>> welcome to "daybreak asia." face acific markets mixed start after wall street halted its longest slide and's march. -- since march. boycotts u.s.gan electronics and says he won't be pushed around. rami: from bloomberg's global headquarters, i ramy inocencio in new york. losers. among the day's goldman sachs says it too wasn't on board when musk wrote his

most recent go private tweet. ♪ ♪ rami: good morning to our viewers across the asia-pacific and around the world. today, weted states got a little bit of a breather stopping that four-day fall in u.s. markets. it was interesting because there wasn't all that too much to hang on, especially when you look at erdogan saying he was going to boycott u.s. electronics. we didn't see much beyond that. taking a look at what is happening, at least investors are looking past that and pushing the s&p 500 up by the most in about the past three weeks or so. you can see the s&p up by about

6/10 of one day in percent -- 1 %. we saw consumers, financials, all relevant sectors of the s&p rising. in addition, it wasn't just risk. it was also currencies, also about bonds. take a look at what is happening in terms of the bloomberg dollar spot. that is up at 1193, the strongest in 14 months. we are seeing some currencies take a breather. the lira, up to 6.3. the ruble, also catching a bit. the south african rand, rising the most in almost a month. vonne: it's interesting to see this lira bounce back, how sustainable is it given the rhetoric? goods.cotting of apple also, there's a lot of financial woes with turkey.

we are not hearing any indication of hiking rates so far. perhaps that could be in the eye of the storm. let's take a look at how we are set up for asia. it looks like we are pretty slow going, so to speak. take a look at wellington. sydni shares, also heading lower. the nikkei futures, looking flat it after the outperformance of over 2% yesterday. south korea, closed for liberation day. we mentioned this bounce back. in yen, the biggest decline months. we are still hovering around these 18-month lows, really weighed down by that disappointing data out of china. we are hovering around 6.89 for the offshore renminbi given this bounce back we've seen among the lira. we are still watching a lot of like thecurrencies

rupee, dropping to a record low, and the rupiah, as well. let's get you caught up on the first word news. jessica summers joins us from new york. indonesia plans to restrict imports of capital and consumer goods and cut crude purchases to send the rupiah sliding. policy makers may be forced to raise rates again when the central bank needs later today -- meets later today. weakened to its lowest against the dollar since 2015. india's trade deficit widened last month to the most in more than five years. that worsen the outlook for the rupee, which hit a record low in a selloff of emerging-market currencies. the shortfall was fueled by higher oil prices and compares

to a $16.6 billion deficit in june. a weaker rupee is positive for exports but poses inflation risks. it fell past 70 for the first time ever. the tesla go private drama has turned another page. goldman sachs is saying there was no formal relationship when elon musk tweeted they were working together. sources tell bloomberg that the bank had not officially signed on when musk signed his message. tesla shares fell on the news. berkshire hathaway has added to its holdings in two of warren buffett's a favorite sectors, widening its bets on banking and aviation. that is as part of a strategy to shift its $180 billion portfolio. berkshire has quit some long-term holdings, including ibm, while moving into apple and other companies.

global news 24 hours a day on twitter,t tictoc on powered by more than 2700 journalists and analysts. i am jessica summers. this is bloomberg. yvonne: a spat between the u.s. and turkey escalated tuesday when turkish president erdogan vowed to boycott iphones and other american electronics. -- hisfinance minister finance minister accused the u.s. of waging an attack on turkey's economy. a series of speeches defined the conversation around turkey in the last few hours, starting with president erdogan. he said that turkey has come under a coordinated attack, and he would do everything in its power to defend itself. as a result, he added they would .e boycotting american products

that shows you how the broad conversation escalated, and we will have to wait and see whether the united states responds again, either with sanctions or tariffs. we did see a recovery in turkish assets, stocks, bonds. liquidity is slim. the coming hours are going to be a real test for the country as it looks for sustainability and credibility under international investors. rami: our next guest has been recommending investors to avoid turkey for a while now and says that nothing has happened to make him change that view. joining us is the head of macro

strategy peter cheer. good to see you. we've got to catch a little bit of a breather in u.s. markets. i of the storm, or calm after the storm? it's probably not over. >> i don't think it's over. have aemy securities, we group of geopolitical advisors who are very plugged into the situation. we've seen turkey moving aggressively away towards the west and more towards the east, and there's nothing to stop that from continuing. i think it's going to continue, and i think the events of last week were big enough that it's going to be hard for investors to come back to their bank. i think it's problematic and is an ongoing issue. rami: each side, the u.s. and turkey, is saying, i'll raise you this. a stanza blake, the u.s. can go much deeper than turkey. ostensibly, the u.s. can go

much deeper than turkey. >> they can fall back more towards the east. it consulates our relationships, which are already turkey. they are a nato member, which causes us problems. rami: what is interesting here is we are seeing, at least on the fringes of the continent of europe -- brexit on one si de, some kind of deterioration in turkey -- is there a real clear fear that turkey will break from nato, break from the west? >> there is a real fear, and it should be that case. turkey did not allow us to use their air base in 2003 to strike iraq, so they have not always been supportive of our nato mission. they have been buying russian equipment. we have to work on the assumption they are on their way out. we've got to consolidate with europe, and europe has its own set of issues.

you are starting to see italy heat up again. you are seeing bond spreads widening. you are seeing some rhetoric that they want aaron t is for a bond spread -- want a guarantee for bond spreads. yvonne: you are looking at europe. when it comes to em, we see how rattled it has gone giving the turkish turmoil. indonesia, stepping into stem the rout on its currency. is it a brief contagion versus something that is systemic? where do you think we stand right now? >> i do not think we have seen the worst of it yet. we've started to see the knock on effects. venezuela, argentina, turkey getting hit pretty hard. people have to start selling other assets. they are going to say, we've got to cut our exposure. the eye ofs is truly

the storm, and we are going to get another round of emerging-market weakness. that's when you will want to start buying countries that have been artificially destroyed rather than those that deserve to be sold off. yvonne: the valuations are certainly getting attractive. one key thing i'm looking at right now is the mexican peso, which had been very strong, and on thursday and friday, it started reacting negatively to the news in turkey. i want to see if that has sustained strength. there was no fundamental reason for it to get weaker. we've got to remember. we've been through years and years of quantitative easing. people have been buying assets at prices that may or may not make sense. there could be more room for problems in em. turkeys ofvoid the the world. yvonne: in terms of asia, it'sone is saying

