>> janet yellen says the economy is healthy, continuing modest growth. of political risk. the longest winning streak of the year. anchor: a sign of the times. tesla's prospects push the stock higher again. the company is worth more than general motors. anchor: and why japan is finding it increasingly hard to find a domestic higher for toshiba's chip unit.

we have the world covered here on "bloomberg daybreak: asia." we will be live in sydney and melbourne. tokyo, cross over to where we will be watching whether toshiba will delay its results again. anchor: it will be interesting to see if that happens for a third time. hopefully not for investors. in new york, the top story is the fed and its policy. we will have more on that later. welcome. this is "daybreak: asia." in new york,cencio where it is after 7:00 p.m. on monday. anchor: i am shery ahn. have been muted across global markets and we have the easter weekend coming up. asia may not be a game changer. policyot have that much decisions coming up, so all the focus seems to be on janet

yellen and her speech at the university of michigan. ramy: that's right. she spoke a couple of hours ago. she said the u.s. economy is pretty healthy. that is actually a quote. we have all been talking about the unwind of the fed balance $2.5, $4.5 trillion to trillion after our talk with james bullard yesterday. we do not know when that will happen. meantime, we will be on pins and needles. looking at stocks, we much flat. shery: the dollar has been pretty cautious ahead of that ixeech and of course, the v jump into this year's high. in asia, the only market open at the moment is new zealand and we are not seeing really that much change in early trading. the kiwi dollar, do keep an eye on it. westpac switched from a neutral to negative bias on the kiwi this week. quarterie dollar, last

is best to g10 performer against the dollar, now being pressured ore, thefalling iron metal now entering a bear market. futures pointing lower. slightlyikkei futures lower although we have got to say the nikkei did rise for the past two sessions. we are seeing some strength on the japanese yen as well. let us stay in the region and head over to china because a tech conglomerate has been forced to drop its $2 billion vizio.ition of selina wang joins us from new york. about the know pullback in the u.s.? selena: a projected $100 million of revenue for 2016 and they

only reached less than 15 million. selina: they also have plans to cut about one third of the u.s. workforce and the timing of that is dependent on when they can amass enough funds for seventh payment, so they are suffering from a cash crunch, another sign that the billionaire who empires this has tried to expand globally far too fast and execution have not come through. all of this has fueled a lot of uncertainty and frustration in u.s. operations. last week, he delayed paychecks to u.s. employees. ramy: how damaging is the collapse of the visio deal? pretty damaging. this was supposed to serve as the foundation for getting and u.s. customers and like many tech giants, their goal is to have this big, connected ecosystem of devices and services that work seamlessly together. they have got the phone, exactly.

they all want to do it. without visio, they do not have the brand presence. no matter how cheap they price their products, recently don't have demand. ramy: what happened? isina: the company said it because of regulatory reasons and it is true the chinese government has been curving outflows and trying to control capital, leaving the country, but sources tell me some of this figuredeeze might have into this. they are struggling to raise funds, have enough cash to even pay their employees, so it seems clear that this 2 billion-dollar acquisition probably is something that would be quite a squeeze for them, so regulations are probably a part of it, but there is also the problem of cash that plays into this as well. ramy: if you cannot pay your own employees -- selina: right. ramy: selina wang, always good to speak with you. first word news with nina

melendez. nina: janet yellen says the u.s. economy is "pretty healthy." reviewing the bank strategy, she said the fed was close to its objectives and must sustain the progress made so far. she said policymakers would raise rates gradually and want to avoid being behind the curve. the growth in productivity was disappointingly low. >> if inflation threatens to rise above our target, we do not want to be in the position where we had to raise rates rapidly, which could conceivably cause another recession, so we want to be ahead of the curve and not behind it. >> toshiba is due to report earnings at odds with his auditor. the nikkei news says they are questioning internal control that toshiba's bank. nina: the accuracy of past earnings statement, and the 2013

acquisition of a reactor construction company. toshiba has twice delayed filing earnings and another postponement could affect its tokyo status. needs to sell assets to cover the in losses that areinghouse and the bears lining up for the unit. the government wants the business to stay in japan, but the leading offers are from abroad. companies have submitted bids of around $18 million, but is said to beny prepared to pay as much as 27 billion. it could avoid the risk of policy normalization by changing the game when it is time to tighten. today ohio, says instead of raising the field yields target for 10 year government bonds, set out above zero, governor kuroda could switch his target to yield on bonds of shorter duration. global news, 24 hours a day,

powered by more than 2600 journalists and analysts in more than 120 countries. i nina melendez. this is bloomberg. ramy: thanks very much. u.s. stocks ended the day little changed. they dropped. here's rick and off for us is su keenan. what happened? su: treasuries up and stocks going sideways. a lot of technical aspects. stocks have started to rise only to hit technical levels and fall apart, so that indicates there are certain factors on. and the market also is shifting away from economic focus to global focus. if you look at the big movers here, we have got, you know, little changed on the day for the huge market, but let us go to merger activity or the potential for merger activity. $1.6 billion deal. it sent that stock higher. battled license

holder. a lot of strategists fostered the deal. all foods is set to be up for sale. of theyou see a bit volatility, a big drop for the syrian strike and the second strike coming back to 2.2% which is testing resistance and that appears to be the pattern bonds are in for now. will, by the way, moving higher. it was one of the bright spots of the day. shery: let us talk about tesla. revving up their engine, if you will, briefly surging past general motors to become the biggest carmaker. how significant is this? selina: it is interesting why taking over gm, they are now the biggest by market. in terms of large players, they

are now number six among all the major automakers. about one billion with from honda and ready to crack the five. take a look at how they are outshining the classic automakers in terms of the value per car sold. while they don't sell the volume, it added to the value. this is a stock you do not want to be short. it certainly has a lot of momentum behind it. reportsells fargo also earnings on thursday, but they made some waves by hiring back 1000 staffers. what is the latest on that? su: a: a lot of these -- lot of the staffers were forced out because they would not engage in fraudulent practices taking place. all of these bogus accounts were added and now the heat is on for these former bank managers,

ceo's, climbing back. some of their salary in the tens of millions of dollars. options are being taken away and a lot of these employees who were sent out to pasture were treated like robgues. the new ceo said this is not going to be happening again at wells fargo. that is the message. shery: su keenan in new york, thank you. still ahead, the auction of toshiba's chip unit is growing. we will talk about the potential winners and losers. fed'splus more on the focus shift and the implications for markets. our conversation with shorter investment's head of asian fixed income is next. this is bloomberg. ♪

ramy: welcome back. this is "daybreak: asia." i am ramy inocencio in new york.

