haidi: good morning. i am haidi stroud-watts in sydney. good evening from new york, i am ramy inocencio. sophie: i am sophie kamaruddin. welcome to daybreak asia. haidi: our top stories, caution is the watchword for the start of the trading week, futures indicating a lower open in australia and japan and hong kong. theresa may wins e.u. backing, although there will be no more talks if british lawmakers

reject the deal. carlos ghosn denying any wrongdoing at this hour. questioning has begun. ramy: let's see how things are shaping up for asian markets in this last week of november. sophie kamaruddin. sophie: caution will be the watchword as we start off the week, counting down to the g20 summit in argentina friday with meeting very much top of mind. we could get his towards the fed's tightening path, a jay , and fed meeting minutes. landslide win, stocks are off .25% after the two day rise. japanese markets are back online after the long weekend. carlos ghosn's future is to be decided as the board is to meet at 4:30 p.m. local time in japan

to vote on his position at mitsubishi motors. shares little changed but the kiwi dollar under pressure, slipping after third-quarter retail sales disappointed. it was the weakest reading since 2015 for retail sales from new zealand. on the calendar, not much that could drive sentiment. today we will get a flash meeting on manufacturing data for november but in the afternoon singapore will post figures for october. in hong kong figures are due at 4:30. haidi: easing into the week. sophie kamaruddin on the markets in hong kong. let's get you first word news with tom mackenzie. italy is hinting at a possible compromise with the e.u., signaling a new willingness to alter the deficit target. the goal of the 2.4% has been resolutely defended until now it need told reporters

not be set in stone. brussels says the budget breaks e.u. spending rules and could impose fines worth billions of euros. u.k.sa may is urging lawmakers to embrace her brexit plan after european union leaders signed off the deal. 27 other nations took less than 40 minutes to improve the agreement with theresa may saying it will go before the house of commons before christmas. is theficials say it best outcome for all sides and there will be no renegotiation if british mp's reject the deal. >> before christmas mp's will vote on this. it will be one of the most significant votes in many years. it will depend whether we move forward together into a brighter future or opened the door to more division and uncertainty. dealam in favor of this because this is the best deal possible for written. -- britain.

kingdom the united [indiscernible] unionthe european [indiscernible] closed the star -- a street in crimea. trait in crimea. pressure use all necessary measures to stop the ships from entering the water. there was an emergency cabinet meeting, and they spoke to nato and the european union. reports from japan say carlos ghosn has told prosecutors's he didn't intentionally understate his pay package at nissan. he denied all accusations of wrongdoing as formal questioning began. greg kelly also reported to be denying allegations, saying he

consulted nissan and the financial services agency regarding the remuneration. australia's opposition party leads the government it by 10 points. that will add to the positive proved -- positive mood for labor leaders, as the parties scored a landslide election win in victoria. some analysts expect the defeat for the liberals was partly a backlash against the august co up that toppled malcolm turnbull. 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 tom mackenzie. this is bloomberg. president trump could be facing another investigation after a top democrat on the house committee said he is planning to look into the president's ties to saudi arabia. let's get more from our editor ros krasny in washington. this is topical given the conciliatory tone he took in the

wake of the murder of jamal khashoggi and his defense of the alliance with saudi arabia. ros: president trump has kind of been an army of one in his stomach defense, and lawmakers on both sides of the aisle, republicans and democrats criticizing his comments. we have had republican senators bob corker, joni ernst, all coming out against the town the president has taken, but they trump verbally, but really it is the democrats who will take up the cudgel in terms of possible investigations in the house. that is what adam schiff was talking about. he is the top democrat on the intel community -- committee. he said is this driving u.s. policy in the gulf? he sort of said similar things about president trump in russia. democrats now in control of the

