♪ resources dominate australian earnings. all set to gain from the commodities rebound. it extends corporate tax rates to help slow growth. the eurozone delays greece's latest payout over a bottle about i.m.f. involvement -- battle about i.m.f. involvement with hearings from a former finance mr.. it is just past 9:00 here.

just about an hour from the open. is the third major market to come online. in about 15 minutes, i will be joined by malcolm. it 6:15 in hong kong or 5:15 monday monday watching in new york trade you don't want to miss that. a quiet start to the trading day. closedave u.s. markets on account of presidents' day. no drivers when it comes in particular to the fx market. in new zealand off about .25%. qe dollar is unchanged. the aussie dollar seeing quite a bit of strength. deutsche bank saying there's more upside with the shrieking deficit driven by the surge in commodity prices -- shrinking deficit driven by the surge in commodity prices.

although giving back some of the gains. crude is still range found. this is the narrowest trading range in 13 years when it comes to oil prices. bhp reporting after local markets closed today. let's take a look at how european stocks ended up. it was a bloodbath on account of unilever plunging 5% at the close after they backed out of the mega takeover. that dragged the rest of the market down. headed for its biggest advance in more than two weeks. sterling was higher against all of its peers. let's first word news in new york. >> thanks so much. shares of the highest in five months after the company approved a $2.4 billion share

buyback to improve returns for stakeholders. the board voted to repurchase more than 56 million shares. the first share buyback comes after cash and investment flow to nearly 6.5 billion dollars at the end of last year. defense secretary james mattis says the u.s. is not going to seize iraqi oil. he met with leaders under the shadows of the president's comet and the travel ban. he said u.s. forces would be there for some time fighting the islamic state alongside iraq's army. >> the resilience of this army recognized it took casualties. it has reconstituted itself, both equipment and personnel wise. as you know, has only crossed the line of departure going against the enemy and west mosul.

this was not a foregone conclusion for an army that only a year ago many people were questioning. ministers dashed any hopes greece might've had of getting their hands on new aid payments quickly. they are demanding tax and pension reforms before signing off on an agreement. having previously said the talks would be the last chance before european elections, the e.u. agreed to pick up discussions in the coming days. >> we have to realize there is no agreement. there is no political agreement at this point. get is a good step the institutions -- it is a good step the institutions have enough confidence and a common agreement to go back to athens. >> a new poll suggests marine le pen is gaining ahead of the first-round vote on april 23. the opinion survey has the national front leader up 27% with the independent at 20%.

the poll found he would easily to eat le pen -- defeat le pen in a runoff. bond margins widened the most in four years. the russian ambassador to the human who clashed frequently with the u.s. died suddenly at 64. he had been mosque we's envoy to the u.s. -- moscow envoy to the u.s. since 2006. putin paid tribute any form u.s. ambassador called him a diplomatic maestro. dayal news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. haidi: thank you. let's look at what is happening around the country.

we are still in the thick of earnings. >> earnings heavy. celtic out with about $470 million. we've seen resurgence in oil prices. revenue was down 10% on a cost basis. a final dividend of $.52. we are still waiting on oil. we are expecting to see recovery there as well. we will have the c.e.o. on later. haidi: we will be looking to after the close when we will be getting bhp. what do we expect? >> the market expecting great things from bhp, a sevenfold increase is increased on the higher prices -- expected on the higher prices. $3.4 billion expected. $24.9 billion.

a lot of analysts will be watching for the bounce between debt and the dividend. deutsche bank expecting a dividend of $.28. getting the notes from the february meeting. further upside. >> we don't hear much about it in the minutes. in last statement, he noted the appreciation of the exchange rate. that is the line on the dollar at the moment. appreciation is what deutsche bank is forecasting. essay surging exports could push the aussie dollar up. there is an interesting bit of analysis from deutsche bank on the high. haidi: 80 and beyond. we will be watching out for those minutes. still staying with earnings.

