welcome to daybreak australia. i'm haidi stroud-watts. shery: i'm shery ahn. we are counting down to asia's major market open. ♪ haidi: here are the top stories we are covering in the next hour. the u.k. prepares for the polls again as prime minister boris johnson finally wins his bid for an early election. boeing goes on the defensive. the ceo faces tough questions in the senate. talk of another big --

fiat-chrysler is discussing merging lanes wit. shery: we are seeing u.s. futures unchanged at the moment, this after the regular session was pressured on reports that we might not see the china and the u.s. signed the first fate of a trade deal next month. we had tech weighing on the s&p 500. the nasdaq falling the most in about a week. we also have the disappointing results from alphabet on the nasdaq composite. we have higher financials. treasury secretary mnuchin talking about potentially being open to looser bank rules. not to mention, we also had health care higher as we had strong resorts from merck and pfizer. let's see how we are shaping up in asia. haidi: we are getting not much of the guide when it comes to the sentiment getting weighed down by expectations that may be

the many trade deal is not so imminent after all. pretty lackluster start we are setting up for in asia. you get futures trading in chicago looking flat at the moment. that's of the situation in soe eoul. we are looking at a climb up 3/10 of 1% in sydney. futures off by 3/10 of 1%. not much on the data docket either. cpi comehird-quarter expect it to show very little change in core inflation. not really moving the expectation much what they are will do next. new zealand is trading at the moment. moderate gains of one quarter of 1%. let's get you caught up to date with the rest of the headlines. ritika: thanks. the u.k. is preparing for a general election on december 12. prime minister boris johnson finally managed to win backing in parliament to tracker -- to vote in an snap

attempt to resolve the brexit crisis. it will be the third time the u.k. has gone to the polls to choose a new government since 2015. we will have a live report from london in a few moments. the psa group exploring a potential merger, according to people close to the move. we have been told there is one becomel, the ceo would ceo of the combined company. while the fiat chrysler chairman would become overall chairman. sources tell us psa board is due to meet wednesday afternoon to discuss the option. boeing ceo dennis muilenburg defended the company's ability to sign off aircraft, while admitting mistakes have been made. he testified before the senate commerce committee where he faced tough questioning over the steps that led to two deadly crashes involving 737 max 8 jets. he says the company would review reforms proposed by congress but declined to impose specific

measures. >> the airplane will return to service when it is safe. this is not going to be timeline driven. we are committed to answering every question regulators have an airplane will fly when everyone is convinced it is safe. that is the most important thing here. ritika: lebanon's prime minister has resigned after two weeks of antigovernment protests turned violent as demonstrators were attacked by supporters of the iranian backed has below party. in a televised address, he said he reached a dead-end and it was time for what he called a major shock to confront crisis. protesters in beirut are now calling for other top officials to step down. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: let's get more on the u.k. election, with boris

johnson finally winning parliamentary backing on the vote in his fourth attempt. thinking it will help the brexit crisis. annmarie is in london with the latest. after all of these attempts, what changed for the prime minister? annmarie: the biggest thing and the biggest breakthrough was jeremy corbyn, the opposition party, the labour party, saying he is willing to move forward with a general election. he was only willing to do that after we heard from the european union that we would have this extension on the brexit until january 31. corbyn did not want to go through a general election if there was a chance boris johnson could take the u.k. out of the european union without a no deal. in order to win this general vote, it goes to the house of lords, but likely it is going to be a done and said deal for this december 12 -- he even got the date he wanted. boris johnson is trying to

capitalize on the momentum he has right now. he's leading the polls about 10%, 15%. he wants to come back into this government with a majority, get has brexit deal through without any sort of amendment given the structure of the last parliament. but, this is risky for boris johnson. the polls have always never been right in the u.k. on top of that, when theresa may campaigned, she was up 18% in the pulse which weekly evaporated to 2%. we had a hung parliament. it is a risk for him, but right now he is leading in the polls. haidi: does this general election turned into basically a proxy second referendum on brexit? annmarie: that is exactly right. it is going to be the biggest question of whether or not you as a voter still to this day, given this is really capitalizing the entire political debate, want to remain in the european union or do you want to leave? the one thing both parties need to worry about are these

