>> welcome to "bloomberg daybreak: australia." >> were counting down to asia's major market opens. haidi: these are the top stories recovering in the next hour. president trump addresses the united nations. iran says he is committing economic terrorism. felltrious lad, treasuries

as the fed starches latest policy meeting. oil gave up early gains on reports of a surprise increase in american stockpiles. let's get a quick check of how markets ended the tuesday session on wall street. the s&p 500 fall for a third consecutive session. investors a little more jittery about trade tensions. tradeent trump stoking tensions, saying china is taking advantage of the u.s. at the you in general a simile. with all the downfall .3%. energy producers tried to pull the benchmark up. we saw them gain ground with oil trading at the highest level in four years. nike post orchid fall because they missed on gross margins. instagram founder says they will be leaving the company. let's see how things are playing out for the asia open.

to --: we may be looking for a strong move on wall street. we have a mixed session potentially and stock futures pointing higher in tokyo in sydney. over in new zealand were seeing a nudge lower ahead of new zealand's trade balance which is due out in about 45 minutes time. and we are waiting on singapore's factory output along with japanese machine tool orders. that will continue to reflect the short-term impact of u.s. -china trade tensions after resolve that contraction in the numbers for august. given latest bout of trade wars, keep an eye on what's going on with japanese stocks because they look set to extend gains after a seven-day rally. green on the screen as side, when it comes to caution, with the fed decision looming, that will have investors on their toes. for focus on the outlook policy normalization.

let's check in on the yen ahead of that. this amid speculation the fed may strike a hawkish tone. the lowest of the year for the yen. investors will likely want to watch out for the outcome of the trade talks and see whether japan can prevent the u.s. from japan isthe tariffs very much wanting to avoid. haidi: let's get you the first word news with jessica summers. jessica: president trump addressed the united nations and prompted over and laughter as he lauded the success of his administration. he was scheduled to be second after the brazilian president but the speech was followed by awkward pause as they prepared ae podium to accommodate wheelchair.

>> in less than two years, my administration has accomplished more than almost any administration in history of our country. true. didn't expect that reaction, but that's ok. sophie: and more on the you in general a simile in a moment. and amounting to economic terrorism comes begin at the yuan, president rouhani said the trump administration make international institutions irrelevant. it is approaching diplomacy with a "nazi disposition." he said dialogue starts with ending threats. jessica: indy has bowed to u.s. pressure and will not buy any iranian oil in november.

that's when president trump's new sanctions come into effect. copies that have not ordered any crude for november loading. other big refiner said he had no plan to do so. the refiners could still change their mind. negotiationsrious trade can only move forward if the trump administration lifts its impose tariffs on cars. sources tell bloomberg law that potential duties on imported autos or leading issue, as the two sides attempt to avoid looming trade tensions. 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 jessica summers. this is bloomberg. trump's turn at

the u.n., making a ran the headline of his address in defending his decision to pull out of the 2015 nuclear agreement. >> they do not respect their neighbors or borders or the sovereign rights of nations. instead, iran's leaders plunder of the nation's resources to enrich themselves and to spread mayhem across the middle east and far beyond. >> president rouhani hit back saying sanctions amount to economic terrorism, but they won't succeed. bill, you weren't kidding when you said last night that it would be a heavily iran focused week. they seem to have replaced north korea as a main rival of president trump's address.

absolutely. last year it was painted as kim jong-un as a madman on a suicide mission. the u.s. presses its case ,gainst the nuclear agreement and tries to get more international support for basically a strategy that has a won a lot of global backing so far. so interesting to see president trump making a u-turn when it comes to north korea as well. bill: he feels like he's made some big strides and he and kim jong-un a good relationship. he's been talking about having a second time in very soon. we expect secretary of state pompeo to be headed to north korea perhaps in the coming weeks to try to set up a second meeting. haidi: as expected, the trade war with china made it into the area of grievances. bill: it was one of the broad

issues that president trump raised in his speech today. he said he had a good relationship with president xi, but he feels like the trade deficit with china is unacceptable and said he's sticking with his plans to continue imposing tariffs more than $250 billion of good. interestingalso that we caught world leaders laughing at president trump when he talked about his administration doing better than any other in the history of the country. there is a big disconnect it seems right now between the trump administration and some u.s. allies as well. just generally in this global environment. right. the trump's speech was pretty measured by his standards, but there was a point in the beginning when he made a reference to all his great accomplished being that's a compliment the best in american history m&s a kind of statement world leaders were not prepared for and started laughing about. after that, the president

