♪ carol: welcome to "bloomberg businessweek." i am carol massar. jason: i am jason kelly. we are in bloomberg's global headquarters. carol: this week, we have a special takeover issue. it is called the year ahead. it is a 365 degree look at the topics facing the business

leaders in the coming year. it's all leading up to our summit hosted in new york city. we will be there. jason: we will be there. big themes -- the global economy and more. carol: what to expect. we will also talk about trade wars and brexit and the slowdown in china. jason: plus, a look at publicly traded companies worth special attention in 2019. carol: and what is next for u.s. politics? it's never too early to start talking about 2020. jason: we are already talking about it a lot, which is why we start with josh green in washington, d.c., author of "the devil's bargain." in this week's "bloomberg businessweek" story, the 2020 campaign for the presidency has begun, which makes things tricky for democrats. josh: we will have a big clash between trump and democrats who won back the house. i'm looking at pressures that will fall on the democratic party. they have fought for two years in the minority. now, democrats have subpoena power. they have oversight. they control the house. but that will bring pressure on the party.

what you will see in 2019 is the party is being split into two factions. you will have the governing wing led by nancy pelosi in congress, and then you will have as many as two dozen or even more democratic presidential candidates jockeying for the hearts and minds of primary voters. it looks to me like those groups could go in different directions. carol: so it divides the party, makes it difficult? josh: it does. democrats have been saying, for two years in congress, give us control, we will be a check on trump. that's largely why they got elected. if you look at exit polls, talk to strategists, people want them to govern responsibly. if you are a presidential candidate, you are not so

worried about governing responsibly, you are worried about standing out from the crowd of presidential contenders. one way to do that is to be the furthest to the left, most vocally anti-trump. so you have people like liberal activist tom steyer, who has already spent $100 million running cable ads saying we should impeach trump. that is a direction that the elected democrats in washington do not want to go. they think there will be a serious backlash to that. but people like steyer and michael avenatti want that attention. they want primary voters gravitating to their presidential candidacies. that puts pressures on the democratic party that they will have to grapple with in 2019.

carol: you mention polls when it comes to the issues of putting forth impeachment proceedings against the president. you say all voters -- according to this poll, 51% oppose the idea of house democrats bringing impeachment proceedings. but if you look at democratic voters, they see it differently. they want democrats to go after the president. josh: nancy pelosi has been out for the past couple of months -- any time you see someone saying if we went back the house, we should impeach trump, she says no. but a poll this morning showed only 33% of americans want to impeach trump. a majority do not want to impeach trump. but when you look at the subsample of only democrats, a

majority of democrats do want to impeach trump, 61%. so pelosi will have to grapple with the fact that a lot of democratic voters want to rush to that extreme. this is the tight rope the democrats are going to have to walk in 2019. if they're not careful, they could turn around, lose the majority they just won. and in 2020, there is a second important election, whether or not trump has a second term. carol: turning to what is next for president trump in the year ahead, trade. according to consensus among economists and investors, the biggest threat to the world economy in 2019 is an escalation of the u.s.-china trade war. jason: at the same time, president trump is meeting with president xi in argentina later this month. here is reporter shawn donnan in d.c. with what we can expect. shawn: there is a best case and worst-case scenario. and what we see in the trade wars there. the best case scenario, what we are getting out of the white house, is some kind of cease-fire. it is okay, we've gone to war, let's pause. maybe we pause on tariffs, the $200 billion on products hit with tariffs in september. that was a 10% tariff. that's due to go up to 25% in january. one possibility is the trump administration puts a pause on

that in exchange for some kind of concession from the chinese. then you go into months and months of talks about complicated things that drag on, as trade negotiations do. the worst-case scenario is there is no cease-fire, and then we go into january and the guns are blazing. you go up to 25% on the previously mentioned $200 billion in trade. in the president has already started talking about another big whack, which is $257 billion. basically all of the trade that is remaining that could be hit by tariffs in the coming year. so at the g20, hugely important meeting, it will set the stage for 2019. jason: so what are we to make of what the president of the united states said, coming out of this long phone call he had with president xi of china? he seemed optimistic.

