>> emerging markets remain under pressure. argen tina faces judgment day. >> meantime turkey vows to refashion monetary policy after the slump in the lira and with inflation at its fastest pace in 15 years. >> trade trumps gulf. the president canceled a labor day round to work the phones. mexico says canada must be in a post nafta deal. >> china rebuffs criticism of its initiative.

he says he is not interested in "mere vanity projects." >> hello from sydney. just past 8:00 a.m. this is daybreak australia which is two hours out from europe's first major markets. >> it is just past 6:00 p.m. here on a monday. good morning. over the six hours we'll be looking at reaction here in the united states and across the united states and how it will play into your asia trading day. markets here were closed because it is the labor day holiday. rising just a tad again on the first trading day of the month up 0.1%. we can see also in terms of emerging market currencies the argentinian peso still near the record highs weakness 38.4 ageps the dollar. the turkish lira at 6.6. that had come off the weakness earlier today because the central bank hinted that a rate

hike might be in the cards at the september policy meeting. you can see the british pound at 1.28 there because there has been friendly fire as well as not so friendly fire from theresa may's colleagues in the u.k. as well as from the e.u. so that's your wrap of the major movers here for the currencies. haidi, over you to. >> we'll continue to watch emerging markets. argentina has come out with a plan to get back to fiscal surplus by 2020 t remains to be seen whether markets will be convinced. let's look at the setup here in asia. trading in new zealand just getting under way taking a little flat start to the session there. the kiwi dollar as well as the aussie we're seeing extending some of the declines of course the kiwi dragged lower by the aussie as we had the miss on retail sales the aussie dollar trading at 0.7210 ahead of that decision. no expectations.

expected to keep the benchmark rate at the record low 1.5%. expectations moved out well into 2020 by now. let's get you in the meantime, first news in singapore. reporter: haidi, mexico's outgoing president says the potential nafta replacement must include canada. nieto says his country wants to participate in tri lateral talks and that it is important to keep canada in the agreement and also says mexico has not accepted any restrictions in the current talks with the u.s. president trump has indicated he might exclude canada from he potential deal. turkey's higher interest rates highest rates in years. they called it significant price risks. the lira strengthened after the announcement but later reversed

course and weakened. china is using a meeting of african leaders in beijing to ounter criticism that plans in the continent are settling emerging economies with debt. the forum and china acquisition provides a high profile chance for president xi ping to defend the initiative and told the audience he has no interest in forming an exclusive club with competing vanity projects. one of thailand's leading political parties says it is confident long-delayed elections will happen next year. repeatedly they've put back a vote but says it should take place in the first half of 2019. the prime minister told bloomberg he is optimistic although he has yet to say if he will run for office. however, he says his democrat party offers the best alternative. >> i don't think the country has to choose between a krupit

regime and a dictatorial one. the thigh people -- the ty people deserve better and the democratic party will do its best to represent that alternative. >> global news 24 hours a day on air and tictoc powered by twitter. more than 2700 journalists and analysts in more than 2100 countries. this is bloomberg. ramey: thank you very much there. argentina is set to tax exporters in hopes of fixing its worsening financial crisis as well as balancing its budget. the president hopes to whip finances into shape by 2019. that is a year earlier than planled. >> we are seeing technical details that will be ready in a matter of days and this will allow to clear up whatever doubts exist regarding inning 2019. >> officials meet the i.m.f. later tuesday to discuss speeding up payments from the $50 billion credit line it has.