marginal parties that have been growing and getting a lot more voters and growing in the opinion polls. for the remain side, it is the liberal democrats and this could corbyn, taking a more anti-brexit stance. the liberal democrats have been gaining in the opinion polls and they are the ones who have a clear stance of opposition for brexit. for boris johnson, nigel farah's will provide a bit of a headache. he leads the brexit party. that brexit party came into effect in january. europeanring the parliamentary election, they won a lot of votes. they will campaign on boris johnson will take you out of the eu do our die but that did not happen. there are still a lot of risk for boris johnson and jimmy corbin. this is the first december election and the u.k. since 1923. shery: there was also talk

earlier today about amendments, lowering the voting age, not to mention giving a vote to european nationals in the u.k. have those issues been settled? annmarie: those issues were never made to the agenda. there was a lot of talk throughout the day that this is what labour and other parties wanted to back, as you said, allowing voters to vote under the age of 18, as well as eu nationals living in the u.k. but they never made it to the agenda. the biggest debate today in the house of commons was about days. to the holy election on monday, december 9 or this ever 12? a lot has to do with semantics and politics, although each side was weighing the pros and cons. in the end, boris johnson got his election and the day he wanted in on. haidi: annmarie hordern in london. the trumpet administration was the dictate how and where global car companies can make their cars and car parts in a bid to

secure duty-free treatment. let's get the latest from our congress editor. seeinge issue is we are trump tariffs start to weigh in on the u.s. is this likely to alleviate the pressure and is it likely to go through? joe: there are some critics that say this could raise the cost for cars in north america. the usmca, this new trade pact among canada, mexico and the u.s., has some fairly stringent rules on how much the car or car part must be made in north america in order to qualify for duty-free status. period of transition about five years that goes when this takes effect that allows for the government's to essentially dictate, or at least, influence what

manufacturers are advantaged under the rules as the manufacturers come about autos and auto parts, apply for approval of their plans. this creates a situation that is not unlike the command economy situation that manufacturers in other countries are under so that the administration could use this to influence manufacturing decisions and more political adventitious ways. shery: on the impeachment front as well in washington, we are headed to the house vote of inquiry. what is the latest on that front? joe: the house democrats have released the text of this resolution. this does not start the impeachment process per se, it merely sets out the rules for the road for the inquiry that they will take, undertake in the

next phase. this includes public hearings that will be run by the intelligence committee. with witnesses, deposition, transcripts made public. eventually, that committee as well as several others that have been conducting various investigations, including financial services committees, would make a recommendation to another committee, the judiciary committee which would alternately be in charge of drawing up any articles of impeachment and holding in -- impeachment hearings. presidentint, the could have a representative in the room and cross-examine witnesses and the like. andthis is a new phase republicans are already complaining that this really does not solve their objections to what had gone on before with closed-door hearings and testimony. haidi: we are hearing some pretty key providers of that

testimony or witnesses are having perhaps to be compelled to give their testimony now. joe: right. in some cases, they have submitted to what are called friendly subpoenas. the white house has directed officials not to cooperate, but several have upon getting a subpoena from the committee. most recently, it was a lieutenant colonel who worked in the national security council, who in a statement that was put out last night, said he was on the call between president trump and president zelensky of ukraine and that he was disturbed by the content of that call. there are several other current or former administration officials who have previously justified and will testify this coming week. but several have, including an aide to form a national security advisor john bolton, have asked

the court to rule whether or not he should comply with the committee subpoena or the orders from the white house not to cooperate. that's going to be moving through the courts fairly slowly and we can expect more of that as we move forward. haidi: thank you so much. bloomberg congress editor. still ahead, boeing ceo defending the company before congress. said they would review reform ideas. would he be able to prevent more oversight from the faa? shery: can one fed meeting give the markets some momentum? we will speak to david kudla. this is bloomberg. ♪

haidi: i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. u.s. consumer confidence unexpected leaf fell to a four-month low in october at a time when the economy is relying

