Ballooning pile of debt. Go straight in a breaking news and data out of singapore releasing their gdp numbers. Lets go to haslinda allman. Numbers. Sean the strongest quarter in about three years. Gdp coming in a 5. 2 . At a 5 estimate. 2. 9 the quarter before. Quarter and quarter we have 8. 8 before manufacturing going game busters up 18 . The government has revised gdp andthe year between three three point 5 between one to 1. 5 to three and a half percent. This is like the optimism express. Remember, he said gross for the year may exceed 3 . That is coming through. Some economists have already raise their own estimates for the year. Looking at about 3. 2 , its previous estimate was 2. 8 . As you know, singapore, highly intertwined with a global economy. It is benefiting from the recovery in global trade. Byufacturing is lifted demands. Trade rose 12 year on year, building on the 9 increase for the last quarter. Other industries, like services, are also showing improvement. Just singapore, we are seeing solid gdp numbers across Southeast Asia. Malaysia, thailand have all reported the strongest growth in years. All beating estimates, all amid the fed. Caution is the word. It has to push through with economic restructuring if it wants to keep growth sustainable. Lets talk about inflation data. What is expected that is due out later today . Haslinda about 1 00 p. M. In singapore, it is expected to come in at 1. 5 year on year. It has been well below historical averages. Likely to change anytime soon, but, if the economy picks up stronger than expected, then there will be some pressures. When we spoke to the authority of singapore last month, he sounded a note of caution. He said inflation will climb at some point. Under those circumstances, they need to be forwardlooking. Timesore eased three between january 2015 and april of last year. Kept a neutral currency bias. A zero depreciation given subdued installation. It would tie in next year by seeking a slight depreciation and the Exchange Rate or that is one thing to watch. On those breaking singapore gdp numbers on what to expect later today. Lets go to the first word news. Uber is up, over is facing three investigation a broad and called to testify between congress and reaction to its covered up data breach. Italy, the netherlands and the u. K. Are looking into what they lack ofobvious security. While the federal trade commission in washington is urged to step in. Hackers toen paying keep silent about last years attack. The chances of a new brand coalition in germany seems to be rising, with senior members of the social democrats thinking they can name their price for rejoining chancellor merkels team. Others are adamantly opposed to the idea and are prepared to face a new election. The chancellor has ruled out trying to form a minority government, and indicated she would prefer to go back to the voters. Boss is calling for a competitive tax system in the u. S. , and says if he has to pay more, so be it. Comments at the Economic Club of chicago, he said he felt bitter about the banks treatment following the financial crisis and said he would never trust the government again. He also commented on chinas decision to relax the rules on Foreign Ownership and said jpmorgan is raring to go. They tied my hands. The American Government to compete with them, and the chinese too. Now it is time to let me go. I want to compete there. Billionaire investor, mark cuban, has a question for president trump, asking if you knows how big an impact alibaba has had on the stock market. By percent of the increase in stock market value, two hundred 50 billion dollars and seven point five times our trade deficit with china has gone to one chinese company. Alibaba shares have almost tripled to that 190 since its 2014 ipo. There has been no response from the white house. 24 hours a day powered by more than 27 hundred journalists and analysts in more than 120 countries. This is bloomberg. Lets take a look at how the market open. Cannot quite call it a market open here today. Korea, an hour later when they start treating. What are we looking at . A little lowly start to her it we have stocks and wellington and sydney on the move. We are expecting a light day of trading, especially after the tepid handoff from wall street. Shares in australia are taking a breather with most groups losing ground. Oil holds near it twoyear high and metals rose. Old is now giving up some games sparked by as the fed made its view to the dovish and. Other g10sng with under pressure. The kiwi falling the most against the dollar this morning. Below 112, treating your, a nine week high. Check out the ringgit up one third of a percent trading below for 10. This is a hawkish central bank. We do have strategist saying that with election booming, that may provide speed bumps for the rally for the malaysian ringgit. Lets get a check on the seeing dollar. For the dollar. Very exciting after a twoday rise. It has been about 6 against the greenback in the past 12 months, which has made pressures and may take into account what the siding if they will pull the trigger on tightening in the first half of next year or in the back end. I am showing you stock movers in sydney this morning. Online travel pair falling to a january low. Creditdowngraded to sweep. Automotive holdings is on the refrigerated logistics to hna. A pretty lowly start to this lonely start to this day. With the start to the markets in asia. Janet yellen is not the only official saying doubts about inflation moving higher. The member the moment of the meeting shows a deeper than ever divide between policymakers betting inflation on the verge of accelerating and those who say rates should not move higher. Bloomberg Global Economic policy maker here with a testing with digesting these minutes. There are worries about week inflations getting stronger and it is not surprising. The longer inflation has fallen and stayed low and not moved up, even with unemployment, just hovering above 4 , it would seem logical that people with the carter. Including