loss reported a 48 million australian dollars, underlying the profit of $3.2 million aussie. reporting an interim dividend of $.20 aussie. that is coming through from seven group. we will get more analysis later on those earnings. we will be joined shortly by the australian prime minister for an exclusive chat. do stay with us. we also have major guests from a story throughout the day on bloomberg television. ing frombe hearaing peter. day, angela kinsey talk about the extraordinary recovery when it comes to iron ore prices.

singapore has outlined a budget aimed at supporting the struggling offshore energy and construction energy. budget, defense spending took up a fair chunk of the expenditure. it is quite a different focus this time around. >> this time, they are looking at not just a few things to help in the short term but also the medium to long-term. budgetake a look at the laid out by the finance minister. basically it lends a helping hand to the marine and offshore industries. we are dealing with cyclical weaknesses. they are deferring some levees on foreign workers in those industries by another year. to support the construction industry, nearly $500 million

u.s. in public infrastructure projects were brought forward. one of singapore's big players is involved. that gave a lift to those shares. needsd terminal five critical infrastructure that would cost tens of billions of dollars. that is were some of the spending will be going. it is not quite built out already. other things included support , increasing the retirement age to 67, and increasing the corporate tax rate. budget heavilya focused when it comes to the future economy. >> exactly. singapore's 2016 growth was below expectations according to the finance minister. we did see a pickup in the fourth quarter of last year. that was largely driven by a recovery in exports.

for example, the situation in china. now with a cloud over the world export situation with possible protectionist measures from the u.s., there are concerns across many countries about what will happen into the future. the finance minister said they need to go beyond general stimulus. we need to reposition for the future. this is singapore could get 3% growth every year and the budget did help to work toward achieving this. focus on medium-term measures to boost competitiveness. one surprise with the carbon tax which would be introduced by 2019. that was not an expected measure. haidi: still some surprises from the singapore budget. thanks for that. theill take a look at why bank results could be the best

or worst depending on how you look at them. next, australia's prime minister will join us to talk about the economy and what he is doing to salvage the aaa rating. our exclusive interview with malcolm turnbull is next. this is bloomberg. ♪

♪ haidi: i am haidi lun in sydney. you are watching daybreak australia. economists are tipping growth at 2.4%. the reserve bank seeing expansion of 2-3% in 2017. those numbers look robust. headwinds coming from sluggish inflation. a strong currency and rise of protectionism globally. here to talk about all of that and more is the austrian prime minister, malcolm turnbull. prime minister, it is a pleasure having you on. i want to start by talking about investing in australia's future economy. the reserve bank and i.m.f. have

called on the government to borrow more to invest in infrastructure. it has been reluctance. i understand you want to keep the aaa rating. >> there is not a reluctance to invest in economic infrastructure. we are doing so. we have a massive infrastructure program of $50 billion. that is not including the national broadband. we are focused now on investing more. governments talk about investing, often they are talking about making grants. what we are looking to do now is to take a more innovative approach to investing so we take an economic interest in projects. we are looking to do that in partnership with state governments and the private sector as part of our city deals policy. we are taking a much more innovative and commercial approach to investment in infrastructure. we are determined to do that. we are focused on reducing government debt.

that is a function of living within our means. what we have got to do is reduce the deficit. that is being driven by in excess -- in excess of government payments compared to revenues. haidi: a lot of that investment is happening in major states where it is not as badly needed. should the government be doing more given the low rate environment, to be barring more and investing more in infrastructure? even the i.m.f. says that financed infrastructure -- debt-financed infrastructure will help support aaa even if mewans cutting the deficit of a lower case. >> we have committed $1.2 billion to a very important tunnel project linking up with the port. that is one of many. around australia, we are putting tens of billions of dollars at

