shery: i'm shery ahn. latest headlines on the usmca trade deal between the u.s., mexico and canada. we are hearing from house speaker nancy pelosi saying the final deal has not been agreed to, but they must see the implementation of legislation. we heard the canadian representative and u.s. were presented to this trade deal are flying into mexico on tuesday. krista friedland is likely to join the talks and makes a coat, saying she is set to meet ambassador light hauser and mexican officials on trade as well. we heard from president trump saying the nafta 2.0 is looking good. now, we are hearing from nancy pelosi that they still have to see implementation legislation. let's bring our economic editor sarah mcgregor with the latest. that is all we heard from nancy pelosi that the usmca deal has not been agreed to. what could be deterring that democrats from pulling the trigger on this deal? sarah: this just shows the complexity of halley all of these vested interests in the final stages of the usmca talks. i

shery ahn: i'm shery ahn. >> welcome to daybreak asia. paul: our top stories. paying the price for a tumultuous year at boeing. the leaves amid the failed space mission. up their bid. shery ahn: thousands rally against police actions in hong kong. the unrest came up in toxic think china and japan in beijing. a study markets not kicking off trading in the early session. sophie: stocks stay below 6800. not going anywhere fast given the holiday week. after a three dated decline. as investors consider the earnings trajectory going into 2020. futures are pointing to gains in tokyo and seoul, adding less inn 1/10 of 1%, wellington. switching out the board. the aussie dollar set to snap a four day gain. 1.30ound trading below after being the worst performer ing itsht after cappting i longest lower run on no deal brexit. yen barely budging as it is set to end the year, defined stronger forecasts. boj's meeting minutes due later this morning. paul? paul: let's get the first word news with haslinda amin. slinda: thousands rallied in hong kong monday evening against polic

paul: thanks, shery.ned public protests and shut down communications and the internet in some areas. citizenshipr as the log rages on. thousands are defying their ban. let's bring in dan. what is the latest? a big dayrday was where we saw protests all over india. most of them were peaceful. there were instances of violence that broke out, reports of one or two deaths from gunshot wounds. pretty much, chaotic. bringing a sense of, you know, what is next in this whole movement. it erupted due to the citizenship law. there are things on the agenda that could further inflame religious tensions in india in the month ahead including the construction of a hindu temple razedsite that was decades ago where a mosque once stood. shery: we continue to see indian stocks touching record highs. why aren't we seeing this impact on market sentiment there? an: so far, it is just question of how far this thing will go. modi, on the one hand, has been going around courting foreign investments, taking measures to boost the ec

shery: i am shery allen in new york.na is taking more steps to open up sectors ranging from energy to telecoms medications. jen one you says the government will offer tax breaks and lower financing costs for private companies, which accounts for half of the mainland economy. we have our china correspondent selina wang. we have heard from beijing they will be opening up their financial sector. how much farther does this go? statementcording to a reported by a news network, this is part of a broader market using recommendation targeted specifically to help these private companies. it is also part of an effort to open up industries from oil and gas, telecommunications, railways. private companies have gotten squeezed with tougher access to capital as china's economy has slowed and we are seeing warning signs and the banking sector as well as a crackdown on shadow lending. small companies have gotten squeezed very hard in particular, so this plan also includes efforts to further lower the cost of financing to these small com

this is bloomberg. ♪ ♪ shery: this is "daybreak asia." i am shery ahn in new york.ey. overdian billionaire won defaulted loans, told by a london judge it was implausible and unlikely. agreed to loan him almost $1 billion in 2012 on condition he gave a personal guarantee. the tycoon said he never offered such a promise. shery: westpac hit by a new requirement, and inquiry that they committed the biggest breach in money laundering laws in australian history. billion aussie dollars. the regulator looking at whether westpac [indiscernible] and will review their pay and culture. gojekindonesian megaapp looking to buy bluebird. aboveould pay $20 million 20% of its close in jakarta. they face mounting competition from singapore-based grab holdings. acrosstensions high india as protests continue over the controversial new citizenship law. five days of sometimes violence demonstrations from new delhi to mumbai to the eastern state of assam. shinzo abe ofster japan delayed his trip to india because of this. what are the concerns about this law? modi's critics, another step in

shery: good evening from global headquarters in new york. i'm shery ahn. sophie: and i'm sophie kamaruddin in hong kong. welcome to "bloomberg daybreak: asia." ♪ haidi: top stories this monday. china's factory output prices, manufacturing improving. above 50 for the first time since april. nissan looks ahead to the new ceo as they face slumping prices -- slasheed to skash costs and jobs. and in hong kong, police and protesters clash again after a week of relative calm. shery: consumer inflationshery:. year cpi numbers. growth of 0.2 percent. but this is missing expectations that we would see a rise of 0.7%. despite the missive estimates, we are seeing growth from the previous month when the inflation number was flat. month on month, disappointing 0.6%. a contraction of estimates were for a slight growth. this is contraction from the previous month of october. we know south korea faces challenges including negative base effects. last year in 2018, we saw a higher food and crude oil prices back then. the year on year number remains under pressure so we are s

