>> looking to daybreak australia. sophie: and i'm sophie kamaruddin hong kong. we're counting down to asia's major market open. haidi: here are the stories we are covering in the next hour. beijing threatens to retaliate if -- the imf repeats his warnings about trade. the u.s. china spat threatens global growth, jobs, and wages.

and oil jumps. saudi arabia admits opec may have waited too long to react to the market. shery: let's get a quick check of the markets close on friday. the u.s. stocks worst week. losing more than 1000 points. utilities the only sector that gained ground. the defensive sector of course. we also had big tech names like netflix losing at least 3% on the nasdaq, which fell 3%. we had seen u.s. stocks a little on friday as we saw a softer than expected u.s. jobs data, but we got more hawkish commentary. take a look at what wti has done for the week. we saw it gain more than 2% in the last trading session as we got opec plus to agree to a cut of more than one million barrels a day.

let's see how things are looking for asia. a bit of weekend news for investors to divest. lose we saw stocks in asia 1.5% last week we are set for further declines this monday. futures down across the board. stocks in wellington off by 4/10 of a percent. we got data this morning from new zealand. manufacturing volume sliding while sales picked up 2% on a quarterly basis. besides the slowdown in china's exports and developments around the arrest, today we are waiting for on the radar the potential indictment of carlos ghosn. and apple suppliers will be in the hot seat once again. this, as japan reportedly is the latest to cut production on slowing demand. softbank, a big one to watch. --ping an ion china's

today, japan will post its final read on gdp and wider contraction is anticipated. later this morning australian home loans for october are due. another monthly is declined -- monthly decline is expected. prices is prompting them to warn australians to prepare for a severe collapsed in the housing markets. shery: we will be breaking those numbers on daybreak asia. now let's get the first word news. imf is warninghe about trade tensions saying the dispute between the u.s. and china threatens to derail the global economy by undermining business confidence and raising the cost of living. forecasts in october of the first time in two years blaming the trade war and threat to emerging markets. chinatakes both u.s. and

to be determined to reach closure on this. it is finally important because trade is a major engine for growth. trade if it is damaged, threatened, is going to affect growth. less growth, less jobs, less investments. are in the business of creating jobs will lose confidence. su: china's trade surplus with the u.s. hit a record in export growth as slowed on waning demand and uncertainty about the trade war. the surplus was more than $35.6 billion. it was driven by a near 10% rise in exports and a 25% decline in imports. other data showed china's factory inflation slowing again, while gains in the consumer price index moderated. oil jumped as the opec plus group delivered bigger outcome curbs then expected, defying

president trump's call. the rest of the alliance ended agreeing totalks by remove 1.2 million barrels a day from the market in the first quarter of next year. most of the reduction will be shouldered by saudi arabia. forthcoming.ry moremped a lot of oil, than the market needed at the end of the day. that inventories building to dangerous levels at an alarming rate. if anything, we are probably reacting a bit late and conservatively. su: inventories building to dangerous levels at an alarming rate. finally, british prime minister theresa may is entering the most important week of her career, with projections her brexit deal is dead and she will -- faceodafone -- post a vote of no confidence.

brussels has currently said the current deal is the only deal on the table. the government insists there is no plan to delay the vote. global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. china's foreign ministry has summoned the -- the ministry threatening further action if needed. our chief north asia correspondent stephen engle is following developments. in beijing reacting strongly and not backing down. stephen: no, and this will not defuse the tension that has been building up on the trade front between china and the u.s. this is likely to escalate that on the diplomatic front with the foreign ministry summoning the

u.s. ambassador to beijing to the foreign ministry yesterday. i talked to a number of u.s. ambassadors to china. when they are summoned they usually go to the foreign ministry, they take their lashings, and they take their marching orders from the chinese back to the state department. she probably had an awkward afternoon. saturday,follows on china summoning the canadian ambassador to china as well for perhaps another verbal lashing. and china is taking it further saying they would take further action if necessary. arrested meng was december 1 in vancouver on the orders of u.s. authorities for allegedly violating sanctions on selling technology to iran. china's foreign ministry again in a statement said the actions have violated quote, the legitimate rights and interests of chinese citizens and are extremely bad in nature. in response to the summons of the canadian ambassador, they

