♪ i am rishaad salamat haidi. haidi: i am haidi lun. this is "bloomberg markets: asia." ♪ rishaad: asian stocks climbing with the mexican peso while havens fall. reaffirms hillary clinton's e-mail usage was not a crime. hong kong sales cut by up

to 70%. beijing'snger over influence returning to hong kong. a legal ruling could come today. haidi: samsung seeks redemption with the plans for ai in its next-generation smartphone. rishaad: the mexican peso on the way up. also, other ways of looking at this election. haidi: the yen weakening. the fbi came out and said basically never mind. take a look at this chart. it looks at the implied theability according to polls rather than the markets. markets tendedng toav exaggerated moved when looking at times of uncertainty, and that is what we are seeing here with the volatility index and the s&p

with nine straight days of losses. haidi: there could be several more black swan events. it'll must looked from a market that the remain camp was a shoo-in, but we know. presidency,a trump markets will struggle to deal with. a clintonu get presidency and trump refuses to acknowledge those results? haidi: 30 minutes away from the open. let's have a look at how things are going. right, let's talk about the markets. two big forces, and fbi letter clearing clinton from criminal wrongdoing. this move out of

safe havens into riskier positions. gold taking a hit, below 1300. gaining, andeso the s&p coming off of nine straight days of declines. that is playing out across markets in the asia-pacific. with theok at that exception of malaysia, seeing some pressure at the moment. , earnings inat focus, 60 companies reporting earnings across the asia-pacific. gdp, forex reserves out of china, and trade data out of taiwan, i'll do out in the afternoon. due out in the afternoon. we are 27 minutes to the open in hong kong. one group of stocks we will be following, one of those

don't-look-close-your-eyes moments. a lot of these property related stocks in hong kong. this group right here. this is how they traded on friday. look at the mix there, following the latest draconian measures to keep prices in check, which analysts and brokers are saying hit the amount of volumes and transactions, effectively , affectively 30% for nonresidents and foreigners. that is a space to watch, or not. close your eyes if you have a position. i will leave it there. rishaad: more details on that

story in the program. thanks. haidi: let's get to first word news with paul allen in sydney. theresa may says her brexit timetable won't be altered by last week's constitutional ruling. has worsened divisions with conservative newspapers blasting high court judges. theresa may says the government has a strong case to appeal the ruling that parliament must approve brexit negotiations. she called on opponents to accept the results of the referendum. iswhat we have to remember that we had a vote on june 23, the british people voted to leave the european union. the government is now getting on with that. paul: theresa may is in new delhi to lay the groundwork for a post-brexit trade deal. she's joined by 30 business leaders.

the u.k. cannot open formal trade negotiations and tell it has started proceedings to leave the eu. they will use talks with prime minister narendra modi to explore what a future relationship might look like. sources told bloomberg that the wanted to boost the dividend. spokesman says the information does not provide a complete picture. two former aides to south korean arrested asve been protesters call for her to resign over and influence peddling scandal. 18 is accused of leaking documents to president parks friend at the center of the allegations. the other is accused of pressuring businesses to donate to the chairs foundation.

president park has yet to be questioned by investigators. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: thank you for that. when it comes to china's runaway property pricing, there appears to be traction from the major cities. rishaad: tom mackenzie has been looking into this. what is the story? tom: these curbs apparently are bearing some fruit. data shows sales plans falling in beijing by 40%, year on year. shanghai, down 18% year on year. transaction boeings were smaller cities down 50%. ,e know that policy makers particularly top-tier cities, using curbs to deflate bubbles. approach this with

incentive measures, and this appears to have had some effect. the sales more humans data feeding into that picture. it is a difficult balancing act. going for this goldilocks balance. atng forward, we will look how these reductions feet into price drops and what it might mean for developers investing in properties. mild pickup and that, so those are things we are watching going forward, but sales boy aims a positive picture for policymakers here so far. haidi: we have also seen hong kong influencing property there. thesech of a role have buyers had in pushing up prices? it is one reason why since 2012 that the authorities have struggled to put a cap on prices in hong kong. you have seen a flow of money

from the mainland as mainland buyers hedge against a weaker yuan. the decision to raise stamp duty to 15% is very much likely to put a damper on that flow of money. that the items in hong kong could fall by as much as 70% with prices falling anywhere between 5% and 8%. this will be a key test as beijing reports back. they will be watching to see if they can strike this balance. they are worried about social instability in hong kong. developers as david has mentioned will very likely be stunned by this. falling.rk trading, so keep an eye on those developers stocks as those markets open in hong kong. haidi: thanks for that. talking about the desire to

repress social instability. china could decide on an interpretation of hong kong's law as early as today in the dispute over city legislators worri. haidi: overnight, police used pepper spray against protesters. a harken back to the occupy movement. rosalind: in the protests, yellow umbrellas being carried, assemble in 2014 of the occupy hong kong movement. the clashes overnight between police and protesters were in front of china's hong kong liaison office. organizers say that 4000 people marched to the liaison office. hundreds of police were deployed , some chaotic scenes there with

police holding batons and shields. pepper spray to try to stop protesters from breaching police lines. they were chanting hong kong independence. police say four people were arrested. was follows from what largely a peaceful protest where .eople had marched what had happened was some protesters had split off and moved to the liaison office, where it was like this, not too it got but then later on a lot more heated as the night went on. thisad: tell me more about move by beijing to interpret hong kong law. the standing committee could issued their

interpretation of hong kong basic law as early as today. they have been discussing it. there was a meeting on saturday. hong kong's basic law declares hong kong an inalienable part of china. oath when when the lawmakers take office. they have to uphold the basic to hongswear allegiance kong's special administrative region of the people's republic of china. this issue relates to two ths to takehose oa office were voided. intervene,china will ink willny th prevent these two lawmakers from taking office. haidi: this will stoke the burning embers of satisfaction in hong kong. ahead, could some

suns next smartphone convince consumers to stick with the company after the galaxy note 7 fiasco? bigake a look at how company is turning to artificial intelligence and the search for redemption. haidi: what will the results of the u.s. election mean for the fed? we will have more story on that next. this is bloomberg. ♪

rishaad: a quick check of the latest business flash headlines. raised its full-year profit forecast on improved performance in the u.s. they expect net income to raise to $194 million. takata is shortlisting bidders for a sale. there is concern they may file

for bankruptcy protection in the united states after losing one of its potential buyers. haidi: agricultural bank of china hit with a $215 million fine in the u.s. for hiding transactions. banking regulators said the bank of secure deals by middle eastern, russian, and chinese clients and try to silence a compliance officer who raised alarm. it comes to bank months after the bank was ordered to overall its money laundering protections. rishaad: china may let wall street banks run their own mainland divisions. u.s. companies have long had to partner with chinese companies, but officials in binging are -- in beijing are considering trading the rules as part of a new framework with the united states. the talks are ongoing and any agreement would need to be ratified by the u.s. senate. data: the latest u.s. jobs seems to pave the way for a rate hike in december. rishaad: could the results of

the election change all that? thank you for joining us. that is the question, isn't it? absolutely. i think this is what the markets have been worried about the past you days, just what will happen with these elections. we have gotten so many different surprises, especially the fbi late last month before the election. there was a lot of outcry from republicans and democrats, claiming the fbi was skewing the elections. also, we just got reports from the fbi overnight that these e-mails were repetitive and personal, so there was nothing to charge secretary clinton four. it has obviously been an election filled with surprises, and it has caught the markets very much by surprise. a look atyou take friday's jobs numbers,

essentially all around it was a good report. do you expect the fed to move barring some political surprise? we do expect a december rate hike. if we get some sort of election result that is market unfriendly, we could see a pause because of the fact that the market volatility becomes too great. one of the key things as that the fed has signaled clearly that they would like to hike. the payroll numbers on friday were key in terms of -- maybe they did not meet expectations, but the key thing is that we are seeing wage growth, and i think that is one of the important elements that the fed is watching. rishaad: i think you were pointing in your research to hourly wages. that is one of the big bears, wages have been stubbornly failing to rise, and maybe that could change and engender inflation in the future?

