♪ >> the dollar soared after president trump attacked the fed. he says he is not happy about rid arises. >> microsoft is rising after hours as it's clouded driven turnaround continues. --es popped $30 billion topped $30 billion. >> the eu identified trade targets in response to washington's friend duties on cars. brussels says nobody can win. >> chip industry bellwether taiwan semiconductor trims its

forecast for revenue and spending but says it sees little impact yet from the tariffs. dublin hello from sydney, where --is just past 8 a.m., this hello from sydney. it is just past 8 a.m., this is "daybreak australia." happy friday, ramy. ramy: and i am here in a new york commemorate is just past 6 p.m.. haidi, today was a little bit risk off, we saw the markets take a bit of a breather here after three days of gains. .4%, still was up managing to stay above the psychological 2800 mark, but really for the markets, this was week.rst day in the past

the nasdaq was about .4% down, the thanks all following except for apple. let us take a look at what is --pening for all currencies ngs all following, except for apple. fed,d trump criticized the pushing the dollar down, then up again. they have a difference of budgets, but look at the british pound, actually flat. it was down about 14% after retail sales missed estimates. the euro is similar as well, but isly's premier says the euro actually irreversible for italy, so that is some support for the currency. a biteld falling to 2.84%. >> yes, it was interesting to see the reaction to the dollar, trump trampling on the fed's independence with those remarks. he seems to get the nuance that perhaps the dollar strength is

causing the problem in the dollar yuan. the dollar being too strong, therefore at a disadvantage for the u.s.. but take a look at how it is setting up in asia, it will be the dollar story as we continue to look at the reaction across the fx in this part of the world. we are seeing new zealand trading pretty flat at the moment. at 67.48.ollar kyrie futures looking a little bit more positive, and we saw the aussie dollar with a brief stellar job the numbers, but that lost steam in the overnight session. taking a look at what else we are watching, in terms of how the dollar issue is playing out differently come the commodities are slumping again. we're nearing correction territory with this resurgent dollar story, lingering trade

tensions creating some headwinds. looking at the biggest culprits, looking at the bloomberg commodities index. suffering, and we are also seeing that nothing when it comes to gold, and oil continues to fluctuate as well. let us get you caught up with the first word news. drawn european union has up a list of american goods to place tariffs, if they are not able to pursue president trump to drop duties on foreign cars. this could trigger a 20% tariffs which president trump has threatened. washington already hit them with steel and aluminum tariffs which led to levees from brussels. >> and them for an truth of trade is that ultimately countries do not trade, do.anies and people it is as simple as this, countries either create a

environments for trade, or they don't. other way, it is a general public and citizens will feel the impact on the pain of every conflict. chieftain's new brexit has had their first talk in brussels. he met with michel barnier, the eu's executive arm, to prepare for all possible scenarios including one where britain crashes out of the bloc without a deal. and, korean company has said to have found a sunken warship triggering a warning to investors. with unconfirmed claims that it could be carrying $130 gold.n worth of the group released a video showing the ship which sunk off the coast of korea in 1905. stocks in steel and gold moved news.or on the --some of it is

[indiscernible] reporter: global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am jenna duggan heart, this is bloomberg. ramy? jenna, thank you very much. we have earnings to talk about, most importantly, microsoft. su keenan is here for the. , walk us through what we saw with trump criticizing the fed. stocks starting to edge higher, then trump comes in with a comment that there was no lasting impact at the close. at this snapshot, the dollars three-day rise was probably the key driver for the day. taking a look at financials, that was the biggest recliner in the market and in the s&p 500

sectors. small caps actually did well. looking at some of the big movers, financials were front and center. not only did you have american express which was a drug, there warnings -- the outlook for earnings disappointed there as well. the ceo asked for patience from investors, that things would get better, but he certainly did not seem to get it in his latest trading session. it affected all the banks. travelers, express, e*trade, all impacted. taking a look at some of the other big movers, earnings were a big driver. , and equipment company, came in with strong earnings. ebay came up with very mixed

second-quarter results, while the online marketplace the earnings per share, they reduced their revenue guidance. it has a lot of analysts concerned. amazon beating it up a bit, which makes it take a big hit, the worst decline in two years. amazon had some positive news, which continue to carry it through this session against the tide, i might add. ramy: in the meantime, we are talking about the stronger dollar over and over again, and it is finally getting to the market. many of the commodities are in correction territory, namely copper. crossed into a good high. follow metals took it on the chain in this traded session. it looks like they are moving higher or rebounding. charts,at the intraday first up is copper. vf we look at the bloomberg gtb

