buckley,ined by george nomura international chief u.k. and european economist.t is a potential hard out for the u.k. on the way. the markets seem are markedly calm. are we underestimating the potential of what is about to happen? george: look at sterling just sitting this out. clearly, it could go in either direction. if you have a hard brexit, it is clearly going to go down quite a lot. there are some estimates he could go down close to parity. a the upside, if you have deal, sterling could do a lot better. it is a long way away from either of those events. it is sitting in the middle ground until it decides which way to go, bearing in mind some of the huge uncertainties about where brexit is going. guy: the data more broadly are turning quite negative, and the u.k. and europe. the bank of england is starting to be priced regardless of the brexit outcome for a cut. do you think that's right? george: there's been a huge move, particularly since the middle of september, and what markets are pricing. short sterling shifted by probably 25 to 30 basis points towards

that led analysts at nomura -- analysts target at nomura to raise the price target.soft rallied thursday after first quarter results topped estimates and boosted analyst confidence. a.b. amo analyst raised the price target, saying the results support the view that microsoft is a core holding that has both defensive and offensive attributes. bernstein initiated pellets on within outperform and a $29 price ticket -- bernstein peleton citing meaningful opportunities for growth in equipment and subscription revenue. down byshares closed the most in five years after reporting quarterly results that fell short of wall street estimates. the company says privacy issues involving its advertising business will continue to have an impact on performance, but daily active users rose 4% from the previous quarter. i spoke to twitter's cfo, who explained the unexpected miss. by saying start advertiser sentiment continues to be strong, but we did see more seasonality than we expected in july and august and had a couple of product-related issues where some settings did not work as exp

business,retail domestic market for nomura hurting them. hang seng up by about 0.4%. action on this. liquidityis perhaps coming out of the system, which is perhaps responsible. the pboc, central bank not coming into the market to support what has been happening. let's have a look at one that has been acting as a bit of relief when it comes to equity trading in japan. it is video gaming stocks. we have got these at the moment moving to the upside, nintendo capcomcap, up by 3% -- up by 3%. brothers deluxe" first switch getting approval to be sold in china. the mario version, tencent has got the distribution rights. this stock continues to be under pressure. it has been in recent days. even this a bit of a good news not able to help this stock from languishing to the downside. we are heading down as we headed to the close in various markets in this part of the world. nejra: thank you so much. let's get back to marija veitmane, senior multi-asset strategist at state street. i know that you are still looking for the right time to buy emerging-market stocks. earlier, we wer

with us now is george buckley, european economist at nomura bank.seems to be, not only here but around europe, spend, spend, spend, but where will it come from and where will it end? this is the problem. austerity didn't start under the current chancellor. the end of us started under the previous chancellor. we had that huge rise in nhs spending. and on top of that this 13 billion and if we have no—deal brexit, that will cause a bigger rise in spending and you will not have the tax receipts associated with that too upset, so there will bea with that too upset, so there will be a very large rise in budget deficit. when we go across and to mainland europe, looking at germany, bordering on recession now, whatever money they are putting in now, is it going to work and will it solve the problem? there has been clamouring everywhere for increased spending and there has been a huge rise in government spending in the uk but we haven't seen that being replicated gci’oss haven't seen that being replicated across some of the major countries in europe. one of t

we will preview that decision with nomura later in the show. search for returns, our guest chooses equities. the manager of the international equities fund says why they are more interesting than fixed income. this is bloomberg. ♪ shery: this is daybreak asia. i am shery ahn. paul: i am paul allen. dbs group says investors have little choice but to turn to equities. our next guest agrees saying stocks are far more interesting than bonds even though they deliver lower returns. stephen glass is a sydney-based fund manager. thank you for joining us. equities are far more interesting but are they -- it has been a wild ride this week. >> it has been. there is $16 trillion of negative yield in debt out there. it is not a small number. $16 trillion. consider the u.s. economy is a $20 trillion economy, it implies -- it applies to the gdp. anyone who is buying debt is guaranteed to make a loss. they are behind -- they are buying something and it doesn't make sense. it seems more appropriate to which areequities cheaper. the s&p 500 is on a 2% dividend 1

