>> it is 7:00 here in hong kong. i am yvonne man. welcome to daybreak asia. the top stories this tuesday. reward. asia-pacific markets said to extend recovery on wall street as trade wars ease. investor appetite coming back. the recovery set of the dollar to the lowest level in five weeks, down against all g10 peers except the yen. globalfrom bloomberg's headquarters, i'm betty liu in new york or is just after 7 p.m. on this monday. allies expeld responsiveness by attack in england. the fallout his facebook. and

jim breyer tells bloomberg the social network will change and survive. ♪ it is jsut one day and all over the markets in the next day we're back. today is the we're back territory. it was of what the chart here that i think is quite interesting. manyrt of signals when so investors are nervous about the open of monday today. bredth in the markets -- breadth in the markets all around the world. it should do the number of stocks trading below their -- start markets -- stock market trading below their 200 day moving average now over 50%. that is a bearish side by some -- fine by some indications.

i want to know this is updated as of friday. the new numbers have not been after the close today. i imagine the line going down is going to stop right there and pick up a little bit perhaps. you do not know we're looking at the next day or the days after these days. saw.e: does what we this amazing turnaround in the started in asia as of yesterday afternoon. mnuchin,from steve appearing to be diplomatic now. saying u.s.-china negotiations ongoing. too soon to say there is a break there. there is uncertainty in the markets we need to contend with. we are seeing a decent bounce back on wall street. zealand.ew we are following the kiwi, holding at 7298 -- .7298.

holding on to five-we close. we are up about 0.5% right now. 0.7747 for the aussie. are coming down to the opens in japan and korea. , stocks have already been oversold. season the earnings underway, investors surprising in. let us take a look at the action on wall street with romain bostick. romain today is risk on. romain: maybe for one day or

two. we never would have said this before but really what they had to say about the negotiations with china and the trade deals caused some people to say maybe this trade war is not going to be as much of a war as we thought it would be. we saw it first in the industrials, united technologies, boeing, jacobs engineering. all stocks moving higher. financials moved in and every other sector jumped in o after that. another reason we saw stocks move up today is bargain hunting. routeweek's wrot evaluations. the s&p 500 was trading at a full ratio of below 17. keep in mind earnings , up about the 21%. difference between

the earnings and what was bought it on friday. that is what you saw a lot of buyers joe baca today. ge downs back to its 52-week low bill o thirds -- below $30 a share. look at facebook. they were down 6% at one point early in the session. they're still down around 20% from their february 1 high. there below their 200-day moving average. if you're looking for any the stocks are, still below their 200-day average following the routes on friday. more than half the stock on the nasdaq are also below the 200-day number. there is a sign that we could be moving a little lower. it is hard to make that kind of decision. it is a phillies something you want to take a look at closer. . >> with the family for tech overall? last week it -- what does that mean for tech overall? can you actually isolate

facebook now look at the rest of tech in a bullish wife? -- way? romaine: tech resumes deposition we saw. this is what boosted the market for the last few months and what pulled the market down. it's a very well today. it listed -- lifted the dow, nasdaq, s&p. it was a very small sort of group of stocks that contributed the most. in the s&p 500, you have three big stocks. amazon, microsoft, apple. to another extent intel. for 25% of the point move higher. you saw similar trajectory of the nasdaq. you are seeing a group of stocks providing fuel to the market but in the liver. it is being spread very thin amongst the rest of the sectors prepare for to spinning in the rally but we're still talking about leadership amongst a really big large-cap tech

company. yvonne: thank you. talking about the overnight action. news. get t first word alisa: kim jong-un is on a surprise trip to china. sources confirm that visit but did not say how long he would be in beijing nor with whom he would meet. japanese media reported kim troubled by train. the trip comes ahead of expected talks with south korea and the united states. asking the rest of my compensation for lost trade due to president trump's proposed tariffs on steel and aluminum filing that they dismissed washington's assertion that the terror said due to national security concerns and argue there are restrictions to protect american producers. on ang admits it is not

trade war but says options remain open. facebook is heading into its worst month since may 2013. reports say advertisers are pulling out of the federal trade commission confirmed an investigation into its privacy practices. 6.5% decline a monday. market caps still down $100 billion over 10 days. mark zuckerberg has been invited to address the senate judiciary committee on april 10. >> they will get through this. changes.l have to be settlement with but other large technology companies, . here needs to be a renewed focus on security and privacy. alisa: 64 people are known to died in a fire at a shopping mall in siberia. dozens more were injured and people were detained for questioning.

investigators say fire alarms and emergencyg exits were blocked. 3000 kilometers is of moscow. director. say the most popular with young families global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. i'm alisa parenti, and this is bloomberg. thank you. president trump ordered 60 russian diplomat's to country. the largest such expulsion and u.s. history. allies are taking similar measures over the nerve agent poisoning of a former russian spy in the u.k.. joe is joining us from washington. the response was quite big, and it doesn't seem like we will get a russian response yet but what have they said so far? joe: this of a will respond in a matter of days. we will have to wait and see what is that they will do. do ay they will

tit-for-tat expulsion of some diplomats from the west. whether it will go beyond that is hard to say at this point. it is a fairly delicate situation. the nato allies acting in unison. that was pretty important for them to do this. it was an attack on the soil of a nato member. russia has been blamed for that. there is a unified response in all the countries that work together to make this a more widespread action. ised butany were surprsied the magnitude we soften the u.s. why now? biggests was the expulsion of the left the u.s. is undertaken. there has been a lot of pressure on the administration to get tougher on russia. was a flagrant

violation of standards for conduct between countries. they've had a rocky start with the trump administration since he is taken office. he is looking for some support from the u.s.. to make this really sick, it had to include the u.s. and nato allies. it was a severe response by the u.s.. they'll make it interesting when they meet with putin sometime in the near future. when he talked on the phone. betty: i wanted to switch to trade right now in the comments fromg out we heard mnuchin.

is it going to be brief respite? joe: it will depend on the negotiations. it was designed to scale back some of the tensions. it is part of what we saw with both administrations. the president makes an aggressive opening bid. you can see that with the steel and aluminum tariffs. we waited a little and sure enough, a number of allies to supply steel to the u.s. have been exempted. it was a lot of talk about the south. trade pact. they're looking at some resulting.

