thank you to tom mackenzie and adam haigh. let's get on to the first word news.th the latest on the terror front. the u.s. moving ahead with -- terrace front. the u.s. moving had to investigate a french digital tax. that's despite an apparent agreement at less months g7 summits. the move concerns france's plans to tax digital giants like amazon, facebook, and google. present macron said at the g7 that he and president trump had reached a deal. tanker has reached for in the eastern mediterranean and has sold all of its cargo. the foreign ministry in tehran made the announcement but offered no further details. it was thought to have been carrying 2 million barrels of oil. the foreign ministry indicated it may soon release a u.k. flagged tanker it seized on july 20. the hong kong government has condemned the groups of what it calls radical protesters. this after more clashes with police. on sunday, demonstrators vandalize a subway stations and a set fires in the street. thousandsens of marched to the u.s. consulate to appeal for help in the bid for democracy. on sat

adam haigh is with us. in australia making a comeback, even though we have the rba looking to cut tomorrow. could there be life in the rally yet? adam: in this sense, we are looking on the corporate side of things, u.s. dollar bonds that have been performing pretty well. the mortgage asset space is up 9% so far this year. as you say, we have had those cuts from the rba. we have also had a few other things that have removed the risk premium going into the election. there was a lot of fear around the restrictions to what would flow through the housing market, if the labor market got in. that didn't happen. you have had a decent. run up as we go into the rba meeting, it looks pretty set up for a market that is expecting a third interest rate cut this year. the thing that may sway of course is what has been happening with the housing market which is enjoying a nice recovery. it does put the governor in a tricky spot as to how far he wants to reinflate prices they are given there was so much scrutiny over the las

also thanks to adam haigh.up next, more on commodities, traders and analysts expecting a new picture of agricultural forecast this week. why some are bracing for the worst. this is bloomberg. ♪ paul: i'm paul allen in sydney. shery: i'm shery ah in new york. investors will get an update on the state of markets this week and there is a rumble going in the corn market of hedge funds and analysts take opposite views ahead of a key u.s. report. sophie has the latest on that. what is the story? enthusiasts,orn the attention will be on harvests this thursday when the u.s. department of agriculture releases its report. an analyst expects the agency will be aggressive in cutting its outlook to below the august estimate. if the harvest is indeed affected by heavy rain. analysts have expected that to happen. the last few months, the usda delivered an outlook for a bigger harvest. hedge funds are betting that scenario will come to pass again, increasing their bet on corn for a seventh straight week. this as the foreign ma

us.ave adam haigh with a bit of a cocktail of negative news coming all that once. of that sentiment and how much more downside is there for risk assets? adam: this is a confluence of things coming together to put pressure on risk assets. the overriding change in the last 24 hours has been the idea and reports of the potential for impeachment which is adding some risk premium to the market. on top of that, trade tensions with china and a very poor print from the u.s. consumer which has area of last remaining strength in the u.s. economy. a lot of people thinking if you do get a bit of a pullback in the consumer sentiment then of course that does not bode well for the u.s. economy. those things together are adding up to provide a little bit of a negative backdrop. asian equities looked like they are going to start the day reasonably weak. we are looking in the region of 1% or so for the open in japan, and also somewhat of that magnitude in korea and hong kong. there is clearly the sentiment has shifted quite significantly. it begs the question of whether this filters

shery: adam haigh from sydney and peter coy in new york.you can tune into our coverage of the ecb decision on bloomberg tv and radio starting at 7:45 p.m. in hong kong. plenty more to come. this is bloomberg. ♪ shery: i am shery ahn in new york. paul: i am paul allen in sydney, and you are watching "daybreak australia." ipo sagak continues. they are considering major changes to address investor concerns. banks -- as low as $15 billion. joining us to discuss is david kirkpatrick. a bit ofad wework make a concession i guess. it will change its corporate governments to ease investor concerns. is that a tacit admission that its corporate governance left a lot to be desired in the first place? david: it certainly is, but there is plenty more about the company that continues to leave a lot to be desired. it tendencyarily, to continue to lose money with no prospects of reversal in that. investorto me, it any that puts money into this company is probably going to regret it. you are not alone in your thoughts, david. last month, we have the ceo make

