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tv   Bloomberg Daybreak Australia  Bloomberg  July 24, 2019 6:00pm-7:00pm EDT

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so why didn't we do this earlier? life line screening. the power of prevention. call now to learn more. paul: welcome to "daybreak australia." down towe're counting asia's major market opens. ♪ paul: here are the top stories we are covering in the next hour. wall street closes at yet another new high. investors are looking past week economic data and mixed corporate earnings. bob mueller finally testifies, but his long awaited hearing on
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capitol hill falls far short of democrat hopes. and the greatest brexit cheerleaders says it's time to act decisively to pull the country out of the european union. let's get you started with a quick check of how markets closed the wednesday session here in the u.s. it was a mixed picture across markets in the u.s.. picture, but you can see, of course, that the s&p 500 rallied to another record high. we have very strong numbers out of ups with its profit guidance. also closed texas instruments posted strong earnings. boeing and caterpillar really weighing on the dow, which underperformed. as. futures at the moment little bit in the red at that
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3018 level. yields were down with manufacturing pmi barely avoiding contraction territory. let's see how things are shaping up for asia. sophie: geopolitical risks into the fray once more after north korea launched two projectiles this morning. we will see if japan will strip its neighbor of its preferred status. nissan earnings as the carmaker confirms reports for a 90% profit plunge. >> thanks very much. let's get a check of the first word news now. >> boris johnson has promoted a string of accident busiest to his first u.k. cabinet shaking
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up the government to drive the country out of the e.u. -- a -- ag of brexit in busiest asts toof brexit enthusi his first u.k. cabinet. he says it is time to take action to move the country forward. have every confidence that in 99 days' time, we will have cracked it, but you know what? 99 dayst going to wait because the british people have had enough of waiting. the time has come to act, to take decisions, to give strong leadership and to change the country for the better. >> former special counsel robert mueller finally testified on capitol hill, but the democrats largely failed to achieve the goals they help four. some of them wanted him to read at the potentially damaging parts of the report, but he declined.
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the president later said he had had a very good day. reports say north korea has resumed a missile test. the south korean joint chiefs of staff say two and identified were fired and that they traveled east for about 430 kilometers. the early morning launch comes just weeks after kim jong-un met with president trump in the demilitarized zone and agreed to restart stalled talks on the nuclear program. there are more signs of weakness in the u.s. sales of new homes rose more than forecast. single-family home sales climbed 7% to an annualized pace of 646,000, the first gain in three months. data suggest sales are still struggling to gain momentum, despite low unemployment, falling wage gains and low mortgage rates. global news 24 hours a day on air and at tictoc on twitter,
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powered by more than 2700 journalists and analysts in more than 120 countries. shery: thank you. earnings were a big driver in the latest u.s. session despite weaker economic data and rallying chip stocks pushed the nasdaq and s&p 500 to all-time highs. after hours, we see tesla plunge and facebook rise. su keenan has more on this. should we start with the regular session? we saw a steady climb for the s&p 500, quite choppy for the dow. did see, as you mentioned, mixed earnings reports, but the strong reports managed to offset the week economic data. the story is the records once again. chip stocks were a big part of that tory. we've got the nasdaq at a record once again. if we go into the individual movers again, the fact that we had chip stocks very strong also offset the fact that some of the
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major industrials -- boeing and caterpillar -- were very disappointing. boeing having a surprise itsterly loss, showing that max jet problem continues to be strong. caterpillar, slowdown in manufacturing is really the story here. this timee mentioned yesterday, getting a huge boost as it reported its numbers after hours. analysts say the results validate a turnaround. ups.otice it jumped the most since 2008, giving transportation a live, suspending its seven-day delivery. let's go to after hours. this is the story that will probably drive friday earnings. we are seeing major names of tesla, ford, facebook all report. of course, tesla a big disappointment. we will get to that shortly.
