>> wall street launches a busy earnings week on a down note. stocks lowered by tech and industrials. >> s&p hit by boeing in microsoft while the nasdaq solve broad declines. apple, though, was a bright spot. quotes -- >> elsewhere, missing in the first half as profit stalling and seizing typical trading conditions ahead. >> the administration will name those countries that will be spared from tariffs and those that will not be. baited breath.

on paul allen. this is daybreak is truly a and we are two hours away from the open of asia's first markets. just after 6 p.m. in new york. i'm betty liu. over the next hour, how the actionable plan to the asia-pacific trading day. in asia, manyover of the markets are closed for the holidays. here in the u.s., it looks like there wasn't a lot of conviction behind the trades today. we did and lower, tech stocks continuing to fall down about 115 points. the s&p lower as well as the nasdaq. the broad-based decline in technology shares that came out earlier this morning. again, not a lot of conviction to buy into the markets. the result is that investors just continue to sell. right.hat's we are already seeing evidence

of it in the first few minutes of trade. the index is already weakened by about .2%, leading into that. take a look at the kiwi dollar as well. see a lot of u.s. dollar strength. we saw the markets close yesterday for may 1, labor day. including key markets of hong kong, china, and singapore. trading in new zealand just underway. the futures in australia, however, also pointing lower by about .25%. the aussie dollar showing ongoing weakness against that resurgent ringback. but get a quick look at commodities as well. we saw crude oil pushing higher again. this is on news out of israel that iran may have lied about its nuclear programs between 1999 in 2003. ongoing weakness in iron or, gold pulling back a little bit. aluminum not on the board but the recovery is ongoing. get the first word news.

jessica. that it hasael says proof that iran has been chasing nuclear weapons. thousands ofcured documents that show tehran lied about an operation called project him on that goes back to 1999. they say israel was rehashing old scenarios and some analysts say they are repackaging old information. alibaba is warning that the u.s. will suffer in any potential trade war with china. speaking at the milken conference, founder and vice-chairman told bloomberg that beijing will retaliate against american tariffs and both sides will suffer. president trump have threatened a range of measures worth $150 billion against china, due to take effect later this month. >> this will fill a lot of jobs

because the tit-for-tat trade tactics really will cause a retaliation. in china, they had just put on soybeans. farmers.urt american holding the anticipated summit in the demilitarized zone. it several countries have been suggested as host. the president said the list has been whittled down to two or three. they said perhaps the house will be more representative and lasting as a summit site. north and south korea take the first step towards a new relationship today. they are dismantling the speakers that have broadcast pro-or anti-propaganda over the border for years. the move was announced at the end of last week to historic talks between president moon and kim jong-un. they're calling for a summit between the north and the u.s.

between june or july. opel news 24 hours away on air and on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. you sojessica, thank much. it more details on the latest earnings. all street started off on a bullish note but big losses in tech. industrial shares weighing on the market. the dollar has been a different story. a closing of the best month since november of 2016. that rush continues to the greenback. su keenan have the latest. are not seeing a lot of conviction and in the past year, we know what sector is leading whether it was telecom more chips. now it is oh, no, this. oh, no, that. oh, no, telecom was the story today. the dollar you mentioned finishing the best month since november of 2016.

oil rising and treasuries gaining. let's go to the big movers. we have the split that you can see the size of the moves are significant. twitter showing that social media stocks are of big. content.or life those on the plus side but the down stocks really claimed the day. microsoft jumping suddenly in this session. as dropping in a big way morgan stanley comes in to hi me out the timeline. edgar opportunity for drugs will kick in. it had a lot of investors disappointed. let's go see where you can find these charts. despite this being sort of a negative day for stocks, it has been a rather surprisingly strong season in general. and more s&p 500 companies than

ever are beating estimates. so far, with 80% of the index members topping forecast, it is looking pretty good. tax cut or poor forecasting by analyst, the s&p 500 members of been delivering profits above the expectations and at the best pace on record. mergers a big part of the story today, including the multibillion-dollar combo. andbig declines in t-mobile sprint had a lot to do with regulatory scrutiny. stocks run out and wall street has a bit of jitters on whether regulatory scrutiny .ill do the deal , deutschend sprint telekom and softbank, also taking hits. telecom, players and

