♪ >> it is a correction. the nerves are back in the market. the s&p closing below its record from january 26. wall street reels as the dow falls more than 40%. the s&p at its lowest since the middle of november. the volatility index is more than doubled. 10 year treasuries really -- retreating. and oil falls to its lowest of news of driven by

record production in u.s. fields. hello from sydney where it is just past 9:00 a.m. this is "daybreak australia." >> and it is just past 5:00 in new york. -- we areking at how looking at the action on wall street. look at this. correction -- yes, it is official. he s&p 500 down to percent from its january 26 high. dow, down more than 4%. the nasdaq is down nearly 4%. 23.9%. 3.9%. and of course, bond yields ticked higher today.

stocks fell. it is the same thing. president bill dudley from the new york fed, he said that markets are repricing. central banks are also moving tightening. and the bank of england made a statement about needing to properly raise rates a little more aggressively and a little faster. >> you really have to question the bravery of people. a lot of people are saying it is too early to get in. selloff overnight suggests the fragility of levels when it comes to sentiment right now. the volatility is still very much the story. deeper intot us get what exactly happened overnight that drove this movement. kathleen: in terms of what has been going on, it is mark carney speaking for the bank of england, bill dudley speaking

from the new york fed. playing down that hikes could go faster in the u.s. three hikes seems like a reasonable pop. i think he was trying to calm the markets. ish the drop in the s&p 500 making it a full-fledged correction. not a bear market yet but a true correction. interest rates could drag down growth. it has been the trigger for some of selling. >> the charts say we are going lower. the message from wall street. when we talk about a white knuckle ride, the 1000 point drop in the s&p 500. what we are looking for is breaking through the moving day -- the 100 day moving day average.

that drop was like a slice. it went to lower lows. technical analysts tell us it foretells a very bearish selloff ahead. when you slice through the 100 day moving average, it means there are no buyers. let us go into the market snapshot. you saw a lot of red on the screen with the dow and the s&p. what you have is some green in the safe haven areas. oil is not a safe haven. also taken some dives. we take a look at some of the big movers. you get a look at the size of some of these moves. microsoft and amazon, you could add jp morgan and chase. a lot of the companies that were bought up a gun tuesday are now selling. twitter is the exception. it is reporting some very good numbers and some content. that had investors happy to find something positive. operates -- on

twitter called tick-tock. indiscriminate selling in all 11 sectors of the s&p 500. down by more than 1% or more. financials were down as a group by more than 4% which is significant. that would -- that is a move that would normally be higher. where you have investors concerned, you have the wells fargo news, that speaks to something serious in the market. let us go to one more chart. continues isoute the title of this. the index is on page four back-to-back weekly declines. for the first time in 2018. if it feels like a rough ride, that is the reason why we are on track for the worst weekly decline since 2008. while wall street may say this

is an expected correction, the sentiment has taken a blow and investors have been spoiled by the rally and have not felt this for a while. commodities. oil also taking a bit of a blow in the overnight session. these are concerns about oversupply creeping back into the market again. su: you have a combination of things. the rise in supply. you saw oil down by about 2%. oil investors have been talking about fundamentals being positive. now, they are very much focused as the stock market is on the technicals. we have another chart here showing the decline, the recent decline and sharp decline. the technicals show there is more ahead. another extraordinary session on the market.

carnage that the was when it comes to wall street, no doubt we are setting up for a difficult session on this friday trading day in asia. the new zealand trading stock -- the new zealand stocks are always -- are already down. we did see some fluctuations when it came to the currency. the yen was the biggest gainer. that is clearly safe haven play. looking here in australia. the rba governor says he does not see a strong case for near-term interest rate adjustment. findd not feel obliged to -- to follow any global movements. ofures showing downside 2.25%. the other big thing we are watching for in terms of what will impact the aussie is the

inflation data coming out of china which is expected to show a little bit of weakening. we had record production numbers from u.s. oil fields out. crude trading just above $60. gold futures being bid up by 0.5%. when it comes to some of these industrials, iron or it -- iron ore is holding up pretty well today. kathleen: alling -- big focus on washington, d.c. as we wait to see if the senate can take the first step in avoiding a government shutdown. they now have to pass the bill that would avoid this by raising spending levels high $300 billion in the next year. a lot of people thought that would be smooth sailing until senator rand paul, a republican,

