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tv   Whatd You Miss  Bloomberg  September 30, 2019 4:00pm-5:01pm EDT

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emerging markets. our people ready to take the plunge outside the s&p 500? [closing bell] luke: it comes down to essentially stocks like tech. this is kind of the outperformance, and that is probably you are just losing less than anybody else -- than everybody else. caroline: we had to the market close, and the outperform or having its best day since the nasdaq, and it could not quite breach into the 8000. romaine: we should point out that the nasdaq is up. the nasdaq composite, which goes with smaller companies, that is slightly down for the quarter, down about 1/10 of 1%. the s&p and the dow up about 1%, the russell 2000 down.
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a trillion dollar company again. there is your round number. romaine: real estate and consumer staples. you're going to bet on that or on apple? littleht, let's dive a deeper with our markets reporters. abigail, what are you watching? "wacky" you called it earlier. i would agree. this is slightly risk off. this is a quarterly chart. yellow is gold, white treasury futures, and those are bonds, and then in purple, we are looking at e-mini futures, and the main diversions point when the fed lowered rates back on july 31, old shot higher, treasuries took off. that is pretty much in play. old is higher. treasuries higher, outperforming the nasdaq 100 -- gold is higher, treasuries higher,
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outperforming the nasdaq 100. the first quarter of the year when you have divergence like that among risk assets, you really want to think about it, especially considering last september, saira, with the nasdaq with its first monthly down quarter ahead of all of that volatility. the went to continue with quarter, because it really was hectic -- i want to continue with the quarter. also, dislocations in the repo market. together,ut it all here is your scorecard with equities. this is taking off at the top of the chart. as you can see, utilities up, and real estate staples, technology. at the bottom, more cyclical items, like energy. health care continues to be hated or disliked, and i do want to point out with utilities, not only were utilities the best performing sector this quarter, utilities have actually been
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higher for six straight quarters, and that is the longest winning streak since 1999, so it shows you just how stressed this defensive trait has become. i spoke with a stratagem it in asset management earlier today, and he warned that these trades can be like rubber bands. they stretch and stretch and stretch until one day, they snap. renita? wto crude is down for the second straight quarter, as fears of a global economic slowdown overshadow the unprecedented attacks on saudi arabia's energy infrastructure. oil has given up all of its gains following the attacks, and saudi aramco says it has fully restored output, over 9 million barrels per oil, and they say output was a little bit higher now, and this has hired way quicker than expected -- and higher way quicker than
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expected. luke, i went to go back out -- when you look at the globe, the globe has underperformed massively. whenmentioned tech, but you look at the rest of the world, do you still say stay close to home for americans? i: india has a good perform story in place. latin america, brazil can the tradeenefit from between china and the u.s., so we are positive on emerging markets in those specific areas,
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which have their own internal stories that can move those countries forward. luke, i want to look at bond yields. we started at around 2% on the yield, and we got down to something like 1.43%. now.e around 1.68% it kind of went from one spectrum, one end of the pendulum, to the other. i am just wondering, how much are those swings driving the conversation with what we are seeing in equities and commodities? been forhink they have quite a while, and then you get days like today that suggest that that fever might be breaking. i think people are already starting to look ahead. i saw a projection through 2020, much thinks the only positive return will come from the u.s. from now through 2020, so i think that says a lot about the general catch down secularly that people see in
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growth, whether or not we are kind of out of the worst of this kind of cyclical downswing we have had. people still see generally the trend. if you pull up the chart, you can see that people do not seem inclined to fight that too hard. caroline: as long as central banks remain in easing mode, the ecb haswe know very much still got his foot on the stimulus pedal, but where are you seeing central banks going, particularly in the united states with such a rich data week we have ahead of ourselves? saira: we have these accommodative banks around the world, and our fear is that they have been pushing on the gas he hard for a while, and now we see this in europe, where we are not really clear on what the impact is, and our concern is that they will continue to do this, but the impact will get less and less, and rates are low or negative around the world, and
