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. >> u.s. stocks hold to four-day advances. china hits back at tariffs and the u.s. is sanctioning russia. resultscentury fox, validate disney's decision. takeon musk talk to some about investment in going private. but negotiations stalled over super voting rights and control. faces a ratepines decision later. not whether to hike but by how much. is just from sydney it

a.m.8 >> good morning and good evening to you. just past six in new york. you, at to tell back-and-forth day with china it has already been hit hard on stocks and currency. wasn't u.s. today it anywhere near that dramatic but stocks couldn't get out of their own way. after thencertainty tit-for-tat overnight continued between the u.s. and china on tariffs. you can see that we had minor losses. the market days pretty much flat. a little on the red on the dow jones and the s&p 500. the s&p 500 is just about one percentage point within a all-time record. techq delayed a bit by stocks. bonds are interesting today.

at auction a $26 billion auction of 10-year treasury notes. uncertainty over trade because this has something to do with it. andr certain -- uncertainty a bit of a rally here. 3/16 on the 10-year note. the yield at 2.96% and people waiting for two re--- two reach 3%. that was partly responsible for that ricochet section we saw for the bloomberg dollar index as well. we had gains and we ended up with him of those lows there. taking a look at trading in new zealand getting underweight we are getting reaction, although not much other than the weakness in the kiwi dollar. keeping rates on hold as all the feet economist had expected the record low 1.75% there. a downcast assessment there from

the central bank. suggesting the forecast has been lowered and the slump in business. pushing out expectations for any move upward by a further year. a very dovish statement out. taking a look at the future session in australia. the aussie dollar holding pretty city after seeing gains. sticking with china we will continue to watch that. one of the reasons we saw the decline in u.s. work its after earlier gains -- markets after the the earlier gains is the buying back of the 25% tariffs responding to washington's move in the previous day. we saw it yesterday. chinese stocks really seeing the rebound earlier this week could be hung onto. looking at number commodities a bit of downside although eight next picture -- a mixed picture.

let's go to first word news with jenna dagenhart. jenna: thank you. as you just touched on china is imposing 25% tariffs on an additional $16 billion worth of u.s. imports starting august 23. it matches washington's latest move and widens the trade were between the two top economies. the revised chinese list covers items read -- items ranging from coal to medical to coal. there edging toward the point of no return. with the u.s. waging a trade were on several months, there's growing speculation that president trump could act to weaken the dollar. jp morgan economist says it is not the banks biggest case scenario but it can't dismiss the idea of a more individualist -- more policy. america'sollar once

competitive edge. the pound fell to the lowest in more than nine months against the euro amidst growing concern that the u.k. could end up leaving the european union with no deal on future economic ties. sterling dropped and weakened against all of the peers. the weakness is a clear sign that markets are starting august on the risks of a no deal brexit. this year's slump in cryptocurrencies has hit new depths. a run a selloff in digital clients of all sizes cut the market now you -- market value to about $230 billion. digital assets have lost about excited billion dollars crypto mania peaked in generate. 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'm jenna dagenhart. this is bloomberg.

kathleen: thanks so much. a mixed u.s. close. a four-day rally of the s&p 500 hit a speed bump. the nasdaq rose for a seventh day. 21st century fox reached highest estimates after the bell. let's start with the regular session. that in itself is a story. su: it really is. we saw two different moves. we saw stocks struggle. let's go right to the market snapshot. as higher for tech. the story is oil which is down about 4% at the lowest. you're looking at after hours trading. size of the moves here are very interesting. tesla motors had talks at some point with softbank. , the rent-a-car company missing estimates and just getting pummeled.

this is a much bigger story of how the economy, u.s. consumers running away from rent-a-car's. a lot more car sharing going on at the whole industry getting hit hard. asll not out of the woods analysts are saying. match group soaring. this is a company that has a lot of dating websites including tender. tinder is the main weight many people meet. the company is just going to investors in terms of signing up new subscribers. let's go into the bloomberg. more on tesla. bears it burned. the stock was so heavily shorted that even when it rebounds a bit it is hurting some of those who are taking positions against it. has come outws that the board confirmed it new last week about the proposal to take electric carmaker private

