♪ haidi: her to one claims and -- president erdogan claims a one-man rule, but opposition [indiscernible] unleash $100 to billion in liquidity. with the pboc confirming a cut for many banks. haidi: the u.s. and china going -- that you warns of a breakdown in global trade. yvonne: production increased close to one million barrels a day. haidi: hello from sydney where

it is fast 8:00 a.m. -- it is passed 8:00 a.m. we are a few minutes from the first major market. yvonne: it is past 6:00 in hong kong. after a volatile week in asia, we are starting muted. pretty much a lot on the docket when it comes to the trade front, president trump threatening the e.u. with auto terrorists. -- tariffs. we also have a focus in turkey. haidi: as you mentioned, we had that move from the pboc as anticipated, a reserve requirement for some of the big banks to unleash liquidity, watching up for that and the impact. when it comes to the u.s., it was about that lead, expectations out of opec. yvonne: it was, reaching some type of agreement. iran caving a bit but still

implications on what this means for the oil markets. can they raise production by $1 million? -- one billion barrels? -- million barrels? rallying .5% friday, the s&p up five points. the tech stocks of the nasdaq of 1%.ower, down 1/5 taking a look at the scene when it comes to turkey. we can see the moves in the lira. with the president winning a new term, absolute power, we are strengthre that lira up 1.3%. we will see if there is any respite in the currency given this election result. watchingd certainly for the rest of emerging markets. in terms of the fx side had a reasonable end to the week.

let's take a look at asia because it is that seem of dollar weakness for a third straight day that will inform the start of trading in new zealand. flat, theing pretty kiwi dollar at 69.16. the index down for a third session. significant to, looking positive . it has been a strong trade when it comes to the energy sector. that has been up 40% when it comes to shares in sydney, watching for potential reversal of that one year, 40% higher but watching the reversal given we priceslook at how oil after the opec meeting. the aussie dollar is still under the $.75 level. let's look at commodities. gold is interesting, close to six month lows. the correlation in the relationship with the dollar, the lowest in 2016. we saw this going into brexit and there could be further

losses for the precious metals. new york crude 58.45 after an agreement to add close to one million barrels a day to the market, but we are not sure where that is going to land, the addition of new surprise -- new supplies. looking at broader commodities, precious model -- metals and base metals seeing gains in that session. let's get you to first word news, paul allen. paul: china's central bank has confirmed [indiscernible] $108 billion in liquidity. the amount of cash some lenders must hold will drop by half a percentage point from july 5. the aim is to support small and micro enterprises and promote the debt to equity swap program. this calls the move it fine tuning. -- a fine tuning. the trade battle between the u.s. and the rest of the world raises the risk of slowing a

vibrant american economy. president trump's threats of tariffs on chinese goods and the levy on e.u. car shipments would cut gdp growth this year. the e.u. said it is ready to retaliate to u.s. threats on the 20% to you plan -- to european cars. they say the block is not treating the u.s. unfairly. the dispute between washington and others set to escalate with strength replacing rules for the basis of trade. e.u. officials are in china for high-level trade talks. got whatbia and russia they wanted out of the opec meeting to increase reduction. the saudi energy minister promised to act decisively to keep oil under control. that signals a supply boost approaching one million barrels a day. but iran does not believe that the oil will get waivers from the u.s. under the sanctions

imposed by president trump. trump iseve president against market fundamentals, against the market, the free market and not the benefit of even consumers. the high-level price by the action [indiscernible] paul: malaysia's prime minister said fair value for the ringgit is 3.8 to the dollar. that is the previous government's as well, from the financial crisis. it has not treated at that level since 2015, but the current exchange rate for the sake of the state of the world economy [indiscernible] itwe would like to think should be done naturally. >> what is the fair value of the ringgit? >> [indiscernible] paul: you can see more from our

exclusive interview with the prime minister later on daybreak asia and the special session on friday 6:00 p.m., 8:00 watching in sydney. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. haidi: thank you so much. the turkish lira is higher as the president claims a new mandate to govern with sweeping extra powers, but his opponents are alleging fraud. they say the president has 53% closestote, 231 for his -- to 31% for his closest challenger. we are getting some lines from the republican people's party, ideology he won but saying it was not fair.

