i am ramy inocencio. this is bloomberg.s climbed from the lowest level since last year and u.s. stocks are rebounding as well. we are seeing the biggest gains in six months and holding the longest losing streak. see how everything is shaping up. sophie: despite the recovery for asian stocks on friday, we look at a cautious tone this monday. sentiment remaining fragile, but some key event risks from the u.s. treasury. reports come as early as monday. -- book ending the week with chinese gdp data, getting slowdown in growth. looking at how things are kicking off in new zealand, you see the anz starting well. the kiwi dollar around 65 level, not making the finest -- finance minister in new zealand comfortable. over a missing saudi journalist. $72 a barrelbove after the biggest weekly loss since may. looking at this chart on the terminal, this after global stocks lost the biggest weekly drop in six months your that pushed valuation, the cheapest it had been in more than a year. we could see this -- [indiscernible] in hongophie

i am ramy inocencio.: despite the tailwinds from wall street, these markets are under pressure in australia. .ophie: shares are off .9% materials, utilities and financials among the biggest drags. while pharma and other shares are in bright spots. 172 stocks sliding. we have 27 gaining ground in sydney. some movers of note, line is extending an advanced after the review continues. a 20 week low fighting with other media related companies like domain holdings and others. overall we are looking at a down day for aussie stocks trading near a session low. friday stock rebound, might be looking dead cat like. sophie: we are finding a few whiskers short perhaps. we look at the futures aboard, we see contracts pointing lower for tokyo and korea and also futures signaling caution for the u.s.. imfend warnings from go chiefs, cautioning market volatility ahead, and the yen trading at 112, looking steady after capping its best week since february. we do have the fed meeting due on wednesday that will likely play in

haidi: ramy inocencio in new york.ing of earnings, netflix jumping after hours, getting a boost from strong third-quarter results, showing they are on game after some disappointment. the company added nearly 7 million users around the world, about 2 million more than forecast. a closer look with chris palmeri , los angeles bureau chief. what was prompting this huge jump in's sovereign -- in subscriber growth? chris: growth all around the world, huge internationally, but also here at home as well. and they are projecting numbers for the fourth quarter that are almost double what they saw in the second quarter. so a huge investment in content, and a lot more people wanting to watch. it looks like a cinderella story for netflix. ahead, how long can they continue with this? hastings, ceo, reed was asked on the call, would you think about diversifying into another business besides video streaming? he said, we have growth ahead of us for five, 10 years. in the past when we saw a market decline, like with the original dvd bus

haidi: thank you so much, remy inocencio with the latest on amazon.e sticking around over the next two hours as the market opens in asia. looking like a bit of a mixed picture. an up-and-down session. this is bloomberg. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. >> good morning. i'm haidi stroud-watts in sydney. >> good evening from bloomberg's global headquarters in new york area i'm shery ahn. >> and i'm sophie kamaruddin in hong kong. welcome to "daybreak: asia." >> our top stories this wednesday, asia-pacific stocks set for a mixed start after a volatile session in new york. saluting america's extraordinary economy, saying low

ramy inocencio, bloomberg news, new york.sying, it will get very in the asia-pacific. look at things from japan, indonesia, china. it is the last day of the date range. ofically we will get all these things in the next few hours. most important would be the first one which would give us an indication of whether or not china is opening up to support the economy. yvonne: when that stimulus will trickle through. for the week, the big event is the treasury report. it doesn't seem like they will be labeling china a currency manipulator you we will see if that goes. brexit talks after failing to reach a breakthrough, theresa may meeting e.u. leaders. fed minutes will be interesting. given the wind, has sunk toa -- won a five-year low. let's look at markets. it is dynamics across the board. look at these markets. we do get the hang seng just going into its lunch break. down 1%. fall, 3.3%.errible an 11th decline for this company in 12 days. something like 40% down your today's. other companies stopping this market from falling back

ramy inocencio with the latest.as agreed to buy red hat for 33 billion dollars in its biggest ever purchase. the deal is aimed at helping ibm jumpstart and catch up in the cloud. let's get more from our reporter in chicago. tell us what does red hat do, and how would this help ibm. >> good evening. red hat works with the distribution of providing of services and infrastructure related to the linux operating system which is completely operating -- open source. they are behind the deal. this will allow the woman to fulfill her pledge of increasing ibm significantly. it has fallen behind alphabet and microsoft. shery: how does it compare to pass ibm deals and tech a man a -- tech m and a? >> in the clips is their previous record, $5 million from 2007. it is the third-largest tech purchase aing dell's during the dotcom boom. shery: what does it mean for the red hat ceo? >> gina is adamant this is not her goodbye. she plans to stick around the next few years. while red hat will be absolved into the cloud division of ibm,

ramy inocencio has the details.ucks itself has said it is opening one new store every 15 hours, which is pretty amazing when you think about that. off of this, off of this crazy growth that is happening, and off the same store sales that are slowing in the united states, bill ackman says there is great runway for growth in that country. in terms of the numbers, you mentioned the $900 million stake. that equals about 15 million shares. that is 1.1% total in starbucks. this also confirms something that bill ackman said. in august, there was a hint that they took i not 800 -- they took million stake in some company. downplaying the fact that all of the competition is happening in china doesn't hold any flame to what china can do their because a lot of the other ones are lower cost chains. they have about 500 stores -- starbucks is where it's at. looking at the share price quickly, in terms of where we are coming you can see that come on the inter-day chart, it has almost hit $60. it closed up by about 2%. ackman says t