and it adds credence to the idea that it was more than a spur of the moment when -- spur of the moment women. -- whim. a lot more will be coming out on that. at this point we saw the stock is down in the regular session. it is ill a big question about the future direction and capitalization. and a lot of speculation about what will happen there. oil took a big hit. some of us concerned about tariffs developments. plans to impose them on gasoline and other fuel. a lot of questions now. turmoil in the gasoline market. economists are saying it will not have an impact short-term but on the u.s. it will mean companies that have china alliances will offer and consumers are going to get hit hard. gasoline -- again you are

looking at extended our trade. , oil down 4% as 4% as well. they are still down in extended trading. that indicates there is concern. usually we see a rebound after a sharp drop here in let's go into the bloomberg one more time. this is the rising tide. u.s. petroleum products to china are on the rise. we sent significant products out there. the fact that they could get ed.ed or terrorist -- tarriff those who wager on the commodity itself, look at the long-term victor of oil and you can he and oil chart if we can throw it up there. the direction that oil has been this week alone. it has been a wild ride. dropping significantly on the latest round of tariffs. it really is a major concern. we have mentioned a lot of oil ist's -- oil bets because it to hard to call what is going on

with the trade tit-for-tat. after the bell it was all about fox and murdoch empire beating the street. su: forcing a little bit of weakness in the extended hours. we can put up that chart but it was a win on all accounts in terms of the numbers. they helped push earnings past wall street's estimates and as kathleen said, that validates a planned by walt disney to acquire the business or they came in at $.57 per share and beat the straight. a bigger chart of how the company has performed this year. 18% last quarter. that handily beat the estimate of 7.5 billion and with the disney deal looming, investors are not trading as much on ox results. you can see the chart is really trading on the big media that'll -- media battle as who will emerge as the big player. a big win for fox.

thank you so much. su keenan with all that wall street action overnight. still ahead we will take a look at policy decisions and how they are playing out in the market. up next, as the trade for undermining xi jinping leadership. this is bloomberg. ♪

haidi: we are counting down to the sydney open just as futures are shaping up going into that thursday's session. he unchanged as we look at a beautiful reign of the sydney opera house. we are watching out for the china inflation numbers looking to take up from july. not strongly enough. that is anticipated to show any kind of protection and the

burgeoning trade were. i was just going to say i think that unchanged opening it built in the aussie market is echoing what we saw on wall street today. kathleen, we talk about that evan flow of how much the -- the tradesions were tensions and today we see more of an impact. we had the return of the fire from beijing with cars, medical instruments among these u.s. products to be hit right china's latest retaliation. that $16 billion announced by washington and swiftly returned by beijing. 25% duties for $16 billion worth of imports. we're looking ahead to september when the u.s. is scheduled to slap duties on more s -- on more u.s. goods. gordon, i want to talk about the

leadership in just a moment. we note that it has got a short runway because of the structural nature of the u.s. versus chinese economy. what else can china do once they run out of u.s. imports to penalize? gordon: they've been talking about going after u.s. companies in china. yesterday you had an extraordinary article in people's daily which was essentially extortion on apple. saying if apple wants to continue to make money in china it has got to share more with the chinese people and wouldn't it be a shame if there were -- if apple or the target of nationalist anger from people. clearly they are thinking about the weak links and they're looking at u.s. companies. this is very short-term thinking because the one thing that we have heard from chinese officials in these reports from the south china running post over the last several months is that chinese officials are concerned that if xi jinping

goes after u.s. companies it will have a negative effect on foreign in the very near future. i don't think this is a good strategy for beijing. haidi: i'm wondering whether the rise of nationalism as we have seen against the likes of south korean companies and japanese countries from time to time might be the next logical move. one of the things we have talked about is how the summer of discontent. he is battling a plunge in inequities in the currency massivelending within a attempt, the vaccine scandal, a lot of criticism being heaped. that infamous essay, is he politically vulnerable at this point? gordon: everyone says that he isn't, but if you go back six weeks, no one was talking about xi jinping and hot water. the problem is when you are the absolute leader and you have taken responsibility for everything, when things don't go well, there is no body else to

blame. he has disadvantaged a number of important layers in the chinese political system over the last 5.5 years. these guys are starting to say now we can get back. you have a leader who is overreaching and things are not going well. it is a very difficult story for xi jinping. i think if you go six months from now, he could very well be in the hot water people talk about. haidi: gordon, you have a leader in the u.s. looking at midterms and wanting wins out of that. and increased vulnerability in the chinese leader. what are the chances of having a policy misstep or and overstep in the way that this trade war plays out? gordon: i think it is virtually inevitable that both sides will overstep. from the u.s. perspective, there are critical issues. we talk about tariffs and trade worth, but really these tariffs are meant to be a remedy for the theft of hundreds of billions of