yvonne: thank you so much. bloomberg congress editor. before we go, i have to ask you one more thing about the white house and the reaction. the north korean leader apparently visiting beijing. joe: that has been something of a mystery trip. the white house said that they had no information about it and could not even verify that it was true. , it is a rather remarkable trip. the percent kim has traveled outside of the country. denuclearization. very important trip for him. the chinese are no doubt one that makes sure they are and not in these talks

left on the sidelines. they're the ones who probably had the most influence. absolutely and so interesting to see that development. thank you so much. we wound daybreak asia, we will speak to the biggest pork producer and ask him how the terrace will affect his business. this hour.er yvonne: just ahead, capital markets give us the outlook for fixed income after a wild day on the market. this is bloomberg ♪ . ♪

yvonne: i am yvonne man in hong kong. asian stocks falling wall street higher on an escalation the trade tensions beginning to ease. betty: what is happening in the

treasury markets? we're joined by the directioor of interest-rate strategy. we saw two 3% jump in equities. what is going on? >> please absolutely nothing i think that is the market's way of telling us a lot of the fundamental issues are still unresolved. they're still the question of how much china will want to buy in the long run. basicare a lot of other economic question. how much inflation can we expect here that are still unanswered. >> in these options today and the ones coming up this week, a racing evidence that china is pulling back on buying u.s. treasury's? with not seen any signs of that yet. today is the two-year. sensitive to the fed's.

next hike. that talks a lot about the fed's .ath pivot that option that will that option that will move it. -- where wewe see see evidence of there was disruption from the foreign buyers? you mentioned the five-year. where along the curb when we see that? aaron: is very difficult for a lot of buyers, especially in the u.s., to take how much interest rate sensitivity. the chinese balance she is huge and they have a huge demand for it. betty: are there legitimate concerns about this? aaron: not the bargaining think that is partly because for a lot of the trade tension it has been as rhetoric. the money they could out of the backury market a monopoly in an illegal margaret was at the curb.

you're starting to see some signs of that i do not think you can describe it to them yet. about -- yvonne: you mentioned about the uncertainty we are thing with the bond traders are now. we saw that we're affect of it as well. -- moreies and not get bastad think?you a shift you tend to have a seasonal pop in data the only part of the year where aaron: and we attack code and all this money. what and that happening is that never really panned out and when you look's at the history of the measure, it trails off at the beginning of the year protecting the reasons the markets are reacting less and the rhetoric is much more

focused on the data and it is not that strong. the safe haven but you do not a big selloff on that equity market history yvonne: having said that, you can say financial conditions are tightening. you're talking about cash yields going up right now. we are seeing stress at the front end of the curve. a friend and spreads continues to widen more what happens to the credit market? question.aaron: great i think that is one that you will have to wait and see because the stresses can be self-fulfilling. they do not matter as long as you connect with them away. they persist at some point they on thinke a mark earnings and you will start to see the shop in the next couple of months. i think it is a concern. something that should be on everybody's radar and i will stay there until after the pressure is debated a little bit. yvonne: we believe that there. ohli. kpo

the future of facebook. but the social networking to do to survive the data scandal and rebuild trust. this is bloomberg. ♪

betty: this is daybreak: asia. yvonne: i mean by man. quick check of the business flash headlines. ipo remains on track despite growing investor skepticism and governor -- ceo told bloomberg that there is still a lot of work to be done, but the plan is moving ahead. officials have repeatedly said the ipo would happen in the second half of 2018. however, they recently said it could be delayed until next year. >> we should be it, as we always say, a company for listing in

the second half of 2018. so we're doing a lot of work to get the company for listing. at the same time, their committees from the government but look at what they are doing. and the premier business we're doing to make sure the company are realistic. abandon the company of its unit 24 hours before the trip started sharing. demandted weak investor for the decision great it was set to raise $1.2 billion for the sale. the chinese government has been pressuring hna servers the acquisition binge and massive debt. default on noble group will pay out. it ruled that failure to pay credit events has occurred. contract ensuring $119 million in debt will be settled options. the commodities traders gets payment this month on dollar-denominated bonds and isn't facing the spacing

investor resistance. early facebook investor jim breyer is voicing support for mark zuckerberg amid esther over mishandled data. speaking exclusively to bloomberg, the silicon valley toend also called on tech focus data security and privacy. >> for sure there are multiple failures we hope, for happen again. i think mark and cheryl are annexed ordinary team and what i hope they continue to do is the very communicative am a very transparent, and let people now as soon as they know about a situation that is going on around data privacy. just the very forthcoming. >> you not think they should stand out over something like this? jim: absolutely no.

it will get through this but that will have to be changes. i think in not only the other large technology companies. there needs to be a renewed focus on security and privacy. mark and cheryl are simply extraordinary leaders. bad things can happen in some of these major companies, even with extraordinary leadership. i am sure they're fixing things very quickly. again, i think that sheryl sandberg and mark zuckerberg are two of the best executives in the world. >> are you worried at all that the tech markets globally are set for a correction and how soon do you think it will take place? jim: i think markets in general are overvalued based on historical price-earnings ratios. i do worry about macro valuation in the u.s. and in china. i believe many of the unicorn valuations were high. the inflow of money that came in

2013 and 14. oo farluations went t ahead with where they would go in a perfect five-year plan. i worry about correction that i also tend to hold stocks for seven to 10 years. founder-driven brilliant leadership team, there is always some valuation risk like over a five to 10-year time. period, three companies will tend to work out very well. that was jim breyer speaking exclusively to bloomberg. , kim jong-un is reported to be in china ahead of anticipated meetings with the west. the latest news surrounding north korea and taking you through your market here. a trade war tension easing of it

in saying that the u.s. and china ar going to these negotiations right now. egeopolitical risks seem to be easing. more from steve engle on what is to come. ♪ this is bloomberg.

>>; 30 a.m. here in hong kong. 30 minutes way from the first major markets. reducing the trade tensions easing up a bit. also working this week off with a lot of china earnings. betty: that is right. a lot for investors to take in this week. p.m. monday here at arena start to the week then we left on friday. markets closing much higher. best of the revolving door almost 3% as you can see. yvonne: i'm yvonne man in hong kong. you are watching daybreak: asia. let us get the first word news. >> thank you again money.

the u.s. senate allies are expelling scores of russian diplomat in response to the nerve agent attack on a former spy in the u.k.. washington alone is ordering 60 people out of the country and closing moscow's consulate in seattle, the largest action in u.s. history. the eu nation will 30 russians. the ukraine ordered 13 people to leave in canada expelled seven. that went a message will not tolerate russia's attempt to undermine our values. european nations will also act to strengthen their resistance to chemical, biological, and nuclear related risks. >> the imf managing director has told bloomberg euro area integration is short of what is needed and must be advanced by progress in several areas. she said the eurozone is already close to a market all that market capital unit.

