Climate change. Boeing brings its failed spacecraft, at the end of a difficult year for the company. Get you started with a quick check of the markets. The u. S. Session on friday, markets wrap at record highs with the dow seeing its biggest gain in a week. The s p 500 seeing the biggest weekly gain since september. We had health care and tach leading the gains on the s p 500. Strong consumer numbers out of the u. S. Gave the market a boost. We are setting up for a Holiday Light calendar this week. Most stock markets across the world will be closed on december 5. We have u. S. Newhome Sales Numbers to look forward to on the monday session. Lets see how we are setting up for the asian markets. Sophie after a lackluster friday, we are mixed this monday. They were going to be gauging reactions to reports that japan has eased export controls to south korea. Lets check in on aussie bonds at the start of cash trade. We have the aussie 10 year yield rising back above 1. 3, the highest level since july 23. The aussie dollar is below 69 after crossing the hundred Day Moving Average on friday the yen holding at 109. Pound have the worst begin months on brexit concerns. I will check in on the agenda this monday. We will get trade figures from south korea, thailand, inflation from singapore. From australia, we get a gauge of private sector credit. Paul lets check the first word news with su keenan. To hong kong is back business as usual monday morning after tense scuffles saw a Police Officer draw his gun and point it at a protesting crowd. No shots were fired in the incident, which escalated during a rally in the city center. Demonstrators gathered to show support for chinas week are minority. Witnesses say police stormed the authority after a chinese flag was ripped from a pole near city hall. The Indian Government is defending its controversial citizenship law as protests continue throughout the country. Narendra modi asked supporters to defend lawmakers from pushing the bill through and accused opponents of spreading lies. Violence is on the increase with at least 17 People Killed while four have died in a some and two in another town. Australia, bushfires are burning out of control in New South Wales, devastating farmland and disrupting thousands of people. At least eight are known to have been killed and hundreds of buildings burned down. The fires are being stoped by record temperatures with the government encouraged government criticized her downplaying Climate Change. Space has brought its capsule back to earth after a failed mission to the International Space station. The capsule touched down in new mexico in nasas first touchdown on land. The star liner made 33 orbits during its aborted mission. It took off friday but was unable to reach the iss. The star liner is designed to carry up to seven astronauts. Malaysias attorney general tommy thomas says he is ready to ratchet up a criminal case against Goldman Sachs for its role in the 1mdb affair. Thomas told us he is planning to bring the banks executives to court in malaysia regardless of any supplements in the u. S. It doesnt matter if it is settled with the u. S. It does not help them one bit and it does not affect our prosecution of the case. In our can see more exclusive interview in the next 10 minutes. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan. This is bloomberg. We are into the final stretch of trading in 2019 and barring a huge reversal, the worlds major Asset Classes are on course for the strongest annual performance in a decade. Most Asset Classes have advanced this year. Includes some big gains at the top. Lets see if this can continue into 2020 with ig Group Markets analyst kyle rodda. We have seen fabulous gains. Pretty much the only way to not make money was to not get involved. The key question is, is 2020 going to be a repeat . We saw this year, very unlikely. It does depend where you draw the line in the sand. We saw markets hit lows practically this time last year. If i was sitting in the chair at 20 at this time, it would be a different conversation. It was supported by fed policy, Interest Rate cuts, and the bolstering of the balance sheet. Whether we will see the same thing next year is very unlikely considering those dynamics, but markets are positioning for upsides. They remain bullish on risk assets at the very least. Paul we do have a second chart that points out the not so fabulous gains, if you take into advance going back to september 18. How much of those gains are due to the big correction at the end of last year and centralbank dovishness . Kyle most of it. If you follow the core of this narrative, it is the fact we saw the selloff last year precipitated by fed chair powell trophy has a long way from neutral comments october 3. That is where we saw the fall. It was only when the fed backed away from this hawkish stance and pushing rates higher that we started to see a recovery in Financial Markets. 