♪ >> the lessons from jackson hole , signals no change in rate policy. >> vasso talks may be poised through a break. mexico and the u.s. may have an announcement. >> steady as she goes. renews -- renew stability. for john mccain from both friends as well as foes. in national memorial service will be held in washington this saturday.

hello, from sydney. this is "daybreak: australia." we are two hours away from asian's first major markets. ramy innocencio. we will be looking ahead to how wall street will impact your asia-pacific trading weekend. any indicator of what might be able to happen, the s&p 500 ended on a record. 28.74 is what the s&p 500 closed that. up to 6/10 of 1%. this is its seventh weekly rise in the past eight weeks. leaders included materials and information technology, and energy. possibly getting a boost from jay powell's speech at jackson hole. his comments were interpreted as a dovish. on track, it looks like for a september rate hike.

on the order of the 60% hike. haidi: looking pretty mixed as we have japan and hong kong opening higher. we are looking at negativity closer to home. trading new zealand is underway. modest upside. the kuby dollar trading at 6695 to we had that move in the u.s. dollar index. wewas the biggest driver as have the pboc potentially coming in to provide more support for the yuan. that also led to more support for the aussie dollar. we have seen stability after the losses of last week as we look toward presumably a period of political stimulus -- political stability. asking a little flat there we going to the monday morning. let's get to your top story and australia. minister do not waste time unveiling his first cabinet over the weekend. it is an effort to reassure the nation after what has been a week of turmoil and political in society.

and johnson here. any surprises? ed: that's right. the new prime minister, scott morrison, not wasting any time. not letting aghast -- the grass grow under his feet. announcing mini cabinet. we have josh frankenburg. the new treasurer. he was the energy minister. test with creating an energy policy that precipitated last week's crisis. we have with the is coleman, he as finance minister, despite throwing his hat into the ring with the main challenger. peter duffin, who challenged last week and facilitated this crisis is back in as finance minister. leading thee job defense industry, and a new face there as minister for education. haidi: and julie bishop.

thatulie bishop announced she was stepping down as foreign minister. she is staying on the back bench to serve western australia but has not decided what her long-term profit -- prospects are and whether she will contact -- free do that election. haidi: thank you so much. a sense of stability after the turmoil that was last week. let's get you to first word news with haslinda amin. several people are reported dead in a mass shooting at jacksonville, florida. that was hosting a videogame tournament. police say one suspect is dead at the scene. it is not clear if there are other shooters involved. the sheriff's office warns people tuesday away from the area around the lending model. and you social media to tell others hiding in the long to wait for help. and mexico are said to be close to resolving their differences on nafta.

an announcement may come as soon as monday. bloomberg is told the two sides have achieved significant breakthroughs on the last few days on autos and energy, paving the way for opening the door to canada to rejoin the talk spirit president trump tweeted that could be a big agreement with mexico soon. the tesla drama turns another page with elon musk scrapping his plans to take the company private. hea late-night blog post, wrote tesla will remain public after shareholders asked him not to continue. tesla staying in public ownership puts the scrutiny back on the works out. the company's cash position and its ability to ramp up touctions of the model three meet analysts costs. a rare for ari has set a new record at auction selling for more than $48 million in moderate. the 1962 smashed the previous

record by $10 million third for ari build 36 examples of the top -- of the car from 1973 to 1964. it generated the highest prices in recent years. in 1963 badgeys put $17 million in a private transaction this year. 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'm haslinda amin. this is bloomberg. ramy: thanks very much. two washington, d.c.. senator john mccain's allies as well as his political foes rally in a rare show of unity in offering condolences on his death. they include president trump who had repeatedly criticized mr. mccain since he began his campaign in 20 15 care the president waited, my deepest sympathies and respect go out to the family of senator john mccain, our hearts and prayers are with you. bloomberg editor ros krasny