over to buenos aires now and bloomberg argentina's equities reporter. what is the main takeaway from the government's message here? >> one of the biggest differences from last week is that the government presented a clear, concise, unified front where they laid out a plan which was something that had baffled investors last week. first president macri came out with a strong statement pledging to fix the economy and clear out any doubts about the country's ability to fund itself. later that day, the treasury minister explained clearly how the new export taxes will not only help the government but high school reach a surplus by 2020. it is estimated that the new export taxes will allow the government to receive an additional $9 billion that

wasn't previously taken into account. of course that also means reversing some of macri's campaign promises on some of his initial actions which included cutting back on expert -- export taxes. in a country where he had pledged to restore -- resolve the issues gradually we are finally seeing some of the shock therapy the market had been asking for. ramy: shock therapy there. is it enough to really calm the markets down then? >> we'll see the test on tuesday when the markets reopen. there's been very low liquidity on monday because of the u.s. holiday. we saw low liquidity in the argentine peso even though the central bank had to sell a hundred million in the equities markets but still hovering near record lows and we'll see bonds reopen in the morning. so that will be a key test. so far investors have praised

the fact that macri has pledged to reach a zero primary deficit by 2019. one year earlier from the previous agreement with the i.m.f. it is a question of whether it is a bit too late for investors who have been wait forgue this kind of message for sometime. haidi: what are the next events we should be watching for? >> there are two main things to keep in mind. first will be through the week investors will be watching for news on how the talks by the government develop and continue with the i.m.f. the government has said that they hope that talks will only take a few weeks. the final decision still has to be vote onondaga by the i.m.f. board and beyond that there is also argentina's 2019 budget. that has to be voted on in congress and is another test for macri because he does not have a majority in congress. that means his ability to create deals with the opposition will come once more

and that will be another key thing as argentina looks for more stability. haidi: thank you so much for joining us our bloomberg equities reporter in buenos aires. our next guest notes we are now in a seasonally weak period. rising threats around trade and emerging markets contagion. ongoing fed rate hikes. also the midterms of course looming with a bit of political risk you can say building up as well. let's get the details from shane oliver here with me in sydney. great to see you. good morning. >> thanks for having me. haidi: we were just talking about argentina, talked earlier about turkey and inflation and the oil price problems leading into the currency issue as well. i find this really interesting. the argentine peso is not even part of the index and yet you are starting to see this correlation of contagion dragging everyone else down. is it possible to actually --

in this kind of environment where momentum is going -- >> it is possible but you have to move very quickly. it is similar to what happened in the asian crisis and what happened in europe. once investors start worrying about one country then of course they look around to see whether there are other tchurents might buy similar risk. the two countries most vulnerable at the moment are argen tina and turkey. as they've gone down investors have thought well are there others? brazil? obviously one. countries that have large current account deficits, high levels of foreign debt. larger deficits. naturally they start looking round. of course the scale as bit amended there. the argentina peso has crashed where as e.m. currencies generally haven't had quite the same crash. you are seeing that degree of contagion starting to flow through as investors fret about other emerging markets.

don't forget the emerging world has set a lot of inflows over the last few years, a lot into debt related instruments. mainly in the private sector. and of course that then creates worries about them at a time when the threats to world trade, because of the tariff issue and worries about china slowing down. so all of these things applying on the emerging markets. >> here in asia you've seen this interesting phenomenon where you look at the likes of india, the likes of even australia. you're seeing the currency getting punished but equities being rewarded. is that a compelling trade? >> the funny thing about asia is, the center of the crisis that started back in 1997 and became a broader emerging crisis in 1998, this time around looks from pretty good shape. countries like thailand which started it all back in 1997 has surpluses today and doesn't have a fixed exchange rate. a very different situation for asia. i think what is happening there is investors are saying if the currencies go down it makes

them cheaper and more attractive at a time when the share markets are already quite cheap. so you can say this group -- there is group buying potential here in asia at this time. i don't think the emerging market applies to parts of latin america, turkey obviously, will apply to asia generally like it did back in 1997 and 1998. ramy: shane, if there were one hot spot in asia where would it be and why? shane: the hot spot i assume you mean a country or countries that might be vulnerable to what is going on in argentina and contagion from that. i'd probably nominate two -- fill mince and indonesia are probably the most vulnerable it terms of deficits and they've already seen a bit of that in terms of their currencies coming under a lot of pressure. so philippines and indonesia are the ones to keep an eye on. if you think back 20 years ago it was a lot more broad based than that. of course we included thailand, korea, malaysia, and so on.

