The recent restraint. Appealing to his core support in arizona. Bracing for a big one. Raised,ber eight being it was not too bad. We were laughing about it. But we are seeing things escalate. We are seeing dark clouds, wind and rain that could strengthen persistently. Here is why. This storm heading straight to the city. On thed to make landfall western part of hong kong. There is a chance this could be bigger than a ta. Already as you mentioned, reaction to this storm. We hope you stay safe. The Stock Exchange canceling premarket trade. Limited transport services. Ordered toe been shut down. The last time the markets were closed due to a storm was october 2016. This is not a regular occurrence by any means and one to watch how the fx trading in hong kong. News onsome breaking bhp. Onre has been so much focus their earnings results. Some saying they need to do more. We are getting headlines, they are changing around their board. Appointing terry bell went to the board saying mel can brendan is stepping down as the nonexecutive director, saying grant king will be standing down as a direct or at their annual general meeting. They are going to be posting their Shareholders Meeting in a sober. Thee are some changes after earnings report. We will watch bhp shares when they trade in sydney. We will watch the reaction to that. The u. S. Markets, risk on again. A lack of any crazy headlines from washington eased investor fears. We saw markets rise substantially closing into the green. The dow up 200 points. Setting you up, the rest of asia , a higher open. The buzz word is tax reform. Six are making strides coming up with some plan that could be more than the proposal we saw in july. The hope it will wake up markets. Trendaland continuing the , pretty much flat and not doing a lot now. We did see the dollar strengthen against most of the g10 currencies overnight. Futures. Up on equity well into the earnings season now. Bhp did have a great day in london after it posted results and announced its exit out of u. S. Shale. Here but holding onto those losses. We are edging higher giving the risk on tomes we are seeing in the market. 171. Up,ite tensions revving shrugging off the geopolitical risk. It could be an impetus for stocks. Relationship tween stocks and yen seems to be abating. It is the weakest we have seen in years. Lets get to the first word news. Thank you. The u. K. Prime minister conceded the eus top court will continue to influence british law after brexit. Talks. Accelerate divorce later wednesday the u. K. Will publish more details about it outside ofep london the jurisdiction of the court of justice. Indonesia cutting its benchmark wage to spur growth and south asias vast Southeast Asias largest economy. It is now at 4. 5 . A level predicted by six of 28 economists. Growth. Iled to spare the hong kong dollar continues to slide. It fell to 7. 827 against its counterpoint. The currency approached a similar low before surging after the announcement of a bill sale. Australian retailer will worth has reported 1. 2 billion, boosted estimates. They do not see any improvement in losses at its struggling discount stores, paying a fullyear dividend of 50 aussie cents per share. In0 journalists and analysts 120 countries. This is bloomberg. Look at take a closer the advance we have seen in the dow and the change in risk on offers. It does have a lot to do with the fact there was concern tax reforms would not be pushed through. Now it looks like there is a possibility. Tech especially moved higher. Highestaq 100 had its close since june. That is a sign. Lets go to the big movers. High yetit a record again. It has practically doubled to hear today. Another positive review. Dsw shoe had another strong quarter. It really came out with strong numbers that caused investors to hire in. U. S. Steel back in play. Momentum is back on. A lot of futures activity. We go to the bloomberg. Btv 202 one. The market continues to favor big caps. S p 500 net noncommercial many futures. It has moved higher while the white equivalent index has moved lower. We solve the havens lower also higher. Gold still has further to run with the hedge funds piling in. It was a risk on day. That put pressure on the gold bid. Goldill see that many bonds are still in the game. Merrill lynch, bank of America Merrill lynch had a bullish note. Ets go into the Bloomberg Gold could be at a turning point. It is rising on the trend lower. It is on track for a fouryear. Igh by early next year they believe that has a lot to do again with trump having a few more challenges delivering Economic Reforms and what we are expecting to hear from jackson hole. What yellen would say, what mario draghi would say. Expectation bid on the wednesday Inventory Data is going to show the eighth week of inventory declines in the u. S. That is giving hope to the bulls that had thrown in the towels on the opec output curves not denting global supply. Thank you. President trump in arizona for a rally which he hopes may spark a rebound after a tumultuous few days. Ofning us now, coming off the afghanistan speech the president made which someone said was a good moment. He stuck to the prompter. He was president ial. How could this change for the rally today . Could we see a reset . One really never knows. Last night was a good set piece speech for the president. He was mostly silent today to a ring a Border Patrol facility near the border with mexico. He just landed in phoenix. Typically in these events he has got a same. This time it will be immigration , border enforcement. He will have talking points. He draws on the energy of the crowd and goes with it. He could be saying most anything. Could this help his slot slumping Approval Rating . It will help him solidify his base. Withpeech monday night afghanistan, he was presented as president ial and dealing with one of the consequential issues that face the office of the president. If he can keep that going and present a political event that and advancesoking his agenda, he can help himself. I want to