committees who have a chance to look into that. it is interesting some of president trump's own words could come back to haunt him. in 2015 he talked about how much he sells to the with saudi arabia. for $40 apartments million, $50 million, all kinds of toys. he said democrats are in , andol, they have more this could be one of the things at the top of their list. from saudi arabia to the southern border, there are reports that mexico has reached a deal with the united states but the mexican government is pushing back against this. what is happening? 100% no, but it sounds like these details that leaked out or were reported about the u.s.-mexican deal for the southern border might have embarrassed the incoming government of president lopez

over door, that perhaps he and his aides should not have been negotiating a fine policy move before they come into power. even though some of the officials from his government and confirmed this deal yesterday, today they were pushing back. we could get more clarity in the next few days but essentially the deal is one that would hold the central american migrants in caravans outside of the u.s. while their asylum claims are processed by u.s. courts. until now they have always been able to come into the u.s. president trump calls that catch and release. it is one of his signature --ues among even the bigger immigration. the president has a few things on his mind including his meeting with the chinese president in brass alloys to

talk about trade, but immigration is never far from his mind. he was on twitter a few times this weekend talking about the southern border, and some pretty dramatic scenes coming out of the tijuana side of the u.s. border being tear gassed by border patrol. it is ugly down there, and i think we can expect to see more of this disagreement or non-agreement with mexico and other things the u.s. make do including keeping border crossings close over the next few days. ramy: and for the next month, the government is sworn in and will take over, so maybe we will see clarity. ros krasny, thank you very much as always. shifting to a barometer of the u.s. economy and its health, cyber monday is here in just a

few hours with shoppers expected to spend a record $7.8 billion, on top of what was handed over on black friday. su keenan is looking at these massive numbers. let's talk about turnout. interestingly black friday and cyber monday are becoming more one and the same. su: it was a big survey that found out it looks like almost the same amount of people were planning to go online over the weekend is to the brave the crowds. ramy: i was one of them. the cold weather doesn't help. if we go into the bloomberg, it goes with a steady dramatic increase over the years, clicks to bricks, more people using etail commerce. let's look at the crowds that did brave the cold, another change is that rather than the shop until you drop frenzy to get the discounts on one day, investors realized -- and

shoppers, the discounts are spread out, there is no reason to go all in one day, and they overpreading purchases out into monday for the big discounts. we also find a lot of the retailers, brick and mortar, who innd in numbers -- enormous their websites to capture the online audience, what they experienced was breakdowns, glitches and overwhelmed sites. let's go into some of the boards of different retailers. here is a list of companies, the way they closed on friday, that had big problems with website traffic. it shows return on investment operations, there are still issues. we also saw stocks up friday even though it was -- some of the stocks that have been under pressure. let's take a look at those who were down friday.

reinforcing a lot of the retailers are not out of the woods even though statistics show for friday, short-term it could be a happy new year for the retailers. bullishne of the most forecasts from adobe, the u.s. will spend $124 billion online in november, 50% increase from last year. even that is good. su: it is not because as we go into 2019, these tariffs are going to have an impact on the retailers, passing on the goods. there is the issue of interest rates. how will that impact the sale of ? rs, homes that is a big concern, the trending down of spending that can really affect the economy. in the bloomberg, retail sales have been strong as consumer confidence has waned. this is the drop in consumer

confidence, but there is concern into 2019 that could change very quickly. haidi: enjoy the festive at he while it lasts. su keenan with a wrap of retail frenzy from black friday and of course cyber monday yet to come. e.u. leaders have agreed to theresa may's brexit deal but have already warned it cannot be renegotiated if the u.k. parliament says no. we are discussing how the brexit battle shapes out from here on. ramy: ahead of a key opec meeting, we have an interview with saudi aramco ceo. that is next. this is bloomberg. ♪ ♪

asia. this is daybreak i am haidi stroud-watts. inocencio.ramy saudi aramco's ambition to become a leading global refiner