absolutely. i think that is one of the key things. proponent.n a big --hink we are seeing starting to see things like that ppia pti going into -- going into positive territory, 2.8%, soings rising these are signs of inflation coming through. haidi: if you look at the repercussions for asia, where do you see the vulnerabilities? political uncertainty of potential volatility and the continued tightening trajectory of the u.s. fed. the key thing right now for the markets, especially with a surprise when from the

republican candidate is the fact that his isolationism and protectionist policies have been quite worrying for a lot of open economies, so that we keep a lot of countries, especially asia, quite vulnerable. also, some of his isolationist policies in removing naval ships or american presence in the region, that also can create a lot of volatility in the markets. likeink something dollar-career would be viable for that because it is a barometer for risk. in an environment where we do see a donald trump wind, that could the volatile. predicated on what his policies and rhetoric has been. any times we see gains in the polls for trump, we see it in the markets, mostly because of

his campaign rhetoric about renegotiating nafta. rishaad: thank you very much. next, one of up all strays biggest banks sounds a warning. rishaad: watching property companies on the way down quite sharply in the premarket auction. we will have more on that. this is bloomberg. ♪

withad: you are back "daybreak asia". stamp talking about duties being increased for all residential transactions, and more when it comes to foreigners. haidi: we are seeing a selloff across the board. we had that dragged from the overnight session in the u.s. -- all seeinges

declines in the first bit of pretrade in hong kong. rishaad: let's keep tabs on that. meanwhile, the australian assion, westpac down 2.8% the bank announces full-year profit in line with estimates. haidi: how did the numbers stack up for westpac? paul: 7.8 billion australian dollar's, in line with estimates. year, buts last considering banks need to hold more capital and the increase in regulatory costs, this is a pretty good result. is they are abandoning the return on equity target set under the former ceo. the current ceo saying low interest rates, higher costs, and increase capital requirements means 15% is no longer realistic, but the market

is not shedding tears to see that go. rishaad: the government will update this state of australia's budget soon, and a warning that it could be the end of the aaa credit rating from blackrock. why is that the case now? around about this time we get the economic and fiscal outlook, and every gear it tends to blow out the may budget figure, so at the moment, the budget deficit is $37.1 billion. blackrock anticipating it will grow. it could be a catalyst for a cut. he said australian governments have been serial under delivers. what does he mean when he says the government under delivers? the former treasurer

forecast we would be in surplus now, but australia is still $37 billion in the hole. some of it is beyond the government's control. we commodity prices have had an impact on the terms of trade. the political scene is deeply divided. the call to happen election did not work out. mocon turnbull is down to a one-seat majority. it's making the process of economic reform in possible. inn though $6 billion savings did get past, it's a drop in the bucket when you consider what the government has to overcome to protect that aaa rating. rishaad: thank you for that. haidi: let's take a look at how markets around the region are faring. we are counting down to that shiny -- china open.

fixing.ve the yuan we see some upside in the asian region. rishaad: stocks under pressure, but still not stopping that market. we are up at the moment. the open is next. ♪

.aidi: this is "daybreak asia" i am rishaad: i am rishaad salamat haidi lun. the markets have just opened up.

david: premarket oxen suggesting a decline of 5% or 7%. to thef this comes down surprise story on friday. , ciccone and, if you will, attempts to the press the search in hong kong. -- surge in hong kong. there we go. financials, but you have the banks in there. real estate, 3.5%. that should be a cross the board decline, nine out of nine. hk, 6.5% roughly speaking. a few brokers are saying that if you have the stock, dumping. property brokers are expecting a

drop in transactions and prices over the next few months. i know we have heard it before. that story is playing out across markets. it is a 15% stamp duty across the board. if you are a foreign buyer, that goes up to 30% effectively. is that too small of a premium if you want to hedge a decline in the renminbi? people are talking about how money is moving in hong kong. a few other movers in hong kong. hsbc out with earnings, agricultural bank also. ,hina investment securities $2.5 billion was the price tag. let me check my notes. earnings in two and a half hours from now. agricultural bank find in the

u.s. for money laundering controls. the broader picture, i will flesh it out for you in a moment. it is still very much a risk on story, except property in hong kong. haidi: thank you for that. yvonne: right, let's move to first word news. n/a goes for hillary clinton two days before the election, the fbi is sticking to its conclusion that her handling of e-mails as secretary of state was not a crime. fbi director james comey says investigators worked around the clock to review a batch of new e-mails, but now found nothing to revise the conclusion. is helping artificial intelligence will help it make a strong comeback after the flawed note 7 lineup. they said the galaxy eight will come with artificial

intelligence features, significantly different from apple and google. by do is looking to raise up to a00 million to help it win costly battle with other chinese internet giants. sources tell bloomberg that the company is looking for at least $300 million. hard rock is preparing to make what it calls a major investment in japan after lawmakers are considering a ban on casinos. the u.s. café and casino chain is looking for partners in anticipation that the legislator will approve gaming resorts. casino revenues in japan could be between $10 billion and $40

billion, with the potential to be bigger than my cow. -- macau. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: thank you a lot for that. let's get more on the surprise increases in the hong kong stamp duties. what kind of impact are we expecting to have from this 15% move? >> this is quite surprising. if you look the response, we also see the stamp duty increase. around, thee ,ortgage rate is also coming up especially the high volume increase. together with the mortgage rate increase in the stamp duty

increase, we see the price coming down. volume will be a little bit less. what can developers do to limit the impact from all this? as you mentioned, transactional volumes did fall off a cliff. the numbersok at for september, the highest level in 10 years. now we have to stamp duty measures. that also means that the margin will be affected. that is the problem. loses out the most and who are the biggest

beneficiaries? you see more interest and finally comes to commercial developers? >> the stamp duty only affects residential purchases. local buyers pay 15%, and foreign buyers pay 30%. this is not affect commercial. permanent residents do benefit from this in some sort of funny way, don't they? >> for permanent residence properties, they can still enjoy low stamp duties. that will be positive for buyers. so much comingu on for us. talking about the stamp duty imposed in hong kong for residential. rishaad: china's top legislature of adopting this article 104, the basic law, hong kong's basic oaths ofrding

allegiance. that: we are told officials will be holding a briefing at 10:00 a.m. decision comes after uncertainty and controversy, protests in hong kong outside the china liaison office overnight. gear, pepper right spray being used, some hints harking back to the occupy movement of 2014. rishaad: right, back to earnings. hsbc could report a sharp fall in third-quarter profit. it is out with the numbers today midday hong kong time. what is the problem here? what is dragging on hsbc? >> what is not dragging on hsbc. , the yuan,rling continued retrenchment, and

reduction of the global hsbc, so there is a lot of pressure. concern over the tur secession plans. 25%nue expected to fall year over year. that $1.7 billion loss from the sale of the brazilian unit, so if you look at the adjusted pretax profit,it could be a little better if you take that out. pound weakness, yuan depreciation, near zero loan growth as well. let's bring up analysts expectations. 24%, one in four analysts say by the stock. a third of them are saying sell.

investec saying the return on equity target of 10% remains of pipe dream for hsbc. rishaad: sorry. please. haidi: pressing question. the conference call, we are looking forward to that. any expectation we will get any clarity? indication that a new ceo expected. investors are hoping to get a clear indication. an indication from hsbc that they will go outside the bank for the new chairman and ceo as well. any clues on that would be welcome news. haidi: thank you for that. we will be watching out for that 12:00 hong kong time. some breaking news out of china. rishaad: a new finance minister there. being appointed at the moment.

