>> amazon eases some of the gloom with better expected earnings and forecast of more of the same, shares rising in late trade. bath, they still took a $120 billion has been wiped away. >> elsewhere, the u.s. and china washingtond threatens sanctions on a nato ally. >> and the ecb is sticking to its bond by and rape has strategy. mario draghi sees broad-based

eurozone growth ahead. 8:00 a.m. inthat sydney. two hours away from the open here. ramy: and it's just past 6:00 p.m. here in new york. over the next hour we will look at how the action on wall street will play into your asia-pacific trading day. let's get straight to it, because it was definitely the tech story continuing along with earnings, after-hours about amazon as well as intel. rightn see those trading now. amazon is up by little more than 3% after the quarter profit beat estimates. but intel, even notes top and bottom lines of the, that is ahead is for a slowdown. let's take a look at what happened on the averages here. the dow up .4%, but it wasn't messy picture, all over the place here. , with no00 down .3%

surprise, information technology being the biggest sector weighting that down. down, as youourse can see at the bottom of your screen, 19%. wiping away $120 billion in just this one trading session. also the biggest one-day deterioration in individual well as well. not a great way to make history there. take a look at the set up here in asia, tech blows aside, we're looking at a mixed picture, trading in using an is underway with a little bit of negativity there. -- kiwi and the aussie dollar the biggest losers against the dollar index overnight. the biggest advance in about two weeks. sessioning the sydney of about .7%.

profit for 2018 up to 500 million aussie dollar's including the first half potential remediation underway. heading over to the rest of the market picture, gold down by .25%. crude has been pushing higher in the york session. reports of attacks on saudi tankers reviving concerns over the the supply-side at the story. brent crude trading just shy of 74.54. the bloomberg commodities index pretty flat. let's get back to the top story, with amazon reporting better than expected results in the second quarter, let's get to san francisco. emily chang has the details. going to the headlines, what is the biggest story? emily: interestingly, amazon missed on revenue.

earnings,massively on and that's what investors are so excited about. amazon seems to be proving that by increasing operational efficiency across all of its platforms that it can squeeze even more profit out of all of these businesses. were seeing prime ever ships continue to go up, whole foods .ring in more prime members on the conference call, the cfo talked about how whole foods in particular has been very attractive for prime members, and that on prime day, member we had that huge technical glitch. brought in more prime embers than ever. amazon is firing across all cylinders, and a cloud is a huge advertisingll as growth. we talked a lot about how amazon is looking very promising from an online ad perspective and it could rival facebook and google in the future and perhaps even surpassed facebook at some point. it may take 3-5 years, but they

certainly have a lot of potential to expand that business. ramy: when you talk about the cloud, that's one of the biggest drivers for revenue growth there. what else have you learned in terms of detail for amazon web services? emily: we heard microsoft and google report released wrong cloud revenue and amazon. the pie is getting bigger and bigger, but amazon is in the lead. bloomberg also reporting that the pentagon is close to coming up with this winner take all cloud contract that really does favor amazon as a market leader. cloud revenue contributed 11.5% to overall revenue. listen to what the amazon cfo ind on the call about aws particular. >> we had what i to be did to continued strength in some of our most profitable areas. aws had a third consecutive quarter of accelerated growth.

advertising also had strong growth. probably better than expected deficiencies in operations. emily: what is interesting is the cloud business and amazon advertising business are more profitable than its e-commerce isn't, it's bread-and-butter. so those businesses have a tremendous amount of potential going forward. ramy: we still have to talk about facebook, the biggest market route on public company in the u.s. in history. ,eople everywhere were joking but what does the future look like for the social network? emily: talked about this aftermarket yesterday and the huge plunge and facebook shares holding. as we discussed, facebook shares just don't move like this. there's a lot of pessimism about a lot of factors working against facebook. number one, they talked about

