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tv   Bloomberg Daybreak Australia  Bloomberg  October 9, 2019 6:00pm-7:00pm EDT

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paul: welcome to "daybreak australia." sidney -- inn and sydney. sophie: i'm sophie kamaruddin in hong kong. we are counting down to asia's major market opens. ♪ paul: here are the top stories we are covering in the next hour. trade talks returned under a cloud. negotiators will meet under a shadow of a travel ban and tech black listings. china may accept a partial deal. ropes in chinahe
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as another top sponsor walks away. turkey sins and the troops after a wave of airstrikes in syria leads to growing criticism. the u.s. threatens sanctions in response. shery: we are seeing u.s. futures gaining .1% after we saw markets rebounding from two sessions of losses in the regular session. we had tech and energy leading the gains. we had a little more trade optimism today after bloomberg reported that china is still open to a partial trade deal. suffice it to say we saw some of those gains being pared back in the afternoon session after another report said that china is starting to play down expectations of progress in those talks. investors also had to digest the full mc minutes. members seemed a bit more uncomfortable with that growing gap between market expectations and their own projections. the focus now on a u.s. cpi
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coming out tomorrow. let's see how we are shaping up for the markets in asia. sophie: we could see a mixed session in asia. we could see gains in tokyo. could be mixed after that midweek decline for the original benchmark as investors are turning more defensive as we see growth stocks continue to outpace value plays. keep in mind we have japanese ppi and australian home loans due this thursday. i want to jump into the terminal to show you what has been going on with offshore yuan. it did rise for the first time in a week against the dollar, the biggest gain for the currency and all most a month ahead of thursday's trade talks, but that move has since been retraced. paul: let's chicken on first word news now with ritika gupta. -- let's check in. the ropese nba is on and china, having lost almost
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all its mainland sponsors in the fallout after a tweet supporting the hong kong protest. there are also fears preseason games in shanghai and shenzhen may be canceled. the fallout from the protest in hong kong is threatening to spread to apple. the communist party's flagship mouthpiece, "the people daily," has blasted the company for approving an app that tracks police activity in hong kong. the paper said that facilitates illegal activity. apple has also been criticized for allowing itunes to carry a song that has become a rallying cry for demonstrators. the latest fed minutes shall policymakers were debating how far the rate cutting program should extend, even as they lowered rates last month.
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the fomc met on september 17 and 18. members agreed that downside risks to the economy had increased since the july meeting. they blamed uncertainty at home amidst the trade war and deteriorating conditions in the wider world. turkey says ground troops have moved into northeastern syria after hours of airstrikes against kurdish forces. townstelevision shows coming under attack, and the lira ls turkey came in for widespread condemnation -- the lira fell as turkey came in for widespread condemnation. president trump has since threatened to wipe out turkey's economy if it wipes out the kurds. global news 24 hours a day and on at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. : a bloomberg source says
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china is still open to a partial trade deal with the u.s. as long as president trump does not oppose anymore tariffs. let's bring in our china correspondent, tom mackenzie, chief economist. i'm kind of getting a brexit-y vibe. is anything new in this deal, or is it the same old idea of repackaged? >> is not a major surprise the chinese saying they are not prepared to make a deal. otherwise, they would not have gone all the way over to washington with the vice premier , but wenegotiations have been reporting on the fact the chinese want to narrow the scope. they do not want to put their industrial policy on the table or their state subsidies, but what we are hearing, as you said, from our sources is that they are still prepared to come up with some kind of small deal with the u.s., despite, of course, these actions we have seen at the beginning of the week around blacklisting of eight chinese companies and