joins us now to washington. who else have we heard from so far? fromwe have really heard everybody across the u.s. political spectrum and many other world leaders. i think it is very interesting to look at somebody like john mccain and see how much of an outpouring their heads been even from leaders from angela merkel from germany, emmanuel macron, theresa may. president of the united states, he ran twice as a republican, but do not win. yet he had so much respect around the world. talked about how strongly he fought for the transatlantic alliance, his role as a patriot, and statesman, how often he would go and visit u.s. troops. seen as a large and very

irreplaceable character on the political scene. haidi: ros, what happens to mccain's senate seat? ros: seen as a large and very irreplaceable very interesting. we expect after this week, where there will be quite a number of memorial services in arizona and in washington, that doug ducey, the arizona republican governor, is going to appoint a placeholder who will serve in mccain's place until 2020 when there will be another election. the winner of that election will serve until 2022. there are a few names floating ducey might who appoint. one is john mccain's wife, cheryl. it is not unknown, certainly, for the spouse of a senator who has died to fill in for them. that would not be unprecedented. it would be very interesting to we don't know if she is interested. who has beenother mentioned. a former arizona senator. a few other people including the chief of staff to the arizona governor. look out for that news on that

within about a week. ramy: ros krasny in washington, the latest out of the death of john mccain. thank you very much. let's get more on this. joining us from washington is senior political strategist terry haines. through the lens of the bloomberg audience here, what do you think mr. mccain's legacy will be when it comes to the world of money, business, or finance? ll, good evening from america and thank you for having me. legacy iscain's almost to the much to encapsulate. he is -- first thing, this is very much the old school. the world is divided into work courses and show horses. senator mccain was very much a work horse. andar as directly on money finance, these are not things that he spent a lot of time on directly. but he did chair two important

committees. one, the armed services committee, which of course controls a great percentage of american spending. secondly, he chaired the commerce committee, which thesees well over half of regulated industries in this country, including securities and exchange commission's, the trade commission, everything else. is one of there making sure that those agencies were updated, that they moved accommodate the internet, accommodate new that theies, make sure pre-and post-9/11 world worked well and without undue influence, or damage. that sort of thing. he had a great influence on that. at the end of the day, senator

mccain will be known more for his defense work. i think he largely defined defense policy for the last two decades. wanting to make sure that his colleagues worked reallythe aisle and focused on the priority issues they needed to focus on. haidi: how much of a loss will senator mccain be, in terms of his religion ability to be able to reach across the aisle, given how divided the current environment is? uniquemccain was almost in that perspective. that is a very good question to mccain was almost unique in that perspective. there are others who will want to take up his mantle. senator graham of south carolina being one who is a protege of his. i think, the senate, remember, has to work by consensus. in the end, what you do get out of the senate is a lot more

working across the aisle then anybody thinks. the senate is designed constitutionally, the senate is designed by its rules to working across the aisle, encouraging consensus. that work will continue. did will be harder without senator mccain there. that is for sure. this is almost a generational handoff here. i think that is in part what makes this such a big deal. stay with us. terry haines will be staying with us. lots more to talk about what comes next for tesla? elon musk talking about his private plan. we will take a look at that. terry hainesith after -- up next, more with terry haines. we will wrap up the action from jackson hole. this is bloomberg. ♪ is is bloomberg. ♪

♪ haidi: i'm haidi in sydney. ramy: i'm remy inocencio a new yorker you are watching "daybreak: australia." -- gutting policy is a tricky business for sure. that is not stopping fed chair jay powell from flagging two more rate hikes this year. our global economics and policy editor kathleen hays is here now. kathleen, it seems like mr. powell is not going to be byerred by inversion or rising trade tensions could kathleen: certainly not over uncertainty for longtime used monetary indicators. which he was putting in this great metaphor for, you can guiding your boat by the stars, what about guiding it by policy stars? he also started out i saying employee or -- employment is at a 20 year low. no sense he is worried about the economy that would deter him

from rate hikes. then he gets into this thing about past errors in the system of guiding by the stars. not sure what the nature of unemployment is he says navigating by stars is sometimes straightforward. he tried to guide policy by the stars when the stars are changing. he goes on. i think this is the part that markets care about. fed must avoid moving too quickly and hurting the expansion or moving too slowly and allowing inflation to get out of control and then you get overheating. he also said at the same time, he sees no elevated risk of overheating right now because he doesn't see signs that inflation will go above 2%. one more thing i want to add. i think some people are saying dove, some people saying not to pick he said, the current rate hike path takes into account both of the risks he talked about. people say to rate hikes this

