♪ haidi: it is 9:00 a.m. in sydney. an hour away from trading in the friday session. welcome to daybreak asia. raceillion, apple wins the to 13 digits. some say it could be worth twice as much. for decades after steve jobs and steve wozniak found this historic landmark. ramy: i am ramy inocencio where it is fast 7:00 -- it is past 7:00 on thursday in new york. check listed equities in new york, the dollar is higher and the yuan is pulling back. the trade, wilbur ross warns of

more pain for china unless the u.s. sees evidence of change. hurtng says tariffs everyone. a very good morning again and hello to all of the global viewers. looking at what has happened the past 24 hours, there is a trade for pain, and there is a trade for earnings. we saw that pushed back and forth in terms of equities. we started low but ended up mixed. we seek we don't know it is when -- where it is heading. a lot of central-bank action out of the bank of england. in terms of what is happening, the central bank is trying to figure out the drivers that are trying to come out from wall street as well. this was surprising.

maybe we will get another rate move out of mark carney. you spoke about the pain trade. if you look in -- listen to wilbur ross, he said putting beijing in that position of pain hopefully from his point of view, the trump administration's , they will get them closer to economic reforms. that is a long-term game. they the question is if could relate debt there. let's get you caught up with what has happened in the u.s. close. truean see if it was a tech trade. the s&p 500, the tech sector, helping to push that up. that was the biggest gain in the sector. the dow getting the most pain out of the trade issue of being flat. looking at the board, taking a look at the bonds, the u.s. 10 year fluctuating.

we have been talking about how that could end up 3.1%, the last threshold we saw earlier this year. this was the highest in the past few months. the japan genia, we see that picking up -- 10 year, we see that picking up. 4.84 is where we are at. is something to be on alert for because that could mean temptation for folks to pull their money out of global bonds and send it back into japan. haidi: let's look at the set up for friday. terrible thursday session with asia-pacific stocks. looking at a flat session in new zealand, on the stoxx a little brighter after yesterday. the nikkei looking undecided at the moment. markets underng pressure. bridging very close to

the 103 level. dollar-yen, one to watch. the only decline or after the bloomberg index. also watching up for offshore yuan which is close, 1.5% trump hitting -- from hitting an all-time low. somewhere in the mid sevens for the dollar going into mixed -- mid next year. ramy: let's continue with one of our top stories. the trump administration is in no hurry to back down in the trade dispute with china, that as wilbur ross signals more pain ahead unless beijing changes its trade behavior as well as its total economic system. let's get the latest from the washington reporter greg sullivan. how much should we read into this aggressive stance? we ask this all the time. where are we now? greg: the question does come up a lot. the administration is not

backing down from its aggressive stance. in the short-term the administration is trying to drive china back to the negotiating table by increasing the threat with this new increased tariff level they announced yesterday. right now talks have broken down between chinese and u.s. there are probably back channel lower-level talks, but no formal talks scheduled, nothing. in the long-term the trump administration wants to whittle down the trade deficit it has an force structural changes. ramy: is the u.s. strategy likely to succeed in some kind of midterm or long-term timeframe? greg: as we said before, there are no talks. given the u.s. demand for talks to happen, that beijing be open to structural changes, it is hard to see those even starting. furthermore china is vowing to retaliate. it is saying it will not back

down, calling u.s. actions blackmail. on the trump administration side, they have a strong economy going for them. that economy is strong, but should the effect of the tariffs start to change that, their political calculus could change how they move forward. haidi: talk about the very strong sections that have been proposed for russia? certainly that would make them pay attention. what are the editors proposing, what is behind the push? a group of bipartisan senators introduced very strong sanctions legislation that would energy statessian back to energy projects as well as sovereign debt. in the legislation, some interesting points, they would require senate approval for the u.s. to pull out of nato and a report on vladimir putin's

assets and net worth. the senators seem to be responding to russia's continued efforts to interfere in the u.s. elections including the midterm elections. they have in mind president trump who has appeared reluctant to criticize putin and equivocated in the helsinki summit whether he believes the u.s. intelligence community's assessment. not just pushing back but also drawing a strong line against the country in what they see is -- as absence. haidi: thank you so much, greg sullivan, bloomberg washington reporter. lots going on. let's get you to first word news. zimbabwe election officials say one man won the election with 50% of the vote and the opposition is alleging vote rigging and six people killed this week in postelection protests. the violence may undermine

efforts to reunify the nation and rebuild an economy battered by almost two decades of miss rule under robert agape. apple is making market cap history. 3% gain thursday made apple the first american company to be worth $1 trillion. decades after steve jobs and steve wozniacki on the company, apple beat amazon and google to the landmark. -- they hit one million -- $1 trillion but fell in the financial crisis. cut theabia has september pricing across the mediterranean as it boosts supply to meet demand. aramco lowered the premium for arab light to asia by $.70, bringing it to $120 above the benchmark. u.s. crude futures bounced from a one-month low. complaint -- there is continuing supply drain. 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: thanks for that. mark carney will not rule out raising interest rates before he leaves the bank of england next june though he and i both -- he acknowledges brexit could change everything. kathleen hays here with more on the boe rate hike. what about brexit? the brexit torpedoes, full speed ahead. this rate hike was expected. one thing unexpected, unanimous vote, the whole monetary policy committee on board with this. in the face of all the uncertainty, why is mark carney, why is his team determined to move rates higher? let's go to the library and look at one of our charts. you will see the bank of

england's key rate on the bottom. it has been moved it has been moved down to 0.75%. the goal line is headline inflation. look how much it has come down, 2.4%. the core rate is below 2% but for the bank of england, this is too much inflation, too much chance. if they let it stay high, it will create inflation. that is why they decided to move. let's listen to why mark carney told bloomberg television earlier today, making it clear if the situation warrants it, he is ready to move again and people say probably before he leaves in june. >> the important thing is this is the right decision for the economy given the track is on. obviously there is a wide range of brexit outcomes possible, and we hope by the end of the year we will be much better informed which path the u.k. and the e.u. are taking.