and chemical maker aims to tap the oil industry's fastest-growing sources of demand while underpinning the kingdom's planned economic diversification. it is backed by $500 billion in investment over the next decade. the ceo spoke exclusively to bloomberg. >> we always look at the long-term. we never planned this on a short-term. , demand isur view healthy. we are looking at between 1.3 and 1.4 percent of additional demand. next year will be also the same in terms of additional demand. crossing 10 million barrels. there is a lot of demand in our industry. we are not looking only at oil. we are looking also at gas, lng, and chemicals, so it is a lot of growth potential for saudi

aramco as we are trying to balance our income stream. a lot of growth potential. reporter: let's talk about one of the projects you are excited about, the biggest acquisition of its kind in the history of the kingdom. you are considering a wide range of financing options. we understand that much hinkley -- including bonds issuance. when would you like to make a decision? ofwe are in the middle negotiating now, due diligence fund.he investment they own 70%, so it is a process currently ongoing. as soon as we complete negotiation with public investment, i would hope that would happen soon, we can progress to the next step which is hitting the different requirements and countries. there is an antitrust

requirement before we can close and it requires certain times for it to close. yousef: let me run you through a theory making the round with key analysts. you have the acquisition of this state which makes personal -- makes sense from a business perspective. you beefed up upstream and downstream positions. does that make downstream listing only a possibility? amin: at this stage we are looking at integration more than anything else. the company that is both upstream and downstream with more integration would be worth much more. it will add value. towould be difficult separate the two because they go together. if you look at any refining today, what are we doing? if you look at assets in total, $140,000 bet -- barrels.

did we do decently? $10re putting almost million to expand. look at our assets, basically in the u.s., we are putting all integrate this to petrochemical. you are looking at all of these assets. when we look at our crude oil to chemical, basically you are looking at more integration. a company that has more treatment upstream will be able to balance the volatility in the market. yousef: there is skepticism among investors to say about your ipo ambitions because it has been delayed a couple of times. 2021, is that firm? could it happen sooner? highness his royal

committedd, we are for the ipo. his excellency the minister of energy also said we are committed to the ipo. the government is committed for sure. it is about timing. discussionr, the before that, the ipo would have happened. yousef: second half of 2018. amin: in the first half of 2018 we talk about act -- acquisition of a major stake of a public investment fund. these two cannot go concurrently. you cannot list while you are going through a major acquisition. sense for a lot of us, and we need to do it now. toyou are shifting 2 million 3 million barrels of crude to chemical. yousef: the kingdom wants to

bring in foreign investors. the murder of jamal khashoggi has dampened sentiment. what is your message to foreign investors. amin: i think there is a lot of investment that is coming into the kingdom. billion, so a wealth of investment with our partners. tomorrow you will be attending [indiscernible] program, forum, and we are finding more than 30 deals with -- worth $27 billion. , $60u put the two together billion agreement investment we have signed between us and our partners. yousef: so you are not worried about longer-term damage from the murder of the journalist? amin: you will see tomorrow the

kingdom will add more than 3000 participants, 150 ceo's from in tandem and out of kingdom, 80 ceo's from out of saudi arabia. out of kingdom. aramcothat was the saudi president and ceo speaking to yousef gamal el-din. readyent trump says he is for talks with xi jinping. we talk a look -- take a look at prospects of trade war truce. this is bloomberg. ♪ this is bloomberg. ♪

asia. this is daybreak i am haidi stroud-watts in sydney. i am ramy inocencio. president trump and president xi jinping indicated they are ready for a hugely anticipated meeting at the g20 summit in argentina. tom mackenzie joins us from beijing. what have we been hearing from

at least the chinese side in the run-up to all of this? ramy: we had -- tom: we had a briefing on friday from officials who were optimistic leading up to this. they told us the ministers are the officials from the foreign affairs ministry, the officials were working together pretty closely on both sides, which echoes what we heard from larry kudlow said officials were working at all levels ahead of this meeting. chinese officials hope at the meeting but it will go smoothly. they also say they were prepared to meet the u.s. halfway in terms of concessions. it was also interesting to hear from the vice commerce minister, saying he thinks the u.s. is looking ahead or is prepared to come to some kind of agreement. that mirrors what we heard from president trump as well who said he thinks china wants to make a , and i quotely

