let's go to first word news with jenna dagenhart. jenna: thank you. as you just touched on china is imposing 25% tariffs on an additional $16 billion worth of u.s. imports starting august 23. it matches washington's latest move and widens the trade were between the two top economies. the revised chinese list covers items read -- items ranging from coal to medical to coal. there edging toward the point of no return. with the u.s. waging a trade were on several months, there's growing speculation that president trump could act to weaken the dollar. jp morgan economist says it is not the banks biggest case scenario but it can't dismiss the idea of a more individualist -- more policy. america'sollar once competitive edge. the pound fell to the lowest in more than nine months against the euro amidst growing concern that the u.k. could end up leaving the european union with no deal on future economic ties. sterling dropped and weakened against all of the peers. the weakness is a clear sign that markets are starting august on the risks of a no deal brexit. t

i'm jenna dagenhart, this is bloomberg.tepped up his criticism of a cornerstone of international trade. he told bloomberg he pulled out of the wto if it doesn't treat the u.s. better. >> the wto was the single worst trade deal ever made. if they don't shape up, i would withdraw from it. trump'spresident remarks came as he made key decisions on several trade fronts, including a possible deal with canada and mexico. dan 10 joins us in our hong kong studio. what does he mean about pulling out of wto? what is he likely to achieve by saying this? basically end the wto as we know it. setting the global trading system, the wto is a big part. this was the system created back in the day. trump has basically taken a global trading norms that have existed for the past few decades. he has already taken action to undermine the wto. it may be part of his strong-arm tactics to try to get what he wants out of the wto, rather than pullout. we have seen these sort of threats before. if he follows through with it, then all bets are off. ramy:

jenna dagenhart joining us from new york.e that the trade work and be avoided as the u.s. and china revive talks. the talks are overshadowed by terrorists -- by $16 billion tariffs. they may pave the way for higher-level discussions. president trump delivered a series of mistakes as he tried to portray chevrolet as the victim of chinese practices. he lamented how few chevrolets there are on the streets of -- of berlin. the brandhdrawn earlier, a camaro costs $19,000 actually worth 58,000. they include finance minister -- the finance minister and former minister peter that says he will make up another big for the leadership as he feels he does have enough support from liberal party lawmakers. global news, 24 hours a day, on-air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am jenna dagenhart. this is bloomberg. ramy: thank you. plenty more to come on "bloomberg daybreak: asia." next up, we will talk china tech. this is bloomberg. ♪ yvonne: this is "bloomberg daybreak

i'm jenna dagenhart. this is bloomberg.hank you. breaking news again. president trump wants to move ahead with the deal in mexico. trump the same to congress that there is a plan to enter the mexico deal by the end of november. the new president of mexico came into office in december. this is why the bush has been there to see a deal done. a bilateral deal is the only thing they managed to agree with. the question is with, legally, whether they can put that to congress without a trial agreement with canada as well. the white house releasing the letter on the mexico trade agreement earlier. trump is saying the plan is to enter a mexico deal by the end of november. interestingly, we have been talking about president trump talking to nafta -- about nafta. let's talk about the $200 billion worth of chinese tariffs on imports. confirmed in an interview with trump that trump smiled and said it is not totally wrong. washington is here to discuss. the impact has been digested by and put some concerns into the market and we have see

that's get to the first word news with jenna dagenhart. amazon made it just gain in four months. now within striking distance of that valuation. adding $800 billion in market the wealthiest person on the planet. crossing the line for the first time on august 2. out money doesd not seem to have worked. the government estimated of the $220 billion worth of relief in circulation, 70 billion were gotten a legally to avoid tax. more than 99% of the notes have been handed in, suggesting there was hardly any cash unaccounted for. the indian government is said to have asked the r.b.i. to clean up a banking system that is drowning in bad debt. officials want to clear timeframe for creating better capitalize lenders and improving regulatory oversight. indian banks have the worst debt ratio. famous --rld's most is heading for an ipo. not james bond, but his carmaker. turnaround,iyear the company said to target a valuation of $6.5 billion. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts i

