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. wall street recovers as president trump strikes a more optimistic tone in the trade. the dollar strengthens and treasuries fall. the new york fed president sees on effects from the trade war but john williams says there is no need to cut rates.

>> i think the policy is in the right place great i don't see a reason to have a bias upward or downward. paul: nissan hits rock-bottom as profits go to a decade low. we will look at the road ahead with the plan stuck in neutral. shery: let's look at how the tuesdayclosed in sessions. we have them coming off of the worst selloff in four months to gain ground with the dow up .8%. that rally faded into the close, still big exporters like caterpillar and boeing were able to reverse some of the losses we saw monday. tech also have gains on the s&p 500. we had energy up, oil gaining ground after we heard some drones had hit saudi arabia's main crude pipeline. the nasdaq gained more than .1% and treasury yields were higher in gooding commodities.

alson and soybeans rebounding. president trump once the fed to help him out with the trade war. calling out to match whatever the pboc is doing. futures unchanged. we will see how we are setting up for asia. sophie: futures are pointing to gains but strategists see room for corrections. evaluations are attractive enough to buy. with poor report cards from nissan and hong kong, that could it is the last heavy day of the japanese earnings season when the biggest banks report after the close. we are waiting on samson's quarterly business report. this wednesday we will get results from tencent and alibaba which will offer a. check chinese -- a pulse

on the chinese economy. ahead of all of that 10:00 hong kong time china will release monthly activators -- indicators that will show continued rebound out be it at a modest pace for april and we will get figures from india and indonesia. korea's on implement rate and australia's wage data also on tap. was get to first word news with jessica summers. reporter: president trump has defended his china strategy saying it is a squabble. he insisted the u.s. has been treated unfairly for decades but the trade war will turn out extremely well. wall street recovered as the positiveested comments. the s&p 500 rose for the second time in three sessions although it is down 4%. is: the relationship we have extraordinary. but he is with china and i am

for the usa and it is simple. we are again in a very, very strong position. they want to make a deal, it could absolutely happen. reporter: president trump is calling on the fed to mask -- match china's efforts to support its economy in the midst of the trade spat. he said beijing will be pumping money into their system and raising rates to make up for the business they are losing. he said it would be game over if the fed did the same and he thinks china wants a deal. the u.k. prime minister theresa may is aiming to put a key piece of brexit legislation to parliament in the first week of june after the cabinet ruled it imperative the main bill has passed before mp's leave westminster for the summer. jeremy corbyn will not support the deal without concessions handouts the credibility of the promises the government has offered.

unionsiation safety warned about safety flaws on the boeing 737 max months before it was approved for service. of the times is the latest was given the green light to fly despite a vulnerable control system and problems with the fuel tank. the union said at the time the boeing had been given -- that boeing had been given too much authority to oversee the sale of its products. 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 jessica summers. this is bloomberg. we mentioned earlier u.s. stocks staged a sharp reversal from monday but did not recover all of the losses. su keenan has been watching all of the asset classes. what if anything changed today and what was different from yesterday? offer a number

of viewpoints for you haven't really had an opportunity to buy on the dips since last week which is -- which was a big pullback from record levels and the biggest declines in the market so far. you also had president trump's positive remarks but he tends to wax and wane and you saw that rally faded into the close leaving you questions for tomorrow. take a look at the snapshot. vix camecan see is the down, volatility in a big way, on monday so that is a big change. volatility is less produce all the futures almost flat going into the tuesday session, a lot of it there. -- of hit there. these were the sectors beaten up in the monday session. the tech shares were down and then came back but not back as much as they had fallen, so not all of the losses erased. staying with industrial sector you will notice a bump from the

drop-off in the prior session but -- not sure if we have this but let's go on -- there we go. you see against a rebound but not a huge one. let's take a look at the bloomberg. if we go in to gtv is where you can find our library of charts. tradersthat's by bond that it is likely going to raise bets by bond-- traders that it is likely going to raise rates. widelyone of the followed ones of thing there is a 50% chance of a recession and a much greater one going into the two-year timeframe. over the next 12 months 50-50 chance and that the bond market exposed through any decline in the dollar. talk about the

