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tv   Bloomberg Daybreak Australia  Bloomberg  August 26, 2019 6:00pm-7:01pm EDT

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paul: welcome to daybreak australia. i'm paul allen. shery: i'm shery ahn in new york. selina: i'm selina wang in beijing. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering in the next hour. the g7 wraps with no traditional communique. just a declaration that calls for fair and open fair global trade. the $44 billion hit. apple's long reliance on china
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is looking like it's biggest handicap. going global. worldwideplans a expansion. shery: let's get a quick check of how the markets closed in the u.s. we saw a stock rally with the dow gaining 270 points, while the s&p 500 was higher by 1.1%. we had already seen stocks higher since the morning session after president trump said the prophets for a deal were better chinaw anytime talks with began last year. the positive sentiment on trade was spurred higher with the presser from presidents macron and trump in the afternoon where we heard them both be positive on trade but also potentially no auto tariffs on japan. not to mention a sit down with iran. we saw the stocks on the s&p 500 and the green.
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let's be mindful that volume was pretty thin. about 20% below the average at this point. u.s. futures at the moment unchanged, but this as concerns are still out there on perhaps a recession hitting the u.s. we continue to see the yield curve inversion deeper into negative territory. paul? paul: thanks. just want to get to across some breaking news. some full-year results from wesfarmers, the australian conglomerate involved from everything in mining. 5.51 billion dollars, a huge improvement over the previous year. $.78ends from wesfarmers, per share. declined to name the buyer.
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the men who drove wouk's wagon to be one of the top carmakers. the grandson of another auto pioneer and become vw ceo in 1993 when the company was deep in losses. after his watch, vw raised quality and eventually bought it into the wide-ranging stable of auto brands. the reserve bank of india proved a record pay out the federal government, loosening the coffers as the economy slows. the green light to the transfer of more than $24 billion. newpayout comes on top of measures from the finance ministry. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts. this is bloomberg. shery: let's get more on the
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latest from the g7. here's what president trump had to say about the trade war. president trump: when you say maybe they want to, maybe they want to or maybe they don't. i think they want to make a deal. i don't and they have a choice. i don't say that as a threat. the united states which edit have never collected $.10 from china will be over $100 billion in tariffs. so, i think they want to make a deal. shery: joining us now is our china correspondent tom mackenzie an hour reporter maria on the phone. we will start with maria. there are a few surprises coming out of the g7, whether it is china or iran. they see mostly positive. maria. differenceade a huge from the tone of the president on friday when he said i am going to increase tariffs on china and xi is almost an enemy
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to the u.s. today, a completely different president. he said he was ready to go back to the negotiating table. he said he had a call with the chinese and now ready to engage. he said he has great respect for chairman xi and china as a country. of the trade war and the tone of the administration changing. trump went from i want to escalate the trade war because we have no other choice to let's take a step back and try to reengage. the chinese badly need a deal and they will come back to the negotiating table. i'm not optimistic we can cut this deal. paul: tom, i want to get over to you now. trump there saying china wants a deal. there is a phone call. there was going to be some calm talks. what has china's response been? tom: it's interesting. maria was comparing the change
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of tone from the u.s. president from friday to the end of this meeting the g7. she is right to point that out. we heard from the chief negotiator on the chinese side and he made a statement yesterday in beijing saying that he wants to see calm cooperation, consultation between the two sides. they still did want to continue the negotiations. seemedrd calm that trump to ripple at the g7. there has been some pushback on that statement from trump that the chinese reached up iphone. we had a state editor from an influential newspaper saying top negotiators have not spoken for a couple of days and said trump was exaggerating the level of contact. we should point out there was deep skepticism in china about the change in tone from the u.s. president. they see it as an attempt to gin out the markets. there is still a focus on
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planning for a long trade war. the good note is china does come back to the table normally even if tariffs are imposed. we have seen this and is more than year-long trade tiff. they are still prepared to talk. the point from the chinese side is they want to see the tariffs removed. shery: we continue to see the chinese economy under pressure. we have already seen the manufacturing sector in deflation. industrial profits today. tom, what are we expecting? tom: we are expecting to see another contraction in industrial profits, out around 9:30 a.m. beijing time. the prices have moved into contraction so that pressures the prices. we are likely to see a slowdown in terms of capex as well by the private sector. that will weigh on growth. the focus will shift to the stimulus response from the central government. we are very much focused. we are expecting another drop in