kathleen: with so many brexit outcomes possible, nothing before the march deadline, but possibly by may, just before mark carney gets ready to leave the bank of england. ramy: turning to the bank of japan's policy decisions, they keep reverberating across global markets. yesterday they had to step in again to curve a surge in yields in the jgb's, and that was 18 month high. what was interesting about this day, it was unusual. yesterday they stepped in to stop the yield from rising too quickly to 2%. that is the new top of range they announced at the end of the meeting tuesday, but they were selling bonds. it was so weak and that the boj had to start buying bonds. let's look at the library, such an interesting interview --

afternoon. you can see how traders have been testing the are you can see the yield got up to 0.14%. that is what the boj was pushing back against. the demand was week. they felt they had to do something. governor kuroda made it clear we andt want to race to 0.2% the deputy governor speaking yesterday made the same kind of statement. he said if yields rise rapidly, the bank of japan will buy jgb's quote. that is what they did. today will they buy more bonds at the tenant clock a.m. tokyo time auction? that is what traders are waiting to see. ramy: flexibility is the name of the game, making sure everyone is on their toes. kathleen hays in tokyo, thank you. ahead, how trumps trade war could undermine china's leadership it we will discuss

political implications with award-winning author richard mcgregor. haidi: is it time for a pause on the hike path? eric ames tells us why the central bank needs to keep home mortgages in mind. this is bloomberg. ♪ is bloomberg. ♪

china resources 40% partnering a holding company, heineken and china resources reaching this fact. there has been rumors of reports going back to march this year this was a deal and talks underway. china's largest brewer, talks tolly, was in get the heineken china business. this is part of a broader trend as we see the likes of heineken seeing above -- abinbev

rivals, domestic challenges very strongly. ramy: consolidation, trying to be part of the game. looking at previous reporting, back in march, that is when this first had been rumored to have started. the shares jumped 14%. it will be interesting to see what happens with those shares once the markets open. let's get back to the markets, but the u.s. market, where tech helped lead the game and that was banks. we also have cbs, aig and shake shack making moves. after hours, they report earnings. su keenan is here with highlights. let's start with how apple offset declines by the major exporters. take the heatd off the industrial companies that took a hit. let's go to the market snapshot because we can do that with the dollar stronger and oil moves in opposite directions. if we go into the actual markets, the nasdaq 100 putting on strong gains.

let's go into the big movers because tesla soared the most since 2013. shows you what a mea culpa from a rather maverick ceo can do. he apologized to the analysts. performance was well. somebody said he acted like a ceo. boeing, dupont, all down as there is concern about [indiscernible] coming down with the latest round of tariffs. let's go into the bloomberg. what was not taking a hit, gtv is where you find our charts, apple some of the first company to hit $1 trillion, before noon. also did that, but only briefly. no one in the u.s. has done it and it was after four decades under steve jobs who started ,his company in a garage revolutionized computers, mobile communications. we got microsoft, amazon, apple

-- alphabet around $800 billion, knocking at the door. a real milestone day for tech. let's get to the after-hours movers. we have three big names, cbs, aig and shake shack, big stories, different reasons. su: let's go to the after-hours board, aig taking a hit on its investment portfolio, larger than expected underwriting. cbs and focus. they said don't ask, don't tell on the conference call. what we have is a company that performs very well especially with paid tv. the questions about les moonves, the ceo hit with allegations from six women he allegedly harassed. there is a report there could be another story with more allegations. a story about his future is weighing on the company.

on the conference call, it was his first public comments since the allegations. he did not address the issue, and nobody asked. there is a legal issue from redstone. shake shack, it is under pressure for slower sales, up 50% year to date and a lot of people ready to short this. it will be interesting. many you can only eat so hamburgers i suppose. it is the summer season. let's bring in the wealth management founder and president here. there is so much we can talk about here. let's go into trade now because that clearly is one of the two big themes, earnings being the other. let's talk about the back-and-forth headlines. make sense. >> we are seeing the volley back and forth. billion gocally $20 to $50 billion with the swipe of jockeying,we see

we'll talk about what will happen, how it will pay out. -- layout. we want to know how it will affect the united states. a lot of people will say china is weak, but let's keep in mind they have had a growth rate that is strong. they can pull the levers fast on monetary from a physical standpoint. we want to be cautious dealing with cultural differences and how you approach that. ramy: one interesting back-and-forth we are having with some bloomberg analysts is it will hurt china more than the u.s. some say the u.s. doesn't want this to happen. we have this gtv terminal. talking about how the shanghai composite, talking about entry-level valuation in the white line and the s&p continuing to runs -- rise.

eric: if you dive into emerging markets in general, you look into etf, it will run 30% china. what you see is indicative of what has happened. one might think it is a good time to think about rotating out of the u.s. into emerging markets, making some sort of lower volatility type of strategy. we are really running on a 10 year bull market. got four interest rates coming ahead, a lot of tax stimulus. we will get to the end of that when people get tax returns in april and got -- get them done with the anp. haidi: to clarify your view whether it is opportunistic to get back into em, i know it is a question of whether all em is the same especially if you count china as an emerging market at the same sense as the other

ones. are there opportunities or is the momentum going against emerging markets? eric: from our client base, we are getting a lot of questions about chinese companies and whether or not clients own them. we are seeing excitements around these, not so much the other countries. we think it is a good place to have a sliver of your money, probably more than you would happen bitcoin as i said -- someone said the other night. mary.s kind of a hail we do think it is a good place to have your money. as the u.s. kind of gets long in the tooth and we see what happens, if the yield curve happens to invert, it could signal weakness moving forward for the united states. haidi: that may be even more bearish on em if you compare it

to slightly that are than bitcoin. i want to throw up a quick chart. i want to get your view. we have been talking about this rotation. stop buying everything growth, stop rotating -- rotating into at fundamentals, preparing for the rising rate environment and volatility to come. this is looking at the popular trends like u.s. stocks versus see a dip, -- you then there is a recovery. is there a meaningful market reset or rotation taking place now? eric: it is not happening at the moment. it is on days when we see more volatility. one of the things we talk about ad here a lot about -- hear lot about is what apple is trading at. you have got clorox at 22, 23. you have bigger names, consumer staples, trading at good

multiples, but they are safe. you look at a basket of as i like to call it shampoo to soft drinks, telecom, you look at 3% dividends. a lot of folks will want dividends, great place to pick up income especially with this sell them, go away. in the midterm you will see volatility more than the summertime break. haidi: great to have you on with us. the president there in new york. users can interact with the charts shown. gtv , browse the charts featured on bloomberg tv and catch up with the analysis and save those charts for future reference. this is bloomberg. ♪ bloomberg. ♪

haidi: a quick check of business flash headlines, nikkei news says shark will stop making

household appliances. the report says the company will this year production and stop making refrigerators in osaka in fiscal 2019. production will move to thailand japanesehere and sharp facilities will concentrate on high-value electronics components. ramy: mitsubishi's profit rose as stockholding gains and they fall in bad loan costs made for a slump in trading. net income climbed to $2.8 billion through june and they keep their target of $7.5 billion. they and their rivals are under pressure from the bank of japan stimulus programs. group has higher earnings when the flagship companies, giving a positive start after taking over from his famous father. hutchison holdings rose 13% to $2.3 billion u.s.

