Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240714

Happen sooner than anyone thinks. Progress on a deal with japan. A limited agreement signed after washington withdrew the threat of imminent auto tariffs. The threat of impeachment hangs over the president. He releases the ukraine transcript which you thought had been cleared by the mueller report. Be hearing from plenty of big names from the Bloomberg Global Business Forum including michael corbat, steve schwarzman, and colombian president. Lets get a check of how markets are trading at the moment. We are seeing futures gaining. 3 after they had fallen towards that 56 a barrel level. We heard from saudi arabia that they are going to be ahead of schedule. The drone attacks on saudi arabia and facilities taking out 5 of global supply. We are seeing futures unchanged at the moment after the s p 500 ,ained ground on this session halting three sessions of declines. We saw optimism over trade deals. President trump being more positive over eight potential a potential trade deal with china, not to mention a limited trade deal with japan has been agreed on. We heard from Prime Minister abe after the session closed that the u. S. Tariffs on japanese car imports were off the table. So we saw in the session those tech stocks and consumer stocks gain ground and leave the rally. The nasdaq gaining more than one person. Lets see how things are shaping up in asia. Sophie trade lines taking the spotlight, frustrating investors who want to focus on fundamentals. You might get data points that could drive back. Hong kong trade is on the agenda along with a Rate Decision from the philippines. In japan, the signing of an initial deal with the u. S. May lift auto tariffs on the sector. The nikkei could be looking at gains with futures adding. 2 in chicago. It began trading study after snapping a fourday advance. Paul. Paul thanks. Joins us nows from tokyo with the latest on shinzos comments. It appears there may be a limited deal. What more do we know . Chris thats right. It is likely to be a sigh of relief in tokyo this morning. The japanese Prime Ministers success here in getting this interim deal is likely to be applauded because the threat of auto tariffs have been hanging over japan. Japans economy has not been growing particularly strongly, and that was a major threat overhanging the outlook, so the fact that they have got this interim deal, they have pushed aside the tariffs on cars that trump has threatened is a significant achievement, and for Prime Minister abe himself, he has been trying to, you know, develop a strong relationship with trump since before trump even took office. Thell that he went to visit president elect at trump tower in new york shortly after the election. He has done everything he can to try to blend trumps protectionist bent. There was an there was an interesting comment from President Trump when they appeared before reporters, saying that one thing he really appreciated out of japan was that you have been so loyal. That was one of the elements to this agreement. Ironically, one of the benefits that u. S. Agriculture producers will be getting is basically putting them on a level playing canadian and australian producers thanks to the Transpacific Partnership agreement which trump had pulled out of, so essentially, there will be replicating some of the benefits from the tpp agreement that the u. S. Is no longer part of. Another major component of this is digital trade. American Technology Companies including google have been pushing washington not to ignore digital trade, things like ebooks, trade software, these kind of things are covered by this. What is not there is a comprehensive deal on car trade. Shery we had just heard from Prime Minister abe in a presser one hour ago saying that he is taking ample measures to deal with the effect of the tax hike in japan and that the trade measures on south korea do not reach wto rules. Breach wtoy faces rules. Japan faces the consumption tax hike in two weeks. How much did japan need this limited trade deal with the u. S. . Chris that is a good point. Yes, absolutely needed to remove for the time being the threat of given the enormous importance of the Automobile Industry to japanese manufacturing, and japans trade has already been contracting. Exports have been following as a result of the chinau. S. Trade war. That you, the tax hike mentioned kicking in october 1, it was a very big win for abe for the time being. Keep in mind that this interim deal still needs approval by the legislatures of both countries. Shery thank you so much, chris anstey, joining us from tokyo. In the u. S. , the threat of impeachment is hanging over President Trump. He has again defended his phone call with the ukrainian leader, saying there was no push, no pressure. Pres. Trump the witchhunt continues, but they are getting hit hard on this witchhunt because when they look at the information, it is a joke. Impeachment for that . When you have a wonderful meeting or you have a wonderful phone conversation . Shery lets head to washington and our Congress Editor joe sobczyk joins us now. What risk is the president taking with the release of this conversation with ukraines president . Joe the rough transcript of the white house released does indeed show that trump pressured the ukrainian president to open an investigation into joe biden and his son. Biden is one of the chief competitors for the democratic nomination for president in 2020. What is still in dispute is whether president s of minsky of the president of ukraine understood that to be a quid pro quo, opening the investigation in exchange for the release of military aid that the you claim the ukraine government had been seeking for some time from the u. S. A number of democrats are contending that this is a much easier to understand, much more reportthan the mother and the investigation of russian interference. It has fewer details, fewer players, and it involves the president directly. So they are pressing ahead with all of the inquiries, although Nancy Pelosis hearing from some democrats that they should keep the focus on this particular incident, particularly as they get more evidence from the Intelligence Community and from the whistleblower who first raised this issue. Republicans have been staunch in their support of the president. Mightere any signs some be reconsidering their opposition to impeachment now . Joe not immediately. No one is saying we should be impeaching the president among the republicans. There have been some expressions notoncern that this is perhaps proper behavior by the president , and a couple of senators, notably mitt romney of utah, have pronounced themselves very troubled by what they have seen in that. That power was stopped short by saying they would support an impeachment inquiry or vote to impeach the president should it come to the senate. Mostly, the republicans have been lining up behind trump, saying that while there is nothing to see they are or while some parts of it may not look quite proper, it is not rising to the level of the impeachment of the president to take that course. Paul joe sobczyk, thanks very much for joining us. Lets check in on the first word news now with su keenan. Su they start with brexit. Boris johnson returned to a noisy house of commons, refusing to quit or apologize for his unlawful suspension of parliament. He challenged his opponents to trigger a snap election, saying the Supreme Court judges who criticized him were strictly wrong simply wrong. Johnson says they will leave with or without an agreement to soften the impact. For johnson it is time this parliament finally to take responsibility for it decisions. We decided to call that referendum. We promised. We promised, time and again, to respect it. I think the people of this country have had enough of it. This Parliament Must either stand aside and let this government get brexit done or bring a vote of confidence and finally face the day of reckoning with the voters. To israel, Benjamin Netanyahu has been tasked with forming a new government despite no clear signs he can and to stalemate. The decision to give netanyahu first crack at building a coalition comes just one week before he faces a hearing on corruption allegations that overshadowed his last three years in office. This election left him neckandneck with benny gantz. Decisions are widening at the ecb with german policymaker sabine resigning from the executive board more than two years early. It is the biggest show of dissent in the mario draghi era and neither she nor the bank have offered any reason for the departure. She had been a board member since january 2014 and served as vice chair of this single supervisory mechanism. The bank of thailand left its benchmark Interest Rate unchanged, which was expected, but then it may consider steps to reign in the baht. Policymakers are providing support for growth, which of the central bank expects will be