the markets rallied a little bit on that perceived optimism. is there something there? is this rhetoric? shawn: one of the things we have always heard about president trump is always pay attention to the last person he talks to. so he always comes out of a meeting with xi or conversation with xi optimistic about the possibility of doing a deal. then he kind of huddles with his advisers. among his advisers are the pro-deal crowd -- steve mnuchin and larry kudlow. on the wall street side of things, you think you do not want to upset markets. they are worried about the potential for a trade war that gets out of hand. and then you have the china hawks, peter navarro and bob

lighthizer, who think the u.s. is fighting an epochal battle. that this is about the existential future of the u.s. economy. jason: you mentioned bob lighthizer. are there any lessons to be drawn from the nafta negotiations here? anything about the u.s.'s posture or even its negotiating style that we can draw from going forward? shawn: i think china is different, just in terms of size and scale of the problem, and also the view here in washington, on both sides of congress, that it is a problem and that it needs to be -- that the u.s. needs to get tough. that's a different story. but at the same time, remember we had a lot of bluster going into these nafta negotiations. and you came out with something -- there were some interesting tweaks. this was really a tweaked trade agreement rather than a revolutionized trade agreement. jason: still ahead, the global economy in 2019. will it squeeze out another good year? carol: good question. plus, brexit aftermath. when the headlines fade, bank of england governor mark carney will be in the hot seat. to repair the economic damage. jason: this is part of the special issue on the year ahead,

we will speak with industry leaders on the most urgent topics in the coming year. carol: this is "bloomberg businessweek." ♪

carol: welcome back to "bloomberg businessweek." i am carol massar. jason: i am jason kelly. join carol and me every day for "bloomberg businessweek" on the radio at 2:00 p.m. to 5:00 p.m. wall street time. carol: you can also find us online and on the mobile app. in the year ahead, global growth should be strong in 2019. but that growth may be a bit more imbalanced. jason: and rising interest rates and tariffs in the u.s. could make for trouble. i caught up with peter coy for his intro to our special year ahead issue.

peter: there are so many things to worry about. the crazy stock market, trade tensions, and so on. we, journalists, and even the public tends to worry, what is going to happen next? it feels like a roller coaster. but if you actually got performance of the global economy, according to the international monetary fund, it's been remarkably steady. we had 3.7% growth in 2017, and we are looking for the exact same number in 2019, for good, solid, steady growth. jason: but one of the reasons people worry, i should point out, is because it has been so good for so long. isn't that part of the reason, as humans, we think this cannot last forever? peter: the u.s. is the most interesting case. first of all, it is the biggest economy in the world and it

influences what happens elsewhere. the u.s. economy, if it gets past june, 2019, still growing, will be the longest expansion in u.s. history, going back to 1857. now it has not been a strong recovery, but just really steady. like a tortoise. jason: but the duration has been unprecedented. peter: if we make it. and we are expected to. if the u.s. continues to grow well -- better than europe and japan -- that will help pull along the rest of the world. and that's the reason the imf is pegging another 3.7% global growth, just because you have that engine of the u.s. pulling in imports from around the world. jason: let's talk about the u.s. versus the rest of the world. because we have this -- if carol were here, she would talk about synchronized global growth. and whether that is a real

thing. whether it was a real thing and is not anymore. peter: it is less of a real thing in the sense that the u.s. has been outpacing a lot of the other rich countries. it is farther along in tightening financial conditions because of the worry that the economy is so strong, it is at risk of overheating and becoming inflationary. so what happens when you raise your interest rates? you pull in money from elsewhere. so that is one of the downsides, actually, of the strong u.s. growth. there are certain countries that are quite vulnerable to that. argentina and turkey are obvious examples. if jay powell, the chairman of the fed, raises the federal funds rate in the u.s. and the entire range of rates goes up in the u.s., global investors pull

money out of the weaker developing markets, which need the money, because they are running on a deficit. they need the constant inflow of foreign capital. the only way they can respond is by then driving their interest rates up to punishingly high levels, which hurts their economy. it is like a catch-22 for them. jason: what do you think will happen? peter: i thing there will be some of that. there will be constant pressure on these weaker developing nations. when the u.s. is pulling in money, it is also pulling in goods and services. the u.s. runs bigger trade deficits. who does not like that? a lot of people don't like that. especially the man in the white house. jason: there is one person who we know -- his twitter feed does not like that. peter: and who do we expect

