>> welcome to "bloomberg daybreak: australia." >> we are counting down to asia's major market opening. haidi: here other top stories recovering in the next hour. trading up, in the face of u.s. protection is that protectionism, president trump threatens to quit altogether. and growing mutual trust.

oil jumped the most since june, exploring the gasoline market could be one of the biggest storms in history. started with aou quick check of the major averages and how they finished here in the u.s. in tuesday's session. major averages in the green although there were fluctuations in the morning session. the dow up .4%, the s&p 500 but applehigher halting his longest losing streak since april. with all the nasdaq gaining .6%. the energy sector in the s&p 500 one of the big gainers with changing the most since june. hurricane florence heading to the u.s. eastern coast and threatening the gasoline market,

not to mention the iranian oil exports being threatened by sanctions now. theof this ready to set up market for asia. sophie, how is it looking? >> it looks like we may be set up for some midweek really even as asian stocks are trading at 13 months close, the lowest since february 2016. the hang seng is a bear market but there might be some concern as emerging markets are getting better with what's going down in brazil, and here in asia, policymakers may have matters complicated as we make inflation -- weight inflation pictures -- as we await inflation figures. 7:00ob support due out at a.m. on time that's expected to hold steady at 3.8%. after that tech rally we saw on wall street, we are anticipating that could help live suppliers here in the region.

so the cost be may be looking at some gains at the start of the session. that. thank you for let's get you to first word news with jessica summers. jessica: hurricane florence is expected to be one of the most powerful storms in history. it is strengthening as it heads toward the eastern seaboard. landfall is now late thursday or early friday with north carolina seen as the target. at least a million people have been warned to leave the coast and local businesses have shut down. , which hase boeing halted work it has planned for south carolina. the k and the e.u. are said to be preparing for a special summit in november to sign of brexit deal. were told several key issues remain to be resolved but brussels is ready to schedule a runoff gathering so leaders can formerly agree to the terms of the split. transfer the summit may be announced at the e.u. meeting in austria next week. stirring has risen recently on optimism about a deal.

saudi arabia's sovereign wealth fund will sign $11 billion loan this week, its first-ever borrowing. tim burke work sources say global lenders including goldman sachs, and hsbc and jpmorgan will be providing the loan. last year it was willing to borrow to diversify the economy and boost investment returns. bob woodward's book about chaos in the white house sold out on amazon just hours after its release. it's now only available through kindle and other audiobook as amazon rushes to restock. pick upiest buyers can a hard copy is september 26. barnes & noble says fear is available at its stores and customers will receive orders on time. 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 countries. jessica summers. this is bloomberg.

canada is poised to release of blueprint to reform the deputy oh in order to create a buffer from u.s. protectionism. president trump has threatened to leave the organization entirely, prompting canadian trade officials to work up a draft of the proposal called strengthening and modernizing the wto. more from our commerce editor. not surprising that we've seen things stalled in the deputy oh after the trump administration throughout the reappointment of that body. that's right, the main driver here or one of the drivers here is donald trump himself, by blocking the appointments of the appellate body that rules on wto rulings and also his threat to as heaw if it doesn't said in -- if it doesn't "s

hape up" as he said in an interview. the ministers that canada is working with are scheduled to meet later this month, but frankly anything that comes about in terms of a revamp or rewriting of the rulebook would take a fairly long time. haidi: and on the other hand you have china asking the wto for permission to retaliate against the u.s. for not complying with the ruling that is really from last year. >> right. the u.s. -- the ruling was the u.s. has improperly imposed duties on product lines including machinery, minerals and metals. the uss that it acknowledges that it has not yet complied with that but says it is consulting with what it says are

