♪ haidi: u.s. stocks falling for a third day after lackluster retail sales raising concerns. betty: the disappointing data. and escalating risks. they: and you are hired, white house choice to replace gary cohn is seen as a trump team player.

haidi: hello from sydney where we are passed 9:00 a.m. and in australia we are in our away from the open. betty: and it is just after 6:00 p.m. on wednesday in new york and will look at all the action in wall street and how it will play in the asia-pacific trading day. some use expected and some unexpected. about larry kudlow taking over gary cohn, and retail sales numbers coming in surprisingly weak. showing that the economy looks unsteady here. haidi: what is a just think is it faster than expected inflation at faster rate hikes causing selloffs -- i don't know how to explain why we had this third day of losses of u.s. stocks on the back of a couple of data plans that chuck may be inflation and growth is looking

unsteady. maybe the fed has to be more dovish. we'll be talking about a lot of great guests at this hour. betty: blood happening this morning on "daybreak australia". andkstone chairman and ceo cofounder joining exclusively to discuss the geopolitical environment and how he sees business making a difference through his shorts men scholars program -- scholars program. haidi: and we have justin trudeau joining us live to discuss the latest on nafta negotiations and exemptions of our steel and aluminum and trading with the united states. that is in a little over a half hour time. betty: and more great guests coming out. on the back of latest earnings and suppressed profits in the second half of 2017.

let's get a closer look at u.s. market sessions with stocks declining for a third straight day and a divided focus. concerned --s are sales concerning spending and the countdown to that meeting -- the latest in sydney, it is a difficult time for the markets. unlike yesterday when you had reaction to the firing of the secretary of state and the squashing of a big tech deal -- overriding concerns. let's look at the market snapshot and what you see with the dollar having weakness on the weaker retail sales. once were steady but look at the red and the s&p and dow, down a

full percent. if you look at the big movers, sizable moves on earnings. harley davidson going all in on electric bikes. investors made the thinking it is not the way to turn around the company. newer generation kids not buying motorcycles like the old motorcycle lovers you see, with leather jackets, an older crowd. and facinglers competition from rivals. twitter coming out with good news and analysts saying there clean financials make them a m&a target. if's look at the bloomberg you want to follow along at home -- cross asset challenges the title of this and it shows that the treasury yield gap in the s&p 500 is turning into an obstacle for stocks.

notice the white line is the bond yield and is reaching the point in which bonds can challenge stock returns. the money manager at rent capital believes the 10 year notes and the dividend yields in the s&p 500 index is going to maybe make a rivalry, pulling investors away from stocks. another concern in terms of the rise of stocks going forward. lesty: and the week sa data is a driver. thethat is an example of mixed signals we are getting and what we had if you look at the big retail stocks, big drops across the board. some of the more troubled retailers like jcpenney took the biggest drops. we had five and 7% drops in the stocks and data showed retail

sales unexpectedly dropped in february even as also prices increased. yet inflation data, which again was a positive, many have weaker retail data that raises question arcs for many investors. -- raises question marks for many investors. what is fascinating about sears is in after hours trading it --ned around and is up 17% the sales not so good but the u.s. tax overall news they reported has investors excited. a big win for tax overhaul for short-term gains, but long-term sales challenge for the company. thank you for that. in asian open and trading new zealand underway -- gains picked up in the fourth quarter

to the tune of 3.1% year on year and expecting a lift there. thetocks -- 10 is where kiwi dollar is trading in the u.s. $ the lower the overnight session and the yen picking up gains as we had to the tokyo open. in australia, going into the open in sydney this thursday, we bleak feature of regional equities, lower. and let's get over to commodities as oil is one of the biggest stories for the markets overnight. the opec report seems to balance stronger demand, but opec is a knology the threat of u.s. shall --ing back into the markets opec is acknowledging the fed of

u.s. shell coming back. betty: we have breaking news right now on the online travel agency and china coming out with earnings reports. fourth quarter revenue coming at over 900 million u.s. dollars that is under the estimates of a billion dollars. revenue softer, up 9% from the me, fromrter -- excuse nine to 11% growth, that is the range for the first quarter. the revenue coming less than expected, and earnings for adjusted share also missing estimates. now to first world news with alisa parenti in washington. mentioned, was kudlowaphed, and larry loo

