Investors are not so sure. A Virtual Reality platform picked up for oculus. We are live in san francisco. Lets get to sophie forecheck on markets. Sophie aussie shares are unchanged after a threeday gain. Kiwi shares building on gains after topping 11,000 on tuesday. Nikkei and cost be futures kospi are lower. Slide despite the enthusiasm we saw for alibaba shares, which closed about its issuance price. Lets check on housing bonds, which are gaining ground after the rba governor the move tracking treasuries. Aussie yields falling 35 basis points across the curve. The three years left below the rba cash rate. A bond rally expected to push the 10 year to 50 basis points with unconventional easing expected in the second half as the australian economy slows. The kiwi holding its threeday gain. This morning, we heard from the rb governor. Mentioned rbnzso is working with westpac after the findings in australia. Paul thanks very much. Lets check in with first word news. Chinaly indicators show is continuing to slow this month. Growth is already the weakest in three decades during the third quarter. The financial gauge from Bloomberg Economics shows that situation is continuing. Indicates board, it domestic demand is weakening. As earlyweakened indicators show Boris Johnsons conservative party is losing its lead. Labour making up some ground. A Hung Parliament raises prospects the impasse over brexit will drag into the new year. Dhabi is said to be ready to. 1 . 5 billion into the aramco ipo. That turned only tepid interest elsewhere. Abu dhabi will make the investments through one or more state bodies. A major foreign investor would be a relief for riyadh after a plan to market the ipo globally was abandoned. Malaysia will allow public hearings in a dispute between 1m db and an Investment Fund in a legal battle about billions of dollars. Judges in the court of appeal tacked malaysias argument tha private hearings are not satisfactory, because it would be determined without public scrutiny. Global 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. This is bloomberg. Paul thanks very much. We discuss americas hong kong bill as additional tariffs loom. Coming up next, a pivot. Why he was markets continue to outperform the rest of the world. This is bloomberg. Paul this is bloomberg daybreak asia. Shery the gains may not be much, but u. S. Stocks hit fresh highs. Equity will continue to dominate globally, even in the 2020 Election Year. Carol pepper is founder and ceo and joins me in studio. This chart on the bloomberg right now showing the ratio of u. S. Stocks against the rest of the world. They are tending to dominate. In the past few weeks, that has been challenged. Thiso think in 2020, momentum will continue. Carol i do. The strength of the u. S. Economy and that we have an Election Year is good for stocks. Earnings continue to be important. There is no real serious cloud in our economy. I manage money for billionaires all over the world. The consensus is this is where you put your safe money. You put money that you want to do well in the u. S. Markets. Although we have our political squabbles, it is considered a safe, secure market. Technology here will continue to dominate through 2020. I think it will be a place to put a significant bet in your portfolio. Shery among those political squabbles, what are your expectations about how 2020 will affect markets . Carol i think the Election Year will be surprising. I personally think everyone would like a moderate candidate in the middle. It is interesting Michael Bloomberg is in the race. He is my favorite as a moderate. Middle,n end up in the most of the republicans and democrats and independents will go that way. If we end up with a split house, that is going to lead to further moderation. As long as we are going in that direction, that tends to be what happens. I think it will continue to be positive. Markets dont get terribly volatile until two or three weeks before the election, then afterwards it is all over. Carol we have to disclose bloomberg, the majority owner of bloomberg. Paul in terms of the build up to the election, do you see a trade deal put in place by then . The president saying the phase one trade deal is in the final throes. We have been here before, havent we . Do you fear there could be a slip up in the final stretch . Carol the final election is when he wants to have the big ribbon on the trade box. We will still have a reason to Pay Attention to the trade talks. I think we will end up with a positive trait deal with china. We are going in that direction, and markets are right to be optimistic. I think it will happen, despite the unfortunate events happening in hong kong. Paul if we could get some of your calls you are a big fan of the tech sector. What do you like . Carol yesterday, we saw the earnings of a video chip Company Coming out. They focus on security and auto. That is a fantastic buy the longterm. Those sectors are going to do well. If you cant afford tech stocks and you are more of an etf person, i like the nasdaq. That has done extremely well this year. Go with a big basket. In the long run, put amazon in your grandkids portfolios. That will pay for their college education. The attacks on amazon and attack on big tech is a political ploy that the general electorate can understand, but that will fade away they get through the election. Amazon is still up 18 this year despite that. Shery today we saw best buy surge. They took a huge chunk of the online market. Could there be more competitors for the giant amazon is . Carol yes, but look at all of the new things amazon is going into. Drone delivery to your home. They are constantly expanding what it means to be amazon. I would not be surprised to see them going into health care. They have a big pocketbook. Last mile warehouse rates. A lot of people will have to deliver online guns. Amazon is better competition on that side. Online goods. Shery whether it is trade or global growth, we see u. S. Markets rising and the rest of the world going along for the ride. Would you care to go into overseas markets . Carol it depends on your time horizon. My clients, we have an Asset Allocation for every portfolio. If youre talking about a longterm portfolio, a family trust or grandchilds trust or something that has a longterm horizon, yes, certainly. In the longterm, International Markets will be great. 