Hoping to get a recovery after drop that we had since december. A s flip the board and have look at your individual benchmarks as well. Reported, a bit of a surprise when it comes to recovery broadbased as you can see across the markets there as well. And flip things along change things, have a look at your currency markets there, the second one is perhaps one of the measures, if you will, have u to be able to say we properly priced in risk remium on the iran story and has it been priced out. You see the second dollar, not retracing all the way back. Quick ng dollar and a check of your commodity markets, we checked and rude is off about 2. 50 per barrel, the highs yesterday, the 10yearyearold, nothing 8. 811 . Ng there, thats your market story for now. Stable. Are lets take it to new york with su keenan. Begin with former National Security advisor john to on says he is willing testify if subpoenaed during President Trumps impeachment trial in the u. S. Senate. Drama in the h it complicates mitch medicine comes plan for swift witnesses. S without democrats say bolton is raising pressure on Senate Republicans testimony. Ditional meanwhile in china, they have on the d their stance u. S. Over the killing of general soleimani. Of force and unilateral action. Maximum restraint and dialogue to insure security in the middle east. Its obvious that the risk of taking actions of the United States violated basic norms of the relations. Al su the u. K. Politics now, the Opposition Labor Party will hold a threemonth contest to find a uccessor to leader Jeremy Corbin with the winner announced on april 4. Six lawmakers have put themselves forward. Polls are saying the brexit pokesman is currently leading the race. The main challenge is likely to spokeswoman siness rebecca long bailey. He latest with nissans former chairman. Nissan says that Carlos Ghosns escape to lebanon will not stop against him for what it calls, quote, the harm misconduct has caused. Ghosn is ready to name the people who he believes is behind and detention. Fox Business Network said it spoke to the former nissan boss weekend and ghosn revealed he has evidence that to es his arrest was a plot take him down. Global news 24 hours a day on air and on quick take by powered by more than 2,700 journalists and analysts countries. Im su keenan, this is bloomberg. Yvonne a standoff between the and iran is continuing to dominate the news after last of general ng soleimani. The pentagon has sent additional east and the middle ark esper insists the u. S. Has ot made a decision of leaving iraq. David derek, nice to see you, you look, so tensions, at a lot of the headlines that have come out globally the last hours, tensions have ased somewhat, have they, though . Derek you know, david, i dont think that they have overall. That the last overnight, the overnight period probably when youre waking up in asia morning was very confusing picture because there was a contradictory sway. One of the things that we saw was a letter that was going out that the rted to say u. S. Was ready to remove its say we respect your sovereign decision, hold on and wait a second. Letter was a draft that shouldnt have been sent. It was poorly worded, et cetera, wasnt meant for consumption, pulling out. Not i understand if people are confused about it. To know. Hat you need there is a three ship amphibious is moving into the percentage gulf. It was in the mediterranean, it persian gulf. E that is a u. S. Move toward. There were hundreds of thousands of iranians out in the streets protesting and marking the end life of general soleimani. And so that is something that know. Eed to the threat on iran is still operative. Retaliate ares to still on operative and President Trumps threat to sanction iraq if it kicks the u. S. Forces out and doesnt reimburse the u. S. The cost of its military actions there is still operative. All of that stuff is still operative. Kind we have heard this of global call for calm now from the likes of south korea was the latest to actually chime in on this debate. Do you see any type of nation a more assertive role in this dispute . I do see a lot of nations basically saying, dont go further. An eye for an eye leaves the whole world blind. Developingthink, the line that you see all across the world from allies like bories all the way to south korea to china, et cetera. So i think you are seeing people of the u. S. And iran both basically saying, folks, leave it here. Whether they will, i mean thats the usly thats question. David and we will update this conversation. Derek, thank you so much, well bring you back on once we do have more developments out of this story. Lets bring in out of sydney, strategist to talk, eleanor, nice to see you, happy new year. The do you think, do markets need this to take profits out of the manic that we had . Eleanor well, certainly it to ed that positive start the trading year and clearly given how stretched valuations q4 runup, its really seen that markets were sort of primed for a little bit pullback. Thats obviously what we have seen and feared. Were cautious towards positioning this as being a more last riskoff er event. Clearly there is a myriad of uncertainty that still remain respect to irans potential retaliation and that could subdue y continue to Risk Appetite until we have more clarity on that situation and i hink, also, given that this sort of heightened geopolitical risk environment is really the to whats been driving markets throughout q4 of last year, you are going to bit hat there is a little more of a tendency toward volatility and markets are going little bit more headline driven, but really were not xpecting this to be a broad move towards sort of risk off, i best in either sides interest to really see this escalation ramp up and when we at irans retaliation, the onus of the probability lies fact that they probably need to do something. Were unsure as to what that its probably t going to be something that, i sort of ignites their credibility but also doesnt insight a huge reaction from the u. S. Side as well. Yvonne you talk about, everyone has been talking about just the its balance