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tv   Bloomberg Daybreak Australia  Bloomberg  August 28, 2018 6:00pm-7:00pm EDT

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d with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. ♪ >> u.s. stocks claimed another record as investors welcomed the u.s.-mexico trade deal, the s&p 500 crossing 2900 for the first time. >> the canadian dollar jumps on optimism of an agreement for trade. ottawa says progress has been made in initial negotiations. >> social media gets a message, as president trump goes on the attack, wanting google and others to be very careful. >> and on a high, stocks linked to marijuana taking off, with
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one company said to be worth $5 billion. >> hello from sydney, i am haidi stroud-watts. this is daybreak australia, two hours away from the opening of asian major markets. ramy: i am ramy inocencio, and we will be looking at how the action on wall street will play into your asia-pacific trading day. haidi, there was some buoyancy and optimism in the markets today, in large part because of what happened between the u.s. and mexico, that breakthrough deal. with that said, the peso fell because they are lacking some clarity, and also some questions on whether it could get through congress. meantime, canada is said to be encouraged. what does that mean for china? donald trump saying it is not the right time yet to talk with beijing. a a lot of stuff going on, but at least one breakthrough. haidi: it is really interesting.
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you have to wonder what kind of a rally we could potentially see in u.s. stocks, if there was a sign of a breakthrough when it came to trade tensions with china, given the exuberant rally we saw in response to this, look s like nafta but isn't. [laughter] as we wait and see whether canada can we get back in as well. ramy: a reminder of how u.s. stocks ended, but meantime, a couple lines just crossing the terminal. the foreign minister says she's returning tomorrow to continue trade talks. just head to the trade representative's office in d.c., saying it was a constructive meeting with lighthizer. there is positivity continuing. --, the company sees medical minimal risk for an existing u.s.-china tariff. they will continue talks tomorrow. let's get to how u.s. markets closed. change,ee, 2897 and
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only a 0.03% pop, but enough to get it to a brand-new record high. not only that, the nasdaq hit one as well, 8030 and change, but 0.15%. we will take as minor gains, because they still mean records. haidi: yes. it underscores how it could go either way, showing how strong sentiment is. we have in asia, as positive trail winds coming in from the trade story. asian stocks ended up 0.5%, the highest in almost a week. we are setting up for a little bit of a mixed open. kiwi stocks looking like an upside, sydney futures a little lower. we finished the day with gains yesterday. in currencies, steady as she goes for the kiwi and the aussie dollar.
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saw gains overnight, albeit slim gains for the bloomberg dollar index. deaths: the number of in last year's puerto rican hurricane is vastly higher than thought. george washington university says at least 3000 people died, much more than the initial estimation from the island of 24. governor said that the george washington report will be the official total. president trump warned social media to "be careful" as he accused google of rigging search results to offer negative news about him. he went on to say facebook and twitter are trending untroubled territory, and said the situation will be addressed. the president commented after business said google favors
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liberal outlets. he offered no substantiation for his claims. japan is witnessing the biggest financial exodus in over three decades. overseas investors have dumped almost $35 billion of local equities this year, putting 2018 on course to be the largest yearly selloff since 1987. ofeigners are pulling out the world's second-largest stock market, buffeted by trade concerns and a tax increase next year. huawei is appealing to the ftc for help as it fights limits to u.s. markets. it says restrictions based on national security concerns harm citizens by decreasing competition. huawei and zte have come under increased scrutiny over concerns their devices could be used for spying purposes. global news 24 hours a day, on air and at tictoc on twitter, followed by more than 2700 journalists and analysts in more
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than 120 countries. i am jessica summers. this is bloomberg. ramy: thanks very much. let's take a closer look at fresh closing records on wall street. there were a lot of fluctuations along the way. we will bring in su keenan to talk. tech stocks and optimism played a role, but the markets barely eked out the record gain. a: eked is the word we used, fraction of a percentage, but it was good for the bulls. the dollar advancing. the 10 year yield, moving closer to 2.9%. 3% is the big red flag. tech put the nasdaq higher. the nasdaq 100, a heavy concentration of tech stocks, and the russell 2000, continuing to break records. the story for best buy, its forecast really disappointed wall street, for an electronics retailer. investors fled the stock.