interested parties on how to deal with the recommendations. wants the wto to allow it to peruse -- impose retaliatory duties on the u.s., and all this comes amid the escalating trade war between the u.s. and china. >> taking morgan is the latest they are looking at an indicator that is close to the idea of maintaining social stability in china. >> a jpmorgan economists estimates that if the u.s. goes ahead and imposes tariffs on $200 billion worth of chinese retaliates byna devaluing the wine and imposing some retaliatory tariffs on u.s. asds, they can loses many 700,000 jobs. that number could go higher

depending on the circumstances with how they retaliate and how the u.s. reacts and whether the u.s. goes ahead with plans to impose tariffs on virtually all imports from china. so there is some escalating tension here in china, as the trump has -- administration has maintained, china is going to be feeling some pain from this. haidi: thank you so much for that, joe. as pressure from the u.s. grows, china and russia pledged to strengthen their ties. the two presidents met at the eastern economic forum in the -- but with china and russia facing tensions with washington. this joint message, what exactly does it send to the u.s.? right, many are saying

donald trump is really forcing their hand to pivot toward each other, not just economically. they have discussed a strategic partnership for years, but more politically and economically, yesterday speaking together, deal on northng a korea would not get done without china and russia's hand involve. take a listen. >> there's a growing cooperation between our countries and international organizations like the u.n., the shanghai: -- cooperation organization, and others. politicalntinue our and diplomatic efforts to settle the situation on the korean peninsula, according to the russian-chinese roadmap. >> the have a shared view in used opposition, the word is perceived u.s. global dominance. this is as the u.s. -- beijing is dealing with their own issue with the united states and the u.s. has sanctions continued on

moscow and potentially prepping for more. so really it is a show of unity, many say, against the angst they are feeling from the united states and donald trump wallace he's. -- donald trump's policies. >> we've been talking about the joint exercises as the biggest we've seen in 40 years. >> speaking to the financial some saying how major this is because for years, china was viewed as a potential threat for decades and now they're seeing a potential ally against any sort of aggressor. this is huge in terms of military gains. talking000 troops, were massive use of artillery and tanks and aircraft across siberia and the far east, and in the pacific. russian defense minister saying

they are being mimicked as close as possible to war as they can. in china media, there being touted as china's deployment as the biggest ever in terms of these wargames. nato has come out and condemned them. for china, it's seen as a sign of strength, especially what's going on in the south china sea, and from moscow, his nato is prepping one of the military drills next month in norway doorstep.utin's it's seen as a sign of strength against the u.s. and nato. despite the fact that russia keeps getting sanctioned and condemned by western countries, leaders are still flocking to the country, what is next in vladivostok? morning is athis massive plenary session, it's a it is a chinese

leaders first visit ever to this for them. he will be on stage with putin along with the mongolian and south korean leaders as well as abe. and the south korean prime minister also meeting with abe and putin. this is important ahead of kim's meeting with moon next week. border 80 miles from the russia shares with north korea. finally, they will all be watching a soccer match later this evening. mooncomes after xi and actually made pancakes together yesterday. it's not all business and geopolitics. shery: fun in building that personal relationship considered so important for diplomacy. thanks for that report from vladivostok. we will hear from some big names later, stay tuned for our

interview with the russian energy minister. trade as a, more on senior adviser tells us why people may be losing their patients with the trump administration's policy. >> and up next, good rising rates hurt? trust this is bloomberg. ♪

shery: welcome back. haidi: i'm in sydney. you're watching "bloomberg daybreak: australia." despite fears that trade war damaging the u.s. economy and political chaos from the next guest is increasingly concerned that the fed is suffering from tunnel vision and continues to hike despite the negative impact.

here in sydneyou with us. tunnel vision, is because inflation is that because of all the structural reasons that policymakers have been scratching their heads over? is there chance the trade war could prove to be more inflationary than we expect? >> we think the risk of tunnel vision is focused on raising interest rates and not aware enough of the collateral damage that is happening. we certainly seeing that through the dollar strength leading to emerging-market weakness. effect onlso a lag the economy. u.s. housing has started to soften so we do have some concern. taste that they charge ahead unwillingly without realizing the collateral impact their having. >> i want to bring up this chart .

