>> welcome to "daybreak australia." >> we are counting down to asia's major market open. >> here are the top stories we are covering in the next hour -- the selloff in u.s. stocks rolls on, wiping of gains for the year and the s&p and dow.

treasuries rally on demand for havens. we new housing data stoking anxiety that rising prices might drive on economic growth. on the other side, tesla accelerateswe new housing data g anxiety late trading after posting a profit. the model three is becoming one of america's best sellers. let's get you started with a quick check of the u.s. markets. we saw broad selling across the 2.4% and dow falling the s&p 500 down 3%. the nasdaq injured correction territory following 13% from its august high. it was a mixed bag of corporate ofnings and a lot of anxiety -- over if profit growth is peaking. you can see the volatility gained ground and the vix higher for a second session and above the 25 level. while the treasury rally continues for a second session and we saw yield fall to that

3.1 level while the dollar was also knew the highest this year. let's see how all this will translate into sentiment going into asia. sophie: anxiety is the word as we could be facing another risk obsession. when it comes to japanese futures, overnight, we did see contracts fall between 2% to 3.5%, although we do have some raising their view on japanese equities to positive from neutral. we are waiting on third quarter , andminary gdp numbers from new zealand, we did get a wider than expected trade deficit, the biggest since records began. from australia, we getting updates from the likes of qantas . earlier, we got updates from

northern star and sapphire resources. trades on watching tesla, and among notable names and asia, we have cannon and hyundai motor. haidi: big day ahead. let's dive back into u.s. stocks. no matter how you look at it, it was an ugly day for the bulls. tech sliding into correction territory, investor alarm over peak profits, and new data showing weakness in the housing sector. analystat some of the reactions, nothing fundamentally changed, but it feels like a perfect storm and a lot of ways. >> that analysts said it was literally off the rails. you could not point to anything other than the drip, drip, drip, of negative news. the volatility and the momentum of the volatility -- it was not a mistake. indeed feeling woozy.

at the end of the day, it was it a two-year high. if you look at the snapshot, you are seeing yields were lower in the regular session. you saw treasuries up, gold catching a big. crude oil up on a supply issue, but let's go to earnings stories because we know texas instruments from yesterday, at&t knocking a lot of the confidence out of the market. going to the faang stocks, they took a hit. alphabet report on thursday, as does intel. we look to those for perhaps some positive news. >> we got some positive news when it came to microsoft in terms of beating estimates, but still disappointing news when it comes to cloud services growth. su: it is slowing a bit.

we did get a boost in the stock in terms of numbers. they beat on the software. windows 365 posting robust gains. profit and sales the eating. ford also reporting after hours, and they beat on sales and profit. they dropped their 2020 target. some analysts may make a deal about that. we have tesla also with a report after hours, so there is some momentum in that direction for the bulls going into the thursday trade. haidi: in terms of what we are anticipating from that thursday session, weakness in chip stocks also a fact. they are on track for their worst monthly decline in a decade, and this is, i guess, the structural rebalancing of that industry. su: yeah, let's go to the bloomberg one more time. was under sector that

pressure. texas instruments definitely gave up the warning of weak chip demand, softness ahead. less time we saw the s&p 500 and stocks down at the same time, it was not pretty. that does not augur well. take a look at the stocks down in the session. that explains why intel, which reports during the thursday session, is so heavily anticipated. >> thank you so much. let's dive into tesla reports. we now know why the company brought its earnings reports forward. they made a profit the last quarter, just the third time it has ever done so. with that earnings beat, shares higher in the post-market trading session. remember, that is building off of tuesday's jump. i guess it does help a little bit when you have so much distraction over tweets, the s&p probe, and so forth.

remy: we are putting that aside now because basically, we're looking at the numbers, and it was a beat basically across the board. you look at revenue, earnings, capital expenditure, free cash flow -- i feel like i'm losing my breath -- you look at the numbers on the screen right now. than margins up by more 21% of the s&p 500. beat after beat. tesla was expecting a slight negative, estimate of $.15 for a loss per share. in addition, one other thing of note is the free cash flow. i want to take you to the terminal library. "burn, baby,d burn." you might have seen it come up when we talk about free cash flow. we know tesla has $3 billion of cash on hand, 881 million

