:: welcome to "daybreak australia." sophie: we're counting down to asia's major market opens. paul: here are the top stories we are covering at this hour. dark clouds gather over the global economy. a string of disappointed -- disappointing data flag this width that the world is headed for serious downturn.

the white house says there's no chance of meeting halfway with china and beijing slams protesters acting like terrorists in hong kong as satellite images seem to show chinese forces massed new the border. talk about wework and its race for an ultimate unicorn ipo. for now, let's get you started with a quick check of how markets closed. we saw the dow lose 800 points, the s&p 500 think almost 3%. sink almost 3%. every sector almost in the red. we had the nasdaq also losing 3%. it was all of this anxiety over the economy really sending those stocks down. we also had some api data showing that crude stockpiles were rising so that did not help

the price of oil. it's about haven demand. the 30-year yield also fell yield ands record finished just below that point. u.s. futures also under pressure, down .2%, as we continue to see this economic recession fears really gripped the market. sophie: with those recession , the nikkeig large posting a loss of nearly 3%. haven buying has the yen hovering your 6% and treasury's sparked by growth.

we have already seen that moving kiwi 10-year yields lower. we take a look at the region, it .s a dilemma we're looking at jba futures now, seeing them tick higher. guys, keep a close eye on what is going on in the markets this morning. thank you so much for that. to our top story, the bond market sounding the alarm on the global economy. the much washed -- much watched u.s. 10-year yield l below the two-year the first time since the crisis. investors fled for safety. the direction has been clear for . while

>> we have been flirting with an aversion for a while, so to see it finally break was something of a relief. made me -- maybe not for stock investors, but would actually pushed us was weak data overseas. we got very weak retail sales and production out of china, followed by a contraction in german gdp, which just reignited years about global growth and the health of the global economy, and that's why you saw such a strong bid into long data treasuries. paul: yield curve inversion sometimes but not always means recession. rush for thely to exit? >> i think it is telling that , there's a lot of different factors going into

bond markets right now, including fears of that global recession. it's hard to draw a conclusion about the probability of u.s. recession when what is pushing it over the edge are these global factors and this global slowdown. we finally saw this yield curve briefly invert, but i was talking to a few folks today that said it probably does not change anyone's economic thesis that it dips down to negative one basis point, but it will be

interesting to see what happens from here. we have retail sales out of the u.s. and so far the u.s. consumer has been the bright spot of the u.s. economy, so that will be important to watch. shery: thank you so much for that. when fear is driving the market, what do you do? let's ask the founder and cio of oka capital partners. great to have you with us. we talked about the yield curve 2/10.ion, the does this change your strategy, or do you need to see more severe and prolonged aversion to adjust your portfolio? >> our portfolio gets adjusted over time and kind of naturally as the stocks that we bought low are high enough and we think the growth potential the fed reached when you sell them and put that capital to work again. if anything, i think these

sudden drops really give you the ability to go shopping for stocks on sale. i will say this -- probably not today. whatever the market is selling off like this, it is best to get out of the way and let things occur and then maybe go shopping tomorrow. that is an interesting point. if you were to go shopping, where would you go? >> you go into the areas that have been affected most and the areas that you know best. those would be consumer discretionary and then technology. technology is something that never goes out of style, unlike clothing, right? seriously, companies are always looking for productivity, and it is generally technology that delivers that. my conductors, again, something that is very cyclically driven, but if you know the company's well and you know their product line and what they are going to be able to achieve, you go shopping for those companies and

pick them up when they are on sale with events like this. : you say don't go shopping today, maybe tomorrow, but how do you know it is not maybe next week or next month or next year? there is a risk with that strategy that you just end up catching a falling knife. how you know when the bottom has hit? >> sure, well, you have to do some work. you look at what your own risk tolerance is and if you can live with the price you are buying at. you don't know what tomorrow brings. i don't care about any kind of technical analysis. none of us truly know what tomorrow is going to bring in our lives or in the market. you just have to be able to live with the prices you have spent. that is pretty much it. : in terms of being

unconcerned about technical analysis, i want to bring up the chart here. two recessions have not occurred while the yield curve was inverted. it is not 100% reliable when it comes to predicting a recession. what do you look at for warning signs on a personal level? >> well, it's more, i guess, the tone of the conversation or the earnings calls of the companies that i listen to. if i hear a whole lot of know -- kind of, you they are having trouble selling their products, and that happens generally before a recession is acknowledged. you have to pay attention to that. i think that as well as walking ifund the world and seeing there is a lot of people that can be a really great indicator as well. especially where discretionary

