let's bring in stephen engle in hong kong. is this the big intervention everyone has been waiting for? stephen: it is something we reported on a couple of weeks ago that they are considering and according to state media have done which is making an extremely rare move, raising the budget deficit ratio. you set the target at the beginning of the year at the annual session, the national people's congress in march and you stick to it and it's generally 3% of gdp. now we are learning that indeed china will raise that to around 3.8%. they are issuing additional sovereign debt worth one trillion yuan, 137 billion u.s. dollars in the fourth quarter. is it the bazooka? not necessarily but it is showing urgency that the economy takes priority. xi jinping over his last decade has prioritized basically party discipline, national security and other things other than the economy as he took on the platform, property, online education, gaming. multiple shocks combined with the covid pandemic that locked china down from the outside world for

ambassador to china nicholas burns speaking exclusively with stephen engle in beijing.ships. tsmc as well. earnings led to more optimism in the stock. up in taipei about 1% this morning. the chip cycle we are watching closely. seems like they are a little more up each. guidance was off. let the market to go higher. take a look at what our columnists are saying. challenge ahead for the company paid rishaad: talking about a great tide of security concerns. how should we be looking at tsmc and thinking about the company after the news this week? >> obviously we can look at the short-term thing which is the earnings yesterday. they did beat but a lot of that was a -- a large portion was taiwan's dollar did we can. a lot of things happened for tsmc. a local plan to build a new plant in northern taiwan was canceled because of local protests. even taiwanese are not keen to have tsmc in their backyard. the department of commerce came out with stricter rules that closed loophole on some of their client such as an nvidia selling chips into china. tsmc says we can manage that. it

for the latest, let's bring in stephen engle in hong kong. they have been more developments. we don't know the exact nature other than what we have gotten through state media. bloomberg news has written the fact that the chinese government for clarification of reports from state media, but state media is saying these are potentially separate investigations from tax authorities on the affiliates of foxconn in guangdong province and jiangsu province but also natural resources official in china potentially looking at land use, whether violations are not, but foxconn's land use into other provinces, aa -- hubei which is where junko is and is also known as iphone city. i am not connecting the dots and saying the investigation means malfeasance which means disruptions to supply chains and production but you have to wonder whether that would happen , whether this does eventually lead to some sort of action. we are getting ahead of ourselves but the market is responding. as you can see, hon hai the listed company in taiwan is down 3%. foxconn industrial internet albany which is an a s

chief north asia correspondent stephen engle is here. you have covered the story for us. keep takeaways. stephen: to ever love of what you sent from john lee's speech, the pressure hong kong is under is tied to weakness in the chinese economy. property prices have been dropping. i am sure john lee will be talking about the connectivity to the mainland and finding ways to attach itself to some of the stimulus, if you will. we have been debating, uni, whether this is the big bazooka we have been waiting for. i am not sure we can call it that. because of the long list of headlines regarding events night after the closed-door meeting of the national people's congress, so many of the headlines were due to a slumping economy and the need to, put out there is they need urgency. yesterday they were talking about the expanded balance sheet that will come as a result of this increased issuance of sovereign debt to the tune of one trillion yuan. therefore, essentially raising the budget deficit ratio to about 20% of gdp as opposed to what was said in march the national people's congr

collaborate with chinese authorities on the unspecified probes and for the latest let's bring in stephen englein hong kong, what do we know may be behind these investigations? stephen: the company in taiwan is not saying the nature of these investigations other than to say that they will cooperate with authorities for unspecified probes. global times, the state media newspaper essentially saying foxconn is being investigated by attacks authorities for their subsidiaries just across the border where they make a lot of products in large factories as well as another province. they are looking to land use according to state media in hunan province. it is right in the middle of china along the yellow river and known as iphone city, that is their biggest maker location for making iphones read so again, it is too early to say whether these investigations will lead to any disruptions of these factories but it is worth watching when you have a factory being the largest producer of iphones globally. again, they are saying they will collaborate but no other details. the big question going forward is is t

stephen engle joins us from beijing.sed to be a more muted forum given everything that has happened across the world. what was your biggest take away? >> i think it is more of a muted project as we head into the second decade of the belt and road initiative. xi jinping at a banquet last night attended by putin and other leaders who have invited to the 10th anniversary, the belt and road forum, essentially hailed as being a vigorous past decade and a golden decade ahead for the bill and road initiative. it is his signature project and it will not necessarily lose momentum simply because it is the signature project of the paramount leader. however, if you look at some of the dollar figures through the pandemic since the peak of investment in 2018, you see the average deal size going down. by most accounts it is down by 40% since the peak in 2018. it has lost a little bit of momentum. the singular g7 member nation, italy, has indicated it is going to pull out of the belt and road initiative possibly by the end of this year.