this is bloomberg. ♪ shery: this is bloomberg markets. i'm shery ahn.ow to some breaking news. the wall street journal reported that china's corporate espionage is larger than previously known. we are seeing hp shares dropping to a session low. the story says chinese hackers used service providers such as cgi, ibm. the report also says hp enterprise has been overrun by hackers. the dow jones coding hp, saying the company has worked diligently to remediate the intrusions, but we are seeing hewlett-packard's stock falling .7%, as much as 1% on this story that it's been overrun by chinese hackers. china, the country took another step toward liberalizing its financial system. the country's central bank ordering lenders to adopt a new loan pricing regime for all credits, marking an end to the previous benchmark. joining us now is peter coy. ourme just explain to viewers what the pboc is trying to chew. this chart on the bloomberg showing how they are trying to get rid of that white line, which is the one-year benchmark lending late. then they want everyone e

shery: i'm shery ahn in new york where it's 5:30 p.m.atching "bloomberg daybreak: australia." let's get the first word news with paul allen. paul: thank you. the aussie dollar strength and after data on saturday unexpectedly showed china's official manufacturing tmi rising above the 50 level for the first time since april. 50.2 reading easily beating estimates. that boosted investor confidence. one reason to caution is a tweet from the global times sunday saying china wants tariffs rolled back and part of any interim trade deal with the u.s. the german government faces a crisis after the coalition partner elected a loony russian new leader seems like a threat to chancellor merkel -- coalition partner elected a new leader that seems like a threat to chancellor merkel. they say they have no intention of toppling merkel, but may issue policy demands that the chancellor might find hard to accept. the european union is beginning a new era with a leadership change at a range of institutions. is replacedjuncker while christine lagarde succeeds

this is bloomberg. ♪ shery: this is bloomberg markets. i'm shery ahn in new york.manda: i'm amanda lang in toronto. the u.s. 10 year yields are creeping back to 2%. in that as investors flock back to risk assets and away from the relative safety haven of bonds. the senior portfolio manager of menu life financial is with us now. a great person to talk to because you are a believer in u.s. treasuries. you have significant exposure to them in your pond, which has historically done well. not so much lately maybe because of that. talk about what you are thinking about u.s. treasuries at the moment. >> the beginning of the year, when the fed did the about-face, we thought to sell bank loans and by treasuries. that worked well. as we go forward, some of our key risks have taken a backseat, whether it is the brexit situation, china situation, some economic numbers in the u.s. have turned a little bit. stabilization. maybe a little bit in europe. a selloff in treasuries but you want to have a balance between yielding positions in your portfolio with high grade and e.m. come

shery: live from bloomberg world headquarters in new york, i'm shery ahn. welcome to bloomberg markets. here are the top stories that we are following from around the world. u.s. stocks ticking higher on a thin holiday trading day. amazon leads the s&p 500 thanks to record sales. $18 billion in bids. termhe fed's repo operation was under subscribed. new messages from inside boeing show concerns raised during the development of the 737 max. let's get you started with a quick check on the major averages. u.s. stocks adding two major highs. session, holiday week, but consumer companies are leading the gain. nordstrom's, macy's, jcpenney all gaining ground. the bloomberg u.s. consumer confidence index hitting a nine-week high. the nasdaq gaining 30% this year. one of the big gainers, pharmaceuticals rising 50% at the moment. earlier this month, they had announced the beginning of that phase three drug trial. they also said that terri curren would be joining as ceo of the company. take a look at another stock leading the s&p 500, gains at amazon. trailing the s&

shery: i am shery ahn.ther leading fed official is jumping on next years's no policy change bandwagon as he prepares to regain on the fomc. kathleen hays has been speaking exclusively to dallas fed president robert kaplan. what exactly did he say? kathleen: let's put robert kaplan into perspective. he was on board with the rate cuts and then he was a little uncertain about the second one. by the third one, he was not sure he was on board at all. and he was worried about the yield curve. line, he does see the economy staying on track. are you in this camp of no changes next year unless something happens? i said what you mean? here's what he said. material change in the outlook, either for better or for worse. i have already gotten baked into my outlook. we will have weak manufacturing next year, sluggish global growth. pretty sluggish business investment. there would have to be some material change for that outlook. kathleen: where is the risk in your mind? robert: it is fairly balanced at the moment. i am h

