let's go to hong kong with stephen engle. what is the latest? stephen: tens of thousands of protesters are defying a police fromand they are marching the eastern part of hong kong island to central and beyond, perhaps even as far as the liaison office of the chinese government. ban are defying the police and already the police have responded in simultaneous coordinated protests in other parts of the city comedy have responded in a more remote neighborhood with tear gas, and they are clearly showing signs they are not going to tolerate this illegal assembly. still, these are not just young radical protesters behind me. these are families. these are grandmothers. young and old are here and they have been culminating over the targetingmonths, october 1 because of what is happening today in beijing. thes a national holiday, 70th birthday of the founding of the people's republic of china. the protesters want to send xi jinping and the chinese leadership a message that we want our promised autonomy to last through the full 50 years post and over. -- ha

joining us is stephen engle.ferent kind of commemoration of the seven you anniversary of the founding of the people's republic of china in hong kong where we have had four plus months of unrest on the streets. the protesters are not happy with the arrangement of the china that is 22 years post handover. they want their level of autonomy under the basic laws to remain -- laws to remain that they believe has eroded. they want to send a message to the leadership in beijing on october 1, that they don't like the current state of affairs. they want the old status quo to be upheld. now, there have been battles across the city, including here at the bay within the last hour. this is an entrance to a subway station at causeway bay, one of the main shopping areas of hong kong. this some of the highest rents, retail rents in the whole world, and it was set a fire, and we were just told police are on their way. this is still not settled with no solution in sight in hong kong. guy: thank you so much. stephen engle, fantastic

that is correspondent stephen engle in hong kong.e are still with the oppenheimer asset management chief investment strategy -- strategist. investcult time to domestically. also a difficult time internationally. you see what is going on in china, apart from the tariff war. what are you advising oppenheimer customers as to how to invest in emerging markets and china? john: i have been in this business over 36 years. it is not that i did not expect to live this long. i did not know how fast it would happen. there is always trouble. i can't remember a time -- save newspapers for a couple of weeks. look back. headlines always say there is trouble. you can't let it freeze you. you have to look at the cyclical trends that remain intact, the secular trends, the longer-term trends that are available, and look for opportunities when what might have been too expensive a few weeks ago gets cheaper to pick up. that is the way fortunes can be made. not guaranteed, but it is the way they often are made, by buying when things are at discount. vonni

stephen engle joins us from outside the admiralty subway station. amaticrough another 72 hours in hong kong. stephen: that's right. there are irreconcilable differences between the hard-line protesters in the government. the government late last week of voting emergency powers to ban facemasks but protesters showed up this weekend with facemasks, defying the emergency ordinance that dates back to 1922. there are other measures the government can invoke under the sweeping emergency law. so far they haven't. this is the first up and it didn't do much good to contain the agitation of protesters, as any businesses that had china in the name or perceived ties to china were attacked and vandalized. late last week, when i saw protesters light a fire in front of an entrance way to the subway system here, a protester came up to me and said, why are you calling it vandalism? well, it was vandalism regardless of what side of the political spectrum you stand on, but she said it was retaliation for some of the steps and closures they took. nonetheless, it was van

i am stephen engle, and welcome to this special, "hong kong on edge." it calls itself asia's world city, the semi autonomous gateway to china, and a key international finance and commercial hub, and that is coming under increasing threat multiple fronts. you have the political turmoil, the u.s.-china trade war, and a widening wealth gap. hong kong is a world's most expensive city with the least affordable housing market. when he protesters feel left behind financially and -- many protesters feel left behind financially and politically. that is wreaking havoc on the economy. fitch has cut credit rankings. small business confidence is at a record low and the gdp is heading for a possible recession. >> i firmly believe that for a lot of these young people, livelihoods, economics, politics, it is important but that is not the primary drive. the primary drive is that they long for a more balanced one country, two systems. stephen: we will try to answer what went wrong andcar path for. we have assembled some of the more pivotal figures in hong kong's journey