dollars in u.s. intellectual property each year. something has to be done. if it is not tariffs it can be something even more drastic. from the u.s. point of view, we feel we have our backs against the wall. from china's point of view, the threat against apple shows desperation on the part of xi jinping so it is not a good story for china. mistakes the room for -- there's not much room for it. haidi: in fact, it seems that donald trump if anything, he is not getting worried about this g. poker player.od you look at your hand, you are not sure -- we know what each side has but he keeps doubling down. do the chinese expect him to back down? people inthink most chinese policy circles are really surprised at how much president trump has pursued this . when he was running as a candidate and even after he

was elected, there was a feeling in beijing that they could manage trump. right now, i don't think any chinese policymaker -- i don't think any chinese political leader thinks that. it is not just eating unpredictable. the things he have done have disadvantaged china. is a change of four decades of american policy. kathleen: what's the old saying. whom the gods would destroy first they would elevate. it seems like xi jinping was the god who made himself to print leader. how ironic that months later, the trade war started by donald trump, that his leadership is the one being questioned more than donald trump's. midterm elections are not done and there is no guarantee that trump will suffer there. gordon: he very well may suffer. the party of the president normally suffers in the first midterm election. clearly the republicans will lose seats unless something dramatic happens. we have a regular political system. it has rules. people follow rules. in china, they don't have rules

because xi jinping has de-institutionalized the communist party of the last six years. that is now going to work to his disadvantage. kathleen: how big of a problem is it for him that the currency has weakened so much? we are talking about the stock market being so weak. the things he is supposed to guarantee, a stable currency and growing economy. gordon: you have a currency which will break through seven. if you talk to people at the beginning of the year, people would have said you were crazy. you have a stock market, the worst performing indices in the world are now in china. the shanghai composite. when you look at the shenzhen they are even worse day-to-day in recent months. right now, xi jinping is going to be blamed for a lot of this. you can see how fragile the chinese economy is it it is not growing at the 6.7% rate. it is probably growing around 3%, which means -- we are growing faster than the chinese. you wrote at length on

the coming collapse of china. a lot of people have been wrong so far calling the decline of china. is -- in terms of the pressure pot forming at the moment. you have economic slowdown, potential impact of the trade war and an attempt to restructure the very economy. is some kind of moment coming? gordon: the head of the central bank last october publicly said in the extraordinary comment that china, that wasn't careful about debt accumulation was going to have a minsky moment. it's one thing for gordon chang to say something like that but it's another for a senior government official to say it. if you look at the debt accumulation in china, some people are talking about eight a -- about eight debt to gdp

ratio, china can it through because it controls all the players. the problem is there are so many of problems occurring at the same time including 100,000 people losing money in those peer-to-peer lending platforms. believe: it's hard it xi jinping doesn't come up with something they can do to head this off. who should we be waiting to hear from? so behind the scenes could be key to preventing a fall over the cliff? gordon: it's only xi jinping right now. he is the one who has been calling the tune. the thing i am worried about about going off the cliff is not just economics but china lashing out. we hear a lot more about taiwan. we hear a lot more about geopolitical issues. i'm not saying xi jinping is going to try to divert people's attention because of that, but nonetheless you see a little bit on these two tracks, the economy and geopolitics. they're going and disturbing

directions at the same time. it would be more fun and exciting to watch if it weren't so damaging. thanks for joining us. we thank you for joining us today. you can get a roundup of the stories you need to know to get your day going in today's edition of a break. bloomberg subscribers can go on terminals and you can customize a setting so you only get news on the industries and assets you care about. check it out. this is bloomberg. ♪

kathleen: kathleen hays in new york to redo watching daybreak australia. for a quick check of the latest business flash headed -- headlines. samsung has unveiled an anonymous plan. money will go into r and d at artificial intelligence. three quarters of the spending -- for in korea, a

president moon. insurerhina's biggest is said to be weighing a big business. sounding out the chinese government and financing office with banks -- financing options with banks. prudential's asian operations could be valued at about $51 billion. >> less than 12% of asian households own mutual fund type products. we have one of the leading platforms. 13% for the first half of the year. good progress. we are actually -- as investors we're bullish on asia. the $2 billion transaction sees a 30% holding from hna capital arm. it is one of oryx biggest deals.

