Their toll . Unrest at uber. This is daybreak asia. We have to talk about that disappointing data on friday out of the u. S. All eyes will be on the big china data dump in the next couple of hours, including secondquarter gdp. That will be key for asian markets. The cpi and retail Sales Numbers coming in. Where is inflation . The fed is likely to continue to delay raising rates, and you saw the enthusiasm for that in the equities markets. Lets pull up the boards for how we ended on friday, adding on gains, the dow of 84 points come the s p higher by. 5 , the nasdaq adding. 6 . Quickly come inside my bloomberg. The fed delaying rates is great for everyone else except for the havecials, which investors been anticipating a hawkish fed and want to see those margins that,sed, but without another major headwind for the financials. We will see if there will be a rebound. We are starting trading in asia. It looks to be pretty positive and following wall street on friday. New zealand, of. 1 right now. The dollar pointing to that fresh tenmonth low. Support some of these higher yielding currencies like the kiwi. You strive australia, new twoyear highs, and the best weekly gain since march for the currency last week. Equities futures heading higher by 14 points, and oil about 46 a barrel. Today for thed marine day holiday. Dollaryen still trading come a 113 irength, now at should say 112. 51. That is ahead of the u. S. And ecb this week. Wrapup of lets get a the first word news. Haveind china is said to deposed a party chief considered a rising star ahead of the leadership shuffle. He is under investigation for violating Party Regulations and damaging its interests. Officials say he was taken away on friday night while in beijing for a work conference. Once furthert investigation into the activities of President Trumps Election Campaign amid concerns of russia directed misinformation. Senator mark warner pointed to the way false stories about Hillary Clinton were circulated. The president launched a fresh attack on the media as a new poll shows failing approval ratings. A medical scare for senator john mccain has meant the postponement of the Republican New Health care bill. Mitch mcconnell says he has put off the debate while john mccain recovers from unexpected surgery. Say the new plan will be better than an earlier estimate, which forecast 22 Million People would lose insurance by 2026. Jp Morgans Jamie Dimon returns from an overseas work trip and unloaded his frustration. He said he almost felt embarrassed at being american because of the gridlock and inertia and washington. He said the u. S. Must focus on things that are good for all and insisted growth would be stronger if politicians made more intelligent decisions. Since the Great Recession, now eight years old, we have been growing 1. 5 to 2 despite of stupidity and gridlock. We have become one of the most be are credit, confusing, and litigious societies. Embarrassmentn embarrassin traveling around the world and listening to these stupid about this country. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Thank you. Markets awaiting a big data released from beijing, including gdp, factory output and retail Sales Numbers. Time where china holds a twice a decade conference on Financial Regulation where president xi jinping\stronger role for the pboc. Xi jinping backing a stronger role for the pboc. What were the key Takeaway Points . We just heard from jamie dimon. Lounge inthe rooftop the middle of the Financial Center in china. We have been looking at the Financial Sector and shanghai and seeing the ramifications of the weekend meeting as we await gdp numbers at 10 00 local time, expecting stability, but what everyone is talking about is policy going forward. Gdp is backwards looking. Conference was forwardlooking, preventing systemic risks in the Financial Sector as an eternal theme, eternal theme, top priority number one, also financial deleveraging must serve the real economy. That is the number one priority. Second, preventing risks. Three, deepening reforms and opening up. Accountability is also a big theme as they announced the to take over ag supervisory role along with the pboc, giving great power to the central bank in oversight. Acknowledged and and preventing systemic risks, basically they will have a new, coordinated committee within the state , andil with pboc oversight accountability is a key issue that has been promulgated by president xi jinping. Was cited inf duty the announcement from the they do regulators, if not spot and dispose of risks and timely they will be labeled with their election of duty. With dereliction of duty. What about these reforms and how they might show up, or are they going to show up in the secondquarter gdp numbers that we will get in a few hours . That is the big question. The Deleveraging Campaign, how much would this bite into the Second Quarter . First quarter, we had some stimulus late last year, but the economy to get on a stable footing, so 6. 