lower this year than previously forecast. Growth is being undermined by the strength of the baht, growing more than 5 against the dollar this year. Global news, 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan. This is bloomberg. Shery we will have more on trade ahead. Highlights from our Global Business forum panel, including new zealand and citigroup ceo michael corbat. Their views on the u. S. China standoff. This is bloomberg. Shery this is daybreak asia. I am shery ahn in new york. Paul i am paul allen in sydney. The forum in new york featured a stellar lineup of business and political leaders. The new zealand Prime Minister says governments should be vetting environmental she spoke. Corvert. Simple. It is bringing alignment between the environmental goals and expectations we should have upon ourselves with our trade talks. We are not doing that at present, so lets start with our free trade agreement. We have the ability when we negotiate, be it multilateral or bilateral agreements, to make in vettinge are environmental principles that are in keeping with our stated aspirations and goals. There is fear around this nexus of trade and climate, and what i mean by that is that while globalization has been great and trade has lifted hundreds of millions of people out of poverty, there is the other side of that around people having lost jobs. As people conflate climate into that and subsidies into that, i fear that people pull back and move slower than they otherwise would. It is part of the bigger Corporation Partnership which will incorporate research and innovation, et cetera, to make it happen. The agreement has been criticized lately because of the fires in the amazon, which is extremely worrying. Them ofcannot accuse causing that. It was politically agreed in june. It will take another two years at least before it comes into force. It is not translated yet. So it is still trying to go, but we think that is a way to, for instance, keep brazil and others in the climate agreement, and make sure that they live up to what they have promised. Linkagemeans there is a between a trade agreement and the climate agreement. If they have an agreement with the e. U. , they cannot leave the paris agreement. We cannot have a comprehensive trade agreement with the u. S. Are you running out of time and the court of Public Opinion . Theye who have the energy, do think that trade is a bad idea and bad for the climate. How do you change that narrative . How do you bring those two together so the climate activists do not think that . Time is running out in the court of Public Opinion because time is running out to address Climate Change so i think it is right that they hold our feet to the fire. One of the issues we have had is that it has become it has blame. A tool for we have to start taking some domestic ownership. If the trade agreements are not delivering greater equality, greater reduction of the income divide between the welloff and the poor, our policies have to answer that question as well. The same i would say for environmental policy. Trade cannot carry the brunt of the blame, but it can actually provide some of the answers. It is vital to acknowledge the negative effects of trade. Too often, we are protrade. The benefits outweigh the downsides. That is not sufficient as an answer. We need to have explicit answers to a negative effects. Not just that the positive effects outweigh them. That is a central point. We probably need to take more radical action than that. I am a big believer in a combination of the stick and the carrot. In many ways, it is the character that has the ability to get elsewhere. We have got to start thinking outside the box and incentivizing people. I do not like just having the stick because it leads to a rationality of behavior. Signed, i can do that. I will pay for that. I will factor that in. My economics will cover that. We need to change the paradigm, and we have to incentivize people to innovate so we really bend the curve. Shery breaking news at the moment. We are getting the pricing out for the palatine ipo, peleton ipo. That will be at the top of the and 29fered between 26 each. We are now hearing that it is priced at 29 per share for the u. S. Home fitness firm, peloton. Pointing more to come here on daybreak asia. This is bloomberg. P. M. Johnson it is time to get brexit done. Get brexit done so we respect the referendum, so we can move on to a deal with the peoples priorities, the nhs, the cost of living. We canet brexit done so start to reunite this country after the division of the referendum, rather than having another one yucaipa Prime Minister Boris Johnson in the house of commons after the Supreme Court overturned his suspension of parliament. Commissioner for economics and Financial Affairs says they are ready for a hard brexit. Pierre moscovici spoke at the Bloomberg Business form. Has a europe strong tradition of independence from the ecb and i think mario draghi has been making a tremendous job and he has reinvented the ecb, dedicated it to the integrity of the euro zone and to growth and jobs, but he knows we all know that now, Monetary Policy, i will say, has no more tools. It has used a lot of tools. That is why we need to have a response, which is now fiscal. And again, fiscal does not mean general stimulus. It must be under control, but a between approach again those and those who have the capacity to invest for themselves and others, and that is the case for germany and the netherlands. The British Parliament is back in session today. Is going to be a brexit by the end of october. You anticipate, if so, what will that mean for the european economy . Nodeal would be a very serious matter of concern. Is commissioner for customs prepared for that eventuality. But we do not wish it. We should try, all of us, to avoid it. You know what happens in the u. K. . Every day is a new dream. But still, it shows that there are institutions in this country, the oldest parliamentary democracy in the world, and institutions are resisting. There is a law that has been voted by the parliament in asking for an extension over october 31. There was a suspension of parliament. The Supreme Court said it was illegitimate. I think mr. Johnson needs to listen to that. Au cannot have a kind of fight between the institutions, so i think that still, a new extension is possible, but at the end, what we need is to have a political solution there, because what we see is the system is blocked and the government cannot impose its views. It is unclear. On the other hand, the parliament always says what it does not want but is not capable of defining a plan on its own, so i think, at the moment, that is a personal view that will need to be returned to the people either through elections or through a referendum. We do not know. Take the other alternative. As i understand, you being responsible for customs, you are prepared. If there is a nodeal brexit, to impose the restrictions you need to impose. Joe simply can simply control. Iteris, controls, tariffs, controls. It is a matter of control. Customsoms are e. U. Are prepared. With theo the country channel just in front of the u. K. I went to the entry of the tunnel in france, and they hired the right people, they have trained them, they have equipped their systems in order to have those controls. The intelligence border is controlled. I dont know if that is the case on the other cited the channel. Whatever happens, we need to be prepared. I think we are seriously prepared, and this can be damage control. But again, lets avoid that. We must think about the supply chain consequences for our industry as well as the aircraft industry, for example. Lets try to avoid it. The u. K. , for me, might be out of the e. U. Buts up for them to decide, it will always be a european country. Our interest is to have a solid, close relationship. Paul p or moscovici, e. U. Commissioner for economic and Financial Affairs. A quick check of the latest business flash headlines. Goldman sachs is looking to offload a portion of its stake in a 3 billion credit line it helped arrange for softbanks vision fund. Goldman has approached other Financial Institutions to take on some of its lending commitments and decrease its risk the credit line will set up to help softbank to pounce on transactions. Wework will likely postpone its ipo following the resignation of adam neumann. It is expected to be the second biggest ipo in the u. S. And threatens 6 billion of credit financing that was contingent on a successful offering. Is in talks for a new loan. Paul Credit Suisse is scrambling to contain the fallout of an investigation into a spying scandal. Shares have fallen around 6 this week as outside investigators tried to find out which senior figures two authorized and managed to track one of their former senior staff who moved to rival ubs. Top executives may be criticized, including the ceo. Shery lets take a quick look at how the markets