said he wants to put the spending cap tack in the bell. he wants to control spending. now there is a risk that the government will be shut down. just one more thing that markets are watching. we are now joined by ian lyngen. welcome. what a day. you are not sitting back all day long. bank of england, mark carney, wrapping up the meeting signaling that the bank of england may be raising rates were quickly. bond rates fall. whatever this was -- a central banks are on the move and people are going to sell stocks. moveit is a fascinating playing out in the treasury market right now. typically, when we see a correction in equities, we would

see a fight for equality. just there is a current feedback loop in play undermining risk assets as treasuries selloff. it was a big week for issuance in the treasury market as well. tepid demand for the tenure and even more tepid for the 30 year. and not just looming central bank rate -- central bank rate .ikes but also debt issuance that is what the government shutdown thing gets us back to. ian: that is a good point. we would expect the bulk of the issuance to be focused on the front end of the curve. but now there is a need to finance more debt. given the outright level of yields, i have to say that i was surprised not to see stronger

demand for the 30 year auctions. di: i would like to throw up a quick chart. it may answer if there is more of a correction to come. this is 2851. this extraordinary streak of calm has come to an end. levels that we have come from, is there further to go in a market that is recalibrating itself? ian: that is the question we are all asking ourselves. will there be a more significant correction in the equity market? when you see the fed tightening monetary policy come it is not good for risk assets. and in range bull market correction is potentially at hand at this point. it will be a telling friday's

session in the u.s. have: you would have to nerves of steel to do what some of the strategists are suggesting. today's session would put some of those people along the sidelines now. ian: certainly the move on last monday wouldis seem like a classic buying opportunity. we have seen it occur again where rates were grinding higher that had a lot of people on the sidelines. kathleen: the new fed chair has brought to the fore the question of the federal reserve. first it was greenspan and then bernanke. will it be jay powell that will rush to the rescue of the stock market? we had an exclusive interview earlier. characterizes he the stock market selloff so far. >> the implications for the

outlook are marginal. we probably will not change our thinking about the economic outlook. if it was to go much further and be much more persistent, it could start to affect household and business spending behavior and that could influence the economic outlook. so far, small potatoes. kathleen: small potatoes. european central bank officials making the same kind of remarks. and yet, i also asked bill dudley from 2015 into 2016, the fed did do three rate hikes. of volatility including the chinese stock market selloff. think that if something really extreme happened that could happen. ian: i think dudley makes a very good point.

he has been a big proponent of the finance conditions index as a reason to move forward with monetary policy normalization. in this type of selloff will undermine the financial condition index. the similarities to the beginning of 2016 are rather striking and so that is an index we will be watching over the next few days. kathleen: ian l'engle, thank you so much for joining us. now, we want to get to the first word news dust with mark crumpton. itk: facebook admits that cannot catch every fake news account created on its site insists it is working as hard as it came. social media executives in washington. the sign of rising global pressure to take control of their once freewheeling platforms. they repeated pledges made after

your selections to promote better content. >> you are right that we do not catch every fake account at its inception. we do find and remove many fake accounts every day. this is an area of tremendous technical investment for us. says interestney rates may need to arrive at a steeper pays than initially thought to prevent the brexit economy from overheating. he looked at forecast for growth and said inflation is likely to withn above the 2% target three 0.25% rate hikes expected in the next several years. >> we will not tie our hands to a particular path for hikes. for youriterating viewers that these are interest rate cycles unlike those they

would have experienced in the past. criminalsw study says are ditching bitcoin because it has become more expensive and inefficient. a cybersecurity firm said the most widely used cryptocurrency is likely to lose its dominance as a payment method on the dark web. sixth mostis the valuable cryptocurrency. global news 24 hours a day powered by our 2700 journalists and analysts in more than 120 countries. in new york, i am mark crumpton. this is bloomberg. ahead, the diplomatic dance on the sidelines of the 2018 winter olympics. kathleen: the clock is ticking on another u.s. government shutdown as lawmakers face a

senate roadblock. it has to happen by the strike of midnight or the government may be shut down for another few hours. this is bloomberg. ♪

♪ counting down to the open of trading here in sydney. will -- sydney futures are already down by over 2.25%. we have the quarterly monetary to date looking at revisions in growth and inflation forecasting. last night in sydney, the governor says he does not feel obliged to follow the path when it comes to global central bank tightening.