2019, take a lesson from one, you dont fight the fed. The other thing is policymakers and politicians around the world have realized how in extra goodly linked how an extra goodly linked the health of Financial Markets are to sustaining Economic Growth in the Global Economy. The feds transmission mechanism works for asset prices and the stock market. That is what we saw as the theme in 2019, first of all the stopping of Interest Rate hikes at the end of last year gave us the base. Progressively we saw the rhetoric change from one where the fed was on hold, the one where the fed was cutting, and now the fed will be on hold for a longer period of time going into 2020, underwriting this market, as well as the removal of headwinds around global trade. That is what we have to take away. The fed put us in the position and saved the day, as well as others centralbank policy, and that is why we saw outstanding returns across many Asset Classes. Shery on the removal of trade headwinds, are you on the view that we could have more pentup demand going into next year because the trade risk has been removed . Four could it be we have already frontloaded those gains, expecting trade tensions would get worse . Kyle i think there is an element we are looking for a turnaround in fundamentals. I dont think we have seen a great deal of upside surprise in the data. The fundamentals are there to wetify the valuations that are currently seeing, but on the same token, once we do start seeing the data, the upside should come from that, and the Earnings Growth that should come along with it now that the major markets in the world of 2019. The real question is how much upside is there. A reboundd seem to be in the Global Economy playing out. Business activity is starting to lift. We are starting to see markets that underperformed three 2018 underperformed through 2019 pricing out the risk premium in the evaluation, particularly in asian indices. We are seeing a rebound in growth in the United States. That is where the supposed growth is going to come from in 2019. There is justification to say the fundamentals are turning, that we have not seen confirmation in price or data yet. The risk is good to the upside, but it is still tentative. We are still looking for confirmation. Shery you say the one market that could outperform in 2020 is the hang seng index and hong kong. That market has been really volatile, subject to every headline that comes from the protests going on for seven months. Thegtv chart showing you economic fundamentals are for the bad now we are in a recession, so where do you see the upside coming from . Kyle my point on the hang seng is more that it is tied to the Global Markets that provide the best risk reward ratios based on the headwinds we are seeing removed from the market index. You would be looking at the nikkei and kospi in particular, the economies that have been hurt by the trademark as well as the slowdown we have seen accelerate in the chinese economy this year. It goes back to the point we were making before. If you look at valuations across even european indices u. S. Stock markets are a great example the markets pushed a strong growth rate down. If you are looking for risk reward, it is on a trading basis. Effectively the hang seng has a little bit of upside to a base valuation. If we start seeing the risk around domestic issues. The markets in the asian periphery is where it is going to come from. The chinese driven turnaround in the markets throughout that region will be relative to other benchmark indices around the globe. Paul ig Group Markets analyst kyle rodda, thank you for joining us. Still to come, we take a look at the chances of a phase two trade deal next year with Christopher Nixon cox. Shery next, the malaysian attorney general says he is ready to prosecute Goldman Sachs in connection with the 1mdb scandal. Our exclusive interview coming up. This is bloomberg. Paul we are counting down to the open in sydney. Futures currently looking weaker. Witharbor reasonably clear winds keeping the smoke away, but it was a difficult weekend for the bushfires. I am paul allen in sydney. Shery i am shery allen in new york. China is taking more steps to open up sectors ranging from energy to telecoms medications. Jen one you says the government will offer tax breaks and lower financing costs for private companies, which accounts for half of the mainland economy. We have our china correspondent selina wang. We have heard from beijing they will be opening up their financial sector. How much farther does this go . Statementcording to a reported by a news network, this is part of a Broader Market using recommendation targeted specifically to help these private companies. It is also part of an effort to open up industries from oil and gas, telecommunications, railways. Private companies have gotten squeezed with tougher access to capital as chinas economy has slowed and we are seeing warning signs and the Banking Sector as well as a crackdown on shadow lending. Small companies have gotten squeezed very hard in particular, so this plan also includes efforts to further lower the cost of financing to these Small Companies and the creation of Financial Institutions to serve these types of companies. To ease the burden of financing, the government is backing bond issuance for those companies as well as lowering the threshold for new convertible bonds. It is imperative for the Chinese Government to help these private companies, given they employ hundreds of millions of people. They also account for about 60 of chinas economy, and these Broader Market sector opening plans and efforts to boost private companies also fits into program,boot, one road which is an effort to boost these private companies in the infrastructure brands plans that increase chinas political clout. Paul china is hosting a summit with japan and south korea. One is on the agenda there . Selina japan is hosting the trilateral agreement with japan and south korea. Ahead of that is you have some easing of tensions with japan and south korea. The long, protracted trade war has caused significant pain to its Major Trading partners, which includes south korea and japan. You have increasing tensions