Amazon raises cash to pay for whole foods. Goldman sachs takes a game to silicon valley, roosting storage for top tech talent. Betty this is daybreak asia, live from bloombergs u. S. And asia headquarters. I am betty liu, it is just after 7 00 p. M. In new york. After 7 00 a. M. Here in hong kong. I am shery ahn. Volatility falling, the japanese yen, and gold retreating this week. It looks like geopolitical tensions over north korea are waning. But political tensions in the u. S. Are on the rise. Betty you could not see that reflected in the equity markets by any means. That turmoil you are seeing engulfing the president and throughout the country, largely shrugged off by the equity markets. Certainly no rally like we saw the day before. We had markets closing unchanged. Ingestrs still trying to all the news and the impact at my it might have on business and the economy. Shery that Economic Data out of the u. S. Good july retail sales, that probably helped. Lets look at the markets in asia. We see a positive upside for new zealand stocks in the open. It is the Third Session of gains. We see the kiwi dollar holding steady. The aussie fell to the lowest level in a month, now holding at u. S. Cents. 0. 5 , gaining a second session. Today we have premium wage prices coming in, keep an eye out for that. Futures not doing much. Pointing marginally lower. The japanese yen weakened, holding up the 110 level right now. At the nikkei rose more than 1 5 of 1 , led by the tech firms. Moving, 19,es not 735 is the level. They are taking in the jampacked events calendar. You do have the fomc releasing their minutes. And the u. S. South korea joint military drills next week, not to mention mario draghi, a lot of the markets a lot the markets have to digest. Betty absolutely, you nailed it. We have a lot of events coming up. The fomc minutes will be released tomorrow in the u. S. Investors perhaps hit the path button. I want to pull up where we ended the day in the markets. Pretty much unchanged. 1 , theaq down 1 10 of dow adding any points, up five. The s p trading flat and closing flat. Theident trump stoking flames over charlottesville, repeating his controversial claim there was blame on both sides. He added that the liberal protesters also bear responsibility for what happens. His is what he said in Dramatic Press Conference a trump tower. President trump there was blame on both sides. You look at both sides i think there is blame on both sides. There is no doubt about it, and you dont have any doubt about it, either. Betty a former washington reporter for bloomberg joins us now. Was just an incredible i managed to read the entire question and answer of this press conference, just an incredible backandforth with the press. What is going to be the fallout from here . It was quite an extraordinary press conference to read it was meant to be on infrastructure. Of course, President Trump has gotten into trouble again with comments, applying a moral equivalency to the violence in charlottesville over the weekend. The reaction across the board was pretty strong, even from republican lawmakers. They really drive they really drew the line at some of the comments he made. Betty indeed. This was about infrastructure, but he was asked about steve care. , about health what are people saying about who has control here, or who has any influence on trump and what might this impact have on the legislative agenda . Chelsea the only people cheering his comments were the socalled all right group altright groups. Comments about steve bannon, his chief strategist at the white house, who has come under a cloud. A lot of talk about what President Trump will do with steve bannon. Time will tell on what the future holds for steve bannon. That was one interesting point. Steve bannon being aligned with these altright groups. If thee wondering president is fueling the concern about trumps alignment with these groups. In terms of the legislative agenda, lawmakers are not in washington. When they return in september, they do not have long to raise the debt ceiling, file the bills. We will see what kind of impact that will have in terms of the agenda. Seen in the past few days Corporate Executives leaving his manufacturing counsel. Who is left on his side to help out with his Business Vision . Trump spoke quite ceos thatabout the have departed the council after these comments. In the last few hours we had the aflcio, the Union Representatives leave. It remains to be seen what the future holds for these councils and if other ceos are willing to align themselves with President Trump to get any kind of value after being from being on these councils. Shery thank you for joining us with the latest on the president s comments. Lets get the first word news. Senior military officers of america and china have agreed to improve communications, especially on sensitive issues, such as north korea. Chairman of the joint chiefs of staff called his counterpart in agreed between the pentagon and the Chinese Defense ministry. But the mechanism was never put in place. Crown as reclaimed its the top owner of treasuries, increasing its holdings for a fifth straight month, 1. 15 trillion in june, up from a month later month earlier. Japan and china account for more than 1 3 of all Foreign Ownership of u. S. Bonds. The imf admitting its growth forecast for china will cause at the will cost rising debt. An average pace of 6. 4 from this year through 2020, compared with the 6 estimate a year ago. Corporate and Government Debt will raise 300 of gdp by 2022. The actions of the government are very strong, controlling the egovernment over the economy. A disadvantagebe in efficiency and growth, in situations of crisis, that comes in handily. That is an advantage china happens has. U. K. Inflation weakened unexpectedly in july, making it tougher for mark carney to champion increases. Prices rose last month, less than the 2. 