said it was vile in nature and .hreatened canada with quote, grave consequences so this is definitely ratcheting up tension. canada really stuck in an awkward position. justin trudeau saying this is a judicial process, not a political decision. at this point meng is still in canada. what is her legal status? stephen: she is still in jail in vancouver. what we're hearing is that so far, a motion for bail has not been decided upon. but prosecutors for thefar, the crown in canada have argued that she is a potential flight risk, and they are her from -- and therefore have asked not to grant bail. that core case will continue monday vancouver time. right now she is in legal limbo because extradition between china and the west, while it is

a long-standing pact, could take months if not years to happen. haidi: in the meantime we have the trade war as well. both sides grappling to work out the best way to deal with this. stephen engle with the latest. president trump's top trade official insists this is a separate case from trade. robert lighthizer spoke on cbs's face the nation. >> it is my view it should not have much of an impact. i can understand from the chinese perspective how they could see it that way. this is a criminal justice matter. it is totally separate from anything i work on or anything that trade policy people work on. for us it is unrelated, it is criminal justice. we have a lot of very important issues. have serious people working on them and i do not think they will be affected by this. haidi: our bloomberg news editor joins us now. the trade team attempting to

separate church and state here. any grounds of hope? time just as we were getting some optimism over relations. ros: it did not seem to me from what the ambassador said that you can really dismiss the rest of ms. meng as a criminal justice matter. markets are skeptical about separating the two. we had president trump's in-house trade advisor talking about, really not taking ownership of the drop in the stock market, saying it was the federal reserve's fault. given really any ground by those men or by larry kudlow, the white house economic trade tension the is something to be concerned about. it just seems like it is difficult to separate the huawei

activities and a criminal justice matter, especially when the trump administration has used, they have put the two together. they have constantly put china's trade practices and business of spying together in one big bucket. at the white house we are starting to see some changes in staff. we are now hearing the latest, the vice president chief of staff will not be replacing john kelly. ros: that is what we hear. breaking news in the last hour. earlier today it seemed like mike pence's chief of staff have the inside track. trump had been talking with him. but it seems like he has some personal issues he cannot get over. he wants to go back to georgia and be with his family. he has another pretty good job

lined up and cannot give president trump that two-year commitment. some names we are here now going back to the prior segment, robert lighthizer, mark meadows, the conservative lawmaker from south carolina, and mick mulvaney, the omb director who is also a former congressman, seems like someone who could really work well as a go between the white house and congress. haidi: thank you so much. we are watching for this revolving door story to come through with some confirmation of new staffing at the white house. we're getting some lines through. a question and answer session taking place in sydney. saying the next rate move is up, but not anytime soon. the next rate move could be up rather than down. we knew that before, but saying that is not happening soon. also saying we started to see wage growth pickup in australia. households need to be ready and

willing to pay higher rates as interest rates start to pick up. also saying the central forecast is still fairly positive. his comments were in the context of a speech and should not be taken out of context. thatcomes as more warnings the economy which is had a long stretch of the six years of growth rarely end -- because you to see data coming through in australia. still ahead, crude surging as opec agrees to a larger than expected production. we take a deep dive into the deal later on. shery: next we are to the new trading week. this is bloomberg. ♪

on wallhe week ahead

street is volatile. the s&p 500 has had two 10% corrections within a matter of months. a big concern is stocks are starting to price in slowdown and gdp. su keenan is here now with a look ahead. of course it doesn't help when you get fed officials with more hawkish comments suppressing the markets. su: and trump likely to tweet more. most people are bracing more for a rough ride ahead. gtv is where you can find our charts. 500,,now we had the s&p on the top, bounce back since the worst selloff since 2011, the fact we are seeing a continued drop, particularly in the last hour of trading with a lot of action, is leaving a lot is concern on the street. how we open on monday and how we go forward. let's take a look at the snapshot. for the week we had the s&p 500