she says proposed central fiscal capacity is more difficult. >> they came to close accountability but it is still short of what is needed. many more trust and more accountability and i think they really need to strengthen two things. that's three things. one of the capital markets, to is the banking unit and three and the central capacity the signal to the rest of the world that their shoulder to shoulder. fallen more than 8%, slightly below $8,000. this is the latest decline, pushing and lost this month the 25% rated is not far below that $19.5nt $5,000 -- thousand.

google saying it would implement a band this jay gruden wall bonus trump toe $184,220 and that is the highest since 2006. the bonus. employment in the sector dips slightly in new york city. profits from 19 member firms approached $25 billion. the most ever since 2010. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. >> we are counting down to some of the major market opens here. let us get the latest. we resolve the losses we saw friday already but working out. ? >> 50 a positive start to the session in tokyo and seoul.

this after the s&p 500 posted the biggest one-day jump since august 2015. when it comes to the bank considering. , thank heaven tracking their u.s. peers. i'm keeping an eye on the steel space as well. regains on monday. in japan, i will be keeping and i on the length of the field. the chairman said work is underway to intersections from u.s. tariffs on specific items. they've not heard of any cancellation for customers because of these plant tariffs. he previously said that the 15 to 120 level was ideal. it's onsee on g #btv, the investor in. the yen strength could be

integrated on the season. in addition to mnuchin's comments about the hopeful deal with china being really for speaking with optimism over a nafta deal. we had several strategist coming up saying that when it comes to the economic impact of the it is looking less scary and less threatening than what we have seen in market reactions though far. we're seeing perhaps a vibrant session this tuesday. betty: we might be. cooler heads may prevail when it comes to concerns over trade. protectionist policies and others are still driving down the metals. right? >> that is the case. trump camely, when into power with the pro-business agenda, that is an industrial metal story. it will boost infrastructure spending but tough trade

rhetoric is the rally and metals. checking out the star on the terminal, i will show you copper futures in shanghai, separate the first quarterly drop since 2015. immeasurable march.features in china will sink into a bear market on concerns over records files. -- piles. likely to see the lowest prices in 2018. the main designer set for the biggest drop since september. must and 10% in march. today, youn sydney

have miners to help that rebound with the benchmark set to snap a three-day drop. you can see the sea of green pulling up the imac function on the terminal. betty: think he so much. bloomberg being told, as we reported earlier, kim jong-un is in a surprise visit to china which would be his first known trip outside north korea since taking power in 2011. the story is backed up by media reports in japan. our chief nor shahzad correspondent -- north asia quest one is watching this involvement in tokyo. mysterious. even the chinese had no idea he would be there. someen: i think there were people in beijing who knew he was coming because he did have to take that train, which is quite a unique strain very similar to the one that train very similar to the one his father used. difference across the border in north korea in technologies china and to beijing, when they

parked at the beijing railway station. if. you can kind of tell a high-level official from north korea is coming great but we .on't know the other now? course -- why would he go there now? ahead of the possible summit, if you want to call it that, with location yetmp and to be determined. they want to engage from kim jong-un when strategy is. going into tulsa trump and what he wants from the united states, whether he is sincere in his willing to he is cover -- uncovered weapons program. very interesting saga with a potential meeting as well over moon jae-in and kim jong-un.

>> is seems like the u.s. and japan, guard with a visit from kim as well. >> when reporters heard about this, they asked the deputy press secretary as well as the department press secretary. neither can confirm it but we heard from the white house deputy. what this does show is the maximum pressure campaign from donald trump along with dozens of other countries has brought north korea to the table and also has the dividends. you should refer your questions to the chinese. >> we will see how this changes the dynamics of the meeting with trump and kim jong-un. the ahead, we're talking

ceo of the world's largest producer of pork. this is bloomberg. ♪

>> this is daybreak: asia. betty: i'm betty liu in new york. a quick check on the latest business flash headlines right now. china's lender reporting a 5.3% gain and profit things to the economy. advance net income climbing to $30 million. major banks are seeing profitability improve' afters china economic growth accelerated in 2017 for the first time in seven years. hasne: china everbright moved away from a detriment

expansion. the developers for profit doubled in 2017. things record home sales and lower finance costs. 34% grant says sales rose held by booming demand for homes. they continue to cut debt. china fund kf go to ever grant saying he will press again with what they call prudent investment after recording full-year profits that beat estimates, income rising to $4.5 billion. they added competition on the land market is fierce. pork may be said to play a leading role in the trade drama. officials show american statistics topped at a billion dollars last year. that andscuss all of

the results of the potential impact of tariffs with canceled and. good to see you. it is amazing, the trade dynamic we see. one day we are trying -- having to a trade war and then a trade true spirit we see the retaliatory response in china, which benefits the group in the middle of all this given the fact that two thirds of your revenue comes from the u.s.. be?big of a hit could this >> the short answer is you have to recognize or knowledge any increase in tariffs would make the trade between the u.s. and china more difficult. that said, i think the dialogue around the street issues has been hysterical. frankly, it would have been a surprise had we not been where we are here. the issues of market access and reciprocity and intellectual protection, these have

been well known for a long time. president trump campaigns on that, so the idea that we are having these discussions now i think is not a surprise to anybody. what has been a surprise is the almost hysterical reaction of the markets 20 from late last gloom tooom and yesterday. context, for the wh group, the vast majority of our businesses are in the countries in which we operate in. another is, the business in china, the vast majority, all of that is in china. for the u.s. business, virtually, or most of our business, is either in the u.s. or in the 39 other countries we export to. china is only one market we export to an is one market and the vertically integrated model. in other words, we are

processing and raising hogs. packaged meat. -- we're making packaged meat. 70% or 80% of our business for profits are in the packaged meat business. they have nothing to do with this. we cannot even sell packaged meats into china right now. it is not allowed. >> to strategy for much of the couple of years since you acquired this was to raise the hogs in the u.s. senate for them to china. none of ecb strait conflict some are you going to lose that competitive advantage? >> i think that is a little bit of an overstatement of what are strategy is another words, the 2013'ehind the merger in is thats smithfield the world's largest pork producer. china is the world's largest pork market. china has become increasingly self-sufficient in the port business. only two of domestic consumption

is now imported into china. the u.s. comprises of only about 50% or 20% of that. -- 15% or 20% of that. the parts ofabout the pigs that americans do not consume. in those markets for that reason, they are important because americans do not eat those and we do not have a robust market for them in the u.s.. wh group is a public company. we have u.s. shareholders and european shareholders and chinese shareholders. to whatever the highest market is an effect is the chinese market, that is where we will sell it.