you are seeing pictures of the aftermath. the leader of the people's party saying he conceded to mr. boardwalk -- mr. erdogan. a former istanbul bureau chief, how sweeping is this election victory? sweepingk it is more than was expected. there were two elections, one for the presidency, one elementary, and the opinion polls suggested the president roundnot win in the first of voting where you need 60%, and he did. the opinion polls suggested his alliance might not win a majority of parliament, and it did. so it was better than expected. that hisdrawback is own party did not win up you are majority. -- a fewer majority -- a pure

majority. it was a pretty sweeping win otherwise. yvonne: what can't [please stand by] of policies can we expect? area ofhink that is the policy people will be looking at most closely is because before the election, the lira, there was a serious run, lost 20% of its value. the president resisted raising interest rates, then he kind of conceited to the central bank in the last few weeks and the central bank did raise interest rates, but the president said he would take her and direct control of interest rates. from everything we know about what he feels, they will not be going up anytime soon because he has consistently argued lower rates are needed for the economy, which is the opposite of what most economists say.

haidi: is it fair to say this might be a knee-jerk reaction? is volatility expected? ben: i think there will be volatility. they usually is in turkey. the fact that the president has retained power and there will not be a second round election removes a sort of political uncertainty. there was a drag on the market. the initial lira rally we are seeing reflects that, but there are not a bunch of unknown that investors are going to start wondering about. i don't think it is very safe to say volatility in turkey is over. yvonne: we will leave it there, thank you for the update. our economics editor joining us from istanbul for the latest. let's bring in cumberland advisor's chief investment officer. he will be joining us as our guest post from new york. thank you for joining us. seems like we have the selection out of the way in turkey, should

we expect erdogan to push interest rate cuts? how likely will easter the economy from traditional theories? we have not seen that from the president. seems like he has a different take. difficulty.s the official inflation rate is 12% or 13%. the unofficial estimates are double that. i have seen as high as in the 30's. when you are trying to deal with fighting inflation and trying to deal with your currency, both of which are in play in turkey, and you raise interest rates, which is the economic response reported, you get one outcome. now we have a political outcome. how this plays out with a higher

inflation, double-digit inflation remains to be seen. what happens in turkey with economic slowdown, which is destined to come. yvonne: we have a chart that talks about the volatility we have seen in the turkish lira. we can bring it up. we see the one week of volatility hitting the high we have seen close to the financial crisis. do you think this election was positive when it comes to the lira? we have eliminated the uncertainty talking the markets. .avid: the chart is terrific when you expect there would be settling down now the political outcome is known? the answer is yes, but the political outcome in this construction,ical he has 15 years and now he has in other term. there are questions, but this is a powerful man in a country in a critical place.

we are going to have more volatility. we are going to have interfaces and financial markets, interest rates in economic areas in turkey which are going to read down beyond the borders. that is not a good outlook. it is one that we would say great caution in investment in this region. you know at the same time we are hearing the turkish government is planning to slap additional tariffs and levies on 60% onports, up to additional liabilities because there is trade uncertainty that makes the waters even murkier. murky i guess in terms of the outlook? david: i think so. the trade on uncertainty that u.s.ow evolved from this policy of ratcheting up trade tension is now a global phenomenon.

we see it in turkey, but we see it everywhere. it is ratcheting up. how far, how much? how are we going to play this .ut remains to be seen we are in the rhetoric stage, but we are going from a rhetoric trade war to an actual trade war, and that is worrisome to me. haidi: stay with us and be with us throughout the course of this hour. cumberland advisors, staying with us in new york. still ahead, opec and allies have a deal increase for production. saudi arabia will do what is necessary to keep the market in balance. trade: could trump's battles actually be a booby-trap for u.s. growth? this is bloomberg. ♪ ♪

haidi: i am haidi lun in sydney. yvonne: i am yvonne man in hong

kong. you are watching daybreak australia. president trump continues to escalate the growing trade tensions, saying the united states is insisting all countries that have placed artificial barriers and tariffs on goods going into their country remove those or be met with more than reciprocity by the usa. trade must be fair. the trade battle is beginning to raise a risk of a slowdown in a vibrant american economy. more with ros krasny joining us from d.c. is this the week the trade war gets off after months of and splitting threats? ros: i think this is kind of the week where the rubber hits the road. president trump just set the table again with his tweet. on friday a big deadline where the u.s. is expected to put investment restrictions on china

and to move ahead on so-called section 301 actions against china on what the u.s. considers to be intellectual property. those are really big moves, then beyond that, a week or so, july 6, will be the day when tariffs come into effect on $34 billion in chinese imports. then china's tit-for-tat comes after that and more u.s. tariffs. it seems the escalation is about to take wing here. said, kind of a threat to u.s. growth and the growth in other countries. haidi: is there any hope of either side pulling back from the abyss? ros: it seems like either side or if any side wanted to pull back from the others, it is china. there was an interesting story

