ar. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. ♪ haidi: u.s. stocks mixed amid worsening trade tensions. apples optimistic forecast. ramy: tesla is a winner after hours. it is burning through less cash and elon musk intends to focus on the model three. haidi: the trump administration confirms it is weighing tariffs on chinese goods. londonio tinto slumps in despite a good first half and a cash windfall for investors.

we will ask what happened? haidi: hello from sydney. this is daybreak australia and we are two hours away from the open of asia's first major market. ramy: it is past 6:00 p.m. in new york. i am ramy inocencio. we will be looking at how the action on wall street will play into your asia-pacific trading day. i have to say today was confusion because based on reports from china as well as the united states doing tit-for-tat in terms of words, escalating what is happening in terms of global trade, it has been confusing and that brought investors to wonder where they should put their money. let's show you how stocks ended the day today. you can see confusion. the s&p close to the flatline. 2813. the nasdaq was up .5%. that is thanks to apple which

did see a pop of 6% very not yet but gettingrillion, close. $973 trillion is where they stand. traffic -- trey definitely weighed. haidi: we are expecting that to play out with most asian futures in this part of the session pointing lower. let's look at how we are setting up for the asian open. trading in new zealand getting underway. kiwi stocks are trading flat at the moment, exactly flat as you can see. also seeing downside as we get into the aussie open after a lower finish. in terms of currency, the kiwi and the aussie have been trading without much support given the theme of dollar strength. certainly these are the currencies to watch out for in terms of trade tensions. we had the high u.s. yield weighing on resource pricing

which is a key component when it comes to the aussie dollar and equities in the open. let's look elsewhere, because we are talking about commodities. we had commodities index falling overnight. we had concern when it comes to oil. a report suggests an uptick in inventories, investors mulling whether this supply-side will go in a negative way. gold futures continuing to fall. investors are pouring into interest yielding assets at the moment and even with these potentially worsening trade wars, we are not seeing demand back into gold. ramy: what we do see is demand into tesla after hours because the stock is rising in late trading after second-quarter earnings missed estimates but revenue beat expectations and the all-important cash burn slowed down. it plowed through $739 million,

but that is less than $900 million predicted. elon musk is setting new targets, saying the goal is to produce 6000 model three by the end of the week. emily chang has all of that and more in san francisco. what is your biggest take away? emily: it is really elon musk raising his own targets again, 6000 model threes a week by the end of this month. the company say they have produced 5000 model threes a different several weeks of the last quarter. this is a company that ran into a lot of production issues over the last three months. now we know they basically went overboard with robots in the factory, so they had to add a 10th and another production line which was run by humans. they are adding -- getting rid of the over robotics issues and the goal is to hit 6000 model threes a week by the end of this month.

elon musk, ambitious as always. they beat on revenue. the loss was bigger than expected but analysts had expected a fairly tough quarter. on the call we had no idea which we would be getting -- which elon musk we would be getting. we got the polite one and the apologized to the analysts he cut off on the last call. he said he did not get enough sleep and that is why he was so impolite. ramy: he did say he was living in production hell. he might be forgiven for a lack of sleep. we got to talk about tariffs because on one side this is an automobile story, but on the other there is a china story. was there material impact? emily: tesla talked about that. they said in their letter, while tariffs on vehicle imports have recently decreased to 15%, imports specifically from the u.s. have increased to 40% to we had to adjust pricing in china

to partially offset the increased cost. this will have negative impact on our volumes in china in the near term. as of now they don't have a huge business in china but they do aim to. it is the biggest car market in the world, so planning a big factory. all of this happening in the midst of rising trade tensions between the united states and china, and bloomberg has a report the trump administration is considering increasing tariffs on the $200 billion worth of chinese goods from 10% to 25% which is significant, but as of now even though tesla is seeing some impact, it is not huge because their business is not huge yet. haidi: difficult timing given they are planning this big shanghai factory. did we get any more details how they will pay for that? emily: we did get more details and they say the construction