e, thehn leger, the t-mobile ceo is speaking optimistically as pretty much most ceos are going to end up heading the company do. it is the last day of the at&t time warner antitrust trial. the government making its case against that merger. concerns and that there is regulatory scrutiny in the air. marathon oil making a big play. making it one of the biggest refining companies out there. and in another deal, marriott vacations. i'll ilg. and investors will be liking that deal as well. a very busy merger monday. betty: we haven't had that in a

while. think you so much,'s su keenan. let's get to quint. first off the earnings season, what do you make so far? what does it play about the health of the markets and the health of the economy? >> i think it is good, betty. of the s&p 500% surprise on the profit side, 75% has surprised on the top line or the sales side. it is easy to massage the income statements per share to look the way wall street wants. it is difficult to massage the top line. we are more encouraged with the revenue increase that we are seeing. going forward, the economy is healthy. i think we are seeing some great

opportunities. we are seeing profit taking in the areas that have just been the darlings of all street for such a long time. we are seeing areas of opportunity present themselves and other areas that i think are going to be the movers in the coming quarters. betty: areas like what? mr. tatro: financials is probably our favorite by far. big banks like jpmorgan, goldman sachs, and first on valuation, they are not overly expensive. trading about 1.5, 1.6 times book. these are stocks that are having to tailwind of the interest rate environment in addition to some of the regulations and a very favorable environment. they are going to be doing very well with all of the mergers and

acquisitions. they are buying opportunities in our case for sure. paul: the sector looking very healthy at the moment. approval,g regulatory in particular, they are watching them for more m&a. mr. tatro: it is not my specialty, but there are specialty companies that are very interesting to me. first solar that just got creamed. unfortunate to have a losing day, but that happens. iss is a company that trading at a very low multiple, not only to existing earnings, but to future earnings and very healthy valuation times book. there is speculation that they

may roll back the tariffs on solar panels. and in my opinion, it won't impact them at all. like theck like this, banks, it is an area that interests me a great deal. we have had discussions about how old this bull market is beginning to look. do you have a correction or where it might come from? are in it.i think we we are seeing the correction right now. how long or how deep do we go? corrections don't just have to be priced. corrections can also come with time. and i think that is what we're seeing right here. we have certain sectors they go much further. biotech, technology, those are sectors that could see deeper trenton the pullback. areas that will be receiving that money, the financials, industrials, basic materials, that is were we will see the

money rotate. we are in the midst of that correction right now. to be choppy going and i don't think the volatility is done. i think it will be more about time and into the summer and fall before we come out of this and reach a new high. market,t feels like a goes theere tech tech markets. we will show you a perspective on the monthly basis on how the s&p has done. our viewers can see here in this , we ended each month a deep in the red and it looks like for the month of april, we will end marginally in the green for the month, which could be a relief for some bowls, but with an earnings season where a majority of companies are beating profits and topline estimates, it is kind of surprising to see what a weak performance we have seen in the markets.

i think perfection has been priced dan and companies that did not blow the doors off of numbers are going to be seeing profit taking and that is customary in any extended late stage will market. we are definitely in the later stages. that is why the more stodgy names are the places to be in this market. intel, for example. they did not just completely sell off. in fact, they traded higher. they are not getting clobbered. that is where the money is going. if you chase the momentum in this market, thinking that netflix or google is going to pop another 8% or 10% and get that return, i think that is crazy. that does not work in this environment. betty: stay with us and we will have more on the markets. jouletatro of

financial. austro you prime minister joining us from the milken conference in l.a. we will be talking trade, tariffs, and of course tpp later this hour. paul: we will also talk to the head of one of the philippines biggest operators. this is bloomberg. ♪

paul: i'm paul allen in sydney. betty: i'm betty liu in new york. you're watching daybreak australia. says he's looking forward to traveling to china to talk trade imbalances and tariffs. wilbur ross will be joining him as long as light heiser. it comes amid tensions in china saying it is quite prepared to defend its interests.

