welcome to daybreak australia. i am paul allen. shery: i am shery ahn. we are counting down to asia's major market opens. ♪ paul: here are the top stories we are covering. time to talk again, u.s. negotiators going to china but little hope of a breakthrough. neither side seems ready to compromise. andour guest -- teargas arrests in hong kong, threatening to scare business and tourism away. markets prepare for the first fed rate cut in a decade.

u.s. inflation is stagnant, unemployment near a half-century low. shery: let's look at how the markets close friday in the u.s. the s&p 500 and nasdaq closing at record highs, the s&p with its biggest jump in three weeks, the nasdaq in five. we had twitter and alphabet leading the rally and positive results. that sent top -- tech stocks higher. this coming at a time when we had stronger-than-expected second-quarter gdp numbers. but did nothing to stop expectations at the fed. it is a busy week for earnings very and we have 160 firms on the s&p 500 reporting earnings, of this season. futures not doing much. let's see how we are setting up in asia. paul: we have the new zealand open -- we have market new zealand open, trading.

futures markets also looking reasonably positive area japan looking kind of flat, futures trading out of chicago not doing a great deal. similar for the kospi, futures pointing higher by .2 5%. also important week for the bank of japan, on central bank watch and we will have more on that story later on. for now let's get to first word news. reports from london say the u.k. is stepping up preparations for a new deal brexit with a senior advisor saying it will happen unless the european union reopens negotiations. they say the government still hopes brussels will change its views on new talks but they are operating on the assumption nothing will change your doors johnson has formed a six person panel to oversee the brexit process. >> i don't want a no deal brexit. but we have to face the fact

that at the moment we are being nothing will go further, the deal is fixed. with french of do our partners, we are going to continue with the discussions and we are going to get ready to come out on the terms that are necessary. su: france is pushing ahead with trumpon big tech despite threatening retaliatory tariffs online. he calls it foolish, but the french government said it will be implemented anyway. the finance minister insists the pressure is not targeting american companies and the taxation of digital activity is of universal interest. >> france should not understand the decision taken by friends to have its own [indiscernible] digital activities as any willingness of targeting

american companies. that is not the case. we are not willing to target american companies. su: to australia and singapore, they are among five countries market access to the european union. the financial times says brussels is targeting countries that do not regulate credit ratings. agencies -- credit ratings agencies as rigorously as the e.u. does. this would be the first time european market access rights have been withdrawn. spacex has completed its 18th resupply mission to the international space station. docked at the iss carrying 2000 kilos of research experiments and supplies. the experiments including a 3-d organ printer which will create nerve cells and let scientists see how they hold their shape in

zero gravity. 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. su: china's first -- ofry: two months increasingly chaotic unrest in hong kong. the weekend saw clashes between riot police and protesters in multiple locations. our senior reporter is at the scene of the latest violence. authorities are struggling to contain the unpredictable tactics. what is going on? i am in a residential district in west hong kong. we were here last week because along the road here, you can see what is known as the liaison office. this is a main representative

office of beijing here in hong kong. as it was last night, it was a focus of protest. the other thing that happened is when the police were clearing the protesters from this area, up here you can see is a pedestrian street that leads all the way up into the central area. police are using teargas. it went all the way up the streets into that residential area. this happened as a conclusion of an extremely chaotic three days of protest here in hong kong. it started friday at the airport, thousands of protesters went out to deliver their message to the terrorists coming in to hong kong. it was repeated with violent protest out here. it was the scene last week where , peopleanti-protesters

linked to organized crime beat up road testers in the trains going through that metro stations yesterday. on saturday the protesters were back out, this time targeting the police. here now it is cleaned up. i picked up this brick from the ground underneath me. one thing that is clear, these protests are becoming more splintered. yesterday the protest movement moved off some of them to causeway bay, some -- it is more fragmented, more difficult for the police to handle, the administration. paul: we are hearing reports that the hong kong affairs office in beijing will get reviews and it will be their first such public comments since the 1997 handover. how significant is that?

