Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

Overspeed. The communist party wants greater sustainability. The ecb hints that a more stimulus is coming as governments impose new lockdowns. Seize until the crisis dies down. Breaking news out of south korea, we are getting the september numbers for Industrial Production, a rebound of 5. 4 . This is a rebound from a can fraction in the previous period. We are seeing revisions upwards for the previous month of august. This is a huge beat of estimates. Growth, on year number, a jump of 8 , really rebounding after six months of contraction for Industrial Production. That werising given have seen export numbers rising for the first time in seven months. We have seen more positive sentiment on external demand. Now we have Industrial Production numbers in south korea beating estimates. Just had the markets open in australia. At amp, one of the first stocks trading, higher by more than 20 . This is after they confirmed they have received a conditional proposal from u. S. Based areas, not enough to send the stop surging, up 21 . We are continuing to see weakness for the aussie dollar, a shade above . 70 u. S. , currently trading flats. Flat. Weve got a look at nikkei futures as well. Weaker by 0. 2 . The yen Holding Steady. Weaken. Ntinuing to weaker. Also trading that u. S. Markets putting on their best day since october 12. Shery we are seeing put the of action after the bell in the u. S. With earnings from big tech. Apple, amazon, google, facebook all reporting a beat but apple retreating on iphone sales missing consensus. Amazons cloud unit worrying investors. Is a lot that we need to get through but lets start with apple. Sales in china fell 29 . This is what tim cook had to say. China is the reason it was heavily impacted by the absence of the new iphones during the september quarter. Still, we beat our internal expectations in the region, roving noniphone revenue strong, double digits, and iphone customer demand grew through midseptember. The mostina is one of important regions. How bad is this . It is more a story of consumers waiting for the next generation. 12 wasnch of the iphone later than apple normally launches its annual generation of smartphones. China is morek in advanced than here in the United States. There is that element. Beyond that, we saw incredible growth in apple other business units. Apples other business units. If you look at what investors are saying on the call, and in an interview, the outlook for the fiscal first quarter, including in china, is very promising. They think thou phone they think the iphone 12 demand will be strong. They did not give us a specific outlook, but they think it will do well and in china, die for 12 promax, the biggest screen size theiphone pro 12 max iphone 12 pro max, the biggest screen size. Faster, the promise of speeds, you unlock the promise of the services. By all accounts, they did grow in the quarter. Paul you did mention wearables, it is becoming one of the fastestgrowing categories. How important is that becoming . Is a different segment for apple. Made in theple quarter, 75 were from firsttime buyers. You look at where and how apple is selling wearables and they have extended their reach. It is tied to services because under apple watch, you can do more than just look at the time. It is a new segment for them, it is a slightly lower price point than the iphone and his new generation of iphones, average selling prices coming up. It makes products more accessible for consumers. Shery we had amazon as well and it was not surprising that they are doing well but what was eyecatching was that they surpassed the one million employee market. Things are getting expensive for amazon. Spend 4going to billion on covid protections at Fulfillment Centers in the concern from investors and one reason why shares are down, impact on profits. The revenue number for the coming quarter is going to be i watering. Amazon is having to spend money to keep up with itself. It has invested in fulfillment and logistics to make sure it can keep up with demand. In terms of the cloud unit, which is the market leader, revenue grew 29 . Youre seeing margins slightly eroded. What theory is amazon is having to spend money to keep competitive. They compete with the likes of google at oracle. The street may have been looking for more in amazon, but again, they continue to benefit from the shift in Consumer Behavior have seen three the pandemic. Shery when it comes to the after our action, alphabetic seems to be the only bright spots. Which is a little bit of a surprise. The focus has been on whether revenues have been boosted because of behaviors during the pandemic. Broadly speaking, advertisers have returned to digital platforms. That was reflected in the growth we saw in twitter and facebook and in googles case, they seemed to capitalize that parent there are questions capitalize that. There were questions about antitrust. A wrapup of a very big day of tech earnings. We will discuss those more later including with bob odonnell. Shery lets get you to the first word headlines. Coronavirus numbers continue to rise in the u. S. With new daily cases in the york the highest since may and the record surge in the midwest, a new report says the death rate for covid19 is higher in upper Income Countries which tend to have elderly populations. Imperial College London says richer nationsfatality rates is more than four times that of porter countries. Tomany saying they failed move fast enough on the coronavirus as a second lockdown becomes clear. Angela merkel says political reality stopped governments from imposing tight restrictions and the leaders must learn the lesson and act more quickly. Germany and france are under a new lockdown in that u. K. Is considering the same. The European Central bank has offered a hint that new stimulus is coming as governments impose new lockdown. The Ecb Governing Council is holding its program through at least next june but says it wont halt support until the crisis dies down. The council adds that new forecasts in december will reveal plans for more market support. Those were the first word headlines. China has unveiled the first glimpse of its plans for the next five years promising to build a technological powerhouse and advertising quality growth overspeed. Our coacreage joins us from beijing. Coanchor joins us from beijing. What else do we know at this stage . A few details, broad outlines about this plan. We are hoping to get specifics in the next few days. The plan will be published in march. This is a consequential plan that is being worked up in beijing. Even the details that we have at this stage are important. Debakey standouts that we got Late Afternoon yesterday, one is that china will focus on more sustainable growth. It is the quality rather than the speed of the growth that is the emphasis. They did not set themselves a growth targets. That does not mean they are not guiding growth higher, they are just being more subtle about it. No growth target at this stage. In terms of technology, another key area, china planning to be a technological powerhouse. What they have done is elevated their attempts to be selfreliant in certain technologies into what they call a National Strategic pillar. That is going to be significant in terms of how local fundingnts channel towards these key technologies along with the private sector. Part of this is chips and the reliance on chips and china has felt the blow of the u. S. When they restricted access to some of these semiconductors and other products. This is part of the self or. Longerterm, they have mapped out a vision to become a leader in innovation and make breakthroughs in technology. Shery really reflecting tensions with the u. S. , this longterm vision for themselves. Tom indeed. There was a nod to president trumps policy, they talked about the complicated international situation. In terms of these restrictions imposed by the United States on some of these technologies, that is central to fueling this push for selfreliance but also ties into this circulation policy that remains broad be ready essentially remains broad. Essentially, it is about channeling some of the production you see in the mainland towards chinese consumers, insulating the economy to some extent. More