shery: i am shery ahn. sophie: i'm sophie kamaruddin in hong kong. welcome to daybreak asia. ♪ this: our top stories tuesday -- u.s. stocks fall on renewed trade fears. markets digest new tariffs for brazil and argentina. and warnings on additional duties on china. restraintts back with from protesters in hong kong. the u.s. navy can no longer visit the city. she race to roll out 5g pit the u.s. against china. we will get telecoms' views on rivalries from huawei. shery: breaking news out of south korea. we have the final third quarter gdp numbers. year on year growth of 2%. that is in line with the advanced estimate. same thing for the quarter on quarter numbers, grown 4.4% which is the same as the advanced estimate. the year on year number is really staying steady at 2% growth for the past two quarters. we have seen a lot of negative sentiment around the korean economy. a contraction in an investment and a slight slowdown in consumption. the korea government has capex spending so government spending has been a kees source of support. pmiave seen man

shery: i'm shery ahn in new york. using u.s.na trade tensions have lifted copper to their highest level since july. the risk on rally has logged on gold. is signaling a change in 10 yields.asury to help us break it down, let's bring in katy rifle who spoke with him earlier. how high does he see yields going? katie: he is looking at this ratio with copper to gold. copper has been accelerating versus gold. it is at its highest relative price since july. gun lock is looking at that relationship and ratio and he thinks that speaks for a 10 year yields to be closer to 2.15%. we are at about 1.88% right now. that would be a big move, 25 basis points. course, copper moves with economic prospects, i guess we would expect it to move on relief around china. what about gold? has it been driven by fear and that is why we see a disconnect? katie: exactly. if you look at gold prices, they peaked at the same time that treasury 10 year yields bottomed. both of the assets really react to economic fears and trade tensions in inflation inputs. cha

shery: live from bloomberg world headquarters in new york, i'm shery ahn. amanda: live in toronto, i'm amanda lang. we are joined by our bloomberg and bnn bloomberg audiences. andy: president trump macron are pulling forth dueling visions of nato as the leader defends a $2.4 billion tariff threat on french goods. the bank of montreal makes the industry's deepest job cuts in years. we have a roundup. an act of work. a cyber attack is pitting it against insurers. the question is who pays for the damage? amanda: quick check on the major averages here. we have some degree of negativity out there, and thanks, part two a new pessimism on just how long trade talks and tariffs may continue with the u.s. president saying this could not be resolved until after the next presidential election. the fundamentals being watched closely across the broad markets. earnings are still in focus. in the s&p 500, only real estate and utilities moving higher. financials, industrials, consumer discretionary, down. is moving higher of the dow industrials. one of the worst starts we h

press shery: shery:. burying president trump amusing military funds to pay for his wall along the mexico border. what do we know about this? joe: this was an extension of an order by the district judge in el paso. he previously rolled on it. the supreme court said the president could use certain money, drug interdiction funds for the border wall but now the judge has come back and said that no military construction funds could be used for the border wall. this is something that has been controversial in congress because it has diverted money from of the cherry construction projects including bases, maintenance and those sort of things. throwing a wrench is the negotiations going on now about spending for this fiscal year. this was a big point of contention. they seemed to have settled it without too much rancor. now with trump being blocked from using a further funds, this could create a new complication as congress looks to settle it spending issues before next friday which is when the government would o

shery: sophie.conflicting lines around the tariff deadline, here is a quick snapshot of the market reaction to peter navarro's comments earlier on fox p or the offshore yuan and .2%e minis weakening by while the yen briefly strengthened against the dollar. this afternoon are a said there is no indication that there will be a delay. it is up to china on whether a deal is secure. he also contended that china is trying to shape the narrative and affected the futures market. we are seeing a broader market, looking more risk off. is deepening in tokyo and seoul. the topic -- the topix off. mark cranfield expects the knee-jerk reaction could be reversed if the pboc has a steady fixing today. shery: thank you. happening right now, president from speaking in pennsylvania at a make america great again rally. the president talked about the usmca being a silver lining to his impeachment challenges. we have seen the house democrats announcing two articles of impeachment. of course, that could be a big win for t

shery: and i am shery on in new york.n leader kim jong-un is urging positive and offensive measures to bolster his country's security ahead of his speech.ew year's day bloomberg's breaking news reporter has been tracking this from seoul. what are we expecting when he speaks. >> tomorrow, when kim jong-un watchers all over the world will be seeing whether or not he will be using the platform for a make or break announcement in terms of denuclearization talks with all trump. currently in north korea and the u.s., they are at a deadlock in terms of working level talks, so what we he will say, without not he will decide to walk away from the talks or keep doors open and what kind of conditions he will doors for talks opened is what people will be closely watching. paul: in terms of the future of these denuclearization talks what cards does kim have to play? jihye: the options kim jong-un has are including breaking a moratorium with donald trump that he personally promised against launching into residential -- launching interc

