paul: welcome to daybreak australia. i am paul allen. shery: i am shery ahn. sophie: i am sophie kamaruddin in hong kong. we are counting down to asia's major market open. paul: here are the top stories we are covering, talking trade, president trump said negotiations with china are making progress but he is not ready to make a deal. protest in hong kong amid warnings of a widening fallout. they talk of an economic typhoon. nothing to fear but fear itself,

bank of america has more net -- brian moynihan seems little -- see little chance of a recession. shery: in the u.s. it was another relief rally with the dow gaining one .2%. every sector in the s&p 500 in the green, chipmakers pacing the gains, nvidia' positive resultss helping not mention circulation european officials could come to the rescue if economic numbers deteriorate more in the continent. we saw more optimistic. -- optimism. the nasdaq was up. the future will be on jackson the fed chair has to say when he gives a speech on friday. in the meantime we have u.s. futures up .3%. let's see how we are setting up in asia. stocks this monday asian are ramping up for a positive start, kiwi shares adding .2

percent while kiwi 10 year yields are above 1% level amid prospects for stimulus to counter some of these growth fears. repairinghe pboc is borrowing costs. the rate refund. in hong kong, the warning of economic typhoon after we saw gdp contract more than expected. switching the board on the calendar we have july jobs data from hong kong which comes after the 11th straight weekend of protests in the city and we are getting a read on taiwan's economy and how it fared. also this morning july trade figures from japan show us how much the feud with south carolina weighed on exports. -- south korea weighed on exports. 106.42,trading around giving up earlier strength after trump labeled huawei a security

concern. goldman, when it comes to the jackson hole symposium, sticking to the long yen position against the dollar, the rupee and the euro. we will see what lawmakers have to say. paul: let's check in on first word news. >> we start with argentina, the country has been downgraded deeper into junk as markets brace for a potential default after the president was soundly beaten in a primary election. the long-term issue rating by three notches to triple see, putting argentina on par with zambia and the congo. congo added -- the a negative outlook. the last seven days have seen the peso fall to a record low. he the u.k., leaked government documents suggest the u.k. will face food, fuel and medicine

shortages after a no deal brexit along with job losses and disruption at courts. operation yellow hand warns of restricted supplies of food and interruptions in the supply chain. government ministers to the document was only setting out in the worst case scenario. >> it is the case as everyone exit,if we have a no deal there would be some bumps in the road. we want a deal but it is also the case the government is prepared more than it was in the past. it is also important for people to recognize what has been described in these documents is emphatically a worst-case scenario. are -- they, they teetering populist coalition looks more likely to collapse after one of the co leaders says it is no longer believable. the antiestablishment five-star movement released a statement saying their partners in the

league and leadership are not credible. the prime minister is set to address parliament on tuesday on the split that sets the stage for a new election. president trump is said to have suggested tough duties on french wine, this in retaliation for planned tax on multinational tech companies. he mentioned 100% tariffs on wine imports at a recent fundraiser, but it is not clear if he was being serious. the trade represented if office is holding a meeting later with tech representatives affected by france's move. 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. recent calls between u.s. and chinese trade negotiators have been positive, opening the door to further progress towards

a deal. hours ago president trump added to that message, saying we are doing very well with china and talking. let's get the latest from ros krasny in washington. we heard from president trump returning from his golf club in new jersey saying a trade deal with china could be harder if there is violence in hong kong. where do we stand now? ros: very mixed messages out of the administration today but net it was a positive message especially from larry kudlow and the president with some caveats. larry kudlow talked about the talks being positive, giving way to more teleconferences in the next week, possibly face-to-face talks. it was a pretty indicative timeline of progress. president trump actually talked about huawei technologies in his

rope line from bedminster, called it a national security threat which confounded directly some media reports this weekend that the u.s. was going to extend huawei's temporary operating license in the u.s. kind of a lot to unpack and not really quite clear what is going on. president trump talked about the relative strength of the u.s. and chinese economies and sort of gave the indication the u.s. , that chinar hand needs a trade deal more than the u.s. does. a lot to unpack and we could know more in the next few days. more, trumpis even making comments on europe as well, been a change in his , that china needs a trade deal more than the rhetoric? ros: more of a continuation than a change, some stuff about from hisd tariffs rally in new hampshire thursday night.