also, the departure of the current finance minister. haidi: that was an expected, was it? >> i wasn't expecting that. that just crossing the bloomberg. a real shakeup in the top ranks. >> he is a significant member high of in the central committee. rishaad: this is perhaps another edifice of xi jinping strengthening his own position and the communist party? >> i need to dig through this and find out what the reasons were for the replacement. haidi: certainly an interesting part of this shuffle. let's dig into that. rishaad: all right. thanks a lot. haidi: coming up next, our next

guest says the 2016 u.s. race is the most important election in the past 50 years. on the: we will focus asia-pacific in a moment. ♪

rishaad: you are back with "daybreak asia". news coming through from china on their view of hong kong. haidi: requirements when it comes to the oath required for hong kong lawmakers. also saying china is determined to oppose hong kong dependence. strong words from the official news agency of the mainland. rishaad: at the top of the hour, we have a statement. more details of beijing that stage. haidi: let's get a quick check

of the latest business flash headlines. for could be a record year a global downturn in swiss watch sales. double-digit growth in every market. for a global downturn in swiss watch sales. that: sides with the 15-month decline for the industry. hong kong and saudi arabia suffering the worst slums. we are totally contrary to the market. the market is down, and we are up double-digit, which is great because it means we are gaining market share, in market share is what we are going for. makee more interested to -- gain market share than turnover. of course if you can have both of the same time, it is great. japanese advertising

agency says it is cooperating with investigations after being raided by the labor ministry. the raids were over a possible violation of overtime limits. the suspected breaches came to light after the suicide of an employee. shares in japan's biggest ad agency moving down .6% and a rising market. prosecutorsn investigating volkswagens chairman over the emissions scandal. he is the second board member to be investigated over alleged market manipulation. the inquiry related to when he was the chief financial officer. the automaker is facing a $15 billion settlement in the u.s. over so-called defeat the spices -- defeat devices. to make samsung hoping a strong comeback after its note 7 fiasco. galaxy a will, with

artificial intelligence features, significantly different from apple and google. us-basedcquired a artificial intelligence software company. the stock on the way up 1.2%. let's check in on the chatter on hong kong markets. we have had the replacement of the finance minister. some headlines for the property -- let's checkas in on how the markets are reacting with david. shaping up to be a busy day across markets in china. let me get started with the smaller picture. theme get started with trading debuts across the chinese markets at the moment. it is a different day, same story. every single company the ghost

public in china does the same thing. 44%. have a look at what is happening, then have a look at oil, something that has taken a backseat because of the news flow. morning outs this thatgiers this morning there is some hope for a deal out of opec. eache proposal is that opec countries starting january reduces production, that will last one year and then a review after six months. according to the industry minister of algeria citing a report out of the state-run news agency. we are seeing a pop in oil prices. have a look at brent. this is where you are for u.s. crude. were coming off a 10% decline the week before. keep that in mind. the other story is what has been

happening across property shares in hong kong. 4% decline. new rules in place to curb speculation in the property markets. have a look at my terminal. it is the hang seng property index. there you go. the biggest drop in that index going back to january this year. every single stock on this specific sub indexes on the way down. let's leave it there. still bigger picture a significant amount of risk appetite. haidi: thank you for that. 36 hours to go until polling stations opened in the u.s. investors less certain about the end, -- the outcome.

rishaad: our next guest tells us what he thinks is in store. let's talk about the statement you make that this is the most important election in the last 50 years. what makes you come to that conclusion? >> indeed. at the trade policies that have gone unnoticed because in this frankly toxic campaign in the states, if we look at what the truck campaign is proposing in terms of trade, where looking at protectionist tariffs of 45% on againstproducts, 35% products made in mexico. profound affect on integrated supply chains all over the world. it will affect american jobs. will affect value chains of thousands of subsidiaries based not only in the u.s., but china, mexico.

really is a significant turn of events for us. we have been talking about the impact on trade, the populist vote, anti-globalization sentiment, what is likely to happen to the tpp? both candidates have taken stances opposing this deal. >> the tpp is receiving opposition from both candidates, but not necessarily dead in the water. tpp unfortunately has come upon us at the wrong time in history. the best free of trade agreements we have seen in over a generation. assume that secretary clinton wins the election. will she do that back to the center? possibly. she will be held accountable by

the bernie sanders block of voters that supported her, that are supporting her, but i am confident the tpp is not yet dead. well, that's it, isn't it? optimism,d a lot of particularly from australian ministers we have been talking to. is there anyway to get this through and done before the next president takes the oath of office? session, ie-duck think it would be unlikely. if secretary clinton is elected, i think it would probably reflect poorly on her again with that same block of times, so we have some before the tpp essentially expires. there is a four-year. period.

all bets are off at the moment, but i'm hopeful we can get this back on track. rishaad: stick with this, if you would. more from him right after this. ♪

haidi: let's get back to our us fromtion, still with singapore, to talk about the ramifications for asia and emerging markets as we head into election week. even if we do end up with a clinton administration, these populist concerns, anti-free trade sentiment, these are still there. what does the administration need to do to address the malcontent that has led up to this election in this way? >> yes, it would probably be to address the promises

that have been made or brown infrastructure, both hard and soft infrastructure building in the united states to create jobs , to focus attention away from a lot of this malaise that has really pervaded discussions around free trade, and frankly get the public distracted somewhat on more positive things at home. and of course it is vital to find common ground, to introduce once again hopefully a simple tone, to look for collaboration, to work together to find that common point of truth, as it were. so i think it would be very wise to start there. tpp turn the focus to the and other free trade agreements, millionsindeed create

of export-related jobs ,hroughout the united states and secondary and tertiary jobs where we have production networks and where we have integrated supply chains. rishaad: we only have about 35 seconds. which you say the tpp is the best free trade agreement in decades, but why? >> it addresses issues like transparency. it addresses issues around state owned enterprises. there are labor standards, environmental standards. it is great for small and medium-sized enterprises because it reduces the complexity of the rules of origin, for example. it makes it easier for them to compete and to function in a global economy. rishaad: thank you very much indeed. too,, currency

markets in flux -- still to come , currency markets in flux. rishaad: indeed. this is bloomberg. ♪

:00 a.m. inost 10 hong kong, 1:00 in sydney, 9:00 p.m. in new york. i am rishaad salamat. haidi: i am haidi lun. this is "bloomberg markets: asia." ♪ rishaad: asian stocks climb with the mexican peso, while havens fall has the fbi absolving early clinton over her e-mails. aidi: beijing intervenes in hong kong legal dispute hours

after the biggest anti-china protest in two years. rishaad: big falls for hong kong property sox -- stocks. two staff arrested as rallies in seoul, korea keep up the pressure on the president. rishaad: having a look at what is going on out there. changes at the top of the finance ministry in china. we are expecting this ruling in hong kong with regards to the basic law. looking at that indeed. haidi: sneaking in these headlines as we are heading for a very busy week for the markets. lou jiwei is no longer the finance minister. he has been in that position for about three years. we are hearing this is part of a wider reshuffle. the man who replaces him used to be the head of the tax

administration. just waiting to hear from the national people's congress standing committee. it should be making a statement in the next few minutes about the interpretation of hong kong's basic law, which is on the back of protests taking place in the territory overnight. by them ascision well, particularly article 104, taking an oath of allegiance to china. haidi: let's look at whether this is moving the markets. the main theme moving markets is that letter from the fbi to congress. what a difference in fbi letter can make. the s&p 500 soaring, up by 1.2%. you're seeing dollar weakness against the peso.