library of charts, short on copper, that is what hedge funds were, short on copper as of last week. to the 6000 per metric ton mark, and is headed for its biggest monthly drop since 2015. gold crashed through the 1220 mark also. we told you yesterday that. the right will get a lot rougher, according to many different analysts, predicting that it goes lower from here. looking at oil, the story with low as had been lower as 68 in its most recent session, then it came back toward the end of the day, on a lot of the different stores out of saudi arabia. this chart shows that metals in general have gone from bad to worse maybe on the concern about the trade trouble, the conflict

course one who is of of the biggest consumers of our exports.- metal you can see the bounce back from the $68 per barrel mark which reside yesterday. saudi's coming out with comments about all the talk of supply is without basis. the weakening dollar is looming as well. su, wei: saw a rise due to cloud for microsoft earnings? su: absolutely. it began to move higher, and again, there was a lot to digest in this report. but the big takeaway, with analysts now getting investors -- giving investors do. it, is that it was a huge win, a

cloud-fueled turnaround there are much in play. it has been a strong chart year to date. some of the headlines, sales were up 17%, exceeding the $30 billion mark for the first time in the history of the company. .s sales were over $100 billion haidi: thank you so much for that, su keenan, with a wrapup of the action. there were other elements overnight, such as donald trump's comments about the central bank, displeased with the rate hike trajectory, as well as a strength of the dollar. let us get more from greg sullivan, our bloomberg washington reporter. the white house was quick to issue a statement saying that the president does in fact support the fed's independence. but these comments seem to be trampling over that, don't they? greg: that is correct. they were quick to go into damage control mode, the spokeswoman saying that trump

said he was letting them do what they feel is best, even as he was voicing discontent with the rate hikes. the white house spokeswoman also said that president trump's feelings on rates and rate hikes were long-standing and well-known, and would not play into any kind of fed decision. but we know that central bank independence is held up in developed countries as very important. you don't want central bankers getting into the political area. so thi any future action could be criticized after these comments from being trump influenced. they do seem to be in line with his willingness to this regard precedent, and his -- disregard precedent. that is likely to play well with his political base. ramy: speaking of his unorthodox approach, the white house announced that he has now invited president vladimir putin, despite all the

controversy about the helsinki summit. optically and politically, this is opening up -- shall we say, i can warm's? greg: it was a surprise announcement, especially for the timing. when reports came out of that he instructed his national security adviser to invite president putin to washington this fall, the same day that the senate took a protest vote against trump's apparent willingness to consider a proposal from putin. in the summit, he proposed letting the u.s. question u.s. officials. the senate expressed unanimously their opposition to about in the vote today. the has been a lot of pushback since the helsinki summit, and trump's apparent coziness with russia. some in the administration are unwilling to defend him, or as a perception is, that he is too

close to russian president vladimir putin. ramy: and out of that summit, we learned about the proposal from putin about ukraine and eight referendum possibly happening there. possiblyy is that going to be accepted by trump, or what it russia mark greg: first of all, we do not know what happened in the meeting. would it? greg: first of all, we do not know exactly what happened during the summit. is supposed to have proposed a referendum on ukraine to president trump, which would likely face an uphill battle amongst ukraine and the country's european backers and potentially lawmakers who are supportive of ukraine, especially given today's protest vote. it seems like there will be pushback against any such proposal. ramy: bloomberg washington

reporter greg sullivan, thank you very much. still ahead, rush hour for industry groups lining up to oppose president trump's plans for car tariffs. we will hear from the national association of manufacturers in just a bit. haidi: and, we will be talking market strategy. this is bloomberg. ♪

♪ high daybeds here in haidi: this is -- this is how futures are shaping .p this morning in sydney ramy: i am ramy innoncencio here in new york, you are watching "daybreak: australia." wallw stocks fall on

street, with the dollar swinging between gains and losses, but this is off course after president trump expressed his frustration with fed rate hikes. we are joined now by george trolls, founder and ceo of shoals -- george schultz. miss one up, you just wait a couple of days and you are up again. but we have been trading on a tight range for the past few weeks. george: yes, there's right. i think since late january, early february, we are starting to see some volatility this year markets. not off that much on the broad indices, but i think it is time for a bit of extra caution, a relaxationof extra in the summer months. which are typically a bit more volatile. you with concerned are