will start in the next few quarters. this is something analysts are concerned about, investment. it is an investment they believe is very important to the long-term to reach that huge, potentially huge car market in china. tesla is saying they will produce roughly 250,000 vehicles a year at first but that will grow to 500,000 vehicles a year, so big numbers and if they can hit those numbers and meet that demand, it could be a huge opportunity for tesla. political uncertainty looms. ,aidi: all right, emily chang our bloomberg technology anchor with the latest on tesla. we are seeing a real spike up in after-hours trading. contrite elon musk is welcomed by investors. let's you to first word news. reporter: president trump is back to saying the best way to gain funding for the border wall is a government shutdown before

november midterms. he told rush limbaugh many republicans disagree he thinks raising the pressure before the election would force democrats to support the plan. senior republicans sat down with houston mcgrath. u.s. automakers pay the price of for pulling back on discounts for the first time in more than four years. almost all reported sales declined last month, led by a 15% plunge at nissan. this was a rough month. the big names in detroit lowered earnings guidance and 40 embarks on a five-year restructuring plan. they face the challenge of good deals on used vehicles. aogle is said to be preparing version of the search engine for china that will block results beijing deems sensitive. the program is called dragonfly and is one of several options they are pursuing for returning to china. baidu shares are raising in the earlier gain.

they had seen a premarket right of 2% after beating revenue and profit forecasts. the reserve bank of india raise rates to the highest in two years to tackle inflation and shore up the rupee should a local currency war erupt. it is the first back-to-back increased since the monetary policy committee came into being in september 2016. the governor hinted at more tightening at -- more tightening ahead. >> we have already had a few months of turbulence behind us, this is likelyke to continue for how long, i don't know. skirmishes evolved we areriff wars and now possibly at the beginning of currency wars. reporter: 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 jenna dagenhart. this is bloomberg. haidi: thank you. the trump administration has confirmed it is weighing 25% on the proposed tariffs of $200 billion of chinese goods from the previously planned 10%. let's get more from our congress editor. how much time is left to get talks restarted between the u.s. and china, and they said they are open to negotiations? joe: this is designed to put more pressure on china and restart negotiation's but there is no sign of that happening. they are talking about talking and china's reaction earlier in the day after the first reports from bloomberg about 25% tariffs was to say that china is prepared to retaliate in kind, and it will not be blackmailed or pressured into talks. the trump administration sees -- shows no signs of backing down

on its demands for china to open up its markets and give u.s. companies a fair shake on intellectual property. who or what would get hit with these new tariffs? joe: this would be the thing that would be felt more in china but also the u.s. because it would hit consumer products. before it was machinery, equipment. now i could affect television components, baseball gloves, seafood, handbags. this is a much broader -- the full escalation to cover pretty much all of u.s.-china trade, all the goods china ships to the u.s. the impact would be real in both countries. it would be felt directly by consumers in the u.s. reply,s for china's there has been words but no action. joe: there has been nothing

moving on the talks, no indication china is moving in terms of its conceding to some of trump's demands. the administration complains the valuation of china's currency and continued restrictions on some things like holding up shipments at ports continues. so there is still some time they could dial back. these tariffs when go into effect until september if they go through. there is time to back away from this on both sides, but right now as i said, they seem to be standing firm on their positions. ramy: bloomberg congress editor joe sobczyk. still ahead, more on tesla's second-quarter results and forecast. david garrity analyzes the company's prospects. haidi: up next no change for

now, but hikes are on the horizon. evan brown talked to us about the fed interest rate policy, what it means to the economy. this is bloomberg. ♪

ramy: welcome back. i am ramy inocencio in new york. haidi: you are watching daybreak australia. the federal reserve signaled it is ready to boost its key rate in september as it held unchanged wednesday. global economics and policy editor kathleen hays is here. what could change about the fed or their mind, about one or two hikes before this year is out? it seems like the september rate hike is more than ever a done deal. the only surprise would have been had they hikes because there is no cap -- no press conference following that.