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china. paul: maria, let's switch to a different trade front. president making reasonably about peacenoises with japan in terms of trade. maria: exactly. another trade deal that was announced. a trade deal in principle, details still need to be finalized. it shows that change in tone from the president who says at this point, i don't have any incentive to impose tariffs on japanese cars because we have this new deal that will see the japanese lift tariffs on imports that come into the u.s. when you talk to the officials, they will tell you the reality was the japanese did not have another option. they currently do not want to risk an escalation. trump is very happy because he is hoping if anything, the japanese will fill the void that the chinese could leave empty if
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we see this escalation continue. paul: china correspondent tom mackenzie in beijing and maria tadeo on the phone. thank you for joining us. still to come, $44 billion hit. apple being buffeted by trade war. trade,next, the views on markets and fed policy. this is bloomberg. ♪
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paul: i am paul allen in sydney. shery: i am shery ahn in new york. u.s. markets, optimism over trade war progress gave stocks a boost but commodities under pressure. su keenan has more. let's get started with the stock market because we saw them higher. the volume was still low. su: many say it is the end of the summer time where typically you see a lot of wall street veterans take off. there is the hidden volatility. even though the vix has declined, volatility remains and you've got very fragile investor sentiment. investors watching the headlines read especially when you have trade headlines, it adds the volatility. the stocks index was actually strong after a big selloff friday. take a look at some of the big movers. they have a lot to do with the drugmaker sector. amgen, allrs squibb,
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of them related. amgen to pay $13.4 billion for a blockbuster psoriasis drug. shedding the asset in order to win antitrust regulatory approval for its merger with bristol-myers squibb. all three are winners. dropping as much as almost 6% monday. the biggest drop since december. there are some analysts that believe there is possibly renewed speculation about a philip morris combination, according to an analyst. let's look after hours because sticking with the drug sector, you have johnson and johnson actually moving higher despite losing a lawsuit, finding liability for part of the opioid crisis in the u.s. much less than expected. the judge ordered half a billion dollar fine. $17.5 billionht
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in reimbursement for opioid costs. a sigh of relief or johnson & johnson. quickly in the bloomberg, because we talked about the chip stocks which have been on fire as of late, selling off big on friday. investors bought heavily into the etf despite friday's loss. shery: very interesting move. thank you for the latest on the markets. calls for calm in trade talks eased some tension in the markets, but with the yield curve sinking deeper into the inversion, increasing appeals for the fed to give the market what they want. a bigger rate cut. jim young, founder and president, joins us from chicago. always great having you with us. the key question is will the fed listen? what was your key tecake away? jim: the fed is in a box. plan a, they seem to talk about the limits of monetary policy
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which i thought was directed at donald trump and telling him we cannot cut 100 basis points to fix her trade problem. plan b, they would like to see more fiscal stimulus but the fact is they are really not going to get it. i don't know what the point of jackson hole was. they should have talked about plan c, what are you going to do? if monetary policy is an effective and you were not going to get stimulus, what is the plan here instead of crouching in the corner saying i cannot do anything? i think the margin is telling them what they want and that is the yield curve inversion has a simple meeting. with long rates slower than short rates, it is a markets ago you need to cut rates. with a three-month 10 year curve approaching -50 basis points, you need to cut by 50 basis points. but the fed is not ready to go there. i'm afraid what we are going to see is more inversion, lower yields, more volatility in the market until they are ready to
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go. shery: there has been various interpretations should the yield curve inversion into this meltdown into reverie -- in treasury yields. not just because of a potential domestic recession, but we are seeing negative yields around the world. how did you interpret the yield curve inversion and the dynamic against recession? paul: i think that is right. what everybody messed up this time is what is causing the inversion and the falling yield is the global situation is not good. europe is in a recession. germany has had three of the last four quarters being in the zero negative gdp. italy has negative gdp. japan is being forecasted to have negative gdp in the fourth quarter too. we look at all of that -- let's not forget that china's gdp is at a 28 year low. we have seen the world economy is slowing dramatically. comef s&p 500 revenues from overseas. that's what's bothering the
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market right now. if you look at the u.s. data, you are saying, ok, the u.s. data looks ok, but it is not just the best house in the bad block. it is the only house not on fire in a bad block right now. that is what's got the market very word. it will come to the u.s. if the global situation does destabilize. paul: jim, i want to return to you and your earlier point about what the fed can do. it can't fix this problem by continuing. it's low on ammo, doing qe to solve what is a political problem may not be appealing to the fed, but maybe crouching in the corner and doing nothing is planned c. it would force a political solution by the president who is so obsessed by performance of the equity market. jim: you are right, there is a great possibility the fed cannot fix this. but, if they cut rates now and they cut rates aggressively and it does not work, it was not
