paul: welcome to the journal editorial report. i'm paul gigot. attorney general william barr appearing this week at one of two scheduled hearings on capitol hill, testifying before the senate judiciary committee about his handling of special counsel robert mueller's report. barr's testimony wednesday was preceded by the leak of a letter from mr. mueller from march 27th complaining that the attorney general's four-page memo to congress outlining the main conclusions of the mueller report quote, did not fully capture the context, nature and substance of this office's work and conclusions. barr addressed mueller's letter in a subsequent phone call with the special counsel in wednesday's senate hearing. >> i offered bob mueller the opportunity to review that letter before it went out, and he declined. i asked him if he was suggesting that the march 24th letter was inaccurate, and he said no, but that the press reporting had been inaccurate. he argued for putting out summaries of each volume, the executive summaries that had been written by his office

paul: welcome to "the journal editorial report." i'm paul gigot. tensions between president trump and democrats in congress reaching a boiling point this week with nancy pelosi accusing the president of engaging in a coverup as some in her pa party push the speaker toward opening an impeachment inquiry. the president responding by walking out of a meeting with democratic leaders wednesday, saying no deal can be made on infrastructure or anything else while democrats continue their investigation. let's bring in wall street journal columnist, dan henninger. jason riley and editorial page writer, kate o'dell. dan, was the president's frustration with the speaker justified? >> i think it was entirely justified. i mean, she pulled this coverup thing about an hour before she was going to walk into the infrastructure meeting. and trump was appropriate to say time out, you people have to make up your mind. you want to run for the next two years teeing me up as public enemy number one or do you want to get things done. the next day, speaker pelosi had a pre

paul: welcome to "the journal editorial report." i'm paul gigot. tensions between president trump and democrats in congress reaching a boiling point this week with nancy pelosi accusing the president of engaging in a coverup as some in her pa party push the speaker toward opening an impeachment inquiry. the president responding by walking out of a meeting with democratic leaders wednesday, saying no deal can be made on infrastructure or anything else while democrats continue their investigation. let's bring in wall street journal columnist, dan henninger. jason riley and editorial page writer, kate o'dell. dan, was the president's frustration with the speaker justified? >> i think it was entirely justified. i mean, she pulled this coverup thing about an hour before she was going to walk into the infrastructure meeting. and trump was appropriate to say time out, you people have to make up your mind. you want to run for the next two years teeing me up as public enemy number one or do you want to get things done. the next day, speaker pelosi had a pre

♪ ♪ paul: welcome to journal editorial report, i'm paul gigot.sions with iran increasing in the week with the state department ordering the evacuation of all non-emergency staff from the u.s. embassy in baghdad. the evacuation comes as military officials warn of potential imminent threats to american troops and interests in the region. the secretary of state, mike pompeo, responding to critics who say the administration is exaggerating the threat and trying to goad iran into war. >> we fundamentally do not seek a war with iran, but we've also made clear to iranians that, if american interests are attack thed, we will most certainly respond in an appropriate fashion. paul: retired four-star general jack keane is a fox news senior strategic analyst. welcome, general, good to see you again. >> glad to be here, paul. paul: reports of threats from the iran, do the they sound credible to you? >> yeah. they're credible and they're specific. and i think the reason for that is when they're using those kind of words, it means they'd likely have multiple so

paul: welcome to "the journal editorial report," i'm paul gigot. the battle between president trump and congress heating up as the house judiciary committee voted to hold his attorney general, william barr, in contempt for refusing to provide lawmakers with the full mueller report. the president asserting executive privilege over the unredacted report and underlying evidence and fighting congress on another front as well with treasury secretary steve mnuchin telling lawmakers he would not comply for a request for six years of the president's tax returns, prompting a subpoena from the house ways and means committee. democrats are objecting and declaring that the nation is in a constitutional crisis. >> we've talked for a long time about approaching a constitutional crisis. we are you now in it. >> i agree with chairman nadler because the administration has decided that they are not going to honor their oaths of office. paul: let's bring in our panel. editorial page writer, gillian melcher, bill mcgern kim straw straussel. are we in a constitutional