overall though, even though we had some modest gains, when it comes to the asian session yesterday, we are seeing some signs of recovery no doubt as a result of the s&p 500. over 1000unging points and that will weigh on sentiment here in asia on friday. kathleen: i am kathleen hays in new york. vote on anate spending bill to upper another u.s. government shutdown that has hit a roadblock. senator rand paul is refusing to hold a vote. joe joins us now from washington. what a day. this morning it was like -- it is going to sail through and then suddenly there is rand paul. what happened? joe: we are looking at what could be a very long night. in the rules of the senate, one senator can hold things up and rand paul has done that saying that the budget deal creates too much spending, it will add to the deficit, and so far he is

withholding his consent to proceed along and senate leaders are reluctant to give him a vote on an amendment that he wants to propose which would keep the existing limits in place so they do not open up the floor to a free-for-all. when they have a deal from the leadership of both parties, that is pretty much ready to go and likely would pass by a comfortable margin in the senate. -- he is oned paul person that can hold it up. my understanding is that it can be held up until midnight. at midnight, if there is no vote, there will be a government shutdown. is that correct? and then the senate has to vote. the clock would reset at 1:00 a.m. it could push it into that territory and then the senate could vote but it would till take the house for five hours to

go through their procedures and get a vote. i would add that the republican leaders in the house are increasingly confident that they have the votes to get it passed. but, this would push the u.s. technically into a shutdown though the affect would be rather minimal given the hour. the office of management and budget could also instruct agencies to carry on with a processat this is in and it is going to be resolved. but, it is a bit of a precarious time for any number of things could still go wrong. haidi: it certainly is a precarious time. there are growing concerns about what the ballooning federal government deficit will do to that. what is the added spending impact going to be? joe: in the near term, it will add to the deficit which was

already increasing with the tax cuts that were passed in december. billion last66 fiscal year and it will certainly go up. the congressional budget office has only given a partial score on how much it will add to the deficit because they have not accounted for the actual raise in spending. technical factors. they have to see how it is actually appropriated. but, near-term, yes, the deficit will be going up. we could be a approaching come up before too long, the possibility of a trillion dollar deficit in the u.s. haidi: joe, thank you so much. watching that story closely as the clock ticks towards the shutdown. look at one of our

favorite functions on the bloomberg. you can watch us live on tv . you can catch up on past interviews and conversations. this is our interactive tv function. you can also dive into any of the functions that we talk about. instantalso send off messages during our show. this is only for bloomberg subscribers. you can check it all out on tv . kathleen: a banner day for twitter. the social media platform posted its first real profit. how about that? let us look at some of the numbers on twitter. actually, we are going right to our news flash. $4 billion in commercial real estate in the u.s. to stave off a cash crunch. in san francisco, there is an asset along with the tower in new york. hma made worldwide headlines. the group must repay almost $2.5

billion this quarter. falling after are tody's rating changed negative. the ceo could harm the reputation of the company and its financial importance. down from stepped wynn resorts on allegations of sexual harassment even though he denies any wrongdoing. he says the publicity has made it impossible for him to stay on. slashed --issan/-- rising incentive. the company now says operating befits this fiscal year will $5.2 million. however, nissan sees higher net income after recent u.s. tax cuts. let us get to the bitter story. it has been a banner day for

twitter. how rarely do we get to see that. it is posting its first real profit share. the first revenue growth we have seen in watch recorders. this continues the recent turnaround trend for twitter. it has been fighting the plague of fake news. this is the first profitable quarter ever for twitter. is it sustainable? >> one thing they have done cashy well last year was rationalization. i think they have established a platform where things have come down structurally and from now want it is more about maintaining the margins while increasing expenses in tune with the sales. the prophet is not one off and it will continue. haidi: bailey users are growing

daily usersusers -- are growing but monthly users are not. >> daily user growth has been gaining momentum. they are maintaining double-digit growth for the last few quarters. the engagement of the current user base is increasing on the platform. some of the product changes they are making have been using. but the monthly user number is stagnant. it will take a while for that to take off. informationith the simplification of the product and the control of some of these fake news issues and fake account issues, hopefully that will pick up but the focus is on changing engagement youth into revenue. thank you so much. a big story. twitter finally making some money. bloomberg lb operates a network

on twitter called tick-tock. kathleen: coming up next, going against the tide. the rba says it will not be following its global peers in raising rates anytime soon. this is bloomberg. ♪ we use our phones and computers the same way these days.