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over travel restrictions what the u.s. says our human .ights violations despite that, the chinese are still prepared to seal a small deal with the u.s. and what they are prepared to do is non-core concessions like the purchasing of agricultural products. rampingey're looking at up purchases of u.s. soybeans about 20 million tons a year, so the question is if the u.s. is prepared to accept that kind of deal at this stage. as you alluded to, we have additional tariffs intentionally in the pipeline coming up for december 15 if a deal is not struck, and of course, china wants to avoid those additional tariffs. meantime, the nba continues to take heat over that controversial tweet over hong kong. tell us about the impact on the company. >> just a context, of course, we had this tweet from the gm of
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the houston rockets in support of the hong kong protesters. you had the commissioner of the nba saying he was not going to apologize for the tweet. he regretted it, but he was going to defend a right of his members to free speech. pushback has been very broad indeed in terms of how china has spotted from the private sector to the state sector, so you have seen almost all of its sponsors here in china cutting their ties to the nba, including the likes tencent. the financial impact is likely to be broad for the nba, their second-largest market. they have about 800 million fans. there's a question as well as to if this sours the perception of china on the global stage. you may get two losers out of this. the nba and some of their operations in china, but also in terms of beijing's attempts to portray its image on the global stage. paul: i'm wondering, this whole
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ugly business over the nba in anya, is that going to have sort of impact on these talks this week, or can it be successfully put to the side? >> i think in a sense, it is remarkable that these talks are taking place. the mood music here is just extremely negative. we've got the sanctions on chinese firms. we have the nba acrimony. we've got the extraordinary bloomberg news scoop about the u.s. potentially blocking portfolio flows, dollar flows into china. the vice premier really even got on the plane to come over here. my feeling is the fact that he did is an indication there is an appetite in china to do at least a mini deal, and i think that is very much a reflection of the .conomic reality on both sides hopes for growth were still
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there at the start of 2019. end of 2019, we see growth rating, and i think that's why there is this appetite, despite the negative mood music, to get something done. shery: let's talk a little about talk a littleet's bit about the economics involved. we have seen not only the manufacturing slump but also spreading into the nonmanufacturing side of things. can we still say the u.s. has the upper hand when it comes to the strength of its economy? >> i think both sides are facing substantial weakening in economic growth. in the u.s. at the beginning of economy, we had an creating 200,000 jobs a month. as we approach the end of the year, that has fallen very substantially. are anticipating growth in the fourth quarter of the year will drop to about 5.8% below the bottom of the
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government's target range. i think that is why there is an appetite on both sides to get something done. now we can ask the question -- what agricultural imports at a standstill on tariffs have a meaningful impact on the growth outlook? clearly, the answer if we look at those things in isolation is no. a few more soybean imports, 10 million dollars more soybean imports are not going to move the dial on growth. but what would move the dial on a shift awaynk, is from the atmosphere of fear and uncertainty. it is that fear and uncertainty about the outlook pushing firms to slow down their hiring, slow down their investment decisions. if we get a mini deal and remove some of that uncertainty, i think we could get a bit of a confidence boost heading into the end of the year. shery: thank you so much for joining us.
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u.s. commerce secretary wilbur ross will be speaking at an event in sydney later today. bloomberg tv will take the speech live, so tune in then. turkey is under fire for its military incursion into syria with senators in washington calling for immediate sanctions. president erdogan says ground troops are now inside syria after a wave of airstrikes on kurdish forces. let's get to washington now and our congress editor. seems to be a lot of displeasure in d.c. about how all of this is now unfolding. >> yes, that's right. the president himself was still saying that the u.s. should not have been in the middle east. he was trying to reverse what he called the worst decision the u.s. ever made, but he is giving a green to turkey -- his giving the green light to turkey to go into syria has been lambasted by both parties in congress.