is expected to provide familiarity and support to the president as he removed moderating and dissenting voices from his administration and also served as an advisor to president reagan. the european union is questioned the rationale behind president trump's trade tariffs saying it will undermine transatlantic ties. cecilio melson says it will seek an exemption and also prepare countermeasures. ecb president mario draghi said potential trade war with the u.s. poses more risks and uncertainties to the recovery of the eu economy. >> there are potential second round of facts that could have serious consequences. these include the risk of retaliation across other goods, and an escalation of trade sanctions and the potential for negative confidence of facts, which would weigh on business investment in particular. alisa: russia says the expulsion

of -- them see responded after london aimed moscow for the nerve agent attack on former spy and his daughter. the biggest explosion is the biggest since the cold war and the u.k. has also cut high-level contacts. the embassy says it holds london responsible for the deterioration of that relationship. it is official, finland is the happiest place in the world. based on factors including life expectancy, social support programs, and corruption. scandinavia has dominated the list since it launched. places toalls for 18th in this year's list, which is the first to survey immigrants. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am alisa parenti and this is

bloomberg. betty: our next guest is described as one of the last remaining free trade advocates and a direct link to president china's lling cap -- calling him china's trump whisperer. he runs the schwartzman scholars program and we haven't chosen interview with them. it has been a wild. hile. i want to talk about the scholars program because there is new slightly of more than 2700 applicants in your current class of 2018. are you happy in the last three years of how this program has developed? the program actually has 4000 applicants for this year. 142 students -- it is one of the most selective by far programs

in the world. gettingamazing students a masters degree in beijing. it has turned into even more. betty: than you thought it would be? steve: i have a good imagination. betty: you have big goals when you do something. steve: we try. from 29he students come countries plus, what are the major issues they want to tackle given what is going on right now in the global environment? steve: we ask them to come because they are future leaders. not because we make them, they already are. they have a global perspective and they have areas of expertise, whether it is business economics area or public policy, foreign relations.

what they are trying to do is have a good life and learn about china, because of china's enormous importance to the world. the largest country in terms of population, second-largest economy, and we give them a chance to have mentors from the real world and their areas of interest. we take them on trips around china, they work for a little either in an issue, ngo or company or ministry. and they get to live and work with each other. betty: have you seen things that are different now than when you started the program? issues they want to tackle? steve: the program is going to be three years old and it runs from the environment. we have a number of people from around the world who want to be presidents of their countries. this is part of learning.

we have people who want to be famous businesspeople. everybody wants to make their mark as an individual, but leave something important for society. we started this to try to make the world safer, because what one finds is when you have a and anger like china, incumbent power like the u.s. -- three quarters of the time in the last 500 years yet that kind of scenario. you had wars between those two countries, and what could be worse? part of the schwarzman scholars is to be ambassadors when they go back to their own countries. 20% from5% americans, china, and 35% from the rest of the world. betty: you consider yourself a china whisperer? steve: no, i am a hard-working

guy, and i don't whisper much. [laughter] time, in some of my spare to make sure things work as well as they can. this is a luxury you have when you are older and you know more people. it is effortless. betty: you have quite a bit of influence and we have seen the relationship you have developed with the president. you are on his strategic forum. to beeople consider you perhaps one of the if not the u.s. executive that has the most understanding or do this relationship between the u.s. and china. i am curious seeing what you are seeing now, just trump coming out with more tariffs on china. he is surrounding himself with people who are -- we see china as a threat than a friend.

what do you want to say to the president? have you talked to him recently about these moves? steve: i am not going to tell you and your vast audience. [laughter] exactly what i am saying to anybody in particular. betty: are you disappointed? steve: there is no doubt there is a serious imbalance between the u.s. and china in terms of market access and tariff levels and nontariff barriers and investment limitations. part of this happens in the natural course of things. when you are a less-developed country, then you have higher tariff laws, but we did that in the u.s. in the 19th century and it helped tilt the united states behind the protection of those restrictions. the issue now is with china having such a large economy,

even though per capita it is not -- butas one would think in terms of aggregate size, is the second biggest in the world and is growing at double the rate of any developed economy. change,me to make that make that transition. i think the senior people in china well understand that, because it is in their interest as well as other countries interests. if you don't normalize this, then popular is some develops and developed world and people in those populations demand some kind of action. betty: and its rings all the way back to the other side. steve: and everybody is a loser. betty: if i can infer from what

you are saying, there could be some justification for these tariffs here to make it a more level playing field, or no? steve: i didn't talk about tariffs, but what i am saying is you need a normalization of access between countries. it is called fair trade, in other words no one country should keep anybody else know more out while they get to go and. it is not fair. betty: so you need a level playing field? steve: you need a level playing field and the best products. that is all it is trying to be accomplished -- this will take some period of time. responsible and intelligent people note this is something that is going to have to be done. orderlyd be done in an and thoughtful way. i am hopeful that would be the case. this: not to belabor

point, but what other levers could be pulled to level this playing field between the two countries? steve: there are lots of levers to get somebody's attention. that attention has been gotten. anshould be moving on to execution phase, which would be good for everyone. betty: are you still bullish on china? steve: i think the chinese are highly unusual. no one in history has ever gone at this rate since the normalization of china around 1980. --has gone from just about like global gdp, something 14.