dollars in terms of that free cash flow. the estimate was for 200 80 million dollars, so a huge beat. the question is can it be sustained and repeated going into the fourth quarter? about 20oking ahead to minutes from now when that earnings call is going to start with elon musk, but he says theits will be positive in fourth quarter, cash flow will be positive, and he did not make any forecast for the model three except that he should continue to see that rise, but maybe he is reserving that for the earnings call. >> all the good news you have just gone through, but tesla did manage to catch a negative headline today, not for the model three, but the model x. this is coming out of "consumer reports," which is an independent highly regarded magazine which ranks products,

inturns out the model s came below average, which means "consumer reports" is taking away its recommendation. the model three is keeping its recommendation. it has an average rating just out of the annual auto reliability survey. suspension problems as well as issues with the car handled doors apparently. i'm going to make this a little bigger toward the entire global car market. look at what is happening in terms of the car brands. all the ones in the orange are some of the top performers in terms of reliability. five of the top six japanese, and interestingly, i have to say as an american, 11 of the worst 12 were from the united states, so not really great there, but for tesla, it is at least pretty positive. it.e will take let's get you the first word news.

general: law enforcement agencies are investigating apparent explosive devices mailed to barack obama and hillary clinton as well as cnn's offices in new york city. monday, police detonated a pipe bomb at the new york residents of billionaire george soros. president trump call the active horrid -- called the act abhor rent, but some say the president failed to understand the seriousness of attacks on the media. the saudi prince said he would bring jamal khashoggi's killers to court. he denounced the crime but offered no new information about what happened in the saudi consulate in istanbul. >> it is a heinous crime that cannot be justified. today, saudi arabia is carrying legal things to finalize

the investigation, to cooperate with the turkish government and to present the perpetrators to theirurt and take detriment. jenne: the u.k. prime minister has survived a meeting with conservative lawmakers as they expressed loyalty rather than frustration at her brexit plan. she told a committee they must hold their nerve while she pursues a deal with the european union. on's cabinet is deeply split keeping the u.k. in the customs union indefinitely to avoid a hard border with ireland. four days before the brazilian thetion runoff, right-winger is slipping in the polls, although he still holds a commanding lead. the latest survey gives him 57% support, down slightly from 59%. a leftist rival rose from 43% to 41% -- 243% from 41%.

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. haidi: still ahead, in the midst of this earnings season, why is the stock correlation breaking down? as tech takes a massive beating, our next guest is buying. this is bloomberg. ♪

>> welcome back. reaction from a chief market strategist from riverfront investment group who is here with us in our studio.

this selloff seems at time broad . our week in panic territory? >> i do think we are quite in panic territory. yesterday when we rallied up, i thought if we could maintain that momentum today, we could go back to about 2800, but we were not able to keep that momentum today and we closed below where we saw a lot of support at 2700. it's we arenk starting to get a bit of a correction. i would not say it is panic selling. i think if we continue to fall, you will see some support around 2600. for us, it's really around 2590, where we are thinking support is, and that is a place where the market becomes really attractive to us. >> what about tech companies? we saw the nasdaq composite

injure correction territory. this chart showing the premium of tech companies on the s&p 500 narrowing to less than three dollars on every dollar earned in the next year of 2009, that would be the yellow line right there. is there still a secular growth story here? is that still viable at this point? >> we still like growth stocks, but we are really a value shock at heart. we think this is the perfect the when you are getting fleshing out the market right now that we are really going to look for the tech. probably just kind of maintain because you have seen semiconductor really get hit over the last couple of weeks, lead the market up, and we thought we had to be exposed to tech, and that's why we had a broad tech overweight, but overall, we have been pretty

underweight the u.s. for most of the year, and right now, we are still a little underweight equities on the u.s. side, but overall, we continue like equities. >> you look at even some of the stocks over the past couple of years and they are getting hit as well. looking at momentum volatility .itting 18 of-year high basically, investors are holding some of these best-performing stocks. at geopolitics, things go from not so hot to pretty good, where as in the markets, everything goes from torything's perfect everything's terrible. is it irrational? >> i think it is a bit. you start getting a little bit of the herd mentality when you did not have followthrough yesterday, you started seeing

were takingf people companies out and basically shooting them if they did not beat both on the top line and the bottom line. this has been one of those earnings seasons that has been overall a pretty strong earnings season, but i think what we are seeing now is that people are worried about global growth, and global growth seems to be peaking, and i think you can find evidence in that by looking at what is going on with the pmi. today in europe were lower. in the u.s., we had to put -- we had services and manufacturing tick up with it, but it has been more cautious, and you are starting to see things start to roll over a bit. >> as a value investor, did the yourtions you see pique interest at all?

