♪ >> stocks fell and the dollar rose the most in two weeks as trade issues bubble up again. , it is coming under renewed pressure. china wind upd low-level talks with president trump signaling he is happy to press ahead with the trade war. forex watchers say the aussie may fall to a two-year low of $.70 as local turmoil threatens canberra. >> in business, finance and all it takes await jay powell's maiden speech at jackson hole,

we are alive to wyoming. >> hello from sydney, where it a.m..t past 8 this is daybreak australia, two hours away from asia's first major market opening this friday. >> and it is just after 6 p.m. here in new york, i am ramy innoncencio. we will be looking at how the action in wall street will play into your asia-pacific trading day. let us get straight to the board to remind you of how we closed today. a simply 500 down by nearly .2%. mild falls across the board, but a fall when you look at the sectors. sensitive sectors fell the hardest, for example, materials, energy and financials. donald saying basically that he is committed to the trade dispute with china. also, u.s. officials laying down the possibility of a major announced meant and donald trump wanting that if he is impeached, in regards to what is happening in washington, that the

stock market will crash. haidi: obviously, a lot of negative factors and goal from overnight. here in asia, in my part of the world, a great deal of uncertainty, not the least of which is whether australia will have a new prime minister in about four hours time. kiwi stocks are seeing a bit of weupsurge, 60's .36, then have the bloomberg dollar index rallying, the dollar rallying the most in about a fortnight and snapping the six-day losing --eet we are seeing we are seeing a downside from that of course, due t in the asian currency. the aussie dollar looking like it will become the victim. it took a tumble yesterday, this crisis of leadership may perhaps turn into a crisis of confidence.

somebody mentioning that we might get to a two-year low by the end of the year on the aussie dollar. trade disputes, they played a pretty major role in the market decline, the second in a row for the s&p 500 despite the early record high this week. bloomberg su keenan has more on this. really defined the trade talks taking place in washington, there is very much a download over whether we will have any progress here? su: yes, there is a question about trade waiting on the market. strong,ot see tech dollar moving higher, snapping its losing streak, and of course, the nasdaq snapping its streak. what we have the nasdaq 100 there, you can see, it is a very tech heavy index, but it is slightly lower. notice, the chip sector is higher. we will talk about that in a minute. earnings were of mixed bag. brands, the parent company of

victoria's secret, they slashed their forecast this week. u.k. steel, affected by markets and its, chip stocks have been very volatile recently, moving higher time frame.t as it really mentioned, material hit.s were let us go to the bloomberg gtv, where you can find these charts. this one is related to something really said about the remarks from trump, if you were to impeachment, stocks could drop. world, has been more heart like -- more hurt by trump than we have. [laughter] tesla is back in the news also, but as a positive? su: real quickly, it looks like we are hearing from someone close to the market, market

stanley looking at a possible go private bid, and go micex has also been hired by the billionaire, -- goldman sachs has been hired, not other by the company, but by elon musk. he had to reveal that he had not secured the funding to go private. ramy: really interesting, when you take a look, the stock down 17% ever since he said that. that as get the first word news now. >> ramy, the u.s. and china wind talks with no expectation of meaningful progress. the two countries hit each other with new tariffs, taking the total value of its targeted in the trade war to $100 billion. the administration says they sourcesp talking, but tell bloomberg that the chinese team seems to have brought nothing new. president trump says there is no justification for him being

impeached, but he warns of a blood on the markets if it does have. he says he cannot see how he could be toppled for doing such a good job, adding that ordinary americans would be hit in the pocket if he was forced out of the white house. u.s. equities are in the middle of the longest bull market on record, boyd by his -- helped by trump's tax cuts. >> i think the market would crash come i think everybody would be very poor, because without this thinking, you would see numbers they wouldn't reverse.n >> a new report from the oecd suggests that u.s. gdp growth will surpass that of china by 2040, but china's economy will be 77% larger in dollar terms at the time. the long-running scenario says the u.s. and india will pop laces by 2037, as the world's economic might switches to asia.

