yvonne: our chief asian correspondent stephen engle in taipei, thank you.e east show sunday and all through programming on monday morning. you don't want to miss that. haslinda: an exciting weekend. that is it for this edition of "bloomberg markets: asia." east"berg markets: middle is next. this is bloomberg. ♪ taylor: i am taylor riggs and this is "bloomberg technology." coming up, apples shine. the company keeps hitting records plus, a new -- the food delivery business is getting crowded. grubhub may be looking to consolidate. and, sales for in the sky. it is no news

our correspondent stephen engle is there.sounding victory over the weekend for the incumbent president, winning a second term, beating her challenger. in the legislative council, we saw the opponent gained a little bit more ground. the economy here in taiwan has been doing very well. does it have the legs to continue its momentum into 2020 with the incumbent winning? let's get some perspective from the man who owns the hotel we are in right now. he is the executive chairman of the hotel group. thank you so much for having us here at the regent. the election came down to china relations and the economy. you are quite bullish on the economy. do you think that had a large sway? >> yes. most people treat hong kong as the reason why she had such a huge victory. government has switched to a very progrowth policy, coupled with u.s. china trade war that forced a lot of taiwanese companies to relocate their facilities back to taiwan, this has actually accelerated the economic growth in taiwan, at there were 25r, billion u.s. dollars i

tom: stephen engle, thank you so much for reporting from hong kong. hour from hsbc, and we continue this our with a gentleman with decades of experience. his name is alan ruskin of deutsche bank. he is quite expert in a number of things, including foreign-exchange. let me start with the wheelhouse of currency as the litmus paper of a system. what does it mean we are seeing stronger dollar, you're a through 1.10 -- euros through 1.10, and offshore renminbi weakening out, does that indicate a financial system acting normally within this financial crisis? alan: there is no obvious normal in this situation. what you are seeing is revealing in that the dollar is outperforming the euros. that says that investors prefer the yield and liquidity you can get out of u.s. bond markets, and at this point in time they could look to japan and the yen, but looking close to china. the u.s. dollar is the natural beneficiary. francine: does it mean that supply chains have shifted? does it mean that some of these companies will be more global than a year ago? troy: that i

now let's bring in our chief north asia correspondent, stephen engle. he joins us from hong kong. stephen, the latest is the number of deaths is rising. can you tell us anything about containment? is it working at all? stephen: containment is the big issue. you have to contain it before you can get any kind of improvement on those numbers that we seem to run through every single day. yesterday when i was sitting at talking to you, francine, we saw a day over day jump of 29% of deaths and confirmed cases. today, it isy another 25% of deaths and confirmed cases. the numbers, because of the long incubation period of up to two -- s, also the symptomatic aenzymatic characteristics of this virus is making it harder to contain. but again, as you just said, carrie lam saying -- erring on the side of caution, the chief executive of hong kong, saying schools are not going back to school until march 2. fromboth let out a yippee my 11-year-old daughter and a sigh of expiration from my wife. families across the city do not know what to do with their kids for the next few months, but that is mak

taylor: stephen engle, thank you for joining us. much more ahead. steak with us.is bloomberg. ♪ taylor: one more reason for elon musk to dance. was bookingo -- ceo . the electric car maker shares row to 4%. the market cap is now more than 88 billion dollars. that is more than ford and gm combined. the all or nothing pay package would be unlocked. that would net him $346 million. --ular viral video maybe tik video app tik tok has a big problem when it comes to politicians. the viral video maybe does not have a robot identification system to certify accounts. that has led to multiple accounts and presenting the likes of donald trump and the indian prime minister. some of those accounts have thousands of followers. joining us to discuss is uchiyama. what kind of accounts did you discover? >> on tictoc, there were many accounts claiming to be public figures and important politicians such as donald trump, orest johnson and bernie sanders. some of these accounts are parity accounts. they take the real profile photo of donald trump. that has apparently led to users belie

let's head over to taipei where stephen engle is with aghast. wait to see you. let's take it away. hank you very much. our guest is a dpp lawmaker who is the foreign affairs national defense committee chairman in the legislative yuan here. congratulations on your victory as well in your district. we want to answer some of the questions that the whole world and the investment community is looking at. you tweeted after the victory of wer party, through voting, reaffirm that taiwan is a sovereign nation. that is a redline for beijing. when anyone here on taiwan talks about sovereignty and independence, what the investors around the world want to know, has the risk level for a possible confrontation with china increased now? iswe think everything chinese redline. we make friend, we see other country, we join the international community, even something like that. beijing, chinese communist, they always yield to taiwan. we have friends in the united states. the assistant secretary to taiwan, they say. let's break the rules. to taiwanese people, we face the china straight. we know their at

