Minister the right to negotiate the split from the european clear resolutions the trade war union. China to braces and no clear meeting insight as well as tensions around brexit and huawei and weak for a long struggle. Manufacturing data. President trump says any trade deal will be far tougher if he this points to how risky the trade war is for global wins a second term. Economies. In japan the nikkei down started. Get slightly. We expect pmi composites today. Look at the land the yen have the dow and the nasdaq off of at 10 5. 7 coming falling more than 1 as session lows of one of 5. 74. Industrial and tech shares led declines. 105. 74. Firmly in the red, and we continue to lose ground as we see trade tensions, concerns the kospi coast lower yesterday. Over brexit as well playing to 12114,5trading at the markets. Fors p 500 losing ground the first time in four sessions. Level. Weaker than expected we also have u. S. Factory data 1211. 45. Signaling contractions for the first time in three years. Treasury yields also under pressure. U. S. Futures not doing much. In outlook thats already been we have plenty of data coming battered by the japan south out of asia this morning. Let us see how things shape up. Korea spat. Are remaining take a look at australia and new zealand markets, the asx 200 is sensitive to the latest on the trading lower as well as kiwi trade talks. That was weeks after data in the u. S. Is pointing to risks with stocks. The trade war with global. E expect australian gdp recession still looming. A muted open. Red and green across the board, at the slowest pace but not a lot of big swings. Clearly a lot of caution. Of growth in 20 airs. Economists downgrade significantly their growth surveyomes below the prospects, timing with gdp number of 1. 4 percent growth we saw the rba set the key growth expected to be below 6 . Benchmark rate yesterday. To give you a quick look strengthening housing at Economic Data we are expecting. Japan bank pmi composite, markets. Singapore and hong kong pmis, australias Second Quarter gdp, mining lifting operations. Which economists are expecting the economy has reached a gentle turning point so well see if to have little change from the the data hold as well. The firsts chicken on previous quarters reading. Vices pmi as well as word news now. Boston fed president s expected to rise to 51. 7 from july. If you 1. 6 reading. Said the u. S. Economy remains relatively strong despite growing threats. The chinese yen, the central he is not convinced of the need to cut rates later this month. Bank has kept its daily fixing if consumers continue to spend above that seven stronger and Global Conditions do not than that 7. 1 level in an deter rate further, the u. S. Regrow at 2 . Apparent level effort to if so, no immediately policy stabilize the economy. Action would be required if you look at offshore and those kind of headwinds could onshore yen, you will see traders have not kept to that become appreciable. Concern. If they do and start slowing down the economy, we should react once we see it in the data. I do not think we should the ing sentiment amid anticipate necessarily that that is going to happen. Committing concerning as long as we are growing around sentiment about the trade war. 2 , i do not see nearly as much of a need for taking immediately thebut one session over policy action. Past month, and analysts are trump has stoked the protecting it could fall further to 7. 5. We are looking at the offshore trade war saying china should deal soon or face a tougher term weaker. We will have to look at how the should he went next years pboc prices it. Thanks very much. Election. He said the u. S. Is doing well in negotiations adding he is certain beijing would prefer to talk to a different lets check on the first word news now. Administration in washington. He warns china things would be stokedident trump has far harder should he win a the trade war. Second term next year. He said china should do a deal that hasand the storm soon or face tougher terms if he wins next years election. Flattened and swamped the he tweeted the u. S. Is doing bahamas is edging north toward well in negotiations. The eastern seaboard of the u. S. , living devastation in its wake. Dorian is now a category two he warned china things would be storm but leave the islands up far harder should he win a to 70 underwater, with ports second term next year. And airfields out of action, as air rescue missions get are lowering chinas underway. At least five people are known to have died but the government growth forecast to below the communist party target levels says the figure is affected arise. For 2021. Tanker sought by bank of America Merrill lynch and Bloomberg Economics cut gdp the u. S. Has disappeared from projections to below 6 due to satellite tracking off syria, prompting speculation that ship is preparing to transfer his the escalating threat from the trade war. Cargo to another vessel. The last signal from the ship bank of america also says chinas current stimulus is insufficient. Came on monday according to president xi jinping says the tracking data compiled by bloomberg. The ship is thought to be carrying 2 Million Barrels of oil and was briefly seized in communist party must prepare for what he calls a longterm struggle amid a slowing domestic gibraltar on suspicion of smuggling. Economy and an increasingly confrontational United States. Its tone toftened officials must display a spirit hong kong sang peaceful of struggle to overcome the demonstrations are permitted although violence would be challenges facing china, which punished. Will likely continue all the way officials continue their support through 2049, the 100th for chief executive carrie lam and dismiss protester demands for to universal suffrage. Anniversary of the peoples republic. Meanwhile prominent democracy china has softened its tone on hong kong, saying peaceful activists long visited taiwan demonstrations are permitted, to urge support for hong kong, although violence would be calling for mass demonstrations punished. In support of the protest officials continued their movement. Support for carrie lam and dismissed protester demands for global news 24 hours a day and tictoc on twitter, powered by more than 2700 journalists and true universal suffrage. Analysts in over 120 countries. Meanwhile, prominent democracy activist joshua wong visited i am jessica summers. Taiwan to urge support for hong this is bloomberg. Kong, calling for mass u. S. Factories in the demonstrations in support of the protest movement. Global news, 24 hours a day on air and tictoc on twitter powered by more than 2700 journalists and analysts in more joined the global slide for than 120 countries. Manufacturing with the imfs report for august falling more than forecast 249. 1. Summers. Ca on Economic Data front we expect to 49. 1. This is bloomberg. Getting he is lets get more from mliv is heading for a snap election strategist mark cranfield. After boris was defeated in the house of commons. I want to start with that, the labor opposition won support tensions frost really is Second Quarter gdp one gets the feeling we are being softened up for a and denied the Prime Minister the right to negotiate the split week read. From the European Union. The Prime Minister saying this week that there should not be any kneejerk reactions to bad numbers. Yes, quite right. The rba in their statement it means that it means thas yesterday did say they are ready to lower Interest Rates again, on the brink of wrecking any deal. Should the entry economic paul joining us now is the director of the institute for picture warrant such a move. Global finance and professor of it would not be too much of a finance at the university of new surprise. The forecast already for south wales. Just when you think this cannot get more complicated, it somehow Something Like a 1. 