let's bring in chief north asia correspondent stephen engle in hong kong. for in the speech sunday? stephen: it could be a long speech, upwards of three hours. but he will outline a number of party policy priorities, going forward for at least five years, potentially 10 years if he is going to seek another two terms down the road, or even indefinite rule. a lot of questions about whether he will point towards a successor at the end of the congress. he has not named a successor. he is essentially ruling in perpetuity. but the big policy issues -- what he will say about taiwan, if he will formalize unification as a priority, as well as geopolitical tensions with the united states. that is the external site. internally, it is about securing his third term and who is going to lineup beneath him. -- going to line up beneath him. shery: our chief asia correspondent stephen engle with the latest on china. this is bloomberg. ♪ a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for thing

this, for the long-term capital flows into china. >> i feel like an amateur in the presence of stephen englel talk about investors. that is something i do understand. the initial read on monday coming out of the communist party congress was that xi jinping's remarks at a what stephen pointed to, the stacking of the standing committee with loyalists is going to be terrible for investors. over the past couple of days we have seen the nasdaq golden dragon china index rally by more than 12%. people's fears have been eased. there have been noises and statements out of official tiny organs lending support to the market. that is for the short time. we will see many such rallies any time there is actual or expected state support for capital markets. over the long run, it is hard to reconcile xi jinping's ambitions with the objectives of foreign investors. innovation specifically, the tech economy. innovation thrives when the market is able to reward the best ideas and capital is unimpeded by state interference in the economy. those are absolutes in this country, in the west, in the west at large, an

let's bring in our chief northern asia correspondent, stephen engle. what are we expecting? n: there should be a sense of urgency from john lee in his address later this morning and hong kong. if there is not, there better be one. we can call this policy address one that is tied to the singapore affects. they had a head start in opening up, relaxing completely its pandemic curbs. its population through june -- june gained. hong kong has shrunk 1.6%. hong kong is, dare i say? i have been out here 32 years, there is always been nails run for hong kong. i'm not counting them out but it is on its knees because we have been going on for years nearly of very tourists coming in, pandemic controls, there was the political unrest in 2019, 2020 there's a national security law. there's all kinds of headwinds that will likely put hong kong's economy into contraction for the third come out of four years. there should be a sense of urgency. what will john lee do? he will make his pitch to the world saying hong kong is open up -- opening up, we will offer incentives for you to come here. do

let's bring our chief asian correspondent, stephen engle hong kong. certainly a strident xi that we heard from. it's a building on the same frictions already in play? stephen: there were not a lot of surprises to me other than the length of the speech. it was much shorter than five years ago. it was under two hours this time as opposed to more than three hours in 2017, but he did hit on all the hot button issues. if you want to see what is the hardest news that came out of it, he did not give a roadmap or any clues as to whether the country is going to come out of its restricted covid zero policies. he touted the parties successes at saving lives because that is important and something that will potentially stay in place in china. the fact he didn't give any specifics on what would require or to loosen restrictions gives the party an opportunity to gradually reduce. if there's any good news, there is what you could say is positive news. the other bit of news i found was his defiance against the united states. more recently, these chip curbs, advanced t

shery: stephen engle there. to tune into bloomberg radio to hear more from the day's biggest newsmakers getting analysis from the debris team while casting live from our studios in hong kong. visit bloombergradio.com. stay with us. ♪ inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness it's easy to make your home an a check out angi.com today. angi... and done. shery: we are getting producing a result of japan, year on year growth numbers, 9.7% for the month of september coming up much faster than economist at expected. the expectation was for easing from the previous month. instead of that we have acceleration to 9.7% year on year, month on month number is with the .7% for the month of september. we have seen oil prices falling sharply from august levels. the expectation was for easing and pr

rishaad: we are joined by chief north asia correspondent stephen engle. n: we can kind of predict how it is going to go because xi jinping has amassed what some would say is absolute power. he changed the constitution five years ago, abolishing term limits for himself. he is going to have his third term, a foregone conclusion, even though he is past the unwritten retirement age of 69. we have to look for whether he is going to pack his standing committee with loyalists or what other secretaries have done after the mao zedong cult of personality, they created a standing committee of seven or nine ranked equals to give checks and balances in the leadership so you do not create a cult of personality and do not have one figurehead who dominates decisions. the key question sunday -- is he going to stack it with loyalists? probably the odds on favorite right now, where the betting money would likely go. or will he show a sign of party unity? will he bring in someone more closely tied to the communist youth league faction, or a candidate who is very well-liked ar