the rest of asia i don't think has anywhere near the vulnerability that aplayed back then. ramy: let's push ahead to the r.b.a.'s decision here. what are your thoughts on what we should be expecting? put that into context as well if you could. >> the context is the aussie economy is growing but not enough to cut into spare capacity. we have a lot of spare capacity which has led to low inflotion ratings and very low wages growth. if you want to put some context on that the core inflation rate in the u.s. on both measures is around 2%. the core innation rate defined as the u.s. defines it has inflation, 1.6% and of course the reserve bank -- they're below target. very, very low wages growth as i said. housing market is falling. against that backdrop very hard to say the reserve bank rising interest rates today and indeed i think very hard to say the

reserve bank interest rates raising for the next couple years. this is not the u.s. our cycle is fundamentally different than the u.s. and we saw yesterday house prices continuing to decline down 10 months in a row now. very, very hard to see the reserve rising interest rates against that backdrop. haidi: you get the dollar right and everything else is sorted out. what is your outlook? >> the green back still has more upwards pressure i think as long as trade remains an issue. you've got an emerging market and trade will continue bubbling along. there will be moments of happiness like last week in relation to mexico. hopefully maybe canada and then of course back again when we focus on the u.s.-china relationship. plus you have the fed thfment ongoing -- the fed meets every three months. i don't see it speeding up any time soon but i think that will continue and that puts upward pressure on the u.s. dollar. not in a straight line. probably do a bit of a correction. but i think the broad trend in the u.s. dollar will be up and

for our countries like the aussie dollar will be down. haidi: always a pleasure. shane oliver will be staying with us and we'll get more insights next talking about how investors should position themselves with more market swings as trade uncertainties continue to worsen. ramy: later in the hour, haidi, from debt relief to new financing we take a closer look at president exi's china-africa forum and criticism of the belt and road initiative. this is bloomberg. oomberg.

haidi: instead of relaxing on the golf course on labor day president trump has been working the phones on trade with canada and china. bloomberg white house editor joins us now from washington. does the president really want o stay in a post nafta deal? reporter: it's good question. he wants a deal with mexico. it is hard to tell if he really

wants canada to be a part of it or not. the threat over the weekend toward congress was quite strange. he essentially warned congress not to stand in the way of a bilateral deal with mexico and said it is not politically necessary to have canada in the agreement. he does not appear to have any support in congress for that position. haidi: is that likely to change in terms of the support that he has? we've heard some pretty kind of tough talks from the president, almost warning congress not to get involved. reporter: right. i don't see a lot of lawmakers coming his way on this. it has been a long-time ally and trade partner of the u.s., our largest trade partner something like half a trillion dollars of commerce between the two countries every year. it's too important a relationship to a lot of members of congress. i don't think that the president is going to get his way here. ramy: alex, looking to september 6 the drum beat continues there with that tariff round on $200 billion on chinese imports.

again, seemingly likely this thursday but what if anything is going on behind the scenes here? >> we haven't heard much behind the scenes at all which probably ought to be worse to investors. i don't think the white house is working hard to stop the tariffs from going into effect. we were told last week that the president is prepared to impose them as soon as the comment period on the tariffs expires on thursday. so i would expect that they are going to take effect. ramy: we'll leave it there. the latest off what is happening between the u.s. and canada as well as the u.s. and china. all right. np 's bring back in a capital's shane oliver still with us and focusing on trade right now, let's talk about what is happening with mexico and canada first? hop into the bloomberg terminal here. i'll show you as well as our viewers the trade deficit in question between mexico and

canada. in mexico that would be in the white line here. blue would be here in canada. let's talk about u.s. and canada first. fairly ions seemingly positive, shane, we might get a break through not a breakup. what is your assessment of market risk here? shane: i think the risk is quite high but on balance i think there will be a deal. it's in both sides' interest. i think trump wants canada onboard and what he wants to do is minimize the fights he has with the traditional allies so he can focus on china. the risks are high. some would say it is in trudeau's political interest to keep resisting trump on this one. that's why i say on balance, yes. there will be a deal but it is a very close call. ramy: if the risks are high there i wonder what you want to say when it comes to u.s. and china of course we have the drum beat i mentioned to september 6 on the $200 billion that will be tariffs. how are you pricing that risk in?

