ramy: good friday to you. i'm ramy inocencio. over the next hour, we will be looking at the action on wall street and how it will play into the asia-pacific trading day. the fact that china decided not to release quantitative measures in terms of retaliation meant that lulled investors and push them into the market. let's take a look at how markets closed on the trade. they ended surprisingly in the green. the dow was up .9%. the s&p 500, as i mentioned earlier, was at its highest since february 1 with that increase but the nasdaq, 1.4% rebound. that's a record high, also the biggest jump since june 1. let's open up the boards and take a look at commodities. just a fraction of a percent down. we did see a spike of .7% yesterday off the release of the new round of tariffs. the commodity index fell, rebound of .7%. new york crude along the flatline. 2.85%. year unchanged at vibesa lot of good spreading into the asia-pacific. we have been here before. a low and the trade war. -- a lull in the trade war. we are off to a strong start,

ramy: and from bloomberg's global headquarters, i'm ramy in new york where it's just past 7:00 p.m. lawmakers weigh the seven-year ban. malaysia's missing money. an arrest over the one mdb scandal and he could be charged later today. good morning, evn. good morning to our asia pacific viewers. taking a look at where we ended the u.s. markets here. what goes up yesterday in terms tech did go down today. the trade fog of war, for example, what's happening with z.t.e. being allowed to do some business in the united states. we have a lot of negativity weighing on the china side of the trade, tit for tat with china. yvonne: u.s. stocks closed a little too early to react to news on zte. perhaps asia can get a boost and at least the company can resume business operations for a movant or. we'll see if traders can continue to listen to what the pboc governor has to say. ramy: the yuan strengthening a little bit. we'll analyze that late they are hour. let's get a quick reminder where we end the u.s. market. it was red along our major market bus the s&p 500, half of the sectors still in the gr

ramy: u.k.r theresa may is now battling to stave off a full-blown crisis after three ministers quit within 24 hours to protest her soft brexit plan. kathleen hays's hair with the --est -- kathleen kate kathleen hays is here with the latest. 24 hours ago, view was that theresa may was doomed. can chief survive the year -- can she survive the year? -- last week on friday she got the deal for a soft rights it plan. brexit plan. then we heard that david davis was stepping down. then the foreign minister of london stepped down. theoday was supposed to be big lap in parliament. presenting the plan and saying, i have done it. and it has turned into a defense of a plan with a lot of pushback in parliament. let's listen. will take back a troll of our borders, our moneys, and our laws. -- take back control of our borders, money, and laws. the hard brexiteers don't like it. this has been one of the biggest preventing the, u.k. from even presenting something to the eu. ontish producers will follow rules. th

ramy: fair point.sident for international economic affairs for the national association of manufacturers. thank you for joining us. . you can get a roundup for the stories you need to know to get your day going on this edition daybreak.rg you can go to a dayb on your bloomberg terminals if subscriber.omberg you can also customize your settings so you only get the news on the industries and the assets that you care about. this is bloomberg. ♪ that you care about. this is bloomberg. ♪ ♪ ramy: i am really inocencio in new york. haidi: and this is haidi in sydney, you're watching "daybreak: australia." pollution, to tackle and one solution may lie in the nation's own backyard, deep within the world's largest shale reserves. as they am back on their ambitious 2025 modernization program, we take a look at how their new technology will drive china toward its own u.s. style shale boom. >> china needs natural gas. propelled by president xi jinping's pledge to reduce pollution, natural gas use skyrocketed.

ramy: i ramy inocencio in new york.irst trading day since global stocks launch their worst half. currency has posted their worst quarter ever since 2015. all of this battered by escalating trade war concern and weakness in china. let's get more with james chino. thanks for joining us. heading to equities, i see you are going to be slightly underrating into the second half of 2018. think things will get worse before it gets better. this week, we're going to have 26, --, trade tariffs on july 6, which will create choppy conditions. i think investors have to brace for much more turbulence, at least in the weeks ahead. i think it's sensible to be cautious now, still underrate markets and these choppy conditions in the weekends to come. ramy: let's parse this a little more and hop into the bloomberg terminal. shares,ntioned, e.m. they have fallen the most its 2015 this quarter. do you see this finding any respite for those folks in the em space or as a strategist, which you provide -- advice folks to get out and go summer el

ramy: i am ramy inocencio. over the next hour we will look at all the action last week on wall street playing into the asia-pacific trading day. you remember on friday we did get the blowout number for second-quarter u.s. gdp, but that was not what was propelling the markets down. the s&p 500 down .7%, the worst in three weeks. it was earnings. you can thank twitter for friday, the share price just tanking because it missed in terms of the subscriber count, down one million. the nasdaq down 1.5%. there could be some respite for this because looking ahead, apple does report and there is a lot of hope that its market cap might push the one trillion market, which would be the first time ever any company would do that. haidi: much-needed support for the tech sector. bank of america merrill lynch said it stopped buying coal stocks through what happened to facebook is peaking in those stocks. those stocks, go along for emerging markets, that is the recommendation. in asia, we are looking ahead to major market open. t

