Can they deliver in shanghai . Bet that heaking a can succeed where others failed. To japan ands get south korea, coming online. Began is study. Fiveyear auction. Olding around we have not been at this level since easing ramped up. We are seeing the cost be moving to the downside about 4 10 of 1 . The korean won is on the retreat as well. A little change fluctuating after a threeday event with the aussie dollar holding steady. A look at how aussie bonds are faring. The 10 year yield fell as much as five basis points. Her marks in sydney, in which he noted that week consumption growth was a surprise but he remains confident that there will be a pickup. Looking at 63uan as we are waiting for more trade details. I want to highlight mexican peso trading around a high. After not time to celebrate just yet. Paul lets get some more on that nafta 2. 0. Last minute have arisen over the new trade deal. A deal was closer, but Speaker Pelosi saying nothing has been agreed to yet. Canadian officials expected to join the talks. People may have been killed in a volcanic eruption after explosions in the day of plenty with eight more people still unaccounted for and 31 being treated in hospitals. House isiconic opera again shrouded in smoke today. There is an official warning, pushing temperatures over 40 degrees. Fires said to the be out of control. Hong kong facing its worst economic slump. Survey by the Association Says about a third is laying off staff. Many others expect to go out of business. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Beijing will release Inflation Numbers in about an hour and a half. Expecting a pickup. Lets ring in kathleen hays. Fever had aswine number of those inflation figures. Kathleen prices are up 120 yearoveryear. Huge numbers of the pig herds wiped out. Fact, food prices are expected to continue to rise. Letgo into the chart me explain its eu. The ones down here look very small. The turquoise one is the food cpi. They are actually not that low. Withad the food cpi up headline up. The chart needs to leave room for what happened. Is pork price is what driving inflation. People are wondering what this means for the pboc. , look, weey would say are not going to worry about ymer prices when so much is driven by pork. Has aise, the consumer lot of sluggishness. They are watching what they ,hink they need to do continuing to take a toll on the economy. They have no thought on how to respond. Toy still have to be looking see if the stimulus will be met. Paul that is Consumer Prices. Kind of the opposite story here. Yes. Een this is what matters most to the peoples bank of china. E saw the latest trade report they were down 1. 1 . Chart,ook at another this raises an important question. The month of november, we are expecting to see less at 1. 5 yearoveryear. The previous month was one point express that. And 2018. 17 you can see that the ppi has fallen. Whenchart is saying, back there was much more severe ppi deflation, again, it is poised to do something on either . No. But this is what we are watching most closely and hoping that something works to make a shift here. Kathleen hays, thank you for joining us. We will have more on the numbers. We will also speak to j. P. Morgan and the global meetings economist. Still to come, Coastal Savings Bank of china makes its debut. Drawing the lowest retail demand in half a decade. Fixed and ahead of income, sticking to her highyield gun. This is bloomberg. Daybreak asia. Raising new concerns about contagions. Rising to a record 17. 9 billion this year. Fiona, thank you for joining us. We do cede to full risk rising in china. This becoming more of a concern as the economy slows down russian mark we have the cautious in some of China Industrial sectors. Tight for the enterprise in china, and also with the challenges from the u. S. China trade war. This is not something out of our expectation. Important that we look at the temperature of the company. They do not have the guarantee, to havewill be the case more default. We see this anymore idiosyncratic case. Actually, in terms of percentage. Still very low, but a record year. What would your expectations be for 2020 . Is there more disclosure needed . Yes. It will continue to rise in china. In terms of disclosure, you are very right. Issuers, theye may not be listed in the stock exchange. Publish their financial statement. I think investors have to be more cautious about those kind of companies. Shery some are instituting tightening measures. Pheona on the other hand, we are seeing more cities launching measures. For example, there are many cities that try to attract talent in their areas. They allow those talents to buy a flat in the city, even though they have to pay several years of back payments. This is something that we think will continue to support the company market. If you look at the contract figures, which have been very impressive, especially for september and october. We think it is supported by the structural demand. How positive is it that we are seeing this in china . Despite the fact that the government is allowing this to happen and for the markets to take over . Think we always have the impression that some of the company will be saved by the local government. Support some of the companies. Now, they might just buy the asset of the company. Investor, we as an are getting selective in seeing which one will have the support of the government. In the end, i think it is important that we look at the underlying. Paul you do see opportunities. Are there any names in particular . Think we see the local currency bond. Economy that has a chance to cut rates, including indonesia. Also, the central bank has done a lot of good things. It seems that 2020 could be last year in reverse. Many seeing yield curves. What will that do to the asian credit market . Important is mostly that we remain stable. It will be more constructive. Policy, of the fed rate they will reverse the rate cut they have this year. , we