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haidi: it is my 30 a.m. in sydney, and it doesn't appear to be a happy day for asian trading, the dow plunging a thousand points. that jam,rection from and the downside of futures at a quarter of 1%. sydney.lun in kathleen: i wonder how long central-bank those -- backers say this is small potatoes. bill dudley says the current

market moves are small potatoes so far with virtually no implications for the wider economic outlook. told kathleen hays that the market is adjusted to quicker global growth and a resulting tightening in both directions from central banks. has a total kathleen that he is sticking with the fed the summer outlook for rate hikes. is premature to make predictions whether it is going to be 1, 2, 3, or four -- it was a three-way hike in 2018, so it seems like a reasonable projection. most -- yuanct the sank the most in shanghai, marking a reversal for the currency that has been rallying as the dollar retreats. extended losses after china's

trade surplus shrank to $20 billion from almost 55 billion a month earlier. anlcomm has rejected approved offer from broadcom saying it would materially undervalued the company. the revised bid raised from the potential deal from 105 billion to 120 billion, the qualcomm says it falls short and says it is prepared to meet to kiev if broadcom can address what it sees as serious deficiencies and value and the certainty of a successful transaction. oil fell to its lowest after a report showed record production in u.s. fields. futures dropped for a fifth day, posting the biggest streak of losses since april. an 83% ofplace when the's oil and gas production -- it is the equivalent of 21

billion of reserves at the end of 2017, enough to sustain current output for 14 years. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. haidi, back to you in sydney. final trading day of the week and asia, in new zealand where saying downside -- ofhough we are off somewhat those session lows with the kiwi --lar trading at .7219 against everything except the yen, which is seeing a safe haven. openy futures within ugly -- with a ugly open. at .70sie dollar trading

777 and the policy statement out in due time, and where talking about the dollar-yen earlier and it doesn't look like we have , and that dating handle is going to create headwind in japan, and sterling 1.3 920, andt above, we have poor results for that 30 your auction, stacking concerns about rising yields in the selloff in bonds, and an exclamation when it comes to fed tightening, and the s&p 500 toppling 10% to enter a true correction. kathleen: a lot going on, and you can't watch just one market, yet to watch the world. and roaming bostick joins us now.

make you more extreme is not just a correction, it is getting bigger. romaine: when you look at the selloffs we have had, this is probably the most broad-based when you crunch the numbers. , all 11as spared sectors of the s&p were down, and not just small, it was down more than 3%, and financial is getting hammered, technology getting hammered, consumer discretionary, industrials -- more than half are below are right around the 200 day moving average, more than half of the stocks in the nasdaq are below the 200 day, and we saw velocity going into the close. yesterday, whatever strength we had yesterday or the beginning of the date of operated by the time it got to the end. 24,000, belowow 7000 on the nasdaq, s&p broke

through that 100 day moving average and we are i that 200 day level to watch as 2538. i guess if you're looking for any bright spots, we did have 16 stocks up in the s&p today, kellogg, fire,, so if you are in that sweet 16, you did ok there. haidi: is this a rotation story? if it is being pulled out of stocks, where is it going, because it is not going into the bond market? romaine: we are starting to see bids into the yen, and the yen strengthened against its peers, and it head 10858 against the dollar, and so you are seeing a lot of money for their, and where being told to expect a lot market, and the fx

not just in the yen, but we not seeing auction in the commodities, and gold, which is typically a safe haven, trading flat. down, so we are not getting a lot of attention there, as far as 10 year yields and the us treasuries, we are seeing a lot of tepid activity primary because of the two options we had this week that didn't attract a lot of buyers particularly on the foreign side. 2.82,r gilts hovering at so not a lot of buying action there right now. romain, thank you so much. where now joined by chief investment officer for equities overseas all equity and asset allocation products globally, and steve, this selloff overnight change your view of

the nature of this pullback, this correction? >> no, it didn't. as you know, we are bullish on fundamentals but it is a technically driven selling that is going on, and they know it is painful. our view is that this could happen, and there's a lot of players levered into the notion that bond yields are going to stay low. as they come up, it is increasing the correlation between bonds and stocks in a negative way and is causing them to look at their books. you mentioned earlier that selling was across the board. is not fundamental investors here, it is people literally selling their books of equities to deleverage their positions. in this environment it is hard oruse, even fundamental

