♪ betty: meeting at mar-a-lago. the president launched talks with the u.s. and china, meeting positive headlines. index futures suggest a stronger open in the asia-pacific. betty: a difference of opinion. saying jamie dimon is demonstrably wrong. dimon is rightys on point. there are problems in the u.s.

economy and growth is slowing. we have world coverage on daybreak asia. be joined by big-name guests at the finance ministers meeting. we will also be live in hong kong, and beijing. betty: president trump is meeting president xi jinping right now in the u.s. we will be live there and in new york for all the reaction. this is daybreak asia live from bloomberg's u.s. and asian headquarters, i am betty liu in new york where it is just after 7:00 p.m. >> it is just after 7:00 a.m. here in hong kong. man. man -- yvonne one wants to make america great again and one has a chinese dream. betty: they both want to make their countries great again. a big fight between these two

coup leaders, the most important leaders for the global economy in the world. certainly a lot on the plate here. you can see that tension in the u.s. where investors were nervous. butid and mostly higher they're also nervous about the jobs report tomorrow and what those numbers will mean for the fed. we did not give you much of a lead in going into asia. yvonne: that adp report set the bar high. we will see how it plays out later on friday. some caution here one hour into the session and new zealand. the index down one third of 1%. we are hovering around the six-month highs, the kiwi dollar at 69 u.s. cents. there were comments on housing and labor markets, .7541 four the aussie. -- we'ree dollar-yen

missing one line. we see the dollar recover over 5, closer to that 111 level. futures trading now, looks like a pretty good open in tokyo this morning. our top story, president trump at a high-stakes summit with china's xi jinping at his mar-a-lago report in florida. the threat of north korea's missiles and tensions over trade hangover the meeting between the leaders of the two largest economies. joining us from palm beach is ramy inocencio. tell us what is happening now in the mood you are feeling this morning. beach.o from palm it is interesting to be a fly on the wall. the presidents and their entourages sat down to dinner.

it started 30 minutes ago. when it comes down to the substantive part, today is hello, tomorrow will be the big content, they will talk about jobs. donald trump has said china has a stolen u.s. jobs over the past few decades and he once to -- wants to right that. i want to dive into the bloomberg terminal. on the right side of your screen you can see the blue line chart u.n. has been range bound since the start of this year, trading 6.8, 6.9. the forex reserves falling to $3 trillion or so. you can see they are trying to prop up the yuan. take a listen. >> for the last year, china has been trying to prevent the

devaluation, to support the renminbi. it makes it difficult to look at the current situation and reach a conclusion that there is currency manipulation. clearly, there is a transition underway from a -- to a more market-oriented exchange rates. are in thentions opposite direction from what you look at, in terms of measuring manipulation. he, currencyal manipulation is not on the menu today. one other thing likely on the menu is the u.s. trade deficit with china. let's go into another bloomberg terminal chart. you can see on the right side of atr screen it ends in 2016 $347 billion. roughly half of the u.s.'s total

global deficit. that is something donald trump will be talking about with xi jinping. major content talks tomorrow. betty: the deficit situation between the u.s. and china, a very tense situation we have been hearing about for the past several days with north korea. what should be expect between the two coup leaders -- two leaders? ramy: analysts say we should not expect anything substantive from this meeting. it is the first time the two leaders are meeting face-to-face. but the ramifications are huge donald trump has been pushing china in some way to make north korea resolve it situation. check out this function. korea's biggest trade

partner is, guess who? it is china, at about $6 billion. if china pulls out, what does that mean? it could mean a north korean explosion. also, refugees going between the impact, and economic war, and 25 million south koreans on the border. a lot of these issues here, donald trump said that trade in north korea will be at the top of his agenda. , ramy thank you so much inocencio in palm beach. let's get to the first word news with nina melendez. --indian bonds fell after it it kept the benchmark unchanged.

this is the latest surprise from governor patel. aftersed the reverse rate shifting its monetary stance in february from a quantum -- from accommodative to neutral. a prominent wall street figure has raised a flag over the state of new york economy. he says growth is flowing on concern that president trump's agenda may face obstacles in congress. he says that the u.s. may be the slowest growing nation among g7 countries in the first quarter. jamie dimon said u.s. is exceptional, but something is also very wrong. dimon's claims are false. he said at the problem has been solved and that in crisis, bondholders would take losses rather than taxpayers. kashkari he says it sounds ideal

but is unrealistic and rarely works in real life. but he did agree to call for less complex regulations. toshiba has an improved bid from its chip business. near ¥3ys it is trillion. they need to recover from their accounting scandal and westinghouse. they have received no bids from japan. global news 24 hours a day, powered by 2600 journalists and analysts in over 120 countries. am nina melendez, this is bloomberg. betty: stocks are advancing ahead of friday's jobs. that nervousness did not push the indexes that far. is tatiana with more on what happened in wall street. >> we have seen caution in the

markets at the end of the trading day. gainingwe saw stocks and rebounding from the drop yesterday. now as you said everyone is watching the meeting with president xi jinping and the jobless payroll report tomorrow. if you dive into the bloomberg and looks at the performance and s&p 500, we are seeing energy and financials leading gains today. energy stocks benefiting from that increase in oil prices we have seen today. it was interesting to see financials gaining today, given what we have heard from gary cohn, that he would support bringing back the glass-steagall act. betty: when he said that, financials actually rose, is that right? >> yes, very surprising. you think it would drop on a comment like that, especially from the banking executive.

analysts say they do not think it will happen, and that republicans have higher priorities right now and they certainly want to ease regulation and not make it stricter or completely change the way banks work today. yvonne: there is also a lot about health care. the gop proposed tweaks to their legislation. how did the market react? >> we have seen republicans adopting that today. if we look at the market reaction, there has not been a big move. hospitals would be the first place to watch. it hasook at biotech, outperformed the broader market this year. hisident trump focusing agenda on the obamacare repeal and now trying to focus on tax reform. yvonne: thank you, joining us live from new york.