from the south china morning post that china does not want to target u.s. companies who have invested in their economy, plants there. in the trump administration there are free traders who would like to get senior chinese officials back to the u.s. for more talks aimed at kind of stopping the dispute from escalating but it is unclear if they have much of a foothold. privacy a battle of between the globalists, free traders and protectionists. seems like the protectionist navarro is theer ascendancy of a very kind of harsh report. his group this week said china's impact on the u.s. and the rest of the world, it kind of seems like that is the viewpoint that is prevailing for the time being.

haidi: it doesn't seem to be negotiating at this point. thank you. ros krasny, our bloomberg news editor. let's get more. the cumberland advisors chairman is here, chief investment officer with us for this hour. you can have the rhetoric, the back and forth, but how difficult is it to make investment decisions? david: it is becoming more and more difficult if you are in the global structure. roz just distinguish between an impediment, a license, a rule, restriction, and the tariffs on it which is the price. the price impact alone have effects already. if you are in the middle of construction of constructing a pipeline in the permian, which is going on now, and you have got a repricing of deals, and

you have the steel to complete the pride line coming from -- the pipeline coming from abroad and have a capital structure in place, your derailed. you do? you scramble to save, you don't make the next deal, you wait until it settles, and that is when the slowdown starts. effect just the tariff on price. when you can't bring in this deal or you have to have a different investment restriction, you double down. this is a multiplier effect. i don't think we have even seen the initial shocks you. -- yes. t. haidi: i want to throw up a chart that shows the mass exodus from asia. seeing the familiar refrain when it comes to the bond and fx markets. why are we seeing this bearishness when it comes to emerging markets, given so many

have strong fundamental, to mystically driven dogma stories that -- domestically driven dartmouth stories? is this a strong dollar story? david: one is, especially if there has been borrowing by a country denominated in dollars or tied to dollars. the payback for the borrower becomes much worse. that is one issue. the second is if we have a at the of global growth same time we have internal domestic price pressures from tariffs, the emerging markets suffer the most. the united states is $20 trillion in economic size, most of it is domestic, most of it is services. we have a buffer. larger economies have those buffers. emerging and frontier markets suffer the most in a trade war

scenario when it gets to shrinking or reducing the rate of growth. that is what is at risk here. yvonne: we see that risk between the u.s. and em with china, especially with the a share market. we are almost entering into a bear market. let me show you what we have seen. u.s. stocks set to outperform china for a 10th months now and the market thinks given the fact china's surplus with the u.s., beijing has more to lose on trade. you think markets are right to bet trump is going to win? david: i don't know how markets speculative or in a shorter term swing trade because the outcome is not who loses less or more. the framework is everybody loses. the goal of leveling tariffs, eliminating them, reducing or

eliminating barriers is a noble one. how do you get to it? through negotiation or do you get to it with rhetoric, insult sometimes? with these techniques, we are getting used to the twitter war and something new to contend with in the financial markets worldwide. kotok ofavid cumberland advisors. this is bloomberg. ♪ mberg. ♪

yvonne: a quick check of the business flash headlines, chinese online food giant said to have filed for initial public offering. the restaurant service submitted documents for a share listing on friday. they were previously said to be targeting a fund-raising of expelling dollars, evaluation of

$60 million. they did not specify numbers on friday. haidi: xiaomi starts the reach out on monday. they have not set a timeframe through chinese depository shares per that could hurt china's ambitions for the tech giant. last week's withdrawal from the plan to tap mainland investors over affected the fundraising goals. didi launches australian operations on monday as it pushes ahead with international expansion plans. in rival starts services melbourne and wants to use feedback from drivers and passengers to shape offerings and other australian cities. this is being bankrolled by a four billion dollars defending round. oil diplomacy ends in production increases. the latest on the weekend's opec

meeting and what it means for the oil markets. this is bloomberg. ♪ this is bloomberg. ♪

