tv Bloomberg Daybreak Australia Bloomberg August 12, 2018 6:00pm-7:00pm EDT
haidi: president erdogan says the u.s. is waging war on the economy and undermining the lira. ramy: the currency suffered its worst week since 2001, but now they are limiting swap transactions. haidi: criminal charges released at the inquiry to australia's finance ministry. ramy: the saudi's sovereign wealth fund may raise its investment and there is a lawsuit.
haidi: hello from sydney where it is passed and :00 a.m. -- it is passed 8:00 a.m. ramy: it is past 6:00 in new york on a sunday. i am ramy inocencio. looking at where things are heading, take your pick between the u.s. and china, u.s. and russia or u.s. and turkey. there is a lot of rushing about with sanctions and tariffs. we are seeing the knock on in the currencies. let's show you what is happening first with the dollars. you can see it's sliding. the euro is heading the other way, down a quarter of a percent , and we can see the biggest movement happening with the turkish lira, now retracing some losses, 5.6%. we had above the seven handle, 7.2. after the headlines in the past few minutes, we see it going
back below seven. 69 --he russian ruble, 67.9, that is the weakest in the past two years because of restrictions coming from the u.s. with regards to what has been happening with that u.k. double agent and the nerve agent attack we saw earlier this year. quick check of the close, markets on friday, good day. , really a0 and nasdaq broad basic line based on the geopolitical tensions and what is happening. sanctioning, and china, turkey and russia. take your pick. haidi: we are seeing this blow in safe havens. look at the price, things like gold, the yen, the buybacks of the u.s. dollar away from risk currencies. sick -- i got the set up in -- look at the set up in asia. you mentioned a tepid negative
opening expected in asia. you have a downside already in the we stocks and the kiwi below is 65.77, dropping $.67 u.s. for the first time in two years. we will have the minutes from last week of the rnc. the aussie dollar going into a bit of a tumble in the emerging market currencies. we are watching china. last night was the anniversary augustvaluation from 2015. we are watching for indications of policy. the pboc won't be easing the yuan as a weapon in the trade war or to deal with external difficulties. we are dealing with chinese equity markets as well. industrialectations, production, activity data to watch out for from china this week. let's get to first word news now. saudi arabia's sovereign
wealth fund in talks with a significant investment in tesla as a part of elon musk's plan to go private. the fund has built up its state for 5% in recent weeks and now exploring how it can be involved in privatization. talks began before the controversial going private cents.got president has taken to twitter to criticize a company he hailed as a true american icon, harley davidson. said people could boycott if it moves abroad. he said most companies are hardly competitors. bad move. they looked at overseas investigation -- bloomberg has been told petrochina could hold [indiscernible] tariffs.potential under the plan it would go to other countries or swap u.s.
assets with them. xi jinping may be willing to suffer some pain to avoid backing down on a trade dispute. third largest buyer of u.s. lng. shinzo abe plans to stand for reelection. the nikkei news said it was announced at a party meeting, and three quarters of lawmakers would back him for a third term. the former defense minister said he will challenge abe in what is seen as a longshot bid. launched a spacecraft to fly closer to the sun that any mission in history. the parker solar probe lifted off on the delta iv heavy rocket . it touched the very edge of the sun -- it will touch the sun's corona. it will make 24 close approaches over the next seven years. global news 24 hours a day, on
air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am rosalind chin. this is bloomberg. the: if you want to go on currency roller coaster, the turkish lira is the one to watch. it has stemmed declines in the past few hours after the banking regulators said the transactions with the country facing another week of financial market turmoil. the purchase -- the turkish president will threatened new alliances and new markets. joining us now is bloomberg editor ros krasny. what did we hear from president erdogan, or anything from the u.s.? exchanged,of words not so much exchanged. we heard a lot from president erdogan. andpoke three times today continued to talk and talk. tohas taken the opposite
what traders want. they want something more to calm down the tensions. the one is kind of -- president erdogan is kind of lashing out at the u.s.. we saw the iranian foreign minister getting involved, wondering why the u.s. is treating a nato ally in the same way president trump is doing. really nothing out of president erdogan to diffuse the crime out of the u.s.. he said the most recent thing we have heard from president trump kind of going about the situation in -- crowing about the situation in turkey. the turkish lira is falling against the strong u.s. dollar. it is similar to what we have seen trump do in the past couple of weeks. the chinese stock market. coming into the trading week, as you can see, plenty of volatility and concern among investors. haidi: plenty of concern, but ,hat about spillover effect