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going to work anyway. i have heard people say they will run out of bullets. if they don't work now, they will not work if things worsen in six months or a year. might as well give it a try now. if the fed wants to crouch in a corner and say we cannot help, that would be unprecedented for the fed. look at the ecb. they have gone negative. they have gone too far by going to negative and threatening the health of the financial system in an effort to help. the fed has been viewed as a doctor. it never gives up on the patient. it keeps trying and trying. now they seem for political reasons to say, no, we have had a limit. i think to put up reasons are they don't like donald trump and they don't like his criticism of them. i think that could be a very dangerous ground if i am right on that interpretation. paul: all right, we have covered a lot of risks in the macroenvironment. the key question is where did you park your money right now? do you get defensive, if so,
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where? jim: the thing that is returning investors great numbers are long-duration, lung security of sovereign bonds, especially in europe. your rates are falling negative but look at the eye-popping returns. 30%, 40% returns. if the economy continues to slope, the fed continues to be slow -- keep talking about they are out of bullets, long-term bonds will continue to fall. they are already up 22% this year in the u.s. versus 15% for the s&p. i think the gains will continue to be adding on to it. i like long-term bonds. shery: jim bianco, thank you for your insights. plenty more to come on daybreak australia. this is bloomberg. ♪
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paul: reliance on china is looking like the biggest
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handicap. apple has shed tens of billions of market value since president from escalated tariffs, "ordered u.s. companies to move out of china." mark gurman covers apple and joins us now. that kind of order from the u.s. president for a company like apple is daunting to the point of being not even possible, isn't it? mark: i agree with you on this one. i don't think it is plausible. i don't think it is something that is going to happen. i foresee apple being in china for many years to come. shery: let's just think about the possibility of relocating some of that production out of china. what would be the biggest difficulty in doing this? mark: the biggest difficulty would actually be finding the manufacturing facilities to actually do this. the reason foxconn is so impressive and one of the reasons apple uses them, if you have ever been there, it is basically like a city. it is like a gigantic college
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campus/city that you would see here in the u.s. or elsewhere that is pretty much just dedicated to building these devices. there is really nowhere else in the world that can replicate that sort of manufacturing prowess. apple more than anyone needs that given they are making hundreds of millions of devices per year,, coming out with new ones each year. there is also the ecosystem, the larger supply chain of different components that are sent to foxconn back and forth, importing and exporting between different provinces in china and different countries. that is tied together for companies many years in advance. shifting that is really going to be impossible in the near-term. ceo: mark, what can apple tim cook do in terms of speaking to president trump? maybe lobbying for some sort of easing of these restrictions. mark: i think what he has been doing so far is basically the
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plan he is going to continue doing. the point about comparing themselves to samsung, basically saying samsung is a south korean company, then make the majority of their devices in vietnam. they will not be impacted, why should apple be impacted? not sure what that argument tim could could make. i don't know if i agree. i think they could eat the cost of tariffs. if any company can deal with this, apple with how skyhigh their prices are already on these devices for many people. at the same time, i don't think there is much more cook could do. he has been trying to do more than anyone else, but they have more at stake than any other company as well. shery: mark gurman, thank you for that with the latest on apple. we will be speaking to apple's cofounder steve most meac tomorrow. do not miss that exclusive interview on bloomberg tv. coming up, we look at how the latest rate of elements are
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affecting commodities such as oil and gold. this is bloomberg. ♪
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paul: 8:30 a.m. tuesday morning in sydney. the market open 90 minutes away. 1% onten more than monday but futures indicating a modest rebound today. i'm paul allen. shery: i'm shery ahn new new york where it is 6:30 p.m. let's get the first word news. exportshong kong's contracted for a non-straight month in july. the losses were not as bad as excited and shows the economy suffering under the trade war and the continuing antigovernment protests. billion, 7% from a year
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earlier. u.k. prime minister boris johnson says he is largely more optimistic about the new brexit deal but it depends on the european union. he admitted there is wide disagreement about demand. claims that eu leaders want a split to happen. french president macron says he does not want to see a no deal brexit and it is not too late for the u.k. to withdraw. >> i'm marginally more optimistic but also to sticl stc estimates i give all depend on the willingness of our friends and partners to compromise on that crucial point. backstopt rid of the and the current withdrawal agreement. ritika: south korean consumers at their most pessimistic and more than two years as the trade war and slump in exports cast dark clouds over the economy.