spending is involved, like sporting events or concerts or vacation destinations. it sounds really kind of trite, but it really does work. i noticed in 2007 when i went on , it was really like traffic, and indeed, the recession had started. to your point, i was really surprised to see cisco's chuck robbins talk about this. we had known that cisco was pretty resilient to the latest trade tension. they had been able to absorb the cost, but it seems they are seeing a turning point as well and the chart on the bloomberg showing that although we had strong gdp numbers out of the u.s., we saw business investment seeing the first drop since 2016, so despite most of the far,umbers being good so

how long would it take for this to quickly turn you can it would mean more business is getting anxious. >> that's just it. there's herding behavior in , and we arenimals animals. i think businesses look at other businesses that are their competitors, and they noticed these slowdowns. one note of warning -- the second quarter is not generally a great quarter for technology. thirdlows a season where and fourth quarter are generally stronger than the second quarter. the commentary about what they are seeing in their pipeline now is probably a little bit more germane than the results for this quarter. many people and markets are hoping central banks will come to the rescue, something that some of them have already done. theident trump slamming

fed, saying it is clueless, again, tweeting that out, saying he is placing the blame for that crazy inverted yield curve on the central bank. the bond market seems to be agreeing that the central bank is behind the curve a bit. what can the fed realistically do? especially when we just saw surprisingly strong numbers on inflation recently? >> right, well, i think they are kind of down by their own chatter, which is that they are data-driven. if you go with that and they are supposed to assure that americans enjoy full employment eitherw inflation, once one of those things start getting out of control, by definition, the fed is behind the curve, right? how they can really shoot to that without being behind the curve. it's a littled, -- i would say the bond market has already pushed them lower,

right? the rates? they just have to follow along at this point, the fed does. does loveident trump to blame the fed. there's the often trotted out cliche that markets don't die of old age, they are killed by bankers. it seems the fed is trying to fight the fire. >> i think they are always trying to fight the fire. that is kind of their reason to be, right? i do think that the old saw is if you're pointing a finger at someone, it's one finger towards people and three back to you, right? i think the whole trade issue is really the driver of any kind of downturn in the markets and any kind of longer-term downturn in the economy. lesswo countries that had than wonderful news today were

germany and china, and both of those art export-led countries, and i think the trade war really is starting to impact them and we are a connected world. going to come all around the world. paul: cio and founder of bokeh capital partners. thank you for joining us. >> new images may show chinese forces amassed new the border with hong kong. forces amassed new the border with hong kong. photos from a u.s. satellite imaging company seem to show vehicles from the people's armed police parked in a sports stadium in shenzhen. meanwhile, hong kong airport is restricting public access after days of protests. only passengers with valid tickets and airport staff will be allowed to enter for the time being. china is sticking to plant trade talks in washington next month, indicating negotiations are on track, despite an abrupt escalation of terror threats.

but he described recent talks on the phone is very productive with president trump saying he thinks china "wants to do something dramatic, but sources in beijing are not optimistic and are unlikely to make major concessions. india's trade deficit continued to narrow in july as imports declined for a second straight month and signaled a deepening economic slowdown. the gap between exports and imports was just over $13 billion last month. $2 billion less than in june. the reserve bank has cut its growth forecast for the year and cut interest rates four times in a bid to spur growth. british-based banks are being warned to accelerate. the ecb says lenders are slow walking towards the split and have moved significantly fewer critical operations to the eu than was originally foreseen. cannotnce that banks

continue to rely on heavily servicing eu clients from within the u.k. 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. paul: thanks. come, tencent's results reflect challenges it is facing amid rising competition and a sputtering domestic economy. plus, a look at what might be achieved at land trade talks next month when expectations are already so low -- at planned trade talks next month. ♪

paul: the reprieve from president trump's tariff delay seems to of been short-lived. chinese officials said to be sticking to planned talks in washington next month.

let's cross to our senior trade editor, sarah mcgregor. the chinese are sticking to the appearance, but we have one official saying they do not expect to be making any concessions themselves before october 1. say the pile is set fairly low in terms of -- the bar is set fairly low in terms of expectations? >> this temporary reprieve, this the tariffse of until september 15, that will is motivated by the fact that the trump administration did not want to hit holiday shoppers or the businesses that imported goods from china. big takeaway is we heard from commerce secretary wilbur ross who said there was no quid pro quo. it was not that china promised to do something in return for the delay of tariffs. where we stand right now is that

it is hard to see a path forward. talks will continue. we just do not know where progress can be made right now. no wonder we saw such a poor reaction from markets today . despite that, president trump insisting we are winning against china, though china is not the problem. .he problem is with the fed industry groups are not happy. >> absolutely. and try toweet today never it attention away from china because we are seeing a lot of weak data coming out of europe. a lot of the weakness in the global economy right now is being attributed to the trade tensions.