annabelle: -- shery: stephen engle there.e have breaking news at the moment, we are hearing vice president joe biden as congratulated the former president of brazil lula de silva for winning this runoff election. it was a very close election. we have seen the electoral court here in brazil called the election for lula. we are waiting to see if the incumbent president bolsonaro does in fact conceived, but at this time we are hearing from world leaders including emmanuel macron of france congratulating lula as well as u.s. president joe biden congratulating it also lula da silva. >> we start with the tragedy in south korea, south korea's president is giving it to be addressed promising reviewed safety measures after sending's credit crash in seoul that killed 153 people. it happened in a narrow alley as tens of thousands of people celebrated halloween, first such festivities since covid restrictions were lifted last month. the news said 97 of those killed were women, and 20 were internationals. a bridge is collapsed in the west

for more let's bring in stephen engle from hong kong. what stood out to you with this data? stephen: they prefaced it a week or so ago, somebody i believe from one of the ministries essentially said the economy would be doing alright in the third quarter and it did beat expectations coming in at 3.9%. the consensus survey was 3.3%, much better than second quarter which was 0.4% growth. so it is doing better pretty we kind of knew that. i am looking at other numbers. exports continue to be weak. yes, they beat expectations at 5.7% growth, but that is off august 7 .1%. the consensus was 4%. external demand still fairly benign in single digits. imports just flatlining, same as august. even though that beat expectations for just flat growth of 0%. trade surplus, again because imports are not doing well, that is reflective of the chinese economy and the consumer not that confident right now given the covid zero situation and not surprisingly retail sales disappointing. 2.5% up interest -- up in september. watch out for the consumer going the rest of the year if they can get any ta

david: stephen engle is with us now to tell us about what more we know. ephen: it did fly over northern japan and the republic amounts meant -- and there were public announcements which are fairly rare. they were further of north, the northernmost prefecture of honshu. they were given public warnings saying imbecile has been launched, a missile has been launched, alluding to the north korean's rocket, which south korean officials say it was likely an intermediate range ballistic missile flew over, similar to what we saw in 2017. south korean officials put out a statement saying this was a serious provocation. obviously japan has condemned this as well, and the security envoys of japan and south korea and the u.s. have held a phone call to condemn this. rishaad: before, they used to do things like this to garner attention and get financial aid. but it's being seen in washington as a possible precursor to a nuclear test. stephen: they have been warning about that for quite some time, that the north is preparing for what would be its seventh underground nucle

stephen engle joins us. it is a very interesting confluence of events as china gets ready for this very important event. what is going on behind closed doors in beijing? stephen: this is called the seventh plenum in the five-year plan, and the numbers of the central committee, the members as well as the alternates are gathering behind closed doors as of yesterday. they will meet this week. essentially it is more mundane. they will be formalizing perhaps xi jinping's speech on sunday, which should cover the gamut of all of the challenges and priorities for the party going forward, as xi jinping no doubt will secure his president busting third consecutive term. the less party hungers he essentially did away for term limits for the top man, e.g. him. so there is lots to be had behind closed doors, but there are still obviously a lot of challenges that xi jinping no doubt have to address. the big one is the drag on the economy caused by covid. haidi: you know as well as i that everything is perfect going into the

let us bring in our north asia correspondent stephen engle in hong kong.s criticism when it comes to china data, what is going on here? >> the data has not been good as of late. on the back of lockdowns in china and in shanghai, there was expected to be a rebound in the third quarter to 3.3%. that is on the back avail of stimulus. the big headwinds are still there and that is the threat of lockdowns because of covid zero, ongoing covid zero policies as you can paying -- as xi jinping do not alleviate fears. has a property market headwinds and the turmoil there. -- the property market headwinds and the turmoil there. it was delayed and then we get a message late last night, short notice, that the third-quarter gdp as well as monthly indicators like industrial production, fixed as an urban investment, retail sales, property sales, property investment, energy consumption, it would all be delayed. they do not give a reason nor did they give a date on which it would be provided. it is not a good look for china. not surprising given the importance of the congres

