>> good morning and welcome to daybreak australia. i am paul allen. shery: good evening. i am shery ahn. the top stories. stocks rebound after nearing oversold territory but september is shaping up as the worst month

this year for the u.s. benchmark , the oil rally in the treasury selloff taking a breather. paul: white house staff told to brace for the furloughs as a government shutdown looms with a last-minute deal unlikely. shery: plus evergrande is saying their chairman is suspected of crimes as it enters a new phase. u.s. futures coming online after stocks rebounding in the new york session and we are seeing those extensions with the gains of up to 1/10 of 1% in the s&p 500 so close to that oversold territory. the 14-day rsi around 35 and stocks getting a boost from the uaw report that it was set to dial back the pay hikes they were requesting from the carmakers. still, treasuries, the selloff today, the 10-year below 4.6% and data showing consumer spending rose at the weakest

pace in a year or less quarter and we had some comments from fed officials that were perceived as a little bit more dovish, so we have the dollar falling for the first time in seven sessions. take a look accrued, wti above $91 a barrel but that rally halting. the technicals at play in this market as well. we are close to that overbought territory in the 14-day relative strength index which could signal a correction. paul: the white house staff is getting guidance on furloughs in the latest sign that a deal to avert a u.s. government shutdown is out of reach before sunday's deadline. let's dig into this on the latest on the economy with our political news director and stuart paul. does the shutdown look inevitable? >> yes. it is getting there. i would not say inevitable.

they can pull something out in the next two days before the shutdown occurs on october 1, but unlikely. we have various bills moving, one the house leadership in the kevin mccarthy but how speaker is pushing, but it would have big cuts to government programs and it is almost certain to be dead on arrival in the democratic-controlled senate. the synod it is trying to pass a bipartisan bill but it would likely not move forward in the house and since both houses have just passed the same legislation , there is the toe chance at this point of coming up with something that will fund the government for any amount of time, even the so-called stopgap spending bill that would have short-term spending. government workers are bracing, including those as you noted at the white house with furlough notices going out today in the white house has to inform within a few days before a shutdown people who will be furloughed

and will not be able to check their email because they are not allowed to work during a shutdown. some are exempted and some are priority workers, so-called essential workers, so they will have to show up but will not be paid either. government workers are paid after the shutdown occurs but during this periods it can get difficul. the last shutdown was 35 days, the longest one on record. shery: the economic impact would depend on how long the shutdown is as jody mentioned, but is there a rule of thumb when it comes to government shutdowns every day how much the economy ends up losing? stuart: you can lose a few basis points of gdp growth for each week the shutdown continues. there are a few agencies operating in the background in part because of peculiarities that take place at the bea and

bls. if those furloughed workers are contacted by the bls as part of their survey, they could report they were not working during the survey week, therefore "unemployed," but those workers entitled to backpay would still show up on payrolls so nonfarm payrolls would not be hit. it creates a muddy economic data environment that the fed has to navigate to create on a terry policy. -- monetary policy. paul: we will have a situation where some government workers will not get paid and mortgage rates are climbing. how is the saving situation of the average u.s. citizen at the moment to absorb this? stuart: it is getting pretty rough, pretty rough. we have known for several months that the cumulative excess savings households have been relying on to fuel their spending habit, that has been

dwindling. we just found out today as part of an annual re-benchmarking process that over the past six years households have saved approximately $1 trillion less than was previously believed, so when fed officials have been crafting monetary policy and thinking that maybe we only need to see two great cuts as growth slows in 2024 because households need to continue drawing down savings, it turns out there are far less savings than previously believed. we published is looking at alternative data sets including those of the federal reserve. the income distribution of liquid savings and checking accounts, and end consumer savings accounts, and we found on an inflation-adjusted basis, that liquidity has been gone for the bottom half of the income distribution for several quarters at this point, so that savings landscape is just going

