Going to mars and the other things he is going to revolutionize. The broad numbers, the lack of profit, the math doesnt there is a huge mat gap between the math and the story. Is there a similar gap between the math in the story, and it turned out the fundamentals did end up justifying the story . Like tesla butt were debt driven companies. Companies who had to refinance. We were short the stock down 80 and got run over because they were able to get out of there problems because the debt cycle turned. A lot less so on the conceptual ones. The one that was painful for us was america online, which got bought out. There numbers made no sense. The term was higher than they were reporting. They were hit twice for accounting violations. Its seemingly did not matter because we have this tailwind of internet. Everybody and the brother was going to subscribe to this in 1999. They lose money on every subscriber. They got bought out. Average isting somewhere tothree. Two out of three. One out of three, all sorts of horror stories. Scarlet you are a student of history. Does the current economic, political investing environment remind you of anything we have seen . We talked a little bit about china. Less short china than we were a handful of years ago. We are more bearish on opportunities in the states. That does have to do with the fact that it is a debt driven bubble here. There are some area similarities in certain sectors. Clearly some issues are going on in auto credit. It seems to be happening. We are seeing equity cash out financing in used cars. Ive never seen that before. I have been following security stuff since the mid80s. All kinds of questionable behavior the auto finance sector. Com 2. 0 dotcom 2. 0s. Joe do you think that the new political environment, possible rollback which has people excited will bring him in will bring in a new wave of targets . Rollback which has people without naming names, i covered one of my biggest shorts, the corporate attorney became the chairman of the sec. Its time to move on. So, it is odd. ,ou dealt know how these things going back to our political discussion, you never know how these things flesh out. Who would have thought, going back to our political that the people that went after corporate crime most aggressively was george w. Bush. The only guys who put more Corporate Executives in jail was his father. Child. As the poster to theas a huge donor bush family. They were bulletproof. Instead it worked against them and other corporate criminals. There was a public revolution. The department of justice went after corporate crime. S did not. Inpolitical they paid 2016. I firmly believe that. You never really know. Do with the public. I teach a course on the history of financial fraud. One of the themes is not only the the fraud cycle follow financial cycle with a lag but it is episodic as to when there is a backlash and when there is not. In the late 1930s after the crash there was a backlash. Sec, we suck chips seoul securities acts, we saw a glasssteagall. After the Global Financial enforcementw no law backlash. E saw some legislation a political backlash that was delayed. They are all different. A lot just depends on the public and if the public puts pressure on lawmakers to do something. Scarlet thank you so much for your time. I want to hand things off to [applause] thingsto hold hand off to jason. Jason all right. That was a great conversation. You have been watching jim chain of. Asia. E to daybreak im betty liu in new york. We had some conversations out of the invest conference. We are expecting more. He says he is less sure on the country these days. More so he is saying more opportunities stateside. A wideranging conversation from the u. S. Health care system to donald trump to the kidney dialysis world. They covered a lot of ground. We are going to cover more ground from the bloomberg invest conference. We are going to have bill gross. That is going to be later in the day in hong kong. And the next day we will have paul singer. And david rubenstein. You dont want to miss those conversations happening tomorrow as well. Ecb,e plenty of nerves, the u. K. Election and the James Comey Testimony. You have to wonder what is going to have the biggest potential to affect the markets. It is a relatively risk off so far, stocks down. 71, 84 u. S. Cents. Australia, numbers coming out a lowon, we are expecting current coming up from the government. Maybe even a contraction. Futures pointing higher, a bit of a relief after the biggest oneday drop yesterday in two months. The study. Not as pretty in japan. Futures lower with the yen surging past 110 overnight. 109. We are looking mixed but still following wall street with the vix, the yen. Indeed. It has been curious. The bond market rally, the dollar softening. The equities rising. All of that, we have been talking about over the last several weeks. Lets get to the first word news with more. Treasure research after bloomberg was told china is preparing to increase holdings of u. S. Government debt. Thingces officials treasuries are becoming more attack attractive than sovereign debt. The currency has climbed 2 against the dollar after plunging 6. 5 in 2015. Again. Stocks fell oil and container ports across the middle east banned all vessels sailing to and from cutter from qatar. On imports, over 40 food enters through the land border with saudi arabia. President trump is claiming the credit for the saudi led isolation of qatar. He said it proves his trip to the middle east is already paying off. It also means washington is taking sides in a dispute between two key allies in the gulf. The governor of california is warning the u. S. Not to rest on its laurels amid competition from china. Jerry brown is in china trying to forge new links following Donald Trumps decision to pull the United States out of the paris accord. The economy would be the worlds six largest behind the u. K. We are not going to make it a oneone trumped down china. When china puts its mind is something we persist and we get it done. Those were the words that who is not looking inward. Etty indian stocks fell ahead more