gdp are, we're seeing decreased user engagement, especially in europe. the cfo talked about how users ask are going in there and changing their privacy settings. what is difficult to understand is how much this has to do with users distressed and facebook, and whether or not facebook is hitting a plateau in users overall. facebookith an early investor who's been very outspoken about facebook and these privacy issues. he thinks the main headline is that facebook is saturating in its most profitable market, and that's the united states and europe. we saw mark zuckerberg trying to paint a very rosy picture, to talk up instagram and the family of facebook apps, but in some sense, instagram has a lot of the same problems facebook has. facebook certain has a lot to , but in the coming quarter

the cfo on the call was not optimistic about revenue growth going forward either. so there is a lot to be watching for. ramy: and if your own people are not optimistic about it, it doesn't exactly bode well. emily chang, thanks as always. more after the bell earnings and were seeing intel as well as starbucks on the move. intel.an, let's for with what are the details? su: a bullish forecast, let's go to the numbers right now. what you see is a company that came out with very strong data center business reports. 27% because of concern about the growth. look at the full-year forecast, it's about $18.1 billion is what they see for the current quarter. they've increased the target to a record $69.5 billion.

shares slipped after hours but you can see they are up your today, close to 12%. again, this is the first time they've had an earnings report after the report from the ceo removed in june due to a next her marital affair. so strong footing in terms of what their strength is across all different platforms. let's go to starbucks now, after hours we saw the stock searching for direction. at one point it was up, then down. right now it is unchanged. toughcks is saying it's a first half, they're taking steps to correct what was a difficult first half of the year. isionwide delivery in china one thing their promising by the end of the year to address softer sales there. they really feel they can change things with an ad campaign going forward. haidi: terms of the regular session, traders are bracing themselves.

what are the highlights? of there are other aspects the s&p that are supporting the market. let's go right into the snapshot. the idiots 100, the heavy nasdaq index, that was downbeat. let's look at one of the big standouts in terms of a move higher. that was young china. movers and you can see the size of the move. at up point -- at one point it was up 28%. the biggest move since the ipo in 2016. drugrns about an alzheimer . and amd upad news, with the strong earnings forecast. difficult0 faces

cuts, 21 percent year-over-year is the increase now, but next year, less than 10% increase is expected. that could skew the results going forward. a lot of analysts are starting to warm. -- starting to warn. >> the u.s. and china clashed at the world trade organization with washington demanding reforms to make the chinese economy or responsive to market forces. one investor accused the u.s. of extortion and distortion and said beijing would not respond to heavy-handed tactics. on u.s. is preparing duties $200 billion of chinese goods. president trump has threatened tariffs on $500 billion. house of representatives has voted to reviews of foreign investment in sensitive u.s. industries and to maintain president trump still to revive .hinese telecom company zte

the measure passed in a defense bill that now goes to the senate. it seen as making chinese investment in u.s. tech more difficult and time-consuming within increased risk of being blocked. and achieve brexit negotiator part of the trade proposal, dealing major blow to hopes of reaching an agreement by october. prime minister theresa may offered a model whereby britain would collect tariffs on goods entering the country. >> you cannot and you will not denigrate the discussion for rules and b.a.t. collection to a nonmember. it would not be subject to the u.s. government structures. a serious health care, he

said he's unable to put his full energy and attention into the role after surgery within the last month and ongoing treatment. director john monahan has been a new chairman of the world's biggest dairy exporter. 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. this is bloomberg. we're just getting some of these lines through as we hear from the international monetary fund, james daniels begin in washington about her number things, including the structural problems facing the chinese economy, saying the size of the economy in china may suppress the u.s. in 2030, but specifically to do with the yuan, say nantz moved relatively quickly compared to the u.s. dollar in recent weeks, but not so by the standards of other emerging markets. ramy: there has been criticism

about chinese growth still being too fast. the imf is now praising china's shift to high-quality growth from high-speed growth. mixed messaging here, but overall pushing ahead saying that china is doing fairly well. ahead move ahead, still amazon's better than expected results. will there be more of the same in the coming quarter? achieve investment officer tells us what is driving growth. haidi: and the ecb stays on course for tightening. will get some analysis from constant hunter who is with us. this is bloomberg. ♪

ramy: i'm in new york. haidi: and i'm in sydney. you're watching "bloomberg daybreak: australia." european central bank stuck to its plan and its messaging to in bond purchases as the e.u. steps

