haidi: i am haidi lun.u say, lots of risk this week, monetary policy with the wrath of -- with a lot of central bank decisions. u.s. ig tech names in the china would like to see some yuan stability. the biggest market strategy -- the biggest risk to look out for. incomeia's head of fixed joining us. chart start off with a that will change the issue of whether currency, volatility and the contagion question is going to be a key thematic into the trading week. this is the gtv library. market sentiment expressed in this cap between offshore and onshore, offshore was trading weaker for 32 days. you can see the pessimism building. has it surprised you we have not seen overt intervention or job earnings from the pboc? >> it seems they have been comfortable with depreciation. it has been a controlled but .airly meaningful move at this point after more than 5% decline the past several weeks, it may be the pboc will shift to some other methods to lessen financial conditions. haidi: is the possibility of a currency w

haidi: i'm haidi in sydney.ming up, continued yearlong talks about building a tezz laplante on the mainland. this is "bloomberg markets: asia." haidi: mixes on consumer inflation out of china. in a check it stills there's a little bit more momentum. on the consumer side still far from the target rate. if you believe the theory they're tilted toward pro growth you have a little bit more wiggle room in targeted easing. david: is speaking with jeff dennis earlier on bloomberg radio. the effort b.s. strategist. a lot of indicators are starting to point as being either at or near the bottom for that index. whether that's stability in the chinese currency. the dollar not seeing too much strength already and maybe the data as well as you alluded to. getting in line with perhaps a rally ahead. market-wise china wasn't really playing along. haidi: china not playing along but other markets across the region. the regional benchmark extending gains from a nine-month low by the yuan is losing ground. the korean yuan we rever

haidi: this is bloomberg. ♪ haidi: this is "bloomberg best." i am haidi lun.s continue our global tour of the week's top business stories with a message from president trump that made an impact on oil markets. >> oil prices slipping after president trump said that saudi arabia's king had agreed to increase oil production. both he and the prince backpedaling on those comments. it added to the pressure yesterday during an interview on fox. president trump: opec allowed less than we thought last week. they have to put out another 2 million barrels, in my opinion, because we don't want that happening. >> what does the president want? does he want the saudis to break from opec? >> i think the president wants lower gasoline prices heading into the summer. how that comes about, i don't think is particularly his concern. does he wants to see the end of opec? i think quite clearly, he has done for many many years. i think he needs to be really careful what he wishes for, because without the spare capacity that countries like saudi arabia and one or two others in opec h

haidi? ahead, thel potential impact of the trade war on the u.s. midterm. chair joins ust later. ramy: we talk market strategies. this is bloomberg. ♪ haidi: this is daybreak asia. i am haidi stroud-watts in sydney. ramy: i am ramy in new york. let's get to central banks. jay powell says there is no indication a recession is imminent. he did acknowledge an escalating trade war is a risk to his rosy outlook. and policy editor kathleen hays is here. he decided he was not the person to criticize that. kathleen: i think first of all the fed chair said many times, at the fed we stay in our lane. he was asked so many questions about trade. -- democrats wanted him to talk about how terrible trade was. he prefaced it by saying, if toiffs are used as a tool force other countries to open up their markets, this could be good for the u.s. economy, and in fact, workers around the world. isis positive there, but quick to add there are definite risks and the risks are growing. let's hear what he said earli

haidi: i am haidi.ve signed a deal that scraps a wide range of duties and regulatory obstacles between the two economies. they want to send a powerful message against protectionism. they join us now from tokyo. name trump or the u.s. specifically but this is a point of emphasis on uniting against u.s. trade policy. it is true that they did not name trump or specific nations. given what is happening globally, it is pretty clear what they're sending a message about. they could continue to find protections. the longer term or shorter-term applications when it comes to markets -- implications when it comes to markets? >> in the short-term, i think it is clear that the risk is for the market. manycould be affected by concerning things about a possible trade were between china and the u.s.. for a long time, it could be a little bit more nuanced. we have to think about how it will be implemented and how long it will take to fully implemented. given because of that, the outcome will be affected by the process.