in hong'm shery ahn kong. janet in hong kong. janet yellen says the fed is moving towards a gradual rate hike -- with a wrap up. kathleen, the fed, pretty determined to move ahead with rate hikes. kathleen: a boiled it down to a simple formula. janet yellen was speaking at the university of michigan, interviewed by a susan collins from the business school and students asked questions but bottom line, she stuck to her story and she calling for gradual rate hikes, and here is why. number one, the economy is near full employment. she thinks it may have started to go to low on the unemployment side. inflation, the 2% goal. fallinghas to avoid

behind the curve. if they fall behind the curve, later, they had to hike rates quickly and could push the economy into a recession. it was a couple interesting things she said along the way. unemployment might be a misleading indicator. in other words, maybe it does not give us a true picture of the economy and there could be more slack. when asked about inflation, she talked about inflation expectations as being an important determinative. let us look at #1085. inflation expectations have started to taper off. inflation expectations five years out, you can see how that has been flat, turning lower and wall street, the break even five years out, that went out. it is starting to taper off, so it is interesting. janet yellen not deterred. if you are wondering what she said about the balance sheet, do not. no one asked her questions about the balance sheet, so probably the hottest topic out there right now in addition to rate

hikes and when and how many, we did not get additional information from janet yellen, although as recently as 24 hours ago on daybreak asia, firmly on board with the move towards reducing the balance sheet by letting the proceeds, the rolloff of the investment they get when the bombs rolloff, so anyway, we will have to wait until the next speech for that. ramy: how can you not ask about he is head of asian fixed .ncome very good to have you on the show. off, with all of this impactre, how does this the dot plot? you guys know this so well. dots go on the bloomberg terminal. we are looking at three for this year for the bottom left of your

screen. with all of that, what is your thought? attach a lot of importance to the first year because the people putting in a fed. as you go out to 2018 and 2019, you see the big gap between the dot plot and what the markets are pricing in. the markets are pricing in much less and that is partly due to expectations of an unwind of the balance sheet which cannot be represented on the dot. and we heard from bill dudley that they would take a small pause so that if he has one that is. there must be a little bit of that as well. it is difficult to put too much weight on dots. most of the members are going to change, so we have to be a little bit careful of over interpreting dots. shery: when it comes to reducing itself, andsheet the way they go about it, should

the fed be implementing a passive approach to stop reinvesting or actively manage this unwinding? think they clearly have to actively manage, because if they are just passive, the balance sheet would move down depending on the maturity of the bond, and we know next year, 2018, there is $404 billion which will much her and the hereafter, it would be slightly less and then slightly more. there would be little control on policy if they just passively let it unwind, so i think they will target an amount and follow that over a period time. fed islready know the looking for a consensus. 14 of the 70 are looking for three rate hikes. the market is, you know, fixated . the market must be saying maybe the growth is going to be strong. if the fed is wrong on growth and they have to back off on rate hikes, will they also have to back off on reducing the balance sheet? guest: yeah, i think so.

the balance sheet and the indication of market expectations towards the beginning of next year, it will start reducing, so if we see some wobble in growth, the first thing to do is to delay one of the rate hikes and they have been quite comfortable doing that in the past. and then pushing back on that. she reduction. that is how i see the sequencing, but the difference you see this year between the dots and market expectations, i think the market is pricing in some chance of a slowdown and that is not in the dots. the dots it's for everything going as planned according to the fed. shery: talking about market expectations, and kathleen well.ned this before as inflation expectations being tempered, if you take a look at the bloomberg, you can see the breakeven rates in the u.s. are the two falling through tenure curve and blue among the indicatorsalso said he knew 2017 lows.

given the breakevens have in fact been a good place for nominal bond shorts to hide out earlych of this year, how is it to sound the all clear for the bond bear? i think partly, those breakevens have come i think pae breakevens have come down -- but i think when he see unemployment slightly below the 4.5 percent and labor market conditions tightening, and you well -- politically as well --

anecdotally as well, you should see more pickup. give us more detail on that thought there. the fed decides not to reinvest parts of the year,ng $404 billion next there has to continue to be issuance. the fed would be buying with those $404 billion, so someone in the market will have to buy it, and i will probably make yields rise. why would they make yields rise? the short and is anchored by the fed funds and the fed has a target maturity. so that means it would move all of the yield curve slightly up and that is what would give rise to some steepening, so that is one reason for the steepening.

quite a few members of the federal change. quite a few members of the federal change. -- of the fed will change. uncertainty around the competition of the fed. i want to ask you about the behavior of the 10-year note because it is right now around 2.36. and you are suggesting markets offsetting the number of rate hikes. what thepretation of market is doing my now is that they doubt the strength of the economy, they doubt you are going to get the inflation pick up, because right now they are -- labor market has been falling. and broker dipped, out of the range temporarily.

rajeev: i think there is a few risks on the horizon as well. in a few weeks time, we have the first round of the french elections. i think that represents a risk which could, you know, is bringing down german bond yields which in turn are bringing down u.s. bond yields. that spread between international and u.s. bonds is very important, and the fact that german bond yields are releasing lower it is also contributing to putting down u.s. treasuries. that there is a small percentage chance, but a chance that a populist winds at the first round by a larger than expected margin, giving a much larger risk to europe once the french votes again in early may, for the second round. just as brexit was a risk to global markets last year, i think the french election is much more of a risk this year. pricing is being reflected on the treasuries as well. ramy: we will have to leave it

there. i want to thank our colleague, bloomberg zone kathleen hays. own kathleens hays. you can get around that of the stories you need to know to get your day going. it is in today's edition of "daybreak." bloomberg subscribers don't to dayb . this is bloomberg. ♪

ramy: welcome back. this is "daybreak asia." shery: i'm shery ahn in hong kong. latest check of the business flash headlines. senior executives of deutsche bank stopped short of wrapping up their holdings during the bank's latest capital increase. john cryan, his deputies, and other board members largely

bought shares to maintain their states. $8.5che's raised about billion as part of a revised turnaround plan. it may alleviate concerns. isy: jes staley phases what described as "a significant pay cut an investigation," for trying to find an anonymous whistleblower last year. the bank -- staley could be fined or banned from the industry if he steamed not fit to lead the firm. -- if he is deemed not fit to lead the firm. directors. previous the market misconduct tribunal found no wrongdoing within the meeting. he was asked to determine whether any misconduct returned on september 9, 2008.

