♪ >> tesla jumps as elon musk plots a different route. he might take the company private at $420 a share. >> shares up 11%, his 61 character tweet boosting his fortune over $1 billion. profitsnwealth bank's come to an end amid higher costs and fallout from a money laundering scandal. >> disappointment from disney. despite the incredible's and the avengers, third quarter earnings went off-script.

>> hello from sydney, just after 8:00 a.m. you are watching daybreak australia. two hours away from the opening of the first asian major markets. >> i am ramy inocencio. over the next hour, we will look the action in australia will play into the asia-pacific trading day. it was confident, but whether that is a question of being well placed or misplaced as u.s.-china tensions continue is the question. 0.3%, shy 15 points of a new record high. the nasdaq up similarly here. the big story, especially in the u.s. afternoon trading was tesla. let's talk more about that. tesla, just a fraction of a percent under 11% for the pop. the big news is that it could go private.

elon musk saying he has his funding secured to go private at $420 a share which would value the company at $82 billion. there are a lot of folks out whether they should continue to be shorting that stock. haidi: we will get a lot more on that tesla story. we know elon musk has had his fair share of difficulties in investor relations, to put it that way. take a look at the setup in asia. ramy, unusual situation, where you see optimism in the markets despite this escalation of the china-u.s. trade tensions, a 25% tariff on a further 16 billion of chinese imports. more on that in a moment. we are pretty flat in the early session in new zealand, the kiwi dollar 67.34, the u.s. dollar falling overnight after four sessions again. sydney futures uninspired going into the open. the rba issued a somber

statement when it comes to the state of u.s., global and china growth after keeping rates on hold. watching emerging-market equities, which rose the most in a month, chinese stocks with their biggest gain in about two years. a little stability for dollar-cny, with a report they have been trying to avoid herd trades on the yuan. the bank's first decline in nine years as the lender battles higher lending costs, competition, and deals with the fallout of a money laundering scandal. this was in line with expectations? emily: we were expecting a drop in cash profit. a a lot of moving parts in the result. in addition to the $700 million charge they took settling the

money laundering charges, they have also been selling off businesses. some of this, a a lot of moving parts in the result here. in addition to the regulatory problems, it is getting tougher for banks in general in australia. ramy: what has the ceo said about these results? emily: well, he has said first of all, his statement is in two parts. he again has apologized for what has gone wrong, and says the bank will do better. second, he has pointed to what he sees as good signs of underlying performance. so if you strip everything out, you can talk about some of the core business the banking does relatively well. for example, the bank has been able to increase its net interest margin, a measure of lending profitability, mainly because of the pricing on mortgages, as talked about on many occasions. a move away from investor

mortgages, and that has been a boost. a mixture from the ceo, regret for what has happened before, and trying to focus on the fact that this is a strong underlying business. we are still talking about profit of 9.2 billion here, not to be sniffed at. ramy: that's true. we will see how investors react to that in about two hours, when commonwealth starts trading. thank you very much. to tesla now. elon musk is considering taking the company private, in what would be the largest leveraged buyout in history. it all started with a tweet, in which he stated funding is secured at $420 a share. that drove the stock upwards, before it was briefly halted. that did not stop the momentum, the stock closing up almost 11% but well below musk $420 figure. you can see it, just shy of $380. we are joined by bloomberg tesla 's report -- bloomberg's tesla

reporter, dana hull. most of us were talking about this when it broke. bring us the major headlines. dana: the timing of this is super interesting. earlier this morning,a report in the "financial times" now confirmed that the saudi arabian sovereign wealth fund was taking a stake in tesla. that had everyone excited, shares started moving on that, and elon's tweet seeming to come out of nowhere sent it further. trading was halted, and then we got an internal email musk scent to tesla employees -- sent to tesla employees. he says he wants the company to focus on the long-term vision, and not just quarter to quarter. he also runs a'sx, a privately -- runs spacex, a privately owned company. he says funding is secured, but what does that mean? the saudis, or a lot of other private equity firms? what needs to happen for this to get across the line? haidi: is this a positive for

