>> very good morning, asia's major markets are just one hour away from the open. >> good evening from bloomberg's global headquarters in new york, i'm shery ahn. >> sophie kamaruddin in hong kong, welcome to "daybreak asia. upseta-pacific stocks ecowas street gangs. live reports that the u.s. wants china to reopen these trade talks. trump's president

tariffs starting to hurt at home. apple reviews strategies for devices that are new, faster, and aimed to attract a wider audience. >> a quick check of how the session ended in new york. we see a bit of a mixed picture. the s&p 500 is black, the nasdaq fell 0.02. potential trade talks with china and the u.s.. still, that was offset by slumping tech stocks, also chipmakers. we had goldman sachs downgrading some chipmakers. that's weighing on the s&p 500. fellso see apple, which 1.2%, the biggest decline on a product launch date since 2015. this is what the markets look like. sophie. sophie: with the declines likely to continue and optimism looking fleeting, asian stocks could look to extend the slump we saw

after a 10 day decline. japanese future are looking at a change. seoul, the cosby may be ratings, despite the government saying it will review economic policies. there may be another round of measures to cool the housing market that may be introduced. in australia, futures point lower. 18,000 jobs expected to be added for the month of august. over in wellington, the ndx 50 is extending declines we saw on wednesday. we saw data signaling a pickup through the month of august while prices for food were half a percent on a monthly basis. let's gave the first word

news with jenna dagenhart in new york. >> hurricane florence keeps turning toward the eastern seaboard. it steered up to 3 million homes and businesses let's gave the fd left without power when it crosses the coast. duke energy says 75% of its customers could be cut off. it could take weeks to restore services. as many as 4000 companies could be hit. some are shutting down temporarily, including boeing, dupont, and cvs pharmacy. jp morgan ceo jamie dimon picked a fight with president trump and immediately regretted it. he said he thought he could beat the president in an election, adding he is equally tough, but smarter. hours later, the bank issued a statement saying he shouldn't have said that, and he wouldn't make a good politician. the white house didn't offer a comment. bridgewater associates founder says the u.s. economy is about two years from a downturn which will see the dollar plunge as the government prints money to fund a deficit. he said the impact of president trump's tax cuts will fade in about 18 months, with rising

interest rates, mounting pension, and health care costs hitting the budget then. , when you hitify zero interest rates, you have a different type of debt crisis. you are more likely to have a depression. is similarwe are in to 1945-940. jenna: the indian rupee gain the mostjenna: in 18 months after officials announced court measures after this weekend's planned review of the economy by the prime minister. inflation eased below 4% for the first time since december, offering the r.b.i. a brief rest. policymakers have already spent millions of dollars to bolster the rupee with little success. the edb is set to lower forecasts for eurozone growth as trade tensions reduce external

demand. officials tell us 2018 output predictions are being cut slightly, with the u.k. and turkey among nations moving a drag. the banks view of the u.s. remains positive. the gloomier outlook comes as the ecb compared -- prepares to wind back. we are told it is probably not plan.ough to derail the 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. i'm jenna dagenhart, this is bloomberg. down --pple is doubling tripling down on its iphone saturation strategy, betting the buyers will be lord by larger screens and a wider range of models. let's go to mark gurman, who attended the product launch. all of the buzz is around the cheapest iphone. is it likely it will get the most attention? mark: i think so.

the iphone x r is an upgrade year from the iphone 8 and eight plus. it is significant because it is at that pricethe iphone point. in terms of new functionality for apple, nothing we saw was breakthrough. we didn't get any new bells and whistles. it was more of the same, besides the expansion of pricing, colors, and screen sizes. shery: what about the virtual cards? apple said they will not release that in china, but in the u.s. can i get rid of the little pins trying to get the physical things out of the phones? mark: outside of china, the way that e sim functionality will work is that it will be a number.y phone you will still need your standard syndergaard, but for a secondary plan, that's what the esim is for. china will not have it, you will have two together.

sophie: despite all of these products, why didn't the stock react better? mark: the stock didn't react better because i don't think investors saw anything newsworthy or incredible. if you look at the iphone x lunch, there was a lot of new bells and whistles. we saw the bigger screens, you saw the new inner space. this was just a continuation, a the first keynote from 2017. haidi: was the watch a bit of a surprise? mark: the watch functionality is not particularly surprising, but quite impressive. it is just apple bragging about how far ahead they are in the smart watch industry. apple software and hardware, health functionality, is so far ahead of fitbit and samsung, it is almost comical.

haidi: we have been talking about this threat of apple cannibalizing their own product line of, because everyone will make a beeline to the cheaper phone. they have done something smart, in terms of pricing timing strategy. the cheaper phone will be appealing to a lot of people, people who do not have iphone x alreadyan. people who do i don't see a reason for them to get the other model, or if you are really into gold. a solid upgrade from anyone coming from 8 or older. thank you so much for that. still ahead, the u.s. may be trying to de-escalate trade friction with china. we talk with a former u.s. trade representative. shery: it's a big way for central banks. we take a look at the meetings from the acb, the eod.

also turkey and russia, a lot of information. this is bloomberg. ♪

shery: this is "daybreak asia," and shery ahn in new york. haidi: i'm haidi starbuckhaidi: in sydney. the federal reserve starting to disrupt pricing and business investment in the u.s., even as it marches to one rate hike. other central bank meetings ahead this week. let's start with the fed. this may be the clearest indication that there is problem is going into the impasse of the trade war. >> that is true. anytime a federal reserve official is asked, including jay , we hear complaints from the district, but it is not

feeding into the data. the next meeting is september 26, each of the district compiles information from businesses, academics, and more into this book. we see tariffs starting to bite. they said tariffs are " interbreeding to rising input costs, mainly in manufacturing, also a number of businesses sought scaling back." the federal reserve district runs along the southeast coast of the united states, a lot of manufacturing. let's look at what the philly fed has to say, specifically in their chapter of this report. nearly two thirds of the firm's that offer general comments noted price hikes and supply disruptions had already occurred or were anticipated because of tariffs. they say some typical responses were that tariffs "have put us on certainness products, and are a cloud on every facet of our business planning."