it is amazing. the growth rates are high, the people are adaptable. they don't mind working very hard for very long, and there is win.l to win -- will to we saw with what president xi and unlimited term he has been given. the right move for china in your view? steve: that is up to the chinese and out for outsiders. we see ack in the u.s. cabinet reshuffling in the last week or so to put it mildly. larry kudlow taking over from gary cohn. i know you know larry -- is that a step in the right direction in your view? steve: i have known larry since 1972. which means where both older than dirt. [laughter] betty: it means you have a lot of experience and have seen a

lot. [laughter] steve: thank you for interpreting it that way. larry is thoughtful and as you know from watching him a bit on tv, he is not shy. a corner at said in someplace and have people run over him because they find it amusing -- i don't think that is the way this will play. play anlarry will important role. as to gary, he did play an thertant role and they got tax bill done with gary's help and steve mnuchin and other people in the administration. betty: this was going to be the administration where the ceos are going to come and show how the government could be run more efficiently. mnuchinerson, steve there are still, gary, and little by little these ceos have

dropped off. what does that say to you? steve: you could say that there tosome people who can adapt a government role and government pace, government levels of coordination. i think there is some issues of personality fit. betty: culture? steve: when you assemble a group of strangers, a lot of people that you mentioned were not well known to the person who hired them. living firstlike a date when you get married. betty: like a blind date? steve: some of these were like blind dates. eachliterally had not met other and you start on an adventure like that -- it is not easy. rex, he is a very

good person and he is a distinguished guy. he is smart and he is experienced in the world. the fit between the two individuals didn't fit. he briefs theeo, president every day. date,s not like a first so these two guys get along. he knows his craft, he is well-liked, and he is experienced. sometimes when you make changes, change is always shocking because people get used to the world as it is. on the other hand, i think the two people who have come in our qualified and strong. betty: so you are confident?

steve: we will go on the next adventure, if you will. betty: that is a good way to put it. if you look at the turn in the white house and the issues of the day in washington, this make you -- does it give you any positive terms of the point capital or where you deploy capital? steve: not really. one thing that is forgotten when we turn to this hubbub of what is going on in washington is the basic economy is doing really well. the consumer confidence and business confidence, there are records. we have 800,000 people who came back into the workforce. labor is getting tight. betty: retail sales were shaky

this morning. steve: no set of measures works every time you measure them. we are going to have growth, i am pretty sure, in the threes, which people said was impossible. when you reduce relation to the extent you believe some of the regulations were creating a lot of friction and give people the confidence to go ahead because there is predictability. they are not going to be attacked for just doing their jobs. good things will happen in that kind of level. that alone the policy changes that were introduced that will stimulate the economy and give it another like. betty: heidi has a question for you. haidi: i wanted to ask you to clarify this exit by china's sovereign fund from australian

holdings. what indications would have to your operations in asia and china? can you give some context to the position? steve: this is the cic issue? haidi: that's right. stock in theought firm in 2007 and asked for a theyyear period, after wanted the ability to exit. it is close to 11 years, and i think it is surprising to them and to us that they cap their investment that long. they are terrific partners with us. we do a lot of other things with them with enormous success. and will continue to be

come as far as everything i know, a very long-term, productive register. in fact -- productive relationship. we started with them they had to employees and we help them with their internal systems and if researcher and all kinds of things. we know virtually just about everybody there. we have somebody from our firm talking to there's every day. it has been a very productive relationship on a mutual basis. betty: steve, great to have you and thank you for stopping by. thank you so much. will have justin trudeau on in 10 minutes. confronting canada's challenges, tariffslk trump coming up. this is bloomberg.