>> when we look at asia, we like japan. we hade one overweight an international right now, and the reason we like it is because then has deemphasized structure, has positive corporate governance now, and you are starting to see them open up their markets to foreigners to come into deal with their demographic issues, so that is a place we will continue to like. cautious when it comes to europe on the international side, mostly because of the issues you have going on in italy at the moment and also with brexit occurring, far as emerging markets is concerned, we closed down or reduced our emerging markets exposure in our shorter times horizon portfolios because of the strong dollar you had, and

you are also seeing interest rates rising here in the u.s. it makes it difficult for emerging markets to repay that debt, especially when you had china slowing as well. emerging markets on the shorter time horizon, if you have a short time horizon, we don't have exposure, but when you look at a longer-term horizon, in those portfolios, we are just neutral. >> when we talk about global growth slowing or concerns about it, when you talk about your europe pmi being so low today, isit, when you talk that going o yen strength because of safe haven demand, and that would undermine japanese equities? it would undermine japanese equities over a longer time, but right now, people are not running to japan as the risk off trade. the risk off trade has been coming back to the u.s. most recently. yen that is 112,

1 13, it is still attractive for japanese exporters. when you think of the third quarter, japanese exporters had forecast a ¥107, and in the third quarter, it averaged 111. we expect you will have decent earnings coming out of japanese companies. >> because the yen was weaker than expected. thanks so much, chief market strategist for riverfront investment group. we have plenty more to come on "daybreak: australia." this is bloomberg. ♪

>> you are watching "daybreak: australia." u.s. law enforcement agencies are investigating suspected pipe bomb's. the fbi says it's possible other

potential disruptive packages have been mailed and is urging the public to be vigilant. president trump says acts or threats of political violence have no place in the united states. >> as we speak, the packages are being inspected by top explosive expertshave no place in the unid states. >> as we, and a major federal investigation is now under way. the full weight of our government is being deployed to conduct this investigation and bring those responsible for these despicable acts to justice. we will spare no resources or expense in this effort. with -- with -- >> we have more details from washington. what do we know about these packages, and what does this say about the polarizing state of american politics right now? >> let me start with what we don't know -- what we don't know is who sent them. we don't know why they were sent. we are waiting to see why.

what isaiting to see the subject of ongoing investigations by bomb experts at the fbi and elsewhere who are examining these packages that were central former president obama, hillary clinton, maxine waters, debbie wasserman schultz, cnn, several others possibly. we have seen these trickle down throughout the day, and at points it was kind of confusing to figure out -- was there one over here? was there one over there? how many are we at? this is a real act finding position we are at. president trump said he was going to bring the full weight of the government to their on this issue, trying to get to the bottom of this. he swore up, down, and sideways the people responsible for this would be brought to justice. we are in the infant phases, but one of the things you are seeing already is a tougher posture

being taken. in congress were advised by capitol in congress e advised by capitol police to be more careful, to be on the lookout for suspicious things. there's a tighter security posture in washington because of the incidents today. >> we've got to talk about the fact that some of these targets -- in fact, all these targets were some of trump's favorite subjects as his targets of criticism in his tweets, campaign rallies, and the like. have we heard anything from the white house as to what the motive could have then? >> that's exactly right. we're trying to be careful in not assigning a motive because we just don't know as yet, but if you go down the list to some of people -- some of the people have gotten this, george soros and people who critique of over democratic leaning politics, hillary clinton, you really do see a common thread, even to cnn, the media l it that has been mocked on the right

over perceived political leanings. there really is a bit of a who's who list, and that is a thread seems to be tying together a lot of these things. again, i want to be cautious and say we are not sure what the taking ae is, but just look at what these things have in common, that is certainly a common thread that runs through them. the president speaking at the white house today taking a very defiant, very graceful tone at the same time saying this is not acceptable, saying we should not do that, but he is going to go in a rally, and in previous rallies, the president has taken a very fiery tone toward some of the same people who got these. it will be interesting to see when he is on stage in wisconsin exactly what his tone is. keep in mind, we are less than two weeks before a critical election. haidi: thank you so much for that, summarizing what has been

an eventful and terrifying evening or day of development. up next, another down day for equity bulls. why next on "daybreak: australia." this is bloomberg. ♪

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget.

beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. >> it is 9:30 a.m. here in sydney. markets open in just about 30 minutes' time. a pretty picture when you take a look at futures. remember, this is a market just about 2%, a little bit under that, away from falling into their territory. we have asian markets crossing through that barrier yesterday, and have to say it has been a great handover from wall street. blame on to you

guys. >> every time you guys in asia want to take it up, wall street just pulls it down back again, but of course, the u.s. markets, the dow and s&p 500 completely -- completely erasing this year's gains. we've also seen the nasdaq in correction territory. >> we're expecting more losses. i want to show you the bigger context using the seasonality chart. as you can see when you break it down month by month, we are looking at a pretty rough month or asian stocks. performance since may 20 12 when stocks fell about 10.2%. we do have asian stocks in their territory. futures hinting at deep losses and contracts

falling between 2% to three point 5% overnight and terms of catalyst, we will have earnings that can keep investors busy. pharma delivered a beat. at schroders, given the earnings recovery they are seeing, they have updated japanese stocks positive to neutral. when it comes to the mood in australia, we're moving deeper oversold territory. fromve a bunch of updates companies the is this morning, we did get updates from the likes of blackmore, which is seeing some stability thanks to china growth. haidi: let's get more on what we in whate watching here promises to be a bit of a difficult thursday.

you have been looking at the correlation during the selloff. during earnings season, we usually see equities break the lockstep move from the macro side of things. that is not quite playing out for some. >> it's not, and i think it tells us quite a lot about how the macro is cinematic to really driving this market at the moment. kind ofere in some way excited going into q3 earnings season. they thought finally we could get rid of talking about the trade war and some of the big geopolitical problems, and we can start talking about company fundamentals, and what's happening is companies are telling us the details of their businesses with these releases, and a lot of that is getting washed out on the bigger market moodthis chart shows it pretty . this is the relationship of stocks within the s&p 500 and how they are moving within themselves, and it shows you that correlation is holding up pretty well. the trade war, the crisis in

italy, some of the global thematics around the trade war, all just being put to the side dominatingjust proceedings, and what that means is it is following through to volatility. we had a huge spike in fix overnight. we got above 25, and that is reasonably rare. it's only about twice the average we are seeing on the vix doing the best part of this year, and it shows you the pickedtions once again back up. they had kind of come down somewhat both in equities and in bonds and also fx markets. the back end of last week, some people were thinking that might sustain itself. clearly looking like that is not the case at the moment and also setting up for a pretty tough day for asia.

>> it was not just some of these global themes, but we also saw domestic data in terms of the housing market driving bearish sentiment in the u.s. as well. >> ego data that affected homebuilders that were already battered throughout the last few sessions. we saw this sudden drop in new home sales, not only one factor that helped drag down stocks, it also raises the question -- will anything slow the fed's rate hike pace? kathleen hays here to connect the dots. >> maybe we have to see it last longer, but a think it is definitely a question being asked because remember -- home interest rateare sensitive, right? we saw new home sales hitting their lowest level in two years. mortgage rates have been rising.

if your mortgage rate gets higher, your monthly payment gets higher, homes the come less affordable. i had a chart all queued up, but i'm afraid it has disappeared. it basically shows you this big drop in new home sales. 5.5% drop to 533,000 units at an annual rate. --interesting comparison taper tantrum 2013 was followed by a percentage point spike in mortgage rate -- i love it when they do this for me. you can see how when we have a chart showing the fed funds rate rising -- that's the white line. look at that blue line. look at home sales and mortgage rates, how they seem to finally be having that correlation. the peak in home sales. washe taper tantrum, there a brief drop, and home sales

bounced back. maybe this is a sign to the fed that higher rates are biting a very important part of the economy. the fed mighthink cause if this stock selloff goes on much longer. have we heard anything to the contrary or to support that these this -- that thesis? from a highr investment strategist at guggenheim. he has said this stock market, the selloffs started a lot when 10-year yield got above 3%, and fed rate hikes have helped drive that, but he also says a big drop in the stock market could get the attention of the fed. >> i think if we had a decline of 30%, it could change what they would do. i think they would probably consider taking a pause in their rate hikes, but i think this is to them a garden-variety correction. way from that,g

but the atlanta fed president said this week watching the stock market as to a signal what economyeople about the this week. let's look at another chart from our bloomberg library. what this chart is kind of showing, the stock can rally while the fed is fighting and look what happens here. sometimes it takes a while, right? the early stages of the fed rate hikes, stocks can rally, but maybe this is at least in part what is starting to hit the u.s. stock market, the realization these rates are higher, the fed is expected to raise rates more into the end of next year, and i think this is the signal the fed is watching. right now when it comes to financial conditions, they are not too worried just yet. >> clearer signals coming from president trump in the white house about how he does not like with the fed is doing, but could relentless criticism make