7 forecasted by economists. Whenound fell in the news his hikes on rate hikes were drowned out. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. You, we have breaking news out of australia. Fairfax media announcing for your earnings. 83. 9 aussieme at dollars. Their Dividend Per Share, 0. 2 aussie cents. Is a large publication of newspapers, entertainment, magazines. They have analyst recommendation sells. Ys holds, and, they are announcing the fullyear Dividend Per Share as. 02. Their net income came in at 83. 9 aussie dollars. It is the earnings for Fairfax Media in australia. We are just about 50 minutes away from trading. We will get you a check of that stock price. It surged 18 this year already. As soon as the markets get trading. That is the latest from Fairfax Media. Betty we have quite a few earnings coming out from australia. A closer look at what moved the market today. In the u. S. It was a mixed session. A case of good newsbad news. Su keenan has more. Americans are spending, but what does that mean for the fed will they speed up the rate of fedpeed up the rate hikes . Look at the close. Day,oks like an eventful but all three benchmarks were up until we got to retail sales. Lets go to the big movers. Stocks moving in different ways, wynn resorts, positive results. Macau is doing well. Coach come a weaker than expected outlook because they have a hard time integrating the kate spade handbag purchase takeover. Advance auto parts, weaker earnings. That is causing investors to get sell. , a lotgo to g btv 5858 of these recent selloffs marked by the red line, to the volume below, have been on the low average volume. Can you imagine what will happen in the full market where you have full participation with these kinds of headlines . News now bearing on the daytoday trade. Betty lets get more details. Why did so many Retail Stocks plunge on pretty good news . Amazon, a lot of analysts are saying that is the overarching story. Lets go into the data will quick. Go into the bloomberg at g btv 1649, if you have the bloomberg at home. U. S. Retail sales have a bumpy ride. The white line is. Tell sales, going straight up in july. The blue box below is auto and gas. What you see is a very strong story. In terms of the headlines weighing on the market, they were looking to find what retailers, what brickandmortar stores have an amazon free space. Lets go into some of the headlines. The concern is, there are so few places out there outside of amazons reach. Where we saw the real declines in a lot of big box retailers was in the specialty stores. Superlook at the s p 500 composite specialty index, it had the biggest drop since early in the spring. That is an indication of the pressure of amazon. Even on the best days of the year, the strong data on sales, there is concern for the likely livelihood of these retailers. Wti, we are seeing oil, reversing two sessions of losses, gaining 3 10 of 1 . All of this ahead of inventory data. What are we expecting . Su you are thing advanced reports as we get into the wednesday session. There could be a bullish report. What is interesting, we had a top Global Analyst from believes inll us he the race between opec, which is losing money as a cuts back, to boost price, and the show producers, who in the u. S. Are able to hedge themselves and do well when prices are in the 40 range. Take a listen. The markets are going to win, and it will be shale. Position, even with russia, is not sustainable over a long period of time. They are losing revenue doing what they have done. You get the prices up, u. S. Producers hedging through 2017 into 2018. They can survive at a lower price. Su back to you. Betty we have breaking news on uber. Entering anber is agreement with four investors and they are identified as didi, softbank, general electric, dragoneer. Billion, at the 2016 share price. Also, tencent said to be exploring a potential investment in uber. The headline is uber said to be entering Exclusivity Agreements with four investors. We will keep following this story for you. A lot of headlines on uber. We will have more from san francisco. This is bloomberg. Shery we have breaking news, fouryear earnings come final Dividend Per Share coming in at seek hires ands, matches job seekers. They are related to Career Opportunities and offer those related services. Fullyear net income coming in at 340. 2 million aussie dollars. We are also sing Dividend Per Share at 21 aussie. We have seen the stock take off this year. Around 23 . When it comes to analystss recommendations we see three buys and seven holds and five sells. Aussiecome, 340. 2 dollars. Nafta,lets talk about negotiations on a revamp begin with more than trade deficits on the agenda. Key points include inequality and labor mobility. We have a professor joining us from a vancouver. You are in the country that has the least problem in these negotiations. You are in theit is down south n mexico you have heard trump to, to say he is willing terror this agreement and pullout if the u. S. Does not get what it wants. What can be done in these negotiations . It seems to me like there will not be that much of a change, given the document that was submitted by the trade representative a couple weeks ago. Want to be intems conformity with the wto, or the International Labour office. There are a couple points there want considerable change, like the elimination of the chapter 19 on the disputes resolution. Certainly we have heard President Trump talk about tariffs on automobiles coming back from mexico. What could be some of the levers that could be pulled in order to keep the u. S. In nafta and still be enough for mexico to swallow . I do not think of the tariffs idea will go far. Ultimately, that would end up affecting consumers. I