>> welcome to day break australia. >> i'm sherry. bloomberg world headquarters in new york. >> and in hong kong. we are counting down to asia's major market open. >> u.s. stocks slump to a 14-month low as investors weigh of the fed, political tensions and a possible government shutdown. the s&p 500 closed at its lowest since october last year. tech health care consumers leading the way.

and golden sachs is among the loser. this after malaysia filed criminal charges linked to the embezzlement scandal. >> quick check of the markets. closed the u.s. session on this monday. we saw u.s. markets under pressure with the dow falling 500 points and the s&p 500 losing at 2%. we have every sector on the s&p 500 in the red. of course we have concerns over onomic growth with the fed rate hike and the government shutdown. all this weighing on yields which are under pressure. the 10-year yield hovering around 285, 264 level. you see why financial stocks under so much pressure. one of the big lagers there were goldman sachs.

we saw malaysia filing the first criminal charges against the company so that also weighs on the sector. health care was also down 2%. down for a second consecutive session at the lowest level since october of last year. of course, we had a judge ruling that obamacare was unconstitutional so insurance stocks really took a beating. we also had oil falling and settling below $50 a barrel since the first time since 2017, worrying over u.s. stockpiles weighing on prices. let's see how we're setting up for asia now, sophie. sophie: shery, we're bracing for stock losses after the poor showing on wall street. so anticipate as well that move further into regional bonds given the moves in treasury overnight. there is little on the agenda to detract as we count down to the fed decision. the r.b.a. december meetings. and they held rates at a record low 1.5% since august, 2016 and

their divergent views how long this will continue going into 2019. taking a look at aussie futures in particular. we could see a drotch 1.5% as we take a look at cash trade. as you take a look at aussie futures, they have retreated the most in a week. you see the drop right here. and resource related stocks may in particular come under commodities, shery. raw materials have fallen to an 18-month low given that continued slump in oil and fresh declines in metals including copper, shery. shery: sophie, thank you. back to the u.s. close it was a rough one. the dow was more than 600 points, at its worst, while u.s. crude settled below $50 for the most in a year. bloomberg sue keenan is here. sue, defensive sectors took a big beating today.

we saw just more volatility. this seems to be the new normal. sue: yeah. the stock market vulnerable to these factors, whether it's president trump tweeting it's incredible the fed might raise rates. whether it's a possible shutdown. whether it's the growth forecast being trimmed because of trade issues. all of this weighing on the market. let's go right into bloomberg because failure to bounce is really an understatement but a theme of the day. you got the s&p breaking below recent support. here's the brutal story we've seen. a lot of this was follow-through from friday. look at this. heading to the lowest level of 2018. on track for the worst december in nearly 90 years. we go into the snapshot. you get a look at what we're talking about. consumer shares, discretionary, that was down almost 3%. the tech index down heavily. you also saw, again, bonds moving higher. there is a big focus on bonds

as we, again, move our focus to what the fed may or may do. but right now in terms of the stocks, the size of the moves really jaw dropping in many ways. let's go to a couple of the stocks. j&j, which had been one of the biggest decliners of because of an asbestos scandal, their drop pails in comparison to others. amazon under pressure. twitter has an issue with some state sponsor actors that it's trying to deal with. proctor & gamble pacing the declines we are seeing in these consumer and consumer discretionary stocks. again, there is concern that the stock market, again, is going to continue to have this kind of reaction to the many different headlines that are out there. shery: so the drop in oil didn't help sentiment at all. first time below 50 bucks in a year for w.t.i. concerns about supply and just how much opec has its work cut out for them. su: yeah, a confluence of

concerns. there are projections in the u.s. we're seeing the supply gain and, of course here we are you a looking at the chart. you see how dramatic the decline is. first time in a year we are below $50 at the close and some of the headlines, again, have to do with crush by cushing. it's the big hub, storage hub in the u.s. there is rising inventory there. that's putting pressure on price. the stock decline, the dramatic dropoff we saw toward the end of the session, that put pressure on crude as well. there is growing skepticism about this accord or agreement to cut output. oil prices now on track for a third straight monthly decline despite the efforts by opec, russia and others ho halt the slide and, again, as one trader said we're probably going to see a supply slowdown in the u.s. he does think the producers will react. but it is an ugly chart. what one trader told me, it's