the progression of the business, in that it removes the scrutiny of financial markets as this company goes through growing pains? dana: if you follow musk closely, he has often lamented about tesla being public and has expressed frustration with being under the microscope constantly. the short sellers betting against the company, and how much easier it is to run spacex, which is privately held. i don't think this runs as a surprise. it is interesting they would do this, given they are still a growth company, and they still need a lot of money to fund their future ambitions, so i would love to know more about what kind of secured funding he has lined up. haidi: thank you so much for that. dana hull with the latest on tesla. joining us now for more analysis, from detroit, the founder and ceo of mainstay capital management, who has been short on tesla for some time.

does this change your perception and outlook for the company? >> good morning. no, this is not change my perception or outlook, and it has not changed my outlook on my short position. morect, we were shorting shares today on the strength of the stock. the biggest question, and it was just mentioned, is the tweet that said funding was secured. the information that came out afterwards, we never heard anything more about how that funding was secured, what ba nks were involved, who are the suitors. usually in a deal like this, we know that or we hear that. this is a very big deal, the largest in history. haidi: in the absence of details, do you think it would be a good move for the company? dana touched on one of the key points, that this is very much a growth company at this stage it is an. it needs funding. does this seem to be a smart move, in order to remove some of that scrutiny and distraction

from facing financial markets had investors? david: we can certainly see why elon musk would want to do this. he's tired of being harassed by short sellers, tired of being harassed by the naysayers, tired of the last couple quarterly earnings calls. two calls ago, had a very bad experience. he wants to be able to execute his dream, his passion, have people along for the ride that support him. as a private company, he can do that in a much better way, and execute a long-term vision rather than worry about reporting quarter to quarter, some of the arbitrary production goals and everything that he's doing to satisfy those, either the shareholders, investors, market watchers, people within the company. you can see why elon musk would rather be running a private company than a public company. ramy: david, i want to show our

viewers this terminal here, looking at short interest. meantime, shares are up. the blue line is the number of shares borrowed to short the stock, falling ever since may. what would it take for you to change your mind? you doubled down on shorting, as you said. isid: i think that this somewhat of a bizarre announcement today. the way that it came about, i think, if we do not find out how this funding is secured very soon, that will fall under the scrutiny of regulators. a lot of there are ways a deal like this can go bad. a lot of approvals. to get all the way through all the boxes that need to be checked. what would it take for me to change my outlook? i think the concern is, we have a company right now with serious liquidity issues. this is a way the company gets

bought out, but they still have funding needs going forward, and you know, once they get to a point, even if they get to sustained profitability, we have all these other carmakers around the world bringing e.v. models to market, that have been building cars for a century or decades, competing with tesla. they just do not own the future of e.v., the future of the taunus -- autonomous. the vision elon musk has, to save the planet, is admirable, but i think there is too much hype, too much of a story in the stock. when you look at the realities, financials and fundamentals of the company, it doesn't add up. ramy: there was a wildcard thrown into the conversation today with the saudi arabia investment fund. $2 billion, their own stake in the company.

to what degree do you think they might have a role to play in what is happening with these developments? david: that was the early speculation. the "ft" article came out and elon musk's tweet just hours later. maybe there was a saudi arabian sovereign wealth fund. the money is there. there is private equity money looking for a home, a lot of money out there lot of paper to be issued. so there is the demand, let's say, for deals, but when we look for lbo's, we look for companies, typically looking for more cash-rich than cash-start companies. this is typically not the company that does this, but let's see. we just don't have any details. if we know who the suitor was, or what banks were involved, how is that funding secured? what does that statement mean?