turn to south korea. Opened talks with south korea to renegotiate their trade pact with south korea. The South Koreans rejected this. What is going to happen from here . This is the first stage in this renegotiation the administration would like to do. This has been fraught from the beginning. It was negotiated under george w. Bush. Obama did renegotiating to address some issues with Auto Companies and labor unions. It is going to be a tough negotiation. With somekoreans say backing from trade experts the trade pact is not the problem with u. S. South korea trade deficits. There are other factors at play. It is a little unclear exactly what the u. S. Is demanding. It is only the opening salvo in these negotiations. These trade negotiations take years. Thank you so much. Our Bloomberg NewsSenior Editor in washington. We have great asked to come. What interesting name. The Real Estate Market in thailand. Hes the head of International Business. Withd exclusive interview the cfo. You are watching out of sydney. This is bloomberg. Live pictures outside of victoria harbour. Dark clouds are looming. Winde hearing a lot of building up here. Businesses are set to close. Cancelingific flights. The Exchange Free market training canceled. This is daybreak asia. It looks ominous there. Despite the odd stumble on the way this has been a strong year for the markets. Investors have had to deal with washington, north korea. Today we saw a rally. April. T since michael happen to be the biggest on the street. Is that your badge of honor russian mark i dont know if i am the biggest on the street. Im the lowest in earnings. We discussed that doesnt have to be, even if we do end up earnings, that doesnt have to be a disruptive thing for the market. But have markets been propelled by higher earnings . There are a lot of structural factors keeping Risk Appetite alive. Lower bond yields. On,hose conditions stay risk will stay on. You may get better risk return elsewhere. But, right now im at 2350. Still up on the year from 2016 but i do think in the next four weeks i will figure out whether i need to upgrade soon or not. Why . I have been recommending by every dip for various reasons. Im not convinced you have to buy this dip. Ahead of september, things emerging as we clear the Labor Day Holiday in the u. S. Earliers was on with us. He seems more optimistic about the markets primarily because the central bank is not going to pull away the punch bowl to quickly. Listen to what he said about that. People are capitulating we are not going to get anything done. Progrowthbout the agenda has been priced out. We see that around small caps and cyclical stocks. That was the wrong sound bald sound bite. Was, whateverying it takes attitude that is still there among the Central Banks. They dont want to initial conditions to tighten. I won it to get your thoughts on that. Ecb, theyow, from the are torn between two poles. They would love to get rate hikes and the Balance Sheets. They dont really want to be disruptive to the economy. They can look at the respective stock markets and say we can have a little volatility there. Its not going to break down everything. I think they are going to a on the side of being cautious or very cautious. In that construct that doesnt mean the best returns are going to be the s p 500. You might find better returns elsewhere. I think there is this reference to help priced in our these factors we saw after november 8 . One of the reasons why i am cautious on this dip, that we just saw got bought today, we will see how much followthrough there is ahead of september. If you look at the charts, the large cap tech stocks have been doing the heavy lifting. Those are not looking good at all. It has been a huge performer. If you are going to buy the equity basket it is a lot to ask for tech to lead the way going forward. That focuses on the trump reflation trade. Im not convinced they are. It is a bet that if youre going to buy u. S. Equities you are saying either tech has to kick it in again or you are going to be buying that trump is going to get traction. I think that is an aggressive ask right now. It isl, it is the interesting the turn of sentiment, the mention of tax reform, we see this risk on rally once again. What do we need to see from this ofn for us to see some type catalyst here . Is tax cuts going to be enough . Even tax cuts commit any of this real legislation is easier said than done. We had a taste of that with health care. I would argue even tax cuts is going to be tricky. You are starting to see increasing fishers through this republican party. You have the trump camp and moderate republicans in the tea party. This big push to get something done on tax is on top of the debt ceiling. The government will run out of money and not sober. That is not too far away. Plays hardbally on their agenda, does that force republicans to get democratic votes . What concessions did they extract . The debt ceiling should be a nonevent. But if it gets messy it is going to be a symbol the republican fishers. Growing fissures. That call option we got a taste of last winter is going to fall further out of the money that and has been. The weaker dollar is underpinning this divergence we have seen. You see any reversal . You should see a reversal. If you look at the euro it is overstretched. ,t still has been playing consolidating huge gains it has had. There is a regime shift underway. Pairat other currency the upside in the economy relative to its stage in europe. Obviously those can be reversed. I think the euro, you could see 120 and 125. If Current Conditions continue. All right. We have to leave it there. Thank you. Plenty more to come on daybreak asia. We were trying to avoid a beauty shop. Looking pretty brutal out there right now. Asiastes away from first major market of them. Premarket trading in hong kong is canceled after this. We will see whether that does get raised. It is 7 30 p. M. On tuesday evening. A very different look out here in new york. A beautiful day, very hot and humid. I