>> tech is dragging wall street down. bonds are surging. >> tesla is a big loser falling about the doubts of making the model three. president trump is considering new moves against china with plans to restrict investment incentive industries.

i'm hai from sydney, di. heidi, it is just after 6 p.m. here in new york. we look at the action on wall street and how it plays into the asia-pacific trading day. blame it on tech again. it was the tech selloff that drag the market's down here in the u.s.. haidi: absolutely. it goes to the heart of the vulnerability in this market right now. sector,, wee tech are losing a little bit of momentum, are we betty -- heart we betty -- aren't we betty? betty: absolutely.

there's a report of the trump white house make wrecking down on chinese ventures causing investors to hit these sell button. chart,and the technical that shows the underlying weakness,. the set up for another down day going into wednesday. this is the market snapshot. the loss has accelerated rough the afternoon causing the losses of over 2%. nasdaq.% for the in terms of bonds, the yield is being pushed. the dollar made earlier gains. what there is concerns about, is how this plays out to the west of the week. let's take a look at the big movers. what we see here is the size of the losses. tesla is not necessarily a tech stock but their bond and lower -- stock was lower. with the model

three. if we look at nvidia, this is a that has done a self driving vehicle test with uber, announced it will step -- temporarily stop the tests. and twitter, you have a shortselling citroen saying twitter is uninvestable at this point. that, of all the social media firms, this one is the most vulnerable to technology -- to any kind of scrutiny and regulation by government officials. a lot of that coming from the scrutiny on facebook. let's go with the facebook chart. it has been down for close to 20% since the dow turned over the scandal involving exploitation of its data. that the ceo,ring mark zuckerberg, will likely testify. the house committee has not confirmed it but he has signaled

he will be speaking shortly before the lawmakers. there are serious concerns here about what is being the future for facebook and for its model as it continues to be in the crossfire. let's go to the bloomberg on the tech sellout. g #btv 611. the tech fell off dramatically dragging the u.s. tech stocks lower. monday was a rebound story continuing into the tuesday session. in the final hours, tech took everything lower with the exception of ge, which we will get to in a little bit. tough day raising questions of the direction of the market going forward. early in therted morning. we had chapter among many. what had no confirmation at all, what do we do actually know? >> ge has had a very tough ride in the past year on this stock.

speculation, would've billionaire such as warren buffett be involved, we saw the stock rise. take a look at the stock chart 4ge. the stock has been down significantly for the past year. particularly in the most recent months where ge was forced to announce there was an inquiry and some of its financial bonds ands regarding stuff. what is going on here is a question on whether it is plausible that warren buffett would come in. in 2008, it was buffett who rode into to ge's rescue during the financial crisis. he said he might consider an investment earlier this year, so there is wishful thinking in the market right now that this may

be something that would happen. it certainly has a lot of investors buying into the stock in this particular session. week,is plays out for the and whether we hear from ge on this, both companies arm him on this. mum on companies are this. betty: earlier she was talking about tech stocks, well twitter, we have been watching, haidi, there was an interesting report from citroen that has become muddy waters, right? another short seller that is well known for shorts that they are taking in the market. research came out and said twitter is placing a bet on that company plunging to the lowest price in six weeks. sayshort position, they what is happening on facebook and snapchat, that is going to affect twitter, and i think it haidi, thatng,

maybe we need donald trump to come in and do more tweeting. he is apparently a big an increasing part of the evaluation on twitter. maybe they might need a savior there. haidi: one of the accusations have private they messages. messages sell private to licensing firms. betty: i was interesting when i heard that. haidi: me too. [laughter] will know more because we know jack has been called alongside mark zuckerberg to testify. asia, it isn looking pretty choppy as we head into the asian open.