let's bring in stephen engle. what's the mood like leading up to this address? hen: it's a beautiful sunny day after rain yesterday. a lot of headwinds facing hong kong. not just the economy. the slowing chinese economy. the borders still not open with the mainland. there's been a brain drain. that's what the chief executive within the set -- the hour. the legislative council will try to lay out his vision for stopping the brain drain and attracting talent to hong kong. in the last year or so, talent has been going to singapore and other destinations that have opened up. singapore has a head start. john leeson taking over as chief executive. he's made a bunch of bold moves to get rid of the quarantine. there is still a lot of social restrictions as well as those three days of self-monitoring for arrivals to hong kong which prohibits them from going to bars and restaurants. they have to take 12 covid tests . there are still restrictions. i'm not expecting him to necessarily relax those existing covid restrictions. he has signaled that the easing is done for now. t

let's bring in stephen engle in hong kong. it was a two hour speech and a lot of it felt like it was built on the idea that he has spoken about it before, the chinese nation standing up. what stood out to you? stephen: this was a speech that did not surprise me much. only in the fact that it was much shorter than it was five years ago. it was in excess of three hours in 2017 at the opening of the party congress. this time it was just under two hours, but he touched on the hot button issues but didn't really get into many specifics. if investors are waking up this monday morning weathering -- wondering whether he gave a roadmap out of covid zero policies, you will be disappointed. others say perhaps the fact that he didn't harp on the negatives and the need for further lockdowns and the specifics of that gives room for the party and xi jinping to perhaps relax going forward. if you gave any hard criteria to relax, perhaps he would be bound by that. that is, in a way, good news, if you are concerned by the continuing economic da

stephen engle joining us from hong kong. hedging for doom and gloom is fast for out of fashion in wall street after a historic route that is wiped out more than $1 trillion this year. let's bring in our life contributor garfield reynolds. it is the tide turning? >> may be the tide is reaching the peak. that is one of the big concerns is a lot of what seems to of change is traders and investors have gotten bored of doom and gloom, even though there are plenty of reason still. s&p has rebounded from below the 3600 level a couple of times, and that was a level attested back in june. there is obviously a fair bit of significance here. the question is is the cost of hedge going down because people are using an alternative hedge and parking company in cash in saint we are not going to go into this market? we are going to put our money in cash, which is starting to pay interest, rather than worrying about the exact dynamics of how the s&p 500 finds a bottom. the interesting thing is of course the daily comments, wall street journal

let's get more for stephen engle. what stood out for you?t wasn't mentioned. >> we have been digesting this for 24 hours now. you are trying to read the mood and the messages between the rhetoric. on friday, somebody asked me what the market implications would be in the speech. it is kind of a meh response on the markets. he did not really change any of the short-term policies. covid zero, he is sticking to it. he did not even mentioned the wells in the property market. i have digested this for the past 24 hours. i will turn over to the chief china economist. on covid, she does not expect imminent changes to occur. our baseline forecast is that the restrictions will use significantly. buckle up, you will be having covid zero for a little bit longer. then you can see some sort of easing afterwards. on property and the potential for easing, generally speaking she says no specific mention of the property downturn or near-term economic policy. we expect the subject recovery and continued downward pressure to renew more piecemeal easing measures

let's bring in our chief north asia correspondent, stephen engle who joins us in hong kong. evan characterized this as maximum xi jinping. are we at maximum xi jinping right now? stephen: he has what one could say is absolute power because he essentially could rule indefinitely now that he has secured that precedent defying third consecutive term with no term limits. he got rid of those five years ago and has essentially stacked his seven-member standing committee, six other individuals with his close allies. if you look at the breakdown, to individuals who are gone were not said to be in his camp, closely tied to hu jintao and the communist youth league. in their replacement are the party bosses from the key economic and plug power houses of china. you have the beijing party boss and that shanghai party boss who will rise to premiership come march at the national people's congress. also who did he keep? he kept his anticorruption boss and his ideologies are who coined the term the chinese dream for xi jinping. we shouldn't be too surprised. the moves were being put in place

rishaad: stephen engle with the animoca brands' yat siu.id: you won't have to wait forever to hear back from steve again, because we will be discussing the future of phone on as -- hong kong as a fintech hub with the secretary for financial services in a couple of minutes. this is bloomberg. ♪ david: asia may be heading towards this reordering of cryptocurrency markets but hong kong moving to legalize retail trading of digital tokens, as singapore looks to impose fresh restrictions on consumers. let's bring in our markets coanchor who spoke with the central bank chief around plans they have within the crypto market. >> the age-old competition between hong kong and singapore. two fintech and financial hubs, two different approaches to cryptocurrencies. in singapore the new cryptocurrency restrictions will be among the strictest in the world. they will ban retailer investors from borrowing to pay for crypto purchases, understandably we know why this is happening. we've seen the follow, the loss of $2 trillion of value. when you look at singap