shane: i think all that is a certainty that something will happen after thursday. the debate is the timing. is it straight away or do they wait a few days, wait until next week? i think they'll probably go fairly quickly. the other debate is how do they phase it in? straight away? don't forget the initial round was 30 billion but they phased it in with 34 and they might phase this in doon it in installments. haidi: do you expect, markets are rallying very easily on a little bit of good news. if that 200 billion -- is it going to be a rude awakening given we ended last week with the u.s. dollar still at record highs? shane: that is a good question. i suspect it will be a rude awakening but by the same token you could say everyone should know about this. we've been talking about it for months and months. the funny thing is every time trump does it, he says he is doing 50 billion and then when he did 34 there was a bit of a

selloff. that's why i think we probably get a knee jerk sell off on the back of this depending how he phases it in. i suspect markets will then go on to the regular stuff. what profits are doing. what the economy is doing. if it is ok then the market probably resumes the upswing. but i am nervous. it is a tougher time of the year. september/october. this time of year we talk about anniversaries. anniversary of 87, anniversary of the 1997-98 asia emerging market issue. so these things are reminder this time of the year does have financial accidents and does have volatility. my feeling is markets will get over this thing until it impacts economic data but i am conscious. i do think this is going to be volatile time in markets. haidi: you've spent time in china recently. the retail investor is so down at the moment. what is the kind of feeling that you get, opportunistic given how cheap --?

shane: yes. it's like trying to catch a four way knife at the moment. the risks are still very high. on the ground i think things are still zooming along, lots of traffic, lots of traffic jams. no sign of much difference compared to six months ago but by the same token it was a bit more -- people i spoke to were a bit more wary of things and nervous about what might happen in relation to trade with the you u.s., nervous about the share of banking slowdown so the nervousness is there. i don't see china is at this point rushing into their equity market. i think this volatility might continue for a while yet. it is certainly not expensive. there is value in the chinese share market. if you're taking a six-month view you might be better off holding off. ramy: we'll have to leave it there. shane oliver head of investment strategy and chief economist at a & p capital thank you as always. remember bloomberg users can interact with the charts there. you can browse recent charts featured on bloomberg tv to

catch up on key analysis and you can save the charts for your own future reference. this is bloomberg.

>> you are watching daybreak australia. let's do a quick check of the latest business flash headlines now. tesla is reported to have missed its target of 6,000 model 3's a week last month but is seen hitting the overall goal in the third quarter. transport podcast electric says the company has been aiming to make 50 to 55,000 model 3's in the three months through september. sources say it turned out about 53,000 so far the same total as tesla produced the entire second quarter. haidi: said to be finalizing an internal investigation into

claims. the f.d. reported as much as $30 billion flowed through the unit in a single year though the paper notes it doesn't necessarily mean laundered money. the bank admits the situation is complex and says no conclusions can be drawn at the moment. ramy: it expects to settle u.s. investigations into alleged sanctions violations in the coming weeks and that any final penalty will be within estimates. the bank says it has entered more active discussions with authorities looking at dollar transactions involving countries under u.s. sanctions. socgen has set aside $1.4 billion for expected fines. all right. still ahead an exclusive interview with the former thai prime minister on his hopes for an election next year and the prospects for his democrat party. all that coming up. this is bloomberg. ♪ ♪