contagion? there is a difference between what the markets have said or are saying and what is coming from the trump administration. .os: that is true markets are concerned, and we did see the big jump in volatility in emerging markets, in the emerging markets currency index. piling on thely pressure given the conflict between the u.s., china and the u.s. and russia. of concerns about contagion. the market was down friday. you think president trump, even though he has been enjoying this with u.s. markets competitors are allies or friend amaze, i don't think -- frenem ies, i don't think they want the slump for the election, the
midterm elections in november. i am sure they are watching closely and theoretically could pull back from the brink. the brink is really on the horizon. haidi: yeah, if we are at an inflection point after all the buildup in pressure. thank you so much. .loomberg editor ros krasny we will continue to watch turkey throughout the week. you can follow more on our markets live blog. you can get a market run down and commentary analysis from bloomberg's expert editors. you can get what is affecting your investments right now. we will continue our discussion on turkey in a moment. we talk about how the crisis is spilling over to the eurozone and emerging markets. ramy: if you need your campaign -- crafting six, the ceo of coffee box. taking on starbucks in a booming
ramy: we are counting down to the sydney open. there is the sydney opera house you are looking at on monday morning in the asia-pacific. futures slightly higher, up .2%, but lying what we saw in the -- belying what we saw in the red. with the geopolitics moving around the world, you look at china, turkey, russia, i am ramy inocencio in new york. haidi: i'm haidi stroud-watts in sydney. we want to get back to the topic of turkey because the question is if it is in the us and credit -- if it is idiosyncratic pace, stop these,oved to stemming the bleeding for now.
tensions with the u.s. show no signs of abating. they are escalating. joining us is a managing director. happy monday. here is a chart to start our conversation. this is looking at correlation risk between the euro and the lira. as volatility rises, we have seen greater correlation between asset classes. is this something you are watching given the euro is two thirds of the dollar basket? >> it is something you see, big markets selloff. -- sell off. if you look at turkey, the economy is not that big, it is $900 billion. the european is $17 trillion. it is not huge part of the pie, so certainly you want to watch it because [indiscernible] haidi: the problem is it could get quite bad. there is no circuit breaker insights.
policymakers are not doing anything because whatever they do is likely to be more backward for u.s. sanctions. raymond: i think the problems in turkey are not just a factor of what is happening with u.s. sanctions but more internal. it is mismatched, too much foreign-currency debt, not paring back with the lira. what they will do is put economic policies in place, increase capital controls to stem the losses they are facing in the domestic economy. ramy: if we had had this conversation an hour ago we might have said this line is president erdogan would not be doing that. we saw the headlines about the limits on swaps. hop into the gtv library. i want to show you the lira depreciation. we can see it is that the seven mark. to what degree does this give you optimism there is willingness to act on behalf of the central bank?
raymond: if we saw the lira fall --er the 10%, they do have the president has been very reluctant to increase interest rates and do what is needed. what they have done is short-term growth through credit growth at the expense of long-term economic stability, so they are forced to act. the first step of mentioning regulation to the bank stock lines is one measure. i don't think it will be enough. they will have to increase interest rates. you have seen in other parts of the world where they say to stem the losses of the currency. they will have to increase substantially for them to stop the bleeding decline of the currency. ramy: let's say there was a lightning -- a lightbulb that went off.
say, we have to do something. how much will they have to raise interest rates? raymond: it will have to be massive. we saw argentina interest rates at 40% or so. i think they will have to raise at much 5% or 10%. point soon five to maybe 30%, it depends on how much the lira continues to fall. at the moment, not a good start in asian trading. marketssingled to the willing to increase rates and do what is necessary, they might get confidence back. haidi: i want to talk about emerging markets because they are desperate for turnaround with the u.s. dollar. witht to show this chart the needs and we consists. equities close to what 2018 lows were. there is a lot of debate. a trade war, are these really
difficult relationships with russia, turkey, iran conducive to a stronger dollar? raymond: it depends. with emerging markets you need a distinctive look at what is what is causing the selloff issues like in turkey, if it is domestic or not? haidi: turkey has mostly dealt with internal imbalances. the economics are not awful. raymond: yeah. if you look at the u.s. and asia compared to where they were in the financial crisis, the balance sheet is more strong. current account deficits are stronger. fundamentally they are stronger. the internal factors, the selloff of high-quality external factors, the push and pull whereas the u.s. increases interest rates, money will go out of em back to developed markets.