the trade tensions? there was a hearing in washington dc on the tariffs, that the u.s. could possibly put on importers. are you overly concerned? do you think these will wrap themselves before the midterms? george: it is hard to say what the midterms will be like. it in the history of the united states, tariffs have been around for a very long time. in fact, the first act of the u.s. congress after passing the constitution, ratifying the constitution, was to put tariffs. than for a long time after that, they represented up to 95% of the u.s. federal government revenue. before the income tax came into play in the united states. tariffs have always been part of the economy. view, whethermy or not we go tit for tat or the go on a bit longer, will bring some of the other countries where we have relatively unfair trading relationships to the

negotiating table, and hopefully come up with better deals benefiting both sides. ramy: a lot of folks have been saying that this is a no-win situation for a lot of folks. as to where you think this might take us on the equity markets. saying 2800, 20 900, for the end of the year, but there is still a lot of time to get through, for the s&p 500? george: i think eventually there will be a deal struck with china , canadawith the europe and mexico. sometimes, it takes a bit of tough talk and positioning to bring them to the table. george, where you are not seeing sanguine reaction is across commodity pricing. i would like to bring up this chart that takes a look at base metals, and they were the ones that dragged bloomberg's

commodity index into oversold territory. seeing it pretty broad based, not just aluminium, aluminium,opper -- gold, copper. when you continue to see volatility in commodity prices, do you think it will continue. didge: yes, i think it really impacts asian economies. with china, we have entered near bear market territory, after hitting a high in early february. so i think these things that we are looking at, the commodity markets, the chinese equity markets, i think in fact that there are likely to bring leaders from parts of asia to the negotiating table. . haidi: if you take a look at -- where would you find a hedge? financials could do very well, to we spoke early this week

our guest who said that maybe we should look at the fundamentals and stop paying attention to the political headlines. are you seeing anything reassuring as to where markets have to go? george: not all companies have reported yet, but he are seeing some winners and losers due to the tariffs. certainly, a stronger dollar, goods,.s that export that is looking good so there is incentive to bring capital, road back into the u.s. one thing that concerns me is the fixed income market. interest rates have gone up seven times since 2015, and going forward into october, we will start to see some bigger quantitative tightening, $50 it may a month worth, cause a reset in the fixed income markets. ramy: i am glad you brought that up, because of course, mr. powell was in the sights of mr. trump earlier today regarding independence. what do you make of that? .

in our own bloomberg news reporting, there was a headline that said that this might actually push the fed to stay on track or even push even more? george: it is hard to say, i don't know that powell will he isday today, but certainly influenced by the president, so there will be something to watch for as well. ramy: thank you very much, george schultz, ceo of schulze asset management. breaking news, wherever you are, we have teamed up with twitter to launch tictoc by bloomberg. you have hourly updated top news reports verified by us. if you're on twitter, make sure you follow us@tictoc this is bloomberg. ♪

♪ a ramy: i am ramy innoncencio in new york. haidi: and i am haidi in sydney. you're watching "daybreak:

australia. ." offe t has included the competition with disney, on fox. comcast closing 2.5% higher in new york. ramy: iphone supplier taiwan semiconductor has trimmed its earnings outlook for digital currency. singleill rise by a high digit percentage, down from an already reduced forecast of 10%. chips may be vulnerable to president trump's trade war, but tss says it is not yet.g any big threats >> on a the first wave have been executed and we have not seen --

we have seen minimal impact for our business and our customers. fell in the new york. of 528w land orders planes, while airbus the 17 billion behind with 431 planes. they failed to complete unexpected order from air asia, and that the 100 plane deal needs more work. ramy: up next, microsoft kicks off tech earnings season with a strong report. next.runch the numbers but you know, it is the same story we have been talking about, it is all about the cloud. this is bloomberg. ♪ this is bloomberg. ♪ phones have made our lives effortless.

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♪ haidi: it is half past eight here in sydney, ranks up and just about 90 minutes ago for the friday session. features looking a bit negative, but it is a beautiful 16 degrees here in sydney. strong.di ramy: let us get the first word news with jenna. >> president trump has attacked the fred's rate policy, breaking with the tradition of avoiding comments on monetary policy. the dollar weakened, after he said that he is not happy about the fed slowing

rates. the fed has raised interest rates five times since he took office in january of last year. oil pushed higher in new york after saudi arabia pledged not to flood the market. they said that claims that they will step up their supply or basis. brent crude has fallen this month due to the trade war, and the specter of renewed oversupply. malaysia is said to have issued arrest warrants for two for my of the 1mdb investment fund. we are told that evidence to the x council and former executive director. police say that the domestic investigation is nearly complete. at least $4.5 billion is said to have disappeared and malaysia says, much of it is gone forever . take a conservative

estimate, i think we will only recover around 10%. perhaps, if we are lucky, it could go up to 30%. but at the very least, 10%. >> indian stocks fell a second day after friday's no-confidence vote in the prime minister, modi.ra his ruling party saw a smooth couple of years in power, but now, the government is facing challenges. his home state -- he won his home state with a light majority in the last elections. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am jenna daggett heart, this is bloomberg. let us get you a quick update on the market, that are trading already in this market. trading in australia just got underway, the kiwi dollar at

