this is bloomberg. ♪ haidi: i'm haidi stroud-watts in sydney.amy: and i'm ramy inocencio in new york and you're watching "bloomberg daybreak: australia." to tesla now and the tale turns yet another page with the s.e.c. now said to have sent a subpoena over c.e.o. elon musk's tweets about securing to go private. an s.e.c. investigation would ask what musk meant in his august 17 tweet that sent this saga in motion. ith naughton, what does this subpoena actually say about this investigation? >> it says the s.e.c. is knew taking this to the next level. it's mechanic a -- become a more serious investigation and they're going to look deeper, particularly at the part of musk's tweet that says funding secured because it appears funding was not secured. he said in his log post on monday he's he'd been talking to officials but it had not skired the funding. this is another example of elon putting the cart before the horse. he said two days ago that he had goldman sachs as an advice advisor but it was only today that goldman sachs confirmed that. he seems

haidi: i am haidi stroud-watts.gets underway in the gold mining town of cargo really in western australia. our reporter is on the ground. what is the mood like? it is not a bad time to be an aussie gold miner. paul: that is right. the mood of this conference is typically upbeat. if you have a look at gold, the miners have swelling cash piles and very strong margins as well. the aussie gold miner valuations are on a par with the valuations of the north american peers for their first time in ever. futures that show this. ine a look at gold price aussie dollars. it has been falling in u.s., but because the aussie has been offening, gold is only $160 the high from 2011 and 2016 when you price it in aussie dollars. this shows you the valuation of the australian gold miners compared to the u.s. peers. you can see outperforming. this would have been compared to m&a. what does that mean for the deal side of the digging? credit, 250 billion -- they are investing in london gold. also looking at potential u.s. deals are the ev

haidi: this is bloomberg. ♪ haidi: it's 9 a.m. here in sydney.ific markets facing a mixed open at the end of this week. they were tensions continue to weigh on sentiment. private gains in the regular session and rose reports of an imminent word meeting. kathleen: from bloomberg's local -- global headquarters i'm kathleen hays. trade tensions may be affecting companies with supply chains in china. an elephant starting to run. the booming opportunities in india.

haidi? looking to the latest trade numbers out of china, the first reports is the first round of tariffs. we have a mixed picture so far. south korean picture looks a little better, but china pmi's suggesting clouds ahead. we will get the view from our guest next. ramy: and we look at what is driving a busy season for ipo's in hong kong. this is bloomberg. ♪ ramy: this is "daybreak asia." i am ramy inocencio in new york. haidi: i am haidi stroud-watts in sydney. the u.s. has confirmed it will impose tariffs on another dickstein billion dollars of billion ofds -- $16 chinese goods, delivering on a previous thread. tom mackenzie is watching this from shanghai. as markets shrug it off, it continues to incrementally escalate. tom: like tennis, the ball now is in china's court. they are likely to hit back and detail their own extreme billion dollars of tariffs -- $16 billion of tariffs. then you look at washington, the ball goes back to their side. reviewing $200 billion of tariffs that could be

haidi: i'm haidi stroud-watts in sydney.want to get back to the topic of turkey because the question is if it is in the us and credit -- if it is idiosyncratic pace, stop these,oved to stemming the bleeding for now. tensions with the u.s. show no signs of abating. they are escalating. joining us is a managing director. happy monday. here is a chart to start our conversation. this is looking at correlation risk between the euro and the lira. as volatility rises, we have seen greater correlation between asset classes. is this something you are watching given the euro is two thirds of the dollar basket? >> it is something you see, big markets selloff. -- sell off. if you look at turkey, the economy is not that big, it is $900 billion. the european is $17 trillion. it is not huge part of the pie, so certainly you want to watch it because [indiscernible] haidi: the problem is it could get quite bad. there is no circuit breaker insights. policymakers are not doing anything because whatever they do is likely to be more backward for

haidi: thank you so much.still in the spotlight, a chinese company is also in the sport -- this is bloomberg. ♪ haidi: this is bloomberg markets: asia. south korea's antitrust watchdog has put the country's family-run conglomerate in the crosshairs. to limit put in place their dominance over minority shareholders. stephen engle joins us for a closer look. at what is the idea behind this? is probablys something that has been long coming, especially after the recent candles involving the heir apparent at samsung who was briefly jailed. also the impeached president, going toesident who is be serving a sentence of 25 years in prison for various bribery charges. once again, this cozy relationship between big as this and south korea and of course the government has long been in the crosshairs, even more so since moon jae-in has taken office. the bigescribed corporations and south korea as deep-rooted evil. this is kind of following through on his campaign pledges. what we're hearing from the regulators, the fair tra