ramy: i am ramy inocencio in new york where it is 6:30 p.m. first word news with paul allen. paul: thanks. president trump has repeated his demand for higher order -- higher oil production. he told fox saudi arabia will have to raise up even as the white house backed away from earlier tweet saying he persuaded the kingdom to pump more crude. the news agency and saudi arabia said the two sides discussed supply and demand but didn't make any results. the left could win in mexico for the first time in decades. he seems to be heading for a landslide victory in a popular revolt against entrenched corruption, crime and poverty. they could win a majority of other houses of congress. the campaign was marred by violence with 100 politicians murdered. merkel's coalition is under fire. offer --orse the threatened to turn away some asylum-seekers at the border. they revived doubts about the coalition's ability to survive. the china merchants group is teaming up with london-based center kiss and another beijing group to launch a tech investment fund. the n

ramy: i am ramy inocencio where it is 6:30 in new york.ake a look at stories making headlines in first word news. president trump rounded off a second leg of his european tour by naming the european union a of thef the -- a foe united states. he considered them a potential enemy. trump has lectured germany about buying gas from moscow and chastised the u.k. over its brexit strategy. mr. trump: i think the european toon is a foe, what they do us in trade. you would not think, but they are. russia is a foe in certain respects. china is a foe certainly. that does not mean they are bad. it means they are competitors. ramy: china has reiterated his opposition to a trade war saying there can be no winners in a fight between the world's top two economies. state councilor said china does not want to fight but will not be pushed around. sign -- president trump plans to additionalffs on an $200 billion of chinese goods and beijing will respond. >> there will be no winner from winner from a trade war, only a lose-lose outcome. china doesn't want a tr

ramy: from bloomberg's global headquarters, i'm ramy inocencio. the u.s. clash at the wto and washington threatens sanctions on nato ally

ramy: that is right. to see it is still able to continue on, despite what is happening with the trade tensions that are rising here. it will be interesting to see what happens in the third quarter and fourth-quarter if these tariffs do take effect. china's biggest trade partner/south korea, china, singapore in particular, if there is any weight that will take effect. yvonne: we will see how singapore trades in just about an hour or so. openll head to the market in tokyo, seoul, and sydney. >> rising for a second day, over 1% so far. discretionary leading the way. --korea, chipmakers caps on chipmakers samsung. samsung biologic on the back as the korean ssp says the company deliberately violated accounting rules. it is gaining .1%. we do have brent losing and oil set for a weekly drop, ready to boost output. after the singaporean gdp numbers are out, we have seen some move in the seeing dollar, 1.36 handle, and we have the seeing dollar looking -- sing dollar looking weaker. the head of china's june trade

ramy: i'm ramy inocencio. to the viewersng across the asia-pacific. looking back where we were over the past 48 hours, we got great non-form -- nonfarm payrolls. the bigger issue here is donald trump really did go ahead to clinch those $34 billion in tariffs on china. he is saying another $16 billion could come through. all told, $550 billion. those are big numbers that investors will be wondering on how this might impact them. haidi: the psychology of the market reaction is interesting. you had a session of gains, the tech sector dominating. asian stocks bouncing off the lows, but i like this quote from j.p. morgan saying the whole traits verio is like chronic back pain. you might forget about it for a while but sooner or later it will come back, and investors will be reminded of the situation at hand. ramy: let's get a quick reminder of the markets. the back pain wasn't so painful if you see the close on friday. look at the dow, up .4%. the s&p was up nearly .9%. on the week these were the best weeks in the past month or so for the nasdaq, up 1.3%.

this is bloomberg. ♪ ramy: this is "daybreak: asia" and i am ramy inocencio in your.k latest headlines. cathay pacific may cut jobs at its overseas operations in its latest attempt to get back to profits. they are discussing the consolidation of overseas sales, marketing, and freight operations. it has more than seven at a 50,000 workers. -- 750,000 workers. petrochina -- petrochina says net income jumped between 107% and 122% from a year ago. profit at roughly $4 billion. bloomberg says that will be the highest annual results since the second half of 2014. yvonne: securities fall overshadowing gains in the wholesale arm. revenue rose at the company when the company announced a new buyback. they are facing weakening sentiment from wheat -- retail investors at him. -- a drop in 6% lending income. the bank says net income declined to $2 billion through june but it is still ahead of its for your target. japan's is the first of three mega banks to report its results. games and movies keep sony's earnings on target. we go to tokyo to find out what to expect. this is bloomb