lose more than 4.5%. nasdaq lost almost 5%. heavy losses in the nasdaq 100 just on friday alone. a loss of more than 3%. notice the philadelphia semiconductor index. this is a concentration of tech stocks and these were the momentum players of the year, down almost 4%. if we go into the big likely to ,ove stocks, we have a bunch the focus is likely to be sexual misconduct report on the departed ceo les moonves. adobe and cosco and dave and buster's coming out with earnings. that could definitely move the needle. other stocks in focus include facebook and hillebrand, which had announced big buyback programs. caterpillar, which they say are due for a bounceback. papa john's, they may have new interest after the last interest backed out.

finally we have a oil which continues to be on a roller coaster, although traders say the most recent cuts are supported near-term. shery: thank you so much for a check of the markets. we a closer look at how expect the week to kickoff we turn to manager -- great to have you with us. su had to kick things off with volatility. is this going to be depressing returns for the year ahead? guest: we think it likely is. on a relative basis we are years off many double-digit returns. we think as investors look ahead, it is safe to conclude that we are going to see continued second-guessing of where we are. we think investors will continue to question how strong growth will be going forward, whether or not the recovery can continue. willally we think that lead to increased volatility, lower total returns. a think as a result is not

matter of timing the market or bailing out of stocks or anything. it is more just making sure that you have maybe a little more of a defensive allocation that maybe you had in the past. shery: another key question has been what is leading the selloff. we have seen trade headlines but also just the fed continuing to tighten. we are hearing from the white house trade advisor saying he thinks it is the fed. >> i think that is a false narrative in terms of the impact with tariffs on the start market. my view is this is strictly an interest rate affect. i think the fed went too far, too fast. what we saw basically was asset reallocation from the stock to the bottom market. we have had some impact on the housing market in terms of the dollar. it is too strong now and that has exacerbated our trade deficit. this is a normal adjustment. --me, this is not even shery: what is weighing on investor's minds?

alec: policy uncertainty. we are certainly getting policy uncertainty on the monetary fund from the fed, but a lot of questioning about how quickly they will tighten going forward. but undoubtedly we are also getting uncertainty in terms of trade policy. i think it is a combination. whenever you see this kind of violent volatility in the markets on such a consistent basis they after day, it is safe to bet there is no shortage of things that you can really attribute it to. what it all adds up to is this uncertainty clouds the forward theings outlook, reduces visibility on 2019 fundamentals, and makes it harder for investors to value equity. as we all know, markets do not like uncertainty. as long as that hangs out there, i think investors are likely to require bigger discounts in asset prices in order to get interest renewed again, in order to get interested again from the long side. haidi: it is different to assign

one scapegoat, but no doubt it has been a potent combination. you are looking at the fed side of things in terms of uncertainty we are getting through from communications have been pretty good. next year every meeting is essentially live. do we end up getting more volatility? if you look at this chart, look at the euro curve. possibly just one hike. is the market getting ahead of itself in terms of presuming that financial conditions will be looser next year? we have seen a big repricing in central bank fed tightening in particular over the last few weeks. clearly, the markets may have been a little too hawkish. we had some fairly dovish comments from chairman powell. we have had some weakening economic data. we had a big drop in oil prices. not surprising to see the market reduce their expectations for

