tv Bloomberg Daybreak Australia Bloomberg May 22, 2019 6:00pm-7:00pm EDT
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stocks leading the way south. the sterling weakens for a 13th straight day. brexiteer quits the cabinet. let's check markets. broadly in the red. s&p 500 falling. it wasn't only tech shares falling. also, the energy sector leading declines. we saw a crude fall on that unexpected filled up of u.s. stockpiles. retailers with disappointing numbers. the retailing index at the lowest level. have a lot to consider today, a full day. we have fed minutes stressing that patient approach to rate changes.
let's see how we are setting up for the asian open. sophie: we may see similar trimmers for tech and energy in asia. some losses at the start of a session, delivering another set of election results, this time from india. amid trade frictions, we will huawei band.to the marketstching bond after the forecast for australia. seen at thisield level by the end of the year. it has been on a downward trend for this year. story wee news on a are tracking. some comments from the faa chief. return to plane's flight does need to be
transparent. it intends to share boeing's safety analysis with others. it is not tied to a timeline on returning the 737 two flight. those are some comments from the faa chief speaking about boeing. let's get to first word news. testing records as per exhibit stalls in theresa may comes under pressure to resign. the pound fell for a 13th day against the euro, the lowest level in four months. the prime minister lost another senior minister who quit the cabinet and protest at theresa may's brexit plan. saysior member of the pog he is pessimistic about the economy and warns the proposed sales tax height could push the country and to recession and delay the drive towards 2%
inflation. the comments follow unexpected first-quarter growth. he says the headline figure masked weak consumption and spending. the rupee ahead of five month low after clashes in jakarta. police fired tear gas and water cannons at supporters protested the defeat in a presidential election. at least six people have been killed. joko widodo won the election with more than 55% of the vote. innting begins thursday india's election with narendra modi the clear favorite to win. the election commission will start the tally at 8:00 p.m. local time. despite 900 million registered voters, the results are expected on the same day. polls suggest there was a turnout of 67%, meaning more than 600 million people cast votes.
global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery ahn: thank you. the trump administration be ready to stoke further tension with china as a debates blacklisting more chinese firms that work on video surveillance, barring him from u.s. tech and halt the global business. theing hit out, calling tactics unfair and politically motivated. let's get the latest from our editor. it seems the rhetoric is heating up from both sides. tell us what could president trump do next here. >> the question has been bubbling about chinese firms and user use, their equipments and repression in china and possible use of espionage against the u.s. some of it has been coming along for a while. the timing is interesting.
it does come in the middle of this dispute between the u.s. and china, the breakdown of talks in trade. with the u.s. can do is put another set of companies under the same restrictions that it did with huawei, and forbid the u.s. companies from selling restricts and importation of articles to the u.s.. this will further cut into china sales and some large corporations, in terms of surveillance in the facial recognition where they have been a leader in that market. the u.s. isher sign trying to put more pressure on china to serve multiple policy goals. paul: it seems every day there is more pressure. as china responded to the latest upping of the anti-? -- ante?
>> there is some moved to ramp butnti-u.s. sentiment, chinese officials are wondering some of the same things people in washington are, whether this is a tactical or strategic move by the trump administration. the question is whether this is something that is brought to bear in negotiations and could be lifted once a deal is made, or from the chinese standpoint, whether the u.s. is fundamentally attempting to curb the rise of china as a global economic power by hitting at some key industries and areas where they have been leaders in technology. the chinese have not responded so far with any countermeasures directly, but there is time between now and the g20 summit where trump and president xi jinping may have a meeting
coming up in june. shery ahn: no action so far, but the rhetoric has been heating up. take a listen to what a listen to what the spokesman had to say. itshe u.s. keeps abusing power to smear and crackdown on other countries and their enterprises, including chinese enterprises. we have stated our opposition to that. we always ask chinese companies to operate in compliance with market principles and international rules. trumpahn: president insists that tariffs will be paid by the chinese. have we seen any concern from this administration over rising prices for consumer goods? indeed. secretary steven mnuchin has spoken with the chief financial officer of walmart, one of the biggest employers in retailers in the u.s., about rising prices. several companies have been warning they are cutting into