[indiscernible] haidi: are you optimistic or opportunistic, or do you think momentum is looking dangerous? raymond: it is hard because you could be catching a falling knife. valuations look cheaper. for anyone looking to get into emerging markets, stick to higher-quality countries are companies in the em spectrum. you don't want to go aggressively too early. just buy a little bit now, see how it goes, then add on. it is hard to get to the bottom come a particularly in a segment of the market where it has been so volatile. ramy: i want to talk about the u.n.. they said -- there might be a shift with the dollar-yuan trade. i want to look at this recap of how far the yuan has fallen for nine straight weeks in a row. it has been falling since the week of june 15 of the summer.
looking ahead, do you agree with them? they say the history is clear that protectionism has been affected -- we are not really seeing that. raymond: it has traditionally been a safe haven currency. it will do well when markets are experiencing volatility. my view is the yen is going to rally if we see these emerging markets and trade tensions play out. just the yen. the swiss franc, the u.s. dollar, u.s. bonds, they were up. think i misspoke. i said the yuan, not the yen. raymond: sorry. with the chinese yuan, we have found that closely. it is down 8% the last couple months.
i appreciate in the sense if the trade war gets more, gets more significant or substantial, that will continue to selloff. we heard the pboc is unwilling to intervene at the moment. they need to. it is weakening through forces, and it is good for that given this trade war dispute. it is good for exports. it will decline gradually. i don't think it will go over seven. ramy: we are already at the high sixes. thank you as always. raymond lee, kapstream managing director. you can get a roundup of the stories you need to know to get your day going in daybreak. you can go to dayb on your terminal. it is available on mobile in the anywhere app. you can customize settings so you only get news on industries and assets you care about.
haidi: i am haidi stroud-watts in sydney. ramy: i am ramy inocencio. you are watching daybreak australia. inla is likely to become trading headlines again. a sovereign fund from saudi arabia could be making it a leading investor and part of elon musk plan to take the company private. there is a matter of an investor lawsuit and maybe more than one. the plot thickens for tesla. su: the question we ended with last week was where is the [indiscernible] and how can we haven't heard of it? bloomberg has confirmed, speaking to people close to the sovereignudi arabia's wealth fund is in talks to see it become a significant investor in tesla as part of the ceo's
plan to take the carmaker private. we are told discussions are at a high level but no commitment are set. the public investment fund has 2 billionake worth dollars in march, under 5% of tesla. we are told by these people close to the matter that the fund is interested in exploring how it could be involved in a potential deal. they also say, and this is interesting, discussions were set to begin before the controversial tweet, which will be important legally. and they also say the sovereign wealth fund have potentially considered this as a way to hedge against crude. it is the biggest crude reducer but to hedge against crude oil. it makes sense that as prices go higher, there will be greater of electric cars. the words for people close to this matter, talks are ongoing but no commitment has taken
place. haidi: the august 7 tweet was not just provocative and controversial but also potentially triggered lawsuits. su: there are at least two filed on friday, one class action, the other a separate lawsuit. the biggest one alleges the billionaire cofounder and ceo and tesla itself manipulated shares. you can see the big swings in last week. the idea was they would push shares higher and manipulate short-sellers taking bearish bets against the company. there is the tweet. that is what it said, 50 characters, considering taking secured.vate, funding those words are likely legally at issue. we also know that another company is reviewing public statements made by tesla because of that tweet, and all of it
bringing pressure on the stock as we start the trading week. what is interesting as you know, the stoxx had shot -- the stock had shot up 11% when the tweet came out and then lost over the next two days. a lot of questions arose about where this secured funding whereas -- funding was. .here were talks with softbank the talks supposedly fizzled over issues of control. one of the complaints said the funding, the statement was secured is material and moved the market again. that confirms the issue whether or not it was secured will be a legal contention going forward. thank you so much for that. we are watching bluescope steel that has come up with its earnings indicators area of net income beach the highest analyst estimates at bloomberg, $4.157
billion. underlying profit at $826 million australian, and 800 -- final dividend declared a price share of 0.0 eight cents. 1.483 australian. this is one of the companies that seemed to have landed on the right side of the trade war given exposure to the u.s. side of the business. that share is up 17% on the year. we will speak to bluescope later on. that is after midday if you are tuning in in sydney, after 10:00 for viewers in hong kong. ramy: australia's financial sector is under scrutiny. criminal charges have been flagged as an inquiry focuses in