haidi: i am haidi lun in sydney.'s official factory gauge fell more than expected as the two biggest economies head towards a potential trade war. joining us is a senior economist. great to have you and happy monday. it has been an eventful six months. we have seen potential decline in export orders. investors and factories, companies having frontloaded that number, now starting to back away. you see that because of trade uncertainty? >> i think chinese data has been taking a bit of a softer hit over the past few months. chineseit is a sign economy has been slowing over the past year. the people's bank of china policymakers are trying to take an active role in the market by easing the monetary conditions and liquidity for companies which we are seeing with a cut to the triple art, and that is likely over the next two months. haidi: every market and fx market in china has really been roiled. what is your expectation for when they step in? 6.7 seems to be the level for the yuan. diana: if you look at the changes in the

this is bloomberg. ♪ haidi: i am haidi in sydney. i am ramy inocencio in new york and you're watching "daybreak australia." jay powell says the central bank will stay on its gradual rate to keeph for now inflation near target as the u.s. labor market tightens. trade tensions could be a threat to wages as well as growth. kathleen hays is here with a look at those two words bringing andhe words of economists investors for now. why does that matter? kathleen: pretty quickly, that foot everybody was looking at. the fed sees more rate hikes. let's listen to exactly what jay powell said as prepared testimony earlier today. job market,rong inflation close to our objective, and the risks to the believe thatce, we for now, the best way forward is to keep gradually raising the federal funds rate. kathleen: why is that a big deal? more and more people are dignified on autopilot. let's take a look at the dots dot plot. rise interest rates regardless. looking for the four rate hikes. jay powell made people think i guess it is not a done deal

haidi: and i am haidi stress mars in sydney.or banks in japan, the fed is also up next as well as the bank of india and the bank of brazil and the boe. our chief asia correspondent joins us now. let us start with the boj, what was the key takeaway for you. >> good morning, haidi. i think there was something for everyone. on the dovish side of things, it was clear the boj was doubling down on this massive money printing program to have designed to stoke inflation and growth. there was no signal that they would be pulling away from that trajectory anytime soon. on the other side of things, he threw out measures to deal with the criticisms of his program. program ismoney hurting profits for banks and distorting the stock and bond market for example, so a loving more flexibility around the 10 year yield, for instance. total, he did address some of the concerns around the boj policies, but you have to say that the biggest pressure from governor kuroda is that he is very much committed to this massive program. haidi: the r.b.i., let u

haidi: and i'm haidi in sidney.he bank concluded its meeting on tuesday there were talks about massive monetary stimulus programs a lot of economists saying even talk of an adjustment is premature. we're joined by chief market strategist evan lucas from melbourne. great to have you, evan sit premature to start talking particularly as we get this kind of jolting effect of central banks plarkly here in asia, trying to balance, to react to some of these trade war tensions. trying to react in spots of inflation here and there the bank of japan mandated very clear, they're nowhere near that 2% inflation target. >> exactly. it's k that's the way going to go. we are getting spots of inflation that is actually showing sustained signs, it's actually happening in the u.s., not happening unfortunately in the asian region and you're right, japan is so far away. they've had that 2% mandate for going on five and a bit greers and they haven't got within touching distance, let alone distance to give them the ascension to move towar

haidi: thanks for that. stealing the headlines again as he took aim at china and the glue for alledge lately -- allegedly manipulating their currencies. but steve mnuchin is -- by our chief agent correspondent. we have seen some of these high-ranking officials having to walk back and go into damage control. >> that is exactly it. it is a familiar pattern. making strong remarks only to use the next available for him to walk back. that is what happened on mr. trump's tweets on the dollar. by all accounts it seems mr. fears andemed to ease assured colleagues u.s. remains a minute to a strong dollar policy. nonetheless, it is still under the spectra because all of the g -- still a pretty nervous backdrop. all the g20 nations are concerned about where china's yuan are headed. i think a lot of trade ministers around the world are hoping someone -- there will be a way out of this. leaderserned were g20 about the trade wars and the impact on global growth? >> seems they are increasingly concerned. this was easy to s

