"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. haidi: welcome to daybreak australia. shery: i am shery ahn. i am sophie kamaruddin. we are counting down to major market opens in asia. ♪ haidi: here are the top stories we are covering. --. stocks fell, talk shares tech shares tumbling on the week iphone demand. apple among the big losers. the nasdaq fell for a third straight day and the russell small-cap bench reason for the year. goldman sachs falls the most in

seven years as malaysia demands a full refund for deals involving the 1mdb investment fund. shery: looking at the markets closing, it was risk off for the first trading day of the week. we saw the dow and s&p 500 finished near session lows. lows.ish near session it was bank stocks and related, the nasdaq falling 8% on news apple or signs iphone demand could be weakening. the s&p 500 also closing down 2%. utilities and others outperforming the gross -- growth stocks. a new trend in the market. still down. the energy sector also moves down. just whatwhat do bgi wti has done. we started earlier in the session but on news opec was

ready to cut production on 2019, setting up for the we saw president trump tweet about not wanting saudi arabia or opec to cut oil production, so we saw the plunge in wti price. the longest losing streak ever of course. all of this will play into the markets in asia area u.s. bond on my matee closed -- on monday for veterans day. we are set to inherit the selloff from wall street, futures pointing to declines of 1%. we are seeing that in wellington where shares are off 1.1%. we have investors looking for something concrete to hang their hat at. we don't have much on the data docket to distract. we have confidence data from australia and the lookout of chinese lending and supply figures that could come out today. that is ahead of retail sales figures from the mainland wednesday which will be key

indeed this week. on the earnings front we have samsonite, mitsubishi, ufj and noble group to report. we have the aussie on summit aseanng off -- the summit kicking off. mike pence is attending. the u.s. robe into imports is advancing, which will not be soothing to japan and korea seeking exemptions. haidi: a huge week for geopolitics with investor sentiment. but get you to first word news with jessica summers. sank into ae euro 16-month low as you political risks return. tuesday is the deadline for itsy to make a turn on spending plan and the european union is prepared to take disciplinary action if necessary. rome's initial budget was rejected by the commission.

they decided they will stick by their plan come what may. sterling fell the most in a month as premise or theresa may takes the midweek brexit deadline. she believes she is edging to agreement with brussels but euro skeptic conservatives are planning to vote against her and causing the u.k. to crash out with no deal. will behrough scrutinized and signed off by both sides this month. >> i have the feeling we are slowly tiptoeing to a definitive agreement, that we will conclude in the coming weeks. the is a tragedy for europe, and we mustn't add to that with the drama of the u.k. departing in a disorganized way. iran is continuing to abide by the terms of the 2016 nuclear deal. keepingrt says they are uranium stockpiles and enrichment below the levels agreed by roald powers and inspectors could carry out

investigations that any site they wanted. this is a first from the iea as reimposedtions were this month. wildfires in california have claimed 31 lives. the cause of the fire, still not known, but nature and humans share the blame. not forest management as claimed by president trump. fire in themaged by u.s. has doubled in 30 years. 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. shery: take a deeper look into the u.s. market selloff now. across asset reporter joining us. u.s. bond market closed in remembrance of veterans day. thatd see another trend

continues. the value overgrowth. we did continue to see value wergrowth, but it was on -- continue to see weakness in tech. if you look at 30 day volatility on the nasdaq 100, it is at the highest since 2011. that is yes, this month but takes into account the october selloff but really driving losses at the heart was apple. momentum holdings lowered their outlook for the second quarter and said one of their biggest customers -- they did not name that customer but everyone thinks it is apple -- they want to reduce purchases. that puts the focus back on demand. you put the blame on tech, but is not the only place we saw weakness. small caps also declined. reporter: it was a broad

selloff. sectors,at the s&p 500 one was in the green, real estate. it was up 20 basis points. when you look at defensive names, value overgrowth, but they were in the red today. look at defensive names, they were in the red. we saw it across the board. it was not just check, but that is where -- tech, but that is where the majority of the red and selling was. if you look at the sectors being sold the most, amazon being tied in there, and then energy. oil prices continue to take a tumble. we see energy prices and stocks falling as well. shery: president trump could not help himself. why didn't we see this before? it is because of the fed tightening. now blaming it on the democrats