trump to blame? he tends to perceive these countries that have a trade surplus with the united states as a sign of malfeasance. jason: that somebody is trying to get away with something, and he is trying to stop it. peter: right. so what do you do? you erect higher trade barriers to stop that from happening. the fact of the u.s. is growing, which is a positive, could result in stronger trade frictions in 2019. carol: trade, brexit, and a slowdown in china are just some of the issues that could impact the economy in 2019. jason: here is joel weber on how he put together bloomberg's special issue on the year ahead. joel: it is all about the future. what does the future hold? we can only make educated guesses. when we looked at our crystal ball, which looks like data, we were able to break it out to the themes you see. these are the things we felt that people will be talking about for all of the year. carol: in one of the things we talked a lot about in 2018 was

china. we will continue talking about it in 2019. joel: it is a big country. the element we wanted to talk about was slow down. when you look at the numbers, something happening. carol: this is something we do not normally talk about when it comes to china. we usually talk about growth. joel: growth, growth, growth. the government is trying to grapple with the shift. we have seen it with the stock market there. which is really cool down. at the same time, there is a lot of debt there, which could lead people to believe there is another variable, which could have consequences for the global economy.

carol: it is interesting to see what the implications will be. joel: it is one of those stories we will hear week in and week out in 2019. carol: brexit kept us busy this year and will next year. joel: it will absolutely. because there is a deadline. there will be an outcome by that deadline. we do not know what it will be yet, but something will happen. the other consequence of this is what it means to the rest of europe. there is the brexit story, but what are the ramifications for the continent and the politics scene? they are drifting towards the right. now you see macron pushing back on the left. all of europe has this reckoning. because of brexit, will there be more referendums, like u.k.? or will it be more harmonized? carol: i came back from an event in london. there were a lot of business people. they were polled about it, what they thought about brexit, would it a crash landing? most said we will figure something out, and that there will not be a ton of things that will change.

joel: this is a topic that we know will define the year. carol: what is interesting that this issue is it is a wonderful lead up to what we do at bloomberg. joel: it is a franchise moment in the year ahead. we have a conference here. there will be one in tokyo. i will be at the one in tokyo. it brings business leaders together to talk about these trends. carol: coming up, the juiciest prize in euro land is up for grabs. mario draghi will end his eight-year term as the president of the european central bank. jason: and more from bloomberg's special look at the year ahead and the top companies we are keeping an eye on. carol: this is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek."

jason: welcome back to "bloomberg businessweek." i am jason kelly. carol: i am carol massar. you can listen to us on the the radio on sirius xm channel 119, and am 1130 in new york, am1330 in boston, fm 99.1 in washington, d.c. --

jason: and in london, am 960 in the bay area, and on the "bloomberg businessweek" app. carol: in this week's special issue, we turn to the economics section and the european central bank. mario draghi is in his final stretch. but before he ends his term as president of the ecb, he may do something he has never done before -- raise interest rates. jason: undoing more than half a decade of stimulus might come just before his exit at the end of october. here is cristina lindblad. cristina: one of the most anticipated things is the end of mario draghi's term, which happens at the end of october of next year. he will be in that position for eight years by that time. he has not raised rates once in that time. and he actually began by lowering them. so we anticipate that, by that point, at the end of his term, what people are looking at now is what is going on in italy, which is an embarrassment for draghi, because it is italian, but basically rome is having a fight with brussels over its deficit targets in the budget. so if that explodes, if that rekindles fears about a debt crisis in europe, all bets about an interest rate increase are going to be off. carol: but mario draghi -- being head of european central bank, in the story, it says it is one of the juiciest stories in your land.

so we anticipate that, by that point, at the end of his term, what people are looking at now is what is going on in italy, which is an embarrassment for draghi, because it is italian, but basically rome is having a fight with brussels over its deficit targets in the budget. so if that explodes, if that rekindles fears about a debt crisis in europe, all bets about an interest rate increase are going to be off. carol: but mario draghi -- being head of european central bank, in the story, it says it is one of the juiciest stories in your land. cristina: it's a powerful stepping stone. one of the things that draghi proved -- there is a governing council of 24 people on it. basically, it includes all of the central bank presidents from the countries that use the euro. but he proved that this is not a

council of equals, that he definitely exerted a lot of power and was able to quell some of the rebellions going on inside, notably from germany and some other countries, opposed this huge bond buying program that he started. so he proved that he was able to exert pressure. he used different tactics, and he got his way. this is why all investors are looking at who will fill his shoes. carol: is there any speculation about who might fill his shoes? cristina: well, we know it will be a central banker. most likely -- now that there are a couple of candidates knocked out of the race -- and it is most likely going to be from a country that can say it is in northern europe. that includes france. because it is sort of not a formal but an alternation of power from north to south.