new zealand is always -- already trading lower. this great report out, from is sayingt gillespie that the u.n. is being firmly caught in the crosshairs of a trade battle. in australia, we did see weakness across the aussie dollar. the bloomberg dollar index is seeing that strength against all auzzie was the one that lost. tradingie qe pair is there. gold is up by a quarter of a percent and crude is slipping away from the two month high. we had a preliminary report talking about inventories in the u.s.. .torage is seeing much higher

there is growth concerns on the trade war across the commodities complex. let's get the first word news with alisa parenti. >> as you have been mentioning, facebook fell have really as mark zuckerberg was expected to testify on capitol hill. the time and date is under discussion. he is the discussion of democrats of and republicans the misuse of the data scandal. address is expected to congress, he refuses to appear personally in london. growth or 2017 as the strengthening economy curves bad loans and the government debt campaign boosts lending margins. there's a 3% rise in net income. china construction bank saw a rise in more than 4%. at bank had a 5% gain. all three lenders beat analysts

numbers. agrees to sell more than $4 billion of australian mines in just a week. real agreed to sell its last cold mind -- coal mine. that's to private equity firms. that follows announcement last week. company aims to have a direct flight to chicago. they take more 749 -- a sanalready announcing francisco route and is evaluating a direct chicago flight as well as of seattle and dollars. qantas is optimistic. global news, 24 hours a day, powered by more than 120 journalists >> --

the trump administration is set to be contemplating using an tosting law of relations restrict chinese investment in sensitive technologies. any curves would be the latest step in the trump plan to punish china for what the u.s. sees as violations to intellectual property rights. let's go to greg sullivan for more. why do you think they are trying to cope these investments into companies and tell us about this law that is one of the options. >> as you said, the trump administration sees trade with china as a broad deal. they have charged china with stealing of intellectual property of american companies, and with this action, they are seeking to protect what they deem as significant assets for companies or important industries from being acquired by china. they are trying to block chinese companies from getting these important technological companies.

administration is said to be considering is looking at an old law from 1977 in which it would declare a national emergency. once a national emergency was the glare, he would have the power to block transactions or seize assets. this is significant, it is a bit broader than the usual process for protecting american industries by going through a committee. betty: the administration is bey beyond to curb these investmentsond. >> what they are saying is instead of going through this, case-by-case review process where acquisitions have to be reviewed by the committee, they are saying we should be looking at broader industries that need protection. what they would do, under this

law, they would declare the national emergency and the trump would theoretically have the ability to block transactions. a little more broad than current. betty: it is more broad, and greg, is it unilateral? what can congress do about this? greg: that, i'm not sure. it is unclear on whether congress would have much of an issue. as trump has taken these broad tariffs,n trade, the lawmakers have been quick to say they are supportive of narrow actions against china. they also view that as abusing trade practices. lawmakers also seem to support beating up the committee responsible for that. there is talk in the house in the senate. the senate's number two republican is sponsoring the. -- sponsoring that.

so, again, there is support among some in congress for cracking down on china. are certainlye going to be watching the reaction to this through the asian trading session. greg sullivan, thank you so much, bloomberg washington consultant. still ahead, formerly owned by the microsoft cofounder, snapped up by a collector within hours of the opening, we will have details on this a little later. haidi: up next, the dollar continues to get weight on. we talk about it in just one moment. this is bloomberg.

haidi: i'm haidi lun. betty: i'm betty.

the dollar comes back after today's of decline, but continuing trade tensions may push it lower again. bradscuss all of this with . let's talk about the dollar year. it has been on a significant downtrend. if you see anything -- do you see anything changing this course? >> there are a lot of fundamentals that are good for the dollar. the u.s. that is hiking rates because of the underlying support from an interest rate perspective. stimulus is coming down in the form of taxes from trump. those are positives. at the same time, we have escalating trade tensions. intoeally rolling over affects, too much, but depressing the dollar a little bit. to the extent other currencies are rallying more than the dollar otherwise might. betty: like the yen? like the yen and emerging

markets. it is a repricing of expectations for those banks. betty: what would fed raising rates be supportive of the dollar? they have been doing so but the dollar is declining. brad: you're right about that. at some point, that. because the dollar used to be a funding currency. you could borrow very cheaply, and now it is rising. we surpassed the aussie tenure rate, for example. we look at relative kerry rates and we say, now i can own dollars. it will get to a point where that will help. in the meantime, it is buying every other currency, that is pushing the dollar lower combined with the tensions. haidi: do you think the administration does have a coherent policy and is it a weak dollar policy? brad: i don't think it is a weak