the peso at its highest level since february. investors selling out of safe haven assets as markets reinterpret this positive lead to hillary clinton. we are seeing in a a lot of risk on sentiment coming through. kong, those developers coming under significant pressure. the hang seng is higher by .4%. energy and casino players doing good work, but still holding around that three-month low. weakness we have seen coming through in develop and stocks playing into that market. also, a switch out of the shanghai market, but we this and safe havens, weakness in the yen, pushing the nikkei higher by 1.3%. through fromoming japan's equity market. solid moves from australia and new zealand as well. new zealand has been trading at

four and-month lows. it is up over 2%. only two stocks in the that index of 50 are in the black. , son the red, i should say certainly risk on movement coming through. the yen weaker by one person at the moment against the dollar, 104.06, investors moving out of bonds, safe haven assets back into equities on the back of this fbi letter. china's national people's congress has been , giving itst this interpretation of what the hong kong basic law is, related to oaths of office. haidi: it triggered protests over night and sunday. they broke up after police and right gear use pepper spray. what are we hearing about these statements that are being made?

we are seeing reports from the official news agency saying that china is determined to oppose hong kong independence. top legislature has adopted an interpretation of article 104 which refers to the oath taking and swearing in process of lawmakers in hong kong. we are looking for more details on this. also, deals with the hong kong independence issues. from will be a briefing officials on a range of topics, including this one. the spokesperson of the hong ,ong and macau affairs office the interpretation demonstrates the governments firm determination and will in opposing hong kong independence, so coming strongly down on that. china has said that barring protest an independent lawmakers

is in line with law. in the law, it declares that hong kong is an inalienable part of china. it discusses the oath taken in which lawmakers have to swear allegiance to the hong kong special administrative region of the people's republic of china. this relates to two young officers whose oath to were voided. they are part of the new crop of young activist lawmakers involved in politics in hong kong called local us. they tend to support the idea of self-determination, something beijing has come down hard on. rishaad: right. issue has sparked protests overnight, quite reminiscent of the protest movement, occupy

movement, a few years ago. rosalind: we saw protests overnight getting a lot more heated. we saw clashes between police and protesters. police were wearing right gear. the organizers of the event said to china's marched hong kong liaise in office in the western part of hong kong. police using pepper spray trying to keep protesters from breaching police lines. protesters were chanting hong kong independence. yellowre holding umbrellas, which came to symbolize the occupy protests of 2014. four people were restedn those overnight clashes. there had beenn, what organizers called a largely peaceful march in which organizers said 30 people had been taking part. of thes still one

largest demonstration since the protests of 2014. here you see the pictures of the march which happened in the afternoon. was that some protesters split off and went to the liaison office, which was how it got more heated during the course of the night. started with beijing's saying it would interpret hong kong's basic law, which it has now done. we should be getting more on what that means for hong kong lawmakers. thank you very much indeed for that. the latest on these protests in hong kong overnight and what else has been happening politically with beijing and that ruling that hong kong s must belders oath completed. haidi: let's get over to first word news with paul allen in sydney. a boost for hillary two

days before the election. the fbi sticking to its conclusion that her handling of e-mails as secretary of state was not a crime. the fbiter to congress, director said investigators worked around-the-clock the clock to review a new batch of e-mails, but they found nothing to change the bureau's earlier conclusion that clinton had not committed a crime. may says that the brexit timetable won't be altered by last week's constitutional ruling. the decision has worsened divisions in britain with conservative newspapers blasting high court judges. theresa may says the government has a strong case to appeal the ruling. she called on opponents to accept the results of the referendum. >> i think what we all have to is that we had a vote on june 23, the british people voted to leave the european union. the government is now getting on with that. theresa may is in new

delhi on monday to lay the groundwork for a post-brexit trade deal. she is by 30 business leaders. the u.k. can't open formal trade negotiations and tell the start of proceedings to leave the eu, but sources say that theresa may will use talks with primus to her narendra modi to explore what the future relationship might look like. south koreandes to president have been arrested as protesters call for her to resign over and influence peddling scandal. 18 is accused of leaking controversial documents. aide is accused of leaking controversial documents. president park has yet to be questioned by investigators. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: thanks for that.

when it comes to china's runaway property prices, there seems to be some traction. rishaad: let's have a look at this with tom mackenzie having a look at this. what is the story here exactly? curbs ineems that the some of the first-tier cities are starting to bear fruit. october, data for sales for ames down 41% in beijing year on year. in shanghai, down 18%, and traction's -- transactions in smaller cities were down 50%. the context is these curves have been put in place by a officials in largely first-tier cities to deflate property bottles -- bubbles, making it harder for residents to buy multiple properties, increasing down payments, trying to ease these prices, and now we are seeing a

drop off in sales volumes. there is an economic impact as well. morgan stanley says the curbs byld reduce gdp and 2017 0.6% and 1%. what we will be looking for is the scale of any property price decreases and the size of those decreases. those are what people will be looking at. for avernment hoping goldilocks balance, mild reduction but no big shocks to the financial system in china. also seen hong kong raising the stamp duty when it comes to property purchases here. how much of a role have mainland buyers had in pushing up prices? >> they have had a role. they are seen as a hedge against the weakening yuan. we've seen the flow of money from the mainland into hong kong. it has been one of the reasons why authorities and the territory have struggled to put a cap on prices since 2012, now

raising the staff duty from 8.5% to 50%, likely to dampen that flood of money from the mainland. some predict sales finds in hong kong to fall as much as 70%, and prices could fall by as much as 8%. it is likely of course to make those mainland buyers have second thoughts about the hong kong property market. developers in hong kong feeling the pain from this this morning and the early trading. we have seen a string of downgrades. if you look at some of the developers, they are off this morning, as our others. is a pretty miserable morning for hong kong developers with this stamp duty hike. rishaad: thank you very much indeed. ahead ofill ahead, the

what.s. election, we ask is expected from the eventual winner. rishaad: the long awaited stock connect, who stands to benefit? ♪

rishaad: a quick check of the latest business flash headlines. japanese advertising agency is cooperating with investigations after being rated by the labor ministry. the raids were reportedly over a possible violation of overtime limits. the suspected breaches came to light after the suicide of an employee. shares down by .2%. agricultural bank of china hit with a $250 million fine in the u.s. for hiding transactions. ranking regulator

says the vendor of steel deals by middle eastern, russian, and chinese clients, and tried to silence a compliance officer who raised alarm. this comes after the bank was ordered to over all its money laundering protections. takata raising full-year profit forecast down to improved results. expecting it to rise to $194 million. they had a net loss last year. takata is shortlisting bidders for a sale. shares fell to a five-month low on friday after concerns it would file for chapter 11 protection after losing one potential buyer. tests, ther more link between hong kong and shenzhen is due to launch later this month. preview.let's get a

tell us about it. you must have seen how the test went. >> the tests have been doing well. we had a first batch the weekend before. this is the second batch of testing. everything is going well, so an announcement could be soon. haidi: do we have any more regarding the deadline this month? >> nothing that i have been privy to, but the technical tests have been going well. the formal announcement will come this year, november rather than december. rishaad: we have seen what the shanghai-hong kong connect has done. the jury is still out. is the shenzhen-hong kong connect likely to be more of ago given this is the entry into china's new economy? >> i would think so.

by including the shenzhen connect, where including a hundred 80 stocks for international investors, 15 trillion renminbi of market cap to invest in. if you look at the shanghai stock exchange, less than one third of shares are privately owned enterprises. in shenzhen, three quarters are privately owned. more importantly, they are in the new economy sectors, technology, internet, health care. this is the future of china. haidi: the new economy is exciting and dynamic companies, but these smaller companies are prone to attracting speculative flows. what is the danger of the repeat of the rise and fall of the roller coaster of shares we saw a year ago? >> the chinese government has learned lessons over the last year in terms of how and why the

market reacted the way it did last year. we would not expect that sort of turmoil going forward. you are absolutely right. this jen market is dominated by retail, much more so than shanghai. isthe shenzhen market dominated by retail, much more than shanghai. they have to pay extra care to a retail dominated markets. a new set of stocks is on. you have to search for new clients. who will you be targeting on that side? >> for ourselves, institutional investors. very much so international investors across the board. we are now introducing shenzhen, some not only shenzhen and shanghai, but now completing the picture.