clearly this is having an impact. will it show up in the data? we shall see. the beige book said tight labor d thets, solid growth, an fed governor is on board with gradual rate hikes. that seems to be the message from the book. haidi: the world is than most important central-bank meeting, it is actually turkey. russia we are going to be watching, as well. kathleen: turkey is one of the poster children for beating up emerging-market currencies. they had this emerging-market selloff. they are the one in focus. raising their key read to curb inflation. this blue line showing the key rate which was 18%. from 9.25 to

atn a smaller rate hike 19.25 percent. we are looking for them to move to cap this inflation rate that is up to nearly 18%. our bloomberg economics if he -- our bloomberg's economics team sees a move of 22.25%. the consensus is for 21%. haidi: the ecb and boe may not move drastically, it will be pretty tame. they could be presenting some strong signals. kathleen: for the european central bank, they do not announce any shifts. be for theme will to signal that monetary policy is still moving in the direction of reducing bond purchases, raising interest rate in september next year, even at a time when she deeply has slowed, inflation has slowed. bloomberg economics has an interesting take on the bank of england. we have this stronger pound on

theit optimism, the summit, eu negotiator thinking they can get the deal in. spur aroving data could hawkish surprise in the bank of england's shares. maybe we will have our viewers ready for something they are not looking for just yet. shery: kathleen hays, thank you so much for that. let's bring in whittier trust ci sandy bobbitt for his views. kathleen was going through some of the central bank's decisions we have upcoming, which will you be watching? >> the likely fed action for the next two meetings suggests there will be a hike in the u.s. the fed is committed to a gradual trajectory of rate hikes. it is worth noting that the risk in the u.s. is not so much that the fed moves too quickly or aggressively, rather it is too

slow and ends of behind the eight ball. let's look at what inflation is doing, it established or inflation is between 2.5% and 2%. the fed funds rate is at about 195, it has been 2%. when you do the arithmetic, the real fed funds rate is negative. that is stimulative. for all those that say the fed is too aggressive, they will choke off the recovery, forget normalizing, they are not even close to it. i think they are doing the right thing. in this g tvbring library chart. pricing to more rate hikes. you can see this greenline right here would actually show that this would be the kind of fed

funds, plus to rate hikes, which would make it a total of four, the biggest year in rate increases since 2006. inflation is not accelerating -- inflation is accelerating, but today we had the apple virtual sim card released. that could even spark a phone p rice war because it will be easier to change networks. could we see such inflationary pressure kick in and make it more difficult? bullishwe are actually on inflation. we think it will be contained. iu point to a force which think will not disappear anytime soon, technology, disruption, a new economy. deregulation will help.

growth in the economy, the certainty of the economic cycle, these are always in which we think inflation and interest rates will remain relatively well-behaved. at this point, the appropriate fed policy to continue tightening. the fear is should people reach their own target of the neutral -- should they reach the target of the neutral fed funds rate, which stands above 3%, if a 10 year bond has nothing between now and such time as the fed gets to that level? we will have an inverted yield curve. we don't think that will happen. there are a couple of reasons why we believe so. that is the take on the intersection between what's happening with inflation, and what monetary policy, at least in the u.s., is. shery: every person we have spoken to says the next potential black funnel -- black swan, the source for a crisis, will come from china and not the u.s..

do you agree? sandip: china is right in the crosshairs of this trade work issue. the chinese economy is gradually changing the composition of itself. from being driven by investment infrastructured making a big part of the economy, they are gradually moving to the consumer being the dominant force. they become more and more closed end. based on 10% growth in china -- the days of 10% gdp growth in china are long gone. there should be a little bit of deceleration. debt levels in china and the dysfunctionality of their financial sector is something to keep in mind. the trade war issues, i want to offer this perspective. we are increasingly of the

opinion that even the worst case scenario between the u.s. and china, people may be overestimating the damage. expectt see -- we don't the worst case to happen, we don't think the damage will be that devastating. it is true that both the u.s. and china together make up more than 20% of world exports. curiously, the bilateral trade between them is less than 5%. let's cut through more detail. as you look at the value of all chinese imports into the u.s., or u.s. exports into china, that number is less than 5% of the gdp of each country. which willral trade, declined by 10 or 20%, the impact on gdp of each of those countries will be well less than half a percent. shery: it is not just about the

bilateral relationships. what about the implications for the entire supply chain, particularly in asia? sandip: let's try to look ahead and see how that plays out. i will offer a perspective -- should the global trade war unfold in its entirety to the fullest impact? maybe the volume of aggregate global trade, or trade flows, may not go down a whole lot. what might happen is we will see a different composition of these trade flows. let me give you a real life example. much like we substitute away from foods whose price has gone up, so will the trade from china to the u.s. get redirected different countries and economies. this is nothing to sneeze at, i am just offering a point of view

that these fears may be overblown. we have held a view that all of this talk on trade and ramy: has been --on trade and tariffs has been a negotiating tactic. some of that has happened, we haven't lamented tariffs --, but we are having good conversations. shery: this has been a different conversation to most of the other people we have seen who are a lot more bearish. chief investment officer for what your trust, always appreciate it. plenty to come, this is bloomberg.

♪ asia,"this is "daybreak i'm haidi stroud-watts. shery: i'm shery chaim in new york. the u.s. is asking china to reopen trade talks to avoid escalating the trade war.

i asked former u.s. trade representative for his thoughts and ongoing nafta negotiations. thosehave to address issues. the administration is really focused on trying to address them. with regard to nafta, they have reached a temporary agreement with mexico. they are waiting to see what they can bring canada into. there is a process to go through to get that approved by congress. there are still in number of steps. with china, while there has been back and forth with tariffs, it is up to the administration to have a clear vision of how to move the conversation forward. there has been a very good coordination with japan and the eu.

china is probably confused as to what the u.s. wants, and what the process is to get there. haidi: we hear the u.s. is seeking negotiations. they have had a round of talks with china, we have seen previous talks. what will it take to get a breakthrough? michael: it depends on what they see is their instinct. do they want to see a reduction in the trade deficit by agreeing china will purchase more soybeans, airplanes, or tractors? or do they want china to change the industrial policy that is embodied in china 2025, and major initiatives president xi rolled out around the party congress in the last couple of years. that is a much more difficult conversation to have, perhaps the more important one. it goes to the structural nature of the relationship. shery: we hear treasury secretary mnuchin is doing outreach. is he the right person to do this? michael: every administration organizes these talks differently. often times, the treasury role,ary has the lead with regard to china, because there are macro issues, currency

issues. that was true in the obama and bush administrations. i expect the u.s. trade representative to play an active role on the trade specific issues. shery: lighthizer has been busy with the nafta deal. is a bilateral trade deal only with mexico feasible at this point? michael: i think there is a lot of concern about going down the road in congress and major constituencies around the country. the agricultural community, manufacturing community. we really are an integrated north american production platform. it is very hard to disaggregate some of those relationships. also, from a legal perspective, it is about renegotiating nafta. if they come back with half an agreement, congress will have to determine whether the procedures can apply. haidi: that was shery speaking with a former u.s. trade representative.

coming up next, trade tensions affecting global supply chains all around the world. are companies prepare for the disruption? which asian industry holds the most promise for the future.