stephen engle joins us to tell us what's happening behind closed doors as this whole thing gets going. stephen: i wish i knew. the communist party is a very opaque organization. it's fairly predictable. with its plenum held with the big speech from xi jinping where he will likely outline some of his priorities and the parties priorities. what is happening this week is essentially all the backroom negotiations and fine tuning of policy to unveil at the party congress and then they will be legally formalized at the session of parliament not until march. this is behind closed doors and there are lots of challenges in the chinese economy and chinese society, with covid zero being the pressure weighing on all kinds of growth, manufacturing, tourism and the like. there is also the social stability angle we can't ignore. covid zero has had a dampening effect on sentiment and a prolonged pressure on the chinese economy. he has to balance expectations. you heard about this lying flat mentality. there's talk in chinese social media that it's no longer lying flat. it's let it rot. people just no

haidi: stephen engle with the latest. vonnie quinn with the latest headlines. >> bank of canada signals it is nearing the end of its rate hike cycle. they boosted by 50 basis points instead of the 75 expected. the governor said while the hiking cycle is approaching the end, there are more raises to come. wuhan has locked down a central district after 18 covid cases were found. 900,000 residents have been ordered to stay at home until sunday. non-essential business is closed. china reported more than 1200 covid cases nationwide tuesday. the most in two weeks. a new report from the u.n. paints a grim picture of global warning and says the earth is on track to warm by more than two degrees celsius by the end of the century but that admissions will not increase after 2030. elon musk has made his presence felt at the twitter headquarters before his takeover. he walked into the offices carrying a kitchen sink and changed his descriptor to chief twit. he plans to take that company private. global news 24 hours a day on air and o

let's bring in cheap north asia correspondent stephen engle in hong kong. stephen: unfolding this mystery on the waters just off where we are now, in hong kong harbor off stonecutter's island is the 465 foot nord, which is tied to russia's third-richest man. he is the largest shareholder in a steelmaker and is said to be a very close ally of vladimir putin is one of the most influential oligarchs in russia. you can see the ship here, shot by bloomberg news photographers in hong kong waters but the big question -- what is it doing here? this vessel is valued at more than $500 million u.s. and was built in 2020 and spent the winter essentially outside russia. but when the war in ukraine started, it is said to have come back to eastern russia, and spent since march in vladivostok. some speculate that it went back to russia to avoid being seized, as more than a dozen megayacht owned by oligarchs have been seized either by u.s. authorities or european authorities or others. even some aggie yachts have been immobilized so they could not be returned to russia, or c

for more let's bring in our chief north asian correspondent stephen engle. we know at this point? stephen: we do know that these new roles according to sources, the biden administration commerce compartment -- department has not confirmed but these new rules will be announced as early as this week. to essentially strengthen the export restrictions that the united states has on essentially formalizing or codifying these restrictions on advanced semi conductors in areas that china obviously wants to dominate in the world. that is consumer computing and ai and of course, they would like to go up the value chain better than 14 technology chips. so these new rules are going to help strengthen those export restrictions and includes formalizing export restrictions on semi conductors and prohibits the sale of tools for logic and memory chip production in china. it also will restrict access to chips used in supercomputing and artificial intelligence. the rules last month, i believe it was in early september, essentially, guidelines -- these new guidelines will codify

stephen engle.aited created suisse overhaul -- credit suisse that failed to impress investors. we have details on restructurings and plan to reach profitability by 2024. >> today the bank has paused because it was not profitable enough from the shareholder perspective, and that is where we came up with the need of taking very decisive actions in mainly through different areas, one is radical restructuring of the investment bank, the second one is significant reduce in costs going forward as you have seen, and the third one, very importantly, for the strengthening of our capital basis. why is that? because we want to go through the transformation of the next three years with a very strong capital base and leave the transformation also with a very strong capital base. >> are you confident the announcement today puts the capital question to bed? >> yes. >> what kind of conversations have you had with shareholders? >> have permanent -- >> we have conversations with shareholders, they understand what we

let's bring in stephen engle and hong kong. this going to play out and what are the likely ramifications? stephen: there is a bit of intrigue going on. we know that xi jinping will likely secure the third consecutive term. the question is, who is he going to place in key economic positions? is a list of names that i will not run down the possibilities of all of them. i want to break it down into xi jinping's power-play. i'm looking at for individuals the anyone should be looking at for clues to how xi jinping values these kind of positions. willie stec the standing committee with his key loyalists or will he give a signal of party unity by offering a compromise to those tied to the faction the communist youth league? wong young is thought of as being forced to retire. let's look at the four head shots of the ones i'm looking at. if you want to determine that xi jinping has won the party congress, he has not compromise, you are looking at people like these. the and drc chairman in line potentially to be promoted to the 25 person