haidi: it's in the i'm haidi , lun. and hoping good results will overshadow the worries about turkey. this is "bloomberg markets: asia." ♪ rishaad: let's take a look at the markets, just coming through, singapore. we have the index and the market there. you can see, moving in opposite directions, putting much flat with the fears of contagion debating. futures on at indian the way of asset -- after the rupee hit a record low. comeback, a offensive after the medical monday, as we have dubbed it, after concerns over turkey. want to watch, the session getting underway with the world's biggest assembler of electronics, otherwise known as foxconn. we expect the drop, the today drop just about 24% -- just over 4%. over the year, 30%. surprise drop in earnings, amid the demand for apple products, but certainly when you talk about the threat to asian supply chain the result of the trade war, that is one of the names to watch today. also counting down to the open in hong kong. slow credit growth in july for china, really highligh

haidi: all right.heng that story along, canadian dollar rose to its highest in two months on the optimism ottawa will reach a trade deal with the u.s. and mexico. commerce secretary wilbur ross spoke to bloomberg, and said the u.s. is keen to bring in its northern neighbor. >> we are asking candidate to consider joining in the agreement already reached with mexico. that's the basic ask that we have. what remains to be seen is how close the canadian attitude is toward that. haidi: let's bring in eric martin, who covers mexico and latin america for bloomberg news. lot of detail and clarity, but it seems like the story is moving very quickly? eric: absolutely. we have seen in the last 20 for hours, perceptions changing from a concerned that perhaps they would not be able to get a deal with mexico or with canada, to having one of those two checked off the list and a surprise to many following this process for year now, that mexico was the first partner with whom the u.s. was able to get a trade agreement.

this is bloomberg. ♪ haidi: i am haidi stroud-watts in sydney. am a knee inocencio in new york -- ramy inocencio in new york, and you are watching "daybreak australia." japan's top wireless carriers tumbled after the government said they have room to cut some bills. they lost $9 billion in market cap when chief cabinet secretary -- said they could lower build by 40%. he also said competition between the big three was not working, sparking concern the government will renew its push for greater choice. haidi: american airlines is dropping a second major china route after services turned out to be a colossal loss. direct service between chicago andchunk -- sean high -- shanghai will end in october. it will connect the two cities. an insurance company bolstering its case for buying credentials business in asia. results show profitability in china, at its weakest in six years after a rebound in the second quarter that may revive talk about buying the operation, a deal that would bring customers from singapore to vietnam. itsaid it is not -- it said is

this is bloomberg. ♪ haidi: i am haidi stroud-watts in sydney.m ramy inocencio in new york, and you are watching "daybreak australia." we've got breaking news right now coming across the bloomberg terminal. numbers, first quarter net income is eight to $31.5 it $1.5 coming -- million. $831.5 million dollars. they will begin imposing 25% duties on an additional $16 billion of chinese goods in two weeks. for more, let's bring in reader iba, who joins us from austin, texas. it seems in the whole scheme of things, $250 billion, that the $16 billion -- we knew it was coming. to what extent does this move the needle? >> the $16 billion was completely expected, part of the tariff package under the section 301 terrace that were very focused on china's made in 2020 campaign, so focused on a lot of chinese industrial goods. the white house has been clear it would follow through with that, so this was just a matter of timing. the bigger question of course is with the white house formalizing its threat to impose 25%, up ariffs andt threatening to raise that

haidi: and i'm haidi in sydney.gentina and turkey raised the scrutiny on other emerging markets with current account deficits. the weakest level since 1998 or of course the asian financial risis. sinha.ith us is adarsh i want to throw up this chart. we talk about the fact that these are idiosyncratic stories in turkey, in argentina, in south africa. and notwithstanding the fact that the peso isn't even in the emerging market's currency index, we're starting to see the correlation getting higher. in the top panel you have peso-dollar there as well as the index there in white. you can see that starting to close together. is there a sense that at least in the short term we are still going to see sentiment-driven contagion and you can't completely close off these specific emerging market risks? >> absolutely, in my opinion. there are these stories everywhere but i think there are two things to keep in mind. one is positioning. e.m. investors invest across a range of markets. if one or two markets are selling off in a bi