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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. ♪ shery: it is 9:30 a.m. in sydney, we are starting off 30 minutes away from asia's first major market open. a beautiful day, but looking like another downside day when it comes to the equity session. we do have jobs numbers and the in employment rate held steady. machinery orders and factory inflation numbers due out of japan over the next hour, as well. i'm haidi starbuck in sydney. shery: i'm not quite sure how much guidance you can get from the u.s. session. it is 7:30 p.m. in new york, the markets closed mixed. went up, the nasdaq

fell. i'm shery on a new york. haidi: you're watching "daybreak asia, let's get you the first word news with jenna dagenhart. jenna: hurricane florence keeps turning towards the eastern seaboard. 300 million homes and businesses will be without power as it crosses the coast. 75% of duke customers could be cut off. it could take weeks to restore services. 4000 companies could be hit. some are shutting down temporarily, including boeing, dupont, and cvs pharmacy's. philippine authorities have ordered evacuation measures in northern luzon as a typhoon continues to strengthen. it is expected to make landfall early saturday. 15 provinces have been put on alert. the typhoon warning center says there are maximum sustained winds of 290 kilometers per hour. it is expected to hit taiwan,

hong kong, and southern china. the u.s. government is proposing new trade talks with china in an apparent attempt to avoid further escalation in the trade war. a senior team led by stephen mnuchin has contacted its counterpart in china. any rallied. surprised at bose product launch, three new iphone x models included --, including one that is bigger, shipping in late october. more health features, including an ekg function to measure heart rate. it is the first of its kind. the market was underwhelmed. shares closed more than 1% lower. >> the ios is not just the

world's most advanced mobile operating system, it is the most personal. we are about to hit a major milestone. our 2 about to ship billionth ios device. , 24 hours al news day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jenna dagenhart, this is bloomberg. shery: we are counting down to some of the major market opens in the pacific. for more, here is sophie kamaruddin. we saw the selloff in asia, stock valuations looking cheaper. that's keeping nikko bullish. they are not really buying, white -- why? sophie: they are bullish, but they say hold on bargain-hunting after the u.s. midterm election, citing trade tensions given the macro backdrop, rather than the fundamentals of the chinese economy. they also see trump is adding to the pressure by pushing japan to sign a bilateral trade deal.

the selling in japanese stocks is not surprising, but that is looking unjustified as they are looking oversold and cheap. as you can see on this chart, it has been a rough week. 20% drops in estimated pe for japanese stocks. the line in white, rpc falling out of it -- elevations. this is happening even as analysts raised earning estimates substantially since the first week of this year. there could be more upgrades ahead, should a japanese companies raise earnings after the midterm. shery: with that selloff in asia, we also see the fortunes of asia's billionaires taking a hit. tell us about that. sophie: shed a tear for these billionaires as we see the asia-pacific index falling by $200 billion in market values. the fortunes of the region's 120 richest people have come down by

a whopping $99 billion. more than two thirds of it coming from china and hong kong. outside of asia, 2018 has been relatively prosperous for the rest of the world. the wealthiest americans added $132 billion to their fortune. we seeoutside of asia the fortunes of the wealthy people rise. we have seen with jeff bezos leading the way, he has added $65 billion. oft would be double the size comey was entire net worth. haidi: it was clearly a behemoth. stock price has been absolutely pummeled by the tech selloff in china. we also see the likes of dolly and one's a boss report he -- his fortune has diminished. could be for rich

asians, it is still pretty rich asians. we are still seeing great numbers when it comes to crazy rich asians, the movie. maybe fiction is currently nicer than fact when it comes to the market selloff in asia. let's go to singapore, where all of the crazy rich asians are. the logan institutes women's leaders summit is underway. trade tensions no doubt the key area of discussion. with the the summit host himself. i am with the man of the outcome of milton institute chairman michael milken. it will actually be preparing for asia's future.

let's get straight to it. how your closing credits, do you prepare for asia's future amidst all this uncertainty and escalating trade tensions? michael: i have repaired my whole life. i'm trying to understand the major trends. not necessarily the day today movements. my very first speech on wall street 50 years ago was the best investors social science understanding this issue. in asia, the rise of the middle class is one of the most important things occurring in the world. more than half the people in the world and middle-class will be living in asia. what are their needs, wants, how to the access the financial system? number two, the education of girls and women. today, there are 90% of all girls in primary school in the world. a huge increase has come out of

asia, versus 90% for boys. the growth of the asian economy, including women, three aging. vietnam, korea, china, aging faster than any country has aged in the history of the world. how are their economies and societies dealing with this? health care, environment, change in lifestyle, diet, the fast food restaurants from the u.s. that have come to asia have brought with them many other side effects. increase cancer rates, obesity, diabetes. as we look at asia and the future long-term, we are focused on all of these issues. that's what i am focused on. >> are you concerned about what we see between the u.s. and china, and a potential dent to global growth? michael: the trade differences will eventually be resolved in some way.

you have much more responsibility as a reporter on an hourly basis on what happened, we are trying to figure out the major trends and where they are headed. and the importance of financial distance. it wasn't that long ago that 0% of population had access to a mobile phone. almost 70% of everyone on the planet has access. it is even higher in asia. of semtech, the fact that your bank will be the mobile device. how that plays in society so we can increase economic opportunities for everyone. >> you spoke about some of the problems that come with a rising middle class, particularly on health. his medical innovation where you are seeing a lot of movement towards capital? michael: we have spent 40 years working on this area.

the substantial reduction in death rates on cancer are with us. the answer to that question is yes. it is not that they have to occur. .he food chain is changing how we prepare food, how we grow food, where it is grown. the ability to grow a hamburger in a petri dish is with us in a reality today. without tests aside, hormones, a farmer products, 1% of waters, 1% of land. we see asia as the focal point. five years ago at this conference, when we go throughout asia about how they felt about the environment, except in hong kong and singapore, it was not an issue. today, every country in asia is an issue. that is why we are focused on financial capital to resolve the issues. >> also focusing on equality.