7.47, the bloomberg dollar index showing that investors are not quite sure what to make of president trump's comments. he seems to be interfering with the mandate of the fed, saying that the rate hikes are not good . speech or is pointing a bit low, we have had two days -- two days of gains, and there could be a bit of a headwind going through in asia. the jobs numbers yesterday are not helping very much today. taking a look more broadly, you showing an effect from the jobs numbers, 13 straight months of export growth , weakening the yen. it had gone down about 5%, that helping with the export growth.

u.s. 10 year yield also moving three basis points on account of those comments from president 2.84 for the 10 year. thences are giving back previous day's gains, we are seeing some risk aversion going into the friday session in asia. let us take a look at what we are watching as the final day of trade gets underway in this part of the world. "bloomberg markets" editor adam haigh is here with us. one lineot this through from the securities journal, saying that china will tighten its stock market supervision in the second half. investors are definitely worried about it. adam, and it is definitely showing that they are second-guessing investors reaction to what is happening. we have seen a couple of changes this week. markets are most forcing the hand of some of the traders in

the market. their ubs downgraded expectation for chinese growth, and at the same time, completely throughout their window their expectations for appreciation and the yuan. completely flipping matt, and expecting the u.s. to continue its depreciation. as you can see in this chart in your gigi the library, the library, -- your gtv it is continuing to weaken the yuan. of course, it could be a policy tool. it wantshas said that to maintain his currency, and since they said that, the pace of depreciation has somewhat slowed, so this could be some sign of comfort. of course, policy, the expectations for what policy will be doing for the remainder of this year and next year, is one of continued easing. in that case, you would expect to continuecy to be under pressure, and there

are some indications, certainly markets, that suggest that it is under control, not being let go to harbor the authorities. that should be of comfort to some people. door ind them, next japan, we saw a weakness in at the yen, that has been visible amongst the trade tensions. it has basically rebounded to the levels it was at work in january. jp morgan now saying that he could possibly default even further? adam: is an incredible how weak remember theeen? context of escalation of trade tensions, it did catch quite a few people off guard the thought maybe the yen was going to play a traditional safe haven role. of course, that hasn't been the case. up theack up, pushing 112 -- 113 dollar level back to january.were in

j.p. morgan is making the case of saying that they see a similarity in the market and what is happening today, and what happened in september of 2017. looking at this chart in the gtv library, they say that this really points to a risk on environment, in which case you would expect further yen weakness. and as we had in november 2017, we had a rally in japanese equities on the back of that. they say that we are pretty much primed for that to happen. is notable addition to that the bank of japan's policy. we saw further indications this week of tapering continuing. although it is small amounts, it does add to the case for perhaps more people wanting to the to the short side of the yen trade, which of course, would favor japanese equities. ramy: that was adam haigh there,

"bloomberg markets" editor. do not forget to check our gtb library for the charts you saw onhat is gt tv the bloomberg terminal. microsoft saw strong third-quarter sales. sales and profit got a boost from customers signing up for more internet-based storage, processing and productivity software. we are joined by the bloomberg intelligence reporter. cloud, it about the looks like everything is firing on all cylinders? >> absolutely, not just the infrastructure side, but applications and even on premise products. . we have seen enterprise spending, very strong. when you look at somebody like microsoft, we saw a commercial pc numbers accelerate, something that you do not expect it this day and age. so you could say that broad-based i.t. spending.

