>> welcome to daybreak yesterday, i am haidi stroud-watts in sydney. >> i am shery ahn in new york. >> and i am sophie kamaruddin in hong kong. we are counting down to asia's market open. ♪ haidi biz these other top stories are covering in the next hour, tech, health care and financials lifting u.s. benchmarks to new heights, with optimism that trade tensions mak may is.

ease. and oil pullback and in new york and london as president renews his a track best president trump renews his attack on opec and prices. >> let us cap a quick reminder on how u.s. stocks ended, they set new records with risk appetite surging. investors continued to shrug off concerns about trade tensions. we saw the dow catching up to the s&p 500 and the nasdaq, rebounding from the losses we saw earlier in the year, while the s&p 500 gained .8%, being lifted by tech, health care and financial stocks. the nasdaq gaining the most in six weeks. let us see how this stresses to asia. here is sophie, routing. sophie: after that rally in wall street come of it could be in for a happier fighting in asia. the convergence among global well. is alive and

even as it comes down to the imposition of u.s. terrorists against china on monday and the fed rate hike that hasn't baked week. next there is speculation that china will cut tariff rates for most trading partners, potentially u.s..he in japan, stocks could be looking to be back with a vengeance after the best five-day rally in two years and investors will have more to chew on after a busy week for japan. . today, we get inflation data which will likely add to the case for the boj to stay the. course on stimulus word of caution though, when it comes to chinese and hong kong stocks, after the rebound fizzled out and turnover continues to languish at historically low levels. enflows are likely to wan even more as public holidays shutdown hong kong and the mainland. there is also anxiety around chip companies that may revised after microsoft's guidance and the chip market may also be

moved by samsung reportedly lowering out next year to keep supplies tight. much, thank you so sophie. let us get you the first word news with jenna dagenhart. >> haidi, the uk's promising plans to break the brexit stalemate after eu leaders rejected terrorism may's movement and warned that time is running out. two days of talks broke out without progress and leaders put more pressure on the. prime minister to shift her stance they say that is special november summit to sign a brexit deal will only go ahead if the united kingdom makes more concessions next month. isly's five-star movement threatening to torpedo the governing coalition if they cannot carry out its election promises. their partner, the league's, are struggling to find resources to lower taxes, reducing the retirement age and reducing pure.ies for the

the prime minister luigi demaio told radio 24, he will walk away from the coalition is money can be found. fixed look and eu regulatory clampdown and sanctions unless it used to an ultimatum regarding users information. the commissioner says she is becoming impatient with the social network after two years of talks. this comes after airbnb a great to change its terms and conditions on pricing to meet eu standards. tesla can finally enjoy some good news. the model 3 has passed all the u.s. crash test. it simulates had on collisions, crashes into barriers and rollovers. top five star a rating on each test, which should be a relief after months of tesla crises making headlines particularly with the incident involving the controversial driver assistance autopilot system. lobal

global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm jenna dagenhart, this is bloomberg. . shery: jenna, thank you. it was a day for the bulls in the u.s. market with the doubt writing an all-time high, for no the exceeding its january top. all major indices have now fully erase their february losses. bloomberg's su keenan joins us now, the equity rally seems to be broadening? su: yes, in fact, the dow is one of the last wants to make it record high. there was concern about some major diversions, but strategists do one about trade risks. the bondr weakening, yield holding above 3%, a big story. the the s&p banking index had a big gain and continues to be a leader in the come back.

the nasdaq 100, the top. tech heavy index is also a big back.f the come the libor is another part of the story, you saw what some are calling a catch up as the libor u.s. dollar index liked as traders in the u.s. are seeing for rate hikes, two more in store. that is considered a catch up -- they are seeing 4 rate hikes, with two more in stores. amazon, announcing that it is increasing its home voice technology throughout the home, that will impact or provide a rivalry to sonos home audio systems. autodesk got a big upgrade on lanco'sargets, and e animal health ipo was also well received, it is phoned by eli lilly.