technical analysis to pick a bottom. right now we are trading at under 17 times, we have to market at 16. so on that fundamental it looks good, but you can't use valuation to pick an entry point. on the technical side, you can look at averages and people point to the 200 based just a couple of percent away, but that usually is a measure when you have got real players moving money and are affected by the psychology of lines like that. view is aat i would more technical selling that is almost machine driven. it is almost like slow-motion is a long1987, which time ago now, but that is where i got my start in the business and i remember that day. it is a slow-motion replay

there, and i think you have got to be patient, and we have been telling people to buy into this. anotherobably do somewhere in here, but i think frankly, lower levels if we get here. we are waiting to see if the bond market can stabilize, and the it does, i think levering will start to slow down and markets should be poised to regroup. that is how we are viewing it. is that what you are telling your clients, to sit still for a while and try to write through this -- ride through this? >> absolutely. the fundamentals are quite attractive in stocks right now, -- if you look, our clients over the next one year, i think

it certainly will be at higher levels. that it ever certain in the stock market though. kathleen: first of all, technical levels, what is the next level you are looking at the 10 year note yield? are you looking -- is it going to 3%? when you are talking to your clients are team, technical levels, what should we be watching? get theiroping would gradually, but it is going so quickly it is causes losses and bonds and triggering these programs on the equity side. three or three and a quarter, if it happens quickly, it will get more equity selling. onlye equity side we are but would be the 200 day,

again, i don't necessarily see a technical level here as make that is as important for equities. kathleen: think you for sharing your thoughts, it seems a bit reassuring, but we could go further on the downside. australia's reserve bank governor speaking and he said he feels no pressure to follow other global central banks. more on this -- what a time to be a central bank had talking about anything because they are on the spot in so many ways. was speaking of the long-term potential in sydney, and is often asked with other global central banks raising rates, if he feels pressured to do the same, and the short answer is no, he doesn't. australia didn't cap rates with the rest of the world after the global financial crisis, mainly thanks to the commodity super cycle that was enjoyed in

australia, so by the same argument, rates do not need to go up. is that there is a common element in world wide rate moves that isn't necessary, so he isn't feeling pressure. let's listen to what he had to say. movement in interest rates will be up, not down. this is how things play out, the likely timing will depend upon the extent and pace progress that we make. what is he looking for? >> there's still some way to go before we had full employment, he sees wages up as well, but inflation is the key as well. he says that it is going to be below that midpoint for the next couple of years, he says if it hits that midpoint at some point, it will be appropriate for interest rates in australia

to start moving up, and it is rather telling that after those remarks, they just did there rates in australia, not taking one in 2018 anymore. pop, thank you for much are looking at inflation and growth forecast. the winter olympics is hours away, and politics is handicapped the on the events from nuclear advance to the legacy of the second world war and slavery, north asian correspondent joins us now from pyeongchang, and set the scene for the complicated seen by the sounds of it. is the north that korean situation. ofare thick in the security the olympics, and it is the logistics nightmare. we are going to be live all day today setting the stage for the opening ceremonies later tonight. it is pretty called, but this is

actually the warmest they already this year. it is one degree forecast for today, and had been as cold as -20 earlier this week, ages frigid for all the spectators coming to the opening ceremonies in the lundbeck stadium just down the road -- olympic stadium. the backdrop is against the north korean issues, and south korea, and the korean peninsula wouldn't be what it is today without divided opinion. a lot of people in south korea are concerned about the president giving away too much to allow the north koreans to come here and participate, to overshadow the south koreans. also mike pence, the vice president is here. this is what he had to say about not buying in to north korea's propaganda efforts. united states of america will continue to spend shoulder to

shoulder in our effort to bring maximum pressure on north korea until that time comes -- when they finally and permanently and irreversibly abandon their nuclear and ballistic missile ambitions. withke pence plans to meet president moon, and president moon, in an unprecedented move will tomorrow, saturday, for lunch, meet with kim jong-un's sister. the first time a family member of the north korean ruling family will be visiting south korea. you can imagine people are excited about the connection, but on the other hand, do they feel the north has hijacked the attention from south korea a little bit? >> that is the concern, and that is the question i put to the

culture, sports, and tourism ministry yesterday in an exclusive interview, and this is what he had to say. he said the lasting legacy of these games must be one thing, and that is peace. during the preparation of the there have been disputes in south korea over north korea's participation, and also because of the missile defense issues. china is not sending as many people, so there has been several difficulties. however, was still a big start, we believe the issues will be in the backdrop of the olympics and people see the outstanding athletic abilities on display and get immersed in the olympics and we hope that people will see it is a very well-prepared olympics with an excellent and the unified opening ceremony. said, piece is the ultimate goal, but what did kim