released up to his speech. but you've seen this divide between the europe's -- between the u.s. and europe. this year he is a well-known quantity. they are embroiled in trade wars with the united states and questioning whether the u.s. is committed to nato. they are worried a lot about the america first rhetoric that the president continued to defend today. they know him well now and know what to expect, but there are a lot of frustrations on the international scene with president trump's policies. haidi: bill, thank you so much for spending time with us. still ahead, the fed decision looms. will look at when the cycle might in. u.s.-china trade war is only going to intensify. this is bloomberg. ♪

haidi: we are counting down to the open of trading here in sydney. how the future session is shaping up at the moment. nursing seeing a little bit of optimism coming through, about .1%. we still have south korean markets, so still and incomplete trading session setting up in asia today. shery: you're watching "bloomberg daybreak: australia." that's dive back into the u.s. market close, stocks edge lower -- sarahd meeting joins us now. the markets struggle for direction in the beginning but then we ended the session lower. the nasdaq was a little higher but the s&p 500 down or a third session. what actually drove the markets today? google, we aree,

still calling them all tech stocks but it seems like we are in wait and see mode. we saw the s&p and the dow fluctuating throughout the day. people are focusing on the fed decision tomorrow. a rate hike is pretty much a done deal but people want to know what the commentary is going to be like going forward. what does it mean for december and 2019? we've seen 10 year treasury and were seeing some rate sensitive stocks lower. if you look at utilities, the worst performing sector today. so you see some of that play out there. higherwe had the nasdaq but you look at semiconductors, we are still seeing pressure in that segment. are there still concerns about the outlook? >> we've seen wobbling is there a lot lately. before we heard morgan stanley call out a warning.

now we have another one from raymond james. an analyst from raymond james meetingsia last week with companies and came back and downgraded the area, and said we could be entering a cyclical downturn for semiconductor stocks. the philadelphia semiconductor index was down 1.7% today. namesle of the individual were all lower, more than 4% today. still seeing a lot of concern in the semiconductor space. >> and nike stock prices were lower after earnings hit the wire. it was a mixed picture, but gross margins concerned investors. why? >> it's a mixed picture, but it's the gross margins that it missed estimates. that is weighing on the share price because on the other hand, we did see revenues in north america higher overall.

there was a lot of hype surrounding this because of the .ecent announcement the quarter get in before the announcement and we did see some wobbliness and fragility in nike as they are dealing with this. sara.nk you so much, sees more tot come. he joins us now in sydney. great to have you here with us. miss pricingarket another acceleration? i would expect with roughly half of all chinese imports in the u.s. being affected, you would have a market reaction. scott: i was surprised that the tarifffocused on the 10% rate rather than what i think is the inevitability of the rise to 25%. amount and ige

think it will have material implications on the u.s. supplies training. haidi: you've acknowledged feeling a little bit like you a stomach for adventure at the moment. i want to pull up this chart looking at the outperformance that we've talked about of u.s. equities. emerging markets essentially seem to be regaining some of the losses but failing to break out of the down trend. is there a chance given that we do still have the u.s. 10 year pushing 3.1%, that we will see a repeat of the volatility that we saw in february and that will mean another leg lower? scott: it's possible there could be another leg lower in the em cello. when you look at valuations come you can argue it's not as weak as it has been in the past when you want to take long positions

in the emerging markets. notwithstanding that we have trimmed risk of a little bit, we are still optimistic on the global cycle. we think the macro is still very good. the synchronized nature of growth we still think is going to be there. were just taking a little bit of risk off the table, given that some of the risks around the u.s.-china trade war are at -- at a fuller escalation could actually damage. bring in some breaking headlines. we are hearing that the senate judiciary committee is scheduled for friday vote for supreme court nominee brett kavanaugh. the senate committee posting his business meeting details to their website and we are now hearing that their schedule that friday vote for brett kavanaugh. sexual assault allegations and his confirmation has been put in question, although the white house is due behind his supreme court

nominee, brett kavanaugh. now we are hearing that judiciary committee has scheduled friday vote for brett kavanaugh. we will get you more details as we get them. this get back to scott and discussed the markets. i understand that you have closed out your overweight u.s. equities position. this chart on the bloomberg library showing us that analyst earnings expectations, when it , the 2019he s&p 500 sales forecast is the line in thee and the blue line is estimate, rising higher. why did you feel is necessary to close out your overweight stance? to ourwe wanted to talk clients about remaining engaged with risk. we don't necessarily see this as the end of the asset and economic cycle. we think it is more a touring cycle, but we did make a relatively courageous decision

