paul: welcome to daybreak australia. i am paul allen. shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. act now, president trump wants china to strike a deal on trade because worse could be on the way if he is reelected. uber will be in the spotlight when wall street opens. investors bracing for another tough day.

australian elections swing into gear with scott morrison appealing to the country [indiscernible] shery: u.s. futures are trading after a weekend of trade antagonism tween the u.s. and china. futures are down .7%, reacting to the latest from donald trump. he tweeted china broke the deal, that we are at the right place, where we want to be in china. we have the u.s. markets closing optimism tradead negotiations didn't completely breakdown. 10 out of 11 sectors on the s&p 500 gained ground, being led higher by utilities and materials. we also have the dow gaining .4%, the nasdaq unchanged but we have data out of the economic front. we saw the dollar falling to session lows and u.s. april

consumer prices coming in lower than expected. it has been about the trade talks and the little optimism that is left with larry kudlow coming out and saying ambassador lighthizer and secretary mnuchin have been invited to beijing. the focus entirely right now seems to be on those trade negotiations. let's see how we are setting up. sophie: focusing on trade negotiations, the vice premier is cautiously optimistic over the future of these talks. futures hinting at gains after the benchmark came out in advance on friday. traders are looking at haven assets, checking on currencies early in the asian session if we could. the yen trading firmer against the dollar while the aussie is under pressure this morning. the offshore yuan -- not far from the four-month low that hit friday when it was six against

the dollar. hong kong markets are closed and the philippines. midterm elections kick off this morning. paul: thank you. let's get to first word news with su keenan. su: we start with prime minister theresa may resuming brexit talks with the labour party this week, increasing in party pressure to abandon the strategy -- amid in party pressure to abandon the strategy and resign. she is really from opinion polls that put nigel farage on course to win the most seats in next week's e.u. elections. >> we voted to leave once in the referendum or the year after that the labour and conservative readies promised us in the manifestoes they would honor result. here we are, three years after, been delivered and given his government and

parliament there is no prospect of these parties delivering a clean brexit. su: in south africa the president is vowing to clean up his party, what he calls deviant tendencies after his ruling anc party clown on to power in elections. despite the convincing win, it was the worst ever election showing for the party with its forrity polling below 6% the first time. the anc has ruled south africa since the end of apartheid 20 years ago. india has reached its penultimate round with 483 of the 543 seats decided. the congress leader is contesting seats in new delhi and in the south in an attempt intimatet an all india -- india image. the final constituencies vote

next sunday with results announced may 23. scottlia, prime minister morrison has launched his liberal national coalition election campaign, appealing to the have a go nature of australian voters. opinion polls suggest the opposition leader party -- labour party is heading for victory. they will address climate change and greenhouse gas emissions. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. shery: the u.s. and china are lashing out after the latest round of trade talks ended in redenomination. -- recrimination. president trump said beijing must act now because worst could be on the cards if he is

reelected next year. we are seeing u.s. futures taking a dive, falling .7%, falling as much as 1.1% at one point with the markets pricing in more trade tensions between the u.s. and china. chinese state media hit back at saying washington should take full responsibility for the hiatus because of the higher tariffs that came into effect on friday. tom mackenzie and ros krasny are watching this. the trump administration hardening its position with little signs it will back off. ros: that is right. if you look at president trump's tweet from last night and into the past hour, i wouldn't say doubling down but he is sticking by his guns, negotiate now or face worse terms. he didn't say if i am reelected. he said when i am reelected.

recently said the u.s. is right where it wants to be on these talks. seems settledd it for now. china will pay the tariffs according to trump and the u.s. will use this money to buy you a second cultural products and distribute around the world. he has it all straightened out in his mind. the trade hawks in the administration like representative lighthizer are in control of the show at the moment. these are people who have been suspicious of china not for years or months but decades. they want to see a reset for the ages. to allowelping them president trump today in to his position. one thing to watch out for, we hear the next round of chinese talks that might be targeted by the u.s. could be announced monday. it seems like there is not much suspense because it would be almost everything else china

exports to the u.s. that hasn't been subject to tariffs so far, things like video game, iphones and other mobile phones and a lot of technology. paul: so that is the u.s. side very what has the reaction been in china? she talked about a reset for the ages. if you listen to the commentary out of newspapers like the people's daily, that is not what china is prepared to go for. what we are hearing from these editorials over the weekend is they are toughening the stance. they are putting out an editorial saying it should be the u.s. that takes full responsibility for what is a breakdown in these negotiations. it is only temporary, saying -- a wanted a news mutually beneficial deal, saying