insulating than isolating because they say they will continue to open up markets. We got more detail in terms of their aims around Green Technology in climates, they want green lifestyles. They talked about trying to defense tose tie economic developments. Is a strokes, but it hugely consequential plan at specifics we are hoping to get over the next few days. Shery Tom Mackenzie there in beijing. There is more analysis on the outcome of chinas plan coming up. An economist gives us his take just after 1 00 sydney time. Are days away from the u. S. President ial election, we speak with ahead of Public Policy about what changes to expect on the fiscal fronts. This is bloomberg. Shery we are five days from the election. It as of today, more than 70 Million People have cast ballots. Most states have blowed path their early vote counts from 2016. Blown past their early vote counts from 2016. Libby, always great to have you without. Us. You with how much can we tell what is going to happen on november 3 . Only thing we can definitively say about the early vote is that the electorate seems to be very engaged. Most numbers are 80 million folks have voted early, that is around 58 of those who turned out in 2016 have already cast a ballots. This electorate seems to be engaged in some states, it is near 100 of the 2016 turnouts. You are likely to see the turnout exceeds what we saw in 2016. Most clearlycan extrapolate is that people seem to be engaged, voter turnout could likely be higher that in 2016. Fromi one our clients extrapolating too much, people made that mistake in 2016, that democrats do have an advantage in early votes but they usually do. We have to wait until all the ballots are counted to conclude anything definitive. It does seem people are engaged. Shery what do you lay out for your clients as a best Case Scenario when it comes to the white house in control of congress . What would that mean in terms of policy . Where are we going to see the biggest changes, were staying status quo . For staying status quo . Libby the most likely outcomes either joe biden wins the white house and democrats take the senate, or a status quo election, Republicancontrolled Senate and donald trump wins. Big policy differences depending on those outcomes. At this point, if you look at all the data, national votes, swing states, demographic data, things we are looking at, all point in favor of joe biden. Voters in undecided 2020 versus 2016. Days, some things can change. It does seem that things are pointing in that direction. Under a democratic sweep, we should expect more government spending, that will come in the form of a covid relief bill, maybe an infrastructure bill, then potentially higher taxes. This is an important point, something we are trying to emphasize, even if democrats suite washington, the majority in the senate will be very narrow, and that may mean fiscal stimulus may take longer to pass and may be smaller in scope than what the market expects. It is not a binary outcome just because you control the senate. You still need to work on a bipartisan basis and still need 60 votes. The market is being a little productive in terms of their thinking about it. Scenarios, on your which sectors are best positioned . Libby under a democratic sweep, it is going to be in line with what the priorities that the Joe Biden Campaign has weighed out and we know climate is going to be a priority from they revelatory and legislative perspective. Renewable energy will likely do well. Under aucture is likely Joe Biden Administration as well. Well,nk those will do both because democrats prioritize funding for states and cities and the expectation that there will be higher taxes, probably help with if valuations as well. Sectors that we think are likely to do the best under a Joe Biden Administration, and a status quo election, status quo policy outcomes. Maybe you see a trump and pelosi cutting a deal on infrastructure but outside of that, we expect the status quo in terms of the factors that have done well throughout the Trump Administration that will continue to do well if he is reelected. A third scenario, that is the possibility of a contested outcome. There couldica says be a 20 slide of u. S. Equities possible. Absolutely, would be a big drag in terms of risk appetite, a big source of market volatility for sure. I have to say, we think it is unlikely. Clarify is trying to a delayed election outcome by a day or two, which is possible given the high volume of mailin voting, the process of counting those votes, a delayed outcome is different from a disputed outcome and we think the base case is you may very well know the victor of the white house the day after the election if not the election day itself. In some of these important swing states, likely to report Election Outcomes on election night, including florida. Goes for joe biden, you can expect the market to react as if it is a joe biden win. Soonerl probably know than later in terms of the outcome. A disputed outcome is a possibility but we dont think it is probable. Shery quickly, what are you expecting in terms of trade policy . We have had to deal with president trumps tariffs for the past few years. What are we going to see there . Libby you and i have talked about this over the Trump Administration. The interesting thing on china policy is i dont think the strategic objectives are bound china will change very much as it relates to the Joe Biden Administration. A more it will still be hardline approach, i think the tactics will be different. I do not think it will be trade policy by tweet anymore, it will be a more predictable policy. Human rights bill likely be more prioritized. Well likely be more prioritized. Likely be more prioritized. Base case is not much change on the china policy as it relates to a joe biden win versus a trump win. Cantrill, thanks for joining us today. The washington stimulus blame game is escalating. Steve mnuchin accuses nancy pelosi of holding up a new relief bill as she demanded a response from certain sticking points. Nancy pelosi reiterated the need for more stimulus even as the economy expanded by a record in the Third Quarter. We need the stimulus even more so. The reason why we had a better Second Quarter better Third Quarter is because what we did in the cares act and the subsequent legislation for ppp that put money into the economy. Now people that is going to wear off and we need another infusion. It is not a question of we dont need it, it is a question of it works and we needed more. Happened inhat what the Second Quarter was horrible, you know that. We have come part of the way back at we have to keep on a path of Going Forward rather than sliding back by not having injection of funds into the economy. You have such an important say in the economy and how it is governed. How do you make sense of the numbers . The gdp number came back strong, the stock market has been doing fairly well over the past few months. We have 11 Million People still unemployed, we have stories of people having difficulties. We have two economies in this country . Staggeringer that is is we have more people onmployed and more people unemployment than any time in history. We know that the fed is shoring up the market so that the stock market can do well. I dont complain about that, i what the market to duval to do well. Just because we have come back does not negate the fact that we are 1900 points down for the past four days. The fed is reacting to the fact that the virus is spreading. The markets are reacting to the fact that the virus is spreading. It is reacting to the fact that there is no agreement to inject the forces necessary to support the likelihood and life of our democracy. We do need that once again. Right now, and we needed for state and local governments. Governments, the wall street journal said it is the biggest cash crisis since the great depression. All kinds of things people may brag about, an indicated saying this, but we have to wonder what it means in the lives of the American People and all the things we have in our legislation stimulate the economy. If you talk about unemployment insurance, food stamps, direct payments, all those things, earned income tax credits, they all our stimulants. People will spend because they , rather than what it does what trickle down to have 150 billion going to the wealthiest people. That is the discussion we are having. We are at a fork in the road because the path the president is taking us on has been deadly. People,ing 9 million nearly a quarter of a million dead from this, 8 million falling back into poverty because the cares money is running out. 17 million Children Food insecure, millions of families on the verge of eviction, the list goes on. Antivirus continues. We have to crush the virus to open the economy and open our schools. The president has taken us on a deadly path. We have to go down a different path. Shery nancy pelosi speaking to david westin. Amp, it isook at surging right now, two months after they confirmed they have a takeover approach. The deliberate preliminary talks, but amp has a market value of 3 billion. For bigback revenue tech investors, we will discuss. This is bloomberg. Some breaking news from japan, the jobless rates for the month of september, the ratio Holding Steady at 1. 