shery: i'm shery ahn in new york. aramco pricing moments ago at the top of the range, denolly with the company at $1.7 trillion. joining us from the yen is annmarie hordern. you are there because we have the opec meeting going on right now. what can you tell us about this ipo? despite the fact that foreign interest was absent, local demand was still strong. >> that's right. mohammad bin salman, the crown prince, will claim this as a victory. you have to think, it is the world's most valuable company but it will not trade on the new york stock exchange, inprince, a victory. london, it will trade in riyadh. he will claim this as a victory. range,er end of the valuing the company at $1.7 trillion. of course, the ipo has not been without set backs. when he first touted this, he said it was worth $2 trillion. it has basically been snubbed by foreign investors as too high. what this ipo is doing, it is local investors, banks are lending big or it. local households and corporations are shifting the money to the government. i

shery: good evening. i am shery ahn. sophie: and i am sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this new year's eve, it is a done deal. white house trade advisor peter navarro says phase one of the u.s. china trade agreement will be signed early january. china's official pmi numbers are due out later and may show continued expansion as president she prepares his new year's address. is set to be ghosn in lebanon. one source tells us he fled japan ahead of a trial and financial misconduct charges. markets in asia are winding down for the year. australia's equity market closes early this new year. sophie has a final session -- how is the final session of the year looking? sophie: some pressure coming through. the aussie share market off 1.2% , trimming the year-to-date gain but still set for the best year since 2009. e-mini's little changed. nikkei futures in singapore off by 1% and the bloomberg dollar index extending declines for a fourth straight session as the greenback is set for the fourth annual drop since 2010. let switch ou

shery: i am shery ahn in new york.ry page and sergey brin are set to be stepping back on their day-to-day roles with sunder pichai becoming the boss of both google and alphabet mark bergen has the story in san francisco. what would this mean in terms of the operations at alphabet? would anything change? mark: the fundamental changes right now, that are a bunch of outlet companies outside of google like waymo, self driving cars, verily, health tech. they report up to the alphabet board and a management board that was where sergey brin and larry page set. now centerpunch i will be sitting on the board along with their own management operations. the company sent out a statement saying they are confident in the ceos and management team to go forward autonomously. this gives sunder pichai even more power than previously which was quite a bit. that: a lot of criticism larry page was not as engaging with lawmakers and policymakers given the topic of how powerful and influential google has been. with that be a reason why they

shery: i am shery ahn. sophie: i'm sophie kamaruddin. welcome to daybreak asia. paul: our top stories, volumes are low but sentiment seems high as markets in joint a year in recovery -- enjoy a year in recovery. there is less optimism in hong kong. the financial secretary said the economy is set to end the year in contraction as months of protests take their toll. there is course for massive evacuations in australia as wildfires continue to burn amid a heatwave. shery: starting with breaking news out of south korea, we are getting industrial reduction numbers for november, contracting .5% is missing esti. it was expected to stay flat. it is a stabilization after a fall of 1.7%. the previous number for october was revised higher, contraction of 1.6%. we are talking about a contraction of 0.3% year on year, a stabilization from the decline of 2% in the previous months. we have seen some signs of stabilization in the wider region and china's industrial profits showing a rebound of 5%. more signs we could see stabilization in the region. up for then exports first 20

shery: i am shery ahn. sophie: i'm sophie kamaruddin. welcome to daybreak asia.ries, volumes are low but sentiment seems high as markets in joint a year in recovery -- enjoy a year in recovery. there is less optimism

shery: thank you. we are hearing u.s.itrust regulators have widened their scrutiny of amazon and are now going beyond retail operations to also include their massive cloud computing businesses according to people familiar with the matter. investigators at the u.s. federal trade commission have been asking software companies recently about practices around amazon's cloud unit. that would be amazon web services. be outraged by the ftc signals the agency, which is already looking at amazon's conduct in their online retail business, may be taking a broader look at the company to determine if they are violating antitrust laws and harming competition. the ftc and amazon have declined to comment, but bloomberg has learned amazon now faces widening u.s.-antitrust scrutiny in their cloud business. you can see amazon web services revenue growth. it's very that it's a very high margin segment for amazon, but revenue growth has stalled recently. coming up next, the japanese prime minister is set to announce massive new stimulus later

shery: i'm shery in new york.ank of japan wraps up its last meeting of the year later today and is expected to hold steady once again. kathleen hays is here with the preview. we have some newfound optimism. kathleen: think about it. for the last six months of this year, it has been pessimism. will the boj have to add more stimulus? what can we do? could they make the negative rate more negative? could it even make a difference? fiscalinister abe's package i put at the top of their list. look at the bloomberg terminal and we will see why this is so important and such a big relief for so many people, including the bank of japan. you can see how you're are looking at retail sales, and you can see 2014, the first big drop down where the red lines are. that actually preceded a big drop down below. you can see what happens, and you can see the far right-hand side, looks like that might already be starting to happen. this all kinds of things hurting the japanese consumer right now and the japanese economy, but on the bot