yvonne: a lot of people are saying targeting them is china's opening shot. the biggest rest is if we didn't see soybeans in the u.s.. commerce ministry had conversation with companies. we you in those conversations? >> you are correct in your assessment of the real big issue is soybeans. pork is a small piece of this. yvonne: it is the low hanging fruit in china. >> it is. the other thing is, if there were tariffs placed on soybeans, it would actually benefit our business. half of the production is being exported is soybeans. if that gets backed up it will lower the cost in the u.s. metal benefit across the board.

soybeans is the 800 pound gorilla here. i'm also not suggesting we should be cavalier about tariffs. we shouldn't be. we're free traders and we believe in it and certainly we believe cooler heads will prevail because it is important to will countries. not just pork, but the trade is important to both countries. betty: i'm. , we have seen the shares get knocked down based on the terrorist. he just how far am. the impact. the u.s. see this as been devastating to a u.s. farmer from your point of view? i within the market

reaction last week was certainly negative to the u.s. pop farmer. i think we saw the three dollars from a hundredweight taken out of the future strip which converts to about six dollars and hit on a lean hog basis. certainly, it has not been positive. , that i would tell you, as markets do, they tend to react as we saw the equity market on thursday and friday. brought back. i cannot predict what is going to happen with the commodities none ofy would tell you the fundamentals have changed. worldwide pork consumption is wrong. i think that we are perspective for find itsets way to greet the markets are so fundamentally strong. betty: obviously, you will always want to see the start raises rise -- stock prices

rise. but it seems these days they rise and fall based on a comment here or there. to you to see your stock price s to down 4% as it i possibly go up 4% the next day? ken: sure. the short answer is yes. it is a functional world we live in. the instant information, knee-jerk reaction environment that we live in, the thing you have to do is you have to be circumspect about it. you have to be circumspect similarly about the trade discussions. the fact is they were going to occur. hasfact is each country something at stake. the fact is officials from each country have indicated a willingness to work this out, and i think they will. looked like that today, can. parties 0-- ken. work you think we will be in one month time?

how long can you not down the sideline for how long can you ay this will not have an impact on your business? -- ken: i cannot predict or we will be greatly more positive comments coming from both sides. the respective governments contemplate the u.s. will come up with a list of product they will apply tariffs to an early 830-that's there will be a 30-day comment period. in terms of the impact on the world the be an impact in the u.s. business? sure boat we are a geographically diverse company. we have operations not just in romania,but in poland, mexico. it is not the effect of them think it would happen yvonne: you have a question coming

through here saying that what is the exact percentage of the total company sales court makes in the u.s. itself in china? ke inn 2017 that would've been in the 5% to 7% range:. the key about that metric is a large portion of that, 75% 80% of that, is stomachs, livers, snouts. the things americans do not eat. >> tell us more about pork prices>>. even before the terrorists we saw disparity with what we were seeing the u.s. and china. -- tarriffs we saw disparity with what we were seeing with the u.s. and china. >> in china ineffectually a tailwind to our chinese business. china benefit from that. what do i see going forward? if i think i would be playing the futures curve and would not be sitting here.

wehink in general terms, expect pork prices to remain relatively low in china for the balance of the year. we expect some rebound. we have nothing over the past couple of days. be relatively to low in the u.s., lower than last year. there is a dynamic of newport plants in the u.s. there are about four newport plants. barring any trade instructions, the idea is that the space will be chasing those hogs and i would place upward pressure on it. when you look at the feature strip i would expect to the balance of the year that that will rebound, the prices will rebound. >> there but they can go much for joining us. ken sullivan. smithfield foods president and ceo in hong kong. thank you for joining us. back on the fed and the economy.

the top beneficial endorsing the cautious rate hike path. it is not rate hike causing the but today. we had news around the new fed divisions a look at another white male of economist to be its next. those above reports. kathleen hays there with the latest in the new york the division is a powerful position. >> one the most powerful in the federal reserve. we are seeing a bit of backlash on the question of timesity, because it is a in many institutions were people are taking a look and say we have a lot of men are not too, etc. remedies came out of the weekend of like john williams is the front-runner to replace the new york fed president bill dudley, we were getting some reaction. booker, a man of color in a democrat wrote a

bloomberg view column monday winning out that the new york fed she has never been a woman or person of color in the people should not be left on the sideline. this is drawing more attention because this is an important position. let us see what it is that makes the new york fed president so special. first among equals, and you might say. a permanent voter on the fomc because the president does not rotate about with other fed president. big wall street banks. that is an important responsibility. what does john williams bring to the table? well respected macroeconomists. he is also considered a fall leader o.not a lot of experience in the market. no bloomberg terminal that he would, some say, be able to help a lot jay powell's perspective

on policy, on economics. he is an investment banker, of course. meanwhile, democratic senator ifzabeth warren said vineyard fed is going to select john williams as its next chief, he and the two cochairs of the search committee should be before theestify senate banking committee. this is creating a lot more excitement. >> certainly interesting to see this type of backlash, but a timely topic of open kathleen, thank you. we're coming down to the open's in japan and korea. let's go to japan really quickly.we are seeing the dollar-yen trade favorable for the equity today. the upside seems to be minimal so far. betty: that is right. the future is taking a lead from publicizing mentioned here in the u.s. rally bounce back

from that friday close. , jpmorgan giving us the currency outlook, fears of a trade war starting to receive.

♪ 8 a.m. here in hong kong, we are live from bloomberg's asia headquarters, and yvonne man. welcome to "daybreak asia." trade war fears are starting to ease, and investor appetite is back. the recovery sense. its dollars to its lowest level in weeks. betty: from bloomberg's global headquarters i am new here in new york. it is just past 8 p.m. on this monday. china is looking for compensation on trade, hit by u.s. tariffs, the first step on a road that could lead to a wto feud. and, north korean drama turns another page.