to be exacerbated by any sort of government shutdown, and the restarting of student loan repayments, which we have already seen accelerate august and september. shery: do all of the challenges stuart is mentioning the u.s. economy make a difference the politicians in washington? what could eventually lead to a breakthrough? jodi: yeah, well, sadly, i am not sure they are thinking about the things we were just mentioning that will affect individual people and the government workers who will not be able to go to work and get paychecks for this period. what will cause a breakthrough is some of the blame game, and mitch mcconnell, for instance, the republican leader in the senate who stood by kevin mccarthy during the debt ceiling debate, he now has broken away from him and is backing that bipartisan measure in the senate, saying republicans are going to get blamed for a shutdown, particularly a problem shutdown, and he does not want

to be part of that, so in the end once the blame game starts, particularly closer to campaign season, that is what may cause things to thaw in the deal to emerge, but it may take some time that a shutdown for that to happen. shery: will moody's, the last credit ratings agency to give the u.s. a top notch rating have to downgraded along with fitch and s&p? stuart: in the past we have seen this during the debt ceiling standoff with fitch and in 2011 with the s&p. it could be the case. i think that one of the things that is most important is that when fitch was deliberating whether or not to adjust the sovereign credit rating of the u.s., the thing that was cited the most is the key driver of this decision is just fundamental issues with governments, and any budget

standoff speaks to how important governance truly is, apart from the fiscal trajectory of the united states which is rocky on its own, but governance issues in the budget standoff between mccarthy and biden, mccarthy and some folks within his own party. it speaks to the importance of the observation by fitch. paul: all right. jodi schneider and stewart paul of bloomberg on the looming shutdown for the u.s. government. let's see how asian markets are shaping up in the asia-pacific. some markets close. australian futures positive following on from a good session from u.s. markets. the australian dollar putting on modest gains just aboard $.64 a news even trading at the moment off to a reasonably bright start. we are paying attention to the yen.

149.23. we heard from the former japanese finance minister, also known as mr. yen, indicating 155 is the level at which policymakers will really start to worry about that, and that is the point he thinks we might see some intervention. let's take a look at closed markets. no trade to date and south korea, china, taiwan, sri lanka, the start of the holiday. evergrande has confirmed that its billionaire founder is suspected of crimes, another blow for a real estate tycoon who was once among the richest people in asia. annabelle is tracking it in hong kong. confirmation from bloomberg earlier this week that he has been placed under police control. what is going on? annabelle: that's right.

it charts a remarkable fall from grace. what crimes he has committed, we don't know that yet,, nor do we understand the scale and the format of his detention, but we understand evergrande as confirmed in a statement the bloomberg scoop earlier this week, saying he is suspected of crimes and is in detention of some form. when this took place,, that is not clear. we understand from our sources but not confirmed in the statement but what we did here at bloomberg is that he was taken away by chinese police early this month. the type of surveillance he is under is the so-called residential surveillance. it is a type of police action in china that falls short of a formal detention. it is also not an arrest but does mean the individual in question, their movement is restrictive and's not supposed to last further than six months, but being under residential surveillance means you were not

necessarily be charged with a crime but we understand he is suspected of a crime, but when you stack it up with the challenges evergrande is facing, it tells you we are entering a new phase of fallout for the property developer. shery: last week they scrapped their meetings and are having to revisit their plans to restructure their offshore debt, so what is next for the company? annabelle: a lot of uncertainty, but we do know that shares will remain suspended from trading over from yesterday, that halt came into place but evergrande has said that the stocks will remain halted until further notice. we are waiting for any sort of updates, whether these creditor meetings can be rescheduled, and then also any updates on negotiations with that key group, because class c is a key obstacle to getting it over the

line. he has been subject or is subject to mandatory measures, so we can wait for any updates and if we get confirmation what does exactly look like, because we do know that they can take several forms. they can include summons, release on bail, residential surveillance, detention, arrests, according to procedure law but we can wait for any sort of updates on that but once considered an incredibly connected businessman, and china ambitions from electric vehicles, soccer, and now looking like what could be the most high-profile casualty from the crackdown on leverage in the company, but he is suspected of illegal crimes and subject to mandatory measures. we just don't know exactly what that means as of yet. paul: what does this mean for china's debt market more broadly? annabelle: yeah, well the question it raises is does it make chinese stocks further on