dollar policy. long-term, medium and long-term, it is a strong dollar policy. what the administration got caught up in is they were saying it is ok of the dollar is weaker because that will help exports, and the economy. they seem to be saying that is ok by them. i don't think they intended it to sound like a change in dollar policy. we saw -- theynk in the short-term, don't mind a little dollar weakness. no trump is trying very much to keep growth high in the u.s., and that sort of thing. a weak dollar at the margin sort of health that. haidi: in the context of the trade tensions, despite how much we don't know, you get more voices sounding bearish on the commodity markets. are those ones that you would stay away from in the

short-term? brad: absolutely. in the short term for sure. depending on which chart you look at, for example, the aussie dollar, on longer charge it looks ok. on the shorter ones, it looks like it is breaking down. iron ore has come off a little bit which is weighing on the aussie dollar. trade tensions between u.s. and china will weigh on the aussie dollar with the leverage they have on the chinese economy. and they have a housing issue as well. was relatively positive and upbeat in their latest minutes. at the margin, i'm not sure i would be owning them. the kerry differential is not -- no longer in all these paper. haidi: brad, thank you for joining us. don't forget, you can find the in-depth analysis on bloomberg radio. tune into "bloomberg daybreak: asia," you can download the app.

that's a bloombergradio.com.

betty: i'm betty liu in new york. indi: and i'm highly little you are watching "bloomberg daybreak: australia." mark zuckerberg is said to have agreed to testify on capitol hill. the time and date is under discussion. he already said he answered -- would answer questions if he is the right person in the company. congress said yes and he is expected to testify before them. sarah covers the and joins us now. sarah, it is pretty risky putting him in front of a panel at thisestioning sarah: point, facebook did not have much choice. this is a scandal hitting at the core of what users fear about their data, their privacy.

we have not seen facebook stock get hit on the russia and manipulation, on racist ad targeting, all of those things have blown over in terms of how people perceive the company. this is really hitting home, though. this is the point at which have blown over in terms of how people perceive thecongress wand about facebook, which is, are they good stewards of the user's data. and what happens with all that data that they shared years ago? betty: this going to all be about political theater over getting more information of mark zuckerberg? sarah: part of it will be political theater. i went to the committee hearing in november on russia, and there was a lot of congresspeople trying to take a moment to make their case to facebook. these are really

serious questions the company has to confront. havell of which they will answers for and they already made it clear that they do not know whether cambridge has the data that the new york guardian reported that they did. they have not watermarked the data that traveled beyond their own servers. you will be able to give satisfying answers. casell want to make the that this is not something to regulate. betty: although he did say at some point he was not sure if they should be regulated. when he is in front of congress, what do you think, at least for facebook, what will be considered a win? leaving the testimony. what would be a win for zuckerberg? sarah: if congress people come away saying we really feel we understand more about how

facebook works now, and we think in anacebook is understanding with us about how big a problem this is. i don't know they will be able to give satisfying answers about the problems that occurred in the past. the best they could do is they are really thinking right now about the problems that could go on in the future and in making sure those will not cause crises down the road. betty: sara, thank you so much. latest check of the headlines at this hour. tesla is dropping the most in almost two years under growing doubts it will reach his production targets of the model three. the bloomberg tracker estimates by they be making 975 end of the week. shares were hit by news that u.s. -- u.s. regulators are conducting a second

investigation into a crash involving a tesla. haidi: apple is squaring up to google in indication of the market. it is releasing a new ipad for students that targets google chrome book laptops. they have become popular in schools. it costs $299 for students and teachers. others. this will compete with google's classroom software. barwin costs for australian banks has jumped 22 points heading for its biggest monthly gain since september. rates have been surging and bondholders use that when they need cash. they have erased the advantage of borrowing dollars in swapping them back home. this means banks need to borrow domestically to add to the upward pressure. former trader is betting against the aussie and the yen, we will tell you why, next. this

is bloomberg.