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to that rightt now. tesla's ability to make money continues to be really the critical question here. abouts, the carmaker lost $1.12 a share, missing estimates. you can see the gyrations the stock has been through. musk is prioritizing deliveries, capacity, and cash over net income, but again, they plummeted after hours as the electric car maker posted a far worse than expected loss and backtracked from their earlier forecast of a returned to profit. let's go to facebook. this was a positive story in that you did have zuckerberg earlier in the day confirm that there is a new federal probe into antitrust, which normally would be negative, confirming there was a $5 billion estimate, but also coming in with much stronger than expected resorts, the network still adding users even as scrutiny intensifies.
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revenue jumping, showing the resilience of advertising. quickly, ford's story of slowing sales in china, that really putting pressure on the stock after hours and the strategic push toward suv's has had up.t-term costs ramping all of these stocks likely to translate into a push on stocks in the friday trade. very much for that. we have plenty more to come. we will get more on those earnings with bob o'donnell later run in global link. next, mixed earnings results and weak economic data have some worried about the outlook for stocks in the second half. this is bloomberg. ♪
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you are watching "daybreak australia." u.s. stocks pushed higher for a third day with the s&p 500 and the nasdaq hitting more records as investors looked at -- looked week earnings. i would argue that more than looking past week eco-data, bad data could be good news given that that would signal perhaps more than and central-bank help coming investors' way. >> certainly. you have seen the winds of change quite quickly when it comes to central banks. mere six months ago, the fed was completing their last hike. now it is not only holding rates, but the question is when they will start cutting, how
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much they will cut and how far the fed funds rate will drop. tomorrow, we have the ecb and we will likely get some very dovish comments. they are talking about potential to an even cut further negative deposit rate and we have the bank of japan next week, which similarly will likely get a downgrade in their economic outlook and some dovish commentary. there has definitely been a very rapid and very substantial central banks which if monetary policy was tight, which would obviously be a challenge for risk assets and if that starts to change, it depend on the magnitude of the change and how quick it comes, but i think you are definitely looking in the right space. shery: does it make sense then to push the equities rally higher instead of turning defensive? >> i would take a step back and look at it from a global unconstrained portfolio
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perspective. you have to factor in the valuations of fixed income and look at it from an asset allocation perspective. when you do that, first-order question you would ask is how should we wait equities versus fixed income? we would be slightly overweight equities and within that equities sleep, we would favor the developed markets. you have a little more leverage to the global trade situation where we have a black cloud, which we don't think the cloud will be removed any time soon. we would favor more yields and better valuations. if you look at the fixed income side, we would favor credit, so investment grade and high yield over sovereign yields. sovereign bonds, you look at the u.s. 10-year treasury, have had a tremendous one-year return. the 10-year treasury had outperformed the s&p 500, in fact, but with yields going from it isdown to 2%, we think
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much more of a coupon live from here, so we would favor more of the credit space. paul: comparatively speaking, you seem to be optimistic about yields on the 10-year. we have had commentary from jpmorgan's bob michael, seeing he sees it heading all the way down to zero. you don't see that happening obviously. >> we don't. you look at what is being discounted in the 10-year rate, coming from 3.25% to 2%, the question is how will the growth outlook manifest itself over the next couple of years? if we can continue slowing down to trend and not collapse, 2% yield is about the right warranted rate. if there is a larger problem and it stems from trade or some type of systemic crisis like that, you can clearly get the 10-year
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kind of a flight to safety, which would drive it much lower. paul: you mentioned a minute ago that you are not optimistic that the trade dispute between the u.s. and china will not be resolved any time soon, but are you at least encouraged there will be a meeting monday face-to-face? good when thes two largest economies are talking together and not turning their backs toward each other. we do think that is positive, but if you look at where the needle has moved over the past year, year and a half, or even two years ago when president xi was in the u.s. in florida meeting with trumps a fire, the needle has moved a long way. we have been calling it a soap opera. -- in florida meeting with president trump, the needle has moved a long way. we have been calling it a soap opera. but the narrative has not changed all that much. this talk of a deal where china will buy more soybeans. we have to ask questions about substantive issues, the i.t.