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haidi: it is 9:30 a.m. in sydney -- preachers looking a little lackluster had an equally lackluster session on wall street. digesting continued political headlines and weaker retail sales numbers. i am haidi lun in sydney. betty: and i am betty lou and it is 6:30 p.m. here in new york. angela merkel is starting her for term as german chancellor and brings an end to six months of political drift halloween and inconclusive

election -- following an inconclusive election. the centerleft has 299 of the 709 seats in the one the stock. the tesla had to give up the finance economy and foreign ministries former government. democrat conor lamb and republican rick saccone are still locked in a race that is too close to call for a seat in pennsylvania. lamb claimed victory after holding a lead of six and 27 votes that sought 2020 8000 ballots cast. sequoia is not conceding and the gop may challenge the vote. china securities regulator has hit if i'm taylor just this from a belated the stock market. group used a team of traders with more than 300 different accounts to me blake share

prices last year. the penalty is almost six times as much as the company aren't those illegal actions. u.s. agents are said to have casino office operator. the company says it knows nothing about the claim rate and denies any wrongdoing. imperial pacific has attracted attention for the ship amount of money recorded at its saipan casino that is far larger than the grandest resorts in macau. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. parenti, and this is bloomberg. haidi: thank you so much for that. a quick update on markets with new zealand reacted that gdp number, and will have more details in just a moment. extending losses with the new zealand dollar -- a touch weaker

there as well when it comes to the kiwi. setting up for the open in australia as we saw a few moments ago, it is looking in little week as we head into the citi open. three sessions of losses -- weaker sales numbers adding to the weaker inflation. at .70sie dollar trading 873. as ahead to the tokyo open it is going to potentially create a little pressure as we head towards that market opening. sterling at 13961 and the u.s. 10 year yield holding up at 2.82. not just weakness across edger indices but volume is 10% lower in the moving average as traders start to pair their bets going into next week's fed decision. the kiwi dollar is dipping the

let's quarter -- and begin with today's numbers, joining us now from wellington, tracy, what is the immediate outlook given the numbers we have this morning? forecasts is, the off by a couple of points. driving growth's services, retail spending, those are -- we had a lot of tourists coming to the busiest summer season and there was a surprise with where we are heading. more than analysts expected. overall annual growth at 2.9% for the year is the eighth year in a row that economy has expanded and is going at a solid pace. looking ahead, the treasuries are pace this year, the first half might be a little slower.

business confidence fell after the september election and make companies reluctant to spend. i think the economy will come through for sure. betty: is the reserve bank in new zealand concerned with the state of expansion? near-term i would not think so. inflation is benign and well below the 2% midpoint of the reserve bank of new zealand targets. the bank itself stated in february that it doesn't see rates rising until mid-next year. we have an update from them next week and the message is likely to be the same. term, is wheree to put pressure on capacity and could feel a bit of inflation pressure, but alex at a story for 2019. betty: tracy, thank you so much.

an ongoing story there in new zealand. and what we should be looking at the markets -- adam haigh, we know the boj has been swallowing a lot of bonds in japan, and you look at the killing of trade of bonds in japan. what happened? wake has been a remarkable in japan and from what we heard from kuroda is that in the fiscal year coming in and -- the boj has swallowed up 75% of the issuance, which is staggering. it was amplified on tuesday. we saw no trading at all of tenure japanese government bonds on tuesday. it shows the example of what is happening in the bond market there. terminalcan see in the on this chart, it shows the

trajectory of the declines that we have seen in volumes on the bond market in japan. this is largely to do with the massive asset purchases the bank of japan have been doing for years and we will certainly and you to see more under kuroda's second term of this monetary policy construing and japan despite some noises been made that we might get into conversations around when they start the exit that policy. for now the bank of japan continuing to buy all the bonds they can get its hands on. month from the turmoil, what are the stress levels of these gauges? >> it is a crazy six weeks in the market. a lot changed, and one great indicator we are seeing in the options market and equity derivatives market, if we look into the terminal -- this is

happening on the volatility vix. we have come off that spike in early february levels and earlier this week we had lows that basically take us back to where we were in january. you have picked up a little bit the last two days after three days of declines in the s&p 500, that is one key indicator. you can see other market stress levels in emerging markets, currency for example is back to levels we saw at the start of january. you can also see it in the church you market where we establish that new range and this that 3% level on the tenure and sitting around 2.8% on the wednesday close. we are establishing a new range so there's certainly a resemblance of returning to the market. haidi: thank you so much adam haigh.