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the sentiment index fell to 92.5 this month from 95.9 in july, the lowest level since january 2017. thegovernor said last week 2.2% growth forecast would not be achievable if that situation persists. president trump's backing away from his offer to mediate between india and pakistan over the disputed region of kashmir. he says he has good relations with both nations but they can resolve the situation themselves. india rebuffed the president's offer last month. day onnews 24 hours a air and on tictoc on twitter,, by more than 2700 journalists in more than 120 countries. this is bloomberg. shery: thank you. let's throw it back to selina for what to watch in the markets this morning. selina: for a few stocks i am watching in japan ahead of the
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open, we will be watching for softbank as well as subaru which last close down almost .8% for softbank and 2% for subaru. new stock ratings on those. softbank was rated a new hold at jefferies on the backs of recently some mixed earnings. we saw the vision fund better than expected, but a lot of lingering questions about the massive bet softbank is making on another $100 million on tech investment. there is a question of why there is not a big anchor investor. subura outperforming from at creditha suisse. we will be digging into them later this hour when it comes to the china bank earnings. there have been recent measures of china bank earnings on the downtrend. pressure on margins. we will also watch for bank of
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communications as well as fulsome international. a lot to watch out for later this hour. paul: thanks. areres show markets in asia going to open higher but the erratic trade narrative has investors on edge across. andreea papuc is here. how are investors never getting these often shifting waters? andreea: shifting waters indeed. one thing we can be certain about is we cannot be certain of anything. i think what has been enforced since friday, it can change very rapidly. it has left investors scratching their heads. markets are being so whip last. we have a chart that shows that once the fed swings on the s&p 500 on a daily basis have been really common this month as the trade war has twisted and turned. one of my favorite things is an investor telling us it is a drunken more.
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there is no right or reason to how the markets are trading. we do have those more conciliatory comments from trump last night. there is an indication china is playing that down. bond yields are still stuck at those lows despite the rally inequities last night. bond yields are still lagging. attentively there is a recession on the horizon. we have the markets fully pricing in a fed rate cut next month. central banks saying there is not much they can do. it has left investors second-guessing, that is the best we can say on a day-to-day basis. shery: meantime, some strategists are saying japanese stocks have become oversold. what are they looking at? andreea: hi. that is right. the japanese equities have been amongst the worst-performing in the developed markets for quite some time now. we have the nikkei down more than 2% yesterday.
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the topix index is not been negative territory for the year amid the trade war which has sent the yen higher, as a safe haven asset. by one measure, strategists are saying it could be oversold and that is the price-to-book on the nikkei. it is about to dip below one which suggests stocks are becoming cheaper. one strategist at took your research points out the nikkei's price-to-book book below one was common during the lehman prices and the yen strength and across the dollar in 2012. we are in very unusual times, but not as severe as then. they certainly could spell we might be seeing a bottom in the japanese equity market. shery: thank you so much for that, our cross asset editor, andreea papuc. you can find her charts on the bloomberg. the conflicting trade signals
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continue to move the commodity market. wti at the moment gaining ground after four sessions of losses. now up 6/10 of 1% and above the $60 a barrel a level. gold gaining as trade rhetoric dial back. energyo to our senior reporter david stringer joins us now. how much of the move in oil can we attribute to the trade war, concerns over demand? how much because of what we saw at the g7 with president trump opening the door with a potential sit down with president rouhani? david: absolutely. all of those factors are really thought about by investors. futures in the lowest for about two weeks. earlier, they advanced about 2%. but they really seem to be responding to his after
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president trump flagged what appeared to be the potential for maybe some progress on the trade issue. we heard from the likes of a chinese state media editor who played down the suggestion. , in a broad sense, there has not been much positive from the market. there were hopes and expectations that may be some progress on iran but investors are not too optimistic for iran in the u.s. to sit down for talks anytime soon. for the rest of the week, there are some other more traditional drivers. you expect investors to be looking at data in the u.s. that is due tuesday and wednesday. it might give a little more of a more traditional look on the supply and demand balancing. back we did see gold ease
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-- some good news on the trade front this time but how are investors positioning? have we seen the ceiling for gold? david: i think it is. saying, idreea was think people really are not sure what to expect so far. a short time ago, gold was trading little changed in the early trading on tuesday. i think that is reflective of the fact investors are not quite sure how the trade issues will play out. as you said, president trump raised prospects on the trade front. gold did a race some of the gains we have been seeing. mainhas been one of the beneficiaries of trade tensions. it's also benefiting from the prospect of lower interest rates in the u.s. and the prospect of worryd cutting rates, as
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over the economy spills. what we have seen is investors continue to pile back into the gold backed etf's. holdings are the highest since 2012. there are expectations the gold prices move higher. ubs have been talking about a gold price potentially as high months. within three plenty more for investors to think that are. paul: david stringer, thanks for joining us. in a moment, back to the negotiating table. president trump says china wants to restart trade talks. we will have the latest next. this is bloomberg. ♪
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shery: i am shery ahn in new york. paul: i'm paul allen in sydney. there are conflicting versions