haidi: i am haidi stroud-watts in sydney.usiness flash headlines, an unexpected loss and setting up five more money to cover debt. the mumbai best -- based lender had an $18 million loss compared with a $213 million profit for .een by economists but they were the lowest in 11 -- nearby loans were the lowest in 11 quarters. they are looking at corporate governance practices. ramy: petrochemicals business, the weaker rupee boosted earnings. jumpinglion, but sales 36%. the billionaire upstart telecom business alliance geo reported a third straight order of profit. zte revised their first quarter profit to a loss of $700 million after more than $1 billion in u.s. fines. the telecom equipment maker had already flagged losses from the penalties in the first half alone. they are getting back up to full speed on resolving the ban on purchases of critical american technology that shuttered its factory. reported bumper quarterly earnings even as the trade war threatens to derail global growth and crimp demand. net income of the heavy e

haidi: thank you paul.emember bloomberg users can interact with the charts we have just shown with gtv . you can catch up on key analysis and research if you wish to do so. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." a quick check of the latest business flash headlines. afterore airlines fell force quarter profits -- singapore has been revamping cabins and adding new planes to compete with premium and budget airlines. nomura fell by the most since 2016 after net income tumbled to $47 million. the brokerage lost $47 million outside of japan, two years after returning to its national profit. revenues fell across the board. business at home also suffered from trade war jitters. >> we cannot say yet how the u.s.-china trade war will turn out, however the renegotiation s remain and auto tariff central things, and will cause and will l themes, cause turbulence to come. haidi: amazon seeing first quarter operating income up to $2.4 billion, igniting investor optimism about cloud computing. a

bloomberg.this is ♪ haidi: this is bloomberg markets: asia. i am haidi.ishaad: i am a shot salamat in hong kong. -- rishaad salamat in hong kong. joining us is jim mccafferty. in broad brush strokes, what is going on. ? jim: china is paying lip service to what trump requires. china has absolute control. policy,ols its one trip its fiscal policy and it can use its currency to make its goods more competitive in the u.s.. that actually acknowledges the trades. china is using all it has available to it. i will bring you a chart. this is showing one has been happening in the emerging markets and the pain their suffering. this is the emerging-market index stocks in the white. those see money flooding on right now. i'm getting a sense that we are china that bottom? jim: is down about 6% so far this year. japan is the biggest constituent of aipac. shock.an exhaustion us the stocks have responded to china pumping more money into its economy. endogenouslots of things that asian companies can do to improve the way that investors work with them. things like dividends

haidi: and i'm haidi lun in sydney. let's get a look at the headlines.ipo off to a bad start even before shares listed on hong kong on monday which have been at an almost 10% discount. , cutting the bottom the valuation to about half of its initial goal. scrapping plans for shares on the mainland after setting aside chinese regulators. haidi: in charge -- kathleen: in charge of the companies upon, he will replace the head. the management shakeup is part of the price. the sock is lost half of its value in hong kong since resuming trading last month. the iconic plaza hotel may have been bought by qatar. it set to acquire 100% of the property in a deal worth $600 million. other suitor say that they have a legal block on the deal and it is impossible for the transaction to have gone through. they have been trying to offload the central park property for years. kathleen: china has seen investors are treating, but it is managing patches for some of australia's smartest people set to buy. we will take a look at their strategy coming up next. we will also be che

haidi: and i am haidi in sydney. bondsman -- steve goldman who is kapstream capital pty ltd, manager director and portfolio manager. what is your approach? steve: it is that or dependent, when i look at the data it is data, but it's not inflationary. i am talking about wage growth and average hourly earnings being well below 3%. in my mind it means you will not see rises in court inflation at least not yet. haidi: is that the new normal? is that the time we are in? because of it is automation or globalization. we are just not going to see that pass through. stee: certainly the bargaining power is lower than it was years ago because of those technological changes because of globalization that is part of the reason why we are not seeing -- thath growth that wage growth. haidi: this is research from the query, looking at the liquidity crunch or the reaction i guess you can say that the fed is going gently but that retreat in emerging markets, the retreating credits, it tells you that the markets are telling the fed not