stocks that were leading that. how much of it was bargain hunting and how much genuine optimism? is an interesting question. the drop-off in the rally toward the end indicates some uncertainty. but sega look at the way these stocks traded -- let's take a look at the way these stocks traded. these are the huge exporters, theyboeing, caterpillar, came back less than 2%. they were down more than 5% in the monday session. chemical stocksunder, they camey by a fraction of what they lost. let's take a look at the big tech stocks, a lot of analysts talking about companies with exposure to apple and concerns with apple forced to raise the price of its iphone. you will notice some of those stocks like micron and dialogue so my conductor came back bigger than apple did. also -- micron conductor came

back bigger. apple was down on its own independent news, big surge up 10% and then fell by almost as much. the ipo's got badly beaten up in the monday session. they had some of the biggest gains, uber with its first positive day in its third day of trading since its ipo. some of it may have been short interest rate we have a number, $768 million or 11% is now short of thet compared to 50% lyft buyers are investors heading it goes lower beyond goesalso has some -- lower. beyond meat also has thought of going lower. now we are seeing the reversal. what is happening?

su: we are getting early indications of a big increase in supply which undermines the tight market theory. we are seeing a lot of the gains of the most recent session, but look at this because you can see in the regular session we had oil come back, the spike in the prior session had to do with the shipping situation, a lot of concern about the drone attacks but again the overarching future is going to be the supply. after its it sagged big surge on the trade concerns but there are many including a widely followed hedge fund that betting that year, gold will continue to do well china and a bubble in we saw metal and soft commodities come back. thank you for that update. while president trump's comments eased concerns, he also enlisted help from the federal reserve. us from hays joins

zurich where she spoke to the new york fed president. -- kathleen, he is pushing the fed around again. why? stephen: kathleen: he figures he needs help. said fed, help me out. the people's bank of china is helping xi jinping in this trade war. here is the tweet from today that got so many eyes and ears. china will be pumping money into their system, reducing interest rates as always to make up for the business they are and will be losing. if the federal reserve ever did a match it would be game over, we win. in any event china wants a deal. john williams, and i must say speaking before trump came out with the tweet, i don't think it would have made a difference into what he said. he is watching the tariff more

but the reason he is not looking to do anything close to what trump is asking for, he thinks the economy is in a good place. he thinks first quarter growth looks solid. here is what he said. we need to do looking ahead of whatever happens, whether it is trade issues or others, it is just keep our focus on achieving our goals, ability, we are close to the gold and adjusting our policy stance for whatever happens so we can achieve those goals. sort of challenged him on the headboard -- look at the weakness in investment, how investment came that consumer spending came down sharply, final sales over 1%. is stille saw that but confident the economy is strong. he also acknowledged china's stimulus has helped stabilize the economy. he sees that as a plus in a

global economy that was weakening and now looks like it is on a sturdy footing. shery: not opening the door even a crack. kathleen: no and it is not because he doesn't know there is a tariffs more but because he doesn't think they are having an impact. listen to what he said on that front. he is looking at both sides of this. >> i do think the tariffs is a negative supply shock. economy, in the affects inflation, boost inflation fight a few tenths over the next year, it affects demand and growth in the short run but also has negative effects on the value chains and how are our economic system works. alsoeen: he

inflation even more. the idea of tariffs being a supply shock is they happen. they will boost prices for a while but after a while it settles and the price increase trend you have to see to keep boosting inflation higher, that is why he is not concerned. i asked about financial market volatility, the recent drop in stocks. he said it is a factor that affects the economy when financial conditions tighten, but it is not changing the fundamentals now. he is sticking to his guns area inflation is close to target, not there, the economy is on good authority, the door is not open to a cut for him or a hike unless the data ends up showing the fed that is what it needs to do, move in the appropriate direction whatever it may see. paul: the fed always data dependent, policy editor kathleen hays joining us from zurich. nissan even more pressure -- under even more pressure after it falls below even the most pessimistic estimates. joins us toomeone

discuss the trade talks and the market action. this is bloomberg. ♪ . this is bloomberg. ♪

shery: we are counting down to the sydney open, gray open but futures looking positive. we have more positive numbers out of u.s. equity markets rebounding for the worst selloff in four months. the aussie dollar consolidating around $.59. we are awaiting australian first quarter reports. i am shery ahn in new york. paul: i am paul allen in sydney. you are watching daybreak australia. president trump reassured investors he will clinch a trade deal with china. joining us now a chief portfolio manager, caleb silsby very we saw a rebound in the u.s. -- caleb silsby.