4 number, which by australian send does. Downwards is a low read on Jeremy Corbyn is saying he would recent australian sanders is a support an election a snap low read and gdp. Looking at the current context election, but only if not surprising. Legislation is passed taking no Slower Growth in many Key Countries which australia trades deal off the table. With. Its no wonder they would also suffer from some spinoff from then have to will this. Some countries even going into campaign, win, and repeal that . Contraction, part of europe, what would happen then . Germany in particular. I think the crux of the it gives you a signal that glow matter is that the labour party growth is pretty soft. Australia is bound to be caught see theg we want to up in that. His Major Trading partner, china house of commons passed this is having a tough time as well. Bill against no deal leaving the it is hard to going to anybody European Union, an extension of that australia is going to slow. It is not look as though still that, but the house of lords he is going to go into recession yet, which may be a relief to people. Should approve this deal. But theres no doubt that when we look ahead the specs are not in other words, it takes a few that great. Days, but the push for the so even of the Second Quarter current government is that might be relatively slow, it could get worse for australia in tomorrow they are also going to introduce, should this be the month ahead. The rbas on standby and markets passed, and election. Are pricing for lower rates in austria. Sometime before the end of the year. Shery so we are getting another health check about the chinese economy with more pmi numbers today. What are we expecting . They will probably show the an election. The question is whether the government has 66 of members of parliament to support, if you like, general election. That is a . Pmis are still above the 50 that is a question mark. Line, even other manufacturing the government may want to block was below that. The house of lords, so people these are services and composite going to the election, knowing numbers which are usually higher there is no deal approved by the than the manufacturing anyway. The trend is downward. That is the key point for people to watch. Two houses were no deal brexit, china, theres a key player down and i think we will find out tomorrow whether there are trend in all the major data enough members of parliament not coming out of china. There has been no respite this to support the government year. Position if the labour party is everything industrial, production, sales, on a downward not going to support the general election, that yes, with minimal trajectory wherever you look. So people will be wondering whether or not in the second half of the year, china really , 50 never approval can match some of these gdp forecasts, which the Central Government is projecting. Tomorrow rather than in a fewaho aboutna is able to hold 6 growth, it will only be by a narrow margin. Predict the outcome, but there i do not think anyone is under has been a number of the the illusion that the chinese referendum came out of left economy is slowing down. Field. Theresa mays loss of her when you look ahead into 2020, majority came out of left field. It is going to be very hard for this time around, you have the china to sustain anything like variable of the brexit party. The kind of growth it has shown impossible to predict an over the last couple of years. It is only a matter of time outcome. Before the government has to it is going to be difficult. Revise lower its own projections. That is the very issue. As long as the trade war continues the way it is, it is it is going to be difficult going to affect everybody. Because not only the house of commons is divided, virtually chinas red at the center of that. The trend is for Slower Growth. Cranfield, thank you 5050 when you look at people who support remain as well as leave, but out the same time, joining us from our mliv team you can follow more of this every family in the united story and all of the days kingdom is divided. Trading on the bloomberg at mliv the country is bruised, the parliament is bruised, the. You can get a market rundown and families are bruised as a result one click. Theres carver commentary and of this historic crisis facing this generation. Analysis from bloomberg experts seek and find out what is affecting your investments right now. Adding to gloom on the markets or the latest twists and turns a general election might provide for the First Time Since the referendum an opportunity for in the brexit drama, boris the electorate to seeing the johnson lost his forced vote as you keep Prime Minister. Pros and cons of remain versus setting up another class as leave as well as no deal exit rebel conservatives and u. K. Opposition debate another vote. With a deal if you like. Our Senior International editor could be alection jody snyder. Welcome step for the public for electorate regardless of the what is johnsons next move now fact the European Union is that he has suffered this saying whether this government crushing defeat in parliament . Or not, it is not to starts he is going the motion for a snap election. Going to change. Shery how would the european with october 14 penciled in as that date. Of course the brexit deadline is union feel about a corbyn october 31. Premiership . He says he does not really want i do not think they would another action. Like to enter into politics of he knows the public does not left and right. What one. My understanding is the european but he think that is the only way to try to get brussels to union has the principle on which move to get something done. He says the public should decide this framework of leaving the who they sent on october 17 to European Union has been negotiated, and i do not think deal with brussels. He has been playing this kind of they want to be seen that they are supporting one government game of chicken, saying he is against another one, but what we willing to leave, to take that know is labor potentially a no deal brexit, and to leave labor government would like to without a deal, and to try to see some kind of customs union. Force the hands of the e. U. , they want to have a deal before which so for so far has not they leave the European Union. Been forced. Parliament saw different yesterday and said we do not if they can get the option of want to play this game with the revoking article 50, always will strategy. We want to require you to have to go as had and have a delay. Given alive if you like now it is a test of wills in the current politics unfolding parliament. Arey in the meantime we in the United States the United Kingdom. Seeing the pound seesawing the u. K. Is announcing stronger in the session. Tim, what is the take for investors . Number one, youre right to 2. 4 billion of extra brexit funding. We have seen brexit uncertainty focus on the pound. Continuing to rise, of course. That is what is going to be the near term deciding factor from gtv chart showing the economic the standpoint of movement in rate, of the u. K. Many different security markets, indicators such as employment, whether it be bonds, stocks, et inflation, growth, certainty. Cetera. The thing that i would focus on what would work out better for , is quite clear the u. K. Economy . If we have a prompt no deal exit from the European Union where to think about the pound versus you can actually gauge what is the dollar which you have rightfully got charted. Going to happen right away, the the other thing to think about shortterm pain, or just the is the pound versus the euro. Continued uncertainty of not is a lotn why say that knowing what is going to happen next . Of what is going on with anything compared to the dollar has to do with u. S. China trade i think there are uncertainties with regard to policy. Both scenarios, basically. Is pound euro relationship the question here is, there have been number of scenarios put what is going on with breaks that than anything else. Forward by various researchers, brexit more than by even members of parliament, anything else. We are in a binary situation. If we end up moving through an which indicate that if you leave the European Union without any election, if thats what deal, you are going to create transpires, toward a hard brexit , if europe does not link rate we have further pound weakness. Enormous uncertainty, not only in the shortterm, but also the if europe does not blink, long term. Then we have a pound weakness. We are in a Global Economy where if we end up backing out and we we are facing a trade war have an extension and we move protectionism, free trade is no toward potentially even a deal in the most positive scenario, longer the name of the game. Then we have sick nick and more bilateral free upside on the pound. Significant upside on the trade within the United Kingdom and hundreds of countries may