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: 8:30 in sydney where markets are open for the monday session in 90 minutes time. --ures with one of the where the rare bright spots, mixed .rea two point -- .2% higher briskly cold morning in sydney. i am haidi stroud-watts. ramy: i am ramy inocencio in new york. you are watching daybreak australia. let's get to first word news. ros: president erdogan -- rosalind: accusing the united states and others of waging war on his country. he told supporters no sign of downturn in trade or terrorism, no inherent economic reason for
the collapse of the lira. the currency is recovering after its worst week since 2001 on concerns about government policies and the widening spat with washington. sacrifice going to your relationship with 80 million people for a pastor with ties to terrorism, but we will do as the law dictates. you cannot make turkey bow down by ordering us around. iran will stand with its neighbor. the former minister also ruled out talks with american officials at the un's general assembly next month. washington is calling on the u.k. to support president trump's provides a sanctions, rather than stand with the e.u. backing the nuclear deal. china will take an 80% take in the phase two gas project over plans for renewed
u.s. sanctions. the china news agency said this will become the lead partner in petroect with iran's company. they say they will have to withdraw with u.s. sanctions. to paraphrase an old movie line, critics will need a bigger boat. smashing at the box office. this raked in $44 million in the u.s. and canada, beating mission impossible. clansmenan and black took 50-50. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am rosalind chin. this is bloomberg. haidi: more earnings coming through, australia's largest
rail freight operator, income $560.1 million australian. this is looking better than what we had expected, seeing $319 million -- looking at the final -- dend per share of this is a company in the middle of regulatory uncertainty trying to close a lost making business in queensland. great deal of uncertainty. the stock is down 10% or 11%. pressures on horizon. -- aurizon. reportingi-fi is earnings. it is not a beat, it is maybe -- they say they have met estimates , and in the fiscal year sale of
6.85 billion dollars australian. the same number was estimated. the fiscal that year income is million australian. looking at the share price, down nearly 6%, so we will look ahead to see how that reacts with active trading. look at theg a amazon effect as well. we talk about that whenever we talk about australian retailers. let's get more for what we should be watching other than earnings with trading underway in asia. the editor adam haigh here with us to kick off the start of this week. clearly trying to work out what is going on with turkey. will we see spillover? adam: what we are seeing in markets is we have not reached a conclusion because it is clearly effecting locally, but broader, the em space locally. the question of contagion is tricky.
it is a relatively small economy in the grand scale of things, and once moves start to be made by the authorities, you can get movement towards resolution, and it can be contained. we saw uptick in the lira just now. banking regulations. that might provide some kind of cushion, but this has to be the start of a series of moves the authorities need to do to contain this situation. what we are doing monday morning yen,eing strength in the the s&p 500 futures coming off a little bit on the broader week sentiment set up -- weak sentiment set up. we saw some moves on friday trading. at the moment it is showing it is relatively contained, but clearly, u.s. stocks towards record highs, people are looking
for reasons to sell down equity positions. there is plenty of worries and thein em, china currency there. this is another worry to add to the list. ramy: everyone has their opinion on the dollar. the world says the dollar will extend gains, but pitting them against morgan stanley, which has called the top for the greenback recently, so at least in this opinion, what will drive the dollar higher? graveshe thesis for matt escalating trade war between the u.s. and china having significant effects. firstly providing strength to the greenback but also relative weakness in the euro with the u.s. dollar. that is in part a reflection of the fact that relationship in trade between china and europe
will be diminished under the new trade regime with the months and years. a reminder here, this chart in the gtv library, speculative positioning from the hedge funds , back up again, still very long positions from hedge funds. onesis one of the long prepared to go out on a limb and expecting is listening for further dollar appreciation. plenty of people in the market have called for the greenback to start cooling-off. morgan stanley notably one of those. big debate. when you get extreme positioning like this chart, there is often a tendency to look back through history for positions to unwind quickly, with particular knows -- news flow or economic data that surprises on the upside or downside. those are the things people are looking for as they build into
longer bullish arguments for the dollar. ramy: thank you very much, adam haigh. don't forget to check out our gtv library for the charts you saw on your bloomberg terminal. staying in australia, the royal commission into the country's financial services industry is kicking off a second week of earnings or let's go to our bureau chief. the inquiry here has been looking into australia's $2.5 trillion dollar pension industry. what ended up happening? reporter: it turned up quite a lot last week. with the financial institutions involved, it was mainly national australia bank and its wealth management unit in the spotlight. chargede shown to have hundreds of thousands of customers fees for providing no service.