21% to $1.5ased billion u.s. ♪

sydneyit is 9:30 a.m. in . 30 minutes away from the open of trading across ages major markets. -- asia's major markets. things will hopefully look better. we are looking pretty mixed indicators, looking at futures markets. p.m. thursday in new york. markets closed up a half percent on the s&p in large part thanks driving downs and even deeper thanks to apple after it hit $1 trillion. we are in the dog days of summer. folks are out there. -- 33 degreess celsius, hot and sticky near the

end of summer. ramy inocencio in new york. haidi: i am haidi stroud-watts in sydney. let's get to first word news with jenna dagenhart. isna: the commerce secretary signaling more pain for china. he told foxnews the administration will create a situation where it is harder for china to continue bad practices and then it would be to reform. beijing has pledged to respond in kind. the foreign minister said tariffs could hurt american companies. >> we live in a globalized world. we are not doing 19th century trade. good all from one country to another on the globalized industrial and all chains. 60% of chinese exports to the united states are actually made by foreign companies including american firms in china. as -- is the united states

trying to put tariffs on its own companies? jenna: the bank of england raise rates, but some say it jumped the gun. it is now the highest since 2009 when policymakers are saying further hikes will be needed for inflation. the british chamber of commerce said they should have waited until november meeting, to take into account crucial brexit deadlines in october. spacex on course to beat going to be the first company to send astronauts into orbit. nasa said spacex aims to launch ewedfirst crude -- cr flight in april. nasa awarded them money to america'sit -- revive ability to fly to the space station without buying seats on russian rockets. -- u.s. finance their minister will return to work after three months offer a

kidney transplant. his office was being renovated and sanitized to protect him against infection. he has remained active on social media during his leave, addressing issues including the rate. 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: thanks for that. we are counting down to the major market opens in the asia-pacific. let's get to sophie kamaruddin watching the open for us. we had asia stocks looking to set the ending of a volatile week with some gains. better late than never. we had a horrible thursday's session. friday looking better? haslinda: futures -- sophie: futures are indicating it could be better. china may not be able to see a

rebound. futures are signaling potential gains for mainland markets even as wilbur ross says --stays tough on trade. we have commentary some of the people's daily reporting outlook is positive, the security general raising measures for capital market. encouraging overseas firms to list. pboc may cutaying the rrr for some banks once or twice in the second half, but the headwinds remind with msci china. the seaside 300 seeing its worst slump in a month, down 23%. the yuan, that could be the red flag bearer. not too far off from the all-time low earlier reaching the 6088 handle. bigger price swings looking likely with the offshore yuan's one-month fall.

this is even before we get to september, a month that sees the highest volatility and next month marked by the u.s. decision whether to go ahead with more tariffs, $200 billion of chinese goods. the dog days of summer are here. ramy: moving ahead with u.s. midterm elections, who knows what volatility it could be. what else could drive market sentiment? sophie: after u.s. stocks got their mojo back and thanks to tech optimism, that could translate to asian futures, seeing how we set up this friday. on the data front we have south korea widening in june, helped by strong command -- demand. later we have aussie retail sales, malaysian trade and pmi for singapore. when it comes to earnings we are waiting on toyota to report today, suzuki reported thursday,

operating income topping estimates. we will get reaction to mitsubishi financials. and nippon steel. they failed to dent the boom in steel prices driven by shrinking chinese export and expanding demand. that helped up the profits. ramy: thank you very much, sophie kamaruddin checking the markets. one of the other top stories, apple making wall street history , the iphone maker soared since its earnings report to become the first u.s. company with .arket capital over $1 trillion let's cross to san francisco and bloomberg technology reporter mark gurman. there are a bunch of numbers zeros.2 do we have to care or do we love zeros? mark: inferences -- in san francisco we call it the four comma club.

it is historic. .oes it mean much? no it is representative of what apple has become. the jobs passed away, tim cook takes over. the question comes up, can tim cook fill the shoes of the greatest inventor of the history of the world for the last 100, 200 years, the guy who dreamed up the iphone, the mac? it turns out the answer is yes. he has tripled apple's market cap by coming out with new products like the apple watch, the iphone x entered into a trillion dollar company. haidi: it has been a remarkable road to get here, being a $1 trillion company. what comes next? how much more upside is there? mark: i think there is a 10 of upside for apple. it is ironic because we are

coming to the end of the road for the iphone in terms of year-over-year unit sales growth which is what we care about at bloomberg, but what we see is the iphone becoming the hub for a bunch of other new products like the watch and the services business in a $50 billion business. a lot to go down this road even though we are becoming toward the end of the iphone growth story. thank you for your time. a technology reporter coming to us from san francisco, tracking the story about apples milestone day, the $1 trillion company. some consumers say gear is easier than investing -- impressing investors. debut reallying broke out of the price range. wall street did not help sentiment. the ceo insists his company is

different. >> if the roadshow was about educating investors in terms of our model, the quick reaction is always, they make great-looking speakers, so they are a hardware company. we had to spend time helping investors understand we are a totally different type of company that builds our next that last for a long time and people come back and buy more of them. barinka joins us now from since it -- from san francisco. it was a muted debut? alex: it was, no pun intended. $17 to $19t below range they had marketed, and it seems the public investor community could not shake the comparison to the other hardware makers like fitbit or gopro. those companies have had concerns around profitability,

around what is next, around products that are sticky but also customers who buy them want to spend to upgrade. those same kind of questions i think were on the mind of investors as they went into this deal. as you saw, so knows got a -- sonos got a valuation far off from its target. haidi: the question is, is there redemption in trading? alex: it seems like there was. the stock closed up 33%, which is a good pop when it comes to u.s. ipo's. that is what you want to see, but that is from a level that is further down than where they would have wanted to begin with. ramy: moving from here in terms of buying sonos gear, where will the growth come from? it is one thing buying the gear versus buying the stock.