shery: i'm shery ahn in new york.s reported to have reached an accord on its long-distance new york to london flight. the agreement will clear the way for a final deal that will allow project sunrise to receive the carrier. the union will support a pay accord after negotiation. paul: airbus under scrutiny in india, having to replace more engines than originally thought. regulators say more intense forination of power units the planes show more may be at risk of shutting down in midair. engines are in use on the planes. 130 will have to be replaced. with aviation, boeing suffered another blow to its reputation. a software glitch forced the neustar liner capsule to abort a mission to the international space station. of the 737 max being grounded with no sign of a return anytime soon. su keenan has the story. been an opportunity to showcase boeings engineering prowess but it didn't pan out. : many are concerned the ceo is under increased pressure. this was supposed to be a mission to dock with the iss, and instead, the c

shery: -- shery. newy: boeing has named a ceo after ousting dennis muilenburg. struggling tois navigate the 737 max crisis. stephen engle is watching this. 400,000 parts go into each 737 max, so how significant are the latest developments at boeing? significant,s obviously. under dennis muilenburg, boeing had been on a great run. this company becomes the biggest industrial giant in the united states, surpassing ge, under mullen berg. it's stock had tripled up until the beginning part of this year, when the problems -- the mechanical problems -- started to surface with the 737 max. the two crashes and more than 340 or the 346 -- associated aths associated with that. dennis muilenburg, his philosophy, his mantra, was compete to win. he really drove a hard bargain with suppliers around the world. he put, according to a number of analysts, a laser focus on costs. it is being called a retirement but let's not mince words. he has pre-much been ousted. the question now is did he put cash and cost savings at the expense of safety? that is the big question. david calhoun

shery: i'm shery ahn in new york. it is time for the bloombergquint take.y, a sweeping privacy law look at california's new rights and powers to control their personal information. it is similar to privacy laws that exist in the european union . the law limits how companies collect and make money from users data online. consumers will have the right to ask a company to have their data deleted. they will also have a limited right to sue over data breaches if a company did not eat security obligations. the measure affects companies that bring in more than $25 million, hold information on 50,000 or more consumers, or derive half of their revenue from selling personal data. facebook, google, amazon, twitter, walmart, and other thousands of companies. many in the tech industry agree that a privacy law would be preferable to a patchwork of state laws, but there is disagreement on several issues, among them, whether consumers should be allowed to sue. credit suisse is blaming its former chief operating officer for a second spying incident. a statement from the ban

shery: i am shery ahn in new york.holidays offered no respite for protest that has gripped hong kong for more than six months as demonstrators targeted shopping malls over the past three days. daniel joins us now. so how targeted were these demonstrations? dan: protesters went after shopping malls, as they have done repeatedly throughout the past six months. the christmas holidays upon us. you know, there was some hope that things would be more peaceful. they were not, of course. shopping malls in the retail center have been hit hard over the past six months. in october, retail sales were down 24%, and the economy has been in recession. carrie lam accused reckless protesters of ruining christmas, so the government is keeping up the intense language. this is leading up to new year's day, january 1, where we expect a major rally downtown. paul: yes. to that end, starting the new year with another rally, these protests have been quite enduring. is there any indication they ebb a little in 2020? dan: no. there are signs of

shery: exactly.h speaker pelosi delaying the articles of impeachment, what is the latest progress on that front? when could we see that being sent to the senate? >> that's right. before nancy pelosi spoke out, all sides pointed to the fact the senate would hold a january trial, but right after the house voted on impeachment over the withheld ukrainian military aid and some obstructing of congressional investigations, nancy pelosi held a press conference where she said she was waiting to send over articles of impeachment and suggested it might be linked to how the senate is going to hold this process. there is some procedure here. as i said, once they do send the articles, the senate has to take it up and do it immediately, and before the break, there were some other things the senate had to get done first. it is still possible and even likely the senate could turn to that in january, but we will have to see. sullivan in d.c., thanks for joining us. a quick check of the latest business flash headlines

shery: thank you.he federal reserve circled its policy wagons and the strongest consensus of the past year to not only pause after three consecutive rate cuts but to signal the key rate to stay where it is for the coming 12 months. with global economics, policy editor kathleen hays is here. we have seen a very divided committee, but not this time around. kathleen: absolutely. the first time there was no dissent this time of year, but importantly, we know jay powell had sent out signals that even the outliers, even jim bullard on the dovish side conceding that the fed might need to pause. jay powell made it clear the fed at this point after three rate cuts in a row thinks it has done enough. take a listen. mr. powell: with our decisions through the course of the next year, we believe monetary policy is well positioned to serve the people by serving continued economic growth, strong job market, and inflation near our 2% goal. have it. there you jay powell, of course, was asked , the trade war was such a