investable -- not investable? we are seeing earnings revisions looking better and perhaps some signs of bright spots emerging in the economy, but when you take a look at what we are seeing in the debt space, it points to further pain because essentially chinese junk heading for the third year of declines in growing concern of course that low rated debt in the sector is not investable to a lot in the market, so shortly another -- certainly another area we are watching. we have not seen the bottom for chinese assets. this indicating not yet. shery: the latest on evergrande in the broader chinese property markets, and other stories we are watching in the country, china has appointed a veteran official as the comet's party chief at the finance ministry, paving the way to become finance minister. his predecessor's the parts or was widely expected after he reached retirement age.

the appointment comes at a crucial time for china's fiscal system with strained finances squeezing'beijings push for growth. negotiations to avoid repaying $4 billion by wanda in a shopping mall business, a unit that completed its ipo this year. sources say wanda is offering compensation instead of immediate repayment to ease the risk of a liquidity crunch and we are told investors have been advised that ipo will probably happen next year. paul: still to come, shares of u.s. carmakers gain as the uaw dials back its push for a 40% pay rise. we will have the latest on the strikes coming up. first, gives wealth management says global equities remain under pressure until the bond market calm down. we will talk market strategy next. this is bloomberg. ♪

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>> it is too early for me to know. there are a wide range of possible outcomes. you could argue for a resurgent based on the numbers. you could argue for a downturn. and you could argue for a return to the pre-covid economy. all of those are inside. shery: that is thomas barkan

saying it is too early to tell on rate hikes. our next guest says global equities will remain under pressure until the bond markets calm, aaron gibbs at gives wealth management. always great to have you. we continue to see the gyrations in global bond markets in these charts showing how the spreads continue to widen and we have that fiscal deficit projection been confirmed and really we are seeing european yields higher as well. the pressure on global equities because of this is immense. >> enormous. i know we love to talk stocks because it is companies we can relate to more easily than more theoretical bonds, but this has a huge impact and i would like to describe it as, why would i risk the stock going up and down and all over the place when i can get a guaranteed 5% in a two-year bond, that safety, risk

off mentality where investors for decades really just wanted to be 100% equities and did not want to talk about bond allocation until well into retirement, looking at as real value, real options, and with the advent of bond etf's, even someone who does not want to invest directly into a bond, there are options and easy ways to trade it. we talked about equity risk premiums, how attractive equities are compared to risk-free rate like a bond, and when these bond yields are becoming so high, it really is much more difficult to justify being in some of these riskier equities. shery: if you have to justify it, where would you stay in the equity space? erin: even though we are oversold and there is negative sentiment across the world globally, i am still overweight

u.s. large-caps, particular with the tilt and value, because anything with growth and more forward in the future, those profits are less valuable with these higher interest rates, and so, and again, also, seasonality, september is a bad month, and we are a little oversold,, i don't think it is time for that shift to take on riskier assets or jump into european stocks just yet, even though those stocks from a valuation standpoint look more attractive. they just have a few more headwinds and i don't think it is quite time for their outperformance just yet. paul: yeah, you mention september being a bad month. we have a chart that illustrates just how bad, the s&p heading for one of its worst months, and heading into the final trading day of the quarter, how

challenging have you found this quarter and what are your expectations for the final quarter of the year? erin: well, i am certainly hopeful it will be better. this has been a challenging month. um, this is seasonality but it has also been and i am assuming that basically treasury rates will stabilize. we have seen a massive jump in the past week two and weeks and so assuming that we do get a little more competence around the fed, may be less hawkish statements, that will help the equity markets stabilize and therefore hopefully not see some of these negative returns, even if they were just you know slightly flat, would be more beneficial. um, but i think it will take, um, given that we've had a big jump in treasury yields on crossing over get no 4.5% on the 10-year, it would take a couple of weeks to pan out so the beginning of october could