profits and they will begin to raise prices in the u.s. this would be of seen by consumers just as the reelection campaign for the president is getting underway, so there is a great deal of concern by the administration about the possibility for higher inflation, higher prices for consumer goods for the u.s. right now it has pretty much been hidden from consumers directly, but that will change as this continues to drag on. it raises risks for the administration. our bloomberg congress editor, thank you. still ahead, the risks and possible rewards for apple as the trade war gathers apace. shery ahn: up next, j.p. morgan weighs in on the trade gloom and how it is translating into market moods. this is bloomberg. ♪
shery ahn: we are counting down to the sydney open. futures down 0.2% after a rally of six consecutive sessions as the asx 200 has been gaining ground. we saw wall street take a hit on trade tension surrounding huawei . paul: you are watching "bloomberg daybreak: australia." shery ahn: tech sector and retailers took a hit. su keenan has been watching the market action. all to do not only with trade tensions, but the retail sector. ke lowe's.lie saying the odds are higher, goldman sachs saying we are in a
stalemate. let's go to markets. we had the fed minutes. not much of an impact. lower insaw stocks bonds not move much. the minutes reinforce that message, the wait and see approach. let's look at the s&p retail sector, down 1%. exception, real surging the most in a decade on the strong sales based in part on improving e-commerce offset those trade concerns about new tariffs on the apparel sector. let's also look at the big movers. lowe's down in a big way. nordstrom. qualcomm down, not just because
but a pushoncerns, out of its decision with the settlement with apple. stanleywn as morgan says this is a restructuring story, not a growth story. they are burning through cash and they say nobody cares about the model y. quickly let's go into the bloomberg library of charts. what goes up must come down is the title. stocks in the chip sector, which had been quite the momentum rally early in the year and late last year, it is all coming down with this huawei issue. paul: let's talk about oil. ongoing pressure, bearish supply data, futures in stocks lower. what is going on? >> energy took a hit. the five-day on oil, down 2.5%
on wti. that has a lot to do with the fact that the data, weekly supply data came in stronger than expected. big.to-date, still up one strategist said it is hard to be bullish about this latest data. year to date for oil, which was up 35%. there we go. you had oil and gasoline stockpile soil. -- swell. that is a clue for u.s. suppliers. we have a lot of drilling data showing we are continuing to produce a lot, even though the focus is on opec. , even thougha bump it is close to a two-week low due to the view that this they all meet -- this stalemate will continue in the trade war will continue. shery ahn: thank you for that snapshot of markets.
for more on trade tensions, let's bring in our first guest, hannah anderson. usually hong kong-based, she joins us in new york. great to have you in the studio. let's talk about the latest market moves. as these trade-related companies are taking a hit, this gtv chart showing the semiconductor index against the s&p 500. these stocks faring badly. the index itself has seen the worst month since the 2008 global financial crisis. does it make sense to avoid the sectors? tech, industrial, sector so sensitive to trade lines. or could this be a buying opportunity? ifit is a buying opportunity you are able to invest and take companies not exposed to the u.s. and china. you might have to wait for that
particular investment to rebound and deliver some returns. like you say, there is a broad selloff happening within tech-linked names exposed to u.s.-china tensions now. shery ahn: today, investors had a lot on their plates. we also saw the fed minutes. they signaled no cuts coming this year. pricing in cuts this year. will this be a huge disappointment for the markets? somethingxpecting from this fomc meeting? perspective,kets investors are pricing in the fed on pause within easing bias. verymeans the fed could easily shift towards and easing bias and do a cut if they perceive economic weakness. what you need for that to take place is trade tensions to feed through into the real economy,
not just profits in the equity sector. for the fed, they will wait and see for that to come through, favorite phrase, wait and see, and they will remain patient for the rest of the year as they wait for economic effects and trade tensions to show up, which we could see towards the end of the year, but more likely next year. favorite of the fed's words is transitory, which it uses to describe inflation. do you believe inflation is transitory? >> there are certain short-term dynamics that are the one offs we have seen in inflation reports, whether the pce basket or cpi basket. there are certain one offs each month that are transitory. in the long run when the dynamics persists for so long that it feeds in on a year-over-year comparison, like higher tariffs that is not transitory.
i think the fed will have the belated realization that there are inflationary effects of higher tariffs, but it will probably not show up on the broad overall basket until the end of this year. environment of uncertainty around trade and many moving parts in terms of what the fed does next, where do you go? where is a good place to put your money? theespite the u.s. being epicenter of this rise in trade tensions, the equity market is more defensive than other equity markets, at least in the way it pays out returns to shareholders. there are still opportunities within u.s. equities, but overall from a structural perspective where trade tensions have the most effect, there may be some benefit for investors willing to explore names in southeast asia that are the thatit for the re-shoring production lines out of china.