haidi: it is 930 -- 9:30 here in sydney. we going to the asian session and tech again is losing momentum. we had another round of weakness showing a fragility in this rebound that we have seen after the worst week of decline in sydneywo years area futures look like this. i'm haidi lun in sydney. newy: and i'm betty liu in york. let's get to the first word news with a alisa parenti. >> the trump administration is considering a crackdown on chinese investment in technologies. by u.s. considers sensitive

invoking a law considered for national emergency. we're told treasuries are identifying sectors in which chinese companies would be barred. any restrictions would be another attempt to punish beijing for perceived ip theft. there are signs of a rift emerging from the two you economies. offery is willing to concessions to the u.s. to avoid tariffs on european steel and aluminum, while france does not want the block to make any such offer. with a little more than four until the tariffs run out, the u.s. is trying to identify a common approach to president trump. likely to meet president trump on april 18 to coordinate strategy of north korea. the nikkei says they will discuss the talks with kim jong-un that are said to be happening by the end of may.

oblique is -- shinzo abe is said to -- a compensation package worth more than $43 million after he took over. that's after he left his previous job at hamilton insurance. stock options valued at 16 million. second ceo.s global news, 24 hours a day, powered by or than 2700 journalists and analysts in 120 countries. this is bloomberg. haidi: let's get an update on the markets. we had a hard time when it comes to the u.s. session feeding through here in asia. dollar, is down. we get the outlook according to one trader going into the next

couple of months when it comes to the kiwi and the aussie. in australia, this is how we are shaping up early with primary weakness going into the sydney open. we saw the u.s. dollar higher against all of its peers. a little more broadly, we are taking a look at the yen as we go into the tokyo open which is looking pretty weak as well. at 14163.s 2.8% with charger he serving -- surging. -- treasury surging. by a renewed round of weakness when it comes to tech stocks. underway, gets however global markets editor is here. tech stocks are responsible for

more of these larger swings. the story really changed. >> in a sense, it is changing from day to day. and that is swings new. traders have not been in this environment where the magnitude of swings driven by market leaders like the technology giants, we haven't been in this environment. with a prognosis for how the trade war plays out and how you price that into acids, means you will get huge swings. as we saw in the bond market, it is affecting other areas of fixed income. a 10 year yield move is huge as well. out, looking at thatv 7514, this shows you since we'd started tracking the index in 2014, moves over night the biggest seller we have seen. these are large moves.

the difficulty with trade is trying to assess whether this is a longer-term move. at the moment, it is the structural overhang of the market. its people not really wanting to take more risks. volumeu see the low rallies, and they get pulled back very quickly, we set up for the asia session today, so it is a pretty weak set up across the board. tech in asia seems pretty rattled. adam, as it relates to the trade war, wisely betting against the australian dollar and the chinese currency? itbetty, this is brett over and less capital where he learned his trade. his current thinking around how the trade war is playing out is that he once to own the u.s. dollar, relative to emerging-market currencies and some of these commodity currencies like the australian

dollar, new zealand dollar, and the canadian dollar. he is looking at order of magnitude moves between 2% and 5%. he is not talking about 5% or 10% moves over the next few months. these are small moves but clearly big enough for a trader like him to make significant money if this plays out, or if the trade war continues to eat into the risk appetite that you would typically associate with those kinds of commodity currencies. it is an interesting play, he has had a good bet on treasuries in this route that began back in september last year that picked up through two january. -- through two january. we will see as the commodities come up a little more, betty? betty: adam, thank you so much. the fed is expected to make two more rate hikes this year, but

you would never know it looking at the bond market in the u.s.. the 10 year yield rally below 2.8%. again. the yield curve is signaling we could see a recession, a slowdown in the economy, who knows. kathleen hays is sorting this out. what do we read in the curve? >> you can't ignore it. you have to say, ge, dupont traders want an economic slowdown, and of course, we know the tech stock fell off. but when you see the 10 year yield falling as it did, the blur wondering whether whether this could be like 2017 or not. taking a look at g #btv 523, you can see the 10-year note is up over 2.9%. we had this rally picking up in the last 24 hours. closing at 2.77% on the 30 year bond. of course, it is below the 50

day moving average in december. in the midst of all this, there is a tweet where he recommends bonds and he says the u.s. economy is slowing. there may only be one more fed rate hike. that is another bullish comment from bill. we know trade tensions, is something on a u.s. bond rally. you can think about a slowdown, or a recession. let's take a look at g #btv 5126. when you see the yellow curve flattening, you can see the red bars steepening, it inverts, and you get a recession, could that be were the u.s. is headed now? story, and ego story talking about the fact that people are more worried about 2020, when the impact of the tax

