After we had support for the u. S. From the u. S. Congress for hong kong protesters. Potential for confrontation. Chinese officials waiting a trade deal. We got a glimmer, the vice premier was talking about being phaseent about signing a one trade deal with the u. S. Flummoxed by was the negotiating tactics of the other side. Hang seng 1. 5 down. The shanghai composite is also recovering. Ms asiapacific having its worst day in three months. Mitigated by the news coming from the vice premier. A quick look at whats happening elsewhere. Taking a look at how the needle has moved, 1. 73. More scope for Interest Rate cuts in australia, sending the 10 year yield down. Soybean futures, exports for grains in the u. S. Really sagging. We have seen a decline. That has been felt by whats going on with soybean and corn futures. They have been declining out of the last four sessions. Nickel. 9 down. This is a demand story. As we have a slowing global economy, much less of this will be required. It had been one of the star performers. Territoryy now in bad after climbing 20 since the early part of september. Thats what we have going on. 43 minutes away from the start of the session in india. Onmanaged to get a gain wednesday. About half of 1 . Nonetheless, the nifty futures are indicating we may see weakness. That would be following the regional trend. They are moving to a more flat position. Rupee, very little move for the indian currency. 10 year yield lurching low by a couple of basis points. 6. 46 yield on that. Moving along, lets get to new york and the first word news with su keenan. Andwe will start with china the trade issue. Chinas chief negotiator cautiously optimistic about reaching an initial trade deal with the u. S. He made the comment in his speech in beijing on wednesday night because of people present. He also told an attendee he is confused about the u. S. Demands, that his confidence of an agreement can be completed nonetheless. His comments came before the u. S. House passed the bill that supports hong kong protesters, which the president is reportedly likely to sign. The chinese Vice President has told the Bloomberg NewEconomy Forum in beijing that critics have abandoned what he terms a cold war mentality. Making the keynote speech, he did not directly address the trade or criticize u. S. Action on the protests in hong kong. He rejected criticism of china for the fault of others. Pursue common, comprehensive, cooperative, and sustainable security, and reject zerosum game and the cold war mentality. Su there are signs of recovery in singapore, where the economy expanded at its fastest pace. The final gdp readings showed annualized growth of two point 1 from the previous three months. That is far better than an earlier projection of 0. 6 percent. The Monetary Authority says policy is appropriate at the current time, but it may change as the economy evolves. South korean exports poised for a 12th monthly decline as tech demand struggles and china continues to slow. Shipments approach almost 10 from a year ago. China, south koreas biggest trading partner, dropped more than 8 . Micronet sales account for the largest share of exports. Global news, 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan, this is bluebird. This is bloomberg. Shery we are live at the Bloomberg NewEconomy Forum in beijing, where leaders from the business and finance world are gathering to discuss key challenges. Thenext guest runs philippines largest conglomerate. Zobel de ayala ii, good to have you. So much to discuss. Trade tensions on one hand, unrest in hong kong. Is all of this sentiment being dampened around the world . Is it having any impact on your business . It is making everyone former conscious about areas of inclusivity. Inclusivity, social tensions, these are issues we have to take into account in our businesses. They are sensitive issues. These explosions happening all over the world are happening for a reason. Continue toyou grow. Despite the challenges globally. You have just expanded in the region. You acquired a stake in miramar. What is next . Myanmar is ther consumer demand taking place is phenomenal. He philippines has grown we feel as a group, we want to tap into this spring happening in Southeast Asia. Myanmar is the first step. We have operations in thailand and indonesia with subsidiaries. We are already moving. Vietnam, as well. Were excited about Southeast Asia, the markets, and theres an affinity in the region. We would like to continue overweighting our investments. Shery how are these countries being affected by this shift in supply chain away from china . We continue to see tensions with the u. S. The ships are taking place. Over the last five or six years, everyone has had a china plus one policy in manufacturing. The philippines has been a net beneficiary. We have clients in the philippines. We have seen an influx of manufacturing, people moving out just to balance out the equation. Vietnam is a beneficiary, thailand, i think everyone has seen they need a china plus one model. Southeast asia is a perfect venue for some of these manufacturing groups. Shery does that mean you will be moving into some of those countries benefiting the most . In the philippines, our plants are full. We have been overweight in the electronic manufacturing site. Who knows where others can develop. We expanded our Real Estate Operations in indonesia, malaysia, and we have operations in vietnam. It depends where the Business Opportunities lie. On the manufacturing side, Southeast Asia will be the beneficiary of whats happening between the u. S. And china. Shery how much will southeast china benefit . Its the first time there has been a communal overarching framework for people to abide by. I think it will be very beneficial. It ties people into a broader economic sphere. We will all be net