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qualcomm, a $10 billion buyback. as they reported results, a lot of investors liked that, but some analysts warned of an earnings risk. it outshoe company, blew on earnings. who knew? people are buying shoes. up 20%. the social media stocks, with trump warning, putting out a google, reallyn spreading his message to all of social media, and a veiled threat, analysts say, that he could take action. that is of concern to investors. let's go to the bloomberg. gtv is where you can find our library of stocks. the after-hours, the real headline, a pot firm. barron's over the weekend reported how these firms have been on fire in terms of earnings growth. it looked like diageo was going
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to buy one of the canadian firms. that is off. earnings from tilray, a 95% increase in revenue. $10 million almost in revenue, and an almost $5 billion valuation, putting that stock on the spotlight. quickly to the bloomberg, gtv is where you can find these charts. thepositivity about mexico-u.s. trade deal causing a lot of money to flow into this etf. mexico back on the map. bitcoin back on the rise, oil and gold on the move, in the opposite direction, what is the story there? su: foil was lower as we went into the close, setting up for what might be a big gain in supply, plus the dollar starting to be stronger. that also impacted gold, where we see record bearish bets, money fleeeing gold etf.
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bitcoin, now about $7,000. it's the longest rally we have seen in a long time, although again analysts say pot stocks .re the new bitcoin i ramy: thank you very much for that. a look at the markets. before we continue the conversation, more lines across the bloomberg terminal. the foreign minister of canada, live pictures out of washington. let me recap these for you. she's saying mexico's concessions will be valuable to canada in their "bloomberg technology negotiations -- in and say thattions, there is an important and constructive week ahead here. she says canada is meeting with mexican officials today, and they will have more specific conversations tomorrow. all still positive here, going
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to tomorrow, which she says is an important and constructive week, for sure. haidi: all right. theng that story along, canadian dollar rose to its highest in two months on the optimism ottawa will reach a trade deal with the u.s. and mexico. commerce secretary wilbur ross spoke to bloomberg, and said the u.s. is keen to bring in its northern neighbor. >> we are asking candidate to consider joining in the agreement already reached with mexico. that's the basic ask that we have. what remains to be seen is how close the canadian attitude is toward that. haidi: let's bring in eric martin, who covers mexico and latin america for bloomberg news. lot of detail and clarity, but it seems like the story is moving very quickly? eric: absolutely. we have seen in the last 20 for hours, perceptions changing from
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a concerned that perhaps they would not be able to get a deal with mexico or with canada, to having one of those two checked off the list and a surprise to many following this process for year now, that mexico was the first partner with whom the u.s. was able to get a trade agreement. going into this process, a a lot of people thought it would be easier for the u.s. to negotiate with canada than with mexico, because of all of the rebalancing objectives on president trump's list, to try to have a lesser deficit with mexico than in the past, and this key issue of cars. we have seen a breakthrough there, a breakthrough on the issue of energy, and here we are. ramy: in terms of stumbling blocks, sorry to be the damper on this, but there are still a couple things, right? dispute resolution, a mechanism here that the u.s. trade representative wants to kill. also, the sunset clause that has
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been one of the red lines, too. eric: the sunset clause, at lease with mexico, has been resolved at this point. they are focused on a review mechanism where after six years the governments of mexico and the u.s. would sit down and look at nafta, and see what is working, what needs some kind of tweaking, and try to in the next year, if they identify problems, to update the agreement or reach a new understanding. this is something u.s. trade representative robert lighthizer told me yesterday at the white house, a group of us there. he said the sunset clause is now really focused on fixing any problems that arise with nafta, and not allowing problems to fester, which they feel has happened in the last 24 years, rather than focusing on an automatic or sudden death to a nafta agreement. haidi: there's been a great deal of caution, in not
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extrapolating this to conclude this is a complete change in the u.s. approach to global trade in general. namely what this means for negotiations, or lack of negotiations at this point, with china. eric: sure. well, this is certainly being promoted by the trump administration as a victory. a lot of people looking at this as the first of the deals president trump has been able to strike on trade. we came into this administration hearing about trump being a big deal-maker, and now it seems mexico is the first country to have a breakthrough with him on that, but challenges certainly lie ahead in terms of china, in terms of the european union. haidi: thank you so much for that. eric martin there with the latest, as the talks between the u.s. and canada now continue. still ahead, amazon things about going to the movies. we look at plans to bring hot