yesterday, you had women leaders. what and roads are you seeing? michael: asia is the leader in this area. the milken institute puts on 275 events around the world. luckily, i do not go to all of them. has avent in singapore highest percentage of women. of any event we have put on in the world. yesterday, 300 women leaders. wereose 300, almost 90% inclining. world, peoplethe perceive women are not playing an important role. here, they are. we have had the results of the worldwide competition yesterday put on by world farm. competed.e at the end of the day, there were 11 winners.

seven were women, four of them were men. i don't think we fully realize the active role women are playing in ai and technology today. it is one of the things that is a strength of asia. our philanthropy forms, what you have around is the second or der is oftention rea the daughter, where it used to always be that son. it is refreshing and has led to economic growth in asia. we have a lot to learn from asia and singapore. institute doing to help develop capital markets in developing asia? 1000el: if we can create world experts that agree to work for the government in sub-saharan africa and south asia, you need a counterparty that is sophisticated, that understands financial markets.

along with the ifc, a division of the world bank, we started this program where we bring in scholars who have completed college that can go back and work for the government and spend one year at intern programs and being educated, in this case, george washington university. yesterday in the morning, we met with singapore about the possibility of bringing people that are working in finance and ,ub-saharan africa, south asia to a university in singapore. they would go back and be the counterparty for the government to create. we are very focused that they become world experts and can hold their own in any financial conversations. >> thank you so much, best of luck. that was milken institute chairman michael milken with me.

haidi: coming up, brent crude tops $80 for the first time since may as u.s. and patrice go to -- u.s. infantry's goateed lows. this is bloomberg. shery: later on bloomberg tv in the u.s., we will be live at the global climate action summit talking to a great lineup of guests, including uber's ceo. this is bloomberg. ♪

haidi: this is "daybreak asia." shery: oil continues to rise, with brent crude touching $80 since may. a number of producers playing into the price projection, including the u.s., venezuela, and russia. opec has a new report outlining its concerns. remy innocence you joining us with the latest. how much has to do with

geopolitics? ramy: geopolitics is what is driving the fears. the fear that they will not have supply in the pipelines soon enough. i want to show you one reason. you talked about iran in the tease, this is all about iran's total oil exports. this is in blue. itr the past four months, has been falling consecutively. at the same time, opec has been trying to push more oil out to try to balance things out. it still looks like it will not be enough. this is just one issue. is looking at u.s. crude supply falling ever since 2017. we can also see what's happening with wti, rising in tandem. iran and u.s. crude supply falling.

with iran, it is the fact that u.s. sanctions may return sometime this november as donald trump has been trying to push that back. in, we opec might step spoke with the russian energy minister. he said they could actually hit record production next year and do that by pushing another 300,000 barrels out. the question is whether they want to or not. >> we have not yet taken any decisions on production growth. we have just spoken about the potential we have and the spare capacity that is there. we will be discussing these decisions and steps we plan to take on the 22nd and 23rd of october when we meet with our colleagues. he is talking about the joint ministerial meeting committee, not the official big

theing, but said it is ministries coming together to talk about the trajectory of oil. of theon the other side coin, there is demand in section. where is opec seen trouble? is it easier to say where they are not getting trouble? ramy: they see trouble in a lot of places. in large part because of what's happening with trade tensions, the u.s. and china, we know that tariffs are looming $200 billion. we are also looking at what's happening in terms of central bank tightening. with the fed, sometime maybe next year. y said, in at what the terms of their monthly report. i mentioned trade tensions, monetary tightening. happeningns, it is with turkey, argentina, venezuela, etc. a lot of countries constituting challenges for the global

economic growth trend. a lot of concern that this might not happen because of all of the shakiness happening out there. in terms of the shakiness, i have one more chart in the gtb live. we can also say it is volatility. taking a look at the oil volatility index, this is at its highest in the past almost two months as we look ahead to the next 10 days. we will hope to get some clarity, in terms of where the oil price and where opec might be going, in terms of productions, production cuts, production supply. haidi: thank you, remy inocencio. a bump when itt comes to the tokyo session. a huge beat when it comes to orders. 11%, almost in at

more than double what was expected. a resounding bounce back from the contraction of 8.8% without in the month of june. orders year on year, that is 13.9%. higher than the 4.3% we expected, and gaining. a typically hugely volatile data series, but one of the strongest indicators of expenditure. we did see some sort of disruption when it comes to the earthquake in opec. -- in al qaeda. we may see more. we saw that on things like output and manufacturing orders. we are also getting producer price inflation. p the eye year on year for august coming up 3.1%. the month on month was actually flat. it was actually a little bit more tepid than expected.

certainly if we take a look at machine orders, that is very much a resounding data. shery: the second-quarter gdp really revised upwards. let's take a look at some of the stories trending across the bloomberg universe. on the terminal, subscribers ar taking in re valuese, warning the u.s. is two from downturn. on twitter, a video highlights three not to be missed court september. in taking the stand are paul manafort, harvey weinstein, and bill cosby. theloomberg.com, featuring treadmill wars. how a billion-dollar stationary the maker wants to disrupt most miserable form of home workout. check of the stories trending on bloomberg online, or on the terminal. this is bloomberg. ♪

shery: this is "daybreak asia,"

i'm shery ahn in new york. sophie: let's get you -- haidi: let's get you a quick check of the bloomberg business flash headlines. a dairy operation has announces loss and will improve importance that performance. throughion u.s. dollars july. million onthan $280 the baby food. to0 million in damages higher milk prices also squeezed margins. at the topse results of the hour. shery: big pack has lost a battle in europe. lawmakers back plans to bolster video to hold them in the bid for compensation for use of content online. google, facebook, and others will now be required to effectively prevent copyrighted material from appearing on their

platform if rights holders declined to grant them license. haidi: as we count down to the market open, let's look at some of the stocks. sophie kamaruddin is here. what is on your radar? sophie: we are watching semiconductor stocks after goldman warned more headwinds as the pricing issues may worsen into 2019. a goldman analyst has cut it to neutral from buy, and has removed samsung from the goldman's conviction list. we are keeping asian stock were stocks on the radar after research taking as much as 20% in our -- after-hours trade. the revenue guidance stayed in line with estimates, despite the second quarter. we are watching fuji soft in tokyo, on lead in seoul, and why tech in sydney. we are keeping an eye on mitsubishi as it became the second japanese firm to be indicted by tokyo prosecutors for falsifying product data.

