Beijing. Yvonne it seems like the stress of the markets easing off a bit, which is a good sign. It is how you read the sentiment. Is it that the valuations are overstretched, uncertainty over tax reform, also, is it just the end of the year and traders are closing their books . It seems traders are using this opportunity to buy. Betty it seems to be the mantra you keep hearing these days. Adding to the media mentions of buy the dip. These markets have been going up and up it is about time for a correction. It would not be a surprise. He seems to be in that camp, once we see a correction, it is time to buy into these markets. We will see how it plays out. In the meantime, lets get to first word news with courtney collins. Bhp says litigation continues disaster, butg warns insurance will not cover the extent of its liabilities. Andrew mackenzie told investors investigations in the incident that killed people in brazil. There is a degree of urgency in withdrawing from u. S. Shale, and he sees further scope for cutting costs. Tencent rose in new york, tapping the most optimistic of Revenue Growth estimates. They reported a rise in thirdquarter sales, fueled by ads and the hit game honor of kings. Wechat is on almost one billion smartphones in china. They also have a stake in snap. Stocks fell as army put resident mugabe under house arrest. It had rallied this year as people but equities. Mugabe has ruled zimbabwe since independence 37 years ago. By thel was caused sacking of his Vice President , a move seen as opening the way to take over. Nafta talks have resumed in an atmosphere of tengion and animosity. Thinly veiled threat to scale back border patrols if it does not like the way negotiations are going. To thehaving a challenge u. S. Lumber duties. Wilbur ross warned of administration is patient with the whole thing losing patience with the whole thing. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am courtney collins, this is bloomberg. Lets take a look at how the market open is shaping up. Looks like a turning point from the selloff we have seen globally. Lets get the latest with Sophie Kamaruddin. They areust an hour, opening later at 9 00 a. M. , hong kong time. Caution is prevailing, though the session could go either way. U. S. Stocks fell by the most in to go months. Bonds are tracking the rally. We saw treasuries overnight. Yields on treasuries pick up slightly. The dollar looking little changed. Oil is continuing to drop, but softening the pace of declines. As you pointed out, the buy the dip sentiment at tempest investment. They are eyeing the entry point at the nikkei 225 between 21000 00 points. We are seeing losses continue for the benchmark today. The seventh session of losses for the nikkei 225. Energy, materials leading the drop with kobe steel among the biggest lagers. It was downgraded to neutral. Shiseido among the best performers. Things to consider in the tokyo session. The yen is holding euro one month high, near uncertainty over u. S. Tax reform. The aussie dollar below 76. Bonds are climbing before we get october jobs data at the bottom of the hour. The aussie finishing around 76 by the end of the year. Before i go, a quick stock check. Fairfax media in sydney is thinking this morning. Its listing40 of in a domain, macquaries target . 70. The u. S. Fda said tests show increased rates of heartrelated deaths. We do have a bit of pressure there this morning. Betty Sophie Kamaruddin the stocks you need to watch. President trump we saw earlier today presenting his marathon trip in asia, saying the u. S. Standing in the world has never been higher. He said he wants new respect from regional leaders about after many the drum on security and trade ties. Host trump our foreign welcomed the u. S. Delegation with incredible warmth, hospitality, and most importantly, respect. This Great Respect showed very well our country is further renewed americas confidence in standing in the world has never been stronger than it is right now. Betty joining us from washington, our bloomberg editor joe sobczyk. Dos comments reflect reality . It is hard to tell how much respects he got from the asian leaders he met with. He came home largely emptyhanded. There were no major trade agreements, breakthroughs, or other sticking points. He was billing this originally as a speech with major announcements, but there was none. It was more a campaignstyle speech. He wanted to make the point, something he promised on the campaign, and implicit criticism of his predecessor barack obama, that the u. S. Had not been respected in the world, and now it is. That was his main message without having to give any substance to what he could do for the benefit of the united states. He came back home to d. C. With plenty of drama when it comes to tax reform. Dropping thiscans bomb, adding a repeal obamacare before they actually vote. We have heard ron johnson saying they could pass it without me, let them. Is that likely going to stay . Joe that is going to be a tough road for them. The house will be voting tomorrow on their version of it, which does not include the repeal. But the senate version, which is still being worked on, does include the repeal of the Obamacare Mandate for insurance. Objection is not back, it is how corporations, llcs and other passthroughs, are treated in the tax code. He says it comes at the expense of other types of businesses. But republicans only have two votes to lose. Susan collins is sounding very skeptical about the Obamacare Mandate repeal, as is lisa murkowski. Of the threeone senators who sunk the Obamacare Repeal earlier this year in the senate, has not been heard from. There is not much margin for error. They have some difficulties ahead with getting everyone