back from the brink of a trade war. kathleen hays is here with the details. said there's quite a be in the eurozone. kathleen: the three biggest central banks in the world we and the ecb's starting it out next week. they still see rate hikes off in the distance, and a little more andat on euro area growth more upbeat on inflation. his what he said earlier today. >> pressures are strengthening and broadening amid high levels of capacity utilization and tightening labor markets. quick specifically in spite of the mixed nature of the data recently, mario draghi sees that stroke -- showing the economy stabilizing, back in june he saw signs of weakness. the bottom line is now they are expected to end their bond purchases in the audit and by the in of summer or fall next year, start hiking rates.

you can see this in our bloomberg library, showing you morgan stanley's estimated months to hiking the key rate in the eurozone. 15 months would take you to september of next year. as for trade, the ecb acknowledges there's a threat mariorotectionism, but draghi said he sees a rep hope in the meeting with president trump and jean-claude juncker yesterday. meeting,k note of this and one can say something kind of general is a good sign. it's a good sign because it there is a willingness to discuss trade issues in a multilateral framework again. kathleen: so we've got the ecb under about, and next week the bank of japan meets. although bank of japan, investors are keenly awaiting, a

lot of excitement and anticipation building around that deal. haidi: there has been a lot of speculation into movement of the bond market globally ahead of that, looking forward to that. kathleen hays there. just before we get more analysis on central-bank action, were getting these breaking lines over bloomberg from the hp, entering a pack to sell assets for $10.8 billion. -- the entire , were just getting a few more details there as they come through. certainly as part of a broader theme and we had the sale of the u.s. on sore -- i'm sure's shale assets. -- onshore shale assets. certainly one to watch in that energy space today.

in the meantime, let's get back to central banks, the ecb with mario draghi pretty much staying on message, overnight, were looking ahead to the boj. constances bring in hunter, good to have you back here. talk about the ecb, it was no secret, we knew this was going to happen. constance: i think kathleen highlighted that mario draghi pointed out that growth was a little bit stronger. in addition to the clip we just about are you talked stronger capacity utilization, one of the other things he said was that lending was continuing to grow and lending demand is continuing to grow in the actual lending by banks was continuing to grow. that is a good sign. i think the devil is in the nuance, the devil is in the details. the way the fed when about normalizing rates is that they started to raise rates and then they began to taper their balance sheet. so the ecb is doing it a little

bit differently. they are tapering first and then they are going to start raising rates. one of the things that happened that we've seen in the bond u.s., is that in the there many economic forecasters that are not looking for term premium to return. if you talk to the fed, many fed officials mention the return of term premium, so that would be higher rates at the longer end of the curve. this is an important thing for financing, it's important if you believe the signal from the inverted yield -- yield curve. i think european central bank would like to prevent that yield curve in version because of the way european insurance companies and banks have their investments may within other european country sovereign debt. ramy: does that mean it's a better way, and shouldn't the fed be doing that?

constance: this is all uncharted territory. we've never had central bank balance sheets disclose. pox -- abruptly $60 trillion when we add it all up. ramy: let's talk about the biggest risk to the ecb. it seems like on the u.s. side, strong economic growth, were seeing growth in china, depending on what you look at, things seem to be pretty good in most major places. i would say the biggest risk for the global economy in general and the ecb in particular is just that there has been a huge amount of debt that has been amassed around the world since the global financial crisis. low interest rates have spurred a real expansion of debt. so when we look in europe in particular, i would say the most vulnerable country is italy. there is political nervousness about italy, their

bond spreads widen out and the refinancing costs go up. that's not something italy needs right now. so keeping italy on a firm, study trajectory is really important. the week has been pretty quiet on the data front with second-quarter gdp estimates. i want to throw up this quick generally isg driven by consumer spending in the second quarter. a massive tax overhaul would have had a lot to do with that. that's the biggest gang annualized since the third quarter of 2014, according to our numbers. barrel,ook down the potentially a trade war still being unresolved the china and all the short-term inflationary longer-term disinflationary that it represents. constance: i don't know if we can say the consumption is result of the tax cuts. the new york fed did a survey in they were going

