Investor demand is several times oversubscribed. Sometimes people look at australias market which has just opened what are you watching . Slightly under pressure after the game we saw on tuesday. Kiwi shares are gaining. The could see a softer open in seoul and tokyo. The nikkei stock average has more than doubled since shinzo abe took office. Economic strategy still lacks traction. It is a busy week that session ahead with japanese trade and chinas update on the docket this wednesday. As we are waiting on alibabas final pricing on an ipo. Here in hong kong as schools reopen and we await more protests, housing futures have snapped a today advance. Volatility has slumped over the past two sessions. Acrosse sliding further there is optimism we might see a peaceful resolution to the protests here in the city. Lets check in on first word news. Boris johnson and jeremy overn repeatedly clashed policy in their first televised election debate. Johnson said he would massively raise Government Spending. Jeremy corbyn said the Health Service would only be safer under a labour party administration. Pg e has lowered its estimate of the number of households that might need to suffer imposed Power Outages on wednesday. Much of the San Francisco area may be spared. Pg e is trying to avoid the power lines from sparking new wildfires amid hot and windy weather conditions. The u. S. Has walked out of military talks with south korea. The Foreign Ministry says it is expected to discuss costs that were in the acceptable range for both sides. That thees questions stability of one of americas closest alliances. On twitter at tictoc powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. A the u. S. Senate has passed bill aimed at supporting hong kong protest. This is an amendment of the u. S. Hong kong policy act of 1992. You can see Chuck Schumer on the screen. He is continuing to speak. Americaslar of economic relationship with china and hong kong. The u. S. Treats hong kong differently than china for trade purposes. Now, there will be a review of chinas relationship with hong kong every year. The senate has just passed this, something the president has not said he would approve yet. Lets bring in our congress reporter. Also our reporter in hong kong. Does this mean for the u. S. Relationship with hong kong and does President Trump have to approve it . Yes the president definitely has to sign this into law for it to go into affect. We are still one or two steps removed from that. The house passed a version of this bill about a month ago. The senate did not take up the version but instead passed its own version of the law. What has to happen now is the house and Senate Foreign policy committees will have to come together and work out a compromise that could that be posed by passed by both chambers then go to President Trump for his signature on this. President trump has not said one way or another whether he supports this piece of legislation. He is not said that he does not. Rubio has had conversations with the president on this. Indication that this may have some support from the administration but we dont know for sure what will happen moving forward. You have covered the politics of washington, d. C. How you expect the passage of this bill to reverberate . It was very much supported by the prodemocracy activists here. Washington went to to testify in support of the bill. This will be very welcome from that camp. They haved that warned the u. S. Against interfering in the issues and hong kong and have warned of countermeasures if this bill was to be passed into law. Comes amid the discussions of the trade war and trying to get to the phase one agreement. This could be a Significant Development in terms of china u. S. Relations. China has previously complained against foreign interference pointing to the u. S. As what it calls the black hand. Does the passage of this bill validate that claim . Certainly, china is expected to see it that way. This is something that they have been warning against from the start of the protest. They have warned the u. S. Against interfering. They have said that the u. S. Should not be a player in the affairs of hong kong and at every turn of this bill passed through the u. S. Congress have warned against the passage. And just passed the senate it still has a few more twists and turns before it gets to President Trump. We have not really hard whether hes like to sign it or not. I expect we will hear from china in the next day or so. Againl see if they are threatening countermeasures. Trump has president been quiet when it comes to the passage of this bill. How do you expect him to respond to this and does it make the picture around the ongoing trade negotiations, does it add a new dimension there . We have spoken to several experts about this issue who feel that they could at the very least complicate negotiating the first phase of the trade deal. That may be one of the reasons why President Trump has been reluctant to weigh in on this explicitly. Has aecutive branch different calculation when it comes to for policy the congress does. Sometimes, congress can play the bad cop when the white house is forced to play the good cop in certain situations. Is thing to note on this that it has been passed by unanimous consent in the house and senate. Thats not the same thing as a does zero vote but it indicate there is strong bipartisan support in both chambers. We dont know if they be tell what happened but if it were, a cup of President Trump in an awkward position pushing back against congress on something that a lot of people here on the hill view as an inch issue of fundamental human rights. This will get more complicated over the coming weeks and again, there is still some parliamentary maneuvering that will have