shery ahn: this chart showing you the rebound since all that turmoil at the end of last year. when we are talking about the fed being patient and having an easing bias, is it still possible if we see financial conditions rebounding? >> the fed is looking at financial conditions and watching the dollar and the role it plays in financial conditions. it is a question of what the dollar does. financial conditions could ease a little bit, and that would do the fed's for them. however, if we see investors get more worried about because of rising tensions and slowing demand in the number of other istors, a higher dollar likely the result because they will be coming back to the treasury market. for the fed, that tightens the policy of little bit for them and makes them -- shery ahn: if that happens, emerging markets could be out of the question? >> emerging markets have faced a
liquidity conditions. even in an environment with a stronger dollar and weakness in the emerging-market complex, there are opportunities beneath the surface, a company by company question instead of a country by country question. shery ahn: great to have you in the studio. you can get a roundup of the stories you need to know to get your day going in today's edition of debris. it is also available on mobile. you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪
japan, taiwan, and the u.k. have stopped taking orders for new models or shelved plans for offering huawei devices. the carriers fear the blacklisting of huawei means it won't have access to the most popular version of the android operating system. paul: the french finance minister warns renault and nissan to strengthen their ties. after meeting to japanese economy ministers in paris. should consolidate their alliance. the partnership has been rocky since the arrest of carlos ghosn. he denies all charges and pretrial hearings start thursday. shery ahn: the world's leading world exporter has begun dealing east.l in the middle saudi aramco has started operating as it moves further into its trading business.
its expansion plan would push it of globalop tier traders. it has a branch in singapore and is considering opening an office in europe. shares fell the most in two years after a u.s. judge ruled the company violated by abusing its position in the markets. it could force qualcomm to renegotiate its licenses. how big of a blow with this be and how could affect qualcomm's bottom line? some kind of sideline where they get licensing revenue here and there. this is a fundamental business for qualcomm. this is multiple billions of dollars a year in licensing income. that is high-margin income. upheld,judgment is there could be lots of byegotiations, and concerns
investors that qualcomm will be getting a lot less of this money. paul: qualcomm signaling strong they it disagrees -- strongly it disagrees and intends to appeal. how will that process work and what are the chances of getting a reversal of this decision? very strongly against this decision. what they are saying is they are asking for a stay which would limit the immediate impact, then they will go for a full and speedy reversal of this decision on appeal. who knows how it will do. we can say qualcomm has a history of having these rather dramatic and scary decisions go against it around the world. then actually winning on appeal. we are seeing things in japan, similar antitrust decisions it has managed to reverse. it has a good track record, but
we don't know how it will work out here. shery ahn: no wonder we have seen the stock being hit. down 20% for the week. we are talking about just this month a fall of that amount, and yet, morgan stanley coming out and saying this could actually be an opportunity to buy the weakness in qualcomm. what are analysts saying about this company? >> there is a whole mixture of opinions. the majority of the people are concerned about what this might mean and where this might lead. you just cited morgan stanley. actually, if you look into the details of the ruling at face value, it looks damaging for qualcomm. qualcomm has some business practices, particularly asia and china, that would allow it to circumvent the worst of this. shery ahn: thank you for joining us out of san francisco. coming up next, patience from
david: 8:30 a.m. thursday morning in sydney. the market opened 90 minutes away. futures pointing weaker right now following u.s. market lower. weeks on theive asx. i am paul allen in sydney. i am shery ahn in new york and you are watching "daybreak australia." ed: china is denouncing u.s. smear tactics as the trump administration debates whether to blacklist or companies. a potential new blacklist group.