mr. mnuchin: i'm looking forward to very frank discussions on the trade issues and continue those discussions. and see if we can reach a mutual solution. the good news is, president trump and president xi, since mar-a-lago, they've been talking about the trade imbalance. acknowledge that the objective is to have a more balanced trading relationship. the presidents have a close relationship. i'm going over there was a large economic team to see what we can get. chinesee: if i were the and listening to that team, it will be you, u.s. trade representative peter navarro -- mr. mnuchin: and larry kudlow and secretary ross. stephanie: should i be listening to you preparing for these conversations or peter navarro? is that a united front? you should be listening to all of us.

we have a terrific economic team and we meet almost daily on these issues. we meet with the president regularly. it is good to have diversity of opinion and when we go over there, we will have one voice. stephanie: what is success on : if way back? mr. mnuchin you will know it when you see it. few hours we are a away from the exemption from the tariffs expiring for the european union and for a bunch of other denny's -- countries. can you tell us more on that? mr. mnuchin: i expect he will see a decision from the president today. i'm obviously not going to get ahead of the president on his announcements. steven mnuchin speaking to stephanie flanders at the conference in beverly hills. tatrt tatro.ed by quin

let's start on the possible exemption from tariffs and eu allies. are these cliffhangers helping fuel volatility? or is that part of life and we have to get used to it. i think it is absolutely fueling volatility when we don't have answers. the market does not like uncertainty but i also think it is the era of the trump administration and we just have to get used to it. we have gotten used to it to a degree but we're certainly going to see continued volatility to these uncertainties. and nobody wants to see a trade war. and i throw win this word interest rate war or bond war because we have a $350 billion trade deficit with china. to think that we're going to a close tariffs and they are going to impose tariffs to hurt us is

ridiculous. what they will do is probably what we are seeing which is them stalling in their buying of treasuries or selling treasuries which is going to spike our interest rate which will dramatically impact our economy. thatnk we are seeing retaliation right now in the united states markets. and really, as an investor and american citizen would like to see this be resolved sooner rather than later. they: you and many ceos in u.s. that are sidelined right now. waiting for the resolution to make any more deals. he spoke about interest rates and i'm curious that we have the fed meeting coming up. they are starting their meeting on tuesday. what were be watching out for? mr. tatro: we will watch out for their talk. i don't think they are going to raise this meeting and i don't think we will get that until the next meeting. i think we want to see how hawkish are they? how tough will they talk.

a fed chair now who is very wall street sensitive. and he will be definitely downplaying any tough talk. 3%have a 10 year over the and we haven't been there in several years. it is very scary for the market. investors tofor look at making an investment or a trade in this, it sold off because of the strength in the dollar. but we do like gold. if tariffs come through, we will see inflation very environment on the prices of those raw materials. if they subside and we start to have these sort of agreements, we will see the economic engine start to turn again very aggressively. any pullback in the trade is possible if you want to

allocate capital there. >> we will leave it there. dissect that latest rate decision. stay tuned for that. this is bloomberg. ♪

betty: i'm betty liu here in new york. paul: and on paul allen in sydney. you're watching daybreak australia. thee going to be watching open, bank missing expectations in the first half and also forecasting a difficult trading condition ahead. we are joined by our asia finance reporter here. what are these challenges ahead? >> the ceo was quite clear in the results that the goal is there, characterizing australian banking for the past 20 years. he says it is over a combination of things. many times about more regulation

coming through to this sector. and consumers just don't have quite as much money as they did. and there is increased competition among the bid for -- big four. it is attractive part of the bank's business. the result is not bad. it's a bit messy. we see the estimate slightly difficult to reconcile. not a bad result. in the meantime, we have another regulator releasing its report to the commonwealth. what has a pound? betty: -- has it found? exaggeration.o talking about complacency, groupthink, insularity. it says the culture of the commonwealth bank is in the financial risks and the reputation. , how should ially say it, downgraded.