shery: i'm shery ahn in new york.ore on the news out of japan, machine orders plunging 6% on the month. it would be the biggest fall since july. the fourth consecutive month of declines. the expectation was for a rebound. we are also getting on friday industrial production data in the boj's survey. let's ringback the chief global economist. thank you for sticking around. talk about japan because the economy is very much under pressure at the moment. we have seen the fiscal measures , the package of $121 billion coming from the japanese government. how much will this help? bob: i think the fiscal package will certainly help. you have to keep in mind that a lot of macroeconomic data in japan is pretty volatile. we saw that with third-quarter gdp when it went from seasonally adjusted annual rate to .4% to 1.8%. is of the key drivers investment. japan,look forward for keep in mind it is part of the global economy. think about what the global economy is doing. i mentioned in the prior block that i think we are seeing more

i'm shery what -- shery ahn in new york. amanda: i'm amanda lange in toronto.may be starting a production halt for the 737 max. beyond likely to slip january. it is anticipating an output pause as the least disruptive option. brooke sutherland is with us now. hard call imagine, a in terms of the costs associated with stopping production, versus the costs associated with storing the planes. what does it mean that boeing is considering this? brooke: what they have communicated in the past is that if regulatory approval pushed into 2020 they would have to reevaluate production. as it is, they have built nearly 400 jets that they now cannot deliver, that they have to store at their factories across the country. they are overflowing so much they are now parked in employee parking lots. for boeing, there is also a cash consideration. if you are not delivering jets, you are not getting paid for them. you are still spending money to produce them. this would have ramifications not just for boeing, but for its supply chains and the broader economy, when you think how cru

this is bloomberg. ♪ shery: this is bloomberg markets. i'm shery ahn in new york.da lang in toronto. bank of england governor i'm amn toronto. mark carney has accepted the role of special envoy for climate action and finances. it was announced as part of the u.n. climate change conference kicking off today. he will take on the role with a pay of one dollar a year, after stepping down from the central bankers job. companies, he said and industries not moving toward a zero carbon emissions will be punished by investors and possibly face bankruptcy. here inn the meantime, bloomberg headquarters in new york, we have the global investing for him. rekha unnithan is set to present nuveen securities' approach. mark carney has acceptedshe is here . thank you so much for coming into our studio. there is so much focus on impact investing. at the same time, so many global uncertainties, whether geopolitical with a trade war. we continue to see the manufacturing slump around the world. how much focus is there on this, and what has the trend been like in recent years? rekha: tha

shery: i'm shery ahn in new york.s have reached a tentative agreement to fund space force. president trump has said the dangers and space require a separate branch of the military. the pentagon has called for aggressive capabilities to defend u.s. interests in space that would include systems to disrupt or destroy an enemy's capabilities. space force would sit within the air force similar to how the marine core assists with the navy. the main threat to the u.s. is its ability to disable satellites from the ground. in 2007, china used a missile to destroy one of its own old satellites. destroying a spy satellite means the flow of real-time could stop. amanda: we are bringing in sonali basak. the revenue targets look ambitious quote the ceo. how are we receiving that information? >> a lot of investors were inspecting that they would have some headwinds. they are focusing on a lot of their retail operations. for him to say they are leaving on their investment bank is especially interesting given that they have downsized

this is bloomberg. ♪ is bloomberg. ♪ shery: this is "daybreak: asia." i'm shery ahn in new york.'m haidi stroud-watts in sydney. investment opportunities defined by some tectonic shifts in the global economy. japan is set to be at the center of these developments. bloomberg live big year ahead is in tokyo. let's get over there and in -- enjoying erik schatzker for more. there are technomic shifts taking place here in japan. with me to talk about them is kathy mcsween, vice chairman i goldman sachs. how are you? >> good. erik: prime minister abe is due to announce as soon as today new packages of fiscal reform, stimulus, for the japanese economy. the headline figure appears to between ¥5 trillion, roughly $230 billion. what do you want to see in this package to believe it can be effective? >> i think it is frankly going to be a multi-year package, meaning it is not all going to be spent in fiscal 2020. it is going to be divided over a course of multiple years. i think in terms of the content, there are a number of priority areas given the slew of math -- of natural disasters that

shery: he remains bullish heading into next year.does not think powell or trump will do anything to upset the market. this is bloomberg. ♪ amanda: fedex reporting second-quarter earnings after the bell with results coming below estimate. opinion, brooke sutherland, joins us with the latest. earnings appeared to be in freefall. how bad are they? >> it is bad. i think this is the fifth straight cut. it has been one thing after another. at this point you have to ask, does management have a hand on the problem? they blame timing this quarter. between thanksgiving and christmas was so short this year. they blamed rising costs to deal with the seven day a week delivery. these things have been in the works for a while. the calendar did not change from when fedex gave its last forecast update in september. i think the fact they misjudged the so badly continue to raise questions about his the execution there? one of the things that is extraordinary as we view --ex as a lost its relationship with amazon? the changes happening there. something