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a little while ago, lindsey graham, who is one of his biggest allies in the senate, and democrat chris van hollen introduced legislation that would require sanctions replaced president including erewhon, unless the administration can certify that turkish troops are not in syria. this has gotten some widespread likely tond it is move rapidly through congress as the situation unfolds, but trump right now is saying that he would punish turkey if the turks the kurds"pe out there, but he does not say what other steps might be taken if something less than that occurs. shery: in fact, we are hearing from a turkish newspaper, crossing the bloomberg right now, with president erdogan saying syrian airspace does not
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belong to the u.s. and that turkey has a right to chase the pkk. we know the kurdish militia has been targeted by erdogan, given its link to the pkk, which turkey considers a terrorist organization. right now the discord between the u.s. and its turkish allies, what can we expect to happen in the future as all these diplomacy's get mixed up as turkey continues its incursion into syria? >> there is still some chance from could reverse or modify his position on this. it will much depend on how turkey goes about this. is someted, there widespread opposition to this move and criticism of trump, and trump himself seems to suggest there is some sort of
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massive retaliation at the kurds , which have been u.s. allies in syria and crucial to the campaign against islamic state, that he would take some affectfied steps to turkey's economy. there are quite a few levers he has, but at that point, it may be a little late to reverse the situation. thanks very much for joining us with that update. we will have more on this developing story later this hour with the head of eurasia group's middle east and north africa research team. want to get to some breaking news in australia. new pump paper to fund a deal entirely with cash, expecting a net gain after cost and tax of 200 25 million australian
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dollars. more to come on "daybreak australia." this is bloomberg. ♪
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paul: let's discuss the globaltions of this with strategies' founder and president. thanks, as always, for joining us. we got a few participants saying they are uncomfortable about this gap between market
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expectations and the fed's appropriate path. do you get the sense markets are leading the fed around on a leash? >> i think what you say is spot on. for quite a more -- for quite a while, the markets have been leading the fed. today, essentially, it is almost like they are connected by a chain. date, want a specific jerome powell since 2018 increasing rates four times saying inflation will head up, and suddenly he switches on january 4 saying he will be very dovish because the difference was in the second half of december, the market cratered, so the fed is essentially following a policy where the equity market dictates what they are going to do with very little to do with the economy and inflation which is supposed to be their main target. the members are confused. i can understand it because
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there is no clear policy. it is not as if the chairman can enunciate what policy he is definitely going to follow for the next six months, let alone for the next year, and that is why the members as well as the markets remain very confused on the next steps. paul: stable market and jobs, the dual mandate that seems very simple, but it's been clouded by other concerns about slowing economic growth, the trade war concerns. i guess in this environment, can you see rates potentially jaying back to zero and powell's "it's not q. week" suddenly becomes "it is qe" in the next few years. toright now we are at 1.75% 2%. that is the range for the federal funds rate. i can see it going down, let's say, another four times. we are talking something like 75 basis points to 1%.
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seeit is hard for me to going all the way down to zero. prior to that, i think they are going to do quantitative easing forward, which i believe has already begun in the guise of supporting the repo market. fed'sn mind that the balance sheet bottomed out at about $3.6 trillion at the beginning of september and just in a matter of months, we are , so theing $4 trillion fed is increasing the liquidity in the market, even though the interest rates have not been cut in recent weeks. shery: having said that, we are headed towards year-end, so how important will funding and liquidity be? >> the funding and liquidity are going to remain very important, particularly because the fed head still says he does not know what caused the mid-september crunch, and the crunch seems to
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be continuing because it is not just the fed intervening for two or three days. it has continued to do that on a daily basis, and when we had quantitative easing, the fed. bonds at the rate of $40 billion or $60 billion per month. now we have had an increase of $300 billion in a matter of weeks. so this is far more urgent, and we still don't have any explanation as to why it happened, so we don't know when it is going to stop. you may have a permanent funding crisis. you say understand when the fed may have been compelled to follow the markets in the fourth quarter of last year, but has the environment changed now? when we see the manufacturing index slumping the most since the end of the financial crisis to the lowest since 2016? >> you are absolutely right. yes, they are taking place, but go back not just to december,
