The stakes are raised in tabcorp with reports tatts a major player may enter the game. 30 minutes away from the start have atrading day, lets look at what is happening. Haidi it is all about the oil patch as we head into ministersns, oil flying to russia for talks, saudi arabia saying a supply cut may not be necessary. That has taken some wind out of the recent rally in crude. Wti falling over 4 friday, extending losses. We are holding above 45 a barrel, but just. , 46t looking similar, off tilde . 67, so it is about the energy space. If we do get that supply cut announced and the details come through, markets have priced it in. If you look at where we are sitting three months out, weve come off that rally builtin after we started hearing about these potential supply cuts. This is what we are looking at in terms of the broader markets, a mixed picture, but the wind taken out of Japanese Equities. The nikkei 225 close to session lows. The topix snapping its streak of gains on account of that stronger yen. The dollar index giving up gains, taking the pressure off asian emergingmarket currencies, but that is what is weighing on sentiment in tokyo. , political storms gathering after protests. Elsewhere, weakness from malaysia. Tie one up by. 2 as well. , this isrrency space what the yen is looking like, taking risk sentiment out of the market, a decline when it comes to dollaryen by. 8 . We were of days ago, looking at that 114 handle. That is what is driving the markets. If you take out the yen story, is back to oil. We will look at the risk picture, gold rebounding, an as we get1 there some risk taken off the table with opec talks. , china data,speak pmi, expected to slow. Indias gdp numbers for the third quarter, so a lot of that built into this week. Rishaad lets have a look at first word news headlines. Here is sophie kamaruddin. Sophie prophet at Chinese Companies accelerated. Industrial profits rose just under 2 in october. The recovery comes amid steady if slow Economic Growth. The death of fidel castro has prompted questions about the u. S. Cuba fothaw. President obama offered condolences to the castro family. Donald trump tore into the leader, echoing Campaign Promises to demand a better deal for the u. S. And cuba. Castros funeral will be saturday. Pressure mounting on koreas president with one of the biggest public protest. Protesters claim one Million People gathered to declare should be arrested. The demonstration came amid calls for her to bnp jd for peddling influence and allowing a business friend undo access to government. An opinion poll has good news for Prime Minister shinzo abe. Support for the Ruling Liberal Democratic Party at 60 . It revealed nearly nine out of 10 people surveyed say there is no need to pay more for u. S. Military troops in japan. More than half of post cooperation with russia. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad right, china making another move to opening up its Financial Markets with next monday, the launch date for the chin chinhong kong stock connect. We are having a look. It has to have been two years in the making. The date has now been announced as december 5. Investors have been looking ahead to the second link into and out of china. Like the shanghai link, this opens up the market for investors coming in. Stocksre a lot of tech and Health Care Stocks that some called the new economy, so different from elsewhere where you might see bluechip stocks. These capital says shenzhen named a window on chinas domestic opportunities, seen as immune from u. S. Politics. Daily trading limits are the same. If you want to buy into shenzhen , access to any stock in the exchange index, and also the small and midcap Innovation Index come a value of more than 6 billion yuan, and any dual listed companies. Stages, hongal kong saying that access to the small cap gauge will be restricted to Institutional Investors. Tends to be quite volatile, quite a few Retail Investors, so they tended to make trading choppy. Rishaad yes. We have seen that, havent we . Just one way of china opening up its capital markets. What else has been going on . Msciind in june, the rejected adding shares, saying there were barriers to international investors. Tohave seen china committed this move to open up its markets. In february, it removed limits on foreign involvement in the china interbank bond market. September, Institutional Investors mainland asset allocations were scrapped, so gradual moves towards opening up the market. This is seen as another move. However, the shanghai link hasnt perhaps been as popular as authorities hoped. It rarely reaches the daily quotas imposed on it. There is downward pressure on the yen, some more flows coming southbound into hong kong. Analysts expect active southbound trading in small and s, and also this weaker yuan. Rishaad thank you for that. China hiking borrowing costs operations,e pboc selective tightening that reinforces the view that beijing has moved away from monetary stimulus. Our Corporate Finance reporters having a look at how this all works. Good morning. Instead of doing a broadbased Interest Rate beenase, the pboc has lengthening the terms of the open market operations. They think cutting down the seven day reverse repo operation , so now injecting funds by using 14 day and 28 day contracts. That has increased funding costs, of thats how the pboc effectively tight and 25 basis points in the money market rate. Allowingessentially the liquidity to go down a little bit here. The point when naturally we have an economy that is not all together that convincing . Is to cut point leverage in chinas Financial Markets, especially