for stock market headaches. sarah: he has a new scapegoat. i would not say the selloff is because of democrats and the investigation. i will say ahead of the midterm elections, i spoke with investors on various scenarios. they said there is something alled tweet risk, if you had split congress, he could have more headlines, so no, this won't affect the stock market long-term. it is not a single reason for the selloff. we are seeing it exacerbated in the tech space, but we could expect more volatility going forward. haidi: i am sure we could bring up a chart showing a tweet index. our cross asset reporter taking a look at the selloff overnight. resuming using the oil patch, the bearishness there, saudi arabia said opec and allies

should reverse half of the increase in output they made earlier this year. we are joined by tina davis. what we saw in the market reaction, was that a reaction to one of the tweets, or was it a lack of detail and unity within opec and friends? were trying tos stabilize the oil price, and they were able to do that initially. we saw weakness midday, and that was acquainted with moves in equities, sarah talking about energy stocks being down because of oil prices but they also correlate with equities. after trump tweeted today that he didn't think there should be cuts, thats, -- any exacerbated things. what the saudis were trying to do which stops the 11th consecutive day of down prices, they managed from is half the day before they lost to the trump tweet risk.

something we should have on the bloomberg. we have charts for everything. we talk about opec, they did manage to pull up prices for a little bit and a little while. does this signal the fact opec is losing its touch? it is also interesting to look at what the russians said. the saudi's said one million barrels, they would take half of it going forward. 500,000 barrels a day. what you heard was the other middle eastern countries saying there was consensus to do this. the russians were saying we look at production cuts. of and somewhat necessarily they are ready to cut output that much. you saw the outputs question whether the opec, non-opec agreement is feasible going forward.

haidi: i am wanting -- wondering where all of this leads -- leaves u.s. shale. tina: we have seen substantial growth in the last year. we saw 2 million barrels year on year increase in the u.s., most of it in the permian, part of west texas and new mexico. that has suffered from pipeline constrictions, a wide spread between the price of oil and .idland, versus wti price we have seen constraints elsewhere, popping up in canada, the backend, and that is showing the output, supply growth we have seen in the u.s. and north america is running up against constraints of infrastructure. you come in with drills first and hope pipelines will follow. they are waiting for that. shery: thank you so much, tina davis with the latest on oil. theresa may says brexit talks are in the endgame as

negotiators prepare to go through the night. an update coming up. haidi: the voice of optimism on global markets, they think it is too soon to declare an end to the u.s. this is bloomberg. ♪ oomberg. ♪

down toe are counting the start of trading, this is how futures are showing up. showing a little lackluster across asia. the selloff will remain unabated. it is driven by tech and concerns apple demand is weak going into the crucial holiday season. when it comes to all vstoxx traders are feeling optimistic. -- aussie stocks, traders are feeling optimistic. it does look like we are seeing stability returning to these markets. i am haidi stroud-watts in

sydney. shery: i am shery ahn in new york. asian stocks with a rough start after the latest falls on wall street. joining me is lee zan saunders, from charles schwab. great to have you with us. it was surprising to see volatility in october. that is -- it was not surprising to see volatility in october, but there is some even after the midterms are gone. is this telling us something about the future of the bull market? it has a lot to do with broader conditions not the least being tighter monetary policy in the united states, tighter financial conditions and less liquidity from global central banks. our theme coming into 2018 was we were moving into a new, volatility. of volatility

one important thing to remind investors is the last couple of years, lack of volatility was the exception, not the rule, moving back into an environment where you see normal exception, not the rule, moving back into an environment where you see normal marketability. that is a function of the liquidity tied now moving out. we have had 10 years of liquidity tide coming in at the opposite is happening now. let's take a look at financial conditions. it is the gtv chart on the bloomberg showing the that funds rate continuing to rise. financial conditions in the u.s., here and global markets starting to fall. this at a time of slowing global economic growth as well. how vulnerable are markets to headline risk? i think we may look back at this time and see there was a sufficient number of global markets already approaching or in recession we may end up declaring some version of a recession. for now the u.s. can avoid one, and the risk of a u.s. recession coming sooner than what the expenses -- the consensus

expects, the biggest risk factor in deciding factor will probably be what happens with trade. if trade were to worsen from here, the additional tariffs be applied on u.s. companies importing from china, that can be the factor that will meet in -- shortened the recession. it is a meaningful risk as we look at 2019. haidi: everyone is helping we will get some better future. draw your attention to this chart looking at the level of economic surprise we are getting in the u.s. versus the rest of the world. we have had a series of pmi disappointments and others asia andarticularly in europe as well. take a look at the white line which is the u.s., it is the only region that is still alone in delivering upside surprises. does that tell us fundamentally there is further upside to go

