The Korean peninsula everywhere security at Australian airports in Moscow retaliates against the us I met Baxter with global news Sebastian Vettel wins Formula One's And Gary in Grand Prix the n.r.l. Mayor takes the tennis title at the German Open looks at the leaderboard at the P.T.'s Canadian Open and on a page with those stories and more coming up in Bloomberg sports That's all straight ahead on Bloomberg daybreak Asia on Bloomberg 1130 in New York Bloomberg $9091.00 Washington d.c. Bloomberg one of those things one Boston Bloomberg $960.00 s n Francisco Syria's exam gentlewoman team and around the world on Bloomberg Radio and by the radio plus model. I really wanted a good morning to our audience in Hong Kong and across the Asia Pacific region I'm Brian Curtis at the Bloomberg l.a. Headquarters and I dug prisoner at Bloomberg world headquarters in New York where a minute past the hour we got cash markets are now up and running in Tokyo Sydney and soul will get to the numbers in a moment the eco data for Japan looks like this this is June industrial production a gain of 1.6 percent that's a month over month reading now the Bloomberg survey was looking for an increase of one of the half percent slows slightly better than forecast the Nikkei though being pressured by a relative strength in the end visa v the dollar right now we're trading $11053.00 yen and the Nikkei $225.00 is weaker now by 2 tenths of one percent a big number in so far as the economic news is concerned will happen in about an hour from now the official manufacturing and non-manufacturing pm eyes for China we're seeing a rally in crude oil after all we were up big in the New York session on Friday with w t i picking up 1.4 percent right now an increase of one half of one percent were trading $4991.00 Wall Street Journal saying the government here in the States is said to be considering stepping up sanctions against event as a whale is oil industry right now in Seoul the cost be weaker by $3.00 tenths of one percent and given the strength that we're seeing. Not only in oil but some of the other commodities the a.s.x. 200 in Sydney is higher by 110th of one percent the u.s. 10 year treasury trading in Tokyo now has a yield of 2.28 percent Brian over to you Do you know Lee Kushan is the richest man in Hong Kong and he has made his money and made his reputation as an asset trader he buys he builds it up and he sells well New York based I squared capital is making an acquisition in Asia the firm agreeing to buy the fixed line telecom assets a business from from billionaire Li cautioning and Hutchison global we get more from Bloomberg Raimi and Asensio Joe is shutting its fixed line unit to help focus on new industry segments including data centers that as residential sales decline in global serves 9 of the top 10 global investment banks and the majority of Hong Kong's government and public hospitals the fiber optic broadband network covers more than 1800000 households and also carries traffic for wireless customers Raimi in a sense the Bloomberg daybreak Asia to Hong Kong know where 13 holdings appears to be running into problems in Macau we get that story from Bloomberg have on man we're told 13 holdings may miss today's deadline to open its luxury hotel in the cow that's as it seeks additional funding for the $1600000000.00 gave me a project people familiar with the matter say 13 holdings now plans to open the French villa hotel off the Cotai strip before the end of the year the development was started by former Merrill Lynch banker Stephen Hoang before China's corruption crackdown ramped up a few years ago opening by today was a condition of one of the hotels Chinese lenders even them Bloomberg daybreak Asia gone Sound Cloud is said to be close to a deal to sell stakes in itself to 2 companies Bloomberg says the online audio service is popular with fans and musicians but has struggled to monetize the business with ads and subscriptions we've got this company that now have a lot. Over had have expensive deals with different labels different record labels pay for the professional music they have there and of an upbringing and the kind of money to sustain itself together the $2.00 firms would have a majority stake in Sound Cloud but neither company has been identified in public yet Well Apple is taking some of its virtual private network apps off the market in China we have more on that from Bloomberg Denise Pelligrini Apple says it was required to remove the apps because they don't meet new regulations that ask all developers offering v.p. Ends to obtain government licenses now these we peons are popular in China they offer work arounds that help users the great firewall system used by the country's government to control internet access the new regulations on v.p.n. Scum ahead of a twice a decade leadership reshuffle in China expected this fall Apple says the v.p.n. Apps will remain available in all other countries where Apple does business Denise Pelligrini daybreak Asia the big British bank h.s.b.c. Will be releasing the 2nd quarter results later in about 4 hours or so we'll be covering it live here on Bloomberg The Sunday Times says they'll be a $2000000000.00 share buyback announcement that will be part of this it's seen as part of a 3 year program to run down H.S.B.C.'s cash stockpile Well speaking of buybacks they look to be coming on strong in Hong Kong we have that story from Bloomberg for shots a lot companies listed here have poured in about $3200000000.00 to repurchase their own shares this year now that's our this is 2 $1008.00 the buybacks into Anna giving a boost to Hong Kong stocks and the cheapest among the world's largest markets even off the rally into 2 year highs noted money manager value partners says the trend is likely to continue h.s.b.c. Meanwhile says buybacks strong inflows from the mainland and low interest in foreign investors with Chinese assets old supporting the Hong Kong market. A big Asia 6 minutes past. The hour here on Daybreak Asia sorry about that I want to get to Ed Baxter he's in the Bloomberg $960.00 news room in