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time get 150 dollars off and free shipping too. sale prices are available right now. go to buyleesa.com today. you need haidi: it is 8:30 in sydney where markets open in 90 minutes time. the day holding a decision, albeit not a very exciting one. expectation that the governor will be moving off the record low 1.5%. expect ags for the first move pushed out by some indicators out to 2020. a little insipid start there to the start of trading here in sydney. ramy: at 6:30 p.m. here you are watching daybreak australia. let's get the rest of our news. good morning. >> ramy, good morning. president trump is again attacking attorney general jeff sessions blaming justice

department indictments against two republican hypocrisy for endangering seats in midterms. prosecutors have charged california representative duncan hunter with corruption and representative christopher collins with insider trading. the president tweeted good job, jeff. democrats must love him now. hong kong's central bank is expected to intervene in the currency markets even more this month. authorities spent more than $4 billion u.s. in august to support the local dollar and expect more of same this month as the fed prepares to raise rates. that is seen drawing funds out of the city and keeping the currency at the weak end of the trading band. brent crude rose to the highest in almost two months on slumping exports from iran as asian buyers order less in the weeks before u.s. sanctions take full effect. all traders are watching saudi arabia and russia for signs they will fill any potential gaps in supply due to

restrictions on iran and the meltdown in venezuela. russia pumped near post soviet ecords last month while output was the highest this year. diamond buyers were able to reject lower quality products. they usually require buyers to accept what is offered but made a similar gesture in 2016 when india's ban depressed demand. the diamond market has been hit by too much supply and by man made stones such as debeers own brand. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 courns. this is bloomberg. haidi: thanks for that. let's get you a quick update on the markets. in the meantime getting trading in new zealand getting under way for the morning part of the session looking pretty flat at the moment. the kiwi dollar trading at 660

to a little bounce there and the aussie dollar feeling the pressure after retail sales missed the market yesterday. a bit of a mixed read when it comes to china in terms of the p.m.o. over the last few days as well. course going into today's decision day no expectations to move off the record low 1.5% this month. taking a look broadly across the region this is what dollar/yen is trading at in the early part of the session. sterling looking like it is sort staging a little bit of recovery. of course more pressure overnight as we continue to get the volatility over the he said/she said state of brexit negotiations anding up to the october/november deadline as well. of course we didn't have trading in the u.s. on account of the labor day weekend there but certainly u.s. futures are looking a little positive going into the delayed start to the trading week. let's get more on what we should be watching as trading ets under way in asia.

first we are looking to see if we can get the post nafta deal of course and then to china. >> those are big clouds that remain on the horizon. you can see how it has been hurting just about every asset class except american stocks. part of what is going on here is there isn't really a lot showing up in the hard data but in the soft data we're also seeing sentiment decline. we've got a chart here to show you on the terminal from the gtv archive. this shows japanese and german manufacturing outlook indexes. these are from the purchasing manager surveys and you can see how germany and japan, two of the world's biggest countries that make things for export are -- they've come right off since the end of haft year amid all the trade concerns and you have msci world excluding the u.s. and you can see how it stays up this for a while and then it comes down, too.

i think as long as we'll have this trade pressure hanging around and it is going to be quite sometime, manufacturers are going to go on being nervous and so are markets. ramy: the dollar is holding for sure from the end of last week but how sustainable is the latest rally in the u.s. currency? >> the u.s. dollar, it seems to have made a robust climb up from some slightly low levels a while back and now i sort of see it as being poised to spring forward in september. i could be totally wrong on this. when you consider we'll get the fed meeting and we're going to get a rate hike and we're also almost certainly going to get very strong guidance that they expect to raise in december, if we take a look at the chart just coming up on the terminal you can see this shows the blue line is the gap between the current fed rate and the average of the rest of the g 10 central bank.

it's been climbing up and is about 1.5 percentage points, the level last seen back in something like 2006. the white line is the expectation for what the gap will be in a year from now. it's going to be even wider, about two percentage points. when you look at that you think first of all the u.s. dollar is helped by the rate differential in and of itself. secondly, the underliing dynamic is that traders, economists, they see the u.s. economy continuing to be stronger than most of its peers and that is also going to feed dollar demand. so that is why i think this month is likely to be a good one for the dollar. ramy: continuing the trend. garfield reynolds, thank you very much. don't forget to check out our gtv library for some of the charts you just saw there on gtv go on your own bloomberg terminal. all right. looking ahead now as wall street prepares to kick off the holiday-shortened week earnings as well as geeo political issues are likely to be two

