paul: welcome to "daybreak australia." sophie: we are counting down to asia's major market opens. paul: here are the top stories we are covering the next hour. saysed cuts unexpected and more may be needed. jay powell says he may resume bond buying sooner than expected. saudi arabia says it has evidence iran was behind the oil

strike. president trump orders tough new --ctions, and facebook marketset's see how closed in the wednesday session here in the u.s. the s&p 500 plunged after the fed rate decision. it was a rate cut, but it was seen as a hawkish rate cut. we saw the s&p 500 losing ground, paring back some of the declines to finish unchanged. u.s. futures at the moment not doing much. biggesttocks were the losers in today's session as we had wti losing ground for a second session after the surge we saw monday following attacks on saudi arabia, but crude at the moment coming up higher, .2%. still below that $60 a barrel level. we had financials, though, gaining ground in today's session. yields had plunged in the early session today as we had the fed

coming back injecting cash into the market. those declines, though, were pared back a little bit toward the end of the session after that fed rate decision, and the 10-year yield finishing at that 1.8 level. let's see how things are finishing in asia. sophie: futures pointing to modest gains. session.see a steady we have growth in new zealand expected to have slowed in that period due to softer household spending. we are also waiting on aussie jobless figures to do this morning. we are expecting little progress when it comes to tightening the labor market, despite the rate cuts from the rba. speaking up flipping the board, following the fed we will have a busy day when it comes to central banks in asia. the boj on hold. we will see if they turn more

flexible when it comes to managing yields, given that the 10-year yield is knocking on -20 basis points once again. bank agenda,entral indonesia is expected perhaps to cut for a third straight meeting while taiwan is seen on hold this thursday. on first's check in word news now with ritika gupta. a: president trump says new sanctions against iran are coming in response to the drone attack on a major aramco plan. secretary of state mike pompeo flew to saudi arabia to coordinate the reaction to the strike. riyadh displayed what it claims is an iranian missile, saying the attack came "from the north." officials did not elaborate but added the strike was unquestionably launched by tehran. the legal hearing into boris johnson's suspension of the u.k. parliament initiated thursday with judges asking him to

explain what he would do if you were to rule against his move. the prime minister's lawyer said this was a political decision. critics say it was an abuse of power. sterling fell as eu commission president jean-claude juncker brexit is almost inevitable. the fallout from the ongoing protest in hong kong is widening. new research suggests visitor numbers continue to decline and hotel workers are paying the price. a survey by an industry association said more than three quarters of people working in hotels have been asked to take unpaid leave while almost half expect their pay to be cut. japan andspat between south korea is also hitting tourism between the two countries. japanw survey said in fell, dragging down overall income numbers for only the second time in six years. accountourists normally

thevisitors to japan, but number fell as the nations imposed tit-for-tat export controls. paul: thanks. the federal reserve cuts its key rate as expected by 25 basis points, emphasizing that the u.s. labor market is still strong while noting the damage being done by the trade war. >> trade development have been up and down and then up, i guess. in any case, they have been quite volatile. we will be watching that carefully. we will also be watching u.s. data quite carefully, and we will have to make an assessment as we go. the dollarhy did rally in stocks pair gains?

kathleen hays is here with the latest. kathleen: on the face of it, it does look like a harshest -- big hawkish cut and jay powell had to ride to the rescue during the press conference. we know the fed cut the key rate by 25 basis points as expected. as jay powell noted recently, the labor market is strong. the economy is growing at a moderate pace. rates are being cut as an insurance against developing risks -- weakness in global growth, trade policy. jump into the bloomberg library with me. you see this right in the middle. five officials said they were happy with the cut today. there are seven who see one more this year. there's nobody down here arguing for two more cuts right now, and there's five who were against it. if you go to next year, somebody