wells fargo also announcing they will cut 5-10% jobs over the next three years. data one also had good the u.s. economy, a solid pitcher when it comes to the labor market. that supports what a lot of people are saying. you take away the noise on trade, and this is a market that is being fed by higher fundamentals? su: yes, you can find our library of stocks on the bloomberg gtv library. here, we have divided the comfort index, blue for democrats and red for republicans. you can see that it is increasing jobs data. , job numbers were out on thursday. what we found is that it is really at the lowest we have seen in decades, unemployment is continuing, a robust piece of data to support a recovering labor market. haidi: thank you so much for u, a really robust

session in u.s. markets that equities continuing to grind higher. let us take a look at another major story driven optimism particularly here in asia. beijing is planning to cut the average tariff rate across imports from the majority of its trading partners as soon as next month. at the same time, it is also on some american goods to retaliate against trump's tariffs. we have our congress editor who has our details. joe, what kind of impact are we likely to see in the broader trade conflict with the u.s. picture. >> it is still sort of unclear because not all the details of this will-- how impact you as imports in particular. the u.s. does not export a lot of china, a very small portion compared to how much the u.s. by from china.

china continues to have higher than average terrace for a highered economy come -- than average tariffs for a developed economy. we will have to wait for more details, but what this does is it is an attempt by china to perhaps soft and the blow from a cooling economy that has come partly as a result of the trade war, to spur domestic consumption, which has been one of china's long-term goals. is the u.s. coke you wish and that they have an advantage over china because of exactly what you mentioned, a slowing chinese economy? time,ight, at the current the u.s. economy is humming along, the u.s. markets have risen about 10% since the first round of tariffs went in march effective -- went in effect in march. but that edge is likely to start eroding over time, over the next years.of reported that is a stimulus from

the tax-cut that took effect of this year in the u.s., they will start to dissipate. and the fed is considering raising interest rates as unemployment keeps dipping low, so that will probably also cause a little bit of a slowing in the u.s. economy. that thevantage president has at the current time with this trade war is likely to dissipate over the next couple of years. in addition, you continue to see opposition to the tariffs particularly from interest groups and voters. shery: and president trump also threatening auto tariffs on canada if there cannot reach it deal on nafta. we know that the foreign minister has been here all week ourng to negotiate with trade representative, but it doesn't seem to be going anywhere and we are hitting a deadline? joe: let's, we're getting close to it. in order for the deal to be signed before the new mexican president comes into office,

they have to get everything tidied up and published by the end of this month, that means that any sort of deal would have to be agreed to by the three principal parties fairly soon, in order to get that all wrapped up in the language agreed upon and published. u.s. is continuing to signal that it was to keep and reserve its ability to use these so-called nationalis national imports --riffs on auto imports, which remains a sticking point between the two sides as they continue negotiations. shery: thank you so much jail, in washington. still ahead, could a trade war save the aussie dollar? we will talk to scott kennedy next. and, can commodity prices most in emerging-market rebound? this is bloomberg. ♪ this is bloomberg. ♪

♪ : welcome back, i am shery on in new york. haidi: and i am haidi stroud-watts in sydney. how long can the gains go on? is the principal global investor australia ceo grant forster. thank you for being with us. it is pretty extraordinary, does it feel like an equity market that was to push higher? scott: that is the key point, there have been outstanding equity returns, not just this year, but really since global .inancial crisis, almost unmatched we have had really good times, and we think those good times are not sustainable. over the next couple of years, we will see some change. rather than get two tied up -- rather than get to a bank tied up in the trade talks, which are

important, it is time for investors to sit back and look at their portfolios. it has been pretty easy. haidi: not being easy, but certainly cheap, when you take a look at the em space at the moment. we had an interview with someone who is well attuned with emerging markets and he said that right now, everything is so cheap right now. how optimistic would you become a particularly when you take into account of the trade war being out of the way? would there be an emerging market rally? scott: if you have a genuinely long-term perspective strategically, you should be waiting and getting some of that exposure. principle, that, at we are looking at superannuation funds, pensioners come out we think there will be better option to need to get into -- pensioners, we think there could be better opportunities to get