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new films to a wider audience. ramy: but up next, amid optimism about that trade deal, critics say the agreement between the u.s. and mexico might go nowhere. this is bloomberg. ♪
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are by far the largest single source of our trade deficit with mexico, so we think that that will help mexico get more business back from southeast asia, and we hope it will help the u.s. to do the same. >> this is a complicated agreement. there's lots of things in here that are all-new. i would think canada would be very much on board with stronger intellectual property, stronger protections, modernizing the agreement. i am hopeful the open issues with canada can be resolved
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quickly. >> congress should look at it on an economic basis. our agreement with our northern and southern neighbors, we will take a hit. 11 million jobs, some say 14 million, hinge on this agreement. >> the president thinks the united states has leverage, because he's willing to do a deal with mexico. however, at the end of the day, congress has to approve this deal, and if congress is putting down markers that canada needs to be in the deal for congress to vote yes on the deal, then perhaps canada has more leverage than maybe they think they do this morning. ramy: all right. and former trade officials on the talks between u.s., canada and mexico here on bloomberg television. let's bring in claude barfield, a former consultant to the office of the u.s. trade representative. good to have you here. so 69 days left until the
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midterms, november 6. congress is not known for swift action. can this actually be passed? claude: well, if it is passed, it will go well into 2019. i don't think this anyway, even if they were to reach agreement on friday, that you could actually, because of the legislation congress has put in place, congress has control of trade in the united states. they have a set of deadlines that would take the administration well beyond december. so i think it's going to be difficult to pass is, because then if the democrats win the house, they will come back with things they want, and then you have to possibly renegotiate. it's good to focus on what's happened in the last week, and it has been fascinating, but down the road, i think there's a lot more pages to turn.
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ramy: all right. it seems there is concern as well among investors. i raise this because i have been looking at the mexican peso. we can hop into the bloomberg terminal, in the gtv library. we saw the peso gaining, but today we saw this fall, the biggest meltdown in about three months. trying to understand what's happening here. is it a lack of clarity, or is it a lack of confidence that this will actually pass, at least before the midterms? claude: well, i don't think, i doubt investors really thought this would pass before the midterms, so i don't think that's at issue. i think it's more the lack of clarity, the fact that it very well may be that the canadians, i forget who it was in your previous segment, made the point, the canadians maybe have more leverage than we think. congress is making it clear, they do not want to just you
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with a bilateral agreement. they want a trilateral agreement, so the canadians are coming in. go ahead? haidi: no, finish your thought. claude: one of the interesting things, the way things have transpired politically. the conventional wisdom of the past year was the united states and canada would get together, and then mexico would be sort of the odd man out. it has turned completely around, and what has happened in the last month, the canadians, this is astonishing to me, the canadians have stepped away from the negotiations. they said something like, this is just the united states and mexico working things out. what the u.s. and mexico were doing were really putting together the major provisions of the agreement, in things that really, that canada cared a lot about. suddenly canada, on monday, announced the agreement and canada's coming in here late with very little time, and with
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the president threatening automobile tariffs down the road, very little time to get its own priorities in terms of agriculture, in terms of anvestor relations, special deal on anti-dumping protectionism. so it will be interesting. i am sitting here, right in the middle of things moving so fast, you don't really know how exactly is going to turn out. haidi: there has been a real temptation to take from this newfound optimism about how the trade negotiations or the lack of talks with china and the u.s. might turn out, but reading this note from ing's asia team, it is pretty scathing, saying it is safer to view this latest deal as one the u.s. has managed shape by sheer muscle, not a more conciliatory approach to global trade from the administration. claude: well, i would counter