to increase spending. the estimates for income increases were fairly low. more importantly, regardless of whether or not people estimated an increase in income or steady income, they said they were not going to change their spending. and of course milton friedman would have predicted this outcome because what we've seen up in budget deficit go the level of debt forecast to increase at a faster pace. so people are thinking about that and saying isn't it just going to come back and bite me down the road when i have to pay off this debt? i think the reason we've seen consumption go up is in part because we've had jobs growth, growing at about 1.6%, and wages are finally starting to pick up. real wages are growing just a bit above 2.5%. when you at all that together, it supports a robust consumption picture of nearly 3%. a final word on the

dollar, has it been surprising to you that it's been a one-way bet and most people expect that strength to continue? it's also rising from the trade war scenario that was largely created in the u.s.. disagree, i would not think there is scope for the dollar to continue appreciating, given the current situation. the fed is continuing to raise rates. if wages continued to go up, that should translate into more demand for inflation which would mean the fed will keep on track to continue raising rates more so than other countries around the world, which translates into a stronger dollar. constance hunter joining us there. 91%er is net income tumbled to $47 million with a brokerage losing $70 million outside of japan.

that's less than two years after returning to international profit. revenue fell across the board, fixed income to equities and investment banking, business at home also suffered from trade war jitters, shares down 16% this year. we cannot say yet how the u.s.-china trade war will turn out. however, the renegotiation of nafta and the auto tariffs main central themes and they will cause significant turbulence in the markets in the months to come. to theissan is adding global gloom over tariffs and the auto industry. first quarter operating profit plunged 29%, about 1.5% below the average estimate. nissan says worst maybe to come. the rise of raise imported cars by $6,000. >> the impact on the price of

raw materials including steel and aluminum from the terror of was limited in the first quarter . the price may rise further in the second quarter as the market has been in the rising trend. surging fuel prices trimmed earnings that southeast asia's biggest carrier and its budget units. net income was $103 million, well below the $157 million average foreseen by analysts. they been revamping cabins and added new claims to compete at both the premium and budget ends. passenger yields dropped by 1%. we are heading into the market open here in asia. the final trading day of the week and speculation on china and japan central banks, policy stances and decisions, just a couple of days away from the boj decision and the bond markets

have been moving accordingly. will look at the forces moving the markets in the friday session. this is bloomberg. ♪

haidi: it's a: 30 a.m. in sydney where our open in about 90 minutes time. futures up about 17%. it's a beautiful morning, about 10 degrees here in sydney. ramy: in new york it 6:30 p.m., and you're watching "bloomberg daybreak: australia." to the first word news. >> the international monetary fund says the near-term outlook for china's robust, but external threats arising an overall risks are tilted to the downside. report said much will depend on how the government reacts. stableould be sustained growth, but a reversion to credit driven stimulus would further increase vulnerability

and could trigger an abrupt adjustment. facebook plunged 19% on thursday after months of scandal finally hit growth. shares have previously seemed immune to fierce criticism of the company's content policies and powder to protect privacy and is changing at rules. after facebook's admit sales numbers in the second quarter, the stock tanked and wiped away more than $123 in market value. aramco is said to be considering tapping the international bond market for the first time. the finance move for the petrochemical giant. were told such a move into global capital would offer an alternative to the delayed ipo pretty if it goes ahead, it would force the world's largest oil producer to disclose its accounts to investors for the first time. the former cricket superstar is declaring victory and promising time after allegations of

fraud. final results are expected on willy is not clear if khan have an outright majority. and let saying investors want a new government to assume power quickly and tackled the economy. 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. this is bloomberg. so much for you that. you quick update on the markets. trading is underway in new zealand's. , newtle bit of downside zealand consumer confidence falling to the lowest since august 2016. some weakness brought for the aussie in kiwi dollars there, the two biggest losers against the bloomberg dollar index. sydney futures looking positive going into that open. looking elsewhere, dollar-yen .rading at 1.11

theresa may was sent back to the drawing board on her customs agreement, rejected by the e.u. there. went -- steady session when it comes to the u.s. treasury market. we had that lunch with facebook driving cap and s&p also lower by .3% in the u.s. session. us. is with bond yieldshad rising and a synchronize reaction as well. what's going on as we look ahead to the boj meeting? the fact that we've had such a sleepy japanese bond market for so many months, the fact that the magnitude of the move this week, albeit at low levels, has taken some people off guard and from the meeting to be massively in play for the bank of japan next week.