shery: we are seeing a turnaround in asia. would got the numbers for south korea and they turned positive for the first time in 10 months or so. could we see a turnaround in 2020? >> for the better part of the last 12 to 14 months, we have seen declines. eventually, that is going to bottom and money goes to other direction it will be good. at 5.6 gdp looking growth in china. thatng is going to happen quickly for trade revenues to pileup and see a react celebration of gdp growth which is what markets are hoping for. we've definitely seen some structural shifting. are those likely to be longer-term given the fact that we still have major disputes between china and the u.s.? businesses that will continue to look the on to this and say these are not friendly nations need to move our supply chain. >> i definitely think you are going to see a restructuring of supply chains. do we really think that you're going to see this rebound and industrial profitability and credit extension? the verdict is still out. of risk in the markets. spr

shery: thank you.have replaced thousands of routine jobs in wall street and now they are coming for higher up. a cornell university professor and former head of machine learning at aqr capital testified in washington earlier this month about the impacts of artificial intelligence on capital markets and jobs. he joins us in new york. always great to see you. thank you for coming in. we have seen the changes because of machine learning in finance, but how much faster could these changes occur and what is riding this wave of change? guest: it's data. today, we have data sets that were not available to the three years ago. the only way to utilize these complex techniques. shery: when you say data, how is this different from, say, 10 years ago to a few years ago? how fast has the change been? marcos: we had data from satellite images, credit card transactions, or even data that comes from narratives. reading stories. attracting sentiment from news articles. these data did not exist before and today they exi

shery ahn: live from bloomberg world headquarters in new york, i'm shery ahn. amanda: and i'm amanda lang in toronto. we have the top stories from around the world. the fed is in focus. investors await the fomc decision in just a few minutes. plus a big week for trade negotiations while the u.s. mexico canada agreement could live the cloud over north american trade relations. uncertainty over trade and tariffs are still front and that -- front and center for investors. ken griffin, billionaire, has a lucrative money machine, more so than you might think. check: let's get a quick on the major averages here at and,of the federal reserve perhaps, more importantly, a sense of where it might be headed. saudi aramco trading for the first time today, up 10% on the day. broadise you are seeing markets trading sideways ahead of the action. a couple of stocks getting attention, including home depot down on the forecast. boeing trading on news that the planes might be grounded longer than some had hoped. loomingts are still over the markets and we have a wait and see appr

shery: david, thank you. still ahead, we will have more on the market impact of the interim trade deal later this hour. but up next, another check of how cable is trading with analysis from active trades fx strategist. in london. this is bloomberg. ♪ anna: welcome back to this special edition of the program. u.k. decides brexit and beyond, bringing you the latest from here and london. i am anna edwards. bringing you the latest on the trade deal. the president in the united states. in london, the focus on the election. forecasting the majority of the conservative party has the whole. we had a few results being confirmed, trickling in from all 650 constituencies across the u.k.. themll not bring you all. let's get to sebastian salek. he said we should say we started out with the conservative taking a seat that labor held for more than 50 years. such is the size and the scale. >> quite the symbolic result. it predicts that big, conservative majority. we started to the northeast of england. this was part of the c

shery: thank you.eseext, autostart up trying to do something not even toyota or hyundai could achieve. ♪ shery: let's get a quick check of the latest headlines. apple is returning to the las vegas show for the first time in decades. discussing consumer privacy rather than unveiling a new product. apple has worked behind-the-scenes for years, speaking with partners and suppliers. about stanley is cutting 1500 jobs around the world as part of an efficiency drive. it will also affect staff and sales, trading and research. in new include workers york and london. india's struggling bank is unlikely to reject an offer to raise $2 billion in capital. --y are expected yes bank initially fell on the news but reversed to move higher. since are down 17% november. vietnam's richest man is driving to do something not even toyota or hyundai could do. who is vietnam's richest man and how big of a gamble is this hen? >> he is the richest man in vietnam. he told us in an exclusive interview that he plans to invest $2 b

shery: morgan stanley tesla soar.ld's -- could hit $500,tock may raising the optimistic scenario from a target of $440. this is assuming tesla will be able to sell 100,000 trucks by 20 24 and delivered twice that number in china. paul: aston martin is surging to a sales slump on reports of a bid for the marquee. shares jumped more than 10% and a report that aston martin is grappling with lower earnings pending launch of its first suv next year. still to come, the end of a strike at general motors is likely to inflate the payrolls figure. will update you on the news of the day. stay with us. this is bloomberg. ♪ [ electrical buzzing ] [ dramatic music ] ahhhh! -ahhhh! elliott. you came back! paul: we've got some breaking news for you out of japan. household spending numbers thus hitting the terminal right now. a decline for the month of october 25.1%, or than the expected number. a decline of 3.2% had been expected, and huge reversal from the 9.5% increase that was seen in september. a few reasons for this chief , due