from president trump there. so the mood is broadly positive from the chinese and u.s. sides. even the posturing leading up to this debate has continued with that report out of the trade represented of office in the u.s. highlighting what they say are continued violations of intellectual property rights and tech transfer rate on the chinese side putting out a partial list of concessions they say they could make to the u.s.. one of those involved rehashed agreements from the past. haidi: what specifically in terms of a wish list would be top of mind for investors? a couple of things. one would be any sense we will get a framework that will lead to continued substantial negotiations between the two sides. the other is any suggestion that the proposed additional tariffs that could kick in in early january would behold -- put on

hold or frozen. that would be seen as a positive. whererd from bnp paribas analysts were saying that should those kind of things come out of this meeting, it would likely lead to continued dollar weakness which would be positive for em assets. it will come down to some extent whether or not the chinese come to the table with something substantive in addition to what they have talked about in terms of concessions or if trump is willing to make and soften his demands because of concerns about volatility we have seen in the markets. it can be a combination of those things. certainly investors are paying a lot of attention to this bilateral meeting between president trump and president xi. make or break week. tom mackenzie covering that story out of beijing. theresa may and that you making a deal on brexit, but now the next hurdle, it is up to the

british parliament. moves ahead or brexit goes back to square one. brussels say there is no scope for renegotiation. this is bloomberg. ♪

a.m. int is 10:30 sydney, markets trading for 30 minutes. islook at how the asx trading, down .8%. it was a holiday for the session . the s&p 500 falling into correction territory, the worst thanksgiving week performance when it comes to start markets since 1939, so certainly questions whether this is healthy for the span of this decade long time of gains or whether it perhaps or tens economic doom and gloom to come. ramy: we will know over the next month or so as we get catalysts for possible change. 6:30 p.m. in new york, looking

across the manhattan skyline. s&p futures looking positive for now, up .3%. fallingand the doubt deeper into negative territory for the year, giving up gains from the past week. the nasdaq is clinging onto gains but only have percent. -- a half a percent. we know about the technology complex, them seeing a wrote -- rout all the way through tonight. haidi: you are watching daybreak asia. let's get you to first word news. taiwan's pro-independence leader has just over a year to win back public support if she wants to avoid becoming the island's first one time resident. her democratic progressive party suffered a heavy defeat to the china friendly party in regional

elections. traditional strongholds have been lost. the next presidential election is in january 2020. u.s. customs have closed all entries in both directions at the border crossing with tijuana , and the associated press is reporting tear gas has been fired at migrants attempting to breach the fence. thousands of people are camped in tijuana and the city cannot cope. mexican authorities have echoed president trump calling the caravan and invasion. nasa's latest probe is on track to touchdown later monday after a marathon flight in what scientists call seven minutes of terror. probe decelerated from 20,000 kilometers per hour to per hourt kilometers when it hits the atmosphere. nasa control cannot intervene

in. it must fly on its program. a record it for asian art may be set with the option of a rare thousand-year-old scroll, depicting a tree, bamboo shoot and eight rock. it is inspected to fitch $60 million u.s. in hong kong. it is one of two known to exist by the 11th century song do master.ster -- dynasty he is often compared to leonardo da vinci. 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 tom mackenzie. this is bloomberg. ramy: let's check in on australian markets with sophie kamaruddin. i am seeing some red. sophie: it is the color for sydney stocks. ae asx 200 is up, heading for third day of losses. the aussie dollar holding steady

at the start of the week that will feature construction and capital spending data for the third quarter and private sector credit for october. and then we are getting divergence as to where to go from here by the aussie share market rate morgan stanley seeing more downside risks ahead, downgrading shares to underweight while goldman is cautioning investors to not be too defensive with no recession on the horizon seen frost really. producers are under pressure after crude prices posted the biggest mosque in three years, brent trading below $59 this morning. checking aussie bonds, we have inching higher with the 10 year dropping to 2.6%. futures are steady as we look for a 10 year yield to edge closer to 3% with investors waiting on the fed's tightening path. this week will feature a speech from jay powell and meeting minutes that could get guidance.