year. here is what he told bloomberg television. moving toward neutral, which means three or four increases over the next 9-12 months. at this point, moving in september is consistent with that path. kathleen: notably, bloomberg he took adoes say dovish policy turn here because if you are willing to look at these variables, and so you will look more into economic economy as well, that is dovish. they don't see a rate hike. a lot of people say, well, not such a clear sign. i think the majority is still looking for two more rate hikes. haidi: kathleen, thank you for that. taking a look at the aftermath of jackson hole. still with us, terry haines. thank you for sticking around with the spirit how difficult is

it for policymakers at the fed and central bankers elsewhere to be able to juggle these uncertainties to do not just a master policy, but also politics and trade wars and the potential? donald trump saying the markets will sell off miserably if he is impeached. is that the kind of thing that the likes of joe powell are trying to work out at the moment? terry: i think these are things int markets react to real-time am constantly. i think the federal reserve and triesderal reserve chair to block out that stuff. these thingss at through the lens of two things, one, the statistics, what they are getting out of their studies, what they will get going forward, and secondly, any chair has to look at the sentiment of the other board members, and right now, it was willudgment that the fed

go far with two or three rate hikes. expectsame time, i would that should something really start to change, whether it be serious changes in the trade war between the united states and china, whether emerging markets really start to have more trouble and have it not just be turkey, for example, no sign of that. i'm saying is that for as for instance. i would expect the fed to regroup fairly quickly and start taking a look at whether or not they might need to change these policies. noted,ow, as was just [indiscernible] ramy: let me jump in here. concerns hasggest

been overshadowing everything is whether the yield curve is one of those stars that can be a guiding factor in fed policy. pop into the bloomberg, and i want to show you this. i will point out to you that the 210 curve is actually now below 2018 -- is now below. we know this is indicated recession. to what degree are you looking at this? to what degree do you think things have changed? terry: are people have been looking at that closely. as of right now, i don't think we have a sense that there is anything really here to worry about. we continue to see the economy as strong moving forward. and have not identified the issue that you just mentioned as a potential major changer right now. ramy: switching gears here, because last week we were taking a look at u.s.-china trade tension.

nothing really concrete came out of those low-level talks. i see that you say that china continues to make a significant mistake about cutting the trade deficit with the u.s. why is that? terry: i don't know why they made the mistake, but i thought it was a mistake when they started making it. apparently, judging by what we get out of the lower-level meetings last week, they continue to make it. the view i have continued to propound for the loss -- last has been what the united states is interested in is getting some real results from china on three different issues to one, intellectual property protection spirits second, intellectual property theft. third, the metals issue. steel and aluminum. there is an overcapacity issue and a trans shipping issue. , startinge government in early june, in the meetings

in beijing with secretary ross, decided what they were going to prioritize was essentially what i think of as a 30 pieces of silver argument. says,the trans government we will buy $70 billion more of your goods, and in return, you will agree to what the government that was unilaterally disarmed. took on bridge at that and we have been in this standoff. to the extent that the president is facing increasing the mustard, legal and political pressure, do you think that raises the risk to an extreme reaction against china? terry: i really don't. i think this for two reasons. beenthe administration has clear in my estimation since day one of the administration with what they want in trade policy. been very public about it and direct about it. i don't think that is the case. number two, i think it behooves

remembering, and this dovetails back into our earlier discussion about senator mccain, it behooves remembering that congress is really a partner in all of this. congress will not take lightly they wille idea that defeat or ramp up. believes in the goals of the trump policy, disagrees on some details, but it believes in the goals. i think it will continue to as long as the administration remains consistent. haidi: terri, thank you for joining us. remember, bloomberg users can interact with the charts showing gtv go. you can browse the recent charts featured on you -- on bloomberg tv. you can save the charts to your future reference as well. this is bloomberg. ♪