the stock has lost about 1/5 of its value over the past 10 months. we're also watching for farm machines. taking losses after it announced 85 customers had received equipment that did not meet standards. shery: sophie kamaruddin, thank you so much. we are waiting for the market open in japan, south korea, and they are just ahead. we just got really good numbers when it comes to machinery orders out of japan, which jumped 11%. month to month in july. take a look at nikkei futures. the sole cause be is glad. downydney has 200 futures 3/10 of 1%. we have a mixed picture coming from the u.s. as the dow was two consecutive sessions. the s&p 500 was flat. tech as the nasdaq was down. semiconductors are not really looking good.

they were really hit in the u.s.. we will take you to the market open, live from new york and sydney, this is bloomberg. ♪

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welcome to "bloomberg daybreak: asia." >> asia-pacific stocks look set for a little bit of a gain potentially a recovery from this longer slump in 16 years. investors are eyeing the potential trade talks that apparently are in the offerings.

focus,upplies will be in more pricey, they also target a wider audience. we will review investment strategy after posting a full-year loss. had the longest asian selloff in 16 years. that could be the longest moving streak since 1980. summit kamaruddin is here -- sophie kamaruddin is here with how it is all shipping up. >> after $700 have been wiped out this year for asian stocks look like losses are set to continue but the mood has brightened in tokyo. the nikkei adding 2/10 of a percent asterisk -- after japan's core machine orders were july. riseng the first monthly in months. we are watching for a move in ship stocks.

as korean investors are saying, the government will review economic policies. the asx 200 also looking subdued likely to extend. shares in wellington up by a third of a percent. april 7 at a loss of 100 and $29 million. let's wish not to currencies that we are keeping on the radar. the offshore yuan is holding off to its overnight gains.

closer to the 111 handle against the dollar after the core machine orders came in and investors waiting on the bank decision. the aussie dollar is holding above 71 u.s. census we count down to just data at 11:30 a.m. hope on-time -- hong kong time. brent is coming online just a touch softer off by a 10th of 1%. this after hitting $80 for the first time since my. supplies are seen tightening and opec adding to that caution that could hurt global demand for crude. >> thank you so much. let's get you the first world news within a heck -- dana degen heart. steered -- 75% of its customers to be cut off and it could take weeks to restore services. as many as 4000 companies could be hit. cvs pharmacy and divine others are shutting down temporarily. more storm troubles, authorities have ordered evacuation measures in northern -- as the monsoon continues to intensify.

the thai fund warning center says it could have sustained winds of 290 kilometers per hour -- per hour and is expected to hit taiwan, hong kong, and southern china. is proposingrnment new trade talks china in an apparent attempt to avoid further escalation in the trade war. a senior team led by treasury secretary stephen mnuchin has contact did -- contacted his counterpart in china. the dow tom positive on the news -- the dow turned positive on the news. sophia surprises at apple's annual product launch. they revealed three new iphone x models including one bigger and one that is cheaper. both ship in late october. features --more health features to measure heart --e, the first kind of its approved by the fda. shores close or than 1% lower.

>> it is not just the world's most advanced operating system, it is the most personal. a majorbout to hit milestone. true --bout to show our 2 billion ios device. >> 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. i am jenna dagenhart this is bloomberg. >> that get more on what we are watching on acre -- our markets today. we saw here in the u.s. session with the news that there could be a potential trade negotiation , another round between china and the u.s., that we would get a leg higher. we did a little bit but it was not enough to offset the tech

slump. >> that is right. there is a sense of a little bit u.s.-chinatoward the trade talks. we have seen several rounds of talks occur this year and there has been no settlement. there is no indication that either the u.s. or china are open to any sort of fundamental compromise on their position. so while certainly we saw a reaction especially in the yuan, overnight with the yuan jumping as you said, -- against the dollar, there is not really a this is going to be and they will solve their problems and put it all on track someso, we are seeing positive reaction but it is pretty limited. we havend of the day, sanctions in place.

more is a prospect for coming and there is no real optimism in the market that that is going to change. bump in japan, that bits -- maybe that adds a bit of optimism. they're very well maybe. we also mentioned this morning that the asian index is being -- has been falling for the longest daily stretch and 16 years. -- in 16 years. the argument that one goes down must eventually go back up. we seem to be in a choppy. for markets right now. you have got the trade war's -- wars overhanging the sentiment but at the same time we have got pretty positive economic data. we are not seeing the trade war .eally hammer economic data

even chinese trade numbers have been pretty good. you mentioned japan. trading nationr but the data from japan has been pretty good. there is a sense of alarm about where trade tensions may go. you have goldman sachs coming out this week saying that there could be a bear market in u.s. talks for example. if tariff hikes go across the board on all chinese imports. there are a lot of worries and has hurt sentiment but on the other hand, you have got economic data that by and large looks pretty good. we are in this kind of choppy. and indeed, we see some signs that investors are ready to come back and. -- come back in. but other times when they do not see the basis for a renewed rally across the board, certainly in asia. >> the sentiment is fragile for

sure. think you so much. -- thank you so much. let's head to the dairy sector now. fonterra has its first annual loss since its inception in 2001. we have the ceo mark rivers with us.- marc rivers with is this the worst of it? >> today we have announced our annual results. very disappointed to have to a hundred $96s of million. the major drivers of that are the events that hit us on arbitration settlement as well .s the impairment even aside from the -- from that

this is onpointing the back of a very strong while rice this season. it is good for the farmers and a sense of it cash payout of six dollars and $.79 per kg. the highest in the last 10 years. nevertheless we have to do better from an earnings perspective going forward. -- whathat include can we expect in the future? >> all options are on the table. it starts with taking stock -- complete stock of our business and looking across all the assets we have, the partnerships, the various businesses. looking at what is needed to

improve, and we will take the necessary actions. but all options on the table. in addition to that it is going back to basics. businesse parts of the and thirdly, it is about improving the quality of our forecast. >> when could you be resuming your dividends? issued -- we announced tencent dividends for fy 18 the same dividend the interim. going forward that depends on delivering our earnings. because we have to do this in a disciplined way and maintain a strong balance sheets. that is also part of the measures that we have to take, delivering on earnings but also getting our debt situation back into balance. >> how much of that strategy will depend on china? >> china is an enormously important strategic market for

us. it represents about 25% of our business. overall, we are very pleased with the performance that we have made their. it is a significant part of fonterra but also of the dairy market there. a report about how we have done. we have broken even in the consumer report, two years ahead of time, ahead of plan, but nevertheless of course, it is part of the integrated china strategy. we are disappointed with the progress. we also are continuing to make progress with the china farms. >> does that for just an exit being made or perhaps a larger stake being made? >> all options are on the table. being investment with made but suddenly what is also the case is we have to take an integrated approach to our china strategy. marc, are there?

