>> welcome to bloomberg australia. world headquarters in new york. >> and i'm in hong kong. counting down to asian opens. >> the top stories we're overing in the next hour, technology pulling stocks lower the dollar reached a two-week lengthening list of concerns. bank of america is among the osers as investment arm earnings misses are paying the

price for responsible growth. and president trump floats the of rogue killers as they search for answers in saudi arabia. > markets close in the first trading day of the session in mentioned, haidi the s&p 500 was down .6 of 1%. led the losses with the nasdaq falling .9 of 1%. energy sector was also under pressure as we saw fluctuation increasing tensions between saudi arabia and the u.s. over journalist khasoggi. we saw pressure on 10-year today and the u.s. dollar retreating to a two-week low. let's see how this will asia.late into here is sophie. >> asian futures are hinting at start.ed you look at trading in chicago, we are seeing losses extend here in tokyo, we're watching

in two k buy the most years, this amid the division saudi arabia. this has pushed it back below 12 indicative of that move to safe havenz which has helped see late, gain ground as of neither july highs. metals under pressure. and his team at goldman sachs. getting a pulse check on some of the metal producers, the rio tinto reporting a 5% rop in third-quarter iron shipments and cut its aluminum target. from australia, we are getting for october es later this morning. we have inflation data direct and we na for september also had this morning, new zealand reporting third-quarter estimates and t kiwi has helped push the

towards a two-year high. stocks under pressure off by a of a percent, haidi. news with t you to jessica. >> the u.s. budget deficit grew $780 billion under in donald trump's full fiscal year as president. cuts and higher spending made it the biggest shortfall since 2012. gap for the 12 months through september, the 17% wider year he same period a earlier. spending rose more than 3% while revenue gained .4 of 1%. citigroup believes china no to the elieves the yuan dollar as a psychological red line that must be defended. accepted the currency may rise or fall and the longer aapplies. of pboc has set a series

weaker fixes to allow the further. to supplied italy's coalition has pulled together a last-minute budget fulfill allow it to costly election pledges. it may threaten a confrontation union.he european tuesday is the deadline day to 2019 t budgets for fiscal and brussels had warned rome about raising the deficit beyond e.u. rules. that sparked a sellout in a at allan bonds. north and south korea continue their friendship, generating plans for railroad links. engagement between the two neighbors and the u.s. lags significantly behind the north and south easing post-war rivalry. lobal news 24 hours a day on air and on twitter powered by more than 2,700 journalists and 120 sts in more than

ountries, i'm jessica summers, this is bloomberg. >> breaking news at the moment. microsoft co-founder and founder paul allen has died. he was 65 years old. e was a co-founder of microsoft, paul allen now we're hearing that he has passed away. to a statement from his family. paul allen, the vulcan chairman founder has died at the age of 65 years old. just releasing a statement saying that he has passed away. as we getmore details them. at the ke a closer look u.s. market close stocks failing to hold on to brief gains in the s&p session, the dow and nasdaq closing lowers. latest, an has the investors are trying to gauge whether this was a healthy would correction or it

last longer. >> we still don't have the answer. e fail to see the follow-through of the healthy rebound we saw on friday. tensions, eopolitical hose are weighing in on tech, weighing in on nasdaq and the rest of the stock market. was the t we saw here nasdaq 100 with a heavy of tech stocks. the broadest measure of the gains, the show some dollar as mentioned at a two-week low. let's take a look at the bloomberg. key question even though we slip into s&p 500 the red was whether it held the did.day moving average, it so the question is tech finding the bottom where it bounces off is it just taking a bearish pause in the selloff, a remains on the market. e did see several times the

various indexes pop into the green, they were unable to hold those gains. movers, ok at the big the top two very big moves on a in the industrial sector that actually propped up the sector.al sears what many were expecting filing of ekend, the bankruptcy and that is an end of an era for a very storied impact nt store, had an on some of the other retailers see p. e about to hospital petroleum down in a big needless to say, the weed stocks, many of them were of wednesday tion when canada will legalize marijuana. look quickly at stocks, netflix is reporting this week. are looking to that report o see if it's a barometer for valuations of this group as it goes very much thought to be the the momentum of this bull