on consumers to help prop up growth. let's get inside with mainstay kudla. ceo david always great having you with us. take a look at this chart because we are seeing that for the second time this differential between the current situation and expectations of consumers. it is the second largest differential since 2001. basically telling us that perhaps consumer sentiment is weakening more than expected. should we be concerned at this point in time that perhaps weakness on other parts of the u.s. economy now spreading to the consumer sector? david: we are not concerned yet. if we look at the number that came out this morning, it was off slightly from the september reading. a little bit below the estimate. for where we expected the number to come in but we are still at

readings, it is a four-month low, but we are at readings that indicate or signal to us about the consumer remains strong in the u.s. economy and the consumer being -- we have said it many times -- the all-important part of the u.s. economy going forward. consumption represents two thirds of the u.s. economy, so it is all important, but we still think we are getting rates that signals the consumer has not weakened significantly yet. shery: what does that mean for the fed not only this week, but come december? fedd: we know if we look at futures -- fed fund futures, we are looking at probability of 97% chance of the cut tomorrow. we all expect we will get a 25 basis point cut or quarter percent cut tomorrow. looking at a 50-50 chance of another one before march. it is all about the data, or

going forward after tomorrow, what we see. the jobs number on friday is almost a throw a month. it is going to be so skewed by the general motors strike and the cascading effects downstream to the suppliers as to what that will mean. we are always just a couple of economic data points away from the fed looking to cut again for another insurance cut if they have been referred to or midcycle adjustment. right now, we think the fed is at three cuts and done. that is what the belief is. they will pause for quite a while. it is really a matter of what we see going forward on the economic data that continues to come in. haidi: a fair chunk of the market thinks it will pause by december. i want to pull up this chart which goes to what shery was really talking about, all bets

are on for another cut this week but we are not sure when it comes to december, between october and december. what happens if we do get a mini-deal, phase one mini deal signed between the u.s. and china at apec? more of a buffer to sit on their hands for a bit? david: it is interesting what has happened in the whole trade war. what was considered uncertainty at one time has become more uncertainty. it is almost the trade war has become certainty for the market. it is expected this will go on for some time. att there isn't going to be least an overall resolution fo r months, maybe years. maybe it is this phase one deal or just a partial resolution, whether it is the small resolution you are talk about now or something more. i think the markets are

certainly not ignoring it. it still is going to deliver headline risk to the market. it is still impacting the u.s. economy. the chinese economy in a big way. peripheral economies. it is something that is now just being factored in and becoming something that we are pricing in going forward. haidi: what doesn't seem to be priced in is the reaction we are seeing from not so much treasuries, but asian bond markets. bond markets elsewhere seem to be in fluctuation at the moment. do you expect that selloff to continue if the fed is steady as she goes from here? david: i think -- it will depend. if we see -- certainly, if we were to see an improvement, unexpected improvement in the trade war, we would see a rally in equities in asia. we would see a benefit to equities in the u.s. and

see rateswe would rise. if we see worsening economic data in the u.s., and more recently, i think people are looking at the u.s. economy with glass half-full. we have reached new highs here. new all-time highs in terms of the u.s. market indexes. we have seen rates come up from their lows of a couple of months ago. in septemberptick and continued higher on the 10 year and 30 year. , investors i think and analysts are looking at the u.s. economy more glass half-full. maybe we move through this midcycle adjustment to move forward. maybe the fed will pause. i think that might be a little bit too optimistic of an outlook. we need to see more data come in and as far as the trade war,

could we be pleasantly surprised -- we are always one headline away. president who in the u.s. wants to get elected next year. that election now is only a year away. there is a lot of his constituents who have a lot riding on what happens in the trade war. that might change how this is approached in the coming months as well. haidi: thank you so much for joining us. optimist on any given day. mainstay capital management founder and ceo david kudla joining us. coming up, boeing ceo facing tough questions in congress. our next guest says his answers fell short. this is bloomberg. ♪

