tv Bloomberg Daybreak Australia Bloomberg June 19, 2018 6:00pm-7:00pm EDT
♪ fall, u.s. stocks president trump remains his heart stands on china trade. great the dow is on his longest slump in more than a year after six straight losses. treasuries rise with the dollar. ranil under pressure as i rejects the potential opec output compromise ahead of friday's meeting in the anna. next but it's a bright future for solar and wind power. a new group -- bloomberg report
sees them generating half of global energy by the year 2050. hello from sydney where it's just past 8:00 a.m.. were 12 away from the open of -- away from asia's market open. how the openok at here on wall street will play into the asia-pacific trading day. it was red across the board, in large part or whole part to what was happening between the u.s. and china. donald trump coming out with yet an additional $200 billion of tariffs on chinese goods after raising it 10% p.m. you can see the dow down one point 15%, six days down, six days in a row. the s&p 500 down .4%, the lowest since the start of this month. the nasdaq also down about .3% but it was pretty much a mild across the board.
we were at lower levels than these numbers you are seeing here, but we did repair some of those losses. taking a look at the flight to polity, the flight to safety, the bloomberg dollar index rose about .2%. by about twoailed basis points. it had been as low as 2.85%. thathad been higher, but retraced a little bit and the japanese yen, we did see that at 09. haidi: it feels like this is a week that investors have set up and started paying attention, perhaps the commendation of not just rhetoric but substance to the mix, doubling down tariffs. taking a look at asia, it's not looking too bad. futures looking mixed, trading underway in new zealand, mild losses there. the bloomberg dollar index the
highest in about a year, very much weighing on the aussie, u.s. for under $.74 the first time in a year on these trade concerns. blackrock coming out in telling us they see potentially a 70% turn on the u.s. over concerns over chinese growth slowing down and the rate differential between the fed and rba. let's take a look at commodities, continuing to get with trade war concerns and just broader concerns that we are reaching the end of this growth cycle globally. the bloomberg commodities index and agriculture index down to 1991.west since january are seeing the likes of iron or taking a black as well. all this feeding into the continued route across emerging askets and the energy space we head to the opec meeting as
well. volatility of highest since may. let's get to the first work news from new york. the philippines in her bank governor has laid out the case for a second straight rate increase. he cited broadening price pressures, tighter u.s. monetary policy and the currency slump. the peso plunged to a 12 year low this week. bond yields are at seven-year highs. he told bloomberg that wednesday's policy meeting will assess ways of reining in inflation which is -- what -- which hit 4.6% in may. perspective, it's lining up to our original anticipation that there will be an increase, but we inspect -- expected to go down by next year. chinese state television says
kim jong-un has promised to update ties in beijing to a new level. it was his third visit to china in three months. pledge to keep supporting north korea. it's also a sign of chinese with the u.s.. the trump administration has withdrawn from the you in human council, the geneva-based criticismce growing of trump's policy of separating undocumented immigrant families at the mexican border. lawmakers have voiced opposition to removing children from their parents. >> what i'm asking congress to do is to give us a third option, which we have been requesting since last year, the legal authority to detain and probably remove families together as the unit. we have to be ever to do this. this is the only solution to the
border crisis. >> german chancellor angela merkel and french president emmanuel macron have agreed on a plan to strengthen the euro area and its two biggest economies agreed in principle to set up a joint retail budget and rebuffed the european system. they are seeking to portray europe against financial crises and strengthen its global influence. however, they still need to get other governments on board. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. ramy: let's take a closer look at the u.s. market close because stocks did decline across the board, but they did manage to close well off their lows of the day. the dow is in its longest losing streak since march of 2017. investors also piling into bonds. su keenan is here. : as you said at the top of