continue to see volatility and negatives days before we really see investors reset their minds about how much i am willing to pay for stocks, what type of premiums in valuations i'm willing to pay before moving back into the trading market. paul: in terms of the fed, we heard from thomas barkin saying it is too early to say they need to tighten again, and in terms of potentially one more hike, does it need to happen, or is it just saying it might happen enough? annabelle: i think saying it might happen is enough. erin: i think any of these hawkish announcements are enough to shake investors and clearly we are in a risk all sentiment and we know that buyers are on the sidelines. i think we need to see some sort of positive outcomes. we have seen a lot of negative

economic news recently between higher oil prices, inflation, housing starts, those types of things, so it really could be generated simply by lower oil prices where the consumer feel stronger and that could help change sentiment. i think that is another big important part of it as well. we are getting hit with higher yields and higher oil prices. shery: i know that you like energy. that is still a safe haven play with and equities. thank you so much. we have more to come on daybreak australia. this is bloomberg. ♪

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paul: nike shares gaining and light trading after better-than-expected earnings

and a drop in its inventory stockpile. it's first quarter revenue was just short of analyst estimates. it beat expectations with profit margin and inventory fell 10%, of sign of progress in moving out older merchandise for more profitable newer items. character ai, a start up offering chatbots that can converse with anyone or anything in early talks to raise hundreds of millions of dollars in new funding and could value the company at more than $5 billion, sources tell bloomberg character ai has received interest from investors and deal talks are early and could still fall apart. shery: take a look at u.s. futures at the moment, extending gains we saw in the new york session because we had the s&p 500 nearing oversold territory this week, then it rebounded from those levels with the

14-date rsi around 35 and got a boost from the united auto workers union said to be dialing back the pay hikes they were seeking and also the treasury selloff cooling off a little bit. coming up next, northern trust is the timing is less than ideal for the fed to try guiding the economy to a soft landing. we have more. this is bloomberg. ♪ the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network.

paul: thomas barkin says it's too soon to know if another rate increase will be needed in an exclusive interview with bloomberg and added headwinds from a potential government shutdown could create more uncertainty for the economy. >> growth seems solid. we are only two days away from the fourth quarter and i still

hear a pretty solid business climate, but i am anticipating the next quarter to be solid, not robust, and that is how i see it. >> are you still in the camp that thinks that there is nobody in the summary of economic projections who said that there was going to be a contraction and you do not see that coming for the economy? >> i don't think the kind of growth we saw in the second and third quarter is likely to continue. i think it will come off of that. how far, we will see. we have the luxury of time to figure out what does happen. we also have these uncertainties. government shutdown. automobile strike. there are a lot of things that could impact the economy, so i think i would learn a lot in the next several weeks, several months. >> that raises the question that the fed left in the dot plot one more great move this year. is that a placeholder in case of emergency, or do you really

think we need another great move to bring down inflation? >> it is too early for me to know. there are a wide range of possible outcomes. you could argue for a resurgence based on the numbers and a downturn as you been talking about and a return to the pre-covid economy. i think all of those are insight, and you have different medium-term rate paths against those outcomes so that is why i like the chance to take some time to see what we can see, particular core demand and labor demand, and then what we see on inflation, and different scenarios for those things end up with different scenarios for rates. >> i assume this means -- there are only two lines for 2003 with one more move or stay there i presume and that one more move could be necessary? >> i am in the camp of seeing how the economy rolls out and we will respond appropriate.