from u.s.an others components and software and further escalate tensions between beijing and washington. >> the u.s. keeps abusing its power. we have repeatedly stated our opposition to that. we always asked chinese company to operate in other countries in compliance with market principles and international rules. a federal shutdown in washington could be back on the cards later this year. stephen mnuchin is warning the government will face defaults in what he calls late summer unless congress raises the debt ceiling again. the treasury has been able to move funds around and take extraordinary measures. signs of increased tension in elon as the supreme leader has criticized his own president and foreign minister over the 2015 nuclear deal. notayatollah says they did
follow his wishes in the negotiation and told them so at the time. the ayatollah has final say on all matters in iran. rising tensions with the u.s. the heads of the state government in queensland are calling for an indian minor to meet the regulator on thursday to work out a definitive timeline for the long-delayed project. the premier says queensland needs some certainty and an idea of where the operation is going. they say they will seek approval within the next two weeks. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ed ludlow. this is bloomberg. shery: thank you. let's turn to sophie in hong kong for what to watch in market this morning. the clients of the
answer to hundred after a six-day game and minors may move with copper under pressure, set to erase this year's games with supply risk, and traders are adding to their bearish bets, hovering near a two-week low. iron ore set to build on gains. that is what we're talking about right now. here we go with iron ore areas goldman sachs boosting its outlook for iron ore to $91 from $81. we are watching for aussie 10 year yields to open 1.61%, a record low after bond futures closed at fresh highs, tracking the overnight moves in treasuries. i want to highlight the pound on a losing streak. are bailing out, cutting their sterling positions or just being on the sidelines. 127 against the dollar and 114 against the euro.
moving below 120. says may's departure is priced in but he is not sure the market is ready for boris johnson. paul: thanks very much. it is my turn now. let's get more on what we should be watching us trade gets underway in asia with adam haigh. adam, investors showing increased signs of caution. you have been looking at our old favorite, buybacks. are they going to help this time? adam: if you look at what happened last week and remember we are only 3% or so from the record high of the s&p 500. all the turmoil in trade headlines and uncertainty we have gotten, yet thoughts are showing the willingness to get closer to that record high, and indeed, some of the analysis that bank of america shows last week's increase in corporate activity and buying back thrown
chairs was unusually high, that is one of the elements of the thesis inequities right now, which speaks to corporate companies coming back in, seeing their shares offering enough value for buybacks to push the equity market a little bit higher, so that is certainly one pillar still for that case for equities. shery: we saw bank of america cutting their forecast on treasury yields. what exactly did they say? adam: no surprises here for guessing. it is the trade war essentially. they were quite high. they had it around 3% ten-year treasury yield expectation by the end of this year and they had to bring that down to 2.6%, which is the red arrow on your chart in your gtv library, and that is still a little bit below consensus. the white my looking at 2.72% or so on the 10 year treasury. significantly higher than where we are today as the continued
expectation for a patient fed and continued turmoil in trade keeps a lid on yields and keeps pressure pushing down yields globally. shery: thank you so much for that. bloomberg' market editor. syou can find his start in the gtv library on your bloomberg. theyatest fed minutes show will be patient for some time with inflation far below target. it is a case of wait and see what happens next. kathleen hays is here with the key points from that may meeting, a meeting that took place before these tariffs escalated between china and the u.s. any surprises? kathleen: i think we really got what we expected. it is what jay powell, the fed chair, all the things he talked about after that meeting, that all important press conference. in fact, --
now, it is interesting. the new york fed president, john williams, echoed what he told me in an interview last weekend. he said there is no strong argument to move rates one way or another. again, wait and see. also very important in these minutes of course, they said that many -- obviously not a butrity, more than half -- many of the fed officials see that the easing will be transitory. he said he is awaiting confirmation of that working inflation that weak is temporary. to them to the bloomberg library. we have a chart that will show you where inflation is, and where it should be. 2%.
it has not been at or about 2%. this is the core rate coming down to 1.5%. this is the headline rate. it is back up to 1.4. at any rate, long way to go to where they should be. thisf the key takeaways -- yuan inflation is transitory. the fed is not looking to cut rates anytime soon. a lot of things could be going on. thisave got to remember took place before the big escalation. the president of the boston fed risksy one of the biggest to the economy is they could slow growth significantly. he is so optimistic that that will happen. more on the technical side. the fed was considering whether or not they should change the composition of the balance sheet towards more short-term securities. that could help steepen the yield curve a little bit.