2020, u. S. Will continue to dominate. If you are a traitor trader at heart, momentum will continue to be with the u. S. Brexit is still a problem. The china trade talks will not get settled this year. Latin america is having a lot of political issues. Africa in the future will be amazing, but we are early. A lot of the wealthy families go into these lessdeveloped markets with direct deals, dividing hotels and real estate and these companies, and the buildings in vietnam and doing extremely well. India and these places will continue to be more volatile. Also with currency controls and the political shift, that is what makes it difficult. Carol, in terms of those larger markets, if we look at this chart on the bloomberg terminal, we can see Recession Risk rising in the u. K. , germany, china. When you are looking at markets you might want to avoid, are these on the list . Carol time horizon is the thing. Recession risks are rising. The u. K. , because they cant figure out how to handle brexit. Germany, overall challenges in europe. Have disclosure problems, accounting problems. Longterm, china is an amazing juggernaut. In the next 10 to 15 years, that will be the dominating markets in the world. President xi is brilliant. Time horizon is what you have to look at. Every time you construct a portfolio, look at your time horizon and put the investments in the right portfolio. Carol carol, thanks as always. Carol pepper, founder of pepper international. One company taking a beating is dell technologies. It cut its Sales Forecast for fiscal year 2020. Su keenan is following the after hours. Quarterly profit beat wall street estimates, but they dont like what they saw in the future. Gettingrosy outlook is the stock slammed. It is down as much as 4 . It is continuing lower during the conference call. The 2020 Sales Forecast disappointed. It slipped further off. Also, they missed on revenue. Again, revenue increased 1 to 22. 9 billion. They are paying 1. 1 billion in debt. That was part of the story. We mentioned quarterly profit beat estimates. Clearly, there is a focus on the outlook, particularly in this environment. They narrowed their guidance for 2020. 92. 5 billione range. That is slightly lower than before. Paul best buy coming to the rescue. What is the story . Su best buy is the poster child for the retailers fighting amazon. It is talking strong holiday season. Lets go to the regular retail sector. You can see how it lifted many boats. Dicks Sporting Goods is having tough sledding lately. Best buy up the digits. Dollar tree reported tariffs are hurting their bottom line. Lets go to best buys story. They are entering the season of the holiday on a positive note. They took analysts by surprise in terms of the strength of demand for tablets and smartphones and tech support. Easily beating projections. They are talking strong outlook for the holiday season. This is from last year. Notice you have a lot of shoppers lining up around the block before the store can open. They are predicting the same this season. Paul we have plenty more to come. Virtual bolstering its reality offerings with an acquisition of one of the offerings most popular games. We have the details in a moment. This is bloomberg. Shery this is bloomberg daybreak asia. Its facebook is bolstering Virtual Reality offerings with the acquisition of one of the industrys most popular games. The social network is buying the creator of beat saber to add to its existing oculus studio. Lets get to our tech reporter, kurt wagner. Tell us more about beat saber and why this is particularly important. Kurt this game is one of the most popular Virtual Reality games. It is a mixture of dance dance revolution with light sabers mixed in. It has gotten big in the last year and a half. When you look at an acquisition from someone like facebook, it shows they want to bring on good talent and bring on something that has hit mainstream in a way that a lot of Virtual Reality experiences happened. Havent. The issue when it comes to facebook and oculus, the technology is cool, but it has not gone mainstream in the way they initially thought. Maybe if you bring a game like this inhouse and give them the resources facebook has, maybe that can move Virtual Reality forward. Shery is this the beginning of more studio acquisitions . Kurt probably. As technology evolves, there is give and take about the benefits of the studio inhouse. Facebook and oculus have Developers Already on the payroll creating games like this. In this case, the beat saber crew will not be exclusive to oculus. They will make the game for other platforms. That gives you a sense of where we are as a vr industry, that facebook does not feel it needs the exclusivity shows they want to drum up excitement for vr more broadly. I imagine that will involve buying other developers, or at least supporting other Developers Moving forward. Maybe they find a way to give them money in other ways. Shery to another major deal, ebay selling stub hub to its than 4 rival for more billion. Acquisitions will give its founder and ceo a chance to reunite with another company he helped launch. We asked baker whether he regretted parting ways with stub hub in the first place. I had differences with my cofounder. I was pushed out of the business, remained a large shareholder. Before that decision was made. If it were up to me, i never would have sold it. Costing me a pretty penny to rebuy it, but we think it is a Great Purchase for viagogo. Has