thathe focus is on organization meaning it was a well-run organization. a headache for the new ceo, right? betty: as matt coleman deals with this, what do shareholders do? a much have a priced in these scandals? emily: the commonwealth bank itself has suffered a massive, very big decline in the share price is. the scandal around the down 14%ns, shares are since that. there is clearly a lot of pricing and it is already happening. we will see it open today. how much more it is still to go. suggesting that shares might be a buy. and it has fallen enough for that to be the case. for: emily, think you joining us. it will be hearing from the ceo

on daybreak destroy it tomorrow. don't miss there. in a moment, steve joins us to ,iscuss the state global trade up next, this is bloomberg. ♪ retail.

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and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. paul: it is 8:30 am in a rather chilly sydney where markets open. we have futures pointing slightly lower. betty: we're at 6:30 p.m. in new york. you are watching daybreak australia. let's get to the first word news now. jessica: the u.s. treasury march $488 billion in increasing cash for a widening budget deficit and also $47 billion more than it originally estimated and sets a new first quarter record. the deficit has grown to $600 billion as the fiscal picture deteriorates. the c.b.o. expects it to top $1

trillion by 2020. the trump administration is to announce later tuesday which friendly nations are exempt from tariffs on steel and aluminum. the commerce secretary said wilbur ross said some allies would be spared but not all. shinzo abe has pleaded japan's case while president macron and chancellor merkel made separate requests for the e.u. while in washington last week. goldman saks says investors have become lulled by the long bull market. the bank also said they're motivated more by the search for profit than by concern of a possible correction. president david solomon said he could see plenty of evidence of people seduced by the years of cheap money. u.s. stocks have almost tripled in the past nine years. that's while the federal reserve has kept interest rates near all-time lows. >> we're down the road in the cycle so this certainly places -- there are certainly places where people are further along the greed spectrum than the fear spectrum. an environment where money has

been so inexpensive for such a long period of time there is no question people have been reaching for yields. jessica: north korea said it decided to sync time with the south, almost three years after setting the clock back by half an hour. state media said kim jong un made the decision after his meeting with president moon last week. the north moved its time zone 30 minutes behind the south and japan in 2013 and said it was cutting the legacy of tokyo's colonial rule of the peninsula from 1910-1945. global news 24 hours a day on air and at tick tock on twitter powered by more than 2700 journalists and analysts in more than 2400 countries. this is bloomberg. paul: thanks, jessica. just want to get you across some breaking news crossing the bloomberg right now. we have so-called earnings from the a.s.x., net profit up, techs rising to 121.4 million australian dollars. have revenue coming in at

204.6 dollars guidance for the full year unchanged. just some numbers there for you from the a.s.x. let's get more on what we should be watching as trading gets under way in asia. the bits of asia open today anyway. we have bloomberg's asset editor garfield reynolds here. what are we expecting? >> on the one hand of course not much because the a.b.a. will hold to a record low 1.1%. this will be number 20. but the australian dollar is at a very interesting stage as the market which got very excited about the idea that they mide consider raising it sometime this year has peeled those bets back. as we take a look, we have a chart. we should be able to bring it up. that shows the way that the australian dollar has quite closely tracked those expect ags. this is the six-month implied

forward, so back in january, before that very disappointing number came along, the aussie dollar was climbing and so were the expect ags. now that is gradually tracking down and we are getting to the stage of testing the 75 cent mark we got to back in december. the question is, is the r.b.a. going to make it clear enough it is not going to raise rates and therefore send the aussie down through that? but to get much further you'd have to have them sound gloomy enough to get people bidding that rate cuts might be a possibility. betty: let's turn to korea though. i want to talk about korean assets and how they've been climbing on this peace optimism between the south and the north. how much longer is this xpected to last? garfield: i suppose there is potentially a one-month limit as it were in that sometime