>> the airplane will return to

service when it is safe. this is not going to be timeline driven. we are committed to answering every question regulators have and the airplane will fly when everyone is convinced it is safe. that is the most important thing here. haidi: boeing ceo dennis muilenburg pledging his commitment to safety before the senate commerce a committee. columnist is here. we were not impressed with his performance. why? >> i felt there was a pretty significant knowledge gap that was exposed with his testimony. he was pressed multiple times about the instant messages that were revealed a few weeks ago that appear to indicate some internal concert over the flight software system. some comments from lawyers of one of the pilots involved indicated that concern was primarily over a simulator and not the software itself. but he admitted he never read the full details of the messages until it became news a few weeks

ago. the documents were released as part of an investigation before the second crash but he himself was not aware of the details. that is a huge problem for me. if you are a ceo of a company going through a crisis like this, and you already had one plane crash in nearly 200 people have died, we have to get your hands on every piece of relevant information and be intimately familiar with that. i think that is one of the key moments that's that out for me. the other was a lack of a willingness of his commit to changes in boeing's relationship with the faa. this was another point he was pushed on repeatedly. he talked about needing to get the balance right but was not willing to commit to specific changes. clearly, lawmakers were looking for more. haidi: what are we expecting tomorrow? brooke: tomorrow, dallas miller moaned -- dennis muilenburg will testify in front of the house. i expected to be more fiery. you typically see this before the house. they can be more aggressive in their questioning.

you have seen comments from one lawmaker raising concerns that a going manager expressed concern about production of the max, calling for that to be halted. i don't know what evidence there is to back that up. i expect we will hear a lot more about that tomorrow but it is certainly concerning. shery: quickly, how politically difficult will it be for the faa to get the all clear this year? brooke: i think the pressure certainly mounts on the faa and the more that you have these credibility gaps and knowledge gaps, that just raises concerns over whether this is a company that has the right policies in place to ensure that safety is put first. i think that raises concern that the timeline gets pushed out and you don't see this fourth quarter return which then raises the prospect of bigger charges and more loss of cash flow. shery: thank you so much for the latest on bowling. coming up next, the makings of

an auto powerhouse. fiat chrysler and psa group said to be talking about a merger. all the details ahead. this is bloomberg. ♪ here, it all starts with a simple...

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haidi: it is 9:30 a.m. in sydney. the market open is about 30 minutes away. futures looking like a mixed start in asia. not much of a guide from the u.s. with u.s. stocks hitting record highs before pulling back on a report we may not be getting that trade deal signed imminently after all. pretty hazy day in sydney. looking at the sydney harbor bridge. some brushfires in the distance. shery: it is 6:30 p.m. in new york. u are watching daybreak australia. take a look at the markets at the moment. we are seeing a bit of a mixed picture when it comes to the futures on the nikkei which has not changed. it was the slightly move

positive but the nikkei gaining for a seventh consecutive session. the nikkei and topics have been an overbought territory for quite some time and futures under a little bit of pressure. the korean yuan diddly the game of nation currencies yesterday because of trade optimism. take a look at the 10 year yield. we have more positive sentiment in the u.s., but at the same time, some pressure given the fact we are headed towards the trade deal. some negative reports that may not be signed next month, not to mention that we are headed for that expected rate cut by the federal reserve. 10 year yield at 184. japanese yen unchanged but this coming as we head towards the boj decision on thursday. crude and gold have been under pressure for the past two days, mostly because we are expecting the fed rate cut, not to mention

expectations of swelling crude stockpiles and that is putting pressure on wti. let's get the first word news. ritika: house democrats have released the text of the impeachment inquiry resolution ahead of a full taos vote on the impeachment inquiry which should come as soon as thursday. it is a signal the public will soon get a look at the witnesses and evidence assembled to build a case against the president. republicans have complained the inquiry is illegitimate. blackout set to continue in california as the wildfires worsen. the state government says more than 300 fires have been put up in the last 24 hours alone in around 130,000 people cannot return to their homes. companies across the state may cut power to as many as 2.5 million people to prevent power lines from sparking more fires. chief says huawei cannot be fully trusted,

signaling security hardlines in charge of angela merkel's government wanting to keep the giant out of the country's 5g ne twork. he said it was difficult to trust the company that he says has a high level of dependence on the communist party. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts. this is bloomberg. told: bloomberg is being fiat chrysler and psa group are looking at a merger. a deal could create a global powerhouse with a $47 billion market cap. let's go to keith norton who joins us from detroit. what do we know about this potential so far? keith: quite a blockbuster deal. you might recall fiat chrysler try to do a deal with renault earlier this year and that fell apart. this is being viewed as a better match.