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maybe we will not get the economic response we are hoping for as our longer-term concern is what is going on. a pickup in the manufacturing data and capex spending, not to be reliant on central banks. luke, right when we were coming on, we got the word that rudy giuliani was subpoenaed, and there is the impeachment inquiry, people trying to figure out what is going on. how much and what impact you people see, if any, on the tone of trading in light of all of this lyrical uncertainty? uncertaintylly, means to buy bonds and to sell equities, but i think a lot of .eople have game theory well, essentially, what does impeachment meet on -- mean on trade is the million-dollar isstion, so i think it
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really a lot of guessing, but the general crux of it is uncertainty equals buy bonds, and the market reaction has been pretty consistent. romaine: what do you think about the market here. when you look -- what do you think about the market here, when you look at some of the gains over the past quarter? there still seems to be a dominance of large-cap over small-cap, and i wonder, is that in balance a concern for you, or is this just sort of normal? people are generally wary when they are buying the markets, so they tend to look for large-cap and quality. we did see a rebound in cyclicals and value stocks over the past few weeks. sometimes, when you see that rebound, it can last for a quarter or two, but we do not see the earnings in place to work going forward, and we still see negative earnings revisions, so we do not think that trade would be sustainable for the long-term, so our general view
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is large-cap quality is what will continue to work from here as the markets trade between this period, where they think some are moving off of the table, but really, the picture is mixed economic growth flat with economic growth, and that will make it hard for markets to sustainably make a move higher from here. malik, putting some caution on trade. luke kawa, thank you. that is it for the closing bell. we have the news stories, rudy giuliani subpoenaed by the house panels in the impeachment inquiry, giuliani, of course, being the private lawyer of president trump, and we no sicker to give state mike pompeo took part in the -- and we know secretary of state mike pompeo took part in the phone call between the u.s. president and the ukrainian president. we have so much more for you in
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terms of political news and also wework's ipo. this is bloomberg. ♪
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♪ live from bloomberg headquarters in new york, i am caroline hyde. joe: i am joe weisenthal. romaine: i am romaine bosket. joe: the question is, what did you miss? caroline: the trump administration with a report that it may crack down on chinese capital. pulling the plug, wework.
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they hit a record low on the news. and not a fashion favorite forevermore. filing for bankruptcy. joe: the trump administration issuing a partial and qualified denial to the revelation from bloomberg that it is discussing limits on u.s. investment in chinese companies and its financial markets, and china is vowing, meanwhile, to continue opening up its markets to foreign investment. joining us is a senior fellow on the council foreign relations, and thank you very much for joining us. you, the talkell of capital controls sort of becoming part of the trade war discussion? obviously, we get this sort of partial denial, but it is clear it is something the administration has thought about. how significant would that be, were there to be some limitations put on investment in
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chinese companies? >> i think the answer depends a little bit on what option the administration is considering. the most narrow of the options would simply make it impossible for chinese companies to newly list on the u.s. exchange. that would have almost a negligible impact. companies could solicit hong kong. american investors could still buy those stocks in hong kong. the more dramatic option, but not the most dramatic option, someone like senator rubio's delist the would already listed companies if they do not comply with all u.s. accounting standards and the multi-year period. i think that would have more of of a badterior -- more effect. and it would basically block
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investors from buying stock in chinese companies. all that said, i think people need to be realistic about the relative importance of the portfolio, equity inflows, stocks, chinese stocks, how important that is or is not to the chinese economy. china gets about $2.4 trillion per year from exports. it has been getting somewhere between $50 billion and $100 billion by selling its stocks to the world. the balance between the two is not at all symmetric. romaine: even though it is not symmetric, there did seem to be a bit of a freak out in some corners of the market about this idea ba out there, and i am wondering why people -- about this idea being out there, and i am wonder why people are looking at it this way compared to tariffs across the board. think it is largely because we have been discussing tariffs and the impact on