this month trump and kim have to meet. until they meet i think there will be a strong bid for korean assets unless donald trump, you rnings gets a bit antsy and tweets about little rocket man for some reason. the korean 1 and the kospi had a great day yesterday. that is likely to continue for sometime. however, there is still quite a strong valuations gap between the korean market and a lot of its peers. i think that gap is going to remain and, you know, maybe keep the froth down until we get some concrete progress. betty: all right. garfield reynolds, thank you so much. cross asset editor. don't forget also to check our gtv library for some of the charts that you just saw there in that segment and the ones earlier in this hour. it's on gtv on the bloomberg terminal. now the trump administration as you mentioned is going to be

deciding later tuesday which ountries are going to be spared tariffs and which will not. we go to the conference in l.a., our chief international correspondent for southeast asia is there. how concerned are people about this tension, this tariff tension? >> well, it is a grave concern because of the representer educations. from get some perspective the trade secretary steven mnuchin. >> i'm trying to make it easy for you. >> of course he was just here. mean, the jury is still out regarding the tariffs to be imposed on steel and aluminum. they say some allies will be xempted not all.

>> certainly the agreement has been reached between prime minister and the president. the two of them have spoken on a number of occasions and we are confident we have an exemption from the tariff and why wouldn't we? i mean, australia is a country that has a free trade agreement with the united states. we have a trade deficit with the united states. and have effectively run a trade deficit since the late 1950's. we have no tariffs on u.s. goods or items coming into australia. you don't get a fairer, more resip crow call or better trade deal than what the united states has with australia. on that basis plus the fact the prime minister and the president have spoken we're confident. >> what repercussions may there be on trade and the global economy once those tariffs are imposed? >> there is some uncertainty. let's be frank about that. we don't ultimately know who is going to be exempt at this stage.

from what i understand a decision is imminent, so we should have that cleared up in a relatively short order. but that not with standing, just say, for example, there were actions taken, the imposition of tariffs on steel from certain countries. we've already had some of those countries and some of those ocks say they'll retaliate with proportionate action against the united states. i think we just need to wait and see. ultimately any barrier to trade is going to lead to lower economic growth and lower jobs. we'll just have to wait and see. >> the international institute of finance has said it projects 3.5% growth for the global conomy but the key is trade. do you see trade derailing the global economy in any way? >> well, look. hopefully not. trade historically has played a big role in the global economy but at the moment we're seeing

in many respects coordinated global growth. really the last few revisions have been upwards in terms of what ther a he expecting for global growth. we want to ensure that trade will enable that growth the potential to be realized. we just have to wait and see ultimately how this plays out by the u.s., what china does, what europe does. from australia's perspective we are a grow trade nation. we are a very firm believer in our -- that economic growth is dependent on access to trade. we continue to diversify export markets for australian goods and services. we are very forth leaning when it comes to trade. >> of course secretary mnuchin will be on his way to china. what can china put on the table for mnuchin to go back to trump with? what do you hope? >> that is going to be interesting. clearly, china has made on two

or three occasions quite strong statements that china plans to continue to liberalize their economy. we've heard president xi say the people's congress that he nts to ensure that china continues with foreign investment and offer its economy to the world. later in november china is having the big import expo, the first time they've taken that initiative on a global scale. saying ems to be action we want investment. certainly australia's experience with china has been very positive. we have in place a free trade agreement and that sees a number of sectors where australia has been able to invest directly into china. that's been a big thing for our country. >> china of course an important partner for australia. could australia be caught in the crossfire between the u.s. and china? >> i don't envision that happening. australia has had and continues

to have really strong trade investment relationships with japan, korea, with china, with the united states. i mean, consider that the four of them don't always see eye to eye on a range of issues. australia, i think, though, is recognized as being an honest broker. we're consistent. people know where they stand with australia. we are an honest broker. we don't play games. i think that ultimately countries accept and respect that has been our approach. >> i want to touch on this. the u.s. has said there is a possibility though i think it is slight that it may rejoin to agreement but it wants renegotiate. >> let me say at the outset australia and i think all 11 members of the group would welcome the united states to come back to the the table but right now our focus is upon making sure that we can bring this agreement into effect. each of us is working through our domestic ratification