's over what -- question marks? there is also a question mark over whether you will be sticking to the company structure? and terms of capital structure we do not have any plans to change that. the issue is that we have to address right now a really -- around performance. we have to deliver more earnings and get the right relationship between a level of earnings that we have and the level of debt on the balance sheet. once we have-- performance turned around, good performance really supports a range of capital structures. no capital structure is going to be a solution to unsatisfactory performance. it is about going back to basics doing the forecasting right, and taking a stock of our business to turn things around. year,n it comes to next 25 to 35%, to me how realistic

this is when we are seeing projected costs to remain similar to last year. >> we think that is realistic. forecastrt of the approach we want to take is really to have -- to be realistic about what is possible. improvementhows an for fy 18. certainly we are operating in a volatile business. we understand that. confident on the strategy going forward. it is about capturing more value -- whichilk which made we have made progress on the despite of the earnings performance. we have made progress in terms of selling a greater proportion of our milk and higher value products going from 42% share of our products up to 45%. we need to continue to make progress in that direction. >> think is a much for joining

us. mark rivers chief financial , officer fonterra cooperative group. -- all take at the squeeze look at the squeeze of asian supplies and apple's new iphones. >> bruce carnegie-brown an exclusive interview with about growth opportunities and how much china plays into their strategy. this is bloomberg. ♪

asia." is one of the best-known names in the insurance world. companythe 300-year-old lost money for the first time in six years and like every other u.k. business, it is anticipating a mark obligated environment after brexit. joining us now for an exclusive interview is chairman bruce carnegie-brown

are you seeing the growth -- the best growth opportunities? one of the reasons i am in shanghai today is because we see a lot of growth opportunity in china. we continue to see growth opportunities around the world. most particularly because the risks that our customers are facing are changing over time. with that change comes opportunity. >> when it comes to china you of course are offering direct insurance since 2010 but premium income in the first seven months of this year were not a significant. how important is the china strategy for you? >> we have been trading in the rest of the world for 300 years but only 11 years in china. temper our ambition with some patience as this economy builds and as a opportunities built. part of the reason for being here is to build relationships with chinese insurance companies and to help their business

develop. international desk -- as china itself enters -- internationalize s. the trade war has really in a way put a spotlight on the difficulties of foreign affairs with what they had to deal with doing business with china. what would be the biggest challenges and barriers to your growth in china that you see at this point? certainly protectionism is a huge risk for the insurance industry. particularly the wholesale and insurance industry. because the whole purpose of what we do is to bring capital to the point of need when it is us are strikes. anything that prevents is that capital will prevent the free movement of the capital. it works against the economics of the indicia but also fundamentally works against the

purpose of insurance which is of course to go people back on their feet when disaster strikes. protectionism of his -- is a very big risk for the industry. >> terms of opportunity that is specific to china, but whatever comes in as part of china's worldview, the belt and road, do you see opportunities or have you found opportunities in the one built one road program -- one belt on road program? yes. we have actually been involved in three projects in the belt and road so far -- belt and road -- belton road so far. we estimate more than $30 billion of premiums will be paid in the next 12 years to support the risks created by the projects. >> last year you were introducing cybersecurity insurance in china.

would you be able to give us an update on the? -- on that? >> yes. it is what i referred to earlier, the risks our customers are facing are changing and we need to adapt our products to make sure we have relevant solutions. cyber risk is the fastest-growing product that we write and lloyd's. we write 30% of the global cyber insurance market and it is unsurprising as china develops and involves that the technology and sharing economy in china grows, that their server -- cyber would also grow. we're certainly introducing the product to chinese insurance companies and businesses to help manage those risks. atbruce, thank you chairman lloyd's of carnegie brown stays with us. this is bloomberg. ♪

>> with the credibility problem.

it is the most important one. if the funding disappears that could happen to other institutions and then you will realize how interconnected we were in the financial system. >> i think we have all learned that things are much more interconnected and competent -- abdicated than we can imagine -- complicated than we can imagine. we have to really monitor what is going on in financial markets much more than perhaps some thought earlier. >> one major legacy of the crisis is that people now understand the importance of the financial system in macro regulation. you cannot just regulate individual institutions and have stable prices and think everything will be ok. >> clearly banks have investors that think -- that did not understand. banks have two little equity. regulators have retreated too much from regulation at the end or at the peak of a very heavy phase of deregulation. supervisor have -- supervisors have under the -- underestimated

components of risk in particular, elements of interconnectedness. it is correct that we did not understand the interconnectedness. there is a much better understanding today, banks are much safer and sounder but, to say we understand all the complexity of the interconnectedness would probably be a bit optimistic. >> the economy would of ground to a halt -- what have ground to a halt. we would have taken action as we did take in late 2008. to try to offset the consequences of that. >> but we would not have prevented altogether. yearshave been marking 10 since lehman brother's bankruptcy that helped -- brucee and trigger carnegie brown is still with us.

what are the lessons learned from the -- from your perspective? >> the biggest lesson to learn>> from the financial crisis is of better management. this feeds into what we do at lloyd's. providing protection to our customers against risks they do not want to assume. it is something all of us in business they too have spent a whole lot more time on since the crash. almost certainly a lot more on it than we did before hand. >heidi: where do you foresee the biggest risk coming from now? we have talked already this morning about cyber risk. i think that is a very big risk for companies. seeing the manifestation in data breaches around the world. we have seen hacking activity bring down whole systems and

indeed whole industries for periods of time. i think that is an increasing risk facing the world and something we need to get our arms around company by company but also state-by-state. >heidi: what about economic risks? some say it could emanate from china. economic risk as well at this point, it clearly is never a straight line in terms of the way growth works. people have to be both resilient and flexible in the way that they work. i see china's economic boom continued for some time to come. it will hit headwinds periodically as some at -- as companies do. but i do not see particular concerns with respect to china at this point. heidi: thank you so much bruce , carnegie-brown. coming up next, the latest tensions in washington, seeking a new round of trade talks with

beijing just days after trump threatened to tax nearly all chinese goods. this is bloomberg. ♪

haidi: it is 8:30 a.m. in hong kong. it is a make or break day when it comes to trading in asian equities. we are already in the longest losing streak and 16 years. we add that to 11 date today that will be the longest slump essentially since we have been keeping record. shery: you are watching "bloomberg daybreak: asia." let's not that the first world news with jenna dagenhart in new york. ceo has picked a fight with president trump and immediately regretted it. speaking at a philanthropy event he that he could beat the