he has been saying for a long time he thinks many u.s. trading partners including the e.u. are taking advantage of the u.s., and he has had his eyes on auto tariffs for some time. a decision is not expected for a couple of months, but european cars, bmw's and other luxury brands could be in his sites. mentioned, a comment about french wines. trump is to irritated with france about potential -- is your jaded with france about taxes on u.s. technology companies. well-heeled donors and maybe french wines could be subject to 100% tariffs. i don't know that will happen, but watching this space. krasny, thankos you. thousands of protesters defied

heavy rain for one of the largest illustrations in hong kong since the unrest began in june. it was largely peaceful. pro-democracy leaders are going to reset the movement after the violent scenes in previous illustrations. -- demonstrations. are not given permission to march through central hong kong so what was the police and government response? yvonne: it was pretty relatively speaking quite calm even from protesters as well as the police over the weekend here. 6:00 a.m. local time, six hours ago the crowds here dispersed and their own will. and raisednot stop aggressive tactics to told them to go home. it was a remarkable showing, 1.7 million is what organizers put it of people that took to the

streets. 128,000rnment put it at that showed up. it is hard to gauge how many numbers were out here because what they did was rally at the start of victoria park which was passed with a sea of black, which people that filled six soccer pitches full and at one point they were not allowing protesters in. it was a running waterspout where they had to be forced onto these roads, closed down these roadways and people started marching despite the fact the government did not allow them to do so. it was peaceful. ,he mission they had this time they kept calling it a peaceful rationale and also no violence. it was a different scene from last week at the airport. we saw protesters beaten down, tying down men who they claimed were mainland police officers, so perhaps a reflection they have gone too far.

some of the groups apologizing for actions from the hardliners, but 1.7 million, if that is the number, it is a showing that perhaps public opinion has not changed since these 11 months or weeks of protests. already we are seeing that impact on the economy in hong kong. last week we saw second-quarter gdp contracting as this chart shows. unrest continues, could we be going for a technical recession? you kind of understand why they announced a fiscal stimulus package last week of $2.4 billion. the number is a further contraction or worse contraction than expected. the finance secretary also in a blog post warning of economic typhoon that could hit the city if the protests drag on.

he likened it to a level three danger. using the term -- this terminology, when there is a big weather event in terms of the scale, level eight is when the city shuts down. they are talking about at this point how big this could be, whether from the tourists that come in, which the numbers have dwindled, also the retail sector. the most visible victim has been cathay pacific, after allowing their staff or not stopping their staff from taking part in protests. they had to cave in and fired some pilots and staff over their involvement and ultimately led to the ceo to resign on friday. potentially we are seeing more businesses impacted but at least both sides breathing a sigh of relief we are seeing calm. , thank you. man we will ask where the trade war

goes from here with isaac stone fish from the asia society u.s. china relations. shery: and we get a market outlook for the white house as they say there is no recession insight. this is bloomberg. ♪

paul: i am paul allen in sydney. shery: i am shery ahn. looking ahead to the opening likely tostors are focus on another big week of earnings, economic data and trade headlines. we are already seeing signs of life with u.s. futures up .4%. su: we did get a two-day rally thursday, so can it continue? we have major events, the fed releasing minutes midweek, providing details on the first interest rate cut in a decade.

futures are positive, industrials performing strong on friday. you also have other events, the president or his lawyers will be challenging pressures by the federal government to release his bank records in court. we have got all of the central bankers going to jackson hole. look at the earnings parade. that will be a key area of focus. you noticed some of the other big names, baidu, home depot, which will underscore housing, hp, target, take a look at the other names. we have more retail whether it brands,t, nordstrom, l victoria's secret parent, and stuff affected by the issues in china and medtronic's, one of the medical technical companies that will give us an indication of how they are being hit by crosswinds.

paul: let's talk about commodities. su: that clearly is going to be interesting because it has been wacky for economy investors. not looking at the title of this chart, gtv is where you can find it. the supply curve struggling is the name of this. the blue is the opec crude production, it has not stabilized. let's go in to the last week of gyrations in in west texas intermediate, and you can see oil has been up and down. it we are close to $54 a barrel, down considerably from the april high. gold is getting a bit of a bump from the gyrations from the trade uncertainty and there are many analysts saying there is a twoe new bull cycle about begin in gold. paul: thank you. joining us now, antiquities