they also found documents to charged customers who were deceased. they had that sort of activity, which is not good for the banks. they also showed regulators to have been looking for ways to not pay back the compensation they were due for those breaches. fora good look overall national australia bank. haidi: not a great look. have the financial institutions responded, and are we expecting more? butt: it is unclear yet, certainly the commissioner in charge, the retired judge, those him to raise the prospect of criminal charges
against them and their wealth seriousich is a situation for the bank. it responded quickly. the ceo released a video on social media saying they had done the right thing by their customers and they were too slow to react, promise to do better. he did say he did not believe staff had acted criminally, but he said we will do better and we have not come up to the standard we hoped. we have seen other companies like amp highlighted in previous rounds, they have lost their ceo and chairman. things.serious this inquiry has not been great for financial institutions. you have seen some of them, the banks trying to spin off or sell their wealth units. that is part of the problems
coming out. for --s a potential ipo and commonwealth bank said it will selloff is wealth unit -- sell off its wealth unit. they are being put into different entities. right, brett foley thee with the latest on financial sector in australia with the ongoing commission. has for a full-grown that full-blown financial crisis. looking at the fallout for other emerging markets. fellowasking a senior with his take. this is bloomberg. ♪ loomberg. ♪
remains defined in the face of sanctions. in three public addresses he last out at washington, accusing the u.s. of waging war on a long time ally. our next guest says things will get worse for getting better. kierkegaard. jacob thank you for joining us. if you like a roller coaster ride for the lira, you are getting one. not just in the past week or two, but in the past few hours. the latest line was the country was going to limit swaps. what do you think this is as a lightbulb moment for turkey? jacob: i hope it is, but i will also say that judging from the comments over the weekend from president erdogan, i am not quite certain that the top leadership in enter a -- ingres --
i mean a full-blown financial crisis which as i look given where the lira is, you can impose capital control and the like, but i think all roads need to be met. that will not be pleasant. doesn't wantogan an international bailout. what can change his mind? jacob: you are going to see a cascade of domestic reforms. turkey has 180 billion or so in short-term debt, foreign debt repayment over the next 12 pay -- 12 months. most of it is corporate. , for a country its size, a low exchange reserve. rising -- ate is a
a time of rising u.s. interest rates. he is living dangerously, and ultimately i think there is going to be a big shift to the domestic economy. when that happens and credibility needs to be reinstated nationally and internationally, he could find the imf is useful. cynical, but sound it feels like policymakers and the central bank are standing by because they could raise interest rates by 1000 basis points but the u.s. could have more sanctions. the efficacy, the efficiency before they do this is limited. there is no doubt if the trump administration was intent on waging all-out economic war on turkey, they could do so. i must say on the other hand, i don't think they are. i think people are reading too much into mr. trump's tweets and
the increase in steel and aluminum tariffs. they will hurt but turkish -- they will hurt the turkish steel sector. construction will go into a tailspin, but is it all out comic war? no. it reflects the fact that mr. trump is someone who has said it doesn't rates nato highly and then as perception, turkey is somehow protected by being a member of nato is obviously not the case. but i would say that if the central bank in turkey was truly would be raising interest rates now and rapidly. haidi: it feels like this is the summer of discontent. you have u.s. relationships, diplomatic or economic with china to russia to iran, now
turkey, brexit negotiations going nowhere. does it feel like we are setting up for a ratcheting up of global risk at the moment? jacob: there is certainly that risk. there is a rather unprecedented degree of unpredictability at the core of the global financial system, whether you are talking brexit or the actions of the trump administration. at the same time, we should not get too far ahead of ourselves because we did just have a cease-fire on the trade war between the u.s. and european union. we are hearing warmers -- rumors the nafta the renegotiation at least with mexico is in the cards. i don't think we are at armageddon, but the risk is there, it is clear. ramy: president erdogan has
threatened to go and make new alliances. which countries and regions could benefit? jacob: i believe it is an empty threat frankly because it is not clear who he would go to and who would afford really helping him out. he could go to russia. there is no doubt vladimir putin would love any opportunity to split nato, but does he have the kind of tens of billions of dollars turkey really needs? i don't think so. he could not really go to the middle east because he has strongly sided with qatar in its struggle with the other gulf nations. i don't think qatar itself can bailout turkey. the u.s. is out of the question, and he has had on and off spat with most of the european leaders as well. while everyone wants immigration deals to stay in place, they
will not be sending tens of billions of euros to turkey anytime soon. so he should look for friends elsewhere, but do they have deep pockets? i don't think so. ramy: limited options and limited money. senior fellow jacob kierkegaard, thank you. you can always find in-depth analysis and the day's big newsmakers on bloomberg radio. tune into daybreak asia 6:00 a.m. hong kong, 8:00 in sydney. download the app bloomberg radio plus for access via bloombergradio.com.