>> it is extremely significant. this will be the thing to watch all day. 3:00 in beijing, it is significant, the first time they have made any comment. any comment they do make could be interpreted as announcing that one country, two systems which people are protesting for everyone of the things they could do is do what we hear often from the liaison office, and a nation of the protests which complain they are per -- they are hurting the feelings of the chinese people but some are speculating perhaps hong kong and macau affairs office might come up with some sort of plan to remove the tensions. perhaps they will say they will completely withdraw the expedition bill. who knows whether it is enough to quell the unrest taking the city for an eighth week. tweed there on the

streets, thank you. the u.s. and china go back to the tray table this week for the first time in three months. -- trade table this week for the first time in three months. looming over the talks, new geopolitical issues and no sign beijing or washington will budge on key demands. let's get over to beijing now. our correspondent tom mackenzie. sounds like tuesday's talks could be frigid. it is interesting, we have had a few moves to try to put in place goodwill measures. you had the attempt by china to say maybe, you can buy u.s. agricultural products. and then you had the meeting with trump and tech executives to discuss huawei, to allow companies to provide -- supply components to the chinese telecoms company. equally you have had both sides coming up and downplaying

expectations for all the reasons you outlined. there is the background of geopolitical tensions, but in terms of trade talks themselves, we are miles apart. in some respects, china's position has become less flexible since may. they have outlined and been very consistent on this message of three key demands for any trade deal. one of them is the removal of all tariffs immediately. that is one demand from the chinese side. they want a balanced deal, which has less onerous demands in terms of purchases of u.s. agricultural rocks. the u.s. want to go back to the deal they thought they had when they were 90% of the way there before china did a u-turn, and went back on commitments. stillms like they are miles apart in terms of the trade talks. geopolitical tensions behind it. progress in the talks that will

run from tuesday to wednesday would be any agreement between the two sides to continue those talks in washington. there could be progress on agricultural goods, china suggesting it will restart writing u.s. soybeans. how significant could that be for farmers? tom: it was a goodwill measure and this significance could be minimal. five or six private and state owned company you can look to start -- we will remove the tariffs we put in place on the soybeans for those different companies. in terms of the numbers china has been purchasing in terms of soybeans, for the first half of 2019 the numbers of purchases have gone to the lowest level in more than a decade since 2004. so they purchased under 6 million tons of u.s. soybeans in the first half of the year. compare that to what they bought from brazil in the month of june, 5.5 million tons just in one month. they bought about 600,000 from

the u.s. in the same month. the purchases have really plummeted. that has put pressure on farmers and you have had the response from the trump administration to bail out farmers with additional funding. how sustained it will be and how much of a benefit for farmers is a big question, particularly with the purchasing decisions that are shifting trends and china is comfortable with the access to soybeans getting from countries like brazil and demand question, swine fever which is seeing the pig population estimated -- decimated. shery: thank you so much, our correspondent there in beijing. more on trade with the peterson institute senior fellow. we will ask what he thinks this new round of trade talks will yield. paul: the busiest week for the world economy is upon us. we will write down what to andct from the fed, the boj

other events to affect the global economy. this is bloomberg. ♪ ♪

going into the busiest week for the global economy in 2019 and so far policy decision from the fed, boj and the bank of england, our editor kathleen hays is in tokyo. let's start off with the fed. is the rate cut right -- baked in? kathleen: we would not even have to ask that question if the data had been consistent. a challenge for the fed ex when its rate cut which is like taking out insurance against the possibility of a steeper domestic slowdown in the u.s. is the fact that even the most recent gross domestic product number was stronger than forecast. let's look at these numbers and put this argument in

perspective. gdp was supposed to be 1.8%. instead it was over 2%. that is the nurse -- nice turquoise bars. this is consumer spending at a yearly rate, up 4.3%. it looks like a strong consumer. there is another side of this story and not just the mystic. the concern is what about the trade war? what about a global slowdown? will he go back to the same gdp report, it is strong but take a look. business investment is struggling. that is the turquoise line. the white line over 4% on the consumer but getting negative on business investment. you have a trade war, manufacturing slowing down, all of these things weighing on this. of course this will be very important in terms of what happens next for the markets. the fed policy statement, do they cut the rate and sound

hawkish, or are they dovish? what will jay powell say? people are also saying it may not be the start of rate cut after rate cut. this is always a big consideration. shery: the fed decision could affect thinking at the boj. too bad for the governor he doesn't have the luxury to wait for the decision. kathleen: usually seems the boj plans this carefully. the ecb signaled stimulus is coming september, etc., the fed probably going to cut but how dovish? they don't know. terrific interview by our tv team in asia. said in japan there does not seem to be the same kind of urgency. >> in interest -- it is interesting because it is more calm. people are looking at the exchange rate. if the yen were to step -- were

to spike up, it will move. if it holds current levels, i don't think there is any sense of urgency for the boj to do something. if there were to be a change, what the boj might do is a polite -- is apply yield curve control keeping it to the 15 year note as well. even so bloomberg economics says they will not change policy framework until 2021. japan's economy is still growing. even though sports are weak and asia demand is waning, 947 economists surveyed see some kind of tweak, making it clear the stimulus will last maybe even longer than people thought but the bloomberg news team here also reporting last week people at the boj are saying, officials that is, there might not be anything to gain from that and it could backfire.