nejra: stephen engle, thank you for joining us.oining us for the hour is simon french, chief economist at panmure gordon. i appreciate it might be harder to quantify the impact on global growth right now of the spread of the coronavirus. in your best estimate, will the impact be short or long lived given we are seeing a lot of companies, out talking about the impact on their operations as earnings season is getting underway? simon: it is a very difficult question to answer. the reason we are quite data -- but what you alluded to is the fact that carpets are not waiting for that data -- corporates are not waiting for that data. you are right to say this will have a near-term chilling effect on economic activity. china has contributed around 1/3 to 40% of global growth since 2010. even it is just confined to the industrial economy, that is considerable headwind potentially to growth in the first quarter. it will depend on what the data tells us about infection rates. manus: good morning to you. still very hard to assess the reaction.

let's go to our chief north asia correspondent stephen engle, who is there for us. on from allrry the disturbances last year. we see kind of no potential compromise insight. what happened over the weekend? reporter: that was the core central issue in terms of universal suffrage, and it came andling up again yesterday, the intransigence or perceived intransigence from the government protesters who claim the government is not meeting demands, and the protesters as well not willing to back down. a lot of people over the last few weeks thinking the worst was over and it was dying down and perhaps hong kong can get back to what it does best. i kept saying no, the main issues have not been addressed, or even no table to be put forward and discussed. we are back to square one. it wasn't nearly as violent as some of the clashes earlier, but still the angst came bubbling back as we saw yesterday. what started out, and this is the usual modus operandi here where the protesters are fairly peaceful. they were down here at the gardens. as the day wore on, the frustration started

joining us is stephen engle. give us the lay of the land. stephen: you just ran through the human toll, 100 70 cases and cases,an 7711 confirmed about 2000 more than what we had in 2003 with sars. of course, this has not been around as long. sars was with us for five to six months, and that shaved about $40 billion off of global economic growth. a number of economists are saying china is a lot more integrated in the global economy this17 years later, so if is a crisis that extends five to six months, i'm getting ahead of myself a little bit here, but economists are saying we could see some serious economic damage . growth could accelerate more than the 2% we saw from the first quarter 2003. one analyst at jp morgan has downgraded the growth forecast for the quarter and for the full year at china below 6%, so 5.6% for the first quarter, 5.8% for the full year. guy: is it just a consumption hit, or is capital expenditure going to take a knock here as well? capital expenditure will be an interesting one going forward. they are already talking ab

stephen engle joins us. how big of a victory are we talking about and what does this mean for relations? stephen: a record number of votes for the incumbent, more than 8 million. she got 57% of the ballot compared to 38% for the other. and the third-party candidate was far in the distance. emphatic victory for her. it clearly shows the platform of closer integration with mainland china and the perception here in taiwan that there was interference from mainland china, those the strategies did not only not work, they really kind of backfired, also propelling the woman who was trailing in the polls a year ago, the rebound being attributed to everybody i have talked to over the weekend, the pro-democracy protests in hong kong. did not want, and she said it lately, one country, two systems is not workable for taiwan and it will not happen while she is president. she is giving another mandate. if you look at the history of taiwan presidential elections going back to the first in 1996, 7 presidential elections, the

haidi: steve, thank you for that, stephen engle with the latest on carlos ghosn and his family. keep watching at live with the others of the day. this is bloomberg. ♪ news crossingg the bloomberg. the australian trade surplus coming in at 5.8 billion aussie dollars for the month of november. we are getting some details. -- that trade war has had an impact on the trade balance. we are looking at that number just coming through for the billion,november, 5.8 slightly more than the estimate of $4.1 billion. 2% from exports rising a month earlier. imports falling 3%. in the months to come, it will be interesting to see the impact of the bushfires and the range of data points. retail spending, inflation of course being key. let's look at how the markets are faring so far. >> risk on moves for assets. equities being led higher. the nikkei 225 up while the kospi is gaining ground, set to close at a fresh record high, on the back of an earnings beat. expecting a turnaround in the ship recovery to materialize. hsbc cutting its view on korean equities to neutral. aussie dollar picking up a