>> hi, haidi.ht now, traders in the oil markets have a lot to take in and as you mentioned of course the weekly statistics out of the u.s. are always a driving factor but this time it's a little complicated because of the july 4 holiday. overall i think the market is still quite nervous. -- of the u.s. trying to, attempting to follow a policy on iran, there's a big fear right now about potentially all of ian ran -- iranian crude exports disappearing from the market on the fourth quarter. on the other hand, opec and nonopec doing their best to put more supply into the market. within that, i think overall the net sentiment still remains bullish. haidi: if you take a look at the plan to injection an additional one million barrels, does that take the market into some sort of equilibrium? >> the one million barrels per day came after first of all a lot of internal conflict within opec. so again let us remember iran and a few others within opec, vens way lark iraq, and syria included, are against theaven

haidi: thank you. china will stand firm in the face of what it calls trade bullying from washington with business leaders and state media predicting the u.s. will be the biggest victim. tom mackenzie joins us from beijing for more. apparently we are in a trade war. what has been said over the weekend? tom: reaction from the state media but also have a business summit that was held in beijing. we heard from the vice commerce minister who was instrumental in the talks between the u.s. and china when it comes to trade. he took to the stage and called on businesses to push back against this trade action from the u.s. and said he hoped the business community would uphold globalization and the multilateral trading order. critics point out china's claims that it supports globalization do not stand up to scrutiny but those were the comments from the vice commerce minister. we followed him out of the meeting and try to ask if talks were going on between him and his u.s. counterpart because that would be key. he

haidi: i am haidi lun in sydney.nics reported a rise in second-quarter operating billion, but.2 fell short of estimates due to weaker sales and sluggish demand for memory. joining us now is qu hongbin. he has a price target of 56,001 for samsung shares. before we move on to fundamentals, your thoughts on the impact of the worsening of the trade environment. we have heard from the finance ministry in south korea saying they can't rule out the potential impact to south korean exports and economic growth and demand for south korean goods, which samsung is such a huge component of that ecosystem. , in terms of trade war, yeah, there is some concern on the market. also, i believe there is a huge intention of chinese manufacturers to join in to the memory market and the trade war .etween the u.s. and china it may support that intention for manufacturers to join in. , i am not so run concerned because it seems samsung has a clear cost advantage on its production, so in other words, we see a huge advantage on the production

haidi: and i am haidi in sydney. you're watching "daybreak: australia. ."s included the competition with disney, on fox. comcast closing 2.5% higher in new york. ramy: iphone supplier taiwan semiconductor has trimmed its earnings outlook for digital currency. singleill rise by a high digit percentage, down from an already reduced forecast of 10%. chips may be vulnerable to president trump's trade war, but tss says it is not yet.g any big threats >> on a the first wave have been executed and we have not seen -- we have seen minimal impact for our business and our customers. fell in the new york. of 528w land orders planes, while airbus the 17 billion behind with 431 planes. they failed to complete unexpected order from air asia, and that the 100 plane deal needs more work. ramy: up next, microsoft kicks off tech earnings season with a strong report. next.runch the numbers but you know, it is the same story we have been talking about, it is all about the cloud. this is bloomberg. ♪ this is bloomberg. ♪ phones have made our lives effortless. streaming must see

this is bloomberg. ♪ haidi: i am haidi lun in sydney.m ramy inocencio in new york, and you're watching "daybreak australia." a quick check of latest business flash headlines. bmw is boosting manufacturing capacity in china to lower its resilience on u.s. imports amid the escalating trade war. bmw and an automotive company agreed to expand their joint venture, increasing production at two chinese facilities to 520,000 cars next year, up from 450,000. they plan to spend money on batteries from china's see atl -- catl. haidi: basf is planning to spend up to $10 billion on a new production facilities in china in what would be the largest expansion project so far. built with basf owning 100% of the operation. this would be the first time a foreign chemical company has gone alone in china. ramy: president trump attacked pfizer overt drug prices. he tweeted that the company should be ashamed for exploiting the poor and said his administration would respond. raised prices on about 100 drugs following a pattern of regular increases that it takes

haidi: gtb go is where it is at. where santos charts for future reference and let us know if rish chose poorly. ♪ emily: i'm emily chang in san francisco. this is bloomberg technology. a rare miss for facebook. plus, on the heels of facebook results, investors gave a thumbs several tech peers in market trading. qualcomm terminates its deal to

haidi: this is back into the old economy.t is interesting that we are seeing that kind of turnaround with a little bit of weakness coming through the services on the nonmanufacturing side given the trend has not been strengthening. this is testing on the old traditional side of the economy. let's get some analysis straightaway. this is the chief china economist. great to have you with us. we were expecting a slowing when it comes to the headlines but it looks like a bit of weakness is starting to come through with and -- nonmanufacturing services side as well. is that a surprise? robin: it is not a big surprise. the july pmi is very interesting because this is the first data point that shows growth. this shows a strong demand and sentiment thing hundred to buy due to trade tension. how much do you think that will play into the second half? physical --e loser physical conditions, perhaps a list of monetary start to the second half of the year. he was still have gdp holding up around 6.5 cent. >> we are impacting the growth to