stephen engle in hong kong. not the anniversary president xi anticipated. now we go to kevin cirilli in washington. it seems like every time i open a newspaper there is an extension of the impeachment inquiry. night the new york times reporting president trump had asked australian prime minister scott morrison about looking into the origins of the robert mueller investigation. "new york times" drawing the similarity between that call and the call president trump made several months ago with the president of ukraine. all of this comes as the house intelligence committee has been staying in session while the rest of congress is out of session to continue with their investigation into their impeachment inquiry. if that was not enough, we are now learning rudy giuliani, the president's personal attorney, has been subpoenaed, and in addition to that they are looking at the state department and mike pompeo, as well as others to get documents as well as other information to investigate the origins of that call. the white house is defending president trump, saying

joining us with more on the ground in hong kong is stephen engle. the pictures are quite stark. round in the last 12 hours? stephen: a very different commemoration in hong kong for the 70th anniversary of the founding of the people's republic of china. hong kong does belong to china riotousave been in this situation -- i should not use the word riotous because protesters say they are not rallying, they are demonstrating for what they have been promised -- a high level of autonomy, which they say beijing is starting to infringe upon. i wanted to set the scene here. there been running battles all day long here is some graffiti -- liberate hong kong. there has been pitched battles all day long. 31 protesters have been hospitalized so far. does are in critical condition. one is in serious condition. we have confirmation from the police that a police officer did shoot one protester with a live round of ammunition and hit them in the chest. we do not know the person's condition. thislls you how far protest movement has gone and how far the police have gone to rappel it. this just withi

stephen engle has been following this target from the very beginning. t, how much merit do we give to this? stephen: this has kind of been in the works for quite some time according to sources i have talked to. she was even caught on audio saying she offered to resign sometime back in beijing refused that overture from carrie lam, so this is obviously what protesters from the very beginning have wanted. wanted, beijing has not to necessarily, you know, give credence to the protesters demand or make it look like she is stepping down because of the increased violence here. now, the financial times is reporting that beijing is drafting a plan to replace carrie lam with an interim chief executive to possibly be installed by march. which of course is the date of the national people's congress. again, beijing wants to make sure that the situation here in hong kong is not as volatile so as not to give the impression that they are acquiescing to the protesters demands. what we are hearing from the financial times to report is the replacement should not necessari

stephen engle joining us from hong kong.lso there from beijing, covering protests and the 70th birth celebrations. weworks pulls its ipo but faces a funding squeeze and a spring deadline to come up with the goods. this is bloomberg. ♪ matt: welcome back to "bloomberg markets: the european open." 54 minutes into the trading day and looking at a slight loss on the ftse. very little change, but when you contrast it with the gains we see in germany and milan, .7%. ipo,k has withdrawn its capping off a fund-raising effort that cost the ceo his job and jet. to company faces a challenge raise new capital as it could run out of cash as soon as next spring. for more is our bloomberg opinion columnist in berlin, kris bryant. what happens now is the question for wework. >> it is going to be all hands get the cashally burned down because right now, the company is facing a difficult situation where they've got money going out the door and at the same time, they haven't got new money coming in. they were hoping to raise 3 billion in equit

let's get to our chief north asia correspondent, stephen engle.m made a visit close to where you were or are right now. what is the latest? she was right here just a few minutes ago, she walked past. she was visiting this islamic mosque this morning, she came in at 11:14, so within the last half-hour. she met with religious leaders and we are hearing that she apologized to the islamic community because yesterday, as the police did their dispersal operations where the protesters were here on this road, they used the water cannon truck with blue dye and some of it was sprayed into the mosque compound. so carrie lam and the police commissioner, both of them just walked by cama -- walked by, and apparently they apologize. we just had a media scrum with some of the religious leaders at the bottom of the mosque. all we could hear was that they were appreciative of the carrie lam and the police commissioner coming to apologize. obviously this is a tense moment as well because we had some people who voiced -- or shouted, i should say, their displeasure in

bloomberg television again has exclusive access to the events and stephen engle is there. ? the mood stephen: we have so much to talk about. let's get right to it with our first guest this morning from the jp morgan cfo -- asia-pacific cfo treasurers forum. we have the global head of corporate banking. thank you so much for your time today. what should be foremost on investors minds as we approach 2020? lots of volatility are in the world. >> it will be -- volatility out in the world. >> low unemployment. not being able to pass on these extra costs. the margins are squeezing. high corporate debts. altogether, some weakness is there. then, you get the trade war, which has hurt growth both in the u.s. and china. down thereally slowed sentiment in the world, the willingness for companies to invest and to do capex. growtht will take .5% of off global growth. stephen: they have been optimistic. has beencoldwater poured on that. a new report saying the deputy level talks you'll but no progress. those reports are unsubstantiated, however, because they do not have an attribution to

