haidi: and i'm haidi stroud-watts in sydney.w $70 a barrel for a fourth straight session as saudi arabia backs away from using its oil wealth while u.s. inventories expand at the fastest in more than 18 months. gavin, great to have you here with us. the geopolitical situation between washington and riyadh at the moment, do you think it is going to meaningfully impact oil? >> it is a great unknown. markets typically do not like uncertainty. haidi: we are getting used to unknowns when it comes to policy. >> we sure are, particularly in 2018. trade and tariffs and that sort of thing. the other great unknown is iran as well. talking about two of the biggest producers in the world. my view on oil prices is that we are likely to see stability between 70 to $75 a barrel, perhaps as high as $80. the big issue is that when the oil price rises, we say it provides a financial incentive for u.s. shale production. states typically is quite a significant swing producer. that tends to put an upside cap on prices. if you are a betting man, ther

this is bloomberg. ♪ haidi: good morning, i am haidi stroud-watts.our away from the open. shery: i am shery ahn in new york. haslinda: i am sophie -- kamaruddin. sophie welcome to daybreak asia. haidi: our top stories, asia-pacific stocks for a 5th street decline after wall street fell to a three-week low, oil dropping the most in three weeks.

haidi: i am haidi. shery: i am shery.erkel's decision to enter political career -- and her political career in 2021 has caused panic. who may take over? >> the decision will be made in early december when the party .athers in hamburg > some people who have stepped forward is a close angela merkel ally. she managed to get this job -- this would allow angela merkel to hang on longer as chancellor. two rivals have stepped forward. -- one isval frederick. rivals.them are seen as should one of them when that position, it will be much more difficult for angela merkel to hang on as chancellor. that is bloomberg news, berlin. >>'s reaction to the surprise news -- here is some of the reaction to the surprise news in germany. >> she had a big role in being a stabilizing role in europe. the markets will react. >> this is why it is a belief relief thatis -- a merkel is in the job still. this is a relief. the distribution of outcomes. risk appreciation will be slightly higher in europe. >> one of the other reasons why the bond yields

haidi? haidi: soph, thank you so much for that.on what we should be watching when trade gets underway in asia. chinese markets, shut for the golden week holidays, but the bears are back in hong kong. >> we saw a tough day yesterday in the hong kong equity market. we have fallen into the bear market with a confluence of things going on, all working against british investors in hong kong. property, property developers have been the story in recent weeks. yesterday was very broad-based. that hong kong stocks have been underperforming the rest of the world for some six months now, which is very unusual to see that long, protracted underperformance. and the higher interest rates there, clearly pegged to what's happening with higher u.s. rates, starting to have a bit of an impact. some people were talking about the weak manufacturing print we got out of china over the weekend. the market was closed on monday, of course. yesterday was the first day that traders got back into things. the bears do seem to have the upper hand at the moment.

haidi: i'm haidi stroud-watts in sydney.sury department has advised secretary steven mnuchin that china is not manipulating the yuan. if that is the view accepted, it would be a new escalation in the trade war and a relief in the markets. joining me now is julia wang. great to have you. i want to start off with a conversation we had earlier with jacob frankel, j.p. morgan chase is international chairman. he took a pragmatic view as to whether the issue would be added to the plethora of issues that washington now takes with beijing. u.s. dealing with china has had so many issues, especially in the trade area. i really think the u.s., together with europe, should join hands and approach china as a group and deal with the grievances about property rights it -- intellectual property rights. once you do this, it is a much more focused issue. feel thatna doesn't deposition of a currency manipulator. is there anything that has been intervening to try to support that? does it mean it will not happen? julia: based on current criteria

alix: welcome to daybreak australiaalix: haidi:. -- haidi: welcome to daybreak australia. ramy: we are counting down to asia's major market opens. haidi: here are the top stories we are covering in the next hour. saudi accounts of the killing of the journalist spark widespread skepticism. pace will bee tested this week as the strength of the sass cap -- tax cut economy will be released. and losing an election along with parliamentary majority in sydney. ramy: let's get a quick reminder of how stocks ended the close. you can see mixed definitely is the word. s&p 500 a hair's breadth in the negative. dow jones raising a quarter of a percentage. nasdaq was the worst down half a percent. looking at these, the s&p and the dow, they ended the week in the positive, ever so slightly, breaking three weeks of false. the nasdaq was down three weeks in a row. a couple headaches i have been marking. concern about profit margins possibly taking a hit because of u.s.-china trade war, and then there are headaches with regard to the fed rate hikes, what they will do in december. what they