agency trading is also an area that nomura is strong in. there are definitely some takeaways. the fact that there was also some positive news on the rates business is good for banks. the currency business, less positive for someone like ubs. vonnie: alison, thank you. we will be chatting with you a little later on in the session. that was alison williams of bloomberg intelligence. guy: let's drill down into the markets, be take some news away from those u.s. bank earnings. jp morgan looking good, others not so high or hot. we've got geopolitical concerns we need to factor in as well. nicolausister, stifel head of equity strategy, is with us now. did you see anything in today's earnings from these big banks that is going to break the u.s. banks out of the range? barry: i look at jp morgan as a key bellwether. i like the net income, the trading. loan growth was in line with what i was expecting. some of the other banks had special issues related to their investments. there was good cost control pre-much across the board. overall, i think there basing, bottoming. if we can get so

nomura, demands for the iphone up the price target to 205 from 185., speaking of apple, what does a company with $200 billion in cash do? spend it on content. while the company has not disclosed how much it has spent on apple tv plus, it could be in position that current streaming service netflix might describe as enviable. join me to discuss from stamford, connecticut a senior research analyst. tom, who currently has a buy rating on apple. broadly here, as you analyze the streaming service, do you expect apple to outspend its competitors? tom: i definitely apple has the potential to outspend. they have a massive treasure trust, but the way that we have been talking about it is the speculation is they are spending $6 billion up from the original expectation of $1 billion. putspple, that kind of premium content spending as more of a serious hobby and not really a job for the company. i do think they have the potential to spend a lot more but so far they have not shown that. taylor: put that $6 billion into perspective. what are some of the other compet

for that reason, numeral -- nomura is looking to add shorts on any rally because the risk of an election is just too high. paul: thanks so much for joining us. luxury jeweler bull bari -- expectjeweler bulgari sales in china to double even amid the broader economic slowdown. our china correspondent selena wang, spoke to the ceo and joins us from beijing. what did she say? selina: the ceo said 29th -- 2019 sales are already on track to surpass what they had last year. there are a number of factors contribute into increased domestic spending. you have the chinese government trying to encourage domestic spending, he weaker yen pressuring outbound tourism, and the hong kong protest have led to a dramatic decline in mainland tourists traveling there. the decline in sales and hong kong have more than been offset by sales in mainland china, japan, southeast asia, but he's confident that in the long-term term, hong kong can bounce back and regain its status as a luxury destination. take a listen to what he had to say. >> think part is related to what you said before, and that is that more chines

nomura international chief economist george buckley will join us as we count you down to the europeanre now getting some headlines of u.s. officials saying the u.s. does not support the turkish operation which would see troops go into syria from turkey. once again, a u.s. officials saying trump told president erdogan the u.s. wouldn't back in operation. ration. everyone uses their phone differently. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. plus, get $250 back when you buy an eligible phone. that's simple. easy. awesome. call, click, or visit a store today. guy: china narrows the scope of trade talks with washington, not willing to commit to reform on industrial policy or state subsidies. job cuts at hsbc. 10,000 positions on the line with europe bearing the br

higher due to positive data points we've been seeing about that new iphone 11 lineup today the team at nomurathe iphone 11 mitigates risks of q1 pothole and that investor focus may now shift to the 5g iphone expected next year nomura rates apple positive. >> josh, thanks very much for that mike, the interesting thing here, of course, is that it's a bearish note becoming less bearish, coming up from 185 to 205, still well below where it's trading today. >> i think that also reflects there is still somewhat of a cautious overlay of sentiment toward apple, even though the stock has performed well we're near a high. we did last week, thiel take a look at the aggregate price target along wall street analysts it's right around where the stock is trading not to say that they're wrong or too cautious, but it does show you that people have defaulted to apple because it's relatively stable, quality balance sheet suppose real excitement about the product line >> we are seeing the broad markets soften just a little bit as we approach the close we are down 77 points on the dow and have six minutes left. l

nomura says it is about growth, and that will be to the detriment of value. says value is going to continue its september rally. look out for this to happen in small caps. matt: very interesting, dani burger looking at the factors to watch. coming up, is there a light at the end of the tunnel? u.k. and irish leaders indicate a possibility of a deal after they talked. we are live in brussels next and discuss whether this can get negotiations back on track, and what we can make of the irish backstop. this is bloomberg. ♪ anna: welcome back to the european open, we are 20 minutes into the trading day and the brexit affect clear to see on the equity markets. the ftse 100 down by 0.6%. elsewhere we rally on trade optimism. on dollaris impacting corporate earnings on the ftse 100. hopes arising the u.k. and you can strike a brexit agreement, the pound has jumped the most in seven months. joining us from brussels is maria tadeo. is there renewed optimism in brussels about the deal following what we heard? optimistic words. the tone of the conversation has changed. a