been criticism about the secondary ticket market. Viagogo has gotten criticism about its practices in the. Stub hub has criticism in the u. S. What is the advantage to someone like me going through one of your platforms . The whole premise of our businesses is to create accessibility for fans to get access to tickets. We have to earn our business every day from consumers to do that. The benefit, putting the two together now, you can buy a ticket for anywhere in the world seamlessly. Fans want a frictionless experience. So part of these platforms across various industries boils down to how much users can trust the system. There have been cracks in that system that have caused a degree of mistrust, to the point where regulators felt the need to speak out about it. Aredo you ensure that folks seeing Something Real and priced at the share market value . Eric when you talk about viagogo and stub hub, we dont set and stub hub, we dont set the prices. The buyer knows they will get the tickets on time, the seller knows they will get a. Get paid. We are building transparency and trust with users. Do you think as you get bigger as a company, you will face more regulatory scrutiny . Eric fans want to buy and sell tickets. That is popular with people. It is important you are always putting the consumers first and doing everything you can to improve. When you are at a certain scale, it will be the subject of attention. We think this will be positive for everyone in the value chain. You talked about how you have a sentimental attachment to the business. Do you think you got a good price . I read a bunch of notes this morning on ebay, and they also the price was above expectations. All said the price was above expectations. Eric the reason we thought it was a fair deal for all involved when you talk about the complementary nature of these two businesses, where viagogo has everything in terms of a phenomenal distillation platform, and stubhub is great in the states, that is not anybody else could have created from this combination. We think we are in a unique position to make this a fair trade for both parties. Where do you see the live event trend going next . Clearly, there is huge demand for people to have these kinds of experiences. What is the next hotspot in that kind of market . Eric when you talk about live events, technology has changed so many things that people do, shopping from home. The one thing that has been consistent is live events continue to grow. That is because of the emotional and visceral connection fans have. It can never be duplicated. A global basis as folks get disposable income. They want to go to live events. The train is not going to stop anytime soon. Founderis viagogo and ceo. Xerox is ramping up the pressure on hp, planning to go directly to shareholders to present its case for a tie up. The latest on the deal. Writing to the board, xerox wanted to apologize for its aggressive tactics. Xerox will urge shareholders to persuade the hp board to do the right thing. Shery citigroup has been fined by the bank of england for years of inaccurate reporting about its capital and liquidity levels. The Regulation Authority says between june 2014 and december of last year, three u. K. City units have significant flaws in the system they use to give information to regulators, as well as failing internal governance. Paul swiss bankers facing more pressure. Institutional Shareholder Services is urging investors to vote againstthe banks remuneration report. Iss says all directors should share accountability. Plenty more to come on bloomberg. This is bloomberg. Shery this is bloomberg daybreak asia. The reserve bank of australia has discussed unconventional policy. It says the necessary conditions are some way off. A Bond Buying Program is an option as the cash rate is at a quarter of 1 . The threshold for such stimulus has not been reached yet. His comments come as the rba forced to revise inflation. New zealand decided against loosening mortgage lending cards as rates rekindle in the housing market. Loanbnz governor says rates will remain at current levels for now. He says low rates can boost inflation, but also promote debt and risktaking. China is proposing to tighten the supervision of its biggest banks with an annual review of sciences. Regulators led by the pboc have onfted new rules systematically important lenders. China is seeking to contain growing threats in the countrys 43 trillion Financial Sector as slowing growth drives bad levels higher. The government of indias richest state has collapsed after four days. The Coalition Led by Prime Minister modis party failed. A major setback for modis ambitions to govern all of indias states. It is home to the countrys two main stock market and capital city, mumbai. Global 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. This is bloomberg. Trade optimism is back as President Trump says talks with china are in the final throes. The positive signals come after negotiators spoke by phone, beijing saying both sides reached consensus on solving core issues. Lets cross to our senior trade editor. Is there a sense we may be getting close . When might we see see income paper . That is the big question. We are used to President Trump weighing in with his views of whether talks are going well, and if they are not, criticizing on twitter. Today is an up arrow day. The talks are progressing. That said, key issues are still being worked out. We hear things like intellectual property theft is still in issue that needs work from the two sides. That highlights how important some of these outstanding issues are. There is no deal yet. That is the bottom line i am taking from today. We are hearing good words, at least, not giving up hope words from donald trump. Looms the hong kong issue in the background. This is one beijing sees as a domestic matter. Secretary pompeo waiting in on elections. We congratulate the people of hong kong