editor adam haigh joins us. ets take solace from the latest commentary from china authorities when they signaled more reductions in the rrr? adam: no doubt it offers some comfort to global investors, especially after their being so much negativity coming from china out of the next year or so. projections are for economic growth to continue to be under a period of sustained weakness. we had that weak pmi number coming out over the weekend as well. you can see this chart those cuts that have been happening over the past years. certainly the state council calling for the use of tools which will include most probably over the next 45 weeks another cut to the rrr. .urther easing is needed chinese authorities were not going to follow up with these kind of polyps -- policy tools -- it was not chinese authorities were not going to follow-up with these kind of policy tools. this is at least providing some comfort now, and it's a little more clear that this indeed is the next move, and it's coming relatively soon. shery: n

global markets editor adam haigh joins us. slide in treasury yields could continue this week or will the latest of elements ease demand? adam: it is an inflection point. they really want to add risk to their portfolios. stocks had a decent pullback at the end of last week on friday but we remain reasonably close. u.s. equities and places lay in australia, where equities have been performing well, seems like there needs to be more development on the trade front to really get that risk on entry pushing further. the latest of elements are in terms of the late -- last 48 hours and haven't moved the dial enough to see any meaningful progress which brings us back to hearingwhat we will from central banks as to whether that can help. we have positions in places like thailand and new zealand, whether they could have movement but on the biggest central banks, it is a bit of a quiet time for the fed. we have the new york fed president speaking and others on the regional cyber nothing to see to really invigorate some of the risk trade. at

adam haigh is with us. like there is an impasse in trade negotiations but some of the market saying maybe it is time to start thinking about betting on getting a trade deal. adam: obviously, the market is taking the view at the moment that negotiations are still stalling somewhat. you have had a continued bid and treasuries at the start of the week. we don't have a huge amount from the u.s. markets overnight. it is looking like a cautious start in asia but there is a view out there by folks at bank of america that president trump going into the 2020 election next year does not want to cause a recession and he will do everything he can and get a negotiation on the table to prevent that. his he is betting on there's a bit of a turnaround on some of these things on the chart. when you get of it of a rebound. it is a bold call it the moment but not one we should probably ignore because the markets position for this trade fallout to continue. plenty of people including john hoeven that we heard from in the u.s.

global markets editor adam haigh is with us.ere going to be enough to satisfy those looking for more stimulus from china? as we were hearing from tom, it's pretty clear the expectations are for a further reduction, but the concern of the market is more around how much of this easing is already baked into market prices. you could argue that a lot of recent recovery in chinese equity markets is only partly to do with ongoing expectations for further stimulus. we have had some weaker dater this -- weaker data this month showing the chinese economy continues to be pretty well constrained across the board. it is an ongoing project, and it takes a number of months for a lot of this to feedthrough. the rrr cut in earnest really only started this week, so you have to wait to give that time to come through, and indeed, if that rate is lowered today, again, it is another incremental move, but it takes a while to filter through. of course, there's plenty of people expecting we get into next month, we may get some kind of aggressive stimulu

adam haigh is with us. bonds in australia making a comeback. we have the rba. be life in the rally? adam: a lot of this is risk premium having come out of the bond market. think back to six months ago, there is a lot of worry we will be in a labor government, change of government, put pressure on the economy and housing market. a lot of that hasn't happened because liberals have stayed in power. you had the easing of the restrictions on credit growth, and you have had two rate cuts from the rba and the markets are pricing strong chances. you could get a third rate cut. all of this in the mortgage asset spaces leading to a decent around 9% inets up the fixed income space. this of beneficiaries of risk premium. further can this go in people think about perhaps even as low as half a percent on the rba cash trade by the middle of next year, when does that start to be a drag and people don't find they want to take additional risk? looks like that is in place but when we reach infection point, it is hard to say. shery: in china the markets have one day before a weeklo

what we should be watching as trading gets underway in asia with quote of -- global markets editor adam haigh attack is about markets pricing geopolitical risk, or is it fundamental concerns about high energy prices weighing on growth? former. looks like the you are seeing reasonable declines in the risk assets we use at this moment before equities get trading, s&p 500 futures down but not by a huge amount. treasury futures are up .2%. is people taking risk off of the table first thing as they react to this. it doesn't look like some of the really, the real fears around supply shock are as great as may be some expected. part of it is because you did get that note from trump about the emergency reserves and that is clear. risk assets, we are doing well on the last several weeks. we have had gains in global equities and that chart has had pickup in double bond yields. the question is whether the geopolitical risk we have seen rising over the weekend really sets the tone for a change in trend in yields, and with a dip in yields expected when treasuries start trading in london later on, we have t