the commission is studying the decision. ramy: coming up, pimco has become less bullish on the dollar against emerging asian dollar against emerging asian currencies, taking some dollar against emerging asian currencies, taking some i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second.

you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business.

rainy tuesday in hong kong, 7:30 a.m. and futures are looking a little bit down. 30 minutes away from asia's first major market open. seven: 30 p.m. monday in new york. the empire state building is green today. the markets, i guess they were green, too. they were more along the flat line. s&p up by .07%. energy was the biggest gainer. it might hold onto the production cuts and keep going. i am ramy inocencio in new york. ramy: i'm shery ahn -- shery:

i'm shery ahn in hong kong. let us get the first word news with nina melendez. a chinese tech company has dropped its $2 billion pursuit of euros tv maker visio because of regulatory issues. bloomberg reported this month that the deal is being held i onhter chinese controls currency outflows. the failed pursuit is another sign that plans are faltering. the company is struggling to raise cash. chineseg has been told regulators will require coal miner's to self recorders of their supply to metal makers. drc isrces say and imposing the requirement on mid-and long-term contracts and demanding at least 90% of the total volume in each contract livered. miners you feel to comply will higher powerr -- costs. a shortage of cash for infrastructure projects. proposing to offer

licenses to private companies to set up special banks to help finance roads, ports, power, and other projects. spending is estimated at $1.5 trillion over the next 10 years and the s&p global ratings says the funding gap is shaving 5% off of india's gdp. yes trillion prime minister -- the australian prime minister has warned that it will not happen anytime soon. his predecessor, tony abbott, fora 12 month deadline securing a bilateral trade deal. sticking points include agriculture. longull says india has a history of protectionism. what one is, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. nina melendez. minutes away27 from the open of major markets in the asia-pacific.

here is bloomberg markets reporter in -- falling into the bear market and putting a little bit of pressure on the aussie dollar, so what are you watching out for today? yes, the local stocks have fallen for the last four straight quarters and there is a lot of talk about -- with investors about the index. it was the highest since -- ramy: all right. you know, we are having a little bit of technical difficulty with that microphone, but we will get that fixed and than get back to you, but that is head over to singapore because pimco has become less bullish on the

dollar against emerging asian currencies, prompting it to trim its investments in asian bonds. it says they are looking relatively expensive. our chief international correspondent, haslinda amin, joins us on top of this, so have is in bonds --our asian bonds losing their luster now? haslinda: it is time to dilate down. there is concern asian bonds have become too expensive given the massive inflows. we saw the biggest implosion more than two years. u.s. healths failed care reform, that reflation trade we have been talking about is losing momentum as well. take a look at this bloomberg chart. asian bond yields. they are starting to rise as reflation trade starts to wane, so not surprising, emerging asian bonds from india to indonesia have dropped, and pimco was in favor of those

local currency bonds over the last 12 months. they gave among the highest yields and asia. that is no longer the case. bond strikes look like they are prospect of an investment upgrade by s&p and they no longer look cheap. pimco back searching, looking for opportunities either in terms of new issues or the widening. shery: and has pimco also underway to some asian emerging market bonds, so how about prospects for chinese debts? haslinda: we know chinese regulators are taking steps to further open the chinese bond sector. it wants chinese debt to be included in indexes and it may happen as soon as this year. if that happens, pimco says china may just be able to attract between 30 billion and $40 billion in inflows in 2017 and 2018, and you know what? over the next few years, china

may be able to build on that if we attract as much as $300 billion, so there is -- it is looking pretty exciting. amazing acceleration. get ready for a transformation impact on global finance, so brace for that rise. [laughter] shery: we always are bracing ourselves. the markets are very surprising sometimes. thanks forin, joining us from the latest calls from pimco. so you were telling us about what you are watching out for today in australia? so, yes. like we were talking about earlier, iron ore, as you said, it is a bear market, but today's focus right beyond the mining janet, but not because it is commodity prices, and that is bhp, of course and the company suggestions from an activist shareholder, which is a

new here in australia and we will have to see what investors react to with the stop this morning. ramy: looking ahead to the rest of the day, what are we going to be looking at in terms of how the day is shaping up? treasuries rose and crude at its longest-running days so far. >> yes, we will have to see how much sentiment is in the u.s.. there is talk of geopolitical tensions and south korea stocks in the kospi fell the most in about a month yesterday, so we will have to see a much that picks up. futures, across the region, or most of the region, pointing to a lot of stocks. ramy: we will have to pay attention. of next, we look at reports toshiba -- this is bloomberg. ♪

shery: we are counting down to asia's first major market opens this morning. nikkei futures pointing lower down .2%, but that of course after strengthening for the last two sessions when it comes to the nikkei close and we are seeing japanese yen gaining ground against the dollar. this is daybreak asia. i'm shery ahn in hong kong. i'm ramy inocencio in new york. it protect of the latest business flash headlines right now. first up, indian e-commerce has secured an investment from ebay. tencent and microsoft. rivals its positions for the inverse. softbank is closing in on combining snap with clipart, creating a stronger player to

compete against amazon. company financial backed by tencent may be close to raising more than $100 million. the company says it plans to complete the fundraising by june. the company is planning to use the money to set up an office in silicon valley as it expects to obtain a u.s. brokerage license next year. it's at has 3.6 million users. shares surged the most in more than two years after activist investors acquired a stake and suggested the organic food grocer put up for sale. it had taken and a planter percent stake in the supermarket chain which has suffered its worst sales slump in more than one decade. japan's determination to toshibasheba's -- memory unit hit by a lot of domestic interest.