nomura to report later today. we will see profit steady for the lender.yearly income. looking tssor the first time in three years, but there are signs of overheating. haidi: sophie kamaruddin there. , shane oliver joins us, weighing in on the recent market optimism entrÉe talks. earnings season rolls on. discusst joins us to the strength and hurdles to the beverage market. the market open in seoul, korea and tokyo is almost upon us. this is bloomberg. ♪ markets --easure major markets have just opened for trade. >> welcome to daybreak: asia. >> our top stories this morning, trigon tuesday for more stocks and as he fails to get parliament back for an early election. the house will vote thursday on whether to import -- support the impeachment inquiry against president trump. let's get straight to the market action. we have japan and south korea. nneka 255seeing the andhe nikkei gaining ground valuations are proving as well asto some japan, south korea and singapore. below 109.g steady prices just happened percent year on year, so a tax hike not doing much fo

there are nomura cuts implied at this stage for the fed. weking at fed funds futures, are looking at another 50 basis needs. -- basis points. the potential contraction in manufacturing activity, the slowdown in u.s. business investment, and more inortantly, the decline inflation expectations, whether you look at it from a survey measurement expectation or market-based expectation. we think the fed ultimately will be compelled to cut interest rates, especially if global growth continues to lose momentum. we are going to get to the fiscal side in a bit. do you think the u.s. is going to get more physical health? donald trump wants to cut taxes and he seems to want to put money back in people's pockets. >> i think if there is one thing that can unite democrats and republicans in terms of fiscal stimulus, it is increased infrastructure spending. that is a common theme across all parties. how it's going to be implemented, that is anybody's guess. there is a big divergence in terms of how to implement spending programs, which will clearly be a th

among the laggards in tokyo, dropping after the prophet missed while nomura is jumping on its reboundnd space is mostly higher, continuing to slip with the 10 year yield above 3.3%. the pboc held off on liquidity injection for a third day. with a rise in poor prices on the mainland, that is looking tougher for the central bank to ease aggressively. i want to end on some stock movers. hong kongfalling in as well as shanghai. cicc trimmed the price target and earnings forecast. want to highlight china light which is rising in the back of its results. new business value. an expect apace for the insurer. the listed price target with new business value growth. that is the best amongst it's listed peers. tracy: thank you. we are in the midst of earnings season and have some breaking news coming across the bloomberg. earnings from the arrow's best heavyweight airbus coming in for the nine-month period. reporting third-quarter revenue billion, perhaps euros. the big news is going to be airbus cuts its 2019 aircraft delivery as well as its free cash flow forecast. lots of people were expecting

they have a mixed bag but certainly after resuming trading, investors like that set of results from nomurat the best behind them after a rough couple of years. still ahead, sticking with japan, recapping stellar retail numbers. -- a lookok at head ahead at the implications for the bank of japan. aramco tells ipo bankers it made nearly $70 billion in nine months, details ahead. this is bloomberg. ♪ ♪ "daybreak asia." i'm shery on new york. haidi: i'm haiti stroud-watts in sydney. sendingurge in retail -- spending in japan. joining us now is naomi muguruma , senior market correspondent for mitsubishi. these numbers are out of wack with market expectations, is it something we are not likely to see repeated? that was a likely frontloaded demand by consumers to purchase goods before the consumption tax rate hike. naturally come there should be some decline in demand from october. coupled with tokyo cpi numbers yesterday showing there is next to no inflationary pulse, even if you take into account they should have seen the impact of the sales tax hike in those numbers, that did not trickle throu

chips are mixed with upgrade from nomura over at xilinx that is one of the big gainers on the nasdaq.g, holding up the chip sector, but it is fractionally lower, chips are among the strongest performers so far this month, up about 2.5% for the sector the faang names are kind of mixed as well. facebook, of course, feeling a little bit of pressure this morning as both mastercard, visa and stripe join ebay and pay pal in saying they are not going to be supporting libra. nonetheless, facebook, netflix, and apple so far this month are the best performers among those faang names. finally, lyft and uber continue to face regulatory issues here in new york city they want to limit the amount of time that uber and lyft drivers can cruise around the city, particularly manhattan without customers and the two ride sharing firms are suing the city to try to not be penalized on that front lyft continues, though, to be under pressure you see it is down 45% from its debut this year. back over to you guys. >> yeah, story we'll continue to watch, thank you bertha coombs at the nasdaq. time for a closer l