that is a tell-all for how serious this is. right now, sounds like we have more of a statement of intent, a plan to make a plan. not really a deal where we know what's going to happen. ramy: that will drop shortly, and we will be bringing that to you as it develops. david kudla, doubling down on his shorts of the stock. let's get the first word news now. n hasca: washingto confirmed it will begin imposing 25% duties on another $16 billion of chinese imports in the next two weeks. customs will begin collecting the duties on 279 product lines as of august 23. the u.s. levied similar duties 6,$34 billion on july prompting retaliation from beijing. china has vowed to strike back

to all dollar on the latest action. china is said to have made another move to stabilize the yuan, urging banks to avoid so-called herd a heavier. the pboc told lenders it has plenty of tolls to keep the yuan flexible in both directions. the meeting came just days after the pboc made shorting the yuan more costly, and said they would not use it as a weapon in the trade war. the trump administration says it intends to reimpose sanctions on the arabian oil industry in november -- iranian oil industry in november. john bolton told fox any potential waivers would be few and far between. renewed sanctions are already having an effect. daimler is freezing operations in iran. government projections say the australian population has broken 25 million. bureau of statistics says the

milestone was reached just after 2:00 p.m. sydney time. the number of aussies has doubled since 1970, sixfold since 1901. global news 24 hours a day, on air and on twitter powered by more than 2700 journalists and analysts in over 120 countries. i am jessica summers. this is bloomberg. haidi: thank you for that. still ahead, will turkey's economic troubles force it to take desperate measures? a global analyst talks about us the risks of strained ties from the u.s. ramy: the s&p 500 hits it highest level since january despite rising trade tensions. we will dig into what is driving the gains with dennis gartman. this is bloomberg. ♪

haidi: we are counting down to the open in sydney. this is how futures are looking, pretty flat. on holding the decision interest rates at 1.5%, a record low for now. a pretty sobering delivery of the outlook for china growth, as well as global growth from the rba yesterday. looking at a pretty insipid session in sydney, although elsewhere we look at a mixed to positive open in asia. ramy: i'm ramy inocencio in new york. you are watching "daybreak australia." looking at what's happening with the stocks here, interestingly, they were pretty much up because of what was happening in terms of earnings, as well as with tesla there. i believe we will talk more about that, in addition to

getting to our guest. right now, why don't we go ahead to our biz flash? we will do a quick check of the latest business flash headlines. softbank's vision fund is leading an investment of $3 billion into the food delivery operation owned by alibaba. alibaba plans to merge with in-house unit kobe, which connects restaurants to the internet. snapchat's parent jumped in late trade, despite the first-ever quarterly drop in users. investors look past that and welcomed sales that topped expectations and the news that a saudi billionaire, prince al a prince, has taken a stake.

a controversial redesign of the app is still hindering growth. zillow groupmy: tumbled after missing even the lowest analyst estimates. second-quarter results raised fresh questions about its foray into buying and selling homes. on monday, zillow announced it is acquiring mortgage lenders of america to streamline sales of homes the company owns and you create a new revenue source. >> here we are today with this huge brand, 150 million people coming to our site every month. a lot of them want a mortgage. we make money selling advertising of mortgage lenders, but we think we can make a lot more money if we are selling a home we own, with a mortgage originated by us. ramy: plenty to come on "daybreak australia." this is bloomberg. ♪

haidi: heidi -- haidi stroud-watts in sydney. ramy: ramy inocencio in new york. stocks climbing to striking optimismof records, on growth can continue even as the world's largest economy square off in a trade skirmish. dennis gartman, writer and publisher of the gartman letter, joins us from virginia beach, virginia. let's throw up a bloomberg chart to kick this off. yesterday 500 is near a record high, and at the same time the vix is its lowest since the start of this year, with the backdrop of trade tensions. what's going on? haidi: quite honest -- dennis: quite honestly, you have me. i am one of the people who thought trade tensions would be deleterious to the market, but it is still a bull market, and

trade tensions will matter when they matter. i have been at this for 40-some years, and if i learned anything, it is that things don't matter until they actually do. there will be discussion of trade again, the dow down 500 points, then it becomes a problem. until then, it doesn't matter until it matters. ramy: we got some clarity on continued tarrifs between the u.s. and china, finalizing details on $16 billion of imports from china. to what degree will this clarity drive some screws into this? a smaller number than people anticipated, so it's probably not detrimental at all. any time you can get clarity, clarity helps.markets hate confusion . as i like to say, confusion breeds contempt. this is a bit of clarification, on a smaller number than i thought was likely, so it is probably going to be beneficial, not detrimental. haidi: dennis, we are getting