it hard for the fed to ship policy? >> the idea is if you feel like you need to slow it down relente it hard for the fed to ship policy? >>, you look like you are responding to trump's criticism. that is the problem trump is creating. some people saying he is creating a situation where down the road he could say it's not his fault, not the trade war hurting the economy. financial conditions are moderate, but tightening financial conditions, maybe that will be the reason they tell us. i still do not think the december rate hike is in jeopardy, but maybe we're talking about 2019 now. >> very interesting. thank you so much for that. broadcom is said to be under antitrust scrutiny in the

european union for potentially using its market dominance to improperly pressure customers to buy its chips. bloomberg say by the inquiry focuses on chips used in set-top boxes. broadcom usesld sales practices. the adjusted net was to dollars $.90 a share, well ahead of a forecast of a small loss. the model three became one of the top-selling sedans in its home market. free cash flow was about $880 million, a dramatic turnaround from the billion tesla had been burning as it ramped up production. microsoft posted another quarter growth driven byt cloud services, highlighting its

success and shifting his focus toward internet-based computing. profit and sales for the period through september topped expectations. profit rose to 8.8 billion dollars or $1.14 a share, topping the $.96 average estimate in a bloomberg poll. has attackedm cook tech rivals for collecting user , speaking at an eu privacy conference in brussels, he sought to distance apple from companies that routinely harvest information such as google and they spoke. cook has long criticized them for harvesting data for advertising while apple says it pertains as little as possible. >> [indiscernible] it in the first place. second, users should know what data is being collected and what

it is being collected four. this is the only way to empower users to decide what collection is legitimate and what is not. sham.ng less is a >> global news 24 hours a day on air and at tech talk on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. motor's net profit fell 37% in the third quarter as sales slowed in the u.s. and china. for has elevated china to a standalone division as it seeks to avoid losses and the world stockmarket. >> in the third quarter, we lost about $100 million less in china the second in quarter, so a 20% reduction. we have a number of important launches in the quarter.

we have the all-new focus family that will be launching this quarter as well as the new escort, and then an all new suv that will be positioned very attractively the comes at the year. the very excitingly, we announced a new ceo for china, the former -- actually, a former ford guy in his past, but really deeper experience within china, and very excited to have him lead our operations going forward. >> in the pipeline, as it were. what kind of timing are we looking at before you really turnaround china to your satisfaction? >> we're not putting a timeline on it, but i know he is a very strong point of view about where we have opportunities in the business, and again, we had a very strong portfolio of new products coming not only in china but also north america, so really excited for him to take -- really excited to see him take advantage of that. >> what about europe?

what about latin america? those have been challenges for ford motor company. different areas, to be sure. >> very, very different. in the case of europe, we lost about $250 million in the quarter, largely around three things. we saw headwinds in turkey -- we have a large operation in turkey. macro headwinds there. also russia, the impact of sanctions on the economy there affecting us and the industry, and we are in the process of launching the all-new focus family. ande move into this quarter the focus starts to gain traction and get more and more into the market, really looking forward to seeing the benefits that provides. in the case of south america, south america challenged by the external environment, particularly in argentina but also brazil. we actually held the loss flat year-over-year. i think that was a bit of a victory given the degree to

which external headwinds were blowing against us in that market. >> one of the things in your release is that you will back that you hadargets set for 2020. what caused that and how far off are those targets now? >> we are not backing off the targets. we are backing off achievement of the targets by 2020. we're working very hard, working very aggressively to achieve a percent or better either margin. pulled that ahead in the first quarter based on fitness, but we have seen external againsts that have gone us and also the flow through to some degree of issues we saw in europe and china in the second quarter. we willctation that improve those businesses, but will have some impact on achievement of those targets in 2020. cfo speaking to bloomberg's david westin.