haidi? haidi: jenna, thank you. had come australia's top-performing superfund chief investment officer joins us to talk strategy. shery: but up next, much more on tech after the short-lived rally. we take you through amazon and alphabets disappointing numbers. this is bloomberg. ♪ ♪ haidi: we are counting down to the start of trading this friday morning here in sydney. features looking -- we are seeing a bit of life trickling into the market. not quite as bad as the bear market we have seen elsewhere, but we are looking at a bit of a pop in a sydney futures, the biggest rally since early july. and indicated upside of 1% one trading proper begins this friday? shery: about time, given the asx 200 is an oversold territory, the most since 2013 or so. i am shery and in new york. haidi: and i am haidi stroud-watts in sydney, you are watching "daybreak: australia." investors were not convinced by amazon numbers, after missed revenue estimates. remy innocence year devil with the details. amazon.tart off with the revenue sid

haidi: i am haidi stroud-watts in sydney.re watching "daybreak asia." let's get you first word news, with jessica summers. shery: turkey says investigators found evidence in the killing of two mocon -- jamal k hashogghi. president trump said crown prince mohammed assured him he knew nothing about his fate, and said it would be bad if the prince or king salman was involved. stocks were volatile again as mike pompeo arrived in reality to seek answers to the mystery. closed 1% up after punching 4% at the open. president trump says the rush to blame riyadh is another example of being held guilty until proven innocent. chinese holdings of u.s. treasuries fall for a third consecutive month in august, as it struggles with a weakening yuan. beijing's ownership of bonds, bills and notes was $1.16 trillion, down from 1.1 7 trillion -- $1.17 trillion in july. tokyo decreased holdings fractionally in august from a month earlier. japan has seen a fall in tourism numbers, for the first time in at least five years. arrivals fell last month

haidi: i'm haidi stroud-watts in sydney.express beats third expectations from strong gains from attempts to attract smaller businesses. they boosted the forecast for trimmed the fees to attract more retailers to its network. discount revenue as a measure of ees charged to her chants surged topping analysts estimates. blackstone continues to attract money, $24 billion in helpingtol last quarter it to beat profit expectations 11% to $911 e rose million compared with $822 year earlier. blackstone is bucking the private equity fundraising to reach halfopes a trillion dollars in assets early next year. haidi: a slowdown in smartphone chipmaker urting the and reported the decline in forecast ter and fourth quarter revenues below estimates. billion this $9.5 quarter lagging the $9.55 billion average estimate. it foreseize a possible spending $12 next year to as much as billion. shery: facebook's new war room, of its effort r to fight interference and remove from its platforms. bloomberg technology host emily cybersecurity head and

haidi: i am haidi's -- haidi stroud-watts.ion on north korea, this visit from mike pompeo to pyongyang seeming to yield more results than previous business -- visits. a professor who specializes on north korea, he joins us from pusan. -- busan. we have a timeline being thrown out, the president says he doesn't want to be limited to a deadline. are we making progress since the highly hyped singapore summit? >> we are not really. this meeting didn't bring much either. the invitation of american inspectors to check out the dismantled test site was hardly a significant confession. what you referred to, this relaxation of urgency in regard a bad sign.e is that was confirmed by pompeo saying we should get ready for a long haul. the same trump administration that came to power promising a end is now-- no great urgency. americans believe sanctions will force north koreans to comply, but i think they are wrong. the sanctions are being significantly undermined, not only by russia and china but america's allies in south korea. haidi: thi

haidi: i am haidi stroud-watts. to buy an australian business management software company for $1.6 billion u.s. it offers $.70 a share. it was 24% premium in the closing price friday. they previously bought 18% of the company from baincapital. shery: the airbus ordered will meet to name a new ceo. the head of commercial aircraft is to succeed the outgoing person, having long been seen as the heir apparent. the man will leave in december and step down next april. he held the position at the airbus helicopters division before joining preshow. -- peugeot. haidi: daimler leaving -- they told the board they are not looking to extend their current appointment but it is not clear why he is leaving. thateparture follows news the veteran is stepping down in the biggest corporate overhaul in a decade. another story we are following, the most well-known prankster of the modern art world may have pulled off his biggest stunt yet. in a video posted to instagram, presumably by the artist, you can see his girl with a balloon fly t

