♪ u.s. stocks close with consumer andsses energy and the s&p fell for the fourth day in a row. betty: investors are now waiting for fed. haidi: asterisk's largest building firm is getting on the booming middle class, asia is the story of the generation. betty: and reports from new york say robert mueller has been at the trump organization or documents related to russia. haidi: it is a happy friday in

sydney and it is just past 9:00 a.m. 6:00 p.m.is just past in new york and over the next hour we are looking at all the action in wall street and how it will play in the asia-pacific trading day. you mentioned the markets are mixed but the s&p fell for a fourth day in a row. a quick check of how the indexes ended on this thursday. you can see the s&p closing a touch lower and the dow gaining, and the nasdaq also lower and looking tired here with tech stocks down at 2/10 of 1%. we also mentioned moments ago that investors are looking ahead ooks, and jay powell is coming out with his first as conference to the public. nervous in terms

of what kind of fed chair jay powell is going to be. a lot of nervousness, if you go by volumes see almost 20% lows in the s&p in previous sessions and clearly a lot of people sticking by the sidelines going into next week. let's look at how we are setting up in asia. we are seeing trading underway in asia and it is looking pretty mixed. when it comes to new zealand we australiaeatures in looking mixed when it comes to how we are setting up for the australian and japanese sessions. let's head over to commodities. we had this economic advisor saying you should buy the dollar and some gold and we saw gold see its biggest decline in a week. expectations that may be a

stronger u.s. production will balance out the picture when it shell.o u.s. let's get to first world news with jessica summers. >> people were killed when a pedestrian walkway collapsed at florida international university. emergency services say a people -- eight people were killed. it wait 950 tons and was installed on saturday. meanwhile bloomberg has been told the u.k. has significant work to do on the irish border before next week's summit. all parties are keen to reach a deal. eu is notsay if the satisfied with british proposals for avoiding a hard border between northern ireland and the republic, they might attach more conditions towards an agreement.

kaiser us has confirmed they are going out of business after rescue efforts failed. the collapse could shutdown stores britain jobs at toys "r" us. holiday sales disappointed in the company missed payments to suppliers in recent days. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. betty: let's get back to that mixed session on wall street. the dollar rising and gold seeking after white house appointee as a tough stance on china. breaking down the mood of the market is su keenan -- looking ahead to the fed. su: the latest economic data out today supports rate hikes and concerned about the probe into

russian influence getting closer to the president himself. check out the market snapshot. weighing a mixed outlook on the trajectory of the fed rate hike. what you also see if you look at the big movers is some significant moves. snapchat one of the big decliners down as much as 5% with popstar rihanna criticizing a game on the idea of would you rather, the question is would you rather slap her or punch her former boyfriend. she put out a note on instagram that i would love to call it ignorance but i know you ain't that dumb. that was her quote. and financial entities that hold pipelines will not get help from tax reform and will lose tax

allowance and that is why the stocks are down across the board 70%. 17%. we heard haidi talk about analysts saying it is time to buy the dollar, and this chart shows there is signs of investors remaining hot for the dollar. people are rushing the japanese and european stocks without the hedge and money managers pulled billion, the money is going into exchange traded funds in tokyo and it fluctuates towards the yen moving towards unhedged funds. it tells you the dollar is a bit unloved right now. let's take a closer look at the car wars. and a walmart employee was fired about its conduct with its work

against amazon. amazing story and then online executive who alleges its war against amazon that walmart retailer executives pushed the line a bit. he reported misdeeds and he was fired as a result according to his allegations -- they were cutting back payments to vendors and a lot of questionable items online and doing other things to get their online sales up. was well above 50% going into leicester but more recently reported a slowdown in the online sales. the rush to win e-commerce at any cost has apparently cost the company if you listen to the whistleblower. a lot more to come on this and the stock was down and rebounded towards the end of the day. let's talk about ford. the various car companies have been under pressure, but ford has said that it will take on the toyota hybrid wants to