china and india shares of the global economy will be larger than those of the oecd countries combined. forex watchers. say the aussie dollar may fall to a two-year low of 70's hands as -- 70 u.s. cents. prime minister malcolm turnbull of australia is clinging on by a thread as rivals lend up to challenge him and ministers quit his team. he's australia's sixth prime minister didn't thousand seven, saying that he will step aside if the opponents have enough support to unseat him. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am jenna degen heart. this is bloomberg. haidi. haidi fish jenna, thank you. let us get to our top story. policy makers meeting in a jackson hole for the fed's greet.meet and

the biggest risk to the global economy, trade i am sure, will get a mention. kathleen hays is there for bloomberg. kathleen? kathleen: haidi, thank you very much. i am joined by the governor of the reserve bank, previously serving as deputy governor. rbnz, hey years at us sovereign wealth fund, and he's here to talk about what is going on a jackson hole. , and of course what is going on at rbnz. one of the things that we will from jay powell tomorrow, is the economic outlook. what is your assessment of the global economy? would it support growth in new zealand, or is it more to the downside. >> we have been optimistic at, i should say.

growth remains strong, despite all the headlines around trade wars, but they would have to become real and very vicious, because it can affect new zealand significantly. a lot of our products are either directly consumed or going into construction, that we export particular lead to the asian region, so we would have to see incomes fall quite significantly before trade was impacted. about,is thing to think and we are well supported by the moment by a strong exchange rate and terms of trade. : what are you most concern right now in terms of new zealand's economic outlook? adrian: the biggest challenges getting wages to rise. we have been below the midpoint of the inflation target for a couple of years now. to 3% for ann 1% them, and we have been at one

point 5%, so we continue to support through easy monetary policy. our biggest risk i would say, is business investment. business confidence ebbs and flows at the moment, and it is point.ow at a low we don't really understand why, we have had a change in government and the conditions are perfect for investing and trading. ?athleen: trade war escalation emerging market volatility? those are issues facing any country in the world right now, is that some reason for uncertainty? doubt, buthout a like any point in time, there are some things you can worry about at the beginning of every forecast period, people say that usual.ore uncertain than no, it is not. it is always uncertain. you have to look at the fundamentals. in new zealand, very good fiscal policys, good monetary come a very comfortable exchange rates, it is a good story. revelation growth also.

but we also come from a very strong period of population growth that is easy now, and we are shifting from consumption to earning. kathleen: you mentioned low inflation as a good income of that we also know that sometimes, it is a goo bad thing. to a certain extent, we can because whenrian, you weren't deputy governor of the reserve bank of new zealand, it was the first central bank go to inflation targeting. you wear the blue. print for what a lot of central banks adopted. some people word about inflation being too high, and wanting to bring it down, that we have the problem of where it is too low and people want to bring it higher? adrian: that is fantastic, bringing that has actually assisted the world to understand what monetary policy can and cannot do. inflation, it is positive inflation rates that people target globally, because you need a little bit of that oil in the wheels.

we've had falling tradable inflation, because so much of the world has become open to trade, and there are certain prices for certain commodities. for our country, imported inflation has been negative and falling, and domestic inflation has been positive, and when you add the two together, it is positive and stable. from all around the world, our diversified. about 15% of it would be from china, but certainly from the west coast production around the world, we have seen it shifts since the beginning of the industrial revolution from the united kingdom. kathleen: back to what you're doing right now. inflation, it will not which 2% until 2021, you have that.sted how important is it to get it to the midpoint now, and what would you do? what, cut rates, how would you do that? adrian: we are certainly going

to hold it low for a long favored of time. we are in no rush to raise -- a long period of time, we are in no rush to raise rates. the exchange rate will have to support our economy, but we don't move out a cut if we have to. our task is to use a full range a cut ision, and certainly on the table, as is a hike. a wonderful position is that we can watch the rate for a while. kathleen: that is your job as a central bankers certainly, i think he said that in the past. let me underscore that, then. you are acknowledging the fed in particular is tightening policy, and we may hear jay powell signal that there are a couple of rate hikes on the table before the end of the year. we have seen emerging market currencies get hit. after your surprisingly dovish statement, are you on board with that comedy will come that, that a weaker currency could help you