record earnings made samsung first quarter profits. we are expecting those numbers any minute now. betty: leaders of the economic heavyweights in florida. we talked to a former u.s. ambassador. watch out for the unexpected. this is bloomberg. ♪ yvonne: this is daybreak asia, i

man in hong kong. betty: i am betty liu in new york. in florida. meeting our next guest says it is unrealistic that they will resolve critical issues at this summit. he is the former u.s. ambassador to the asian bank under president bush and obama.

and our china correspondent tom mackenzie joining us from beijing. curtis, let's start with you. you did say to expected the might we expect to this even though these are scripted affairs? >> indeed. i think we have seen already this is a u.s. president that is doing things unlike any other president so far. we have two coup leaders with contrasting leadership styles. xi jinping, truly scripted. president trump, unpredictability. but back at work to his advantage. it is a chance for both leaders to set the agenda for the next four years. at this stage it is not about the tweet a bold deliverables. it is about setting the stage for what they will focus on in the weeks, months, years ahead. yvonne: you do not think there

will be concessions here? they mentioned a gift basket of tweet a bold deliverables, you do not think that will happen? no clues on what will happen with trade? i think each side is now playing to domestic audience. each side wants to be seen as very strong. how do they work that relationship in a way where they know the world is watching, but when the u.s. and chinese domestic audience -- they are worried about different things. the u.s. under this u.s. president focused on jobs, a stronger that hopefully more beneficial relationship between the u.s. and china that many think has not been there the last 16 years. tom: i know you do not think there will be conflict resolves but i want to draw on your experience from the development bank.

there has been suggestions that president xi could offer help with infrastructure spending in the u.s., possibly via the chinese infrastructure investment bank. how realistic is that as an option for the chinese? having done so much business from my site on china, we have to differentiate between the grand announced and and promises. we may well see those out of this summit. and the reality on the ground later. but onesee memorandums, or two years later, what has happened? there will be things both sides want to focus on. but the details will have to be thought out. each side wants us to go well. in some ways, trump is already a winner in that it is xi jinping traveling to the u.s. for a day to florida on president trump's

territory, and flying right back out of the country. trump is already the winner. but they will lower people ares, given not fully in place in this new administration in washington. betty: i am so glad you mentioned that. i thought it was interesting myself. xilerson greeting president first, versus trump coming in secondly. asserting himself more coming in separately and making him wait to meet him. these ceremonies and symbols, but i want to this is notiewers, the first time that two leaders have met amid tensions and

awkwardness. if you think back to when george w. bush greeted the president and washington, let's show some of these pictures. it was notably one of the most awkward encounters. you see president bush manhandling him during this photo op. it was a time when there was a protester almost for a minute or so shouting at the chinese president. as a scripted as they try to make them, they often are not. i am curious, how nervous of the chinese that something like this is going to happen? but something somewhere is going to make their side look bad? we spoke to people here leading up to this event, the

chinese involved in this meeting. we got the impression there was a division among president xi's advisers over whether this was a good idea because of these potential gaffes and missteps. they have gone through every minute of the schedule for the time he will be spending with president trump to try and control it is much as possible. itwe've been talking about, is difficult to control when you're talking about president trump and the potential for a tweet or race range handshake or something of that nature. that is a concern for them. hu was more -- stiff than president xi. is coming into this a stronger president. hopefully it will not be a trump and more gold situation with no handshake.

the timing of all this in the meeting is crucial for president xi jinping. it is an important political year, ahead of the 19th people's congress. xi bring-- what will back to china to defend national interests? he is facing trade hawks and those wilbur rosses of the administration. two most important leaders in the world coming together to talk as equals is a powerful image already. it comes quite early in a new u.s. administration. in the past, chinese and u.s. leaders have met early, but on the sidelines of an -- a different summit. the timing you mentioned makes sense.

you get toand closer these key party congresses and other meetings in china, the focus will have to shift to much more domestic, what is happening in the economy in china. it works out terrific for both of them. expectations are lowered at this stage. across the board, people are seeing it is about agenda setting. when you talk about trade and economics, clearly the chinese would like to focus more on that than the south china sea issues in asia. betty: what happens after this? these 24 hours, they are meeting in mar-a-lago, which in a way lowered the importance of the meeting. it would be different at the white house, more formal. is in a president trump's turned to go to china? it is no less important

because it is in it is no less t because it is in florida. [no audio] you do not think there is symbolism with the meat myanmar lago as opposed to the white house? curtis: there is symbolism. we are on president trump's territory. it is not a state visit with all the pomp and circumstance of the white house. it lowers the expectations. this week in washington we are are you seeing movement on president trump's nominee to the supreme court, a critical week for the president. this is one of the big stories donald trump is leading on. in office 75y been days and look what this president is doing. i hope hopeful for the u.s.-china relationship and this is an important first step. will china be declared a currency manipulator? there is a deadline coming up.

had tont trump has moderate somewhat from the issues he raised on the campaign trail, where he was going to label china a currency manipulator on day one, that it was a possibility of a 45% tariffs on chinese products. that will not happen anytime soon and that is better for the relationship as the relationship matures and they get a better sense of each other. that is why this meeting is so important. tom: given what you just said about the one china policy, if we assume the meeting goes well and we get assurances from trump to the chinese side and vice versa, how much faith can the chinese put into any assurances they get from trump, given he doesn't u-turns on things like -- does u-turns. we have the latest on syria and russia, potentially changing alliances there.