haidi?aidi: president trump says the post nafta trade deal is on, washington sticking to a strict friday deadline for the trade agreement with canada, and the president says he is optimistic. president trump: canada really wants to make the deal, and i think it will be good for them if they do. haidi: let's bring in our reporter who covers this. this possible this can be done by friday? have seen positive news from both sides, with prime minister trudeau saying there may be something possible, something similar coming from his foreign, as well as president trump, that there are a few difficult issues to work out, and three days is very little time by conventional standards to try to deal with it. ramy: all right, so with regard to what might be happening after this, we are looking at friday, but there are still some stumbling blocks. eric, walk us through this. yes, friday, that is for the u.s. trade representative to send a letter to congress, letting them know 90 days ahead he intends and

haidi: and i'm haidi in sydney. the u.s.an will keep up high-level dialogues in washington on thursday with tariffs likely to be high on the agenda. colder.us now is kent former special adviser to the u.s. ambassador to japan. as wein this environment see this ratcheting up of each step toward heightened trade wars between washington and beijing, anything is really on the table. are you managing expectations at this point? primarily, this is a matter of leverage in relation to ban. there are things on the investment side that would be attractive for the u.s.. you were mentioning energy a few minutes ago. are not so much band but japanese support for investments that will increase u.s. exports elsewhere in the region, vietnam, india, further afield, i think there is a lot of things the u.s. has a lot on the table. i would say mainly is leverage. the main target is china. to get japanese cooperation there and politically, there are areas where we already have tariffs on. steel, autos are big-ticket item , the threat of various

haidi: medical -- like bangkok. haidi: and medical tourism?cted to have almost 40 million people. the thing is, 40 million tourists coming in, a lot of those are specifically coming for medical services. has become a little's famous for plastic surgery but people are coming for general services, it dental care, teeth implants, they comfort hip replacements, that is a tremendous area of growth and time and has been doing that for more than 20 years. now it is becoming more and more sophisticated. haidi: in terms of this particular outcome of a company, what is it specializing in? what are the products we are talking about? lee: it is pretty diverse. i think that is one of their becausees with bangkok they have at least six hospital brands and with each -- within .ach brand they have sub brands they will have bangkok hospital group that has 21 hospitals. ian eightwill have that got it started as a nursing home. and they have wellness centers and they are targeting anti-aging and wellness. aspect of, each medical care, they are sort of getting in

this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." i am haidi stroud-watts in sydney. rishaad salamat in hong kong. some stocks moving the market. let's look at one down 2.6%. earnings coming through. , little problem, down by 2.1%. i want to talk about this one. having a large loss, taking its toll. the stock losing 15% at the moment. insurance, a chinese insurer. profitability in its life insurance operations, and that is lifting the equity in hong kong. money comingthat out of his insurance operations, the weakest in six years. it all highlights the risk of concentrating on one market. hief strategist said that is perhaps helping the share price, but he is refusing to comment on this possible deal to acquire prudential's asian operations. yes, we operate in china, but have 33 different businesses. 10 of those businesses are technology. we are very satisfied with the thelt, because in q1, renminbi fell because of new that atons, but we said the time. what is also important to stress is that value is only important that it drives are value. a life return on value on a

haidi. haidi: let's talk more about trade.ant to bring in the global strategies founder and a bloomberg columnist. great to have you. really just kind of taking a look at this trade deficit. a u.s. china trade balance. the big picture. weigh less than zero as we see. we see this tit for tat. it will come to a point where like for like is not possible due to the nature of the trading relationship and the nature of the chinese economy compared to the u.s.. where do we go from here? >> that's a very good point, haidi. china have a huge trade surplus with the united states, it appears that in 2018, the trade surplus is increasing. very many u.s. importers have accelerated imports from china ahead of the tariffs. this battle is not going to get less. it is only going to increase. what chemchina do about it? they had to -- what can china do about it? they have done two things. they imposed tariffs again. the initial $34 billion that the u.s. imposed on reacted within a minute to react with their own u.s. products. president trump sp