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that in several ways. in the first place, i have been a strong critic of the trump administration trade policy. but about a month ago, they sensibly decided they couldn't go to a trade war with the entire world. they were at war with europe, japan, canada, mexico. so they have sensibly moved in the direction of getting some things off the table, and i think that's what explains, they capitulated on some of their poison pills related to nafta, and also they are moving to talk, i am skeptical, but they are talking with the europeans. they are clearing the decks to some degree for what they consider is going to be a very difficult negotiation with china, one in which i think they are going to take a hard line. haidi: is the war with china one of attrition? claude: i suppose you could call it one of attrition. i think it is, and as i say, i had been a critic of much of trump's trade policy, but i don't agree with the tactics
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he's used in terms of tariffs with china, but i do think the united states, and this ha would be true if hillary clinton were president, has the challenge of working with protection policies that are not just stopping u.s. firms and other foreign firms from competing fairly in china. eing am in favor of them to the line in terms of china, having a hard line. what worries me, with our mercurial president who can turn on a dime, he might just be b ought off by china, we will buy $75 billion of your goods, and that won't solve the problems we have with china. ramy: we have nine days until the commentary ends on the extra $200 billion in tariffs. we have to leave it there. claude barfield, american enterprise institute resident scholar, thank you as always. you can get a round up of the stories you need, in today's edition of daybreak.
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bloomberg subscribers can go to dayb go on their terminals and also available in the bloomberg app. you can also customize to get only news about the industries you care about. this is bloomberg. ♪
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ramy: welcome back. i am ramy inocencio in new york. haidi: i am haidi stroud-watts in sydney. you are watching "daybreak australia." yum china jumped the most in a month amid rumors of a buyout. we are told the proposal values the company at $46 per share, a 28% premium of monday's close. reported they rejected the offer.
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the new look seems to be working wonders, from debt fueled expansion to sustainable profitability. the developer reported eirst-half net income at a pac close to larger rival country garden. profit rose to $4.5 billion through june. last week evergrande announced a dividend worth more than $2 billion. haidi: a different story at china southern. yuang oil and a weaker dragged on earnings. net income fell 24%, to just over $300 million through june. china southern says the trade war and rising oil, as well as fluctuations in currency, would continue to affect the results. coming up, trouble for tech. president trump accusing google of rigging search results,
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warning social media to be careful as well. we will assess his claims of liberal bias next. this is bloomberg. ♪
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>> is 8:30 a.m. in sydney. futures looking flatter into the session. we had gains in yesterday's asian shares. hopes of a trade deal between mexico and possibly canada as ,ell, and the united states gives positive sentiment in the market. the carrier reporting a fourth-year loss. underlying pretax profit of $109.6 million seeing first-quarter revenue growth of 7% quarter on quarter. i am haidi stroud-watts in sydney. ramy: and i am ramy inocencio in
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new york. you are watching "daybreak australia." first word news now with jessica summers. jessica. the canadian dollar rose to its strongest level in more than two months on optimism that ottawa will reach a trade deal with the u.s. and mexico. says canada is encouraged by the progress made so far. the u.s. mexico agreement hinged to a great extent on auto production, but critics say very few models will actually be covered. republican party are more apparent with mitch mcconnell offering jeff sessions his full backing. he says he has confidence in sessions. the comments confirm a split with some republicans. president trump has increasingly attacked his attorney general over the mueller inquiry. a little-known swiss bank has
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reached a deal with u.s. regulators to pay a fine and provide information about hidden accounts used to dodge taxes. they will pay $60 million and forfeit fees from the undeclared account to 2012. at its peak, the bank had more than 1100 accounts from your clients worth a total of $813 million. amazon is said to be talking to aboutst two major studios cofinancing movies to boost its streaming service. discussions involved sony and paramount and options may include development funds and backing for the production. it would help amazon chime new viewers and take the battle to netflix, which has currently trailed. global news, 24 hours a day, on air and act tictoc on twitter -- on twitter in more than 100 20 countries. i am jessica summers.