work in infrastructure. we are always looking for new projects. we want to invest more in economic and for structure. you are quite right. the i.m.f. is right to point to that. it is a big driver of growth. very important driver of growth. haidi: is that obsession with aaa preventing the government from doing more politically? >> we are focused on bringing the budget back into balance. as you know, that is our goal. we have a plan to do that. we set out in the budget last year and took that to election and were seeking support of the senate to all of our measures. it is very important we support investment. that is why we are bringing down company tax. we have a tax plan reducing company tax over a gradual path. signal ton important investors because we know if you increase the return on investment by reducing business taxes, you get more investment. if you get more investment, you get more jobs. haidi: i want to move on to the

global trading environment. the president of china has spoken about the willingness to step up and become a more responsible player on the global trade state. what does this look like given you have president trump's america first and rising protectionism in other markets? what would you want to see from china? do you want them to address the issue that has been contentious? >> i have discussed that with chinese leaders in the past. they have given their commitment to address it and reduce overproduction. i want to say it is vital that we maintain the drive towards more open markets and free trade. trade means jobs. australia is a trading nation. our future depends on but simply selling things to 24 million australians but selling them to the whole world. year,aid at the g-20 last protectionism is not a ladder to

get you out of the low growth trap. it is a shovel to dig it deeper. that is why we are committed, australia is committed, and indeed china has committed to free trade, to opening up more markets. it has been a very important element in our successful transition from the peak of historic once-in-a-lifetime trade boom, the construction boom. that has come off. many economists said we would have a hard landing. we did not. that is in large part because of opening up those big markets in asia. haidi: it is not a one-way street. are foreign investors facing a more protectionist environment? >> there were specific circumstances. there will always be specific circumstances where foreign investment is not regarded as being in the national interest.

but generally, you would have to say there are very few countries in the world, i cannot think of any, which is not more open for foreign investment in australia. very few many -- barriers to investment in australia. there are some. as the government, we determine what is in the natural interest -- national interest. there is massive investment from all the countries mentioned and others in australia. we welcome it. we always ensure it is in our national interest. australia, more right-wing voices are getting a louder same parliament about what kind of foreign investment goes on. in terms of dealing with our own protectionism but following what we saw with the brexit vote with trump's victory, do you think we are engaging the right way? >> best because we make the case and explain that more trade

means more opportunities for australian businesses. australian businesses are the best in the world. australians are smart, creative. we want to have the biggest playing field to run onto. we don't just want to sell to 24 million australians. want to sell to the whole world. that is why we want to see more access to that. the concerning factor in terms of production -- protectionism is the way the labour party has become creasing we protectionist. this is a populist move on the labour party's part. onei: your party is the doing deals with one nation. is that dangerous? is that encouraging the rise of populist sentiment? >> it is important to understand in most parts of australia we have a compulsory preferential

voting system. you have to number a square next to the name of each candidate in the ballot paper. there will always be the allocation of preferences. just because preferences are directed to a party does not mean you support them. quite the contrary. nationalte liberal or and how we allocate the preferences on the card is a political calculation. it is always designed to maximize our vote, just as others are. haidi: want to move on to president trump. it has become a guessing game over whether the president means what he says. which haveeractions been well documented in the media -- >> well documented, whether accurate is another matter. haidi: what kind of a leader is he? clearly different temperament. there are some parallels. you both come into politics from

business. do you have similarities? do you have things in common? >> i believe that to others to judge, but we have had several conversations. they have been constructive and forthright. we have a very deep engagement with the american administration and every american administration. the australian-u.s. alliance and relationship is very deep. century of on over a fighting side-by-side in every major conflict. it is an alliance. it is an economic partnership. it is built on millions of people to people links and family links, so it is very strong and deep. haidi: how do you view him as a man? >> he is a very big personality and he has a very big job. haidi: in terms of the difficulty of decision-making, because this is a brand-new world. he does diplomacy by social media.

there's certainly an element of the unexpected. does that change the way you deal with the u.s.? >> no. we pursue our national interest methodically and consistently. we make our case very frankly and forthrightly when we are speaking to our american friends. as you would expect with good friends, we are fairly circumspect about what we say in public. it is important we give very frank advice and have frank exchanges with our american counterparts. but we don't lecture them through the media. it is very important to be able to talk frankly as good friends should. we haven the markets, been trying to work out trump the candidate versus the president. do you think he means what he says on immigration?