are looking. Robert kaplan speaking at an event, saying negative rates abroad reflects pessimism on the outlook. There is a low chance of recession. This is bloomberg. Custom ink helps us motivate our students with custom gear. We love how custom ink takes care of everything we need so we can focus on the kids. [spokeswoman] custom ink has hundreds of products to make you look and feel like a team. Upload your logo or start your design today at customink. Com beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Trade wars are not good for anyone. They are not good for the u. S. , china, to the emerging markets. While globalization has been great, and trade has lifted hundreds of millions of people out of poverty, there is the other side of that around protectionism of people having lost jobs. We look at china and perhaps efficiently. There are clearly issues that have to get dealt with, serious trade related issues. I look at china as more of a glass halffull. The Chinese Government has many more levers to rely upon than most other governments, and i think they are very focused on ensuring the effects of the trade tensions are not felt to the full extreme. It has started as a result of false starts. And a variety of other tactical stuff. It is starting to decouple, which is dangerous. Trade is never reciprocal, but closer to reciprocal in a way that is good for everybody and i hope we get there. I dont expect it to happen before the elections, to tell you the truth, but i hope after that, we have a fair trade deal. Executives and worldliness weighing in on the trade war. Prospects for a u. S. China deal are still the latest monitor shows that there isumes further weakness in underlying momentum so it continues into the second half of the year. Checking in on some movers this morning, the offshore yuan looking little moved by toms latest remarks on trade with china, driven more by the dollar, which. Climb to a three week high, steady around those levels. Aussie and kiwi yields tracking the move and treasuries, which were pressured over the u. S. Session to see the 10 year yield and cheaper by 7. 5 basis points. Shery lets return to the impeachment drama in washington. President trump released a partial transcript of his call with the ukrainian leader. He denies any wrongdoing and says the push for his impeachment as a hoax. With discuss the situation a Global Situation president. Great to have you with us. Brett good to be with you. Shery it seems to be the consensus right now that it may look a little bit challenging for congress to actually indict and convict the president , especially given historically we have never seen this happen, so what is the motivation for the democrats in trying to push for this . Brett i dont think theres any expectation that trump will be removed from office, at least not with the current fact pattern that we have. However, i think what the democrats aim to achieve by impeaching the president , here in the United States, the house of representatives and peaches are president. It has happened twice before in history. 1868 with president andrew johnson, and president bill clinton in the 1990s. They were never removed from office because that is the responsibility of the senate. In the u. S. , republicans control the senate. What are the objectives democrats are driving at . Making tarnished trump with the label of having been the third president they can tarnished trump with the label of having been the third president impeached. They can have senators vote to save the president , and that could be a costly vote. Shery could it work for the president s trophy . I mean, given that he could continue to denounce this witchhunt that he has been talking about for the last couple of years . Brett without question. In fact, the democrats have struggled and stumbled in several points over the course as theyast nine months, have controlled the house of representatives. They have tried to hold hearings to hold trump to account, and yet, whether it was with her mother report, transform the llerar report mu report, they were not able to get traction. There is trepidation that this will fall flat. Paul it is a difficult calculation for the democrats. A costbenefit analysis in some ways. Cost of not bringing and impeachment outweigh the cost of bringing it. Istt what you are seeing this fervor that her face, and not just the extreme left of the base, but now, more into the center, is calling for impeachment. They will feel that if the house of representatives did not pursue this path, then they did not do their duty, and i think those democratic members of the they havest believe until their own reelections to pursue this. Paul lets turn to a different topic. Certainly no less important is the subject of trade. I know what you are going to say. How effectively did you feel President Trump advanced the cause of a new global trade framework at his u. N. Speech . Brett it was interesting. Many of the World Leaders in the audience i think for smirking, not laughing this time. Braggadocios,oastful braggadocious close for talk for world trade he has not gotten a nafta deal through congress. The reaction of many leaders are well, why dont you first get a new trade deal in place, and then lets talk about reworking the entire system. He spoke about japan, which is very much in early stages. He spoke about the u. K. , but that has not even begun. Shery in that sense, given what has happened domestically with the impeachment drama playing out, does it make it more important for the president to get something out of a clay deal trade deal with japan . Something more concrete with china now . What to the uns General Assembly as well as in some of his comments in recent days is he is fishing around for a deal, whether it is with iran or china. For him, it is putting much the same, but he has to get something, something that he has accomplished, something he has built and not just bulldozed, on the world stage. He came into office as the great negotiator, the person who was going to bring this savvy business mindset and rework all of these deals. At least when it comes to the international stage, he has very little to show for it. Especially when it comes to those talks with iran. He talked about the potential sit down with president rouhani. Uranians want nothing to do with that. The iranians want nothing to do with that. Brett unfortunately, the iranians are not having any of it. They already had a deal. They are not looking for trumps legitimacy, they are not looking for a splashy summit. They want to return to the deal that they had. More optimistic that something can be worked out here. Unlike with north korea, there are not any changes that are necessary. Just like southwest the usmca deal that Trumps Administration did not negotiate, you make some superficial modifications at the margin, and we can call it a nodeal. Trump can trumpet it out as the best deal the world has ever seen. That is what we are working towards. Paul you mentioned the pyongyang playbook. We do not hear a huge amount about north korea anymore. When President Trumps administration began, north korea did not have nuclear weapons, nor did it have intercontinental missiles, and now it has both. How did it work out . Brett i wrote a piece in Business Insider over the weekend, saying that, in my view, the diplomacy of this administration, with north korea, is pretty much dead. They have tried three times to bring the heads of state together. They have attempted a variety of ministeriallevel engagements, with mike pompeo giving getting stood up on the streets of pyongyang. It just has not worked out. There is no strategy. There are no clear path forward. Paths forward. We will have to look at north korea under a different administration. I would just caution that trump has given away a lot and gotten very little in return, so the next administration is going to have their work cut out them because kim jongun is not going to be in a mood to negotiate after having gotten so many splashy summits. Shery the president and his you. N. Speech really in his u speech did not talk about coalitions or what the United Nations might do in the world stage. What does this world of bilateral deals instead of multilateralism mean Going Forward . Brett i have started to describe it as a postamerican era. Whereas before, the u. S. Was holding up all of these international institutions. Nato, the United Nations it off, retreated we have into a situation, certainly in certainly ino a the pacific, even on security and political issues, on a bilateral basis, if that. I have been in tokyo and beijing recently, and leaders feel as though the United States has abandoned that role of providing some modicum of stability and security in the region, and so, these countries, in asia and other parts of the world, are going to need to carve out new roles for themselves. You are seeing the crown in europe and examples from the ron inse mac europe and examples from japan. Others are going to have to fill the void. Unfortunately, we are also seeing efforts like by saudi arabia, russia, china, starting to throw more weight around and challenge some of the old traditions and ways of doing business on the diplomatic front. Shery great having you with us. Thank you. Brett bruen, Global Situation and president. Lets now get the first word news with su keenan. Su thank you. We start with the European Union, which is weighing an aggressive response over airbus subsidies, threatening further deterioration in transatlantic nations. The wto will authorize u. S. Duties on nearly eight dollars of e. U. Goods. 