brexit is hanging over the outlook. boris johnson is willing to drive the economy over the hard brexit cliff. that is why they are expected to stand on thursday. fory: thank you so much that, our editor from tokyo. as she said, it is a big week of central-bank decisions. let's get advice on how to position for it from our market analyst from i.t. group. he joins us from melbourne. here, has theon latest second-quarter gdp numbers last week, which were stronger than expected, changed the calculation at all for what we can expect this week? >> i don't think it does. the gdp numbers, as good as they were doesn't shift the narrative. listening to that conversation, the real concern at the moment is looking forward in terms of and whatinvestment will come along in the business

cycle moving along from here. if you look at the numbers, we get worth noting the isf manufacturing numbers. this is the best bellwether for -- it is still diminishing. we put into context, last quarter for gdp or growth last quarter was around 3.1% so we are seeing a slower u.s. economy. you can point to consumers being solid but it is a light cycle behavior. you can usually see this pickup as work starts to effectively spend the fruits of their labor. ultimately it feeds into the same narrative we had before but not as bad as we expected and it is setting up the fed for a 25 basis point cut. fromystery is what goes on there but they will probably have to begin something whether they like it or not. you mentioned consumer spending slowing down but if you see this chart, it is still 4.3%

growth. in an economy where the consumer is the most important art of where the economy goes, we are talking about the economy relying on healthier parts and having a healthier opposition -- healthier composition. you want to get into those sectors affected or depending on consumers? what would those be and should we be aware of the fact trade tensions could dampen sentiment? without a doubt. if i could distill it into a sentence, it is to effectively respect the business cycle, the forward-looking indicators and put anything that you do from a treating perspective in the broader context. we are seeing volatility because the risk factors we have seen driving market behavior in the last six months has not diminished. if you are going to look back at the you do -- the gdp number, it

is a lagging indicator. things are slowing down. the consumer is solid but it is not outside that narrative of u.s. economy that is entering late cycle. i think you have to see what the fed are trying to do here as trying to effectively extend the credit cycle with the hope of trying to push further down the line the business cycle itself. what it means is over six, 12, 18 months, we could see reasonable enough growth, risk-taking being a supposed undertaking in financial markets. at the same time there has to be a careful position around the fact fundamentally growth is slowing down and central banks, rather than try to engineer a soft landing are trying to push out the inevitable as much as possible. markets think they will be successful but it comes down to central banks delivering what they have marketed and implied.

starting to cut interest rates aggressively. paul: how much more can central banks do? we had mario draghi complaining of fighting the war on their own. this is something we have had the reserve bank of australia's people saying over several years as well. with interest rates really low, is it time for governments to start spending? and on what? >> this is the difficult part. the australian situation is unique because we have gotten very lucky for a long time as it relates to our terms of trade and ability to manage a fairly solid fiscal position. if the global economy slowed down enough we would not be exempt from that slowdown. the economy will suffer like it is now and we could not expect the chinese to simulate -- stimulate and support like they did post year. with europe, it is a structural

basket case and makes it difficult for conservative fiscal policy to come across the board and support the block. in the united states we see a situation where the twin deficits are exploding and it undermines the ability to stimulate the u.s. economy without taking on risks. they can do it, the u.s. being basically the world reserve currency can print money sufficiently enough to support the economy in the long term. if you look at the real structural issues, this is where the central bank has gotten frustrating -- they have done all they can to fulfill their mandate which they haven't been able to achieve because of factors outside of their control. cycle,nds the business don't fight the cycle, trying to extend it. the fiscal tools are lacking and the structural i suppose nature of the global economy means it beggar they- is

neighbor. it is very challenging and risks of that in and of itself. paul: colorado market analyst at ig group, thank you for joining us. you can get a roundup of stories you need to know to get your day going in today's edition of daybreak. go to dayb on terminals. you can also go to the mobile anywhere app. customized settings so you only get news on industries and assets you care about. assets you care about.

paul: let'spaul: look at how we are shaping up for the first trading day of the new week, new zealand trading under half an hour, higher by .1%, looking quite nice. nikkei futures unchanged, soul

futures are higher. on daybreak australia, one of president trump's most outspoken critics will soon be leaving the white house. this is bloomberg. ♪ e. this is bloomberg. ♪ hey! i'm bill slowsky jr.,

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paul: 8:30 a.m. monday morning on what is another good day on the harbor. futures pointing higher by about .1%. i am paul allen. shery: i am shery ahn in new york. you are watching daybreak australia. let's get to first word news. su: we are going to start with reports out of china that the top hong kong policy office will give its first response on monday to the continued escalation protests in the city. the weekend saw more master missed ration's locations across the city including violent clashes with police that continued into the night on both saturday and sunday.