whether they about tweaked policy around the edges or do something more significant to pave the way for a future tweak and policy. a lot of the yield control policy in japan has been detrimental to the outlook for the profits of ranks in the country. that is starting to become a bit of a political issue there as well. as you can see on the chart, the extent of the run up we've seen this year in the 10 year yield, this week, i beg your pardon, has been really pronounced and we been used to just know moves in this market whatsoever. so it really sets up the bank of japan meeting to be right at the forefront of what investors will be focusing on. will look when bond start trading in japan, we will look at whether other indications of policies tweaking, at the moment, investors are balance in both camps as to whether we get signs of boj tweaks in policy.

first in a few years, if anything happens there. authorities in china loosening policy there. thanks have been one big beneficiary of this. one change in people's assessment of the outlook for those banks? i guess the bottom line is, has this really got legs? adam: context here is a series of signals we've had over the last couple of weeks about policy easing from chinese authorities for the economy there, which obviously is under pressure from the trade side of things but also under pressure for multitude of domestic reasons that we've been discussing on the show for many months now. ,s you can see in this chart it's having a big effect on some areas of the equity market, like banks which is just been massively sold off. they are trading at huge valuation discounts and that's leaving opportunity for some

people to come in and start to buy some of these names. banks have had a great rally over the last week or so, albeit off pretty depressed valuations. when you get to these price-to-book valuation discounts, it's pretty clear is going to be plenty of bulls wanted to get back in and buy some of this. check ourt forget to library for some of the chart you saw there on the bloomberg terminal. let's switch to washington, d.c. now, because the white house is threatening to impose sanctions on turkey over an american pastor held on terror and espionage charges. the vice president spoke about him. >> in turkey does not take immediate action to free this innocent man of faith and send him home to america, the united states will impose significant pastorns on turkey until

andrew brunson is free. ramy: president trump later reiterated that threat in a tweet. joe, the u.s.-turkey tension has been building for a while. tell us more about this pastor who seems to be the center of this. joe: this has been issue that's been bubbling under the surface for a while. the u.s. pastor has been taken into custody, most recently released to house arrest. the u.s. and turkey have been negotiating on this and that is what brought him out to house arrest rather than full on detention. apparently turkey has upped the ante in terms of what sort of deal they want. they want clearance for turkish investigationnder in the u.s. over violating sanctions against iran, and that apparently was the breaking point for the u.s.

in addition there's been pressure among evangelicals in and supporters of the trump administration to get some further action to get him released. ramy: in terms of what the white house is trying to do, what kind of punishment are they talking about? they haven't set out specific sanctions yet. senate, therend have been moves to pass some legislation that would try to cut turkey off from international lending from the world bank and the imf by using u.s. leverage on those institutions. that maybe one set. i think we can probably expect to see that if there is no more movement, we will hear something from the treasury department about additional sanctions that could be imposed unilaterally by the administration. haidi: there has been some

relief this week in the transatlantic trade war, but the clash were seeing at the wto seems to suggest there's not much room for breakthrough negotiations with china. is there any sense of seeing that the trump administration is given away in a ground? joe: based on the exchange today in washington, i would say at this point no. the spokesman for the wto described exchange between u.s. ambassador and representative of the u.s. trade office as dramatic. one of the key things there was china saying the chinese ambassador saying, trying to hold their feet to the fire is not going to work. it may be that the tactic that works for the president with the e.u. in terms of threatening additional tariffs and escalation of the trade war, china at this point is holding firm that they are not going to submit to that. there are no further negotiations going on in the

