ing connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. ♪ >> another day, surging tech, helping to set new highs, the s&p 500 above 2900 for the first time. >> trade is remains a top driver, with president trump saying canada will agree to a new deal by the friday deadline. an airport near you, boeing and airbus making a dream come true. and amazon approaches apple's

magic number. a $1 trillion market cap is now within striking distance. hello from city where it is just past 8:00 a.m.. i am haidi stroud-watts, and we are hours away from the open. here are the numbers. ramy: over this next hour, we will looking at the action, with the asian pacific trading day and wall street, and as we said again recordsidi, for the s&p as well as the nasdaq. take a look at the closing numbers, the first time, as we mentioned, above 29 hundred, up 6/10 of 1%. we were also talking about how more strategists were revising their year-and, and barclays now weighing in and saying they will get higher. biggestaq seeing the jump with a huge rally in tech.

we will get more on that in just a few minutes with su keenan. ramy, and there is exuberance we are seeing. take a look in asia. we are looking at record highs. new zealand trading just getting underway. that is a market at the highest on record, maybe a little overboard if you take a look at still, itcals, that looks like we may be seeing some profit taking, the kiwi dollar and the sydney futures on track for a fifth day of gains. in australia, trading at the highest since january 2008, so, again, hitting that new 10-year high. we did have a bit of a decline aussi after -- in the aussie after the second largest mortgage lender aussi made a statement. and this really crushed expectations for this attempt 29 80%now 20%, where it was

just two months ago. ramy? tech was the big story, with the nasdaq 100 at a brand-new record. keenan joins us. definitely a broad-based rally today. yes, and some were saying stock you for a. it will not be with all of the trade deals that people would like, but now optimism is a good thing. the dollar is a bit weaker, the nasdaq up 1%, showing the ,trength in tech, but it is 19% comparable.e let's go into two stocks in the

spotlight, amazon and out for bed, as morgan stanley -- amazon and alphabet, as morgan stanley made an announcement. here ishave charted out amazondaq 100 and the shares. this is amazon, wait up here, leaving everything in the dust. morgan stanley has increased its target for the tech giant by 35%, and as we said, it is within striking distance of that $1 trillion valuation. thes take a look at some of others stocks that were moving, and "moving" was the word. asre is the marijuana story we look at this particular stock out of canada with a 95% increase, and tesla also under pressure with concerns about the ceo. back to you. to thesu, before we get

other market moves, we are hearing about a merger for the equivalent value of $15 billion. , withs $15 billion aussie the creation of a new company that includes vodafone. tpg says that their shareholders are at 49.9% equity of the merged company, and the managing director and ceo has been picked vodafonew tpg and combined entity. about this hearing merger that would create australia's third-largest medicaid group, really dramatically reshaping this part we areindustry, and

seeing pressure and a bit of consolidation here. more on that story, but, su, we also saw quite a reaction to bullish eco-data. we are seeingsu: yes, across the board. first, the gdp data. it was to be a little bit negative, and a egg surprise, increasing higher -- a big surprise, increasing higher. the atlanta fed had predictions that were more bullish with optimism about the economy and the market, and this has been arting of late, but it got bump from the weaker dollar. there was support of higher prices, and we have been talking about gold. this is one of the popular etf's, but there analysts now saying that the big drop in gold could be setting up for some type of rebound and that there

is an interesting play that in,e funds are taking part which has the more durable the mores opposed to bearish bets in the commodity at itecord level, but the etf, looks like there are a lot of holders holding on, and there may be some type of end of year rebound. stay tuned. haidi: thank you. let's get to first word news. investors turned more optimistic that a deal will be reached before next march. yields tumbled as the eu chief negotiator said that they plan to give britain an unprecedented partnership, unlike given to another country. and appealing to the imf for faster cash, with a payout in june and a credit line.

