♪ haidi: u.s. market sliding again as tech remains weak and amazon replacing facebook as the fed top punch bag. tesla sure stumbling for -- sure stumbling for tesla. and we did it to a deadline in queensland and the latest. betty: any warning from the wto and that and we did sees the fif me trade war that can derail the global economy.

♪ haidi: hello from sydney are we are just passed 9 a.m. this is "daybreak australia". it is just after 6:00 in new york and the for the next hour we look at how all the action on wall street is going to play into the asia-pacific trading day. zuckerberg or bezos, you are not having a good day today, the tech names have been brought down by this broad-based tech selloff. the markets were choppy today and a quick reminder of how we ended to trade today. -- can see across the screen we are in a range in the markets. the s&p lower and the dow ending flat with a slight cell. the nasdaq also lower in the tech selloff continues setting up for a mostly lower open in

asia ahead of a holiday weekend. haidi: it is pretty mixed. you have to wonder if we see a separation between tact names given by the specific story or if it is widespread malaise as we get into this easter week. we have a number of key markets globally shut for good friday and asia. let's look at the setup, a mixed picture. we head into new zealand were trading is underway and significant downside of six tenths of a percent lower. we have the u.s. dollar higher against particularly the yen. . australia -- this is how we set up in sydney before we go off on the good friday break, sydney futures currently positive.

positive. we are weighed by the equity selloff and water selloff across commodities and metals. let's look at gold and oil futures. crude recovering from the lows of the session but under 65 a barrel as the stockpile bridging is expanding and witt doubled the estimates that was added last week. and this is opec and analyzed talking about extending supply curves into the middle of next year that helping sentiment. and we see weakness across the likes of iron against the backdrop of a global trade war story. ramy. go to d war withpossible trade china and the u.s. could derail theglobal economy, and

ducis is there is there's a commercial standoff between washington and beijing i could have much wider implications. china has really said it does not want a trade war but also said will protect its interest. plunged after the fatal crash a involving a double x suv raised doubts of the carmaker. shares fell the most after the company fatal crash involving tried to treat data fm the vehicle and tesla has not said if the autopilot system was engaged at the time. march has been brutal for tesla and the stock is falling on all but five days. ofdi arabia has a mission secondary emerging markets joining a group that includes indonesia, and russia. the country was put on watch lists and msci is expected to announce its decision of potential classification this

june. and reports say kim jong-un may make prime minister shinzo abe as soon as this june and leadership prestel party executives that can is willing to talk after meetings with president moon and donald trump. the first time kim has shown interest in holding high-level talks with japan to power in 2011. hes possibility arose since returned from a trip to beijing. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am ramy inocencio. this is bloomberg. betty: let's turn back to the u.s. markets close. the hits keep coming for technology. the nasdaq is on pace for its worst monthly loss is january of 2016 in the tech heavy nasdaq is down as much as 6% for the month. su keenan is here for more on

this bearish sentiment. it is not letting up, is it? it looks like there is not much of a movement, but that is a light by swings and volatility has become the new norm. also had the dollar and bonds moving higher i'm strong gdp data. the 2.7%th exceeding expectation and yields holding below 2.8%. gold and oil both falling nbc oil bouncing back in extended trading but was down i need bearish supply report that comes up every wednesday, showing able to once again. because to big movers you see thank stocks -- fang stocks. amazon in the white house -- andirs, fredericton people threatening to

cancel subscriptions, and a lot of people upset. tesla is under severe pressure, and facebook catching a little bit of a break on stock movement, but not in terms of the overall picture. look at the one-month chart for tesla because it is not just the stock under pressure, it is the bonds that is under pressure. there is a credit downgrade and real concern by bondholders that you are not going to see them being able to deliver on promises. a lot of calls for the ceo to speak out here, can elon musk deliver is the question? the unveilingnd of its new products and the new menu of privacy settings -- that being offered in response to the outrage of the handling of user data. let's go to bloomberg 7514, is

the record plunge that fang darlings saw as the tech selloff worsen. it is repeated again and that has rattled the attack balls -- the tech bulls. su, you mentioned amazon is the new punching bag replacing facebook and this has to do with president trump's alleged obsession with the company. what is the story? organization news him out with a report that the president is obsessed with amazon and planning to regulate and also possibly take a look at the tax regulations for amazon. let's go into its chart and look at the pressure it was under just in the most recent session. down in a big way, and he sought stocks come back in the afternoon after an analyst