partner portfolio manager. thank you for joining us. i want to kick off with this chart on the bloomberg terminal that shows unsurprisingly if you are in stocks, the dividend yield outweighing the 10 year treasury, but is it getting riskier to be in stocks, or is, as brian moynihan is saying, nothing to fear but fear itself? if i had a nickel for every time there was a recession production -- what i want to focus on is the quality of earnings we are seeing at the moment, what kind of signals we are seeing from markets. there is definitely caution from a lot of corporate's. for ahas been a headwind lot of global cyclical businesses. those that are more domestically reuven, in asia for example whether it be alibaba, some of the baidu names, they reported

strong growth. domestic arts of the economies around the world -- the services pmi's have done well relative to the manufacturing. it is not to say one should not be cautious. it is to focus on the sustainability of earnings. the first yield remains. that is a theme that will not go anyway -- go away anytime soon. paul: it has been a mixed picture. you need to be selective. we are in a stock pickers zone. a lot of people we talked to like tech at the moment. sonny: that is right. you have had such great these platforms have done a great job over the years to build themselves into these mammoth businesses. we quite like facebook very we think that is putting aside the regulatory risk. what we have seen in china in

the development of platforms, social commerce, that trend could very well find its way into the u.s., and facebook is a strong platform that will be a part of that. we want to still stick with the strong, putting aside regulatory risk. we are finding structural growth at a much more attractive valuation in asia. some of the tech names in china whether it be alibaba, significantly cheaper than those opportunities then you find in the u.s. we still like a lot of those names in china. hold on for a second because we are getting earnings from bluescope steel. we are getting tons of earnings out of australia. bluescope reporting underlying profit for the full year that beat the highest analyst estimate, talking about profit at $966 million australian, and

billionme at $1.02 australian, all of them above estimates. beating estimates. let me go back to you. we continue to see as you said looking aside from pmi holding up what it is not necessarily the case with manufacturing. this chart showing u.s. manufacturer and pmi has been declining for the past four months and global pmi is in contraction territory. what is the risk of this manufacturing numbers getting transferred to the consumer side of things whether here in the u.s. or globally? sunny: it is a fair question. we have seen a lot of what is happening in the manufacturing sector, there has been a lot of one-off's that have added to this situation whether it is

trade, the weather, regulation. bestill feel there will weakness in the near term before we saw bottoming in q4. the more important thing you affected is will this the rest of the economy? that comes down to confidence, financial conditions. we are seeing moderately tighter financial conditions in the u.s. . the other part of the u.s., financial conditions will impact confidence, we will see what happens to credit markets and the stock market. moment, it depends on the federal reserve. the bond market is screaming for easier policy, so it will be really guided by the fed. if the fed doesn't want to give the signal that they want easier financial conditions, the risk we run is conditions tightening

into year-end and does impact the consumer and further impacts business confidence and takes a nasty turn. it is quite important how monetary policy will be guided into year-end. shery: how important will jackson hole this weekend be? it has typically been used as a platform to talk about some of the broader thinking that is happening in central banks globally or at the fed. i think what the markets are more gravitating towards is the hast end of the curve effectively led to tighter financial conditions and really what does the fed think about that? is it a one-off? will we see a robust outlook and we should look for their -- look further, or does the fed want to

maintain an easier stance to push the cycle as long as they can without creating overheating conditions in the labor market? overheating we are not seeing at the moment so it is more likely to be on interest rate policies settings rather than broader frameworks. paul: it will be closely watched. thank you for joining us. you can get a roundup of the stories you need to go in today's edition of daybreak. bloomberg subscribers, go to dayb on your terminal. it is available in the bloomberg anywhere app. you can customize settings so you only get news on industries and assets you care about. this is bloomberg. ♪ ♪

shery: let's get a quick check of the business flash headlines. japan is stepping up scrutiny on foreign investment in the chip sector, focusing on purchases of

shares with voting rights. new rules will be introduced that would force overseas investors in tech companies to undergo government review. results 10% or more on a voting rights basis. india's largest lender said credit growth will slow down. india says it of needs to over fault -- overhaul the practices. the reserve bank of india is trying to avoid a credit crunch by relaxing rules relating to consumers and boost the slowing economy. shery: volatile times call for volatile calls. j.p. morgan hosting a special conference called tuesday to help clients deal with recent markets. they will focus on how to manage the impact of high-frequency trading amid worries on wall street the current volatility could cause funds to dump billions of dollars worth of

stocks. the bank of america ceo said the biggest recession fear is the fear itself area hear more from his interview with bloomberg 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.