background, at least that either side has let us know. we still seem to be at a stalemate. haidi: thank you so much for that, joe, they're in washington. aming up next, alexa, show your earnings. amazon reported after the close. we will go through the numbers in detail. this is bloomberg. ♪

ramy: welcome back. watchingu're "bloomberg daybreak: australia." intel tumbled in late trade despite beating estimates for the second quarter and raising its full-year outlook. giants such as google and amazon continuing to upgrade their networks built on intel products. reporter joins us

from san francisco. why are investors not impressed? whatey're looking beyond intel said today. as you pointed out, the numeral -- the numbers were fantastic, better than expected. the forecast was above expectations. what they're really focused on is intel's future, which is tied in with how good it is that manufacturing, again, intel talk about delays and how it's next year -- next you round of manufacturing will be delayed until well into next year. ramy: these are the first results were seeing after the ceo left. to what degree do you think there might be a leadership vacuum issue at the helm of the company? whenwhat happened was brian was basically tossed out of the company, that kind of lifted the lid on underlying concerns that investors and analysts had about intel, the potential for competition to

come into the market. they said in the absence of the leader and the leadership vacuum, perhaps that makes intel more vulnerable. today they didn't really do anything to dispel that. ramy: it seems a slowdown is still ahead there. is there any silver lining to that? ian: absolutely, intel is doing well, the market will grow for the first time since 2011, predicted that the data center business that drives profit is still going to grow and a peripheral businesses are also doing well as well. really it's a degree of hell well intel is doing rather than any concern that is going to fall off the edge of the world. ramy: down 5% in after-hours trading. ian king in san francisco there. let's do a quick check of other earnings in the latest business flash headlines. paypal fell after saying it expects to miss avenue forecast and warning that growth of venmo

will continue slowing. compared with analyst expectations of 3.7 billion. paypal beat revenue estimates last quarter and authorized a stock buyback worth $10 million. >> we felt that we had a very good quarter and gave good guidance for the year. we had reported 23% revenue eps growth.8% to your point, we also announced a $10 billion share buyback. increased guidance by 100 new dollars in increased our guidance by one cent, showing momentum in business. haidi: spotify boost its customer base in the second quarter, beating analyst estimates thanks to growth in latin america and emerging markets. paid subscribers reached 83 wheeled, -- 83 million, more than any other music service. the business is performing to the higher end of expectations.

shares recovered from a premarket slump, pushing the market cap to $35 billion. ramy: amazon reported better than expected earnings in the second quarter and forecast were of the same in the current period. it sees operating income of up to $2.4 billion, igniting investor optimism about cloud computing and other businesses. amazon said it's happy with growth and its main retail operation, driven by its prime service. >> were pleased with the retail growth, it's driven by the prime program and the engagement of prime customers as well as increased selection and third-party selection. on amazon.s get more a buy rating on the stock. ivan, it feels like if you're

not facebook, you might be doing quite a bit better. for amazon, deuce the any kind of downside on the horizon? ivan: not really, everything is doing well. their plans are working, they are increasing their prime membership and giving more value to the prime members, which is growing membership. prime members are their best customers. for continue to use amazon more and more services and more and more purchases. also the cloud business their newto grow, and advertising business is also very high-margin and is growing very well. overall, the company is doing well and they have a lot more runway ahead of them. revenuellin, did disappoint? it was based on what the company itself had predicted but shy of what wall street had been expecting or hoping for. ivan: you cannot really

manufacture revenue. but the surprise on the earnings hundred so significant that it shows their ability to create net income and eventually create significant return on capital which will also draw the stock rise higher. haidi: given the diverting fortunes of facebook and alphabetic amazon looking ahead to the chipmakers and intel as well, is there a sense that we facebook facing its own existential crisis, so to speak? really, everything that facebook discussed on their conference call, they have been talking about for a long time. they've been talking about slowing growth for a number of quarters. of quarterow 50% consistently. they said growth would eventually slow. over the past few months they've been talking about significant investments they are making to increase security and surveillance. reduceid that would

profitability in the near term. even mark zuckerberg spoke about the fact that people should spend less time on facebook. it's about quality time and not really length of time. so it's not disappointing really that their user engagement dropped a little bit. they have been saying these things for quite some time. i think the stock sold off because it had a good run. early april 2ut $217 on monday and just gave some of that back that it gained over the past few months. they have a lot of growth drivers ahead of them, including instagram, which could become as big as facebook itself as far as user base. they are monetizing instagram with the ability to embed ads. they will be monetizing messenger and also offer other services within messenger such as payments and even voice communication. they have a lot of growth ahead of them.