it would be a across the spectrum. it completes the picture when it comes to the stock connects. if you look at the bigger picture of china's opening up, is it papering over the structural issues? reasons it gave for not adding h shares last time was accessibility, transparency, flexibility when it comes to the chinese market. do expect that to change? >> definitely so. if you look at all the events and announcements post the june report of msci, a lot of measures have been taken. for instance, the msci report referred to three particular issues that troubled them by delaying the inclusion.

they were first of all equity quota and the repatriation ,ifficulties and the 20% limit and secondly is the number of suspended stocks in the market that happened last year, and thirdly is the three approval of any product post inclusion. if you look at the announcements over the last few months, there is a drastic decrease in terms of suspended stocks. now it is less than 5%, quite normal. when you look at the alignment, the evolution of the quota announced with the shenzhen stock connect, this has improved access to the markets. that ise only issue left to be resolved is the preapproval requirements, which that we could expect

an inclusion soon, even before the review in june. shares: that would be a mainly, wouldn't it? ultimately wehat will look to the abolition of h, but itum of a over will be a long process. we are looking at markets that are not fungible, so it would be a long process, but ultimately looking at something like that. haidi: manage expectations in the meantime. thank you for coming on about that. rishaad: right, lots of headlines coming through about hong kong protests and article 104, the basic law, the interpretation out of beijing. we are looking at that and more right after this. this is bloomberg. ♪

watchingu are "bloomberg markets: asia". . let's get back to the tensions we had overnight. some lines from china. haidi: china is barring independent supporters from becoming part of the legislature. legislator hasop that hong kong people who advocate independence cannot hold office. about the oathg taking process article, 104, hong kong's basic law. beiceholders will disqualified if they refuse to take the oath, and will be disqualified if the oath is in safir. the oath must be complete.

hong kong's public office holders will be disqualified if they don't do all of these things and refused to swear allegiance to hong kong and basic law. two relates to the case of young lawmakers. they are pro-independence or support self-determination for hong kong. they were voted for by the public, but when they were supposed to take their oath, they were voided because it was considered that they insulted china. they said hong kong is not china and miss pronounce the words "for china." china said it would discuss article 104 and make a decision on it, which it now has. proa says that barring

independence lawmakers is in line with the law and deals this typically with the issue of independence for hong kong. tech to you. rishaad: thanks. coming up -- haidi: china's minister for international affairs and finance industry about tokyo's expectations. ♪

,l

rishaad: it is 10:29 a.m. in hong kong and beijing. ruled that anyone who supports independence for hong kong cannot hold public office. was its second unilateral interpretation of hong kong law since 1997 it came after police scuffle with protesters. hong kong property stocks plunging after a series of downgrades. prices are expected to plunge after a surprise move. property executives see prices falling between 5% and 8% in the

next month. on friday, the government announced plans to raise the stamp duty to 15%. of the most sort since february after the fbi reaffirmed that hillary clinton's e-mail use as secretary of state was not a crime. director james comey revealed the decision in a letter to congress. the mexican currency has been a bellwether for the campaign. u.k. prime minister theresa may says her brexit timetable will not be altered by last week's constitutional ruling. it exposed the divisions in britain, with newspapers blasting high court judges. theresa may says they have a strong case to appeal the ruling. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: this is "bloomberg

markets: asia." i am haidi lun. rishaad: i am rishaad salamat. the lunch break over in tokyo. juliette: the nikkei going on that break pretty strong, up by 1.4% as the yen is at a one-month low, risk on appetite today across the asian region. u.s. futures also rising by more than 1.25% after the fbi stuck to its guns, saying that clinton's use of the e-mail server was not a crime. we are seeing the all strange sharemarket up by 1.3% with strong earnings reports coming through. new zealand rebounding from those lows we have seen, still holding at a four-month low. the index up by 2% after a week of declines. also some upside,

although property developers under pressure. elsewhere, generally positive moves coming through the region. let's have a look at the hong kong property stocks. that shock move coming through with news that stamp duty will be increased to 15%. significant selling from property stocks listed in hong kong. some of the other stocks also being hit hard. off.orld development also looking at some positive movers in the region, earnings season. unchanged full-year cash profits. westpac of by over 3%.

up by over 3%. rising on the yield the risk appetite story. two basisr note up by points. safe havens being sold out of today. a big rally in most equity markets. rishaad: thanks a lot for that. earnings release, it could report a sharp fall when it reports midday. rishaad: we are on the case. what's not dragging on hsbc? >> they had the big potential reshuffle, the headquarters, which they dismissed, but they are shaking their global footprint.

80,000 jobs lost or moved around. ande is also the brexit potential recession and u.k., and weakness in the sterling affecting them. there is a slowing economy in china and a depreciating yuan. the sale of their unit in brazil, taking a $1.7 billion loss. pretax profit expected to fall billion..4 revenue could also fall 25% year and the third quarter after second-quarter profit fell 45%. revenue was down 15% and the previous quarter from a year ago , so there is some pressure. year to date, the stock down 6%. in four analysts we surveyed that cover hsbc say by uy it. a third of them say sell the

stock right now. haidi: we are also watching details about the secession plan. the people who have guided hsbc through this difficult restructuring should be stepping down soon. we expect that chairman to step down in 2017, followed by the ceo, so in the conference call investors would hope that there would the secession planning for who would take over those positions. signaled that they will break from tradition and perhaps go outside the bank to get the next chairman. rishaad: thank you very much indeed. shares in westpac now. haidi: up about 3%. the bank announced full-year profit in line with estimates. let's get over to paul allen in sydney? how did the numbers stack up? the markets seem to like it.

7.82 billion dollars, a shade below estimates. well, so noyear as change to the on your profit, but a much tougher environment now. $.94 comedividend was of full-year payout to $1.84. the real headline for westpac is that it is walking away from this return on equity target of 15%. saying low-interest rates, higher regulatory cost, increased capital requirements mean that target is no longer realistic. it was set by his predecessor, so he feels no obstacles and walking away from it. 14% inget is now 13% to the intermediate term. the market climbing on what it sees. rishaad: tell me something. we have to government going to

update the budget soon. saying that triple a credit rating loved by the administration could be endangered danger. why is that the case? to do withall has the midyear economic and fiscal outlook do sometime before christmas. the government has been vague about when it happens, but generally it signals a budget blowout. the deficit was just a shade over $37 billion. there is always an expectation that it gets a little wider, so that is what blackrock is talking about. they say it could be the catalyst for s&p to cut their aaa rating. the australian governments have been serial under delivers, and if they persist, that could test the patience of the rating agencies. haidi: we do love that release.

what does he mean when he says the government just keeps under delivering? there are a few factors, some of them beyond the government's control. for example, commodities prices, they have become weaker over the past few years. there is not a lot they can do about that. a comems of trade have weaker, but there are political obstacles as well. malcolm turnbull made that gamble to call an early election, trying to get a more compliant parliament, and he is now left with a one seat majority and the senate more divided than ever, so that makes economic reform very difficult. in that respect, the all trillion -- the australian parliament is its worst enemy when it comes to protecting the aaa. coming up, thousands of protesters take to the streets demanding the resignation of the south korean president.

we will ask whether she can continue to resist. this is bloomberg. ♪

rishaad: a quick check of the latest this is flash headlines. but i do looking to raise $500 million for its waimai food delivery unit. thates tling bloomberg the company is looking for at least $300 million. they're using scooters to supply starbucks coffee to sushi. it is competing with alibaba and tencent. haidi: hard rock preparing to make a major investment in japan after lawmakers propose reconsidering the ban on casinos. the ceo says the u.s. café and

casino chain is looking for partners to bid for a license in anticipation that the approvedre will gaming resorts. be between $10 billion and $40 billion. rishaad: the global downturn and swish watch sales. the chief executive telling bloomberg in singapore that he is saying growth in every market after a 15 month decline for the wider industry. >> for us, we are totally contrary to the market. the market is down, and we are up by double digits, which is great because it means we're gaining market share, and market share is what we are going for. we are more interested to make and gain market share than turnover.