and this morning we are seeing moves in the pound, edging higher on the brexit deal, but sterling hasn't made much headway, although strategists are seeing 135 should the u.k. parliament give the yes. ramy: thank you very much. let's continue that story because we know theresa may definitely is taking her authority on getting -- staking her authority on getting that passed after it was formerly approved by the e.u. -- formally approved by the e.u. says there will be no more voting if the mp's vote it down. kathleen: theresa may saying she is going home, and she looks forward to taking her campaign to get this brexit deal passed, which she has staked her leadership on. she feels strongly and the e.u.

agrees with her this is the only deal possible now. she says 70% to 80% of the u.k. wanted. here is what she said earlier. >> before christmas, mp's will vote on this. it will be one of the most significant votes in many years. it will depend whether we move forward together into a brighter future or open the door to more division and uncertainty. kathleen: many leaders of e.u. nations support the deal and theresa may like the dutch prime minister, saying if there was anything better than this deal, theresa may would have gotten it. she was stubborn and tenacious. jean-claude juncker, the president of the european commission thomas says this is the only choice. here is what he said. ,> by rejecting the deal thinking they would have a better deal, they will be

disappointed in the first seconds after the rejection of this deal. kathleen: those who may be testing jean-claude juncker's resolved, the eurosceptics, they oppose this brexit deal, saying it keeps the u.k. under the e.u. too long. --many saying they are theresa may said i am not sad but did not answer questions after -- at the press conference by reporters about what happens if this deal gets voted down, will she step down, will there be a general election. she is not ready to talk about that. she is talking about how important this is and why it needs to get done. haidi: weeks of campaigning ahead. 500 daysomes down to of negotiations, 500 pages in this document, one thing that

relate represents the crux of the opposition to this deal. kathleen: a couple of big things they decided on took some time but the rights of citizens in the e.u. to live in the u.k. and vice versa, you can that -- take that off the list. the cost of the brexit, 39 million pounds, probably more than the u.k. wanted to pay, they say they shouldn't have to pay anything, but the irish .order is where the buck stops the idea of a backstop. they cannot decide how this is going to work. northern ireland is part of the u.k.. the rest is part of the e.u. and they have a border they don't want to turn into a hard border. this backstop kicks in. it would mean all of the u.k. stays in the e.u. customs union or ireland follows single market rules. particularly not about it, mp's part of the democratic unionist party, arlene foster is their

leader, she is calling for a third way, a better deal. the backstop doesn't cut the mustard you could say with her and her colleagues. is suddenly all kinds of demands popping up. french president macron was the latest to say i will not vote for this unless the british are willing to give up some fishing rights to french fishermen. and then there is concern more and more bespoke requests are going to be made of the u.k., but for the time being, the most important thing is it has to be a unanimous vote. that is why this has to be important. jean-claude juncker showing tough leadership. let's see how this pans out in the days and weeks. it will come to a head, and the first set will probably come to the house of commons and then the u.k. relevant voting on this. we shall see. haidi: the latest on brexit in

new york for us. the feature that future of mitsubishi and nissan hangs in the balance. the talkssn's continue. stephen engle is here. brand-new week, where do we go from here? stephen: we have heard from carlos ghosn, through the nhk. they are reporting carlos ghosn is reporting any wrongdoing. he remains in custody in a detention center in tokyo along with a former -- fellow board member, the representative director on the board. the two of them being ousted late last week, thursday as the sun voted to oust carlos ghosn s -- thursday as nissan voted to oust carlos ghosn as chairman. at four: 30 p.m. local time, mitsubishi, the third and

smaller member will have their board meeting. we heard last week from the ceo whoitsubishi motors basically gave verbal endorsement to carlos ghosn, but a lot has transpired including a unanimous vote from the nissan board thursday night. they will meet later today, 4:30 local time tokyo to vote whether to keep carlos ghosn as chairman of mitsubishi motors. nissan owns 34% of mitsubishi motors. ceo of nissan who supposedly led this as some against theup carlos ghosn, but on the back of allegations of misconduct, which have been handed to the tokyo prosecutors office. they have not charged him yet, but this man will lay his case and update global employees of nissan later today as well.