the stock may have gotten a little ahead of itself, but i think the selloff is a tremendous buying opportunity. ramy: in your coverage you have as of april. do you want to update that? ivan: i would update that. ramy: you were talking about the other drivers. we realize that core facebook is not growing as much, but instagram is growing, but can it really circumvent what's happening in terms of the downside? a lot of critics have been saying no. ivan: i think it can. instagram is a mobile-based application, and that's where the growth is. people are more engaged on mobile. first of all, younger people use instagram and more facebook users are transitioning to instagram and using it on the go. i think that will be a big

growth driver. platformss of other like messenger, what is the potential? it is still in its infancy in terms of revenue. virtualey have oculus, reality and augmented reality. ramy: but this is still further down the line. want to buy stocks today for something that will happen in the future. people are using oculus. it's about sharing virtual 3-d experiences, which is what facebook is all about, connecting people and sharing experiences, and then making money by engaging those people and engaging advertisers to the customer base that is most interested in their products. and digital ads continue to grow. more companies are spending more money on digital-based advertising because it provides the advertiser with the highest rate of return. you connect with users or

potential customers who are most interested in your products. haidi: at the end of the day, facebook still basically holds the holy grail of user data that companies and businesses want to get access to. do you see those successfully being able to navigate the regulatory and political headlines to still make that a lucrative play on business? ivan: absolutely. advertisers want to go to where the people are, and the people are on facebook. the stricter european data loss of the larger companies like facebook because members feel more secure with a larger company, especially one that is committed to security and compliance the way facebook is right now. so i think that benefits them. ramy: there are still international growth concerns with privacy. they have not even tapped china. there are still these concerns. ivan: there's restrictions to

access in china. it's really not concerns over privacy, it's concern over access to information. eventually that will change and china will be a huge market for them. ramy: if our when they open up. ivan: one day they will. ramy: we would leave it there. we will talk more about amazon's and be joined by an international retail consultant who helped establish macy's merchandise strategy and supply chain in china. that interview coming up in under an hour. and you can turn to your bloomberg for more on amazon. good commentary and analysis from bloomberg's expert editors. this is bloomberg. ♪

haidi: that's about it for "bloomberg daybreak: australia." up next is daybreak asia.

take a look at what's coming up over the next two hours. happy friday to you. >> we been talking about loss of earnings and trade tensions. japan casino the deal as well because that passed the implementation bill just a couple of days ago. next guests are pretty excited about that. our guest has been lobbying in japan for an integrated resort for 12 years now. will get his take on what he thinks in terms of the prospects and potential of it. they are only allowing three licenses up for grabs so there's fierce competition. what type of partnership will he be looking at, and will there be slots at these casinos?

, will speak with a ceo and founder and ask him about the current credit environment in the country, especially with the recent decision to loosen monetary conditions in china. also what might have ramifications in terms of u.s.-china trade war. growth is still actually too fast. haidi: and how does it impact policy and investment strategy? we'll get some thoughts from the ubs wealth management ceo. talking about the implications of the trade war come as we heard from the debit to go, it doesn't seem like there will be much of a circuit breaker between beijing and washington despite the brief were stained respite that we had -- brief or restrained respite we had this

week. will see if there's any winners out of these trade tensions. daybreak asia is next. this is bloomberg. ♪

yvonne: 7 a.m. here in hong kong. i'm yvonne man and welcome to "daybreak: asia" amazon asia's some of the -- amazon eases some of the faang. facebook took a eating. month of scandal. one of $20 billion wiped away. ramy: from bloomberg's global headquarters, i'm ramy inocencio. the u.s. and china clash at the wto and washington threatens sanctions on nato ally