run in tech stocks is expected to go. have the answer. retail sales today, the budget deficit, the first full fiscal year for the trump dministration of course and looking ahead to housing stocks on wednesday. a that definitely will be key piece of data. in items of the september retail sales data, even though there a bit of a game, there was a disappointment and that impacted sector, not to mention the sears bankruptcy which also was a depressive factor. see some big names, abercrombie and kohl's, l-mart and national stores all down. have this housing starts data and sales of existing homes, hat was closely watched by the market in terms of what they're xpecting, weak results,

especially with existing home sales and that anticipation of being data is already seen in weaker housing stocks, a red flag of what's ahead and for the he suppliers housing industry such as flooring and paint companies sherwin williams. >> in new york for us. a team of investigators has saudi consulate in istanbul for what turkish joint ls say the inspection of the building where saudi jamal khasoggi was seen weeks ago. cnn cites two sources who say that the saudis will acknowledge died from an interrogation that went wrong. on monday president trump roposed a different theory as to what happened. >> the king firmly denied any it.wledge of he didn't really know, maybe, i don't want to get into his mind, but it sounded to me like this killers, e been rogue who knows. >> joining us from washington, we have any idea what led

president trump to suggest this theory? well, this came immediately after a 20-minute conversation saudi king with trump. it's not too far away from the as you mentioned, there was a report that the audis plan to blame it on an interrogation gone wrong, whether you call that a rogue i guess subject to some interpretation. very firm thatas as he has been in other king ions to emphasize salman's denials, he denied it crownly and also that the prince had no knowledge of the journalist jamal khasoggi. so there is still more to be said. sort of readout from that conversation, but we what the king ow told donald trump and what they discussed.

>> the president is sending mike pompeo to saudi arabia is what is i guess hoped to be gained from this visit? sure, it's for going to send a strong signal of the potential damage to the u.s.-saudi relationship. the president has been resisting coming down too hard on the reaction from lawmakers and others in the u.s. strong and we're told that the trump saudi tration views the denial of my knowledge as untenable, that they can't go this.h with so pompeo will be delivering that message along with the fact of there are now members congress from both parties what have begun calling for a halt to sales to saudi arabia and perhaps some other sanctions or some of this is all cleared up. on e is a lot of pressure the u.s. to put pressure on the saudis over this. joe, we're using that the

.s. budget deficit swelled to $780 billion in president trump's first fiscal year, the 2012, huge ce numbers, but does anyone in washington care? the fiscal deficit, the deficit hawks seem to be a dying breed at the moment. >> dying or dead. this has landed pretty much with a thud in washington, of course, really a surprise to anyone this fits within the made when that were the tax cut was passed earlier extrath the spending, the spending on defense and some domestic problems that went the past ngress over year. the projection is that going forward, there is going to be a trillion dollar deficit in the next fiscal year, there are some issues to be dealt with, now, trump's economic advisor has said that president plans to unveil some sort of measures to deal with the deficit, but there have no specifics.

his budget director today said a "blunt eficit is warning" to congress about spending, but, in fact, there is of appetite for the tough political choices that would have to be made on to bring it in line. he talking point on the tax cuts was that it would spur enough u.s. growth to make up ome of that difference and so far that has not happened as we're seeing with this number. far it doesn't seem to be a key issue for voters headed elections, dterm either. joe, thank you so much. till ahead on day break australia, we look at the complex relationship between australia. we ask australia china business ounsel how new prime minister scott morrison will affect trade and business. > later this hour, we'll be speaking to a guest who says the u.s. has more to lose than china if this trade dispute escalates. this is bloomberg.