the chinese want to talk but were pushed to their limits. the times putting out in their editorial, the fierce u.s. offensive is irrational. it goes on to talk about how these tariffs will hurt the u.s. economy and that china will not accept a deal that is unequal in the short-term deal. the u.s. is gambling but china is clear-cut it will reach a deal but never make concessions on trade. that comes down to the nub of it for china. they are getting to a point where they felt they would come away with a deal that was going to leave china losing face with a lack of dignity being forced to cross the line on some of its principles. that it seems is what pushed china over the limit according to these editorials. we heard from china's lead negotiator saying it wanted and he wanted to see the u.s. remove tariffs, reduce demand for agricultural purchases and allow

them to come away with a deal that left china with some dignity. we are getting that out of the people's daily saying the u.s. is obstructing. we have lots of speculation china would go ahead and retaliate against the u.s. sort of one minute passed the turn it -- the tariffs being hiked but we haven't seen anything. what can we expect? tom: just as china is kind of trying to add transparency over its position, it is also trying to leave the window open to continue negotiations with the u.s. larry kudlow said china invited lighthizer and mnuchin over so we don't have talks around the best dates around that. , talking to people here, china will outline its

retaliatory measures at some point this week. it has wanted to come across as being the rational player, not to overreact. the question is how they are going to put in place countermeasures, whether it will raise the tariffs on goods they already have duties on, or if they look at nontariff barriers or other measures like devaluing the yuan. these are being played up by policymakers in beijing, and that is a key question on how china will respond. in terms of monetary and fiscal policy, they are looking for the pboc to support the economy now these tariffs are in place. so china is weighing its response. where does it leave the u.s.? ros: there seems to be an open ended invitation for secretary lighthizer and treasury secretary mnuchin to come to beijing for more talks, but it seemed this weekend the u.s.

feels it has the upper hand and there has been an erosion of trust between the sides. that is one thing that could impede the next round of discussions. kudlow saidt larry today, it seems like the figures that are going around in the white house suggest this would be a minor economic impact for the u.s. hitow said they believe the to growth from the worst-case scenario would be .2%. you look at that and embraced those numbers they might think, why don't we do it? that is a key negotiating chip from the white house. things could change quickly. were to callxi president trump, that might help things along area trump is often concerned if the stock market has a slide area we saw that back in november, december, he was concerned.

we also heard president trump and president xi may meet at the late june. in osaka june 20 8, 29, it is a long time away. this is many weeks of -- june 28, 29, it is a long time away. tom mackenzie in beijing and editor ros krasny in washington, thank you for joining us. still to come, trade turmoil in the markets did not help uber on its first day going public. we will hear from the ceo. shery: with the trade talks shaping up the market, we will talk to a strategist navigating the volatility. this is bloomberg. ♪ his is bloomberg. ♪

paul: we are counting down to

the citi open, futures pointing best sydney open, futures pointing -- we are counting down to the sydney open, futures are pointing higher. i am paul allen in sydney. .hery: i am shery and you are watching daybreak australia. it could be a roller coaster ride on wall street with continued uncertainty over the trade feud and the fresh round of earnings in the mix for you we are seeing u.s. futures now .8% afterdown the tweets from president trump on trade. su keenan joins us. you have been watching the latest moves. it would not be surprising if we saw a little bloody spike next week. su: you have this analyst from volatility -- we saw spike next week. an analyst from amp

capital saying so. but all your seatbelt, u.s.-china trade dominating. take a look at the way we closed bonds,e dollar and futures being watched by many wall street professionals going into this open. you can see a red across the seine. let's go back into the bloomberg because needless to say even though we saw wait -- late date buyers bring everything into the green, it was the worst year, friday began that way with heavy sentiment hanging over the market. one strategist in the u.s. said the market was clinging to hope and that is why you so late day buying. will we have that hope on monday? that is the question. look at the earnings parade. we have two huge online retailers out of asia, alibaba and tencent, both set to open, report earnings wednesday.