relatively contained, but we have seen these risk assets stabilized. drag do you think this chinese slowdown is to the em trade? >> i think it slows the em trade, but ironically, out of the u.s., what we are seeing is china is less willing to have a trade war with the u.s. i think week chinese data was part of the reason we arose today. more people have put together the idea that if china is weak, they are going to come to a trade deal sooner rather than later. isk chinese data right now viewed very good in terms of how people view the trade war. yvonne: stay with us. we will talk more about the u.s. side of things. care to discuss the implications of turkey's economic troubles and action from the fed. rami: later this hour, a former economic adviser to henry kissinger tells us how america's

dispute with turkey as well as china could affect global growth. this is bloomberg. ♪

asia." this is "daybreak i yvonne man in hong kong. rami: i am remy inocencio in new york. stocks --day fall, concerns about turkey's lira crisis. it helps that some strategists are saying turkey's turmoil isn't like the asian financial crisis of the 1990's. su keenan has more. is therey a longshot any comparison. you have other analysts telling their clients, it looks like things have faded, but it could change. let's take a look at the snapshot. we have the dollar stronger. that put pressure on

commodities, even though we saw oil rebound earlier. small caps saved the day. the s&p 500, halting its biggest losing streak since march. we talk about tesla, how it continues to be under pressure. where is that funding coming from? you also see tapestry, a big move higher on strong earnings and a view that china is the big market for these luxury handbags . this is the parent company of victoria's secret, a badly beaten up brand. the semiconductors, under pressure. a lot of hedge funds, adding to their stake in an xp.

let's take a look at the heavily traded etf that is tied to turkey. we talked about it being down 15% friday, down another 11% monday, and it rebounded as the lira came back. now we go to gtd. the correlations between the lira and the em currencies, hitting a one-year high. we are seeing em currencies going one way, even as the lira rebounded, which many people believe is a situation where turkey stands alone as it weather's the crisis. oil a racealso saw its early rally. gold continues to trade at its 18-month low. then you've got bitcoin, now down 70% from its high. su: oil, towards the end of the trade up, ato

surprise gain in u.s. supplies. and back intold the bloomberg tv. gold, extending losses. they are not turning towards gold. you've got rising interest rates, a stronger dollar, and stronger economic data, also part of the reason gold is losing favor. atcoin, 70% below its high, number of factors weighing on bitcoin, putting that the etf many awaited, looking like it is further down the line. rami: it gives me chills to see 6140. how the mighty have fallen. su: if you are a holder, you've got a lot more than chills. rami: let's get back to our conversation with academy securities head of macro strategy peter tchir.

all turkey in the last block. let's look ahead to what is happening elsewhere. global volatility is at an average level higher than it was in 2017. hop into the bloomberg terminal. this is in the gtd terminal. -- the gtv terminal. in the u.s., a lot of folks are saying that we hear are the ultimate haven play. peter: there was this view in the markets that people were selling volatility across the board, and it was with congress and the senate in recess. there was no likelihood for market reaction. it's not surprising we had a bit of this pullback. my view has been that market structure right now has diminished liquidity in the markets. i'm not sure which direction we are going to move.

you are making less of a directional bet, and i think it's going to work out over the course of the summer. rami: looking at the equities side of things, i've got another bloomberg terminal i want to bring up. taking a look at the yellow line, the s&p small-cap. hitting a lot of record highs in august despite everything that is happening. we've been talking about technology, chips, not really on here. what do you think of that? peter: it has been the tax cuts that took a time to work their way through the economy. you are starting to see not only big caps with great earnings. the small caps have been doing really well. for small business was at its highest since 1983. i think small businesses have been huge winners, and it is starting to reflect in the stock prices.

they are going to be less effective -- affected by the trade war. other investment possibility is cash, the dollar, but mark cuban famously said he sitting on the sidelines with a lot of that. what do you think of that? peter: the dollar trade has become very crowded. at the beginning of the trump administration, everybody was saying, dollar weaker, dollar weaker. i want to get through this em crisis. i want to look at the mexican peso as my trigger. if that gets stronger, we will see some dollar weakness, but we need to see a turnaround in the em's. yvonne: it sounds like you are pretty cautious about em's and some yellow flags in the u.s. market, as well. where are you hedging at the moment? >> one area we are looking to buy is china. i think we are going to get a trade agreement. that's going to take some of the

pressure off of china. i want to look at the chinese market from a contrarian standpoint. i don't think banks are dependent as much on the yield curve. that's another area i tend to look at, u.s. banks, and i would be looking to buy china. overall, i want to pick four or five emerging markets to buy. just not yet. yvonne: let's focus on china. obviously, we've seen a lot of change, whether it's the shift from the pboc and these progrowth policies. they are doing some targeted easing to loosen and soften the blow to the economy. >> they are doing the targeted easing, and i do believe we are going to come to some trade agreement. china is going to agree to buy things they were already going to buy. it will relieve the pressure, and that will re-create the demand for chinese assets from foreign investors. yvonne: you mentioned about tech a little bit, as well. we've seen a little bit of a

crisis when it comes to the likes of 10 send, which reverberates on the u.s. side. do you think tech can be a driver of the markets? peter: i think it can be ok. i really like playing with puts and calls rather than outright positions. they were down 20%, and to me, it's unusual for a big cap name to have that kind of move. that's why i like playing that sector with puts and calls. you reduce your risk of getting it wrong. yvonne: you also mentioned about this drop in cryptocurrencies, falling alongside em currencies. are we set for some type of liquidity shock? peter: i think we are seeing the end of this bitcoin run. when north korea was having its problems, and before that, cyprus, anywhere else where you had emerging market countries with problems, you saw bitcoin higher.

to some extent, if you want to now bitcoin as a safe haven, sovereign boundaries, i don't understand why it's rallying. we are going to see bitcoin drop and drop below 5000 again. great to have you, peter rami: -- yvonne: great to have you, peter. don't forget our interactive tv function, tv . you can watch us live as well as dive into any of the securities we talk about. plus, become part of the conversation. send us instant messages during our shows. check it out at tv . this is bloomberg. ♪

a quick check on the latest business flash headlines. copper fell to a one-year low on

signs of that bhp is making headway in talks. the two sides agreed to extend talks into wednesday in an attempt to avoid a second strike in two years. copper is often seen as a barometer of economic growth. young china jumped on reports that the china investment corporation is said to be backing a potential bid. the sovereign fund and issa r part of a consortium that is considering a buyout. sources say they may take young china private before potentially relisting in hong kong. shares have fallen more than 10% before tuesday's jump. yvonne: struggling commodity trader noble reported a net loss --128 million u.s. dollars $128 million in the first quarter. noble has been in crisis for a year.