stephen engle in taipei.look at what 2020 will hold for hong kong's economy with a guest joining us. this is bloomberg. ♪ haidi: you are watching "daybreak asia." the government of hong kong says it is ready to "spend boldly" to shore up the crumbling economy. the secretary-general spoke to yvonne man about the resilience in the financial market. the tourism board has been working closely with the tourism commission in terms of further positioning in hong kong in the .ierarchy of high-value tourism on the retail sector, yes, currently, a lot of the tenants are affected by higher rental, but if the situation shows that this kind of high rental cannot be sustained, i think the market will adjust itself. yvonne: do you think hong kong can remain luxury hub? paul: in the past six months, because of the social unrest, people worry about their safety. people worry about whether it is still safe for them to come here. i think it is still very attractive, not just as a tourist destination, but also as a place to do b

let's head back to the off investment conference in hong kong where stephen engle is standing by with's get to our next guest and kind of get a pulse check on risk appetite in the asia-pacific as we enter 2020 but also around the world. thank you so much. she is the investment's and ceo. wall street obviously had a very good reporting season as morgan stanley came out with big gains. do you think that given the central-bank environment right now on hold, and with the trade war, at least phase one come out of the way, done, is it more risk-on right now? >> i think it is more risk-on as long as central banks keep these conducive environments and the reason is because if you think about it, morgan stanley is generating a return on equity's close to 14% with twice the equity it used to have, so back in the old days, this would have been a 25% return on equities. what it means is same level for stability with a much safer institution and more stable earnings power, so our conviction is we think markets are- the 20. we think financial earnings are underpriced. in the states, in particular,

let's get to stephen engle who joins us from taipei. he region for hong kong and beyond? stephen: the electorate in taiwan obviously found a kindred spirit with the protests in hong kong. reaffirmingd the rejecting one country, two systems for taiwan because of what has happened in hong kong. the people here took that to heart and they voted in favor of her party overwhelmingly. turnout in total, 8 million plus votes, a record for taiwan, so clearly it is a rebuff of the basic -- beijing overtures saying they want to reunify at all time -- all costs but the taiwanese are saying no. tom: 110 miles wide, the straight between taiwan and china. how important for taiwan right now is it for the u.s. navy to show their flag in those 110 miles? taiwan's confidence comes from having the backing of the united states but interestingly at this time as donald trump is about to sign a trade deal perhaps as early as wednesday with china, he has remained fairly quiet on this perhaps not toy, ruffle the feathers of beijing. they have already put out seve

stephen engle is standing by with his next guest. steve. stephen: good morning.much for joining us. thank you for having us at the goldman sachs macro conference here in hong kong. you are the chief economist for goldman sachs, so let's talk about the outlook for global growth. slightly downward revision but still, things are going well for the global economy. you have some headwinds out there, whether it is geopolitically or with the coronovirus. what is your outlook for 2020? >> generally, positive. 2019 was a weaker year and i think the downward revision from to that.s testament only 3% global growth, .5% or so less than generally expected a year earlier, but for this year, we think we will be moving so,er to 3.5%, and improvement relative to last year and we are somewhat above the consensus forecast which is still closer to three. stephen: i was looking through all your calls. you are above consensus on just about all of the major economies. jan: in many of the advanced economies, it is true in the u.s., to a lesser degree in europe as well, and a number of t

stephen engle in hong kong.g jobless rates from hong kong for the month of december out today as well. cfo is set to appear in a vancouver court monday for the formal start of extradition hearings. she was arrested in canada 13 months ago at the request of the u.s., where she is a cruised -- accused of wire fraud and conspiracy. ben cooper. us from what are we expecting? reporter: this is focused on the question of double criminality. the canadian judges trying to answer the question of is the crime that she allegedly committed, is that also a crime in canada? the allegations are that she had deliberately misled about the relationship between huawei and sky,, a hong kong operation in iran, and that this violated sanctions, and the u.s. contends that she deliberately misled them. can't beers argued she extradited based on that claim because that violation is not considered a crime in canada, but the canadian prosecutors counter that with the arguments that the underlying behavior is an offense because she was com

manus: our chief north asia correspondent stephen engle is tracking the story from hong kong. ese numbers are escalating. stephen: it is interesting to listen to all those voices who are actually here in asia. perhaps they do a lot of business here so they are optimistic about the long-term. isht now, everyone optimistic about the short term. -- 7711, 29% increase from yesterday. there is lots of concern. facemasks to be found. there is significant concern not only here but also in china. there have not been any reported deaths outside of china but the concerns obviously as people to travel around the world, that that number will grow. nomura's economist saying the worst case scenario perhaps for the economy, we could see a similar dropper deceleration in china then we saw from the first of the second quarter in 2003. 11.1% 9.1%. int could be a 2% fall quarter on quarter growth in china. us for the hour, the head of u.k. rate strategy at ubs. need to what tomorrow was saying , also saying we could see rrr interest rate cuts and liquidity investments -- liquidity adjustments --