the third biggest by size. >> we see it as a 7030 split being a stable long-term shareable. hna have repeatedly said in on the earnings call i repeated that they have no desire or interest to sell a controlling interest in avolon. they say it as a court long-term strategic holding of the group. haidi: coming up next, is risk aversion rising? how trade tensions and geopolitical uncertainties are weighing on market sentiments. this is bloomberg. ♪

haidi: it's 8:30 a.m. here in sydney. markets open in just 90 minutes. looking pretty uninspired at this date. a beautiful morning here in sydney. looking at the upper house right there. -- the opera house. focusing on chinese inflation numbers and expecting to see a little bit of a pickup here it not enough to dissuade the pboc for moving in to support the economy giving that we have yet more shots iron. i'm haidi in sydney. kathleen: you're watching daybreak australia. let's get right to first word news with jenna dagenhart. jenna: thank you kathleen.

a possible buyout of tesla. the wall street journal says regulators want to know if a message was factual. bloomberg has been told that must talk to last year. sources say negotiations told went musk proposed taking disproportionate control. the philippines faces eight rate decision thursday. that person is not whether to hike but by how much. a booming economy facing pressure on the peso is a basis according to a bloomberg survey. emerging markets try to curb the fallout from rising u.s. rates. you can follow your bloomberg as it happens. get commentary and analysis from bloomberg extra editors. saudi arabia threatening more pressure on canada for criticism of women's rights activists.

the next retaliatory apps could affect investment flows between the two countries. saudis central bank and pension funds have begun selling canadian assets. canadian stocks and bonds were little changed. >> canada will always a stand up for our workers and companies. when he to make sure we're protecting canadian interest in any situation. we continue to engage with the in government of saudi arabia. the at minister of foreign affairs had a long conversation with the foreign minister. diplomatic talks continued. on newshe ruble fell that the u.s. will sanction russia. but take affect around the 22nd of this month. l seriously ill. agent.ful russian-made

the kremlin denies any involvement. global news 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'm jenna dagenhart. this is bloomberg. haidi: thank you. let's get you a quick update on markets as the thursday morning situation gets underway. just getting underway. keeping rates on hold. bit when ittle comes to kiwi stocks but the decline we will talk about in just a moment. forlly in the trade numbers the next leg up. let's get more on what we should be watching as trading gets underway in asia. you're watching the kiwi dollar. >> reasonably big move for the

kiwi. a lot of meetings where there hasn't been much action. they have kept rates on hold but the key message was that moving back of the first rate hike expectation. almost a year after predicting back in may. i think the things that are stacking up against the new zealand economy are putting serious pressure on the kiwi and that has been bringing in further shorts into the trade. people putting further pressure on it. talking about global inflation pressure starting to rise. we are hearing about a lot more and the inflationary risks. the market perhaps isn't pricing yet. certainly this morning pretty poor performance for the kiwi. you've been speaking

to a big pension fund that is dialing back risk exposure and trimming docs. what is their concern? this is one of the big pension funds down here. they look after pensions for a lot of australian construction workers. they have a very good run of it. it done 11% over the last 12 months in their growth fund which outperformed the majority of the market so they have had a good run by having a good, healthy a location to equities. what they are doing now is trimming incrementally that around the edges. they feel the inflationary, risk to rising interest rates are getting higher and higher as they look out over the forecast over the next year or two. it just means that everything is tricky. we hearken back to the chart.

equity prices back up at record highs in the u.s.. a lot of people again who want to trim back there risk exposure given how much prices have run up after the selloff that we saw. so they are in a month a lot of other firms. the biggest australian pension some bigng international names. incrementally wanting to dial back the risk exposure. right, thank you so much. don't forget to check out the go library. very easy to find. let's get more on the markets with senior strategist marvin low. great to have you in studio with

us. the 10-year note auction today. matching the record for may in 2009. in the face of everything that should be pushing bond yields why do they want to buy with enthusiasm? marvin: there's a man -- there is a demand for assets. despite all the hawkish miss around the world, their much higher than they have been but expectations were that they would be much higher by this time of year. kathleen: i want to take a look at the yield curve. rateows the fed funds versus the 10 to two year yield spread. you can see the white line, i can see it on my screen there is going along the bottom here it a 10 to two year treasury bend.