janet yellen, who just spoke in new york and warned more emphatically than she has in the past about the dangers of inflation. Even though she still says there are reasons why inflation can and will move higher next year. Fomc minutes were interesting. Even though many officials were in favor of hiking rates in the near terms, specifically december, they showed a deeper divide over inflation. , that probably means more than half, that is the consensus, they were ready to hike the key rate in the near term. The march rate hike seems to be in question and the rapidity of hikes in 2018 as well. Also, a few at the fed saying inflation must arise before they agree to vote for another rate hike. That is pretty important as well. They all agreed they will monitor inflation developments closely. There was a lot of talks about tax reform as it goes through, tax overhaul, tax cuts that help boost that. There is a concern about a growing asset double. It is not like it was all on the week side. Of agreement about growth, less about inflation. The dollar fell and the bonds rallied after minutes were released. Is this market doubting the feds rate path in 2018 . Kathleen they are certainly wondering. Lets go to your bloomberg. There was such a strong consensus for rate hikes in 2017 , probably why everyone is on board for another year. There is a consensus, but which way will it go if inflation stays weak . Few inflation security could grow to many. There is a dovish tilt to this minutes. Maccarthy sees hot this graduates who are looking at a stronger economy who do not want to fall behind the curve. Called versus what he perpetual pessimist. He said we should be glad for the hawkish gradualist. That is a mouthful. David buckle was very clear on bloomberg television. Of the Investment Solutions group. He thinks it will be much harder for the head fed to do those three rate hikes next year. But listen. It is all about inflation. The december rate rise will happen. Having read the minutes, it would not surprise me if it is not unanimous. I think the big question is, what happens in 2018 . Will see enough inflation for the three rate rises that they are suggesting for 2018. Yes the fed will probably raise the rates, but they will also have their economic projections. It will be interesting to see if the dots pull away from three rate hikes. See a consensus around the lower number. Certainly, very interesting for jay powell, who will be the next fed chair, as he is approved by the senate to take over at the time when this whole conundrum seems to be a lot more trouble for the fed in 2018. Heelan his tour before starts. Our Global Economics and policy editor. Shoppers around the world maybe going online in record numbers, but british retailers say there is still room to grow in bricks and mortar. Later, we are joined by that managing director. Just ahead we talk risk and geopolitics of a Global Macro Hedge Fund that says a threat from pyongyang is taking it away from south korean markets. This is bloomberg. Good morning, this is daybreak asia. Yvette macro hedge funds worldwide are the industrys worst performers. It has been a tough few years. Look at this chart. Years, the last five macro funds have underperformed the industry. The only exception was in 2014. One asia fund is right ahead. Singapores global macro is enjoying a 47 gain. The funds 2017 surged through october has been the worlds best performer a lot among macro funds. Joining us now is the macros deputy fund manager who joins us live from the lion city. Thank you for joining us, and congratulation on the performance this year so far. What you have to say for those that say macro is dead . Or you woulday probably disagree with that but why do think it has been a tough year for macro funds out there . You. Ank i think many macro funds adopted very different philosophies compared to us. They are very concentrated while we seek to diversify and optimize and use leverage in order to maximize. It is a different philosophy that has carried us this far. You have already dialed back risks in your fund. You have delegated one third of risks to equities, one third to bonds, as well as currencies. Do you think you can generate that same return in 2018 with this type of Investment Strategy . August yes. We are not betting on a single event. I think diversification is the key to our performance. Yes, we do dialback because we think that the markets are not very volatile. There ise that potential for surprises to come in the horizon. It is betty here in new york. We heard so much about macro hedge funds failing and underperforming. You think part of your success has to do with the smaller side of your hedge fund under 1 billion, and the fact that a good amount of that money is and your inhouse, versus outside investors . Hasst it certainly positive benefits for us because we have more leeway. However, the philosophy of the strategy is to run at the high fall. It is like driving in f1 car. You diversify, optimize your race. You use leverage prudently. Then you expose the entire outside returns. Even though we are managing outside money, i think the reason they are coming to us is because the outside return. The way we manage risks has been proven throughout the years. Betty given that and the story that ran on bloomberg that talks about your performance, are you getting a lot more phone calls . Are you seeing a lot more flows . Are you accepting more flows into your fund . August yes. We actually only opened our funds for outside investors since february 2016. A lot more inquire wes since last news and bloomberg inquiries since the last news and bloomberg. Betty lets pull up the chart on stocks and how much they have risen. Some might say, if you take a look at where stock markets, august, have gone up since 2012, a lot of it has to do with the monetary stimulus. They madeture the bet on easy money, they did well gimme the picture for 2018, because it is very uncertain, right . How long that stimulus will stay and what each of these banks are going to