become the u.s. hybrid king by 2021 and is going to take a shot at fire at chrysler -- fiat chrysler and we'll see how that works out. ford was punished by investors and consumers alike in recent months. haidi: thank you so much for that look at the markets. and with politics engulfing sentiment with the new york times report saying special counsel robert mueller has subpoenaed the trump organization to turn over documents including those related to russia. joining us is our white house does a suggest that the investigation is getting closer to the president? it suggest they are looking at the president and it particularly suggest that mother is now examining potential financial dealings that the president had with foreign entities that is an avenue day are clearly exploring and

adding theseucking documents. haidi: and the sections look to russian organizations and to some individuals and connection to meddling in the election, what kind of impact will it have and did this come under significant pressure? courtney: the president -- in fact, congress with the bipartisan majority last summer asked legislation to press for more sanctions on the election-meddling.. treasurying the u.s. issued financial sanctions against all the people that mueller had indicted for interfering in the u.s. elections. the symbolic because a lot of people had already been sanctioned. it is at least a step that is in the right direction as far as members of congress are concerned. how are the sanctions

being received in congress? mike: he saw public statements for members of congress want me them but with the caveat that they were overdue. the republican speaker of the house is a close ally of the president. and many prominent members of congress were encouraging them to go further. much, mike, thank you so our bloomberg white house deputy team leader with the latest in washington and that mueller probe. the citi open of mining retailing conglomerate will spin off its australian supermarket chain, kohl's. why is west farmers doing this? west farmers about a statement saying is going to reposition its portfolio targets businesses with strong growth prospects. where does that leave coles?

west farmers took over that in 2000 seven, and it is the mature cash generating business. it puts the focus on strong growth prospects anymore and is responsible for a third of the west farmers group earnings, saying it should be owned and operated separately. the company says once it is listed on its own to expected to be a top 30 asx company. haidi: they are still to be a stake? paul: up to 20% to support alignment with the rest of their business and there's a lot of other retail businesses like kmart and office works as well. if it jumps through approval through shareholders and regulators, then shareholders are going to get shares and coles proportionate to their current wesfarmers holdings.

a real shakeup there. what is the outlook of the supermarket in australia? and: hugely competitive every few months we get sales updates from major retailers and behind in manyg respects and there are other competitors as well like the low cost chain, aldi. it is a tough will be interesting to see how it plays out. haidi: thank you so much for that, paul allen. the trade war with china and the technology sector and we get a risk assessment with gbh. p next, larry kudlow's arrival in the white house. this is bloomberg. ♪

betty: we are counting down to the sydney open and equity futures are going to a slightly higher open than expected with a mixed session in the u.s., up about two dents of 1% on this friday morning. and i am betty lou in new york. haidi: and you are watching "daybreak australia". protectionism of the white house economic adviser -- larry cut the appears to show support for a stronger dollar and a tougher stance on china. for more we are joined from the chief investment officer. great to have you on "daybreak australia". there's too cap's newmarket, those who believe that headlines over protectionism and potential of trade war are overblown to comes to how much it will impact growth in the markets and those who think that in terms of not paying enough attention. which had you fall into?

>> i fall into the cap that we have to wait and see. the markets do not like uncertainty and that is what we have right now. that throughout the uncertainty and ultimately this pullback that i think is not done in the u.s. markets, i think we're going to continue to seek declining prices. i do not believe this is the start of a prolonged secular bear market. i think this is also rotation and rotation and volatility means an excuse. what we see is a headline that is giving us an excuse to see some much-needed rotation. to answer your question, i think we'll see further weakness but ultimately it results in a great buying opportunity. haidi: what is the take away of your impression of going from gary cohn to larry kudlow? youle in the markets desk think it is going to be a

benefit to signal uncertainty or more noise in addition to trump's tweets and all the other going on in the white house? quint: i think it is bullish regarding markets. kudlow is in alignment with the trump sort of mantra. he is a pro deficit fan and is all about growth. i think today's statement regarding the strong dollar and the subsequent decline we saw in gold is contrary to his overall economic position. i believe there is an opportunity and that, believe it or not. i think ultimately with more people in this administration favoring growth and is not afraid of deficits, that is actually bearish for the dollar and i think that ultimately the drop in gold that we have been seeing here in the last 24 hours is presenting a good opportunity. betty: speaking of the dollar,

what the bullet this chart. larry kudlow can say anything he wants about the dollar but the dollar is down, not up. if you look at the political risk index are presented in white, as it climbs there is an inverse correlation with the dollar spot index as it continues to fall. it might be a dollar trajectory of the white house is on making. you have investors fleeing the dollar. d.c. any change in that? quint: i really don't. anyone day reversal because of headlines we saw today is just that, a one-day thing. is that going to change the overall trend. the investors have to understand what we are seeing here in the u.s. is inflationary. everything from organic growth to tariffs talked to trade war talks, you name it, it is all rooted in inflation.