03 percent, a decline from the 1. 04 in the month prior. The headline number, 3 , climbing a little. The Unemployment Rate had been edging up, some pressure on the Service Sector during covid19 restrictions. We are getting tokyos cpi numbers, a bigger contraction than expected, 0. 3 . The expectation was for 0. 1 . Cpi Holding Steady. The em holding reasonably steady. Getting futures for the nikkei trading out of singapore just beginning. That is showing a decline of 0. 2 . Australia, higher by 0. 3 herein 0. 3 . Their bestes having day since october 12. There was plenty of action after the bell in new york with backtoback earnings from big Tech Companies. Apple, amazon, google, facebook reported a beach. Iphone demand missed consensus. Amazons cloud unit is worrying investors. We are joined by bob odonnell. I want to start with apple, mixed bag here, we did not get a revenue forecast, that week iphone revenue from china, ipod revenue beating. What are your takeaways . Robert i think the key issue is that they did not give guidance. It is a little odd because if you listen during the call, they forecasted, we are going to see better growth for the iphone 12 than last year and other product categories were going to be better by 10 . They almost forecasted it anyway and did not give guidance, which strikes me as audit. As odd. In china, 5g is a musthave. Apple has been a little late and once people do a 5g iphone was coming, sales dropped off and people wanted that iphone 12. I think you are going to see good numbers in china. There is still uncertainty that come into play. There can be other factors that may have let apple do not give that guidance. Peopleue is that is what are wondering about. We did see strong macro and that is reflective in other pc makers. The pc has become the key device. I think this was the fourth time we have not had holiday guidance from apple for the holiday quarter. Maybe we have to get you to do that. On thosebit of slack iphone 12 numbers because we only had five days of data, are we on the cusp of Something Special Going Forward . Theyt even apple says think it will be better than last year but they did not say they think it will be 10 or higher better than last year, with they did say for some other categories. There is a lot of pentup demand in parts of the world for 5g. It is an important technology, people see it as the future. They are like, if im going to get a new iphone, i might as well get one that has 5g. Not as important for most people in their daytoday lives. Very important for our daytoday lives, at least for me, has been amazon and getting our daily goodies. They did pretty well. Very impressive how much they are going to start hiring for the Holiday Season. At the amazonok numbers, people are saying, aws did not do as well. Aws is already a huge number so 29 growth is still impressive. The retail side was ignored. Everybody is dependent these days on online sales in amazon is getting a big part of that. What is interesting about the sales is that small and medium businesses, the third parties that sell to amazon had their biggest numbers. While there has been concerned about what amazon does to those businesses, it is providing some opportunities. It is also providing opportunities in terms of employments. The are going to hire 100,000 people for the holidays, on top of the 400,000 they have hired this year. I think i got my numbers wrong on that. Hundreds of thousands earlier this year. With that reflects is this shift towards how people are looking at Tech Companies being a bigger part of the employment in the u. S. And around the world. 175,000 hired earlier this year. They have received criticism as well for not keeping employees safe. Given the pandemic in the costs are rising, they have to open new warehouses as well, is that going to eat into the bottom line . Robert i think it is. They acknowledged that in their forecast. They had a huge range and they said there could be up to 4 billion in covid costs and last quarter, they said up to 2 billion. Clearly, they are concerned. I think the company is taking steps on things. It is a tough thing to do. They have over one million employees now. A huge percentage work in these warehouses or the just ask. Process toough manage and they are getting criticism, i think they are also taking steps to make it better. We have a lot to get through so i want to move onto alphabets. Returning to growth in the Third Quarter. How wellncouraged by Digital Advertising is holding up . Robert i am. We saw that with facebook and twitter as well. They also saw strong advertising. The Digital Advertising market is coming back, a good sign for the economy overall. Google is a big piece of that. In the case of google, like with amazon, it is Cloud Computing that is important. The google Cloud Platform did extremely well. They are the number three player guide microsoft and amazon but they are growing rapidly. Staff,e high every sales they are getting google cloud out into enterprises who are in the process of moving a lot of their computing work to the cloud and they can take advantage of that. Facebook faith that advertiser boycott, it seems to be impervious of that, of pretty much anything. You impressed by this performance . Robert i am. There was a lot a political advertising in this last quarter on facebook that facebook benefited from probably more than any other platform. The concerning issues are two. One, the fact that the number of u. S. Users went down, so there is a sense of saturation of the total numbers. The other thing is there is concerns about what happens to facebook. I think they are the most vulnerable to this debate we are having in the u. S. Regarding our these platforms publishing platforms and what does that mean . I think there is uncertainty as well as they look forward and i think that is what the market is varied about. Shery tell us about the tech hearings. There was a lot a political grandstanding but i did not understand what they plan to do in terms of regulations. Robert that is the whole point. There was nothing of real value being done. It was an attempt by the republicans to argue the fact that they are being discriminated against even though there has been studies done that show that republican posts get more traffic than democratic posts. The problem that you have is it is a come located issue. A number of people recognize, there are challenges. These are publishing platforms. This is where people are getting information and they need to be treated differently and thought of differently, but making sense of that, how that works, digging into the details of how the sub elements of googles Advertising Sales network works, where there could be questions, those are tough issues. The senators were not ready to address them. Shery always great talking to you, thank you. We will have more on tech earnings later with gene munster, he joins at 9 00 a. M. In hong kong, that is 12 00 p. M. In sydney. We have an alerts, the New York Stock Exchange is suspending global hurts shares have been halted pending news. Hurts global had more information to borrow 1. 7 billion to help a reorganizing bankruptcy and we have heard earlier today that they want permission to borrow 1. 