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this is bloomberg. haidi: let's get you a quick update on your markets. in new zealand is getting underway. we have a little bit of upside in the early part of the session. the kiwi dollar and the aussie holding steady against the dollar strength story overnight. the u.s. dollar getting for the first time in three sessions on these optimistic headlines surrounding trade. we are looking at sydney futures looking flat into the open and potentially building on yesterday's gains, so let's get more on what we should be watching. with us.h here we are seeing gains across the region. how much of this is kind of managing expectations of where we are with the trade war? components only one of what is the underlying support for equities and sentiment at the moment. the other is the change in pboc policy settings and tweaks we
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have had in recent days that have given a little bit of a floor to some of the bearish sentiment have seen. we have seen in hong kong especially this chart shows it pretty well, your gtv library, the shorter-term technical indicators closing above the moving average yesterday on the hang seng index and it shows you that little bit of short-term support. this is some of the more technical side of trading aspects that might give us a little bit of a room to move higher. that is premised on your original point about the trade tensions and the easing of some of the content we had over the last 24 to 48 hours. andhat gets one out further on the sideto err of optimism, risk assets can do pretty well. the point is we are at record highs in the u.s.. we have come off those lows of the china bear market which is
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going to take a little something else probably to push us up from here. plenty of earnings coming out might be the key. ramy: in the u.s., plenty of people missed out on the stock rally, hitting the new record today. you have been looking at the options market. basically with one actual marker here showing how people are insuring against more gains. could this be a good idea? strategists are raising their forecast to 3000 by the end of this year. you can think, especially if you missed out on a lot of this bull run, you do not want to miss out on the next leg higher. this is a way to hedge upside risk if you want to call it back, but the risk that equities do push higher in the u.s., it's rare we see this set up in the options market. what this chart is showing you is for the first time since
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september 2016, you have option volume jumping to a five-month high. also, the number of calls is outnumbering the number of ports that are exchanging hands in the options market, so clearly, people are wanting to use those options as a way to hedge that potential further upside. it's a cheaper way than an outright call on being long equities at this point. we have obviously been on a stellar run. for taking quite a lot investors to keep climbing that worried. there are still a lot of concerns. the options market here, just one way investors may be just use those hedges to protect against further upside. ramy: interesting. adam haigh, thank you. to of course, do not forget check out our gtv library for some of the charts adam just showed you on gtv on your own bloomberg terminal. flattening yield curve has gone viral in internet searches
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as it hits its narrowest ever since 20 o'sullivan -- 2007. it intensifies concerns it could be signaling recession. why isn't the u.s. treasury secretary actually ringing his hand? kathleen hays is here with more. what did mr. mnuchin said? in an interview with cnbc today, he said he's basically fine with the flat yield curve. in fact, the words he used were not at all concerned over the flattening yield curve. remember, this happens since the yield curve hit its narrowest in 2007. yes, as fried as going viral, peakedtly the searches on wall street. it is gathering a lot of what's going on here, right? probably in large part because
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every recession in the past 60 years was preceded by recession. let's take a look at a chart from our bloomberg library. spreads from to your notes to 10-year note. once you invert, that is a powerful signal. an inverted curve. you can see inverted curve recession, inverted curve recession. it got very flat. it's interesting in the midst of all this that the federal reserve, many officials are giving us all kinds of reasons why they really do not have to worry about it. they are not ignoring it. let's go back to the bloomberg library now. i want to show you another chart . here is the yield curve. around 21 basis point, but that is not very many. not too far from inversion. the white line shows you amount of treasuries being held by the major foreign u.s. treasury holders, like china. an uptrend.
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people are running to safety. if people are buying because of safety, it's a signal, right? just the extra amount of money you want to get on bonds if they are longer-term, that has fallen, too. that is why so many fed officials are dismissing this. in fact, steve mnuchin said he's content with the flat yield curve because the treasury is selling a lot of bonds. lower yield, higher price. in addition, he praised jay powell, the fed chair, in contrast to donald trump. they meet every week for lunch. stronger u.s. economic data as part of this picture, because it pushes up short-term rates. is the data showing a one-way streak when it comes to the broader economy? kathleen: consumer confidence and consumer sentiment.