we saw a rebound in the u.s. but we also saw how complacent markets got before the trade tweet from the president over the weekend. is this a genuine rebound or complacency again? caleb: the way we look at it, the market outcome will be binary based on trade negotiations and difficult to predict exactly what president trump will do or tweet on a minute by minute basis. we can follow the incentives. if we look at the incentives, china obviously wants to stay integral to this supply chain with over $500 billion of toorts, very incentivized have a deal done here. president trump of force with the election next year also wants to get a deal done. we talk about this internally, talk about if you can manufacture a crisis only you can solve, then you start to

the stockpring of market. over the past several days the stock market has seen weakness. trump is fine with that, strong start to the year, decent weakness here knowing as trade gets negotiated and worked out, stock market will pop back up. , and they incentives say a deal does get resolved. the resolution of the deal is the first step. enforcement will be a challenge. butee a deal being resolved that being the first step. you are optimistic on the state of the u.s. consumer but as this trade dispute does grind on, there ear the consumers to b brunt of these tariffs. caleb: and small business as well. it is a challenging time for everyone on the supply chain and small businesses that are planning logistics and trying to

as well.ing all of it is difficult. i think we have to look past that. once the trade resolution does case, which is our base we go back to a fairly goldilocks environment, small business optimism higher than any point during the 1990's, which is growing or that 3%, unemployment 49 year low. and all of that with very low inflation importing from china and europe. when you see the resolution with this trade deal, you move back to a fairly goldilocks environment. we saw analyst estimates become less and less negative. this chart showing the uptrend, but is it at risk if the stayrists -- the tariffs in place? when do you measure them into your outlook? caleb: that would be very much

at risk if tariffs were to be continued. . think after the g20 i think we have until the g20 to sort of see how this develops with the base case is still being there is resolution. if you get past the g20 and there is no resolution, then the numbers will come down meaningfully. you have to take a long-term view. shery: can you take the long-term view when it comes to inflation? we saw the downside miss for april with cpi but tariffs are expected to up consumer prices. how much of a conundrum will the fed be in? made it clear has they will be data dependent and instead of holding the cheaper threshold they will make it more of an average. the fed will wait to the data to come through. i don't think they have to anticipate the inflationary

pressures from tariffs and i don't think they will. they are likely to assume they are paused until the data proves them wrong. i don't think tweets from president trump today will elicit a cut and i don't think terrorists,r although certainly would be inflationary, i don't think that is enough for the fed to act. paul: before we let you go i want to get your thoughts on a stock specific question. you are a fan of disney. can you explain your appreciation? a year or two ago people thought disney as a loser in the t and cutting ot the cord. now i think they are well-positioned to be a winner. good aftert look so their deal with disney, now comcast has negotiated a higher price.

disney has 78% of, or two thirds of hulu and has negotiated a contract for control. they have 42% of the box office and control the content and distribution. they are very well-positioned here. toe sports clearly a key monetizing content and espn with threats over the past several years, continues to be the leader there. we like disney and think it is well-positioned, and they are doing ok job completing against -- competing against netflix. roundup ofcan get a the stories you need to get your day going in today's edition of "daybreak." \it is available in the bloomberg anywhere app. you can customize settings so you only get news on assets you care about. this is bloomberg. ♪ is bloomberg.

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allen in sydney. shery: i am shery ahn. let's get a check of business flash headlines. top apple survivor -- supplier below quarter analyst estimates because of the sagging iphone sales. it was at $36 million for march, compared to $767 million average in a bloomberg survey. facing growing uncertainty with the founder preparing to run for president in taiwan. smartphone market is stagnating. paul: weakness in this program has allowed outsiders to hack into phones using spyware from israel. they make changes to block further attacks. the group is that were able to insult surveillance software. the group has denied any

knowledge of the attack. shery: disney is taking full control of hulu to compete with netflix through the strategy with comcast that sees hulu value soaring to $27 billion in five years. that would even be a fifth of netflix's market cap. comcast could have a windfall by 2024. disney expects hulu to double its subscribers to 60 million by then. nissan hit strong bottom as earnings fall to a decade low. looking at the road ahead. this is bloomberg. ♪ ♪