San Francisco So South Korea says it's planning to hold talks with the u.s. On the increasing the warhead limit I mean I'm imagining here that they want to be able to deliver a stronger punch right yeah yeah they want more arms I mean it's become very clear on this isn't well a kind of like a 360 are about I'm sorry 180 from what President says he want to die he says the u.s. Has accepted the invitation remember he wanted to talk now he wants more arms to u.s. Bombers Meanwhile flying over the Korean Peninsula in a show of force after the latest i.c.b.m. Launch u.s. And u.n. Ambassador Nikki Haley says there is no point holding an emergency session she says the threat posed is clear to all of us life president then says arms could be used all options are on the table. President made that clear let me make this clear when I visit. U.s. Senator Dianne Feinstein on c.b.s. Face the Nation says it's China I think the only solution is a diplomatic one I'm very disappointed and China's response that it has not been firmer or more helpful. Russia's told the u.s. That it must cut staff at its embassy and other facilities in Russia by 755 people by September 1st this in retaliation for a new sanctions law passed by Congress last week and due to be signed by the president Russia's deputy foreign minister Sergei Ribicoff says don't do it my whole point he's gone do these leads to the detriment of the interests of the u.s. President Putin says he wanted to wait in a rather long time thinking that things might improve nourish the hope that situation with change somehow he says it hasn't security is tight in airports across Australia today this stemming from Australian police disrupting a plot to bring down a passenger jet over the weekend 4 people in custody Prime Minister Turnbull saying some cases are lone wolf or are spring up but on other occasions you get quite elaborate conspiracies. This is this appears to be in that category passenger at Sydney says she can see the difference between on the inside of my back I'm full Winfrey. All say yes just actually on the bags a lot more. Most screening Yeah yeah Global News 24 hours a day by more than 2700 journalists an analyst he had more than 120 countries in San Francisco I met Baxter This is Bloomberg Brian sir all right thanks very much our 1st guest this hour is new of Dagon executive director of peak asset management . In terms of whether or not you're confident or a little bit nervous going forward I would note that we had this sell off in in tech on Wall Street a little bit of jitteriness there at the end of the week yet we've got commodity prices surging the industrial production number out of Japan looking pretty good today I'm just wondering how do you feel looking out through this week. Brian thanks for having us from Melbourne look we are seeing a mix of macroeconomic. That's leading a little bit to the especially also in 4th quarter earnings so you wasted it I didn't expect 2.6. In a broad I'm not in that he did a point takes the stand which is hardly the point to the sand expected and we are expecting watching lead to manufacturing came I think you think you know expect your end if you want to. Watching that some of the macro economic figures for a bit of direction at the moment so when you look at that in the context of what's happening in the oil patch I mean here we have w t i making a run of $50.00 a barrel is it a macro story there were oil is concerned or is it a weak u.s. Dollar story. Now that we don't think at the macro story I mean when the c.e.o. Comes that saying that the next guy that he just will be an electrical one that doesn't bode well for a good girl and girl but we. Really just a surge in commodity prices and that's that's being bolstered by global economy pick up but also wait us dollar so if it sounds like you drifting it see a little bit here you're just kind of looking for some direction is that right. The Amazon result was was slightly disappointing revenue was higher than expected but that did a lot about 274 u.s. 1000000 also. No one point standing now u.s. Trying so we are seeing a mix of corporate earnings so use that to answer your question we are keeping a very very quiet so I on and on on it's going to be that and the bank that looking to tell could be hit that was kind of an interesting development in the States on Friday because many of the consumer discretionary names were weak you mentioned Starbucks Amazon Altria those shares were down 9 and a half percent Brian this is I guess they're going to push the f.d.a. Into reducing the level of nicotine in in cigarettes to a levels that are considered to be non addictive so given questions about the economy I mean do you avoid some of the consumer discretionary names do you pile into this trade that that is negative on names like Starbucks and Amazon. It we believe that a lot of the stuff brought back to the book is a little bit helps a view we do see a little bit more value in a commodity. B.s. How can. We. Look at it sounds good we'll talk some more in a moment we'll update the markets for our listeners new Degen is executive director peak asset management lots still ahead stay with us here this is Bloomberg. Consider your need to do business around the globe. Policies of the size of the Atlantic where should you get your information how do you look at the risks from the most carefully selected experts and leaders I want to pick you up on the pulpit bones space with over 2700 journalists and analysts in more than 120 countries chosen by us to work for you Bloomberg daybreak Europe. Bloomberg $960.00 and $1.00 of $3.00 f.m. H.d. To the Bloomberg Radio plus Bloomberg Radio dot com Reggie Cadell is dean of the Martin Tuckman School of Management at n.j. 