of those stories to you live as they break. in australia, sydney futures ever so slightly higher as we of course await the reserve bank of australia'secision later this afternoon. for now, let's get to the first word news with jessica. jessica: a new warning about global growth. expansion in the world economy will decline next year to the slowest rate since 2012. that is because of a deteriorating effect of the trade war. growth is seen at 2.6% this year from.5% next, down 3.2% in 2018. the downgraded forecast for 16 countries for june. china has repeated a pledge to further open the economy, adding it will act to safeguard multilateral trade. the premier spoke ahead of revised negotiations in washington this week. he reports he said the government will work on cooperation and innovation and will protect intellectual property. liu also said measures will be taken to make it easier for foreign companies to work in china. tax rises in japan tuesday. a fundamental government policy, but one that may cause the economy to stumble. the levy climbs from a percent to 10% in an attempt to rein in the world's largest public debt. previous hik

on tuesday, consumption taxes injapan go up from 8% to 10% and also on tuesday the reserve bank of australian and finally rounding off the week on friday, interest rates focuses to india with the reserve bank of india. let's take a look at what impact that will have on the markets. the nikkei has already open and it is down as investors await nervously those numbers from china. this is bbc news — the top stories this hour: there've been running battles on the steets of hong kong, as china prepares to celebrate the 70th anniversary of the communist state. un investigators speak for the first time of their shock and horror listening to murdered journalist jamal khashoggi's final moments at the saudi consulate in istanbul. the government's key announcement at the start of the conservative party conference, was on funding for hospital projects in england. our health editor, hugh pym, takes a look at the details. new money for old hospitals, that is what it is up to. in south—west london, they admit some of the buildings are not fit for healthcare. now they have a new green light for acute hospit

bank of korea's 2% target. jumping to the rba, we will talk more about it later in the show. the reserve bank of australiacted to keep rates on hold for a second straight meeting today after back to back cuts in june and july. in terms of australia's retail sales, that growth is a prejudice low to 2/10 of percent in july. paul: thanks very much. let's get more on what we should be watching as trading gets underway in asia. our cross asset asia editor andreea papuc is here. not a great start in september despite stocks getting cheaper. still not seeing a rebound. andreea: that is right. we know things can turn quickly nowadays, but certainly in asia, strategists are not overly confident that we will get a bounce anytime soon. this is despite stocks getting cheaper. we do have a chart that shows the five-year average for the estimated price of ratio being slow and going down. actually warning of an unlucky month. he points to september as the and month when the s&p 500 having negative returns in the past 40 years. we also have ubs global wealth management cutting its japan earnings growth or cast. in asia,

the reserve bank of australia meets later with most economists predicting the rates will be cut to a

australia topping at the top of the gmm taking a second day down. the reserve bankaustralia saying they are prepared to take a rate cut if needed. 10 years rising. the yield down from six to five basis points respectively. it is all about crude again today. wti hitting a positive down more than 1%. this comes after yesterday's extraordinary day for the oil market with record-breaking moves. i am trying to tie in what we are seeing with the oil markets and the fed. you have to think this will stay this way. what did the high prices mean for inflation? tick higher.of a this has to bode well for thursday when we have a 10-year tip sale as well. nejra: on the global markets, we go back to divina keller to take a look at the indian markets. a second day of declines. does this still had to do with the oil markets or something -- or something else? >> the oil picture is playing its part in today's session. down 0.75%. index the housing is also down. banks have been looking week. -- weak. loansw, we are seeing unwinding. information-technology and pharma are most likely to

have money markets suggesting are we going to see another rate cut coming through from the reserve bank of australiamatt: things very much, juliette saly in singapore with a look at the markets. let's get an update on the aramco attacks. the saudi military has displayed what it claims are parts of iranian drones and missiles, saying the strike on the oil to see in that facility came from "the north." they added the attacks were unquestionably sponsored by sensex. president said new sanctions are .oming -- sponsored by tehran start.s easy to we will see what happens. matt: let's go to riyadh or yousef gamal el-din joins us. after 24 hours of international diplomacy, what can we expect this afternoon? night, it was a dramatic the press conference went underway in the later part of the evening in riyadh and the evidence was presented that suggested iranian sponsorship but it fell short of what many observers would argue should have been a clear-cut accusation that iran was behind this attack. it almost seemed the kingdom was giving itself some diplomatic wiggle room. they don't know for sure where the