amazing almost every asset class you had this very rough close. haidi: su keenan, thank you so much. we'll talk with a global c.i.a. with wells fargo which oversees $483 billion in assets. kirk is now joining us from los angeles. great to have you with us. so are stocks telling us something that the data has yet to reflect here? kirk: well, i don't think that this selloff is fundamentally driven. i think it's mostly political. meaning the stock market is reacting to the events in washington, the trade wars, the concern about brexit. so i don't really think that at the end of the day, you know, this is something to get too concerned about it. obviously anytime it sells off you worry. this isn't the end of the world by any means. shery: health care stocks held up. now we have this ruling on obamacare. is this a threat for the sector? kirk: well, i've been a bull on the health care sector all

year. the ruling, if it were to stand, would be a blow to health care. i personally don't think the ruling will stand. the other thing that came out of left field was the johnson & johnson worries about the asbestos litigation which is a one-off risk. otherwise, you know, the health care sector's done very well all year. i still think it's up 5%, notwithstanding, you know, the selloff. haidi: i want to talk about the overhang and main overhang is what the fed path looks like going into 2019. i want to throw out this chart taking a look at the level of uncertainty in 2019. you can argue some degree of uncertainty this week where it's not a done deal. if the hype this week could last for quite sometime, does that remove some of the uncertainty from the market if -- o see them to pull off next year might be easier when it comes to financial

conditions? kirk: well, there could be a silver lining. i've been saying this for a while that the stock market would like the fed to slow down. that may very well occur. you think about, isn't it amazing? a year ago we were talking about four rate hikes potentially next year and now there's a lot of speculation there might be, you know, one and done. so certainly the market would be very receptive to positive and dubbish comments from chairman powell but we have to wait and see. shery: even a year ago, a few months ago it looks like we were talking about potentially three or four going into next year. haidi: taking a look at the other side of things, seeing economic data, economic, i guess, forecast globally getting revised down left, right, and center and a lot of this has to do with the structural slowdown in china and the impact of the trade war, does that rear its ugly head given so far the past trump-xi truce,

positive? kirk: if you look at the s&p next year, the consensus about 173 a share. you put a 15 multiple that is where we are. we were at a 17 multiple. you are right, we had a correction. i think it's logical given all the geopolitical uncertainty. so my guess is that we will get some kind of settlement on the trade wars, we will get some kind of settlement on brexit and i think some of the, you know, the issues about shutdown and those kind of things in washington will stabilize. that might not happen between now and the end of the year. it might be 60, 90 days of more vull tilt but i think for a profession -- volatility but i think for a professional buyer there are good opportunities here. shery: to your point, dropping to levels we have not seen for a while. the g.t.v. chart showing you exactly that. could we expect profit expansion to help boost stocks

going into next year as well? kirk: well, again, i think there are some great buying opportunities. i want to look at the bond-like stocks that don't have the duration risks. i was not surprised today. you saw the -- they call them the steady eddies, dividend yielders do well. however, reach in utilities didn't fall on that. that is because of the worry about duration risk. the u.s. has a lot of debt and that debt is not going away. the other silver lining here i think is not to be forgotten is the impact of the dollar because i think one thing that's going to happen here is the dollar may come down to earth which may in the long run be good for the world economy, especially the emerging markets. shery: would you recommend low volatility internationally? kirk: yeah. i like china mobile. 4.5% dividend yell. i like telenor, 4.25% dividend yield. there are these fine companies

with great dividend yields that are a good place to be during this volatility. i would say the same thing for the u.s. so you got, you know, the verizon, the at&t, which are leading the charge in 5-g. so i think you have a lot of good opportunities here long term. shery: all right, kirk, thank you so much. wells fargo asset management global soy. jessica. jessica: thank you. theresa may is giving herself four weeks to save the brexit deal. may faced a hostile house of commons as she tried to explain why e.u. leaders rebuffed her last week. she is hoping to offer new assurances. labour says it's not good enough and is calling a vote of no confidence. >> has cynically run down the clock. trying to maneuver parliament