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. paul: it's 8:30 a.m. wednesday

morning here in sydney. local markets open in 90 minutes. futures pointing higher at the moment. that rebound that we saw in u.s. equities. i'm paul allen in sydney. shery: we are at 6:30 p.m. in new york. my watching daybreak australia. let's get the first word news. sees weaknesstal in the u.s. economy despite the administration's mantra of growth. the atlanta fed forecast real gdp at 1.6%. the economy has been expanding largely because of debt.

also says the bond market is now extremely exposed. saudi arabia briefly shut its biggest oil pipeline after attack drones targeted to pumping stations. a rebel group in yemen claims responsibility for the attack. the u.s. ambassador to saudi arabia says separate saudi claims of attack on oil tankers should be investigated but need reasonable responses short of war. no one has claimed responsibility for those attacks. iran dismissed the claims as a plot to stoke further interest. says venezuela is falling apart and the government continues to try to silence the opposition. he says there are many ways of resolving the crisis and that he has been in contact with the u.s. military. sources tell us that washington is unlikely to agree to why does request for an executive order protecting venezuela's assets

from creditors. japanese investors do seem to be in love with french bonds. in march, they bought $30 , almost as much as they spent on debt for the entire rest of the year. it shows how japan is shedding decades of cautious investing habits to pounce on quick returns amid a global decline in yields. yields in japan turned negative at the end of last year. 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. this is bloomberg. asia stocks hovering around the lowest level since january on these ongoing trade tensions. let's see how we are setting up for trading today. >> we are setting up for gains and gnashing -- in asia after that rebound. half-hour into the session, nikkei futures in chicago are

extending. u.s. futures pointing to future gains. investors may be betting on an individual trade deal between the u.s. and china. in on the yen, it is holding onto an overnight drop after retreating from 109 against the dollar while the offshore yuan is stabilizing this morning after a six-day decline. we aren't seeing much movement in the aussie dollars. traders are waiting on china's monthly data this morning. cable looking steady after slipping to a two-week low on news that theresa may's brexit deal will be put the parliament during the first week of june. cross party talks will continue on wednesday. a quick check on oil. wti. crude giving back a sum of tuesday's gain after a report showed a big jump in u.s. supply which is offsetting geopolitical concerns. paul: thanks very much.

let's check on what we can expect as trading gets underway in the asia-pacific this wednesday. it looks like stocks in the region are poised to track that u.s. rebound. what we have here? >> i think it's a little bit too early to say. clearly yesterday's trade in the u.s. suggested that investors were willing to jump in at key support levels in the s&p 500. some of the leading industries showed stabilization. if thiso early to tell is a buy on slightly oversold conditions or if it's the start of stabilization. our working thesis is that we are going to be in for volatility for most of the next month as we await the g20 meeting. shery: minutes ago, we got this tweet from the former ceo of goldman sachs saying that tariffs might be ineffective --

and effective negotiating tool but says it hurts us. the process may demonstrate strength and resolve and where compromise needs to happen. how much two markets care about the nuances of trade negotiations? arewe have seen so far these knee-jerk reactions to every comment coming out of china or the u.s.. >> it's only natural for the market to react to the extremes. that is how equity prices generally behave over time. when news comes out to the negative, we price and the worst possible situation and climb our way back as we start to rationalize the realistic outcome. lost ing that is being the shuffle is, u.s. and china actually relative to most of the globe have at least -- fairly small trade.

the areas of the world that are most at risk are actually the other areas like korea, europe, where trade is a much stronger percentage of gdp. the market is reflecting this. you are seeing stocks trade lower globally, not just because of the anticipation of u.s. or china getting damaged by slow down and economic growth, it's about the global story. as to how remains much global growth will get damaged as a result of this renegotiation. shery: we will be stuck in limbo until we get some sort of resolution. perhaps at the g20 in late june. >> it seems likely. we have sold off so much already. we have sold off a lot more than the immediate fundamental impact of trade would likely be. that would suggest that mean -- we may waffle around here and trade on positive signals a little bit more frequently. resolution,ve true

there's not a lot of sense in jumping in. the risk appetite has been damaged and the investor base. that will be reflected in wobbly price action for much of the next month. paul: wobbly price action. spent this week talking about how markets have gotten themselves into a state of complacency. is it checking back in because things can always get worse? >> absolutely, they can get worse. in had a 5% decline in price ebit for the s&p 500. we have priced in the immediate fundamental risks of an all-out tariff on everything we trade from the u.s. to china and back. theave already priced in immediate fundamental downside. the question remains as to