8 billion of e. U. Goods. To boeing now, the jet maker will sharpen its focus on safety when the 737 max 8 returns, forming a new Oversight Panel and recommending changes to the Companies Structure and design companys structure and design practices. It is reaching a settlement with the families of the passengers who died last year. Terms of the deal are not clear, but reuters says each family will receive at least 1 million. Initial estimates of the cost of the strike at General Motors has topped out at . 5 billion. Credit suisse says that is how lost. Rofit g. M. A researcher agrees that the vehicles costing 8000 a day, each one averaging 8,000 in earnings, pushing total losses for gm to 544 million so far. Confirmed, which has economist confirmed as managing director, continuing europeantion of a in the role. She succeeds christine lagarde, who is off to the ecb. She is the first imf leader to come from an emerging market. He sent running signs of Global Growth continuing. Global news, 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan. This is bloomberg. Shery coming up next, my interview with the ceo, devin dillon. This is bloomberg. Paul we are counting down to asias first opens this morning, and we have got japanese futures looking the yen currently trading a little bit stronger against the u. S. Dollar. 107 point72. This is daybreak asia 107 point72 107. 72. This is daybreak asia. Shery has declined amid concerns. Despite this, he sees Investment Opportunities in chinas tech, biotech, and Consumer Internet sectors paid i spoke to him in new york. Internet sectors. I spoke to him in new york. It is not easy to get capital valuations. The Public Markets are not willing to value a company where the private markets are valuing it at. It clearly shows there is a discipline coming back in. In this environment, it is good thing. Shery do you have mentioned disappointing ipos. The iposo into before they come to Public Markets, right . Dilhan we have typically tried to go in at the midstate Growth Equity levels so that we can follow the trajectory of a company, put more capital to work, and we have sometimes done very early, especially in areas like sustainable living. Plan based protein, vertical farming. Plant based protein, vertical farming. Your is that still strategy and would you ask a company to think twice before you actually make your debut . Dilhan right now, we would rather focus on growth. The idea of going public is one that should only come about when they are ready to do so, when the market is ready for them. It takes a lot for companies to transition from being privately recordeding a publicly company. There are many stakeholders involved. Ceos need to be comfortable for the time when a company should go public and we are encouraging them to think about that journey in a different way. Shery what does the market in china look like . You have 25 of your 26 . If you are invested mostly in the consumer story and china, right . Dilhan we have been invested in the consumer story, yes. Shery are you worried about the trade tensions . Dilhan the consumer story is a very domestic story. Consumption is very much dependent upon confidence. So far, the consumption lori in inna has shown some story china has shown some effects from the trade tensions. It looks good in areas we are focusing on, whether it is technology, biotechnology, or in the Consumer Internet space. Concerns over that way in which the chinese economy is evolving. Shery if you continue to see these trade tensions involved with the u. S. , that will not leave the Chinese Consumer isolated. Is that your expectation that perhaps what the chinese policymakers can do will offset some of the impact of the trade tensions . Dilhan the Chinese Government has many more levers to rely upon than most other governments do. They are focused on ensuring that the effects of the trade tensions are not felt to the full extreme, as you would normally expect it to be. I think they are focusing very much on the consumption story, the domestic consumption story. There has been growth in china over the last five years to 10 years, and that should be the pillar of growth for china in times to come. Us howthe ceo telling the Chinese Consumer story is dependent on confidence. Sophie in hong kong has been taking a look at how the sector has fared amid the trade spat. Sophie your today Consumer Staples have been yeartodate Consumer Staples have been the darlings. Investors are betting on companies that are better questions from terror threats while the rampup in terror threats while the tariff threats. I want to show you the valuations are looking lofty. Yeartodate, the 42 stops on the cfis 300 index have cfi 300 index have raced ahead of earnings. The average one standing at 33. There could be triggers for a reversal from earnings to hint at pboc easing. Biotech firm the had a weekday view, weak debut. That sector is being put to the test ive more Biotech Companies are going public at a time when china is ramping up its program to cut the cost of generic drugs, which has put pressure on pharma stocks but could bode well for innovative biotechs, paul. Paul i want to get you across some breaking news on the bloomberg terminal. More on the ongoing weowrk ipo story. Softbank is in talks to raise its investment in wework by 1. 5 billion according to sources cited by the ft. That would see softbank invest at least 2. 5 billion dollars but would reduce the price per share. The sources do say the talks are early, and the renegotiation is just one of several options being considered. Masayoshi son could decide against investing altogether, but one of the options on the table is in boosting softbanks investment in wework by 1. 5 billion. So we will keep you across the details on that story. Plenty more to come. This is bloomberg. Paul lets get back to our breaking story from a few moments ago. Softbank in talks with wework to increase a 1. 5 billion dollar investment, according to the financial times. Meanwhile, Goldman Sachs looking to offload part of its stake in a 3 billiondollar credit line it helped arranged for softbanks vision fund. We are joined by tech editor vlad. Lets start off with this story that wework that softbank might boost its investment in wework to the tune of 1. 5 billion dollars. Really doubling down there. How significant is this . Less well, this is more or in line with expectations. The scuttlebutt regarding the stepping down was that it was softbank who was engineering that whole thing. And this new investment seems to blend in with that. It may well have been conditional for the ceo to step down because of the controversy about him centralizing too much control of the company into his own hands, for softbank to put more money into the company, and basically keep it going. It is because wework is one of the company is notorious for its high rate. It has a lot of honey it needs to spend every month just to keep itself going. With ipo being pushed back because of its constantly dropping valuation, it needs a new boost of cash. That is what softbank seems willing to pursue. Shery softbank boosting its investments just one option. It is possible that it may decide against investing altogether. So what are the odds of that happening . Are i would say that they quite low, because softbank is honestly one of the biggest investors in wework. It invested more than 10 billion. One of the criticisms softbank has been the fact that it has the valuations of companies preipo such as wework. Softbank went in at a valuation of it doubled. Whereas wework now estimates to be in the teens of billions of dollars, so soft think would really softbank would really want to put its money in so it can backup its initial investment and make a return on it over the long run. Paul all right. Tech editor vlad savov in tokyo. Thanks very much for joining us there. Shery breaking news at the moment. We are hearing that the u. S. Is imposing sanctions on certain Chinese Companies over transportation of iranian oil. State department with secretary pompeo now saying that this is confirmed for knowingly engaging in a significant transaction for the transport of oil from iran, including the knowledge of sanctionable conduct contrary to u. S. Sanctions, so the u. S. Now imposing sanctions on the following chinese firms. Concord petroleum, a shipping company, a shipping tanker, as well as others. Now, this is coming as the u. S. Of course has we imposed sanctions on iran in november of 2018, so the u. S. Now imposing sanctions on certain Chinese Companies over the transportation of iranian oil, including knowledge of sanctionable conduct contrary to u. S. Sanctions that were reimposed back in 2018. And this really is against those chinese firms such as china concorde petroleum, a shipping company, and others. Paul. Paul thanks very much, shery. We are just a few minutes away from the open here in asia. We have futures for the asx currently pointing higher there. 