an additionalting $3 billion next month, but the government is asking them to speed things up. macri has not said how much he fund.quested from the and weeding out high denomination notes does not seem inhave worked with the rupee circulation. says.b.i. annual report handed in,en suggesting there was hardly any cash wealth not accounted for. ipo.eading for an not james bond but his carmaker. aston martin had a multiyear and they are looking for a value of about $6.5 billion at a final decision on the offer next month. , they have been

making cars and going into the wider luxury market. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. haidi? haidi: president trump says the post nafta trade deal is on, washington sticking to a strict friday deadline for the trade agreement with canada, and the president says he is optimistic. president trump: canada really wants to make the deal, and i think it will be good for them if they do. haidi: let's bring in our reporter who covers this. this possible this can be done by friday? have seen positive

news from both sides, with prime minister trudeau saying there may be something possible, something similar coming from his foreign, as well as president trump, that there are a few difficult issues to work out, and three days is very little time by conventional standards to try to deal with it. ramy: all right, so with regard to what might be happening after this, we are looking at friday, but there are still some stumbling blocks. eric, walk us through this. yes, friday, that is for the u.s. trade representative to send a letter to congress, letting them know 90 days ahead he intends and president trump intends to sign a trade agreement with another country. the deadline is 90 days to be able to still sign it with the current mexican president , and i meta nieto

with ambassador lighthizer at the white house, and he told me and a group of journalists that he plans to send the letter on friday with or without canada on board. it is possible that he could send the letter and at least open the possibility of canada joining later. there is a later deadline that people could agree in september or the end of september for submitting the full text of a deal, so the possibility than that they could negotiate with canada in september, a clear message is being sent by the u.s. administration to canada that they really want them to get on board by friday with the letter they would spend on friday. right, if things do not continue want after september, there is still a ,hance that things could happen with political and economic blowback on both sides. well, canada, with any

trade agreement could, in theory, join later, but the damage in the canadian market from the perception that canada could be shut out of free trade with the u.s. could be a significant potentiality, with certainly an impact on the canadian economy, and, if necessary, the u.s. is prepared to proceed only with the copious they have the trade promotion authority granted by congress to withxecutive -- only mexico. they have a trade promotion authority granted by congress to the executive to enter into trade agreements, and they could enter it only with mexico. this is something reviewed by congress and trade lawyers. that is if canada is not on board by the end of the day on friday. haidi: eric, thank you so much martin fromus, eric

washington. and under pressure again. the argentinian peso and an appeal to the imf for softer credit. ramy: but up next, new records on wall street may be rising confidence on trade, and an economist joins the conversation . this is bloomberg. ♪

we are counting down to this is the open with futures on track for a fifth day of gains, markets trading again at these 10.5-year highs, and telecom gained yesterday, the expectation now confirmed of a ander the between tpg vodafone, agreeing to be the third-largest medication company in australia. -- communication company in australia. am haidi stroud-watts in

sydney. ramy: and i am ramy inocencio in new york. am haidi stroud-wattsa very brs investors speculate that the trump administration will continue to make progress on the trade deals, at least in north america. joining us is a chief financial officer. chris, the s&p, a brand-new high. let's take a pause to collect where we are at this moment. how are you feeling? chris: great. yes, it seems sustainable. maybe some of those trade war headwinds are lessening a little , so there is a little more confidence out there. we also got corporate earnings today, gdp style earnings, corporate profits. those were pretty good. ramy: sure, revised upwards of 2%. on the bloomberg terminal, i our to show you as well as

bloomberg terminal subscribers and our viewers this chart here, called "bulls on parade." i brought this up yesterday, because we are seeing while folks are raising their forecasts, including barclays, there is the red line, hitting above that marker -- is that a red flag to you that we are due for a correction? chris: it has to be something that comes from out of left field, like what if there is heated rhetoric with canada, that canada cannot joint? or maybe people are not certain if nafta in congress is going to be passed with an agreement with just mexico and the u.s. it has to be something that hits. it could be china, a growth slowdown there. ramy: china were maybe even a trump tweet even. chris: there seems to be a

sticking point with china, and he has said this was not the right time to negotiate. there are these joint ventures with the technology transfer. who knows how they are going to resolve that? it has to be a fundamental factor. i do not think the s&p 500 up 9% to date is excessive, especially given the corporate tax cuts. for gdp-style corporate tax, the lastup 16% over year. that is a lot. that buys a lot of stock market higher valuations. if it was not the tax cuts, it would only be seven or 8%, but that is still pretty decent. in terms of how the markets are pricing it in, as it has priced in the trade tensions, or if investors are still blissfully ignorant, if you will -- we have not seen any impact come through, have we?