the man on the spot is stephen engle. what are we looking out for?: we are waiting of course for the boj rate decision later today. most economists saying it is not going to happen. the fed overnight did cut rates. it was a hawkish cut. eventokyo cut rates further. let's get to our guest, ed rogers, ceo of his namesake advisory body. so, why are we here talking about something that is not going to happen? is anything going to happen? are they going to change the verbiage? >> there is always a strong element of uncertain t-1 the great and good get together for a decision-making process. we don't think much will change. how things will change not for the future today but how things change going forward. stephen: did jay powell give kuroda a gift with less of a hawkish cut? this think the backdrop to is the u.s.-japan trade discussions, of course the u.s.-china trade discussions. i think the fed move reflects certain domestic issues, things you might argue are a little bit better here. there is less reason to move. that symbiosis between the u.s. and ja

our chief north asia correspondent, stephen engle. thank you for joining. to reopen after the golden week holiday. we will see what investors now have to grapple with from protests to the latest news in the trade war. ♪ paul: this is "daybreak asia." shery: chinese and hong kong markets open in under an hour after holidays. there is plenty for investors to digest with trade talks in washington and the ongoing protests in hong kong. our next guest invests in both markets. jennifer lai is a portfolio manager. they have a lot to catch up with. the violence in hong kong. not to mention the trade headlines. what is most important for chinese markets? well toarkets respond certainty. any visible progress in the trade talks this week would be very positive for markets. going into these talks, we have seen positive signals from both sides. earlier, the u.s. agreed to postpone tariffs that were originally scheduled for october 1. china had also been buying agricultural products from the u.s., including over 2 million tons of soybeans just in the past month. to me, t

stephen engle is on the streets. give us an update. n: we are in the tip of the peninsula here. this is one of the biggest and busiest shopping districts, usually full of mainland tourists but those numbers have dropped off after the 20th weekend in a row of violent demonstrations up and down here. we have an unauthorized protest march yesterday which turned violent. you can see the aftermath of the violence behind me. here is the npr station. similar types of graffiti, free hong kong and no hate without no region -- no reason in english and chinese. more graffiti on nathan road. we burn, you burn with us. that is a common mantra throughout this for months. we had a number of different petrol bombs thrown by protesters. oftentimes targeting companies with china linked or perceived to have taken sides against the protesters. we had xiaomi's store, the mainland chinese mobile phone operator, one of their stores was attacked here as well as a snack marked. the chinese medicine company here had a shop satellite as well as you should annoy y

stephen engle is with us. how much should we really at the moment believe this report? ephen: there is so much going on, in this developing five-month-long story almost. the story from the f.t. saying beijing is possibly replacing carrie lam, but we also have a stimulus package from the finance secretary yesterday. we also had the murder suspect being released from hong kong prison. he is in legal limbo. will he go back to taiwan? we will get to that. later this morning, you have the formal withdrawal of the extradition bill, which they haven't formally done yet, but all this happening today. story, there is the footage of his release. beijing, the main story, possibly drafting plans to replace carrie lam. being moved up if there will be an interim ceo replacing carrie lam by march, as the story indicates, when the national people's congress is held in china. that would be a key date. financial guys are perhaps on top of the list. served as theho head of the defector central bank in hong kong, perhaps at the top of the list. as well as henry tang, who had a failed bid at

stephen engle in admiralty in hong kong. let's check in on first word news.u: we start with the latest economic data, u.s. payroll numbers showing worrying signs, job losses in manufacturing. prominent factories contracted by 2000 positions when economists were expecting a gain. this is a sign of the beating the u.s. manufacturing is taking in the global slowdown and the trade war. boris johnson will refuse to resign over brexit and is preparing to challenge the green to fire him if he fails to win a new deal. -- the queen to fire him if he fails to win a new deal. he will not sit down if he loses a vote of confidence in parliament. he says brexit will happen. tore were mp's that voted prevent that in the case of a new deal exit. china's foreign currency holding dipped with official figures below $3 trillion. china boosted its reserves for a 10th straight month to $53 million -- current value of $93 billion. in north korea, they are at odds with the nuclear talks with the u.s. the first meeting in eight months was described by washington as good discussions w