a rescue plan would hand control to senior creditors while existing shareholders would see their holdings slashed. at how elon musk is gearing up to take tesla private, but who is actually on board? this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots.

and it can be included with your internet. 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. hong kong. the harbor this morning, you can see we are still in the typhoon season these days. 30 minutes away from asia's first major market open. ramy: 7:30 p.m., tuesday in new york, where markets closed up 0.6%. we have crazy thunderstorms here, but the sun is peeking out as it sets over the manhattan skyline. i am ramy inocencio in new york. yvonne: i am yvonne man in hong kong. let's get to the first word news with jessica summers. jessica: the white house says president trump is experiencing

great frustration in dealings with turkey calling on ankara to release a detained american pastor. the deepening standoff has seen the lira lose a quarter of its value this month alone as washington imposes sanctions. president heard one has vowed to boycott u.s. electronics, and said turkey will not be pushed around. >> the president has a great deal of frustration, on the fact that pastor brunson has not been released, and other u.s. citizens have not been released. we will continue to call on turkey to do the right thing, and release those individuals. jessica: harley davidson is pushing back on what it calls misinformation surrounding plans to move production overseas. it has been the target of president trump's anchors since saying they would look abroad to sidestep an eu tariff. he tweeted he would support a boycott of the company if it went ahead. be ceo says it needs to price competitive in markets with tariffs.

goldman sachs shareholders have won the right to proceed as a group in a $13 billion lawsuit claiming the bank defrauded them on mortgages sold before the financial crisis. they say goldman failed to disclose conflicts of interest related to investments around risky home loans. a judge in manhattan has granted a request to certify the case as a class-action. at police 22 people died when a highway bridge collapsed in the mediterranean port of genoa. a major route from northern to southern italy. rescuers fear more victims might be buried in the rubble. the bridge was built in the 1960's. the company that operates the stretch of highway says strengthening work had been underway. atlantia dropped over 10%, the biggest one-day fall since 2008. 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 jessica summers. this is bloomberg. yvonne: thank you, jessica. we are counting down to some of the market opens in the asia-pacific. are in for a quiet session, a pretty welcoming sign. sophie: south korea closed for a holiday, so they will be left out of this. when you jump to the terminal for the market snapshot, asia futures pointing to a mixed session. japan potentially seeing some positive sentiment. the yen back above 111 against the dollar. front, waiting on august consumer confidence and wage data from australia. futures lower by 0.8%. 10 yearcould hit a high if sentiment improves. on the agenda, chinese home prices later this morning.

chinese tech stocks will be in focus, and we have tencent earnings coming up, as revenue growth has slowed and they face regulatory setbacks. since hitting a peak in january, tencent has wiped out about $150 billion in market value. ramy: wow. attention will turn to indonesia later today, with trade data due out and the central bank deciding on more policy. what is the expectation for both? sophie: looking like a close call when it comes to the policy decision, from indonesia, as rupiah has found itself stuck in the lira's downward vortex, prompting the central bank to defend the currency. most economists expect they will hold steady, but some anticipate a hike to 5.5%, given the mandate is price stability. ,a you can see on the char, which you can find on the gt the

library -- gtv library, the rupiah has lost more than 7% against the dollar this week, ee timete hikes thrt since mid-may to stabilize the currency, the worst performer in asia. yesterday policymakers announced and imports tol help a stabilized rupiah as well. ramy: sophie kamaruddin on the markets. thank you very much, as always. we are still following what's happening with tesla and elon musk, steering his company toward the biggest leveraged buyout of all time, but how is he going to pull this off? with a little help from wall street. late monday, musk tweeted he's excited to work with goldman sachs and silver lake on the deal, but they may not actually be on board. let's go to bloomberg executive editor for technology, tom giles. this is similar to the funding, not funding. goldman sachs, silver lake? what is the deal? tom: we are picking up on a

pattern here, where it on musk sends out tweets that give an indication of things that are may be further along in the process than they actually are. he tweeted out late yesterday that he had a couple financial advisors on board. it turns out, in reality, they were not quite as engaged as he gave an indication. lakean sachs and silver are both indeed working with elon musk. neither of them is formally signed on, in the sense of having been retained, signature on the bottom line, about them being his designated financial advisors. it turns out goldman sachs had not been working with tesla at the time he sent out his controversial tweet, about taking the company private at $420 a share. silver lake, it is a little less clear exactly when they got into the process, but even now it

does sound like their advisory role is much more on an informal basis. certainly that can change, but they all keep alive questions about just how engaged these financial advisors were at the time he gave an indication he would take the company private. ramy: on one aspect, ok, we have the financial advisors, some confusion there. there's also confusion with the special committee on wether they will go private or not. what is the detail here? tom: they put together a small number of board members from the tesla board. remember, this is a board whose numbers, there's not a lot of independence on that board, in the sense that you have elon musk, you have a relative of elon musk's. you have certain people who are immediately conflicted out. they do have a number of people who are independent, three of

them in particular who are on this special committee. those people will in fact now be assessing whatever proposal elon musk is able to put together that is aimed at taking the company private. it will be incumbent on them to really go over it with a fine tooth comb, to make sure that they are looking out for the interest of the existing shareholders, and certainly those people who would be funding this transaction, maybe people who would be coming in, buying new shares. or if you are an existing shareholder and you will keep your stock, again, those people are going to want to know this independent commission is really looking out for their interests. yvonne: a bit of irony here with elon musk. depending on saudi arabia to secure some type of funding. wealth isudi arabia's

based on the extraction of oil, and elon musk has long rallied against the evils of oil, so money talking here, really. tom: this is a case where every chance he got, he talked about the evils of big oil, the impact that fossil fuels have had on the planet. his whole company is predicated on the idea of finding an alternative to fossil fuels, electric vehicles that have become very popular with their customer base. but, you know, in the case of saudi arabia, saudi arabia has a vested interest in finding alternatives to oil as well, because those reserves at some future date will be depleted, and as we talked about before, they really need to look to their future, their post-oil, petroleum future. but yes, as you rightly point out, there's a great deal of irony in the fact he now really

perhaps desperately needs the isdis, whose great wealth based on the extraction of oil, to bail out his company at this time. ramy: bloomberg news executive editor for technology, tom giles. thanks so much for pulling that apart, trying to make sense of where tesla stands here on the financial side and the special committee side. meantime, let's take a sneak peek into the sec's latest 13-f filings, because they have offered a glimpse into the stock holdings of some big name global investors, starting with warren buffett and berkshire hathaway. they added to investments in two of his boss's favor sectors. one thanking, the other aviation -- banking, the other aviation. they boosted stakes in goldman sachs, delta and southwest, and went into some tech, including