we won't have to wait for any press conference is because there will be one at every meeting next year. this one more of a summer's news. important indicators in the policy statement because the fed has -- because it is a central bank, it upgraded its view of the economy. let's take a look at the first tendons of the five paragraph statement. information received since the committee met in june indicates the labor market has continued and the economic activity is rising at a strong rate. before it was described as solid, now it is strong. recent months, unemployment has been low, spending looking good. what could stop them? the yield curve has gotten flat. there are concerns about it in birding. one thing we could say, it is flat but look at the library and this chart that says a couple of things, turn it around in recent weeks. some steepening of the curve. it started with the bank of

japan and has moved to tweak yield curve. the fact they made that change with the 10 year jgb yield rise in larger range, even more so, treasury debt onslaught is coming. it is another reason why we see steepening. could concerns about emerging-market selloffs overseas stop the fed? listen to what the reserve bank of india said after the meeting where they raised their key rates again. he is raising a red flag. i will tell you what he said. the special sentence he told reporters. in fact he is talking here about haveact that currency wars come on the horizon. it has been a tough time, things uncertain and risk of a currency war you can see in the statement from the governor raising it. can anything stop the fed, i doubt it. i think there is things around the edges that will be important particularly as they get on to

the end of the year. our economics editor kathleen hays in tokyo with the latest out of the fed. let's deep dive and bring in evan brown, the ubs asset ourmanager, and used to work oe new york fed open market desk. good to see you. in terms of the question that you wish we were able to speak, if this were a live session, what would you want to know, because this is only five paragraph? >> certainly questions about the in -- the yield curve and inversion and if it will make them pause. i don't think the chairman would respond in that way and suggest a pause, but that is something the markets focus on. be curious to hear how he is thinking about it. also i would like to think about , i would like to see what they are thinking about trade risk. tariffs are interesting because not only are they hurtful for growth, but they boost

inflation. it is curious how the fed might respond. maybe inflation is rising, the fed might reserve -- respond hawkish lee. if it is all out trade war, you have concerns about tightening of financial conditions, global growth and the fed turning dovish. be curious how the chair is thinking about that. alix: haidi: inflation is key -- ramy: inflation is key right now. looking ahead, to what degree are you fearful there might be overshoot? evan: not over the next six months do we see a major breakout in inflation. on a year-over-year basis, the base effects are going to put downward pressure on annual core inflation readings. about not concerned breakout, but over the course of next year, we might see core inflation rise 2.1%, 2.3%. i don't think that will concern

the fed much. they told us they want to take a symmetrical approach. has gone to the downside so long, when overshoot it? i would say the labor market continues to tighten. eventually you get to a point where labor markets tighten that you have to rise and inflation starts to rise. we do have not gotten there yet, -- we have not gotten there yet but maybe it could be linear next year. haidi: one of the things that for the last few weeks they are saying, maybe too early to start talking about this internal impact, but you see that in the pmi ratings starting from asia, the u.s. and europe, seeing the to aown, factories grind halt. is that an indication you're seeing impact from tried tensions -- from trade tensions? is there a chance we see a

policy missteps? remy mentioned overshooting, with the uncertainty over what it could do to economic rose. evan: you raise a key point whether it is leading to changes in business decisions. we do here and see concern and surveys. businesses are citing rising input costs and concern about the direction where we are going, but we don't see that translating yet to businesses actually saying it is affecting investment outlook or hiring decisions. that is what we are looking at because to be frank, we don't know exactly how these tariffs are going to ripple through the economy and how much is this is are going to respond. there is concern and worry. where we would become more concerned as investors is if we saw it affecting the business decisions, and so we are waiting to see that in the surveys.