>> in sidney. >> and in new york. ou're watching day break australia. china is making plan for a worst yuan.scenario for the the mainland economy remains healthy especially on the side.mer andy is investment strategy legitimate and capital from sant and joins us francisco. great to have you with us. thank you. so if the chinese economy is healthy, does this mean that the u.s. administration has less it comes to fighting them on a trade war? andy: yes, i think that's a being made mistake in washington, first underestimating the health of he chinese economy and overestimating the importance that exports to the united tates play in the u.s. economy -- the chinese economy.

shery: we know that it's mostly consumption, 2/3 of chinese economic growth and gdp comes from consumption. if trade continues, won't it sentiment? >> i think it's a mistake to use view the chinese economy as soft. and therefore, i think also u.s. e the impact on the economy is going to be bigger than many people think, we're to g to see a resolution this dispute in the next few quarters. hat could be a boost to sentiment in china. shery: so 70yuan per dollar is line at the moment, is that going on in policymakers in china where they're thinking line that we have to defend? >> chinese economists i speak to to downplay the importance of seven. i think they're right. i'm not sure that the government is doing to put a line in the there. what i think they've

acknowledged over the last few is that the direction is determined entirely by the strength or weakness of the dollar. we have a strong dollar now. you have a weaker r&b. they're continuing to intervene to prevent it from falling from in one n 5 or 6% calendar year. it's tougher this year. they're going to continue to have seen so s we far, it doesn't weaken as much currencies.r asian shery: andy, does a political shake-up in the u.s. following the midterms depending obviously are, does results that make a more coordinated stratton china less likely or more likely? i'm not sure it's going to make much difference because i that the uming democrats take control of the house of representatives, i oubt year going to see a much different approach, especially given that trade is being really run by president trump himself so my view is that since we've seen a deal on nafta. deal with the e.u. and south korea, the

president is in dealing making mode. to talk that way about china. i think that eventually we'll trump and xi.ween shery: is it difficult to see what that deal looks like? it's been difficult to see what the trump administration and the hawkish voices actually want from china insofar as what we know the demands are, a lot of them are massive structural change to the economy have a hard would time being able to effectively deliver? and i think it's clear that there are some members of he trump administration who believe that china represents a threat to the u.s.'s future and they don't really want a deal. they want to try and disengage the u.s. economy from china and china's rise.pt i think there are also others and so far it looks like other nt trump is in the camp who realize that that will also cause significant damage to economy, to u.s. equity markets and they're just looking

for a better deal, more market access, better protection for i.p.r. for me, the key is recognizing china gagement with through the multilateral organizations that the u.s. w.t.o. created such as actually generated a lot of good benefits for our american companies, workers, and families and continuing to use that structure is likely, more likely confrontation to generate progress in the future. shery: given this environment, emerging markets broadly take a hit, but now we have a bloomberg survey showing emerging market bulls may have returned. e have seen from 26 strategists, investors and raders that latin america eclipsed europe and africa, the best prospects for bonds while top for at the equities. are you as optimistic about broadly kets in asia including china? >> i'll focus on china, there i disconnect e a big where on the one hand, we got

weak sentiment and weak equities performance. hand, we got really strong earnings growth, larger firms, earnings up 16% on top of 21% base from last look at the companies that matthews asia focused on consumer services, it's up 28%, valuations have come down. disconnect is disconnect is likely to narrow before too long. shery: there is a lot of bargain hunting opportunities at the moment. is there a concern if the trade war worsens, it's going in a than other rection central banks around the world, you do still have that momentum emerging market assets? >> well, look, if we're really an all-out go into trade war, which is not where we are today in my view between the biggest trading countries in the world, the united states and china, that's going to have an everybody. i think because of the scale of that impact, the likelihood is

headed, t where we're we're seeing a dispute just like we saw between washington and canada and the e.u. and i'm hoping that calmer heads more ing to prevail, sensible approach is going to be to try to resolve the on.erences and move shery: andy, very quickly, after the selloff from last what is your takeaway? >> we need to be prepared with equities for nese a continuing period of pessimism the trade it to see deficit issues, the trade with the ort the out united states and we're waiting to see the chinese government clean up some of the unintended their derisking of the financial system. growth is earnings and valuations are, i think over is longer term, opportunity there. shery: thank you so much, andy, of san francisco. coming up, bank of america's

slipping, the growing competition among the biggest u.s. banks. crunching those numbers next. this is bloomberg.