haidi: i am haidi stroud-watts.olls in brazil closed moments ago with one putting the right-wing candidate ahead with 56% so far. let's look at the implications and the broader look at emerging markets as we kick off another difficult start to the trading week. we go to the federated investors president joining us in pittsburgh. great to have you. he is the manager of the debt fund, among the top 5% in its class over the past month. i will pause for a moment and get you some breaking news. he has won the brazilian election. we will be waiting for more sort of official confirmation of won thet he has elections. is thelooking at question now the extent of his victory as opposed to whether this is, whether he has one or not? not for tort he has been light in terms of reform, pension reform and privatization, but the market has been kind of assigning its own suggestions or expectations on this candidate. light on then details. seems the electorate wanted the uncertainty that he may bring change versus the certainty the

haidi: i am haidi stroud-watts. china has issued a warning to australia.hey say australia should not be led by the nose by washington. let's look at the difficult situation canberra finds itself in. the former premier of the state of victoria, john. we were coming through the new nafta agreement between the u.s., mexico, and canada. there are specific laws that to prevent these trading partners from striking up -- with china. do you think they will need to choose between the traditional alliance and its biggest trading partner? john: there are certainly some changes in the relationship and you often see this when you get this shift in global economic power. we are seeing that at the moment with the united states to china, but from australia's perspective, we saw in the free trade agreement with china two years ago, we have access to that market. haidi: do you believe that relations between beijing and canberra have been ever so strained lately because of these geopolitical concerns, activities in the south china sea, and the trade war between washington an

haidi: a very good morning. i am haidi stroud-watts in sydney, where australian markets just opened for trade. shery: good evening. i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: our top stories this tuesday, asia-pacific markets look set for a muted open after tech dragged wall street again. the dollar hit a two week low. theers are looking ahead to latest inflation numbers. that data should indicate fallout from the trade war. president trump floats the idea of "rogue killers," as mike pompeo seeks answers from saudi arabia. shery: let's get a quick check of markets from the week in the u.s. markets under pressure. the dow fell .4%. the s&p 500 extended the biggest decline last week since march. falling .6%. utilities fences like and real estate gaining ground while tech lead the losses with the nasdaq falling .8%. the energy sector was one big on the s&p 500aw with the s&p gaining the last two sessions are now falling .2%. let's see how this will play into asia

haidi?athery, taking a the latest story and support from chinese authorities for the broader markets, the pboc will support bond financing if their funding strains. this comes as top chinese thecials seek to restore chinese economy. what is the significance of this move? >> it is certainly the latest a courtin what has been may did the economy. top officials are talking of confidence, we have had a string of measures to designed to shore up sentiments. we have a particular move that is a two-pronged approach suggesting they want to ease the way for private sector companies to sell bonds or financing. it is the private sector that is probably suffering the most. felt thethe ones who squeeze. this would suggest policymakers are cognizant of the problems the economy is pacing. while they preached they are remaining -- facing. while they preached they are remaining confidence, they are willing to take the steps required to ensure those parts of the economy that need the cash will get the cash. h

haidi: number two u.s. targeting a share sell in march or april and evaluating underwriters is the next step. yft, being the first to move, may help. one dealat underwrite cannot work for a direct competitor. that is it for daybreak australia. we are just minutes away from the open in australia. let's get an update that how we are tracking asian markets. downside, with kiwi stocks trading pretty much flat. a little bit of an upside when it comes to games seen in the aussie dollar and the kiwi. expectations of more china stimulus to come. a little bit of downside as we head into the open. shery: in the next hour, we will be speaking to stephen of pine bridge investment. he thinks bond risks are elevated right now. the risks of higher yields and elevated market cycles. this is bloomberg. ♪ australian markets have just opened to trade. shery: good evening from bloomberg's global headquarters in new york. inhie: i'm sophie kamaruddin kuala lumpur. welcome to "daybreak: asia." our top story this wednesday, asia-

haidi: i'm haidi stroud-watts in sydney.e watching "bloomberg daybreak: asia." let's get the first word needs from jenna dagenhart. the treasury said it will after its recent site. secretary steven mnuchin said he's particularly concerned a china's lack of transparency over the yuan fall. the report to the u.s. is disappointed that beijing doesn't disclose currency intervention. u.s. commerce secretary wilbur fragile up transatlantic trade truce under pressure right accusing e.u. of dragging its feet over pledges to open markets further. speaking in brussels, he saying --ne leader twitter has published millions of tweaks, images, and videos of thousands of gases says is based in russia and iran and or malicious. decided previously disclosed the illicit activity that goes back to 2016 but is now making the data public to encourage independent inquiries. big tex has been deciphered slow response to meddling in politics in the u.s. and elsewhere is allowing u.s. users to download a copy of data via a single online portal that w