exporters? yes, it is a critical part of the mechanism for a smaller economy like new zealand, and i have been very pleased that the exchange rate has reflected nothing then inflation differentials between us and our partners. a good place to be. the worst places when you get momentum going in the wrong direction. at the moment, i am very, very pleased with how that exchange behaved. kathleen: you recently adopted a dual mandate, not on the inflation, but also unemployment. how are you working down that path? here are jackson hole, you will be talking to all the current and former fed officials, asking them how to make this work? adrian: the great thing about being here is that you have so much wisdom in the room, and we have plenty of time to end with each other. be buriedwe will not by too many academic papers, and we can actually talk this stuff. we have added that to the mandate. we target inflation through and out but gap, and a key part of

that output gap is the labor market, so we have an explicit goal, where we are trying to contribute to maximizing sustainable o employment. aboute a lot to learn, what we as a central banks can do to assist to the way we are doing our policy. i think we are asking just about everybody here at this symposium this question: president trump has been complaining about fed interest rate hikes. some people are concerned what it could mean for central bank independence and the path of rates. but more broadly, the central bank, it has been a large part of your vocation, your life. does this raise concerns for you? adrian: i think it is very critical that central banks are left alone to the be operationally independent, to achieve the target that society has chosen. democracy chooses what the target is, and then you operationally independent to get on with it.

when that comes apart, you run back into the good old fashion stories of stagflation and policy.tency with our own legislation is open at the moment in new zealand, so obviously, that is interesting. making sure that operational independence remains just that. kathleen: a quick question, what you see on the horizon that could prompt in your term rate cut -- a near-term rate cut in new zealand falling output through business confidence getting lower and feeding into the human psyche, i think that is a lower probability, we think we are pretty easily balanced. kathleen: thank you so much, adrian. so happy to interview you know that you are the head of the reserve bank and in new zealand. adrian: wonderful. kathleen: we will have so many of these other conversations here, when you so much to the table. back to you. haidi: kathleen come great

conversation there, thank you for that. earningstting this company getting growth of 22%. up 3.25 the business is -- up 22%. estimates were 23% for aia group. fundamentals in asia micro speaking, are pretty resilient, despite all of the international trade tensions. turnbull's, malcolm political future hanging but a mere threat. we will have the latest on the turmoil here in australia and how business leaders are taking it all in. ramy: and up next, president trump phrases tariffs on tech, saying that it has led to economic gain for the u.s.. we discussed this with our next

guest, coming up.

♪ ramy: welcome back. the u.s. and china are unwinding two days of trade talks with equally low level expectations. 60 two countries slammed billion dollars of fresh tariffs on each other. let us jump into my bloomberg here, the gtv terminal library, this chart puts the tariffs into perspective. the headline here is the $15 billion of goods with the tariffs currently in place, and the 16 billion that happened overnight. the yellow line is the $200 billion figure that president trump mentioned, taking all of that total to 250 billion. here to discuss the situation, peterson institute nonresident senior fellow mary e lovely there we had always good to have you here on the show. president trump says tariffs on

chinese technology have led to the u.s. chuckle economic gain. economic gain. do you agree with this? haslinda: increasingly, it will lock us out of the most markets in the world. i do not agree with the statement. ramy: one other bloomberg terminal chart i wanted to show you is a tale of local economies here. in the white, you can see that u.s. economic growth has been running, m meantime, economic growth has been flat. you say that this will get worse before it gets better. is this u.s. economic club something that really is one of the large quivers that donald trump can rely on? mary: well, it certainly has helped him at home. many people believe that the u.s. economy is strong enough to withstand the short-term noise that is going on. today, we even heard him say

that if he were impeached, the market would essentially tank. so there is a lot of hubris, i strong,he economy is but it is also the longest bull market, at the end of a very long expansion, and markets can deere off easily. again, we have to think about the longer-term, what this is doing to u.s. competitiveness and wages for u.s. workers. haidi: merit, it has been a common refrain that things have to get worse before they get better, that both sides have to feel more pain, and you have impetus to seek a compromise. how much further do we have to go before we can see a bit more willingness to come to the center? i think all along, we have kind of been feeling our way through this. early on, many people thought that the original $50 billion in tariffs that we have now officially levied, that those were left we have seen -- those were bluffs.