sources saying that kim jong-un is making a surprise trip to beijing. ♪ yvonne: investor appetite coming back in a big way. i think it is safe to say that wall street, it was interesting what we saw. bede concerns that seem to de-escalating a bit, after there was the initial catalyst. the also had to look at the losses we saw in the last week in the s&p 500. it was looking but for some of these valuations, and we saw some bargain-hunting. betty: many of our guests yesterday said look, financial investment took a big beating, but now the stocks are looking a lot more attractive. and it, we saw that bargain-hunting in financials and also, tech shares. you are showing chart the

other day, this is likely to continue going forward. yvonne: yes, let us see how things continue in asia today. markets opening in seoul and tokyo, here is sophie kamaruddin. should we believe this rebound. sophie: so far, the rebound we's has been sparked first in asia on monday. -- this rebound that we saw, giving hope to a rally that many rest.oping to lay to the nikkei 225 added nine tens of a percentage, led higher by consumer, discretionary and industrial stocks. kospi, gaining .6%. korea, filing for bankruptcy if no deal with the labor union is reached by april 20. this has been a ongoing dispute and is weighing on stocks. plus, kim jong-un will be making a trip to china, his first trip

outside north korea since taking power in 2011. in sydney, the asx 200 set to snap a three day drop their we had the yen is talk about the 1.05 level, given the return of risk appetite. -- the 105.0 level. the yen shorts are being cleared out, and it looks like it could be time for young selling. when it comes to a near time -- time for yen selling. ino, the land sales handle japan is going to be keenly watched throughout the day today. by crude dollar sales exporters are also supporting and they aree, korea talks to take place march, 29th. the kiwi is study above 73, as tenure as thehis

rba governor. anti-semitic so much, sophie kamaruddin checking the markets for us to react we have my card more in singapore, mark, is there a bull case building here? as of unmentioned, valuations are looking certainly much more attractive? guest: i think there are two ways to look at this number one is the longer-term structural argument. that valuations and growth ours dill good, as well as earnings. i don't think there is anything to be bearish about your we had but it does not engage the tactical problems we are seeing the market. people who look at valuations and stocks are not really care about the little swings come at a look at the long-term areas and we had it is laughable to suggest that we are already beyond these trade tensions. over all, they were probably not going to be that that come a but we are several weeks away from clarity.

these moves of several percent either way are becoming the norm nowadays, and we should not read too much into this. it is about the technical nature -- the tactical picture. it is looking good, but i do not think we have read the lows yet. betty: but mark, we keep hearing from different guests. goldman even laying that these tariff tensions are going to have a negligible effect on growth. other saying that this would be a small part of the business. is it to rosie of a picture? yark: not necessarily to ros but it is too early to be sure. that trade tariff point of views a little bit more severe than they were expected to be. like the u.s. administration is looking to negotiate, and we have seen the china response looking quite measured. there was a lot of optimism, and

that hopefully an agreement will be reached and it will not be regimental to gdp growth. it is unreasonable to have a high conviction like now. we need to wait a few weeks to see how it lays out. because of that, it is unlikely willlong-term investors pile in with the risk at this time. there was just not high conviction yet. yvonne: mark, as you mentioned, there is still a lot to go when it comes to the trade picture. geopolitics as well has been pretty good. we talked about a 100 russian diplomats being expelled, and kim jong-un going to beijing periodic what are you keeping an eye on, quickly? for: it is another reason volatility to stay high, another reason for risk appetite to stay low. and i think that is why we will see that in the next couple of their we had might see more of a climb today, but ultimately, we

will probably see lower prices ahead.week or two the short-term fundamentals are still negative in terms of high volatility and reduced liquidity. tactically, we probably have more downsides in the next two weeks, before we get through all of this. yvonne: alright, mark. thank you for your perspective. our micro strategist there, joining us from singapore. for more on this story, you can see that on our market live bloomberg, at bloomberg. m.liv ego. you can find out what is affecting your investments right now. ready? betty: let us get to the first word news with ramy inocencio. ramy: scores of russian diplomats are getting expelled due to the attacks on the former russians in the united kingdom. washington alone, ordering 60 andle out of the country

closing russia's consulate out of seattle, the largest such action in american history. ukraine ordered 13 people to leave, canada expelled seven. facebook isgy,' headed for its worst month since may of 2013 with reports saying that advertisers are rolling back as the federal trade commission confirmed an investigation. went through a 6.5% decline on friday, and stocks are down about $100 billion over the past 10 days. mark zuckerberg has been invited to address the senate judiciary committee on april 10. director,naging kristen lagarde, has said that your integration is still what is needed and must be advanced i progress in several areas. she says the eurozone is already close to a carbinol markets union and almost there for a bank stop, but proposed federal

fiscal capacity is more difficult. closey came to accountability, but it is still short of what is needed. they need more trust, more accountability, and i think they need to really strengthen three things. one is the capital markets. two is the banking unions, and three, the central capacity that will signal to the rest of the world that they are shoulder to shoulder. ramy: to cryptocurrency. bitcoin falling more than 8%, sliding below $8,000. the latest decline pushes its last in the past six months to 25%. bitcoins aspects were not helped either by twitter banning ads in sales,nd took after facebook banned cryptocurrency ads in january, and google saying that it will implement a ban as well in june.

global news, 24 hours a day, powered by more than 2700 journalists. in more than 120 countries. i am ramy inocencio. this is bloomberg. ♪ yvonne: kim jong-un on a surprise visit to china. let us get to our asian governments managing editor era in our hong kong study of. dan, give us a contest. how big of a surprise is this? dan, if it is confirmed, it is huge. he has not left the country since he took power in 2011. his father, kim jong-il, used to go to china pretty frequently, so it is not a surprise necessarily that the north korean leader would take this special train from pyongyang to beijing. but, under kim jong-un, he never met president xi jinping. relations between china and north korea have been particularly frost the in the past year.

so, it is a little bit surprising. yvonne: yes, ahead of this proposed trump and kim summit. analysts out there saying that china doesn't want to be left out of these discussions. why would they want to -- what would they want to convey to kim jong-un? dan: they have sort of stayed on the sidelines a little bit, kim and trump reaching out to each other. china wants to make sure their interest are protected. they are concerned about anything that might lead to u.s. troops on their border, that might help enhance u.s. capabilities in the region. the flipside, having that talks completely collapse collapsed and lead to a possible war. you have john bolton in there, who was just making the case for preemptive war. china wants to make sure that everything is stable and smooth, and about their interests are being protected. betty: are we ever going to know

or get confirmation about this visit, or is that confirmation going to happen after he has left? dan: typically, in the past with kim jong-il, the confirmation came after he left the country. samehat is probably the thing that they will do in this case. the south korean media reports that it could be his sister, and not him. so we are still waiting for confirmation. either way, it looks like a very high level north korean official is in beijing. ist signifies that china taking a more proactive role here, to make sure it's interests are protected. it also comes on the heels of trump threatening a trade war. there have been some editorials thatate-run chinese media trump is going to play this game on trade, going to enhance diplomatic ties with taiwan.