apple, but quit some other long-term holdings, including ibm. yvonne: we were talking about tesla, qwe saw fidelity, t. rowe price cut tesla stakes over 20% in the second quarter, so perhaps also focusing on financial woes with the company. meanwhile, we saw george soros, his fund bought facebook despite the recent troubles. it seems facebook was a popular pick among some of the money managers. .s. major holdings as of june 30th. unfortunately, depending on whether they held onto these holdings, they did suffer from that record slump, close to 19%, that we saw in july. so certainly tech, some of the popular trades. spotify was one, pandora also. semiconductors as well like nxp. ramy: talking about facebook, stanley druckenmiller, the former money manager for george soros, took a huge wager on

facebook. we know how that ended up later on. he apparently bought $178 million, according to that regulatory filing. it's not just them. he also went into microsoft, amazon, but also similar to what we said earlier, exited intel and micron. interesting some of the chips are seeing a little bit of an exit. facebook definitely one of the biggest plays in the second quarter. interesting to see what actually happens in the third quarter, if people will stick to their guns. we talkcoming up next, more about the lira, the plummet that might be easing now, but turkey's troubles are far from over. who will come to the rescue? wwe have a former deputy u.s. trade representative, who says it could actually be china stepping in. this is bloomberg. ♪

yvonne: this is "daybreak asia." i am yvonne man, in hong kong.

ramy: i am ramy inocencio in new york. let's return to turkey again, where president erdogan has vowed to boycott iphones and other u.s. electronics in tariffs andfor sanctions. tradeer u.s. representative -- let's get to the top of the view. where do you see things going? >> it is hard to say at this point, because the turks have to deal with their problems. the u.s. has not made any easier. in fact, trump has made it a lot more difficult, and that is a problem in itself, but the fundamental problem, they have a current account deficit of 6% of gdp. they borrow heavily in foreign currency to finance that. they will have a lot of rollovers, refinancing. interest rates are higher in the u.s. than before, the dollar is

higher, making servicing the debt more difficult. first of all, they have to deal with fiscal problems, so they don't have such a big domestic deficit, external deficit. second, they are going to have to do something with interest rates to make it more attractive for people to hold their bonds. ramy: it seems, though, that there is no apparent will, at least, and president erdogan is pushing the knife just a little deeper. on the bloomberg terminal, i want to show you and our viewers what's happening in terms of total trade between turkey and the united states. $21 billion. that is not so much, right? the latest news about the iphones, u.s. tech, even less than that. bob: not a big thing for the u.s., really not consequential, but erdogan is attempting to look like he's defiant in the face of increased u.s. sanctions against these so-called 232 sanctions.

he has to do a lot of things internally to restore the confidence of investors. that is the big challenge for him, considering the fact he said he would not do this. ramy: right. bob: of course, now we have seen it has an adverse impact on other emerging market economies, particularly those with large current account deficits and large budget deficits, one clearly being argentina, another being south africa. but the broader problem is, other emerging-market economies ca be affectedn -- can be affected, because many of them are heavily indebted in dollars, during the low interest rate environment, the gushing of liquidity that came out from 2008 on. a lot of external debt was built up by emerging markets, a lot of it in dollars. now with higher rates, a higher dollar, servicing that and rolling it over will be much more expensive for many countries. some can deal with it. many of them have credible central banks, credible financial experts, engaged in

the process. russia has a very good central bank governor. south africa, some very good people. argentina. many other countries. these are people who understand how to deal with a crisis. the problem is, i suspect that the turkish financial experts, governors, central bank and others, understand how to deal with it, but erdogan doesn't want to give them the tools to deal with it, which makes this particularly concentrated. yvonne: so, bob, you mentioned the ramifications, if the economy is struggling in turkey. at what point does it ask the start to hurt erdogan's base, and this starts to backfire? bob: that's a complicated question, a good question. he has a lot of popular support, but the business community is clearly hurting now, particularly because they have a lot of debt to repay. they are buying back their bonds at a much cheaper rate. to some degree, that will help them. they are more competitive because the lira has

depreciated, so they can sell goods internationally at a more competitive price, but they are still so indebted that it's a problem. i don't know how long he can continue to do this, if the economy continues to deteriorate. the big problem, as your currency deteriorates, you have more inflation, and that for many emerging markets is the biggest problem of all when these things happen. many people don't have a lot of debt, but they buy things, and that is where the discontent will manifest itself to the extent it does. we don't know if it will, but if it's one area, that would be the area. yvonne: so do you expect the president to start giving in ? or are we talking about a bailout from the imf? he: in the past, in crises, has been relatively pragmatic. butakes a tough position, he's also smart enough to negotiate his way out of some of

those positions. this will be more difficult, because he has dug himself in very deeply. he could go to the imf, but he said he would not want to do that. he said he would not impose capital controls, would not go along with higher rates. if he goes to the imf, that is no panacea, because they will want these kinds of things. moreover, if he goes to other countries, talks of going to qatar, china, russia to get help, those countries, unless they are doing it entirely for political reasons, they don't want to lose $20 billion, $30 billion, $10 billion either, so they will ask the turks to impose some conditionality for their lending. even going to these countries may sound good, and they may try to help them for political reasons, particularly china and well, butybe qatar as they will want their money back, and as a result some policy measures by the turks to convince them they will get their money back. ramy: mr. erdogan said he shares

a vision of economic convergence with beijing, just a couple days ago. if they decided to move towards the east, towards china, is the cost so prohibitive that it actually would not be able to happen? what are we talking about here? bob: that's the interesting thing, talking about convergence with china. china actually has very highly-regarded financial experts running the country. ramy: that's a good thing. bob: yes. working for xi jinping. they are very competent people, and they are relatively conservative in the way they borrow. they do not engage in big borrowing. if you look at the debt to gdp ratio, it is pretty modest. and they also have a lot of public opinion that says, you cannot just use your reserve for anything. it is our hard-earned money at stake here. the chinese are very smart, very

shrewd negotiators, and if he goes to the chinese, i think for political reasons they will want to help him, move turkey away from nato, toward the beijing area of influence to a greater degree. that's something they probably would do, but the question is, what are the economic costs of doing it? are they willing to pay those economic costs? and of course, it just causes more problems between them and washington, which i suspect they don't want at this point. yvonne: bob, we just have a minute left, but isn't it interesting -- would turkey be a key market for china when it came to internationalization of the renminbi, would they want to step in and help turkey in a way that could also internationalize the currency and ensure the belt and road runs through europe? bob: that would be part of it. they want to have the renminbi play a greater role in international transactions, settlements and trade.