paul: not really. no. lemonis: how come, paul? the tension and stress of locations and closing, and that all fell apart. lemonis: it didn't fall apart on my end. my money got spent. i haven't gotten one license fee of any kind, not a penny, not a nickel, not a dime. paul: we're trying to hold this together. lemonis: what do you want me to do? i need you to give me some direction. paul: work with craig on a temporary lease agreement. lemonis: you want me to work a deal out with the landlord so it lets parlour off the hook? yes or no? paul: yeah. lemonis: great. no. paul: what you brought up a couple of days ago was not true. i didn't have the proof. and you do this to me time and time again. mike: paul, i'm not going to go back 6 months and try to remember. i don't know. paul: that's a lie. lemonis: i'm here today of hershey's milkf whole chocolate with almonds. don't believe us? see back for details. ♪ wearing powerful sunscreen? yes! neutrogena® ultra sheer. unbeatable protection helps prevent early skin aging and skin cancer wit

paul: but as the u.s. now strong enough to essentially, taken the tariffs and have enough resilience to plow through and continue to grow at two or three percent? >> only one thing could really go wrong on this. and that is if while this thing drags out, we held a knife to china's throat threaten them with their first ever recession which could be a hard landing, if you don't get the negotiations done in nytime and it happened it was a global recession that will engulf everyone. there's a reason they call them supply chains.there is a chain of all. we push a guy off of the cliff and you are chained to them, you go next. that is the risk.if not the direct risk that the tax effective terrace will cause a recession. paul: so both sides have a big incentive to do a deal. thank you. >> thank you. paul: bernie sanders rules on his education plan and declares war on school choice. but will also help you win over the minority voters that he needs? agents available 24/7. it's not just easy. it's having-a-walrus-in-

this is bloomberg. ♪ ♪ paul: good morning. i am paul allen in sydney.rom the market open in australia. shery: and i am shary -- ahn in new york. am sophied i kamaruddin in hong kong. welcome to "daybreak: asia." paul: our top stories, asia-pacific stocks look to track the advance, with an apparent truce in the escalating trade war, but the pressure is still on. huawei says it has

paul: welcome to daybreak australia. i'm paul allen. shery: i'm shery ahn. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. wall street tumbles as china hits back on tariffs. president trump warns beijing not to go too far. stocks fall the most since january. investors seek safety with gold up the most since february. the yen has strengthened in early trading. oil dropping for a third day and the racing earlier gains sparked by new tensions in the middle east. shery: later in bloomberg technology global link, uber suffers another day of selling. the stock down about 20% through its first four days of the market. islook at how the ceo selling the broad game. stocks losing more today as they did in the whole of last week. the dow lost more than 600 points. we saw stocks that are trade sensitive such as caterpillar and apple losing about 5%. more than 450 stocks lost ground on the s&p 500 which fell 2.4%. tech and industrials leading the decline. nasdaq testing the biggest decline of the year. 10 year treasury

paul: good morning. i am paul allen in sydney. we are one hour away from trading in australia, japan, and korea. shery: good morning. i am shery ahn. from -- i amso sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this friday, asia-pacific stocks look poised to extend a rally on wall street. futures point to -- global tech suppliers are in focus. stocks have snapped a two-day rally. one day before the election, the aussie under pressure under the ongoing trade war the faltering domestic economy. shery: let's get you started with a quick check of how markets close in thursday's session in the u.s. every sector of the s&p 500 was in the green. some earnings from cisco and walmart lifted sentiment. we had a strong housing report. all of that helping yield rebound after the two-year yield fell to the lowest level since february of last year. we have some jitters around the latest headlines on trade on huawei. we saw markets fade into the close a little bit. u.s. futures unchanged. let's see how we are

paul? paul: thanks very much.e is looking to make its pixel line of smartphones more attractive to consumers with a cheaper price tag. it has so far failed to sell in large numbers. we have the details. tell us more about these new phones, the pixel 3a and pixel 3a xl. >> they come with quite a few compromises. there is a less powerful processor that will run them. some of the materials were a little cheaper so you don't get a fancy glass back. there also is a head jack, an old-school thing that some people still like. the main point is the smallest one is $400 which is half the price of google's prove he is pixel phone -- previous pixel phone. emily: earlier, i spoke to the head of google's pixel division and asked about the strategy. take a listen to what he had to say. mario: basically, what we set out to do is design a product from the ground up at a much lower cost and really rely on on artan -- on our unparalleled software experience to bring that lower price. emily: there are some compromises here, potentia