cuts are starting. the near-term, most economists are saying we are ok. had theathleen, when we stunning rally in the indian bond market, once traded -- 41 straight is getting a good surprise. kathleen: that was a good surprise, wasn't it, haidi. the prime minister's government is announcing they will sell fewer bonds and that has reversed losses since 1998. theyovernment is saying will auction 48% of the plan to sales in the first half of 2019. what the situation was, the bond to thatise was due supply. there is some sense that the r.b.i. move might be toward rate hikes. let me show you what this looks like in terms of the bond market since 1998 and how it has improved overnight with this announcement. here, it was a

vicious bond market selloff. look at that. that is insane. up to 7.74%, back to 7.62%. this has kicked off a huge rally. the bank in india is warning to do the selloff , with lower debt sales, may backfire in the second half of the year because they might have to speed up the number of bonds. what they are trying to avoid is any instability ahead of the 2019 elections, haidi. maybe it is a little bit of a gamble, but for now, if you were a bond trader, you are looking a lot better now. thank you so much, kathleen. our policy editor. when company says it is vital for companies to leverage for the downturn. i reported joins us now for

more. the belief that u.s. companies borrowed too much when interest rates were low in things were good, and now they are incredibly worried about the sector and that u.s. companies may not be able to with and a recession. warning, pay it back is much as you can now. that will go a long way to hedge everyone's risk. haidi: get your financial house in order while everything is good. what else are they worried about? >> there are two other risks that they have singled out. the first one is rising uplation and if it goes quicker than expected, that could potentially push interest rates up much quicker than everyone anticipates. the second is the potential trade war between china and the u.s.. it is not the base case scenario, it is a risk that cannot be dismissed. impactd definitely

market policy going forward as well. betty: how are they hedging their portfolios in the middle of these rising risks? ruth: they are going short duration bonds. they are also incredibly cautious on the high-yield c's andthe triple emerging-market debt which is proving to be risky. underway for the commodities sector. they're pretty cautious as a whole. the last one is highly leveraged chinese companies is underway in that sector as well. betty: thank you so much, ruth. rio tinto is calling it quits on coal. we talk about the $4 billion departure next.

betty: i'm betty liu in york. haidi: you're watching "bloomberg daybreak: australia." rio tinto is out of the coal business. they are selling its remaining lines. it is the end of a long road. >> about five years. they have achieved it this week to sell the coal project. 42.2 5 selling it billion. that is on the heels of glencore. bought thecore that coal just up the road for us since sydney as well as part of the exit strategy. betty: wise rio tinto getting out of coal? see coal has gotten unfashionable. has capch of england

investments at 10%, but for more economic reasons in the case of rio tinto rather than sentimentality of the fate of the planet. they are focusing on more productive assets and the assets -- the revenue from them has been declining over the past decade. that goes down to about 7% revenue. they are focused on iron ore, aluminum, and they are continuing on other ventures. betty: paul, thank you so much. bullet trilogy is rippling through commodities after president trump hollowed through that --rade care of trade tariffs threat. remy is there with the bloomberg chart that we need to know. volatilityat the that is happening here. that is the word that has been here for the past month or two.

according to analysts, that will be here to stay and translates to weakness. take a look at the commodity index which is down over the past few months by nearly 3.75%. 26 anda high on january the last time it was at the level was back in 2015. let's flip up the screen because i want to go into oil. 7148.s g #btv my question for all of you, are you ready for more u.s. shale? the eia comes out on wednesday in the united states with its most recent weekly report. we are expecting that to rise for a fourth out of a fifth week in a row. this is the blue bar you are seeing here. in addition to that, we are seeing the price of bread here teacher back and forth along the $66 mark. we can also see the opec projection here.