president in an election adding he is equally tough but smarter. just hours later the bank issued a statement he should not have said that and he would not make a make -- make a good politician. the white house did not,. bruce waters says the u.s. economy has developed two years from a downturn that will see the dollar plunge as the government prints money to fund a swelling deficit. he told bloomberg the impact of president trump's tax cuts will be start -- will start to be seen in 18 months. health care costs will hit the budget. >> i do not think we are in the midst of another bubble. let me clarify. when you hit zero interest rates, you have a different type of debt crisis. you have more likely a depression. ishink the period we are in similar to 1935, 1940. ready to loweris forecast for eurozone growth as mobile tensions reduce external

demand. officials tell us 20 output predictions are being cut slightly with the u.k. and turkey among nations probing a drag. the bank view of the u.s. remains positive. the outlook comes as the ecb prepares to wind back stimulus although we are told it is bad enough to do -- it is not doing that enough to derail the plan. richest people are losing money as well the americans make more. the bloomberg billionaires index shows the continent's will be as people effectively lost 100 and $2 billion this year -- $102 billion this year. the richest americans range $130 billion. with asian stocks in the kleins about $19rs tencent's billion worse off when you combine their losses. 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.

i am jenna dagenhart. this is bloomberg.. heidi? haidi: is get a look at the asian markets. if they are shaping up worshiping down. reporter: it is a checkered start to the session. we have gains in tokyo that could help the regional index halt a 10 a day slump. check out what is going on with the korean won. rising the most since july 26. we have the yen moving some up by a 10th of 1%. because of what we are seeing in july,in the search for with the last round of gdp data we got, that could offer more spurt to come out of the woodwork. nikkei up about 1%. let's check out what is driving gains. taking a closer look by using the function on the terminal. i want to show you what is going on when it comes to sex gains because we are seeing utilities inground today.

electric leading the charge. softbank is rising for a third day. the pictures are looking a little bit mixed. you have the sector off by a third of a percent as you have software and hardware players mostly rising. apple suppliers are under pressure. when you take a look at some movers want to highlight advances is among them. we have the semiconductor space under pressure and goldman warned of more headwinds for companies and pricing issues. spectrum, they are gaining ground. it is ready to share hybrid car secrets of china and gaining about 1.2%. they're reporting that the factory automation player plans to start operations at its robot system plant in michigan in the fall of next year. shery: think you so much. sophie kamaruddin checking the market.

let's not get the u.s. talk about trade because the was government proposing a new round of trade talks with china to avoid escalating the trade war, our chief north asia correspondent stephen engle joins us with the latest. the fourth, fifth round of negotiations at least? -- at least it is some good news they're still talking. reporter: this would be the fifth round a formal talks. nothing significant in the discussions. in none of these negotiations in the past four rounds have bared any fruit. august, theyion in met with the vice commerce minister and did not necessarily come to any agreement that were made public at least. that is where we stand right now. the stalemate and threats of further terrorist from donald trump. to bes time it is going according to sources familiar with the situation, the treasury secretary himself not as

undersecretary steve mnuchin would lead the talks. at least he and other senior officials were the ones that extended the invitation to the chinese. if china agrees that the sources are telling us that the talks will likely be held in washington dc. no date is set but i would assume it will be fairly some. economic advisers -- it would be fairly soon. confirmed thats the invitation has been sent and communication with beijing has picked up a notch and any talks would be a good thing. no promises though. there might be a breakthrough the. -- though. haidi: what hope is there that these talks will bear more fruit than previous negotiations? --orter: i am a bit of us the skeptic on this because it will be very difficult to get deliverables from china if you are at the white house. a big tanker cruising on the ocean takes a long time to make a turn. we are talking about structural changes for china.

it is interesting because larry kudlow says that the chinese have not come to the table with enough concessions or they have offered very few concessions. the thing is what is going to be acceptable to the white house could -- larry kudlow could say it donald trump is willing to meet with xi jinping probable -- possibly as early as november at the g20 in argentina. but beijing has previous is that what the u.s. has submitted as far as its list of demands, are unworkable. i am not so sure, even though meeting face-to-face is a good thing, i am not so sure that they will find common ground. haidi: think is a much for that array of hope. keeping our expectations certainly managed their. -- there. trade and oil at the top of the agenda. asian leaders showed a united front in -- in the face of

protectionism and trump sanctions. the russian president is now watching a big joint military exercise with china. it is game temper vladimir putin -- gametime for vladimir putin. it is a clear sense of beijing and moscow seem to be pivoting toward each other not just her to gently, economically on the business front, but also politically and militarily. it is the biggest type of drill we have sin since the end -- seen since the end of the cold war. it is quite a drastic move against the united states. now, that was one of the key scenes here at the forum. president putin set along xi jinping and other asian leaders where they help policies of multilateralism and free trade going against with the united states has been talking about in terms of trade policies with

beijing and sanctions on moscow. oil was another big theme here. no surprise there. it is the biggest ever of the russian economy. russia has shed some light on its capacity boosting oil output as much as 300,000 barrels a day in the medium-term. they will not be doing that just yet, they need to check market conditions and they need to discuss it with their counterparts at the opec plus group when they meet in all jeers. >> we have not just -- yet taken any decisions. we have just spoken about the potential we have and the spare capacity that is there. we will be discussing the decisions and some steps will be done -- will be taken. reporter: that was russian energy minister alexander novak. he said moscow, he will be toting down with rick perry

discuss the state of the oil market as well as companies in both countries. this comes at a very interesting time. paris had just recently met with the saudi oil minister in texas earlier this month. it also comes just weeks ahead of a -- iranian oil sanctions hitting the market. it comes while many lawmakers in congress are pushing for more bands on u.s. imports of russian crude and feel. bloomberg to the -- bloomberg tv, and reporter and, russia. china tries to catch up with rebels and the world's biggest oil sector. all the details next. this is bloomberg. ♪

haidi: -- shery: this is "bloomberg daybreak: asia." haidi: apple unveiling its

update wondering whether the new offerings can sustain sales. this time around there were three models to choose from. some analysts are already weighing in. morgan stanley has reiterated its bullish call after the event. raising prices yet again and yet also introducing a phone that is you could say, on the lower end of the market. what is the strategy here and will it work? at the end of the day the lower and prices not that low when you compare it to what they have done that low -- in the past and in the android market. if theytegy really, offer a product that is a higher price point that offers the kind of features that people want, good specs, nice design, from over the ios system that people are addicted to.