microsoft growing 15%, to tens the software market, so these guys know what they are doing. tc sales, sotioned strange. the last time that probably any of us had a pc, was a long time sales.pc we are that about talking about enterprises. not the consumer side. but enterprises that have older versions of windows are upgrading to windows 10, which is what is driving it. typically, what happens is that pcs are are the low end of priorities in the budget, but cash one extra your balance sheet and the economy is good, you tend to spend. haidi: yes, in terms of how things will be the next year and the year after that, this is a pretty strong report. what do takeaways terms of what the future looks like for microsoft i think it will still

be good for them. i was looking at estimates showing that markets are looking at revenue growth of about 9%. but i think if the current trend stands, they could grow in the low double digits next year. that will be very healthy for a company of this size. haidi: thank you so much for bloomberg, our intelligence software reporter, taking us through the microsoft earnings. just ahead, industry groups are voicing their opposition to trumps plan for tariffs on cars imports. officials of the largest manufacturing association in the united states joins us next. this is bloomberg. ♪ tes joins us next. this is bloomberg. ♪

♪ ramy: this would be as much as $300 billion in trade, and if there is retaliation, it would be a serious escalation of complex, which is of nobody's benefit and to the detriment of us all.

>> we need the eu and us to come to the table to negotiate these terrorists, these barriers to trade, and get us to level.and playing field i am confident that we could have a zero tariff both ways, that would be a great opportunity for us to develop this industry further. certainty andneed stability, that is what supports a strong investment climate. i am concerned that prolonged uncertainty even before tariffs are imposed, could also serve to hurt our opportunities to continue and invest and export. ♪ haidi: politicians, policymakers and industry executives spoke to us about president trump's pressure on the auto industry. the u.s. commerce department has began hearings on whether auto imports pose a national security

threat. industry groups and companies opposition.r our next guest has testified at those public hearings and he joins us from washington, linda dempsey, vice president of economic affairs for the national manufacturers association. thank you for joining us. i am just wondering, throughout your testimony, you've been having these conversations with stakeholders. that a optimistic sensible, market friendly resolution will be found? linda: that is certainly what we are pushing for. theof the things we saw at hearing today was a widespread agreement across most of the witnesses, and certainly all the industry witnesses who were testifying today about a few things. the manufacturing sector, the automotive run for shrink sector in the united states has been growing and expanding, but also, the broad-based tariffs, import restrictions will stump that growth. do we want fair trade. ? we agree on that. the question is how to get there.

there were not a lot of voices for tariffs today. we have a lot of ideas on agreements for trade tools but not broad-based tariffs. haidi: you have talked about what you see as the fact that china's behavior over the past decade or so has been predatory or unfair in terms of its trading practices. you have called it cheating, essentially. but, what is the way forward? what is a part of a more coherent trading strategy from the trump administration? linda: the u.s.-china commercial relationship is hugely complicated. they are our third-largest export partner in the world, after canada and mexico, but they all also part of a lot of distortions of the economy, intellectual property theft, trade cheating. they joined the wto lack 2001 based on rules written largely a ago.er of a century

we need stronger new work bulls, and the very much wanted the administration and the chinese government to get to the negotiating table. our government has certainly gotten the china government's attention. president trump and president xi jinping have spoken a couple of times. that us get an innovative, new, bilateral trading agreement and restructure our commercial relationship. but if we are just in a tit-for-tat tariff battle, nobody wins. certainly, manufacturers in the united states, we ask for about half of our production -- we losers.the our growth will be stunted, high wage jobs in the united states will be under serious challenge. haidi: linda, i want to throw up this week chart on u.s. auto imports, a look at the imports these tariffs are implemented.

environment,of where the globalized world of interconnected supply chains, is it possible to say that you will get benefits from american automakers if you analyze foreign imports? linda: i did not hear one voice today from the auto industry asking for tariffs. and, there hasn't been one. automakers produce here, and around the world. the import parts, they make parts year. trade has generally been -- make parts here. trade has generally been very positive, it is a growing sector part but those auto tariffs, if they were implemented, they would not just affect auto manufacturers, they would affect tractor manufacturers, construction, mining industries, it would start growth at a time when we want to see better

growth. ramy: i understand you have a proposal for bilateral trade agreement the two in the u.s. and china. tell me more about this? linda: i think some people think it is rather bold, but at the in the day from our perspective, this is the solution to the challenges we have in that relationship. whichaid, the rules in the u.s. and china operate were written largely about 25 years ago. there have been some updates, certainly when china joined the wto, the digital economy did not exist. 2001. just beginning in we don't have rules dealing with technology transfer, the way we do in other agreements. we have developed stronger roles in u.s. trade agreements and on intellectual property rights and their protection. but we also have to be innovative. china has a different structure in their economy. state owned enterprises play a bigger role and we need to make sure they are playing a truly commercial role, not tilting the

playing field against manufacturers in the united states. all of that should be part of the agreement. we think it can be done in parts, we could tackle some of the issues went away, move forward, develop some strengths, then there is value to both sides. ramy: doing that kind of agreement linda, very quickly here, there has been legislation, people in congress who think that they want to tie mr. trump's hands in terms of tariffs. would you like to see that happen? linda: in the u.s. system, our thetitution gives congress regulation over international trade, but of course, you need a chief executive to negotiate with foreign countries. there has always been this shared power akin fourth. wet i would say is, w just updated our trade code after 30 years, but we haven't really updated our trade rules. the last time we did that was