to go overweight u.s. equities on the first of july a really try to capture some of the strength in the u.s. economy that we saw through q2 and q3. riskecision to trim the back to a neutral position is a reflection that that trade had worked really well over the three months. the s&p was up 9% and given the developments around what we think is a clear escalation and not really a short-term tussle about midterm elections, really a long-lived tussle between the u.s. and china and global dominance, with civic taking a little bit of that risk off the table and moving a little bit underweight equities, given it is a entering cycle. not all in merging markets are created equal, obviously. if you look at opportunities in that space, do you see any areas

or geography that might be better sheltered from the trade war? scott: we are seeing growth expectation for a broad range of the asian economies trimmed on the back of the escalation of the tariff dispute and the potential for slow down of global growth and trade as a result of that. most of those cuts are coming in places like korea and singapore and thailand and malaysia. countries like india and indonesia, they are little more insulated and we are seeing less. we still like asian tech. obviously we don't want to overpay for growth. areas like insurance, financials , still areas we are quite interested in. we tend to encourage our clients to look at the companies they want to have in a long-term portfolio and certainly take opportunities to build those stocks into those portfolios when they become cheaper.

so there are definitely some parts, tencent, alibaba, we are certainly interested in those socks at those sort of levels. haidi: they did so much for that, scott, here in sydney. next, here what the google china president says he sees in chinese take getting in the way of the u.s.. this is bloomberg. ♪

haidi: we have the latest headlines on the bloomberg. the prime minister japan saying he has agreed on a trade strategy. we've heard the economy minister was holding a second round of trade talks with u.s. trade representative this morning. we are now hearing from nhk news

that the economy minister has agreed on trade strategy basics. japan and the u.s. still not agreeing on whether they want to pursue a free trade agreement, which the u.s. wants, but japan wants to continue the transpacific partnership and bring the u.s. back in. haidi: absolutely. speaking to reporters in new york, saying they've agreed to the broad direction the bilateral trade relationship should go and hoping to have more details on wednesday. donald trump has made no secret of how displeased he is with that trade balance with japan. technology is one of our top stories today. the ongoing trade dispute between washington and beijing, china's made in 2025 program. we have the founder and ceo and former google china president,

he spoke to bloomberg about who is winning the intellectual property race. >> the u.s. is ahead in research in basic technology. china is faster in implementation. it will probably create greater value out of the technologies, but it's really not a zero-sum game. like us arevc's finding chinese companies in selling to chinese users and the americans are doing the same on a separate pillar. both can be very successful. they are not yet competing for the same customer. >> there's a belief in the united states that goes back to japan, that basically japan and china are able to take what the united states invents and then replicated and make it faster. but they're not really capable of innovating. is that true or false today? >> i think it is false. on myhow you my apps

phone, you would be shocked how great they are. in china, there is no cash anymore. the innovation has gone to a stage where everyone just pays each other through their phone. there are now robotic fast food restaurants we invested in. robotic pastry shops. to buyto the internet things, for food delivery, shared bicycles, china is very innovative now. they take it much farther, much faster. but we have payment apps in the united states, you have apple pay. if i were able to take those apart, would i see they are entirely different, or to what extent may president trump have benefited in getting access to some of the intellectual property created in the united states and then using it in very clever ways? >> if we take the payment apps,

chinese are very ahead. anyone can pay anyone. and micro-payment capable, $.15 per transaction. unlike the credit cards or even apple pay is credit cards behind it. on the other comment, we have to carefully separate i.t. infringement from who came up with the idea. actually americans came up with first electronic payment, but china builds a better product. there is no infringement on the ip in this case. >> he was speaking to bloomberg's david westin. up, one ceo saying airlines a word about the consequences of an escalating trade war, not to mention surging oil prices with brent crude at the highest since 2014. that discussion, coming up. this is bloomberg. ♪

haidi: it's a: 30 a.m. here in sydney where markets open in about 90 minutes time. did close outsion the tuesday trading session flat. quite a bit of uncertainty over trade and shared political development as well as domestic politics in washington, distracting investors as well. that's why we did see the wall street session ending lower. s&p seeing losses and the nasdaq seeing some gains. is 6:30n new york it p.m.. the 10 year yield putting

pressure on rate sensitive sectors. let's get the first word news with jessica summers. jessica: the trump administration says is moving ahead on a trade do with mexico and will not wait for canada. trey representative robert lighthizer said the u.s. has not been at to bridge the gap with canada on dairy and assistance disputes. the central bank governor of argentina has quit just three months into the job. he resigned the day after the president set a new deal with the imf would require a new approach to monetary policy. he cited personal issues as the reason for his departure. he was immediately route replaced by the deputy economy minister. the peso fell further on the news.