alex: folks love their speakers. everyone i talked to, run into, let's their gear. right now the company for investors, it may not be enough. they are pushing the idea that voice activated speakers and streaming music will be a big boom for business. doing moresed to than listening to these things and want to bring it into the home. that is interesting for them to push into because you have players who not only are they working with to use voice-activated controls like amazon and google but also coming out with lower end speakers of their own. lots of competition here and point probably needed in terms of this going forward. amazonou talk aboutramy: and alexa, they are a partner

and competitor. explain what is going on. isx: the ceo told me amazon a partner. they use the voice activated alexa, but they are hoping their situation as an open platform, bringing amazon and google will in theem switzerland voice-activated world when it comes to speaker business. ramy: bloomberg mergers and acquisition and ipo reporter alex barinka from san francisco. coming up, why senator marco rubio says zte is part of beijing's broader plan to infiltrate american infrastructure. this is bloomberg. ♪

haidi: -- ramy: you are watching live pictures of u.s. president donald trump doing a campaign stop for a candidate for

congress in the state of pennsylvania, wilkes-barre, pennsylvania. we are getting lines over the last hour. let me recap these. he has said on nato that now he isall for nato as the money pouring in. you remember he had discussions with nato trying to get them to increase defense spending on the -- defense spending. on russia he said he is being hindered by the hoax. he also said he got along really well with putin. that is the headline. trump said he got along well. he said he had a great meeting in helsinki. this: he is referring to wall with mexico, saying things will get very nasty when it comes to the wall, but really kind of talking across the major

contentious points politically. we have not heard much in the way of commentary on the trade war, the tariffs, though i expect he could detour towards that topic. certainly talking about his meeting with putin, saying they got along well, great meeting in helsinki. as we have become accustomed to from president trump, he is having a go at his detractors. for: on the campaign trail his candidates. less than 100 days to the utep -- the u.s. midterms. let's get more on washington because the u.s. senate passed a sud de france bill and agreed to ban the federal -- a senate defense bill and agreed to ban something made by zte and huawei. lawmakers decided to drop attempt to reinstate harsher sanctions against zte. marco rubio explains why it is a

concern. zte is part of a broader chinese plan to overtake the united states. they seek to displace us in the world. i will not be standing by while we get replaced by a communist tutorship. do witho know what they our information, whether intellectual property or military secrets. much of the growth they have made is the stuff they steal from us. it is a communication company trying to embed itself in american infrastructure, knock us out of business and put in routers in internet system for the can open backdoors and deal research from universities. i don't know why they are allowed to be involved. >> the argument i hear from the zte folks is this will negatively impact u.s. jobs, u.s. businesses in certain districts because of the supply chain. what i'm hearing you say is -- .> that is funny

they don't allow american businesses to go into china and do this. let's be there. watch should china have their businesses come here and they don't allow us to do the same over there? number two, i don't believe the argument about supply chain. demand is there, domestic carriers can meet that demand. that will help american workers. on the point you made about even if it were true it was a supply chain, the price should not be our national security. i will not allow a company to help china spy on us in exchange for short-term jobs they are offering. senatorhat was u.s. marco rubio talking to kevin cirilli in washington, dc. china is ready to retaliate at any time if the u.s. takes the trade dispute to the next level. let's look at the current situation where we go from here. it is great to have you. we keep talking about talks about talks maybe.

at this point we are having the two sides throwing more bombs at each other. could we see this become a full-blown trade war? richard: absolutely. one side said they are not talking, once as they are. china really has no negotiating partner in the u.s. because the u.s. administration is split. you can't go to trump until you are the end of the negotiation, so it is hard to see how it starts. there was a point in time months ago where everybody said trump would back off before the november midterm elections. it doesn't look like that now and now the $200 billion worth of goods targeted for tariffs really come into play. haidi: we have had quite a few guests coming on saying president trump will be looking for a win before the midterms, president xi would use consolidation of power to secure the place. i am looking at a lot of stories and essays.

you know the essay i am talking about that suggests president xi is with the economic slowdown, the declines in the yuan and stock market with this vaccine scandal, that he is in a more precarious place than we have been looking at. is that the reading your take? richard: i do but it is hard to judge and calibrate. i spent two weeks in beijing, and that was the sense i got. the start of people beginning to articulate a push back. it doesn't mean his position is he is not in trouble, lose his job or that would've think. we might have reached peak xi jinping. he has gone far enough and people are wanting to find issues to criticize him over. there are many issues. one of the most interesting is trump and u.s. relationships. xi jinping is not responsible for mr. trump's negotiating style but in politics that of the matter. many people are using that to blame xi jinping for messing up

china's most important collateral relationship, perhaps imperiling parts of the economy would is slowing, and causing all sorts of other trouble for china around the world potentially. but trump is a company getting factor for xi jinping. haidi: [indiscernible] we have seen that playbook with korea, japan in the past. richard: it is not easy to control the u.s. or trump. china needs the u.s. as the u.s. needs china. they can't afford a fracture and they don't know how to handle trump. the big light went off in their head to her three weeks ago with the first batch of tariffs, and immediately trump announced the $200 billion target and that galvanized china, shocked them loinsey are girding their for a longer fight. haidi: i want to look at this chart. looking at underperformance,

emerging markets as a whole has been slammed by the stronger u.s. dollar, rising rates and this trade war, but china has been the biggest underperformer, .e it the yuan or stock markets when you were in beijing, in terms of the discontent, that is something that did it because basically entirely retelling this. richard: the stock market is not a barometer for the chinese economy. it is a barometer for a different sort of sentiment. i would look beyond the stock market and look at the currency morese the currency is sensitive. we see depreciation in the chinese currency, not a large one, quite natural given rising u.s. interest more sensitive. rates. some suggestion china would use the depreciation to offset the tariffs, but that is dangerous for china because it is appreciating currency and leads into capital flight and all sorts of other problems. in theancial issues

currency and stock market are another one of these signs of brittleness in china at the moment. ramy: interesting talking about the yuan. looking at an offer, 6.87. to what degree do you think this can continue to weaken in the face of a stronger dollar? how much can the citizens take? i think we can see a weaker chinese currency if it is on the fundamentals, the basic fundamentals. if the u.s. heats lifting interest rates, if chinese interest rates remain low, if chinese economic policy is basically stimulatory, i think a small depreciation against the dollar or the larger basket of currencies is quite natural. it gets dangerous if it looks like it is being engineered and starts to become rapid because that is the point when a lot of people start to get money out of the country.