economists expecting the central bank to stand back on rates despite slowing Economic Growth and record low inflation. The governor urged rates reversed from 6 to five and three quarters while keeping the pinch mark study. Later today, the indian finance minister join bloomberg daybreak america following the r. B. I. Decision. We get his views at hong kong time in sydney. Global news 24 hours a day, powered by 2700 journalists and analysts. This is bloomberg. Bloomberg has been told a fired fbi director james comey will describe conversations with President Trump but stop short of saying whether he thinks the president sought to obstruct justice. The latest now on the information, our sources familiar with comey. , chris strohm. Talk about this headline. This tip the scales in favor of the white house . No. The white house is going to have a hard time with the hearing when it happens. We are expecting a blockbuster hearing. Trump is going to be front and center in terms of what kind of discussions he has with comey. He will stop short of making a charge of obstruction of justice. Individualthe conversations which when you take them in the aggregate could paint a picture for federal prosecutors were congressional investigators to make a case against instruction of justice. To whatoes that compare happened initially, the leaks of this memo and these internal memos that comey was taking. The fact that he is going to stop short of that. How is that possible when it was almost a given from those initial leaks that this was what happened. When trump was initially asked to drop the investigations of flynn or ask for his loyalty call me didnt view that specifically, those incidents as obstruction of justice. Now that time has gone by we have seen more moments emerge, including trump actually firing comey. You have more and more examples of what could be construed as obstruction of justice. Comey is going to say that it is not really for him to make that determination. He is a key witness now in the investigation being done by the special counsel. He is laying out the facts and the conversations that he has before him while Robert Mueller will include that in his broader investigation. We are looking ahead to that hearing. Intoapples latest foray augmented reality have developers excited . You solve them clapping and sharing. Whether the move will redefine the augmented reality seen. Betty how the gulf nations payute with tesla likely to play out in terms of asias energy needs. This is daybreak asia. A big story unfolding in the middle east. Qatar is the biggest lng exporter. Half is shipped to asian markets. Lets take a look at how this could create this fallout in the gulf region. Joining us now, the director of Energy Practice at frost and sullivan. Lets bring up a chart. Not sure if you can see a. A see it. Give us a sense of the exports sent from qatar to the Asian Countries. Very clearly on this chart you can see japan, south korea are two of the biggest importers. Dispute that has just ted, nice to be on the show. Asia accounts for more than 50 of qatars exports globally. Many of these countries do have an economic and political clout to see things out of control. Economic and political stakes here. What might their reaction be . What reaction might we expect . They have been neutral. Most countries have not taken sides. Again, the only issue with supply disruption is refueling carriers. Flag if this continues for slightly longer term the issues could be missionary and sky parts like for offshore fields. From theypically flown land. That raises the question of how much leverage the other are middle east countries actually have over qatar. Issue thatit is an goes back 20 years in terms of regime change and qatar. Definitely they will try to do what is possible. Its interesting because its different from the impact and pivotal ble how i have a chart to throw out there, qatar is the number one customer is japan at the moment. Nearly 20 of the countrys gas. That has been seen following. Saudi arabia supplies 40 of crude to japan. That has been steadily rising. You think that is still giving japanese Utility Companies and advantage here during this future renegotiation . I think that is a possibility. Obviously they would look for longterm secure sources. With oil andawash gas. Mean japan, the fuel for the automobile sector is affected. That would have an effect in terms of blackouts. Japan will stay neutral. Definitely a risk the Asian Countries may not be willing to take. Live from singapore, coming up next. More than 20 people sacked at uber for harassment claims. This is bloomberg. More trouble at uber. They have fired 20 people over investigations into harassment claims. That is on top of a separate investigation commissioned by uber being led by eric holder. The latest now from our tech reporter who broke the story and joins us now. What do the investigations find . Basically these were the people, it wasnt just sexual retaliation, this investigation was about those incidents that occurred at uber. They fired 20 people. Some got final warnings. Than 50e more investigations still ongoing. This is the direct response from the Software Engineer who worked at uber who said that there had been these instances of Sexual Harassment. A lot of people were terminated. They are taking steps to address the matter. This is separate from the eric holder investigation. What is the latest on that . Week,expect sometime next the actual result of his investigation has been given to the board. Thatna huffington has said uber would release the findings. It is looking like they will release their recommendations. We expect that sometime next week. I expect uber to take some public actions along with that that we dont know exactly what it will be. We have seen this revolving door against executives leaving uber. It has been awash with these investigations. Have these recent firings fit in with the departures we have been seeing . We have seen the head of engineering resign after he had allegations come out that he had Sexual Harassment claims the alphabet that he denied. Stone left. The