whether this becomes a broader global story. that is why i highlight things like europe and korea. they will be sensitive to near-term economic data. we will be sensitive to monetary policy news from nations all over the world. we are sensitive but we have priced in a decent amount of fundamental downside here. shery: great having you want. thank you. bloomberg intelligence chief economic strategist in hong kong. as the markets get underway in japan in less than two hours, nissan hit rock-bottom with a profit forecast below the most pessimistic estimate. our chief north asia correspondent is tracking this. how bad was it? >> it was rock-bottom according to the ceo. he's asking investors, shareholders, everyone to give him more time. he says it will take another two or three years for nissan to get back to the levels precrisis. this is more than just the

carlos ghosn for -- fallout. it's the faulty model cycle. they haven't updated their models in a long time. he will introduce 20 plus new models. it's a struggle in the united states market where sales have slumped. he's going to revamp the u.s. retail chain. we haven't seen a formalized turnaround plan from the ceo yet. maybe he has been too distracted over the past six months. the mother -- numbers we previewed yesterday, we said it was going to be bad. we were quoting the analysts community. the result yesterday after the markets closed were worse than the worst-case scenarios. that's how bad it was. i can run through the numbers quickly. most importantly, the 2020 .utlook profits through 2020 will be

¥230 billion. 2.1 u.s. billion dollars. that is half the average projection of the ¥453 billion. it cut its midterm revenue target and operating margins as we predicted. paul: pretty dark numbers there. renault still wants a merger. >> they do. that is a delicate negotiation process behind the scenes between the chairman of renault and the ceo who has robust -- rebuffed any overtures so far. these results are going to impact renault as well. will wipe 56s million euros off of the results of her now. -- renault.

said that they agreed now is perhaps not the time to review the capital structure. he says also that they are open to discussing other options other than a merger. as far as his fate, let's face it, with this kinds of results he is facing lots of pressure from shareholders that he is perhaps not the man to lead this turnaround. he says he is not going to step down. the appropriate time will come at a later date. keep in mind, shareholders are not going to be happy. for the first time in a decade, nissan cut its dividend substantially. that could hit the stock when it opens up trade again today. paul: bloomberg's north asia correspondent stephen engle in hong kong. thanks for watching those numbers for us. coming up next, the council of

foreign relations on why the g20 meeting could hold the key to some resolution to the trade talks. this is bloomberg. ♪

paul: i'm paul allen in sydney. shery: you are watching the -- daybreak australia. u.s. stocks rebounded tuesday after president trump were to reinvest investors that a trade deal with china is still in the cards. >> we are in a very strong position. they want to make a deal. it could act -- absolutely happen. in the meantime, a lot of money is being made by the united states. a lot of strength is being shown. this has never happened to china before. our economy is fantastic. there's is not so good. shery: joining us now is the

bloomberg congress editor. we take -- continue to get mixed signals out of the white house. president trump today being more optimistic on the u.s. economy and how trade negotiations are progressing with china. still he's asking for the fed to help out as well. >> this is another continuation of his criticism of the fed. he has urged them to cut interest rates and accelerate bond purchases. now he is tying that to the trade conflict with china. centralsts that china's bank would make similar moves in order to boost its economy. he wants the fed to take action even though the u.s. economy is quite strong. it's a rather unusual position for the president, to want the fed to help them in this trade war. to insist that even though the economy is doing solidly with unemployment at a 49 year low,

that the u.s. needs more stimulus to continue on. paul: if the u.s. were to go down that path, what would some of the implications be for its relations with other countries? insisted,. has long long complained of other countries trying to influence their central banks for political purposes. if the fed were to make some moves that could drive down the dollar,e value of the which would certainly draw complaints about currency manipulation from other countries, it's something that the u.s. has long complained about. tradingationships with partners, currency manipulation. it might create a tangle for the u.s. as it tries to resolve other trade issues and go through with diplomacy with other nations, if the fed were

to follow his lead. shery: thank you so much for that. bloomberg congress editor in washington, d.c.. joining us now is the council on foreign relations who served as the state department's first chief economist undersecretary clinton. i will read out president trump's tweet. he's saying, china will be pumping money into their system and probably reducing interest rates in order to make up for the business they are and will be losing if the federal reserve ever did a match, it would begin them over. we win in any event. this is not the first time that the president has hit the fed for more action. weakness fromain the president -- portraying weakness from the president? the president should not be