haidi: thank you.he trump administration has confirmed it is weighing 25% on the proposed tariffs of $200 billion of chinese goods from the previously planned 10%. let's get more from our congress editor. how much time is left to get talks restarted between the u.s. and china, and they said they are open to negotiations? joe: this is designed to put more pressure on china and restart negotiation's but there is no sign of that happening. they are talking about talking and china's reaction earlier in the day after the first reports from bloomberg about 25% tariffs was to say that china is prepared to retaliate in kind, and it will not be blackmailed or pressured into talks. the trump administration sees -- shows no signs of backing down on its demands for china to open up its markets and give u.s. companies a fair shake on intellectual property. who or what would get hit with these new tariffs? joe: this would be the thing that would be felt more in china but also the u.s. because it would hit consumer p

haidi: i'm haidi stroud-watts in sydney. you are watching "daybreak australia."d driven by strong economic growth in asia, and the ongoing power coal powered plants across the region. the ceo of whitehaven says coal still has a place, despite the push toward renewables. >> you have no choice but to do something with coal. if anyone continues to believe we can go on the way we are going, they are living in a world that's very different from the world our customers live in. elevated prices hurt everyone, not just households, industry as well. you have to be able to provide reliable, affordable power on a 24-hour basis, and if you can't do that with renewables, with any form of backup we have available to us. gas coal, nuclear if you have it, depending on the jurisdiction you are in, has a role. >> what is the growth market? >> taiwan has been the biggest. if i'm surprised by any market, that is the most. the quality specifications they are demanding have been increasing, stepping ever closer to the japanese standard. that has surprised me. that market has overtaken

haidi.ging markets valuation chart take has, if you have a bit of a stomach for us, there is a plethora of opportunities, the caveat being an environment of buyer beware. you can look at all the recent charts that rishaad and i have been showing here on bloomberg markets. 20 more to come. this is bloomberg. ♪ -- plenty more to come. this is bloomberg. ♪

this is bloomberg. ♪ haidi: i am haidi strivers in sydney.amy: you are watching daybreak australia. equity slumped. on thursday after president trump was said to move ahead with a plan to impose $200 billion in tariffs on china as soon as next week. our global in strategy president and founder and bloomberg opinion columnist. a lot of ands there. i think we can also call you friend. >> that is very -- i like that. ramy: sounds good. before we get into all that, of course, we just heard our editor in chief talk about his interview with donald trump. the most interesting thing for a global audiences is that donald trump said he will pull out of the wto if things got bad. what your thoughts on this? >> i think it is very serious. because even more important than the $200 billion tariffs he would impose on china as early cameext week, the wto into being into 1994 at the behest of the united states. we brought china into it in 2001, which essentially brought the country into the global trading system, the global economy. not only the chinese but w

haidi: how is the re-balancing going?a strong narrative in terms of what the australian economy is reliant on. a resources-reliant economy. >> resources will always be important for australia, but the re-balancing has worked well, and we have seen this has been offset by rising infrastructure spending, rising resource exports, residential construction boom, and we are seeing non-mining capex moving ahead at a reasonable rate. haidi: if your glass is half-full, you could see the trade tensions could work out positively for the australian economy in terms of diverting the trade flows to australia from the u.s. are you think this is a big headwind? >> i think this is. thefocus is on trade, but demand behind the trade will go away. third-party countries like australia could pick up a bit, but overall, i think nobody wins in a trade war. all the research and history shows that clearly. haidi: has it surprise you, the correlation between the aussie dollar and the yuan? >> there has been a long-running current -- correlation. th

this is bloomberg. ♪ haidi: i'm haidi stroud-watts in sydney.n: and i'm kathleen hays in new york here in india on track to hold on to its title as one of the world's fastest-growing economies with the international monetary fund expecting expansion of more than 7% through next march. the imf chief told bloomberg why he describes the economy as an elephant that is starting to run. >> india is as we say an elephant starting to run in the sense that it has benefited from important policies focus on macroeconomic stability and structural reform. if we look to the indian economy, it had suffered from to transitory shocks in roughly the last 24 months. first was demonetization and second was implementation of the goods and services tax. we think is actually a very important positive structural reform. we see the economy accelerating from 6.7% to 7.3% in the current fiscal year and accelerating further in the next fiscal year. that is what we say the elephant is starting to run. ensure that the momentum is sustained and if possible, to accelerate furt

haidi. haidi: thank you so much for that. some of the movers.e a look at what some of the stories trending across the bloomberg universe on the bloomberg terminal to subscribers are reading about why banks are giving tellers razors instead of firing them all. takes plain how fashion companies are turning to southeast asia for production with tariffs hitting chinese made goods. on tic toc, a feature on generation zed. on outnumbering millennials. you can check out those stories trending online. this is bloomberg. ♪ rishaad: we are back. this is bloomberg markets. i'm rishaad salamat. haidi: let's get you a quick check of the latest business headlines. we're seeing mixed messages surrounded developer china ever to jump,'s continue the board has announced a special dividend. skepticism about the company's debt business model is driving although shorts. rivald: ever grande china bank reporting at what he 5% gain in the first half off the back of unstoppable home sales. earnings on the way up to $1.3 billion from $1 billion a year ago. core profits a