submitted bids valued at $18 million or more, with a company wanting to pay as much as 27 billion. joining us is the professor of management and information. but has her, thank you much for talking to us. the earningss reports we are looking at of to sheba today. .e could see another delay that would be a third already. what would that mean for the company? is an unprecedented situation, but the government is more than willing to give it a go to have another extension considering the fact that the impact of a delisting of toshiba would have. exchanges make no exception whatsoever, but we all know if that after looking at what happened, basically pulling down a company that has such a big knock on effect would have profound negative

implications for the whole economy, so i think the government will probably give it another wait and see approach and will give them another curfew, if i may say so. shery: when it comes to the government, they do not want to going tochip unit foreign hands, but we are now, as a mentioned earlier, seeing a lot of foreign bidders. what is the likelihood of actually going to an overseas company? guest: as you pointed out, there that havecompanies raised their hand to join this. is really willing to concentrated to the japanese because we would like to sustain, you know, the technology from eroding. you're talking about consumer electronics, sharp, they can go, because we have far too many companies. we need we consolidation in the industry, but as far as this

incident is concerned, i'm sure the government is trying to hold back as much as possible to giving it to the foreign nationals as far as -- ramy: i understand from bloomberg is reporting here that there are no domestic companies who have said they are interested in to sheba's assets right now. what are you hearing, and why is the situation is far too ambiguous. the companies have a high level of uncertainty avoidance, and that is exactly what you are seeing. they always liked to take a wait and see approach and that is why we are so bad and m&a. risk-taking the abilities are not that good. that is why, you know, we are talking right now, because of this westinghouse incidents, where toshiba did not do their homework really come in my opinion. ramy: i want to hop into the bloomberg terminal and look at this pie chart of the revenues at toshiba gets.

i want to turn your attention to the green pie charts life. that is 27% electronic devices and components, to about the semiconductor and the chip business. infrastructure takes up 34%. if they sell the semiconductors, what is toshiba going to be known for than? seijiro: actually, they probably would like to sustain some of by part of the business joining in. i do not think they will sell off totally. for example, tv, with the announcement that they will sell off the division, the price went up. this is not only toshiba. this is most of the japanese countries. they may have to make this reallocation of their resources, which is not being done. toshiba will have to, obviously,

fortunately, they will have to take that path to concentration of their core businesses. shery: take a look at the bloomberg again, and you can see that one of the key business segments is in fact storage and electronic solutions and we are seeing this increasing demand when it comes to storage of electronic devices. how much do we expect this to help to sheba bottom line and their reorganization, overhaul, of their business? nina: -- nina: what to sheba is negotiate -- seijiro: toshiba needs ¥1 trillion of further funding. to cover the loss of westinghouse. they are putting the shares of their subsidiary as a collateral, especially in the areas you mentioned, so they are using it as a gearing to sustain their operation, but the bigger question is what are they going to do afterwards?

withcan get away possibly this situation by putting their shares into collateral, but their power and dominance over their local walmart is going to decline substantially and again, they would have to make that scrap and build and concentration of the resource to be known at what they are really good at, so they really had to define their basic strategy from the very core in order to sustain operations in the future. ramy: in terms of the timeline here, if they were able to carry out what you are saying, could this be the inflection point sometime this year or so? backdrop. against the this is the an hour function -- the analyst recommendations on jim. the 12 month target price is below that price right now and the world are seven, the cells there are some, but not many. is this an inflection point? seijiro: well, it could be very

much so. i think what we are seeing is the ambiguity thatcher mounting so much that the market participants really have no confidence. the banks are saying they will support it, but we are talking inut regional banks that are just about the current situation. it just shows you the wobbliness . you are seeing that very clear in the stock prices i think. signals toshiba's challenges in regards to electronic? seijiro: make sure you stick to your core competence and start making scrap from the old process. we don't need all these companies doing the same thing for everyone and let us be very careful. that is when a little bit more about overseas and m&a. the japanese domestic market is

not going to grow that much considering our demographics and maturity of the economy, so going overseas is a natural thing to do, but do not go blindfolded lee. do a little bit of your homework to whether it can make synergism or not. japanese are still very horrible at overseas m&a. we could go on forever talking about this negativity. they have to start learning the lesson and toshiba is a good , stark example of what not to do it overseas mna. of course, toshiba does get 60% of its revenue overseas. a lot of people earlier were thinking the yen could depreciate, but it is not year-to-date, it has appreciated 111.8%, nearly below the handle here. talk to me about this pressure with the repatriation of profits. seijiro: companies including

toshiba has coped, with the currency moving. they have done that eloquently through progress, innovation. japanese companies are good at that. of course, you know, at this bad news forlly is toshiba if the yen strengthens. it will be a double whammy considering they need a little bit of breathing room and all the room. banks.e negotiating the every bit helps. if you get strong yen, that really is going to be bad timing for the company, i think. hasn't, and electronics are not necessarily the pillar of japanese exports as much as they were in the past, so how pessimistic should we be in fact on the competitiveness of japan as a whole? seijiro: he should not be,

really again, that is a good point, because people tend to misunderstand that japan is going over the edge because we the sharp incident and toshiba selling a tv. this is what we need. we are not living by home electronics anymore. we are getting into more innovative issues. .hat is where we stand a lot more creativity should be repealed, but that said, we are doing a very good job and there is a very good scope in various industries. we have a lot of problem on the structural side of the nonmanufacturing side which really needs to be a lot more efficient, because we are dragging on the negative side of the japanese style and many of these companies. i wonder how the korean

will factor into the competitiveness for japanese exports. has a, thank you for your time this morning. -- professor, thank you for your times morning. coming up, we've a look at why the hp has rebuffed a billionaire, saying his restructuring proposals do not have many benefits. this is bloomberg. ♪

ramy: this is they break asia. shery: i'm shery ahn in hong kong. -- ramy: this is daybreak asia. shery: i'm shery ahn in hong kong. the proposal by eliot management to spin off its u.s. oil assets and change its stock listings would have more cost them benefits. we are joined by bloomberg's commodities reporter, david.

like,t exactly don't they bhp, when it comes to this plan? well, look, the plan put forward by elliott management has three essential factors. one as you have mentioned, spinning off those u.s. oil assets, the operations that the hedge fund think are worth billions. it calls for an overhaul of the company's, consolidating two legal entities. one in melbourne, one in london, mistedsingle company primarily in london and lastly, theanted to ensure shareholder returns were prioritized over things like acquisition and it wanted to change some of the mechanics inund how dividends are paid simple buyback. php basically rejected all three of the options and said they would risk destroying value rather than adding value. elliott management had thought

they could grow shareholder value by 50%. p say australia's foreign investment review board would need to review the proposed changes to the company plus structure and most importantly, they say there is no real added value in listing the u.s. petroleum assets. they don't see any reason for spinning them off. elliott had suggested they should be listed as a separate entity on the new york stock exchange. bhp has flatly rejected that and said they considered many of these proposals previously themselves and rejected them and said they are continuing to talk butjust to the hedge fund at reinvestment. ramy: we have to leave it there. thank you for that interesting stuff developing over with pulsing or -- with him.