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but go back to jerome powell taking office at the beginning of 2018. he increased four times the interest rate on an economy which could not take it, so, yes, the economy is slowing, but it has largely to do with what the fed did through most of 2018, and it is hard for him to suddenly say he is reacting to a slowing economy because the slowdown also stemmed from what the fed did last year. paul: let's talk for a moment about the consumer, which has been a pillar of strength up until now, one of the last remaining ones. you say this is obviously a lagging indicator. how long is it before all this grief we have been talking about in terms of trade wars and slowing economic growth catches up and you see the fed forced to act to prop up a weak consumer? >> the answer to your question would be to look at the last two
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recessions, the recession of 2001 and the recession of 2007, 2009. what you find is that the consumer sentiment either leads the consumer spending by about two to three quarters, or soetimes, it is coincidence, in other words, if you say continuing to lead and the consumer sentiment has dropped in the last two months, you are talking about consumer spending dropping, falling as well over the next six months or so. consumer spending coming after is the way inment which we are talking about a recession probably in the second quarter of 2020 or the middle of the year. as consumption, which is 70% of gdp, fails as a percent of falling sentiment. always great having you with us. of course, you can get a roundup
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of the stories you need to know to get your day going in today's edition of daybreak. you can customize your settings so you only get the news on the industries and the assets that you care about. this is bloomberg. ♪
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shery: i'm shery ahn in new york. paul: i'm paul allen in sydney and you are watching "daybreak australia." has abandonednes any hope of using its 737 max planes this year and is following southwest and dropping the jet from its schedules until at least the start of 2020. american is canceling about 140 flights a day with its two dozen max aircraft unable to fly. the carrier also warned the grounding would trigger $140 million reduction in third-quarter pretax earnings. anotheroeing is facing
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round of groundings, but this time for an older version of its 737 max plane. more than 5% of older 737 jets faced worldwide inspections in the past weeks were found to have cracks where the wings meet the fuselage. the issue was first discovered on planes being overhauled in china, prompting the faa to call for global inspections. paul: indonesia's biggest private airline is joining a country-wide drive towards ipo's. the airline began preparations for an offering earlier this year and is targeting about one billion u.s. dollars. investor appetite for new listings in indonesia has already spurred 40 turns to go to market this year, setting the exchange on course for a record. shery: we are now hearing that back in 2017, president trump pressed then secretary of state rex tillerson to help persuade
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the justice department to drop a criminal case against a trader who was a client of rudy giuliani. this has never been reported before. bloomberg has learned. we will have more after the break. this is bloomberg. ♪ from the couldn't be prouders
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paul: 9:30 a.m. on another cool and clear thursday morning in sydney. the market open 30 minutes away. futures pointing higher by about 167% after we saw u.s. equities ending higher as well, though volumes were pretty thin. i'm paul allen in sydney. shery: i'm shery ahn in new york where it is 6:30 p.m. we have breaking news in the past few minutes. president trump pressing then secretary of state rex tillerson to help persuade the doj to drop a criminal case against a traitor who was a client of his now personal lawyer rudy giuliani according to three sources who spoke to bloomberg.
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let's bring in one of our colleagues who actually got this , our from bloomberg national security reporter. these are new revelations right now. what did secretary tillerson do, and what happened next? >> what we know is president trump asked secretary tillerson back in an oval office meeting in 2017 to lean on the department of justice to drop the case of this iranian turkish gold trader. the reason this is so important is he was a client of rudy giuliani's, so you are starting to see a sense for how far back the president's relationship with rudy giuliani goes during his time in the white house and the degree to which rudy giuliani had influence over the president in pushing his own goals to secure the freedom of a client. we were told that secretary of
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state tillerson refused. he said that to interfere in a department of justice investigation of this stature would be a clear obstruction and would be illegal. he refused to do that, and in a subsequent conversation with then chief of staff john kelly, he reiterated that he would do no such thing. paul: what are the potential ramifications of all of this, or is the president just like leader tough this one out as he has talked out so many other out soions -- toughed many other accusations? >> things move so quickly in washington and the impeachment inquiry against the president is so severe. certainly, this is something that happened two years ago, so it's not like the ukraine situation which is still ongoing, but it does clearly show there is a pattern here of what critics, including the secretary of state at the time, felt were inappropriate demands by the president. in the ukraine call, there was a