stephen engle joins us now from beijing. what is the latest? ephen: today is the big day where we will get the opening address from xi jinping and we hear as well the guest of honor, vladimir putin has been invited to give a speech. glad to see what those gentlemen have to say. at the grand hall here up at the olympic green where we are now and where the ceo conference was held yesterday, we had all the buses had off to the great hall and people adjacent to tiananmen square where the main celebrations and speeches will be had. xi jinping and vladimir putin have met up and they will both be having bilateral meetings today. we are hearing vladimir putin will be at meetings with the leaders of thailand, mongolia, vietnam and perhaps some others as he is the center guest of this initiative, given the status that he has as a wanted war criminal by the international criminal court's. we will have to see if these two gentlemen -- and on that partnership that they struck in february of 2022 just weeks before vladimir putin launched his war in ukraine. o

for more, bring in chief north asia correspondent stephen engle. w will the new rules differ from what we saw last year? stephen: it is simply a tightening of the rules and a slight expansion as well. obviously, the biden administration has been imposing export controls on advanced chips as well as chipmaking equipment to help limit the ability of chinese chipmakers to get those proprietary technologies developed by the united states and its allies possibly into the hands of the chinese military. this would be closing of a number of different loopholes that perhaps the u.s. government has found that the chinese procurement channels have used, such as third countries. or chinese companies using their affiliates in other countries to purchase such equipment and technologies and chips. so it is a tightening, perhaps led by the commerce department to essentially close those loopholes which have allowed chinese buyers to avoid those sections so far. it's not so unexpected. right now we are hearing from sources that this could be announced by the early pa

haidi: our chief north asian correspondent stephen engle there with the latest.g through from cctv, that china's former premier, china's number two leader for 10 years has died from a heart attack. we have more to come on daybreak asia. this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management. (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ vonnie: let's look at the movers early in japan session. they are up 5.8%, the most since october 2022 after earnings disappointed. fujitsu rising as much as 13% after second-quarter profit be estimates. we also have canon there down 5% and cicada on the centerfold now is down 7% and cut its full-year forecast. this is bloomberg. ♪ nice footwork. man, you're lucky, watch

shery: stephen engle joining us live from beijing. stay in china because separate analysis show apple's latest iphone 15 is trailing in sales in the country compared to its predecessor. for more bloomberg technology reporter mike joins us now -- mark joins us now. stephen was telling us how things have changed in china where we continue to see the slowdown. what else is driving the sluggishness in sales? >> the new phone, it has been well received early on in china, one of the only places in the world where it can be sold after the ban on u.s. and elsewhere. an increase in nationalism in response to some of these bands and government agencies in china and other entities are putting their foot down and saying if you are going to use an american-made phone we don't want it at the office and that may have pushed people back from buying the new devices. we have to take a look at the numbers to know the full context and story of what is occurring. there is a chance these numbers are not as bad as the analysts are leading us to believe. may

stephen engle there in beijing. thank you for your reporting. i want to go back to the european story in the translation from what is going on in the middle east. two people were killed by gunfire in downtown brussels on monday night in an attack which is being investigated as possibly terrorist related. let's get to maria tadeo in brussels. what is the latest on the ground there? maria: this shooting took place in brussels and two people are dead. it brings back memories of the 2016 terror attacks that hit this country. it was 7:00 p.m. yesterday that two people were shot dead in a third peterson -- person shot was recovering in hospital. they were shot unprovoked by a man on the streets. we know that this man who belgium authorities say is suspected of carrying out the shooting in the name of terror and they acknowledged there is a social media video from this person. he vindicates his ax and says he is doing this -- indicates his ex and says he is doing it for the islamic state. he is still on the run and has not been caught. the belgium auth

furthermore, let's bring in our chief north asia correspondent stephen engle. s a reaction to what we saw with the price progress that huawei made? stephen: it's an interesting development, not to be an expected, though, to tighten some of the loopholes that chinese firms have been able to navigate to get supplies of these advanced chips which are on the restricted list, as well as chipmaking equipment. so this is, according to sources , saying that this new tightening of restrictions could be announced by the u.s. as early as this week. essentially, and we can bring up some of the bullet points on what we are learning for these sources. here adding trainees chip design firms to the restricted list which was first announced last year. overseas manufacturers will need to obtain a u.s. licenses to fill orders from those chinese companies, and there will also be stronger controls on the sale of advanced chipmaking equipment and graphics chips, according to these sources. it will close loopholes that might have allowed cheney to buyers to use either third countries,