cap social media companies have committed to new measures a new technologies to fight fake news in europe. google, facebook, twitter and others will present a new code of conduct to the european emission later wednesday. follows months of pressure from the u.s. and europe over whether this information to influence the u.s. presidential election and the brexit vote. ftse russell is said to be made to announce the inclusion of chinese a-shares this week. sources tell bloomberg the news could come on thursday and that beijing has been informed feet is not went -- not known when the shares will be included. the shanghai stock exchange says ftse will hold a news conference on thursday to give more details. 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 jessica summers. this is bloomberg. indi: we saw a mixed teacher u.s. markets, the dow and s&p 500 lower but the nasdaq did maintain some gains. let's see how everything is translating in the asian markets. we have futures edging higher while u.s. and e.u. futures are looking little change. in wellington, stocks are trading flat. when it comes to japanese stocks, a seven-day rally helped raise your to date losses but the yen is little changed. as we learned that the economy on tradehas a greek strategy basics. yet to learn details regarding whether or not there might be bilateral trade talks between autowo nations and if

tariffs will be taken off the table. checking in on wti because we have new york crude set for the first drop in four days, i'll buy .5% after the u.s. industry report showed us price increase in stockpiles ahead of official government data due on wednesday. this would be the first increase since early august in that could loosen after the big jump at the start of the week who take any year to date you on brett, trading around 2014 highs even know it is back below 80 two as the market considers the impact of the iran sanctions and opec stand on the matter. highlight what one analyst had to say when it comes to donald trump's the yuan assembly. saying it could have a meaningful impact on the bull market is u.s. output would not only increase but could be sold at a competitive price which would then lower prices.

goldman sachs also throwing cold water on the talk of $100 oil, saying it would need to see a meaningful break to the upside and production from other opec suppliers and russia could offset iran losses. staying stabilized two-year in. so much for you that. let's look at how all this plays out here in asia. had this presumably positive news that the economy minister of japan said we can expect more details in a broadly positive direction when it comes to a trade do with the u.s.. that has to support the rally we are seeing in japanese equities. >> that's right. japan is probably turning out to be one of the bright spots in asia. i think investors are making up to the fact that we got some pretty strong fundamentals and it's probably been overlooked

amid the trade rhetoric we have seen. the topix erase that loss. some of the fundamentals, you have a weaker yen, trading at the lowest since january. you have ongoing corporate earnings growth as well as pretty solid gdp growth in japan. we do have these hopes that japanese automakers are probably going to avoid some of the tariffs from the u.s.. you have expansive fiscal and monetary policy from the doj and you have the political uncertainty around shinzo abe that has been set aside. we may see this rally in japanese stocks extend. haidi: and kangaroo bonds have got a little bit of bounds. >> yes, they have. we've had at&t as well as some offshore banks selling

australian dollar denominated bonds. heathrow airports is also looking to sell in australia. the reason for this is fairly technical. to show that.t cross currency basis swaps have become more attractive which means it has made it cheaper to borrow in australia and more lucrative to exchange australian dollars for currencies. that has helped the kangaroo bond market sales increase 6% this year. the question is, will this continue? what we have seen with the increase in bond sales is that the software could has been squeezed, which is started to make it more expensive. jpmorgan asset management is saying it may not go on for much longer. haidi: thank you so much for that. check out our library, some the chart you just saw their on the bloomberg terminal. trump stokingnt

trade tensions again at the yuan general assembly, and china is taking advantage of the u.s.. the dispute is exploiting and i spoke with one ceo to get his take on the impact for airlines around the world. >> the trade an area of concern for airlines because we are open to trade and open to passengers, so we are worried about the continuance of the trade barrier and trade war on passenger and cargo traffic. up to now, we have not been able to measure the influence of these trade wars on cargo flows. there are other factors that are influenced on cargo traffic that have been more significant than the impact of trade war. >> car parts and semiconductors are usually shipped by air, those made in china.