bottom line, it is all about monetary policy and patience and it is all about fingers crossed that inflation is transitory. paul: global economics and policy editor kathleen hays, thanks for watching up -- wrapping up those fed minutes for us. joining us now is the chief economist. few keywords. patient, transitory. it seems like there's really no strong case to move in either direction. so how long do you see the fed holding this position? >> you are exactly right. reading the minutes, it does seem like there is a significant amount of uncertainty regarding the pathway for rate even in the near term, going through to the end of the year. there seems to be a fruitful conversation. an outrightd about rate cut but there was questions about sitting on the sideline. some mentioned a late increase. a lot of discussion going on. most of that is based on the fed
's ongoing optimism that the economy will remain on track, and more importantly, that inflation will reverse course to that 2% objective. i think that may be a little overly optimistic and if the fed comes to realize that inflation pressures are not as transient as they anticipate, they will be forced to cut rates sooner than later. potentially by the end of the year, if we see the data softened, we would expect that to come in the first quarter of 2020 at the latest. paul: in terms of inflation, i guess one potential spanner in ongoings could be the trade disputes. if that gets bad, that will be inflationary, but it is not helpful on the growth fund, is it? lindsey: no, it is not, but we have to be careful about where those pressures will translate into the economy. if we see the consumer is still on significantly fragile footing, if we do not see wage meaningfully,
if we do not see that sustain, if we do not see the consumer out in the marketplace robustly spending, then i do think it is going to be very difficult for producers to pass on that cost increase to consumers without the risk of losing market share. meaning we could see a pop on the producer syed in the ppi reading. it is not necessarily a given. the fed is washing the pce. as we saw last year with the tariffs implemented in late 2017 to 2018, inflation was relatively benign. we did see three-month about 2%, but since then, we have fallen back down into this very clear this inflationary trend. shery: we heard from chair powell talking about potentially using an inflation range as one option that should be reviewed. what do we think of these remarks? lindsey: i think it is giving
the fed a bit more flexibility. members haveittee been clear, is a bit more policy really has in the capability of targeting for giving themselves a broader range allows for flexibility and does not necessarily put the fed into the corner, into a box. especially if they do think that a lot of the fluctuations we have seen in prices as of late have been temporary or will prove to be transitory, so giving themselves this wider range allows for additional for stability and policy. notingthe fed officials the improvement we have seen in the stock markets recently. this gtb chart on the bloomberg showing financial conditions have in fact eased following the turmoil we saw in the last part of the year in 2018. if financial conditions continued to improve, for how long will this stay out of the debate for the fed? lindsey: it is interesting because stable financial and
global market conditions have essentially become the unofficial third mandate of the fed. statementw in the may and in the made press conference was that the fed was focused a significant amount on what was happening overseas. the chairman specifically talking about stability and financial markets, as you just mentioned, but also commenting on the brexit, trade, both profile in major key economies. it is clear that that is not only watching the domestic recovery through stable prices theemployment, but also risks of contagion in terms of what is happening abroad and what is happening in the global recovery. and as we do see some of these layers of international risk removed, that may further perpetuate the fed's willingness to remain on the sideline, remain in this patient position. paul: about this time yesterday, we had the st. louis fed head speaking to us. he felt that december tightening was a bit much.
what are your thoughts on that? lindsey: he certainly has a point. when you look at market conditions and you see the very flat and partially inverted yield curve, i think it is very clear that the market is sending the signal that the fed did tighten beyond what it would consider neutral. i think when you look at the differential in yields, especially on the short-term, you could argue that one rate cut, if not two, is needed just to right the juncker. think he has a point looking at the yield curve. the fed maybe got a little more aggressive than they needed to probably it would have been more appropriate for them to take a ,atient and earlier in 2018 maybe around the june meeting, giving the committee more time to assess the data and determine whether or not additional policy or a removal of policy
accommodation was appropriate. at this point, i certainly would agree they have moved beyond that neutral point. shery: great to have you with us. lindsey piegza, chief economist. now in sophie kamaruddin hong kong for some movement in aussie bonds. look atif you take a the two day charts, we get a closer look at the movement in the aussie 10 year yield. 1.59%.seeing it lower to that would be a record low. this is as we get more momentum around the rba potentially using in june. you can see the drop right here. a --on the back of the of from 1.9% tong 2.25%. some jitters around trade tensions. shery. shery: thank you so much for that. coming up next, the u.s. government blacklisting of huawei, prompting worries about
paul: i am paul allen in sydney. shery: i am shery ahn in new york. you are watching "daybreak asia ." the trump administration decision to reckless huawei has prompted questions on the future of five g technology. cisco systems ceo spoke to bloomberg to discuss whether the the technology. lindsey: i ask -- >> i actually do not worry about that. multiplehere are suppliers around the world who provide medical radio technology. that is what we're talking about. once you get off the macro technologyrovide the in the core networks for our
customers, so i think there are plenty of alternatives out there. i think the bigger issue when you think about 5g and the deployments are the cost of capital to build out these networks. environment.y thewhat is the reality of business model that they can build to actually get the r.o.i. on the investments they have to get there. those are the investments we need to be talking about and working on. >> there's been a lot written that because of the ban on that it presents or creates an incredible opportunity for the likes of you and others. i have seen $5 billion in terms of the global market. do you see that ban on huawei as an opportunity for cisco? lindsey: it is hard to say -- >> it is hard to say because we focus on our innovation and working with our customers. largestomers in the telcos and carriers around the world have multi vendor strategies to begin with.