david: good stuff, stephen engle, our chief north asia correspondent from japan.ading to india. we are looking at the market open. 56 minutes 15 seconds. we have a set up of the friday session. davina is with us. >> before i start off wishing everybody a very happy there molly, all of the viewers and don'tys, hopefully -- i see that happen in today's session, but from the index and market consolidation, it is something will be watching out for in the next few days. hopefully the nifty is able to take on the 1700 mark. that's what is predicted. had more's session consolidation taking place. down .2% in the 50-50. it closed under 11,600. banks were a big drag on the back of the corridor that made telecom stocks drop and bank stocks have exposure to the telecom company dropping heavily, especially sbi. it was the biggest drag. in terms of the overall mood of the markets, still not too much in terms of excitement, but there will be volatility, considering we are in the midst of the earnings season. rishaad: you mentioned telecom, something like $13 billion in past due

and subway stations vandalized, and bank atm's knocked out, our chief north asia correspondent stephen englens us from outside of admiralty substation on monday. stephen: it was a massive backlash from the more hard-core element of the protest movement against what the government did late on friday, and that was imposing emergency orders on hong kong, specifically banning facemasks. but then, the protesters turned lull,saturday, a bit of a and on sunday, they turned up with masks and also ratcheted up the violence against companies, against the police, and it was the 18th consecutive weekend of violence. perhaps even the most violent weekend we have seen. it has been 120 days since that fairly peaceful first million person march back on june 19. there is no end in sight right now. we are hearing there are calls for more protests today, a public holiday in hong kong, in 18 different districts in hong kong. as you can see behind me, the admiralty station is completely closed today. the entire network citywide will close as of 6:00 p.m. today. yousef: you can argue another metric for whether th

our chief north asia correspondent stephen engle is at the event for us. going to expect today? >> good morning. great time to be in shanghai, thatwith the nba fracas just started to unfold yesterday in the day before, and now, of course, the u.s.-china trade talks set to resume in washington, d.c. and we are getting that report that the two sides in deputy level talks have not made necessarily much if any progress. where do we stand right now with global growth and global economic outlook? we will explore that, maybe not as much on the nba -- that is sport -- but generally, of course, the background of u.s.-china relations is the sentiment that is being expressed in this fracas with the nba. we are going to have our guest lineup. it is star-studded at j.p. morgan. we will speak with jp morgan's global head of ranking. also jp morgan's chair of global research. she was named by american banker as one of the top 25 most powerful women in finance, and also later this morning, we will speak with jp morgan's china ceo. so much.ank you we will be back with you

our chief asia correspondent stephen engle has the latest. heard from the financial secretary talking about the potential for even more stimulus. how bad were the numbers? stephen: if you look on october shops have been closed all day long. this is some of the world's most expensive retail property, and these shops have to close down. if they don't get rent relief, they will be suffering, obviously, so this is being seen across the city, and the perception, of course, being broadcast around the world of hong kong aflame, obviously trickling down to people arriving or lack thereof, and the numbers are stark. retail sales falling the most on record in august. the value of retail sales down 23% year-over-year in august. also visits from mainland china. keep in mind, the majority, the bulk of people who come to hong kong are from mainland china. especially during this particular golden week -- there's two golden weeks in china, this week for the national holiday and the spring festival, which is the lunar new year holiday. that's when hong kong ge

turning us from hong kong is stephen engle, who has been listening in on the analyst calls.in hong kong. it looks like they will open down here as well. which part of the results are investors most disappointed with? stephen: take your pick because they missed the estimates for profitability across the board. they have removed the target for profitability on return on tangible equity. he isard from the cfo, now speaking on the conference call that started about 12 minutes ago. one of the key concerns that analyst had= was the drag that hong kong -- the analysts had was the drag that hong kong would cause. pointing out the results out of asia remain robust, despite the challenges in hong kong. also, we heard earlier on the call from the interim ceo, saying hsbc is committed to supporting hong kong and the u.k. through the current period of uncertainty. he is referring to the brexit challenge we were just talking about. there is this profitability issue that they will need to address, as well as restructuring that is perhaps coming down the pike. they haven't addressed it yet,