will still have a low rate. Chance. A for next year,t we actually prefer highyield. Thank you for your insight. One hedge fund is putting almost a third of its macro fund into investments. The coceo spoke to bloomberg nc bloomberg. The opportunities that we have seen and continue to see where markets are underpriced. Communitym the retail , where they look to pick up selling options. Think, as soon as the end of phaseeek, we will see four be of the tariffs kicking in. Think the relationship between china and u. S. On trade will be changed. I doubt that there will be anything significant on the front of what they call phase one skinny deal. Options are on current is an Interest Rates. For example, right now come the market is pricing in the fed in the next two meetings. That is only two basis points priced in. Potentially, the trade talks falling apart. Little priced in to the markets. I had to say yes. Until it becomes clear what the new normal will be. Theweeks ago, we had elections, which came in publicly. In favor of the democratic party. Since that point, it has not been clear what changes. The underlying unhappiness will likely continue until something is done, but i am not entirely sure what the current Hong Kong Government can do. Changed the strategy . We are in an environment where things feel very stable, ironically. In my view, every portfolio should look for ways to hedge details. We look to profit from certain moves. Portfolio isof the in this dislocation hunting at the moment . About 30 . There will be certain moments where it could be higher. Maybe twice a year, but now, it might end up being more stretched out where it would be to years or three years before you see a big move. I believe it will be a lot larger than it used to be. The magnitude is going to be more. It depends on what the trigger will be. I would not absolutely rule it out. That is capital ico. Next, australia is expected to post worst Profit Growth in asia. More details on that story. This is bloomberg. Paul you are watching daybreak asia. Posting the worst Profit Growth in asia next year. Earnings from the index may rise by 4. 2 . Hat is half the increase more on this, we are joined by our reporter. Why is the profit outlook looking at bleak as that . Are many reasons why it is looking bleak for next year. It has grown at the slowest pace in more than a decade. Banks make up a large portion of australias index. There dealing with they are dealing with falling interest rate. It is not looking great for next year. When can we expect the economic revival to kick off . Are looking very cautious at stocks. There should be a Global Economic recovery next year, although some are cautious about how that will play out because valuations are looking pretty stretched. Some are saying that stocks may not benefit much from the recovery, but there are some analysts that are seeing some bright spots. Poised to do pretty well next year, if there is a recovery. Shery lets get into a quick check of the latest headlines. Goldman sachs being asked to raise financing. Tonk is starting to of arrange a line of credit. Funding. N in in order to make the deal more palatable, softbank will be listed as a borrower. Starbucks Ceo Kevin Johnson and could be looking at a 150 million cash bonus. Be reduced andd eliminated if the stock beats its peers. Bonusess says the define high caliber leadership. Shery ready to add the largest carmaker. And motor are inviting carmakers in the new audi seven. They have reached a point where they can start setting up a supply chain. As sole the Group Partner in china. Plenty more to come on daybreak asia. This is bloomberg. Paul you are seeing this pictures of malvern melbourne. A survey for the month of november. Of two ina score october. In november. Industriesin all sliding, except for the retail wholesalers. Some concerns that many australians are saving after the tax cuts. The aussie dollar little changed. Lets get over to Sophie Kamaruddin in hong kong. Sophie very much in a Holding Pattern with stocks and encz lower and not really budging. Drop. E the leading notd decline with a five year yield. Yearighest level in a where they are little changed here. Not 0 level not happening just yet. Towards positive territory is a foreshadow. Sliding, moving into 2020. Very much in vogue with a high above 2 . You can tell by the blue line on this chart. Namesre among the participating with treasury yields and a call for the 10 year to drop. On the other hand, goldman is to most there is forecast end 2020 with no action. Check onts turn for a the first word headlines. Lastminute doubts have arisen over new trade deals. Democrats saying they are on the verge of a deal. Nancy pelosi is saying nothing has been agreed as of yet. Canadian officials expecting to join the talks. Russia and ukraine say they are committed to a ceasefire. Leastnflict has seen at 14,000. Becoming more emboldened in the region. They continued to exchange fire. Fed chairman has died at the age of 92. He led the bid of risktaking in the big banks. He became a oneman cleanup crew. Mostns exports rose the in more than a year. Climbed 3. 3 ments last month. Been expecting an increase. Russian president Vladimir Putin ban russiasion to for four years. The move Vladimir Putin says it is politically motivated. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Lets talk about china now. Consumer Price Inflation could have accelerated on year on year meetings. Park has driven Inflation Higher this year. Great to have you with us. We have seen put prices reverse a little bit lee. Oft can we expect in terms consumer inflation in general as we continue to be african wine fever really affecting those numbers . 94 56 is the number actually showing. Ppi and factory deflation. Inflation index sinking to a three year low. The world catches a cold as well. Now we have our guests joining us from hong kong. Great to have you with us. Expectationt your for Inflation Numbers. Furtherpect it to raise from 3. 