jeepcomplementary to the suvs, ram pickup trucks. it is seen as a more complement three deal. right now, psa would have the upper hand. they would get the ceo slot with carlos tavarez. chairmann would remain from the fiat chrysler side. what do we know about this industry? because we continue to see this pressure on car sales. does this mean we could see more consolidation in the auto market? keith: there's a great deal of pressure on automakers right now to join together. even big ones. you saw volkswagen and ford join forces to do electric cars and self driving cars. those a very big multibillion dollar bets. smaller players like fiat chrysler and psa group need to completely align to manage

these high costs coming out them, otherwise, they won't be competitive in the future of the auto industry. haidi: we are also getting reports president trump is wanting full control over where cars get made and car parts get made under the new nafta agreement. what does that mean for automakers given there is a lot of criticism it will lead to higher costs? keith: that is not something automakers would relinquish very easily, the power to produce cars where they want to produce them. what president trump is trying to do is get more cars built in the u.s. where wages are higher and get cars away from places like china and mexico. it will be a real test to see how much government can intervene in private industry with something like that. the auto industry will resent that -- resist that mightily. shery: thank you so much. disruptive forces from populism to technology are sweeping the global economy and threatening the world's hottest economies,

including china. here with more on the bloomberg report on the drivers and disruptors is tom, chief economist for bloomberg economics. let's ask what is the motivation for this new index? thinking, as we head towards the new economy forum in beijing at the end of november is that the forces that drive economic competitiveness, the forces which make some economies successful and other economies less successful have changed. it's still important to have a skilled workforce, to have great infrastructure, to have an effective government, but in the new economy, it is also important to be robust to the challenges of automation, the digital economy, populism,

climate change and protectionism. what are index does and the added value we are trying to provide is provide a transparent ranking system to show how 114 economies are doing against those new disruptive forces. haidi: what was the most significant finding? tom: so, i think one of the main narratives on the global economy in the last 50 years and one which will be very familiar to you from your seat in asia is the story of catching up. first, japan. then, korea. low margins to rise up a global gdp rankings. one of the main findings from our report is that that ketchup protest is just going to get much harder. protectionism is creating

barriers to the free flow of trade. automation is eroding. the low cost advantage the developing economies have. populism is adding to the complication. the digital economy means the next round of globalization is more likely to be in services then it is in manufactured goods. all of these things means the ketchup story, which really defined the global economy in the last 50 years, is going to get a lot more complicated. shery: we know china has been heavily focused on growing their technology. it has been the national strategy. made in china 2025. how does the country fit in? tom: one of the most interesting results which are index throws up his china. if we look at the traditional drivers of growth, china really outperforms.

great infrastructure, skilled workforce, significant investment in innovation. china looks like one of the most competitive economies on those traditional growth drivers. when it comes to the disruptive forces which are going to shape the global economy in the next 10, 20, 30 years, china faces some new challenges. obvious one. is an on climate change, china's large agricultural workforce and its population mainly concentrated on the coast faces some challenges. big questions, chinese policymakers did an amazing job at addressing those growth drivers. that is how they got to where they are. what is going to happen in the next 20 years, will they be able to turn ejection is them, climate change, automation into an opportunity as well? haidi: i'm glad you mentioned climate change even outside the scope of china.