♪ world's top oil refiner posted a record profit thanks to higher crude prices. 6.2 billion dollars from $4 billion a year earlier. that is the best profit on to 2000.ting back hadupstream business significantly improved on higher oil prices. ramy: china's largest coal 7%.ucers said profit fell output fell. it was forced to buy from other suppliers. say net income fell to 3.6 billion dollars through june. that is from $3.8 billion one year ago. it's performance contrast with china: energy which posted a 54% jump in earnings. stock fund that solves this year, markets sank says beijing long riser

activated is a focus fund that oversees $3 billion. more than $1 billion of that in cash. it says a trade war with the stocks may- means take years to recover. it has risen 618% since it launched in 2008. coming up next, we see the aussie dollar staging a recovery . aussie markets pretty sanguine with the political turmoil here. this has morris and vowing stability as they take the reins in australia. he has announced his new cabinet shortly after being sworn in on friday. we have the resignation of the foreign minister as being one of the big headlines in that reshuffle. we will take a closer look at what lies ahead for australia after what has been a tumultuous week in politics. even by our standards. this is bloomberg. ♪ ♪

♪ haidi: it is 8:30 a.m. in sydney. markets opened. a brand-new trading rate -- week. wengs have been flagged as get into this in the open. taking a little bit of a breather when it comes to the political week of turmoil here in australia. i am height -- i am haidi stroud-watts in sydney. ramy: i'm ramy inocencio in new york. you're watching "daybreak: australia." let's get the first word news with haslinda amin. slinda: it- ha is prepared to detail with the budget of illegal immigrants. deputy prime minister said italy will look at all merges content

-- considering the finances and will oppose anything that is not convenient. the populace government is irritated that other eu states refuse to accept migrants that reach italy by c. lawmakers and iran have -- the follow-up from the u.s. decision to abandon the nuclear deal. they voted to fire him after a year at the job in what is seen as another blow to the administration of the president. he said, iran and the u.s. are in an all-out economic war. commodity trading for survival is put to the test later monday in singapore. a debtlders voting on for equity plan that will strip them of control. the proposal will have most power to creditors while diluting shareholder. it has lost billions in values amid a looming debt, default,

and questions about its practices. the big screens how much --, -- for a second weekend. it comes amid "crazy rich added $25 million to its hole in the u.s. and canada, making a total of almost $77 million. its success has inspired one of the brothers to start work on a sequel with director john chu. 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'm haslinda amin. this is bloomberg. haidi: thank you so much. we will get you the latest on the markets as we begin trading in this new trading week we have the s&p in the u.s. closing at a fresh record high. joe powell staying the course when it comes to the rate hike trajectory. maybe a hint of a dovish tone coming out of his address.

this is how it is setting up and asia. kiwi stocks trading to the upside. kiwi dollar at 66.95. the dollar weakness. .5% over the last week. sydney futures looking uninspired going into the open. that is a market despite the political ups and downs, trading at close to decade highs. the aussie dollar, 73 point 32. with this new countercyclical adjustment factor being added to how the pboc and hence to support the yuan, we are seeing sentiment coming from the aussie. let's get more on what should -- what we should be watching. he is here with me in sydney. australia's new leadership along these longer time. would they want to? is a what we have situation where we know what is going on. we have a new pm come in new cabinet that has been announced. and we have that relief. what we have seen in confidence.

thing now is even going into the election next year, all the things weighing on completely separate from the political landscape. all the pressures around the links to china, the trade war, and some of the fundamental trends that have been working against this currency. as this chart shows come it has been a steady, pronounced downward pressure on the aussie for some time. there are not that many people in the market were willing to bet against this trade and willing to bet for any sustained relief and a sustained rally in the australian dollar. that is a tricky thing from a fundamental standpoint. is do have a market that fairly, heavily skewed toward a short positions. plenty of talk of sub 70 u.s. cents for the aussie dollar. unless the fundamental landscape changes in some significant way, there is no real signs that -- of any optimism. ramy: in china, meantime, it has