now we are hearing of another $200 billion from washington in tariffs. i think that they might hit china faster than the u.s., but there is more pain. and china still has the rest of the world to trade with, and the u.s. is having a fight with many of its trading partners, moving to be more reductionist in a ways.y of so we have to look at see what this is doing to the competitiveness of the u.s. economy, not just with china, but with all of its trading partners. haidi: you saw chennai yesterday saying that it is going to the wto, trying to resolve the trade dispute -- we have seen china yesterday saying that it is going to the wto, will that resolve anything? mary: the wto defense on members adhere to the rules it has set for its health. the u.s. is acting unilaterally and there was no every to go that.hat will, and stop

appealing to the wto a loan will not give china the relief it seeks. we will have to have some political settlement to disclose in the united states with our own domestic politics, and of course, through international diplomacy and negotiations. ramy: very quickly, the next big question is how long this situation will last. we are two and a half months away from midterms, and it seems like this have year, this strategy by donald trump is appealing to his swing voters? mary: i certainly think that is what he is thinking on. it we are coming up toward some potential tariffs on auto deals, -- hit think will heat american consumers very hard, so we will see how they like it at the polls. that, some of these tariffs if they go away, longer-term issues with china will remain, no matter who is in control of congress. ramy: we will continue this debate and discussion. maybe lovely, thank you so much.

still to come on daybreak australia. plenty more. this is bloomberg. ♪

♪ biz we are just getting some movement in the aussie -- the kiwi dollar, in reaction to our conversation earlier with z's adrian orr saying that they are not moving out rate cuts, and they are certainly in no rush to be raising interest rates. the kiwi dollar had been falling overnight on these trade concerns, and doma since to be doubling down when it comes to the trade war in china. saying that he is pleased with the kiwi exchange rate behaviors, helping economies in an export driven economy like new zealand. but he said that they are not ruling out a great cut. he said that they are evenly balanced when it comes to the rate outlook there. that conversation taking place at jackson hole.

coming up, prime minister position heading in the balance. another vote is coming up in a few hours time. we will get the latest on australia's political turmoil next. this is bloomberg. ♪ retail.

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♪ haidi biz it is a: 30 a.m. here in sydney. haidi: it is a: 30 a.m. here in sydney, through hours away from another potential leadership vote. supporters have been circulating signatures, we could end up today with a new prime minister australia. so there is a lot of uncertainty, bus terminal, equities are looking pretty relaxed at the moment. ramy: i am ramy innoncencio in in new york, 6:30:00 p.m., and we are watching daybreak

australia. let us get the first word news and analysts in over 120 countries. this is bloomberg. deck and heart. >> secretary of state mike sureo is wanting to make kim jong-un sticks to his promise to shut down the nuclear program. enlisted the help of executives to lead negotiations with pyongyang. he wants sanctions to remain in force, but says that there are signs that china has resumed cross-border links. bloomberg has told the bank is elon musk,ectly with to evaluate the idea of going private. morgan stanley suspended its coverage of the stock early this week without any explanation. the bank is among tech/top 20 shareholders -- tesla's top 20 shareholders. google has identified and terminated 39 youtube channels had thousands of views links to iran. it has also engaged cybersecurity firms and

other consultants to complement the work of its internal teams over the past two months. google says that the pages were learned to the state broadcaster of iran. cancelingrways is iran services, saying the operation is no longer viable.ally u.s. sanctions have dramatically reduced demand for travel from iran and the last outbound london flight will be on september 22, returning the following day. air france is also dropping its iran link, again, blaming weak financial performance. globaglobal news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am jenna duggan heart, this is bloomberg. id? haidi. haidi: we just talked about the

kiwi dollar, down, with adrian orr saying that he is not ruling out another rise in the rate. sydney futures are looking pretty positive, point 3% higher, that asset class has been largely resume into the political turmoil. that will continue to play out today in canberra. the aussie dollar took a tumble yesterday, and people are saying byt a drop to 70 u.s. cents the end of the year is not out question. we have adam haigh here with us, and if you lecture took a look at the fall off from all of the political paralysis and the crisis in canberra, it has been the u.s. dollar. >> it has, haidi. . >>we had this huge move in the morning, then the aussie really started to weaken. traders here in sydney who went home yesterday evening, it took