8 last month. On the back half, rising pork price. Deflation, expected to narrow. Continuing to narrow on the basis. Year on year growth driven by the base. Shery what can you tell us about how these numbers will , not doing enough to boost economy. The pboc has been somewhat reluctant because there has been caught a light quite a lot of constraint concerning the housing bubble. But we see that the pboc has withd more accommodative rate cuts being delivered, so as the pboc has been prioritizing in the near term, also signaled there meetings, we think would be a modest five basis points cut ater this month. So you do expect more using. As more stimulus going to be needed from the pboc . Pboc reflects somewhat of a delay as the government strong loading of the will be unlikely to happen before january. We do expect more bond issuance on the way. The chapter investment, keeping pace in the coming months. , there is to for the big projects. For have responsibilities that accumulation. So the inside structure will rebound. Paul you can see the surprise index sinking to a three year low. China exporting deflation to the rest of the world . The Global Economy had been facing a downturn. Finding a way. Andall demand, domestic global, in terms of where china is exporting is much less significant than five years ago. What would a phase one deal do you for the chinese economy and local economy, if we get there . Confirmedo have a deal, that clearly will help to lift Market Sentiment and supporting a Business Investment and supporting the market. It would also matter for the economy, as well as for currency. , we do not need higher tariffs. Heard that it could affect currency ledgers. How would that affect the chinese economy. We have heard from the pboc governor recently. They are pledging to keep the yuan flexible. Way, it is in chinas interest because we know the government continues to have those controls in place. So stabilize the currency, it is in chinas interest. , strength ofterm demand and strength of internal demand. The Global Economy is moving towards stabilization. Stabilizing and to some extent recovering. Paul asia specific economist, thank you for joining us. Trading come, making it debut in shanghai. Bloomberg. Shery this is daybreak asia. Paul im paul allen in sydney. Shares start trading and china is a. Amidargers it comes tepid demand. Lets bring in selina wang. What are the expectation for when it goes public . We are expecting it to reflect the current demand. Low turnover and low liquidity. The deal was oversubscribed. Demand sinceowest 2015, shortly before the market crashed. We know that underwriters will have to pay more than 90 million. More recently, we have seen more regular. Comes week after a Chinese Chemical Company became pricerst to list its since 2012. Ipos why is buying into coming more risky . Context. To give some chinas largest, listed in hong kong with the most branch networks. More than half a billion customers. It is going to be one of the largest around the world, after alibaba. In terms of the Challenging Market conditions you will see Investor Sentiment erode. U. S. China trade war and corporate morning earnings. Take a look at this chart and you will see that turnover on the mainland market is down more than 60 in march. They low. Volatility has been low. Government has been easing and bailing out more banks. You also have the government encouraging banks to step up lending. The outlook is not looking good. Shery our china correspondent in beijing. Lets turn to the worlds biggest gambling hub. Macau casinos are poised for since 2016,decline and next year may not be much better. Is our consumer reporter. Selena was telling us about economic challenges for china. Is this why vips are staying away . Whyhat was the main reason we were not very optimistic onause trade war is going with Consumer Spending power. In the middle of the year, analysts work saying that they might be recovering. There was one setback after another, a hong kong protest. More regional casinos opening up, including one operated in vietnam, by one of the biggest groups. It will be even harder for macau to see more growth in 2020 and going forward. Worsttalk about the growth and gamblers. They are hoping that they can gamble and save the dropping. That is a big problem because they spend a lot. There are a billion plus citizens, but they are not spending as much. It brings in more sentiments into the market. Another building resource. It looks like a lotus. That that will be the growth story. Shery thank you. Vietnameseext, autostart up trying to do something not even toyota or hyundai could achieve. Shery lets get a quick check of the latest headlines. Apple is returning to the las vegas show for the first time in decades. Discussing Consumer Privacy rather than unveiling a new product. Apple has worked behindthescenes for years, speaking with partners and suppliers. About stanley is cutting 1500 jobs around the world as part of an efficiency drive. It will also affect staff and sales, trading and research. In new include workers york and london. Indias struggling bank is unlikely to reject an offer to raise 2 billion in capital. Y are expected yes bank initially fell on the news but reversed to move higher. Since are down 17 november. Vietnams richest man is driving to do something not even toyota or hyundai could do. Who is vietnams richest man and how big of a gamble is this hen . He is the richest man in vietnam. He told us in an exclusive interview that he plans to invest 2 billion of his fortune to bring vietnamese cars to america. That is an ambitious plan. Ofwould be leading the likes hyundai and toyota. Big gamble for the conglomerate in vietnam. For will be responsible millions of dollars of annual losses for the next five years. Aggressivesuch an and fast timeline . He said this is what they are poised to do. You go from producing fast powered cars they just rolled those cars off vietnam