the show, you had trump what china with these tariffs and china whacked back, the back-and-forth has been worrisome. what we had was treasuries rising with dollar yields falling. the dow fell by the russell 2000 small caps hitting a fresh record. we will get more on that in a moment. let's take a look at some of the stocks that analysts and investors view as highly exposed to any retaliation from china. apple at the top of the list, china counts almost 20% of its revenue, it's looking to expand. facebook, netflix, more google also had some exposure and general motors and tesla both expanding on -- planning on extending into china, they both got it hard and closed off the lows of the day. let's look at some other movers
because there were a lot of rallying stocks. netflix heating the $400 mark as bulls push higher with these price target. wall street is getting a lot analysts saying 500 is the price target and goldman yesterday said for 90 is 490 is thetarget -- price target. and a gene there be stock out with some astonishingly positive test results on its experimental therapy, so rivals were rising with it. getting paid to stay home is the theme of a bloomberg chart. is in our library of special bloomberg charts. ,t's a measure of smaller caps mostly domestic stocks. you can see right before the election, after the election hit its peak but it has gone through gyrations and come back to records as the focus is on the
exposure of the interest of companies to perhaps some kind of retaliation, not so with the smaller caps, so they are outperforming at the moment. haidi: we clearly see these u.s.-china trade tensions playing out and taking a toll on oil prices. is the concern that that will feed into the demand or hurt demand? what's the latest ahead of that opec meeting? su: it weighs on the concern about the man at the time when the optimism about a possible compromise move is likely to be discussed friday at the opec meeting, is falling apart. opecs to be unanimous that ,nd the move to boost output they're pushing for $1.5 million a day out the gate and it has been hurting the price, as you see there. a lot of u.s. traders are saying in addition to the headline risk they been predicting, this could
be a very volatile meeting. it's a buckle your seat got kind of countdown to that meeting in the anna. vienna.e anna -- in haidi: probably a messy looking meeting as we get closer to friday and saturday. let's get to the opening shots of this potential trade war between the world's top two economies. president trump is maintaining his hard-line, signaling skepticism that talks with china would actually work. is the administration willing to take this all the way to a trade war? is it seeing this is kind of a negotiating point? >> at this point, they seem to be quite serious about doing this. treasury secretary mnuchin predicted that the trade war would be on hold. it has not been much of a factor
in talking about this are dealing with this in a public way, suggesting that his view has lost out at the trump white house. the president as you said expressed some skepticism about whether this could be resolved with negotiations with china. in fact, he is not only added tariffs on another $200 billion worth of goods from china, he said that there would be another $200 billion worth of goods that would be tapped with tariffs in the future if china continues to retaliate. china does not seem to be backing off, either. joe, what are the chances that congress could step in and try to resolve this? joe: at this point, it's fairly low. there's an effort by some business groups to lobby congress to increase their oversight on trade and tariffs, but so far, the minor efforts that have been made in congress theoll back, for instance steel tariffs on the e.u.,
canada, and mexico, have pretty much come to naught. there is a fair amount of sentiment in congress for punishing china. a lot of centers, both republican and democrat, have seen china playing unfairly in the past and are concerned they say about national security productssed by chinese zte, so the company there doesn't seem to be a whole lot of movement in congress that they are going to step in any time soon. toy: when it comes negotiations with china's role in north korea issues, what is the impact here? ostensibly, donald trump has to rely on beijing. joe: that's right, they've gotten a lot of leverage here. there also the major trading partner for north korea. third,isit to china, his shows that china is in fact putting themselves in the middle