9 in the First Quarter was perhaps the peak of this recovery. Now we have stability even though ppv high inflation is urbanng to wane a bit and investment and Industrial Production expected to be flat. Six point 8 is the consensus estimate, so it does not sound like much of a drop off. Stability, and that is what authorities want. Exports are doing really well though. All right, steve pearce. Thank you so much. We will be back with you for more. We will be looking at those china gdp numbers throughout the morning on bloomberg television. Citigroup chief and china a con a mess will join us for an Immediate Reaction as we see the numbers crossed the bloomberg at 10 00 a. M. Hong kong time, midday in sydney. Up next, we will get the view from Standard Chartered joining us live in our hong kong studio next. This is bloomberg. We are counting down to asias first major market open. Japan is closed today. Futures up. 2 , building on gains we saw here in the u. S. This is daybreak asia. Story, to our top chinas latest gdp reading will be released later on. Expecting six point 8 , keeping expansion within the governments target for 2017. Joining us now is the chief china economist at Standard Chartered, formally at the pboc and imf. Lets talk about what we heard from this conference out of beijing overnight, over the weekend, the creation of this cabinet Level Committee. Is there Something Different in this set up from the previous things we have seen . You have seen these top chiefs meet once a month or so, and a lot is not accomplished, but the fewest different this time around. The establishment of this backgroundome the has been inadequate coordination among the regulators, which gives an opportunity for regulatory arbitrage. , thenew Committee Institutionalization of the coordination mechanism among the regulators, is a positive step thisds addressing regulatory arbitrage. We still do not know of a lot of details. Who will be leading that . It appears that pboc may play a bigger role in terms of daily operations of the committee. Do think that brings up any issues having the pboc at the helm, or does this clear up some of the arbitrage when it comes to regulation, having a more centralized role . It is less than the market is expecting as a super regulator. Importantng to a very political event with the ninth Party Congress, and any major organizational shakeup could cause some regulatory vacuum. Is there a bit of horse trading within the regulators . The major regulators, including the pboc and committees, remain intact. Another layerely on top of that to try to improve the working relationship and coordination among them. Do you think that china needed Something Like this . Werew the regulators sometimes in conflict with the government needed to make sure they were all in line, so do you think Something Like this is necessary . It is very necessary in my view. In the past few years, chinas expansion has been rapid. We have seen the financial innovation, but in the meantime, Financial Regulation gives riseind, which to financial risks, and that is a major shift in tone of the financial conference. Going forward, i think financial , theation will be authorities will be wary about financial innovation. It will have to pass the test of serving the real economy. On the other hand on relative terms, Financial Security and stability will become more important in that context. Deleveraging will remain the main task of the government, growth rates the has receded and growth will be moderate in the Second Quarter. We know that the beijing government wants to take this Deleveraging Campaign wider and broader throughout the economy. I want to bring up a chart here that shows you the debt levels in china. We know that big problem is corporate debt. This is btv 624. It is incredible how much of gdp and china followed by Household Debt in blue and government that in me, the bankuse debt in red, just how much the corporate debt has risen. Tackles, deleverage, aree this problem here these Companies Going to start to find other ways to finance, and what does that mean for like ipos and equity markets . What are we going to see possibly . It is interesting to note that president xi jinping mentioned over the weekend that deleveraging, especially the sle deleveraging, will be the first soe they leveraging, will be the first priority. Soes account for half of the total corporate debt come a so we think the general Financial Condition would be in general tighter in the mediumterm as long as growth targets can be reached. For theorate sector local governments, the president also mentioned that will be strictly controlled. ,he corporate sector will still i think the Financial Conditions would be tighter for the corporate sector as well. Can the pboc continued this momentum when you have money below 12 , hitting Single Digits now. Btv 4276, and we see the percentage of new lending versus the percentage of gdp, that actually continues to fall over the last two years, so some people see this is an indicator of where growth is heading in the cycle. Do think this casts a shadow for the Growth Outlook for china . Definitely the pboc is facing a tightening bias, and below 10 could become the new normal. Our estimate continues to show of gdp isa percent rising, but most likely this year, it will rise at a slower pace. We also have our own estimate of chinas corporate debt. Currently the deleveraging is likely to be a soft deleveraging, which means the first up is to bring down the pace of leveraging, and the ratio may continue to rise by 2020 from currently 260 of gdp. Its interesting they omitted that word neutral and the policy guidelines. Great to have you as always. Can get a round of stories you need to know in todays edition of daybreak for bloomberg subscribers, dayb on your terminal and in the bloomberg anywhere app so you get news on industries and assets you care about. Make sure to check it out at dayb. This is bloomberg. This is daybreak asia. A quick check of the business flash headlines. Includingholders benchmark said to have discussed selling stock to softbank. It represents a major