think that the u. S. Business community is also going to fight against that, because the value change chains are so integrated now, among the three countries. Anything that is done to hamper trade will be a problem. That is not the language contained in these initial documents. That seems to be what traders are thinking because if you take a look at the mexican its phenomenalee strength of this year. You the strength of the mexican peso, which has gained over 15 . We see volatility fading. There is always concern we could see pockets where negotiations to take place. Any sectors of the nafta renegotiation where we could get surprises for the market . It seems like the is one thatector, has the greatest stake in the market. These companies are u. S. Companies. If anyone gains in the north American Free trade agreement it is the automobile sector. Loopholest about the related to groups of origin in order to avoid manufacturing and job losses . Labor unions have called for those loopholes in the groups of origin to be closed. Could we see changes on this, as well . Gerardo yes, that seems to be one of the items where the u. S. Government really wants to enhance enforcement of that. There is no figure given as to whether the rules of content or whether itsed, is primarily about enforcement. Canada is also part of this negotiation. They have said the country wont take just any deal in nafta talks. When you take a look at their relationship, how balanced is it . Right now it is pretty balanced, considering trading goods and services and investment. There is balance between canada and the united states, which is why i do not think canada has that much to worry about. Except for some sectors and agriculture, where there is management in the production of dairy, poultry, and eggs. That was on the chopping block for the tpp. Outcome of that was one of the first decisions of President Trump. But that was one of the items the former government had given into. The will be Something Else government will request canada to do. Shery thank you so much for joining us this morning from simon fraser university. We will talk more about trumps policy later on daybreak asia. In half an hour, we discuss immigration with a u. S. Law firm focusing on that sector. Betty and more on nafta and what the negotiations mean of four asia. A former trade negotiator with the japans Foreign Ministry and his perspective. This is bloomberg. Shery welcome back, lets get a quick check of the latest business flash headlines. They have rolled out a partnership with the yelp in four u. S. Cities to tap into chinese travelers. Tourists will be able to pay in yuan for those that acceptalipay. It is available in new york, los angeles, san francisco, las vegas. They can also shop at 4 million u. S. Merchants. Betty apple selling almost 2 billion worth of bonds in canada to get dividends. A spread of 80 basis points over the benchmark yields. It would be apples First Canadian bond sale. On this storyd the just broke on uber getting investment. Shery it is 7 30 a. M. Thursday here in hong kong. A clear day out there. And rainy,ly hazy but a Beautiful Day in the morning here in hong kong. I am shery ahn here in the city. Betty it is 7 30 p. M. Tuesday here in new york where markets unchangedty much despite good retail sales number this morning. Showing consumers are still spending. I am betty liu here in new york. Shery you are watching daybreak asia. Has stokedt trump the flames in charlottesville, blaine both sides blaming both sides for the violence. Hadaid that liberals violently attacked of the rightwing side. Third the president s attempted to address the controversy over his initial reaction. President trump that was a horrible day. It very closely, much more closely than you people watched it. You had a group on one side that was there and a group on the other side that was also very violent. And nobody once to say it, but i will say it right now. Press conference, President Trump attacked Business Leaders leaving his advisory team, saying, there are plenty more where they came from. He accused them of grandstanding. It followed three other leading ceos after the out the door. Another urged to quit the Business Council because of trumps comments over charlotte bill. The president of iran is warning the countrys Nuclear Program could be ramped up if the u. S. Continues to trenton sanction. Rouhani said the most direct attack yet of the 2015 deal stuck with the world powers. President trump has said he wants to abandon the accord and Congress Imposed new sanctions on tehran this month. New analysis of chinese macroeconomic status showed steel will have up sharp decline. [indiscernible] rbc expects a slowing chinese Property Market to weigh on fundamentals. It is justtoo it is just too plentiful. The currency changes in those two countries, makes the production of iron ore cheaper. Over time, chinese production of iron ore will taper off as they use more scrap. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am emma chandra. This is bloomberg. It seems of the column has returned to the market. We see volatility fading after geopolitical tensions over President Trump and north koreas war of words. Take a look at the u. S. Financial indications on 5038. Erg, g btv5038 you can see the financial index tightening the most since may. If you look closely at this chart what is happening this week, you can see financial conditions are easing once again. With volatility sustained we could see a quieting down of the fed hawks. They have been a little worried about volatility not being there, and that unending market rally. Lets get more and what is happening across markets and what is happening across asia with bloombergs Global Market editor, adam haigh. We are seeingct these financial conditions easing, it is a fact that appet