asia: our chief north correspondent stephen engle in hong kong. thank you so much. turning back to earnings, last week, revenue at the six largest u.s. banks climbed as they sound better than expected gains in trading. we will get a look in at how european banks are faring in the falling rate environment. manus. revenuenalysts expect for the investment bank to declined. we will be watching updates for the money laundering scandal. the earnings from rbs. friday, barclays is on the slate, extending his hat trick of trading. -- is also set to report. nejra. nejra: coming up on bloomberg, we speak to the s.a.p. cfo. do not miss that interview just after seven: 30 a.m. london time. this is bloomberg -- 7:30 london time. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." i am nejra cehic in westminster. manus: i am manus cranny in zurich. i am here for the -- breaking lines coming across the bloomberg on aramco. is thee saying there acquisition closing in the first or second quarter of next year. they will add one million barrels of refining capacity. it is

stephen engle is tracking the numbers. it is down nearly 3% at this juncture. what do you think the market's most contentious issue is? thehen: they missed across board on all the different numbers. also pretext profits already missing expectations. it was worse than that. a number of different headlines are coming across. you mentioned that the profitability goal of them saying they are going to drop this target return on tangible equity over 11% in 2020. it no longer expects to reach that target. there is also a statement saying the bank plans to simplify operations to rebalance capital away from lower returns. it is warning of significant charges after across-the-board misses on profitability. it is also saying they will announce new financial targets at or before the full year results. these latest sets of results are coming for the third quarter. also, the hong kong outlook, the economic outlook. we got another blog post from the financial secretary, saying we could be in negative territory for gdp for the full year. quite a dire situation, given the prote

us.more stephen engle joins great to have you with us. take us through the report.ell us what implications this might have for protesters. >> this should not be too much of a surprise. i would guarantee you beijing leadership has been drafting a plan for succession in hong kong, whether they carry that out or not, but more than four and a half months now of unrest on the streets, 20 straight weekends of violence, pretty much something has to be done. the financial times is basically citing unnamed sources and saying a plan is in the works, or at least being drafted, that would put in a new ceo as early as march. chief executive, not ceo, of hong kong, by march. march is key. that is when china holds its annual session of parliament, the national people's congress. plan wouldn on that the situationtil in hong kong has been stabilized. the beijing leadership obviously does not want to give the impression they are backing down from the violence here. thank you for that update from hong kong. trade, while tensions between china and the u.s. remain high over hong kong, e

stephen engle here to preview the bank earnings. more cost cuts on the way? t is possible according to bloomberg intelligence. could be upwards of 10,000, job cuts, not necessarily announced today but it could be in the pipeline. london,nt banking in retail operations in france and people familiar saying hundreds of workers in the middle east, north africa and turkey could be asked -- axed. that is one side of the story because the chairman believes the bank needs to improve return on capital and cost cuts are likely. they got a new intern ceo -- interim ceo. the previous one was ousted by mark tucker, john flynn. he embarked on operation -- project oak which was a cost-cutting procedure. this additional job cuts could be an extension of that project which was launched by john flint . 30% of the bank's capital was generating returns of less than 1%. this goes hand-in-hand with the search for a new ceo. will we get any guidance on whether the interim ceo in august, will he be named the permanent ceo? he has been angling for that job as he has embarked on are ta

stephen engle is here to give us a preview of what to expect. >> likely to get the results midday ander this afternoon. cost cuts is a continuing ongoing process. hsbc, not too long ago, was a negative jobs. now they are in positive jobs. the ratio between income and expenses. if revenue is not growing as fast, you need to cut down on those expenses. and that is what chairman mark tucker continues to do. ceo replaced the ousted john flint. in august, john flint was not likinghe job to tucker's . will he become the permanent ceo? it sounds like he is taking mark tucker's marching orders to heart and we are expecting perhaps more job cuts, as many as 10,000 job cuts, including investment banking in london. there is that thing called brexit that might be going on. retail business in france, which they might be getting out of. hundreds of workers could be let go in the middle east, africa, and in turkey. tucker says the bank needs to improve on the return on capital and cut costs further. projectnt started this which was a cost-cutting round. it looks like that will continue through the i