pound. And their implications for the happen soarily stock market. Paul in terms of the political what arei, quickly, including the United States. As you stated, they also have to come to a conclusion with regard to a deal, should they prefer johnsons opponents doing now . Theyre going to be for this the deal, what is the outcome of the deal and how the u. K. Can bill to delay brexit till leave. January 31, saying that takes that in itself might come to an essentiallytheyre trying to end with what is unfolding this take the no deal brexit off the week, whether it is going to be table and get negotiating room a general election which could to come up with another plan. Solidify in the minds of the electorate the opportunity for Boris Johnson of course has said he does not want to see that because he wants to keep alive see theo really the threat of that no deal brexit. To try to push the e. U. Into doing something. Of course he lost a ministry referendum, one way or another, the arguments in favor of leave yesterday. Theres a coalition there that or remain. Much for joining is forming and have got enough votes to hand him that defeat us. , why the biggest yesterday. They are feeling somewhat emboldened and wanted to move forward fairly quickly to try to delay that brexit yet again. News in the ongoing trade war is the american consumer. We have seen prime next, we will talk investment minister johnson insist on keeping that no deal Brexit Strategy with victoria fernandez. Strategy alive in order to have an upper hand in negotiations with the e. U. Any indication from that European Union that they could actually change some of those clauses from the Withdrawal Agreement . At this point the e. U. Has been standing firm, saying they need some kind of deal that they have not seen from Boris Johnson. That he is not come up with a plan. To bring them. ,nd they are not going to move to really look at this threat as something that makes them have to move. At this point, they are waiting to see what he can come up with and heand that is why he wants to tea keep that no deal threat there to force their hand. So find does not done that. How do you frame the fundamental impact of brexit on the u. K. Market. It is more complicated than this binary, saying brexit is good or brexit is bad for british companies, isnt it . Indeed. There is the kneejerk response that if the pound what drop a percent it was he a quick positive reaction and u. K. Stocks. But that only go so far. And it is quite important to break the market down. Theres a kregel element that is very to medically oriented. A critical element that is domestic. Local banks, retailers, real estate. Clearly, that is negatively impacted if we move toward a hard brexit that disrupt the economy and inflates imported costs. Segment,an even bigger however, that of the Big International brands. Health, the consumer, even industrials. That have global scope. Those simply benefit from an inverse relationship with the pound. When the pound weekends they get a translation benefit to the revenue. That is twice as big as the domestic group. Importantly, there is an even bigger section which is half of the market, so it is huge, which are nonpound reporters. And global in scope. So they do not really have any influence at all with the pound. And they are more driven by things like what is going on with oil and materials. And that is why over longer. Of time, big movements in oil and metal prices are actually shery jumping back into the more influential on the ftse u. S. Market action, where that one to punch of new tariffs and weak manufacturing data helped kick off the week on a bearish note. Su keenan joins us with more. 100 than the pound is. Industrials amtek leading the decline. Notver the weekend, we did gets quite often often dismissed and forgotten about. Have these tariffs. Now they are in effect. Right now it is quite critical given where oil and metal prices are, beastly in the tank. About theg concerns shery thank you both. Trade wars impact. What you will notice is the ,trongest sector in the s p 500 there with the latest on the markets and break that. The has a lot to do with still ahead, home sales in hong Hurricane Dorian now menacing kong tumbled 20 in value last the coast of the u. S. Month. Industrials taking a big hit. We will assess the outlook for real estate. Paul up next we are rating on lets go to the bloomberg for y. More ecodata from china as the why. R president warns of a long struggle ahead. This is bloomberg. The latest manufacturing data shows us contracting for the first time in three years. Of the most active stocks and some of the big movers, they are related. Qualcomm leading the semiconductor and chick chip sectors lower. Also revenue from huawei, which was big in the news, accusing the u. S. Of harassing its workers. Now boeing and caterpillar, part of the underperformance in industrials. Nextera Energy Pacing the gains for energy. Paul august was a pretty ugly month for the bulls. President trump is piling on the pressure, is into . Yes, forecasting a bloodbath for the markets did not help concerns. Check out the fiveday chart. We are at a oneweek low. If you look at the big, august, one of the clearly bearish months for oil. Cover, interestingly, now at a twoyear low, a fresh low on the day. Copper often the canary in the coal mine in terms of signaling a weaker economy. The fact we have manufacturing first in china, in the u. S. , again, another sign that Major Economies are starting to weaken in terms of growth. Shery thank you so much. With us now is a Global Markets chief strategist, victoria fernandez. Off a veryng turbulent august. September is off to a rocky start. Have you changed your portfolio application views given the latest developments . We have not changed our strategy that we are looking at. Take a try to do is longer term outlook for our clients, so really try to find some opportunities within the marketplace. We are doing that with dividend stocks, but look for opportunities across any sector. Health care is a place where we have added recently. Shery this is daybreak asia. Life science is a name have added to. That is a great play for that core value space. Homebuilders. Dded paul i am paul allen in sydney. Paul to meet the goal for the with lower rates, we feel there is opportunity. Are you playing the centenary in 2021. What some economists are saying consumer strength we are seeing is you have growth heading sub in the u. S. . The consumer is the key to the economy right now. 6 and the trade wars hitting they are 70 of the u. S. Economy. Chinas economy pretty hard. Looking at some of the names would you expect more stimulus where consumers have a strong and what form would it take . Play, names like mcdonalds, we would expect more stimulus that is a name we added in the because at the end of the day beginning of the year. We have continued to add. The trade war is back to its escalation phase we have tariffs we have some exposure to retail. From the u. S. Being entered deuced on klein knees dust we have names like walmart and even some auto supply stores. Chinese good imports of the weekend and there further of the weekend. Even discount stores. Discount stores have done really chinese export well recently. That is a good play for the manufacturing sectors. Consumer as well. Paul as you point out, the we expect china will release consumer is responsible for 70 further stimulus whether of the u. S. Economy. Infrastructure spending or in theerns about how long tax income taxes well. Paul you think things couldve consumer can stave off a recession, right . Been worse because the pmis of absolutely. The weekend were mixed but not it has to be a concern when they awful. And today we are looking at a pmi composite in services and make up such a large percentage of both. Their bossel expansion or you have the territory. Manufacturing numbers that came out today. Is the economy holing up pretty have seen slowing growth on the manufacturing side, in the u. S. Well considering is the Economy Holding up pretty well considering . Depends what data points you and globally. Look at the private any the consumer still seems to do well. These retail numbers were quite factoring surveys are ok but the official Manufacturing Survey strong. Has been struggling. We see that is a really good look at personal consumption here. Barometer of the trade war. 4. 