stephen engle is on location precisely where the events took place on sunday. nd us what happened. stephen: yeah, some of the violence happened here below me. where it was a police approved gathering, a demonstration organizers wanted to bring the attended to the world again that their pursuit of those five demand is still very much in place, even though it was perceived that the worst was over. some government officials had been quoted as saying there was a lull. they came back in force. there were at least 150,000 people. i cannot cooperate that number but there were tens of thousands who gathered here. unruly when many of the protesters wanted to march towards the admiralty in this direction. the police shut it down quickly, ordered people to disperse. that's when tempers flared and those four officers were injured. late last night as well, the police say at least four petrol bombs were thrown at a police station in the new territories. the police did use tear case to -- tear gas. the bottom line is we are back to weekends of uncertainty and a little bit of u

nejra: let us bring in our chief north asia correspondent stephen engle. we just have a line breaking that south korea is reporting four more new coronavirus cases. with what we have learned over the past 24 hours, should investors feel reassured by the containment efforts on the virus? abating, right? i am not an alarmist and i do not to invoke panic, but obviously companies and governments are proceeding with caution. yesterday at this time, the number of confirmed deaths and the number of confirmed cases had jumped 29% from the day before. the numbers we are getting today are about 25% up. 213 deaths in china. an increase of 25% from yesterday's 170. confirmed cases nearing 10,000. the numbers keep going up at a double-digit rate. there should be alarm. we are seeing from the spread of the virus it is perhaps more contagious than sars, but less deadly. we draw these comparisons because i remember fully well 17 years ago what happened here. again, the impact on the economy is something we have to consider as well. 17 years ago, the chinese economy was ju

stephen engle took a look at what the outcome may mean for china, earlier in taipei. >> now that thepresident has overwhelmingly won reelection, index three main questions. one, how well china handle another four years of its arch nemesis? come its thorn in the side. her pro-independence minded policies. the electorate here in taiwan has support for the protest, the pro-democracy protests in hong kong, and overwhelmingly rebuffed beijing's overtures were closer ties to the mainland. number two, how will the kmt go forward, the opposition party, the first ruling party of taiwan 71 years ago. of theve now lost four last six presidential elections and some say they need a new message to appeal to the young voters here in taiwan. finally, number three, the economy has been doing really well in taiwan, helped propel reelection, but much of that growth is tied to the global economy, as well as the u.s.-china trade war. chinese manufacturers onshore from higher cost and higher tariffs back to taiwan. can a chip cycle continue, and 5g spending continue? a lot of that will go into deciding wh

stephen engle joins us. give us an update on what is happening. there is growing frustration on the part of the protesters. this goes on into the seventh month. we are standing in front of the headquarters. some angst was unleashed on the iconic lien that guard the headquarter. you can see back here one of the of theatues -- one bronze statues has been defaced with graffiti. protesters are really targeted in on hsbc in retaliation for attacksy say was unfair of allies by the government. that is a nongovernment organization. they have helped raise funds for protesters. largely to help with legal fees and bail. authorities seized the accounts and froze the money. hsbc also closed the account of spark aligned agents for the defense. they say it was not their decision. it was at the behest of the client. protesters are extending their ire toward hsbc. attack wasid such an unjustified. that is where we are now. another weekend -- not weekend -- day of violence. it started off largely with a rally from victoria park. late in the afternoon after police s

stephen engle joins us now from taipei. good to see you. we will get to economics in a moment.at is at stake politically. so much is at stake here politically. every election i have covered, this is the sixth in taipei, it's always against the backdrop of china relations. this time, it is amplified more. the last four years, we've had the presidency of a candidate who has ruffled the feathers of beijing with her pro-independence minded policies. she not calling for independence. she wants continued self-reliance for the taiwanese. the old guard of the nationalist party, the original rulers of taiwan when they fled the communist revolution, they are trying to get back in power with a platform of, taiwan's economy needs greater integration with the engine of china. the real wildcard here could be hong kong and it could be the economy as well. it is doing quite well. nejra: yes. taiwan has emerged as a trade war winner through investment. are slow income growth and an aging society. is that the dilemma we are facing here? stephen: absolutely. the stock market is at a near record h