am betty liu, in new york. I am yvonne man in hong kong. Trump is having a rally which he hopes will spark a rebound. He will address immigration into next, a subject that energizes his supporters and local authorities. Sten stanton had urged trump to cancel the rally. After his comment in charlottesville. They are accused of helping kym johnsons weekly program. This is 11 million from Companies Based in china and singapore that they say help north korea with earlier sanctions. U. S. Secretary of state Rex Tillerson says that north korea is showing a level of restraint that could open the way to dialogue, tillerson says it is worth noting that pyongyang has not conducted any missile launches says sanctions were imposed earlier this month. Mercilessthreatened retaliations with a u. S. South,y drought in the it looked like a reservoir war. We help this is the beginning we were looking for, that they were ready to restrain, they were ready to restrain their provocative acts and perhaps we are seeing our time in then some near future having some dialogue. We need to see more on the top what i want to ignore the steps they had taken so far. Chinas ministry of finance says it will not go over. The pboc says operations will theimpact Financial Markets central bank is expected to buy over 60 billion and 30 billion of tenure securities. It will help set up the nations wealth fund. This group says there may be significant inflows into chinas debt market after the launch of the hong kong connect. This is after the underwriting license in china, china was to open up the third biggest market to help with apples and promote use of the yuan. Global news, 24 hours a day, powered by over 2700 journalists and analysts in more than 120 countries. This is bloomberg. We are counting on to some of one of the some of the major market opens in the asiapacific. Chris, good to see you. Up theseeing the s p 500 most in weeks and the nasdaq up the most in two months. Chris optimism is undimmed in many ways. The same things people were talking about yesterday was the sentiment Steve Mnuchin was talking about. It is worth bearing in mind that only a month ago, the collapse of Health Care Reform came. Once we market down a little bit. It does speak to this undying optimism in market for the moment. Have a look at some of the charts. This is the sort of thing i am talking about. So,the last 12 months or the s p 500 has been bouncing off its 50 day moving average. Somes edging just below that we saw last week. Yesterday and today searched right back through that level. I think information for that may be showing up when you look at the bottom chart. That shows the index of economic surprises. Data seems to be passing to the downside this year. It is narrowing, we are getting more toward public territory. Putting that together with what we see out of earnings season in is more, it consistently to the upside than the downside. You can see why markets have a strong optimism in them. Yvonne some of the gains at the American Petroleum institute showed unexpectedly high levels of petroleum going on in gas and diesel. What is going on . We are still in the summer driving season. 2055 shows yout, the relationship between crude oil and gasoline. I think if we think about the refinery section, that tells us what has been going on. The crack spread measure of the refinery profits that can be made from crude gasoline and diesel, that has been strong. The strongest it has been in a couple of years this month. May be these things dissipated to some extent. If you look down at the yucatan peninsula, there is Tropical Storm harvey. Another thing that is dissipating but seems to be reforming. Heading back to the u. S. Gulf coast, the real extension of the company. Backdrop very sharply on tuesday. I think the underlying factor is Global Markets are pretty wellbalanced thanks to some of the actions. In the u. S. , we had a distinct oversupply. That seems to be widening. This one between bryant and the wti, the main global benchmarks in the u. S. , that one has widened again, back toward some of the levels that we saw a few years ago. A real indicator that there was more oil than they could consume. Yvonne thank you david. What about the tech markets . The battle for consumer and investor intention, that is expect up, they plan to a galaxy note eight this week. The 10th anniversary of apples iphone is still shrouded in secrecy. What can we expect from apples flagship product . Joining us now from san francisco, mark, this could be the best and biggest iphone yet. Something about 3d face technology, what are we talking about . Mark there will be three new phones. Some people are calling the high and expensive one the pro or premium. It is going to make a big splash. People are going to want to siri using applications, and all sorts of other functionality that you can unlock using her face. Your face. You said it is not exactly a feat of innovation. It is more about perfecting some of the features out there with samsung and other rivals as well. That is right, one of the folk point of this new phone is the screen, some of the functionality related to the new ar cameras. These are ideas that have been tried before. Apple is going back to its original playbook. It is going to take those ideas, add to them, perfect them and turn them into mainstream features for the smartphone. Everybody waiting in participation. From sans live francisco on that apple iphone. Up next, one of the biggest head ofrs, siris International Business joins us next, this is bloomberg. We are counting down to the major market opens. Looking at close markets in hong kong. Japan will be open. Up about 7 10 of 1 . We are looking at just over 15 minutes until the open of trade in tokyo. This is daybreak asia, i am betty liu. Middle income chinese buyers, that is rising because of the lower cost of property in taiwan. Declined investment can be expected because capital controls imposed by chinese authorities. Y. Great to have you. Tell us about the real estate sector