.s even looking for a rate hike maybe it is esther george from the kansas city fed. we don't know, but that got people going. in the press conference when jay powell started talking about risk of a talking about how the fed could react to things, people thought he sounded more dovish. i think he might be one of the guys along the bottom. here is what he said. >> if the economy does turn down, a more extensive sequence of rate cuts could be appropriate. we don't see that. it's not what we expect, but we would certainly follow that as it became appropriate. kathleen: when jay powell was asked about cutting rates, maybe you will run out of ammunition, he said that research shows it is better for a federal reserve or central bank to be preemptive when there's a concern or sign the economy might slow down or not to sit on your ammo and weight. i think people took that as another sign he is ready to do more depending how the data look

. few: we are also watching a other things rather closely. the fed taking one inspected step to reduce money market pressures that cost the u.s. repo rate to spike suggesting the biggest steps might be on the way. will the fed start buying bonds again? kathleen: it looks like it might. they are saying this will not hurt the economy or affect the course of monetary policy, interest rates, et cetera, but they did cut the rate on the interest on excess reserves by 30 basis points. that will free up more bank reserves to go into the system, and he said the fed does have as today they need they announced yet another repurchase agreement. $75 million slated for thursday and the u.s., and he said the fed may need to resume growth of the balance sheet "earlier than we thought." to an annuale door

balance sheet. shery: constance hunter joins us. i know you're still dissecting what is happening in the repo markets, but as kathleen was telling us, if the fed does go and try to expand its balance sheet, will that be taken by the markets as another qe, qe4? >> i think it is the context, right? they have not been doing this activity in the repo market for many years. if you go back to when this was regularly done, they used balance sheet for this purpose. jersey on earlier today, and i think what he said about this was spot on, that if you look at this -- these repo purchases as a percentage of gdp or the balance sheet, it is completely in line with where we were before they stopped doing

this sort of thing. but the economy has grown substantially since then, so of course it will be larger amounts. ae markets may perceive it as qe4, depending on how they do it, though, that may not be the correct perception. if it is a misperception, the fed will go about correcting that misperception. shery: right, saying this would be a manipulation of the balance sheet, more of a technical move. let's talk about the rate cut today, which is being a little overshadowed by everything else going on in the money markets. there was a rate cut. the markets took it as hawkish. >> i think the reason they took it as hawkish, if you look at the summary of economic projections and look at the gdp onecast, we went up percentage point on both sides. 2.2% to 2.1%2% to to 2.3%, so the forecast shifted higher.

there was not a corresponding decline in expectations for gdp, so what that signals to me is the fed thinks it has done enough. the fed thinks that what they are doing is going to work and that's why i think the market perceived it as hawkish. shery: especially given that we have had more positive economic housing data.g >> right. this is something the fed is jawboning. rates. pause to cutting the fact that we are already seeing the impact for mortgage rates is pretty significant, and i would expect that to continue into the remainder of this year and into 2020, and that will be positive for the fed. that alone is not enough to prevent us from dipping into a recession, to forestall some of the risks from overseas, but if you take that as a signal that we might start to see other in interest-rate areas,

such as for example, auto purchases, credit card balances, that sort of thing, then that could help keep the economy afloat, which is really that baseline projection. fed: do you get a since the is being dragged into easing against its wishes? were not for the trade war, we would not even be having a conversation about easing, would we? >> i suppose. i think it depends on if your view is that china is slowing solely due to the trade war or that china has some systemic problems causing its economy to slow and the trade war is merely the nail on the coffin. i'm of the view that china's economy, if you look at their growth of their loan balances, the growth rate of loans, those were declining. those are a leading indicator for manufacturing, and we have not seen much of a rebound in that. further, if we look at the level

of private debt in the chinese economy, that is a historic high that usually indicates a bubble is about to burst. i actually think we would have we had notg, even if proceeded with any more tariffs than those that were enacted last summer, i think we would still be seeing slow bull blowing economy, manufacturing slowdown. maybe it would not be as pronounced, but it is unclear. if the fed had continued to raise rates, this would have impacted dollar liquidity, impacted the renminbi. mapsot so sure that that out in my view of the world. paul: i wonder if there were indications on what is coming next? is going to the fed be data-dependent. jay powell said that in so many