taylor: bloomberg's stephen engle, thank you for joining us. much more ahead. stick with us. bloomberg. ♪ loomberg. ♪ taylor: one more reason for elon musk to dance. the ceo was booking earlier this year when production began his new factory in china. on wednesday, shares of the electric car maker rose more than 4% to another mac -- another record. it is now more than $80 billion, more than ford and gm combined. if it hits $100 billion, the first all or nothing pay package would be unlocked. that would net him about $346 million. popular viral video app tictoc may have outlined new rules to crackdown on misinformation. it still has a big problem when it comes to politicians. unlike facebook and twitter, the viral video app does not have a robust identity verification system to certify accounts. that has led to multiple accounts impersonating the likes of president donald trump and indian prime minister narendra modi. some of the accounts of thousands of followers. joining us to discuss is our reporter. great to have you here. what kind of accounts that were being impersonated

stephen engle is there with more., and our first guest is jeff curry, global head of commodities research at goldman sachs. so much to talk about. good morning to you and thanks for joining us and thanks for having us at your conference. avoss talk about d first. a lot of the global elites will be talking about climate change. i was reading some notes of some commodities traders and they are looking closely at it this year for any signs of initiatives on climate change and what that will mean for the commodities markets. in particular, oil. what is your take? >> one of the points we will be carbon for is really for capture technologies. we think that's got to be part of the broader solution here. there are several reasons for it. when you think about the price of carbon, $100 a ton represents somewhere around $40 a barrel. you had $40 a barrel on top of that. $100 a barrel. we have been there before. you can get half of a solution with $100 a ton carbon tax. you go much higher than that, you start to run into the prob

stephen engle is at the event. take it away.sis to the gdp numbers as well as the monthly figures out of china. the chief economist with morgan stanley joins us. you saw those numbers. what is your hot cake immediately after those numbers? for the full year, 6%. fourth quarter, 6%. in line with what you protected. is the bottoming out of the chinese slow down already happening? >> yes, i think the numbers confirm the economy has bottomed out. the december data is more important. investment, i.t.. when we may the annual forecast 20 will be the year of manufacturing recovery in china, these were based on self indicators. tmi. even the hard data are picking up. it is pretty confident to say the economy has bottomed. >> how long can it go without further easing? or is further easing in the cards? >> yes, it is in the cards. there are both domestic effects -- trade tensions. continued policy support at home. deficit, bonds. domestic policy, we are focused on recovery and china. >> -- in china. >> how much of a headwind was the trade

conference is taking place here in hong kong into is better, our chief north asia correspondent, stephen englenly one here. i am also here with, our guest, , chief asia-pacific strategist with goldman sachs. we are talking about the risk-off mode. the sudden shift, and also the new developments with the coronavirus. evidence as well from china that perhaps it is human to human contagion as well. is this an opportunity for asian investors to cash out ahead of the new york holidays -- the ?unar new year holidays >> people were prone to taking profit and locking down their positions ahead of the lunar new year holiday. that comes in the context of what we think is the biggest situation in markets, which is medicalosition between concerns, as you just mentioned, and it gradually but moderately improving fundamentals environment, versus how much has been priced by last year's performance. the key set up in the dynamic is the conflict between fundamentals and valuation. our sense is that with the markets having had a very good run, particularly the fourth quarter of last year, and that extending int

stephen engle joins us now from hong kong. what is the latest? the death toll continues to rise. e infection numbers, those in factors -- infected, are there signs that those numbers are plateauing? stephen: not necessarily. i don't mean to be alarmist, but the numbers are increasing and they have surpassed sars levels, not on the death front, but in the number of confirmed cases. it seems to be more contagious, but less deadly than sars. the economic ramifications, which we can get into and a little bit, are potentially greater given china's size now. you saw it yesterday, i reported 29% more cases yesterday from the day before. cases and deaths. same thing today. 25% increase from yesterday's numbers in both deaths and in confirmed cases. we are also seeing more cases abroad with human to human first cases in the united states, as well as in hong kong, which has upwards of 11 cases. thailand has 212 suspected cases under observation. of theit may be because a sum to medic elements of the virus and outbreak, it could even be worse than that. again, we are not trying to be alarmis