haidi: and i'm haidi lun in sydney. you are watching "bloomberg daybreak: australia."et you a quick check of the latest business flash headlines. --tralia's real taylor retailer woolworths is running a sale of its petrol stations business to a glass month, they scrapped a proposed one point $3 billion takeover because regulations said they were opposed to reducing competition. there's a new alliance with the retailer including a 15 year steel supply deal. will work shares hit a three-year high on wednesday. to have givenaid itself two years to decide on a possible merger or an alternative way of enhancing a relationship. sources say they want an agreement before carlos ghosn's steps down in 2022.the options include setting up a holding company between them as well the two companies as a single stock. is a: jp morgan says now golden time to buy property stocks in china because the market is overreacting to recent negative headlines. the evaluations is nearing a historical trump at about 5.5 times forward earnings, when industry fundamentals were worse. the yuan was weak

haidi: i'm haidi lun. tencent plans to spin off its music arm in the latest sign the recording industry is enjoying a come back. a comeback.ck -- engle.n: i'm stephen this is bloomberg markets: asia. ♪ david: nice to have you, haidi. welcome to the show, lots to talk about, not a slow start. brexit in full focus. 132.87 right now. you're seeing green because the cutoff is low. we've come up following the also news, david davis reporting that sarah braverman has stepped down. as well.ck that story, haidi: what is the contingency plan? sterling doesn't seem to know. taking a look at trading around shruggingty positive, off the start of the trade war friday. singapore down .25%. you have futures in the u.s. looking like another positive session after you have tech driving those gains friday. let's take a look at trading week in asia. with thekick it off budget round, 1810. that could disappoint as retail and institutional investors aren't showing much interest. ping on health care, a year that hasn't been hot

haidi: welcome to daybreak asia.ries, asia-pacific markets are set to rise after renewed optimism. apple, among the winners. demand for iphones remains strong. services are also paying off. globalrom bloomberg's headquarters, iming new york. it is just past 7:00 p.m. on tuesday. by do is seeing a bounce after hours. it beat estimates last quarter as its personalized news service helps sustain growth. it is time to talk, or is

this is bloomberg. ♪ haidi: i'm haidi insignia. -- in sydney.'s do a quick check of the latest business flash headlines now. bloomberg.d international is considering an offer for all or parts of the belgian company. this could be the boldest move to expand its international footprint. n may increase its current 3% stake. deutsche bank has increased the number of university graduates it is hiring. it has seen several federal -- veteran executives leave. half of their graduates were in corporate finance technology. the ceo wants to slash the overall workforce by 10% by 2020. ramy: harley davidson has trimmed this year's profit margin forecast to 9.5%, down from 10%. that is less than a squeeze -- the squeeze that analysts and's -- expected. shares had their biggest daily jump in 21 months, paring this year's loss. taking a look at what we are watching over the next to yours -- two hours. >> earnings are going to be talk to jime will lowell from fidelity investor. he says the second quarter earnings picture has helped smooth the headlines we have s

haidi: thank you for that.sinha there in hong kong. we will continue to watch the ringgit as we get developments in kuala lumpur, the former malaysian prime minister charged with a criminal breach of trust and penal code. three charges could hold up to 20 years in prison each come up possibly of fine as well. one charge of corruption with 20 years as well. some of these at pictures as he goes into the court, and there has been a move for this case to be heard in the high court and not the sessions court, as counsel had requested. story we will track that and the open in china in a few minutes from now. have a look here. zte in ande the mix as well. flat on the hang seng. the fixing the weakest since august last year. zte has come off its high. the open is next. this is bloomberg. ♪ loomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliv

haidi: and the ecb stays on course for tightening. will get some analysis from constant hunter who is with us. this is bloomberg. ♪ ramy: i'm in new york. haidi: and i'm in sydney. you're watching "bloomberg daybreak: australia." european central bank stuck to its plan and its messaging to in bond purchases as the e.u. steps back from the brink of a trade war. kathleen hays is here with the details. said there's quite a be in the eurozone. kathleen: the three biggest central banks in the world we and the ecb's starting it out next week. they still see rate hikes off in the distance, and a little more andat on euro area growth more upbeat on inflation. his what he said earlier today. >> pressures are strengthening and broadening amid high levels of capacity utilization and tightening labor markets. quick specifically in spite of the mixed nature of the data recently, mario draghi sees that stroke -- showing the economy stabilizing, back in june he saw signs of weakness. the bottom line is now they are expected to end their bond purchas

haidi: in sydney, i'm haidi lun. mexico looks like it is turning left. or looks like he is on the verge of a landslide victory. this is "bloomberg markets: asia." ♪ haidi: looking like a land slide when it comes to the outcome of this mexican presidential election. this is only the first time mexico gets a left-leaning president in four decades. he is someone who has promised to fight corruption and stand up to president trump. some of these pessimistic forecasts, 27% in the peso by december 1, which is when the inauguration would be. david: he is certainly unclear on what his stance is as far as the banking sector is concerned. what i'm watching as well, we had problems early on, does the pboc come in and intervene? he is putting an estimate here. when you look at the basket, he is at a 94, that is the level they may have to come out and suited out. -- soothe out. let's have a look at other markets trading in the region. we have jakarta coming online. not very exciting and inspiring. haidi: not inspiring as we kick off the second half. we do have the ru

haidi: thank you for that. merger mania. merger of nine entertainment and fairfax media in australia. fairfax holders getting 0.29 shares. just a that news crossing now. nine entertainment and fairfax. we did have some alignment between nine and news corp. in terms of data sharing agreements. to try to beat the competition. now we are getting the straight nine to acquire fairfax media in a cash and share deal. more details of that as they become available. let's get more as trading gets underway in asia. adam is with us. notable manager. what is he saying in terms of the uncertain elements? he is saying he is shifting more of the equity portfolio into cash. up to 18% in cash, which is an all-time high for those guys. they've been invested in now and the big names that have done well. they are painting a picture which is unsettling for equity return her's. they want to position cash going into that. one of the scenarios that is significant in terms of the likelihood it could play out is the fed is forced to tighten quicker th

haidi: a bit of a step back. changed your allocations from some of the more under pressure sectors at all? guest: can you say that again? haidi: if the theory is that in order to provide more easing into the economy and to deal with the trade war pressures, that beijing cannot also continue to be so aggressive , does thatraging change your view of the sectors in the industries that have been badly hit by the deleveraging? guest: watching the policy very , the weekend before last we are seeing a solid sign of policy easing which the market reacted to. as i mentioned the cyclical sector will benefit from those. how chineseis governments can counter balance at the trade war negative impasse, but at the same time do not react too much to keep the benefit of deleveraging the overall economy for the longer run. you see the changes up the value chain being reflected in the aggressive strategy you are pursuing on a primary basis? guest: definitely, for global investors and also increasing our domestic clients. they are f

haidi. haidi: thank you so much.ese trailed tensions, container shipping is battling to stay afloat. amid increasingly die verge end markets and also a prospect of a trade war but dry vault is one that seems to be ok. how long lived is this recovery going to be and will we be talking about more of trailed tensions in terms of the recovery in fwrathe rates? let's bring in our reporter. what's the biggest -- if you see. if you look at china and rates elsewhere around the world. >> good morning, haidi. thanks for having me. the trade on globalization and investors are building in the rising protectionism and we're lk about $200 billion , $500 billion. over the next few years, the olume demand has to be shipped marketly lower. that's why we've seen stocks doing very poorly. i think the latest japanese number seems to be slowing down so second half ghanled seems on a much weaker footing than what was expected at the gipping of the year. doing really well. holding up really well. feed so benefiting from growth. rishaad: re

this is bloomberg. ♪ haidi: we are counting down to the sydni open.oking at the futures picture ofwe see an upside at 3/10 1%, but asia and equities broadly looking like they have a stronger start to these session. of course, we have a live picture of the sydney rigid there. -- sydney bridge there. it's absolutely beautiful. hey, i am kathleen hays in new york. you are watching "bloomberg daybreak australia." guest says more volatility as the fed tightens means more opportunity. joining us, mark travis. mark, let's get right to it. i know you say the fed can create volatility, but what if the fed slows down the echo what of trade tensions and china's causes the chief of the fed to throw up his hands? mark: i am more interested in volatility than which way the fed is moving. they stopped and the chinese currency comes unglued or something else happens, that is when we can find a discount between price and value. when we have had an experience like we saw in 2017, with volatility below 12, is very hard for people to be scared enough to throw something a