that is the interesting thing you don't forget, exports and imports. ago, the set months orders. in fact, i was just noticing with china that both our u.s. imports from china and exports to china right now, the first six months of the year, they are up 8%, 9% higher than last year, both imports and exports, and what that tells me is that companies on both sides are rushing to get some of this product in before the tariffs take effect, but they have not seen any economic slowdown. the economic fund mental's are fine, but the problem with that is when they put on -- the economic fundamentals are fine, but we really do not have july trade data. get data today. $34 billion july 6. august 23 last week, another $16 only 50 so there is

billion tariffs on, and they are discussing more billions, and the period runs through september 5 four comments. this could hit the fan later on. 2019, the slowdown story, that is the worry here. before the bomb goes off. it could be a long time. there is a long fuse. chris, is there a failure in the logic in the narrative with the u.s. and china, really, it is hitting china harder, in that they are already going to a slowdown, and the u.s. is seeing robust growth? there is an argument that when china gets sick, everybody else gets sick in terms of the supply chain and in terms of the inflationary health. well. yes, i remember it was 2016, and we were scared

to death january and february there when the fed delayed a rate hike. we were scared to death about the chinese economy and what that would do to world economic growth. currently, if you take a look at the imf, we are looking at 3.9% in the next two years. chinad be concerned about growth certainly given the trade sanctions, if we cannot get this settled. another thing that worries me, just look at canada. i mean, our trading deficit with them, the u.s., is $17 billion. that is nothing. we send them 280 $3 billion and take in $300 billion. 3 billion, them $28 and we take in $300 billion. i am concerned about auto and auto parts. i think until february or march next year to start moving towards auto tariffs.

i am more concerned about that right now. chris, with those auto-parts you just mentioned, we did see a bump the last couple of days when there seemed to be some clarity with the u.s. and mexico. what about ahead? if they arenot know done with that. maybe some have gotten assurances, maybe south korea, but no one really knows it it bothers me when you have the president, i believe this is the there are soe -- many tweets. he wondered why germans in berlin were not driving u.s. cars on the streets, and i think he mentioned g.m., and that tells me that maybe he wants to america great again by allowing american manufacturers to sell cars to the rest of the world. those days are not coming back. to -- ihris, i went want to take a look at amazon

, both up, and we have seen the nasdaq at record highs and the tech turnaround. fromng about this rotation growth to value, still growth right now? yes, i think we are still focused on growth. as long as the economy performs and we still have these disruptors, people are going to believe the tech story and what they are going to be able to earn in future years. the only thing that would worry me is some of these fed rate somehow could slow the economy, and the consumer stops buying as much. then i would be more concerned about stop market valuations -- about stock market valuations. ramy: chris, thank you. and you can get a roundup of the stories you need to know with "daybreak." the u.s. and canada in talks,

and briber's -- subscribers can go to the terminal and also with the mobile bloomberg anywhere app. get the news on the industries and matters you care about. this is bloomberg. ♪

welcome back. let's do a quick check of the bloomberg flash headlines, one notch aboveto one jumped by moody's with a restructuring plan that could take years to complete, moody's downgrading them with a negative outlook, citing the erosion of their local business position, ford.

it would cost in billion dollars in the next three to five years. chartered mayd fines afterds -- things are more extensive than they admitted. they are looking at individual employees, and an announcement could come next year. stanchart has already played fines. goingfacebook is international with its video challenge to you too. be eligiblers will to take a percentage of the advertising revenue that comes from their material around the world as long as the videos on watch are popular enough and meet facebook standards. the company will look at content deals to account for the new international audience. all right. up next, argentina asks the imf for faster credit amidst struggles to stay afloat.