words today. it will really depend on how the global economy unfolds and particularly how the u.s. economy unfolds. paul: thank you for joining us. in the next hour, we will discuss the latest fed moves with the former atlanta fed president. still ahead, facebook announces it will resume transcribing user audio clips on his video device, portal. -- shery: saudi arabia claims it has evidence that iran was behind the oil strike. president trump wants tougher sanctions in response. this is bloomberg. ♪

paul: you're watching "daybreak australia." let's quickly check in on wti. it started trading amid rising tensions in the gulf.

.2%,ntly at 5823, up about but overall, the trend is for crude to be coming down as saudi arabia makes more assurances on the supply. of course, the fallout on the attack on that aramco plant does continue to unfold. saudi arabia accuses iran of sponsoring last weekend's strike and president trump says the u.s. will be adding very significant sanctions on tehran in the next 48 hours. let's go to washington and congress editor. the u.s. already has a wide range of sanctions on iran. what is left for the administration to target? >> well, there are a few things that are left. the construction sector, companies on the tehran stock exchange, foundations that may be controlled by either regime figures or the iran revolutionary guards, but the fact of the matter is that iran's economy is heavily

dependent on oil. that is already under heavy sanctions by the u.s., so any additional measures are likely to be fairly marginal. u.s. on irann the are warning that taking the sanctions approach will only and that included one of the president's allies, lindsey graham, republican senator south carolina. trump action -- a view trump actually rebuked on twitter, saying this is not a sign of weakness and saying it is the next step is planning to take at this juncture. shery: we had heard from president trump on a tweet that the u.s. was locked and loaded. what do we know about potential military intervention here? is onesanctions step more step the u.s. can take to , and a military conflict trump today again suggested he is wary about going to war,

citing the experience in the u.s. and iraq. secretary of state michael pompeo's in saudi arabia today echoing their more nuanced line that iran was behind or sponsored the attacks without suggesting that they necessarily , andfrom iranian territory that the saudi's as well have been dialing back the temperature just a bit, calling for some additional investigation. pompeo said that he is in the region to help build a coalition to develop plans to further deter iran from additional aggression, so it looks like the take a still trying to few intermediate steps before there might be any sort of military confrontation. a newpresident trump has national security advisor. how is that likely to change the administration's approach to foreign policy? >> this is quite a turnabout

from the appointment of john bolton is national security advisor. trump's new advisor is a former has been litigator who working quietly behind the scenes on several issues. he has developed a trust with the president, and he is seen more as an arbitrator for the various factions of developing policy rather than as an advocate for a policy as bolton was, and is much less confrontational. our congress editor joining us there from d.c. plenty more coming on "daybreak australia." this is bloomberg. ♪

: this is "bloomberg technology global link." look at the top

global tech stories of the day. taylor? taylor: starting with cisco, they made an offer for software provider data dog in recent weeks with a bid that was significantly higher than the valuation the company is seeking in an ipo. we're told data dog rejected the bid, believing it could be worth more as a public company. it boosted its ipo pricing this week, valuing it at up to $7.5 billion at the top end of the range. has bought aortium majority stake in at&t's global headquarters in dallas. building is valued at around $250 million. it has been at&t's headquarters for more than 10 years and is the centerpiece of the telecom giant's downtown campus. it spreads across five blocks of the city. amazon's alexa showing off its not -- now able to

speak not only hindi but the unique blend of hindi and english called shinglish. it will also respond in an indian accent. the futureaunching right before a traditional indian shopping season. shery: facebook has confirmed it will resume collecting user audio clips. device its new in-home portal, but it is assuring us users will be able to opt out. process had stopped the amid news it had paid contractors to transcribe the audio recorded. asked why they are launching this now. why are you coming into my living room at a time when trust in the company and scrutiny over