i am jenna dagenhart, this is bloomberg.he markets that because we are seeing limited risk taking ahead of jay powell's speech. what are you seeing? reporter: the 10 year yield is hauling that bassist two-point range that we saw on thursday and that is while the u.s. curve is extending. the recent flattening we have seen looking at cheaper. the 2/10 spread has fallen below 20 basis points for the force time since 2007 and you can see that move with the gdp chart that you can find on the terminal. the currency has for a third day of losses. we are seeing a pickup in volatility on the one-month at -- as traders hedge those bigger signs. earlier main pharma jumping as much as 35% after its result and its positive outlook. we revenue meeting estimates for the company but we do have private sliding by nearly 5% after its earnings report. i want to highlight after paying such a rising to a 14 month high. the stock was rated -- erase to add financials. thank you. about earnings here. china's largest offshore oil explorer. me theirt

let's get to the first word news with jenna dagenhart. jenna: thank you. the escalating trade war is starting to affect american companies with supply-chain exposure to china. some have already moved production elsewhere. the beijing-based u.s. china business council represents 200 companies doing business on the mainland. it says they have been forced to shift abroad with brazil and the eu big the main beneficiaries. north korea says washington can't expect any progress toward stability or denuclearization on the divided peninsula while it keeps its outdated script. they noted calls for tougher sanctions on pyongyang even after it halted nuclear tests and dismantled some launch site equipment. the north remains willing to build trust and implement the singapore agreement. legal teamrump's says some sensitive topics would be out of bounds in any interview with special counsel robert mueller. they include the firing of fbi director james comey and his comments to come he about the investigation of a former national security adviser michael flynn. trump's at

let's get to the first word news with jenna dagenhart. china is fighting back on tariffs starting august 23. moveis matching the latest in widening the trade war between the two top economies. this is from coal, to medical instruments, two vehicles. ubs is edging toward the point of no return they say. we are hearing reports that the sec is investigating elon musk's tweet about a potential buyout.d -- tesla musk talked about softbank investing in tesla previously. this year's slumping cryptocurrencies hit new gaps at -- afterter the sec the plunge and the going. it cut the market value of virtual currencies to about $230 billion. good to lost about $600 billion since crypto mania peaked in january. fortis celebrating its 10 millionth mustang. it has been a best-selling sports car in the u.s. for the last 50 years. it is the world's top sports car for 50 years in a row. the company marks a milestone where thecial parade car was made. this includes the first mustang ever built. global news, 24 hours a day here and on tictoc and on twitter,

let's get to first word news with jenna dagenhart.ommerce secretary signaling more pain for china. he told foxnews the administration will create a situation where it is harder for china to continue bad practices and then it would be to reform. beijing has pledged to respond in kind. the foreign minister said tariffs could hurt american companies. >> we live in a globalized world. we are not doing 19th century trade. good all from one country to another on the globalized industrial and all chains. 60% of chinese exports to the united states are actually made by foreign companies including american firms in china. as -- is the united states trying to put tariffs on its own companies? jenna: the bank of england raise rates, but some say it jumped the gun. it is now the highest since 2009 when policymakers are saying further hikes will be needed for inflation. the british chamber of commerce said they should have waited until november meeting, to take into account crucial brexit deadlines in october. spacex on course to beat going to be

i am jenna dagenhart. this is bloomberg. back to you.erns are mounting about chinese companies facing a wall of [indiscernible] one european fund giant says it is time to pile in. we have more. why does aberdeen think this is a good time to get in? reporter: they started adding to their holdings of chinese junk bonds in the second quarter. the selloff earlier this year saw years -- the highest in more than three years. that made the asset class quite attractive. what aberdeen believes is policy steps will be taken to address the tighter financial conditions that have made investors uncomfortable about the companies' ability to revive credit. we have seen this in the past few weeks out of china. that is having investors comfort. -- dollar junk bonds which are mostly from chinese issuers returned the most in two years in july. ramy: which sectors is everyone finding -- is aberdeen finding attractive? andreea: they are keen on chinese developers which may account of the bulk of offshore bond issuance. property is a major contributor to the