a.m. here in sydney. market open 90 minutes away, futures pointing higher .2% after a pretty wild week on the asx last week am of the index finishing down a little more than 2% but poised to open higher monday. i am paul allen. shery: i am shery in. let's get to first word news with su keenan. su: we start with tens of thousands of protesters who defied the rain in hong kong and marched are an 11th straight weekend. protest organizers claimed 1.7

million people took part, spreading beyond the path where police estimated 130,000 had initially gathered. the hong kong finance secretary is warning of an economic because of the city the continuing unrest. president trump is indicating trade talks with china remain on track ahead of schedule meetings in washington next month. he tweeted things are doing very well and the two sides continue to be in contact. his top economic adviser larry kudlow said recent photo op -- phone calls have been positive with more discussions planned for the coming days. in india the country is easing a lockdown in kashmir with a curfew partially lifted. communication was restored. landline and mobile speed has resumed and schools and government offices reopen monday.

the un's security council discussed the region for the first time since 1965 but failed to produce a united statement. gibraltar has rejected a u.s. request to hold an iranian oil tanker. the official -- the vessel has left. it was detained on suspicion of smuggling fuel to syria. iran disclosed -- denies but has not disclosed the intended destination. betweeneasing tensions iran and the west. launched successfully a new rocket lifting three satellites into orbit. the smart dragon one booster lifted off from the space center in northwest china saturday. the cargo included satellites for three beijing companies and designed for remote services, communications and internet.

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. paul: let's check in on what to watch. sophie kamaruddin in hong kong. are getting a health check on the economy frost really with a mixed report card from australia. we have in the building sector beach, thelivery a highest estimate while the property space has earnings in line but net profit falling 41% and the company saying there is due diligence being undertaken by prospective bidders for its engineering basis. -- business. bluescope beat invest -- beat estimates but softer earnings. the company announced it has approved the $700 million expansion of its northstar steel

mill in ohio where he provides steel for the automotive and construction sectors. let's get more on what we should be watching. the asian across assets editor andrea pavlov. investors are going to continue to watch the bond market. andreea: i don't think we need to get carried away. there will be support for equities. today we have had positive comments on trade. all of this has been a volatile month, likely to continue that way. yields at aing record low, 10 year u.s. treasury at 1.5% as we have got a chart to show, that we have become familiar in the last week. bond market will continue to be key to sentiment.

we don't get a lot of key u.s. data but have flash pmi from the euro area which it is critical, afterields did tumble german and chinese reports. they did take up a bit friday on reports of german stimulus but bonds are very key. we also have jerome powell at jackson hole, a speech aptly tied to challenges for monetary policy. it depends certainly the long end of the bond market, how it will react. at this stage, investors, long-term bonds suggest they are not convinced economic growth and inflation will pick up. shery: one currency that has escaped the carnage is the indonesian rupiah. what can we expect? that is right, it has

managed to withstand these headwinds and that is because the bank of indonesia has been committed to currency stability, has intervened to support that currency. in the last quarter it is only down .8%, making it the second best-performing among asian em currencies. the bank of indonesia last year aggressively raised interest insured 10 year bond yields became the highest in the developed market. around 7.4%. it will be very interesting to see what bank indonesia does with a meeting later this week. it is largely expected to keep rates steady which again will at a time werupiah are seeing easing from central banks around the world. shery: the central bank of indonesia has its hands tied behind its back. thank you for that area asia across assets editor.

you can find her charts on the gtv library on the bloomberg. bank of america boss brian moynihan is pointing -- painting an optimistic picture of the u.s. economy despite concerns a recession and the trade war. speaking to bloomberg he said the recent market turmoil was driven by issues outside the country and there is nothing to be scared of but fear itself. >> when we look into the economy, we see good things. it has been increasing during 2019. what do we see? based on consumer spending, when i talk about that at bank of america, through august 12, $1.9 trillion was spent by consumers on credit cards, checks written, bill payments, cash out of the atm, payments, one point 5.9 percentit is up

from august 12 versus year to date august 12 from 2018. 8% growth and almost 6% growth. that means consumers are spending a lot of money. they are doing it across the fourth whether it is experiences, going out to dinner, traveling. they are also getting a lift from gas prices coming down which provides a benefit and that means it is going somewhere else. what about increasing or decreasing use of credit cards, or more against bad debt? >> credit card charge at have been low and stayed that way. everyone says it has got to go back up and come off the bottom, but it has stayed fairly confident. we underwrite well as a company. with unemployment rate of 3.7% with new claims for unemployment below 200,000, which has not aisted for 50 years, not