it is a flattening yield curve here it is this something that is going to get worse as the white line keeps going higher? marvin: i do believe we will continue to see a flattening of the curve and we will be talking about an inversion in the curve within the foreseeable future. certainly the fed says this time is different, but in inverted curves does have implications for a broader economy that history has shown us to be aware of. incremental seen depth toward a full-blown trade war. this give us a pretty good they said to assume we will continue to see u.s. dollar strength given that we have had this return to save haven demand play out in demand? marvin: i think investors are signaling the better positioned got the u.s. is as we

through these discussions. it has been interesting and that early on when we have had trade tensions there up you have seen dollar weakness but this most the 200 billion came to the forefront where we went you still 25% here in get a strong u.s. economy. ultimately is supporting that. between the better leverage as well as economic data, u.s. assets are in demand. haidi: how much further outside do you see? in the medium-term you will see dollar strength. in the long-term we will look at dollar weakness. if you throw into the potential impact for the economy from the trade war which is a short-term push up in inflation and impacts going forward. how does it inform your view when it comes to the greenback? marvin: absolutely.

the u.s. is in a way, i am hesitant to a this but winning the trade war, economic data is positively influenced by movements that are occurring i-4 tariffs and sanctions start coming into place. so that is ultimately difficult to model. we are taking that as a little bit of a high in terms of looking at u.s. assets but further along the line, whether or not it impacts the head willingness or ability to hike rates as aggressively as it is talking about as well as smaller shifts but still significant when you think about what the boj might do for the first time after going to the ultra low rate before everybody else. kathleen: i have to follow up on that. last week i interviewed the vice minister of finance. yes somehat he thinks

of this is a move. it is the end of negative rates. the first step to do an eventual pivot moving further away. even though the boj wants to billet as keeping -- easing policy because it makes these steps sustainable but maybe not that far in the future. marvin: i agree. i don't necessarily see it happening within a short period of time but they are doing a number of things with these policy announcements. one is an acknowledgment that what they're doing is not working. why continue with? it willssing everyone last a while. certainly come up market will push the 28 basis point and. it and for abandon the yen of the world, and jgb yields which haven't had a big impact on the other sovereign yields, does it start to impact?

we have seen the jgb driving treasury yields to a certain degree. over the last month or month and have or so. kathleen: one trillion alone in u.s. bonds. i have to ask you about jamie dimon. 5% on the tenure. it is possible sometimes, but do you see that anything begins to be on the horizon when the tenure can barely break above? marvin: i think the flatter yield curve discussion we have, deterring inflation is different from runaway inflation. that wemr. dimon spew have seen over the last nine months to a year, it is a bold call. how tax reformn is -- how fiscal service will

start to wayne. i don't know how we are so far above potential for the last year. haidi: i want to end with a quick word on equities. don't get too excited over the s&p come at this headline is always that we are within striking distance of a record high. if you break it down, just 4% of members on the s&p are at highs. very much shy of 200 and 80 stocks within 10% of all-time highs. that speaks to the lack of market breadth. you take a look at indicators, does it suggest to you that you are looking at a rally that is fragile? marvin: i think that what we have seen is the easy trade occur for the better part -- the faang stocks and technology. earnings have been a bit more of a challenge going forward. what we have seen is that when the fragility comes into the market, investors have pivoted

to another sector. they are not necessarily abandoning risk but looking for cheaper alternatives in an expensive world. everyone has a different interpretation here they are not abandoning the asset class, which is an important thing to keep in mind as we go to the fall. thank you so much for that. i want to bring in some of these lines coming through from the reserve bank of new zealand. the press conference just can -- just can alluding -- just concluding. longer than usual. estimate is 3.5% since the kiwi dollar is close to their value. a big downside move. a super dovish statement from the the enzi -- from the b and bnz.-- the it pushed back the expected

timing for that next move. for the ocr back almost a year and downgraded expectations of growth forecast there as well. marvin,o bring back your thoughts on this. are we looking at a sense of divergent monetary policy globally given that you have a number of asian central banks even the weakness in the currencies and a strengthened u.s. dollar playing a big part in that. really struggling to work out what the right policy is given this unprecedented growth environment. absolutely. and as much is what the central bank said come i think it's what they didn't say. certainly to me and i need to look into it more deeply when i leave here, trade tensions are all over the world. certainly, new zealand being so close to the bigger stories around asia, we have been able to avoid the economic part of