8:30 in sydney where markets open in 90 minutes. looking at futures, mildly positive. the index is close to that decade high. sydney futures up .2% after finishing the friday session lower. i am haidi lun in sydney. in hongi am yvonne man kong. it is 6:30 a.m. in the city. you are watching daybreak australia. opposition party says it knowledge is the president won sunday's election but said it was not a fair race. the state media gave him 53% of the vote, but the ak already

could not reach its target in parliament. the revised presidential system giving him sweeping new powers will be implement it quickly read he plans to address reporters in ankara shortly. the lobby groups have told theresa may that they are concerned time is warning out that running out for a brexit deal to protect british jobs. the primus are warned in the absence of clarity, businesses will have to plan for a worst-case scenario. they have promised a white player -- may has promised a white paper. bitcoin off of the low, which followed renewed worries about government routinely and skepticism from central -- scrutiny and skepticism from central bankers. falling below 5000 $20. that was from december's record high. japan ordered trading venues to improve anti-laundry measures.

china's drive for cleaner skies has pushed japan to be the largest buyer of natural gas. china reported 39 point 9 million tons in first month of the year compared to japan's imports of 34.5 million. the pollution force millions of homes and factories to replace coyle -- coal boilers with gas ones. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. ♪ haidi: thank you. let's get you a quick update on the markets in terms of how we are setting up the week in asia. ,ew zealand getting underway flat at the moment when it comes to kiwi stocks. the kiwi dollar 69.17, the worst performer in the g10 space, rncn we are looking at an meeting. from dovishmessage

this, we will see further downside. the sydney futures .25% higher after the lower finish friday. looking at the energy sector. the lead on oil prices, going into the energy trade which has been up 41% the past year in australia. 74.39.sie dollar let's get more on what we should be watching as trading gets underway. adam haigh is here with us. we had that largely telegraphed move. when we did not get it the end of friday, markets were disappointed. we did get the triple cut. adam: we did and it is great. it is delivered and here now and will have an impact clearly. there will be more to come. a lot of people are expecting another one to come later. ultimately the problem is the deleveraging issue for chinese authorities remains. it is a mute point now whether the equity market can get support. have a look at the chart on the

gtv library. the shanghai composite is still in a soft place, and it will -- a tough place and it will take a lot of change in sentiment to get the pickup. we will see if we get relief today, but longer-term it is about another tricky situation that the authorities -- the economy is slowing before you get discussion around impact of tariffs. that is what is crucial to a lot of people especially for investors. -- foreign investors. i think for us to push higher, that sentiment has got to swing around and there is no evidence that has changed significantly. yvonne: the triple ark was already priced in. turning to opec, we have got this joint agreement. we saw the firmly stronger oil price from close to 5%. is this as far as it goes when it comes to crude prices, or is

the reason to believe we could be over $70 for wti? adam: it has been a slow grind up there that big move we saw friday, it was smaller than expected, but it is enough to trigger an almost 5% move in crude which is huge on a single day. whether or not we are testing that $70 level at the moment and in future months, it relies on whether we get more of spread increases. this chart shows you the difference between wti and texas crude. it is very crucial at this point whether you get little bit of a buyout. whether it is bullish or not, it comes back to the broader picture about what the oil price means for global inflation at this point, in the cycle. inflationary pressures, starting to show in many economies that many people struggling with

inflation, not as strong as they might like and central bankers continuing to talk to that theme. if oil prices go into the 70's and higher, then clearly inflation fundamentals upset that, that is good. ,vonne: thank you, adam haigh the global markets editor. don't forget to check out our library for the church adam showed on gtv -- the charts adam showed to us. still with us is david in new york. given how vague this communique was from the opec members, tell us about this one million barrels increase in production and what it could mean. it seems counterintuitive to the oil price reaction. david: i think you are right. adam the word, and it was sustained. therein lies the key. are we going to have sustained pricing above $70?

are they going to maintain that, and the interplay with global restraint of growth, where you have china as an importer in the u.s. to become the largest -- we are a huge producer, exporter. if a deal could be made, especially in natural gas which the u.s. has in abundance, this whole playing field changes. we are not so sanguine about a higher oil price. forces are in place in our firm to keep a lid on this, so we don't see much above $70 and with any economic weakness, we may go lower. surprisingly lower if trade wars slow worldwide activity. haidi: did you think this agreement, were enough to meet the challenges opec faces, the second half with supply in iran and venezuela, also, we are

heading into the hurricane season in the gulf of mexico. david: hurricane season always in play, but that is a temporary and am in on. -- phenomenon. venezuela is a train wreck underway. .exico is another issue we have an election in mexico. politics to change in mexico. the interface between mexico and the united states in natural gas exports is a critical one, and so if we accelerate or ratchet up a trade war with mexico, has a lot of side effects in the energy patch including the ability for the u.s. to export through mexico to places in the pacific. i am not sure -- i am not sanguine about this. i think uncertainty as high. it is hard to predict. would not see much upward pressure in price unless this whole trade war thing settles down.