the first major markets open. shery: let us bring in david u.s. to tell us what we should be watching at the open in australia, tokyo, and korea. david: it looks like a down day, so let us look at the names. s&p placing the company's debt, creditwatch negative. line with being in the company's strategy, when you look at the key ratios, debt to earnings, they are likely to essentially not look good after the acquisition. quite a bit of a long time there. billion wonhere, 62 of shares. we are watching energy shares here. oil is up. the airlines following through there. futures, very quickly, a down day across the asia pacific

today. don't mess, if you will, so we are looking at an open here of about 18,000 on the nikkei 225.

shery: markets assess geopolitical risk. oil post its longest winning streak of the year. janet yellen says the economy is healthy. rate hikes will still be gradual. shery: foot to the floor, teslas prospects chris the stocks higher again. the company is worth more than general motors. money laundering and human

trafficking allegations are swirling around a casino on remote u.s. territory. shery: this is the second hour of "daybreak asia." from u.s. andlive asian headquarters. i am shery ahn in hong kong. ramy: i am ramy inocencio in new york. shery: we have said there was caution in the markets expecting janet yellen's speech at the university of michigan. the dollar index calling for a second consecutive session. i have to mention, there is dollar support out there. now you can see in the second bloomberg indicator saying that there's maybe capitulating. it is just turning positive. also, the bloomberg dollar index to 850 and 100 day.

is quite important as many asian currency start trading this hour. the korean won weakening for the fifth consecutive session. this will affect with the equity markets also do. pop into my bloomberg terminal. i want to show you how this is been performing. this is world currency ranking. the bottom left of your screen you can see it is down .69%. we also saw what was happening in syria. and now the u.s. is heading into north asia, potentially ratcheting up tensions with north korea and china. happens laterat on this week if there are any developments. actually, i will go to david. shery: let's go to david. relax, no one needs to fight over me. let's look at the markets.

can get the bloomberg up here? we are looking at futures right now. when you look at markets, can you take us back? i will hand it back to you guys. i will get this sorted and get you all the developments. ramy: i will take it from here. we will look at what the first word news is. janet yellen says the u.s. economy is pretty healthy. outlook continues to grow at a modest pace. she said that that was close to its objective and must sustain the progress made so far. janet yellen also said that productivity was disappointingly ratesd they might raise gradually behind the curve. if the economy ends up overheating and inflation threatens to rise above our

target, we do not want to be in a position where we have to raise rates rapidly, which could cause another recession. we want to be ahead of the curve and not behind it. >> australian prime minister has warned a free-trade agreement with india will not be happening soon. your is making his first official visit to india. set a 12is predecessor month deadline for securing a bilateral trade deal. india has a long tradition of protectionism. a chinese company has dropped its $2 billion suit of visio because of regulatory issues. bloomberg reported the deal was being held up by china. it is another sign that echoes global expansion plans are altering.

their founder has admitted the company is struggling to raise cash. united is facing a social media storm after a passenger was forcibly dragged off a plane due to overbooking. the airline had asked volunteers to lead the airline. no one agreed to be bumped. chose thety officers man in drag him away. united is conducting a review and has apologized for what it called the overbooked situation. global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ shery: thank you. 1% aheads trading down of its tuesday deadline. toshiba gained more than 6% in the last session. it is emerging that it is at odds with its auditor over

internal controls and its bankrupt nuclear unit. a reporter has been tracking this. what is the state of play with toshiba? we are wondering, will they or will they not delay their reports again? itsrter: toshiba is facing third deadline for reporting earnings. they would typically do so after the bell in tokyo later on today. it is important because they come out with the results, we will get a final tally on how much the problems in the nuclear business will cost the company. if they miss this deadline, they have a couple of choices. they can seek another extension for reporting earnings. this is for the quarter that ended in december. or, if the regulars will not give them an extension, then they only have eight more business days to finalize their books or they face delisting from the tokyo stock exchange. it is a significant deal. they have put westinghouse into

chapter 11 bankruptcy in the u.s.. they are trying to sell that business.ess -- chip shery: we have heard of significant interest about the chip business coming from overseas. how is that going on? reporter: there is an auction process going on right now with bits from all sorts of different parties. toshiba and the japanese government would like to sell the business to a local company of possible. they have not been able to get local companies interested because of capital shortages and strategic issues. instead, they have gotten dates from foreign bidders that have been very aggressive. of $27ng a high bid billion. a korean company is also interested. broadcom has also submitted a bid. there are a few witnesses outside of japan that are

interested. we could see other companies come into the mix. ramy: there are also political hurdles here. talk about what is trying to keep the company within japanese hands? reporter: betty: -- reporter: the japanese government has said that this business, be -- the chips that go into your cell phone to store things is a strategic business for the country. they do not wanted to go to china regency factories being where you can see factories being built with this technology. they think they would move -- production companies into china. look ahead to later this week when toshiba is supposed to report its earnings. we will see if they actually do. let's get a look at market

action in asia. japan, korea, and australia are all up and running right now. david, what is happening? david: down in writing is a better way of putting it. we finally had it going. life tv ladies and gentlemen. .05% lower. slightly decent bid for new zealand. there is lack of appetite out there. when you look across the currency space, yen strength, we are at weakness across the nikkei 225. the bond space is telling the market story for today. we see the yields essentially moment soed at the there is a lot of caution. it is really geopolitics over economics this week. i'm watching oil and i'm watching airlines. white line is west texas. yellow line is bloomberg asia-pacific airlines index.

both have taken all. at some point it gets to a level that is disruptive to the bottom. 53.19 on the most active contracts we have seen. this is the longest winning streak for oil going back to december. at some point, there is lots of news out there if you look at the forecast, inventories are expected to ease. in venezuela, there are a result -- a lot of results coming out of there as well. togethert that i put is to show the market teams this week. i talk about oil, the canadian dollar is in yellow. currency is better performing. this is benchmark to 100 going back to friday. you have the aussie dollar in blue. when you talk about risk premiums being built in, there we all -- are on one dollar.