paul: i am paul allen in sydney. you are watching daybreak australia.n japan reopens after the longest market holiday in more than 70 years. bloomberg's across asset asia editor is here. it has been fairly ugly on the markets. japan coming back in the middle of all of this. what can we expect? >> all the development in the past 24 hours, from yesterday having that big selloff, and you losses as markets started to look at these negotiations on trade are somehow going to be resolved. and then we have the comments this morning. in the middle of that, the japan market has not traded since april 26 and has reached a lot of what we saw last week, including the fed meeting. i think what is going on with trade will be the main thing and we will probably see that under pressure. the nikkei 225 futures in deep selloff yesterday. that is going to be the main focus today. we also have the very big selloff in china yesterday. yeah, japanese markets probably coming back from a golden week to what is now going -- not going to be a very golden day for them. shery: espe

paul: welcome to "daybreak australia." shery ahn: i'm shery ahn of bloomberg world headquarters in new york. sophie: i'm sophie kamaruddin in singapore. we're counting down to asia's major open. ♪ paul: here are the top stories we are covering in the next hour. trade talks resumed in washington with president trump saying the deal is still possible. even so, wall street closed with a fourth straight loss. of the bottom of the range. the ipo valuing the company below its last private estimate. -- to infinity and beyond almost. jeff bezos fires up the space race, making a case for a return to the moon. shery: the s&p 500 fell for a fourth consecutive session, now headed for its worst week of the year. we saw materials and tech stocks leading the declines. those are two sectors that are sensitive to trade. we had at one point stocks paring back some of the earlier declines as we heard more positive news out of the white house with president trump saying he is still expecting a deal this week, that he may be speaking on the ph

paul: i'm paul allen in sydney.the latest business flash headlines. we are told it will likely target a midrange price to ensure strong aftermarket trading. bullish.l is being investors are worried about slowing growth and more than a billion dollars in losses in the first quarter. fell afterng shares a report from berkeley. saying the crashes are still being underestimated. boeing's recovery will take longer than expected and public the 737 maxo fly on 8 will be a bigger problem than anticipated. in seven has dropped of eight sessions. general motors self-driving unit has attracted more than $1 billion in fresh investment. this is the third round of investment in the last year for the cruise unit valued at $19 billion. they want to start an autonomous ridesharing service. dayy: facing a tough hump following the tumble in the s&p 500. chriserg's energy editor joins us from tokyo. whatwe traded in the u.s., was interesting is that we saw the losses earlier in the session but later we saw some recoveries. there is sti

paul? paul: thank you very much for that.et more on what we should be watching as trading gets underway with andreea who joins us now. with no direction from the u.s. because of the holiday, asian investors will need to navigate trump's latest rattling on trade all by themselves. what sort of reaction can we expect? andreea: new could go either way from what we have seen in the last few weeks. the futures are fairly flat this morning. we have seen that deteriorating relationship between the u.s. and china really weigh on investors in the last three weeks. at the same time, there is a feeling that maybe they have become immune. we saw that rally in china stocks late in the day yesterday rebounding from the same low for a third time. we also had hedge funds buying dips in u.s. stocks, basically increasing the speculate of long positions. that suggests that maybe investors are not as concerned anymore so they are becoming immune and brushing off these concerns about the trade dispute that is so ongoing and the rhetoric team chan

paul. paul: let's get the first word news with jessica summers. jessica. trumpa: the administration has again refrained from labeling china a he manipulator. the decision leaves one of the campaign promises unfulfilled but avoids further escalation in the trade war. the foreign exchange report to addsess ads vietnam, -- vietnam and other countries to a list for manipulation. new zealand's annual budget has been thrown into disarray after the opposition national party released parts of it are really -- it early. the nationalists say they acted appropriately. is over shattering the well-being -- overshadowing the well-being budget. plans haveel's fallen apart. official told bloomberg that she has decided her heir apparent may not be up to the top job. the woman has seen her popularity slide since taking over as a union leader in december. she oversaw the cdu's worst ever results in a national election. politicians from around the world have threatened representatives of facebook, google, and twitter with stricter laws in a wide-ranging hearing in ontario. la

paul: good morning. i am paul allen in sydney.from the australian market open. shery: good evening. i'm shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this thursday. fanning the flames, the u.s. debates that listing more chinese tech companies. beijing's slams what it calls an american -- american smear tactics. the s&p