it always strikes me as unusual that opec would not be setting policy with the same degree of caution that the what -- that the fed does. i want to show this chart which paints a picture of the nominal one million barrels a day, 700,000 barrels a day at the end of the day, that we have reached agreement over the weekend. does it make you reconsider any positions you have in energy portfolios? that is the of performer with australian stocks. that is largely on account of this rally in crude. does that derail similar trade globally? david: in our portfolios in the u.s. we were overweight the energy sector. we had a nice run as you did in australia. we have taken those profits and taken down those weights. once we see how the trade war issue plays out, we would reinstate them, especially focus

on domestic u.s. exploration and on natural gas. in we want to focus here domestic orientation because we have this high uncertainty, the international arena. that is the decision we have made in our firm. haidi: does the u.s. shale industry strike you as being a swing producer? david: you would think so, and if we don't have impediments with the buildout of the infrastructure, the answer would be yes because we can expand largely and substitution between gas and oil can have an effect. if we slow down the expansion of energy infrastructure in the united states, and we talked about it earlier because we need pipelines. we need to build out. the trade tariff barriers and protectionism impair that progress.

note, david, on a related what is your feeling what the u.s. dollar is going to do and how that feeds into the commodities part of the story? david: i looked at the interest rate picture. you look at the g10 and the treasury yields, the u.s. treasury yield is the highest in the g10. interest rates are driving foreign-exchange flows. we know that in major central banks like the european central bank, we have extended out this negative rates and borrowing we have a very modest, long-term, gradualist approach. that would suggest the dollar has not peaked yet. the crosscurrents are if we get economic slowdown from trade wars. this is difficult. i hate to be so gloomy on this show. yvonne: [laughter] david: it is a pleasure to be

with you guys. i had to sit in the no smiling section on the airplane to come down here. [laughter] haidi: david, as long as you are not sanguine about coming on bloomberg, we will take your opinions. david: bloomberg is the best. haidi: there you go. david: here you have real news. [laughter] haidi: that will keep you on for the rest of the hour. us.d kotok, staying on with the largest ipo in two years is upon us. could it us are in a golden age for venture capital? this is bloomberg. ♪ ♪

haidi: i am haidi lun in sydney. yvonne: i am yvonne man. you are watching daybreak australia. global central banks, we will

bring back david from cumberland advisors, chief investment officer. we like him, limiting bloomberg television. we have been talking about how trade issues are so important for the market. we heard that from the fed .hairman while he was in sintra it seems like it was a consensus view from these central banks that he is hearing businesses are delaying investment, delaying. it seems like it was a consensus view from hiring given the prospects of a trade war. you think central banks moving forward will have a completed job given that we have seen at the trade front? david: it is the most complex situation of faces -- that faces major banks. in new york we know what they will do, stay this long-term interest rate. it has its effects are you the fed now wants to normalize, whatever that means. they are looking at the economy

with extended recovery. a look at the low unemployment rate. they want to get inflation a little bit higher but not a lot, and they want it for a little while but not a long while. at the same time the interface for the central bank and the united states is the external shocks, the things beyond their control. they cannot no matter how much money they print or don't, they can't affect the oil price. no matter what they do as a central banker, they cannot trade, barriers, protectionism. if there is economic contraction, our central bank in the united states has to face a problem. they broadcast another couple of hikes this year. i expect they are going to do it. what happens next year if there is real slowdown? that is the key. what happens if the trade

rhetoric ratchets to full-blown tariffs and barriers and imposition of rules? -- difficultrent to deal with. their models don't capture it. yvonne: it is interesting. we heard from the b.i. us, claudia barrio speaking about central banks, saying they need to normalize with a steady hand. as long as volatility remains contained, which we have seen so far already. that they need to tighten financial conditions were there, despite the trade front resort david: if the systems can handle it, yes. but you reported problems in banking systems, and we see them in china. we have gotten lots of news flow about difficulties in banking systems in europe are you there

is a question about a german bank. imagine that. if germany has to help save a bank, they are the ones who are always pointing to everyone else in europe and said you need to behave yourselves, look at us. i am not sanguine about the central bank extraction from long-term zero interest rate policies. it is extraordinary. in the united states we are shrinking the balance sheet at the same time we are raising a short-term interest rate, doing two things at once. the federal reserve has never in its 100 year history had to face doing two things at once and getting them both perfectly right. very difficult for central banks. haidi: i want to get your thoughts on the yield curve and its implications with this chart. 10, you see two and that over the longer end of the