for more, let's bring in our asia correspondent, stephen engle. what will happen to covid zero?ns that they could be relaxed, after the party congress. but at the same time, today was on the people's daily coming out with rhetoric that china must stick to these covid restrictions. >> well, i will guarantee you there will be more speculation on this front, as we had to was a part of congress on sunday and through the party congress. and in between the party congress and next march, when the national people's congress, the annual session of parliament kicks off in the first week of march. there's going to be lots of speculation that now is perhaps the time because the political premium has been taken off the front burner and put to the back burner. perhaps xi jinping could relax covid zero. but the people's daily article really indicates -- and that is the mouthpiece of the party, that it has served the economy well, to stabilize a turbulence economy. it is a guessing game right now. especially ahead of the party congress, you are going to see more tightening. none of these mena s

haidi: stephen engle with a preview of hsbc results.ies we are watching, traders remain on the watch for further yen intervention. janet yellen saying the u.s. did not receive any notice about a suspected intervention monday. the liberal democratic party general saying an economic package to cushion red hot inflation will be roughly ¥26 trillion, according to kyoto news. department store salesforce september tuesday preliminary orders rose 4%. korea, there president delivering their budget proposal at the national assembly despite reported threats of an opposition boycott. we will also get third quarter earnings. key assures have fallen 5%, down 23% from a year ago. also looking at movements in honda. janet yellen throwing cold water on expectations of tax relief for ford honor makers. plenty more to come. this is bloomberg. ♪ hi, my name's steve. i lost 138 pounds on golo and i kept it off. so with other diets, you just feel like you're muscling your way through it. the reason why i like golo is plain and simple, it was easy. i didn't

stephen engle explains. >> china's communist party has pre-much held fast to a mandatory retirement agelowing past party leaders to oust rivals and promote proteges. hundreds have been forced to leave the 200 plus member central committee over the last couple of decades. thing is the man at the top xi jinping is now 69. he will not be stepping down. due to a constitutional change he pushed through in 2018. it begs the question, will his next power-play the age limits for everyone but himself? nearly half of the bureaus 25 government officials and potentially three of the all-powerful seven-member standing committee are set to retire. one already says he will not seek another term while the vice premier and china's top legislator are both past retirement age. many of xi jinping's high-profile yet aging nappies could be forced out. such as the economics are spearheaded talks with donald trump. the top diplomat, foreign minister, and the only female on the bureau the one overseeing covid zero lockdowns. elevating the younger may not be a bad idea as xi jinping could potentially rule indefi

let's bring in stephen engle and hong kong. we add this to the long list of chip warnings. .pandemic dra on demand -- drag on demand from pc's? >> not just computing, texas instruments is also going to slow down go beyond just computers and phones into automobiles and industrial equipment. i will get to texas instrument in a moment. sk hynix in the memory chip business, confirming what other companies have been saying already. we have those warnings from micron and others, slashing output plans in response to dwindling to borders, tsmc cutting its cappex spending this year by 10%. samsung reporting its first profit drop since 2019. you see the trend here. now with texas instruments, those shares sank considerably overnight, spreading beyond the computer industry and phones. t.i., texas instrument has the largest customer list in the semiconductor industry. but producers of cars and industrial machinery contribute more than 60% of the sales of -- of its sales. you look at sk hynix, operating third-quarter profit fell 60% to 1.7 trillion w on, miss some estimates consider ably.

for more on this, let's bring in our chief north asia correspondent, stephen engle in hong kong.ay out, depending on who gets these jobs, what are the ramifications? >> let's look at the economic team. we know the economics is he has possibly retirement age. -- passed the retirement age. as many as half of the 25 member bureau will have to retire or could retire. there's going to be a shakeup in the standing committee. on the standing committee, that is the all-powerful seven-member team of ranked equals, with xi jinping at the top and the premier usually number two. several of those, two of those individuals have to retire because of age requirements. xi is going to be sticking around, he is past the retirement age, but there are exceptions for him and his power play. when we get the new lineup of likely seven standing committee members, who is going to be the premier? li qang is stepping down. we have to divide it into four individuals that i am looking at. let's change the page and look at the four individuals. if xi has a power play and makes it about loyalty and putting loya