drop down. so sentiment is really harming the currency. this chart shows how the technical setup is looking very poor. i have a comment from steve miller, he used to run fixed income at rock rock and he is not over at grand central. he says, is -- he is now that she used to run fixed income at blackrock, and he is now over and grant some will. he says that the sentiment is really affect everything. overseas investors are just pulling back from wanting to have any exposure there, dialing back on the aussie. really across the board in one markets and the stock market as you alluded to, markets there are taking this move in stride, largely. the 10 year australian government bond yield hovering around two point 5%, equity

markets looking relatively resilient. of course, we have had some problems in the banks, that is causing a problem for equity markets, a potential eventuality that the labor government might restrictive on the housing market. but that is certainly the best case scenario for most people. ramy: another notable area of weakness is the euro, down about 8%. investors say, the selloff looks overdone. ?hat is the upshot here adam: we have gone back-and-forth this year on the euro-dollar, and i think this chart shows it ready well. i think the folks who are seeing this now, talking about how they would really like to be in the conversation, about those long euro positions. that centers around two key arguments. eustronger growth in that

region, relative to the rest of the world, talking about that are then he would expect in some other areas in the world, including perhaps in the u.s.. we have less political worries in europe now, and those things are. ramy: driving the fact that. ramy: you might want to get long on the euro bloomberg's global markets editor, adam haigh. do nothing get to check out our gtv library for some of the charts you just saw their, that is on gtv go on the bloomberg terminal. not to australia and the battle to become the country's sixth prime minister in the past decade, it is headed for a showdown at high noon today. paul allen is here with the latest on this political crisis in canberra, and possible implications. paul, what might we expect? paul: it is hard to predict, but you can think of it as a series questions., if 43 signatures show up on the

petition to call a party room meeting, and both will be called leadership.o search if the vote is called, the prime minister will not stand. so that means that there will be a three-way contest between leader gotten, the leader of the right wing faction that brought this all to a head this week, and bishop, prime minister and treasurer.son, the that would really appease the right wing of the labour party, if one of them gets it. do the rest feel that way? probably not. peter dutton holds the electorate by a thin margin. morrison and the ship, there are much more popular, and could stand a chance of winning the election, by went nuts appease the right wing. when of tony abbott former advisers -- that would not appease the right wing.

the phrase that strikes fear at the heart of every politician in the last year or so, section 44. paul: yes, we have seen many politicians, unglued at that. malcolm turnbull is not going quietly, he has been laying a few landmines as he retreats, one of them to call th to ofstion the viability peter dutton. a wants to see if he is even eligible to be there, and that could be referred to the high court. and that happens, this could drag on for months. also, if trumbull loses, that could be the end of the majority. one seat

what ever way you slice and dice these outcomes, this is a government on very, very thin ice, and with an election by mean next year, you wouldn't want to bet on there being a seven prime minister this time 2019. haidi: we will see what happens today and in the coming days, anything could happen, given that the last few days have been unprecedented. in the meantime, australian business leaders have been weighing in on all the drama as it unfolds in canberra. >> businesses are disappointment with what is happening in canberra. businesses want reliability and confidence and certainty, on how the future will be. despite all of that, we are seeing strong poster the economy, it is performing across the board really well, and there are good signs that the resource sector is rebounding for a well, which is important for the economy. >> the leader of whatever party, it is a matter for the party, but for business, when we are making significant investment decisions, as we have recently project, ahe rail

1.3 billion u.s. dollars investment in australia, we need clarity in terms of policy. >> the last few days, in fact, the last 24 hours have thrown the of the concepts in private sector is john comfortable waters, and that is not good for us as an industry, to invest. ramy: just some of the executives that bloomberg talks to on the state of play and trauma in austrian politics. in a moment, uncertainty is also at jackson hole. we will hear the views from j.p. morgan chase international chair jacob frankel next. this is bloomberg. ♪