7 billion to help it reorganize. Lets turn to Karina Mitchell for the first word headlines. Released partsas of its fiveyear plan, emphasizing growth over speed. Initial details stressed the need for sustainability in a robust method markets. The plan elevates tech reliance to a National Pillar but there is no guidance on the desired pace of growth yet. An ipo continued to make headlines with demand attracting more than 875 share offers. The subscription is equivalent to 8. 8 trillion, a record for the market. Stock trading accounts for the online offer have topped 5 million, a record for shanghai stock markets. Thailand is revising its Growth Outlook say the economy will shrink by less than previously thought as leave measures alleviate the impact of the pandemic. The government sees a contraction of 7. 7 this year, down from a decline of 8. 5 forecast earlier. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Over to you. Come, hundreds of billions of jobs have been lost, with women and minorities disproportionately affected. We will discuss the workforce next with the head of the International Labor organization. This is bloomberg. China Construction Bank has a slew of reports from chinese laborers which wraps today with results from icbc, think of china, and bank of communications. Chief our chief north asia correspondent joins us. What did the results tell us about the health of chinas lenders . Lenders,big state known as policy lenders, are at the mercy of government initiatives and when things are going well, they often benefit from policy but when things are going badly, as it did throughout the first half of the year as china suffered with the pandemic, the banks were ordered by the banking regulator to givery commission, preferential treatment, Interest Rates to businesses and rollover loans, they basically take one for the team in listing them to support the economy through the pandemic. First half results for these resultsere quite were bad, bad loans were bad, they were higher. With the chinese economy recovering come all the government is starting to ease pressure on the banks and we should start seeing better but not stellar results in this Third Quarter results that we saw in the Second Quarter. The china Construction Bank, the number two lender in china, reflects that. Net income falling 4. 1 in the Third Quarter. Credit losses continue to rise in the fallout on bid the fallout from the pandemic. The fallout from the pandemic. Provisions, if you are support be enlisted to the economy through the bad times, you have to pay the piper. Loan loss provisions grew 42 yearoveryear. That being said, these shares did have a bit of a ralley in the beginning of september and into the beginning of october. It only lasted a week or two but the financials sinking to a sixmonth low in september before that rally. One analyst expecting chinese things to report healthy earnings over the next two to three quarters as they rebound, propelling shares higher by 60 . They may be undervalued, but there are some headwinds. Buyer beware. Shery what about today, we have other big banks with results, including the largest icbc . Stephen thats right. Icbc headlines, the big list including Agricultural Bank of china, think of china hong kong, as well as the bank of communications. Lets look at icbc. 90 19 but it is down year to date. It may be able to contain loan charges in the third and Fourth Quarter as the regulator outlined a minute ago. Scaling back restrictions. Load loss risks persist, revenue , problem loanse rising 12. 5 in the first half. The consensus is for the full year two profit to fall 8. 2 . For the fullyear profit to fall 8. 2 , which may be too conservative. More problem loans may rise from s poverty relief lending. Agbank has an extensive presence across rural china, which has been hit as well. These poverty relief lending in the first half of the year, those are going to come home to boost. Bank of china earnings remain challenged by bad loans, similar down some 30 , year to date. Maybe the Third Quarter was turning the corner because of the restrictions from the regulator are starting to be eased, but they have to pay the piper on those bad loans from the first half. Shery we will be watching. We will continue to assess those results from chinese thanks later on daybreak asia. Spotlightties in the as countries impose fresh locked down to write in covid19 infections. The International Labor Organization Says 340 5 million fulltime jobs were lost in the Third Quarter and that was an improvement on the quarter before. Women and my noted to make up the bulk of the workforce are being disproportionately affected. Guy ryder how to balance economic concerns with Worker Health and safety. Be made is no choice to between life and livelihoods. If we dont solve the pandemic, the health emergency, we are not going to address the social crisis either. Term, decisione makers have been asked every day to work out how to balance the health and protection of populations with economic and social objectives. France, germany, policymakers are trying to balance these things. Cutting one no health and the safety of working people. It is a moral issue but it is also practical because unless you get this pandemic under control, you are not going to solve the jobs problem. If we did not get the second wave, our economic circumstances would be better. Recently, labor unions have filed a complaint against the Trump Administration for compelling them to keep some industries at risk like open. Cking what is the right balance to strike . Absolutely no be justification for requiring people to go back to work in unsafe conditions. The meatpacking industry was a special case. We know slaughterhouses are dangerous. This is where the virus prospers. We have to find ways to make sure that when we require people to go back to work, it is in conditions of safety. You dont have to shut down industries because they are dangerous, you have to provide the conditions in those industries to go to work safely. Health care is a similar proposition. Shery the pandemic has disproportionately hit minorities and women. Impact beg will this on horizontal inequalities . Guy we are going to come out of this pandemic, if we can envision that moment, in a world which is much more unequal there at it is one of unequal. Beingare already disadvantaged before the pandemic but they are being ejected from jobs more quickly than their male counterparts. They are concentrated in hard hit sectors, but also there are preferences involved in this. Women go first. For some of us who thought that a move towards home working methods would enable women to reconcile private and professional objectives more easily, im afraid the evidence is that when people are working from home, women have to accumulate both private care was possibilitys and professional responsibilities even more than they previously did. Instead of Going Forward, we are going backwards. Shery female Labor Participation has traditionally been low across asia. What impact are you seeing from covid19 on the female workforce in the region . Guy you have to break down the region a little bets. Where participation is really low is in south asia. It is down to 22 , the lowest in the world. There are two things happening. In those economies of south asia, women are concentrated in the informal economy. The informal economy has been devastated. No social protection, people either go to work and risk their lives stop working but cant feed their families. Asia where we of have evidence before us, it is clear, im taking of japan, south korea, it is clear that womens unemployment is rising more quickly than that of men in the last point with women in large proportion of women in many countries are involved in the Garment Industry in southeast asia. Complex Global Supply chains and they have suffered badly because the retailers in the United States and rep have stopped and rub have stopped orders and orders. Ave stopped im sorry to repeat the points, women have been on the sharp end of the problem. International Labor Organization director general, guy ryder. Breaking news out of japan, industrial numbers for september rising a 4 month on month, beating expectations, a rebound from four months of losses. Current chip exports helping the numbers. This is bloomberg. Check of the latest headlines. An