beneficiaries. The philippines has been a signatory. I think we are moving towards succeeding and bringing the economies of Southeast Asia into a broad framework. It is a good thing. Shery how disappointed are you india is not part of it . India at some point will answer. Southeast asia, china, greater asia, thats already a lot of momentum. Shery do businesses like you, such a large conglomerate, you are basically in every sector. What we arected by seeing in the world of trade and tech between the u. S. And china . To downplaytrying it in a way. Does it affect you at all . Very much so. On the trade side, less. We have trade with europe, china, the u. S. I dont think that has fallen into that. The technology shift will have an effect. It is unfortunate. Im a great believer in global standards, but we have to adjust to a changing landscape. I believe if there is this shift taking place between china Centric Technology and u. S. Western technology, it will affect all of us. Like everything in life, there atl be a significant effect a time when all of us want technology to become holistic and standardized. How would it affect you in particular . We are a Large Technology player in the philippines, one of the Largest Telecommunications players. We have a Banking Industry that relies on technology. We have been using technology from the west and from china. We have a relationship with ant financial. We do business on the micro lending. Right now, we are able to do business with both sides of the world. We will continue doing so and getting technologies that suit our country best. Shery lets talk about the philippine economy. We have seen you land revenues for residential dipping in the third quarter. How much of that is to do with International Buyers really seeing it dampen their investment . It has been a big run. The past decade has been good. You do get slowing down. In the philippines, we have a low interestrate rate environment, exchange rate, very strong household consumer demand. Extent, the Real Estate Industry may be slowing down, but it is still alive and doing well. It has been a good run. Shery what pockets of the Property Market are using seeing slowdown in . We have five from the top and lowest. Consumer items, housing, that needs to grow at a fairly high rate. Thats driven a lot by overseas buyers. That middle layer continues to grow. Also growing very fast is your ac energy business. What do you envision for your Energy Sector . Shift, we a big started in the Energy Sector. Our aim is to have five gigawatts of power under are controlled by 2025. The energy needs are tremendous. A massive shift towards renewables. Theres an opportunity to start technology. In the philippines we have been a big player. Now we are investing in solar and wind. Some opportunities in australia. With this shift taking place, technology has brought prices down. Great to have you with us. Thank you for joining us. Course, as a programming note, the new form is being organized, a division of bloomberg lp. We have plenty ahead from the New York Forum para. Duncan clark joins me later this hour. Also later today, we hear from the Primavera Capital founder. Plus, Goldman Sachs chairman and ceo david solomon. This is bloomberg. In the present day world, only cooperation is the answer. By working together, sorting out our differences, looking at the common ground, all of this is important. Change is happening. Singlefidence from a source for anybody in the world has reduced. People will be spreading their bets. From wont have a lot of the two countries. Business is doing quite well. There in the low double digits, low teens to the mid20s. Some of our guests giving their thoughts on the trade war. Chinas chief negotiator has expressed cautious optimism about a phase one trade deal with the u. S. He made the comments at a dinner on wednesday before the u. S. House passed a bill supporting hong kongs protesters. Im joined here in beijing by sean. Is it the first time we are meeting in person . So. Think it is just like being on tv. Shery lets talk about this. The vice premier with cautious optimism. You have the hong kong human rights. The real question is are we watching another of these false throws . Both sides have an interest in getting the phase one deal done. It seems like every time they make progress, something happens to complicate the picture. That is happening. We also have had President Trump saying he will sign it. How do the chinese react . Can they do what they have done so far in these trade talks, compartmentalize the issue and try and keep going . Shery can the president use this as a bargaining chip . I dont know if it is a bargaining chip necessarily. The real question is the nittygritty details on how much they are going to will back my in terms of tariffs, what the chinese will agree to include, and they are also talking about chinas schedule, phase two, possibly a phase three. That is a long way away. When you talk to your sources, do you get a sense of potential optimism over what comes next . What happens after phase one . Will it lead to a broader deal . It is a big question in washington there needs to be a phase two for donald trump to sell this to the electorate next year. Also to the china hocks both in his own administration and washington. On capitol hill and congress, senator marco rubio, they has been skeptical. He needs to lay out not just a phase one deal, but a path forward beyond that. Shery when it comes to phase one, do we have any dia of the size, any of the tariffs already in place . Donald trump said it would include 60 of the deal they thought they had in may. It is unclear how he gets that number. Some other folks have a much lower number. Shery you are not necessarily there are going to be commitments on intellectual property in the phase one deal. In the beginning of some concessions on forced technology. There will be bigger openings, things like the financial sector. Some of the things china is doing already. If you can wrap them in a bow, maybe you can get a win for both sides. Shery so many questions unanswered. Sean trying to help us with where the negotiations are going. Thank you very much for that. Breaking news coming out of the hong kong government. It is to do with their reaction to the house passing this bill that backs the protesters in hong kong. Saying isovernment is it is against it. It strongly opposes the passage of that bill, saying it will not help ease social unrest in the territory. Does send thebill wrong signal to violent protesters. Bloomberg new Economy Forum taking place in beijing after this. A quick check of the latest business flash headlines. Softbank is said to be in talks to receive as much as 2. 