they also, of course, once the belt and road to be more expan sive, going through central asia, through anatolia, turkey, up through europe, would be something they would want, and they would want more influence. turkey is a nato member. if they could pull it away from nato, i am not sure they could do that, but if they were to do that, have it be part of a chinese circle of influence, maybe that would be attractive. but at least to get some ports, some facilities in turkey that they can use for their commerce, navy,so perhaps for their that would be something they would want to do. but again, they would have to pay a price, and are they going to risk a lot of money? also, most turkish trade is with the western world, so for turkey to pull away so dramatically from western europe would, i think, cause a lot of disruption for their economy, even more than they have undergone so far. yvonne: bob, always good to have

you. bob hormats, joining us from new york. we have more on daybreak asia. this is bloomberg. ♪

ramy: a quick check of the latest business flash headlines. singapore's state investment firm has completed a sell down of u.s. banks, quitting holdings in goldman sachs, morgan stanley. they are distancing themselves u.s. lenders to focus on other new economy investments. chinese banks remain a priority. in july, temasek said expansionary fiscal policy may threaten a cyclical recession in america. chinese -- a chinese sports retailer is looking to move manufacturing abroad as rising trade tensions threaten plans to expand in the u.s. they want to make the supply chain more diverse, considering

vietnam and other locations in southeast asia. earlier this year anta outlined plans to expand globally, saying it aimed to sell its own brand in the u.s. market by the end of this year. yvonne: counting down to the market open in japan and australia. south korea closed for liberation day here today. traumase, the turkish taking a breather, with the lira bouncing back closer to what we saw on friday, em currencies rebounding as well. looking like a quiet session in asia. nikkei futures pretty much flat, after the 2% outperformance yesterday. kospi futures are trading, but pretty much flat, closed today in seoul markets. asx 200 poised for unchanged at the moment. in the next hour, we chart be diverging trend in chinese new home prices with our guest, henry chin. we expect that data later this morning.

and, highly anticipated tencent earnings. the market open is coming up next. this is bloomberg. ♪

buncombe -- the top stories is wednesday, asia-pacific markets with a mixed art. wall street holding its longest light since march. the dollar hitting a 14.5. president are to one boycotts united states electronics and says he will not be pushed around. past 8:00 p.m. on a

tuesday. faceseva -- indonesia rate production. policymakers faces billions of dollars in reserves. hero to zero, tencent reports on wednesday with the stock down 25% since you enjoy. yvonne: seems like we are taking a break here. we did see the rhetoric between them continue to ramp up. certainly, a lot of focus today. you mentioned tencent earnings. indonesia will be focused on

here with the currency. some here.ang on in terms of the contention, that is at least come up on the downturn just for today. although, catching a bit from the turkish thereof as well as the ruble to the south african rand. eye of this is just a the storm, that is something we will figure out over the next days. yvonne: let's take a look at the market open. sophie: maybe returning to the market and it looks like tuesday's japan led rebounds and may have extended to today sessions. adding a 10th of a percent. by .21% righther now. that is 111 against the dollar. u.s. and japan yield differentials given the doj's

policy stance. dollarth agree that the will carry that has become more appealing. they will be the central bank in the spotlight today. it looks like a close call as to whether or not we will see a rate hike given the weakness of the trading. we do have from estrada, wage data and consumer confidence for august. they aussie dollar is headed for a fifth day of lows. there whene declines it comes to what is happening with earnings season ramping up down under. some extremity names on the back of the, some stocks to watch in sydney. and forget near profits. kohl's was the only unit to see a return on capital. it is no surprise at the merger is still on track for november. whitehaven cold also, on the

list after posting record profits but the stock was downgraded. we are seeing fairfax media lose about 1.7%. it did report underlying profits for the entire year. rami: thank you sophie. markets and of the risk estimates are enjoying a spell in the sun right now. the question is how long this relief will last. garfield, is this the end of the storm or the eye of the storm when it comes to emerging markets? like thely more latter. that is because, the storm that has been going through emerging markets has been blanketed for thee a while, it is not lira and the declines were only the latest in a series.

i have got a chart that will help explain what part of the problem is from the gtb library. on what i haveon talked about a few times before. the basic problem is come volatility has exploded for emerging-market assets. thatan see how that shows volatility and emerging-market has climbed to the highest since the crisis. that is coinciding with the breakdown in performance for emerging-market stocks. emerging markets are supposed to be high risk, high reward. that means that they are particularly sensitive to , that willbecause fade into the adjusted returns. as long as, volatility remains high, that emerging-market assets will remain under pressure. rami: interesting that the rally

we are saying come after week china data all missing estimates. what is going to be the biggest driver of short-term sentiment now? >> garfield: for china in particular, it depends on what the authorities do. we had a slew of easing measures in july. they have not really come to have much of an impact that is oh so far. with the data shows is how much those easing measures were greaternd how they need follow-through in order to help that sentiment turned. asia markets are looking pretty quiet today. we are looking for some clarity in a busy but potentially quite day. what are you watching out for the most? probably what happens in hong kong. we have those tencent earnings that would have been mentioning. those a massive meltdown in hong kong to that is very concerning

because that is purely about what is going on with some of the brightest stars in the local economies here. if we do follow through on those declines, that sets up to a vulnerability to external shots. tencent is certainly in focus, we will watch indonesia as well. as get to bank of indonesia now. make another rate decision on wednesday. economists are saying is a close call. one of the region's biggest losers in sheer, second only to the indian rupee. indonesia plans to curb imports and sell a dollar bond. the report cannot yesterday. his up on to be enough? >> good morning. that's a question. have seen pretty aggressive steps by the central bank so far

raising interest rates intervening heavily in the foreign exchange market to try to stabilize the rupiah. what we are seeing now from indonesian authorities as a cabinet meeting with the president last month and they have come out with some new visions to try to curb imports. we also interviewed an official from the bank yesterday who sellinge possibility of a dollar bond. shore this is trying to up the foreign exchange reserves. the central bank has drank sincees by $14 billion the emerging-market crisis started. they are under pressure to try to restore some of those reserves and reduce imports will help to reduce the demand for dollars and that should help to stabilize the rupee moving forward. are major they

external risks. turkey they were crisis at the moment but also, ongoing u.s. federal reserve tightening. rupiah weakness is probably in the cards. the bank of indonesia is meeting today, unable great hike? is that in the cards here/ >> that is going to be a very interesting decision today. serve, call sadly for the bank of indonesia to halt the interest rates at 5.2%. we have seen more analyst starting to change their view given what has happened to the lira. indonesia has been one of the hardest hit countries in asia.