very big drivers. also a jobs report and a technical factor some call post holiday cheer. >> the direction question is big. we've come off a week of record-setting highs. do we go higher from here or do bulls cash in their chips? we'll get to that in a minute. it hooks like a lot of green as you know. markets were closed on monday, getting ready for the opening bell. looks like the futures are trading higher. oil will be in the spotlight as will bonds. a lot of bond auctions may grab a lot of attention. but the direction of stocks will clearly be at issue. let's go into the bloomberg. gtv is where you can find our library of charts like this. this one shows that as the s&p 500 has come higher the white line the blue line which is the aggregate analysts' targets have gone even higher forecasting a higher year-end close. that is the two schools of thought. there is one school the technical analysts say when you

come back from labor day in a bold year you are likely to go higher from there. the lly, however, one of many publications out there warning over the weekend september typically not great for stocks. let's take a look at social media which will be in the spotlight as facebook, alphabet, twitter, their heads appear before congress to testify about the russian election interfeernls. facebook's charles sandberg will be there. google's c.e.o., and high school there will be twitter's jack dorsey. that clearly will grab a lot of attention and back into the bloomberg one more time in terms of these social media stocks we have seen them pretty much regain their gusto in this latest runup to records. we've got the amazon down at the bottom here coming close to a trillion dollar

capitalization. and so there are many questions as to whether the bulls in these stocks are going to be reining it in as we get into september. haidi: looking ahead we have major jobs numbers out this week and a new round of earnings as well. what are you looking out for? su: we expect analysts' surveyed by bloomberg about 192,000 jobs added. unemployment rate 3.8% expected to be the lowest since 1969. let's look at some of the companies reporting earnings. earnings very much continuing to be a driver particularly with tech stocks as you see broad com will be reporting. quickly to oil it's been above 70. rising to the highest we've seen in a month. as the dollar has steadied just a bit and supply issues have come back into the fore. quickly to gold which many are saying is no longer really a safe haven place but analysts say with the trade concerns back in focus we know trump was focused on that over the eekend gold could catch a bid.

haidi: finally maybe gold can catch a bid. taking a look ahead as we round out the labor day weekend and trading restarts in the u.s. coming up china pushes the belgium road initiative. this as the president pledges debt relief for poor african partners. live in beijing next. this is bloomberg.

ramy: now for a look at some stories trending across the bloomberg universe and currently topping the terminal's most read list is a story about the arrest in the u.k. of a still unidentified banker on suspicion of bribery. meantime on bloomberg.com abu dhabi's plan to combine three banks into the gulf's fifth biggest lendor. over on tictoc how much alcohol is actually good for you? apparently no level of alcohol use is safe here. that is according to some research there but probably to

the chagrin of many people watching right now. check out those stories trading on bloomberg online or on the terminal. haidi? haidi: everything in moderation, ramy. all right. let's take a look at china where the president is promising debt relief for poor nation ness africa as he pushes back against criticism of his signature initiative. he high school pledged new funding for the opening of the china-africa forum in beijing. our correspondent is watching all of this. what has the record been saying? >> the top line as you say is that we've seen president xi mounting a defense of his key belton road initiative in front of leaders from south africa and nigeria and here in beijing at the opening of all of this china africa forum, an annual event. he was pushing back against some of the criticism we've seen recently whether from the i.m.f. or the u.s. secretary of

state or from the prime minister of malaysia of course warned about the initiative potentially being a new version of colonialism and putting on hold this $20 billion rail project in malaysia. so there's been criticism this project around what many see as the risk of indebtedness of some of the countries on the receiving end of the credit and financing and also some transparency issues and issues around the hiring of local workers. all of these issues have bubbled to the surface. president x really focusing on the question of debt. as you say outlining a strategy to give debt relief to some poorer african nations though we didn't have the countries named. he also outlined a new line of credit $60 billion worth of credit. some of that is going to be interest free loans apparently, some grants and some more standard lending to the continent. so it was interesting that he has apparently taken onboard some of this criticism and of course we spoke to some of the african delegates here yesterday attending the event.