more than forecast just ahead of the rbnz decision, which is staying on hold along with thailand today, paul. paul: yes. next week in australia, we have ofery live reserve bank australia decision. phil lowe was speaking last night. for more on that and the rest of the day's first word news, let's get to ritika gupta. ritika: rba chief or philip lowe says he sees a gentle pickup in the australian economy, repeating that policymakers are ready to plant rates if needed to support that recovery. he stopped short of -- the imminent move some have factored in for next week. the aussie dollar on his comments while bets on a cut from the current cash rate of 1% fell. >> after having been through a soft patch, a gentle turning point seems to have been reached. while we are not expecting a return to strong economic growth in the near term, we are expecting growth to pick up a little bit. against this backdrop, the main source of domestic uncertainty continues to be the strength of household spending. sophie: yvonne is checking out conditions for any potential talks for the united states, but there appears little likelihood of a meeting at the u.n. this week. the presi

paul: the reserve bank of australia tomorrow will be a big meeting.ve weakening jobs, prices for houses recovery, gentle turning points. what do you think we will see? jun bei: they will put cuts on the table. central banks are really, don't really have that many choice at this point. economy is tough. they have got twice. we are seeing signs of improvement but looking at it globally because today the economies are interrelated. this fed will continue to cut and the ecb will boost, same as japan. with all of the currencies looking to weaken against the aussie dollar, for our fragile economy we can't have a strong currency. in my view, the central banks, reserve banks are forced to really cut. you forl right, thank joining us. we have plenty more to come on daybreak asia. this is bloomberg. ♪ ♪ paul: this is daybreak asia. i am paul allen in sydney. president trump wants to meet his accuser. in a tweet posted moments ago he blamed a whistleblower for representing a perfect conversation in a totally inaccurate and fraudulent way. bloomberg news deputy m

still ahead, the reserve bank of bank ofier -- reserve australia is going to hold key rates after back-to-back june and july. what does that imply for the rest of the year? paul: up next, asia-pacific stocks are filing u.s. futures lower on concerns about trade talks. we'll talk about the market action -- market ocean -- open. this is bloomberg. ♪ p paul: this is "daybreak: asia ." kathleen: easy money from central banks will keep supporting global bond markets. that's the view of bank of cio, who joins us now. a veteran of 30 years looking at this. did you ever think you would see a world where the u.s. 30 year bond was under 2%, where there was more than $17 trillion of negative bond yields. are the central banks the only thing behind that? rajeev: i did not expect that many years ago. it's truly amazing to see such a quantity of negative yielding debt. central banks are partly responsible. zero,hey cut rates below we expecting for the rate cuts, but the markets are also driving because the market is driven by investors who looking for safe havens and bonds, expecting inflation will remain v

we have the reserve back of australia announcing its rate decision in just over a half hour at the bottom of the hour here. the bankged. this is after back-to-back rate cuts that we saw in june and july. the reserve back has left the door open for further easing while progress on tightening the labor market has been minimal. the banking sector in india, we have a megamerger planned. let's have a look at some of the participants there. they are not liking it. this is bloomberg. ♪ ♪ from the 5am wakers, to the 6am sleepers. everyone uses their phone differently and in different places. that's why xfinity mobile created a wireless network that auto connects you to millions of secure wifi hot spots. and the best lte everywhere else. xfinity mobile is a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy an eligible phone. click, call or visit a store today. >> our top stories this morning. >> when will trade talks resume? the u.s. and china are struggling to agree on schedule as they continue to row over the tariffs. chairman [inau

evening -- the reserve bank governor speaks tuesday evening as market expectations for the next rate cut in australia. let's put the central bank watch in context there next guest, qic is one ofoney managers. beverly morris qic director of rates and inflation dundas from brisbane. can your members such a diverse range of use? -- views. >> yes, last week's rate decision was clearly not unanimous. we had to fed governors who did not want to see that rate cut being delivered last week. on the other end of the spectrum, we had governor bullard who actually voted for a 50 basis point rate reduction. clearly there is a range of views on the committee. our markets, obviously they do not-they will need to discern through the signals. tokets are used to having listen to hawkish and dovish members expressing their views. markets have gotten quite used to who they need to place more weight on in terms of working out the direction of rates. perhaps for jay powell, in terms of talking to the ,verage householder in the u.s. those conflicting views getting put out there perhaps make his comedic asian job more difficult. -- is communication job or dickel. communication task more difficult. p