>> thanks, haidi. the indian rupee hit a new low as the crisis in turkey ripples through currencies. it fell the most since swept role as theuing its worst performer in asia. the chances of the reserve bank keeping rates on a hold after back-to-back hikes. bad loans of chinese banks rising more than $26 billion to almost $285 billion. that's the biggest quarrel jump ever recorded in data going back a decade. loans represent 1.8% of total advances. china's crackdown on shadow banking has made it harder for weaker borrowers to refinance. the forecast for u.s. growth slightly diminished. the c.b.o. says the -- sees the comply expanding 1.1% through 2018. it says the growth will east next year on slower investments and government buying. at least six are feared dead and thousands more displaced as the tropical storm hit parts of manila. the storm hit the river to burst its banks. e local counsel is declaring an emergency for at least 20,000. global news 24 hours a day on summers. essica this is bloomberg.

haidi: and i am haidi stroud-watts in sydney. they are aussie may fall to a two-year low as political turmoil threatens paralysis. this is "bloomberg markets: asia." ♪ rishaad: out of the gate, singapore on a tear. the nikkei 225 showing modest gains. , but thats resurgence makes resources cheaper for the japanese. there you have it. the straight times down .4%. a lot going on in australia. about theare talking u.s. and china keeping communication open. talking will continue. talkslot of constructive over the past few days. it is headed to some resolution in an hour or so. that petition does have the requisite number of signatures and we may be looking at a change in the prime minister ship in about an hour. we are watching the impact, the aussie dollar taking it on the chin. investors looking ahead to jerome powell's speech at jackson hole. china says trade talks were constructive and they will keep communication open, despite meetings with no major progress we know of. hitlatest round of tariffs thursday, taking the total value

haidi: thank you. get you a quick update on markets as the thursday morning situation gets underway. just getting underway. keeping rates on hold. bit when ittle comes to kiwi stocks but the decline we will talk about in just a moment. forlly in the trade numbers the next leg up. let's get more on what we should be watching as trading gets underway in asia. you're watching the kiwi dollar. >> reasonably big move for the kiwi. a lot of meetings where there hasn't been much action. they have kept rates on hold but the key message was that moving back of the first rate hike expectation. almost a year after predicting back in may. i think the things that are stacking up against the new zealand economy are putting serious pressure on the kiwi and that has been bringing in further shorts into the trade. people putting further pressure on it. talking about global inflation pressure starting to rise. we are hearing about a lot more and the inflationary risks. the market perhaps isn't pricing yet. certainly thi

haidi: thanks for that.ark carney will not rule out raising interest rates before he leaves the bank of england next june though he and i both -- he acknowledges brexit could change everything. kathleen hays here with more on the boe rate hike. what about brexit? the brexit torpedoes, full speed ahead. this rate hike was expected. one thing unexpected, unanimous vote, the whole monetary policy committee on board with this. in the face of all the uncertainty, why is mark carney, why is his team determined to move rates higher? let's go to the library and look at one of our charts. you will see the bank of england's key rate on the bottom. it has been moved it has been moved down to 0.75%. the goal line is headline inflation. look how much it has come down, 2.4%. the core rate is below 2% but for the bank of england, this is too much inflation, too much chance. if they let it stay high, it will create inflation. that is why they decided to move. let's listen to why mark carney told bloomberg television earlier

haidi: that is it, isn't it? the window for structural reforms was already small and the impact was already going to likeinful, and it feels with the trade war and the slowdown, that is pretty much a story that is over, right? robert: well, it certainly has been kicked into the long grass. it is one of those cases where you make hay where this -- while the sun is shining and the sun is no longer shining. it has been confined to the shelf until better times and most sensible policies can be read implemented with more vigor. spoke earlier about china's propensity to throw money at the problem. they can do that, right? have belt and road, assets, things in place to potentially offset the impact of a trade war. kind of expansion of trade relationships outside the u.s. make up for that at all? i think that is an interesting point. does. long run, it it is easy arithmetic. there is more of the rest of the world than the united states, if you know what i mean. the united states is still a big player globally, but not mo