bit -- little ramy: a little bit more into the alliance. how stable or not is it? stephen: it will be interesting to see how mitsubishi votes. if they oust carlos ghosn as well, that it is up to renault and the french government, how will they perceive -- proceed. the renault board decided to keep him on as their ceo. they named him -- there coo was named interim ceo. they want more information on the alleged crimes of carlos ghosn. the alliance is a separate entity itself. it is domiciled in the netherlands, and they will have a meeting this week, and it will be interesting to see whether the nissan ceo shows up for that. it would be the first time he would be meeting with perry velarde as well to decide a path

forward. the carlos ghosn is still the chairman of the alliance oil saw, is the -- the other man is the vice chairman. it is heating up, the future role and what the future french government and renault will do going forward. stephen engle breaking down the breakdown of something major in the auto industry locally. could 2019 bring a reprieve to some of the world's worst reforming currencies? we will have the views of pine ridge investments. this is bloomberg. ♪

ramy: welcome back. this is daybreak asia. i am ramy inocencio in new york. haidi: i am haidi stroud-watts in sydney. struggling commodity trader noble group has extended its deadline for the marathon restructuring to december 17 to

address military concerns with an official investigation into its finances. their authorities extended a key waiver to allow for the delay seen as positive for investors and likely to bring restructuring to a halt. fusion of malaysia said the 1mdb word meeting was erased from an official report. the current auditor general said it was done at the request of the principal secretary from the former prime minister. this happened before it was presented to a parliamentary committee to prevent the opposition from using operation -- information against the government. aidi: bloomberg is being told u.s. hedge fund that was the source of an $18 million loan they have -- strategies including distressed investing and analysts say the deal could be another sign that

this company is still struggling. they have already been ditched by bank of america and goldman byhs and cut into junk moody's. you can get a roundup of stories you need to know to get your day going in monday morning's edition of daybreak. you can go to dayb on your terminals and also available on the mobile in bloomberg anywhere app. the cleared this side of deal for brexit. you can get news on industries and assets you care about. this is number. ♪ ♪

ramy: welcome back. this is daybreak asia. i am ramy inocencio in new york. i'm haidi street -- haidi stroud-watts. some of the worst-performing currencies could get a reprieve in 2019 with the worst of the route group being the turkish , coming tondia rupee an end now.

a selloff began with climbing treasury yields and the resurgent dollar. joining us out of singapore is a senior vp at fixed -- and fixed income portfolio manager. i want to get straight into our church. even as we have seen the selloff intensify in u.s. equities and finish that terrible thanksgiving week with the s&p falling into correction territory, you haven't seen sensitivity when it comes to emerging-market currencies. they have been less affected by the general kind of investment sentiment mood. you can see the divergence we are starting to see. the s&p 500 going their separate ways with msci. g20,ere positivity out of is that going to lead to a weakening of the dollar, less haven demand and more of the green light for em assets? perhaps it is not a semblance of positivity but i would say

stabilization. what we have seen in the second quarter and third-quarter of this year, there was a confluence of factors that negatively impacted the emerging markets growth and currencies, whether it was the monetary policy with the u.s., stronger dollar, higher oil prices, geopolitical noise, trade tariffs particularly for asia. what we have seen since then is valuations have adjusted a bit, and we have seen credibly -- credible policymaking. we have seen hikes from the bank of indonesia, which were defensive in nature. at the same time some of the developed markets that were developing concerns about the fact we might be too advanced in terms of economic cycle, we have seen the stabilization of some of the emerging markets and outperformance of the emerging markets versus developing markets which, given the developing markets were more