how can they take any assurances from the white house, given president trump appears to be fairly happy to flip-flop? i differ with your question. i would ask the same question to the chinese. the chinese have raised issues and what they think are solutions, but still they continue to act as they did in the past. the south china sea is a key point. i remember going back to president reagan and his quote about trust. each side says, but you look at what they do. from the chinese side they will evolving tradee policy and economic policy. from the u.s. side they will look at the other key issue, which is north korea. the chinese in the past said they would make efforts with

other key friend and partner, north korea, to moderate that nation's behavior. that has not happened. how can the united states trust with the chinese are saying? this goes back to the importance of this meeting. each side will get a sense of the other side. a critical question after these summits, what happens on the ground. let's focus what is happening on the ground. statement,heard that read that statement from rex tillerson that after the ballistic missile was launched, it was a very odd statement. we know this happened in the u.s. has said enough on it and we have nothing more to say. people looked at that statement and said, what does it mean? do they not know what they are going to say? did they say enough? what did that statement mean? it is such a short

statement, we have said enough about north korea, we're not going to say anymore. i almost want to follow it up with, what are the chinese saying about north korea? another important meeting happened this week in washington. singapore's defense minister met with u.s. secretary of defense mattis. is the secretary mattis secretary of reassurance. this is what this summit is about in florida. each side is trying to reassure the world that this relationship will continue. naturally there will be ups and downs. but my hope is that there will be progress, whether it is north korea or trade and economic issues. ultimately, all these issues are linked. you cannot separate defense and economic issues, particularly in

the u.s.-china relationship. we do so much trade in that south china sea. yvonne: we will ended on that optimistic note. thank you for joining us. ♪ yvonne: it is a happy friday

outside hong kong, 7:30 a.m., 30 minutes away from asia's first major market open. betty: it is a happy, clear friday. not so much here in new york, very dreary and rainy. yvonne: lots of clouds. betty: it is good -- clearing up. a littlenot so clear, muddy. s&p closing 2/10 of 1%. i am betty liu in new york. yvonne: i am yvonne man in hong kong. start with the leaders of

the world two biggest economies meeting in florida. the economy and the threat of north korea on the agenda. allowingt mar-a-lago, a more relaxed atmosphere. warned the meeting would be very difficult. the u.s. has signaled it may take military action on syria after president trump said the gas attack crossed a redline. the pentagon is actively developing options including cruse missiles, to target forces loyal to president assad. rex tillerson described tuesday's attack is a serious matter that requires a serious response. top finance officials say trying to curb volatility in the ringgit are sufficient, and it should strengthen the currency.

they pulled almost a billion dollars in four months through february. the second finance minister says the malaysia will not engage in currency controls. not where theyre were today, if our gdp continues growth, i can see it moving up. >> the king of thailand has approved a new military constitution, paving the way for a return to democracy. it includes an appointed senate to overlook governments and it sinceir 28th constitution the monarchy was abolished. but the promise has already been pushed back. global news 24 hours a day, powered by 2600 journalists and analysts in over 120 countries. betty: we have breaking news on

a preliminary profit for samsung, 9.9 trillion yuan. >> this is a beat for samsung electronics. despite the fiascoes in the trillion won. 9.9 we were expecting 9.8 trillion won, so a sizable beat. revenue coming in at 50 trillion won in sales. we were expecting 49.5. fiascoes,to those preorders are taken in south korea for the s8 smartphone. that should help balance and fiasco, thosete 7 phones that caught fire. that really hammered samsung electronics, knocked it down a notch in the global rating for

smartphone sales, losing the lead in the first quarter to apple. and the vice chairman jay y. lee appearing in court later today in his trial. ongoing,h hearing is as he has been charged with bribery, embezzlement, and hiding assets over's these. those crises and the day-to-day performance of samsung perform -- electronics, they are performing well in energy chips and displays that are exporting out of south korea in record numbers in the first quarter. there are two sides of the story. better than expected, 9.9 trillion won, higher than the 9.8 trillion won expected. the stock is surging at a record high. up 60% in the last 12

months. quite incredible. counting down to major market opens an asian-pacific. let's get to our bloomberg market reporter live from sydney. i know we will take a look at samsung when the market opens in korea. bloody looking out for in australia? -- what are you looking out for in australia? >> it has been a very tough week. strongstill in a very quarterly performance. we do like to note the drives theabout what aussie, whether it is the iron ore price or local fundamentals like of the housing market. but at the moment we are at key levels. the ore came up 50% from february peak.

those very aggressive comments from the governor happened tuesday night. we are looking for more of that to wash out. technicals looking wobbly here. markets-wise, the local markets in australia should take up nicely. we are seeing the initial worry fade from the fed meeting minutes we saw yesterday, where asian markets were hit hard. what about the end of the week and how it has been shaping up elsewhere in asia? any big trends to take away so far? i think the samsung numbers will be interesting, we will keep a close eye on those. asian equities is

to reverse those losses we saw thursday, or at least recouping some of those. some of the declines were aggressive in japan. we have been watching the japanese banks particularly, they have been selling off fairly aggressively since mid-march with of the hike, those worries of reflation trade coming up a bit. japanese banks have been a big example of how that is rushing out through the market. hopefully today we get a little more of the reversal there and we get some buying. let's see how that works in japanese banks. equities it should be in the green across the region. the big buildup today is still into the u.s. jobs report. traders will not want to take a big position either way on that. betty: thank you so much, adam hage. something we have been watching as the reserve bank of india with that other surprise, that moved to ward off the inflation

threat that they say does not exist. hawk to raiseme a rates. on what hays with more is behind this. kathleen: india is a pretty important economy to investors. is moree minister confident he will be able to put through measures that boost the economy more. if the central bank is doing it it is being close -- closely watch. they raised, but the other to 6%. over the last couple years some the r.b.i. was cutting rates. holds them steady now since 2016. all of a is this jump in the rate that the banks are in if a deposit cash at the r.b.i.