of course if you can have both at the same time, it's great. german prosecutors investigating volkswagen's over the emissions scandal. second board member to be investigated over alleged market manipulation. inquiry relates to the time when he was the chief financial officer. ae automaker is facing potential $15 billion settlement in the u.s. over at so-called the fee device. rishaad: a scandal engulfing south korean politics. the south korean president fights to stay in power. haidi: that is because south koreans are split on who should replace her. we were talking about this last week. even the opposition is not ready for her to step down. >> in fact, there are a lot of calls for her to leave.

saw massivekend, we protests in seoul, korea, 50,000 , policing 200 thousand people were on the streets, so the call for her to leave is clear. the question is who will replace her. opposition party individual members are saying she should go, but the parties are not going that far actually. rishaad: the thing is how likely is it? we see no signs of making a step towards leaving or stepping down. many see her staying on for the time being. if she resigns, she loses her legal immunity. that allows prosecutors to charter right away, so she has a legal incentive to stay in power. the impeachment process would take months. are months to go before

that process can happen as well. haidi: if an early election is called, who are the candidates? polling suggests ban ki-moon. he still has to finish out his join reallycan even if she resigns immediately. then second to him is the runner-up in the last election, the former leader of the main opposition party there. rishaad: ok. way, including a look at tpp, japan's relationship with that particular free trade agreement, and the u.s. elections. we will speaking to the vice finance minister and the minister for international affairs about what the u.s. election outcome could mean for japan. that is up next on "bloomberg markets: asia".

♪

haidi: here we are to bring days away from the u.s. elections. uncertaintyorning, had investors fighting in the yen. rishaad: gaining some 16%.

let's get more from the vice minister for international affairs for japan's ministry of finance. first of all, i know you will not comment on this selection -- firstly in terms of who will win. what would you like to see out of the next administration? >> thank you. it would not be appropriate to make any comments on the outcome of the u.s. presidential election. i was thinking, of how to maintain the momentum of free trade and free capital transaction, it is really significant. which has of the keys here intant impact japan.

decided that ttp itself will be discussed. i do hope they wl approve this as quick as possible. japan would be the first to complete the necessary domestic procedures to prepare. i do hope the u.s. and other participating countries will join us. the tpp has been domestically unpopular in the u.s. and japan. are you optimistic it will get over the line? yes, in japan, when the

administration decided to participate in tpp negotiations, then the public supported it and the administration got approved. there are of course pros and cons. generally speaking, strong support his seen in japan for free trade momentum. absolutely, and this is the great unknown at the moment, what happens next. is there a plan b if tpp does not get approved? in the u.s., you mean? rishaad: no, i'm saying for japan. actually we never

discussed the possibility that we don't get it through, so we seriously help that will happen as quick as possible. a serious discussion in the lower house is going on last week and this week, so i am not worried t much about it. about how worried are you the trajectory of abenomics given that it seems to have been stagnant? we have that initial impact on the stock market. it looks like the data was thinking up, but it looks like it is now down to structural reforms and we have not seen a lot of progress on that front. yes, thank you for asking that question. actually, for the first two and , itlf years of abenomics

was eye-catching in the sense that the stock markets performed well and the yen depreciated, but if you look at the most recent data here in japan, for example, japan's real gdp growth rate for first and second quarter of this year is above potential, so i think the stillse economy is performing in terms of economic growth. rate andss unemployment rate is as low as two point 0% in september, the lowest -- as low as 2% in september, the lowest in the last year. all in all, i think the general trend is encouraging, but at the same time, we recognize the fact that private consumption is

subdued and private investment activity has not been encouraged sufficiently. a would like to make it so-called virtuous circle where the strong profitability of the corporate sector and market conditions could bring a sustained rate hike, which would encourage people to spend more, then we would in turn encourage investment by the corporate sector. it is important for the success of abenomics and to kick off that virtuous cycle, two things aren't ported. one is to continue to hike. negotiations every year around springtime, so next year is very crucial. in order to improve our gdp growth rate, we need to encourage other people to

participate in the labor market by conducting necessary performed -- necessary reforms. rishaad: you have been trying to do quite a lot of that. corporate japan is sitting on a lot of cash. notthing is they are spending it and making investments into the economy. get them to boost wages. get them to invest in the country. how are you going to get them to do that. ? >> yeah, thank you, thank you. actually if the japanese corporate sector is feeling the market is shrinking, so they better and best -- better invest abroad. at the same time, we are enjoying a huge amount of income

surplus. the corporate sector has made profit abroad, so they have cash in their pocket as you mentioned. i would like to encourage them to invest more and pay more salary to their employees. in order to do that, the trick is really that as long as they expectationswth long-term, it is difficult for them to invest more and pay more to their employees. for the lastdset 20 years has been there. race are very low, around 0.3%. int needs to be improved order to encourage people to act more. haidi: you talked about the

inflationary mindset. part of that is currency. if we get a donald trump presidency, we get a markedly stronger yen. what would it take for the government to intervene again? possible fors not me to comment on potential intervention operations. communicatedg7 stated clearly the fiscal priority -- rishaad: we have to leave things there to get to a break. thank you so much for joining us today on "bloomberg markets: asia". ♪

>> we are in the middle of the asian trading day. >> china bans independent supporters and -- >> a new finance minister is named. cutting tax seen

sales. up andks are on the way the fbi of dissolves hillary clinton. >> there is volatility in the currency market. there is a relief rally with the election getting closer. the risks were taken off of the fbi hasd cleared clinton of wrongdoing. you about -- >> you are looking at three and you see the yields on the way up.

it is hong kong time and we are see about 1.5% and you can this is poised for the best day. how long will this last? hard, as we make our way throughout the rest of monday. here is the first alert news. >> it has been a boost to hillary clinton with the fbi seeking to the conclusion that her handling of e-mails as secretary of state was not a crime. investigators worked around the clock to review e-mails and found nothing to change their decision that clinton had not committed a crime.

a timetable will not be altered by a constitutional ruling. measures are blasting the judges and there is a strong case to appeal the ruling. the parliament must approve the negotiations. iswhat we have to remember that we had a vote in june and a majority of the pretty people left the european union and the government is getting on with that. missing chief profitability targets. on equity is no longer realistic. australia added $15 billion in capital and made regulations with returns.

australia could lose the top-notch credit rating next month, if the independent advisor review shows further deterioration. australia is one of the 10 nations. this is bloomberg. national people's congress has given an oaths takenon on by public officials. morning, the police use pepper spray. >> let's have a conversation following this developing story. what are we hearing? china has ruled that this cannot

hold and the community debated law,issue in the basic which is a swearing-in process for those who want to be is froms and this one taking the seats and it is a rare intervention into the hong people are becoming increasingly concerned about the legal affairs. there has been a dispute with the local lists who come from they had the oath taking process the first time

support independent self-determination for hong kong. they say that this shall not be rearranged. -- is in line with the law. that it saying demonstrates a firm determination and a will to oppose hong kong independence. they are showing where their mind is, regarding this. , weaking a few steps back anda recap of overnight this was sparked by the same issue. >> exactly. , you could lawmakers see the chief executive actually word thatthere was

china would interpret the beenle here and there have protests outside of the hong kong office and we saw police and protesters scuffling and trying to keep the protesters from breaking through the police lines and people marched to the office with some of them chanting for independence. the event is getting quite heated, as the evening progresses. are largely peaceful withsts in the afternoon some 13,000 attending. the police say it was more like 8000.

protesters split off and moved to the liege on office. and, of course, we will get you details when they make themselves. this is part of what may be a wider reshuffling. >> we have our correspondent following the development and what exactly does this mean? >> it is interesting times and we are trying to go through the tea leaves.

what we know about this is a and thatetary-general made the key aid to the premier league. this was seen as a protege of a and, what thiser means for the chinese fiscal policy, we heard from the economist here and he told us that he does not see big changes in government policy and sees neutralcy remaining in with the government continuing to aim for the gdp target.

greater reforms in that area. there was a change in the finance minister and the with the civil affairs ministry and a shuffling of the debt. the party congress where we expect to see a new lineup in china. >> good one. >> we are watching the hong kong property developers under pressure this evening. they also cut to neutral these properties. what does this mean and how are

developers sharing this index? >> the investors are spilling out and we want to show you a few of the big movers. you were mentioning the downgrades and we had downgrades there is this down almost a .7% down. look at some of the better movers in the region.

it did say it would cut the thereability target and is the regional index and the topics. biggest game since there is a few positive movers coming through. futures rally and the mexican peso rally. clinton was cleared of any wrongdoing with the e-mail service. it seems more likely there will be a clinton win in the theidential election and

nikkei want on a lunch break today and held at a one-month low. >> all right. we are going to get the latest on the political crisis wrecking the country. >> this is bloomberg.