ramy: and i ramy inocencio.growing about the toll of the higher borrowing costs on the local economy in indonesia. our policy editor is here. so time for a pause, apparently, after the aggressive rate hikes? they had rapid successive hikes, in less than two months, and yet, the currency has continued to weaken. there is a terrific story on bloomberg. currency or coconuts. in other words, a continues to weaken, and there are concerns about what these higher rate will do, and now they are seeing keeping the rate at 5.25%. let's jump into the bloomberg, on bloomberg library, one of g tv ones.e of our there are broadly some stabilizing, but it has gotten a bit weaker, and, of course, the governor said on july 11 that the rupiah depreciation is under control, signaling he probably does not want to hike again. nevertheless, there is some question about that. and finally, indonesia and businesses are facing a double whammy. their costs are going higher because their currency has weakened it so much, and if you are grow

ramy: what is next?d it clear the last hurdle but they -- there are still a lot of small things that need to be addressed. they need to regular -- right create a regulatory body to write off all these smaller by logs that are the smaller details. of thehat happens, kind local municipalities and cities that want to host a casino resort, will be able to put out a request for proposals of the companies that want to participate in building one. reportera consumers lisa, thank you very much. let's bring in david bonnet, partner at delta state hk limited. he has great experience with the casino world. one interesting thing come i want some clarity on that, this could be the biggest ir but with the smallest casino. help me understand this. david: the way that the light is actually written -- the law is actually written is that the 3% total of gross floor area really favors operators who build bigger. it is based on the proportions of the total casino area to the total building area. consequently, you have the j

ramy: from bloomberg's global headquarters, i am ramy inocencio in new york. president trump backtracks from his controversial comments on russia. " inays he, "misspoke helsinki. goldman sachs conference he will succeed lloyd blankfein in only his second powershift as a listed company. all right. a very good morning again to you, haidi, and our viewers across the asia-pacific. it was interesting to see what the drivers were today, namely earnings as well as fed talk from jay powell, talking to congress in a semiannual report. bring markets higher, instilling confidence, especially at a time when there is negativity regarding the u.s. in china. haidi: analysts saying you cannot really blame markets. they have been schizophrenic given the conflicting factors we are seeing. you strip away any new headlines on trade for geopolitics, and this is what you have, roughly speaking, a pretty positive tone of sentiment we are seeing. in the numbers. let's get to those with the u.s. close. looking at those, green across the board. a pretty broad-based rally when you look

ramy: i'm ramy inocencio in new york.heck of the this flash headlines. nomura is falling the most since november 2016 after net income tumbled 91% last quarter to $47 million. the brokerage lost $70 million outside japan and less than two years after turning profit. the main culprit was europe. revenue fell across the board. business at home suffered from trade war jitters. they lost money for the first time in two years. u.s. cannot say how the china trade war will turn out, however the renegotiation of nafta and the auto tariffs remain central themes, and they will cause significant turbulence in the markets for years to come. yvonne: the hp rose in sydney to sell on short oil and gas assets in the u.s. to bp for $10.5 billion. it will add to operation in the permian basin. unitwill share -- sell its for about $300 million to complete its exit from the shell sector. the deal is expected to be completed by the end of october. ramy: nissan is end a -- adding to the global gloom. first-quarter operating profit 1.5%ed to $9

this is bloomberg. ♪ is is bloomberg. ♪ ramy: i am ramy inocencio in new york.i am haidi lun in sydney. you're watching "daybreak australia." anywhere but america. that is the message china is sending to companies, urging them to boost imports from countries other than the united rates. our next guest says the trade from should means businesses are scaling back. joining us now from austin, texas is roger baker, senior vice president of a geopolitical intelligence platform and publisher. we talked about the difficulty for investors to navigate all the uncertainty. there has been changes in attitude and positions within 24 hours depending on what the president tweets and how beijing response. you are seeing a paring back when it comes to investment sentiment. about there is a concern expanding operations, about trying to think about the this set of how trade frictions will play out and how it may have longer-term implications even if they come to some form of resolution with each other. haidi: right, and you can see the actual sort of on the macro front, the impac

ramy: and i am ramy inocencio in new york, just past 6:30 p.m.st word news with jessica summers. jessica: the yen strengthened on reports that president trump is preparing tough new tariffs on china that could be worth up to $200 billion and a list of targets may be released any moment. that would ratchet up tensions between the two biggest economies. financial markets have shrugged off the initial tariffs. u.s. stocks have been up since friday's position. tesla is to build a new factory in shanghai, its first plant outside the u.s. making it the first automaker in china. tesla says construction will begin soon. it is aiming for production of .5 million cars annually. shanghai authorities say the plant will be the biggest foreign investment in the city. >> the biggest question right now for investors, bulls and bears alike, is how they are going to pay for it. i think you will see something similar to nevada with a partner like panasonic. i am not saying panasonic will be the partner, but you will see someone. those details will be announced over