that is another way of telling the story. quickly, a few bits and pieces of eco data out today. andome point between today the 15th of the month, a lot of important data coming out of china. tomorrow is a big one when it comes to inflation out of china. not the most exciting of days, but we need this day, when things get ratcheted up, we will take it. ramy: you always make everything sound interesting and excited. do not worry about it. still ahead, human smuggling and money laundering. is drawing law enforcement scrutiny before it is even built. shery: plus, while some investors dissect the macro data, a guest tells us what

positioning is more important for market returns. this is bloomberg. ♪

ramy: welcome back. this is "daybreak asia." i am ramy inocencio in new york. shery: i am shery ahn in hong kong. japan's top three brokerages are cutting back on graduate hires. they are planning to add a total of just over 1500 next year. that will be the lowest in five years. mortgages are cutting back on their retail businesses as household investors continue to shun the stock market. ramy: wells fargo is looking to make amends as they go by the accounts scandal. they are looking to rehire 1000 staff after a report about long-running abuses. they are paying back $28 from

the former ceo after determining he has failed to heed warnings up abuses over more than a decade. barclays ceo says they -- he will take a significant pay cut for trying to identify an anonymous whistleblower last year. they're looking at the conduct and the banks responsibilities and controls surrounding whistleblowing. it could be fined or even banned from the in history -- industry banned unfit to lead the firm. ramy: investors are taking the side of caution on the last few days as geopolitical concerns built in asia and the middle east because of syria last week our next guest things market returns are dominated by positioning and that macro data is actually not driving risk. the founder and

ceo of a securities form -- firm. these are thinking it is macro issues, but you can't discount what is happening with the fed, janet yellen as well. what are your thoughts on that as we are just coming off of her q&a at the university of michigan? >> good morning. i think it is interesting the way that you framed that on the basis of, when i think about what the fed has done and the line about reducing the balance sheet, and then an argument between the dead and still getting the treasury market, it is pretty sanguine. i would argue either the fed has done a fantastic job, or that the market does not care about it anymore. the reason i think positioning they important is because cleans up a lot of the back narrative. what has driven risk for the

last six weeks or so was a very they short based in u.s. 10 year treasuries. and then the correlation between u.s. 10 year treasuries and the rest of the risk platform. i do not think it is as easy as that always. i think it is a nonstatic relationship. but i do think the positioning is by far the most important thing right now. ramy: one interesting thing i saw in your note is about active management as well as passive management. if you could hop into the #2035.rg, this is #23 -- some would say this is an argument to go back into active management. what is your take on that? >> this is the hot topic. the active guys have been the whipping boys over the passive

guys certainly over the past 4-6 months -- in some would argue before that. when you have a world of central bank policies determining where all the passive guys go, high interest rates have been going in one election over the past 6-9 months. it is hard to fight that trend following money. what i think is interesting is what blows these traits. you now have a huge amount of assets went into the -- crammed into the same traits. bankhing like a central policy change that is not expected could help, or something like a volleying. deteriorating the last few years. it could be something like that. expect is see more flash crash types of environments over the next several years. ramy: you are taking about -- talking about the money flow. that brings me to my next chart.

as lizette fund flows. -- this looks at fund flows. the green is the positive fund flows into the united states and japan. china is all the way down at the bottom. in theterest here eurozone, it comes in number three. but it is not comparing to what is happening with the u.s. and japan. but you think this is going to start any need to get into it now? >> i can't see what. app,at period updated your but can't just of what the bank said last night, the ecb is filling a powder keg in terms of policy relations. politicallyhe most sensitive of the central banks. it is building up a power k and he cannot do anything because of the french elections, the dutch

elections, and later on for the italian elections. at some stage given where inflation expectations are, they have to normalize a little bit quicker than what the market expects. in that environment, things look good for europe. that flows have not been going into europe for the past four-five years now, that makes for a fantastic environment. shery: it is interesting that positioning in the markets. i see a reactionary trend in the market. over the night we saw brought dollar weakness on as thank you to -- on unsubstantiated claims that chinese troops have moved in because of north korea. how important is geopolitical tension in northeast asia when it comes to the markets, especially in the next few weeks when we are not getting too much macro data or policy decisions? think it is not very

important at all. ist drove risk last night the investment community on short bonds. you're getting a plane trade going on. you're getting yields down which means dollar down, then he can on thenarrative you like dollar being down. i do not think it is much more complicated -- i don't think the market cares too much for the korean risk right now. i think it will do very quickly, but i do not think it is a trade somebody will put on. if it was an explosion or any kind of scenario, then sure, but not here right now. you don't like emerging markets either. if you look at my bloomberg you can see the down trend in the market space is actually basing some resistance. there might be a technical

nature where we could see this em markets not rising as much as we expected. what is your reasoning for not liking these markets? emthe clearest thing about is it is driven by two things, primarily by its relationship to the dollar and equities. thing about em is there is a really clear rotation that happens between europe and the em that has been happening for quite a while. when investors come out of the u.s. markets they venture into them europe, they don't do both at the same time. shery: thank you so much for joining us. of a securities

firm. in axt, the investigation casino expand to include allegations of human trafficking. details coming up. this is bloomberg. ♪

shery: u.s. law enforcement agencies are investigating reports of possible human smuggling and money laundering associated with a casino on the pacific island of saipan that caters to chinese highrollers. it is the latest chapter of a story that broke in november. one of our reporters have that story. you've visited saipan, what is going on here? reporter: this is a big casino run by imperial pacific. an offshoot from the capital controls that were happening in was getting atau

the time. they were finally vips to this new temporary casino on the u.s. island of saipan. keep in mind that if your pacific, hong kong listed and run by a farmer -- former macau executive, they claim they are not doing anything wrong. but, the eye-popping numbers that are coming from the casino that have been open for a year caught our attention and copy attention of u.s. law enforcement agencies. offices onded the the island of saipan, near wall on march 30. they found a cabinet full of chinese passports for their construction workers as they are building this new, larger facility. feet casino to attract more chinese vips. they were working without credentials and visas. one arrest was made on reports of systemic humans muddling.

in addition, people familiar said the justice department is also investigating the activities of the casino itself. ramy: you talk about eye-popping revenues. they are from a temporary casino. billion in the ipo alone. that is amazing. investigations slowed the progress down of the building? in march alone. $1.6 billion in the month alone. it is more than we are seeing in the biggest casinos in macau. this is what caught the attention of a lot of people. the new casino has been built and is still awaiting regulatory permits and credentials to open. also, they're having issues with moody's and others. they were downgraded seven or

eight notches below investment grade. ramy: great stuff. super reporting, super interesting. good story. up next, janet yellen said that that is lifting its foot off the gas. we will look at what that means. this is bloomberg. ♪