>> what is your baseline forecast for the rest of the year leaving these other possibilities out? you can't know what will happen with the automotive strike, etc. let me expanded into the third quarter, where do you see the economy going? >> demand will soften. the tightening and the lag effective rate increases has to have some impact, so demand softening. i don't think that will have the kind of trauma on the labor market it may have historically had because people are still reluctant to fire workers they spent a year to a year and a half trying to acquire, so in addition, businesses have been investing -- it has been 16, 17 months with a leading indicators predicted recession and it hasn't happened yet, but businesses 2023 planning and 2020 for planning or being cautious of that means there is not as big of a cliff as you

might expect. paul: that was the richmond fed president, parking -- thomas barkin speaking to mike mckee. that's get more on the looming u.s. government shutdown, no sign of a last-minute spending deal in washington. joining us now to discuss more is the chief economist at northern trust. we did hear from thomas barkin. is this shutdown a potential spanner in the works for the fed? what implications for consumption, growth, and possibly deflation as well carl: ? good morning. it is not the finest hour in washington, d.c.. unfortunately government shutdowns are in with which we have had quite expense of the last few decades. fortunately knowing what to expect helps markets and others prepare for what might be ahead, but i think it is fair to say that this year's variation could

produce some prizes given the level of acrimony we are seeing every day coming out of the congress, within caucuses and across caucuses. the consensus seems to be there will be a shutdown. there is so much work to do between now and saturday night, and it is inconceivable we will have a full budget. typically what happens in the u.s. is that there is a continuing resolution passed that would allow department to continue for a while at the run rate of spending. that is the most likely outcome but because there are folks who feel seriously about issues who are tacking on things to the continuing resolution making it more difficult to pass. a shortcut down -- it done would not have a big impact in projects that were delayed would be completed. with regards to the fed, economists like me love our economic statistics. if we have a shutdown of any length, the agencies that put

together data on inflation and a planet will have to shut down. we have had experiences in the pass at the delay of numbers has led the federal reserve to delay making a decision what they want to do with interest rates. paul: you mentioned this becoming part of the political furniture in the united states. it is not perhaps as serious as adept limit debate, though moody's among others issuing warnings about this. what is the impact on the credit rating of the u.s.? carl: fundamentally, the united states has every ability to pay the interest on our debts in the depths themselves. what troubles the ratings agencies and frankly those of us observing from a distance is just the dysfunction and lack of ability to come together even on the most basic things that would enable us to set a course for budget discipline. that was noted when we got the downgrade in the wake of the

debt ceiling debacle and that may be a factor as ratings agencies are watching the events in washington today, but i would say that that is probably one of the reasons congress is unlikely to let this go on for too much longer. we are a favored nation when it comes to appetite for our debt and currency and it would be quite the footfall to fritter that away of our own device. shery: that appetite for u.s. debt, how much longer will it be their win at the same time we are talking about huge u.s. budget deficits that need to be funded in the future and that traditional buyers perhaps not as willing anymore? carl: that is a great point. the federal reserve had been the marginal buyer of treasuries in the months and years immediately following the pandemic. they are beginning to reduce their balance sheets bite sizable amounts. we have been fortunate that point demand for treasuries has

been sustained, china off, japan up, but it washes out in the high level of our interest rates are clearly an attraction but over the longer-term i don't know that we should take for granted that foreign investors will always feel absolutely comfortable buying our debt, and even though if you grade on the curve, the united states still looks like it is in a better position than other countries and that margin perhaps is shrinking, especially given the craziness in washington, forgive my language. shery: not to mention the impact it would have on confidence. we saw consumer confidence plunging to a low and today the spending data not looking great. how strong and healthy is the american buyer now? carl: american consumers have outpaced expectations for most of this year, so i am hesitant to predict they will slow down, but several things are coming into play. interest rates are clearly affecting those households that

need to borrow. we have had a resumption of student loan payments that will begin next month and some have started earlier. that would take a little bit out of household budgets. the employment market is exceptionally strong, but a little softer than it was so wage gains might be more modest, and the confidence as you noted in the future is one of the big ingredients when it comes to spending, and higher oil prices will not help in that regard, so expect it to continue to contribute to growth but not as most of this year. paul: i want to get your thoughts on some comments we heard from ray dalio who says he's concerned about the price action in fixed income and he says the u.s. will have a debt crisis. is this something that you think about as well? carl: it is always beneficial i think to get out of consensus opinions to make us think.

