countdown. and china to tariffs on billions of dollars of goods on both side. the bellwether says the u.s. will be the big loser in a trade war. -- anall of that points to

age-specific markets. :00e are just passed at a.m. where we are two hours away from the opening of major markets. willer this next hour, we look at the past weekend. recap, we canuick see the risk was definitely on in the markets. up by about a third of a percent. in a fairlywere up broad rally. all this has to do with some thetivity regarding shippers between the u.s. and china coming together.

let's get you up to speed with where we are. of -- crude above the handles that have been hanging out of. up. futures catching that.$10 shy of >> earnings continue to go forward. you have the whole symposium. let's take a look at how we are setting up in the early session. the kiwi dollar and all the -- aussie dollar's were the beneficiary. futures looking pretty positive.

we're still trading at about 10 in half yield high. a pretty good weekly performance seeing that pretty massive decline. really no signs of a circuit breaker. also, going into the opening of trade -- trading with china as we continue to give developments. let's get the first word news in hong kong. people have 800,000 been displaced and at least 350 killed in india.

man flies have triggered an it is a sort -- is right homes and roads. nearly 10,000 people rescued monday. island cut power in bringing down more buildings. it was followed by a series of aftershocks. and nearly 100 houses were severely damaged. need time government is pressing of where aplans bridge collapse to last week. the company must compensate the victims and rebuild the road. they have already offered more

half $1 billion in the area . malaysia could not repay and use it on on necessary infrastructure. they have suspended the project as an investigation into python deals in petroleum. we are not against having companies, but projects which are very costly. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.

is said to impose tariffs on a further $16 billion of chinese goods. beijing has promised to respond in kind. chinese officials will also be in washington this week. there any hope of reaching a solution? >> i think the word is that nothing major will be announced .his week it is the first high-level trade talks. it seems like it has been a very long time and it comes at a

crucial time, the second round and beyondthis week that, there is much more looming. take a deep breath and start working on something later in the year from president trump to president xi. >> the administration is going to the going through a lot of data and feedback, as well as groups pushing back against those. is there any insight as to if they will actually listen? timeis is the third officials have come to washington. there is just money coming up tomorrow. it is unclear if he gets through

to be administration and once possibly looming in early september, if you like the trump administration's targeted tariffs of the least damaging, by the time you get to the third is -- has really spread more widely. voices speaking to bloomberg which is massive. let's take a look. be passed on to other people.

>> what else did we hear from him? i think the reaction has not come through yet other than what the u.s. economy is doing. war, butning the trade when you have somebody like the , i think that way kind of message does not get heough to washington, so said the u.s. would bear the brunt of the tariffs. extent, things that he

shares get filtered into earnings calls and things like that and ultimately, must hide -- find a home at the white house remains to be seen. certainly, u.s. markets responded positively. how this weekee goes. certainly, a very key week in this. ruth carson has more on this. halt.e come to a

like ay for sounding broken record, but this is all about the trade war. u.s. base fun is morning -- asian currencies exposure that she overlooks in this is quite a dramatic change from a couple weeks ago. obviously, there has been reports of low-level talks resuming between beijing and washington. they're waiting to hear what is going to come out of it. else is right now? they are turning increasingly bearish on emerging markets.

it is not just because of turkey. hoffenheim refunds is one of .hem the underperformance of emerging markets are expected to continue of there are pockets optimism. it is not all doom and gloom. the economic fundamentals are really good. >> as the lookahead at what might be happening at the trade talks. still have come up with all talk more about u.s.-china trade tensions. undermineriffs could both. managerk a portfolio

what markets they will be watching and other central banks . this is bloomberg.

watching daybreak australia. traders are not convinced that the emerging markets will be enough to derail the fence planned rate hike. on what investors will she joins us from sydney. a big weekend ahead in terms of .entral banks how will that dictate where investors should be looking?