jong-un do? they held a massive military parade. back to you guys. kathleen: we have plenty more coming up from the olympics, and alibaba president will join markets asia to talk about the partnership with the ioc. at 10s first on bloomberg p.m. new york time, don't miss it. haidi: a great conversation i haahead. go toak subscribers can their terminals, and it is available on the mobile and anywhere app and customize the settings and get the needs that you care about. this is bloomberg. ♪

kathleen: m kathleen hays in new york. haidi: you are watching "daybreak: australia". a lot of people have been saying we don't know if it is over yet, but we shall see. a quick check of business headlines. -- theorted losses losses from the california wildfires resulted in $752 million in the $7 billion charge tied to the u.s. tax overhaul. still, their ceos efforts are paying off, with the loss of north american business, nearly 94%.

jumping --s rates sources tell us softbank might buy the company back to be valued at more than $12 billion, the talks are at an early stage and nothing is confirmed yet. so back a a string of investments in microchips and indoor farming. turnedn: asset sales has bonds from losers to winners -- the group made property unit is the best performer among real estate companies with all nine onshore notes in the bloomberg barclays index returning more than 2% this december. after they were the worst performers. we are a few minutes away from the open of trading here in sydney with futures pointing to early losses as you might expect

australiasession -- has gains through this brutal global selloff, what is the shyook helping this market away from the broader trend? say, australia's benchmark of two straight days of gains instead of -- managed to hold back losses, and it looks at it is about to break. momentum anyd back further, futures pointing to losses in trading this morning. the local broker is saying they expect a aggressive sell down in a few minutes. as he said, we have seen two days -- and what we are seeing in the index is particular gains

for mineral resources, media, and also had earnings momentum through the week, some indexes biggest companies reporting numbers particularly we have seen positive news with the they hadrio tinto, their best profit results in three years and lavish cash for investors. some of that good news has helped the index in the last couple of days, but the tide looks like it is about to turn and can't hold back that trajectory. kathleen: the tide is getting n't it?ting, is i investors? mean for >> the latest again from cryptocurrencies is japan -- annual tax filings to the course of this month, and what japan is

onng is packaging gains currencies and equities at 20%, so cryptocurrency gains on the to rate runs through 15% 55%, so we certainly are seeing concern among investors there. in the u.s. alone, the irs says long-term capital gains from virtual money is also subject to tax but at lower rates than japan. what it means for investors, texas visors and japan are saying that plenty of investors come to them for advice, and many are in their 30's and 40's and for a handful of really big winners from cryptocurrency being from large investors say those people are choosing to leave the country. haidi: very interesting. that is almost it for "daybreak: australia" this morning. "daybreak: asia" is next, and we can continue to get some insight

as to where the selloff goes from here. yvonne: absolutely, because the what you wish for, j is joining us at the 8:00 hour, because the lack of volatility has been and are now in an inevitable fashion, and he says he is not going to be changing his view at this point when it comes to equities. he is still bullish, and he does admit that we're going to see a bout of volatility and draw down here, so we could be seeing a further way to go in this correction. we have a terrific roundtable as well. we have john cochran -- the senior fellow is solution at stanford and works for john taylor and others, so we will get his thoughts on where the fed is going with rate hikes kos. year, and dino

he is going to join us to talk about his view of the bond market and how the fed tends to deal with this, look at it, and we will have a to the conversation with him. haidi: i am wondering if he will comment on small potatoes and if those views will haunt him. kathleen: it might, heidi. [laughter] that: seems to be talking animals here at the moment, an exclusive here on bloomberg tv, mgm chairman will be joining us to talk about their plans for the integrated resort in japan and the outlook and cost and challenges in going into this market and what he sees as the true potential of that market in japan. also his views of what is happening over at wynn as well.

that is it for "daybreak: australia". at a down day, tracking get another day of losses on wall street. this is bloomberg. ♪

in hong kong,.m. i'm yvonne and look at the "daybreak: asia". is aop stories this friday correction come at s&p 500 closes 10% below january's record as rate hikes worried returns to the market. falling inc stock is a downward spiral, and the kleins of at least 2%. -- declines. the volatility index is more than double it week ago, and 10 year treasury yields retreat from your for your highs, but it is not simply an adjustment.