49 people were arrested in what marks an eighth straight weekend. u.s. trade negotiators fly to china monday as talks resume after a two-month pause. they will travel to shanghai with little expectation of a breakthrough. recent days have seen mixed signals with neither side going to compromise. china indicated a readiness to buy more u.s. farm products but its purchases of soybeans have fallen to the lowest in decades. eight people were killed in a series of earthquakes in the northern philippines. it struck a key province which sima -- seismologists recorded 200 aftershocks. the government promised three quarters of $1 million worth of aid. the president described the area as on of the most treasured destinations in the country. it has been a gloomy summer for

japanese retailers with some of the worst weather in tokyo in over a century. temperatures have been 20% cooler than normal in the number of daylight hours recorded in the city is the lowest on record . it has been raining on the arede the retailers which reporting tumbling sales. 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. take a quick check for how things are shaping up on asian markets. new zealand, the only market trading at this time of the day. losing some of the early gains now, up only fractionally, nikkei futures are flat, seoul looking similar. there are a number of earnings coming out of japan. we will be keeping an eye on that here in sydney. .25%.s are higher

let's get to more on what we should be watching as trading gets underway in asia. we have the asia cross assets editor. looking at a mixed start for markets today. resume, the decision casting a long shadow over everything. >> that is right. seestors will be waiting to what will come out of trade. cuts largely expected to when a five basis points. we need to keep in mind there is potential for disappointment if the fed chairman jerome powell maybeany indication that we don't have any more coming. the sid -- the future contract quarter pointr cuts by the end of the year which is quite a lot. if there is any indication it is not going to come through, we could see a pullback.

we have got to keep in mind the u.s. markets closed at a record on friday, largely on the tech earnings. we have got the treasury rally sort of sustaining. the most crowded trade according to bank of america. of see if we don't sort jerome powell kind of indicate that there is more in the pipeline, a lot is already priced in the markets. shery: what are we expecting from china's star market? some of the frenzy of the first week might be done with. andreea: that is right. we've looked last week when the 25 new and listed stocks went up an average of 140%, largely undone by the end of last week. volumes fell as well. there was some indication emerging investors were shorting

some of the stocks. the question is now how will they perform given we have got other companies lining up to list on this market already three companies -- this market? already three companies are lining up. some 1200 -- there is 120 in the pipeline. demand for these stocks that are trading could come under pressure. on the flipside it is an attractive market for investors and companies because they can set their own valuations. for the first week of trading there are no price limits. as more of these companies lineup for ipo's to list on the stock market, you could see some of theseat coming out 25 companies that listed last week. shery: thank you so much for that. the asia cross assets editor. you can find her charts on the gtv library on the

bloomberg. this week investors will also be focused on an avalanche of earnings ranging from big tech, apple and qualcomm to big autos, gm and toyota, financials reporting. looking ahead, it will be the busiest week of this reporting season. peak ande hitting the you can tell by the names we will run by you and it is at -- the week is full of activity not just with the fed but other banks around the world taking action and the trade talks starting to resume. let's look at the big names. you see big tech, apple, financials like credit suisse, mastercard, general motors representing the autos and a lot of big pharma as well as the real estate companies and commodities like rio tinto. qualcomm, there is credit suisse, fiat chrysler, eli

lilly, and the in the big pharma announce whatould has been a talked about merger with its drug unit, off label or off patent deal. that could be announced as early as monday. that is expected to cause the entire field of generic companies to rally. that could bring these three companies alone a lot higher, put them in the spotlight. anticipated move, we get 45% of the company. it is really a boost for the generics. look up the other names because we not only have tech but also food companies and big oil, chevron and exxon at the end of the week, beyond meat, a new ipo that will have its first report. then you have big titans like -- former titans like general electric and kraft heinz.