we were supposed to have learned a lot of lessons from the global financial crisis. this highlights what has changed in global central bank rates since carney became governor of the boe. anotherre to face recession or financial crisis, the central banks of the world don't really have much room to move. is it better that they are creating more of a buffer now? >> we think the mistake in front of us is that if they prematurely raise rates to try to bill that buffer, they could put the economy into recession too early before they don't up sufficient dry powder. our view is they should be very patient. the fed seems to be charging had the most quickly. the ecb has taken a pair -- fairly patient you. we think a race to create dry powder would be self-defeating. >> when you take a look at business sentiment, it is peaking right now.

this chart shows small business confidence rose to a record high, showing the companies plan the most capital spending since 2007. when you have optimism this high, we've seen that the s&p 500 peaked three years later. in terms of market performance, do you still expect some room for markets to keep growing? >> we are still constructive on u.s. equities, that's our primary overweight to defend the equity markets. the u.s. market is the most insulated from the risk of trade and the risk of the stronger dollar because the u.s. is a pretty self-sufficient economy. the collateral damage is happening outside the u.s., mostly in emerging markets, but europe is at some risk of the fallout from a trade war. >> oh environment vineyard thinking going to get persistently low inflation and were seen the u.s. economy still

pretty solid, where do you reallocate your assets? do you still go into fixed income? do you touch inflation related treasuries? >> we met a couple of big changes in that regard this year. we put some fresh money to work in the bond market. we think high-yield wants look very attractive and we actually eliminated our tactical position in inflation like bonds a couple of months ago, reallocating to credit and high-yield. we just don't think we will have a pickup in inflation and so for the markets agree with that. thehen you look at proportionate damage is likely to happen to the chinese economy , what does this feed into your assumptions about oil demand? jim: we think there is a counterintuitive impact and you've seen that in the action of spot commodity prices.

they have come down this year because we think a trade war is bad for growth, which means it will be bad for demand. dollar strength is somewhat related but there is weakness in the rock complex well beyond what the dollar has done. complexescommodity have suffered much worse than that. there's some concern about growth in china. on emerging word markets, are you throwing the baby out with the bathwater? there is plenty of opportunity within solid fundamentals in asia. we think emerging markets have the best return potential of all the major equity regions. we think it will lack global equities because of concerns over dollar strength that the long-term picture for emerging markets looks good. >> thank you for joining us, jim mcdonald.

remember the charts we referred to, you can look at them on tv and catch up on key analysis and save them for future reference as well. this is bloomberg. ♪

haidi: welcome back. let's get a quick check of the latest business flash headlines. amazon has propelled it's the euro business platform to attend billion dollar annual operation, providing as much revenue as the web service itself computing division and the divisional at unit. the business operates in the u.s. and western europe as well as japan. alibaba is setting up a $2 billion joint venture with the internet service firms russian billionaire. the deal will merge the online

marketplace to strengthen alibaba's presence in russia in a move backed by the kremlin through the russian investment find. 12%. jumped as much as >> we want this to be a russian business because we know if it is a russian business and we combine capabilities, it will truly be an outstanding opportunity for both businesses and consumers. >> the company that makes records for serena williams and other tennis stars is attracting attention from china. bid for the company that owns wilson rockets and other brands. higher after18% rising as much as 30% earlier.