into a choice between two unacceptable outcomes. her deal or no deal. the country workers and businesses are increasingly anxious. jessica: the may government is on the point of agreeing a post-brexit immigration policy that's expected to favor high earners and citizens of nations deemed close to the u.k. they're likely to include australia, canada, japan, new zealand and the u.s. plus, countries that agree trade deals. the home office proposals were expected to be published back in september but has seen frequent delays and rewording. u.b.s. says the trade war is increasingly taking its toll on china. it says factories are being forced to cut prices, workers and investments with more than 80% of companies directly affected by tariffs, reporting a decline in orders. u.b.s. spoke with chief financial officers and

manufacturers with significant export business. the bank says the 90-day trade truce will be nearly a temporary respite. and tuesday's shaping up to be a day when the stars align for space exploration. assuming the weather holds and there are no last-minute technical glitches, four separate companies will head into orbit. they include space x, blue origin, united launch alliance. it involves boeing and lockheed martin. it's the first time so many rockets have flown on the same day. global news 24 hours a day on air and at tick to be on twitter powered more than 2,700 . urnalists and analysts this is bloomberg. haidi: signs criminal prosecutors related for the one scandal could cost goldman sachs millions. shery: up next, take the

victory. president trump blast the fed ahead of this week's expected rate hike. we will have ails. this is bloomberg. ♪

haidi: here in sidney, futures values indicating where we are trading down about wund or .2%. following that loss, i should say, another dismal session on wall street overnight. here on australia, we are expecting the r.b.a. minutes from the december meeting. of course it kept on hold for 26 consecutive months. i'm haidi in sidney. sher shery: and i'm shery in new york. president trump has new allies telling the fed not to raise its key rate this week. a former fed official and more than one high-powered investor stepped forward to warn jay powell that another rate hike

will be at stake. kathleen, i remember kevin a former fed governor. he was considered fed chairman. what's his argument right now? kathleen: he thinks it's a mistake for a variety of reasons. of course, this happens at a time when we are just on the eave of a two-day -- eve of a two-day federal reserve meeting. the rate hike all that baked in the cake, the fourth one of 2018, at least that's what people were thinking, until we saw a global slowdown, big stock market selloff and a president who continues to attack the fed saying they are on the wrong path. jay powell should not be doing this. let's look at donald trump's latest tweet. this is something that obviously got the market's attention today. it's incredible. a very strong dollar and virtually no inflation, the outside world blowing up around burning. is china way down. the fed is even considering yet

another interest rate hike. take the victory. peter navarro, trade advisor to donald trump, decided to get into the act too. here's what he said about the fed and what they shouldn't be doing. we have zero inflation for all practical purposes so on wednesday the only argument i'm hearing for the fed to raise rates is somehow they have to excerpt their independence from the white house, he goes on to say, this is a bad argument. i think what the fed should do is do is look at the data. there is no reason to do this. so you do have from the white house it seems the pressure getting even stronger. that drumbeating even louder. and remember, of course, this isn't necessarily the consensus view. a lot of economists, fed watchers on wall street, think it's definitely time for the fed to make one more hike and do it on wednesday. shery: yes. certainly put jay powell again in a difficult situation. kathleen, is the former fed vernor, kevin warsh, and

drunkenmiller wrote in this journal op-ed saying the rate hike is a big mistake, is this the same view? kathleen: yes. it's a co-written article. they have the q.u. winddown. the bond portfolio. you have a global slowdown. you have china slowing down. you have stock market volatility, stock market selloff. and for many, many reasons they think it's a mistake. let's look at a snippet, actually a conclusion from this economy. we believe the u.s. economy can sustain a strong performance next year. given recent economic and market development, the fed should cease for now the double-barrel blitz of higher interest rates and tighter liquidity. jeff, c.e.o. of -- very famous bond investor said the bond market is telling the fed not to hike. let's listen to what a co-winner of the 2018 nobel prize in economics, paul, asked

on bloomberg. >> there is a chance they'll make an error. is it likely anybody else knows better? no. i think they're the ones in the best position to take position. we have to let them do their job. kathleen: another voice, i think, kind of saying let the fed do what they do, let them figure it out. they're basically in a position to make the best decision. haidi: in the best position to make the best mistake. insinuating. so, you know, far from being a done deal as to what kind of decision we can expect, can they pull off this hike? kathleen: well, the bond market, the rate hike odds, expecting it. the bloomberg economics team, for example, here in the u.s. in the u.s.