north asia correspondent stephen engle there. we are monitoring international reaction on this ongoing conflict between israel and hamas. the gradient president is urging global unity against hamas which equals a terrorist group. speaking before nato's parliamentary assembly, he drew parallels between the attack of hamas and russia's invasion of ukraine. >> the only difference is that there is a terrorist organization that attacked israel and here is a terrorist state that attacked ukraine. tensions declared are different, but the methods are the same. >> websites have come attacked by hacker groups allied to hamas, one called kyl net blames israel for the woodshed and is pointing to israel's support of ukraine. another group declared support for what they called the palestinian resistance and took credit for briefly taking down the jerusalem post website. delta united and american shares -- airline shells -- shares fell more than 4%, the major u.s. airlines and flights to tel aviv, multiple carriers have also suspended services

shery: stephen engle there with the latest on china. let's get back to what is moving in the markets. annabelle: i think we just want to get some quick reaction to what stephen was discussing, supported measures to try to boost the chinese economy. you are already seeing those gains coming through for the likes of bhp and fortescue. their other names but not trading just quite yet. also keeping an eye on the tech sector in general, given the mixed moves that came through on wall street in after hours trade but no clear theme developing out of that just yet. shery: big names in the tech sector after earnings, especially with microsoft, which is now climbing after posting it strongest sales gain in six quarters, bolstered by recovery. cloud computing growth, this is we continue to see demand for new ai products. a whole different picture for alphabet, its cloud unit missed analyst estimates, even as overall third-quarter revenue beat forecast. were joined by su keenan. start with microsoft. su: both companies trail amazon.com in cloud infr

ambassador to china, speaking exclusively with bloomberg's stephen engle in beijing.e are digesting president biden's speech. interesting how the haven assets were reacting. annabelle: absolutely. we continue to see investors seeking shelter in parts of the market. since the israel-hamas war kicked off, we have seen action in safe havens filing and. -- piling in. first, the swiss franc, trading at levels we have not seen since 2015. the japanese yen, close to the 150 mark. gold here, take a look, close to the $2000 an ounce level now. we were into $1888 an ounce when the conflict started. take a look at where treasuries are trading. it is impressive, with the 10 year yield close to 5%. brent crude, another one we are continuing to see. mixed moves. some are saying we could reach near 100 if this conflict does escalate. that's one group of assets we are watching, safe havens. we are still into the trading session for tokyo, seoul and sydney. daichi has three experimental cancer drugs. merck, the u.s. company, has agreed to acquire those for $4 billion. they could pay u

for the test, let's bring in chief north asia correspondent stephen engle in hong kong. now what is behind these investigations? stephen: it's interesting because there's lots of speculation that perhaps it is tied to the founder, terry guo's run for president. what we do know at least is from unidentified sources being reported by state media, global times. they say that essentially, foxconn, which has the big iphone city. john cho, in hunan province, they are being investigated by tax authorities for subsidiaries in guangdong, plus being investigated by natural resources officials in hunan as well as hube provinces. we don't know the nature of the investigation and what is the nature other than hon hai, they say they will collaborate with authorities, as he rightfully said, on unspecified probes. but it is something to watch, especially if it all. fx production and capacity going forward for all those iphones and other apple products, if those investigations lead to some sort of disciplinary action. do your other point about whether this could be some point of retaliati

haidi: stephen engle with the latest. let's look at the trading. annabelle: looking ahead to the open, we look to be shrugging off some geopolitical concerns following the news on wall street. the focus is what we heard from fed speakers, essentially the understanding that the need for a fed rate hike by the end of this year could have been taken off the table, even just in the last couple of days. we have sydney futures pointing to a gain of 3/10 of a percent. kiwi stocks are trading in the red. a couple of unknowns will play out, on monday we had japan, korea and taiwan czech republic holiday so they have yet to react to the hamas/israel war. we are looking for yields to drop at the open with tokyo in a couple of hours. we've also been tracking chinese markets and the property sector in particular. chinese markets returning yesterday from the golden week holiday, trading to the downside, but country garden in focus because we hear from sources that essentially some creditors to the property developer could be looking to form an ad hoc group ahead