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transfer, those types of things, intellectual property. that's much harder, and is not only in the u.s. versus china. also, you look at europe. that is starting to heat up. we're about the one-year anniversary of the truce when jean-claude juncker was in town talking to trump. now this talk about retaliatory tariffs if the u.s. does go down the route of potential auto tariffs with the european union. that black cloud we talked about, not only is it not going away, but he seems to be slowly growing. paul: on that rather dark note, we will leave it. thanks very much for joining us. , we will be taking you live to cape canaveral. spacex and a falcon nine rocket getting set to launch.
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we will have more on that story. this is bloomberg. ♪
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this is "bloomberg let'slogy global link." take a look at the top mobile tech stories of the day. emily: another major player to the car industry reporting a setback. general motors crews unit putting the brakes on plans to deploy robot taxis by the end of the year. gm says it will not be able to validate the autonomous car's' performance safety and time for a 2019 launch. ebay is making another effort to compete with amazon, launching a service to deliver orders more quickly and cheaply. ebay will not build and amazon style network of warehouses but instead use the collective volume of sellers to negotiate discounts for warehouses, packing, and delivery. roku is working on a
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wi-fi extender that increases the reach of a router so online video streams better. there's already plenty of competition in the sector with similar devices marketed by netgear, amazon, and linkedin. those are the top global tech stories we are watching. paul: facebook was out with earnings proving yet again the company can grow broke -- both and subscribers all while feeling the heat from regulators worldwide. the social media giant confirmed it is now being investigated by the ftc on antitrust. joining us for context is bob o'donnell. thank you for joining us. we have facebook, rolling crises privacy, investigations,
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findings. no one seems to care, do they? >> know, they really don't. the company is able to crank out incredible earnings, but i think we have to be seriously concerned about where we have gotten in the world today. and the$5 billion, stock goes up when they first announced it. all the restrictions that were supposedly being placed on them along with this fine, a lot of people have argued and i think justifiably, that these are not going far enough. we have a company that is so much potentialo power, i'm frankly shocked we have not seen more regulatory action. i will be curious to see what that does to the stock price down the road as well. isly: meantime, the ftc investigating facebook on antitrust. one probe behind it, another happening now. they spoke announced this just today. you have the -- facebook announced this just today.
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how does that way on growth over the next few quarters, or does it not because we have not seen it impact growth yet? >> honestly, i don't think it does impact growth in the near term. any factors that are going to influence business in terms of regulation are going to take a very long time, right? let's be honest. the nature of the governmental progress, just takes a while. frankly, the kinds of changes that will have to happen if we are really going to impact this business are going to have to be very big, and those things are not going to happen overnight. i think short-term, there's no real concern about the profitability with what is happening with facebook, but , i think there are some major societal questions that have to be asked around the company and what they continue to do. paul: we could talk about that all day, but in terms of profitability, let's move on to
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a different company, tesla. is tesla ever going to be profitable? that was a pretty shocking set of numbers. this is something a lot of people have been a freight about for a while. on the one hand, the model three was designed to bring them into the mainstream, right? they have these very expensive cars the sold in small numbers of very high prices. model three comes out, they sell volumes, but the profitability per car, of course, is significantly less and that is what they are running into now. the big concern is how much more of their higher end cars they will be able to sell and there is still the issue of how many people really want electric vehicles right now? it is feeling a little saturated in the market, and there's the question about how that impacts tesla and other makers. throw on top of that, you just talked about the story -- emily mentioned the story of crude,