china can also use north korea as a geopolitical tool. betty: dan, the white house appears to be basically surprised by this. do you read what into it? does it change the game at all for trump's meeting with kim? dan: it is a bit too early to say. information is so tightly controlled in north korea and in china, to some degree. what it means for the trump visit? china would have to come to play at some point. they are such a key figure in the korean peninsula. they are right on the border, the defendant north korea in the korean war and they have threatened to come in and defend them, if trump were to attack and try to overthrow the regime. china has always been a major player in all this. so i'm not sure how much it would change the actual dynamic for trump, but it certainly

shows that china will not sit on the sidelines here. betty: no, not at all. dan, thank you so much, our asian government managing editor. ahead, we preview of big meat for bankers in china. a jump in profits for this company after a couple of dismal years. yvonne: also up next, the impact of up a symbol trade war on asian currency. jonathan cavanaugh from j.p. morgan will be talking to us. this is bloomberg. ♪

♪ yvonne: this is "daybreak asia," i am yvonne man in hong kong. betty: and i am betty liu here in new york. the dollar dropping on concerns about a trade war. effect on asian currency, is jonathan cavanaugh.

before we talk about em currencies, the dollar it self, does it make sense to you to see the weakening trend today, given the surgeon equity? jonathan cavanaugh: i think the longer term fundamentals for the dollar, is that it is to the downside. the large twin deficits the u.s. is projecting over the next 12 to 18 months should certainly theinue to undermine dollar. the federal reserve is on a gradual path to normalize interest rates, but which and inflation fight -- pressures are not out of control at this point. so the longer trump trajectory is still a weaker dollar from our of. betty: we heard talk of a gradual path for interest rate hikes. we have implemented several rate hikes here in the u.s., and according to jay powell, we will see perhaps even more hawkish rate hikes in 2019 and 2020.

that bode for a weakening dollar trend long-term? jonathan: you have to think about what is happening in the rest of the world over that period as well. if the rest of the world is starting to look stronger and better, then generally we will be in an environment where growth differentials are narrowing against the u.s. economy or the u.s. dollar. that will be drawing capital off the u.s. into other markets. you also need to think about what will be happening from a policy perspective are generally from the ecb over that same time. . if they are talking about -- over that same time. . it could be a bigger shift for markets, relative to what the fed is doing, which is usually much more advanced in terms of its tightening cycle. if you refer to that, the external balances in the u.s. between deficits and at retro,

particularly compared to what is happening in japan on that front as well, it paints a fairly downbeat picture for the u.s. dollar over the next 12 to 18 months. yvonne: we saw emerging markets asia fx hold up quite well from what we saw last week in the midst of all this turmoil, and now it seems like we are headed to a trade truce. i would like to show you what asia fx looks like. the appreciation from last year has held up but it has also stalled a bit. as trade tensions de-escalate, is there any upside? jonathan: i still think that that is definitely a positive outcome for markets. as you said, we have been in a fairly positive environment for asian currencies in the past 12 months. i think the lack of fallout we saw last week arguably reflected a number of excesses.

i think the market has been anticipating this great trade tensions to come. as you said, we see trade announcements, but we also see countries or regions eating able to negotiate better deals there we had a think that has been helpful, but i think the other important point to note is that ultimately, one of the key factors that could help lower trade tensions over the medium-term is that some of these asian countries which have positive external balances, could see their currencies actively appreciate against the dollar. that could help reduce trade deficits that the u.s. has with these countries. we see that as very much being part of the medium to longer term solutions to lowering trade tensions. that is where we like currencies others, korean won, and higher against the u.s. dollar, because they have such strong external balances.

their currencies can appreciate against the dollar in the medium-term. yvonne: so you think currency policy is way to play a role in he's bilateral tax that the u.s. might strike in order to rebalance the trade deficit. if so, how much is south korea ?illing to allow the korean won jonathan: to appreciate that is an important question. taiwan andries like south korea, they form part of the global supply chain around tech and other things, etc.. export earnings are obviously very important drivers for the economy, from. an investment and employment perspective. it is not like they can turn around and say, well, we will let our currency strengthen 20 to 30%. going to beously destructive to these economies. certainly, a more modest pace of appreciation over a number of

years is something we think they can handle, particularly when the global economy has been doing so much better over the past 12 to 18 months. these economies concerning manage. betty: it has been interesting to see that the chinese room on the has been rising amid all the trade tensions among even before the trade tensions. what is the outlook for the chinese yuan? what do you think they will let it go? dan: i think the chinese authorities have stated that they want to let market forces play a bigger role -- jonathan: i think they have stated that they want the market forces to play a bigger role. we think it will continue to be a steady and gradual path, a feature of the market to her that outlook. we think at the moment that chinese currency is on a fairly firm footing. you have better capital flow

dynamics to china, you obviously have a broadly weaker u.s. dollar environment, which ,trengthens euro and yen feeding into the daily fixing mechanisms. at the moment we are on firmer footing. the only concern is that some of their valuation metrics suggest that the currency is stunning to look a bit expensive, which prevents us from looking at long positions in the chinese currency at this stage. but it is difficult to see the scenario with devaluation prices in that we saw in 2015, 2016, return. that seems very low probability scenario, at least for this year. yvonne: thank you so much, jonathan kavanaugh. jp chase executive director and foreign strategy for emerging markets, asia. thatan get a roundup of story and many more to get your day going on this daily edition

of "daybreak." it is available on mobile in the bloomberg anywhere app, you can also customize your settings so you only get news on the industries and the assets that you care about. this is bloomberg. ♪

♪ yvonne: this is "daybreak asia ," i am yvonne man in hong kong. despiteaudi aramco says growing investor skepticism and government provocation, the lead up to the ipo is coming. the spokesman said there is work to be done, but the ipo is moving ahead and might happen in the second half of 2018. they recently suggested that it could be delayed until next year. >> we should be as well with say, aiming for a listing in the

second half of 2018. toare doing a lot of work prepare the company for listing. at the same time, there are committees from the government who overlook what we are doing, to make sure that the company is ready. group --po for a skate as group were stopped. spokesman saying that week investor demand for the company stopped the appeal. the chinese government has been pressuring hna to reverse its acquisition binge and pare its massive debt. betty: a ruling that failure to pay credit has occurred. -- $119 billion of noble's debt will be auctioned. it is also facing investor

resistance to a debt restructuring plan. much more ahead. china asking the u.s. to provide compensation for. president trump's trade tariffs. what this means, next on bloomberg. this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ 8:30 a.m. in singapore. markets are looking quite funny, we are about half hour away from the opening of trading in the city. i am yvonne man in hong kong. betty: singapore usually looks sunny and pretty perfect. i am betty lou and new york, you are watching daybreak asia. ramy? bey: kim jong-un is said to visiting china and what would be his first trip outside north korea since gaining power in 2011. longes could not say how he will be in beijing, nor with whom he will meet.