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whistleblower complaint that the president acted inappropriately, essentially broke the law by asking their cranium leader to look into cases possibly involving joe biden and his son and also the 2016 elections. you have a similar situation here dating back two years. in conversations with many sources i've had, this was just one concrete example of what they felt were numerous inappropriate requests by the president where they felt like they were being asked to do things that were illegal. shery: do we know at this point if the president knew such a theest would be illegal at moment he was making that request to secretary tillerson? >> that's a great question. the president's response in many -- if you lookis at ukraine, for example, is, "i was just asking them to crackdown on corruption." the white house has yet to comment on the story. it is unclear if he was asking
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tillerson if there was anything he could do to get the case dropped and secretary tillerson had to remind him that this would in fact constitute interference in an ongoing investigation, but what you had in that situation, which some critics say does not have now, is you had these "adults in the room," like secretary tillerson and chief of staff john kelly who were guiding the president away from things that were illegal, unlike now where you have some of his most staunch loyalists and defenders like secretary of state mike pompeo, his acting chief of staff mick mulvaney, who do not apply those same levels of brakes on the president when he asked them to do things that would be, to put it mildly, highly questionable. us onthanks for joining that bloomberg scoop. let's get over to sophie now in hong kong for the check of the markets. what are you watching? intimate turn in risks
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perhaps on a report that the u.s. and china are not making progress in deputy level trade talks. china apparently refusing to address technology transfers and the talks reportedly also avoided the issuer chinese state subsidies. expending -- extending the decline. the offshore yuan now on a weaker footing, so retracing its overnight gain, which was the biggest we saw in nearly a month. heading backyuan against the dollar. oil trading steady after a retreat overnight with a focus turning to the eia. a report saw a fourth consecutive weekly build, so wti raising the earlier boost we saw on the back of turkish troops moving into syria. shery: thank you so much for
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that. let's look closer at that big geopolitical story. turkey's attack on kurdish forces in northeastern syria. joining us on the line, head of eurasia group's middle east and north africa research team. the president minutes ago saying he will do more than sanctions if turkey asked inhumanely. what know at this point would classify as inhumane? just vaguethese are terms to evade some of the pressure he is facing both from congress and from the foreign policy establishment around the withdrawal of support for the kurdish forces in syria, but it's not clear to me how that is a meaningful threat to turkey at this point. it is very ambiguous. shery: u.s. official saying he has seen kurdish officials mobilizing for battle. what are the chances this will
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end up being a humanitarian disaster? >> i think a lot of kurdish residents along the border area with turkey have begun to move toward the south, other kurdish areas where there may be some u.s. troops -- excuse me, kurdish forces moving north to try to launch some form of resistance. it is not clear that the kurds can confront this in an effective way. it is a limited incursion. i think that is the implicit agreement with trump that there would be a small zone, something that would really compromise with the kurds have been planning for a while. greater autonomy, conductivity between their areas in syria -- this really puts a dent into their plans. paul: the turkish plan as far as we know is to create a buffer zone along that know them --
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well, turkey's southern border with syria. the plan would be to settle 2 million refugees there, mostly arabic. what kind of a powder keg does that set up for the future? >> absolutely. i think that is a great point. think be clear -- i don't the announced plans for a complete safe zone along the entire border area will be what happens. it is probably going to be a lot smaller. it would involve putting pro , chasing the kurdish forces, democratic change that would create scenes of unrest in that area, but it with also provide erdogan an area where he houses refugees. that has also been a partial
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priority given that the regime and iran and russia will continue operations in the idlib province. paul: the president said part of the rationale behind all of this u.s. --et out of the get the u.s. out of the middle east, what he described as a aagmire, but will this create quagmire that some of those other countries you mention can then fill? >> not necessarily iran, but i have seen more of the assad regime and russia incrementally .xpanding in that area it is really the kurds have a , but moscowionship will probably try to bridge the difference between tehran -- sorry, between damascus and the kurds. it is not clear that iranian forces will be there in the future. it certainly makes it easier for the assad government in the .uture to incrementally expand