joining me from taipei is stephen engle. walk us through the significance of the vote over the weekend. stephen: it was quite significant. now that she has that landslide victory and the mandate for another four years, there's three big questions. how will china handle another four years of a thorn in their side, the policies of taiwan and her pro-independence minded policies that really resonated with the electorate? more than 8 million votes, a record here in taiwan. the hong kong protests really resonated with the electorate, of ahat led to a rebuffing push for closer economic ties. the question is what is the future of the opposition party that got routed? they've lost four of the last six presidential elections, and they need a you voice for the longer eat -- for the younger electorate. finally, the economy. tot also propelled tsai victory. can it continue? it is hinged on the global economy, as well as manufacturing to taiwan. alix: thank you so much. now we go to the middle east, where protests turned violent in iran a

pang, tourism board chairman, hong kong speaking to our correspondent stephen engle's.re looking at another prolonged antigovernment protest that has taken a toll on retailer protest, it is not looking pretty. yvonne: taking a look at this chart, you can see where the commercial properties side. prices are at levels that we have not seen since 2013, and there are questions about what the landlords will do. rent, itok in terms of is the most expensive in the world. this point the landlords have to do something to keep retailers in stores. haslinda: if you look at this graph, landlords standing their ground. office space could be at a two year downturn. that is it for "bloomberg markets: asia." ♪ taylor: i'm taylor riggs in san francisco, in for emily chang, and this is "bloomberg technology." coming up, as iran mourns its fallen military general, it down revenge against the u.s.. cyberattacks may be on the menu. plus, it is buy time. pivotal research raises alphabet to a buy largely on the new ceo.

stephen engle is outside to give us an update of what has been happening over these past few days. >> a new year but nothing much has changed. there is angst on the streets. we saw the march yesterday go from victoria park to central in hong kong. it was justrs say over one million people. the police put the estimate at 60,000. that is quite a discrepancy but that is not uncommon, the police put the numbers lower. they took estimates from the initial gathering in victoria park. it was probably more than 60,000, perhaps less than one million, but tens of thousands turned out yesterday in support of their pursuit of protection of their civil liberties. not everybody is violent that this did turned violent late into the evening as the police they had permission originally granted for the march because of fears of violence. .nd violence it happen on another -- did happen. a number of atm's were vandalized, there were roadblocks set up by protesters, were petrol bombs thrown. police responded with tear gas and other measures to disperse the protesters. 2020 looks like it is going to ofa re

let's head over to taipei where stephen engle is standing by. thisuch of a problem is for beijing? eal for xi or just a bump in the road? stephen: no, it is a big deal because we have made a lot out of what is happening in hong kong but the ultimate prize for beijing under very proposed one country, two systems is taiwan. get taiwan back in the fold. many people have spoken to say what happened in hong kong over the last six months has been punctuated by this resounding landslide elective victory for a second term of the independent-minded democratic progressive party is a defeat for beijing's one china policy. taiwan has rejected that policy of one china. she wants the status quote. she is not calling for independence. she says the way it is going is essentially independence. that really resonated with a lot of the people who saw what is happening in hong kong and said we don't want a repeat of that there. we are also here in the financial district of taipei. new taipei city. the stock market today rejoiced. it was not. it is approaching 830 year high. it could hit a record high. a

stephen engle there, take away. the chief global equity strategist for goldman sachs peter oppenheimer. thank you for joining us. we can talk about the short-term outlook of the global equities in the structural issues, but short-term markets are looking at this virus with some trepidation. is this an opportunity to cash out or genuinely a concern? >> the concern is clearly there because there is a precedent and it was a difficult time. it is a very difficult thing to protect where it goes. we all hope for the best but the markets tend to react quickly, hitting the areas most likely at the epicenter. seen inay it has to be the context of how much markets have run up. it's one of the things that could lead to something of a correction. >> there have been cases in washington state in focus as well. where do you see 2020 going? you still see momentum going for u.s. stocks, but not as much room to grow? >> that's right. peter: context is important here. last year was interesting because it was the trough of a bear marke

stephen engle, thank you so much, particularly for the adjustments we see from global wall street to in china. mr. engel, from hong kong today. we have a wonderful set of guests right now. patrick armstrong is with us he has to adjust to what he sees within the markets. we are thrilled on short notice to have with us today, randall kroszner, former governor of the federal reserve system and at the blue school of chicago. a chart, pull out china gdp. we have a lot of charts today. south, from 10% down to 6%. we have just seen jp morgan go sub 6% as well. how do major central bankers adjust to the elephant in the room becoming ever weaker rapidly? and are is a long run short run. the gdp has been going down gradually and china mainly because the population growth has been slowing. they have a one-child policy. the number of working age population is going down. relativelye aging rapidly. when you have fewer workers coming into the labor force, you will have less output and less productive -- unless productivity explodes. they have not really done reform to make that happen. then there