the bond market. So, thereast year or has been a huge buildup and leverage in chinas bond market because the yields have been declining, so investors have been using leverage to boost their returns. Has realized how dangerous this is to chinas financial health. That is why they are increasing the funding costs to discourage Financial Institutions for the use of leverage. Investors have been wondering what is going to happen to the potentialt with a deleveraging. Bond prices are likely to come down and the returns next year as well. If you look at the chart of aaa rated bonds, threeyear, 10 year over government bonds, there is a jump in yield spread of 14 basis points this month, the biggest monthly jump since april. We also saw some signs of strength in chinas bond market, two defaults this month, so next year will be a tougher year for chinese Bond Investors. Rishaad thank you very much for that. On inn what is going china later. J. P. Morgan telling us about the pace of reforms and the impact on chinese markets. Two key guest is sees risks to a smooth president ial transition in the u. S. That could roil markets. This is bloomberg. Rishaad this is Bloomberg Markets asia. Thank you for joining us. Lets look at how you would characterize what has been happening with records being set virtually every day when it comes to u. S. Equities and this tremendous run in japan as well. The run in japan is interesting because the yen graph shows tremendous capital into the u. S. Dollar. That can only be a positive because it is a great enhancement to exports from japan. It probably means the equity market in japan has upside. , it is aof abenomics boost because it might be inflationary, but it is a policy easing by default, so the japanese market is naturally rejoicing. Rishaad absolutely. The Government Pension Fund, a great story on that, they have benefited from what is going on with the election of mr. Trump. Do you see it caring on . Carrying on . But we have to remind clients that this is not a universal boost for all asset classes. If youre holding listed property and infrastructure and believe there is going to be fiscally driven Infrastructure Spending from the United States and that will be entirely borrowed, you have to recognize there is stress there for things like infrastructure and listed property, things that rely on borrowed money, but in general it is a big positive for markets. Rishaad yes, absolutely, the point is you can invest in japan, but you will get whipsawed by the currency. You will be likely losing outcome is a how do you protect yourself . Think you do hedge yourself that easily, but one and just thing anecdote i will share with you from a meeting with the head of challenger is challenger Annuity Business in australia is broadening its reach into japan because the number of japanese investors are looking for pension Revenue Streams that are not yendenominated, and theyre coming to this part of the world for those streams, so challenger gives them the challenge of broadening out those pensions and doing twentyyear annuities for its clients, just one of export from australia to japan, a Financial Services export, and the exports from australia apart from the commodities are in a number of services, and we have seen the benefit from countries like japan looking southward. It is a great time for our on thebusinesses services 40 strain businesses on the services side. Rishaad a bit of news coming in at the moment, a stronger fixing today, 6. 90. The trendspeaking, has only been in one direction. It is just another pause as we head towards that seven handle . , and obviously we will probably get there. Is toallenge for the pboc keep Interest Rates where they are. Six months ago, we thought they would be cutting by now, but they cannot because of the flow into the u. S. Dollar. Given that they hold 8 of the is one ofet, china several countries losing ground to a stronger u. S. Dollar. This trend will not change, but makes it an incumbent upon china to continue to keep rates where they are and transition to a service is a economy as neatly as possible, and they have done a good job so far. Rishaad with the dollar move, equity move, and bond yields, hasnt everything, that too far too fast . Yes, and we need a rest. We need currency markets to stabilize, because a falling u. S. Dollar or rising u. S. Dollar, which ever it is, if it happens too quickly, it destabilizes trade. If we can hold and let equity markets consolidate, it would be a better outcome, because we have not seen legislation on Infrastructure Spending go to congress yet here it yes, it will pass, and may pass quickly, but we cannot assume that taxation legislation and Infrastructure Spending will sail through congress, even with the majority. Rishaad food for thought. Right, lets tell you about the business flash headlines. Oh cbcs purchase of Barclays Wealth management divisions in hong kong and singapore, now priced, 30 below estimates. It will increase the thing of singapores asset base to more than 75 billion, letting it compete more equally with rivals. Fined 1. 