do. August all right. For next year we are basically looking forward to a climate where Central Banks seek to promote stability. They will go carefully, they will tread carefully and they are very dovish. It is still lower for longer for interest rates. We are watching the political and geopolitical space carefully. This is where the surprises will come from. Central banks will basically be very careful not to derail the growth that has been happening so far. Political surprises is something that you cannot predict. We will be watching carefully, we will stay diversified between the three risk factors we have. Watching outays for black swan. Top of your list is north korea . Because this is something that will affect the north asian economies. We have been out from south korean markings market since Early September markets since Early September. Will pushorth korea its agenda to become a fullfledged Nuclear State in the years to come. In order to get to the negotiating table, and a very strong position with the u. S. Thank you for sharing your views with us. With asia financial services, deputy fund manager. You can find indepth analysis on bloomberg radio. Tune into daybreak asia at 7 00 a. M. It via bloomberg radio. Com. This is bloomberg. This is daybreak asia. I am betty liu here in new york. We have been focusing on Business Leaders that are helping transform chinas greater bay area. The plan is to connect nine cities with hong kong to create this hub of innovation and technology that rivals silicon valley. Joining us from beijing. The focus today has been on health care and ai. What are we seeing when it comes to development around Artificial Intelligence coming out of this greater bay area . Om we have been speaking to the Vice President of a Company Called i fly, which is little known outside of china, but within china it is probably the leading ai company that has been picked by policy makers here in beijing to be a National Champion in terms of driving ford the Artificial Intelligence agenda, along with the likes of baidu, tencent and alibaba. Recognition, voice image recognition, Machine Learning and robotics work to expand their footprint in sectors like education, hightech, learning and they have invested in Companies Like japan and israel. They bought a company around virtual reality, but they are also focusing on health care. That is why we are talking about ai and health care, basing their product and health care being used to closely automate and synchronize from the Health Care Sector and products. Tot is something i talked the Vice President about. I also talked about there are in d spending. A lot of their ai is generated by heavy spending on the fund. Listen to what she had to say. We are extremely confident with ais industrial prospect in threefive years. We must continue to increase our investment and catch the window to establish daily use of Ai Technology. On the other side, we have seen 30 to 50 annual growth through during the past few years. I were revenue has grown by over 100 . The real profitability stays at a relatively low level. That is the result of in capital important to r d. The vice was president. There are pushing into the Health Care Sector. They had developed a robot that can take in patient information and make diagnosis. It passed a test and passed a medical licensing test. More accurately predicted and was able to better diagnose a records orealth illness is better than a human doctor. Tot is something they want see rollout in 2018. These robots who can work alongside doctors to help with diagnosis and treatment. Tom mackenzie there, our china correspondent from beijing. This get a check of the business headlines. Systems rose to a twoyear high after a takeover offer. Some say could top 10 billion. Talks between amsterdambased axel global. Said there is no guarantee a deal would be reach. It is a bigger shareholder for the holding just under 10 . Betty a log and consoled your to do list. A look at the tough task face facing the next pboc governor. This is bloomberg. It 30 in singapore. We just got the gdp numbers that were beating expectations for the third quarter. Final numbers coming at 5. 2 year on year. The fastest growth we have seen in over three years in the lion city. Betty things looking up there in singapore. You are watching daybreak asia. Lets get to the first word news. Morgan has, j. P. Welcomed chinas decision to relax the rules on Foreign Ownership. He says he is raring to go. Wide raging comments at the Economic Club of chicago, he said he felt bitter about the banks treatment following the financial crisis. He said he would never trust the government again. Also called for a competitive tax system in the u. S. And says if he has to pay more, so be it. We should get rid of deferrals for hedge funds. If you want to raise my rate, so be it. Whatever you do, do not have an uncompetitive tax system and a very competitive world. That is not safer america. To confuse the two is a huge error. Zimbabwes interim president flew home from south africa promising a new unfolding democracy. He will be sworn in on friday and will be the ruling partys candidate in president ial elections next year. He is a former spy chief and it was his hacking that led to the downfall of the former president. Said to be above 90 . The u. N. Hedge tribunal has forced the military commander to life in prison for genocide and crimes against humanity. That includes the massacre of around 8000 muslim men and boys in 1995. Europes worst atrocity since world war ii. The verdict is alas for the tribunal, which has convicted 88 people for war crimes committed in the former yugoslavia. A Police Operation is underway and papa new guinea to forcibly remove about 400 essilor and seekers from a former australian detention center. Leaven have refutes to despite australia cutting off food and water three weeks ago telling the group to move to a new residential facility. They arem seekers say not safe in the communities and the center is unfinished. Global news, 24 hours a d