that is one of the reasons they cited for this move. they want a system awash with cash after monetization last year. they want to entice money to the banks. but the r.b.i. also talked about inflation. they feel it will be rising in services. here is what they said in their statement. expect inflation to top the 4% target, 5% in the second half. growth of value added, a key component of gdp is posted at 7.4%, it was 6.7% last year. they talked about various tools to mop up this excess liquidity. as for the result, it was a 6.5%. last talked about february.

it was not so blatant, but it caught attention. boy, did this catch the markets attention. the 10-year note, their benchmark spiked 12 basis points, the biggest one-day move since that february 8 movement. movedpee already strong, into its highest level against the u.s. dollar in 20 months. definitely a market response, something that created waves. yvonne: we saw a pickup in terms of inflation, 3.65%. is it still a big problem? 3.65% in apparently march, still below target, does not seem like a big red flag. with of the output gap that could cause more inflation. food prices could rise especially when the monsoon season plays out.

bloomberg intelligence says this is not what is going to happen. inflation will undershoot what the r.b.i. is looking for. let's look at a chart that shows you the court cpi in india and what bloomberg intelligence season doing in the future. you will see a white line, and orange line. the orange line is the official measure. you can see how it has been trending up the past few months. that is core measure trending down. get out into 2017 and ahead, that is the white line. whatever measure you are looking in line whereing, the r.b.i. would like to see it. they are forecasting cuts by the end of next year. if this plays out, this is where it will go. interesting times for india. yvonne: thank you. a big day for samsung.

the earnings, the top and bottom line. we talked our next guest about that. jay y. lee due in court. ♪ yvonne: this is daybreak asia, i

am yvonne man in hong kong. betty: i am betty liu in new york. the world's biggest mutual fund set another record, nearing $121 billion in the first quarter. from a year 64% earlier. vanguard and lack rock emerging. investors flee from actively managed funds to low-cost mutual funds that track indexes. hasne: uber rival lyft

raised $500 million in a new funding round. that values the company at $7.5 million. it could expand further. lyft is locked in a struggle with uber across the u.s. to unroll its service in a dozen cities and capitalize on the bad publicity surrounding its rival. betty: spotify a considering listing shares without new money. they have 50 million paying subscribers this year. they do not feel the need to get new capital. they want to let employees and new investors cash out to address the problem. spotify raised $1 billion in debt when the revenue topped $2 billion. samsung electronics posted higher than projected profit on strong sales of memory chips and displays. its first-quarter operating profit came in at 9.9 trillion won.

we have a research analyst to talk more about this. really great to have you. they set the bar high for the first quarter. it seems like they delivered, thanks to a boom in memory chips. how sustainable is this growth? the sector is quite volatile and is able. is this as good as it gets for samsung? >> in some regards, this is a great peak for them in this business. over the course of 2017, we will see continued demand for these products and memory chips and other parts of their components business such as the display. strong position as a vendor of these components. as other flagship and premium smartphone vendors continue to put out strong products, they will continue to see their -- they are set up for

a pretty positive 2017 overall. note 7 fallout, they have had the ability to compensate with other parts of the business. there was a political scandal and the note 7 debacle. in terms of the smartphone business, samsung is still trying to catch up to apple. i want to throw up this chart, a feature on the bloomberg. it highlights the market firstnt we have seen smartphones. the blue bar is samsung. red is apple. the green is apple, i should say. in terms of shipments, you say

apple may not be samsung's main threat. you say it is the medium and low segments. why is samsung not deployed enough it resources? it is i think part of that samsung and a lot of the premium vendors tend to tailor their marketing and resources around the flagship lunches. the s8 has gotten a lot of their resources and attention this year. samsungve seen, historically had a strong position in southeast asia, india, even in china. these are key growth markets where future battles will happen. chinesesee is vendors, vendors that build up a strong brand at home and are expanding abroad are being aggressive in terms of what they do with their

marketing expenditure. the margins they offer to their partners and even the branding. samsung has taken this market for granted a little bit and devoted more attention to the flagship of battle. what we expect to see over the course of this year, which is a continuing trend from last year, their position is being chipped away at and they are not necessarily number one in all of them anymore. we could see them lose this top spot in asia for the course of 2017 unless that mid range gets focused on again. it sounds like something they should pay attention to. despite all the problems, you mentioned it earlier, they had exploding phones and their vice chairman is jailed. i want to show you this chart about how resilient it looks.

this shows you the implied price appreciation samsung shares based on target prices from various analysts. it shows you the implied price appreciation is still around 19%. that is lower than what it was in the latter half of last year. but not bad for all the troubles this company has gone through. why is this? the brand is strong, and able to fend off a lot of these issues within individual business units because it has such a diversified product range. it offers not only in terms of resource -- smartphones for consumers, but within the industry itself it supplies so many important things. it has a pioneering aspect to it.

if you look at the samsung display, they set the trend for phones and other consumer electronics. the politicalme, scandal going on with the vice president, that is self-contained within south korea, not affecting the global brand. they are very popular in korea and have a very strong home a market brand. that might have some implications for shuffling within the company but the brand will not be affected much. yvonne: given this political scandal and the note 7 debacle, what is this mean for samsung's restructuring plan? they have listed one of its units, are those plans delayed indefinitely now? i think that would be the expectation.