♪ had: welcome back, let us back to the beautiful scenes at jackson hole for the fed's annual that together. our global economics and policy

editor kathleen hays there with another very special guest. kathleen: thank you very much, ramy. this is the 34th year that our guest has attended. jacob a frenkel chairman of j.p. morgan international, former governor of the bank of israel, chairman of the board of trustees of the group of 30. thank you for joining us. >> my pleasure, thank you for having me. kathleen: the kansas city fed picks something in every year. marketar is about structure, there was always an unofficial topic created by politics, markets, economic forces. this year, there are a couple. . one, donald trump, u.s. president has spoken about being upset with sai fed rate hikes. do you think this is a serious issue? jacob: i'm am sure the fed is

not going to depart from this serious issue, it will not depart from its responsible strategies, but it is a serious issue. frankly, it reduces. the effectiveness and credibility of the president, because, what is it helped to make statements when you know that they will carry no water whatoever the fed is doing it needs to do, it is guided by long-term consideration. attractiveolitically to bash the fed for short-term causes, but really, it will not change anything. it will only say -- why waste words, why waste credibility? i think it is damaging. kathleen: is there anything to donald trump's case that maybe -- some people think the economy -- that a flat yield curve could invert and be the precursor for recession, and the fed seems to be heading there.

is there anything to this argument that maybe trump is right? why would that be a problem? jacob: there are two company separate issues. an assessment about the state of the economy and what needs to be done about it on a policy front. second, how do you communicate what you feel these to be done? matter -- it doesn't matter what one feels about the economy, what should not communicate it in public in this way. coming back to the economy, the u.s. economy is doing very well. growth has picked up, the labor markets are doing very well and employment is growing, unemployment is diminishing, wages are going up, inflation which is its targets, what else do you need? imbalancesthere are in the pipeline. of course there is the issue of large debt, of course there is a issue of large budget deficit. however, if there is any attempt

to continue in the process of normalization, namely raising interest rates and creating ammunition that will be needed if there is a future turnaround, this is the time. kathleen: jacob, is this possible, a lot of people have made this comment that the fed, if the not trump keeps complaining publicly about rate hikes, may have to move rate up faster, or have more rate hikes just to move to investors that they will not be called but a present of it -- they will not be cowed by a president of any kind? jacob: we're not going to see a debate. that is not the issue. it is a people issue. if there is silence, even a whisper come be heard. if there is noise, you need to scream, and it is barely heard. by putting noise into the system , by making statements that are

completely irrelevant, that should not be done, it upsets financial markets. investors are looking at it saying, what will happen, as i? in order to achieve the very same object is, the fed may need to work harder. i don't expect it to happen, because i think the fed is on a steady as you go trajectory, and i am very happy about it. kathleen: another unofficial topic hanging over the conference this year is the trade war. months ago, the fed was saying, what should we look at at best when the kansas city fed was saying, what should we look like at jackson hole, they would definitely not anticipated this. billions of dollars have been drawn, more could be coming, would could happen? what do you make of this? jacob: the damage seen in the data, it will be too late. i think this is a much more serious subject then the

interest rate. the trade war in a world which is so interconnected, the trade war is another element of the attack against globalization. another element of fragmentation. in a world which is so interconnected, one needs to join hands, rather than argue with each other. i think that history shows, and it is not emphasized enough, that trade has produced tremendous benefits to millions for thee, especially poor. it has elevated with his of people all over the world, especially in emerging economies, out of poverty. however, there are of course, losers. they will have to be addressed, and they will need to be addressed through retraining programs, adjustment assistance, but let us face it. trade has benefited millions, that is the point.

we have examples in history of how tariffs here in the united states which were supposed to help the weak part of society, have generated may be the great depression. it is a very slippery slope. kathleen: i have a quick follow up -- 10 trump wins? what will it take china to reduce the trade surplus? think the trade surplus is the issue economically. the issue is intellectual property rights, and to address this, one needs to join hands with our allies, the europeans, the rest of the trading partners, join hands to deal with china. not to think of china in a way that is bilaterally and by the way, damaging our own allies. kathleen: 10 year anniversary of the greatest financial crisis. the lehman brothers crisis started it all. is it anything you are missing now? what do need to do next? jacob:'s first of all, the financial system is much