8 billion in financing. Companies ready to provide loans as part of the regular financing. Is nikkei news said softbank paving the way for its 3 billion offer to we work shareholders. The Prime MinisterScott Morrison said should deeply reflect the ceos future after he declined to resign with the bank accused of the biggest breach of roles in history. Reached money laundering. More than 23 million times failed to detect payments. President trump says hes considering offering apple an invention from paris on goods imported from china, touring an apple facility with the ceo. He said it isnt fair for apple to be taxed and vices made in china, given samsung doesnt have to pay similar duties. Iphones, and laptops from december 15. We are looking at that. Company, aat competitor of apple. It is not fair, because we have a great deal. We made a great deal. Apple with aeat similar basis as we treat samsung. Lets have a look at the stock of the hour. This is a market mover. Down at the moment. Just over 5 in a declining market. The reasons for this seems inextricable. It is an ecommerce discretionary firm. Normally food delivery and the like. Down and delivery, other services. Earnings coming out later today. Expand freshto food stores today. They opened in an of them in the technology. That is something they will announce this afternoon. Biggest tech and Ecommerce Companies have been opening Offline Stores for fast food in recent years. Includes alibaba. Open its first set shop in beijing in 2017. There are some of the other stocks. These are the biggest. Directly declined 22 after massive miss in the u. S. Not trading at the moment, because it is a u. S. Traded company. In this part of the world currently, great news. Anticipation of earnings. Thats what we have at the moment. This is what we have market wise. Lunch break in china. Shanghai and shenzhen. Lows of the day. Talking washington, beijing. Had some positive noise come through. Premier saying he was cautiously optimistic on a trade agreement. He also said he was perplexed by the attitude of u. S. Negotiators. Thing causing some dissonance between the sides. Heading to break. Lets leave you with whats going on in shanghai. Im all about my bed. This mattress is dangerously comfortable. When i get in, i literally say ah. Experience deeper rest with the awardwinning leesa mattress. This bed hugs my body. Im now a morning person. The leesa mattress is designed for every body. Providing strong support, pressure relief and optimized airflow to keep you cool. Hello bed of my dreams. Order online, well build it, box it and ship it to your door so you can try the leesa mattress at home. Love it, or get a full refund. And rest assured, returns are free and easy. I love my leesa. Today is gonna be great. Find out why so many people love the leesa mattress, then try it in your own home. Order now to get big savings but only for a limited time. Just go to leesa. Com today. You need this bed. Protesters in hong kong. This is according to a person close to the what has. Congress overwhelmingly voted to support this bill. We are told may go to the president as soon as thursday for signing. With escalated tension china that threatens the longawaited trade deal. The impeachment hearings have tll tolled by a trump worker admitting u. S. Envoy, Gordon Sondland said that Rudy Giuliani was working at the president s direction. Some say that any road to diplomacy in ukraine he further said that there was no rogue agency. Everyone was in the loop. Separate campaign events, he consistently confused the levels of fact being placed by the government. Later, thers conservative party clarified his comments and corrected his figures. Boeing is facing more pressure to decide on the future of the jumbo jet. This is the Southern California factory that has produced beingges for every 747 is torn down and sulfur parts. Largest supplier of the 748 program. News, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan, this is bloomberg. Alibaba raised around 11 a hong in Hong Kong Kong share sale. 76 hong kong dollars each. 80 in new york. This is as china has been pushing for companies to live closer to hong kong. Has formally served as the British Chamber of commerce in china. You are also the author of this book about alibaba. Both into the show and welcome Economy Forum. G the standoff has no solution at this moment. Listen to hong kong now why list in hong kong now . It is purely online. The timing is a shot of confidence in hong kong as a financial center. It is bringing to get it the information zone and the trading zone. Training has always been in new york. The information zone is china. Alibaba is fundamentally focused on the chinese market. People in china know it a lot better. How much has this helped alibaba in the eyes of beijing . It is not unhelpful. Follow the party line. Interpreteds been pretty well where it is moving. This is a helpful move. It also makes sense for them to have around the clock