been of indonesia has and tog to be preemptive get ahead of stabilizing the rupiah. preventing those at the end of the weakness having an impact on inflation. i think there is a real chance of an interest rate increase in today's meeting but we will wait to see it later. rami: what does it mean for the rupee as well as the r.b.i.. the trade deficit data that came out last night showed a shortfall of $18 billion. that was a lot higher than the about $15.5of billion. the main reason is the high import ball. india is one of the world's

biggest will consumers. it imports about 80% of its needs. they higher oil prices have had a severe impact on the trade deficit. that obviously means more dollars having to be spent to purchase those oil imports. that has undermined the repeat. we saw the rupee go down to 70 to the dollar. it is utterly is level as overreached. i think with oil prices remaining elevated, we could see the trade deficit remaining under pressure. that means for the r.b.i., and more complicated policy a look. inflation has started a come down. figures, theicit repeat weakness as to those risks and we could see some more policy tightening in the coming months.

rami: first news now at jessica summers. goldman sachs shareholders have won the right to proceed as a group in a 30 million dollar lawsuit that claims the bank the front of them on mortgages sold before the financial crisis. the sitter say: failed to disclose conflict of interest related to investments around risky home loans. a judge in manhattan is now printed the case. berkshire hathaway has added to its holdings into a warm potato sectors. banking and aviation. a boosted investments and delta, andhs, subplots us court appeared that is part of a strategy to shift to $180 billion portfolio. moving into apple and other companies.

at least, 22 people died when a highway bridge collapse in the mediterranean port of genoa. rescuers feared come on more victims may be. in the rubble. the bridge was built in the 1960's and the company that operates the stretch of highway says strengthening work have been underway. they had dropped momentum percent, its biggest one-day fall since 2008. the tesla drama has turned another page. goldman sachs is it was no formal relationship when elon musk to get that they were working together. sources told bloomberg, the bank had not officially signed off with mask sent his message. despite musk's confidence, they were not board tesla shares fell. global news 24 hours a day, powered by more than 2,700 journalists and analysts in more jessica countries, i'm summers. this is bloomberg.

tencentill ahead, will find its head of 10 asian research? the outlook for the company ahead of its second-quarter earnings release. yvonne: head of the asia-pacific research tells us why he thinks china's property market would not survive mounting debt tensions. this is bloomberg. ♪

rami: this is daybreak asia. the next couple of hours will bring the release of the latest new home prices. the housing market, extended a divergent trend in july with prices rising faster in smaller cities. the market remains resilient and likely to emerge unscathed from the current turbulence.

always good to see you. this was supposed to be a small year for property. the trade tensions. you the deleveraging campaign. you have the home sales, they have been quite good. the rigell a terry in july comes with tensions in that reinforces to keep messages. the deleveraging on the chinese government is actually working the wall replace warren buffett going forward. something i want to highlight, this emerging trend in the china housing market which is built to rent. a huge support for the government and stronger interest on the investor reports as a result. what this means is that we do have a brighter future encouraging future.

yvonne: how comfortable do think the government is with the situation right now. you are seeing these prices rebound once again. at one point, they are going to say this is unacceptable. >> i think you will see the government make it very clear that there is deleveraging in place. we see the price will remain very stable. yvonne: actions have failed in some of the cities. of land plotsnt are not sold. the mostk that immediate challenges for the is actually for the debt maturities going forward. you could see for chinese developers, maybe find a challenger to refinance.

possibly?t prices >> potentially if you have. rami: looking at what is happening in terms of the trade see that industrial and office sectors are going to see the biggest impact. tell me about this. >> when you look at the trade issues are tensions, they are quite close and they moderator from the bottom up. if you look at the most vulnerable sectors, it is in manufacturing and the housing sectors. we look at our clients. they are telling us that they are looking for alternative locations. vienna seems to be the favorite. they have been looking at alternative locations for such a long time. are justrade disputes a catalyst for them. in my view, trade war is not something we should worry about. i think the most urgent issue we need to face is a maturity issue

on property debts. there is over $100 million in terms of property debts and into the happen. marketsat your risk of is slow. to me about this. >> i think it is really low. i think the majority is around $110 billion. at the funding, bank lending, a tighter regulation. shadow banking, nonexistent anymore. development.ns of a gapore, we do's have and of sectors but also, a great of opportunity for a lot of investors. you are veryure aware of this one. it is the divergent so we've seen between the first-tier cities in the second and third

and how we continue to see this one you quite a bit as well. we see this kind of massive effort to clear outs slumps in the smaller cities. do you see this actually widening? it is the case. i think they will continue to be really resilient. they will be facing some challenges over some prime issues. therefore, i think the cap is going to remain. clearance program is expected to end in 2020. yvonne: how big of a risk is set when it comes oversupply? >> i think that is the reason that you see debt for developers is going to be very challenging. the new supply is probably going to be a lot so with them we have seen over the past two years. it seems like a smaller

developers are going to be the ones that are really left holding the ball. i understand that this also presents opportunities in terms of emanating. i thinkhose developers, we will see that there is stabilize to look at real estate investment. debt.t the district's think there is around 50 billion. over the next two to three years, they yielded 15%. two, medium-size developers want to scale up. they will need the funding. they will need to finance as a result, it is a great opportunity for investors to tap into the spaces. rami: looking ahead to july home prices, we are expecting 5.1% for the most recent month. a look at some of the stories trending across the bloomberg

universe, note nine versus iphone x. but all the phones. it is a battle, we to try to figure out is happening here. apples flagship models. the cofounder says the crypto ecosystem is stronger after the past years bubble. it has been a brutal august so far for the world's biggest digital currencies. tick-tock, meet the 27-year-old fighting for hong kong's independence. activists speech on tuesday. check other stories and more training on bloomberg online or on the terminal. this is bloomberg. ♪

yvonne: taking a look at japan, right now, we are saved down

about a 54% right now. we are actually saying things to -- turned negative in the last half hour or so. we are expecting a quieter session with this turkish turmoil. let's do a quick check of latest business use flash headlines. copper fell to a one year low. the two sides agreed to extend talks into wednesday. this is an attempt to avoid a second strike continues. copper is often seen as a barometer of economic growth. they turn out about one million metric tons of the middle each year. china investment corp. is set to be backing up a potential bid. the part of a consortium with phil house capital that is

considering a buyout. the group they take the chinese own or private before potentially reenlisting in hong kong at a later date. now, china shares have fell in more than 10% this year. ramy: singapore state investment firm hast completed a total sell down of you assisted banks. -- it is distributing itself from u.s. letters. contact, another new economy investment but chinese banks remain a priority. expansionary fiscal policy may threaten a recession in america. earnings toting of tell you about tencent is still in focus. the latest casualty as the u.s. traits that. mainland reports have dropped. tears will get war on what happened with w h group next this is bloomberg.

