnell say that because of all this process gop voters were on fire. do we have any idea at this point how this may play out in the midterm election? reporter: it is very interesting. in the house, the democrats need just 23 seats to tak

haidi: thank you, jodi schneider in hong kong. let's get the first world news from jenna dagenhart.pped expectations as they remained resilient. net income was 15 and a half million dollars. that eases concerns about an immediate downturn in ship demands -- shift demand. shares are down about 12% in 2018 compared to a 41% gain last year when annual earnings hit an all-time high. in less than 24 hours the senate heads to a vote on supreme court brett kavanaugh -- supreme court nominee brett kavanaugh looking into allegations of sexual assault. the report was made available with some senators grouping together to hear a staffer read its contents. toocrats say it is hard evaluate the findings while republicans say allegations have not been corroborated. reserve bank of india may raise its key rate 25 date basis points later on friday. with --ar rupee fell expecting a hike. bloomberg economics says the r.b.i. needs to step up on purchases to tackle a liquidity deficit that could balloon this month to $7.3 billion. global news, 24 hours a day, on-air and at tictoc on twitter, powered by

jodi schneider in hong kong.lar is in focus today. -- aussie dollar is in focus today. inflationieved its objective. our next guest is sean carlow, backr strategist at west -- westpac banking corporation. move in the trade war the aussie benefit? >> the market has been bearish. they seem to mark down the aussie whenever trade tensions flare up. in the end, it is not australia's trade war with china. restrictionse new and i guess the positive side could come in to the extent that chinese authorities are concerned about the impact on their export sector from the trade restrictions from the u.s. they are at indications they are willing to boost growth in other sectors, primarily infrastructure. there are signs that is getting underway. so the fiscal policy is a bit looser and australia could benefit in terms of demand for industrial commodities. haidi: so much of this goes down to what happened to the dollar and there is not a lot of consensus to where we go from here. if you look at high inflammation -- hi inflatio

let's bring in our editor johnny scheider -- jodi schneider in hong kong. is saying his death was a plot gone all right. are we sensing -- plot gone awry. difference in a the? -- and thought? >> other heads of state in some congress members have taken the he continues to say he wants to see other investigations. he says there are some very talented people who are continuing to investigate and he wants to see that. but he has really been pushed into taking a tough percents. -- a tougher stance. stephen mnuchin was meeting with saudis as part of a six-country toward and he had similar kinds of messages. at the same time, they are cautious messages. they are not saying what actions the u.s. should take as a saudi'snce of the involvement in the death of mr. shelby -- mr. jamal khashoggi. it is two weeks from the midterm elections and president trump is not want that she would much rather be talking about things thinks will help his base turn out to vote for republican candidates. as both a house and senate leadership are at stake in that election -- both the ho

jodi schneider, senior international editor in hong kong. so how is the trade war affecting trade?oining us now are our guests thank you, the a-team we have on today. talk to me about china. the fact that they were not called a currency manipulator. does it counterbalance the trade rhetoric? >> i think it would have made a big difference if they had labeled them a currency minute later because the base case was that they would not, as your report indicated, china did not meet the requirement. that would have been a major ratcheting up of tensions, so it is good news. clearly, the report is written in a way to keep maximum pressure on china. theakes clear that treasurer is not happy and says china is not doing enough to prevent its currency from depreciating and should do more. but i would say this is in line with the base case, a no escalation scenario. and now we are waiting to see how this pans out. forward, it is still the case that, in response to further tariffs, it would not be a natural for the yuan to depreciate and it is probably not very healthy to have a fixation around

for more, let's get straight to jodi schneider. this feels like a big deal. s is a bloomberg school scoop. they have had so much pressure that we should find out the fate of this in the next four weeks. jodi: there are talks that this could come very soon. it could come right after the midterm elections. there is intensifying pressure on robert to come up with something bank. -- big or shut it down. president trump has been very critical, so there is a great deal of pressure. this is in one of two areas that we think there may be some or that they may be closing in on indictments. francine: what are the two areas? there are multiple investigations and things that are looking at. but what are two specific things he may be closing in on? jodi: one would be pretty dramatic, as he said. -- you say. one is on whether russian officials colluded with u.s. ,andidates, in this case, trump to interfere in the 2016 election. the other would be obstruction of justice. whether president trump or any member of his campaign at the time did anything to obstruct the inquiry. e