25 percent. Nikkei futures higher by almost 1 . We had news of a limited trade deal being signed between the japan and u. S. The issue of auto tariffs being left to one side. We did see equities in the u. S. Closing higher. It looks as if asian equities are poised to do likewise. Plenty more to come on the next hour of daybreak asia. Stay with us. This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Paul asias major markets are about to open. Yvonne im shery ahn in new york. Welcome to daybreak asia. Paul the u. S. And japan signed an eminent accord as the u. S. Drops the threat of trade tariffs. With china President Trump switches tone yet again, saying a trade deal could happen sooner than anyone thinks. Prominent trade figures talk to bloomberg. We will hear from brian moynihan. We are seeingan stocks higher, the nikkei 225 adding about. 5 while the nikkei is Holding Around 1 07 after a fourday advance. Traders will be watching buying, bonds already we are seeing the fiveyear yield nudging higher after falling to a record low wednesday amid easing bets from boj. Later we hear from the governor a 3 30 p. M. This afternoon. Lets check on what is happening in seoul, we have the kospi adding about half a percent er halting a 13 day game gain wednesday. We are checking on chipmakers. In the korean u. N. Is holding the korean yuan is holding steady. Checking on the asx 200, adding about. 5 . We are also watching tariffs after the worlds biggest dairy exporter posted a second Straight Year loss as it retreats from Global Expansion plans. Australian bonds are heading lower after we saw overnight losses and treasuries. Paul. Paul thanks, sophie. Lets check first word news with su keenan. Su thank you, paul. President trump followed pessimistic china comments at the u. N. By saying a trade deal could happen sooner than we think. Addressing the General Assembly tuesday, the president insisted he would not accept what he calls a bad deal. Yet 24 hours later, he implied the opposite, that things are moving ahead and the two sides could reach an accord. Negotiators are due to meet in washington starting october 7. Right now china is way behind us and well never catch us if we have smart leadership. Way behind. We have picked up trillions of dollars and they have lost trillions of dollars. They want to make a deal very battling very badly. It could happen. It could happen. It could happen sooner than you think. Su the European Union is weighing an aggressive response to potential u. S. Tariffs over airbus subsidies. The wto will authorize u. S. Duties on nearly 8 billion of eu goods, the tariffs could hit next month end target planes and parts and Luxury Products such as wine and spirits and fashion items. Divisions are widening at the ecb, with journey with a german policymaker resigning from the executive board more than two years early. It is the biggest show of dissent in the mario draghi area. Era. Rio draghi neither she nor the bank offered a reason for her departure. She had been on the board since 2014. Ae imf has confirmed bulgarian economist as managing director, continuing to do edition of a european in that role. The former world bank chief executive started october first, succeeding christine lagarde, who is going off to the ecb. First imf is the leader to come from an emerging market and she says warning signs are flashing on Global Growth continues to disappoint. Global news, 24 hours a day on air, on tictoc and twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im su keenan. This is bloomberg. Yvonne the u. S. And japan the u. S. And japan agree to a limited trade agreement and the Prime Minister confirms the u. S. Wont impose auto tariffs for now. The u. S. And japan are not alsolongtime allies, but the worlds biggest and third biggest economies. It contributes to our economies of the global economy. Shery our correspondent joins us from tokyo. U. S. Trade representative Bob Lighthizer did say that at this point, the idea of car tariffs on japan was not something on the table. So it does look like, although it is not codified directly in the agreement, it does look like the mood music from both sides appears to be that japan has dodged this bullet. One way to look at this interim agreement is that it is ultimately the culmination of a yearslong campaign by Prime Minister abe to blunt President Trumps protectionist tendencies, at least with regard to japan. , how Prime Minister abe went to new york to meet with trump shortly after trumps election in 2016, visited him at tower. He has assiduously courted trump, gone to maralago resort, done everything he can to nurture the relationship. Putwhen the United States blanket steel and aluminum tariffs on a number of trading wasners, japan almost alone not responding in kind. There was no titfortat move by japan against the u. S. , so they have done everything they can to be accommodating at this interim agreement staves off the car tariffs that would have been crippling. Japanese exports are already shrinking because of the chinau. S. Trade war that has damaged growth damaged Global Trading volumes. Japan has a fight on with south korea at this point, so it was extremely important, and we are going to be hearing from the japanese Auto Industry lobby later today, extremely important to forestall these car tariffs. In terms of the interim agreement itself, experts are saying sure, there are some benefits for both sides, particularly some of the american agricultural producers. It is not what anybody really wanted, but it is a step forward. Ironically, it gives American Farmers some of the same access that the australian and Canadian Farmers now enjoy in japan, because of the tpp agreement President Trump famously pulled out of upon taking office. Chris, you mentioned protectionism. Andn has some form as well has managed to protect ice rice farmers as well in the limited agreement. At looks like difficult issues have been set aside. What is to say they are not going to come up again . Is plentydoubt there of room for further disagreement. American rice farmers have been trying to access the japanese market for decades, and they will still be waiting. Traditionally it has only been times when the japanese domestic rice crop has failed that japan has reluctantly opened its market to overseas producers. We dont have the Automobile Industry in this agreement. That is going to be important. Another aspect that isnt included is Government Procurement practices, which again, we are in the tpp which again, were in the tpp agreement. Paul lets bring our asia editor in for more. We have seen Japanese Equities underperforming relatively speaking. Could this change the picture . Certainly removes potential headwinds. The japanese car industry is such an important, both direct and indirect mover for the japanese stock market. We have a chart we can pull up which shows the rest of asian equities havent been doing that well over the past year, but japan has been doing sick for can leave worse. Japan is very exposed to the and whata trade war, has gone on with the one with yuan. With the that reduces japans competitiveness. So any thing that offers a trade boost to japan is going to be welcome. The other thing with japanese markets is, they are actually at the point where they are just peeking up above the level they struggled to hold up before. So if they can gain from here, that could set them up very well. And we were pointing out earlier this week, if there is a boost in sentiment, you might see Japanese Companies start to invest more of the 4. 