shery: good morning. welcome to "daybreak: asia." ♪ our top stories this monday, china re-commits to the further opening of the economy planning media regulations and lower financing for private companies. more flashes in hong kong as a police officer draws his gun after protesters try to vandalize the chinese flag. shery: the bushfires rage on in australia with at least nine people known to have died. the prime minister says there is no direct link to climate change. paul: let's get straight to the market action with sophie in hong kong. we have the holidays upon us in tokyo. we are seeing stocks date after a three-day drop in the topix in nikkei. flipping the board, checking in on bonds. i want to highlight tenured jgb's. , treasuries just opening on change right here with the 10 year yield. bonds arechmark offering 5th street sessions. aussie shares are sliding for a third straight session led lower by resource players. this morning. we are seeing gains for the korean benchmark. yuan holding steady aga

shery: good evening from new york. i'm shery ahn. sophie: i'm sophie kamaruddin and hong kong.ybreak asia. ♪ paul: our top stories this tuesday. a step closer is the u.s. prepares to fly to mexico. congressional approval could happen this month. morgan stanley wields the

vonnie: shery ahn, thank you for joining.e on these stories, don't miss daybreak australia and daybreak asia. here is something else you don't want to miss. u.s. bond markets tomorrow closing early. 2:00 p.m. eastern. will we see the spread coming in a little bit? romaine: everyone around the world ringing in 2020 with new year's eve celebrations. vonnie: we will be bringing you some of them on this program. romaine: have a great evening. this is bloomberg. ♪ ♪ taylor: i'm taylor riggs in san francisco, in for emily chang, and this is "bloomberg technology." the tech sector dominates in 2019. how will it perform in 2020? predictionsvery under the microscope as the carmaker starts local deliveries in china. we will have the latest. card controversy. though touted as

shery: thank you.rump administration has been looking at chinese tech as a national security threat for some time now and it is focused on companies like huawei, zte and tiktok. a new u.s. agency has a $60 billion budget to help developing countries and businesses find alternatives to companies like huawei and zte. joining us now from washington the statestrayer, department deputy assistant secretary for cyber and international communications and information policy. thank you for your time. this latest approach seems to be the carrot approach where you are trying to convince these developing nations to stay away from cheaper chinese tech. is this and acknowledgment that the stick is not working? mr. strayer: we have sought to work with developing countries to make sure they have reliable technology. this is not a different approach to the matter. independently, we are working with partners and allies to educate them about the risks of 5g. that there can be the potential for vendors of 5g to be controll

shery: he could not let that go.d about that today, saying the stock is so high lol in reference to the marijuana joke. that led to a long protracted battle with the sec. cake justetting a looking -- a kick just looking at that. joe: he had to get -- shery: he had to get on twitter, which caused so much of a problem from the beginning. .e was meeting with jack ma he was talking to officials. he was seen eating steamed buns in beijing. shortly after that, tesla was exempted from the 10% sales tax that only local carmakers are exempted from. you can see the close connection to beijing and how this charm offensive has been successful. executives have tried to get in to china. scarlet: mark zuckerberg tried tho learn mandarin. shery: he has to be cautious. we are still dealing with china. there are sensitive topics you do not want to deal with like hong kong. right now, investors watching this are saying he has good relationships in beijing. this is great for tesla. they are expecting a factory to produce 1000 cars a wee

shery: well said., this is bloomberg. ♪ joe: the softbank vision fund best known for tech startups. our cover story on businessweek brings to light the real environment inside the famous fund. everyone has to read this story about how the vision fund operates. professional asset allocator. this article would not make me want to give them my money. shery: yeah gives you food for thought. economies -- economist at bloomberg did a great job talking to current and former employees. also, flattery toward them, a compliance issue. abnormally high tolerance for risk. we have many examples in this story about his personality but at the same time, the fact he can flip into rage mode if he doesn't get his goals. they are demanding more for his startups. romaine: i thought this article was fascinating. they pointed out a lot of the deputies under him were a source of some concern. >> it's not just one specific manager. vintage walle of a street macho environment. i think scarlet but right, it's like any other fou

shery: we have breaking news.a correction, saying the white house and democrats do not have that usmca trade deal. they reported earlier that there was a tentative deal and that there could be a floor vote in the house possibly on december 18. now they say that there has been no agreement as of yet. the golden age of television is not translated into ad sales. global tv advertising revenue has fallen almost 4% this year, marking the steepest drop since 2009 amid the great recession. for more, let's bring in our bloomberg media reporter from los angeles. it is not that surprising, right? so much cord cutting. we are now seeing so many different streaming services. what can we expect when it comes to these added sales? >> it has actually been remarkable that this is held up for as long as they have they have gone up for decades uninterrupted. for many years now, even though the size of the audience watching live tv has been in decline come of the ad sales have continued to go up because tv networks have charged high