now to the most read story on the bloomberg terminal, the pull on the block has decided to turn away. nomura says the stock is no longer investable as the share price drop more than 4% before paring losses by the close. has the story. you really have to have a stomach for tesla these days. one of the biggest self-described bulls for tesla doesn't have the stomach anymore. you mentioned it fell as much as 4% and did pare some losses today but when your company gets downgraded from buy to neutral and your price target gets course by about $100, of the share price is going to take a hit. i want to show you where we stand right now in terms of analyst aggregations function. here we are for the most recent day, you can see these are the

buys here in white. the holds or at 11 and the sells are at 12 here in the green. tesla actually leads to s&p in terms of sell recommendations. this is also not a great superlative that you want to be talking about. let me switch at my terminal and i also want to show you what's happening in terms of the price target. the price target is at $315, here in blue. 200 79 is where the share price is right now. there are reasons for pessimism and optimism, but it seems like the reason for pessimism outweigh. podcastk was seen on a smoking marijuana. depending on where you stand on the issue, you're not going to

be happy about that, especially when it is not legal here in the united states. there has also been criticism on those calls as well, calling him a cave diver in thailand and a pedophile. some saying it does not inspire confidence. haidi: it's a lot to get your head around, cumulative controversies. but it's not all bad, one door closes and a window opens. >> this was from the spacex president and coo. let's bring up that full-screen and you can see for yourself what she said. is as lucid and capable as he has ever been. i wish people would not focus on triviality. but as you might expect, this is from someone within the musk

family, so take it as you want. haidi: aussie equities trading close to a decade high but analysts estimates are even higher. we will look at, maybe it's time for a reality check. ♪ xfinity mobile is a new wireless network

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haidi: it is 8:30 a.m. cindy -- in sydney. futures looking a little bit negative. we did manage to snap eight days of straight declines in the sydney session yesterday. the rest of asia looking pretty tepid. equities fall again, that would be the longest losing streak in 16 years. i am haidi stroud-watts in sydney. shery: that is huge. we will see if the u.s. markets gain around. i am shery ahn in new york. you're watching "daybreak australia." first word news with jessica summers. is said to ask

the world trade organization for permission to hit the u.s. with illegal antidumping regulations. certain u.s. actions broke the rules and arbitrators call for compliance. complied. fully beijing will ask the wto to approve retaliation against certain american products worth up to $7 billion. china and russia say they will strengthen ties in the face of threats from president trump. xi saidts putin and they trust each other in politics, trade, and defense. neither mentioned the u.s. directly, but xi underlined that russia and china agreed to oppose protectionism. it was their third meeting this year. china and russia both the responsibilities of maintaining world peace and stability and promoting development and

prosperity. we share similar views and common interests which form a strong foundation. with the current background of changes and growing instability and uncertainty, it is more important for china and russia to joy in our hands in maintaining international justice and fairness as well as the world peace and stability. jessica: russia launched its biggest ever world game. it will feature hundreds of thousands of troops as well as warplanes, military vessels, and 36,000 tanks. is even larger than the 1981 drill that ring alarm bells -- rang alarm bells at nato. is seeking to reform the wto to adjust to a newly states.onist united it is seeking an alliance of like-minded countries to restore

confidence in the multilateral trading system. ottawa says the nafta talks with the u.s. have been productive. the two nations remain at odds over issues including anti-dumping dispute panels and canada. >> we know that there is a good deal to be had that is good for canada, good for the united states, and good for mexico. indeed, trade is not a zero-sum game. it's a very possible and even out ofed it win-win-wins international trade deals. jessica: global news, 24 hours a day, and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. shery: let's go to sophie kamaruddin in hong kong with another check on the market. sophie: we could be in for a tepid session. that is the case in wellington with the nzx 50 trading flat. mckay futures nudging higher while the yen is holding a three-day decline. japanese investors will have the

byest data to digest, rising 5.3 percent in august after a long string of double-digit growth. watch for reaction in japanese from a stocks -- pharma stocks. also worth watching, nissan and other carmakers as nissan's north american chief says they may have ended their long slide. in korea, tech stocks may be the hero today and we are waiting on the jobless rate. it is expected to stay steady after a surprise pick up. over in sydney, we are watching thers as clarkson adds to chorus that metals and mining stocks are at a sweet spot as china is roughly halfway through its five-year economic plan.