tom: i am paul allen in sydney -- paul: i am paul allen in sydney.he s&p 500 today gain was the biggest in more than a month. .ue in part to president trump su keenan joins us now. that news is coming after the bell. as good of news as we thought on deeper readings. su: the idea of kicking it down the road is something the markets seemed to embrace. thee were some realities in market that there would be changing headlines on the trade front. there was also some i speculate bad economic news -- unexpectedly bad economic is for the u.s. and china. the snapshot was we saw the media and entertainment sector of the most. .utures are mostly flat that is because we are seeing the tensions ease. as is the overarching headline. let's look at some of the big movers and what you see are various different stocks and different stories. different gainers and losers. this put pressure on the stock. hoover -- lyft and uber both rebounded. the drivers for these auto sharing services are contractors, not employees. that alleviates investor concerns about who would pay

paul: good morning. i am paul allen in sydney.way from trading in australia, japan, and korea. shery: good morning. i am shery ahn. from -- i amso sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this friday, asia-pacific stocks look poised to extend a rally on wall street. futures point to -- global tech suppliers are in focus.

paul: welcome to daybreak australia. i am paul allen. shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. act now, president trump wants china to strike a deal on trade because worse could be on the way if he is reelected. uber will be in the spotlight when wall street opens. investors bracing for another tough day. australian elections swing into gear with scott morrison appealing to the country [indiscernible] shery: u.s. futures are trading after a weekend of trade antagonism tween the u.s. and china. futures are down .7%, reacting to the latest from donald trump. he tweeted china broke the deal, that we are at the right place, where we want to be in china. we have the u.s. markets closing optimism tradead negotiations didn't completely breakdown. 10 out of 11 sectors on the s&p 500 gained ground, being led higher by utilities and materials. we also have the dow gaining .4%, the nasdaq unchanged but we have data out of the economic front. we saw the dollar

this is bloomberg. ♪ paul: i'm paul allen in sydney.he -- daybreak australia. u.s. stocks rebounded tuesday after president trump were to reinvest investors that a trade deal with china is still in the cards. >> we are in a very strong position. they want to make a deal. it could act -- absolutely happen. in the meantime, a lot of money is being made by the united states. a lot of strength is being shown. this has never happened to china before. our economy is fantastic. there's is not so good. shery: joining us now is the bloomberg congress editor. we take -- continue to get mixed signals out of the white house. president trump today being more optimistic on the u.s. economy and how trade negotiations are progressing with china. still he's asking for the fed to help out as well. >> this is another continuation of his criticism of the fed. he has urged them to cut interest rates and accelerate bond purchases. now he is tying that to the trade conflict with china. centralsts that china's bank would make similar moves in order to boost it

this is bloomberg. ♪ paul: this is "daybreak: asia." i am paul allen in sydney.ry: let's get a quick check of the business headlines. volkswagen is making changes to its battery plan. concerns that a deal with samsung might unravel. they merged during detailed negotiations between the company. the samsung unit pledged a cut. say they are not pushing for nissan to join, but the japanese carmaker would be free to join the expanded group in the future, if it desires. 7.5% for nissan. shery: considering options, including a capital increase in the next two months. sources say tapping investors for fresh cash is the least favored option because it could cause a backlash. chief executive has signaled deeper cuts as germany's largest lenders struggled to make a profit. coming up next, huawei is isying ip theft and says it more likely that u.s. is stealing from them. this is bloomberg. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborh

paul: good morning. i am paul allen in sydney. we are under an hour with from the australian market open. shery: good evening. i am shery ahn. sophie: i am sophie kamaruddin and hong kong. welcome to "daybreak asia." in hong kong. welcome to "daybreak asia." paul: our top stories this friday, asian stocks look set for modest gains after wall street got a rebound despite the treasury's rally rolling on. a 20% stake in crowne resorts. we are expecting some optimism in japan this hour. we will bring you the latest jobless and industrial production data. shery: let's get started in south korea. breaking members. industrial production yawn year contracting 0.1%. much smaller contraction than was expected. the estimate was for its a faulty .2%. it is also a more benign figures and the previous month, where it fell 2.8%. we are seeing it fall 1.6%. jump than was estimated. we have seen a south korean economy under a lot of pressure. five months of the clients when cameme -- declines when it to exports. gdp numbers have been soft. we're g