taken a brave investor to call the bottom in the stock market. many have dipped their toes back in. with that said, beijing long rising in its asset company has had a stellar run. it is saying it is best to remain in cash or what is the detail here? adam: as you say, it has been a very difficult market to call the bear market 20%, 25% off those january highs. these folks certainly think that you do want to remain in cash at this point. they pointed to a number of fundamental aspects of the economy. still concerned. their view is interesting because they have had a great run since forming in 2008. they are of more than 600% and have had some very good wages over that. -- over that period. one of the key issues is this lack of turnover and lack of interest in the market which has been falling off in this bear

market. what they are saying to investors is to continue to shine exporters, they dislike auto part makers, some of the furniture manufacturers. they have been dialing back there consumer electronic exposure. they are airing on the side of caution, saying you should stay in cash. haidi: thank you so much. adam haigh and, don't forget to check out our gtv library for those charts that at number for two. it is on gtv go on the bloomberg terminal. as adam mentioned, australia's new prime minister is pledging to bring stability after the latest political upheaval. the sixth leader in 11 years p.m. with this latest trauma driven by slumping poll numbers ahead of an election dubai next may, joining us is rodney tiffen. he also wrote a book called "disposable leaders." it seems relevant in this case. why does this keep happening? partly it is

self-perpetuating. each time there is a leadership, it creates resentments amongst people who were overthrown. that is clearly at the center of this. malcolm turnbull overturned another and has been wanting revenge ever since. haidi: i want to throw out this chart for our viewers. taking a look at the last 27 years. we take -- we keep talking about these on an -- about this uninterrupted growth. a lot of this has been circumstanced because we have been writing on the back of chinese growth which has been unprecedented. are we getting to a point -- is it an existential .4 where the next 25 years of growth comes from? is good policy making more important now than it has been over the last 10 or 20 years? rodney: we live in very, get a times, as a no. the australian economy is still

performing well. the big problem in the economy has been the wage growth. it has been so slow. are phil -- feeling in their hip pockets that it is not as good as the larger indicators say. i don't think economic policymaking has been at the heart of this queue. it has been much more political and personal. rodney, looking at it from the outside in here from new york or globally, what would be the biggest changes in terms of policy, in terms of foreign policy, with scott morrison now is the new premier? rodney: i don't think there will be any big changes in foreign policy. toughk there will be a line on immigration. there will be more antithesis on law and order. a is not an abandonment, dilution of australia's commitments to the paris peace accord and climate change.

ramy: all right. heidi mentioned this with china. dig deeper. with foreign policy and china, any possible changes there. morrison thursday, mr. was one of the key cabinet ministers who introduced foreign interference laws, which basically annoyed beijing. rodney: yes, that's right. i think malcolm turnbull was already moving in the same direction. i think turnbull and morrison have been working closely together for the last few years. one of the different things about this leadership coup is the challenges failed. the rebels failed. ally who hasl's inherited the prime minister should. in that sense, there will be changes but they will not be as [indiscernible] election, is it

labor to lose? rodney: you would think so. the patent has been for a governing party that has successful leadership to lose the next election. turnbull, they were already trailing in the polls. now, this morning, it has been published, the most disastrous public policy we can remember. what we call in australia, two party preferred basis, the liberals are losing 56% to 44%. that is a much bigger margin than we are used to in policy -- in politics. ramy: all right. we will have to leave it there. rodney tiffen comey university of sydney government and international relations --rica's profession professor. let's switch gears. let's head into the world of tech and tesla. the company is facing possible

bonds in the road after elon musk did an abrupt downturn and dumped his plan to go private. his latest tweet came a couple weeks after he first floated that idea in the first place. that was followed by news that a senior executive is now leaving the company. su keenan has the latest twist and turns in this tesla tech drama. su: a blog clip -- posted late friday, it is a stunning reversal of that august 7 tweet. let's cue the stock chart. year to date, that was the peak stock price and he announced on the far right. in the financing had been secured. that followed a week of questions about the financing and now, the blog. let me read from what was posted late friday. he pretty much aborted plans to go predicate musk said he knew the process ongoing private would be "challenging." but they said it would be more time-consuming and distracting