[ engine revs ] [ screams ] [ shouting ] brace yourself! this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] tually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company. say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month.

call today. comcast business. built for business. shery: it is eight: 30 a.m. in singapore. a sunny but cloudy day. it is 27 degrees celsius. we are half an hour away from the open of trading. i am shery ahn in hong kong. in new am ramy inocencio york. let's get the first word news. >> toshibas tumbling in tokyo. reports are emerging that it is at odds with its auditor. it is questioning internal controls that toshibas bankrupt nuclear unit set.

the 2015 acquisition of the reactor construction company. toshiba has twice the late filing earnings. another postponement may affect listings. tohiba needs to sell assets cover enormous losses at westinghouse. the government wants the business to stay in japan, but the leading offers are coming in from abroad. the biggest bids are around $18 billion. are prepared to pay as much as $27 billion. the u.s. investigation into the alleged hacking into the presidential election has netted one of the world most notorious hackers. a russian was arrested in spain into theof hacking emails and bank accounts of thousands of american. directed cyber criminals in a scheme of

intelligence gathering. attention sparked by president not change the world cup. officials from the u.s., canada, and that go have lunch they join venture from 2026. it could launch more cash than any made in any previous tournament. be named inion will 2020. >> we have the full support of the united states government in this project. the president of the united states is fully supported and encourages us to have this joint bid. is especially pleased that mexico is part of this bid. that is in the last few days we have gotten further encouragement on that. shery: global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ shery: thank you.

it is time to get a check on how asian markets are shaping up. we saw broad dollar weakness overnight. right now the dollar index is unchanged. ands get to david ingles see how asian currencies are trading. david. david: the yen is stronger. gold, and oil are slightly higher. yields are down across the board. that is the markets story for the first few hours or so. the market story for the week, for currencies to watch. higher oil, the canadian dollar, and the norwegian currency. the aussie dollar will be one to watch as the market start to replace -- three price inflation. a closer look at the south korean currency. 200 day moving average. we are getting there. the south korean currency was

one of the better performing currencies. you can say it is being unwound at the moment. these are inflows and outflows out of the korean stock market. 140 million so far has been pulled out. i know those rates well. let's see if i can highlight that for you. give me a second. live tv. there we go. on your terminal. a lot inflows into march. so money has been taken out of that market. when you look at the relationship between the market close in the money flows, very big. the other thing i want to mention is we are starting to see -- we underpriced it. when you look at inflation expectations, australia might not come in in line or up to par with where they think it was going to be. this is the spread between the

u.s. 10 year and the aussie tenure. we might see the same yield at some point in time. that is the closest it has been since the u.s. elections which is this dip right here. .18. that is the point spread there. it goes back to 1970 the last time the u.s. and the australian 10 year have yielded the same, it was back in 1984. the yield has been narrowing since 2010. very interesting to watch. we start to think about where inflation really is relative to the u.s. ramy: over here in the u.s. we are going to take a look at what is happening at the federal reserve. janet yellen spoke earlier today. she said the friend is willing to have a gradual rate hike half

to make sure they did not give the economy too much flow. we have a wrapup of all of that. so all systems go for one rate hike? reporter: sure. when janet yellen spoken made it clear, she said three rate hikes. she was not ask any questions about the number of rate hikes. she has the full opportunity to lay the ground work where the fed is, where they're going, and why. gradual rate hikes is which is calling for. reasons ofe basic the fed led by janet yellen. unemployment is down to 4.5%. she said that might be too low. the fed has the start of the rate hike path, inflation is below its 2% target. she said the fed has to avoid falling behind the curve. it is not about slowing the

economy, it is about making sure it does not grow too fast. here's what she said. before we could press down on the gas pedal trying to get the economy all the gas we could, now allowing the economy to coast and remain on an even keel. give it some gas, but not so much that we are missing down hard on the accelerated, that is a better stance with monetary policy. reporter: she is saying, we are not tightening that much, we're just trying to make sure things don't get out of control. she was not asked about the balance sheet. clearly, fed officials have been signaling that improbably the second half of the year, the balance sheet will start producing by rolling off the proceeds of that $4.5 trillion portfolio.

no comments on that from janet yellen today. shery: there seems to be a disconnect between markets and the fed. traders seeing to rate hikes. the fed seeing three, why? another has been arguing for four rate hikes. definitely a disconnect. we spoke to the head of asia fix income at an investment firm. he said he thinks the discrepancy is from the traders and investors seeing balance sheet productions, which is a tightening as a substitute for rate hikes. that is one view. a lot of people are making that argument. another thing is inflation. and inflation expectations. asked, sheyellen was talked about inflation expectations as being one of those things. inflation expectations have started to pull back. let's jump into the bloomberg

and look at 7679 and you can see the white line, the two years have come down quite a bit. the yellow line is the 10 year 1.93evens, has fallen percentage points. the lowest close since mid-december. all of those signals going in that direction. janet yellen still on board with the gradual rate hike path. i don't think we got any new information from this. it was one hour and 15 minutes. this is theclear model for the fed now. she is the fed chair, she is laying it out. this is where they are heading and she was not see anything in their path right now. so much for you

that update. a programming note for you. director joinsg us at 6:30 a.m. in hong kong. that is 6:30 p.m. if you're watching in new york. ramy: both sides of the world can see that happening. is financial technology jumping on the artificial intelligence bandwagon. this is bloomberg. ♪

shery: this is "daybreak asia." in hong kong. ramy: i am ramy inocencio in new york. china is planning redistribution of agrochemical assets to another unit after a takeover of another company. allow disposals of

trust. the israeli chemical company is expected to raise its protection of products with better technology from china. shery: a $5 billion merger is said to create north america's largest long-haul trucker. it will help the companies by generating 150 million in cost savings by 2019. shares surged on the news. has secured ay $1.4 billion investment from ebay, tencent, and microsoft. ever investment in the indian site. to create aning stronger player to the with amazon. tech sector is

jumping in on the artificial intelligence bandwagon. the former apple ceo is getting in on the action. it provides interactive reports which allow customers to see how action such as applying for a credit card will affect their credit score. he told bloomberg technology before the company has plans to expand beyond the u.s. >> right now we are focused on the u.s. we have a number of bank partners. we will be in the market later this year. was our first release product. the thing that is exciting is that we made an acquisition of a very advanced machine learning company which is based on non-linear symbolic regression. this means that we are a white box solution. white box is different from the google the learning deep mines which are able to be champions.