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stopping the robot taxis. tesla is talking about autopilot, but i think that will be a big concern for them in the long run as well. paul: ok, in terms of tesla, though, it is not all about cars. have had them build a giant giga factory -- well, the world's largest battery here in australia. is there some hope for tesla and the battery business? >> i think it is an interesting perspective i have talked about with some others. they are this enormous battery company. they are supplying batteries for their own electric vehicles, their own solar panels, their own charging systems, and they can do that to a lot of different places, so he think that is an interesting opportunity, but concern margins like in a lot of these commodity businesses. at the end of the day, a battery
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is going to be a commodity, so i think it is good growth fromtial for the business an overall financial volume perspective, but it does again raise questions on margin that i think will be tough for them. seeing next you some pictures of spacex's falcon nine rocket sitting on the .aunchpad at cape canaveral with 29 seconds to go, spacex calling off the launch due to poor weather. there's another window tomorrow, another tryll have them. if that fails, the next window after that is going to be in august. away fromur take that? >> well, i mean, it is an interesting launch if you look at some the details of what they were going to do. this particular launch for them was going to bring out another
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docking station to the international space station. it is setting the stage for more commercial -- not commercial, excuse me, but more travel to the international space station and eventually, the hope is for commercial travel out there, but it just shows -- you have to give musk credit. he they have challenges on the tesla side, but he is pulling off some incredible things with spacex in terms of having rockets actually return. in particular rocket they were going to use this time, i believe this is its third time in space. look, the guy is a very intelligent, smart guy. you have to give him credit for some of the things he is able to manyd drive forward in so diverse areas. we will see what happens. emily: spacex is one moonshot and tesla is another. if you talk to tesla owners, they love their cars. they don't care about cash flow and elontability
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musk's tweets, but wall street does. diving after hours, do you think the profitability issue is a near-term problem or long-term problem? >> i actually think it is both, for tesla in particular. clearly near-term is an issue and this is a reflection again of model three becoming a bigger percentage of their total sales, and those cars simply make less money, not surprisingly, then the higher-end cars. longer-term, that issue remains. yes, they have new models coming out here they have talked about a pickup truck and some other interesting opportunities. the model y is coming, but it again is on the lower end. not sure where the pickup will fall, but i think it will be lower as well. is there enough momentum and juice to keep tesla as a brand going? they are a very loved brand. the question is can they maintain that moving into other areas?
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paul: bob o'donnell, we have to leave it there. .hanks for joining us plenty more to come on "daybreak us trillion. this is bloomberg. ♪
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paul: 8:30 a.m. on a very pleasant, cool morning here in sydney. the market open 90 minutes away. futures currently unchanged as we look to the open. i'm paul allen in sydney. itry: and the new york where is 6:30 p.m. you are watching "daybreak australia." >> reports from tokyo suggest the bank of japan is divided from the need to ease policy or remain on hold when officials meet next week. on thursday'snd decision from the european central bank. the report says many board members do not see an immediate
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need to boost stimulus as robust domestic consumer demand is making up for weak exports. aazon is being lauded as success but also a problem for traditional sales in the u.s. treasury secretary steven mnuchin tells cnbc that other the company has certain benefits, it has destroyed retail across the country. he also said there's no question amazon has restricted competition and that he welcomes the justice department investigation into big tech and its practices. boeing is warning it may slow or the 737t production of max 8 the global grounding of the plane drags on longer than anticipated. software updates are expected to be submitted to the faa by september and boeing hopes to win approval to fly the max in the following few weeks. however, the ceo says boeing cannot for the cost of building and storing planes indefinitely. it is exactly one year to go until tokyo olympics.
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organizers marked today by unveiling the metals -- medals that will symbolize the game. they're are made from recycled electronic devices. they are meant to resemble "rough stones that have been polished and now shine with light and brilliance." three mile island number two reactor is set to be sold and finally dismantled. the plan has been shut down since 1979 when it was perceived as the worst nuclear accident resulting in a. partial meltdown and radiation leak. a salt lake city company is in talks to buy the site and tear the equipment down. the all-male board of directors has finally been consigned to history by the s&p 500. progress on gender balance has been slow.