than initially anticipated. he went on to say, considering this, he met with tesla's board to let them know he believes the better path was for tesla to remain public. again, if you look at what is ahead this week, many analysts say it could be more of a wild ride in the past month. you can see the gyrations the stock has been on. we know muskk, hastily put together advisors and morgan stanley on taking the company private through possible m&a. goldman also said to be advising those close to the company, for to the situation. they say the saudis who are also being consulted, the possible sovereign fund, was spooked at the idea of being thrust into the spotlight. a lot of key investors who musk softwood back them indicated that they would not support a plan to go private. that is pretty much what we have seen in the blog. leaving a lot of questions about

what has been a brilliant but erratic ceo as of late. haidi: yeah, a lot of questions remaining for the board in the stock. yes. the questions going in, analysts say, is you have gene munster saying you had a ceo that directly reversed himself, but puts more focus on does the board rate -- rein him in? let's take a look at the latest stock chart. if you can just see some of on stock price, investors are concerned about the focus of the company. gene munster says something about this incident does not just go away. you still have an sec probe. this could be played out in some very dramatic volatile moves in a stock that is known for being volatile. a high beta stock. ramy: we look forward to see what it does. su keenan, thank you very much. trade talks and with little product -- process.

because winter institute on china and the u.s. joins us next to discuss his worsening dispute. this is bloomberg. ♪ this is bloomberg. ♪

♪ i am hearing many more businesses saying, the pricing pressures are real and we will start to think about how we transfer that into the final goods and products. there is a lot of concern on main street about how these tariff war's will affect them and their products. soybeans, for instance, is a major product out of the eighth district that is exported. to somee can get resolution. i hope the strategy works. that this negotiating tactic. wise, we look economy don't see it much. if you look in a, you are seeing impact.

what i hear from ceos i am theing to is at a minimum, tariffs are having somewhat of a chilling impact on their capital spending plans. >> it is certainly a risk. if you look at just the tariffs that have been announced in terms of the macro economic effect, it is up at large. there is uncertainty around how that will play out. that in and of itself can affect firms. ramy: you heard it there. the fed president's right here on bloomberg television on trade from jackson hole, wyoming. meantime, the trade war may be about to ratchet up a few more notches after the lack of progress in talks like we -- last week. more hawkish members are gaining influence and are not preparing to unleash a new offensive in the coming weeks. joining us from washington is robert daly from the wilson , kissinger institute on china and the united states. robert, thank you for joining us. as we talk about this, let's dive into the bloomberg terminal

and get us up to speed on the tariffs between the u.s. and china appear $50 billion from where we're at. the yellow line indicates the new 200 billion dollars. we are team -10. will that be triggered? is looking more likely after the failure of last weeks talks. it is more likely in part because is is not just about tariffs or economics. both sides seem to believe this -- we're only talking about the economic aspect of a long-term struggle for balance of power throughout the world. economics is one facet of that. yes, it is likely to get worse. ramy: earlier in the past hour, we were talking to terry haines at ever core isi. he was saying china's big mistake is focusing on the deficit. do you think you would agree, and what else needs to be in focus? focused on theas deficit in that it is willing to buy more american products to address the deficit.

america's other request are from china's point of view, requests the structurenged of its economic but the structure of its political system. we want china to stop subsidizing state champions, we want china to stop the code word -- what is called the coercive transfer of intellectual property am a technology to china, and we want to stop building state champions through subsidies that can threaten to dominate industries. for china, this is telling china that you're not to get rich. you don't have the same legitimate right to become a technological superpower. china seems to believe we are committed to containing china and the economics is really a means of doing that. haidi: that is just it. china would see this as being a hegemonic war. is it an ideological battle that we are seeing play out? you spoke about the global power tussle going on. is a stronge ideological component that is likely to get stronger because there is so much distrust