views ont me get your how this plays into the market. this is a chart that looks up the selloff. people have been talking about rotation and growth. you have the blue line looking at s&p versus tech, msci in white, world growth in yellow. you can see a rebound in all of those. is it a fundamental reset or are investors underpricing how big this selloff will be? evan: we have seen this plenty of times before where we have a growths of rotation from and value, then go back. that is the base case. outperformue stocks when the yield curve is steepening. it is a reasonably strong relationship. we have seen the yield curve strengthening over the last few days. we would question how sustainable that will be. as long as the fed continues to tighten -- we have seen the boj

added a little bit of flexibility to their control, but this is not a bank that is about to turn hawkish or hike the policy rate, nor is the ecb. those banks are putting downward pressure on long-term rates, and as long as that is happening, it is hard to see the yield curves deepening much and hard to see value really outperform growth for a long time here. haidi: we have to leave it there, but appreciate you coming with your insights. ubs asset management director of allocation. here is a roundup of stories you need to know. bloomberg subscribers can go to dayb on terminals. also available on the anywhere app. you can customize settings so you just get news on the industries and assets you care about. this is bloomberg. ♪ s is bloomberg. ♪

tesla.let's get more on shares soaring in late trade. abigail doolittle has been monitoring earnings. what stood out to this? abigail: this call is pretty extraordinary for an earnings report. these are the shares of tesla during the day. post market after they reported, popping 3% to 4%. they are on pace to produce 5000 model threes per day. profitability is close and the call started around 5:30. the ceo of the company adopting a very positive, upbeat tone, having his wall street friendly had. the stoxx started to take off. then when the call was opened to analysts, the first analyst taken from bernstein, who, on the last call elon musk called a burn head -- a bonehead, he

immediately apologized and said he was sleeping private and set the tone. he apologized to the next analyst from rbc, asking he accept his apology. it was tense for a moment but elon musk really taking on the conciliatory tone. morgan stanley's adam jonas saying he was liking the love analysts are feeling but a very upbeat call and the stock is up 8% in after-hours on the town -- on the tone elon musk have adopted and the profitability ahead. ramy: so interesting to see the turnaround here happening, especially from the first quarter earnings from when elon musk berated some of the analysts. more interesting things out of the function, they are not going to be doing any more fundraising for now. we will get more on that later on in this hour.

rio sparkles with a $7 billion windfall but profits were doled by the rising costs. this is bloomberg. ♪ s is bloomberg. ♪ two, down and back up.

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haidi: it is 8:30 a.m. in sydney. we are looking at posts asian equities starting the day in the red. getting a look at the sydney opera house. it is beautiful but we are looking at markets lower when it comes to the sydney session. off .4%. i am haidi stroud-watts. ramy: i am ramy inocencio in new york where it is 6:30 p.m. you are watching daybreak australia. haidi: let's get more on what we should be watching with trading. topsy-turvy session with recovering overnight, but trade tensions ever present. adam haigh is with us.

i want to talk about the fed nothing unexpected. does it have implications for how asia moves today? it does in the context of em assets and where you want to be, given the fact we have had a decent recovery in july off those lows and emerging asset management. what we did learn from the fed is they will remain pretty firmly on the pedal, looking likely for a september hike, december as well. in that sense, that scenario hasn't changed, but with treasuries back at the 3% yield for the 10 year, it does affect where you want to be in emerging markets relative to what your position is on the dollar. if you think it will keep rallying into this encouraging recovery in the u.s., it does affect allocations. i think for em in asia, it is the valuation question, given

where we are in the cycle and markets like china, which have made significant changes to policy over the last two or three weeks, swinging from one direction to the other. people are feeling enough policy support to give in some encouragement to risk assets incrementally if you want to take more risk in em assets. not get any huge moves. we have seen weakness in most currencies on the dollar. we will see more of the youth -- see more of that. the offshore yuan is unstable. ramy: a lot of the earnings have been jumpy on the day -- the day they release results. why is that? adam: it is interesting. goldman is raising the question without categorically providing an answer, but they may be suggesting it is difficult for analysts to price in trump tax cuts, the nature of this