privacy and data really is at an all-time high, trust at an all-time low? here is a listen to what he told me. >> people have never experienced anything like portal before. it has a camera and a microphone. we wanted to make sure everyone out really comfortable and in control of the experience. these areas don't just have control to turn off the camera and the microphone, they have integrated shutters that cover the camera so you can see that it is not seeing you. taylor: what about the microphones? have anicrophones active light when they are disabled. alternatively, you can decide to leave the microphone on if you want to use the assistant. the device sends a sort recording clip to service to get any answer back to you and if you have storage enabled, which is the default, we may review those voice recordings to improve quality over time, but

you can also disable those on the device itself or your facebook activity log. taylor: privacy data, all of that, has been a big focal point of facebook. is now the right time to be launching new products, when there is a camera, a microphone, when right now, there is so much scrutiny, and arguably the least amount of trust in they spoke? >> i think now is the best time to launch a feature like this. connecting with someone you care about is the essence of what this book does and that is what the devices are centered around. video calling the people you care most about. we have taken every precaution we can to make sure people feel comfortable with the devices in their homes and the control they have on those devices, but i think when they have the experience of connecting with someone they care about who does not live nearby, they are going to really experience something special for them. taylor: you heard it there. of sort of allad the facebook hardware.

you heard from him that they are launching this product even though they feel a heightened sense of scrutiny. they are certainly doing their best. i took a look at that portal, and there is that on and off switch right there to make sure you can turn that camera and microphone off when you want to. the interesting thing, of course, continues to be that it is opt out, not opt in. the good news is at least the .ompanies being open about it at least they are being honest about it, but it is very interesting that it still is an opt out function, not an opt in function. that is certainly what caught my eye. shery: people will really have to take a look at the product and try to opt out, right? that is another extra step you have to take, but that was an interesting conversation. thank you so much for that. that is "bloomberg technology global link." don't miss "bloomberg

technology." up next, can the thes latest cut help calm repo volatility? we will investigate. this is bloomberg. ♪

>> i'm disappointed by what the fed has come out with here. >> why? >> because the market is price for substantially more action. so the fact that the fed is sort of disappointing based on market expectations -- >> we were expecting more. >> i think the fed is not as accommodative as i would like it to be, simply because the forecast is running below 2% over the next three years, so i think there is more room for accommodation. >> i think the fed is way too preoccupied with inflationary expectations. >> the fed has changed the way it is operating at a fundamental

level and have moved toward this expectations-based way of looking at the economy rather than sticking to the same variables they use to look at, and i think it is very confusing. some big guests after the fed rate decision earlier today. let's dive back into the market reaction. the dollar rallied, bonds paired early gains and stocks went on a brief run right before ending unchanged. su keenan has all the market action. we just heard from these guests talking about not being as accommodative, disappointed. "we were expecting more." it seems the market just reflected that. su: definite fate stocks and and they came back almost unchanged. what it does not tell us is the story of analysts being

disappointed. no the yield on the 10-year, held below one point 8%, and nymex crude came back a little. we will probably get to that, that's alsofutures, very telling. let's go to some of the most active stocks. notice fedex, as we talked about yesterday, slashed its outlook. u.s. steel steel down ahead of its earnings. continue to fluctuate, very volatile. software stock, software industry technology stop, spiking about 30 times its normal volume. we go into the bloomberg. we are charting the world trade index which came down a bit as fedex really fell off in a big way. this chart tells us the cyclical stock price peaks 10 to proceed stock price peaks and cyclical value. let's take a look at after hours

and what we have going on is u.s. steel very much under pressure. notably, is the third company in its industry to miss earnings on a very big level, following nucor and other rivals lower. that will play out very much on thursday in the u.s. market. paul: we have seen the jitters in the repo market calming down a little bit. what is the story? it is notory as directly impacting the stock market as of yet. this repo spike which we saw happen on monday and again on tuesday, came back to normal levels somewhat in this latest session. it has not really phased the options market. we are not really seeing any protections or demand for puts on u.s. stocks. this is on the s&p 500. what we do know is the federal reserve has made it crystal