you heard for example from the oil minister of nigeria. he said he welcomed the investment from china and said it would help nigeria shake off some of the vestiges, the legacies of colonialism. we also spoke to the head of a major nigerian state. he says he expects infrastructure projects financed by china potentially to double his state's g.d.p. in the next few years. haidi: tom, how significant though are trade ties between china and africa then? >> really the ties between china and africa date back to the 1950's when china's leader at the time was sending aid to communist governments in africa or those affiliated with the communists cause. of course it is much more sophisticated and much more ingrained now. the trade relationship is worth about $170 billion u.s. it grew by about 14% in 2017 according to chinese statistics . in terms of lending we saw financing from china to africa

increase from about a hundred million dollars in 2000 to about $12 billion in 2015. so the credit has expanded along with the trading relationship. and china has its first overseas military port as well so there are geo political concerns for china. really this is a trade relationship expected to expand in the years ahead. china is relying on many of these countries for oil as well as other commodities, agricultural products. president x saying part of the reason, part of the focus was to unclog some bottlenecks around development he didn't want to see white elephant projects. yes, president xi for another couple days. we expect more deals to be signed as the conference continues here in beijing. ramy: all right. thank you very much. shifting gears to southeast asia now, one of thailand's leading political figures is confident his country will return to democracy early next year. the nation has been ruled by the military since a coup back

in 2014. and repeatedly they've pushed back a vote. the former prime minister and leader of the thai democrat party tells us he believes an lection is now on the horizon. >> i'm not sure it will be in february but we have confidence it will be held the first half of next year. >> what will your democrat party bring to the table? why should people be voting? >> we offer a different alternative. we think the country needs to move away from the current, somewhat conservative and bureaucratic and centralized regime which cannot address some of the fast changes appening in the world. we do not think the country should go back to krupit regimes and centered aplease -- we don't think the country should go back to krupit regimes. we want a paradigm shift not just in terms of taking thai

politics away from confrontational politics and addressing issues that matter to people but also that we will have an elected government that also has a clear path for sustainability. >> even if your party were to win there is a chance you may have to work with the current prime minister because the constitution has been amended and the legal framework is being worked on right now to put the military still in charge. how would you go about doing that? >> we would ask the people for support. if they give us enough support we would be the core of the government and dictate what kind of policies should be implemented. the democratic party is not interested in joining any party that would take the country in the wrong direction. >> so the constitution needs to be amended again in your view. >> there are some undemocratic elements, some provisions that could be obstacles, to the things that we want to do for the good of the country. but we would seek a broad consensus because we don't want the constitution to be yet another conflict point.

>> you helped orchestrate the fall of the last government. given what has occurred over the last four years having the military in power do you now view it was possibly a mistake that you did? >> no. my stance was that i did not accept a corrupt government. i don't think that the country has to choose between a corrupt regime and a dictatorial one. the thai people deserve better and the democrat party will do its best to represent that. >> post elections what policies are needed for thailand to go forward? >> a quick revival of the economy is needed. not the broad g.d.p. figure. but the income of ordinary people particularly in rural areas. there have been -- they have been hit hard over the last four years. in many provinces incomes have declined. we need an active, proactive policy that will help farmers, for instance, and also we need

to move forward and make sure there is better security for people. >> some say your party's policies are pretty outdated. your response? >> i think the policies i have mentioned just now are far more progressive than what many countries are practicing. so it is not a question of outdated policies. i recognize in the past that the appeal of some of our policies could not match the pop lift -- populist policies of our rivals but those policy -- policies have proven to fail again and again. they have caused considerable damage, opened the door for corruption. our policies in the past may not be as exciting but most of them can be sustained. haidi: that was the former thai prime minister and leader of the democratic party. you can get a roundup of the stories you need to know today in the edition of daybreak here