2019 fed tightening. have they gone too far? we will have to see where the data takes us, but as i said, there is quite a bit of macro uncertainty. even if people feel fairly comfortable with where the fed is, there is no shortage of other issues that can drive volatility and cautious sentiment. haidi: does the change in the way that jay powell and the fed handles meetings and policy announcements next year every month, working munication, does that naturally give rise to more volatility? alec: i think at the margin it does. we have been accustomed to thinking if there is not a press conference, it is unlikely we will get a move. to the extent we get more transparency, more communication, it opens up the potential for speculation about more policy movement. so, from that perspective, it could fuel additional

volatility. i think the bigger theme is we are just very late in the cycle. whether it is the fed, trade, some other issue, i think investors are going to continue to come back to questioning the strength of the global growth impulse, just because of how far we are into the cycle around the world. as a result, we think you will have a more volatile year in 2019. haidi: alec, really appreciate your time. ofh a great period uncertainty at the end of the year. alec young joining us in new york. still to come. this is bloomberg. ♪ is bloomberg. ♪

shery: uber joined lyft in filing for an ipo. confidentiald a application for what could be one of the top five biggest listings of all time.

what do we know about this? michael: absolutely. it could be one of the biggest of all time. it would be based partly on uber's valuation, which is a matter of debate, and will be determined by the markets. uber's valuation could be $120 billion. the actual idea would be some percentage of that. that could put it past the all-time ipo record of alibaba which was $25 billion in 2014. regardless, it will probably be not that far behind. shery: why do it now when equity markets are in turmoil? michael: uber has been under a lot of pressure for a long time by investors who are ready for the ipo to happen. it has been years in the making at this point. similarly to lyft. i think there might also be an

appreciation for the fact that the markets are somewhat in turmoil, but maybe that turmoil is going to be here for a while, so why not go through with it now. in some ways, just hope for the best. of course uber and lyft would only be a couple ipo's we could see next year from these big tech companies. michael: absolutely. regardless of the market turmoil, in whatever will happen on the consumer side as well, there are companies that have been piling up money looking to go public, perhaps behind uber a n dlyft you would have airbnb, with a valuation of about $30 billion. on the lookout for bankers right now for its ipo. its current valuation would be about $10 billion.

there is a lot of pent-up. shery: we are out of time. next, we will discuss brexit. this is bloomberg. ♪

haidi: it is 9:30 in sydney. looking at a muted start to the trading week after the s&p 500 rolling over a third straight session, the worst week for the s&p since march, the huawei drama continues to add fuel to the fire of the trade war concerns that there won't be a resolution after all. seeing futures down .5% going into the open. shery: i am shery ahn in new york. you are watching daybreak australia. let's get to first word news. su: china has summoned the u.s. and canadian ambassadors over the arrest of the huawei chief financial officer, threatening

action if she is not freed. she is accused of defrauding status of aing the subsidiary called sky, which was alleged to have breached u.s. sanctions on iran. washington said the case is not connected to trade talks which should continue as normal. much of andn't have impact. i can understand the chinese perspective, they would see it that way. it is a criminal justice matter, this separate from anything i work on. it is criminal justice. sophie: su: carlos ghosn remains in custody in tokyo. he will be formally charged later monday, understating his compensation. there are differing versions of whatd to his rest -- led to his arrest. they say they wanted to shake up the nissan management and replace the ceo, but he says

there are no such plans even though relations were strange. president emmanuel macron is to address the country later monday after another weekend of violent protests across the country. the president has seen approval ratings collapse as the yellow vests continue to demonstrate. critics say he needs a grand gesture to admit errors, stick to the substance of his mandate and convince skeptical opponents. more protests are expected next weekend. in australia there are warnings soft landings in housing markets are rare and they should be ready for the threat of significant fall in prices. 2.9%say growth will rise next year, leading to a gradual pickup in wages and inflation. the housing slowdown remains orderly but warns years behind prices and household debt could cause potential problems.