they are up 30%, 23% year to date. alibaba in particular will be dependent on what is going on with the u.s.-china trade. you have this, one of the biggest top-performing chip stocks. reportingso a key thursday. shery: the uber -- paul: the uber ipo with the most anticipated of the year and didn't really go as planned. how is day to showing you -- shaping up? su: some critics were waiting to pounce on the way days to begins. -- the way day to begins. begins. didn't start trading until afternoon than down eight point 8%, almost 9%, below the ipo

price, managed to close with a 43 handle, not what investors were hoping for. big question whether it has a chilling effect on other similarly hyped ipo's and the you cold -- the so-called unicorns let's start in the billions before they make any money. paul: su keenan, thank you. our next guest says markets were assuming the trade deal was done, but investors for the underpricing the breakdown in talks. and shea strategist, joins us now in sydney. it has been an interesting weekend. larry kudlow says this is a negotiation, not a war. what does it look like to you and how long will it be before we get a truce? >> we are in a negotiation and the consensus in the markets is we eventually reach a trade deal here that would be our base case.

the underlying issues go to more than just trade. it is really that broader relationship. that is where we see the possibilities for tensions continuing in the future. there is this -- the last week is spoke to the fact the underlying relationship will be with deep intentions and it will be difficult for people in china to reach a consensus with the u.s. on issues like intellectual property reform, technology transfer and such. the events of the last week whereby the fact we are five months into a negotiation and china wants to walk back on the wording of the deal when we are in the final stages really speaks to the fact this underlying relationship will be difficult to maneuver in the future. where we are at the moment, these diplomatic negotiating stance, this impasse which is a non-deal in a sense plays well

into both hands at the moment. it plays well into president of that thes anti-china stance has become a bipartisan issue in the u.s. and into president xi's hands as well in that he is appearing to ot be strong-armed by the u.s. this diplomatic standoff whereby both sides are saying negotiations will continue but we haven't reached a deal could continue for some time. that is a possibility markets are underpricing. we are trying to game this out, we haven't had a response yet. if you want to get defensive, what is the worst case? eleanor: we are waiting for a chinese response. they have been clear they will retaliate. we are expecting another round of tit-for-tat measures. it is likely the chinese will do some targeted retaliation aimed at trump's voter base and swing states because probably their

long game is trump doesn't succeed in the 2020 reelection election. on that basis we are looking for that but we can look at other , holding upasures goods in u.s. ports, targeting u.s. multinationals operating in china. beijing has a lot of control over the state of the nation within china, the people as to what goods they purchase and they can target u.s. multinationals, something the u.s. can't do to china. aery: what you say now is matter of how much equity markets fall, not if they will fall? seeingcally we could be the s&p 500 moving towards the 200 day moving average 2776. doesn't seem that far off. eleanor: the market has been relatively sanguine on this breakdown in negotiations but that is certainly something that

could change if we look at short positioning on the vix. that shows a rapid escalation is possible in market sentiment and we could be looking further forward in the s&p 500 and chinese markets as well. it was interesting the breadth of selling wasn't that bad. winnersore picking the and losers. does that make a case for the resilience of this market really? eleanor: certainly this market has been almost bulletproof. that is probably 90% of the fact central banks have switched into this dovish. and accommodative stance, allowing the market to continue ander -- this dovish pivot accommodative stance allowing the market to continue higher. but people will have to sit back and look at how far this dovish central-bank stance will carry.

that is something market participants are complacent about. paul: i wonder about the impact in australia. the rba will probably have to use -- this trade war is another factor. the hurdle for the rba is quite low. they have pointed to the fact the labor market is crucial to their outlook. if we look at leading indicators of labor market strength, they are pointing to the fact we are going to get softness creeping in. we look at anz job ads, capacities and libation in this business survey, the employment sub indexes, and one of the big factors is the downturn in the residential construction market, building approval, pointing to the fact we will get a pickup in job losses within the residential construction sector. it is only a matter of time before the rba has to move to

cut rates. paul: thank you for joining us pray we will have australian jobs numbers out. plenty more to come. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. journalists and analysts in more than 120 countries.

paul: i am paul allen in sydney. .hery: i am shery ahn you are watching daybreak australia. we are watching tensions on the futures market with futures .1%, at 1.1 .1% three we have the latest tweets in the past hour or so talking about china breaking the trade deal that the u.s. is right where they want to be with china. all of that being felt in the futures market, paul. on futures forck this part of the world we have all of the futures pointing higher but they reset 20 minutes

before the open on the latest news out of the u.s., you can expect those to change but other futures pointing higher for nikkei and seoul. u.s. ist trump says the right where it wants to be on china trade talks. ♪