report said this is a buying opportunity. you also had a white house spokesperson saying the president hasn't changed his stance on amazon but there is real concern. loser spotd the top going into this week and amazon, which lost $53 billion in market value on wednesday session has taken over. you continue to see decoupling and this group. let's go into the bloomberg once again -- this is called tech volatility uptake. apple, when you saw is shooting up -- before erasing those losses on the bit of positive news, but again it is certainly setting the tone for these stocks in this holiday shortened week. volatility and severe pressure

and looks like investors are playing it safe in terms of selling for short-term. the old and new normal. in northern kiwi designed -- queensland, this is a massive project. it is a big project and the plan was to get shipping from the carmichael mine from 2020. a person familiar with the matter says that is to slip by a year because he failed to obtain $3.3 billion in funds by the march deadline. it is plan b, the source says they may look for unconventional funding sources. this will be capital injections from other businesses, maybe selling a stake in the port or around infrastructure, but getting the money is a problem. local authorities in queensland state airport to block a

government loan for this project and there's a number of australian and chinese banks wes said they are not touching this one. betty: getting the money together isn't the only problem the project is facing, right? paul: it is hard to know where it starts, another problem is the geography. it is in land and it needs a rail line of 400 kilometers to get to the cost, and once it is there a cold terminal needs dredging, and that is on the edge of the reef. you can imagine the environmental. concerns that part of queensland is extremely dry, you need a lot of water, so cattle grazing -- concerned with the impact the mining will have on water. and on the bigger picture, getting the public on board of digging coal mines in the outback -- the odds seem very

stacked against this mine, and that is before we begin to talk with the coal price. much. paul, thank you so will speakhead, we to the boss of a saudi arabian stock exchange as they win an upgrade from the ftse russell, joining us from an hour's time from now. haidi: you don't want to miss that conversation, and still ahead, investors hitting the brakes on tesla and the questions of a vehicle crash in california and we look at how the company is handling that situation, later. ♪ next, jay powell maintaining janet yellen's legacy of gradualism and we discussed the outlook for the fed. ♪

haidi: we are counting down to the sydney open is the final trading session of the week as we had into the easter weekend. futures looking positive amid lower with asia picking up another tumultuous session and wall street. a before they in sydney. betty: you are watching "daybreak australia". gates rising after reports that north korea is willing to meet japan and furthering easing tensions in asia. let's discuss with that hsbc head of strategy. markets,, the currency in particular the dollar. is it going to be a dominant dollar? it is making it confusing for people trying to solve -- i am

not sure i am going to help here. i think you are right that over the next month or so the development on the trade side and the interaction with china and how that plays will be a key determinant of the dollar in particular against market currencies. as you mentioned overnight, theey create news dominates dollar yen, and it is unusual to see it pop as much as a bit today, and the yen weakened against the spectrum of equities. crosscurrents are having influence and making it tricky. betty: is this unusual? issues arepolitical in the forefront but is this unusual? it is almost senseless in a way? inwhat happens is news comes and the session and the news is a test with the whole u.s. trade policy and has gone to the back burner as the process is underway. and and we have to sudden

surprise visit from the north korean leader to china and that moved a land. it is encouraging that we have dialogue on trade and it should enable the global economy to behave itself. at least it won't be as distracted by these elements. betty: is it safe to say the fed is less of a factor? >> we were watching the meeting the last time around, so perhaps not as dominant. for example our dollar view at hsbc, if the fed goes another two times or three times, but in the context the dollar is going to be the strong swing factor -- that micro debate, i suspect not. the fed related dollar move happened in 2014, and now it is less of an issue. daragh, we heard they are also trying to negotiate with us treasuries and south

korea and an agreement on avoiding competitive devaluations in the currency. if you look at the fit site come is that a signal that the don't want a strong dollar policy? daragh: i think it is the part of a narrative and they talk about the context of trade policy. they need a level playing field. but on the currency front they are conscious that policymakers have been reluctant to have and it is suggesting that they don't want head of devaluations to become a positive. the g20 have been talking about this for some time and the reality is the central banks can still use monetary policy to affect currencies. to be honest, they have done it in g10 and g7, and most notably in japan. ishink the very fact it