stronger. second, it is important that we change dramatically, the mindset from a short-term fire extinction crisis fighting mode, to a long-term economic growth and prosperity mode. this is the time. mainly, we should focus more on. long-term issues, on investment and productivity, rather than that-term interest rate, do not affect long-term productivity and growth. globalization, interaction, integration, that is the name of the game, rather than a separation and fragmentation. kathleen: jacob frenkel, thank you for joining us. have met so many years dealing with this topic, think you so much for joining us here today here at jackson hole. haidi, we have a lot more coming up. we will be talking to the former head of the reserve bank of india, and also the former policymaking board member at the bank of england. keep it right here, for now, we send affect you.

haidi: looking ahead and looking forward to that, kathleen. we are just looking at data crossing bloomberg. markedlyance that was narrower than expected, coming in at 143 kyrie dollars -- 143 million kyrie dollars to riyadh that was for new zealand. better thanso expected, imports also a little bit that are than expected at 5.5 billion cubic dollars. we're looking at the kiwi 66.20 u.s. cents just after the comments that kathleen got out of adrienne oro , the rbnz governor, saying that he is not ruling out a rate cut and he is also not rushing to raise rates. bloomberg subscribers can go to dayb on the terminal, to

see any of the news on the industries in the assets that you care about. this is bloomberg. ♪

♪ welcome back to i'm ramy .nocencio you in new york theus do a quick check of latest business flash headlines, shall we? china's largest offshore oil and or is to boost spending to the rest of the year as higher crude prices push half-year profit to its highest since 2014. they say in the first half was $3 billion less than the third of its full-year budget of about $11 billion. the ceo says he is very confident that the company will meet its annual spending

targets. nestlé's japan unit aims to move away from kandi and processed food to focus more on nutritional supplements, hoping to build a billion-dollar health would's nest within a decade. the world's biggest bit food company is seeing -- the world's biggest for company has seen increased demand area the ceo says the transition is a long-term plan. >> i want to nurture this enterprise into a ¥100 billion business here in japan. sales may not hit the 100 alien mark one i am in charge, but in a 10 years and, it is possible. waymo has set up a subsidiary in china, the latest sign to sidestep google parents alphabet entry into the country. it is called waymo business consulting. it has a capital of about $140,000 and will focus on the design and testing of self driving cars. google said last week it is. launch eight beijing

compliant search engine for china. ♪ they've requested it us morning, and yvonne and ramy are up next with daybreak asia. we will take a look at what is coming up of the next few hours. >> we are expecting a slight pickup in prices for the month of july, i will be interesting to see if we actually cross the 1% halfway mark to inflation targets, that is what is in expected when it comes to core inflation. fresh would prices coming out it 0.9%. conditions are right for prices to pick up. if you look at what we have been seeing with the positive output gap, wages are picking up, the labor market is tightening. will this continue? to on at guest: the chief economist of japan macro that.rs about

ramy: also, we will head back to jackson hole, wyoming, for the annual confab that happens in the beautiful serene mountains. we will speak to the former reserve bank governor of india between september 2013-september 2016. you may remember that he was also chief economist at the imf. will weigh in on what has been happening here with our own, kathleen hays. haidi: he has always got interesting things to say. former bank of england monetary policy committee member will also be joining a there with kathleen, so there is lots to talk about. and howconomic growth, policymakers set themselves up for that. of course, we had the movement of the pound, showing that exit could create some price rises when it comes to the united kingdom, in the aftermath. so there is lots to talk about their from jackson hole, our very own kathleen hays will be

joining us with a great lineup of conversations. you don't want to miss out on the coverage. on friday, we will be hearing from u.s. fed governors as well. this is bloomberg. ♪

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limited time get 150 dollars off and free shipping too. sale prices are available right now. go to buyleesa.com today. you need this bed. yvonne: we are from bloomberg asian headquarters. welcome to "daybreak: asia." asia-pacific stocks set for a mixed and for the week. wall street lower. sending the dollar higher. trumpwith president milling he is happy to press ahead with his trade war. ramy: from global headquarters, item in new york where it is just past 7:00 p.m. on a thursday. the aussie may fall to a low. not as political turmoil threatens chaos. politics