are you finding there is risk in terms of not fulfilling the full potential of growth coming from political paralysis, particularly when it comes to a lack of investment decisions being made by economies like a straily a? -- like australia? tom: there's a confluence of challenges. i think you put your finger on a couple of them. one is political paralysis and another is climate change. if you put those two things together, clearly you have the potential for some really serious problems. what is required in the face of china -- climate change is the government to make some painful, but critically important decisions for the long-term. if we look around the world, governments which are increasingly driven to respond to populist demands come increasingly focused on the short-term, increasingly focused on narrow, national interests rather than bigger global

questions, does not seem like those decisions are being taken. shery: thank you so much. you can get a round up of the stories need to know to get your day going in today's edition of daybreak. bloomberg subscribers, go to your terminals. it is also available on mobile on the bloomberg anywhere app. you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪

haidi: iron ore futures dropped as investors demand on rising stockpiles. awaiting policy signals from beijing. for more, let's bring in the operator,rgest bulk roger johnson from singapore. great to have you. how do you go about future proofing a business?

because you are reading reports china is going to see peak steel production over the next couple of years and it is going to plateau and decline. what does that mean in terms of implications of the future of your business? roger: hi. for us, we have done projections to 2030, 2040 and 2050. and, some of those projections take into account some of the more peak iron ore production. that is quite some years off. a lot of the terminals, most of the bulk terminals, the big ones are actually owner operated. as a direct impact on the port authority, really, i guess our impact is getting vessels in and out. it doesn't really impact the day-to-day operations. at the port authority, we look at new and alternative markets. so, diversification obviously is

an important thing for us. that includes different types of mineral ores that would like to ship. some of the things, for example, we are in discussion around production and new terminals to export salt. there is always something on the go. i don't suppose anything will ever be as big as iron ore, but we have got quite a number of products that we actually ship apart from iron ore and people are not well aware of that actually. haidi: it really is a once-in-a-lifetime sort of growth story, iron ore for australia. we spent a great deal of time talking about the global economic slowdown, how vulnerable australia is in terms of demand from what we dig out of the ground and the trade war is a huge part of that. have you seen the impact of that on your business, on the volumes you see day to day? roger: the big impact we had

earlier this year was cyclone veronica. forall, we had a port shut 92 hours, 130 hours. there is the wind down both into the lead up to that cyclone and then the wind back up again. the impacts, it cost us 1% of our total volume. going forward, we are seeing things lift once again. tocertainly -- we continue push volumes out. we are not seeing any slowdown at this point in time. so, we are certainly not planning on anything, doing anything less than what we have done in the last financial year. shery: does that mean you are expecting to set a record for iron ore exports? certainly are in a

position to do that. in our year-to-date figures, we are ahead of last year. it could look to be that way. however, you never know. we are prone to things like cyclones. in the prior year, industry had a couple of mishaps. trained irrelevance and those sorts of things -- train derailments and those sorts of things that impact. we are on track to beat last year's figures, yes. shery: we understand you run ports and not a shipping company, but i would like to get a sense from you how much of an impact will the new iron ore rules have on the shipping industry as we are going to see those lower sulfur limits in marine fuel starting next year? have a forumwe that we call ship safe, safe ports that we have been running for the last year and perth.

we have had executives attend the forum in september. more than 250 people attended. these are the sorts of issues we discussed. my take on those shipping companies that were in attendance is that they are well aware and reasonably well prepared to be able to undertake the necessary changes. it has been coming for a number of years and they are facing new ways to deal with those changes in different ways themselves. there is no one-size-fits-all, but there seems to be reasonably relaxed about it. shery: roger johnston, thank you for joining us. coming up next, we speak to this year's nobel prize in chemistry laureate. his work on the lithium-ion battery has revolutionized virtually all of the devices we use every day. this is bloomberg. ♪

haidi: nobel prize in chemistry typically focuses on compounds and concepts most of us would struggle to grasp but this year, the prize was awarded for a device that revolutionized how people use energy today and that is lithium-ion batteries. we are pleased to be joined by one of the three nobel laureates, stanley whittingham. great to have you. it must be nice to have won for your life's work on something that has day-to-day applications for everyday people. stanley: it was great. we got recognition for this not only for the lithium battery but the whole community. haidi: what are the implications for the win and how that will potentially positively impact what you can do with your work? increasing emphasis on energy, i'm how we can solve climate change. it can bring lithium batteries