because the economy is a big story despite the fact we are seeing the fed doing its thing steady as she goes? >> one of the problems is that index looks at hard and soft economic data. where you see the strength is in the softer economic data, the surveyed competence-based data. we see it in strong consumer confidence measures but there is ,eakness under the surface especially those that are more forward-looking in nature. that is one of the things the market is reflective because although in level terms the u.s. economic data looks quite good, its rate of change that tends to matter more for markets, that subtle weakness we are turning to see in the forward-looking indicators is reflected in the higher volatility and equity market. the stock market has an ability to sniff out inflection point before they actually happen in

the actual level of economic data. that is why i am fond of when comparing fundament is to the stock market, reminding investors better or worse tends to matter better than good or bad. we tend to focus on is the data good or bad as opposed to good, yes. is it getting worse or better? that is the difference the stock market picks up. away, whilehe take we are in the middle of this selloff, he said the markets are everything awful or everything is wonderful. buttry to find a cautious opportunistic position in between that, would you be seeing opportunities at the moment? be,t is possible we could at least in the case of the united states, a secular bull market. the risk of a cyclical serious 10%ection, we have had two directions so far, but we could

get a cyclical bear market even if it is in the context of an ongoing secular bull market. to your point, in the short-term use -- you tend to see all or nothing moves in the market. also the fact we are much more machine driven in terms of minute to minute trading, algorithms have more power in terms of short-term moves in the market so you can get these moves that are not supported by fundamentals but represent a characteristic of the market investors have to contend with. one of our messages is for many investors to say, we should shorten time horizons, take a trading approach in order to play the same game. we say the opposite, that you will not win that game and if anything given the short-term gyrations driven by algorithms, individual investors should time horizon because over a reasonable time horizon, fundamentals and prices will be connected.

what about inflation, because we see debate on pressures. we have food tumbling but at the same time more tariffs on chinese goods? what is your outlook? risk than withe inflation's. we are seeing the tightness in the labor market move to higher wage growth, and that has legs. we are shutting to see traditional inflation pressure. you have oil prices down, so that keeps headline measures down but for measures are affected by the ripple effects from tighter later -- labor markets but the tariffs effect. historically they have caused weaker economic growth and higher inflation. the near-term risk associated with trade is it contributes to a rolling over economic growth but near-term pickup in inflation which means if the fed is going to have to continue to tighten into an environment

where economic growth is slowing down, that is another reason to expect more volatility. haidi: thank you so much for your time. charles schwab chief investment strategist and senior vice president coming to us out of hong kong. southbank seeks to raise $21 billion by taking their mobile unit public. we are telling you what to watch out for in the next mega ipo. this is bloomberg. ♪

shery: i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. softbank has announced the ipo of their cash cow mobile unit, seeking $21 billion that would make it japan's biggest public offering in history and would help softbank shift them telecom to global investments. we have all the numbers, reasons and challenges great let's do the numbers first.

ramy: you mentioned the top number, $21.1 billion. in terms of what this actually would get you, basically it would get you 1.6 billion shares if you decided to buy all of them. that is ¥1500 apiece. that is a third of the business in the ipo if it went public at this indicated price. the new name would be a change, called softbank corporation once it starts trading and would .hange december 19 taking a look at five weeks from now. also the ipo price range will be set in the next few weeks you are interested in getting in on this action, it is november 30 and the final price is december 10. if the idea of buying into the telecom cash cow unit isn't of initial interest, look at the dividend payout ratio. , 85%.t that number

this is a high payout to pull in the investors great you can see docomo, that is 50% and kddi, 38%, but this is major ventilation. -- temptation. at thelmost a 5% yield indicated ipo price great we talk about yields in japan, do we ever talk about 5%? this is really the land of negative interest rates. in terms of what he wants to do with this, he wants to shift away from his telecoms business to get into the technology space, not just japan's but global. he made good bets on alibaba, yahoo! and made his vision fund. it all depends whether he can actually pull off this indicated price because it is a whopper and would be a record. shery: he needs all that yield to attract investors especially

when you see the government pressuring the mobile carriers to cut their bills. ramy: you get to the heart of it. in august the cabinet secretary said, we think the price is should be 40% cheaper. they are looking at a government study where they saw the u.k. and france's rates were 50% cheaper than japan. ntt docomo has caved to this, saying they will cut rates of billion tourn ¥40 customers. so the markets are not that good investor appetite may not be said itong but mr. son will not hurt company profits and they will cut costs by trimming their staff as well as moving other people around. shery: very ambitious but also good at what he does. thank you so much. we hear from luxury retailers doing business in china. find out why this man is not