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they started to diverge. much take a look at another chart. , excuseook at the blue me, the yellow line, the consumer confidence hit a seven-year high. what's happening right now to sinceers, the highest 2000. the blue line is the university of michigan's number and it has backed down to its lowest since december of last year. some people are wondering what this actually means. economics things that when you put it all together and you look at jay powell's speech, they are more dovish. they still do not look for a rate hike in december. the powellhs said speech put emphasis on low unemployment. that does not make a dovish. they are headed on the path we thought they were. if we see an inverted curve and numbers like this like i just showed you on consumer confidence and more important ones like inflation adding or
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clearlowing, it's pretty that it's a pretty strong signal. haidi: thank you so much for that, kathleen hays. has a starkump message for google and other social media companies. he is accusing them of liberal bias and is warning them to be very careful. >> google and twitter and facebook, they are really treading on troubled territory and they have to be careful. it is not fair to large portions of the population. haidi: let's bring in than brodie. presidentsator in -- criticism fair? >> it does not really seen that there is a lot of merit. google news has sort of double on established mainstream publications on the left and right and has gotten rid of some of those new media sites that you might have seen in its
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efforts to get rid of disinformation and conspiracy theories. you can find fox news easily in those areas. we do not moderate content based on political affiliation, and we .o not do it there is not a lot of evidence for it although there have been a lot of claims, usually from the conservative side, but sometimes from the liberal side as well. ramy: is this an isolated issue? ben: no. you have seen a lot of the u.s. population increasingly starts to distrust tech. they often say concern about political leanings is one of the reasons they do not trust it. you see that happening in congress as well.
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kevin mccarthy played a major twittermaking sure the ceo, jack dorsey, would be testifying before congress next week on wednesday, and he basically said he wants these online platforms to be more open. the call for regulation. that was in some ways the suggestion, so we are going to be seeing those hearings, testimony from sheryl sandberg, jack dorsey, and someone from google in the senate that same day as well. ways, there is a lot of scrutiny happening just this week. ramy: this morning in the u.s., larry kudlow did say they are looking into this. really, can the government do anything about this? ben: sure. i talked to one expert who said if the government is going to do goingng here, there are to be gigantic concerns with the first amendment. it's hard to tell a business what they can and cannot promote view wise. there are things the government could do that would regulate the
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tech companies and it would not necessarily get at any allocations of political bias. the federal trade commission is looking at competition in technology markets in the fall. calls toe been limited .urtail liability protections it's not clear that trump himself could push it through. they are coming up with privacy proposals. when that passes is anybody's guess. , our guestk you covering the latest on what could be viewed as the president , onst attack on big tech google in particular. markets tearing the trade deal between the u.s. and mexico. we're asking how long this rally can mess. this is bloomberg. ♪ bloomberg. ♪
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haidi: the u.s.-mexico trade agreement pushed the s&p 500 and the nasdaq to new highs on monday. we are joined now by the head of global equity who joins us from melbourne. this exuberance we see, the s&p for fresh record highs. just the latest milestone. the nasdaq also at record highs. is this a market that is getting a little bit too excited about a countryal with just one and that we don't have a great deal of detail over? to comment exactly on it, but i would suggest that the markets are reflecting the
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conducive backdrop we have had is very lowe, which interest rates, supporting asset prices, and undoubtedly very good profits. and the big question going forward is where the growth is going to be and to what degree is being sustained. where we go from here is open to debate. haidi: for profits, are we at peak when it comes to that as well? we have to wonder when the tax stimulus in starts fading into the next season. >> that's a good question. i think that brings you to a broader question. world whereg in a money is tightening. rising rates. of dollarailability financing cross borders.