into emerging markets. you will see longer rates pushed up again. we need one more leg down in emerging markets to get exposure. i should also add, divergence, dispersions amongst markets will be interesting, whether equities forward.ing going you saw this year, turkey and argentina, the way their. central. banks reacted, especially turkey, with lack of independence yet in asia, you have seen independent central banks taking quick action and raising interest rates. so there is just version and you have to be proactive in your approach. haidi: talking about the impact of rising rates. i would like to get your view on the yield curve expansion -- a possible yield curve expansion, almost 3.1 percent was the low we saw in a 10 year yields overnight. and does not seem to recall relating with the equity markets as we did back in april -- it doesn't seem to be correlating

with the equity markets like we saw in april. scott: you could see in the next two years, you could get a approach. at the moment, fundamentals and very places are very strong, u.s..ularly in the perhaps it is the year of main street over wall street, meaning that the fundamentals are really strong. you were talking about jobs earlier, the u.s. boom -- boom ,s not a very strong word liquidity, using as been going on for far too long. when that starts to kick in, you will see corrections. u.s.: to haidi's point, stocks just set new highs, this chart is showing the s&p 500 did a whole dance of breakout, rally.and we saw the s&p 500 again at a new record, and then, the russell 2000 again below their

highs, but still consolidating pretty well when it comes to the last few sessions. there was a difference when it came to a small caps and big caps, the understanding that small caps would be immune to trade tensions. is there such a thing now when you see such a broad market rally in the u.s.? that the impact of the trade tensions, particularly to the u.s., is fairly sanguine. tohink it is important global markets especially to em, and china has a bit more to lose in the current discussions. the percentage of gdp that is trade related or exports is much smaller, so we do not expect this to really derail u.s. growth at all. are up,omy is up, jobs

even though chairman powell suggests that there is some slack in the economy which could be taken up with wage inflation. we think, expect, broad-based continuation of equity market returns over the short-term. but as i said earlier, we are watching yields get pulled back, three .25 or 3.5, i don't see any doubt about that. shery: could the federal reserve be the cause of the market downturn if we see inflation you up a bit? but still, if get the tariffs on top of that and the fed me feel the need to act more quickly? scott: the fed will come and we think institutional investors might not feel the impact to u.s. goods on tariffs, we don't think it will be significant, but i do think you will see two

short-term raises this year in the interest rate and likely more next year. i think the impact of the tariffs, more than its impact, which inflation is what we are looking at. 2.8% over the last few months, 3% annualized over the last quarter. soes are starting to go up, you don't want to take that too that is a pretty key number in connection with those longer-term rates. shery: we even saw jobless claims today tumbling to a new decade low. thank you so much for your time, australia ceo for principal global investors in sydney, scott kennedy. amazon sees alexa and every room, including the kitchen. more on that, next. this is bloomberg. ♪

♪

biz i am haidi stroud-watts in sydney. shery: and i am shery on and new york, you're watching "daybreak australia are: ." thiss closed 5% higher for automaker they do in hong kong, giving it a value of almost $51 billion. it raised $4 billion in its ipo,. the listing also made the founder and ceo worth $5 billion . american airlines has become the last of the leading u.s. carriers to raise the fee for checking bags. $30 per bagcharges and $40 for a second. and delta adopted the fee

after jetblue took the lead last month. southwest is now the largest u.s. carrier that does not charge for a first or second bag. an airline from dubai is considering a takeover that would create the biggest carrier in the world by passenger traffic. we are told that talks could be of ma rates leaving -- could acquire em -- we are told that the toss could be of less rates could memi be taking over its neighbor airline. vice president william o'connor is said to have resigned from ties luck, we are watching that story developed, which speaks of chaos for the company as elon musk continues to suffer from the effects of that controversial funding