between the united states and china. i don't think the united states and trump administration started all of this for the sake of balance of power per se. but there is evidence that the more hawkish advisers to the trump administration think they have discovered full or ability of this she administration -- of the xi administration. there is a lot of talk that china is confused and many people within china are questioning xi's leadership. are reporting to people like peter navarro and hardliners of the american administration that we are scoring points. that we found the weak spot. haidi: there is no doubt it has been a difficult summer. i think it is fair to say we are a long way from that ultimate power being threatened. donald trump is also a later that is becoming threatened by his political and legal woes at home. does this heightened the chance of a policy misstep? robert: there is tremendous

economic and political fragility on both sides. perhaps more political fragility in the united states than in china. yes, it may well be that china wants to wait until after the midterm elections. they watch american politics very closely. the democratsd, take back control of the house, which is not certain but it seems increasingly likely, then china may face a very different kind of negotiating partner in donald trump. at this point, you say we are team -10 to an additional 200 billion having tariffs put on them, why not wait to see if trump is somewhat hobbled in november? ramy: that is one thing in november. the possible is side mean -- inside meeting between xi jinping and donald trump in november. possibly aligning. are you at any chance optimistic that a breakthrough might happen when the cameras are trained on

these two world leaders? past administrations, in the obama administration with xi jinping, the obama administration when it was working, leaders summit tended to be what are called action driving events. leaders summit per se really does not signify much. on the u.s.-china docket, there is what is being called a trade war. there are questions about north korea. the issues at the south china sea are always out there. i can are seeing this now as the beginning of a long-term struggle to increase the power and influence of both nations. use the phrase, new cold war. which may be overwrought. we are talking about long-term structural hostility across economic, political, ideological, and normative spears -- spheres. ramy: possibly the solidifying of strategic competition between

the tubing. robert daly, director of the wilson center kissinger institute on china in the united states, thank you. you can get a roundup of the stories you need to know to get your day going in today's issue of daybreak. bloomberg subscribers can go to dayb on the terminal. this is available on mobile in the bloomberg anywhere app. you can also customize your settings are you get the news on the industries and assets you care about. this is bloomberg. ♪ this is bloomberg. ♪

♪ haidi: i am haidi stroud-watts in sydney. ramy: miami me ramy inocencio in new york and you're watching "daybreak: australia." haidi: that is about it for me this morning. is daybreak up next asia looking at what is coming up in the next two hours. chinesewatching these oil players. they kicked off yesterday, i should say last week. releasing their earnings as

well. first-half profit. they are reaching a rough -- a record growth of 52%. that is thanks to the strong performance of its refining business. they are in the sweet spot where the up street businesses are benefiting from these higher oil prices. that is offsetting higher oil purchase prices when it comes to its responding business to we will see if this sweet spot continues. is tol talk about what come because despite the $70 oil level we have seen, the upstream business remains unprofitable. it makes you wonder what the breaking price is going to be for the company. also look ahead to petrochina. ramy: rising oil chat -- charges. guestme, we will have our jason shanker coming in in a few minutes. he is the president of prestige economics. always good to have him. we will talk about a lot of things. we will talk about what has happened to jackson hole and the interpretation of mr. powell's

comments, as being dovish. we will talk about fed independence and the latest on trade with the u.s. and china. not so much happening out of last week. we are t-10 days in regards to the $200 billion of tariffs between the u.s. and china. that is set to start september 6. -- despite the lower level talks taking place last week. more pain before we get resolution. lynn,l be joined by max talking all things emerging markets. is the pain over? we had a wrist bite of weakness last week. down 6/10 of 1%. that created more of a breathing space for these asian emerging markets currencies. is that a temporary pause? we will take a look at the impact of the trade war because the assumption is as long as it trade tensions continue, as long as the fed continues its trajectory, that they would be

coming from jay powell's comments, then the dollar strength is going to be the way to go from here. lots more to come on daybreak asia. that is about it for "daybreak: australia." we have trading with a new government today. this is bloomberg. ♪ xfinity mobile is a new wireless network

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yvonne: we are live from bloomberg headquarters. welcome to "daybreak: asia." the top stories this monday. stocks look to modest gains. the move to take control. -- no change in policy. i am in new york where it is just past 7:00 p.m. on a sunday area the talks might be a point of a breakthrough. and