8 trillion dollars of cash they have got sitting on their books. We expecting chinese policymakers to take more action, given mixed signals from the economy there . And what would that due to to markets . That is veryh, much what markets inside and outside china are looking for, because the drumbeat for chinas economy keeps on banging away at a very depressing tune indeed. Fromd some news out Bloomberg Economics overnight, taking a look at their early tracker for how the economy is doing in september there. It is still doing badly. That is not a shock. The data that came out for the previous month has been pretty poor, but the early signs for september are not good given the way pmis globally went. You would think that chinas pmi, which is out monday, would also be week. The problem is that china is so committed to a gradual process. They have got a lot of things that are going on. It is easy to think that the trade war is the main driver for chinas economic weakness, but there is a lot that is going on other than the trade war, and there are a lot of things causing the chinese economy to slow, which are actually positive policy drivers, policy motives. To see consumer demand play a greater role. It wants to see manufacturing play less of a role. It wants to avoid setting up a property bubble. So all of these things make it very difficult for it to give the sort of big, bazooka stimulus, which is what a lot of Market Players are thinking is desperately needed. That is why chinese bonds are underperforming and why chinese stocks are struggling to go much further, after what was a very, very good first half of the year. I think chinese stocks are still amonge than 20 , they are the worlds best performers. From the chinese policymakers point of view, the equity market is not really causing them all that much of a stimulus to go large. Tothey are likely to stick their shery garfield, thank you. While President Trump defense himself from an impeachment inquiry, one leading senator once the whistleblower complaint that started the process made public. Paul from trade tensions brexit, up next, navigating global instability is a priority. Blank bank of americas brian Blackstones Stephen Schwarzman join us. This is bloomberg. Shery you are watching daybreak asia. Chairman Anand Mahindra says india stands to gain in a big way. He spoke at bloomberg Business Forum alongside blackstone ceo Brian Moynahan bank of america ceo Brian Moynahan and blackstone ceo stephen schwarzman. What you have seen the last two and a half years is the leader of the developed world to come pretty far, and on the chinese side they are trying to figure out how far and how fast they want to get someplace. So the two countries got quite point theay, at which chinese just went through. They agreed to a variety of things, we thought, than they looked at the hole and they said, goodness, lets not do that. Now this is a starting again. And meanwhile, what has happened in this two and a half years is havethe two countries started, as a result of false starts and other tactical stuff, are starting to decouple, which is very dangerous. I want to dig into that. Increasingly we are expecting this world where it is china and its allies and the u. S. And its allies. You sit in an interesting place figuratively and literally between china and the United States. How do you see it . Stephen i see it as an enormous opportunity. Im just being truthful here. I see it as an and normas opportunity. Im being truthful here. For a long time it was difficult to admit there could be a conflict with china, add that india could be in this game as a buffer against china. You went to the council on Foreign Relations and nobody would admit that. I think it is out in the open and President Trump has made it even more out in the open. Going to houston and listening to our Prime Minister, he is very committed. There is nothing up at nothing but opportunity for india. We have to play our cards right and see that we are viewed now as a very, very appropriate ally for the u. S. , as a buffer both in defense terms, frankly. If you look at the number of defense exercises between the u. S. And india, they are proliferating dramatically. Defense procurement from india is already burgeoning. We used to buy more from the russians. Of thenkly, the tenor relation with india is right. This is a democratic country, a country that values ideas, a country that has scale and growth, so there is profit for Global Companies there. I think india has nothing but a unique opportunity right now and we have to play those cards right. I think it will be a winwin for both the u. S. And india. Stephen i agree peering having been with ceos and Prime Ministers this morning, talking about Business Expansion in india, its natural recipient. Some of the difficulties have been dealt with. They can be improved, Everybody Knows it. The broader context here is global trade. Brian you go back and say, if the chinau. S. Situation will take longer, what can we resolve in the interim . Happen givenit can the context this week, the usmca, which is critical to get done. Because as much as india as a beneficiary, mexico and canada and trade with the u. S. Is a beneficiary. The weight scale and mexico is lower than parts of china. They could you use the jobs. A lot of people are moving into manufacturing there. There is already an integrated manufacturing supply chain. Canada is a different situation. To keep the u. S. Moving forward, there are three or four things to knock out. Everybody hopes for chinau. S. , but there are couple of things to knock out, first is the usmca. I dont think politically they can push it through even though i think both sides wanted. If they can push it through, that would be good and give more time to work on china. Chairmanendra group bank of america Ceo Brian Moynihan and blackstone ceo stephen schwarzman, all there at the bloomberg form. This is bloomberg. Asia. This is daybreak im shery ahn in new york. Paul im paul allen in sydney. The threat of impeachment is hanging over President Trump. He has again defended his phone call with the ukrainian leader, saying there was no push, no pressure. Lets go to Senior International editor jody schneider. President trump ordered a release of the call memo. What does it show . Shows he was clearly talking to the ukrainian resident about investigating joe who is of course a rival for the 2020 president ial race, and trying to tie mr. Biden and his son to alleged corruption in ukraine. He basically said in the call that he wanted them to be investigated, former Vice President biden. His allegation was that he had ousted or sought to oust a top prosecutor in ukraine, because basically tried to tie him to some corruption involving hunter biden, joe bidens son, who was on the board of an oil company. Those allegations have proven to be false. They were shown to be that in ukrainian documents. Now on, the question this call is whether he explicitly sought to tie that request for an investigation to aid to ukraine, or to stopping aid to ukraine. The president says this call shows he didnt do that, that it wasnt connected. The ukrainian president says that, but president but plenty of others including House Democrats are saying this shows the president tried to use his influence as president to get a country that is dependent on usaid to investigate a rival. Shery how are republicans reacting . Course continue to stand by the president. However, some republicans in the including former republican president ial nominee mitt romney of utah, are saying they are very concerned by this. Mitt romney says he is deeply troubled by this. And the question is, what will they do in terms of investigations . The house we can presume will continue and double down on its investigations, and looking into this impeachment inquiry. However the senate, which would vote on any impeachment, which is republicancontrolled, is unlikely to do that. The question is, do they try to do other investigations . Because this has political implications for those running in 2020, those running in house races and those running in senate races. Shery despite the impeachment drama, we saw markets reacting pretty positively to trade optimism. Now we are hearing that the u. S. Is sanctioning some chinese firms over a rainy and oil. Iranian oil. Jodi we have just seen new headline information on this in the past halfhour that the u. S. Is imposing sanctions on certain Chinese Companies over their transport of the iranian oil. The u. S. Has of course sanctioned iran and pressured other countries not to help iran , to isolate iran on the world stage. So this would seemingly be trying to push Chinese Companies , and pressured them not to transport that oil. I will be getting more information about this in the next hour. Paul Senior International thanksjodi schneider, very much. Lets get a check of business flash headlines. Swedish form matic swedish phone maker ericsson expects to pay 1 billion to resolve charges in the u. S. On breaches of ethics. The inquiries involved breaches in six countries including china. Ericsson says it would affect thirdquarter results by 1. 