were living in beijing, it was like 8.26 or so. where do you think this could really go? richard: i do not make a prediction on currency rates, but i certainly think over six months it could go up to seven. i'm into production for you. ramy: ok. in terms of monetary easing, we have been seeing deterioration china.financials in we are starting to see a little when it comes to possible triple archives coming out. to what degree is there possibility that the pboc could say, we will open up the spigots a little bit, but on the other side you mentioned in terms of capital flight, it is something they have been fighting for a long time? richard: we have had mild stimulatory measures, relaxed

bank reserve rates, slight tax cut, tax thresholds. one person described that quite well. it was a painkiller instead of a steroid. but there is a big debate now in china because direction of policy is towards deleveraging which means slower economy. there is quite an open debate or fight between the pboc and the finance ministry. the pboc does not want to be responsible for stimulus. just more bank lending. they would like the finance ministry to pick up the slack. those tensions are playing out well.ying out as if xi jinping doesn't want a slowing economy, are the officials below him going to over perform to do what they think he wants them to do and -- so he so he doesn't does get short-term growth and no problems? it is difficult and hard to get an insight into the policymaking

process in china to see what president xi knows and what he wants and how much pain he will accept for the economy so china can continue to go through some form of deleveraging. haidi: appreciate your time. the senior fellow from lowly institute. -- lowy institute. from the zimbabwe election, the opposition party will be challenging the result in court. we had emerson declared as zimbabwe's presidential election winner, but it was a very close fight in the end. he scored 50.8% of the vote. his main rival leading the movement for democratic change, 44.3%. a courtve potentially battle being set up to determine the result there, so uncertainty coming through that election result in them -- in zimbabwe. ramy: let's look at the business

flash headlines. heineken and china resources aboutonfirmed speculation a tie up with a dutch brewer becoming a partner in a deal with just over $3 billion u.s. china resources makes the biggest selling beer and shares left -- went to their highest ever. bank of america merrill lynch said it could be a game changer for the brewing industry. china's struggling hna group expanding options for the babylon aircraft unit. hna has sounded out potential buyers including companies controlled by hong kong billionaires. avalon had a book value of $7 billion at the end of last year and has the potential to be among the biggest proposals. we are counting down to the market open in japan over south korea and australia, looking writer given the terrible thursday session we had. nikkei futures indicate a high

of .4%. seoul also looking higher. futures showing marked improvement after the asia wide selloff. ♪

♪ >> it is 10:00 a.m. here in sydney. welcome to daybreak: asia. the top stories this friday -- . to andcific markets look of the week with gains after lifting equities in new york, where trade tensions can in -- tensions continue to cast a long shadow. beijing says tariffs hurt everyone. >> and from bloomberg's headquarters in new york, $1 trillion, apple wins to third team digits. some say it could be worth twice as much.

meantime, for decades after's tv started john laws knack apple, it beat google to that historic landmark. haidi: we may have tit-for-tat. but we are starting to see a bit of positivity. markets putting that to one side for now. with.o contend it has been a big week for central-bank policy, fred developments in this trade relationship as well. it is hard to find directional conviction and's kind of market. ramy: it depends on which sector you are in. if you are in tech, especially with apple, the nasdaq rising

one-on-one percent in almost -- in our most recent trading session. but if it had to do with trade, like with the doubt, that ended a flat. it is a seesaw. ande weighing on one side earnings lifting on the other. haidi: let's take a look at the market open. thoseke about how awful were if you are long equities in the region. is friday looking like we will get into the weekend with a little more optimism? sophia: thursday's losses could mirror.e rearview we have green across the screen for asian stocks following a rally in wall street after a volatile week. you have the nikkei and the cost be -- kospi gaining. when it comes to the commodities space, gold trading near a one-year low.

producers are also feeling the pain. july market fourth monthly decline. but aussie gold players boosting some of the sectors best margins, low debt and cache files. oil holding gains after bouncing back from a one-month low your checking in on the offshore from ant too far off all-time low. wilbur ross says there is more pain ahead and china threatening retaliation. sterling sliding with the market unconvinced with the economic outlook. 1-30 --loser to the 1.30 line. ,he boj operations this morning

the benchmark yield touched on a time -- an 18-month high. we will see rising chinese sales helping to offset lagging sales in the u.s. as well as in japan. ground,teel losing despite seeing the high school he profit since 2009, which was supported by higher sale prices nikkei news saying that sharp seeks overseas contribution to profit 80% with growing demand from china as well as southeast asia. and a look at mid to be see -- mitsubishi financials, little changed. this was thanks to gains on sales in stock holdings, which offset a trading slap. the details -- trading slump. the details are looking up.

the big picture here ultimately, japan's big banks are looking on track to hit their annual topicals, even before the small helping hand they got from the boj, that may ease the burden. ramy: extending the range, to see how flexible they are. thank you very much. the boj decision to alter the yield curve was called a minor tweak by economists and strategists. but it is more than that from bond traders and investors. on aeen hays has more run-of-the-mill bond buying operation that has become top of the must watchlist. talk to us about the significance. kathleen: this has been quite an interesting two days, actually, an amazing week. on aank of japan decided

yield control tweak, a doubling of the range, not just 0.1% on either side of zero. now 0.2% on your side. -- on either side. let's put up a chart as i talked to you about the events yesterday that led to the focus today on the bond by airing operations -- bond buying operations. up.d shoots yesterday afternoon, it shot up to 0.14%. what was going on? the japanese government was selling bonds. investor demand was very weak. was that very surprising? how much you want to load up on five to 10-year jgb's? the bank of japan has said in the past they will not buy bonds on a day that the government is selling them. they in and offered ¥400 billion

of jgb's. it was a move that nobody expected. that made it all the more powerful in a way. again today, traders are waiting to see what they will do. again, yesterday's operation was not scheduled. that is why this is so important. that is why there is more -- what do the boj you want to call it? -- a holy world in the bond market. it has taken -- a whole new world in the bond market. it has taken all of this to a new level for sure. the boj is not only pushing back with bond purchases, but with words. kathleen: absolutely. whoe is a deputy governor was giving a speech yesterday and made it clear that the bank of japan will fight back against this race to push the top of that yield limit. he is the man given credit for