tweet. there are a number of investigations going on, and tesla's stock price has been hit as well due to the turnover when it comes to management. the vice president again, liam o'connor, said to have resigned from has a. amazon has revealed that its --t-generation of god amazon, after reaching a trillion dollar market cap has revealed its newest tech gadgets. the echo. is its newest device. >> it has a completely new industrial device, fabric-based, comes in multiple colors, and it has a more powerful sound. we changed from a 1.1 inch driver check a 1.6 inch driver, volume, itmore back is 70% louder and has much clearer sound. haidi: spencer, our bloomberg tech reporter joins us. what stands out for you? it really is about being part of

every room and every home, isn't it? >> yes, a real broad range of devices. you have things for home security, speakers, sub oh-fers for entertainment, they it reinvented the -- the have also reinvented the wall clock. taking its alexa platform tech the appliance industry, the even microwave.xa powered another feature of the microwave ble to his synca service and can monitor how much popcorn have eaten and automatically reorder it if you amazon's o it is to .ash service amazon is trying to flood the zone, stay ahead. they were ahead with the echo

that the introduced in 2014, the smart speaker and the have introduced better generations of it, higher cost ones with screens and lower-cost ones that are tiny. so they keep enhancing their products and introducing new ones. they want to make sure that whatever at customer is looking for,. they have a solution what we saw today was a lot more specialized devices, things for speaker enthusiast, they want to make sure that those people are not neglected or that they go to another competitor like saunas, they want to make sure amazon has a device for them. shery ahn: just ahead, the fight for trump's supreme court pick. brett kavanaugh's accuser may not testify as early as monday. we will get you the latest. this is bloomberg. ♪ this is bloomberg. ♪

♪ haidi: it is a: 30 a.m. here in sydney. we will look at how the features are shaping up. a little bit more positive, overall mixed sessions in asia with trade concerns on top of agenda. when you look at the overnight trading in the u.s., the s&p and dow both hitting record highs. it does seem like a market that wants to push ever higher. i am haidi stroud-watts here in sydney. shery: and i am shery on end in new york where it is 6:30 p.m., and now we get to the first word news. here is jenna dagenhart. >> canada admits that nafta talks are dealing with tough

issues, but it says all times are working towards a deal -- all sides are working towards . deal- the canadian minister maintains that their deal is to come up with a deal that is good for canada. more talks are expected in washington next week. president trump is attacking opec again, demanding lower oil prices as brent crude benchmark whic near as it is dollars -- nears $80. i ran added to the pressure on opec by saying it would veto any harmful. that are the oil minister says the 2016 sup ideal is in tatters and of the cartel has no authority to impose a new one. to be in talks to sell its interest in the gulf of mexico oil field to focus oil. we're told the deal could value

billion.pany at $1.3 talks could still collapse, but a sale could help shall pay down debt after it spent more than $50 billion purchasing another oil company back in 2015 women's soccer. . these are has agreed to fund flights for the women's soccer team heading to the world cup. men's world champions france earned $38 million for winning in russia while the united earned just $2 million for winning the women's trophy just three years ago. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am jenna dagenhart this is bloomberg. shery. you.: shery jenna, thank

semiconductors, let us see how they are doing periodic we go to sophie kamaruddin with a check on the hong kong markets. sophie: chip stocks will be hot on the reader given the catalysts on reports of what some sun may do with its output next year, so we could see again, in korea and we are futures point higher. we may see bargain hunters on the prowl given the cheaper valuations. the risk sentiment has helped to lift emerging markets as well. forrester saysl he thinks folks should be leaning toward e.m., and there's optimism, which has to do with the momentum loss for the dollar. em currencies are attractive, as cooling.y is i want to draw attention to a recent calls around the aussie-kyrie cross, with voices saying that kiwi might lose. this is the line in white on

this chart, they are looking to be in australia's favor, rising to for your highs. one of the companies forecasting that the aussie will be 120 over kiwi next quarter of next year, ,.9% rise over current levels haidi: last seen since. haidi: 2013 think is so much, sophia. . adam haigh is here with us in sydney. the resent a rebound in asian equities was short lived, what would be a catalyst for a sustainable rally? >> i think what of the things behind the recent rally has been ,he idea of it backed funds there was short-term relief that came on that, chinese equities fell into a bear market. hong kong markets are also dinged as well. so the idea did not really have any longevity to any sustainable a rebound. i think the sustainable rebound will have to come from policy

