Doesnt mean he wont go through with it over the next couple weeks. Taking a look at where the nikkei is, ending the year lower by 0. 5 . The nikkei recovered 50 of its slide since its record in 2009. Goldman among those expecting some kind of lift for japanese stocks in the coming year. Fromys japan will benefit a Global Economic recovery. Lets turn the page and look at where we are in terms of currencies. We know it has been a quiet volatility at a five year low. If history is any guide, the , it ishe currency to buy a favorable month and it has risen seven out of the last 10 years. The hong kong dollar, it may be six months of the protest, the hong kong dollar said to have its strongest month in 16 years. This is how it is looking at this point. David since 2000 three, that was the last time we saw a gain of this magnitude for the hong kong currency. We are looking ahead to the open in india, it was quite a steep gain we had friday although i should point out, depending on which index you look at, all yams were substantially lighter than usual on the benchmark. Nifty futures pointing to a lower start. 7130 nine is your level. Taking a step back, quite a year, the last few trading sessions for the year for india and we hit record after record during a year when the economy is not doing quite well which tells you, this chart takes you back to 1990 on both benchmarks, the nifty and the sensex. We are 0. 3 from the record high. Doesnt seem we will get it today but one can hope. It seems inflow, the dollar drops story is playing into this market. We will get to the open later on. Paul allen is with us in sydney with an update on the first word news. Paul President Trump is facing criticism from political opponents and some supporters for reach leading a social media post that names the alleged whistleblower. The complaint from the whistleblower triggered the inquiry that led to impeachment. There are laws protecting whistleblowers from retaliation. House aides has kim jongun may have reconsidered his so called Christmas Gift to the u. S. Thanks to diplomacy efforts of President Trump. North korea suggested a gift would be forthcoming after demanding additional concessions as part of a stalled nuclear talk. National security advisor Robert Obrien says the u. S. Is ready to respond should kim fire additional longrange missiles. The philippines Disaster Response agency says at least 41 people are known to have been killed by a typhoon that hit the Country Christmas eve. Dozens more are missing and injured and the agency says the damage to local crops and infrastructure totals near 20 million. The typhoon was the 21st cyclone to hit the country this year. Fraudulent labels on products that they said was made locally. Chinese manufacturers are trying to bypass u. S. Tariffs. The department is investigating local firms that set up operations to import chinese accessories and export to the u. S. And europe. Chinas top lawmaking body approved changes to the companys security law easing listing rules and stiffening penalties for violations. The revisions affect from march 1, and they specify deposited very receipts depository receipts and stocks and corporate bonds. News 24 hours per day, powered by 2700 journalists and analysts, this is bloomberg. Haslinda lets go back to markets and what to watch. Lets bring in mark cranfield. A new loanopting pricing regime. What does that mean now and for the longerterm . Positive move. These incremental moves have been bringing down Interest Rates across different structures, but there is a big gap between loan rates and main market rates and increasing the pboc, the china pricing whats to be more driven by the real world so what happens in the money market is where we see daytoday reactions. Well over 100 basis point between the lending rates and money markets so there is room for the spread to come down. It will benefit all Chinese Companies. There is a 20 basis point gap between the old rate and the one they are proposing and that may come down further over time. Looking further ahead, it probably starts to mean Good Companies can borrow at better rates but poorer companies will have to pay up. They will have to pay a wider margin to get money. Supply and demand lending will take hold and it is not good for weaker companies. David that is how it should work, right . A credit officer looking at your loan book. There is that, there is improving data on the chinese economy, trade seems to have taken a backseat, and with that in mind, which assets will benefit most in early 2020 . If we do see the pickup in , like somets analysts are expecting in the first part of next year, that will be good for the equity sector in china, particularly the companies that are most exposed to foreign business. You would expect to see the big caps in china doing well and some of the Smaller Companies as well. Probably a good start for china equities and if they are doing well, that is usually positive for asian equities. As we said, in the credit space, initially it will probably be good for the Larger Companies in asia so you might see the credit rally continue. Bond markets in general, a bit sideways because the fed is seen as being on hold for most of next year so not much to say about fixed income. It will be skewed towards equities and commodities as well, a strong finish to 2019 across the commodity complex. That may continue particularly when you have assets like copper , which are tied to the direction of the chinese economy. That may extend a bit further. As for foreign exchange, probably a little slower but you can see this skewed towards a weaker dollar towards the years and. That may continue into the first part of next year. Mark, thank you. You can follow this story and the day cost trade and the days trade. Scroll up, scroll down and get commentary from mark and his team and analysis. Find out what is affecting your investments. Charging