of this and they intend to exert their influence whether or not they choose to use that as leverage in the trade talks, it will be a very delicate balance for the chinese to make, but they could easily make trouble for the president, as his goal is to make this relationship, or this new relationship with the north koreans work and get to a point where they can get rid of nuclear weapons on the peninsula. xi has quite a comfortable seat here on that. ramy: an interesting balancing act for donald trump as well. thank you very much. still ahead on "bloomberg daybreak: australia." u.s.-china into the trade spat with fred hoch work. haidi: up next, investors drop walliskiest assets as
ramy: we are counting down to the sydney open right now, you can see the morning over the city over health. positive,oking quite .6%, despite what happened in the u.s. after donald trump unveiled another $200 billion in extra tariffs on chinese goods. i'm ramy inocencio in new york. haidi: and i'm haidi lun in your. you're watching "bloomberg daybreak: australia." u.s. stocks falling, although we the session lows, if that's any consolation. we heard, is there to extraordinary complacency we are investors sitting up and paying him sort of attention, because ever since february we've been
talking about this rotation into defensive strategy and away from growth and into value. have we actually seen that? >> we haven't really seen it. when i came in this morning, there was no lack of complacency when i saw the screen. when you look at how strong the u.s. market is, i think krugman has a point, and we may indeed see the vix continue to tick up, but the u.s. and credit -- u.s. economy is incredibly strong. that factors into president trump's calculation on the trade war, if you're going to do it, at at do it with nominal gdp 5%, maybe even 6%. it's not a bad time to do it. so a little complacency, maybe, but you have an incredibly strong engine right now in the u.s. and that is what is driving a lot. haidi: is it your assumption
-- willse tariffs be they create that short-term inflationary impact, or are you more concerned about what policymakers will have to do to navigate the longer-term dragnet seems inevitable? think it's the longer-term dry. there is already inflationary pressures building up globally and were just seen that for the first time. it has been a long time in the developed world that we've seen any inflation. it's kind of conceptually a new concept for us, and by that i mean in the last 10 years. tariffsard to the specifically, we have to remember that in many cases they have to be finalized, then there are 60 days to implement. talking aboutare the midterm elections coming up in the united states, many of hair, whatever the number ins up being, they
probably would not really be felt for a while. i think it is a longer-term game and folks speculate as to who has the longer time frame, .resident trump or president xi both have the incentive to make this work, so we will see how it plays out. to your point, i think it is longer-term than maybe we saw from today's markets. by the indication of the futures, maybe the markets are already recognizing that. for our investors watching, is this a buying opportunity that the dow has just turned negative just today? but you talk about economic growth in the u.s. approaching 5% or so. john: your correspondent earlier pointed out that the russell 2000 hit an all-time high today, despite the market turmoil. i think that's less related to international sales and is related to the tax cuts and some of the strength of the u.s.
economy. cio on tv a-known few days ago saying that the rusheconomy was on a sugar like a little kid that drank eight soda and was all amped up, but they would trash shortly. i think there is really structural strength in the economy -- they would crash shortly. it's more of a long lead time. buying opportunity, it's tough on days like this. sometimes the best thing to do is sit on your hands and reassess where you have conviction. all those things that we like that are bottom up stock stories that are executing their business without any problem today, they are executing their business, i think we want to rethink where our convictions are. i think e.m.'s are cheap, they look very attractive. but we do have to assess whether in a sense the technical issues start to affect the fundamentals. forou look at flow of funds
e.m. related stocks, they are not great right now. i would probably like to see where those go a little bit before we start wading into heavily but they are attractive valuations out there. ramy: as our asia-pacific viewers start to wake appear, i want to bring in this bloomberg terminal chart. we are looking at the shanghai composite, logging it second-biggest drop of 2018 on your more than three point -- 3.8%. in your note, you said that if it holds support around 3000, it should be ok, but if it breaks below that level, it would be tough, your words. 2907.e now at your thoughts? it a couple to give more days to see if it's a short-term blip. maybe china announces some easing.