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paul: it ispaul: 8:30 a.m. in sydney, futures pointing higher, .ooking reasonably healthy i am paul allen in sydney. shery: i am shery ahn in new york. let's get to first word news with su keenan. su: we start with president trump who is warning china to be wise and act now on a trade deal, saying it will be far potential second term in office in 2020. feels it hasijing been beaten in the round of trade talks and the government may deal -- feel it is worth

waiting for the next u.s. election. he said we are right where we want to be with china and repeated his claims that they broke the deal. at present the two countries have reached consensus in many aspects but frankly speaking differences still exist. i think all of the matters are crucial ones regarding our principal so every country has its principal and we will make no concessions on matters of principle. onboth sides will suffer this, chinese will suffer gdp losses and so forth with respect to diminishing export market. su: the government and iran has rebuffed president trump's suggestion that ministers call him to diffuse tensions. several lawmakers said the deployment of the u.s. federal group to the middle east is nothing more than a stunt and worth -- war is not on the horizon. antagonism worsened this month after trump eliminated

exemptions to iranian oil. -- a cargo ship has arrived in american samoa. it was a three-week voyage from indonesia where it had been detained since april last year. washington claims it was used by pyongyang to deliver north korea coal to china and other buyers. the north has resumed test launches of short-range missiles. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. latestwe have seen the trade tensions being felt in the currency markets as well with the yuan retreating, the yen strengthening. we will see how that affects the rest of asia. let's take a look at

nikkei futures in chicago which are slipping along with s&p futures which fell as much as 1.1% while the yen is climbing, trading at 109.74 and the offshore yuan is on the retreat. we have it treated at a four-month low, for a sixth straight day of declines. that would be the worst since june. it could push to even seven a dollar. seven we have gone from trade news euphoria to total mystery. let's check on the stocks to watch. looking at movers in sydney, the commonwealth bank interview with its third-quarter trading expected. real estate listing firms, domain and rea, after the government promised to help support lower income first time buyers by helping with deposits. afterease is on the radar reports that this construction

group could be a takeover target for a japanese company which is speculated to be mitsui. paul: let's get more on what we should be watching as trading gets underway. we are joined by global markets editor adam haigh. early moves monday but fairly muted. what does it tell us about how investors are assessing developments? adam: it has been an interesting open for fx markets. a little bit of risk off, the yen strengthening the only .2% and the yuan is down. on the s&p futures 500 a short time ago, we saw a big lunch one to the open. that doesn't bode well across asia this morning. it is a negative set up. what that speaks to its a liquid market where investors are dialing down there risk given what they have seen over the weekend and since the talks ended on friday.

it is playing into the playbook of -- there is still a lot to go over the next few weeks, not enough for us to be very secure, that we will get a material deal that will allow investors to be adding to risk asset positions. essentially we are coming off the back of a poor week for equities last week and the start of this week looks very poor as well. one notable market last week that got hit hard was you have a really poor week for the u.s. stocks. stocks and sales got heavily hit. you had a bit of a rally on friday, state funds buying equity positions and trying to stabilize the turmoil we had seen in the earlier part of the week and the day. what we are looking out for at the start of this week in chinese markets is whether in didi authorities -- whether indeed authorities will try to stem these declines that have been severe in shanghai on the mainland.

shery: we have seen a huge run-up when it came to junk bonds. could we see them take a hit from this? would there be good value in junk bonds? i think for many people the extent has been somewhat surprising. in a sense it has moved in line with equities as people wanted .o take a bit more risk this chart in the gtv library shows you the extent of how we have come off of those lows seen in december and they have rallied in line with equities. but there is a market that is positioned for further gains, but it is attractive from a valuation standpoint in terms of heading on downside protections. -- heading on downs -- betting on downside protections. the pricing is very suggestive of levels that you want to get

in and take some protection should we see some kind of continued fallout in trade tensions that might further pressure the job market. clearly there will be people wanting to look to take advantage of those as we watch the headlines on trade over the next few hours and days. shery: thank you so much for that. you can find his charts on the gtv library. will bring in the global advisors partner and head of research and or bistro. great to have you with us. to see president trump saying china is the one that broke the deal, that they tried to renegotiate. can you get an agreement in this environment of distrust and suspicion? >> the good news is you don't need trust. there was little trust between the soviet union and united states in the 1970's and between the u.s. and iran when they