saying that this is a strong economy. it may cool off to 2.5%. inflation will have more pressers in a tight labor market. dots, dots, dots. so closely watched. if they do make the hike and make it dubbish, maybe one of the ways to do is by changing the dot spread, you bring some of the upper dots down more and these two when looking at the number expected for 2019. because right now what this all means, there is a slim majority, not a -- well, i guess a slim majority if you look at all of them, three rate hikes next year. also remember, it's not former fed officials. president of the st. louis fed has been beating the drum about the yield curve. it's pretty flat. he's concerned it could invert. he thinks it will be the wrong thing to do. president of the dow says he's not ready for a rate hike when asked this question a couple weeks ago. so if they pull it off, it seems to me that this idea of having a rate hike, a policy statement is dubbish. and a fed chairman saying this, we'll wait and see if it happens. the minority, maybe, just maybe they'll decide to hold off, especially given what we've

seen in the stock market lately. haidi: kathleen hayes, make sure you're with us for our complete special coverage of the fed's decision. that program begins 6:00 a.m. thursday morning if you're watching here in sidney. coming up, goldman sachs plunges after malaysia files charges. in is bloomberg. ♪

shery: and we have breaking news from cbs. they came out and say they completed the investigation of former chairman and c.e.o. les moon invests. now they say they -- moonves. say they found -- moonves won't get any searches payment because they have found grounds terminating moonves for cause. we know the longtime c.e.o. agreed to step down back in

september in the wake of a dozen complaints of sexual harassment. now we're getting the latest cbs saying they have completed that cbs saying they completed that investigation into leslie moonves. now they are saying that he will not reaction to the bank being charged and facing a demand for billions of dollars in fines. we have the story. now, this could amendment to $3 billion in fines. >> looks like it. $2.7 billion on one side and trying to get back all the fees that were paid. $600 million on the other. so we're looking at something well over the $3 billion mark. but basically what they're glauks is that it's

your fault -- goldman sachs is that it's your fault, you take the responsibility. you take the financial burden so you need to pay up here. walking through what's on your screen right now, mentioned the $2.7 billion. the $600 million there. they are filing charges against three glauks units -- goldman sachs units. this according to malaysia edge newspaper there. it says they misled users of m.d.b. proceeds. let's go what the malaysian attorney general said. he says of the company, their fraud goes to the heart of our capital markets. if they didn't do this then they'd be undermining the country's own financial system. you know the whole entire share price has been taken a hit. it's down about 34%.

and a goldman sachs spokesman said they will vigorously defend this. shery: they are adding to the losses in the financial sector and the s&p 500. thank you for the latest on goldman sachs. this is bloomberg. ♪

haidi: markets open for the session in 30 minutes' time. we get the open. look like we'll come online down 1.2% in the sidney open following -- following the loser, if you will, another tumultuous session on wall street. the dow dropping about 600 points. the s&p at its lowest close since october, last year. all as we get the fed overhang as we head into that final rate decision of the year. i'm haidi in sidney. shery: and shery in new york where it's 5:30 p.m. you're watching "day break australia." let's get the first word with jess.

jessica: the white house turning up the heat on the wildly anticipated rate rise. president trump tweeted his opposition to a hike and his trade advisor peter navarro says it proves the fed's independence would be unjustified. bloomberg survey suggests the fed will slow the pace of hikes last year as threats to the economy mounts. china's holding of treasury fell to the lowest in 18 months. that's as foreign currency reserves decline and the u.n. weakened again. it stocks of notes, bills, bonds fell to $1.14 trillion. that's down from $1.15 trillion september and it's the lowest since may last year. china remains america's biggest foreign creditor following japan. italian prime minister conte has taken a revised brightful to the european -- budget proposal to the european commission.

deputies agreed a new package to send to brussels. that's after accusations their original proposal would break spending regulations. the two sides held talks on monday. though we were told no agreement will come before tuesday. goldman sachs shares fell to 26-month lows after malaysia laid criminal charges in relation to the 1 m.b.d. scandal. they said they misled investors. malaysia is seeking fines well in excess of the $2.7 billion of allegedly misused funds and the $600 million in fees received by goldman. global news 24 hours a day on air and at tictoc on twitter by more than 2,700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. shery: asian stocks managed to eek out gains in the last session. of course, we had a bit more