some of these incremental, and china has said they will retaliate until they run out of u.s. imports to put tariffs on. but i'm wondering, what you said earlier, it does not matter until it matters. with u.s. stocks close to record highs, pretty sanguine about this whole thing, when it starts mattering, will it be too late? are we setting up for something ugly? dennis: there shall be a bear market one of these days. them on the chairman of university of akron's endowment committee and i always say, come the bear market, we have to be careful, but the bear market never seems to come. someday there will be some terribly untoward decision as far as trade. somebody will have stepped over the line. the dow will open 500 lower. that is when it matters. until then, the market seems

able to shrug its shoulders and move to new highs. if i learned everything in 40 years, a market that keeps making new highs has a propensity to make new highs again. eventually a bear market will begin. it will matter when it matters. until then, it is hard to believe it doesn't matter. haidi: dennis, the markets today were distracted away from trade, watching the elon musk show, if you will. [laughter] what are your thoughts on this? is it a smart move, removing the financial market scrutiny? does the company need the money, the financing, given it is still a growth company? dennis: where is he going to get the financing? who is going to finance a company that is cash flow negative, has not been able to meet any objectives the last five or six years, with a ceo who has his attention both on his space project and his flamethrowers and his automobiles. this is not going to happen. i think this is just a game, to put the fear of god into the

shorts once again, which clearly he did. do i think this will come to fruition? i doubt it, and obviously the market doesn't believe it, either, because if it did, on takeovers or announcements, the initial price goes to 90%, 95% of the offer. we are a long distance away. i think this is just a way to scare away the shorts i don't think this will happen at all. but if it is elon musk and you bet against him, it is a bad bet. haidi: appreciate your view. dennis gartman, gartman letter editor and publisher. coming up, we look at the challenges,. challenges for aussie lenders after a series of scandals and negative headlines. david ellis joins us in sydney next. this is bloomberg. ♪

haidi: it is 8:30 a.m. here in sydney, where markets open for trading and 90 minutes time. -- in 90 minutes time. record low .5% rate. pretty down forecast of the global economy. things going on between the u.s. and china which escalated overnight with the additional on $16 billion worth of chinese goods. it is 11 degrees. you're looking on the iconic sydney opera house. i am haidi lun in sydney. in new am ramy inocencio york, where it is 6:30 p.m., and you're watching "daybreak australia." jessica summers.

jessica: tesla shares and bonds soared after elon musk said he would consider taking the company private. the initial announcement came via twitter, saying "funding secured." that would value tesla at -- reachare price failed to $420,000. that would be the largest leveraged buyout in history. speculation is rising that turkey will need a bailout from the imf, despite the lira recovering from monday's plunge. the currency rose on the news that officials are heading to washington for talks about a jailed american pastor and the sanctions imposed in response. there has been nothing from the government and central bank. investors fear president erdogan is blocking a rate rise. big banks are the winners from last year's republican tax cuts,

staff not so much. 23 firms saved on average $388 million each in the first half. the groups eliminated 3200 jobs. lending rose almost 1% in the period. a year earlier, before the tax cut, the growth rate was twice back. facial recognition security will inused in the tokyo olympics 2020. it would be the first time such a system will be employed at the games. the technology will be installed at all venues. withms to eliminate entry forged id and reduce congestion. the technology will be customized to monitor every accredited person including athletes, officials, staff, and media. global news, 24 hours a day, on twitter, inictoc on more than 120 countries, i am jessica summers. this is bloomberg. thanks for that.