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tariffs for a very long time. future of theall trade war is uncertain, there is a pretty clearly defined path for tariff escalation that has been set out. you can form reasonable expectations about what is or is not likely based on that. i think people have completely forgotten that a trade war might componentsinto other of the economic relationship, in particular the financial relationship, and that in the context of a trade, the u.s. government might be reevaluating whether american investment in chinese companies is a good or a bad thing. caroline: but also, there is the potential of retaliation from iina, and this is something guess was trying to spell out to us. the issue -- something a guest was trying to spell out to us. the issue about treasuries, for
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example. is that something we might see retaliation on, that we might see some sort of clampdown? how much more painful would that be? ofd: i think the issue whether china sells its treasuries is almost completely independent of the question of whether americans can buy chinese bonds. the most draconian option might reduce u.s. inflows into china by $25 billion a year. put is not enough to material pressure on chinese reserves or force a change in china's exchange rate management. what i think people should be a little bit more focused on is not the bond selling but the possibility that the end of the day, we might be triggering a stocksn who owns china's in the following sense. right now, americans own, let's say, $200,000,000,000 of chinese stocks, and the china investment
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corporation, state investment, foreign-exchange owns about $200 billion in u.s. stocks. i think what china would be more likely to do is not sell bonds but u.s. equities, and then would basically use the money that he got from selling their equities to buy up chinese companies not listed -- now listed in the u.s. joe: so as you point out, even in the sort of draconian version, especially for the overall chinese economy, nonetheless, there is obviously a lot of chinese business owners, entrepreneurs, who have used u.s. exchanges to gain equity and access to u.s. dollars to the benefit of their personal wealth, so even if it were not dramatic from a macroeconomic standpoint, could it be effective in targeting a sort of certain faction within the sort of elites of the chinese economy that would put maybe a little bit of inordinate amount of pain on people they want to take care of?
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is ani think that interesting question. if you basically block all new lists, then you will be blocking the listings of those you may want to encourage as well as those you may want to discourage. the other interesting angle is that the chinese government was not terribly thrilled that so many chinese companies were listing in the u.s. they would rather chinese companies list closer to home in hong kong, so in that sense, it may not be all that effective, even as a targeted measure. caroline: always great to have you on days such as these. now, let's talk u.s.-china in another capacity, because the u.s. government has just said no, because apple was denied relief on chinese-made parts for their mac computer. it would keep some assembly operations on domestic soil, they still have the answer of no.
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joining us is sarah mcgregor. , they had been given relief, so were you surprised? >> well, you know, i guess even the biggest companies in the u.s. cannot hope that every single exclusion request will be met. that being said, apple has been successful in keeping some of its most popular products off the tariff list to begin with. that is all going to change in december, as we know, as the tariffs are supposed to hit things like the iphone, but apple has tremendous lobbying power, so it is hard to know which way the administration is going to be swayed in its arguments, so some of the components with the mac pro were not allowed. this is kind of a mixed bag in terms of the apple batting average pertaining to the tariffs. joe: do we know what kind of impact this will have on the end
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pricing of these products? the cost of the computer and how much would be three -- theoretically passed along? sarah: what we do know is that high-endro is a product, starting at retail at $6,000, so not a budget computer by any stretch of the imagination, and one could imagine that if apple is keeping some of the assembly in texas, there are higher labor costs of doing business in the u.s., more expensive than china, which is why companies outsource like apple, and all of that being said, these things do add up, so on the one hand, companies like apple may want to make the trump administration happy where it can, announcing the keeping of some manufacturing and jobs in the u.s. while balancing costs, and we did see a trump tweet today, praising apple, with a weak old story from fox about keeping those jobs in texas -- story from fox
