we are joined by stephen engle, bloomberg chief north asia correspondent. est now that u.s. mca is out of the way. stephen: and looks as though he can now focus in or zero in on china. that was the biggest hurdle given the legacy issues. nafta underevamped his belt and undergone negotiations with the eu, it revamped course of free trade agreement with the south koreans, he has convinced the japanese to enter into negotiations so it looks that he has cleared the decks to .egotiate or take on china negotiations perhaps a little bit further down the line because even donald trump on monday said now is not the time to talk. china has said they do not want to talk either with a knife held to their throat. what is the next step? david hensley said the next step could be with donald trump and these victories on the trade front except for china, perhaps create a: russian of others who want to see rectification of the long-standing trade issues with china over the last few decades. that could be the next step for the white house. thank you, stephen engle with the lat

our chiefe have correspondent stephen engle, with the ceo. stephen: thanks.re at the hong kong fintech an insurance jong ceo and president of the international business. mentioning this joint venture with japan, how to use see this online-only chinese insurer branching beyond the borders of china, and what is your main priority? years ago,ed five in china. the first online insurance company in china. we started international expansion in december of last year, and our strategies are straightforward. we want to act on our technology background, so we can better serve customers. we have cooperation with softbank, and also we have been a technology provider for a leading insurance company in japan. stephen: how do you see that, using that japanese cooperation into other markets, like southeast asia? to ae have been talking ot lot of players, with a lot of potential opportunity for the overall asia and north asia market. right now, asia is our only focus. stephen: you are mainly an insurer. health care, consumer finance. how do you see, in addition to premiums, h

speaking tor, stephen engle at the world knowledge for. is getting underway, and the first is netflix, who releases numbers on tuesday. last quarter subscriber growth was just one off. here's the u.s. director of research, pulse wiener -- paul sweeney. how are we doing? >> this is definitely an anticipated earnings release, it's always an event with netflix releases earnings, given how the stock has performed over the years. investors will be focusing on the net subscriber number, the metric that investors focus on as opposed to eps or revenue. how many subscribers to they add globally? this quarter they are looking at about 5 million, a number they could hit or exceed. as we mentioned, last quarter they missed on this important metric and the stock took a big hit. >> took a beating. right now, the stock has been taking a beating, as well. we have seen the biggest slump since 2016. some analysts are seeing opportunity when it comes to netflix. is it from a valuation perspective as well as an underlying growth driver? >> it is tough to make

stephen engle there at the world knowledge forum in seoul. look at these asian markets. the nikkei 225 has been trading in tokyo. the topics falling 3%. elsewhere we are seeing that slightly stronger yen. the currency of effect. let's look elsewhere around the region. i down 2.25%. elsewhere, australian trading lower as well, new zealand, the longest losing streak in seven years. this is bloomberg. ♪ shery: a beautiful picture of the harbor there in hong kong, not reflecting what the equity markets could be doing in asia. the msci asia-pacific falling more than 1.5%. take a look at stock markets across asia, the nikkei falling more than 3%. the topics falling more than 3%, the biggest drop since march. kospi seeing the longest losing streak in four years, since 2014. the asx 200 is losing almost 2%. let's get a quick check of the latest business flash headlines. beent a cost of 4.2 dollars, will take its share of bmw brilliance automotive from 50% to 75%. the contractual term of the joint venture would be extended to 2040. bmw wants to increa

stephen engle is following this. the meeting was more fruitful. mike pompeo has made four visits now. the last time was in july. he spent one night in pyongyang, and he left the next day without much. a little more animosity following the hugs of the singapore summit. north korean media, the day after he left, they called the white house tactics gangster style, so there was ill will. this time it seems more jovial. both sides issuing statements saying the talks were fruitful. this is what donald trump tweeted this weekend, saying mike pompeo had a good meeting with chairman kim. progress was made on the singapore summit agreement. i look forward to seeing chairman kim in the near future. officials behind the scenes telling us they are trying to accelerate working level talks to make a second summit possible. kim also put out a statement saying they were productive and wonderful talks, and he expressed his gratitude to donald trump for the sincere efforts made by donald trump. both sides since july have bickered about the pace and steps needed towa

haidi: stephen engle, thank you for that.he head of china bank ratings for that perspective. great to have you with us. analysts have been warning of potential weakness in chinese banks. is that what you are seeing as well? >> from the quarterly earnings, we've actually seen margins stabilize somewhat. probably the reason is also the prior reductions that has alleviated some of the funding concerns within the market. concernsne of our key on the operating environment is the fact that there isn't enough capital to support the kind of growth that the authorities might want to see in order to support the slowing economy, and ratios,ern is capital given that the chinese banks or even the larger state banks, they are barely making enough profit just to sustain their current pace of growth, and given that we've got the big , there'sese banks still a large amount of capital required for them to make the minimum requirements. these banks are going to need a lot more external capital to comply with those minimal requirements, unless t

let's bring in stephen engle, joining us from hong kong.ow much pressure china is facing. >> absolutely. , senior out the calvary officials in the chinese government have come out in support of the market. we heard xi jingping saying unwavering support for the private actor, but also the chief economic advisor saying the government values at healthy stock market. the bank and insurance regulator saying the slump in stocks doesn't reflect fundamentals and even the central bank governor saying the pboc is studying measures to ease measures. they called it a sissy or international situation. it is exacerbated by this stocks slump, losing more than $3 million -- $3 trillion. 30% thereabouts since the january high. we are seeing a rally -- can it last is the question. we are getting news from the stock exchange, they are both pledging that they will help lift the companies and resolve their share pledge risk following what they said on the financial markets on friday. it will also encourage major shareholders to raise holdings to boost market co