so we are seeing more tariffs come into play. what is the outlook for air cargo traffic? >> it could impact the air cargo traffic between china and the u.s.. perhaps you know that the -- car partsopper that are imported by the u.s. from made in mexico and canada. on that particular category of goods, the influence should be limited. semiconductors, it could be more significant because a significant part of them are made in asia and china and imported into the u.s.. >> how is the uncertainty affecting passenger demand, whether business travel or tourism? know, these type of measures have an -- doesn't impact on trade physically but

psychologically, by creating more uncertainty, by slowing down the investment project,, by increasing the risk of uncertainty. riskyou're presenting more , it has an impact on business travel because people do not business develop their or sign contracts or to invest in new projects. the main impact, if it happens, should be on the business class passengers. but that represents quite a significant part of airline revenues and airline profit. >> oil prices are also on the rise. how big and impact this is having on airlines profitability? >> but significant. the oil price has almost doubled in 18 months or 20 months. now it is above $80 a barrel and

partpresents a significant of our costs. roughly between 28-30% of the cost of an airline. it has impacted the profitability of the airlines, particularly in some parts of the world, because in many parts of the world, you have had a squeeze between the increasing oil price and the depreciation of the local currency compared to the u.s. dollar. on the cost of the airlines, they're mainly labeled in u.s. dollars. in many parts of the world like sufferinglines are due to the increasing oil price and also depreciation of the local currency compared to the u.s. dollar. >> when can we see this being pushed onto consumers? hashe increase in oil price not been passed on totally or

partially to the consumer. it's a decision each airline is making. it is a commercial decision. we have no impact or influence on that. usually it is a movement that is initiated by some companies and the others are following, knowing that when you do that, it's under strict control of many governments, and for good reason, because the competition has to be maintained. for the moment, we haven't seen significant increased fares due to the rise in oil price. coming up, the fed's tightening cycle continues, but could there be a pullback coming? views withhares his us next. this is bloomberg. ♪

the federal reserve has started a two-day meeting with investors convinced it were raised its key rate and signal a fourth hike this year. could anything surprise the markets? kathleen hays is here with the preview. so where is the trauma in this fed meeting? kathleen: the consensus seems to be that there is a little bit of question about how many more rate hikes this year. i want to show you this chart because it shows a couple of interesting things. the yellow line along the bottom is expectations for two more rate hikes this year. when you look at the top one, the white line, this is showing you the expectations that we will get two more. that's what the market is looking for next are. one thing i want to point out, look back at the middle of last year and see have both these lines rose.

a trade war, we have a tax cut, consumer confidence at an 18 your high, and unemployment is low. for all these reasons, investors say we get two more this year, two more next are, but the big question is, the fed is looking for three, at least that was there last consensus forecast. who will win the battle? let's look at another chart. this gives us a sense of the dove versus the hall. these are the voting members -- .he dove versus the hawk there is a loan dove at this -- lone dove at this point. influentiald is an member of the board of governors and she was very dovish. she went more to the hawkish camp. she sees the neutral rate where the fed doesn't boost the

economy or so down with rate hikes at something like over 3%. john williams, now very influential, the president of are mostork fed, hawkish of all, esther george. i would like to add that if we include the fed nonvoters, and remember, this is consensus driven fed, you have three more s, so you have maybe a different look. this is what is so interesting, when they finished that meeting and give us their policy statement decision, will the hawks the pushing for more rate hikes or maybe the doves are centrex will say to is enough.

asian central banks due out this week with their monetary policy. we're just getting some trade numbers through from new zealand. the trade balance for august was a great miss on expectations. it's a deficit of $1.48 billion, missing expectations for $925 million. august in the month of shy of expectations, just over $4 billion. $4.4 billion is what the market was looking for. less matching expectations for august. tot takes the trade deficit august at $4.8 billion mean deficit. we are seeing that decline in the kiwi dollar which had started to fall after comments from that are being governors saying the tricky thing with re-inflation is how to get it up

and not how to get it down. done dealtially a that the federal time after's latest policy meeting. hawkish and dovish cans are forming within the central bank. but jays are dominating powell being seen on the dovish side. >> that's right. have two camps that are forming. one campus in favor of a pause in terms of rate hikes. -- one camp is in favor of a pause. an environment of rising trade tensions as we've seen over the past few days with rising trade tensions between the u.s. and china. there is a growing hawkish camp that is in favor of faster tightening. the interesting shift has been implemented, in the recent speech by governor brainerd that had more of that hawkish lien in terms of fed policy.