worried about the slowdown in chinese shopping. this is bloomberg. ♪

haidi: it ishaidi: 9:30 a.m. in sydney. we are looking at a down future with asian futures, looking like an extension of the three-day selloff in the u.s. overnight it was decline for iphones, sending suppliers down as much as 32%. watching apple suppliers at the open, sydney futures down .1%. i am haidi stroud-watts. shery: i am shery ahn in new york. let's get to first word news. reporter: tensions between the u.s. and saudi arabia are rising after president trump slams the

kingdom for their proposal to curb a oil production. he said as should fall based on supply. west texas intermediate have been declining ahead of the tweets and briefly dipped lower still. people are debating how much they should cut production. violence continues in southern israel and gaza after militants fired rockets over the border and the army attacks military sites in the strip. this comes after a botched raid left seven palestinians and an israeli commander dead and left the prime minister to cut short the trip -- a trip to europe. consumer inflation eased to a 13 month low, giving the r.b.i. room to hold rates when policymakers review strategy next month. cpi rose 3.3% from a year earlier, slightly below an estimate in the bloomberg

survey. it puts pressure on the r.b.i. to hold for a second straight meeting. they raise rates in august to the highest in two years. the force behind marvel comics has died. stan lee was 95 and his work provided lucrative works for hollywood like spiderman, iron man. he started as a writer for timely comics before rising to editor at marvel. he made his mark in the 1960's creating superheroes with tough lives. his creations include the war and the fantastic -- included thor and the fantastic four. 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. like it could be another down day for markets across asia, they declined and the dow finished at session lows.

bring in sophie kamaruddin for what is moving. sophie: we are heading for a day in the red with futures pointing to declines of 1% in tokyo, seoul and sydney. it is the first drop in five, and they are off 1.1%, the biggest drop since october 23 for shares in wellington. we have little on the docket to district from the risk off sentiment. are waiting for business confidence as money suppliers could come before -- we have adding to the risk on mood the pboc signaling tougher management of the yuan which could add to the anxiety. i want to show you what is going on with the shares. the cost of hedging for the asx 20 -- 200 has fallen to the level lowest since may. this after the asx 200 rebounded 5% for monday's close. it renewed faith in on the

stoxx. that will -- in aussie stocks. and we are keeping an eye on apple suppliers and those across the region. they will be feeling the pressure as more demand concerns pile up and among them japan display. the stock is down 50% the past year and the screen maker sees more bumps ahead after posting an operating loss for the second quarter on volatile customer demand area -- demand. kamaruddin in hong kong. let's see what else we should be looking at with andrea. looking at this, the asian apple suppliers, one of the major drivers overnight. a lot for investors to juggle at the moment. reporter: absolutely. although the selloff was largely driven by tech stocks, what it

underscored was this nervousness we see in markets at the moment. we had mohamed el-erian talk about this war he is going ahead at the moment. this upsetting forces, we have a chart that shows the index has failed to break through a key technical level because of this. you have very favorable u.s. growth. on the other hand you have concerns about a slowdown in europe and more importantly about china's growth and the government shoring up this economy, the central bank has said it is going to do profound changes. you have all these things going on and you throw in the fed. we have u.s. consumer price data coming out tomorrow. that will be interesting to see how this debate is playing out between traders and investors in terms of what the fed will do in terms of their intentions.

with all things going, we are looking at definitely more volatility into this week and probably into the end of the year. shery: plenty to be worried about. why is this investor bullish with risk assets going into next year? aberdeen assets still overweight. they stillterday like risk assets. in fact it is overweight global equities going into 2019. the reason in the slowdown -- is the slowdown but they anticipate a recession. thatmains confident corporate profits will hold up and be enough to bring in investors. 15%oes see a 5% to correction in global equities sometime next year but says share prices will recover as

profits will surprise on the upside. quite positive on the fundamentals for the chinese market where you see equities having attractive valuations. you so much for that, across asset asia ahead. don't forget to check out our gtv library. gtv on the bloomberg. haidi: what italian luxury luxury-- this italian designer has seen slowdowns from the chinese market and trade concerns. they dropped 23% since june. the chairman and ceo told bloomberg he is not worried and that business in china has been good. >> our business in china was years,the last three before 2018, first quarter was