he is a very accomplished gentleman and has also predicted i think the last crises so i don't know that his record is that good but the ingredients are lined up and we are seeing the fraying in the corners of the fixed income market, the leveraged lending market. we want to watch that to make sure it does not go farther. i would note that by and large household and corporate balance sheets in the united states are still in very good condition with a lot of low interest debt locked in for long terms and after alll the profitability has been good up to this point. always great to get your perspective. shery: let's state with the outlook for the u.s. economy and bring in annabelle for morning calls. unless still adjusting for that -- analysts still adjusting to that higher for longer narrative. annabelle: it has been the theme

this week in particular but that resilience amongst consumers, and traders having to rethink where they see the recession outlook for what policymakers will be doing, so reaction really coming through noticeably at the longer end of the curve with the 30 year but the 10-year as well. goldman sachs changing their forecasts where they see it ending up so by the end of 2023 and 2024, 4.3%, compared to where it was previously at 3.9% by the end of 2023 and 3.75% by the end of 2024, so quite a bit of repricing on that forecast. bill ackman has been on see nbc giving an interview. -- see nbc giving an interview. he said he would not be surprised if the 30 year yield goes well into the 5% territory. what he is concerned about in particular are energy prices

higher in interest rates among the factors and short-term he also says geopolitical headwinds or risks are huge concern for him as well. paul: what will this mean for the yen? how much weaker could we see that hit? annabelle: of course we have been tracking that rate differential between the fed and the boj, and the yen still very close to reaching that 150 mark. market players have been wary of testing how much further they can push that weakness with the risk of intervention and we have seen japanese government officials coming out across the week to give verbal warnings, though nothing more direct as of yet, but someone we have been speaking with mr. yen about, a former top fx official in japan on the level he would be watching for that would really make the japanese government officials nervous, well, take a listen to this exclusive interview. mr. yen: it depends on the situation at the moment, but something like 155 is the level

which they would start to worry. shery: 155. we are close. still ahead, shares of u.s. carmakers gain as the q a w dials back -- uaw dials back its push for a 40% pace. the latest is next. this is bloomberg. ♪

>> we don't want a trade war. on the contrary, that is why we made a clear position on our relationship with china. we would like to rebalance our relationship to address the critical vulnerabilities. >> we want to sell our cars in europe, north america, japan, china, africa, and all the places but this means we are open to get the cars of other countries also on the market of germany. paul: eu officials trying to dial down fears of a trade war. honda has unveiled its first fully electric suv as it attempts to reenter the u.s. tv market. it was codeveloped with general

motors and is built at a gm factory with key points from gm models. honda plans to start production of electric cars in 2025 and those vehicles would use batteries from the $4.4 billion joint venture factory. shery: shares of the big three u.s. automakers jumped on a bloomberg scoop and we have learned that uaw wants to emerge from its strike with a pay hike for workers that at least 30%. that is lower than the 40% hike the union initially proposed. su keenan joins us now with the latest. does this mean the two sides are getting closer? su: that is the perception of the market as shares rise. they are saying with the union wants to do is establish a floor for the pay rise it would accept it which is at least 30%, and their hope is to take that to the broader automobile industry

to attract more union numbers so the level is lower than the 40% hike the union initially proposed to the big three automakers, and the on mobile makers were offering half that. the union president sean fain is on a mission to expand the uaw by organizing future electrical battery plants and organizing workers at tesla and at plants of asian and european automobile makers, of that appears to be behind the new number floated. news the union may be coming down off its wage demand, it has previously come down to 36%, lifted automobile stocks. gm and ford in steep declines due to uncertainty on negotiations. as for the status of contract talks, ford has offered a 20% increase plus cost-of-living or cola payments on top of that. if the cola formula gives workers additional races in the