recovery in the economy and inflationary impact. on the day equity moves during this u.s. earnings season have been significantly greater than the past eight quarters which is the time they analyzed. they found out 3.9% was on the ay move either up or down for company that has delivered on results. that compares to 3% normally on average over the last couple of years. it is significantly higher. as you see on this chart in your gtv library, 18% of companies beating. we are getting to the tail end of that feed. you are seeing announced moves. we had facebook last week, apple overnight and tesla. that is up 9% in after-hours trading. some of these outsized moves in equities providing some color in this earnings season which all in all is largely coming in line

with expectations with that kind of expectation that earnings continue to push on, and we see this great recovery next year. 82.5%, the highest since the early 1990's. editer adam haigh. a forget to check out our library for the church you saw. on your terminal. let's get to first word news. trump administration has confirmed it is debating whether to increase tariffs on $200 billion of chinese goods, raising pressure on beijing to change its jade -- trade practices. reporters said trump has asked the office to seek public comment on a rise of 20%. this could be imposed as early as next month. china is telling the u.s. to stop what it calls blackmail and pressure over trade.

the foreign ministry says it will fight back should president threato ahead with his to raise tariffs on more imports. the ministry repeated this should be resolved through talks. they said it should be based on equality of respect as well as established rules. the fed's decision to leave rates unchanged increases the betting for a hike in september. at amic activity is rising strong rate, and employment remains low. the repeated language from june about her their gradual rate increases consistent with a strong labor market and inflation nearing 2%. the lira plunged to a record low since the u.s. sanction to turkish ministers over the continued tension of a american pastor. turkey's justice and interior ministers have played leading roles in the arrest and detention of the pastor. president erdogan said turkey

will not bow to evangelist and zionist mentality in the u.s. 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 jenna dagenhart. this is bloomberg. back to you. haidi: concerns are mounting about chinese companies facing a wall of [indiscernible] one european fund giant says it is time to pile in. we have more. why does aberdeen think this is a good time to get in? reporter: they started adding to their holdings of chinese junk bonds in the second quarter. the selloff earlier this year saw years -- the highest in more than three years. that made the asset class quite attractive. what aberdeen believes is policy steps will be taken to address the tighter financial conditions

that have made investors uncomfortable about the companies' ability to revive credit. we have seen this in the past few weeks out of china. that is having investors comfort. -- dollar junk bonds which are mostly from chinese issuers returned the most in two years in july. ramy: which sectors is everyone finding -- is aberdeen finding attractive? andreea: they are keen on chinese developers which may account of the bulk of offshore bond issuance. property is a major contributor to the chinese economy. it makes about 30%. aberdeen believes it is china's exports that are at risk from the trade war. that is a natural reaction from the government, to support the property sector.

it is worth noting funding for developers are still below highs . they have come down in recent weeks. up in sydney,op the cross asset editor. now and rio tinto shares slipped in london despite the number two mining company foruncing a cash windfall investors. paul allen joins us. great things were expected from the first half, and it did not disappoint. what is happening? paul: rio tinto pretty much delivered $4.4 billion underlying earnings, $15 million less than expected. that is a rounding error really. $2.2 billion returned to shareholders. the dividend did surprise to the upside. $1.27 per share.

we had expected $1.10. further $1 billion buyback targeted in london stock and a promise of more to come. the cash bonanza fueled by a recovery of aluminum and copper prices. this does not include the stakeoming sale of their in this company in indonesia. that will bring up another $3.5 billion. it held onto all of this cash instead of giving it back. it will be a solid net cash position by now. haidi: is it burning a hole in his pocket? pre-much every time we talked to him, the answer is always the same, no. they are waiting for change. to be fair, a lot of mining companies probably overpaid for assets during the boom and now

they are unloading. mantraver volume is the area they are not doing anything stupid. that is a direct quote. let's listen to what he said earlier. >> what is important for us is to focus on growth which is of ,igh quality, and my view volume, doing it very well [indiscernible] an average person. create value. to [indiscernible] rio tinto is but keen on expansion and thinking about expanding in mongolia, looking into a joint venture in arizona with bhp. , going throughen