huge, and the first six months was, nine months was very good. for the future, depends on the i cannot say but anything. viewy always to make our long-term. haidi: meanwhile the chinese slowdown in says a the market and looming trade concerns is forcing it to change strategy. ause when itg p comes to a buying spree as they look to become -- the chairman is focused on turning around underperforming labels. >> we are going to focus on integrating existing brands. we have a good group. we also are facing another big challenge. some of the brands we bought, although they are heritage and have high consumer recognition,

performance has been far from ideal. we need to revamp those brands. we need to give them time, five years, to turn. we need to integrate rants we already own and slow down on dealmaking. shery: he will try to emulate the model of the european luxury conglomerate. >> we want to learn from lvmh. the multibrand approach allows them to develop synergies and retain individuality in niche markets with each brand. haidi: that was the chairman speaking there to bloomberg. coming up next, mike pence arrives in china with words of reassurance about america's commitment to asia. we will look at the value of those words. this is bloomberg. ♪

shery: welcome back. i'm shery ahn in new york. haidi: i'm haidi stroud-watts. you are watching daybreak australia. two major summits are taking place, singapore hosting asean while aipac regions in papua new guinea. i spoke with the australian prime minister and asked how he views the state of relations with china. >> i would say they are very stable and i welcome that. a productivealways partner in the conference of strategic partnership. that is the status of the relationship and i welcome the recent meetings with foreign ministers and trade ministers and the judgments we will have in the summer season and the weeks ahead. gets: as the season underway there is one elephant, and that is the absence of

president trump from the singapore and png meetings. vice president mike pence saying is -- it should not be seen as a snub. he is representing the u.s. in absence of president trump. let's bring in our next guest. said this has also sort of strategy for asia has never been stronger. the senior vice president joins us out of new york. comfortable with him missing out but aipac is a big mistake? >> yeah. burma and the south china sea, there is no reason for him to be in asean especially because xi jinping will not be there. and seeing how much he gave away -- i could see him not wanting to revisit the scene of the crime but png is different

because xi jinping will be there and papua new guinea is ground zero in battle for influence against beijing in the western pacific. look where it is near micro -- micronesia, the cook islands, this is the next war of influence between china and the u.s. it shows we care less about them that china does. that is a big miss. pence isice president the best in the administration to articulate policy against china ever since his landmark hudson institute speech. without trump it looks like less than china's offering. haidi: we heard from the government saying this area is our patch. it is a strong match to be -- message to be sending to beijing. do you think we will see the middle economies and regional significant ones like australia forced to take a position choosing between their traditional ally and their

biggest trading partner? >> a lot of countries don't want to like malaysia and indonesia, but the big players like india, they are choosing the u.s. over bashan given beijing's sharp altos in the region. the region. this is a great opportunity for us and we are missing out by not being there, leaving tpp. australia is a perfect example, partial is much tougher on china. they have had some version of america's foreign agent registration act and they are refurbishing an old u.s. base on papua new guinea to push back against china. australia is willing. i wish we were there. shery: you mentioned mike pence at the hudson institute. outlining beijing's unfair trading practices. the trading practice doesn't

bother me because we are not saints in this regard. beijing, -- trade with you get what you pay for. his emphasis on human readers, defense of taiwan, that was the game changer. stuff on trade we have heard before and companies who want to do business there, you asked for it. but the other bigger geopolitical moral issues, that was the meat of it. shery: we saw a mature elections, several candidates opposed to president trump's tariffs and trade were defeated. does this give the green light for president trump to become harsher on china? >> i think the tariffs haven't hit yet and people have money in their pocket from a hot economy. most of the rural states will stand with president trump even if it is a hit to their bottom line. this gives trump reason to stay harder against china for longer especially because many democrats dig in on trade more than republicans.

don't expect easing despite the trump -- that trump last week left a popular deal in argentina. i found it interesting in your recent visit to shanghai, you found less level of alarm with where the trade war goes from here talking to people on the ground. >> the big news is they let me in. even bigger, they let me out. ihad to give it speech, and was surprised how laid-back everyone was. i was told it could have to do with the fact the mainland media has liberally downplayed the training war -- treating war, letting it be seen as descriptors -- disrespect of xi jinping. they say we will go to europe instead. countries like germany and sweden are cutting back on chinese investment. everyis going to require economy to be categorized and locked. i don't think they were up to

date how serious this new error could be. haidi: maybe ignorance is bliss. we talked about xi jinping's summer of discontent. you see this threatening his position. level of stay with the grievance you are seeing? >> i think it is>> overstated. facial recognition technology, cameras, everywhere, there was a flash. eight channels in my hotel, all xi jinping all the time. there is a lot of talk in the foreign business immunity. there is no revolt were pushed back to speak of. the only thing he used in these conflicts to solidify his position at home. if he sees any grounds for discontent, it will come so quickly we never saw it coming. i think he is safe. he is getting tighter and tighter at home every day. last week we heard