i want to get your views on the impact of oil prices. we've seen the surgeon oil price on the back of intensifying sanctions as well as supply and demand side issues as well. how does it impact inflation rate evens? >> what's important for the fed is how core inflation is evolving. we've not seen a breakout in core inflation. we're seeing gradual pressure upward and wage growth gradually firm, as exemplified by the latest employment report. we're not seen a breakout in core inflation. not to react overly aggressively to any shocks that are transitory. i don't necessarily think higher energy prices will lift the fed expectation in terms of rate hikes. what will be more important is what happens on the trade front. if there is an increase in

uncertainty or tensions between the u.s. and china in particular, how does the fed ofct to that type stagflationary shock? >> what happens when you already have tariffs on billions of dollars of goods. what happens to inflation and economic growth forecast for the u.s. economy? >> that's a big question. trump was clear that these tariffs are going to be staggered. first there is a 10% tariff on $200 billion of imports from china. to 25% on january 1. if china retaliates, which it has said it will do, then you get a further line of tariffs. i think that will be negative for growth what push-up inflation temporarily, which makes for a dilemma at the fed. does the fed react to higher inflation, or to lower growth? our feeling is that it will react to lower growth first because that will be the priority.

it's likely to pull down inflation. over time the inflationary shock will be transitory and we expect the growth effect to dominate to the downside, which is a big risk for the u.s. economy. shery: has the behavior of the u.s. dollar per packs to -- perplexed you as it has? many as you see 10 year yield starting to creep higher. >> i think recently, yes. we've seen a lot of volatility in the dollar, but to keep things in perspective, the u.s. dollar strengthens on to basics which are fundamentals. you've had the u.s. economy outpacing the rest of the world u.s. growth being stronger than europe where you saw significant slowdowns since the start of the year. much stronger than emerging markets, which have been struggling in recent months. and you see the fed continuing to raise rates and tight monetary policy while most of the other central banks around , bank of japan,

people's bank of china, still either loosening or not tightening monetary policy. and monetarytals policy differentials do favor of stronger dollar. that will remain in place for the near term at least. in the longer run, the widening trade deficit and fiscal deficit in the u.s. would probably way down on the dollar. many areas have steepen but only marginally. this chart shows that yield curve flattening. it's an inversion -- is an inversion in affable, and what does that imply? >> yield curve inversion is very possible. you can have this has missed our to see the long-term growth prospects start to diminish and long-term rates fall. as the fed continues to tighten, it should put upward pressure on short-term rates. while the yield curve is a -- an important signal, is not

necessarily a guarantee that you will get a recession. it has a lag in terms of information. it's one of the signals we have to pay close attention to, but it's not the only one. isbroad terms, the economy still quite strong but were start to see more headwinds forming with restrictions on the trade front. shery: great to have you with us, greg. .e are back in two this is bloomberg. ♪

shery: welcome back. haidi: you're watching "bloomberg daybreak: australia." .hat's about it this morning trading in new zealand is underway. we had quite a mess when it comes to trade numbers out for the month of august, causing continued decline when it comes to the kiwi dollar.

we're going into the start of trading in sydney am a looking there lackluster session as well. a pretty flat session when it dollar, trading in kiwi the comment about the challenge being getting inflation up and governor,rom the rbnz moving the kiwi dollar to the downside there as well. and a lack of traction for the aussie dollar. shery: and we are headed into the second day of the fed meeting expecting a 25 basis point hike. we will discuss all this and the u.s. economy with a former fed official and now, and advisers vice-chairman. he says that the fed will soon remove the statement about policy being accommodated and we will ask him what that would imply. and all of the implications of what a trade war and tariffs will do to inflation

expectations and the dollar as well. that's about it for "bloomberg daybreak: australia." we'll sic around for the next two hours with all the major market opens. this is bloomberg. ♪

haidi: i'm haidi stroud-watts in sydney. asia's major markets are an hour away from the open. shery: from bloomberg's global headquarters in new york i'm shery ahn. >> in hong kong, welcome to "daybreak asia." haidi: our top stories this wednesday, president trump sparks derision and denunciation as he addresses the uts, iran says he's committing economic terrorism. asia pacific features point to a mixed session ahead. japan is on track to extend the rally that's taken the topics to near an eight-month