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Bay Area traffic and weather every 15 minutes on Bloomberg 960 we have a crash 80 westbound at the 12 connector Jamison Canyon it's a solo spinout crash came to rest on the right shoulder lookout for some debris westbound for before Hillcrest that's in the right lane 580 westbound just before Stan marker there's a stall blocking the left lane and it looks like there are some people outside working on the vehicle so to do be cautious there eastbound to 37 before Zanker look out for a bumper in the left lane Bloomberg 3 day weather forecast for meteorologist Scott Kaplan partly to mostly sunny today highs around 80 for the Bay 9100 in La and then mostly clear tonight with lows in the upper fifty's and that will be the exact same forecast for tomorrow and Tuesday eyes around 80 for the Bay $100.00 in Lynn Bloomberg Bay Area sports Coney Bellenger plaited both runs on a pair of singles as the Dodgers down the Giants $21.00 in Los Angeles Cory Seeger went 3 for 4 and scored both runs l a 187 straight game Rachel gave up 2 hits in one run over 5 in 2 thirds innings to pick up his 8th when Kelly I Jansen picked up his 27 save for the Dodgers 100 pence went deep to provide the office for San Francisco blockers have an innings of to run ball to take the loss the Giants have lost 4 of the last 6 but the Bay Area is best traffic I'm Johnny hall Bloomberg $96013.00 f.m. H.d. 2. 24 hours a day. Comes the radio blows your radio. News flash it is 70 minutes past the hour markets every 15 minutes here. In Los Angeles industrial production in Japan up 1.6 percent in June and that was a lot stronger than the May reading it fell 3.6 percent from seasonal factors involved there was a cold and we call it a Anyway production is forecast to rise not point 8 percent in July and 3 point 6 percent in August so looking pretty solid there China's official manufacturing p.m.i. Is out later this morning we'll have it previewed with McKenzie coming up shortly bottom of the hour and stocks in Asia look like they're moving higher today is pretty much the switch flipped and everything is is looking pretty solid we've got the Nikkei up about 15 points $210.00 points at the end of the star performer apart 3 tenths of one percent but consider this. Saying that earnings estimates in Asia are up 7 and a half percent from last year but if you strip out South Korean companies alone then that reading is actually minus one percent and one other positive note Republican congressional leaders have recommitted to overhaul the u.s. Tax code by the end of the year if investors really believe that then that may provide a boost to the oil price $49.88 the Aussie dollar pushing $0.80 trading is $7965.00 the moment 1053 the year old at a $1.17 that's a check on your market action this hour let's get to San Francisco fears. Right thank you Brian South Korea same planning talks with the u.s. To allow it to add to its supply of. North Korea's Kim Jong. Anywhere in the United States now with his. U.s. Flight. To be one supersonic bombers over the Korean Peninsula in a show of force he auto's reporting that Japan's prime minister obvious that the talk with u.s. President Trump and Nikkei is now saying I'm just taking off the terminal the prime minister will speak to reporters after that trump conversation so we hopefully will have something before we leave the air Russia retaliates against the u.s. For placing new sanctions by expelling 755 u.s. Diplomats as retribution will continue security tightened in airports across Australia in the wake of a disrupted terrorist plot to bring down an airliner Global News 24 hours a day powered by more than $2700.00 journalists and analysts to more than 120 countries he had San Francisco I met Baxter This is Bloomberg Doug Many thanks at 20 past the hour let's get back to our conversation with nifty Dagon he is the executive director at peak Asset Management on the line from Melbourne never I'm looking at a chart of the dollar on the Bloomberg terminal and boy what a slow and steady decline since about January of this year I mean we are right now trading at about the the low that we saw in early May of 2016 right around Brian referenced the Bloomberg dollar spot index earlier we're holding right around $1158.00 I mean when you look at the dollar is the path much lower from here or are we near of a field where we can hope for some support. Well look good question I mean we are seeing as we said some really strong pickup in global macro economic figures specially in the u.s. So we saw those revised consumer sentiment numbers that Naani 3.4 The j.d. Pay it 2.6 percent and we will be keeping a very close eye on that Chicago pay my figures to not expect to keep on to look at the macro economic data does remain bullish and does a pos on the upside we we do expect that this is probably a bottom a short term bottom for the u.s. Dollar and opposition up subdivision's from he never tried to stir the pot a little bit saying you were last to see get you gone a little bit but give me an idea give me something I can really sink my teeth into let's say I'm an equity investor would you like at the moment. We relate is definitely some value in commodities we are bullish Leith the m. We are bullish cobalt and gold and silver as a starting to look really really interesting on the upside a bit I mean banking Australia a little bit topheavy So we will be watching those antics because comics very well probably cycle starting to slide than many interest margins banks quayside look we are on the white banks the white commodities and Ray Taylors where we do see some downside risk in in the short term so it's really it takes paid economy 2 to answer your question what about credit I mean these credit tempting. All the credit but it really depends on what u.s. Dollar and interest rates drop so we are what you know the saw on the About Us faded here you know we've got. Maybe tomorrow when that we do expect the I'll be isolating to try some help. So I was looking at some broader question ideas this morning as we were setting up shop and everything and I was I was thinking about if if the global economy is ticking along and if companies are starting to shake off the cobwebs of the. Financial crisis so will they start moving more money into plants and equipment and maybe slow down the buybacks I just wonder what the implications are globally if companies act