that is probably the main issue they will face, is that internal reorganization or plans for reshuffling things will be put on hold. it is unclear when exactly those will come to fruition. but we do expect that friction to be present this year. comee: great to have you joining us live from singapore. we take a look at possible pitfalls facing asian nations putting together a post tpp trade deal. ♪ betty: this is daybreak asia, i

am betty liu in new york. yvonne: and i am yvonne man in hong kong. nations, and a smaller agreement being negotiated to provide cautionary lessons. joining us now is bloomberg news

reporter. great to see you. we are talking about the pacific agreement on closer economic bit more, give us a background on the negotiations and why they are important. is an aid toplus trade pact between australia, new zealand, and the rest of the pacific. it is a different type of deal to what australia and new zealand are doing. it is to solidify their trade in that area and give the region much needed development funds. for 0.05% ofounts trade. but others are looking to do more business in the area. betty: what would delay pacer plus? what australia and new zealand have delayed the deal? be signed into

may. this is after they pushed for more leeway to get more production to their textile industries. there was a lot of bickering happening between the regions. what that has done, it made australia and new zealand come in and say we need to settle this down. let's try to get a deal done. betty: what lessons would you draw from this to bring into other regional negotiations? we never did count of the little guy, there is no doubt about that. australia and new zealand really wanted to get this done so they can get a first mover advantage before the e.u. gets a deal with of the region. they are in negotiations at the

moment. the timeframe on that is not sure. the pacific pushed back against australia and new zealand and that is what they need to look at. with china trying to progress the deal even faster than what would normally happen, and india dragging their heels, it could be a lower quality deal. and that is something the smaller countries do not want. betty: thank you so much. asia'smore to come with first major market open moments away. yvonne: let's bring in sophie kinsella's what we should be watching at the open and australia, tokyo, and korea. , theep an eye on 7 & i response to the latest earnings report. we do have reports regarding the size of the exports chip unit. and commodity prices in sydney.

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>> the meeting of mar-a-lago, the president wants to meet -- two meetings with both sides. will be watching the stocks in florida. many countries may be on the menu. be estimates in the first quarter. earnings not affected by the note seven. this is the second hour of daybreak asia coming to you loud -- live. i'm yvonne in hong kong where it

is just after 8 a.m. the delegations of both sides are kicking off with the dinner right now. this will be a nice to meet you kind of thing bringing personal the nicetiesween in china. we are seeing a bit of caution as we wrap up the trading week. let's look at how things are looking. >> as investors wonder, not too much, if trump is invoked -- is enjoying a dinner conversation, currency is on the menu. we notice caution here with recent marks from trump around syria. and the general reach here is that the u.s. china summit on cap major market implications. we are looking at a mixed bag so far. of afterhe 225

falling. this benchmark has been at -- has fallen below since december. we do have the cost adding about 10% staffing a 3-d -- stopping a three-day drop. stocksave aussie marginally higher after thursday. coat and cool prices breaking $200. a metric ton, iron ore falling to the $50 a metric on range. we do have southeast asian currencies falling the bought as well as this one. take a look at the yen. 90 there. we do have the on the following year. iron ore prices on the currency. let's take a look at the commodities space here. we do have bold holding above 1250 an ounce.

-- $12.50 an ounce very oil is trading at a one-month high. it is helping to boost energy shares on wall street. we will see that continues. for the or something energy market, trump is said to be putting an executive order to expand offshore drool -- drilling. i want to show you this chart which is g #btv 7557. the is seen as a measure of risk appetite because it's a frequent carry trade. on this chart, you can see the one-month risk reversal is picking up. it is protected against a drop and that is driving -- drop -- rising. that is the lowest since november. >> let's get to the first word

news -- first word news with tom mackenzie. >> indian bombs fell after that ibi. they were keeping the benchmark on the change. this is the latest surprised from the governor patel. persuasion persists. raised to 6% after shifting its monetary stocks from but -- monetary stocks in february. trump is saying is not manipulating and there is no evidence to suggest such a thing. responded tornor investigation of talent or possible trade abuse. said it is strengthening against the dollar this year. not trying to keep the currency week. at times we might have to

reenter the following exchange market. that is intense capital inflow on the receiving end. the king of thailand has approved a new military backed constitution waiving the way for a return for democracy. document includes an appointed 20thland'sits constitution. another prominent wall street figure has raised a red light over the state of the u.s. economy. the blackrock ceo says it is slowing on concern that president trump's agenda may face obstacles in congress. he said the u.s. may be the slowest growing economy among g7 nations in the first quarter. jamie dimon said america's exceptional, but warned there is

something very wrong. global news, 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. i am tom mackenzie, this is bloomberg. here,are seeing pressure down by 9/10 of 1%. if we take a look at the earnings front, it seems we have shrugged off the scandals over corporate corruption. we just broke those numbers for us. it seems like this fiasco, you talked about the jailing of it, is -- what is comprising of about 20% of the south korean gdp, half of the cost of the index, this is a big conglomerate. that's part of the reason it has given that's gotten into trouble. are 9.9iminary numbers

trillion one in the first quarter. that beat expectations. about, $500y million in profit in the first quarter. sales are also 50 trillion juan in the first quarter. we talking about this resiliency. i want to go to the bloomberg terminal bring up 7581. you can see the scandals with the note 7, caught fire and exploded in some cases. they had to almost do an immediate recall of the product. that is when the crisis began. you so the media stock a dip. then, the next crisis or punched head, thee, to the vice-chairman that was supposed to take over is in jail. he is going to appear in court again today as that trial

proceeds, and look with the stock has done. it has gone to near a record high. profit in the first quarter is the highest first-quarter profit they have ever posted. let's talk about the scandal. we understand that he is going to appear in court later on today. where are we in this scandal? we are taking live pictures from outside the courthouse. >> this is going to be the fourth hearing after the formal indictments. he is going to appear in court today as mandated by law. the previous hearings, he did not appear in court. it will be there again. he is facing the charges of , hiding embezzlement assets overseas. he has denied the allegations but this is still going to trial. prosecutors have not laid all this out.