haidi: cautious optimism. this chart is pretty simple in correlation growing to record high correlations when it comes to what the yuan is doing. the impact in the correlation with global stocks. you can see the correlation play out for the commodities index and other fx, which isn't pictured on the chart. in terms of sentiment in asia when it comes to emerging of ats, is the yuan more -- than the u.s. dollar? laura: overall, the moves on the yuan have been certainly a bit destabilizing. it has been a very big move. overall for us, the u.s. dollar remains the key funder and we have to remember that for all parts of the globe but certainly did she she she we have seen on the -- depreciation we have seen on the chinese currency the last month has caused a lot of issues in terms of the outlook for the dollar in the near term. what happens on dollar china is very important now. it looked like we would stabilize around the 680 level. it appeared a 690 was too much and we saw the authorities in some sense step in th

this is bloomberg. ♪ is is bloomberg. ♪ ♪ haidi: i'm haidi in sydney.'m remy inocencio a new yorker you are watching "daybreak: australia." -- gutting policy is a tricky business for sure. that is not stopping fed chair jay powell from flagging two more rate hikes this year. our global economics and policy editor kathleen hays is here now. kathleen, it seems like mr. powell is not going to be byerred by inversion or rising trade tensions could kathleen: certainly not over uncertainty for longtime used monetary indicators. which he was putting in this great metaphor for, you can guiding your boat by the stars, what about guiding it by policy stars? he also started out i saying employee or -- employment is at a 20 year low. no sense he is worried about the economy that would deter him from rate hikes. then he gets into this thing about past errors in the system of guiding by the stars. not sure what the nature of unemployment is he says navigating by stars is sometimes straightforward. he tried to guide policy by the stars when the stars are changing. he

haidi: michael, i have to ask.tionship with iceberg research and do they have a case in their separate class-action? michael: i really have no relationship with iceberg. a lot of the problems with noble three or four years before iceberg wrote them when i was reviewing other commodity traders and also looking at noble. at that time, the cancer was a very small spot on the x-ray. out, ieberg came reviewed my materials and saw it was full-blown stage for cancer -- stage four cancer. we both saw the same thing from an independent perspective. i don't really know much about what his motivation is, but i highly respect the work he has done, the courage he has shown. he has been physically threatened by people. he has been taken to court. is simply a reaction, but never answering the fundamental russians that he or i -- questions that he or i raised. what does this say about singapore and corporate governance, and regulators there? does this make noble an anomaly in that sense? michael: well, i certainly hope it is an an

haidi: i like both of those charts. to go out and see if i can find a cny necklace as well. thank you so much. rishaad: what about an cnh one? haidi: if you can steal one, all the better. you can get involved with this. you can browse the recent charts featured on bloomberg tv. save charts for your future reference. ingles upme, david with more markets. this is bloomberg. ♪ xfinity mobile is a new wireless network designed to save you money. even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that has the most wifi hotspots where you need them and the best 4g lte everywhere else. saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. emily: i'm emily chang in san francisco. this is "bloomberg technology." tencent suffers its first profit as

haidi.aidi fish jenna, thank you. let us get to our top story. policy makers meeting in a jackson hole for the fed's greet.meet and the biggest risk to the global economy, trade i am sure, will get a mention. kathleen hays is there for bloomberg. kathleen? kathleen: haidi, thank you very much. i am joined by the governor of the reserve bank, previously serving as deputy governor. rbnz, hey years at us sovereign wealth fund, and he's here to talk about what is going on a jackson hole. , and of course what is going on at rbnz. one of the things that we will from jay powell tomorrow, is the economic outlook. what is your assessment of the global economy? would it support growth in new zealand, or is it more to the downside. >> we have been optimistic at, i should say. growth remains strong, despite all the headlines around trade wars, but they would have to become real and very vicious, because it can affect new zealand significantly. a lot of our products are either directly consumed or going

haidi: great to see you. everyrd from almost automaker head.nerable does the industry right now? trade tensions are definitely a challenge. china is the biggest market. the u.s. is a counterweight. there is a tussle going on between them for duties, taxes and everything. that is a challenge. otherwise, the industry is looking at how to reduce emissions and how to include safety -- increase safety. these tariffs are implemented and stick or are worsened, as we look at this ont $200 billion charge chinese goods been proposed, where do you see automakers? investments, as we heard the volkswagen ceo saying, the investments are made for about three to four decades. that is the biggest challenge. is the uncertainty in taxes, duties, policies of word, government support. what slows down his investment. the impact may not be immediate. impactl definitely have on to sectors. number one is the investment that goes into the countries. secondly, the imported goods. rishaad: what about the supply chain? the supply chain has long-term contacts -- contracts.