pimco is cutting investments in australian that as risks escalate. the is spooking one of world's biggest managers? >> corporate bonds have been going gangbusters over the past 10 years and aussie bonds have done very well. bonds areaying these getting incredibly expensive and it is time to unwind some of their oppositions and these investments. this comes at a time when australians are highly leveraged thanks to a very expensive housing market and there is little buffer for volatility. betty: are other fund managers doing the same thing this out aussie corporate bonds? ruth: some definitely are. that therenager said will be isolated blowup in the market and they are actively

hunting right now for shorting opportunities. particularly for highly leveraged real estate companies and investment trusts. that is definitely a pocket they are looking to short. when is an opportunity to buy are at to these long positions in the aussie bond market? ruth: there are definitely opportunities and it is not all doom and gloom. infrastructure debts, bonsall by energy companies come at are sectors that the family drop pimco's attention at this point in time. a company that has been slashing that's and really wrapping up their balance sheet properly -- the sector draws pimco's attention. betty: ruth, thank you so much. don't forget you can find in the analysis on bloomberg radio and tune in to daybreak asia at 7:00

a.m. hong kong time. axithis is bloomberg. ♪

betty: some breaking news right now, this is expected outcome of the u.s. senate passing the bill to roll back portions of the dodd-frank law. a subject of much debate on the senate floor and expected to pass in the senate and it has. the vote is going to be sent to the house, and there is a questions if they can survive a house vote. rolling back portions of dodd-frank loss, particularly that hurt small banks and that the reason for doing this, or didn't buy lots of regulation and the reason why lawmakers said some of the portions of this regulations are harsh and you to be rolled back. passing the senate this evening. haidi: let's head over to canada

now stocks rising for a fifth day and positive numbers out of china. canadian miners correlate that relationship -- and markets are ties for more than two weeks and the loonie recovered from tuesday's the and prime minister justin trudeau remains confident that the nafta negotiations will reach a positive accord. our international correspondent mike mckee is that the prime minister. mike. much, and wevery welcome justin trudeau to bloomberg television and radio worldwide. but you for joining us. we are in a steel mill and you can hear it as well as you travel canada we assured workers that their jobs are safer now from the trump tariffs on the aluminum and steel. we are also hearing uncertainty is hurting the economy and canada already. companies are telling us because they don't know what is what happened with tariffs and what

is what happened with nafta they don't want to invest right now. this story: part of is really showing that tens of thousands of steel and aluminum workers across our country that we are working hard for them and onhave secured the exemption 232 because quite frankly, it makes sense. you can say canada is a national security risk to the united states. we are so partnered on so many different issues, and the level of complex integration of our supply chain on steel and aluminum means tariffs to canada would be harmful to americans as well. we make the argument and we continue to work on nafta and i am optimistic will get to a win win win. mike: how much does it hurt but you have to wait and uncertainty is out there? mr. trudeau: we have done so many things about innovation and immigration, canada is a very good place to invest for the long term. we have long-term stability on

social,omy, politics, immigration, and it is a factor in our diversity. yes there is a couple of people saying what is going to happen with nafta? but i am confident we'll get to the right place with nafta. it is an achievable when with nafta -- win. you talk to the president of united states several times, his new economic advisor said you are on the phone with the president making concessions hand over fist. is that correct? i amrudeau: canadians know consistent and standing up for canadian interest. that is what they elect me to do and that is exactly what i am doing. getting an exemption on steel and aluminum, we are continuing to stand up for ourselves in a nested table because we don't

getting a good deal for canada ultimately makes a good deal for the ad states and mexico. i am not switching on that. mike: you're not giving up on anything at this point? mr. trudeau: i want to negotiate in public. mike: mexico's chief negotiator said today that half of nafta could be done at a time the meetings wrap up. is that enough to keep them going? when the counter intervenes, will you suspend talks and say with constant enough to keep it going perhaps until after the u.s. midterms? mr. trudeau: can it have the same types of measures that the u.s. and mexico have. we are happy to make progress and we are diligent about doing our homework and showing up and making sure we are delivering creative ideas and forward movement at the table. i understand the time pressures our partners are under and were happy to x-ray to accommodate them. canada is also creating

temperatures on the table and we continue to work at whatever the others want. suspendedalks were will that affect as far as you understand the two threw two exemption?- 232 mr. trudeau: we have a nafta now and we will have a nafta once we improve it and we are pretty good on not getting tariffs. will have aid we nafta and you are upbeat of the possibilities, by have to ask you been all the conversation people have had and all the talk from washington, why? mr. trudeau: nafta has been good for the united states and canada and mexico. as been good for the past 25 years and is always opportunities to improve it. andlevel of collaboration coordination and integration of our economies has positioned us and america to better take on the world. i know there is a greater opportunity for that. canada is a trading nation and