what they have to say about the economic crosscurrents and the trade situation will be of interest to investors as well. focus on one of the current titans, apple. what is expected? su: a lot of analysts are expecting lower profit, flat sales. some are very much focused on what they say will be the services. as apple moves away from its sales of iphones, what it has to offer in terms of apple plus, apple arcade, the credit card it is announcing with goldman which will be of great interest. a lot of analysts say sales in china will be key. they expect them to be down. china, viewed as a wildcard for apple in that it remains the largest market. how apple is faring with the

trade concerns also will be of interest. for howl speak volumes tech is doing in terms of what apple has to say about the current events. increasel had a weekly but we continue to see bearish bets rising. mark: we have been -- su: we have been talking about disinterest, but now we see them reenter and position for lower prices. that is being noted. we ended the week higher, 1%, after what was a wild and volatile week, one reason -- some investors are stepping back. if you look at the big picture there is a view the combination and globalssues tensions particularly in the mideast arche but even though you have tensions that would normally cause prices to rise, they believe the supply issues and economic weakness we are starting to see will actually be the stronger force of pressure prices in the near term.

paul: su keenan, thank you. president trump's head of national intelligence is quitting. he will leave august 15 having clashed repeatedly with the president over his tenure. ros krasny has this developing story. what do you know and how significant is this to white house policy? joe: it -- asalind: he is not well-known as perhaps the seat -- the head of the cia or other intelligence agencies, but it is a key role. takes in intelligence for more than one dozen agencies and pushes it through to the white house. it is a role that really needs somebody who is very neutral. partisan, and that is what dan coats represented -- typically not artisan and that

is what dan coats presented. he was one of the few to take on the president, what you said about iran is wrong. john radcliffe, the texas representative, we don't know much about him but we know he was very harsh on special counsel robert mueller in last week's house hearing. he was one of the key inquisitors and that might have been something that got him onto trump's radar. he is seen as a partisan, a real departure from dan coats and he could face tough questions in his confirmation hearing about how partisan he is and how much he will answer to the president versus giving untarnished is that -- advice. shery: president trump targeting democrats this weekend. what is the latest? saw a string of tweets

starting early saturday morning, continuing through this afternoon aimed at repetitive comings of maryland, the head of the house -- the tea house committee. he is an african-american lawmaker. it seems like as we saw with trump and the squad a couple of weeks ago, that president trump is betting on his base. he is thinking these comments he makes on twitter and elsewhere that are seen as racist by democrats and not racist republicans, or at least a lot do not comment, and trump is betting his base will be revved up by them, and they will get out to vote when the time comes. it is energizing to his supporters. it is a risk because it could turn off a lot of moderate voters. moderate republicans or so-called independence.

but it seems like that is the tactic at the moment. the other thing it does, interesting coming into the democratic debate this week is it brings the oxygen out of the room. any time democrats are spending back and forth with trump, you are racist, you are racist, it is time they are not talking about their own policies and plans for the country. in that respect, the twitter attacks are really putting the category of crazy like a fox, deliberate and really meant to keep the focus off of democratic policies and on these kind of social wars. shery: thank you so much for that, joining us from d.c. a former treasury official tells us what he thinks the new round of talks will yield key deliverables. we speak to the peterson institute senior fellow next. this is bloomberg. ♪ ♪

shery: i am shery ahn in new york. i am paul allen. you are watching daybreak australia. back to the negotiating table, the u.s. and china restarting trade talks on tuesday. let's bring in a former deputy assistant secretary at the u.s. treasury department. he is a nonresident senior fellow at the peterson institute , joins us from taos, new mexico. thank you for joining us. i had of these talks we had positive signs of china agreeing or giving approval to buy an unpleasant -- unspecified amount of corn and other vegetables. how encouraging is that, or is it tokenism and should we not expect any real changes or breakthroughs? >> i think it is moderately encouraging because president xi

and president trump have strong reasons to have deliverables. the reason we only got 2.1% growth in the second quarter or even 3% is8% the trade war. it is as simple as that area it is hurting investment in the u.s. trump wants to keep the economy going going forward to the 2020 election. resident she of course does not -- president xi does not want china to sit below 6%. you have motivated presidents. what they could do is some deliverables. as you mentioned, agriculture would be a big thing for the u.s., or soybeans. and for china, what they really of productsde range that huawei could buy from silicon valley without much