ramy: thank you.ing the markets ahead of the shifting gears, and ugly wednesday for detroit's big names with shares plunging as trade and general motors slashed its target and fiat chrysler followed after lackluster sales in china. ford announced a costly restructuring. with u.s. considering tariffs on all imported cars, the industry faces and even tougher future. craig, its focus on general motors because we are seeing the first pain and evidence in regards to the rising tariffs on steel and aluminum. >> that's right. i feel like we have felt this was coming. you saw you and aluminum prices tick up when the trump administration said that these tariffs were going to be put in a place. it didn't actually have to be implemented for the prices of the raw materials to go up. we started this year with ford warning about this as eating an expected headwind for them. were notat chrysler talking about this being an issue. up.really so prices go you have gm now which began talking about being consistent with l

this is bloomberg. ♪ ramy: welcome back, i'm ramy inocencio in new york.aidi: and i'm haidi in sidney. the bank concluded its meeting on tuesday there were talks about massive monetary stimulus programs a lot of economists saying even talk of an adjustment is premature. we're joined by chief market strategist evan lucas from melbourne. great to have you, evan sit premature to start talking particularly as we get this kind of jolting effect of central banks plarkly here in asia, trying to balance, to react to some of these trade war tensions. trying to react in spots of inflation here and there the bank of japan mandated very clear, they're nowhere near that 2% inflation target. >> exactly. it's k that's the way going to go. we are getting spots of inflation that is actually showing sustained signs, it's actually happening in the u.s., not happening unfortunately in the asian region and you're right, japan is so far away. they've had that 2% mandate for going on five and a bit greers and they haven't got within touching distance, let alone distance to give

ramy: and from bloomberg's global headquarters, i'm ramy in new york where it's just past 7:00 p.m.weigh the seven-year ban. malaysia's missing money.

ramy: i am ramy inocencio in new york. it is just past 8:00 p.m. on wednesday.a resumption. beijing says washington's attitude is catastrophic for the wto. reviving -- they agreed to pay $400 million in escrow. yvonne: there only seems to be one story in town, which is trade. we side come full circle with the global equity route. we are all watching china and how things react here. not just with the stock market, but the renminbi, once again resuming the slide. ramy: crossing the 6.7 barrier. last time we checked it was 6.72. in terms of u.s. markets we did see equities take it on the chin, after they were able to digest of the $200 billion in extra tariffs from china. be watching ahead to see what is happening in asia-pacific, to see if it continues that trend. yvonne: let's go to sophie kamaruddin. looks better than yesterday for sure. better than yesterday. u.s. futures also on the up. atength for the yen, trading 112. this after the worst drop in the currency for three and 1/2 months. rising 0.2. on investmentn seeing a recovery. the likes of ing, bank of am

ramy: i am ramy inocencioramy:.an see a picture of freedom tower in the financial district of new york. you can see on friday the s&p 500 was up .9% where technology tensions.de war we have $34 billion triggered against china from the united states and $16 billion more sometime in the next two weeks possibly. yvonne: potentially things will get ugly from here. let's get to first word news and get you caught up with the investment world. rosalind: asian equity futures are pointing to a generally positive open. they are assessing shock for the u.s.-china trade war. mainland stocks have taken a beating in the lead up. president trump has threatened to extend the tariffs to cover half a trillion dollars of imports. the chinese premier said the trade war benefits nobody. >> we are not complacent on the risks. proof that the trade war would be back for the economy, starting with the u.s. by the way. the first victim would be u.s. jobs, u.s. workers and we hope that doesn't happen. rosalind: one of the two people thought o

ramy: thank you very much.ning to after the bell earnings as well as the wrap up for the s&p 500's fourth monthly gain. one of the standouts in extended changing, moving higher after profits. >> big beat on the profit, and that is a positive for the company with his head trouble stabilizing. we are seeing shares move higher. asond quarter revenue beat the rising popularity of its personalized news service helped sustain growth. sales jumped to 3.9 billion u.s., the sixth straight quarter of revenue growth. let's see the pattern it has been on. compared to 72% a year earlier. we have seeing revenue growth and the percentage of mobile revenue in that growing as well. thes move on to one of after our companies. we are not seeing this move much. it is been a challenging year. they narrowed their forecast going forward. they did boost outlook having to used gage inely the hospitality industry. haidi: in terms of the regular session, july turned out to be the biggest monthly gain for the s&p since january. tech also