getting mentioned shows there is still a sensitivity and the rest of his vision about this -- and the u.s. administration about this. haidi: the first selloff was exacerbated by expectations and this time around was equity volatility, but not so much in the bond space. are you seeing that the percent level is somewhere we reach imminently or has volatility and stocks created this renewed safe haven demand in the bond space? daragh: our forecast is bond yields through the remainder of the year will trail lower in the u.s.. the short answer is no. there is a strange disconnect between bonds, equities, and the currency market. they don't necessarily behave as we expected them to historically. i don't think that we have the ingredients for u.s. treasuries spiking higher, and by extension it is unlikely to recover from a

much stronger dollar in the short-term. fed, ispeaking of the want to play you a comment from paul krugman and this is what he said about where the fed should go with rates. >> i would not be raising if i was the fed and it is easy for me to say -- but so far inflation is still slightly below target and their target is too low. betty: would you agree? daragh: i have some sympathy. we are looking for one more next year so we would be on the dovish side of the market. betty: on a much more dovish side and powell. daragh: i think we'll see inflation numbers will remain subdued and the fed will realize we are not getting the exclamation towards target that we anticipate and they will have to adjust accordingly. some sympathy there -- perhaps not. betty: sympathy for who?

daragh: four krugman. in terms of the view. betty: he's at inflation target is too low, do you think it is too low? daragh: it is so low for so long, we should target the overshoot. betty: right. daragh: it works, and a potential growth rate of this level, should be targeting 2% inflation? it is up for debate. and that is why we have economists, we never agree. betty: that is what keeps you employed. [laughter] given everything that has happened in the last week, what did you glean from that meeting with powell? daragh: i suspect he will be pleased how it went, i did see your bloomberg reporters complaining about speaking to quickly, but who am i to criticize? [laughter] well,: he communicated

and he is not shaking things up. i think we are pleased how it went out. the dos suggest there is a debate if we go to war three times this year, but we were happy to massage that debate going forward. sterlingquick word on -- you think it has run as far as "given we have not had a great deal of progress post-brexit what it is going to look like? daragh: i am scratching my head on sterling for a while. i think there is good news on the price and very little risk of things unraveling. it has been progressing and we had the transition deal but there are hurdles. the irish border issue amongst them. we are targeting a move back below 140 may be at 132 next year.

downside risk is there for sure, not just on politics, but the economy as well. we should get one more a tight from the bank of england, and then i think it will be done. the economy cannot take anymore and there are showing signs of slowdown. that adds to the political risk for sterling that you might have cyclical pressure on sterling as well. you, hsbcat to have securities had joining us from new york. you can get a roundup of the stories you need to know to get your day going and boomer subscribers can go to dayb on their terminals. you can see more on the deutsche bank story and more is available on the bloomberg anywhere app. you can customize settings to get the news industries that you care about. this is bloomberg. ♪

betty: i am betty liu in new york. haidi: them heavy look in sydney and you're watching "daybreak australia". a quick check of business headlines. financials has relied on money from obscure part of the market and seems to be drying up and has sold assets back to securities tied to consumer lending. down 74% in the previous three months and tech giants a wrapping up consumer lending to meet surging demands. betty: insurance is planning an ipo of its management unit that can raise as much as $3 billion. where told the insurer has picked goldman sachs and jpmorgan another banks for a potential listing in hong kong by september. millionght raised $60 in a 2007 annual report. haidi: the former chairman of

insurance has gone to trial of masterminding a $10 million fraud and ordered financial statements to pop up capital. court documents allege wrongdoing dating back as far as 2007 and he is the first executive to be publicly filed on corporate the risks. let's get a look at markets as we had into the trading day. easterzealand we have to weekend ahead of us and we and the week on a somewhat weaker note. new zealand off of session lows and the kiwi dollar at .7208. as you mentioned, looking towards the sydney futures market, pointing to a

slightly higher open and a aussie dollar taking a slight bit. up next political tension on chinese money in australia and a watchdog says chillout. more in a moment. this is bloomberg. ♪