australian Wealth Managers as it has received a takeover approach from u. S. Private equity firm, amp says discussions are at a preliminary stage. There has been no indication of the value of the business. Do its globalns itsforce plans to slash global workforce. Shares jumped as much as 5 . Netflix is raising Monthly Subscription fees as the virus keeps viewers in front of the screens be ready more in a moment. This is bloomberg. Its moving day. And while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. It only takes about a minute. Wait, a minute . But what have you been doing for the last two hours . Delegating . Oh, good one. Move your Xfinity Services without breaking a sweat. Now thats simple, easy, awesome. Xfinity makes moving easy. Go online to transfer your services in about a minute. Get started today. Shery welcome to daybreak asia. Im shery ahn. Yousef i am a part Ima Paul Allen in sydney. Asian markets have just opened for trade. Caps slideus as mega on wall street. Apple suppliers under pressure as iphone sales miss and revenue plunges in china. China releases the top lines of his fiveyear plan, promising to build a tech powerhouse and emphasize quality growth over speed. Selfreliance is now the strategic National Pillar. Sparked. Or frenzy brokers in hong kong said the mega ipo is generating unprecedented client interest. Some Automated Systems being overwhelmed. Shery japan and south korea coming online. The nikkei down a quarter of a percent. Most sectors in the red right now. Real estate and consumer stocks leading the decline. We will see if it changes, given we have more positive data on Industrial Outlook and jobless rate beating estimates. The japanese yen Holding Steady. We did get stocks ending higher in the u. S. We will see how the positive sentiment could translate into the asian markets. 4 . Ospi down pressure from the korean won for a second consecutive session. Losing ground right now. Increasing coronavirus cases and risk of sentiment around the world. Industrial production in south korea also beating estimates. Asx justaustralia, the holding on to very slender gains. The heavyweight sectors of materials and financials are propping things up right now. In financials, anp Wealth Management up by 20 . Nonbinding conditional proposal. We have the aussie dollar hanging on at . 70. Kiwi stocks have turned negative. Tom a big techs outlook chinas plan and thousands of Companies Reporting on the chinese mainland, we have a lot to digest in the final trading day of the week in asia. For some context, thats get over to mark cranfield. What is the read for asian stocks after the early selloff in nasdaq futures . That is always the negative read at the moment. Averages down about 1. 3 in asia on a friday. As you were discussing, some of the outlooks inditex companies in the Tech Companies in america are not as positive as traders were hoping, particularly in relation to china. Thats putting a dampening effect. The momentum of major tech stocks will have an impact across the region as the markets open. There has been such a big driver of equity markets around the world, since march in particular. Big tech stocks have played a huge role. Thats translated into Tech Companies outside. Samsung and the Major Chinese Tech Companies also huge drivers. So anything that sends shivers down the spine of american Tech Companies can be looked at in a similar way for asia. That will certainly be a concern. We were bound to have some shenanigans with equal rebalancing portfolios, maybe a rewaking in different places. It will be a hard day for china markets to digest the message from america and what they want to do, in terms of searching portfolios for the month ahead, which includes an election, as well. Shery we are also trying to digest chinas fiveyear plan meetings for meaning for asset. Will it have an impact on chinese assets . Certainly. Its an extension of something that started some years ago in china. It will affect all Asset Classes in china, to some extent. Quite likely, equities and the currency will be right at the forefront of that. We have seen the recognition that the chinese currency is playing a much bigger role in the global stage. China seems to be getting more confident about allowing the yuan to have more freedom to move. They are getting more comfortable with the idea of a strong yuan. This fiveyear plan certainly helps bolster the outlook for the currency. It puts china squarely at the leadership of the Tech Revolution around the world. All of those things point to the fact that they will probably try and keep a strong, stable yuan for a long time. In terms of equities, we see the development of huge Tech Companies out of china over the last few years. And we have another major statement for Chinese Companies coming out. The fiveyear plan endorses the fact they want to be seen as a world leader in this area. Certainly equities and the yuan will be at the forefront. People are looking at the Corporate Bond market. As more Companies Need to issue debt, the rating structure will come under scrutiny to see whether or not it justifies the amount of new issuers coming out of the country. All aspects of chinas security markets will be looked at as the plan developed. Shery mark cranfield, with his take on the markets. Follow more on this story and the days trading on our market mlive go. Lets turn to Karina Mitchell for the first word headlines. Coronavirus numbers continue rising in the u. S. Daily cases in new york the highest since may. A record surge in the midwest. A new report says the death rate is higher in upper Income Countries, which tend to have more elderly populations. Imperial College London says the richer nation fatality rate is more than four times that of countries. Germany is sending a wakeup call to eu leaders, saying they failed to move fast enough on the coronavirus as they call for their next lockdown. Angela merkel says political reality stopped governments from imposing tight restrictions, and leaders must learn a lesson and act more quickly. Germany and france are entering new lock downs. The u. K. Is considering the same. The European Central bank has offered a strong hand new stimulus is coming as the eu government proposed new virus lockdowns. The governing council is holding a Bond Buying Program through call for, but will not it until the coronavirus pandemic eases. They will not reveal plans for more Single Market reports. Ipogroups imminent dual continues to make headlines with the highrisk listing attracting more than 870 timeshares offers. The subscription is equivalent to 2. 8 trillion dollars. Thats a record for the asian market. Stock trading accounts for the online offer at 5 million, again a record. Global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Paul we will have more on ant later in the show, and the first day pop. Tightening regulations and the u. S. Election. Up next, in this big week for chinese banks, we look at how markets are reacting. This is bloomberg. Want to give you a quick check on some of these suppliers to apple that are trading in japan. Lg display, all of them like this right now. We did have apple at a bit of a miss on iphone revenues. Things not terribly good in the china sales of the iphone 12. Ipad revenue are beating. From applesuppliers declining in early trading. A section of japan up about 2 . China Construction Bank is reporting a 4 decline in their thirdquarter profit. For a bit of a discussion, we are joined by may yan. Chinae already had Construction Bank reporting today. We have four more of chinas big five due out. What do you expect to see, and what will it say for recovery in china post covid . Think it isted, we a relatively decent balance of results. Decline is a narrow decline from the first half of 10. 7 . It is an improvement. Bank alsosavings reported, which showed a thirdquarter Profit Growth of 13. 