no one knows how that search because it is black box. when you are in a regulated industry like consumer credit finance. the ability to have a human readable for audit purposes is incredibly important. we have a white box solution that we have adapted to be able to determine the risk of a loan for a lender. is based on the underwriting retired -- requirements of that specific consumer. what is interesting about the bank partnerships is that they have massive amounts of consumer data, that they are only using 1% or 2% at best. data,ther 98-99% of the we can start to harness that with our artificial intelligence machine learning technology. that is what i think will help change the way people think about alternative options and help educate people, which is a big deal for the consumer finance protection board. to have consumers be better educated and eliminate a lot of

consumer confusion about credit finance. is it hindering fin tech space in the u.s.? good terms with the consumer finance protection bureau. we -- they love the idea that we are educating consumers and giving full transparency. no one has been able to give this level of transparency before and been able to enable consumers to be in power with wellness tools that are open up all kinds of new options for them. it expands the credit possibilities by lowering costs of interest rates for many consumers, particularly on the larger ticket items. the way we are positioning for the market is not only going to be good for credit, but it is going to set a new bar for the whole consumer credit industry. heroes, you have credit report companies, this is a chance to be able to say, how

can we all work together and take it up to a whole new level. >> i couldn't have you on and not ask you about where you work previously, apple. is there optimism aplenty when you're looking at innovation levels that your previous company? think apple is having a great here. i think they will have a great three years because of the refresh cycle for the iphone 10 anniversary. it will be later in the yu-gi-oh -- year than some of us thought it was going to. it will probably be a spectacular product. apple is the iphone company these days. >> should it be more? you will see a lot of growth about innovation of services for the iphone. >> does it need more than on iphone? 50% over theis up last five months. at the market -- at the moment the market is saying it is doing a good job. scully theis john

former apple ceo. you can get a roundup of the stories you need to know to get your day going on today's edition of daybreak. mobilelso available on in the bloomberg anywhere app. you can also customize your setting so you only get your news that you care about. this is bloomberg. ♪

shery: this is "daybreak asia." in hong kong. ramy: quick check of business flash headlines. senior executives of deutsche bank stopped short of ramping up holdings during the capital increase. they bought shares to maintain their states. bank'sch a -- deutsche sale might help eliminate concerns about the banks financial strength. shery: directors were accused of disclosing false or misleading information about claims made in 2008. no wrongdoing was found. it was asked to determine whether any misconduct occurred on a single day, september 9,

2008. hong kong securities and future commissions is investigating the decision. ramy: chinese regulators will require coal miners to sell three quarters of their supplies to power producers and metal makers. the npr see is opposing the -- imposing the requirement. 90% in each contract must be delivered. comply willailed to face higher power costs. shery: a financial company backed by tencent may be close to raising $100 million. plans to complete the fundraising by june, the company is planning to use the money to set up on office in silicon valley. they expect to obtain a u.s. brokerage license next year. kong registered in hong and the app has 3.6 million users. is ramping up its engines. raising past general

motors to become the most viable carmaker in the united states. keenan has been following the stocks gains. what sparked this new milestone? su: higher and higher is the trend for the stock. last week we were talking about tesla exceeding the value of board. at that point, the owner in founder pointing out a tweet that taunted the other sellers. if we look at how the company has done, the stock has hurt short-sellers. this is a stock you do not want to short. look at the way the stock has performed. it is up above $300. it is up 40% in the past year. almost up 50%. that certainly has made elon musk a very rich man. his value is thought to be at 12.9 billion. he is now one of the 100 richest

man in the world. this is for a company that came out of nowhere in the past decade. electric cars were on top of 10 years ago. now, investors believing this is really the future. ramy: look at my bloomberg terminal. i want to show you the anr function. this is through the roof. this is analysts recommendations. look at the white line, that is the price of tesla. is followingne right behind it, it still has not reached it. the 12 month target is the yellow line. the buyers are creeping up right here. the green is representing the buys. was time he was up there may 20 9, 2016. so it was a whole year. in terms of what you are hearing in terms of investor demand or optimism or the data that is out

there, is this set to go even higher? su: i don't think many people want to bet against it now. there is a note out saying is this the ultimate growth? remember, yout to did the latest delivery numbers, but you go back several months and they missed their numbers. a lot of analysts were saying they were spending at alarming rates. for the short-sellers, those who backed on the price, it seems like this was i asked -- excellent opportunity to profit from a company that was going in the wrong direction. tesla proved them wrong. ramy: it is interesting whether elon musk can deliver on his pledge to get 500,000 cars by 2018 produced. he has come short on a lot of promises. this 500,000 mark, if he delivers it, it will be good.

but when you get to deliver that? su: there were so many stumbles off the top. people will point out this is a company that has stumbled forward, through all the battery issues and factory issues. they have only continued to rise if you look at the stock charts. thet of it has to do with eco-friendly tax credits. profiting from the fact that oil was $150 at the time. he was doing a lot of investor rounds and has a strong vision that has turned out to be a key factor for many, not just osborne spurs, but successful ceos. -- talent hit a target, but genius hits a target that nobody else can see. -- we keep comparing

tesla with other carmakers, but is it fair compared to gm and ford profits? you have to remember that wall street has look at tesla as technology company, as a electronic or battery company, not a traditional production the company. that you havems with the automakers unions did not exist for this more modern company. su keenan in new york. thank you for that update. that is almost it for us here on "daybreak asia." up's look at what is coming over the next few hours on bloomberg markets. looking at two big stories. conglomerate is

missing its forecast for 2016. also, it is not going to be buying a u.s. television maker. we are also looking at toshiba. will they come out with earnings? if they manage to do so, that would be great for them. don't, they can have a four-week further extension. if they don't do that, they have eight days to come up with the earnings are they face delisting from the regulators. that is what we have. ramy: talk to us about what guest you have coming up? rishad: we have somebody from manager, an asset talking about global markets.

haidi: advanced a.m. in hong and i'm:00 p.m. -- haidi lun. rishaad: i rishaad salamat, this is "bloomberg markets: asia." ♪ haidi: caution in the markets, investors watching political risk. toshiba among the losers of shares, as they sl