and how policy dictates its self over the next few months as a going to the back half of the year. you can see it on the chart here in the gtv library, it shows the technical set up for hong kong stocks, still pretty poor, still downtrend. turnover is still pretty low both in hong kong and china, so without any indication of policy support going beyond those expectations, i think what you have is a risk sentiment to help equities in hong kong. you don't really have any other buffer to get things going on a more sustainable basis. let us talk about the good news story for the recovery stocks.panese so far this year, almost half of the trading volume in the japanese stock exchange has been shortselling? incredible, isn't it? 40% of the entire volume has been on the short side, and that

shows you how extreme the positioning is in the japanese equity market. we continue to hear from b ulls,, and even in global portfolios, there are good reasons for why you would want to hold in the market and keep adding to that weight, especially now that the governor shinzo abe seems to be hanging around longer on the political side of things. but really, you have a more buybacks, a slope bubbling change in the corporate governing structure in jet and, and ultimately it comes down to valuation. as you know, the price on the topix index is 1.3 times book, something like that. on the s&p 500, you're talking about 3.5 or more. . shery: on the global equities space come of the japan's stock market is still incredibly cheap adam haigh, thank you so much. bloomberg's markets editor adam

haigh. if you missed out of any of his charts, gtv is the function on your bloomberg. we have breaking news right now, facebook now saying that they will give less direct help to president trump's campaign in the presidential election in 2020. of course, the firm had been questioned about their campaign support in the 2016 elections. the company now saying that it will continue to offer technical support and basic training to candidate camps and political advocacy groups, but it would not visit campaign headquarters as much as they did it back in 2016. instead, they will work to improve the company's political advertising website, to give free advice to campaigns more equitably so again,. facebook will give. lesson there were tell to president trump's 2020.gn in

another issue making headlines here in the u.s., the woman accusing supreme court nominee brad kavanaugh of a salt could rove -- of sexual assault, could testify next week. we are joined by bloomberg opinion columnist jonathan bernstein. we just got the latest lines right now from judge kavanagh saying that is sending a letter to the senate judiciary chairman chuck grassley that he will be at the september 24 hearing on monday, that he wants the hearing as soon as possible and denies categorically those claims. what does this mean for the supreme court nomination going w?ward jonathan: we know that he is denying these serious acquisitions, we don't know yet how it will play out next week, but certainly, we think he will show up and we have to hear from the lady making the accusations.

shery: they are accusations of sexual harassment which they had before with justice clarence thomas, and there were also allegations against president trump. if the nomination goes forward, will the gop face an image problem here? jonathan: i think the supreme court will face a real problem. to have two problem on the supreme court, two justices, one of them with very serious accusations of sexual harassment that are as close to proven as we can get, and then the second case of an acquisition of sexual assault that is far from proven, that we don't really know right account it is a serious -- for women to look at the highest court in the land, it sends a message that they are not equal citizens. that women are not taken seriously by this court system, and that is a real problem. haidi: in terms of practicality,

time is really running against republicans that want to get .avanaugh confirmed jonathan: they have plenty of time to confirm kavanaugh. if they can't pushing on him and his nomination falls apart, they start to have less and less time to finish a replacement before the new congress opens in january. right now, the halftime. there is still plenty of time in the lame-duck session after the election for them to confirm another replacement. the problem is, as you get into september, october, if the nomination falls apart, will they have some real problems? that would only matter if the republicans lost their majority senate. right now, they are favored to keep the slim majority, but we do not know yet. shery: what does this mean for the presidential elections in 2020, we just got news from facebook saying that they will help less the campaign for president trump.