>> that is a judgment in about to make. assuments, people always presidents and prime ministers mean what they say naturally. in terms of a commentary on u.s. politics, i believe that to the collective talent at bloomberg. it is not my job to comment on u.s. political developments. haidi: i want to move on to china. there are three employees been held in detention. it has been four months. what are you doing about it? >> they have been provided with consular assistance. we always support australian citizens when they are in trouble overseas. that is quite a lot of people as you can imagine. there are well over one million australians overseas at any given time. there are plenty of consular cases. we support them, assist them in terms of their dealings with the

local authorities. haidi: we both know there are serious concerns about the lack theransparency with judicial system in china. are you concerned about the process? >> we respect china's judicial system and we will always seek to support australians. when you are in china, you have to obey the laws of china just as when you are in australia have to obey the australian laws. haidi: i want to talk about the budget. we have seen an incredible recovery in iron ore. how sustainable is this? you are facing tough issues getting measures into the senate. is it time to admit we cannot afford some of the tax cuts? >> we have made a number of , benefits or concessions . tax concessions, we have made

changes which have contributed to budget repair. the tax concessions are more fair and the system is more flexible and better for people on low and middle income. we will continue to make our case for the senate. i did not make a habit of predicting commodity prices when i was in business, let alone as prime minister. bloomberg is probably better able to do that. but it is obviously, the rise is welcome. we are a big exporter so we welcome a rise in price. haidi: we are seeing the borders of trade seemingly close. where does that leave australia? what does free trade look like if we continue to get the populist uprisings in europe? we have a number of european elections.

it does look like we could end up with a similar result to trump, to the brexit vote. >> we have free trade agreement with the united states which is working very well. we have entered into new free trade agreements with china, korea, japan. an enhanced our free trade agreement with singapore. we are working on free trade agreements with indonesia and india. and we are open for business. we are looking to see how we can continue with the intent of the t.p.p., even though the united states has pulled out of it. we are focused on opening more markets all the time. it is easy to get pessimistic because of a few lyrical developments. i think the trajectory in favor of treatment -- free trade will continue. regardless of what happens in other places, from our point of view it is in australia's access

to have the best interest to have access to more markets. it benefits australians being able to have cheaper goods they can buy at the shops. we benefit from free trade. on the export side and import side, it is a win-win. it has been clear for a long time. trade means jobs. we are a much more trade dependent economy than the united states, so it is critically important for us as a big trading nation, the big exporting nation, to have access to more markets. that is what we have sought to do. haidi: it is a pleasure. thanks for coming on the program. that was the australian prime minister, malcolm turnbull, joining us exclusively on bloomberg. this is a live shot of melbourne. chilly 16 degrees. markets open in just over 30 minutes. of catalysts with the

u.s. markets closed on account of presidents' day. i am haidi lun in sydney. let's get you to first word news with courtney collins in new york. courtney: singapore has announced a series of measures to help the offshore energy services and boost construction. it will bring forward nearly half $1 billion worth of infrastructure spending and extend rebates on corporate taxes. in his budget speech, the finance minister said the measures were aimed at driving growth between 2-3% over the next decade. president trump has picked a new national security advisor after michael flynn resigned. army has selected lieutenant general mcmaster. sources he met with several after hiscandidates initial choice rejected the job. the u.s. vice president has pledged a strong commitment to the e.u. on the last leg of his

european tour. speaking with the european council president in brussels, he said the trump administration would seek ways to bolster relations. trump earlier questioned the e.u.'s viability and called nato obsolete. former secretary of state madeleine albright told bloomberg he had helped reassure america's allies. >> it was an important speech in terms of reaffirming our commitment to nato. as people have come to me to talk about it, they have said good speech, let's see what the actions are. i think that is generally going to be the measure in terms of whatever statements of made -- are made, how they are reinforced. >> investors will be looking for signs the bank will follow through on plans to return more capital when it announces fourth-quarter results later today. shares have surged more than 50% since the brexit vote driven by slumping pound and stock buyback plan. investors will be watching out