haidi: and i'm haidi stroud-watts in sydney.et you the first word news now with jessica summers. confidencemeasure of returned to the markets as the u.s. and canada agreed to the new trade deals. is essentially a reworking of nafta. attention now moves to president trump's steel and aluminum tariffs, which are not part of usmca. the administration also says that is too soon to talk to china without evidence of real change. >> we are not going to hold back these tariffs for just promises. china needs to have real action. the president has said if china wants to put proposals on the table where they are willing to make meaningful differences and protect our technology and have fair and balanced trade, we will listen. but we are in no rush. jessica: italy's attempt to sell a new budget to the eurozone ended in failure. hoped toce minister win acceptance for substantial increase in the budget deficit, but won little backing. france said eu spending rules apply to everyone. economic commissioner said italy's plans almost certainly br

haidi: kathleen hays there. continue watching the italian situation with the prime minister there making those comments in an exclusive interview in rome. he spoke to us just before the european commission rejected his governments rule breaking budget. >> there is in any b plan. the deficit at 2.4 compared to gdp. we will expect ift we are ready to reduce necessary but there is in any plan b. , betting onamblers our kids future. we will discuss the data with the commissioners. willing to sit around the table and talk with them and to , of course they will change multiple measures. i have evidence that the spread is due to be -- i want to assure you that we feel very and we think the , thewill be our currency currency of my kid who is 11 years old and the currency of my grandchildren. shery: coming up, we continue to track the widening outrage over the khashoggi mercker. stephen cook joins us next. this is bloomberg. ♪ shery: welcome back. i'm shery ahn in new york. stroud-watts in sydney. you're watching "bloomb

haidi: i am haidi stroud-watts in sydney.day brought tentative signs that last week's selloff has rebounded. let's see how things are shaping up with a deputy portfolio manager. great to have you this monday morning, a fresh week. i want to start off with one chart that shows one aspect of what we saw last week. concerns over fed tightening results, obviously it way that is worse for asia and emerging markets in terms of volatility. this what really was driving last week's selloff? was that a dead cat at the end of the cycle because the fed is not going to stop? sonny: what the fed really looks like today, it sort of indicates they could continue tightening. what the bond market has priced in, a hike in december, sounds about right. there is perhaps more of a chance as we watched through the theorists, watch through fiscal stimulus, there is an increasing chance the fed they look to pause in 2019. growthks would only be surprising to the upside. but growth is coming off a peek, global growth as well, which is giving the fed m

haidi: thank you.week's tech meltdown pushed the dow and s&p 500 to the brink of a correction. we saw treasuries, gold seeking havens. we look at what lies ahead. the shaping up to be the worst month for stocks in about a decade. one person saying it was a treacherous environment. look at friday's selloff in the in faangnvested stocks. facebook, amazon, all of them taking a hit. the strategist said many of us saw the ups and downs at -- and at the end of the day got there head handed to them. gtv.an find our charts and you will see the tech stocks have been the worst since aang index16 and the f is down a quarter trillion a month. goldlked about bonds and spiking as a haven trade. oil has been down in a huge way. some traders who were veterans of the oil market are saying the risk averse nature and the fear trade in stocks and other asset classes is bleeding into the oil complex. they are seeing oil under a lot of pressure this week ahead. haidi: it is another big week for energy names. will this have

haidi: rish? happy friday.the relationship between shiznonzioe and xi jin ping. the pboc will be talking in abotu aut an hour's time. numbersimportant coming out of the u.s. and draghi and his comments with the european central bank meeting we had on thursday. to december for the decision on the future of the asset purchase program. haidi: see you soon. tepidmarkets are looking at the moment. ♪ rishaad: 9:00 a.m. in hong kong and shanghai. welcome to "bloomberg markets: china open." yvonne: markets try to in in the green. topixleading, but the facing of 5% slide. david: more than $6 trillion wiped from global equities. adversity,oser in president trump's trade war leads markets under pressure. ♪

haidi: more from malaysia up next.will hear how the government is gearing up for investments. ♪ haidi: market in sydney trading for about 30 minutes. up 0.25%. uninspired, aussie stocks have wiped out gains for the year, pretty close to a four-month low. haidi: 7:30 p.m. in new york, where markets closed down. s&p 500 now at the lowest in a month. we have seen some bargain-hunting in the tech sector, but really not enough to pull the benchmark higher. haidi: you are watching "daybreak: asia." let's get you the first word news with jessica summers. jessica: indonesia has a blunt message for both financial chiefs as they prepare to meet in bali, saying they must be more mindful of spillover effects on the emerging economies. indonesia's rupiah has weakened to 1998 lows. minister indrawati told bloomberg indonesia is being punished by doing the right thing in reforming its economy. >> we hope in the bali environment, that every policymaker from the u.s., euro, japan, emerging market countries, will have more activity to a