remy inocencio has a preview. what should investors be watching?ts agree there will not be much fireworks at all. we will take a look at revenue. there are notable numbers. cost controls will also be something, but not so much. let me walk you through the revenue numbers. this is according to bloomberg intelligence. expectorgan and citi, we a little bit of a rise. 5% for jpmorgan, citibank, 2%. wells fargo will fall by 2%. let me walk you through the eps. it may be the biggest number, 30% for jpmorgan. 18% for citi. 13% for wells fargo. the benefits of higher rates strong cost controls,, could be at the forefront. you are looking at net interest margins. this is apparently a slower pace of increase than what we have seen in the past 80 years. this is what banks get from the posits -- deposits. for jpmorgan and wells fargo, there is a little bit of a positive lift. for citibank, the net interest margin may fall by about two bits. islysts say the future probably more important than the past. a veteran bank analyst says the third quarter is an example

ramy inocencio has the story. let's get started with this.ncellorritish spoke to parliament early today and he said listen, the tech giants out there, a lot of them are based in the united states and are not paying their fair share. they say that has got to change. that has to change in the law. on these been focusing big ones that have annual global revenues of more than 509 pounds -- 500 million pounds. these are the amazons, netflix is amazon,his netflix and facebook. mr. hammond is following through when hedge, a threat said that the u.k. would go it alone if the eu version saw this. there is an eu version out there. it turns out that some countries are blocking that. the czech republic says the cost of tax collecting is more than its revenues. of course, there are a lot of people out there who don't want this to happen. including an industry body in the united kingdom. the tech london advocates are their name. they say it is a prudent step but it is a wrong approach. there has not been any comment from google, twitter or facebook. mom is

ramy inocencio has the details. sees coffee as aspirational.till pretty expensive compared to what people make in the country. he will go to starbucks and see people sitting there for hours. not only that, starbucks itself says they open a new store every 15 hours. compare that with what is happening with slowing same-store sales in the united states. this is a recipe, i guess pun intended, for a good ca caffeine fix. 15 million shares. that is what that buys. this also confirms some hints, s ackman told us in august that they were looking at an $8 million stake at an undisclosed company at that time. starbucks is be in public. -- being polite. they say they view the active engaged dialogue they have with shareholders as critical to their strategic approach. we can show they are looking forward to maintaining a productive dialogue with mr. ackman, as they say with all of their shareholders. looking at the share price, when the news actually hit earlier this afternoon, the share price pops very quickly almost to $60 a share. still ending in the

we have ramy inocencio with more.pe in march of the only -- but they only went public today. ramy: that is pertaining to google plus. the interesting thing is that a lot of people use it but with that said, you and i and a lot of people out there are watching probably have dormant accounts out there. google actually is up to -- revealed that it impacted advocate of the people that includes names, ages, occupations, you can see they came out with a on your screen here on a google blog post. they say they fix it immediately be a think what might little bit galling to some folks is that this internal committee actually wrote this back in january and they found about it in march 7 he did not need to disclose it because no proof existed that any of the data was misuse. that might be one level. another level is that they fought -- thought they do not want to suffer any regulatory backlash. let's bring up one of the quotes there from the blog post. you can see for yourself. is that they can't from which users were impacted b

. ♪ ramy: i am ramy inocencio in new york. haidi: you're watching "daybreak asia."er said on friday that the fear of the next financial crisis is pushing down investments. we will almost surely have another financial crisis. we do not know when, but it will happen again. there is a thing we can do right now to get ready for that, which is to create a bunch of new banks which are legal entities that are shells sitting there. anothered to inject quantity of government taxpayer funds into banks, put them into these new banks. the queen banks, let them operate, then you avoid the populist backlash of why did you give billions of dollars to the guys who through us out and seemed like they cause the problems. withould sort them out 100% government-owned equity, but with a plan if you provided a bunch more capital you would eventually selloff the shares. part of the source of the is thet aggravation distribution of wealth and income. the practical effect of investment right now is not going to infrastructure, not going to education, not going to things that will redeem tha

ramy inocencio has the details. ramy: he is back to twitter.thought you were safe to get back in, you are not. let's bring up the most recent tweet that just dropped. he is missing a verb but wanted to say, just want to say the short seller enrichment commission, sec, is doing incredible work and the name change is on point. he replied to someone saying's short-sellers are value destroyers and should be illegal. the war on shortselling continuing. there is a lot of replies on elon musk's twitter account. one person said amazingly elon musk, you seem to be working against us longs as well. what really happened with the settlement we were talking about ? a few days ago it seemed elon musk couldn't help himself and his throwing shade in their general direction. we are seeing the share price fall. last time it was down 2%, now it is 2.14%. one interesting thing is he was supposed to give up his chairmanship in 45 days, less than that now. one interesting line is tesla board members have proposed 21st century fox's james murdoch might come in as the