course, trump probably wants to change the narrative a bit and blame the fed, saying they have not been cutting rates quicken up to his liking, which he has been saying for months now. we hear from american business groups. some are happy, some benefit from the tariffs being delayed until mid-december, but ultimately, they are saying the whiplash we are getting with trade policy uncertainty is a real killer for businesses. they need to be able to know what the environment is to plan ahead for investment, for hiring, and that is impossible right now. for joining us. let's get you across some breaking news out of australia now on the bloomberg terminal. for ae full-year results telik medications company. full-year net income coming in at $2.15 billion, down 40%. they did signal back in may there was going to be a write-down on some of its legacy assets, $100 million.

$200 million for restructuring costs. all of that weighing quite heavily on net profit. there were some questions over the final dividend could be sustained. the answer is no. the final dividend coming in at eight 10's per share. one will be an interesting to watch at the open. plenty more to come here on "daybreak australia." stay with us on bloomberg. ♪

paul: this is "bloomberg echnology global link." let's take a look at the top global tech stories. emily: cisco extended regular session losses in late trading

after a lackluster sales forecast showed the trade war and global slowdown are leading companies to hold off on computer network updates. sales in the fiscal first quarter will be flat to 2% compared to year ago. tencent's come back taking longer than expected. second-quarter revenue was not enough to impress analysts as ad revenue struggle to outpace forecast. many days trading below its ipo price. it fell to a record low on fears of a global slowdown, adding to lingering's appointment was last week's second-quarter results. those are the top global tech stories we're watching. shery: thank you. an ipo,as filed for giving potential investors the most detailed view yet of its finances and revealing breakneck growth on the back of massive

losses. let's take a closer look at the filing. what, if anything, do we know ? out the company's valuation >> nothing yet. what we learned from the filing was a lot of the pieces behind the underlying economics of the , the interrelations between the ceo and the company, but we did not get any real feel for the valuation. that is going to be parsed out over time. emily: talk to us a little bit about the massive losses here and its investors can get on board with it. this is a company that has a andue corporate structure, the vast majority of its buildings are less than two years old. the potential for profitability is going to determine what kind of valuations the company receives. is this a real estate company that secures long-term leases

and subleases it on a short-term basis, or is it a tech company that -- where profitability is less important, and it's a matter of going out, finding more spaces and growing revenues by 100% a year? right now, they are certainly on that revenue growth track, but it's unclear how they get to profitability. shery: really quickly, what do we know about why they are planning to ipo now when markets are so unstable? >> i think when it comes down to is the window may actually be shrinking. if they don't come out now, when might they be able to? obviously, with the weight uber and lift cap traded since their lyft-- the way uber and have traded since the deal, it does not scream time to go public, but it might not look any better down the road. paul: thanks very much for joining us. that is "bloomberg technology global link.

don't miss bloomberg technology at 7:00 a.m. in sydney, 5:00 a.m. in new york. up next on "daybreak australia," another night, another standoff between police and protesters in hong kong. this is bloomberg. ♪

paul: eight: 30 a.m. thursday morning here in sydney, the market open 90 minutes away. hold onto your face. futures pointing lower by more than 2%. looks like we are still up for a day of fairly heavy selling after we saw u.s. equities markets all end up in the red. shery: on the new york where it is 6:30 p.m. let's get to first word news. dark clouds are building over the world economy with more bad threat oflacking the a serious downturn. china reported its weakest factory growth since 2002.