these pullbacks and gold are buying opportunities or pullbacks in materials for example. i agree that the dollar is declining and continues to do so. asty: speaking of inflation, we seek short-term risk move higher and see that yield curve possibly flatten some more, you have got a lot of market indicators or prosecutors saying we are looking at a recession. these are the jpmorgan report today saint there is 72% chance of a recession -- saying there is a 72% chance of recession. kristai wish i had to bought that they appear to do because i do know how anyone can predict that with work unemployment and gdp where it as. i believe the fed is behind the curve and if they are looking at raw material are prices and commodity prices were the last 18 months, they would have

already been raising fairly aggressively. i think they are looking at wage growth and which will only and is giving them a delayed sort of response to where inflation is. i think is going to take a wild for the inflation that we have seen in these ramin trailer prices to work through the system. it iso mistake about it, here and it is coming and the fed is behind. that being said, i think we are a long way from recession. i think we have growth in this country and wants headline risk comes that we are going to go back to the discussion of infrastructure the sheet and infrastructure bill in this country. not only is that can economically and great for markets but also is inflationary as well. positioningis your when it comes to markets like japan and china? you singled out as being more attractive valuations wise compared to u.s. stocks. quint: i like china. etfre owners of fx i the

chinese 25 come and shanghai's selling currently at 18 multiple, which is very inexpensive compared to where it has been historically. also in comparison to u.s. markets trading around 25 times earnings. i do believe that there is opportunity. and $11 trillion economy growing at 6% is amazing, regardless of work was. somebody saying china is slowing down, it is still growing at 6% and attractively valued. within these headlines, i think global investors need to see where the growth is by the pullbacks. that is what we are seeing here. throughout this volatility that is headline risk driven, it is going to great opportunities. i prefer china over japan because we are natural of the economic growth that is transpiring there. quint, we appreciate

your time. you can get of roundup of the stories you need to know in today's addition of daybreak to daybcribers can go on their terminals. mobileailable on the with the bloomberg anywhere app. the news on the industries and assets you care about. this is bloomberg. ♪

i am haidi lun in sydney. betty: and you are watching "daybreak australia". president trump but the combustion on qualcomm and this some good news for once. this american that the firm -- the semi conductor firm week estimates. heading on over to the united

states in two or three weeks time, breaking a cross the board here in terms of eps coming in at 505 and for revenue, it came in line with estimates, and there was even surprised investor dividend. dividend.hare let'sll that good news, go into the bloomberg terminal because i want to show you share price action. you think it would be up, but it is down 1.6% right now. the thinking here is possibly because of second-quarter guidance. off is a fraction of a bit from the $5 billion expected, but a lot of folks expected more. the question here is what is going to happen with ceo as he moves the company domicile to

the u.s. hite housethe weis try to get the bid in for qualcomm, and on the earnings call in the past hour or so, the ball come cfo said qualcomm was a unique opportunity but sees potential candidates of other acquisitions. you have beenout, warned that you may be a target there. i want to take you to through three uber charts. bloomberg charts. 40% year on year for the first quarter here -- we saw a bump in terms of eps for share. the number is coming in at five dollars and $.12 a share versus 3.63 a share your on your, a rebound of third-quarter. the second bloomberg chart to show you is logistics -- 4% my

-- four semi conductors. 45%, andbreaking above when you look at total gross margins for the first quarter they are actually at a record at 65% -- and looking ahead analysts recommendations across hold,ard, 28 buys and one and zero sells. haidi: the story becomes more intriguing and according to financial times, paul jacobs, he was originally demoted and has approached several investors in a bid to acquire this chip maker founded by his father. if he goes through will be one of the largest buyout deals in history and it comes off the back of president trump blocking the hostile bid.

this is according to the three people with direct knowledge to the matter according to a report. plenty more on that story. coming back, building materials taking a bit on asia's middle-class. this is bloomberg. ♪ mom, dad, can we talk?