we sent trade deals with european union -- with asian economies. canada knows how did trade can be to create growth. we need to do a better job of ensuring everyone gets the benefit from the growth, and that is very much like we are being thoughtful and progressive in some of the ways we are running forward on labor standards and women's rights and things will make sure that globalization are delayed by demonstrating that it goes to benefit everyone. mike: another day and another duty, this time -- with the stock to have against canada? it seems to be he is governing against canada? is soudeau: canada president so many different areas of the american economy in so many positive ways. the assets sells markets to canada and other countries combined.

protectionist approach, and there are certain companies we decided to try to see if they can take a profit off of pushing back against competitors, some of whom are in canada. and a it with boeing, virtually what boeing did drove a great canadian into the arms of the competitor and we have a great relationship with airbus. so does that will backfire with companies that challenge canada and will highlight in this case is what the result in higher costs for american consumers. the same way it looked to higher housing prices because canadian lumber is more expensive for wholesalers and united states. we try to make these arguments and continue to make these are humans in a firm and polite way as we are canadian. [laughter] mike: the next target from the trumpeter's vision is china, intellectual property theft sanctions is coming.

too?china cheap canada mr. trudeau: this is something we are also concerned about we bought in significant measures to ensure that we are protecting the integrity of our market and country and will continue to do that. this and that we have concerns a lot of other countries have around the chinese -- and at the same time we know that trade with china is a growing opportunity and a booming economy. getting that right requires a little bit of careful balancing. and we are doing well. mike: would you join and international effort to put sanctions on china? mr. trudeau: we're going to look at how various people like at the challenges out there and will do the responsible thing for canadians. mike: this is the home of the

1933 regina festival. hereou seeing a populist to say we saw in the u.k. and the u.s.? mr. trudeau: the division and fear and anger -- the choice we made is -- in the last election for canadians was optimistic and putting people together and working hard and not pinning regions against regions. there is always going to be an opportunity to highlight divisions, but in general canadians have chosen to push that aside and work together and am hoping to continue that. mike: speaking of moving towards asia, some suggest you had a rough time in your trips to asia recently and you need to recalibrate your foreign policy towards the far east. are you doing that? mr. trudeau: were these to sign to be awhich is going

tremendous advantage for canada as we open new markets in asia that will benefit us. we have agreements with india, which is an issue we needed to settle for our firms this year. we're moving in constructive ways in china and will continue to work hard and look for opportunities for canadians to benefit in asia and elsewhere around the world. mike: one last question about donald trump. he says a lot of things and do something different. on immigration, on still most recently. when you talk to him and he says he's going to do something, why do believe them? why do you trust him? mr. trudeau: my experience with him -- we were in sicily and we talked about 232 and the concerns we had, and he said that canada will be exempt and will not apply national security penalties to canada. there was a lot of

reflection back and forth but he ended up following through exactly as he said. in terms of commitment he has set the conversations we have had about things that matter, he has been consistent with me. i will say that when he makes an engagement to me he has followed up on it and will continue that way. mike: canadian prime minister justin trudeau, thank you so much for joining us on bloomberg. mike. thank you so much, that was justin trudeau saying he has a good relationship with the president and he sticks by his work according to him. function tv and diving to any securities and bloomberg functions we talk about and become part of the conversation i sending us instant messages during our shows. this is for subscribers only. this is bloomberg. ♪

haidi: that does it for "daybreak australia" this morning and yvonne and betty are next with daybreak asia and has already been quite an hour in terms of strong conversations. betty: some great interviews and a half hour and will continue to "daybreak asia". next was of interview, the first television interview he has given since he took office 10 months ago, and he is coming on the back of a really robust earnings report. the last have 2017. and also some smack chairman tim parker is joining us as well on their earnings report. joining us to talk about markets, a lot more ahead.

stay glued to the television. haidi: absolutely. that is it for "daybreak australia". ♪ mom you called?

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♪ yvonne: 7:00 a.m. here in hong kong. bloomberg'sfrom asian headquarters. i am yvonne man. welcome to "daybreak asia." tepid u.s. retail sales stoke fears that consumer sentiment is cooling. opec changes its tune on a supply, saying production from rivals will top growth demand this year. betty: from bloomberg's global headquarters i am betty liu in new york. blackstone says that u.s.-china trade imbalances must be equalized. we have our interview with ceo of