we will discuss the growing prices and the outlook for the emerging market as a whole with a former u.s. treasury official. this is bloomberg. ♪

eight: 30 a.m. in sydney, where markets open in about 90 minutes -- it is 8:30 that stocks trading at 10.5-year high. i am haidi stroud-watts in sydney. iny: and i am ramy inocencio new york. it is 6:30 p.m. here, and you are watching "daybreak: australia." let's get our first word news with jenna. one stock has surged since the end of 2014, adding a million market cap, making

jeff bezos the wealthiest. this is amazon. it crossed the line for the first time on august 2. and turkey with the interbank money market, tightening liquidity after a few months of restricted funding that aimed to deal with a crisis, the equivalent of about seven dollars billion u.s. -- about $7 billion. is said togovernment have asked the r.b.i. to a list of merger candidates as part of a drive to clean up the banking system that is drowning in bad debt. they want to have fewer and better capitalized lenders and improved regulatory oversight. the 10 largest

economies in the world. special counsel robert mueller has asked for more time to consider charges against manafort. he said he did not have sufficient information because manafort's attorney has not filed a motion. the former trump campaign manager was found guilty on eigh t counts. day onnews 24 hours a air and @tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. i am jenna dagenhart. haidi? this is bloomberg. haidi: hitting a record high, looking maybe just a tad , a little bit of

dollar weakness they are, the dollar index down by about 2/10 of 1%. sydney futures, it looks like we are on track for a fifth day of gains, trading at the highest 8 is what weand .730 are seeing. that did take a tumble with the expectations that a rate hike before september 19 -- you can take a look, push down to just majorom about 80% after lenders are expected to raise mortgage rates imminently. all right, let's take a look at what we should be watching as trading gets underway. out with a 14% rebound in the shanghai composite. this is like throwing a dart at the wall, isn't it? the chinese markets? >> yes, you certainly have to be brave to make a call on the chinese markets. referring toy are is the decline, and the rebound we have seen in august, and in some ways, that is giving them a

bit of comfort. what they are really saying, the people arethat unfairly mispricing a downturn in the economy and that they are over doing that, that the market really needs to dial back some of that activity, and this is on the back of, of course, policy support from the pboc. their forecast is pretty steady on where it is now at the year-end. occur, that certainly would lay the groundwork for a lot of the fragility that we have seen in the equity markets and for us to cannotrom here, so you really have a call on the equity market unless you are really sanguine on the outlook for the currency in china. rise, butright, so a is there a possibility that maybe people should that on a fall in the united states? one technical indicator you are

looking at is the relative strength index, just hitting the overbought territory. this, with useful is today the equity gains we are seeing? ramy, i think him in a sense, it is not the predictive value. it is just how far an extreme how far this move has been in u.s. equities, and we are now in bull territory great we have not been there since january 29. clearly what happened at the end of january, going into february, it creates fragility in a sense, because it is a perception extreme, and the problem here is a lot of hedge funds, for example, missed the rally -- a notof people too heavily dissipating, and there are signs of people wanting to hedge against the upside, whether they are doing that through the options market or incrementally

adding more stocks, and that is really pushing this momentum to extreme levels, so i think it is important to note here that at the end of january, we did tick up higher, but, certainly, a very, very key indicator to watch. all right, thank you, as always, and don't forget to check out our bloomberg terminal. all right, let's continue a long and head into the emerging markets world -- let's continue along. argentina appealed for faster credit from the imf and now went public. our global policy and economics editor kathleen hays. woes, it hasntina weekends. yes, i would show you that chart in just a minute, a goodecause it is such

one. i will call it up now. this is from our bloomberg library. it did get pretty low. the percentage is so striking, because, yes, they did ask the imf to speed up the payments from their $50 billion credit line. they have to convince investors they can survive their current financial crisis, which has just gotten worse. remember back in may when they raise their key rate up to 40%? well, now, in the far right-hand side of the screen, of this chart, you can see that it was nearly an 8% moves in the today, so getting to a, let's become a record low, 32.8. it is down this year, down 19% just this month, so what is going on? well, we have to remember that