developing the whole concept of yield curve control, trusted aide of governor kuroda. many are speculating he is the person at the center of this range, tohange this make what looks like a small step that is potentially a big make -- big step for the jgb market. rapidly if yields rise come of the boj will buy jgb's promptly. we saw that yesterday at the same time he was speaking. he also said there was brought agreement among members of the board to take this step. i think another sign he is tried to show the boj is china to take a step. one more thing -- boj is trying to take a step. one more thing, they are easing policies for an extended period. they don't want people to think they are backing away by letting the yield go higher. that is part of the puzzle, too. haidi: kathleen hays out of

tokyo covering the boj and all the other central bank action. let's get you the first word news. jenna: the bank of england raised rates as expected, but some say it jumped the gun. it is the highest since 2009, with policymakers saying further hikes will be needed to steer inflation. they say the mpc should have waited until the november meeting. >> the important thing is this is the right decision for the economy given the track it is on. obviously, there is a wide range of brexit outcomes possible. we all hope, by the end of the year, we will all be much better informed on which path of the u.k. and the eu are taking. zimbabwe, the

opposition ndc is alleging that rigging at least six people were killed in protests. the violence may undermine efforts to reunify the nation batteredld an economy under robert magali -- robert mugabe. a bill includes affecting sovereign debt in russia and requires a report on president putin's assets and net worth. the fbi director says he is closely watching attempts to metal in this year's midterms. >> even as we speak, we have open investigations with a nexusn influence this -- fielding offices across the

country. make no mistake, the scope is broad and deep. jenna: apple is making market cap history. an almost 3% gain on thursday made it the first american company to make it worth a trillion dollars. applebee amazon and google to the landmark. beat amazon and google to the landmark. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ news we have breaking across the bloomberg terminal. sharp back in focus. the company confirmed it will stop making household appliances in japan. this confirms what we reported

in the past hour. the consumer electronics company will stop making those and relocate production abroad. you can see sharp on the move, of about .9%. it had been higher -- up about .9%. it had been higher, but paring those gains. you can see sharp's one-year down by more than 25%. the company also says it will reassign its employees that have been affected. haidi: one to watch in today's session. we will get back to our top story of worsening trade tensions between china and the u.s. wilbur ross signaled more pain ahead unless china changes its whole economic system after beijing said it would never surrender to u.s. threats. statements coming from

trump. he says china is not too happy with him. see if he has anything more to say about this potential trade war developing between washington and beijing. tom, he is not wrong. i imagine beijing is not terribly happy with the u.s. president at the moment. both sides keep saying they are still open to negotiations. yet their rhetoric just keeps escalating. yes.that is right, we heard from the u.s. trade representative talking about the need to give washington and a u.s. optionality when it comes to this trade dispute in terms of this decision to escalate tariffs. we also heard from wilbur ross, the commerce secretary, saying this is about creating a situation "where it is more

painful for them to continue their bad practices -- for china, of course -- than to reform." he also said, ross, that this was about ensuring the pressure would be escalated on china until it creates a level playing , and hadits markets hoped that the u.s., by putting tariffs in place, it would lead to a modification in china behavior. of course, we have seen retaliation. the president asked him his -- asked his staff to look at escalating tariffs to 25%. the u.s. saying they want two major demands, structural changes to the economy and measures to address the u.s. deficit with china. look, we havey, taken steps -- some would say baby steps -- to open up the markets, the financial sector,

for example, and the auto sector. china would say we have had three rounds of talks, prepared to increase our imports from the u.s. of course, trump made a u-turn. washington wants a lot more. ramy: is there any son right now that china might be starting to waiver in the face of these higher tariff percentages? tom: officially, no. i will give you some of the top lines we heard out of the government the last few days. we heard the blackmail line. we heard from the ministry of commerce saying they had to defend the dignity of the nation. we heard from the foreign minister that he was still open to talks. let's hear from him and i will get to some of the caveats. one, he is speaking recently about the need to avoid press and his openness to dialogue. >> the u.s. is trying to put pressure on china, that we don't

think such an approach will work. china is ready to talk to anyone who is ready to talk to us, including the u.s. but this kind of dialogue has to take place on the basis of mutual respect and equality. tom: what is interesting, below the surface, you are getting some indications now of discontent here in china. for example, some rereview asked from a couple of academics, pushing back on a couple of issues that the chinese government is handling, including the u.s. trade dispute. that has happened in the last few weeks. you also get -- and this is happening at a time when the economy is slowing, pressure on the yuan, pressure on chinese stocks, and president xi is facing this vaccine scandal in china -- many things that are creating a difficult situation for giants -- for china's

leaders. the dynamics potentially changing. it speaks to the fact that president xi has this incredible power, but is not immune from some of the domestic pressures that president trump is facing in the u.s. as well. ramy: thank you very much. still ahead with jgb climbing to an 18-month high, we will look at the rj odyssey with scotia banks -- at the boj policy with scotia bank. a look at the threat the has global bond markets on edge. this is bloomberg. ♪

♪ ramy: welcome back. this is daybreak asia. markets haveng lost momentum as trade were rhetoric ramps up.

the lira slumped to an all-time low as a political standoff with the u.s. took a turn for the worst. every time we try to call a bottom to this emerging-market selloff, we are proven wrong. is the negative momentum coupled with the things we do know, such as rising rates and the u.s. dollar, just too overwhelming? are think the rising rates priced in now. trade wars, trade frictions, the sheer uncertainty of what sort of tariffs will be levied, that has been continuing to rile markets. now we have a standoff. u.s. wants china to start talking again. but. they are saying we did talk in may. we thought we had an agreement. why should we go back to talks

now? there seems to be a bit of a standoff. trade wars are clearly not so easy to win. still a lot of rhetoric. i still believe an all-out trade war is relatively low probability scenario. haidi: eight goes without saying that you need to be a very active investor in this market. and we were probably expecting to do that anyway going into a year that has highs and volatility after 2017. what focus of opportunity would you see that work as potential hedges in a worsening trade situation? thing isk the strange there are two economies that are small -- strong