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2086% of s&p 500 companies have at least one female director, but the less 14% have taken almost 20 years to close the gap. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. paul: thanks very much. policy futures, as we saw, little changed this morning. sophie has word on what stocks to watch today, though. sophie: new chris gold output coming in about estimates this morning. they also reported an uptick in copper, up quarter on quarter. we will also be watching .eaction to the exchange also, if you ratings of note i
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want to highlight. we will also be watching rio after shares fell on credit suisse cutting the stock to underperform. in the financial sector, we are pva in light of its decision to make hong kong a financial sector and reports anti-they cut the number of its advisors in half as part of its turnaround strategy. thank you for that. former special counsel robert mueller finally testifies on capitol hill, but democrats hoping for a jumpstart on their case against president trump were largely disappointed. >> as we say in the report, we did not reach a determination as to if the president committed a
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.rime >> and they say this was a devastating day for the democrats, and you know it, and everybody else knows it. this was a devastating day for the democrats. let's cross to washington. this was two congressional hearings for over seven hours, not an easy feat for mr. mueller. how did he perform? seemed veryall, he determined not to appear in a campaign ad. he gave short, terse answers, often yes or no, and he declined on several occasions to read directly from the report that he .ad issued democrats had been hoping that would animate the conclusions that mueller made in the report, which they see as something the public needs to hear because most people are not going to
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read the report. at the same time, he did not give them any sort of would be new or any other insights into the nature of the investigation or his conclusions. yes, a notable lack of bombshells. what was the reaction around washington? the most part, democrats and republicans reacted as you might expect. his testimony is not likely to change any minds about if there was obstruction of justice by the president or any sort of conspiracy. both sides will go away with what they came in for. he did say that they did not conclude that the president is exonerated, and he obviously pushed back against trump's characterizations of the investigation as a witch hunt, but trump, as we saw, felt quite good coming out of it, calling
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it a devastating day for democrats, and most republicans had joined in on that. afterward, though, democrats came out and said that in fact, mueller had made clear that there was obstruction that went on. several othero instances. we're talking about interference by russians in the election process and the trump campaign welcoming that help. there are other bits and pieces, but it does not going to push along the movement among some democrats to begin impeachment proceedings. nancy pelosi, the house speaker, continued to urge patience and to allow some of the court cases still in process to go through and allow house committees to continue their investigation into the president's finances. speaker pelosi has never been a fan of the impeachment move and she just spoke a moment ago saying white house
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obstruction will not stop investigations. is this a star or and and for democrats when it comes to other subpoenas and moving forward? >> no, democrats will continue with these probes and continue issuing subpoenas. they have several target, as i mentioned. they particularly want to look at the president's finances. there are some suits going forward in terms of getting to see the president's tax returns. they have other avenues of investigation that they will want to open. the white house has refused to cooperate in any shape or form with these investigations, so the process of getting any witnesses from the trump campaign will be a very difficult one and will not provide a whole lot of material for them to work with, so they are going to continue plodding along. right now, pelosi sees the impeachment process as politically a loser, particularly for democrats elected in more republican
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areas. it is not popular with voters at this point, and she argues that they need to build their case. paul: thanks for joining us. boris johnson has radically shaken of the u.k. cabinet after officially becoming the new prime minister of the united kingdom. he has appointed a number of pre-brexit allies to his cabinet -- pro-brexit allies to his cabinet. >> though i am today building a ieat team of men and women, will take personal responsibility for the change i want to see. never mind the backstop, the book stops here. paul: that issue, the so-called irish backstop is one of the big hurdles standing between the u.k. and brexit.