>> all right. it is time for a check of the headlines. they say they are cooperating and therenvestigation is a possible violation of overtime limits.

biggest adage. delhiresa may is in new to lay the groundwork for a post brexit trade deal. open formalnot trade negotiations until they eu. exited the is exploringister what a future relationship might look like. opposed doubling ask weres and the designed to boost the pay ratios andthose with the tax flows there was not a complete picture.

monthpping the most in a .nd the dollar rebounded let's bring in the portfolio and these are interesting times, politically. deciding have a court on what the relationship would we have a bunch of china data coming out and how do these mold? ? >> the answer is that times are changing.

this path is accelerating and it is changing. at the top of the list is water and how we will fix that for china to continue to modernize. adding the aging population in china, how do we as investors the changes to the elderly. area where they this isew capital and

it is ae growth is and great opportunity with the are looking ate what happens in china and century. the next area that youop prefer and you have consumer infrastructure. which countries are you looking at? china will buy more automobiles.

makes me really think about moving the headquarters to beijing, because that is where the action and the demand is. only mention a couple of auto companies. there are others that are going to do more business in the prc. >> we have a lot of multinational fronts and we have a lot of people who get smacked danger ise as the there of chasing the dragon. not just investing in china.

it is not the steel industry. >> everybody knows this question. if the pollution abatement doesn't work and if there are ,ew forms of energy not working just take the rest of the world. i think you will find that people are under weighted in -- part of the world and >> quickly, shares? >> we could talk adrs. shares of the way.

hey, we want to get your weughts on the election and want to get your take as an investor. thank you. we will revisit this in 20 minutes. a bit later on, we have the report cards. that is next on bloomberg. ♪

>> welcome back, this is markets asia. >> earnings are taking a sharp fall. stephen and his following this

story. what is the problem? externally,y and you have sterling go down a bit and there is a rising specter of whatrforming loans and billions is the $1.7 loss and it is continuing to withk the global footprint near zero loan growth and we return on equity and we havebout 10% hsbc and of the analysts we have about 1 in 4 say

buy. the rest are saying to sell. is about 25% in revenue. >> we need to bring in the graphics here and we need to get games and a lot of people are hold and to sell. is there clarity in the conference calls? >> i hope that we get some sort of clarity and it looks like they is some clarity and

down from stuart gulliver and we do not know what the plans are outside of the bank. >> we will be back. relief rally kicking off in sydney. higherseeing the relief in sydney. >> take a look at what is happening. back here in hong kong, we have the pressure that we are seeing

-- >> the fbi reaffirmed their view of hillary clinton. this is bloomberg.

♪ haidi: the latest first word news. china has ruled anyone who supports independence for hong kong cannot hold office. its secondn was only unilateral interpretation of hong kong law since the returned to china in 1997. scuffleafter police with protesters following the biggest anti-beijing rally in two years. on the rise after the fbi reaffirms hillary clinton's e-mail use was not a crime. director james comey revealed the decision not letter to congress.

yen and the gold are falling the most in a month on signs that donald trump's campaign is faltering. china has replaced finance minister lou jiwei. the standing committee on the people's congress announced the change in a one line statement without giving further details here it the 59 .ou the 59-year-old is an important e.d global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. the yen holds that its lowest level in a month. assets being

dumped today. you are seeing a lot of pine buying into-- equity markets, and the mexican peso is rallying, all signs we could see a clinton president. you are seeing risk on across the region. have a look at hong kong. isn though the index rebounding, still quite a bit of weakness in the property sector. a number of downgrades from bank of america, merrill lynch and others after it announced it would increase the stamp tax to 15%. elsewhere, upside coming through in shanghai, up by .3%. also looking strong.

a good day for regional equity markets, but safe havens getting dumped. gold down 1% at the moment. a pretty good start to the trading week for asian markets. david: welcome back to "bloomberg markets: asia". more on that surprise increase in the hong kong stamp duty. on homeact will it have prices and transactions? there is a lot of speculation on what impact it will have. the price recovery has caused the government to tamp down investment demand. increase may have

a slight impact. increase,ortgage rate it may hamper demand and price. can we get into my bloomberg just to show our viewers, this massive drop across stoxx in hong kong -- stocks in hong kong? many people are asking what i can do to limit the fallout of this new rule. to get more try consider the primary market. that means the margin will be impacted. haidi: in terms of silver , could this affect the

sales of nonresidential properties? >> it could be. this time the stamp duty is only on residential properties. otherld travel to investments, offices, carparks. that means there is another angle to this. haidi: talk about sticker shock. t the marketho is. that's a new story we will be tracking over the next few days. one that keeps on giving is south korea. haidi: a south korean soap opera. david: it has taken a turn as the president fights to stay in

power. south koreans are split on who should replace her. that might hopefully save her job. haidi: joining us now for more is our east asia government editor. what ishe latt out of korea? >> we saw massive protests in seoul, korea over the weekend. said 50,000 people. organizers said 200,000 people, all chanting for president park to step down. there is a clear call for her to leave. we also saw two of her close aides arrested and charged linked to the scandal, so it is getting ever closer to her. haidi: who could replace her? >> the leading candidates are split. polling shows that no candidate has more than 20%. there is a long list of people with a small percentage. leading is the un's secretary-general ban ki-moon.

he is the front runner in the polls now, narrowly over the head of the main opposition party there. he has about until the end of the year before he steps down at the united nations, and then can rejoin south korean politics if he wants. david: how likely is it she will step down? >> many say she's not going anywhere anytime soon despite a 5% approval rating. there are a couple of reasons. the biggest is that this investigation is ongoing. she loses herown, immunity and she can control the investigation because someone else will have the reins of power, so that is a big win there. the other is impeachment proceedings will take a while. it just doesn't happen overnight. it is subject to a court ruling, so that could drag on. so far, were seeing no

indications that they are planning to do that. david: good one. thank you. the latest on the south korean opera. haidi: opa of a different sort. 2011 pledge of a to the region and the tpp may be heading to the scrap heap after the recent wave of anti-global sentiment. how will the two presidential candidates engage asia? all sides, trade has been a hot topic, and the candidates have talked tough. >> i will stop any trade deal that kills jobs or holds down wages, including the tpp. we will stand up to china and keep america out of tpp. dismissed that as

populist rhetoric, but others worry it could halt asia's rise among america's top trading partners and are calling on washington to support the tpp. >> you have put your reputation on the line. it is the big thing that america is doing in the asia-pacific. canada's views very greatly. donald trump has found his slap tariffs on imports and label china a currency manipulator. market point of view, it would be damaging it donald trump were to win. >> the philippines would be the biggest loser. it has the largest export exposure and southeast asia, and a third of remittances come from the u.s. a clinton presidency could push asian trade to the next level. she helped obama redefined the relationship with asia, traveling to the region twice as often as the previous secretary of state. clinton's voting record while in