domestically-driven and suffer less than they small trade-oriented economies like korea and taiwan. they are the u.s. and china. considerwould wrestling in those? it is important to look at how strong the economy is in the u.s. they have not been shaken by these tariffs so far. sufficiente see policy easing, consistent across all instruments. guarantee the chances of a nasty slowdown in china the next 12 months, so pretty close to zero. profits should be once again picking up quite nicely. the fundamentals are looking good. don't forget, there is always a chance donald trump may wish to declare a deal ahead of the

midterms. if that happens, and i think the markets word very strongly indeed. haidi: i want to throw up a chart on this selloff. i want to see if you see these as being a bottom. we have chinese equities the worst performers in the world. sector wise, it doesn't make a great deal of difference. soul that saysve this is about to turn around [laughter] -- around? [laughter] >> one of the reasons for the slowdown has been a sharp weakening in recent months. china is a very policy-driven market. i think there is a very strong chance we are close to a

reflection point. the kind of measures they have been talking about after the meeting on the 23rd of july, householdike passing income tax desk cutting household income to that -- cutting household income tax by 5%. fiscal policy will make more of a run in. we know there was too much of a clampdown on tpp on local governments. they have undershot their fiscal target dramatically in the first six months. that will be accelerated. i have a feeling we are close to ideal in china at this point. yes, i would agree with that. ramy: thank you. a roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers can go to the terminal. this is also available on the

bloomberg anywhere app. this is bloomberg. ♪

ramy: let's take a look at the latest headlines. sharp has confirmed it will stop making household appliances in japan. lcd refrigerators in -- it will move operations to thailand and elsewhere and concentrate on high-value electronic components. haidi: net income rose 50% in 58% in india. total tax expenses rose by a

must 70% in the period, but oh ngc hasomg see -- but o not said what. coming up, dust has not said why. -- retail.

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which could save you hundreds of dollars a year. 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: we are getting ready for the friday session. day.ny, mostly clear we are looking at a positive fixture on this friday early session. ramy: you are watching daybreak asia. let's get first word news. is signaling ross more trade pain for china unless beijing changes its system. he said the administration will

create a situation where it is harder for china to continue bad practices that it will be to reform. kindng plans to respond in and says tariffs could also hurt american companies. >> the u.s. is trying to put pressure on china, but we do not think such an approach will work. china is ready to talk to anyone who is ready to talk to us, including the u.s.. but this kind of dialogue has to take place on the basis of mutual respect and equality. jenna: saudi arabia has cut september pricing of all oil rates to asia and the mediterranean. u.s. crude futures bounced from a one-month low as a report shows continuing supply from a

hug in oklahoma. aims to launchx its first cruise plane in september. india's finance minister is set to return to work in the next few weeks after three months off for a kidney transplant. his office is being renovated and sanitized to protect him against infection. he's remained active on social media, addressing issues, rate.ing the gsc global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries.

haidi: let's look at how the markets are shaping up. sophie: a reassuring column of green. equities gaining ground. we could see another surprise after the move we saw on thursday. in the currency space, currencies under pressure as the dollar is rising. yuan, that is looking steadier here. recover from some of thursday's slump. earnings on watch him suzuki jumping after a strong first quarter result. mainly due to higher

oversees the at gold sales. bloomberg intelligence is cautious going forward as a strong yen against the indian rupee and the dollar will weigh on profits. sales did beat forecasts. the stock is trading at a 26% discount. sanyo steel, falling the most in more than seven years. set to nippon steel is following an agreement we saw back in march to consider this acquisition. ramy: thank you very much. let's get to news we broke early -- earlier on. heineken partnering with china resources beer. the dutch brewer is looking for more growth. that is the world's largest beer

market, china. emma o'brien joins us from beijing. it is all about opportunities, trying to expand more people to what heineken is offering. this they are getting into chinese company which meeks -- which makes its own brand here in china, the world's biggest beer market. it may have already peaked here. the market is evolving, which will be a challenge for heineken. there is a push towards more premium brands. drinkers are becoming more sophisticated. that is something that heineken will have to take on with this investment. diia are we likely to see more i wouldation: -- haidi: likely to see more consolidation? we say more foreign

companies take interest in chinese companies. the potential for growth with the rising middle class. you have companies like asahi get into the bear market. ntao.ught into tsi they were not able to establish some of their premium brands here in china. there was the competition both from the locals and the more craft and premium beers growing locally out of china. so it will be a challenge, but one that hiking again -- won a heinekenis -- one that is going to take. ramy: looking through the trade war lens, we have seen a couple of chinese sectors, chinese industries open up. to what degree do we think this

might have something to do with possibly pressure coming from the u.s. and elsewhere? trying toa has been home thatw, to drum it is opening up certain sectors as part of its defense in the trade war. whether this is related, it is hard to tell. they are opening up in the auto sector. we saw bmw looking to have the most majority ownership here in china. there does seem to be rumbling movement in that direction, possibly related to the trade war. haidi: thank you so much. casino operators in macau seem to have been dealt a string of poor hands. take us through the latest mgm

second quarter miss. this is really a sector that has managed to get back on its feet. mgm, when we talk about mgm, we cannot not talk about vegas. it does make up 80% of the company's profits. it was dragged down primary by sales. it does call into question come in terms of whether mgm can measure through tough times. what they missed was the fact that they could not fill the rooms in time and estimated rooms they did not have. it resulted in a huge miss for the vegas market. in macau, it was in line with everybody else. they are not getting as much share as it would like because the property is ramping up, just not as fast as they wanted it to. it is they don't have the vip clientele like the rest of their

clear -- the rest of their peers . expect more of the same the rest of the year? >> for mgm, they have already managed investors dictations -- investor expectations. last year, they had two major fights and filled a tremendous amount of rooms. they are anticipating they will not be filled in three q. result dragging. overall revenue on the flipside in macau -- that will result in dragging overall revenue. on the flipside, in macau, you don't get that the at the market, which is what you want for their high-end rooms. my: when -- wynn and mgm have

their resorts on the mckay strip. to what the -- the macau strip. iswhat degree cannibalization something investors have to watch? >> the fourth quarter is where we see glaring disjunction. wynn did not see decline until this quarter. we have to see if that is a risk of cannibalization to really call it that. certainly something, a point to look for. ramy: thank you very much. bracing for only modest results when toyota results later on friday.