head of finance left. The head of growth left. In number of executives have gone. There has just been in a lot of turnover. They have hired two new executives fear they are looking for more. We appreciate your insight. Coming up next, chinaexecutivesg for more. Is coming. Brownt to hear from jerry just ahead. The countdown to the open in seoul, and tokyo. The japanese yen breaking the 7 30 wednesday. It looks to be a pretty good day. We are 30 minutes away from asias first major open. Gorgeous indeed. Not so much here in new york. A chili supper day. A chilly summer day. The s p down for a second day in a row. Im betty liu in new york. Youre watching daybreak, asia. First word news. Goldman sachs Lloyd Blankfein and is killing echoing calls for the u. S. To spend more on infrastructure. He tweeted always impressed by the condition of the roads, cell phone service. To keep up. Eds apple ceo 10 cook says any tax on u. S. Companies overseas earnings should be mandatory with the proceeds spent upgrading infrastructure. Apple has two other 57 billion in cash returns parked outside of the u. S. He supports the Campaign Proposal for a onetime 10 levy on offshore income which is less than a third of the u. S. Corporate tax rate. In our view it should be a danger a repatriation. It should be a required tax. Youre not asking people that have had earnings from the International Subsidiaries if they would like to bring back money. Saying you must pay the government now or over some time. The u. K. Prime minister theresa may said she would tear up human rights legislation to hike best help the fight against terrorism. May said she wants the power to deport foreign suspects and limit the freedoms of people deemed a threat but who cannot be prosecuted. On called the election brexit. American International Group ensures that last month they hired their seventh ceo have the outlook cut. Thats after higher than expected claims. The reduction came because aigs recent track record of delivering on strategic goals has been subpar. To fall in continued japan. By 51 in fourd years. And oh socko they are up by nearly half. Games. Iving the tokyo Office Prices are at their highest since 1994. Global news 24 hours a day powered by 2700 journalists and analysts. This is bloomberg. Thank you. We are counting down the opens in the asiapacific. Lets get to add them. Lets get to adam. Even ahead of these thursday decisions, policy that list as well. A lot to make you nervous, if you have a look at this chart, volatility is certainly back. They want to hedge that. You are seeing the calls on the vix. Pretty much back to the highest levels since october or so. That shows people are expecting to place bets on an increase of the vax to hedge against any fallout. The market is not really expecting any huge correction at this point. What they are wanting to hedge against is incremental moves down as we had this huge Global Equity rally. It is pushing things up and making people anxious. It is going to be a big thursday. What should investments be looking out for . Some of the key traits we are looking at bring up the chair on the terminal here. We can see the key ones in focus. The euro is certainly key. Aroundnd and trades places like brazil and mexico. I think on the euro traded and the bullish european trade aroud places like brazil and, which we have spoken plenty about, people are incrementally feeling more positive. If you havent participated in that rally there are a few wanting to just pull back some of those positions we are speaking to wells fargo. They just pulled money out of european equities. Having said that there are still some big bowls out there. Bulls out there. They think the euro is undervalued. Adding to exposure and european equities. Plenty to play for. We have the ecb decision. Thank you so much. California governor jerry brown says the u. S. Losing markets to the governor spoke for a china correspondent in beijing following talks with president xi jinping. What else did jerry brown have to say . He had strong messages coming up from the u. S. That he did. Clearly this was a trick plan. Governor brown visited where he xi. He met president he was here to push cooperation. Governor brown really said there was a risk now, a very strong risk the innovation, the Competitive Edge u. S. Companies have had in terms of green technology, a lot of those businesses focused in california could be lost because of this decision by the white house. Take a listen. , americampetitive gain cannot rest on its laurels. Investment, investment in the public sector. We are going to lose out. That is where i think washington is going. He has been championing energy, warning about climate change. 1977, households in california. He knows the issues inside out. From the the situation u. S. To what we are seeing in china. Its the largest wind and solar market. He thinks it is going to be a key issue and key topic of debate around the midterm elections. Governor turned into this de facto ambassador for the u. S. What are the implications here for business when it comes to these ties . He thinks theres going to be growing business ties, three and a half trillion dollars. That businessg and those business ties to increase. California set itself a target of getting emissions down to 40 byrenewable energy to 40 20 30. Electric vehicles, you have tesla, based in california. Hes looking to see if there could be joint partnerships. Greater innovation, pushing down the prices, greater competition. We cant reduce our Carbon Footprint. Do that is we can with clean cars. They are not just going to come out of california. They are going to come out of china other parts of the world. Governor brown also saying he welcomes chinese investments in california. E said we need the money he said as well there is a highspeed rail link between los angeles and san francisco. There is some chinese interest there. The californias are working with the chinese on a cap and trade program. California is advising the chinese on the Carbon Emissions trading system and on quotas is to encourage automakers to increase and produce more electric