7 . Retail sales were higher. The official pmi has it seems like with income deteriorated significantly what continuing to go up and spending the trade war is gliding. With the show continuing to go up, the consumer still has a little ways to go. Trade war escalating. Paul you are longterm that shows how sensitive chinas economy has been to the tosoh investment when youre looking with the u. S. Shery we continue to see at going long, where is the best place to be . We try to find opportunities beijing trying to target stimulus measures for small and medium size businesses at how within the market. Big is the divergence between we are not all in on one sector. Sectors, between small and big businesses . We look for stocks that have we are seeing the small come down with the volatility we have seen, try to find some names that work for us. Sectors are still struggling. I mentioned homebuilders. We added a name. And they will need further stimulus. We saw some opportunity with while there is the trade war Mortgage Rates low. Look for other things. Hurting economic conditions, look for dividend paying stocks. There is still the Deleveraging Campaign as well. Thats going to decrease Market Access to shadow financing has value volatility. Thely caught significant, use volatility to your advantage. Shery how many names you like small and Medium Enterprises are looking for alternatives. They need for supply for their are actually in the small caps credit is still important to china as well. Shery when we see the full sector . Impact of the latest iteris that it does not really compared to were, minted over the weekend . The outperformance of these larger caps. Tariffs, minted we do that domestically as over the weekend. It takes a few months. There is the frontloading impact well. And then after that we start to we have some exposure outside see the downtrend. The u. S. , but the majority of see. Difficult to our investments are largecap and they are domestic. Shery how much do you like the we have the tariffs that came in tech space . On the first of december, then trade tensions continue. The further tariffs in december. We will still have frontloading impact early in the fourth quarter. Huawei lashing out against the that is going to impact the u. S. Government. The tech sector has had export manufacturing data and particular. Volatility with the trade war we will see the downtrend more issues going on. We have to take a longerterm clearly materializing in early perspective when we look at these names. 2020. We were not huge holders of the looking to the broader faang stocks. We did out a little bit of facebook earlier in the year. Region, do except to see central bank easing across asia . We try to look at other ways to theres a limit to what central bankers can achieve. Play the tech space. A lot of these problems demand palo alto is a name we have. Oppotaco solution. A report coming up this week. Demand a political solution. Political demand a maybe not all the faang stocks. Look for other ways to play in solution. The securities sector. At the same time the trade war, the markets pretty much brexit, are having up local impact. So they demand that policy baked in more fed easing this month. Makers respond in a more expansionary way. We are seeing that for many Central Banks in asia. Im just wondering how much more rates are already very low pair easing you expect jan that. Beyond that. We have lending rates and credit. Rowth is very low i think that that is going to cut rates another 25 basis further expansionary measures points. The last meeting, what caused from Central Banks will be expected. We will start to see that if the Global Growth outlook them to cut was trade issues, deteriorates further, then fiscal policy will play more of slowing Global Growth. That is still there. A role in these economies. Shery we have already seen that the main thing is they dont happening in south korea and want to disappoint the market. Thailand, correct . Yes, that is right. If you look at pebbles speech from jackson hole, he talked so we would expect that to more about financial conditions were broadly happen. Quite accommodative. For example in japan, when the user conditions easier conception tax hike comes in first of october we will see a conditions were predicated on the fact the fed was going to more dramatic fiscal response continue lowering rates. From japan to really try and i dont think they want to take that away from the market and increase volatility. Shore up activity there. It does not mean there is a lot at the same time, for a lot of of consensus. We saw different fed president these nations, particularly today, bullard saying they need since southeast asia, taiwan a cut. Rosengren saying we dont need a even, fiscal policy can only cut. Play limited role. I think we will see a 25 basis it cannot relate completely point cut at the september insulate these economies from meeting. Raptures offshore given the shery great to have you with us. Victoria fernandez, chief market strategist. Offshore demand for fueling you can get a roundup of what their domestic economy. You need in todays edition of plenty more to come on brave of daybreak. Daybreak asia. This is bloomberg. Can customize your settings so you only get the news on the industries and assets you care about. This is bloomberg. Shery this is daybreak asia i am shery ahn in new york. Paul i am paul allen in shery this is daybreak asia. Sydney. Paul lets get a quick check paul zara is denying that some now of the latest business flash headlines. Demonstrations. Saudi aramco is expected to finalize its list of underwriters for what could be the biggest ipo in history. Sources tell us global it says it supports the one investment banks are finishing their pitches for roles in the china to systems policy. Offering. Aramco planes to make a decision business under pressure. In the coming days. Shery south koreas most the company is expected to name four or five banks to lead joint Popular Hotel app is moving into level coordinators while others india. Will have more junior roles. Zara is denying rumors and picking up more than 20,000 global clients in the process. The companys name means hey, lets play in korean and has grown from being the companys that supported hong kong biggest app for booking love hotels, and international protests. Business that has backing from a sovereign wealth fund. Saudi armco is expected to business is under increasing pressure from the protest with retail sales and tourism numbers slumping. Aheadsamsung is pushing finalize its list of underwriters this week for what could be the biggest ipo in its history. Sources say globalist vestment banks are finishing their with its folding phone pitches for offerings. Technology, preparing to launch a second device next year. We are told it is working on a the company is expected to name phone with a 6. 7 inch display four or five banks to lead the ipo as global court naders that slims down to a smaller square when folded like a while others will have generals. Clamshell. Samsung is aiming to make the coming up next, another step between wally and the u. S. , we gadgets slimmer and more affordable. Sources say the plan may hinge will look at that between on how well the galaxy fold huawei and the u. S. Performs. Still to come, we speak to asian we will look at the latest in the longrunning drama. Stay with us. Trade executive director deborah this is bloomberg. Elms. She says u. S. Consumers are playing paying the price of the trade war. Stay with us. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Paul its a 30 morning hong kong and our from the open for trading. I am paul allen in sydney. Shery i am shery ahn in new york. Youre watching daybreak asia. In db bank composite coming this is daybreak asia. The with numbers higher than expected. U. K. Is headed for a snap exit its in expansion territory at election after Boris Johnson was defeated in the house of commons. The labor opposition wants more 53. 3, from conservative rebels and denied the Prime Minister the getting the singapore opportunity to negotiate with the European Union. Economy pmi saying that at his fallen the lowest level since 2012. Johnson has threatened to sack all rebellious tories. We are talking about a market singapore pmi number of 48. 