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the eu has been pretty clear about its position. the deal it made with theresa may is not up for negotiations, so what can boris johnson realistically achieve? >> well, we have seen from boris johnson a significant commitment .o get the u.k. out of the e.u. there is no question he will do the maximum he can for this to 31, and thatober that happen in one of two ways. he could try to renegotiate the agreement with the eu or pull the u.k. out without a deal. as you say, the eu has been very clear that they do not see any room for negotiation or softening of the withdrawal that it reached with the u.k. last year. the irish backstop remains contentious, so there are challenges to this approach.
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it seems at this point unlikely that he will be able to renegotiate the withdrawal agreement with the eu. the british parliament has been deadlocked as well and he does not have a big majority, does boris johnson. rejected theresa may's deal three times and it has also rejected a no deal brexit, so could boris johnson essentially do the absolute minimum in some respects and let ? e clock wind down >> i think that is certainly an option, and given his personal commitment to seeing brexit through and given that he got to this leadership position by focusing on that issue, certainly he will try to move forward, but again, there are significant challenges. he holds a very slim majority in parliament, as you say, just three votes, and even that slim majority could decrease.
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he's looking at ways to get a no deal scenario through parliament, including considering the possibility of suspending the parliament. last week, parliament passed a measure saying basically -- limiting the possibility of doing that, though it's not clear if that is binding. parliament is also looking at its own measures to prevent a no deal scenario. they can pass laws to extend article 50, extend that deadline . they can also look at a vote of no-confidence. 's wouldscenario, mp have about two weeks to form a new government, but it could also lead to a general election. if there is a general election and boris johnson prevails, he obviously has more reinforcement for his mandate, but in a general election, there is a possibility that the opposition leader, jeremy corbyn, will come to power, so that is a big risk. shery: we are now seeing new
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includingkey posts foreign secretary and chairman of the exchequer. that spell for u.k. policy, brexit policy? >> well, prime minister johnson was clear his entire new cabinet would have to support him on brexit, including the prospect of a no deal. resign some 15 ministers before they could get asked, and the new appointments certainly underscore johnson's single-mindedness on brexit. in his speech today, he did talk about other domestic issues, but it was all wrapped up in the of the u.k.'s national identity, especially with regards to brexit. i think you will see the cabinet with the primet
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minister, but again, he does based challenges from parliament where he holds a slim majority and significant challenges from the eu in terms of trying to renegotiate the withdrawal agreement. >> prime minister johnson talking about stepping up preparations for a no deal brexit. what does that mean in terms of what the u.k. needs to do in order to minimize the damage and fallout on the economy and trade relations? >> johnson is taking power just three months before the u.k. is lated to exit the e.u. is very little time to make significant preparations for .his no deal scenario in the event of a no deal crash out, most economists expect a significant downturn, at least in the short term, to the u.k.'s economy. less's likely to be
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negative but still significant downturn to the eu economy. the eu economy has already experienced slower growth. .he u.k. has seen lower levels the u.k. does feel it is prepared for a no deal scenario, but the time is very short for additional preparations to mitigate the impact. if markets are already factoring of ain, you can see less dramatic reaction. nonetheless, with just three months left to go, there's very little time for new preparations . paul: thanks very much for joining us. australia's 10-year bond yield
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has slipped again, down another for basis points. .t has hit a record low 1.258% that aussie 10-year bond seems to keep slipping lower and lower. of the most aggressive calls for where the bank of australia is headed next. the rba really in a position of chasing a deal on the aussie 10-year yield lower. shery: seems to be a race to the bottom. we are counting down to gdp figures from south korea in the next half hour. we will discuss issues weighing on growth next. this is bloomberg. ♪
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shery: the next hour will bring the latest gdp numbers from south korea. the median forecast of economists we surveyed project economic growth for the seven