we learned about their plan to take the u.s. giant in the competitive field of caffeine delivery. women started our business, it took each store about half a year to go from -- when we started our business, we went to 100 cups a day, than 300, then 400. now our best store can sell up to 1600 a day. that is better than any single starbucks store. in 2018, the average store sells 600 coffees a day. we equal and maybe have overtaken starbucks. our average running costs are ', so weof starbucks have advantages. we want to increase our number of stores across the top four first-tier cities and expand to second-tier cities. tom: what is coffee box? what makes it stand out?
starbucks always considers its best advantage to be locations. people actually spend money inside the store. so we decided not to compete on their terms but did find our own advantage, delivery service. in 2013 our first attempt was delivering starbucks coffee because back then we did not have our own brand. we wanted to see if there was a market for this. demandlowing year we saw in delivery coffee growing significantly. we saw our first round of funding in 2014, then we could launch our own brand. business has taken off since then. tom: how much of a threat is starbucks and alibaba partnership to your business model? it is good news for us.
when a giant enters the market, they make the market bigger. our slice of the pie gets bigger. i think this move by alibaba and starbucks will increase the craze for coffee delivery. starbucks entering this space will be a big challenge for us. in the eyes of chinese consumers, their brand represents a setting to drink coffee in while ours is about delivering coffee whenever. we are like pizza hut and dominoes, one you eat in, one away. we are different business models. ramy: interesting interview. that was coffee box ceo speaking to tom mackenzie. let's do a quick check of business flash headlines. indian oil posted a 50% jump in quarterly profit. that is converting crude into fuel. the net income climbed $999
million. it is benefiting from rising domestic oil consumption, which expanded for a 10th straight month in june. equal sales surged and economic activity picks up. haidi: [indiscernible] from a year earlier. deliveries rising with demand from consumers, mainly power parts. income rose to $500 million from $340 million a year ago, but it was below average estimates. coal india is benefiting from the increasing demand for electricity. ramy: china says the government is trying to ease liquidity risks in online lending platforms. the news have identified problems, and local authorities have taken measures to maintain stability. regulators will help with mergers, assets sales and will crack down on the exit of 120 p
tempe lending platforms in july. -- malicious exit of 120 p2p lending platforms in july. haidi: looking at what we are opening two, and we will look at what these numbers from turkey mean. yvonne: the economic crisis in turkey certainly deepening. we saw that move in the last hour or so, trying to limit the bleeding in the lira. we have seen some of the relief rally with regular does -- regulars imposing swap limits, but still [indiscernible] we will have a guest at 8:00 to talk about the possible spillover effects in asia. the direct impact is very limited, but when it comes to sentiment, you had all of this to trade -- you add all of this to trade concerns. ramy: we will look at what is happening with eco preview
yvonne: we are live on the asian headquarters. welcome to "daybreak: asia." defending turkey. accusing the u.s. of waging war on the economy and undermining the lira. the worstcy suffering since 2001. ramy: from bloomberg's global headquarters, it is just past 7:00 p.m.. not begain says it will used in the worsening trade war. kevlar continues to make headlines.