getting lines crossing the bloomberg. earnings news, one to watch for the singapore session. net income coming in at -- second quarter revenue coming in $1.54 billion. we know, in addition to the singaporean market, which has come under pressure from another round of supplies property curbs by the government, they also have more assets and other mixed-use assets in the likes of china as well. we continue to watch out for some of their forecast statement coming through today, but one to watch as that stock trades in singapore today. let's get more on what we should be watching as trading gets underway in asia with adam haigh, here with us. chinese authorities moving to stabilize the yuan. and the like.nks are we expecting it to have an effect? adam: it did have an effect in

the immediate knee-jerk reaction you get when these policy events happen in china. you had a rally against the dollar overnight. we have kind of held those gains in the offshore market this morning. look to see what happens offshore when we get the trading started later, but the language was put into grilli -- was particularly interesting. trying to prevent herd behavior, so it is clearly an effort to continue this kind of, you know, series of policy steps to try and stabilize theyuan, and what we are hearing -- the yuan, and what we are hearing from people in the market is they want to smooth things out. incrementally, you would expect this to kind of play into that. officials saying cross-border capital flows are balanced. but we aresay that, still not seeing any evidence of pronounced and heavy capital outflows that we have seen in previous periods of turmoil in china, so that is crucial.

we had a decent rally in the shanghai equity market yesterday. looking likeina they will get off to a good start today as well, so incrementally, a stabilization sentiment from the authorities here. difficult on the long-term basis though still. ramy: in australia, with the rba yesterday, we saw the central bank change its language in the policy statements. to what degree has this done to change expectations for when the rba might eventually raise interest rates? adam: let's be clear here. the rba is only knowledge and the facts, and the facts -- acknowledging the facts. globally, the economic environment is one of the huge impetus to rba inputs, as much as they would like to only worry about domestic things.

in terms of what it has done for people with interest rate expectations, we are still in this record period of keeping low rates. it barely budged on the statement and commentary yesterday, and it is looking firstugust 2019 as the meeting where you would likely get a hike by us. still neutral from the rba's point of view, although the market thinks the next move is a hike, not a cut, but still, that move is at least 12 months away if not more. ramy: adam haigh. don't forget to check out our gtv library for some of the chart you saw him pull up on gtv on the bloomberg terminal. now and to the movies disney is having a record-breaking summer at the box office with the likes of "incredible 2" as well as the movie, but itrs"

has not translated to strong earnings. chris palmeri, why did disney's earnings actually disappointed this time? chris: they took a $100 million right off onto movies that have not even been -- on two movies that have not even been released. third sequels the of "planes." people were not putting these in their calculations. ramy: bob iger touched on how he hopes to put his cash to work during the conference call as well. that figure listen to this. also has significant state in sky, the most successful paid television company in europe. the addition of these valuable assets will enhance our position as a global entertainment company with excellent businesses in tn emerging markets around the world. ramy: let's boil down what he

said. what does it mean for the deal going forward? chris: this is classic iger. he said he was very excited about the fox deal and he said he will pump up production for things like fox searchlight, the oscar-winning film unit. he will produce a lot more of the film content for fx. they will have more egotours tours. -- eco- shanghai and hong kong were up. that has been a little bit of a change. hong kong was down a bit after shanghai opened. it was taking a lot of the chinese tourists there. on the good news out of the parks business in asia which has been strong overall. haidi: always appreciate your time for us, chris palmeri, with

us on disney. closer to home, and the bank of australia's profit run is over, after they paid the price for a series of scandals and missteps. cash profit fell to 6.8 5 billion u.s. dollars in the 12 months ending -- it was always going to be a messy report, but used her about what you would hope would be one time elements, and it was actually positive for you guys? david: when you strip out those $10off profit around billion, i was expecting $9.9 billion. slightly better off from a fundamental perspective, so there are some positives. obviously, as you suggested, it has been a horrible year for the bank. there are a number of transactions expected to occur in this financial year, so it

will be a tough year for the new senior management. the underlying franchise is strong. we got the highest market share in a lot of consumer sectors in australia. i was pleased to see that debts were low. that was a good outcome. onlynterest margins declined two basis points in the second half, which again was a good outcome, considering the focus on higher earning costs. haidi: i want to throw up the stock reaction. cba has done the worst out of the big four. just the reputational damage, do you think? that really got it the hardest? david: it has been 12 months since the announcement in august last year. there has been a series of issues and scandals and problems