rocess on the agreement. it would bring the 11 into effect and be a terrific agreement. i don't believe there is any effort at all from courns saying let's put that all on hold while we renegotiation access. there are a range of things including intellectual property or the suspended provisions to enable the united states to come back into the fold. we want them but we have an agreement. we're going to bring this agreement to effect and then see what the u.s. and other countries, might be thailand, the philippines, colombia. a range of countries. could be the u.k. all expressing an interest. >> what you're saying is you don't see the u.s. in t.t.p. >> no i'm not saying that. i am saying in the current window of opportunity between now and when the agreement comes into effect which as i said is either late this year or probably more likely early

next year, i don't see an opportunity for us to renegotiate for that to happen. ter that, it may be looked at. certainly not between now and when the agreement comes into effect. we've all put a lot of effort into getting this agreement over the line. at one stage it looked like it was all going to blow up. we held it together and put in a lot of work for this happen. >> one final question. if t.p.p. member nations aren't willing to negotiate, will it be more difficult for new members to join the organization? >> we're working through what the process will look like. australia is working closely in particular with japan on this. we want new members. the fact is that everybody who joins the t.p.p. will make the agreement even stronger. make no mistake. the t.p.p. 11 is a very strong agreement right now. that's part of why it see

recognized by a host of other countries. we've all put our shoulders to the wheel to do this. this is a good agreement for trade and applies rules across the region everyone can live with. we're all committed to that. if we can have other countries join, and there is quite a lot of interest, it will help the agreement get stronger in the future. >> thank you so much for your insight today. back to you. paul: all right. thank you haslinda, chief international correspondent for southeast asia there in beverly hills. up next, we are going to go back to the conference to discuss the outlook for global trade. this is bloomberg. ♪

>> i'm looking forward to a very frank discussion on the trade issues and to continue those discussions and see if we can reach a mutual solution to this.

i think the good news is president trump and president xi since mar a lago have been talking about the trade imbalance. president xi acknowledged our objective is to have a more balanced trading relationship. i think the two presidents have a very close relationship. i am going over with our large economic team to see what we can get. >> i think long-term thinkers look at this situation and say both countries need each other as trading partners. both countries want a trading relationship that succeeds in a rational manner. i hope that is what prevails. >> this will actually fill a lot of jobs in america if there is a trade war because the tit for tat trade tactics really will cause a retaliation. in fact, in china, they have just put tariffs on soybeans. it is going to hurt american farmers. >> big name guests there talking about china-u.s. trade

at the milken conference. now let's head back to the conference in beverly hills with our chief international correspondent for southeast asia. trade a big theme at the event this year, obviously. has linda: it is, paul. our next guest says that he is optimistic that trade is actually picking up. he should know. me joins me right now. -- he joins me right now. good to have you with us. you are optimistic about trade despite all the tension in the u.s. and china. why is that? >> while all the tensions are going on trade is going at a stronger clip in our world where we all trade. we've seen this since maybe 2010. more on o synchronize basis, seeing it across all regions now. >> does it mean that you are investing more --? >> we are investing more in places like iraq, mexico,

honduras right now where we're seeing good growth. still in mexico. we have to see what happens with the negotiations. but in the middle east we're seeing some good growth so we're investing there as well. >> are you not concerned about, you know, the trade tensions? >> i didn't say i wasn't concerned. i said it was going right now. but of course i'm concerned. we're watching very closely what happens. with nafta. and a trade war between europe and u.s. and china won't really affect the way we operate but we think there may be a spill over effect. but of course it's concerning. >> how would that weigh on your operations? >> well, it would slow things down, especially mexico depending on the outcome of nafta. in areas we feel are not going to be impacted by any trade action we're investing. we have to.