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about keeping those jobs in texas. romaine: have any other companies sort of had the success apple has had in trying to get sort of a workaround for some of these tariffs? some companies have. little-known companies have had success. some have tried their darndest to get those exclusions in. but what we do know is there have been about more than 10,000 exclusion requests put before the u.s.. they have heard only some of those, about half or two thirds of those, and of those, only about half have been approved, so i guess what all of that adds up to is your chances are nothing if you put in an request, but you have to prove that you can only source in china or perhaps there is a national security strategic interest. all right, sarah mcgregor, thank you for joining
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us. plenty more ahead. this is bloomberg. ♪
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wework: all right, pulling the plug on its ipo, with the co-ceo's saying they want to focus on their core. they are putting some businesses up for sale. joining us is a bloomberg senior reporter. all right. this was not unexpected, but at some point, you sort of have to ask yourself what this means for the broader ipo market to see this sort of pushback and to see it fall apart so fast. reporter: i think it is showing that they can be discerning. they have pushed back when the core governance was not up to scratch, and they saw a very inflated based on its financial metrics, and, yes, the pushback,
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the company has postponed it, co-ceo's saying they will be a public company, but they can only ipo once. joe: in the meantime, don't they have a bunch of cash raise? low, theyes, a record yield now about 11%, so it is kind of in distress territory. they wonder where the gap is going to be filled. we have heard that they are in talks with banks and will likely also raise some equity from private investors, whether softbank or others. rumor thatnd maybe a some softbank executives would come in and steer this business. just how difficult is it now to show it can become profitable, because is that what it needs to do so it can ipo successfully? gillian: that is what the
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company wants to do, so potential market investors feel comfortable around the model, so part of that is job cuts, which you mention, the selling of non-core assets, also the jet, so softbank executive sort of getting in there, trying to help the company identify the debts. joe: and isn't more about changing it or making it more clear? -- is it more about changing it or making it more clear? ian: rebranding it from wework. see if the company sort of can rebound and get investors. joe: all right, great reporting. bloomberg's gillian tan. pressuring interest rates. will the fed come up with a
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long-term solution? that story, next. this is bloomberg. ♪
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>> let's get the first word. the president's personal rudy giuliani has been ubpoenaed as part of the impeachment mike pompeo took part in the president.the president questioned whether the house intelligence committee chairman should be arrested for treason. e also called the whistleblower's account of the phone call a fraud. arlier today, senate majority leader mitch mcconnell said the avoid led senate will not
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a trial on charges against thep. approves, the articles of impeachment, the senate is required to take them well. g.o.p. representative christopher collins is resigning. his comes as he is expected to plead guilty to insider trading. the congressman was charged last trading on nonpublic information about they're disputics. arrested in august 2018 along with his son cameron and the father of cameron collins' fiance. of labor was sworn in earlier this afternoon in the oval office. scalia is the son of the supreme court justice scalia. in california, a new law will allow college athletes to hire
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gents and make money from endorsements. this deifies the ncaa's existing likely nd sets up a legal challenge that could reshape u.s. amateur sports. democratic governor gavin newsom says the law will allow athletes at california ouverts to make and from their names likenesses. california is the first state to pass such a law. law takes effect on january 1, 2023. lobal news 24 hours a day on air and on tictoc on twitter powered by more than 2,700 analysts in more than 100 countries. this is bloomberg. joe: the u.s. presidential up.achment inquiry heating we're just learning in the last half-hour that president trump's has been awyer subpoenaed by house panels. we're learning the u.s. pompeo y of state mike was a part of president trump's
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phone call with the ukraine president. it's at the center of the impeachment probe. pompeo has already been subpoenaed. more, let's welcome in bloomberg news congressional egerton.anna there are so many moving parts. dianne feinstein was a probe on ukraine call and getting a report out of the "new york imes" that there may have been pressure on the australian prime minister by president trump as well. start with giuliani, he is the focus here. what do we know specifically and what involvement the house is looking for? got a letter from three house committees subpoenaing documents, demanding rudy giuliani, text messages, communications or calls that he may have had with ukrainian discussing the investigation of joe biden and hunter biden. that house from the house ommittee has requested the deposition of three of giuliani's associates, so that