haidi: it is 9:30 a.m. in sydney markets, and we're at the end of the shortened holiday trading week. a bit of full day in sydney. we are seeing weakness in the currency and the aussie dollar hitting the three-month low. i am haidi lun in sydney. betty: you are watching "daybreak australia". let's get the first world news with selina wang. >> the fallout from the facebook data scandal is sliding and a just and privacy settings on its network. sources say digital assistants

and video capabilities are being reviewed to ensure they make the correct trade-off regarding user data. devices were to be previewed at a facebook developer conference in may. facebook is no longer a top punching bag. amazon is the new target, leaving billions of dollars in market cap after acxiom said president trump is obsessed with regulating to company. it is not the first time he is turned his attention to amazon as he accused the company of sweeping low prices. deadlines to ship thermal coal from northeastern cleveland come at the carmichael obtain after failing to money from lenders and it will continue to look for funds and expect the cold production to be

delayed by up to a year. in get has confirmed it is selling 76% of its national flag carrier as well as two thirds of its airline carrier thdebt. the carrier will be sold in the offer and sell a stake in the unit separately. singapore airlines and other groups have indicated various degrees of interest. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am selina wang. this is bloomberg. haidi: thanks for that. as trading gets underway, bloomberg economics editor adam haigh joins us. we saw the bond market role, and this time it is different. >> what you are seeing is a huge spike in volatility, everyone is is havingow stocks

make entered a moves and daily moves, but you are not seeing that in the bond market is interesting. this is how it looks like in the #btv 1777. volatility is coming down although we see a lot left in the early february move. what that does is it speaks to the idea that this is a very localized kind of tumultuous period we are going through that is dominated by the equity market. tech's debate leader in that and has been the big leader in the bull market in the last two years. a lot of this is profit-taking the reassessment of the environment. can see from flow so far, it is a lot more of a localized move within the equity market. --are coming to the equity

the end of the corridor and it adds to the sense that we get adjustments to the end of the week. in this part of the world the indian market is closed today and we have other markets closed tomorrow. expecting volatility to stay high to the equity market going into the end of the week. betty: and finally -- what has caused this momentum selloff and is it going to go lower? as you say, in a sense this shouldn't come as a surprise as there are plenty of people on the street warning that these momentum stocks are being bid up so much. it is all unraveling. but the pace of unraveling is surprising many people in the market. #btva look at the chart be 4040 -- some of the most popular stocks that are real winners of

the bull market unraveling now. a lot of people we's to money managers and strategists to pointing to the same things come up we are in the ninth year of this bull market and equity valuations are already being tested this point in the cycle with the fed continuing to raise interest rates. there is already a lot of jitters around and the sense that momentum is coming under a lot of pressure at this point should really surprise us. the difficulty is knowing how long it will continue for but certainly at the moment that is where the action is as we come up to the end of the corner, and you can expect that volatility to stay high. betty: adam haigh, thank you for that. as the trump administration targets china -- global economics editor kathleen hays is with us with more. we are waiting for this white house this of products that will

throw tariffs on. ishleen: we sure are, it supposed to be over a thousand, and there is a lot of products to put on your radar screen. navarro, his point man on trading at this point says that in order to preserve our lead in high-tech industries, the u.s. that is -- growth productivity -- navarro says that is why when these tariffs come out they are going to be squarely focused on china's made in 2025 strategy. let's us into what peter navarro told bloomberg earlier. tariffs are on the on the china 2025 industries. brazenly hasview, 2025 planhis china and pulled the rest of the world we are to dominate every single emerging industry of the future.

therefore, your economies are not going to have a future. strategy wass announced in 2015 and i want to show you the industries that china said we are going to grow and what one -- what more advanced machinery, robotics, power,rt, electric biomedical, new materials, and artificial intelligence. it is a big list, and thoroughly the trump administration is fromng at u.s. imports china and sank, we have imported a lot of electronics and other kinds of goods. this is why they are reaching out. robert lighthizer has until april 6 to release this list of new products that are going to have tariffs and it come any day. we suspect it could be this day