up tesla its China Expansion plans. Can the company stand out in this wide field of competition . Haslinda next, is there a new glimmer of hope in trade talks between the u. S. And china . We will break down the latest between washington and beijing. This is bloomberg. David welcome to the show. You are watching bloomberg markets. Beijing and washington working on a final the final details of the trade deal. Isenior chinese diplomats china will honor its commitments,s reminding the u. S. To make sure it follows theres. China joined by our executive editor. We need to talk about phase 2 . I think it is a little early yet. Everything looks good, on track for a signing in washington with ambassador lighthizer, but the ink hasnt been put to paper yet and if we do talk about phase two, there is a lot of difficult questions on the table. Hard to say if that will come to fruition. If we dont want to jump the gun now, there is still risk, right . Possible. G is we have seen lots of twists and turns in the trade war. Had a of now, we conversation between President Trump and president xi on the 20th of december. Everything looks on track. The ambassador and his remarks did raise the issue of taiwan and also there is hong kong and the situation in shin jump the situation and the bills winding their way through congress. Those at an element of uncertainty, but add an element of uncertainty, but it looks like we will get a phase one deal. Haslinda and that is good enough. Thank you for that. Lets bring in our guest, the head of india and South East Asia economics at oxford economics. Lots of optimism but has that been priced into the market . That is true, the market is anticipating a positive outcome. The outcome came out better than expectations but as used as you just said it is not a done deal. President trump has a tendency thingsrise, and these could flip flop. Assuming this deal get sealed on tests to have a lot of take in terms of china actually importing [indiscernible] and a lotto importing of tensions to be resolved. It is one day at a time. David some signshere are of stabilization in chinas economy but it is on a deceleration path. When you look at the come a 2020, you are sure growth will stabilize. What assumptions are you making . We have upgraded our china Growth Outlook slightly. They are not slipping below 6 yet. The can has been kicked down the road. Chinas [indiscernible] has been going up even while all this trade saga was unraveling. This seems like it is because growth would be much more downbeat than what has happened and they are readjusting expectations. In terms of the rest of the region benefiting from these improvements, what is really carrying the day for asia is domestic demand. With an abrupt ample macro policy space, that will help growth stabilize for the region. David very nice to see you. The conditions have improved on the trade front. You look at sentiment in the markets as well. My question is, we went into this year and what we saw was synchronized easing across the majority of Central Banks globally. Is there a chance we need to talk now that at some point towards the latter part of next year, some of these banks might need to tilt hawkish a little . An interesting question. I dont think at this point a turn is talking about to the hawkish. Im referring to this part of the world, you have seen upsets happening in terms of risk factors but i dont think so. Inflation concerns remain quite muted and the only central bank that comes to mind which might consider hiking would be bank of thailand, because it struggles it is troubled by a strong say. Domestic indicators growth will remain quite week, around 2. 4 around 2020. I dont see this hiking. What might not happen is further aggressive easing might not play out in many places. You mentioned thailand. What can the bank of thailand do and what should it do . Can it as an Economic Policy pursue one that in many ways decreases the current accounts . Structural,em is chronic underinvestment in thailand. That is partly the governments problem. It is not just the bank of thailand. The bank has tried to implement many things to rein in the baht, and it has appreciated, one of the bestperforming currencies on the side of the region. Unless they are able to take out that excess savings they have in the system and find ways to redistribute it, this isnt going to happen overnight, there will be more push for the government in terms of easing bottlenecks so the money, allocation can happen. A stronger currency is something they will have to live with some of the central bank, and control the pace of appreciation but not necessarily reverse it. Haslinda what they can do is limited considering that the economy is sluggish, it is slowing. What will this wrong the do for gdp . They cant cut more because of elevated debt levels. They will do is hold the rate steady for the rest of the year. Therel see these levels, is some fiscal stimulus announced and that will likely have the economy by early 2020. It has been approved by the government. That should support growth. The strong currency means even in the improvement in the external environment, thailand is probably not in a fitting as much as the other part of the world. Benefiting as much as the other parts of the world. Haslinda does it help the thailand is a member, a signatory of [indiscernible] accounts for 50 of the global population . It does. But it has been agreed in principle. Hese trade pacts are gigantic you had the reduction in import duties but they were part of aussie on they were a key part. , it is diluted, not what it was supposed to be. We wont really see a big impact. We will give it a mediumterm perspective. David since we are talking about trade, you have a full report, the Economic Forecast for the for vietnam. Growingut, the fastest economy across the region. A lot of inflows, supply chains moving there, are there any early signs that economy is overheating or facing capacity issues . Remains still going to the fastestgrowing economy but. T 6. 