the shanghai composite has been more affected by some of the tightening the last couple of years. this would be a natural time for it to start to breakout. by the saints open, if it stays below that 3000 level, in some ways that's a market saying wait and see. there were two firms that came out today that downgraded china growth for 2018 and 2019. i think we need to give it a few days to settle in, but that is a level i would want to watch and keep an eye on as well as fund flows. haidi: is it fair to think of chinese markets in this environment as almost a bit of a haven? john: yes, i think that is true. which isa name we own down 5% last night, which is crazy because it say domestic market. shift cement. but there is something to that. are there domestic businesses
that even if china's growth slows to mid six is that are fine? i think it begets a bigger issue which is, should we even think of china as an e.m.. where are you investing, they say china. what games do you like? we like tencent. a notch or that's the same as saying we are going to go into peru or turkey or brazil. i think there is something to may in a way,a there could be some safe haven there and there are some attractive businesses. china is still a very strong economy and there are still some great bottom-up stories there. haidi: think you can order -- you can argue china is like anything else on fundamentals in the story. ,reat to have you with us, john
that's our mission is to reach global customers. we are starting with the but ourd nations ambition is to spread our services in emerging markets as as we fill our services will be more effective in these areas. i know it might take decades, but that is my eventual goal. haidi: that as we fill our servs will be more effective in these areas. long-running joke about a starbucks on every corner may be fading, at least in its home market. the coffee behemoth plans to close about 150 u.s. stores next fiscal year as it forecast comparable sales to rise just 1% globally in the current order, the worst growth in about nine years. business is booming overseas and the ceo says china remains a bright spot. group's twoies major businesses are moving further away from each other, highlighting its transformation from a trading bellwether into a dealmaking shop. fixed incomes earnings fell
sydneyit's a: 30 a.m. in . this is how futures are shaping up. u.s. markets having quite a time, particularly the dow, its longest losing streak in more than a year, but not looking white as bad as we head into the aussie open, seeing quite a nice upside of .6%. it 6:30 p.m..ork you are watching "bloomberg daybreak: australia." let's get the first word news with jessica summers. jessica: president trump has signaled skepticism that trade talks with china would work, but
insists he is not backing down. global stocks decline after gross two biggest economies by the opening shots of a potential trade war. yet asian futures are pointing higher. promising to retaliate if the president follows through on a new threat of 200 -- $200 million of terrorists. >> it is -- if psychological effects in increasing uncertainty could be very serious, and we are certainly getting later in the cycle of escalation. rejected aan has potential compromise at opec. the producers said it will not support even a small increase in oil production at friday's meeting. it's a sign the cartel scattering indiana could end in major -- the gathering in vienna
could ended major disarray. saying the u.s. call for lower crude prices are unfair. createddent trump has difficulty for the markets by twosing sanctions against important members of opec, important producers, and expect to change something for the better price in the market is not fair. jessica: indonesia's finance minister said global monetary tightening is close to the new normal -- is the new normal. central-bankberg hawkishness and trade tensions are creating uncertainty come as have developing economies failing to adjust quickly enough. >> we are very much concerned
that many countries, especially emerging and developing company -- countries, cannot adjust well enough or fast enough with this kind of environment they are facing, and that can create an environment for the global economy to have a downside risk. jessica: the u.k. says rupert murdoch's 21st entry fox has made the remaining commitments necessary to wait years to buy pay-tv operator sky. box and disney agreed to fund sky news for 15 years. comcast has made an offer for sky that is 15% high than fox's bid. sky shares have been trading above both bids. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. thanks a lot. let's get you a quick update on
the markets. we're looking at trading in new zealand in the -- in new zealand in the early part of the session , a little bit of a downside when it comes to kiwi stocks. the bloomberg dollar index rising to the highest in about 11 month. the dollar gained against every. except for the yen, which was the outperform her. sydney futures looking pretty positive despite the whiplash were getting across commodities, those declining for another action. the aussie dollar trading below $.74 for the first time in about a year on trade concerns. differential between the fed and rbs in a more germanic way. let's look a little more broadly at the yen, trading potentially, some headwinds going into the tokyo open. sterling again falling to the weakest since november, the u.k. boat as ther the