japanese media reporter said that he will travel by train, ahead of expected talks with south korea and the u.s.. meanwhile, china asking the u.s. to provide compensation for lost trade, due to president trump's proposed tariffs on steel and aluminum. they dismissed washington's assertion that the tariffs are due to national security concerns and argue that they are merely restrictions to protect american producers. beijing insists it does not want a trade war, but it says that all options remain open. 64 people are no known to have died in a fire in a shopping mall and siberia. dozens more were injured, four people have been detained for questioning in a criminal inquiry. investigator saying that for fire alarms were blocked in the complex. the place is 3000 kilometers moscow.

wall street's average bonus jumped 17% in 2017 to 100 it is $4220. the highest since 2006 and according to estimates by the new york state comptroller. jumped -- the to $31ool jumped billion. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am it really inocencio. this is bloomberg. ♪ yvonne: we are looking at how asian markets are looking up this morning. a decent bounce back after the roar and equity we saw last week. let us take it over to sophie kamaruddin. sophie: gains across the board.

the yen is retreating as risk appetite returns. ,heck out the korean won gaining the most in nearly a month. the offshore yuan is continuing its client admits expectations that the u.s. and china will come to an understanding on trade. it broke the psychological level -- 6:30 oneady on monday. traders might be able to gain some relief today after the recent selloff we saw in shanghai stocks, which might have been overdone. fits not alone in saying that china and the global economy can cope, even if the u.s. follows through with the tariffs. goldman sachs chiming in that the global growth outlook is holding up despite tighter financial conditions and trade rhetoric. checking in on some equity movers: japanese automakers clamping after talks are said to be underway for exemptions on some products. korean steel stocks are a bit

mixed about. tokyo, the index falling after they announced their trade to a venture in canada. .he japanese company inpex yvonne: thank you so much, sophie, looking at those metal shares. for more on the u.s. and china trade tariffs, here is our chief asia correspondent. beijing has decided to do here? guest: betty, i would view this as echoing what chinese ambassador to the u.s. said last week, when he said that all options are on the table. threatened $3 billion worth of tariffs, and now they are also saying, look, we also

have the wto open to us. the responsible global citizen, if the want to. china could retaliate against the u.s.. this is their subdued first response, but down the track if trade tensions worsened, it could get deeper indeed. could be affected and we could start going into treasuries. betty: but does this suggest that the wto might be the farm were these trade disputes are settled? -- the forum where these are settled? this is true -- this is true, betty syria and there is a sense of irony with china saying, look, we may use of the wto as a way of solving this.

we should remember that the u.s. amid all these headlines, also launched an application to the wto last week. the system is stressed, we are in uncharted territories, and perhaps the wto is not completely out yet. there was hope that it may become part of the solution to all of this. likee: i think markets that idea. the wto is still intact at this point, but what is next? we still have not seen the list of additional tariffs on china? enda: know, we are flying blind. we do not's know yet -- we don't know yet how much the tariffs on china will be. treasuries secretary mnuchin has said that there are ongoing talks which are having progress. john bolton in negotiations saying that they don't really want a trade war. china remarking last week, we can open up things that we can make from us is on. but as we know, trade issues can change very quickly.

yvonne: yes, as you mentioned, that tone is different for now. much, our economics correspondent in asia joining us to talk about the trade tariffs. searching not to japan, japanese prime minister facing questions over the public landfill to a school which may have been connected to his wife. the tax chief will be testifying at the dais, and we are joined by our correspondent from tokyo. steve, what is the latest and what can we expect from today? steve up as you mentioned, the former finance ministry official, he will be given his behind me to lawmakers. he has perhaps, according to a number of political analysts, potentially being made out to be the fall guy for the foreign ministry. the foreign minister, aso, many people have called for his

resignation, following the re- irruption of this scandal which came to light last summer. it was reignited with new details coming out about this questionable land sale to a nationalist-leading elementary school foundation down near osaka. it threatens the reform agenda of prime minister shinzo abe. keep in mind, the finance minister also has been by shinzo abe since 2012 and assisting him with his efforts to change in the competition. if he loses the support of his party, this whole agenda could be an question. he has been interrogated by members of his own party, a very unprecedented development. if he does not get the support of his party, it could threaten his leadership which is up for reelection comes september.

that threatens his standing as potentially the longest-serving japanese prime minister. wenne: steve, the scandal have been talking about for nearly a year now, what is it resurfacing now with such fervor? is the cover up worse than the deed itself? steve: this is an interesting question. why now? it is almost one-year-old. on merit, perhaps it is not the biggest, worse scandal that japan has faced, but it is the worst when that he has faced in the last five years. his approval rating last summer was in the 30% range. weimproved to about 50% when had the autumn elections, because again, shinzo abe went on his nationalist bend and hardline approach against north korea. there is the evidence now that the finance ministry has conceded that they did dr. some

documents, removing the name of shinzo abe, removing his wife's name, and removing finance igniting ato aso's a time when his popularity is going down. sliden mind, he was slide a bit in popularity and confidence but donald trump was the steel tariffs and also the conciliatory tone of meeting with kim jong-un. shinzo abe has banked on his popularity rising because of his hardline approach with north korea. yvonne: really quickly, given abe?candal, how weekend is steve: he is definitely weekend. keep in mind, this has been a top story in the daily newspapers for quite some time now. on theeally touching grassroots level.

look at the latest survey numbers. from over this weekend, the approval rating falling another 11 points, to just 32.6% approval. to 54.9%al rising 13%, of the japanese population. that is significant. poll, a financial daily newspaper, shows 49% disapproval for shinzo abe. he has taken a pretty big hit. steve, thank you so much, stephen engle our chief north asia correspondent. in a moment, we have a big week for bigger earnings in china. betty:this is bloomberg. ♪ he will see what we can expect among the banks.