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ydney open on friday trading. about a quarter percent higher when it comes to sydney futures. quite a bit of caution heading into next week's fed policy decision. betty: i am betty lou in new york and we're at 6:30 p.m. your watching "daybreak australia". >> the new york times says robert miller's team has subpoenaed the trump organization for business records related to russia. the company told the associated

press that the story is old news and has been fully cooperative with the dealer investigation. u.s. assets should several russian businesses for meddling in the u.s. election. chinese holdings and treasury fell to the lowest since july after investors turned sour. totfolio bonds notes sank $1.7 trillion 1.18 a month earlier in the last one market and its worst january is 2009 budget due to fear and inflation of aggressive rate hikes. snd was farmers is saying it i planning to spin off coles markets, subject to board approval and third-party consent. 2007.mers bought coles in

after an adlunged asked if users want to slap rihanna or punch chris brown. snapchat removed the ad and apologized. rihanna was a victim of domestic violence while dating brown in 2009. female staff less than male colleagues and is the widest gap of companies to disclose the information so far and is three times the u.k. national average. hsbc the debt will widen to 60% this year and all companies with more than 250 u.k. implies that the disclosed gender pay gap by april 4. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more

than 120 countries. summers. aessica this is bloomberg. haidi: we had to new zealand were trading is underway and you see a bit of downside there. heard the dollar indexing sing its biggest rise after two weeks after comments from the white house economic adviser in waiting, larry kudlow saying by the dollar and sell gold. bit lackluster as we had to the friday session. a bit of weakness there and more broadly, who will be watching the yen, japanese industrial production will be watching later today. the sterling trading -- and the u.s. 10 year yield falling briefly at 2.8%. and a reminder that we have the

longest losing streak for the s&p so far this year, four days h of 1%. tent o adam haigh is with us now, asia has been holding up ok. the sense of the moment, can we get further uplift and equities and push on from here? battle back in u.s. equities, and one interesting usrt worth looking at shows the optimism within the growth sector of the equity market. that is the white line there cometh into your member in february extremist turmoil in the s&p 500, these growth equities were doing well and have the best years. these are companies of earnings tightly tied to the cyclicality of the economy. people are happy to pay up for

these kind of companies. they are one indication that growth is ok in the economy is still doing well and equity market should continue to perform. another is a flattening of the yield curve which is continuing, and the volatility that is coming down after that initial spike your sink volatility get ink to pre-outbound levels january. we are seeing that in emerging markets and bond market volatility. and we are seeing it in equity volatility. well ford of transport a further uptick higher in equities. betty: plenty going on that could work against the equity markets, what is behind this and what to change it? adam: if you look at the price action in the last couple of weeks and certainly over the east few days, the land sal

scandal that engulfed the japanese seem, we see is quite interesting. people aren't discounting any orse of having to resign prime minister shinzo at the administration coming under pressure. what pressure is there, it is not played out in markets. if we dive into the terminal and the get this chart -- it shows you that how the yen performs around those tricky geopolitical situations. red dot is the brexit vote and later on in that your was the trump victory. you have pronounced moves in the currency there. we are on a strengthening trend this year, the last being a function of geopolitical and global concerns. trey concerns emanating from the u.s. and tensions on the korean peninsula. primen't factored into

japanese assets prices based on what is happening in politics. member everything going on in japanese politics is about the longevity of shinzo abe and if he gets another term and can follow through with a third prong of his reform agenda, which he began in 2012 and has got the japanese economy well into a recovery. some are even saying out of the deflationary mindset. just a little warning there that maybe japanese asset prices not factoring in the worst-case scenario. if that doesn't fall we could see quick and sharp moves. betty: adam, thank you so much. now speaking of markets and the impact, the federal reserve is going to consider a faster pace of rate hikes and question of whether they can or should is being asked from wall street to the white house. bloomberg editor kathleen hays is here with the latest. let's start with larry kudlow