rio tinto results. we will watch these lines coming through from the tesla, elon musk call. they say they are competent with cash flow and gaa positive. they are being asked if they are running money, elon musk said they are saying no. no decision made on where the model will be produced and also being able to find a factory location in europe. get more on that, on tesla because it beat estimates. tesla moved to divide investor -- defy investor logic. we'll see if it can stay in production. this is bloomberg. ♪ s bloomberg. ♪

i am haidi stroud-watts in sydney. ramy: i am ramy inocencio. you are watching daybreak australia. let's look at u.s. markets and

go to tesla we had the latest on auto sales for the major manufacturers. all reported declining u.s. deliveries for july. this is a big test for the market. automakers rolled back incentives. su: they have been doing this for 4.5 years or the question is what would happen if they removed them? it is not pretty. take a look at the way the major automakers performed. a lot of the stocks under pressure, some more than others. very rough month. in inof automakers reigned the forecast. it will be restructuring for almost five years. let's go through the charts one by one. you will see all of them miss the estimates for the charts we are seeing. dropheir sales set to 3.3%. the company not confirming that down 2% on the day. they are cutting their forecast. fiat chrysler, shares down 2% on

the day. i am showing you the big chair -- big picture charts so you can see the pressure of the auto industry. they were a rare bright side -- there were a right -- take a look at nissan. this led the plunge. what we had was their sales down 50%. the stoxx not as damaged as the other companies but in terms of pressures on the industry, a lot of analysts are saying what we are seeing is not only an american public moving away from buying cars, the new generation is using temporary car sharing but a lot of the used cars are now a terrific by. -- buy. you see a lot of the least vehiclesbeing -- lease being returned. that is putting pressure on autos. haidi: thank you. we will get back to tesla, shares jumping -- what a jump.

less than expected last quarter. during the conference call to time to apologize for his behavior during last quarter. for would like to apologize being impolite on the prior call. [indiscernible] the reasons for it, and i have not got sleep. , 10 hours,t of hard 20 hours, but my body [indiscernible] joining us now is david garrity. we certainly were expecting a more measured elon musk. we got a contrite elon musk as the conference call continued. where we surprised at the reaction, the oversized reaction in after-hours trading?

david: there were negative sentiments built up, and the company was able to meet revenue expectations were approximately $4 billion that was encouraging, especially given the weakness of the broader market. investors have to be cautionary going forward not just because of what musk has to say in terms of changing his behavior or expectations around cash flow in the second half of the year being positive but if we look at how the tariffs are as splitting between the u.s. and china and autos clearly are right in the crosshairs as far as the contentious relationship is concerned. haidi: you look at his response, confident of cash flow positive, is that achievable for tesla? david: if you are looking at a weakening background in terms of industry environment, the tariffs being a significant factor, it will make life more difficult for tesla. the other thing to look at is during this first half of 2018,

economic growth was boosted. if we see a pullback in terms of consumer demand in the second half of the year, certainly all autos, not just premium electric vehicle autos, they will be suffering. i don't think tesla will be able to swim against that industry tied. -- tide. ramy: elon musk said he wants to get 6000 vehicles a week. now he is over 5000, depending on which week. pop into the bloomberg as we talk about this. overan see where it is, 5000. 6000, is it possible? by 2020 he wants to do 750,000. david: if you look at the auto manufacturers plant, they have production volumes of 200,000 to 300,000 vehicles a year, so what rate is being indicated by musk for tesla is matching what other manufacturers would do out of

one automotive manufacturing plant. it is not necessarily a stretch. the thing that has been unique for tesla, the niche that they thepy, and i would argue charisma controversy if you wish that musk has brought. ramy: production quality is an issue that has come up. we all have seen pictures or video of the tent set up. to what degree is this an issue trying to push forward this many vehicles? if you are going up against manufacturers in those price points like a bmw or mercedes or the high-end toyota lexus, these are manufacturers who have known how to build quality product for years. the fact you are building product outdoors certainly will leave you in a situation where you are running risks. these are high-priced products and many manufacturers are building in controlled