2 billion. Shery balaton has raised more than 1 billion in its ipo. That would make it the eighth ipo in the u. S. It this year in the u. S. This year to top one billion dollars. This follows disappointments from other Companies Marketing themselves as Game Changing tech brands. Paul the ebay ceo is stepping down amid pressure from activist investigators activist investors to break the company apart. The company faced demands to sell assets and buyback shares. The ceo has been appointed interim boss. Shery coming up, more highlights from the business form including my conversation with colombian president yvonne uque. Tte ivan do this is bloomberg. This is daybreak asia. Im su keenan with first word headlines. The u. S. And japan agree to a limited trade agreement after washington with through the threat of imminent tariffs on car shipments. President trump and shinzo abe signed the first stage of the pact at the u. N. Assembly. It asade office described an early achievement while the president said he expects a comprehensive deal in the near future. The u. S. And japan are not only longtime allies, but the worlds biggest and third biggest economies. The trade deal is quite significant. It not only contributes to our countries, but also the global economy. Brexit yet. S of her u. K. Prime minister Boris Johnson returned to a noisy house of commons, refusing to quit or apologize for his unlawful suspension of parliament. He challenged opponents to trigger a snap election, saying the Supreme Court judges who criticized him more simply wrong. Britain is due to leave the e. U. October 31, and johnson says it is going to happen with or without an agreement. This is time for parliament to finally take responsibility for its decisions. We decided to call that referendum. Again toed time and respect it. The people of this country have had enough. This Parliament Must stand aside and let this government get brexit done, or bring a vote of confidence and finally face a day of reckoning with the voters. Su in israel, Benjamin Netanyahu has been tasked with forming a new government, despite no clear sign he can end the political stalemate. The decision by the israeli president to give netanyahu first crack at building a coalition comes just a week before he faces a hearing on corruption allegations that overshadowed his last three years in office. Notelection this month was can with former military chief benny gantz. And the bank of thailand left its benchmark Interest Rate unchanged but said it may as ther steps to rein in central bank expects growth will be lower this year than previously forecast. Growth is undermined by the strength of the tie currency, which gained more than 5 against the dollar so far this year. Global news, 24 hours a day on air, on tictoc and twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im su keenan. This is bloomberg. Paul thanks. Lets check on the markets and get over to sophie cameroon hong kong. Kamaruddin in hong kong. Yuan is weakening wealthy while the yen is stronger. Up, welds are ticking could see a cut after five year yields hit record lows wednesday. We are seeing that pick up two basis points this morning. Treasury yields softening. Treasury futures tech higher. The fed president Robert Kaplan said the message for markets is that Monetary Policy is not enough on its own. Seeingland bonds are pressure, demand slowing in sales from new zealand and ahead with jobre vacancies report due from down under. Tokyo steelmakers jumping on the u. S. Japan initial trade deal, nippon steel rising the most in 11 months, the stock upgraded to buy along with a jf from merrill lynch. Paul. We will see china celebrating 70 years of the peoples republic. We are looking at the nations dramatic transformation in the challenges it faces today. Those challenges are growing joining us to discuss, Asia Society Senior fellow isaac stone fish. Isaac stonefish. Heard from a source that said the decoupling of the worlds two largest economies, the u. S. And china, is not smart, but to what extent has the decoupling taking place has the decoupling taken place . Not much, the u. S. And china have to be locked in this sometimes uncomfortable embrace. A lot of people are now thinking about the needs each country has for its partner. Paul we have heard a lot of conflicting rhetoric. We should be getting used to it, President Trump unloading on chinese trade practices during his address to the yuan General Assembly, but then today saying a deal could come sooner than anyone thinks. You say china might prefer President Trump to win reelection in 2020, because he is more predictable. Can you explain . It is a shameful thing to call him predictable. But i do think the chinese seem to have grown used to this hotcold, angry oneday, conciliatory the next. It is also important to point out trump has done such a successful job at alienating American Allies who could be working with the u. S. To counter some of chinas unfair trade practices encounter them of the communist partys pernicious influence globally. We just had a trade deal with japan that was far more slimmeddown than it would possibly have been under another president , and possibly maybe for trumps successor, trumps alienation of europe, there are a lot of examples of things trump is doing to help the communist party by dint of what he is doing. Shery does the impeachment drama and washington increase or decrease the chances of a trade deal with china, as you consider what President Trump might want heading into the elections . Isaac that is such an important question. The calculus is, do the american somee want a victory, want good economic news, or do they want to keep seeing china as more of a punching bag for trade woes . If i had to guess, if the American Economy keeps doing well, it will be easier for trump to announce a deal with china. It will bring more good news. If economic numbers continue to be poor, we could see trump trying to blame china for that, saying, im walking away from a deal, im really defending american interests visavis china. Shery whatever the president says, we have seen these trade escalations and trade tensions, and the approach from china has been pretty measured. They have really held their ground on things they want to bring to the table on these negotiations. As that what you are seeing on the ground in china . What is the mood when people are talking about this trade war with the u. S. . Isaac the more official view you get from professors and people more linked to the party is, dont worry, we got this, everything is fine, china is strong, china will stay the course. But i think below that official rhetoric, there is a lot of anxiety, both about chinas Economic Future and also about the tightening grip of the communist party domestically. In the lead up to october 1 holiday, we are seeing far less spaces for individuals to maneuver. I think some silly examples of people not being allowed to fly pigeons and kites, and having to show their id and a lot more places. Can feel quite constrained when that happens, and i think there is a worry that jie zheng thing shes xi jinping is using the trade war to try to crack down domestically. Paul you are seeing heightened paranoia and china. Where is that coming from . It is hard to say. We dont have really good insight into the top levels of what is happening in the chinese leadership. But it feels like they sense an existential threat to their grip on power. Perhaps that is from the protests in hong kong. Perhaps they feel that the national tenure is shifting in some way and they are getting less support. Perhaps there is a nasty power struggle going on at the top, perhaps between xi and the military or xi and other members of the politburo standing committee, which runs the country. But it does seem potentially that things are shifting out of alignment and that is quite worrying for people both at the at the the middle and bottom of chinese society. Paul and how does beijing handle the situation in hong kong . That looks like we are set up for another weakened of protesters that weekend of protests that could spill into the october 1 celebrations. How does beijing handle this . We would like to see beijing handle this as a mature power that can value hong kong as both a pressure valve of chinese discontent but also as a creative, important financial center. I think the worry is that someone, either at the top of the party or some local official, feels this is going to embarrass china or embarrass jie ping, soying xi jin they start shooting protesters or round up protesters and announce martial law in hong kong, and i think that is something very few would want to see, but that might happen. I dont want to predict what is more likely, other than to say i hope tolerance can prevail. Shery isaac stonefish, senior fellow at the asia society. Thank you. Unit is set to debut in the hang seng next week after raising 5 billion in one of this years biggest public offerings. And an exclusive interview, the ceo spoke to bloomberg about the revived share sale. Asia isusiness in amazing. We are the number one brewer, especially in the premium segment in asia overall. In china we are number three in volume but number one and profitability by a wide margin. That is because premium bands Premium Brands commend a entire margins. The ipo is established to create a local champion that can be a vehicle for consolidations and other things that could be done in