percent but a nominal number, the average worker is working and getting a more and making their way through. if you think about that, it will translate into good credit performance on the consumer side. for mortgage you see a pickup in production. it is doubled from last year or month to date in july. july was up twice. august, even faster. it will provide a benefit to consumers to save money on mortgage payments and invest in their home or spend money doing something else. it sounds interesting. what happened to the bond market? you have the yield curve inverting on the twos and tens, any number of indicators that suggest there is something wrong, so what caused this? around the concerns of trade and manufacturing in the u.s. and outside.

there has not been a lot of great news lately, whether it is brexit, which doesn't seem to settle down, europe is slowing down, the europe central-bank saying we need to slow down, china slowing down, the trade war across the region's, companies restructuring supply which to avoid tariffs means they are spending money to move things and not to produce capabilities. so that debate and more importantly the debate about the debate. the old saying we have nothing to fear but fear itself, we have nothing to fear but the fear of recession. you are seeing a lot of people say if a trade war continues, if this doesn't get solved or that, you can see this getting to the consumer confidence in the u.s. which is a critical thing to maintain. the business confidence has come down but it is still strong.

businesses are fine but are worried about what is going on in the world. that was the bank of america ceo brian moynihan with david westin. we will be joined by the asian societies isaac fish to discuss what is next. this is bloomberg. ♪

paul: i am paul allen in sydney. shery: i am shery ahn, you are watching daybreak australia. president trump still upbeat on the progress of talks with china. isaac stone fish, great to have you with us. the president seems to be upbeat on the trade talks but perhaps worried about the economy. peter navarro out and about, trying to talk up the economy, how big of an achilles heel is the economy given the president is going towards a 2020 election? >> it is a huge issue.

what should be for the president's 2020 strategy the biggest piece of the trade war, making sure it does not do press growth. shery: we are seeing president trump talk about huawei. listen to what he had to say there. do trump: we don't want to business with huawei for national security reasons. we will see what happens. i am making a decision tomorrow. he met with xi jinping and offered relief for huawei, so what is the verdict on huawei when it comes to the trump administration? isaac: i don't think there is a verdict. we are hearing used the commerce department will allow certain u.s. companies a waiver to keep working with huawei. seems like trump wants to tie all of these issues happening at once with china into a nice,

neat little bundle he can negotiate at the same time, keeping investors and the chinese government on its toes. it is a confusing strategy, to be honest. the huawei one is interesting because it is either a security risk or it is not. you could also say the same about what has been going on in the markets. president trump saying he is now mark.g, exclamation we know the president uses what is happening with equities as a barometer of his success. isaac: it feels like the huawei situation is a lot of people in the national security community really do believe huawei is an important national security threat. for trump he is willing to use that line when is effective to him for his greater economic and trade war goals and otherwise he is willing to be more flexible

with huawei. it is very political. paul: on the subject of bargaining chips, are we seeing hong kong becoming one as well that would work listen to what the president had to say. mr. trump: it is hard if there is violence. but is a little beyond me because i think there would be tremendous political sentiment not to do something. i hope we can of think we will end up doing a very good deal. i think china by the way needs a deal much more than we do but i believe if this were not part of the deal, possibly something would have happened already a long time ago. deal so long do a as there is violence in hong kong but do you think that to some extent plays into the narrative china has been playing about four and injure -- foreign actors in hong kong? isaac: it was vague and some of the same ways like with

charlottesville, nice people on both sides, that kind of issue. he did not specify violence of beijing against hong kong. it was just violence vaguely. certainly if there is any sort of massacre or slaughter of unarmed protesters, it will be very difficult for any deal to get done because congress will prevent that from happening. at the same time, trump is seeming to give himself a lot of room so if things don't escalate to that level, hong kong doesn't distract from what beijing and trump are trying to put together. >> we were talking about president trump wanting to wrap all of these things in one package, but this hong kong issue is adding another layer to a very complicated conversation with china trade talks. end goal? is president trump trying to tackle china as the next competitor in this ongoing