positive news on trade tensions between the u.s. and china but now we're seeing this huge selloff in wall street. stocks falling to the lowest level in 14 months. we will see how we set up for the market open in asia. sophie in hong kong with the look at that. soph. sophie: shery, scant positive news to be head. there is little heavyweight data to distract from the focus on the fed's rate decision. we do have the b.l.k. and r.b.a. meeting. what they say will be of interest. in korea we did see the governments lower its g.d.p. growth forecast for 2018 and 2019. we are anticipating the slowest economic growth for korea in six years. now, when we have a look what's going on with futures, given this backdrop of risk, taking a look at aussie futures, falling the most in a week. commodity related players are likely to feel the pressure given the broad decline in raw

materials. cal tech in particular at the open, this as refiners see lower 2018 margins. haidi, we've seen the pull back in oil prices not providing much of a tail wind for retail marginses and oil continuing to sink on growing fears of a supply glut. under $50 a barrel. the energy department forecast higher shale output for this month and next. crude prices are on track for a third straight month of decline despite effort by opec, russia and other exporters to halt the slide. as prices fall, michael is anticipating producers will react and there will be a supply slowdown in the u.s. but no signs of that just yet, haidi. haidi: one of the energy players. sophie in hong kong. here is andrea. another down day on wall street.

kirk hartman, earlier, said this is not based on fundamentals necessarily. andrea: we do try to attach fundamentals on a day-to-day basis and that's becoming harder. one thing we can say is investors are concerned, they are the talk of recession has especially in the u.s. has started to play on investors' minds. and it does come, you know, as we are approaching the end of this growth cycle. however, investors are being spooked by a host of things going into the end of this year. you know, we're adjusting to higher rates. the impact -- the impact that's having on stock valuations as well as the effect on trade. i think we have a chart that actually shows the extent to which investors are concerned. it shows hedge fund speculators increasing their base on higher volatility and we can see from that chart that net long positions on the v.i.x. index is the highest since april,

suggesting that stocks will be in for a rocky ride and will come under pressure towards the end of the year. goldman sachs is telling investors to position themselves defensively next year. so this fed decision that we have this week and especially jerome powers' press conference will be key to the markets and to investors. shery: we already had a decision in december. really not moving, again, the cash rate kept steady at 1.5%. now we're starting to price in a slim chance of a cut next year. so what should investors be watching out for? andreea: that's right. the r.b.a. is releasing its minutes for the december meeting and it comes at -- there is some thinking here that the risk to the australian economy are to the downside. especially as you are seeing a slide in housing values on the east coast, especially in sidney and melbourne.

now, what the impact -- one of the impacts it could have is on the australian dollars. you just pulled up a chart from the g.t.v. library that shows that gap between u.s. rates and australian rates is widening and the aussie dollar is in fact the second worst performer against the u.s. dollar this year. now, the r.b.a. has been sticking to its message that the next move in rates is going to be up. probably not for quite sometime. so what investors are going to be looking for from these minutes today is any signals that -- their way of thinking is changing, especially given the severe slide in house prices in sidney. shery: thank you so much. of course, you can check out her charts on g.t.v. library on the bloomberg. china's marking 40 years since

the opening of the economy to the world. it spurred the greatest creation of loss in history. lifting more than 700 million people out of poverty. outside the forbidden city in beijing. do we expect to hear in the coming hours? tom: yeah, shery, we're expecting president xi to stand in the great hall of the people outside of the forbidden city and give a speech to the 40th anniversary of reform. which is celebrating across the country from the south to the north in beijing. and really we're expecting president xi to begin build on this reputation -- again build on this reputation as a supporter of globalization, pushing back against protectionism. he will of course give a nod to peng who kicked off these

reforms back in 2079. this is putting his own mark on the reform, agenda. we'll hear comments in area of trade, industrial policy as well and technology. whether or not he's going to talk about the need for increased indigenous technology and innovation. you got cases, of course, like qualway which is being held in vancouver. and a case that's refocused on innovation and technology indigenously. there are a number of areas we will look for. we don't expect any earth shattering announcements from president xi. some would like him to lower barriers across a number of sectors. bloomberg intelligence says look for the professional and financial services sectors. that may be one area where we hear about greater reforms and greater access for foreign investors and foreign businesses.