. >> nomura is out this morning, don't make it a catalyst for the stock. annual revenues small versus the total. it is rarely worked out this actually moves shares one way or the other. >> i don't know if i agree with that you're talking about 200 to $300 million free cash flow benefit i too had come up with that analysis initially and was saying on twitter this weekend, don't pay up for it i don't like paying up for it for a company that reported a great number i would rather buy amazon down eight, the number wasn't that bad. this was a big and lucrative contract people have to understand, you look at the gross margins for data center, it is far better than the rest of your business because, yeah, you build the data center, they will come, it does work. so i think it should be up, should be it be up -- we're up 3.5, probably end up being able it to buy it at 2, up 2. >> it would surprise you if amazon contested this as someone said they might. >> people think amazon will contest it i'm looking at a guy like jassy so fabulous, i think they say let's get ou

nomura is initiating etsy as a buy with a $70 price target.ng a $170 billion market for the core business one of a number of bullish notes on etsy. >>> wedbush initiating domino's pizza as outperform with a $280 price target the firm views the company's financial model as among the most compelling in the publicly traded restaurant universe do you agree with that call? >> absolutely. this is a company close to my heart. people think this is a bunch of restaurants. it's actually a restaurant supply business. they get to sell pizza dough to all of their franchisees around the world at wonderful margins they earn franchise royalty fees on revenue, not on profit. it's a very well-positioned business that's growing. >> hasn't done all that well as a stock of late. that competition from delivererers, grub hubs and all the others >> over the last ten years, this stock is up threefold. it's been a great business all the way back to when tom monahan started it in ann arbor, michigan it's a little bumpy, but it's a great business that's growing internati

reduce or the firm's sell equivalent with a $49 price target optimistic on increased reinvestment nomuraalued. roku going from $1.57 to $1.05 a share. roku, the stock is up 4.5% joining us now the analyst behind the call. thank you for joining us >> hello >> you had a buy, went back down to neutral and now you're back to buy talk us through those steps, why you downgraded and why you're back up to buy. >> mostly valuation calls both of these ways. this was a rocketship in the first half of the year got adds high as $170 and pulled back to $100, that's an enormous amount of volatility. but you see that sometimes we liked the story fundamentally for some time and there's a great theme here we're entering streaming wars. we know that when we think about the disney launch and the apple launch and time warner launch, et cetera. i like netflix, the stocks hasn't worked well, but i like the stock. roku they're going to get advertising revenue as these streaming platforms try to market themselves. if you sign up for a streaming network via roku, roku gets a revenue share for that and anything th

george buckley, chief uk and european economist at nomura, is here. good afternoon.ear. the problem is, as mark carney said, 0.5% sounds good, but it will not last. one of the reasons why this has been so volatile is you have had stockpiling. people have been bringing in goods and producing goods on the assumption we will see a hard brexit and they are preparing for that eventuality. if it does not happen, what we will see is the stockpiling turning into a stock reduction in the final quarter of the year. that will weigh on gdp. i would not be surprised if you had a good 0.5% in quarter three and possibly 0.4 in the final quarter. that is interesting. what policies are making about it, we heard one member of the bank of england panel say deal or no deal, the next move in rates could be down. there is a mood shift going on here. yes, there is. what the bank of england is saying is by the end of their forecast, based on normal expectations for things like sterling and interest rates, you might even look at inflation below the target in three years' time, not above it.

first one to get it was ubs, then i guess because of the trade war, that's when jpmorgan nomura and otherowning their own brokerages on the mainland. neil: we are following this closely. everyone stick by. we are waiting to hear presumably from the treasury secretary of the united states. could be a host of issues. might be on this so-called tentative trade deal, truce, whatever you want to call it. might be the escalation of impeachment tensions that right now our ambassador to the european union, even though he was told by the state department not to go to congress and testify, he opted to do just that. that's raised some hackles that he's going to do that, gordon sondland. could have something to do with that. could have something to do with turkey getting very aggressive in northern syria, reports of at least 100 kurd soldiers killed, maybe more. others have put it up to 1,000. we don't know. we are also following maybe our response to what seems to be this iranian tanker hit. the iranians claim it happened overnight. that sent up oil prices a little bit. no way of knowing, but all th