>> looking at the philippines, this build, build, build strategy how do you hope to capitalize on that? >> we already have the capacity to handle that program since we've been investing in the philippines. as soon as that program gets started, when it gets started, it is starting to roll out now and we're ready for that. >> what do you mean by you're ready for that? what project might you be interested in? >> ready means for the logistics side. we are ready to handle any additional growth or capacity driven by build, build, build. and we're still not, you know, we're very wary about straying from our specialty. so we have to see if there is anything really that is along our line for us to get interested in. >> and this is very important for the philippines if it hopes

to continue at this pace of growth or even faster. >> absolutely. >> but it has been pretty lack luster so far. infrastructure projects have not taken off in a bigger way, the way it should. what do you think needs to be done to expedite the whole process? >> well, infrastructure should have taken off in the philippines 20 years ago and it has not. what is needed now is a strong political will to get it off the ground. >> how do you think the president has done? >> i think he has a very strong chance of getting it done or succeeding. and, of course, this is a key ingredient for the success of the infrastructure. but we have a lot to catch up on. >> now, also, in the business of resorts, what are the rospects for that? do you see that continuing to grow? >> we are seeing a much stronger year this year with the influx of tourists from

mainland china, korea, all over other countries in asia. that's where we're probably going to make even a larger investment to meet the growth. >> and also looking at the markets elsewhere outside of the philippines? is japan a possibility? >> japan is probably the only possibility in the near term. but implementing rules and guidelines still have to be released by the government. >> why japan? >> well, it is the key to the gaming is that we have access to the local markets. and the japanese will allow locals to enter the casinos. so that's the key part of this. >> how concerned are you about the political situation in japan right now? >> i think japan's political uncertainty doesn't really impact what goes on especially in this gaming industry.

i think politics will be only as far as the regulatory environment --. >> all year you talked about importance of chinese markets. have we seen the worst of the government spend down on chinese quarries and the way the casinos are run? >> i think that's more a concern for --. >> you don't see a trickle effect? >> no. this is a large, local market. we have a large korean market on mainland china. mccall doesn't really have a local market in china. so any turning off of the tap impacts them more. because when you go to mccall, it's obvious where you're going. if air going to singapore or the fill pings, this -- or the philippines, there are other reasons to go there. >> we have to leave it there. thank you so much for your insight today. we're cosming to you live from the milken global summit in

beverly hills. betty? handing it back to you. betty: haslinda, thank you so much. our chief international correspondent for southeast asia there at the milken conference. lots of great guests. we'll continue to drop in at the milken global conference and speak to top financial business and political guests including the north star chairman, the thrive global c.e.o. ariana huffington, and also the former microsoft chairman and c.e.o. steve ballmer. lots of great guests coming up. stay tuned. this is bloomberg.

betty: good morning. you're watching "daybreak australia." quick check of the latest business flash headlines at this hour. the former c.f.o. of autonomy corp has been convicted of accounting fraud in the $10 billion takeover by hewlett-packard six years ago. a san francisco jury found him

guilty on all 16 counts related to the deal. autonomy was the u.k.'s second largest software business when h.p. came calling in 2011. however, its value was later written down by almost $9 billion. sonic is to pay $280 million to resolve allegations its in flight entertainment unit hid payments to consultants in the middle east and asia some of whom did little or no work. the parent company will pay $143 million to the s.e.c. hile avionics will hand over a settlement to the justice department for violating the foreign corrupt practices act. that is it from "daybreak australia." we are going to have regular updates throughout the day. as you know, most major markets are closed today for the labor day holidays. australia, new zealand, and japan still up and running though through the rest of the session. this is bloomberg. ♪

>> it is 7:00 a.m. in hong kong account a.m. in sydney. wall street opened, a busy week on a down note. stocks lower by tech and industrials. the s&p 500 index finished monday at session lows led downward by stocks including boeing and microsoft while the nasdaq sank beneath the weight of broad bassd tech clients. apple was the bright spot ahead of its earnings report on tuesday the dollar seeing its best month since november, 2016. the trump administration is to announce later on tuesday which friendly nations are to be exempt from tariffs on steel and aluminum. the commerce secretary wilbur ross has said some allies will be spared but not all.