and this new warrior on the economy with what he said about the u.s. dollar and china. fedleen: let's start with hikes because larry kudlow, cnbc contributor, played many roles on wall street. , to fightnamed donald trump -- tweeted by donald trump, the replacement of gary cohn. here he is talking about rate hikes. the market is going to take care of itself. and i hope the fed does not overdo it, and it seems like a mild warning to me. people think the economy does it need so many rate hikes. july, he was urging former fed chair janet yellen to show restraint and raising rates and in the past he said the feds

inflation models are not working. and i don'te those, find it to be particularly aggressive towards the fed. let me tell you more about larry kudlow. staffrted his career as a economist at the new york fed chief economist at the office of management and budget under ronald reagan, involved in tax cuts. he has held tax cuts are good for growth won't overheat the economy is . talks about the groping signals for central bankers. as a cnbc contributor that is how i got to know him well. just beforeure, bill clinton got elected in 1992, i wrote a profile on the

front page of the paper on larry kudlow and i went to cnbc to become a contributor and post them corresponded myself. when larry talks about the king dollar, he has been talking about the king dollar for years and he would like to see it a wee bit stronger but not necessarily calling for a real surge in the dollar. and turning to china we know kudlow is signaling a tough stance on china as well. worries we could see retaliation in terms of offloading rest treasury bonds. did we see the january trading as a warning? kathleen: i have to give our news team in tokyo a nice pat on the back of the story of --ponsys being a false alarm nice pat on the back of the story of treasuries ring sold as a false alarm.

china remains the biggest foreign creditors of the u.s. holding the most bonds, notes, bills, etc. this is the indication that andthing could be shifted it felt for the third straight month after hitting a record. but, here is the story. #btv 9267. holdings performed central banks -- the latest data from the fed, this turquoise shows china's holdings is starting to rise again and can see the move down here. this is the conclusion of this very brief story and chart. maybe we have to wait to get more data and find china hasn't changed that much at all. at least not yet. haidi: kathleen, thank you so much. australia's largest building materials firm is betting on the

move class in asia sent property is the key giant of growth. the shifting demographics that are happening globally -- the incident came out last year and said 880 million of the next one billion in the middle class will be in asia. we are seeing that shift happening when it comes to demand with high-quality products and high nutritional products. they are trying to get into the china demand as well. when it comes to building products, borrowers are saying they need better housing. to four walls when it comes safety regulations that come with these economies. the shift that happened in -- thekorea, taiwan shifts are happening throughout

developing economies and that is where borrowers are seeing. this has been a part of their agreement entered into 2014 and that is reflected with the earnings in the first half. betty: the company is also seeing some upside from president trump's infrastructure plan. matthew: yes, indeed. president trump counted $200 billion in spending for $1.5 trillion infrastructure plan in the u.s., which is needed in the u.s. brought back in 2017 last year, if oh-fers have earnings for them in the last six months to december in that group the contribution in u.s. earnings.

, it is anusiness additive in concrete that is needed for the and for such a plan. the president trump still has to get through congress and we know that it has the midterm elections in november so you're looking after that is plants have to get into tendering contracts get awarded from their. re. they don't expect anything for four years or six. but they do see that as a good transition away from when the u.s. housing market begins to ebb in the u.s. betty: matt, thank you so much. up next week they can to the trade war china and silicon valley.

more with gbh insights in a moment. "daybreak: asia." this is bloomberg. ♪

♪ haidi: i am haidi lun in sydney. betty: i am betty liu and you are watching "daybreak australia". the risk of a trade war with china has one and one thing investors are worried about is packed, and those worries are overdone.

gbh chief now is why shoulden investors not be worried? what sticks out his apple and when we plug numbers we think that macs incremental cost to the bottom line is a rounding error. services oriented not be affected of the china terror issue, i think the only one would be amazon -- which is only whichincremental costs they can absorb. it is scary headlines but when you dig into numbers, the bark is worse than the bite. you continue to buy tech on this weakness of scary headlines. i think it will be a blip on the radar. betty: why do think some are