advanced pricing in the risk of as opposed to developed markets. we can see a good case building up in terms of stabilization if someone goes to emerging-market currency, particularly those that had it -- strong external funding and were impacted the second and third quarter. in terms of the other side of the coin or what e.m.'s decide to worry about and what next, after the past week, and we will get more fed speak this week, are you assuming we will see a 2019 when we have a more dovish fed and a couple of hikes and then a pause by the middle of next year? yeah, i think there is a growing narrative the fed might at some point in 2019 stop hiking, especially as we get to the 3% level which is considered to be the neutral level. i think the jury is still out on this.

one of the risks we might be seeing in 2019 is in the past, call it 10 years, we have been in a goldilocks scenario where the monetary policy was accommodated just because growth was not that compelling and inflation was low. we are getting potentially to a stage where there is a strong desire by most central banks, certainly in the fed ahead of others to monetary -- normalize monetary policy. the goldilocks scenario, where we have economic growth which is decent enough, inflation not really in the territory, enough of the reason for the policy to normalize. risks fore of the 2019, especially the single most important change in the investment landscape that happened in 2018 was the fact of financial conditions. this is what is driving the market. hop into theto

bloomberg terminal. as we go into the emerging function, this is year to date. we are seeing the argentinian peso down 50% year to date. based on what you and haidi have been talking about, do you see any picks here that would move better, higher, faster than others? we have been talking about the turkish lira being idiosyncratic. omar: yes. for the worst-performing currencies you mentioned, turkish lira, india, indian rupee or the indonesian rupiah, the common thread among all of these is external funding vulnerability. these stand to really underperform because of idiosyncratic reasons as you mentioned but also because they are vulnerable when it comes to funding.

if we continue to see tighter financial conditions in 2019, i wouldn't discount weakness. having said that, we think a lot has been priced in. there has been response by the policymakers in most of those countries which are leading us to think we might see some stabilization, especially if the fed starts to mellow down its hiking into next year and there is this belief the fed might stop at some point in 2019 when they get to be percent. jenna: very quickly -- ramy: very quickly i want to throw up one more chart. folks are also talking about the powell push, maybe a pause, how might this affect what is happening with the yen? omar: i think the seven level is the psychological. our view for the renminbi is we will see weakening because of

monetary policy divergence and also another reason which is not that will discussed, but we think it is impactful when it comes to the currency, that the current account situation in china has turned more negative for the first time in essentially its economic history. something that is driving the renminbi gradually weaker, it is fundamentally justified by the renminbi should be weaker. stevan is an important number, but is only a psychological level. we think we might get there. omar slim, looking at the emerging markets complex. thank you. let's get a check on the business flash headlines. allianz has won the right to be the first foreign company to launch a holding in china. they can launch in one year. that is according to a statement from the insurance regulator. they will open the unit in shanghai. xi jinping has pledged to

improve market access to encourage foreign investment in china. haidi: the sunday telegraph says british airways is preparing a bid for fly be. -- virgin atlantic is also in discussion for a potential takeover. flight being said it was in talks with several parties because it is facing financial stress from rising oil prices. ramy: disney broke the north american box office with the recrn of reckitt ralph -- it ralph. ralph breaks the internet took in $56 million in the u.s. and canada and another $42 million internationally to help the five-day holiday total across the $300 million mark for the first time. haidi: take a look at asian markets so far in this trading session. bit of aut of it -- a

down day, the s&p down emily: here in sydney. kiwi stocks extending losses. we are seeing a return to trade for japanese markets for the new week on the lower side of things. this is bloomberg. ♪ this is bloomberg. ♪

haidi: good morning. the major markets have just opened for trade. ramy: good evening. i'm sophie kamaruddin in hong kong. welcome to "daybreak: asia." haidi: our top story, caution at the head of a new trading week. may wins eu backing pre-brexit. ther