-- group next. this is bloomberg. ♪

yvonne: it is a: 30 in singapore. we are an half hour away from opening. markets are a little more calm. seems like a contagion has invaded a bit. i am even -- i am yvonne man in hong kong. ramy: let's get the first word news now with jessica summers. the white house says

president trump's expensing great frustration in his dealings with turkey. the deepening standoff has seen the lira lose a quarter of its value this month alone as washington imposed sanctions enters. president erdogan has felt to boycott electronics and says turkey will not be pressure on. the president has a great deal of frustration on the fact that the pastor has not been released. as well as, the fact that you other u.s. citizens and employs a diplomatic facilities have not been released. we will continue to call on turkey to do the right thing for those individuals. is toer: indonesia restrict imports of capital and consumer goods. policymakers are selling dollars from reserves and they may be forced to raise rates again when the central bank meets later today. the rupee is among asia's worst performance since the emerging markets selloff began inching.

-- in january. india's trade deficit widened last month to the most in five years. a hit record low amid a selloff in emerging-market currencies. the $18 billion shortfall was field by higher oil prices and compares to a 60.6 billion dollar deficit in june. it weaker rupee is positive for exports proposes inflation risks. the health of 70 for the first time ever. harley davidson is pushing back or of what it calls misinformation surrounding plans to move production overseas. it has been a target of president trump's anger since it said it would look abroad. on sunday, he tweeted they he supported a book on of the company. are the invest overseas to let it be price competitive. global news 24 hours a day, powered by more than 2,700 journalists and analysts in more i am120 countries,

jessica summers. this is bloomberg. yvonne: we are drifting lower here. such i am just for the occasion. so much for a relief this wednesday. the nikkei declines even as the yen is on the retreat. the most inweighed tokyo. south korea out for the count for this holiday. anxiety continues with currencies. earlier, breaking about 4/10 for the first time. the drop in on prices is not helping the case either. the kiwi is trading at a february 16 of and aussie is headed for a fit day of losses ahead of data that is expected to show wages stagnant the

second quarter. does --d see the aussie decline at the lowest level in 19 months. earnings season ramps up, let's say a look at some of those movers in sydney. i would like to highlight the likes of tech group which is losing ground. that moves estimates down below fits 17 percent. another group's jumping in sydney after seeing a pickup in profit. posted in part by a evaluation of the retirement assets. also, want to run tire wesfarmers. reporting a 58% drop in full profit. in japan, we have some movers. sukuk on the following compared is a growing concern at the bank. also, citing earlier by as much as 4.9%. paper reportso that the industry watchdog is considering a partial suspension of its real estate loan operations.

as 18%. if up as much that is the biggest decline since its ipo. after reporting an operating loss in the first quarter. talking more on earnings now. imports by china are declining amid the escalating traits that with the u.s.. hasumer product analyst been looking at this. julie blame the trade war on what is really hitting the group? >> since it is one of the aspects that it is important. the trade war is impacting. shipments from the u.s. to china in the first30% half. part of that is a trade war. also, it is improving supply demand dynamics in china. we have lower domestic or prices in china and that is also making the u.s. less competitive even if the trade war was on. tensions wrapup

even further. to have to adjust their strategy little bit. maybe, distribute a little bit away from china? >> if we look at the first half of the year, they are focused on exporting more to south korea, japan, trade was assigned, demand for animal protein, whether it is pork, chicken, or, continues to rise. it is a matter of trying to find out where they can ship it. that is one of the big things that hurt the group's time around. they were not able to get the pricing that they may have been able to get in china and also, more expensive logistics to get it out to those markets. if consumer confidence slides because of trade tensions, is that a vigorous to their business? you are absolutely right. that is one of the bigger challenges that they face. if you think about the group come up their higher margin business is actually their packaging business.

several hundred basis points higher than other segments. that is a premium product. if consumers are less confident, they stop trading down and start buying these package sausages. the premade meals. that has a bigger impact on their profitability. if they want to retain those customers in cut prices, they run the risk of damaging the business. while longer-term by damaging the brand equity. if the sentiment is causing customers to trade down, what can they do? what can i do to protect the profits? >> a couple of things could help them right now. we think about the package meets business. they should see margin expansion in the second half. they of lower raw material prices. also, they are doing a better job of managing costs. one thing in the u.s., they want the program to help them lower cost.

it is a bit of a boosted margins across the entire segment of their business. they could manage the vertically integrated model and geographic diversity to minimize the impact as well. then, they also get a gift from president trump as well. with midterm elections just turn the corner, if it moves him to go out and get a deal on potential trade deals with mexico. if that pushes put prices up in the u.s., it provide a boost to profitability as well. ramy: the latest on story and saga. trader,ng commodity noble, reported a net loss of $120 million in the last quarter. have expect whether $100 million on that on restructuring expenses in the first half. allegations of improper accounting, and rejects. joining us now is asia metals

and mining reporter in singapore. this result seems to be in line of these come up with what noble nra signaled. they had a profit warning at the end of last month. this is pretty much as expected. i think as you pointed out to send, one of the interesting points is a restructuring of expenses in the first half which came at 114 u.s. dollars. that includes about 36 million. as he stripped that out, you get an operating profit from supply chains of about 70 million u.s. dollars in the second quarter. they are making some profits out from the underlying business that was driven by metals, minerals, and oils. looking good, they are still want to put forth. yvonne: what osha be looking for

for the next development. is it more so much focused on the restructuring of? is still plenty of uncertainty going forward. shareholdersis a meeting in singapore on august 11. stockholders will be asked to approve the restructuring that has been rather problematic up until now. we have to of independent financial advisors commissions. more than 30% of the shareholders haven't given the data. signal of what is at stake, they came out with a report and said if the rescue deal foster, they see it as little as 20% for the debt. to playquite a lot of for. the restructuring will be completed by the end of the year. mining asia metals and

reporter joining us from singapore with the latest on mobile. coming up next, how low will it go? of ant investors take old billion dollars stock drop this year. this is bloomberg. ♪

ramy: this is stupid asia. -- this is daybreak asia. yvonne: tencent earnings come out later on today. he has been a trying time for the company which only recently was the darling and asia. take a look at my return here ways onhow much this the tech sector in general. we have seen when hundred $50 billion of value walked out in the stock since hitting the week in january. we are expecting the stock to fall 25%. is forcing investors to consider where the bottom may be