we do have the asx 200 looking at a softer start this wednesday. haiti. haidi. businesses is -- from banks to chicken farmers say they are getting squeezed with rising costs. tradingarkets have been . decadeclose to these highs. you reckon it is time for a reality check. experiencinges are a lot of costs in australia. we are on course at the moment for a change in government what has historically been bad. the labour party has historically been bad for australian stocks. it really is a give or take. australian analysts have been pretty optimistic. maybe it is time to take a little bit of a step back. haidi: you say that the political situation -- we are

kind of used to the revolving door kind of leadership situation. it does not typically have a huge impact on market sentiment, but the policy paralysis is -- matt: it definitely is. before the change in leadership last month, the company tax cuts large-scale corporations did not go through parliament. there is still no clarity over energy policy. it will go to an election which is due in eight months. they do not have clarity about whether they should or could invest and what type of energy generation to invest in. the other side of the coin labor has proposed is cutting credits to dividends. the imputation which is pretty yielding lot of the stocks. they are trading on a decent yield. they could deal little bit of -- when it comes to australian

equities. shery: you have a drought that is not helping the ag firms. matt: no, indeed. we saw them come out and cut their weak forecast for the east coast of australia and that is hitting the guys liking and gham's group. s are over in chicago as well. it hits rio tinto's iron ore profits because they have to drive trucks a lot further because people are getting exhausted. we are also seeing a little bit of a pickup in labor costs in western australia as well. shery: this whole segment has been a downer. give us some good news that the market can look forward to in australia. are shaped on a

decent yield. if there is a pickup, it will be people piling back into the banks. there is a lot of risks built into the share prices with the royal commission. we are not sure what the regulations are coming out of back, so if there is any positive news, it could be one to look for more towards the banks. shery: thank you for trying. matthew progress. [laughter] -- matthew burgess. [laughter] shery: let's get adam haigh. hit from allting directions. we are talking about the em selloff. the tech selloff, potential slowdown in china as well. adam: and that is kind of the now, all kindfx of coming together at the same time for the hong kong equities market, and it is a really very fragile place to be at the moment from a sentiment point of view, and part of that is kind of getting caught up with em

turmoil. this is a great chart in your gtv library, and it shows how much money is being gamed out of and if the key em etf's, think what is happening in hong kong is in part due to that. we saw this a few years ago. when there is a rebalancing of the msci emerging markets index, that tends to coincide with kind of outsized moves in volatility related to the underlying equities in hong kong in this and ends getting hit particularly hard. on the back of that, there is the underlying fundamentals of the chinese economy and how that slowdown is being priced into markets globally amidst emerging-market turmoil where people are reluctant to come in and take any huge positions in em space, so hong kong, in a sense, is a developed market, but they are performing like -- haidi: what the fed does is obviously key. is there hope we could see a more dovish case of hikes given

what you have seen in the bond market? adam: i think people have been prepared to give the benefit of the doubt that maybe the fed would be able to hike in september and perhaps hold back in december. of course, there has been a series of strong economic data that have showed the fed is unlikely to do that. the wage report on friday is the latest of those. yields have been taking up on bonds -- ticking up on bonds in the u.s. so people really moving for the first time this year to a sense that the markets are really pricing into more hikes now kind of an line what we were -- with what the fed was expecting at the start of the year for four hikes in total. the market slowly getting towards that. those chances are becoming a thing slimmer and slimmer as each day goes by. adam haigh.