clear it does not want the u.s. money market rates to spike again. these repo rates, put simply, are a very brief borrowing opportunity. one strategist referred to it as a pawnshop for big banks and financial firms where they could get very short-term loans in the money markets. when it does spike, it can present a threat to spill over to the fed funds rate, which makes it problematic for the fed, so they are using a tool they have used in decades past, have not used it for a while, to get in on a daily basis and sort of manage it. they are getting it again in the thursday session to inject about 75 billion dollars in liquidity to calm this down. so far, it appears to be working. paul: thanks very much for that. nadine turner joins us now. thanks for joining us. i want to start with that repo she was talking about.

we have a chart that illustrates how the fed has managed to calm things down. what is the plan here? that is the third day of intervention. the band-aid approach seems to be working, but does some sort of longer-term solution need to be presented? >> i think the fed has two options. one, what it's doing now, the short-term, we are going to put some liquidity in the market. the second is more of a qa plan. i think that was alluded to today by powell, which got the market back up. probably when paul was talking, the market was down. qe, it started talking lifted up. when you look at statements or he is saying we will have to figure out in the next six weeks what happened, he did not really have a great answer to the questions about why it spikes, wyatt caught them offguard. i think they have two things they could do, but more important is why did it happen?

paul: in terms of the headline decision, we were hearing from some voices a little earlier. there seemed to be being more aggressive when was it comes to easing. outside of geopolitical risks and things happening outside the u.s., is more easing really appropriate? the fed seems fairly divided on that. >> you are right. , there on the one hand are certain parts of growth. this sentiment, but on the other hand, you have the trade war. you have political risks, spending lower, profits slowing and expectations going down. you noted fedex a second ago, but then there is also corning. we saw what happened with adobe. in some ways, he had to play the middle of the fairway on this one, which is what he did saying he's not going to give a plan or tell what will happen in the future. we will be data-dependent.

here's a 25 basis point cut, and we will see you next time. shery: they gdb chart on the bloomberg saying every time we see the stock lower, stocks peaked right before the recent cyclical high in global trade, which was sort of the same thing that happened before the past two sessions. how concerned should we be right now, and has the fed come in on time, or are they slightly behind the curve when it comes to these insurance cuts? the moste asking important question, and a subset of that is not just is there a recession, but will there just be a private recession with corporate earnings coming in the hurt quarter, and that may the firms regardless if it shows or not. globale global clove -- growth slowing. china had some of the worst data in 17 years with their

industrial production. euro zone -- i mean, look at germany. they are in a recession themselves. germany having a hard time around the world. fedex is a perfect example of that. people are slowing their investment and that is going to come out and earnings. byiper will have to get paid a lot of companies that have kept expectations of -- up. upry: the shanghai composite 20% year-to-date. is it reflecting the fundamentals of the chinese market? >> asian investors especially i think have been right on. when there is a hope for trade truth in the u.s., stock markets go up. even if growth was ok earlier in the year, now it is slowing. a lot of investors abroad understand maybe more the mechanics, the negotiations of what is going on versus domestic

investors like myself, so you often can see divergences in how investors are treating what is really no more than a calendar invite for october coming up .etween the two leaders paul: what are you liking at the moment? >> after a day like today, i think gold is still a great place to be. if you look at the volatility or implied volatility on certain options, for those of your viewers who can go into the options market, there were the drone before attack, and a lot of options, if it be materials or energy, that were priced low. volatility on for energy. that could be an area of interest. after today, too, i think while it's kind of in the middle of , it is a safers