they experienced. they trade at a premium, and that premium is still there, but it has certainly shrunk considerably, and it may take a number of years before the bank can justify that sort of longer-term premium. ramy: looking ahead in terms of what needs to happen with some of those deals, the spinoff of the wealth management unit, what needs to happen for the timing here to try to lift sentiment and investor confidence? there are two big deals underway. insurancehe life business, which is expected to complete before this calendar year, and before the end of next year. there is a lot to occur in that regard.

tohink what is really going get the investor sentiment back is looking at underlying momentum in the business, particularly lending growth and deposit growth. lendinginancially, growth was below system. deposit growth was below system. in the homeboth lending and business landing. the new senior management really do need to kickstart the business momentum and get that going again. without damaging the net interest margins, it is still a performance in loan losses. months at to take 12 least. but the fundamentals are there. i expect the new senior management should be able to deliver on getting back the premiums, the share price premium.

it is helped by the dividend. the dividend announced, the final dividend, was modestly higher than the market was expecting, and the bank is paying about a 6% for the dividend, so it is attractive from an income perspective. move tow about the embed supervisors in the big four? to what extent do you think that will raise confidence? david: we will have to wait and see of course. thata little bit skeptical it will actually make any difference. obviously, with all the scandals and problems that the banks, the banks and was managers have experienced in australia, the regulators have obviously got to be seen to be doing something, and this is on the face of it, it is a good

idea. whether it is effective or not, i am not so sure, and we will have to wait and see. it will be interesting in a few years time, if there is still a number of scandals and problems and issues, regulatory issues in anks, after they have embedded their own staff. that will be an interesting outcome for the government at the time. ramy: it is interesting that scott morrison said they will come down on them like a ton of bricks if they do something wrong. thank you, david ellis, morningstar head of australian research. saving the lira. potentially turkey resorting to capital controls as its currency crisis worsens. this is bloomberg. ♪

haidi: i am haidi stroud-watts in sydney. ramy: i am ramy inocencio in new

york, and you are watching "daybreak australia." we've got breaking news right now coming across the bloomberg terminal. numbers, first quarter net income is eight to $31.5 it $1.5 coming -- million. $831.5 million dollars. they will begin imposing 25% duties on an additional $16 billion of chinese goods in two weeks. for more, let's bring in reader iba, who joins us from austin, texas. it seems in the whole scheme of things, $250 billion, that the $16 billion -- we knew it was coming. to what extent does this move the needle?

>> the $16 billion was completely expected, part of the tariff package under the section 301 terrace that were very focused on china's made in 2020 campaign, so focused on a lot of chinese industrial goods. the white house has been clear it would follow through with that, so this was just a matter of timing. the bigger question of course is with the white house formalizing its threat to impose 25%, up ariffs andt threatening to raise that even further, that is where we are in clear trade war territory, which of course, china has responded saying they will respond billion worth $16 of tariffs. the white house would like to think that would bring china to

the negotiating table. if we see a negotiation, it will be a limited one and driven by domestic political interest as the white house is raising those costs in november, but you know, beyond that, you have very big structural constraints around the dialogue, and during the competition, which china is bracing for the worst here in terms of that trade war threat. ramy: the battlefield has been mostly along goods lines. smu global came out with something saying we could see the surface sector start to get -- service sector start to get hit. when do you think this might happen? reva: this is one of the big cards we could see come into play any moment. there is a big focus on big chinese tech firms. zte,ve seen companies like under, already

investigation by the u.s.. if the u.s. wanted to broaden its scrutiny to include services by the chinese tech companies, that would be a declaration of war in an already very intense climate. when you we are looking at back hard to play, inevitably, we will see something like that come down the road. we are looking at potential investment restrictions by the u.s.. for now, the administration is focused on relying on congress to control some of that, but it could use more unilateral executive action to strengthen some of those restrictions, but there are a lot of ways the friction could escalate well beyond the good santarus we have thus far.d tariffs is a fastre escalating trade war. does this kind of play into the broader weakness for emerging markets in general?