ramy: from bloomberg's global headquarters, i am ramy inocencio in new york. president trump turns up the heat again, saying the wto treats america unfairly and must change. the superstar quits nike after 24 years in a deal reportedly worth $300 million. all right. good morning, yvonne, and to our asia-pacific viewers. it has been a really interesting trading day in the united states has restarted started firmly in the red off of all the trade tensions, trade fears. the stocks were down. msci asia-pacific also down. we thought it would be a negative day, but it was a session high. fangs really lifted the boards. to the rescue once again. when it comes to asia, we saw pretty's deep losses -- pretty steep losses. ramy: let's go ahead and flip up the boards to show you exactly where we ended the u.s. trading day. about .3%. up by it had actually opened down by about .7%. let's go to currencies because we are seeing what is happening in terms of the rising dollar with those trade tensions. the bloomberg dollar is marginally down, but it has been inaccurately risin

ramy: i am ramy inocencio in new york.sian equities look set for a weaker open after a decline in tech shares led most u.s. stocks lower. president and a ceo of the international assets advisory. he joins us from orlando, florida. good to speak with you here. as our asia pacific investors start waking up and taking stock of what happened today, it was a different direction. earnings clearly taking center stage at least for today. >> earnings absolutely later in the day took center stage. that is a good sign. i would rather see the market driven by traditional fundamentals instead of geopolitical hyperbole. with regards to earnings, bank of america came out today. it was an earnings surprise of more than 11%. ahead toof looking where bank earnings might be going as well, earnings per share, the stock rises, where do you think these are headed? assets.national cautiously optimistic on the bank stocks and all financial stocks. in an environment where we have seen interest rates rise and expect interest rate to continue to ris

ramy: that is right.e taking a look at tom ford, an analyst, talking more about what is happening with technology and the greater technology space after apple's earnings. aboute roberto talking the fed decision, reaction and bonds, as well as global federal banks. haidi and i will be back on the other side of the break. this is bloomberg. ♪ phones have made our lives effortless. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. haidi: welcome to daybreak asia. the top stories, asia-pacific markets are set to rise after renewed optimism. apple, a

ramy: i want to piggyback off of that. you agree they are desperate for to find another outlet for trade, especially with this week with china as well as the e.u. summit? is there a way that jean-claude juncker can try that open a bit wider than they might not have been able to if the u.s. and donald trump had not in their? ere?een th you have seen the making and signing deals. we saw them in tokyo and seoul. the e.u. seems to be the only major center that is essentially entertaining additional talks on this issue because most of these other countries are very concerned about chinese protectionism. trump has been reading this and made enemies with canada and the e.u. and japan but they recognize the same issues about china president trump is talking about. what you have seen with the e.u. is they are willing to tie one-off deals but not a market opening access the e.u. fundamentally wants. i don't think beijing wants to give that. the likelihood of a bigger deal people are talking about remains relatively remote. in terms

ramy: u.s.d chairs jumped .% after international is considering an offer for parts of the belgian company. that will be there oldest -- boldest move yet. there talking to advisers about teaming up with partners or increasing its current state. a 50% jump in first-half profits as its operations benefited from higher crude prices. that would mean that earnings of over $6 billion. says its midstream and downstream segments maintains a good level of efficiency. ramy: up next, it is getting real. the trade war is finally showing up in numbers across the world. we will take a look at the fallout so far. this is bloomberg. ♪ yvonne: sunny hong kong here. getting sun for a break from the rain. we are 30 minutes away from asia's first major market open. these rallies continue to build up thanks to the stimulus plan in china. ; 30 p.m. here where markets closed up nearly half of a percent. not as clear or as beautiful as where you are. did see a pop. the s&p 500 closing at 2820. its highest since february

ramy: let's see if that actually happens.egist joins us with the vice on surviving turbulence in the market. this is bloomberg. ♪ ramy: i'm in new york. haidi: i'm haidi in sydney. more watching "daybreak: australia." says -- tolds bloomberg that she is more concerned about equities. >> there has been a notable rise in interest rates. the flattening of the yield curve has not been good for fixed income portfolio investors unless they have been very careful and cautious, looking for opportunities in credits. i think it will be increasingly difficult for fixed income investors to do well. now is aining us former global markets chief gore the number one ranked u.s. government bond strategist for 11 years. mantle to be holding. i want to start off with a chart from our library. comes at a time when we have seen speculation about how the bank of japan will change the yield curve control policy. we saw this jump in the japanese 10 year benchmark yield and the reaction across europe and chinese bonds. , we have talked at length abou