to happen in order to get this to President Trump. I think it has a good glide path right now given the support in the house and senate. Thank you to our guests. Bloomberg sources say the near deal between the u. S. And china fell apart six months ago is now being used as the benchmark to decide how much tariffs should be rolled back as part of a phase one trade agreement. Our china correspondent joins us from beijing. What if we heard and does this development change things . As the previous correspondence were saying, it makes the situation more complicated. We will have to wait and see how this will end up going through the house and senate once the Foreign Affairs committee looks at it and then if President Trump signs off on it. This is an issue the china takes seriously and is very frustrated about. It has warned of strong countermeasures if this bill does get implemented. It is something that adds another barrier potentially in terms of the relations between the two sides. Talks, the trade fresh deal that we have had is in terms of the insight for the trade negotiations between the u. S. And china which is they are looking back at the initial deal that they had back in may which fell apart. Iny have revived that deal regards to how much china implements it. That will be tied to how much of a tariff rollback the u. S. Is prepared to implement. What we know from the chinese side is that if they are prepared to sign off on the the tariffs from september would be rolled that completely. They also want the threat of additional tariffs in december to be taken off the table. ,n regards to the 2018 tariffs china wants to see theback as well. What where hearing is that now some officials in the u. S. Are prepared to look at that. They wanted to keep the 250 billion worth of tariffs and play. Now we are hearing there is a debate within the white house about potentially rolling back those tariffs. Again, the exact amount is still being debated in the white house. Were still waiting to find out if the two president s can sign off on this before the end of the year. The u. S. Senate has passed of this bill aimed at supporting the hong kong protests. They passed it over chinas objections. My question is, some would say that the Hong Kong Police have fought back against the protesters some say they have been accepted in force but china seems to be holding back and has shown restraint. What do you think this is going to mean with their relationship with the u. S. . How is President Trump looking at this . Chinese side, interfering in their Domestic Affairs is something that is incredibly sensitive for them. There are redline issues around this. There are a few issues more important to the regime here in beijing. It is very sensitive. In terms of how they are responding to the protest in hong kong, the view has been that they have been holding back and letting the authorities and hong kong, the police and carrie lam, pleasant deal with it. They have been trying to wait this out. There is a view from chinas Senior Leadership that if they were to take a more aggressive sending inr example the help of the Hong Kong Police, that would cause such a major issue in terms of capital flight and business sentiment. It would cripple the city beyond what we have seen. The trade talks are part of the deliberations. China very much wants to get a phase one deal done so they can alleviate the pressure on the economy. All of this factors are being considered by officials in beijing. How donald handles this, we have noted he has been silent on this bill. Whether or not he comes out and comments on it on the back of the Senate Passing it is something to be seen. We may get a response from chinese officials later today. Thank you so much for that. To finds go to sophie out if there is any reaction to this hong kong bill passage and if so where . The bill still has some hurdles to go. We are seeing the offshore yuan suffering. The yen has traded against its. Ajor peers we are seeing u. S. Futures come under pressure. Still ahead, witnesses described trumps ukraine call is unusual and an appropriate as a second week of impeachment hearings begin. We will have the latest. Next our guest says how he sees the rally leading up to the 2020 elections. This is daybreak asia. Are digesting trade headlines. Our next guest says stocks will grip higher into the 2020 elections. Its great to have you. Higher. 2020 elections we are still in 2019. We think we have done enough. They may get some not so good retail indications. How does this set the markets up for a year when they are going to rip higher ultimately . You think the fed is going to cut rates . All of those things you just mentioned are economic fasters. Factors. Why we see the markets moving upward towards the next sidential elections is the happen before then . The economy have to stay on track . Does the trade deal have to get side . The trade war. There is no deal at all, you seen what is happening to china for slowdown there. This is not been good for u. S. Manufacturers. The issue with that is the trump will stop the trade war. Its the best thing hes done from the political standpoint. From an markets point of view, if you expect the momentum to keep moving forward, there is only one way we get from here to there which is an effect qe for. In australia, we are talking about printing money. We already going down the same path. Your views contrast with a guest we had previously. He believes that we are getting near the end of this bull run that after 10 years, we are do a correction. How would you counter the argument . The premise behind those points is that there is the issue we are saying at the moment is hyper convergence between fixed income. We sought earlier this year. Everyone was saying there