i'm sure much will come out behind the closed doors of court. >> we've also been talking about the f eight of analysis as well. >> it's critical to get them back on track. build the image backup. especially when you have those chinese players like ipo and --awpo and another. samsung, because of the crisis, slipped behind apple for the global lead. if they want to regain that, they need a real home run. , curvedl be a caller screen, recognition, and bigsby is coming out. a lot of writing is coming out. >> let's see if it lives up to the hype. they do.

we will hear from the financial leadership of the philippines in about half an hour. we will join the central bank governor, but first, it is a philippine finance secretary live with us next. this is bloomberg. ♪

scarlet: this is daybreak asia. that's not >> -- received a bid for its chip business. the offers near ¥3 trillion. that is about 27 billion dollars. it has received no bids from japan and is unwilling to see the units bought by china or korea. 7-eleven's parent is rating its presence in the u.s.. ofs a $3.3 billion purchase gasoline retailers. the deal involves more than 1100

outlets and convenience stores in texas and across the eastern states. they are beefing up operations in america while getting back and business and dish -- japan. the taking of 473-7800 planes to cover flights to smaller cities inside japan. and rj is already two years late. they are not expected to reach customers anytime soon. they have suffered a range of trouble. governors have gathered as the region faces a new wave of protectionism. asia get to our southeast representative. how has the philippines played region?

versus to boost infrastructure. the question really is, funding. with a ballooning budget deficits, where with the money come from? let's get perspective. he joins us this morning. secretary, good to have you with us. you have said before that the and to to raise revenue clamp down on the biggest tax invaders. -- emailers. thank you for having me worried calculates,resident we came up with an economic program. >> among the key features of the thinking towere continue the same policies of previous administrations.

heavily analyze the philippines as having a serious disparities.income we decided that the best way to conquer -- correct to that go into bigs to infrastructure programs, which we really need, outside of the area. we have embarked upon it. we have approved 20 major projects. the question came through now, funding. have a sustainable program for funding this large infrastructure program, we decided to go into a very comprehensive tax reform program. it has not been done since 1997. in program is very ambitious

that, the first part, we want to lower the income tax rates because they are higher than our neighbors, so we want to bring down our personal income tax from 32% down to 25%. second, we want to increase the deductions that to the population will have. on the other hand, we will increase taxes on fuel, and automobiles. these taxes have not been since 1997. i said, >> when it comes to tax invaders, how do you plan to do that? indonesia just concluded its tax -- tax amnesty program generating billions in additional revenue. is that part of your strategy? >> the first part of our

strategy there is to show the population we will go after the tax evaders. we have gone into a very extensive program, in fact, we have already filed the case of probably the largest tax case filed in recent years of 10 again -- against what we consider to be a very large group of tax invaders. foriled the first lawsuit roughly $200 million. we will file more cases against him because we have more morence that's there are cigarettes that are untaxed. we will also go after the big ticket items in the power area. wouldn't you go after moneys stashed elsewhere like indonesia did? >> as the second step.

we will most likely come out with a similar tax amnesty program, what the tax amnesty will not work if they don't believe you can go after them. them, we have to go after show that this government of has thesiness and stop tax will to evasion. then we will design the tax amnesty similar to the one that he has advised. >> your tax reform package, will that be england minted -- will that be implemented by this year? >> yes. june, thehortly after legislature will pass the first package that we have. that is relating to personal taxes andes and fuel automobile taxes.

the second attacks package which we will submit by october, will be the tax package where we will rates from 30% down to 25%. that will be more in line with asia. at the same time, we will repeal all the the duction's where providing. the mining area and the country has somewhat impacted it. the group -- the closure of the minds, can we expect a resolution soon? >> yes, in fact, as cochairman of the mining industry coordinating committee, i have instituted a program where we the stakeholders in the mining industry that due process will be certainly done inthe -- strictly

our review of the minds. in the philippines, the minds and the government come into a partnership actually. it is not a concession, more of a partnership. a sharing of revenues. in a partnership you anticipate that some things might go wrong, and we have a very strict procedure. -- penaltiesalty the are proportionate to violations if there are any. we are going to have them strictly enforced. but we will give everybody a chance, ask the required things in our contracts. >> how much is it take for the philippines? it needs a lot of revenue. the taxes we collect from

mining are in the area of about 35 billion a year. concern. a bigger concern for us is the local taxes collected by the local governments. areas, they account for 18% to 90% -- 80% to 90%. we are concerned if the local communities lose that the large proportion of their team,, development in their area services provided to the services, areh going to be seriously impacted. it is people that we are concerned about. >> are, thank you for your insides -- insights today. we're coming to you live from the finance meeting here.

>> will come back to later. we will have plenty more later on in the show. we're going to hear from indonesia's finance manager and shortly after that, we will speak to the man who runs banktial -- runs a central here. stay tuned for that. coming up next, will president trump take his chance on confronting on jobs and north korea. the latest on the mar-a-lago meeting. this is bloomberg. ♪

theresident trump and chinese president are having dinner at the mar-a-lago right now as they kick off a high-stakes summit. one of the first big challenges of trump presidency. we heard from the president, take a listen. >> it is an honor to have you in

the united states. we have had a long discussion notady and, so far, i have -- got to nothing. absolutely nothing. but we have developed a friendship, i can see that. i think, long-term, we are going to have a very good relationship. i look forward to it. with bring in our reporter live. we just saw a video there, trump mentioned this was a friendly exchange with a handshake before they started dinner. they're kicking things off in a cordial manner. >> yeah, seemingly so varied we were just talking about it talking about how they are friends. hours, this is the first time they have met face to face. this is the optics, hallows. i want to talk to peter martin.