for whether the bank can boost revenue faster than cost for second straight quarter. hsbc reports fourth-quarter earnings midday hong kong time. that is 11:00 p.m. monday night in new york. shortly after that, we speak exclusively with the c.e.o. the internet entrepreneur has claimed a major victory in his long-running extradition case after the high court ruled he was not guilty of copyright infringement. the court did find he was eligible for removal to the united states on the grounds of conspiracy to defraud. the u.s. is seeking to extradite him over his defunct filesharing platform. he says he will appeal the ruling. north korea has denounced the inquiry into the murder of kim jong-un's half-brother. malaysiaed -- accused

of colluding with south korea. the ambassador said local police may have fabricated suspects. his death at the airport last week raised questions about the stability of his brother's regime. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. haidi: thanks. let's get a check on how the markets are shaping up. new zealand, we are off the session lows but down by about .1%. the key weak dollar holding kiwi dollar holding steady. australian features looking flat at the moment. deutsche bank coming out with a note saying there is more upside. beyond onaying 80 and account of the shrinking deficit. look at how the yen is shaping

up. we did have a little respite when it comes to the yen. the dollar swinging between gains and losses. had for the biggest advance in two weeks. the sterling is trading higher against all the trading partners. thewas before the close wall street holiday. trading does get underway in asia. it has been quiet. we are seeing a catch up happening. >> we will see a bit of the yen weakness. japanese stocks could be higher. largely a muted start to the day. one notable thing overnight. if we can see the chart on the spreads. i think that is interesting.

le pen getting support in the latest polls. i think investors starting to get behind the idea that uncertainty may be more of a problem than we thought. haidi: earnings remain the focus in asia. we are looking ahead to see if we have a hint of their decision-making process in the february meeting. >> indeed. , we will berba looking at the language and what deutsche bank have been saying this morning. the chart shows what deutsche bank is saying. going up to the likes of $80 u.s. what is driving that is the resurgence of exports. australia now needing less capital given what has happened with the commodities rally. that appeal is still there for aussie investments from foreign investors.

the dollarpside for from deutsche bank. sayingyou have the rba you cannot argue it should be this strong. thank you for the setup for the asian open. we do have something breaking live on the strike situation. the union in chile saying the talks with ehp have failed, saying the company retains an intransigent position. that is interesting given we were looking ahead of the talks to see whether the situation could be resolved. we have earnings after the local market close. we will be speaking with the c.e.o. that is something we will be raising with him, whether the strike is going to continue playing out for the big miner.

compromise have spurred prices of the base metal -- copper prices have spurred prices of the base metal. the rally does not look like it will weaken anytime soon. dr. copper is in the house. >> we have investors calling for the return of dr. copper, nicknamed because it is seen as a global barometer of global economic health. citigroup sees the metal rallying towards $7,000. but look at the chart -- let's look at the chart. you are going to see how it has eased over a few years. citigroup does see prices topping $8,000 a time by 2020. copper has not traded above $8,000 since 2013. they also anticipate the market's swing into deficit for the first time in six years in 2017 and remain in shortage

through 2020. we have had a crunch since 2012 meaning there is a limited pipeline. i want to call up the chart that shows you how steel prices have been faring. we have surging to a three-year high as china has ordered steel mills to cut outlet ahead of the march gathering of leadership. , thechart on the terminal restrictions reported come when steel has climbed on improving demand as you can see. china has been raining in steel output over the last three years. the restrictions are expected to provide short-term support as well. this is storing a ramp-up in iron ore prices is finding support.

