From the open of asias first major market. Betty it is after 6 00 in new york. We will be looking at how all of the action on wall street will play into the asiapacific trading day. Not as much action over the weekend as we saw last week on friday. Steve bannon finally being ousted. Palace intrigue is what they are calling it. We will go from focusing on what is going on in washington to what is going on in jackson hole where the fed speakers are lining up, in particular janet yellen. That is where the markets focus will be. Given all that intrigue, we did close close lower again. Haidi never far from the political misadventures in washington at this point. That is a point of focus for investors. It is a macro light week this week, but we will have fed speak and centralbank speak going into that key event in wyoming. Take a look at how we are setting up in asia. Fallingthe dollar index with all 10 currencies except the swiss franc. Kiwia stocks down 0. 2 stocks falling down 0. 2 . This is a big week when it comes socksors earnings, energy. The focus is the key technical meeting of opec taking place. Sydney futures down a little. The aussie dollar 79. 27. It is interesting because of the news from beijing, the clampdown, restriction on Property Investment that could bode ill when it comes to australian assets that have been picked up with enthusiasm from chinese investors. Lets get the rest of the world headlines with haslinda amin. Haslinda good morning. The u. S. And south korea begin new wargames on monday. Denounced by the north as regulus. Reckless. This drew an aggressive response from President Trump who wanted to fire and fury. Kim said he would watch the new exercise before deciding whether to attack. Spanish leaders say they are no closer to filing finding the suspected terrorist attack leader from barcelona. They have 12 people that struck barcelona, but three people remain unaccounted for. There were three strokes trucks with explosives and they blew them up in barcelona. The u. K. Will lay out more brexit positions this week. They are preserving asking brussels to move away from the present and move on to the future. They will publish a range of issues including Data Protection and judicial cooperation before talks can move to trade. The e. U. Must be convinced talks have been made on residency rights and the border with ireland. President got backing from all but one of the cabinet members, a show of support against conservative critics at home and the confrontational united states. He wants another fouryear term in may, easing the political isolation, boosting the economy. He told lawmakers he will accomplish more by being united. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am haslinda amin. This is bloomberg. Betty all right, thank you. Particularly dramatic week for President Trump and his team caps off fridays firing with steve bannon. But does it really mean smooth sailing ahead . Joining us for more from washington is ros krasny. In the aftermath of Steve Bannons departure, which seems to be rightly speculated for so long and finally it happened, does that mean trump and the cabinet are back on track . Ros that remains to be seen haidi and betty, but we know that trump is giving a very key primetime address monday on afghanistan. He is back to the white house tonight, his long vacation in new jersey is over. Looking to get the wheels back on. He got support from his treasury , whotary, Stephen Mnuchin had a strong statement in support of the president , suggesting he is not going anywhere. It is time once again to hit the reset button for the Trump Administration. Betty it seems that way. You mentioned steve mnuchin. In his statement on staying, he was measured by colleagues to quit. Is there similar pressure on other members of trumps cabinet . Mps cabinet . Ros nothing like the letter that mnuchins classmates said to him. But the white house economic adviser had been pretty upset for themps comments White Supremacists and the alt left last week. He may be thinking of leaving himself. We are told by the white house that is not the case. Person in the administration. Interestingly today, jeh johnson, president obamas director of homeland security, said if any of the top generals and Top National Security staff in the Trump Administration were thinking of quitting, he would advise them, dont do it. Put your country first. We need you to write the ship right the ship. This storm could be passing. Haidi you look at the opinion that ship could take effort. The approval is under 40 in key midwest states. What are the implications for the president and republicans in the 2018 midterm . Ros it is true. Three states, which again, wisconsin, pennsylvania michigan, wisconsin, pennsylvania, they were key to his victory. That was a razor thin margin he got them with. We talked about last week, his legislative agenda can take a hit if you seen as being unpopular, if members of his own party to not fall in behind him. Do not fall in behind him. His handling of the economy was seen as not too bad versus his handling of foreign policy, so that may be a slight positive for his legislative agenda. But one thing for republican lawmakers up and down the ballot , the focus in the states that they prefer a Democratic House majority. That is not good news. , the president continues to lose key business members and their support. Carl icahn what has the eye white house said if anything . Ros interesting case for carl icahn. He had been under pressure from democratic lawmakers and senators who said his involvement with the Trump Administration as special advisor on reducing regulation was really focused on regulation that affected his businesses. Those lawmakers written to the administration, various Government Departments saying this cannot go on. Icoahn hasat, mr. Icahn has exited that role. I dont expect the white house to say anymore. Haidi we will continue to watch and wait. Thank you for that. Ros krasny for us. In australia, omega earnings week, miners releasing the results. Fortescue and another one. We will get this later in the week. We have paul allen joining us from perth. For . Re we looking out this is a minor and managed miner that got into a good position. Paul i will talk to you about on,escues lowcost later but it seems weird standing outside their office in perth with what appears to be the middle of the night. We are two hours behind, the opposite side of the australian continent. When they release their numbers, they are expected to be good. It is 2. 