carol: speaking of tests, you have to talk about what is still going on in the u.k. they are still trying to figure out the terms for brexit. it is still ongoing. bank governor mark carney, what kind of predicaments he find himself in? cristina: there is no playbook for the situation that the bank of england faces next year. we saw a bit of a preview after the referendum, the international reaction. there was a drop in the pound. and there was a small market panic initially. so if there is not a deal that specifies some sort of transition, i think, by the time the march 2019 deadline rolls around, i think that the bank of england will be a sort of first responder in any crisis that happens then. so it will have to -- carol: so the economy starts to wobble in the u.k., he made have to cut rates or something? cristina: it will be difficult, because he will need to cut rates if he needs to shore up the pound.

he will have to take different tools to stimulate the economy. while, at the same time, shoring up the pound. it is going to be a difficult test. on the other hand, if there is a deal and things go smoothly, then he may have to raise rates, because the economy may need to be -- inflation pressures may need to be tamped down. carol: and he is due to step down in 2020? cristina: his term has been extended twice. we say he is due to step down in 2020. he may not. carol: we shall see. jason: coming up, cars and cannabis in the year ahead. carol: plus, mega listings -- investors expect more ipo's in any year the century. jason: it is part of our special issue, the year ahead. a special lead up to our year ahead summit. we will be speaking with industry leaders on the most urgent topics in the coming year. that is all day on november 28. carol: this is "bloomberg businessweek." ♪ [ phone rings ] what?!

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♪ >> welcome back to bloomberg businessweek. >> still ahead in this week's special issue, the year ahead. people in 2019. the $100 billion business fund and idea. >> speaking of ipo, 2019 is expected to be a mega year for mega listings. >> but first, the companies to watch in the year ahead.

with bloomberg intelligence and bloomberg world of data for nearly 2000 companies. >> for more on other companies that made the cut, we caught up with the editor behind the list. >> it's a list, not a writing, but it's an interesting list. i encourage people because lists can be offputting but if you >> dig into this one, you will learn a lot. it's alphabetical, not a ranking. energy companies, they pop up on this list. >> not surprisingly. every year, we see a new batch.

this year, we have several >> $23 billion acquisitions. maybe just about a month ago, that introduces several factors that are worthy of attention. >> it's a reminder, we spend so much time thinking about the companies that are disrupting our world, high tech. and rightfully so. it's a reminder that things like energy companies are still here, they still are a big player globally and there's a lot of reasons. >> exactly. those are the reliable companies year after year. speaking of dutch >> speaking of changes, we saw a bunch of that going on in 2018. board as a company we are -- where restructuring is still the story next year. >> exactly.

board is one of these company that has been on the list for a few years in a row. when we have those repeats, we stop and we say, has the story fundamentally changed? should be included again? the consensus among our analysts and our fabulous, very experienced reporters covering day in and day out in detroit, is, yes, there is a lot of pressure right now on hacking. this restructuring plan is not quite delivering as quickly as in structures -- investors might like. the focus that many other companies might have, they are putting a lot of stock, no pun intended, into their suv and pickup trucks. moving away from the sedan. their interest in the sedan is not what it used to be. they are playing catch-up. they are developing an autonomous vehicle for groceries. will this fundamentally bring about the changes investors are looking at? the ceo is not one of ours to watch, but he is still under a

bit of pressure. carol: cannabis industry we've talked about this year. dimitra: one of our sections focused on cannabis about a month ago. that was on the eve of canada legalizing it recreationally. one of our companies on our list is canopy. it's doing really well. it's a canadian company. we also have a tobacco company that is seriously moving into cannabis because of the opportunities there. carol: the cannabis industry is growing big time. we have the world's largest cannabis producer. we have a chart. canopy, we talk about growth, almost 557%. these numbers are off the charts. jason: is this translating into the stock price? yes. for more, let's go to taylor

riggs. we count on you for complicated charts. this is pretty straightforward. taylor: the bloomberg terminal is great for everything. over the last year, the stock is really picking up. you have almost 200% returns over the last year. share growth, recently 30%. 87% is another story. marijuana has started to become more socially acceptable. carol: it's amazing the run this stock has had. jason: thanks. carol: runs like that is why

canopy growth is one of our 50 companies to watch. jason: here is our editor, jim ellis. jim: the big driver has been legalization in canada. you saw constellation brands, the company that makes corona. it started with a small investment of $150 million, and now its invested $3 billion in a big cannabis company. the real money in this is going to be putting cannabis in as an ingredient.