between japan and south korea when it comes to trade, National Security issues, disagreements around compensation for wartime forced labor. Economic and trade issues are high on the list. An agreement should happen to speed up negotiations around the free trade agreement. You also had Chinas Commerce Ministry calling for more trade cooperation. On top of the economic and trade issues, the issue of north korea and its Nuclear Missile test are also likely to be high on the agenda. You had china along with russia arguing to the United NationsSecurity Council that sanctions should be lifted on north korea, but it is unclear if japan and south korea are going to take sides with beijing against the u. S. s demands. Paul selina wang, thanks for joining us. Malaysia is top Prosecutor Says he is ready to ratchet up the criminal case against Goldman Sachs. Attorney general tommy thomas spoke to bloomberg about reports that goldman is in settlement talks with u. S. Authorities. How that might affect malaysias case. Cynical about all the press releases. I wonder whether they are selfserving and self generating by Goldman Sachs. The last time i office spoke to the doj, they said they were far away from settlement. At the end of the day, each country decides what they must do in respect of its national interest. As far as malaysia is concerned, we are not terribly concerned about what happens in the u. S. Or singapore with relation to Goldman Sachs. Nation, we will do what is right in malaysias interests. Does the latest development with regard to the u. S. Front affect 17 goldman directors for malaysia . Mr. Thomas it doesnt matter really if they settle with the u. S. It doesnt help them one bit and doesnt affect our prosecution of the case. When might malaysia see a deal . Mr. Thomas so far as malaysia is concerned, it is Public Knowledge there have been talks, rounds of negotiations, but they have not gone anywhere. There is still a Pacific Ocean gulf between malaysia and Goldman Sachs. We are concerned the door to settlement is always open. They know where we are. They can come see us if they want to find us. We are proceeding with preparing the case for prosecution. As any trial lawyer will tell you, whether it is civil or criminal, you can settle on the first day of trial or in the middle of trial. As far as malaysia is concerned, it is conducted in we prepared for the trial and if there is settlement talks, we can do it simultaneously. Sophie should there be a settlement, how much can malaysia get . There have been many numbers bandied about. Mr. Thomas one mbd was borrowing 6. 5 million against government guarantees and Goldman Sachs was structuring that. Our loss, as far as we are concerned, malaysias primary physician is we did not need primary position is we did not need those bonds. It did not serve malaysias interest in 2012 and 2013 to have those bonds. They were thrust on us. We are now saddled with repaying those bonds. The people of malaysia, because of the government guarantee, have to repay the bond. With interest. The principle is 6. 5, so with interest, eight or nine. Essentially malaysias primary argument is you have to pay back the principal and interest. Sophie a settlement with goldman is one avenue. In the past you have said you have a strong case against the bank. What kind of leverage to you have to prosecute effectively . Mr. Thomas as far as we are concerned, we are preparing for trial. We are hoping to have a trial in the middle of next year. ,hen i prepare a case for trial i am not too concerned about what our opponents are worried about. The burden is on us. We are the prosecution. How goldman and their lawyers respond is not my concern. Shery malaysian attorney general tommy thomas with Sophie Kamaruddin in kuala lumpur. Plenty market, on daybreak asia this is bloomberg. Shery you are watching daybreak australian. 2019 has been a particularly bad year for boeing and shareholders. The 737 max remains grounded with no sign of a return soon. While a Software Glitch caused the new Starliner Space capsule to abort a mission to the International Space station. What went wrong . Su this space capsule was an opportunity for boeing to reestablish its technical prowess. It appears to have done the opposite. With theable to dock International Space station and landed in new mexico six days ahead of schedule, aborting the original mission. In terms of nasa history, most space capsules land in the water. This was the first time there was actual landing, a successful landing, but on land. The take off on friday, the launch, went quite well. The ceo was there. It was a moment of pride for boeing. Butted off well enough, according to those close to the situation, it soon ran into problems that resulted in the vessel entering orbit, as one analyst called it embarrassingly off course. That began to raise further questions about not only their engineering prowess, but completing the mission, so it ended within two days. If you check out these stocks are for boeing, you can see the rough ride it has been for the company. Andmax jet remains grounded last week it was announced the 737 max production would be temporarily suspended, so all of this has raised questions about whats ahead for boeing. Paul quickly, how does 2020 look for this ceo Dennis Muilenburg . Can he decide can he survive . Su that is a big question because just days before the mishap with the spacecraft, several publications you are looking at pictures of muhlenberg who had to testify in washington on the 737 max jet fidelitys publications raised question