place to be before going into earnings. if you have to go along, i would go for those companies that can -- just like today, microsoft after hours said they would increase their dividend. they have a lot of cash flow, not a lot of debt. i think you also saw for the markets, financials and utilities were up today. people were still playing defensive, but they were going out on a limb. i think you're better off being on the defensive side. shery: thank you very much for joining us today. let's not get to first word news with ritika gupta. ritika: the saudi finance minister is playing down the effect of the attack on aramco's oil facilities. he told bloomberg it would not change any of the government's spending plans, including on defense and would also not affect the planning timeline for the much awaited aramco ipo. >> we are committed to the ipo,

and the government will choose the right time. we are exploring secondary market options. >> the legal hearing into boris johnson's suspension at the u.k. apartment finishes thursday with judges again demanding he explained what he would do if they were to rule against his move. the prime minister's lawyer said the suspension was a political decision. critics say it was an abuse of power. sterling fell as the eu commission president said a no deal brexit is almost inevitable. a new report says asian businesses will increasingly lead the pack, boosting businesses while becoming less reliant on the rest of the world.

by 2040, it says asia may be home more than half the world's middle-class and account for more than 1/3 of global consumption. french billionaire art director is taking on more debt to help finance his $2.7 million acquisition of sotheby's. he is selling $550 million in eight-your bonds which cannot be bought back for three years. a loan of the same sizes also being set up. he controls a media group and wants to take sotheby's private after three decades as a public company. 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. i'm ritika gupta. this is bloomberg. paul: thanks. zealand's second-quarter gdp

data is due shortly. we will have those numbers coming up for you right after the break. ♪

paul: we've got some breaking news out of new zealand. gdp numbers for the second quarter coming in at .5%. annualized figure of 2.1%, again, better than the 2% which was forecast. analysts do typically tend to weigh their expectations for the downside, so those numbers slightly better than expected. the prime minister did say this week that new zealand is being buffeted by global headwinds. china is, of course, new zealand's are just trading

partner. prices, business confidence have all softened in new zealand recently, but commodity prices are holding up. we see that second-quarter gdp number a little bit better than expected. we have slightly better gdp data, but not that much more. you are seeing a slight reaction in the kiwi dollar, but even so, the kiwi dollar is not too far off from 63 after leaving g10 losses following the fed decision overnight. the currency is still under pressure, losing nearly 6% year to date. thanuld see more downside for the currency. a quick check on bonds with the kiwi 10-year yield continuing to i that 1.2% level as we get a broader view on the economy, not

looking too positive. consumer confidence falling to a seven-year low in the third quarter according to data this week and gdp forecasts through 2020 were lowered again this week. moved the fedhas toward more easing. paul: after the fed, we are awaiting a rate decision out of japan. justoj expected to spend hours after jerome powell delivered a 25 basis point cut. bloomberg's global markets editor joins us now. could there be anything in the boj decision that surprises markets? >> one of the interesting points really is around the yield curve control discussion. and often sleepy japanese bond market has actually been quite interesting in the last few months, and that will really be one of the key focuses, especially for bond investors as we go into the meeting and the

press conference. this is really what has been happening. you can see this chart on your gtb library and it means yields have essentially come out of that range that the bank of hitting -0.295%. according to some people familiar with how the boj may be thinking, there could be potential for widening the range, so that's going to be one of the key things people will be looking at, if they decide to start looking at the slight tweak to that yield curve control. that will be the center that people might get a surprise on. shery: what about deepening its negative rate? it seems jp morgan and morgan stanley are now flagging that possibility. adam: it is not out of the realm of possibility. it is something that has been discussed reasonably widely, and

of course, any surprise there you would have thought would add to a bit of pressure on the yen, the currency, and give it a bit of further weakness, but in addition to widening the range on the yield curve control, one of the things we will all be looking for in the press commentary on some of the super long bond yields as well. that has been a much talked about point of conversation of late. we have of course had this recent tick up in yields, primarily in the long end, but also comments on the global economy as we heard from the u.s. central bank overnight, slightly more hawkish tone in the sense of how the economy there but also the global landscape is playing out, so any comments that lean on that side of things are not really deteriorating anymore, he still has a pretty decent expectation global growth pick up in the second half of this year, so that will be key for the