obstruction. that seems like a possible deal towards the end of this coming week. that, it will take more negotiations. in terms of the negotiations, the chinese have changed their team to some regard. we have seen the chinese commerce minister will be sitting at the table, he has a reputation as being a hardliner. does it change the picture in terms of the hopes for a successful round? the key figures are president xi and president trump and the others are the negotiating people at the table but they are not the deciders. yes, china will put on a hard front and want all of the u.s. tariffs to be removed which is not going to happen, and the u.s. has a long list of demands

which you are familiar with on china. that is not going to happen either. both presidents have an interest in not further escalating the trade war. on the other hand they are not really ready to make a big deal itch amounts to peace, so leaves you with you could call it token or deliverables coming out. when it comes to decisions on trade, trump's voice is very strong. he said china may want to wait until the 2020 election because they could be wanting to negotiate with the democrats. does it make sense given the democrats have often been much more protectionist than republicans? sense.oes not make any you have got it right. if you listen to what leading democrats have said, none of them are free traders. the closest is vice president biden.

some of the very minor once are free traders, delaney, but none of the big four are true free traders and there is a lot of anti-china hostility in the democrat party. president xi knows all of this. he would expect a new democrat 2021 to offer a lot of concessions that trump is not willing to offer. shery: when it comes to china we have seen the foreign minister become very aggressive. juste talking about even last week the ministry announcing perhaps retaliation against u.s. firms participating sales to taiwan. could other geopolitical issues complicate matters for trade? gary: sure. we have a testy relationship now. it will continue testy for

exactly the kind of reasons you said, especially if the chinese whale on u.s. companies, make it difficult for apple, others to do business. that will not improve the atmosphere. harmony,ow the kind of if you can call it that, we saw it during the george w. bush administration or the obama administration, that is not going to be turned anytime soon. whether it gets a whole lot worse depends i think more on geopolitical and military actions man on trade actions. your i want to get thoughts on other talks that were overshadowed by those in shanghai, discussions with iran over the weekend. iran called the talks constructive with its european

partners. what hope of keeping this deal alive when the u.s. is not interested? gary: the europeans want to keep this alive. flexible.be very some might say they are bending over backwards. they don't want to see the deal die. they don't see any percentage in increasing hostility with iran morese iran will turn even to russia and china that it already has. it doesn't pay off for europe. europe doesn't have nearly -- you can say the fears about iran's military aspirations, that the u.s. does. sanctions from the u.s., they could get a whole lot stronger. what trump has done is strong,

there is a lot he hasn't done. the europeans will try to give some cordiality in the relationship. senior -- hoffpauir, gary hufbauer, thank you. want to get you to breaking news on the bloomberg, we have second-quarter results from dbs, did come in as a beat, income $1.6 billion singaporean. the estimate was $1.5 billion. we were expecting a good result, maybe the only singaporean tank with a profit this quarter. the interim dividend per share $.30. the net interest margin was inspected to be strong and proved to be, 1.9%, beating the estimate of 1.88%. nonperforming loans ratio declining to 1.5% from 1.6%.

recapping the headline number, the net income $1.6 billion singaporean, a beat for dbs in the second quarter. you can watch us live and see past interviews on interactive here you cantv go dive into any of the securities and functions we talk about and you can become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv go. this is bloomberg. ♪

shery: let's get a quick check of the business flash headlines. china's struggling bank has got government support. stake inbuying a 10% the bank, but investment firms say this -- taking smaller stakes. the dollar bond fell last week after a report regulators are seeking to resolve is liquidity

problems. the hong kong listed shares have been suspended since april. deutsche bank is investigating whether confidential customer data were compromised after it failed to deactivate the accounts of fired staff following the closure of its global equities business card 50 traders in london and new york were able to access back systems and emails for weeks. one person sent 450 messages after she was let go. new investor. they are considering buying a minority stake in the monster franchise owner, legendary entertainment. legendary was taken over in 2016 by a chinese alien air. he got the group for $3.5 billion. the investment is likely to value the company significantly lower than that. plenty more ahead in the next hour on daybreak asia. we will speak to the oxford economics and jeffries equity

discuss -- along to tech earnings in japan. this is bloomberg. ♪ is is bloomberg. ♪

paul: i'm paul allen in sydney. we are under an hour away from the australian market open. shery: good evening from bloombergs world headquarters in new york, i'm shery ahn. welcome to "daybreak: asia." paul: our top stories this monday, trade talks get back on track this week but there is little hope of a breakthrough in shanghai. neither side seems ready to compromise. teargas and arrest in hong kong's eight -- eighth weekend of protest. an official response. markets prepare for the