about what the content of the substance will be tomorrow. what are the main topics focused on? >> i think we are too big areas. , that is where the chinese have the most give-and-take that they can do, and maybe some investment numbers in terms of investments in the united states. .aybe concerns on tariffs also, agriculture. trade, i think we are looking at north korea is the top security issue. >> donald trump said both of those with the top two things here. what you think we could see off north korea? once the stability on the korean peninsula more than anything. i think we may see some superficial strength of the factions or minor steps toward punishing korea -- north korea

for its actions. the chinese don't feel like they have the room to do that. in terms of what the chinese would walk away with, what would be considered a win? trump has been such an unknown entity to the chinese that, right now, they need a stable working relationship. china is the equivalent of an electric near -- an electric year -- an election year. want tensions with the u.s. to distract from their politics. if they can walk away with someone -- a feeling that says trumpism of they could do business with, that is a good start. >> it's going to be interesting to see what happens up to the hellos today. -- when we wake up tomorrow morning, that is when the hearts of begins. >> thank you. joining us live from boulder beach.

this is bloomberg. ♪

>> where does happen our way from the open as we wrap up the trading week this morning. i'm yvonne in hong kong. now with the first word news with tom mackenzie. top stories this hour, samsung has shrugged off scandals over safety and corruption. they reported higher than expected profit and revenue. it was $8.74 billion. rising demand for memory chips and oled screens helps fuel the rise in sales. the galaxy s eight may begin today.

leaders of the world's two biggest economies, are meeting in florida with trade and currency and the threat of north korea on the agenda. their meeting president trump at that-lago in palm beach allows a more relaxed atmosphere. he has frequently complained about lopsided trade deals with the --nd one of the trip the meeting will be very difficult. neil gorsuch, raising fears of permanent government gridlock. a filibuster rule to allow the simple majority to approve the nomination is dashing any hopes of renewing bipartisanship on capitol hill. john mccain voted for the move but said republicans will regret it. . the trump administration has crackdown on work visas and that could create a national security risk. to get thector needs

best sound to protect against cyber criminals. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> but see how the asian markets are shaping up as far this morning. we are seeing caution this morning leading up to this mar-a-lago meeting. so far, we're seeing quite things for equity. saw japanese stocks, let me focus on this for a second. we're seeing technical signs that the kleins may persist. chart, we can see that a three-month trading range and the benchmark is just outside of that zone today.

the red circle on the chartier. take a look at the index today, we have seven holding up at about 4.4%. that was after a $3.3 billion deal. toshiba on the right over 4%. thatis after news reports ¥3 trillion is being offered for the business. as we go to the thai one upping, i want to look at the taiwanese dollar. it has passed 30 per dollar by the end of june. we're waiting for inflows into taiwanese stocks. this is the red circle on the chartier. the currency did fall by the most in a month. is that it could weaken to 31.20. by the end of september. i want to show you this as well.

this has jumped to the highest in more than two weeks ahead of the meeting. we're sitting next seeing pressure here as well. take a look at the one-month risk reversal. they're spinning losses for a fifth day here. the risk reversal is picking up across here indicating more weakness --you one one weakness -- juan weakness. beenymakers, have not given -- yvonne. >> sophie, thank you. let's head back to the meeting in cebu. bankers in july. , he's got somer

big shoes to fill. >> while yes, we have seen inflation rising but, the governor says no need to worry. it is all within the target inflation rate. , governor good to have you now. no risk of runaway inflation? >> currently our forecast for this year and next year show us that the average inflation for this two years could be within the target range. for 2017, the forecast stands at 3.4%. that it willation start to go down in the fourth 2018, where projected at 3%. middle ofght in the the 2% to 4% range. volatility in commodity prices particularly, in the case of

oil, you see something amazing. because of the increase supply of oil globally, the expectation that the oil price will continue to go up or say above 50 has changed. that would tend to lower the inflation, but that can also reverse in the months to come. we need to monitor it very closely. >> one of the issues investors are interested in was the philippine peso. it is simply because of political noise or more than that? >> the behavior of the peso has been affected by a number of things. reasonone would be the demand for foreign exchange. there is a greater need for dollars to buy capital goods,

raw materials, and other imports in the infrastructure program as well as the private investment program. that is one. the other is, because of the environment, exports have not done quite well. on the other hand, remittance , it is upll go up higher than expected. this will also continue to increase. are increases in the month as was applied -- demand is was apply. precisely because of what is the -- happening in investments.

as not contributing a bigger share in respects to growth. this would lay the foundation for medium to long-term economic growth. that's without a risk. it will not increase the productive capacity of the economy and it will help in making sure that the economy goes on track as expected, and a summary ofdo demands. this is a more rapid rate of growth, we would expect exports to be affected by that's. peso this stage, is the undervalued and what is the correct value for it? >> we don't target any particular level of exchange rate, but it is important to

normallythat if we talk about depreciation of the exchange, it is beginning to cause some second round fx that could impact future inflation. historically what we have seen is that the exchange rate passed through depreciation to domestic inflation. that was overtime. the economy is more efficient's now, there is greater competition, and i think there .s also greater credibility an exchange rate weakening is not that strong. this.tinue to monitor factors,oned political i think, if you look at the overall performance, there has [indiscernible]

and political noise. economic growth has proven to be resilient. end of 2016, the fourth registered 72d consecutive quarters of uninterrupted growth. we have been growing since the first quarter of 1999. nogovernor you said there is target for the peso but a bloomberg survey sees it at specific values. it is beyond 52 in the market, will you become people at such a level? on the expected exchange rate, it is to allow the peso to itpond to market forces, but

is possible with participation in the markets, if the movements become too sharp or erratic, we're going to go against [indiscernible] are, oneicient targets bank, the circle of exchange rate movements, but if the exchange rate movements become the scope is for official action. >> thank you for your insights today. devonte, back to you. >> that was great stuff. we're going to head back to the meeting to speak to indonesia's finance manager. she joins us live just ahead. >> this is bloomberg. ♪