environments and tents are not. haidi: is there a big question mark over the capacity that it is limited to battery production? david: that is in the gating factor because as we look at electric vehicles and other uses for lithium batteries, there are significant supply constraints to be considered. one needs to look at rare earth metal supplies in other categories such as cobalt. in this regard, whether we are looking at tariffs pushing up or cost of steel or aluminum other necessary product categories, tesla is, like others, subject to pressures. how do they recover from that pricing without necessarily suppressing demand? we saw another distraction i guess you could call it with his efforts to help the boys trapped in the thai

cave. of that point to a fundamental question for investors, and existential question of what is tesla? is it a car company, tech company or something else? david: you have to give him credit for having vision. what he has to offer in terms of ideas, transportation of humans, terrestrial, in the case of tesla, or interplanetary, in the case of spacex. he has possessed a great passion . the question is to what extent is heideas focusing and executig well in the specific area of tesla as far as investors are concerned? there have been questions on the acquisition of solarcity. was he serving the auto sector well? there are questions by the former workers as to whether there have been discounts in terms of tesla sales or production numbers. ramy: trying to do all the things elon musk is doing begs the question on whether he has

enough money going into china, europe, the crossover, the roadster, the semitruck. $10 billion is what goldman sachs says he needs, but mr. musk says we will not be raising equity. david: he may not be raising equity but he has been going out into the debt markets or going out to the banks for long term loan facility. the equity holders might be ok, but i would argue you will find the funding gap will have to be filled from somewhere. one of us will have to ask what are the terms demanded in the event these are commercial bank loans that are coming in, or whether he is going back to the fixed income market or the fixed income market will want to have comfortable features? there are convertible features on the let -- the debts and loans being raised. to your point, he says china will use a loan to fund the giga factory with local

debt. we will leave it there, always great to have you. -- arch bloomberg users can interact with charts shown using gtv . you can browse recent charts featured on tv, catch up on analysis and save those for future reference. this is bloomberg. ♪ this is bloomberg. ♪

ramy: i am ramy inocencio in new york. haidi: i am haidi stroud-watts in sydney. you are watching daybreak australia. that is a must it, but yvonne and remy are up next with daybreak asia. look at the next two hours. yvonne: it will be about the fed of course. we did see minor tweaks in the statement from the chair and also talking about this cements the fact we could see the september rate hike.

not sure about the effects of december. there was interesting things about the language of now. seems that was omitted in the statement, according to what powell said. is this a hawkish stand from the fomc, whether we are seeing more rate hikes in the second half of the year? ramy: we will also look at more on what is happening with tesla. the call is still going on. elon musk apparently has had a reversal in terms of what he has been saying and his personality from the first quarter, contrite and rational and patient. we will be speaking with dan ives, and insights chief strategy officer, in 45 minutes time. you can see the share price after hours has popped as much as 10%. investors are liking that. background were increasing in the foreground

again, ratcheting up trade tensions between beijing and washington. we will be joined by great guest, a lot of insight with what is going on in beijing. they say beijing has miscalculated. they are getting domestic pushback. china is facing a structural economic slowdown, vaccine scandal aimed at a lot of people , and now there is open criticism of their leader. how will he respond? the ball is in beijing's court how they deal with washington, and it is a tenuous and fragile time for that relationship and certainly you get that with that kind of trust deficit. lots more coming up on daybreak australia. i should say that is it, but more on daybreak asia. keep it here with us. we are looking at the open in asia, looking mostly to the downside. mixed downside. tech had a second day of gains

on the afterglow of the apple rally. we are seeing tesla moving now. by and large we are looking lower into the open here in asia. this is bloomberg. ♪ ♪

yvonne: it's 7 a.m. here in hong kong. we are live from the asian headquarters. i'm yvonne man. welcome to daybreak asia. asia-pacific stocks look for a gentle decline after a mixed session. wait trade tension and said policy. tesla winner after hours. learning through less cash and elon musk intends to focus more strongly on the model three. ramy: from bloomberg's local i'm yvonne manvonne yvonne: beijing condemns what it calls the u.s. blackmail. the reserve t