come but meanwhile the white house is claiming a win on revamp trade deals with south korea, which list a cap of potential u.s. autos in south korea from 25,000 to 50,000. you already could get koreans to buy enough cars to meet that cap that you had previously, what makes you think you will get them to buy 50 cars now? we'll see down the road. maybe it is a move in the right direction. haidi: what about the impact on the u.s. in the global economy? what are we expecting? peoplen: it is not just in general economist saying we are heading towards a global trade war if the rest takes more steps on introducing tariffs, specifically targeting china. the general of the wto in an interview with the bbc on wednesday said we are seeing the first movement towards a global trade war that could have a severe impact on the global economy. fourth-quartert

gdp figures for the u.s. revised up to 2.9%. that looks good and uber economics says it will get and we bounced to 3.4 in the second quarter. that also sounds pretty good, but the question people are getting more and more worried about -- if we get a trade war, what that is going to do to exports from every country, including the u.s.. meanwhile we also got news the u.s. trade deficit hit a nine-year high in february. #btv 4555,ook at bite the gap. this is the narrow gap during the global recession when no one was buying anything and now it looks at it is heading into deeper negative territory in terms of the deficit and maybe going further. i want to go to in other chart, #btv 2799. what the trump team is looking is trade gaps with china, abc u.s. imports from china are up to about over half $1 billion

and continues to grow. maybe not as rapidly but they are growing and exports from the 50. to china have around million and that is where you get a trade deficit with china. goldman sachs was looking at the fact that about half of u.s. imports from china are machine electronics. you get a $50 billion hit from china on these goods -- they said it would only meet 150 billions and they lost output of china at 0.4% of gdp and much less for the rest of asia, about $10 billion on these tariffs, mainly because the supply chain and china has become more diversified and people don't see the same hit they would have seen in the past. haidi: kathleen, thank you so much for that. while the trading relationship and investment with china has sensitivities,f

the head of australia's foreign investment what stocks as nation needs be more relaxed when it comes to cash coming from china, despite the political tensions that come with it. australian reported joints us. intervene on the supplications and is the message to chill out a little bit more? there is some confusion from bidders, and the whenns, the 11th hour is to chinese companies were not out of the bidding process, and that shook up the investment community. , davidonths after that irvine tim and he was frustrated with people be confused because he insists and was explaining to people that before they do anything different have a good indication of any rule studied the set and any limits on equities or the need for an australian group to have shares

in investment. his point is that all risk managers should come to them first and get a good idea of what is going on. his tried to get the point across to people. there's been a few instances in the past couple of years that has really confused foreign investors. huawei is coming into play as a competitively priced competitor when australia rolls out its 5g mobile network. how is that likely to play? michael: i asked specifically about why way, and he wouldn't commit specifically about companies. i asked if we should be wary the company offering a good price and more ms technology then it's american and european matters -- competitors.

i asked david our wine about u.s. pressure and he said we look at things independently something because different countries have different national interests. the example he used or we discussed was where the administration was not informed subsequently,and he didn't say it directly come but david irvine was the head of domestic security organization and yet a strong hand and hinted at security concerns, and for australia that is the most important thing. betty: michael, thank you. up next the pressure on tesla continues following a failed crash in california. will look at a growing list of problems for tesla. this is bloomberg. ♪

♪ i am haidi lun in sydney. betty: and you are watching "daybreak australia". tesla is punching for a second day after a fatal crash based doubts about the carmaker is the company tried to richard data from the suv. retrieve data. i want to bring in our the drug bureau chief david welch. it is not just the crash but

lots of doubts here that this is going to make the production goals for the model three, right? bondholders are looking at this fatal crash and there are doubts about tesla's ability to any kind of timely fashion to get cars out and get this whole trip of electric cars that can eventually run autonomously, and start generating cash. bondholders are looking at this and getting nervous to and hang in there even when stocks were getting bad for a while. betty: now it is different and burning money. how much are they burning? they are going through over a billion dollars a quarter. betty: wow. david: and i was just the rmb spend -- r&d spend. betty: they are born to run out

of money by the end of the year. they getrticularly if the model three out the door, and they are developing other models the semitruck they are trying to develop and a roadster. it would battery plans in the list of requires money and investors have been patient. but when you look at something like a potential issue that would hold up a time to me -- all eyes are on the model three the next quarter. does this fit into the whole story -- the negative story taking cold of the tech sector that regulation is catching up with the technology and negatively alter the way companies like tesla and facebook make money and do business? it puts aolutely, light of how precarious these business models are that rely on