it is difficult to ascertain when they increase volumes and what is the cause of that. they typically would not tell us anyway because it would not want to give us any negotiating power. shery: that was chuck robbins and jason as carol part of the bloomberg businessweek talk series and you can hear from business week's reporters and editors every saturday and sunday on bloomberg television and radio. we just heard the cisco ceo on the huawei ban. let's talk about the impact on apple. goldman says the company could lose nearly one third of its profit. mark gurman joins us now from l.a. how could apple be affected in china? mark: i am not as pessimistic about this as goldman sachs is. the numbers i have heard are anywhere between 1% and 5% in
terms of the negative overall iphone sales in china. this is stemming from the fact that the u.s. is in the process if you arehuawei, so a consumer in china looking to buy a new smart phone, would you rather buy one from a homegrown national champion mike huawei? -- like huawei? versus apple? that is where the boycott or semi-informal boycott on apple products in china would stem from. shery: what would happen if china imposes an outright ban on apple products or apple production in china? mark: i do not anticipate that being something that would under or something consideration. if it did happen, it would be a catastrophic blow to apple since all of their devices are manufactured in china and they have a large user base of people in china and a lot of sales. i do not think that is something on the table or something that would be even possible for apple
to see an outright ban from china. i do not anticipate that at all. paul: we did talk a lot about the ultimate cost of these tariffs being borne by consumers. going to mean for u.s. consumers who may be shopping for a new apple product? mark: on the u.s. side, if apple were to pass the cost of the consumers, itthe would be in the 9% to 15% price terms of the increased so perhaps about $100, $150 on the higher-end models. i anticipate apple splitting the difference. there's ways around this. they could work through it in terms of purchase plans, their marketing of prices, how they decided to institute the new storage places, if they are going to do storage increases, how much you can store on the phone, so there's ways around this besides hiking up the sales price. consumers are not aware this is a tax due to the tariff
situation. shery: beyond china and the u.s., could huawei's problems help apple? europe, itfically in presents a little bit of a gap for apple to get a little bit more or a few percentage points more of market share. if you are a consumer in europe and you are deciding which phone to buy, the fact that it is very likely that huawei phones will lose access to key components, from some filmmaking component makers like intel and qualcomm and others in the united states, especially losing access to google services and the google ecosystem, that makes it a little bit more of an interesting device to buy since it will not be losing all that functionality into software. that is where apple may see a little bit of a benefit and that is where i think the negativity, which it is a real problem in china, the positivity in europe, you can see some of those scepters evening out so in the
end, apple is neither ahead nor behind and it is pretty much at the status quo. shery: it seems pressure on wally is growing. a succulent -- huawei is growing. a south korean newspaper asked them to join an antiwar way can -- anti-huawei campaign. plenty more to come on "daybreak asia." this is bloomberg. ♪
paul: let's get a quick check of the latest business flash headlines. paul can't the most in more than two years after the u.s. judge wald the company violated antitrust law by abusing its dominant position in the chip market. the ruling says qualcomm used its power to charge excessive licensing fees from filmmakers and suppress competition. qualcomm said is strongly disagrees with the judgment and will seek an immediate appeal. shery: china's biggest airlines
-- the grounding of the 737 max jet. they have filed formal claims with the plane maker while tenet china at easts -- says it is asking for damages. the state-run carriers operate 53 of the 96 max planes lying idle in china according to local aviation data. paul: british steel has gone into liquidation, putting 5000 jobs at risk and adding to the gloom in u.k. manufacturing. as, the bailout was denied. theresa may says it is unlawful to provide a guaranteed to the company. shery: coming up, we will have more market analysis with the head of research and strategy, . ofnty more on the next hour
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paul: good morning. i am paul allen in sydney. we are one hour away from the australian market open. shery: good evening. i'm shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this thursday. fanning the flames, the u.s. debates that listing more chinese tech companies. beijing's slams what it calls an american -- american smear tactics. the s&p