check out the gtv library, where all our charts live at gtv on the bloomberg terminal, of course. coming up on "daybreak australia deal?l or no the latest on the china girl -- trilateral nafta agreement. this is bloomberg. ♪

haidi: i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. you are watching "daybreak australia." canada says the latest nafta talks were productive and there is good will on both sides. prime minister justin trudeau and president trump both waited on the status of -- weighed in on the status of negotiations. >> we know there is a good deal to be had that is good for canada, the united states, and mexico. trade is not a zero-sum game. it is very possible and even outon to get win-win-wins

of international trade deals. pres. trump: canada, they want to make a deal very much. me, if we make that, that's good. if we don't make it, that is ok, too. we will see if we can get them into the deal we have with mexico. i think the deal with canada is coming along well. we have been dealing in good faith. , bill.joining us now it is great to have you on the show. we are seeing the u.s.-mexico bilateral deal in place. we thought we saw that and the auto sector was dealt with and everything else what sort of fall into place. why are negotiations with canada -- why are they going as smoothly as expected? aren't negotiations with canada going as smoothly as expected? bill: they did not addressed some bilateral issues.

gary the -- dairy being the big one. there are lots of intellectual property issues. there are dispute resolution issues that canada cares a lot mexico does.an there are outstanding issues that have to be dollars. shery: we heard president trump saying it is ok for the united states if we do not get a trilateral deal. can the trump administration actually proceed without a trilateral deal? bill: there is a big debate about that right now. some people say no, some people say yes. it does not have to be decided until he actually sends them something, so the decision is some time away. the only people who get to decide on the congress. you cannot go to court -- it is not up to the president. the congress decides if it fits the procedures are not -- or not. if canada comes in, i think there is no question.

hopefully, that will happen by the end of this month, and that particular debate will go away. that there isea this tentative deal between the u,s. and you -- maybe -- and e this can be extrapolated to a more conciliatory attitude towards trade and extend that to the u.s. and china trade situation as well. is that just wishful thinking? bill: pretty much. [laughter] bill: i think we are not there yet for any of these deals. the president keeps threatening tariffs, specifically on automobiles, which will send all of those down the drain. and i think -- keep in mind -- both for the administration but also in american public opinion, there are very different views about china than about europe and canada and mexico. there is a widespread view that the administration's complaints about china are correct and they are important and problems for

us. there is a lot of disagreement about what he wants to do. the tariffs are not popular. there is a view that what he is trying to do is the right thing. mexico, canada, and europe -- there is much less sympathy for president trump and much more of an interest in getting the dishes behind us and moving on. haidi: you know, i kind of take from what you say that this top stance on trade is not playing out in a straightforward way to president trump base as you would imagine it would have. bill: it is quite unpopular amongst farmers who are taking a big hit. anyway.re down they have been on a downward trajectory for some years. tariffs in retaliation have made everything a lot worse. hitting innt said there. i will win. it will all be fine. the farmers are going along with that but they are beginning to

wait?ow long do i have to if i go bankrupt before anything happened, it does not matter if you win because i will be broke. so those questions are starting to be asked. prevailing view is that probably it will not turn a corner, if you will, before the elections. early nextbably peak year, but people are starting to get worried. shery: china is going to the wto, canada is trying to reform the wto. given the stance of the trump administration, is there hope for anything to come out -- anything substantial to come out of the wto? bill: yes, i think so. what the united states has done is flagged some issues about the way the dispute settlement process works. there are genuine issues, rules, and the appellate body is ignoring some of the rules. that can be fixed. the member states can get together and decide what the

appellate body ought to do. what canada is trying to do is build a consensus to do that to address some of our concerns. i think that is possible. they had to get the chinese to agree. they had to get the indians to agree. but if they do, i think that will solve some problems. and i think, you know, if you talk to our ambassador, our u.s. aboutrepresentative light has her, he appreciates the value of the wto and would like to make it successful. shery: one of the key issues being discussed is the use of tariffs on the grounds of national security. i really enjoyed your podcast and i remember you did not agree congress tosh in send that authority to the defense department. explain to us why. bill: well, because if you do that, you are going to get a lot more affirmative findings out of the defense department. the proposal to move it was a