ramy: interesting. see it as a balance between -- trade war pessimism and macro economic data pessimism. . you guys said that it still it still looked healthy for the region recently. for asia, that is right. china's growth looks like it year.e around x .5% this the u.s. will have a short-term boost. we think growth will be close to 3%. to the extent we got the two biggest economies driving demand for the region's outputs, that is a good scenario. we see this ratcheting up other trade tensions, which feeds through to uncertainty. that could put a damper on what otherwise is a pretty good scenario. you are right. the baseline still looks pretty good, but in our view, the risks have risen and shifted to the downside, led by the trade tensions. ramy: i want to push this also into emerging markets. you are on, bloomberg television, talking to us about how investors and discriminating, and they don't do a blanket pulled down the region like they did in 1997. right now, since it has been about a month, do you

ramy: definitely.e're calling it the fault of of war.he fog a lot of people don't know what is happening. how donext 30 seconds, you benefit from the trade volatility? >> if you want protection, we think the best way to do it is via put spread's were you can benefit from what is called skew as well as the higher volatility . the second way is to have a systematic approach to selling premium that takes advantage of these elevated prices for options we see right now because of this uncertainty. there's some really good yields we can get by following that approach. ramy: great stuff. leave it there. thank you very much. you can get a roundup of the stories you need to know to get trading going in today's edition of "daybreak." this is bloomberg. remy: welcome back. i'm ramy inocencio in new york. paul: you are watching "daybreak: australia." dell technologies going public again, five years after a buyout. the world's largest private tech company will return to the markets by acquiring its trading stock, d

this is bloomberg. ♪ ramy: welcome back. i am ramy inocencio in new york.vonne: i'm yvonne man in hong kong. let's get a quick recap of the u.s. market close, where stock balls took advantage -- stock bulls took advantage of a lull before trade worries push stocks. a lot of optimism before this announcement. sue: a lot of market watchers that have said if you x out the trade war top, the market moves higher. let's go to the pepsico story, because this grabbed the optimism of the bulls. you saw pepsico exceed expectations. this has been a badly be enough stock. soda stocks have been hurt by americans' move away from sugar. it was the move away from salt that caused pepsico to be one of the big movers. analyst,rom an including they continue to have strong performance in macau. a downgrade on autonation concerns that americans are moving away from buying cars to sharing cars. pg&e has continued to be under pressure on concern it will be found liable for wildfires in california. the biotech and tech stocks were under pressure. ebay under pressure on concern of

i am ramy inocencio.e will be looking at how the action on wall street and across the united states will play into europe, asia and -- pacific trading day. it really is a different day depending on what kind of news comes out. especially with u.s. trade tensions. different directions, especially for the markets. we saw the nasdaq as well as the s&p both down. the dow actually ended up higher . you can see basically we ended mixed here. -- ins, good news, in the terms of u.s.-china trade war. the imf is saying the tensions could derail global demand and its rebound. earnings, definitely in the driver seat. the s&p 500 pushing -- push and pull because financials with the winner of the bank of america news. energy was a laggard because oil falling. wti as well as brent both falling about 4%. flipping the boards, there were things after hours we want to take note of. most specifically with the nasdaq. take a look at that. it is the outlier in terms of its fall. .25%.sdaq down that is what because of what happ

ramy: that's right.going to be looking at some really interesting guests coming up in just about 10 seconds. the senior economist, eric when eric, talking about the markets and what jay powell said in the semi-animal reports. this is bloomberg. ♪ ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. haidi: 9:00 a.m. in sydney where we are live from bloomberg's headquarters. i am haidi stroud-watts. gains after the open -- rate hikes will be gradual for now. a recovery in tech listed the nasdaq to a new high. they are shrugging off this morning headlines. ramy: from bloomberg's global headquarters, i am ramy inocencio in new york.

ramy: thank you very much.hina has said that it will not implement tariffs ahead of the u.s.. that is despite a deadline coming out hours earlier. it says it will not fire the first shot. joining us now is sarah mcgregor. the u.s. expected to do? >> the u.s. is going forward with its plan to put tariffs on chinese goods on friday. i think it is important that china decided to reschedule its retaliation and not necessarily put it into place right away. waiting for the announcement is something that we are thinking that we really want to see the u.s. decision come down here. as we all know, the trump administration has retreated from trade threats that it has made in the past. there is no reason to believe that the chinese tariffs will not take effect. everyone was wait until that decision is made before we see the rubber hits the road. hourswe are still 24 ahead of when that will happen here. german auto industry lenders are making the case to the white house on a trade feud will cause irreparable it -- damage t

ramy: i am in new york.with us from austin, is jason, president of prestige a book onnd author of financial markets in the economy. we talked about the fed in the last section. let's move ahead to what is happening with the bank of japan. day are holding their two policy meeting. folks are not expecting much but there is a fear from the market that yield curves control, action might happen. what are your expectations? jason: the term being thrown , not is a tweak necessarily a major change, more of a minor adaptation in terms of quantitative usage. yvonne: what would those tweaks entail? do they need to raise targets, or is it about etf buying? jason: i am not sure which one we will see, but i think the etf the one theybably should focus on. this is the debate. will they raise the tenure target or not? -- itne we get, it is reminds me of what happened with the european central bank where there is an expectation would there be a change with the bond buying program? one was changed and the change of rate was r