tesla blows past expectations as the model three becomes one of the u.s.' top-selling u.s. citizens. we discuss that next. this is bloomberg. ♪

heidi: you are watching "daybreak: australia." tesla sword in late day trading after reporting a rare quarterly profit, and as elon musk has hinted, tesla finally made money. analysts were expecting a loss. on the line, a financial analyst. does this change your view on the company at all? >> know, i have always had a positive view on the company and deliver atity to

some point. i have a neutral rating on the stock because of the valuation and volatility. i have said in number of times trade.ck has been a good i think this has been a good outcome. he has finally delivered. he said we would be profitable in the second half of the year and this is a huge profit. he has tesla production up to 4300 cars a week, which is close to the 5000 he has been targeting. it has been a long time coming, but he is finally there, so this is a tremendous turning point for the company. the rise in the stock will continue because the positive business momentum will lift the stock and there's a significant interest and a lot of people who have been betting against him for a long time. >> i want to bring up my next chart. the stock kind of easing. you, do have to point out

it is still the most shorted company and the nasdaq 100, but you have seen that somewhat coming off the last few weeks or so. do you think the leverage is there in terms of how much it penalizes the deal with the company? >> there are a lot of skeptics and a lot of people who purely look at the valuation compared to other auto companies. you cannot value it that way. it is unique and a number of ways. it is not totally an auto company. they also make batteries. they make solar panels, and they view themselves as an energy and transportation provider, which are intertwined. ownsther thing is tesla their own dealership networks. they are not franchised, so they have a higher margin. on average, auto manufacturing margins is about 10%. auto retail margins is about 10%, so they are slightly above the 20% combined for the

industry. that gives them another advantage, and they also are very focused on controlling all delivery, reduction, and ownership of the car, and most important we, the customer purchase experience. each step along the way, they do it very well. separate from the price being highly valued, he has created from scratch it tremendous company. the car is very much admired, has a huge fan base, and the pipeline is still delivery, and ownership of the car, and most important we, the customer purchase experience. each step along the way, they do it very over 400,000 model three's, so that gives them a long runway as they ramp up production. then they have the semi-truck coming out, which they have taken a lot of orders on that. changer and a game will be one of the first commercially available electric rolls, and they also will out the model wide crossover suv . crossover suv's are the sweet

spot of the automobile market right now, and they also have the roadster. that will be a niche car, but it's a cool-looking car that will bring a lot of interest and focus to the brand. >> this chart showing the production numbers. as you said, now meeting that 4300 cars a week. this showing in the third quarter, they actually were able 83,005 hundred vehicles. when will it become not only also also quality and competing with other carmakers in the market where you are seeing tariffs, flattening demand, higher interest rates? >> well, the car is very high quality. that is the first thing everybody is attracted to. butonly its uniqueness, it's the only high performance commercially available electric vehicle, but the quality and the features and functionality and styling has always been well received and admired.

is they have not been able to meet demand, especially for the model three, which was the car that -- or is the car that takes them from a niche and you factory to a mainstream automobile manufacturer. if it's also about high-quality and the support level, do they also perform as well as other bigger automakers in terms of customer services, customer wait time, and so forth? about interesting thing the car is there is very little to maintain on it. fluids in the car is hydraulic brake fluid, and the only other fluid is washer fluid. it is a much simpler design than a traditional car. also, the majority of the repairs, fixes, and upgrades get pushed out from the satellite, and you can upgrade a lot of

by changingthe car the software, and that is also a powerful advantage. >> thank you so much for your time. plenty more to come on "daybreak: australia." this is bloomberg. ♪

heidi: you're watching "daybreak: australia." let's get the quick check on the latest business flash headlines. wells fargo still struggling with the follow-up from a fake account scandal that erected more than two of years ago. the bank paid more than $65 million in new york over the issue. >> boeing rose in the regular

session after surging cash flow soon anyproved outlook concerns. free cash flow jumped 37% in the third quarter, more than double expectations. boeing says sales will reach a record 100 billion dollars for the year. >> the vaguest sense said a number of rivals have made formal approaches about cooperating in japan. the ceo says he has received several inquiries about a joint venture with the casino industry finally opens up in japan, but he says he has no interest in working with rivals and the sense will strike out on its own when the industry is given the green light and japan. >> that is about it for daybreak us trillion morning. trading in new zealand is under way. a few minutes away from

trading in australia. by 1.7land trading down percent after a blowout trade deficit number, the biggest monthly trade deficit on record. this is bloomberg. ♪

haidi: good morning, i'm haidi stroud-watts in sydney. from: i'm shery ahn bloomberg's global headquarters in new york. sophie: welcome to "bloomberg daybreak: asia." haidi: our top stories, the route that he raised gains on wall street has spread to asia, pushing markets further into bear territory. housing data stoking