stephen engle, bloomberg news, hong kong.: victoire yet secrets secret owneroria's is the worst performer in the s&p 500. they are struggling to adapt to e-commerce and changing consumer tastes. its struggles have allowed a number of startups to steal market share in intimate apparel. one of the most successful is thirdlove. now one of the fastest growing consumer companies in america. as part of a series looking at retail disruption, emma chandra spoke with the founder and ceo who says technology is at the heart of thirdlove's success. >> we are a direct to consumer e-commerce brand that makes it -- very comfortable bras and underwear. going set the genesis was into a victoria's secret store and not liking their offering. how have you disrupted what they do? >> a few ways. one is focusing on product quality and a range of sizes. we have 70 sizes and the secret offers about 36. we have more than double including half sizes. i always say, shoes have half sizes, why shouldn't draws bra's?she is half sizes, why -- shouldnt bra's

stephen engle is there for us. >> i think the dialogue has been pretty much the same of what you areg down in bali. towards bit more technology and the future. want and center of discussions. panel.be moderating a definitely, we are talking about it here. we will continue the conversation with the director of the international trade thank you -- center. thank you for joining us. have you calculated the damage this is causing? big drag ont is a growth and investment. it is on the side of risk rather than opportunity. especially those getting out of the financial crisis. finally, we are starting to see a sunnyside to the economy. they do not like it. it is a time where they need to grow. they are lining up so is living the heart and minds of the world right now. the u.s., china or others? we are discussing about the interconnections in the economy. technology is a huge driver of interconnectedness in our economy is and is seen as very promising. this interconnectedness that technology is driving needs to be managed. it needs to be reflected in a better dialogue. ?> what will be the fal

our stephen engle is standing by at the world knowledge forum in seoul. minutes' time, we are going to speak to the head of the six party talks, ambassador christopher hill. we will discuss the prognosis for another summit between donald trump and kim jong-un. the last one four months ago in singapore. he says did not necessarily go the u.s. way. we will discuss the u.s.-china trade spat as well coming up in a few minutes. shery: that is it from "daybreak: asia." we look ahead to the start of trade in hong kong and shanghai. this is bloomberg. ♪ a.m..is almost 9:00 welcome to "bloomberg markets: china open." >> equities higher after a volatile session in new york. >> hong kong developers are in the spotlight amidst warnings the market could slump. bankers are gathered as clouds gather. we will be live at the imf meetings.

chief correspondent stephen engle is following this latest addition. they will seek to up to one billion u.s. dollars, another tencent spin off, this in the music business. the music business has seen a bit of a turnaround with the likes of spotify. tencent music is a profitable company. it has three main businesses, one similar to spotify, a karaoke feature, i think called " we sing," a livestreaming of performances. a three-pronged approach to the music business. investors into the music business in new york, which has long been plagued by piracy. it mirrors the efforts of those like spotify, which is a competitor. -- as welled spotify as tencent music helped music sales growth at the fastest pace since 1990's. warner music, sony music entertainment among the big first initial investors in tencent music. it again shows more optimism from chinese companies listing in the united states. the rush continues. we have seen chinese companies raising $7.4 billion on u.s. exchanges this year alone. almost double the amount last year. >> we saw tencent>> re-an

stephen engle. her assets, second quarter earnings were a beach, the share price up over 4% in the session in mumbai. this is bloomberg. ♪ ♪ >> a quick check of the latest headlines. is going to spend $150 million to build a robotics factory in shanghai to capitalize on rising consumer demand and tech aspirations. construction should begin by the end of 2020 and annual capacity will be around 100,000 robots. the shanghai facility will also have ai and machine learning research centers. >> we are number one in this market, we have a great team, and now we are taking investing it to really shape the next generation of manufacturing, and we are building the growth super factory. the world's most valuable -- is in $10 billion in market cap and raising concerns in china. is $2.8 billion, and the company has benefited from the luxury side of things, china's economy is slowing down. universal pictures has carved up the weekend box office with "halloween," the return of michael myers. almost $68 million whi

stephen engle joins us from hong kong. ication of how much pressure beijing is feeling from the trade war? stephen: absolutely. talked as well about the calvary coming to the rescue of the stock marketl also, the big. wigs. are not talking up the economy. they are talking up the private economy as well as the stock market. the international situation is definitely at the forefront for the beijing officials as a trade war intensifies. it has its gdp report last week. they call it the severe international situation. didn't use the words. trade war, but they are feeling the pressure. and xi jinping come over the weekend, through state media -- pledging unwavering support for the private sector. he said it is a consistent policy of the party's central committee. they have this severe international situation, which is having ripple effects, ramifications for the stock market, which is $3 trillion in january,p lost since down 23% year to date. gdp growing at the slowest pace since the global financial 6.5%. at it all comes at a t

let's go to stephen engle.of these concerns the cycle has reached a peak, what are we seeing? overen: is the super cycle ? that is what we have been asking for a long time. but the storm clouds are looming. we see third quarter preliminary operating profit beating expectations at samsung at 17.5 trillion won with the estimate at 17.2. withng has beaten operating profit sales in line won.estimates, 55 trillion the years of consistent growth in semiconductors it is being predicted to slow down. samsung electronics was boosted rises inr sustained the third quarter, but since then we have seen them dip off and even touching a one year low. macron, another competitor out of the united states, has warned ,f sales and profit decline because of slackening demand. for samsung, they had a weaker won in the corner here that held exports surged for south korean chips. that boosted kind of, -- time next, samsung. apple using oil, oed screens, boost the samsung's display. looking forward, chip division weakness expected, cyc