Southeast Asia mainly. That is done now, that is in the process, shares will start trading monday the 30th. So we are very happy to be where we are. Is that a playbook you might use in other places around the world, say africa . The model you set out in asia . Or is this different . Know, that is very much a mirror of what we have in latin america, what we had in latin america for many years, and which we had a local agenda controlled by us. And that was an amazing vehicle deals with get two local families in Different Countries and really expand within the region. We think that same magic could happen in asia. Partd when you think about of the reason to do this deal was to pay down debt, how far along are you in that process . And what are other moves you might consider to keep on that track . The main reason for the ipo is to create the local champion. We said from day one, we dont need that to get to our target of being below four times by the end of next year. We felt we needed a local champion there to mirror what we happen in latin america. What we receive will be used to pay down debt as well as proceeds coming from the australian sale, around 11 billion. Shery that was ab inbev ofs ceo speaking exclusively to bloomberg at the Global Business forum in new york. Coming up, more highlights including my conversation with the colombian president. This is bloomberg. Paul this is daybreak asia. Im paul allen in sydney. Shery im shery ahn in new york. Colombia has a message as the trade war drags on. It is ready to do business. Que is opening du up his markets and seeking investors. I spoke to him at the global forum in new york. Forrade wars are not good anyone, you the u. S. , china, the emerging markets. Diversifyas tried to its exports and consolidate markets. In the case of the u. S. , that is our number one trading partner. We are on a permanent asus exploring opening markets. This year we will have for the first time exports of colombian green peppers. Aggregatedrting Value Transformation products. We have also opened in the u. S. Lately the avocado market. So we are trying to identify new products that can access the market and generate a positive impact in colombia. Regarding the asian market and china, i was on a mission a month and a half ago and we reached two or three important results. The first one is that we opened the banana sector for colombia. That means we are going to get year of 40 million per bananas that are going to be bought in the chinese market. We also opened the ground for the colombian avocado in china. We are now working on opening the beef sector, and we have also made big calls on chinas investors to identify projects in columbia where they can put resources. There is a lot of funding taking place on the road system and exploration of doing something in the port system. Shery is there any promise at the moment . There was anue announcement of financing a 400 Million Dollars to a fourthgeneration highway in columbia. We also have the interest of a port that is going to take place iochia coast. Shery what about other parts of asia . I know you have a freetrade agreement with south korea . President duque we have a freetrade agreement with south korea. We had a visit from the Prime Minister a few months ago. And we have called, and it will be a great opportunity for colombia, to open the beef market. We also want to get with tropical fruits, but at the same time we want to be able to call korean investment to dissipate in Infrastructure Projects in colombia, and sectors like Creative Industries where south korea has been taking a lead in asia. Shery what is in the works right now with other Asian Countries . President duque with south korea we are working on a mission that is going to take place soon. We will identify the sectors that shall be opened, because a freetrade agreement was approved for years ago when we need to accelerate it. In the case of japan, we had years ago been on the negotiation of our freetrade agreement, but now we are trying to have a partial agreement so we can open the spectrum for colombian products. And there is also interest in other countries. For example, we have heard from investors in singapore that they want to get to the colombian local Capital Markets and explore what is taking place in the Fourth Industrial Revolution in columbia when it comes to ai and blockchain. So we will continue to call investors worldwide to look at colombia as the place in latin america to put assets. Paul that was colombian theident ivan duque at Bloomberg Global business form. Business flash headlines. The worlds biggest area exporter posted a second straight loss, a record. Shortfall is bigger than a year ago. Fonterra says the loss was 380 Million Dollars. It will distribute less in dividends after making no payment so far this year. It says investments in china and south america have soured. Shery goldmans tax looks to offload its investment in a 3 billiondollar credit line for the softbank vision fun. We are told goldman has approached other Financial Institutions to take on some of lending obligations and some of its risks. Us weworkces tell will likely postpone its ipo until next year following the resignation of ceo adam neumann. It was expected to be the secondbiggest ipo in this year and threatens 6 billion of credit financing successful contingent on a successful offering. Is in talks with banks for a new 3 billion loan. Dont forget tv , you can dive into any securities in bloomberg functions we talk about. Check it out at tv. This is bloomberg. Upthe conversation has amped over the past year or two. We dont have the right to exploit. Time is running out to address Climate Change. It is right they hold our feet to the fire. Climate change is a huge economic issue. We have got to start thinking outside the box. To scale up what we are doing today, we should be working much more closely, the private sector and public sector. Paul World Leaders from the public and private sectors talk Climate Change at the Bloomberg Global Business Forum. Goods union leader expects to be Carbon Neutral in the next decade. Speaking to bloomberg at the forum in new york, the ceo said companies shouldnt get caught up in potentially bad plastics. For 2030 we said we want to be Carbon Neutral in our operations. Just last week we announced we are now sourcing 100 of our electricity for maneuverable sources on five continents. We dont think should wait for policy change on we can take under our own control, and those of the types of actions we are taking. It is part of this weeks General Assembly focused on Climate Change, and we really welcome the initiatives on Climate Change being announced this week. Aspect of sustainability has to do with packaging and that is important for unilever. There are a lot of plot texts plastics around the world right now. How are you addressing it . Plastic is a wonderful material, good carbon footprint, lightweight and efficient, the issue is too much of it ends up in the environment. For us is key plastic in the economy and help the environment. We are tackling it as less plastic. We are using more recycled material and for example, in the United States by the end of this year, 50 of the plastic we use ,ill come from recycled sources and then no plastic. We are looking at plastic alternative materials. The big danger, though, is that business moves into alternative plastics will have a much worse carbon footprint. So we have to beware of hysteria against what is fundamentally a good material when used responsibility. Shery thats the ceo of unilever. Lets get a preview of markets. Sophie we are watching Chinese Companies that are targeted by u. S. Sanctions over the transactions of iranian oil. Shipping has been suspended in hong kong on the back of that. There is plenty for hong kong observers going into the session. At new world, flagging a drop in home prices. Congressional committees have given a not for the hong kong democracy bill to the put to the floor. There is caution surrounding city shares, set for the worst quarter since 2015. The hang seng has lost nearly 350 billion since the end of june, so it is lagging global 2006,by the most since which has some strategists forecasting a potential turnaround by the end of the year given depressed valuations. Paul. Paul thanks, sophie. Before we handed over to Bloomberg Markets asia, lets look at how we stand. Take a look at the japan nikkei, higher by a half of 1 . We got news today President Trump and Prime Minister abe have signed a limited trade agreement between the two countries that does exclude the thorny issue of car tariffs, that perhaps helping drive Japanese Equities a little higher today. In south korea, the cost be also higher by. 5 , in australia, the market is weaker, off 1 10 of 1 right now. China assetahead, managements ceo discusses strategy. Our market coverage continues. This is bloomberg. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today