6 , there is a slowdown we think there are issues in terms of Lending Conditions and with the central bank of vietnam not likely to lower rates and Lending Conditions are looking to stay [indiscernible] but maybe not overheating. There is not a strong case for rates andll down there is fiscal constraint, so going back to my initial point in terms of, where will the country perform . The countries with them the maximum macro policy space are likely to see more growth. In vietnam, looking at the trade diversion and the external backdrop, domestic demand is going down and that could constrain growth in the coming year. Indonesia, at the last meeting the bank of indonesia caps kept its rates on hold for the first time in five months. Does that show optimism . Move shows they want to step in step with the fed. They were aggressive because, it has been ahead to the i had of the fed. Last year they went out ahead of the fed and ended up raising rates and given what is happening on the consumer demand front, not seeing any domestic demand traction in indonesia. Why are they hiking so much . Can they afford it . The reversal has been swift. I think it is wise they have done this because at least growth is stable, it is not falling off the cliff as it was in other places. They need to keep [indiscernible] in case we see renewed escalation in trade situations going forward. , a fairlyal question complicated situation. I will mention the country and you tell us what we need to keep an eye on. India. Politics, social agenda, economics on the back burner. I think at this point, that summarizes it. We saw a shift in terms of the mandate of the government in the contested election, and true to stepped tomodi has the order of things he was elected on. It is surprising because given the state of the economy and the rampant concern around unemployment that happened when he was elected, analysts expected him to change track and focus more on the economy but we havent seen that happen yet. The upcoming budget since should see more fiscal stimulus in terms of income tax. Grilli really, more of a situation playing out. In 2020, the key for india is that, do we see the government go back to what happened in the first and focus more on pushing Economic Reforms . How long are Foreign Investors going to be patient with the social agendapolitical agenda of the government and not penalize india . Toid you will be around answer that next year. Thank you so much. Happy new year, happy new decade to you. A look at the u. S. Dollar, we are headed up. Really, itsapse euro 8 on the bloomberg dollar the bloombergon dollar index. We completely wiped up a gains for the year. This is bloomberg. David welcome back. A quick check of the business flash headlines, a big story out of singapore, two Companies Applying for a daigle a license toking attract tech firms in the financial sector. One company will own a 60 stake. The Monetary Authority of singapore plans [indiscernible] virtual banking licenses to boost competition. Casinocan see no revenue is expected to continue plunging. 50 s estimated to fall by 15 year on year. Fallis following an 8 last month and a 3 drop the month before. Pay 8. 3ill reportedly million to each of its coceos if they are fired or leave the company. The chief legal officer would receive about 1. 5 million under those conditions. That is the queue for stock of the hour. You are looking at green town service. Haslinda surging as much as 20 in trading in hong kong. A Property Developer agreed to take a 10 stake in the company, and investors can expect investments after this particular purchase. ,aking a look at anr, 19 buys six holds, no one recommending a sell. To get a glimpse of this and other stocks of interest, go to the bloomberg. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Haslinda you are looking at live pictures of the lion city, almost 11 30 in singapore. A pretty cool morning, about 28 degrees celsius. Looking at the sgi, up 0. 1 , poised for its best year since 2017 in terms of dividend yield a trailingex, 4 on 12 month basis. Looking at the movers, among the biggest gainers are these companies. These are bluechip stocks. , lets get the first word headlines with paul allen. Chinas central bank ordered lenders to adopt a new loan pricing regime for all credit next year. This marks an end to the previous benchmark and takes another step towards liberalizing the financial system. The pboc asked banks to use the new rates as the pricing reference for all loans from january while gradually converting existing loans for the new base for march and august. Hong kongs economy is set to contract in the Fourth Quarter as the city reels from six months of violent social unrest. The financial secretary says it is inevitable that negative growth will continue and the government will be less flexible in using Financial Resources under an economic recession. Democracy demonstrations are set to continue into the new year with lisa proving a rally on new years day. Rallyh police approving a on new years day. With 900 50 homesfiresrned wit destroyed. The Prime Minister says will ber firefighters compensated for their efforts. As this is a very prolonged fire, this is putting additional demands on our firefighters in particular. It means the turnout and the callouts have been far more extensive than the previous years, and they are going above of thosexpected engaged in volunteer service. Paul the u. S. Launched airstrikes in iraq and syria on bases that they say are being used by an iranian backed militia. Mike pompeo says this follows attacks against coalition troops. They must respect the right of sovereignty. We took a decisive response that makes clear what President Trump has said for months, which is that we will not stand for standepublic to take