the german economy shrank as exports slumped whilst euro area production fell the most in more than three years. on top of that, the u.s. and u.k. bond markets are sending their strongest recession warning's since the financial crisis. canadian prime minister justin trudeau is being dragged back into the biggest scandal of his time in office. just weeks before the nation's ruled hetchdog has entered a bid inappropriately by seeking to help an engineering company settle corruption charges out-of-court. trudeau's poll numbers sank on the initial accusation but have been recovering. india marks independence day later thursday with the disputed region of jammu and kashmir under lockdown. claimsia challenging life is returning to normal despite an indefinite curfew and total communication blackout. the report cites enormous anger and anguish in the region and

that protests are happening on a daily basis. iran is planning a new pipeline to export oil from the on the strait of hormuz. it is expected to be completed by march 2021 with the first cargo leaving later that month. oil exports from the gulf are potentially under threat amid threats from tehran to close the straight. the u.s. has a battle group in the arabian sea and says it will prevent any closure. 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. paul: just getting across breaking news on the terminal. .his time, a gold miner estimates.ne with

the dividend, six cents. full-year ebit also in line with estimates. evolution has seen the gold price rocket in recent times. evolution performing very well. oil prices have risen with numbers for the year coming out very much in line with estimates share.dend six cents per let's get to sophie now in hong kong for a check of the markets. inhie: nikkei contracts chicago sitting at a drop of nearly 3% overnight. u.s. stocks of the the worst day of the year on that recent inversion of the 2/10 curve. use futures indicate further losses this morning while gold is trading there a fresh high. watch for aussie bond yields

touch fresh lows new the session. we will offer more data that could drive sentiment from china poverty prices to japanese production output. heads up, guys, south korea and india are off-line thursday. if investors do not buy the yield curve inversion is a sign of economic trouble, consider this from bloomberg intelligence equity strategy -- three out of were indicators that matter to the market are now signaling trouble. bloomberg intelligence's chief equity strategist joins us now. let's get started with those for indicators. what are the? gina: the first is financial conditions, the u.s. financial conditions index has been a pretty good indicator when you exclude the equity market of the equity market outlook itself. unfortunately, the index has been deteriorating pretty substantially. it is at its lowest level since january, and the rise in august in stock prices was not

confirmed by the financial conditions index, so you had a pretty significant improvement in the index earlier this year. that is the first one we are really worried about. .e also worry about the isn frankly, global pmi's have been deteriorating all year. global pmi's in europe, certainly the worst of the worst. china not exactly positive, but in the u.s., we have seen this persistent deterioration in the pmi's. the only indicator we can sort of want to that we really think matters that is still somewhat supportive of stocks is the job market. even there, when we look at things like initial claims, initial claims have been trending sideways. they have not been continuing to improve, so that does not give us a lot of confidence you will see this unemployment rate continue to fall. unemploymentt rates continuing to fall. usually, the unemployment rate may be stable, may start to move a little higher.

paul: ok, we also have the new york fed recession indicator pointing above 30%. most of the time that happens, it means a recession is on the way. i guess that's the $64,000 question right now -- is there recession on the way and should the fed be doing more to avert it? gina: the fed uses the indicator of the day, the yield curve. they actually use the three-month versus 10-year spread, and that is inverted as of march, and it continues to stay and hover around inversion territory. the fact that that is inverted is leading the fed to can -- to conclude this a chance of recession in the coming year. today, we had inversion of the 10/2. certainly most equity analysts are trained to look at that as a primary indicator because historically, the 10-year, two-year has averted on average just 13 months before the equity market peaks.

this is the one that tends to lead most consistently to ultimately equity market peaks. you so much. bloomberg intelligence chief equity strategist. not helping the economy or the markets, these ongoing trade tensions between the u.s. and china. president trump tweeting right now saying good things were stated on the call with china the other day. they are eating the tariffs with the devaluation of their currency and pouring money into their system. the american consumer is fine .ith or without lost.ns of jobs are being thousands of companies are leaving. deal, lets to make a them work mainly with hong kong first. this coming us president trump delayed some of those tariffs from september 1 to the middle of december. paul: thanks. just to get you across more

breaking news out of australia, in case you had not noticed, a big earnings day here. producern oil and gas with first-half results. net income of $419 million. first-half revenue $2.26 billion. we had been expecting an impact from production turnarounds. spot lng prices have also been declining, so this weighing on the result. up 36%.dividend areesters in hong kong shifting their focus to a rally planned for sunday. the six-day sit in at the airport was effectively quashed on wednesday after an injunction barred protesters from operations unlawfully. pressure is still on the government to find a resolution to the ongoing standoff. our chief north asia correspondent was at the legislative council offices. what is the latest?