>> it is interesting. also, it is in the middle of reporting season. of course, the currency has recovered a little bit. the meeting of the central banks at jackson hole is reaffirming global growth for the coming wer and that is important as do want to see the continuation and so we will have to see what is taking place. it will be fascinating. >> we have some earnings coming declaring cash

we are expecting a little bit of outside pressure. they were coming off tough comparisons for the june quarter. when itme weakness comes to the retail segment in new zealand. that stock is still up your today. i'm going to head back to you. to ouring back , do you agree with folks saying it is time to the little bit more on the sides? fascinating. if used to be stocks that performed well when things happen when generating growth.

now, it is one of those examples in the earnings to the offensive. there is a lot of risk with is a stocks so investors need to take a step back and what you do with your cash? what you do with your money? >> i kind of wonder, is it time to wait back in emerging markets. that is probably a little bit of an understatement. is there more to come? >> absolutely. i think it is time to take a slightly longer-term view and

invests in the emerging markets. we see a lot of opportunity in those markets. >> tencent has fallen. tohaps, a bit more room move. very interesting in terms of growth projection. >> some have been disappointing. tech, but if like you believe in the future you have to buy tech. >> china related tech actually trading at good regulation compared to the u.s..

good riskyou very feel isor >> what you the biggest to that outlook? >> i think the real impact is isarged, but the impact trying to stabilize the currency . them doing more to try to stabilize and we hope currency risk will be somewhat removed. the underlying is still very good. >> going to happen to the bloomberg terminal. you can see the dollar is giving

iss and negative correlation at its worst. looking ahead to possible trade talks, how hopeful are you for a breakthrough in terms of where this might take the current the? >> hopefully, we ease the currency market or stabilization of the currency. it will put a lot of pressure in terms of debt. need to see that, otherwise we see efforts setting up to try and normalize the currencies. >> in terms of what might be out thee and looking at

, it has of the currency been strengthening somewhat, but looking ahead, where you think this is going to be? will come back because if you look at the hope -- value, we should there be any talk or ease of the trade war front, the helping to come off. to continue to come into play? >> that is a problem. we do feel it is incredibly expensive. on that front, you need strong economic growth to support that and we have yet to see the

evidence of that. thatconomy is not doing great as initially hoped as some of the banks have indicated. it is overvalued at this point. >> we do have cyclical names. i think we spoke about the aristocrats. you looking at double-digit earnings in this year's. you are looking at very good growth. favorites.e of my company is going to

benefit from the ever-increasing spending on that, so we think it is well-positioned. in terms of earnings, it will be challenging. >> remember, you can browse charts and save them for future reference. this is bloomberg.

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>> futures looking pretty positive. the market trading at a decade high. degreeser, currently 10 high. you are watching daybreak australia. >> the u.s. and china with trade trading rapidly.

beijing authorities said it is heading back. the tariffs are less to do with tode deficits and more support china's rise as a global power. week of families separated the war in the 1950's. both cash this week for union comes after a three-year halt. bowing to fix the economy and standout corruption. wrong has named him as finance minister.

sayspore prime minister his government will ensure education will remain affordable. they announced a range of schemes and what they call large expenditures. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. >> one of the stocks sure to be in the spotlight is tesla. thees plunged friday after new york times interview. they join us for more. last week -- now there are questions about it being

disconcerting or it >> what he saw as the stock draw -- draw the most in two years. how it performs on monday will keys onthe one of the friday. the reporter said he actually that cause the subpoena and all this scrutiny. he indicated there was no review by board members after the tweet was issued. he also talked about late nights at the office in taking the heavy-duty sleep medication. prompted arrieta huffington

, a well-known media individual she came out and said working 120 hour weeks does not leverage inequality. she said you cannot power your way through. was ano said this inefficient way for them to conduct himself. he said he will continue this work style. if you look at how the stock has forormed, it really is in perhaps much more scrutiny based on the latest concern and more calls to do something.

>> a lot of pressure to do something. is tornow the board between the fact they are very close to thet are iconic visionary. he is the ceo and founder of tesla and the largest shareholder. vicar picture. you see the stock has, along way. has also been reports from that tesla isimes seeking a clo. .here is no active search they have not had one for nine weirs -- nine years. they are interested in looking for more senior talent. what kind ofis,

action do they take. ceowould they range in the who has been so active and said he will not change his ways. there are many who say enough only runs tesla, but to others. it a possible for one ceo to run for different companies. that is likely going to be a very big topic. >> thank you. been meantime, let's get you a quick update to trading in new zealand is just getting underway. the kiwi dollar and the aussie .ollar the biggest beneficiary just one more earnings report coming out.

let's take a look more probably. 11053holding at that level. theo and the trade between u.s. and china. a lot of brexit talk taking place in the 10 year yield pretty much unchanged. more from out of you. usual kind of business as ? prettyink last week was

interesting. markets got pretty hard. u.s. continued this the virgins from the rest of the world. shows records at the s&p 500. the context of this is going .nto the jackson hole meeting bond traders are certainly betting they're going to .ontinue

having come off a really stellar starting -- on a season, while vacancy is when we get extreme positioning, treasury is continuing in the treasury market. we did see a bit of a followthrough. equities, at chinese the market is down. , ising at the currency there any reason to suggest we are seeing any return to stability. >> i will pronounce the depreciation. all indications are there is some policy action.

it is clearly significant and the difficult for the equity , we're talking about the shanghai composite. is what islty there happening in the current the throughll follow because it is a regional driven market. is pretty steady and certainly equity traders are hoping to get another day or two in the equity market. some of the charts, more earnings crossover.