union's four is 30% or more, this could be an indication that a smaller gap exists between the two sides and uaw sources said the union submitted a counterproposal to one carmaker thursday. one point about the 30% number, it is releasing is helping to boost union membership which is the uaw has fallen to 400,000 for more than one million if you go back to the 1970's. paul: what will happen next? the union has a new deadline friday. su: it is expected they will step up strike activity if they don't get progress, the carrot and stick, rewarding forward with the counterproposal, and you're looking at automobile suppliers stocks increasingly responding to the headlines about the strike, and you can

see a lot of green on the screen. that may be because last friday the union stepped up strike activity to target some 38 automobile parts suppliers of both gm and iron ore evergrande ---- stellantis. we are hearing the union will address the next steps at 10:00 a.m. on friday and that would depend on how strong the proposals or counterproposals have been. one quick word about the war of words between joe biden who was on the picket line wednesday, trump went to michigan on thursday. biden has slammed trump for his speech in which he told workers "biden is your problem because he wants to have electric vehicles." he also attacked ford and gm for not doing more to attack the

biden policies. shery: tune into bloomberg radio to hear more from newsmakers and get analysis from the team broadcasting live from our studio in hong kong. listen through the app, radio plus or bloombergradio.com. plenty more ahead. stay with us. ♪ ♪ explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles. it's possible.

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several u.s. investors are considering investment in the pga tour and could provide an alternative to the pending deal with the public investment fund of saudi arabia. let's get more details from our senior editor for media and entertainment. which companies are taking an interest in the pga tour? >> we have reported its endeavor which is a talent agency, high-profile executives, our and the folks that on the boston red sox, john henry's company, all three are reportedly interested in investing as an alternative to the deal with the saudi arabian investment fund. shery: what else do we know? will this get through? chris: still to be determined.

in fact it may be they agreed to partner, but when that deal was announced in june was a big surprise. the liv took a lot of players and had the money from the saudi arabian government and this combination blessed summer was really sort of -- that happened last summer was huge news in the golf world. pushback in washington and other circles given saudi arabia's human rights record, so it is possible now these few months and that some change in the whole arrangement happens. shery: does this make a material difference to the players, the tournaments, the deals when it comes to the business out of golf? chris: it seems to be changing more in recent years than it has before. we have seen other partnerships and rifle leagues and team--- rival leagues and team-based

plates unders a lot of money chasing sports wall street money , and it's being treated more like an asset class so we are seeing different scenarios. it has certainly changed the world of golf, luring these top players to this other to her. shery: the latest from the golf industry and all of the deals happening in that sector. take a look at how currencies are trading after we saw the dollar falling for the first time in seven sessions in new york. still around the highest level since december last year, and on track for an 11th straight week of gains. on the others of the trade, significant weakness for asian currencies including the japanese yen, although we did see it rise slightly given the verbal warnings by japanese authorities about a potential intervention.

you are looking at the policy and kiwi holding steady after small gains in the previous session. the aussie rising from the weakest level since november and both currencies hit by prospects of what happens in the chinese economy. the offshore yuan holding at that level. paul: let's look at asian markets as we head into the final trading day of the quarter in asia. it has not been a great quarter. the msci index all 3.2% but were set up for a bright finish. we have been trading for one hour. up 4/10 of 1%. expecting to get off to a good start in australia as well when we start trading in one hour with futures higher by two thirds of 1%. the nikkei futures also positive , only just. still a week yen hovering around that 150 mark and we heard from mr. yen singh 155 is a level to

watch for the intervention. we are just before the golden week holiday. it will probably be a quiet day in australia with melbourne with the day offer public holiday. , coming up ♪ we dig into chinese markets. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice? i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial.

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>> welcome to daybreak asia, we are counting down to the major market opens. >> the top stories this hour, asian stocks following a u.s. rebound, treasury yields falling on dovish fed comments and