5 . Thats the strongest across the china bank space. Resultsal, large bank are better than the Regional Banks this season. Banksl expect other large to report today. Do focus a lot on the large banks. China has Something Like 4000 smaller Regional Banks, which account for a quarter of total assets. Not all of them are in terribly good shape. Do you think that lurking somewhere in there might be Chinas Lehman . Been ongoing for quite some time. Banks, people worry it can be a crack in the system. I think the recapitalization has been ongoing for many years. Year withlar, last the bank being taken over by the central bank and larger Regional Banks, as well. System has been restructuring them. Its expected to be ongoing. By ourcern highlighted the centralously is government, except for the last few banks, most of the responsibility have been recapitalizing the smaller banks. It has been on local governments. Resources arel , maybe theyined will have less resources to recover. So far, the Regional Bank situation has been under control. Shery banking stocks have rebounded almost 10 this much this month. Is it justified, given the record low valuations, or are they getting ahead of themselves . Thats a good question. Tradedks have been really low posted secondquarter earlys in late august and september. There wasuation base, a historical low at halftime price. Since then, the Earnings Guidance by the regulator has improved. Wasarlier, the guidance that they need a provisional watch. This years growth may be negative, in the first half it was 10 , second half could be worse. Since then, chinas economy has been recovering better than expected. Allowedre more now to report earnings, depending on their own operations. So we are seeing thirdquarter results come in more reflective of their underlying situation. And it is it marginally improving. Shery we have seen bond markets grow. We have the inclusion of international indices. How positive is it for banks . It is positive, particularly for large banks. Large banks are the funding providers. They do have a lot of andstments in bonds placement into other banks. That is an improvement on their net interest margin. We are seeing broad improvement. In thet stabilization thirdquarter results. Going forward, that will be the trend. It is positive for bank earnings. Shery may yan, great to have you on. Up next, solid Quarterly Earnings from americas biggest tech firms were not enough to keep investors from selling in the u. S. We have the details. This is bloomberg. Shery we are seeing broad downside when it comes to apple suppliers across asia after they reported a nearly 30 drop in sales in china. Mark gurman is on the line. Tim cook seemed optimistic about the market. What were your Key Takeaways . 29 annualpoint, decline in any region is not great. You compel it with being china, which is one of the most important markets for apple. The lowest revenue apple has reported in china since 2014. You know how the world looked six or seven years ago. My take away is i have no reason to believe apple is not telling the truth. They say it will be attributed to the iphone 12 delay, which was about one to two months, depending on the model you are looking to buy. And their numbers grew double digits. If it wasnt for the iphone delay, we would not be having this conversation. Paul the delay meant apple only has five days of data on sales of the iphone 12, as well. If you look ahead to the next quarter, is the picture rosier . I think the picture is going to be a bit rosier. I think they will do well in the holiday quarter. I think it will be strong. The guidance they are giving seems to be expecting iphone products to grow in revenue. They expect china to return to growth in the december quarter. But it is hard to ignore the fact that samsung reported very ofong yearoveryear sales their smartphones. Me, samsung, shall some of the other phone makers in china have been doing exceptionally well. Drop ine was a very big iphone sales in china this quarter because of the delay. Shery and there wasnt a forecast for the key holiday quarter. Is that concerning . No forecast, im not expecting them to ever give a forecast again. I would be surprised if they go back to that. It is not required, being so much uncertainty. The company is quick to pull data from their Earnings Report when things are not looking so hot. Iphone,pped reporting mac, and ipad unit sales about a year or two ago. So there might be companies that still have benefit to give forecasts, but we will see what happens. Gurman, thanks very much. Tumble aftern a hours, with analysts disappointed by Forward Guidance for a key sales metric. Merchandise and volume growth was forecast in low double digits, compared with 21 in the Third Quarter. Is stayingnt and ceo upbeat about the Holiday Season. Growth, 26 percent revenue growth, added active buyers to 180 3 million. We feel wellpositioned for the Holiday Season. Ebay is great in all kinds of economic times. When times are tough, they have great values. When times are well, people want to shift to ecommerce and come onto the site. We are pleased with what we are seeing. You think investors are not pleased for next quarter . We know we are not going to be locked in as much as we were in march, but how do you prove the growth you can hold onto and sustain . In such a dynamic environment, things are changing daily. We were going on our call yesterday as france was shutting down. Changes in germany. Theres a lot of moving parts with the system. But our strategy is right on. We are defending hard core business, we launched new verticals. After thisg 500 billion addressable market. Digits, lowsingle double digits, in terms of penetration. Theres a lot of opportunity on the go forward basis. I want to dig in on the not new in season. Its all looking at collectibles, refurbished goods, vintage watches, highend coffee machines. You talked about a phenomenal addressable market. How did you zero in on this . It has really been the core of ebay. Amazing values, amazing finds. We have so much opportunities and a right to win in that space. Its also 50 of our dmv and has growth potential. We are focused on a lot of specific areas. This quarter, we announced new experiences in watches, where we are authenticating any watches over 2000. Escrow over 2000. We are seeing great early results. While it took us months to build, weeks later, we put the same experience in sneakers. A huge great growing market for us. In sneakers, we will be authenticating every sneakers sold on the platform over 100, starting with top brands and growing to all sneakers. Its great about categories like that, is they bring on a younger consumer, gen z, millennial consumer, and they buy across the site. We see them buying in 10 different unique categories across the experience. Investing in the area where ebay is unique because of consumer selling, global footprint, we think we are on the right strategy. I know you spoke passionately before about the seller, your relationship with the seller, showing they keep coming back to your platform, you are making payments easier, how do you see the Holiday Season unfolding for the seller . How do you think the Holiday Season is for getting out packages . The average household has 4000 of items they could sell on ebay, and less event 20 is online. Its a big opportunity to bring in the consumer seller, the average people like you and i, selling on ebay. Now people are having to spend time at home, maybe they need more cash, so ebay is there for them. So we are trying to make the selling process easier. When a buyer comes on and tries selling, they become twice as valuable as a buyer, because they have tried both parts of the marketplace. We are leaning into consumer selling and making it a big focus. We have 19 million sellers on the platform. We are looking to continue to grow that. Ebays president and ceo. Heres a latest check of the Bloomberg Business flash headlines. The latest results from starbucks suggest the worst of the pandemic effects may have passed, with key markets in the u. S. And china edging closer to growth. Global samestore sales were down 9 in the Fourth Quarter. Better than the 12 estimated decline. Starbucks has seen falls for three consecutive quarters. It is struggling with being a place to hang out as people socially distance. Australian wealth manager amp surging after it said it received a takeover approach from aris management, and is in early talks. They said in a statement that discussions are at a very preliminary stage, and there is no certainty a deal will eventuate. Theres been no indication of the value of the bid. Amp has a market value of more billion. Playstation 5 is not in stores, but has already taken the fight to xbox in the online blackmarket. Thatd for ps5 is beating of xbox, with consumers prepared to pay extra. The rivals will formally launch their new products month, when global demand, especially in the u. S. , is at a record. Are the first major consul upgrades from sony and microsoft in seven years. Update on news out of australia. Queensland announces it is going to open its border to all of New South Wales on november 3, except sydney. Thats likely not going to go down well with the New South Wales state government. The creams and premier saying opening to sydney is too risky at this stage. On novemberill open 3. Shanghai Stock Exchange says ant groups upcoming listing is oversubscribed by more than 800 times. We will have more on that in a moment. This is bloomberg. Paul we are just getting data out of australia at the moment. Private sector credit for the month of september coming in as expected,. 