that will take off. canada so far, only allows you to smoke it. it will allow you to put it inside edibles next year. carol: in china, we talk about what american manufacturers are doing. jim: it's the biggest market for electric vehicles, and cars. the way the u.s. used to drive the global auto market, china is doing that in the future. in january, they are adopting a system on emissions. to get them down, you will have

to have what is called new energy vehicles, and a certain percentage of output that's the cars you import into china -- they have to be that way. if you don't have that, you have to buy credits from other companies that have extra credits, like tesla. all of the global automakers are saying, i will commit to more electric vehicles, because i have to do it for china. california sets rules for emissions because it isn't so big. it forces those companies to green the rest of the u.s. carol: another hot topic is diversity, impacting global businesses in the year ahead. we talked to someone at the global diversity summit in london this past week who said diversity is good for business. >> in running our business, we

probably pour over the numbers from a diversity point of view. we really make this an objective to achieve. jason: still ahead, uber and lyft and slack are done with waiting to go public. they top a record-breaking lineup of 2019 listings. carol: we will be speaking with industry leaders at our year ahead summit on the most urgent issues in the coming year.

this is "bloomberg businessweek." ♪

jason: welcome back to "bloomberg businessweek." carol: join us every day on the radio at 2:00 p.m. to 5:0 p.m. wall street time. you can also catch up on our daily show by checking out our podcast on itunes and soundcloud. us online also find at businessweek.com and our mobile app. carol: startups have been spending more time on a questionable road to profitability. private companies. luxury that has kept investors waiting a long time for big names to go public, so here they go. jason: uber, left calais act, topping a lineup of listings that most american tech listings

of any year this century. >> uber, lift, slack, airbnb falls into the maybe pile. when you run the numbers there hasn't been more than three companies listed that have a valuation of bigger than $10 million since 2000. that is when palmpilot was lifting. it has been a really long time since we have had such a group of very, very large companies looking to those public markets. carol: speaking of, what are we talking about in terms of valuation? they are valued around $75 billion in private funding rounds. the banks that they haven't talking to started around $120 billion and i think there should those exactm over

numbers but it gives you a decent range between $75 billion in $100 billion in market value, -- franklyankly how huge. softbank mobile is going public and they might be the biggest deal ever. uber could be the biggest alibaba, maybe bigger than alibaba, with good reason. carol: so impressive you mentioned though that we haven't seen three or four tech companies go public at this magnitude in some time. kind of have to go but -- go back to 99 or 2000. >> but as the private has been so ripe with cash, so much as come from the venture capital they all want a piece of

the next big thing and now you have the likes of softbank and their hundred million dollars vision fund of writing multibillion dollar checks in some cases with companies able to get the cap -- capital they need to kind of exist. capital -- think the raise the capital, need visibility, or public shares are a good recruiting tool. they got the capital from the private market. really sexynkly places to work for employees. everyone wants to work for them and that last bucket of visibility, they have that, too. at this point it comes about as being mature and being part of a mature company. jason: in the hot seat for

japan's largest ever ipo? carol: it's because the biggest investor in his $100 billion business time is saudi arabia. >> he is the visionary behind softbank. until recently he was best known for killing it on alibaba. and yahoo! japan were two phenomenal investments that the his career and gave him credibility, if you will, to come up with this newer and even more grandiose idea. the $100 billion fund that would exist -- would invest in technology. this idea that he could build thisgh the vision fund universe. carol: he's going all in but he

also has some outside money in billion from, $45 saudi arabia, the sovereign wealth fund. $15 billion from abu dhabi. the gulf you raised $60 billion of that target. carol: a whole other scale. let's go back to the middle eastern connection in saudi arabia, specifically. interesting relationship considering everything that has gone on in the news of late. >> it was only a number of weeks jamal khashoggi, saudi journalist, exiled critic from the kingdom, was murdered in the saudi consulate in turkey. is fact that he was murdered indisputable. that has been established. who is responsible for the murder? that's the question. there is a lot of cynicism and