we know that his approval ratings have been around 40% for .he longest time jonathan: republicans clearly have a problem with attracting votes from women. we don't know whether anything in particular would make that stick more or make it a harder situation, but there are a lot of people who do care very much -- takingsations accusations of sexual assault seriously. i cannot be good for president trump to focus only on that segment of the electorate does not care about that sort of thing. they have been trying on the judicial committee to take it seriously, but the proof is in the pudding. what are they actually going to do it next week. jonathan, thank you so much for your time, bloomberg opinion columnist, jonathan bernstein. our next guest sees little chance of either trump or president xi jinping backing

down in the terrified. he joins us from washington. this is bloomberg. ♪ this is bloomberg. ♪

♪ haidi: i am haidi stroud-watts in sydney. shery:. shery: and i'm shery ahn in new york, you are watching "daybreak australia." our next guest says he sees little chance of de-escalation short-term.n the scott kennedy is the director at the center for strategic and international studies. great to have you back, scott. we have seen beijing's retaliation a bit measured, i would say. 5-10 percent tariffs on $60 billion of u.s. goods come but not to mention they said they would not be using weakening the yuan as a weapon. isn't this a more conciliatory measure from the u.s. -- to the u.s.? aott: i would say it is

modest. sign of conciliation certainly, the chinese do not want this to devolve any further than it has to, and it looks than they are ready to make compromises to address any of the trump administration's major concern on the chinese industrial policy. this keeps products slightly more affordable for the chinese who wants to import them, but i would not call this a major concession. i think we are still headed on an escalation path in the coming months. shery: is that because there is no drive for both sides to reach a compromise? how much pressure is there on both sides to reach an agreement? scott: in the united states, we have unemployment under 4%, growth looks relatively strong, the stock market is solid. 's amongstent republicans at least, is high. so there is no pressure for him to give way.

on the chinese side, exports lagging andot they are not really that important of a source of growth either, so you can see both sides continue to dig their heels in as long as both sides of their economies hold up. thesisthere is also the that president trump actually was the trade war to linger, because it is one of the few issues garnering bipartisan support still in washington. is there credibility to that, because you could say that the reason why washington has not set out a list of achievable demands from beijing, is because they don't really need this to go away? scott: i am sure there is a kind of political calculation in this white house. every president does that. shownesident trump has for 30 years that he is a trade hock, he is following -- a trade

hawk and is following his instincts. that have members of his military structure, his trade advisers, who are not really looking to negotiate but build the wall higher with china. so the soft line the u.s. are deal,who would accept a but only one including massive concessions on the chinese industrial policy. the chinese have said that made in china 2025 is off the table, so really, the gap could not be wider between the two sides right now. haidi: we have also seen in the last day also, china saying that they will be cutting tariffs on goods traded with its other trading partners. does that help push in the effect on consumers in china, and also, to what extent do things like the massive economic push that china is making elsewhere that does not involve the united states, does it also give them some economic buffer from the trade war? scott: modestly.

i mean, certainly, their relationship with the united states is very important for china, for exports, investment, technology, management, that is notthing that they could replace in expanding ties along the one belt, one road, although that could be good for growth as well. if you are looking at what would put pressure on the chinese and change things, that is not going to happen. in terms of reduction and import tariffs, the u.s. is supposed to benefit from that, but they will keep those tariffs in place and put the u.s. in even greater advantage. i think this looks good on paper in terms of china cutting imports, but the big problem for china's engagement in the global economy are not tariff barriers, or import restrictions, and the chinese has only said that the are going to modestly change those things.

shery: you mentioned china vision 2025, we have already seen it moves here in the united cifius,to strengthen sif the community of foreign investments. how effective will it be in controlling china? scott: modestly. it is important for the u.s. to have a strong defense in terms of protecting its ip and technology from unfair practices and illicit needs, and ius exporting cif controls do help the u.s., but that does not help the economy enough. what is missing from the current strategy is a much stronger offense, promoting american industries, innovation, strengthening american infrastructure and also global roles. we had the obama administration pushing tpp and the eu has

issued eight structure to reform the wto. you could play good defense i guess the chinese, but that would not solve the problem without a good offense. shery: always great to have you with us scott, thank you for being here. we have the woman accusing supreme court brad kavanaugh of sexual assault, that she may be able to testify next week, and we heard of the letter by brent cobb and not to senator chuck grassley -- the letter by the supreme court nominee brad cavanagh saying that he is ready to testify. we will have more on that coming up on "the request really up your car this is bloomberg. ♪ -- we will have more on that coming up on "daybreak australia." this is bloomberg. ♪