secretary pompeo had to cancel his meeting with his north korean counterpart. from how much longer can the u.s. sustain a trade war with china when you have north korea to deal with? >> i don't think they are related. even if we have a trade war with china, they will still back north korea because it serves his purpose to keep korea divided which is what china's interested in and they are making out great from the need -- denuclearization process because trump has unilaterally canceled military exercises in the south. so he is a great gift for president xi. the trade war could be a rounding error. he could think this is the time to get the u.s. out of asia. shery: the senior vice president chongqing. brexit negotiators are working through the night to reach a deal but time could be running out. the latest next. this is bloomberg.

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shery: welcome back. i am shery ahn in new york. haidi: i am haidi stroud-watts. a quick check of business flash headlines, airbnb is following google, facebook and uber and will no longer force staff who claim sexual harassment to go to arbitration. deal withnot arbitration cases that deal with discrimination. but they can force tests and hosts through arbitration. shery: kellogg looking at slimming down funding for buyers of cookies and food snacks to concentrate on faster growing parts of the empire. it is part of a strategic plan announced earlier this year with kellogg suffering from a weaker

pace for serial. become says kellogg will more agile with a focus on quality customer demand. haidi: commercial bankers poised for new bonuses. is ais a report, but it less happy holiday season if you are in investment banking advisor next year may not be so withg -- so rosy technology eliminating jobs to make it easier for firms to pay less. brexit negotiators are working through the night to reach a deal, but theresa may says the final stage is proving difficult. kathleen hays is watching this. theresa may says negotiations are in the end, but many opponents think it is game over for any kind of deal, especially if you are looking at the november deadline.

i have to say parenthetically, my heart goes out to theresa may. this is a tough thing to do because it isn't just a deal the european union has to agree, and they have been pushing back for over a year. it is also something u.k. parliament has to agree and her cabinet members and meanwhile she has a lot of opponents in the wings who it seems would be pleased to see this go down and smoke because they are itching to get a chance at the prime minister seat. after the brexit deal is best. it is a thankless job. that the deal was in the endgame, the chief negotiator for the e.u. had said the deal is nearly finished. we saw the dollar rising against the pound a good bit, but when she gave her speech, she seemed

convinced it is just around the corner. listen to what she said earlier today. the newincludes relationship we will forge with our european allies as we leave the european union. the negotiations for our departure are now in the end game. we are working extremely hard through the night to make progress on the writing issues in the withdrawal agreement which are significant. both sides want to reach an agreement, but what we are negotiating is immensely difficult and i do not shy away from that. kathleen: reaching a deal, the clock is ticking. it has to be done by march next year and there is a special summit meeting coming up. the negotiators now have until wednesday to ink some kind of a deal so this can move ahead and get special approval so it will be in place for this special meeting. one of the things they have to issues around the

customs union. there are many sides to that story and northern ireland, how it is dealt with, not settled with either. any deal must survive u.k. minister scrutiny. one of the secretaries in her cabinet said, we are going to be a check on the deal too, so you can see how difficult this has and the parliament, the conservatives versus labour party, former prime minister orton brown is pushing for a second brexit referendum. let's get this -- forget this entirely and many say they will never get a good deal. tony blair saying this is going to fail in the parliament. isseems what might be lost what is a good deal and how the various political factions can position for what they want out of this. meanwhile in terms of the dollar

a 17 monthow it hit high, the e.u. says once again it is going to put its foot down with italy and make it conform to budget rules. italy's prime minister saying, words from the e.u. will not change this for us, so it is another reason we saw the big move in the dollar and another thing that hit markets area haidi: there are few doubts about the fed raising rates. the new president of san francisco is certainly certain. why so? kathleen: mary daly said she sees two or three more rate hikes possibly december, possibly two next year, so she is in line with consensus. she replaced john williams. she is the person we are watching now. we are waiting for jay powell on wednesday. the fed chair has the final word. that is elected for

daybreak australia but trading is underway, a few minutes from the staggered open in australia looking like downside continuing as asian markets wake up. this is bloomberg. ♪ ♪

haidi: very good morning. girl -- shery: good evening from new york. >> our top story this tuesday, technology in general. apple supplies in -- under pressure as reports show a weakening demand for iphones.