paul: i'm paul allen in sydney.ntral banks to lower interest rates remains firmly open next week. having policy decisions in australia, malaysia, new zealand, thailand, and the philippines, as signs growth of new easing in the region. after fed chair jerome powell pushed back against pressure of 4 rate cuts. let's bring in a partner and asset manager at east capital. it focuses on emerging and frontier markets. she joins us from hong kong. i mentioned 5 asian central banks making policy decisions next week. probably 4 our lives. how closely are you watching those? >> we are watching this, but we don't spend a lot of time. forhink the trajectory global markets, in terms of monetary policy, is more important than what's happening in each and every company. markets we are focusing on like china, we have seen there is no specific surprise to expect. it is clear how things will be developing. we spend more time looking at earnings, reforms, what is going on, in terms of geopolitics and the central banks. paul: in terms o

paul: i am paul allen in sydney. shery ahn: i am shery ahn in new york. you are watching daybreak australia. trump's.s., president action against huawei was felt throughout the chip sector. >> many of them have already stopped shipping and that has had an effect already. it shows that the market is still on edge. take a look at the way we closed. notice the semi conductor index, down 4%. that shows you the big drag, which was tech. futures are up slightly as we head to the next open. qualcomm, note they put out a slashing their forecast because of the anticipated loss of revenue from huawei. they have halted shipments as well. takencompanies have all major hits. let's go into the bloomberg real quick. here you see the last couple of .ays of sales lastly, let's take a look. this is a marquee stock that fell as much as seven point 5% in the latest session. in the friday session. an analyst says this is code red for the stock. they are really hoping that reaching the $200 level is significant. the company faces a monumental uphill climb to return and reach p

paul: i am paul allen in sydney. it has been quite the morning.rom donald trump threatening to more than double tariffs on imported chinese goods with more than $200 billion. he is not happy with the trade talks. china responding. reaction.ry profound we have markets in australia sliding. currencies are sliding, the yuan strengthening. texas is slipping right now. let's get into this a little more with our next guest. this is the founder and chairman of the consultancy firm jvc energy. let's start with the oil price and the impact of these trade developments. where are you expecting it to hit from here? we all see that not only can trump tweak, he can send a quick -- tweet, he can send a quick message. it doesn't change the tone of what everyone expects to be a difficult week ahead of us. the market right now is going by the news. we have seen oil priced in now. what comes next. the market is in a wait and see position. paul: another factor of all of this is the end of waivers on the iranian oil sanctions. do you think that will affect prices vary

paul: thanks very much. let's get to first word news now .ith ed ludlow ed: the bank of england governor mark carney says he is ready to raise rates by more than the markets may expect. if brexit goes smoothly, after policymakers kept rates on hold as expected. he says they are expected to act removal from europe is completed. hong kong grew less than expected as the week mobile economy and ongoing trade war dampened sentiment. throughnded by the .5% much compared with a year earlier with analysts looking for growth of almost 2%. hong kong is seen slowing further this year amid continuing trade tensions and weaker property prices in the city. facebook is banning a number of controversial figures including alex jones. the social network blocking personal accounts, associative fan pages and instagram accounts it says break its policies on hate speech and violence. the legislator louis farrakhan is also barred for his anti-semitic views. band follows similar moves by twitter against the same individuals last ye

paul: thanks for a much.a,"erg markets: let's look at how we are place. japan returning. the nikkei down 1%. the kospi, off 1%. positive territory in australia, up .67%. economists are split on where he will be heading. let's have a look elsewhere. features from the u.s. looking weaker -- futures from the u.s. looking weaker. a rebound in china after monday's selloff. 2%. that is it from "daybreak: asia ." our market coverage continues as we look at the start of trade in asia. stay with us for "bloomberg markets: china open." this is bloomberg. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. ♪ >> is 9

i am paul allen. sophie: and we are counting down to the open. ♪ paul: here are the top stories we are covering in the next hour. u.s. stocks tumble to the lowest since march over deepening fears of protracted trade wars with china. , a signal ofore looming recession. rainfall affecting wheat. anchor: and we have breaking news out of the u.s. we are hearing from the treasury department, releasing their semi annual report. they have reframed from naming china a currency manipulator, something they have not done since 1994, and they have expanded the list of u.s. trade partners under review to 21. when it comes to the watch list of these fx reports, it is italy, ireland, malaysia, and vietnam now on the monitoring list. also, the u.s. says the nine countries require close attention on currencies. they are also saying there are no major trading partners that are a currency manipulator, and what is interesting right now is that the u.s. has lowered two thresholds for the manipulators. they have three crit