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momentumly a loss of in major developed economies. growth is reasonably healthy. from a global perspective, there is a loss. beginning to question where the sustainable growth will come in from rather than having excessive expectations on cyclical growth. ramy: diving into technology because that has been one of the themes for today. has the momentum also come out of that? i want to show our viewers one of the charts in our gtv terminal library. the white line is the nasdaq its 200 daye 200 -- moving average. it's being outpaced by the s&p 500 itself. it's been doing this ever since the middle of june or so. with what is happening in technology right now, what is your take? >> we do not tend to focus on the sectors per se. companies.individual they will attain and sustain
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higher returns on capital. that's exactly what we look for. of the largeome tax, there is questions being asked about whether they will sustain the supreme returns on capital. some of the fang stocks are being question on that very factor in particular. is not so much a question of tech versus the rest of the market. if the individual businesses you are invested in as you sit here today. can they continue to grow, can they sustain higher returns on growth, politics, or other factors? ramy: moving back out to a macro perspective, at what the fed has planned for us in terms of september, december, and forward into 2019, to what degree of volatility are you expecting? willdo not pretend i protect volatility. that is one of the hardest things to do. of service the
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fed is tightening. that is the change taking place. it is under praised by investors. cheap and easy money from balance sheets. that changed. as mr. buffett said, you find out who has been swimming naked, and i think we are finding have very much been swimming in the shallows. you go forward, you will find individual companies are indeed countries that availed .hemselves of the cheap money the environment is beginning to change. one of your investing themes is millennial consumption. the demographics of emerging markets in asia would be pretty compelling at the moment. is this a market that you would selectively be opportunistic about?
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wars,going to be trade the dollar liquidity, and that emergence in rates that will continue driving the bearishness on e.m.'s? i think our focus is trying to work out the structural drivers within markets to find the winners and losers from a stock picking perspective so we are focused on millennial consumption. can be in the developed markets to define the market share gainers versus the losers. in the developing world, it is following the same pattern as the baby boomers. it is the same businesses that play into rising consumption, greater wealth, and the ability to tap into credit. millennial's and what they do varies across different parts of the world and trying to find which companies are dialed into that is very important.
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haidi: perhaps her most contrarian call? we do not really focus on contrarian. every stock we take we think is contrarian in that the rest of the market does not get the future growth and returns, so we could have that. we have a lot of businesses that are already high return businesses but we expect to be quality. the other names are the largest positions. these are different names, widely recognized by the marketplace, but we think these are great long-term investments. haidi: thank you so much for us, coming to us from melbourne. you can interact with the chart using gtv on bloomberg tv and catch up on key analysis to
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save the charts for your future reference as well. this is bloomberg. ♪ is is bloomberg. ♪
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haidi: that is just about it for "daybreak australia" this morning. yvonne and ramy are up next. yvonne taking a look at what is coming up. yvonne: you have been focusing on the auto sector, but what does this mean for the chinese automakers as well? plenty of short interest in these stocks recently given a lot of concerns over a slowing economy, slowing auto sales, and china opening up the auto market. the short-sellers have been burned pretty badly. he is the senior equity analyst that focuses on the chinese there iss and he says some misconception about the sustainability is of these partnerships. perhaps they might be extending
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longer than expected. the automakers are looking pretty good so far. ramy: and before that, we are going to get a read from the former u.s. ambassador to china. he will be on in 45 minutes time. he is saying with regards to what's happening with nafta that a mexico deal is still a long way from passing. we did see the mexican peso fall, indicating there is some concern that this might actually go through. he was saying that possibly we might have to wait at least until after the midterms and possibly later to see any kind of break. more on that in 30 minutes time. haidi: we are going to see another breakthrough for the markets as we keep extending into the is record highs. we are seeing quite a bit of positivity in asia as well on the back of this good news straight story between mexico, the u.s., and potentially canada. ater,l be joined by david
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talking about the impact of these trade tensions and taking a look at the yield curve implications for growth as well. lots more to come. that is it for "daybreak australia." "daybreakasia -- asia" with yvonne and rainy, next. ♪
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yvonne: 7:00 a.m. in hong kong. i am yvonne man. welcome to "daybreak asia." the top stories this wednesday, asia faces a muted start. 2900 for therossed first time. the canadian dollar jumped on optimism of the trade deal. auto assess progress has been made in initial negotiations. ramy: i am ramy inocencio in new york, where it is past 7:00 p.m. on tuesday. social media gets the message as president trump goes on the attack. he warns google and others to be "very careful."


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