haidi: thanks as always. the stories you need to know to get your day going on today's edition of daybreak. bloomberg subscribers can get it on the terminal or the app. you can also customize it to only get the news on industries and assets you care about. this is bloomberg. ♪ ramy: welcome back. let's do a quick check of the latest is nest headlines. mitsubishi profit rose 9% in the first quarter. .hat's upholding gains trading climbed to 2.8 billion dollars through june. the bank is keeping its full-year target of $7.5 billion. gm rivals under pressure. a stimulus program in the margins. higher earnings at its flagship company in the first half, giving him a positive start after taking over for his famous father. net earnings up 13% in 16 months. underlying profit increased when he percent to $1.5 billion u.s. oil anddia's biggest gas producers on net income rise 58 percent, reaching a four-year high. topped $895 million through june. below the average of $975 million expected in the bloomberg survey. that

haidi: a spotlight on the yuan.nd analyst tells us how far chinese policymakers could go in order to stem the currency's decline. this is bloomberg. ♪ ♪ haidi: this is bloomberg markets: asia. yuan on a run of eight weekly declines, the longest losing streak. our economist and strategist has more. perhaps a line in the sand . with the new measures introduced by regulators and the pboc, that is making it more expensive to shore up the yuan. >> the key message is that the pboc doesn't want continued quick depreciation of its currency, but it doesn't mean that appreciation will -- the depreciation will last. a few years ago, we had a few months of recovery for -- followed by quarters of decline. the same thing could happen now. if the straight -- if the trade war escalates, maybe the pc -- the pboc will allow it to depreciate. they haven't said they would be -- rishaad: more or less. >> the dramatic shift if we go about seven, it would be [indiscernible] will see today may not last permanently. rishaad: is it also to s

haidi: thank you for that.et's get you to first word news with jeffrey sommers. >> president trump has repeated his claim that the eu and china manipulate their currency. he told lawyers that beijing artificially lowers levels. in a wide-ranging interview, he also said he had no timeframe for a diplomatic standoff with turkey and that it is dangerous to have companies like twitter and facebook regulating themselves. significant second-quarter slowdown in the chinese economy after analyzing a wide range of data. the manager of access equities told bloomberg the pullback was more based on alternative data then the government's official pmi reading. the data now shows some stabilization. overall, fundamentals seem to be not bad. sentiment, on the other hand, certainly has been quite negative. there is green at the beginning of august. >> water has begun receding after the worst floods in a century, but some areas remain an accessible to rescue teams and nearly one million people are in refugee camps. three and 41

haidi? haidi: thank you so much. joining us now is the ceo and founder of -- let's get your report.ere talking about that note from goldman sachs sing the spillover effect from the turkey incident will be limited and to the extent that there is negative spillover, they should be opportunistic. you have to be pretty brave to be waiting in right now. markets,k for emerging the tech we want see today but the impact will be much more. it will ease the russians and it will be much less for asia. in particular asia. -- goldmann sachs sachs report as indicated there is the potential for -- but probably not today depending on how these things play out over the week. haidi: i want to talk more about the emerging markets, and fx in particular. the south african rand has jumped as much as 10%. index is atg-dollar this year's current high. i want to look at the fx volatility. within the g7 space it is pretty subdued. further does it have to go given that over the weekend return toing a strong haven behavior for the markets. are two tophere factors. -- two factors. flight to the u.s. dollar beca

haidi: president trump has defended his use of tariffs, saying playing hardball is my thing. this follows china's decision to outline an additional $60 billion with retaliatory tariffs. let's get now to beijing. trump is claiming to have the upper hand on china. we have a flurry of data coming out this week in terms of trade numbers. that should give an indication whether it is right or not. china data,eek for and as you say president trump coming out over the weekend with this rally in ohio but also a series of tweets to underscore his view tariffs and the actions