a self driving car or businesses that are not established or make money. the tesla crash we are talking about, they haven't proven through the investigation that it was in autopilot mode. this could be any old wreck that can happen with any other car driving without a economist feature. hasspeculation it could be played into the stocks and bonds falling down significantly, today and yesterday. there is a bit of a pylon because you had the tragedy in arizona with uber last week. investors are licking and saying, maybe this motto is going to have to massive margins is not going to be quite as fast as we thought. much: david, thank you so for joining us. a lot of headwinds when it comes to autonomous driving. exposed tot is not

tariffs on steel and aluminum of any protectionist measures are going to raise costs across different places. the vast majority of the metal used will continue to do whatever it can to gain an edge. >> commodity prices like steel and aluminum have been going up in general. but the trade agreements we are seeing now are going to add extra cost to our business. almost all of our steel and aluminum -- 25% comes out of the u.s. we are not that exposed to any tariff is going to at cost and the reason is because some steel -- aluminum we cost especially material, only comes from overseas mills. we will experience some incremental cost on top of the backdrop of higher commodity headwinds. david: one of the things the

president has said is you can apply for a waiver if you can't get steel and aluminum the u.s. as for to apply for those waivers right now in washington? >> we will do whatever we can to make sure the company is competitive. not only are we looking to any possibility of working with the u.s. government, but we are also making sure we are fit as a company. and that means redesigning our processes and cutting costs, because customers don't pay for waste. we do anything we can is a company to offset headwinds. david: given the fatal crash and happy, arizona, it have anything to do with four, but where is fort when it comes to a time to miss vehicles? we saw that waymo did a deal with jaguar, do you wish you did that deal with waymo? is one of the top companies, and we are investing

in a robot driver -- and what is different is we are developing exclusive products based on hybrid technologies so we can run the vehicles 20 hours a day or plus. that vehicle is going to be unique, and we're also betting on moving goods. we are working with partners like classmates and dominoes and yft to develop those models, and running with drivers in the automated cars are operating to services and the drivers cannot lead. they are simulating the experience and we are learning a lot in miami. betty: dallas for president of global markets speaking to david westin. watch our past interviews with our interactive auction, tv . that into functions we talk about and become part of the

conversation by sending us instant messages during shows. this is for subscribers only. check it out at tv . this is bloomberg. ♪

betty: a quick check of business flash headlines. blackberry has joined a record quarter for software revenue underlying success for new non-smart phone offerings, beating estimates and topping even the most optimistic predictions. shares opened strongly in toronto and new york and then later erased gains. tpgi: a company backed by was to buy india's number two hospital chain and the business will create the country's largest operator of medical facilities with operations in the medical health enterprises

will also sell a 20% stake in diagnostics provider to the combined entity. betty: hasbro says the force was not strong enough in the star wars push. the ceo says was a mistake to release toys think that the movie's release and the promotion began in september and sales failed to maintain interest to december and hasbro's overall revenue fell in the fourth quarter and shares lost 8% so far this year. that is it for "daybreak australia" but yvonne and betty are up next for "daybreak asia". yvonne, what are you watching? yvonne: let's talk about good news with saudi arabia winning emerging markets status and the ftse russell. essentially for the status, they make changes when it comes to market reforms and relying on foreign investors into this

market. to our guest who will talk about what comes next and if they have enough momentum to get the msci inclusion in that decision is happening in june and what it means for the saudi aramco ipo. and moving on and talking about trade wars -- the head of asia-pacific analysts put out a report on china-u.s. trade war and what that might mean two different countries in asia, their credit rating and how it might undermine the stability. we will dive deeper into the geopolitical impact. haidi: looking at the domestic market for mm market education in china as families get more atluent, looking

international education and the 28.der and ceo on march taking a look at the outlook when it comes to demand for education and china. that's it for "daybreak australia". ♪

♪ kong,: 7:00 a.m. in hong we are live from bloomberg's asian headquarters. i am yvonne man. welcome to "daybreak asia." asian-pacific stocks set for a big open. a slide in the yen. weak tech will still play a role. tesla one of the losers in new york. and a question about a fatal crash in california. betty: i am betty liu in new york. it is 7:00 p.m. wednesday. the wto says they see the first signs of a trade war that could derail the global economy. some relief r