anti-brexit lawmakers push for having more of a say in the process. u.s.a reminder, we thought stocks closing lower but well off the session lows, that s&p dropping the most in three weeks, the dow the sixth session lower their in a row. adam haigh is here with us. what is the resilience we are seeing in u.s. stocks to all that is going on? remarkable in some ways. every time we see some big shock to the global thematic risk event like we had yesterday, u.s. stocks show continuing resilience to be able to go through these. futures were down 1.5% during the asia session, then they paired a little bit into the new york session and the s&p ended
up down only about .4 percent by the end of the session. it's the bulls coming back to the argument that held for many must this year but for many years of the bull market and that is that earnings are continuing to grow and will continue to grow this year at quite a clip and in 2019 and 2020. in which case more money wants to find a home that is relatively contained against these global shocks in the sense that emerging markets have been hit particularly bad and the u.s. equity market does provide a bit of a safe haven during those times. a great chart shows volatility now in u.s. equities is that a low average level it has been during the entirety of the bull market. initial shockthe we saw back at the end of january and early february is not too far in the distant past, given the geopolitical risk ramping up now, u.s. stocks are continue to be somewhat of a the tech sector
continuing to prop up that bull market like never before. australia there's rising pressure on the currency there. the defense minister lining up, forecasting further declines. what exactly is blackrock saying here? adam: key for blackrock is that you're in a phase of u.s. monetary tightening against the backdrop of australian central-bank neutralization and an unwillingness to want to raise rates down here. so is that gap continues to grow, with u.s. rates nudging higher and australia firmly uphold, there continues to be downside pressure on the aussie. before you getis into a situation where any time of care of starts to impact the
economy. as you say, blackrock is kind of growing, joining a growing number of asset managers across the board who are kind of --ting incredibly more incrementally more short on the currency and expecting further declines. , it a look at this chart shows the extent of how much pressure there has been on those speculating shorts that are now going next. ,emember, just six months ago we were struggling around why the aussie was so resilient and why people were continuing to ont those leveraging plays further gains for the aussie. how much of a change that's been the last couple of months, as you're seeing more and more people betting on the aussie going down. innocence, it's a bit of a short-term play and i think it could even potentially go lower than that next year. adam haigh looking ahead to the markets as well as on
currencies. don't forget to check our library on your bloomberg terminal. china's ambassador to australia has called for in into the cold war mentality that is straining ties between the two nations. china is australia's most .mportant export market it comes against the backdrop of a potential trade war. joining us from the harvard kennedy school in cambridge massachusetts is fred, a former chair and president of the export-import bank of the united states. fred, thanks so much for joining us. you've been on bloomberg television in the past. we are in uncharted territory, 200 $50 billion all said and done if this actually comes to pass. if you had donald trump's ear, what would your advice the? fred: -- what would your advice be? fred: his criticism of china as a trade chief is spot on.
i i had his year for minute, would say let's all do this together. i know that is slowing deliver, but we are more likely to have success if it got australia, japan, the e.u. all going in the same direction versus us going it alone. but that's not the style of our president at the present time. ramy: i want to get your thoughts on sentiment. earlier today we had larry summers on bloomberg television. let's take a listen to this. >> i don't think we are in a suicide pact on this. i suspect we are not going to cause the economy to collapse. -- i don't think that's what's going on. some people have commented this is part of a negotiating pattern. that would be my best take. for us,oyd blankfein sorry, we had so many good
people on today. so his suicide pact, what do you think? says a good friend of mine , capital is a coward. when it's not a predictable outcome, it holds back. i don't know that it is a suicide pact. of sentiment we've seen in the market selloff today . just anxiety, how do we encourage people to make investments in such a chaotic and uncertain environment, which is uncertain enough to begin with in the normal business cycle. haidi: fred, i want to throw up this chart to paint a picture of what we are looking at. billionential $250 worth of goods being targeted. china cannot match that, just because of the structural nature of where its economy is that versus the u.s.. it simply doesn't buy that much the united states. what could they potentially due to retaliate, and what is the resolution here?