sheet, Central Banks across the globe to suppress market volatility. Think that is essentially is enough to offset any kind of risk we see out there these days . Eleanor its certainly going to big driver throughout 2020. Were sort of looking at markets i guess throughout the next year we do see a picture where geopolitical risk can hit markets. Increasing got populism, nationalism, going on across the globe. Buffa buffeted by cyclical hea banks havehe central shown by sort of word and deed that they are more than willing step in and cave to the demands. Liquidity thats really what is driving sentiment at the moment. Of ee for the remainder 2020, were probably looking at year, whatly positive can you say almost after 30 returns in 2019, you have to expect a little it less throughout 2020, but certainly mid Single Digits returns could be on the cards as see the Central Banks continue to stay on the idelines and provide ample liquidity and really fuel investors mentality of the fact just haveentral banks their backs. Until we see, i guess, a shift then rom that mentality, were going to see buyers step correct. Valuations we have the continuing low yield environment as well. Encourages risk seeking behavior and investors sitting on the sidelines with ample of cash to step in also. More from you , and bring you back to the live with es out of hong kong the chief executive speaking here. Talk about the economy now and deal with ent is to the grim economic challenges of talking about e landlord rents expected to go own as they deal with this retail and Tourism Industry that has been very much weighed down y nearly seven months of protests. You also mention about monitoring what is going on with new lisa mona cases as well, ruling out that it is anything like sars, but something theyre watching out for. Were still ahead here, moving the conversation to theme of 5g, a big this year. Were going to ask if the stock call, were talking china mobile after swamping last year. Lee joins us shortly. This is bloomberg. G. David welcome back to the program, so taiwan, just a reports, trade numbers ater today and the economists see a second recovery. Year. Over 3 from last you look at the chart, the blue line is taiwan and the hope is become a second economy after south korea to just not data but also provide further proof of a udding recovery across the region as the chinese economy stabilizes. Eleanorstill with us is who joins us from sydney. Ou were mentioning about these green shoots and a bit skeptical of the data so far. Why do you think that there is a around this cism right now and what are you questioning when it comes to the kind of trend growth . Eleanor well, i think certainly equity markets, we have pretty much seen that entire growth slowdown priced out. If we do see any continuing weakness in the data, we could see markets really of a drawdown. T i think when you look at the we continue to see that there is these cyclical are going to t buffet growth in the year ahead. We have the ongoing depression sector. Anufacturing we have also got these sort of geopolitical tensions as well on are going to weigh growth. The most recent flareup in the middle east is only an example that. I think more broadly and sort of zooming in maybe on the u. S. We look at the u. S. , i think were particularly expecting that the labor market to lose to continue momentum over the year ahead and thats really going to put, i little bit of a dent in this strong consumer narrative has really been the white knight holding up the u. S. Economy to date. 2019, in 10 of the u. S. Largest states, the labor arket was starting to deteroriate. We have also started to see Unemployment Insurance claims rise. Also seen as well over the last three or so months that startingales growth is to decline. I guess barring novembers jobs data, we are pretty much primed for an ongoing ahead ration in the year there. David if you had, i know diversified is always the way to to pick one asset you would hold against that backdrop, what would that be . Eleanor well, i think, yes, diversification is always key, a portfolio that ncludes equities, u. S. Treasuries, global, gold as and the king at 2020 backdrop where were potentially expecting a transient increase inflation that Central Banks will be able to look past, but a a one off increase in food prices, especially due seeingimpacts that were from the extreme weather events on climate change, that potentially means that particularly d gold is going to be a good safe aven against that sort of scenario. We also still continue to see in this easy policy monitor tray mode that will support gold prices. Had to pick one asset, gold would be the way to go. Yvonne you mention about banks, you have been watching very closely, the moves they could make this year. The aussie has been selling say to the right call, why . Eleanor yes, certainly i think Australian Dollar is on borrowed time at the moment, were expecting them to continue with easing the trajectory throughout the year ahead. If we look at the consumption outlook, it remains under pressure. He Australian Consumer is heavily overleveraged and now choosing to increase savings increase n Discretionary Spending and that is despite house prices being on again. Se we have the private sector in recession and all of this is impact ofconsider the the raging bush fires that we have seen ongoing since last year. That certainly is going to have weight on the Tourism Industry, cafes, restaurants, also construction as well and i think its something that they have to consider. We thought the i. B. A. Would be easing again in february. His is one thing that is going to push their hand further. We are certainly expecting a cut theebruary and further down year as well. In 10 seconds, year . Om the i. B. A. This eleanor sorry . Q. E. eleanor this year, no, into 2021, it becomes a far greater probability. Things with rose lenses, q. E. Will remain part of the conversation with deterioration. So much, great stuff, please take care, of sydney forr there in us as well. E are counting down, not just to the close over in japan and re counting down launch 