the discussion of trade worse. we will see more cognizant type of data showing reticence on the business part of things as well as impacting what central banks do and say. kathleen: the more trade dependent you are like so many nations in asia the more you to watch. perfect day to have you here. how tax office hits scored fox and earnings when and what that means for disney waiting in the wings. this is bloomberg. ♪

kathleen: i'm kathleen hays in new york. haidi: and i'm haidi start marvin sydney. validatingtimates

disney's decision to buy into fox. let's get to bloomberg entertainment reporter. give us the headlines and some of the background. so, yesterday fox the the estimates on profit and earnings. pretty strong performance across the lord. highlighting to strength of the cable business and their sports. forms. as well as a turnaround in the movie studio which has been struggling a little bit. as you said, with films like that pulled to it has had a massive growth. that's important for disney who is getting a studio and the look. but they also took the what newty to lay out fox will be as part of this deal with disney. company.ill run a new

they will be made up mainly of the fox news channel, fox broadcast, and fox sports. really they spent a lot of the core analysts afterwards which will be that last call. relate laying out the strength andhe nfl content they have inspiring investors around the new fox that will be coming out next year. kathleen: 40% of the nfl heard that is what the fox network will own. let's who want to disney. bloomberg intelligence has disney is undervalued. are they saying that? >> i suppose it depends on what abilityew is of their for their much wanted streaming service. they have challenges that investors are looking at. back rightsto call for their content to this new streaming platform that they want to create.

example that for they are in talks with turner. the fox called there were questions about the fox film output yield with hbo which is part of at&t content now. a lot of their films, after they've been in theatrical distribution they then their first window after the box office is on hbo. that will be something that cally will also have to back on. it's something investors will talk about with how deliverable is the new streaming service for disney? how will they compete with netflix? kathleen: a lot of big questions. thank you to our media reporter. now, a programming note for you. you cannot miss our exclusive interview with softbank coo

tomorrow live on bloomberg television at 4 a.m. friday at a time and 2 p.m. thursday in new york. this is bloomberg. ♪

haidi: one of the latest stories from tictoc there, our partnership with twitter. for breaking news make sure you are following tictoc on twitter. i'm i'm haidi stroud-watts in sydney. kathleen: you're watching a break australia. let's get a quick check of the business flash headlines. must is the latest carmaker to have take emissions and economy data. they conducted improper test and the ministry of transport will discuss the matter later. automakers were as to review compliance after nissan and subaru also fight data. yamaha and suzuki also conducted improper test. haidi: new york city council

dealt a political blow to uber and other companies. a one-year industrywide cap on and given authorities ability to set minimum pay rates. the number of ride hailer's sword from 12,003 years ago to 80,000 today. uber managed to defeat a similar proposal in 2015. kathleen: investors pulled money from bill gross bond fund, reducing assets to the lowest since november 2014. the janice henderson global unders -- unconstrained fund suffered. has piled up year to date losses of 7% attributed in part to a misplaced that that treasuries and german bonds would converge. fori: that's just about it daybreak australia. kathleen and i will be sticking around for the next two days -- next two hours of a brick asia.

-- daybreak asia. the main data point of the day is china inflation. for the slight pickup that is expected to consumer inflation, easy when it comes to producer prices. that will weigh on industrial profits and that servicing -- debt servicing. he says this point we are seeing a little bit of downside to the economic headline gdp as a result of the tariffs. thateen: after listen to test come if you decide you want to get away from it all, we have , a chief revenue officer hong kong-based company that has all kind of a get into string investors from sequoia capital to goldman sachs to -- you can go online and get experiences, i hot company. we find out how they make this model work.

that's it from daybreak australia. all the action next in "daybreak: asia" this is bloomberg. ♪

haidi: it's 9 a.m. here in sydney. welcome to "bloomberg daybreak: asia." are set toc stocks fall and trade tensions are going higher. chatter is heading back at tariffs and the u.s. is sanctioning russia. currencies are under pressure. the kiwi is declining. the outlook for growth is also weakening. >> i'm kathleen hays in new york where it is just past 7 p.m.. u.s. and japan tackle trade in new talks in washington. any deal could be threatened for support for the cpp. earnings topped estimates and the results