-- remember the ios system that people are addicted to. i think it is a strategy that will work. and they realize it will work. when people -- when apple came at with a phone at about thousand dollars they got away with it. even unit shipments are facing headwinds globally amongst all players. there is definitely a market therefore higher and/or higher price devices, apple knows that and they are bringing out a feature. three phones that play to the factor in the market. >haidi: what about emerging markets? --apple saying >> i think that affect their sims, it looks like they will bring out physical some cards -- sim cards. it just hasn't happened in the

iphone space like it has a space.ed in the android simle really are doing dual in their android phones because they are being prepaid, not posted contracts. -- postpaid contracts. apple has recognized that fact. the fact that they are bringing many dual sim option for markets shows that they are interested in emerging markets and they will offer products that will suit them. haidi: now we have three new phones, and you laptop, and you watch, what else is left for apple for the rest of the year? i think when you watch is something that we need to keep an eye out for. they are getting rid of the old edition watch, the very high-end expensive watch that came in gold at ridiculous prices. now they are refocusing the watch strategy. i think that is quite fascinating. they seem to be focusing a lot

more on the health side of it. it is less about fashion statement and more of a health thing, something apple really cares about. they are building it into the watch. that is one of the fascinating things we will see coming out this year with a lot of people buying them for christmas. they're coming out with a pro mac mini. they have ignored this for a few years. the mac mini is a computer that does not actually come with a screen it is like a little box. it looks to be coming out by the end of this year and i need to -- and i think we need to keep an eye out on that space. fact of people forget the that they're coming out with devices in that area that basically remind people that we do have computers and we think you are really going to want one. bloomberg's you, taipei columnist. china has a bid to catch rivals in the world's biggest oil market. let's get the details from the

auto reporter in tokyo, kevin. they have to doubled their trade secrets in order to make inroads. is this the only way they can actually catch up? how much momentum will this give toyota and china? -- in china? >> this actually really helped them with two of the goals that they have. one is to catch up in china as you said. they are hoping that hybrid is a way to do it. there is a lot of talk about the so andnev but also feel plug-in hybrid quotas coming into effect in china for next year. they have also got tightening restrictions. -- le are going to have to every automaker will have to improve its average fuel economy across its fleet and there seems to be a recognition that without hybrids, regular hybrids, they will not be able to do it.

delete to just pure electric vehicles is just to fall -- far to make all that once. for, the idea that hybrid technology is going to expand in china and it could be cleared us ever technology is a real advantage for them. they would become the de facto standard for hybrid. it takes it one step further. it is a huge gap to volkswagen ngm -- and gm. toyota sold about 1.3% and 10% .f those were hybrid definitely it would be a boom there is hybrids can really catch on. haidi: getting government back and from beijing would really be key to this. >> absolutely. to the extent to which the government backing is going to be coming, beijing has made quite a lot of moves toward

being more open for hybrid but .othing really concrete they have been very lukewarm so far. he also met directly with accu toyota, the president of the automotive. basically he said we want your help to meet our environmental goals. think about it in terms of having a complete lineup including hybrid and since then, they have been -- there have been lots of chinese officials visiting toyota is what we hear. have been a lot of approaches from chinese carmakers who want access to toyota's hybrid technology. talks are ongoing.

nothing has been finalized yet. forould be a breakthrough hybrid technology sharing because up until now, to your has made hybrids and china. they still do with their venture partners. but not just making the pieces but teaching how the pieces work together most efficiently. that is the piece that has been missing for the chinese makers to actually kind of copy should i say, that to technology. no toyota is willing to actually teach the know-how along with just how to make the parts. haidi: the highest form of flattery. there has been a lot of activity since that may. biggest much for getting us the latest on that. stories that you need to know to get your day going. visit our terminal, just a glimmer of hope when it comes to the trade wars as we have

reports that maybe another round of talks could be possible between china and the u.s.. you can also get it on the bloomberg anywhere app, you can get the news that you care about. this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia" -- shery: this is "bloomberg daybreak: asia." haidi: that get you the latest of the business flash headlines. the world's biggest dairy

operation will review its investment improvement. they were worth wonder 29 million u.s. dollars the shortfall in close to $288 million -- hundred and 50 million in damages -- $150 million in mad -- in damages. >> very disappointed to have to announce a loss of $106 million. the major driver of that was the 21-time events that hit us. the non-arbitration settlement as well as the impairment we took on the being made investment. even aside from that the underlying operations performance on earning spaces is disappointing. haidi: big tex has lost a battle in europe. the myth -- the lawmakers back plans for new rules that will help other right holders to help them with their online content.

preventill have to know -- will have to now prevent copyrighted material to appear in platforms. secondthis is the company that admitted that five units had falsified information on products delivered to more than 700 customers less than two months ago. in a scandal that has rocked japan for manufacturing. haidi: let's say japan because i want to highlight some of the stories featured on the bloomberg and i am looking at this profile of mdg founder -- of the mdg founder. he found a way to capitalize on sir power. something global -- on star power. globalstar power. he became a billionaire. he got cristiano ronaldo to come muscle --romote this

abdominal muscle training device. that sold over one million units in japan alone. in the process, he also had madonna just promote some skincare product and he is now worth more than 1.5 -- $1.7 billion . the story i am watching is a reversal. when star power backfires. biggestan is china's movie stars that you see at all the runway shows in red carpets. she has been in x-men and other movies as well. she has not been seen in public since late june. she has been caught up in this investigation into tax evasion. there is a great story on the bluebird terminal talking about essentially have authorities aree are -- policymakers steering away from the star power driven formula for cinematic success. they wanted to be based on

quality and homegrown blockbusters. whether this will be a little bit of a kink in beijing's attempt to outdo hollywood, we'll have to continue to watch out for the -- for that. at what isa look coming up over the next few hours on bloomberg tv. what are we watching? referring -- how are you guys? >> long time. >> i know. first, you guys were talking about star power. do not be surprised if a guy calls you up with star power there. we had the philippine secretary among the names coming here over the next the hours. lots of things to talk about. there is the inflation issue that has put pressure not just on everyday things but how the government spends its money. rates are on the way up.

do they need to allocate more money toward debt servicing? if they dollar debt, have any, might become a little bit of a challenge as well and you guys have been talking about this massive typhoon that is about to barrel into the country. how much they have set aside for that, how much can that cost the economy? no joins us, the philippine budget secretary. haidi: we do have a hurricane here in the u.s.. that is it for "bloomberg daybreak: asia." we look ahead to the start of trade in hong kong. >> the china open. this is bloomberg. ♪

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