2 billion which compares very well with the 984 million we had for fiscal year 2016. The dividend will be closely watched. Estimated to come in at 31. 3 cents, double from last year. Fortescue saying this is the right time to look at increasing returns to shareholders. Morningstar raised fortescue to and oneell, 10 buys hold. Some fortescue has had strong tailwinds with the Iron Ore Price. Can it last . Paul the question about the Iron Ore Price keeps on circulating. That is fortescues only product, so it is a proxy for that trade. February. Ong in friday we saw around seven 70 perper ton price ton price. This is g btv 1178. This shows revenue for bhp and fortescue slipping a bit. Keep in mind when you look at this one, 6104, iron ore increasing. The most significant iron ore exporter says it is expecting 100 million tons to be added to the seagoing trade this year. Btv 6103 where we see stockpiles closing in on the record high. None of this should bother fortescue too much. The cost is low, 12. 82 at the moment. That is something we will watch about these numbers, and estimated fortescue could get up to 12 in 2018. That is a low cost writer. We are talking about all of this later on when i get to go inside that building and out of the freezing cold part. I will talk to the ceo. Back to you. Mark light dark looking. Thank you, paul allen, on fortescue. And on the energy front, sempra rumoredwhich was the third bidder in the acquisition itencore oncor, they say they are said to be near the acquiring oncor as early as monday here in the u. S. There have been several, this has been a contentious bidding war between berkshire hathaway, Warren Buffetts company, and elliott management, the hedge fund that had offered contributing prices. Competing prices. We will go to a showdown in bankruptcy court. Oncor has been hit by chief gas prices. Company,e energy trying to acquire for 9. 3 billion. We will keep our i on more headlines on that story. We would get back to talking about on the mining earnings and we hear from the company about Better Business conditions for most Resources Companies reporting. On the Chinese Government stepped into restricting overseas investment. We talk about the role and implications. This is bloomberg. Good morning. Haidi you are watching daybreak australia. The australian marcus markets focus on mining, fortescue and others are with their earnings. Fromve someone joining us melbourne. Good morning. What are you expecting . Reporter obviously fortescue kicking off this morning, looking for 2. 1 billion of earnings and . 30 for dividends this as well. There was something reasonable from rio, now it is slightly weaker. I guess we are looking for more of the same trend from here forward. Year it has been a bumpy when it comes to iron ore. The was a surprise. Even the most optimistic analysts were looking for that Going Forward. They were looking at the impact chinese steel had on these prices. Paul it is a really interesting dynamic. I guess for a lot of people iron ore has exceeded expectations. I would expect it above contentious where we are trading up the moment. I guess really what is interesting is as for fortescue, the breakdown if you like of the realized pricing on the lower grade products which are being shipped. That is a lot to do with the changing dynamic of the steel industry, the utilization of plants in china, location, and ongoing reforms that are leading to less efficient plants being closed down. That is having quite an impact on the demand for the different quantity of products notwithstanding the headline Iron Ore Price. It is holding up quite well, and we will expected to maintain this 70 plus for the remainder of the year. Haidi is that comparatively, if you look at the other forecasts out there, even a more conservative view . Paul i suppose we have had a rocky year to start. 100s quite high touching a ton for the first quarter, then we experienced quite a trough through the second quarter. We could argue around the semantics of the for your yearage, but the four average, but we will have consensus upgrades through australia. Mathematically if they sustained 75 a level from this point forward, i would expect the numbers to be increasing from that level for sure. Betty these miners have done a pretty good job of managing their debt or what debt they do have. The focus is on how they are deploying their capital. What do you expect . Paul that is a great observation because obviously it has been a rocky couple of years for the Mining Companies all the way down to the small guys including gold producers we have in australia. Clearly there has been a lot of work on the cost front to get the operating cost. There has been currency as well, which is obviously quite important. Lets not forget we had the unexpected price windfall through the course of last year. Low couple lowcost, currency title wins, the Commodity Prices unexpected through the course of 2016. That is very healthy. Cash flow is perhaps unexpectedly higher than it should be. You have Companies Companies like paying down debt as well. You are right the point now is about deporting all that cash. If we take bhp is reporting tomorrow, rio we feel is a europe had a bhp a year ahead of bhp in that journey. Be buyback. We will see what bhp can