turning point. Amassed 500 backers in the Worlds Largest start up. The troubles this year have taken a toll. Toshiba has agreed to hold off on disposal of its flash memory chip unit. The sale is being contested by western digital. Raise cash toto offset multibilliondollar at its Westinghouse Nuclear arm. Western digital is concerned the chip Tech Knowledge he will indepth in the hand of competitors. Amazon Expansion Plans, including a 13 billion for whole foods, raising questions in washington and wall street is washing. There are calls for the acquisition to consider implications. One investor has gone shortselling antitrust concerns will erode its value. Banks in the spotlight to kickoff the week on wall street three of the biggest lenders posted earnings friday. J. P. Morgan reported that drop in trading revenue, but also might earnings, so you call it a mixed picture come although financials were the worst performer on friday. Mainly because of j. P. Morgan. Morgan chase, and wells fargo disappointed. That was the headline. The Silver Lining is j. P. Morgan had record earnings. Year to date, they are up almost 6 . They were under pressure on friday. Worseg revenue fell 14 , than warned. The bank has earned 26 . 5 billion in profit in the past 12 months, the most ever by any major bank. It said it would increase loans to the consumer this year at a rate double than anticipated. We did have the cfo lower expectations for trading revenue in the bond department, talking about muted volatility. Citigroup, they managed to close a gap on Investment Banking with j. P. Morgan. That was the headline. They did manage to come within striking distance, particularly bond trading revenue, with j. P. Morgan chase. Citigroup was under pressure on friday after performing better than some of the banks year to date. Citibank is saying that Investment Banking results were the strongest in years. Trading also, traders proving adept at avoiding an industrywide slump. J. P. Morgan has long been the dominant bank in that business. Theceo on friday called best performance in seven years when he talked about the investment bank, revenue from 3. 2 income was down 6 to billion, just 1 million less than j. P. Morgan chase comes so they are on their tail. Big question is how will it play out for Goldman Sachs and bank of america. Wells fargo are planning to shelf more businesses. About theirtalk costcutting on friday, and some more headlines since then on reduction in businesses. Ceoof the things the pointed out is the bank has suffered the loss of tens of millions of dollars in municipal underwriting, and that is because a lot of states have backed away after their accounting scandal. Is not a material and tack on the bottom line, but are concerned about the disaffection of clients and have pledged to win back trust. Is the also interesting ceo reconfirmed that many of the banks are looking to, really washington and the white house, for what is ahead in terms of banking reforms and taxes. Back to you. Su keenan with that wrapup on wall street and earnings later this week as well. We take a look at those when hoter this we will look at trade numbers just ahead. This is bloomberg. Not looking good for this monday. There is a chance of rain it iss we are look at and very humid in very hot in new york and the markets were higher on friday and we saw the Energy Shares and financials not doing well. President xi jinping has part of the efforts to safeguard the chinese Financial System and he said that a new Stability Committee will be made and could not define the relationship with the central bank. The ecb is on track and it is likely to drag the process out. The unwinding is starting in january and it is up from the months previous forecast of. State media is says he is eligible for bail and served as somesidential aide and opponents have condemned the deals, saying that they were to lean too lenient. The reports on minimum wage will be raised. Minister said that they would address the unemployment and the growth. He pledged to raise the minimum wage by 2020. Global news powered by 2700 journalists in 120 countries. This is bloomberg. I want to bring in the Global Markets editor. Tell us how the week is shaping up in asia. Good morning. We are going to get positivity and there is not a huge amount to move the dollar and it will keep the pressure hanging around it is interesting coming off of the back of the inflation data and this is the focus moving on with the Economic Data getting sense of what is under the hood. Both of these standing pat and it may not the enough. A start of the positivity for equities and there are big bellwethers within the industrys. We have seen this rotation and a lot of people call it that. At thetainable is that moment . Reminder selves of the outperformance in the equity there is an unwinding we are seeing and you alluded to the outperformance and a relatively decent performance from european equities. The danger is that a lot of people are arty involved in this trade and the bank of america says the long european equities position as. They continue with the revisions and it is enough to keep the performance of stocks running and that is where they say you should be. Thank you. Sheetis a smaller balance and Consumer Prices barely barged. Lets go to our Global Economics and polis the editor. Breakdown of the reports and it is a make it or break it number. A oversightit of with the expectations and janet yellen would remind us that this is not a set trend. This is envisioned by the markets. Of course, i am he