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 su keenan. this is bloomberg. continued totocks sell off on friday, taking losses for the week to the worst day since march. the sentiment can perhaps turnaround. here is sophie. nohie: most turnaround -- turnaround expected this weekend. in --spi and the stoxx chinese data to digest over the weekend and the ratcheting up of trade tensions. that is sending the proxy aussie dollar below $.17 u.s. and with the start of cash trade in sydney, indicating a lower open. we are keeping an eye on the stocks like this holdings group

after the company ceased to defend itself against allegations raised by regulators. aside,irman will step and there was a record 33% friday as regulators took action and the stock was cut to neutral on macquarie developments. morgan stanley cut to equal weight and slashed the price target 50% given uncertainty over leadership, m&a and partial viability. we are also keeping an eye on australian telcos as the government announced the winners -- thisction for $350 company one the most. vodafone venture got the most for its slice of the pie. this will start march 2020 until december 2030. coproducers after china's imports sink to a 21 month low -- sank to a 21 month low.

china's latest coal import policy to cap annual shipments that sustained levels from last year. haidi: let's get more on what we should be watching as trading kicks off in asia for another week. we have adam haigh. a big week for china data. the weekend, not exactly going to set the markets on fire with positivity. adam: it should not be a shocked disappointment, but it is incrementally another piece of negative news out of the chinese economy which has been slowing for some time now and expectations are it will continue into 2019. the factory price inflation data over the weekend, that kind of plays into the continued narrative of how much stimulus we will need and what pockets of the economy from the authorities as they continue to respond to the slowdown. from a sentiment perspective for markets this comes on the back of the payrolls number out of

the u.s. on friday which is on the weak side and triggered that pretty dramatic selloff in not just the equity market but the rally in treasuries. year,g to 2.85% on the 10 and those two things together, the concerns around the u.s. economy and how the fed response to that coupled with the fact thea continues to show extent of the slowdown there. at the same time the trade war is reaching another real inflection point that we saw over the weekend with calls from the u.s., from china on the ambassador. it is a tricky start to the week and very fragile start from a sentiment perspective. you are seeing in early moves the offshore yuan has weakened a bit. aussie yield is down. the sentiment going into the start of the week, pretty fragile. interestingee this

report from j.p. morgan saying even if you are biting -- betting on higher equity markets in 2019, you need hefty hedges because of volatility. talk us through the report. speaks to wear investors are trying to get to grips with what will happen in 2019. for some people the idea of making a 2019 call it self is too difficult. you need to play the markets week to week, month because things are swinging click -- quickly. the bank itself continues to see a decent rally in u.s. equities, talking about something in the region of 18% increase on the s&p 500. clearly they do expect volatility to remain elevated as we have seen the last few months , continuing into 2019. they are talking about issues still remaining and indeed may be getting worse into 2019 that could swing around the market.

a couple of trade ideas they at options, structures straddled in german government debt, 10 year burns -- bunds. and also over here it could be long on some puts. they ares of the way thinking investors need to get hedges on volatility to remain very high, even though the base case continued to be earnings growth is strong enough and economic growth in the u.s. to continue to drive the u.s. equity market. you have to be prepared for plenty of swings. shery: thank you. you can find his charts on the gtv library, gtv , on bloomberg. waitingl markets are with big questions. cap theresa may get her brexit

deal through parliament or is a hard split coming? and a pause after a hike next week from the fed? kathleen hays is here. let's start with brexit because the tuesday vote not looking good. what is next? kathleen: it is good -- not looking good. she is still planning to hold a vote and get people on board with her view this is the best deal, let's vote and move on. some of her colleagues and foes taking to the airwaves. the former u.k. prime minister boris johnson said forget about it. her deal will be like e.u. blackmail, never get rid of their clutches. steve barkley, on her side said we don't have plans to delay a vote. we are getting ready for hard brexit, but that would be undesirable. if everyone would vote, we could not do that.