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follows the same pattern with pompeo's subpoena last week subpoena for ed a documents that and there were former and current state whose ent officials deposition was requested in the committees. in the case of the state department officials, the epositions would happen this week. in the case of giuliani's associates, those depositions are next week. as the president's lawyer, is there any sort of lawyer that not allow giuliani to comply with the subpoena? anna: giuliani is kind of in an position, he is the president's personal attorney. he is not drawing a salary. is not in any official capacity associated with the executive branch. stopped the white house before from asserting xecutive privilege over other testimony and depositions in other house committees. this subpoena was just for have given o they him an october 15 deadline to respond. next step r if the would be to get giuliani himself in front of a house committee to
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testify. caroline: anna, as we start to get this drip feed of information, whether it be that pompeo was part of the call on july 25, as it now seems that leaned t trump apparently at the request according to the "new york times" on the prime minister of we expecting this to become something much bigger, potentialmation about phone calls that have been fit into this black box that seem to be revealed? anna: that's something that the at in the are looking hou house. not just the g at ukraine calls but other calls ith foreign leaders that might have followed a similar pattern. that's what nancy pelosi was alluding to, we're going to facts and see where they lead. it's not there is a decision based on one instance. going to be looking at that instance, looking for patterns of behavior and seeing what can be dug up to corroborate those accounts. so there could be other
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examples. example with the australian prime minister certainly looks like one that is going to be ooked into and it could snowball from here or we could focused ry narrowly impeachment inquiry on the ukraine else's. we'll have a better idea of that two weeks.xt joe: a lot of people in the public view this as a partisan exercise. there was a quinnipiac poll that said the nation was evenly split whether or not to impeach the president. i'm going to hate myself for sking the question, but has there been any talk about having prosecutorndependent to pursue this matter? some talk e was before the initial announcement but democrats decided against that. from of that was concern progressive members, they wouldn't be represented on that select committee. there was some interesting maneuvers behind the scenes to of the chairman judiciary committee, jerry nadler aside.
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the mueller eading investigation. ad adam become the front man going forward and the messenger presenting the case to american people. joe: thank you very much to loomberg's anna he had jerriton. short tching gears to term interest rates, borrowing and there was a columnist, let's start with the basics, have been dealing with this repo term low for a few weeks. hat is it about the regulatory environment that builds up pressure at the end of the quarter? basically this idea that banks are cleaning up their balance sheet and doing what we window dressing. it's the idea that you want to look a little bit cleaner so you treasuries. joe: cleaning your room right
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before. caroline: no question that the alleviated at e the moment by the operations being conducted. that what we saw is starting tomorrow effectively, they're going to only have a their of $75 billion at temporary overnight reto facility instead of the $100 the on that they had over past three days. it's a signal they want to get through quarter end. that point re past with a little bit of strains, but nothing too bad on the can move on and hopefully settle down heading into october. this was a pretty wacky quarter as people have pointed out, the andy kaufman of quarters, if you will. what confidence do you have as a market observer as we head into he fourth quarter here that it's going to be any different or any calmer than it was in the third quarter? brian: i think what you're hearing from fed officials now, a more people solution. powell said after the last
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eeting, this isn't going to have any effect on the economy. it's not really a big deal. kind of ntinued to be strained and so now you have people coming out, williams said lumpy, we es are might need more on the system. brainerd said we need more reserves on the system. hey are talking about more coming soon. solutions, you add reserves or you have the we market operations like have been having lately which is what they used to have or you repo ish a standing facility so that anyone at any ime with a haircut can get reserves for their good quality assets. what is the impediment of one of these in place? brian: i don't think they're ready for a standing repo facility. he indication that i have been getting from a bunch of their omments is they're not as far along on that to implement that right away. they have been resorting to the