60 cex set to orbit, t satellites into the falcon 9 rocket just taking off, the pictures that go through here, it certainly has of the year that we have seen spacex launch one orbit, well see how things go here. Link the third star satellite deployment mission which youre look at there. Continue to watch this here. Go, as they say its on your bloomberg terminals as well. Talk about this later, a nice segue. He is in usk story, shanghai talking about tesla, the made in china as well. Well leave these live pictures as we approach the atmosphere and then well make where we ere and see go. To ne elon musk is set attend the ceremony. Solina wang is outside factory in shanghai. Have we seen elon musk . He shown up yet . Solina we are awaiting his arrival. There have been some videos on social media arriving in shanghai. Have yet to see him come to drive,ctory, a 90minute a remote location. We are expecting him to arrive and high level government officials, this is for the pomp model 3smstance of the to actual customers. We have seen the deliveries to december employees on 30. The fact that high government officials are going to be here is significant. Support has been critical to the fast rampup, the smooth process of this building. In fact, its taken just a year from tesla breaking ground to to more than 1,000 cars being assembled there per week. Model 3s are esla going to be exempt from a local urchase tax in china and qualifying for government subsidies. The fact that musk himself is underscores how important this factory is in become teslas plans to a truly global carmaker. Factorybefore that this n shanghai will serve as a template for future global facilities. In will have a factory germany after this. Yvonne talk about the challenges in china, though, we is that the competition heating up and the government subsidies,miting the sales have been slowing down for months. Hat are the prime priorities then for tesla . Olina thats certainly going to be a challenge, major challenge, tesla has announced hey are going to be cutting prices 9 . That on top of the government local es on top of that, urchase Tax Exemption will put tesla in the same price bracket, you have local challengers, you of audi, b. M. W. , Mercedes Benz that are all new electric vehicles. You have the challenges that the third annual decline of declining vehicle, china. Ehicle sales in electric vehicles comprise 5 of the market, but the sales had dramatically as of government subsidies have been pulled back. That tesla ta shows could do quite well, in fact, the tesla registrations in in china jumped 14 fold to more than 5,000. Priorities are certainly going to be to capture as much as that market as they can. Some of the projections have been pretty wideranging, at the end, only 21,000 could be sold this year of the made in based onel 3s, that is the history of production delays as the la has as well fact that the macroeconomic issues are very difficult. On the high end, some are ptimistic, they could sell 100,000 vehicles or more in china. David great stuff and she is watch there musk n a very windy, as you can see shanghai. From one musk company to another go to live pictures 9. The falcon its the Third Mission since 2019. Some uld be landing at point very soon as well. Reading a couple of things here as well. Will be landing the falcon 9 first stage with the i still love you drone ocean, 45the atlantic minutes after liftoff. Vonne 60 new star link satellites are going to be joining this mega constellation here today. That, of course, live, well bring you those live of ures there, yeah, a lot questions about how many more well see, this could be a busy musk, this is the first of the year. We are continuing to watch this land. In the meantime, lets watch the action when it comes to your markets. Were watching your m. M. R. Function on the terminal. In terms of themes, you are seeing gold miners and a ot of the oil stocks that we saw yesterday that were rising are now kind of retreating. 3. 5 , also down close to 4 . Side, though, some we saw yesterday in south korea, some pretty decent gains and the cosmetics are up close to 6. 5 today. A little bit of a mirror image of what we saw yesterday. Things to uple of note as well, you dont see the tocks here, but a lot of big bank of hong kong, gilly a and upgrade on on sales grading both outlooks. The japanese lunch break, not quite as high as where i would imagine the rocket is already right now. In fact, were leaving you with those shots. Go. Re you well leave you with the story and then look at the spaceship. The live pics up. How high are we now . Kilometers right now, kilometers g 17,000 an hour as well. To watch that e story and well get to the rest of your top stories today. On the other side of this break. This is bloomberg. Welcome back to the program. We are still looking up we are not. My producer just told me we lost the live shot. I am not just cranking my neck, though i did not sleep well last night. The spacex launch should happen any time. In the meantime, keep it here on earth and keep it real. In new york su keenan is there. We will start with the latest in iran. Thousands packed iran and other theian cities to mourn killing of top general Qasem Soleimani by the u. S. Military. Ayatollah khamenei led the service and said the generals death would be avenged. Soleimani was killed in baghdad in the u. S. As it currently has andlans to move out of iraq that the iraqi people still won a u. S. Presence in the country. Elections in the capital new delhi february 8. Rising unemployment and mass protests against prime ministers Narendra Modis agenda. Protests against the prestigious delhi university. They blamed the violence on a group linked to the government. They say it was a clash between rival students. More than 130 bushfires rage across much of southeastern australia with towns and cities suffering record high levels of air pollution. At least 135 separate fires are burning. Animalsn half a blion have been killed. Weather conditions are set to worsen in the coming days. 2 has becomeen the highest grossing animated film ever, amassing more than 1. 3