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of the latest phone call between u.s. and chinese trade negotiator's. president trump says china called on monday and is desperate for a trade deal, but the editor of china's global times newspaper says trump was exaggerating. to discuss trade headlines coming from the g7 meeting, stephanie miller. an olive branch of sorts, although we have the chinese site offering a conflicting version of events. we have seen this movie before. is this too early to be optimistic? we need to start with the u.s. elections in november of 2020 and work our way backwards from there to figure out when we could possibly come to some sort of agreement between the two countries. so, when taking that piece, it is hard to imagine we would be near to a big resolution between president trump and president xi soon. i think it is good to see this
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conciliatory back-and-forth but i don't think we are quite there yet. paul: what does it mean for some of these u.s. companies who are deeply entangled in china? we are told by president trump, ordered to stop doing business because if we take the example of apple, which we were discussing a moment ago, dan ives says it would take apple's three years to move 20% of its business. when you get an encouraging sign like today, what is a company to do? stefanie: i think it is really interesting. one thing i have been watching, in terms of stakeholders who matter, i am thinking the agricultural community would be one of the first groups to say, trump, please stop doing things that might negatively impact us. most farmers and states that are home to agricultural communities tend to support the president still. on friday when he ordered over twitter for companies to move out of china and stop doing business with china, that was
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almost the straw that broke the camels back for some companies who want to remind him they don't live in a country that is run by a dictator and get to do what they like to do. i would have to think some of the conciliatory moves we have seen over the last 24 hours, 48 hours might be driven by business community pushback. shery: there is no reason for the farmers to stand up against the president as of yet when he continues to give them billions of dollars of subsidies, right? stefanie: exactly. shery: to your earlier point about working, looking at the 2020 election and working ourselves back, how much would it serve the president to portray china as the bogeyman and the enemy, and just create a crisis in order to appeal to his base? stefanie: it is not just his base. most americans continue to poll to be skeptical of china.
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china is the big bad actor, the boogie man. positioning them, keeping them in that role is helpful for anyone in the u.s. because that is what most people in the u.s. believe. trump has a long leash to do things and most politicians in the u.s. have a long leash to do things that look like taking actions to protect americans from big bad china. let thing that he can't do is harm the economy. a lot of people vote with their pocketbooks, as they say. when i am looking -- working back from 2020 elections in november of next year, it seems to be no later than the second quarter of 2020 what i want to see resolution between the u.s. and china. trump would have momentum in the economy, markets and the voters that he is taking actions that are good for the united states. he can message this thing is being tough on china along the way. shery: how big of an opportunity will december 15 be when the final round of tariffs would take hold?
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getting: my thesis is, a little too close to 2020 and the real heart of the election. december 15eve the tariffs are ever going to take place. that might be the beginning of what i would consider a de-escalation period and trump may never institute them and say let's start working together. he will start rolling tariffs back to finally reach some sort of agreement with china. paul: we have been counting back from the u.s. election cycle but it is important to remember china does not have elections, which is kind of nice. could china be playing the long game here even if trump gets reelected? 2024, that is 15-year plan away. five years is a blink of an eye for a thousands-year-old civilization. stefanie: that is the biggest pushback i get. it is one thing to talk about
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elections for someone who has to have an election. to me, and makes a lot of sense for china when you think about the game they are playing and how long it is and how long it has been and how far ahead china continues to say they are looking. i think it is really helpful to have president trump in the white house. they don't know who would be elected if it wasn't president trump and they don't know what they get. despite the markets talking about whiplash, get comfortable with not being comfortable, the one thing you know is trump wants to deliver to this forgotten group of americans and the u.s. electorate, working-class group and that resonates. you could do a better job gaming out what that means. i think china has a way to work with the president in ways that are mutually beneficial. if i were the chinese, i'm playing a 30, 50, 100 year game. shery: meantime, president trump continues to insist that china
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is desperate for a deal. yet, we are getting different rhetoric coming out of beijing. this is what we heard from the editor-in-chief of the global times, now tweeting "based on what i know, u.s. and chinese top negotiators did not hold talks in recent days. both sides have been keeping contact at technical levels. to u.s.n't cave pressure." as we continue to watch these trade negotiations unfold, how much can we really trust when it comes to what president trump says because it seems like we continue to get this pattern where president trump a saying we got a breakthrough, but we are getting no confirmation from beijing? stefanie: it is hard to see what the breakthrough was over the last 24 -- 48 hours. if his version of a breakthrough is the two nations are talking, that is something they have been saying they have been doing the
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whole time anyway. a real breakthrough would be something around not increasing tariffs which is the opposite of what we got last week. the first thing the two countries really want -- the u.s. wants china to start purchasing agricultural goods. it has said it will not purchase anymore. and lower tariffs on other agricultural goods it is purchasing to protect the farmers. the thing that china really wants is for the u.s. department of commerce to give these special licenses to u.s. companies who would like to export certain technologies to huawei. both of these are going to be win-wins for both countries. china is not importing agricultural goods to the u.s., it is doing it because the citizens need them. the u.s. does not want to give special licenses to give huawei, and wants u.s. companies to have that opportunity. we can start seeing some deals around ag for huawei, it is a sign we are starting to get a final deal.