haidi: i'm haidi in sidney. shery in new york. the biggest of the four u.s. banks reporting third quarter earnings. fell nearly 2%, the second worst lag guardian the 24 company k.w. bank index, that is beating estimates. details.ined with the so what happened? >> well, if your own c.f.o. said better, how e done does that make you feel in your stomach? robably a little bit apprehensive, right? that is what he told reporters on that earnings call earlier course, we hen, of saw the shares fall. he also said, you know, i come banking nvestment

background. we got great investment bankers, et's go ahead and pull up our first chart. the investment banking division actually didn't do well at all. lowest bar you see falling in the middle of your screen down 18% here. bank of america trailing all of its rivals, citigroup as well as only that, the orange bar to the left of your screen, the smaller one, that's revenue.ng that was also falling short of estimates. now, the reason for this, well, things.e a couple one was the unexpected -- lose ts are expected to share to rivals in advisory fees. what was unexpected was that also posted a 29% decline in debt underwriting revenue. degree of this, it was almost twice the drop that they actually estimated there. there was some good news, i do ave to say, haidi, but it just wasn't enough. 25% jump, that's what we're seeing in terms of it consumer

along withtax profit more progress on the firm's cost cutting efforts. n one side, it's all of the negative news, on the other side, it was a small bit of positive news, even despite beating those estimates. the season ding out tomorrow, what are you expecting? >> for both of these, it is the that we have been looking at in terms of interest of loan s, in terms growth and possible macroglobal risks with the u.s.-china trade war. with morgan stanley, we're looking at earnings rising 15% there and with goldman sachs, e.p.s. could probably jump 7%. haidi: thank you so that in new york. a look at the last of the new york bank earnings out this week. on ust a moment, focusing the slowdown in china as we run through the numbers. this is bloomberg.

haidi: it is mine: 30 a.m. in sydney, -- 9:30 a.m. and sydney. look at futures, which are exactly unchanged at the moment. indicated downside, about .1% when trading gets underway. are saying the situation when it comes to selloff in sydney is looking done. we are in oversold territory and we are looking at a pretty bright earnings outlook for some companies listed in sydney. i am haidi stroud-watts in sydney. shery: i am shery ahn. you are watching "daybreak australia "daybreak australia -- you are watching "daybreak australia." jessica: cnn's as saudi arabia

is preparing to admit that missing journalist jamal khashoggi was killed and an interrogation that went wrong. did notation have high-level clearance. president trump says he was assured that saudi arabia had no official involvement in his disappearance. disclosed the idea of rogue killers. pres. trump: the king denied any knowledge of it. he did not really know. i do not want to get into his mind. it sounded to me like maybe they could have been rogue killers. who knows. jessica: softbank is becoming collateral damage in the affair, battered by the global selloff. shares are being hit by links to saudi arabia. the kingdom is a major investor in the vision fund and that relationship is worrying some analysts. softbank lost $20 billion in market cap.

that is at the same time that the saudi writer disappeared. u.s. retail sales are less than forecast. it is overshadowed by a drop in restaurant receipts. the value of overall sales rose .1% for a second month compared with the median forecast of 8.6% gain. it fell 2%, the most since 2016. the rupiah pared losses. southeast asia asia's biggest economy reported a surplus of $227 million in september. the median estimate was for a shortfall of $.5 billion. mr. plus comes after official efforts to reverse widening current account deficit and stabilize the currency. 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 jessica summers. this is bloomberg. haidi: rio tinto iron ore output missed estimates. it revised its forecast for the full year. david stringer has the details for us. we have had reduction data out ironthe top to iron -- two ore producers. do we have a good idea as to what the broad outlook for supply is like? haidi.absolutely, we really do. as we heard late monday from brazil, the top iron ore exporter, we heard from rio tinto, the number two, and what they both confirmed is despite the fluctuations in the last three months, the big picture story is they are on track for record annual shipments, both expected to increase production