nejra: haidi, stay where you are.ll turn to south africa as well, and the rand led kleins yesterday, rebounding a test today, but declined yesterday after president trump turned his attention to africa, it tweeting about the nation cost rand the break -- nation's rand the great -- rand debate. sometimes, is the case for the markets overreact, and then the markets settle. quite frankly, we have seen a lot of volatility throughout the year am i not only in terms of south africa, but eme's. so i think volatility is just part of our lives. >> how about the potential impact on the economy, which is something you have the water carefully? francois: this particular issue is currently being addressed, and it is underway, and i think it is very difficult to judge the particular outcome. south africaw from is we have the capacity to deal with fairly complex social issues. case in point is our fairly peaceful political transition in 1994. and i do believe that this particular issue will also be conducive to social harmony and en

haidi: i'm haidi stroud.ines are in focus amid indications earnings are under pressure. they may have to rein in expansion. this is "bloomberg markets: asia ." credit start to hear a little growling from the bears in this market ride. we had record highs in the u.s., the nasdaq and s&p 500 closing above 2900 for the first time but in asia, we are seeing the sentiment turn. just can't hang on to any sustained recovery rally. stephen: yeah, it was a two-minute story, wasn't it? the open, 120 seconds and here we are. session lows in hong kong. close to session lows on the chinese. it seems during the rallies, sentiment is still shaken.

haidi: in sydney, i am haidi stride. 16 months despite posting record billss, soaring steel send investorse. this is "bloomberg markets: asia ." speaking of the departure date, it looks like the australian prime minister has been increasingly pointed to the exit. we have had a flurry of senior ministers tendering their resignations. the first leadership challenge on tuesday of this week, wanting to go a second time, pressing on the prime minister to call on a second vote. combination oft new leadership is proposed for australia, but a lot of chaos politically, not limited for once to washington. rishaad: absolutely, and something we have one eye on, at least. cohen and trump trauma continues, but the federal reserve coming out with its minutes.

haidi: it's in the i'm haidi , lun.ill overshadow the worries about turkey. this is "bloomberg markets: asia." ♪

. ♪ haidi: u.s.heir worst day in seven week as 10 cent and copper slumps into a market. ramy: strong retail sales did little to help as the s&p 500 fell for the fifth time in six days. macy's tumbled and that's despite beating forecasts. haidi: the dollar reeling from the trade war. ramy: and tesla declines for a second day on reports of a

haidi: the trump administration confirms it is weighing tariffs on chinese goods.slumps in

haidi: as you know, this has been called the lucky country.is an argument that a lot been dueic success has to the good fortune as opposed to good policymaking or good management. to benefitas managed from the rise of china and the corresponding demand for commodities and services and tourismthem inflows -- inflows. it is an example of australia's economic success. the problem with the chinese economy slowing down, being exposed to a potential trade war between the u.s. and china, there is an urgent need to find new drivers of growth. malcolm turnbull has been arguing against credit. despite good conditions, when it comes to many indicators, we still have the situation that many developed economies are facing, which is wage growth being very slow. that has given rise to that sense of populism that has given rise to those that are pressuring him at the moment. yvonne: a strong economy not really helping. thank you. one of the world's most anticipated offerings has been put on hold. saudi aramco is focusing on buying a strategic stake in chemica

haidi: criminal charges released at the inquiry to australia's finance ministry.di's sovereign wealth fund may raise its investment and there is a lawsuit.

haidi: the offshore yuan strengthened as the pboc indicates it will continue to offer support. hole. shrugging it off and signals no change in rate policy. struggling noble puts its rescue plan on the line. shares suspended in singa

haidi: part of that, you could argue is the structure of where the economy is at the moment.much an economy driven by command and commodities. this rebalancing towards services. chinaou see a slowdown in , that is going to weigh on it. probably one of the most vulnerable commodities. some of the other issues like stagnant wage growth is kind of sticky. there is a sense that -- they are stuck between a rock and a hard place. we have gone 27 years without a recession. some critics would say that is due to good luck rather than good policy. it is almost impossible to make long-term policy in australia giving this revolving door of leadership. if we did have a successor today, that would be the sixth prime minister in less than a decade. you spoke about the energy policy that was really important. malcolm turnbull has had to retreat from his energy policy when it comes to the emissions target because of the pressure being put on him to support the coal industry as opposed to alternative new energy. ramy: for now, we will be talking -- we will be calling mr. turnbull prime ministe

haidi: it could be make or break for us trillion's energy fix.samsung launches a weapon in the