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paul: all right, sendhill strategy co-founder, stefanie miller. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers go to their terminal. it is available on the bloomberg anywhere app. you can customize settings so you only getting the news on the industries and assets you care about. this is bloomberg. ♪
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paul: i am paul allen in sydney. shery: you are watching daybreak australia. china's leading sportswear maker is feeling the heat from the trade war as it looks to boost its presence of art -- abroad. skyrocket after a $5 million despite a string of short seller attacks. speaking us lucidly to bloomberg, the cfo explains how
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the trade war is affecting his plan. >> the trade war is indeed having a massive impact on all fronts. we mainly focused on the china market and was impacted very little. company, ourbalize product sales and supply chain is across the globe and the trade war is impacting our products and retail sales. we will proactively deal with the trade war impact and i believe as long as the strategic operations are improved and implementation is more enforced, the impacts can still be controlled at this point. >> we were speaking to one of your competitors, and they were putting the number at 25% of the production capacity in china by global sportswear brands has
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been put in idle because a lot of these global brands have shifted production out of china. how does anta take advantage of that, or using that kind of production capacity now? i'm wondering could local brands actually make up for that cap we see in the market -- gap we see in the market? >> the trade war has reduced orders chinese factories and it has impacted china as a whole. this helps chinese brands to have more sourcing choices. we do see more choice, but our choice of supplier is mainly based on quality, delivery time and other metrics. so, it is not only as simple -- a simple function of cost. yvonne: so you are considering moving production outside of china, maybe to southeast china -- asia? lai: in the past, anta has been
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engaged with supply layout of its kind. some of our suppliers are already in southeast asia. we will continue to work with our current setup. yvonne: online sales is a big growth driver for your brand. how big of a part does online sales now play in your total sales? the online sales contribute to close to 20% of the gross sales. but the growth rate is relatively high. we see that the younger generation prefers to shop online. we will continue to strengthen our efforts in this field. paul: our exclusive conversation with anta sports cfo. a quick check of the latest business flash headlines. leading chipmaker tsmc is being sued by a smaller u.s. semiconductor rival globalfoundries which accuses the tech giant of patent
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infringement and wants u.s. regulars to impose an import ban. it accuses tsmc of using globalfoundries technology to intensive billion dollars of sales. tsmc says it has always played by the rules and makes all technology in-house. johnson & johnson jumped after hours after a judge ordered the company to pay far less than expected in a case about opioid painkillers. the oklahoma court said they created a public nuisance by inducing doctors to overprescribing medications and ordered them to pay $572 million to the state. saidaid it would've -- j&j it would appeal the ruling. tesla'sar accelerate and plant price hike in china. it will raise price hiks. tesla is especially sensitive to the trade tensions with no production in china get.
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shery: in the next hour, medley global advisor ben emmons will take us through his trade war playbook. later today, we will speak live to wesfarmers ceo. this is bloomberg. ♪
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at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.
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paul: good morning. i am paul allen in sydney. we are under one hour away from the market open in australia, japan, and south korea. shery: i am sherry m. -- sherry m. wayne in am selena beijing. welcome to "daybreak asia." paul: our top stories this tuesday, the g-7 rocks with no traditional communique. the declaration caused stability in

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