reaction to the fact that there have been a couple positive studies out of the commerce apartment. i used to run the bureau that did these studies, and i think you get -- you have a bunch of experts who know industry, who know the trading system. i think you get better opinions out of them. if you go to the defense department, you will get a lot more affirmative findings, which is not what the authors of these bills would like to have happen. shery: president trump's entire strategy -- his game book is to tear up the grim book -- game from multilateral trade negotiations and agreements. is there a chance we come out of this on the other end with them for global positives trade? bill: big question. i hope so. there are possibilities. it depends on whether the president is able to temper some

of his more extreme impulses, and i think he has a lot of advisers telling him to be cautious, but he is not always cautious. we may end up potentially with a stronger wto. one of the things that happened here that is interesting is he has a lot more people talking about trade. he has a lot more people thinking about trade and understanding how it works. in the long term, that is probably a good thing. they do not agree with him. it's not necessarily good for him. the fact that more people are educating themselves about how the trading system works and the u.s. -- of thef world consumer are outside of the united states, that is all good long-term. we have to get through this presidency before we see some benefits. shery: i think i can speak for everyone at bloomberg. we spend a lot of our days

thinking and talking about trade. bill, pleasure to have you on. bill -- toomberg subscribers can go dayb on their terminals and the impact ofat hurricane florence on oil prices. you can also get it on the mobile in the bloomberg anywhere app. you can customize your settings so you just get the news on industries and assets you care about. this is bloomberg. ♪

haidi: apple will release a blitz of new products this week, ending a year of minor updates and servicing up for a potentially strong holiday quarter. mark gurman filed this report on what to expect from the next iphone upgrade. mark: there is no disputing the hype that surrounds an apple

product launch. last year, anticipation reached fever pitch as tim cook stepped onto the stage to until the iphone x -- unveil the iphone x. >> it is the biggest leap forward since the original iphone. mark: it was touted as the most significant upgrade. >> incredible new design, face id, to depth camera system, and more powerful technologies than we have ever put in an iphone before. mark: how will this year's event compete? the iphone x is here to stay, mostly. we expect three new models that will look and act like the iphone from last year. the first will be the iphone x -- it will have an upgraded camera. a larger version is expected to come with the name iphone x s max. it will have a cheaper lcd screen. while the phones are significant to apple's bottom line, do not

expect to see any major breakthrough features. those will come next year. apple hopes that these new phones will appeal to a greater array of consumers and in turn boost sales of accessories and services like streaming music and video and get the company a step closer to becoming the first publicly traded $2 trillion company. i am so excited for these new iphones because i work completely on my phone and then rainsstranger eyes -- st your eyes.i am so looking forward to the larger screens. they are revamping the ipad. they are bringing in a new laptop. we cannot forget that the iphones generate two thirds of their revenue. >> looks like you are the target they arecause underestimating the demand for these upcoming bigger screens, lcd screens, so we have a

capital company raising its price target to $256. when you take a look at the graphic dashboard to see the consensus rating for apple shares ahead of the grand unveiling, just one loan sell call. call.e sell according to ubs, apple is setting itself apart with one of the world's only recurring hardware revenue streams. analysts are forecasting -- the key driver is the anticipated update in average selling prices. above $700asp was over the past three quarters and it will likely remain the case going forward, haidi. haidi: we will be watching the apple supplies keenly in the taiwanese and korean session. we will see you in just a bit. that is almost it for "daybreak australia" this morning. in new zealand, we are seeing a in thebit of a bounce

early session. let's try to get that up. of course, you can see sydney futures looking pretty bearish as we set up for potentially the longest losing streak in asia in 16 years. ♪

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labor day mattress sale and save. for a limited time get 150 dollars off and free shipping too. sale prices are available right now. go to buyleesa.com today. you need this bed. haidi: a very good morning. i am haidi stroud-watts in sydney. just an hour over from the open. shery: good evening from new york. i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: our top stories this wednesday, asia-pacific stocks look set for a muted stock. hong kong and philippine markets are the world's worst over the last five days. oil jump in the most since june as hurricane florence