haidi: the u.s. trade dispute -- trade numbers are out in just a few hours. economists expect 6.6% gdp growth compared to year earlier. the headline doesn't tell the entire story. rob arnott is with us from newport beach, california. i want to start with s&p versus the shanghai composite chart. looking at the relative strength in terms of the ratio between the two, if you look at the levels we are hitting now, history will tell us over the past couple of decades this is where we see a bounce back for chinese stocks. do you think that's going to happen, given the selloff, if you look at the metro -- macro picture, when it comes to the trade war, has it materialized? has the depth of that selloff really surprised you? no, it hasn't surprised me at all. the nature of the trade tensions exacerbate any downside risk. the nature of bargains is very simple, bargains get there i didn't of inflicting pain -- by dint of inflicting pain and losses. there's no such thing as a bargain in the absence of pain and l

haidi: we have seen a number of u.s. struggle with the extent of the reaction to this, everything from germany and putting their arms sales on hold to what we are seeing in the u.s. you have president trump admitting now that the narrative from the saudis have been marked with section allies. at the same time, he says the crown prince, he maintains he is a strong person. will we see a stronger response from the white house? >> i don't think you will from the white house itself. this is the white house that has taken unilateral action on foreign policy. less than amount ago, the inmans and the saudis were damage control over her comments -- over comments from the lebanese minister. there is a lot of back-and-forth going on. the europeans are taking a stronger stance. congress is taking a strong are stance. go to the summit in riyadh last spring where trump said we are seeking partners, not perfection. i guarantee no one is listening more to that message than muhammad bin salman. he took that message and he ran with it. it

haidi: i am haidi stroud-watts in sydney.ominated by the decline we saw across tech, chief majors among the weakest with decline. treasury yields hitting multiyear highs again and gold seeing in advance. we saw a little more calm in the treasury market but up to the extent of the sentiment in equities. su: we saw the selloff study, but then the selloff at already reached a peak. let's take a look at the snapshot. what you see, bond yields close to 3.2. there is one prediction we could see 3.5% by year's end. that has the markets concerned. chip stocks, taking a big hit irma down 2% on the sector. you have some major chip large declines, not only doing with the tech selloff but the china hacking incident which we have been reporting. let's take a look at the bloomberg. we go into the chart. you can see these at btv. shifts swings show the at more than 1% in the index. today was an example. towards the right hand side of the chart, those 1% swings are happening on an average of two or three times a week. look at the faang trade

haidi? haidi: the trade war is dominating conversations, as you can imagine, at the ongoing imf world bank meetings. we will be live in indonesia a little bit later. >> next, more on markets after that turbulent u.s. session. we will talk strategy with advisers asset management. ♪ we are counting down to the open of trading in sydney for the final friday fray of this week. it's a drizzly, miserable day in sydney. it's been selling off in this market for almost as long as we have had this streak of rainy days. we are looking at an indicated downside of about 2% when sidney gets underway. -- sydney gets underway. chinese markets bore the brunt of the damage yesterday. composite,shanghai closing lower by more than 5%, the biggest loss since february 2016. all eyes on what's going to happen today. i'm shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. you are watching "daybreak: australia." treasury secretary steven mnuchin is said to have been advised that china is not the nikkei l

haidi: good morning, i'm haidi stroud-watts in sydney. from: i'm shery ahn bloomberg's global headquarters in new york. sophie: welcome to "bloomberg daybreak: asia." haidi: our top stories, the route that he raised gains on wall street has spread to asia, pushing markets further into bear territory. investorata stoking anxiety that rising prices might drag on economic growth. on the upside, tesla jumping in late trading after posting a rare profit. the model three is becoming one of america's best sellers. we're starting the hour with south korean third-quarter gdp numbers, it's amiss when it comes to quarter on quarter, the number coming in at .6% growth, missing expectations for .8% growth. 2% year on your coming in at with expectations of 2.3% and missing the bearish outlook. third quarter 2017 was unusually , so perhaps it's not surprising that were seeing that decline, but still seeing the decline from the high base, south korea has been having a workable time with its labor and the upside is we're seeing that trade picture, despite

this is bloomberg. ♪ haidi: good morning.asia's major markets have just opened for trade. shery: good evening from bloomberg's global headquarters in new york. sophie: welcome to "daybreak: asia." our top stories wednesday -- markets looking mixed at best after a rally failed on wall street. the asian market close to bear territory. saudi arabia's pledge to cover any shortfall from iran. shery: the kingdom faces white outrage from the death of jamaal khashoggi. washington says it has identified some of the suspects. we saw wall street trying to rally in this tuesday session, but still finishing in the red. we are seeing asia in early trading. a bit more momentum. sophie kamaruddin with the latest. sophie: these prices are reflecting the closing of japanese and korean markets. we are seeing gains for the kospi and nikkei 225. the kospi not looking to enter bear market territory just yet. january earnings very much in focus. all the shares are stepping -- aussie shares are snapping a three-day decline. some stocks iin on want t