>> ford is jumping on the electric car bandwagon in china quarters. considers the automaker says it will introduce a plug-in hydrant -- hybrid sedan next year. it is also planning to make a fully electric suv within five years. ford is 70% of cars sold in china to be part or fully electric by 2025. metals are looking beyond china as the miners see increasing demand for steel. the company says it is well-placed to take advantage on anticipated growth in many countries. the asian development bank forecasts about two thirds of asia's 45 countries, even as a pace of expansion holds in china.

energy australia says the owner would seek a partial sale in his business in group. clp is likelyhat to keep a material stake. 5% on its assets were returned last year. a planned ipo with canceled in 2013 because of low returns. general motors says a lot of used cars will flood the market and track on his finance unit. the leasing portfolio will decline about 7% this year. that is more than to have be expected. february, a used vehicle index plunged the most in 10 years. concerns about carmakers, rental communities, and lenders. we turn to the governor's meeting in southeast asia.

we have reporter standing by. how sustainable is the target that they are looking at? >> is getting tough because we are seeing a rise in anti-globalization sentiment that will impact growth in enhanced trait as well. let's get perspective. she is the finance minister from indonesia. thank you for having -- thank .ou being with us indonesia will be among the biggest growers and asia. what is behind that optimism? 5.6. have the average of mainly there is a balance between the domestic demand factors, for example, investment .s growing quite robust it goes around a percent and slowing down at 6%.

consumption is also another part of sustaining at 5%. indonesia has a growing middle class and we have a domestic demand to allow us to have support for growth when the environment at the global level is not feasible. many factors slowdown since the financial crisis of 2009. now, with the protectionism coming up, it is supposed to be coming from major market destinations. that is going to really track down the recovery of the global economy. president gave his projections for next year. initially.6% from 6% kenny then achieve 7% by the end of his term? >> if you look at the perspective of any of these

it is still among the top 3%. >> but they are talking 7%. >> correct, i think the assumption was that global environments from the export is going to support what we could do in the domestic demand factors. that is more controlled by the government. in the past three years, during the first three years of the negative inports is contributing to growth. you can see commodity exports commoditiesy other manufacturing because of the weak demand in china. it is slowing down. uncertainty in the global economy. we can see that in europe, the .uro rest -- the u s

that is affecting the performance of growth. we perceive this as the first initial rate of the presidency is a strong environment. 7% target is not achievable and should be ditched? that within the first term, we are going to use all the instruments and policy of the government to revitalize and strengthen the growth coming from what we can do. investment will be something. more, and heve looks at the competition of growth and what the area, which is sustainable, admitted for indonesia. we don't do -- by putting more on a fiscal deficit, he doesn't really want

to do more structural policy like investment. do you want to be more radical of how to improve the environment or investment in indonesia? improved very significantly and he wants to do more. he wants us to look at, what is the constrained for the economy and that is really it. >> indonesia has claimed down hard on some views. was the downgrading of indonesian stocks affair move? was there a case for the research? >> we never actually clamped down in this case. if the government of indonesia ship with any of the banks serving our needs promoting indonesia, we will ask them to do that job. property butt only

also to make indonesia look, according to the fundamentals, i don't think the openness, we could hide any wrong policy, bad policy or bad figure in this case. if you worked for the government, then you have to do the job. i don't think, this is what is called climbed down, that's clamped down -- clamped down. we present indonesian policy as well as figures and, what any .nalysts could get from it this means prolonged negotiations regarding the mind. is it for a -- affair for indonesia to 151% of the stake

-- 51%o the local units of the state to go to the local units? this is really a process of negotiations. the contract is going to be whether we are going to continue under 2041 and in what term. this is a normal negotiation process. case, know what it will take to continue the negotiations. indonesia's current government has to abide by the law that we have to operate based on the law. the only difference today is that this is a process. the government can't do it behind closed doors. we are going to present what it requires and what is actually required by our law, and then they are going to

provide us with a proposal that they are having. it is going to be a six-month process, or even maybe extended. but that's will be the process. >> thanks so much for your insight today. wrapthat today, yvonne, we up our coverage from the ministers meeting. heading a back to you. >> thank you. in today's edition of daybreak, be go ifheck out the you are a bloomberg subscriber on your terminal. this is bloomberg. ♪

>> as more rate hikes are fridays-- signaled, jobs report is going to be the next focus for investors. editorook at bloomberg's with a preview right now. quite bigst is a number. doesn't countthat street people. he made another chart, 7567. bottom line on this, it shows the first two months of the year were strong. payrolls are up 200-8000 and

35,000 -- 235,000 in march. it would be the strongest force quarter for the united states since 2015. earnings are down to 2.7% year over year. as the question with that one. wicker wage gains, will that mean weaker spending? a lot of people saying it is the port number. how many times have we said -- heard fed officials say it's part of the mandate. earlier, on thursday, john fediams talked about the and why they're hiking rates. here's what he said. >> we are raising interest rates in the u.s., not because we want to, because the economy has approved, we are closer to our goal, it is a sign of strength

of the u.s. economy. it is also a sign that we are getting closer to our goal. >> very interesting to know that they are raising a red light on the economy, he says uncertainty over trump is slowing growth. could behe first order the weakest of all the g7 countries. theou want percent saying 10 year yield is going below 2%. that is another reason why this job is so important. >> thank you. that is it from us from daybreak asia varied bloomberg markets is coming up next. ♪

♪ it is 9:00 a.m. in hong kong, 9:00 p.m. in new york. i am haidi lun. this is "bloomberg markets: asia." ♪ haidi: the meeting at mar-a-lago, two days of talks, both sides needing positive headlines. markets watching the body language in florida, trade, currency, and north korea on the menu. initial readings show samsung be