was going to be a recession which is an economic phenomenon. Happening after the inverted yield curve in the u. S. It didnt happen and we rallied on the u. S. Markets. In australia, we have had 11 inverted yield curves in the last nine years and that hasnt been covered. Principles that worked previously, call it what , if you understand what understand whating, the should be happening, the premise of your last guest point was there is still a business cycle. As a theory invented in 1967 where we still have Business Cycles and the relationship between that and a natural markets is yet to be seen. Sameu could argue with the qe for here in america what the ecb and bank of japan are currently doing will be very different to what our reserve Bank Australia could or should be doing. Our yield curve and our relationship with fixed income markets is fundamentally different than any other market in the world. The propertywith market as we know in australia. It should not be forgotten that australia is the only advanced aonomy in history to avoid recession for 28 years. Theres nothing natural about that. Premise, and for a lot of people who are not going to vote for President Trump, they like the idea that if he does when had i make money . Where are you going to put years . Asked not of this is good. Not a healthy scenario we want. What happens in reality, we want are always the same thing. Moment, if you do believe this a disconnect between the two, number of us can guess when that is a cycle in the financial markets. Mentioned,y as you the gets a second turn and he is talking about amending the 22nd amendment going through a third term. Whats important at the moment is to see whats happening but theres also some very boring nonmarket correlating opportunities. This whole geopolitical overtones at the moment for example, were seeing the change in silicon. Silicon carbide is a new fundamental science that is changing microprocessors. Affected by the trade war, the relationship with korea, taiwan and china as well. Thank you so much for joining us. That was the cio a quick programming know, we are going to be live at the new Economy Forum from beijing on thursday with a number of big names. Dont miss those big interviews and many others besides. If this is bloomberg. Lets get a quick check of the business flash headlines. The regulator is thats according to indicate news report. The Financial System council will suggest reducing the index to only largecap stocks. Australias Financial Crimes Agency is accusing a bank of reaching antimoneylaundering. The agency says the bank failed to report almost 20 Million InternationalFund Transfer instructions over a fiveyear time. Duefailed to do enough diligence on some transactions. Still to come, new details are revealed about Due Diligence on some transactions. We will bring you the latest next. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year. And now get 250 off google pixel 4 during Xfinity Mobile beyond black friday. Thats simple. Easy. Awesome. Click, call or visit a store today. This is bloomberg daybreak asia. Unanimouslyate has passed a bill aimed at supporting protesters and hong kong. His warning china against violent suppression as a demonstration. It would require annual reviews of hong kongs special status. The health passed the bill last month but slight changes mean the house still needs to pass the same version before sending it to the president. Mike pence said it would be difficult for the u. S. To sign a trade agreement with china if demonstrations in hong kong are met with violence. This is washington is taking a strong stand with china while negotiating a deal. Kong plan to hong block transportation. Bloomberg has been told that the u. S. China trade deal that fell apart six months ago is now being used as the benchmark to decide how much tariffs should be rolled back. Negotiators are under pressure to pass a phase one deal. The u. S. On it has misidentified the location of dozens of nuclear weapons. The audit failed to name the correct location of 79 rockets react about 1 5 of the stockpile. Global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Australian markets have been trading for 30 minutes now. Has a snapshot of aussie shares. When it comes to stock movers of know, westjet is leading after its guidance update. Als is rising the highest level on its solid firsthalf report card. 5. 6 ocrat leisure rising this morning after boosting its final dividend on it stronger profit growth. Lets look at the downside. On highlight westpac shares earlier. We sought off by more than 2 . For 23k is being sued million and antilaundering rules. Want to highlight whats going on with the reaction to the news that the the u. S. Senate has the bill about hong kong. We saw a reaction in the offshore yuan. We also have the yen trading. The bill about hong kong. It has been a reaction in u. S. Futures as well. The s p eminis off this morning. Moving onto alibabas hong kong share sale. According to the latest dow es report, according to our sources, alibaba is telling investors that it is likely to price the institutional portion of the sale at around 176 hong kong dollars per share. Thats a discount from the last close of trading in new york. Taking orders from institutional investors. Earlier, there were reports that strong investor demand. We know the taiwanese lets ensure is planning to buy as much as 500 million for the shares in this ipo. Itording to these numbers, looks like alibaba is going to raise at least 11 billion in this share sale which makes it one of the biggest ipos globally of the year. Its a big deal for the Hong Kong Stock Exchange and a big vote of confidence for hong kong that it is still a Global Financial center amid the ongoing social unrest. It also show