1988. i think there are a lot of trade laws that could use an update, use a refresh. i think there are ways for congress and the administration, the private sector as well, to work together, to modernize tools for the economy we live in today. ramy: fair point. linda dempsey, vice president for international economic affairs for the national association of manufacturers. thank you for joining us. . you can get a roundup for the stories you need to know to get your day going on this edition daybreak.rg you can go to a dayb on your bloomberg terminals if subscriber.omberg you can also customize your settings so you only get the news on the industries and the assets that you care about. this is bloomberg. ♪ that you care about. this is bloomberg. ♪

♪ ramy: i am really inocencio in new york. haidi: and this is haidi in

sydney, you're watching "daybreak: australia." pollution, to tackle and one solution may lie in the nation's own backyard, deep within the world's largest shale reserves. as they am back on their ambitious 2025 modernization program, we take a look at how their new technology will drive china toward its own u.s. style shale boom. >> china needs natural gas. propelled by president xi jinping's pledge to reduce pollution, natural gas use skyrocketed. it is now the world's largest natural gas importer. the good news is have. they have the most shale gas in the world. >> that is probably the biggest challenge, in texas, he have a low-lying plains but in the province in china, it is all mountains. so effectively, you have to put

wells on top and bring all the equipment, logistics, trucks and everything, to the top of this month where you can start. >> drilling china's reserves dwarf the u.s.. year, they produced or almost as reduced in the u.s.. >> in the u.s., they have a lot of floodplains, but you cannot do the same in china -- flat planes. >> china currently provides a subsidy that encourages major producers. but there is uncertainty whether the policy will continue. >> in terms of the government's role, it is pretty back seat. they don't really seem to be doing such a great deal. they more seem to be saying, it is time to walk on your own two feet. inand shale jaylen takes off china, it will be because of

lessons learned here in the southwest part of the country. the largest shale gas played outside of north america. >> it is very important in terms of it is like a laboratory. china has learned how to improve their shale gas production. it is crucial. >> china's energy giants are poor and money into this area. it is said that it will reach hundreds of billions of jan in 2020. >> we will try to expand output in a study where. our goal is to achieve. capacity of more than 10 billion by 2020 and produce more clean energy by 2020. >> it is showing progress by investing in drilling technology. drilling costs have dropped 40% from 2010 levels. but there is far to go before they can claim success. >> drilling is not going to

carry the aspirations the chinese shale industry, we need to find more. we need to see evidence that china can find and develop more of these industries. ramy: great story out of china's southwest. let us get a quick check of the latest business flash headlines. footwear company skechers got stumped. after a miss on same-store sales expectations it's. third-quarter forecast was almost 4% below estimates. concerns over its international growth strategy also weighing on sentiment. last year was a wild ride for investors, shares surged to 41% in october off the back of good results for plunging as you can see, in april. ramy: the boulevard on u.s. equities maybe -- haidi: the bull run on u.s. equities may be over. j.p. morgan says that they

probably will not be as impressive as in the past. j.p. morgan also advises its clients to return to the em space despite the first half of the year. ramy: the softbank ceo masayoshi son has dismissed japan as "stupid" for not allowing ridesharing. he is teaming up with another company to launch a taxi hailing platform, saying that japan's transport infrastructure cannot handle the expected amount of for next year's world cup and of course, the olympics in 2020. >> in japan, ride-hailing is prohibited by law. i cannot believe a country as stupid as that still exist. it is incredible to our national government is denying and inevitable future -- denying this inevitable future. ramy: that is it for us on "daybreak: australia."

we will be back on daybreak asia with more. this is bloomberg. ♪ two, down and back up.

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haidi: welcome to daybreak asia. stocks are set to slide. the dollar reeling as president trump attacks the fed. the u.n. remains at a 12 month low as investors weigh china's monetary policy in the face of a slowing growth. and i am in new york where it is just past seven p.m. on thursday. the auto industry fights back. jobs atld put american risk. the semiconductor trims