. >> i am haidi in sydni. ey.sydn >> trump promises tremendous tremendoustion -- retribution if the trade talks do not go well. the next guest says that tariffs are not effective. is a member of american enterprise institute and joins us from washington, d.c. interesting point you make about the bilateral trade deals, as we are seeing with japan and the european union, the united states is lacking in the realm, even though they promise to the contrary with donald trump in office. >> that is exactly right. i am not in favor of the bilateral's and the that the wto and the transpacific partnership would be best, but the administration is not doing otherng with that and nations are doing bilateral agreements. so, the united states is not gotten very far. they were just rebuffed by african nations for a model fta. they are not following through with the second and third best opportunities. >> donald trump touts the possibility of a bilateral trade deals today with mexico and the mexican and canadian officials say t

haidi:al banks speak up to stabilize a slumping you on. >> the fed will hike at least once more. why is it not more than that? sibley because wage growth is still sluggish. haidi:

haidi: i'm haidi lun. tencent plans to spin off its music arm in the

haidi: indonesian stocks looking to buck the regional trend. falling for the first day and four.t the broader market session, stocks recovering. the nikkei and the yen further spread.

haidi: earnings make headlines. caterpillar will show the strength of the system.eek for banks , the r.b.i., the bank of england, bank of japan.

. ♪ haidi: mixed messages on oil. president trump putting pressure on saudi arabia.ouse backs away from his claim. model threehits production targets at last. it has now become a real car company. haidi: china's export growth slides as trade war limbs, five days away from the new u.s. tariffs. ramy: mexico shakes up the system with the

haidi: china's central bank steps up to stabilize a deteriorating yuan. >> fed officials in general sayoperating in top gear. >> they will hike at least once more. why not more than that? because it is still sluggish. >> a return to public markets. they pull out all the sports to reach a

haidi: indonesian stocks looking to buck the regional trend. falling for the first day and four. the king at the broader market session, stocks recovering. the nikkei and the yen further spread. expectations are lowered for a rate hike from the bank of korea. the korean won on the back a 10th of a percent. comes to the outlook for korean stocks, we want to hire the concerns around the chip sector. along electronics sliding in a sold. going on with chinese stocks, adding 1% to hear. recovering from the loss we saw yesterday. as cte -- zte leading the charge. they're gaining ground well resourced players are feeling the pain. oil steadying after the worst drop we saw in two years. checking in on the commodity space. brent rising 1.6%. after thethe front mayhem we saw overnight. copper, aluminum, and steel. we did have a report from goldman sachs that what has been overdone and they have cut the price forecast, in the long run, goldman still keeping a positive view on metals. rishaad: naturally, a bit more coming up on copper later on in the program. the trump administration saying

haidi: i am haidi, instead day. -- in sydney. how much are volvo shares wort

at our tom, haidi reconcile a company that is just growing up with some really disturbing stories likeone? auto making is a very difficult and sometimes dangerous process. four people died at various auto companies across the united states. i think has the says they are safety very hard to take very seriously. they point out during the model their safetyion, statistics have improved significantly, that they are now below the industry average on incidence rate. sign of mistakes the company has made, and how it is trying to course correct. especially at a time where it does not have a lot of time to do that. from my reporting standpoint talking to all of the engineers, a lot of the problems they have had can retrace back to some of the decisions elon has made, including the empowerment of his engineers. it is kind of a double-edged tesla's engineers, they will take a look at the thing like the model three, and decided to redesign the entire heating and air-conditioning system. for company just trying to become a mass manufacturer for the first time, do you really -- beo be read inventing

haidi: u.s. stocks advance as renewed optimism lifted text in recovery.the dollar gained. >> apple was among the winners, the stock rising in late trade as demand for high-end phones remains strong. services also payoff. commodities rebound may give rio tinto a boost later. we expected strongest interim profits