people say theresa may will lose support if the deal is last. as for the e.u. e.u., the french foreign minister said talks are closed. as for the the -- e.u. e.u., the french foreign minister said talks are closed. it is up to the british people. let's take a look at other things as we ponder what will happen to theresa may. john trickett, with the opposition labor party, said they are ready to form a minority government as soon as wednesday. he is betting not passing a deal could be bad for theresa may. no one disagrees. and former ministers of theresa may's, one the brexit secretary, not ruling out a run for her job if she doesn't come up with -- or if they have the no-confidence vote to challenge her leadership and she has to

step down. boris johnson in the same camp with them. the brexit minister now denied any possibility to split the conservative party but he admits some people have quit. bloomberg newse reporting, even more loyal ministers are getting ready for onecond referendum and would be do you want to stay or go, asking the people. the second would ask the same question but then ask the people who want to go do you want theresa may or something more in accord with the wto rules? maybe something like the norway model, so where they continue to trade but with less rules involved. it is very complicated. now it is a political question. if this doesn't go through, it is anybody's guess what will happen to theresa may. then it is anybody's guess with the you because they are taking a hard-line stance. of a hard-line

stance. haidi: not getting any more simple. we had the u.s. jobs report with eco-numbers. they were kind of softer, playing into the selloff. we had officials speaking in different tones. it seems straightforward compared to brexit. this is a member of the board of governors, close ally of jay powell. she said she is on board with near-term rate hikes. let's listen to what she said friday. >> the gradual path of increases in the federal funds rate has served us well to give us time to assess the effects of policy as we proceeded. the approach remains appropriate in the near term, although the path increasingly will depend on how the outlook involves. involves the -- area -- kathleen: she was still

endorsing gradual rate hikes before. she said november jobs is a sign the economy is strong, labor market there let's look at what on payrolls numbers. the gain was 155,000. 185,000 was the forecast. they are putting out the three-month moving average is slowing down. we had a downriver vision in the previous month's number but wages were above 3% year-over-year. another soft signal was hours worked, not too much attention but that is a proxy. is this getting weaker, then outlook is getting weaker. jay powell sees the need to move cautiously. jim bullard of st. louis said there is no purpose in bringing the yield curve. he said the fed is getting hawkish. there is a chance it could

delay. he also said a flat curve veterans to an inverted curve is a big red flag for the federal reserve. haidi: indeed. next oil rising as opec agrees to curb production but saudi arabia admits the cartel and its allies could be reacting to late. this is bloomberg. ♪ ♪

haidi: japan investment corporation ceo and the president, public-private innovations on japan in horse -- investment and eight other executives have decided to resign according to the nikkei news, learning of that report on sunday. tanaka will hold a press conference to announce a decision. this comes after a time of overhaul and rejuvenation for the public and private innovation fund. it had been prior known as incj,

focused on bailing out corporate zombies and restructuring that had shifted focus to returning to investing in innovation, medical projects as well and looking at technology. it is said this came after a disagreement with the government, the minister of economy. .t is leading to his exit all eight of the board members are said to join tanaka in his resignation. we are anticipating a press conference as early as later on today. shery: will keep you updated. opec plus delivering a bigger than expected cut in oil production, defying president trump. let's bring in the senior market analyst. great to have you with us. opec output has been rising, leading to crude prices falling. now with this cut, bigger than

supportive is how it of prices? >> supportive through the end of the year. $65t to exit around minimum. the question is the first quarter when we start to track this compliance. that is when it will be crucial to maintain price support for the first half of 2019. shery: you can see that relationship on the bloomberg library and how production has been climbing and leading to wti and brent prices falling. even though we could get support this year coming from the cuts, what happens next year? >> next year we have a couple questions. brent wti are going to widen. why we have support of cuts, the mainstream takeaway constraints in the permian are still there and will be. second you have questions about waivers when they come up for renewal.

if they are renewed at current volume, that could inject more price weakness into markets. then compliance, that is the big question. saudi said they will start complying in january could russia will take a few months. our kids lives patients looking for -- markets lose patience, then you will see volatility coming back as we question demand and it is growing as strongly as we were hoping -- if as wegrowing as strongly were hoping. haidi: what are the implications given the exports we are seeing out of the u.s., and does it make a difference when the u.s. has integrated to any of this? >> you hit the nail on the head. while russia and saudi have agreed to cut, when will they accept u.s. production changes are a structural element in markets and not short-term? most people have the u.s.