7 falling into contraction territory. That parliament is on the brink of wrecking any deal we lets now get you the first word hand control to news with jessica summers. The u. K. Is heading for of the negotiations to the eu. That would mean more delay and a snap brexit election after Boris Johnson was defeated at the house of congressmans more confusion. Comments. The house of commons. It denied him the right to there are growing fears india negotiate the split from the European Union. May have entered he says it hands the result of a quasirecession. The nations longest growth Brexit Initiative back to brussels. He has threatened to sack all slump is heightening concern it may be tough for policymakers to rebellious tories from the reverse the slowdown. Conservative parties. Tonight means that parliament to the most plunged in two decades. Unilever has warned products are is on the brink of wrecking any deal we might get. [jeers] recession resistant, but not recession proof. Flattened thehas of thed hand control bahamas is edging northward to negotiations to the e. U. That would mean more debt there the eastern seaboard of the u. S. , leaving devastation in its wake. And delay and confusion. More dither, delay and dorian is now a category two storm, but leave the island 70 confusion. Lower the chinese underwater with airfields under out of action. Growth forecast communist five people are known to have party growth forecast lower for died, but the figure is expected to rise. Tanker sought by the the centenary level. It cut to below 6 due to the as u. S. Has disappeared from satellite tracking Office Theory gliding effect of that trade out, propping spec elation the war. Bank of americas trade office ship is preparing to transfer says chinas current stimulus is cargo to another vessel. Insufficient. And the president says the the last signal came on monday communist party must prepare for what he calls a longterm struggle amid a slowing to according to tracking data mystic economy, and an compiled by bloomberg. The ship is thought to be carrying 2 Million Barrels of increasingly a slowing oil. Domestic economy and increasingly confrontational United States. Same people must display spirit day onnews 24 hours a of struggle to overcome the air and at tictoc on twitter, challenges facing china which powered by more than 2700 will likely continue all the way to 2049, the 100th anniversary journalists and analysts in more than 120 countries. Of the peoples republic. This is bloomberg. Shery we are half an hour away are growing fears that india may have entered because from the open in tokyo and quasid, as expansion sydney. At aa im taking a look recession as expansion is faltering. Someations longest growth see on airlines. Three to four bidders have is heightening fears may be tough to reverse the slowdown. Submitted initial bids for a stake. Hindustanoods maker im also looking at alcohol stocks today. Lever has warned that its products are recession resistant there is a report from the local but not recession proof. Paper that south korean imports of beer from japan plunged 97 in august from a year earlier global news 24 hours a day and tictoc on twitter, powered by more than 2700 journalists and analysts amid a popular backlash against in over 120 countries. Japanese goods as trade tensions im jessica summers. This is bloomberg. And relations between the countries sour. Lets get a check on what south korea imported just is happening on the markets now 223,000 worth of japanese goods with selena and beijing. A yearom 7. 57 million 40 minutes into the open of trade it looks like asian equities are set to follow the u. S. Counterparts with the earlier. This stock could be set to gain australia asx 200 showing the most weakness. The south korean maker of soju, all the sectors in the asx are shares have gained, so we could in the red with the Information Technology sector leading those see pressure on japanese breweries including asahi. Losses. Take a look at new zealand also opening lower at the japan i want to take a look at this nikkei energy is the biggest loser in that index. The yen. South korea kospi is showing a little bit of strength. Medical stocks are leading the gains in the costly. It is interesting to see some of the gap is at the highest level since the beginning of 2016. Positivity after a week gdp and investors are longing yen inflation data coming out create yesterday. Economists are also forecasting against the dollar using global recession is still nondeliverable forwards and shorting the currency with looming. They are forecasting slower deliverable forwards at the spot rate according to traders that growth in chinas gdp going to are spoken to bloomberg news. Come in below that 6 . Would it means is they are that is the forecast. Making a profit when the pboc also saw week pmi data across asia and around the world. Keeps setting that fixing stronger. That is despite the following as we see this global many fetching slowdown. I want to switch boards and take yen in the spot market. A look at japanese yields. As you see the spread widen, they are getting very close to a would low of. 3 that traders are happily profiting off that. The tactic is clearly working well. It is in fact set to widen even push into a record low. Further. Economists have noted that the paul thanks very much. Boj is likely to continue to ramp up easing that cannot risk President Trumps warning china to watch the yen strength and while the fed and ecb are that trade talks will take a new acting. But the central bank has been after 2020 elections. Reluctant to take further action out of growing concern that this yield curve control program is he tweeted he would be much tougher should he win a second term. Squeezing costs at its that comes as data shows more commercial banks and distorting evidence of weakness in the u. S. The market. Switching boards one more time, economy. Taking a look at stocks im plans for new talks this month remain unfulfilled. Watching. Csr down more than 6 , it was lets start with those talks that were meant to be happening downgraded to underweight at this month. J. P. Morgan. It has fallen to a level the we still have no schedule, no most in a month, Trading Volume venue, no agenda, no nothing. Are they going to happen . Is also up more than seven times the average for. Absolutely. We have 2020 elections over a also looking at meyer holding, year from now. Up more than 7 after your being in the meantime, the two sides upgraded at j. P. Morgan. That stock is up more than 30 canonhe date for talks that were supposed to since the start of the year. Happen in september. Rio tinto on the board there were just raised to outperform seems far off from any app. Huawei accusing type of deal. To talk about a deal seems look a distant prospect. We just had this escalation of washington of an intimidation tariffs. The signs are not even at the campaign. Table again. They are not speaking at the in singapore,or highest levels. Shery we are now seeing huawei lash out at the u. S. Government, saying it is harassing its is huawei backing these claims . Workers. . Hat is its reasoning that is a good question at this point it was a strange announcement by huawei. We have forgotten about it began as a statement about an ve become a player in the trade war given ip dispute between the company that the u. S. Put them on this blacklist. And 70 who was accused who trump said he would go easier on has accused them of stealing ip them, allow u. S. Suppliers to start their sales. For a panoramic camera. Then it segued into an offensive those applications have not been attack on the United States and approved. Tensions between Major Chinese is saying the United States government is threatening its Telecommunications Company in the u. S. , they are actually at a employees, coursing them, even sending fbi agents to their higher state right now. Home that u. S. Agents are also trying to hack into its system. The company did not provide the point huawei is trying to make is that it is specific evidence about any of these allegations. Acrosstheboard, the intimidation they are feeling it has nine bullet vincent laid right now, the backlash they are getting, being demonized by the out in this release and clearly is assigned the company is now going on the offense against the administration, they would say there is not u. S. Government u. S. Government of course has accused while way of being a Security Threat. In many reports. Has providedtion has