paul: thanks.and vodafone [indiscernible] after the regulator locked to their merger. they plan to appeal in court. shery: the ceo of cancer drug maker aging joins us from the global china summit in beijing. this is bloomberg. ♪ shery: this is daybreak asia. i am shery ahn in new york. paul: i am paul allen in sydney. the second day of the global china summit in beijing. but crossover to the event with stephen engle. thanks so much. we are here, day two and the guest lineup continues to strengthen. our guest this hour is john oyler, the beijing founder, chairman, and ceo. it is a domestic cancer drug developer, extremely important --es in the oncology mart market. just the pharmaceutical industry, you have tons of --ulatory changes and eight an economy that is showing signs of slowing. it has been a boom time for this economy. what is your general assessment of the economy as we -- as everyone here is talking about the increased tate -- trade tensions between china and the u.s., how does that impac

paul: good morning. i am paul allen in sydney. you are under one hour away from the market open. >> good evening from bloomberg's global headquarters in new york. i am kathleen hays. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this friday, president trump turns up the trade war heat. he says while he is dangerous and may have to be included in any talks with china. to fall ass are set investors seek safety. the yen strengthens. yields dropped to their lowest since 2017. india shifts further to the right as narendra modi celebrates a dramatic victory. he must fix the slowing economy and the looming jobs crisis. kathleen: after a quick reminder of how u.s. stocks ended the session, you can call it a couple where me. the trade war continues to escalate, affecting tech investors. preliminary members. small-cap stocks getting clobbered. you can see the damage that was done at the top of the board. dow jones industrials moving 1.1%. s&p a little bit worse. 1.2%. 20.22, the level there.

paul: i am paul allen in sydney.moil from the trade war continues to spread, and commodities and crude prices retreat for a third day in a row. belowe seen wti slipping $61. this even as oil was spared from china's latest target list. david stringer joins us from melbourne. u.s. oil was bad, so why are shipments likely to be a casualty? david: good morning. this is a really interesting example of those materials, those centers that are feeling the chilling impact of the trade tensions even without specific levees. as he mentioned, no specific tariffs on u.s. crude from china. what we are seeing is the flow of cargo from the u.s. to china has been throttled. china was the top asian buyer now,ously of u.s. oil, and it really you dwindled. it looks like refineries are pretty concerned that eventually, they could get dragged into this dispute. they don't want to be caught out if oil becomes a target. through of u.s. crude march dwindled to 1.6 million barrels from about 60 million barrels in the preceding six months. one

paul. paul: thanks very much.is company will find ways to keep its lead in the smartphone and 5g arena. in an exclusive interview with he cold us how the u.s. ban will impact china's largest tech company. the u.s. manages its own companies. the u.s. is not the international police. they cannot manage the whole world. the rest of the world decides whether they should work with us based on their own business interests and positions. if companies do not want to work with us, it is like a whole in the airplane. the airplane is still able to fly. of the chips we have been using, half are from u.s. companies and half we produce ourselves. if the u.s. imposes further restrictions on us, we will reduce output from the u.s. and use more of our own chips. if american companies have permission from washington to sell to us, we will continue to buy from them. >> what exactly have you put in place in terms of contingencies? we might have contingency plans for the core of the airplane. the engine and fuel tank, but we may not h

paul: welcome to daybreak australia. i am paul allen. shery: i am shery ahn. kamaruddin. sophie we are counting down to asia's major market open. paul: here are the top stories we are covering. the dollar strengthens as scott morrison cools off the win. they are seem as the better economic bit. thes in india, suggesting ruling party could get a majority. a rare rebuke, toyota criticizes president trump on auto tariffs saying its massive investment isn't welcome in america. you looking att the markets, we saw u.s. stocks falling for a second consecutive week. the s&p 500 falling for the first time in four days, tech stocks taking the brunt of the selling last week as we continued to see trade tensions around china and huawei. we have chipmakers feeling the pressure. the nasdaq was down 1% as we see headlines around the band of why way into the u.s., not to mention steelmakers were feeling the downside pressure as the president removed his steel and aluminum tariffs on canada and mexico. look at what wti is doing, in the last session falling toward $62 a barrel. crude is gr