if you're asking china to change structural reforms and opening up, we know the president likes shorter-term wins. exactly the problem. these have been brewing for over a decade. in terms of having a more level playing field, it's going to require more coordinated action, which may sound boring to the if we aretion, but simply looking to reduce the trade deficit, that isn't going to address the structural problems that we and the entire and theworld development we've had with china and continue to have. we make it a sugar high from reducing the trade deficit, but we cannot solve the fundamental issues with china, which will take some time and have to be a little more nuanced. about who has morgan appetite to with stand the pain coming through, how damaging is it likely to be to
the u.s. economy once you get past that sugar high of the inflation but, what are you expecting when it comes to the longer-term, potentially stagflationary impact and the detriment to donald trump song ownr base -- donald trump's voter base. be so much more effective if we had all our allies working with us in concert. the reason the u.s. has been so successful since world war ii is our soft power and legitimacy, that we did this by rule of law in a thoughtful, deliberate way. that's what separates the u.s. from china, russia, and other actors. for some reason, we are throwing all that away. i think with little prospect of getting much back in return. ramy: the aussie finance minister weight in saying the u.s. and china should go to the world trade organization.
people have not said those three letters, wto. your thoughts? fred: the wto is not as effective as it could be. it needs to move more quickly and more swiftly. it is a somewhat cumbersome process, but it's the only thing we have. there's an old expression, don't throw out the baby with the bathwater. until we get a better process, that's the process the world respects, china respects. we have been successful when we have prosecuted things against china, it's not clear why we would want to abandon that now. it does not make sense to me. fred joiningtuff, us from massachusetts. still ahead, will the philippines raise interest rates on wednesday for a second straight month? the country central bank governors speaks to bloomberg in exclusive interview, next. this is bloomberg. ♪
ramy: welcome back, i'm ramy inocencio in new york. haidi: you are watching "bloomberg daybreak: australia." when and seller will generate half of global energy needs by 2050, as the cost of lithium ion battery packs plunges. the headngs come from -- why the focus on batteries in particular in this outlook? >> thanks for having me here. batteries become the crucial source of flexibility in the global power markets between now and 2050. they help enable wind and solar to increase their combined share of electricity generation from around 7% today to nearly 50% by 2050. that is a pretty remarkable
increase and it would not happen without batteries. ramy: what is exactly driving down these that are it costs? >> the biggest single driver a better cost reduction has nothing to do with power markets. this is a transport story. we've seen a ramp up in the investment in energy storage for electric vehicles, electric buses, etc. driven down battery pack presses by 79% in 2010, and we expect that to continue to by 2030. further 67% so it's really a transport story at the moment. report also looks at the role of natural gas. how does that play into the power mix? >> globally, there are changes over this period. many natural gas operators are running their plants around the clock and we anticipate they will increasingly be a source of
flexibility alongside batteries. essentially you still have room for a lot of natural gas over a -- though it may decrease. ramy: really interesting stuff. all of this to the detriment of coal. logan: yes, indeed. natural gas has a clear role in providing flex ability, but cold is not. we see coal being the biggest loser in our outlook here. it ends up being outcompeted on and by wind and solar outcompeted in terms of the value it can provide for flexibility by gas and batteries and demand response. ramy: promising stuff there. thank you very much, logan. to central banks now in the philippines, the central bank governors seems to be making the case for yet another rate hike as consumer prices rise to a five-year high and as the peso vols ahead of the banks
wednesday policy meeting. nestor told bloomberg the bsd plans to anchor inflation back to its target next year. >> is quite encouraging. after celebrating earlier this year, we are seeing a deceleration in may. it'sthat perspective, lining up to our original anticipation that there will be of whatase in the pace we expected to go back down to target range by next year. challenges, the economy has been growing strongly, and in a situation like that, there is more possibility of passing on the cost to customers. this is the particular risk we