the market is expecting prices to pull back at some point this year, right? >> that is absolutely the case. look at this chart. we have seen iron ore surge past $90 a ton. that is the highest since 2014. we are having investors forecast prices to drop as more supply comes online. while demand is seen growing but at a slower place. one of the miners looking to bring on more supplies this year. the forecast range. we have a gradual easing toward the $50 range. there are more bearish calls for prices to drop below $50. citigroup expects a sharp correction. last week, we did have rio tinto telling us iron ore will not fall off a cliff. earlier, you spoke to the australian. prime minister. he said the rise in iron ore prices is welcome. haidi: indeed it is welcome for

the australian economy. taking a look at the commodities. finance ministers have dashed any hopes greece may have had of quickly given -- getting at hand on new aid. creditors demanding athens institute tax and pension reforms before they sign off on the agreement. the former greek finance the problem is still debt relief. get is unsustainable -- the unsustainable. it is sustainable over five years. interest rates are low on official loans. beyond that in the future, even debtu do not buy the full because i don't think anyone knows. even then, it is clear greece

needs additional debt relief. that is something the germans are not willing to accept. in principle, they have because the euro group has said they will do more on greek debt relief. it is just with the german elections coming up, they are not willing to do the additional steps necessary to specify what kind of measures, short of a haircut, because everyone understands it will not be a haircut. andnsion of maturities bigger and longer grace periods. >> the germans want to see more austerity. morelexis tsipras put austerity into the greek system straw thatbeing the breaks the camel back? would greece be prepared to take more austerity? >> the germans and the euro

group are talking about a target over the next 10 years of 3.5%. >> is that realistic? >> i don't think it is. it is doable but at a huge cost to the economy. do you give the economy room to get out of the slump which has been there for 70 euros -- seven or eight years? ford you insist -- or do you insist on a hard target? on this i think lower would be better for the economy for everyone concerned. the euro group has signed on an agreement for 3.5. the prime minister, and they do not want to change it with elections coming up. the dutch and german election. that is where we are stuck. at the same time, the germans would like the i.m.f. to stay in the program. you cannot have it both ways. you cannot have the i.m.f. in the program without accepting what they are proposing. view is theist

greeks cannot pay or will not pay with a huge amount of taxes not being paid. and this is the craw in the germans' throats. can't or won't pay. >> this is not a populist vie w. that is correct. we have lost 25% of greek gdp. we have over taxation at the moment. it is not possible to go on. this is why you do not need additional austerity in greece right now. lower makes sense. haidi: that was the former greek finance minister speaking earlier. we have more earnings dropping on the bloomberg. final dividend of 2.5%.

the company says the dividend policy remains unchanged. this is the energy giant that has extensive operations in oil and gas in new guinea. png oilrate all of the fields there. we will be getting more on that. we will be speaking with the c.e.o. later on bloomberg television. there is a feature on bloomberg we would like to bring to your attention. it is our interactive tv function. you will be able to watch us live and catch up with previous interviews and dive into any of the functions we frequently talk about. you can become part of the conversation by sending us instant messages during our shows. it is for bloomberg subscribers only. do check it out. to therom donald trump t.p.p., we get analysis of the

exclusive chat with the austrian prime minister, malcolm turnbull. this is bloomberg. ♪

haidi: i am haidi lun in sydney. you are watching daybreak: australia. the owner of burger king may be looking to buy popeyes. talks at avanced deal may be announced as early as this week. any failed to reach agreement in earlier talks but they were new the interest last week and is said to have made a mini cash offer for the $1.4 billion company. as a shareholder structure to allow for greater transparency. the brazilian miner has been controlled by an alliance of pension funds and banks for two decades. the expiration of a shareholder pact could see changes.