we are talking about the basket case scenario you look at when you look at turkish assets at the moment. is there a sense of contagion going on? reva: not so much contagion, but certainly a number of countries are dealing with similar effects here of a strengthening dollar. we see that as a function of the fed's tightening cycle, which continues on course. has been weakening against the dollar for some time and trade tensions on the ad to that flight. you look at a country like turkey, and the lira has depreciated in the past year. there are a lot of external factors that turkey really cannot control when it comes to the dollar strengthening the effect on the lira, when it comes to higher energy prices, driven in part by the u.s. sanctions policy on iran. that is then combining with a lot more political friction to come between the u.s. and turkey , where this controversy over

the american pastor is small fry compared to the level of scrutiny we are about to see come down on turkey from the u.s. treasury. the iran sanctions, when they going to full effect, including the second wave, and turkey is expected to be one of the biggest violators of that, keeping a close eye on turkish banks will be imperative because they already have a lot of debt repayments coming due in the coming year, and that sanctions pressure coming from the united states is only going to compound that. haidi: i appreciate you coming joining us from austin, texas. you can get around up of the stories you need to know to get your day going in today's edition of "daybreak." lambert subscribers -- bloomberg subscribers can go today be -- to dayb . you can get news on the industries and assets you care about. this is bloomberg. ♪ his is bloomberg. ♪

ramy: welcome back. i'm ramy inocencio in new york. haidi: i am in sydney, you are watching "daybreak australia." a quick check of the latest business flash headlines. 6.1%,an sales strength missing the lowest estimate. that prompted the founder to accuse the ceo and the board of failures. papa john's is trying to distance itself from schneider after he admitted to using a racial slur. ramy: china tower makes its debut after the world's biggest ipo in the last two years, but one of the least popular among retail investors. it raised 6.9 billion u.s. dollars, pricing at the low end. cancer drug developer -- arrived in hong kong through a secondary listing. its shares have been more than

sevenfold since listing in 2016. haidi: china struggling hna group said to be in advanced talks to sell a majority stake. a deal could raise as much as $2 billion. hna has already shared more than $17 billion worth of assets this year that tries to reduce one of the biggest corporate debt loads in china. ramy: it has been a heck of a ride this year. months,tle over seven singapore's largest taxi company has reversed course from second worst-performing stock to the best. competition from passengers has eased after uber's retreat from southeast asia. o has risenr strongly, making it the best-performing stock on the index, which has fallen 2%. haidi: that is just about it for "daybreak australia" this

morning. i will be sticking around with ramy over the next two hours for "daybreak asia." we will be speaking to the capital land president and the group ceo. that is first on bloomberg conversation. trying to get an indication of the business between emerging markets and existing markets as well as the impact. we will talk about these trade war is -- the impact of these trade war's on the business as well. ramy: how they have been impacting the hong kong market. we will be speaking with the global tech and telecommunications leader. hong kong's ipo quarter has been the best ever since 2010, but then again, after the ipo, they actually have not been doing all that well. we will take a look to see what is happening. that is it from "daybreak australia." we will get all the action in "daybreak asia," next. haidi stroud-watts coming back

on the other side of this. this is bloomberg. ♪ is bloomberg. ♪ 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: it is 9:00 a.m. here in sydney. i am haidi stroud-watts. welcome to "daybreak asia." top stories this wednesday. tesla dropped. elon musk may take the company private at $420 per share. character tweet boosting his personal fortune by more than $1 billion. ramy: from bloomberg's global headquarters, i am ramy inocencio in new york, where it is past 7:00 p.m. on tuesday. washington confirms tariffs on an additional six teams billion dollars of chinese goods. beijing has vowed to respond in kind. at the movies, disappointment from disney. despite the success of incredible's