on board. Will certainlyy be interesting for you guys out of d. C. Joe, thank you. Planning tod to be invest billions of dollars of its vision fund in saudi arabia. The cash would bolster crown Prince Mohammed in his attempt to balance the economy. Lets get more from tokyo. Peter, seems there has not been any letup when it comes to where softbank will invest that. We heard about uber and now this. What will the deal consist of . On masayohe saw shi son has been busy. Putting as much as 25 billion in debt asia. A new city of the government is planning to build on the red sea coast. In addition to that, there could be as much as 10 billion going into saudi electricity as part of their efforts to diversify away from oil into Renewable Energy and a variety of other projects. The company is in talks about these deals and we should find out more soon. We should find out details on where this money, how exactly this money is being deployed. What are the Big Questions around this . It is aroundf exactly how the 15 billion will be spent in this new city. Going in government is tamil to come up prince cracking down on corruption. He wants to move the company away from its dependence on oil into other areas. Softbank see encouraging its Portfolio Companies to set up operations in some of these locations. It would Bring Technology expertise and perhaps operations of its Portfolio Companies to help both in the development of this new city, as well as saudi electricitys efforts to diversify beyond oil. Betty why would softbank want to do this now, why would Masayoshi Son want to do this now . Said he developed a close relationship with the crown prince, mohammad bin salman. The crown prince came to tokyo. Someone said they met for 45 minutes. And as a result, saudi arabia agreed to invest 45 billion into his vision fund. He jokes that is 1 billion a minute, not bad for a meeting. The two men have developed a close relationship. Saudi arabia is helping putting capital into this investment used for uberhas and other ride hailing companies. Now it looks like softbank will help in making these investments into saudi arabia. To put that money in context, saudi arabia had 7. 5 billion in Foreign Direct Investment last year. This would roughly double the money coming into the country, a big deal for them. Betty thank you, peter ahlstrom. Lets look ahead to the future of health care with California Institute for Regenerative Medicine chairman, coming up in half an hour. Our special look at the future of health care. Yvonne tencent posts its fastest growth in seven years. But can it keep up . We will get a view. This is bloomberg. Yvonne this is daybreak asia. I am yvonne man in hong kong. Betty i am betty lou in new york. Postednese tech giant its biggest blowout quarter in more than seven years. Asian correspondent Stephen Engle joining us for more. It is the Gaming Division of tencent propelling these numbers. Our of kings is so popular. In the previous quarter we saw gaming residue of tencent surpassed that for the first time. In the Third Quarter they built upon that. Like you said, smart phone or mobile gaming revenue up about 84 . Honor of kings really driving that. 1 14thack then were just the size of today. A lot of big gains. Revenue up 62. 5 billion yuan. That Beat Estimates by some 7 . Net income up 69 . U. S. 2. 7 2. 72 billion u. S. Dollars. Honor of kings has billions of users. Their Advertising Sales also surging. They are getting more successful advertising distributed to their billion plus users. Wechat, online ad sales up 40 . All this growth allowing them to expand into other areas, less saturated areas, also they are competing against the likes of alibaba. Also autonomous driving, cloud services, financial services, music and movies and other strategic investments, like most recently, snapchat. Yvonne lets look at these spinoffs, it has been good when it comes to china lyft. One, what is expected . Will it be another blowout . Stephen it looks like that, the initial graymarket indications up 50 from the ipo. Also part already priced at the high end of the expected range. 11. 50. Rices upward of it is over chris oversubscribed. Over subscribed. Priced at the high end. Have tencentbackdoor alibababacked in front of the whichn this environment, is already surpassed the previous tech boom. At some point it was up more than twice as much, 100 , just a week ago. Betty thank you so much, Stephen Engle on tencent. We are getting more news on the us trillion guest producer approving they have been approached in august from Harbor Energy for a takeover offer. But they rejected that offer and 5n indicative price of 45 australian dollars per share,. Saying they rejected it because the indicative price was inadequate. They received a proposal on august 14. They are not currently engaged in talks at the moment. Still seems there is tension. Were still waiting for trading to come through in sydney. Lets talk about china tech. We were talking about tencent earnings. Lets expand our conversation with brandon lin. Fund up 30 year to date. Thank you for joining us. A big beef for tencent. We are used to them beating on earnings, but this is something. Third time in a row we have seen a surprise in the double digits. They cannot be growing like this forever. When does it start to slow for tencent . Brandon first of all, great to be back here. We have been tracking tencent for a long time. We have been investing in china for the last 16 years, investing billions of dollars in the region. For tencent, you can see their numbers, starting with their Earnings Report in may, really picking up, and every quarter keeping the beat. That will continue. Their fundamentals are very strong. In the Earnings Call last