$879 billion is what i am seeing. just going to get some clarification. there expecting it to plate. less.roduced 58% or we do know it will need higher or stricter compliance. we watch as they get into it every day. a look atlso take

analyst recommendations. ever since the middle third , analysts have lowered their price target. ifwill be interesting to see this gets a response once the share price starts training. can this week's trade talks ones in china? this is bloomberg.

you are watching daybreak australia. there world's biggest shipping willnies and u.s. economy be hit many times harder than the rest of the world by the global trade war.

his own company has not been terribly affected. the tariffs on steel and is important for threatsave not seen any at this point. it is really hard to judge what the impact will be. up, irse, tariffs go think the first section of the the origin and the increases can be has to to consumers. other people we have seen of impact in the next

three or four months. -- if it escalates, of course it will have an impact. some more earnings the final dividends 0.0. with take a look at the trade. we're joined by the university professor. the talks about potential lower-level meetings that led on this proper?

>> probably not. i think it is important that talks no one, but i don't think other side is coming to a compromise position. is the chinese side is not going to accept, but i suppose talking is better than not. we are going forward with the tariffs. strategists has said both sides -- you are >> i think both are in relatively weak positions. feel as if they can give up too much at this point. they are in some corners.

i don't see a lot of positive change until perhaps maybe the midterms. >> on the chinese side, a lot has been said. there have been lots of pressure points which you may not have seen. is there actually pressure on the leadership? has been said about this consolidation of power? think it is simply inaccurate. he has a lot of enemies. those challenges of love, it will become more evident.

that does not mean he will be toppled. that, in terms of the trade war puts them in a very precarious position. i think his position would be to be more hard lines. fart is interesting that so , it has been matched by beijing, but it has not gone past whatever threats. we know beijing can swirl emotions in the country that have not been seen yet. is this something we keep optimistic for now? >> if the united states does should, i think we .xpect a tit-for-tat reaction

kept muchin on a has of this news about the trade war ashin china itself because thetariffs slowdown, leadership doesn't want to take a lot of responsibility for that. in the near term, she is probably safe, but i think we should expect some retaliation of to the $16 billion level. >> if they were to find some medium, what would be that line? we win for both our constituencies and save face. >> one positive area would be to go on record

and could include opening the domestic market to greater foreign ownership. the weird thing about that means the u.s. and others will find china more attractive beaches presumably what trump claims he doesn't want to see. there is a lot of mixed messaging coming out. that could be a win that could claim. leave something for place like australia .conomically and strategically

>> they once the two sides to calm down. it is the number one for australia, so think there will be a lot of pressure to subside that itna to the degree lies within the united states. is theng forward american market getting shut out. we're going to see china looking for other points in that will increase pressure and will mean a great deal more coming towards australia and other economies which may lead to further pressure. it is not going in a good direction at all.

>> it was great to have you. this is the monday edition. terminal onethe occurrence of the trade story, it is also available on the mobile. this is bloomberg.

>> welcome back. .e have a slew of earnings we want to recap some of them for you.

that was a clearness. was $.18.expectation >> we want to get more on aussie earnings. take a look at what has largely been a mess. we are starting to see a bit of as aure coming through result of the trade tensions. >> in just a couple minutes time, first half earnings. the ball press rally from the second half at least for now,

we're going to ask what does this all mean moving forward and how they can take advantage of this growing u.s.-china traits that. >> meantime, we will be taking a look at currencies and the asia.ive director from of course, we have been talking so much about what is happening to the lira. we will also take a look at what is happening with the yen. also, continue to watch the tech sector as well.

is this another chinese tech name, taking a look at expectations. this is bloomberg.

♪ we are live from bloomberg's asian headquarters, i am yvonne man, welcome to "daybreak: asia." the u.s. and china countdown to tit-for-tat tariffs. we will see billions of dollars of goods on both sides. washington is warned against further escalation. ramy: i am ramy inocencio in new york, it is just past 7:00 p.m. on sunday. markets set forth a mixed and muted start. traders looking ahead to the meeting at jackson hole.