ramy: coming up, cars crash. u.s.utomakers tumble amid tariff fears. ♪ markets open in about 90 minutes' time. a little bit of positive to video as we ended the session lower yesterday. net gains in oil and across commodities as well. energy and materials today. i am in new york where it is 6:30 p.m. and you are watching "daybreak: australia." let's get to first word news. >> president trump has reached a tol with jean-claude juncker avoid a transatlantic trade war. they agreed to expand imports of and to gas and soybeans lower industrial tariffs on both sides. they will hold off another tariffs while negotiating. >> we will not go against the spirit of this agreement unless either party terminates the negotiation. we are starting to get know she ancient -- the negotiation right now. we know where it is going. we are making progress on other issues. >> mike pompeo faced anger in the senate at the start of a hearing on trump's policies. there were serious doubts about u.s. strategy. decisionfended trump's to meet with

of journalism at the american university of beirut he's joining us from there and rami it's amazing isn't it how some people presumably one if not more of the blockading cult countries are prepared to go to such extraordinary lengths to try to whip up sentiment. well it tells us several things it tells us the desperation of the islam saudis and others who do this kind of thing it tells us their lack of commitment really to the truth in the situation and their embracing of of make believe worlds but it also tells us a lot about how things work in london and in the western world where media fact and propaganda on social media and just a photo on twitter or something is worth more than anything else the tragedy is that everybody who's been involved in this kind of media propaganda which includes some lies some exaggerations all kinds of terrible things that truthful journalists like everybody loses when they do this the degradation that's been done to the image artists of the bahrain in the junction media isn't particular has been striking and i should add unfortunately some of the loc

rami says that the syrian government will win what's the thinking now. israeli government doesn't always make wise decisions but i think one wise this isn't they made was not to intervene of the syrian civil war we provided two manito an aid for medical aid we have meant to be and i think we're going to continue to see this we will not be interfered intervening in the syrian civil war we will however maintain our security problems that is again to make sure the the women said before game is kept the buffer zone will be and will be free of any military forces will be limitation forces and that we will see in radians on the. any when there is was a border. and only as the been communication between israel and jordan in the light of the humanitarian crisis in indonesia i'm not sure if that is about it but as you know it in our office is jordan just a few days before this collision and it was about partly about the southern front of this southern syria i think it is it is involved in all of us and i think any understanding will include the israelis so more s

been talking to him on this issue so rami. just getting back to where jordan stands in all of this and how they are trying to address this growing problem on their border with syria. jordan has been through this you know half a dozen or a dozen times in the last forty fifty years in the middle east being a kind of a shock absorber in between these big countries that are battling with each other or internal civil wars having to accept refugee flows that sometimes contribute elements to their countries sometimes create great new pressures they know exactly what they're doing what they want is to make sure that any refugee flows are accompanied by huge amounts of international financial aid that allow the country to address those needs without taking away things from jordan they want to make sure that any refugee presence in the country does not diminish the opportunities for jordanians in terms of water access jobs and things of that nature and they want to expand their strategic capabilities in the region to make themselves mor

religious establishment in saudi arabia and that's exactly what's he doing and still continuing to rami is this part of the same pattern we've seen over the last year which is basically targeting prominent. outspoken clerics in saudi arabia yes clerics journalists woman business people and independent thinkers who give a viewpoint that is not in line with the government's views whether it's about israel or about the u.s. or yemen or qatar whatever it may be and the strong striking thing about what. had been said a man is doing is the vast scope of the reforms as he calls them the reforms that he's trying to do and they are genuine reforms in many ways especially in terms of more private sector involvement in the in the economy and things like that but it's so comprehensive that it is has put control of every aspect of life media politics military economy religion social norms every aspect of life is in the hands of the crown prince so this is following the pattern of assisi in egypt and gadhafi in libya before and so dump listen and this is troubling because saudi arabia never had this

rami says that the syrian government will win what's the thinking now. israeli government doesn't always make wise decisions but i think one wise this isn't they made was not to intervene of the syrian civil war we provided two manito an aid fight medical aid we have been intervened i think we're going to continue to see this we will not be interfered intervening in the syrian civil war we will however maintain our security problems that is again to make sure the the government the seventy four game is kept the buffer zone will be and will be free of any military forces will be limitation forces and that we will see in radians on the. any when there is was border. underneath as the been communication between israel and jordan in the light of the the humanitarian crisis in indonesia i'm not sure that it's about it but as you know it in our office is jordan just a few days before this collision and it was about partly about the southern front of this southern syria i think it is it is involved in all of us and i think any understanding would include the is