growing through 2025, will opec and its allies cut every year to make room, or will they acknowledge there is another permanent swing producer in markets putting the volumes out? we are expanding the export capacity. we are about 2 million barrels a day now and investments are being made to get crude off of u.s. shores into global markets. chart,look at this looking at u.s. topping saudi and russian oil outputs which this chart illustrates how much the scenario has changed. we are seeing the impact of shale. i wonder at what point do prices get attractive that u.s. shale comes back with a vengeance? >> second half of 2019. first half we will see issues with takeaway capacity. wti will be under pressure through than, but in the latter half of 2019 when the stuff is

making it to the shore, and we have hopefully still strong demand through the second half of the year, we will see more production coming online and the 2020 hedging activity. most of 2019 production, a significant portion has been hedged. so these buyers are coming. the question is how do u.s. producers position for 2020 given the f -- the gift opec has given, cutting production again. shery: we have seen president trump be vocal about prices great last few times he tweeted, markets didn't react much. should that be factored in to consolations next year? >> prices are not set by twitter. shery: they are. we look atm fundamentals. traders are looking at what is out there. yes, we have questions around the iranian sanctions and the

waivers. opecesident trump is upset did cut more than expected, will he be more strict about waiver renewals and force the countries that did get them to cut even more even faster? ,his is a sideline item anti-opec legislation working through congress. typically presidents don't support the legislation, but president trump is a wildcard. he could come out in favor of actions on that as well. shery: the u.s. a net exporter for the first time in 75 years. how does that redraw the global oil map? >> we have seen it coming, ticking off product byproduct. i think the traders and the producers and refiners have been expecting this. it does lead us back to the question of when does opec acknowledge u.s. production and product being exported are

structural changes? shery: thank you so much, ashley peterson with the latest on oil. we will look at why australia is lagging behind on electric vehicles sales and the challenges it faces. this is bloomberg. ♪

shery: shery ahn in new york. haidi: i am haidi stroud-watts in sydney. as electric vehicles become more commonplace, governments and automakers are recognizing the need charging infrastructure. australia faces challenges as it works to plug into a new economy. our reporter joins us. we know that energy, energy sources will be a crucial part of the political landscape next year. why is there a lag in the adoption of electric vehicles? >> price and infrastructure.

you look at the price, it is a symptom that australia is relatively isolated very there is no vehicle production of either conventional or electrical vehicles going on so everything has to get imported. you can see a playing field between the different types. what tends to happen is consumers are focused on the top end of the market. you see the tesla around, but not so much the budget market. australia hasn't really taken that up. that is partly a factor, it is easier to go with it at conventional but also priced down the market. the other factor is infrastructure. there is a lack of public charging infrastructure. we are also -- often dealing with large distances between cities. a can't -- contained space. >> a charge will not last that

long. you need to know there will be someone to put your car up and charge like a gas station. there isn't the infrastructure so far. shery: what does it take to catch up? >> i think there is a couple of companies who we have written about recently that have tried to roll out the fast charging infrastructure. it is not exactly state-of-the-art. one of these is already a done deal to build the fast charging stations, networks across countries. now they are turning attentions to australia where it is needed to give the industry a boost. at the moment it can take up to hours to charge your car to drive a distance. with these ones, you can do it in a matter of minutes, charging up to 450 kilometers. that will revolutionize the industry. that is what people are hoping. the economics of these fast

charging places, it is tight, marginal but costs are coming down and increasingly as they build up to scale, it will get better. ♪

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haidi: good morning. i am haidi stroud-watts in sydney. shery: good evening from new york. i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to daybreak asia. haidi: our top stories, beijing threatens to rotelle rate -- retaliate if the huawei ceo isn't freedom. the imf repeating warnings about trade. christine lagarde said the