and cargo through 2018, adding to supply in the market. it is the further demonstration inthe really big suppliers this sector, extending market share, and extending that dominance. fore are forecasts australia and brazil to continue to squeeze marginal players. a weakerough they had three-month in the nine-month this year, they are up 4% in the same level period last year and on track to meet the upper guidance range around -- there is more supply coming. haidi: in terms of the demand-side outlook from china, there does seem to be not a great deal of consensus on that. david: that's right. there is certainly a range of opinions in the market as to where things go for china. will depend on that response to the u.s. trade tensions and the extent to which

the chinese and provincial governments boost spending on infrastructure. obviously, much more spend on infrastructure projects. we heard from australian government. they said they think chinese steel demand and iron ore demand will peak this year and start to decline. that is rejected by the big iron ore producers. bhp saying they do not see things that way. they are continuing to put more supply into the system. shery: now that we are on track to record in will shipments, what will that do to prices? are iron ore prices responding so far? david: i guess you might expect withto decline, i guess, more supply coming to the system, but quite the opposite. we have seen iron ore's benchmark prices jumped above the $70 per ton level for the first time since march.

certainly an indication that there is more strength in the market and that maybe demand in the short-term is stronger than it has been for other periods this year. iron ore prices had a pretty doldrums, andthe now, they are rising again. we are seeing that material sort of closing in on the $100 time market, and it really shows that they are trying to meet the environmental laws. shery: thank you so much, david stringer. we continue to see that selloff in the u.s.. leading the declines. here is sophie. to go beforef-hour trading kicks off in sydney. i want to draw attention to what has been happening for australia talks. recent losses have kicked the asx 200 into oversold

territory which could hint at a rebound for the benchmark valuations at a three-year low. lookingder market is cheap. given what has been driving the selloff, we have financial stocks driving the brunt of that. they closed at a more than two-year low on monday. she sees more pain ahead for banks as well as minors. get theinted out we did production updates from the likes of rio tinto and we have a few other minors also. whitehaven, sarasin. let's see how that might be shaping up sentiment for aussie stocks. pulling up the futures, we could be looking at a muted session for the session in australia. futures looking unchanged. kiwi stocks already under pressure, falling by .3%. the kiwi dollar has jumped to a two-week high on the back of the got this morning.

more losses anticipated for japanese and korean shares. the yen back below 112. softbank has been under pressure. we are keeping an i think on the likes of asian luxury players. a menswear maker turned cautious in china. a decline inn consumption so the company is planning a more conservative budget for investment in china next year, so keeping an eye on what could be exposed to the story. pressure on those consumption names. consumer luxury names as well. sophie kamaruddin in hong kong. breaking news crossing the bloomberg. president trump's lawyer says they have dismissed the stormy daniels lawsuit on the back of lawyers for the president asking a los angeles federal judge a couple of months ago to throw filed by stormy

daniels. the argument was about the alleged 2016 tryst in her book not was published that it longer makes sense for them to keep fighting in court over this $130,000 hush agreement she signed prior to the 2016 election. president trump's lawyer saying the judge has dismissed the stormy daniels lawsuit. coming up next, china is australia's largest trading partner, but relations have rarely been more strain. what it may take to save this economic relationship. this is bloomberg. ♪

shery: welcome back. i am shery on in new york -- shery ahn in new york. haidi: i am haidi stroud-watts. china has issued a warning to australia.