. ♪ haidi: i'm haidi stroud-watts in sydney.jor markets have just bird shery:rade good evening from bloomberg's world headquarters in new york, sophie: and shery ahn. i'm sophie kamaruddin in hong kong, welcome to "daybreak: asia." . --i'm shery ahn. sophie: i'm sophie kamaruddin in hong kong, welcome to "daybreak: asia." . haidi: our top stories this thursday, asia-pacific stocks set for small gains after wall street edged higher. the dollar pushing the yen to its weakest this year. the boj's latest estimates as gdp outpaced potential in the second quarter. the banks may prepare to further reduce qad. shery: critics with calls for a pragmatic brexit. theresa may told conservatives she can deliver a good deal. treasury yields weighed on stock markets in the u.s. let's see how things are shaping up in asia. we have yields on japanese bonds and aussie bonds gaining. sophie: bonds very much in focus with benchmark treasury yield at 2011 highs. jgb's have climbed to 14.5 basis points. the 10 year yield, which on august 2, we saw the

i'm haidi stroud-watts. >> and i'm shery ahn.ealth managers are telling their clients to buy emerging-market stocks. they cite the s&p 500 outperformance for the first three quarters of the year. but not so fast says mohamed el-erian. take a listen. >> higher oil prices, stronger dollar, slowing growth, and tightening financial conditions are not a great cocktail for most emerging markets. in the short term, be careful. this is not yet the time for anti-divergence trade. mohammed el-erian on bloomberg tv earlier today. or avoid emerging markets, luca paolini's chief strategist for pictet asset management. he is here with me in new york. say, beu go and cautious, too risky, or are the cheap valuations tempting? >> i think the valuation is very tempting. i agree with the fed that the dollar is important, but i with the u.s. economy in a place where it is very -- i think valuation the trade for emerging markets, the trade for the dollar, we think the dollar is safe, so it is the right time now to invest in e.m., stocks, and bonds as

haidi: trade ever in the background. to seep into these concerns about earnings as adam mentioned. japan, taking a look at let's pull this up to show you what is happening. we have seen a continued uptick with analysts upgrading estimates for japan, but that is not being accompanied by a rise in japanese stocks. the topics seeing a drop of 3%. reasons are piling up for investors to play a cautious going into earnings season. one company, this electric 40%any, losing 6%, down year to date. it cut the full-year forecast given the softer outlook. these are themes that have played out for other companies as well. when you look at what it means for the earnings outlook, along with the anticipated growth drivers for japan, what does that picture tell us? us,: one thing it does tell we want to see the earnings growth coming through. we are coming off the back of discounted valuations in japan. you look at the topix and compare it to the global index or the u.s., the disparity is stark. there is potential for the market to run u

haidi: i am haidi in sydney.ccused washington of escalating trade and interfering in taiwan and meddling in china's internal affairs. we are watching developments in beijing. -- wereceiving a pretty are receiving a pretty frosty reception. pompeo denied a meeting apparently with president xi seen as snub why some. this is part of course because of pompeo's trying to shore up support for denuclearization plans were north korea. he had been in pyongyang meeting with kim jong-un. he did breathe in south korea. -- debrief and south korea. the cooperation between the u.s. and china on this issue potentially the risks of that being undermined highlighted by this meeting, if you say more risk to the mill for those who see a potential edging toward some kind of cold war scenario. if this trade were between the u.s. and china goes unchecked with tensions really bubbling to the service at this meeting between the foreign minister and pompeo. as you say, he addressed opportunity to hit back and pushback against when he sees