commentary on the press conference which, of course, you have to wait for a couple of hours after the decision before we get that, but that will be the real talking point if we do get any commentary on that front. thank you very much. you can find adam's charts on the gtb global library. up next, how australia's pension funds are helping fuel the hunt for unicorns. we will see how and why just ahead. this is bloomberg. ♪

paul: australia's pension funds are helping fuel the hunt for unicorns. australia-based inter-capital firms raise a record amount of money in 2018, largely from the pensionfourth largest pot. foris capital flowing

venture capital funds? >> certainly the next evolution first rail you is pension funds in any case. they have been dabbling in private equity for quite a while. venture capital is certainly the next step on that risk spectrum, and it is easy to understand why. a fund in melbourne is raising up to $50 million, small chunk of change for the pension fund about 20%e, but annualized returns over a 10-year life as a fund. when you see treasuries yielding of negative%, a lot yielding bonds around the world, it certainly does make it an attractive investment for pension funds that have a aboute to hit targets of 3% to 3.5% above inflation. bets? how risky are these >> they are certainly risky.

there's no doubt about that. saw private market valuations -- sorry, the public market valuation for that is coming quite down from where private investors and venture capital firms were valuing it during its funding rounds earlier over the past decade or so. aboutvery risky, no doubt that. even when exiting, we saw hoover -- uber dropped about 18% when earlier this year. i start up that listed in july, they only jumped back about their ipo price after about five weeks. these things are certainly risky, no doubt about that, but when you get the right one, the payoff can be big. impact beenas the on australia's vc and start up sector? >> we are seeing a lot of changes happening in the vc

startup sector, especially when it comes to capital raising. still quite nascent in australia and pension funds are only dabbling in the sector, but in saying that, it is having ramifications throughout. vc funds here can go and tap institutional investors, provided they are large enough, they have a track record for p or they can go intact pension funds, which means they can diversify a lot of their funding sources away from high net worth individuals or family offices that they have had to rely on in the past. thank you so much for that. the milliken institute's asia summit kicks off today discussing the theme of asia at a crossroads. haslinda hohman is there for us. what should we expect today? guests, forts of sure. you talked about the theme asia at a crossroads. we know asia is leading local growth, albeit at a slower pace,

and that is happening against a backdrop of uncertainty. talking about rising geopolitical tensions including in the middle east, and of course, we have things like rapid technological changes and what that would mean for asians and jobs in this part of the world. that has provided all kinds of .ncertainty at theions around here summit will also be delving deeply into these issues. other issues to be discussed include food sustainability. also, redefining the asian dream. the american dream is now fading away. where does the asian dream get its inspiration? lots of conversations and guest coming right up. mike milliken himself will be joining us -- mike milken himself will be joining us to give his stake in the market.

finke giving his view on what the fed has done. se will also be speaking to f1' ceo. we have the haze engulfing singapore. what does that mean for drivers and of course, a very very important question -- who is likely to win? lots to discuss here at the milken asia summit. paul: thanks for joining us and we look forward to seeing you throughout the morning. that is almost it for "daybreak australia" this morning, though we do have trading under way australia, the index higher by about .4%. we did have those gdp numbers for the second quarter beat narrowly. futures around the rest of the region looking a bit more muted. we are up about .1% here in australia. the kiwi and aussie dollar's are pretty much unchanged. is it for "daybreak

australia." we will get all the action in "daybreak asia" next. this is bloomberg. ♪

under one hour away from market open in australia, japan and south korea. haidi: good evening -- shery: good evening from new york. sophie: welcome to daybreak asia. paul: our top stories, the fed cuts as expected and says more could be done if needed. jay powell warns he may resume bond buying sooner than expected. saudi arabia says there