'\ slowing.will also show we are talking about the results do later. >> like you have seen in the market dream much all of this negative sentiment has been priced in. i guess what they question investors really are asking is where the bottom is. we are seeing addictions for revenue growth is slow since 2015. expectation has been so since 2012. at veryl be looking closely their plans for the games. call duty, these games, when they want to publish seven '\ what is interesting here, is regardless of what is happening with fortunes of this company, analysts have still

been unfazed. there are still 55's and whatsoever. what is going on? "bloomberg daybreak: asia >> i think -- >> i think what we are seeing is a short-term makeup of operations in the company. inyou look at their game pipeline, it is not that they have missed out on the key hits come up they still have distribution rights. we are really saying, is it cameary level event approval us and china have just not been coming through. there has been a massive freeze overall in industry and that is hurting gaming companies. thing that weerm are going to continue to see. ramy: the approvals -- yvonne: head of and asia internet research at citigroup joins us here in hong kong. most, iserns you the it more of a global tech selloff

whether setbacks? >> in terms of fundamentals, is really the regulators. ofy are beyond the control the company and i think, if we look at the reasons why, it is actually double or triple. that when tencent decided they wantedrmally, to ensure it was very smooth run. they actually put a lot of the real -- resources into the skin. delayed, was to push off some of the other games. then, the scannell, cannot monetize. yet, you actually take away a and then youers have a little bit of an impact. the other thing is, the other

games have a plane. all of this is impacting the queue. on what you are hearing, placing the drag continue into the third quarter where we see things improve? i think for new games approval, it will continue. it seems we have not heard anything that has not previously gotten approval. , i think we actually see tencent start to release. those of the games that they previously got approval on. aggressive a quite promotion of some of the new games that they of lunch recently. the ftse that game grossing linking is actually pushing up quite a bit for the tencent games on the top 10. yvonne: timing wise, they have lost a lot of ground.

not too worried about it because first of all, they actually already had to users for it. i think as long as they keep the user engaged on the games and then, gradually, good approval to monetize, that should actually start gradually to really show the interest. ramy: i want to ask you about gross margins. library forhe gtb our bloomberg subscribers, here we are at the start of 2018. gone are the days of higher gross margins. >> i guess, if you look at the there will be,

higher portions of the lower margin business that will be contradicting. components especially, on the outer revenue. the margins,t there are also different moving parts. that is revenue which is the video. all of this has much lower margins compared to the game business. it is the landscape of android phone. it is also raising. the investors that i have talked to have expressed concern losing theirs are core focus. do see that as an accurate observation? to disagree.

i think they are still focused on their core business. their core business is the entertainment region. alicia: fighting games on literature. the second quarter as their social media platform. then, if you look at all this investment, it is when they are leveraging the user base, how can they actually continue to leverage the platform by utilizing the traffic to their business partner. invest into car writing and all of that and they started to have the retail businesses ball. all of this is just empowering the platform the user. it makes you wonder, they are spending so much on investments just a try to beat up alibaba in this rivalry. has a gun to tencent now?

better thanmuch tencent. who is actually winning out in this reverie? -- rivalry? haidi: i do not think it is -- sophie: i do not think it is determined by investors pared have not been through a tencent has been through with this regulatory hiccup on the game approval. they also have some margin issues himself. growth is actually slowing down. i think it is probably not related to the investment. >> what do you think of their advertisement strategy right now ? what kind of performance show you expect? >> they actually have a lot of

from to grow for advertising. i think there is still a lot of cash and in terms of managing the balance. in the meantime, they can actually monetize other places. the establishments of the many program actually help them to gain increasing and did not have to really push towards the moments. yvonne: this was a cut from your 524, are you going to have to readjust remodels targets in/ -- targets again? i think everybody is waiting for the numbers to come out and i think for people to

expect and will be quite week. at, despite, a lot of us cut our number, this consensus number still seems quite high. i think the tone that management will convey will be quite important to see if they actually show confidence in the for the comments and views on the revelatory side also. from bloomberg news, talking all things tencent we've teamed up with twitter to launch tick-tock by twitter. live video coverage and hourly updated tub news reports verified by us. if you are on twitter, make sure to follow to talk. -- this is bloomberg. ♪

yvonne: this is daybreak asia. the highly anticipated movie, crazy rich asians, hits theaters on wednesday with potentially, industry changing impacts. i actually got to see a snake preview last weekend and i have you to decide.to it is a first foam and 25 years at features and all asian cast. he explains his role as a deceptive producer -- executive producer. the buzz began even before

the movie came out. all of the studios and producers came out of the woodwork and were interested in auctioning the movie. nobody came up with a deal that i was happy with. >> what kind of deal that you want? >> i wanted to be part of the movie. i found the net jacobson. reporter: hollywood is the tories foretelling report -- foretelling authors, do not change anything except, a larger list of things. there was a story that one studio wanted you to change the protagonist to a caucasian woman. is a true? the heroine of the book. reporter: how could the story between to what was? yvonne: those crazy rich asians

author and executive producer. the film debuts later on this month. i am really glad that they stuck to the true forms of the books. really jealous that you certainly are releasing the movie. ramy: i have to say personally, i have a really high bar going into this but the representation factor, if this does succeed is a movie that is related to pull to a lot of folks and personally, i think it does. it could have read notifications, economically and financially for these companies. if you are interested, you will have to decide for yourself. tomorrowopens officially. yvonne: 25 years since in all asian cast. we are drifting after this turkish turmoil has updated a bit. this is bloomberg.

♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots.

and it can be included with your internet. 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. rishaad: asia pacific markets on the slide as the calm drains away. turkey with neither side ready to blink. president recep erdogan saying he will not be pushed around. young china enjoying a bounce on reports of a potential bid to take the company private. up, thecoming portfolios of some leading investors. what is attracting the big hitters. this is "bloomberg markets: asia."