they say australia should not be led by the nose by washington. let's look at the difficult situation canberra finds itself in. the former premier of the state of victoria, john. we were coming through the new nafta agreement between the u.s., mexico, and canada. there are specific laws that to prevent these trading partners from striking up -- with china. do you think they will need to choose between the traditional alliance and its biggest trading partner? john: there are certainly some changes in the relationship and you often see this when you get this shift in global economic power. we are seeing that at the moment with the united states to china, but from australia's perspective, we saw in the free trade agreement with china two years ago, we have access to

that market. haidi: do you believe that relations between beijing and canberra have been ever so strained lately because of these geopolitical concerns, activities in the south china sea, and the trade war between washington and beijing? do you think these are dire times when it comes to the relationship australia has with china? john: relationships with any country will have highs and lows. frost really, we went through the high point two years ago with the signing of chafta. the relationship with the united states. but the business-to-business relationship with china remains extraordinarily strong. is 24%-way trade, china of the total trade in australia. so from that point of view, this relationship remains strong. reset of theial

relationship with former prime woulder turnbull, and we say at the business council, for the australian government, there are two big chinese initiatives in the next few years which we would argue australia should be supporting. the first of those is the china international import in november.hai and the second, of course, the belt and road initiative. and from a business perspective, we would say these things would create enormous opportunities for australia and should be embraced by the australian government. haidi: what are the biggest concerns for your membership? john: well, there were certainly concerns six to nine months ago that the government to government relationship tween australia and china had become fractured, that it had broken

down. the business-to-business relationship remained very strong. people to people relationship remained very strong. china is our biggest source of tourists, international students. there are 1.4 million chinese australians. the biggest source of migrants of any group to australia. business-to-business, people to people, the relationship was strong. we called for a reset. i have said,as under former prime minister turnbull, and i think the embracing by the australian government of the china inernational import expo november, and the closer embrace in terms of belt and road initiative, would certainly strengthen the relationship considerably. shery: in the u.s., we are seeing congress strengthening -- building protections against countries that threaten u.s. ip. could we see this become a global trend and something

chinese firms need to deal with when it comes to intellectual property around the world? i think what we are already seeing is the shift around the world. we are seeing the u.s. unambiguously tighten up in terms of the relationships with ip, in termsms of of research and development. that is already occurring. the best way to fix this would u.s. tohina and the come to a sensible agreement about these things, about issues like cybersecurity, about r&d, about the sharing of information. i'd not think, for the world, you know, the world will be well served by the banning of chinese companies, and so, recent decisions in australia, for example, to essentially ban all chinese companies for the rollout of 5g will not be in the australian

businesses or consumers. it would be a less competitive market. if you go to issues like huawei, it is the biggest manufacturer in the world, number two in terms of smartphones, surpassing apple. it was one of the world's biggest spenders in research and development. we haveise believe -- always believed the world would be a better and more prosperous space is barriers to trade and investment are reduced, so we would like to see sensible solutions to this trade issue and ip issue between the u.s. and china. banning companies and banning technologies is probably not going to serve the long-term interests of the world well. shery: are you still a director at huawei technologies? how challenging has it become to advise chinese firms when you

see this very tense environment? in australia. i am an australian director of huawei, one of three australians on the board. we have grown in the last six of $250om a turnover million per year to something like $750 million per year, so we are obviously disappointed as a company that we cannot compete in the 5g area, but nevertheless, as i have mentioned, we are doing very well with consumer goods. we are doing good with pillow communications equipment. we continue to be embraced by companies looking for our enterprise solutions. i think, as somebody who, in my political career, federal and state has always supported for your trade -- free r trade.