congress shows she leaned in favor of looser international trade, including deals with australia and singapore. u.s. andde between the asia has jumped 50% in the past seven years, once a new president steps into the white house, the future could be very different. we will have more analysis on the u.s. elections. clintonat a trump or presidency might mean for asian trade and investment. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. takata after raising its full-year profit forecast climbing 8.31%. they expect net income to rise to $194 million compared with a net loss last year. takata is currently shortlisting

bidders for a sale. fell to a five-month low on friday after concerns that it may file for a chapter 11 bankruptcy in the u.s. bankruptcy will make it difficult for the business to continue. this is not just in japan, but globally. not announced anything about our u.s. unit, so i'm not in a position to talk about their. david: german prosecutors investigating the volkswagen chairman, the second current board member to the investigated over market manipulation. the automaker is facing a potential $15 billion settlement in the u.s. over the so-called the feed devices. ofdi: the agricultural bank china has been hit with a $215 million fine in the u.s. for

hiding transactions. it is said the lender of secure deals by russian, middle eastern, and chinese clients. the v comes after two months -- vee comes two months after it rdered to overhaul its transparency. david: asian nations will be able to stand up to any sort of followed from the u.s. presidential elections. >> i think markets will rally because they have sold off if clinton gets in. if donald trump gets in, the will be a selloff. i think the region welfare relatively well. you have seen that recently.

-- europether markets and other markets have been more effective. i would expect asian markets to hold up. haidi: tony nash says that while change asia'sould relationship with the u.s., a clinton presidency would be an extension of the obama years. with a clinton presidency, i think that trend continues because the kind of much lauded asia has been hollow. with trump, comes a chance to recalibrate those relationships. the sameht not be expectations, but a number of asian countries are looking for a recalibration of the relationship with the u.s. a different political regime brings that opportunity. however, mark mikkelsen says it does not matter who wins

, tpp and the pivot to asia might be in trouble. >> if trump wins, it is difficult to say because he has not been as clear other than opposing what is going on. an office, you never know. if clinton wins, i think still it would help some people settle down a little bit, specially much of asia. at the same times in terms of actual policy, i think we already have issues the matter who wins. i think the pivot to asia is probably in trouble little bit. word fromt is the asia on the u.s. presidential race. haidi: well, joining me and here in asia. , s&p 500 gains ahead of in the u.s. election.

these are not historic times. we are following the latest polls. >> when have we had to bring candidates like this? i am speaking for myself and not for my firmer bloomberg. wasr, my first campaign 1964, i worked for nelson rockefeller. that is my background. to bring flawed candidates, and the vast majority of americans are very upset about it. it is a little late. so we are going to have probably a one term president. today's revelations, if you will, does that hide or do away with the clinton foundation or lackdonald trump's total of preparedness for the job? i don't think so. i think we will get a new president tomorrow, and he or she will be there for four years, and we will get on with it.

the only thing that is concerning to the vast majority of thinking people, i think, is the supreme court, because when you're appointed to the supreme court, you last a long time, not four years, so that is a big problem. we have been moving us a country a little bit to the left for ,ecades, since roosevelt really and what a clinton white house is going to do is probably move us a little faster in that direction. the trump phenomena, you know, who knows? servinguth, self showmen -- >> is it about the manner the movement? >> that is a good question, the heart of it. backgroundsanders along with trump is in opposition to the establishment that we have so gerrymandered congress. we don't seem to

be able to get together and make compromises the way we used to because we gerrymandered congress to the point that people can't compromise. they are extreme to the left, extreme to the right. >> how do you see that playing out in the polls? do the bernie sanders supporters not voted all? >> it will be interesting to see what the turnout is the kazaa think a lot of republicans won't vote for donald trump and a lot of democrats won't vote or clinton. people are not pro-one of them. i can tell. >> i would say that the campaign has been you have to vote for x because you don't want y. that is a terrible thing. we don't have to vote. i've voted in the primaries. i've voted for what i thought

was a moderately conservative, experienced gentlemen. no traction, didn't get the nomination. i'm out. inas an australian singapore, i find it extraordinary that you don't have to vote. we are going. way is this the end of democracy in the united states as we know it? democracies have lasted historically 200 years. we are 250 years old. is the clock ticking? i don't know. we saw this with brexit. how many of us thought that brexit was going to happen? none of us. reflectiona broader of this revival of the populace vote, and that will be there after the election, next year, two years from now. as an investor, how do you position yourself? investor, not a traitor, so short-term moves are opportunities rather than anything else. the comment that was made a few

minutes ago, the tpp will be dead, i disagree with that. theink it is too good for 90 states and asia, so i think that saner heads will prevail and it will be slightly different than what obama came home with, but there will be a tpp agreement in the next couple of years. >> is there going to be a china agreement, nafta? >> nafta is alive and well. >> someone doesn't like it. >> a lot of people don't like it because they don't understand it. what is happening in the nine states as we are having a huge change in who americans are. it used to be a white, male country, and it is not anymore. white males are part of it, but get over it. you have competition. , womene people of color in senior roles in business and government, and get used to it. that is the way our country is

going. we are going to do things to make the united states better. we have to rededicate ourselves and figure out what our priorities are. our priorities are ,nfrastructure, pharmaceuticals education. the affordable care act was a good start. we have to fix it because it was lousy legislation. there is a lot to be done. as a global investment manager, i find this exciting because so many rings are changing, and it is my job to spend a lot of time on airplanes talking to you guys and the companies all over the world as to where we should be. >> who is going to win? >> i don't know. >> between your heart and mind? >> i don't know. i'm not going to do that. before this morning, i would've said well, he might win.j after today, i don't know. i don't know what the time lag

is between james comey saying -- the clintonaying foundation is a piggy bank for the clinton family. i don't know. boil downely it would to how motivated you are as an electorate. i think we will get pretty high voter turnout. >> i disagree with that. i think we will have historic lows. >> really? >> i think there are too many people on both sides you don't like their own candidates. would to you, six months from now we will look back at the selection -- its corporate earnings, corporate governance, what demand is for products around the world, and we see pent up demand, so i think next a good yearill be for stock markets and a reasonably good year and the -- the 90states states regardless of who wins.

-- the united states regardless of who wins. >> thank you so much for that great to see you here. up, baidu stepping up its battle as it seeks to raise hundreds of millions for its food delivery startup. details are next. this is bloomberg. ♪

david: baidu said to be looking to raise $5 million for its waimai food delivery unit. --$500 million for its waimai food delivery unit. what does it have to do? a fight to the death amongst of these companies with local services. you need to hire drivers.

companiesdoing is that deliver anything to your doorstep, starbucks, food, ,nything quite often for waimai they do it on scooters. you need the restaurants to be part of it. joe's restaurant has to be part of it. you have to take a commission on that. you have to get them to take part in promotions, like groupon and the u.s.. , 5%, 10% to get a deal , you need to convince the restaurants. what's happening on the ground with the china local services? >> we are headed towards a shakeout. we have baidu backing one, tencent holdings backing another. you also have alibaba. they all overlap in certain areas. get people tog to

deliver, to get companies to participate, and to drive up usage of the services, and that costs money in terms of addidies or trying to headcount to grab market share. uberlike over and -- and didi, there will be a shakeout. bloomberg markets middle east coming up at the top of the hour. standing by his manus cranny. >> we have a feast for you. a touch of opec, non-opec, the oil producers. joining us for a discussion about his business, profitability, and what happens next.

this is all on the back of the turnaround in markets with the fbi report yesterday. back to you. see you very shortly. david: that is it for this edition of "bloomberg markets: asia". haidi:

♪ hsbcofits under pressure, to release quarterly results with investors worried and near zero loan growth. >> stocks and futures climbed while havens fall at the fbi of souls clinton over her e-mails. manus: loyal joins the pre-election bounce. --