shery: tom, xi's own interpretation of what reform and opening up means and that's really been a strategy that's attracted some skepticism and let's be honest, criticism. tom: that's absolutely right. that's because he's pushed for greater role for the party, of course, in the private sector and state sector. he talks about the state's own enterprises it means creating forces that can complete on the global stage. of course, he's done away, many xiopeng e, with that legacy of buy your time. he's taking a muscular approach on the growing stage whether that's building islands in the south china sea or military installments or the robust approach to trade and ending up in this trade conflict with the u.s. we spoke to fred hu, the chair worked for

goldman sachs. he said this period in modern chinese history remines him of 1989 to 1992 in terms of the risks that china is facing. take a listen. >> that was also a period with the tremendous uncertainty, concerns and the worries whether china would continue to eform or stop. fortunately, thankfully, that jinping n end with made the famous tour. tom: from 1989 to 1992, that's what this moment now reflects. according to fred hu, who's lived through this period, this 40 years, of course. that was a period where you saw hyper-inflation. you saw the tinman square rackdown and then you saw deng

xiaoping go places south like shenzhen to kick that reform agenda. people like fred and many others on the reform side, the reform camp here in china would say there is now a moment and need for bowled leadership from china's leader -- bold leadership from china's leader to address the external challenges. that's why there will be so xi's comments. shery: coming up next -- how one australian startup you may not have heard of. haidi: we'll talk about that next. this is bloomberg. ♪

shery: welcome back. i'm shery ahn in new york. sophie: well, if you buy something from ticketmaster or

domino's, there is a chance you contributed to the success of our next guest. a marketing firm in sidney that sees the pop-ups once you make a transaction online. haidi: it's supposed to be the next unicorn to emerge out of australia. c.e.o. bruce buchanan joins us in australia. great to have you. tell you about the business, the core of its profitability and how it came about? bruce: well, i spent 10 years building and starting and running jet start in australia and through the latter part of that i came up with this thought that most profitability was based on getting smarter in the checkout experience. we looked around the world to see if the technology would make it better. jet start had things they were selling to consumers. consumers would engage in about three of them. working out three were relevant for each consumer were tough and that's what we saw around

the world. haidi: you're based and found in sidney. where do you see expansion communities? bruce: well, we are live in nine markets. we just started japan. we got 13 markets in europe we will roll out in the next two years. we are live in three markets in europe. . d we're live in asia-pac lots of geographical growth. a lot will get deeper in the transaction and solving internal problems for the ecommerce opportunities. improving their basket size. shery: funding at a decade high. how does it look over in australia for a small startup like yourself? bruce: well, i think the markets are strong in australia. it's great to see over the last 10 years there's been a flourish of new funds start. some of the tax treatment has helped create an ecosystem that's helped startups in the

australian marketplace. you see a lot of talent emerging from the marketplace and a lot of new ideas. there are a few troubling trends, though, if you look atrd, credit crackdown, getting immigration laws, there are a few things that startups are worrying about. shery: you won a legal challenge against i.p.o. australia. what about self-innovation? bruce: yeah, i think it's got interesting repercussions globally. we decided they went to war on software patents and we basically said software in its own right is not the enemy. it will be an integral component at every innovation. and ruling out software as a subject matter is ridiculous. doesn't affect our business but we saw a whole new generation of businesses coming out of the region that needed support and needed them to step up and

protect them. it protects businesses in the australian marketplace. more importantly for startups it acts as a gateway as they register intellectual property. haidi: there's been a lot of concern over the revolving door nature of australian politics and more specifically the policy, i guess tech entrepreneurs who expressed concerns about the lack of innovation. when it comes to energy and green energy. is there a bigger role they can drive more better, more innovative policy? bruce: look, we canage state. we can take the government to work when we see them make the wrong call. i think ultimately lack of leadership will cost us in the long run. i think the cost of that, a lack of australian political leadership is not going to cost us now. the cost will happen in 10 or 20 years' time. the failure of policies aroundrd, immigration, and -- around r&d, minimum gration

will not cost us now. it will cost the next generation. haidi: how hard is it for an australian startup compete globally and the u.s.? bruce: it's challenging. coming from jetstar and building a brand globally and rokt globally, building a brand, getting a team, forming a network in markets you've never been in, it's tough. for any australian startup going globally, the more support we can give them the better. it's something i think, you know, the government has a key role to play. in terms of r&d incentive, i.p. australia, intellectual property protection, helping businesses with talent, there is a future intent in 10, 20 years. the future will be clean energy, tech, innovation and other things coming out of this market. haidi: a lot of chat about a.i. and in particular when you look at the wars that google and