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thanks so much for giving us your perspective on that unfolding conflict in syria. let's get to first word news now with ritika gupta. ritika: the prime ministers of the u.k. and ireland are to meet later thursday for talks that could seal the fate of brexit. they will explore if the two sides can find room to compromise, especially over the irish border. the u.k. is set to leave the eu in just three weeks without a deal. rival camps blame each other for the lack of progress. italy has sold $7 million worth of bonds, more than double its initial estimate in its first offering of dollar-denominated securities since 2010. the heavily indebted nation received orders above $18 billion, helping widen its investor base by tapping the u.s. market. bloomberg data shows as part of
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the offering, italy sold $2.5 billion of five and 30-year bonds and $2 billion of 10-year notes. struggling utility pg&e plummeted in late trade after a judge stripped away its exclusive control over its restructuring. the decision reverses an earlier ruling that denied bondholders a leading role in any turnaround. pg&e is preparing for the next phase of its unprecedented blackout across northern california to ensure its equipment does not spark fires and hot, dry, and windy weather. global news 24 hours a day on air and at tictoc on twitter, powered by more than 27 hundred journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. shery: you can watch us live and see past interviews on our interactive tv function. could also dive through any of the securities or bloomberg functions we talk about and become part of the conversation
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by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪
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paul: i'm paul allen in sydney. shery: i'm shery ahn in new york. you're watching "daybreak australia." trade talks resume amid indication china is still open to a trade deal if president trump eases new tariffs. great to have you with us. just a few minutes ago, we had the local south china morning post reporting the u.s. and china have made no progress on deputy level talks. the trade delegation will actually be leaving washington a day earlier than scheduled. are you surprised that all that we may not see any progress this time around? >> i guess i'm surprised insofar
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as it's kind of early, given that the talks have not really officially started, to then announce an early departure, but i'm not surprised because the reporting coming into these meetings was very much that what was on the table was a miniature deal. it was not accepted back in may, and if anything, i think the relationship between the u.s. and china has interior rated since then. in that sense, it is not a surprise to hear that things are not on a good path. , we have yet to find final confirmation, but if a deal is off the table, what sort of deal could we expect, and how with this link than the timeframe for a resolution because president trump seems to be putting more and more issues on the table, though he says the blacklisting of tech companies is a separate issue. it is difficult for beijing to
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see it us such. >> i think we are seeing the further degradation and trust between the two sides, and that is, of course, problematic to strike any sort of deal. i think this is the question a lot of people are asking -- what would be the thing that would actually reset the talks and the negotiations, and we are all struggling to find an answer to that question. i think there is still the complication that has been there from the beginning as to what the true motivations are. is a successful outcome the many deal, that is no further escalation and tariffs, is it something more ambitious that gets at the structural issues that are articulated in the 301 report, or is there something much more fundamental and basic that is kind of pushing the u.s. and china apart? until you get an answer to that question, it's really hard to
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see how you get a deal. paul: i'm curious as to what you believe the u.s. strategy is here. before things really started blowing up this week, china was the possibility of a small deal with a narrow scope, but then all these other things started happening. the blacklisting of chinese companies, the travel ban. what is the u.s. plan here? is it one of maximum pressure? >> that is what it appears like from someone outside the negotiations, so it could be that there's just an attempt to apply maximum pressure knowing -- the u.s. negotiators new the reporting was china was not willing to give any more than they had previously, so to get progress on these structural issues, you would need to apply more pressure. it could be that, but we also know in the background, there has been a much more fundamental
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debate about u.s.-china competition and if at its core is really an objective to decouple the economies. that was something when it was first mentioned a couple of years ago seemed to be a really far-fetched idea. it is certainly an idea that has gained a lot of traction in anhington, so that as outcome is actually not inconceivable at this point. paul: let's discuss that a little more. we have seen some companies moving to rearrange their supply chains. it is a complex undertaking. once the supply chain has been reorganized, why reorganize it back, even if there is a deal? is the whole this uncertainty that has been introduced throughout this u.s.-china trade war, that you can have some switching of supply chains, which represents a certain degree of decoupling.