do. It is about how to deploy the excess capital because Balance Sheets are in good shape. Betty maybe south32 might also buyback . Paul extending the existing buyback for sure. The company is at a red cash position. They performed with a very safe Balance Sheet. They were formed with a very safe Balance Sheet. We have seen growth queries with regard to how are they going to deploy that capital in order to make sure they can maintain their currency volumes across the business. Betty what about risks to your outlook or what you see as risks for the miners resort even upside risk as well, china growth faster than expected or more stimulus into the economy. What are some of the risks Going Forward . Paul i guess there is obviously the fundamental side of the equation from supply and demand perspective. It is always tough to get a read on china. With stimulus you would have to anticipate what is going to lead to increased demand and higher prices with inability to respond quickly from the production side. The other key risk has to be they global macroeconomic environment. One of the reasons prices are higher at the moment is they are being fueled by the volatility in the u. S. Dollar. There is always a tradeoff if you like when the currency starts to move around a lot as opposed to underlying prices. We not only have supply and demand, and that is skewed to the upside if we see stimulus in governmentthe policy, the global macro end of the spectrum which is obviously quite difficult to predict. Bhp, getting back onto elliott has been quiet it seems. Are we expecting to hear of the presentation some consideration of whether they might sell out shale . Paul i dont think we will hear anything today. That is not founded on any great science other than bhp will be trying to take it slow and methodical to agree assessing their businesses. It would seem like any decision to sell so soon after this activism and growing chorus of discontent about that investment across the Australian Market it would just feel like a bit of a kneejerk response. I know it has been a few months now, but i think bhp would like to impress upon people they are taking a slow, calculated response to potentially exit this business if that is the endgame. Haidi with Oil Struggling to hold about 50, will there be something about the shale they should consider . Paul i think so. See the probably growing chorus across the street , that this is not necessarily shale in particular or a business that is congress. We have the congruous. We have a lot of upfront. The 50 year asset life, then you harvest cash when things get tough, and when you have the cash, you redeployed and that asset to build the next 10 or 20 years. We see that with the announcement where they want to reconnect to redevelopment, buying another 50 years. It does not feel like the shale business fits that model. I guess the outlook for price and dow sprite gas prices as well is not the kind of business they are going to be able to experience the full cycle of returns as you would in conventional minerals operation. Haidi all right, thank you for your time with us. He was joining us with a preview of the miners earnings. As we mentioned earlier, fortescue ceo will be joining us later for a first bloomberg interview to discuss results at 1 00 p. M. Sydney time. This is bloomberg. Haidi i am haidi in sydney. Haidi lun in sydney. Betty a quick check of business flash headlines, the outgoing ceo ge chairman could be in the front runner for being the ceo of bloomberg. It is likely to happen within the next two weeks. M and other executives are being considered. Some are backing him up. Haidi this company will hire workers from air berlin but on lower pay. They said they would join lufthansas cheaper contract. They posted this listing in 2006 three times and filed for insolvency when the main shareholder empty had atty crusading and shareholders persuading enough shareholders to take over this company. They are just edging the 62 threshold, but they will see the offer to convince sold holdouts to reach the 75 needed for the domination agreement. Much more ahead. This is bloomberg. Got you outnumbered. The dinosaurs extinction. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Find your awesome with the Xfinity Stream app. Included with xfinity tv. More to stream to every screen. Haidi it is a 30 a. M. In sydney 8 30 a. M. In sydney. Markets a little to the downside. Lower those lower at 0. 7 . Betty it is 6 30 p. M. In new york. Lets look at first word news. Has. Haslinda canada, mexico, and the u. S. Want an ambitious nafta outcome after the first round of talks in washington. All three were committed to finding a deal that brings 23 to the agreement. Mexico holds an election in july, and the u. S. Midterms are november 2018. President trump address the money the nation on monday. He and his defense team met at camp david on friday. He said decisions have been made but gave no details. A step back to afghanistan to train local forces. The president has amended to know why the u. S. Has been in afghanistan demanded to know why the u. S. Has been in afghanistan so long. Thousands march through support jailed in ae people democracy protests. They were originally Given Community service. They were sent to prison for six, seven, and eight months. The independent judiciary of hong kong is under threat from the beijing backed government. Independent ipos are heading to a record year as Companies Rise in a rally with growing demand for financial assets. To surance, they aim the total funds raised reaching 7. 8 billion. That would be 85 increase from 5. 6year and the record of billion talked. Topped. To National Days bees prepare for the challenge of the aging population and upgrading to new technology. Society. On a cashless he also talked about saying soft drink makers will reduce the amount of sugar in their products. Global news 24 hours a day,