struck the iran nuclear deal a few years ago. trust and be done without. what you need is a level of civility and cordial relations. in every trade deal there is the what and the how. in terms of the what the deal is well cemented. the question is the tone of that conversation and if trump will let the chinese save face. we saw some of the chinese reaction from media reports, now releasing this willing tog china is reach a deal that will never go on these -- and the u.s. has added to this has drifted between express a optimism that exceeds the actual situation and arbitrarily raising the tariffs. how have negotiators measured that so far? is china right, the u.s. has

been erratic or is it a strategy that could work out? andrew: this notion that the chinese decision-makers are very sensitive to feeling bullied or humiliated, it is true. we have seen that be a sticking point in the late 1990's and other times in chinese history. that is accurate. xi jinping is the strongest leader in decades. he really has an opportunity to push through. the idea that china -- the chinese leaders face domestic backlash if they sort of selloff china's interest, it is overhyped and used by the chinese themselves. as a base case we have to assume this will get resolved

eventually, but what is the time horizon really? does president trump have a point, the chinese hoping they will get somebody else to negotiate and 2020? -- in 2020? anywhere near 2020, late in the year, the market will start asking not so much when the deal comes but whether it will come at all and that could lead to a dramatic selloff. there is some sense of urgency not just on the chinese side but on president trump's side. china is much less resilient economically and with tougher more from the absence of a deal on the economic front but politically given the leadership state power and the election in 2020 for the u.s. president, president trump has more to lose. there is and but this for him to make concessions over the coming weeks and months. paul: then 2020 is the end of june and

the g20 where they will be able to meet. they do see -- they did exchange some letters. is there a problem with the venue for 2020? andrew: that is very important. i expect a meeting between the two of them to happen in osaka on june 28 during the g20, but it is unlikely china would agree to make concessions or agree to a finalized trade deal on japanese territory. it means this could be a milestone, but you could see a visit or meeting before and after. it is interesting june 1 is when the increase in the latest tariffs will go from 10% to 25%. -- number four will come later. june 28 is the second deadline and later in the summer the next

round of tariffs. shery: on the staying power of the chinese leadership, xi jinping is president for life now. is that a liability or asset when it comes to negotiating? is very much an asset on the chinese side, meaning on the u.s. side, that makes the u.s. life more difficult in the idea that xi jinping can stand off if he needs to. there is a positive for the u.s. that it is easier to negotiate with a strong leader than with a weak and divided leadership. a hostage crisis, you want to basis. acto be experienced and professionally. so xi jinping doesn't need to make assertive rash and aggressive displays of force to a domestic pander to

audience. he has the confidence to take the high road if and when appropriate. paul: andrew bishop, global advisors partner and head of policy research, thank you for joining us. for true turmoil in the markets, it didn't help uber. ipoes closed 7% below the price on friday meeting plenty of people will be watching when markets resume. the uber ceo spoke to bloomberg technology at the new york stock exchange as shares began trading. today is a tough day for the markets with all of the china uncertainty, no one knows where that is going. you can't pick when you go public. howcan't -- you can control you execute as a company, building a great service, bringing in happy consumers all over the world.

we will focus on what we can control. we raised a lot of capital to invest for many years. that is what we are focused on. emily: the president set the market with his tweets, we have trade talks on the rocks and there is a lot of red. how much of this has to do with that and how much with uber which is still making millions a year? improveve a road to profitability. and automation of lots of things. there are external issues and internal issues are you i don't spend time worrying about what is affecting -- issues. i don't spend time worrying about what is affecting one. our aim is to have a great service. if you focus on that, we will build value. emily: you were on the road and the price dropped to sort of the lower end of the range, lower than what your bankers had

floated a couple of months ago. what were investors responding to an telling you? ofthere was a group investors that loved of this story, the platform story of transportation, $12 trillion market, but i think how hard it is to execute on that vision, how expensive, those are all challenges. the good news about the road is we found a set of investors who are long-term oriented who believe in our vision and now we have to execute to make sure the best they made on us was a great bit. -- bet. shery: that was -- paul: the uber ceo. an alert on the bloomberg terminal now, commonwealth bank of australia, the largest listed company in the country out with third quarter trading update, net profit $1.75 billion from

commonwealth bank, does report outside of the cycle of the other three major banks. ino adding 700 $40 million customer -- $740 million in customer remediation. quarterrecap am a third unaltered cash -- $1.75 billion from commonwealth bank. shery: we stay in australia because next, less than a week until the australian election we will ask how much the economy and housing market will affect the outcome. this is bloomberg. ♪ . ♪

paul: we are heading into the final week of the australian election campaign with the labor opposition still leading. let's bring in our australia energy editor ed johnson.