that courtey did get injunction, the airport authority, that pretty much ended the sit in, as you said. the focus does come back to central parts of hong kong, including the central government .nd power behind me basically, we will have another plan march on sunday the 18th from victoria park. that is planned right now. no word yet on if that actual route is going to be approved by the police, but again, the focus is on the economy as well because the airport is a lifeline for the economy. theyetail sales tourism, are all down. gdp grew. it is a 0.6% in the second quarter. with all this market turmoil, with wall street selling off as well, pressure has been on the hong kong stock market. we've lost $600 billion of stock market value since this unrest

started in early june. in fact, i was looking at a bloomberg calendar on the terminal. you could see since early june, the number of days there has been some form of unrest, and in fact, the past 16 days have seen some form of unrest, if it was at the airport or various districts with flash mob techniques. last night police again used tear gas to disperse protesters outside a police station. pretty much everybody, no matter which side of this chasm you fall on with your sentiment, everybody says a resolution needs to be found, but the problem is -- what is this solution? this is what charles lee, the ceo of the hong kong stock exchange, had to say when he was asked about it. .> this is not helpful as a financial center, trust and

confidence are the most important. clearly this city, this place has a lot of different issues for us to sort out. way to workind a this out. stephen: while the government of carrie lam keeps saying the economy is getting hurt, we talked to a number of young protesters out of the airport the last few days and they say, "we do have a stake in society," unlike what carrie lam said about them. they say they are the future capital of hong kong, the young people. shery: hong kong also making another appearance in president trump's tweets. minutes ago, he said let them work mainly with hong kong first, linking hong kong with ongoing trade tensions. he has said that the american consumer is fine with or without tariffsember date with would get implement it. some of them.

some were delayed until september. really interesting that the hong kong protest are now becoming .art of the trade rhetoric stephen: it is part of the trade rhetoric, but it's very clear the white house is also trying to separate what is happening in hong kong with the trade negotiations. you can clearly see it in donald trump's comments where he says, "let china working mainly to resolve the hong kong situation ," and not necessarily tie it to or ahead of any possible trade deal that might come down the pike. he also called it a tricky situation. it seems and ministration officials have been given -- administrative officials have been given marching orders to not strike the iron of beijing is negotiation times, but those

not necessarily in the direct inner circle of the administration have then much more critical, including marco rubio, the republican senator, , "beijing'sing stance on hong kong is a cautionary lesson for anyone thinking about a deal with them," being china. he was cosponsor of a bipartisan bill that could revoke special trade privileges that hong kong has with the united states. we also had senator lindsey graham, another republican. he said 30 years after tiananmen square, all americans stand with the peaceful protesters of hong kong. shery: thank you so much for that. correspondent joining us from the ground in hong kong. tought's come back from a 2018 is taking a bit longer than expected. it's near $13 billion second-quarter revenue was not enough to impress analysts, and ad revenue struggled to outpace forecasts.

breakout hit,19 what is it called? peacekeeper elite. not enough to offset weaker ad revenue. >> the focused on investors was really as you mentioned, that ad revenue miss, slowing very dramatically. part of that is the broader economic slowdown in china. no supplies given a string of weak economic data come from the country. executives noticed specific sectors where they are seeing slowdowns. they mentioned the financial auto real estate sectors, but in addition to that, they are fromng a lot of blowback competition, especially in getting eyeballs and getting those marketing eyeballs. we heard investors say they will be beefing up their products in many short videos, which they have a rival leading in, but

they will also be investing in high-quality longform content. the name of that game, peacekeeper elite, there's a few interesting clues and that because it used to be called something else. >> the issues with regulators are never ending in china. all the companies of the content media space in china have to deal with constant issues around censorship. you are right, peacemaker elite is the revamped, toned down, aiendlier version of pubg, much more violent battle royale game, and that is expected to help accelerate revenue. they have also been gaining a lot of revenue from the resilience of their existing game. now they are past the worst part in 2018 where they were suffering from that nine-month gaming freeze, but the problem is regulators are not approving those games fast enough, so they

are not out of the woods yet on the gaming side. paul: thanks very much for joining us there. just want to get you across some of the data in australia right now or some of the price movers indeed. checking in on aussie bonds, we have the australia 10-year yield at a fresh record low. the asx intraday was up, but futures pointing quite steeply lower. we will be off more than 2% if those are to be believed, and the aussie dollar continuing to test lows as well, currently 67.5 cents, but that 10-year one to really keep an eye on at a fresh record low. that will put extra pressure on the central bank. many expect to see further easing from the rba certainly some time this year. coming up next, we will take a look at potential opportunities in the credit markets.