haidi: would you agree with that?ussell: there is some relevance to that, but i think that investors should really look at their portfolios in totality, and not so much worry about a geographic allocation like the u.s. or europe or asia, but really find the stocks that work best for them. whether that means -- it's hard at the moment for the u.s. market, so inevitably you are going to be further afield. haidi: talking about how cheap e.m.'s are at the market, but not one he to take that risk. if you are afraid of the trade war and you believe the tightening story, you want to invest in the u.s.. willu look at asia, what do well despite all of those headwinds? russell: we see value in the asian tech stocks. we see some value, for instance, growtioned secular type stories, like education in china. that will be a classic situation. look for those types of opportunities. a trade war is not going to necessarily really hurt that type of stock. we want to stay invested in the markets and find those sorts of opportunities tha

shery: thanks, haidi. here in the u.s.ne of the most contentious confirmation battles in history supreme court justice brett kavanaugh is already set to start hearing his first cases. president trump now says that sexual assault claims against kavanaugh were fabricated and a hoax set up by the democrats. our washington reporter is joining us now for the latest on this. we had heard senate majority leader mitch mcconnell saying that this whole drama is actually helping boost support for the gop, that the voters are on fire. what are we seeing? >> well, that's right. both parties are currently trying to make the case that this contentious and very dramatic confirmation fight is actually motivating their voters. as you said, we saw senate majority leader mitch mcconnell saying he is already seeing evidence of this and today house speaker paul ryan said that his base is absolutely animated. democrats are making a similar argument saying voters and especially this demographic of white, college educated suburban women are seeing

haidi: welcome to "daybreak: asia." i'm haidi stroud-watts in melbourne. shery: shery ahn in new york. sophie: and i'm sophie kamaruddin in hong kong. recounting down to asia's major market opens. ♪ shery: here are the top stories recovering in the next hour. tumultuous day, all major averages rose more than 1% and the dollar strengthened. the s&p 500 twice erased strong gains before rebounding in the final hours, down 8% this month. still flirting with a correction. baidu shows further evidence of a slowdown in china, sales and revenue forecast falling short of expectations. that's the you started with a quick check of our markets close in the u.s.. we saw that high volatility during earnings season, the dow gaining 1.8%, reversing two sessions of losses. the biggest jump into weeks, but we saw mixed bag of earnings, ge's sinking to a nine-year low as well as under armour surging on the earnings report. the s&p 500 up 1.6%, but a lot of volatility in the session, twice erasing earlier gains. also on track for the worse month since february 2009. the nasda

this is bloomberg. ♪ haidi: good morning, i'm haidi stroud-watts in sydney.ery ahn bloomberg's global headquarters in new york. sophie: welcome to "bloomberg daybreak: asia." haidi: our top stories, the route that he raised gains on wall street has spread to asia, pushing markets further into bear territory. housing data stoking

haidi: i am haidi stroud-watts. been talking about rising interest rates and the implication for economies around the world were on the agenda at the imf world bank meeting. but higher rates are likely to cause liquidity rates across emerging markets. joining us is the s&p global .atings had -- head great to have you with us. you are back after attending the joint imf meetings in bali. what is your concern over trade and tight liquidity conditions as the fed continues to do its thing? >> thank you for doing -- having me. we spend a lot of time hearing a world trade,ns on interest rates, and concern of how all this together is going to evolve. what is the capacity to emerging markets, particularly american markets to go through this and -- emerging markets and go out at the end when things normalize in a stable way? we think there is a lot of strength behind the fundamentals of emerging markets, but the situation continues to be fluid. haidi: as we have been saying amidst the emerging markets selloff, not all em are

. ♪ >> i'm haidi stroud-watts in sydney. >> i'm shery ahn in new york.ou are watching "daybreak: australia." japan's nikkei 225 has soared to its highest level in almost 27 years, but it is who is leading the charge that is surprising. retailers and other stocks have been driving the gains. still with us, pulitzer prize winning writer, sheryl wudunn. we have the gtb charts for our bloomberg -- gtv charts for our bloomberg. the second panel shows us the 14-day relative strength index is now past the level that analysts would consider overbought, around 71. take a look at these developed markets against emerging-market economies. where do you see the opportunities going forward? japan, with regards to there will always be overshooting there. it is interesting that the exporters were not really in there. partly because of a fear over possible trade tensions. when they start reporting earnings, they might actually have a lift there, too. there might be a little bit more room to grow. we have seen japanese corporate's doing well on the earnings front. righter

haidi: and prove all his detractors wrong, no doubt. thank you for the latest addition to that very crowded tesla short. indonesia has a message for the fed and other global policymakers gathering in bali this week. now more than ever, they must be mindful of emerging economies. kathleen hays is in bali, covering the annual imf-world bank meeting. tell us more about the conversation you had with the indonesian finance minister. she sat down with us yesterday afternoon and echoed there are twot