the world will be prosperous and better off if barriers to trade are reduced. that companies are banned from participating in an environment that would create more innovation and better value for money. these are matters for government to work out. they have to take into account national security and other considerations, and they will come to the decision as they see fit. haidi: it's very topical. in the last fortnight or so, bloomberg had broken the blockbuster story about an allegation of chinese hardware hacking into hardware that ended up at the likes of apple and amazon. i should note that the companies involved have denied all of this, but it points to the issue of the trust deficit. how difficult is it for any of the chinese tech companies or any of the big tech names to navigate around that in the global expansion plan? yeah, in relation to your

report, and you have correctly pointed out, the conclusions of that report were in fatah clique rejected -- emphatically rejected by a range of companies. they said they were completely untrue. there are only two countries in the world where the chinese companies are not allowed to participate in 5g, and that is australia and the united states. in every other part of the world, this is not an issue. it's not an issue in singapore, the united kingdom, france, italy, or other parts of the world. my view would be that it would be a much preferable solution if the two countries, the two presidents, could come to a sensible agreement about these , about about i.t. intellectual property, about cybersecurity, so that the countries can work harmoniously the world and and

businesses and consumers can get the benefit of the best technology at the best prices. and so, you know, i never thought that banning things and putting up barriers to trade is going to provide the long-term solutions that the world is looking for. wentworth has an election this weekend. we could have a hung parliament. we will be heading to the polls next year. is it impossible to have a cohesive china strategy given the turnover of government we have here? john: i think it is difficult. we sawthe, i think, -- 12 months ago in the federal parliament, we did see china becoming a political football between the two major political parties. intohas moved i think well the background now. we are seeing more mature approach from both political

parties. excuse me. and hopefully, that can continue into the future. >> thank you so much for joining us. john brumby, former victorian premier, joining us out of melbourne. 20 more to come. y more to come. this is "daybreak australia." ♪

haidi: i am haidi stroud-watts here in sydney. shery: i am shery ahn in new york. you are watching "daybreak australia." the death of microsoft cofounder paul allen. he started microsoft with bill gates and used the fortune he made to invest in professional sports teams, cable tv, and real estate. he was 65. , whong us now is dena bass covers microsoft. so first of all, what was his legacy here? dena: when you look at paul allen's work, he together with

bill gates really created the computer software industry as we know it. they created a situation where we have hundreds of billions of dollars of software sales for smaller, more affordable computers on desktops and in offices. in the 1970's, computers were very expensive, very rare, and software was complex. they saw this moment where computers were starting to become smaller and more affordable, and realized there was a need for software to run computers that a number of people could use. they could take advantage of that when they founded microsoft. shery: post microsoft, what would be a summary of what he has done since then and his legacy after what he really is best known for? dina: sure, he has had a diverse array of interests in investments. he lost billions of dollars investing and you will tv and other technology companies. he owns a couple of sports

teams. his most recent huge success has been real estate in the seattle area. almost ad for himself second fortune making billions of dollars by buying up real estate, a lot of which he wound up fashioning into a headquarters for amazon. the land in seattle that amazon sits on was almost all developed by a the vulcan vehicle -- by molded. he is involved quite a bit in invironmentalism, protecting the oceans, endangered species, brain research, artificial intelligence. hehad a wide array of things donated money to in a philanthropic capacity. shery: i understand that he cultural institutions, revitalizing parts of the city.

we are getting a lot of reaction from his former colleague, steve ballmer, calling him a bright and inspiring person on twitter. what sort of reactions are we going to expect from the industry? dina: i think it will be a profound sense of loss. paul allen announced he was battling cancer again for the third time in his life, but the statement he put out sounded up beat, sounded-- up like the doctors thought they could take aggressive action and maybe beat it again. i am not sure people were necessarily expecting this. i think he's viewed as a massive pioneer in the industry. >> thank you so much for that. dina bass in seattle with the thest on paul allen, microsoft cofounder, his passing. stormy daniels's lawyer responding to the dismissal of the lawsuit by a judge in los

angeles, saying they will be appealing that dismissal of the definition case and are confident in a reversal upon medfield appeal, so getting more details on that. "daybreak asia" is next. ♪

haidi: a very good morning. i am haidi stroud-watts in sydney, where australian markets just opened for trade. shery: good evening. i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: our top stories this tuesday, asia-pacific markets look set for a muted open after tech dragged wall street again. the dollar hit a two week low. theers are looking ahead to latest inflation numbers. that data should indicate t