pushed for the company to be kept out of not just medications networks in the u. S. , but also that in many reports. Globally as well. Not just medication networks paul lets analyze this a the u. S. Possibly. Little bit further. Deborah elms is the founder and and cutting the coming off from executive director of the Asian Trade Center which works with supplies to make smartphones and network equipment. Paul is there anything governments and companies on better policies for the region. Significant about the timing now . Is interesting. Describing, wes ill wait as a company that for do not have a schedule. Many years effectively do not we do not have an agenda. Is this what stalemate looks comedic it with the press. It was selling to carriers and corporations did not like . Communicate with the process. So. Robably it was selling to carriers and corporations. The challenge is there is some this year we have seen a change where they have come out from interest on the part of both that criticism it the u. S. And sides to at least maintain the fiction or the appearance that been much more aggressive. Talks are Going Forward so that this is a sign of this increased you avoid further deterioration of this discussion. Aggressiveness from huawei with air try to go on the offense. I dont think either side really remember they filed the u. S. Knows what they would be a lawsuit in American Court discussing if they did sit down and engage in a conversation. Trying to dispute some of the this is the tricky part. Claims that was present it a you want to have talks. Security threat. If you sat down and had talks, off fromwas cut what you talk about . Supplying Government Agencies in the u. S. Were going to see more where that is the challenge. Paul we have heard some they tried to take the fight to the u. S. The u. S. Claims the company interesting rhetoric as well. Represents a Security Threat and President Trump tweeting that should not be allowed to buy crackle components. After the 2020 election, things peter, thanks. Are going to get tougher. Then we have xi jinping telling chinaile embattled u. S. Party cadres, forget about 2020, electric vehicles start up ferriday future has named bmw forget about 2024. This could lead up to 2049. Veteran Carsten Breitfeld as ceo. Is there evidence china might be digging in for a very long war of attrition . Breitfeld parties, again, this is spoke x, salida bloomberg at the the challenge, both sides first companys los angeles headquarters. The head count to hundred of all think they have the upper hand. Both sides think they should win the ceoe and we will and will win. When you have two sides that spoke exclusively to bloomberg believe they have most of the at the companys headquarters. We will have to go to the cards or more cards to play and neither side is prepared to Capital Market to have to show what we have. Compromise were to really engage during the last two years if you heard about ferriday it was in the kind of discussions you mainly about the challenges. At least i heard it from would have to have to bring a resolution to some kind of outside. Conflict, that is, again, the but if you come here and i think you have the chance to see it reason why i think we dont have today, there so must substance any talks scheduled or any kind here that comes to technology, of deal that might potentially be on the table because neither to the product and to the business model. And this we have to communicate side is yet at the point where they are willing to say, you we have to make people know what, i am willing to give understand that this is the most advanced start up company of all on something in order to achieve those new companies. Some kind of mutually you noted the issue of satisfactory outcome. Shery u. S. Factory and data fundraising. What is the situation. How wellcapitalized is faraday, showing a contraction for the first time in three years. We have new tariffs on chinese and whats do you need goods. Who will be the biggest losers . We you get them . That is a good question. You have to understand what is u. S. Consumers in particular. Going on now in the Capital Market. If you look back you know i built a unique Company Three years before. U. S. Companies, but also u. S. And we will talk about that, consumers. This latest batch of tariffs are course. Three years before an specifically on products u. S. Consumers by. Accelerated. If you had a powerpoint especially the lower end presentation at a big vision, products i dont want to say you could get a couple hundreds lower end, but profits of millions even billions this products that have lower profit change now because the hall and margins. Minister in investment it is harder for companies to committee understood this business is much more difficult than they thought. Disguise those tariffs or absorb those tariffs when the profit ,t is a lot of money to invest margins are already thin on many consumer facing products. Kind of heavy investment. It takes time to establish it. Theyre going to have to get and it takes time to return. Passed along to consumers. The estimates range from 400 to so theres a consolidation going on now. 1000 per consumer in tariff at the end of the day, everyone costs alone. Is convinced today that the unlike whatoes not, and itwill be electric trump thinks, while on the chinese. Is about digital ecosystems. It falls directly on u. S. Now it is about who will be the consumers. Shery President Trump upping one who is making the rates. The rhetoric, tweeting that for all the geniuses out there, that and faraday is in the best want him to get together with the eu and others to go after position when it comes to the china trade practices, remember product and the technology and treatd all trade is the vision for the business model. This is what we have to state. Im confident we can be successful, because if he really us very unfairly on trade. Can the u. S. Fight and win a comedic a this and make them understand where this company is trade war against china without its allies . Now, they will understand that this is the number one to invest i think it is very difficult. In. What you have is a very good one of the things that is slightly concerning about that almost finished preproduction car. Tweet is remember hanging over all of this are the threats of the california plant is still for theal tariffs being built. How much cash do you think you need at this early stage to get production . In the first stage it will japanese on autos. That has not gone away and the deadline is getting close. The u. S. Continuing to ramp up a be, i do not want to mention a concrete number here, a3 didnt fight against china, but has the Million Dollar amount still potential to impose new tariffs missing to make all of this happen i would say. Thehe next step, to scale against the europeans especially on autos, but also the japanese on autos. Volume and bring the next products to market, the amount one of the reasons we have not is bigger. Close the u. S. Japan negotiation 100 or 200 or billion, is because the u. S. Is not willing at the moment to lockdown a commitment to not is not so much of interest from my understanding. The most part in thing is to get impose tariffs on autos for japan. The trust of Capital Markets and forgotten in all of this investors. If they really understand that this company has a great future. And if we can make this point, was the demand about a week ago then we can progress. That seems like a year ago from President Trump that u. S. This is where i see a bit of my value coming in here. Companies should start pulling out of china. Have you seen any evidence that this company has a great vision. Is being taken seriously . Think companies in china as great products. And what it missing now is its execution. That are american are facing a bring the product to the market really difficult challenge. As fast as possible. This is where im coming from. First, they are facing tariffs back into the United States. They are also facing a challenge in that being Chinese Market is a huge and lucrative market. He is also coming from there. More than one billion chinese. He is coming from digital ecosystems. Im coming from a car you also use it as a production base. Industries. I think this, nations perfect to make it happen. Shery Faraday Future if you are an american company, you cannot afford to leave china Carsten Breitfeld