are looking to the so-called -- the strange -- exchange rate , we have closely monitor. in our view, from a medium-term perspective, where quite comfortable that sound fundamentals supported. next is the rate of change something that concerns you? the bspmething that monitors carefully. supply andy allow demand conditions to determine the exchange rate, but we are sensitive to the issue that you have just raised, in terms of the magnitude and the pace, for example of depreciation. it could have potentially destabilizing effects. we take a look at the situation whether in fact this could strengthen our signal that the
bsp is intent on securing the return to its inflation target and to see more orderly trading in the exchange market. david: are you raising interest rates because the fed is raising interest rates? is that the key consideration? primarily the interest rate tool is focused on securing domestic policy objectives, of keeping inflation low and stable. why we raised interest rates on may 10 is really to manage inflation expectations, to manage the second round consequences from the supply side driven first expand andt does not
lead to something that would be considered a spiral. so we are trying to manage the situation by sending a signal that we stand ready to adjust our policy focus. david: do you think you have fallen behind the curve? some of the things you are mentioning allude to the fact that you are playing a bit of catch-up when it comes to inflation. how would you address focus -- those concerns in the market? how can you say that adjustment in the philippines is behind the curve, when market rates have adjusted almost at par. by conscious design, we do not hesitate to exercise that independence. i think it serves the economy in design we ensure that
we have the ability to raise rates whenever it is necessary. haidi: that was the philippines interbank governor speaking exclusively to our david ingles. oracle shares falling in late trade after forecast also have of estimates. it's a signal the company may be struggling with the cloud. $.69ted profit will be compared with analysts productions of $.72 a share. oracle has expanded its cloud offering and his been trying to woo customers. ramy: dialog semiconductor says it's proceeding with an attempted takeover of synaptic's as it seeks to cut its heavy dependence on apple. the u.k.-based company says it is conducting due diligence, confirming his earlier report by bloomberg news. casheal is paid for in
from the company's balance sheet, synaptic shares were halted in extended shares -- extended trade on tuesday. haidi: a failed attempt to find a buyer, bloomberg sources said the government plans to focus on increasing operations in selling assets. it could include ground handling and maintenance units at -- an office building in mumbai. an election is due next year. ramy: general electric has been kicked out of the dow jones industrial average, and index it had part of for over a century. ge stock has fallen around 27% this year and is the worst performance on the dow, but distinction it also helped last year. it will be replaced and the change will take effect prior to the opening of trading next tuesday. haidi: that's it for "bloomberg daybreak: australia."
up next, daybreak asia. >> continuing this dialogue when it comes to trade, president trump d union with more tariffs and the threat of more tariffs. , viceave jake parker president their joining us from beijing in the 8:00 hour. he says while business is one solution and sanctions are not the answer, he thinks that tariffs are not going to solve the problems that the trump administration has rightly identified here. in the end, the u.s. itself could also inflict damage on to themselves. we will have his take, and what do u.s. companies operating in china do now? do they hold out until we see concrete outcomes or any kind of terrorist being implement it, or is it time to start thinking about rejigging the supply chain? ramy: and we will get the perspective from europe, we will
hear from the chamber of commerce president. we will get the latest business confidence survey of european firms operating in china. there is some pessimism there, and this is salient to what is happening between the u.s. and china right now with this trade war ramping up. a lot of these firms, a majority are finding it increasingly difficult to get access to the country. >> also looking at commodities as we head into a key week for oil, with that opec meeting. wayne gordon,d by getting his views on what kind of supply increase would look like. he's saying even a gradual increase is unlikely to fully offset any shortfall coming from iran and venezuela. lots of great conversations coming up. another strong win for the world cup host, upsetting japan in the
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yvonne: it is 7:00 a.m. in hong kong. i am yvonne man. ."lcome to "daybreak asia the top story this wednesday, u.s. stocks bounce from session lows despite the threat of a trade war, which struck a blow to chinese equities. six straight losses. treasuries rose with the dollar as traitors hedge risk. ramy: from bloomberg's global headquarters, i'm remy and inocencio -- i am ramy inocencio. also ahead, oil under pressure. potential opec output compromise ahead of fr