skepticism about that investigation as the turks point their fingers back at the saudi that's white is an issue for the fund, because of the close ties they established to the crown prince. carol: but he hasn't backed off of that? like there was a? . on the 23rd they backed out of the investment initiative, the three-day conference presided over by the crown prince in riyadh. carol: which when your ago everybody was there. >> i was there, in fact. -- you can't imagine names you can, of course, it's a matter of public record who was there, lazio she us son was there. -- matsoyoshi's

son was there. because of the killing in saudi backa, big standing ties down. the morning of was supposed to begin. at the very last minute, his son back to out and it raised questions about the fallout that there would be. saudi's backing up the commitment with the vision fund valuations in startup , the kind of thinking that was engendered by that decision and that decision alone. almost two weeks transpired where no one knew what would happen. while reporting earnings at a press conference, he put those concerns, not the other concerns, but the concerns for whether softbank and saudi's

would continue to do business together to rest by saying that he had a responsibility to the saudi people to continue investing their money and as a result, yes, they would continue accepting and investing saudi cash. andn: coming up, formula e the most exciting technologies in motorsports. carol: plus what's coming up on the summit all day here on bloomberg television and radio. jason: this is bloomberg businessweek." ♪

carol: welcome back to "bloomberg businessweek." i'm carol massar. jason: and i'm jason kelly. you can also listen to us on the radio. including in london and

the bloomberg business app. turning to the year ahead in luxury, and iconic u.k. businesswoman who understands ist market really well, she always thinking about that consumer experience and i sat for a fascinating conversation. >> generations of young people are demanding so much more than a sentence candle and a bottle of fragments with a running shoe. me, show meucate the world listed. demanding so much more, so it's that experience that goes back to what we were the human touch, with somebody who cares about purchasing the product. it's easy to sell one million bottles. it is. it's next harder -- much harder to sell the next half million.

how do it? building relationships. jason: she understands selling and understands that to keep them coming back you have got to take it to the next level. kicking off its fifth racing saudi arabia, formula e. when you think about formula one, think about the competitions, but the new all electric series is centered around the height and the -- the hype and the cars themselves. carol: very amazing. been aroundla e has for a few years and when it started, people were not sure what it would be popular, the love cars, the sexy driver, but it has really grown in popularity and are starting the new series in september. they developed a new one this

year, running out of batteries halfway through a race to get out and jump into another car, a pitstop whether we'll has changed, but this is more like getting into another car. iont now the lithium batteries can take them for the whole 45 minute race and the cars look totally different, they look the same. family raising company is allowed to trick it out a little bit, but we took a look at the car to see what it had in store. carol: does it sound like a typical racecar? >> it doesn't. it sounds more like a hornet, with a whizzing sound. they are allowed in the go on city streets, it's a little bit more raw, but it doesn't have a really throaty roar. carol: the new version, how fast does it go?

>> it tapped out at 170 miles per hour, not as fast as the formula one cars, but it can it hillary just as fast. sometimes it sets the trend for the rest of the world. >> some of that technology might make its way into mass-market cars, far away from big companies making super luxury speedy cars, but the -- this kind of stuff, the more people will think it's cool. carol: from a really cool car to a cool way of marking out, the trend of being able to do it in your home. devicel makes this crazy that you can believe hasn't been invented before, the screen with chewing handles on the wall that can be changed. you could be lifting a 25 pound dumbbell or pushing a 100 pounds

barbell and it is a machine making the change. you need all the equipment, which is completely incredible. "bloomberg businessweek" is on the news stands now. is a must whole issue read this week, the whole year ahead. carol: it sets the stage for 2019. and this conversation is in the magazine this weekend is taking its cues that regulate search and social media from the social -- from the regulation industry. jason: you talked to larry kudlow about this? thinks he could get the president's agenda done, they are hopeful. carol: i got a preview of the conversation that john gray and i will be having in the year ahead. and hasecently promoted

big ideas about the economy and investing next year. carol: lots of great conversations coming up. more bloomberg television starts right now. ♪

haidi: welcome to daybreak australia. shery: counting down to asia's major market open. haidi: here are the top stories that we are covering. rising tensions. enemies threaten a result -- we will. the u.