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we had heard also just anecdotally that companies have either deferred investment decisions for have decided to invest in other countries to avoid this kind of deterioration in the relationship between the two companies. once those links are broken, as you suggest, it is hard to reestablish them, and i think this uncertainty that has been introduced into the relationship and in particular the focus on technology as it relates to the relationship is one that is not easy to reverse because private companies have seen that there is a sensitivity to these technology issues, and i think this is now on both sides. there is skepticism in the u.s., but i think there is also skepticism in china and not viewing the united states as a reliable partner. i think there is some if not permanence, some longer effects to this. we arein the meantime, seeing that battle over free
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speech between china and the nba triggered over that tweet backing the hong kong protest. how difficult it will be to navigate the chinese market? >> i think it is a prime example of how chinese companies are drawn front and center into the debate, and i think it has definitely played in the direction of making any sort of agreement that much tougher. i think on the part of china, they have actually kind of played into the much darker narrative as far as china really squashing down on any sort of dissension and trying to use its market size as leverage over u.s. companies. i think it has played in the direction of making it harder to reach an agreement, and it has also raised the political stakes here in the united states. i think if it was going to be difficult for there to be a deal
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before this nba incident blew up, i think there's more political backlash if there were to be a deal now after this nba incident. shery: exactly. i was going to ask -- is president trump still making decisions of what would constitute a fair deal with china when you have so much consensus in washington that something must be done about unfair trade by china? in the very short term, president trump instilled the ultimate decider as the direction these conversations go, but back to the earlier point about trust on both sides and trust that the chinese side would have that any deal would actually stick, i think they probably already have their concerns about trump sticking to any deal, but then, as you suggest, there is this bipartisan support that is very iugh on china right now, and
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think that introduces a certain degree of uncertainty for the chinese side that if anything is going to make them more reluctant to make any kind of concessions. paul: thanks very much. if you are away from a screen, you can still find in-depth analysis. we are broadcasting live from our brand-new studio in hong kong. this is bloomberg. ♪
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from theare live today jp morgan treasurers forum in shanghai where we will be talking to some of the bank's senior figures about ongoing trade tensions and the impact on business. our chief north asia correspondent stephen engle is at the event for us.
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what are we going to expect today? >> good morning. great time to be in shanghai, thatwith the nba fracas just started to unfold yesterday in the day before, and now, of course, the u.s.-china trade talks set to resume in washington, d.c. and we are getting that report that the two sides in deputy level talks have not made necessarily much if any progress. where do we stand right now with global growth and global economic outlook? we will explore that, maybe not as much on the nba -- that is sport -- but generally, of course, the background of u.s.-china relations is the sentiment that is being expressed in this fracas with the nba. we are going to have our guest lineup. it is star-studded at j.p. morgan. we will speak with jp morgan's global head of ranking. also jp morgan's chair of global
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research. she was named by american banker as one of the top 25 most powerful women in finance, and also later this morning, we will speak with jp morgan's china ceo. so much.ank you we will be back with you in the next hour. our chief north asia correspondent in shanghai. let's get a quick check of the latest business flash headlines. lvmh announce faster than expected growth, brushing off the impact of the protests in hong kong. third quarter sales rose almost 20%, striding passed analyst predictions as the company flagged what it called a remarkable performance of louis vuitton and christian dior. despite the drop in consumer spending in hong kong, the group made up for it with improved sales in europe and the u.s. paul: american videogame company activision blizzard faces on that backlash and calls for a boycott after one of its units
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punished a player for supporting .rotests in hong kong the player was banned from the wasorts competition and denied prize money after he shouted a hong kong protest slogan on a podcast. american company so shifting locations to cope with the trade more. location tracker says it is looking at mexico and vietnam as future manufacturing hubs. they also considered moving back to the u.s. paul: plenty more still ahead in the next hour on "daybreak asia." mainstay capital's founder tells us why u.s. jobs growth is lowering the risk of recession. we will have that interview and all the days news, our check of the markets as well, in a moment. that is it from "daybreak australia."
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"daybreak asia is up next. this is bloomberg. ♪
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paul: good morning. i am paul allen in sydney. we are under one hour away from the market open in japan and south korea. shery: i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this thursday, trade talks return under a cloud. u.s. futures slide on signs of little progress this week. one report says the chinese

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