curve. are you looking at the shorter and? does it prelude recession? david: there is this risk about inversion coming. i am not sure whether we will have that. let curve getting flatter. yes, they hike two times the rest of this year, short rates go up a half point, i am not sure long rates go up. they go up less. a lot of the influence on the long and intermediate yield curve and u.s. dollar is being driven by foreign investor choices because they are looking at their options. if you are sitting in singapore or dubai, do you want to own the u.s. treasury 10 year near three as a yield, or do you want to points?bund at 40 basis that is a gap driving investment decisions worldwide. we will have flickr for a while. -- flat urves

curves for a while. haidi: we are going to let you go. thank you. let's get you more on this very exciting tech ipo we have been talking about for some time. one of the earliest investors and largest shareholders and xiaomi are set for a one fall in the six-point million dollar -- x $.1 billion what about the decision to invest early on? >> we in this company [indiscernible] basically when we made the decision to invest in that company, that is the only idea, and the people. it is nothing. all of the institution investor or secondary market, they make the judgment soon, the number. so we can have another view is reacto observe how a user

to the inefficient, the company delivered to them. they don't know the company background. they have no idea, great entrepreneur, today, they know maybe this is a small studio. they are screaming about this. they are really loyal to the product. they take a huge risk, cost [indiscernible] to install. so that means our readings, we have already got market share from the competitor. even without affecting any hardware. when the company decided to raise funding and valuation, it is one bigger although they have zero. the could get enormous, return in the future. it looks very expensive but it is really cheap. >> how much money did you invest

in xiaomi? >> [indiscernible] million, so $100 that is something you can come from this. >> one of the most successful technology companies in china and you are a major shareholder at less than $1 million. >> this investment, the return is great. it is fantastic. we are very happy. , the challenge is not the history. capitalhat was venture co-founder richard luga -- liu. we will have more. this is bloomberg. ♪ ♪

yvonne: absolute goal-fest in

the latest matches. the england captain leading the race for the golden goose after that hat trick against canada. subscribers can get all the latest results at w cap go. you can see how you are going with your colleagues and our bloomberg presenters very time in the bottom now with all these anchors. also breaking news coming your way. haidi: commonwealth bank of australia say they will be undertaking a review of general insurance and attention to the wealth management unit. we had this flagged earlier this year. they were looking at relisting, saying the de-merged group will include the colonial estates so the asset management group as well as the brokering business. we will get more details on that but think the demerger will not affect shareholders. they will not retain a holding in the cfs group after this.

looking for more details on that but in the meantime, the chinese ridesharing service didi continues its asked -- international rollout today in australia's second-biggest city. paul allen joins us with more. they are starting slowly. paul: it has been a soft launch, they have been running in one city just an hour's drive from melbourne, trying things out. the australia, new zealand, we will take a pragmatic step two expansion. that is what they have been doing. australia will be the third market for didi after brazil and mexico. pretty aggressive discounts for people who sign up early obviously. 50% off for writers, 10% to the end of july. you will get a bonus for 20 rides in a week. the feedback in this trial in malvern will govern the rest -- in melbourne will govern the rest of australia.

haidi: where is the money coming from? paul: didi did have a capital raisepaul: around december last year, $4 billion raised. so didi valued at $56 billion in cash reserves of $12 billion according to people familiar with the matter. sloshing around to expand, but the market is getting crowded. we had not only over but -- uber but to others and if you are real traditional, you can catch a regular taxi as well. [laughter] yvonne: plenty of options. thank you. that is almost it for daybreak australia, but we are up with daybreak asia next. we are doing a marathon session. we have multi-asset strategy lee ferris joining us to talk about more on the trade front. haidi: also the optimizing of opec. talkinglio manager

about this. he said opec is transitioning into a new era to deal with the impact of u.s. shale. we will get his thoughts on the 700 million barrels a day addition. that is it. ♪ what's a gig of data?

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>> it is 7:00 a.m. here in hong kong. welcome to "daybreak asia." an election mandate as turkey enters an era of one-man rule. it was not a fair race. than $108nleash more billion in liquidity with the pboc confirming a triple archivist for many banks. from australian headquarters i am haidi lun. we kick off the brand-new trading week. u.s. and china playing a game of chicken as