electedt macri was three years ago, taking over from a socialist government, and the idea was that he would restore growth. they are now facing their second inflation -- recession in three years, inflation is high, and they have the world highest these imfate, so with payments being frontloaded, a move to reassure investors, "we have got plenty of money. we are not going to do this month by month to get there is no risk that we will default down the road." you read our bloomberg, you will see one quote about desperation, and yet, other investors are saying, hey, look, this could be a buying opportunity. kathleen, it is not just the peso, of course. turning bearish once again, the lira back in play, last year largely on holiday, and these are kind of individually

idiosyncratic stories that are going on. you have tos, but remember that all come from one story about the federal reserve interest rates and the stronger dollar and a trade war and all of the tensions around that and even the threat of u.s. sanctions. that is the big thing that hit turkey, and then there is the south african rand, and the south african national congress, if they go ahead to expropriate land from white farmers, making people think that maybe the u.s. will put sanctions on them, as well -- you are correct that there are some idiosyncratic stories, but this started the federal reserve, haidi. you, our global economics and policy editor kathleen hays. and from the center of strategic and international studies, with four decades of experience, our

guest. the kind of bearishness that has taken another turn, and to carry on from our conversation with kathleen, are these idiosyncratic stories within each of these economies, or is it much more of a systemic -- i guess, without the threat of contagion? thank you for an excellent question. i think one needs to think about emerging markets as a highly diversified group. crisis,after the asia many countries around the world put in place much better policy and built up buffers, -- policy frameworks and built up buffers, and i think they are well adjusted to deal with it. some idiosyncratic stories out think to be sure, but i

they have been slowly differentiating. i think you are right. i feel there has been more contagion than i would have expected a few weeks ago, but i am still of the belief that we should be thinking about idiosyncrasies. you know, turkey's vulnerabilities are extremely well known areas they are well documented. they have been with us for a long time. new there.thing we can economic policies. nothing new about tensions with the u.s. and turkey or aired on.e -- or erdog and as you reporter was saying earlier, president macri inherited a very shackled economy, and he tried to put in

place a policy of globalization while tying it to fiscal policies to not throw it into recession, and this adjustment was associated with borrowing and the current account deficit, the overvalued haze so the bank, the overvalued inflation, and then it can no longer be marriage, so he went to the imf. he went and frontloaded the fiscal adjustment. financing, and that seemed to steady conditions for recentntil the region -- turkish volatility happened. they responded by raising interest rates five percentage points, and at this point, it seems that, once again, argentina's trouble -- they are and i think that

is a wise move and will be healthy for them. ramy: all right, mark. hold on just a second can we have got some breaking news across the bloomberg terminal. the foreign minister from canada right there, and these are live pictures, speaking in washington, d.c., and she is now saying that officials are set discuss nafta late into the night be at that is the latest. just now, she did come out of the meeting -- well, she started the meeting at 5:00 p.m., which was supposed to be with light eyes are -- with ambassador lighthizer.re -- more perhaps coming from him as well as president trump. haidi: let's get back to our guest.

a detailed deal with mexico, potentially, in canada, to get back involved, as well, after these discussions. is there an indication that we are seeing a softening of tone or conciliatory situation with trump? they cannot do this with every single trading partner. see attentional silver linings. there was the truce with europe and mr. juncker. we have seen progress with mexico. we are in talks with canada. i also think it is very important that the political race, the presidents lyrical base, in many -- important that the political base, the president's lyrical base -- political base is important. china,always felt with we have needed to forge an

alliance to try to isolate china and bring pressure to bear on them, so i think perhaps there but ime silver linings, am not a mind reader. i cannot predict what is going on at 1600 pennsylvania avenue, and i think i would be incredibly remiss if i were to suggest to you that the and thatforth is over we are looking at better days ahead. i think it is premature to reach that conclusion. amy: all right, mark sobel, former official in washington, d.c., on the trade war and resolutions. thank you very much. all right, coming up, elon musk has taken tesla on a tumultuous ride recently, and it continues as one of its executives takes a leave of absence. more details on that next. this is bloomberg. ♪