-- shery: welcome back, i am shery on in the new york. haidi: and i am haidi

stroud-watts in sydney. facebook saying that it will to thess direct help 2020 political campaign for election for president trump. we are joined by sarah from san francisco. >> so there was this whole controversy last year about how facebook had its direct relationship with the trump campaign, but it did not with campaign.n they were actually asked to testify about this in congress that theyanswer was offered identical support to campaigns. although, of course, the trump campaign accepted the support and the clinton campaign did not. what we saw was a very different type of facebook strategy from each campaigns. cut back on that strategy for the future, facebook said it would no longer do this kind of embedded work with campaigns, this on-site strategic work, that they would do more of a

support role, making it equitable, with a website that has information for anybody who is running. shery: what about political inertising websites, is this order to make everything a bit more fair to what the candidate? sarah: the website is supposed to give people the kind of strategic training that facebook could offer on-site. what is interesting about this, is facebook's approaching politics the same way it approaches its other clients. the more you spend, the more invested you are in facebook's system, the more help they will give you. that does not quite work in politics, because people see you helping one campaign whether the other, and they start to wonder if the platform has bias. facebook has been scrutinized from bias on the left and on the right, so this is a company that really needs to beat neutral, or at least, appear as neutral going forward as they can.

toolis is a democratized that everyone can use at it looks better than direct on-site support. tech: sarah, bloomberg reporter, thank you so much, joining us from san francisco. japan.to two days after the boj meeting, the government says it that what needs to be achieved for the governor kuroda to be did they our correspondent is here with the consumer price report. kathleen, we expect a healthy jump, but nowhere near that inflation target. kathleen: but if you are governor kuroda, you are saying that that is a good direction. jump into the bloomberg with me, the main number we will look at here and this chart is the cpi line.foods, the white

it was last at 0.9, it is supposed to go up to 0.1. bloomberg's economics -- it was supposed to go up to 1.1 over year, bloomberg's economics analysts see it dropping. putting this into perspective with the meeting this week, in july, the boj said that they would keep the rate at an low.ded period very but tweak in yield curve control was aimed at keeping the rate that yield, to keep curve control of higher than 0.2%. people are worried about that. , this chart,t down i will try to do it right in the middle of the conversation -- i went to show yo an interesting story -- i wanted to show you an interesting story written by our bloomberg reporters in tokyo.

the bank of japan is still higher than it has ever been, the rate of increase has slowed. this has to be reassuring to the boj on where they are heading. the more jgbs the by, the fewer they have to buy, that is the bottom line. i think what is important with prime minister anna: reelection, people are saying -- i think what is important with the prime reelection, it is a reinforcement of fiscal stimulus, reregulation and reducing that. monetary stimulus at the top of that list. the of every election is probably good for stimulating growth and continuing the fight, haidi. haidi: yep, he is said to be the longest serving premier in japan after years of revolving door leadership. thank you for that, kathleen hays. let us take a look at how we are setting up, going into trading day in asia. record highs when it comes to the s&p and the dow overnight.

sydney stocks are looking to open up by about .5% when we get trading. there was also sustained a strength from both the kiwi and the aussie dollar. plenty more to come. this is bloomberg. ♪ xfinity mobile is a new wireless network

designed to save you money. even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that has the most wifi hotspots where you need them and the best 4g lte everywhere else. saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today.

sydney. asian markets and our only from open. shery: good evening from bloomberg's headquarters in new york, i'm shery ahn. sophie: i'm sophie kamaruddin in hong kong. welcome to "daybreak asia." shery: our top stories this friday, asia-pacific markets to extend gains after highs on wall street as optimism that trade tensions may ease. the dow writing a seventh game in eight days, finally a long slow from the january rise.