it is falling over the past several months as the curves are in effect. i want to show you what is happening with oil. if we have this full-screen, i can bring it up to you. if not, what we are seeing here -- actually, this is it. this falling over the past few days, is heading into that eia data, both for crude and brent crude. want to the side. also not just oil, we are talking about iron ore, and copper. iron ore is g #btv 415. the big takeaway is that the could fall byl the end of this year. analysts are saying this is because of what is happening in china. they are not using as the expected to. there is also seasonality issues with construction. we can see the price of iron ore popping in the second quarter,

but fall as they see more supply come online. finally, to copper, this is g #btv 117. we are seeing here that the mental in blue -- metal in blue if any -- is headed for its first quarterly fall since back here when donald trump was first elected to office. this has been both something that has benefited from trump's rise and now the rise of trump's tariffs and the global trade war. we are seeing a possible knock with copper. bellwethereconomic there. there is a lot of volatility happening here, haidi, and according to the analyst, they expect more weakness on the horizon. love, remy,the thank you so much for that. they do so much for

that. you can watch us live in catch on tvthe past interviews . you can also dive into any of the securities on the bloomberg functions that we talk about. join in on the conversation by sending us is the messages during our show. this is for bloomberg subscribers only, so check it out on tv . this is bloomberg. ♪

betty: you're watching "bloomberg daybreak: australia." a quick check of the headlines. google may oh oracle as much as $8.8 billion from using java code in android operating system. said thatse of java android went too far violating the copyright. this was first filed in 2010 and has been sent to a federal court in california to determine how much google should pay. -- i:

on the iphone x, retailers and regulators, there is an edge to edge display. they said they had the third best global sales with 11% of the market trailing apple. alphabet's self driving unit is teaming up with jaguar on autonomous vehicles. the integrated systems into jaguar's suv's with the first cars being delivered later this year. they aim to have a sweep of 20,000 right hailer's available from 2020. -- ride hailer's. haidi: a private collector snaps of one of the top highlights at hong kong less than two hours after the viewing session opened.

it sold for 7 million u.s. dollars and had been put out by the microsoft cofounder who decided to sell the abstract work in asia. , it's cofounder, says there is a lot of buzz around are in asia. the asian market is a growing market. at the highest level, it is a small group of collectors, but they are trophy hunters, and are incredibly educated and want the best of the best. the painting that is being designed by paul allen, one of the greatest collectors, a collector who is higher nearing in his vision -- pioneering in his vision. these are perfectly made for this audience. that there are two types of audiences. the high levels, $35 million buyer, who is capable of spending $100 million frankly, and you have the more general

buyer spending below $1 million. >> they've said there is a lot andew collectors and asia, their mocha road and -- more prone to want to -- and they are more prone to trade. >> there is definitely a trading mentality in asia. people want to buy and grow. whatalso want to know that they are buying has value. those are characteristics that are valued around the world, but i think it is a trading mentality that is part of what the collectors think in asia. what we are seeing in the expansion, is the number of collectors. theseyears ago, we saw andectors that came forward one museum is a perfect example. private collectors wanted to give back to their community and make these phenomenal ecm's.

that is also -- that has also encouraged more collectors to come forward. it is an excessive passion. haidi: that was brett, the cofounder of the gallery at the art area there. the activities going on in hong kong, for "bloomberg daybreak: australia" this morning, yvonne and betty are up next with the next two hours. [laughter] allen >> we talk a little more about the likes of icy be and a construction bank reporting. we are also seeing banks come back on some of the big chinese areas. china analyst and he says we could see more re-rating when it comes to these banks even though we saw growth for the first time in several

years in china already. this leveraging campaign is helping as well. this reshuffling, he says, in the regulatory and insurance areas, the merger, that could be a disturbance for some of the financials there and we ask him why. -- revon ined to john continued about the political tensions. what is happening with the hardliners around the trump is increasing the likelihood of military -- or the chances of military conflict with the likes of north korea and others. she says to watch out and she will be giving her analysis, of course. haidi: we will continue to watch these trade developments, particularly with the report that the trump administration is

considering emergency laws to try to strike back at china again. plenty more to come, though. this is bloomberg. ♪

♪ yvonne: 7:00 a.m. here in hong kong. we are live from bloomberg's asian headquarters. i am yvonne man, this is "daybreak asia." declines after a tech selloff dragged wall street down. also renewed fears of the trade war. tesla falling the most in two years. doubts about its abilities to churn out the model three. betty: i am betty liu in new york. it is after 7:00 p.m. this tuesday. restricting investment in industries like technology. hasjong-un