ramy: welcome back. handleas been forced to recent turmoil spurred by elon musk without his head of human resources. hasabrielle toledano confirmed she is on a leave of absence. tesla has been on a bumpy ride since the no private plan has gone defunct. let's look at this with our reporter. has had all sorts of management turnovers lately. why is this significant? reporter: gabby's leave is significant. we do every situation where i guess it is similar where you do not have a lot of women at the top. it is also just significant because of what has gone on with the company recently, not only because of the take right at drama that you mentioned, but

leave wasse heard preceded by this massive restructuring that the company did in which they cut 9% of the so for her to have to take a big role in that massive job cuts and then so soon after that go on leave is a significant development here. now, elon musk has been and continues to stir things up on twitter. it should not a surprise. but as an investor, probably, you are just wishing that he would stop. i would think that is a safe assumption, and you also hear that from some of the bulls. would caution expecting that come up to kerley what you have seen from the board. i would caution expecting that, particularly when you have seen what has come from the board.

they have come out to say there is full support for the ceo, so the board is not going to crack down on him. reasons sort of little here for us to think that he is going to change his ways. haidi: yes, and take a look at ford. turning bearish on this idea and their restructuring plan? that was a big development today. now, both moody's and s&p have them on the verge of junk status. that would be a significant development. it was in junk during the financial crisis. and got eight the of money because of that were able to stay out of bankruptcy, unlike oney, they got a ton of m under mullally. and there is a range of things. they said in north america, their margins are

underperforming and shrinking. definitely their strong suit, but overseas, they have problems in europe. to hurt, andng they are losing money in south america in a big way. haidi: thank you, craig. let's take a look at what has happened in the last hour. tpg and vodafone reaching a deal. not had an easy time in australia. in fact, it has been quite a complicated, high-pressure environment. does this change the outlook? reporter: that is right, haidi. coverage issues, and customers have been known to complain in some areas where vodafone has been a bit touchy. that said, they build up the millions, andby that is certainly not is

certainly not insignificant. what this deal does do is it strong presence in the broadband space with vodafone's relative strength in the mobile space, and this could take them to another level in terms of the us trillion market. haidi: does this change their competitiveness? james: yes, dies. we have had essentially a medications.the they have had a hold on this market, and we have had players and vodafone trying to get into the market and not making it, but this really has made them into a third force in this market. ramy: all right, james, what does tpg need to do? tpg does have a heavy debt burden, partly due to theperception pertaining to

spectrum auctions here in australia. this deal will help them considerably, i think, in getting that under control, as they got the financial market with giant players like vodafone ,nd hutchison behind this deal and they are not really going to have to raise any cash for it, so it makes sense from their point of view, from a financial point of view, when these two together.spects come it is a real game changer for both of these companies. ramy: james, thank you. our sydney bureau chief. and using our bloomberg terminal, you can touch up on key analysis and see charts and save them for your future reference. this is bloomberg. ♪

this is "daybreak:

this morning, and coming up, "daybreak: asia." yvonne? haidi, we have a guess, the samsung ceo just months into his new job after the short seller had a report with questions about the resume, the dealings with the family businesses, and overall the question of corporate governance within this company. where does it go from here? we will be asking the new ceo, where to go from here, and on the flipside, the fundamentals of this company, record results for earnings this year, so we will see. tariffse tensions with and tumi. and then the weathering of

potential further hikes when it comes to tariffs. the next hourr in after, we are going to take a look at what is happening with the asia markets. what is your first read there, with standard chartered bank and eric robertson. of course, here in the united states, we saw the s&p and nasdaq hit new records and if market,ects the asia and he goes into that, and then he includes the thai baht, and speaking to the central bank governor just yesterday, and it is interesting that there is some contradiction and that. i will save that for later. and, yvonne and coming up, a live interview with berkshire hathaway's warren buffett. is 11:30 a.m. in new york,

and we will talk about his stake in india and what else he is watching as markets continue to hit market highs. this is "daybreak: australia," asia" is next. 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." day, another record. offset new highs. the s&p closed over 2951st time. trade remains the driver. 2900 for the first time. trade remains the driver. ramy: it is just past 7:00 p.m. on wednesday. clouds are gathering over emerging markets once again. faster credit from the imf. amazon approaches apple's