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quarter as 1.9% year on year and a fraction over 2% for 2019 as a whole. that would put growth at close to a decade low. the surprise rate cut was announced last week underscoring a sense of urgency about the pressures facing the economy. when be ok governor says they will consider responding if the economic picture worsens and that they still have room to act, but not much. economics sees south korea's suffering from external pressures such as weaker global demand and the downturn in the tech cycle. also, any recovery could be hindered our shortfalls at home. paul: thanks. if there is a rebound in second-quarter gdp, what will it mean for the bank of korea? kathleen hays is here. could this mean the be ok gets a reprieve and does not have to raise rates next month? kathleen: it would have to be an
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awfully big rebound for something like that to happen. korea is an export-dependent nation. it hits way above its weight, 11th biggest economy in the world, fourth biggest exporter. when you see exports getting hit, when you see a trade war that seems to be taking a bigger toll month by month, you figure they've got to be worried about gdp no matter what the rebound is today. let's go to the bloomberg library and take a look at a really nice, simple chart. it shows you the latest month, 13% year on year. seven months in a row of these a very exports, and interesting way to look at this is first of all, two things endangered our semiconductor exports. are also at risk. bloomberg intelligence did a really interesting look at some
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of the main things that are hurting south korea when it comes to exports and a trade war. is notde war means china exporting as much to the u.s. so they do not need as many imports from south korea. the slowdown cuts demand for korean exports or goods. they are just not buying as much stuff. another thing a trade war does, there's always questions about the technology sector, it is hurting prospects for a turn in the damaging semiconductor cycle. one reason for the boj to be now,ed, this whole thing testing the latest from japan. they have plans to potentially move south korea from japan's white list, it's most favored export destinations. damagingd be another blow to those exports that are already weak and therefore to their export dependent economy. so many challenges for
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shipments from south korea. does this mean the be ok -- the bok will have to continue cutting? kathleen: the governor was speaking a few days ago and said if the economic situation worsens, if uncertainty facing is economy grows, the bok ready to do more. very important, he noted when speaking to parliament, that 2014 doesorecast for not reflect the potential impact changing forecast. let me get gdp up on my screen. can see that the blue line is the economic forecast. bank ofe line is the korea's key rate.
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you can see how in the last several months since donald trump amped up the trade war and all these things have been increased, look how their gdp forecast has come down so steadily. they finally cut their key rate after hiking, but it seems to me everything is adding up to the bank of korea moving again potentially in august. 's three-year note yield is still signaling that is what they are looking for. thank you so much. our global economics and policy editor. let's turn to sophie. what signals are we getting when it comes to growth? sophie: it has been a mixed bag across industries in south korea . the outlook no more certain with domestic and external factors not making for the most stable conditions. take hyundai motors, for example. they did put in a decent showing this week for the second quarter as prophet did continue to recover, but car sales by the
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numbers slowed compared to last year. dragng demand was also a on lg displays. it's just one of the korean companies figuring out next steps. next week, we we'll get final second-quarter results from samsung, the bellwether for the global supply chain. if experts continue to we can come that could exacerbate pressure on confidence as well as investment. structural investment has been slowing since 2010. that does not bode well. and construction remained in contractionary territory through the march quarter when gdp was dragged lower by a much steeper than forecast loss in as well as exports.
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also, businesses may be less hiring.d and paul: thanks very much. there is more ahead on "daybreak australia." this is bloomberg. ♪
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paul: a quick check of the latest business flash headlines. writing of the global economic uncertainty as well as street protests in hong kong. louisve revamps of vuitton and christian dior helped fuel growth. we've been told commonwealth bank of australia has cut about 20 of the 95 positions at its singapore office. the cuts affect staffing in institutional banking and markets divisions.
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we've been told it is planning to add more staff in asia and find alternative positions for the employees in singapore whose jobs have been eliminated. we will break the korea gdp numbers at the top of the hour. this is bloomberg. ♪ we're the slowskys.
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we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not.
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paul: good morning. we are under one hour away from the australian market open. shery: good evening from global headquarters in new york. sophie: and i am sophie kamaruddin hong kong. welcome to daybreak asia. paul: wall street closes at another new high. facebook grows advertising and users but adds a new investigation. the ftc


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