haidi: they're in an upbeat immediate -- mood in morning.he trade war always at the top of mind but it seems the broader commodity picture is in a pretty sweet spot at the moment. rishaad: thank, hide -- haidi. headlines from donald trump. he's been telling fox news and people that a deal with china has to be great boise because china has drained the u.s. and he's predicting a great deal with chone ask that's permitted a bit of a turnaround from what we're seeing currently. yvonne: let's look at the boards right now. this weakness seems to be erased right now. a-shares, large caps turning positive on some of these comments from the president. also in tandem, a separate statement coming from the csrc, the securities regulator in china. in ha statement responding to market concerns, we've heard them talk about new share buyback programs. they're easing the trading resistance now and they are encouraging listed companies to move forward when it comes to m.m.a. and restructuring. so more verbal support from the chinese authorities once again. ri

. ♪ haidi: good morning, i'm haidi stroud-watts in sydney. shery: i'm shery ahn."bloomberg daybreak: asia." haidi: our top stories this tuesday, asia-pacific markets, amid great concerns taking a toll on confidence. washington stopped short of labeling china a currency manipulat

. ♪ con michalakis robert o'donnell haid haidi: welcome to "deborah daybreak australia, i am haidi startounting down to the asian open. ♪ haidi: these other top stories we are covering, u.s. equities strummed back from a global selloff with the nasdaq seeing its best daily performance since march.

. ♪ ♪ haidi biz welcome to "daybreak: australia, i am haidi stroud-watts in sydney.to the first open. ♪ haidi: here are the stories were covering in the next hour, stocks in the u.s. fell ahead of the week in earnings. the dollar strengthened the highest in two months. the united kingdom has blown its plans on brexit and skeptical lawmakers are turning to bring down

haidi: the current economic recovery is one of the longest ever. of the richest ever. in the u.s.. at the start of this year, you said it is plodding along. it is not so hot that we are going to see the end very soon. has that changed? you've got more voices talking about a recession in the next couple of years, potentially. howard: look, our economy is still doing very well. in a few months it will become the longest recovery in history. i don't believe there are signs of recession anytime soon. in fact, in december, the government passed a tax bill which will be highly stimulative. it has produced a gangbusters second quarter this year. the third will probably be somewhat less than that. but i don't think there's any reason to expect a recession anytime soon. ♪ emma: more compelling conversations coming up. perspective from david rubenstein of the carlyle group. plus, what is the fed thinking as financial markets take a downward turn? we speak exclusively with dallas fed president, robert kaplan. >> some amount of volatility in the markets, up an

. ♪ alix: welcome to daybreak australiaalix: haidi:. -- haidi: welcome to daybreak australia.e counting down to asia's major market opens. haidi: here are the top stories we are covering in the next hour. saudi accounts of the killing of the journalist spark widespread skepticism. pace will bee tested this week as the strength of the sass cap -- tax cut economy will

haidi: welcome to daybreak australia. i am haidi stroud-watts. shery: i am shery ahn in new york.m sophie kamaruddin in hong kong. we are counting down to asia's major market open. haidi: here are the top stories. -- reserve ratio in china amid the slowdown and worsening trade war. market focus is on china after the golden week break. japan closed

haidi: welcome to "bloomberg daybreak: australia."unting down asia's major market open. ♪ haidi: these are the top stories we are covering in the next hour. u.s. stocks fell on continuing unease on trading growth, oil falling to its lowest in a month with tensions and saudi arabia. president trump says it looks as if jamal khashoggi was

. ♪ haidi: welcome to "bloomberg daybreak: australia."t bloomberg world headquarters in new york. sophie: we are counting down to asia's major market opens. ♪ haidi: these are the top stories we are covering in the next hour. u.s. stocks fall for a fifth day as a late rally stopped short of pushing into positive territory. tesla among the winners

haidi: you think things are dying down.from the speech, president erdogan is adding pressure. president trump facing pressure in congress as well. are you saying we should not expect too much action from the white house? >> erdogan has made certain demands on investigations. he is not threatening to break diplomatic relationships with saudi arabia. the united states has mentioned that some individuals might be sanctioned by the united states. so the basic geometry in the region remains intact. there is the iranian presence through the region. israeli-saudi-uae quiet alliance against it. the united states, and i think turkey as well, still in place. if saudi arabia were plunged into a political crisis, that alliance against iran may collapse. hear a great, we deal of rhetoric designed to look fearsome. but it is impressive that no one has taken any concrete steps. rishaad: the whole thing was very badly handled, to say the least. on an ally's land was even worse. pressuree facing internally? >> the real pressure against him