night, which the president participated in, there was a lot of discussion and questioning around the next generation of mobile games, which is in the Survival Game generation, which is interesting and quite addictive. They already have preregistration for two of their new games at over 20 million and it is not even launched for testing. We believe the fundamental trend will continue. And they will deliver strong numbers in the quarters to come. Yvonne it was not all good news. Just some highlights, we had mobile games outperform. But it is becoming a more competitive space, the light of net ease knocking off honor of kings at least for one month. Seen a blip in terms of user growth. Is there concern we have reached peak wechat . Brandon if you add up we chat wechat, 980 million users. Billionssages sent was per day, which grew 25 , year on year. If you look at those numbers, they are still quite strong. There comes to a saturation point in the law of huge numbers that echo system continues to expand. Ecosystem, they are scratching the surface in terms of monetizing. Betty on that Conference Call he said spinoffs like what they did with china literature, they are not in the business of spinning off their periphery businesses. You believe that . Brandon yeah. Distinction,a big if it is 100 , organic homegrown, those would not be considered for spend off. But Companies Like china literature, they already had the leadership position, but they cobbled it together to be a dominant player. True m a and acquisitions, Companies Like that, like ,encent music, similar path cobbled together, the dominant player. To be somewhaty spun off with the controlling st ake in ipos. Gives them flexibility to partner with partners other than tencent. They can go beyond that. It incentivizes the Management Team to really push and grow their independent businesses. Looking ather out Tech Companies in asia versus the u. S. , i want to bring up a chart i had shown earlier, g btv 3694. It shows how both the u. S. And asia tech shares a rally. But still a considerable discount china shares are trading at versus their u. S. Counterparts. Do you expect that to likely narrow over the next few quarters . Brandon actually, i do not think that is necessary. The asian Tech Companies you look at tencent, alibaba, now they are the sixth and seventh largest, most valuable companies in the world, behind five other Tech Companies in the u. S. You look at the growth rates. Even if we keep the same multiples in terms of the discount, because the growth rates are faster, stronger in asia for alibaba and tencent, the valuations are going to continue to perform strongly. The if we do not narrow, shares still have upside, as long as they continue to draw up strong numbers. Betty thank you so much for joining us, brandon lin from spq asian capital. This is bloomberg. Jumping ino shares extended tradeoff to the Company Forecasts its first Revenue Growth in eight quarters. The current period climbing as much as 3 from a year earlier, up to 11. 9 billion of profit. Ceo Chuck Robbins has been focusing on software and services that lets corporations remotely manage and support their network. Yvonne Deutsche Bank and Commerce Bank rose in new york, a merger might be back on the cards. They have a 3 stake in deutsche. That bank is the leading shareholder in both. Both lenders try to revive revenue after scaling back their investment operations. Andment both infuriating unpredictable numbers. Betty it is 11 30 a. M. In sydney. Flat with aing slight sell in the markets. We are getting breaking news on the jobs numbers in australia. Yvonne a little off the mark when it comes to employment. We are seeing the month of 3. 7k jobs, after expecting the 13,000 mark. Rate coming down at 5. 4 . That was slightly better than expected from the 5. 5 . High momentum may have kept the rate ready stable. It looks like the most gains were in fulltime employment at 24,000 jobs. Parttime employment has dropped for the month of october. The Participation Rate slightly off, but in line at 65. 1 . Betty quite a big of a miss 3. 7 the employment number, 0 jobs created versus the 19,000 expected. We did see the aussie dollar drop on this news. Lets get more Market Reaction with Sophie Kamaruddin. Dip in theery slight aussie, somewhat steadier now, u. S. Cents. W 76 have quite a bit to assess on top of the latest october jobs field figures out. Westech sees the currency ending the year at around the. 76 handle. When it comes to the share market, slight losses for the asx 200. Gaining up over 1 , along with property shares. We could see aussie shares extend the stocks for a fifth straight session. Taking a look at equity movers, lets pull up aboard and show you the likes of fairfax. That is something ahead of the trading debut. Minerlithium minor is falling. Ramsay health is leading. Harbouraking over energy. Those 72 billion offer was too low. We now have the aussie dollar gaining 0. 2 , back above that. 76 handle. We might see aussie buying against the kiwi, leading to the drop we are seeing for the new zealand dollar. Check out the nikkei 22 stocks now fluctuating as investors assess whether we are seeing a correction or rout when it comes to the pullback of currencies looking unchanged elsewhere. The yen trading below 113. Taking a look at the nikkei 225, you have Consumer Staples and health care leading the charge. Softbank, fast retailing on the rise, along with shiseido. With santos shares up a 10 , seems like there could be negotiating tactics. But the ball will be back in Harbour Energy groups court. President trump has talked up his asia visit in a white house speech, claiming progress on trade and in gaining the respective regional leaders. Pause