global cold war, or is it more about supremacy when it comes to geopolitics in the region? what is the goal? is to i think it rebalance the trade deficit. that is a much smaller goal and much less grand than a lot of the things you said which are important issues to people in the national security committee that want to deal with but trump wants to have good economic numbers and have a deal he can claim as a victory and once the trade deficit to go down. shery: is the trump administration using hong kong and taiwan because we have seen china warning the trump administration on sales of fighter jets to taiwan. are we going to see these issues being used as bargaining chips? isaac: i we are. it points to divisions in the trump administration, pompeo and

bolton, they feel strongly about hong kong and taiwan as beacons of democracy and taiwan is an important u.s. ally that should be cultivated. not official ally but someone who has had a good relationship with individual members of congress and over the decades. for trump it is more transactional, big picture, trade deficit, trade imbalance, 2020 victory. different game. allies, youms of think if you done better than the japanese prime minister, shinzo abe, who seems to be reasonably optimistic over hoax of japan-u.s. deal? isaac: i am. trump despite the bluster is not trying to fight a multi-front trade war. certainly he is shooting himself in the foot. canada and mexico, things he

said, but seems china is a priority and prime minister abe has played to trump's ea that japan will not be in the firing line that the same way china is. also trump recognizes the issue of china and china trade is a more electrifying issue to his base and american voters in general and japan. it plays better. under 60 seconds, can you solve the japan-south korea dispute? what kind of circuit breaker is needed? isaac: no. this is an issue that has wrinkled since the end of world war ii and he is an issue about apologies and koreans feeling japanese are not contrite enough. the real issue is regardless of what the emperor says and the japanese prime minister says, there are conservative members who are adding fire to the flame

or whatever that expression is. even though it is in the best interest of the u.s. government for there to be a united front with south korea and japan against china and north korea, japanese and south korean voters feel strongly about this and it will rankle. shery: another example of geopolitics in history impacting economic relationships. thank you so much. the senior fellow at asian societies center on u.s.-china relations. if you missed any part of that, tv is your function, catch up on past interviews, watch us live and dive into the securities and functions we talk about and become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. this is bloomberg. ♪

paul: a quick check of the

latest business flash headlines. watching cathay pacific at the open in hong kong after the resignation of the ceo. the airline has been criticized i china over participation of some employees in the ongoing protests. the chinese state media said his departure may not be enough to fix the airline's reputation. they described it as the most appalling couto. surging,uescope is reporting figures that beat analyst estimates, coming in at 600 ft million dollars u.s. the board approved a $700 million expansion of its northstar project in ohio. this will give it an extra 850,000 metric tons of u.s. steelmaking capacity. we will hear more about that from the company ceo later on daybreak asia. shery: let's --

paul: let's stick with australia. our reporter joins us now. why is the outlook looking so poor? reporter: companies have gone into this earnings season with stocks already expensive. any earnings -- mr. earnings that have occurred, investors are punishing those companies quite a bit. we are seeing large slumps when companies have missed earnings. as of friday of the 43 companies in australia who reported full-year earnings, we see 64%. shery: what are we hearing from the come please about the state of the domestic economy? mixedare hearing a lot of messages. some retailers say conditions are great and people are spending money. others say retail both -- retail is challenging. it has been difficult to get a picture of what companies think,

but what we can say is there have been quite a few earnings places so far this season and that does not paint a good picture for the state of the economy. shery: stocks reporter jackie edwards, thank you. plenty more in the next hour. get the outlook on bonds and more. paul: let's get a quick check on the markets before we go. one market trading right now, new zealand, going for a little under an hour and it is currently higher by .5%. kiwi and aussie dollars taken a bit of a pause, both quite stable, 64 -- in terms of futures, we are pointing higher by .23% after a pretty wild week on the asx last week when we ended up about 2% weaker. look at asia futures.

nikkei futures are up .4%, talking about wild ride. the gtv 10-year yield fell to a three-year yield low but it is all about the bond market. kospi future is up. we are seeing lots of news from south korea including the ongoing spat with japan and the north korea missiles last week. sydney futures up .7% while kiwi theks are gaining after relief rally continued on wall street with a second recession -- second session of gains. there are gains of more than 1% in the past 13 sessions pray we will have plenty more on the next hour of daybreak asia. watch us. 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: good morning. i am paul allen nep renee and our way from the -- i am paul allen in sydney. shery: from bloomberg's level headquarters in new york, i am shery ahn. sophie: and i am sophie kamaruddin in hong kong. welcome to daybreak asia. this our top stories monday. talking trade president trump says negotiations with china are making progress, but he is still not ready to make a deal. protests continue in hong kong amid warnings of widening fallout