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emporary solutions to bridge the gap. what you might see is the organic growth of the balance sheet that powell was talking they'll put that into place after the october meeting and then they'll do the sem operations as necessary. caroline: moving away from sort of the plumbing financial markets, it's ey been a wacky quarter, amazing quarter if you look at issuance, was.inly september what about going forward in terms of investment grade, high yield, what are you expecting there? brian: i thought it was the grade bond was interesting this past month, there has been all this from ence, oil prices saudi arabia, wework drama, all of this going on in the markets meanwhile 130 or so investor grade corporates came to market borrowed and the bonds have been returning 13% this year just like incredible returns and yields, you're starting to see a little bit of cracks, more were pulled over the course of the past month. i think that issuance will
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probably be smaller than it was september. going forward, it seemed like a really attractive market for borrowers. you get some yield but not too comes, if a recession your high grade bond will default. facene: did you notice his just light up talking about grade.ment caroline: it's a passion. plumbing, too. brian, keeping things sexy in the world of corporate debt. up, we'll discuss the fall fashion chains going forward. this is bloomberg. ♪
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joe: time now for a look at what stories are trending across the
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universe. clis fer collins, a run from new york who is resigning from congress and pleading guilty in insider trading case. collins was charged last year with passing nonpublic australian about an biotech company to his son. prosecutor say the say was the in which insider trading charges were brought against a member of congress. has a story on new york which is going to flirt with record heat on wednesday temperature is set to reach 89 degrees fahrenheit, one level that has been hit five times on this date in 150 years, but it won't last. drop as rature could much as 20 degrees on thursday. and tictoc on twitter is millennial at workers are even more burnt out than previous generations and their finances in and outside of work. they're paying for more convenience like takeout and car services and rewarding themselves by splurging, and asing productivity financial well-being. big steps in budgeting to avoid inancial burnout by canceling
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subscription services and refinancing loans. you can follow all of these terminal on ur and on tictoc on twitter. caroline. aroline: with the some millennials aren't burning them 21, it has ng on filed bankruptcy. financing0 million in to stay afloat. it's closing most of its asian european stores and focusing north core business in america. i remember when forever 21 moved into london and you couldn't bright yellow bags. what did they get so wrong? this was goode of old fashioned mismanagement. they said in their court filing some real they had inventory issues, certain years certain overbought and years they way underbought. that affects your ability to sale. profitable their international expansion did not go as planned. those are definitely some of the factors. think there is a little bit
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fashion lash too fast brewing, that's caught up to them. have been talking about that for a long time since big thing. is that the main discomfort that people have with it? is.h: yeah, it definitely photographer 21 was able to rise disposable of clothing when folks wanted to be seen on instagram and got rid of it. the sustainability concerns around it are starting to mount. viable having more options for having a constantly without wardrobe relying on fast fashion. the rental model is getting prolific. a pioneer.nway is you have ann taylor, express, into that es getting space and giving customers more options. we have the explosion of stores like nline thread-up, posh park, the real that went public this
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market. if you want a constantly otating wardrobe, but don't want to feel like you're throwing clothes away all the those are options. romaine: for those who don't otate as much, what is the trend in the retail space? some folks aren't fashion a new , they don't need dress every day. are those stores still doing well? sarah: no, we're seeing the apparel industry across the dre board is facing challenges customers to be interested in their product. there is a lot of reason for that. millennials and genz are technology and experiences as opposed to clothing. some of the businesses have not been doing their jobs. been producing compelling fashion. we have been stuck in the sort a skinny jeans era for over decade now. joe: when did that end? arah: there is not a lot of newness or incentive to stock your closet with new stuff if not seeing big changes in
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silhouettes. it's of their own making. aroline: they are considering that at one point it seemed to be the e- commerce players scartiscart i in? starting to come sarah: so definitely forever 21 retailer they'll be looking to sort of work with prolific in so u.s. stores and what remains of their client base is young. do have a gen z shopper mall.can pull into a a simon property group or brookfield will be working with hem, negotiate leases or give them smaller spaces. one of forever 21's errors was really huge stores like 35,000 square feet. maybe if they can negotiate for footprint that will help them be more profitable. i certainly think we'll see some