♪ yvonne: this is "daybreak asia,"

i am yvonne man. betty: and i am betty liu here in hong kong. a combined net income for $150 billion in 2017, a 50% jump for the big lenders. ramy inocencio year with the bloomberg terminal chart. ramy: looking pretty rosy as we look into the earnings week. taking a look at the figure you just mentioned, a 2.9% growth year on year. it looks even better when we look at 2018, estimates were a .1%. this is because of china's faster than expected growth, nonperforming loans that are falling and rising interest rates. let us go to my first bloomberg terminal chart, g #btv 5099. we are seeing in white, the agricultural bank of china already out. tencent up earlier from about nine cents a year -- nine cents

year on year. citic, upe are seeing 16% year on year. looking ahead, china construction bank and pink as well as in yellow, industrial commercial banks, icbc, with our expected to see rises. #btv 7405,rt, g creeping up. --agbank up,.5% ever since 2014, for the big rise. we expect this to happen come as more of those banks continue reports later this week. , claimingte chart interbank rates are helping the banks. the white line is that shy borrow one month, and the six-month see fed is in a blue. we are seeing this rising ever

since 2016. right now, the shibor is that 2.5%. these are the three big lumber terminal charts that i would like you to look at. we have a slew of earnings coming up ahead, this is what we are expecting in terms of net income growth. at 2.9%.gbank icbc is expected to have income growth at more than 1%. ccb is expected to have 4.3% rise as well. yvonne: it will be a big week ahead and we had let us get more analysis now on chinese equities ke.h asia-pacific strategist c n nwe are seeing a strong rebound in asia, more than we saw in the u.s. overnight. is it ok to say that we are coming to the end of these trade

war worries? guest: you are certainly seeing less worried. what is the u.s. asking? with reduced tariffs? opening up markets, cutting overcapacity and reducing technology, these are things that china was willing to offer anyway, and it was just a matter of pace and size. i think room for negotiation was there to start with. and i think the last week was a little bit of overreaction. yvonne: do you think we could be seeing a bit of a catch up here today in the asian markets? we have the earnings coming up, as that going to be a catalyst? ken: i think earnings will be important. the analyst expectations, but we already saw that 2017 earnings for the industry as a whole, which were up 6%. the fourth quarter was a bit flat, and i think that is an upside for the annual estimates

that you showed there. important forre markets, i think it is whether these banks are making significant progress in reducing npo's or at least stabilizing them. i think that was the first year where they made more progress. we have a combined regulator now, and more entrenched policy ticky financial stability, so i would expect to the mpl progress to be even go even further. yvonne: it is interesting. ramy mentioned higher rates, but also the reduced policy risk after the npc. the have maintained these neutral monetary policy, which suggests that it could be muted. have we really finally turned the corner, you think? ken: i think they have turned

the corner in terms of asset quality. the reason that the loan book is still growing is i think regulators attacking the shadow banking system. more demand returning to national banks, bringing more growth to the banks. interest rates are also higher, so that is quite good. we are not talking about the tech type of growth, but i think npls and stable margins and profits, has been great for the sector. yvonne: i would like to bring it over here to the u.s.. you hear a lot about these chinese banks and how they are trying to expand here in the u.s. market. it is still in a very nascent stage. betty: big differences with lenders in the u.s. real estate market.

given the regulations in china, they have really pulled back. i am curious, what is your view majoransion of these lenders here in the u.s., where might they tried to find some of or growth in the u.s., if they are not doing it in the property market? manyi think that has issues involved. one is the capital account is the trade negotiations, bilateral investment agreements, those have been under negotiation for probably over a decade. they haven't really made progress in terms of the financial sector. example, the foreign banks in china, they only account for 2% of assets in that sector in china. need tradet we negotiations, we beat to see

china welcome more -- we need to see china welcome more foreign banks for we can expect chinese banks to do better in the u.s. markets. i don't think the current setbacks for the real estate lending in the u.s. are that meaningful for the chinese bank results at this point. a longer term trend for more investment there. yvonne: biggest conviction trades for u.s. markets? ken: i would say that the biggest opportunities are still sustainable growth areas. ach, we have already seen rebound there, but i think there is more of that to come. a lot of the e-commerce for example, has no real exposure to trade with the u.s.. they were kind of falling in sympathy. i think the insurance sector has also weekend because the

industries have come down. i think these guys should be coming back. , our investors have gone into tech, insurance and perhaps some consumer discretionary names. pretty early on, since monday, basically. you can see that consumer stocks. made in china has a whole different meaning now. they havevalue chain, acquired quite a bit, so that is certainly something to watch in light of these trade tensions. thank you for joining us here in hong kong. some numbers coming through from tokyo so far, talking about the latest land scandal as well. we are waiting to hear the testimony coming from the tax commissioner. we haven't heard too much yet, but the landfill filed

apparently was changed by one ministry of finance department. we're also hearing from the japan cabinet secretary suga --king about a mistreat trip mystery trip from kim jong-un to beijing. they said that they were quite surprised by this. not comment on the report of kim jong-un visiting china, but there are watching it with great interest. betty: let's read, basically declining to comment on this visit to china as you mentioned. they are still gathering information on any kim jong-un visit to china. but as we heard from stephen engle, it could be kim jong-un himself, or his sister, or another senior official. we will likely know after the visit. still more ahead on "daybreak asia."this is bloomberg. ♪

♪ yvonne: chinese conglomerate hna abandoned the ipo of its group, less than 24 hours before the shares were meant to start trading. prudence is here to discuss that with us. we thought this was going to be a sure thing, what happened? deal athey cut off the day before the company was about to start trading. ipo happened is that the

valuation was a bit expensive, and that is why they did not build up demand for the offering. also, hna was a bit unlucky because last week, the markets -- the equity selloff happened. their value drop 6%. it. yvonne: is a bit unfortunate for them how critical was the sheer flow for them? prudence: it was really important, because the deal was billion,bring in $1.2 which would help them to repay their debt. they told the creditor earlier this year that they would sell about $16 and cash in billion. so this $1.2 billion was kind of cushioning for them. yvonne: what else are we looking for in terms of asset disposal? it seems like they have come full circle? prudence: what we are expecting is another company to try the

ipo. they would create some uncertainty about this upcoming ipo. in thee will see more coming months, it might be easier for them to sell, when the price is still ok. yvonne: thank you, prudence. asia conglomerates reporter on hna. betty, we have more coming up on ." ybreak asia betty: let's read, much more ahead. we are watching the equity, metal prices as well as the yen. this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

rishaad: asia pacific equities recover on wall street. trade warfare starting to ease a bit, risk appetite appears to be back. the rebound sending the $to its lowest level in five weeks against all the g-10 fears except for the yen. also ahead, china wants composition for trade, the first step on a road that could lead to a full-blown w.t.o. dispute. in hong kong, i'mry shat salamat. -- i'm ry shaut -- rishaad salamat.