selling on this news and why do you think it is heading there? dan: it is the retaliation and fear. when you go down there, can take be impacted? what can china do specifically with apple? at foxconn and the interwoven relationship there, they invested billions in china. tim cook has been a great job with the chinese government so it is a handholding period for a lot of these names. these tech names are less exposed but maybe these fears are there. radcomthe other news of and qualcomm and we had the breaking news moments ago about paul jacobs, the former chairman coming back and wanting to buy out all,. is that a bigger impact on tech? is a combination because

the qualcomm and broadcom -- one wonders that situation if it is a silver bullet with war against china of protectionism versus global. you look at broadcom and qualcomm at the same time and there is a worried that it is going to stall m&a and from an ip perspective be more of a headwind. i think it is an isolated 5g situation which is unique. we saw the headlines tonight that qualcomm continues to be the one with their backs against the wall. they got what they asked for but they are realizing is good to be difficult and investors are not going to be patient. haidi: is it a sideline situation because it is the latest in a pretty steady series of decisions that has gone along a similar vein. are you not concerned that this --ld intentionally potentially stifle m&a? dan: i think especially on some

of the sensitive areas like chip get second looks, but if you look at qualcomm because of the 5g battle, especially with china and of thing going on there, i think it is more of a isolated situation. you are starting to see a more heavy hand when it comes to the government getting involved here in some of these deals. but, i do not think it is going to significantly stall m&a. that is going to be a big consolidation theme in tech and that, but we don't see slowing down given the dynamics of what is happening in the field. retaliation,ms of it isn't just tariffs are being excluded. we are seeing facebook bending over backwards to try to get a piece of the chinese market and whatever progress they make is hard. how much of an impact will it be

if beijing were to turn around and shut down u.s. tech companies operating in the country, through regulation and censorship? apple it hasof been difficult to crack that not in terms of the chinese market. they also are not going to shoot themselves in the foot given the unter twined u.s. tech into that echo system within china. i think the biggest risk is apple given revenues that come out of there. but i do think when you break it down, it is a lot less risky that how the u.s. consumer ultimately we think is going to see what you're going to see in china, in terms of adoption of iphones. we think 60 million iphones come up for renewal in china and 100 million is the base over there. i think it is a handholding period but don't view it as a significant impact, even though

investors are going to sell be stocks. i think we will look back and view it as a blip. on withreat to have you us. interviews previous with the interactive tv function, tv and i've been bloombergurities and functions we talk about and join conversations and it's a messages during shows. this is for subscribers only. this is bloomberg. ♪

betty: he quick check of the business flash headlines at this hour. boeing fell in the fourth day and the longest losing streak since december of 2016 and is a early casualty of president trump's trade skirmishes facing backlash from china and other aircraft buyers.

there is also concern of the airbus stress of rival ramping up production. haidi: shareholders of the company survival plan is that there enough and the group posted 5% of the hope 400 million bonds in the deal is unchanged. when theficant change approval of 75% of votes, many the group holds a blocking stake of the proposed that deal. betty: fourth announced plans to topple toyota with a range of new suvs and was to build gas electric versions of its most popular pickles by 2021, including the best-selling f1 50 pickup, and mustang sports car. five suvs will hit u.s. showrooms including a small, rugged off-road are aimed at the jeep wrangler. haidi: that is it for "daybreak

australia", and daybreak asia is up next. are you watching? yvonne: we might be learning more of who the next the boc governor is going to be and there is a lot of questions. we see a lot of nominees who could be on that list, we talked to cap the economist about who that might be and what powers he might have under a more powerful pboc. they have the banking and insurance regulators all under one roof and will be asking him about what is to come but the next governor. betty: related to this is watching where the dollar trading as, particularly after larry kudlow's comments of a stronger dollar. that bearish trajectory of the dollar is in tech. haidi: lots of strategist saying

that. you will need more than throw a comments from larry kudlow. that is it for "daybreak australia". this is bloomberg. ♪

♪ 7:00 a.m. in hong kong, live from bloomberg's asian headquarters. i am yvonne man, welcome to "daybreak asia." a mixed day ahead for the asia-pacific. wall street saw losses in consumer and energy. day,&p fell for a fourth the longest losing streak of the year so far. investors now await the fed. betty: i am betty liu in new york. it is just after 7:00 p.m. thursday evening. good news for broadcom. after a bruising week in washington, earnings are in line with estimates. it is the end of the