facebook faced, data privacy, hits they have taken. what's the next big thing, do you think you would identify one trend going into next year, next five years? bruce: look, i think when you see big data coming to actual use cases, we haven't really seen big data combined with a.i. produced really meanful businesses. the future of that is going to be enormous. the ability to make one-to-one decisions about consumers in the transaction like we do, for instance, one small use case has the ability to double the profitability of every ecommerce transaction globally. that's one action, you know, of an application of a.i. but there's millions of them that you can use. the combination of big data in real time with a.i. is very powerful. haidi: all right. bruce, thank you so much for coming on and joining us. bruce buchanan, c.e.o. of rokt, joining us in sidney. shery: and coming up next, nissan, a look at what happened at the board meeting, next.

this is bloomberg.

shery: welcome back. i'm shery in new york. haidi: i'm haidi in sidney. you're watching "day break australia." a latest at the headlines. oracle found estimates reflecting its struggle to boost demand as it transitions to the cloud. revenue with little change with $9.5 billion in the second quarter and fractually above forecast. 80 cents a share compared with the estimates of 78 crenlts. they were facing cloud challenges with amazon and others. shery: t-mobile is set to take over sprint. checking one boxes as required. we're told the committee on foreign investment in the u.s. have told the company it's clearing the deal, moving them closer to their $26 billion tie-up. the focus now shifts to the

federal communications commission and the justice department's antitrust division. haidi: ending a two-year drive by bill winters to quit the business. intermediate capital group says they're buying a majority of the bank's private equity assets in a transaction valued at $1 billion. the unit has helped create more than $1 billion in losses since winters took charge three years ago. well, the much-anticipated nissan board meeting ended. david is in tokyo for the story for us. if the board did not name a replacement, what did they manage to achieve in this meeting? david: there was some semblance of progress. yes, as you nentioned, no chairman just yet. we did hear, of course, from the c.e.o. that there should not be any hard deadline on that.

now, as far as we go from here is concerned, they established a committee to look into governance issues and they said based on what they will likely say, and they have about three or four months, march, 2019, is when they are expected to give recommendations will the board name the successor. haidi, we're five weeks into the story and it looks like based on his comments we'll be here for another three, four months until we see -- who will succeed carlos ghosn as nissan chairman. shery: we're getting word that nissan is pushing back on an extraordinary general meeting. what's going on. david? if you guys recall this time esterday we did see a report that, renault wanted to discuss the indictment, of course,

being the main part of that agreement. now, we're hearing from a report that nissan has pushed back the idea and rejecting a holding an extraordinary meeting any time soon. so that's the latest as far as that's concerned. but obviously we'll have to wait and see as far as whether or not we get some sort of shareholders meeting at some point to discuss all these issues. obviously the underlying story, it basically shows the divide between what renault wants and where nissan wants to be at this point in time. they seem to be far apart on this one. haidi: dave, one quick word on the delisting hold. do we know any more about that? david: yeah. not going to happen. the japan exchange clarified the status of nissan shares because obviously we have seen these concerns, is it going to be delisted? is it going to be put on a

watch list, alert watch list? so according to the japan exchange, what they're doing now is they're asking nissan to provide more information because there isn't any clarity at this point in time whether or not nissan violated exchange rules. so, no. don't be worried about that anytime soon. it's not actively under a review at this point in time. shery: david ingles in tokyo. thank you so much. stay with us for a special "daybreak australia." we'll be discussing china, u.s. trade tensions, where we go from here. not to mention the market selloff we're seeing globally, including the u.s. and the latest volatility, haidi. haidi: yeah. the selloff that's tracking through to asia. we're taking a look at trading in new zealand. we're getting an indication

sidney will probably open in the next few minutes down by one and .of 2%. looking pretty much low when we get into the tokyo and seoul open a little bit later on. "daybreak asia" is next. this is bloomberg. ♪

>> a very good morning. australian markets have just opened for trade. >> good evening from bloomberg's global headquarters in new york. >> and welcome to "daybreak asia." >> our top story this tuesday asia pacific markets facing new pressures as wall street hits a 14-month low. investors weighing the fed, geo politics, and a possible government shutdown. the s&p 500 closed at its lowest since october, last year. tech and health care and consumers led the fall. no sector was left