this is bloomberg. ♪

: let's take a look at some of the many issues weighing on markets right now. named wall oftly worry. we see a number of bricks in their from brexit to the trade war, the inverted yield curve. we need to add another for argentina as well and all the been happening there. plaintiff for markets to digest. this is on a day when global markets are also worrying about falling yields and a slowing global economy. we now turn to our next guest, someone who i guarantee will offer a different perspective on the current mania and more reportedly, a long-term investment strategy. at the and cio management just wrapped up a is here auckland and

now. when you checkout that wall of inry, you say we are late the cycle. might be something of an understatement. which assets do you think are most poised for a correction? >> when you look at the wall of worry, there are a few other things to think about, one of which is that we have been in as benign an environment for many years as we have seen in the last 25. we have risk-free and credit spreads tighter than they have been in many years. the real question is -- if it's on the wall of worry or not, what is going to be unexpected by the market that triggers finally at appropriate pricing of risk? there are many assets that are mostly mispriced across the securities world from mortgages to leverage loans, cielo equity -- clo equity. the question is not if there is an issue but where it is going to start.

paul: maybe we can take some cues from the bond market. do you feel those are adequately priced at the moment? think it's a, i interesting finally the market is saying there is no more left to steal either from the future or from savers. people are talking about how suppressing rates at this point lighter fluid on an asset bubble fire. at some point, hopefully, we will see a return to present at appropriate pricing of risk. to seeas we continue trade tensions, we are hearing business leaders become more and more concerned. i was surprised to hear from the ceo of cisco, a company that has been pretty resilient despite the tariffs and trade tensions, talk about a shift he recently saw in the macroeconomic picture. take a listen or us. >> some slight early indications of macro shifts that we did not see in the prior quarter.

how concerning is the fact that we continue to see the downside trend in business investment falling for the first time since 2016? will this be felt in the markets as we continue to see earnings getting eroded pretty soon? >> i think it may. i think you are starting to see some cracks in the system. you are seeing certain companies in the high-yield and leverage loan markets who are reporting setting -- sudden down strokes and earnings. we are seeing certain small cracks out in the system, but it is still very early and i would stress that it does not require a material change in the macro environment for there to be a change in perception. the fed come to the rescue is mark's hope that it will? >> i don't know how much more of a risk it can provide -- as markets hope that it will? >> i don't know how much more

craven it can be responding to bureaucratic or democratic concerns. bullisho were kind of on macroeconomic policy, someone like a volcker 1.0 who comes in and actually says here is what is right for the long-term instead of what is right for the next few weeks or a few months. see some opportunities in hong kong was seems a little counterintuitive considering how .luid the situation is we could be at a potentially historic inflection point. we are drawn to volatility. we see opportunity in things like greece and italy in the banking system in australia and particularly in new zealand. within hong kong, what is interesting is as an example, given the relative explosion of high-yield corporate debt in mainland china and the connect program between beijing and shanghai and hong kong respectively, there are very few other ways that are relatively easy for mainland chinese capital. to access

we are an investor in various structured private convertibles in hong kong and throughout the world that allow us to kind of be the recipient of their great need for capital. shery: very quickly, you like even korea, right now celebrating liberation day, of course. they have their own issues with japan at the moment. made anwe recently investment in korea that will allow us to provide loans to a lot of middle-market public we listed borrowers and korea. we always found it to be a pretty stable market, very pro-economic growth, and we think there are real assets and businesses there with investing. paul: thanks for joining us. still more ahead on "daybreak australia." this is bloomberg. ♪

let's get a quick check of

the latest business flash headlines. berkshire hathaway is raising its bid on amazon and boosting its holding by 11% in the second quarter. the widget was valued at more than $1 billion at the end of june and shows how berkshire's view of tech companies has been shipping. even so, the stake is far smaller than its apple holding which totals him was billion dollars. berkshire has also raised its holdings in bank of america. shery: warren buffett is earning an investment boost of his own from fellow billionaire bill ackman. a new chunk of berkshire, bringing his stake to almost $700 million. berkshire investments have returned almost 50% this year according to its website. plunged ass quarterly numbers missed estimates. it's also cut its profit outlook for the year and warned that even that cut did not take into account the next round of president trump's tariffs on chinese products.

our interview with the brady is later at 11:30 in sydney, 9:30 in hong kong. that is it from "daybreak australia." all the action in "daybreak asia" next. this is bloomberg. ♪ from the couldn't be prouders

to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you pre-order a new samsung note. click, call or visit a store today.

♪ paul: good morning. i am paul allen in sydney. and from bloomberg headquarters in new york, i am shery ahn. anchor: welcome to "bloomberg: asia." this our top stories thursday, dark clouds over the global economy, the world possibly heading for a serious downturn. trade talks in washington,