the carmakers likely to be hit with recent swings in the yen. it is also facing the threat of u.s. tariffs, crippling demand and its biggest market. through what could be in store for toyota. said, this quarter should be reasonably strong. although there is a bit of a hit expected from the yen. it is about to yen's stronger than the dollar compared to a year ago. at the same time, the yen is headed in the right direction now. from the end of march, when it was 1.06, it is now 1.11. that is only good news for the japanese automakers to include it. really, the question is with the u.s. in particular, which is still toyotas biggest market -- toyota's biggest market by a

longshot. demand has been volatile. we had a very good june for the industry overall in the u.s. and then a really smack in the face in july. one of the things that changed is the incentive spending and reigning in of incentives for the second half of the year as people get a bit more -- are forced to scale back on the incentives they can offer through loans because the way the fed is going, higher interest rates, getting more expensive. it remains to be seen if demand is really there. the question over the trade tariffs, how much that helps consumers to spend in june or did not help them in july. toyota has a lot at stake in this trade war. 's mostt for -- the rav4, popular vehicle, is not made in the u.s. it is made in canada. a lot of its that's a lot at

stake there. ramy: -- a lot at stake there. isy: toyota in china, it lagging. what is it strategy to catch up? >> it seems they had gotten more serious recently. one of the things they have done is ramping up production this year. once at the beginning of the air, once at the middle of the year, ending at capacity. they appointed someone in toyota city in japan to oversee both china and asia instead of leaving it to a china-based executive previously. the idea is consolidating china and asia to make it fit better with the belt and road initiative that beijing has going on, the big infrastructure initiative. with the sales of 1.4 million

cars this year, that is an increase over last year. it is on its way to that goal. to put it in perspective, nissan is the leader in china among japanese makers. it already sold 1.4 million cars last year and it is ramping up its sales and production goals. so a lot, a lot of roads to close in with the leaders. haidi: thank you so much for that. loose cannext, how the boj's monetary policy get? why it won't be normalizing anytime soon. this is bloomberg. ♪

♪ haidi: this is daybreak: asia. ramy: as we know, this has been

one of the busiest weeks of the year for global central banks. while the fed state of the course, the boj and the bank of took different moves. we have the scotia bank had of asia.headof of which one do you think is the most consequential? of course, the u.s. fed is an important consideration for the whole world. it was interesting to see the bank of japan policy announcements. next week, we will have the reserve bank of australia. that will be another interesting policy meeting. we still seee boj, the reverberations of that policy, the expansion of the ability for the boj to tolerate

how high that yield curve could go through. in terms of how high and what it means for the bond market, talking about the 1% level for the 30-year jgb, what are your concerns on that? >> i don't really have any concerns. i think it is fairly clear that the central bank will not normalize monetary policy anytime soon. fundamentally, there are no reasons for that. even though they did announce that they will allow bond deals -- bond yields to fluctuate more than before, they did keep the 0% target for the 10-year yield. the bank of japan has a lot of policy credibility. boj, the architect of this says he does not expect yields to ratchet up.

is that just posturing? we have seen a lot of volatility. the boj comes in to tap that down -- to tamp that down. >> i do think volatility will be higher in the coming months and quarters. but in terms of monetary policy, the bank of japan will continue its aggressive monetary easing it for the foreseeable future. but they will intervene only when they think it is necessary. haidi: is there a bit of a disconnect in the sense that they had to make these policy tweaks to address some of the distortions and structural issues with the various asset class markets because of the extraordinary monetary policy? at the same time, we have seen with the intervention, there is only a certain amount of flexibility they will tolerate.

has anything meaningful really changed? >> i don't think so. if you look at inflation, for example, all inflation metrics in japan are 1% down year-over-year. economic growth has been slowing recently. there's no reason for any normalization and monetary conditions. currentwe will see the policy stance to stay in place until at least the end of 2019. chart i wanted to offer a for the big picture. termss where we are at in of the playing field, if you will. 2%, even withthin the bank of japan's inch up.

you are still talking about the story of central-bank policy divergence. it becomes even more divergent if you consider we could still get more rrr cuts from the boc -- the boj. seeing divergence because, in japan, there are no reasons for monetary tightening. it will be interesting to see how this traded dispute will move through this monetary space globally. because of the trade disputes, we have seen risk aversion, we have seen market depreciation across the world against the u.s. dollar. that will bring inflation. tariffs also raise prices. there will be a point when central banks globally will be tightening monetary policy more.

the bank of japan will be the only one staying on hold. these, youou shave know, i guess the triple threat, emerging markets, rising rates, tensions,llar, rising it will become quite difficult for policymakers in emerging to count those forces. >> absolutely. in a stash we are in a situation where interest -- we are in a situation where interest rates are rising. growth is seeing softness. then we have a global debt burden. in the first quarter of this year, global debt burden reached a record high, almost 320% of global gdp. three quarters of that is in corporate's.

-- corporates. aboutrings us worries credit rates for economic growth is slowing. di: don't forget our interactive tv function. that is tv . you can do a deep dive into any of the securities. you can join in on the conversation by sending us instant mencius is -- instant messages. this is bloomberg. ♪

haidi: this is daybreak: asia. ramy: let's do a quick check of the business headlines. 9% in the first quarter as stockholding gains and a fall in bad loan costs made of for a slump in treating. the bank is keeping its full-year target of 7.5. rivals areg and its under pressure. is looking at options for its aircraft leasing unit.

include hongers kong billionaires. value of more than $7 billion as of last year. it has the potential to be among hna's biggest disposals. remorse over to star wars. it is meeting resistance from turner, which paid $275 million for cable rights until 2024. disney intends to launch its streaming service at the end of next year. haidi: we will look at how markets are trading right now in the early friday session. look at the nikkei 225. a little bit of upside, a quarter 1%. we see the recovery for the kospi.

.3%.dney, upside of the dominant u.s. dollar sees weakness across asia stocks and currencies to be expected today. ramy: a mixed picture in asian futures. let's look at the straits times index, down by nearly 1.5%. it's an interesting mix of things as we saw a mixed close in the united states with the dow slightly down but the nasdaq up by almost a quarter. asia.s it for daybreak our market coverage continues with rishaad next. ♪

♪ rishaad: draining away slightly in asia. trade tensions are starting to overshadow earnings growth. wilbur ross threatening more seesfor china as the u.s. evidence of economic change. beijing's is tariffs will be on everyone. apple wins the race to $1 trillion on innovation. steve jobs -- and steve jobs vision. this is "bloomberg markets." ♪