for tuesday in asia bloomberg subscribers can go to your terminal and also the mobile in bloomberg anywhere app. the page for argentina, turkey, still the top story. you can customize the settings so you just get the news on the industries and assets that you care about. this is bloomberg. ♪

ramy: you're watching daybreak australia. let's do a quick check of the latest business flash headlines now. few companies divide the market like this one. the most popular stock for foreign investors who bought almost $2.5 bfl the shanghai traded shares via hong kong connect but it is being ditched in hong kong by chinese investors who have sold more ping an shares than any other company apart from 10 cent. they are also selling on the

mainland. haidi: j.d..com's billionaire founder has returned to china after his weekend of rest in the u.s. he was reportedly detained for sexual misconduct involving a fellow chinese student at the university of minnesota where he is a doctoral student. local police declined to give details but say they haven't impose nid travel reobstructions on liu. ramy: competition to manage the money of asia's burgeoning army of millionaires is pushing pay headaches for wealth managers to the highest in more than a decade. those willing to jump are offered at least 30% in hong kong and singapore. cap gemini says 2,000 new millionaires were admitted to the region last year but credit suisse says the two cities have fewer than 10,000 wealth anagers. haidi: ramy, we were talking earlier in terms of what is tending on bloomberg right now, alcohol consumption a lot of i guess health experts saying that no alcohol is really what is best for you.

australians seem to be listening with alcohol consumption in this part of the world dropping to the lowest level in 55 years according to the australian bureau of statistics. take a look at this chart. you see the biggest decline when it comes to beer consumption being most responsible for that. beer though as you would imagine still the most popular drink ahead of wine. beer drinking like sports is essentially a national pastime. ramy: i thought you were going to say a national sport but i suppose that could also apply. the purple line there -- haidi: it goes hand in hand. ramy: the purple line, 9.4 liters. i did a quick calculation in u.s. terms here since we don't understand liters. 2.5 gallons of pure alcohol there. doesn't seem like a lot but in terms of what that might mean in terms of wine for example according to the study, 38 bottles of wine per year. you think about that across 52 weeks, roughly what, 3/4 of a

bottle each week, which if you break it down is actually, am i ok with saying it is not that much, haidi? haidi: i feel like it's pretty moderate. ramy, compare that to the mid 70's which is what they call of beer, 500 stubies consumption per person per year. that's it for "daybreak australia" this morning. "daybreak asia" up next. let's look at what is coming up. good morning. >> good morning. liquid courage and what is going on in the markets with e.m. in particular. continue to see the woes in argentina and turkey. of course it's judgment day. how are the markets going to react to president macri's emergency measures to try to save the economy out of a crisis? we're going to talk more about he e.m. fallout here with my guest. she has been talking about the risks are not going to spread

across the markets especially in asia but they are taking a little bit more of a selective approach in the space obviously. ramy: in about 45 minutes' our we'll be speaking to guest, the u.s. aussie business council senior vice president as well as regional managing director and analyze what potential fallout there might be for the southeast asian economic region there with regard to what is happening between the u.s. as well as china. he does say that it won't be all in one big go in terms of that $200 billion round of tariffs between the u.s. and china. he says it might happen along the lines of what we've been seeing in terms of the 50 billion we saw earlier but we'll analyze how it might affect aussie. haidi: also a pulse check when it comes to gold whether it is going to finally catch a bid given all of the volume tilts and trade -- volatility and the

trade war uncertainties. also getting views when it mes to some of the asian numbers pretty battered. this is bloomberg. ♪ ♪

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time get 150 dollars off and free shipping too. sale prices are available right now. go to buyleesa.com today. you need >> 7:00 a.m. in hong kong. i am yvonne man. welcome to "daybreak asia." the top stories this tuesday, emerging markets remain under pressure. turkey's thousand new policy -- turkey vows new policy. argentina faces judgment day, trying to balance the budget. officials had to the ims. -- imf. ramy: i am ramy inocencio in new york. golf.trumps mexico says canada must be in a post-nafta deal.