what are these numbers suggesting? therter: labor is still in lead, 51% on the two-party preferred vote. that compares to scott morrison's liberal national coalition on 49%. that changed from a week ago. that is not great news for morrison. he has managed to close the gap with labor. there were -- they were eight points ahead before the start of the campaign and he has brought two-point lead for the labour party but it is not enough to morrison. the polls indicate labor will return to office for the first time since 2013, possibly with a 10 seat majority in the 151 member lower house. one issue playing into the campaign is the property slump. home prices have remained subdued. the property index also in the

red in the bottom panel. how are the main parties responding? >> you are right, they are indeed in a slowdown, prices are down about 8% year on year, nationally, according to the most recent data released at the start of this month. but it is not the falling prices that have forced people to respond, it is the fact that for s, propertyaustralian is too expensive. there is an entire generation of people locked out of the property market and that is how the parties are responding. oror has pledged to end tax scaled-back tax incentives for property investors that were blamed for turbocharging the market. scott morrison entered the fray with his own policy. he has said first home buyers earning up to $200,000 a year

will no longer have to provide that 20% deposit to buy their first property. they will only have to find 5% with the government guaranteeing the rest. labor saw this as a little bit of pre-election, pre-electoral magic and said they would match that policy if they win. regardless of the outcome on saturday we will see first home buyers in australia getting support and a leg up for property data. managing editor and johnson. it is an election day coming up this saturday. you can watch us live and see .ast interviews on tv you can dive into any of the securities and functions we talk about and can become part of the conversation by sending us instant messages during our show. this is for bloomberg subscribers only. this is bloomberg. ♪

it has been a bumpy weekend for bitcoin, surging more than $1000 since august as all the major cryptocurrencies extended a rebound. currencies had been suffering amid -- amid a new york attorney aneral investigation over cover-up involving crypto exchange. lotus is looking to hire 200 engineers to accelerate its turnaround plan bankrolled by china's automobile. lotus aims to triple production to 5000 cars a year and open a new engineering center in the midlands. ais chinese company took

controlling stake two years ago in a 100 million pound deal. paul: china has passed the u.s. and europe in the race to attract top scientists. salaries are being offered to top talent, virtually the same in china as in the west. competition for skilled workers is rising. they say china is becoming a leading innovation center well to learn next generation scientific leaders. shery: top auction houses sotheby's and phillips are holding new york sales this monday. roscoe and crews are among those ake tens of t millions of dollars. $1.3 billion. that is how much hundreds of works of impressionists and contemporary art will fetch when they go under the hammer. sotheby's, krispies and

phillips. most important auction of the year and track -- competition is fierce. securing a blockbuster painting or high-profile collection is key to driving interest, traffic and can lift selling points across the board. this year's blockbuster is a moan a. -- a monet. >> there are only 25 in the world, only for that have been sold in this century. this should do well at auction, the highlight. >> when you say extremely well, what are we talking about? >> in excess of $65 million. my own personal view is $55 million is a great value. >> who is a likely buyer? >> an american or someone from the eastern rim but i wouldn't rule out europe or the middle east. >> they have gone further to attract buyers and sellers. they have completed a $55

million renovation of public galleries inclusive -- increasing the space of seats and dramatically altering how work will be displayed. >> if it is lit well, presented well, curated well, the narrative is told well, and it can be things like what it is with, the collector, a collection the peace is in, -- is in, people will pay more. >> sellers have turned to guaranteed or minimum prices when auctioning their art but this year those rates are down at sotheby's, suggesting renewed confidence in the health of the art market. is why leading indicator those -- wine. >> we look for art and jewelry to do well. the wind did well, so we feel good. >> you are happy about the

season and the year ahead. >> we are focused on the season. we are optimistic about the year. >> high numbers looking forward to the shout going, going on gone. ♪

paul: good morning. we are under an hour away from the australian market open. shery: i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to give occasion. daybreak asia. this our topsoil is monday, president trump morant about striking a deal on trade. oil slides