10 increase, 2 growth on year. Ppi numbers for the Fourth Quarter,. 4 growth. Thats reversing the contraction in the Second Quarter. On year ppi is still contracting by. 4 . The aussie dollar Holding Steady at 70. Take a look at the broader asx right now. We are in positive territory at the moment, by a quarter of 1 . The heavyweight sectors of materials and financials holding up strongly. Amp performing well after it confirmed it received a nonbinary indicative proposal from aris management. Thats enough to propel those shares higher. The nikkei is weaker by. 5 . Well. Spi weaker come as lets get to the first word news with Karina Mitchell. We start with china. It released the first limbs of its fiveyear plan, promising to build a tech powerhouse and emphasize quality growth overseas. Initial details from the communist Party Central committee stressed the need for sustainability in a robust domestic market. The new plan elevates Tech Alliance to a National Pillar, but there is no guidance on the desire to pay for growth. Coronavirus numbers continue to rise in the u. S. Daily cases in new york the highest since may. A record search in the midwest. A new report says the death rate for covid19 is higher in operate up or Income Countries, who have more elderly populations. The richer nation fatality rate is more than four times as poorer countries. Germany is sending a wakeup call to eu leaders, saying they failed to move fast enough on the coronavirus as it calls for a second virus lockdown. Politicalkel says reality stopped governments from imposing tighter restrictions, and leaders must learn lessons and act more quickly. Germany and france are now entering new lockdowns. The u. K. Is considering doing the same. Thailand is revising its Growth Outlook, saying that economy will shrink by less than previously thought as virus relief measures alleviate some of the impact of the pandemic. The wider economy have been devastated by the virus. The government now sees a contraction of 7. 7 this year, down from a decline of 8. 5 forecast in july. Global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell, this is bloomberg. Imminent dualups ipo is causing an investor frenzy. The shanghai listing is seeing record demand, being more than 870 times oversubscribed. Themore, we are joined by leader in our china markets coverage. Is this the biggest retail demand for any ipo, whether in shanghai or hong kong . It is. More than 870 times oversubscribed in shanghai. That implies 2. 8 trillion of goods. For context, thats unleveraged. Retail, investors cannot take on debt for ipos. Theres a real unleveraged bid. In hong kong, one of the people we spoke with used 223 times in hong kong. In the u. S. , the regulatory limit is only one time leverage. So it is massive. You mightally as well bid for the ipo in hong kong. The allotment is so small, 50 shares. You only need about 4000 hong kong dollars. Its not a huge amount of cash you need to set aside. The sense is you might as well bid. To of the people we spoke was kind of refreshing. Wasbrokerage website he refreshing his brokerage website for sec. Around noon, and he managed to get it for his portfolio. It ran out in minutes. Its kind of a feeling of a lottery in hong kong. On novemberg begins 5. What do we expect on that day . Were asking around, and we have a bet in the office how much the stock will pop. In hong kong intraday, it will be interesting. 8 to 66 . Nge from the expectation is it will rise. One of the investors we spoke with is predicting a 30 pop on the first day. Shanghai, in most mainland exchanges, there is a 44 limit for stocks on their first day, but on the star board, where ant will list, there is no limit. Earnings,s projected it is expensive, but not hugely expensive. 52had some ipos pricing at times earnings in shanghai. Ant is a much bigger deal. Alibabaack ma and behind it. It is not a huge valuation. We expect some exuberance, especially for those who could not get a slice of the ipo in shanghai. You would expect some bids in the first day of trading. Stal sophia horta e co joining us. Still to come, we take a look at chinas economic plan with li yong. That is coming up. This is bloomberg. Shery heres a quick check of the latest business flash headlines. Alphabet surged in late trade after reporting a return to growth on increased ad spending. Revenue for the third coder rose, lower than this time last year, but better than the previous period, which saw a fall at the height of the pandemic. Youtube has been googles fastestgrowing business, bringing in 5 billion dollars, up 32 from last year. Amazon is predicting a steep jump in sales for the current quarter, indicating it expects online demand for the coronavirus to extend during the Holiday Season. It expects revenue for the december. It expect revenue for the december period to Beat Estimates of 112 billion, although it warns operating costs will be higher due to covid19. That pushed shares lower in extended trade. Facebook posts better than revenue as ad spending rose despite a major advertiser boycott and several other policy issues. 21 billion, to slightly above the average estimate for the three months through september. It had two and threequarter million active monthly users, just shy of 8 billion. Paul airlines are going to be in the spotlight today. Chinas big three carriers among those stocks reporting. We expect losses. There might be signs of a recovery with Domestic Travel almost back into novel. We are joined by will davies. How are the big three China Airlines looking . What are we expecting from their results . Initiallyre hit hard when the outbreak began in january. February was their worst time. They have been building back. In september, they were back above what they were last year. The international side, there is an issue. There are signs that will improve, with singapore and china likely to open up further so their bidders cant their visitors can come from Mainland China month. They will still likely post losses, but they will be narrowing from before. China southern is likely best positioned. It has its own cargo unit. It has warned are ready the first nine months of the year will be tough. Eastern, air china, all recovering well. Air china probably the worst, due to its larger international exposure. Shery we have seen japans government trying to spur travel domestically. What can we expect from Japan Airlines . They have been benefiting from that. Japan airlines was hoping to bring full capacity domestically back this month. With ad a setback, along resurgence in the virus in japan. So they have hit a bit of a hurdle. Far advanced as china is, in terms of recovering from the virus or having such large domestic markets. They have further to travel, so to speak. Progress is being made. We should look out for their outlook during the year. They have been warning weather. Eports posted a huge loss they have not released it officially, but will give a forecast with their earnings today so we can get a Bigger Picture better picture on their prospects. Shery that was will davies. Airbus able to halt its cash trade in the Third Quarter, providing a platform for recovery when the covid19 pandemic eventually eases. The ceo aboutked plans to ramp up production, and whether the worst is over. With are quite satisfied the Third Quarter. We didnt get what we want to achieve, which