first word news with jenna dagenhart. reporter: thank you.riffs have taken a toll on japan. month, rose for a 20th but less than forecast, while rising oil pushed up the value of imports leaving a trade billion, five1 times worse than analysts were expecting. shipments to the u.s. more than 5% last month from a year ago. tesla is said to have received a regarding.om the fcc elon musk's plans the demand for more information comes as the commission investigates last week's tweet about having secured funding. shares fell more than 2% for a second day, the lowest since musk first wrote the idea of taking tesla private. the sec and tesla both declined to private -- comment. president trump has lost patience with former cia director john brennan, yanking his security clearance and accusing him of erratic conduct and behavior. brennan led the agency under president obama and has been a vociferous critic of the current president. brendan tweeted that trump is trying to suppress freedom of speech and punish critics for speaking out, and that he will n

i'm jenna dagenhart. this is bloomberg. yvonne: thank you.ort in late trading after second-quarter revenue beat expectations and the cash flow. yuan muska setting new targets. the goal is to produce 6000 per week by the end of this month. musk took time to apologize for his behavior during last quarter's call. listen. for would like to apologize being impolite on the prior call. honestly, there is no excuse for bad manners. have no reason for it, but i got no sleep. -- 120 hourrking to weeks. nevertheless, note excuse. my apologies for not being polite in the prior call. let's go to auto reporter dana hull. she has a story in san francisco for us. she was on the earnings call to listen about elon musk. your biggest take away was the town from mr. muska. dana: earnings report is all about the earnings. it was extraordinary that you want let that conference call by allowing the two analysts who he had been rude to its first question and directly theogizing to them both to call set a good tone are you saw shares go up even further once he did th

let's get the first world news with jenna dagenhart. the latest r.b.i.policy makers may cause as they assess the impact on the economy. the governor said domestic growth looks reasonably strong but warned of the escalating trade war which could hit investment and exports. the rupee is asia's worst-performing major currency. it thanks to a record this week on the crisis in turkey and they widening trade deficit. -- the widening trade deficit. the copper suggest that the industry will avoid a damaging strike. the main union said members received a company's latest offer with close complete satisfaction. voting on the proposal that scheduled to finish late friday. the union reached an agreement after three months of talks to avoid a repeat of last year's 44 day strike. the biggest oil discovery in australia and more than 20 years could make its owners a target for buyers. petroleum carnarvon struck lucky while drilling off the coast in western australia, analysts say there is a basic is for 115 million barrels of highly commercial crude. the world's largest

ism jenna dagenhart, this bloomberg. haidi: its get you a quick update on the markets.ty flat picture as you can see. the kiwi dollar holding on to those losses. we could get more losses to come after falling 2% in the wake of that dovish tilt. looking to build on that decade high for that market. let's get more on what you will be watching as training gets underway. adam haigh is here with us. stocks stills. within striking distance. recordou say you are at highs. you're talking about some real serious gains. getting to the end of the year is less than five months away. what these bullish strategists are talking about is an increase in the magnitude from here, 10%-plus gains from here. tony dwyer expects about 12% from here. the s&p getting to about 2200. that is the green line. look a much higher that is then the street average. is,mately what the thesis the fact that the economy continues to expand. the fed continues to tie up policy but not too much. he has an increasing earnings and environment that gets better and better. people are talking about peak earnings. wh

i am jenna dagenhart. haidi? this is bloomberg.hitting a record high, looking maybe just a tad , a little bit of dollar weakness they are, the dollar index down by about 2/10 of 1%. sydney futures, it looks like we are on track for a fifth day of gains, trading at the highest 8 is what weand .730 are seeing. that did take a tumble with the expectations that a rate hike before september 19 -- you can take a look, push down to just majorom about 80% after lenders are expected to raise mortgage rates imminently. all right, let's take a look at what we should be watching as trading gets underway. out with a 14% rebound in the shanghai composite. this is like throwing a dart at the wall, isn't it? the chinese markets? >> yes, you certainly have to be brave to make a call on the chinese markets. referring toy are is the decline, and the rebound we have seen in august, and in some ways, that is giving them a bit of comfort. what they are really saying, the people arethat unfairly mispricing a downturn in the economy and that they are over