stephen engle was on the streets this morning.e lam's address last week, it did very little to appease people who turned up. >> that's right. right here on the street corner of cameron road and nathan road is where some of that violence last night culminated, including -- i will step back. you can see the subway station , the stationup closed yesterday, closed again right now for the morning commute. this is the only graffiti we can show you that is not filled with profanity. we are on this corner because the islamic mosque, kind of the epicenter of some controversy yesterday. the protesters did not unleash their ire against the muslim community, however, the police, when they brought in their water sprayed toks, disperse the protesters, and some of that water got into the mosque compound. that anchored the local islamic community. the local islamic community. you can see the blue dye all up and down the road here. people are on their way to work right now. the morning commute is going on. however, none of this -- the stop lights

stephen engle is standing by with the former bank of japan policy board member. >> that's right. are expecting the boj rate decisions, then a press conference with corroded. no changes expected. maybe a change in some of that forward guidance is what they will provide. after the a few hours fed had that rather hawkish rate cut. let's bring in our guest to will over the numbers that just came out. we have our guest, thanks so much for joining us. to the strong numbers from industrial production compared to august change the narrative of what we will hear today? >> i don't think so. this ip data is fluctuating. the machinery order is not doing well. inhave signs of weakness terms of business investment. consumer sentiment is fluctuating. overall, the economy is very good shape. >> was there a pickup ahead of the vac increase? there have been government countermeasures. >> exactly. thehe last few times japanese have raised the vap, into recession. they did artificial stimulus. >> this time, the government spot desperate lots of money. that's why you don't see any panic. people are q

alix: joining me from tokyo is stephen engle. walk us through what we learned, and what it means for the lower for longer conversation. stephen: there really were no surprises from kuroda. ,e were expecting them to hold and may be and the u.s. fed did a little bit of a favor by having that hawkish cut. it took a little pressure off of the boj. he said they have further room to ease if they have to, if the momentum if price inflation starts to wane. they do have tools, according to kuroda, to ease further if they have to come about where is that momentum being lost? he says it is mostly external at this time because there is no resolution yet on the u.s.-china tiff, if youade want to call it that. domestically, he says demand has held up. the economy has steadily started to recover a bit, even despite the october 1 increase in value-added tax, so overall, kuroda pretty much pushed things down the road, saying we could possibly ease further, but not right now. we are going to take away the verbiage that says we have a spring 2020 de

paul: chief north asia correspondent stephen engle in hong kong.dent says he will introduce sweeping reforms to labor laws and open up the economy to foreign investment. our exclusive interview, just ahead. this is bloomberg. ♪ shery: we are seeing the nikkei falling by more than 2% and the topix mulls matching those losses. this is the second consecutive session of falls for the japanese stock markets with the nick a month. this coming off of the japanese yen being at the strongest level against the u.s. dollar in about a week. breaking below that 107 level at the moment. those losses in the japanese market accelerating at the moment. we are seeing the asx 200 losing more than 2%. the kiwi stocks losing for a second consecutive session. let's turn to our bloomberg exclusive. the indonesian president aims to deliver on some of the major reforms investors have been demanding. among the obstacles is the nation's labor laws. bloomberg editor's and chief -- andor in chief spoke to him asked him if he will actually reform those labor laws in the six was

stephen engle gave us reports from the street.ceful, where our greater china editor joins us in the evening of october 2 in hong kong. what change today, karen? a prettym, it has been busy couple of days here. today, there was a cloud hanging after some of the images we saw yesterday. police really underscoring what a violent day it was. they held a press conference and said they fired more than 1400 teargas rounds yesterday alone. that is roughly 50% of the teargas they fired over months of protests, so it was a really big day. it really functioned almost as a split screen. ing had xi jinping oversee one part of the parade, and then you had protesters in hong kong, including the first shooting of a protester with live ammunition by a police officer. so really, contrast, and it has left the city on edge, wondering if this violence will get more people onto the street or if it will taper off? tom: let's move forward to this weekend. would it be a weekend where reporting would guess it would be protesters alone, or will the entire c