is no longer burning cash in the quarter. Thats what we have achieved. We believe we are in the corridor of expectations. I cant say if the worst is behind us. I can say the plan we have put in place, the results we were expecting so far. Lets talk about your biggest program, the a320. The narrowbody that drives the bulk of the world airlines. At the moment, you have production at 40. You will continue that until the summer of next year. Then you are going to ramp up. 47. Will ramp up to what do you see the confidence to do that . Your friends in chicago sounded downbeat. They were talking about a new reality. Why do you have the confidence to ramp up that line . Productve a very strong and very Strong Demand from the market for that product before the pandemic. As you can see, also beyond the pandemic, we have not been facing cancellations. Thats a very positive sign from the markets. We are now at 40 aircraft a month, in terms of production. Converge,ying to which we achieved in the Third Quarter. We have continued to stay at 40 per month for the foreseeable future. Are in our supply pen supply plan ramp up at the beginning of the Third Quarter of 2021. It was earlier at the beginning of the Second Quarter of 2021. So we had pushed that point in time by one quarter away. We have continued to monitor it. We have the contact with our customers, it would require the second half of 2021. We are in a very dynamic market, given the pandemic, and we remain very focused. On the shortterm, we think it is right. To thatt to come back dynamic approach you are taking. Which regions are giving you the confidence to be able to do this . Is it all china . Its not all china. You make a good point. China is recovering very well and is strong at the moment. What it was ino 2019 for the domestic flights. Seeing a combination globally around the world, and when we look at one or the other, it is fast changing. Sometimes good news, sometimes bad news. So we have to remain prudent locally. But the overall market tells us the rightems to be position for the prediction of the family. You mentioned the dynamic approach you are taking to matching production and deliveries. That is critical to the cash flow story you have been discussing. How challenging is it to make that happen . It was very challenging at the outset of the crisis. We are producing by far more planes than we could deliver. We have inventories that have piled up. Finishedt 145 planes but not delivered by the end of h1. Now by the end of the Third Quarter, we are down to 135. That is an important indicator of the situation. It is now slightly more than what we produce. Thats why we have reasonable confidence for quarter 4. Its why we issue guidance for free clash will cash flow in the Fourth Quarter. Coming up next, we look at fiveyear economic plan and what it means for global trade ties with China Association of International Trades li yong. This is bloomberg. Shery china has laid out the first lines of its latest fiveyear plan, vowing to build a technological powerhouse and stressing the need for sustainable growth. Lets discuss how this may affect its relationship with the u. S. Joining us is li yong. It is always great having you with us. How much of lines, what came out actually reflects was happening on the trade side of things between china and the u. S. . Plan that isis going to be finished early next year, and it is really kind of a ccp is givingthe to the national congress. Basically, it is based on the assessment of the Current International situation. Not just trade relations between china and the u. S. , but because of the impact of a pandemic, china needs to be prepared for beyondact that could be this year and likely next year. This is really the assessment of the current situation, and there is assessment in the relatively longerterm. Chinas position will be potential of the domestic market, how china should develop this, and at the same time, developing the relations with the international market. Of the this is the idea , developing the next fiveyear plan, as well as the 2035 vision. And i think this plan is going to provide a stabilizing factor, in terms of the uncertainties foreseen in the next couple of years. One of those uncertainties is who goes into the white house next week when we have the president ial election in the u. S. What do you expect beijing to favor, in terms of a biden or Trump Presidency . To be honest, i dont think there is any particular choice. I agree with ray dalio of bridgewater, saying to the effect that the sinoamerican asations are being defined more than just the trade dispute, and the dynamic is expected to continue regardless if vice former Vice President joe biden wins or not. I dont think china will count on the change of the leadership of the u. S. For better trade relations. China and u. S. Have been consistent, in terms of developing a healthy, mutual beneficial relations. The trade relations, even during the pandemic, has been developing quite good, in terms of the growth, and in some categories, the increase has been quite significant. At the same time, chinas imports in the last three 44. 4 . S increased by that is a reflection that there is a kind of embedded economic and economice relations of our two nations. Smoke ofieve after the the general election settles down, whoever is going to be in the white house, i think they are going to face the economic realities and seriously consider is going tocy benefit the u. S. And how the relationship between the two countries is going to benefit the American Consumers and business communities. Features of the Trump Presidency is he has managed to antagonize a number of his traditional allies. Biden,al president candidate biden, has been pledging to unite the economic might of democracies around the world to counter abusive economic practices. So thats a very different position to the one president trumps has taken over the past four years. How might that affect thinking in beijing . This is really china is prepared for whatever uncertainties. That over theason last five or six years, china has been trying to develop the domestic consumption capability, which is going to be kind of a stabilizing factor in face of external uncertainties. Theave been dealing with Trump Administration in the last four years, and there have been some has been some progress. Phase one, and according to reuters, china has implemented the 71 of the target of purchasing american agricultural products. 50 of the 57 commitments have been implemented by china. Even though there is some kind of political rhetoric against china, in terms of trade, that has been going on on a relatively stable basis. China has been fulfilling its promises in the commitment. Theink that is the line Business Community can expect in the coming years. So whatever happens, it is chinas position to develop a healthy relationship. If there are any differences that can be managed through talks, negotiations, as we have is the currentt situation as i see us. , it was great having you on. Thank you for your insight. Lets get a quick check of some apple suppliers across asia. They are mostly japan, korea, and taiwan. We are seeing broad Downside Pressure when it comes to the japanese mains. Sony down more than 1 . The chip supplied down a quarter of a percent. We have seen apple reporting Quarterly Results on top of wall street estimates. Record sales of maxon services, but when it came to the china numbers, revenues fell 29 . Switching off the boards, we are going to see taiwan suppliers, as well as a bit of a mixed picture but mostly Downside Pressure. Taiwan semiconductor also down 1. 6 . Pega tron, another big supplier for apple, is down. This as we just had apple earnings. We will have more analysis on apple and the other tech results with eugene munster. Our markets coverage continues as we look ahead to the start of trade in hong kong, shanghai, and shenzhen. Bloomberg markets china open is up next. This is bloomberg. Is 9 a. M. Beijing and shanghai. Welcome to Bloomberg Markets china open. Down to theunting open of trade. The last session of the week. Lets get session of the week. China releases the top lines of its fiveyear plan fiveyear plan promising to build a tech powerhouse and emphasize growth over speed. Several lines will be a