ceoCarsten Breitfeld. That is where manufacturing is. Talking with bloombergs ed ludlow. President trumps latest but it is increasingly difficult or could easily be increasingly warning to china and the difficult for you to operate in surprise decline in market manufacturing. China, especially if we get we will see if there any bright spots. This is bloomberg. Backlash against u. S. Based companies in china by chinese consumers, by Chinese Government officials to start cracking down on u. S. Companies. The context is very challenging for u. S. Companies based in china right now. They are getting really hammered on all sides and it is hard for them to operate. ,hery when it comes to huawei a little bit forgotten recently giving given the other trade headlines. We are now hearing from huawei that the u. S. Government is harassing its workers, or at the u. S. Government. When it comes to the Trump Administration and these restrictions, blacklisting huawei, what is the endgame for the u. S. . Stopping the rise of the Chinese Tech Company for stopping the rise of china itself . With these restrictions achieve whatever goal it is washington has here . It is unclear what the final endgame is. There may have been one endgame. It has shifted over time. One of the things i find sterling for trade is that trade and security have really become wrapped up in a way we have not recall in myt lifetime it has happened this way. Particularly with partners that used to be so closely interlinked. Lots of Different Things are happening. Huawei is the sort of pointy end of that spear where trade and security have gotten together and trying to unravel that is difficult. It is not just huawei. Theres a lot of other things attached to that. How you solve this is unclear. Thats part of why we cannot seem to get a resolution and why things continue to escalate. More things keep getting added to the bucket. It is not just huawei. It is fentanyl, it is hong kong. The list is growing of obstacles between the u. S. , the chinese. The list just keeps growing and growing and growing. Sorting this out between two parties that do not want to sit down at the table with each other is going to be i think that is why xi jinping said paul this is daybreak asia. Lets look at 2049. I am paul allen in sydney. Maybe by then something will happen. Paul maybe the current players shery i am shery ahn in new york. Will be either dead or in the old folks home. We saw surprise decline in deborah elms, executive director American Manufacturing with factory data signaling of the Asian Trade Center, thank you for joining us. Still to come, we speak to eu contraction for the fourth time in three years. Trade commissioners live from the annual meetings in brussels. We will speak with vandana hari thoughts on a range of issues,. For how long can we expect especially the slowdown in europe and the trade war impasse the trade war to keep a lid on prices . As long as china and the u. S. Dont miss that exclusive interview on bloomberg tv. Dont forget, our function tv do not get back to the negotiating table, and not just. That, but make some substantial you can watch live and catch up on past interviews. Tangible headway in resolving their trade conflict, i do not you can also become part of the see the downward pressure on oil conversation by sending instant messages during our shows. Alleviating. Having said that, and this is for bloomberg subscribers only. Check it out at tv. Interintroduction you are asking are there any bright spots in commodities . Something to keep an eye on is that while there is an increasingly gloom and doom scenario, it is entirely President Trump changes tack again. We have seen enough of these about turns so far this year. And the two do get back to the table. If that happens at this point because we have reached such lows in terms of expectations, market x dictations, we could see a bounceback and prices. Market expectations. Shery sure, a president ial tweak me all that it takes. What about the supply side since we have seen opec trade on opec sort essay on the sidelines. To my mind it is entirely understandable. Opec stay on the sidelines. Its wise for opec not to try to recalibrate their supply given the uncertainty in the past few months about what is going to happen to demand. Lets not forget that we have weaker mac reckoned my data and downward revisions and oil demand growth, nobody really knows how exactly it will translate, in terms of the physical demand for physical oil. So they have been wise so far. , thethink that it is supply story is starting to come back centerstage. The last few days. Including bloomberg prominently we have seen surveys showing that opec production rose for the first time month on month. In august. Extent that is to some become a double whammy for the market. The last thing a double the last thing the Oil Market Needs now is another is uncertainty over demand, the last thing the market needs is more supply from opec. Than in terms of supply and to your point about opec supply, lets have a bit of broader context with this chart you can find on the bloomberg terminal. If you look at the white line on the bottom, that tiny edge up on the white bar, that is the added shery xi jinping is telling the communist party to brace for opec supply you mentioned. Longterm struggle against a growing variety of threats. But the blue lines at the top, the latest in a series of that is what the u. S. Has been warnings amid a slowing economy piling into the market. And a more confrontational u. S. To what extent is the u. S. Tom mackenzie join us from distorting supply here . Again, i probably have a beijing. What is xi jinping saying here . Xiwe heard from president slightly different view on it. Calling on the Chinese People earlier this year to prepare for another long arch. Especially if you look at what the u. S. Eia has been protecting this builds on that comment we heard. Projecting in terms of oil he addressed cadres from the communist party and said prepare growth. Even the eia figures showed production will grow year on year, but not as strongly in for a long, drawnout fight. 2019 as it did in 2018. He named a couple of key where i differ probably is in challenges, including economic terms of the quantum of growth. Risks, security concerns, and hong kong and taiwan. This year. And certainly in 2020. President xi said these issues where the eia is still showing may not be resolved until 2049. Another three decades from now. Growth reasonably strong growth in u. S. Production. I think the growth rates will 2049 is what the communist party is looking to. Remain, theres a fair amount of that is when they are going to be celebrating, they hope, their from momentum still from the investment made through last 100th anniversary. This is the message from chinese year especially as oil prices president. Chinas were well supported. This year we are seeing a stark moneyal in terms of the longuld be a generations that the share producers are fight as the u. S. Continues pressure on the trade front, as spending. Drilling rig count has been going now. Well as the security front, at this shale producers are spending. Whether that is taiwan or huawei drilling rig count has been going down. And trying to restrict as the total level seen at the Technology Advances china is beginning of last year now. Making. The frack fleet count which the slowdown in china leading economists to revise corresponds to have any wells are being brought into production has also been going down their growth forecast. Down. Pipelines coming what are the expectations . Up in the permian what you china has set itself a target would expected you in terms of gdp growth between six and 6. 5 . Have to expected support more investment. We know Oil Producers in the it looks like we are going to be u. S. Will always be sensitive to towards the bottom end of that the price. Yet u. S. Proximal range by the end of the year. You have the likes of Oxford Economics saying by q3 of 2019, grow but i think the rates will be less than so far what has been predicted especially for 2020. Youre going to be looking at going to thats yes, u. S. Production will grow but i think less than what continue until 2020. Has been projected for 2020. 2. 57 for 2020. Paul would appear hurricane growth could slow to 5. 