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that space. joe: sarah, when the skinny jean era ends, we'll have you back on. her.s great to have one analyst is warning that not all marijuana stocks are going survive. seaport global's brett huntley shakeout.g a major those companies without scale that are unprofitable and can't enerate cash will likely dissolve in the coming months. exchangenative harvest traded down about 13% this month and hit a record low today. latest step in the trump administration's push to ree freddy mac and fannie mae from government control. he two giants will be boosting their capital by billions of dollars. they send their profits over to government. that is your business update. joe. up, hong kong
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protests intensifying ahead of china's celebrations to mark the 70th anniversary of communist rule. we'll take a look at the city next. this is bloomberg. ♪
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caroline: this weekend saw one of the most violent protests in four months, this before china 70th anniversary of communist rule. chief correspondent stephen engle has more. teven: this is the epicenter of some of the most violent protests in the 17 consecutive eekends of unrest in central hong kong. police firing tear gas. blueused water cannon with dye to identify some of the more hard core protesters. they filed pro vehicle times, rubber bullets and boon bags against the advancing protesters who tried to storm the legislative council building and behind me.offices
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they will throwing molotov vehicle and any pro times they could find including bricks. they set up several barricades including m on fire at the entrance of one of the subway stations in the next door neighborhood. it was a violent evening. this morning it was more calm. were clear. however, it could be described s a tense calm because october 1, tuesday, is a public holiday. in china,national day the celebration of 70th anniversary of the founding of republic of china and protest organizers say they hongto rally again here in kong. however, police have banned that organizers are appealing that ban. nevertheless, the last time we the police, the protesters showed up anyway. say it is rally, rinse, repeat. stephen engle, bloomberg news,
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hong kong. romaine: our thanks to stephen engle reporting there in hong kong. york, let's getw with sherys expected ahn. this is a big day for china. that think it's possible the protesters will still be disruptive? shery: definitely, as steve mentioned last time when the hong kong government did not the protests, they still showed up. right now there are planned allies for six different stickets of hong kong despite the fact that the hong kong government has banned them. a time when chief executive carey lam will be out hong kong. the ill be in beijing for celebrations. omaine: how big are the celebrations? shery: we're talking around in 000 people taking part some form or another according
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to state media. in e are expecting to see hong kong the annual flag raising ceremony which is a big year.very this time around they're taking it indoors, this could be nother flash point for protesters. we are going to see fireworks in, not in hong they just cancelled those fireworks on the waterfront that year.s every president xi delivering address and an evening gala. the big event will be the mass parade in beijing. 5,000 soldiers and sailors parading through tiananmen quare, 580 tanks and other weapons as the state media calls this, mass pageantry. pageantry, it comes at a rather good time for to rally xi to be able sentiment at home, right, and be the to maybe reach, give olive branch, certainly talking
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in a warm way towards hong kong their future relationship. shery: reminding the people in china of how much the communist done for them in the past 70 years. and we have seen, of course, xi become the most powerful leader in china since mao. he will be delivering his message in the same balcony in of heavenly peace where mao proclaimed the establishment people's republic of china. the president xi taking the first time for the to talk more at length, this is the first time that we have talk this much about hong kong urging unity and the g that hong kong and mainland relations will improve. stuff, forascinating more on these stories, day break and asia at 6:00 p.m. eastern time. oe: i'll be watching more
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economic data numbers for manufacturing in the u.s. for eptember out at 10:00 a.m. eastern. romaine: don't miss the auto ales for g.m. and chrysler coming out tomorrow. tech next in the u.s., have a great evening. ♪
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♪ i'm curt wagner in san francisco. this is "bloomberg technology." n the next power, rework wework, puts an official pause ipo plans, what changes need to be made before coming to market. distraction, we talk how this could be a diversion from falling revenue


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