to the forefront of not only scientists, politicians. i think the great thing is everyone knows what this is about. in germany, went on a plane, people knew what it was. haidi: the achievements and next milestones you are looking to make in this field? stanley: we are looking at increasing the energy by twice as much in the given weight of volume. cutting the price and seeing it get to all devices, so we will have cleaner cities, more electric vehicles and things like that. haidi: you have been working on this since the 1970's. what surprises you about this field has advanced and progressed? stanley: we got going in the 1970's together with some others. everything went great. oil prices went down. i think technology was a little bit early then. exxon sold the technology. the japanese developed it for

smartphones. the initial interest of exxon was in electric vehicles. we see lithium batteries going back into those. i think we will see more and more electric vehicles. they will certainly become cheaper, more readily available to everyone. the research we are doing will increase that energy density and make them safer at the same time. haidi: you mentioned climate change, greener cities, electric vehicles becoming more mainstream. what do you think is the barrier or the bottleneck? stanley: part of it is policy. gasoline is everywhere, low-cost. to get electric vehicles in, they have to be at a price where the consumer considers them a realistic option to a gasoline car. they have to go a reasonable distance. range,don't want a i am going to run out of electricity. haidi: you are on the board of a company that is seeking to

manufacture in australia. is that a real challenge or meaningful challenge to the dominance being exerted by china? stanley: i think it is possible, i think it is absolutely necessary. in the u.s., we are worried about china dominating. you got to have your own resources, build your own systems. so you basically control it. you don't want somebody else controlling it. haidi: why is it important to challenge the dominance of china? is it particularly important for australia? stanley: it is important for every country. if you want to be totally independent. if anything goes wrong in china, you are stuck and that is not acceptable. haidi: we have seen oil majors which is interesting, because you begin a lot of the work at exxon, paving the way for where we are now. do you think we are underestimating the disruption

of displacing oil in this world? stanley: i don't think we are underestimating it. i think the oil companies are realizing they will survive another 20, 30 years, they have to become energy companies, not oil companies. kodak at paper film, did not go digital. i think big oil is realistically addressing the challenges of the future. they were doing that in the 1970's, but then stopped and now it has come all the way around to get. haidi: i'm sure you get this question a lot, but cell phone battery's. is it more to do with the battery or more to do with the product's life? stanley: they don't last all that long? i think you wouldn't want to pay for a battery that lasts 10 years when the product you really want a new one every two or three years. i think you basically pay for what you need. i'm sure apple and samsung know roughly how long everybody keeps their phone and they designed

the battery for that. it is the lowest cost battery they can make that will last three to five years. haidi: you said you buy a battery every three to four years. what is the next big thing? stanley: i'm still busy. even at my age, i work full-time and i plan to keep doing that so long as my health holds up and my doctor tells me do not retire. i do not plan to retire. haidi: thank you for joining us. into prize winner and bing professor stanley whittingham joining us. shery: that's got it quick check of the latest business flash headlines. twole is weighing a sale of ailing chinese units after years of attempting to turn them around. a local confectionery brand is said to be under review, as well as a company known for its ready-made porridge. nestle is seeking more than $1 billion for its controlling stake.

haidi: saudi aramco will start trading on the saudi stock exchange december 11. the start of the ipo process set to be announced on sunday. aramco has delayed the deal earlier this month to secure cornerstone investors. the oil giant earned $68 billion in the first nine months of this year, cementing its vision is the world's most profitable company. shery: tesla surprised third-quarter profit came despite a drop of 34% in revenue the largest market. u.s. sales plummeted to just over $3 billion in the latest quarter, down to billion dollars from a year earlier. for sales fall in the u.s. shows the accent of tesla's shift to expand to markets overseas. plenty more still ahead in the next hour. carol gives us her market outlook with what is shaping up to be a crunch week for markets. this is bloomberg.

♪ haidi: that is it from daybreak australia. all the action on daybreak asia is next. this is bloomberg. ♪

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>> very good morning. i am haidi stroud-watts in sydney. we are one hour away from number eight open. -- from the market open. shery: i am shery ahn. welcome to "daybreak asia." our top stories this hour, the u.k. prepares to go to the polls again over brexit. prime minister boris johnson finally winds his bid for -- wins his bid for an early election.