no single shareholder can own more than 20% -- 25% without an ipo. both countries started restricting output ahead of the agreement. 10.5a pumped almost million barrels that month, more than saudi arabia. it was the first time since march russia produced more oil. the u.s. is the third biggest followed by a rock in china -- iraq and china. let's get more analysis of of our exclusive interview with the australian prime minister. jessica is here for the details. what did you make of it? >> the prime minister was cautious but engaging. he defendedut -- australia's infrastructure spending and said australia could spend more on big infrastructure projects. at the same time, he needs to focus on bringing the budget back to surplus and reducing

government debt. finding that balance has been a tough ask for the government. haidi: we had to broach the topic of the u.s. president and how he views trump and how he has had to change the way he deals with the new administration. a lot of caution. public spatthe recently where donald trump idead australia's refugee a dumb deal. malcolm turnbull described trump as a big personality with a very big job. we cannot argue with that. haidi: clearly, his message is portrayed. more trade is good for australia. there is also this delicate balancing act he has to do with the more populist parts of government now vying for more of

a say. >> that is correct. in western australia, there is an election next month. his party is preference in some of those candidate. that means they are more likely to get elected. he is under pressure from all sides. in some ways, the government has been seen to be pandering to the far right wing sentiments like one nation. what you ares seeing around the world, this .ormalization of the new normal part of that conversation with the prime minister is what it says to chinese foreign investors. time, the prime minister has his message that australia is welcome and mean -- welcoming to foreign investment. he said that again today.

he also said the government has the right to install and police if necessary. haidi: a very nuanced point he was making. thank you, jason. next, breaking down why shareholders might be having a hard time decoding the financial numbers. this is bloomberg. ♪

haidi: i am haidi lun in sydney. you're watching daybreak: australia. they seem to have had a hard time being consistent on earning reports. if you look at it from another point of view, it was the worst result in five years. here.e david what is going on?

these things depend on the baseline you are looking at and the measure you are taking. from31% figure comes deriving a slightly unusual baseline. to compare the first quarter to the average of the previous third and fourth quarters. the fourth quarter was about the worst in five years. average that with a good third quarter and you get a very low price point and up to 31% increase. if you compare the previous first quarter, you get 8.5%. if you to 12 months, it is the worst trading 12 months in five years. there are different ways you can measure it. i would prefer if banks just gave you the numbers straight. haidi: what is the justification? is it useful? >> there is some justification. i heard that from the banks and analysts.

there different to what they were 12 months ago. it is not a like for like comparison. they have been doing a huge amount of divestments over the past 18 months. i can see the point in the short-term there might be a reason for using a slightly different baseline to get a fairer picture. but not in the long-term. haidi: you are not suggesting it is a good idea to just use this. >> there is possibly a short-term justification. nab has been doing this for six years. i think that starts to go away from giving investors a clearer picture towards something of scaring the way things are -- obscuring the way things are. they have been the best performing australian bankshares

over the past year. they still trail in terms of valuation. in terms of price-to-book values, those are the best performers. it just says what the numbers were in the latest quarter and moves on. i think that is the right way to do it. ourselves canke put a spin on these numbers. if your bank talking to shareholders, they deserve just the facts. haidi: thank you for that. that is almost it for daybreak: australia. next is daybreak: australia. what do you have for us? >> the austrian prime minister mentioned the budget. we are going to head to singapore and talk the 2017 budget. it seems like they target the critical areas in the short-term. we will get rebates as well as plans to help the struggling oil services industry and accelerate

infrastructure spending. is it enough? we'll ask those to singapore's second prime minister in the second hour. >> that is going to be interesting. usually not a lot of surprises come out of the singapore budget. there were some unexpected elements. se c.e.o. joining us from tokyo. it is interesting. some of these topical issues driving investment in japan are looking at health care. also potentially a revival of tourism and gambling stocks as well. he is saying trump is going to ,ominate the investment side essentially what we talk about every day. >> we will be asking about the

underlying business and what this means for 2017. haidi: looking forward to it. the open in sydney is coming

♪ yvonne: australia prime minister back infrastructures ending to spur plus while returning the budget to surplus. here the exclusive interview with malcolm turnbull. the profits beat estimates while oil maintained its dividend policy. fast tracksv spending and extends corporate rebates. this is debris: asia --