telling the fed to do what he wants it to do. the fed is an independent institution. the comparison with pboc is misleading. the pboc is a state led institution and economy. it is not expected to play the same kind of independent role as we would expect from the fed. the comparison is very misleading. what we are looking for from these trade negotiations, i don't think that trump was signaling any weakness. i think he does believe he has the upper hand and quite a bit of leverage. that is one of the risks of these trade negotiations, the misperception of having the upper hand on both sides. shery: the president seems pretty focused on the tariffs

themselves. we have seen the usmca getting past but he is insisting on those steel and aluminum tariffs. could they be a goal in themselves for the president at this point? think that this is obviously his main tool of choice. there is a specific distinction with the negotiations with china. that is that, what is on the table is more than just tariffs. we are talking about an expectation that there will be give and take on what is china's development model. that is where you have a much larger expectation. the bar is quite high for something other than just a

tariff related negotiation to happen here. paul: is this something that needed to happen in the big picture? did the u.s. need to start talking loudly and carrying a big stick? was the china -- trade with china fair and unbalanced? >> you have a pretty solid bipartisan agreement here in the united states and a lot of companies that have become a lot more outspoken about the fact that there has been an unlevel playing field for a really long time. analyzinga matter of what the problem is and more, what are the tactics being used? are those tactics, i.e. the use of tariffs on both sides in a tit-for-tat trade war, is that the most effective way to thatss some of the issues

are recognized on both sides of the political aisle here as being a challenge? paul: the you think we might have an answer to that question soon? andd this turn on a dime de-escalate as quickly as it escalated? we have optimistic comments from president trump, a feeling that it is going to be successful. this sets us up for theater at the g20. >> it is a forcing mechanism for these two leaders to get together. as this has been building up over the past several months, there has been a next dictation -- i've had an expectation that there would be a coming together at the g20. anotherd see one way or , you either have a resolution where you have a deal that is struck, both presidents would like to see a deal struck. there are good arguments, both economic and the market

disruption we are seeing from an ongoing trade war. if you see the president walking away from osaka without a trade deal, there are a lot of risks that build up their if you have that lack of a resolution. that is a decisive moment that we have coming up at the end of june. paul: we will leave it there. thank you very much for joining us. we want to get you across some news. we do have fourth-quarter results for thing tell. operating revenue for the quarter, 4.3 2 billion singapore dollars. 773 million. $.10.dividend per share, out there with fourth-quarter results. you can watch us live and see our past interviews as well on our direct tv function.

you can dive into any of the securities or bloomberg functions that we talk about. you can become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. this is bloomberg. ♪

paul: you are watching daybreak australia. let's get a quick check of the latest business flash headlines. analysts expected things to be bad for nissan but not this bad. annual operating profits below even the most pessimistic estimates. it is cutting its dividends for the first time in a decade. results add to pressure on the ceo to deliver a turnaround, starting by cutting 5000 jobs, revamping the lineup, and

focusing more on u.s. sales. shery: the chances of janet airways making it back into the skies took a further hit. this eeo followed his cfo out of the companies. he cited personal reasons for leaving. they have yet to announce a replacement. the resignations come after lenders received only one conditional bid from a short list of potential investors. bass has closed his near for your wager against the offshore yuan just as the trade war heats up. they entered a short bid on the currency in july 2015 and held the position as recently as march when he argued that china would eventually deplete its foreign exchange reserves trying to support the yuan as tension with the u.s. escalates. >> i don't have a vested interest in simply china's currency anymore. this is such an important moment in time that all of the work

i've done over the past seven years is going to be moving more towards the political sphere than the financials fair. shery: we will discuss all that ahead in the next hour. david wu of bank of america merrill lynch will join us to discuss the big stories of the day. that's all it for daybreak australia this morning. we do have trading underway in new zealand. we are an hour away from the open here in australia. futures running higher by 4/10 of 1%. grows on the trade dispute. the aussie dollar pretty much unchanged against the u.s. dollar. that's it from daybreak australia. have all us, we will the action coming up in daybreak asia next. this is bloomberg. ♪

>> welcome to "bloomberg >> our topsia." stories this wednesday, wall street recovers as president trump strikes a more optimistic tone over trade. the dollar strengthens, but treasuries fall. knock on effects from the trade war. john tells