rami says that the syrian government will win what's the thinking now. israeli government doesn't always make wise decisions but i think one buys this isn't they made was not to intervene in the syrian civil war we provided two manito an aid fight medical aid we haven't intervened i think we're going to continue to see this we will not be interfered intervening in the syrian civil war we will however maintain our security problems that is again to make sure there's the government the seventy four game is kept the buffer zone will be and will be free of any military forces that the limitation forces and that we will see in lady ns on the. anyone there is will support. underneath as the been communication between israel and jordan in the light of the the humanitarian crisis in indonesia . i'm not sure that is about it but as you know. this is jordan just a few days before this collision and it was about partly about a sudden from is this sudden syria i think in israel is involved in all levels and i think any understanding will include the israelis so more

the religious establishment in saudi arabia and that's exactly what's going and still continuing to rami is this part of the same pattern we've seen over the last year which is basically targeting prominent. outspoken clerics in saudi arabia yes clerics journalists woman business people and independent thinkers who give a viewpoint that is not in line with the government's views whether it's about israel or about the u.s. or yemen or qatar whatever it may be and the strong the striking thing about what. had been said a man is doing is the vast scope of the reforms as he calls them the reforms that he's trying to do and they are genuine reforms in many ways especially in terms of more private sector involvement in the in the economy and things like that but it's so comprehensive that it is has put control of every aspect of life media politics military economy religion social norms every aspect of life is in the hands of the crown prince so this is following the pattern of assisi in egypt and the duffy in libya before and so dump him saying and this is troubling because saudi arabia never

a senior fellow and adjunct professor at the american university of beirut and welcome to you all rami if we can start with you some context here first to what extent does southwest and syria's pivotal location mean that any military offensive in that region would have had stakes the transcends syria's civil war. that's a very strategic area in terms of the relationship between lebanon and hezbollah and syria and israel and jordan and iran all together they are interested in this area and the russians of course behind the syrian government the russians are trying to prevent wars regionally but all these other actors or involved in confrontations and have been involved in wars over the years it's a very strategic area and the golan itself the border area the go on has become even more important now because historically it was southern lebanon and northern israel that was the where fighting used to take place all the time between hezbollah and israel it shifted in recent years to the shebaa farms area which is in between syria lebanon israel and palestine and then it shifted now once mor

idea they've been talking about and let me go to rami and i mean isn't there any concern of a media can confrontation between the compas will have been salmen and the religious establishment which has been one of the keep ella's of the salad dynasty well he has clearly indicated that he is going to change the way the religious establishment the formal one as well as the informal one how they operate and he wants them to operate under his guidance and his control many of them would be willing to do that you know all over the world most religious establishments the formal friday preachers in the mosques are under the authority of the ministry of our cough and religious affairs many of them have their sermons given to them by the government so there's a tradition of religious establishment being kind of quietest and going along with the ruling political authority and they they help each other so there's probably a many in the religious establishment saudi arabia who don't mind going along with the with the government but at the way that he has done it unilaterally cracking down arresting v

religious establishment in saudi arabia and that's exactly what's he doing and still continuing to rami is this part of the same pattern we've seen over the last year which is basically targeting prominent. outspoken clerics in saudi arabia yes clerics journalists woman business people and independent thinkers who give a viewpoint that is not in line with the government's views whether it's about israel or about the u.s. or yemen or qatar whatever it may be and the strong the striking thing about what. had been said a man is doing is the vast scope of the reforms as he calls them the reforms that he's trying to do and they are genuine reforms in many ways especially in terms of more private sector involvement in the in the economy and things like that but it's so comprehensive that it is has put control of every aspect of life media politics military economy religion social norms every aspect of life is in the hands of the crown prince so this is following the pattern of assisi in egypt and gadhafi in libya before and so dump him saying and this is troubling because saudi arabia never h

major failure in yemen ok a major loss in syria so they cannot buy into what he is trying to sell them rami this is someone who lifted the ban on the women driving but at the same time jailed women activists who championed the right for women to drive he took to jail activists prominent human rights activists. but still his his own people say this is a visionary man how do you see him with forma where rust buttin well he very clearly is a man of dynamism he understands that change has to happen for the long term well being of saudi arabia some of his suggested reforms are very sensible in the economic sphere i think and some other areas but the way he has done it this autocratic way is creating probably resistance and also he doesn't understand something that every single arab leader in the last seventy five years has failed to understand which is you can't just open a faucet like a water faucet and you open a reform force it's ok we're going to reform now and we're going to let cinemas or we're going to let drive in movies and we're going to let people have concerts on woman drive but that