3has been million for paying undue profits to its owner family. The Fair Trade Commission says korean air sent profits to two profity transferring less commission and overpaying for outsourced and services. The report has been sent to prosecutors for consideration. Korean air declining to comment. Looked ons apartment stepping up a demands with new strikes this week. Day action ended sunday, but pilots on shorthaul flights will walk out tuesday, and all pilot start work on wednesday. A live stanza chief executive says the airline cant survive a lufthansa chief executive says the airline can survive. Ndia sets aside more reserves lenders have accumulated 75 billion after Prime MinisterNarendra Modi band 500 and 1000 rupee notes. With a temporary cash reserve ratio to absorb some of that money. Next, reports saying the Tabcorp Tatts could be gatecrashed by a leading rival. This is bloomberg. Tabcorp on the up in sydney, word that a competitor might try to gatecrashed the deal with tatts. What would this mean for tabcorp s plans . It might mean time for a new plan. It was going pretty well when tabcorp bought a 10 stake in tatts to head off other interest. Tabcorp was to create a panaustrian bedding agency with the merger. We have this report from the u. K. Daily mail that led br adbrokes is preparing an offer. The market responding pretty well. Tabcorp shares were up strongly, now up 2 . Tatts up about 1 as well. Analyst with views on this, for example, citibank saying this bid could appease any concerns held by regulators over having them tie up. Bedoes warn that this could an difficult bite due to the size of tabcorp. Rishaad thank you. Some other stories making headlines, phillips taking on ge and siemens for a share of the lucrative Health Care Solutions market. The company says the medical Software Market could grow twice as fast. It is saying that it will help interpretation of data from scans. Holiday shoppers spending less so for black friday weekend and last year, another sign that American Consumers are relet and discounting,out including online and offline purposes. Shoppers been an average of 289 dollars over the weekend, 10 less than 2015. A third of consumers said their purchases were on sale. Of the campaign to take the u. K. At of the European Union have rejected a plan by boe governor mark carney to negotiate a transition for companies. Brexit leader called for an clear, clean, and simple approach. Animated musical film has topped the north american box office, raking in 55 million. The film outperformed three , the biggesteases thanksgiving debut since 1980 to, although it missed ticket sales estimates. On when itt is going comes to the trading day, japansouth korea, on the way down, nikkei two a stellar , sydni looking like this, as well as wellington. It is a falling market story when it comes to the asx, a fraction lower. New zealand, the opposite direction. This is what we have for the hong kong start of the trading day, index futures. 6 higher, and premarket, pretty much flat. The open is coming your way next. Planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Rishaad you are back with Bloomberg Markets asia. Having a look at futures contracts in hong kong, a flat start to the session. Nikkeillar run in the and Japanese Equities is shuttering a little bit to a halt. Looking at that and opec this week, that meeting taking place. I guessed a bit later suggesting if we get a deal, oil spikes to 55 to 60 a barrel. If we dont, 30. Below theishing, well 1200 level, still slightly higher this morning. Trading day is upon us when it comes to hong kong and shanghai. We are having a look at a stronger fix for the yuan this morning. Haidi slightly stronger, unsurprisingly, a little bit of a pullback in the dollar index. The bloomberg dollar index weaker for a second day. As we look ahead to more data from the u. S. , the future trajectory will be informed of what the fed does next. , 6. 9348, still looking at a record low at the moment when it comes to the offshore renminbi. We had the device ration and august last year. We have come a long way since then, but we had this bout of windnbi weakness, some coming off the u. S. Dollar, reflected when it comes to the chinese currency. We are seeing this play out when it comes to the yen, falling by 1 , the most we have seen since november 9. Thearyen, that is narrative driving the risk off sentiment we are seeing across the region, particularly tokyo stocks. 112 when it comes to the yen there. Were are looking at the fx space, some pressure off the emergingean won and market currencies. The other part of the story is oil, watching opec. Comments coming through from saudi arabia saying that it is not needed at all, so some optimism out of the oil patch, declines for wti and brand. Just quickly, the dollar index looking like this, at a pullback of. 4 percent, playing out in terms of the movements in fx in asia. Lookseater china open like this, upside by. 3 , some good industrial profits, coming in at an acceleration over the previous month. Coming in on thursday, expected to weaken, but shows that general trend of stabilization. Like. 5 ,stocks up but a week future when it goes into a week that is heavy when it comes to even risks. Rishaad right, first word news headlines. Shenzhenhong kong stock an will start on december 5. Regulators announced the biggest monthly decline for the yuan since august 2014. The link arrives two years after the Hong Kongshanghai connect. Many Technology Companies are listed in shenzhen. China has tightened monetary conditions in recent weeks without an official announcement. An analysis of transactions ckows the pboc has cut ba insteadday operations, injecting more funds through 14 day and 28 day contracts. The move is seen as a sign of selective tightening. Monthsl the most in two amid increasing doubt that opec will reach an agreement this week in fee in a. Producers nonopec monday were canceled after saudi arabia pulled out. Instead, the cartel has called a meeting to resolve its own differences, including whether iran and iraq are willing to cut production. Russia is also reluctant to cut. Shopper spent less over black friday week in the