5 by dorian is missing the gulf of next year. Exico that is significant because president xi has set himself a challenge of by next year and the oil market you will doubling gdp growth from 2010 not see mentions of dorian. Levels to create what they described as a moderately it is missing the oil and gas prosperous country. Gulf ofg areas me to get to that point, you need to notch up 6 at least in 2019 mexico. It is a huge area more than one and 6 in 2020. Million barrels a day produced according to economists, that is there. Shuttingrricane very not going to happen. You have bank of America Merrill lynch saying policymakers here down had given a lift to pricing. Dorian is not threatening either are behind the curve when it oil and gas proxy nor the comes to the stimulus needed to refineries in the u. S. Gulf area. Address the slowdown. The market will probably keep an eye though on demand. They say more needs to be done. There is debate as to whether or usually when you have heavy rainfall and flooding, the not that involves Lower Driving echoes down a lot benchmark rates or cuts to rrr. Driving goes down a little bit. Those debates continue. And commerce is subdued. Well probably see a dip in some economists expect another rrr cut. Demand depending on how broadly others discussing another benchmark rate cut. The focus is on what policy and how long the effect lasts in the states that during will hit. Steps are initiated from here. China correspondent tom right vanda insights mackenzie in beijing. Things for joining us. Vandana hari next, bloombergs exclusive. Still more to come on daybreak interview with the new ceo about asia. Stay with us. Why business must go beyond this is bloomberg. Selling cars. This is bloomberg. Paul this is daybreak asia. I am paul allen in sydney. Shery i am shery ahn in new york. Lets get you a check of the latest business headlines. There is twoway mid support reconciliation between renault and nissan. The partner was destabilized following a pretzels arrest. Both parties have been arguing for greater sway in the relationship with renault wanting nissan support for a merger with fiat. And yes im calling for more equal voting rights. The founder of a fastened chain says he would prefer his shery ferriday future, the successor to be a woman. He says the role is better embattled startup on the brink suited to a female executive of insolvency has made carsten because women are persevering, Pay Attention to detail and have breitfeld its new ceo. A better sense of aesthetics. Frequently0 and is he has spoken to bloomberg about why he is seeking to go beyond asked about his plans. From hisniqlo simply selling luxury evs. It is not about selling cars. It is not about selling electric fathers tailor shop into a cars. Global brand. Do 6 . D companies u. S. Brand is set to open overseas. The real business will be shared they expect business to thrive mobility, become a provider of in the city when it opens the doors in november. The manages of red lobster in mobility and selling a digital ecosystem. China and ceo says brands often do well when things become a bit those Companies Might be able to turbulence. Are more than three sell electric cars, but show me one who has an interest in an month a protest in hong kong are ecosystem. Putting increasing pressure on this is the key differentiation. The cities tourism industry. Bloomberg Intelligence Analyst patrick wong has been looking at this. People here, some of them are patrick, how severely are the standing around, and this is protests hitting the Hotel Business . I think interestingly we see what makes faraday special. The protests last for three why do you thing so many are months already, overall we see designing in california and producing in china . What is the attraction . In principle, if there was the Hotel Occupancy rates coming not any trade friction, it is a down aggressively in august we very interesting approach. See 50 or 60 occupancy compared with last year 90 . So far some hotels here in the but the world is, as you know, past recurring income for them. Not as easy any longer. About 1. 5 billion or 2 are you worried about trade tensions . Billion of operating income from hotels every year. You have to live with it. Now it could be a huge decline it is reality. On that. There is always the expectation especially with occupancy rates lower. There will be in the future it is a bit extreme right now, so it is tougher them. Shery patrick come at your but im not worried much. Is theroach of faraday point, retailers have been hit hard. How about are things looking company is based in california. Now . Theyre going to produce a how bad are things looking highlevel product. Now . For retailers it is also challenging. We are implement in technology overall, visitors coming to hong and production in china as well. Kong in the past four spending, i think this can balance whatever happens in the trade for retail, for shopping. Relationships. Your youan you achieve would see ae decline. In july doubledigit down. Could not achieve elsewhere . In august it be down 30 . Challenge. R focusing on the tour districts like the wharf and harbor city. 50 of sales for visitors. That will see a decline. For that they rely on the turnover and rent from retail sales from retailers. 60 or 70 of rental income when drop this year. Shery how are residential sales exciting cars for drivers. The i8, principally. Other programs as well, but this was the most exciting one. I built a company, bringing Digital Technology into the car. In hong kong looking now . It is still very much about residential is also quite selling cars. Maybe we did not jump high ,nough to really cover mobility but this has always been my dream. My first step in my last set now challenging. Step now is to run a company that can make this transformation of mobility. They for chinese theyre coming to buy to hong this is not only electric cars. Kong. In the past luxury apartments. It is not only digital ecosystem. It is about mobility. Now it is not the case any bring this all together to longer. Become a disruptor. That is a challenge for the this is what im going to do lecture market. Here. Speakingsten breitfeld interestingly,. Shery thank you, so much. Exclusively to bloomberg in l. A. Lets get a quick check of the lets turn to selena for what to watch and markets. Latest business flash headlines. Selina as we just heard from Level Electric car sales need a patrick, month of unrest in hong Battery Charge after falling for kong are taking a toll on the retail market. The First Time Ever in july as im taking a look at a cosmetic china scaled back subsidies. Retailer in hong kong. Shares are down 40 since the start of the year. Monthly sales fell 14 to 128,000 according to a report and sure effects against the company are the highest level in from bernstein. China wasl grew five years. Make it one of the most shorted stocks in hong kong. Analysts see it as a proxy of the biggest producer and Customer Base for evs. Hong kongs retail market. The government scale back that about wraps up daybreak asia. Up next we have a lot more on funding support to push carmakers to innovate. China market open. Fory Government Support reconciliation between nissan and renault. Economy ministers of the pan and france held talks on boosting the partnership, which was destabilized following the arrest of carlos ghosn. Both companies have been arguing for greater sway in the relationship, with renault wanting nissans support for a merger with fiat and nissan calling for more equal voting rights. Selena for what to watch. Stocks are set for a cautious, mixed open. The nikkei and sydney futures showing a lower open. Markets are watching for the twists and turns of the trade war. I want to take a look at australia gdp, which has had 28 years of uninterrupted growth. We are expecting gdp numbers in just a few hours. Anything below 1. 4 would be the slowest pace of growth in 20 years. Welcome to Bloomberg Markets china open. We are counting down to the open of trade in hong kong and mainland markets. Looms asit election Boris Johnson loses control of the parliamentary process. He says it has the initiative to paul good morning. Brussels. I am paul allen in sydney. Asias major xi jinping warns china to brace for a long struggle. President trump says any trade deal will be tougher if he wins a second term. Australia in the spotlight. Gdp figures could show the economy heading for a first recession in three decades